|Bid||287.05 x 0|
|Ask||287.50 x 0|
|Day's range||287.40 - 288.30|
|52-week range||133.80 - 288.30|
|Beta (5Y monthly)||1.24|
|PE ratio (TTM)||24.18|
|Forward dividend & yield||2.80 (0.97%)|
|Ex-dividend date||07 Nov 2019|
|1y target est||N/A|
Netflix is poised to report fourth-quarter results on Tuesday after market close, giving investors their first look at the company’s performance after the launch of new streaming services including Disney+ and Apple TV+.
Live sports programming might be the thing that sets NBCUniversal's new streaming service from its big competitors.
SAP's new co-CEO Christian Klein chats with Yahoo Finance at the 2020 World Economic Forum about the company's biggest priorities.
(Bloomberg) -- Apple Inc. suppliers plan to begin assembling a new low-cost iPhone in February, people familiar with the plan said, as the company looks to address a wider swath of the global smartphone market ahead of its 5G handsets later this year.The Cupertino, California-based company is expected to officially unveil the new phone as early as March, one person familiar with its road map said. The assembly work for the new handset will be split among Hon Hai Precision Industry, Pegatron Corp. and Wistron Corp., the people added.This will be the first lower-cost iPhone model since the iPhone SE. It will look similar to the iPhone 8 from 2017 and include a 4.7-inch screen, Bloomberg News has previously reported. The iPhone 8 is still on the market, currently selling for $449, whereas Apple sold the iPhone SE for $399 when that handset launched in 2016.The new phone is expected to have Touch ID built into the home button, reusing established Apple technology instead of opting for an in-display fingerprint sensor like most modern Android rivals. It will not have Apple’s Face ID biometric authentication, but it will feature the same processor as Apple’s current flagship device, the iPhone 11.An Apple spokeswoman declined to comment.Apple Expects IPhone Shipments to Return to Growth in 2020Apple’s more affordable iPhones have proven popular with consumers, including the latest iPhone 11, whose starting price was $50 lower than Apple’s typical pricing. Strong demand for iPhones has prompted Apple to ask Taiwan Semiconductor Manufacturing Co. to make more chips in the current quarter, according to two people familiar with the matter.Shares in Japan Display Inc., which supplies LCD screens for Apple’s lower-tier iPhones, closed 1.35% higher on Wednesday.Apple is planning a slew of new high-end iPhones for release later in 2020 that include 5G connectivity, faster processors, and new 3-D cameras on the back, Bloomberg News has reported.A cheaper offering may help Apple better compete in the most price-competitive and fast-growing emerging phone markets, particularly India. iPhones are still a hard sell in the country, which is overrun by aggressively-priced Android rivals coming in at less than $200. Still, Apple has shown a will to carve out a niche for itself and is eyeing locations for Apple stores within its borders.The U.S. tech juggernaut is hoping its handset shipments will return to growth this year, having set itself the goal of shipping more than 200 million units in 2020. The successor to the iPhone SE will play a significant role in that task.(Updates with Japan Display share price move)To contact the reporters on this story: Debby Wu in Taipei at firstname.lastname@example.org;Mark Gurman in Los Angeles at email@example.comTo contact the editors responsible for this story: Peter Elstrom at firstname.lastname@example.org, Vlad SavovFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Foxconn’s Terry Gou pledged to begin production at a long-delayed electronics plant in Wisconsin sometime this year, kick-starting a signature U.S. project that’s expected to play a pivotal role in expanding the billionaire’s manufacturing empire.The Foxconn founder said the factory will be up and running in 2020 and drive his company’s vision of manufacturing components for fifth-generation wireless and artificial intelligence applications, without elaborating. Gou, who failed in his bid to contest the Taiwanese presidential elections, added he will spend a lot of time in the U.S. this year and intends to send more employees over.