Posts in category Business


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Expedia buys HomeAway for $3.9B because Airbnb

Travel booking site Expedia has agreed to buy publicly traded vacation rental company HomeAway for $3.9 billion, the companies announced today. It’s a big deal partly because it validates the growth of rapidly expanding startup Airbnb. HomeAway operates vacation rental site VRBO, which some people think of as an alternative to Airbnb. Now Expedia is […]


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BusinessFacebookFacebook NewsFacebook Q3 2015

Facebook beats Q3 2015 expectations with $4.5B in revenue and an EPS of $0.57

Facebook has released its Q3 2015 earnings, saying that it generated $4.50 billion in revenue and non-GAAP earnings per share of $0.57. “We had a good quarter and got a lot done,” said chief executive Mark Zuckerberg. “We’re focused on innovating and investing for the long term to serve our community and connect the entire world,” […]


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ApprovedBusiness

Take-off delayed

Boarding begins in 2019, maybe

SINCE the 1990s the global market for full-sized commercial airliners has been a duopoly. The market, which by some estimates will be worth $4.6 trillion over the next 20 years, is dominated by Airbus, a European firm, and Boeing, its American competitor. But in theory, at least, airlines will soon have a wider choice of planes. On November 2nd COMAC, a Chinese state-owned planemaker, revealed its C919 plane (pictured, next page), a competitor to Airbus’s A320 and Boeing’s 737, the two most popular airliners in the skies. COMAC says the C919 will have its maiden flight next year—two years later than first scheduled—and enter service around 2019.

The Chinese are not the only ones who think they can break the duopoly. After several delays, Irkut, part of Russia’s state-owned United Aircraft Corporation (UAC), hopes to launch its MC-21 aircraft, another potential rival to the 737 and A320, into service in 2017.

Many aviation analysts remain sceptical about whether these rivals, even with generous state backing, will ever put a significant dent in the bulging order books of…Continue reading

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ApprovedBusiness

A harder road ahead

 

 

 

 

FOR two decades China was a land of seemingly limitless opportunity for multinationals. Japan and South Korea had shut out foreign firms during the early phase of their economic development. By contrast, China’s leaders, after Deng Xiaoping’s reforms in the early 1990s, made them welcome. Provided firms brought world-class technologies, and agreed to joint ventures with locals in certain strategic industries, they were free to take a generous slice of China’s growing economic pie. But now a combination of factors is making life much more difficult for them.

Even foreign firms that looked like they might dominate the Chinese market are getting a rude awakening, as its economy slows and as competition from local rivals intensifies. Earlier this year Douglas McMillon, Walmart’s boss, declared that China was vital to the American retail giant’s future growth and vowed to add more than 100 new stores in the next two years to its current tally of 400-plus there. Walmart does not give much detail on how those outlets are performing. But a filing this month by its local…Continue reading

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ApprovedBusiness

The big-box game

SINCE the financial crisis, the tide of recovery has not lifted all boats equally. But in few industries is that more true than in shipping. Demand for oil tankers has boomed: a combination of weak spot prices and higher futures prices, driven by the assumption that supply and demand for crude will eventually rebalance, has encouraged traders to hire tankers to store oil at sea and cash in on the price gap. Meanwhile, bulk carriers, which carry such things as iron ore and coal, have been hit by massive overcapacity, as Chinese demand for such commodities has collapsed (see article).

Until the start of this year, the container-shipping business—which carries around 60% by value of all seaborne trade in goods—looked more like that for oil tankers. Rising global trade volumes, and firm steel prices that made it worthwhile for owners to scrap old ships, had kept capacity in check, and container-freight rates seemed to be steadying. As recently as August last year, demand for container shipping was so high that BIMCO, an industry…Continue reading

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