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пятница, 7 июля 2017 г.

Samsung rides surging chip demand, Galaxy S8 sales to record quarterly profit

Samsung Electronics Co. topped analyst estimates with its best-ever operating profit as global demand for semiconductors remained strong and the new Galaxy S8 flagship smartphone won over customers.


Operating income rose to 14 trillion won (US$12 billion) in the three months ended June, the Suwon, South Korea-based company said in preliminary results released Friday. That compares with the 13 trillion-won average of analysts’ estimates compiled by Bloomberg. Revenue rose to 60 trillion won, compared with the 58.4 trillion won projected.


The world’s largest maker of phones and memory chips is counting on the Galaxy S8 to repair its reputation and regain ground lost to Apple Inc. and Chinese rivals following the demise of the Note 7 device last year. Samsung’s results, which include the first full quarter of sales form the marquee smartphone, shows it’s continuing to benefit from higher prices for the memory chips that go into mobiles and computers.


“Samsung’s been successful with cutting manufacturing costs for memory chips, and that’s been a big factor, while display sales helped to boost the earnings,” said Greg Roh, an analyst at HMC Investment Securities Co. “Chip prices will keep rising and another record operating profit is in sight for Samsung in the third quarter.”



The company is on track to earn about 15.2 trillion won in the third quarter on the back of Galaxy S8 sales, with annual profit of 54 trillion won this year, Roh said.


Samsung’s result could see it generate more profit in the second quarter than Apple. The U.S. company is expected to post operating income of US$10.5 billion, according to the average of analyst estimates, a typically weaker period ahead of the release of its new iPhones.


Shares of Samsung fell 0.6 per cent in early Seoul trade, paring this year’s gain to 32 per cent.


Samsung won’t provide net income or break out divisional performance until it releases final results later this month. It probably earned 7.5 trillion won in chips, 3.8 trillion won in mobile devices and 1.5 trillion won in displays such as organic light-emitting diode screens, Lee said.


The Korean electronics giant posted its best operating profit in the third quarter of 2013 when it earned 10.2 trillion won. While displays and semiconductors have picked up the slack since the Note 7’s recall, the company still gets a significant portion of revenue from smartphones. It hasn’t divulged Galaxy S8 numbers but reviews for the device, which features a bezel-less display and voice-enabled digital assistant, have been favourable. It may also have benefited from the usual lull before Apple releases a new iPhone, typically late in the year.


DDR3 4-gigabyte dynamic random access memory chips averaged US$2.97 in the second quarter, compared with US$1.58 a year earlier, according to data from InSpectrum Tech Inc.


Samsung may displace Intel Corp. as the world’s biggest chipmaker by sales this year, according to Lee Seung-woo, an analyst at Eugene Investment and Securities. It reclaimed its position as the world’s biggest smartphone maker in the first quarter, after losing the lead due to the Note 7 recall. The company is now counting on the S8 to threaten Apple and widen its lead over up-and-coming rivals such as Huawei Technologies Co. and Oppo.


“Rivals have failed to capitalize on the Note 7 debacle while Samsung has been raking in profits from semiconductors and displays,” Eugene’s Lee said before the results. “The favourable market in semiconductors will probably continue for some time.”


The company has seen its reputation tarred with the detention and trial of de-facto chief Jay Y. Lee, on charges he bribed a presidential confidante to secure support for a 2015 merger that cemented his control. The 49-year-old vice chairman denies the charges.


Bloomberg News

четверг, 6 июля 2017 г.

CEO says his Canadian streaming company is misunderstood

By Danielle Bochove


The head of Sandstorm Gold Ltd. is feeling misunderstood.


Shares in the Vancouver-based royalty and streaming company haven’t done much since it announced a deal in April to acquire Australia’s Mariana Resources Ltd. The complexity of the arrangement — in which Sandstorm will obtain a 30 per cent interest in the Hot Maden gold-copper project in Turkey — has been an issue for investors, Chief Executive Officer Nolan Watson said.


