Posts belonging to Category Industry



Levi Strauss valued at $6.6 billion

IPO prices above target

Levi Strauss & Co fetched a higher price than expected in its initial public offering (IPO) on Wednesday, selling $623.3 million in shares as the U.S. jeans maker looks to return to the stock market after 34 years as a family-owned company.
The success of the IPO underscores the diverging fortunes of retail companies over the last few years. Vendors like Levi with consistently popular offerings have flourished as they reach more shoppers through online channels, while tens of thousands of brick-and-mortar stores have closed under pressure from e-commerce giants such as Amazon.com Inc.

With the stock market hovering near all-time highs, Levi said it priced its IPO at $17 share, just above its target range of $14 to $16, valuing the company at about $6.6 billion.

https://www.reuters.com/

Disney Closes $71 Billion 21st Century Fox Deal

Birth of a preeminent global entertainment company

Before the end of the East Coast airing of “Jimmy Kimmel Live!”, Disney has formally sealed the deal on its $71 billion acquisition of 21st Century Fox.

“This is an extraordinary and historic moment for us — one that will create significant long-term value for our company and our shareholders,” Disney chairman-CEO Bob Iger said in a statement on Tuesday afternoon. “Combining Disney’s and 21st Century Fox’s wealth of creative content and proven talent creates the preeminent global entertainment company, well positioned to lead in an incredibly dynamic and transformative era.”

Disney took possession of 21st Century Fox at 12:02 a.m. ET. Assets changing hands in the deal include: Twentieth Century Fox, Fox Searchlight Pictures, Fox 2000 Pictures, Fox Family, and Fox Animation; Fox’s television creative units, Twentieth Century Fox Television, FX Productions, and Fox21; FX Networks; National Geographic Partners; Fox Networks Group International; Star India; and Fox’s interests in Hulu, Tata Sky, and Endemol Shine Group.

https://www.variety.com/

No-Deal Brexit: the UK will scrap 87% of tariffs

UK will not set up Irish border checks under a no-deal Brexit

The UK would refuse to introduce any Irish border checks and scrap 87% of tariffs on imported goods to the UK if it leaves the EU without a deal, officials have confirmed.

Theresa May’s government published explosive details of the tariff cuts and its Irish border plans after Theresa May’s Brexit deal was defeated heavily in parliament on Tuesday, significantly increasing the likelihood of no deal.

Downing Street would take unilateral measures to maintain an open Irish border by not introducing any new checks or controls on goods moving from Ireland to Northern Ireland, including no customs declarations for normal goods.

http://www.businessinsider.com

Haven, or how to tackle rising health-care costs

The joint health-care venture between Amazon, J.P. Morgan and Berkshire Hathaway finally has a name

Amazon CEO Jeff Bezos, J.P. Morgan CEO Jamie Dimon and Berkshire Hathaway CEO Warren Buffett last January announced they were teaming up to tackle rising health-care costs. They formed a nonprofit company and named renowned surgeon, author and speaker Dr. Atul Gawande as CEO in June.
“We want to change the way people experience health care so that it is simpler, better, and lower cost,” Gawande said in a statement on Wednesday. “We’ll start small, learn from the experience of patients, and continue to expand to meet their needs.”

http://www.cnbc.com/

Tesla Gigafactory in Shangai To Be Complete In Summer Of 2019

10% of the total planned capacity of the plant

The breakneck pace of work at Tesla’s Shanghai Gigafactory continues with the announcement that the company has started an energy conservation assessment in cooperation with several governmental agencies. In a further update, Chinese media noted that the project would be completed in the summer of 2019.

The first phase of the Tesla Gigafactory in Shanghai is only an estimated 10% of the total planned capacity of the plant and will be producing the first cars by the end of this year.

