Apple’s former head of design is in talks to raise $1 billion dollars to take on its iPhone with an AI-powered rival. London-born Jony Ive, whose work was instrumental to the design of a suite of Apple products including the iPod, iPhone and MacBook, is seeking to raise the funds from Japanese investing giant SoftBank in a partnership with ChatGPT maker OpenAI, according the FT. Ive and OpenAI boss Sam Altman are exploring what an AI-powered consumer device would look like, including how to make the user experience more intuitive than the iPhone.
Retail sales figures have kept the UK economy in focus after yesterday’s knife-edge rates decision by the Bank of England. The Federal Reserve also paused this week but its hawkish tone has left Wall Street fearing a longer run of high interest rates. Elsewhere, Microsoft’s Activision deal has moved a step closer to clearance by the the UK’s Competition and Markets Authority.
The FTSE 100 index is within sight of its lowest close of the year after a grim week for global stock markets. London’s top flight fell again today, leaving it down by 3% since Monday as worries mount globally over higher-for-longer interest rates. Rising borrowing costs have added to pressure on the retail sector, resulting in today’s 1.2% fall in sales during washout July.
Concerns over China’s debt-laden property sector today meant a downbeat start to the week for global stock markets. Shares in Country Garden slumped in Hong Kong to a new record low after it suspended trading of 11 onshore bonds, adding to the ongoing fears about China’s economy. West End property investment business Shaftesbury Capital today took a new step to bear down on its heavy debt burden after securing a £200 million loan.
European markets have risen despite figures showing China in deflation territory. The 0.3% year-on-year decline in consumer prices for July comes a day after poor trade figures, when exports and imports both declined by double-digit percentages. Today’s corporate results include a profitable half year for Paddy Power owner Flutter Entertainment after it benefited from strong growth at its US-based FanDuel sports betting business.