Author: openjargon

  • Tax-busters: 5 fully-franked ASX dividend shares I’d buy for FY25

    Five happy young friends on the coast, dabbing and raising their arms in the air.

    We’re now well into the month of June. That means many things… cold weather, short days, and end-of-financial-year sales. Maybe even a late payout from one of your ASX dividend shares. But it also means it’s nearly tax time.

    Yep, from 1 July, you can lodge your tax return for the 2024 financial year. Getting your taxes in line is a task that most of us probably don’t exactly look forward to.

    Hopefully, most readers will have a big refund coming their way. In the spirit of this time of year, it’s a great opportunity to think about some ASX shares you can buy if you wish to beef up your franking credit balance.

    As most dividend investors would know, franking credits are a major tax perk of owning ASX shares. They enable us to claim a tax deduction for the corporate taxes our companies have already paid on the dividends they dole out to us.

    Because of this transfer effect, these ‘tax-busting’ franking credits can make a significant impact on both our tax returns and overall wealth.

    So, with that in mind, there are five ASX dividend shares that I would happily buy over the coming 2025 financial year that all tend to pay healthy and fully franked dividends.

    5 fully-franked ASX dividend shares I’d buy to bust my taxes

    Telstra Group Ltd (ASX: TLS)

    First up is ASX 200 telco Telstra. Telstra has a long and well-known history of paying large, fully-franked dividend payments to its shareholders. This has continued over the past few years, with Telstra raising its most recent dividends pretty consistently.

    This is a strong company with a solid financial foundation, thanks to Telstra’s dominance of both the mobile and fixed-line internet market in Australia. And that makes for a good investment from a dividend perspective.

    Today, investors can expect a hefty dividend yield of around 5% if they buy Telstra stock at recent pricing.

    Woolworths Group Ltd (ASX: WOW)

    I have historically favoured Coles Group Ltd (ASX: COL) shares over arch-rival Woolworths when it comes to dividend income. However, the tables have turned a little in 2024, thanks to a significant drop in the Woolworths share price over the past 12 months.

    I like Woolies as a dividend investment for similar reasons to Telstra: a mature business model, and a defensive earnings base.

    Because Woolworths sells us goods that we need — rather than want — to buy, the company has a boosted capacity to pay out passive income in all forms of economic weather.

    At recent pricing, you could nab a fully-franked dividend yield of 3.22% from Woolworths shares.

    Westpac Banking Corp (ASX: WBC)

    It wouldn’t be a ‘best dividend shares’ list without at least one ASX bank stock. Our big four banks enjoy some unique benefits from an investing standpoint, including government support and a loyal customer base.

    Normally, my pick of the banks right now would be National Australia Bank Ltd (ASX: NAB). However, if one was prioritising dividend income, Westpac might be a better option to consider today.

    This bank is currently trading on a chunky dividend yield of 5.49%. Unlike ANZ Group Holdings Ltd (ASX: ANZ) stock, Westpac’s dividends still come with full franking credits attached too.

    BHP Group Ltd (ASX: BHP)

    Like the ASX banks and Telstra, BHP is a renowned source of dividends on the ASX. The ‘Big Australian’ has been paying out hefty, fully franked dividends for generations.

    Unlike most resources stocks, BHP has a rather diversified earning base, with the company having significant operations in iron ore, copper, potash and nickel.

    Although most resources stocks tend to pay cyclical dividends, this diversified earnings base gives BHP significant wiggle room compared to some of its rivals.

    BHP stock was recently trading on a fully franked dividend yield of 5.45%.

    Woodside Energy Group Ltd (ASX: WDS)

    ASX 200 oil and energy stock Woodside is our final dividend share to discuss. Woodside is the largest oil stock on the ASX, and a global giant. It has some of the lowest oil and gas production cost bases on the Australian markets.

    Since it only deals in energy commodities, Woodside doesn’t have that diversified earnings base that lends stability to its dividend.

    Even so, I think it’s a great option for income-hungry investors, because when oil and gas prices are high, Woodside tends to shower its investors with dividend cash.

    At last pricing, Woodside was trading with a fully franked dividend yield of 7.92%.

    The post Tax-busters: 5 fully-franked ASX dividend shares I’d buy for FY25 appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bhp Group right now?