“I hope many Hon Hai colleagues will go work in the U.S. to help America boost manufacturing and build a supply chain,” Gou told employees at his company’s new year’s party in Taipei.Foxconn’s Wisconsin complex, which President Donald Trump has hailed as a symbol of America’s manufacturing revival, has spurred controversy since its 2017 inception. The project once envisioned as a $10 billion investment on display panels has fallen far behind schedule and drawn fire from politicians because of lofty incentives Foxconn had wrung from local government. At one point, the Taiwanese company toyed with the idea of scaling back on the factory complex, along with a promise to bring 13,000 jobs to the Badger State.Foxconn, whose main listed vehicle is Apple Inc. iPhone assembler Hon Hai Precision Industry Co., has since kept its precise plans under wraps. Originally conceived as a factory to make liquid crystal displays for TVs, the company reduced the size and scope of the manufacturing center it committed to building and missed its maximum first-year hiring target by 82%. Wisconsin’s deal with Foxconn has also been politically fraught: Republican Governor Scott Walker, who helped strike the state’s partnership along with Trump, lost his reelection bid in 2018 in part because of the controversy surrounding the Foxconn project.Read more: Foxconn Struggles to Put Wisconsin First After Subsidy DealTo contact the reporter on this story: Debby Wu in Taipei at email@example.comTo contact the editors responsible for this story: Peter Elstrom at firstname.lastname@example.org, Edwin Chan, Colum MurphyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Netflix Inc. is facing the toughest year in its history in terms of new streaming competition, but the company says it’s ready.With technology and media giants such as Apple Inc., AT&T Inc., Comcast Corp. and Walt Disney Co. all bringing new video platforms online, Netflix is working to keep customers loyal with a flood of shows and movies. The company plans to boost its spending by 20% this year, bringing its programming budget to about $12 billion on a profit-and-loss basis.“We view our big long-term opportunity as big and unchanged,” Chief Executive Officer Reed Hastings said during a pretaped recap of its fourth-quarter earnings, released Tuesday.Netflix climbed as much as 4.3% in late trading after delivering generally upbeat results, with overseas growth helping offset a slowdown at home. Though the company expects to add fewer subscribers in the current quarter than Wall Street projected, it said there’s “ample room for many services to grow.”Netflix investors have been grappling with whether the company’s days of reliable growth are over. The company added fewer customers in 2019 than it did in 2018, and its increase in the U.S. and Canada decelerated by more than 3 million. In posting the results Tuesday, Netflix said price hikes and a growing array of options have made it harder to attract customers.It’s only going to get tougher. Apple’s TV+ and the Disney+ platform both launched in the U.S. during November, enticing consumers with lower-cost services, while AT&T’s HBO Max and Comcast’s Peacock are both coming online in the next few months.All those competitors are likely to slow customer additions and increase the number of existing customers who cancel Netflix.Against that backdrop, Netflix posted its weakest year of domestic subscriber growth since it first broke out its online service from the company’s traditional DVD-by-mail business in 2011. Netflix is projecting a gain of 7 million paid subscribers worldwide in the first quarter, short of the 7.82 million estimate.“We are working hard to improve our service to combat these factors,” it said in a letter to shareholders.Staying the CourseBut the Los Gatos, California-based company argues that its strategy is still sound, and competition shouldn’t cause it to change course. Losing popular shows such as “Friends” to its new rivals has had no impact on viewership so far. Netflix subscribers are just finding other shows to watch, Chief Content Officer Ted Sarandos said.For proof, Netflix can point to its global growth in the latest quarter. The company added 8.76 million customers in the period, compared with forecasts of 7.65 million. Hastings described them as “amazing numbers.”Netflix has pinned its future potential on growth outside the U.S., where it doesn’t yet face the same level of competition. Europe and Latin America have been the company’s engine in the past couple years, and continued to serve that role in the fourth quarter. Netflix added 4.4 million customers in Europe, bringing its overall total to almost 52 million, and another 2.04 million customers in Latin America.Non-English ShowsNetflix plans to release more than 100 seasons of local language programming next year. Though its biggest global hits are mostly English-language shows such as “Stranger Things” and “The Witcher,” its most popular programs in many territories are in other languages, like Spain’s “Casa de Papel.” The company is also experimenting with different pricing plans in Asia.Netflix has borrowed billions to fund all that programming, and its long-term debt stands at almost $15 billion. But the company said this past year will mark the high-water mark in terms of its cash burn. Earnings of $1.30 a share also handily beat analyst estimates of 30 cents, lifted by a tax benefit.Investors weren’t sure what to make of Netflix’s results at first. The shares had dropped as much as 3% to $327.97 in extended trading before rebounding. The company’s shares climbed 4.5% so far this year before the close.