Author: Ben Debski

Snapchat rebrands as ‘Snap’

Posted on by Ben Debski

Snapchat has rebranded itself as ‘Snap’, as the company looks to reposition itself as a camera maker and diversify its business beyond its flagship app. Its first piece of hardware is a pair of camera-equipped sunglasses for capturing and uploading video.

In an interview with The Wall Street Journal, Evan Spiegel, CEO and founder of Snap, unveiled the company’s first physical product. Named ‘Spectacles’, the brightly coloured sunglasses are equipped with a pair of built-in cameras that will post 10-second bursts of video directly to Snapchat with the push of a button. The cameras use a 115-degree lens, wider than the average smartphone camera, and capture video at a perspective more similar to human sight. The glasses will retail at $129.99 and will initially launch with only limited distribution. Spiegel described Spectacles as a “toy” a person might pull out for a party or concert.

Spectacles share a number of things in common with Google Glass, but address many of the criticisms the latter received

Spectacles share a number of things in common with Google Glass, but address many of the criticisms the latter received. At the time of their launch, many were worried a head-mounted camera that didn’t indicate when it was recording posed a risk of invasion of privacy. Google Glass was also prohibitively expensive, at $1,500 a pair. Spectacles are far less subtle than Google’s head-mounted computer, and light up while recording. Additionally, Snapchat deletes videos after a period of time, making privacy less of a concern.

The company rebranding was announced alongside Spectacles to reflect that Snap no longer just produces the Snapchat app. On its newly launched website, Snap states it is a camera company, suggesting Spectacles will be the first of several new products.

Snapchat continues to be one of the most successful social media networks, boasting 150 million daily users, almost 15 million more than rival Twitter. The network’s appeal is a carefree social media experience that functions more like a conversation than a record of history.

Spectacles do not yet have a release date, but will be available in the coming months.

 

Hackers steal data from 500 million Yahoo users

Posted on by Ben Debski

Yahoo has disclosed that hackers have gained access to the account information of approximately 500 million users, in what is the largest publicly disclosed data breach in history.

In a statement released on its Tumblr account, Yahoo has confirmed that a significant volume of account information was stolen from its servers in 2014. Information potentially compromised in the breach includes names, email addresses, telephone numbers, dates of birth, hashed passwords, and security questions and answers. However, Yahoo also stated that no bank account information or payment card data was affected. The company is recommending users reset any passwords that haven’t been changed since 2014, across Yahoo services and any external accounts that used the same or similar passwords.

As part of its statement, Yahoo said it believes a ‘state-sponsored actor’ carried out the attack, but did not offer any further details or specificity. It also said it is closely working with law enforcement agencies on the matter.

As part of its statement, Yahoo said it believes a ‘state-sponsored actor’ carried out the attack

The company appears to have responded slowly to the breach. As reported by Motherboard in August, a hacker using the pseudonym ‘Peace’ advertised the sale of 200m Yahoo user accounts on the dark web. At the time, Yahoo said it was investigating the authenticity of the claim.

The breach is the biggest in history, impacting significantly more people than the 360m Myspace users hit in the previous record-setting breach earlier this year.

The hack also comes at an extremely sensitive time for Yahoo. In July, Verizon agreed to purchase Yahoo for $4.8bn, with the deal set to close by early 2017. The fomrer titan of the internet struggled to keep up with the transformation of the online advertising business and was posting spiralling losses. In an interview with the BBC, Verizon confirmed it had only received news of the breach ‘within the last two days’ and had access to only limited information.

To read more on the tragic demise of Yahoo, check out The New Economy‘s special report on the company, in print and online.

Chan Zuckerberg Initiative pledges $3bn to fight diseases

Posted on by Ben Debski

On September 21, the Chan Zuckerberg Initiative announced the launch of its new $3bn research technology programme, which aims to cure all global diseases by the end of the century.

Speaking at a launch event at the University of California, San Francisco, Dr Priscilla Chan drew on her experience as a paediatrician, explaining how “the limit of the science behind medicine leads to suffering”. Through investing in medical research and encouraging collaboration between expert scientists and engineers, the Initiative hopes to eliminate such suffering “within our children’s lifetime”.

