Global Business Daily: Walmart enters TikTok talks, Abe's legacy, Trump tariffs
Patrick Atack in London
Europe;

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"This is the only timing in which the leadership change should happen."

It's not abnormal for leaders to attempt to shape their succession, though the comment above from Japanese Prime Minister Shinzo Abe announcing his resignation is perhaps victim of translation – with the Tokyo Olympic Games postponed, and COVID-19 numbers trending downward in Japan, perhaps now really is the best time for a change. 

With the announcement of Abe's ill-health (reportedly the same issue that forced him to step down from the role in 2007, before his re-election) focus naturally turns to his legacy – especially as he will stay on as interim leader while a new government is chosen. 

"Abenomics" was the conservative leader's key policy aim. He wanted to reform and reorganize the economy, but despite some short-term wins his long-term vision was never truly accomplished. For example, he hoped to encourage Japanese businesses to hire more female board members, but in 2019 nearly 60 percent had no female board representation, according to Tokyo Shoko Research. 

I've linked below to a story from our Beijing bureau if you're interested in more on Abe, but there's more going on for me to tell you about. 

In Finland's southern lake region, the town of Lahti has created an app to track inhabitants' carbon emissions. And here's the kicker – it rewards you with coffee or cake for being green! Where do I sign up? 

Finally, our interview today is a real must-read. As Danny reported yesterday, the former Disney boss who moved to TikTok just three months ago has stepped aside and today, Chinese-UK entrepreneur Arnold Ma of Qumin explained how different working cultures may have played their part in the unhappy union. 

Happy reading, 
Patrick Atack

Digital business correspondent 

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Japanese Prime Minister Shinzo Abe has announced he will step down from the role for the second time in his career, due to illness. But there will be no immediate change, with Abe remaining in office until his successor is chosen. Click here to watch more on Abe's political legacy. 

In a convention address unlike any seen before, U.S. President Donald Trump announced a plan to place tariffs on any company that decides to leave the U.S. and create jobs elsewhere, if he is re-elected. "We will impose tariffs on any company that leaves America to produce jobs overseas," he said. 

Israel has listed an El Al flight taking off Monday for Abu Dhabi, which would be Israel's first commercial passenger flight to the United Arab Emirates after the two countries agreed to a U.S.-brokered deal to normalize relations.

Italy's important artisan production of luxury goods is under threat from the COVID-19 pandemic and lockdown, according to leaders of small firms in fashion and leather goods. There are at least  83,000 active businesses in the fashion industry, worth around 1.5 percent of Italy's GDP, but sales are down at least 40 percent, with many unable or unwilling to buy expensive goods since March. 

Retailer Walmart has partnered with tech industry leader Microsoft in its bid to take over TikTok from ByteDance after President Trump ordered the Chinese-owned app divest from the U.S. economy over security fears. It's a key moment for the largest supermarket chain in the U.S. and analysts wonder if this move is indicative of a wider ambition to challenge the likes of Amazon

The past six months have been difficult for culture vultures, with the lockdown delaying movie releases and cancelling music festivals outright. But things could be looking up, as publishers release the pent-up stores of manuscripts they've been holding on to over the summer. There are 600 coming next week alone. 

United Airlines is preparing for the biggest pilot furloughs of its history after announcing the need to cut 2,850 pilot jobs this year, or about 21 percent of its total, without further U.S. government aid. The airline said it needs another $25 billion to cover its payroll until March 2021. 

Chinese electric vehicle manufacturer Xpeng celebrated success last night, as its IPO on the New York Stock Exchange raised $1.5 billion and the firm's shares jumped by 67 percent. 

London's second airport, Gatwick, fell to a $428 million loss in the first six months of 2020, with the majority of air travel halted by the pandemic. The secondary hub added it was preparing to cut 600 jobs to deal with the long-term effects on the industry. 

Meanwhile, Dutch airport company Royal Schiphol Group announced several hundred job cuts to its nationwide workforce of 3,000. The group is based around the hub airport in Amsterdam and lost $292 million in the first half of the year

In the next step in its plans to be carbon-neutral by 2040, Amazon said it had purchased 1,800 electric vans from Mercedes-Benz for its European delivery fleet. It hopes the eSprinter and eVito models will be ready for deliveries before the end of 2020. 

Following in the footsteps of Nintendo's lockdown bestseller Animal Crossing, Tonic Games' Fall Guys  is the next feelgood game to capture audiences' hearts. It's become the most downloaded game on PlayStation Plus and more than 7 million copies have been bought via Steam. Taking inspiration from TV game shows, the title asks players to navigate characters through comedic scenarios, all while dressed in ridiculous costumes meaning T-Rex can finally race a Pineapple. 

 

WATCH: The Finnish town of Lahti is incentivizing its citizens to move towards greener living with an app that tracks their carbon emissions and rewards them with free coffee or cake.

Error loading player: No playable sources found
01:48

 

Arnold Ma is the CEO of Qumin, a Chinese digital marketing agency in London. He spoke to CGTN Europe about reports on why Kevin Mayer stepped down after only three months at TikTok and what might make it hard for those moving to a different working culture. 

 

How do the business cultures in the U.S. and China differ? 

It's related to the 'guanxi' culture in China. You need to know your colleagues on a personal level, such as going out for dinners and lunches and meeting their families before you start talking about business and before you are let into the inner circle and to really know the details.

Whereas in the West, it's almost completely the opposite so when the new senior executive joins a business, they are almost expected to be given the benefit of doubt and to be trusted immediately and given the details of the business involved in key decisions.

 

Microsoft says it's still in negotiations to take over TikTok. Why would Mayer leave if this process is still ongoing?  

I think Kevin Mayer's possibly not used to the fact that he's not been involved in a lot of the decision-making process. Maybe he's been left out of the Microsoft negotiations. I think he feels like he's not making a difference and isn't making an impact; and he's not been given the opportunity to make a difference at ByteDance at this point in time. 

 

What about the wider context, does the tense trading atmosphere between the U.S. and China play into this latest movement? 

I think a lot of the political tension, and especially with the lawsuit from ByteDance now, is probably more related to the business situation more than what people think. I think with ByteDance suing the U.S. government, it's more about them trying to create a better negotiation position. 

 

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