News: EY Attractiveness Survey ranks London highly on investor sentiment.This is according to the latest EY Attractiveness Survey which saw investors naming London as having one of the best chances of creating the next tech giant, second only to San Francisco.The attractiveness of London has helped the UK to become a more attractive proposition for foreign direct investment, although it is the north-west which has been the main draw.By contrast, FDI projects in the south-east fell by 22% compared with 2014.London's rise as one of the best places to invest and the view that it is likely to produce the next big tech giant has been boosted by a thriving tech sector that has seen the likes of fintech become a hot topic.For example, the Competition and Markets Authority recently proposed that banks which offer current accounts should maintain open application programming interfaces and share data in order to force greater transparency for account holders and to increase competition between banks.
View photosMoreA pedestrian walks past an Apple iPhone 6 advertisement at an electronics store in Mumbai, India, July 24, 2015.The finance ministry's foreign investment promotion board FIPB , which clears foreign direct investment applications, has asked the iPhone maker to sell at least 30 percent locally sourced goods if it wished to open shops in India.Apple hopes to expand its retail presence in India, one of the world's fastest-growing smartphone markets, at a time when sales in the United States and China have slowed.A panel set up by Sitharaman's ministry had favored waiving the sourcing requirement for the U.S.-based phone-maker."We took a line that we wouldn't mind waiving off the local sourcing norm for Apple's high-end products," said Sitharaman."The FIPB decision is a setback for Apple, whose chief executive Tim Cook met Indian Prime Minister Narendra Modi about a week ago.
Apple Inc. may be closer to opening retail stores in India without having to meet onerous local sourcing requirements after the government eased those regulations.The world s second-most populous country on Monday announced the easing as part of a raft of measures intended to boost foreign direct investment and expand the leeway afforded multinational corporations.It loosened policies that require retailers to source at least 30 percent of their components locally before they can set up shop.Apple is pushing to increase its share of the world s fastest-growing major smartphone market as device sales slow across the globe.Chief Executive Officer Tim Cook visited the country for the first time in May and met with Prime Minister Narendra Modi to outline his ambitions for the burgeoning market.Under the new regime unveiled Monday, single-brand retailers have a three-year grace period in which they can operate stores, before they have to comply with the local sourcing requirement.Companies that can show they are selling state of the art or cutting edge technology can benefit from a relaxed local sourcing regime for another five years.The government hasn t ruled on whether Apple meets the cutting edge criteria.Apple didn t immediately respond to an e-mail seeking comment on the government s decision.Cupertino, California-based Apple has used flagship stores in New York, Tokyo and Shanghai to promote its products and boost sales, but in India it sells through partners such as Redington India Ltd. as well as the retail units of Indian conglomerates Tata Group and Reliance Industries Ltd.The relaxed rules give Apple a window to build up a credible brand and gives the company a chance to build up internal capability and familiarity with the supply base, said Devangshu Dutta, chief executive officer of Third Eyesight.
Earlier this year, Apple was looking to open physical stores in India, but said three weeks ago that it would hold off on its plans unless it was exempted from having to locally source 30 percent of the goods it sold in the country.Today, the Indian government decided to relax its foreign direct investment FDI norms, allowing foreign companies in select sectors to establish operations in the country, including single-brand retail.FactorDaily reported last month that the iPhone maker planned to open 10,000 sq.ft. stores in major cities like New Delhi, Bangalore and Mumbai by the end of 2017.At present, Apple s on-ground presence in India is in the form of authorized resellers outlets, most of which failed to provide a consistent high-quality shopping experience.We ve contacted Apple for comment and will update this post if there s a response.
NEW DELHI—India s government on Monday eased foreign-direct investment restrictions in several sectors to increase inflows, a move that also could pave the way for Apple Inc. AAPL -0.24 % to open its own stores in one of its main growth markets.The policy changes relax foreign direct investment thresholds in the retail, defense and civil-aviation sectors among others.The move signaled the government was pushing ahead with its effort to liberalize its economy and came just two days after India s central bank Governor Raghuram Rajan announced that he would step down when his term ends in September.The news briefly rattled Indian markets on Monday but shares quickly brushed it off, helped by the government s announcement.Apple in January said it had sought government permission to open its own stores in India.Since assuming office in May 2014, Prime Minister Narendra Modi s government has moved to relax investment rules, helping the country emerge as one of the top destinations for foreign money.
