Latest news with #FabianBimmer
The Star
6 hours ago
- Business
- The Star
Microsoft's Azure cloud revenue surges as AI spending pays off
FILE PHOTO: A view shows the Microsoft logo on the day of the Hannover Messe, one of the world's largest industrial trade fairs with this year's partner country being Canada, as both Canada and the European Union face new U.S. tariffs, in Hanover, Germany, March 31, 2025. REUTERS/Fabian Bimmer/File Photo (Reuters) -Microsoft's Azure cloud-computing business delivered another quarter of blockbuster growth on Wednesday, powering revenue above Wall Street's expectations and showcasing the growing returns on its massive artificial intelligence bets. Shares of the software company rose more than 6% in extended trading after it said Azure sales surpassed $75 billion on an annual basis, the first time it has disclosed that beat expectations for $74.62 billion. The business still trails market leader Amazon Web Services, which had an earlier start in cloud computing and brought in $107.56 billion in its most recent fiscal year. The results are likely to bolster investor confidence that Big Tech is benefiting from its massive data center buildout, with capital expenditure to reach $330 billion this year. Rival Alphabet's earnings also showed last week that AI spending was rising, but so were the returns, as it beat revenue estimates and lifted its outlay forecast by $10 billion. Microsoft said Azure revenue jumped 39% in the June quarter, more than the analyst average estimate of 34.75%, according to Visible Alpha. Overall revenue rose 18% to $76.4 billion in the April-June period, Microsoft's fiscal fourth quarter. Analysts on average expected $73.81 billion, according to data compiled by LSEG. Capital spending rose 27% to $24.2 billion, compared with estimates of $23.08 billion, per Visible Alpha. Microsoft has said the spending is crucial to overcoming supply constraints that have hampered its ability to meet soaring AI demand. The company has emerged as an early leader in making money from AI thanks to its exclusive access to OpenAI's technology. The tie-up has helped attract scores of businesses to its cloud service and allowed Microsoft to swiftly roll out AI products such as its M365 Copilot AI assistant for enterprises. It has also turned the company into an investor darling that is $200 billion short of becoming only the second company to hit a $4-trillion valuation, with its shares up about 20% this year. But investor doubts have risen about the OpenAI tie-up as the companies renegotiate the deal and the startup shifts some workloads to rivals, including Google and Oracle. Media reports have said that the two are at a deadlock over how much access Microsoft will retain to OpenAI's tech and its stake if OpenAI converts into a public-benefit corporation. Microsoft has tried to reduce its reliance on OpenAI by developing in-house AI technology and broadening its model lineup with partners such as xAI, Meta, and France's Mistral, hosting their models on Azure for clients. (Reporting by Deborah Sophia and Aditya Soni in Bengaluru; Editing by Anil D'Silva and Rod Nickel)
Straits Times
a day ago
- Automotive
- Straits Times
Germany prepares huge orders for jets, armored vehicles, sources say
Sign up now: Get ST's newsletters delivered to your inbox FILE PHOTO: A Boxer armoured transport vehicle manoeuvres on the day arms manufacturer Rheinmetall hands the first one over to the German armed forces Bundeswehr, in Unterluess, Germany, May 2, 2024. REUTERS/Fabian Bimmer/File Photo BERLIN - Germany is preparing a wave of multi-billion-euro procurement orders, including 20 Eurofighter jets, up to 3,000 Boxer armoured vehicles, and as many as 3,500 Patria infantry fighting vehicles, two sources familiar with the plans told Reuters. The purchases are part of Chancellor Friedrich Merz's push to build Europe's most powerful conventional army, aiming to reduce reliance on an increasingly unpredictable ally, the United States, and take greater responsibility for European security. Earlier this year, Merz secured the parliamentary backing needed to exempt defence spending from Germany's constitutionally enshrined debt limits, enabling his government to finance the military overhaul. Germany's regular defence budget is projected to rise to around 83 billion euro ($95.8 billion) in 2026, up by 20 billion from 2025. The Eurofighter order alone is expected to cost between 4 billion and 5 billion euro, the sources said, while the Boxer vehicles — built by KNDS and Rheinmetall — are estimated at 10 billion euro. The Patria vehicles are seen costing roughly 7 billion euro. Deliveries of the Boxer and Patria platforms are expected over the next 10 years, according to the sources. The defence ministry is also advancing plans to purchase more IRIS-T air defence systems and several hundred SkyRanger drone defence platforms, the sources said, noting that financial details for those acquisitions have yet to be finalised. Top stories Swipe. Select. Stay informed. Business No clarity yet on baseline or pharmaceutical tariffs with US: DPM Gan Singapore Grace Fu apologises for Tanjong Katong sinkhole, says road may stay closed for a few more days Opinion Nobel Prize? Maybe not, but give Asean credit for Cambodia-Thailand ceasefire Singapore Facts and myths intersect at the National Museum's new glass rotunda installation Singapore Liquidators score victory to recoup over $900 million from alleged scammer Ng Yu Zhi's associates Multimedia Making a splash: Picture-perfect moments from the World Aquatics Championships in S'pore Singapore Terrorism threat in Singapore remains high, driven by events like Israeli-Palestinian conflict: ISD Singapore S'pore can and must meaningfully apply tech like AI in a way that creates jobs for locals: PM Wong Bloomberg also reported on the procurement plans, though citing some differing figures. The defence ministry did not immediately reply to a request for comment. Merz has pledged to meet NATO's new benchmark of spending 3.5% of GDP on defence by 2029 - well ahead of most alliance members. But Germany also has more catching up to do. Hours after Russia's invasion of Ukraine, the chief of the German army publicly vented his frustration over the long-running neglect of military readiness in his country, saying the Bundeswehr was "standing there more or less empty-handed." REUTERS
