Putin faces a tough 2023 for Russian oil as the West’s ban and price cap take hold. These 3 experts assess whether the measures will work — and what it means for crude prices.

Business Insider 

EU sanctions on Russian oil products are set to take effect on February 5.

Oil markets may face headwinds in 2023 as fresh Western sanctions and a price cap on Russian oil come into effect. 
Analysts expect a slump in Russian crude output to squeeze global supplies, putting upward pressure on oil prices.
Demand from China is expected to pick up as zero-COVID restrictions ease, adding to the tightness in energy markets. 

Brace for a drop in Russian oil output and a spike in global crude prices next year as fresh Western sanctions against Moscow take hold and with China’s energy demand set to rebound, three industry analysts told Insider. 

The next round of European Union sanctions on Russian oil products are due to take effect on February 5. It comes in response to the country’s invasion of Ukraine, and will affect refined petroleum products such as diesel.

It follows an EU embargo on seaborne imports of Russian crude effective December 5 and a G7 move to cap the country’s oil at $60 a barrel. Both measures aim to blunt Moscow’s export revenue while still keeping Russian crude flowing through global markets to prevent a supply shock.

According to analysts, the next round of sanctions — combined with a rebound in Chinese demand as zero-Covid restrictions ease — will likely squeeze oil markets and push prices higher. 

Russian crude output could fall by 1 million barrels a day

“We expect the European ban on seaborne Russian crude and refined products (to come into force on February 5) to result in a drop of Russian production of at least 1 million barrels per day in 2023, with Russia having difficulties in finding alternative markets,” said Giovanni Staunovo, a commodity analyst at UBS Global Wealth Management.

Indeed, Russia has threatened it would slash production by up to 700,000 barrels a day in retaliation to the G7 price cap, suggesting another potential hit to the country’s oil output. 

The nation has been rerouting increasing volumes of its oil to India and China amid rising political tensions with Europe, one of its biggest markets, due to the war in Ukraine. In the week leading up to December 9, Moscow sent 89% of its crude, amounting to about 3 million barrels a day, to Asia.

But shipments to Asia are now proving more difficult as European sanctions make it tougher for traders to find enough insured vessels to transport Russian crude.

According to Rystad Energy, however, the risk of a sharp decline in Russian crude production was more acute in mid-2022, when global supplies were tighter.

“As long as US shale performs and delivers growth, we see the market moving towards a more normal equilibrium,” Louise Dickson, a senior analyst at Rystad Energy told Insider.

Crude prices could climb past $100 a barrel 

With global supplies expected to get squeezed, crude prices will likely soar past $100 a barrel next year, according to Saxo Bank’s Ole Hansen and UBS Global Wealth’s Staunovo. 

“The embargo on seaborne crude from now and fuel products from February will likely have a price-supportive impact on markets,” said Hansen, head of commodity strategy at Saxo. The supply disruptions should add to the “expected tightness when demand picks up in China following the current virus surge,” he added.

Those risks raise the likelihood of oil prices topping $100 a barrel, according to Hansen.

“Following a soft first quarter, I see the price of Brent returning to a $90-100 dollar range. What happens later will depend on the strength of an incoming economic slowdown,” he added. UBS’s Staunovo echoed his view. 

Oil prices have trended upward since mid-December after months of declines as supply comes under pressure following EU sanctions on seaborne Russian crude and threats by Moscow that it will slash production in retaliation to the G7-imposed price cap. 

Brent crude, the international benchmark, has risen by more than 10% from this year’s lows reached earlier in December, standing at around $83 a barrel at last check on Friday.

“The real test will come on 5 February with the implementation of a products ban,” Rystad’s Dickson said. “A loss of Russian refined products in Europe will pull extra on US products at a time when refinery dynamics are still quite tight, as evidenced by last summer’s gasoline price surge in the US and diesel crunch in Europe,” she added.

Read the original article on Business Insider

Read More 

A senior executive assistant at Uber and self-described introvert shares the LinkedIn strategy that launched her career in Big Tech

Business Insider 

Katie Thomas reached out to 30 to 40 executive assistants on LinkedIn to get advice on working in tech.

Katie Thomas is a senior executive assistant at Uber and a former assistant to Postmates’ CFO.
She worked her way up in tech by networking and posting frequently on LinkedIn.
She says coming prepared with smart questions and research on an executive is key for interviews.

Katie Thomas has been a senior executive business partner at Uber since March 2021, after the ride-hailing giant acquired her previous employer, Postmates, for $2.65 billion. Before that, she was the executive assistant to Postmates’ chief financial officer.

