Showing posts with label EU. Show all posts
Showing posts with label EU. Show all posts

2019-07-06

Tech Review 1) Why Jony Ive Chose To Leave Apple, 2) Big Tech & Profits

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Tech Review (TR 2019-07-06)--Domain Mondo's weekly review of tech investing news: Features • 1) Why Jony Ive Chose To Leave Apple, 2) Big Tech: Do Profits Really Matter? 3) Investing: The Week & Investor Notes: China & Huawei, Eurozone Japanification, US Pension Crisis & Federal Debt, 4) ICYMI Tech News: WTF Apple? Amazon, Broadcom, Antitrust, Google, and more.
UPDATE Deutsche Bank (NYSE: DB) bites the bullet, radical transformation, new leadership, cuts 18,000 jobs. 
1) Why Jony Ive Chose To Leave Apple

Jony Ive will leave Apple later this year to start a new venture of his own, called LoveFrom, with Apple as his first client. No one will be taking Jony Ive's title, Chief Design Officer, a position at the center of 20 years of product development at Apple, when he leaves, says the FT.com's technology correspondent Tim Bradshaw, who talks about his exclusive interview with Jony Ive in the video above published June 28, 2019.
"To create something that's genuinely new, you have to start again and I think with great intent, you disconnect from the past."--Jony Ive
Editor's note:  Why did Jony Ive choose to leave Apple? He simply wanted to do something new.

See also: Apple Chief Executive Tim Cook on Monday fiercely disputed a WSJ report about the departure of Jony Ive and the company's ability to uphold its commitment to innovative design.

2) Big Tech: do profits really matter?

Why are loss-making tech companies still attracting investors who are willing to wait for companies to turn a profit? FT.com video published July 1, 2019.

Note also re: fracking technology: “I'm not aware of another case of a disruptive technological change that has done so much harm to the industry that created the change ... While hundreds of billions of dollars of benefits have accrued to hundreds of millions of people, the amount of shareholder value destruction registers in the hundreds of billions of dollars ... The industry is self-destructive.”--Steve Schlotterbeck, former chief executive of EQT, a shale gas giant, at a petrochemicals conference in Pittsburgh. Editor's note: and this doesn't even begin to address  fracking's health and environmental issues.

3) Investing
graphic: "INVESTING"  ©2017 DomainMondo.com
The Week: NASDAQ Composite +1.9% | S&P 500 Index +1.7% | DJIA +1.2%
Stocks finished slightly lower on Friday, backing away from all-time highs hit earlier this week, after a better-than-expected employment report in June partially rolled back investors' expectations for multiple rate cuts this year.
I Just Hope the Fed Doesn’t See This Jobs Report--wolfstreet.com. U.S. nonfarm payrolls rose 224,000 in June, well above market expectations of 165,000, according to the Labor Department. The unemployment rate edged higher to 3.7% (300,000 people entered the labor force looking for work and therefore counted as unemployed), but was still near 50-year lows. Wage growth was 3.1% year over year.
Goldman Sachs' explanation on why there is now a "bull market in almost everything"--"monetary policy" remains the main driver of risk appetite and expectations are now very bullish.

Global hedge fund liquidations exceeded launches for the third consecutive quarter as managers faced a tough capital-raising environment. About 213 funds closed in the first three months of this year, compared with 136 that opened--bloomberg.com. Editor's note: why pay the high fees?
Investor Notes: 
China: "The Huawei battle reflects a fundamental geostrategic shift in Washington. For decades, the U.S. foreign policy establishment assumed Beijing would evolve into a cooperative partner in the rules-based, American-led international order that did so much to foster China's boom. That hope has evaporated. Now, the United States sees China as an adversary determined to challenge American leadership in technology and innovation. President Donald Trump has launched a trade war against Beijing and is boosting defense spending. Huawei is cast as a Chinese standard-bearer in that struggle."--Special Report | reuters.com See also:

