Nikki Haley ends US Presidential campaign

Good morning. Here's what happened overnight and what you need to know today.

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1.

Groundhog day: Former South Carolina governor and US ambassador to the UN, Nikki Haley, has pulled out of the race for the US election, following sweeping defeats in Super Tuesday’s Republican primaries by Donald Trump. By midnight Wednesday, Trump had secured 995 of the required 1,215 delegates needed to secure the Republican nomination, while Nikki Haley had secured just 89. Haley did not endorse Trump when she announced the end of her campaign. Trump is now on the brink of securing enough delegates to win the Republican presidential nomination, setting up the US election for a head-to-head race with Joe Biden, a repeat of the 2020 US election. Despite prior acrimony, Senate Republican leader Mitch McConnell endorsed Trump overnight. (Associated Press)(Politico)

2.

China stimulus: Beijing has hinted that more liquidity support for China’s economy is likely during a briefing on Wednesday, and unexpectedly provided disclosures around the country’s trade data. An economic official said China had started the year on a strong note, with exports growing around 10% year-over-year in January and February. The data was disclosed one day before the country is due to publish its official trade data for January and February. At the news conference on Wednesday, governor of the People’s Bank of China, Pan Gongsheng, said that there is room to cut banks’ reserve requirements, while committing to prop up consumer prices and keeping the yuan stable. “China has a plentiful monetary-policy toolbox […] And its monetary policy still has ample space.” (Wall Street Journal)

3.

Biodata drama: Spain’s data protection regulator has demanded that Worldcoin immediately stops collecting personal information in the country and that it stops using data that has already been collected, according to an email seen by the Financial Times. Founder and CEO of AI giant, OpenAI, Sam Altman, co-founded the Worldcoin venture in 2019, which offers tokens of its own cryptocurrency to users in return for their consent to have their eyeballs scanned. Spanish data regulator, the AEPD, has given Worldcoin 72 hours to comply with the order, after flagging concerns about minors using the platform during 2023. The company currently has 4 million registered users. (Financial Times)

4.

Super benefits: Anthony Albanese’s government will unveil a new plan to pay super on government-paid parental leave from 2025 later today. Minister for Women Katy Gallagher will reveal the new commitment during her address at the National Press Club. The announcement comes after a long-standing campaign by from unions, superannuation funds, women’s equality groups and professional associations, and is an additional benefit to a previously-announced plan to expand paid parental leave to six months by 2026. (Capital Brief)

5.

Incoming cuts: Delivering remarks before the House Financial Services Committee, US Federal Reserve chair Jerome Powell has confirmed that the country is on track to cut rates later this year. Powell added that officials need to see more evidence of sustainably slowing inflation before rate reductions. He said that cuts will not be warranted until Fed officials have “gained greater confidence that inflation is moving sustainably” toward the central bank’s 2% goal. Powell explained that the central bank is balancing two key risks; that policy is eased too slowly and the economy collapses under higher interest rates, or that policy is eased too early, allowing inflation to become entrenched above the target rate. (Wall Street Journal)

6.

Uncontrolled AI: Microsoft engineer, Shane Jones, sent letters to the US Federal Trade Commission (FTC) and Microsoft’s board that outline concerns over the tech giant’s AI image tool, which is powered by OpenAI's DALL-E 3 model. The letters explain the concerns held by the engineer about Microsoft’s “approach to responsible AI.” In the letters, Jones states that the Copilot Designer tool can be used to create depictions of sexualisation, conspiracy theories, drug use, and misuse of corporate trademarks and copyrights among others. Jones began investigating the tool when discovered that he could bypass certain safety protocols that prevent the generation of harmful images in December last year. (Shane Jones’ Letter to the FTC (via LinkedIn))(Wall Street Journal)

7.

ACCC attention: App store marketplaces and video game developers are set to face new consumer law scrutiny over pricing from the ACCC. In the coming 12 months, Australia’s competition watchdog expects the government to grant the ACCC increased powers to tackle app stores through consumer law. Head of the ACCC, Gina Cass-Gottlieb recently penned an op-ed in the AFR, urging the government to bring forward the competition-law changes it recommended in 2022. In a speech scheduled for later today, Cass-Gottlieb is expected to say that consumer complaints have prompted the ACCC to look "at the video gaming industry in particular in-app purchases." (Capital Brief)

8.

Green SEC: The US Securities and Exchange Commission has adopted a landmark climate rule after two years of debate and intense Republican opposition. The regulatory body adopted a rule that will force public companies to disclose climate-related risks (Scope 3 emissions), aiming to set a new standard for the way companies communicate with investors about environmental and transition related concerns. The vote was approved by three Democratic members of the SEC (including chair Gary Gensler), and was opposed by both Republican commissioners. (Reuters)