“Sometimes undervalued means not well understood,” he said in a telephone interview Wednesday. 


While some investors believe Sandstorm is acquiring a 30 per cent joint-venture stake in Hot Madden, the acquisition is actually closer to a royalty agreement with upfront capex payments, he said. And since Sandstorm will spin off all other exploration assets received through the cash-and-stock transaction, understanding the asset is key to properly valuing the deal, he said.


The transaction closed this week, freeing up Watson to discuss details that had been restricted under U.K. takeover law. The company plans to convert its stake in Hot Madden to a more straightforward mine streaming arrangement in the next six to 12 months, both to create clarity for investors and to secure possible tax benefits, he said.


Streaming and royalty deals have become increasingly popular sources of funding for miners in recent years. In exchange for upfront payments, the streamer receives the right to buy a portion of the mined metal at a discount over a future period of time.


Analyst reaction to the Mariana deal has been mixed. In a June 21 note, CIBC’s Cosmos Chiu wrote that incremental cash flow from the deal probably wouldn’t have an impact until at least 2021. Scotia Capital’s Trevor Turnbull was more optimistic, writing that it would be 13 per cent accretive to net asset valuation “on a conservative base case scenario.” Scotia rates the stock sector outperform, while CIBC has a neutral recommendation.


The shares sold off in the days after the deal announcement and have lagged peers Franco-Nevada Corp., Osisko Gold Royalties Ltd. and Wheaton Precious Metals Corp. in the equity market this year.


“Sandstorm really traded off partly because they weren’t able to discuss things,” Scotia’s Turnbull said by telephone Wednesday. The company is holding an investor conference Thursday and more color around the Mariana acquisition and its exploration potential could help it catch up to its peers, he said.


Production Doubling


Hot Madden is expected to begin producing in 2021, adding an additional 70,000 ounces to what would have been 65,000 ounces of gold equivalent production for Sandstorm by 2019, barring additional acquisitions, Nolan said in Wednesday’s interview.


“It’s basically a doubling of our production and we only had to dilute shareholders 19 per cent to do it,” he said, adding that the estimated 11-year mine life probably will be longer.


The company plans to buy back 5 per cent of shares over the next four to six months, reducing that dilution to 14 percent, he noted. “It’s a very, very accretive series of steps for shareholders.”


If the stock price stays low, Sandstorm will continue to buy back shares and if it rises, it will issue a dividend, Watson said. He declined to say at what level that switch would be made.


Streaming Climate


With a market value of about US$580 million, the company is still too small for most large generalist investors, who tend to not look at companies with a value of less than US$1 billion and only get “serious” about those over US$2 billion, Watson said. He expects Sandstorm will hit that $1 billion threshold in the next few years organically.


“We’ve been disproportionately hit by the GDXJ re-balancing and the arbitration funds coming in on the back of this deal,” he said. “And then gold falling.”


Traditionally used by early-stage exploration companies, streamers gained acceptance among large miners during the commodities downturn as metals prices plummeted. Glencore Plc, Teck Resources Ltd. and Barrick Gold Corp. were among majors that sold streams on top-tier assets to raise cash. However, as gold prices stabilized, those large deals have all but disappeared and there is some suggestion the market for smaller streams is also languishing.


Asked about the climate for streamers, Watson agreed that large deals are few and far between. When they do appear, competition is fierce and the final price tag high, he said, citing last month’s deal by Osisko for a large package of royalty and streaming assets as a case in point. 


“We’ve been looking for many, many years for a transaction that’s this material and this accretive and this is the first one we’ve come across,” Watson said, noting the company will likely return to smaller acquisitions typical of what it’s done in the past two years.


 


Bloomberg

Surfer who saved the world from WannaCry cyberattack is looking for next wave

The 23-year-old who saved the world from a devastating cyberattack in May was asleep in his bed in the English seaside town of Ilfracombe last week after a night of partying when another online extortion campaign spread across the globe.


