World Street: Google Gemini heats up AI front, a world of 5% interest rate, longer crude cuts, brakes on EVs, no Big Mac in CosMc

Google unveiled its latest artificial intelligence model called Gemini that will compete with products from OpenAI, Microsoft and Meta. As Alphabet has been under radar due to concerns over Google’s AI capabilities this year, the new competitive model may shush the chatter and bring upside for its consumer search activity and cloud enterprise sales.

Road ahead

Saudi Arabia’s energy minister told that the OPEC+ production cuts could extend beyond March 2024 if the market requires it. Since ‘stability’ is the preferred OPEC+ word for supporting oil prices, the alliance could attempt to intervene again if prices slide further and demand disappoints. But, as last week's meeting showed, disagreements within OPEC+ run deep, and a unanimous decision could be even more difficult to reach next year, reported oilprice.com.

Anti-EV bill

The White House’s plan to boost electric vehicle (EV) adoption came under heavy fire in Congress to prohibit passage of the bill that helps US Environmental Protection Agency from enacting stricter new corporate average fuel efficiency regulations, requiring automakers to sell many more EVs by 2032. Its passage in the House follows a letter-writing campaign by some US auto dealers to get the White House to abandon its climate targets as the dealers say they find it too difficult to sell electric vehicles.

What’s on the menu?

McDonald’s new CosMc’s restaurant that is scheduled to open its first location in Bolingbrook, Illinois, has revealed full roster of menu items for the concept. There’s no Big Mac or french fries to be found at CosMc’s. Instead, the restaurant will serve a large array of beverages and treats “with bold and unexpected flavour combinations, vibrant colours and functional boosts”. The drink menu will feature dozens of new beverages, including lattes, slushes and teas unavailable on the regular McCafe menu.

Housing sweetener

Mortgage rates fell for the sixth straight week, hovering just above 7 percent and reigniting some life back into the refinance market. The rate on the 30-year fixed mortgage decreased to 7.03 percent from 7.22 percent the week prior, lowest level since mid-August. Analysts observed improvement in demand as soon as rates began to drop immediately, however, it was short-lived. They expect rates to further drop ahead in order to re-invigorate demand.

Reality check

After the bond traders who powered a strong rally in the $26-trillion US treasury market, we are about to find out if they have gotten ahead of themselves after the US jobs report. The November employment report would be crucial to determine Federal Reserve’s bets on interest rate trajectory. While softening inflation and employment data in the past month convinced the US Fed to be done raising interest rates, bringing some relief in bond yields, all eyes will be on what the next moves are.

Challenging power player

AMD launched new artificial intelligence chips that will compete against Nvidia to power AI applications. Nvidia has dominated the AI chip market for the past year, but cloud providers and technology companies have been searching for an alternative to save costs and provide flexibility.

Cooling labour market

The number of Americans filing new claims for unemployment benefits increased moderately last week, suggesting that the labour market was gradually losing momentum. The weekly jobless claims report from the Labor Department also showed unemployment rolls declining late November after the so-called continuing claims hit a two-year high in the middle of the month.