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SpaceX Rocket Lands on Floating Drone Ship

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Elon Musk

It was a scene straight from a science fiction movie. A white, pencil-shaped rocket angling down through a hazy-blue sky, then gracefully touching down, amid billowing smoke. All on an automated drone-ship in choppy Atlantic seas. In that moment, Elon Musk reached a new milestone in his bid to dominate commercial space and, one day, send humans to Mars.

What a week for Musk. Days after the triumphant unveiling of Tesla’s latest electric car, SpaceX won over the Internet as countless thousands tuned in to watch the Falcon 9 rocket launch and, roughly eight minutes later, its spectacular first-ever landing at sea. At the company’s mission control center in Hawthorne, California, a throng of employees exploded in cheers. President Barack Obama and Apollo astronaut Buzz Aldrin, who walked on the Moon nearly half-a-century ago, were among the first to send shout-outs from around the world.

With his characteristic bravado, Musk soon chimed in: “Tickets to orbital hotels, the moon and Mars will be a lot less than people think,” he wrote on Twitter.

 If that sounds over the top, few could deny the symbolic importance of the moment that heralded a new era of affordable, reusable rockets even as it brought back the enthusiasm and drama of the Moon shots and early space shuttle days from a generation ago.

Brash Upstart

“This is the dramatic visual of the new space age,” said Marco Caceres, senior analyst at consultant Teal Group in Fairfax, Virginia. “NASA has been trying to recreate the excitement of the Apollo era. Elon Musk just did it.”

Long considered a brash upstart nipping at the heels of staid aerospace giants, Space Exploration Technologies Corp. is coming of age 14 years after it was founded by Musk with the lofty– and many have said unrealistic– goal of revolutionizing spacecraft and colonizing Mars. Trips to the Red Planet aside, SpaceX is now within striking distance of becoming dominant in the payload business. It’s planning to fly 18 missions this year, triple the number in 2015.

That’s a highly ambitious goal in an industry known for delays and mishaps. And Friday’s launch– a supply run to the International Space Station — was only the third so far this year. Yet if SpaceX hits its target, it will fling more rockets into space than any of its competitors from the U.S., France, Russia and China and achieve a launch cadence not seen since the end of the Cold War.

Drone Landing

The rocket booster that landed on the drone ship Friday will be brought to port and tested on land; if everything checks out, it could fly again as early as June. By the second half of this year, Musk expects SpaceX to launch–and recover–rockets every two to three weeks.

“We’ll be successful, ironically, when it becomes boring,” said Musk at a news conference with NASA Friday. “When it’s like, ‘Oh yeah, another landing, OK, no news there.”’

That will be a bad day for competitors like Europe’s Arianespace, which flies the Ariane 5, and United Launch Alliance, a joint venture of Boeing Co. and Lockheed Martin Corp. They are scrambling to match SpaceX’s lower costs and fast-paced Silicon Valley vibe. Reusable rockets, once scoffed at by the established players as a pipe-dream, are now on the top of everyone’s agenda.

Launch Costs

The cost of a Falcon 9 launch is $61.2 million, according to the company’s website. Established launch companies won’t be able to match SpaceX’s launch costs for years. The price tag for launching a ULA Atlas V rocket, which is not reusable, was $184 million two years ago. ULA has succeeded in getting that price down so far by a third, but it won’t fall below $100 million until 2019 at the earliest.

The National Aeronautics and Space Administration, which ended its 30-year space shuttle program in 2011, now partners with private industry to fly both cargo and crew. SpaceX’s Dragon capsule, loaded with 7,000 pounds of cargo, supplies and an inflatable extension module, reached the space station orbiting over Algeria on Sunday morning, New York time. Dragon is scheduled to return to Earth and splashdown in the Pacific Ocean May 11.

Government agencies like NASA are just one of three markets for launch providers like SpaceX. Satellite companies depend on rockets to get their communications equipment into orbit. And the $70 billion national defense market, which includes highly sensitive missions for the military, is another. SpaceX has bid on a contract to launch GPS satellites for the U.S. Air Force.