Around 6 p.m. on June 27, Marcus Hutchins, a self-taught computer-security researcher and avid surfer, was awakened by a phone call from a colleague telling him another attack was underway. Dreading a return of the virulent WannaCry malware that he stopped in its tracks the previous month, Hutchins logged on to his computer in the house he shares with his parents and younger brother to scan the latest reports.


By then, more than 80 Ukrainian banks, government agencies and multinational firms including shipping giant A.P. Moller-Maersk A/S and Russia’s biggest oil company Rosneft PJSC had been hit by a ransomware attack spreading like an electronic plague across their networks. Within 20 minutes, Hutchins later recounted, he got hold of a sample of the malware and was relieved to see it wasn’t another WannaCry, which infected hundreds of thousands of computers in more than 150 countries, but something more targeted and less virulent.


Though both attacks took advantage of flaws in Microsoft Corp.’s Windows operating system to spread their payloads, WannaCry used the internet to propagate itself — each compromised computer would scan and infect another, creating a snowball effect — while the so-called Petya attack was confined to local networks. Petya appeared bigger at first because hackers hit Ukrainian software company M.E.Doc and used an automatic update feature to download its malware onto the computers of all users of the software, Hutchins said.


Unlikely hero


Researchers like Hutchins and his colleagues at Los Angeles-based threat-intelligence firm Kryptos Logic are akin to seismologists, scanning the internet for electronic tremors that could signal the next attack. This time he was only an observer, but on May 12 Hutchins stopped the WannaCry attack that crippled organizations from Britain’s National Health Service to Deutsche Bahn in Germany and Renault SA factories across Europe.



With a mop of curly hair, baggy jeans, T-shirt and sneakers, Hutchins is an unlikely hero. He rarely leaves rural north Devon, where he has lived since he was 8, and hadn’t traveled abroad until last year. He learned to program computers at 12 and was tracking and disrupting botnet attacks for his own enjoyment before anyone paid him to do so.


Hutchins started a blog under the pseudonym MalwareTech while still a teenager and was hired by Kryptos in 2015. He said his parents and friends didn’t even know he had a job until the WannaCry attack.


Cheesy chips


Hutchins was supposed to be enjoying a week’s holiday, but returning home after a lunch of burgers and cheesy chips with a friend and seeing the carnage WannaCry was inflicting, he couldn’t resist jumping in.


“The fact that so many NHS trusts were being hit at the same time was pretty much unprecedented,” Hutchins said in an interview a few weeks after the attack, drinking Coca-Cola in a hotel bar in Ilfracombe, a picturesque but faded tourist town. “That for me was a massive red flag, which showed that this thing was spreading on its own.”


Most ransomware, which encrypts files on a target machine to force its owner to make a payment in exchange for decryption, is spread via email attachments from rogue senders that infect host computers when they’re opened. Hutchins said he’d expect a handful of people to click on a mass email over a few days, not thousands of employees at scores of medical facilities at the same time.


Marcus Hutchins, digital security researcher for Kryptos Logic, works on a computer in his bedroom in Ilfracombe, U.K.


After analyzing a sample of the malware and seeing it spread by exploiting vulnerabilities in Microsoft’s network file-sharing protocols, he realized it was using a cyberweapon allegedly stolen from the U.S. National Security Agency. Known as “EternalBlue,” it was part of a cache of sophisticated NSA hacking tools targeting Microsoft software that were obtained by the Shadow Brokers criminal gang last year and leaked onto the internet in April.


Hutchins also noticed a quirk buried deep in the malware code. It tested for the existence of an unregistered nonsensical domain name. He promptly registered the domain for 8.5 pounds (US$11) and redirected all traffic to a server designed to capture malicious data, known as a sinkhole, which would allow him to monitor the progress of the attack.


