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.
CHIP CRUNCH: Apple’s woes show that even the king of the technology world is not immune from global shortages made worse by the COVID-19 pandemic Apple Inc is likely to slash its projected iPhone 13 production targets for this year by as many as 10 million units as prolonged chip shortages hit its flagship product, people with knowledge of the matter said. The company had expected to produce 90 million new iPhone models in the final three months of this year, but it is now telling manufacturing partners that the total would be lower because Broadcom Inc and Texas Instruments Inc are struggling to deliver enough components, the people said. Apple gets display parts from Texas Instruments, while Broadcom is its longtime supplier of wireless components. One Texas
Units of Intel Corp and Samsung Electronics Co are targeting to resume full operations of their Ho Chi Minh City plants by the end of next month, a move that could provide relief to global supply chains. Saigon Hi-Tech Park is helping its tenants, many of which are running at about 70 percent capacity, to operate fully next month, park deputy manager Le Bich Loan said in a phone interview. She did not elaborate on the steps the park is taking, particularly efforts at bringing back workers who fled to home provinces. The Ho Chi Minh City unit of Nidec Sankyo Corp,
EVA Airways Corp (長榮航空) and China Airlines Ltd (中華航空), the nation’s two major airlines, reported accelerated revenue growth in the third quarter compared with the previous two quarters, thanks to robust air cargo business. EVA Airways yesterday said sales for last quarter rose 40 percent year-on-year to NT$25.81 billion (US$917 million), compared with an increase of 25 percent in the second quarter and a fall of 35 percent in the first quarter. China Airlines said sales grew 39 percent to NT$34.6 billion in the third quarter, after gaining 10 percent in the second quarter and falling 14 percent in the first quarter. EVA
Hon Hai Precision Industry Co (鴻海精密) is embarking on a recruitment drive to hire 200,000 workers in Shenzhen, China, as it ramps up production of the new iPhone 13 series, Chinese business news outlet Eastmoney.com reported. Hon Hai is seeking to recruit those heading back to the city after China’s seven-day National Day holiday, which began on Oct. 1, to help churn out the estimated 100,000 iPhone 13s produced on the site each day, the report said. Following last month’s global release of the iPhone 13, Hon Hai entered its traditional peak season, and workers at its Chinese production sites are said