EU: The Eurozone’s Japanification--with the eurozone economy stuck in a low growth, low inflation and low rates environment, it's really hard not to make 'Japanification' comparisons. If we're honest, the eurozone is probably already in the thick of it, which means rates are likely to remain lower for longer and every new crisis or recession will bring the bloc closer to more Japanification--ing.com. See also French Bond Yields Slide Below Zero, Hit All Time Record Lows and Deutsche Bank's Restructuring Plan To Cost Staggering €5 Billion--zerohedge.com; German prosecutors are escalating a money laundering inquiry involving Deutsche Bank, including planned raids on wealthy former clients, a person with direct knowledge of the matter told reuters.com.
There is the ongoing economic misery across Europe. Most of the economy remains stalled – and there are signs it could get worse ...  I am not anti-European, but I think it’s about to go through a slow implosion. There is an increasing likelihood Europe becomes largely detached and delinked from the US and other Occidental economies, and irrelevant to the growth economies of the Orient. From a trade perspective, I suspect we’d [UK] be better off outside [the European Union]--Bill Blain.
See also  How Does the European Union Work? The EU’s authority has steadily expanded as its members have passed more and more decision-making power to the union--cfr.org. New leaders of the EU / ECB (nominees still need to be debated and ratified by the European Parliament):
  • Ursula von der Leyen, 60, Germany: European Commission President;
  • Charles Michel, 43, Belgium: President of the European Council;
  • Josep Borrell, 72, Spain: EU High Representative (foreign policy);
  • Christine Lagarde, 63, France: European Central Bank President.

U.S. Under the Radar: Pension Crisis Deepens in U.S. as strategies shift, outlooks dim--bloomberg.com. "I can only repeat again and again: There is no solution to the woefully underfunded pensions in Chicago and in Illinois that does not involve benefit cuts subsequent to a 2020 constitutional amendment or municipal bankruptcy.  And the sooner Pritzker and Lightfoot figure that out, the better off we’ll all be."--wirepoints.org. Note also: soaring federal debt "poses substantial risks for the nation" warns Congressional Budget Office (CBO).

4) ICYMI Tech News:
graphic: "ICYMI Tech News" ©2017 DomainMondo.com
WTF Apple? Apple Moves Mac Pro Production to China--the $6,000 desktop computer had been the company’s only major device assembled in the U.S.--wsj.com. See also Electronics exodus from China--HP and Dell plan to shift up to 30% of notebook production out of China; Microsoft, Google, Amazon, Sony, Nintendo also want to move some production--nikkei.com.

Airbnb is among IPOs investors are anticipating in the second half of 2019--CNBC (video).

Broadcom In Advanced Talks to Acquire Symantec--another software acquisition by CEO Tan?

Antitrust: Retail Industry Leaders Association (RILA) representing Walmart, Target, Best Buy, others writes to FTC (pdf) about tech giant dominance, offering help with antitrust probes, and calls out Amazon and Google. 

Amazon & Product Liability: 3rd U.S. Circuit Court of Appeals (2-1) rules customers can sue Amazon when they buy defective products from its platform, even if Amazon did not make those products.

What's left to monetize? It appears the answer is "very little."--blogspot.com--"Advertising has always monetized consumers' time and attention, what we call engagement today. Big Tech has generated billions of dollars by monetizing other forms of engagement and privately owned capital/assets. Google has monetized web search ... AirBNB has monetized privately owned or leased homes and flats ..."

Early front-runners to regulate Libra are FINMA (Switzerland) and BOE (UK): "The long-run success of Libra critically depends on finding a nation with financial gravitas willing to provide Libra-friendly rules."--seekingalpha.com.

Ireland-based cryptocurrency exchange Bitsane has apparently vanished, taking as many as 246,000 users’ crypto deposits with it.--zerohedge.com.

Personal Tech: Surviving a SIM swap attack | zdnet.com--"Turns out, the attack was likely driven by a Coinbase account I experimented with in early 2018 that was never closed." See also The Motherboard Guide to Not Getting Hacked.

