FILE PHOTO – A pedestrian holding a mobile phone walks past a logo of SoftBank Corp in front of its branch in Tokyo December 31, 2013. REUTERS/Yuya Shino
TOKYO (Reuters) – SoftBank Group Corp plans to replace 4G network equipment from China’s Huawei Technologies Co Ltd with hardware from Nokia and Ericsson, Nikkei reported on Thursday, without citing sources.
SoftBank will also order equipment from the two European suppliers instead of Huawei for its next-generation 5G network, Nikkei reported.
The move comes at a time of heightened scrutiny of Chinese tech firms by Washington and some prominent allies over ties to the Chinese government, driven by concerns they could be used by Beijing for spying.
U.S. President Donald Trump sits for an exclusive interview with Reuters journalists in the Oval Office at the White House in Washington, U.S. December 11, 2018. REUTERS/Jonathan Ernst
WASHINGTON (Reuters) – U.S. President Donald Trump said on Tuesday he would intervene in the Justice Department’s case against a top executive at China’s Huawei Technologies [HWT.UL] if it would serve national security interests or help close a trade deal with China.
Huawei’s Chief Financial Officer Meng Wanzhou was arrested in Canada Dec. 1 and has been accused by the United States of misleading multinational banks about Iran-linked transactions, putting the banks at risk of violating U.S. sanctions.
When asked if he would intervene with the Justice Department in her case, Trump said in an interview with Reuters: “Whatever’s good for this country, I would do.”
“If I think it’s good for what will be certainly the largest trade deal ever made – which is a very important thing – what’s good for national security – I would certainly intervene if I thought it was necessary,” Trump said.
A Canadian court on Tuesday granted Meng bail while she awaits a hearing for extradition to the United States, a move that could help placate Chinese officials angered by her arrest.
Trump also said the White House has spoken with the Justice Department about the case, as well as Chinese officials.
“They have not called me yet. They are talking to my people. But they have not called me yet,” he said when asked if he has spoken to Chinese President Xi Jinping about the case.
Reporting by Jeff Mason and Steve Holland; Editing by Bill Rigby
Slack hired investment bank Goldman Sachs as the lead underwriter for its highly anticipated initial public offering, Reuters reported Friday.
Slack is talking with investment banks to help underwrite an IPO, which could end up valuing the chat and workplace-collaboration software maker as high as $10 billion, Reuters said, citing unnamed sources.
In August, Slack raised $427 million in a private round of financing led by General Atlantic and Dragoneer. At the time, the investment valued the company at more than $7 billion. The company has raised a total of $1.2 billion in seven funding rounds since 2010, according to Crunchbase, which tracks financing rounds of private companies.
Last month, Stewart Butterfield, Slack’s co-founder and CEO, told Fortune that the company had “no specific timeline for an IPO,” although he also said that “We’ve been on a path to public company readiness for several years now and we’re continuing on that path.”
Slack offers a popular work-collaboration platform that allows co-workers to chat and message each other. The nine-year-old company now has more than 8 million active users, although Butterfield said in the Fortune interview that the actual number could be well above that.
The market for technology IPOs had been sluggish for several years before picking up somewhat in 2018. So far in 2018, 188 companies have gone public on U.S. exchanges, up from 160 in all of 2017. Around 40 of the IPOs this year were tech startups, including Sonos, Dropbox, and SurveyMonkey.
2019 is expected to bring bigger names to the IPO market, not just Slack, but also Uber, Lyft, and Airbnb. On Thursday, Lyft confidentially filed paperwork with the Securities and Exchange Commission for its planned IPO.
VANCOUVER/LONDON (Reuters) – Huawei Technologies Co Ltd’s chief financial officer faces U.S. accusations that she covered up her company’s links to a firm that tried to sell equipment to Iran despite sanctions, a Canadian prosecutor said on Friday, arguing against giving her bail while she awaits extradition.
The case against Meng Wanzhou, who is also the daughter of the founder of Huawei, stems from a 2013 Reuters report here about the company’s close ties to Hong Kong-based Skycom Tech Co Ltd, which attempted to sell U.S. equipment to Iran despite U.S. and European Union bans, the prosecutor told a Vancouver court.
