😢Europe's Worst Storm Disasters

☀️Good morning. It's Friday, Nov. 1, and we're covering, Apple Reports Strong iPhone Sales But Cautious Revenue Outlook Raises Concerns, OpenAI Launches ChatGPT Search, Aiming To Transform Online Search, White House Altered Transcript Of Biden’s Remarks, Drawing Bipartisan Criticism, and much more. First time reading? Sign up to get this newsletter: Sign up here. 

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MARKETS

Cryptocurrency Prices by Market Cap

• The global cryptocurrency market cap today is $2.33 Trillion, a 4.01% decrease in the last 24 hours.

• The total crypto market volume over the last 24 hours is $92.72B, which makes a 6.12% increase.

• The total volume in Defi is currently $4.04B, 4.36% of the total crypto market 24-hours.

• The volume of all stablecoins is now $86.6B, which is 93.40% of the total market 24-hour volume.

• Bitcoin’s dominance is currently 58.81%, a decrease of 0.08% over the day.

Tether Reports $2.5 Billion Profit In Q3 2024

Tether, the issuer of the USDT stablecoin, announced a net profit of $2.5 billion for the third quarter of 2024, bringing its year-to-date profits to $7.7 billion. This financial success is attributed to $1.3 billion in yields from U.S. Treasury holdings and $1.1 billion from the appreciation of gold, which rose by 15% during the quarter. As of September 30, Tether reported $125.5 billion in assets against $119.4 billion in liabilities, indicating over $6 billion in excess reserves. The company's asset composition includes $84.5 billion in U.S. Treasury bills and $5 billion in gold. (Read Deeper)

BUSINESS & FINANCE

Apple Reports Strong iPhone Sales But Cautious Revenue Outlook Raises Concerns

Apple’s latest quarterly report shows strong initial sales for its AI-enhanced iPhone 16, beating profit expectations with $94.93 billion in sales, slightly ahead of Wall Street estimates of $94.58 billion. The company reported earnings of $1.64 per share, excluding a large one-time EU tax charge, but the revenue outlook of low-to-mid single-digit growth for the holiday quarter dampened investor enthusiasm, causing shares to dip 1.4% in after-hours trading.

Takeaway: While iPhone sales grew 5.5%, with $46.22 billion in revenue exceeding expectations, sales in other product lines, including Mac, iPad, and wearables like AirPods and Apple Watch, fell short. China’s decline in iPhone sales and the limited availability of Apple’s new AI features in the region have raised concerns about potential revenue challenges there. Chief Financial Officer Luca Maestri highlighted the services segment, including iCloud and Apple Music, which is expected to grow in the double digits. (Read Deeper)

Cathie Wood Invests $25.9 Million In Meta Platforms

Cathie Wood, CEO of Ark Investment Management, has purchased 43,833 shares of Meta Platforms (META) for approximately $25.9 million during the recent earnings season, reflecting her strategy to adjust positions based on earnings reports. While Wood garnered significant attention for a 153% return in 2020, her long-term performance has been inconsistent. The Ark Innovation ETF (ARKK), which manages $5.8 billion in assets, has posted a -7.91% return year-to-date and a -26% return over three years, lagging behind the S&P 500, which is up 23% in 2024.

Takeaway: Wood focuses on disruptive innovation in sectors like AI, genomics, and blockchain, aiming for long-term gains despite short-term volatility. Critics, including Morningstar analyst Robby Greengold, highlight the ETF's inconsistent performance and lack of forecasting skills. Despite challenges, Wood asserts that many of Ark's holdings are now undervalued. However, the Ark Innovation ETF has seen $2.41 billion in net outflows over the past year. (Read Deeper)

TECHNOLOGY & SCIENCE

OpenAI Launches ChatGPT Search, Aiming To Transform Online Search

OpenAI has launched a search feature within ChatGPT called "ChatGPT search," which positions the company to directly compete with search engines like Google and Microsoft's Bing. This new feature lets users get real-time information on sports, stocks, news, and weather via a conversational interface and includes sources from major news providers. OpenAI beta-tested it as SearchGPT in July and has since incorporated user feedback. ChatGPT search will gradually roll out to all ChatGPT users.