The Chan Zuckerberg Initiative will fund a $600m San Francisco-based research centre, called the Biohub

As part of the multi billion-dollar project, the Chan Zuckerberg Initiative will fund a $600m San Francisco-based research centre, called the Biohub. Here, a team of researchers and scientists from UCSF, Berkley and Stanford will work together closely to find new ways to fight diseases.

At the Biohub, research will be focused in part on some of the world’s most deadly diseases. “Today, most people die from four types of diseases”, Zuckerberg said in a Facebook post, listing heart disease, cancer, infectious diseases and neurological diseases as the world’s biggest killers.

“There are common strategies for addressing those diseases, and common tools and technology we can develop to better understand and fight them more effectively.”

One of the tools that Chan Zuckerberg Science hopes to develop is a pioneering ‘cell atlas’ technology, which would map the type, location and molecular properties of the trillions of cells in the human body. Through extensively mapping cell types and mutations, a better understanding of cell behaviour could lead to improved treatment for life-threatening diseases such as cancer.

Artificial intelligence may also play an essential role in the Initiative’s ‘transformative technology’ project. The Facebook founder suggested that medical AI could be used to better interpret brain imaging, fuelling advances in treating neurological diseases.

In addition to funding these new tech tools, Chan Zuckerberg Science will also establish an Infectious Disease Initiative at the Biohub, which will explore new ways to develop diagnostic tests and vaccines for such deadly diseases as HIV, and the Zika and Ebola viruses.

“In bringing together three world-class research organisations in UC Berkeley, UCSF and Stanford, the Biohub represents the kind of cross-institutional collaborative environment that will be necessary for addressing the most pressing life science challenges of our time”, said UC Berkeley Chancellor Nicholas Dirks. “I have no doubt that the Biohub will be the catalyst for major research breakthroughs.”

The Chan Zuckerberg Initiative’s pledge is set to fuel a growing research technology market. The project launch comes just days after industry giant Microsoft announced that it would ‘cure’ cancer within the next ten years, by using computer science to reprogramme diseased cells. As funding pours in for tech-centred scientific research, the next big medical breakthrough may just come courtesy of modern software.

Chinese merger set to create world’s second-largest steelmaker

Posted on by Ben Debski

On September 20, two Chinese state-owned steel groups announced their plans to merge, in a deal that will create the world’s second-largest steelmaker.

Shanghai-based Baosteel, China’s biggest steel producer, will acquire its smaller rival Wuhan Iron & Steel, establishing a global industry giant.

The deal comes as part of a government drive to improve efficiency and cut overcapacity in the steel industry. Over the past year, a global slump in demand for steel has led to massive overproduction, causing something of a crisis in the industry. Steelmakers worldwide have seen their profits slashed, with Baosteel reporting a net profit of just $150m in 2015, and Wuhan operating at a $1.1bn loss.

Last year, China produced an excessive 803.8 million tonnes of steel

While China is looking to cap overproduction, the merger may conversely lead to an increased steel output. Together, the two companies will have a crude steel production capacity of 60 million tonnes per year, and a pooling of resources and manpower may even see an increase on this anticipated output.

During September’s G20 summit, China came under increasing pressure from world leaders to address its excess steel capacity, as its cheap exports currently account for over half of all global production. The nation had previously pledged to cut its steel production by 100-150 million tonnes by 2020, in an attempt to slash its 300 million tonne surplus. However, the newly-approved Baosteel-Wuhan merger has once more raised doubts over China’s commitment to cutting its output.

While China’s crude steel capacity did indeed fall last year for the first time in three decades, its output was only down by a meagre 2.3 percent, meaning that the nation still produced an excessive 803.8 million tonnes of steel.

As global steel demand lingers at less than 700 million tonnes for this year, cutting output must be an imperative for China, while steelmaker mega-mergers may instead only fuel the nation’s overproduction problem.

