The initiative was earlier rumored to be funded by borrowing, adding to the country’s public debt, but instead will be financed out of Thailand’s fiscal budget over the next two years. The state-owned Bank for Agriculture and Agricultural Cooperatives will also contribute, providing digital capital for an additional 17 million Thais. The program is predicted to boost Thai GDP by up to 1.6%.

Last year’s pilot retail CBDC launch by the Bank of Thailand was embraced by 140 merchants, 4,000 consumers, and two of the country’s largest banks and was hailed as an effective tool to promote innovation and foster competition among financial service providers. However, the central bank recently announced that it has no “immediate plan”’ for a digital baht.

Brunello Rosa, CEO and head of research at Rosa & Roubini Associates, describes the central bank’s plunge into CBDC last year as a response “to the challenge posed by the crypto assets and stablecoins that proliferated over the last few years, but also to respond to the advancements made by China, which officially launched its e-CNY, or digital renminbi, in February 2022.”

Not all central banks are so ready to act on digital currencies, however. “The European Central Bank and the Bank of England are catching up with their digital euro and digital pound projects,” Rosa says, “while the US lags behind as the Fed fears that any advancement in this field may destabilize the role of the dollar as the global reserve currency.”    

Part of the proceeds—up to €2 billion—will be redistributed next year to the Swiss company’s shareholders through share buybacks. From the 2025 financial year onwards, there will also be an 18% increase in dividends, for a total of about €1.1 billion.

The acquisition, that will be paid in cash financed through new debt, will help create about €600 million in savings, and it will focus on merging Vodafone Italy with Fastweb, Swisscom’s Italian subsidiary.

Swisscom CEO Christoph Aeschlimann expects the deal to “generate high added value for all stakeholders,” with both “private and business customers benefiting.”

According to Liana Logiurato, a Board adviser on over $100bn M&A and $20bn capital raisings with UBS, Nomura and Syngenta, who coincidentally was advisor on the IPO of Swisscom in 1998. “Swisscom acquires a prime property and creates the largest Fiber-To-The-Home provider in Italy, bringing together leading mobile services player Vodafone Italy with the strengths of fixed services provider Fastweb,” she notes.

The new entity will be Italy’s second-largest broadband operator and further stir up competition in an already fierce market.

The biggest Italian operator, Telecom Italia, is currently in the process of selling its long-disputed fixed line grid to US fund KKR, in a blockbuster €22 billion deal. Given the stiff competition, two other leading mobile carriers in the country, Hong Kong-owned Wind-Tre and France’s Iliad, are also looking for possible deals. Iliad recently also eyed Vodafone Italy, but Swisscom prevailed.

The proposed merger will now have to be reviewed by the Italian antitrust regulator.

Reddit counts about 100,000 communities, with 76 million daily visitors. In an unusual move, the company—which describes itself as a combination of social media and search engine—invited 75,000 of its power-users to buy shares at the IPO.

Founded in 2005 by entrepreneur Alexis Ohanian and current CEO Steve Huffman, Reddit quietly filed for a public offering with the US Securities and Exchange Commission (SEC) in late 2021. It was then valued at $10 billion.

IPO plans are no longer stalled.

San Francisco-based Reddit is now offering about 10% of its shares, with a $5 billion valuation. In 2023, it reported $804 million revenues and a net loss of $90.8 million.

“Reddit is the latest in a series of potential IPOs, showing the market may pick up in 2024 after a lacklustre last two years,” says Mergermarket managing editor Erica Teichert. “But investors still have some trepidation at proposed valuations, as some recent IPOs have ended up priced below their initial plans, up to a 15%-20% discount.”

Per Dealogic, there were 148 US IPOs in 2023—far fewer than 2021’s 1,010 US public offerings (3,074 worldwide).

Even in this slow market, not everyone is hyped for Reddit.