U.S. prosecutors argue that Meng was not truthful to banks who asked her about links between the two firms, the court heard on Friday. If extradited to the United States, Meng would face charges of conspiracy to defraud multiple financial institutions, the court heard, with a maximum sentence of 30 years for each charge.
Meng, 46, was arrested in Canada on Dec. 1 at the request of the United States. The arrest was on the same day that U.S. President Donald Trump met in Argentina with China’s Xi Jinping to look for ways to resolve an escalating trade war between the world’s two largest economies.
The news of her arrest has roiled stock markets and drawn condemnation from Chinese authorities, although Trump and his top economic advisers have downplayed its importance to trade talks after the two leaders agreed to a truce.
A spokesman for Huawei had no immediate comment on the case against Meng on Friday. The company has said it complies with all applicable export control and sanctions laws and other regulations.
Friday’s court hearing is intended to decide on whether Meng can post bail or if she is a flight risk and should be kept in detention.
The prosecutor opposed bail, arguing that Meng was a high flight risk with few ties to Vancouver and that her family’s wealth would mean than even a multi-million-dollar surety would not weigh heavily should she breach conditions.
Meng’s lawyer, David Martin, said her prominence made it unlikely she would breach any court orders.
“You can trust her,” he said. Fleeing “would humiliate and embarrass her father, whom she loves,” he argued.
Huawei CFO Meng Wanzhou, who was arrested on an extradition warrant, appears at her B.C. Supreme Court bail hearing in a drawing in Vancouver, British Columbia, Canada December 7, 2018. REUTERS/Jane Wolsak
The United States has 60 days to make a formal extradition request, which a Canadian judge will weigh to determine whether the case against Meng is strong enough. Then it is up to Canada’s justice minister to decide whether to extradite her.
Chinese Foreign ministry spokesman Geng Shuang said on Friday that neither Canada nor the United States had provided China any evidence that Meng had broken any law in those two countries, and reiterated Beijing’s demand that she be released.
Chinese state media accused the United States of trying to “stifle” Huawei and curb its global expansion.
The U.S. case against Meng involves Skycom, which had an office in Tehran and which Huawei has described as one of its “major local partners” in Iran.
In January 2013, Reuters reported that Skycom, which tried to sell embargoed Hewlett-Packard computer equipment to Iran’s largest mobile-phone operator, had much closer ties to Huawei and Meng than previously known.
Slideshow (9 Images)
In 2007, a management company controlled by Huawei’s parent company held all of Skycom’s shares. At the time, Meng served as the management firm’s company secretary. Meng also served on Skycom’s board between February 2008 and April 2009, according to Skycom records filed with Hong Kong’s Companies Registry.
Huawei used Skycom’s Tehran office to provide mobile network equipment to several major telecommunications companies in Iran, people familiar with the company’s operations have said. Two of the sources said that technically Skycom was controlled by Iranians to comply with local law but that it effectively was run by Huawei.
Huawei and Skycom were “the same,” a former Huawei employee who worked in Iran said on Friday.
A Huawei spokesman told Reuters in 2013: “Huawei has established a trade compliance system which is in line with industry best practices and our business in Iran is in full compliance with all applicable laws and regulations including those of the U.N. We also require our partners, such as Skycom, to make the same commitments.”
The United States has been looking since at least 2016 into whether Huawei violated U.S. sanctions against Iran, Reuters reported in April.
The case against Meng revolves around her response to banks, who asked her about Huawei’s links to Skycom in the wake of the 2013 Reuters report. U.S. prosecutors argue that Meng fraudulently said there was no link, the court heard on Friday.
U.S. investigators believe the misrepresentations induced the banks to provide services to Huawei despite the fact they were operating in sanctioned countries, Canadian court documents released on Friday showed.
The hearing did not name any banks, but sources told Reuters this week that the probe centered on whether Huawei had used HSBC Holdings (HSBA.L) to conduct illegal transactions. HSBC is not under investigation.
U.S. intelligence agencies have also alleged that Huawei is linked to China’s government and its equipment could contain “backdoors” for use by government spies. No evidence has been produced publicly and the firm has repeatedly denied the claims.
The probe of Huawei is similar to one that threatened the survival of China’s ZTE Corp (0763.HK) (000063.SZ), which pleaded guilty in 2017 to violating U.S. laws that restrict the sale of American-made technology to Iran. ZTE paid a $892 million penalty.
