Thursday, July 9, 2020

The superpower of 2020 is making parody normal

This is Joseph

You know that I have had strong opinions about childcare. But the current silly situation just keeps getting more and more absurd. Dean Dad is on the case with Florida State University's new policy (comments got disabled just before he started on controversial topics).

From Matt Reed:
One way to handle that dilemma, of course, is just to outlaw it. That was Florida State’s approach. It mandated that parents who are working from home, and whose children are young, provide proof of a nanny or other caregiver, or be fired. It’s a solution that makes sense if you assume that everybody (including the nanny) is independently wealthy and working just to have something to do. If you assume, though, that people need their salaries, then it’s sexist and barbaric. When I read it, I initially thought I had missed the attribution to The Onion. If we had an actual, functioning judicial branch, I’d expect that to get tossed on “differential impact” in a millisecond. Alas, no.
This is the logical endpoint of not wanting to grapple with the joint problems of liability (in a classroom, somebody will get infected with covid-19 -- the US is a large country) and social design. At the same time that people are becoming richer off of the pandemic.

I think I am not unique in noting that removing childcare services shifts the economics of working in ways that really undermine the whole way we organize the economy. It also has the potential to induce large losses in student outcomes; vulnerable groups show disparate losses over the SUMMER. What are 2 years going to do?

But the other is the question of distribution. This has come up with trade. It is axiomatic that trade between the US and China makes both groups better off in aggregate. But it doesn't mean that there will not be losers in this game. There is an allergy to removing some of the wealth from the "winners" to compensate the "losers" as if market outcomes were some sort of ethical or moral process.

In the case of war we totally have concerns about "war profiteers" -- people who get rich in a time of great suffering instead of investing the money back into the common good. How is the pandemic different? A disease is not a moral process and so perhaps we should be thinking about how to distribute wealth and how to cope the shock. Short term cash transfers help (and are a good) but if the job distribution is very different afterwards then that will be bad. How do you square "stay home with your kids for the common good" with "Julie was there during the pandemic and was thus the best person to get the new promotion because of the skills she developed".

Finally, in the United States we link health care to employment. Let that sink in as you think about the FSU policy. If you have kids and are not wealthy then we'll take away your ability to be insured in the midst of a dangerous pandemic that often requires hospital care, even among the young/healthy.

It is a hard problem and it needs an even more serious grappling.

Wednesday, July 8, 2020

Maybe I should just start calling them Wednesday tweets


Start with this exhaustive thread.




























Tuesday, July 7, 2020

Another newly relevant old post





Wednesday, September 29, 2010

The heroin's still doing the heavy lifting -- why Ivy League legacies work

From Christopher Shea's Boston Globe column:
Richard D. Kahlenberg, editor of the forthcoming book "Affirmative Action for the Rich: Legacy Preferences in College Admissions," points out that universities in other countries don't give so-called legacy preferences to sons and daughters of their alumni. (Even Oxbridge colleges don't, despite the class-bound history of British education.) So, he asks, why on earth do we do it in America?
Broadly speaking, students go to college in search of four things: certification; instruction; reputation; and connections.

In terms of certification, any well-accredited school would do. In terms of undergraduate instruction, the best deal for the money (and perhaps the best deal period) is the small four-year school. (I'm leaving this as an assertion but I'm fairly confident I can argue the point if anyone wants to debate.)

In the next two categories, however, the Ivy League cannot be surpassed, in part because of the legacy system.

Without loss of generality, look at Harvard. The student population of the school consists entirely of two overlapping groups: people who can get into Harvard; people whose parents can get them into Harvard.

The first group is hard-working, ambitious and academically gifted. Assuming the number of need-based legacies is trivial, the second group comes from families that are wealthy (they're paying for a Harvard education) and well-connected (at least one parent went to Harvard).

Putting aside luck, you can put the drivers of success into three general categories: attitude, drive and work habits; talent, intelligence and creativity; reputation and connections. It is possible to succeed with just one of these (hell, I can think of people who made it with none), but there is a strong synergistic effect. A moderate talent who works hard and has connections will generally go farther than a spectacular talent who's lazy and isolated.