To learn more and subscribe, please click here.Apple could begin opening branded stores in India after Indian officials announced changes to the rules governing foreign direct investment on Monday, according to Reuters.The new rules exempt foreign retailers from the regulation that formerly required at least 30% of the device goods from their stores be sourced locally.The Indian government hopes to convince Apple that there is sufficient domestic demand for its product to make a serious investment in manufacturing within the country.Unlike rival international manufacturers such as Xiaomi, Samsung, and domestic rival Micromax, Apple continues to import its products into India from China, making them considerably more expensive.This is a problem for Apple, which is trying to sell more of its handsets in a country where roughly 80% of smartphones cost less than $150, according to Bloomberg.Opening branded retail stores will also help Apple boost its brand recognition in India.Almost half of consumers in the country have never heard of Apple, according to a survey conducted in April by Morgan Stanley.Nevertheless, there is clear demand for Apple s iPhone devices in India and plenty of room for growth.The pool of first-time buyers in these countries is shrinking rapidly, and sales are now primarily coming from phone upgrades.Meanwhile, emerging markets will continue to see robust shipment growth.Still, the vendor saw a slight decline in YoY growth of its share of the market in the face of stiff competition from Samsung and Chinese vendors such as Huawei.In full, the report:Forecasts global smartphone shipments through 2021.Explores why India is the next high-growth smartphone market.Breaks down the global smartphone platform wars.Discusses smartphone vendor performance market share.To get your copy of this invaluable guide, choose one of these options:Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more.
Haier Group subsidiary Qingdao Haier inked a US$5.6 billion agreement to purchase GE Appliances in June.The strong appetite of private mainland companies for American assets has put total Chinese foreign direct investments in the United States on pace to breach the US$20 billion mark for the first time this year.Chinese outbound investments to the US surged to a record US$18.4 billion in the first six months of this year, driven by strategic corporate acquisitions of consumer goods-related, entertainment and information technology assets.That was almost triple the US$6.4 billion of Chinese foreign direct investments in the US in the first half of last year, and more than the total US$15.3 billion made last year, according to a report released over the weekend by research firm Rhodium Group.Total Chinese outbound investments in the US have exceeded US$10 billion for three consecutive years.While certain Western media reports earlier this year argued that the recent jump in Chinese outbound foreign direct investments largely represented capital flight due to foreign exchange volatility and the mainland s lingering economic slowdown, Rhodium analysts Thilo Hanemann and Cassie Gao said the majority of US deals in the first half were vital business transactions.
News: techUK creates new Brexit unit in response to worrying poll.The tech industry is suffering from post-Brexit blues, with a techUK poll showing a 23% fall in confidence in the UK tech sector s ability to grow over the next two years.70% of respondents are overall positive about the UK tech sector s potential for growth over the next two years, down from 93% in March 2016.With over three quarters of those surveyed having a European HQ based in the UK, just 20% were very positive in regards to UK tech growth, down from 52% in March 2016.Before the EU Referendum vote, the UK tech industry was overwhelmingly in support for the UK to stay in the EU, with access to the Digital Single Market and foreign investment just two major areas cited as being at risk in the result of a Brexit vote.These concerns have continued, with nearly half of respondents saying that Brexit would have a negative impact on foreign direct investment 49% , capital investment 48% , and R spend in the UK 48% over the next two years.
Led by Rajesh Agrawal, the Deputy Mayor for Business and Chairman of London & Partners, the companies will travel to Chicago and New York, as they look to secure extra investment and explore opportunities to expand and export to the US market.The UK also remains the largest single investor in the US, according to separate research from CBI released earlier this month.London is the leading global city for foreign direct investment from the United States, with the trade mission providing an opportunity to highlight London's strengths as a leading business destination for US companies looking to expand overseas.Between 2005-15, London & Partners helped 572 US companies to set up in London, creating close to 16,000 jobs for the capital.The companies will be joined on the trade mission by the Mayor of London Sadiq Khan, who is looking to strengthen ties between London and the US and show London is open for business following the EU referendum vote.Sarah Wood, CEO and co-founder Unruly and Mayor's International Business Programme Mentor added: "From my experience helping Unruly to expand overseas, I have seen first-hand the fantastic opportunities for London tech companies looking to grow their business in the US market.