Tight Loop

SpaceX also has an advantage by playing outside the old aerospace procurement system which relies on multiple contractors and subcontractors. Legacy aerospace companies have long supply chains with embedded testing, documentation and procurement procedures that inflate costs. SpaceX builds not only the Falcon 9 rocket but the rocket’s Merlin engines in-house. The tight loop between design, manufacturing, and prototype testing is a Silicon Valley approach, said consulting firm Alix Partners in a recent report.

“The fact that SpaceX makes its engines itself is a really big deal,” said David Wireman, an aerospace analyst with Alix Partners. “The engines are a big chunk of the cost of any rocket. SpaceX has broken the supply chain.”

At industry conferences largely populated by middle-aged men in gray suits, you can spot the SpaceX employees, in part, by the logos on their jackets and by their youthful look. SpaceX has roughly 5,000 employees; their average engineer is 32.

SES of Luxembourg first flew with SpaceX in 2013 and has contracted for another four launches through 2017. Like other satellite customers, SES was drawn to SpaceX’s vision, lower cost and fast-paced culture.

“The fundamental difference that SpaceX has is that they are on a mission, and the mission is to go to Mars,” said Martin Halliwell, SES’s chief technical officer, in an interview. “That is absolutely unique within the industry. It’s a true passion felt by Elon and every single person in the company.”

Bloomberg

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Visa and Mastercard Face Setback as Judge Indicates Likely Rejection of $30 Billion Deal

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mVisa

Visa Inc. and Mastercard Inc. are facing a potential setback as a federal judge in Brooklyn indicated she is likely to reject their $30 billion settlement with retailers.

The deal, aimed at capping credit-card swipe fees, has been a focal point of contention between the card giants and merchants for years.

Judge Margo Brodie of the U.S. District Court for the Eastern District of New York expressed skepticism about the settlement during a hearing on Thursday.

According to court records, Judge Brodie suggested she might not approve the agreement, stating she would issue a written decision in the coming days.

Retailers have long campaigned to reduce their share of the costs associated with accepting card payments, known as interchange fees.

These fees, which are partially passed on to banks that issue the cards, including major institutions like JPMorgan Chase & Co. and Citigroup Inc., have been a burden for many merchants.

Announced in March and pending court approval, the settlement was designed to allow merchants to charge consumers extra for transactions involving Visa or Mastercard credit cards.

The agreement also aimed to introduce pricing tactics to steer consumers towards lower-cost cards.

“The court’s comments strongly suggest that she won’t accept the settlement,” noted Justin Teresi, an analyst with Bloomberg Intelligence. “While Judge Brodie doesn’t seem convinced that larger retailers should be allowed to opt out from the settlement, provisions like changes to digital wallet acceptance rules and some state bans on surcharges likely present real adequacy issues.”

Both Visa and Mastercard expressed disappointment over the developments. A Mastercard representative stated, “We believe the settlement presented a fair resolution of this long-standing dispute, most notably by giving business owners more flexibility in how they manage their card acceptance activities. We will pursue our options to ensure a proper resolution of this matter.”

Visa’s spokesperson echoed this sentiment, emphasizing that “continued engagement between industry and the merchants is the best way forward.”

Swipe fees have become a substantial financial issue for retailers, totaling more than $160 billion last year, according to the Merchants Payments Coalition. Reactions to the settlement were mixed when it was announced, with some retail coalitions pledging a thorough review and others quickly opposing it.

The Retail Industry Leaders Association, representing large merchants such as Target Corp. and Home Depot Inc., described the settlement as a “mere drop in the bucket” and urged careful review to assess if it adequately addresses the harm inflicted on retailers.

Doug Kantor, general counsel for the National Association of Convenience Stores, praised the judge’s remarks, stating, “We’re gratified to see that the court recognized how bad this settlement was.”

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Norwegian Watchdog Slams Meta for Cumbersome Opt-Out Process in AI Training Plans

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Meta Platforms Inc., the parent company of Facebook and Instagram, is facing a new legal challenge in Norway over its plans to utilize user images and posts to train artificial intelligence (AI) models.