Port of Melbourne leased to Lonsdale consortium for $7.3bn

Posted on by Ben Debski

The Port of Melbourne, Australia’s biggest container and cargo port, has been leased to the Lonsdale Consortium for $7.3bn, as part of the Victorian Government’s ongoing privatisation programme. The group, which includes Chinese sovereign wealth fund CIC Capital, narrowly beat an IMF-backed consortium to acquire the 50-year lease.

“This is a $7.3bn vote of confidence in the Victorian economy”, the Premier of Victoria, Daniel Andrews, said of the deal.

In a media release confirming the sale, the Victorian Government announced that it would be using the proceeds of the lease to strengthen regional infrastructure and launch new transport initiatives. Funds from the sale will largely go to the Victorian Transport Fund, which seeks to establish the long-awaited Melbourne metro system, as well as improve the state’s 50 worst railway level crossings.

“Through this lease, we are supporting our state’s vibrant regional communities, putting infrastructure and agriculture back at the heart of Victoria’s economic development”, said Luke Donnellan, Victoria’s Minister for Ports. The planned infrastructure projects promise to create thousands of jobs in the region, with $151m from the lease earmarked for the Regional Jobs Fund.

Funds from the sale will largely go to the Victorian Transport Fund, which seeks to establish the long-awaited Melbourne metro system

The port, which attracts over 3,000 commercial ships each year, far exceeded expectations at auction, with the Victorian Government initially anticipating it to sell for around $5.3bn.

In an ongoing effort to cut debts and raise funding for new infrastructure projects, the federal government has been transferring public-owned assets to the private sector, with sales of ports accounting for a significant portion of privatisation deals. In 2013, the New South Wales Government generated $3.8bn from the sale of Port Botany and Port Kemblea, while the Port of Newcastle was leased to China Merchants Group and Australia’s Hastings Funds Management for $1.3bn in 2014.

The Port of Melbourne deal serves to further confirm China’s increasing interest in Australian infrastructure. In 2015, Shandong-based Landbridge Group secured a 99-year lease of Darwin Port, while an attempted Chinese takeover of the Ausgrid energy network was blocked by the Australian Government last month.

3D printing start-up secures $81m in new funding

Posted on by Ben Debski

Carbon, a 3D printing start-up, has secured $81m in funding from manufacturing giants BMW Group, General Electric, Nikon and JSR Group. The Silicon Valley start-up, which specialises in producing car parts and medical equipment, had previously raised $141m from its existing investors, bringing its total funding to an impressive $222m.

Carbon, whose customers include BMW, Delphi and Ford, has been pushing the boundaries of 3D printing since its formation in 2013. The San Francisco firm claims its flagship M1 machines can produce materials up to 100 times faster than other industrial 3D printers currently available on the market. In addition to focusing on manufacturing speed, Carbon also aims to produce lightweight materials through the use of lattice structures throughout its 3D printed parts.

Carbon claims its flagship M1 machines can produce materials up to 100 times faster than other industrial 3D printers

“3D printing is a translation of the digital to a physical reality and when done right, offers true design freedom across every category”, said Carbon CEO and Co-Founder, Dr Joseph DeSimone.

“At launch we set forth a bold vision to fundamentally change how the world makes ‘things’. We have been working to deliver on that vision for the US market, and are ready to step onto the global stage.”

In securing the support of such big-name strategic investors, Carbon seems set to bring 3D printing technology to the mass production market. Using its multimillion dollar funding, the start-up will be amping up production of its M1 machines, aiming to have 100 operating in the market by the end of the year, and a further 500 available by 2017.

While manufacturers have previously limited their use of 3D printing to creating prototypes, a recent spate of investments in the 3D printing market demonstrates an increasing desire to further integrate the technology into all stages of production.

General Electric has been incorporating 3D printing into its digital technology mission for some years now, investing approximately $1.5bn in the pioneering technique since 2010. Last week, the conglomerate announced it was furthering its ambitions in the sector, acquiring two major European 3D printing firms for a total of $1.4bn.

With high-profile manufacturers beginning to follow GE’s lead in investing in 3D printing, the revolutionary technology may soon become an integral part of large-scale mainstream production.

