🗞️ AI race

Good morning. Anthropic, arguably the leading company in the AI race, has called for a pause of global AI development.

The company behind Claude has recommended a pause to address potential harms to society as models move toward improving themselves without human input.

Now just for a simple global agreement that everyone slows down.....good luck with that.

All the headlines and more below...

MILK'S ABOUT TO GET A LOT MORE EXPENSIVE (AGAIN)

Iran's blockade of the Strait of Hormuz has pushed fertiliser costs up 40% since late February. Energy costs for processing, refrigerating and shipping have climbed with Dairy farmers caught in the mix.

June is when processors must tell farmers the minimum milk price they'll pay for the year ahead. Farmers on the NSW far south coast say their costs have jumped 20% since the war started, but the offers coming back are flat on last year. One farmer pegged the shortfall at 10 to 15 cents per kilo of milk solids, even after Bega Cheese added a 5-cent-per-litre support payment.

Unlike beef or grain, dairy farmers have more negotiating power because there aren't many of them left and processors need to keep the relationship intact. Cost shocks move faster from farm gate to retail. Fresh milk and yoghurt will cop it first. Cheese and butter have longer shelf lives and get cushioned by commodity pricing and supermarket discounting.

AUSTRALIAN NEWS

• Record EV sales driven by war-related oil price spikes have made EVs Australians’ top future choice, with 35% preferring them over petrol and hybrid. LINK

• Anthropic has cautiously suggested that globally coordinated efforts to slow advanced AI development would be beneficial as massive AI-driven IPOs like SpaceX and Anthropic fuel a highly concentrated US sharemarket. LINK

• Dairy prices are set to spike in coming months as Iran’s blockade of the Strait of Hormuz has lifted oil and urea costs about 40%, doubling key fertiliser prices. LINK

• The Australian dollar has slumped to a 2-month low near US70.18¢ as Iran’s missile strikes on Israel and a strong US jobs report fuel expectations of higher interest rates. LINK

• A global market rout triggered by stronger-than-expected US jobs data and Fed rate hike fears has wiped US$2T off Wall Street, halted Korea’s market after an 8% plunge and raised recession risks for Australia. LINK

• The government’s planned minimum 30% tax on capital gains and discretionary trusts has alarmed tax experts as it is expected to sharply reduce donations to major charities. LINK

• Australia’s latest labour force data shows reduced employment is at a record low as total hours worked rise despite fewer people employed, indicating strong labour demand and limited AI impact. LINK

• The global airline industry has warned that a US$100B jump in jet fuel, higher security charges and new consumer protections will halve profitability this year to US$4.50 profit per passenger. LINK

KOREA HALTS ENTIRE STOCK MARKET AFTER $2 TRILLION WIPED OFF WALL STREET

South Korea's stock exchange triggered a 20-minute trading halt Monday after its market crashed 8% at the open. Samsung dropped 9%. Taiwan fell 5%. Tokyo dropped 4%. Australia's market was closed for our public holiday but opens later today into the wreckage.

The trigger was a US jobs report Friday showing employment running far higher than expected. Wall Street read that as a signal the Fed might hike rates again to combat inflation, which would choke off the AI boom propping up global tech valuations. The S&P 500 dropped 2.64%. The Nasdaq fell 4.18%. Bitcoin slid below $60,000 for the first time since October.

SpaceX, Anthropic and OpenAI are all trying to raise trillions to fund expansion. SpaceX lists Friday. Higher rates make that money harder to find, and the sector is already being questioned on whether spending justifies returns. Middle East strikes between Israel and Iran over the weekend pushed oil up 3%.

COMPANY NEWS

• Apple is preparing to unveil a major Siri overhaul at its developer conference as it seeks to exploit personal on-device data for more capable AI while preserving strict privacy controls. LINK

• KPMG is facing intense pressure as its chairman and former COO are urged to resign, the federal government reviews more than $270M in contracts and Westpac weighs retendering its $32M audit. LINK

• Airwallex acquired Leapfin to integrate revenue accounting with its global payments infrastructure. LINK

• Qantas has expanded frequent flyer options as Jetstar launches Points Plus Pay bids for upgraded Boeing 787 business cabins with 110% more seats and upcoming Classic Upgrades. LINK

• Canva has slowed hiring to keep headcount growth below 10% as it reviews open roles and repositions itself as an AI company rather than a software company. LINK

• Westpac is expanding its community banking model to 6 Queensland towns as regional hub staff drive into unserved communities to provide in-person business and retail banking services. LINK

• Anthropic has urged a global freeze on developing the most powerful AI systems as it withholds its Mythos model over cyberattack fears while reaching a US$965B valuation. LINK

• Amazon Web Services signed a US$4B cloud-services deal with Pinterest, the largest since their 2010 partnership, as Pinterest expands AI-powered advertising and visual search. LINK

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CHART OF THE DAY

Supply chain disruptions are back at 2022 levels

ONE MORE SCROLL

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BRAINTEASER

Today’s puzzle appeared on the 1% Club UK. It was the 20% question, meaning that 20% of the population could solve it correctly within the 30 second time limit. You have 30 seconds, starting......now:

Which 4-letter word is missing from this list?
spot
opts
pots
stop
tops

Answer below

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ANSWER

Post.
It is the only other word that can be made from those 4 letters.

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