Jumat, 05 Juli 2019

UK regulator forces Amazon to put its Deliveroo plans on ice - Engadget

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Amazon must put the brakes on its potential tie-up with food delivery company Deliveroo, a UK competition regulator has ruled.

The UK watchdog, the Competition and Markets Authority (CMA), raised concerns this week that Amazon and Deliveroo had "ceased to be distinct" or that they could merge in the future. This would reduce customer choice in the market, which gives the CMA grounds to intervene in the business relationship. It issued an initial enforcement order limiting what changes can be made to the business and its relationship with Amazon.

Amazon was forced to close its own restaurant delivery service in the UK last year when it couldn't keep up with local counterpart Deliveroo. But never one to be outdone, Amazon decided this year to invest $575m in Deliveroo and became the company's largest backer.

For now, Deliveroo can continue delivering food in the UK, but it must operate as distinct company with its own sales and branding and not be subsumed under the Amazon brand. The ruling also forbids any "substantive changes" to the organizational structure of the business while the CMA decides if it should launch a full investigation.

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https://www.engadget.com/2019/07/05/amazon-deliveroo-competition-regulator/

2019-07-05 10:20:45Z
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German factory orders sink on drop in foreign demand - Financial Times

A key gauge of the health of Germany’s manufacturing industry sank by far more than expected in May, amid a steep drop-off in foreign demand that is hitting factories across the eurozone and raising expectations that the European Central Bank will revive its crisis-era stimulus.

Manufacturing orders in Germany dropped 2.2 per cent month-on-month in May, and were down 8.6 per cent from the same month in 2018. A Reuters poll of economists had forecast a fall of 0.1 per cent.

The publication of the data sparked a fresh fall in government borrowing costs as markets priced in the likelihood of more monetary easing from the ECB. Germany’s 10-year Bund yield traded near historic lows of minus 0.4 per cent on Friday, after the release of the data.

The global trade slowdown has dealt a severe blow to manufacturers in the single currency area, with Germany’s €1.6tn export machine being hit particularly hard. A poll of purchasing managers published this week suggested that levels of activity had continued to shrink in June.

“Today’s figures do not bode well for the short-term prospects for the German economy,” said Ralph Solveen, an economist at Commerzbank, who added that the report underlines “our expectation that the German economy shrank in the second quarter and that hopes of a noticeable improvement in the third are dwindling”.

The scale and duration of the problems have raised fears among policymakers that the woes of the region’s factories will begin to infect other parts of the economy, including the dominant services sector that is more reliant on domestic demand.

The wider economy has held up well in the face of the manufacturing slowdown; unemployment in Europe’s largest economy is close to post-reunification lows. But there are signs the German labour market is weakening, although the evidence is inconclusive.

Any increase in unemployment is likely to weigh on consumer spending.

Departing ECB president Mario Draghi is widely expected to launch fresh policy stimulus, including interest rate cuts and further bond purchases, during his final months in office. The bank’s governing council next meets on July 25.

“German factory orders have brought us closer to ECB action at the July meeting,” said Carsten Brzeski, economist at ING. “If industrial data next week are equally dreadful, it is hard to see the ECB not acting. Mr Draghi increased expectations so strongly that no reaction to another set of disappointing data would be counter-effective.”

In a sign of how far investors’ expectations of central bank action have shifted, the market value of negative-yielding debt globally this week reached a record high of $13tn, according to data from Barclays.

The figure represents a dramatic increase from $8.3tn at the end of last year. The negative yield means that investors who purchase the Bunds and hold them to maturity will receive less in repayment and regular coupon payments than their initial investment.

Germany’s factory sector has been among the hardest hit by the sharp slowdown in global trade stoked by the US-China trade war. Sluggish growth across some of its major trading partners, such as Turkey, has also weighed on what was until recently the eurozone’s economic powerhouse.

Foreign orders at German manufacturers slumped 4.3 per cent in May, on a month-over-month basis, according to surveys of purchasing managers. Orders from the eurozone were off 1.7 per cent, and those outside the bloc tumbled 5.7 per cent. Domestic orders rose 0.7 per cent. 

