Month: February 2017

After drones, Amazon plans parachute drops for deliveries

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

Listen to the Article (6 Minutes)

Amazon’s idea for drone deliveries just keeps getting wackier.

The US e-commerce giant was awarded a patent earlier this week for a system in which a package would be “forcefully” propelled from an unmanned aerial vehicle (UAV) and would be helped to land by tools including a parachute.

“The package delivery system can apply the force onto the package in a number of different ways. For example, pneumatic actuators, electromagnets, spring coils, and parachutes can generate the force that establishes the vertical descent path of the package,” the filing from the US Patent and Trademark Office said.

Amazon drone would hover nearby, equipped with sensors and a camera, to make sure that the package would land in the intended area. If it was going off course, the drone could trigger the parachute or any other stabilizing mechanism to be deployed.

“In some examples, the deployment of all the parachutes may be staggered in time in order to change the descent path of the package,” the patent says.

Amazon’s plan could help it solve the issue of getting packages to small areas such as front porches.

“An ability to cause a package to descend through a vertical trajectory … Can be advantageous when attempting a delivery in an area with limited open space, such as an alley or a fenced back yard,” the patent filing explained.

Amazon has been trialling drone deliveries – known as Prime Air – in the UK and continues to be awarded patents as it figures out how to scale the system. It recently won a patent for a giant flying warehouse that acts as a launchpad for drones to deliver items within minutes. Amazon is awarded several patents many of which do not see the light of day.

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

Kraft Heinz to pursue merger despite Unilever rejection

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

Listen to the Article (6 Minutes)

US-based Kraft Heinz announced on Friday a proposed USD 143 billion merger with Unilever in what would be one of the biggest deals ever.

But the Anglo-Dutch consumer goods giant has declined, saying in a statement the offer fundamentally undervalues” the company.

“Unilever rejected the proposal as it sees no merit, either financial or strategic, for Unilever’s shareholders. Unilever does not see the basis for any further discussions,” the statement also read.

Nevertheless, Unilever shares were soared as much as 10 percent in premarket trading Thursday.

“While Unilever has declined the proposal, we look forward to working to reach agreement on the terms of a transaction,” Kraft said in a statement. “[But] there can be no certainty that any further formal proposal will be made to the Board of Unilever or that an offer will be made at all.”

Kraft is backed by private equity firm 3G Capital and Warren Buffett.

A deal with Unilever would add Hellmann’s mayonnaise, Ben & Jerry’s ice cream, and Knorr soups to a portfolio that includes Heinz ketchup and Kraft Macaroni and Cheese.

Consumer Edge Research’s Jonathan Feeney said that Kraft’s posturing is a traditional response to initial merger disagreements.

“It certainly sounds like a typical opening salvo of a merger approach,” the consumer staples analyst told CNBC’s “Squawk Box” on Friday. “It’s hard to tell at this point what’s actually friendly and unfriendly. Often times it’s standard procedure.”

But the deal would undoubtedly be a key strategic play for Kraft Heinz because it would broaden the company’s international scope, he said.

“What this does is a lot more than just margin opportunity,” he said. “You get Kraft Heinz into long-term growth opportunities structurally in developing markets that are very, very attractive.”

“The real structural growth opportunity is building those adoption rates of high-margin products all around the world,” he continued. “I think that’s what this transaction signals.”

Kraft Heinz has been expected to do a deal this year, given earlier reports that 3G’s Brazilian principals were raising a new fund.

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

Asia trades lower; Nikkei down 0.7%, Kospi down 0.4%

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

Listen to the Article (6 Minutes)

Asia markets opened lower on Friday, tracking losses in the US from the Thursday session, as Samsung Group shares were in focus following the arrest of its chief.

Jay Y. Lee was arrested early on Friday over his alleged role in a corruption scandal that led parliament to impeach President Park Geun-hye, according to Reuters.

Lee was taken into custody at the Seoul Detention Center, where he had awaited a court’s decision, following a day-long closed-door hearing that ended on Thursday evening, Reuters said.

Samsung and Lee have denied wrongdoing in the case.

In a statement after the arrest, a Samsung spokesperson said, “We will do our best to ensure that the truth is revealed in future court proceedings.”