    Before you buy Bhp Group shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bhp Group wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Sebastian Bowen has positions in National Austalia Bank and Telstra Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Hybrid workers are happier and just as productive as office workers, new study says

    hybrid work
    Workers really can have it all — working from home and the office doesn't seem to impact productivity or performance.

    • Hybrid work boosts job satisfaction, a study published in Nature found.
    • And productivity loss in hybrid work was negligible.
    • Hybrid work also fosters employee well-being and benefits businesses like cafes and gyms.

    One of the greatest debates of the post-pandemic age is whether hybrid work is the best — or worst — of both worlds.

    Advocates of hybrid work say it helps them achieve a better work-life balance and is more engaging. Studies show it has also boosted women's participation in the labor force. Employers, meanwhile, worry that it lowers employee productivity and collaboration.

    A new study published in Nature could end the debate. It suggests that productivity concerns are negligible and that hybrid work really could be the ideal setup for workers.

    The study divided more than 1,600 employees of Trip.com, a Chinese travel agency, into two groups and tracked them for two years. One group worked from the office five days a week, while the other spent three days in the office and two days at home.

    The latter group showed improved job satisfaction. The rate at which these employees quit also reduced by a third, with the impact especially pronounced on employees who weren't managers, females, and those with long commutes.

    There weren't really any downsides. The study found that hybrid work didn't have a measurable impact on workers' performance or productivity. Managers, too, were more supportive of it after participating in the study.

    The authors concluded that hybrid work can boost companies' profits by reducing quit rates "estimated to cost about 50% of an individual's annual salary." It also "offers large gains for society by providing a valuable amenity (perk) to employees, reducing commuting and easing child-care."

    It can also be a boon to businesses like cafés, bars, gyms, and beauty salons — all of which have seen increased earnings due to the work-from-home economy.

    Read the original article on Business Insider
  • Taylor Swift’s longtime ex-boyfriend Joe Alwyn breaks his silence a year after their split, asks for empathy

    joe alwyn
    Joe Alwyn in May 2022.

    • Joe Alwyn spoke about his relationship with Taylor Swift to The Sunday Times.
    • Alwyn said the end of their relationship was a "hard thing to navigate."
    • Swift and Alwyn dated for six years before breaking up in 2023.

    Joe Alwyn, speaking openly about his breakup with Taylor Swift for the first time, urged fans to have some empathy.

    Alwyn, 33, and Swift, 34, dated for six years before their split in April 2023. The breakup became a hot topic on social media, where Swifties shared fan theories and analyzed Swift's lyrics for subtle nods to Alwyn.

    The release of Swift's latest album — "The Tortured Poets Department" — launched another round of fan speculation as some fans thought the song "So Long, London" was about Alwyn.

    Taylor Swift in a white dress and white lace-up boots performs on stage
    Taylor Swift in Paris.

    Alwyn, an actor, shared his thoughts on the topic for the first time in an interview with The Sunday Times on Saturday. When asked if he's listened to the album, Alwyn acknowledged the difficulties of ending a long-term relationship in the public eye.

    "I would hope that anyone and everyone can empathize and understand the difficulties that come with the end of a long, loving, fully committed relationship of over six and a half years," he said.

    He said the end of their relationship was a "hard thing to navigate."

    "What is unusual and abnormal in this situation is that, one week later, it's suddenly in the public domain and the outside world is able to weigh in," he added.

    Alwyn told the Times that he had made his "peace" with misconceptions surrounding their split, especially after the couple had gone to great lengths to keep their relationship private.

    "As everyone knows, we together — both of us, mutually — decided to keep the more private details of our relationship private. It was never something to commodify and I see no reason to change that now," he said. "And, look, this is also a little over a year ago now and I feel fortunate to be in a really great place in my life, professionally and personally. I feel really good."

    Representatives for Swift did not immediately respond to Business Insider's request for comment.

    Following her split with Alwyn, Swift briefly dated 1975 frontman Matty Healy before starting a relationship with Travis Kelce, a tight end for the Kansas City Chiefs.

    The 2023 announcement of her breakup with Alwyn came shortly after her renowned "Eras Tour" began, prompting heightened speculation and scrutiny of her performances by her fans.

    The tour cemented her reign over the music industry while catapulting her — and practically everything she touches — to a new level of economic power.

