Big Tech booms even as lockdown living wanes

SAN FRANCISCO, United States - Big Tech goliaths like Facebook and Amazon unveiled whopping profits this week, showing their dominance in lockdown lifestyles is on course to grow well beyond the pandemic.

"Tech wins the day, the week, and seemingly the year," Futurum Research analysts said of the surging revenues, driven by digital advertising, cloud computing, gaming and booming use of smartphones and e-commerce.

"The strength of tech is clearly untethered from Covid," they added.

Powerhouses Facebook, Apple, Microsoft and Google parent Alphabet all reported higher revenues even as they face heightened scrutiny from antitrust regulators for their growing dominance of key economic sectors.

Amazon said Thursday that second-quarter profit jumped 48 percent from a year ago to $7.8 billion, even if that showing was below high Wall Street forecasts.

A growing number of consumers turned to Amazon during the pandemic to get everything from tofu to toilet paper, and its cloud computing division also grew to help businesses and consumers stay connected.

The Amazon results capped a series of earnings from the major tech firms that benefited from successive lockdowns, but also the gradual lifting of restrictions.

Earlier in the week, Apple said its profit in the just-ended quarter nearly doubled amid improving consumer spending and a "growing sense of optimism" as pandemic lockdowns eased.

Revenue from iPhone sales jumped some 50 percent and Apple posted increases for its services such as digital payments, music, streaming television and gaming.

Facebook reported its profit doubled in the recently ended quarter as digital advertising surged, but warned of cooler growth in the months ahead in an update which sent its shares sinking.

Google parent Alphabet reported quarterly profit that had nearly tripled, as money poured in from ads on its search engine and YouTube video platform.

'Not going away'

Revenue at the global video-sharing platform topped $7 billion, a leap from the $3.8 billion brought in during the same period a year earlier, according to Alphabet.

Techsponential analyst Avi Greengart told AFP that hybrid work, online entertainment and internet shopping are now facts of life.

"Those are overarching trends that got accelerated by the pandemic but aren't going away," he added.

However, a gradual resumption of in-person activities will require adjustments from Big Tech.

Amazon chief financial officer Brian Olsavsky said on an earnings call that a reason for missing revenue expectations appeared to be vaccines giving people the confidence to leave home.

"Not only shopping offline but also living life and getting out," Olsavsky said. "It takes away from shopping time. It's a good phenomenon and it's great."

Regulators' wary gaze

Alphabet chief executive Sundar Pichai credited long-term investments in artificial intelligence and cloud computing as powering the internet giant's performance.

Google's cloud computing business competes with powerhouses Amazon and Microsoft, poising them to vie for virtual terrain in an immersive online world.

Microsoft this week reported a jump in profits in the recently ended quarter, keeping strong momentum from accelerated gains in cloud computing during the pandemic.

Transition to relying on computing power and services in the internet cloud as well as working remotely are likely to last, playing to the strength of tech giants powering such platforms, according to Wedbush Securities analyst Dan Ives.

However, a global chip shortage has hobbled production of the wide range of devices enhanced with computing and internet capabilities, from cars to video game consoles.

And, as US tech titans gain clout and wealth, they are increasingly in the crosshairs of government regulators wary of monopolistic abuses and sidestepped taxes.

Despite political pressure, the tech companies continue to spend on bolstering and expanding their offerings.

Amazon made a deal early this year to buy iconic Hollywood studio Metro-Goldwyn-Mayer for $8.45 billion in a move aimed at strengthening its Amazon Prime television streaming service.

Apple is working on self-driving car technology, while Alphabet is already testing a "robo-taxi" service in the United States with its Waymo unit.

Agence France-Presse

Thailand warns COVID-19 surge pushing hospitals to the brink

Hospitals in Thailand's capital Bangkok and surrounding province are running out of beds due to a jump in COVID-19 patients, a health official said on Thursday, as the country reported a record number of infections for the fourth time this week.

Thailand has in the last few months been struggling with its worst outbreak since the start of the pandemic, driven by the highly contagious Delta variant, first detected in India.

The country's COVID-19 task force reported on Thursday 17,669 coronavirus cases and 165 deaths, both record highs, while it said 21 of the fatalities died at home.

"We don't know where to put the sick people anymore, the ER (emergency room) units in many hospitals have to be temporarily closed because they no longer have bed spaces," Somsak Akksilp, head of the Department of Medical Services, told a news conference.

