World
Breakingviews – Google giggles at China tech’s shrinking act
HONG KONG, March 31 (Reuters Breakingviews) – As an $18 trillion financial system house to 1.4 billion folks, China is a pure font of statistical superlatives. The nation’s web giants, nonetheless, are dwarfed by American colossi just like the $1.3 trillion Google proprietor Alphabet (GOOGL.O). The hole is just getting bigger: prompted by a traditionally low valuation – and years of regulatory torment – Alibaba (9988.HK) this week unveiled plans to interrupt into six elements, paving the best way for different native conglomerates to comply with. Buyers are cheering, however champagne jeroboams are in all probability popping in Cupertino, Mountain View and Seattle too.
At its peak, the mixed market worth of the eight hottest Chinese language tech index constituents – Alibaba, Tencent (0700.HK), Meituan (3690.HK), PDD (PDD.O), JD.com (9618.HK), NetEase (9999.HK), Baidu (9888.HK) and Xiaomi (1810.HK) – crossed $2.5 trillion in February 2021. Entry to low cost capital helped founders like Alibaba’s Jack Ma rapidly diversify and construct sprawling empires with world ambitions. However President Xi Jinping, nervous about monomaniacal executives, monopolistic behaviour, misused person information and murky monetary danger, moved to rein within the business.
Ensuing crackdowns have helped greater than halve the Chinese language octet’s mixed market capitalisation. In the meantime, the highest eight U.S. tech names, led by Apple (AAPL.O), Microsoft (MSFT.O) and Alphabet, are price $8 trillion at this time. Breaking apart conglomerates like Alibaba ought to increase valuations and assist ringfence regulatory danger: Bernstein analysts estimate the sum of Alibaba’s elements may very well be price an combination $392 billion, in comparison with $228 billion earlier than the deal was introduced. The fee, although, can be economies of scale.
The American tech giants already generate thrice extra income and almost 5 instances extra free money circulation than their aspirant Chinese language challengers, Refinitiv Eikon information exhibits. Sitting on large money piles, Alphabet and Meta Platforms (META.O) are transferring into Southeast Asia – Fb’s quickest rising market – the place Chinese language rivals as soon as hoped they might acquire share to offset slowing development at house.
Scale also can help innovation. A lot exhausting science comes out of company labs as a result of conglomerates can simply skim revenue from steady companies and put it into costly lengthy photographs on synthetic intelligence, nano-computers and batmobiles. Alphabet’s R&D funds, for instance, was $40 billion in 2022, 11 instances larger than China’s search monopoly Baidu, which can also be making an attempt to show itself into an AI powerhouse. Shareholders in Alibaba’s cash-cow e-commerce unit could not wish to fund dangerous bets within the cloud computing affiliate.
Xi could also be happy to chop his nation’s dotcom empires all the way down to dimension. Their American rivals will take pleasure in watching him.
Observe @petesweeneypro on Twitter
CONTEXT NEWS
Chinese language know-how conglomerate Alibaba introduced on March 28 that it’s planning to separate into six items and discover fundraisings or listings for many of them.
Enhancing by Robyn Mak and Thomas Shum
Our Requirements: The Thomson Reuters Belief Rules.
Opinions expressed are these of the creator. They don’t mirror the views of Reuters Information, which, underneath the Belief Rules, is dedicated to integrity, independence, and freedom from bias.
World
Iranian 'nuclear energy mountain' is 'fully safe' after Israeli strike: state media
Iranian nuclear sites are “fully safe” and have not been impacted by Israeli strikes, the country’s regime says.
Israel carried out limited strikes on areas of Iran early Friday in retaliation for Tehran firing a barrage of missiles and drones at Israel last Saturday.
The region surrounding the city of Isfahan — home to the country’s “nuclear energy mountain” — was among the areas targeted in the strike.
ISRAEL STRIKES SITE IN IRAN IN RETALIATION FOR WEEKEND ASSAULT: SOURCE
Isfahan is home to Iran’s Uranium Conversion Facility and three research reactors. The country’s underground Natanz enrichment site is also in the region.
Iranian state media stated following the attack that the nation’s atomic sites were “fully safe” and not struck by the missiles.
“The explosion this morning in the sky of Isfahan was related to the shooting of air defense systems at a suspicious object that did not cause any damage,” Iranian army commander Gen. Abdolrahim Mousavi said.
REPORTS OF ISRAEL’S RETALIATORY STRIKES AGAINST IRAN PROMPT REACTIONS FROM LAWMAKERS: ‘RIGHT TO DEFEND ITSELF’
The International Atomic Energy Agency, a United Nations affiliate watchdog organization, later confirmed “there is no damage to Iran’s nuclear sites.”
The agency said it “continues to call for extreme restraint from everybody and reiterates that nuclear facilities should never be a target in military conflicts.”
Details surrounding the intended target of the strike – if there was one – were not immediately available, but Fox News was previously able to confirm the target was “not nuclear or civilian.”
A senior Iranian official allegedly told Reuters that Iran has no plans to immediately respond to the Israeli strike, which was described differently in Iranian state media. The explosions heard in Isfahan were allegedly a result of the country’s air defense systems activating and not a missile attack, the official told Reuters.
Former Israel Defense Forces spokesman Jonathan Conricus wrote on X that while Iran appears to downplay the strike, he “think[s] they’ve gotten the message.”
Fox News Digital’s Bradford Betz, Jennifer Griffin and Elizabeth Pritchett contributed to this report.
