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The National
4 hours ago
- The National
What Kodak's woes can teach us about Big Tech, capitalism and brand resilience
, once among the most recognisable companies in the world, is blaming "misleading media reports" for causing concern after its second-quarter financial results. Although Kodak reported a gross profit of $51 million this week, the Rochester, New York-based company included a "concern assessment" that unnerved investors, employees and customers. The assessment warned various conditions "raise substantial doubt about the company's ability to continue". Kodak, which declared bankruptcy in 2012 and emerged in 2013, has tried to climb back to relevance amid a vastly changed photography, imaging and chemical market. It said reporters misinterpreted the company's disclosure. "Media reports that Kodak is ceasing operations, going out of business or filing for bankruptcy are inaccurate and reflect a fundamental misunderstanding of a recent technical disclosure the company made to the Security and Exchange Commission," read a statement posted to Kodak's LinkedIn page. Kurt Jaeckel, a senior communications director with Kodak, told The National that the warning "is essentially a required disclosure because Kodak's debt comes due within 12 months of the filing". Mr Jaeckel said the 133-year-old company is confident it will be able to pay its debts by using $300 million from "the reversion and settlement" of Kodak's pension fund. Yet Art Hogan, chief market strategist at B Riley Wealth in Boston, told The National that despite Kodak recently suggesting otherwise, the company's future is still very much in doubt. "Any time you ever hear a company say there are questions about continuing to be an ongoing entity, it's almost a known quantity, it's theta-complete," he said. Mr Hogan said that Kodak – which at its peak employed more than 140,000 workers, but now employs about 3,400 – is struggling to recover from its failure to adapt to digital photography, the decline of film and other market factors. Despite emerging from bankruptcy protection in 2013 and turning to commercial print, advanced materials and chemicals, the company's earnings and overall financial reality leave a lot to be desired. "When your debts and liabilities are going to be larger than the other side of your balance sheet, that's when you sort of turn the lights out and close the doors," Mr Hogan said. Teachable moment for Big Tech? The story of Kodak's rise and fall are almost cliched at this point. The firm's domination of consumer photography through film and camera products, but inability to adjust to digital photography are well documented, although as Mr Hogan says, superficially researched to some extent. In 1975, a Kodak employee by the name of Steven Sasson invented what many to be the first digital camera. Although bulky and initially impractical, the technology showed promise, but Kodak failed to see a future in which digital cameras would destroy the profitable film industry it dominated. It shelved Mr Sasson's digital camera project, and sealed the company's fate when digital cameras started to outsell film cameras. Yet what many often fail to factor in is that even if Kodak supported Mr Sasson's invention, smartphones – not necessarily digital cameras – changed photography forever. As Mr Hogan says, sometimes the rules of economics and time make a company's demise inevitable. Nothing lasts forever. "Going from the top of the leaderboard to being shown the door is something that inevitably happens," he said, adding that if competition and market forces do not cause company dominance to erode, sometimes government regulators step in and break up that dominance. "It's the evolution of capitalism and it's just how things work." He said that even companies like Nvidia, which is experiencing unprecedented success, inevitably falter, and there is not one single moment it can be pegged to. Much like Nvidia, Kodak was once considered an invincible darling of S&P 500. Its stock price, as of the writing of this article, hovers at $5 a share. Mr Hogan also said that although there are optimists who try to compare Kodak's recent struggles to that of Apple, which was nearing irrelevance in the mid-1990s only to come roaring back, those comparisons are ill-conceived. Apple's struggles occurred while the computer industry was still finding its footing and the company was relatively young, whereas Kodak was already past its prime when its downfall began. "It's clearly a fallen angel that's not coming back," Mr Hogan said. Kodak's brand remains strong despite struggles Although Kodak has financially meandered for more than a decade, at this point, the company's logo and name still carry weight. Throughout many parts of the world, and particularly in the Middle East, Kodak signs remain prominent outside print and photo shops. Timothy Kneeland, a professor of history, politics and law at Nazareth University in western New York, said that the company's contributions to chemical and photography breakthroughs helped to give the US brand unprecedented recognition. "Overseas, Kodak is loved," he said. "You can still see retail stores with Kodak branding and merchandise." Prof Kneeland also said when Kodak was ascending to its peak of influence, the company made it a priority to send representatives overseas to promote its film, lenses and cameras, giving the brand a significant advantage over competitors. "Kodak became the standard for film," he said, adding that the company's prolific TV advertisements boasting of capturing "Kodak moments" with cameras, made it a household name for billions. Robert Thompson, a professor of pop culture, television, radio and film at Syracuse University 's Newhouse School of Public Communications, said that in the 1960s, '70s and '80s, Kodak's products and advertising worked so well that the brand almost took on a generic quality, similar to how people refer to tissues as Kleenex or adhesive bandages as Band-Aids. "Their advertising essentially taught people how to use what was once just an emerging technology of photography," he explained. Prof Thompson said Kodak's advertising messages were easily transferable to other parts of the world. He said the now beleaguered company but resilient brand and logo offer a lesson to others at the centre of the current artificial intelligence boom, such as OpenAI and Anthropic. "They turned photography into something that was part of the daily activities of a huge portion of the population," Prof Thompson said. "AI is obviously a big deal too, but Kodak is admirable because it took technology and turned it into an aspirational product enjoyed by billions."
