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30th January 2025
 
THE HOT STORY
DeepSeek success sparks global AI selloff
Technology stocks faced a global sell-off on Monday, in response to investor concerns about the threat posed by Chinese artificial intelligence (AI) app DeepSeek. The low-cost AI model has surpassed ChatGPT to become the top-rated free application on Apple's App Store in the US, UK, and China since its launch in January. The app, powered by the open-source DeepSeek-V3 model, uses less data and operates at a fraction of the cost of existing services. This led the tech-heavy Nasdaq to fall 3.1% on Monday. AI leader Nvidia saw its shares tumble just under 17%, marking a record one-day loss in market capitalization for a Wall Street stock, according to LSEG data. Chipmaker Broadcom Inc finished down 17.4%, followed by ChatGPT backer Microsoft, which fell 2.1%. Fiona Cincotta, senior market analyst at City Index, commented: "If you suddenly get this low-cost AI model, then that's going to raise concerns over the profits of rivals, particularly given the amount that they've already invested in more expensive AI infrastructure." Experts also said the success of DeepSeek is also likely to concern venture capital firms that invested heavily in foundational model companies. In a separate development, DeepSeek has announced it will temporarily limit registrations because of "large-scale malicious attacks" on its software.
DIVERSITY, EQUITY & INCLUSION
Diversity initiatives losing ground
Recent trends indicate a significant rollback of diversity, equity, and inclusion (DEI) initiatives among major US corporations, even before President Donald Trump's campaign to dismantle these programmes. Companies like Meta, Walmart, and Target have curtailed their DEI efforts, raising concerns about a return to inequity. Data shows that while women held 39% of managerial roles in 2024, the representation of Hispanic and Black women in mid-level positions remains alarmingly low, averaging around 5%. The shift in corporate attitudes towards DEI is evident, with research from McKinsey showing that only 78% of North American companies prioritising gender diversity, down from 88% in 2017. "Companies are saying diversity is no longer a top priority," said Alexis Krivkovich, a senior partner at McKinsey. "It's the first time we've seen a material step back, and that really concerns me."
HEALTH & WELLBEING
Employee happiness is the key to competitive edge
Lord Mark Price, founder of employee experience platform WorkL and author of Happy Economics, discusses in The Australian the importance of employee happiness in order to drive commercial success within organisations. He points to the latest report from his company finding that workplace happiness is essential for economic success and productivity. Lord Price adds that companies that prioritise employee wellbeing and engagement not only see a stronger bottom line but also build a workforce which is more motivated, loyal, and better equipped to face challenges.
REMOTE & HYBRID WORKING
Veeva's 'work-from-anywhere' philosophy pays off
Cloud-based software company Veeva emerged as the top remote work employer in 2024, according to a FlexJobs report, offering the highest volume of work-from-anywhere job postings. The company’s opportunities, which span roles like business consultants and data analysts, boast salaries ranging from $55,000 to $300,000 annually. Although headquartered near San Francisco with 28 global offices, Veeva emphasises flexibility while investing in office spaces as hubs for collaboration, culture, and idea-sharing. For employees working in-office at least three days a week, dedicated workspaces are provided. This hybrid approach, according to the company, enhances social bonds and fosters innovation. The strategy has paid off, attracting top talent in a labour market craving remote opportunities. Vivian Welsh, chief people officer, comments: “We definitely sense a lot of appreciation from our workers, and we realise that [our policy] is not very common. We have employees that have been here more than 10 years, and they still greatly appreciate the ability to have that choice.”
