Daily Brief - 10 June 2024

US oil giants' big bets on shale: $194 Billion in deals sparks major industry shake-up

In the past year, major US oil companies like Exxon and Chevron have spent $194 billion on deals in the US shale industry, three times more than the previous year.

This buying spree is part of a wider trend of consolidation, reducing the number of publicly traded oil and gas firms from 65 to 41 in five years. Companies are focusing on the rich Permian Basin to boost production cheaply. With inflation and high interest rates, predictable returns from mergers are favoured over risky new explorations.

As a result, US oil firms are becoming more disciplined, prioritising shareholder returns and cash over rapid growth.

Apple gears up to challenge AI rivals with new innovations at WWDC

At its developers conference, Apple will showcase new AI features in its software updates, such as smarter Siri and tools to summarise notifications and messages. Although Apple pioneered AI with Siri in 2011, it now trails behind rivals like Google and OpenAI. The company is looking to catch up by integrating AI into iOS 18 and other systems. Apple plans a partnership with OpenAI for chatbot technology, aiming to leverage its large user base to stay competitive in the AI landscape. However, questions remain about how this might impact its lucrative deal with Google for search services.

Southern Europe’s comeback: from crisis to economic growth champions

Greece, Spain, and Portugal, once struggling economically, are now leading Southern Europe with growth rates more than twice the euro-area average. Companies like Moschos Olives in Greece are expanding and adopting clean energy, while Portugal and Spain see new businesses thriving. Despite past hardships and lingering scars, these nations have regained stability and improved their fiscal health. Their shift towards higher-value industries and renewed economic stability marks a significant turnaround from their crisis days.