9to5 : Apple Watch Series 8 Pro is basically an Apple Watch Series X





Here’s a terribly possible idea that definitely won’t happen: Apple Watch Series 8 and Apple Watch Series X. Ah yes, Apple’s beloved Roman number 10, back for another round of being called “ecks” as in the letter X. There’s an argument to be made for using Apple Watch Series X for the higher-end Series 8 this year.



The case for Apple Watch Series X
Apple Watch Series 8 Pro is the logical name for the rumored top-tier version this year. Apple is reportedly ditching the Jony Ive-inspired Edition strategy of selling a better-than-stainless-steel watch with the same guts inside for a higher price. Instead, Apple is expected to repurpose the titanium Apple Watch as the best-in-class-on-paper version this year.
Better screen, new design, same chip. Sound familiar? That’s a lot like the strategy Apple used when it released the iPhone 8 and iPhone X in 2017. Apple skipped the iPhone 9 and went straight to iPhone X (pronounced 10) because it was leaps and bounds more modern than the iPhone 8 (which looked a lot like the iPhone 6). Apple sold the more updated product for a $300 premium.
iPhone 8 versus iPhone X display
Strategically, the Apple Watch Series 8 and Series 8 Pro (or whatever Apple calls the thing) sound very similar. The normal Apple Watch is gets a modest year-over-year update. The more technically impressive version delivers designs that will take more time to be sold for the usual prices and profit margins.
It really does feel like the Apple Watch is having its iPhone X moment.
A reason for Apple Watch Series 8 Pro
Apple Watch Series 8 Pro is clunkier and more gadgety. It’s not as elegant as Apple Watch Series 8 Edition, but it’s also not any longer. And while Apple did do well with its iPhone 8 and iPhone X strategy, it backfired a year later with the iPhone XR and iPhone XS naming scheme; that’s when Apple shifted to iPhone 11 and iPhone 11 Pro. This better communicates that the lower-priced model is the mainstream flagship while the more expensive version just has more stuff.
Best Edition is ceramic Edition
Apple Watch Series 8 and Series X are perfectly fine for this year, but pattern would suggest Apple Watch Series 11 and Series 11 Pro next year. It probably makes the most sense to skip right to the cohesive and clear marketing names from the start. Then again, it’s Apple, so left field names that few see coming are typical.
Regardless, I’m still thinking of this rumored Apple Watch with larger screens and an updated look as the Apple Watch Series X equivalent. What do you think Apple should name its new watches if the tiered strategy is correct? Share your thoughts in the comments!

WSJ : UPS Nears Deal to Buy Italian Healthcare-Logistics Provider Bomi Group

UPS Nears Deal to Buy Italian Healthcare-Logistics Provider Bomi Group
Acquisition would broaden Atlanta-based transportation giant’s operations in Europe and Latin America

nited Parcel Service Inc. UPS 1.15% is nearing a deal to acquire Italy’s Bomi Group, according to people familiar with the matter, as the transportation giant looks to bolster its medical-product-distribution business.

The deal, worth several hundred million dollars, could be finalized as soon as Monday assuming the talks don’t break down at the last minute, the people said.

Founded in 1985, closely held Bomi distributes a range of medical products such as imaging equipment, biological samples and pharmaceuticals to hospitals, clinics, laboratories as well as to patients’ homes. It operates in Europe and Latin America, according to the company’s website.

A deal for Bomi would expand Atlanta-based UPS’s operations in those regions and underscore the growing importance of the transport of medical supplies and equipment in the wake of the Covid-19 pandemic.

In June, an investment group led by global buyout firm EQT EQT -2.89% AB agreed to acquire Sweden-based medical-freight provider Envirotainer AB for close to $3 billion.

Bomi would represent a relatively small acquisition for UPS, which has a market value of close to $172 billion.

UPS is acquiring the business from French buyout firm ArchiMed, which together with Bomi’s founding Ruini family purchased the company in 2019 in a €100 million ($102 million) deal. Since then, the logistics company has acquired more than six rivals, cementing its position as Italy’s largest transport and warehouse operator for the healthcare industry and expanding its operations in Brazil, the U.K. and Spain.

ArchiMed manages over €5 billion in assets that are concentrated across the healthcare sector. It focuses its investments on areas such as biopharmaceutical products and services, life-science tools and medical devices and technologies.

FT : Investors sell stakes in buyout funds at a record pace

Investors sell stakes in buyout funds at a record pace
Pension funds among those that sold $33bn worth of stakes in private funds in first six months of the year

Investors are selling stakes in private equity and venture capital funds this year at the fastest pace on record, as the downturn in equities spreads to the private markets that boomed during the era of low interest rates.

Pension and sovereign wealth funds were among those that sold $33bn worth of stakes in private funds in the first six months of the year, up from $19bn in the same period in 2021, according to Jefferies, typically selling them below their face value.