    Between her tour and her movie, she injected billions into the US economy last year, while her highly publicized relationship with Kelce caused NFL viewership to skyrocket.

    Read the original article on Business Insider
  • Why OpenAI is getting harder to trust

    A composite photo of OpenAI CEO Sam Altman (left), Edward Snowden (middle), and former NSA head Paul Nasokone (right).
    A composite photo of OpenAI CEO Sam Altman, Edward Snowden, and former NSA head Paul Nakasone.

    • OpenAI appointed former NSA Director Paul Nakasone to its board of directors.
    • Nakasone's hiring aims to bolster AI security but raises surveillance concerns.
    • The company's internal safety group has also effectively disbanded.

    There are creepy undercover security guards outside its office. It just appointed a former NSA director to its board. And its internal working group meant to promote the safe use of artificial intelligence has effectively disbanded.

    OpenAI is feeling a little less open every day.

    In its latest eyebrow-raising move, the company said Friday it had appointed former NSA Director Paul Nakasone to its board of directors.

    In addition to leading the NSA, Nakasone was the head of the US Cyber Command — the cybersecurity division of the Defense Department. OpenAI says Nakasone's hiring represents its "commitment to safety and security" and emphasizes the importance of cybersecurity as AI continues to evolve.

    "OpenAI's dedication to its mission aligns closely with my own values and experience in public service," Nakasone said in a statement. "I look forward to contributing to OpenAI's efforts to ensure artificial general intelligence is safe and beneficial to people around the world."

    But critics worry Nakasone's hiring might represent something else: surveillance.

    Edward Snowden, the US whistleblower who leaked classified documents about surveillance in 2013, said in a post on X that the hiring of Nakasone was a "calculated betrayal to the rights of every person on Earth."

    "They've gone full mask-off: do not ever trust OpenAI or its products (ChatGPT etc)" Snowden wrote.

    In another comment on X, Snowden said the "intersection of AI with the ocean of mass surveillance data that's been building up over the past two decades is going to put truly terrible powers in the hands of an unaccountable few."

    Sen. Mark Warner, a Democrat from Virginia and the head of the Senate Intelligence Committee, on the other hand, described Nakasone's hiring as a "huge get."

    "There's nobody in the security community, broadly, that's more respected," Warner told Axios.

    Nakasone's expertise in security may be needed at OpenAI, where critics have worried that security issues could open it up to attacks.

    OpenAI fired former board member Leopold Aschenbrenner in April after he sent a memo detailing a "major security incident." He described the company's security as "egregiously insufficient" to protect against theft by foreign actors.

    Shortly after, OpenAI's superalignment team — which was focused on developing AI systems compatible with human interests — abruptly disintegrated after two of the company's most prominent safety researchers quit.

    Jan Leike, one of the departing researchers, said he had been "disagreeing with OpenAI leadership about the company's core priorities for quite some time."

    Ilya Sutskever, OpenAI's chief scientist who initially launched the superalignment team, was more reticent about his reasons for leaving. But company insiders said he'd been on shaky ground because of his role in the failed ouster of CEO Sam Altman. Sutskever disapproved of Altman's aggressive approach to AI development, which fueled their power struggle.

    And if all of that wasn't enough, even locals living and working near OpenAI's office in San Francisco say the company is starting to creep them out. A cashier at a neighboring pet store told The San Francisco Standard that the office has a "secretive vibe."

    Several workers at neighboring businesses say men resembling undercover security guards stand outside the building but won't say they work for OpenAI.

    "[OpenAI] is not a bad neighbor," one said. "But they're secretive."

    Read the original article on Business Insider
  • What is the outlook for CBA shares in FY25?

    A man in a suit smiles at the yellow piggy bank he holds in his hand.

    The Commonwealth Bank of Australia (ASX: CBA) share price has risen by close to 30% in the past year, as shown on the chart below. After such a strong year, investors may be wondering whether the ASX bank share can go on another run.

    The focus on inflation and interest rates has dominated discussions regarding banks in the last couple of years. The performance of CBA’s net interest margin (NIM) and loan arrears could be key moving forward into the 2025 financial year.

    Keep in mind that CBA’s FY25 first half involves the last six months of the 2024 calendar year.

    First, we’ll examine how the bank sees the outlook.

