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Global Markets React as AI Stocks Experience Significant Decline

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Global Markets React as AI Stocks Experience Significant Decline

Financial markets in both the US and Asia have experienced substantial declines as investors rapidly sell off shares in technology companies, particularly those associated with artificial intelligence (AI). This week has seen notable downturns, marking the largest single-day losses in the markets since 2022.

In New York’s Wednesday trading, the S&P 500 fell by 2.3%, and the tech-heavy Nasdaq experienced a significant drop of 3.6%. The Dow Jones Industrial Average also declined by 1.2%. Major technology firms, including Nvidia, Alphabet, Microsoft, Apple, and Tesla, were among those leading the downturn.

On Thursday, Japan’s Nikkei index mirrored these declines in Asia, falling by 3%. This sell-off comes after a period where technology and AI-related stocks had significantly driven market gains.

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AI chip giant Nvidia saw its shares decrease by 6.8%, contributing to a total loss of about 15% over the past two weeks. Investors are eagerly awaiting Nvidia’s financial results, which are set to be reported at the end of August.

Elon Musk’s electric car company Tesla also faced a steep decline, with shares dropping more than 12% following financial results that did not meet investor expectations. Alphabet, the parent company of Google and YouTube, saw a 5% decrease in its stock price. Although Alphabet’s recent financial results exceeded analyst expectations, the company announced continued high spending for the remainder of 2024, primarily focused on AI development.

In Asia, notable declines were seen among chip makers, including Renesas Electronics and Tokyo Electron in Japan, and South Korea’s SK Hynix. These companies have been heavily invested in AI technology.

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“Investors are now becoming more concerned about all this expenditure with AI without the revenue benefit,” commented Jun Bei Liu, Portfolio Manager at Tribeca Investment Partners.

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Downing Street Indicates UK Would Arrest Netanyahu if He Visits

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Downing Street Indicates UK Would Arrest Netanyahu if He Visits

Israeli Prime Minister Benjamin Netanyahu could face arrest if he enters the United Kingdom, following an international arrest warrant issued by the International Criminal Court (ICC), according to indications from No 10.

A spokesperson for UK Prime Minister Rishi Sunak declined to comment on the specifics of Netanyahu’s case but affirmed that the government is committed to fulfilling its “legal obligations.”

The ICC issued arrest warrants on Thursday for Netanyahu, alongside former Israeli Defense Minister Yoav Gallant, citing alleged war crimes in Gaza. As a signatory to the ICC treaty, the UK is obligated to enforce such warrants.

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Under the International Criminal Court Act 2001, the UK government must transmit ICC arrest requests to a judicial officer, who then determines whether to endorse the warrant for execution within the country.

“The government would fulfil its obligations under the act and its legal obligations under both domestic and international law,” the spokesperson said, emphasizing the UK’s commitment to its treaty obligations.

When asked if Netanyahu would be detained upon arrival in the UK, the spokesperson refrained from commenting on “hypotheticals.” However, the legal framework leaves little room for discretion if a visit occurs, given the binding nature of the treaty.

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Judge Delays Sentencing for Donald Trump for the Third Time

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Judge Delays Sentencing for Donald Trump for the Third Time

A New York judge has delayed the sentencing of President-elect Donald Trump for a third time as legal battles over his conviction remain unresolved. Trump’s attorneys continue to press for his conviction to be dismissed, citing presidential immunity and potential interference with his upcoming duties as president.

Originally scheduled for sentencing on November 26, Trump was convicted in May on 34 felony fraud charges. The Manhattan District Attorney, who led the prosecution, opposes efforts to overturn the conviction but has suggested delaying sentencing until after Trump’s second presidential term.

Justice Juan Merchan, presiding over the case, has paused all proceedings to review legal briefs from both sides. These submissions are due in December, but no new sentencing date has been set.

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With Trump’s inauguration looming on January 20, the court faces increasing pressure to decide whether the conviction will stand or if sentencing will proceed.

Trump’s legal team argues that his conviction undermines the principle of presidential immunity, asserting that legal proceedings during his term would interfere with his ability to govern effectively. Critics, however, have pushed back, asserting that no one, including the president, is above the law.

This legal standoff marks another chapter in the contentious relationship between Trump and the judiciary, as the nation watches closely to see how the case unfolds in the lead-up to his second inauguration.

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ICC Issues Arrest Warrants for Netanyahu, Gallant, and Hamas Commander Over War Crimes

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ICC Issues Arrest Warrants for Netanyahu, Gallant, and Hamas Commander Over War Crimes

The International Criminal Court (ICC) has issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu, former Defense Minister Yoav Gallant, and Hamas military commander Mohammed Deif, accusing them of war crimes and crimes against humanity.

The ICC’s pre-trial chamber stated that there are “reasonable grounds” to believe all three men bear responsibility for atrocities committed during the conflict between Israel and Hamas. These include allegations of murder, persecution, torture, and the use of starvation as a weapon of war.

For Netanyahu and Gallant, the charges stem from Israel’s military response to Hamas’s deadly October 7, 2023, attack, which left 1,200 Israelis dead and 251 abducted to Gaza. Gaza’s Hamas-led health ministry reports over 44,000 deaths during Israel’s subsequent military campaign.

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The ICC accuses Deif, Hamas’s military leader, of orchestrating crimes such as murder, extermination, rape, and hostage-taking during the initial attack. Despite Israel’s claim that Deif was killed in an airstrike in July, the ICC included him in the warrants.

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  • Israel dismissed the ICC’s decision as “antisemitic” and reaffirmed its stance that the court lacks jurisdiction over the matter, as Israel is not a signatory to the ICC.
  • Hamas hailed the warrants for Israeli leaders as a “historic precedent,” while rejecting the charges against its own commander.
  • United States condemned the ICC’s actions, while European Union foreign policy chief Josep Borrell called for respecting and implementing the court’s decisions.

The warrants raise questions about enforcement, as neither Israel nor Hamas recognize the ICC, and compliance depends on the court’s 124 member states. The development marks a pivotal moment in international law’s attempt to address the human toll of the ongoing Israel-Hamas conflict.

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