“Manufacturers have, at least according to the PMIs, been able to maintain production growth in excess of the flow of new orders recently by clearing work backlogs,” said Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics. “But that can’t go on indefinitely.”

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https://www.ft.com/content/7256af74-9eed-11e9-9c06-a4640c9feebb

2019-07-05 08:03:00Z
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Dow futures lower as markets await key jobs data - CNBC

U.S. stock index futures pointed to a slightly mixed open on Friday as investors focused on the release of key jobs data.

At 03:33 a.m. ET, Dow futures were down 11 points, implying a muted open. Futures on S&P 500 and Nasdaq traded in opposite directions.

Market focus is largely attuned to nonfarm payrolls and unemployment data, expected at 08:30 a.m. ET on Friday. Nonfarm payrolls are predicted to have risen by 160,000 in June, compared to 75,000 in May, according to a Reuters poll.

A weaker-than-expected figure could increase bets that the Federal Reserve will cut interest rates at its meeting on July 30 and 31. The central bank opened the door to easier monetary policy last month by stating it will "act as appropriate" to maintain the current economic expansion.

Meanwhile, geopolitical tensions in the Middle East continue to dominate after the British Royal Marines seized a large Iranian oil tanker Thursday for trying to take oil to Syria in violation of EU sanctions, evoking fury in Tehran.

Oil prices were mixed in morning trade, with the international benchmark Brent crude futures contract flat at $63.30 per barrel, while U.S crude futures slipped 1.01% to $56.76 per barrel.

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https://www.cnbc.com/2019/07/05/stock-market-us-markets-await-key-jobs-data.html

2019-07-05 07:13:23Z
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Kamis, 04 Juli 2019

U.S. asks federal court to throw out Huawei lawsuit - Reuters

The Huawei logo is pictured on the company's stand during the 'Electronics Show - International Trade Fair for Consumer Electronics' at Ptak Warsaw Expo in Nadarzyn, Poland, May 10, 2019. REUTERS/Kacper Pempel

NEW YORK (Reuters) - The U.S. government filed a motion on Wednesday asking for the dismissal of a lawsuit by Chinese telecommunications giant Huawei Technologies Co Ltd that claimed the United States had acted illegally when it blacklisted Huawei’s products.

Huawei sued the U.S. government in early March, in a complaint filed in federal court in Texas, saying that a law limiting its American business was unconstitutional.

The company has been a component of the ongoing trade war between the U.S. and China that has hung over financial markets, with President Donald Trump recently agreeing to loosen restrictions on Huawei after meeting with Chinese President Xi Jinping at the Group of 20 summit.

Top representatives of the two countries are organizing to resume talks next week, according to Trump administration officials.

On Wednesday, the U.S. government said that because the company was still blacklisted, license requests from U.S. companies seeking to import products to Huawei were being reviewed “under the highest national security scrutiny.”

The government’s motion was filed in U.S. District Court for the Eastern District of Texas, the same court where the original complaint was filed.

Huawei did not immediately return a request for comment.

Huawei Technologies USA, Inc., & Huawei Technologies Co., Ltd. v United States of America, et al., No. 4:19-cv-00159-ALM

Reporting by Chuck Mikolajczak; Editing by Leslie Adler

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https://www.reuters.com/article/us-usa-china-huawei-tech/u-s-asks-federal-court-to-throw-out-huawei-lawsuit-idUSKCN1TZ224

2019-07-04 20:43:00Z
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Nexstar stations blacked out on AT&T DirecTV and U-verse amid contract dispute - USA TODAY

Some DirecTV and AT&T U-verse subscribers woke up Thursday to find they lost access to Nexstar stations.

More than 120 stations in 97 markets across the nation, which include ABC, CBS, FOX, and NBC affiliate stations, went dark at 11:59 p.m. local time July 3 after Nexstar and AT&T were unable to reach an agreement, both sides said in competing statements that each blame the other for the blackout.

“Nexstar has removed its channels from your lineup even though we offered Nexstar more money to keep them available to you,” AT&T said in its statement posted at https://tvpromise.att.com. “Nexstar simply said no and elected to remove them from your lineups instead, putting you in the middle of its negotiations.”

