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WEEKLY NEWSLETTER

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What you’ll read?

• Flushing Financial Plans $70M Capital Raise Amid CRE Challenges.

• GM Shifts Focus from Robotaxis to Core Operations.

• Today in AI & Tech

• Lithium’s Role in EU-Mercosur Trade Deal.

  and more…

BUSINESS

Fed Meeting Dominates Investor Focus This Week.

Investors await the Federal Open Market Committee’s final interest rate decision of the year, with a 97% chance of a 25-basis-point cut priced in. Markets will closely watch the Fed's policy statement and Chair Powell’s press conference for future rate clues. Key economic data, including November retail sales and Q3 GDP, is also expected this week.

GM Shifts Focus from Robotaxis to Core Operations.

General Motors is winding down its Cruise robotaxi business, redirecting its focus to core operations like EVs, software, and personal autonomous vehicles. After investing over $10 billion in Cruise since 2016, GM cited high costs, competitive challenges, and capital allocation priorities for the decision. While Cruise falls short of expectations, GM will continue advancing its Super Cruise driver-assistance system and explore growth in EVs, defense, and energy sectors.

Flushing Financial Plans $70M Capital Raise Amid CRE Challenges.

Flushing Financial aims to raise $70 million through equity sales to bolster capital, driven by losses from selling low-yielding bonds and commercial real estate loans. Pricing is expected between $15 and $15.50 per share, below recent stock levels. Community banks like Flushing face capital pressure due to rising rates, with regulators urging improvements despite recent stock rebounds.

U.S. Auto Dealers Optimistic for 2025, But EV Concerns Persist.

Cox Automotive reports growing optimism among U.S. auto dealers for 2025, driven by a stable political outlook, lower interest rates, and automaker incentives. However, dealers remain cautious about electric vehicle sales, citing concerns over potential cuts to EV tax credits and weaker federal support under the incoming Trump administration.

TECH

Today in AI & Tech

Google Unveils Gemini 2.0 AI Models with Multimodal Capabilities.

Google has launched its Gemini 2.0 AI family, featuring Gemini 2.0 Flash for global chat users and an experimental multimodal version for developers, offering text-to-speech and image generation. While surpassing predecessors in coding and factual accuracy, it trails Gemini 1.5 Pro in handling longer contexts. Broader multimodal availability and integration into Google products are planned for early 2025 as part of Google’s push in the competitive AI landscape.

Generative AI Enterprise Spend Soars 500% in 2024

Business spending on generative AI skyrocketed from $2.3 billion in 2023 to $13.8 billion this year, according to Menlo Ventures. OpenAI's enterprise market share fell from 50% to 34%, as Anthropic doubled its share to 24%, driven by the adoption of Claude 3.5. Companies increasingly use multiple models to fit specific use cases, with code generation and AI agents emerging as leading applications. Foundation models like OpenAI’s ChatGPT and Google’s Gemini dominated enterprise investments, totaling $6.5 billion.

Other

ABC Settles Trump Defamation Lawsuit for $15M

ABC News will pay $15 million toward Donald Trump's presidential library and $1 million in legal fees to settle a lawsuit over George Stephanopoulos' inaccurate claim that Trump was "found liable for rape." The network will also issue a website statement expressing regret. The defamation stemmed from misstatements about verdicts in writer E. Jean Carroll's lawsuits, where Trump was found liable for sexual assault and defamation but not for rape under New York law. Trump is appealing the verdicts totaling $88.3 million in damages.

Banks to Support Trump’s 2025 Inaugural Committees

Bank of America and Goldman Sachs intend to contribute to Donald Trump’s inaugural committees but have not disclosed the amounts. In 2017, Bank of America donated $1 million to Trump’s inaugural fund, matching its contribution to Joe Biden’s 2021 inauguration, while JPMorgan gave $500,000 for Trump’s 2017 events. The committees fund parades, galas, and ceremonies, excluding the swearing-in itself.

Lithium’s Role in EU-Mercosur Trade Deal.

The EU's recent trade agreement with Mercosur countries, including Brazil and Argentina, is seen as a strategic move to secure access to critical raw materials like lithium, vital for Europe’s transition to clean energy. The deal aims to create a massive free trade zone and foster investment, although some European nations oppose it, citing potential unfair competition in agriculture. Lithium, essential for industries like electric vehicles, is particularly crucial as Latin America holds a significant share of global reserves.

NY Attorney General Rejects Trump's Request to Dismiss Civil Fraud Case.

The New York Attorney General’s Office rejected Donald Trump’s lawyer’s request to dismiss the civil fraud case, which could result in over $480 million in fines. The rejection came after Trump’s lawyer argued that the case, still under appeal, would impede his ability to fulfill presidential duties. Deputy Solicitor General Judith Vale emphasized that civil lawsuits, including this one, can proceed during a president's term and that Trump’s appeal and ongoing legal challenges do not warrant dismissal of the case.

It's a Wrap!

Thank you for joining us in this journey through the latest updates and insights. Your engagement and support mean the world to us. We hope you found this newsletter both informative and inspiring. Stay tuned for more exciting news and stories in our next edition.

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Warm regards,
Sarah