A self-described introvert who seeks out careers with “mission-driven companies,” Thomas worked her way into Big Tech after starting as a receptionist for a private-equity firm. She told Jessica Vann, the CEO of Maven Recruiting Group, on a recent episode of the podcast “Reach” that “taking a shot” with a good first impression — whether in real life or online — early in her career opened a lot of doors.

Her first piece of advice to anyone starting out is to be active on LinkedIn and connect with people whose career paths mirror your goals. Here’s how — and her tips for interviewing for a role at a big tech company.

Be honest, and be yourself

A few months after beginning her role at Postmates in April 2020, Thomas posted on LinkedIn about her “unusual journey” starting a job entirely remotely, expressing gratitude for “the chance to expand my horizons and challenge myself.” The post received more than 3,000 likes and 100 comments.

“That was an inspiring moment,” Thomas said on the podcast. Since then, she added, she’s grown her profile to more than 2,200 followers by “recognizing my value and the accomplishments I have made.”

For anyone trying to be more active on the platform, she warned against copying how others engage. “Be as authentic as possible in the things that you like and the things that you comment on, the people you connect with,” she said.

Send your message far and wide

Thomas’ position with Postmates was also her first time assisting anyone in the C-suite. So, eager to find a mentor who could guide her through this new challenge, Thomas messaged about 30 to 40 executive assistants who supported CFOs in the tech industry.

She said she told them it was her first time working in tech and for a C-suite and asked for any tips and tricks. She added that while she got only a few responses, “those few people that I was able to connect with, I still connect with to this day.”

These contacts, she said, remained some of her “biggest cheerleaders” as she transitioned to new roles in the industry.

Be bold in a way that works for you

Thomas said she often finds networking and work events draining, so it was crucial to find “that right method or tool that works for you.”

Once, when covering for someone on leave, Thomas had to reschedule an executive’s meeting with Salesforce. Thomas Googled the executive assistant at Salesforce and saw that she had an impressive background.

“She was where I wanted to be five or 10 years from now,” Thomas said. Getting a “good vibe” from email exchanges, Thomas said, she asked if the other executive assistant wanted to get a coffee or a drink.

“The worst they can say is no,” Thomas said.

Thomas said that they went for a drink a few weeks later and that the executive assistant “really helped me think through what my next steps would be.”

Thomas credited this experience with pushing her to be bolder when it came to LinkedIn and other networking opportunities.

Come prepared with talking points

Thomas said positivity is her superpower in interviewing for roles in tech. “People understand who I am right off the bat, and that sometimes that might not work for everyone,” she said. But by being authentic, Thomas added, she can “weed out” people she might not enjoy working for.

Asking smart questions is crucial, too. “It’s easy to be asked questions the whole time and not come prepared with ones of your own,” Thomas said. Some of her favorite to ask are “How much time do you spend with your direct reports?” “What are your priorities in your business as well as your personal life?” and “Are there are other executive assistants I may be working with?”

If the answer to the last question is yes, Thomas said, she’ll ask herself: “Are they also excited about their growth? Are they willing to help and help me understand what’s going on?”

She added that executive assistants should be prepared with “points of why you want to work there and what’s important to you and the things that are exciting to you about what that company is doing.”

She said that in her experience, interviewers want to hear about an interviewee’s ideas and goals — what they’re working toward, and whether they’re going to partner with the executive and match them in terms of hard work and care. “I always make sure that I am researching what they’re doing and the things I want to help with,” Thomas said.

Thomas said that finding the right executive to “grow with me” has been another key to her success. That means supporting someone who understands her goals — one of which, she said, is “working with other kind people.”

Read the original article on Business Insider

Read More 

Here are the four big election storylines for 2023

Politics, Policy, Political News Top Stories 

Washington is ready to zoom ahead to the 2024 elections, with a presidential election and control of Congress up for grabs.

But there are matters to settle in 2023 first.

The off-year cycle will feature several major election storylines worth keeping a close eye on.

That includes several big elections — three gubernatorial contests and major American cities electing their mayors — along with the fight around the congressional maps used for 2024 playing out in courts across the country in the upcoming year.

Here are the four big election storylines to follow in 2023:

Kentucky’s wild governor’s race, and two other chief executive contests

The Kentucky gubernatorial contest has already gotten off to a chaotic start, with a slew of prominent Republicans in the state lining up to challenge Democratic Gov. Andy Beshear, who is seeking a second term.

