Finanzas

Aunque tuvieron un gasto muy elevado, la mayor parte de los directivos y algunos consejeros quizá eludan la prisión tras reintegrar lo gastado

La compañía deja atrás las perdidas de 641,2 millones de euros que registró el ejercicio anterior

“WE ALMOST went out of business several times.” Usually founders don’t talk about their company’s near-death experiences. But Jen-Hsun Huang, the boss of Nvidia, has no reason to be coy. His firm, which develops microprocessors and related software, is on a winning streak. In the past quarter its revenues increased by 55%, reaching $2.2bn, and in the past 12 months its share price has almost quadrupled.

A big part of Nvidia’s success is because demand is growing quickly for its chips, called graphics processing units (GPUs), which turn personal computers into fast gaming devices. But the GPUs also have new destinations: notably data centres where artificial-intelligence (AI) programmes gobble up the vast quantities of computing power that they generate.

Soaring sales of these chips (see chart) are the clearest sign yet of a secular shift in information technology. The architecture of computing is fragmenting…Continue reading

Rejected suitor

JORGE PAULO LEMANN (pictured), a Brazilian investor, is ill-accustomed to failure. On February 17th Kraft Heinz, backed by Mr Lemann’s 3G Capital, said it had bid $143bn for Unilever, a maker of food and personal products. 3G has gobbled many a consumer firm, slashed costs, then bought an even bigger one. Even so, the Unilever bid was surprising in its audacity—the merger would have been the second-largest ever. As shocking, it collapsed two days later.

Kraft Heinz had hoped to continue talks in private, but news of its offer leaked out. Its management appeared to have badly misjudged the depth of Unilever’s attachment to its culture and its pursuit of long-term, “sustainable” growth. Unilever’s outright rejection meant that 3G and Warren Buffett, who was expected to help fund a deal, faced the prospect of going hostile against a revered firm. It was a rare stumble. But the episode doesn’t spell the end of its model. More deals are likely. And Kraft Heinz is already changing how Unilever and other rivals operate.

Times are hard for big consumer companies, once among the world’s…Continue reading

Atypical success

IT MIGHT seem a great time for indie cinema. The Academy Awards on February 26th will be something of a showcase for films not financed by a major studio. “Manchester by the Sea”, a contender for six Oscars, including best picture, was a darling of the Sundance Film Festival last year. Kenneth Lonergan’s masterpiece (one scene is pictured) about family and loss has earned $46m in cinemas in America and Canada, a spectacular return on its production costs of $8.5m. Amazon, which bought distribution rights, will benefit.

Movie buffs can find all manner of films online that are made more cheaply still. “The Break-In”, a horror film shot by Justin Doescher on his girlfriend’s iPhone for less than $20, has earned him more than $20,000, with more than half a million people having watched at least part of it on Amazon’s streaming-video platform.

For every success story there are thousands of indie films that go unwatched. The digital age has made it easier than ever to make a film, but also harder than ever to break through the clutter of entertainment options to an audience. Chris Moore, a…Continue reading

MIGHT Donald Trump’s promise to shake up America’s trade policy extend to its statistics? According to a report in the Wall Street Journal, discussions are afoot on changing the way trade figures are tallied. The Bureau of Economic Analysis, the country’s main statistical body, calls this “completely inaccurate”. But in trade as elsewhere, the new administration seems prone to using statistics as a drunk uses a lamppost—for support rather than illumination.

The proposal reportedly involves stripping out some of America’s exports from the gross numbers. America sold $1.5trn of goods abroad in 2016, but of that $0.2trn were re-exports that left the country much as they had arrived. This type of trade has been growing, reflecting America’s role as a hub for North American trade. As a share of its combined exports to Mexico and Canada, re-exports rose from 12% to 20% between 2002 and 2016. Truckers and shippers benefit from this kind of trade. But critics see it as “padding”, obscuring gloomier trends in “made in America” exports.