ECONOMY
Asia-Pacific is set for a US$5.8tn intergenerational wealth transfer
The Asia-Pacific region is poised for a significant intergenerational wealth transfer, estimated at US$5.8tn by 2030, according to the 2024 HSBC Global Entrepreneurial Wealth Report. However, 66% of Hong Kong respondents are said to lack a wealth transfer plan, with 64% yet to establish a succession plan for their businesses. Christina Tung, head of trust and fiduciary services at HSBC, highlights the urgency of the situation, observing: “There is an urgency for these families to plan for the transfer systematically and structurally.” HSBC says it aims to support families in navigating complex wealth management needs, leveraging its extensive network and expertise to ensure smooth transitions across generations. The report underscores the growing demand for professional succession planning, as over 70% of Hong Kong entrepreneurs say they wish to preserve their wealth but remain underprepared.
WORKFORCE
Singapore's Platform Workers Bill looks to transform the gig economy
Earlier this month, Singapore’s Platform Workers Bill came into force, marking a milestone in the evolution of labour protections for gig workers. The bill addresses long-standing issues related to financial security, workplace protection, and fair treatment while maintaining the flexibility that defines the gig economy. Among the key provisions of the bill are: mandatory CPF contributions; workplace injury compensation; representation and bargaining rights and anti-discrimination measures.
Australian travellers braced for disruption
Australian travellers have been warned they might face disruption at airports after more than 1,000 workers walked off the job as part of a push for better working conditions. Hundreds of ground workers from dnata walked off the job on Friday after nearly a year of bargaining with the major airline for better pay and conditions. Transport Workers’ Union (TWU) national secretary Michael Kaine said workers were struggling with poor rostering and low guaranteed hours, and while disruptions were “regrettable”, there needed to be “better terms and conditions to maintain and attract workers”.
REMUNERATION
Samsung workers demand better pay
After a month-long strike last year, Samsung employees are set to engage in discussions with management regarding wage revisions and improved working conditions. The Tamil Nadu labour department has officially recognised the Chennai plant's trade union, Samsung India Thozhilalar Sangam, following a directive from the Madras High Court. The union, comprising around 1,400 members, aims for a wage increase to Rs 36,000 over three years. Tripartite talks are scheduled for January 30, involving union representatives, company officials, and labour department members.
RISK
Xinjiang defies US sanctions
Legislators from the Xinjiang Uygur autonomous region have expressed a strong commitment to support enterprises affected by US sanctions, which they claim are based on unfounded accusations of "forced labour." Zumret Obul, director of the standing committee of the regional people's congress, stated: "The resolution has been widely recognised, as it has helped to protect the legitimate rights of the enterprises." The region's legislature has passed a resolution to counter these sanctions, urging Government support for sanctioned businesses and providing legal aid to protect their rights. The Xinjiang Government reported that over 100 local enterprises have been disrupted by sanctions, leading to significant layoffs. Local leaders, including Aliyar Anwar, emphasised the importance of expanding legal means to combat these external pressures, reflecting the will of the people and legislators in Xinjiang.
INTERNATIONAL
Goldman Sachs CEO advocates trade balance
David Solomon, chief executive of Goldman Sachs, has highlighted the necessity for improved relations between the US and China during a CNBC interview at the World Economic Forum in Davos. Solomon believes that rebalancing trade agreements could benefit US growth if approached correctly. Additionally, he anticipates a significant rise in deal activity by 2025, suggesting that equities dealmaking may exceed the 10-year averages this year. Goldman Sachs has a longstanding presence in China, having received approval to fully control its mainland securities business in 2021.
OTHER
Fancy dress mishap leads to confusion on cruise
P&O Cruises Australia has confirmed that pointed white hoods worn by cruise ship staff at a Christmas costume party were “upside-down snow cones” not supposed to represent the Ku Klux Klan. Passengers on board P&O's Pacific Explorer were left aghast after staff, believed to be housekeeping, appeared dressed in all-white boiler suits and pointed white masks. In a statement, P&O Cruises Australia said: “We regret if a recent incident on a Pacific Explorer cruise offended any guests. Several crew members dressed up as snow cones for a Christmas family event, not understanding how their costumes could be misconstrued. They were only in public view for a short time before management acted quickly and had them remove the costumes."
 


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