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(Bloomberg) -- Walt Disney Co.’s much-anticipated debut of its new streaming video service was marred by early technical glitches and crashes for some users, though it was still stirring excitement and buzz on social media and worked successfully for many subscribers.New Star Wars series “The Mandalorian” was trending on social media, and Twitter users were proclaiming their excitement at finally being able to sign up and watch Disney+ after months of well-orchestrated anticipation from the Disney marketing machine.But some users reported trouble getting the app to work as soon as they tried to log on in the early hours of Tuesday morning, when the East Coast of the U.S. and Canada was awakening. Problems reported on the @DisneyPlusHelp Twitter handle ranged from “service not available” to specific issues such as “The early seasons of The Simpsons are in the wrong aspect ratio.”The glitches ramped up from about a hundred reported outages to more than 7,000 within the span of an hour on DownDetector.com. They were still over 6,900 as of 8:45 a.m. New York time.In its quest to turn a nearly century-old entertainment giant into a streaming leader, Disney is entering a market already crowded with heavy hitters, including Netflix Inc., Amazon.com and Apple Inc. And more rivals are diving in soon, such as AT&T Inc. and Comcast Corp. next year. The world’s largest entertainment company thinks it can seize the day with a product packed with the company’s best movies and TV shows, including “Star Wars,” Marvel and Pixar films, as well as its library of some 400 children’s movies.“I feel great about what we’ve done,” Chief Executive Officer Bob Iger told a roomful of reporters last week. “I love the app. It’s rich in content. It’s rich in brands. It’s rich in library.”Priced at $7 a month, Disney+ is a bet that the company can attract as many as 90 million subscribers worldwide in five years.It already has some key allies. Some 19 million Verizon Communications Inc. customers will be able to get the service free for the first year, thanks to a deal Disney cut with the carrier. Disney fan club members, meanwhile, got to prepay for a three-year subscription for less than $4 a month.“These are deals you just can’t beat,” said Kevin Mayer, who heads Disney’s direct-to-consumer division and has helped craft the streaming strategy.The company’s shares were up almost 1% to $138 in early U.S. trading.Disney is looking to make the product accessible to as many people as possible. Customers will get to store their password in as many as 10 devices per family and watch four concurrent streams of movies or shows.The site is designed around five main “tiles,” named after the company’s key brands, including Marvel and the recently acquired National Geographic channel. Disney is spending $1 billion on new programming -- such as “The Mandalorian,” the first live-action “Star Wars” series -- in the first year alone. Disney+ also will offer the “Star Wars” movies in 4K-definition video for the first time.Unlike Netflix, which releases new seasons of programs all at once. Disney+ will put out one episode per week for its original shows. The programs will come out at midnight Pacific time on Fridays -- timing geared toward attracting a global audience, according to Ricky Strauss, Disney’s head of content and marketing for the product.A key part of Disney’s streaming strategy is bundling its services together. For $12.99, subscribers can get a package that includes Disney+, ESPN+ and the ad-supported version of Hulu. Those three services would cost about $18 a month if purchased individually.It’s all coming at great cost to the company. Mayer’s direct-to-consumer division saw its losses more than double to $740 million in the quarter that ended in September. The company doesn’t expect to make a profit on Disney+ for at least five years.But the marketing blitz for the new service seems to have paid off. UBS Group AG analyst John Hodulik surveyed more than 1,000 consumers in October and found some 86% had heard of Disney+. Nearly half were likely to subscribe.The company created its largest cross-promotional push ever, putting solicitations for the new service in Disney-owned hotels and its radio network. Disney also promoted the new service on ESPN’s “Monday Night Football.” Fans watched a preview of Disney+’s new “High School Musical” spinoff on ABC on Friday.“If you haven’t heard about Disney+ by Tuesday,” Strauss said last week. “I promise you will.”Among the new originals on the show is a live-action version of “Lady and the Tramp.” Normally a remake of a classic like that would get a big premiere, a theatrical run and advertising everywhere.In the streaming era, it gets dropped on a Tuesday morning. The question now is whether the Disney magic still comes through without the Hollywood glamour.Either way, Disney doesn’t have much of a choice, said David Yoffie, a professor at Harvard Business School.