The sell-off follows a decade of surging allocations to private markets, which have grown in influence since the financial crisis and cover everything from buyout firms to venture capital and real estate funds.

It casts doubts on the ability of these groups to sustain the fundraising that has transformed them into a major force in global dealmaking.

Pension funds say the move to ditch stakes has been partly triggered by the steep decline in stock markets, leaving their overall portfolios too exposed to buyout funds and other private investments whose value has not been marked down in the same way.

“We’ve never had to do this before, and we hoped we would never have to do it,” said the head of private equity at a pension fund that sold some of its holdings in buyout funds at a discount. “We’re also going to reduce the amounts we commit to new private equity funds this year and next.”


At the same time, pension funds that had committed money to buyout firms have had to actually stump up the cash far more quickly than expected over the past two years because of the frenzy of dealmaking.

That has sparked fears of a funding squeeze, according to a senior executive at an endowment that invests in private equity, as some pension funds worry they may not have enough cash on hand to meet future capital calls from the buyout funds they have committed to.

Investors “are desperately worried that they’ll get themselves into a complete cash crunch and have to start selling things, so they’re trying to get on top of that” by selling the stakes now, he said.

“Distributions [money handed back to investors from successful deals] were at an incredible pace for the last five years” and investors assumed this would continue, enabling them to meet new calls on their funds, he said. “Instead they’ve almost completely turned off.”

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In contrast to publicly traded securities that can be easily bought and sold, investments in private funds are typically locked up for about a decade and their value is determined using a process of sophisticated guesswork.

However, the holders of these illiquid stakes can quietly sell them in a secondary market, either to other pension funds and sovereign wealth funds or to specialist groups known as “secondaries” businesses. These niche investment groups are sitting on about $227bn, raised partly for such transactions, according to Jefferies.

While some investors routinely sell their older stakes in private funds, almost half of this year’s transactions involved a first-time seller, Jefferies estimates. The volume of such sales is always higher in the second half, putting this year on track for a record if the pattern is repeated.

On average, stakes in buyout, venture capital and real estate funds were disposed of for just 86 per cent of their face value in the first half, the biggest discount since the period of market turmoil at the start of the coronavirus pandemic, according to Jefferies.

Stakes in venture capital funds were sold at 71 per cent of their most recent valuation, underlining how rising interest rates and fears of a recession have curbed investors’ willingness to back often unprofitable start-ups.


Private equity groups typically estimate that an investor makes more money if they hold the stake until the end of a fund’s life. But the seller does not necessarily lose money overall because the fund may already have repaid enough from successful deals to earn a positive return.

FT : XTX Markets sues Mazars for discrimination over Russian founder

XTX Markets sues Mazars for discrimination over Russian founder
One of the world’s biggest market makers alleges accounting firm is in breach of UK law

Financial trading firm XTX Markets is suing accounting firm Mazars for racial discrimination over its refusal to work for the company because its owner is a Russian citizen.

The London-based trading group is majority owned by billionaire Alexander Gerko, a dual Russian and British citizen, who has lived and worked in the UK since 2006 and is not the subject of any international sanctions, according to a copy of the legal claim seen by the Financial Times

XTX is seeking a declaration that the accounting firm breached the UK Equalities Act by discriminating on grounds of race when it declined to work for the company because its owner has Russian citizenship. It has not asked the court to award damages against Mazars or to force the firm to carry out work for it.

A legal victory for XTX, which has grown into one has one of the world’s leading market-makers, could force accountants, lawyers and public relations firms to review their approach after they rushed to jettison clients with connections to Russia following the country’s invasion of Ukraine.

Many Russians, including those who were not the subject of sanctions, struggled to find advisers in the UK and other jurisdictions as professional services groups faced pressure from employees and the public to refuse to work for Russian clients or companies with any perceived links to the country.

XTX, which competes against the likes of Citadel Securities and Virtu Financial, uses algorithms to trade nearly $300bn a day in assets such as equities, fixed income and futures.

It was founded by Gerko, a Russia-born mathematician who has a stake of at least 75 per cent and serves as joint chief executive. Gerko, who has been publicly critical of the invasion of Ukraine, was listed as the UK’s 89th- richest person by the Sunday Times this year, with estimated wealth of £1.1bn.

XTX said it had committed £40.6mn to charities providing humanitarian relief to Ukraine. In March Gerko wrote on Twitter about Russia’s foreign minister Sergei Lavrov: “Nuremberg is waiting for you.” He had also called for the UK to expand its sanctions list.

Gerko has been a British citizen since 2016, is a permanent resident of the UK and has “no links with, or wealth tied to, Russia”, according to the claim filed in the Central London County Court last month. Neither Gerko nor XTX are included in any sanctions regime, nor are they connected to anybody targeted by economic sanctions, the claim adds.

