The wealth effect had been keeping along with the long term upward trend of US equity market before the turbulence in Feb. Right now it seems that the trend is reversing based on the sharp decline of market since Feb18 given multiple uncertaines lingering, which is disrupting the confidence of investors substantially.
More than two years after ChatGPT's debut, generative AI continues to make astounding advances at breakneck speed. The technology that powers all-purpose chatbots is transforming many aspects of life with its ability to spit out high-quality text, images or video, or carry out complex tasks.
If characterizing the current state of EV market, it is going from optimistic to realistic. You can see waning demand, growth is still there, but it is not growing at the rate which everybody expected.
The emergence of China’s DeepSeek, which burst out of obscurity and into the center of the tech universe is changing the landscape of AI world significantly. And the release of DeepSeek's low-cost AI model has prompted global investors to reassess the valuation of Chinese assets and buy Chinese stocks, in which Alibaba is hopefully the most important beneficiary, which has become the transformational bellwehter for AI.
Market predictions for Alibaba's valuation over the past decade have been anchored in the growth of its e-commerce business. The regulatory crackdown on tech giants by Chinese authorities, coupled with the sluggish consumption in the post pandemic, has dampened investors' interest and enthusiasm around Alibaba.
Chinese economy is absolutely somewhat improving, but the recovery is kind of mixed picture, given corporate profits are still lagging and consumer sentiment is still at subdued levels. Official data showed China’s industrial profits slipped in the opening months of the year, as enterprises navigate persistent deflationary pressure and rising global trade tensions.
Facing multiple headwinds both from internal and external, China is trying to make a meaningful policy shift to boost embattled economic growth by announcing plans to raise its fiscal deficit to “around 4%” of gross domestic product, which is a rare increase that marks a significant shift in policy.
China has been under deflationary pressure with nominal GDP growing slower than real GDP for the seventh straight quarter in the final quarter of 2024. Consumer prices climbed just 0.2% in 2024 and 2023, while producer prices have declined for over two years.
Europe has been lagging in the arm race of AI significantly, where has long been seen by its critics as a place that has regulated the tech industry too heavily to the detriment of innovation.
It seems like Europe wants to shake off its anti-innovation image, hoping to be part of the AI race. In Artificial Intelligence Action Summit in Paris French President Emmanuel Macron declared France is “back in the AI race.”, while Macron touting a 109 billion euro investment in AI in the country, which also underscoring Europe’s desire, led by France, to be a part of the conversation around AI leadership and innovation that has so far been dominated by the U.S. and China.
The partnership with Apple will enable Qwen to reach a stable user base of hundreds of millions through Apple devices, which not only provides a large-scale scenario for Alibaba's AI technology, but accelerates its AI technology penetration into the consumer end, further more increasing Alibaba's leverage to seize market share with competitors.
The cooperation between Apple and Alibaba is also a self rescue action to solve their respective difficulties. Based on this, the market responded to the news quite positively..
Undoubtedly, AI will transform the world in a revolutionary way, but this change is not welcomed by everyone. With the rapid development of AI, thousands and thousands of jobs will be replaced around the world，no matter if you believe it.
Research indicates that adding one robot per thousand workers will reduce the employment rate by about 0.2%. Will AI replace your job in the future?
