World News Daily(2024-08-06) : Global Stock Market Crash: Causes and Consequences

Global Stock Market Crash: Causes and Consequences

Global markets crashed. Japan's Nikkei 225 fell 12.4%. Fears of a US recession sparked sell-offs. Grim US jobs data fueled panic. Unemployment rose, hiring stalled. Analysts predict a 25% chance of US recession.

Debt drives the US economy. Nearly $1 trillion in new debt every 3-4 months. High yields attract buyers but lead to problems. Government bonds, once safe, face volatility. Inflation threatens bond value. Central banks struggle with rates. Uncertainty breeds market volatility.

Middle East tensions add to global instability. Trust in US leadership wanes. Markets react to fear and uncertainty. The future remains uncertain.

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Politics

Decline of the Dollar as Global Reserve Currency

The dollar's reign as the global reserve currency is under threat. The shift away from free trade and toward protectionism, driven by economic and political tensions, is reshaping the global economy. Countries are moving towards autarky—closed economies with limited international trade. This trend is pushing the world towards a multipolar economic order, with trade blocs forming among geopolitically aligned nations.

Trade imbalances, driven by mercantilist policies and significant savings in surplus countries, have historically necessitated a universal reserve currency. However, rising trade barriers and the vulnerabilities exposed by global disruptions are reducing these imbalances. The need for a single dominant reserve currency is diminishing as trade and capital flows within these blocs become more balanced.

The transition to a multipolar system could hinder global economic growth and living standards. The principle of comparative advantage, which drives efficiency, is being undermined. This shift encourages suboptimal production and increases costs. The dollar's decline is a symptom of deeper changes in the global economic landscape.

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Global Economic Impact of Rising Israel-Iran Tensions

Israel-Iran tensions have escalated, causing markets to plummet and fears of war to loom. US job growth has slowed, sparking concern among economists. Iran may strike Israel, with Blinken warning G7 allies and Hezbollah potentially joining the conflict. Hamas leaders have died in Tehran, with retaliation expected.

Financial expert Paul Goncharoff sees significant danger, as any conflict could cripple the global economy. High borrowing costs and Fed rate hikes are straining the US. The region could become a no-go zone, with freight rates soaring and oil prices likely rising. US drilling programs have been paused, and gold, silver, and cryptocurrencies may surge.

Anti-Russia sanctions and a potential Iran conflict could hit the G7 hard, with the Hormuz Strait at risk. Washington's policies have been criticized, and an expert calls the situation dangerous and uncharted.

Summary: The escalation between Israel and Iran threatens the global economy, with the US job slowdown adding to the woes. Markets have reacted negatively, and a potential war could disrupt oil supply and hike prices. Safe-haven assets like gold and cryptocurrencies may benefit. Experts warn of high stakes and unpredictable outcomes.

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Society

Japan's Trading Houses Address Logistics Labor Shortages with Tech Innovations

Japan's delivery firms face labor shortages. Trading houses step in with tech solutions. Sumitomo partners with a US firm to sell 1,500 cargo-loading robots by 2026. These robots match human efficiency.

Itochu collaborates to develop software. It analyzes 70 data points for optimized shipping. Targets logistics firms needing better data management.

These innovations aim to ease labor strain and boost efficiency in Japan's logistics sector.

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WeChat Subscription Account Tests New Feature: Express News Delivers Latest Headlines

WeChat Subscription Accounts are testing a new feature called "Express News," which pushes the latest news sourced from official media, ensuring authority. Users can receive these updates even if they haven't subscribed to the account. Express News may appear in the newsfeed, and users have the option to disable it.

Gray-scale testing: A small-scale test conducted on a portion of users before a software or service is fully launched.

WeChat has also recently tested other features such as "Listen" and "WeChat Installments," demonstrating its continuous efforts to innovate and adapt to user needs.

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Google Loses Antitrust Case Over Search Dominance

Google lost an antitrust case. A U.S. judge declared Google a monopoly in search and text ads. The judge found that Google violated the law by excluding competitors and employing a loophole to maintain its dominance.

The case was significant, filed in 2020 by the Justice Department and several states. The judge scrutinized Google's agreements with Android and Apple, which bolstered its market control.

Google intends to appeal, arguing that its search service is superior and should be user-friendly. Shares fell by 4% following the ruling.

Antitrust laws are designed to prevent monopolies, ensuring fair competition. A monopoly arises when one company dominates a market, often resulting in higher prices and reduced innovation.