Kill switch


Although he didn’t realize it at the time, Hutchins had inadvertently triggered the malware’s kill switch. Before infecting and encrypting a computer’s hard drive, WannaCry would query the domain, and as long as it remained unregistered would proceed with the attack. Now, when the malware checked the domain and found it active, it immediately shut down. About 100 million attempts to infect computers, including more than 7 million in the U.S., have been mitigated since then, according to Kryptos data.


“At the time, we were just like ‘Yay, we can track it now,’ we didn’t know that we’d stopped it,” Hutchins said. “The minute we registered the domain we were looking at like 5,000 or 6,000 unique systems all connecting, and it went up to 200,000 within an hour. I remember thinking: Holy shit, this is really big.”


Hutchins is part of a global community of online security researchers and bloggers who battle with hackers and cybercriminals from their home offices at all hours of the day and night. Given the wave of attacks in recent years, they’re in high demand from governments and corporations and can command six-figure salaries while still in their early 20s.


Hutchins said he has been courted by some of the world’s biggest cybersecurity firms. In 2015, he interviewed with Britain’s top-secret Government Communications Headquarters but went to work for Kryptos instead after it made him an offer he said he “couldn’t refuse.”


‘Great cyberwarriors’


“He’s a natural talent,” said Salim Neino, 33, Kryptos’s chief executive officer, who hired Hutchins after reading his blog. “He was obviously solving hard problems and he wasn’t doing it for monetary reward, and those are some of the key traits of great cyberwarriors.”


Neino, a self-taught programmer who got his first computing job at 15, co-founded Kryptos nine years ago. The firm doesn’t do any marketing and has no salespeople among its 25 employees.


Hutchins said he didn’t ask for a raise after WannaCry because he had just been given one. He wouldn’t say how much he earns, but money goes a long way in Ilfracombe, where 1 in 5 children comes from a family whose income is less than 60 per cent of the national average. He said he invests his earnings in stocks and bitcoin, and made thousands of pounds shorting the British currency after the country voted to leave the European Union last year.


Given the nature of his work and his tendency to sound off on social media without much of a filter, Hutchins had kept his online and real-world lives separate.


“No one knew on either side what the other side did,” he said.


Changed forever


WannaCry changed that forever. After registering the domain that Friday afternoon in May, Hutchins posted a link to it online so others could track the attack’s progress. Within a few hours it became clear that WannaCry had stopped self-propagating, and fellow researchers started tweeting that it was @MalwareTechBlog who had saved the day. Pretty soon he was being bombarded with thousands of emails and direct messages on Twitter from journalists and security companies wanting to know whether their clients had been infected.


Hutchins knew it was only a matter of time before his identity was blown and admits feeling a little scared.


A staff member monitors the spread of ransomware cyber-attacks at the Korea Internet and Security Agency (KISA) in Seoul


“Generally, you don’t want to advertise what you’re doing as you don’t want to piss off the bad guys,” Hutchins said. “We published the tracker not knowing we’d foiled it. Had I known that, I wouldn’t have publicized that it was me. Angry criminals are the worst criminals.”


For the next 72 hours, Hutchins went without sleep while fending off ever more aggressive attacks from hackers trying to take his servers offline to disable the kill switch and repropagate WannaCry.


Hutchins thinks that was mostly the work of low-level, semi-skilled hackers referred to in the industry as skids, or script kiddies. They aren’t in it for the money, he said, they just like causing as much trouble as possible.


‘Pretty shocked’


By Sunday, the British media had identified Hutchins as the man who stopped WannaCry, and the next day he had journalists camped outside his house, 170 miles from London, stuffing business cards through his letterbox and ringing the doorbell. At one point Hutchins jumped over the back wall of his yard and fled through a car park.


“When I was outed, my parents were pretty shocked and my friends still don’t believe that I have a job,” Hutchins said. “Being unmasked was pretty horrendous.”