“Certainly, the fact that the IPO window is open at all is a good sign,” noted Spencer Greene, General Partner at venture capital TSVC, the first institutional investor in video-call platform Zoom Technologies. “But I don’t think Reddit is a meaningful bellwether because it’s such a unique business—a company that’s been making losses for nearly 20 years, that’s delivering reasonable revenue growth but nothing earth-shattering. Folks will want to read a lot into what happens to Reddit stock, but I’d be very cautious.” Reddit’s largest stakeholders include Condé Nast owner Advance Publications, Chinese tech conglomerate Tencent, and OpenAI CEO Sam Altman, who invested at least $60 million in Reddit shares, and controls 9.2% of its voting power.          

After a lengthy wait, the milestone approval of 11 spot bitcoin ETFs by the US Securities and Exchange Commission (SEC) surprised some operators, but for longtime digital asset investors, it was well overdue.

Bitcoin, launched in 2009 as the first cryptocurrency, has been considered excessively risky and volatile for years. The believers in the power of cryptocurrency fought to see this moment.

The day of reckoning for the SEC came in August 2023, when the world’s largest digital currency asset manager, Grayscale, won a crucial court battle in a bitcoin lawsuit against the US regulator.

Weeks earlier, financial giant BlackRock entered the crypto sphere by boldly filing for a spot bitcoin ETF, thus paving the way for other major players to follow suit, such as Invesco, Fidelity and Franklin Templeton.

After the debut of multiple ETFs last month, BlackRock and Fidelity quickly topped the chart with over $1 billion in inflows within days. Other firms are moving more slowly but are equally confident: Bitcoin offerings are “a very exciting addition to our product lineup,” says Patrick O’Connor, head of Global ETFs at Franklin Templeton in a statement on January 11th. “With our bench strength in digital assets, as well as our experience in offering a wide array of ETFs, we are well equipped to expand into the new frontier of digital-asset ETFs.”

In the first week of trading, bitcoin ETFs became the second-largest ETF commodity in the US in terms of AUM, swiftly overshadowing silver.

Some of the bitcoin ETF pioneers are now looking at the next challenge. Grayscale and BlackRock are working on approval for spot Ether ETFs, expected by the end of May. Across the globe, the excitement surrounding the SEC’s watershed ruling has been contagious, with Asia also warming up to the idea. Bitcoin ETFs are expected to launch in Hong Kong by March. South Korea and Indonesia are also rumored to be exploring the option.            

After months of negotiations, the Tokyo-based company managed to secure an all-cash deal that values the historic US manufacturer at $55 a share.

The offer features a premium of over 140% compared to the one launched in August last year by US Steel’s domestic competitor Cleveland-Cliffs, whose $35-per-share offer, in cash-and-stock, was promptly rejected.

Since then, the famed American steel producer received declarations of interest by both multinational corporation ArcelorMittal, and the largest US steel-maker Nucor.

Nippon’s offer proved to be the most appealing, both for the financial return and the synergies, such as the matching expertise in manufacturing operations.

The acquisition, predicted to close in summer this year, signals the end of an era for century-old US Steel, founded in 1901 by tycoons Andrew Carnegie, J.P. Morgan and Charles Schwab.

The company quickly rose to be the largest in the world and became a symbol of American power across the globe. It reached the height of its fame and capacity around mid-century, with 340,000 employees and 36 million tons of steel produced.

In the following decades, with the emergence of cheap manufacturing labor worldwide, the decline began. With it, the US supremacy in the sector also started to fade.

Today, the US ranks fourth in the world as a steel producer, after China, India and Japan. Beijing is the undisputed leader, accounting for 54% of global steel output.

This merger represents a victory for Japan, which could now strengthen its position and better respond to the growing global demand for steel.

However, fierce opposition could complicate matters: US Steel unions are resisting the sale of a piece of American history to a foreign-owned company. Congressmen have also vowed to stop the transaction.

Nippon Steel, which has been present in the US for 40 years, pledged that all union demands will be honored. It also confirmed that US Steel will retain its historic name and headquarters in Pittsburgh. Yet, doubts remain, and the fight to keep a jewel in America’s crown on its native soil has only just begun.

The agreement between the automotive firm and the unions is the first of its kind in Europe. It includes a 50% increase in bonuses, a hike in annual wages and a one-off bonus of €1,000 (about $1,080). The deal will also add 500 new jobs and additional benefits.

Lamborghini, owned by Germany’s Volkswagen through its subsidiary Audi, is poised to drive change in the European car industry, with other automakers expected to follow suit.