“After several years of unchecked dominance in the U.S. streaming-video industry, Netflix faces high-profile new streaming rivals,” Geetha Ranganathan, a Bloomberg Intelligence analyst, said in a report. “Yet the breadth of its content and a compelling value proposition will make it hard for new entrants like Disney+ to unseat the company.”(An earlier version of the story corrected a quarterly financial comparison.)To contact the reporter on this story: Lucas Shaw in Los Angeles at email@example.comTo contact the editors responsible for this story: Nick Turner at firstname.lastname@example.org, John J. Edwards IIIFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Apple Inc. has asked chipmaking partner Taiwan Semiconductor Manufacturing Co. to increase its output of A-series processors this quarter in order to satisfy higher-than-anticipated iPhone demand, people familiar with the company’s plans said.The iPhone 11 and 11 Pro models were well received on their debut in the fall and their sales in China have been particularly strong, outselling 2018’s releases in a market that has otherwise been shrinking. Even without fifth-generation wireless networking, iPhone demand has been outperforming the market and Apple’s expectations, and the company asked assembly partners to increase their production of the latest generation.The most affordable iPhone 11 model, equipped with an LCD screen, was a particular driver for the increased demand, one person said.New Low-Cost IPhone Said to Enter Mass Production in FebruaryAlong with the popularity of existing models, Apple’s business with TSMC is also set for a boost from an imminent iPhone SE successor, a low-cost model that will begin mass production in February ahead of an official unveiling as soon as March, Bloomberg News reported. It will be built around the same processor as the iPhone 11 generation.TSMC spokeswoman Nina Kao said the company doesn’t comment on its business with any specific customer. An Apple spokeswoman declined to comment.The Taiwanese chipmaker recently reported earnings above most analysts’ expectations and it forecast another good quarter ahead. Though it faces potential headwinds from the threat of tightening U.S. sanctions on key customer Huawei Technologies Co., analysts believe additional demand from Apple and Advanced Micro Devices Inc. will replace any potential Huawei drop-off.\--With assistance from Mark Gurman.To contact the reporter on this story: Debby Wu in Taipei at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Vlad SavovFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Apple Inc. is discussing making original podcasts related to programs on its Apple TV+ video streaming service, another sign of the technology giant’s growing ambitions in entertainment, according to people familiar with the plans.Apple sent out a request for pitches last summer, asking podcast producers to pitch ideas for audio programs with some connection to its shows, one of the people said. The company has since discussed making podcasts with producers of its original series, according to two of the people, who asked not to be identified because the plans aren’t final.The audio shows would help market Apple’s growing slate of original programs, which have already picked up some accolades. “The Morning Show” earned three nominations at the 2020 Golden Globe Awards, and star Jennifer Aniston was named best actress at the Screen Actors Guild Awards. “Little America,” an anthology series released Jan. 17, has gotten rave reviews from critics.Apple, based in Cupertino, California, declined to comment.The plan speaks to Apple’s big bet on entertainment and media. After decades of making popular devices like the iPhone and iPad, Apple is investing billions in online services that generate additional sales from its existing customers. Services accounted for more than $12 billion in sales last quarter for Apple, but the hope is to get much more.Apple released its first