Trump blocks Broadcom’s bid for Qualcomm on security grounds
US President Donald Trump has blocked a planned takeover of chipmaker Qualcomm by Singapore-based rival Broadcom on grounds of national security. His order cited “credible evidence” that the proposed $140 billion deal, which would have been the biggest technology sector takeover on record, “threatens to impair the national security of the US”. There were concerns the takeover could have led to China pulling ahead in the development of 5G wireless technology. US lawmakers have raised ongoing concerns around Chinese telecom firms doing business with US carriers. Broadcom said it was reviewing the order and “strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns”. (BBC)
China to merge regulators, create new ministries in biggest overhaul in years
China is merging its banking and insurance regulators, giving new powers to policymaking bodies such as the central bank and creating new ministries in the biggest government shake-up in years. The long-awaited move to tighten oversight of China’s $42 trillion banking and insurance sectors comes as authorities seek more clout to crack down on riskier lending practices and reduce high corporate debt levels. “The biggest news is still about the merger of the financial regulators. The central bank will be in charge of the macro supervision side, while the merged regulators will be responsible for the more concrete part of things,” said Zhou Hao, senior emerging markets economist at Commerzbank. China will also form a national markets supervision management bureau, responsible for pricing supervision and anti-monopoly law enforcement. (Reuters)
Corporate Reputation
Report: False emissions ratings cost UK more than £2 billion a year
False emissions ratings for cars based on lab tests have cost the UK more than £2 billion a year in lost tax revenue, according to a report for the Green Party. With CO2 emissions exceeding official measures by an average of 42%, millions of vehicles have been placed in tax bands that do not reflect their true levels of pollution. The analysis shows estimates the lost tax revenue at more than €10 billion across 11 EU countries last year, with the UK one of the main losers due to its large car fleet and graded tax system. The estimated loss is based only on new vehicles registered since 2010, which make up around half of the cars now on the road. (Guardian)
Energy
UK and Saudi Arabia sign clean energy partnership
The controversial UK visit of Saudi Arabia’s Crown Prince Mohammed bin Salman has culminated in a new clean energy agreement between the two countries, as the UK sought to underline the role it can play in supporting the Gulf State’s renewable energy plans. The agreement covers a wide range of clean energy technologies, including smart grids, electric vehicles, and Carbon Capture Usage and Storage, as well as renewables. Saudi Arabia’s Minister of Energy, Industry and Mineral Resources has said that this agreement will support the country’s Vision 2030 clean energy plan, which aims to diversify the state’s energy mix away from a heavy reliance on oil and gas. (BusinessGreen)
Technology & Innovation
Flying taxis, backed by Google founder, tested in New Zealand
A flying car start-up backed by Google founder Larry Page has been secretly testing an electric autonomous aircraft for several months in New Zealand, the company revealed on Tuesday. Silicon Valley-based Kitty Hawk hopes its Cora aircraft will form the basis of an airborne taxi service in the next few years, after it began testing in New Zealand late last year. Kitty Hawk, which is named after the location of the Wright brothers’ early flight trials, has been funded by Mr Page personally, outside the Alphabet group. Kitty Hawk envisages eventually operating a service “similar to an airline or a rideshare”. The company has received an “experimental airworthiness certificate” for Cora in New Zealand and the US. The company has not commented further on its plans or tests in the US market. (Financial Times*)
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