WSJ : The Key to Autonomous Driving? An Impossibly Perfect Map (Tom Tom)

The Key to Autonomous Driving? An Impossibly Perfect Map
Self-driving cars may eventually work together to create nearly real-time maps. But we’re not there yet.

To achieve the dream of autonomous vehicles and robots, it’s going to take much more than computer vision and artificial intelligence. Cars, drones, delivery bots, even our vacuum cleaners and robot chefs are going to need something that our ancestors developed millions of years ago: a sense of place.

“I definitely don’t think people understand how reliant autonomous cars are on the fidelity of the map,” says Mary Cummings, a professor of mechanical, electrical and computer engineering at Duke University. “If the map is wrong then the car is going to do something wrong.”

It turns out that, whether it’s Waymo’s self-driving cars or the many auto manufacturers relying on tech from Intel Corp.’s INTC -3.76% Mobileye, so-called “autonomous” vehicles are cheating, in a way. This is also true of models that are already commercially available, such as Cadillacs with Super Cruise.

Rather than perceiving the world and deciding on the fly what to do next, these autonomous and semi-autonomous vehicles are comparing their glimpses of the world with a map stored in memory. The incredibly detailed maps they rely on are what engineers call a “world model” of the environment. The model contains things that don’t change very often, from the edges of roads and lanes to the placement of stop signs, signals, crosswalks and other infrastructure.

That self-driving cars—and eventually, all other forms of autonomous robots—require such a map has big implications for who will need to partner with whom in the autonomous driving space. It implies a great deal of collaboration, or at least licensing, because the amount of data and engineering required to build these maps is so gargantuan. It means that, at least for the foreseeable future, no matter how sophisticated a company’s self-driving technology, it must engage in a massive effort or else partner with someone capable of making an ultra-detailed map of every road on which they might drive—companies like Ushr, TomTom and Here.

In urban environments where global positioning systems can be inaccurate, a vehicle must navigate by landmarks, says Sam Abuelsamid, a senior analyst with Navigant research who specializes in mobility. Once a vehicle is navigating using lidar—a 3-D laser view of the environment—along with cameras and possibly radar, it can cross-reference certain buildings, lamp posts or street markings, to identify its stretch of the road down to the centimeter, he adds.

When the car knows precisely where it is, it can follow predetermined routes in its memory, simplifying the driving process. When the Super Cruise system is activated in a Cadillac, the car stays in its lane by following a route that has been determined ahead of time, says Christopher Thibodeau, senior vice president and general manager at Ushr. Ushr makes the Super Cruise system’s maps—terabytes of map data boiled down to a few hundred megabytes of relevant route information.


It’s not quite as if the car is driving on rails, but it’s close. Mr. Thibodeau says it allows the AI in the car to concentrate only on the things in its environment that are changing: cars, pedestrians, unexpected obstacles, construction and the like.

This is especially important because self-driving is already a difficult problem both in terms of the number of sensors it requires and the amount of computing power. A typical fully autonomous self-driving car is drawing 2,000 to 4,000 extra watts of power from its electrical system to operate all of its sensors and computers, Mr. Abuelsamid says.

The car must combine data coming from a variety of sensors—a problem called “sensor fusion” that is an area of intense research—into a single consensus view of reality.

If something goes wrong, the consequences can be dire. Uber Technologies Inc.’s self-driving car killed a pedestrian in March, and more than one Tesla has crashed into the back of a stopped fire truck at highway speeds, apparently while its Autopilot driver-assistance system was on.

Before autonomous vehicles can truly be trusted to operate without human supervision, the computers tasked with driving according to those maps while looking out for unexpected hazards must be much more powerful than those in use today, says Mr. Abuelsamid. Self-driving chips from both Nvidia Corp. and Mobileye are undergoing rapid leaps in computing power, on the order of a tenfold improvement every time these firms release a new iteration.

For Nvidia and Mobileye-owner Intel, this means new opportunities to enter a market that has long been dominated by specialist manufacturers of automotive-grade microchips, such as NXP Semiconductors NV, Mr. Abuelsamid says. But it could also hurt companies that were early to the race to autonomy, such as Tesla Inc.