World
No, the head of the World Economic Forum is not dead
Rumours have emerged online that the WEF’s executive chairman and founder, Klaus Schwab, has been hospitalised, arrested, and may even be dead. The Cube takes a look at where the false claims have come from.
Social media users have been claiming that the World Economic Forum (WEF) executive chairman and founder, Klaus Schwab, was recently admitted to hospital in a serious condition.
A large number of posts on X spreading the rumours have been seen and shared thousands of times. Some of them link his supposed condition to a cardiac incident after running, while others even go as far as claiming he may be dead.
None of these claims is true.
It seems like the allegations stemmed from satirical articles, such as this one from the website Weekly Crier.
It doesn’t provide any details about Schwab’s supposed hospitalisation, nor does it cite any sources.
The website’s own “About Us” page says that it posts “satire and comedic opinion pieces and editorials”, alongside supposedly “reliable and unbiased news and information”.
Not only that, the WEF has confirmed that Schwab is in perfectly good health.
The organisation has said that the claims are “entirely baseless and unfounded” and that Schwab’s health is “excellent”.
It added that, like many high-profile individuals and organisations, he has routinely been the target of conspiracy theories and misinformation campaigns.
They’re not wrong: the claims about Schwab’s health came in lockstep with other misleading allegations that the US Delta Force arrested Schwab at his home in Switzerland.
An article by website Real Raw News said that a Delta Force strike team apprehended Schwab after a “deadly firefight” in his house, and that he was found in bed connected to an adrenochrome infusion machine.
Once again, this appears to be an attempt at satire.
Real Raw News’s “About Us” page also says that the website contains “humour, parody and satire”, but that hasn’t stopped the claims from also doing the rounds on social media.
Various posts on X, Reddit and Facebook have all shared the allegations out of context, although some of them at least with a dose of scepticism.
The WEF hasn’t made any reference to an arrest, and a quick Google search for the story from more reliable news outlets doesn’t yield any results.
World
Israel attacks Iran, Reuters sources say; drones reported over Isfahan
WASHINGTON and DUBAI –
Israel has attacked Iran, three people familiar with the matter said, as Iranian state media reported early on Friday that its forces had destroyed drones, days after Iran launched a retaliatory drone strike on Israel.
One source told Reuters the U.S. was not involved but was notified by Israel before the attack.
Iran’s Fars news agency reported three explosions were heard near an army base in the central city of Isfahan. An Iranian official told Reuters there was no missile attack and the explosions were the result of the activation of Iran’s air defence systems.
Iranian state TV said that shortly after midnight “three drones were observed in the sky over Isfahan. The air defence system became active and destroyed these drones in the sky.”
The broadcaster later said the situation in Isfahan was normal and no ground explosions had occurred.
The Israeli military had no comment on the reports.
Israel had said it would retaliate against Iran’s weekend attack, which involved hundreds of drones and missiles, in response to a suspected Israeli strike on its embassy compound in Syria. Most of the Iranian drones and missiles were downed before reaching Israeli territory.
Analysts and observers have raised concerns about the risks of the Israel-Gaza war spreading into the rest of the region.
Iranian President Ebrahim Raisi had warned Israel before Friday’s strike that Tehran would deliver a “severe response” to any attack on its territory.
Iran told the United Nations Security Council on Thursday that Israel “must be compelled to stop any further military adventurism against our interests” as the UN secretary-general warned that the Middle East was in a “moment of maximum peril.”
Asian shares and bond yields sank on Friday while safe-haven currencies, gold and crude oil jumped. Brent crude futures rose two per cent to US$88.86 a barrel, the dollar gained broadly, rose one per cent and S&P 500 futures dropped one per cent.
Iran’s state television said nuclear facilities where Iran has been conducting work – which Tehran says is peaceful but which the West believes is aimed at building a weapon – were unharmed.
The Natanz nuclear site, the centrepiece of Iran’s uranium enrichment program, is in Isfahan province.
Airports in Tehran, Shiraz and Isfahan were closed until 7 a.m. GMT, subject to extension, and flights have been cleared from the western half of Iran, slight tracking website FlightRadar24 reported.
Some flights destined for Tehran from Turkish Airlines and Emirates were returning to their origin, FlightRadar24 said on X. An Iran Air flight from Rome to Tehran was diverting to Ankara, Turkey, it showed.
FlightRadar24 showed Emirates, flydubai, Turkish Air, Wizz Air Abu Dhabi and Belavia were among the carriers continuing to use the part of Iran’s airspace that remained open on Friday morning.
Israel’s assault on Gaza began after Palestinian Islamist group Hamas attacked Israel on Oct. 7, killing 1,200, according to Israeli tallies. Israel’s military offensive has killed over 33,000 Palestinians in Gaza, according to the local health ministry.
Iran-backed groups have declared support for Palestinians, launching attacks from Lebanon, Yemen and Iraq.
-
World1 week ago
Hope and anger in Gaza as talks to stop Israel’s war reconvene
-
News1 week ago
Arizona Supreme Court rules that a near-total abortion ban from 1864 is enforceable
-
Midwest1 week ago
Former Chicago Mayor Lori Lightfoot hired to investigate so-called 'worst mayor in America' at $400 an hour
-
Technology1 week ago
Adobe overhauls Frame.io to make it a little more Trello-like
-
World1 week ago
EU migration reform faces tight vote as party divisions deepen
-
Movie Reviews1 week ago
Civil War Movie Review: Alex Garland Offers ‘Dystopian’ Future
-
News1 week ago
For communities near chemical plants, EPA's new air pollution rule spells relief
-
News1 week ago
See Maps of Where Eclipse Seekers Flocked and the Traffic That Followed