Hutchins claims to not like people very much, but he’s affable and engaging. Several times during a walk around Ilfracombe’s harbor and through its narrow streets, friends and acquaintances called out greetings. He chafes at being identified as a hero and said he doesn’t have plans to move, though he did enjoy a recent trip to Copenhagen to give a speech at an industry convention.


“What we did with WannaCry was impressive in terms of the scale of what we stopped, but on a technical level all we did was register a domain,” Hutchins said. “My employer was already paying me way more than I was worth, so the whole WannaCry thing didn’t really change anything.”


Kryptos’s Neino is adamant that Hutchins deserves to be called a hero and warns that everyone should prepare for more attacks.


“We’re going to see a wave of these attacks if Shadow Brokers make good on their promise to release more exploits,” Neino said. “They’ve made good on every other threat, so there’s no reason to think they won’t this time.”


Petya was proof of more to come. After pulling another all-nighter, Hutchins said, he just wanted to go back to bed.


Bloomberg News

вторник, 4 июля 2017 г.

U. S. will try to intervene in Apple’s US$14.8 billion EU tax appeal, source says

The U.S. government has sought to intervene in Apple’s appeal against an EU order to pay back up to 13 billion euros (US$14.8 billion) in taxes to Ireland, a source familiar with the matter said on Tuesday.


iPhone maker Apple took its case to the Luxembourg-based General Court, Europe’s second-highest, in December after the European Commission issued the record tax demand saying the U.S. company won sweetheart tax deals from the Irish government which amounted to illegal subsidies.



The decision was criticized by the Obama administration which said the European Union was helping itself to cash that should have ended up in the United States. The Trump administration has not said anything in public about the case.


“I can confirm the United States filed an application with the European Union General Court to intervene in the case involving the retroactive application of state aid rules to Apple,” said the source, who declined to be named because of the sensitivity of the matter.


The General Court is expected to hear the case in late 2018, another source with knowledge of the matter said. Starbucks , Fiat Chrysler Automobiles and several other companies that were also ordered to pay back taxes to other EU countries have similarly challenged their EU rulings.


© Thomson Reuters 2017

‘I’m a creep’: A backlash is building against sexual harassment in Silicon Valley

The upheaval over sexual harassment in the technology startup industry mushroomed this week, with the resignation of a prominent Silicon Valley investor who said he had been “a creep” and more women saying they would come forward to talk about their experiences.


Dave McClure, the founder of startup incubator 500 Startups, said he was stepping down Monday after The New York Times reported last week that he had come onto a woman who was applying for a job at his firm. McClure apologized for his behaviour over the weekend, in a post titled “I’m a creep. I’m sorry.” Another partner at 500 Startups, Elizabeth Yin, also resigned this weekend, saying that she was quitting after the firm had covered up a separate harassment episode by McClure.


Several other startup investors have also issued mea culpas for not doing enough to prevent sexual harassment, with some around the world beginning to strategize over how to avert the episodes in the first place. The New England Venture Capital Association, a trade group, last week invited its members to sign an anti-discrimination and sexual harassment statement. In Australia, startup entrepreneurs also issued a statement condemning the behaviour.


And female entrepreneurs, emboldened by the support, have over the last few days become more willing to share their stories.


“Women are more empowered than ever to not tolerate these things,” said Sarah Kunst, chief executive of fitness startup Proday, who was propositioned by McClure after he had begun talking with her about a possible role at 500 Startups. Kunst said there were now “countless discussions” among women about speaking publicly about their experiences and how to end the behaviour.


Dave McClure, chief executive officer and founder of 500 Startups


The furor follows a string of revelations about how venture capitalists have mistreated women entrepreneurs over the years, an issue that was in the past largely swept under the carpet. The disclosures gained momentum after the implosion last month of a small venture firm, Binary Capital, whose partner, Justin Caldbeck, apologized to women after several spoke on the record about his behaviour. The Times also spoke to more than two dozen female entrepreneurs who described unwanted advances, touching and sexist comments by investors.


