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BMW says they’re ‘not worried’ about global chip shortage

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With many of us stocking on on gadgets and games during COVID lockdowns, BMW is now facing a shortage of semiconductor chips

The COVID pandemic has added another unlikely victim to its list as BMW faces a shortage of semiconductor chips.

Experts think the shortage is due to the increased supply for video games and gadgets during global coronavirus lockdowns.

“We cannot assume that we will emerge from the second quarter unscathed,” Chief Executive Officer Oliver Zipse said.

BMW “aren’t worried”

Despite the troubled time, BMW says they “aren’t worried” about the chip shortage.

The German carmaker remains on course to meet its profit targets for 2021 despite emerging challenges for the automotive industry. The past year has also seen the cost of raw materials rising.

Zipse also said he did not expect the shortage to have a major impact on production. BMW will respond by prioritising the production of cars with higher profit margins.

BMW forced to halt production

The shortages in chips have resulted in many assembly plants being forced to halt production.

This has driven down the supply of chips – as a result seeing increased prices for both new and used vehicles.

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U.S. jobs report, Fed decisions, and Japan’s economic risks explained

January US jobs report sparks uncertainty; analysts debate impact on Federal Reserve policy and market confidence.

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January US jobs report sparks uncertainty; analysts debate impact on Federal Reserve policy and market confidence.


The January US jobs report shows a mixed picture for the economy, with payroll revisions and steady unemployment leaving analysts questioning the impact on Federal Reserve policy. We break down what the numbers mean for interest rates and market confidence.

US stock markets could face turbulence as investors digest the latest jobs data. David Scutt from StoneX explains how these figures may influence equities and what the outlook is for global markets.

Meanwhile, developments in Japan and a strengthening yen could spark new macroeconomic risks. From carry trades to unexpected shocks, we explore how these factors ripple across the global economy.

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#USJobsReport #FederalReserve #StockMarket #MacroRisks #JapanEconomy #GlobalMarkets #CurrencyTrading #EconomicUpdate


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Alphabet launches $20B bond to fund AI expansion

Alphabet’s $20B bond offering highlights investor confidence in AI growth, enabling funding without shareholder dilution.

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Alphabet’s $20B bond offering highlights investor confidence in AI growth, enabling funding without shareholder dilution.


Alphabet has launched a record $20 billion bond offering to finance its massive AI infrastructure build-out, signalling strong investor confidence in the company’s growth strategy. The oversubscribed sale shows that investors are betting on Alphabet’s AI potential and long-term returns.

By using debt instead of equity, Alphabet can raise funds without diluting shareholders. The money will support AI research, advanced computing, and other strategic projects, cementing the company’s leadership in the sector.

Brad Gastwirth from Circular Technologies explains how corporate debt is reshaping tech financing and how investors perceive AI-linked bonds. This record issuance could set a trend for other tech companies looking to fund innovation.

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AI tax tool sparks market turmoil for financial firms

Major financial firms’ stocks fell sharply after an AI tax tool launch, raising investor fears of disruption in advisory services.

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Major financial firms’ stocks fell sharply after an AI tax tool launch, raising investor fears of disruption in advisory services.

Shares of major financial services firms tumbled after the launch of a new AI-powered tax planning tool. LPL Financial dropped nearly 11%, while Charles Schwab and Raymond James Financial fell more than 9%, signalling investor concern over AI disrupting traditional advisory services.

Morgan Stanley also saw a 4% decline as fears grow that AI could replace some of the most profitable offerings of established firms. Earlier this year, the introduction of other AI models already caused turbulence in software stocks, suggesting this could be a broader trend affecting multiple sectors.

The iShares U.S. Broker-Dealers and Securities ETF was down 4% on Tuesday, reflecting the market-wide uncertainty surrounding AI adoption in finance. Investors are closely watching whether AI will complement or cannibalise the industry’s core services.

#AIImpact #WallStreet #FinancialMarkets #InvestingNews #MorganStanley #CharlesSchwab #RaymondJames #FinTech


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