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Breaking News: Rules for the Use of AI in China

Investors are looking forward to the publication of fresh data on inflation in the US after the stock market received a boost in the previous session due to weaker-than-expected growth in consumer prices in June. China's trade data for June was worse than expected, and Beijing announced new rules for the use of generative artificial intelligence. Here's what you need to know about the financial markets on Thursday, July 13th.

1. US futures rose after the release of key inflation data

US stock futures rose on Thursday, adding to a sharp rise in the previous session, while investors await the release of another important inflation indicator.

By 05:37 ET (0937 GMT), Dow futures were up 90 points, or 0.26%, S&P 500 futures were up 17 points, or 0.37%, while Nasdaq 100 futures were up 90 points, or 0.26%. 103 points, or 0.67%.

On Wednesday, the major indexes rose to their highest level in more than a year after a closely watched June CPI slowed more-than-expected, indicating the Federal Reserve may soon reverse its recent tack on tightening policy.

The Fed's next move may become clearer later today with the release of the Producer Price Index (PPI), another key measure of inflation, at 0830 ET. Economists predict that this figure rose by 0.4% for the year and 0.2% for the month.

2. Trade in China has fallen

Chinese exports fell at the fastest rate in 3 years in June, while imports were also weaker than expected, a new sign of pressure facing the world's second largest economy.

According to customs data, the volume of imports decreased by 12.4% in annual terms in dollars, exceeding the forecast for a decline of 9.5%. |Imports also decreased by 6.8%, which was more than the forecast for a decline of 4.0%.

Exports and imports in May decreased by 7.5% and 4.5%, respectively.

Trade data cast doubt on China's ability to rely on external sources to sustain growth. Beijing has already taken measures to stimulate its economy, trying to breathe new life into the country's recovery process after 3 years of COVID-19 rules and disruptions.

However, high inflation in developed countries and ongoing geopolitical tensions are likely to continue to weigh on the country's trade activity well into the second half of 2023, a spokesman for China's customs bureau said on Thursday.

3. China will introduce a regulation on generative AI

The Chinese government has announced the release of a new set of rules governing the use of so-called generative artificial intelligence (AI), as traditionally strict regulators in Beijing seek some control over the booming industry.

According to China's influential Cyberspace Authority, companies will now be required to conduct security assessments and algorithm registration procedures before launching any products. These measures will come into effect on 15 August.

Generative AI uses massive amounts of data to create unique content based on user suggestions. The Microsoft (NASDAQ:MSFT) backed Open AI program ChatGPT is perhaps the best-known variant of this emerging technology, and its recent success has inspired a number of competitors.

China, which has tightly controlled the domestic technology industry in recent years, is closely following developments. According to some reports, Beijing may be concerned that generative AI may create content that does not align with its political views.

4 Disney Renews Contract With CEO Bob Iger

The Disney Company (NYSE:DIS) has announced a contract extension with its CEO Bob Iger until 2026, further delaying the search for his successor as head of the world's largest entertainment group.

Iger, who returned to the CEO position for the second time after the unsuccessful tenure of former CEO Bob Chapek, was originally scheduled to remain in the post until 2024. However, the company said that Iger's contract has now been pushed back to 2026, arguing that the move will ensure leadership continuity during the ongoing transformation.

Disney shares rose more than 1% in US premarket trading on Thursday. The 72-year-old Iger has to contend with a range of challenges, including a high-profile row with U.S. presidential candidate Ron DeSantis over LGBT support, stiff competition from streaming service Disney+, and the weak box office performance of Pixar's lucrative division's latest film. At the same time, Disney said it would cut 7,000 jobs to save $5.5 billion.

Forex Award | World Forex Award | Forex
Forex Award | World Forex Award | Forex
Forex Award | World Forex Award | Forex
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