LVMH to buy Off-White stake
French luxury conglomerate LVMH Moet Hennessy Louis Vuitton SE yesterday said that it intends to take a majority stake in the luxury streetwear label Off-White created by Virgil Abloh, the first black American creative director of a top French fashion house. LVMH is to take a 60 percent stake in Off-White for an undisclosed sum, a statement said. Abloh is to retain 40 percent and remain creative director for the men’s collections of LVMH’s Louis Vuitton fashion house.
IBM sales beat estimates
IBM Corp on Monday reported second-quarter revenue that beat analysts’ estimates, as a recovery in client spending powered strong growth in its cloud and consulting businesses. Sales at IBM’s cloud business rose 13 percent to US$7 billion. The company’s net income fell to US$1.33 billion, or US$1.47 per share, in the quarter that ended on June 30, from US$1.36 billion, or US$1.52 per share, a year earlier. Total revenue rose 3 percent to US$18.75 billion, it said.
Tesla China registrations up
Tesla Inc saw registrations of its Chinese-made vehicles climb again last month as quarter-end promotions helped offset a string of negative press around customer complaints and quality concerns. Registrations of Model 3 sedans and Model Y sports utility vehicles made at Tesla’s Shanghai factory totaled 28,508 units last month, a 29 percent increase from May and more than double the figure in April, data from China Automotive Information Net showed. Model 3 registrations rebounded to 16,995, while Model Y registrations hit 11,513, a 10 percent drop from May.
Qatar eyes cargo planes
Qatar Airways CEO Akbar al-Baker said he is ready to order wide-body freighter planes from Airbus SE or Boeing Co within a month or two if a new model is made available. The Persian Gulf carrier could place a “large customer order” for an A350 freighter planned by European manufacturer Airbus or a new 777F from its US rival before the end of the third quarter, al-Baker told the FlightPlan III Webinar. Al-Baker has lobbied for the aircraft before, but neither plane maker has committed to making a freighter version of the passenger jumbo jets.
Swiggy closes funding round
Food delivery start-up Swiggy yesterday announced that it closed a US$1.25 billion funding round led by Softbank Vision Fund 2 and Prosus, just days ahead of rival Zomato Ltd’s listing. New investors include Qatar Investment Authority, Falcon Edge Capital and Goldman Sachs, while existing backers Accel Partners and Wellington Management also participated, Swiggy said in a statement. The fundraising was heavily oversubscribed due to strong interest from investors, it said, without providing details or its market value.
GlobalFoundries IPO on
GlobalFoundries Inc, a chipmaker owned by an investment arm of the Abu Dhabi government, is sticking with its plan for an initial public offering (IPO) next year, CEO Tom Caulfield said. Reports that GlobalFoundries is the subject of a takeover bid by Intel Corp are speculation, he said. “There’s nothing there in that discussion,” Caulfield told Bloomberg Television on Monday. Because the chipmaker is moving toward a share sale, “you can expect a lot of speculation to take place,” he said.
An index launched a year ago to give investors greater exposure to China’s Internet giants is now the world’s worst-performing major technology gauge. The Hang Seng Tech Index has been on a roller-coaster ride in the past 12 months. The gauge, which marks its first anniversary on Tuesday, was up 59 percent at its February peak, but has since seen more than US$551 billion in market value wiped out amid Beijing’s clampdown on the sector. That has reduced its gain to nearly 6 percent, compared with more than 40 percent for the MSCI World Information Technology Index and the NASDAQ-100 Index. The
EDUCATION AS WELFARE: New regulations threaten to upend the lucrative private education sector that teaches the public school curriculum to paying families China unveiled a sweeping overhaul of its US$100 billion education tech sector, banning companies that teach the school curriculum from earning profit, raising capital or going public. Beijing on Saturday published an array of regulations that together threaten to overturn the sector and jeopardize billions of dollars in foreign investment. Companies that teach school subjects can no longer accept overseas investment, which could include capital from the offshore registered entities of Chinese firms, according to a notice released by the Chinese State Council. Those in violation of that rule must take steps to rectify the situation, the country’s most powerful administrative
Facebook Inc on Wednesday reported its profit doubled in the second quarter as digital advertising surged, but warned of cooler growth in the months ahead in an update that sent its shares sinking. Profit rose to US$10.4 billion on revenue of US$29 billion, a 56 percent increase from last year, mainly from an increase in ad revenue, Facebook said. The number of people using the social network monthly climbed to 2.9 billion, a year-on-year gain of 7 percent, while about 3.5 billion people used at least one of the company’s apps, including Instagram, WhatsApp and Messenger. “We had a strong quarter, as we
‘IN ITS INFANCY’: The company’s 12-inch fab in Arizona is to be its first major overseas chip manufacturing site, while the fab in Japan would be its second, if it is constructed Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is evaluating the feasibility of constructing a semiconductor fabrication plant in Germany as it continues to expand overseas, it said yesterday. A shareholder at the contract chipmaker’s annual general meeting in Hsinchu City yesterday asked about the possibility following media reports earlier this month that TSMC was approached by the German government about building a chip fab in the country, as Europe joins the US and China in establishing local chip supplies in a bid to avert future chip shortages. “About the German fab, we are seriously looking into it, but it is still in its