Russian state-backed hackers breach Microsoft's systems, stealing email correspondence between US government agencies and the tech company. Morgan Stanley's wealth management arm faces scrutiny from multiple regulators over client due diligence. Vietnamese tycoon Truong My Lan receives a death sentence for embezzlement. Apple plans to revamp its Mac line. Ark Investment Management invests in OpenAI — all this and more in this edition of World Street.
The big hack
Russian state-backed hackers breached Microsoft's systems, stealing email correspondence between US government agencies and the tech company, US officials confirmed on April 11.
Microsoft has notified "several" US federal agencies that the hackers may have accessed emails containing login information such as usernames and passwords, according to Eric Goldstein, a senior official at the US Cybersecurity and Infrastructure Security Agency (CISA).
Scrutiny Scramble
Morgan Stanley's wealth management arm is under investigation by multiple regulators, including the US Securities and Exchange Commission (SEC), the Office of the Comptroller of the Currency (OCC), and other Treasury Department offices, the Wall Street Journal has reported.
The regulators are examining whether the bank adequately scrutinised prospective clients' identities, the sources of their wealth, and its monitoring of their financial activity.
Embezzlement Endgame
Vietnamese property tycoon Truong My Lan received a death sentence on April 11 for her role in the nation's largest financial fraud case. Lan, chairwoman of real estate firm Van Thinh Phat Holdings Group, was convicted of embezzlement, bribery, and violating banking regulations on lending.
Lan was sentenced to death for embezzlement and 20 years in prison for each of the other charges.
Cost-Conscious CEO
Amazon CEO Andy Jassy, in his annual shareholder letter, committed to cost control while intensifying investments in growth sectors like artificial intelligence (AI). Under Jassy, Amazon has morphed into a leaner version of itself, as beginning at the end of 2022 and continuing through 2023, it initiated the largest layoffs in the company's history, cutting more than 27,000 jobs.
Those cuts have continued this year, with Amazon announcing layoffs in its cloud computing, Prime Video and Twitch livestreaming units among others.
China's Clout
China will remain the largest growth engine for the world economy despite its slowdown, the Asian Development Bank has said. “China is obviously going to still be important for some time to come. They still account for nearly half of GDP in Asia Pacific," ADB’s chief economist Albert Park said.
ADB forecasts China to post annual GDP growth of 4.8 percent in 2024, lower than the government’s target of around 5 percent
Mac Makeover
Apple Inc, with an aim to boost sluggish computer sales, is preparing to overhaul its entire Mac line with a new family of in-house processors designed to highlight artificial intelligence (AI), Bloomberg has reported.
The tech giant, which launched its Macs with M3 chips just five months ago, is said to be on the verge of producing the next-generation M4 processor. The new chip will come in at least three main varieties and Apple is looking to update every Mac model with it, the report said.
Venture Vision
Cathie Wood's Ark Investment Management has disclosed a stake in Silicon Valley's artificial intelligence (AI) frontrunner OpenAI. The investment signals Ark's confidence in the transformative potential of the burgeoning AI sector, reported Bloomberg.
In a client email, Ark said, “As of April 10, 2024, the Ark Venture Fund invests in OpenAI,” referring to its $54 million VC fund. “OpenAI is at the forefront of a Cambrian explosion in artificial intelligence capability,” the tech-focused asset manager said in the note.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