James Park flew into a storm as he arrived to open Fitbit Inc. s new offices in Dublin last week, one day after Europe slapped Apple Inc. with a record tax demand in Ireland.While young workers for the San Francisco-based maker of wearable fitness trackers chatted on treadmills nearby, Park swiftly dismissed any suggestion that the Apple case could derail his plan to double the size within two years of Fitbit s operation, located close to the banks of Dublin s Grand Canal.Nothing that has happened changes that plan, said Park, adding that Ireland s lure for technology companies is intact even after the European Commission told Apple to pay the country 13 billion euros $14.5 billion in unpaid taxes.I don t think executives in the U.S. would get too confused by popular sentiment or by the press.One city center neighborhood nicknamed Googletown, has the search-engine giant s 15-story European headquarters looming over quaint houses in the narrow streets.Any cloud over the tax regime risks hurting the investment that has driven Ireland s economic recovery, and experts are divided over the impact of the EU s Apple ruling.Undoubtedly what the commission has done is going to damage foreign direct investment, Martin Shanahan, chief executive of IDA Ireland, the agency in charge of wooing companies to Ireland, said in an interview with Bloomberg Television.The question is how big a blow the decision is.
As the commodity crash buffets the continent s biggest economies, the interest and investments couldn t come at a better time.Almost half of foreign direct investment projects in Africa last year were in technology, telecommunications, financial services and consumer products.There s been a big shift from an almost exclusive focus on extractive sectors to those such as consumers and renewable energy, said Michael Lalor, the Johannesburg-based head of EY s Africa Business Centre.Of the three biggest sub-Saharan economies, Nigeria s is shrinking and South Africa and Angola are barely growing.Investors have adapted by focusing more on the continent s young population and rising middle class as harbingers of opportunity.Countries less exposed to commodities are reaping the benefits.The number of foreign direct investment projects carried out by private-sector companies in Kenya rose to 95 in 2015 from 62 the previous year, the biggest increase among African nations, according to EY.Kenya is really benefiting in terms of long-term investment, said Martina Bozadzhieva, an analyst at London-based Frontier Strategy Group, which advises firms looking at emerging markets.
Vodafone India is said to have the worst 4G portfolio amongst the top five carriersWe have noticed you are using an ad blockerTo continue providing news and award winning journalism, we rely on advertising revenue.To continue reading, please turn off your ad blocker or whitelist us.Vodafone is pumping in Rs 477.7bn £5.51bn, $7.17bn in its Indian subsidiary for expansion purposes, Sunil Sood chief executive at the telecom giant's Indian subsidiary said.Calling the infusion the largest ever foreign direct investment FDI in India until date, Sood explained that the funds would "enable Vodafone India to continue its investments in spectrum and expansion of networks across various technology layers".
View photosMoreSlovenia's Prime Minister Miro Cerar arrives at a European Union leaders summit in Brussels, March 19, 2015.LJUBLJANA Reuters - Japanese electrical equipment producer Yaskawa Electric 6506.T will build a robot factory in Slovenia, Prime Minister Miro Cerar told reporters in Brussels on Thursday.State news agency STA reported that the investment was likely to be around 25 million euros $27.3 million and that Yaskawa chose Slovenia over Slovakia, the Czech Republic and Poland, which were also being considered as possible locations for its new factory.Yaskawa specializes in robotics and motion control technologies.It already owns a small factory in Slovenia which produces robotic cells.Cerar was attending a European Union summit of heads of government in Brussels.
Michael Clauss, German Ambassador to China, told the South China Morning Post that there has been an unprecedented wave of complaints from German companies doing business in China.Can you comment on reports that the German government is planning to review its laws about the acquisition of German companies by non-EU countries, especially China?Sino-German economic ties continue to flourish steadily, notwithstanding a difficult global economic environment.We both have greatly profited from globalisation and there is much potential still left untapped.We are the most open economy for Chinese investment, including the cutting-edge hi-tech sector, as witnessed by a more than 20-fold increase in the first half of 2016 compared to the same period in 2015.Which sectors are most affected, and what protection measures have been used?
A robot performs at the 2016 World Robot Conference in Beijing last month.China is producing a record number of patents in a deliberate push toward innovation, but experts warn it may be focusing on quantity over quality.It is growing, continues to grow at an extraordinary rate.The number one difficulty is learning how to innovate effectivelyGeorges Haour, professor and authorBut while innovation in China appears to be growing at a faster rate than countries such as the US, it still faces many challenges, according to Georges Haour, a professor and author of Created in China: How China is Becoming a Global Innovator.