The crowded Republican field already includes state Attorney General Daniel Cameron — long rumored to be a successor-in-waiting to Senate Minority Leader Mitch McConnell — and Kelly Craft, who was then-President Donald Trump’s second and final permanent ambassador to the United Nations. Other notable candidates include state Auditor Mike Harmon and Agricultural Commissioner Ryan Quarles. There are persistent rumblings that former Gov. Matt Bevin might get into the race and even rumors that former pizza magnate “Papa John” Schnatter himself could launch a bid.

Trump has already made an early endorsement in the race, backing Cameron in June.

The GOP senses a real pickup opportunity. Beshear only narrowly defeated Bevin in 2019, and Republicans have been champing at the bit for the opportunity to challenge him since. But Democrats will rally to his defense, with new Democratic Governors Association Chair Phil Murphy saying in an interview with POLITICO late last year that defending Beshear would be “priority number one.”

Two other states will be holding gubernatorial elections this year as well. In Louisiana, Democratic Gov. John Bel Edwards is term-limited in the otherwise red-leaning seat. Only one notable candidate — Republican state Attorney General Jeff Landry — has declared their candidacy thus far.

But that is expected to change in 2023. Sen. John Kennedy (R-La.), among others, has expressed interest in running.

And in Mississippi, GOP Gov. Tate Reeves is expected to seek another term, although at least some other Republicans in the state have been kicking the tires on runs of their own.

All three states will also be holding down-ballot statewide contests as well.

The redistricting battles continue

After a much-delayed redistricting process, states scrambled to lock in their congressional maps ahead of the 2022 election. But those maps are anything but set-in-stone for 2024.

The Supreme Court is poised to issue opinions on a pair of cases about redistricting by the end of June that could dramatically change the landscape. The first, Merrill v. Milligan, concerns Alabama’s map, where challengers sought to have it tossed by alleging it weakened the power of Black voters in the state.

The court — although seemingly chilly to the state’s argument that a key civil rights law needs to be read in a “race neutral” manner — seems likely to rewrite the test used to determine if a minority group’s voting power is being “diluted.” That will likely result in less voting power for minority groups in Congress. Outside of Alabama, ongoing cases in states like Georgia and Louisiana likely hinge on the court’s decision.

The second major Supreme Court case, Moore v. Harper, originated in North Carolina. There, the state Supreme Court tossed out the map drawn by Republicans as an illegal partisan gerrymander, with a court-drawn map eventually being used in 2022. Republican legislators sought to have the nation’s highest court negate the state court’s map, advancing a once-fringe legal theory called the “independent state legislature” doctrine that argues that state courts have little to no role in checking state legislatures’ power to set the rules around federal elections.

The Supreme Court seems unlikely to adopt the most muscular version of the theory. But depending on where the justices land, it could reopen the redistricting process both in the Tarheel State and elsewhere where state courts waded into the mapmaking process.

The 2022 elections in a handful of states will also likely have an impact on congressional lines in 2023. Republican-aligned justices won a majority on the North Carolina state Supreme Court — making the court much more likely in the future to back the party’s legislatively drawn lines. And in Ohio, a Republican justice who had repeatedly ruled that the lines there were illegal partisan gerrymanders favoring her party retired and was replaced, also giving GOP mapmakers there more of a free hand in those fights that are expected to continue this year.

A big 2023 election that could have ramifications over future redistricting fights is a Wisconsin state Supreme Court contest in early April. That court currently has a narrow 4-3 conservative majority, with Justice Patience Roggensack’s seat up next year after she opted to not seek another term. She is part of the court’s conservative majority, so a win by a liberal-leaning jurist would flip the balance of the court in a state where Democrats have challenged maps as illegal gerrymanders in the past.

But there is significant uncertainty around the race. Two liberal judges — Dane County Circuit Court Judge Everett Mitchell and Milwaukee County Circuit Court Judge Janet Claire Protasiewicz — are running alongside two conservative judges, Waukesha County Circuit Court Judge Jennifer Dorow and former state Supreme Court Justice Daniel Kelly. All four are competing in a primary (the office is technically nonpartisan) in February, with the top two advancing to the general election.

Pennsylvania will also host a state Supreme Court election in November to fill the seat of the late state Chief Justice Max Baer, a Democrat who died in September.

Temperature check in Virginia

A handful of states will also hold state legislative races in 2023, with the contests in Virginia as the likely headliners in November.