-- John Poole, Editor • Domain Mondo

feedback & comments via twitter @DomainMondo


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2019-06-29

Tech Review | US Imports From Vietnam Surge, While China Declines

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Tech Review (TR 2019-06-29)--Domain Mondo's weekly review of tech investing news: Features • 1) Trump Effect: US Imports From Vietnam Surge, While China Declines, 2)  Facebook's Libra Could Disrupt the Remittance Industry, 3) Investing YTD & Investor Notes: China, EU, US, & Zombies,  4) ICYMI Tech News: Apple, Flipkart, iQiyi, Google, Microsoft, Amazon, and more.

1) Trump Effect: US Imports From Vietnam Surge, While China Declines
And it's not just Vietnam that is a winner from the US-China Trade War:
source: statista.com
Editor's note and caveat: "Exports from China are a murky thing. To dodge tariffs, some of it gets transshipped via other countries, such as Vietnam, before the products are shipped to their destinations, such as the US or the EU ..."--Wolfstreet.com.

Nevertheless, in a note this week, Anne Stevenson-Yang, co-founder of J. Capital Research  (domain: jcapitalresearch.com), wrote that China has already entered its “Japanese phase,” marshalling financial resources exclusively to avoid crisis. China's economy is overleveraged, as demonstrated clearly by the Baoshang situation, and China may now be prey to further problems, perhaps even a perfect storm event.

China is again resorting to such tactics as gross overproduction of steel in a desperate attenpt to keep its economy humming, but even that may fail. In order of tonnage of crude steel, ArcelorMittal is first with 96.4 Mt (in 2006, India’s giant Mittal Steel acquired French giant Arcelor; and is now registered in Luxembourg as a mailbox company run from India) and the EU has had tariffs on Chinese steel for years.

Also note:
  • Vietnam economy (GDP April-June quarter) grows nearly 7% on trade war tailwinds--Manufacturing exodus from China propels one of fastest boosts in region--nikkei.com.
  • India Plans to Offer Incentives to Companies Moving From China--"aim is to become a production base for firms fleeing tariffs."
  • Vietnam's Vingroup in deal with Fujitsu unit, Qualcomm to make 5G phones to be manufactured in Hanoi and sold in the U.S. and Europe in 2020.
  • A Dark Alley in China’s Credit Market Is Getting Rough--bloomberg.com June 24, 2019.
  • As China's Banking System Freezes, SHIBOR Tumbles To Lowest In A Decade--zerohedge.com June 24, 2019.
  • Trump Pressured by Congress to Stay Tough on Huawei--bloomberg.com June 24, 2019.
  • The U.S. is now playing down expectations for progress from a Trump-Xi meeting during the G20 June 28-29, with the U.S. holding its hard line demands for meaningful Chinese economic reforms, according to Bloomberg.

2) Facebook's Libra Could Disrupt the Remittance Industry
source: statista.com
Money transfers a/ka "remittances" to low- and middle-income countries reached a record high of $529 billion in 2018, according to the World Bank and the world's total remittances in 2018 were $689 billion. “Success will mean that a person working abroad has a fast and simple way to send money to family back home,” says Libra’s white paper, and the UN Sustainable Development Goals aim to reduce the transaction costs of migrant remittances to less than 3 percent and eliminate remittance corridors with costs higher than 5 percent by 2030. Libra could lead the way. See also:  How Libra Cryptocurrency & Blockchain Network Will Work (video).

