AI rules in the eyes of governments
President Biden is set to issue an executive order on artificial intelligence on Monday, in his first attempt to regulate how US companies develop it and how regulators oversee the technology. The order will set standards for American companies and public agencies.
Its release aims to establish the US as the global leader in regulating the fast-growing technology, coming just days before the British government is due to host an international summit on AI safety.
Biden will implement the Defense Production Act, Which allows the President to organize American industry to support the national defense. The order will require companies developing AI to notify the government when training their systems that “pose a serious threat to national security, national economic security, or national public health and safety”.
The most advanced AI products would have to be tested to ensure that they cannot be used to create biological or nuclear weapons, and the findings should be shared with the government. The order will recommend that content created by AI systems will need to be labeled to reduce the spread of “deep fakes” or disinformation, a major concern ahead of next year’s elections.
Federal agencies will also be urged to increase enforcement. The White House will ask the FTC to expand its role as a watchdog over consumer protection and antitrust violations. FTC Chairwoman Lina Khan has signaled that she will aggressively pursue regulation of AI
Technical representatives welcomed the move. Linda Moore, CEO of industry group TechNet, told DealBook that the Biden administration was “providing a really good foundation for AI policy,” especially as Congress is deadlocked amid a leadership void in the House.
There is a global struggle to control AI The EU wants to pass rules for the technology by the end of the year. Meanwhile, the Group of 7 countries are set to develop a code of conduct for AI companies, and China introduced its own regulatory framework earlier this month. Some AI officials want a global governance arrangement along the lines of the Intergovernmental Panel on Climate Change.
The UK event will be the first major meeting of world leaders and technology executives. Of those willing to participate hastily arranged meeting Vice President Kamala Harris and executives from Microsoft, Google, OpenAI and Meta. A Chinese government delegation and representatives of Chinese tech groups are also reportedly coming. Western officials became angry,
What’s going on over here
Speaker Mike Johnson says avoiding a government shutdown is a priority. The top House Republican said yesterday he is committed to passing federal funding bills, a top fear is being addressed in Washington as the Nov. 17 deadline approaches. This could include another stopgap measure before a series of appropriations proposals.
Mike Pence ends his presidential campaign. The former vice president resigned after bowing to reality — including persistently low polling numbers, slow fundraising and his association with Donald Trump. Among the Republican presidential contenders, Nikki Haley is benefiting While Ron DeSantis continues to struggle in the early battleground states.
Nelson Peltz reportedly gets backing for potential new challenge at Disney. Active investors have Ike Perlmutter’s financial support, according to the Wall Street Journal. Perlmutter is the former CEO of Marvel and one of Disney’s largest individual shareholders. Peltz’s Trian stake is now said to be worth $2.5 billion, four times more than in his first attempt to shake up Disney last year, as he seeks control of multiple seats on the company’s board.
Traders are becoming more willing to trade with Russian metals. Western companies including Citigroup and Trafigura are making new deals For commodities like aluminum, despite the war in Ukraine, according to Bloomberg. There are no restrictions on trade in Russian metal, but many companies are wary of doing new business with materials coming from there.
Is strike season about to end?
The UAW’s history-making strike against the Big Three Detroit automakers is now down to one, after the union announced a preliminary agreement with Stellantis on Saturday. Only General Motors remains and there are indications that a deal is close.
Elsewhere, Hollywood studios are hoping the actors’ strike is also nearing an end.
The Stellantis agreement largely mirrors the agreement reached with Ford last week, Which includes 25 percent salary increase in the next four years and improvement in pension and working conditions. Stellantis, which owns Chrysler and Jeep, also agreed to reopen a factory in Illinois.
Ford provided more details yesterday about its agreement with the UAW, which also includes an agreement to invest $8.1 billion — including potential battery and electric vehicle plants in Michigan and Tennessee — that could eventually be included in the labor agreement. Is.
A deal with GM may be close Given that the talks have intensified in recent times. But by ordering another walkout at a GM plant this past weekend, the union is again using its new tactic of exerting last-minute pressure to ensure that it gets, in the words of its president, Shawn Fein. , “Every penny possible.”
A resolution would come as a relief to GM, which told analysts last week that the strike was costing the automaker $200 million a week.
What will happen next: The UAW is likely to renew efforts to organize workers at non-union shops like Toyota and Tesla. Previous efforts have failed, but the union hopes workers can be swayed by the terms it won from Detroit car makers.
To some extent, Ford, GM and Stellantis may be hoping that the UAW will succeed in efforts to unionize rival plants: Their executives have warned that the new contracts will impose higher costs as the Big Three accelerate their transition to electric vehicles. , which is expensive compared to their competitors. Don’t face the present.
Progress is also expected on another labor strike: According to The Times, Hollywood executives believe they are close to an agreement with the SAG-AFTRA actors union. But there are still unresolved issues, including payments from streaming.
The pressure to reach an agreement is increasing. The studio stated that a contract needed to be in place soon, otherwise production would not resume until January. And top stars and out-of-work stage crews are quietly pushing for a solution.
Elon Musk excited about Starlink offer for Gaza
As Israel escalates its campaign in Gaza, including more military incursions into the area, global businesses are being drawn into the conflict, some in unexpected ways.
Elon Musk was criticized for offering Starlink service to aid groups in Gaza. Over the weekend, SpaceX’s CEO said the company would Activate your satellite communications service to “internationally recognized aid organizations” after the Israeli government cut off phone and internet service in Gaza for 34 hours.
It was not clear whether it would have an immediate impact, Musk said, as no Starlink terminals had tried to connect to Gaza and communications service had been restored by Sunday.
But Israel’s communications minister attacked this proposal. Shlomo Karhi said his government would “usehas all the resources at his disposal To fight it” and warned Musk that such an effort would help Hamas. SpaceX chief responded that his company was not “inexperienced” And will also run security checks with US and Israeli authorities “before turning on a single terminal”.
The controversy was a reminder of the growing geopolitical importance of companies run by Musk. Starlink previously received praise for activating its service in Ukraine, despite its involvement in the conflict there. have checked Since the billionaire was concerned about its use in military operations.
coming week
Central banks, jobs and earnings: What to watch this week.
Tomorrow: A big week for data starts with reports on consumer prices and GDP in the Eurozone. The results reported by AMD and Samsung provide insight into global demand for chips.
Wednesday: This is decision day for the Fed. The central bank is expected to leave interest rates untouched, but has signaled it is prepared for further increases if inflation rises.
Thursday: Now it’s the Bank of England’s turn; It is also expected that the rates will remain unchanged. On the earnings front, Apple, Shell and ConocoPhillips report, as do Novo Nordisk and Eli Lilly, whose anti-obesity drugs have taken the market by storm.
Friday: It’s American Jobs Day. Economists estimate employers added 190,000 jobs in October, a sharp decline from September. Special attention will be given to salary data.
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Broadcom and VMware $69 billion merger delayed It was expected to close today, following reports that Chinese regulators could block the deal. The companies did not provide an update on approval in China and said the deal would “close soon.” (Bloomberg)
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The sculptor appears to be ready for capital management Sell Yourself to Rhythm CapitalDan Ochs, founder of Sculptor, a publicly traded hedge fund, agreed to an improved takeover bid of $720 million. (Bloomberg)
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an employee at two sigmaThe $60 billion quantitative-trading hedge fund allegedly adjusted investment models without authorization, leading to some losses and regulatory scrutiny. (WSJ)
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