For years, the startup and venture capital industry — which is predominantly male — has been immune to criticism about its behaviour because the industry has created immense wealth by churning out hit companies, such as Facebook, Snap and Uber. The backlash now suggests that those successes are no longer enough to excuse the anything-goes conduct of some investors and entrepreneurs.


With more women willing to speak openly about harassment and discrimination, Kate Mitchell, a founder of a Silicon Valley venture firm, Scale Venture Partners, said the industry was facing “a tipping point.”


“The fact this behaviour is pervasive and what we know seems to be the tip of the iceberg has made us understand the difficulty and reality of our challenge,” Mitchell said. “Actions need to be more aggressive and more all encompassing than what I previously thought.”


But even as the movement to grapple with harassment gathers momentum, some venture capital firms are privately grumbling about having to deal with the issue, said some investors.


“Some men have the feeling that the conversation has turned into a witch hunt,” said Aileen Lee, a founder of Cowboy Ventures. “They’re asking when people will stop being outed.”


That attitude belies a lack of understanding about the issue, some entrepreneurs said. Even though “we’ve accepted why it’s so important for a boss to not hit on someone who reports to him, many people still don’t understand that those same power dynamics play out when founders seek to network or raise money,” said Kathryn Minshew, founder of the Muse, a company that helps women find jobs.


A few years ago, Minshew told Wired about how she had been treated in the startup ecosystem. Over the last week, she also told The Times that she had been harassed by male investors — whom she did not name — on multiple occasions.


Fotolia


In one instance, she met an investor at a conference and set up a time to discuss her company. That day, the investor’s assistant said he needed to move the meeting to the evening. At the meeting, he got very close to Minshew and put his arm around her. In another instance, an investor suggested the two sleep together after his firm had signed an agreement to invest in Minshew’s company, but before the cash was in the bank. She was unable to accept his money after that episode, which jeopardized her ability to fund her company.


“It feels like the industry’s acceptance and tolerance of this behaviour is changing,” Minshew said. “I really appreciate how people in the industry are standing up and saying no, this isn’t OK.”


At 500 Startups, McClure’s resignation was spurred not only by Kunst’s coming forward, but by a separate internal report this April that said he had sexually assaulted an employee, according to a resignation letter by Yin, the 500 Startups’ partner who stepped down over the weekend. Her letter was obtained by The Times.


The sexual assault claim moved 500 Startups’ management to remove McClure from day-to-day operations of the firm in May, according to Yin’s letter. But employees were told the change happened because of growth issues, according to the letter. McClure continued to be active in the company’s Slack channels, weighing in on firm decisions, according to screenshots of the conversations that were reviewed by The Times.


After The Times reported on McClure last week, he wrote on the 500 Startups’ Slack channels that he had “not assaulted anyone (that I’m aware of).” Aman Verjee, chief operating officer of 500 Startups, also told colleagues and employees that there had been “no formal finding of harassment” and “no legal complaint against 500 or Dave.”


Investors in 500 Startups were not alerted to the change in management at the incubator until after The Times published the information on McClure and Kunst, according to Brad Feld, an investor in 500 Startups. The firm also said Friday in an email to investors, which was obtained by The Times, that McClure “will continue to be a significant contributor to the future success of 500.”



On Saturday, McClure posted his public apology. “My behaviour was inexcusable and wrong,” he wrote.


But that day, the firm’s leaders held a heated phone conversation, in which McClure admitted to initiating unwanted physical contact with the unidentified employee, according to Yin’s letter.


Yin declined to comment. McClure did not immediately respond to a request for comment. Axios earlier reported Yin’s letter.


In a statement Monday, 500 Startups said that it learned of “allegations related to inappropriate behaviour by Dave McClure” in April, and that it immediately began an internal investigation, which led to McClure’s stepping back from responsibilities. “Due to the sensitivity of personnel issues and the privacy of all involved, the investigation was kept confidential,” the firm said.


