Microsoft surprised Wall Street by announcing a $60bn stock-buyback program and a 10% increase in its quarterly dividend, despite concerns about slowing growth in its Azure cloud computing arm. The move comes as the company faces increased competition in the artificial intelligence space. Apple, on the other hand, saw its shares drop following concerns about weak demand for its new iPhone 16. Analysts pointed to lower pre-order sales compared to the previous year, with some attributing it to the gradual rollout of AI features in the new phone. Despite these worries, some analysts believe that the upgrade cycle for the iPhone will eventually pick up in the next year or so.
In other news, Amazon announced that employees will be required to return to the office five days a week starting next year, citing the benefits of in-person collaboration and strengthening company culture. This move comes as the tech industry continues to navigate the challenges presented by the ongoing pandemic. Additionally, Kingfisher reported a drop in like-for-like sales, with weak demand for big-ticket items. This news may have ripple effects across the technology sector, as consumers shift their spending habits. Lastly, a report on UK-EU trade relations showed a sharp decline in goods trade following the implementation of the Brexit trade deal, highlighting ongoing challenges and structural changes in the trading relationship.
Overall, the tech sector and global economy are facing a mix of challenges and opportunities, as companies navigate changing consumer preferences, market dynamics, and regulatory environments.
Source
Photo credit www.theguardian.com
