Finance

America was supposed to be in recession. When the Federal Reserve began to raise interest rates at the fastest pace since the early 1980s, few economists expected the economy to be heading into a presidential election in this state. Indeed, even a few months ago few thought things would be this good. Inflation-adjusted quarterly growth in annualised terms has averaged 2.9% since the start of 2023, above its long-term trend. On October 30th America will publish its GDP figure for this year’s third quarter. According to a usually reliable model from the Atlanta Fed, the economy probably expanded at an annualised pace of 3.3%, nearly twice as high as the median forecast in July, at the start of the quarter. More

There are many technical indicators for traders to choose from. For Carter Worth, there’s one that stands out above all others: volume.
“A lot of charters don’t look at volume. They say it’s all in the price action. … but volume is the essential criteria,” Worth, the founder of Worth Charting with more than three decades on the Street, told CNBC’s Dominic Chu in this special Pro Talks discussion available to all readers. “The study of volume and price volume correlation is the single most important thing one can do if one wants to engage in pattern recognition and studying price action trying to profit in the market.”

“[Philosophers] Camus and Sartre would argue that existence precedes essence, and in markets, volume precedes price,” he added.
(Pro subscribers can watch the full interview here.)
In this interview, Worth talks about:

How his career in finance began
His approach to chart analysis
The importance of a defined time horizon for investors

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In the race to find the next artificial intelligence application, Chinese smartphone company Oppo said it is talking to Google and Microsoft senior management every week about the tech.
“Google will also come to China to ask us, what needs and pain points do you have with your products? Let’s solve them together,” Billy Zhang, president of Oppo’s overseas market, sales and services, said, according to a CNBC translation of his Mandarin-language remarks.
The smartphone company also plans to integrate AI into its factories, which are increasingly automated, Zhang said.

Chinese smartphone company Oppo ranks second in mainland China, and fourth worldwide, according to Canalys.
Nurphoto | Nurphoto | Getty Images

BEIJING — Chinese smartphone company Oppo is doubling down on artificial intelligence as it holds weekly talks about AI with senior management at Google and Microsoft in the run-up to the launch of its flagship phone overseas.
The collaborations are part of the race to find the next artificial intelligence application. The rise of generative AI — tech that can produce human-like responses when prompted — has companies from Apple to Honeywell rushing to tap its capabilities.

“Google will also come to China to ask us, what needs and pain points do you have with your products? Let’s solve them together,” Billy Zhang, president of Oppo’s overseas market, sales and services, told reporters last week at the company’s office in the southern Chinese city of Shenzhen. That’s according to a CNBC translation of his Mandarin-language remarks.
“We know consumers’ needs, and we will use AI to satisfy [them],” Zhang said. The company is expanding further in Europe, but does not have immediate plans for the U.S., he said.
Oppo, which owns the OnePlus brand too, said it derives around 60% of its revenue from Southeast Asia, Europe and other overseas markets. The company ranked fourth globally in terms of smartphone shipments in the third quarter, making up 9% of all units shipped, according to Canalys. Samsung and Apple were tied for the first spot, followed by Xiaomi.

While the U.S. leads in terms of AI capabilities, experts suggest Chinese companies will have an edge when it comes to consumer applications of the tech. That’s despite U.S. restrictions on exports of high-end chips to China.
Oppo has said its forthcoming flagship smartphone will be equipped with AI writing and recording summary tools from Google’s Gemini, and content generation features from Microsoft. Microsoft employs OpenAI products such as ChatGPT.

It was not immediately clear to what extent existing Oppo models use AI tools from the two tech companies. Oppo has yet to announce when its flagship phone will be available globally.

AI smartphones set for growth

Oppo in June announced it plans to integrate generative AI in 50 million of its devices this year. Its existing AI tools allow touching up photos — such as removing window reflections. Oppo also has a ChatGPT-like bot.
In addition to partnerships, Oppo said it has developed its own AI models since 2020 and opened an AI center in February.
“We are very optimistic about AI and have invested with great determination,” Zhang said. “AI is the most important area for tech in the future. All industries can be transformed by AI.”
Counterpoint Research predicts shipments of generative AI smartphones will skyrocket to 732 million in 2028 from 46 million last year, according to a whitepaper published Wednesday. The report did not specify how complex those generative AI features would be.
Apple next week is due to publicly release its first software update with AI tools. A subsequent update will allow removing unwanted elements in photos, and integration with ChatGPT, the iPhone maker said Wednesday.
Chinese smartphone company Honor on Wednesday revealed the next version of its operating system that can use AI to mimic actions on a touchscreen, such as opening an app to order coffee delivery.

Tech for production efficiency

Oppo plans to integrate AI into its factories, which are increasingly automated, Zhang said. “Today, automation improves quality and stability, lowers production costs and increases unit yield.”
At a production line for an entry-level smartphone in Dongguan, near Shenzhen, Oppo has this year replaced about 8% of the workers with machines, and moved those employees to work on more complex, higher-end phones.
Other companies have announced plans to integrate generative AI with the industrial sector. Honeywell this week announced a deal with Google’s Gemini to create AI assistants for factory workers and systems.
Oppo is rolling out its digital management system to its factories in seven other countries, starting with India and Indonesia. The company also produces phones in Turkey, Pakistan, Bangladesh, Brazil and Egypt.
“Since our manufacturing process is largely digitalized and standardized, growing and expanding to global markets is much easier,” Danny Du, director of manufacturing management at Oppo told CNBC.
Oppo has cut its manufacturing costs by nearly 40% over three years, Du said, adding that technological integration with factory machines and systems has cut production time to six days, from 16. He said that allows Oppo to respond more quickly to market orders, instead of relying on longer-term forecasts that come with the risk of unsold inventory.
— CNBC’s Kif Leswing and Eric Rosenbaum contributed to this report. More

