Month: September 2014

ECB action: Next catalyst for emerging markets?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The European Central Bank (ECB) is back in “whatever it takes” mode to stimulate the sputtering economy and Asian markets are set to benefit, say strategists.

“The added euro zone liquidity will not find easy outlets in Europe. Bonds are expensive; the German and French 2-year note yields dropped below zero. Some funds will flow into periphery bonds; some into equities and hold their breath,” Uwe Parpart, chief strategist at Reorient Group wrote in a note on Friday.

“But a good deal of liquidity will be outbound,” he said.

The ECB surprised investors on Thursday,cutting interest rates to record lows and announcing a program to buy asset-backed securities and covered bonds starting in October.

As the strengthening US dollar makes US stocks less attractive to foreign buyers, the added liquidity will flow into Asia, said Parpart, highlighting China and Japan in particular.

“As the US dollar gains, the yen  declines — that`s [Nikkei] positive, [especially] if the BOJ (Bank of Japan) also eases further. Meanwhile, the China rally continues and is supported both by still-low valuations and varieties of financial regulatory measures,” he said. Chinese stocks are up over 9 percent year to date; Japanese equities, however, are down 3.5 percent.

The benchmark Shanghai Composite and Nikkei 225 traded up 0.5 percent and 0.2 percent, respectively, on Friday.

 Dariusz Kowalczyk, a senior economist and strategist at Credit Agricole, agrees emerging market assets stand to benefit from the ECB`s policy move.

“ECB plans to boost the size of its balance sheet by almost half should have some spillover effects in terms of capital flows into EMs, supporting Asian equity markets,” he said.

This also means a rally of Asian currencies against the euro, he added.

With European interest rates at record lows, the euro will likely become a popular carry trade, with investors funding investments in higher yielding assets including emerging market currencies.

“What we`re seeing is liquidity is set to ramp up, volatility is still low and as a result carry structures are still in place,” said Weston.

“Now we say, what`s our funding currency? It`s clearly the euro, no other currency. And then we ask where can I get yield? And you want to be long emerging markets, the Australian dollar , and high yielding Latin American currencies,” he said.

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Did Samsung do enough to challenge iPhone 6?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Samsung attempted to differentiate itself in the smartphone market with its latest offerings, the Galaxy Note Edge and Galaxy Note 4, but analysts say it isn`t enough to frighten Apple.

The South Korean technology giant on Tuesday rolled out the 5.6-inch Edge – which features a curved screen that wraps around the edges of the device allowing for a different set of information displays independent from the main screen. It also showed off the 5.7–inch Note 4, which can be paired with a new virtual reality device called the Gear VR.

The launch precedes a highly-anticipated Apple event on September 9, when it`s widely expected to unveil the iPhone 6 and possibly a wearable device touted as the iWatch.

“Samsung is headed in the right direction introducing new technology like the curved display, but the products itself aren`t threatening to Apple,” said Tom Kang, managing director, Mobile Devices at Counterpoint Technology.

“The Edge doesn`t steal the limelight from the iPhone 6, but it will make product engineers at Apple think about moving towards adopting similar technology in the future,” he said.

Sources have said that Apple will likely unveil larger 4.7-inch and 5.5-inch screens for the new iPhones – far larger than the current 4-inch iPhone 5s – the first time the firm has introduced different sized models simultaneously.

This is significant, says Kang, as it gives consumers more choice within Apple`s product offerings.

Despite this, Apple`s shares slipped 4.2 percent on Tuesday following the launch of Samsung`s new smartphones. Shares of Samsung, meanwhile, gained 2 percent on Wednesday.

Nevertheless, other tech experts agreed the products are no game changer for Samsung.

Rob Enderle, president and principal analyst at Enderle Group, noted that the Edge`s signature feature, a curved display, does not have apps that support the display.

