Technology

AI is the big driver of SoftBank’s Uber move

15 Sep 2017

A mooted $10 bln investment in Uber would leave Masayoshi Son’s group with stakes in most of the world’s big ride-hailing firms. It’s a huge sum, even if SoftBank buys in at a big discount. The strategy reflects Son’s belief in the disruptive power of autonomous driving.

Trump follows Obama’s lead on Chinese chip deals

14 Sep 2017

The U.S. president blocked a $1.3 bln takeover of Lattice Semiconductor. It’s not a new position: his predecessor was sensitive to Beijing’s ambitions and nixed a similar acquisition. With scrutiny likely to intensify, buyers and sellers can save face by rethinking these mergers.

Ericsson reaches for India’s new creditor weaponry

14 Sep 2017

The Swedish telecoms equipment maker has filed a bankruptcy petition against Anil Ambani's Reliance Communications. It is the first high-profile foreign outfit to use a new insolvency code to try to force a settlement. This shows creditors are becoming more powerful in India.

Hong Kong is better off without dual-class shares

14 Sep 2017

Hong Kong’s securities watchdog has conceded in a battle for control over listing approvals, says the SCMP. Regulators can still reject proposals for unequal voting rights, which might lure tech IPOs at the expense of governance. But they'll need to get used to being unpopular.

New iPhones take features from Asia and add profit

13 Sep 2017

Apple's latest handset boasts a big screen, wireless charging, facial recognition and other upgrades. Much would be familiar to users of Samsung or Huawei phones. Apple's branding wizardry, price discipline and focus on richer customers set it apart when it comes to profit.

Apple’s iPhone pricing goes out on a tech limb

12 Sep 2017

The X features a new screen, wireless charging and facial recognition. It'll start at $999, the most expensive iPhone ever. That defies convention in an industry where products typically get cheaper. Design, performance and customer inertia, however, give Apple uncommon power.

Equifax boss in danger of getting Stumpfed

12 Sep 2017

The U.S. credit-scoring agency has now lost a fifth of its market value since revealing a massive hack. A bumbling response leaves CEO Rick Smith on the back foot as lawmakers and consumers demand answers. Under similar circumstances, Wells Fargo's John Stumpf paid with his job.

SoFi is the Uber of finance in more ways than one

12 Sep 2017

The founder of the private online lender is resigning amid a harassment lawsuit and claims he fomented an inappropriate work vibe. As with Uber, the danger is that Mike Cagney, who will remain CEO until a replacement is found, will still cast too long a shadow on his creation.

Holding: GrubHub serves up a gig-employment pickle

11 Sep 2017

If the $5 bln food-takeout service wins a rare trial over the job status of workers, discontent could grow in a labor force demanding more benefits. A loss, though, may put the so-called sharing economy at risk. It’s time for a sector that shuns regulation to work with Uncle Sam.

Apple distance from startup tree ensures X success

11 Sep 2017

The $835 bln giant is set to unveil its 10th anniversary iPhone from its new $5 bln circular campus. The device may boast more speed, face recognition, and a better screen. Apple’s massive scale makes Silicon Valley-style nimbleness impossible - but global bestsellers possible.

Elliott takes activist-buyout firm fight to Japan

11 Sep 2017

The two Wall Street tribes are increasingly at odds. Now Elliott has bought into a $3 bln Hitachi unit that KKR covets, presumably seeking a better price. For private equity groups, mining Japan’s promising seam of corporate carve-outs may be about to get a little bit harder.

Amazon’s second HQ could be its easiest sale yet

7 Sep 2017

The e-commerce giant wants another headquarters besides Seattle, and it’s asking cities to bid for the privilege. With a lure of 50,000 jobs and $5 bln of construction spending, it’s sure to get juicy offers. But as Wisconsin found with Foxconn, victory may come at a steep price.

Deutsche Bank CEO tells truth to robotic employees

7 Sep 2017

John Cryan wants the German bank to embrace a “revolutionary spirit” as people lose their jobs to artificial-intelligence technology. His comments reflect the competitive reality – but Deutsche’s whopping 86 pct cost-to-revenue ratio makes its staff among the most vulnerable.

Best IPO looks to repackage Chinese logistics

7 Sep 2017

The Alibaba-backed group wants to list at a market value of $5 billion-plus. Best is growing fast and pushing into new businesses, but its core delivery operation still faces rising costs and fierce competition. A big premium to U.S.-listed rival ZTO is hard to justify.

Facebook’s fuzzy math blurs its TV picture

6 Sep 2017

A claim to reach 100 mln younger people in America doesn't square with U.S. census figures, an analyst found. Despite a growing list of number blunders, advertisers have limited sway over the $500 bln titan. As Facebook pushes into streaming, though, it'll find tougher pushback.

EU’s antitrust creativity drive hits roadblock

6 Sep 2017

A case that slapped chipmaker Intel with a $1.3 bln fine has been punted back to a lower court. This is a blow for antitrust tsar Margrethe Vestager, who has tried to get as innovative in policing tech giants as the companies are themselves. Proving abuses will be harder.

China sets limits on fintech disruption

6 Sep 2017

A ban on crypto-currency initial coin offerings follows a similar U.S. crackdown. Like the SEC, Chinese regulators are trying to protect consumers and head off systemic risks. Keeping state control of a financial sector being eyed by Alibaba and others may be equally important.

Rebooted UK-French software merger rewards patience

5 Sep 2017

After two botched attempts in as many years, French industrial group Schneider and UK software maker Aveva are trying to hook up again. The $3.9 bln deal is as complex as it is financially alluring. With past glitches ironed out, the merger has a good chance of becoming reality.

Soft tech dominance brings on hard fight

31 Aug 2017

The exit of internet-monopoly researchers from a Google-funded think tank signals a larger battle. Tech firms have reaped fortunes controlling search, data and advertising. The companies and regulators are slowly taking the concentration of influence more seriously.

German car industry may become Merkel’s nemesis

30 Aug 2017

Re-election in September will lumber Chancellor Angela Merkel with the challenge of managing a crisis that is looming in the auto sector. The fight for clean air in cities could accelerate the shift to electric vehicles and jeopardise up to a tenth of Germany’s industrial jobs.