Shares of the flagship business — Samsung Electronics — was down 0.4 percent at 1,894,000 Korean won. The won traded at 1,143.50 against the dollar.

Shares of Samsung SDI climbed 0.4 percent, Samsung Electro-Mechanics up 0.7 percent, Samsung C&T off by 2 percent and Samsung Engineering fell 2 percent.

The broader South Korean market was mixed, with the Kospi down 0.35 percent and the Kosdaq up 0.15 percent.

Elsewhere, Japanese shares were also lower, with the Nikkei Stock Average down 0.69 percent and the Topix off by 0.59 percent.

Japanese electronics company Sharp beat the broader index to trade up 1.86 percent at 328 yen, after the company revised its earnings estimates.

In a filing on Friday, Sharp said it expected operating income for the year ending March 31, 2017, to be 47.4 billion yen, up from its previous forecast of 37.3 billion yen.

Sharp also trimmed its expected losses for the year to 27.1 billion yen, from an earlier forecast of 37.2 billion yen.

Australia’s the benchmark ASX 200 traded down 0.24 percent, with the energy and materials sectors down 0.66 percent and 0.94 percent, respectively. The heavily-weighted financial sector was flat.

Major resources producers Down Under were off by more than 1 percent each. Shares of Rio Tinto fell 1.66 percent, Fortescue was off by 2.84 percent and BHP Billiton declined by 1.93 percent.

In the currency market, the dollar slipped against a basket of currencies to trade at 100.48, down from levels near 101.07 in the previous session.

“The constant rebuff on dollar rallies is a worrying sign that the market may be favoring positioning for a sudden wave of risk aversion,” said Stephen Innes, a senior trader at OANDA, in a note.

“Apparently, political jitters continue to override strong underlying economic sentiment in this current climate,” Innes added.

The yen traded at 113.25 to the dollar, strengthening from levels above 114 earlier in the week. The stronger yen sent most Japanese exporters lower, with
Toyota shares down 1.15 percent, Mitsubishi Electric off by 1.26 percent and Sony down 0.96 percent.

Elsewhere, the Australian dollar fetched USD 0.7691.

The session in Asia followed a slightly lower finish in the US on Thursday.

The Dow Jones industrial average finished near flat at 20,619.77, while the S&P 500 slipped 2.03 points, or 0.09 percent, to end at 2,347.22. The Nasdaq dropped 4.54 points, or 0.08 percent, to close at 5,814.

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

‘Unwise’ to wait too long to hike interest rates: Janet Yellen

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

Listen to the Article (6 Minutes)

Waiting too long to raise interest rates would be “unwise” as economic growth continues and inflation rises, Fed Chair Janet Yellen told Congress on Tuesday.

Repeating caution that she and other central bank officials have issued in recent months, Yellen said that even though the Fed expects to hike gradually and to keep policy accommodative, getting rates back to normal levels is important and hikes will be considered ahead.

Market reaction was prompt, with government bond yields jumping on sentiment that Yellen was teeing up next month’s Fed meeting as possible for a rate hike.

“By leaving March rate hike options open, Chair Yellen is sticking with her playbook with repeated reminders that every meeting is in fact a live meeting,” said Mark Hamrick, senior economic analyst at Bankrate.com.

The Fed kept its target overnight lending rate near zero for seven years and raised just twice since — in December 2015 and again a year later. The funds rate is currently targeted in the 0.5 percent to 0.75 percent range.

Traders do not expect the policymaking Federal Open Market Committee to hike at the March session. However, Yellen did say that increases would be evaluated “at upcoming meetings.”

“Waiting too long to remove accommodation would be unwise, potentially requiring the FOMC to eventually raise rates rapidly, which could risk disrupting financial markets and pushing the economy into recession,” Yellen said, according to prepared remarks of her semiannual report on monetary policy to the Senate.

When hiking at the December 2016 meeting, FOMC members indicated that three more increases are likely in 2017. Traders, though, are pricing in just two moves — in June and December. The likelihood for a March move is at just 18 percent, according to the CME.

“At our upcoming meetings, the Committee will evaluate whether employment and inflation are continuing to evolve in line with these expectations, in which case a further adjustment of the federal funds rate would likely be appropriate,” Yellen said.

