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China’s startups can reinvent fewer wheels

17 August 2018

Beijing-based Redcore admits its "100-percent" homegrown browser has a Google base. Its programmers are the latest to dress up open-source software as Chinese, seeking state support. A clumsy localisation strategy does little for security, and distracts from real innovation.

Walmart sharpens as Amazon efficiency edge dulls

16 August 2018

The $270 bln retailer increased quarterly sales 4 pct. That pales next to its Seattle rival’s latest 39 pct rise. But Walmart’s workers are as productive as ever while Amazon is employing many more, and getting less in return, as it expands stores, warehouses and distribution.

Google’s China re-entry plan looks evil and risky

2 August 2018

The internet giant is planning a censored search engine for China, The Intercept reports. Taking share from local champions like Baidu could prove profitable. But Beijing wants to get its hands on Google's AI expertise. Morality aside, a return would be dangerous business.

Baidu’s core strength exercise is underappreciated

1 August 2018

The $85 bln Chinese search giant delivered 45 pct earnings growth last quarter, having shed a few distractions. The market is still cautious on Robin Li’s big AI plan as economic headwinds loom. But applying machine learning to content delivery - and censorship – should pay off.

Amazon’s growth is leaving the shop behind

26 July 2018

Jeff Bezos's outfit gets only about half its revenue from its online stores, down from two-thirds two years ago. E-commerce is growing, but the businesses Amazon has built around it are expanding faster and producing much more profit. That makes its valuation a little less crazy.

Chinese shopping-app IPO travels long last mile

17 July 2018

Shanghai-based Pinduoduo is seeking a $20 bln valuation in a New York debut. Sales are surging, but its social-networking e-commerce business model targeted at lesser-known areas of China may perplex overseas investors. Unwelcome comparisons to Groupon and Zynga are possible.

Xiaomi IPO will punish bankers twice

9 July 2018

The Chinese smartphone-maker’s shares opened below the issue price in their $54 bln debut. It’s not the start tech companies covet. Advisers failed to sufficiently lower an unrealistic valuation goal. Their penalty may be that other big listings in Hong Kong are delayed.

European TV can only dream of rivalling Netflix

5 July 2018

Broadcasters like ProSieben, ITV and Mediaset are losing viewers to streaming services and ad dollars to Google and Facebook. Together they could invest more efficiently in technology, but Europe’s fragmented market makes content hard to share. They look doomed to steady decline.

Tech backlash grows in Silicon Valley’s back yard

2 July 2018

California will force internet companies like Google to give consumers more control over their information and stop it being sold to third parties. The law is narrow but the Golden State is often a litmus test for legislation that takes hold nationwide.

Australia’s ban on Huawei would be a costly call

29 June 2018

Having passed a law on foreign meddling in its politics, Canberra now looks set to block the Chinese telecom giant from working on its next-generation mobile network. There are valid concerns. But a ban carries costs: pricier 5G, and worsening ties with its best export customer.

India will test Xiaomi’s two-pronged strategy

21 June 2018

The Chinese maker of affordable phones has scaled down its IPO with plans now to raise $6 bln. Much of the valuation hangs on internet services, which Xiaomi is starting to roll out in its top overseas market. Rivals in India are plentiful, though, and hungrier for content.

Buffett and pals pick good medic for U.S. tapeworm

20 June 2018

Berkshire Hathaway, Amazon and JPMorgan chose Atul Gawande to lead their fight against rising medical bills. The surgeon has written extensively on how the system rewards excess, but not outcomes. Changing this focus would be a good start, even if neither easy nor sufficient.

SoftBank’s $5 bln staff whip-round could backfire

20 June 2018

Masayoshi Son’s team could kick in that kind of money, using big slugs of debt, to help the Vision Fund hit $100 bln. Having so much skin in the game might prod the giant investment vehicle to spend more cautiously. It could also spell employee disillusionment if deals blow up.

Google takes JD.com to lunch to discuss Amazon

18 June 2018

The U.S. search firm’s $550 mln investment won’t buy much direct influence over the Chinese internet retailer. It’s more a hint that Google’s strategically flighty parent, the $800 bln Alphabet, hasn’t forgotten about taking on Amazon and Alibaba – and someday returning to China.

Holding: As AT&T case ends, trustbuster woes begin

13 June 2018

Donald Trump’s Justice Department lost its bid to stop the telco’s $85 bln Time Warner merger, battering DOJ’s Obama-era image as tough but savvy. Weak legal claims baffled experts and stalled other deals. The watchdog can expect fresh charges of putting politics over the law.

Look who’s sitting out the media M&A game

13 June 2018

AT&T will soon close its $85 bln deal for Time Warner. Comcast and Disney may fight over Fox. And yet among the big deals at least for now, Netflix, Amazon and Facebook are nowhere to be found. Their absence from the feeding frenzy may hint at the prospects for these mergers.

Adyen’s $17 bln pop flags bipolar IPO market

13 June 2018

The Dutch payments group’s shares doubled on its market debut, defying a recent trend for flops like publisher Springer Nature. It shows investors are putting a premium on companies that promise growth. The risk is that, as with Adyen, they end up giving away most of the upside.