Rabu, 04 Desember 2019

Elon Musk attempts to explain Twitter to normal people in court - The Verge

There are so many lawyers, and they are all wearing nondescript suits in blue or gray that are cut badly in the upper arm area. I have seen many shapes and styles of shoulder pads, all of them bad. I have seen an improbable amount of hair gel. I have seen loafers, flimsy and sturdy. I have seen, among the trial’s observers, a man wearing two sets of glasses, one over the other, presumably to avoid having to buy bifocals. The best-dressed people in the room are in the jury, and it’s not close. (The jury has been instructed not to read the press, so it’s not like I’m sucking up here.)

The Honorable Stephen Wilson, in explaining the case, tells the fortyish prospective jurors that Elon Musk “posted a series of tweets on his Twitter” very sincerely, a statement that had been tediously ironed out with both sets of lawyers the day before. None of them, apparently, viewed “posted tweets on his Twitter” as a howler; but first of all, “tweeted” is a fine strong verb. Second, where else would Musk post his tweets if not his Twitter account — Facebook?

We are convened because Elon Musk, following in the footsteps of American icon Courtney Love, has been sued for Twitter defamation. The claim was brought by Vernon Unsworth, who helped rescue a boys’ soccer team and their coach from the Tham Luang Nang Non cave system in Thailand.

It’s… a little convoluted but the basic facts are these: the soccer team became an international media frenzy straight out of Ace in the Hole after they were reported missing on June 23rd, 2018. After initially telling a Twitter rando that “I suspect that the Thai govt has this under control, but I’m happy to help if there is a way to do so,” Musk commandeered several SpaceX engineers to build a mini-sub. They then brought the sub to Thailand in the hopes of assisting the rescue operation. By the time Musk arrived in Thailand with the submarine on July 9, eight of the 13 people trapped in the cave had been rescued.

After they had all been rescued, Unsworth went on CNN. He’d assisted with the rescue since the beginning, on June 24th, and suggested that the Thai government contact world-class cave divers. Unsworth was not feeling charitable about Musk’s contributions, calling the sub a “PR stunt” with “absolutely no chance of working.” Also, he said Musk could “stick his submarine where it hurts.” For some reason, everyone who has spoken so far, including Musk, construes this as “stick it up his ass” though a submarine would probably hurt in plenty parts of one’s body if enough pressure were applied. An armpit, for instance. A belly button.

Musk testified that he watched the CNN clip on Twitter “two or three times” before sending the tweets that brought everyone into the courtroom today. He said he’d show that the submarine could navigate the caves. He capped off the three-tweet rant with “Sorry pedo guy, you really did ask for it.”

It is the “pedo guy” that appears to be the crux of the case. The jury will decide if the tweets count as recklessly negligent.

O jury, where art thou?

But first we had to find a jury. Four people said they were Tesla owners — one of whom specified that he had an old-school Roadster, one of whom said they had both an X and an S — but this would not impair their judgment. Three people had connections — as contractors or shareholders — with SpaceX or Boring Company, but were similarly confident about their judgment. One prospective juror said that he had an upcoming job interview with SpaceX and could not be impartial. He was excused. Two other jurors were excused because they followed Musk on Twitter.

After the bulk questions, eight prospective jurors were called into the box and questioned individually. These people were asked more specific questions about whether they were related to any lawyers, what their spouses and kids did and whether they had any “strong opinion, whether negative or positive, about whether someone is a billionaire.” Most people answered no; an aesthetician who answered “yes” was excused. Only one prospective juror indicated he had strong opinions — “both negative and positive” — about Musk. He ended up on the jury.

A turd in the punch bowl

Then it was time for opening statements. Taylor Wilson, a partner at L. Lin Wood and a lawyer for the plaintiff, put up a chart I couldn’t see with a lot of dates on it. (The chart was aimed at the jury and would continue to obscure my view all day.) He then walked through the dates of the basic action around the tweets with the energy of a nervous middle schooler doing a monologue at the school play. Not only did Musk call Unsworth a “pedo guy,” Wilson pointed out, when Kevin Beaumont sarcastically called the tweet “classy,” Musk replied “bet you a signed dollar it’s true.” (The “signed dollar” tweet has also been deleted.)

Musk apologized on July 17, but that wasn’t the end of it. Wilson rather irritably told the court that despite the apology, Musk did not retract his “worldwide accusation on Twitter” that Unsworth was a pedophile. Wilson then told the court that Musk’s family office retained a PI to look into Unsworth and on August 28th, instructed the investigator to leak negative information to the press. (It would later emerge that the PI was, in fact, a con man.)

There were a few other subsequent events Wilson brought up to show that Musk must have been serious about calling Unsworth a pedophile: a reply to Drew Olanoff saying “you don’t think it’s strange he [Unsworth] hasn’t sued me?” and an email to BuzzFeed News reporter Ryan Mac where Musk called Unsworth a “child rapist.”