Bayer completes record-breaking $66bn takeover of Monsanto

Posted on by Ben Debski

 

On September 14, German chemicals giant Bayer confirmed it had acquired the GM seed producer Monsanto, in the biggest all-cash deal in corporate history. The $66bn merger will create the world’s largest agriculture company, controlling 25 percent of the global supply of seeds and pesticides.

“We are pleased to announce the combination of our two great organisations”, said Werner Baumann, CEO of Bayer AG. “This represents a major step forward for our Crop Science business and reinforces Bayer’s leadership position as a global innovation driven Life Science company.”

While Bayer is best known as a pharmaceutical manufacturer, selling products such as Aspirin and Alka-Seltzer, the move will see the German giant shift its focus to seed production. Food security will be top of the agenda for the newly created company, as it looks for environmentally sustainable ways to feed a growing global population.

Fewer than a dozen corporations control nearly 70 percent of the global seed industry

“We are entering a new era in agriculture – one with significant challenges that demand new, sustainable solutions and technologies to enable growers to produce more with less”, said Hugh Grant, Chairman and CEO of Monsanto.

Monsanto has long been working on securing higher yields for farmers though the production of genetically modified seeds and its controversial herbicide, Roundup. While Monsanto’s extensive work on GM crops has often come under fire from campaigners and environmentalists, this latest deal with chemicals specialist Bayer suggests digital agriculture remains at the forefront of the seed producer’s ambitions.

The record-breaking acquisition is the latest in a spate of mergers and acquisitions in the global agriculture industry. As falling crop prices have seen reduced demand for seeds and pesticides, suppliers have increasingly looked to mergers to combat their stagnant profit margins. Industry giants Dupont and Dow Chemical joined forces at the end of 2015, while Swiss agribusiness Syngenta was bought last month by China’s state-owned ChemChina for a record-breaking $42bn.

In the wake of such high-profile acquisitions, the Bayer-Monsanto deal will further exacerbate anxieties over reduced competition in what is a rapidly-shrinking market. Currently, fewer than a dozen corporations control nearly 70 percent of the global seed industry, giving a select few companies unprecedented influence over worldwide food supply.

Given the scale of the deal, however, the merger is likely to come under heavy scrutiny from both US and European watchdogs. In the event the regulatory hurdles prove too difficult to overcome, Bayer has agreed to pay Monsanto a $2bn break fee.

Japan’s Takeda sets aside $15bn for US pharmaceutical acquisitions

Posted on by Ben Debski

Takeda Pharmaceutical Co, Japan’s leading drugmaker, is preparing to spend up to $15bn on acquisitions of US-based pharmaceutical companies, the Financial Times has reported.

Citing unnamed sources, the FT revealed Takeda has a particular interest in acquiring cancer-drug companies, as well as firms developing medicine for gastrointestinal conditions and diseases affecting the central nervous system.

Takeda’s latest efforts to break into the lucrative US drug market may be significantly strengthened by its recent multimillion dollar deal with the US Government. On September 2, the Japanese drugmaker announced it had secured up to $312m in US Government funding in order to develop a potential Zika vaccine.

Under the terms of the deal, the government’s health emergency department, BARDA, will pay the pharmaceutical department $19.8m to cover the research and development of the vaccine’s initial trials, offering further investment during later stages. With the government’s financial backing, Takeda will use its pioneering research into Dengue Fever, a related virus, to help create the world’s first vaccine for the rapidly spreading Zika pathogen.

“Working with BARDA, Takeda is deploying its world-class expertise and capabilities in vaccine development for emerging infectious diseases, and our outstanding team and manufacturing facilities in Hikari, Japan”, said the President of Takeda’s Global Vaccine Business Unit, Dr Rajeev Venkayya, at the time of the deal.

While this partnership with the US Government may be Takeda’s most significant foreign collaboration to date, it is not the company’s first serious investment from a US-based firm. In May, the Japanese pharmaceuticals group received a $38m grant from the Bill & Melinda Gates Foundation to help eradicate polio in the developing world. This investment enabled Takeda to commence the research, license and supply of 50 million doses of a poliovirus vaccine in over 70 LEDC countries.

