An attendee checks a smartphone whilst walking past Al Wasl dome in the Blue Zone ahead of the COP28 climate conference at Expo City in Dubai, United Arab Emirates, on Wednesday, Nov. 29, 2023. More than 70,000 politicians, diplomats, campaigners, financiers and business leaders will fly to Dubai to talk about arresting the world’s slide toward environmental catastrophe.
Hollie Adams | Bloomberg | Getty Images
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What you need to know today
Tortuous China growth
China’s factory activity contracted for a second straight month in November, while non-manufacturing activity hit yet another new low this year, signaling that the world’s second-largest economy was still not out of the woods and may require more policy support. The official manufacturing purchasing managers’ index unexpectedly inched lower to 49.4 in November from 49.5 in October, according to data from the National Bureau of Statistics released Thursday. This was slightly lower than the median forecast of 49.7 in a Reuters poll.
Rebooting OpenAI
Microsoft will have a non-voting board seat at OpenAI, the company announced Wednesday. The move quells some of the remaining questions about Microsoft’s interest in the startup after a turbulent month that saw the company’s controlling non-profit board fire and then re-hire CEO Sam Altman. Earlier, Microsoft did not have official representation on the board of directors that controlled the startup, and was blindsided by OpenAI firing Altman.
Auto unionization
The United Auto Workers union is launching an unprecedented campaign to organize 13 non-unionized automakers — including Tesla, Volvo, BMW, Mercedes-Benz, Hyundai, Honda and Toyota — in the U.S. in a drive that will cover nearly 150,000 autoworkers from after securing record contracts with the Detroit automakers. Meanwhile, shares of General Motors popped 9% Wednesday after the company said it was working to regain Wall Street’s confidence heading into 2024 with several investor-focused initiatives following a tumultuous year of labor strikes and setbacks in its plans for electric and autonomous vehicles.
[PRO] Golden crosses
Three stocks are on the verge of taking off, according to a chart pattern closely watched by technical analysts. The phenomenon, known as a “golden cross,” occurs when a stock’s 50-day moving average share price rises above the longer-term 200-day moving average. Wall Street regards the pattern as a bullish sign for a potential rally.
The bottom line
The heat is clearly on.
On the eve of the United Nations’ biggest and most important annual climate conference, the United Arab Emirates on Wednesday hit back at what it described as “fake news” designed to undermine its work as the host of the COP28 climate conference.
The UAE organizers slammed a number of fake press releases in the name of COP28 and other entities. Among them, a bogus letter claiming COP28 president-designate Sultan Al-Jaber was poised to step down from his position as chief executive of state oil giant ADNOC (the Abu Dhabi National Oil Co.) “with immediate effect” from Thursday.
Al-Jaber’s appointment as COP28 president-designate had provoked a furious backlash from climate activists and civil society groups when it was first announced.
Al-Jaber on Wednesday pushed back over reports earlier in the week that said the UAE planned to use its role as the host of the climate summit as a platform to lobby foreign government officials for oil and gas deals.
Even so, the COP28 summit, which starts on Thursday and is scheduled to run through to Dec. 12, will provide a critical forum for government officials, business leaders and campaign groups to accelerate action to tackle the climate crisis.
Meanwhile, also on Thursday, the influential Organization of Petroleum Exporting Countries and its allies will convene to decide next production policy steps in a postponed virtual meeting overshadowed by conflict in the Middle East, internal disgruntlement and the imminent expiry of a key Saudi supply cut.
UAE, one of the world’s major oil producers and a key OPEC+ component, is keen to burnish its reputation as a champion of the transition to green energy.
Tangible climate action though is the best way to push back all skepticism and cynicism. UAE and Al-Jaber could do no better than to start now.
— CNBC’s Sam Meredith and Ruxandra Iordache contributed to this report.