The case revolves around Mazars’ refusal to provide payroll services to XTX Markets Technologies, part of the XTX Markets group, which reported net profits of more than £660mn in 2021 and employs about 180 people globally, mostly in London.

XTX, which also has offices in New York, Singapore, Paris and Mumbai, alleges that Mazars stood by its decision even after being told that Gerko was not the subject of sanctions and that he had “lived in the UK for over 15 years; his source of wealth comes from the UK; and he has no assets in Russia”. 

According to the claim, Mazars partner Erick Gillier wrote in an email to XTX’s general counsel Sunil Samani in May: “I’m perfectly aware of the UK, EU and US sanctions programs, but Mazars as a group, took the decision not to accept any new clients with Russian ownership. This is a global decision and as partners we all need to follow these guidelines.”

XTX alleges that this position was contrary to Mazars’ public policy that it would not serve any companies or individuals who were the subject of sanctions. It claims that Samani told Gillier that Mazars’ stance was discriminatory and asked to speak with the person responsible for its policy but never received a response.

Mazars declined to comment. It has until later this month to respond to the claim.

>>> Weekend Papers Summary

Weekend Papers Summary

NEW YORK TIMES
-Jury in Alex Jones Trial Awards $45M to Sandy Hook parents. The conspiracy theorist was ordered to pay the punitive damages for spreading the lie that the parents helped stage the 2012 school shooting. The decision came a day after the jury awarded the parents more than $4 M in compensatory damages.
-Indiana Governor signs near-total abortion ban. The law passed despite dividing Republicans. Some of them said the measure was too restrictive; others objected to limited exceptions for rape and incest.
-Democrats’ long-sought plan for lowering drug costs is at hand. Empowering Medicare to negotiate prices with drug makers has been a Democratic goal for 30 years, one the pharmaceutical industry has fought ferociously.
-Progressives embrace climate and tax deal, despite disappointments. Liberal Democrats who once sought a far more ambitious plan seem ready to support one that could be their party’s last chance to enact some of its agenda.
-With Senator Kyrsten Sinema’s demands on the climate and tax bill, the “carried interest loophole” survived again.
-Good News on jobs may mean bad news later as hiring spree defies Fed. Employers hired rapidly and paid more in July, suggesting the Federal Reserve may have to remain aggressive in its effort to cool the economy.
-The US added 528,000 jobs in July, despite widespread expectations of a slowdown as the Fed raised interest rates.
-China stages show of force near Taiwan for a third day. The military drills, which appear to be simulating an attack on the main island, have edged closer than ever before to territory Taiwan considers its own.
-Blasts are reported at a nuclear plant seized by Russia. Fighting has picked up in recent weeks near the Zaporizhzhia nuclear power complex, which Russia is using as a fortress. Catch up on news about the war.
-The US and Russia are ready to negotiate Brittney Griner’s release. The countries’ top envoys made separate announcements after a meeting where they sat close together — without talking.
-Israel has hit Gaza, prompting rocket barrage and ending relative calm. In by far the biggest escalation of violence in Gaza since the end of a war in May 2021, Israeli airstrikes killed a militant leader and at least nine others, according to Palestinian officials.

THE FINANCIAL TIMES
-The Federal Reserve will face more urgency in its fight to cool down the US economy with steep interest rate increases after the latest batch of labor market data showed an unexpected acceleration in jobs gains and strong wage growth.
-US government bonds tumbled and stocks slipped after employment data showed red-hot labor conditions, leading traders to boost their expectations for Federal Reserve interest rate increases.
-As they face the latest upheaval, the Meta CEO and his top executives are no longer sitting cheek by jowl in their San Francisco Bay office. The pandemic forced a new way of working, and this week came news that two top Meta figures — Adam Mosseri of Instagram and global policy chief Nick Clegg — are moving to London for all or part of the time. This follows similar moves by other top executives this year: one is already in the UK, while others have departed for Israel, Spain and New York.
-China has suspended regular communication channels with the US military, as well as climate talks between the world’s two largest economies, in retaliation for US House Speaker Nancy Pelosi’s visit to Taiwan this week. The Chinese foreign ministry declaration came after the country’s military sent planes and warships to probe Taiwan’s defenses for a second day.
-Recep Tayyip Erdogan and Vladimir Putin have pledged to deepen economic ties between their countries as Moscow seeks to soften the blow of western sanctions imposed over its invasion of Ukraine. After a four-hour meeting at Putin’s residence in Sochi on Friday, the Russian and Turkish presidents released a joint statement pledging to raise their bilateral trade volumes and deepen their economic and energy ties.
-The Pelosi visit to Taipei, the first in 25 years by a Speaker of the House, was designed to demonstrate support for the country in the face of what many in the US believe to be a growing threat of a Chinese invasion. But some in Washington now fear that the visit could have the opposite effect — giving Beijing the chance to demonstrate its capacity for military coercion and leaving Taiwan even more exposed to the expanding rivalry between the two superpowers.
-The battle between Asia and Europe to lock in gas supplies is stepping up a gear, heightening the risks of a further surge in prices that would add fresh fuel to the cost of living crisis. Japan and South Korea, the world’s second- and third-biggest importers of liquefied natural gas, are looking to secure supplies for the winter months and beyond, out of fear of being priced out later in the year as Europe’s demand increases, according to traders.
-In the past few years, conversations about the future of crypto usually alight on a semi-mythical event at an undetermined date known as the “Merge”, and involves Ethereum, one of the industry’s premier blockchain networks. It matters because it confronts one of the sharpest criticisms of crypto: that the industry guzzles vast amounts of energy when the planet desperately needs to reduce its consumption.

