The UK’s pledge of £1bn ($1.4bn) to boost its semiconductor industry over the next decade has been criticised as “insignificant” by industry figures, compared to the $50bn promised by the US and €43bn pledged by the EU. The boost is intended to expand the domestic industry, protect national security and reduce the risk of supply chain disruption. However, the UK currently has to import critical silicon chips from Taiwan. Simon Thomas of UK start-up Paragraf described the announcement as “quite frankly flaccid” and Garner consultant Gaurav Gupta said it would not create a UK company capable of competing with major chip producers.
Dubai could be home to a 274m replica of the moon atop a 30 metre building, forming part of a $5bn real estate project named MOON. The project includes a 4,000-room hotel, a 10,000-capacity arena and a "lunar colony". Artist renderings have shown the moon at the Burj Khalifa, the world's tallest building, which stands at 828m. Dubai has significantly increased rents and residential sales in recent years and has launched "selling out on the spot" products. The MOON also includes space for a possible casino. Gambling remains illegal in the UAE, but major brands like Caesar's Palace already exist or hope to build in Dubai, including Wynn Resorts' $3.9 resort due to open in Ras al-Khaimah in 2027.
Top advertising agency GroupM has upgraded Twitter from "high risk" to "cautiously optimistic" following the appointment of Linda Yaccarino as CEO, according to the Financial Times. The ad firm had labelled the social media site high-risk after Elon Musk's takeover in 2016, citing issues such as a wave of impersonations and the departure of Twitter executives. Musk subsequently laid off half the workforce to curb costs. However, as the amount of harmful content on the site subsided and Musk replaced senior heads, GroupM reconsidered and placed Twitter back on its approved advertising platforms list.
The US city of Highland Park, surrounding Detroit, could face municipal bankruptcy as it owes about $20m to a regional water service, and has few resources with which to build. In its auto baron heyday, over 50,000 people lived in Highland Park in elegant homes similar to those in Detroit. However, after the auto industries moved away to nearby Dearborn, the population dropped and “abysmal” levels of poverty and abandonment took over as jobs and families moved. The water bill dates back to the 1990s, and Highland has not paid for sewer services since April 2021, nor less than 1% of water service charges since 2012. While the state treasurer’s office is reviewing Highland Park’s request for a financial review, municipal bankruptcy might be a “Band-Aid” solution, said Alan Mallach, author of “Smaller Cities in a Shrinking World: Learning to Thrive Without Growth.”
As Beijing's influence grows, Chinese leader Xi Jinping has pledged to build more railway and bolster China's oil and gas footing in Central Asia. Speaking at a summit attended by leaders from Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, Xi said there was a need to "expand economic and trade ties". The move follows China's ongoing creation of trade-related infrastructure in the former Soviet states under its Belt and Road Initiative. The projects have alarmed Russia, which views the region as its sphere of influence, but officials from Central Asia see China as an important market.
Five TikTok users in the US have filed a lawsuit against the state of Montana, claiming that the ban on the app is unconstitutional and suppresses free speech. Montana’s governor recently passed a law prohibiting people from downloading TikTok onto their personal phones, claiming that it was necessary to protect citizens’ personal data from Chinese data collection efforts. The lawsuit is significant for the wider debate about the app’s right to operate in the US, given that it marks the first time a Western territory has banned TikTok for personal use.
Twitter has become "low risk" for brands thanks to the appointment of Linda Yaccarino as its new chief executive, according to GroupM, part of global advertising firm WPP. The agency had previously warned brands against advertising on the platform after Tesla boss Elon Musk's £35bn ($44bn) takeover last year. This turmoil led 16 of the top 25 US Twitter advertisers to withdraw advertising completely in Q1 2023, according to data from Sensor Tower. Outgoing GroupM chairman Sir Martin Sorrell welcomed Yaccarino's appointment, calling her "very effective".
India's Motherson Sumi Wiring reports near three-fold surge in Q4 profit
Reuters
23-05-19 09:57
Indian automotive components manufacturer Motherson Sumi reported a three-fold jump in quarterly profits thanks to a recovery in the automotive industry and improved operational efficiencies. It also cited festival demand and buying ahead of the introduction of new fuel emission regulations as factors in driving sales. The company, of which Sumitomo Wiring Systems holds a 25% stake, makes wiring harnesses and other electrical wires. Domestic retail vehicle sales in March rose 14% year on year to 2 million, according to the Federation of Automobile Dealers Associations.
The UK government has announced a £1bn investment in the country's semiconductor industry over the next decade as part of an effort to reduce the reliance on Asian production of computer chips. The strategy is designed to boost the domestic chip industry, safeguard British national security and alleviate supply chain disruption, according to Prime Minister Rishi Sunak. The government funding will focus on research and development, as well as design, intellectual property and cutting-edge compound semiconductors. The first £200m will be distributed between 2023 and 2025.
Bank of Japan Governor Kazuo Ueda has reiterated that the bank is committed to ultra-loose monetary policy to hold off inflation while other countries look to tighter policies. Rising inflation in Japan is due to cost-push factors rather than strong domestic demand, Ueda said. Responding to this rise in costs with tighter monetary policy is not advised, for fear of hurting the domestic economy. The Bank of Japan also faces the challenge of waiting to see whether recent wage hikes will be durable.