Why It Matters: The launch of ChatGPT search is significant because it represents a major step in AI’s expansion into the search engine industry, where Google has dominated for decades. By offering real-time information in a conversational format, OpenAI is positioning itself as a serious competitor to Google, Perplexity, and Microsoft’s Bing. This shift could reshape how users search for information online, prioritizing context-rich, interactive results over traditional, list-based search results. ( Read Deeper )

Boeing Union Endorses New Proposal To Resolve Ongoing Strike

Boeing Co. and the International Association of Machinists and Aerospace Workers (IAM) have reached a tentative agreement to end a strike involving 33,000 workers that has significantly disrupted the company's commercial airplane manufacturing. The new proposal includes a 38% wage increase over four years and a $12,000 signing bonus if approved. The IAM District 751 has recommended that members accept the offer and hold a vote on November 4, cautioning that further strikes could jeopardize the gains achieved during negotiations.

Takeaway: The ongoing strike, which began on September 13, has caused an estimated $9.66 billion in economic losses, affecting suppliers and the wider economy. Although the latest agreement does not restore pension plans, it aims to help workers recover from previous wage stagnation. The union highlighted the importance of locking in the proposed improvements to wages and benefits as they move forward with the vote. (Read Deeper)

AROUND DE WORLD & POLITICS

Spain Flood Death Number Rises To 158 Lives

The death toll from severe flash floods in eastern Spain has risen to 158, with dozens still missing. In just eight hours, the Valencia region was hit by a year’s worth of rain, causing widespread devastation and making this Spain's deadliest flood-related disaster on record. Towns like Utiel suffered heavily, with rivers overflowing and many elderly or disabled residents unable to escape. Damaged infrastructure, including roads and railways, will take weeks to repair.

Takeaway: The tragedy is now Spain’s worst flood-related disaster on record. Experts attribute the frequency of such extreme weather events to climate change. A similar catastrophic flood event in Germany in 2021 claimed 185 lives, while floods in Portugal in 1967 caused nearly 500 fatalities. Prime Minister Pedro Sanchez urged people to stay home due to the risk of further storms. (Read Deeper)

White House Altered Transcript Of Biden’s Remarks, Drawing Bipartisan Criticism

The White House has come under scrutiny for altering the official transcript of President Joe Biden's remarks during a call with Latino activists, where he criticized supporters of Donald Trump. Initially, Biden stated, "The only garbage I see floating out there is his supporters," but the released transcript changed “supporters” to “supporters,” suggesting he was addressing Trump rather than his followers. This edit, made after consultation with Biden, raised concerns among White House stenographers about protocol violations and the integrity of official records.

Takeaway: The incident gained attention following Biden's comments, which were made in response to derogatory remarks about Puerto Rico by comedian Tony Hinchcliffe at a Trump rally. As Biden's comments stirred controversy, the Trump campaign used them to their advantage, and Vice President Kamala Harris distanced herself from his remarks, emphasizing the need to respect differing political views. (Read Deeper)

ENTERTAINMENT & SPORTS

Young Thug Released From Jail After Guilty Plea In Long-Running Gang Case

Young Thug, the Grammy-winning rapper, was released from jail after pleading guilty to gang, drug, and gun charges, ending the longest criminal trial in Georgia’s history. The 33-year-old, legally known as Jeffery Lamar Williams, served over 900 days since his 2022 arrest, when prosecutors alleged his label, YSL Records, was a front for an organized crime group. Although prosecutors aimed for a 45-year sentence, the judge sentenced him to time served and 15 years of probation. The trial, which attracted controversy over the use of rap lyrics as evidence, faced numerous delays and incidents, including a judge recusal motion and courtroom disruptions. ( Read Deeper )

First Trailer For Squid Game Season 2 Released

The first trailer for Squid Game Season 2 has been released, featuring Player 456, Seong Gi-hun, played by Lee Jung-jae, who returns three years after his victory in the deadly competition. Gi-hun is now tasked with leading a new group of competitors through the brutal games. The trailer opens with masked guards and revisits the iconic game of Red Light Green Light, where players must advance without moving when the doll turns around. Gi-hun attempts to guide the new players but faces chaos when one player is shot for moving. (Read Deeper)

PODCAST(WHAT WE ARE LISTENING TO)

• Perplexity AI, led by CEO Aravind Srinivas, is pioneering a new era in web interaction by developing an AI-powered search engine that delivers conversational answers, challenging traditional search paradigms. (Listen)

EXTRA BREVITI

• Indonesia has banned the sale of Google Pixel smartphones, citing a failure to comply with regulations that require at least 40% of the components in phones sold domestically to be locally manufactured. (Read More)

• Chinese researchers affiliated with the People’s Liberation Army (PLA) have utilized Meta's publicly available Llama AI model to create a new AI tool, named "ChatBIT," for potential military applications. (Read More)

• Meta is collaborating with sensor technology firm GelSight and South Korean robotics company Wonik Robotics to create a new generation of tactile sensors designed for artificial intelligence research. (Read More)