3) Investing
graphic: "INVESTING"  ©2017 DomainMondo.com
YTD (Year-to-date): NASDAQ Composite +21% | S&P 500 Index +17%  | DJIA +14%
The DJIA closed at 26,599 on Friday, up 73 points, its best first half since 1999 and best June since 1938. It was also the best June for the S&P 500 since 1955.
US: Economy Breaks Record on Trump’s Watch--bloomberg.com: “If voters went to the ballot box today, it would be the strongest economy in U.S. election history,” said Justin Waring, an investment strategist at UBS in New York. Unemployment is close to a half-century low and inflation is so subdued that some have pronounced it dead. 
Editor's note: this is neither a Bull Market nor a Bear Market, this is Trump's Market.
Investor Notes: 
China: signs of a slowdown in China’s property market continue --office vacancies in tech-centric Shenzhen rose to more than 23% for the first half of 2019, a decade high, reported Caixin (domain: caixinglobal.com).

EU: "There is no common Fiscal Policy. Thus the Eurozone stagnates, withers and has utterly lost momentum …" The next ECB president? "Best candidate for the ECB job is going to be a secondary issue to how many other jobs France and Germany get."--Bill Blain. And Brexit? UK looks cheap ... but we still face a few more months of fraxious uncertainty.

US: "... investors, both foreign and domestic, continue to buy Treasuries, no matter the risks associated with them. And the longer they buy Treasuries, the bigger the US debt load becomes, and — ironically — the lower the risk of default."--cfainstitute.org.

Zombies: A report from the Bank for International Settlements found 12% of publicly listed companies around the world can be described as zombie firms:
"The rising number of so-called zombie firms, defined as firms that are unable to cover debt servicing costs from current profits over an extended period, has attracted increasing attention in both academic and policy circles. Using firm-level data on listed firms in 14 advanced economies, we document a ratcheting-up in the prevalence of zombies since the late 1980s. Our analysis suggests that this increase is linked to reduced financial pressure, which in turn seems to reflect in part the effects of lower interest rates. We further find that zombies weigh on economic performance because they are less productive and because their presence lowers investment in and employment at more productive firms."--BIS report, supra.
"Policies created to pull the world out of recession are still in place, but now they are strangling the global economy ... we are in a fat and slow world," wrote Ruchir Sharma in the New York Times, June 15, 2019. What exactly is the problem?
"The trademarks of the fat and slow world: larger corporations, declining competition and fewer start-ups (all of which contribute to wage inequality), ... together undermine and slow economies already hindered by falling growth in the working-age population."--Sharma, supra.

4) ICYMI Tech News:
graphic: "ICYMI Tech News" ©2017 DomainMondo.com
Jony Ive Is Leaving Apple--but he's not being replaced, and the design team reporting to operations makes no sense--daringfireball.net.

Walmart Inc’s Indian unit Flipkart said late Thursday it plans to replace nearly 40% of its current fleet of delivery vans with electric vehicles (EVs) by March 2020.

iQiyi (domain: iqiyi.com) China’s version of Netflix, reportedly wants to enter overseas markets including North America and Japan after hitting a milestone of 100 million paying subscribers this month, even though the company has been in a cash-burning fight with Tencent’s video site and Alibaba-backed Youku Tudou in China. See also: China's Alibaba aims to double Tmall Global brands with English portal.

Toyota to invest $2 billion in developing electric vehicles in Indonesia.

Goodbye, Chrome? Google’s web browser has become spy software ... why Firefox is better says Washington Post (owned by Amazon's Jeff Bezos).

Google Drive vs. Microsoft's OneDrive: choosing the right cloud storage and collaboration service.

Bezos Blowback? Will The AWS JEDI Scandal Upset Amazon's Omnipotence?--zerohedge.com.

The Empty Promise of Data Moats--a16z.com: data goes stale over time…

The European Digital Social Innovation Index by Nesta, published for the first time this year, found London came out on top in a ranking of 60 EU cities on indicators such as funding, skills, infrastructure and diversity. The European Digital Social Innovation Index (EDSII) is the first index ranking how different European cities support digital social innovation (DSI) and tech for good to grow and thrive. London had a significant lead over Amsterdam, which came in second place. Copenhagen, Stockholm and Paris rounded out the top five.

Personal Tech: going 'off the grid' this summer? Iridium GO!--turn any smartphone into a satellite phone--you can get access to phone calls, text, and more, 'off-grid' via the Iridium satellite network.