“Netflix has changed the nature of the game,” Yoffie said. “If they didn’t participate, they would be left behind.”\--With assistance from Brandon Kochkodin.To contact the reporters on this story: Christopher Palmeri in Los Angeles at firstname.lastname@example.org;Scott Moritz in New York at email@example.comTo contact the editors responsible for this story: Nick Turner at firstname.lastname@example.org, Rob GolumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- AbbVie Inc. is selling bonds to help finance its $63 billion acquisition of Allergan Plc, in what will likely be the largest bond sale this year.The drug maker is selling senior unsecured bonds in as many as 10 parts, according to a person with knowledge of the matter. The longest portion of the offering, a 30-year security, may yield around 2.1 percentage points above Treasuries, said the person, who asked not to be identified as the details are private.AbbVie is said to be targeting an offering size of $28 billion, which would easily be the biggest bond sale this year and could crack the top five of all time. The company wrapped up calls with investors Friday ahead of the new issue.AbbVie agreed to buy Allergan in June in one of the largest pharmaceutical mergers this year. The acquisition is expected to take the combined company’s debt to more than three times a measure of its earnings, credit raters have said.Still, Moody’s Investors Service has left its rating on AbbVie unchanged at two levels above speculative grade, as the transaction should generate significant free cash flow. S&P Global Ratings, however, said it will likely cut AbbVie one level to BBB+, three levels above junk. Management has reiterated its intention to pay down debt, to achieve net debt to Ebitda -- earnings before interest, tax, depreciation and amortization -- of 2.5 times by the end of 2021.Morgan Stanley, Bank of America Corp. and Barclays Plc are managing the bond sale, the person said.\--With assistance from Brian Smith.To contact the reporter on this story: Elizabeth Rembert in New York at email@example.comTo contact the editors responsible for this story: Nikolaj Gammeltoft at firstname.lastname@example.org, Molly Smith, Christopher DeRezaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- State officials investigating Alphabet Inc.’s Google met Monday to dive into competition issues surrounding the search giant as they press forward with an investigation into whether the company is violating antitrust laws, according to people familiar with the matter.The officials met privately in Denver with outside experts with the goal of gaining a deeper understanding of Google’s businesses and the dynamics of the markets it operates in, including digital advertising, said one of the people.The gathering comes two months after all but two states opened an antitrust investigation into Google with an initial focus on its advertising practices, according to an investigative demand sent to the company. Publishers have long complained that Google’s dominance in the technology that delivers ads across the web harms competition.The meeting was similar to one held last month in New York where state officials met with experts about Facebook Inc. The social media giant is under investigation by 45 states, Guam and the District of Columbia.One of the aims of the Google meeting was to help state officials prepare for an investigation that will likely present challenging competition issues, said one of the people. The states were also planning to map out a strategy for dividing the workload of the investigation, said two of the people.Among those advising the states is Cristina Caffarra, an economist at Charles River Associates. Google has complained about Caffarra’s work for the state because of her past work for Google adversaries News Corp., Microsoft Corp., and Russia’s Yandex NV.The states are investigating Google in parallel to a Justice Department antitrust probe of the company. The House Judiciary Committee’s antitrust panel is also conducting an inquiry into Google and other large tech companies.(Updates from fifth paragraph with challenges of the antitrust investigation. A previous version of this story was corrected to clarify the number of states and attorneys general investigating.)To contact the reporters on this story: David McLaughlin in Washington at email@example.com;Ben Brody in Washington, D.C. at firstname.lastname@example.org;Naomi Nix in Washington at email@example.comTo contact the editors responsible for this story: Sara Forden at firstname.lastname@example.org, John HarneyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Walmart stock is up over 13% in the last three months. Now, with the firm set to report its Q3 financial results before the opening bell Thursday, let's break down Walmart to see if investors should consider buying WMT shares...
Associate Stock Strategist Ben Rains dives into some of Disney's recent quarterly results, before we look at Disney+ and discuss which company, from Netflix to Amazon might win the streaming TV war...