In the US, some manufacturing plants have had a shorter workweek for years. The truncated work week is credited with providing a better work/life balance, thus increasing productivity, job retention and employee overall health while limiting sick days.

However, longer workdays weigh on output quality and potentially pave the way to burnout and exhaustion. Employees receive 100% pay if they achieve 100% of their productivity targets.

“We have had this arrangement for about two decades, and it’s well-received,” says Jason Vance, operations project manager at Malibu Boats. “It improves production and scheduling flexibility, and it’s a great tool to recruit new people. Once tried, nobody wants to go back to a five-day week. But working in a plant is taxing, so we give workers incentives and longer breaks. They recently voted overwhelmingly in favor of the four-day rota.” 

The trend is worldwide as more companies test an abbreviated workweek. In Europe, countries like the UK, Spain, Portugal, the Netherlands, Belgium and Iceland have implemented the model. Other countries exploring the change include Canada, Japan, New Zealand, Australia and South Africa.

Several major global companies have already (partially) tested the waters with a shortened workweek: Amazon, Microsoft, Panasonic, Samsung, Toshiba and Telefonica. The UK Civil Service is also on board.

A few large firms are leading the change in Italy, where Lamborghini is based. Defense conglomerate Leonardo introduced the novelty last year, as did eyewear luxury giant Essilor-Luxottica and world-famous coffee brand Lavazza. Italy’s largest bank, Intesa Sanpaolo, started the trial in January 2023. Over 50% of its workforce embraced the initiative.

The breach, directed at the bank’s US financial services unit, temporarily disrupted US Treasury markets, with clients unable to place trades. The impact was ultimately contained, but concerns are mounting about the vulnerability of leading banks and other corporations and the need for higher cybersecurity controls worldwide.

LockBit, a Russian-linked criminal group that made headlines recently for its ability to infiltrate systems and steal valuable data, was identified as ICBC’s attacker. In 2023 alone, LockBit targeted large companies such as Boeing, Royal Mail UK and financial software firm ION Group, among others.

Some companies that can’t recover their systems from backups end up paying the ransom, as did ICBC.

Many fear this will empower the hackers. According to the US Department of Justice, since 2020, “Lockbit actors have executed over 1,400 attacks against victims around the world, issuing over $100 million in ransom demands.” They received “tens of millions of dollars in ransom payments in the form of bitcoin,” which are relatively difficult to trace.

The most common source of cyber breaches is due to human error, such as with phishing attacks, according to Mario Henrique Viegas, a 25-year IT veteran of large corporations such as NBC Universal, Michael Page and Harrods, and now IT manager at Acamar Films.

“Employees with authorized access to systems may, intentionally or unintentionally, cause breaches by mishandling data or sharing sensitive information,” he explains. “A multilayered approach to cybersecurity might help mitigate the risks: employee training, strong access controls, regular software updates and robust security measures. But with the cybersecurity landscape constantly evolving, stronger regulatory scrutiny might soon
be necessary.” New threats and avenues of attack emerge regularly. And with the advent and rollout of artificial intelligence (AI), the potential for more sophisticated AI-driven ransomware could become an even more alarming threat.

These eVTOLs—Electric Vertical Take-off and Landing aircraft—are battery-powered drones that could carry about two to four people, or 500–600 pounds, for short trips.

They look like helicopters, minus a pilot and a roaring engine, and can take off vertically from the middle of cities and fly for approximately 25 minutes at 62 mph. EHang plans to produce 120 vehicles within five years, with international pre-orders exceeding 1,200 units.

The concept of unmanned aircraft flight has been in the pipeline for about a hundred years—Henry Ford created a public transportation flying car in 1926. However, production never took off because of a test flight fatality.

The idea returned at the beginning of this century, with the effort intensifying in the past decade. “China was able to launch the first proper certification thanks to its leadership in the lithium-ion battery production, with 70% of the global share, but there is fierce competition coming from Europe and USA,” says Stefano Aversa, Managing Director and Vice Chairman at AlixPartners. “In the US, there are already trials to debut flying taxis in NYC, Los Angeles and San Francisco, while overseas main markets will initially be London, Paris and Monte Carlo. Besides the strict safety requirements, the main challenges for eVTOLs are regulation and acoustic pollution,” concludes Aversa.

