|Day's Range||5.80 - 7.12|
Shailene Woodley thinks the OTT/Streaming wars are good for Hollywood by creating opportunity for everyone in the industry.
Apple Inc's new iPhones will used recycled rare earth elements in a key component, the company said on Wednesday. Apple said it will used recycled rare earths in its "Taptic Engine," a part that lets iPhones mimic a physical button click despite being a flat pane of glass. The part is about one-quarter of the rare earth elements inside the iPhone models.
Apple accused the European Commission of misunderstanding its business on day two of the iPhone maker's appeal against a $14 billion tax order, in a dispute that is key to the EU's drive to collect more taxes but which could also run for years. The case centres on tax rulings granted by Ireland to two Apple businesses in the country, Apple Sales International and Apple Operations Europe, which reduced Apple's tax burden for more than two decades - to as low as 0.005% in 2014. The European Commission ordered the U.S. company in 2016 to pay 13 billion euros ($14.4 billion) of taxes it said were owed to Ireland.
In a well-strategized move, Apple (AAPL) is relocating its production base to India. Apple's investment in India will be around $1 billion.
As markets churn, there’s some unexpected fallout in fund holdings, including classifying Apple, one of the world’s biggest companies, as a “value” play.
Early reviews of the new iPhones praised their cameras and battery life but generally recommended holding onto older phones
Despite investors' positive response to Apple Inc.'s (AAPL) new product launches, including the feature-packed iPhone 11, not all are so impressed. Rosenblatt Securities analyst Jun Zhang estimates that initial weekend preorders were about 20% lower for the iPhone 11 Pro/Max and 15% lower for the iPhone 11 versus the comparable models last year, as outlined by Barron’s. Zhang and other skeptics, including analysts at Goldman Sachs, say that Apple is unlikely to make up for any weakness in the iPhone, which still accounts for roughly half of sales.
In a provocative new essay, three academics argue that the abundance of cheap capital encourages economic concentration, which stymies growth.
(Bloomberg) -- Amazon.com Inc.’s Alexa has mastered Hindi in just a few years.The voice assistant introduced to India in 2017 gets a major local makeover for one of the largest retail markets. From Wednesday, Amazon launches a version that now speaks Hindi and Hinglish -- a unique blend with English. It can also switch automatically between all three. The new, improved Alexa and Echo speakers hit the market in time for the Diwali shopping season.The voice assistant lets customers to ask for music, get Bollywood news, cricket updates and more in Hindi and Hinglish on its Echo and other voice-controlled smart speakers. It will respond in an unmistakably Indian accent to Hinglish questions such as “Alexa, Bollywood ke hottest gane sunao” and “Volume badhao” (to ask for the latest Bollywood hits and increase the volume, respectively). “Alexa, latest cricket score batao” yields the latest scores.Technology giants from Apple Inc. to Google are targeting this nation of 1.3 billion people by training virtual assistants in the heterogeneity of its languages and subcultures. Alphabet Inc. too has introduced a Hinglish-speaking Google Assistant, while Apple has hired native speakers to evolve and enrich Siri. In Amazon’s case, Alexa may prove key in a battle against Walmart Inc. in one of the world’s fastest-growing e-commerce arenas, a battle the Seattle online retailer has staked at least $5.5 billion on.Until now, Amazon’s virtual assistant had a limited vocabulary of names, places and popular songs in Hindi and a few others of the country’s roughly one dozen official languages.Read more: Amazon Teaches Alexa to Speak Hinglish. Apple’s Siri Is NextUnderstanding Hindi and Hinglish is critical for companies targeting first-time internet users in the countryside, who are coming online rapidly thanks to cheap devices and cut-rate wireless data. The Hindi internet user base will outgrow India’s English internet users by 2021, according to consultancy KPMG. But even Hindi has dozens of dialects and regional variations.“Hindi changes every 100 kilometers or so,” Rohit Prasad, Amazon’s head scientist of Alexa AI, said in an interview. Alexa can handle varied regional accents and dialects. “Alexa has an Indian personality.”Prasad, 43, grew up in Ranchi in India’s Hindi-speaking heartland, hailing from a family of engineers. Computers were still new then and as a teenager, he abandoned cricket games to run home and catch Star Trek episodes on the government-run TV channel. “It was in the realm of science-fiction then but I was endlessly fascinated by computers and humans communicating with each other.”He studied engineering in the same city before heading to the Illinois Institute of Technology, later working in speech recognition at Raytheon before joining Amazon in 2013. “Having grown up in diverse India, it was indelibly etched in my brain that Alexa has to work for everyone, and not just English speakers,” said Prasad, clad in a casual shirt and jeans and seated in a hotel conference room in New Delhi. “It’s a daunting task.”For instance, the virtual assistant was trained to differentiate between the oft-used Hindi word “achcha” or “okay,” which can sound close to its wake word. In many households, a single conversation can have Hindi and English words liberally interspersed. Alexa will be able to respond in either language without the user having to change settings. The AI will keep learning and improving with time, he said. Alexa in Hindi will also be available on Bose smart speakers, and soon in brands like Motorola and Sony.