(Bloomberg) -- Alphabet Inc.’s Google is working with one of the biggest U.S. health-care providers to develop new digital tools, giving the internet giant deep access to the personal health information of millions of Americans.The partnership with Ascension, a nonprofit, Catholic health-care provider with more than 150 hospitals in 20 states, is wide-ranging and includes developing new software that uses artificial intelligence to improve patient outcomes, Ascension said Monday in a statement. The Wall Street Journal reported the partnership earlier, and said the deal had originally been struck last year.All information-sharing complies with federal privacy laws and Ascension’s strict requirements for data handling, the health-care company said in the statement. The partnership hadn’t previously been disclosed, including to patients whose data may have been involved, the Journal reported. As part of the work, Google employees may have had access to data including hospital records and patient names, but the company declined to elaborate.Google and other big tech companies have been pushing into health care in recent years. Apple Inc. asks its Apple Watch users to opt in to studies on heart rate, while Amazon.com Inc. has bought an online pharmacy and partnered with other corporations on a health venture called Haven. Google, for its part, has built a significant health-care team and is experimenting with using artificial intelligence to improve health care.To contact the reporter on this story: Gerrit De Vynck in New York at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- John Legere may be exactly the kind of CEO WeWork needs. He brings much of the eccentricity and charisma that was initially appreciated about ousted founder Adam Neumann, but without all the headaches and liabilities. Is Legere ready to retire his closet of magenta T-shirts? We Co., the parent of the beleaguered office-sharing startup, is in discussions to recruit Legere, the current head of wireless carrier T-Mobile US Inc., as its next CEO, the Wall Street Journal reported on Monday. The talks come after WeWork’s plans for an initial public offering imploded in grand fashion in recent weeks, as a litany of questionable decisions and conflicts of interests involving then-CEO Neumann came to light in a saga that has captivated Wall Street. WeWork, for a short time one of the world’s most valuable startups, had said in its summer IPO prospectus that its “future success depends in large part on the continued service of Adam Neumann.” Weeks later, Neumann was considered such a risk that the company decided it was better to effectively give him $1.2 billion to step away.Hiring Legere would immediately help improve WeWork’s tarnished reputation, though repairing the business is another story. Office vacancies increased in the third quarter, and the company was at risk of running out of cash next year. Legere’s garish style and hectoring on Twitter may also cause some to wonder whether he’s just another Neumann; it’s certainly hard not to notice the physical resemblance between the long hair, loud personality and signature T-shirt-and-sports-coat pairing.But few CEOs can say they’ve taken on a challenge as difficult as reviving T-Mobile — and succeeded. That’s Legere’s claim to fame. As I wrote in July 2018, even the groaners who are tired of his shtick and Twitter snark can’t argue against his track record.When Legere became CEO of T-Mobile in 2012, it was a distant fourth-place competitor in the U.S. wireless market and losing customers. Now it’s the fastest-growing member of the industry, and its displaced Sprint as the No. 3 carrier. T-Mobile’s lower-priced plans and marketing mojo have even given AT&T Inc. and Verizon Communications Inc. a run for their money. In the last five years, shares of all its closest rivals advanced anywhere from 12% to 21%. T-Mobile’s nearly tripled. Legere may seem like an odd choice given that he’s spent his career working in the telecommunications and technology industries. The connection becomes clearer when considering SoftBank Group Corp.’s role. The Japanese conglomerate built by billionaire Masayoshi Son not only controls WeWork — the result of a $9.5 billion rescue package — but also Sprint Corp., T-Mobile’s closest competitor and hopeful merger partner. Sprint Executive Chairman Marcelo Claure, who is also chief operating officer of SoftBank, was tapped to help fix WeWork’s problems. He’s spent a lot of time with Legere these last two years as they worked to sway federal and state officials to support the merger of the two wireless carriers. Legere has done with T-Mobile what Claure and his predecessors couldn’t with Sprint, even as SoftBank injected billions along the way. One might think that WeWork would seek out a lower-profile