Wednesday, December 2, 2015

Qualcomm said to face Europe antitrust complaint on pricing

Qualcomm said to face Europe antitrust complaint on pricing

[BRUSSELS] The European Union is preparing an antitrust complaint against Qualcomm Inc over suspected predatory pricing tactics that could hobble smaller rivals, according to three people familiar with the probe.
Regulators are in the final stages of preparing a so-called statement of objections, based on a complaint by a unit of Nvidia Corp, that asked the EU to act against predatory pricing for mobile-phone chips, the people said. Qualcomm designs chipsets that power most of the world's smartphones, licensing its technology across the industry.
Qualcomm would add to a growing list of US technology companies to face EU antitrust action, following probes into Google, Microsoft Corp and Intel Corp. A statement of objections may lead to fines, capped at 10 per cent of yearly global revenue, which can be avoided if a company agrees to make changes to business behavior.
"We have been cooperating with the European Commission from the outset of this matter and believe our business practices are lawful under EU competition rules," said Christie Thoene, a Qualcomm spokeswoman. "We believe competition in the sale of wireless chips remains strong and dynamic."
Regulators are less advanced with another probe into whether the company grants payments, rebates or other financial incentives to customers in returning for buying Qualcomm chipsets. Another case that focused on complaints that the company was charging excessive royalties on patents was dropped in 2009.
TIMING UNCERTAIN
A draft complaint in the predatory pricing case, formally opened in July, is being discussed by EU officials and it's not certain when it will be issued, said one of the people.
The European Commission declined to comment. San Diego-based Qualcomm declined to immediately comment.
Icera was bought by Nvidia, a maker of graphics chips, for US$367 million in 2011. Nvidia filed a lawsuit against Qualcomm in the UK courts in September that didn't give details of its claims.
Qualcomm was fined US$975 million in February to settle a Chinese antitrust investigation. It also agreed to offer local companies a discount on technology licensing. The company has also disclosed that it's facing possible investigations in the US and Korea.
BLOOMBER
G

Find MH370: Next job for theory used to show existence of God

Find MH370: Next job for theory used to show existence of God

[SYDNEY] The 18th-century statistician behind the latest search for Malaysia Airlines Flight 370 is so influential in modern-day logic that his work has been used to show the existence of God.
After hunting in vain for almost two years, Australian authorities said on Thursday they've narrowed down the missing jet's most likely location to a new "hot spot" in the southern part of a 120,000 sq km zone. Bayesian analysis, based on the probability theory of Thomas Bayes, has proved central to mapping out the probable resting place of the aircraft.
The Australian Defence, Science and Technology Group used Bayes' statistical approach to crunch data on satellite communications, aircraft dynamics and the environment to refine the search area.
So why has an idea developed by an English Presbyterian minister become so important centuries after his death in 1761?
Bayes' law or rule, as it's now known, describes the probability of an event taking place once other conditions are taken into account. Those conditions might include previous studies and experiments, or even human bias weighing on the data.  At the heart of the approach is the quantification of uncertainties - calculations that are continually updated as new information arises.
"It's a very natural learning cycle," said Kerrie Mengersen, a professor at the Queensland University of Technology in Brisbane who has studied Bayesian statistics for more than 20 years. "It allows in a very repeatable way the inclusion of different sources of information."
Modern computer-processing power now allows us to calculate the uncertainties that Bayes once theorised, making the approach helpful in a range of areas from medicine and genetics to defence and finance, said Prof Mengersen. 
Bayesian analysis has permeated financial markets. Former Federal Reserve Board chairmen Alan Greenspan and Ben S Bernanke and current Australian central bank governor Glenn Stevens have all acknowledged the influence of Bayes on policy making.
In his 2003 book, The Probability of God, Stephen D Unwin ran Bayes' equation to argue that God exists. The technique helped find the lost nuclear submarine USS Scorpion in 1968 and was used in the successful search for Air France Flight 447, almost two years after it plunged into the Atlantic Ocean in 2009.
In the hunt for AF447, scientists from Metron Inc, a Virginia-based consulting company, applied Bayesian analysis to calculate the wreckage's most likely location.  They estimated the distance the plane traveled from its last known position by looking at nine other accidents involving loss of control. Thirty-three recovered bodies were reverse-tracked to the moment of impact by assessing winds and currents. And unsuccessful underwater sonar searches also featured in the math, building in the chance that the plane's locator beacons weren't actually emitting a signal.
The wreckage was eventually discovered near the centre of Metron's highest-probability zone.
A counter-intuitive probability puzzle called the Monty Hall problem is still taught today to demonstrate Bayes' rule in action. It's named after the host of the 1960s US television game show, Let's Make A Deal.
The contestant is given the choice of three doors. Behind one door is a car. Behind the other two, goats. The contestant chooses door No 1. Then the host, who is aware of where the car is, opens No 2 to reveal a goat. He offers the contestant the chance to switch from No 1 to No 3. Should he change his mind?
Door No 1 always had a 1-in-3 chance of success. A Bayesian approach would conclude that by eliminating door No 2 - new information - door No 3 now carries a 2-in-3 chance of success. So the contestant should switch to door No 3.
"The very first time I heard it, I said: 'you're joking,"' said Prof Mengersen. "But when you do the calculations, you change your mind."
BLOOMBERG