NY POST
-Republican border-state governors are sending busloads of illegal entrants — released in their states by the Department of Homeland Security — to DC and New York City, prompting recriminations and pleas for federal cash from the Democratic mayors of those erstwhile immigrant-friendly cities. Those mayors, seemingly unwittingly, are making the governors’ point — that the administration has created a disaster at the US-Mexico line, requiring an immediate policy shift to protect lives and state and local finances.
-Jim Cramer was the target of ire on social media on Friday after crypto trader Coinbase’s stock shot up just a week after the CNBC finance guru warned of an SEC probe into the company. On July 26, Cramer tweeted: “The Coinbase roll over on a possible SEC investigation is very bad news given that we don’t even know what it’s about. But they were always hoping to avoid SEC scrutiny.”
Twitter users then posted screenshots showing Coinbase’s stock price soar by more than 16% on Thursday to above $106/share.

>>> Barron’s Weekend Summary

Barron’s Weekend Summary: General Electric, once arguably the greatest of American companies, will cease to exist, at least as the industrial titan it once was.

Cover Story:
General Electric, once arguably the greatest of American companies, will cease to exist, at least as the industrial titan it once was. After more than 20 years of decline, the company is entering the final stages of a process that has seen the General Electric of old slowly dismantled—the corporate powerhouse founded by Thomas Edison doesn’t even make lightbulbs anymore—until just three parts remain. Soon, those units—GE’s aviation, energy, and healthcare businesses—will be separated into individual companies, starting with GE Healthcare, which could be spun off in early 2023. It’s a sad end for a giant humbled by missteps.

Interview:
-This week, Barron’s interviews Eli Salzmann loves nothing better than finding a company that’s a “dog of a stock with no momentum” but on the verge of better days. At its core, that is what value investing is all about. Over the course of his 36-year career, Salzmann has proved he has a knack for buying undervalued stocks shunned by the market and delivering stellar returns along the way.
Salzmann is a managing director at Neuberger Berman and senior portfolio manager of the $10B Neuberger Berman Large Cap Value fund alongside fellow portfolio manager David Levine.

Tech Trader:
As a couple of Apple news sites picked up last week, the company recently posted a job listing for a “Senior Product Manager, Demand Side Platform.” Ad tech is complex, so here’s a translation: A “demand side platform” lets ad buyers buy inventory on multiple ad exchanges from a single interface, using automated bidding, which is also known as programmatic. The platform takes a little slice of each dollar deployed. There are a bunch of these DSPs. Meta Platforms has Meta Ads Manager; Alphabet has Google Ad Manager; Amazon.com offers Amazon DSP.

The Trader:
-Inflation is sticky, but economic growth is sticky, too. And that puts the Federal Reserve—and investors—in a bind. Look no further than Friday’s payrolls report release. The U.S. added 528,000 jobs in July, more than doubling estimates for 250,000, while the unemployment rate dipped to 3.5% from 3.6%. If you’re worried about a recession, there’s no sign of one here.
-When Walmart sneezes, the retail sector catches a cold. That was particularly true of the dollar stores after Walmart lowered its full-year guidance in late July, but investors should think twice before turning their noses up at the stocks. Retailers have been under particular pressure this year, as inflation-strapped consumers are being forced to make harder choices. That reality was on display during first-quarter earnings season in May, when both Walmart and Target disappointed; and again in June, when Target lowered its guidance for the second time in a month.

Features:
-Democrats proposed lifting the corporate tax rate to help fund their climate and healthcare package, and if the tax remains part of the deal companies—specifically larger ones—could take a hit. The original proposal included a plan to raise revenue through a 15% minimum corporate tax rate. That could be modified, though higher taxes on companies is likely to remain a priority. If the tax goes through, larger companies would bear the burden. The tax would apply to those that have averaged $1B of adjusted pretax profit in the past three years. Strategists at UBS screened for companies that both fit that bill and have recently been paying less than 15% in cash taxes, and found 102. Of those, here are few that are particularly vulnerable. Utility American Water Works Company, Ameren, Advanced Micro Devices, Nvidia, Broadcom, Apollo Global Management are some of them.
-Blackstone Group is the world’s largest manager of alternative assets such as private equity and real estate. It is also a leader in one of the industry’s biggest initiatives—attracting retail investors. By many measures, the company’s flagship retail product, Blackstone Real Estate Income Trust, is a success. Known as Breit, it has mushroomed in value to $116B since its inception in 2017 and become one of the largest buyers of real estate in the country.