batch of TV series last November in conjunction with the debut of Apple TV+, its paid video service. The company plans to spend billions of dollars a year on original TV shows and movies, and has signed exclusive deals with Oscar-winning director Alfonso Cuaron and Emmy-winning actress Julia Louis-Dreyfus.Apple’s strategy is in many ways modeled after Netflix Inc., owner of the world’s most popular paid TV network. Netflix already produces podcasts that take viewers behind the scenes of shows, profiles its employees and spotlights prominent black members of the entertainment industry.Podcasting is hardly a new business for Apple. The company is the dominant distributor of such programs in the U.S. and many international markets. More than half of all podcast listening happens in the company’s Podcasts app.But the company is under new pressure from Spotify Technology SA, already Apple’s biggest competitor in paid music. Spotify has spent more than $400 million on podcasting companies over the past year, and it’s commissioning dozens of original podcasts exclusive to its service.While Apple has transitioned from selling other companies’ movies and TV shows to produce its own, it has yet to do the same in podcasting. Apple has discussed funding original podcasts of its own, however, and these podcasts would be a step in that direction.To contact the reporters on this story: Lucas Shaw in Los Angeles at email@example.com;Mark Gurman in Los Angeles at firstname.lastname@example.orgTo contact the editors responsible for this story: Nick Turner at email@example.com, Alistair BarrFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- How can institutions balance the existing businesses that pay the bills today with creating the new technologies that will pay the bills tomorrow? That was the challenge facing this week's guest on Master in Business, Safi Bahcall, a member of President Barack Obama’s council of science advisers, and author of the book, “Loonshots: How to Nurture the Crazy Ideas That Win Wars, Cure Diseases, and Transform Industries.”Bahcall said that soon after he was appointed he was told he should update Vannevar Bush’s guidelines to innovation in government. The problem was, he had no idea of who Vannevar Bush was. He dove into his history and discovered that it was Bush who had persuaded President Franklin Roosevelt to create the Office of Scientific Research and Development, which played a huge role in the war effort. The OSRD accelerated development of existing technologies and created new ones, including radar and the proximity fuse, which detonates munitions when they reach a predetermined distance from a target.Bahcall argues that too many institutions fail to transition to thinking about the future from operating in the present. The group that is making the money for the company today wants to stick with what is working and those projects that have a very high success rate. The group that is creating the game-changing products are taking chances on ideas with a very high failure rate. Bridging the two groups is the role of leadership, something that companies such as Apple and Pixar historically have done well.His favorite books can be seen here; a transcript of our conversation is here.You can stream/download the full conversation, including the podcast extras on Apple iTunes, Overcast, Spotify, Google, Bloomberg and Stitcher. All of our earlier podcasts on your favorite pod hosts can be found here.Next week, we speak with Barbara Tversky, professor of psychology at Stanford and Columbia, and author of "Mind in Motion: How Action Shapes Thought." Tversky was married to the now-deceased Amos Tversky, and helped Michael Lewis research his book on Tversky and Daniel Kahneman, "The Undoing Project."To contact the author of this story: Barry Ritholtz at firstname.lastname@example.orgTo contact the editor responsible for this story: James Greiff at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Barry Ritholtz is a Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Who said Davos doesn’t make a difference? As world leaders, business executives and cheerleaders for the planet descended on the Swiss resort for the annual World Economic Forum, one diplomatic victory was being chalked up on the sidelines: A presidential truce between Donald Trump and Emmanuel Macron over France’s plan to tax tech companies, which the U.S. says discriminates against its national champions.After threats of retaliatory trade tariffs on both sides, Macron took to Twitter to declare a “great” discussion with Trump that would lead to a “good agreement” on de-escalation. Trump