Musk was accusing Unsworth “of being a pedophile during what should have been the proudest moment of his life,” Wilson said. In other words, according to Wilson, Musk metaphorically shat in the punch bowl.

An argument between two men

In response, Alex Spiro — a former assistant district attorney with a real Miles Teller vibe, who is now a partner at Quinn Emanuel Urquhart & Sullivan and has represented Jay-Z — rose to give an opening statement from the defense. This was an argument between two men, he noted extremely correctly. He suggested that the plaintiff’s lawyers were changing the context on the exchange.

He set the stage on the Thailand thing differently. See, life and death hung in the balance. Naturally, the solution was hero engineers. (At this point, my notes read: “Spiro speaks better than Wilson but this defense is deeply goofy.”) Spiro rather dramatically told the courtroom “Thank God the pod was never needed.” He then pointed out that no one on the engineering team sat for an interview or took any money for their efforts.

Spiro then made the argument that “stick the sub where it hurts” was understood as a colloquialism. He notes that Unsworth incorrectly said in his CNN interview that Musk was asked to leave the cave, and that it was only Unsworth’s opinion that the minisub didn’t work. (I am now hoping for some extremely petty video evidence about whether or not the minisub works, which is possibly the least important part of this entire debacle.) According to Spiro, the hurtful part was calling Musk’s efforts a publicity stunt.

There are two basic mistakes to make on the internet, and Musk would proceed to make both of them. The first is to do a Google search in lieu of actual research, and Musk — immediately after seeing the video — did this. Through Google, Musk determined that Unsworth lived in Chiang Rai province in Thailand; an article somewhere named the province as a significant area of child sex trafficking.

From there, Musk proceeded to make the second mistake, which is to tweet. Armed with his Google knowledge, Musk called Unsworth a “pedo guy.” Spiro maintained that it was a “fill-in-the-blank insult” and that the Google search was just to determine an effective way to insult Unsworth. “These tweets are not allegations of crimes,” Spiro said. “They are joking, taunting tweets in a fight between men.”

Sprio then coined the worst acronym I’ve heard in years, and I edit stories about aerospace so I know from bad acronyms. It is: JDART, for joking, deleted, apologized-for, responsive tweets. See, because the tweets were in response to the CNN interview.

As for the later statements — which could be construed as doubling down — and the hiring of the PI, Spiro said that Musk was simply trying to get information because a lawsuit was imminent. (Truth is a defense against a defamation claim.)

Spiro then proceeded to question whether Unsworth was as upset as he claimed; after all, he’d been featured in GQ’s Men of the Year, received an award from the United Kingdom’s Queen (Member of the Most Excellent Order of the British Empire, a name in extremely questionable taste for an award as empires are currently out of fashion), and was honored by the King of Thailand.

Then, mercifully, we broke for lunch.

Musk takes the stand

After I ate two Cliff Bars sitting outside the courtroom, Musk showed up to testify in a positively funereal black suit and blue-gray tie, flanked by security guards. L. Lin Wood, a Philip Seymour Hoffman character who somehow got loose from the bounds of cinema and showed up in reality, handled the cross-examination. Wood was possessed of a certain oleaginous charm and generally bumbling manner, which belied the work he’d done on behalf of clients like Herman Cain, JonBenet Ramsey’s parents, and Richard Jewell, who was named as a suspect in the 1996 Olympic bombing before being cleared.

Anyway Wood began by asking about Twitter dot com. I live for this.

It rapidly became apparent that whatever pretrial prep Wood has done is insufficient for him to understand the Nature of Posting. Wood explained that before 2018, Musk knew that his Twitter account was used in part to convey factual information. It is. It is also used for Ambien tweets, reflections on anime, rumormongering, and fantasies about a volcanic lair. People on Twitter can assert anything that comes to mind, Musk said, “true, untrue, half-true. It’s where people engage in verbal combat. There’s anything on Twitter.”

Wood spent a great deal of time asking very similar-sounding questions. It is possible Wood did this because he’s rusty at trial; it is possible it was a deliberate strategy to make Musk lose his temper. It’s possible there is some reason I am not thinking of. Through most of the following, Musk sat with his arms crossed and resting on the table in front of him.

Wood attempted to establish that Musk is influential. Musk wasn’t having it. “I’m not sure to the degree I’m actually influential,” Musk said. Wood tried again: Musk is recognized as the pioneer who wants to take people to Mars. “I’m influential in the domains of climate change and rockets,” Musk admitted. “But this doesn’t mean I can change someone’s opinion in other areas.”

As a person who speaks publicly, though, Musk surely must know the value of choosing his words carefully, Wood suggested. At that point it occurred to me that Wood had probably never seen a Musk press event — for instance, the Neuralink one earlier this year where Musk shocked his own team by revealing that “a monkey has been able to control a computer with its brain” using that tech. “There are a lot of things I say and not all of them have the same quality of thought,” Musk said, in what was likely the understatement of the decade.