European Trader:
“Airbus is on a very strong growth trajectory regardless of a recession and postpandemic normalization,” says Colin Scarola, an analyst at financial research company CFRA. He sees the stock rising to EUR140 ($143) over the next year, up 35% from its recent level of €104. Plus, the stock yields a 1.4% dividend currently. U.S.-based investors could consider buying the American depositary receipts. The company on July 27 reported better-than-expected first-half profits. Despite the improving profitability, the stock has followed the broader market down. The shares have lost about 8% this year, roughly in line with the performance of the Paris CAC 40 index, which tracks leading French-listed companies.

Emerging Markets:
China’s real estate travails have gripped global attention. Housing in other emerging markets now looks wobbly as consumers, loaded with debt from a postpandemic price boom, face interest-rate hikes and fatter monthly payments. South Korea is a prime candidate. Apartment sales there dropped by half in the first six months of 2022, after prices climbed 20% in two years. The central bank has tightened from 0.5% to 2.25%, and warned of more to come.
-House Speaker Nancy Pelosi’s visit to Taiwan this week has ratcheted up US-China tensions to a new level. The question facing investors now is what shape the escalation takes—and the impact on the global economy. The concern is that the status of Taiwan, the self-ruled island that China claims as its own, draws the US and China into a military conflict that forces the rest of the world to choose sides. Such a conflict would also disrupt the steady balance that has allowed Taiwan to emerge as the epicenter of advanced semiconductor production that helps keep the digital economy humming and is crucial for tomorrow’s superpowers.

Commodities:
-There was no specific commodities column this week. The focus was on the Jobs Report: Jobless claims data released early Thursday showed that the number of Americans filing for first-time unemployment benefits increased again in the last week of July. The data was in line with economists’ expectations. Overseas, the Bank of England decided to raise its key interest rate by half a percentage point from 1.25% to 1.75% in an attempt to fight inflation. It was Britain’s biggest hike in 27 years, and the BoE also warned of a long, looming recession. “Don’t expect Fed officials to shift their hawkish tone in coming weeks, regardless of incoming economic data,” wrote Nicholas Colas, co-founder of DataTrek Research on Thursday.

Streetwise:
-The US is somehow gaining wireless accounts faster than people, says Jack Hough. During the second quarter, there were 2.22M “postpaid net adds,” a smidgen shy of the record set a year ago. Postpaid accounts come with regular monthly bills and make up three-quarters of the market. Net adds are new subscriptions minus canceled ones. The growth works out to 3.9% year over year. More than two-thirds of it was captured directly by telecoms, and the rest came from so-called mobile virtual network operators, including cable companies that pay telecoms for the right to sell piggyback service on their networks.

Variety : Why HBO Max May Already Have Lost the International Streaming Race

Why HBO Max May Already Have Lost the International Streaming Race

Warner Bros. Discovery says it will merge HBO Max and Discovery+ into a single platform that is commercially and technologically viable. But the conglomerate looks like it will be playing catch-up in streaming markets outside the U.S. for many years to come.

That’s a dreadful blunder for a group that contains the iconic pay-TV brand HBO, and had already started to roll out its own direct-to-consumer service HBO Max.

The situation is particularly egregious in the wider Asia region, which is currently the world’s fastest-growing streaming market, but where the new improved WBD-iteration of HBO Max will not be available for another two years.

“We plan to launch the [HBO Max] service sequentially starting in the U.S. next summer. Latin America will follow later in the year, European markets [currently] with HBO Max will follow in early ‘24, with additional launches in key Asia Pacific territories and some new European markets coming later in 2024,” said JB Perrette, CEO and president of global streaming and games for Warner Bros. Discovery, on a conference call on Thursday, following publication of the merged WBD’s second quarter financial results.

The admission that the software on which HBO Max is built is not up to par is woeful. HBO Max has had “performance and customer issues,” but offers a rich set of features, explained Perette on the conference call. On the other hand, Discovery+ has more limited features, but provides a more robust underlying delivery infrastructure.

Pity the consumers in eight markets in Asia, where the stop-gap HBO Go platform is currently available. They had been told that HBO Max would represent a technical upgrade on what they are currently being sold.

While the group’s technology issues will surely be overcome, the time lost and out of the market can only be costly. There are at least two reasons for that.

First, the global growth of SVOD is already slowing down — some markets are already approaching saturation, while an imminent recession will make more consumers reduce their discretionary spending and likely cut the number of video subs per household.

The rot has already begun in the U.K., where a BARB survey published this week found a 2% quarter-on-quarter decline in the number of British households with any SVOD service.