Both chambers are up in the commonwealth, which will be the only state that has a split Legislature in 2023. Republicans narrowly control the state House, while Democrats have a slim majority in the state Senate. Democrats took control of both chambers during the 2019 elections, only for Republicans — on the coattails of now-Gov. Glenn Youngkin’s win — to flip back the state House in 2021.

The 2023 election should serve as a temperature check heading into 2024. It will also be the first election held under new maplines in the state, after a chaotic redistricting process led to the state House races in 2021 being held under last decade’s lines. (The state Senate was not up in 2021.)

A preview of the battle for control of the chambers will come in January, where there is a special election to fill Republican Jen Kiggans’ state Senate seat. She vacated it to join the House after defeating Democratic Rep. Elaine Luria in November, and both parties are competing in the Virginia Beach-area district. President Joe Biden carried the district in 2020, according to data compiled by CNalysis, but Youngkin won the area in 2021. Republican Kevin Adams will face off against Democrat Aaron Rouse on Jan. 10, and the contest will be held under last decade’s lines.

Louisiana, Mississippi and New Jersey will also hold legislative elections next year, but partisan control of the state House is unlikely to flip.

Big city scrambles

Five of the nation’s 10 largest cities — Chicago, Houston, Philadelphia, San Antonio and Dallas — are holding mayoral elections this year, according to Ballotpedia, setting up battles over local control that will affect millions of Americans.

Chicago’s mayoral election is already incredibly contentious. Democratic Mayor Lori Lightfoot is facing eight rivals in her bid for a second term. The election is on Feb. 28, but if no candidate receives a majority of the vote — which is likely, given the field — the top two advance to a runoff in early April.

The polling that has been publicly released, although sparse, has shown Democratic Rep. Jesus “Chuy” Garcia with an edge, with Lightfoot and a few other candidates close behind. Crime will likely play an outsize role in debates, and progressive politics and the power of Black and Latino voters in the majority-minority city will come into play, too.

Four years ago, Lightfoot campaigned as a progressive reformer. But in office, she has drawn criticism for opposing an ultimately successful push to elect the city’s school board and her handling of homelessness and crime — which has seeped into the same white enclaves that helped elect her four years ago.

Supporters credit Lightfoot with guiding the city through the pandemic, championing legislation in the city that led to a higher minimum wage, creating the city’s first elected civilian police oversight group and working to pay down the city’s pension debt. And though crime persists, there are declines in some areas, including the homicide rate.

In Philadelphia, 10 Democrats have already jumped into the 2023 election to succeed incumbent Mayor Jim Kenney, who is term-limited. The race will test how residents in Pennsylvania’s biggest city want to handle the homicide rate: More police? More progressive policies? Somewhere in the middle?

With several prominent women in the running, including three former city councilmembers and the city’s former controller, the contest could also give the city its first female mayor. Former City Councilwoman Helen Gym, a progressive who advocated for taking down a statue of the late Mayor Frank Rizzo, is widely viewed as the early frontrunner. The partisan primaries are in mid-May, with the eventual Democratic nominee the heavy favorite in November.

The Texas cities are a grab bag. In Houston, Mayor Sylvester Turner is term-limited and a crowded field has already started to form to succeed him. Both Dallas Mayor Eric Johnson and San Antonio Mayor Ron Nirenberg plan on running for another term.

All told, Democrats are expected to continue their dominance of the nation’s largest cities. All five cities have an incumbent Democratic mayor, with the exception of Nirenberg, who is an independent but generally considered progressive.

Holly Otterbein and Shia Kapos contributed to this report.

​ Read More 

[Entertainment] Jeremy Renner: Avengers star ‘critical but stable’ in hospital after snow plough accident

BBC News world 

Image source, Getty Images

Marvel actor Jeremy Renner is in a critical but stable condition in hospital after an accident occurred while he was ploughing snow.

A spokesperson for the star told Deadline the 51-year-old was airlifted to hospital on Sunday after the incident at his home near Reno, Nevada.

They added that Renner was “receiving excellent care” following the “weather-related accident”.

Dozens of people have been killed across the US amid blizzard conditions.

The winter storm also caused power cuts and forced the cancellation of thousands of flights.

Local public information officer Kristin Vietti told The Hollywood Reporter that Renner was taken to a local hospital and that he was the only one involved in the accident.

Image source, Getty Images

Image caption,

Hailee Steinfeld stars opposite Renner in Hawkeye

The major accident investigation team at the Washoe County Sheriff’s Office is looking into the circumstances of the incident, she added.

The office said in a statement given to the Reuters news agency that it “responded to a traumatic injury in the area of Mt. Rose Highway in Reno, Nevada on Sunday morning at 09:00”.

