8 The EconomistJanuary 30th 2021
The world this week Business
America’stechgiantsreported
quarterlyearnings.Apple
smashedanalysts’expecta-
tions,reportingrecordrevenue
of$111.4bnanda netprofitof
$28.8bn.Salesroseacrossall
regions—thebiggestgains
werefromChina—andacross
allofApple’sproductsand
services.Revenuesfromthe
iPhone,whichhavewanedin
recentyears,wereupby17%
yearonyear.Facebookalsoreportedrecord
quarterlyrevenues.Teslamade
itsfirst-everannualnetprofit,
of$721m.Home office reform
Satya Nadella, Microsoft’s
chief executive, described the
switch to home working and
attendant need for cloud com-
puting as a “structural change”
that would outlive the
pandemic. Revenue from the
company’s Azure cloud
platform helped push quarter-
ly net profit to $15.5bn, up by a
third year on year.An ever-louder buzz sur-
rounded the forthcoming ipo
of Kuaishou, the closest rival
to TikTok (known as Douyin in
China). The Chinese firm’s
flotation in Hong Kong may be
the biggest tech iposince Uber.Solid revenues from invest-
ment banking and wealth
management underpinned a
rise of 54% in annual net profit
at ubs, to $6.6bn. The Swiss
bank announced a big share
buy-back programme.Andrea Orcel was appointed
chief executive of UniCredit,
Italy’s biggest bank. One of
Europe’s best-known bankers,
Mr Orcel is close to reaching a
settlement with Santander,
Spain’s biggest lender, for
withdrawing its commitment
to hire him as its ceo.The American Treasury
delayed until May 27th the date
from which Americans are
barred from investing in firms
with alleged ties to China’s
military. It is reviewing the list
complied by the Pentagon
under Donald Trump.Boeingreported an annual net
loss of almost $12bn. It also
delayed deliveries of its new
777 xjet until late 2023. Its 737
maxaircraft has only recently
been cleared for take-off (Brit-
ain and the eudid so this week)
after a 20-month grounding.Theimfincreaseditsestimate
of globalgdpgrowth this year,
to 5.5%. It urged countries to
co-operate across all regions
and income levels to bring
covid-19 under control. The
fund thinks that making
vaccines widely available,
along with other measures,
could bring local transmission
down to safe levels everywhere
by the end of 2022.Merck decided not to proceed
with production of a covid-
vaccine, following disappoint-
ing results from clinical ex-
periments. Meanwhile, John-
son & Johnson was close to
announcing the efficacy datafor the vaccine it has devel-
oped, which could be a single-
dose jab, a potential game-
changer in many countries’
inoculation programmes.BlackRock beefed up its green
strategy. The world’s biggest
fund manager is now asking
the companies it invests in to
show how they would comply
with a “global aspiration” of
net zero greenhouse-gas emis-
sions by 2050. If any of its
holdings in an actively man-
aged portfolio “pose signif-
icant climate risk”, they will be
flagged for sale.Shellagreed to buy Ubitricity,
the biggest provider in Britain
of street charging points for
electric cars, such as those in
lampposts. The energy com-
pany, which already operates
fast-charging points in petrol
stations, is investing heavily in
smart-mobility infrastructure.The share price of amc, the
world’s biggest cinema chain,
jumped by 300% after specu-
lators bet it had enough fund-
ing to survive the next year.
Underlining the disruptive
effect of streaming on film-
viewing habits, at&twrote
down the value of its pay-tv
business by $15.5bn, as
subscribers continued to
abandon the service.A Swiss court sentenced Beny
Steinmetzto five years in
prison, after he and two col-
leagues were convicted of
paying bribes to the wife of a
former president of Guinea in
order to gain rights to explore
for iron-ore deposits. The
complex case stretches back
over a decade, to when the
mining group owned by Mr
Steinmetz’s family obtained
the rights. Multinational min-
ing companies have also been
ensnared in related corruption
charges. Mr Steinmetz will
appeal against his conviction
(it is unlikely that he will serve
any actual time).No longer being served
The doors of Debenhams
department stores in Britain
are to be shut for ever, as a deal
emerged to buy the distressed
company’s name and associat-
ed brands. Boohoo, an online
retailer, has snapped up the
assets, but does not want the
stores. Separately Asos, anoth-
er online outfit, is negotiating
the acquisition of Arcadia’s
brands, which include
Topshop and Miss Selfridge,
and also does not want to buy
any shops. Both high-street
retailers were in trouble long
before covid-19 came along;
lockdowns only compounded
their problems.GDP forecasts
2021,%increaseon a year earlierSource:IMF86420JapanBrazilEuro areaBritainUnited StatesWorldChina