Four headwinds that push back the selling of ‘Bidenomics’
Washington Post
23-08-07 16:12
President Biden is facing challenges in selling his economic and climate agenda to voters. A CNN poll found that half of Americans believe the economy is in a downturn or getting worse, and only one in five see the economy as improving. Additionally, just over one-third of respondents approve of Biden’s handling of the economy, while nearly two-thirds disapprove. The White House has publicly dismissed much of the polling. Other factors that make it difficult for Biden to convince voters include media coverage of the whirlwind of legal drama surrounding former President Donald Trump, rising gas prices, and inflation. There is also a trust problem with Biden, as his trustworthiness rating has consistently slipped over the last two years. Trump’s trust numbers have been worse, but a May poll found that 54 percent of respondents said Trump did a better job with the economy while in office, compared with 36 percent who said Biden did.
Samsung, Caltech settle US patent fight over wireless chips
Reuters
23-08-08 21:00
Samsung and the California Institute of Technology (Caltech) have reached a settlement in Caltech's patent lawsuit against the South Korean conglomerate. The lawsuit accused Samsung of violating Caltech's patent rights in Wi-Fi technology. The terms of the settlement were not disclosed. The trial in the case had been scheduled to begin next month. Caltech had previously won a $1.1 billion jury verdict against Apple and Broadcom in a similar lawsuit, but the award was thrown out by a US appeals court. Caltech has also sued Microsoft, Dell, and HP over the same patents in separate cases that are still pending.
Lawsuit claiming HP all-in-one printers are defective can proceed
Reuters
23-08-11 14:30
A federal judge in California has rejected HP's bid to dismiss a lawsuit claiming that the company intentionally designed its all-in-one printers to be unable to scan or fax when they are low on ink in order to boost ink sales. Customers in the proposed class action argue that HP concealed how its printers enter an "error state" when low on ink, disabling scanning and faxing functions that do not require ink, and forcing them to buy unnecessary, high-margin ink cartridges. The judge found sufficient evidence that HP knew about the defect and said customers could try to show that the company had a duty to disclose the defect.
Lenovo profit misses as global PC downturn deepens
South China Morning Post
23-08-17 06:10
Lenovo's profit for Q2 fell 66% to $176.5m and revenue dropped to $12.9bn, missing analysts' expectations. The Chinese company's main business unit was hit by an 18.4% drop in sales and a fall in demand due to a slump in the Chinese economy. Lenovo's results were also impacted by the clearing of inventory. The company said it was banking on a demand surge for AI servers to drive growth.
Lenovo pins hope on 'AI-PC' as catalyst after another poor quarter
Nikkei Asia
23-08-17 13:33
Lenovo's core PC business remains in decline, with revenue for the April-June quarter dropping 24% year-on-year to $12.89bn. The company's intelligent device group business segment, which includes PCs, tablets and smartphones, saw revenue dip 28% to $10.26bn. Despite this, Lenovo CEO Yang Yuanqing said he was "cautiously optimistic" for the remainder of the fiscal year and said the company was pinning its hopes on a new artificial intelligence-powered device to spur growth.
Rare classic Jaguar bought for just £1 to sell for over £1m
Telegraph
23-08-23 20:10
A classic Jaguar E-Type barn find is set to sell for over £1m after being restored to its former glory. The 1961 E-Type Series 3.8-Litre Fixed Head Coupe is one of only four “outside bonnet lock” right-hand-drive production Jaguar E-Types ever built, with the other three no longer in existence. The car was bought for £1 in 2000 and underwent a two-year restoration costing between £100,000 and £120,000. It will be sold alongside a 1961 Jaguar E-Type Series 3.8-litre Roadster, the first E-Type sold, which has a guide price of between £900,000 and £1.2m.