Wood seemed to switch tacks, going through old emails to establish a timeline for Musk’s work on the submarine. Musk says that at first he thought his help wasn’t needed, but then after a Thai Navy Seal died and reports of an imminent monsoon, he figured “it would be on my conscience forever” if he didn’t take action. Musk walked through the details of getting in touch with Rick Stanton, who coordinated the operation, doing what essentially amounted to a hackathon with his engineers, then flying to Thailand to drop off the sub. Musk sent his team ahead while he met with the Thai prime minister, then took the sub to the Navy Seals, headed into the cave to the dive point, posted a photo from the cave on Twitter, then left for his hotel room. The next day, he flew to Shanghai for a pre-planned business meeting.

At this point, Wood tried to enter an email exchange into evidence, resulting in a great deal of confusion on Judge Wilson’s part about how email reply chains work. (You read from the bottom.) After that confusion was resolved, a July 10 email was entered into evidence: “btw my gf just texted me saying the head of the Thai rescue team said the solution isn’t practical & the press is turning against me.” Wood noted that members of the media, before Unsworth said anything, had described the sub as a PR stunt.

Here is where we come to Musk’s third mistake: he had a Google alert set up on his name. (“Not anymore.”) He wasn’t quite sure where he’d seen the Unsworth interview, but he thought maybe Twitter. Musk posted the “pedo guy” tweets “minutes to hours” after seeing the video. The video was then played for the court; Musk turned pink while he watched it.

At this point, the “pedo guy” Twitter thread was entered into evidence, and the befuddled court had to be told that the reply chains work the other way on Twitter — the first tweet is at the top, and the last tweet is at the bottom. Musk helpfully explained Twitter’s reply mechanism means that when you reply to someone, it’s less visible than when you simply tweeted. Then the meaning of the slang “sus” was explained to the court.

Wood asked if Musk knew who Unsworth was when he tweeted. Musk thought he was “a random creepy guy” who was unrelated to the rescue. Wood then asked a series of questions establishing at length that Musk didn’t know who Unsworth was, apparently trying to get a rise out of Musk. Wood’s take on the apology tweet was that it was insufficient, because it did not clarify that Musk didn’t mean Unsworth was not literally a pedophile.

A very testy exchange between men

At this point, perhaps inevitably, we come to the conman: James Howard, a convicted felon. Howard had been trying to get in touch with Musk about investigating Unsworth; Musk was not directly involved in contracting Howard; Jared Birchall, who runs Musk’s family business Accession LLC and who has served briefly as an officer of Neuralink and the Boring Company, contracted Howard, who was paid $52,000. There was a $10,000 bonus for verified information on misconduct by Unsworth; Howard never got the bonus.

Birchall apparently told Musk that the investigator claimed he had verified information that Unsworth met his wife when she was 12. Musk said he wanted copies to make sure the information was true; Howard couldn’t provide the information.

Wood then switched back to Twitter. Musk’s August 29 tweet suggesting it was weird Unsworth hadn’t filed a lawsuit is teed up again. Wood told Musk he’d sent Musk a letter about his intent to file suit unless they could work something out; Musk said he’d been told about the letter but may not have read it. Wood dug up Musk’s sworn deposition, where Musk said he’d read it. Musk then said he interpreted the letter as a “shakedown,” “extortion.” “I get these shakedown letters quite a lot.”

This visibly irritated Wood. He asked Musk where in the letter the shakedown occurs. Musk said that Wood couches it in fancy language but Musk knows what it means. “I think you’re looking for a significant payday.” Wood seemed to take this personally, and a very testy exchange between men occurs. “You don’t work for free,” Musk said to Wood. “Neither do you,” Wood said to Musk. Judge Wilson told both men in fancy language to settle down.

So Wood moved on to Musk’s emails to Buzzfeed reporter Ryan Mac, who was sitting in front of me and shifted uncomfortably as several people, including members of the plaintiff’s legal counsel, turned to stare at him. Mac’s jaw worked. (I asked him after the trial if he had any on-the-record comment about his star turn and he referred me to a tweet: “After eating and thinking about it for 2 hours, my main takeaway from court today is that I would never want a jury to decide my fate based on my tweets blown up on a big screen.”) Wood had Musk read aloud the “I fucking hope he sues me” portion of the email. “I guess be careful what you wish for,” Musk said.

Judge Wilson interjected to tell the jury that Mac’s email is not part of the defamation claim.. Frankly, by this portion of the afternoon, Judge Wilson seemed cranky.

Well, who could blame him. Musk had been testifying for almost four hours. My back hurt — courtrooms are not ergonomic. And finally, we came to “pedo guy;” insult or accusation? Musk maintained that it was an insult, he didn’t clarify that because he didn’t think it required clarification, and he didn’t mention it in the apology because he thought it would make things worse. Besides, according to Musk, calling someone a “pedo guy” just means they’re creepy. “Pedo guy is less — it’s a frivolous insult. ‘Guy’ does not add gravitas to a statement.” After this somewhat deflating exchange, Wood rested his cross.

