Technology

Daimler’s European answer to Uber gains momentum

26 Jul 2016

The German carmaker is merging its ride-hailing app Mytaxi with UK-based rival Hailo. The all-share deal creates Europe’s strongest competitor to Uber while avoiding paying the sector’s frothy multiples. For now, Daimler’s digital first-mover advantage is paying off.

Elon Musk’s new plan will test investor faithful

20 Jul 2016

The Tesla boss has a compelling vision for building more vehicles with more autonomy for a sharing economy. But Musk's missive fails to address shareholder concerns about the electric carmaker's planned merger with SolarCity. It's also unclear how he will finance his ambitions.

UK grocers pedal themselves down bumpy path

20 Jul 2016

Sainsbury's is trialling a one-hour bike-delivery service in London. A third of Britons have access to Amazon Prime Now, putting pressure on grocers to match it on speed. But with retailers struggling to make money online, being sucked into a delivery war won't help profit.

ASML could be cousin to ARM in next tech wave

20 Jul 2016

Like the UK chip-designer Japan's SoftBank has agreed to buy, ASML is a niche but dominant player. Its tools make chips smaller and punchier. ASML would be harder to take over than ARM, but if big data and the internet of things merit the hype, it's in a good position to cash in.

Pokemon tempts market into playing familiar games

20 Jul 2016

Nintendo shares have soared thanks to augmented-reality hit Pokemon GO. So have firms offering Pokemon bread, burgers, cartoons, and arcades. With Nintendo stock now retreating, this looks like a classic case of markets overshooting as investors pile into a good story.

Activist faces long odds to stop Baidu video deal

20 Jul 2016

Acacia Partners objects to a bid from Baidu's CEO for the group's video unit. The U.S. fund is right to highlight potential conflicts of interest. But it is hard to see an activist victory here, given the boss's influence. Same goes for China's other internet giants.

EMC owners shift concerns from Dell to VMware

19 Jul 2016

The storage maker's shareholders overwhelmingly backed a sale to the PC producer, cementing a deal once valued at $67 bln. Now they have to get comfortable with the untested VMware tracking stock they'll receive. For now, the implied discount of nearly 50 pct makes sense.

SoftBank’s Son tests limits of investor patience

19 Jul 2016

SoftBank shares tanked after its no-synergy, $32 bln bet on UK chip designer ARM. Having just lost his heir apparent, founder Son talks about the company as if it is private and says the highly leveraged entity is "net debt zero". It takes the shine off his striking track record.

Corporate GOP convention snub boosts Trump appeal

18 Jul 2016

The dearth of company sponsors at the Republican bash reflects unease with the White House hopeful's stance on issues like trade. Businesses usually provide support for the nomination party. Ironically, their absence may serve to enhance the real-estate mogul's outsider image.

ARM bids best left to the irrational or desperate

18 Jul 2016

Japan's SoftBank's $32 bln offer for the UK chip designer is a monster bet on the "internet of things". It would only make financial sense if the bidder quintupled ARM's operating profit. That sets a high bar for rivals like Intel, who in any case could face anti-trust hurdles.

Britain can’t have its chips and eat them too

18 Jul 2016

A takeover of microchip-designer ARM Holdings by Japan's SoftBank shows Britain is open for business. There is little choice. The UK may need dozens of new trade deals on leaving the European Union. However rare ARM's charms, and whoever the buyer, protectionism isn't an option.

SoftBank’s $32 bln ARM bet gives investors a shock

18 Jul 2016

The Japanese tech group has reportedly agreed to buy the UK chip designer. It's a pricey punt on connected devices, and an unwelcome surprise for those who thought SoftBank was focused on reducing debt. Shareholders remain at the mercy of Chairman Masayoshi Son's "crazy ideas".

Tencent’s Chinese Spotify tribute misses key note

15 Jul 2016

The web giant is merging its music-streaming service with a local rival to create a market leader worth $6 bln. It's part of a costly and aggressive push into online content. But unlike its Western role model, Tencent lacks paying listeners. Profits look out of tune for now.

Samsung charges up electric car dream with BYD

15 Jul 2016

The smartphone-to-chips giant will buy a stake in Tesla's Chinese rival. Having a local ally may smooth ties with Beijing after regulatory setbacks in the People's Republic – and ensure the cash-rich South Korean group gets a slice of China's turbo-charged electric car market.

Nintendo’s augmented shares reflect new reality

14 Jul 2016

The runaway success of the Japanese group's Pokemon app has sent its shares up more than 50 pct. That's a big vote of confidence in Nintendo's future mobile games, too. To justify the move, EBITDA will need to top 250 bln yen by 2018-2019 - more than double previous forecasts.

Fintech: bigger and dicier for insurers than banks

13 Jul 2016

Financial technology is highly likely to disrupt the insurance industry, executives told PwC. Preventive cover that use sensors to anticipate damage could benefit society. But many shifts may require intrusive Big Brother-like methods - or questionable changes to risk management.

Nintendo’s big Pokemon boost depends on Asia

11 Jul 2016

Investors have added $7.5 bln to the Japanese company's market value after its Pokemon GO mobile game proved a smash hit in the United States. Conquering Japan is the next challenge. It all bodes well for transferring Nintendo characters like Super Mario onto mobile devices.

Theranos hobbles toward gluenicorn fate

8 Jul 2016

The blood-test upstart's value was already racing from $9 bln to zero. Now a U.S. watchdog is set to ban Elizabeth Holmes' company from the industry for two years. Theranos' aims were appealing, but reinventing technology, regulation and governance in one go is hard.

Temasek’s goals are bold for a low-yield world

8 Jul 2016

The $180 bln Singaporean investor just suffered its first down year since the financial crisis. Still, it beat benchmarks, and some key holdings have since rebounded. However, Temasek is still targeting a feisty 8 pct annual return. That could skew future investment decisions.

Japan’s chat app IPO is more Twitter than WeChat

1 Jul 2016

Messaging platform Line is going public with a valuation of up to $6.6 bln. Like Chinese rival WeChat, it has lured millions with games and virtual stickers. Yet its user base has stopped growing. Like Twitter, it must now try to squeeze more revenue out of those people.