    Challenges are building

    When CBA released its FY24 third quarter update, the CEO Matt Comyn said:

    We have continued to focus on supporting our customers and communities, investing for the future and providing strength and stability for the broader economy. We know that many Australians are feeling under pressure due to a higher cost of living, and we are here to support those customers that need our help.

    We have continued to strengthen our balance sheet to ensure we remain well positioned to support our customers, communities, and economy. All Australians benefit from strong and stable banks.

    The fundamentals of the Australian remain sound. Unemployment remains low, supported by business and government investment and elevated terms of trade. We recognise that all households are feeling the impact of higher inflation and higher rates, however immigration is providing a structural tailwind for the economy.

    So, while the overall picture is still solid, there are pockets of weakness, though CBA is confident it can navigate any difficulties. which could mean good news for CBA shares.

    Arrears do seem to be building at the bank – the ratio of home loans that were at least 90 days overdue was 0.43% at December 2022, 0.47% at June 2023, 0.52% at December 2023, and 0.61% at March 2024.

    In the third quarter update, CBA said it expects to see “further increases in arrears in the months ahead given continued pressure on real household disposable incomes”.

    In terms of the NIM, CBA reported an 11 basis point decline to 1.99% in the HY24 result because of continued competitive pressures and higher funding costs.

    Analyst views on CBA shares

    The broker UBS recently noted CBA may see a softer fourth quarter on the revenue front, with CBA showing “good cost disciplined and management”, though there has been a “visible deterioration” in asset quality metrics.

    UBS notes CBA is leaning on its own distribution channels to defend and drive volume growth in mortgages, a strategy that has seen CBA grow at 0.7 times the rate of Australia’s loan system.

    The broker believes defending its ‘back book’ profitability remains a “key imperative” for management.

    UBS has made a number of forecasts for CBA shares in FY25.

    The broker has forecast CBA can generate $27.2 billion of revenue, $13.6 billion of pre-tax profit and $9.8 billion of net profit after tax (NPAT).

    In terms of the dividend, UBS thinks CBA shares will have a fully franked dividend yield of 3.5%.

    UBS has a price target on CBA shares of $105, implying the bank could drop by well over 10% in the next 12 months.

    The post What is the outlook for CBA shares in FY25? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Commonwealth Bank Of Australia right now?

    Before you buy Commonwealth Bank Of Australia shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Commonwealth Bank Of Australia wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Nearly 90% of House Republicans voted to restore a Confederate memorial at Arlington National Cemetery

    Confederate Memorial
    The Confederate Memorial at Arlington National Cemetery in December 2023, shortly before its removal.

    • House Republicans overwhelmingly sought to restore a Confederate memorial to Arlington Cemetery.
    • But the measure failed as 24 Republicans joined every Democratic lawmaker in rejecting the effort.
    • The Confederate memorial was removed from the cemetery last December and is currently in storage.

    House Republicans were unsuccessful in their effort to reinstall a Confederate memorial to Arlington National Cemetery after two dozen members joined Democrats in rejecting the measure.

    The amendment was backed by 192 Republicans — or nearly 90% of the House GOP — while 24 Republican lawmakers rejected the measure.

    Supporters of the amendment included Speaker Mike Johnson of Louisiana, Majority Whip Steve Scalise of Louisiana, and House Republican Conference chair Elise Stefanik of New York.

    Rep. Byron Donalds of Florida — a high-profile Black conservative who earlier this month argued that "the Black family was together" during the Jim Crow era — voted for the amendment. Reps. Wesley Hunt of Texas and Burgess Owens of Utah, two other prominent Black conservatives on Capitol Hill, also supported it.

    The amendment, authored by GOP Rep. Andrew Clyde of Georgia, was part of the 2024 National Defense Authorization Act.

    No Democratic lawmaker voted in favor of restoring the memorial.

    Last December, the memorial was removed from Arlington National Cemetery as part of a push to rethink military installations named after Civil War-era Confederate leaders.

    The removed memorial is a 32-foot bronze statue that includes imagery of an enslaved Black woman — which the cemetery website said was a depiction of a "Mammy" carrying the infant child of a White Confederate officer — along with an enslaved Black man who is following his Confederate owner to the battlefield.

    The memorial, designed by the sculptor and Confederate veteran Moses Jacob Ezekiel, was placed in the cemetery in 1914 — nearly 50 years after the end of the Civil War.