These high-profile collaborations have certainly given the drugmaker a foothold in the US healthcare market, while its new acquisition plans show Takeda’s ambitions in the global drugs market are not slowing down.

World’s largest tidal energy farm unveiled in Scotland

Posted on by Ben Debski

The first turbine for the MeyGen tidal stream project has been unveiled in the Scottish Highlands by First Minister Nicola Sturgeon, as the world’s largest tidal power generation project begins installation.

As reported by The Guardian, the project’s first turbine was displayed just outside Inverness in Scotland before being transported to its installation site off the northern coast of Scotland, between Caithness and Orkney. The 15 metre tall turbine is the first of four to be installed as part of phase one, with each turbine having a capacity to generate of 1.5 MW of power when fully functional. The project has been developed by Edinburgh-based Atlantis Resources and received £23m in funding from the Scottish Government.

“I am incredibly proud of Scotland’s role in leading the way in tackling climate change and investment in marine renewables is a hugely important part of this”, said Sturgeon at the unveiling. “MeyGen is set to invigorate the marine renewables industry in Scotland and provide vital jobs for a skilled workforce, retaining valuable offshore expertise here in Scotland that would otherwise be lost overseas.”

The project has been developed by Edinburgh-based Atlantis Resources and received £23m in funding from the Scottish Government

These first four turbines are only the first step of MeyGen’s ambitious plan. Atlantis Resources hopes the site’s scale will eventually grow to 269 turbines operating at a total capacity of 398 MW, enough electricity to power 175,000 homes.

Tidal energy uses the force of tides to drive underwater turbines. They are less common than other renewables due to their comparatively high cost and scarcity of suitable locations for construction. They do offer other benefits; power generation is much more reliable than wind and solar with underwater turbines being less obvious eyesores.

It’s part of something of a tidal revolution in the UK, with a number of firms moving to take advantage of the region’s suitability for the systems. In April, Perpetuus Tidal Energy Centre received approval to construct up to 60 turbine systems off the Isle of Wright. Nova Innovation switched on turbines in Shetland last month.

It’s in stark contrast to the level of enthusiasm for tidal power in the recent past. Scottish firm Pelamis collapsed into administration 2014 with Aquamarine following just a year later. Both cited lack of funding for their collapse.

IEA says global oil demand is weakening

Posted on by Ben Debski

According to the International Energy Agency’s latest report, the growth of global demand for oil has slowed faster than expected. The agency’s September Oil Market Report slashed its forecasts for global oil demand in 2016 and 2017 – largely due to changing conditions in the global economy.

The authors of the IEA report noted: “Global oil demand growth is slowing at a faster pace than initially predicted. For 2016, a gain of 1.3 million barrels a day is expected.” This figure is 0.1 million barrels per day lower than in the agency’s previous forecasts. Demand is expected to ease further downward, “to 1.2 million barrels per day in 2017” as “underlying macroeconomic conditions remain uncertain”.

Despite this falling demand, oil supply is not expected to fall

As the IEA noted, “recent pillars of demand growth China and India are wobbling”, while in general “economic worries in developing countries haven’t helped either”. However, slowing demand is not just the result of trouble in emerging markets. The report’s authors also expressed concerns over the strength of the US economy, noting that “momentum in the US has slowed dramatically”, while at the same time “unexpected gains in Europe have vanished”.

Yet despite this falling demand, supply is not expected to fall. It is anticipated that “supply will continue to outpace demand at least through the first half of next year”, with global inventories continuing to grow. Production is continuing to expand despite sustained soft prices and resulting investment cuts, albeit it a slower pace than in 2015. “As for the markets return to balance”, according to the IEA, “it looks like we may have to wait a while longer.”

With global demand weakening alongside global supply increasing, participants of September’s OPEC meeting in Algiers will be under increased pressure to reach a consensus on capping or cutting output– although the likelihood of any meaningful agreement still appears slim.