Perette says that the new WBD / HBO Max is intended to be so good that it reduces churn. But by the time WBD Max gets rolled out in some parts, Apple TV+ and Amazon’s Prime Video will have had time to fill in geographical gaps in their current service matrix, grow their content production studios and acquire subscriptions through blockbuster content like “Lord of the Rings: The Rings of Power” or “Ted Lasso” and “Severance.”

In fact, the WBD targets for the new service are curiously underwhelming. It aims for 130 million global subscribers by 2025, up from the 92 million the conglomerate has currently. But that compares with 2022 figures of 220 million for Netflix; Disney+ with 138 million (excluding Hulu and ESPN+); and the 65 million that Paramount+ has quickly built.

Armed with Discovery+ technology, fresh insight into the balance between AVOD and SVOD, plus a wealth of content (Discovery, HBO, Warner Bros. and a mega bundle of TV brands covering news, kids and entertainment), there’s every reason to think that WBD / HBO Max will come out swinging. One advantage of being late to the party could be a shorter ramp up to profitability than its first-mover rivals.

“A 2024 launch of new paid and free streaming platforms probably allows the company to drive immediate monetization through major licensing deals and some pockets of growth across theatrical and branded pay channels,” says Vivek Couto, at consultancy Media Partners Asia. “It also gives new management time to plan the execution and strategy on technology, content and localization as well as pricing and figure out what is their right to play in the region. The focus will invariably be on trying to achieve scale and monetization in key markets such as Australia, Japan, India and parts of Greater Southeast Asia.”

Analyst Claire Enders, founder of Enders Analysis, is more pessimistic still. “The streamer bubble is well and truly burst,” says Enders. “The Netflix share price drop has been the harbinger of all of these phenomena — the Wall Street people don’t believe in it anymore.” Enders adds that there is no more room in the top tier, which comprises Netflix, Disney+ and Amazon Prime Video.

HBO will continue doing well as a brand thanks to its “Game of Thrones” spinoffs, but not HBO Max, says Enders. “It’s HBO that has the brand recognition, not HBO Max,” says Enders. She sees HBO Max’s best prospects in North and Latin America. Europe is different and a more entrenched pay-TV market thanks to 50% of the audience being above the age of 42.

“They will keep open the possibility of launching in these other European markets. When they see that they build up a big audience on pay TV for ‘House of Dragons,’ for instance, and the other spinoffs, they’ll see that has perpetuated the value,” says Enders.

Nevertheless, a second reason for concern is that in the interim period before rollout of the new service, WBD will actually be helping its competitors by unloading content.

This is already underway.

Variety understands that big licensing deals in the Asia Pacific region are being split between local platforms in Australia and Japan and with regional players Amazon and Netflix. In India, their output is being divided up between Prime Video and Disney+ Hotstar.

All eight “Harry Potter” movies will leave HBO Max from Aug. 31 and can already be found in the U.S. on Peacock instead. HBO Max quietly removed six Warner Bros. streaming exclusive films and axed the “Batgirl” movie in efforts to cut costs.

In Europe, HBO Max also runs the risk of alienating content suppliers. In July, the service abruptly axed several commissioned originals including “The Informant,” “Lust” and “Kamikaze.” At a time when Netflix and Amazon are stepping up local productions and fast-growing services like RTL+ have revealed expansion plans, HBO Max’s stated local first strategy now rings very hollow.

FT : Energy crisis: shiver not at colder houses and warmer clothes

Energy crisis: shiver not at colder houses and warmer clothes
Soaring prices are curbing consumption so maybe it is time for an individual approach to temperature control

Cold shower anyone? The hot water has been turned off in some German leisure centres. In Spain, energy savings measures are starting to bite. Offices, bars and shops are banned from adjusting the thermostat below 27C in summer or above 19C in winter.

Temperature restrictions reflect the severity of Europe’s energy shortage. Soaring prices are curbing consumption too. The IMF this week argued that most people need to adjust to the energy shock by reducing usage. Governments should only protect the poorest households.


Spain has set a benchmark for other nations with its 19C winter maximum. The average heated temperature of EU homes is over 22C, according to the International Energy Agency. It notes that a 1C cooler temperature typically knocks 7 per cent off energy bills.

Shiver not. People used to live in much colder houses. In the four decades from 1970, the average internal temperature of a UK home rose by nearly a half from 12C to 17.6C.

That partly reflects a more uniform distribution of heat. The spread of central heating — from just a quarter of UK homes in 1970 to over 90 per cent in 2012 — means that more rooms are kept warm.

Attitudes to cooler rooms vary. Women prefer temperatures a few degrees higher than men, researchers say. Warm homes are also recommended for the elderly and sick. But there is limited evidence to support the World Health Organisation’s recommendation of a minimum temperature of 18C.