“Frankly both the sensing and compute capabilities that [Tesla’s vehicles] have today are not capable of providing full self-driving under all conditions, which is what [Chief Executive Elon Musk] said they could do,” says Mr. Abuelsamid. That might change. Mr. Musk has said that Tesla is developing its own AI chip for self-driving, and that it will be a “drop-in” replacement for the existing hardware in its cars. It’s not clear when this replacement computer for Tesla vehicles will arrive.

Eventually, Dr. Cummings says, the hope is that all self-driving vehicles will contribute to a collective database that updates in near real-time as roads and conditions change. Mobileye has already promised to create such a database with camera data coming from its partners, including Nissan Motor Co. , Volkswagen AG and BMW AG .

By the end of 2018, Mobileye will be gathering data from three million vehicles’ forward-facing cameras, which will be compiled into a database that will be usable for driver assist and self-driving systems starting in 2019, says Jack Weast, vice president of autonomous vehicle standards at Mobileye.

Others, such as Waymo, are apparently trying to go it alone, since data and algorithms are a huge competitive advantage in the race to fully autonomous driving.

But the cost of such precision mapping sensors at the moment is very high, says Mr. Thibodeau, adding at least $100,000 to the price of each vehicle. These systems will become cheaper, but he believes it will be at least three to five years before they make it onto the kind of vehicles that private citizens could buy, and that it will take many years after that for them to achieve sufficient density on the world’s roadways to contribute to detailed maps suitable for autonomous driving.

How often we re-map all our roads is of critical importance. Ushr’s current database covers about 200,000 miles of controlled-access highways in North America, and even so, the amount of roadway that changes in that database is between 6,000 and 8,000 miles a year, says Mr. Thibodeau.

Another challenge for such a system, says Dr. Cummings, is that any central database used by autonomous vehicles would be a prime target for hackers. Not only would a breach have dire consequences, but so would corrupting the map from the outside—in other words, attempting to fool autonomous vehicles by changing things in their environment.

That maps are so critical to self-driving shows, once again, that the road to fully autonomous fleets is longer than we were told—and pushes back the arrival of self-driving cars even further.

>>> Universal Coal could consider acquisitions outside South Africa to diversify

Universal Coal could consider acquisitions outside South Africa to diversify portfolio – CEO
11 OCT 2018
Universal Coal [ASX:UNV], the ASX-listed South Africa-focused multi-mine thermal coal producer, could look at options to acquire companies or projects in other countries, including Australia, CEO Tony Weber said.

While the AUD 159.35 m (USD 113.02m) market capitalization company does not have immediate or official plans of doing deals outside of South Africa, Weber said it make sense to diversify its portfolio.

“Personally, I will be honest, I do think it would be good for geographical diversification as well as product diversification (to have a presence in other countries),” he told Mergermarket.

Universal Coal is currently bedding down the acquisition of the North Block Complex (NBC) from Exxaro Coal Mpumalanga and Exxaro Coal, which is expected this quarter, before actively pursuing other deals, the CEO said. Following recent developments on making the deal unconditional, Universal Coal expects the NBC assets to transfer during 2Q19.

Once that deal is complete, it will look to acquire value-accretive production and pre-development projects, most likely in the thermal coal space, which is abundant in South Africa (over coking coal), Weber said.

Universal Coal’s current growth profile that it is pitching to shareholders and the wider market is based on its current portfolio, which includes forecasted 6m tonnes per annum of production growing to 8mtpa in 2019, he said.

As such, while there are “plenty of opportunities” to acquire in South Africa in particular, as well as in Australia, which the company had historically looked at, Universal Coal is not in a position where it will be forced to acquire to grow scale, Weber added. It will be selective in its approach, he continued.

According to the CEO, Australia is an attractive region and if its operations were located there rather than in South Africa, the company would likely enjoy a valuation that is multiples higher.

“We are discounted from a country risk perspective,” Weber noted.

Meanwhile, the company is now awaiting a binding indicative offer from a consortium of investors led by Ata Resources, which is expected by the end of the year, Weber said. In a statement filed to the Australian Securities Exchange (ASX) on 18 September, Ata Resources, on behalf of the consortium, proposed to offer a cash consideration of AUD 0.35 for each Universal Coal share to acquire all the issued shares of the company.

The company’s share price is today trading at AUD 0.30.