Stripping out re-exports makes no sense when thinking…Continue reading

Rite of passage

IF SEVERAL hundred million Indians do migrate from the countryside to cities between now and 2050, as the UN expects, it will be a fiendishly busy few decades for Vivek Aher, who runs a low-cost hostel, one of five, on the outskirts of Pune, a well-off city three hours’ drive from Mumbai. A fair few of the new arrivals will have their first experience of urban living bunking in one of the hostels’ 1,350 beds. Should recent experience be anything to go by, most of the new arrivals will test Mr Aher’s patience by tacking posters on his hostel’s walls, or endlessly complaining about the Wi-Fi.

India has two main drags on economic growth. One is the difficulty of finding a job, especially in the places people live. The other is a chronic shortage of cheap housing. Aarusha Homes, Mr Aher’s employer, started in 2007 to help people seize economic opportunities far from home. Its rooms are basic and cheap. They include up to six beds, a bathroom for every three or four residents, some common areas and little else. Rent ranges between 3,500 and 10,000 rupees ($52-$149) a month including food.

Most…Continue reading

WILLIAM ELLIOT GRIFFIS, an American educator who travelled to Japan in the 1870s, noted that in the previous two and a half centuries, “the main business of this nation was play”. He described toyshops filled as full as Christmas stockings and plenty of grown-ups “indulging in amusements which the men of the West lay aside with their pinafores”.

Griffis would have found it familiar walking today around Hakuhinkan Toy Park, one of the largest toy stores in Tokyo. Teens, office workers and grandparents are mostly to be seen perusing its 200,000-odd knick-knacks across five floors. Its director, Hiroyuki Itoh, says he wants the store to be a place where everyone can play. After work, suited salarymen come to spend ¥200 (under $2) for a five-minute whizz around a 36-metre slot-car racetrack. In another corner a gaggle of university students fiddle with displays of toys from the era of their childhoods.

Playthings aimed at the over-20s make up 27% of Japan’s domestic toy sales, according to figures from Euromonitor, a market-research firm. That grown-up portion of the market has been crucial for Japan’s three biggest players,…Continue reading

IS THE technology industry in La La Land? There are alarming signs. House prices in San Francisco have risen by 66% more than in New York over the past five years. Even at the height of the dotcom bubble in 2001, the gap was lower, at 58%. Shares of technology firms trade on their highest ratio to sales since the turn of the century. Four of the world’s most valuable firms are tech companies: Apple, Alphabet, Microsoft and Amazon. Snap, a tiddler with $400m of sales and $700m of cash losses in 2016, is expected to list shares on March 1st that will give it a valuation of over $20bn.

For companies and investors in any industry, it is hard to work out if you are living in a bubble. To help, Schumpeter has created three sanity tests for global tech firms. These examine their cashflow, whether investors differentiate between companies, and whether forecasts of their future earnings suffer from a fallacy of composition. The exercise suggests that tech valuations are frothy, but not bubbling.

The first test is cashflow, and the industry passes it with flying colours. In 2001 about half of all listed tech firms were unable to convert…Continue reading

EUROPE will never create a hub of tech firms and investors to rival Silicon Valley, many experts on entrepreneurship concur. Its markets are still fragmented along national lines, flows of capital into the region are limited and because of lingering, conservative attitudes to risk, few startups grow to rival American champions. “Europe is toxic”, argues Oussama Ammar, an outspoken founder of an incubator in Paris. “Life that should happen, does not happen”, he says.

But some digital life does flourish, spread among cities rather than fixing in one spot. Fintech firms cluster in London. Gamers and music-sharing sites do well in the Nordic countries. Berlin has a crop of companies that go beyond the kind of me-too consumer sites incubated by Rocket Internet, a notorious startup factory: new companies with expertise in the “internet of things”, for example. Milan, with strong medical universities, has flourishing biotech startups.

The most striking case of fresh growth is in Paris. Mention of France has long elicited sighs from venture capitalists. Its rigid labour laws and hefty taxes on wealth and on stock options have meant that…Continue reading