The Star
15-07-2025
- Business
- The Star
US planes, cars, drinks on EU list for potential tariffs
Containers are stacked at the loading terminal "Altenwerder" in the port of Hamburg, Germany, February 17, 2025. REUTERS/Fabian Bimmer/File Photo BRUSSELS (Reuters) -Aircraft, machinery, cars, chemicals and medical devices are the leading big-ticket items on the latest list of U.S. goods the European Commission has proposed to impose tariffs on if talks with Washington do not yield an agreement on trade. The package is the second put forward by the European Commission, which oversees trade policy for the 27-nation European Union. It is designed to respond to U.S. tariffs on cars and car parts and a baseline tariff, currently at 10%. U.S. President Donald Trump, however, is now threatening a baseline tariff on imports from the EU of 30% from August 1, a level European officials say is unacceptable and would end normal trade between two of the world's largest markets. The list, sent to EU member states and seen by Reuters on Tuesday, covers U.S. goods imports worth 72 billion euros ($84.1 billion). It also includes electrical and precision equipment as well as agriculture and food products - a range of fruits and vegetables, along with wine, beer and spirits - worth a total of 6.35 billion euros. A first package on 21 billion euros of U.S. goods was approved in April but then immediately suspended to allow room for negotiations. That suspension has been extended to August 6. EU officials said on Monday that they were still seeking to strike a deal to avoid Trump's heavy tariff blow, but EU trade chief Maros Sefcovic said member states had agreed the bloc would need to take countermeasures if talks with the U.S. fail. The Commission initially put forward the second package in May for a public consultation. The proposal then related to 95 billion euros of U.S. goods. It has since been whittled down, though most of the main items have remained. There is no specific date for EU members to approve the package. ($1 = 0.8562 euros) (Reporting by Philip Blenkinsop; Editing by Joe Bavier)
Straits Times
15-07-2025
- Business
- Straits Times
US planes, cars, drinks on EU list for potential tariffs
Containers are stacked at the loading terminal \"Altenwerder\" in the port of Hamburg, Germany, February 17, 2025. REUTERS/Fabian Bimmer/File Photo BRUSSELS - Aircraft, machinery, cars, chemicals and medical devices are the leading big-ticket items on the latest list of U.S. goods the European Commission has proposed to impose tariffs on if talks with Washington do not yield an agreement on trade. The package is the second put forward by the European Commission, which oversees trade policy for the 27-nation European Union. It is designed to respond to U.S. tariffs on cars and car parts and a baseline tariff, currently at 10%. U.S. President Donald Trump, however, is now threatening a baseline tariff on imports from the EU of 30% from August 1, a level European officials say is unacceptable and would end normal trade between two of the world's largest markets. The list, sent to EU member states and seen by Reuters on Tuesday, covers U.S. goods imports worth 72 billion euros ($84.1 billion). It also includes electrical and precision equipment as well as agriculture and food products - a range of fruits and vegetables, along with wine, beer and spirits - worth a total of 6.35 billion euros. A first package on 21 billion euros of U.S. goods was approved in April but then immediately suspended to allow room for negotiations. That suspension has been extended to August 6. EU officials said on Monday that they were still seeking to strike a deal to avoid Trump's heavy tariff blow, but EU trade chief Maros Sefcovic said member states had agreed the bloc would need to take countermeasures if talks with the U.S. fail. The Commission initially put forward the second package in May for a public consultation. The proposal then related to 95 billion euros of U.S. goods. It has since been whittled down, though most of the main items have remained. Top stories Swipe. Select. Stay informed. Singapore $3b money laundering case: MinLaw acts against 4 law firms, 1 lawyer over seized properties Singapore Air India crash: SIA, Scoot find no issues with Boeing 787 fuel switches after precautionary checks Opinion What we can do to fight the insidious threat of 'zombie vapes' Singapore $230,000 in fines issued after MOM checks safety at over 500 workplaces from April to June Business 'Some cannot source outside China': S'pore firms' challenges and support needed amid US tariffs Opinion Sumiko at 61: Everything goes south when you age, changing your face from a triangle to a rectangle Multimedia From local to global: What made top news in Singapore over the last 180 years? Singapore 'Nobody deserves to be alone': Why Mummy and Acha have fostered over 20 children in the past 22 years There is no specific date for EU members to approve the package. REUTERS
Straits Times
15-07-2025
- Business
- Straits Times
For Europe, 30% US tariff would hammer trade, force export model rethink