Facebook Data Centre in Odense, Denmark will run on entirely on renewablesFacebook is to open a 55,000 square metre data centre in Denmark, the third such facility it has built outside the US, which is to be powered entirely by clean energy.It was reported last October that the social network had purchased land in Odense, the country s third largest city, and the Danish government said the deal was the product of three years of confidential preparation.I am very happy that Denmark has managed to attract yet another big foreign direct investment, declared Minister for Foreign Affairs Anders Samuelsen.Facebook s investment is … a great example of how joint efforts can create jobs, growth and development in Denmark. I am of course proud of Facebook s investment in Odense, but this investment also represents a broad recognition of Denmark as a country that has something special to offer, added Minister for Energy, Utilities and Climate, Lars Christian Lilleholt.
Despite a year-on-year increase of 12.3 per cent in global semiconductor sales last December, which brought the total for 2016 to a record US$338.9 billion RM1.5 trillion , most analysts in Malaysia are neutral on the local-related players due to challenges from a slower global economy, rising trade protectionism and the weaker ringgit.Global semiconductor sales for 2016 was just 1.1 per cent more than 2015, according to the European Semiconductor Industry Association.JF Apex Securities Sdn Bhd research head Lee Chung Cheng said he expects Malaysian electrical and electronic E , and technology-device manufacturers that depend highly on exports, to be negatively impacted.Should the US impose a higher import duty or tariff, it could affect international trade.MIDF Amanah Investment Bank Bhd analyst Martin Foo noted the general anxiety over US President Donald Trump s aim to seek the return of production to the US to create more jobs for Americans.Nevertheless, there is no immediate risk of relocation of plants, or services such as research and development R , sales and after sales, and branding that have high profit margins.
Chinese President Xi Jinping speaks by video conference to delegates at the opening ceremony of the World Internet Conference in Wuzhen, China's Zhejiang province on November 16, 2016.As China reduces its focus on manufacturing and attempts to restructure toward a service-based economy, its leadership is crafting a plan to drive the transition.The plan reinforces China s current approach toward service sector reform, focusing largely on non-traditional sectors.China s service sector reform has been slow going in traditional areas such as public education and healthcare since the state is well entrenched in these industries, leading to issues like institutional inefficiencies, and overspending.Due to the emphasis placed on China s services sector, the industry weighed in at $5.6 trillion USD in 2016, making up over 50% of GDP for the second year in a row.The new service sector fund will focus on high value-added service exports like technology and finance, with the state contributing 16.7% of the fund and non-government investors contributing the rest.
As India becomes the fastest growing smartphone market in the world, the Indian handset industry is poised to overtake America as the second largest market in next few years.India has activated policy changes that liberalized foreign direct investment FDI rules in mobile sector and has spelled out the definition of the term "manufacturing" to provide clarity to companies.As per the definition by the Department of Industrial Policy and Promotion DIPP , "Any change in the physical object resulting in transformation of the object into a distinct article with a different name or bringing a new object into existence with a different chemical composition or integral structure" would qualify as manufacturing.According to Paresh Parekh, a partner at Ernst & Young, "Defining manufacturing for FDI purposes is a milestone development - CKD complete knock down and assembling activities stated to benefit the telecom sector.In last year s Union Budget, as part of the phased manufacturing program PMP the government had included a provision to manufacture a few accessories, with the subsequent aim of making India a full-scale components manufacturing hub in the next three to four years' time.According to Pankaj Mohindroo, president of Indian Cellular Association, "A fine balance has to be created in the phased manufacturing program to enable the final product assembly industry to fully blossom, so that it can attract the components industry vigorously."
p Until recently, globalisation was the only show in town.As United Nations' Secretary-General Kofi Annan put it in 1999: "Globalisation is an irreversible process, not an option."Trump dominated headlines, but the reversal was underway.The canary in the coal mine for deglobalisation is the scale of trade to global economic activity.Between 1970 and the financial crisis of 2008, the ratio of global trade in goods to global GDP rose from around 20 per cent to just under 52 per cent.Since the crash, however, trade hasn't been as dynamic and the ratio of trade to GDP has fallen to 45 per cent.