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A new proposal involving Oracle and Blackstone to take over TikTok’s US operations is under review. With a potential ban on the line, political and regulatory uncertainty could reshape TikTok’s future and influence broader US-China tech dynamics. The Situation President Trump is set to review a proposal this Wednesday to force a  divestment of TikTok’s US operations  from its Chinese parent ByteDance Ltd. The plan reportedly involves a  joint venture led by Oracle Corp. and Blackstone Inc. , with Oracle offering to manage US data security. A key point of contention:  TikTok’s algorithm may remain under Chinese control , a potential loophole in the eyes of US lawmakers. Why This Matters Deadline Pressure : ByteDance must finalize a sale by  April 5 , or face a US ban. Trump has indicated he may  extend the deadline , but no formal decision has been made. Security Risk Debate : While Oracle would secure US data, critics say  leaving the algorithm with Ch...

Intel’s   $7.86 billion subsidy   from the   US government   comes with significant restrictions on its ability to sell stakes in its chip manufacturing unit,   Intel Foundry , if it becomes an independent entity. The deal is part of a broader   $39 billion US initiative   to boost   domestic chip production , benefiting companies like   Intel   and   Taiwan Semiconductor Manufacturing Co (TSMC) . Key Restrictions on Intel Foundry: Intel must maintain at least  50.1% ownership  if the unit is spun off into a private subsidiary. If  Intel Foundry  goes public, Intel must remain its largest shareholder and cannot sell more than  35% to any single shareholder  without triggering  change-in-control provisions . Any control changes would require  US Department of Commerce approval , as per the terms of the subsidy. Impact on Intel’s Plans: Intel CEO  Pat Gelsinger  announced plans in Sept...

President-elect Donald Trump’s pledge to impose tariffs on the United States' largest trading partners—Canada, Mexico, and China—has sent shockwaves through the auto and tech industries, as companies with significant operations in Mexico brace for potential trade wars. Impact on Asian Automakers Honda Motor : Ships  80% of its Mexican production to the U.S. . COO Shinji Aoyama warned that permanent tariffs could force the company to reconsider its manufacturing footprint. Nissan Motor : Operates two plants in Mexico, producing  505,000 vehicles in the first nine months of 2024 , including models like the Sentra and Versa for the U.S. market. Toyota Motor : Manufactures the  Tacoma pick-up truck  exclusively in Mexico, exporting  230,000 units to the U.S. last year , representing  10% of its U.S. sales. Mazda : Exported  120,000 vehicles  from Mexico to the U.S. in 2023, with President Masahiro Moro stating that tariff resolutions require broader c...

  A selloff in major technology companies dragged down US stocks on Monday, as investors reacted to geopolitical concerns and adjusted bets on the Federal Reserve's next move , anticipating a smaller rate cut . The S&P 500 fell 1%, breaking a four-week winning streak. Alphabet Inc. sank 2.4% after a judge ruled it must lift restrictions on rival marketplaces competing with its Google Play Store. Meanwhile, Brent crude surged past $80 a barrel amid rising tensions in the Middle East . Friday’s stronger-than-expected US jobs report sparked a shift in market sentiment, dampening hopes for a larger rate cut from the Fed. Treasury yields rose, with the 10-year yield topping 4% . Chris Larkin from E*Trade noted that the jobs report not only lowered expectations for a significant rate cut in November but also raised the possibility of the Fed leaving rates unchanged if economic data continues to surpass forecasts. Energy stocks were one of the few sectors that gained, while t...