Recent global financial headlines highlight several key developments. The U.S. saw a slight increase in initial jobless claims, yet layoffs remain low. The Department of Labor reported that seasonally adjusted initial claims for unemployment benefits rose to 223,000, slightly below the Dow Jones estimate of 225,000. The four-week moving average increased to 227,000. Continuing claims totaled 1.89 million, up by 33,000 from the previous week.
Apple is undergoing a rare executive reshuffle within its AI department to overcome challenges in Siri's development. CEO Tim Cook has reportedly lost confidence in John Giannandrea's product development capabilities, appointing Mike Rockwell, creator of Vision Pro, to lead the Siri voice assistant. Rockwell will report to software chief Craig Federighi, with Siri moving entirely out of Giannandrea's jurisdiction.
NVIDIA (NVDA, Financial) CEO Jensen Huang announced plans to open a quantum computing research lab in Boston, collaborating with scientists from Harvard and MIT. This announcement was made during NVIDIA's annual software developer conference in San Jose, California, which included a one-day quantum computing event. Huang had previously stated that practical quantum computers are 20 years away but sought to revise this view alongside other industry leaders.
Perplexity AI, supported by NVIDIA, is in talks to raise funds at an $18 billion valuation. The AI startup aims to expand and meet the rising demand for its search tool, similar to ChatGPT and Google's Gemini. The company plans to raise $500 million to $1 billion, doubling its previous valuation of $9 billion, with backing from Amazon founder Jeff Bezos and Japan's SoftBank Group.
Elon Musk announced that Tesla has enhanced security at its stores, activating "Sentry" mode on all vehicles. This follows an FBI investigation into vandalism incidents at Tesla dealerships. U.S. authorities have charged three individuals related to arson at Tesla sales and charging locations. Due to safety concerns, Tesla's participation in the Vancouver International Auto Show was canceled.
UBS is reportedly considering relocating its headquarters to avoid Switzerland's potential $25 billion capital increase requirement. The Swiss government aims to prevent a repeat of the 2023 Credit Suisse crisis by pushing banks to deduct the value of overseas subsidiaries from parent capital. UBS views this as an excessive reaction that could undermine its global competitiveness.