leader, given the roller-coaster it has been on the past few months; Legere is anything but that. And at 61 years old, it’s a little surprising that he would consider following up such a successful run at T-Mobile with a stint at a company as troubled as WeWork. T-Mobile has become part of his identity — he’s spotted in magenta T-Mobile gear whether he’s going for runs in New York City or filming his Facebook Live cooking show from his kitchen. T-Mobile shareholders wouldn't be happy to see Legere go. Worse, there's the appearance of a conflict of interest if SoftBank is pursuing Legere while the companies are separately renegotiating the terms of the Sprint merger.That aside, it’s clear that Legere likes a challenge, and WeWork is the ultimate one.To contact the author of this story: Tara Lachapelle at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Amazon.com Inc. plans to launch a new supermarket brand distinct from the Whole Foods Market chain the company acquired two years ago, a sign of the retail giant’s hunger for a slice of the grocery market beyond high-end organic food.The company has posted four job listings for “Amazon’s first grocery store” in the Woodland Hills neighborhood of Los Angeles. An Amazon spokeswoman confirmed the listings, and said the store would open in 2020. The brand will be distinct from Whole Foods and will have a conventional checkout line, unlike the cashierless Amazon Go convenience stores, she said. Amazon’s plans for the store were reported earlier by CNET.The e-commerce company purchased Whole Foods in a splashy $13.7 billion deal two years ago, but has yet to make much headway in the $900 billion U.S. grocery industry. The Whole Foods brand, finicky about what is allowed on store shelves based on its healthy image, clashes with Amazon’s desire to give customers whatever they want. Amazon rival Walmart Inc., which captures about 25% of all U.S. grocery spending, sells items such as Pepsi and Cheetos that shoppers can’t find at Whole Foods. Grocery industry analysts have speculated that Amazon might branch out with a new store where such products won’t be seen as betrayal to the brand.Online grocery shoppers prefer in-store pickup options to home delivery by nearly a 2-to-1 margin, and Amazon needs more stores to meet that growing demand, said David Bishop, a partner with research firm Brick Meets Click. In-store pickup requires more stores closer to shoppers -- about 3 to 5 miles from their homes -- than grocery delivery services, he said.“The reason Amazon needs to expand its physical footprint is an accelerated demand for grocery pickup service as opposed to delivery,” he said. “Shoppers have a greater sense of control when they pick up their groceries at the store in a secure location rather than worrying about it being left at their house.”Amazon’s sales from physical stores, the vast majority of which are purchases at Whole Foods stores, declined 1.3% from a year earlier to $4.19 billion in the third quarter. Amazon said the total doesn’t include online sales from Whole Foods, but the Seattle-based company doesn’t break out that figure.Woodland Hills is an upscale suburban neighborhood in the San Fernando Valley. The Wall Street Journal reported earlier this year that Amazon planned to open dozens of grocery stores under a new brand, starting with an outpost in Los Angeles.(Updates with analyst’s comment in fifth paragraph)To contact the reporters on this story: Matt Day in Seattle at email@example.com;Spencer Soper in Seattle at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
NEW YORK/WASHINGTON (Reuters) - State attorneys general are meeting on Monday in Colorado to discuss their probe into whether Google's business practices break antitrust law, according to two sources knowledgeable about the meeting. The gathering was expected to be similar to one held in New York in October, where state and federal enforcers from the Justice Department and Federal Trade Commission discussed their probe of Facebook . The probe of Google, a unit of Alphabet Inc , is being led by the Texas attorney general's office.
Alphabet Inc's Google has signed its biggest cloud computing customer in healthcare to date, in a deal giving it access to datasets that could help it tune potentially lucrative artificial intelligence (AI) tools. Google and Ascension, which operates 150 hospitals and more than 50 senior living facilities across the United States, said the healthcare provider would move some data and analytics tools in its facilities to Google's servers. The deal was mentioned in Google's July earnings call, but drew scrutiny on Monday after the Wall Street Journal reported https://on.wsj.com/2q3WCer that Google would gain personal health-related information of millions of Americans across 21 states.
