Public opinion is swinging against tech monopolies (September 26)

The battle between technology monopolies and governments has only just begun. This is not designed to stifle innovation, but to make sure that the interests of citizens and the profit motive of these companies are aligned.

Yes because these assets compete with longer duration assets. We have seen examples of this via Australian banks where investor use them as an alternative to fixed income. Bond proxies only work if back end rates remained anchored due to stable inflation expectations. for the thesis to hold, I have to be right about the long-term inflation outlook being stable.

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I think it will likely be an organic decline rather than an initial market shock. The first phase of the move is that the stock stop re-rating which has been a major catalyst for global equity strength. While the regulatory will continue to deteriorate, it's all about earnings until we start see real legislative action.

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This is all in the natural evolution of businesses. First come ambition and innovation, and with it the push into grey areas of regulation and ethical behavior (and sometimes even plain black, with allowing foreign entities to advertise for political causes (deplorably denied!)). It's the entrepreneurial spirit. Then these businesses overplay their hand, the bucket spills over with frustration from numerous sources, and the regulators step in.

Now is the time for these companies to start giving back, really give back. I read an argument that AMZN should consider Detroit for their second HQ, to revive that city, and several more examples can be thought of (be proactive in paying some tax, maybe?. Since 2008 Walmart paid 64x more taxes than Amazon).

I think these guys are really more scared of the EU. If the EU really steps up their regulation, and at the same time the FANGs start giving back in the US, it will be interesting to see if this leads to friction between the EU and US, defending their new national champions. Trump on the barricades with Zuck, that will be the day!

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the Walmart tax statistic is amazing

Quebec is leveling the playing field for Uber.

" Québec’s local government announced some new policies for Uber and its drivers, such as requiring Uber drivers to go through a 35-hour training session, which is something local taxi drivers must complete. The government also wanted Uber drivers to undergo mandatory car inspections every year, as well as background checks conducted by law enforcement officials. "

And Uber says, meh, we don't like an even battle...

Uber is pulling out of Québec due to regulatory issues
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Prosecuting big US technology companies is not without precedent. Microsoft waged a court battle against the US government for 21 years. The initial case was against Microsoft's bundling of its Internet Explorer browser software with its Microsoft Windows operating system. Below is an interesting summary of the company's saga. http://www.seattletimes.com/business/microsoft/long-antitrust-saga-ends-for-microsoft/

Long antitrust saga ends for Microsoft

a thoughtful piece from today's financial times

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