In her letter, Yin wrote, “I cannot support the lack of transparency and propagation of misinformation at the management level at this company.”


More revelations emerged against McClure on Monday. Cheryl Yeoh, an entrepreneur in Malaysia, posted online about being propositioned by McClure in 2011 and assaulted in 2014.


“If someone uses their power as a VC to make repeated sexual, physical advances on women in a professional context, that goes way beyond being a creep,” she wrote.


In response, 500 Startups said, “We appreciate Cheryl speaking up and realize how upsetting and painful it is for her to have gone through that experience and have the courage to speak up.”


The New York Times

пятница, 30 июня 2017 г.

Trump vs Trudeau: Canada lures Silicon Valley with promise of skilled labour, funding and diversity

By Natalie Wong


Silicon Valley startups are tapping into Toronto’s tech talent.


Okta Inc., which JPMorgan Chase & Co. calls one of the fastest growing public software firms, opened a 60-seat office this month on trendy King Street West. Lured by a deepening pool of engineers in a city routinely ranked among the world’s most innovative, the company is following peers such as Uber Technologies and Amazon.com across the border.


Okta chose Canada’s biggest city because it’s home to the University of Toronto and is near the University of Waterloo, which are “educational sector leaders in developing future tech leaders,” said Armen Vartanian, vice president of global workplace services. “With respect to the talent supply that’s there, this is effectively a no-brainer for us.”


A big draw for start-ups is a jump in potential graduates as U.S. President Donald Trump’s policies divert foreign students to Canada. Sensing an opportunity to wean his economy away from a reliance on commodities, Prime Minister Justin Trudeau is offering fast-track visas to high-skilled workers and increasing funding for innovation.


Trudeau’s administration clarified on June 12 that only firms growing 10 per cent to 20 per cent can avail of a new program that brings high-skilled foreign workers into the country in as little as two weeks, effectively ringfencing the approvals for the tech sector.



He has also extended a popular venture capital financing program started by the previous government and added another $950 million to spread around tech hubs in Canada. He gave $125 million specifically to support the country’s budding artificial intelligence research programs.


“The tech innovation ecosystem in Toronto has just been blowing up,” said Bilal Khan, founding managing director of OneEleven, a startup accelerator backed by OMERS and Royal Bank of Canada, that’s played home to successful Canadian tech companies including Wealthsimple and Big Viking Games. “This is a government that gets it, that’s willing to invest both time and support to build out the ecosystem.”


Meanwhile American applications to Canadian tech companies are increasing following the election of Trump. Shopify Inc. reported a 40 per cent increase in the first quarter of 2017 over all of 2016, and Zoom.ai Inc. saw a 31 per cent rise from nearly zero for engineering roles, Karen Greve Young, vice president of partnerships at MaRS Discovery District, another Toronto tech incubator, told Bloomberg TV Canada.


Uber last month hired University of Toronto Associate Professor Raquel Urtasun to lead its first non-U.S. branch of the Advanced Technologies Group at the MaRS Discovery District. In a blog post, Travis Kalanick, former CEO and co-founder, said “Toronto has emerged as an important hub of artificial intelligence research, which is critical to the future of transportation.”


Shares of San Francisco-based Okta, the US$2.2 billion company that helps companies secure their internal communications, rose more than 38 per cent when they debuted this April and are trading 37 per cent above their offer price.


Back in the city’s schools, students cite career prospects and diversity as an important plus for Toronto. That’s especially true “at a time when there is political turmoil in other parts of the world,” Daksh Sikri, an Indian-born recent engineering graduate from the University of Toronto, told the campus newspaper.


Rival University of Waterloo is overseeing a $88 million building project to accommodate 1,200 more engineering students. Some C$33 million of this was funded by the federal government, said Pearl Sullivan, Waterloo’s dean of engineering.