Renner is probably best known for playing Hawkeye in the Marvel Cinematic Universe.

He has also starred in films such as The Hurt Locker – for which he received a best actor Oscar nomination – American Hustle and Mission Impossible – Ghost Protocol.

Renner was also nominated for a best supporting actor Oscar for his role in The Town.

He is currently starring in Paramount+ series The Mayor Of Kingstown and recently saw his fictional own-branded hot sauce make a cameo appearance in Glass Onion: A Knives Out Mystery.

 

Read More 

Kevin McCarthy's problem: historically unpopular with a historically small majority



CNN
 — 

House Republican leader Kevin McCarthy is hoping all’s well that ends well when it comes to becoming speaker of the chamber. The current minority leader and former majority leader may have thought he’d have the speakership locked up by now, but, ahead of the new Congress that begins on Tuesday, he doesn’t.

McCarthy’s problems in securing the top spot in the House are more easily understood when you realize the hand he’s been dealt. He has a historically small majority for a potential first-time speaker, and McCarthy, himself, is historically unpopular compared with other House members who have tried to become speaker.

McCarthy’s Republican Party secured only 222 seats in the 2022 midterms, leaving him little room for error to get to 218 votes – the number needed to achieve the speakership assuming all members vote. McCarthy can only afford to lose the support of four Republicans, and the list of GOP lawmakers who’ve said they will vote against him is longer than that.

No potential first-time House speaker has had such a small majority since Democrat John Nance Garner in 1931. The only first-time speaker in recent times who comes close to McCarthy’s current situation is former Illinois Rep. Dennis Hastert, whose Republican Party entered 1999 with 223 seats. Hastert had the advantage of being a compromise choice after Newt Gingrich stepped down after the 1998 midterms and his would-be successor Bob Livingston resigned following revelations of an extramarital affair.

Indeed, all other potential first-time House speakers in the last 90 years had at least 230 seats in their majority. Speakers whose party held fewer seats than that all had the power of incumbency (i.e., having been elected to the position at least once before).

Remember that McCarthy has been close to the speakership before. He was next in line to become speaker when Republican John Boehner resigned in 2015. But the California Republican couldn’t get his caucus to rally around him enough to win a majority of House votes, and Paul Ryan went on to become speaker instead.

McCarthy had a lot more votes to work with back then – 245 GOP-held seats, more than any potential first-time speaker in the past 30 years. If he couldn’t get the 218 votes then under much more favorable circumstances, one might wonder how he can get to 218 now?

Polling provides somewhat of an answer to this question and helps explain why McCarthy has been facing an uphill battle in the first place.

A CNN/SSRS poll last month found that his net favorable (i.e. favorable minus unfavorable) rating was +30 points among Republicans. That’s certainly not bad. (Senate GOP leader Mitch McConnell has notoriously low ratings among Republicans.) But a net favorability rating of +30 points isn’t really good either.

Another way to frame it: McCarthy is liked by Republicans, but far from beloved. There’s no groundswell of support from the grassroots demanding he become speaker.

McCarthy has the second-lowest net favorability rating among his own party members of all first-time potential speakers in the last 28 years. Only Gingrich’s +24 points in late 1994 was lower. Others such as Boehner (in late 2010) and Nancy Pelosi (in late 2006) had net favorability ratings above +50 points among the party faithful.

The good news for McCarthy is that he’s much better liked now than he was in late 2015 when his net favorability among Republicans was just +2 points. Back then, Republicans had a much more politically attractive choice in Ryan.

The former vice presidential nominee had a net favorability rating of +48 points among Republicans.

The biggest problem Republican foes of McCarthy have right now is that there’s no Ryan. There isn’t a well-known and well-liked Republican waiting in the wings if McCarthy fails. It’s difficult to beat something with nothing.

Under such a circumstance, it’s not difficult to imagine another scenario playing out: McCarthy becoming speaker with less than 218 votes. He needs a majority of those House members who cast votes on the speakership. If enough members stay home or vote present, the threshold for a majority can drop.

Although no first-time speaker has gotten the job with less than 218 votes in at least 110 years, it’s happened a number of times for recent sitting speakers. Last Congress, Pelosi was reelected speaker with 216 votes. It was the same for Boehner in 2015. In fact, it appears that five speakers have been elected with less than 218 votes in the last century.

A number of Republicans may come to realize that while they can’t vote for McCarthy, there does not appear to be a viable Republican alternative to him becoming speaker at this time. They, therefore, may simply not vote “yes” or “no” on McCarthy at all. This would allow him to slip by assuming he still gets more votes for speaker than the new House Democratic leader Hakeem Jeffries.

