Tesla-BYD rivalry is mostly manufactured, for now 3 Jan 2024 Elon Musk’s outfit ceded its title of world’s biggest EV maker to the Chinese company. In a growing industry, that’s irrelevant, plus BYD has a home advantage. The longer-term danger to Tesla, assuming geopolitics doesn't upend its supply chain, is if its peer advances in tech.
Microsoft will finally make its mark in mobile 29 Dec 2023 The software giant has famously tripped itself up in smartphones for years, but boss Satya Nadella is primed to play catchup. His Activision and OpenAI deals pave the way with ‘Candy Crush’, Xbox and ChatGPT. Bruising app wars at Apple and Google may exact a high price, however.
New York Times arrives in new tech with AI lawsuit 28 Dec 2023 The 172-year-old newspaper publisher is suing OpenAI and its backer Microsoft for alleged unauthorized use of its articles to train chatbots. It could help compel tech companies to pay publishers for news content, shifting a modicum of power back to the battered media industry.
Intel becomes proxy for Biden’s America Inc 27 Dec 2023 The chip giant’s $3.2 bln subsidy to build a plant in Israel follows similar outlays from the USA and Germany. The investment loop is a unique boon to shareholders: President Biden wants to build an allied semiconductor supply chain to fend off China; he must use Intel to do so.
EU tech rules will create clicks, not competition 27 Dec 2023 Brussels wants to force Google, Meta and Apple to open up app stores, messaging networks and search engines. The US giants will have to let startups compete and offer consumers more opt-outs. It’s likely to result in lawsuits and hassle for users rather than rivals for Big Tech.
Artificial intelligence will embark on a data dash 22 Dec 2023 Text and photos produced by professionals are key to training and improving AI models. But accessing this information is getting harder and pricier. AI firms will have little choice but to pay for data, pushing up already-high costs – and delivering a windfall to publishers.
China policy risk returns as stock market grinch 22 Dec 2023 Shares in Tencent and NetEase plunged after surprise new curbs from Beijing on video-game spending and rewards. It smacks of President Xi Jinping’s crackdowns on private tutoring, tech and other sectors – and gives overseas investors another reason to be wary jumping back in.
China’s automakers will defy the great uncoupling 22 Dec 2023 There are industries, like microchips, where American trade warriors can cleave friendly supply chains from China. Cars aren’t one of them. Despite $80 bln of announced investments, lagging tech holds US champions back. In 2024, that will prove the limits of protectionism.
Disney’s 2024 lifeline leads to Tim Cook 21 Dec 2023 Boss Bob Iger is seeking a partner for sports network ESPN. Tim Cook’s Apple would be a nice co-owner. The brands are aligned, the executives have a history with movie studio Pixar, and the iPhone maker is getting deeper into sports.
China’s Huawei could be the surprise IPO of 2024 21 Dec 2023 Ren Zhengfei has long insisted the telecoms giant and chip designer he founded will never go public, but the company is now central to Beijing’s technology ambitions, which require heavy funding. A Huawei listing would also breathe life into China’s ailing stock market.
Backlogged M&A pipeline will burst in 2024 19 Dec 2023 Even normally chipper bankers are wary as merger activity heads for a second straight drop from its $5.7 trln peak in 2021. And yet stabilizing capital costs, bulging cash reserves and adjusting valuation mindsets should help spark enough pressure to ignite a deals resurgence.
Farfetch rescue leaves scattered luxury debris 18 Dec 2023 The struggling online merchant secured a bailout from South Korean e-commerce giant Coupang, which is injecting $500 mln. The deal gives Farfetch a fresh shot at existence, but leaves former backer Richemont wiped out, and its new investor with fresh messes to clean.
Bitcoin ETF race is a shiny distraction 15 Dec 2023 The digital token’s price has spiked as a US exchange-traded fund creeps closer to approval, bringing it back into the ranks of the world’s most valuable assets. But as with gold, economic swings, not accessibility or inherent value, will mostly determine its long-term worth.
Cyber-paperwork blizzard will soon blind markets 14 Dec 2023 New SEC rules force companies to divulge a hack within days of deeming it serious. CEOs wary of falling foul are apt to overshare. Such stock-swinging decisions, like ones from Clorox and Johnson Controls, will test investors’ analytical skills as much as corporate tech defenses.
Antitrust legendarily unpredictable despite Epic 12 Dec 2023 A jury ruled against Google in a case brought by the gaming firm while an emboldened FTC blocked Sanofi from snagging a new drug. Yet Pfizer is pushing ahead with a $43 bln deal. Rainmakers can be comforted that regulators’ front offices aren’t a totally impenetrable barrier.
General Atlantic laces IPO shoes with hook nearby 12 Dec 2023 A tech stock recovery coupled with consumer IPO successes bode well for a listing of the growth equity investor. But valuations could recoil as fast as they rose. While General Atlantic knows the value of pouncing quickly, TPG’s path to an IPO shows waiting has merit, too.
AI firms lead quest for intelligent business model 12 Dec 2023 Automating a swathe of tasks could help startups capture $140 bln in revenue. But even sector darling OpenAI is deeply unprofitable. To justify the billions invested by backers like Microsoft and Amazon, artificial intelligence will have to deliver lasting productivity gains.
Capital Calls: UK fund clampdown 12 Dec 2023 Concise views on global finance: Britain’s markets regulator has cancelled Christmas for fund operators like Hargreaves Lansdown and Abrdn.
Capital Calls: OpenAI’s Microsoft dilemma 11 Dec 2023 Concise views on global finance: When boss Sam Altman’s ouster threatened to implode the ChatGPT maker, $2.7 trln backer Microsoft helped restore order. That necessary boon, however, will draw ever-more trustbuster scrutiny about tech giants’ unshakable influence in AI.
EU payments tie-up would build wider M&A defence 11 Dec 2023 Worldline’s market value has shrunk by 60% to $5 bln in a year, making it vulnerable to a takeover by US rivals. Teaming up with Italian peer Nexi is a worthy alternative. While sorting out the ownership structure looks tricky, the reward is greater regional clout and savings.