Universal Coal is also continuing to assess options regarding its coking coal projects, as no deal has materialized since it began looking at bringing on board offtake partners keen on acquiring equity stakes early in the year. Weber said the process has not been a top priority.

Universal Coal reported its full-year financial results for the year to 30 June, showing that revenue was up 112% to AUD 316m on the previous corresponding period, while it had AUD 38.6m in group cash. FY19 EBITDA is expected to be AUD 93m, an increase of 29% from the prior year, based on forecasted growing production, according to a media statement released yesterday (10 October).

Weber is a co-founder of Universal Coal and has been a mining engineer with more than 15 years’ experience in project assessment, finance, development and operations. He was previously an executive director of Australian listed Platinum developer Nkwe Platinum [ASX: NKP].

Universal Coal uses HSBC Bank Australia, Investec, and First National Bank for banking, while its solicitors are Mayer Brown International and Webber Wentzel Attorneys.

Nikkei : ASEAN growth forecasts take hits from trade war and market turmoil

ASEAN growth forecasts take hits from trade war and market turmoil
Survey of economists reveals fears for exports and currencies over long haul

Economists in Southeast Asia have lowered their growth projections as the U.S.-China trade war heats up and emerging markets face deepening turmoil, a new survey shows.

The 2018 growth forecast for the five biggest Association of Southeast Asian Nations economies -- Indonesia, Malaysia, the Philippines, Singapore and Thailand -- was cut by 0.1 of a percentage point to 4.9% in the latest quarterly survey by the Japan Center for Economic Research and Nikkei, versus the previous poll in June. This is the first downward revision for the ASEAN5 this year.

The impact of the trade war and market turbulence has been limited so far. But the surveyed economists are concerned that weaker exports will gradually take a toll. They also expect continuous downward pressure on currencies like the Indonesian rupiah, along with further interest rate increases across the region -- two factors that threaten growth.


JCER and Nikkei conducted the survey from Sept. 7 to 27, collecting 46 answers from economists and analysts in the ASEAN5 and India.

The weighted average growth forecast for the ASEAN5 in 2018 was reduced as the outlooks for Indonesia, Malaysia and the Philippines darkened. The 2018 forecast is lower than the 5.0% rate achieved in 2017; the 2019 forecast was also revised down by 0.2 of a point, to 4.8%.

For now, Asian economies remain relatively steady despite the trade war and heavy pressure on emerging markets such as Argentina and Turkey. Wisnu Wardana of Bank Danamon Indonesia said that "there have not been any explicit effects from the trade war to the domestic economy."

Jonathan Ravelas of BDO Unibank, assessing the Philippine economy, said growth is "still being driven by private and government spending."

Economists are wary of the longer term, however. "The potential downside risks would heighten the longer the trade war continues," warned Randolph Tan of the Singapore University of Social Sciences.

"My main concern is slower export growth in 2019 due to a high inventory pileup for this year, in response to the threat of the trade war," said Amonthep Chawla of CIMB Thai Bank.

Dendi Ramdani of Bank Mandiri in Indonesia pointed out that the problems in Argentina and Turkey triggered "a lot of capital outflows and significant currency depreciation," expressing concern that Indonesia's import-oriented industries "will suffer from currency depreciation."

Of course, conditions differ from country to country within the ASEAN5. Thailand is expected to post brisk growth for 2018, supported by still-strong exports. Its 2018 forecast was revised upward by 0.2 of a point to 4.6%.


The Philippines' growth projection for 2018 came to 6.4%, the highest among major ASEAN countries but 0.4 of a point lower than previously forecast. Inflation and a weaker peso are key concerns.

In Malaysia, the policies of Prime Minister Mahathir Mohamad are creating some headwinds. This includes the decision to abolish the goods and services tax in June and to reintroduce a sales and services tax in September, as well as plans to review infrastructure projects. The 2018 forecast was revised down by 0.4 of a point to 4.9%.

India's growth forecasts for fiscal 2018/19, which ends in March, remained unchanged at 7.4%. The country recorded 8.2% growth for April-June, the fastest pace in more than two years, though this was partly a correction from the previous year's low numbers, when the introduction of a new GST sowed confusion.

Economists see Indian growth cooling after the July-September period. "Momentum is expected to moderate amid a fading favorable base effect, fiscal constraints, higher crude oil prices, higher interest costs and a weakening rupee," said Tirthankar Patnaik of Mizuho Bank.