Either way, all of this GOP angst is a pretty decent consolation prize for Democrats after losing the House majority. If nothing else, they’re watching a Republican Party that can’t seem to get its act together after a historically bad midterm for an opposition party.

And if McCarthy does become speaker, his net favorability rating of -19 points among all adults would by far be the worst for any first-time House speaker in the last 30 years. He’s far more unpopular than either Gingrich (-9 points) or Pelosi (+18 points) were among all Americans when they were first elected speaker. Both of them later became political targets for the minority party to exploit.

source

Four dead and several injured after two helicopters collide on Australia's Gold Coast



CNN
 — 

A midair collision between two helicopters in Australia has left four people dead and three others in critical condition, authorities said Monday.

The collision happened around 2 p.m. local time near the popular tourist strip of Main Beach on the Gold Coast, south of Brisbane.

“Those two aircraft, when collided, have crash landed on the sand bank just out from Sea World Resort,” Queensland Police Inspector Gary Worrell, a regional duty officer for the southeastern region, told reporters.

He added it had been difficult for emergency services to access the sand bank, located not far from the coast.

Thirteen people were on the two helicopters, according to Jayney Shearman, from the Queensland Ambulance Service (QAS). Of those, four people died, three suffered serious injuries and six had minor injuries, including cuts from shattered glass.

An aerial view of the site where two helicopters collided midair in the Gold Coast on January 2.

All the injured had been taken to hospital, she said.

Photos from the site show debris lying on a strip of sand, with personnel gathered on land and numerous vessels in the surrounding waters.

Worrell said that though it’s too early to determine the exact cause of the accident, initial inquiries suggests one helicopter had been taking off and the other landing when they collided.

One helicopter “has its windscreen removed, and it’s landed safely on the island. The other (helicopter) has crashed, and it was upside down,” he said.

He added that after the crash, nearby police and members of the public rushed to the site, trying to remove and perform first aid on those inside the helicopter.

Debris of a helicopter that crashed near the Main Beach in Gold Coast, Australia, on January 2.

Angus Mitchell, Chief Commissioner of the Australian Transport Safety Bureau (ATSB), said in a statement that an investigation had been launched into the collision.

Investigators from the ATSB’s offices in Brisbane and Canberra will be deployed to the scene to gather evidence, examine the wreckage and map the site, as well as interview witnesses and involved parties, Mitchell added.

He asked people who witnessed the collision or saw the helicopters in flight to contact investigators. A preliminary report will come in the next six to eight weeks, with a final report after the investigation is complete, he said.

In a statement posted on Twitter, Queensland Premier Annastacia Palaszczuk expressed her “deepest sympathies” for the victims’ families and everybody affected. “What has happened on the Gold Coast today is an unthinkable tragedy,” she said.

Police say Sea World Drive has been closed to traffic and urged motorists and pedestrians to avoid the area.

Sea World Drive is the main access point for the marine park that’s popular with tourists on the heart of the Gold Coast. It’s peak tourist season in the region right now, with schools closed for the long summer break.

CNN has reached out to Sea World for comment.

source

Companies can ‘hire’ a virtual person for about $14k a year in China

US Top News and Analysis 

Virtual singer Luo Tianyi performing with world renowned pianist Lang Lang in 2019 at the Mercedes-Benz Arena in Shanghai, China. Launched in 2012, Luo Tianyi has nearly 3 million fans and even performed at the Winter Olympics opening ceremony in Beijing this year.
Visual China Group | Getty Images

BEIJING — From customer service to the entertainment industry, businesses in China are paying big bucks for virtual employees.

Tech company Baidu said the number of virtual people projects it’s worked on for clients has doubled since last year, with a wide price range of as little as $2,800 to a whopping $14,300 per year.

Virtual people are a combination of animation, sound tech and machine learning that create digitized human beings who can sing and even interact on a livestream. While these digital beings have appeared on the fringes of the U.S. internet, they’ve been popping up more and more in China’s cyberspace.

Some buyers of virtual people include financial services companies, local tourism boards and state media, said Li Shiyan, who heads Baidu’s virtual people and robotics business.

As the tech improves, costs have dropped by about 80% since last year, he said. It costs about 100,000 yuan ($14,300) a year for a three-dimensional virtual person, and 20,000 yuan for a two-dimensional one.

Li expects the virtual person industry overall will keep growing by 50% annually through 2025.