In the five minutes left in the day, Musk’s lawyer, Spiro, began asking Musk biographical questions, establishing that Musk was a father of five. That his first son had died as an infant. That Musk grew up in South Africa and his childhood was [long pause] “not good.” Judge Wilson ends promptly at 5PM PT, which is good news for the jurors. Though they were attentive, some of them seem to have lost the thread of questions a few times. It’s hard work, witnessing exchanges between men.

We’ll all be back at it at 9AM PT on Wednesday.

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2019-12-04 07:14:26Z
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Selasa, 03 Desember 2019

How Amazon created AWS and changed technology forever - MarketWatch

SEATTLE — Twenty years ago, Amazon.com Inc. was an online bookstore that was powered by the same servers and systems that other companies used.

In trying to expand beyond books, Amazon AMZN, -1.44%  developed a new way to power its website, pushing it to the most important e-commerce site of the new millennium. In doing so, it developed Amazon Web Services, as well as the entire concept of cloud computing as an industry, which may go down as the most influential breakthrough Amazon has managed.

Launched the year before Apple Inc. AAPL, -2.31%  introduced the iPhone, AWS has changed technology in a similarly outsize way. Apple cemented the mobile age, but it was Amazon that ushered in the cloud era, which has changed the way businesses use technology in the same extreme way that smartphones have changed consumers’ tech habits.

From a 22nd-floor conference room in re:invent, one of three Amazon towers overlooking the Seattle skyline, AWS executives with more than 30 collective years in the division recently gathered to discuss exclusively with MarketWatch how Amazon Web Services grew from a germ of an idea to a fledgling division to what is now Amazon’s fastest-growing source of revenue, and most important and stable profit source.

It’s the story of a project designed to solve a software and database system that at the time limited the e-commerce pioneer to selling books. Beyond spurring Amazon to incredible growth beyond books, AWS blossomed into an industry-shifting technology that lets companies rent computer power and offers tools to businesses and other organizations over the internet.

“I don’t think any of us had the audacity to predict it would grow as fast as it did,” AWS Chief Executive Andy Jassy said in a fireside chat in France in June.

The success of AWS has created a multibillion-dollar cloud market that Amazon still clearly leads, but the growth has attracted deep-pocketed rivals such as Microsoft Corp. MSFT, -0.82%  and Alphabet Inc. GOOGL, +0.09% GOOG, +0.16%. As AWS prepares to host the largest cloud-computing conference in Las Vegas this week — also named re:invent — it faces more challenges than ever, as rivals now seek to siphon off significant portions of a cloud-computing market that AWS created from scratch.

In the beginning

The roots of AWS extend back as early as 2000, when Amazon was an e-commerce company coping with scale problems. As it attempted to add new applications to serve its retail customers, Amazon was hamstrung by “monolithic” software and sets of databases that, as Chief Technology Officer Werner Vogels put it, required rewriting swaths of computer code.

Amazon began to splinter its three largest data sets — customers, goods and orders — into separate items that, in turn, were broken down into smaller units, such as login information or security requirements. At the same time, Amazon began offering computer systems and tools, such as renting IT infrastructure and applications online to other tech ventures, so they could sell their own products via Amazon.com.

Moving to that type of structure allowed Amazon customers to outsource their computing needs — be it storage, servers or networking — on a pay-as-you-go basis. “That was the driver for what later became AWS,” Vogels said.

“Very quietly around 2000, we became a services company with really no fanfare,” Jassy has said.

The timing was precipitous — as more companies began to look to store vast troves of data and computing power, Amazon was pouring billions of dollars into research and development. What became AWS first surfaced in 2004 and officially launched in 2006, with its first cloud products Simple Storage Service (S3) and Elastic Compute Cloud (EC2), and by 2015 it was bringing in nearly $8 billion a year.

Amazon wasn’t just the first to market with a modern cloud infrastructure service: It built on its product with applications for robotics, artificial intelligence, machine learning and a phalanx of databases.

Consider: DeepLens gives developers a view of machine learning via a fully programmable video camera. The RoboMaker app helps companies develop and deploy robot control systems. (The code name for AWS’s robotics effort was B9, after the iconic robot in the 1960s TV series, “Lost In Space.”) The Database Freedom program helps customers shift from traditional database engines to cloud-native ones on AWS. Special-purpose hardware like AWS’s Snowmobile data-storage boxes can move petabytes of data.

“Ten years ago, [Amazon CEO] Jeff [Bezos] and Andy [Jassy] understood [machine learning] would transform Amazon in a big way,” Swami Sivasubramanian, vice president responsible for artificial intelligence and machine learning at AWS, told MarketWatch.

“Historically, [machine learning] has been hungry for compute infrastructure and data, but it was not accessible for most companies,” said Sivasubramanian, who as a research intern at Amazon in the early 2000s saw the potential of the cloud-computing concept. “AWS is making it accessible.”

