Technology

Apple’s march from China is long and inevitable

19 June 2019

The idea of the iPhone maker shifting 30% of production elsewhere may concentrate minds as the U.S. and China square up in trade talks. Such a move would take years. Detroit and London show economic clusters rarely implode. But they can erode, and the process is hard to stop.

Second front opens in Vivendi’s Italian campaign

19 June 2019

Silvio Berlusconi’s plan to create a 4 bln euro pan-EU broadcaster from Mediaset could mute the influence of its French media rival in the new group. Vincent Bolloré’s firm, which may also be diluted by Rome in Telecom Italia, is getting a taste of its own cooking in Italy.

Gender pay gap deserves GAAP accounting

19 June 2019

Alphabet is the latest to oppose a shareholder call for it to report the difference between median male and female pay. Many companies publish data by job categories to deny sexism, but that sidesteps a lack of women at the top. Fuller numbers would help get at the real problem.

Lowball Nordic IT sale gives Apax a better exit

18 June 2019

The buyout firm accepted a lowly 1.3 bln euro cash-and-shares offer for Norwegian computer services firm Evry from Finnish rival Tieto. The measly 15% premium is less than half the value created by cost savings. Still, a 20% stake in the combined group should be easier to sell.

Sweden provides a cautionary digital tale for HSBC

18 June 2019

Hong Kong’s new online banking licences open the UK-based titan to new challenges in a market that accounts for 30% of pre-tax profit. Scandinavian giants such as Swedbank quickly fell prey to startups. And HSBC will be up against the likes of tech-savvy Alibaba and Tencent.

The Exchange: John Delaney

17 June 2019

The first Democrat to bid for 2020’s presidential election has a pitch rarely heard in today’s political slugfest: that Democrats and Republicans can get along. Despite being a peacemaker, the former Maryland congressman has some punchy views on China, Big Tech and drug prices.

Ride-hailing misses the U.S. IPO bus

17 June 2019

Lyft and Uber are rare laggards among 2019 debutants. Plant-based burger maker Beyond Meat is the top performer, but others involve video chats, online retailing, cybersecurity, and plain old blue jeans. Investors see a bright future – except perhaps in the overhyped gig economy.

Rome can get edge on Paris with network M&A

17 June 2019

Telecom Italia may buy rival network provider Open Fiber. A deal could revive its fortunes by taking out a competitor. And a valuation of over 2 bln euros would allow the government, a shareholder in both, to secure control of the telco, at the expense of French rival Vivendi.

Toyota uses financial heft to hedge green bets

17 June 2019

The $176 bln behemoth is spreading clean energy investments across pure electric cars and hybrids as well as hydrogen, partnering with rivals like Subaru to reduce costs. The company’s sheer scale makes the strategy feasible, but Nissan’s more conventional solution is a threat.

Broadcom flashes a broader economic warning

14 June 2019

The $105 billion chipmaker’s woes extend far beyond the U.S. ban on exports to China’s Huawei. Broadcom’s rapid expansion has made it a supplier to everybody from mobile phone firms to telcos to the auto industry. When their demand for chips declines, growth often slows too.

Review: Why an AI apocalypse could happen

14 June 2019

Elon Musk and Stephen Hawking have warned that superintelligent machines could destroy humanity. In "The AI Does Not Hate You", journalist Tom Chivers offers a terrifying primer on why they should be taken seriously. Governments and companies, though, still need convincing.

Dan Loeb pushes a hidden Sony jewel into the light

14 June 2019

The activist behind Third Point wants the $60 bln Japanese conglomerate to spin off its chips business. It's a sensible step to simplify the sprawl, even with trade tensions and cooling tech demand today. Autonomous cars and snazzy smartphones make its long-term prospects shiny.

Silicon Valley struggles to crack the D.C. code

13 June 2019

Alphabet is the latest big tech firm to revamp its Washington lobbying. Google’s parent is also spending more, doling out $22 mln last year. Facebook and others are doing the same. Until they show they are engineering change within, their effort to sway outsiders will fall flat.

Pulled IPO sets grim tone for Hong Kong markets

13 June 2019

Warehouse operator ESR shelved plans for a $1.2 bln float, a day after police and demonstrators clashed violently in the Asian financial centre. A high price was one issue, but unrest plus economic headwinds formed a perfect storm. It’s a bad sign for others in the queue.

China audit crackdown is a Wall Street nightmare

13 June 2019

U.S. Senator Marco Rubio wants to force mainland companies listed on American exchanges to submit to local oversight - or leave. The problem is real. But torching shares with a market value of roughly $1.8 trln and millions in fees is a heavy price to pay for transparency.

Dassault’s drug data wager relies on heady growth

12 June 2019

The French software group is buying U.S. peer Medidata for $5.8 bln. The deal boosts Dassault’s exposure to the hot trend of using big data to develop and test drugs. But likely modest synergies and the rich price mean investors will have to wait years for the deal to pay off.

Credit Suisse gets closer to real Alibaba trophy

12 June 2019

The tech giant has picked the Swiss bank, along with part-owned CICC, to lead a $20 bln Hong Kong share sale. Both have largely stayed clear of Alibaba rivals, suggesting loyalty is being rewarded. They are now positioned to contest a bigger prize: $150 bln Ant Financial’s IPO.

Jeff Bezos adds fasting to meal-delivery menu

11 June 2019

He’s closing Amazon Restaurants after it failed to get much business. That leaves the likes of Grubhub, Uber and DoorDash trying to dominate a capital-hungry market with ever decreasing margins. Leaving them at the table looks like the smart move.

Foxconn leaves room for governance improvement

11 June 2019

Taiwan's $32 bln iPhone assembler has missed an opportunity with its first investor day. A management rejig is encouraging, but stops short of a succession plan. Worse, it fails to clarify departing boss Terry Gou’s future role. Shareholders will be left only a little wiser.

Tech can help uncover the basics of basic income

10 June 2019

Seed-capital guru Y Combinator is the latest to study the pros and cons of giving people a guaranteed monthly stipend. Its project is bigger, longer and less restrictive than the Finnish state’s or the U.S. city of Stockton’s. The higher standard should yield more useful results.