The National
5 hours ago
- The National
S&P raises India's credit rating to BBB in first upgrade for 18 years
S&P Global Ratings upgraded India 's long-term sovereign crediting rating to "BBB" from "BBB-" on Thursday, owing to the country's fiscal consolidation, credible monetary policy and strong economic growth. It was India's first upgrade in 18 years. 'The upgrade of India reflects its buoyant economic growth, against the backdrop of an enhanced monetary policy environment that anchors inflationary expectations,' S&P Global analysts wrote. "Together with the government's commitment to fiscal consolidation and efforts to improve spending quality, we believe these factors have coalesced to benefit credit metrics." S&P also raised India's short-term ratings to "A-2" from "A-3", adding that the outlook on the long-term rating is stable. It also revised its transfer and convertibility assessment to "A-" from "BBB+". India's Ministry of Finance said it welcomed S&P's decision to upgrade the country's credit rating. The ratings agency said India's economy had a 'remarkable comeback' from the Covid-19 pandemic, with real GDP growth averaging 8.8 per cent over the 2022 fiscal year to the 2024 fiscal year, the highest in the Asia-Pacific. Analysts said they expect GDP to increase 6.8 per cent annually over the next three years. 'India remains among the best performing economies in the world,' S&P Global said. S&P Global also expects the effects of the US tariffs on India's economy 'will be manageable', noting that about 60 per cent of its growth comes from domestic consumption. US President Donald Trump last week doubled India's tariff rate to 50 per cent because of its continued imports of Russian energy. 'We expect that in the event India has to switch from importing Russian crude oil, the fiscal cost, if fully borne by the government, will be modest given the narrow price differential between Russian crude and current international benchmarks,' analysts wrote. Analysts also anticipated that, factoring in sectoral exemptions on pharmaceuticals and consumer electronics, the exposure of Indian exports that would be subjected to tariffs at 1.2 per cent of GDP. While this could lead to a one-off hit to growth, S&P does not anticipate it will hurt India's long-term growth prospects. S&P also projected a general government deficit of 7.3 per cent of GDP in the 2026 fiscal year to fall to 6.6 per cent by to the 2029 fiscal year. It also anticipates the country's debt-to-GDP ratio to fall to 78 per cent by the 2029 fiscal year. S&P said it may lower the ratings if it finds weak political commitment to consolidated public finances. It may raise the ratings if fiscal deficits narrow in a way that would lower the general government debt below 6 per cent of GDP on a structural basis.
