World Street | SAP's AI scale-up, Tesla's subdued growth outlook, China's dovish pitch, Saudi's first alcohol store

The tourism to the religious hub is anticipated to benefit various sectors, including hotels, airlines, hospitality, FMCG, travel ancillaries, and cement.

SAP has gone on a $2.2-billion restructuring programme for 2024, while Tesla has lowered the growth forecast for the year. Saudi Arabia gears up for first alcohol store in Riyadh, China lowers mandatory cash reserves for banks, and more on January 25 edition of World Street.

German software firm SAP has unveiled a €2-billion ($2.2 billion) restructuring programme for 2024 that will affect 8,000 roles, as it seeks to better focus on growth in artificial intelligence (AI)-driven business areas.

SAP said that it expects generative AI to fundamentally change its business and has pledged to invest more than $1 billion by backing AI-powered technology startups through its enterprise capital firm Sapphire Ventures.

Tesla has told suppliers it wants to start production of a new mass market electric vehicle codenamed 'Redwood' in mid-2025, reports Reuters.

Tesla CEO Elon Musk has long whetted fans' and investors' appetite for affordable electric vehicles and self-driving robotaxis that are expected to be made on next-generation, cheaper electric car platforms.

China's central bank will cut the amount of cash that banks must hold as reserves from February 5, the first such cut for the year as policymakers extend efforts to shore up a fragile economic recovery amid plunging stock markets. The world's second-largest economy struggled to mount a strong post-Covid recovery last year as distress in the housing market, local government debt risks and weakening global demand slowed the momentum, weighing on investor sentiment at the beginning of 2024.

Saudi Arabia is preparing to open its first alcohol store in the capital Riyadh which will serve exclusively non-Muslim diplomats, according to a Reuters report. The move is a milestone in the kingdom's efforts, led by Saudi Crown Prince Mohammed bin Salman, to open the ultra-conservative Muslim country for tourism and business as drinking alcohol is forbidden in Islam.

Billionaire hedge fund manager Bill Ackman and his Israeli-born wife Neri Oxman have agreed to buy an equity stake of around 4.9 percent in the Tel Aviv Stock Exchange (TASE), the Israeli bourse said. The purchase was part of the TASE's secondary offering of 18.5 percent of its shares, in which it sold 17.2 million shares at 20.60 shekels per share for 353.4 million shekels ($95 million).

Tesla's fourth quarter revenue and profit missed analysts estimates as total revenue rose just by 3 percent on-year due to reduced average selling price amid steep price cuts across the globe. In an investor presentation, the company said that the vehicle volume growth will be lower than last year's growth rate as they work towards launching next-generation vehicle in Texas.

British billionaire Joe Lewis pleaded guilty to passing inside corporate information to his private pilots and girlfriend. Lewis pleaded guilty to three counts of securities fraud, including conspiracy, at a hearing in federal court in Manhattan on Wednesday. The plea comes six months after the Bahamas-based octogenarian was charged with more than a dozen counts, including securities fraud.

EasyJet and rest of the airlines operated less flights in Europe this week but generally things are looking up as the budget airline said that their summer bookings are building well and winter loss is expected to be lower this year. The British airline operator said that they filled  two planes every minute at peak booking times and saw its biggest-ever day for sales on January 6, 2024.

North-Korea-linked hacks of cryptocurrency platforms rose to a record high in 2023, but actual amount of funds stolen dropped around 40 percent, as per a report from blockchain analysis firm Chainalysis Inc. In a series of 20 hacks throughout the year, cybercriminals linked to the Democratic People’s Republic of Korea that siphoned slightly more than $1 billion worth of cryptocurrency, compared to $1.7 billion in 2022.

IBM announced fourth-quarter results that exceeded Wall Street’s expectations, with revenue rising 4 percent on-year. The company said that they braced for a very challenging macro-environment and guided $12 billion in 2024 free cash flow and revenue growth in the mid-single digits at constant currency.