“It took me 20 years to get here,” Prasad said. “There’s a big deep learning wave right now and if I think of something new in conversational AI, I know I have a fighting chance of getting it right.”To contact the reporter on this story: Saritha Rai in Bangalore at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Apple Inc. is squaring up with tech’s European bete noire, Margrethe Vestager, over its historical tax arrangements in Ireland at a court hearing this week. If the iPhone maker wins, Vestager may be able to use the defeat to her benefit. Back in 2016, EU Competition Commissioner Vestager imposed a 13 billion-euro ($14.4 billion) bill on Apple for unpaid taxes in Ireland, alleging illegal state aid. That case has now reached the EU General Court in Luxembourg. The losing side will be able to appeal one level higher to the European Court of Justice.Though a ruling will still take some months, either outcome could potentially play into Vestager’s hands. If the court decides in her favor, then all well and good: Apple has already placed the funds in escrow, Ireland enjoys a nice boost to its coffers and her efforts to end so-called sweetheart tax deals are rubberstamped.QuicktakeHow Europe’s ‘Digital Tax’ Plans Will Hit U.S. Tech CompaniesIf the court concludes that the arrangement was in fact above board, of course it would prove a blow to the Commission’s ability to use state aid rules to punish countries using tax breaks to prop up certain industries. But if Ireland is able to get away with taxing Apple at such a tiny rate – the Commission says it was as low as 0.005% - then the question becomes: How was this permissible under the global tax system?It could prove a useful political tool for Vestager, who in her new mandate as executive vice president in charge of digital policy will also be responsible for European efforts to change the way technology firms are taxed. It may also help pile pressure on the G-20 to finally agree an overhaul of global tax rules. Moves to change the tax framework are reaching a climax. Back in 2013, the G-20 tasked the Organization for Economic Co-Operation and Development (OECD) with developing a solution to the problem known as base erosion and profit shifting, where companies are able to book profits in countries with more favorable tax regimes. The aim was to come up with a common framework that plugged some tax loopholes. The EU has already made some progress to tackle profit shifting by multinational corporations. But G-20 finance ministers will once again consider a more comprehensive multilateral plan when they meet on the sidelines of the World Bank and International Monetary Fund meetings next month in Washington, D.C. The hope is that the proposals will then be formally adopted by the G-20 at its meeting in Riyadh next year.The bone of contention now is essentially over whether to tax revenue or profit. Traditionally, taxes have been levied on profit, but the nature of digital services means companies can more readily shift around where exactly that profit is booked. Take Facebook Inc., for instance. Is the value being generated in the country where a user clicks on an ad? Or is it in Menlo Park, California, where Facebook has its headquarters and where an engineer might have written the code to serve up that ad?In the absence of a broader agreement to combat profit shifting, the U.K. and France are pushing for digital taxes that would target the former, while the U.S. errs in favor of the latter – understandably, since that boosts its own tax revenue. The existing approach has made it easier to claim residency in lower tax regimes such as Ireland. Efforts to come up with a comprehensive European solution to take on the tech giants have so far failed, prompting France and the U.K. to advance with their own taxes on digital companies’ revenue.The OECD is looking favorably on measures that assess whether a firm has a significant economic presence in a country – a combination of its footprint and sales. It’s also likely to take into account factors such as local user contribution (for example, videos uploaded) and where the product was developed. If the OECD’s proposals aren’t adopted by the G-20, then Vestager has to find a way of convincing European member states to agree on a solution. Countries like Sweden and Luxembourg have so far stood in the way of a consensus.Whether at the G-20 or EU level, a victory for Apple would serve as the primary example of why tax reform is needed.To contact the author of this story: Alex Webb at firstname.lastname@example.orgTo contact the editor responsible for this story: Stephanie Baker at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
U.S. District Judge William H. Orrick today issued an order certifying a class of consumers against Apple in a class-action lawsuit accusing the tech company of issuing refurbished replacement products to consumers under its AppleCare and AppleCare+ protection plans, despite promises of “new or equivalent to new” replacements, according to Hagens Berman. As cited in the judge’s order, Apple’s records show it sold more than 3 million AppleCare and AppleCare+ service plans, where it provided at least one replacement device, many of which were remanufactured. The lawsuit, filed July 20, 2016, in the U.S. District Court for the Northern District of California, seeks compensation for iPhone, iPad or iPod owners who bought AppleCare or AppleCare+ coverage.
