Page 25 - ARUBA TODAY

BUSINESS Tuesday 14 March 2017
A25

Big week for markets: Brexit, Making autonomous car play:

Fed and elections will collide Intel offers $15 billion for Israel’s Mobileye

PAN PYLAS jor automakers and parts
Associated Press suppliers, Kona said. “They
LONDON (AP) — Investors around the world are brac- have captured a piece
ing for a series of events this week that could poten- of what should be a fast-
tially cause waves in markets. And, for once, they’re growing market.”
not directly about U.S. President Donald Trump. Intel and Mobileye are tar-
From the expected launch of Britain’s exit from the geting an array of sensors
European Union to the Federal Reserve’s discussion and camera systems that
of another interest rate hike, there’s a lot that could are expected to generate
cause volatility and even put a brake on the so-called annual sales of $10 billion
Trump Bump, the months-long rally in stocks. by 2022, quintupling from
“This week is most unusual from a macro point of view about $2 billion this year,
as there is a heavy concentration of ‘event risk’,” said IHS estimated. Mobileye
Neil MacKinnon, global macro strategist at VTB Capi- controls about 70 percent
tal. of the world market for
Here are a few of the biggest events. driver assistance systems
The Mobileye logo appears on a screen at the post where it such as automatic braking,
BREXIT BEGINS? trades on the floor of the New York Stock Exchange, Monday, lane centering and pe-
Brexit could become a binding, irreversible fact this March 13, 2017. Intel will buy Israel’s Mobileye in a deal valued destrian detection. IHS ex-
week. at just over $14 billion, the latest push by a major tech company pects as many as 21 million
Since Britain voted to leave the EU last June, nothing to advance autonomous vehicles that could change the way autonomous vehicles to be
happened apart from a sharp fall in the pound. But traffic moves globally. sold by the year 2035.
that period of calm is due to end, with the govern- (AP Photo/Richard Drew) But there are still a number
ment expected to trigger, as soon as Tuesday, the for- TOM KRISHER autonomous test fleet. of obstacles to overcome.
mal process by which the country leaves the bloc it’s AP Autos Writer The combination with Intel Companies still haven’t
been part of since 1973. DETROIT (AP) — Comput- adds hardware, more soft- aren’t certain how the cars
Triggering the so-called Article 50 of the EU treaty be- er chip maker Intel paid ware expertise and data will drive in snow or other
gins two years divorce negotiations. They will focus on handsomely for a piece of centers that the compa- bad weather, and it will
how Britain leaves the bloc and on creating a new the next big thing Monday nies say will hasten deploy- be difficult for cars to be
trade deal with the EU, its main export market. as it offered more than $15 ment of autonomous tech- programmed to handle
It’s unclear how big the market reaction may be to billion for Mobileye, an Is- nology, including wider use numerous local traffic cus-
the announcement of the Article 50. Traders will have raeli company at the fore- of automatic emergency toms. Also, no one really
come to expect it to happen eventually, which could front of autonomous ve- braking and other technol- knows yet when the cars
mean the pound doesn’t drop too sharply on the day. hicle technology. ogies that already are on will be safe enough to re-
In the longer-term, however, it means British markets The purchase, scheduled the roads. move human backup driv-
will be subject to a daily barrage of headlines on how to close by year’s end, cre- Automakers and some ers.
the negotiations are going. ates another major player technology companies are The rise of mobile devices
in self-driving technology testing autonomous vehi- caused a decline in the
FED IN FOCUS as traditional automakers cles in California, Michigan personal computer mar-
U.S. rate-setters are set to sanction another quarter and tech companies vie and a few other states. ket and undercut Intel’s
point interest rate increase at the conclusion of their to put the cars into public Mobileye has partnerships growth and influence in
two-day meeting on Wednesday, which will take the use. Most companies have with many of them, includ- the technology business.
benchmark Fed rate up to a range of 0.75 - 1.00 per- predicted autonomous ve- ing testing cars with Intel Now Intel is expanding
centage point. That won’t be a surprise — it’s a near hicles will be carrying peo- and BMW. into other potentially fertile
unanimous opinion among experts in the markets fol- ple in the next three-to-five The Mobileye deal will help fields.
lowing a raft of positive economic news, including last years. put Intel in the driver’s seat Besides setting its sights on
Friday’s stronger than anticipated payrolls report. The big investment by In- in terms of supplying vital the still-nascent driverless
There will be more interest in what Fed Chair Janet tel validates predictions parts of autonomous ve- car market, Intel also has
Yellen says in her subsequent press conference and that autonomous cars will hicles, said IHS Markit ana- been investing in wearable
whether she will indicate that there are more hikes to someday come in large lyst Akhilesh Kona. Besides computers, such as smart-
come this year. “The expectations that the Fed will numbers, signifying a sea Mobileye’s technology, In- watches, as well as drones.
hike three times this year has been rising in recent change in the way we all tel is gaining access to ma- q
weeks and the market will be watching the central get around, said Timothy
bank’s statement closely for any signs that another Carone, a Notre Dame
move could follow in June,” said Jane Foley, a senior University professor who
strategist at Rabobank International. has written about the fu-
The Fed isn’t the only central bank meeting this week ture of automation. “Major
— the Bank of Japan, the Swiss National Bank and the players are finding ways
Bank of England will all reconsider their monetary poli- finding ways to position
cies, potentially moving markets. themselves for a change
as seminal as the personal
DUTCH ELECTIONS computer revolution,” he
In Europe, another key focus will be Wednesday’s said.
general election in the Netherlands, and how well Jerusalem-based Mobil-
populist anti-EU forces do. eye, which makes software
The vote comes at a time of acute tension between that processes informa-
the country and Turkey after Turkish ministers were tion from cameras and
prevented from campaigning in the Netherlands re- other car sensors to de-
garding a referendum in Turkey. That prompted Turk- cide where the cars should
ish President Recep Tayyip Erdogan to claim that “Na- steer, has products on just
zism is alive in the West.”q about every automaker’s