Reporting by Julie Gordon in Vancouver and Steve Stecklow in London; Additional reporting by Anna Mehler Paperny in Toronto, David Ljunggren in Ottawa, Karen Freifeld in New York, Ben Blanchard and Yilei Sun in Beijing, and Sijia Jiang in Hong Kong; Writing by Denny Thomas and Rosalba O’Brien; Editing by Muralikumar Anantharaman, Susan Thomas and Sonya Hepinstall
Not to worry, Yahoo, you still had the largest data breach in corporate history, at 3 billion records. But at 500 million, Marriott is a strong second, and maybe should be first.
That’s because of the nature of the data that went out the door for about 327 million of the people who had stayed at a Starwood property on or before September 10, 2018. (And starting in 2014, because that’s how long it’s been since someone first broke into the system.)
The data included some combination of name, mailing address, phone number, email address, Starwood Preferred Guest (“SPG”) account information, birth date, gender, arrival and departure information, reservation date, communication preferences, and passport number.
Passport number? Yup. They kept them on file. And an undisclosed number of encrypted payment card numbers, expirations dates, and maybe–Marriott’s really not quite sure–enough information to let someone crack the encryption.
Yes, this is really, really bad.
Oh, and TechCrunch also noted the the claim that Russian cybercriminals got into the Starwood servers. It can’t keep getting worse, right?
You know the answer.
Marriott’s promised email notifications to affected customers will come from a fake-ish looking email address, as TechCrunch noted, and one that could be easily spoofed by people who want to cause even more damage. In other words, beware of phishing hacks that stand on the back of Marriott’s efforts to address the terrible position it’s put so many customers into.
And now we come around to the latest insanity. As part of its response, Marriott set up a website that ultimately points you to a third party service that “monitors internet sites where personal information is shared and generates an alert to the consumer if evidence of the consumer’s personal information is found.”
The third party running the service, corporate investigations and risk management firm Kroll, of course is going to need information from you to see if it pops up on the dark web. Here is what they might want, directly from their website:
name, address, phone number, and e-mail address
date of birth, driver’s license number, social security number, passport number, and other similar information
copies of government-issued photo identification, Social Security card and/or utility bill(s), where applicable
credit card number and other financial account data, including your consumer credit file(s), as applicable
your responses to security questions; the information you provide in customer service correspondence; and general feedback
You’re going to have to cough up enough information to see if they can match it to anything on the dark web. You’ll have to trust that everything will be fine. Which is what you did with Marriott in the first place.
Fat lot of good that did almost half the country.
How does this keep happening? As I explained in a piece over at Vice Motherboard, it all comes down to economics. The ultimate penalties big companies pay are so infrequent and small in comparison to their revenues that it becomes something just as easy to ignore. The millions of dollars you may hear about as the cost of a data breach is significantly smaller than a rounding error in accounting to them.
Not that I’m suggesting Marriott is ignoring this. Just a comment on the general treatment of customer data security by large corporations.
The only hope is that government officials take enough heat from voters that they put significant fiscal punishment into place. I’d settle, at least in this case, for Marriott to pay the cost for all the people who might now need to obtain a new passport. That at least would be a start.
But there’s the other factor: consolidation. Marriott is the largest hotel operator in the world. If you’re traveling, there’s a good chance you’ll land in one of its properties. Unless, of course, you remember all this nonsense and intentionally stay elsewhere.
Even if you don’t get more points, you might at least keep your data secure.
(Reuters) – U.S. chipmaker Qualcomm Inc (QCOM.O) said on Monday it was not looking to revive its abandoned $44 billion acquisition of Dutch peer NXP Semiconductors NV (NXPI.O), a day after the White House said China would reconsider clearing a deal if it was attempted again.
Qualcomm, the world’s biggest smartphone-chip maker, walked away from its agreement to buy NXP in July, after failing to secure Chinese regulatory approval. The planned deal was first agreed between the two companies in October 2016.
Qualcomm, headquartered in San Diego, California, and NXP, based in Eindhoven, the Netherlands, needed China’s blessing for their deal because of their presence in that country.
After high-stakes talks on Saturday between U.S. President Donald Trump and Chinese President Xi Jinping in Argentina, the White House said in a statement that China was “open to approving the previously unapproved” deal for Qualcomm to acquire NXP “should it again be presented”.