Arriving in Stepford, Connecticut, Joanna—protagonist of “The Stepford Wives”, a horror novel—is dragged to a “workout class” at the Simply Stepford Day Spa by a neighbour. The duo are met by 15 identikit women. Their hair, heights and skin colours differ a little. Their waist sizes do not. Each can be no bigger than a British size 8, their waists nipped in by belts and accentuated by 1950s skirts. More

Shareholders are enjoying one of their best runs in history. Since a trough last October the S&P 500 index of large American firms has risen by more than 40%; peers in Europe, Japan and Canada have all gone up by at least half as much. The fears of last year, that stubborn inflation would prevent central banks from cutting interest rates, keeping bond yields high and dragging share prices down, have all but vanished. In fact, many of the world’s monetary guardians have been slashing borrowing costs just as corporate profits have climbed and animal spirits have surged. The result is that plenty of stockmarkets are now hovering near all-time highs. More

Arriving on the magical continent of Teyvat, you and your twin are attacked and separated by an unwelcoming god. When you regain consciousness, you set off in search of your lost sibling, exploring seven beguiling worlds (one of which resembles a Chinese national park). Along the way you team up with other heroes, blessed with elemental powers. One can cross lakes by freezing the water beneath his feet. Another can float on air currents of his own creation. Together, your travelling party must fight monsters, solve puzzles and plunder treasure chests. More

Apple and Goldman Sachs were fined more than $89 million for mishandling consumer disputes of Apple Card transactions, the Consumer Financial Protection Bureau said Wednesday.
The bureau also banned Goldman Sachs from launching new credit cards unless it can provide an adequate plan to comply with the law.
The fines are tied to allegations that Apple and Goldman Sachs misled consumers about the interest-free payment plans for Apple devices.

Apple CEO Tim Cook introduces the Apple Card during a launch event at the Apple headquarters in Cupertino, California, on March 25, 2019.
Noah Berger | AFP | Getty Images

The Consumer Financial Protection Bureau ordered Apple and Goldman Sachs on Wednesday to pay more than $89 million for mishandling consumer disputes related to Apple Card transactions.
The bureau said Apple failed to send tens of thousands of consumer disputes to Goldman Sachs. Even when Goldman Sachs did receive disputes, the CFPB said the bank did not follow federal requirements when investigating the cases.

Goldman Sachs was ordered to pay a $45 million civil penalty and $19.8 million in redress, while Apple was fined $25 million. The bureau also banned Goldman Sachs from launching new credit cards unless it can provide an adequate plan to comply with the law.
“Apple and Goldman Sachs illegally sidestepped their legal obligations for Apple Card borrowers. Big Tech companies and big Wall Street firms should not behave as if they are exempt from federal law,” said CFPB Director Rohit Chopra.
Apple Card was first launched in 2019 as a credit card alternative, hinged on Apple Pay, the company’s mobile payment and digital wallet service. The company partnered with Goldman Sachs as its issuing bank, and advertised the card as more simple and transparent than other credit cards.
That December, the companies launched a new feature that allowed users to finance certain Apple devices with the card through interest-free monthly installments.
But the CFPB found that Apple and Goldman Sachs misled consumers about the interest-free payment plans for Apple devices. While many customers thought they would get automatic interest-free monthly payments when they bought Apple devices with an Apple Card, they were still charged interest. Goldman Sachs did not adequately communicate to consumers about how the refunds would work, which meant some people ended up paying additional interest charges, according to the CFPB.

It also meant some consumers had incorrect credit reports, the agency said.
“Apple Card is one of the most consumer-friendly credit cards that has ever been offered. We worked diligently to address certain technological and operational challenges that we experienced after launch and have already handled them with impacted customers,” Nick Carcaterra, vice president of Goldman Sachs corporate communications, told CNBC. “We are pleased to have reached a resolution with the CFPB and are proud to have developed such an innovative and award-winning product alongside Apple.”
Apple said it worked closely with Goldman Sachs to address the issues when it learned about them.
“While we strongly disagree with the CFPB’s characterization of Apple’s conduct, we have aligned with them on an agreement,” an Apple spokesperson said. “We look forward to continuing to deliver a great experience for our Apple Card customers.”
— CNBC’s Hugh Son and Steve Kovach contributed to this report.

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Rohit Chopra, director of the Consumer Financial Protection Bureau, will speak Wednesday at DC Fintech Week in Washington, D.C.

The bureau finalized its personal financial data rights rule on Tuesday, a measure that would require financial services firms to unlock an individual’s personal financial data and then transfer it for free to another provider at the request of the customer.
The rule would apply to data associated with a range of products, spanning from bank accounts and credit cards to payment apps and mobile wallets. The bureau said it would also allow customers to comparison shop more easily for favorable rates on deposits or credit.
“By allowing consumers to permission their personal financial data, and make it over time more seamless, people can more easily sign up, switch accounts and take their financial history with them,” Chopra said Tuesday in prepared remarks at the Federal Reserve Bank of Philadelphia.
The CFPB’s new rule garnered mixed reviews from trade groups. The American Bankers Association raised concerns around data security, while the Financial Technology Association — whose members include Plaid and PayPal — said the regulation “will increase competition, improve consumers’ choices, and drive momentum for future innovations that benefit customers.” More