The currencies of Indonesia, the Philippines and India have all been depreciating sharply against the dollar. The rupiah, peso and rupee fell 3.6%, 1.4% and 5.8%, respectively, in July-September, and about 10%, 9% and 14% over a ninth-month period.

Economists do not expect the pressure to abate before the end of the year. "With various external factors weighing down on the peso, it is expected to continue its downward trend," said Carlo Asuncion of Union Bank of the Philippines.

The central banks of Indonesia, the Philippines and India have repeatedly raised their policy rates this year to defend their currencies and maintain price stability. Some economists expect additional hikes in Indonesia and India before the year is over. Dharmakirti Joshi of CRISIL, an analytics unit of Standard & Poor's, commented on Indian monetary policy: "The Monetary Policy Committee can hike the repo rate one more time [in fiscal 2018/19] if upside risks to inflation materialize."

Higher rates are also expected in other countries including Thailand toward 2019.

Asked to identify the main risks facing their economies, respondents cited the "rise of protectionism" as the most serious matter for Malaysia, Singapore and Thailand. "Domestic currency depreciation" was the greatest risk facing Indonesia and India. "Inflation" was seen as the most significant danger in the Philippines.

Meanwhile, the IMF issued an update to its World Economic Outlook and is now predicting 3.7% global growth in 2018 and 2019. This is down from its July forecast of 3.9 percent growth for both years.

FT : Is the bull market ending and what happens next?

Is the bull market ending and what happens next?
As Treasury yields creep up, equities lose their shine but the market momentum look set to return

Equity rallies are like riding an escalator. But when the market turns, the exit comes via the elevator.

This week’s sudden descent should really come as no surprise to investors. The US bull market run has looked very long in the tooth for some time. Investors have been seeking defensive areas over the summer while tech juggernauts Apple and Amazon both surged past the magical $1tn market capitalisation number.

Wall Street has also outstripped the rest of the world by a stunning margin in performance terms this year, a divergence that has worried investors in recent weeks and spurred some rotation away from US equities and towards Japan and other markets.

So, clear signs of a top were there for all to see.

The catalyst for pushing the ground-floor button has arrived in the form of stronger US data and more hawkish chatter from Federal Reserve officials. It is a combination that finally punched the 10-year Treasury yield well north of 3 per cent to its highest level since 2011, an outcome that has particularly hit tech shares — long Wall Street’s leadership group.

US equities and, in particular, fast-growing tech companies had benefited from a 10-year Treasury yield camped below 3 per cent. Lower long-term yields make stocks look attractive, an approach best summed up by the term Tina — “there is no alternative” — which was distinctly fashionable until yields started slowly climbing this year.

But they really suffered on Wednesday, with the tech-heavy Nasdaq Composite dropping 4.1 per cent, its biggest one-day decline since June 2016, and the NYSE Fangs+ index down 5.6 per cent. The S&P 500 had its worst day since February, falling 3.3 per cent.

It is hardly surprising that owning US tech has been the most crowded trade for some time — these companies are growing rapidly and have been big beneficiaries of tax reform. It also reflects the allure of momentum, whereby investors stick with the winners even through the dips, akin to climbing the stairs of a market rally. The problem is that any kind of herding behaviour in markets eventually ends badly.

Higher long-dated yields means that the cash flows being generated by fast-growing stocks no longer look so rich so a reckoning must occur, as we have seen.

Indeed, one very important sector illustrates how momentum can work very harshly against a portfolio. Chipmakers, which sit at the coalface of the global supply chain, have led the sell-off for tech this week, as Sino-US tension has moved well beyond trade. The Sox (aka the Philadelphia Semiconductor index) plunged 4.5 per cent on Wednesday and has decisively broken below a key measure of momentum that has held since March 2016.

In effect, the Sox hoisted a huge red flag for tech and if we look at the Faangs (Facebook, Amazon, Apple, Netflix and Google) and Nasdaq, the message is getting through. Wednesday’s Wall Street market rout is the clearest sign yet that investors are worried about the outlook for the global economy as Sino-US relations go from bad to worse. Weaker global growth does matter for large US companies, already facing headwinds on their foreign revenues from a stronger dollar.

So, where do we go from here?

