Issue #57

Qatar attracts investors with sovereign wealth, European stocks outperform US, YC startup goes viral, and more. 

News from February 20 - February 27, 2025

Qatar Attracts Investors with Sovereign Wealth 

Qatar's sovereign wealth fund is deploying nearly half of its $1 billion fund of funds to attract venture capital firms to Doha. The Qatar Investment Authority (QIA), with estimated assets of $500 billion, aims to establish Doha as a regional VC hub while diversifying the nation's economy beyond fossil fuels.

The initiative mirrors strategies of other Gulf monarchies like Saudi Arabia and Abu Dhabi, which leverage petrodollars to entice financial firms. The QIA has backed six VC firms including Builders VC and B Capital, requiring them to contribute to Qatar's ecosystem by establishing local offices or creating training programs.

While Qatar boasts immense wealth from natural gas and gained visibility from hosting the 2022 World Cup, it remains selective about partnerships. Of 120 applications vetted, only 14 reached final discussions, with the QIA rejecting those without genuine commitment to developing Qatar's startup ecosystem.

Source

Birkenstocks Ruled Not Works of Art 

Germany's top court ruled on Thursday that Birkenstock sandals cannot be classified as works of art, denying them strong copyright protections. The German sandal maker had sought to stop three competitors from selling similar products by having them pulled from shelves and destroyed.

The federal court in Karlsruhe upheld a lower court's judgment, stating Birkenstock's footwear lacked the "individuality" required for copyright protection as "works of applied art." The court noted that "pure craftsmanship using formal design elements" was insufficient, concluding a legal battle that began in May 2023.

Founded in 1774 as an orthopedic footwear company, Birkenstock has transformed its once-unglamorous sandals into coveted fashion items worn by celebrities like Katy Perry and featured in films like "Barbie." In 2021, the family sold its majority stake to L Catterton and Bernard Arnault's holding fund before launching on the New York Stock Exchange in 2023.

Source 

European Stocks Outperform US 

European stocks have outperformed US markets since Trump's inauguration, with the Stoxx Europe 600 gaining 5.2% versus the S&P 500's 2.5%. Analysts attribute this unexpected strength to Trump's delay in imposing EU tariffs and potential Ukraine peace talks.

This represents Europe's best start to a year since the late 1980s and strongest US-relative performance in nearly a decade. Financial, defense, and luxury sectors have benefited, with Rheinmetall up 28% and Richemont rising 10%.

However, markets remain vulnerable after Trump threatened 25% tariffs on European cars, pharmaceuticals, and chips, causing stocks to fall Wednesday.

Source 

Bulletin Board 

• AI Used to Write CVs. UK ministers are developing AI tools to help jobseekers write CVs and covering letters, freeing Jobcentre staff to handle complex cases and reduce welfare costs. This supports Labour's goal of boosting employment to 80%. With 16,500 coaches managing over 100 claimants each across 650 jobcentres, resources are stretched thin. Ironically, DWP's own guidance calls AI-written cover letters "unacceptable" for its job applicants. Source 
• Apple To Create 20,000 US Jobs. Apple plans to hire 20,000 additional US staff over four years as part of a $500 billion American investment plan, making CEO Tim Cook the latest business leader courting President Trump with major announcements. The investment includes regular supplier spending, data centers, and new initiatives like a Michigan manufacturing academy. Apple will also open a Houston facility to build AI servers. This mirrors Apple's 2018 pledge of a $350 billion "direct contribution" to the US economy following Trump's first election. Source 
• YC Startup Goes Viral. Y Combinator startup Optifye.ai sparked controversy with a demo showing AI cameras monitoring factory workers, leading YC to delete the video from social media. The footage depicted co-founders roleplaying as managers confronting "Number 17" about 11.4% efficiency. Critics called it "sweatshops-as-a-service," highlighting anxieties about workplace surveillance despite continued VC investment in similar "bossware" technologies like Invisible AI's $15 million raise in 2022. Source
• Trump Puts 25% Tariff on EU. President Trump announced 25% tariffs on European Union imports, claiming the bloc was created to "screw" the US. At his cabinet meeting, he criticized the EU for rejecting American products while accepting European goods. The European Commission promised to "react firmly" against "unjustified barriers to trade," while European leaders dismissed Trump's historical understanding of the EU's formation as "seriously distorted," noting it was established to prevent war. Source 
• UK’s Fraud Office Rejects Canary Wharf. The UK's Serious Fraud Office has scrapped plans to relocate from Trafalgar Square to Canary Wharf, prioritizing its resources for operational improvements instead. The prosecutor received £9.3 million in additional funding in November to enhance its case management systems and create a new asset confiscation team. The decision, approved by the attorney-general, comes as the agency faces financial constraints while managing complex cases that typically take over four years and involve 5 million documents, despite its modest £88.9 million budget for 2025-26. Source 

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