In Bangkok and nearby provinces, more than 1,200 people were waiting for hospital beds and over 6,000 called a hotline over the past week requesting treatment, health authorities said.

There are more than 37,000 hospital beds in Bangkok, according to the Bangkok Metropolitan Administration.

Earlier in the pandemic, all COVID-19 patients were admitted to hospitals, but Somsak said authorities last month brought in home isolation for more than 30,000 people in Bangkok and surrounding provinces. The government has also been converting public places in Bangkok into temporary field hospitals for COVID-19 patients as the spike in cases strains the city's health system.

The jump in infections has increased pressure on the government to boost the sluggish pace of vaccinations, with only 5.6% of Thailand's more than 66 million people fully vaccinated.

Thailand won plaudits for containing the coronavirus for most of last year, but authorities have struggled to halt the wave of cases starting in April that has taken total infections to 561,030, with 4,562 fatalities.

-reuters

Simone Biles pulls out of Olympic all-around title defense

TOKYO, Japan -- Simone Biles abandoned the defense of her individual all-around Olympic crown on Wednesday, a day after her shock withdrawal from the women's team final over mental health concerns. 

As a worldwide outpouring of support for the troubled US gymnastics superstar grew, a statement from USA Gymnastics confirmed that Biles would not take part in Thursday's all-around final.

The 24-year-old 2016 Olympic all-around gold medallist's participation in the four individual event finals starting on Sunday will be decided after further evaluation, USAG said.

"Simone Biles has withdrawn from the final individual all-around competition at the Tokyo Olympic Games in order to focus on her mental health," USAG said in a statement.

"Simone will continue to be evaluated daily to determine whether or not to participate in next week's individual event finals.

"We wholeheartedly support Simone's decision and applaud her bravery in prioritising her well-being. Her courage shows, yet again, why she is a role model for so many."

The decision marks a stunning turn of events for Biles, who had been widely expected to crown the greatest career in gymnastics history with another multiple haul of gold medals in Tokyo.

The diminutive Texan, winner of four gold medals at the 2016 Rio Olympics, was vying for a potential six golds in Japan.

- Game-changing moment -

However her campaign unraveled on Tuesday when she suddenly withdrew from the team final after an uncharacteristically shaky display on the opening vault. Biles later said she had pulled out of the final out of concern for her mental well-being.

"I have to focus on my mental health," Biles said. "I didn't want to go out and do something stupid and get hurt... At the end of the day we don't want to be carried out of there on a stretcher."

Biles' decision has been hailed as a game-changing moment for elite sport, helping to dispel enduring stigmas surrounding mental health.

Biles told US Olympic broadcaster NBC television late Tuesday she would assess her readiness to compete on a "day-by-day" basis.

"Physically, I feel good, I'm in shape," she said on NBC television's Today program. "We're going to take it day by day, and we're just gonna see." 

As Biles reflected on her shattered Olympic dreams, she drew broad support from athletes, officials and public figures.

"Simone, you've made us so proud. Proud of who you are as a person, teammate and athlete," said Sarah Hirshland, US Olympic and Paralympic Committee chief executive officer.

"We applaud your decision to prioritize your mental wellness over all else and offer you the full support and resources of our Team USA community as you navigate the journey ahead."

- Obama support, Phelps concern -

Former US first lady Michelle Obama tweeted: "Am I good enough? Yes, I am. The mantra I practice daily. @Simone_Biles , we are proud of you and we are rooting for you."

Two-time Olympic Alpine ski champion Mikaela Shiffrin offered support as well, tweeting: "@Simone_Biles keep whipping out that smile of yours cause it is undeniably golden. Always."

US swimming and Olympic legend Michael Phelps, who in 2018 revealed his own struggles with depression and suicidal thoughts following the 2012 Olympics, said watching Biles struggle on Tuesday "broke my heart."

Phelps told NBC the Olympics could be overwhelming for athletes, and that he had often struggled to find support during his own career.

"The biggest thing is we all need to ask for help sometimes too when we go through those times," Phelps said. "For me, I can say personally it was something very challenging. It was hard for me to ask for help."

Biles's former USA teammate Aly Raisman spoke of her concerns for her friend's wellbeing.