But Qualcomm said there was no prospect for the acquisition to be revived.
“While we were grateful to learn of President Trump and President Xi’s comments about Qualcomm’s previously proposed acquisition of NXP, the deadline for that transaction has expired, which terminated the contemplated deal,” a Qualcomm representative said via email.
“Qualcomm considers the matter closed.”
NXP declined to comment.
On Monday, White House economic adviser Larry Kudlow told reporters that President Trump put the issue of the acquisition on the table in the talks with the Chinese president.
Kudlow added that the Chinese president’s openness to the deal was a sign of further cooperation on multiple issues, including corporate mergers. Xi’s reported comment could embolden some potential acquirers in the semiconductor space to explore transactions, corporate dealmakers said.
“Although that acquisition cannot be resuscitated, Xi’s comment reveals in plain sight that Chinese antitrust policy is inherently politicized,” said Scott Kennedy, a China expert at the Center for Strategic and International Studies in a blog post.
FILE PHOTO: A sign on the Qualcomm campus is seen, as chip maker Broadcom Ltd announced an unsolicited bid to buy peer Qualcomm Inc for $103 billion, in San Diego, California, U.S. November 6, 2017. REUTERS/Mike Blake
Qualcomm shares closed up 1.5 percent at $59.14 in New York on Monday, while NXP shares ended up 2.75 percent at $85.67.
Qualcomm and NXP did not lobby for the Trump administration to bring up the abandoned deal in its meeting with Xi and other Chinese officials on the sidelines of the G20 summit in Buenos Aires on Saturday, which was dominated by negotiations over trade tariffs, according to sources close to the companies.
The two companies were surprised to see that the terminated deal resurfaced as an issue, the sources added, requesting anonymity to discuss confidential deliberations. Qualcomm was given just an hour’s notice by the Trump administration about Xi’s comment on the NXP deal, and its inclusion in the White House statement, according to two of the sources.
The Trump administration had unsuccessfully lobbied the Chinese government earlier this year to give its blessing to the deal.
China’s foreign ministry declined to comment on Qualcomm during a regular media briefing on Monday.
Qualcomm had sought to purchase NXP because of its market position as a dominant supplier to the automotive market, as car makers add more chips to vehicles each year. Qualcomm is now focused on developing its own chips for the automotive market, according to one of the sources.
Qualcomm had to pay NXP a $2 billion fee to terminate the deal. To appease its shareholders, Qualcomm has also embarked on a $30 billion stock repurchase plan to return to them most of the money that would have been used for the NXP deal. It has spent more than $20 billion in share buybacks in the last 12 months. NXP has also announced its own $5 billion share buyback program.
Several deals by semiconductor companies were put on ice after the Qualcomm/NXP deal fell through, simply because they had a footprint in China and required regulatory approval there. Now, chip companies may be more optimistic about their regulatory chances in China.
One example could be Xilinx Inc (XLNX.O), a U.S. provider of chips used in communications network gear and consumer electronics that has a big presence in China. Xilinx is currently vying to acquire Israeli chip maker Mellanox Technologies Ltd (MLNX.O) after it decided to run an auction to sell itself, according to people familiar with the matter. A successful acquisition of Mellanox could prove an important test of China’s appetite to approve such deals. A representative for Xilinx declined to comment. Mellanox did not immediately respond to requests for comment.
A more near-term test being watched by dealmakers is KLA-Tencor Corp (KLAC.O) pending acquisition of fellow semiconductor equipment maker, Israel’s Orbotech Ltd (ORBK.O). The $3.4 billion deal, announced in March, is still awaiting Chinese regulatory approval. KLA-Tencor’s CEO said on the company’s last earnings call that he expects the deal to close by year end.
Thus far, other high-profile mergers and acquisitions involving U.S. companies in other sectors have received Chinese approval. Last month, China approved United Technologies Corp’s (UTX.N) $30 billion purchase of aircraft parts maker Rockwell Collins Inc and Walt Disney Co’s (DIS.N) $71.3 billion deal to buy most of Twenty-First Century Fox’s (FOXA.O) entertainment assets.