According to Nexstar's statement, AT&T "unilaterally dropped the network and local community programming" and refused to extend the existing distribution agreement to Aug. 2.

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What's next?

Disputes between content providers and cable and satellite providers aren't uncommon as companies try to negotiate new deals.

In its statement, Nexstar, also known as Nexstar Broadcasting Group, says it owns, operates, programs or provides sales and other services to 174 full power television stations and related digital multicast signals reaching 100 markets or nearly 39% of all U.S. television households.

"Nexstar remains eager to complete an agreement with DIRECTV consistent with those it has made with every other cable, satellite and telco provider in order to end DIRECTV’s action that is both unnecessary and punitive to its subscribers," Nexstar's statement said.

AT&T, which is the largest pay TV provider in the U.S., with 24.5 million subscribers, said it also is open to negotiating.

"We share your frustration and are working to return your local channels as soon as possible," AT&T's statement said. "These types of disputes are often resolved quickly, and we hope that will be the case this time."

How to watch your shows

AT&T says subscribers who lost access have some options.

“Most of these stations can be viewed over the air or online at the station websites. You should be able to find station websites by searching online for the name of the local station,” AT&T said noting most major networks stream primetime series on websites and apps.

Nexstar offered additional options in its statement.

“Viewers affected by the loss of service from DIRECTV have several alternatives to continue watching their favorite shows including local cable providers, DISH, over-the-air, certain subscription streaming television services, and services such as Verizon’s FIOS,” Nexstar said.

Follow USA TODAY reporter Kelly Tyko on Twitter: @KellyTyko

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https://www.usatoday.com/story/money/2019/07/04/at-t-directv-and-nextar-dispute-channels-blacked-out-independence-day/1648807001/

2019-07-04 17:52:00Z
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9 challenges Amazon faces on its 25th birthday - CNN

From calls for it be broken up by high-powered officials to questions about its worker pay and growing competition from rivals, the Seattle-based company could be facing a quarter-life crisis.

Elizabeth Warren calls for a breakup

Sen. Elizabeth Warren doesn't like what she sees in Big Tech. The Democratic presidential candidate released a plan to break up giant companies like Amazon (AMZN). She wants to impose new rules on certain kinds of tech companies that have $25 billion or more in annual revenue, and unwind some high-profile mergers such as Amazon's $13.7 billion purchase of Whole Foods.
"Today's big tech companies have too much power -- too much power over our economy, our society, and our democracy. They've bulldozed competition, used our private information for profit, and tilted the playing field against everyone else. And in the process, they have hurt small businesses and stifled innovation," Warren wrote in a Medium blog post published in March.

AOC slams Jeff Bezos' pay

Rep. Alexandria Ocasio-Cortez has slammed Amazon CEO Bezos for being a billionaire while his company pays its warehouse workers what she called "starvation wages."
She recently said in an interview with ABC News that the company's low worker pay has helped make Bezos the world's richest person.
In a response to the New York Democrat, Amazon said she is "just wrong." The company says it pays a $15 minimum wage and offers full benefits to employees in their first days on the job. It also noted that it has lobbied to raise the federal minimum wage.
Senator Bernie Sanders has also made similar arguments against Amazon's worker pay.

Biden questions Amazon's taxes

Joe Biden knocked Amazon over the amount of corporate taxes it pays.
"I have nothing against Amazon, but no company pulling in billions of dollars of profits should pay a lower tax rate than firefighters and teachers. We need to reward work, not just wealth," he said on Twitter. The tweet from the former vice president and Democratic presidential hopeful referenced a corporate tax rebate that Amazon received in 2018.
Amazon responded, saying in a tweet that the company pays "every penny we owe." It added: "Congress designed tax laws to encourage companies to reinvest in the American economy. We have $200B in investments since 2011 & 300K US jobs. Assume VP Biden's complaint is w/ the tax code, not Amazon."