Yellen deemed growth “moderate” amid a strengthening job market and inflation gradually moving up the Fed’s 2 percent target. She noted that business sentiment is improving but manufacturing is getting hit with a rising U.S. dollar.

Fiscal policy also presents an uncertainty, she said, as President Donald Trump is working with congressional Republicans to roll back tax rates for individuals and corporations and to cut regulations.

Yellen urged lawmakers to focus on long-term growth and productivity and to put the burgeoning US debt load on a “sustainable trajectory.” The national debt currently sits at USD 19.2 trillion, of which the public is responsible for USD 14.4 trillion.

“Of course, it is too early to know what policy changes will be put in place or how their economic effects will unfold,” she said. “While it is not my intention to opine on specific tax or spending proposals, I would point to the importance of improving the pace of longer-run economic growth and raising American living standards with policies aimed at improving productivity.”

The remarks touched little on how the Fed plans to unwind its mammoth USD 4.5 trillion balance sheet, a topic of increasing concern on Wall Street. She did indicate that the Fed plans to continue reinvesting proceeds from the government debt it holds.

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

Trump’s National Security Adviser Michael Flynn has resigned

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

Listen to the Article (6 Minutes)

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

Asia mixed; China January consumer inflation beats forecasts

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

Listen to the Article (6 Minutes)

Asian markets traded sideways on Tuesday, as an Australian survey revealed improved business conditions and China’s consumer inflation picks up strongly.

The Dow Jones industrial average posted its 22nd record close since November 8, up 0.7 percent at 20,412.16; the S&P 500 added 0.52 percent to close at 5,763.96, its 14th record close and also hit USD 20 trillion in market cap for the first time. The Nasdaq composite advanced 0.52 percent to finish at 5,763.96, led by Apple, which closed at an all-time high at USD 133.29.

“The focus remains on US equity markets, with the S&P 500 grinding higher yet again amid solid gains in financials, tech and industrial names,” said Chris Weston, chief market strategist at IG, in a Tuesday note.

Weston added that the rally may reverse once further details of the “phenomenal” tax plan are released.

Down Under, the ASX 200 was up 0.41 percent, supported by strong gains in the materials sub-index, which was up 0.75 percent.

A National Australia Bank’s January survey of more than 400 firms showed its index of business conditions was at highs last seen in the middle of 2007, as firms reported a pick up in sales and steadier profits.

Major Australian miners were higher, with Rio Tinto up 1.39 percent, Fortescue Metals adding 2.18 percent, while BHP BIlliton was up 0.57 percent.

Copper prices hit its highest levels since May 2015 overnight on limited supply after strikes at BHP Billiton’s Escondida and Freeport McMoran’s Indonesian Grasberg mine, Reuters reported.

Mainland Chinese shares were somewhat flat, as investors digested news that China’s consumer prices rose 2.5 percent in January on-year, its highest since May 2014. China’s producer price index also grew at 6.9 percent, the quickest pace since August 2011.

The Shanghai composite was down 0.06 percent and Shenzhen composite was 0.05 percent higher.

Hong Kong’s Hang Seng index was down 0.04 percent.

Japan’s Nikkei 225 fell 0.1 percent, as Japanese Finance Minister Tao Aso said that it may take some time for both Tokyo and Washington to set up a framework for bilateral economic dialogue.

Toshiba shares lost 3.84 percent after the Nikkei business daily reported that it may not be able to continue as a going concern, following massive nuclear-related losses.

South Korea’s Kospi fell 0.16 percent. South Korea Defense Ministry said the US and South Korea have agreed to deploy US strategic ex

Samsung heir Jay Y. Lee emerged from the South Korean special prosecutor office early Tuesday morning, as he is suspected to a bribery suspect in a political scandal, which has engulfed the country.

In corporate news, China’s state-owned Sinochem is in early talks with Noble Group to buy an equity stake in the troubled Singapore commodities trader, Reuters reported late on Monday. Shares of Noble Group soared 11.68 percent on Tuesday morning.

Oversea-Chinese Banking Corp. (OCBC), Singapore’s second largest listed bank, said net interest income fell 7 percent in the fourth quarter of 2016 to SUSD 1.25 billion with net allowances for loans and other assets of SUSD 305 million, a jump of 57% above SUSD 193 million in the same quarter a year earlier.

