According to blockchain data, a major Cambodian payments firm, Huione Pay, received over $150,000 in cryptocurrency from a digital wallet linked to the North Korean hacking group Lazarus. The funds were sent between June 2023 and February this year from an anonymous wallet used by Lazarus to launder money stolen from three crypto companies through phishing attacks. The FBI reported that Lazarus stole around $160 million from Atomic Wallet, CoinsPaid, and Alphapo last year to fund North Korea’s weapons programs.
Huione Pay, based in Phnom Penh, stated it was unaware of receiving funds indirectly from the hacks and cited multiple transactions between its wallet and the source as the reason. The company declined to explain why it had received the funds or provide details on its compliance policies. Despite blockchain tools allowing companies to identify high-risk wallets, Huione Pay claimed it had no control over the anonymous wallet’s transactions.
The National Bank of Cambodia (NBC) prohibits payment firms like Huione Pay from dealing with cryptocurrencies due to risks like money laundering and financing terrorism. The NBC indicated it might take corrective measures against Huione Pay. Meanwhile, US blockchain analysis firms reported that Huione Pay was among several platforms receiving stolen crypto, which was converted into different currencies, including tether (USDT), to obscure the money trail. Southeast Asia has become a hotspot for high-tech money laundering and cybercrime operations, highlighting the need for stronger regulatory measures.
Taiwan Semiconductor Manufacturing Co (TSMC), the leading producer of advanced chips for AI applications, is set to report a 30% rise in second-quarter profit on Thursday, driven by soaring demand. The world’s largest contract chipmaker, which counts Apple and Nvidia among its clients, has seen its stock—and the broader Taiwan market—reach record highs. Last week, TSMC’s American Depositary Receipts surpassed a trillion-dollar market value.
For the quarter ending 30 June, TSMC is expected to announce a net profit of T$236.1 billion ($7.25 billion), a significant increase from the T$181.8 billion reported in the same period last year. The company recently reported a substantial rise in second-quarter revenue, exceeding market expectations. Analysts like Li Fang-kuo from President Capital Management Co. anticipate a strong third-quarter outlook for all of TSMC’s products.
TSMC is heavily investing in expanding its production capacity, including spending $65 billion on three new plants in Arizona. However, the majority of its manufacturing will remain in Taiwan. The company is expected to maintain its capital expenditure guidance for this year at $28 billion to $32 billion, with 70% to 80% allocated to advanced technologies. KGI Securities’ Chu Yen-min suggests TSMC raise its capital spending due to favourable market conditions, which could further boost its stock price and support the broader market.
Why does this matter?
TSMC, often called the ‘sacred mountain protecting the country’ for its crucial role in Taiwan’s economy, remains a dominant player in the semiconductor industry despite challenges from Intel and Samsung. The AI boom has significantly increased TSMC’s stock price, which has surged 75% this year, outpacing the 33% gain in the broader market.
Bitcoin surged to a two-week high on Monday following the attempted assassination of US presidential candidate Donald Trump. Trump, who was shot in the ear during a rally in Pennsylvania, is recovering well, according to his campaign. The attack is seen by some investors as boosting his chances of winning the upcoming election, leading to increased trades betting on his victory.
The cryptocurrency saw an 8.6% rise, reaching $62,508, with a session high of $62,698, marking a 47% annual gain. Ether also experienced a boost, climbing 6.8% to $3,322. Trump has criticised Democratic efforts to regulate the crypto sector and positioned himself as a pro-crypto candidate, which has resonated with the market.
Market analyst Tony Sycamore from IG noted that the assassination attempt has significantly bolstered Bitcoin, adding that the cryptocurrency could see further gains. Trump is set to speak at the Bitcoin 2024 conference in Nashville on 27 July, a move likely to keep the crypto market’s focus on his campaign. Despite a rocky start to July, Bitcoin’s recent rebound suggests it could approach $65,000 by the end of the week.
Wiz, founded in Israel and now headquartered in New York, is known for its cloud-based cybersecurity solutions powered by AI. With about $350 million in revenue in 2023 and serving 40% of Fortune 100 companies, Wiz has quickly become one of the fastest-growing software startups globally. Recently, Wiz raised $1 billion in a funding round, valuing the company at $12 billion.