For more: The engine for Amazon earnings growth has nothing to do with e-commerce

Shawn Bice, vice president in charge of database business, added that AWS’s full embrace of specialized databases has eased the ability of customers to adapt quickly, and easily, to the cloud.

To deliver customers the computer capacity necessary for AI, data analytics and other advanced technologies, Amazon has assembled a network of new data centers in more than 20 geographic regions.

Forrester estimates AWS spends billions of dollars each quarter building new data centers or expanding existing ones. Few cloud vendors can match Amazon’s spending, according to Forrester.

The behemoth of a booming industry

As first to market, AWS has benefited handsomely — revenue catapulted 47% to $25.7 billion in 2018, Amazon reported. Amazon accounted for 48% of the $32.4 billion in global sales generated by providers in the infrastructure as a service, or IaaS, market, according to a report from market researcher Gartner Inc. (Rival Microsoft was next, at about 15%, up from 12.7% in 2017. Alibaba Group Holding Ltd. BABA, -1.10%  and Alphabet’s Google came in at 7.7% and 4%, respectively.)

Expect more. Much, much more. AWS is on pace to grow to $45 billion to $50 billion in 2020 — which would surpass Oracle Corp. ORCL, -1.14%  as the second-largest enterprise software provider — MKM Partners analyst Rohit Kulkarni predicted in late October. And global cloud infrastructure revenue is expected to triple over the next three years to $133 billion, with AWS and Microsoft’s Azure cloud business getting the lion’s share, according to Forrester Research.

Amazon reached those stratospheric heights using the same recipe it has applied assiduously to its other mega-businesses, hewing closely to a companywide strategy of 14 “leadership principles“ — “Customer Obsession,” “Are Right, A Lot,” “Invent and Simplify,” and “Have Backbone; Disagree and Commit” — that are uttered endlessly by Amazon executives.

“It’s like a religion about the customer,” Vass says. “Jeff Bezos says you can’t predict your competitors or what the government will do. But you can invest heavily in the customer point of view.”

See also: It’s Apple vs. the cloud in race to be the world’s most valuable tech company

It sounds like bland culture-speak, but it is tough to argue with the results. By outlining the parameters of a product with a customer before building the technology — or “working backwards from the customer,” as Bill Vass, vice president in charge of edge computing and Internet of Things devices at AWS, puts it — AWS has been able to amass millions of customers that include big-name clients like Intuit Inc. INTU, -0.94%, Netflix Inc. NFLX, -1.52%, General Electric Co. GE, -1.08%, Expedia Group Inc. EXPE, -1.41%, Lyft Inc. LYFT, +0.08%, Siemens AG SIE, +0.62%  and McDonald’s Corp. MCD, -1.12%.

AWS has “built a sizable ecosystem to support the variety and scale of needs required by its customers,” said Lindsey Koshansky, vice president of clinical innovation at Locus Health, a Charlottesvile, Va.-based digital-health company that is an AWS customer.

Competition taps into the force

The AWS success story has redefined the tech industry in such a way that it has radically altered the business blueprints of some of the biggest names in the history of technology, such as Microsoft, Google, Oracle and International Business Machines Corp. IBM, -0.66%, just to start. They’ve all scrambled to catch up to AWS and grab a slice of an expanding market.

Meanwhile, the market has changed, allowing these other companies to develop a strategy that could make them stand out against Amazon, or at least compete with the titan of the industry. The move toward a “hybrid-cloud” strategy of keeping some data and actions on-site and using cloud-computing for other tasks seems to have benefited Microsoft, while businesses seeking to strike deals with multiple cloud providers has been beneficial to Google.

Gartner analyst Nag sees opportunities for Microsoft to leverage its dominance as a software-as-a-service provider to make inroads in winning big cloud contracts. “Microsoft owns the desktop. Microsoft owns the OS. And Microsoft owns the apps,” Nag told MarketWatch. “It has to bully pulpit to effectively drive vendors to the cloud.”

AWS’s sheen of invincibility in the cloud was punctured in October, when what looked like a slam-dunk contract win of a 10-year, $10 billion pact with the Pentagon, known as JEDI, turned into a shocking loss to Microsoft and warnings from some analysts of a fundamental shift in where the market is headed.

See also: Amazon files suit, challenging Pentagon’s award of $10 billion deal to Microsoft

“With JEDI, I believe the game has changed and the market perception will provide Microsoft the opportunity to apply significant pressure to AWS,” Futurum Research analyst Daniel Newman told MarketWatch, noting just 20% of enterprise workloads are currently in the cloud. “AWS had the first-move advantage. But it is not as deeply entrenched as Microsoft at corporations. We will get closer to parity over the next four, five years.”

He predicts Azure, which cleaved off 1% of market share from AWS in 2018, will continue to make gains this year and into the future.

How big a gain? How about enough to make it Microsoft’s biggest business, at a projected $90 billion in fiscal year 2023, according to a Nov. 18 research note from Stifel Nicolaus analyst Brad Reback. He said most potential business customers are in the early stages of shifting their computing tasks to the cloud, and Azure is best positioned to appeal to them because of Microsoft’s strong enterprise-software offerings.