Australia says stepping up hunt for MH370, confident of search area

Australia says stepping up hunt for MH370, confident of search area

[SYDNEY] Australia will step up search efforts in an area they believe holds the best hope of finding a missing Malaysia Airlines jet, whose disappearance last year sparked one of the greatest mysteries in aviation history, officials said on Thursday.
An Australian-led underwater search, the most expensive ever conducted, has so far found no trace of Malaysia Airlines Flight MH370, which went missing with 239 passengers and crew during a flight from Kuala Lumpur to Beijing in March 2014.
The number of vessels searching for the jet would be doubled to four, Australian Deputy Prime Minister Warren Truss said. One of the vessels would be provided by China.
The search has thus far focused on a 120,000 square km (46,330 square miles) band of sea floor in the remote southern Indian Ocean, where the plane is believed to have gone down.
Truss, flanked by officials from the Australian Transport Safety Bureau (ATSB) and Department of Defence, identified an area at the southern tip of that search band that is now believed to be the likeliest resting place of the wreckage.
The area, described by Truss as a "purple patch", had been chosen based on an analysis of the flight data, path and information gleaned from global satellite networks. "We have a high level of confidence that we are searching in the right area," Assistant Minister for Defence Darren Chester told a media conference in Canberra.
A piece of the plane found washed up on the French island of Reunion in July provided the first direct evidence that the plane had crashed into the sea. No further trace has been found.
Experts involved in past deep-water searches have said the hunt could easily miss the plane because Dutch company Fugro NV was using inappropriate technology and inexperienced personnel for the highly specialized task.
Fugro did not respond to requests for comment when that criticism was made.
US firm Williamson & Associates said images of the southern Indian Ocean floor released by the ATSB in October bore a striking similarity to the underwater debris field Air France Flight 447 left on the Atlantic Ocean floor when it crashed in 2009, killing all 228 passengers and crew.
More than 70,000 sq km have already been checked. The search of the entire band was expected to be completed by June 2016, Truss said.
REUTER
S

