What to Xpect

In a news cycle that isn’t exactly slow, X (formerly Twitter) keeps making headlines. Over the past few weeks, X has seen more than 200 advertisers — including Apple, Disney and IBM — halt their ad spending. The move comes after owner Elon Musk’s recent endorsement of an antisemitic conspiracy theory, adding to X’s year of tumult and transformation. Musk had some choice words for these exiting advertisers, even hinting their extended boycott could bankrupt X.

So, what exactly does this mean for advertising on X? It’s mission-critical to ask some questions before starting a campaign.

• Is this safe for our brand? The platform has been largely destabilized under Musk’s ownership, which presents risks to brand safety and reputation. With less internal support and advertising oversight, some advertisers have unwittingly seen their ads next to racist and/or pro-Nazi content.

• What is the return on your investment? The platform’s relationship with advertisers has suffered as fewer people visit and engage with X content. Ads on X can look clunky, uninteresting and even spammy or fraudulent.

• Could ads on other platforms be effective? X is not the only place to consider for ad efficacy. LinkedIn, Facebook, and Instagram may often offer significant cost savings and more reach for your dollar.

There is no one answer here, as not all major ad players (i.e., sports leagues/fans) are leaving. But caution remains key on X, advertising or otherwise.
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The current leadership turmoil at OpenAI sheds light on the challenges of corporate governance and ethical leadership in rapidly evolving tech sectors. It also raises wider questions:

1. OpenAI's stability: CEO Sam Altman is back after an abrupt firing and re-hiring, but can OpenAI recover from this upheaval and maintain investor and market confidence as a stable and innovative entity?

2. Microsoft's strategic play: Microsoft's quick moves to recruit Altman and to start looking to pull talent out of OpenAI underscore that Microsoft is here for the long game, with OpenAI or without. The turmoil at OpenAI may well cement its influence over the firm.

3. Pace of AI development and governance: One of the rumored reasons for this dismissal was a focus on commercial expansion at the cost of safety implications and ethical considerations. This tension between governance and growth is unlikely to go away.

4. Talent dynamics: The risk of talent migration is a crucial factor. Tech layoffs may still feel recent, but the events of the last few days underline how desperate the tech giants like Microsoft and Salesforce are for top talent.

5. Broader industry impact: This situation could set a precedent in AI development and corporate partnerships, influencing investment strategies and ethical considerations across the tech sector.

The resolution of this situation will not only decide the fate of OpenAI and Microsoft's AI aspirations, but also potentially reshape the contours of the AI industry.

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​With the next Federal Reserve meeting less than two weeks away, all eyes are fixed on economic data and comments from officials as economists seek to glean insights into their next move on interest rates. 

Inflation, as measured by the core personal-consumption expenditure price index – the Fed’s preferred inflation gauge—rose 3.5% in October from a year earlier, representing a slowdown from September’s 3.7% annual gain. 

Additionally, core prices rose 0.2% in October, down from the 0.3% monthly gain in September, while overall consumer prices grew by three percent from a year earlier.  

Economic activity has also decreased in a number of areas. Job and wage growth slowed in October, home sales dropped to a new 20-year low and retail sales at major chains such as Home Depot and Target declined. 

On the flip side, consumers spent $38 billion during the five days between Thanksgiving and this Monday, up 7.8% from the same period last year.

When analysts add this up, they see inflation continuing to ease while remaining well above the Fed’s 2% target. At least for now, the central bank seems likely to leave current interest rates in place while closely watching the activity of U.S. consumers.