VIDEO6:2806:28
What is the metaverse and why are billions of dollars being spent on it?

China is pushing hard into the development of virtual people.

Beijing city announced in August a plan to build up the municipal virtual people industry into one valued at more than 50 billion yuan by 2025. The municipal authorities also called for the development of one or two “leading virtual people businesses” with operating revenue of more than 5 billion yuan each.

This fall, central government ministries released a detailed plan for incorporating more virtual reality – especially in broadcasting, manufacturing and other areas. The country’s latest five-year plan revealed last year included a call for more digitalization of the economy, including in virtual and augmented reality.

Searching for scandal-free icons

From a business perspective, much of the focus is on how virtual people can generate content.

Brands in China are looking for alternative spokespeople after many celebrities recently ran into negative press about tax evasion or personal scandals, said Sirius Wang, chief product officer and head of marketplace Greater China at Kantar.

Dancers perform with virtual digital people at the Future Life Festival 2022 in Hangzhou, China, on Nov. 4, 2022.
Future Publishing | Future Publishing | Getty Images

At least 36% of consumers had watched a virtual influencer or digital celebrity perform in the last year, according to a survey published by Kantar this fall. Twenty-one percent had watched a virtual person host an event or broadcast the news, the report said.

Looking ahead to next year, 45% of advertisers said they might sponsor a virtual influencer’s performance or invite a virtual person to join a brand’s event, according to the Kantar report.

Growing development of virtual people

Many of China’s large tech companies have already been developing products in the virtual humans industry.

Video and game streaming app Bilibili was one of the earliest to take the concept of virtual people mainstream.

The company acquired the team behind virtual singer Luo Tianyi, whose image and sound are fully created by tech. This year, the developers focused on improving the texture of the virtual singer’s voice by using an artificial intelligence algorithm, according to Bilibili.

VIDEO2:2602:26
EU Privacy regulators recommend new data limitations for Meta

Launched in 2012, Luo Tianyi has nearly 3 million fans and even performed at the Winter Olympics opening ceremony in Beijing this year.

Bilibili also hosts many so-called virtual anchors, which are the direct avatars of people using special technology to reach their audience. The company said 230,000 virtual anchors started broadcasting on its platform since 2019, and the virtual anchors’ broadcasting time this year surged by about 200% from last year.

Tencent said in its latest earnings call that Tencent Cloud AI Digital Humans provide chatbots to sectors such as financial services and tourism for automated customer support. The company’s Next Studios also developed a virtual singer and virtual sign language interpreter.

Far smaller companies are also getting into the industry.

Startup Well-Link Technologies — whose cloud rendering tech support for Chinese video game developer miHoYo brought it success in the gaming industry — announced this year it has developed yet another model of a virtual person in a joint venture with Haixi Media.

Read More 

The boldest bitcoin calls for 2023 are out — and a 1,400% rally or a 70% plunge may be on the cards

US Top News and Analysis 

A worsening macroeconomic climate and the collapse of industry giants like FTX and Terra have weighed on bitcoin’s price this year.
STR | Nurphoto via Getty Images

2022 was a rough year for crypto. More than $1.3 trillion was wiped off the value of the market. And bitcoin, the world’s largest digital coin, saw its price slump more than 60%.

Investors were caught off guard by a wave of collapses in the industry from stablecoin project terraUSD to crypto exchange FTX, as well as a worsening macroeconomic climate. Those who made predictions about bitcoin’s price in the past year really missed the mark.

But with 2023 almost upon us, some market players have stuck their neck out with price calls for what could be another volatile year.

Interest rates around the world are on the rise, and that’s weighing on risk assets like stocks and bitcoin. Investors are also watching how the FTX saga, which resulted in the arrest of the company’s founder Sam Bankman-Fried in the Bahamas, will develop.

CNBC rounds up some of the boldest price calls for bitcoin in 2023.

Tim Draper: $250,000

Bitcoin bull Tim Draper had one of the most optimistic calls on bitcoin of 2022, predicting the token would be worth $250,000 by the end of the year.

In November, the billionaire venture capitalist said he’s extending the timeline for that prediction until mid-2023. Even after the collapse of FTX, he’s convinced the coin will hit the quarter-of-a-million milestone.

“My assumption is that since women control 80% of retail spending, and only 1 in 7 bitcoin wallets are currently held by women that the dam is about to break,” Draper told CNBC via email.

Bitcoin would need to rally 1,400% in order for it to trade at that level.

Despite the depressed prices and trading volumes drying up, there could be reason to suspect the market has found a bottom, according to Draper.