    The depiction of "Black Mammies" was a stereotypical one, where enslaved Black women were depicted as being content with their predicament.

    House Minority Leader Hakeem Jeffries of New York on Friday blasted the GOP lawmakers who supported the amendment.

    "What tradition are extreme MAGA Republicans … upholding? What Confederate tradition are you upholding? Is it slavery? Rape? Kidnap? Jim Crow? Lynching? Racial oppression? Or all of the above?" he said during a Capitol Hill press conference.

    The current debate comes four years after the death of George Floyd at the hands of Minneapolis police and the following national racial reckoning. Protests against racial injustice swept the country at the time, and many lawmakers sought to shepherd through reforms aimed at tackling racial discrimination and disparities in everything from health care to education.

    But many Republicans in the intervening years have pushed back against the mostly Democratic efforts to remedy past racial discrimination, buoyed by former President Donald Trump's campaign and the Supreme Court's 2023 ruling that effectively ended affirmative action in college admissions.

    Read the original article on Business Insider
  • 3 reasons to be positive on ASX 200 shares in FY25 (and 3 to be wary)

    A man holding a cup of coffee puts his thumb up and smiles while at laptop.

    Vinay Ranjan from Airlie Funds Management says investors should ignore industry predictions for where ASX 200 shares might go in the new financial year and instead simply focus on buying quality companies.

    Ranjan says attempting to profit from the market’s short-term ups and downs “is likely to detract from returns rather than add to them”.

    He points out that despite all the challenges for the S&P/ASX 200 Index (ASX: XJO) over the past five years, the market has had an upward trajectory, albeit not in a straight line.

    First came the pandemic, then the war in Ukraine, then a surge in worldwide inflation, the fastest interest rate hiking cycle in Australia’s history, and now the Middle East conflict.

    Through all of that, global equity markets have risen, Ranjan says.

    The S&P/ASX 200 Accumulation Index (which includes dividends) has delivered a total return of 47%, or 8% per annum over the five years to 3 May. 

    Indeed, some ASX 200 shares have shot the lights out over the past five years.

    They include Boss Energy Ltd (ASX: BOE), up 8,180% and Neuren Pharmaceuticals Ltd (ASX: NEU), up 1,581%.

    There’s also Pro Medicus Limited (ASX: PME), up 450%, and Pilbara Minerals Ltd (ASX: PLS), up 391%.

    Several ASX 200 stalwarts have done well, too. Fortescue Ltd (ASX: FMG) shares are up by 164%, and Macquarie Group Ltd (ASX: MQG) and Commonwealth Bank of Australia (ASX: CBA) are up by 56% and 57%, respectively.

    In the United States, the S&P 500 Index (SP: .INX) has risen by more than 88% over five years. The stand-out stocks include Nvidia Corp at 3,480%, Tesla Inc at 1,173%, and Apple Inc at 345%.

    In a blog published on asx.com.au, Ranjan says:

    In Airlie’s view, the past five years have shown that buying and selling stocks based on a view of the market’s impending movements is a fool’s game.

    … we believe investing in companies with strong balance sheets, and that are market leaders with pricing power, may help drive returns over the long term. 

    So, instead of offering predictions as to how many points the ASX 200 may gain or lose next year, Ranjan offers three reasons to be bullish and three reasons to be bearish on ASX 200 shares in FY25.

    Bull case for ASX 200 shares in FY25

    Corporate balance sheets in good shape

    Airlie’s view is that the balance sheets of ASX 200 shares generally look “healthy”.

    Ranjan says the leverage ratio of industrial companies today vs. previous economic cycles is less than 1.0x Net Debt/EBITDA.

    He comments:

    Airlie considers this suggests that Australia’s largest companies could be well placed to handle any adverse bumps the economic cycle, competitors or internal issues may throw at them. 

    Oligopolies among ASX 200 shares

    Several industry oligopolies with substantial barriers to entry are among the ASX 200 shares. Australia’s smaller population means industry profit pools often cannot support a third or fourth entrant.

    Examples include Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL), Qantas Airways Limited (ASX: QAN), and the big four ASX 200 bank shares.

    Ranjan commented: “Historically these businesses tend to have a track record of stable returns and market-share gains versus their smaller rivals.”  

    Australia’s place in the world is only getting better

    Ranjan says Australia continues to attract people and capital, both of which provide long-term tailwinds for the economy.