Helsinki to make cars superfluous by 2050

Helsinki to make cars superfluous by 2050

[HELSINKI] For years, this port city on the edge of the Baltic has been considered one of the greenest in Europe. Now Helsinki wants to go a step further and make cars unnecessary by 2050.
Helsinkians take great pride in their relatively small, maritime capital with a population of just over 600,000. But the city is anticipating a dramatic population boom over the next few years and needs to be able to comfortably accommodate its new arrivals.
Parks and clean air are a source of civic pride in this city where green areas already make up 47 per cent of space, so urban planners are devising a cityscape that also features fewer cars and thus cleaner air through lower carbon emissions.
While cars will not be banned, the city will do what it can to discourage people from using them, introducing better public transport, walkable green neighbourhoods brimming with services, and higher costs for parking.
City dwellers will be able to ditch their wheels as shops, schools and services will be grouped together within walking distance of their apartments.
And those who need to travel further to work will be able to hop on the city's swift network of metros, trains and tramways.
The head of Helsinki's Strategic Urban Planning Division, Rikhard Manninen, and his team are calling their new concept "boulevardisation", under which busy inner-city motorways are transformed into green residential boulevards.
"We will keep the green spaces by channelling most new construction projects into areas where highways now stand," Mr Manninen told AFP. Reducing the number of cars, and replacing them with public transport, will go a long way toward improving air quality.
The new plan will also help the city cope with an anticipated population boom of 40 per cent, or a quarter of a million residents, by 2050.
Helsinki aims to be carbon neutral by 2050, which means the city cannot discharge any more carbon into the atmosphere than its vast surrounding forests are able to absorb.
"Helsinki has already managed to cut down its emissions significantly... but in order to become carbon neutral by 2050 we need to gear up," said Alpo Tani, one of Helsinki's urban planners.
A key part of the solution is to address traffic, which accounts for around 20 per cent of Helsinki's emissions.
The city estimates that without its plan, traffic emissions would be up to 30 percent higher by 2050.
Not everyone in Helsinki is thrilled to see car use discouraged. But the city centre sits on a small peninsula jutting out into the Baltic Sea, and while it makes for a pretty backdrop, it also slows traffic and stymies growth.
"It's a very bad idea (to cut down driving). I don't have anything against public transport but nothing can beat having my own car," Johan, 50, told AFP sitting in his car, explaining that it takes him only 20 minutes to drive home to Helsinki's adjacent suburb of Espoo where he moved in search of more space.
With all of its existing green areas, seascapes and roads, Helsinki is running out of space, planners argue. But the Helsinki Chamber of Commerce has called the new plan "oversized" and "unrealistic".
"The goal to channel all traffic growth in means other than cars is unrealistic while the city is expanding," said the chair of the chamber's traffic committee, Heikki Kovanen.
While some car owners moan, others welcome better public transport such as the extension of Helsinki's metro westwards to Espoo, due to open in 2016.
"The plan seems good and practical. Public transport can carry more people than individual cars," said Mr Matti, a pensioner from Espoo out walking in Helsinki with his brother Mikko, who advocated even tougher traffic restrictions.
"We should adopt road tolls so that everyone doesn't pack into this small peninsula with their cars," he insisted.
Residents of Helsinki have for many years clung to the idea of keeping the city centre low and green.
So it comes as no surprise that many people grow anxious at the mention of new office towers or tall apartment blocks, and plans to reduce green areas.
Officials have promised not to take things too far.
The city's cherished Central Park - a whopping three times the size of its New York namesake - and other green areas will be reduced only slightly to make space for new housing, leaving 40 per cent of the city as green areas.
And, Mr Manninen vowed, "building upward will be permitted in some places, but not in the centre."
The foundations for Helsinki's first skyscrapers are currently being laid in a former harbour dubbed Kalasatama (Fish Harbour), which is to house some 20,000 people and create 8,000 jobs by 2030.
Kalasatama intends to showcase Helsinki's beautiful seashores with boardwalks and recreational areas.
The city council is set to approve the draft plan in 2016.
AFP

SMRT partners A*Star to develop solutions to improve transport reliability

SMRT partners A*Star to develop solutions to improve transport reliability

By
angelat@sph.com.sg  
SMRT Corporation said on Thursday that it will partner the Agency for Science, Technology and Research (A*Star) to develop technologies to improve Singapore's transport network reliability and performance.
The five-year collaboration agreement will bring together the rail operations and engineering capabilities of SMRT, the strengths in sensor networks and data analytics of I2R, as well as expertise in computational modelling and simulation of IHPC. I2R (Institute for Infocomm Research) and IHPC (Institute of High Performance Computing) are research institutes under A*Star.
Projects that the teams will be exploring include installing sensors to monitor the health condition of station equipment that could help SMRT engineers conduct preventive maintenance, extending the mean time between failures and improve safety.
I2R will work with SMRT engineers to develop an automated condition monitoring system for infrastructure and traction power systems to improve the overall rail network's robustness.
IHPC will develop a non-intrusive condition monitoring system for railway cables for the North-South and East-West Lines (NSEWL), complementing the existing voltage monitoring devices that are progressively being introduced to provide resilience against power faults. This project will allow SMRT engineers at the NSEWL Operations Control Centre to receive instant notifications when electrical discharges associated with damaged cables are detected.
"This initiative is part of SMRT's ongoing effort to invest in research and development, working with established partners such as A*STAR to leverage on technology as part of our concerted effort to improve rail reliability and service quality,'' SMRT president and group CEO, Desmond Kuek, said in a release. "Through this collaboration, we hope to drive the application of technology in operational performance, work efficiency and business growth."
Lee Ling Wee, managing director of SMRT Trains, elaborated that the parties aim to co-develop solutions that would provide additional early warning systems that would allow the rectification of issues before they happen. Rail engineers are also expected to benefit from the advanced modelling and statistical analytics that A*Star will provide.
SMRT will also establish a joint lab with IHPC with a focus on research and development to improve the operational efficiency and reliability of bus and taxi services. The project aims to help SMRT "better anticipate and manage potential issues such as bunching or traffic congestion, and ensure stricter adherence to bus schedules''.

