TECHNOLOGY
Square sells delivery app
Square Inc is selling its Caviar food-delivery app to DoorDash Inc for US$410 million, as the money-losing payments company searches for profits. The sale was on Thursday disclosed as part of Square’s quarterly financial report, which failed to impress investors. The stock fell as much as 9 percent in extended trading. The San Francisco-based company gave a third-quarter profit forecast of US$0.18 to US$0.20 a share, trailing the average analyst estimate of US$0.22. It said adjusted revenue in the period would be US$590 million to US$600 million, compared with estimates of US$599.5 million, according to data compiled by Bloomberg. The Caviar deal is a boost for DoorDash, already the most popular food delivery app in the US.
TELECOMS
Texas joins takeover fight
Texas has joined more than a dozen US states that are suing to stop T-Mobile’s US$26.5 billion takeover of rival cellphone company Sprint Corp, arguing that the deal is bad for consumers, because it would reduce competition. Texas’ attorney general is the first Republican to join the group, which now consists of 14 states and the District of Columbia. California, New York and Texas are leading the states’ case. The US Department of Justice approved the deal last week alongside five Republican state attorneys general who were not involved in the states’ case. The federal government’s conditions would make satellite-TV company Dish Network Corp a new US wireless provider. Critics worry that the deal would still lead to higher prices and fewer consumer perks, because Dish would be a weaker competitor than Sprint currently is.
ELECTRONICS
GoPro ups revenue forecast
GoPro Inc on Thursday raised its revenue forecast for this year, as the action camera maker bets on new releases later this year and helping shares reverse course to trade up 5 percent. The company on a post-earnings call said that it expected full-year revenue to grow 9 to 12 percent, up from prior forecast of a 7 to 10 percent rise. GoPro last year launched the Hero 7 White, Hero 7 Silver and Hero 7 Black as part of its holiday lineup, which helped the company report its first profit in five quarters. Revenue rose 3 percent to US$292 million, while analysts’ on average had estimated US$302.3 million, according to Institutional Brokers’ Estimate System data from Refinitiv. Net loss narrowed to US$11 million, or US$0.08 per share, from US$37.3 million, or US$0.27 per share, a year earlier.
BANKING
Investors dump RBS shares
State-rescued Royal Bank of Scotland (RBS) boosted profits in the first half of this year, but a warning on future profitability saw investors dump its shares yesterday. The bank said net profit soared to ￡1.3 billion (US$1.6 billion) from ￡96 million in the same period last year, when it was forced to book part of the massive US$4.9 billion in fines paid for its role in the US sub-prime mortgage crisis. At the same time RBS managed to increase revenues by 20 percent in the second quarter to ￡4.1 billion, and increased lending despite growing uncertainty about Brexit. “Given the uncertain and competitive environment, we are focused on the areas we can control; costs are down, capital and liquidity are strong and we continue to grow lending to the real economy,” RBS chief executive Ross McEwan said. The bank announced a special dividend for shareholders worth ￡1.7 billion, but it also said that it would not meet next year’s profitability target.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
Her white-gloved, waistcoated uniform impeccable, 22-year-old Hazuki Okuno boards a bullet train replica to rehearse the strict protocols behind the smooth operation of a Japanese institution turning 60 Tuesday. High-speed Shinkansen trains began running between Tokyo and Osaka on Oct. 1, 1964, heralding a new era for rail travel as Japan grew into an economic superpower after World War II. The service remains integral to the nation’s economy and way of life — so keeping it dazzlingly clean, punctual and accident-free is a serious job. At a 10-story, state-of-the-art staff training center, Okuno shouted from the window and signaled to imaginary colleagues, keeping
Arm Holdings PLC approached Intel Corp about potentially buying the ailing chipmaker’s product division, only to be told that the business is not for sale, according to a source with direct knowledge of the matter. In the high-level inquiry, Arm did not express interest in Intel’s manufacturing operations, said the source, who asked not to be identified because the discussions were private. Intel has two main units: A product group that sells chips for personal computers, servers and networking equipment, and another that operates its factories. Representatives for Arm and Intel declined to comment. Intel, once the world’s largest chipmaker, has become the
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