Officials from the Justice Department and Federal Trade Commission may provide more information on Tuesday afternoon about their antitrust probes that are targeting Amazon.com Inc., Apple Inc., Facebook Inc. and Alphabet Inc.’s Google.
Apple has awarded $250 million to Corning, the maker of Gorilla Glass, from a fund to invest in advanced U.S. manufacturing.
Apple on Tuesday deepened its ties with a Kentucky manufacturing plant by awarding $250 million to support Corning Inc.’s continued work to develop glass for iPhones and other devices.
Nearly as rapidly as oil prices spiked Monday, they violently retreated Tuesday amid talk that Saudi Arabia will be able to restore production from weekend drone strikes faster than was previously expected.Source: rafapress / Shutterstock.com Oil stood in the way of market upside yesterday and the commodity's Tuesday tumble did not provide much in the way of relief, indicating that many market participants are taking a wait-and-see approach to what comes out of the Federal Reserve meeting Wednesday. * 7 Momentum Stocks to Buy On the Dip Even before the rate cut news, the Fed was making headlines today, stepping into the repo market by buying $53.2 billion in securities to ease a sudden spike in short-term interest rates.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"The turmoil in the repo market caused a key benchmark for policy makers -- known as the effective fed funds rate -- to jump to 2.25%, an increase that, if left unchecked, could have started impacting broader borrowing costs in the economy," according to Bloomberg.Regarding the Fed's plans for interest rates, it appears likely that a rate cut of 25 basis points will be unveiled tomorrow, but after that, the central bank could be on pause for the rest of this year.With that in mind, traders pushed the Nasdaq Composite higher by 0.40% while the S&P 500 rose by 0.26%. The Dow Jones Industrial Average added 0.13%. In late trading, just 12 of the Dow's components were pointed higher and just four of those names were up 1% or more. Trade TalkWhat was surprising about the logy performances notched by stocks today was that President Donald Trump made some encouraging comments about the potential for a trade deal with China. Perhaps it was the broad time frame that the president gave that kept stocks from rallying. Aboard Air Force One heading to California, Trump told members of the media that a trade deal could happen soon or around the time of the 2020 election.That broad timeline wasn't enough to really jolt tariff-sensitive Dow stocks higher. For example, Apple (NASDAQ:AAPL) and Nike (NYSE:NKE) were sporting negligible gains in late trading, and most of the rest of the day's Dow winners were either defensive stocks or companies that are not heavily dependent on China as a source of revenue.Speaking of China, there was some good news on that front for at least one Dow component today. Boeing (NYSE:BA) was the blue chip index's leader, gaining about 1%, after the aerospace giant boosted its China demand forecast.The company said it expects China to purchase 8,090 passenger jets through 2038, up from a prior forecast of 7,690 planes through 2037. Those new orders will also be a boon to Boeing's services business, which is becoming an important driver of top- and bottom-line growth for the firm. Dow OffendersUnfortunately, Tuesday's Dow offenders is larger than we'd like to see. Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) can be excused due to the aforementioned drop in oil prices.Home Depot (NYSE:HD) lost about half a percent after Guggenheim analyst Steven Forbes cut his rating on the home improvement retailer to "neutral" from "buy." Forbes said the company's current investment initiatives could pay off over the long run, but over short-term, those spending plans could crimp margins."Bottom line, we find it difficult to see a path to earnings before interest and taxes margin expansion in 2020 as both a) investment spending and b) the associated D&A drag are poised to ramp," said the analyst.In what is likely a case of profit taking after major run high, Caterpillar (NYSE:CAT) traded lower today after entering the day with a gain of more than 15% over the past month. The machinery maker has been highlighted as one of the names that could benefit from higher oil prices, so that factor was at play to the downside. Bottom Line on Dow Jones TodayToday's market action wasn't all that surprising when considering the backdrop riskier assets are contending with. The pullback in oil prices could be a positive because there's always a sweet spot for oil companies and consumers. High gas prices could pinch consumer spending, something that would be a detriment to the broad economy, so today's oil retreat is, in a broader context, a positive.The Fed probably obliges with a rate cut tomorrow, but the devil will be in the details regarding how many more times this year the central bank will ease. If the tone isn't to investors' liking, riskier assets could be roiled.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post Dow Jones Today: Oil Slides, Investors Wait on Fed appeared first on InvestorPlace.
