First Bank Sacks Over 100 Employees For fraud-related cases 😲

Good morning. It's Tuesday, Aug. 6, and we're covering, First Bank Fires Over 100 Employees Following ₦40 Billion Fraud Scandal, U.S. Judge Rules Google Maintains Illegal Monopoly On Search Engine Market, Northern Elders Criticize Tinubu’s Address Amid Attacks On Lagos Protesters, 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 $1.98 Trillion, a 8.86% increase in the last 24 hours.

• The total crypto market volume over the last 24 hours is $173.01B, which makes a 2.17% increase.

• The total volume in Defi is currently $8.87B, 5.13% of the total crypto market 24-hours.

• The volume of all stablecoins is now $161.92B, which is 93.59% of the total market 24-hour volume.

• Bitcoin’s dominance is currently 55.62%, an decrease of 0.66% over the day.

BUSINESS & FINANCE

First Bank Fires Over 100 Employees Following ₦40 Billion Fraud Scandal

First Bank has terminated over 100 employees following the discovery of a ₦40 billion fraud allegedly carried out by Tijani Muiz Adeyinka, a manager in its operations team. Adeyinka used his authorization to divert funds into accounts he controlled over two years. The firings, which occurred in July 2024, affected staff from the bank’s large operations department and included the head of transactions. Employees were accused of failing to detect the fraud sooner.

Takeaway: Adeyinka exploited his position as the final line of authorization to conduct his scheme undetected for an extended period. The discovery of the fraud in March prompted an immediate response from the bank, including indefinite suspensions of several operations team members. As the scandal became public, First Bank intensified its actions. Several employees involved in the case were detained by the Nigerian Police Force (NPF) and required to post bail for their release. The bank has also frozen their personal accounts, though their First Bank accounts remain accessible. (Read Deeper)

Japanese Stocks Soar As Global Markets Rebound

Japanese stocks rebounded significantly on Tuesday, with the Nikkei 225 index rising by up to 10% following a sharp 12% drop on Monday. The initial selloff was caused by the Bank of Japan's second interest rate hike in 17 years, which strengthened the yen and made Japanese exports more expensive. Global markets were also affected by fears of a U.S. economic slowdown, leading to a drops in U.S. stocks on Monday: the Nasdaq fell 3.4%, the S&P 500 decreased by 3%, and the Dow Jones was down 2.6%. European markets saw declines as well, with the CAC-40 in Paris closing 1.4% lower, and the DAX in Frankfurt and the FTSE 100 in the UK each losing about 2%. Asian markets showed recovery signs on Tuesday. South Korea's Kospi index rose nearly 5% after an 8.8% drop on Monday, its worst session since 2008.

Takeaway: Market concerns were fueled by weak U.S. jobs data released on Friday, raising fears of slower economic growth and speculation about potential Federal Reserve interest rate cuts. Additionally, big technology companies, especially those investing heavily in artificial intelligence (AI), are facing valuation pressures. Last week, Intel announced major layoffs and disappointing financial results, and there is speculation that Nvidia might delay its latest product launch. (Read Deeper)

Chinese Firms Stockpile Samsung HBM Chips Ahead Of U.S. Export Curbs

Chinese tech firms, including Huawei and Baidu, are stockpiling high bandwidth memory (HBM) chips from Samsung Electronics in anticipation of new US export restrictions on these semiconductors. This increased buying has made China a customer for Samsung, accounting for about 30% of its HBM revenue in the first half of 2024. The U.S. is set to announce new export controls this month, potentially targeting high-bandwidth memory chips crucial for advanced processors and AI applications. These restrictions are part of broader trade tensions between the U.S. and China, impacting the global semiconductor supply chain.

Why It Matters: Chinese firms are focusing on HBM2E chips, an older model, due to high global demand for the more advanced HBM3E. Chinese companies, including startups like Haawking and tech firms such as Tencent, have been stockpiling these chips, amid concerns that new U.S. regulations could disrupt their access. Domestic efforts in China to produce HBM chips are ongoing but may be affected by the new US rules. Samsung could face a substantial impact from these restrictions, as opposed to its competitors like Micron, which has already halted HBM sales to China, and SK Hynix, which is focusing on advanced chip production. (Read Deeper)

TECHNOLOGY & SCIENCE

U.S. Judge Rules Google Maintains Illegal Monopoly On Search Engine Market

A U.S. judge has ruled that Google maintains an illegal monopoly in the online search market, spending billions of dollars to ensure its dominance as the default search engine on smartphones and browsers. This decision, which marks a victory for federal antitrust enforcers, sets the stage for a potential breakup of Google's parent company, Alphabet, and could reshape the online advertising industry. The ruling found that Google paid $26.3 billion in 2021 alone to maintain its market share. Google plans to appeal the decision, while U.S. officials hailed the ruling as a historic win for competition.