US dollar firms as Yellen signals path to rate hike

US dollar firms as Yellen signals path to rate hike

[New York] The US dollar firmed on Wednesday, bolstered by Federal Reserve Chair Janet Yellen's signal that the US economy looks strong enough for an interest rate hike this month.
The euro, meanwhile, was under pressure as traders expect the European Central Bank to announce additional stimulus to fight low inflation and tepid growth in the eurozone after a policy meeting on Thursday.
Ms Yellen's remarks that the US economy will continue to grow steadily and that risks had diminished highlighted the diverging policies of the two central banks.
US labour data also was supportive of a rate hike at the Federal Open Market Committee's December 15-16 policy meeting. Payrolls firm ADP reported US companies added 217,000 jobs in November, the strongest pace since June.
"The dollar soared to fresh highs as US jobs data and the tone of remarks from the Fed chair suggested full steam ahead for a US rate hike in two weeks," said Joe Manimbo, senior market analyst at Western Union Business Solutions.
"Fed Chair Janet Yellen said that global risks had abated since the summer and that she was 'looking forward' to raising interest rates since it would signal confidence in the economy," he said.
The euro slipped to US$1.0553 before regaining some ground, trading at US$1.0619 around 2200 GMT. The dollar rose 0.8 per cent to 123.81 yen.
Meanwhile, traders looked ahead to the ECB's decision.
"The ECB has committed itself to easing on Thursday, and this is an opportunity for the central bank to surprise markets by being aggressive," said Moody's Analytics.
AFP

ECB to drive policy further into uncharted territory

ECB to drive policy further into uncharted territory

[FRANKFURT] Fighting stubbornly low inflation, the European Central Bank is expected to ease policy further on Thursday, delivering a cocktail of measures that could include a deposit rate cut and changes to its asset-buying programme.
Promising to do what it must to boost inflation "as quickly as possible", the bank has all but committed to action, leaving investors guessing only what measures it would pick from an exceptionally long and sometimes contentious list.
Proposals under discussion range from mainstream moves like extending quantitative easing, to more extreme ideas, like a two-tier deposit rate that would punish banks parking too much cash with the central bank instead of lending the money to generate growth and thus inflation.
But most of those proposals will run into some opposition on the consensus-seeking ECB Governing Council, making it more difficult for President Mario Draghi to extend his track record of promising big and delivering even more.
Critics of easing, led by the Governing Council's two German members, say that Europe's recovery is gaining strength and the biggest reason inflation is hovering near zero is the fall in oil prices, which is a boost for growth as lower energy costs leave households with more to spend.
Indeed, business activity in the euro zone picked up at its fastest pace since mid-2011 last month, third quarter economic growth was running at a respectable 1.6 per cent and lending is increasing at the quickest rate in four years.
The US Federal Reserve's expected interest rate hike also complicates the decision. While a December move has been widely telegraphed, an unexpectedly weak manufacturing survey this week raised fresh doubts about the Fed's rate path.
But top ECB officials, including chief economist Peter Praet, have focused their efforts on inflation, warning that missing the target again risked damaging the ECB's credibility and making monetary policy less effective.
Even if oil prices account for part of the problem, core figures, which strip out energy prices, are running at half of the target, an indication that once the one-off effect of the crude price fall passes through, inflation will not rebound, they argue.
Indeed, analysts polled by Reuters expect the ECB to cut its 2017 inflation forecasts to 1.6 per cent from 1.7 per cent, below its target of close to but below 2 per cent, indicating that the inflation could be below target for over 4 years.
The ECB will announce its interest rate decision at 1245 GMT and Mr Draghi will unveil new economic forecasts along with measures not involving rates at a 1330 GMT news conference.
SAVE SOME AMMUNITION
While the ECB does not target the exchange rate, it may need to act to preserve the euro's recent weakness against the dollar and the pound after recent falls lifted long term inflation expectations to their best level since mid-year. "The main reason why the ECB sees a need to signal more easing, even though it is not even halfway through its ongoing quantitative easing programme, is that it wishes to prevent euro appreciation," SEB said in a note. "A weak currency has been one important driving force behind the recovery, and with a hesitant Bank of England postponing its rate hikes ever further into the future, a euro rebound is a threat," it added.
Learning from its past mistake of providing overly specific forward guidance, the bank could extend its asset purchases indefinitely, only dropping the end date without providing a new one, and could cut the deposit rate, again without providing an estimate for where the bottom is for rates.
German banks would be the most affected by a cut in the deposit rate as they have nearly 160 billion euros of excess cash parked at ECB or the Bundesbank, according to Barclays Research estimates.
The French and Dutch banking sectors each sit on more than 100 billion euros of excess cash, compared to less than 20 billion euros each for their peers in Ireland, Spain and Italy, the estimates show.
The improved economic outlook means the ECB can also afford to save some firepower for later, especially after promising data, including lending growth at a four year high.
"In our view, the ECB should keep some of its tricks up its sleeves and stick to a small 10 basis point cut in December, and keep (schemes such as a two-tier deposit rate) in case of a further deterioration of the inflation outlook," Credit Agricole said. "If the ECB wants to exceed market expectations, it could simply swing to a clear QE-infinity, and drop any time reference," it added.
REUTERS

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