"I know that all of these athletes dream of this moment for their whole entire lives, and so I'm just completely devastated," Raisman told NBC. 

"I am obviously so worried and just hoping that Simone is OK."

Raisman and Biles were among the gymnasts abused by former US team doctor Larry Nassar, who was jailed in 2018 for sexual abuse.

"It's just so much pressure, and I've been watching how much pressure has been on her in the months leading up to the Games, and it's just devastating. I feel horrible," Raisman added.

Agence France-Presse

Malaysian doctors stage walkout amid worsening COVID-19 outbreak

Hundreds of junior doctors at state-run Malaysian hospitals staged walkouts Monday demanding better conditions as the country faces its worst coronavirus outbreak yet. 

Dressed in black and holding signs with slogans including "equal pay, equal rights, equal opportunity" and "we are your future specialists", they protested at medical facilities nationwide. 

The doctors are on contracts for a set period and say their treatment is worse than that of permanent government staff, even as they have found themselves on the frontline of the fight against Covid-19.

They complain of a lack of job security, poor benefits and that very few are eventually offered permanent positions.

We want "equal rights, to be a permanent doctor," said a medic at a government hospital that treats virus patients outside Kuala Lumpur. 

"We would definitely not be here if we were treated fairly... we should be appreciated for what we do," the doctor, who spoke on condition of anonymity, told reporters.

The medic was among dozens who took part in the action at the hospital, which lasted around half an hour. 

Local media reported that several hundred participated across the country, but some doctors complained they were threatened by police and senior hospital staff in a bid to halt the protests.

Those involved said senior doctors took over their duties before they walked out, to ensure that patient care was not jeopardized. 

Malaysia is currently battling its most serious outbreak, driven by the highly contagious Delta variant. Officials have reported over one million cases and about 8,000 deaths.

There are over 23,000 doctors on these contracts in Malaysia -- about 45 percent of the total medical doctors in the public healthcare system, according to official estimates.

Last week, the government said it would extend junior doctors' contracts for up to four years in a bid to forestall the protests. 

But they stopped short of offering permanent jobs, and the organizers of Monday's walkout criticized the move as "short-sighted".

Agence France-Presse

South Korea steps up COVID-19 curbs ahead of peak holiday season

SEOUL - South Korea said on Sunday it will tighten social distancing rules across most of the country this week, warning that its worst-ever COVID-19 wave might spread further in the summer holiday season.

The curbs will be increased to Level 3 on a four-level scale, which will mean a 10 p.m. dining curfew and ban on gatherings of more than four people, from Tuesday for two weeks for most areas except for some small counties.

"What's most concerning is the virus' recent spread in the non-capital areas," President Moon Jae-in told an intra-agency meeting reviewing efforts in the campaign against the coronavirus.

"There has been an increase in movements nationwide, especially around vacation spots."

South Korea managed to largely avoid major COVID-19 outbreaks with an extensive testing and tracing campaign for the first year of the pandemic.

But the latest spikes in infections have dented public confidence even though there have been relatively few critical cases and deaths.

The government early this month imposed the toughest Level 4 curbs, which include a ban on gatherings of more than two people after 6 p.m., in the capital Seoul and neighbouring areas.

The Korea Disease Control and Prevention Agency on Sunday reported 1,487 cases for Saturday, the highest increase recorded on any weekend.

South Korea's total infections have risen to 188,848, with 2,073 deaths. (Reporting by Hyonhee Shin Editing by Robert Birsel)

-reuters

Can Facebook's $1 billion gamble help it regain lost cool?

Like internet personalities the world over, Kenyan TikTok comedian Mark Mwas was intrigued when Facebook announced a $1 billion plan to pay content creators like him. 

But the 25-year-old, whose following surged past 160,000 as entertainment-starved Kenyans flocked to the app during the pandemic, is sceptical that fans would follow him to the older social network. 

"In our market, Facebook is kinda old-fashioned," said Mwas, who posts skits about campus life in a mixture of Swahili, English, and Sheng slang. 

"Like, Mom is on Facebook and doesn't know what TikTok is," he told AFP in an email. "My content is suited for the millennials, who prefer other platforms." 

Announced last week, Facebook's $1 billion will pay the creators of popular posts, from fashionistas to comedians and video gamers, through 2022.

It is the strongest signal yet that the US social media giant now recognises the strategic importance of the "creator economy". 

