Alibaba ready for possible trade war with US: Vice chairman Joseph Tsai

Chinese e-commerce giant Alibaba on Thursday said that the company is ready for a possible trade war with the United States, adding that it would not only survive the fight but will also thrive. This comes after the company reported its total earnings for the year.

"If US goods become too expensive due to tariffs, Chinese consumers can shift to domestic producers or imports from other parts of the world," CNN Money quoted Alibaba (BABA) Vice Chairman Joseph Tsai, as saying to analysts during an earnings conference call.

However, Tsai clarified that Alibaba does not want a trade war, as this would further deteriorate trade talks. He also said that the e-commerce giant would not face any difficulty in finding other markets for its products if the US becomes a tougher place for business.

"In terms of our international expansion, the world is a big place. We have made substantial progress in emerging markets like Southeast Asia and South Asia as these markets are ripe for us to add more consumers into our ecosystem," he said.

Omotenashi: The Japanese secret that's lost in translation all too often

Like “gemutlich” (a German adjective describing fireside coziness), the Japanese word “omotenashi” is hard to define but easy to picture. It’s a cashier greeting you nicely rather than chatting with colleagues and tossing your purchase across the counter -- an all-encompassing focus on service and caring professionalism. Long hailed as the epitome of Japanese quality, the concept is for the first time coming in for a beating. More and more Japanese are wondering whether human-scale omotenashi makes sense in an age when Alexa, Siri and Japan’s own robotics are seeking to provide a frictionless experience through technology. I’d argue that the term belongs in our vocabulary and, in fact, offers a key to growth and prosperity. Skeptics make a persuasive case. While the spirit of omotenashi contributes to high service quality, it requires higher labor intensity per output, fueling low productivity both in the service sector and in white-collar work overall. According to the Japan Productivity Center, the per-hour productivity of Japanese workers is only about two-thirds that of their American counterparts. Japan ranked 20th of 35 OECD countries in 2017 and has been stuck at the lowest level in the G-7 ever since the statistics became available in 1970.

Charging less than Rs 10/km, Indian airlines among world's cheapest five

Low-cost carriers IndiGo and Air India Express have been ranked among the top five cheapest airlines in the world in providing international connectivity.

Air India Express, the wholly-owned subsidiary of state-run carrier Air India has been ranked second and the budget carrier IndiGo placed at fifth position in a Global Flight Pricing Report prepared by Melbourne-based Rome2rio -- a multimodal travel planning site.

Two other Indian carriers also figured in the list. Jet Airways gained the 12th place followed by Air India at 13th position.

The report compared 200 major airlines across continents by the average price per kilometre with Air Asia X taking the pole position.

Air India Express, mostly connecting Gulf countries and Singapore, has an average cost of $0.08 per km and IndiGo $0.10 per km. The latter connects Indian cities with Gulf countries besides Bangkok, Colombo and Kathmandu.

Why Walmart's Flipkart acquisition is its admission of defeat in India

Walmart Inc. might want to portray its $16 billion purchase of India's largest e-commerce firm, Flipkart Group, as a brilliant strategic move, long-planned in secret, that would allow the U.S. retail giant to manage the transition away from big-box stores globally. Yet, the truth is that the deal represents a second-best outcome -- if that -- for Walmart as well as for Indian consumers and farmers.

In the 11 years that Walmart has operated in India, it’s signally failed to build up its own business. That’s not entirely the company’s fault. In fact, it’s a reminder that India remains, in some ways, as inhospitable to foreign businesses as the People's Republic of China.

For over a decade, successive Indian governments have denied permission to Walmart -- and peers such as Carrefour SA -- to open up their own stores. Foreign investors can enter into partnerships with local retailers -- Walmart had one with Bharti Enterprises Pvt. Ltd. -- but they can't control the consumer-facing end of the business, and their supply chains are subject to fearsome additional regulations. When foreign investment in supermarkets was finally permitted in 2012, for example, the previous government required any major, foreign-backed outlets to source 30 percent of the processed or manufactured goods they sold -- by value -- from tiny Indian enterprises worth less than $1 million apiece. The government also blocked companies such as Walmart from expanding into small-town India, restricting them to cities with populations over 1 million people.

Buffet dares Musk to beat his candy biz, SpaceX founder accepts challenge

Elon Musk recently took aim at the idea a successful business needs a “moat” -- a competitive advantage that keeps rivals at bay. The pace of innovation, he said, is more important in the long run.

On Saturday, Warren Buffett and his business partner, Charles Munger, shot back.

“Elon says a conventional moat is quaint, and that’s true of a puddle of water,” Munger, 94, said. “It’s ridiculous. Warren does not intend to build an actual moat. Even though they’re quaint.”

Munger and Buffett, 87, were responding to a question at Berkshire Hathaway Inc’s annual meeting about Musk’s comments this week. The pair often talk about trying to expand the “moats” around their businesses.

“First of all, I think moats are lame,” Musk said during an earnings call for his Tesla Inc. on May 2. “They’re like nice in a sort of quaint, vestigial way. But if your only defense against invading armies is a moat, you will not last long. What matters is the pace of innovation. That is the fundamental determinant of competitiveness.”

WPP shares fall 6% as company, investors adjust to post-Martin Sorrell era

WPP entered uncharted territory on Monday after the exit of founder Martin Sorrell left the world's biggest advertising company rudderless at a time of intense industry change.

Shares in WPP fell 6 percent after Sorrell, the driving force behind 33 years of dealmaking and relentless expansion, stepped down on Saturday after the board investigated an allegation of misconduct.

David Herro of Harris Associates, WPP's biggest shareholder according to Thomson Reuters data, said Sorrell would be missed.

"Sir Martin is a visionary, a legend in advertising and a skilful businessman," he said. "The circumstances surrounding this are regrettable as is a leadership transition without Sir Martin's involvement.

Elon Musk's Boring Company raises $112.5 million for hyperloop tunnels

Elon Musk's Boring Company has raised $112.5 million in equity, the firm said in a regulatory filing on Monday, as it seeks to build underground tunnels for its hyperloop transportation project.

Musk, who also leads electric vehicle maker Tesla Inc and rocket company SpaceX, is seeking to revolutionize transportation by sending passengers packed into pods through an intercity system of giant, underground vacuum tubes known as the hyperloop.

The funding comes about five months after Musk said the Boring Company would compete to fund, build and operate a "loop" to connect downtown Chicago with O'Hare Airport.

Musk had earlier sold Boring Company hats and flamethrowers to raise funds.

The Boring Company says tunnel-digging projects can cost as much as $1 billion per mile. Its goal is to lower these costs by a factor of 10 or more, its website says.

Bitcoin dealer in Finland plays cat and mouse with banks closing accounts

One of the Nordic region’s biggest Bitcoin dealers, Prasos Oy, has one lifeline left.
The company exchanges cryptocurrencies into euros, and relies on banks to help it with those transactions. But banks are increasingly saying no to Prasos and firms like it, for fear of getting into trouble with anti-money laundering rules. Prasos says it’s now waiting and hoping regulators will set clear guidelines that allow it to continue doing business.

Four banks in Finland, where Prasos is based, have already blocked its transactions, Chief Executive Officer Henry Brade said. The company can still access one bank account and now uses that for all its client money flows.
There’s no law telling banks in the Nordic nation how to treat cryptocurrency dealers. But there are anti-money laundering rules that stipulate lenders must know their customers and the origins of the funds they handle.

One of the selling points of cryptocurrencies has long been the anonymity they offer, which is a red flag for banks.

Electrolux to put $250-mn investment on hold after Trump's tariff proposals

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Sweden's Electrolux, Europe's largest home appliance maker, said on Friday it would delay a planned $250 million investment in Tennessee, after U. S. President Donald Trump announced tariffs on imported aluminium and steel.

On Thursday, Trump said the duties -- 25 percent on steel imports and 10 percent on aluminium -- would be formally announced next week, although White House officials later said some details still needed to be ironed out.

"We are putting it on hold. We believe that tariffs could cause a pretty significant increase in the price of steel on the U.

S. market," Electrolux spokesman Daniel Frykholm said.

Electrolux buys all the steel it uses in its U. S. products domestically.

"So this is not the possibility of tariffs directly impacting our costs, but rather the impact it could have on the market and that it could damage the overall competitiveness of our operations in the U. S.," Frykholm said.

The company is waiting to see the final details of the U. S. plans before making a final decision, he said.

Electrolux had said in January it would invest $250 million to expand and modernize its plant in Springfield, Tennessee.

Wall Street down even as US steel stocks jump on tariff expectations

Wall Street's main indexes fell on Thursday as industrial stocks, including heavyweights Boeing and Caterpillar, took a beating on fears that potential tariffs on steel imports could hit profits.

US President Donald Trump tweeted on Thursday that the US steel and aluminum industries need "free, fair and smart trade". CNBC reported that Trump will make an announcement on tariffs at 11 a.m. ET (1600 GMT).

Trump has vowed to take steps to crack down on imports of steel and aluminum and has been considering imposing hefty tariffs or quotas on imports of the metals from China and other countries under a national security law.
"I think the industrials are down as they use a lot of steel, and the uncertainty of what the tariff announcement could mean for them," said Ryan Detrick, Senior Market Strategist for LPL Financial.

Donald Trump suggests armed deputy at Florida school was a 'coward'

US President Donald Trump today cast doubts on the character of an armed deputy who remained outside during last week's school shooting in Florida, saying he froze or was a "coward".
"They're trained, they didn't react properly under pressure or they were a coward," Trump said, calling out Deputy Scot Peterson by name.
"He certainly did a poor job.

There's no question about that.

Gun control in US: Trump recommends ban on bump stocks used for weapons

United States President Donald Trump on Tuesday recommended a ban on 'bump stocks' gun devices.

He also directed his Attorney General, Jeff Sessions to make the proposed changes in the country's gun control law, in the wake of the last week's school shooting at a Florida high school.

"Just a few moments ago I signed a memo directing the attorney general Sessions to propose regulations that ban all devices that turn legal weapons into machine guns. I expect these regulations to be finalized very soon," Trump said.

The bump-stock gun modification was used in the Las Vegas shooting incident, which occurred in October last year. It claimed 58 lives and injured more than 500 people. It was the deadliest attack to ever take place on US soil, since the 9/11 attacks in 2001, the CNN reported.

China warns Trump trade sanctions on imports threaten global economy

US trade sanctions will hit the world economy, Beijing warned today, after President Donald Trump threatened to impose fresh tariffs on imports from China.
Trump said he was "considering all options," including tariffs and quotas, after he accused China of decimating the American steel and aluminium industries.

Washington has already imposed a range of tariffs on Chinese-made goods, sparking fears of a tit-for-tat trade war between the world's top two economies as China also threatens to take action.
Foreign ministry spokesman Geng Shuang told reporters that "any sign of unilateralism or protectionism will ... worsen global trade issues and will hurt the recovering momentum of the world economy".

He added that with the sheer volume of trade and integration between the US and Chinese economies, some friction was natural.

'An excited' Ivanka Trump reaches Hyderabad for GES 2017

Prime Minister Narendra Modi and US President Donald Trump's daughter Ivanka Trump will be inaugurating and addressing the Global Entrepreneurship Summit (GES) in Hyderabad today. Speaking a day ahead of the Global Entrepreneurship Summit (GES), Ivanka Trump said, "as the world's largest democracies... there is much we can and should do together. We share common priorities, including promoting economic growth and reform, fighting terrorism, and expanding security cooperation."

In an interview with TOI, Ivanka, adviser to the US President said, "In September, I had the honour of meeting with foreign minister Swaraj in New York City during the UN General Assembly. I shared with her that I have long admired India's history and culture, and my hope for continued progress, particularly as it relates to women. I look forward to continuing this conversation with Prime Minister Modi. I'm excited for my visit and hope to be back soon to see more of India."

NITI Aayog CEO Amitabh Kant called for providing greater impetus to women entrepreneurs, as this would be critical for India's growth.

"The summit comes at a time when the government is working on several initiatives to empower women in India, such as Beti Bachao Beti Padhao and others. This summit will witness women taking center stage in all fronts, including panel discussions. This summit has a majority of women participation (52.5percent), with over 10 countries being led by all-women delegation," Kant said at a joint press conference with US Ambassador to India Kenneth Juster.
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Paying CEOs with stock options doesn't drive business strategy: Research

The CEO pay of the United States’ biggest corporations is seen as the world benchmark. A large part of the way these executives are remunerated is through receiving stock options in the company they direct.

However our research shows that compensating executives in this way doesn’t necessarily lead to a higher payout of dividends to shareholders.

In dollar terms, average pay of CEOs of the US top 500 firms has increased from US$3 million in 1992 to US$12 million in 2016. A major contributor of this increase has been stock options.

For example, Thomas Rutledge, CEO of US telecommunications company Charter Communications received a US$98 million pay package in 2016. And 80% or US$78 million was in stock options.

A stock option is a financial contract that basically allows someone the right but not the obligation to buy a certain number of company shares in the future, at today’s market price. Thus, stock options allow CEOs to benefit if the company’s stock price rises, but not lose out if the stock price falls. Because in the latter case CEOs simply walk away from the transaction as the contract is not binding.
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