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Lee Tsung-dao's Passing: Academic and Educational Contributions of a Nobel Laureate in Physics

Tsung-Dao Lee, a Nobel Laureate in Physics, lived to the age of 98. He and Yang Zhenning jointly proposed the theory of parity non-conservation, challenging the scientific community's understanding. Born into a scholarly family, Lee faced hardships in his early education. Under the guidance of Shu Xingbei and Wu Dacheng, he went to the United States for further studies. At the University of Chicago, he became a doctoral student of Fermi and, in collaboration with Yang Zhenning, published several significant papers. In 1957, they won the Nobel Prize for their theory of parity non-conservation, when Lee was 31 years old.

Despite the end of his collaboration with Yang Zhenning due to ranking disputes, Lee made immense contributions in academia and education. He promoted the establishment of the Gifted Youngsters class at the University of Science and Technology of China, proposed the creation of a postdoctoral system, and chaired the China-U.S. Joint Physics Examination and Application Program (CUSPEA), injecting vitality into domestic academic research. In his later years, he remained active in the academic frontline and donated his life's collection to Shanghai Jiao Tong University.

Tsung-Dao Lee's life is a brilliant chapter in physics and education. His achievements, though summarized in just a few words, reflect his over sixty years of unremitting pursuit.

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Global Market Sell-Off: Dow Drops 1,000 Points Amid Recession Fears

Stocks faced a severe downturn on Monday. The Dow Jones Industrial Average lost over 1,000 points, a decline of nearly 3%. The S&P 500 and Nasdaq Composite also fell, by 3% and 3.43% respectively, marking their steepest drops since September 2022.

The sell-off was triggered by fears of a U.S. recession, compounded by a disappointing July jobs report. Investors are concerned that the Federal Reserve is too slow to reduce interest rates, which remain at their highest levels in two decades.

Technology stocks were particularly hard hit. Nvidia fell 6.4%, and Apple dropped 4.8%. Berkshire Hathaway reduced its stake in Apple by half. Tesla and Super Micro Computer also saw declines.

Japan's Nikkei 225 experienced its worst day since the 1987 Black Monday, falling 12.4%. Global markets were shaken. U.S. Treasury yields dropped as investors sought safer investments. Bitcoin fell from $62,000 to $54,000.

The VIX, a measure of market volatility often referred to as Wall Street's fear gauge, surged to 65, its highest level since the early 2020 Covid panic.

Sam Stovall of CFRA Research noted that the market was vulnerable and a correction was inevitable. The S&P 500 is now 8.5% below its recent peak.

Austan Goolsbee of the Chicago Fed suggested that interest rates might be too restrictive, and the Fed will adjust if the economy deteriorates.

Only 22 stocks in the S&P 500 ended the day higher. Major indexes recorded their worst three-day losses since 2022.

U.S. crude oil prices hit a six-month low, and OPEC's plans to increase production are now in question. Solar ETFs also suffered, falling to a four-year low.

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Economy

Nikkei 225 Suffers Historic Intraday Drop

Tokyo's Nikkei 225 plummeted severely, shedding over 4,000 points, worse than the crash of '87.

A selling frenzy began last week due to weak U.S. job numbers, sparking fears of a U.S. economic slowdown.

The yen has strengthened as investors are shifting from dollars to yen, possibly leading to interest rates leveling off.

The Fed might reduce rates more quickly, while the Bank of Japan could increase rates, adding to the uncertainty ahead.

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Xpeng Aeroht has secured $1.5 billion in financing and plans to establish a factory in Guangzhou for the mass production of flying cars.

Xpeng Aeroht has secured $150 million in funding and plans to build a factory in Guangzhou for the mass production of flying cars.

The factory will produce the "Land Aircraft Carrier" flying vehicle, with pre-sales expected in the fourth quarter.

The company has developed core technologies in-house and has conducted nearly 20,000 flight tests.

The "Land Aircraft Carrier" consists of a ground module and a flying module. The latter is an all-electric vertical take-off and landing aircraft with both manual and autonomous driving modes.

The ground module is an intelligent driving cabin designed to recharge the flying module. It features a three-axis, six-wheel design with all-wheel drive and rear-wheel steering capabilities.

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The People's Bank of China Shanghai Head Office promotes the stability of the real estate market and the optimization of financial policies.

The Shanghai Headquarters of the People's Bank of China emphasized the stability of the real estate market in the second half of 2024. It supported new policies to reduce mortgage down payments and interest rates. It promoted the "Sixteen Financial Measures" to encourage banks to issue property loans and activate real estate company assets. It utilized collateralized supplementary loans to support projects. It continued to provide financial services for building completion and increased financial support for housing rentals.