YouTube, TikTok and Snapchat have waged an increasingly fierce battle to attract figures with big followings that can in turn attract serious advertising revenues. 

Last November, photo and video app Snapchat began paying $1 million a day to top creators, although the payments have since tapered off. Popular YouTubers have been receiving a slice of the site's billions in ad revenues since 2007. 

Facebook has been comparatively slow on the uptake. While the site began paying popular video-makers in 2017, most vloggers have found YouTube to be far more lucrative. 

Facebook-owned Instagram has meanwhile launched the careers of many a food blogger and fashion influencer, but the app only began sharing its advertising income directly with them last year.

Traditionally, the bulk of Insta-celebrities' earnings has come through product endorsement deals negotiated directly with brands. 

- Late to the influencer party - 

Joe Gagliese, co-founder of international influencer agency Viral Nation, said it was not surprising that Facebook's efforts had lagged behind competitors'.

Founded in 2004, Facebook had already built a hugely lucrative advertising business by the time the phenomenon of full-time internet celebrities emerged at the end of the decade. Courting influencers wasn't crucial to its "primary business", Gagliese said. 

But as creators have headed elsewhere, their predominantly young followings have followed -- contributing to a sense that Facebook, in the eyes of Gen Z, has become an irredeemably uncool website where their parents hang out. 

Facebook's user base is indeed ageing. The proportion of over-65s has shot up roughly a quarter over the past year -- almost double the average, according to the Digital 2021 report from media companies We Are Social and Hootsuite. 

In the meantime, Chinese-owned TikTok was the world's most downloaded app in the first half of 2021.

It has largely replaced Facebook as the driver of international social media crazes -- not least during the pandemic, as bored millions have turned to its dance videos and cooking trends for light relief. 

In this context, Facebook's $1 billion gambit is being seen partly as an attempt to regain cultural relevance and stem the youth exodus. 

"The only way for these platforms to keep their relevance with younger generations is to understand what resonates with them and keep up with the pace of innovation," said Claudia Cameron, head of marketing and insights at Amsterdam-based influencer agency IMA.

"Creators are a very important part of this equation, as they set the tone for what's cool."

- A drop in the ocean? - 

While young users from Iran to Brazil have been flocking elsewhere, industry insiders say it is far too early to regard Facebook as doomed. 

"You can't underestimate them, because they are so powerful when it comes to the tech," said Gagliese. 

Facebook's vast income -- it raked in $84.2 billion in advertising revenues last year, more than the GDP of some countries -- gives it huge funds with which to innovate. 

It is also, despite its relative loss of street cred, still growing, with 2.8 billion monthly users worldwide. 

Gagliese suggested Facebook should be spending far more on its efforts to lure internet stars from other platforms. 

"Unless Facebook leans in really hard -- I'm talking, 'way more than a billion dollars' hard -- it's going to be very hard for them to attract all these new creators," he said. 

Facebook has yet to outline detailed plans for the $1 billion, but Cameron pointed out that a large chunk will likely be distributed via Instagram, which still enjoys a "cool" factor.

That would be good news for TikTok comedian Mwas, who also has a sizeable following there. 

"I'm taking a wait-and-see approach," he said.

Agence France-Presse

Social audio app Clubhouse is no longer invite-only

Live audio app Clubhouse has removed its invite system so that anyone can join the platform, it said on Wednesday.

The social app, which saw explosive early growth during the COVID-19 pandemic, previously required people to be invited by an existing user or request to join a waitlist. It said in a blog post that it had always planned to open up the app but that invites had been a way of tempering user numbers.

Clubhouse faces new competition from social media companies, including Facebook, Twitter, as well as streaming company Spotify, which have launched similar audio chat services.

"We know there will be many more ups and downs as we scale, and competition from the large networks will be fierce," the company wrote in its post.

Clubhouse said it had added 10 million people since launching on Android in May. Estimates from analytics firm Sensor Tower found the app had reached about 7.8 million global installs in June, up from 3.7 million the previous month.

The company, which said its team had expanded since January from 8 to 58 people, launched a direct messaging feature last week.

