Juncker: European economy would suffer if free-travel zone collapses

Updated 16 January 2016

Juncker: European economy would suffer if free-travel zone collapses

BRUSSELS: EU citizens would have a harder time finding jobs and the economy would suffer should Europe's internal passport-free zone collapse under the pressure of the migration crisis, the head of the bloc's executive said on Friday.
European Commission President Jean-Claude Juncker conceded it would not be easy to curb the mass influx of migrants and refugees, a top priority for Germany — the 28-nation bloc's biggest economy and the main destination for those arriving.
The migration crisis, Europe's worst since World War Two, exposed bitter disagreements between EU members and has put the Schengen zone of passport-free travel on the verge of collapse, a prospect Juncker set out to warn against.
"Less Schengen means less employment, less economic growth," he told a news conference in Brussels. "Schengen is one of the biggest achievements of the European integration process."
"Without Schengen, without the free movement of workers, without freedom of European citizens to travel, the euro makes no sense.. And the same applies to the link between Schengen, freedom of movement and the internal market."
"If anybody wants to kill off Schengen, then ultimately what they are going to do is do away with the single market as well. And that's going to lead to unemployment issues in Europe."
Juncker said the brake-up of Schengen would also make freight and business travel much more expensive as he urged member states to deliver on measures the bloc has already adopted to mitigate the crisis but largely failed to deliver on.
EU members have traded accusations over who is to blame for the crisis, with Brussels and Germany accusing Italy and Greece of letting too many people in. The southern states lambasted Berlin for an open-door policy that encouraged more arrivals.
Last year, more than one million arrived in the EU. The bloc had little success in creating migrant registration 'hot-spot' sites in Greece and Italy, relocating people who already arrived to other EU countries or getting Turkey to keep more of the migrants and asylum-seekers on its soil.
Juncker said he would not give up seeking a European solution to prevent member states from resorting to national fixes, like reintroducing border controls within Schengen. But he admitted that would continue to be an uphill battle.
"I don't have too many illusions about the year ahead because everything is going to be difficult. But I'm not going to give up, I reject the idea that this is somehow the beginning of an end," he said.

Big week for Big Tech as earnings, hearings loom

Updated 25 October 2020

Big week for Big Tech as earnings, hearings loom

  • The four giants drawing the most scrutiny — Apple, Amazon, Facebook and Google — have been wildly successful in recent years

SAN FRANCISCO: Big Tech is bracing for a tumultuous week marked by quarterly results likely to show resilience despite the pandemic, and fresh attacks from lawmakers ahead of the Nov. 3 election.

With backlash against Silicon Valley intensifying, the companies will seek to reassure investors while at the same time fend off regulators and activists who claim these firms have become too dominant and powerful.

Earnings reports are due this week from Amazon, Apple, Facebook, Microsoft, Twitter and Google-parent Alphabet, whose combined value has grown to more than $7 trillion.

They have also woven themselves into the very fabric of modern life, from how people share views and get news to shopping, working, and playing.

Robust quarterly earnings results expected from Big Tech will “highlight the outsized strength these tech behemoths are seeing” but “ultimately add fuel to the fire in the Beltway around breakup momentum,” Wedbush analyst Dan Ives said in a note to investors.

The results come amid heightened scrutiny in Washington of tech platforms and follow a landmark antitrust suit filed against Google, which could potentially lead to the breakup of the internet giant, illustrative of the “techlash” in political circles.

Meanwhile, Senate Republicans have voted to subpoena Jack Dorsey and Mark Zuckerberg, the chief executives of Twitter and Facebook respectively, as part of a stepped-up assault on social media’s handling of online political content, notably the downranking of a New York Post article purported to show embarrassing information about Democrat Joe Biden.

CEOs of Twitter, Facebook and Google are already slated to testify at a separate Senate panel on Wednesday examining the so-called Section 230 law, which offers liability protection for content posted by others on their platforms.

The four giants drawing the most scrutiny — Apple, Amazon, Facebook and Google — have been wildly successful in recent years and have weathered the economic impact of the pandemic by offering needed goods and services.

Google and Facebook dominate the lucrative online ad market, while Amazon is an e-commerce king.

Apple has come under fire for its tight grip on the App Store, just as it has made a priority of making money from selling digital content and services to the multitude of iPhone users.

The firms have stepped up lobbying, spending tens of millions this year, and made efforts to show their social contributions as part of their campaign to fend off regulation.

“For the most part, tech companies know how to do this dance,” said analyst Rob Enderle of Enderle Group.

“They don’t spend a lot of time bragging about how well they have done any more.”

Ed Yardeni of Yardeni Research said the outlook for Big Tech may not be as rosy as it appears.

“For one, regulators at home and abroad are gunning to rein in some of the largest US technology names,” Yardeni said in a research note.

Of interest to the market short-term will likely be whether backlash about what kind of content is left up and what is taken down by online titans causes advertisers to cut spending on the platforms.

Economic and social disruption from the pandemic also looms over tech firms, which benefitted early in the pandemic as people turned to the internet to work, learn, shop and socialize from home.

“Performance will be best for those providing solutions for people working at home,” analyst Enderle said.

Amazon, Google and Microsoft each have cloud computing divisions that have been increasingly powering revenue as demand climbs for software, services and storage provided as services from massive datacenters.

Amazon has seen booming sales on its platform during the pandemic, and viewing surge at its Prime streaming television service.

Enderle expressed concern that with the coronavirus disease (COVID-19) cases and a lack of new stimulus money in the US, tech companies could reveal in forecasts that they are bracing for poorer performance in the current quarter.