The factory will produce Tesla’s smaller Model 3 and Model Y vehicles, launching with the Model 3 and starting production of Model Y essentially in parallel with production in the United States (at Tesla’s Gigafactory 1 in Nevada).

http://www.cleantechnica.com

Apple iPhone sales in China fell by 20% in fourth quarter

Sales by Chinese rival Huawei soared by 23% 

Apple Inc iPhone sales in China fell 20 percent year-on-year in the fourth quarter of 2018, while sales for smartphones made by home-grown rival Huawei soared by 23 percent, data from industry research firm IDC showed on Monday.

The report is the first to put a firm number on the scale of a recent decline in Apple’s fortunes in the world’s second largest economy, after Chief Executive Officer Tim Cook pointed to China as a big factor in a rare cut in the company’s quarterly sales forecast last month.

http://www.reuters.com

Tesla to buy energy tech company Maxwell Technologies

The deal represents a 55% premium over Maxwell’s closing stock price

Tesla plans to acquire energy technology company Maxwell Technologies for about $218 million, the company said Monday. Tesla will buy the company’s 45.9 million shares for $4.75 a share in an all-stock transaction. The deal represents a 55 percent premium over Maxwell’s closing stock price of $3.07 a share Friday and would value the company at around $218 million. 

Maxwell makes ultracapacitors, devices that can store and rapidly deliver surges of energy. Tesla CEO Elon Musk is a fan of the technology for electric cars. Musk has said in the past that the technology could be a more likely source of a breakthrough in electric vehicle technology than batteries. Musk even once said on Twitter that he had planned to conduct research on them at Stanford University.

http://cnbc.com

Chinese tech investors flee Silicon Valley

Trump tightens scrutiny

New Trump administration policies aimed at curbing China’s access to American innovation have all but halted Chinese investment in U.S. technology startups, as both investors and startup founders abandon deals amid scrutiny from Washington. Chinese venture funding in U.S. startups crested to a record $3 billion last year, according to New York economic research firm Rhodium Group, spurred by a rush of investors and tech companies scrambling to complete deals before a new regulatory regime was approved in August.

Since then, Chinese venture funding in U.S. startups has slowed to a trickle, Reuters interviews with more than 35 industry players show. U.S. President Donald Trump signed new legislation expanding the government’s ability to block foreign investment in U.S. companies, regardless of the investor’s country of origin. But Trump has been particularly vocal about stopping China from getting its hands on strategic U.S. technologies.

https://www.reuters.com/

Bio-Pharma: BMS Buys Celgene

The new year is starting off with a $74 billion bang

Bristol-Myers Squibb will acquire Celgene Corporation to create a pharma giant with a significant pipeline focused on oncology, inflammatory and immunologic diseases, and cardiovascular disease.

The deal comes days ahead of the 37th annual J.P. Morgan Healthcare Conference and, in some ways, mirrors Celgene’s significant $9 billion acquisition of Juno Therapeutics and $7 billion acquisition of San Diego-based Impact Biomedicines at the beginning of 2018. The BMS deal for Celgene is a cash and stock transaction. Celgene shareholders will receive one share of BMS stock and $50 in cash for each share of Celgene stock they own. Celgene shareholders will also receive one tradeable Contingent Value Right (CVR) for each share of Celgene. The CVR will entitle the holder to receive a payment for the achievement of future regulatory milestones.

Shares of Celgene have shot up more than 31 percent on the news, rising to $87.90 in premarket trading. Celgene closed at $66.64 on Wednesday. Shares of BMS, on the other hand, are down 11.5 percent to $46.40 in premarket trading.

https://biospace.com/

Apple shares plunge

Tim Cook slashes revenue outlook, blaming China slowdown and trade

The company now expects revenue of about US$84 billion in the quarter ended December 29, chief executive Tim Cook said in a letter to investors Wednesday. Analysts had been forecasting US$91.3 billion, according to data compiled by Bloomberg.

Apple shares fell 7.6 per cent in extended trading after the announcement.

https://cnbc.com/

Bill Gates: U.S. leaders must embrace nuclear energy

U.S. built most of its reactors more than 30 years ago

Think your New Year’s resolution to hit the gym is daunting? Microsoft co-founder Bill Gates wants to change an entire nation’s energy policy in 2019.

