scrutiny

Amazon’s treatment of sellers comes under scrutiny in Germany
Germany's antitrust authority has launched an investigation into whether US e-commerce giant Amazon is exploiting its market dominance in its relations with third-party retailers who use its website as a marketplace. [...]
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SoftBank’s Son sees profit surging amid scrutiny over Saudi ties
SoftBank’s Son sees profit surging amid scrutiny over Saudi ties Tokyo • SoftBank Group Corp founder Masayoshi Son is starting to see the benefits of his enormous technology investments — along with the scrutiny that comes from taking money from Saudi Arabia. SoftBank reported second-quarter profit of ¥706 billion (RM25.85 billion), far exceeding analyst estimates, thanks to multibillion dollar gains from his many deals. SoftBank shares rose as much as 4% in Tokyo yesterday. Yet, Son also faced repeated questions during a post-earnings briefing in Tokyo about his relationship with Saudi Arabia, the biggest investor in his US$100 billion (RM417 billion) Vision Fund. Son has been remaking SoftBank from primarily a telecommunications operator into a technology investment firm. His investments contributed ¥393 billion to profit in the quarter, more than all the other businesses combined. The company cited increased valuations of India’s online hotel start-up OYO Rooms and graphics card maker Nvidia Corp among its gains. “The Vision Fund is showing profits worthy of SoftBank 2.0,” Son said at a briefing in Tokyo. “Next year, I believe we will not only exceed these results, but may even deliver an operating profit on the level that Japan has never experienced before.” SoftBank reported earnings that exceeded the highest of analyst estimates compiled by Bloomberg. The profit surge was driven by gains from investments in technology companies. Son proactively addressed the controversy over a murdered Saudi journalist and his company’s relationship to the kingdom’s government. Still, he faced repeated questions about the issue. Son also said that SoftBank will proceed with an initial public offering (IPO) for its Japanese wireless business and vowed that he would maintain profits by cutting costs. SoftBank has faced criticism over its relationship with Saudi Arabia in the wake of the murder of government critic Jamal Khashoggi by Saudi agents. The kingdom contributed US$45 billion to the Vision Fund as Son forged personal ties to Saudi Crown Prince Mohammed Salman, whose associates have allegedly been implicated in the killing. Son began his Tokyo press conference by addressing the murder, his first public comments on the incident. He said he pressed the Saudis to get to the bottom of the Khashoggi killing and hold the guilty accountable. However, he said SoftBank will continue to use Saudi money for investments because he has an obligation to help the country diversify its economy. “It is a terrible tragedy that should not have occurred,” he said. “On the other hand, we have accepted an investment from the citizens of Saudi Arabia. It is an important investment for the economic diversification of Saudi Arabia, to get their economy away from depending solely on crude oil. We cannot turn our backs on the Saudi people.” Son’s proactive comments didn’t end the scrutiny. He faced several questions about the Saudi relationship and what the possible implications of the investigation are. As for the financial results, they showed that predicting Vision Fund contributions on a quarterly basis remains a challenge for investors and analysts. The fund benefitted as its stake in OYO doubled in value to about US$200 million, while shares of Nvidia rose 19% last quarter. SoftBank also saw a surprise profit at Sprint Corp, the US wireless operator that it is planning to sell. “The earnings numbers themselves are extraordinary,” said Mana Nakazora, chief credit analyst in Tokyo at BNP Paribas SA. “Perhaps, it can’t be helped due to accounting procedures, but it is becoming harder to understand where the profits are coming from.” Son went on to explain that his Vision Fund is capitalising on a surge of innovative technology companies. The fund has backed 60 unicorns — start-ups worth US$1 billion or more — in the past two years, he said. He then took time at the briefing to highlight a few of the promising start-ups in his portfolio. He joked, however, that he didn’t have enough time to talk about all the strong companies. SoftBank is aiming to raise capital to be able to keep making investments in tech start-ups. The company is planning an IPO for its domestic telecom operation, which may raise ¥3 trillion. It has the potential to be the largest such offering ever — with about 30% of the equity to be listed on the Tokyo Stock Exchange on Dec 19, people with knowledge of the matter said last month. But the plans have come into question after NTT Docomo Inc, Japan’s biggest mobile carrier, said it may cut rates 40% and “return” ¥400 billion to customers. That sparked a sell-off among the country’s three major wireless operators, which lost a combined US$34 billion the day following the announcement. Son said the competition won’t hurt his company’s profits. He said SoftBank aims to cut costs by trimming about 40% of the wireless business workforce, largely by introducing automation technology. Some employees will be reallocated to other parts of SoftBank. “I can make a commitment right here that profit and revenue in the mobile business will continue to grow,” Son said. SoftBank shares had climbed 29% from the start of the year through their peak in late September, but they gave up all of those gains since amid the negative news and a decline in technology stocks. Son was also asked whether the Saudi relationship had prompted any start-ups to say they wouldn’t accept Saudi money. He responded by saying he didn’t know of any cases — and there was clear evidence to the contrary. One of the questions he fielded in Tokyo was from a Brazilian entrepreneur who wanted to know whether Son would be interested in hearing more about his country — and his financial technology start-up. “We are always open,” Son said with a smile. — Bloomberg var VUUKLE_EMOTE_SIZE = "90px"; VUUKLE_EMOTE_IFRAME = "180px" var EMOTE_TEXT = ["HAPPY","INDIF [...]
