MICROCHIPS
Vodafone to design its own
Vodafone Group PLC said yesterday it would work with Intel Corp and other silicon vendors on designing its own chip architecture to drive innovation and efficiency in nascent OpenRAN network technology. The initiative will be based at Vodafone’s digital innovation and R&D center in Malaga, Spain, which opened yesterday. Fifty people dedicated to OpenRAN will join 650 software engineers, architects and technicians in the Spanish city, where the British company is investing 225 million euros (US$251.4 million) over five years. Vodafone’s director of network architecture Santiago Tenorio said OpenRAN would enable the mobile operator to quickly add new digital services and to optimize networks using artificial intelligence.
EDUCATION
Pearson to acquire Credly
Education group Pearson has agreed to buy the certification company Credly to expand its offering to businesses looking to train and retain workers at a time of tight labor markets and rapid technological innovation. The global learning company said yesterday it had agreed to buy Credly in a deal that valued it at US$200 million, in its latest move to respond to the demand for workforce training in areas like IT. Pearson already owned 20 percent. The UK-listed firm, a major supplier of courseware and assessments in schools and colleges in the US, Britain and around the world, will have around 1,000 enterprise clients when it adds Credly to its Workforce Skills division.
ENERGY
Shell ditches two-tier stock
Shell PLC’s two-tier share structure came to an end at the weekend, bringing a close to its historic setup that the company increasingly regarded as a financial burden. Late last year, Shell’s investors and board agreed to overhaul the company’s legal and tax structure, losing “Royal Dutch” from its name, relocating its tax residence to the UK and moving a dozen top executives to London. The plan included consolidating all the shares in one country, making it easier to buy and sell assets as well as return cash to stockholders. Shell’s shares were to start dealings on Euronext Amsterdam and the London Stock Exchange yesterday.
INVESTMENT
Wood buys more Robinhood
Cathie Wood stepped up buying of Robinhood Markets Inc shares as the online broker’s stock dropped to a record low following earnings that fell short of Wall Street expectations. Wood’s firm ARK Investment Management bought nearly 2.44 million Robinhood shares on Friday, the most since its stock market debut in July last year, according to trading data from Ark compiled by Bloomberg. However, Robinhood still trades 67 percent below its initial public offering price and ranks among the worst high-profile global stock market debuts during the COVID-19 pandemic, joining the likes of China’s Didi Global Inc (滴滴) and London’s THG PLC.
SPAIN
Inflation data disappoint
Spanish inflation slowed less than expected last month, highlighting the challenge for policy makers as soaring energy prices weigh on consumers. Consumer prices rose 6.1 percent from a year earlier, down from a 30-year high of 6.6 percent in December, but much stronger than the 5.5 percent forecast by economists in a Bloomberg survey. Spanish power prices have been surging since mid-June, having consistently broken new records, driven largely by natural gas prices, leading to regulatory changes and tax breaks from the government for consumers.
PUBLISHING
Manga firms sue Cloudflare
Four major Japanese manga publishers said yesterday they will sue a US company accused of hosting servers for a piracy site, in the latest offensive against illegal copies of their graphic novels. The four publishers — Kodansha Ltd, Shueisha Inc, Shogakukan Inc and Kadokawa Corp — accuse Web infrastructure company Cloudflare Inc of copyright infringement for its role in hosting sites that distribute pirated copies of manga titles. They will seek a combined ￥400 million (US$3.5 million) in damages, according to a source with knowledge of the suit.
SOFTWARE
Elliott, Vista near Citrix deal
Elliott Investment Management and Vista Equity Partners are nearing an agreement to acquire software maker Citrix Systems Inc for around US$13 billion, people familiar with the matter said. The investment firms are close to a deal to buy Citrix for about US$104 per share, the people said. The transaction could be announced as soon as yesterday, the people said. Citrix makes software that workers use to log on to their corporate programs virtually, a category of product extensively relied upon during the pandemic as businesses sought quick ways to keep remote workers connected to central operations. Many are now planning permanent hybrid setups for home and office working, which is expected to grow the market for tools that help make this seamless.
INVESTMENT
Dealmakers extend top run
Australian dealmakers have shrugged off the traditional summer lull, signing deals ahead of the Australia Day public holiday in the best start to a year since 2017. Transactions announced through Jan. 26, which conventionally marks the end of the nation’s summer break, totaled US$4.7 billion, according to data compiled by Bloomberg. That is the highest volume since 2017, when US$6 billion worth of deals were sealed. The strong start continues the mergers and acquisitions frenzy that broke annual records in 2021, when Australian companies led the list of Asia’s biggest deals. The biggest deal during the period is Glencore PLC unit Viterra’s acquisition of Gavilon Group’s grains business for US$1.13 billion plus working capital.
OIL
OPEC likely to raise output
The world’s top oil-producing countries are to meet tomorrow to discuss a further increase in output, while crude prices have reached seven-year highs rattled by geopolitical tensions. Part of their regular meetings since the COVID-19 pandemic shook markets, the 13 members of OPEC and their 10 allies convene by videoconference to set output. Many analysts expect the grouping, including Saudi Arabia and Russia, to decide to continue to boost output by 400,000 barrels per day next month.
WATCHMAKERS
Hublot Big Bang pricier
Hublot’s Big Bang watch, worn by Usain Bolt and Jay-Z, will soon come with an even bigger price tag. The Swiss watchmaker is boosting prices for all of its timepieces, Hublot chief executive officer Ricardo Guadalupe said in an interview. Rising raw material costs for gold and diamonds will lead to price increases of 3 percent to 4 percent in April or May, he said. Hublot’s products on average sell for about 20,000 Swiss francs (US$21,500). “Almost all our suppliers are increasing prices,” Guadalupe said, noting that costs for steel and titanium are also increasing. Diamond suppliers have raised prices by 10 to 15 percent, he said.
STEEP DECLINE: Yesterday’s drop was the third-steepest in its history, the steepest being Monday’s drop in the wake of the tariff announcement on Wednesday last week Taiwanese stocks continued their heavy sell-off yesterday, as concerns over US tariffs and unwinding of leveraged bets weighed on the market. The benchmark TAIEX plunged 1,068.19 points, or 5.79 percent, to 17,391.76, notching the biggest drop among Asian peers as it hit a 15-month low. The decline came even after the government on late Tuesday authorized the NT$500 billion (US$15.2 billion) National Stabilization Fund (國安基金) to step in to buoy the market amid investors’ worries over tariffs imposed by US President Donald Trump. Yesterday’s decline was the third-steepest in its history, trailing only the declines of 2,065.87 points on Monday and
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
TARIFF CONCERNS: The chipmaker cited global uncertainty from US tariffs and a weakening economic outlook, but said its Singapore expansion remains on track Vanguard International Semiconductor Corp (世界先進), a foundry service provider specializing in producing power management and display driver chips, yesterday withdrew its full-year revenue projection of moderate growth for this year, as escalating US tariff tensions raised uncertainty and concern about a potential economic recession. The Hsinchu-based chipmaker in February said revenues this year would grow mildly from last year based on improving supply chain inventory levels and market demand. At the time, it also anticipated gradual quarter revenue growth. However, the US’ sweeping tariff policy has upended the industry’s supply chains and weakened economic prospects for the world economy, it said. “Now
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