retweeted that assessment, responding in the affirmative with “excellent!” But it’s hard to see much worth celebrating yet.What this truce amounts to isn’t exactly clear, for one thing, and it’s certainly not being trumpeted in the way that Trump’s “beautiful monster” of a phase-one deal with China was last week. Avoiding an escalation of tariffs is obviously a good thing. But Trump has already leveled so many trade threats at France and the European Union — driven by hatred of the trade surpluses they run with the U.S. — that it’s hard to feel excited at the prospect of one less gun barrel. If Trump actually ends up retracting his specific threat to hit $2.4 billion of French products with tariffs, that still doesn’t automatically guarantee protection for Airbus aircraft or German cars.It’s also not clear what Macron has gifted Trump in order to get de-escalation onto the agenda. According to the Wall Street Journal, France may have simply offered to “pause” its tech tax until a worldwide solution is agreed upon by the Organization for Economic Co-operation and Development — where support from the U.S. is obviously crucial. That’s not as huge a climb down as it initially seems: Paris could feasibly suspend the collection of digital tax payments due in April without scrapping the principle or the structure of its tax, as my Bloomberg News colleagues write elsewhere. But it still looks like Trump’s threats have paid off on one level.If the original sin is that today’s tech giants — Google parent Alphabet Inc., Facebook Inc., Amazon.com Inc. — aren’t paying their fair share in tax, we seem to be veering a long way from absolution. Things would be different if Europe could set aside its differences and agree on the fundamental good that a digital tax across its 28 members (soon to be 27) would bring. Brussels estimates global tech firms pay an average tax rate of 9.5%, compared with 23.2% for bricks-and-mortar peers. But the EU is divided on the need to overhaul the data economy, with low-tax jurisdictions like Ireland and the Netherlands resisting a common levy on digital firms.The Trump administration has shown itself adept at exploiting these divisions. France’s move to go it alone with a digital tax was politically popular, but fiscally weak. It is only expected to bring in 500 million euros ($555 million) a year, a digital drop in the ocean of France’s approximately 80 billion-euro deficit. Despite being fundamentally righteous, it allowed Trump to poke the soft underbelly of European unity by training his tariff weapon on Paris — and confronted the Macron administration with the prospect of pain for key exporters. The U.S. trade deficit with France was $16.2 billion in 2018.The pressure is now on to get consensus among more than 135 countries in the OECD-led push for an agreement on how to tax digital profits. It’s a solution favored by the likes of Apple Inc.’s Tim Cook, which speaks to how companies prefer the predictability of global solutions over patchy national ones. But until such a solution is actually agreed, it will be hard to celebrate this latest Franco-American “truce.” It has allowed France and Europe to save face by avoiding the reality of a new trade confrontation with Trump as he fights for re-election. It has offered tech firms a way to save money. But it hasn’t really saved the world from the threat of more trade wars. Davos can’t achieve everything.To contact the author of this story: Lionel Laurent at firstname.lastname@example.orgTo contact the editor responsible for this story: Melissa Pozsgay at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Lionel Laurent is a Bloomberg Opinion columnist covering Brussels. He previously worked at Reuters and Forbes.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Apple Inc dropped plans to let iPhone users fully encrypt backups of their devices in the company's iCloud service after the FBI complained that the move would harm investigations, six sources familiar with the matter told Reuters. It shows how much Apple has been willing to help U.S. law enforcement and intelligence agencies, despite taking a harder line in high-profile legal disputes with the government and casting itself as a defender of its customers' information. The long-running tug of war between investigators' concerns about security and tech companies' desire for user privacy moved back into the public spotlight last week, as U.S. Attorney General William Barr took the rare step of publicly calling on Apple to unlock two iPhones used by a Saudi Air Force officer who shot dead three Americans at a Pensacola, Florida naval base last month.