Tech suppliers in China skip seasonal hiring rush amid weak demand
Nikkei Asia
23-08-24 21:00
China's tech manufacturing industry is experiencing an unusual lull in hiring temporary workers for the peak production season. The hiring slump is due to weak demand in the electronics market and a shift in supply chains away from China. Normally, hundreds of thousands of temporary workers would be recruited by major tech manufacturers to meet the rush of orders from Apple, Amazon, HP, Dell and others ahead of the year-end holiday shopping season. However, this year, recruitment has been easier and wages have remained low. Some smaller tech manufacturers are offering less than CNY20 ($2.75) per hour in Dongguan and Suzhou, two major tech manufacturing hubs in the country. An executive at an Apple supplier said that the company has not spent any extra money on recruitment agencies this year, whereas in previous years they would spend an additional CNY450m on agencies. The shift away from China is due to geopolitical risks, and companies such as Apple, Google, Microsoft and Amazon are all asking suppliers to build additional capacity in Southeast Asia and India.
Global warming link to intense rains in India's Himalayas - scientists
Reuters
23-08-25 11:30
Torrential rains in India's Himalayas are becoming more intense due to a clash of weather systems caused by global warming, according to scientists. The convergence of the monsoon with a low-pressure weather system in the Himalayas has resulted in heavy downpours, landslides, and flash floods. The number of very heavy to extremely heavy rainfall days per decade in India's Himalayan states has increased from 74 between 2001 and 2010 to 118 between 2011 and 2020. This year alone, at least 240 people have died in the region due to heavy rains and flooding. Scientists say that instead of moderate rains spread throughout the monsoon season, there are now long dry periods interrupted by short spells of heavy rain.
HP dials back profit expectations on PC market slump, China weakness
Reuters
23-08-29 20:56
HP Inc. has lowered its profit expectations for the year due to the ongoing slump in the personal computers market and weak demand in China. The decline in demand for consumer electronics, including PCs, last year, coupled with an uncertain global economy, has impacted the company's performance. PC shipments to China have dropped 19% in recent months, and HP does not expect a recovery in the near future. HP now forecasts adjusted earnings per share to be in the range of $3.23 to $3.35, down from its previous forecast of $3.30 to $3.50. However, the PC maker's focus on cost control has helped it report adjusted earnings per share of 86 cents.
HPE forecasts fourth-quarter revenue below estimates, shares fall
Reuters
23-08-29 22:11
Hewlett Packard Enterprise (HPE) has forecasted lower-than-expected fourth-quarter revenue due to a slowdown in enterprise spending and increased competition from AI-focused rivals. The company expects Q4 revenue between $7.2bn and $7.5bn, below analysts' expectations of $7.49bn. HPE has invested heavily in its offerings for AI workloads, which has helped to retain clients and attract new ones as companies seek to scale up their data centres for AI-backed services. However, the company's shares fell 2.3% after the announcement.
Tech stocks drive Wall Street higher; ASX set to dip
The Sydney Morning Herald
23-08-30 19:21
US stocks rose modestly on Wednesday as economic updates showed that the job market is cooling but growth remains strong. The S&P 500 rose 0.4%, continuing a three-day gain. The Dow Jones was up 0.2% and the Nasdaq composite rose 0.6%. The focus on Wall Street this week is on a mix of data that will provide a clearer picture of the economy and whether the Federal Reserve will hold off on further interest rate hikes.
India has announced that suppliers of personal computers and similar devices will need to obtain licenses to import those products into the country starting in November. The new rules have prompted the US to seek more clarity ahead of their adoption. US Trade Representative Katherine Tai raised American concerns about the controls during a recent meeting with her Indian counterpart. India's manufacturing sector is less developed, and the country imports most of its electronic devices. The licensing requirements could hurt the shopping season later in the year.
India is struggling to attract foreign capital, despite being seen as a potential alternative to China for global manufacturers. Inbound foreign direct investment (FDI) fell 16.3% to $71bn in the fiscal year ending March 2021, while net FDI declined by 27% to $28bn, largely due to increased repatriation of profits. Vietnam has been the biggest beneficiary of investment from companies looking for an alternative to China. India has tightened screening of inbound Chinese investments, creating additional hurdles for foreign companies looking to set up in the country.
