This week ahead || May 6th - May 10th 2024
Here's is your news for the week ahead.
The ending of Google's monopoly trial has Silicon Valley on edge
In a landmark antitrust case, Google is facing allegations from the Justice Department and 14 states that it illegally monopolized the online search and search advertising markets. Google's lawyer argues that the company is winning because it's better, but the government claims Google violated antitrust laws by blocking competitors from entering the search market. If the government prevails, it could threaten billions of dollars in mutually lucrative contracts between Google and Apple, as well as deals with other device manufacturers and telecom companies. A breakup of Google's contractual arrangements could benefit rival search engines and mobile manufacturers, opening the door to new competition in the market. However, the judge overseeing the case, Amit Mehta, has pushed back on arguments from both sides, questioning the feasibility of new rivals entering Google's market under the current conditions. The outcome of the case, which will be decided in the weeks or months to come, could also be impacted by the results of the upcoming presidential election.
Foxconn reiterates Q2 revenue to grow, posts record April sales
Taiwan's Foxconn, the world's largest contract electronics manufacturer and the primary assembler of Apple's iPhone, expects a rise in second-quarter revenue, citing a transition period between old and new products. The company reported record sales of T$510.9 billion ($15.83 billion) for April, a 19% year-on-year increase, with significant growth in smart consumer electronics like smartphones and strong demand for AI servers in its cloud and networking products segment. Despite a 9.6% revenue decline in the first quarter, Foxconn anticipates growth in the second quarter, with its earnings call scheduled for May 14. The company's optimistic outlook follows Apple's better-than-expected quarterly results, signaling a potential rebound in revenue growth for the current quarter. Foxconn's shares have surged nearly 50% this year, outperforming the broader market.
France's Macron set to press China's Xi on trade, Ukraine
French President Emmanuel Macron is expected to urge Chinese President Xi Jinping, who is visiting Paris on Sunday for a rare trip, to address trade imbalances and use his influence with Russia regarding the conflict in Ukraine. Macron's hopes may face challenges amid growing trade disputes between Europe and China, including probes into Chinese electric vehicle exports and French brandy imports. Macron emphasized the need for reciprocity in economic exchanges and consideration for Europe's economic security. Xi's visit includes talks with Macron and European Commission chief Ursula von der Leyen, but divisions within the EU, particularly between France and Germany, may undermine the bloc's influence over China. France also aims to address issues related to agricultural exports and intellectual property rights in the cosmetic industry. While France seeks Chinese support to halt Russian operations in Ukraine, progress has been limited, although Xi made his first call to Ukrainian President Volodymyr Zelenskiy shortly after Macron's visit to Beijing last year. Macron will also take Xi to the Pyrenees, a region significant to him, before Xi continues his trip to Serbia and Hungary, both of which have close ties with Russia.
Berkshire's Brooks Running CEO sees China, Europe as growth areas
The new CEO of Brooks Running, Dan Sheridan, sees China and Europe as key growth areas for the company, which is owned by Warren Buffett's Berkshire Hathaway. Brooks plans to open its first store in China this fall and views China as a long-term strategic market due to its significant running participation. European markets are also showing signs of revival after challenges caused by the Russia-Ukraine war and rising energy costs. Sheridan, who succeeded Jim Weber, believes Brooks is well-positioned to capitalize on the growing number of runners globally, with plans to double sales by 2031. Despite challenges like supply chain disruptions, Brooks remains focused on innovation, with new products like the $160 Glycerin 21 featuring nitrogen-infused cushioning.