The potential acquisition comes amid increased regulatory scrutiny of large tech companies under President Joe Biden‘s administration. Despite the investigation, the technology sector has seen a surge in mergers and acquisitions, with tech deals jumping over 42% year-on-year to $327.2 billion in the first half of the year. Alphabet’s interest in Wiz follows its decision not to pursue a takeover of online marketing software company HubSpot.
India’s antitrust body, the Competition Commission of India (CCI), has concluded its investigation into Apple’s practices within the Indian app market, finding the tech giant engaged in abusive conduct. According to a confidential report viewed by Reuters, the CCI alleges Apple exploited its dominant position in the iOS app ecosystem by mandating developers to use its proprietary in-app purchase system. This requirement, the CCI asserts, limits competition and imposes unfair terms on developers who rely on Apple’s platform to reach consumers.
The 142-page report highlights Apple’s significant influence over digital products and services distribution through its App Store on iOS devices. It describes the App Store as a crucial channel for app developers, who must comply with Apple’s terms, including its billing and payment system. Both Apple and the CCI declined to comment on the report’s findings.
The CCI report marks a pivotal phase in India’s investigation, pending review by senior officials. It could result in fines and directives for Apple to revise its business practices. The case originated from complaints by a non-profit group and Indian startups, alleging Apple’s practices stifle competition and inflate costs for developers and consumers.
Why does this matter?
The investigation mirrors the heightened scrutiny Apple faces globally. In June, the EU regulators accused Apple of breaching antitrust laws, potentially leading to substantial fines. Apple is also under investigation for new fees imposed on developers, responding with plans to allow alternative app distribution in the EU under the Digital Markets Act.
The report underscores the regulatory pressure tech giants face worldwide, with similar antitrust actions targeting Google in India over its in-app payment policies. As the CCI deliberates its next steps, Apple’s market practices remain a focal point amid broader concerns over fair competition in the digital economy.
Chinese e-commerce faces survival challenges amidst slowing growth and increasing price pressures as platforms vie for cost-conscious consumers with aggressive sales tactics. The once-booming sector, characterised by extravagant shopping events, is now strained by a sluggish economy constraining consumer spending.
Lu Zhenwang, an e-commerce operator, predicts tough times, noting intense competition and dwindling profit margins across major platforms like Alibaba and JD.com, as well as for smaller businesses. Despite e-commerce’s significant role, accounting for 27% of retail sales in China, growth is expected to shift from double-digit to single-digit figures due to economic slowdowns.
Platforms’ aggressive sales strategies, such as high return rates and discount events, are under scrutiny. During the ‘618’ event, retailers like Inman protested against policies forcing them to bear return costs, leading to soaring return rates and financial strain. Such challenges exacerbate existing pressures, including high traffic acquisition costs and direct factory-to-consumer sales, cutting retailers’ profits.
E-commerce operators and analysts highlight that the industry’s landscape has fundamentally changed, with no foreseeable sales growth amid fierce competition and stagnant consumer incomes. Despite the challenges, platforms remain silent on these criticisms, leaving vendors to navigate an increasingly complex operating environment in China’s e-commerce sector.
Tata Consultancy Services saw its shares rise nearly 3% following its first-quarter results, signalling a potential turnaround for India’s IT services sector, which has faced sluggish demand. The IT index also surged 3.4%, its highest level since January 2022, reflecting positive market sentiment.
Analysts from Macquarie noted that TCS showed signs of recovery, particularly in its crucial North American market. They believe the worst may be over for the company as it navigates global economic challenges and anticipates a possible interest rate cut cycle later in the year.
Despite challenges like high interest rates and geopolitical uncertainties impacting tech spending globally, TCS reported growth across all verticals except telecom. Jefferies analysts highlighted TCS’s robust performance and noted a significant uptick in net hiring, indicating a positive trend.