“I suspect that the halvening in 2024 will have a positive run,” he said.

VIDEO9:5609:56
FTX’s collapse is shaking crypto to its core. The pain may not be over

The halvening, or halving, is an event that happens every four years in which bitcoin rewards to miners are cut in half. This is viewed by some investors as positive for bitcoin’s price, as it squeezes supply. The next halving is slated to happen sometime in 2024.

Bitcoin miners, who use power-intensive machines to verify transactions and mint new tokens, are being squeezed by the slump in prices and rising energy costs.

These actors accumulate massive piles of digital currency, making them some of the biggest sellers in the market. With miners offloading their holdings to pay off debts, that should remove most of the remaining selling pressure on bitcoin.

That’s historically a good sign for bitcoin, said Vijay Ayyar, vice president of corporate development at crypto exchange Luno.

“In prior down markets, miner capitulation has usually indicated major bottoms,” Ayyar told CNBC. “Their cost to produce becomes greater than the value of bitcoin, hence you have a number of miners either switching off their machines … or they need to sell more bitcoin to keep their business afloat.”

“If the market reaches a point where it’s absorbing this miner sell pressure sufficiently, one can assume that we’re seeing a bottoming period.”

Standard Chartered: $5,000

For some market participants, the worst is yet to come.

In a Dec. 5 research note, Standard Chartered said bitcoin may sink as low as $5,000. The prediction, one of the bank’s list of “surprises” that are being “under-priced” by markets, would represent a 70% plunge from current prices.

“Yields plunge along with technology shares” in Standard Chartered’s nightmare 2023 scenario, “and while the Bitcoin sell-off decelerates, the damage has been done,” said Eric Robertsen, the bank’s global head of research.

“More and more crypto firms and exchanges find themselves with insufficient liquidity, leading to further bankruptcies and a collapse in investor confidence in digital assets,” he added.

Robertsen said the scenario has a “non-zero probability of occurring in the year ahead” and falls “materially outside of the market consensus or our own baseline views.”

Mark Mobius: $10,000

Veteran investor Mark Mobius had a relatively successful 2022 in terms of his price call. In May, he forecast bitcoin would drop to $20,000 when it was trading above $28,000.

Loading chart…

He said bitcoin would fall to $10,000 in 2022. That did not happen. However, Mobius told CNBC that he is sticking for his $10,000 price call in 2023.

The investor, who made his name at Franklin Templeton Investments, told CNBC that his bear case for bitcoin stemmed from rising interest rates and general tighter monetary policy from the U.S. Federal Reserve.

“With higher interest rates, the attraction of holding or buying Bitcoin or other cryptocurrencies becomes less attractive since just holding the coin does not pay interest,” Mobius said via email.

Carol Alexander: $50,000

Carol Alexander, professor of finance at Sussex University, wasn’t far off the mark with her prediction that bitcoin would slip to $10,000 in 2022.

Now, she thinks the cryptocurrency could be set for gains — but not for reasons you might expect.

The catalyst would be more dominos from the FTX fallout tipping over, Alexander said. If this happens, she expects the price of bitcoin will top $30,000 in the first quarter, and then $50,000 by quarters three or four.

“There will be a managed bull market in 2023, not a bubble — so we won’t see the price overshooting as before,” she told CNBC.

“We’ll see a month or two of stable trending prices interspersed with range-bounded periods and probably a couple of short-lived crashes.”

Alexander’s reasoning is that, with trading volumes evaporating with traders on edge, large holders known as “whales” will likely step in to prop up the market. The wealthiest 97 bitcoin wallet addresses account for 14.15% of the total supply, according to fintech firm River Financial.

VIDEO4:2404:24
FTX’s collapse was a punch in the face for crypto, but not a knockout blow, analyst says

Some investors have given up trying to predict the price of bitcoin. For Antoni Trenchev, CEO of crypto lending platform Nexo, the recent events are a sobering moment.

Bitcoin was on a “positive path” earlier in 2022, with institutional adoption rising, but “a few major forces interfered,” he said.

Trenchev once predicted bitcoin surging to a peak of $100,000 by early 2023. Now, he’s done trying to predict the price.

Laith Khalaf, financial analyst at AJ Bell, suggested attempts to forecast bitcoin’s price are futile.

“We could be sitting here talking this time next year and it could be at $5,000 or 50,000 it just wouldn’t surprise me because the market is so heavily driven by sentiment,” he told CNBC’s “Squawk Box Europe.

Read More