Trump investigates post office deal

Amazon isn't getting much reprieve from the Trump administration, thanks to the president's beef with Amazon founder and CEO Jeff Bezos as well as the United States Postal Service.
Last year, Trump ordered a federal task force to investigate the Postal Service's finances because he thinks Amazon takes advantage of the agency. At the root of all this drama is likely Bezos' ownership of The Washington Post, which has published stories that are unfavorable of to Trump throughout his presidency.
Amazon has a confidential agreement with the Postal Service under which the agency delivers a large number of packages directly to the post office closest to their destination. The Postal Service then delivers the packages to customers.

Employees want to fix climate change

Amazon employees are putting pressure on the company to rethink how it contributes to the battle against global warming.
In April, a group of 3,500 employees signed a Medium post that urged Bezos to publicly outline the company's plans to reduce carbon emissions and its reliance on fossil fuels. The signatories said that Amazon's "sustainability goals lack context."
Amazon unveiled in February a project it called Shipment Zero, which makes all packages net zero carbon and 50% of all shipments net zero by 2030. The company said it has 200 scientists, engineers, and product designers focused on sustainability efforts, from solar and wind farms to efforts around shipment waste.

Angering its hometown headquarters

Amazon publicly opposed a proposed a new "head tax" that the city of Seattle wanted to place on large businesses to address homelessness and fund affordable housing. Companies would pay 26 cents per working hour for each employee it has in Seattle, or roughly $540 a year for every full-time employee.
The tax would've hit Amazon hard, since it's the city's largest private employer. It has more than 45,000 employees in the Washington city, so it would've paid more than $20 million a year. In response, Amazon temporarily halted construction of a new 17-floor tower.
The bill was scuttled and Seattle ended up passing a smaller version of the tax.

Problems with its HQ2

Amazon had to retreat from Long Island City in New York after it announced in February that it planned to build a second headquarters there. That news prompted lots of public outcry from both the public and local officials.
Amazon ditched its plans three months later, saying "a number of state and local politicians have made it clear that they oppose our presence." Critics blasted the $1.525 billion in incentives New York offered to lure the tech behemoth and worried that it would soon lead to longtime residents being priced out of their homes.

Amazon ditches China

Amazon also pulled back from the world's biggest market for online shopping, China. It closed its marketplace, meaning Amazon customers in the country will no longer be able to buy goods from Chinese merchants.
Amazon first entered the Chinese market 15 years ago, when it acquired an online book retailer, but it has struggled amid fierce competition. Research suggests that the company's market share in China was miniscule compared to local rivals, like Alibaba (BABA).

Stamping out anti-vaxxers

A CNN Business investigation in February revealed that Amazon was offering lots of anti-vaccination content to people seeking information about the controversial topic. When asked about it, Amazon said it provides customers with "access to a variety of viewpoints, including books that some customers may find objectionable."
Anti-vax material was also available on its Prime Video service. Days after the investigation published, Amazon began removing the anti-vaccine videos. But some books on the topic are still being sold despite the dangerous and unproven nature of the theory.

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https://www.cnn.com/2019/07/04/business/amazon-25th-birthday-challenges-trnd/index.html

2019-07-04 12:28:00Z
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Opinion: What Apple’s restructure means for the company and for Tim Cook - 9to5Mac

Apple’s restructure to accommodate the departure of Jony Ive led to some concern that Apple wasn’t giving design quite as high a profile in the past – amid claims and counter-claims about the run-up to it.

There is no direct replacement for Ive as head of design, and instead of the hardware and software leads reporting directly to CEO Tim Cook, they are reporting into COO Jeff Williams.

But this shouldn’t be cause for concern; quite the opposite …

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Apple’s restructure already makes sense

As my colleague Bradley Chambers observed, it already makes a lot of sense to have design report to operations.

Whenever people question design and COO, I want to point them to the MacBook keyboard issues.

Because Jony Ive had such power at Apple, he was able to push through a design that was beautifully slim but which couldn’t be manufactured with the required level of reliability. Hence the report today about Apple abandoning the butterfly design. Having operations able to push back against design decisions which look good in the lab but won’t scale to mass production is an extremely important change.