    Bearish factors for ASX 200 shares in FY25

    Valuations have re-rated higher

    In Airlie’s view, higher company valuations reduce the prospect of near-term upside for investors.

    Ranjan says ASX 200 shares are unlikely to go much higher until it’s clear that interest rates have peaked.

    ASX 200 shares are currently trading at a price-to-earnings (P/E) ratio of 16.7x. This is well above the median long-term average of 14.6x.

    High cost of living is gaining political attention 

    Airlie views the recent inquiries into supermarket grocery prices as potentially just the start of things to come for the oligopolies among ASX 200 shares.

    Ranjan says:

    Airlie would not be surprised if the government turned its attention to other concentrated sectors, so as to be seen to be tackling the cost-of-living crisis.

    Even if there is no immediate change to regulation of these sectors, Airlie has seen this kind of political pressure hurt returns as companies respond by pulling back on pricing power. 

    Sticky inflation

    Airlie thinks the optimism embedded in the valuations of ASX 200 shares assumes we’re at the peak with interest rates.

    If inflation proves stickier than expected, this “may lead investors to reprice securities lower to reflect a higher cost of capital”, Ranjan said.

    To date, the Australian economy has been strong with elevated migration and record-low unemployment supporting demand. And on the supply side, the cost of the energy transition and the restructuring of global trade (away from China) could continue to act as inflationary forces that may well be structural. 

    The post 3 reasons to be positive on ASX 200 shares in FY25 (and 3 to be wary) appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Boss Resources Limited right now?

    Before you buy Boss Resources Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Boss Resources Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Bronwyn Allen has positions in Commonwealth Bank Of Australia and Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Macquarie Group, Nvidia, Pro Medicus, and Tesla. The Motley Fool Australia has positions in and has recommended Coles Group and Macquarie Group. The Motley Fool Australia has recommended Apple, Nvidia, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Meta says it won’t release its AI assistant in Europe because EU regulations will make it ‘second rate’

    Meta's logo is seen with a European flag in the background.
    Meta continues to face roadblocks in the EU.

    • Meta said it won't launch its AI assistant in Europe following pushback from regulators.
    • Regulators raised privacy concerns about Meta's plan to scrape user data to train its AI.
    • But Meta says that data is essential to offer a useful product.

    Meta is taking a "my way or the highway" approach with its generative AI product.

    Meta announced Friday it won't release its AI features in Europe because the EU's stringent privacy regulations would make it a "second-rate experience."

    Meta said in a press release that it was "disappointed" by the Irish Data Protection Commission's (DPC) request to "delay training our large language models (LLMs) using public content shared by adults on Facebook and Instagram," calling it a "step backward for European innovation."

    "We are committed to bringing Meta AI, along with the models that power it, to more people around the world, including in Europe. But, put simply, without including local information we'd only be able to offer people a second-rate experience. This means we aren't able to launch Meta AI in Europe at the moment," the company said.

    European regulators don't seem all that torn up about it. In fact, they welcomed the announcement.

    "The DPC welcomes the decision by Meta to pause its plans to train its large language model using public content shared by adults on Facebook and Instagram across the EU/EEA," the commission said in a press release on Friday, referring to the European Union and the European Economic Area.

    Meta has faced heightened scrutiny in Europe over its plans to use public content from its apps to train its AI. Earlier this month, a European advocacy group called for a halt to Meta's data scraping plans, saying the company would use "years of personal posts, private images, or online tracking data" to train its AI.

    Read the original article on Business Insider
  • German chancellor says it’s ‘very likely’ that President Joe Biden could win a second term

    German Chancellor Olaf Scholz (L) and US President Joe Biden (R)
    Olaf Scholz and Joe Biden.

    • German chancellor Olaf Scholz said it's "very likely" Joe Biden could be reelected in November.
    • Scholz dismissed the idea that Biden was too old.
    • Scholz also touched on Russian President Vladimir Putin's new demands to end the Ukraine war.

    German chancellor Olaf Scholz believes it is "very likely" that President Joe Biden could be reelected in November.

    Biden has "pursued a policy that has led to proper economic development in the country, that has helped to ensure that peace and security are in good hands and that the US is actually playing its role in the world," Scholz said in an interview with Axel Springer media outlets.

    Business Insider is owned by Axel Springer.