With the market for air taxis expected to be worth tens of billions of dollars, several companies worldwide are also developing unmanned multi-copter aircraft. From large aviation firms like Airbus and Boeing to relatively new names like Beta Technologies, Blade Air Mobility, Joby Aviation, Archer Aviation in the US—and Vertical Aerospace, Lilium and Volocopter in Europe, many of whom have already gone public. The US Federal Aviation Administration’s first test approval could be as early as 2024.

Last month, after news spread that the Chinese government banned the use of iPhones by central government agencies, the Cupertino, California-based company wiped out $200 billion in market value in two days.

The biggest corporate giant in the world, with a market capitalization of $2.7 trillion, Apple relies on China for about one-fifth of its total revenue. Although the firm’s presence in the country is well established, with every iPhone user owning an average of 2.5 Apple devices, a long-term impact might be problematic.

Fresh competition is emerging, with China’s largest smartphone maker, Huawei, launching its new premium mobile phone just days before Apple unveiled its latest iPhone 15 in mid-September.

“We see low risk of significant revenue loss or a full-blown ban in China from these moves, as Apple has a good relationship with the government,” explains Angelo Zino, senior technology equity analyst at CFRA. “A bigger concern for us is potentially Huawei making a comeback at the high end of the market, given recent technology breakthroughs, increasing competitive pressures and potentially causing Apple to give back some share over time.”

CFRA estimates Apple has about two-thirds of the share within the top-end China smartphone market. Huawei is looking to take a bite of that back. The Chinese giant, once the largest mobile phone manufacturer in the world by sales, took a big hit after an almost-total ban by the US government in 2019. The restrictions, which also denied Huawei access to semiconductors to build cellphones and 5G infrastructure, diminished Huawei’s presence worldwide, and its market share in China dove from 27% in 2020 to 11% so far in 2023. Apple was a big gainer, seeing its market rise from 11% to 19%.

The tables might now turn. Huawei’s latest top-tier models, the Mate 60 series, support satellite communications and boast comparable specifications to the newest iPhones. Analysts expect it to sell 12 million devices in the next year. 

Some strategists now fear that the honeymoon with China—the world’s largest smartphone market—might be over for Apple, while the decades-old technological power battle between Beijing and Washington continues.           

Some of the worst effects of climate change are expected to hit developing countries—precisely the ones least able to afford the cost of mitigation and adaptation. A 2021 United Nations report estimates annual adaptation costs in the developing world at $70 billion, quadrupling to $280 billion to $500 billion by 2050.

The World Bank is marshaling some of the private sector’s heaviest hitters to address the problem. Last month, it announced formation of the Private Sector Investment Lab, which is charged with finding solutions that overcome barriers to private-sector investment in emerging markets. The lab will be made up of 15 CEOs and chairs from some of the largest financial institutions, including BlackRock, HSBC, AXA and Temasek.

The World Bank is betting that the executives’ expertise will help it expand its work beyond traditional development projects in emerging markets, to address climate change along with pandemics, poverty and social and political fragility.

Leading the effort will be Shriti Vadera, chair of Prudential plc, and Mark Carney, UN special envoy on climate action and finance, and former governor of the Bank of England.

“It’s encouraging to see that the World Bank wants to make an extra effort to fight climate change by implementing a private-sector led initiative,” says Brunello Rosa, CEO and head of research at UK research firm Rosa & Roubini Associates. “Promoting relevant goals such as poverty reduction, increase of potential growth and ecological transition is of paramount importance. The CEOs will ensure that capital will be allocated efficiently for the achievement of these goals, and the fact that Mark Carney will lead this effort adds further credibility to the project, considering his credentials on this issue.”

The Private Sector Investment Lab will report directly to the new World Bank President Ajay Banga, who took office in June after a decade as CEO and president of Mastercard. The “surest way to drive a nail into the coffin of poverty,” Banga said in a statement, is to unlock investments “that will deliver jobs and better quality of life” for the developing countries. “The Private Investment Lab has the potential to do that.”