TECHNOLOGY
ByteDance reports loss
ByteDance Ltd (字節跳動), the parent of hit short video app TikTok, swung to an operating loss of US$2.1 billion last year, compared with an operating profit of US$684 million in 2019, according to a memo to employees yesterday. That was due in part to higher expenses incurred from share-based compensation to workers, a person familiar with the matter said, while expenses also soared as ByteDance boosted spending to acquire users and support its content creators. It earned gross profit of US$19 billion on revenue of US$34.3 billion, which more than doubled.
ELECTRONICS
Cook speaks out on EU rules
Apple Inc chief executive officer Tim Cook on Wednesday took aim at proposed European rules aimed at curbing the power of US technology giants, saying they could pose security and privacy risks to iPhones. Cook, in his first public comments about the digital markets act proposed by European Commission Executive Vice President Margrethe Vestager, said that parts were good, but others were not. He said that he feared the draft rules would lead to more customers installing apps that do not come through Apple’s App Store, or “side-loading.”
INDONESIA
Bank leaves rate unchanged
Bank Indonesia yesterday left its benchmark interest rate unchanged as a resurgence in COVID-19 cases risks delaying recovery in Southeast Asia’s largest economy. The central bank kept the seven-day reverse repurchase rate at 3.5 percent, as expected by all 30 economists surveyed by Bloomberg. It is the fourth straight month the rate has stayed at its record low, and Bank Indonesia previously has signaled it could remain at that level for the rest of the year.
UNITED STATES
Yellen sees decoupling
Secretary of the Treasury Janet Yellen expects the country to decouple in some areas from China to protect its national security, but she would worry about a complete severing of ties on the technological front, she said on Wednesday. “We are looking at full range of tools that we have to push back and to redress practices that harm us, [and our] national security and our broader economic interests,” Yellen told the Senate Finance Committee, citing curbs on potentially harmful Chinese investments in the US.
TECHNOLOGY
Spotify launches new app
Spotify Ltd on Wednesday launched a live audio app called Greenroom, the Swedish online music streaming giant’s answer to the popular platform Clubhouse. Greenroom allows users to join live discussions or to host their own. Spotify launched Greenroom after acquiring Betty Labs, the company behind the popular sports-focused audio platform Locker Room. Other tech giants have also jumped into the live audio sector with Twitter Inc launching Spaces in December last year and Facebook Inc hosting Live Audio Rooms.
INSURANCE
FWD seeks IPO
FWD (富衛), the acquisitive Asian insurer backed by billionaire Richard Li (李澤楷), has filed confidentially for a US initial public offering (IPO). The company has confidentially submitted a draft registration with the US Securities and Exchange Commission for the planned share sale, according to a statement yesterday. FWD is considering raising about US$2 billion in the US share sale, people familiar with the matter said. A listing could value the insurer at about US$13 billion, they said.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Meta Platforms Inc offered US$100 million bonuses to OpenAI employees in an unsuccessful bid to poach the ChatGPT maker’s talent and strengthen its own generative artificial intelligence (AI) teams, OpenAI CEO Sam Altman has said. Facebook’s parent company — a competitor of OpenAI — also offered “giant” annual salaries exceeding US$100 million to OpenAI staffers, Altman said in an interview on the Uncapped with Jack Altman podcast released on Tuesday. “It is crazy,” Sam Altman told his brother Jack in the interview. “I’m really happy that at least so far none of our best people have decided to take them
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
PLANS: MSI is also planning to upgrade its service center in the Netherlands Micro-Star International Co (MSI, 微星) yesterday said it plans to set up a server assembly line at its Poland service center this year at the earliest. The computer and peripherals manufacturer expects that the new server assembly line would shorten transportation times in shipments to European countries, a company spokesperson told the Taipei Times by telephone. MSI manufactures motherboards, graphics cards, notebook computers, servers, optical storage devices and communication devices. The company operates plants in Taiwan and China, and runs a global network of service centers. The company is also considering upgrading its service center in the Netherlands into a
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