    "I think it's a bit strange how people in this country are speculating about who will win the next American election. I think it is very likely that the current president could win the election," said the German leader.

    "He is committed to togetherness and cohesion in his country," Scholz added.

    Biden has faced concerns over his age and mental fitness. But the German chancellor dismissed such worries, saying the president is "very clear."

    He is "one of the most experienced politicians in the world, especially when it comes to international politics," Scholz said.

    "I can only say that this is a man who knows exactly what he is doing," he added.

    The German chancellor was speaking ahead of a Ukraine peace conference set to be held in Switzerland.

    In a new poll by Reuters/Ipsos, 41% of registered voters said they would vote for Trump if the election were held now, while 39% said they'd vote for Biden.

    However, the survey had a roughly three-percentage-point margin of error for registered voters, Reuters says, noting that a survey from the end of May showed Biden with a two-percentage-point lead over Trump.

    Donald Trump
    Trump speaks after hush-money trial conviction.

    On Friday, Russian President Vladimir Putin said the war in Ukraine would only end if Kyiv agreed to do away with its hopes for NATO entry and give up the four Ukrainian regions claimed by Moscow.

    Scholz said that the offer did not seem serious: "There can only be a peace that works for Ukraine and does not compromise its integrity and sovereignty. There cannot be a peace dictated by Russia."

    Scholz also underlined the importance of the G7's decision to lend Ukraine $50 billion using frozen Russian assets.

    "I think this is a message to Ukraine that it can count on us. But it is also a message to Putin that he should not rely on the fact that he just has to wait long enough and then support for Ukraine will fade away," he added.

    Read the original article on Business Insider
  • Woman airlifted out of the Grand Canyon as dozens of hikers get sick from unnamed illness

    Havasu Falls in the Grand Canyon.
    Havasu Falls in the Grand Canyon.

    • Dozens of people got sick this month at Havasupai Falls in Grand Canyon National Park.
    • Tourists experienced vomiting, diarrhea, and fever symptoms.
    • Officials said people in the northern Arizona region are experiencing "a gastrointestinal illness."

    Dozens of tourists who hiked to a waterfall in the Grand Canyon have fallen ill, including one woman who had to be airlifted out of the national park.

    The illnesses broke out near Havasu Falls in the Havasupai Indian Reservation in Arizona this week. Mary Blair told Fox 10 that her family was finishing a four-day hike in the area when her son became sick.

    "He was throwing up and having diarrhea all night long. I got him in the river. We were in there at midnight, 1 o'clock, just to lower his body temperature," she told the outlet.

    Blair said she later learned her son wasn't the only person struck by illness that night. She told the outlet her family decided to leave the canyon via helicopter and discovered other groups along the way.

    "On the way up, all of us were passing people who are throwing up and that's when I was like, what the heck is going on?" she said. "There's probably 60–70 people down the line. There are multiple people throwing up."

    Havasu Falls, waterfalls in the Grand Canyon, Arizona
    Havasu Falls.

    Another tourist, Maylin Griffiths, told a local CBS affiliate she and her friends were hiking in the area when she experienced fever-like symptoms, including a 104° temperature. Griffiths had to be airlifted out of the canyon.

    "We were violently ill. They were able to admit us to the clinic there because they considered it life-threatening," she told the outlet.

    The Havasupai Tribal Council acknowledged the recent illnesses in a press release on Friday, describing it as "gastrointestinal symptoms."

    The council said it held meetings with local health officials, who determined that the symptoms are affecting people across the northern Arizona region. Not just the Havasupai campground.

    "The Tribe is working with IHS and other state agencies to further investigate the illness and to take measures to prevent further spreading of the illness not only to campers but to local tribal members," the council said.

    The exact cause of the illnesses hasn't been disclosed, but Coconino County shared a health advisory on Wednesday.

    "Gastrointestinal illness caused by a virus can spread in settings where people come in close contact with each other and when good hand hygiene is not practiced," the statement said. "These types of outbreaks can be ongoing if appropriate safeguards are not in place."

    A county spokesperson told the Associated Press that hikers should take precautions, including monitoring early signs of norovirus. Norovirus, or "stomach flu," can cause vomiting and other symptoms.

    Representatives for the Arizona Department of Health Services and Indian Health Services did not respond to Business Insider's request for comment.

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