Microsoft has said little about the JEDI award, but John “JG” Chirapurath, general manager of Azure data, blockchain and artificial intelligence at Microsoft, told MarketWatch, “We see some of the largest corporations on Earth adopting the Azure model for the same reason” that the Pentagon chose Microsoft — a hybrid-cloud setup, with deep data analytics and security.

“Hybrid is really the default computing situation for every large customer. It is here to stay,” Chirapurath said in a phone interview. “When I look ahead, the customer condition is not going to be one cloud or the other. The first thing I see is hybrid. Not just on-premises, but adopting technology on the edge. The second big area is data analytics.”

From 2015: How the cloud has made this tech boom different from the dot-com era

Companies that choose between AWS and Azure do not want to be locked in completely to those vendors, however, which opens the door to other vendors to jump in. Large companies want a multi-cloud strategy beyond a public option, said IBM Chief Information Officer Fletcher Previn.

“They want to avoid vendor lock-in,” he told MarketWatch. “A stove-piped AWS can be hard.”

Will Grannis, Google Cloud founder and managing director of the CTO Office, cites a recent Gartner survey of CIOs that showed 81% are consuming multiple clouds.

“The market is shifting from the mono-cloud to multi-cloud,” Grannis told MarketWatch in a phone interview. “We’re also in the third wave of cloud, in which customers have moved from a strategy of (technology) rental to building their own platforms and applications to do cool and interesting things. And we’ve built some incredibly successful platforms at Google, like Android and Chrome.”

The variety with which companies large and small are adopting cloud computing underscores its evolving nature and the opportunities that await Amazon, Microsoft, Google and others, according to Sean Feeney, cloud practice director at digital consultancy Nerdery.

AWS executives can relate. As the architects of a comparatively new market, they know its story is far from told.

“The shift to cloud is in its early innings,” Ariel Kelman, chief marketing officer at AWS, told MarketWatch from the company’s San Francisco offices. “It is a big and growing pie.”

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2019-12-03 16:23:00Z
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AK Steel’s stock jumps after $1.1 billion buyout deal with Cleveland-Cliffs - MarketWatch

Shares of AK Steel Holding Corp. rose Tuesday, after the steel maker agreed to be bought out by iron ore mining company Cleveland-Cliffs Inc. in an all-stock deal valued at $1.1 billion.

Gains were pared, however, as the tumble Cleveland-Cliffs’s stock effectively swung the value of the buyout bid to a discount from a premium.

Under terms of the deal, which is expected to close in the first half of 2020, AK Steel shareholders will receive 0.40 shares of Cleveland-Cliffs common stock for each AK Steel share they own.

Based on Monday’s stock closing prices of $2.89 for AK Steel and $8.41 for Cleveland-Cliffs, the deal values AK Steel shares at $3.36, or a 16% premium. That implies a market capitalization for AK Steel of about $1.06 billion. Cleveland-Cliffs had a market cap of $2.27 billion on Monday.

AK Steel shares AKS, +3.81%  advanced 3.1% in morning trading, paring earlier gains of as much as 4.8%, while Cleveland-Cliffs’ stock CLF, -13.02%  tumbled 14.3%.

At current premarket prices, the deal would value AK Steel stock at about $2.88, or a penny discount to Monday’s closing price.

Stock deals often cause the acquiring company’s shares to fall, as issuing new stock to fund the acquisition would dilute shareholder value.

The merger announcement comes a day after President Donald Trump gave a boost to shares of steel producers, by saying he was bringing back tariffs on steel imports from Brazil and Argentina, as retaliation for currency devaluations. AK Steel shares ran up 4.7% on Monday and Cleveland-Cliffs’ stock climbed 5.3%.

Don’t miss: Trump brings back tariffs on Brazil and Argentina as deadline for China levies approaches.

Cleveland-Cliffs shareholders will own 68% of the combined company, which will be led by current Cleveland-Cliffs Chairman and Chief Executive Lourenco Goncalves. AK Steel Chief Executive Roger Newport will retire.

“For Cliffs, we expect to realize immediate growth and a long-desired objective of a more diverse customer base, as well as more predictable cash flow generation due to the contracted nature of AK Steel’s sales of high-end automotive steel,” Goncalves said in a statement.

The companies expect the combination to generate about $120 million in cost synergies per year, which are expected to be realized within the first 12 months after closing, primarily from consolidating corporate functions, eliminating duplicate overhead costs, energy cost savings and supply chain efficiencies.

“The combination of Cliffs’ iron ore pellet capabilities and our innovative, high-quality steel product development and production is strategically compelling,” AK Steel Chief Executive Roger Newport said. “Together, we expect to be able to take advantage of growth opportunities faster and more fully than either company could on its own.”