Samsung requires third party app developers to support the Edge display, say analysts. This may prove challenging because Samsung offers this display on just one handset, meaning few app developers may choose to support it unless the company pays them to tailor their apps.

Same goes for the Note 4`s Gear VR, Ederle said, “it requires games to make the VR headset that goes with it work.”

On top of this, the phone itself is just a straight evolution of the 2013`s Note 3, says Ian Fogg, head of mobile analysis at IHS Technology.

“The screen is the same physical size. There are minor adjustments to sharpen the industrial design. Plus Samsung continues to improve screen quality and offer a content and services bundle. But there is little in the Note 4 which will change the trajectory of Galaxy Note shipments,” said Fogg.

Apple`s shadow continues to hang over Samsung`s Note announcements, Fogg added.

The iPhone maker has already seen people placing orders and camping outside its flagship store in New York City ahead of next week`s event.

“As Android market leader, Samsung has most to lose from stronger Apple competition. With the Note, Samsung is choosing to emphasize the stylus as a way of countering Apple. This will not be enough,” he said.

“Samsung will have to spend to support its brand and operator distribution channels to maintain its market share,” he said.

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India in 2020: the factory of the world?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As China looks to wean its economy off a heavy dependence on investment and exports, India is embarking on the very same growth model that could see the South Asia nation assuming the role of the world`s factory floor within the next decade.

Prime Minister Narendra Modi has articulated in recent speeches and through policy actions that Asia`s third largest economy is in need of a growth model which centers on export-oriented manufacturing, heavy infrastructure building and urbanization.

“This suggests a shift from India`s current services-driven growth trajectory to an East Asian growth model based on the mass deployment of labor and capital,” Sanjeev Sanyal, global strategist at Deustche Bank wrote in a report.

If India succeeds, it has the potential to become the factory of the world, Sanyal said in an interview with CNBC, a role assumed by China in the past decade.

“As China gets off the model, it creates space for a country like India, with cheaper labor, to become a manufacturing hub,” he said.

The East Asian growth model is a well-trodden path by countries from Japan to China to generate and sustain rapid economic expansion.The paradigm, however, has eluded India, which leaped from an agriculture-focused to a service-dominated economy, by passing a manufacturing-led growth phase.

Manufacturing accounts for 15 percent of India`s gross domestic product (GDP), while the services sector contributes about 60 percent.

“It`s all good to have the software industry and Bollywood, but it doesn`t generate enough jobs. You have this peculiar situation where 60 percent of the economy is generated by services, but it only employs 28 percent of the workforce. Agriculture, which is 14 percent of the economy, accounts for 50 percent of employment,” he said.

“This has led to the feeling that the services-led economic boom has disproportionately benefited the old `English-speaking` middle class but not those aspiring to join the middle-class through hard work and education,” he added.

India is in urgent need of generating employment due to its expanding working age population. Between 2015 and 2020, the working age population will rise from 804 million to 856 million. This requires 10 million additional jobs per year till the next elections to keep up with demographic expansion.

Growth model challenges

To be sure, the transition to the East Asian growth model won`t be an easy one.

Mobilizing and deploying a large pool of capital will be a key aspect of the new growth model. This will require a rapid expansion of the financial and banking system.

Modi has put in place a target of opening 75 million new bank accounts by January 2015. While the primary purpose of this is to enable direct transfers of subsidy payments to the poor, it could play a big role in mobilizing savings in the long run, Sanyal said.

In addition to the vast amount of capital, the East Asian model requires a mass deployment of labor. This could prove to be challenging given the rigid labor laws and the fact that cities are not prepared to absorb the millions of industrial workers needed to feed the growth machine, Sanyal noted.

But should the model take off, the bank says it would prove to be a “major turning point in the lives of 1.2 billion people and would have very significant ramifications for the world economy.”

Not all agree that moving to an export-oriented manufacturing growth model is the right direction for India.

Jahangir Aziz, chief India economist at JP Morgan raises the question of whether India can really be a cheaper manufacturing base than China and other Asian neighbors such as Sri Lanka and Bangladesh.

