>>> Intelsat makes strategic investment in Africa Mobile Networks

Intelsat makes strategic investment in Africa Mobile Networks
16 OCT 2018
Intelsat S.A. [NYSE: I], the Luxembourg-based satellite communications company, has made a strategic investment in United Kingdom-based Africa Mobile Networks to accelerate the deployment of mobile connectivity to unserved communities in sub-Saharan Africa.
Press release:
Intelsat S.A. (NYSE: I) (“Intelsat”), operator of the world’s first Globalized Network and leader in integrated satellite communications, and Africa Mobile Networks (AMN) announced today that Intelsat has made a strategic investment in AMN. The purpose of the investment is to accelerate the deployment of mobile connectivity to unserved communities across multiple countries in sub-Saharan Africa.
Given the economic and geographic complexities of expanding mobile connectivity to the ultra-rural areas of Africa, many mobile network operators (MNOs) face barriers when trying to deploy their networks to these areas. AMN provides MNOs with a network-as-a-service (NaaS) solution in which AMN will fund, build and operate the ultra-rural network for the operators. As a result, African mobile operators will be able to extend their coverage with minimal opex and capex risk, enabling them to grow their subscriber and revenue base, and better serve all their customers.
At the core of AMN’s solution is a low-cost, small cell solution that is powered by a highly reliable solar-based system which can be rapidly deployed and installed in less than 6 hours. As part of the long-term agreement, AMN will leverage the power, performance and efficiencies generated by Intelsat’s next-generation Intelsat EpicNG high-throughput satellites (HTS), as well as the 23 Intelsat satellites covering the continent to provide the optimal balance between coverage and high-throughput for the enabled sites.
Once installed, the sites will connect over the Intelsat fleet to the core of the mobile network operator and deliver 2G mobile services, such as GSM voice, SMS and GPRS/EDGE packet data, with the ability to upgrade the base stations to 3G and 4G as data demands allow.
“The high performance, redundancy and flexibility of Intelsat’s satellite fleet over Africa made them an ideal partner for us,” said Michael Darcy, AMN’s chief executive officer. “Intelsat shares our view that mobile coverage is not spreading quickly enough and as such, invested in AMN’s vision of installing a cell site in every African village. Together, we can accelerate the deployment of mobile connectivity and work to ensure that communities, wherever they are located, have equal access to high quality, sustainable and affordable broadband connectivity.”
Jean-Philippe Gillet, Intelsat’s vice president and general manager, broadband, said, “Bringing mobile connectivity to the most rural parts of Africa requires hybrid networks and innovative business models to truly close the business case. By investing in and partnering with AMN, we can rapidly, and cost effectively expand an MNO’s reach and deliver critical connectivity to communities who many thought were impossible to connect. We look forward to our partnership with AMN and the ability to deliver a network that will support the social and economic development of communities throughout sub-Saharan Africa.”

NYT Dealbook : C.E.O.s are America’s New Diplomats

Good Tuesday morning. Evan Spiegel of Snap, Larry Fink of BlackRock, and Steve Ballmer of USAFacts and the L.A. Clippers will all be speaking at our “Playing for the Long Term” conference on Nov. 1 at Jazz at Lincoln Center in Manhattan. Register to attend. (Was this email forwarded to you? Sign up here.)
Dimon, Schwarzman and Fink show that business leaders are now diplomats
The Saudi government’s so-called Davos in the Desert investment conference took a serious hit over the past 48 hours when three Wall Street executives withdrew over the disappearance and possible killing of the Saudi journalist Jamal Khashoggi. Andrew has the back story on how Jamie Dimon of JPMorgan Chase, Steve Schwarzman of Blackstone and Larry Fink of BlackRock decided to bail.
Their decision gave other executives cover to withdraw. But as the WSJ points out, plenty still plan to attend. And pulling out of the conference doesn’t mean cutting business ties with the Saudis altogether. (The talent agency Endeavor is an exception, trying to unwind a $400 million deal with the Saudis.)
The U.S. government’s response so far has been inaction. The Treasury secretary, Steven Mnuchin, is still scheduled to attend the conference. And President Trump floated the idea of “rogue killers” being responsible for Mr. Khashoggi’s apparent death (though the Saudi government is reportedly weighing admitting he died). That has left a void that Andrew says business leaders are starting to fill:
How a conference known as the Davos in the Desert turned into a crucible for these executives and others demonstrates the curious change the world has seen under a businessman president: America’s moral compass being steered by the C-suite, rather than the Oval Office.
More Saudi news: The Khashoggi controversy is giving deal makers pause. Saudi threats to retaliate against any punishment may break a 45-year taboo. And while Saudi Arabia is the biggest buyer of U.S. arms, it doesn’t spend as much as Mr. Trump says.