Apple's lawsuit against a former chip executive-turned-rival will have implications for employees all over California who are considering striking out on their own and creating the startups that drive tech business and culture. California's long-held public policy favours employee mobility in contrast to states that allow strong non-compete agreements. Apple filed the lawsuit in Santa Clara County Superior Court against Gerard Williams III, who left the company last year after more than nine years as chief architect for the custom processors that power iPhones and iPads to start Nuvia Inc, which is designing chips for servers.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Presidents Emmanuel Macron and Donald Trump agreed to a truce in their dispute over digital taxes that will mean neither France nor the U.S. will impose punitive tariffs this year.Macron said on Monday he had a “great discussion” with Trump on the issue, without giving details.“We will work together on a good agreement to avoid tariff escalation,” he said on Twitter.“Excellent!” Trump said in a reply to Macron’s post, without providing additional information. Trump is en route to Davos, Switzerland, for the World Economic Forum.A White House readout of the call was notably more muted, saying only that the “two leaders agreed it is important to complete successful negotiations on the digital services tax” and “discussed other bilateral issues.” And neither a White House spokesman nor officials with the U.S. Trade Representative’s office would confirm that the U.S. president had called off his announced tariffs.Still, the possible respite may defuse transatlantic tensions that had been building between Washington and Brussels along another potential trade war front. Last week, Trump signed a cease-fire with China in phase one of a broader deal aimed at balancing trade between the world’s two largest economies.The European Union is an even bigger U.S. trading partner than China and supply chains between the two economies, particularly in automotive and financial services industries, are intertwined in ways that would make a tit-for-tat tariff dispute even more harmful to the world economy.Macron’s government still hopes to find a solution that fits within discussions at the Organization for Economic Cooperation and Development’s work on the issue, according to a French official who asked not to be identified in line with government rules.European finance ministers meeting in Brussels Tuesday will discuss progress of the OECD talks. While the OECD is still working on its proposal for taxing tech companies around the world, France pushed ahead with its own levy last year that hit U.S. internet giants like Google, Apple Inc. and Amazon.com Inc.“We now have an agreement between the two presidents to avoid any tariff escalation and avoid any trade war,” French Finance Minister Bruno Le Maire told reporters in Brussels before the meeting. “It’s remains a difficult negotiation -- with digital tax, the devil is in the details and we need to resolve the details.”Paris and Washington have discussed the possibility of France suspending the collection of the digital tax payments due in April as long as the U.S. refrains from imposing new tariffs, French officials said. But that wouldn’t constitute a withdrawal of the levy, they added. For its part, the French government denies its national tax is discriminatory and warned that the EU would retaliate if the U.S. imposed additional levies.The U.S. has said that the French tax discriminates against American technology companies, citing Section 301 of a 1974 American law that Trump has thus far reserved to justify tariffs against China. That opened the door to the U.S.’s threat to hit $2.4 billion of French goods with tariffs in retaliation.Among the French products targeted with duties of as much as 100% were luxury items like wine, cheese and makeup. One American wine merchant called it the biggest threat to the industry since Prohibition a century ago.For its part, the French government had warned that the EU would retaliate if the U.S. imposed additional tariffs.The dispute was another headache for European trade officials scrambling to expand their policy arsenal as the U.S. takes aim at a rules-based system for global trade that Trump argues is outdated and tilted against America. It also coincided with a change in leadership at the European Commission, the EU’s executive arm.EU trade commissioner Phil Hogan visited Washington last week for the first time in the job, partly to plead for talks rather than tariffs in disagreements like the French digital tax. At stake, he said, was transatlantic trade in goods and services valued at more than $3 billion a day.