“India has never been that cost effective because of labor laws,which make it difficult to hire and fire at will,” he said.On top of this, countries like China have far superior infrastructure in place that reduces the cost of transportation of goods from the manufacturing location to the port.

“India can invest in this infrastructure, but it will take time and the question is, would it be better to spend money in trying to improve the competitiveness of the services sector, seeing as services are the fastest growing part of people`s consumption basket,” he said.

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

With ECB in focus, euro downtrend looks strong

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Charts suggest that the downtrend in the euro/dollar is firm ahead of the European Central Bank`s (ECB) policy meeting on Thursday.

A decline in euro zone inflation to a five-year low in August amplified dovish comments by ECB president Mario Draghi at the Jackson Hole central bankers` meeting.

Draghiacknowledged that inflation expectations have been falling at the August meeting and said the ECB, “within its mandate, will use all of the available instruments needed to ensure price stability over the medium term.”

The developments fueled speculation that the ECB will consider easing action as early as Thursday with some analysts arguing that a quantitative easing – or bond buying – is on the horizon.

Growing expectations for ECB easing saw the euro/dollar decline decisively below USD 1.34 in August, marking a significant downtrend confirmation. The USD 1.34 level has acted as a long-term support and resistance, defining price activity starting in December 2011.

The pair has remained in a broad trading band since September 2012; USD 1.34 is in the middle of this band.

The upper edge of the trading band is near USD 1.40, a level defined by support and resistance activity in 2010 and 2011. Starting in September 2013 the euro/dollar traded in the upper section of the trading band between USD 1.34 and USD 1.40. In May 2014 it briefly touched the top of the trading band and then started a new prolonged downtrend.

The width of the upper section of the trading band is projected downwards to set the lower edge of the trading band near USD 1.28. This level provided support in November 2012, and March, May and July 2013. This is a significant and well-tested support level.

There is minor support and resistance near USD 1.31 that helps define the development of the downtrend.

Price activity between USD 1.34 and USD 1.40 had relatively low volatility, while activity between USD 1.28 and USD 1.34 had more rapid volatility moves. This suggests that a fall below the minor support near USD 1.31 can move rapidly to test lower support near USD 1.28. Traders will be ready to add to short trades when the euro/dollar moves below USD 1.31.

Any rebound from USD 1.31 meets trend line resistance near USD 1.33, the current value of the downtrend line. There is a low probability that the pair will rise above the downtrend line. Traders who are not in the market will wait for the rally to hit the downtrend line and then take short side trades with a downside target near USD 1.28.

The key feature of trading behavior on the weekly chart is the higher degree of volatility between USD 1.28 and USD 1.34. Falls can be very rapid. Once support near USD 1.28 is reached traders will tighten stop loss to protect profits. The reason is that the historical behavior shows there is often a very fast rally rebound from USD 1.28. This fast rebound behavior developed in November 2012, and May and July 2013. Future rebounds from USD 1.28 will first find resistance at the value of the downtrend line and then at the long-term support resistance level near USD 1.34.

In the short-term traders will trade from the short side and followed the downtrend move towards support near USD 1.28.

Daryl Guppy is a trader and author of Trend Trading, The 36 Strategies of the Chinese for Financial Traders – www.guppytraders.com. He is a regular guest on CNBCAsia Squawk Box. He is a speaker at trading conferences in China, Asia, Australia and Europe.

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

The wait is over for dollar bulls

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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US dollar bulls are enjoying their moment in the sun after a trying start to the year, and analysts told CNBC the good times could continue.

The greenback strengthened to a seven month high against the yen in early trade on Wednesday, while the US dollar index, which tracks the dollar`s value against seven major currencies, has rallied nearly 4 percent since the beginning of July on positive US economic sentiment. On Tuesday, the index hit an over one-year high of 82.930, following lackluster performance in the first four months of the year when it slumped 1.2 percent.