The Norwegian Consumer Council has lodged a complaint, criticizing Meta’s cumbersome and deceptive opt-out process, which it argues breaches stringent EU data protection regulations.

The Council’s statement on Thursday highlighted that Meta’s method for allowing users to opt out of data collection for AI training is overly complicated and intentionally confusing.

“The process to opt-out breaches strict EU data protection rules and has been made deliberately cumbersome by using deceptive design patterns and vague wording,” the Council said.

This isn’t Meta’s first run-in with European regulators regarding data privacy. The tech giant has previously faced multiple complaints for allegedly failing to obtain proper consent from users before collecting their data to target advertisements.

Also, the European Union’s top court has warned Meta about safeguarding public information on users’ sexual orientation from being used for personalized advertising.

“We are urging the Data Protection Authority to assess the legality of Meta’s practices and to ensure that the company is operating in compliance with the law,” stated Inger Lise Blyverket, head of the Norwegian Consumer Council.

The complaint was prepared by the European Center for Digital Rights and will be submitted to the Norwegian Data Protection Authority, as well as other European data protection authorities.

Due to Meta’s EU base in Dublin, the Irish Data Protection Commission will serve as the lead authority in this matter.

The outcome of this complaint could have significant implications for how Meta, and other tech companies, handle user data within the EU.

Meta’s use of user data for training AI has raised significant privacy concerns. Critics argue that without clear and straightforward consent mechanisms, users are often unaware of how their data is being used.

This latest complaint underscores the ongoing tension between big tech companies and European regulators striving to enforce robust privacy standards.

The Norwegian Consumer Council’s action reflects a growing impatience with tech giants’ data practices, emphasizing the need for transparency and user control.

As AI technologies continue to advance, ensuring ethical and lawful data usage remains a critical challenge for both companies and regulators.

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Ethio Telecom Sale to Foreign Bidders Halted; Local Investors to Get Priority

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telecommunication-tower

Ethiopia has decided to halt the sale of its state-owned telecommunications operator, Ethio Telecom, to foreign investors.

Instead, the government will prioritize domestic retail investors before listing the company on the nation’s upcoming securities exchange.

Originally, the Ethiopian government planned to sell 45% of Ethio Telecom to foreign investors. This approach was abandoned in November after Orange SA, a major contender, withdrew from the bidding process.

Emirates Telecommunications Group Co. was also rumored to have considered a bid but did not proceed.

“There were bidders, but each one of them has left the process at one point,” said Abdurehman Eid, CEO of Ethiopian Investment Holdings, which is overseeing the sale along with the finance ministry. “At the end, we felt it’s probably better to halt the process.”

Eid explained that foreign interest did not meet Ethiopia’s expectations. “The priority now is to expedite the sale of 10% to retail investors, who are showing a huge appetite,” he noted during an interview at a sovereign wealth fund conference in Mauritius.

The focus on foreign investors will resume after Ethio Telecom is listed on the Ethiopian Securities Exchange (ESX), set to commence operations in October.

Ethio Telecom, the largest telecommunications operator in Africa’s second most-populous country, had a monopoly for decades. By January, the company boasted 74.6 million subscribers and recorded a profit of 11 billion birr ($191.6 million) for the first half of the fiscal year.

The shift in strategy underscores Ethiopia’s intention to leverage domestic investment capacity. The decision to prioritize local investors aligns with broader economic goals, aiming to stimulate local participation in major economic sectors.

This move is part of a larger plan to list five other state-owned companies on the ESX. According to Eid, proceeds from these divestitures will be utilized to reduce public debt.

Over the years, enterprises controlled by the government have accumulated substantial debt, leading to financial struggles.

The Liability Asset Management Corp., established three years ago, currently manages close to 780 billion birr in debt.

By redirecting the sale of Ethio Telecom shares to local investors, Ethiopia is fostering a more inclusive investment environment and setting a precedent for future listings.

The new strategy is expected to enhance domestic capital markets and provide more opportunities for Ethiopian citizens to invest in the country’s economic future.

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