Khaleej Times
7 hours ago
- Khaleej Times
Bitcoin powers past $124,000, overtakes Google market cap
Bitcoin surged to a record high during early Asian trading on Thursday, breaking through $124,000 and overtaking Google parent Alphabet's market capitalisation, as a wave of institutional demand, corporate adoption, and pro-crypto policy in the United States fuelled optimism that the rally has much further to run. The world's largest cryptocurrency briefly touched $124,450 late on Wednesday before easing slightly, propelling its market capitalisation to $2.456 trillion — enough to rank as the fifth-largest asset globally. The move cemented Bitcoin's position above the $120,000 support level and underscored the momentum that has been building in recent weeks. Ethereum followed the upward trend, holding above $4,750, while Solana, Cardano, and Dogecoin all recorded double-digit percentage gains over the week. Only XRP lagged, staying near $3.24 and missing out on the rally. The price surge came on the back of record inflows into US spot Bitcoin exchange-traded funds, expanding balance-sheet allocations from major corporations, and a series of supportive policy moves from President Donald Trump's administration. For the year to date, Bitcoin has climbed more than 31 per cent and is up around 60 per cent from April's lows. Nigel Green, chief executive and founder of global financial advisory firm deVere Group, told Khaleej Times that the price action reflected 'multiple, powerful forces converging to push Bitcoin to new highs'. These include institutional capital pouring in through spot ETFs at record volumes, public companies treating Bitcoin as a strategic reserve asset, the White House actively supporting the sector, and nation states now showing strong profits from their Bitcoin positions. 'These aren't isolated developments; they're part of a deep, systemic shift in the global financial system,' Green said. Data from the ETF market underscored the institutional interest. BlackRock's iShares Bitcoin Trust (IBIT) led daily trading volumes with $3.7 billion in turnover, followed by Fidelity's FBTC with more than $500 million. Analysts say such volumes are an unmistakable sign that large-cap and pension-fund investors are taking long-term positions. Corporate Bitcoin holdings have also swelled to record valuations. Michael Saylor's Strategy, the Bitcoin-focused firm formerly known as MicroStrategy, said its reserves are now worth $77.2 billion — more than $35 billion above its previous peak last year. Sovereign adoption is delivering gains as well. El Salvador's government disclosed that its Bitcoin reserves, purchased at an average cost of $300.5 million, are now valued at $768 million, translating into unrealised profits of about $468 million. In Washington, momentum is shifting further towards integration of digital assets into mainstream financial products. Last week, President Trump signed an executive order directing the US Labour Department to explore allowing 401(k) retirement plans to hold cryptocurrencies and other alternative assets, potentially opening the door for millions of Americans to gain exposure to Bitcoin through employer-sponsored savings schemes. For Green and other market watchers, the combination of limited supply and expanding sources of demand points to further gains ahead. Bitcoin's fixed issuance rate means that as more institutions, corporations, and sovereigns acquire and hold the asset, the amount available to trade shrinks. 'The scarcity factor is now being amplified by unprecedented demand from entities that buy in size and hold for the long term,' Green said. 'This is strategic positioning in an asset that is becoming embedded in both private and public sector portfolios.' The deVere chief has reaffirmed his year-end price target of $150,000, noting that while short- term volatility is inevitable, the structural drivers are 'overwhelmingly positive'. Pullbacks, he argued, are being met with heavy buying from investors with deep pockets and strong conviction. 'Even if we see profit-taking, every dip is attracting substantial inflows,' Green said. 'Institutions are committing long-term capital, corporate treasuries are diversifying into Bitcoin, and national adoption is delivering measurable returns. Washington is shifting from resistance to integration. This is why we are maintaining our $150,000 target.' Analysts say the macroeconomic backdrop is also working in Bitcoin's favour. With expectations rising that the US Federal Reserve will ease monetary policy in the coming quarters, assets perceived as stores of value stand to benefit from an environment of lower interest rates and increased liquidity. This combination of policy, adoption, and capital flows is reinforcing bullish sentiment across the crypto ecosystem. Market strategists caution that Bitcoin's rapid ascent makes it vulnerable to sharp corrections, particularly if risk appetite falters in global markets. However, they also note that the scale and nature of current buying — led by institutions, not retail speculation — suggest that any downturns could be shorter and less severe than in past cycles. With the $125,000 mark now in sight, traders are debating whether the next leg higher will come in a matter of days or stretch into the weeks ahead. For now, the momentum appears firmly on the side of the bulls. 'The trajectory remains higher,' Green said. 'The fundamentals are strong, the policy environment is supportive, and the buyers are there. For the time being, Bitcoin looks set to continue climbing.'