Expectations that US monetary policy will continue to diverge from policy in Europe and the UK will send the dollar index higher as investors price in a US rate hike, according to Capital Economics.

“The dollar is now the strongest it has been against the other major currencies in over a year. But we doubt its rally is over given the relative prospects for monetary policy in the US and elsewhere,” analysts at Capital Economics, wrote in a note published Monday.

“By end-2015, we expect the dollar to have strengthened further to USD 1.25 against the euro, to USD 1.60 against sterling, and to 120 yen,” they added.

The greenback was trading at USD 1.3121 against the euro (Exchange: EUR1M=), USD 1.6584 against sterling (Exchange: GBP1M=) and at 104.81 yen (Exchange: JPY10Y=) on Tuesday.

Diverging policy

The Federal Reserve sparked rate hike speculation in mid-2013 when it unveiled plans to taper its quantitative easing program. But the timing of a rate hike remains uncertain.

Last month`s Fed minutes showed some policy committee members want to hike rates promptly amid improvements in the economy. Yet, most members feel that more data are required before taking action.

By contrast, European policy looks dovish. Expectations for a Bank of England rate hike this year faded amid concerns over weak wage growth, while the European Central Bank is widely expected to pursue quantitative easing.

“We now broadly concur with the market`s view about the future path of interest rates in the UK following the recent change to market expectations. And we also agree with the widely-held view that rates in the euro-zone will remain at rock-bottom for a long while yet,” said Capital Economics.

“Nonetheless, we continue to think that investors are being too sanguine about the outlook for interest rates in the US and that the Fed will tighten monetary policy more aggressively than most envisage as a strengthening labor market puts upward pressure on wage inflation,” the analysts added.

The mighty greenback

“Our central view is that the dollar will continue to move higher,” said Ray Attrill, co-head of FX strategy at National Australia Bank.

If the Fed adopts a slightly more hawkish tone at its next meeting investors could begin pricing in a rate hike in the second quarter of 2015 rather than the second half, boosting the greenback, he said. “The next Fed meeting is potentially going to be the catalyst for a fresh lift higher.”

However, he acknowledged downside risks: “If the statement this month [is] a carbon copy to the June comment – if they repeat that language the risk there is that the front end of the US curve will move to price out some of the 2015 tightening that it`s been pricing in in the recent weeks.”

Standard Chartered`s Callow expects the dollar index to rally through year-end, but said the dollar would not do as well against some major Asian currencies.

“Our forecast is USD 1.27 for euro and 106 for dollar-yen motivated by a better economic performance in the US, in contrast with weaker performance in Japan and the euro zone,” he said. “It comes down to better fundamentals.”

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

World economy faces jobs, growth risks: IMF’s Zhu

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Growth and job creation are the major challenges for the global economy while the low interest rate environment presents a risk, the International Monetary Fund`s (IMF) deputy managing director Zhu Min told CNBC on Tuesday.

It`s important for central banks to keep interest rates low amid weak global growth but the rise in risk appetite amid ample liquidity is a concern, Zhu said.

“We see long-term uncertainty for the people looking for yield… or for the returns in the market,” said Zhu. “[It`s] important to observe the risks associated with low interest rates.”

Interest rates at major central banks including the Federal Reserve, the European Central Bank and the Bank of England are currently at record lows.

The two biggest economies

The timing of a Fed rate hike has been the subject of much debate this year. It`s uncertain whether the Fed will act in the first or second half of 2015 but whatever happens, Zhu doesn`t expect the central bank to take markets by surprise.

“I don`t think we will see rates rising very soon and very quickly because growth is still relatively weak,” he said. “Growth inthe first half of the year was surprisingly weak.”

Meanwhile, Zhu seemed upbeat on the Chinese economy despite IMF director Christine Lagarde`s warning of a potential hard landing in April.