The central bank also coordinated to resolve the remaining P2P online lending business and strengthened market and financial monitoring. It implemented a 3000 billion yuan re-lending facility for affordable housing to promote a balance between renting and buying. It optimized investor fund management and pushed for financial market openness. It accelerated the deployment of affordable housing loans, with over 12 billion yuan already issued. It signed bond borrowing agreements with financial institutions and sold government bonds as circumstances required.

The central bank continued to drive policy implementation to promote healthy market development. It pushed for the interconnection of bond market infrastructure. It established a re-lending facility for affordable housing to expedite inventory reduction. It held promotion meetings to ensure policy execution.

Collateralized Supplementary Loans (PSL): A lending tool provided by the central bank to support funding needs in specific areas such as affordable housing and key projects.

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Technology

ChangXin Memory Technologies has advanced the mass production of HBM2 memory, marking a significant step towards self-sufficiency in Chinese technology.

ChangXin Memory, China's memory giant, has initiated mass production of HBM2 memory. This move is two years ahead of schedule, demonstrating China's determination for self-sufficiency in storage technology. HBM2, or High Bandwidth Memory, is specifically designed for advanced AI and HPC applications. Despite its technical complexity, ChangXin Memory has overcome the challenges. Despite fierce global competition, ChangXin Memory's progress holds significant meaning for China's tech industry.

HBM2: High Bandwidth Memory, which provides high-speed data transfer through vertical stacking and wide interface design, is a critical technology in the fields of AI and HPC.

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Spatial Computing: Transformative Human-Computer Interaction Technology

Spatial computing, the next-generation human-computer interaction platform, is transforming the way we interact with digital information. Moving away from screen dependency, data is integrated into the physical environment, making interactions more intuitive and natural. This technology combines AR, AI, and geospatial analysis to seamlessly blend digital information with the real world, enhancing the reality experience.

In fields such as education, work, and shopping, spatial computing brings significant changes. In education, it creates immersive learning experiences; in the workplace, it enhances remote collaboration; in the shopping sector, it offers more immersive shopping experiences through AR and MR technologies.

AI plays a crucial role in spatial computing, enabling personalized experiences, the development of autonomous systems, and real-time data processing. However, implementing spatial computing faces challenges such as cost, technical complexity, user training, and data privacy.

Addressing these challenges requires measures such as transparency, data minimization, anonymization, and secure data processing. Spatial computing is not just a future concept but also a transformative tool available today, providing a strategic roadmap for business leaders and technology experts.

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Enhancing AI Data Collection with Bright Data's Tools

Bright Data offers advanced tools for AI data collection, focusing on publicly available data. Their solutions include the Web Scraper API and the Scraping Browser, used by major companies like Microsoft and Mozilla.

Advantages:

• Efficiency: Pre-written scripts and dynamic scraping capabilities speed up data collection.
• Reliability: Robust infrastructure ensures stable, high-quality data extraction.
• Global Adoption: Supports large-scale data needs for global brands.

Practical Use: The Scraping Browser simplifies multi-step data collection, boosting developer productivity and cutting infrastructure costs. It integrates easily with tools like Puppeteer and Playwright.

Marketplace: Bright Data’s dataset marketplace provides ready-to-use datasets, priced based on usage frequency. Benefits include no-code scraping and strict validation methods.

Conclusion: Bright Data streamlines data collection for AI, enhancing model training. As AI and ML evolve, web scraping tools will require less manual intervention, though ethical concerns remain paramount.

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3D-Printed Ceramic Monoliths for Efficient PFAS Removal

British scientists at Bath University have developed a method to remove toxic PFAS chemicals from water using 3D-printed ceramic lattices. These structures, known as "monoliths," are made from ceramic infused with indium oxide, which binds to PFAS molecules.

The monoliths, which resemble stacked waffles, are designed with a high surface area to maximize PFAS capture. In tests, they removed 53% of PFOA from water within three hours. After a heat treatment at 500°C, the monoliths can be reused, with efficiency improving to 75% removal by the third cycle.

This process is energy-efficient and scalable, requiring no external energy beyond the initial heat treatment for regeneration. The simplicity and effectiveness of this method holds promise for integration into existing wastewater treatment facilities.

PFAS, known as "forever chemicals," are persistent in the environment and linked to various health issues. This new approach offers a practical solution to a significant environmental and health challenge.

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Artificial Metabolase Developed for Targeted Cancer Immunotherapy

Scientists at Shanghai Jiao Tong University have developed a new approach to cancer treatment. They've created an "artificial metabolase" that tweaks tumor cell metabolism, sparking an immune response. This method, detailed in Nature Nanotechnology, targets a broad metabolic marker in tumors, activating nearby immune cells to attack.