Audi joins forces with Chinese tech giants

Posted on by Ben Debski

On September 11, Volkswagen-owned luxury brand Audi announced it had signed agreements with three of China’s biggest tech companies, in order to further strengthen its “digital footprint” in the world’s largest car market. During its annual summit in Shanghai, Audi signed separate memorandums of understanding with Baidu, Alibaba and Tencent, confirming closer collaboration with the Chinese software specialists.

“China has become an important lead market for digital technologies. Baidu, Alibaba and Tencent are strong innovators. We are determined to work with them on features for the connected car of the future”, said Joachim Wedler, President of Audi China.

The agreements will allow Audi to expand on its previous collaborative ventures with China’s leading technology companies. The German carmaker already works with Alibaba to integrate real-time traffic data technology into its vehicles and produce high-resolution 3D maps.

While a closer partnership with Alibaba will build on these pre-existing projects, Audi’s newly formed working relationships with Baidu and Tencent will focus on new ways to incorporate smartphone apps into its premium cars.

Audi signed separate memorandums of understanding with Baidu, Alibaba and Tencent

Starting in 2017, Baidu’s in-car software app CarLife will be introduced into Audi’s Chinese vehicles, allowing drivers to access Baidu’s popular apps from a touchscreen located on their car’s dashboard.

Meanwhile, Audi will be working with Tencent to integrate the latter’s phenomenally popular messaging app WeChat into the former’s vehicles. Boasting over one billion registered accounts and 806 million monthly active users, the instant messaging service is Asia’s most popular communications app. As WeChat expands its services and becomes near essential to daily life in China, users are increasingly demanding hands-free access to the platform, even while driving.

By incorporating digital technologies into its latest models, Audi seeks to reaffirm its dominant position in China’s premium car market. While the German carmaker is the largest luxury car brand in China, selling approximately 492, 000 vehicles last year, its major rivals, BMW and Mercedes have recently been making gains in the market. According to the Financial Times, from January to July of this year, sales of Mercedes and BMW climbed 32 percent and 8.5 percent respectively, while Audi sales only saw an increase of 6.5 percent.

As rival luxury brands begin to make headway in China, investment in key future technologies could prove vital to Audi. By successfully integrating popular apps and pioneering Wi-Fi connected technology in its cars, the German giant may just continue to outshine its competitors in Asia.

Tesla revamps Autopilot

Posted on by Ben Debski

Following a tirade of criticism in May when its self-driving car caused its first fatality,Tesla has revealed a major overhaul to its autopilot technology. As detailed in a press release published on September 11, in addition to various small modifications to the software, Autopilot 8.0 now has superior signal processing capabilities.

The new system uses the pre-existing radar on board to integrate advanced signal processing and “create a picture of the world”. The radar, which has featured in all Tesla vehicles since October 2014, was initially intended to be supplementary to the principal camera and image processing system.

Tesla CEO Elon Musk said the latest improvements will make vehicles with Autopilot 8.0 “three times safer” than those without

There were numerous challenges to overcome in order to use the radar as Autopilot’s ‘primary control sensor’, particularly in regards to preventing false alarms. For example, metal surfaces appear amplified through the radar, posing the risk of emergency braking if, say, a harmless tin can appears on the road. To resolve this problem, Tesla has implemented a point cloud that is more detailed and can access far more radar objects.

The next step involved the ability to assemble radar snapshots  to create a “3D ‘picture’ of the world” and assess whether an object is stationary or moving. The final step will use fleet learning to compile data on any given road and radar object, increasing accuracy over time as more people use the system.

Moreover, in another bid to squash concerns, Autopilot 8.0 has added restrictions to prevent a false sense of security for drivers. As such, the new system will not allow the use of ‘hands off’ technology when audible warnings to take control of the vehicle are ignored.

During a press call, Tesla CEO Elon Musk said the latest improvements will make vehicles with Autopilot 8.0 “three times safer” than those without. “I think it will make the Model S and Model X by far the safest cars on the road. I don’t think there would be a car that is even within a multiple of the S and the X”, he added.

The changes will be reviewed by the National Highway Traffic Safety Administration, which is currently investigating Autopilot as a result of the fatality earlier this year.