“Overall the Chinese economy runs quite well, and we expect the Chinese growth rates for this year [at] roughly from 7.2 to 7.5 [percent],” he said, noting that low inflation of 2.3 to 2.4 percent would help.

China set a 2014 growth target of 7.5 percent at the National People`s Congress in May. Talk of a `hard landing` began last year as China`s transition away from a manufacturing-led economy weighed on growth and increased this year amid mixed economic data, though few agree on what would constitute a hard landing.

Ukraine “on track”

Separately, Zhu also told CNBC that Ukraine is on track with conditions of the organization`s loan program.

On Friday, the IMF signed off on its first review of Ukraine`s USD17 billion loan program, unveiled in May, releasing USD 1.4 billion in fresh funds.However, it warned of looming risks should tensions between Ukraine and Russia escalate.

Anti-government protests in February saw the overthrow of Ukrainian president Viktor Yanukovych and paved the way for Russia`s annexation of Crimea in March. Political and military turmoil continue to afflict Ukraine, dragging the economy and undermining the currency.

Still, Ukraine is making good progress with most of its loan obligations, especially in facilitating economic reforms, Zhu said.

“The government is open to take on and carry out structural reforms to promote further growth. I think that`s very important, for us to work together to ensure the program is on track continuously,” he said.

“At this moment, I think the debt restructuring and the debt re-profiling are not on the table,” he added.

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Does the Modi euphoria have a sell-by date?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Euphoria surrounding India’s new government and strong economic data continues to power stocks higher, but some analysts warn the nation’s economic fundamentals don’t support further gains.

“This might be as good as it gets for some time,” said Shilan Shah, an economist at Capital Economics, noting India’s second quarter growth data was welcome news.

Gross domestic product (GDP) grew 5.7 percent on-year in the second quarter, data released last week showed, up from 4.6 percent in the previous quarter and the fastest pace since the first quarter of 2012.

Meanwhile India’s balance of payments was in surplus for a third consecutive quarter, data showed on Tuesday.

Excitement over the promise of Prime Minister Narendra Modi who came into power in May coupled with improving economic data is pushing Indian stocks higher.

The Sensex and Nifty surged to fresh record highs on Tuesday. Both indices are up 27 percent year to date, making India’s stock market Asia’s best performing in dollar terms this year, but whether stocks can sustain their rise is questionable.

Headwinds abound

Those betting that Modiphoria will continue to drive stocks could be disappointed.

The government’s budget pledge last month to reduce the deficit to 4.1 percent of GDP from 4.5 percent this fiscal year requires significant spending cuts that will drag the economy, Shah said.

Persistently high inflation is another headwind. Under Governor Raghuram Rajan the Reserve Bank of India aims to bring inflation below 8 percent by January 2015 and 6 percent the following year. Taming inflation isn’t easy, however. Consumer-price inflation accelerated to 8 percent on-year in July from 7.3 percent in June; at the going rate inflation could limit the central bank’s ability to boost growth through looser monetary policy, Shah said.

Lackluster progress on Modi’s promised reforms on bureaucratic delays, a rigid labor market and poor infrastructure could exacerbate economic headwinds, Shah added.

“As such, growth is unlikely to exceed more than 5-5.5 percent over the next couple of years,” Shah said, well below the 7-8 percent the government targeted in three to four years in its budget.

Kindred views

Monsoon season is expected to yield the lowest rainfall in four years, reducing crop output and boosting inflation through higher food prices, which is another cause for concern according to Taimur Baig, Deutsche Bank’s chief economist for Asia.

“We have uncertainty about what’s happening with agriculture because of this highly unpredictable monsoon,” he said, noting a monsoon-related disruption in power production could also stifle output, while fiscal and monetary policies are likely to remain tight.

“Then there’s the issue of lackluster external demand from US and EU. for all of Asia; Indian exporters will have to deal with that as well,” he added.

However, despite these headwinds, Baig said Modiphoria won’t end anytime soon.

