about 2 years ago • 3 mins
Intel announced plans earlier this week to list Mobileye on the stock market, as the chipmaker encourages its fledgling self-driving business to make its own way in the world.
What does this mean?
Intel’s decision to buy Mobileye in 2017 has turned out to be a shrewd one: electric vehicle (EV) makers are increasingly adding self-driving capabilities to their latest models, which has created huge demand for Mobileye’s specialized chips and software. So much, in fact, that the business has been outperforming its parent company by some way: Mobileye’s revenue is expected to grow by 40% this year, while Intel’s is expected to fall around 6%.
But Intel’s nothing if not a proud dad, boasting on Monday that the segment has now won major contracts with over 30 top carmakers. In fact, research firm Guidehouse Insights reckons Mobileye has already cornered about 80% of the global market for “advanced driver-assistance vision systems” – or, uh, sensors. So like every good parent, Intel’s finally ready for its kid to stand on its own four wheels: the chipmaker announced Mobileye would list on the stock market next year.
Why should I care?
For markets: Papa needs a new pair of shoes.
Intel’s decision isn’t just in Mobileye’s best interests: Morgan Stanley reckons the listing will allow the chipmaker to free up cash better spent elsewhere, while still allowing it to profit from Mobileye’s growth as majority owner. That should only benefit its beleaguered stock, which has underperformed an index tracking some of the biggest chipmakers by 25% this year. Tuesday was a good start: investors initially sent Intel’s share price up 9%.
The bigger picture: Intel has other tricks up its sleeve.
Intel also announced this week that it’d be buying Screenovate, whose technology allows devices with different operating systems to interact with each other. Intel thinks the new tech will slot into its existing PC products neatly, and should help bring an influx of new customers on board.
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Data out on Tuesday showed UK retail sales surged last month, and bargain-hunting Brits are now just crossing their fingers that all that shopping arrives sometime – anytime – soon.
What does this mean?
Savvy shoppers were snapping up Black Friday deals left, right, and center last month – partly because of low prices, sure, but also in a bid to get ahead of potential shipping delays this holiday season. That helped specialist retailers – including gift, toy, and jewelry stores – post a 21% increase in sales compared to the November before the pandemic. Clothing sales likewise boasted their biggest increase since Covid arrived, but it wasn’t just stores that did well: bars, pubs, and clubs saw their sales climb by 34% versus the same time in 2019. Add it all up, and retail sales in the UK were up a pre-pandemic-busting 4.1%.
Why should I care?
The bigger picture: No more sales.
Brits had good reason to hunt a bargain, with nearly 90% of them on edge about rising prices, according to data from credit card provider Barclaycard. They can’t even rely on getting things cheap in the January sales: a major retail organization just said that rising costs could leave retailers struggling to cut prices in the New Year. That alone could damage consumer spending, and then there’s the ever-increasing likelihood that the Bank of England will raise interest rates in the next few months – a move that would leave shoppers with even less cash to spend.
Zooming out: Hot property.
Life’s bigger buys are getting more expensive too, with strong demand and a property shortage pushing up Britain’s real estate prices. In fact, data out on Tuesday showed the average house price rose to a record £273,000 ($361,000) last month – up 8.2% from the same time last year, and the quickest three-month rise since 2006.
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