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The Morning Risk Report: Huawei Probed for Alleged Trade-Secret Theft |
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Ren Zhengfei, founder and CEO of Huawei, during a meeting with the media in Shenzhen, China, on Tuesday. He said the tech giant never would spy on behalf of China’s government. PHOTO: VINCENT YU/ASSOCIATED PRESS
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Good day. Federal prosecutors are pursuing a criminal investigation of Huawei Technologies Co. for allegedly stealing trade secrets from U.S. business partners, The Wall Street Journal reports.
The probe grew in part out of civil lawsuits filed against the Chinese technology giant. Huawei has long been under scrutiny by the U.S.; it has forcefully denied that it’s a security threat. The investigation comes amid a broader push by the Trump administration to aggressively pursue claims of intellectual property theft and technology transfer by Chinese companies.
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Pressure on Huawei is also increasing in other areas. Last month, Canadian authorities arrested the company’s finance chief at the request of U.S. authorities; she has denied the charges lodged against her. Polish authorities last week arrested a Huawei executive and charged him with spying on behalf of the Chinese government; the company wasn’t accused of wrongdoing in that case and it terminated the executive’s employment.
Germany is exploring ways to ban the use of Huawei's products in the country’s telecommunications infrastructure, according to a government official, extending the Western backlash against the Chinese tech firm over security concerns.
Earlier this week, Huawei’s founder made a rare appearance before international media at the company’s headquarters in Shenzhen. He said Huawei hasn’t, and would never, spy on behalf of the Chinese government.
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| From Risk & Compliance Journal |
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Workers in the foundry at an aluminum smelter operated by United Co. Rusal in Krasnoyarsk, Russia. Photo: ANDREY RUDAKOV/BLOOMBERG NEWS
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The Congressional effort to block a deal lifting sanctions on companies controlled by a Russian billionare could give officials pause before they take on another high-profile target. Sanctions experts say the failed Democratic-led effort injected politics into a technical de-listing process.
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The partial U.S. government shutdown is squeezing exporters that can’t obtain the licenses they need to send their products abroad, particulary those operating in sensitive industries such as defense and technology.
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Rep. Maxine Waters (D., Calif.) speaks with other lawmakers prior to a group photo. PHOTO: TOM WILLIAMS/ZUMA PRESS
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House Democrats plan to target White House Chief of Staff Mick Mulvaney over his prior role as the temporary head of the Consumer Financial Protection Bureau. Rep. Maxine Waters (D., Calif.), who chairs the comittee that oversees the agency, said she believes Mr. Mulvaney sought to dismantle it while serving as its interim leader.
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President Trump’s nominee to lead the Environmental Protection Agency told a Senate committee that, as administrator, he would continue to push the administration's agenda against regulation.
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Signet Jewelers Ltd. agreed to pay $11 million in penalties to state and federal regulators for allegedly opening credit-card accounts without consumer consent at retail stores it operates.
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Apple Inc.’s application of new revenue-accounting rules sparked confusion and frustration among analysts and investors who were trying to decipher the performance of the company’s services business.
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Chinese lawmakers are accelerating work on a long-sought foreign-investment law that has the potential to level the playing field beween domestic and foreign companies. Executives, though, are skeptical that Beijing will introduce changes that would weaken its state sector.
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Chief executives are worried about a possible recession in 2019. PHOTO: ASSOCIATED PRESS
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The possibility of a global recession ranks as the top concern on the minds of chief executives, according to a new survey from the Conference Board, a business research group. The Federal Reserve’s beige book shows concerns mounting among U.S. companies. Some retailers are preparing for weaker consumer spending, even if there are no immediate signs of it happening.
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British Prime Minister Theresa May’s failure to get U.K. parliamentary approval for a deal to split the country from the European Union adds significant pressure on companies as they plan for the now greater possibility of an abrupt and disorderly exit.
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Sprint Corp. will stop sending customers' real-time location data to middlemen. PHOTO: PATRICK T. FALLON/BLOOMBERG NEWS
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Sprint Corp. says it will stop sending individual customers’ real-time locations to data middlemen, following similar moves made last week by its rivals. The move came after a report suggested that some of the location data is easy to pull without users’ consent.
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Workers prepare for the Super Bowl in Atlanta. PHOTO: JOHN BAZEMORE/ASSOCIATED PRESS
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Most Americans don’t want brands to bring politics to the Super Bowl, a new poll said. Two-thirds of consumers called the game an inappropriate place for advertisers to make political statements, acccording to the poll, conducted online this month by Morning Consult for CMO Today.
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Sears, once the dominant retailer in America, would emerge from bankruptcy with about 400 locations. At its peak, it operated over 2,300 stores. PHOTO: JIM YOUNG/REUTERS
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Sears Holding Corp. will stay open after Chairman Edward Lampert's bid prevailed at a bankruptcy auction. Four hundred stores will remain.
Niantic Inc. the maker of the “Pokémon Go” smartphone app, plans to make more acquisitions following its latest venture-capital funding round.
Amazon.com Inc. has built its own line of published books, and it has tools to promote its works that other publishers can only dream about.
Gymboree Group Inc. filed for bankruptcy protection for the second time in less than two years and plans to shut its Gymboree and Crazy 8-brand children's clothing stores.
Tribune Publishing Co. recently tried to rekindle merger talks with Gannett Co. before Gannett became the target of a takeover bid by a hedge fund-backed media group.
U.S. bicycle- and scooter-sharing company Lime is betting it can conquer hilly streets, hot temperatures and a robust car culture in Australia.
Lenovo Group Inc. is bringing back the Razr, a once-popular flip phone, as a smartphone with a foldable screen and a starting price of roughly $1,500, according to people familiar with the matter.
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A Toyota Concept-i RIDE was displayed Tuesday at the North American International Auto Show in Detroit. PHOTO: WANG PING/ZUMA PRESS
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Many auto makers looking to ramp up the use of artificial intelligence are turning to teams of senior technology, business and production officials—rather than leaving it to chief information officers or other enterprise IT experts to oversee deployments alone, industry analysts say.
The strategy is aimed at better aligning tech capabilities with business-side goals, they say, mirroring a broader trend across all industries to more closely link corporate IT initiatives—and the role of CIOs—with revenue.
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Adam Neumann, CEO of WeWork, speaks to guests at the TechCrunch Disrupt event in New York in 2017. PHOTO: EDUARDO MUNOZ/REUTERS
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Adam Neumann, chief executive of office-space giant WeWork Cos., has made millions of dollars by leasing multiple properties in which he holds stakes back to the company he leads. Multiple investors in the privately held company said the arrangement concerned them.
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Carlos Ghosn is set to stay in jail at least until March after the Tokyo District Court upheld its earlier decision to deny his release on bail.
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The chief executive of Reckitt Benckiser Group PLC, whose products include Durex condoms, will step down at the end of the year.
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France asked Renault SA to call a board meeting in the coming days to name a successor to the company’s jailed chairman and CEO, Carlos Ghosn. The state is the company's largest shareholder, with a 15% stake.
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Prviate-equity firm Waterton Global Resource Management Inc. is launching a proxy fight with Hudbay Minerals Inc., pushing the Canadian mining company to overhaul its board and replace its CEO.
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