As the sell-off intensified in New York on Wednesday, one trader highlighted that when the 10-year yield was at current levels in 2011, the forward multiple on the S&P 500 was 13.1 times, whereas it now stands near 16.5 times. That leaves the market trading at quite a premium to valuations seen then.

Now, two things can help steady Wall Street and global equities. The latest US earnings season begins on Friday when JPMorgan reports, and robust results will help lower forward price-to-earnings ratios. We could also see long-term yields drop and thus moderate the pressure on equity valuations.

What is more likely is a combination of the two along with a further retreat in the market. The weaker hands will get washed out and I suspect when big tech reports later this month, momentum may well resume as cheaper stock prices and strong earnings bring out the buyers.

Bull markets die from recessions and for the US that remains a low risk at this stage of the cycle as the tailwind from tax cuts continues playing out. Although we are nearing the end of the cycle, stock market leadership tends to persist right up until the music stops — as we saw with banks and financials in 2007.

FT : US-China trade war will last over a year, predict economists

US-China trade war will last over a year, predict economists
Nikkei survey shows analysts expect Chinese economic growth to slow to 6.3% next year

Concerns are spreading over the impact a prolonged trade war between the US and China could have on the Chinese economy, a joint survey by Nikkei and Nikkei Quick News of China-focused economists showed.

The economists estimate that the country’s real gross domestic product grew at an annualised rate of 6.6 per cent in the period between July and September, slightly slowing down from 6.7 per cent for the April-June period.

Many experts believe the trade war will persist for a long time, potentially putting the brakes on the world’s second-largest economy.

The US and China have slapped retaliatory tariffs on each other’s goods and the prospects for a dialogue between the two countries is fading. A deterioration in manufacturers’ sentiment is one impact gradually surfacing in the Chinese economy.

“The trade war is the biggest risk to the Chinese economy, not only for the export sector but also the related supply chain,” said Iris Pang, an economist focusing on Greater China at ING Bank. “Among all corporates, SMEs [small and medium sized enterprises] would be hit most. As a result, manufacturing and investment in the manufacturing sector would grow slower.”

The structural reforms Beijing initiated before the trade war became full blown are adding downward pressure on the economy.

Yao Wei, chief China economist at Société Générale Corporate and Investment Banking, said: “More signs of economic slowdown have emerged as deleveraging policies start to bite.” She added that “trade tensions look unlikely to be resolved quickly and may begin to cause material drags on exports”.

The full-year growth estimate for 2018 is 6.6 per cent. Those for 2019 and 2020 are 6.3 per cent and 6.2 per cent, respectively. The figures are unchanged from the previous survey conducted in June. The slowdown is expected to be inevitable, however, given the 6.9 per cent growth recorded in 2017.

The economists gauged the impact of the trade war under a basic scenario that the economy is slowing moderately.

“Trade friction with the US looks set to continue, and this will be an unavoidable drag on growth. However, recent policy stimulus measures will offset the damage from trade by boosting the domestic economy, which should prevent too much of a slowdown,” said Richard Jerram, chief economist at Bank of Singapore.


At its politburo meeting in July, the Chinese Communist party decided to continue proactive fiscal policies and prudent and neutral monetary measures as means to support the economy.

“That direction will help improve the negative sentiment in the financial markets and stabilise the country’s monetary system during the three months through December,” said Cheng Shi, chief economist and head of research at ICBC International. Mr Cheng continued: “The positive impact of the measures will become visible in the January-March period after they directly stimulate investment and consumption.”

Fan Xiaochen, a director at MUFG Bank, who was also positive on the measures, said: “Healthy and proactive fiscal and monetary measures will help attract new investments, and the economy will continue growing at a stable pace of more than 6 per cent.”

On the other hand, some analysts remain cautious. “We expect infrastructure growth to recover from its low but maintain single-digit growth in the coming year,” said Peter So, managing director and co-head of research at CCB International Securities.

The risk factor that will most likely put downward pressure on the Chinese economy is the possible worsening of the trade war between the US and China; the largest number of analysts surveyed picked this answer from a number of options.

“We estimate that an all-out trade war could shave as much as 1.5 per cent off China’s GDP growth in the coming 12 months, all else being equal,” said Aidan Yao, a senior economist on emerging Asia at Axa Investment Managers Asia Ltd.

