Technology

Review: Shaking up Singapore’s ivory tower elites

26 Jan 2018

The city-state has fostered prosperity and stability. Yet as the fourth generation of leaders prepares to choose a new prime minister, a timely book from academic Cherian George presents a helpful to-do list. Broadening the political talent pool should be right at the very top.

Uber plan highlights SoftBank’s addiction to debt

25 Jan 2018

The Japanese group might raise funds by borrowing against its shares in the U.S. ride-hailing app, or in British chip designer ARM, a report says. That’s plausible: SoftBank prefers maximum financial firepower. Extra layers of leverage will introduce fresh complexity and risk.

Hadas: Carillion and the danger of low prices

24 Jan 2018

Debt-heavy UK contractor Carillion collapsed because it wasn’t charging enough. Uber can keep distorting taxi markets with loss-making fares until its backers lose hope. And Amazon’s cross-division support unfairly harms competitors. Cheap prices can cause expensive trouble.

Banks have new reasons to fear digital disruption

24 Jan 2018

Wannabe fintech disruptors are out in force at Davos. Regulation and poor returns helped protect big lenders up to now. Renewed interest in financial services from the likes of Amazon and Apple poses a bigger threat. Banks will need to either join forces or partner with Big Tech.

EU makes Qualcomm bid more attractive, less likely

24 Jan 2018

Regulators fined the company $1.2 bln for paying Apple not to buy chips from its rivals. Such levies reduce Qualcomm’s potential profitability, and make a $105 bln bid from rival Broadcom more alluring. Yet it suggests trustbusters may look askance at the combined firm’s power.

Chinese gadget-maker IPO tracks Xiaomi hype

24 Jan 2018

Huami, China's answer to Fitbit, is aiming to go public ahead of a blockbuster share sale by the handset maker. It just turned a profit, thanks to growth powered by cosy ties to Xiaomi. Western hardware companies have disappointed investors, but they also didn't have an X factor.

South Korea’s bitcoin-trading tweak is encouraging

23 Jan 2018

A sensible curb on anonymous accounts will limit criminal activity, but hardliners are still calling for a full ban on exchanges. That could backfire by pushing traders to use riskier venues instead. Japanese-style market regulation would be a better way to protect investors.

Ping An’s Big Health plan risks excess success

23 Jan 2018

A $9 bln unit of the Chinese insurer that analyses patient data has lured backers like SoftBank, Reuters reports. The digital upgrade of China’s clunky medical system is a lucrative opportunity for private firms. Data security is a risk; getting too big, too quickly may be worse.

Trump’s solar tariffs add new wrong to old

22 Jan 2018

The levies should ease pressure on surviving panel makers, who account for about 15 pct of the U.S. solar industry’s 260,000 jobs. But pricier imports will set back installers that dominate the sector. It’s an illustration of how difficult righting past trade unfairness can be.

Crypto-FOMO is a shaky market foundation

22 Jan 2018

Hackers have purloined a tenth of the $4 bln raised through initial coin offerings, according to EY. The consultancy says fear of missing out makes investors overlook projects’ flimsy underpinnings. The same could be said of the hype surrounding digital currencies and blockchain.

Netflix cash-flow hole is becoming a moat

22 Jan 2018

Reed Hastings’ video-streaming service is losing cash, but piling on viewers. The $95 bln firm has more subscribers than established rivals like Hulu and Amazon. A hefty content budget is a risk for Netflix, but ensures only the most deep-pocketed media firms can challenge it.

Icahn risks printer error on Xerox fight

22 Jan 2018

The activist wants to put the $8 bln copier company on the block. That makes sense, but torpedoing the CEO and directors during a sale does not. Icahn is also teaming up with pseudo-insider and fellow disgruntled shareholder Darwin Deason. That adds heft, but also controversy.

Qualcomm slipping away from Broadcom’s grasp

19 Jan 2018

The odds were always long on the chipmaker’s $105 bln unsolicited bid. A new federal probe into Broadcom, Qualcomm’s progress with approvals to buy NXP and souring U.S.-China relations raise them further. Broadcom holds a few cards but its hand would be stronger played elsewhere.

China’s battery champion will charge overseas

19 Jan 2018

A $2 billion IPO would give CATL a richer valuation than rivals such as Samsung SDI. To justify that price, the battery maker must thrive at home and abroad. Cracking global supply chains is hard. But where other Chinese giants have stumbled overseas, CATL might just succeed.

Amazon HQ2 choices disappointingly undisruptive

18 Jan 2018

The e-commerce giant has cut the field for its second headquarters to 20 prime locations including Dallas, Atlanta and New York. Hundreds of cities hoped Amazon would think outside the box, but a desire for talent and a welcoming environment led it to the usual hot spots.

Bitcoin’s siren song could send TSMC off course

18 Jan 2018

Surging demand for processors used in mining digital tokens boosted results at the world's top contract chipmaker. That helps make TSMC less dependent on smartphones. When the $210 bln giant plans future investment, though, placing big bets on crypto-currency would be foolish.

Indonesian ride-hailing unicorn races to relevance

18 Jan 2018

Go-Jek is bringing in new backers including Alphabet and Temasek, sources say, as it expands its platform model across Southeast Asia. To ward off local rivals and be a serious contender in a cutthroat business, the now $4 bln startup has to grow quickly. Deep pockets help.

Tim Cook goes as American as Apple’s pie

17 Jan 2018

The iPhone maker will pay $38 bln in tax on its huge pile of overseas cash. It’s also pulling an Amazon with plans to open a new U.S. campus, invest $30 bln and create 20,000 jobs. The Apple boss has cleverly engineered some common ground with Donald Trump.

Ford stock’s staying power makes no sense

17 Jan 2018

The Motown automaker expects costs and currencies to impede its earnings recovery. It also trails GM on autonomous cars and is having to double its electric-vehicle investments. Yet Ford trades at a higher multiple than its Michigan rival. GM's prospects look brighter.

Uber’s next ride-share could be in Southeast Asia

17 Jan 2018

After struggling in China and Russia, the app operator swapped its businesses there for stakes in Didi and Yandex. Another sensible partner would be $6 bln-plus Grab, which shares a backer in SoftBank. As Uber aims for an IPO, it's a good region in which to cut further losses.