Amazon’s commitment to a “Covid-free network” deserves to be taken seriously. Repeat testing, virus-killing robots (for warehouses, stores etc) and AI to enforce social distancing have given the ecommerce giant a critical edge. With its strength in cloud computing, Amazon will be well placed to offer a suite of services to other companies. Amazon again outperformed the S&P 500 last week, with its share price rising 1.3%, extending the gain since the start of this year to 30.4%.
Production cuts and the prospects of a modest recovery in demand are putting a floor under oil prices. But the longer term prospects for the industry remain blighted. The glass ceiling for electric vehicles – the limits on driving range – could be shattered by a new technology that allows EVs to recharge ‘on the fly’. Wireless recharging is the ‘holy grail’ that would shift the balance of power irrevocably, away from petrol/diesel/gasoline powered vehicles. Scientists at Stanford University have unveiled a wireless charging technology that “employs a magnetism to seamlessly charge EVs, drones and robots” during operation.
The Bureau of Industry and Security announced plans on Friday “to protect U.S. national security by restricting Huawei’s ability to use U.S. technology and software to design and manufacture its semiconductors abroad”.
How much this really disrupts Huawei is open to debate. The flagship smartphone Mate 30, “which is compatible with fifth-generation networks, and has been launched in several countries since the third quarter of last year,” now contains only 1% of American parts. Huawei has become self-sufficient since trade sanctions were first imposed.
The US will struggle to derail China’s ascendency.
Summary
• Bezos may matter more than Powell
• Wireless charging and Tesla threat to oil majors
• Huawei does not need Trump