Traditional cancer treatments like surgery, chemotherapy, and radiation often lead to drug resistance and side effects. Immunotherapy, which uses the body's immune system to fight cancer, has shown promise but faces challenges like over-activation and individual variability.

The artificial metabolase mimics the action of natural enzymes, specifically xanthine oxidoreductase (XOR), which plays a role in converting certain compounds in the body. By doing so, it triggers the production of uric acid within tumor cells. This uric acid acts as a signal, prompting immune cells like macrophages to attack the tumor.

This research, led by Professors Ling Daishun and Li Fangyuan, marks a shift towards more precise, metabolic-based cancer therapies. It's a promising step that could revolutionize how we treat not just cancer, but other diseases linked to metabolic abnormalities.

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Video Game

"Black Myth: Wu Kong": A New Milestone for Chinese AAA Games

"Black Myth: Wu Kong," a Chinese AAA-level game adapted from "Journey to the West," is set to release. This game combines the classic image of Sun Wukong with modern gaming technology, garnering widespread international attention. Despite cultural differences and controversies over "political correctness," the game has seen strong pre-order sales and ranks on Steam's wishlist.

IGN previously questioned the workplace culture of Game Science and criticized the absence of female characters in the game. However, recent reviews have shifted to positive, praising the game's visual effects and fluidity, and confirming that the final version will include female characters.

Expert Zou Sheng believes that although the repeated use of classics may lead to aesthetic fatigue, "Black Myth" infuses new life into the old story through new music, action scenes, and narrative elements. He notes that Chinese games have a long tradition of incorporating martial arts elements, but whether developers will continue to explore Chinese cultural characteristics in the process of globalization remains to be seen.

Associate Lecturer Zhang Chi mentions that the Chinese gaming industry generally resists "political correctness," but in the global market, maintaining sensitivity to free values aligns with economic interests. "Black Myth" lacks overt political elements, which may be one reason for its success overseas.

Assistant Professor Cao Xuenan points out that cultural misunderstandings are inevitable, and the game's primary audience is young people, so developers may not have considered political correctness as a comprehensive category. Nevertheless, overseas media has generally given positive reviews, considering "Black Myth" to be a visually stunning and hardcore action RPG game.

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Entertainment

Disney+ Expands with National Geographic Environments and 3D Films on Vision Pro

Disney+ now offers immersive environments on Vision Pro, beginning with a snowy Thingvellir National Park, courtesy of National Geographic. These environments, captured through advanced photography, enhance the viewing experience with interactive elements and sounds. Disney+ also introduces 3D films on Vision Pro, featuring Marvel's "Avengers" series and "Ant-Man."

Insight: This technology deepens the viewer's connection, bringing distant landscapes and cinematic experiences closer, similar to a well-crafted story that transports readers to new worlds.

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Tesla Braking Controversy Settled: Court Ruling and New Developments in Industry Standards

The "Brake Gate" incident involving Tesla at the Shanghai Auto Show has finally been resolved. The court ruled that Ms. Li from Xi'an must compensate Tesla 70,000 yuan, and Ms. Zhang from Henan must pay 170,000 yuan. Previously, Ms. Li and Ms. Zhang had accused Tesla of brake failure at the Shanghai Auto Show, causing Tesla's reputation to suffer and resulting in the loss of over 1.7 billion yuan in orders and tens of millions in goodwill.

The judicial appraisal institution commissioned by the court confirmed that Tesla's vehicle braking system was normal and effective, with no faults. Tesla subsequently sued the relevant individuals and was awarded a total of 490,000 yuan in compensation. Tesla has not participated in the Beijing/Shanghai Auto Show for three consecutive years since 2021.

The Ministry of Industry and Information Technology recently released a draft for public comment on the "Technical Requirements and Test Methods for Passenger Vehicle Braking Systems," aiming to further standardize braking systems, especially with new requirements for electric regenerative braking systems to reduce misuse. Tesla responded that the standard has not yet been officially implemented and does not affect existing products.

In summary, the resolution of Tesla's "Brake Gate" incident not only vindicated Tesla but also promoted the standardized development of new energy vehicle braking system technology. Passenger safety requires the joint efforts of automakers, regulations, and the public.

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GRM Daily: A Decade of Shaping Black British Music

GRM Daily, a YouTube channel, started 15 years ago. It became a hub for grime music, a genre that was hard to find then. Wretch 32, a rapper, was among the first featured. He recalls, "When people didn't know where to find us, GRM Daily was there."

Posty founded GRM Daily in 2009. It's now the "epicentre of black British music." The channel has nearly seven million subscribers and has launched careers, including Central Cee's.