Talented job applicants are receiving multiple offers from competing companies, a precursor to increased salaries, according to OneEleven’s Khan. Meanwhile employers applied for about 16 percent fewer U.S. H-1B visas for highly skilled workers this year than in 2016, possibly reflecting concern that the Trump administration is taking a more restrictive approach to the program.


“Words matter,” Khan said, referring to Trump’s protectionist rhetoric and growing sentiment that the U.S. is closing to immigrants. “It’s incredible because at that exact moment, Canada threw its doors wide open.”


Bloomberg News

среда, 28 июня 2017 г.

Microsoft president pushes Vancouver-Seattle tech corridor despite NAFTA doubt

VANCOUVER — The president of Microsoft is pushing to make a Vancouver-Seattle technology corridor a success, despite the uncertainty around cross-border trade posed by the administration of U.S. President Donald Trump.


Brad Smith was in Vancouver on Wednesday to promote the Cascadia Innovation Corridor, an agreement signed by British Columbia and Washington state that aims to grow high-tech industries and strengthen collaboration across the region.


Speaking to reporters after a speech to the Greater Vancouver Board of Trade, Smith said the company was optimistic about investment in Canada, despite the possibility of Trump’s administration renegotiating North American Free Trade Agreement to impose levies on goods flowing across the border.



“First, the issue is not without risk, but the world is not without risk. We don’t really have an alternative that says, ‘Let’s only focus on the places that have no risk,’ because I’m not sure there are any such places,” he said


“Second, we do bring to the whole issue some sense of optimism. As Prime Minister (Justin) Trudeau has pointed out, NAFTA has been revised and improved over 15 times since it was initially signed. I’d almost go so far as to say evolution and improvement have been an inherent part of a healthy trading agreement.”


Trudeau has been attempting to lure foreign investment in Canada’s growing technology sector, including through a visit to the Seattle area last month to attend the closed-door Microsoft CEO Summit and to meet with Washington Gov. Jay Inslee. Trump’s “America First” rhetoric poses a challenge, but his restrictive immigration policies could draw more talent north, experts have said.


Smith said he was optimistic that “common sense will prevail” on NAFTA. He said he has already made the point to lawmakers in Washington, D.C., that there are 13 states that border Canada and they share not only economics, jobs and trade, but also culture and a sense of concern about their neighbours.


The company opened its Microsoft Canada Excellence Centre in downtown Vancouver last June to considerable fanfare, attracting the prime minister, B.C. Premier Christy Clark and Vancouver Mayor Gregor Robertson. It now employs more than 600 people, although some are skilled foreign workers destined to be transferred the U.S.


Asked whether Trump’s “travel ban” on citizens of six countries makes Vancouver a more attractive destination for Microsoft employees, Smith said the Supreme Court’s ruling allowing entry of those who have a “bona fide relationship” with a person or entity in the U.S. will ease the impact on business.


But he praised Canada for boosting its immigration quota to 300,000 in 2017, prioritizing migrants with talent and fostering a sense of stability.


“One of the many strengths of Canada right now is the way it has made itself a friendly destination for talented people all over the world,” he said.


Clark and Inslee signed the Cascadia Innovation Corridor agreement last September, promising to grow high-tech, life sciences, clean technology and data analytics industries across borders and foster ties throughout the region with joint action in research, education, workforce development and transportation and investment.


During his speech to the board of trade on Wednesday, Smith outlined some of the progress that has been made, including a memoranda of understanding between three cancer centres and a cross-university urban analytics research program.


Washington has also allotted US$1 million toward a feasibility study for a high-speed rail link between Seattle and Vancouver.


Smith also urged Vancouver to become a hub for “mixed reality.” The term refers to virtual reality technology that merges with a person’s surroundings, rather than creating an entirely separate environment.


He said the estimated revenue for mixed reality video games, including both hardware and software, is expected to top $12 billion by 2025, and noted Vancouver already has a thriving video game industry with more than 17,000 employees in 3D technology.


The Canadian Press