Amazon and Walmart get caught in India’s web 1 Feb 2019 The U.S. titans will be limited to operating marketplaces and prevented from being online retailers under New Delhi’s rules. That opens the door for billionaire Mukesh Ambani to power ahead with his own e-commerce plans. The miscalculation by Amazon and Walmart could be costly.
Viewsroom: Why did PG&E file for bankruptcy? 31 Jan 2019 The California utility may face up to $30 bln in wildfire costs. But shareholders see value and lenders were willing to stump up cash. The board’s desire to cut other expenses may have driven the decision. Plus: How U.S. charges against Huawei may affect the telco industry.
Nokia valuation lacks Huawei boost 31 Jan 2019 Like Sweden’s Ericsson, the Finnish telecom-kit maker will gain if the Chinese rival is shut out of more markets. Yet Nokia’s valuation is lower than for much of last year and CEO Rajeev Suri expects a so-so 2019. A European ban on Huawei would change that.
Nintendo brushes up gaming skills for 2019 31 Jan 2019 The $36 bln Japanese video-games giant smashed quarterly earnings expectations thanks to new titles. Even after cutting its Switch console sales target, the maker of Super Mario hits looks on track to challenge rival Sony’s PS4. Nintendo’s beaten-down shares are due a boost.
Foxconn’s U.S. debacle offers an economics lesson 31 Jan 2019 The iPhone maker and Wisconsin taxpayers made a $10 bln bet on a manufacturing revival in the United States. Now Terry Gou's outfit says making flat screens there is uncompetitive, and jobs will be in research and design. It's a reality check for Donald Trump's industrial dream.
Microsoft floats above tech downdraft 30 Jan 2019 The software giant, at some $820 bln vying to be the most valuable company, racked up another quarter of strong growth and profit as more business moved to the cloud. The shift has years to go and could accelerate in a recession. Microsoft’s lesser regulatory worries are a bonus.
Alibaba powers on with small things 30 Jan 2019 Quarterly sales grew 41 pct, the weakest pace in three years. But there’s still momentum in Jack Ma’s retail juggernaut. China’s wider slowdown has been marked by tepid demand for big-ticket items like iPhones. Everyday purchases like groceries and apparel are propelling Alibaba.
Apple cash and services salve iPhone worries 29 Jan 2019 The tech giant’s holiday quarter was dismal, as warned. A 5 pct sales drop shows Tim Cook’s company can no longer expect to sell significantly more phones or jack up prices. But rising margins on services for iPhone users and hefty capital returns buys Apple time to refresh.
The Exchange: Joseph Tsai 29 Jan 2019 Alibaba’s co-founder and executive vice chairman joins Breakingviews to reveal what the future holds for the $400 billion tech giant. As investors fret over economic uncertainties, Tsai also tackles the recent fallout from Huawei, a bruising trade war and the case for tax cuts.
Europe’s telcos have 20 bln reasons to love Huawei 29 Jan 2019 Ditching the Chinese supplier could push up costs for the region’s carriers, and knock 7 pct off their market value. Politicians may deem that a price worth paying to ensure the security of mobile networks. Yet slow-growing, debt-heavy telcos hardly need another cash flow hit.
Philips could be a tortoise to Healthineers’ hare 29 Jan 2019 The 31 bln euro Dutch medical tech group has a lower valuation and operating margin than its larger German peer. Steady growth and a Healthineers stumble could help it close the gap. Global ageing should lift both companies, though Philips has the greater recovery potential.
U.S. Huawei charges test trade deal appetite 28 Jan 2019 The Justice Department indicted the Chinese telecom firm for fraud just before crucial U.S.-Chinese talks on tariffs. Presidents Trump and Xi are already facing choppy markets and a slowing economy. Their reaction to Huawei will show if they truly want to avert a trade war.
Mark Zuckerberg still doesn’t get the message 28 Jan 2019 The Facebook founder may knit together the technology behind communication tools including WhatsApp and Instagram. That could help bolster user numbers but would risk aggravating privacy concerns. Moves to strengthen the company’s dominance are unlikely to regain people’s trust.
Review: The hollowing out of white-collar work 25 Jan 2019 New technologies and international trade have been disrupting jobs for some time. Now automation and global competition will do the same thing to Western services industries, Richard Baldwin argues in “The Globotics Upheaval”. Dysfunctional democracies are ill-prepared to cope.
Chasing $13 bln Nexon throws Tencent off its game 25 Jan 2019 The Chinese titan behind “League of Legends” is eying control of its rival, which makes “Counter-Strike.” Tencent probably could help Nexon move faster from PCs to mobile. But slower industry growth and a Beijing crackdown suggest boss Pony Ma would be wiser to focus elsewhere.
Big Brother startups offer white knuckle returns 24 Jan 2019 Facial recognition startups SenseTime and Megvii are in fundraising mode. Video surveillance in China is tipped to be a $20 bln industry by 2022. Sticky questions could result in volatile valuations, but Beijing’s resolve to watch its citizens closely will drive growth.
Evergrande’s desperation to drive could find road 24 Jan 2019 The Chinese conglomerate’s health unit is making another quirky bet on electric vehicles as the property market at its core stalls. Yet a $900 mln move for NEVS might make more sense than earlier purchases if Evergrande can use it to help startups overcome production problems.
Viacom zigs as wannabe Netflix peers zag 23 Jan 2019 The MTV owner is buying a free streaming-TV service for $340 mln. That’s chump change compared with the $180 bln Disney, AT&T and Comcast have collectively spent on media deals to keep pace with Reed Hastings’s firm. Low-budget Viacom is wisely choosing a less-traveled path.
Elliott puts eBay’s parts up for auction 22 Jan 2019 The $30 bln online merchant has a history of spinning off bits of itself. It has, though, missed opportunities in its core business. While the activist may persuade eBay to offload StubHub, for example, the big payoff could be selling the marketplace unit to a buyer like Walmart.
Slimmed-down TomTom is now an alluring M&A target 22 Jan 2019 The Dutch company is selling a van-data unit for $1 bln, or more than half the whole group’s market value. That makes its core digital-map business look cheap. With Big Tech and auto giants hoping to dominate software for cars of the future, TomTom may struggle to stay solo.