>>> US Early premarket gappers

Early premarket gappers

Gapping up:

  • SEND +13.5%, HQCL +9.8%, ADBE +5.5%, CGC +4.2%, ULBI +4%, UNH +3.4%, CRY +3%, MS +2.3%, WERN +1.6%, CRM +1.6%, JBHT +1.5%, DVN +1.1%

Gapping down:

  • JELD -13.3%, CRMD -12.8%, IGC -6.7%, TWLO -3.5%, ACRS -2.3%, PANW -2%, BLK -1.2%


9to5 : Taiwan suppliers ‘cautious’ about iPhone XR orders despite analyst optimi

Taiwan suppliers ‘cautious’ about iPhone XR orders despite analyst optimism

Taiwanese suppliers are said to be ‘cautious’ about iPhone XR orders, despite an analyst report yesterday suggesting that the new lower-priced model will do better than the iPhone 8 did in its launch quarter …
























Digitimes said suppliers were uncertain that iPhone XR orders would be sufficiently strong to overcome a flat global market for smartphones, and a declining one in China.
Despite the iPhone XR slated for launch in the latter half of October, Taiwan-based suppliers engaged in the Apple supply chain remain cautious about orders for the new iPhone series for the rest of 2018, according to industry sources.
If sales of the upcoming iPhone XR, which will be priced lower than the XS models, fail to stimulate the overall demand for iPhones, said the sources, Apple may slow down its pace of orders.
Citing unnamed sources, the site says that some suppliers are predicted to post weak sales for the final quarter of the year – including A-series chip supplier TSMC.
TSMC, for example, will likely generate lower-than-expected revenues in the fourth quarter, which may prompt the foundry to revise downward its sales guidance for all of 2018, the sources continued.
There’s little in the way of hard information in the report, and with iPhone XR orders not yet open, it’s hard to see how suppliers could have any meaningful insight into likely sales. Digitimes is mostly reporting what supply chain commentators believe about the attitude of suppliers, which is as vague as it gets.
There is just one piece of specific data in the report.
Largan Precision, another Apple supplier specializing in camera lens, disclosed recently that shipments are expected to decrease in October and drop further in November. Order visibility for December is still unclear, the company also warned.
But the only data Largan will have at this stage is based on sales of the iPhone XS and other models, rather than iPhone XR orders. In the main, any supply-chain pessimism is most likely founded in the state of the smartphone market as a whole rather than anything specific to the XR.

>>> BlackRock CEO Larry Fink CNBC interview

BlackRock CEO Larry Fink CNBC interview
  • Saw some de-risking in equities; some people ran to cash. However, overall company had positive mutual fund inflows.
  • Stocks are in a correction phase.
  • Market participants are much more nervous.
  • Big wage pressures in the economy.
  • Not worried about inflation at the moment.
  • Lack of housing affordability has increased.

>>> Johnson & Johnson beats by $0.02, beats on revs; raises FY18 outlook

Johnson & Johnson beats by $0.02, beats on revs; raises FY18 outlook
  • Reports Q3 (Sep) earnings of $2.05 per share, $0.02 better than the S&P Capital IQ Consensus of $2.03; revenues rose 3.6% year/year to $20.35 bln vs the $20.05 bln S&P Capital IQ Consensus.
  • Co raises guidance for FY18, sees EPS of $8.13-8.18 vs. $8.15 S&P Capital IQ Consensus, and compared to $8.07-8.17 prior; sees FY18 revs of $81.0-81.4 bln vs. $81.26 bln S&P Capital IQ Consensus, and compared to $80.5-81.3 bln prior.

>>> Omnicom beats by $0.11, reports revs in-line

Omnicom beats by $0.11, reports revs in-line (69.50)
  • Reports Q3 (Sep) earnings of $1.32 per share, $0.11 better than the S&P Capital IQ Consensus of $1.21; revenues fell 0.1% year/year to $3.71 bln vs the $3.68 bln S&P Capital IQ Consensus.
    • Net income - Omnicom Group Inc. and diluted earnings per common share in the third quarter of 2018 includes a net after tax increase of $18.2 million and eight cents per share, respectively, as a result of a net gain on dispositions of certain subsidiaries, less charges in connection with repositioning actions as discussed further below

>>> Wal-Mart ahead of annual meeting updates FY19 guidance to include Flipkart d

Wal-Mart ahead of annual meeting updates FY19 guidance to include Flipkart dilution, provides FY20 outlook (93.82)
  • The company reiterates its FY19 total sales growth expectations and updates FY19 GAAP and adjusted EPS to include the expected 25 cents per share Flipkart dilution.
    • Co now sees FY19 Adj-EPS $4.65-4.80 (Prior $4.90-5.05) vs $4.82 S&P Capital IQ Consensus Estimate
  • FY20 Guidance:
    • Walmart expects total FY20 sales growth to be 3 percent or greater, negatively affected by about 100 basis points due to the deconsolidation of the Brazil operations and planned reduction in tobacco sales at Sam's Club.
    • Walmart U.S. comp sales growth is expected to be in a range of 2.5 percent to 3 percent and eCommerce net sales growth is expected to be around 35 percent for FY20.
    • FY20 EPS is expected to decline by a low single digit percentage range versus FY19 adjusted EPS. Excluding Flipkart, EPS is expected to increase by a low to mid-single digit percentage range versus FY19 adjusted EPS.