Why It Matters: The Google search case, initiated in 2020 under the Trump administration, is the first major antitrust action since the Microsoft case in the late 1990s. This case is part of a broader effort to challenge the market power of major tech companies, highlighting bipartisan support for antitrust enforcement. The ruling follows similar actions against other tech giants like Meta, Amazon, and Apple. (Read Deeper)

OpenAI Co-Founder Schulman Leaves For Anthropic

John Schulman, a co-founder of OpenAI, has left the company to join the AI startup Anthropic. Additionally, OpenAI President Greg Brockman is taking an extended leave until the end of the year. Peter Deng, a product manager, also exited OpenAI recently. Schulman's departure is driven by his desire to focus more on AI alignment research and hands-on technical work. He believes he can further this goal at Anthropic. Schulman has played a key role in OpenAI's development, including leading the reinforcement training team for ChatGPT. He will be missed, as acknowledged by OpenAI CEO Sam Altman.

Takeaway: With Schulman's exit, only three of the original 11 OpenAI founders remain: Sam Altman, Greg Brockman, and Wojciech Zaremba. Despite controversies around OpenAI's AI safety research, Schulman emphasizes that his departure is a personal decision, not due to a lack of support from the company. (Read Deeper)

AROUND DE WORLD & POLITICS

Northern Elders Criticize Tinubu’s Address Amid Attacks On Lagos Protesters

The Northern Elders Forum (NEF) has expressed disappointment with President Bola Tinubu's recent national address, criticizing him for not addressing severe security issues in the North-West and other northern regions. The forum highlighted the ongoing struggles with banditry, kidnapping, and other crimes and called for immediate and concrete plans to alleviate these challenges.

Takeaway: Protesters in Lagos faced attacks by suspected hoodlums at the Alausa venue of the #EndBadGovernanceInNigeria protest. Despite President Tinubu's appeal for dialogue, protests continued in Lagos, Port Harcourt, and Osogbo, with demonstrators demanding the reversal of fuel subsidy removal, reduced electricity tariffs, and free education, among other issues. The police claimed they were unaware of the attacks on protesters. (Read Deeper)

Several US Personnel Were Injured In A Rocket Attack

Several US personnel were injured in a rocket attack on the Ain al-Assad base in western Iraq on Monday, heightening regional tensions over a possible Iranian counterattack on Israel. The base, which hosts American troops and personnel from the US-led coalition against the Islamic State, has been a frequent target of such attacks. A US defense spokesperson confirmed the incident, stating, "There was a suspected rocket attack today against US and coalition forces at the base. Initial indications are that several US personnel were injured."

Takeaway: This attack follows a pattern of rocket fire that was frequent earlier in the conflict between Israel and Hamas militants in Gaza but had largely ceased until now. The latest incident comes amid growing fears of an Iranian-led attack on Israel in retaliation for the recent killing of top Hamas and Hezbollah figures, which Iran and Hezbollah have vowed to avenge. (Read Deeper)

ENTERTAINMENT & SPORTS

Conor Gallagher Agrees To £33m Move To Atletico Madrid

Chelsea midfielder Conor Gallagher has agreed to join Atletico Madrid in a deal worth £33 million. The agreement follows Chelsea's acceptance of the offer last week, despite initial concerns about Gallagher's willingness to make the move. The move will mark the end of Gallagher's 18-year tenure at Stamford Bridge, where he progressed through Chelsea's academy. He is now expected to travel to Spain to complete his medical examination and finalize his contract. (Read Deeper)

Simone Biles And Jordan Chiles Demonstrate Olympic Sportsmanship

Simone Biles and Jordan Chiles exemplified the Olympic spirit at the Paris 2024 Olympics. During the floor competition, Brazilian gymnast Rebeca Andrade edged out Biles by a mere 0.033 points to claim the gold medal, with Biles and Chiles taking silver and bronze, respectively. Despite facing physical challenges, including soreness in her left calf and potential back issues, Biles demonstrated grace and respect. At 27, as the oldest American female gymnast since the 1950s, she encountered difficulties during her routine but maintained a positive outlook. (Read Deeper)

PODCAST(WHAT WE ARE LISTENING TO)

• The Man Who Knows The Cheat Code To Money. ( Listen )

EXTRA BREVITI

• Access Bank Reduces Stake in Botswana Subsidiary to Comply with Regulations.( Read More )

• Elon Musk Files New Lawsuit Against OpenAI and Sam Altman ( Read More )

• US Spot Bitcoin ETFs Experience $168 Million in Net Outflows. ( Read More )