A container ship is seen at the loading terminal \"Altenwerder\" in the port of Hamburg, Germany, February 17, 2025. REUTERS/Fabian Bimmer/File Photo BRUSSELS - The 30% tariff on European goods threatened by U.S. President Donald Trump would, if implemented, be a game-changer for Europe, wiping out whole chunks of transatlantic commerce and forcing a rethink of its export-led economic model. European ministers meeting in Brussels on Monday remained convinced they can bring Trump back from the brink before his Aug. 1 deadline and reach a deal that would keep the $1.7 trillion two-way trading relationship broadly intact. But the wild swings in Trump's mood towards the European Union - which he has sometimes labelled as friendly and at other times accused of being set up specifically to destroy the United States - keep the 30% threat very much alive for now. "It will be almost impossible to continue the trading as we are used to in a transatlantic relationship," EU trade chief Maros Sefcovic said of the 30% rate before meeting ministers and officials of the 27 EU capitals to give them an update. "Practically it prohibits the trade." EU officials had been hoping they could limit the damage by agreeing a baseline tariff around 10% - the one currently in place - with additional carve-outs for key sectors like autos. Last year the United States accounted for a fifth of all EU exports - its largest partner. Trump's bugbear is the $235 billion U.S. deficit generated by the goods component of that trade, even though the U.S. earns a surplus on services. Top stories Swipe. Select. Stay informed. Singapore $3b money laundering case: MinLaw acts against 4 law firms, 1 lawyer over seized properties Opinion What we can do to fight the insidious threat of 'zombie vapes' Asia China's economy grows 5.3% in first half of 2025, momentum slowing amid trade tensions Business 'Some cannot source outside China': S'pore firms' challenges and support needed amid US tariffs Multimedia From local to global: What made top news in Singapore over the last 180 years? Singapore Turning tragedy into advocacy: Woman finds new purpose after paralysis Opinion Sumiko at 61: Everything goes south when you age, changing your face from a triangle to a rectangle Singapore 'Nobody deserves to be alone': Why Mummy and Acha have fostered over 20 children in the past 22 years UPEND POLICY PLANS The impact of making European exports - from pharmaceuticals to autos, machinery or wine - too expensive to be viable for American consumers would be instantly tangible. Economists at Barclays estimate an average tariff rate on EU goods of 35% including both reciprocal and sectoral duties combined with a 10% retaliation from Brussels would shave 0.7 percentage points off euro zone output. This would eat up most of the euro zone's already meagre growth and likely lead the European Central Bank to cut its 2% deposit rate further. "Inflation would likely undershoot the 2% target more deeply, and for longer, prompting a more accommodative monetary policy stance – with the deposit rate potentially reaching 1% by (March 2026)," the Barclays economists said. An earlier estimate by German economic institute IW found tariffs of 20% to 50% would cost Germany's 4.3 trillion euro economy more than 200 billion euros between now and 2028. While arguably small in percentage terms, that lost activity could still upend Chancellor Friedrich Merz's plans to push through tax cuts and spend more on renewing the country's long neglected infrastructure. "We would have to postpone large parts of our economic policy efforts because it would interfere with everything and hit the German export industry to the core," Merz said at the weekend of a 30% rate. NOWHERE TO RUN Further down the line, it raises bigger questions over how Europe recoups the lost activity to generate the tax revenues and jobs needed to fund ambitions ranging from caring for ageing populations to military rearmament. Under its existing policy of trade diversification, the EU has done well in striking preliminary deals with new partners but - as the continued delay over completion of the giant EU-Mercosur trade pact shows - it has struggled to get them fully signed and sealed. "The EU does not have different markets to pull up to and sell into," Varg Folkman, policy analyst at the European Policy Centre think tank said of the long and complex timelines involved in classic free trade deals. Some observers have argued the stand-off with Trump is what the EU needs to complete long-delayed reforms of its single market, boosting domestic demand and rebalancing its economy away from the exports which account for around half of output. The International Monetary Fund has estimated the EU's own internal barriers to the free flow of activity are the equivalent of tariffs of 44% for goods and 110% for services. Mooted reforms such as creating freer cross-border capital markets have made little headway in more than a decade. "It is easier said than done. There isn't an agreement to deepen. The barriers are imposed by the EU members themselves to benefit their own," Folkman said of the web of national regulations. How all this plays into the EU's negotiating strategy in the less than three weeks ahead remains to be seen - but for now, the bloc has stuck to its line of being open to talks while readying retaliatory measures if they break down. One thing that might persuade Trump to reach a deal, some European observers suggest, is that the lingering uncertainty may by itself push back the timing of the Federal Reserve interest rate cut the U.S. president so desires. "The latest developments on the trade war suggest that it will take more time to get a sense of the 'landing zone' on of course raises uncertainty for everyone, including the Fed," AXA chief economist Gilles Moec said. "With this new for cutting quickly get even harder to justify." REUTERS