On the whole, analysts remained pessimistic about the future of the trade dispute between the world’s two largest economies. Asked about the outlook for the conflict in the next 12 months, only five of the 16 analysts said it would calm down after the US midterm elections in November, while six said the situation would remain unchanged and the rest expected it to get worse.

“Both the US and China do not seem too interested in a deal. With Mr Trump’s determination to correct the trade deficit and be hard on its growing rival China, we do expect him to go further and look into tariffs on the remaining $260bn,” said Susan Joho, economist at Julius Baer.

Kenny Wen, wealth management strategist at Everbright Sun Hung Kai, said that even if tensions ease somewhat after the US elections, a battle could break out over technology and currencies, in which case the US would take aim at China.

As for the effect of the US-China trade war on the Chinese economy, out of multiple options, many economists chose blows to exporters and the high-tech industries. Xie Yaxuan at China Merchants Securities expressed concern that the US’s additional tariffs target the high-tech industry, China’s most important sector in the long run.

Many economists expect the People’s Bank of China to continue its accommodative monetary policy. Most economists predict the central bank will lower its reserve requirement ratio — the percentage of deposits that must be held by commercial banks over the next 12 months — by 0.25-0.5 percentage points several times.

“The PBoC is concerned about the growth outlook, thus efforts on deleveraging are sidelined and ‘economic stability’ has gained top priority,” said Sean Taylor, Asia-Pacific chief investment officer at DWS.

More economists expected the renminbi to weaken against the dollar compared with the previous survey. The average forecast for the renminbi was 6.85 to the dollar at the end of 2018, 6.85 at the end of 2019, and 6.71 at the end of 2020.

>>> US Gapping down

 With stock markets continuing to slide in the pre-market, many stocks are trading lower. The following represents stocks trading lower due to specific news items

Gapping down

In reaction to disappointing earnings/guidance:

  • FLR -12.8% (preannounces Q3 results with revs below consensus), VOXX -5.7%, WBA -2.4%, BKE -1.8% (reports September comps -2.4% y/y) .

Other news:

  • SPNE -11% (commenced underwritten public offering of shares of its common stock), SQ -9.2% (CFO Sarah Friar to step down in order to become CEO of Nextdoor)
  • BOLD -3.8% (prices underwritten public offering of 5.2 mln shares of its common stock at a price to the public of $29.00 per share)
  • CVS -2.4% (CVS Health provides update; will expand Board to include three additional Aetna Directors; names Eva Boratto as CFO)
  • JEC -1.7% (following FLR downside guidance)

Analyst comments:

  • HII -2.9% (downgraded to Sell from Neutral at Goldman)
  • DLPH -2.5% (downgraded to Neutral from Buy at Goldman)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance
:

  • DAL +2.4%, ZUMZ -0.7% (Zumiez reports Sept comps of +1.2% vs +9.3% year ago and +9.5% last month)

Other news:

  • CGEN +20.3% (Compugen & Bristol-Myers Squibb (BMY) enter clinical trial collaboration to evaluate the safety and tolerability of Compugen's COM701 in combination with Opdivo in patients with advanced solid tumors)
  • CRSP +14.6% (CRISPR Therapeutics and Vertex announce FDA has lifted the Clinical Hold on the Investigational New Drug Application for CTX001 for the Treatment of Sickle Cell Disease)
  • TUP +8.8% (CFO Michael S. Poteshman announces upcoming retirement)
  • NTLA +7.6% (following CRSP / VRTX news)
  • EDIT +6.6% (following CRSP / VRTX news)
  • ACRX +6.5% (continued strength after 35% move higher on Wed)
  • KTWO +4.2% (announces receipt of FDA clearance including surgical guidance that enhances MESA platform using patient-specific rods and rails)
  • TAHO +3.8% (Guatemalan Constitutional Court finalized resolution)
  • GPRE +3% (to sell three ethanol plants)
  • ABX +2.3% (preannounces Q3 sales and production; reaffirms FY18 production)
  • EMKR +2% (Northern Right Capital increases holding/turns active with 5.5% stake)
  • RIGL +1.6% (announces that the European Medicines Agency has validated the Marketing Authorization Application for fostamatinib in adult chronic immune thrombocytopenia)

Analyst comments:

  • LITE +0.8% (upgraded to Overweight from Neutral at JP Morgan)