On Saturday, the billionaire philanthropist released a letter detailing what he learned in 2018 and what he hopes to accomplish in 2019. One of his goals for the next year is to persuade U.S. leaders to “get into the game” of advanced nuclear energy — and the future of our environment could be riding on his success.

Nuclear energy is produced by splitting the nucleus of an atom (fission) or combining the nuclei of two atoms (fusion). Nuclear fission reactors already meet 20 percent of the U.S.’s electricity needs. But while fission doesn’t produce greenhouse gas emissions, the technology is currently less than ideal — the U.S. built most of its reactors more than 30 years ago, and they require plutonium, which isn’t exactly easily accessible. The process also produces unwanted byproducts, some of which are radioactive.

Researchers have yet to figure out a way to produce stable nuclear fusion, but they’re getting closer. If — or, hopefully, when — they do succeed, we’ll have a near-limitless source of clean energy that we can create from hydrogen, which is far more accessible than plutonium, and the only byproduct would be a small amount of helium.

https://futurism.com/

White House wants to bar Huawei, ZTE purchases

U.S. companies will be barred to use telecom equipment made by Huawei and ZTE

President Donald Trump is considering an executive order in the new year to declare a national emergency that would bar U.S. companies from using telecommunications equipment made by China’s Huawei and ZTE, according to three sources familiar with the situation.

It would be the latest step by the Trump administration to cut Huawei Technologies Cos Ltd [HWT.UL] and ZTE Corp, two of China’s biggest network equipment companies, out of the U.S. market.

The United States says the companies work at the behest of the Chinese government and that their equipment could be used to spy on Americans.

http://reuters.com

Apple shares fall

Facing the reality of market saturation

Apple shares fell Tuesday after HSBC downgraded the stock, citing too much dependence on a single product and slowing emerging markets economies. HSBC downgraded Apple to hold from buy and cut its 12-month price target to $200 from $205. Apple shares fell 1.7 percent to $181.66 shortly after the opening bell Tuesday, adding to an 18 percent decline already for this quarter.
The note from the HSBC analysts said: “Apple’s iconic hardware unit growth is broadly over for now. Revenues are only supported by higher selling prices and by the development of services. Flat unit growth has hit Apple’s share price and incidentally its key suppliers. What has made the success of Apple, a concentrated portfolio of highly desirable (and pricy) products is now facing the reality of market saturation.”
http://www.cnbc.com

Europe ready to retaliate if U.S. imposes auto tariffs

EU has a list of potential retaliation targets ready

European Union Trade Commissioner Cecilia Malmstrom said on Wednesday that the EU has a list of potential retaliation targets ready in case U.S. President Donald Trump imposes auto tariffs on the bloc’s member states. Malmstrom told reporters after a meeting with U.S. Trade Representative Robert Lighthizer that they did not speak specifically about auto tariffs, but focused instead on regulatory cooperation issues and ways to enable EU countries to import more American soybeans and liquefied natural gas.

Malmstrom did not specify the U.S. products on which the EU would levy retaliatory tariffs, as consultations with member states would need to take place, but she said the list could include “all kinds” of products.
“It could be cars, it could be agriculture, it could be industrial products – it could be everything. And we will do that, but hope we don’t have to get to that situation,” she said.

World's longest sea bridge to open in China

The 55km bridge links Hong Kong and Macau to the Chinese mainland

The world’s longest sea bridge is set to open this week, linking the cities of Hong Kong and Macau to the Chinese mainland as part of a broader contentious plan to integrate the special administrative regions into China.
The $20bn Hong Kong-Zhuhai-Macau bridge officially opens on Tuesday in a ceremony that Chinese president Xi Jinping is reportedly planning to attend. Officials are billing the 55km bridge as a key part of the Greater Bay Area plan, a campaign to connect Hong Kong and Macau to 11 Chinese cities to form a high-tech region to rival Silicon Valley.
The bridge links Hong Kong’s Lantau island to Zhuhai on the southern coast of Guangdong province and the gambling hub of Macau, a popular tourist spot for Chinese visitors.