As the deal is completed, three existing members of AK Steel’s current board of directors will join Cleveland-Cliffs board, while two current Cleveland-Cliffs board members will step down. The combined company will be headquartered in Cleveland, but a “significant presence” will be maintained at AK Steel’s current headquarters in West Chester, Ohio.

AK Steel’s stock has soared 32.4% over the past three months, but has lost 8.6% over the past 12 months, while Cleveland-Cliffs shares have lost 25.0% the past year and the S&P 500 index SPX, -1.10%  has advanced 10.3% the past year.

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2019-12-03 13:33:00Z
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Here’s What Happens to Markets If U.S. Tariffs on China Kick in Dec. 15 - Yahoo Finance

(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. 

President Donald Trump’s latest missives on trade are a wake-up call to markets close to record highs that a major deadline is looming with China.

The Dec. 15 flashpoint on tariffs was thrown into sharp relief Tuesday when Trump said he sees no urgency to complete a deal, right after he threatened an assortment of trading partners with levies.

“If tariffs scheduled for Dec. 15 are implemented it would be a huge shock to the market consensus,” said Sue Trinh, managing director for global macro strategy at Manulife Investment Management in Hong Kong. “Trump would be the Grinch that stole Christmas,” she said.

Global equities came within a whisker of their all-time high last month, propelled in part by swelling optimism that at least an interim U.S.-China trade deal was in the offing. Meantime, the clock kept ticking towards Dec. 15, when Trump has threatened to impose 15% levies on $160 billion of Chinese imports.

With about two weeks to go on the China front, the Trump administration Monday hit Brazil and Argentina with steel tariffs and proposed levies on France as punishment over a tax that’s hit large American tech companies.

Moves by self-styled Tariff Man Monday were enough to trigger the biggest Wall Street sell-off in eight weeks -- with a little help from a weak U.S. manufacturing report.

“I have no deadline,” Trump told reporters Tuesday in London when asked if he wanted an agreement by year end. Stocks fell.

The U.S. president suggested that in some ways, it might be better to wait until after the November election.

The following are the views of a number of market participants on what happens if the tariffs on China kick in Dec. 15.

‘Gloomy Future’

It will be “definitely risk-off across the screen,” Tongli Han, chief investment officer at Deepblue Global Investment, said in an interview with Bloomberg TV. “What happened recently makes this trade deal more costly for Chinese leaders -- so I’m seeing a gloomy future for the short term, one-to-two months.”

Better Luck Next Year

With the clock running down on 2019 and a prospects of a trade deal looking more remote it’s time for investors to take a little bit of risk off the table, said Steve Brice, chief investment strategist at Standard Chartered private bank, on Bloomberg TV.

“It looks like it’s going to be pushed to the beginning of next year at the best case,” Brice said. The message to investors is “maybe trim a little bit of equity exposure, or certainly not chase the market at this stage. But look to do so in the next few weeks if we see a 5-to-7% pullback.”

Longer term, Brice remains optimistic “the U.S. and China will still strike a deal of some sort. That will reduce uncertainty and help the global economy do well.”

Optimism Dashed

For Kerry Craig, global market strategist at JPMorgan Asset Management, a key concern is markets have already priced in the prospect of a trade deal that has yet to be signed.

“There had been a lot of optimism built in around a trade deal and it’s still the thing that will weigh on markets over the coming months,” Craig said on Bloomberg TV. “In the meantime we need to see more of a pick-up in the global economy to really offset some of those uncertainties.”

Buy the Dip

For some, the retreat in equities at the start of the week already presents a buying opportunity.

“I’d fade the correction today,” Eli Lee, head of investment strategy at Bank of Singapore, told Bloomberg TV.

The renewed tariff pressures on South America and Europe are likely an effort to bolster Trump’s “tariff man” image ahead of a trade deal with China, he said.

“With the economy in a very delicate situation, if this came on, it would seriously ratchet up the risk of a recession -- and the White House wouldn’t want this situation going into the 2020 presidential election next year,” Lee said.

‘Wild Day’

There may be some massive initial market swings in store, said Chris Weston, head of research at Pepperstone Group Ltd. in a note to clients.

“We could face a wild day,” he said. The S&P 500 is likely to fall about 2%, with currencies including the yuan, Australian dollar and Korean won also likely to move, he said. A relief rally may be in the offing afterward, particularly if there’s agreement to revisit talks in 2020, he said.

Even Worse?

“Even if there is a trade deal, it doesn’t solve most of the issues that we still have with China,” which is something that markets are going to have to reflect in time, said Christopher Smart, chief global strategist at Barings Investment Institute, on Bloomberg TV. “In fact, it probably makes the relationship more difficult to manage, because we’ve taken tariffs off the table.”

Smart said “time is running out” to get a deal done this year, given the logistics involved in setting up a presidential meeting. What does offer solace is that global central banks have eased policy and injected liquidity, postponing the recession that investors had been worrying about, he said.

“We would hope that a bout of common sense breaks out,” Philip Shaw, chief economist at Investec, told Bloomberg TV. “Don’t forget that this situation is very volatile -- it swings to and fro. We wouldn’t interpret too strongly events of one day.”