“Sounds like a fairly healthy relationship to me,” Hogan said Thursday in the U.S. capital. “So why put tariffs on these EU products to make them more expensive for your people?”The truce follows weeks of discussions between Treasury Secretary Steven Mnuchin and Le Maire, who were scheduled to meet Wednesday in Davos, Switzerland, the alpine resort town where government officials and business leaders gather during the winter to discuss whatever is ailing the global economy.The dispute has ramifications outside France as other countries try to come up with ways to generate revenue from the digital economy. Mnuchin told the Wall Street Journal that the U.K. and Italy will face American tariffs if they proceed with similar levies on foreign tech firms.U.S. and EU trade relations started to sour in 2018 when the Trump administration invoked national-security considerations to impose tariffs on steel and aluminum from Europe. As a U.S. military ally, the EU was infuriated and promptly retaliated with levies on iconic American brands such as Harley-Davidson Inc. motorcycles and Levi Strauss & Co. jeans.A subsequent U.S. threat to wreak significantly more economic damage by targeting the European auto industry with duties on the same security grounds led to a hastily agreed truce and a pledge by both sides to work toward reducing industrial tariffs across the board.Since then, the Trump administration has refused to start the tariff-cutting negotiations unless Europe includes agriculture in them. Also, it imposed levies on EU products in retaliation over government aid to Airbus SE that was deemed illegal by the World Trade Organization, and disabled the WTO’s appellate body,The EU, meanwhile, is pressing ahead with a plan for tariffs against the U.S. in a parallel WTO case over unlawful subsidies to Boeing Co.Trump, scheduled to speak Tuesday in Davos at the World Economic Forum’s annual meeting, on Sunday reiterated his frustration with Europe as a trading partner.“Europe has had tremendous barriers to us doing business with them. All those barriers are coming down. They have to come down,” he told a conference of farmers in Austin, Texas. “If they don’t come down, we’re going to have to do things that are very bad for them.”He added, “Europe was, in many ways, more difficult -- and is more difficult -- than China.”(Updates with possible French concession in the 11th paragraph)\--With assistance from Jonathan Stearns, Justin Sink and Chelsea Mes.To contact the reporters on this story: Ania Nussbaum in Paris at firstname.lastname@example.org;William Horobin in Paris at email@example.comTo contact the editors responsible for this story: Ben Sills at firstname.lastname@example.org, Brendan Murray, Wendy BenjaminsonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Tim Cook rarely invests his time and money in products without the Apple Inc. logo. But when he tried a prototype shower head at his local gym about five years ago, he made an exception. Philip Winter, who helped create the Nebia shower head, recalls moving to San Francisco in 2014 to get his idea off the ground. The shower head sprays in a way that uses less water, but still keeps people warm. Crafted from materials including aluminum, the system looks like something Apple might design, if it made bathroom hardware. To develop the product, Winter persuaded gyms in Silicon Valley to run pilot tests. After installing the shower head early in the morning, he’d wait outside locker rooms to get feedback. That’s when he met Cook, who happened to use an early version at the gym in Palo Alto, California, where the Apple chief executive officer worked out most mornings.Cook was drawn to the environmental aspect, according to Winter, who asked the Apple boss if he’d be willing to make an investment. Despite the first prototype being “crude,” the Apple CEO was excited about the product because there hadn’t been much recent innovation in the shower market. He also appreciated the design, Winter said. Cook backed Nebia Inc. about five years ago and contributed in later financing rounds, too. The startup has raised almost $8 million in total, according to Crunchbase. Winter wouldn’t disclose how much Cook invested, but said it was “significant.” The Nebia co-founder said Cook used his own money and stressed that the startup hasn’t received any formal help from Apple, which declined to comment. Still, Cook shared some of the knowledge he’s amassed leading the world’s largest technology company, advising Nebia on suppliers and pushing the startup to prioritize user experience, design and sustainability.“His emails are very long, well crafted and detailed,” Winter said.Cook also told Winter to look for other investors who believe in the product, rather than venture capitalists simply looking to make a quick return. Eric Schmidt, the former CEO of Google, is also a Nebia backer, through the Schmidt Family Foundation. Nebia unveiled a new version of its shower system on Tuesday that is smaller and cheaper. It will cost $199, down from $499 for the current version. Winter asked Cook about four potential partnerships while developing the new model. Cook wasn’t keen about the first three, but supported a deal with faucet maker Moen because of its reputation, Winter said. To contact the author of this story: Mark Gurman in Los Angeles at email@example.comTo contact the editor responsible for this story: Alistair Barr at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