The bank said it continued to see loan quality stresses, particularly within the oil & gas sector which drove increases in non-performing loans and allowances with an “uncertain outlook and depressed oil prices particularly impacted oil and gas support services sector.”

The dollar is also having a moment, after it surged to a three-week high overnight and hovered at 101.01 against a currency basket during Asian trade.

Against the greenback, the yen slipped to 113.75 at 7:00 a.m. HK/SIN, weaker compared to last week’s low around 111. The Australian dollar was steady at USD 0.7638.

The National Australia Bank business confidence survey and lending finance data are due out of Australia. China’s consumer price index and producer price index for January are also on tap. Federal Reserve Chair Janet Yellen is due for her semi-annual testimony before congress.

During Asian trade, Brent crude futures recovered from the overnight 2 percent drop, to trade up 0.25 percent at USD 53.06 a barrel, while US crude added 0.23 percent at USD 53.06.

On Monday during US hours, crude oil prices tumbled by around 2 percent on the stronger dollar and indications of rising US shale output, Reuters reported.

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

S&P hits $20 trillion in market cap for first time

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

Listen to the Article (6 Minutes)

US stocks rose on Monday, notching fresh record highs, as investors remained bullish on President Donald Trump’s economic agenda.

The Dow Jones industrial average rose about 100 points, with Goldman Sachs contributing the most gains. The S&P 500 gained 0.4 percent, with financials leading advancers. The index also reached USD 20 trillion in market cap for the first time ever. It needed to break above 2,324.22 to reach the milestone, according to data from Howard Silverblatt,

The index also reached USD 20 trillion in market cap for the first time ever. It needed to break above 2,324.22 to reach the milestone, according to data from Howard Silverblatt, senior Index analyst at S&P Dow Jones Indices.

“The SPX extended its uptrend to a new all-time high last week, resolving another consolidation phase to the upside,” said Katie Stockton, chief technical strategist at BTIG, in a note. She added that “short-term overbought conditions are not likely to be a near-term hindrance, particularly given the widespread breakouts that have occurred.”

The Nasdaq composite advanced 0.5 percent.

“There is a bullish bias remaining in the market after Trump said there will be a phenomenal tax plan coming,” said Nick Raich, CEO of The Earnings Scout. “I think investors don’t want to be on the wrong side of that if the plan is as phenomenal as he says it is.”

Last week, Trump said his administration will be announcing a “phenomenal” tax plan over the next two or three weeks. Since then, equities have continued to grind higher into record territory.

“There is some momentum buying here on the resurgence of the Trump trade,” said Peter Cardillo, chief market economist at First Standard Financial, noting that stocks in Europe and Asia also traded higher on Monday.

Stocks had already rallied sharply since Trump’s election on hopes of not just corporate tax cuts, but also deregulation and government spending. But before last week’s break to new highs, US equities had traded mostly sideways for more than a month as investors searched for clues about when these proposals would become reality.

There are no major economic data due Monday, but investors will be looking ahead to Federal Reserve Janet Yellen’s testimony on Capitol Hill, slated for Tuesday.

“The Fed’s statement on February 1 didn’t provide any additional clues on monetary policy direction, and as of last week, markets were only pricing in 13.3 percent chance for a rate hike in March and 23.7 percent in May,” said Hussein Sayed, chief market strategist at FXTM, in a note. “… it’s going to be interesting on which side will Yellen move the needle.”

On the earnings front, Restaurant Brands International, Teva Pharma and First Data were among the companies posting quarterly results before the bell. Arch Capital Group, Noble Energy, Vornado Realty and OneMain Holdings are all due to report after the market close.

US Treasurys traded lower Monday, with the benchmark 10-year note yield rising to 2.445 percent and the short-term two-year note yield advancing to 1.214 percent. The dollar rose against a basket of currencies, with the euro near USD1.062 and the yen around 113.86.

Overseas, European equities traded mostly higher, with the pan-European Stoxx 600 index advancing 0.63 percent. In Asia, stocks closed higher, with the Nikkei 225 rising 0.41 percent and the Shanghai composite gaining 0.63 percent.

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

Fed could take the wheel from Trump and drive markets this week

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

Listen to the Article (6 Minutes)

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

Workers in Asia are more unhappy than the global average: Survey

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

Listen to the Article (6 Minutes)

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