Small changes add up. Delay turning on the heating by a month to November. That should could save your household around 670 kWh per year, or 5.5 per cent of space heating energy. You can save even more by wearing thick jumpers and persuading cohabitants to do the same. Then you can turn down the temperature by as much as 2C. 

Politicians risk appearing to be patronising or insensitive if they dish out advice on saving energy. But high energy prices will force people to wrap up. Lex reckons battery heated jackets could be in demand. They heat the person, not the home.

(CrunchBase) The Week’s 10 Biggest Funding Rounds: IDRx And Afresh Lead The Way

The Week’s 10 Biggest Funding Rounds: IDRx And Afresh Lead The Way In Down Week

July was another down month for venture funding, and if the first week of August is any indication, this month will not be any better. No U.S.-based startup raised even $125 million this week. For perspective, in the first week of August last year a startup would have needed to raise that just to be 10th on the list. We’ll see if August picks up after a slow start.
1. IDRx, $122M, biotech: The fight against cancer will always attract investment. Massachusetts-based IDRx, developing therapies to beat the deadly disease, became the latest to raise a tranche of cash from investors. The company emerged from stealth with a $122 million Series A co-led by Andreessen Horowitz and life science-focused Casdin Capital, according to the company. The startup is looking to bring combination therapies—where two drugs work together—to the forefront of cancer treatment. Venture capital funding to startups fighting cancer has increased in the last few years. In 2019 the sector raised $9.8 billion, but saw that rise to $16 billion in 2020 and to $21.5 billion last year, according to Crunchbase data.
2. Afresh, $115M, food: Artificial intelligence helps with everything from customer service to software design, so why not what’s on the shelf of grocery stores? San Francisco-based Afresh locked up a $115 million Series B round led by Spark Capital. The startup uses its AI-powered platform to help grocery stores optimize critical functions including ordering, inventory, merchandising and operations to help stores cut down on food waste while also driving up the bottom line. Afresh is looking to be in 10% of U.S. grocery stores by the end of the year and has partnerships with grocers in over 3,000 stores and 40 states. Founded in 2018, the company has raised nearly $148 million, according to Crunchbase.
3. Klaviyo, $100M, marketing: Developing better relationships with customers is what every online retailer seeks to do. Ideally they can do it through data and automation to make it happen easier and faster. That seems to be what Shopify is hoping for, as the e-commerce giant strategically invested $100 million into Klaviyo this week. The Boston-based customer data and marketing automation platform last raised a $320 million Series D at a pre-money $9.15 billion valuation in May 2021. Founded in 2012, the company has now raised more than $775 million, per Crunchbase.
4. (tied) Aisera, $90M, sales automation: We’ve already talked about automation and AI, so let’s combine the two. Palo Alto, California-based Aisera closed a $90 million Series D led by Goldman Sachs Asset Management and Thoma Bravo. The startup uses AI to help resolve both employee and customer support issues. Aisera has experienced more than 300% growth over the last year. The company attributes the growth in part to the economic downturn which has pushed employee efficiency. Founded in 2017, the company has raised nearly $165 million to date, according to Crunchbase data.
4. (tied) PayIt, $90M, fintech: Even in a down market, companies that have government contracts are sometimes the safest bet. Local, state and federal deals are consistent and less likely to be disrupted by an economic downturn. That could be one of the reasons Kansas City-based government payment platform PayIt closed a $90 million investment from Macquarie Capital Principal Finance this week. The startup helps the government set up digital functions like tax services and DMV payments; things that do not stop even in a downturn. Founded in 2013, the company has now raised nearly $195 million, according to Crunchbase data.
6. Parafin, $60M, fintech: San Francisco-based fintech infrastructure startup Parafin raised a $60 million Series B led by GIC. Founded in 2020, Paraffin says it has now raised $94 million.
7. Everytable, $55M, food: Los Angeles-based ready-to-eat food startup Everytable closed a $55 million Series C led by Creadev, Desert Bloom Food Ventures and Gullspång Re:food. Founded in 2016, the company has raised more than $87 million, according to Crunchbase.
8. Homeward, $50M, health care: San Francisco-based rural health care provider Homeward locked up a $50 million Series B co-led by ARCH Venture Partners and Human Capital. Founded in 2021, the company has raised $70 million, per Crunchbase data.
9. Terabase Energy, $44M, energy: Berkeley, California-based Terabase Energy raised a $44 million Series B co-led by Breakthrough Energy Ventures and Prelude Ventures. Terabase, founded in 2019, develops digital platforms to manage solar projects. The company says it has now raised a total of $52 million.
10. Atia Vision, $42M, medical devices: Campbell, California-based medical device developer Atia Vision closed a $42 million Series E led by Cormorant Asset Management. Founded in 2012, the company has raised more than $82 million to date, according to Crunchbase.