16in MacBook Pro review: bigger battery, new keyboard, new AppleApple shows it’s listening to pro users by producing a thicker, heavier and better machine
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Taiwan’s Pegatron Corp. plans to set up production facilities in Vietnam, according to people familiar with the matter, becoming the latest Apple Inc. assembly partner to establish a presence in the Southeast Asian nation as they diversify beyond China.Taipei-listed Pegatron is looking for a site to build a brand new facility in the north of the country, according to people familiar with the matter who asked not to be identified discussing private plans. It already has rented a separate facility in the northern city of Haiphong, they said. Pegatron will make styluses for Samsung Electronics Co.’s smartphones there, one of the people said. The gadget manufacturer’s share price remained largely unchanged in Tuesday trading.Pegatron joins Apple’s two other iPhone assemblers -- Wistron Corp. and Hon Hai Precision Industry Co. -- in developing manufacturing facilities or building extra capacity in Vietnam. None of the three are making iPhones in Vietnam and have no imminent plans to do so. The only Apple device Pegatron makes is iPhones. GoerTek Inc. is now making AirPods in the country, while two other Apple assembly partners, Compal Electronics Inc. and Luxshare Precision Industry Co., also have a presence in Vietnam.An almost two-year-long trade war with the U.S. has put China’s position as factory for the world of technology in jeopardy, undermining a decades-old global supply chain and pushing electronics companies to look for alternative production bases. Though Washington and Beijing have signed a phase-one trade deal, supply-chain diversification is still essential in the longer term given tensions are unlikely to fully subside and labor costs are rising in China.Taiwanese companies have been particularly active in their search for options, with companies from Inventec Corp. to Foxconn Technology Group either moving production back home or to more distant regions around Asia, seeking to escape U.S. tariffs.Vietnam has been a top beneficiary from tariff-related trade diversions. Indonesia has also gained, including garnering investment from Pegatron.“Vietnam’s enhanced vocational training has helped boost the quality of its pool of workers to close to China’s level and its government has been keen to clear hurdles including bureaucracy for foreign companies to invest in the country,” said Roy Lee, a researcher at Taipei-based Chung-Hua Institution for Economic Research.(Updates with share details in second paragraph)To contact the reporter on this story: Debby Wu in Taipei at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Colum Murphy, Vlad SavovFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Apple Inc. Chief Executive Officer Tim Cook said he’s “hopeful and optimistic” the intergovernmental Organization for Economic Co-Operation and Development will strike a deal on corporation tax, as his company battles the European Union over a tax bill.Speaking at an event in Dublin on Monday, Cook said the debate on taxing “complex” multinational companies needs to take place at a global level. The OECD is meeting with countries this year about a plan to overhaul the tax system and address concerns that these firms, particularly tech giants, aren’t paying taxes in the right amounts or to the right countries.Read more about the OECD’s plans here.“Everybody knows” the system needs to be overhauled, Cook said, acknowledging it isn’t perfect. While law can’t be “retrofit,” Cook said he “desperately” wants taxes to be fair.Cook’s comments came as the company battles the EU after the bloc imposed a tax bill of as much as 13 billion euros ($14.4 billion) plus interest on the company, claiming Ireland illegally gave it special treatment that lowered Apple’s liabilities. Apple, which has appealed the decision, is the largest taxpayer in the world and has followed all tax laws, Cook said. Ireland also said it did nothing wrong.Cook visited Dublin to receive an award from Irish Prime Minister Leo Varadkar for his company’s contribution to the nation’s economy since it set up a base there in the 1980s. It employs more than 6,000 people in Cork.To contact the reporters on this story: Peter Flanagan in Dublin at email@example.com;Dara Doyle in Dublin at firstname.lastname@example.orgTo contact the editors responsible for this story: Ambereen Choudhury at email@example.com, Amy Thomson, Christopher ElserFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.