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Martin O'Neill defiant in the face of rising scrutiny over Republic of Ireland job
O'Neill remains unbowed in the face of increasing pressure after Tuesday night's home defeat by Wales left Ireland on the brink of relegation from Nations League B [...]
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After Jho Low’s jab, WSJ says 1MDB issues subject to scrutiny
Earlier, a spokesman for the billionaire known as Jho Low claimed WSJ only believes in sources who advance its storyline in the upcoming book written by its journalists, while ignoring facts that get in the way of the book’s themes. — Picture by Yusof Mat Isa KUALA LUMPUR, Aug 17 — Financial daily Wall Street Journal (WSJ) defended today its coverage of on-the-run broker Low Taek Jho and 1Malaysia Development Bhd (1MDB), following accusation that it was aimed at promoting its own book on the topic.“The Wall Street Journal has a longstanding tradition of tough, ethical and fair journalism with high standards that have been the newspaper’s hallmark for over a century,” the American publication said in a statement.“The many investigations and other activity pertaining to 1Malaysia Development Berhad are the subject of legitimate public interest and serious journalistic scrutiny. Given that, we will continue to cover the story as we have and in the same responsible manner.  “As always, we are open to talking with anyone who has questions, especially significant figures in ongoing news stories,” it said.Earlier, a spokesman for the billionaire known as Jho Low claimed WSJ only believes in sources who advance its storyline in the upcoming book written by its journalists, while ignoring facts that get in the way of the book’s themes.WSJ reported today that Low is being harboured by China, quoting Malaysian officials.Malaysia does not have an extradition treaty with China.Two of the journalists who reported on the piece — Bradley Hope and Tom Wright — will be releasing a book on Low and 1MDB next month, titled Billion Dollar Whale: The Man Who Fooled Wall Street, Hollywood, and the World. [...]
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Pembinaan PFI’s dealings under MACC’s scrutiny
PV’s debt is said to total RM50.2b — the largest debt under committed govt guarantees By AZREEN HANI / Graphic By TMR The Malaysian Anti-Corruption Commission (MACC) is investigating the operations and deals related to a government-owned special-purpose vehicle (SPV), Pembinaan PFI Sdn Bhd, for any possible breaches. The SPV, created in 2006 as a wholly owned unit of the Ministry of Finance (MoF), had accumulated debts of around RM50 billion. It is part of the government’s massive RM1 trillion total borrowings which include contingent liabilities. Bangi MP Ong Kian Ming (picture) confirmed he had briefed MACC officers over Pembinaan PFI based on what he had gathered on the SPV, which had an initial seed fund of RM20 billion from the Employees Provident Fund (EPF). “I was asked to brief and explain to them upon their request on what I have gathered so far on Pembinaan PFI. My role is to help facilitate the investigation by the authorities,” Ong told The Malaysian Reserve. It is estimated that Pembinaan PFI’s debt stands at RM50.2 billion — the largest debt under committed government guarantees. Ong had earlier shared on Twitter that he had submitted all of his press statements to MACC. “I passed all my press statements and reports on Pembinaan PFI to @SPRMMalaysia this morning upon their request. Hope a thorough investigation will follow…” Little is known about Pembinaan PFI except it was created to source for funding to finance government-related projects. It took a five-year loan of RM20 billion from the EPF in 2007, paying interest charges of the Malaysian Government Securities (MGS) rates plus 0.5%. It was reported that the EPF restructured the loan after the full drawdown and at the end of the five-year, term-loan period. Based on the available financial statement for 2014, Pembinaan PFI held a total debt of RM28.75 billion. Despite the worrying debt, Ong said Pembinaan PFI and 1Malaysia Development Bhd (1MDB) have different circumstances. “Basically, this company (Pembinaan PFI) is an example of the waste in which the previous administration tried to shift development expenditure into the operational expenditure (opex),” he said, shielding the debts from falling into the official borrowing category. He said it was one of the the previous government’s “creative” ways to hide development expenditure in order for it not be accounted as the official government debt. “I have always maintained there is a need to review all MoF Inc entities to ensure issues like this will not recur in the new government,” said the international trade and industry deputy minister. Ong reiterated that despite the high debt level, the government will continue to service Pembinaan PFI’s financial obligations. “The government has to service Pembinaan PFI’s debt interests, such as to the EPF and KWAP (Retirement Fund Inc). That’s what we have to do.” The previous administration had maintained the country’s debt was below the 55% threshold of the gross domestic product. Contingent liabilities and government guarantees were omitted from the equation. The Pakatan Harapan government, however, revealed the total debt was RM1 trillion, raising alarm on the country’s financial health. Malaysia is already saddled with 1MDB’s billions of debts. Other agencies which have accumulated debts guaranteed by the government are Perbadanan Tabung Pendidikan Tinggi Nasional and Lembaga Pembiayaan Perumahan Sektor Awam. var VUUKLE_EMOTE_SIZE = "90px"; VUUKLE_EMOTE_IFRAME = "180px" var EMOTE_TEXT = ["HAPPY","INDIFFERENT","AMUSED","EXCITED","ANGRY","SAD"]The post Pembinaan PFI’s dealings under MACC’s scrutiny appeared first on The Malaysian Reserve. [...]
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China's ambitions in eastern Europe to face scrutiny at summit
SOFIA/BERLIN/BRUSSELS (July 4): China meets central and eastern European leaders on Saturday for a summit where Beijing's promises of big infrastructure deals will come under... [...]
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