Parting Thoughts:
  • Tulsi Gabbard is the winner--Drudge instant poll shows Gabbard won the first Democratic debate in landslide.
  • Always "ask if the algorithm, which is a model of the world, is working the way it was designed to work. Models represent the market, and models are not reality. As Alfred Korzybski said, “The map is not the territory.”

-- John Poole, Editor, Domain Mondo  

feedback & comments via twitter @DomainMondo


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2019-06-08

Tech Review | Tech Fade? Apple, Google, Facebook, Amazon

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Tech Review (TR 2019-06-08)--Domain Mondo's weekly review of tech investing news: Features • 1) Tech Fade? Apple,Google, Facebook, Amazon, 2) Antitrust & $AAPL, $GOOGL, $FB, $AMZN, 3) Investing: The Week & Investor Notes,  4)ICYMI Tech News: Huawei, Amazon, PlanetScale, #FoodDelivery, and more.

1) Tech Fade? Apple, Google, Facebook, Amazon
Tech Fade: "We just don’t get as excited about tech as we used to"--enthusiasm about startups and embracing new things has been replaced by cynicism.

WWDC19 Keynote June 3, 2019, at 10 a.m. PDT Streamed LIVE:
source: statista.com
Did The Tech Bubble Just Pop: Investors Balk At SoftBank's Attempt To Raise $100 Billion: "Something is not quite right with SoftBank."

2) Antitrust & $AAPL, $GOOGL, $FB, $AMZN

CNBC Television video above published Jun 5, 2019: discussion on antitrust and U.S. tech companies with CNBC's Josh Lipton and Joe Kernen, and the Fast Money traders, Pete Najarian, Tim Seymour, Karen Finerman and Guy Adami, and Antitrust Lawyer Gary Reback, Carr & Ferrell, on the government's antitrust case against Google.
  • Google, Amazon, Facebook and Apple, worth nearly $3 trillion combined, reportedly under federal investigation.
  • Google Should Be Afraid. Very Afraid--a new round of antitrust questions can’t go well for the company. The culture has turned against tech since Google skated free in 2013--bloomberg.com.
  • Google has few political allies and a history of complaints, so an antitrust case may move quickly, say experts.
  • FTC and DOJ agree on antitrust oversight of Google and Amazon, putting Amazon under FTC and Google under DOJ.
  • The House Judiciary Committee is launching a bipartisan investigation into whether large tech companies such as Facebook, Google and Amazon are using their vast market power to suppress competition.
  • A possible Apple probe is reportedly linked to the Google probe, and stems from meetings between the DOJ and the FTC.

3) Investing
graphic: "INVESTING"  ©2017 DomainMondo.com
The Week: NASDAQ Composite +3.9%| S&P 500 Index +4.4% | DJIA +4.7%  
U.S. markets' best week of the year--Trump was right about the Fed.
Investor Notes: in the U.S. Q1 turned out much better than what many pundits predicted:
and Despite Tariff Concerns, Analysts Making Smaller Cuts Than Average To EPS Estimates For Q2 | FactSet.com. Also: History Points To A Recovery in US Stocks--DatatrekResearch.com May 31, 2019--"data shows upside ahead despite a rocky May."

EU: The eurozone economy is stumbling and risks to financial stability are rising, says the European Central Bank (ECB). Italy Is Threatening to Repeat the Greek Debt Crisis—But With Higher Stakes | Fortune.com. Italy's GDP per capita remains stagnant at the same level as 18 years ago--Is The Sinking Italian Economy Just The Tip Of The Iceberg?--SeekingAlpha.com.

China: Chinese Bank With $105 BN In Assets On Verge Of Collapse. China’s stock market hit by the biggest outflow of foreign capital on record in April and May as trade war with the US and worry about the stability of the RMB weighed on investors, reported the Financial Times. China services PMI Plunges As Output Expectations Hit 7 Year Lows--zerohedge.com. Also: Pentagon report slams China for “eroding the values and principles of the rules-based order”--bloomberg.com.