(Bloomberg) -- With Comcast Corp.’s fight against media mogul Byron Allen’s racial-discrimination lawsuit about to reach the Supreme Court this week, a congressman has weighed in with a call to dismantle the cable and entertainment giant.Allen, the former comedian who controls Entertainment Studios Inc., alleges that Comcast’s unwillingness to carry most of his cable channels is discriminatory. The U.S. Court of Appeals for the Ninth Circuit ruled in June that the suit could go forward, and the Supreme Court agreed to hear Comcast’s appeal of that ruling.At issue is Comcast’s agreement to carry independent TV networks as a condition of its 2011 acquisition of NBCUniversal. Allen maintains that Comcast’s refusal to carry Entertainment Studios networks such as ES Lifestyle Network, Comedy.TV and Cars.TV violates the memoranda of understanding reached under the deal.Representative Bobby Rush agrees. “Simply put, it is my belief that the Comcast Corporation needs to be broken up,” the Illinois Democrat said in a letter to Chief Executive Officer Brian Roberts. “Comcast’s decision to ignore the memoranda illustrates a careless disregard of minority communities and their interests.”Read more: Supreme Court to Consider Curbing Racial Discrimination ClaimsIt’s unclear under what mechanism Rush would push for a breakup of Comcast.Allen said he pitched his channels to Comcast at the time of the merger approval, to no avail. “This is what everyone feared about their merger,” he said in a phone interview.Comcast has “gone above and beyond the MOUs from the NBCUniversal transaction in every case,” said a company spokesman, adding that Allen chose not to participate in its memoranda-of-understanding process. “There is no major media company in America that has done more to promote diverse programming than Comcast.”The spokesman said Comcast carries black-owned channels such as Sean Combs’s Revolt and Magic Johnson’s Aspire. It also carries the Weather Channel, which Entertainment Studios bought last year for $300 million, under an agreement that predates the acquisition.Allen said Comcast had told him he didn’t need to participate in the memoranda-of-understanding process because it had his information from previous submissions. He said he didn’t press the issue because he believed the process to be fraudulent.Allen has based his lawsuit on Section 1981 of the Civil Rights Act of 1866, a provision barring racial discrimination in contracting. The Ninth Circuit didn’t rule on the merits of his claim but said Allen only needed to show that racial discrimination was a “motivating factor” in Comcast’s decisions not to carry his channels.Comcast said it is asking “that Section 1981 in our case be interpreted the same way it has been interpreted for decades across the country.”\--With assistance from Greg Stohr.To contact the reporter on this story: Kamaron Leach in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, John J. Edwards IIIFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A Dutch court has ordered Facebook to remove advertisements that misuse the likeness of a local celebrity to promote fraudulent Bitcoin-related investments. Dutch billionaire tycoon John de Mol sued Facebook, saying it had failed to respond to repeated requests to pull advertisements that misused his and other local celebrities' likenesses and led to investors losing $1.7 million euros. The court ordered Facebook to pull the offending ads or be fined up to 1.1 million euros ($1.2 million).
(Bloomberg Opinion) -- How do you take an innovative academic theory and apply it in the world of investing? That was the challenge confronting David Booth, the co-founder of Dimensional Fund Advisors. Booth was a student of University of Chicago economist and future Nobel laureate Gene Fama, whose ideas about efficient markets and factor-based investing revolutionized finance. Booth and Fama discuss their 50-year relationship in our Masters in Business conversation, streamed live from the University of Chicago Booth School of Business.Fama discusses how computers eventually led to the efficient-market hypothesis, meaning market incorporate all available information in setting prices; the technology allowed researchers to evaluate how well active managers who pick individual investments were actually performing. Before that, there was no quantitative evidence or data to gauge managers' performance. The new data-crunching technology also let researchers test of Fama’s theories, and for the first time, evaluate investing results after fees. This also led to the identification of factors that drove returns, and ultimately the (various) Fama-French factor models.Booth discusses how taking his first class with Fama changed his life. He eventually started Dimensional Funds out of a spare bedroom in a Brooklyn, New York, apartment. He asked Fama to be on his board of directors, followed by Myron Scholes and Merton Miller, two other University of Chicago economics professors and future Nobel laureates.The full video of the interview is here.You can stream/download the full conversation, including the podcast extras on Apple iTunes, Overcast, Spotify, Google, Bloomberg and Stitcher. All of our earlier podcasts on your favorite pod hosts can be found here.Next week, we speak with former Secretary of Defense Ash Carter, author of 11 books, including most recently, "Inside the Five-Sided Box: Lessons from a Lifetime of Leadership in the Pentagon."To contact the author of this story: Barry Ritholtz at firstname.lastname@example.orgTo contact the editor responsible for this story: James Greiff at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Barry Ritholtz is a Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Weakness in the data center market might have affected NVIDIA's (NVDA) third-quarter fiscal 2020 earnings. However, strength in gaming and automotive is expected to have aided the top line.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Investing.com – Nvidia rose slightly Monday, despite overall tech weakness, after some on Wall Street upgraded their outlook on the chipmaker ahead of its quarterly report due later this week.
