Financial Times Longitude Survey Highlights CFOs' AI Investment Priorities and ROI Expectations

The AI Tipping Point: Half of CFOs will axe AI investment if it doesn't show ROI next year

Financial Times Longitude conducted a survey involving 400 global CFOs and finance leaders, revealing that 78% plan to increase AI investment over the next 12 to 18 months. However, half of the CFOs are willing to cut AI investments if they do not show measurable ROI within a year. The survey also highlights that cost efficiency is the biggest priority for financial leaders, and change management and unclear AI strategy are major barriers to finance transformation.

Financial Times

Fed Rate Cut Fails to Lower Mortgage Rates; Economic Uncertainty Persists

Why mortgage rates are still high after a Fed cut — and likely won't go down anytime soon

Despite the Federal Reserve's quarter-point cut to its key interest rate, mortgage rates remain high.  The Mortgage Bankers Association suggests rates could rise further due to economic strength and the impact of Trump's policies.  Low existing home sales indicate the negative impact of high mortgage rates on the housing market.  Trump's presidency adds to economic uncertainty.

Financial Times Reports on UK Mortgage Rates and Economic Overheating

Newspaper headlines: US economy 'overheating' and 'Ukraine fears'

The Financial Times reported that the UK mortgage rates are expected to remain higher in 2025, with a 4% prediction for the end of the year. Additionally, the report highlighted concerns about the US economy overheating as a result of surging stock markets, with potential for economic reversals.

British Banks Face Expensive Motor Finance Crash

British banks face an expensive motor finance crash

The Financial Times reported that British banks, including Close Brothers and Lloyds, are facing significant liabilities due to mis-sold car finance deals. Potential compensation costs could reach many billions. The Court of Appeal ruled that dealers must offer the best finance deal to customers, and not shroud excess interest charges in small print. The Financial Conduct Authority (FCA) has banned the practice of dealers receiving higher commissions for costly finance deals.

Goldman Sachs Cuts European Growth Forecasts Following Trump's Win

Goldman Sachs slashes growth forecasts for Germany, UK and wider Europe on Trump win

Goldman Sachs significantly lowered its growth forecasts for the Euro area, Germany, and the UK following Donald Trump's election victory.  The downgrade reflects concerns about increased trade policy risks and geopolitical uncertainty under a Trump presidency.  Other analysts, like Berenberg, also revised their forecasts downward, albeit less drastically.

Trump's Election Victory Triggers Concerns Over Tariffs, Impacting Chinese Stocks and Currency

Wegen Sorge vor Trumps Zöllen: Chinesische Aktien fallen nach US-Wahl

Following Donald Trump's election victory, concerns about potential tariffs on Chinese goods led to significant losses in Chinese stock markets.  The Hang Seng China Enterprises Index fell by 2.6 percent, while the CSI 300 index dropped by 0.5 percent.  Analysts predict potential trade wars if Trump implements his proposed tariffs.  The uncertainty also negatively impacted the Chinese yuan.

Impact of Trump's Election on European Wind Power Companies

Hurricane Trump will blow Europe’s wind power recovery off course

The election of Donald Trump has had a significant negative impact on European wind power companies such as Vestas and Ørsted. Vestas is down more than 60% since early 2021, and Ørsted has lost more than two-thirds of its value since its January 2021 peak. Ørsted has implemented a recovery plan involving job cuts and reduced renewable energy capacity targets to support its share price. Vestas has seen some progress in recovering its operating profit margins, reaching 4.2% in the third quarter, but faces ongoing challenges in its services business, with operating margins declining to 16% in the third quarter, compared to an average of 25% from 2018 to 2022. The US market remains crucial for Vestas, as more than 40% of its firm order intake in the third quarter came from the Americas.

European Car Industry Faces Challenges Including Carbon Fines and Declining Profits

Carbon fines will only add to Europe’s automotive pile-up

The European car industry is facing significant challenges, including weak domestic demand, declining electric vehicle sales, intense competition from Chinese automakers, overcapacity, and falling profits. EU carmakers may face potential fines totaling €12.5 billion for exceeding carbon dioxide emission limits. The EU requires a 15% reduction in CO₂ emissions by 2025, leading to a target of 95g/km for the industry. Collective operating profits for European carmakers are predicted to drop from €90 billion in 2023 to around €60 billion in 2024, with Volkswagen being the most exposed to potential carbon fines and declining profitability.

FT taps Foy to cover European banking

Financial Times has appointed Simon Foy to cover European banking, a move that highlights the newspaper's commitment to in-depth financial reporting. Foy, who previously covered accounting for the Financial Times, brings extensive experience from his background in financial and political journalism, having worked at The Telegraph, The Irish Times, and Bloomberg.

Trumponomics: Global Economic Repercussions

Should we fear Trumponomics? What tariffs could mean for the US, UK, EU, China and the world

The potential re-election of Trump could lead to global economic repercussions due to tariffs, with China's GDP expected to fall by about 1% a year for two years. The National Institute of Economic and Social Research (NIESR) forecasts that worldwide economic output could drop by 2% GDP after five years of Trump being in office. The impact on Mexico and Canada would be significant, while the EU could potentially benefit from stronger demand for European goods.

Financial Times is a news organization that provides financial and economic news, analysis, and data. It covers global events, markets, and trends, focusing on financial and economic sectors.

Future FinTech Group Inc., through its subsidiaries, operates online shopping platforms in People's Republic of China. It operates in four segments: Shared Shopping Mall Membership Fee, Fruit Related Products, Sales of Goods, and Others. The company operates Chain Cloud Mall (CCM), a real-name blockchain based e-commerce platform that integrates blockchain and internet technology; and NONOGIRL, a cross-border e-commerce platform. It also engages in coal and aluminum ingots supply chain financing and trading; financial technology service; and cryptocurrency market data and information service businesses, as well as services related to the application and development of blockchain-based technology in financial technology. The company was formerly known as SkyPeople Fruit Juice, Inc. and changed its name to Future FinTech Group Inc. in June 2017. Future FinTech Group Inc. is headquartered in New York, New York.

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