TCS CEO K Krithivasan expressed cautious optimism about fiscal year 2025, citing volatile market conditions. Following the earnings report, several brokerages raised their price targets for TCS stock, with expectations pointing to continued growth momentum.
The day’s trading boosted TCS’s year-to-date gains to over 8%, outpacing the broader IT index’s rise of 7.5%. Analysts have upgraded TCS’s rating, with many now recommending a ‘buy,’ while peers like Infosys and Wipro hold similar ratings amidst competitive valuation comparisons.
SoftBank Group, the Japanese multinational investment holding company, has acquired Graphcore, a British AI chipmaker, in a strategic business move that ends speculation about Graphcore’s future amid financial struggles. Once positioned as a competitor to Nvidia, Graphcore has faced challenges securing sufficient investment despite its technology potential.
Graphcore, valued at $2.77 billion in 2020, had been grappling with financial viability, including layoffs and operational closures. CEO Nigel Toon acknowledged the company’s difficulties but expressed optimism about the deal with SoftBank, highlighting the substantial resources it brings.
Toon emphasised the significant investment from SoftBank, noting its transformative impact on Graphcore’s global competitiveness. However, he pointed out structural barriers in the UK tech industry, such as limited domestic investment from pension funds, hindering growth opportunities.
Regarding potential collaboration with SoftBank-owned Arm Holdings, a leading chip designer, Toon indicated Graphcore’s intention to leverage synergies within SoftBank’s portfolio, although specifics were not disclosed.
Republican lawmakers have requested an intelligence assessment from the Biden administration regarding Microsoft’s $1.5 billion investment in UAE-based AI firm G42. Concerns have been raised over the potential transfer of sensitive technology and G42’s historical ties to China. Representative Michael McCaul and John Moolenaar, leaders of key committees, have called for a briefing with White House national security adviser Jake Sullivan before the deal progresses.
The lawmakers highlighted the need for clear regulations on exporting sensitive AI models, fearing that such technology might be shared with adversaries like China. They have requested an assessment of G42’s connections to China’s Communist Party and government. The probe follows a recent visit by UAE President Sheikh Mohamed bin Zayed Al Nahyan to Beijing, where AI cooperation was discussed.
Microsoft has stated that it works closely with the US government to prioritise national security. The White House National Security Council confirmed ongoing dialogue with lawmakers to address the risks associated with digital infrastructure. Meanwhile, G42 and the UAE embassy have not commented on the matter.
Why does this matter?
Concerns about China’s influence in the Middle East persist despite G42’s claim that it divested Chinese investments and accepted US constraints to collaborate with American firms. The New York Times reported that the Microsoft deal, influenced by the Biden administration, aimed to limit China’s technological reach. The Commerce Department is also considering rules to restrict the export of proprietary AI technology to ensure national security.
The EU Commission has announced that Apple will open its near-field-communication (NFC) technology to third party developers, including competitors. Rival mobile wallet providers will now be able to use this technology as well, giving them access to a new market of users. Companies other than Apple will also be able to access tap-and-go services which use NFC technology. This means they will have access to technologies for things like digital wallets, house and car keys, security badges, loyalty cards, and event tickets.
“We have offered commitments to provide third-party developers in the European Economic Area with an option that will enable their users to make NFC contactless payments from within their iOS apps, separate from Apple Pay and Apple Wallet,” Apple said in an emailed statement to Reuters. EU antitrust chief Margrethe Vestager noted that ‘consumers will have a wider range of safe and innovative mobile wallets to choose from.’
After the EU shared its concerns on Apple’s market dominance in May 2022, Apple decided it would settle the case and determined a first set of commitments. Commission market-tested these commitments between 19 January 2024 and 19 February 2024, consulting all interested third parties to verify whether they would remove its competition concerns. After this process, Apple came up with a second round of commitments which the EU turned into law. This way, Apple avoided a violation of the EU’s antitrust laws and a fine.
Apple’s decision to settle the EU antitrust probe stands out given the company has pushed back against the EU competition watchdog on other occasions. Besides this case, it is currently facing a number of investigations under the Digital Markets Act (DMA) over its business practices. It recently received a €1.8 billion fine, which it is currently appealing.