Swiss entrepreneur Marco Garzetti, the founder of Taure Invest, will make a bid to invest CHF65m ($72m) in GAM to avoid London-listed asset management firm Liontrust's acquisition of the Swiss fund management firm. In an open letter to GAM shareholders, Garzetti said he disagreed with the board's decision that the all-share offer, which values the group at £96m ($135m), was in the best interests of all stakeholders. "I am convinced GAM will continue to have many advantages as an independent Swiss asset management company in the future," he wrote. Garzetti's offer marks another twist in GAM's quest to secure its future and could impact on the proposed Liontrust deal, which is planning to sell off GAM's fund services arm to create an asset manager worth £53bn.
The COVID-19 pandemic has led many people to rethink their careers, with some choosing to break free from paths they long resented or to establish small businesses. Others left city locations or industries hit by the pandemic or made changes to achieve better work-life balance. While some simply carried on regardless, the pandemic gave others the chance to make long-desired career transitions. Events that break people from their normal patterns can have a profound impact on thinking, and the COVID-19 pandemic has been an event of unprecedented magnitude in this regard.
Russian Prime Minister, Mikhail Mishustin, is set to visit China for two days, where he will meet with President Xi Jinping, as both nations are increasing their diplomatic efforts to hold talks over the Ukraine war. The visit will also include a stop in Shanghai, where Mishustin will attend a bilateral business forum. The Russian delegation will include Herman Gref, CEO of Russia’s state-owned bank Sberbank, and Mikhail Oseevsky, CEO of telecoms provider Rostelecom, both of whom have been sanctioned by Western countries over Russia’s invasion of Ukraine.
Business owners in Downtown Eastside say tent removals did little to improve sense of safety
CBC
23-05-19 14:00
The removal of tent encampments in Vancouver's Downtown Eastside (DTES) neighbourhood has done little to alleviate the mental health and safety concerns of local business owners, according to some entrepreneurs. They called for substantive changes to the area, demanding that authorities act faster to help citizens with drug use and mental health issues. The area's high poverty rate was compounded by a shortage of primary care doctors and increasing toxic substances, including drugs, according to former provincial health officer Dr. Perry Kendall. Greater regulation of drug use is needed, but this would represent a "big political leap," he said. A neighbourhood resident added that addictions and sleep deprivation raise behavioural problems.
Direct flights between Russia and Georgia have resumed despite protests and opposition from the South Caucasus country's president. Demonstrators gathered at Tbilisi airport to voice anger over what they described as the Georgian government’s pro-Russia course, while the country’s pro-Western leader, Salome Zourabichvili, tweeted her opposition. The Kremlin lifted its four-year-old flight ban and abolished visas for Georgian nationals in a surprise move from President Vladimir Putin, following a show of strength in a military parade with leaders from across Central Asia and the South Caucasus.
Srichand Hinduja died at 87 having led a business empire that grew from a modest trading concern in India and Iran in the middle of the 20th century to a sprawling global network with interests spanning carmaking, IT and oil. Last year, the brothers were Britain’s richest family with a £28bn fortune. Hinduja's name is synonymous with a passport row involving one of the architects of New Labour, Peter Mandelson. He was the biggest spender in the Hinduja clan and threw lavish parties for the rich and powerful. However, before dementia took hold, he was also a deeply religious man who did not touch alcohol or meat and prayed in a Hindu temple at least once a day.
Network Rail is to spend £1bn to make the any adaptations to the UK rail system needed to mitigate the impact of climate change. Measures to shore up embankments and improve drainage will be among the weather resilience initiatives supported by the funds, more than double the £500m spent on such measures over the past five years. The company will also allocate £600m to make the rail network more environmentally friendly, for example by reducing carbon emissions and enhancing biodiversity around tracks. However, the company cautioned that spent carefully over the five year period to 2029, areas of infrastructure including tracks will deteriorate. The firm will continue to prioritise safety-critical areas such as signalling.
The announcement comes after the UK government pledged £44.1bn for rail infrastructure for 2024 to 2029. The amount is an 8.1% increase on the current period’s budget, but represents a smaller-than-inflation rise. The rail system has faced significant challenges from increasingly frequent and severe flooding and the lessening of embankments’ stability due to drought. A report by regulator the Office of Rail and Road said Network Rail was behind on inspections of key infrastructure such as bridges, meaning safety and reliability are open to risk.
UK fintech giant, Revolut, has requested meetings with UK government ministers over stalled payments to the company. The firm has been seeking a UK banking licence for over two years, with reports that an application had been turned down by the Prudential Regulation Authority (PRA) last week. The Bank of England informed the government of its likely decision on the licence. The PRA has not yet officially told Revolut of its decision, with executives expected to meet Treasury officials to discuss economic growth. Founders of other fintech start-ups claim that the PRA is overly cautious about granting licences.
Tesco's chairman John Allan will resign next month after allegations over his behavior risking becoming a "distraction." The decision follows several allegations over Allan's behaviour made in recent weeks, including accusations of inappropriate behaviour on four separate occasions, including an incident in which he was alleged to have touched the bottom of a senior Tesco employee; he was also accused of making inappropriate remarks to two other women on separate occasions between 2019 and 2022, and touching another woman's bottom. Allan denied all but one of the allegations, admitting only to having made comments about a worker's appearance in 2019, apologising for the action.
With JPMorgan's Investor Day taking place on Monday, analysts will seek more details about the bank's acquisition of First Republic Bank, as well as Jamie Dimon's succession plan following James Gorman's announcement that he will step down as Morgan Stanley CEO in the next 12 months. The investor day will also provide insight on the bank's plans to integrate First Republic's business into the largest bank in the US, as well as reports on the bank's performance via comments on the economy, growth, deposit growth, strategic opportunities, loan loss provisions and expenses.