4) ICYMI Tech News:
graphic: "ICYMI Tech News" ©2017 DomainMondo.com
Huawei is selling off its undersea telecom cable business, its first major asset sale since the U.S. Government's accusations against the company. Facebook suspends app pre-installs on Huawei phones.

Amazon says 10 million items are now available for one-day shipping; while Walmart's recently launched 'next-day shipping' has only about 200,000 items available.

Amazon said it would open pop-up shops in the UK to give more than 100 small online businesses an opportunity to sell on the 'high street' for the first time. “Clicks and Mortar” stores will sell homeware, health and beauty, food and drink, and electronics.

Food-Delivery Rivals DoorDash, Grubhub, Uber Eats and Postmates Risk Capital Destruction--a problem in the 'valuations.'

Boeing 737 Max: fatal flaws can be traced to a breakdown late in the plane’s development, when test pilots, engineers and regulators were left in the dark about a change that would ultimately play a role in two crashes--NYTimes.com.

IBM: 5% Yield And Nearing Dividend Aristocrat Status?

Google To Buy Data Analytics Startup Looker for $2.6B.

Personal tech: FCC votes unanimously (pdf) to let carriers block robocalls by default and advances proposed rule for carriers to adopt SHAKEN/STIR caller ID system.

-- John Poole, Editor, Domain Mondo  

feedback & comments via twitter @DomainMondo


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2019-05-30

Margrethe Vestager | The Right Person for Top EU Job (video)

Margrethe Vestager the right person for top EU job, politician says

Luis Garicano, vice president of the ALDE, says Margrethe Vestager is the right person for top EU job, EU Commission President. CNBC International TV video above published on May 29, 2019.

Danish Prime Minister Lars Løkke Rasmussen has given a strong signal that Denmark would push for EU Competition Commissioner Margrethe Vestager to take the EU's top job. Rasmussen, who was previously a political rival of Vestager, described her as "the best candidate" to succeed Commission President Jean-Claude Juncker, ahead of an informal summit of EU leaders on Tuesday.

Merkel and Macron clash over the EU’s future leadership

Financial Times (ft.com) video above published May 28, 2019: Angela Merkel has made an impassioned defence of Manfred Weber, the German candidate to head the European Commission, shielding him from attacks from French president Emmanuel Macron that exposed divisions over the EU’s future leadership.


feedback & comments via twitter @DomainMondo


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2019-05-27

European Election Results LIVE

Nigel Farage | Good Morning Britain: 

Good Morning Britain video published May 27, 2019: Nigel Farage interviewed the morning after the Brexit Party stormed ahead in the EU elections, said the Brexit Party will not stop until the UK leaves the European Union, citing the failure to depart on March 30th as the reason many in the UK chose to vote for the party.

UPDATE: Brexit Party & EU Populists Shatter EU Status Quo With Strong Showing In EU Parliamentary Vote--zerohedge.com. See this EU election results graphic.

European elections 2019 UK results: Brexit Party wins nine of first 10 regions; Liberal Democrats triumph over Labour Party in London--telegraph.co.uk

Centrist bloc to lose majority in EU vote as Greens and Euroskeptics gain, early results show--cnbc.com. The European parliamentary election is the second-largest democratic exercise in the world, with citizens across 28 nations voting for their new representatives. Over 400 million people are eligible to take part and the vote has major implications for the functioning of the EU and future national politics in each member state. The EU Parliament has a say on policies like agriculture and trade and is made of 751 MEPs (Members of the European Parliament).

Official Results: https://election-results.eu/

FRANCE 24 Live:

European Elections: May 23-26, 2019: The Netherlands and the UK voted first, on Thursday 23 May 2019, but most of the 21 EU member states vote Sunday, May 26, and results cannot be announced before the last polling station closes at 11pm Central European Time (CET) in Italy (Sunday 6pm EDT in the US).

