Global shares mostly lower…Hitachi to acquire US company
TOKYO (AP) – Global shares are mostly lower despite data pointing to a strong economic recovery in China, as worries linger about the pandemic. In early trading, France’s CAC 40 inched down less than 0.1%, while Germany’s DAX also fell less than 0.1%. Britain’s FTSE 100 slipped 0.4%. In Asian markets, Japan’s Nikkei closed 0.9% lower. South Korea’s Kospi fell 0.3%, Hong Kong’s Hang Seng slipped 0.7% and the Shanghai Composite shed 0.4%. U.S. shares are set for a slow start, with Dow and S&P 500 futures both down 0.1%.
WASHINGTON (AP) – President Joe Biden wants $2 trillion to reengineer America’s infrastructure and expects the nation’s corporations to pay for it. The Democratic president travels to Pittsburgh today to unveil what would be a hard-hatted transformation of the U.S. economy. It includes $621 billion for roads, bridges and transportation infrastructure. The plan would also move the country away from fossil fuels to clean energy. It would be financed by raising the corporate tax rate from 21% to 28%, among other measures. That could lead to fierce resistance from the business community and thwart attempts to work with Republicans lawmakers.
TOKYO (AP) – Japanese industrial, electronic and construction conglomerate Hitachi Ltd. says it is buying U.S. digital engineering services company GlobalLogic Inc. for $9.6 billion. Tokyo-based Hitachi says the acquisition of the Silicon Valley company will strengthen Hitachi’s digital operations in a wide range of businesses, including IT, energy, industry and mobility. GlobalLogic has more than 20,000 professionals in 14 countries, operating design studios and software product engineering centers. The deal was expected to close by the end of July, subject to regulatory approval. Companies around the world are working to adapt to the rapidly digital changes going on in various industries.
LONDON (AP) – Shares of app-based meal delivery service Deliveroo tumbled by as much as a third in their U.K. stock market debut today. The London-based company’s shares slid even after they were priced at the bottom of the potential range, reflecting investor wariness and broader market turbulence for tech-related stocks. Demand was also hurt after a number of leading U.K. fund managers said they would abstain from investing amid concerns about working conditions for its delivery riders and its shareholder structure. Deliveroo competes with Uber Eats and its backers include Amazon.
BEIJING (AP) – Chinese tech giant Huawei says it eked out a gain in sales and profit last year but growth plunged after U.S. sanctions damaged its smartphone business. China’s first global tech brand reported sales rose 3.8% over 2019 to 891.4 billion yuan ($135.8 billion), down from the previous year’s 19.1% growth. That was propelled by a 15.4% gain in China, while sales of phones, network gear and other technology in other markets shrank. Its chairman, Ken Hu, says in a statement: “We’ve held strong in the face of adversity.” The results reflect the damage from U.S. sanctions and point to a future perhaps focused on China, where sales of network and other technology are less vulnerable to foreign pressure.