Acquisitions of U.S. companies by Chinese companies, on the other hand, have been few and far between in the last year, after the Committee on Foreign Investment in the United States (CFIUS), a government panel that scrutinizes deals for potential national security risks, shot down more of these deals, such as Ant Financial’s plan to acquire U.S. money transfer company MoneyGram International Inc (MGI.O). U.S. lawmakers also passed reforms earlier this year that increased CFIUS’ scrutiny of deals.
Reporting by Liana B. Baker in New York and Kanishka Singh in Bengaluru; Aditional reporting by Greg Roumeliotis in New York, Michael Martina in Beijing and Jeff Mason in Washington, D.C.; editing by Diane Craft
Apple‘s famous wireless AirPods are a hot holiday ticket item, but you may want to hold off on buying them.
Top Apple analyst Ming-Chi Kuo of KGI Securities says Apple will release an “upgraded model with wireless charging support” in 2019’s first quarter, in a report obtained by 9 to 5 Mac. Kuo also stated that all-new designed AirPods would launch in early 2020.
Kuo believes more iPhone users will buy the AirPods and even skip on upgrading their phone, according to 9 to 5 Mac, which went on to describe more of the possible updates.
Kuo says the 2019 update will feature “wireless charging support.” In addition, the new AirPods case could have a “rigid-flex board” internal component upgrade, while the charging case’s hinge could also be “redesigned to support appearance changes and higher thermal requirements,” 9 to 5 Mac reported. The AirPods could even have Bluetooth spec updates and some internal components are likely to cost more.
In addition, it sounds like a wireless charging case could be sold as an add-on accessory for people who already have AirPods, while a slightly revised version of the product would include the case.
WASHINGTON (Reuters) – The United States on Wednesday indicted two Iranians for launching a major ransomware cyber attack known as “SamSam” and sanctioned two others for helping exchange the ransom payments from Bitcoin digital currency into rials.
The 34-month long hacking scheme wreaked havoc on hospitals, schools, companies and government agencies, including the cities of Atlanta, Georgia, and Newark, New Jersey, causing over $30 million in losses to victims and allowing the alleged hackers to collect over $6 million in ransom payments.
The deployment of the SamSam ransomware represented some of the most high-profile cyber attacks that have occurred on U.S. soil, including one in 2016 that forced Hollywood Presbyterian Hospital in Los Angeles to turn away patients and one last year that shut down Atlanta courts and much of its city government.
The six-count indictment, unsealed Wednesday in the U.S. District Court for the District of New Jersey, charges Iran-based Faramarz Shahi Savandi, 34, and Mohammad Mehdi Shah Mansouri, 27 with one count of conspiracy to commit wire fraud, one count of conspiracy to commit fraud related to computers, and other counts accusing them of intentionally damaging protected computers and illegally transmitting demands related to protected computers.
The Treasury Department, meanwhile, said it had sanctioned Ali Khorashadizadeh and Mohammad Ghorbaniyan for exchanging digital ransomware payments into rials.
Neither Khorashadizadeh nor Ghorbaniyan were named in the indictment, though the indictment appeared to reference their activities.
“The allegations in the indictment unsealed today—the first of its kind—outline an Iran-based international computer hacking and extortion scheme that engaged in 21st-century digital blackmail,” said Assistant Attorney General Brian Benczkowski, in announcing the criminal charges on Wednesday.
Reuters could not immediately locate the four Iranians named by the U.S. government, and it will likely be difficult to hold them accountable in a federal court because the United States does not have an extradition treaty with Iran.
However, Deputy Attorney General Rod Rosenstein told reporters at a press conference that he remains confident they might one day be brought to justice.
“These defendants are now fugitives from American justice,” Rosenstein said. “American justice has a long arm and we will wait and eventually, we are confident that we will take these perpetrators into custody.”
According to the Treasury, the SamSam ransomware scheme targeted more than 200 victims.
In addition to Atlanta and Newark, other victims cited by the Justice Department included healthcare companies such as Laboratory Corporation of American Holdings, the Colorado Department of Transportation, Medstar Health, the port of San Diego and the Nebraska Orthopedic Hospital.
Reporting by Sarah N. Lynch; Additional reporting by Lisa Lambert, Makini Brice and Timothy Ahmann in Washington, Jim Finkle in New York and Babak Dehghanpisheh in Geneva; Editing by Susan Thomas