10 The EconomistSeptember 14th 2019
The world this week Business
Ren Zhengfei, the founder and
boss ofHuawei, said he was
considering selling his com-
pany’s 5gtechnology, which
has become a source of tension
between America and China.
The Chinese maker of telecoms
equipment has in effect been
locked out of the American
roll-out of 5gbecause of
national-security concerns. Mr
Zhengfei suggested Huawei
would share 5gpatents with a
buyer, along with licences and
codes, but it would continue to
sell its own 5gequipment.The operator of theHong Kong
stock exchangesubmitted a
surprise $36.6bn unsolicited
bid for theLondon Stock
Exchange. Thelsesaid it
remained committed to its
recent agreement to buy
Refinitiv, a financial-data
provider, for $27bn.The gig is up
California’s legislature passed
a bill that will compel firms in
the gig economyto reclassify
their workers as employees
rather than contractors. The
law comes into force on Janu-
ary 1st and will affect many
startups and firms that rely on
low labour costs. Uber and Lyft
lobbied hard against the legis-
lation, arguing that it could
wreck their businesses. Por-
tending a possible legal chal-
lenge, Uber suggested the law
would not apply to its drivers.South Korealodged a com-
plaint at the World Trade Orga-
nisation over Japan’slimits on
exports of materials crucial to
South Korea’s consumer-
electronics industry. Japan
claims the restrictions are
based on national-security
concerns, though its actions
are widely seen as a response
to the decisions of South
Korean courts ordering Japa-
nese firms to pay compensa-
tion for forced labour during
the second world war.Hiroto Saikawa resigned as
Nissan’schief executive, as the
company revealed that he had
received an “improper” in-
crease in share-based compen-
sation in 2013 (it did not accusehim of misconduct). Investors
had also lost confidence in Mr
Saikawa as profits plunged and
relations soured with Renault,
Nissan’s partner, following the
ousting of Carlos Ghosn.Steven Mnuchin, America’s
treasury secretary, went to
Capitol Hill to explain his
proposals for reforming
Fannie Maeand Freddie Mac,
government-sponsored
enterprises that back most of
the mortgage industry. Fannie
and Freddie were bailed out
during the financial crisis. Mr
Mnuchin wants to begin recap-
italisation soon, and has urged
Congress to agree to more
far-reaching reforms.British Airwaysstruggled to
recover from a two-day strike
by pilots over pay, which
caused the airline to cancel the
vast majority of its flights.
Unless the dispute over pay is
resolved another strike is
scheduled to take place at the
end of the month.America’s Centres for Disease
Control advised the public not
to use e-cigarettes, after the
deaths of six people were
linked to vaping. Meanwhile,
the Food and Drug Administra-
tion requested more infor-
mation from Juul, the biggest
e-cigarette maker, about itsmarketing practices, especially
to young people.The Epstein connection
mitappointed a committee to
oversee its Media Labafter
Joichi Ito resigned as director
following press reports that the
lab had accepted donations
from Jeffrey Epstein, the late
disgraced financier, and tried
to conceal them. The Media
Lab is at the forefront of bring-
ing together disparate research
in technology, notably
artificial intelligence.In an abrupt move Saudi
Arabiareplaced Khalid al-Falih
as energy minister with Prince
Abdulaziz bin Salman, an
oil-industry insider. Mr Falih
was also recently removed as
chairman of Saudi Aramco, the
kingdom’s state oil company.
The promotion of Prince
Abdulaziz is a sign that the
government wants to acceler-
ate Aramco’s delayed ipo.Tributes were paid to T. Boone
Pickens, who died aged 91. An
oilman who undertook a num-
ber of audacious takeover bids,
Mr Pickens came to define
American tooth-and-claw
capitalism in the 1980s. He
once said, “I never liked being
called a raider. I never
destroyed anything.”Apple’sannual product launch
underscored the shift in its
strategy towards services, as
sales of the iPhone stall. Rather
than using the event to jack up
prices, Apple is selling the
basic version of the iPhone 11 at
a comparatively modest $699,
which helps it retain custom-
ers. It also priced its new tv
streaming service at $4.99 a
month, undercutting Netflix.
The low price may reflect the
limited content Apple will
screen on the service when it
starts in November.Jack Mastepped down as
chairman of Alibaba, the Chi-
nese tech giant that he founded
20 years ago. Daniel Zhang is
combining the role with that of
chief executive. Mr Ma
announced his retirement a
year ago in order to focus on
philanthropy, but he will
remain on hand to offer advice
to his successor, who faces an
uncertain trade climate.