| 1 | | JPMorgan Chase is creating a software program called IndexGPT to analyze securities using cloud computing and artificial intelligence. The business is the first financial institution to announce a GPT-like product that's targeted directly to customers. More: - The application outlines the usage of Generative Pre-trained Transformer (GPT) models, comparable to ChatGPT, to power AI.
- Financial advisors worry about the market impact of AI technology taking over their position.
- With 1,500 data scientists and machine-learning experts, JPMorgan is evaluating several GPT use cases.
- Large language models like GPT offer opportunity and power, and JPMorgan executives are keen to investigate their potential worth.
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| 2 | | 
What happened: According to Dave Calhoun, CEO of Boeing, environmentally-friendly biofuels will never be as expensive as conventional jet fuel. Sustainable aviation fuels (SAF), produced from plant and food waste, are a means to reduce the carbon footprint of flying. However, SAF costs at least twice as much as jet fuel and accounts for fewer than 1% of all aircraft usage. Why it matters: The CEO of Boeing's remarks raise questions about the affordability and viability of decarbonizing the aviation sector. SAF is a crucial component (65%) of the aviation industry's plan to cut emissions and reach net-zero targets. Infrastructure adaption and significant investments would be needed to switch to SAF. Where to see the impact: The aviation sector aims to reach net-zero emissions and boost the use of sustainable aviation fuels, but decarbonizing air travel will continue to be difficult due to the cost implications for airlines and customers. To cut expenses and pollution, other methods are now being investigated. | | | |
| 3 | | Atmus Filtration Technologies, a Cummins Inc. subsidiary, raised $275M in its initial public offering (IPO) for $19.50 per share, completing the day with a market value of $1.8B (11% Rise). The business is well-known for its Fleetguard products, which include filters for commercial vehicles and associated machinery. More: - The corporation, which operates in 150 countries, derived 51% of its net sales from the U.S. and Canada in 2022.
- In 2021, Atmus's net sales increased during the previous three years to $1.56B, with a net profit of $170M.
- Atmus is still under the control of Cummins, which holds 83% of the company's shares.
- The IPO was led by Goldman Sachs and JPMorgan and featured a debt-for-equity swap with the banks instead of a cash sale by Cummins.
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| 4 | | The NBA is negotiating its upcoming media contracts for over $5B a year, with many outlets looking to challenge the exclusive rights held now by Disney and Warner Bros. Discovery. Potential bidders like Amazon, Comcast/NBCUniversal, Apple, Fox, and Netflix all aim to make bids once the exclusive bidding window ends next spring. More: - The league seeks to show more games on free broadcast stations such as ABC, NBC, Fox, and CBS.
- Streaming services will play a big part, with the league mulling a hybrid strategy of broadcast, cable, and streaming possibilities.
- Due to its current partnership with the NBA and its portfolio of services (ABC, ESPN, ESPN+), Disney is favored to retain the rights.
- Warner Bros. Discovery has a tight relationship with the NBA through TNT and online outlets like Bleacher Report.
- There have been varied levels of interest from Amazon, Apple, Comcast/NBCUniversal, Fox, and Netflix, with Amazon and Apple being seen as the front-runners.
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| 5 | | The number of Americans taking the CPA exam has decreased to its lowest level in 17 years, worsening the lack of skilled accountants. A 5% decrease in applicants for the Institute of Management Accountants' alternative certification for corporate finance responsibilities in the U.S. has also been observed. More: - Higher beginning pay in the banking or technology sectors, a lack of interest in accounting courses at universities, and the time and expense needed to earn a CPA certification all contributed to the fall.
- The AICPA anticipates a 10% overall rise in new applicants in 2023, which future exam improvements will aid, but the numbers will still be 20% fewer than the average of the preceding ten years.
- To entice young talent, accounting companies are recommended to update their business models, enhance prospects for professional advancement, give competitive compensation, and offer more alluring incentives.
- To make the profession more appealing to younger generations, efforts to solve the shortage include encouraging businesses to offer more significant salaries and boosting scholarships.
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| 6 | | As concerns about a U.S. debt default and recession have escalated, hedge funds and asset managers have raised their short bets relating to the S&P 500. Nevertheless, the S&P 500 has grown by 8% and is now at an eight-month high. More: - According to Société Générale, the large number of short positions is a warning flag that is "too strong to ignore."
- Many managers are concerned about U.S. equity valuations and the possibility of the Federal Reserve raising interest rates quickly.
- Near historical highs, the price-to-forward-earnings multiple for the S&P 500 is currently 18.7 times.
- Later in the year, several market participants predict stock market issues, mainly if interest rates stay higher than anticipated.
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| 7 | | Quick Hits: - Demo Divvy + get a $100 Amazon gift card. Divvy, BILL's spend and expense management solution, is one of the easiest and most efficient ways to manage your company spending.*
- ALD's recent $5.14B acquisition of rival LeasePlan reflects its bet on scale to stay competitive in the face of rate hikes.
- ISS has urged Toyota Motor Corp's shareholders to vote in favor of greater disclosure related to climate change lobbying and noted that three of the company's outside director nominees are not independent.
- Naver, a South Korean tech company, is deploying AI models in foreign governments which are localized with political and cultural sensitivity and comply with US data regulations.
- Kotak Investment Advisors, India's largest homegrown alternative investment manager, is seeking to invest additionally in private credit as private capital and pension funds increasingly invest in the growing economy.
- AI investments:: Harness the power of a technology expected to add $15.7 trillion to the global economy by 2030.*
*This a sponsored listing. | | | |
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Term of the Day World Trade Organization (WTO): The World Trade Organization's main purpose is to ensure that trade flows as smoothly, predictably, and freely as possible. Question of the Week Should companies take steps to avoid employee burnout, or should it be the individual's responsibility to manage it themselves? Join the conversation |
INSIDE BUSINESS LEADERBOARD (7 DAYS) |
 | Freelance Writer | | Shriram is pursuing Master’s in Business with Marketing at Warwick Business School. He worked as a Senior Consultant in Tech and Political Consultancies before his Masters. He is passionate about Tech, Marketing, Strategy, Anthropology and Politics. He is also the Postgraduate Ambassador for Warwick Business School. | | This newsletter was edited by Christopher Hachey | |
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