Auquan's Weekly Wrap | 8 - 12 August: What you might have missed

Recap of the week's market activity: China chip industry corruption, economic impact of European heatwaves, Amazon's iRobot acquisition and approval for Baidu's selfdriving taxis.

Auquan's Weekly Wrap | 8 - 12 August: What you might have missed
Source: Shutterstock. 

Top Themes

China Chip Industry Corruption

Source: Getty Images.

Among three other top industry executives, the CEO of China Integrated Circuit Industry Investment Fund, nicknamed the “Big Fund,” had been arrested for “suspected serious violations of the law.” As the fund was driven by a political mission (and vulnerable to current corruption chaos ensuing), analysts say China may now strongly reconsider how it invests in chip development. This could be a positive shift from limited politically driven funding to more market-based management utilising more precision and professional knowledge.

European Heatwaves Economic Impact

Source: Getty Images.

With extreme heatwaves and drought conditions hitting Europe, crop yield is suffering - particularly for olive oil and wine production. Not only are UK households facing hosepipe bans, further inflationary effects are likely to hit consumers. Acesur, who supplies the UK's biggest supermarkets, says customers could see olive oil prices rise by 20-25%.

Themes to Watch Out

Amazon iRobot Acquisition

Source: Credit: Mashable Composite; IRobot, Shutterstock/Dan Thornberg.

Amazon's $1.7bn acquisition of iRobot, producer of Roomba robot vacuum cleaners shows further growth intentions of it's smart home product lines. However, privacy experts are concerned about what the home-mapping abilities could mean for consumers' data. Roomba vacuums have already been scrutinized over the data they collect. After mapping your house, data is collected by iRobot and sometimes shared with third parties - sparking potential concerns on the deal's regulatory approval.

Baidu Selfdriving Taxis Approval

Source: Reuters/Florence Lo/File Photo.

China's recent regulatory approval may potentially pave way for further development and adoption of autonomous self-driving vehicles. Baidu has leapfrogged rivals like Inc. and XPeng Inc, securing permits to operate robotaxis without a driver or a person overseeing safety in a vehicle in two cities, Wuhan and Chongqing.

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