Election Results: officials at the European Parliament expect to announce the first projection of results, based on exit polls and counted votes, as soon as 11:15pm CET (6:15pm EDT) on Sunday, May 26, 2019.

European Elections 2019:
source: europarl.europa.eu
See also:
The Brexit Party (UK):

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2019-05-25

Tech Review | The Future of Facial Recognition AI Software (video)

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Tech Review (TR 2019-05-25)--Domain Mondo's weekly review of tech investing news: Features • 1) The Future of Facial Recognition AI Software, 2) How Amazon Is Fighting Rakuten For E-Commerce In Japan, 3) Investing: The Week & Investor Notes: China running out of runway, 4) ICYMI Tech News: Twitter, Amazon, Google, IBM, Red Hat, Huawei, Facebook, T-Mobile, Spacelink, and more.

1) The Future of Facial Recognition AI Software

San Francisco is the first American city to ban facial recognition software used by police and other agencies. Bloomberg QuickTake explains why the technology's advance is so alarming to regulators, the public, and even the people developing it. Bloomberg.com video above published May 16, 2019.

2) How Amazon Is Fighting Rakuten For E-Commerce In Japan

Amazon is involved in around half of all e-commerce transactions in the United States, but in Japan it faces competition from Rakuten (rakuten.com). The Japanese e-commerce giant has a loyalty program and a suite of products including its own credit card, online bank and streaming services. In recent years, Amazon’s superior logistics capabilities and focus on price have allowed the company to capture greater market share. This video shows how the two e-commerce giants are borrowing the most successful parts of each other’s models as they look to the future. CNBC.com video above published Apr 30, 2019.

3) Investing
graphic: "INVESTING"  ©2017 DomainMondo.com
The Week: NASDAQ Composite -2.3% | S&P 500 Index -1.2% | DJIA -0.7%
"The yield on the S&P 500 is getting close to Treasuries." 
Investor Notes: China running out of runway in U.S. Trade War.

China is running out of options to hit back at the United States without hurting its own interests, as Washington intensifies pressure on Beijing to correct trade imbalances in a challenge to China’s state-led economic model. Even Lloyd Blankfein is now a Trade Warrior.

Trade war can seriously derail China economic development, according to Mohamed El-Erian--China could slip into a middle income trap if trade war persists, but by ending the trade war,  El-Erian believes China could regain its economic momentum--scmp.com. Why an economic war with the US blows China up--zerohedge.com.
"The US is willing to take a short-term hit in the form of higher consumer prices, and welcome inflation, from Chinese imports until global supply chains re-adjust and new domestic and international lines open, knowing the long-term damage is limited. Meanwhile, the hit to China is long-term and directly on production, thus right across the economy right at the most difficult phase of economic transition. Chinese economists are talking about a 1-2% hit to GDP. I suspect much more plus increased domestic social and political tension. Xi is in more trouble than we think."--Bill Blain 
Eurozone banking at risk of dangerous fragmentation, ECB warns. Euro hits 20, but will it make 30?--dw.com. French Incomes Are Below America's Poorest States... And The Protesters in France Know It.

Brexit: Watch the European election results, particularly from the UK, to be released late Sunday May 26. See also: Why Freedom From Brussels' Tyranny Is Worth A Small Loss Of British GDP, and UK Prime Minister Theresa May resigns after having failed to deliver Brexit. Conservative Party successor in place by late July, without need for a general election, is likely to be Boris Johnson who has indicated that leaving the EU without a deal ("no deal Brexit") is a possibility.

Beware M&A:
  • Occidental's Big Mistake: Overpaying For Resources In An Age Of Energy Abundance--seekingalpha.com.
  • Bayer's Acquisition Of Monsanto May Have Sown The Seeds Of Bayer's Own Destruction--seekingalpha.com.

