Table of Contents

• US Banks release earnings data

• AT&T Hack

• X accused of breaking DSA rules

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Economy & Finance

US Banks release earnings data

The second-quarter earnings reports for major U.S. banks, including JPMorgan Chase, Citigroup, and Wells Fargo, revealed growth in profits and revenues, generally surpassing Wall Street expectations. JPMorgan Chase reported strong earnings per share and adjusted revenue, despite a slight drop in total deposits, with CEO Jamie Dimon cautioning about geopolitical risks and inflation. Wells Fargo exceeded revenue expectations but fell short on net interest income, leading to a significant drop in its stock. Citigroup's lower expenses and higher-than-expected revenue and profits showcased progress in its corporate overhaul. Despite these positive results, the stocks of all three banks fell, reflecting market concerns about future earnings amidst potential interest rate cuts by the Federal Reserve. Overall, the broader bank sector saw modest gains, with regional banks slightly outperforming.

Technology

AT&T Hack 

A hacker accessed and downloaded call and text-message data from nearly all AT&T Wireless customers, the company revealed. The breach, which involved data stored on a third-party cloud platform, affected records from May to October 2022 and January 2023. Although the content of the communications was not compromised, phone numbers were included, raising privacy concerns. AT&T is cooperating with the Justice Department, FBI, and FCC in the investigation, and has taken steps to secure its systems. The breach highlights vulnerabilities and the need for stronger cybersecurity measures in the telecommunications industry.

X accused of breaking DSA rules

The European Commission has accused Elon Musk’s company, X, of misleading users and violating the Digital Services Act (DSA). An investigation found X guilty of employing deceptive dark patterns, failing in advertising transparency, and not granting data access to researchers as required. The commission criticized the blue checkmark verification process, which can be easily abused. Elon Musk claimed on X that the company was offered a deal to avoid fines by censoring speech, which they refused. If the accusations are confirmed, X could face fines up to 6% of its global revenue. The EU is also investigating similar breaches by TikTok, AliExpress, and Meta.

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