China’s automakers try turning Japanese 20 Mar 2024 Efforts to block Chinese auto exports are inspiring BYD and rivals to set up factories overseas. Their journey is reminiscent of Toyota and Nissan’s drive into the US and Europe. But Washington and Beijing’s fraught ties and new tech portend a different ending to this road trip.
Crypto’s roaring comeback may be harder to undo 19 Mar 2024 Bitcoin’s price broke its record, nearly two years after crypto exchange FTX went bust. In this Exchange podcast, Andreessen Horowitz’s Arianna Simpson explains why digital assets and the ledgers underpinning them are inextricable, and what’s driving new excitement around both.
Alphabet and Apple have cause to circle AI wagons 18 Mar 2024 The $2.7 trln iPhone-maker is in talks to license Alphabet’s artificial intelligence models, according to Bloomberg. Apple has underinvested, but Google search’s pride of place on its devices is also at risk. A deal would help both defend their turf, if regulators don’t kill it.
Singtel can dial up long distance call 18 Mar 2024 The Temasek-controlled firm denies it is selling Australia's Optus to Brookfield for up to $12 billion, twice what some analysts reckon the business is worth. If done right, a deal Down Under could help CEO Yuen Kuan Moon narrow the extreme discount Singtel suffers.
ByteDance’s TikTok woes are never-ending sideshow 14 Mar 2024 US lawmakers edged closer to banning the short-video app. Co-founder and CEO Liang Rubo has grappled with the epic four-year-long fight while rejigging the business at home to focus on e-commerce. ByteDance remains in IPO limbo but its fortunes have not fallen too far.
AI makes venture capital Big Tech’s country cousin 13 Mar 2024 Early-stage investors have long competed to back the hottest startups. Now artificial intelligence startups seeking capital and computing power are going directly to deep-pocketed giants like Microsoft and Amazon, leaving venture capital firms scrabbling for crumbs in the boom.
Apple’s Epic fail powers up EU tech oversight cred 11 Mar 2024 The $2.6 trln firm quickly reversed its decision to close ‘Fortnite’ maker Epic Games’ developer account. Frowns from the EU, which is going after Big Tech via fresh laws, look to have played a role. The episode is as much a victory for the bloc’s credibility as it is for Epic.
Microsoft is case study in weathering EU techlash 7 Mar 2024 The $3 trln group has taken a stake in French startup Mistral AI and kept its browser, search engine and ad sales platform clear of the European Union’s new Digital Markets Act. Things could change. But so far Microsoft shows how US firms can work around the Brussels backlash.
China’s new tastes will spit out more than Apple 6 Mar 2024 The iPhone maker is losing share in the People’s Republic to domestic champion Huawei. American companies in the giant market face both weakening demand and a move to homegrown brands. Chinese consumers’ shifting attitudes suggest the woes will worsen.
Say hello again to the chief operating officer 4 Mar 2024 The role lost its mojo as growth, revenue and marketing execs muscled into C-suites. Roughly one in three big companies has a COO, down from nearly half in 2000. With money no longer cheap and profitability back in vogue, there’s a fresh case for hiring a solid second-in-command.
EU’s $2 bln Apple bite is still more of a bark 4 Mar 2024 Brussels is fining the US giant more than expected for hurting streaming competition. That leaves $2.7 trln Apple open to similar cases. But as with other EU bids to rein in Big Tech, it hikes the cost of doing business more than it shakes up the sector.
European telcos’ new deal hopes face reality check 1 Mar 2024 Executives gathered in Barcelona this week to plead for lighter regulation, cheaper spectrum and some financial help. Policymakers are unlikely to agree. Deutsche Telekom, Telefónica and others will have to convince investors that future growth requires more investment today.
Baidu may be the world’s most unloved AI stock 29 Feb 2024 China's $36 bln search-engine operator lags leaders like Microsoft but is making progress on its answer to ChatGPT. Yet the stock plunged 8% despite decent results and it now trades below 10 times forward earnings. Blame a rout in Chinese equities and overly high expectations.
Klarna IPO now makes less sense than one later 28 Feb 2024 Decent growth and lower losses mean the Swedish buy now, pay later group can justify a $20 bln valuation. Given that’s three times the level of its last cash injection, there’s an argument for a speedy listing. Still, Klarna’s messy governance suggests a 2025 IPO is more logical.
Geely’s $7 bln Lotus deal breaks speed limit 28 Feb 2024 The Chinese automaker has listed the storied brand in the US via a SPAC at a racy valuation. That's hard to justify with electric-car sales growth slowing. A plan to take advantage of lower-cost manufacturing in Wuhan has also aged poorly as concerns mount over Chinese exports.
Capital Calls: Charter and Altice 27 Feb 2024 Concise views on global finance: Tying up Charter, the cable giant backed by the media mogul, with rival Altice USA would form the country’s largest broadband player. That isn’t worth bearing the burden of regulatory hurdles, Altice’s mountain of debt, or its over-rich valuation.
Reddit loves users, so it’s giving itself a deal 26 Feb 2024 The social media firm plans to reserve IPO shares for loyal visitors, a tactic enlisted by the maker of Sam Adams beer and trading firm Robinhood. So-called “affinity programs” are risky, as Robinhood’s 2021 offering shows. But it may help Reddit get the valuation it wants.
Europe shares’ granola rush will become thin gruel 26 Feb 2024 The STOXX 600 Index has hit a record, but local funds are seeing outflows. As in the US a small bunch of companies – the so-called GRANOLAS group – are behind the good news. But in the Old Continent they’re more dependent on weak economic growth rather than the AI revolution.
Warner Bros Discovery makes case against media M&A 23 Feb 2024 The HBO owner’s first full year since the merger of Warner and Discovery was a grim one. Boss David Zaslav lived up to cost-cut goals but missed nearly everywhere else. Even well-run deals can’t stem industry woes, making future tie-ups - with, say, Paramount - look ill-advised.
Nvidia’s AI stronghold supports $3 trln valuation 21 Feb 2024 The chipmaker’s latest results support the frenzy that tripled its stock price in a year. Unlike other dubious beneficiaries of artificial intelligence hype, the $1.7 trln company’s grip on the market will be hard to wrest. It could soon be worth nearly twice as much again.