Displaying items by tag: Administration
The decision taken by the Trump administration to effectively ban Huawei from the US market has drastically deteriorated already soured diplomatic relations between Washington and Beijing as the rest of the world anxiously looks on.
US tech giants Apple are the victims of its own incredible success, following a quarterly report which indicated its cash holdings, the vast majority of which is held overseas has surpassed the entire economic out-put of Chile. Apple’s stockpile of cash has reached a staggering $256.8 billion, and has sparked debate over what the technology leaders should do with such massive cash reserves.
It has also refocused attention on the issue of the disincentives in the US tax system, which is why Apple thus far has rejected the idea of bringing the cash home to invest in the US market. The current tax system allows multinational corporations to deter profits while they are held in overseas accounts – but taxes income at up to 35% when repatriated.
However, proposals put forward by President Trump and lawmakers have suggested the tax rate on repatriated earning be lowered, in an effort to lure organizations like Apple to reinvest the cash pile back into the US economy. Analysts have conceded that whilst many multinational conglomerates would gladly be in Apple’s position, he conceded that there’s something not healthy about having that must fiscal power.
Roger Kay, analyst with Endpoint Technologies Associates said: “Normally, you would expect cash to fund investment opportunities, but obviously Apple doesn't have any use for that much cash. Apple has become the most valuable and profitable company of the current era. But the unique challenges it faces because its earnings come mostly from the iPhone, which faces increasingly tough competition in a saturated smartphone market.”
Analysts have suggested that Apple will be face pressure to return more cash to stakeholders with higher dividends and more share buybacks, it has been disclosed that the tech firm have spent somewhere in the region of $200 billion to do this. However, many fiscal experts have claimed that this procedure do not enhance the long-term strategic interests of anyone.
Patrick Moorhead of Moor Insights & Strategy said: “Returning all the cash to shareholders doesn’t help further anyone’s strategic interests. Apple has to find new ways to diversify its business model. One way to do this - would be by going vertical by acquiring a chipmaker such as AMD to supply all Apple devices.”
According to Moorhead, Netflix could complement Apple’s business by offering content for its ecosystem of devices. In addition to this, he suggested that if Apple is really serious about establishing itself as a leader in the autonomous vehicle sector, then it should buy a car company such as Tesla.
It’s clear that President Trump and his administration are attempting to find ways to attract multinationals like Apple to bring those earnings home for investment and job creation in the US, but with a major stimulus from repatriated assets unlikely – it appears that Apple will resist the idea to bring the cash home, unless the tax system is amended to incentivize them to do so.
A number of leading US technology companies are to send a letter to US President Donald Trump in which they will urge his administration to follow through on proposed changes to an executive order in relation to a travel ban on seven predominantly Muslim countries.
The technology companies expected to sign the letter include firms such as Apple, Facebook, Alphabet, Google, Twitter, Microsoft and Yahoo. The tech firms are keen to establish clarity on the issue as the travel ban would significantly impacts its workforces.
President Trump signed an executive order on January 27th which imposed a 90-day ban directly affecting citizens from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen – and the order also included a 120-day bar on all refugees. It sparked worldwide protests - and resulted in chaos at airports with some passengers trapped at airports - while others were left stranded overseas.
However, a federal judge put a temporary nationwide block on the executive order, which angered the Republican US president – who proceeded to blast the judge and the court system – and vowed to execute the order.
A draft of the letter from US firms has been leaked, and in it the tech giants have requested that their employees can travel with predictability and without undue delay.
"We welcome the changes your administration has made in recent days in how the Department of Homeland Security will implement the Executive Order. We stand ready to help your administration identify other opportunities to ensure that our employees can travel with predictability and without undue delay. We are concerned that your recent Executive Order will affect many visa holders who work hard here in the United States and contribute to our country's success our ability to grow our companies and create jobs depends on the contributions of immigrants from all backgrounds."
It has been reported that the US tech firms are set to post the letter to President Trump today.
Two leading Middle Eastern based telecom operators have agreed to sign a MoU to exchange administrative and technical expertise.
UAE operator du and Zain KSA signed a Memorandum of Understanding (MoU) to develop their human resources through knowledge exchange sessions. The two operators joined hands to share experiences and operational plans during the agreed period, in addition to holding periodic workshops that address several areas of interest and development.
The MoU was signed by Sultan Al-Shahrani, Chief Human Resources at Zain Saudi Arabia, and Ibrahim Nassir, Chief Human Capital and Administration Officer at du, in the presence of senior officials from both sides.
Commenting on this cooperation, Sultan Al-Shahrani said: "This agreement is aligned with Zain’s strategy for the development of human resources; it gives us a unique opportunity to benefit from du’s administrative and technical expertise in the region through staff exchange programs, joint ventures, and training programs. In addition, this MoU enables us to further align our strategy the Kingdom's 2030 vision, which focuses on providing citizens with the necessary knowledge to adapt with future labour market needs and skills. We will increase our investment in human capital for developing the performance and rehabilitation of national Saudi employees.”
"The rapid evolution of ICT that is permeating every aspect of life is driving our need to further extend and develop our human capital, and enhancing the effectiveness of our staff through collaboration is one of the main factors to achieve the required growth rates,” commented Ibrahim Nassir. “The MoU with Zain will strengthen our two companies’ staff expertise and the level of services we offer. While we will develop our employees’ skills across different departments and disciplines through continued training programs and prominent partnerships, we also aim to include creativity and innovation in all our operations to achieve excellence and success."
The first program under the agreement, which started on September 26th and lasted for two weeks, offered the opportunity to rotate functional teams in order to enhance communication and interaction between the two companies. Abdullah Al Sameiri visited Zain Centre in Riyadh and exchanged experiences and ideas on how to develop In-Building Solutions with the company staff and officials. During the program there were sessions and discussions about enhancing the experience of human and technical resources.
Abdullah Al Sameiri said: "As the first participant in the exchange program with Zain, I am witnessing the way that collaboration is contributing to creating new channels for the flow of information with staff in the same field. During our meeting, we discussed several issues related to how to develop In-Building Solutions and the importance of sharing knowledge in the development of human resources between the two companies. Additionally, we discussed advanced solutions and tools that can enhance the development of services we plan to introduce in the future. Moreover, we shared opinions about the difficulties faced by the telecoms companies in our region as well the strategies and policies to be followed for improving our processes and services.”