“Euphoria translates into more spending and consumption always adds to GDP. This is a fairly seismic change in political leadership, I think market participants will be fairly patient for the time being, there will be a prolonged honeymoon period,” he said.

Not all agree. In July, high profile industry commentator Mark Mobius warned that Indian stocks face a correction once the honeymoon ends as the pace of reform will likely prove disappointing.

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Here’s how iPhone 6 can boost China

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The iPhone 6 is expected to provide a much-needed boost not only for Apple sales but also for Greater China`s export sector.

Widely expected to be launched on September 9, Apple`s iPhone 6, rumored to havea bigger screen, new features and slimmer design, is touted as a “game changer” for the smartphone market.

“[The] iPhone is an American product but is made in China. The iPhone 6 could be the most anticipated Apple smartphone ever, with interest easily outstripping that of the iPhone 5S and iPhone 5,” Ting Lu, chief China economist at Bank of America Merill Lynch (BofA-ML) wrote in a note.

“Sales of iPhone 6, thanks to its expected large scale, could even impact macro indicators in those countries involved in making it,” Lu said.

The iPhone 6 could add about 1 percentage point per month to Chinese export growth for the rest of 2014, while Taiwan`s export growth could get an around 2 percentage points boost per month during August-October and 1 percentage point per month from November 2014-January 2015, according to the bank`s calculations.

“Export growth of China and Taiwan was only 4.9 percent and 4.4 percent [on-year] in 2Q14 respectively, so a boost of 1 to 2 percentage points to headline export growth is no small matter, especially for the currency market which closely track export growth numbers,” Lu said.

Taiwan`s economy provides a significant number of components for Apple smartphones, while China is primarily involved in the device`s assembly, the bank said.

“Taiwan especially stands out for its strength in the semiconductor sector, where the next generation A8 processor for iPhones is being produced. We thus reckon that Taiwan`s exports will also be lifted when these valuable components are shipped to China or other assembly locations,” Lu said.

Taiwanese manufacturers are estimated to provide about USD 25 worth of inputs for each upcoming iPhone 6, equivalent to around 12 percent of the phone`s total cost, according to the bank`s estimates.

“That said, not all Taiwanese component makers who are key suppliers to iPhone 6 will contribute to Taiwan`s exports simply because some of them have already relocated their manufacturing bases to mainland China,” he added.

Louis Kuijis, chief China economist at RBS says judging by the headwinds facing Chinese exports, a boost from iPhone shipments would be a welcome development.

China is grappling with tepid demand from both emerging and developed markets, as such the recent pick up in exports is unlikely to be sustained over the remainder of the year, he said.

China`s exports accelerated 14.5 percent on year in July, nearly double the 8 percent growth forecast by economists.

Copyright 2011 cnbc.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

A look at Modi and Abe’s Twitter bromance

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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One look at Indian Prime Minister Narendra Modi’s Twitter feed and that of Japanese counterpart Shizno Abe and you’d think they were long lost pals.

The last few days have seen a stream of tweets from Modi – who is currently on his five-day Japan tour – and Abe, professing their mutual admiration.

This is the first major foreign visit by the Indian leader since he took the helm in May.

Read More There’s more to Modi-Abe ties than China

“Very enjoyable to have dinner together with PM Modi last night,” Abe tweeted on Saturday from Kyoto – the first stop on Modi’s visit.

“Looking forward to seeing PM Modi again in Tokyo tomorrow.” he added. Modi is among the four people Abe follows on Twitter.

And the love was by no means unrequited.

 Judging by their enthusiasm, Modi’s visit to Japan has fortified economic and security ties between the countries.

“Both of us are very optimistic about scripting a new chapter in the strong bond between India & Japan, which will benefit our nations,” Modi tweeted.

“Here’s to a long-lasting friendship b/w our two countries,” the Government of Japan responded on its Twitter page.