Alphabet Inc’s Google is bringing to Brazil the latest version of its Google Nest Mini smart speaker, with plans to start selling it in major online and brick-and-mortar retailers in the country on Tuesday. Google priced its Nest Mini device with Google Virtual Assistant integrated at 349 reais ($85) in Brazil. Local retailers Magazine Luiza, Lojas Americanas and Via Varejo’s Casas Bahia are among the online and brick-and-mortar chains chosen to sell Google’s gadget, as well as Argentina’s MercadoLibre Inc.
(Bloomberg Opinion) -- The global debate on innovation and regulation is about to take a new turn with a Turkish plan for an all-encompassing digital tax. The tax, which is expected to be approved by parliament this week, will apply not only to electronic marketplaces like eBay and digital-advertising giants like Google and Facebook, but also to e-commerce platforms involved in the sale of digital goods and services, like Spotify and Netflix. This goes beyond the scope of the French digital tax which entered into force a few months ago and the abortive European Union proposal of last year. Turkey’s proposed tax has rekindled the debate on the fairness of globalization and the role of international governance. The severity of the regulatory framework being contemplated is in many ways a by-product of the failure of multilateralism and its inability to redress the grievances of nations that perceive the system as being rigged against their economic interest.National governments have long grappled with the need to tax the digital behemoths. Authorities in Europe and in the emerging world are seeking a formula that would give them tax revenues that reflect the share of business conducted by these global companies on their territory. They’ve tried direct negotiations with companies, with mixed results. In the absence of common taxation rules applicable in all relevant jurisdictions for cross-border digital transactions, there have been several non-replicable, non-transparent individual deals between governments and companies. The companies have failed to achieve their aim of policy and tax predictability, governments have struggled to get the buy-in of companies for easily transposable settlements. You’d think the disparate approach to taxing internet-enabled business models and its impact on the distributional benefits of globalisation would provide an ideal opportunity for multilateral governance to demonstrate its effectiveness. The G-20, in summit declaration at Buenos Aires, has acknowledged the importance of a global deal on digital taxation. The Organization for Economic Cooperation and Development has advanced an agenda for a set of common rules. But multilateralism has so far failed to produce the consensus needed to address ongoing divisions—whether between companies and governments, or between nations like the U.S. and China, that have nurtured large digital companies, and the rest of the world, The failure of the multilateral track has now provided an opening for non-consensual and protectionist digital policies to emerge. What can be witnessed in this area is a race to the bottom. Following the example set by France, Turkey is seeking to tax digital companies at 7.5%, more than double the French rate. What’s more, the tax is to apply regardless of whether the companies are profitable or not. It is not clear whether the proposed measures comply with Turkey’s international obligations under the World Trade Organization, or under its bilateral tax treaties. Even if they are, there are concerns that a digital tax would serve as a disincentive for foreign investment in a booming industry where Turkey had succeeded in creating a dynamic ecosystem. Turkey is home to highly successful mobile-gaming creators, as well as Turkish-language Android and IOS apps.Even so, there’s a good chance the Turkish example will be followed by governments in other emerging nations that believe that the industrialized world—and by extension, the multilateral system—has for too long been unresponsive to their anxieties about the consequences of unfair globalisation. A fragmentation of global regulations affecting the digital economy is afoot.The multilateral institutions may have one last chance to stop the trend. The OECD is holding a stakeholders meeting this week to gather views on its proposed approach to taxing the digital economy. The plan is for a set of proposals to be formally adopted by the G-20 at its meeting in Riyadh next year. But any agreement will be conditional on the Trump administration demonstrating flexibility toward the expectations of the other OECD nations. The hope is that the U.S. will ultimately see that a set of common tax rules, even if it would impact the few American digital giants, would still be a better outcome for the global economy than a grab-bag of divergent approaches to regulating and taxing digital entrepreneurship.To contact the author of this story: Sinan Ulgen at firstname.lastname@example.orgTo contact the editor responsible for this story: Bobby Ghosh at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sinan Ulgen is the executive chairman of Istanbul-based think tank EDAM and a visiting scholar at Carnegie Europe in Brussels.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Nov.11 -- Brent Saunders, Allergan Chairman & chief executive officer discusses striking a balance between blockbuster therapies and steady growth. He speaks with Bloomberg's Caroline Hyde on 'Bloomberg Markets.'