4) ICYMI Tech News:
graphic: "ICYMI Tech News" ©2017 DomainMondo.com
How Twitter Became Ubiquitous in Japan--a look at Twitter in Japan, its second-largest market, raking in $136M in Q1 revenue, where the service has mass appeal and many users have multiple accounts--bloomberg.com.

E-commerce sales in the U.S., over the past five years have doubled. On a seasonally adjusted basis, e-commerce sales in Q1 2019 hit an all-time high of $137.7 billion. "E-commerce sales" include sales by the online operations of brick-and-mortar retailers Walmart, Home Depot, BestBuy, and Macy’s, which operate the fourth through seventh largest e-commerce websites in the U.S., behind Amazon, eBay, and Apple.--wolfstreet.com.

Out of 50 of the largest companies in the U.S., the highest median employee pay in 2018 was at Texas-based oil giants not Silicon Valley tech giants.--bizjournals.com.

Google has had a huge run, and with financial and potential political challenges looming, now looks like a good time to sell $GOOG, $GOOGL--SeekingAlpha.com.

IBM and Red Hat after IBM's acquisition of Red Hat is complete later this year--zdnet.com.

By 2023, Uber Eats may own 25% of the global food delivery industry worth $191B, but both DoorDash and GrubHub make more sales, and DoorDash is growing fastest--fortune.com.

Huawei: Wi-Fi Alliance, semiconductor standards body JEDEC, and SD Association suspend Huawei's membership, which will limit Huawei's future ability to shape these standards. U.S. Tech Companies Begin to Cut Off Huawei. Experts are skeptical of Huawei's claims that it can ensure a steady components supply without U.S. tech, saying Huawei will struggle to replace chips, lasers, other parts. For example, Huawei relies on chip design software from the American global "gold standard" market leaders Cadence Design Systems Inc. (NASDAQ: CDNS), and Synopsys Inc. (NASDAQ: SNPS), used by manufacturers worldwide.

Note also: Google reportedly suspended business with Huawei that requires the transfer of hardware and software products except those covered by open source licenses.

China's tech transfer problem is growing, says EU business group. European firms are reportedly increasingly required to transfer technology in China in order to gain access to the Chinese market.

Facebook has apparently formed a new financial tech firm, Libra Networks LLC, according to a filing on the Geneva Commercial Register.

T-Mobile (63% owned by Deutsche Telekom AG) got a big boost from FCC on the Sprint deal.

Google Chrome browser pushes "SameSite" cookie security overhaul--an IETF standard called SameSite (RFC6265bis)--which Google and Mozilla have promoted since 2016 and Google has announced it will start pushing more aggressively in Chrome from version 76 this July--nakedsecurity.sophos.com.

SpaceX launches first satellites for Musk's Starlink internet service (domain: starlink.com). Competitors include Airbus SE-backed OneWeb which launched satellites in February, LeoSat Enterprises (domain: leosat.com), and Canada’s Telesat (domain: telesat.com).

Smart Redesign: in a letter to employees, Ford CEO Jim Hackett confirmed:
"... we will have eliminated about 7,000 salaried positions or about 10% of our global salaried workforce. This includes both voluntary and involuntary separations over the past year. Within that total, and consistent with our goal to reduce bureaucracy, we will have reduced management structure by close to 20%. This will result in annual savings of about $600 million ..."
Personal tech:
  • 10 best cheap phones: for summer travel, leave your $1,000 iPhone or Galaxy at home. Editor's note: my 'short list'--LG K30 – 16 GB – Unlocked (AT&T/T-Mobile/Verizon) ($139.99) or  Unihertz Jelly Pro The Smallest 4G Smartphone in The World, Android 7.0 Nougat Unlocked Smart Phone with 2GB RAM and 16GB ROM ($124.99). Almost everyone could use a second "backup phone" / "emergency phone" / "vacation phone" anyway.
  • Personal security: hacker steals $1 million using just a phone number--bitcoinist.com.

-- John Poole, Editor, Domain Mondo  

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