As Steve Jobs himself said:

Most people make the mistake of thinking design is what it looks like. People think it’s this veneer – that the designers are handed this box and told, “Make it look good!” That’s not what we think design is. It’s not just what it looks like and feels like. Design is how it works.

But the restructure goes further than this

Apple commentator John Gruber suggests that Apple’s restructure goes even further.

One key point that I missed in [my first take on Ive’s departure] is that having design chiefs Evans Hankey (Industrial Design) and Alan Dye (Human Interface Design) report directly to COO Jeff Williams does make sense organizationally. What I had missed is that coincident with the announcement of Ive’s departure, Apple promoted Sabih Khan to senior vice president of operations. Apple hasn’t had an SVP of operations since Jeff Williams held the title, back when Tim Cook was COO under Steve Jobs. Back then Williams ran operations while Cook ran the company and Jobs devoted his remaining time to new products.

Williams still holds the title COO, but titles don’t mean much at Apple. Rank matters, of course, and SVP is an elite level at Apple — there are only 13 executives at that level, and one of them is still Jony Ive. But the literal titles don’t necessary describe what executives do. Eddy Cue’s title — senior vice president of internet software and services — comes to mind. I don’t know where one would begin crafting a succinct title that accurately describes Cue’s domain, but that’s not it. That just doesn’t matter at Apple.

This means Sabih Kahn is running operations now. Jeff Williams’s title hasn’t changed, but he’s effectively now running product development. He’s led the Apple Watch product team from its inception; now I think he’s overseeing product for everything. Cook and Williams did run operations while holding the COO title, but what “COO” really means at Apple is “second in command”. Tim Cook didn’t move design under operations; he promoted Williams to a new position, effectively “chief product officer”, and as such it makes sense that Hankey and Dye would report to him.

Gruber suggests that Williams’ real role now is ‘chief product officer,’ but given that both hardware and software design heads report to him, you could equally well argue that Williams has now taken on Ive’s role as head of design.

Either way, Apple’s restructure means we now have someone with immense operations experience making the final call on design decisions, and that’s got to be good news when it comes to product reliability.

There’s a reason Williams keeps his COO title

As for title, there’s likely a very good reason Williams remains COO on paper, whatever his real responsibilities. That title does indeed say ‘second in command,’ but more specifically it means ‘CEO designate.’ At some point, Williams is going to replace Cook.

That raises the question of when Cook will go, and what he will do. The ‘what’ is, I think, clear. Cook said back in 2015 that he plans to give away all his wealth, and to take a thoughtful approach to the way that money is used.

He plans to give away all his wealth, after providing for the college education of his 10-year-old nephew […] Cook says that he has already begun donating money quietly, but that he plans to take time to develop a systematic approach to philanthropy rather than simply writing checks.

The most obvious way to do that would be by establishing a foundation, and then running it himself. To do exactly what Bill Gates did, leaving his role as Chairman of Microsoft to establish the Bill & Melinda Gates Foundation.

Cook doesn’t have the same sums of money to play with, of course, but he’s still the kind of man who would want to take an extremely active role in ensuring that the money is spent in a way that achieves the biggest impact in the areas which matter most to him.

Cook also frequently speaks out on social issues, and has taken a certain amount of flack for doing so. There are those who feel that he should be focusing less on activism and more on his role at Apple, and I can see a time where he decides that the activism is more important to him. Right now, his role as Apple CEO amplifies his voice, but there will come a time when he feels his profile is high enough to maintain media interest without the job title.

When that will be is harder to predict. Cook clearly cares immensely about Apple, but that doesn’t mean he will necessarily want to continue running the company indefinitely. If he feels Williams represents a safe pair of hands – something already demonstrated by this restructure – then that makes it possible for him to hand over the reigns with a clean conscience sooner rather than later.

Apple can’t afford another major upheaval in its senior leadership anytime in the immediate future, but two years down the line? I could see that.

That’s my take on Apple’s restructure; what’s your view? Please share your thoughts in the comments.

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Image: TIME

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https://9to5mac.com/2019/07/04/apples-restructure/

2019-07-04 11:52:00Z
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