Book Review: Novelist and blogger Cory Doctorow pens a manual for destroying Big Tech
Associated Press
23-09-12 13:48
Novelist and public-interest technologist Cory Doctorow has published a new book, The Internet Con: How To Seize The Means of Computation, in which he argues that big tech companies such as Facebook, Google and Apple have stifled innovation and choice. Doctorow insists that it is impossible to fix big tech and that it must be destroyed. He highlights laws such as the Digital Millennium Copyright Act, which has enabled large corporations to maintain monopolies, and argues for the reinstatement of interoperability as mandated by the European Union’s Digital Markets Act.
Berkshire sells some HP shares after taking big stake last year
Reuters
23-09-14 00:46
Warren Buffett's Berkshire Hathaway has sold approximately 5.5 million shares of HP, reducing its stake in the company by 0.5%. The reason for the sale is currently unknown. HP's share price has fallen 19% since Berkshire revealed its $4.2bn stake in the company in April.
Futures climb on Fed pause hopes; investors await Arm debut
Reuters
23-09-14 10:13
Optimism about a pause in interest rate hikes in September has lifted US index futures. Both the Nasdaq and the S&P 500 gained on Wednesday following data that showed the smallest annual rise in core consumer prices in nearly two years. Rising oil prices, however, could keep inflation at elevated levels.
CEOs from Alphabet, Walmart, Pfizer meet White House officials on refugees
Reuters
23-09-14 10:10
Chief executives from various U.S. companies will meet with White House Chief of Staff Jeff Zients to discuss refugee resettlement and sponsorship programs. The CEOs are part of a council affiliated with Welcome.US, a group dedicated to supporting refugees in the United States. The meeting will focus on finding ways to support safe pathways for refugees to come to the United States, including through refugee resettlement and expanded humanitarian sponsorship programs. The CEOs in attendance will include leaders from Alphabet, Walmart, Pfizer, HP, Gap, Accenture, Lyft, Chobani, and T-Mobile, among others. The meeting comes as President Biden faces criticism from Republicans over his immigration policies, and as the issue is expected to play a prominent role in the 2024 presidential campaign. The White House has previously partnered with Welcome.US to assist Afghan refugees following the U.S. troop withdrawal from Afghanistan.
US stocks rose on Thursday following reports that the US economy is still performing well, although inflation may be too high. The S&P 500 was up 0.9%, the Dow Jones rose 1.1% and the Nasdaq composite increased 1%. The strong spending by US shoppers is due to the resilient job market, which has successfully withstood rising interest rates in the past year. This spending has been a key driver of the economy, however, it could encourage retailers to raise prices further. The Federal Reserve has been increasing interest rates in an attempt to bring inflation back down to its 2% target.
Bank chiefs relish prospect of AI boost to productivity
Financial Times
23-09-18 04:00
While the predictions that robots would replace a significant portion of banking jobs have not come true, banks are still optimistic about the potential impact of AI. Deutsche Bank and HSBC believe that AI can drive efficiency, improve customer engagement, and fulfill regulatory obligations. Accenture's Mike Abbott says that banks are still in the early stages of their AI journeys, but the use of AI is already making an impact in risk, compliance, and enterprise functions. AI is also being used as a customer acquisition tool and for analyzing regulatory changes.
China relaxes capital controls to entice badly needed foreign investment
CNN
23-09-22 06:58
China is relaxing its strict capital controls in an effort to attract overseas investors. Chinese authorities have announced that foreigners in Shanghai and Beijing will be allowed to freely move their money into and out of the country. The move comes after data showed that foreign direct investment in China had hit a record quarterly low due to a slump in business confidence. The new rules, which do not apply to mainland Chinese nationals, took effect on September 1 and are aimed at attracting foreign investment to build an open economy.