(Updates with latest Trump comments on timing for a China deal.)

--With assistance from Cormac Mullen, Andreea Papuc, Joanna Ossinger and Francine Lacqua.

To contact the reporters on this story: Eric Lam in Hong Kong at elam87@bloomberg.net;Gregor Stuart Hunter in Hong Kong at ghunter21@bloomberg.net

To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Cecile Gutscher

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

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2019-12-03 11:51:00Z
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Stock futures turn lower as Trump says China deal could come after election - MarketWatch

U.S. stock futures promptly turned lower Tuesday as President Trump introduced doubt, at a London press conference, that a trade deal with China was imminent. "In some ways I like the idea of waiting until after the election for the China deal," Trump said, according to a pool reporter's account. Stock futures ES00, -0.33% dropped, with Dow industrials futures YM00, -0.41% losing 118 points.

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2019-12-03 10:32:00Z
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Huawei plans to shift research center from US to Canada, founder Ren Zhengfei says - CNBC

The Huawei logo is seen on the side of the main building at the company's production campus on April 25, 2019 in Dongguan, near Shenzhen, China.

Kevin Frayer | Getty Images News | Getty Images

Huawei Technologies plans to shift its research center to Canada from the United States, Ren Zhengfei, the founder of the Chinese telecoms equipment maker, said in an interview with Canada's Globe and Mail.

Ren's remarks came as Reuters reported on Friday that the U.S. is weighing expanding its power to stop more foreign shipments of products with U.S. technology to Huawei. The U.S. Commerce Department in May placed Huawei on a trade blacklist, citing national security concerns.

Huawei's "center for research and development will be moved out of the U.S. And that will be relocated to Canada," Ren told the Globe and Mail, adding that the company will also manufacture some mobile network equipment outside China.

The Huawei founder wants to build new factory capacity in Europe to make fifth-generation (5G) networking equipment there, hoping to assuage fears stemming from U.S. allegations that its product could be used by China for spying, the Globe and Mail reported.

Huawei was not immediately available to comment on Ren's interview when contacted by Reuters. The firm has previously denied it is a risk to U.S. national security.

The company spent $510 million on the operations of its U.S. research arm last year, according to the Globe and Mail report, which added that it has now trimmed the arm's work force by 600 to about 250.

Separately, Ren's daughter and Huawei Chief Financial Officer Meng Wanzhou, who was arrested by Canadian police on a U.S. warrant late last year, is fighting extradition to the U.S. on charges of violating sanctions against Iran. She is currently out on bail.

Huawei has denied the charges and China has urged Canada to release her.

Commenting on her case, Ren said that it is an example of "obvious political interference from the U.S."

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2019-12-03 06:06:00Z
CAIiEEy0K76zFSQkSCBl0IHT4QsqGQgEKhAIACoHCAow2Nb3CjDivdcCMP3ungY

Cyber Monday sets record with $9.2B in online sales - Fox Business

Shoppers let their fingers fly across the keyboard to set a record for Cyber Monday sales.

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Preliminary data from Adobe projected sales of $9.2 billion by the end of Monday and remains the largest online shopping day in the U.S, growing 16.9 percent year-over-year as of 7:00 p.m. ET.

Women wearing red sweater shopping online and using credit card at home office

There is more to come as shoppers hit the “golden hours of retail”, which are the 4 hours between 10:00 p.m. and 2:00 a.m. ET, will drive 30 percent of all Cyber Monday revenue at $2.8 billion, as shoppers hit buy before deals run out.

During the peak hour of 11:00 p.m. ET- 12 a.m. ET, consumers will be spending $11 million on average every minute.

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Smartphones were the device of choice hitting a new record, accounting for 33 percent of Cyber Monday sales at $3.0 billion, which represents 46 percent growth year-over-year.

“Retailers unlocked sales earlier to combat a shorter shopping season, while continuing to drive up promotion of the big branded days including Black Friday and Cyber Monday," said John Copeland, head of Marketing and Consumer Insights at Adobe. "Consumers capitalized on deals and ramped up spending, especially on smartphones, where activity increased on days when shoppers were snowed or rained in.”

Top sellers on Cyber Monday include Frozen 2 Toys, L.O.L Surprise Dolls, NERF products, Madden 20, Nintendo Switch, Jedi Fallen Order, Samsung TVs, Fire TV, Airpods and Air Fryers.

Other highlights include:

Cyber Monday had the best deals for televisions with average savings above 19 percent.

Shoppers that participated most in Black Friday online sales came from New Jersey, Connecticut, and Oklahoma.  Due to unusually high rainfall and snow, some consumers have opted to stay indoors and finish their shopping online.

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The holiday shopping season, from Nov. 1 through Dec. 1,  has generated $72.1 billion online to date, at 16.3 percent growth year-over-year, topping Adobe’s forecast of 14.1 percent.

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2019-12-03 04:33:10Z
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