The GRM Gala celebrates black excellence annually. This year, big names like Giggs, Ghetts, and Ms Banks attended. Posty feels honored to contribute to the grime scene, giving it more exposure.

Some artists, like Ms Banks, note barriers for female rappers. They face higher expectations and fewer opportunities. Alesha Dixon praises artists like Little Simz for breaking stereotypes.

Posty reflects on GRM Daily's impact. It's not just about music; it's about creating jobs and supporting the community. Fifteen years on, it still feels fresh.

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Health

MedSAM-2: Advanced Medical Image Segmentation Model

MedSAM-2, a new model, segments medical images like a video. It operates on both 2D and 3D images, focusing on organs, tumors, and more. Users provide a single prompt, and it segments all similar objects in subsequent images. Tests indicate it outperforms other models in accuracy and versatility. The code is available on GitHub.

Segmentation: dividing images into meaningful parts for analysis.

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Quantum simulation technology applications in biological molecular systems.

A team from the University of Melbourne in Australia has, for the first time, simulated biological molecular systems with quantum precision using a supercomputer. This technology can accurately predict molecular chemical reactions and physical properties, which is crucial for the development of new drugs.

Traditional drug development is time-consuming and carries high risks. The new method, through quantum mechanics and high-performance computing, offers unprecedented speed and accuracy, accelerating the process of drug discovery.

This research not only enhances the efficiency of drug development but also potentially provides new treatment options for intractable diseases.

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Shenzhen deploys 170 outdoor smart gyms to enhance citizens' health experience.

Shenzhen has deployed 170 outdoor smart gyms across parks and communities, serving over 5.85 million citizens with a cumulative usage of 50 million times. These facilities integrate AI, the Internet of Things, cloud computing, and big data technologies, offering physical fitness tests and exercise guidance. They feature testing areas, digital training zones, and competition zones, supporting diverse workouts and competitions.

The smart gyms are strategically located in high-traffic large parks such as Shenzhen Bay and Lotus Mountain Park to ensure high utilization rates. The integration of technology enhances the citizens' exercise experience and promotes a healthy lifestyle.

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Sports

Paris 2024 Athletes Secure Personalized Domain Names

SquatBrand has registered personalized domain names for all 10,466 athletes participating in the 2024 Paris Olympics. These domains, available in various suffixes such as .com and .io, are designed to enhance athletes' digital presence. Athletes have the opportunity to purchase these domains for a nominal fee, starting at $1,500 each. If not claimed, the domains will redirect to OnlyFans. This initiative provides athletes with a new global platform to showcase their brands.

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Zheng Qinwen's Victory: A Win-Win Situation for Sports and Business

Zheng Qinwen, the champion of the women's singles tennis event at the Paris Olympics and the first Chinese Olympic gold medalist in tennis, has not only rewritten history but also ignited commercial value. Nike, having bet on Zheng Qinwen as early as nine years ago, is now reaping substantial rewards. Nike's Olympic slogan, "The only Paris souvenir I want to take home is the medal," has become a hot topic of discussion.

Bawang Tea, with its keen eye for talent, invited Zheng Qinwen to serve as the "Health Ambassador." Following Zheng's victory, Bawang Tea quickly responded with celebratory activities, significantly increasing brand exposure.

Tennis-style fashion has seen a surge in popularity due to Zheng Qinwen's win. Taobao data shows a sharp increase in searches and transactions for tennis skirts. Brands like lululemon and FILA have capitalized on this trend by launching tennis collections, enjoying impressive sales.

Zheng Qinwen's victory is not only a triumph for sports but also a victory of commercial acumen. Brands that strategically positioned themselves early are now sharing in the fruits of victory.

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Food

Ancient DNA Reveals Potato's Battle with Disease

Researchers at North Carolina State University delved into ancient potato leaf DNA, uncovering how a disease that caused the Irish Potato Famine evolved to overcome potato defenses.

They employed a novel DNA sequencing technique, akin to fishing with tiny magnets in a DNA soup, capturing genes from both the potato and the disease. This dual approach is unprecedented.

The disease, known as Phytophthora infestans, is cunning. It can outmaneuver potato resistance genes, even before those genes are utilized in agriculture.

Some disease genes remain stable over time, while others mutate to maintain infectivity. This combination makes the disease difficult to combat.

The study suggests new methods for farmers to cultivate potatoes, potentially by employing more stable resistance genes or blending genes from wild relatives. This could enhance potatoes' ability to resist disease.

In essence, comprehending the disease's DNA offers farmers a better chance to fight back. It marks a step toward more intelligent potato breeding.

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