China Market Update: Baidu Releases New AI Model, Week In Review
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Asian equities mostly followed Wall Street higher overnight as Japan and Taiwan outperformed, while India and Singapore underperformed.
The Politburo issued a press release reiterating that it is willing to step in and support the market through its various mechanisms. These include the 'National Team', which refers to investment firms associated with sovereign wealth. It also mentioned supporting consumption, cutting rates at opportune times, and lowering some regulatory barriers. We are likely to see a cut to the reserve requirement ratio (RRR), though we may have to wait for more clarity on tariffs or for the People's Bank of China (PBOC), China's central bank, to gain the confidence necessary to make the cut.
Baidu unveiled a new AI model, ERNIE 4.5 Turbo, overnight. The new large language model (LLM) is being offered at an even lower price point than previous versions. Combined with upgrades, it could offer Baidu a new edge in the ongoing price war between China's LLM and cloud providers, chiefly Tencent, Alibaba, and Baidu. Baidu shares were up in Hong Kong overnight and are trading slightly higher in the US this morning.
Electric vehicle names struggled overnight after Tesla's disappointing earnings, though the China-based players are in a very different situation. Xpeng led declines and is down -3% this morning in US trading.
Mainland media reported that certain semiconductor and technology imports from the US were to be exempted from retaliatory tariffs. Bloomberg reported that China is also mulling exemptions for medical equipment and chemicals, including methane. This makes sense and mirrors the US' move to exempt electronics, as no one wants to pay $2,000 or more for an iPhone. This is more evidence that tariffs will not be sustainable and are likely still opening gambits for negotiations, albeit very strong ones. Alternatively, tariffs could be in place long-term, but with so many exemptions as to make their overall impact. Any long-term tariffs are likely to target specific industries.
After Xi's recent visit to Kenya, China will finance the country's construction of roads and railways. China's Belt & Road Initiative has expanded China's trade with African nations. Trade tensions could give China a new zeal to make deals and increase trade with Africa, which could benefit the infrastructure industry.
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CNN
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Chicago Tribune
an hour ago
- Chicago Tribune
The Tea app was intended to help women date safely. Then it got hacked.
Tea, a provocative dating app designed to let women anonymously ask or warn each other about men they'd encountered, rocketed to the top spot on the U.S. Apple App Store this week. On Friday, the company behind the app confirmed it had been hacked: Thousands of images, including selfies, were leaked online. 'We have engaged third-party cybersecurity experts and are working around the clock to secure our systems,' San Francisco-based Tea Dating Advice Inc. said in a statement. The app and the breach highlight the fraught nature of seeking romance in the age of social media. Here's what to know: Tea founder Sean Cook, a software engineer who previously worked at Salesforce and Shutterfly, says on the app's website that he founded the company in 2022 after witnessing his own mother's 'terrifying' experiences. Cook said they included unknowingly dating men with criminal records and being 'catfished' — deceived by men using false identities. Tea markets itself as a safe way for women to anonymously vet men they might meet on dating apps such as Tinder or Bumble — ensuring that the men are who they say they are, not criminals and not already married or in a relationship. It's been compared to the Yelp of dating. In an Apple Store review, one woman wrote that she used a Tea search to investigate a man she'd begun talking to and discovered 'over 20 red flags, including serious allegations like assault and recording women without their consent.' She said she cut off communication. 'I can't imagine how things could've gone had I not known,' she wrote. A surge in social media attention over the past week pushed Tea to the No. 1 spot at the U.S. Apple Store as of July 24, according to Sensor Tower, a research firm. In the seven days from July 17-23, Tea downloads shot up 525% compared to the week before. Tea said in an Instagram post that it had reached 4 million users. A female columnist for The Times of London newspaper, who signed into the app, on Thursday called Tea a 'man-shaming site' and complained that 'this is simply vigilante justice, entirely reliant on the scruples of anonymous women. With Tea on the scene, what man would ever dare date a woman again?' It's unclear what legal recourse an aggrieved man might have if he feels he's been defamed or had his privacy violated on Tea or a similar social media platform. In May, a federal judge in Illinois threw out an invasion-of-privacy lawsuit by a man who'd been criticized by women in the Facebook chat group 'Are We Dating the Same Guy,' Bloomberg Law reported. In its statement, Tea reported that about 72,000 images were leaked online, including 13,000 images of selfies or photo identification that users submitted during account verification. Another 59,000 images that were publicly viewable in the app from posts, comments and direct messages were also accessed, according to the company's statement. No email addresses or phone numbers were exposed, the company said, and the breach only affects users who signed up before February 2024. 'At this time, there is no evidence to suggest that additional user data was affected. Protecting tea users' privacy and data is our highest priority,' Tea said. It said users did not need to change their passwords or delete their accounts. 'All data has been secured.'