Apple announced three new iPhones last week. Its new line of iPhones will be critical to its revenue growth in the upcoming holiday season and beyond.
Apple-backed DiDi Chuxing has received a license to operate a fleet of self-driving cars on a pilot basis in part of the Jiading district in Shanghai.
There's not a stock in the market with a more pitched bull and bear divide than Tesla (NASDAQ:TSLA) stock. Bulls cite a massive growth opportunity -- and a company that can help improve life on Earth. Bears point to the company's lack of profitability, a long list of broken promises and an arguably inflated valuation.Source: Hadrian / Shutterstock.com I've long leaned toward the bearish side of the argument (and taken bearish option positions in the stock, though I'm currently on the sidelines) for one simple reason: I don't trust its management. That concern isn't really based on the arguments over the infamous "funding secured" tweet and the still-lengthening list of broken promises.Rather, it comes down to the fact that auto manufacturing is a notoriously difficult and capital-intensive business. As both TSLA bulls and bears will point out (for very different reasons), among U.S. manufacturers, only Tesla and Ford (NYSE:F) have never gone bankrupt.InvestorPlace - Stock Market News, Stock Advice & Trading TipsYet Tesla, drama aside, has hardly executed well -- or, in my opinion, been managed well. The company announced in late February it was closing all its stores, then reversed field two weeks later. Prices constantly move around. The decision to avoid model years has created issues in parts and services. This is too difficult an industry to not have detailed strategies and top-notch execution.TSLA bulls for the most part have been forgiving, and chosen to put their faith in CEO Elon Musk. At this point, I wonder whether it's still possible to ignore his critics. Do You Believe in Robo-Taxis?At Tesla's Autonomy Day in April, Musk said the company was on its way to fully autonomous driving. He announced that the company would have 1 million "robo-taxis" on the road by the end of 2020.Musk doubled down on that claim on an investor call a little over a week later. He told listeners that in three years existing Tesla models would be worth $150,000-$250,000. In July, that figure came down a bit, but on Twitter Musk still put the value at $100,000-$200,000. * 7 Momentum Stocks to Buy On the Dip So a key question for anyone considering Tesla stock is this: Do you believe those claims?Few do. TSLA stock actually declined 4% in trading on the day of the Autonomy Day (though, to be fair, it regained those losses the following session). Noted TSLA bull Gene Munster of Loup Ventures said in the context of Apple (NASDAQ:AAPL) that "autonomy is going to take longer than people think." Most auto executives believe it will be at least a decade. Autonomy leader Waymo, a unit of Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL), believes it's even further away.In fact, it certainly doesn't seem like Tesla itself believes its CEO. After all, the company is cutting the price of both the Model 3 and the Model Y. Why, exactly, is Tesla selling "appreciating assets," as Musk termed them, for 40% of the company's low estimate of their value? Tesla closed the second quarter with $5 billion in cash. Surely, it could lower deliveries and either sell the cars at a bigger profit or keep them for an in-house fleet.After all, Tesla is guiding for total production of 10,000 units a week by the end of the year. 500,000 units annually at $100,000 each would be worth $50 billion. That's roughly equivalent to Tesla's current enterprise value. What Does That Mean for TSLA Stock?The dubiousness of Musk's claims in turn leads to another question: Can an investor buy Tesla stock if he or she doesn't believe the CEO?Obviously, many investors believe the answer is "yes." Tesla has a large retail shareholder base. Institutions -- and Wall Street analysts -- in many cases have stuck behind the company, and behind TSLA stock.And maybe the opportunity is such that the stock is worth the risk. After all, an investor could plausibly argue that even if Musk is exaggerating, TSLA stock still has upside. If the robo-taxis are worth $50,000 and won't arrive for a few years, that still suggests potentially higher prices down the line.That might be true. But remember: This is a brutally difficult industry. It requires huge amounts of capital (as Tesla has learned). It requires execution and strategy that are on point.And Musk is making what appears to be a ridiculously optimistic claim about something that is a big part of the Tesla business model -- and the bull case for Tesla stock. This isn't random musing about life on Mars. The 1 million robo-taxis by next year claim was made at an event specifically designed to highlight the company's plans in autonomy. It wasn't an off-hand remark made on an earnings call or at a conference.From here, if an investor can't believe that goal, that investor can't, and shouldn't, own Tesla stock. For now, many investors see it differently. That may not be the case forever.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post Can Tesla Stock Investors Trust Elon Musk? appeared first on InvestorPlace.
Apple's new products, Goldman's reservations about the stock, iPhone security issues and its trillion-dollar valuation are the highlights of this roundup.