Big global deals
Deals were small everywhere this week, with none above $200 million. However, the three top deals did come from outside the U.S.
  • China-based textile firm NTX raised a $200 million Series C.
  • China-based biotech startup Sironax closed a $200 million Series B.
  • London-based digital-first home health care company Cera locked up a venture round worth approximately $157 million.

Barrons : Advertising Is Still Going Strong. Apple Wants In.

Advertising Is Still Going Strong. Apple Wants In.

Apple AAPL –0.14% has decided to crash the advertising party.

As a couple of Apple (ticker: AAPL) news sites picked up last week, the company recently posted a job listing for a “Senior Product Manager, Demand Side Platform.” Ad tech is complex, so here’s a translation: A “demand side platform” lets ad buyers buy inventory on multiple ad exchanges from a single interface, using automated bidding, which is also known as programmatic. The platform takes a little slice of each dollar deployed. There are a bunch of these DSPs. Meta Platforms (META) has Meta Ads Manager; Alphabet (GOOGL) has Google Ad Manager; Amazon.com (AMZN) offers Amazon DSP. And there are independents, too.

Apple said the new hire would “drive the design of the most privacy-forward, sophisticated demand side platform possible...innovating on some of Apple’s most confidential and strategic plans to design products that deliver business growth and experiences that exceed customer expectations.” The job posting says that the project will target ads placed in various Apple Services; what isn’t clear is whether Apple might eventually try to target the wider world of advertising across apps and websites.

Apple declined to comment on the posting or other elements of its ad strategy.

This all seems a bit nervy. Apple’s decision to adopt a policy called App Tracking Transparency has made it far harder for Meta’s Facebook and Alphabet’s YouTube to target and attribute advertising campaigns. Apple has taken the position that consumer privacy comes first, and it now requires iPhone users to opt in when apps request to track how people travel around the web. Most people say no.

The policy change has caused immense pain for the likes of Meta, YouTube, and Snap (SNAP). Earlier this year, Meta said that Apple’s policy change would reduce its advertising revenue this year by about $10 billion. Meta has argued that Apple’s approach is bad for small business, but that message has been trumped by Apple’s persuasive support of privacy.

For Apple to now be talking about building an advertising business of its own is sure to ruffle some feathers at Meta and other ad firms.

But, to be clear, it isn’t that Apple has shunned advertising. In fact, the company’s income statement includes a contribution from ads, although it’s hidden in the Services line of the report. In its latest quarterly filing with the Securities and Exchange Commission, Apple said that the largest contributors to its 12% growth in services revenue in the period were higher sales of advertising, cloud services, and AppleCare.

Evercore ISI analyst Amit Daryanani, who wrote about Apple’s new job listing in a research report this past week, notes that the iPhone maker in late July added two new ways for developers to advertise their wares in the App Store. One will allow ad placement on the Today tab, basically the site’s home page. And the other will allow ads touting “apps you might also like” to appear on individual app product pages.

I’ve recently written about Apple’s need to find big new markets to juice growth. Advertising could be part of the answer.

Daryanani thinks that Apple’s ad revenue from the App Store alone could reach $7.1 billion by 2025. “Advertising is a great growth opportunity for Apple, and their tremendous installed base gives them a competitive advantage that they have not effectively exploited in the past,” he writes.

Daryanani estimates that Apple’s ad business will generate $4 billion in revenue this year, or just 0.2% of the $600 billion online advertising market. He thinks that Apple can reach 2.25% of the digital ad market by 2025—and rake in $20 billion a year in ad revenue.

Needham analyst Laura Martin is also bullish about the potential for Apple’s advertising. In a note this past week, she pointed to the significant growth in Amazon’s ad business, which consists entirely of ads within its core e-commerce platform. Martin expects the Amazon ad business to reach $37 billion this year, up from $4 billion just five years ago. And she notes that ad revenue typically comes with 70% to 80% gross margins, so Apple’s profits from advertising would almost certainly grow faster than revenue. Martin thinks Apple would specifically target the market for mobile ads, which eMarketer estimates at $452 billion for 2022, growing to nearly $680 billion in 2026.

The challenge for Apple will be to balance its access to data on iPhones with its publicly stated focus on privacy. Martin thinks Apple can build an ad platform that effectively prevents personal information from leaking to third parties. But until it comes up with a real plan, doubts will remain.

Despite worries about a slowing economy—and the consequences for marketing budgets—there’s been a resurgence in advertising interest. Netflix (NFLX), which once swore that it would never have ads on its platform, has promised to offer an ad-supported subscription tier in early 2023.

And a few recent data points show that there’s still plenty of demand for advertising that can deliver customers. Yelp (YELP) shares soared Friday, after reporting a surprise spike in demand for local market ads, in particular for providers of home repair and contracting services.

In any case, Apple isn’t worried about this year’s outlook for advertising; it’s thinking about the opportunity five, 10, and 20 years from now. I have no idea what the world will be like in 2042, but I can tell you this: There will still be plenty of ads.