-reuters

Muslims perform Tawaf during annual Haj

Muslim pilgrims, keeping social distance and wearing face masks, perform Tawaf during the annual Haj pilgrimage, in the holy city of Mecca, Saudi Arabia on Tuesday. A limited number of mask-wearing pilgrims performed the “Tawaf,” a ritual involving walking around the Kaaba seven times in prayers, as Saudi Arabia banned entry of worshippers abroad and only allowed 60,000 pilgrims to participate in the Haj.

-reuters

Tencent to buy British video game company Sumo in $1.3 billion deal

Chinese tech giant Tencent Holdings will buy video game company Sumo Group in a deal that values the British firm at 919 million pounds ($1.27 billion), the companies said on Monday.

Sumo's shareholders will get 513 pence in cash per share, Tencent said. The offer is at 43 percent premium to the Sumo's last closing price of 358 pence. The share has risen multifold since its listing on LSE's junior market AIM in 2017 at 100 pence.

Tencent has an 8.75 percent stake and is the second-biggest stakeholder in the company, which has 14 studios in five countries with more than 1,200 employees.

"The Board of Sumo firmly believes the business will benefit from Tencent's broad videogaming eco-system, proven industry expertise and its strategic resources," Sumo's non-executive chairman Ian Livingstone said.

-reuters

Stocks sag on concerns about Covid, global growth

NEW YORK -- Global stocks mostly fell Friday as worries about rising Covid-19 cases and their effect on global growth weighed on sentiment, pushing Wall Street into the red for the week.

After data showed an unexpected rise in US retail sales, Wall Street pushed higher at the open. But markets soon tumbled into the red and losses grew as the day progressed.

Analysts pointed to profit taking as a factor in Friday's session and throughout the week following records earlier in the month. 

Investors are "continuing to trim winning positions" as they await more clarity on the course of the economy, said Briefing.com analyst Patrick O'Hare.

The broad-based S&P 500 ended down 0.8 percent at 4,327.16, taking its weekly losses to around one percent.

The highly-contagious Delta variant has led to surging infection rates in many parts of the world, leading authorities to reimpose certain restrictions.

"Covid-19 concerns still linger and the economic outlook is not as bright as it was just a few weeks ago," said market analyst Edward Moya at trading platform Oanda.

Major European bourses retreated, along with Tokyo, which closed one percent lower as investors worried over rising Covid-19 infections and the Bank of Japan trimmed its economic growth forecast for the current fiscal year.

Hong Kong's leading index was flat as late profit-taking wiped out earlier gains ahead of a US warning about doing business in the territory.

In a long-awaited advisory that has already been denounced by China, the United States warned its business community of "growing risks" of operating in Hong Kong due to China's clampdown.

The advisory acknowledged that Hong Kong, a former British colony handed back to China in 1997, "retains many economic distinctions" from the mainland, including stronger protections of intellectual property.

But Washington pointed to a declining climate under a national security law enacted last year, including the arrest of one US citizen -- John Clancey, a prominent human rights lawyer.

Shanghai closed 0.7 percent lower while Seoul, Taipei, Kuala Lumpur and Bangkok also retreated. Wellington was flat while Sydney, Singapore, and Jakarta ticked higher.

- Key figures around 2030 GMT -

New York - Dow: DOWN 0.9 percent at 34,687.85 (close)

New York - S&P 500: DOWN 0.8 percent at 4,327.16 (close)

New York - Nasdaq: DOWN 0.8 percent at 14,427.24 (close)

London - FTSE 100: DOWN less than 0.1 percent at 7,008.09 (close)

Frankfurt - DAX 30: DOWN 0.6 percent at 15,540.31 (close)

Paris - CAC 40: DOWN 0.5 percent at 6,460.08 (close)

EURO STOXX 50: DOWN 0.5 percent at 4,035.77 (close)

Tokyo - Nikkei 225: DOWN 1.0 percent at 28,003.08 (close)

Hong Kong - Hang Seng Index: FLAT at 28,004.68 (close)

Shanghai - Composite: DOWN 0.7 percent at 3,539.30 (close)

Euro/dollar: DOWN at $1.1809 from $1.1812 at 2100 GMT Thursday

Pound/dollar: DOWN at $1.3765 from $1.3829

Euro/pound: UP at 85.77 from 85.42 pence

Dollar/yen: UP at 110.04 from 109.83 yen

Brent North Sea crude: UP 0.2 percent at $73.59 per barrel

West Texas Intermediate: UP 0.2 percent at $71.81 per barrel

Agence France-Presse