Strengthening ties between New Delhi and Tokyo come amid growing concern over China’s ascendancy and increasing assertiveness in defense of its national interests.

Read More India and Japan send signal with bear hug

The two leaders agreed on Monday to strengthen defense ties and accelerate talks on the possible sale of an amphibious aircraft to India’s navy – likely to become Japan’s first overseas military sale in nearly 50 years. They also announced an agreement on the manufacture and supply of rare earth chlorides, a key element of defense industry components and hi-tech wares, by India to Japan.

There were signs of on increasing economic cooperation too, with Japan vowing to double investment in India over the next five years to a total of 3.5 trillion yen (USD 33.6 billion).

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Apple says it is ‘actively investigating’ celeb photo hack

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Apple said it was “actively investigating” the violation of several of its iCloud accounts, in which revealing photos and videos of prominent Hollywood actresses were taken and posted all over the Web.

“We take user privacy very seriously and are actively investigating this report,” said Apple spokeswoman Natalie Kerris.

Photos, some real, some said to be fakes, are said to have been taken from the iCloud accounts of several celebrities, such as actress Jennifer Lawrence. They were posted to the Web image-sharing community 4Chan and have since spread across the Web, showing up on social media sites like Twitter, Reddit and elsewhere.

Security experts said the hacking and theft of revealing pictures from the Apple iCloud accounts of a few celebrities might have been prevented if those affected had enabled two-factor authentication on their accounts.

Apple hasn’t yet said anything definitive about how the attacks were carried out, but security researchers at Mandiant, a unit of the security firm FireEye, examined the evidence that has emerged so far, and said it appears to have been was a fairly straightforward attack. That said, it is also one that could have been thwarted had some additional steps to secure the targeted accounts been taken.

That additional step is known as two-factor authentication. Apple calls it “two-step verification,” although it doesn’t work very hard to tell people about it, said Darien Kindlund, director of threat research at Mandiant.

“In general Apple has been a little late to the game in offering this kind of protection, and doesn’t advertise it,” he said. “You have to dig through the support articles to find it.”

When enabled, two-factor authentication requires users to enter a numerical code that is sent to their phone or another device, in addition to using their regular password. Since the number constantly changes, it makes it much more difficult for an attacker to gain access the account, even if they know the password.

Assuming the compromised accounts were running without the two-step option turned on, it would then have been relatively easy for the attacker to gain access to the accounts.

Read More: Are banks or retailers more secure?

As The Next Web reported earlier today the attack may be linked to software on GitHub called iBrute that is capable of carrying out automated brute-force attacks against iCloud accounts. In this scenario, an attacker simply guesses a password again and again until they succeed. While tedious and time-consuming for a person, it’s a simple and infinitely faster process for a computer.

The as-yet unknown attacker had one other thing going for him: Apple allows an unlimited number of password guesses. Normally, systems limit the number of times someone can try to log in to a system with an incorrect password before the account is locked down entirely. Apple has since fixed that aspect of the vulnerability.

“The attackers never should have been allowed to make an unlimited number of guesses,” Kindlund said.

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And while there’s no direct evidence tying the program to the attack, the timing of the incident appears to coincide with a talk given by security researchers on the subject of security on iCloud. See the slides here.

A program called iBrute was created by security researchers in Russia as a proof of concept and demonstrated as part of a talk a security conference in St. Petersburg earlier this month.

It’s not the first time that this sort of thing has happened, nor will it be the last. Back in 2005, socialite Paris Hilton was the target of a hacking attack in which pictures and text messages from her Sidekick smart phone were pilfered from a cloud storage account. A group of young men were prosecuted over that incident and another attack against the database giant LexisNexis, and most of them served time in federal prison or juvenile detention.

—By Arik Hesseldahl, Re/code.net.

CNBC’s parent NBC Universal is an investor in Re/code’s parent Revere Digital, and the companies have a content-sharing arrangement.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow