Tag Archives: TCOM

U.S. stops granting export licenses for China’s Huawei – sources

Jan 30 (Reuters) – The Biden administration has stopped approving licenses for U.S. companies to export most items to China’s Huawei, according to three people familiar with the matter.

Huawei has faced U.S. export restrictions around items for 5G and other technologies for several years, but officials in the U.S. Department of Commerce have granted licenses for some American firms to sell certain goods and technologies to the company. Qualcomm Inc (QCOM.O) in 2020 received permission to sell 4G smartphone chips to Huawei.

A Commerce Department spokesperson said officials “continually assess our policies and regulations” but do not comment on talks with specific companies. Huawei and Qualcomm declined to comment. Bloomberg and the Financial Times earlier reported the move.

One person familiar with the matter said U.S. officials are creating a new formal policy of denial for shipping items to Huawei that would include items below the 5G level, including 4G items, Wifi 6 and 7, artificial intelligence, and high-performance computing and cloud items.

Another person said the move was expected to reflect the Biden administration’s tightening of policy on Huawei over the past year. Licenses for 4G chips that could not be used for 5g, which might have been approved earlier, were being denied, the person said. Toward the end of the Trump administration and early in the Biden administration, officials had still granted licenses for items specific to 4G applications.

American officials placed Huawei on a trade blacklist in 2019 restricting most U.S. suppliers from shipping goods and technology to the company unless they were granted licenses. Officials continued to tighten the controls to cut off Huawei’s ability to buy or design the semiconductor chips that power most of its products.

But U.S. officials granted licenses that allowed Huawei to receive some products. For example, suppliers to Huawei got licenses worth $61 billion to sell to the telecoms equipment giant from April through November 2021.

In December, Huawei said its overall revenue was about $91.53 billion, down only slightly from 2021 when U.S. sanctions caused its sales to fall by nearly a third.

Reporting by Chavi Mehta in Bengaluru, Stephen Nellis in San Francisco, and Alexandra Alper and Karen Freifeld in Washington; Additional reporting by David Kirton in Shenzhen; Editing by Shailesh Kuber and Stephen Coates

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T-Mobile says investigating data breach involving 37 mln accounts

Jan 20 (Reuters) – T-Mobile (TMUS.O), the No.3 U.S. wireless carrier by subscribers, said on Thursday it was investigating a data breach involving 37 million postpaid and prepaid accounts and that it could incur significant costs related to the incident.

The company, which has more than 110 million subscribers, said it identified malicious activity on Jan. 5 and contained it within a day, adding that no sensitive data such as financial information was compromised.

However, some basic customer data — such as name, billing address, email and phone number — was obtained, and it had begun notifying impacted customers, said T-Mobile.

“Our investigation is still ongoing, but the malicious activity appears to be fully contained at this time, and there is currently no evidence that the bad actor was able to breach or compromise our systems or our network,” the company said.

The U.S. Federal Communications Commission (FCC) has opened an investigation into the data breach, the Wall Street Journal reported on Thursday, citing an FCC spokesperson.

FCC and T-Mobile did not immediately respond to Reuters’ requests for comment on the reported investigation.

“While these cybersecurity breaches may not be systemic in nature, their frequency of occurrence at T-Mobile is an alarming outlier relative to telecom peers,” said Neil Mack, senior analyst for Moody’s Investors Service.

“It could negatively impact customer behavior, cause churn to spike and potentially attract the scrutiny of the FCC and other regulators.”

Last year, T-Mobile agreed to pay $350 million and spend an additional $150 million to upgrade data security to settle litigation over a cyberattack in 2021 that compromised information belonging to an estimated 76.6 million people.

The Bellevue, Washington-based company’s shares fell 2% in after-hours trade.

Reporting by Eva Mathews and Lavanya Ahire in Bengaluru; Editing by Sriraj Kalluvila, Maju Samuel, Rashmi Aich and Savio D’Souza

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Brazil court grants bankruptcy protection for retailer Americanas

SAO PAULO, Jan 19 (Reuters) – A Rio de Janeiro court on Thursday accepted Brazilian retailer Americanas SA’s (AMER3.SA) bankruptcy protection request, days after the company disclosed nearly $4 billion in accounting inconsistencies that have sparked a legal feud with creditors and investors.

Americanas, a 93-year-old company with stores all over Brazil and a major e-commerce unit, said in a securities filing that it would restructure debts of about 43 billion reais ($8.2 billion).

Shares in the company plunged about 42.5% to 1.00 real following news of the filing, extending its year-to-date drop to around 90%.

The firm, backed by the billionaire trio that founded 3G Capital, said the move had come “despite the efforts and measures that the management has been taking in the past few days alongside its financial and legal advisers to protect the company from the effects” of the accounting scandal.

Investors had expected the decision, with some deeming it unavoidable, especially after lender BTG Pactual (BPAC3.SA) obtained on Wednesday a court decision overturning part of the firm’s protection from creditors.

Americanas is also facing seven different investigations launched by securities regulator CVM, as well as an arbitration process requesting compensation of 500 million reais to the firm and the trio that founded 3G Capital.

In a document filed with the court, law firms Basilio Advogados and Salomao Kaiuca Abrahao attributed the urgency in filing for bankruptcy to the creditors’ decision to seize the companies’ assets.

The retailer also mentioned a debt downgrade by ratings agencies, which prevented any new loans from being extended. S&P, Moody’s and Fitch all downgraded Americanas’ credit ratings following the accounting scandal.

Earlier, Americanas had said that its current cash position stood at only 800 million reais, down from a previously reported 7.8 billion.

Lucas Pogetti, a partner at M&A advisers RGS Partners, said a large part of Americanas’ previously disclosed cash position was linked to the prepayment of receivables or deposited with creditors.

“Naturally, when the banks became aware of the company’s real situation they began to adopt a more aggressive posture to protect themselves, consequently restricting access to resources,” Pogetti said.

In the filing, Americanas asks to exclude its fintech, Ame, from the bankruptcy protection, as it is regulated by the central bank, and for authorization to increase its capital.

Americanas’ stores are ubiquitous at Brazilian shopping malls. It e-commerce unit, which traded as a separate company before a recent restructuring, is one of the country’s top online retailers.

Chief executive Sergio Rial resigned last week, less than two weeks after taking the job, citing the discovery of “accounting inconsistencies” totaling 20 billion reais.

Rial, the former head of Banco Santander’s Brazilian arm (SANB3.SA), attributed the inconsistencies to differences in accounting for the financial cost of bank loans and debt with suppliers.

Chief financial officer Andre Covre, who had just joined Americanas as well, also left the firm, which has Brazilian billionaires Jorge Paulo Lemann, Carlos Alberto Sicupira and Marcel Telles as reference shareholders.

Americanas said the reference shareholders intended to maintain the company’s liquidity at levels that allowed for a “good operation” of its stores, digital channel and other entities.

($1 = 5.2226 reais)

Reporting by Gabriel Araujo, Tatiana Bautzer and Peter Frontini in Sao Paulo and Carolina Pulice in Mexico City; Editing by Rosalba O’Brien and Bradley Perrett

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Sony, Honda roll out prototype of ‘Afeela’ EV that uses Qualcomm tech

Jan 4 (Reuters) – Japan’s Sony (6758.T) on Wednesday unveiled a prototype of the new “Afeela” electric vehicles it will build together with Honda (7267.T), saying it would harness its vast entertainment content as it looks to become a player in next-generation cars.

Sony gave a glimpse of the Afeela, which sports rounded corners and a sleek black roof, at the CES 2023 technology trade show in Las Vegas. The car will use technology from hardware maker Qualcomm Inc (QCOM.O), including its “Snapdragon” digital chassis.

Sony’s long-awaited push into electric vehicles – it announced the venture with Honda in March – shows how manufacturers are increasingly focused on the cockpit experience in cars, which offers the potential to sell content via subscription services cars, especially as autonomous driving capabilities improve.

“In order to realise intelligent mobility, continuous software updates and high-performance computing are required,” Yashuhide Mizuno, the chief executive of Sony Honda Mobility, told the trade show. “To that end, we will work closely with Qualcomm.”

Qualcomm on Wednesday launched a new processor, the Snapdragon Ride Flex SoC, that handles both assisted driving and cockpit functions, including entertainment. Previously those functions were handled on different chips, and bringing them together can help bring down costs, a Qualcomm executive told Reuters.

Sony is also looking to harness its traditional strengths in sensors. The Afeela will be equipped with more than 40 sensors, Mizuno said. The car will use the “Unreal Engine” 3-D creation tool from Epic Games, the maker of the “Fortnite” series of games.

For Honda, the venture with Sony may allow it to speed up what has so far been a slow shift to electric. It has also struggled over the years to make gains in the luxury vehicle market with its Acura brand. The new EV will be priced at a premium, the venture has said.

The venture between Sony Group Corp and Honda Motor Co Ltd aims to deliver its first electric vehicles by early 2026 in North America.

Shares of Sony were up 1.6% in Tokyo trade, while Honda shares were flat. The benchmark Nikkei 225 (.N225) was little changed.

Reporting by Kiyoshi Takenaka; Additional reporting by Jane Lanhee Lee in San Francisco; Writing by David Dolan; Editing by Chang-Ran Kim and Muralikumar Anantharaman

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Power outage forces Philippines to suspend flights, shut airspace

  • More than 280 flights delayed, diverted on New Year’s Day
  • Transportation chief blames power outage for failure
  • System partially restored, airlines offer free rebooking

MANILA, Jan 1 (Reuters) – Philippine authorities halted flights in and out of Manila on New Year’s Day due to a malfunction of air traffic control, which also prevented airlines bound to other destinations from using the country’s airspace.

A total of 282 flights were either delayed, cancelled or diverted to other regional airports, affecting around 56,000 passengers at Manila’s Ninoy Aquino International Airport (NAIA), the airport operator said on Sunday.

It was unclear how many overflights were affected.

Transportation Secretary Jaime Bautista apologized for the inconvenience to passengers as he blamed a power outage for the breakdown of the central air traffic control system that also affected operations at other airports in the country.

He said the outdated existing facility should be upgraded immediately and that a back-up system was also needed.

“This is air traffic management system issue,” he said in a media briefing. “If you will compare us with Singapore, for one, there is a big difference, they are at least 10 years ahead of us.”

As of 0800 GMT, “the system has been partially restored thereby allowing limited flight operations”, the Manila International Airport Authority said in a statement. By late evening, eight flight arrivals and eight departures had been allowed, according to the airport operator.

Video clips and photos posted on social media showed long queues at the airport and airline personnel distributing food packs and drinks to stranded passengers.

“We’re told radar and navigation facilities at NAIA down. I was on my way home fm Tokyo – 3 hours into the flight, but had to return to Haneda,” tweeted one passenger – Manuel Pangilinan, chairman of Philippine telecommunications conglomerate PLDT Inc.

“6 hours of useless flying but inconvenience to travellers and losses to tourism and business are horrendous. Only in the PH. Sigh.”

Budget carrier Cebu Pacific (CEB.PS) and Philippine Airlines (PAL.PS) said they were offering passengers due to fly on Sunday free rebooking or the option to convert tickets to vouchers.

Reporting by Enrico Dela Cruz; Editing by Neil Fullick, Peter Graff and Alison Williams

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China’s Huawei sees ‘business as usual’ as U.S. sanctions impact wanes

SHANGHAI, Dec 30 (Reuters) – Chinese tech giant Huawei Technologies Co Ltd (HWT.UL) estimated on Friday its 2022 revenue remained flat, suggesting that its sales decline due to U.S. sanctions had come to a halt.

Despite sales increasing a mere 0.02%, rotating chairman Eric Xu struck an upbeat tone in the company’s annual New Year’s letter, where he revealed the figure.

“U.S. restrictions are now our new normal, and we’re back to business as usual,” Xu wrote in the letter that was addressed to staff and released to media.

Revenue for the year is expected to be 636.9 billion yuan ($$91.53 billion), according to Xu.

That represents a tiny increase from 2021, when revenue hit 636.8 billion yuan, and marked a 30% year-on-year sales tumble as the U.S. sanctions on the company took effect.

Xu’s letter did not mention Huawei’s profitability. The company typically discloses its full annual results in the following year’s first quarter.

Revenue for 2022 still remained well below the company’s record of $122 billion in 2019. At the time the company was at its peak as the top Android smartphone vendor globally.

In 2019, the U.S. Trump administration imposed a trade ban on Huawei, citing national security concerns, which barred the company from using Alphabet Inc’s (GOOGL.O) Android for its new smartphones, among other critical U.S.-origin technologies.

The sanctions caused its handset device sales to plummet. It also lost access to critical components that barred it from designing its line of processors for smartphones under its HiSilicon chip division.

The company continues to generate revenue via its networking equipment division, which competes with Nokia (NOKIA.HE) and Ericsson (ERICb.ST). It also operates a cloud computing division.

The company began investing in the electric vehicle (EV) sector as well as green technologies around the time sanctions took effect.

“The macro environment may be rife with uncertainty, but what we can be certain about is that digitisation and decarbonisation are the way forward, and they’re where future opportunities lie,” said Xu in the letter.

Reporting by Josh Horwitz; Editing by Muralikumar Anantharaman

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Twitter to relaunch Twitter Blue at higher price for Apple users

Dec 10 (Reuters) – Twitter Inc will relaunch a revamped version of its subscription service Twitter Blue on Monday at a higher price for Apple users, the company said in a tweet on Saturday.

The company said users could subscribe to the revamped service that will allow subscribers to edit tweets, upload 1080p videos and get a blue checkmark post account verification, for $8 per month through the web but for $11 per month through Apple iOS.

Twitter did not explain why Apple users were being charged more than others on the web but there have been media reports that the company was looking for ways to offset fees charged in the App Store.

Twitter had initially launched the Twitter Blue early in November before pausing it as fake accounts mushroomed. It was then scheduled to launch again on Nov. 29 but was pushed back.

Elon Musk, who took Twitter private for $44 billion in November had in a series of tweets last month listed various grievances with Apple, including the 30% fee the iPhone maker charges software developers for in-app purchases.

He had then accused Apple of threatening to block Twitter from its app store and also said that the iPhone maker had stopped advertising on the social media platform.

However, after a subsequent meeting with Apple chief executive Tim Cook, he tweeted that the misunderstanding about Twitter being removed from Apple’s app store was resolved.

Both Twitter and Apple did not respond to Reuters request for comments.

Reporting by Gokul Pisharody and Kanjyik Ghosh in Bengaluru; Editing by David Gregorio and Aurora Ellis

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Japanese billionaire Maezawa picks K-pop star TOP, DJ Steve Aoki to join SpaceX moon trip

TOKYO, Dec 9 (Reuters) – Japanese billionaire Yusaku Maezawa revealed on Friday that K-pop star TOP and DJ Steve Aoki will be among the eight crew members he plans to take on a trip around the moon as soon as next year, hitching a ride on one of Elon Musk’s SpaceX rockets.

Maezawa bought every seat on the maiden lunar voyage, which has been in the works since 2018 and would follow his trip on a Soyuz spacecraft to the International Space Station (ISS) for a 12-day stint last year.

The picks were announced by Maezawa on Twitter and at a website for what he dubbed the #dearMoon Project.

The fashion tycoon and his crew would become the first passengers on the SpaceX flyby of the moon as commercial firms, including Jeff Bezos’ Blue Origin, usher in a new age of space travel for wealthy clients.

The mission aboard SpaceX’s Starship vehicle is scheduled to take eight days from launch to return to earth, including three days circling the moon, coming within 200 kilometres from the lunar surface. Though the flight was scheduled for 2023, it is facing delays due to ongoing tests of the spacecraft and its rockets.

Like fellow billionaire Musk, Maezawa has a flare for promotion and an infatuation with Twitter — he has boasted to holding the Guinness world record for the most retweeted post, when he offered a cash prize of 1 million yen ($7300) to 100 winners for retweeting it.

Maezawa used the micro-blogging site to recruit eight crew members from around the world to join him on the moon trip, saying 1 million people had applied.

TOP, the stage name of Choi Seung Hyun who broke out with the K-pop group Big Bang, is among the higher profile members selected, along with Aoki, a Japanese-American musician and DJ whose father founded the Benihana restaurant chain.

“I feel great pride and responsibility in becoming the first Korean civilian going to the moon,” TOP said in a video posted after the announcement.

Indian actor Dev Joshi was also among the picks for the group, comprised largely of artists and photographers. U.S. Olympic snowboarder Kaitlyn Farrington and Japanese dancer Miyu were named as backup crew members.

Maezawa, 47, flagged an update to the lunar expedition on Monday, tweeting he’d held an online meeting with Musk and was readying a “big announcement about space.”

Maezawa made his fortune founding the online fashion retailer Zozo Inc (3092.T), in which Softbank Group Corp’s (9984.T) internet business is now the top shareholder.

($1 = 136.7600 yen)

Reporting by Rocky Swift; Editing by Leslie Adler and Sandra Maler

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U.S. bans Huawei, ZTE equipment sales citing national security risk

Nov 25 (Reuters) – The Biden administration has banned approvals of new telecommunications equipment from China’s Huawei Technologies (HWT.UL) and ZTE (000063.SZ) because they pose “an unacceptable risk” to U.S. national security.

The U.S. Federal Communications Commission said on Friday it had adopted the final rules, which also bar the sale or import of equipment made by China’s surveillance equipment maker Dahua Technology Co (002236.SZ), video surveillance firm Hangzhou Hikvision Digital Technology Co Ltd (002415.SZ) and telecoms firm Hytera Communications Corp Ltd (002583.SZ).

The move represents Washington’s latest crackdown on the Chinese tech giants amid fears that Beijing could use Chinese tech companies to spy on Americans.

“These new rules are an important part of our ongoing actions to protect the American people from national security threats involving telecommunications,” FCC Chairwoman Jessica Rosenworcel said in a statement.

Huawei declined to comment. ZTE, Dahua, Hikvision and Hytera did not immediately respond to requests for comment.

Rosenworcel circulated the proposed measure, which effectively bars the firms from selling new equipment in the United States, to the other three commissioners for final approval last month.

The FCC said in June 2021 it was considering banning all equipment authorizations for all companies on the covered list.

That came after a March 2021 designation of five Chinese companies on the so-called “covered list” as posing a threat to national security under a 2019 law aimed at protecting U.S. communications networks: Huawei, ZTE, Hytera Communications Corp Hikvision and Dahua.

All four commissioners at the agency, including two Republicans and two Democrats, supported Friday’s move.

Reporting by Diane Bartz and Alexandra Alper in Washington and Ismail Shakil in Ottawa; Editing by Caitlin Webber, Alexandra Alper and Lisa Shumaker

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Diane Bartz

Thomson Reuters

Focused on U.S. antitrust as well as corporate regulation and legislation, with experience involving covering war in Bosnia, elections in Mexico and Nicaragua, as well as stories from Brazil, Chile, Cuba, El Salvador, Nigeria and Peru.

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Elon Musk starts Twitter poll on whether to bring back Trump

Nov 18 (Reuters) – Elon Musk started a Twitter poll late on Friday asking followers to vote on whether to reinstate former U.S. President Donald Trump’s account on the platform, with early results showing roughly 60% voting yes.

“Vox Populi, Vox Dei,” Musk tweeted, a Latin phrase that roughly means meaning “the voice of the people is the voice of God.” The poll was open for 24 hours.

Musk, Twitter’s new owner, said in May he would reverse Twitter’s ban on Trump, whose account was suspended after last year’s attack on the U.S. Capitol.

Musk said earlier in the day that a decision to bring back Trump’s account was yet to be made, and that Twitter had reinstated some controversial accounts that had been banned or suspended, including satirical website Babylon Bee and comedian Kathy Griffin.

Musk’s decision to ask Twitter users for guidance on who should be on the platform is part of a huge restructuring of the company, including massive layoffs.

In a memo on Friday to remaining employees that was seen by Reuters, Musk asked those who write software code to report to the 10th floor of the Twitter’s headquarters in San Francisco by early afternoon.

The billionaire said in a follow-up email: “If possible, I would appreciate it if you could fly to SF to be present in person,” adding he would be at the office until midnight and would return Saturday morning.

He asked employees to email him a summary of what their software code has “achieved” in the past six months, “along with up to 10 screenshots of the most salient lines of code.”

“There will be short, technical interviews that allow me to better understand the Twitter tech stack,” Musk wrote in one of the emails, and asked engineers to report at 2 p.m. on Friday.

The emails came a day after hundreds of Twitter employees were estimated to have decided to leave the beleaguered social media company following a Thursday deadline from Musk that staffers sign up for “long hours at high intensity.”

The exodus adds to the change and chaos that have marked Musk’s first three weeks as Twitter’s owner. He has fired top management including former CEO Parag Agarwal and senior officials in charge of security and privacy, drawing scrutiny from a regulator.

A White House official also weighed in, saying Twitter should tell Americans how the company was protecting their data.

Tech website Platformer reported on Friday that Robin Wheeler, the company’s top ad sales executive, had been fired.

Wheeler, who told employees in a memo last week that she was staying, tweeted on Friday: “To the team and my clients…you were always my first and only priority”, with a salute emoji that has been adopted as a send off for departing employees.

Twitter told employees on Thursday that it would close its offices and cut badge access until Monday, according to two sources. Reuters could not immediately confirm whether the headquarters reopened.

On Friday afternoon, the company had started cutting off access to company systems for some of the employees who had declined to accept Musk’s offer, three people told Reuters.

Another source said the company was planning to shut down one of Twitter’s three main U.S. data centers, at the SMF1 facility near Sacramento, to save costs.

In his first email to Twitter employees this month, Musk warned that Twitter may not be able to “survive the upcoming economic downturn.” He also said, “We are also changing Twitter policy such that remote work is no longer allowed, unless you have a specific exception.”

Amid the changes, Moody’s withdrew its B1 credit rating for Twitter, saying it had insufficient information to maintain the rating.

Reporting by Hyunjoo Jin and Sheila Dang; Additional reporting by Katie Paul; Writing by Sheila Dang and Katie Paul; Editing by Jonathan Oatis, David Gregorio, Emelia Sithole-Matarise, Daniel Wallis, Sayantani Ghosh and Gerry Doyle

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