Connections are governed by the laws of graph theory. I'm not going to delve too deeply into the subject (since that would require research and possibly actual work on my part), but as anyone who has read even the cover blurbs on Linked or Small Worlds can tell you, adding a few highly connected nodes (let's call them senator's sons) can greatly increase the connectivity of a system.

It would be interesting to model the trade off between picking a well connected legacy over a smarter, harder-working applicant given the objective of producing the greatest aggregate success. Because of the network properties mentioned above, it wouldn't be surprising if the optimal number of legacies turned out to be the 10% to 15% we generally see.

Optimized or not, this mixture is almost guaranteed to churn out fantastically successful graduates regardless of what the schools do after the students are admitted. I'm certain the quality of instruction on the Ivy League schools is very good, but, like most education success stories, the secret here is mostly selection and peer effects.

Update: For a different interpretation (this time with actual data), check out this post at Gene Expression.








Monday, July 6, 2020

"The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage."

I have a feeling that I'm late to this party (around 21 years late), but I really like this essay by Warren Buffett, particularly his dismantling of one of the most overused and misleading cliches of investing, the buggy whip example.

 Well, I thought it would be instructive to go back and look at a couple of industries that transformed this country much earlier in this century: automobiles and aviation. Take automobiles first: I have here one page, out of 70 in total, of car and truck manufacturers that have operated in this country. At one time, there was a Berkshire car and an Omaha car. Naturally I noticed those. But there was also a telephone book of others.

All told, there appear to have been at least 2,000 car makes, in an industry that had an incredible impact on people's lives. If you had foreseen in the early days of cars how this industry would develop, you would have said, "Here is the road to riches." So what did we progress to by the 1990s? After corporate carnage that never let up, we came down to three U.S. car companies--themselves no lollapaloozas for investors. So here is an industry that had an enormous impact on America--and also an enormous impact, though not the anticipated one, on investors.

Sometimes, incidentally, it's much easier in these transforming events to figure out the losers. You could have grasped the importance of the auto when it came along but still found it hard to pick companies that would make you money. But there was one obvious decision you could have made back then--it's better sometimes to turn these things upside down--and that was to short horses. Frankly, I'm disappointed that the Buffett family was not short horses through this entire period. And we really had no excuse: Living in Nebraska, we would have found it super-easy to borrow horses and avoid a "short squeeze."

U.S. Horse Population 1900: 21 million 1998: 5 million

The other truly transforming business invention of the first quarter of the century, besides the car, was the airplane--another industry whose plainly brilliant future would have caused investors to salivate. So I went back to check out aircraft manufacturers and found that in the 1919-39 period, there were about 300 companies, only a handful still breathing today. Among the planes made then--we must have been the Silicon Valley of that age--were both the Nebraska and the Omaha, two aircraft that even the most loyal Nebraskan no longer relies upon.

Move on to failures of airlines. Here's a list of 129 airlines that in the past 20 years filed for bankruptcy. Continental was smart enough to make that list twice. As of 1992, in fact--though the picture would have improved since then--the money that had been made since the dawn of aviation by all of this country's airline companies was zero. Absolutely zero.

Sizing all this up, I like to think that if I'd been at Kitty Hawk in 1903 when Orville Wright took off, I would have been farsighted enough, and public-spirited enough--I owed this to future capitalists--to shoot him down. I mean, Karl Marx couldn't have done as much damage to capitalists as Orville did.

I won't dwell on other glamorous businesses that dramatically changed our lives but concurrently failed to deliver rewards to U.S. investors: the manufacture of radios and televisions, for example. But I will draw a lesson from these businesses: The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage. The products or services that have wide, sustainable moats around them are the ones that deliver rewards to investors.

Disinformation and dysfunction


Another strand in an old thread.

At this point, I suspect that most people in Trump's circle and possibly Trump himself realize that it is in his best interest and in that of the party to get everyone wearing masks and avoiding super spreader events .


 

With a few reasonable and inexpensive steps we could see the infection and hospitalization rates drop steadily between now and November with minimal impact on the economy outside of a couple of industries such as travel and dining.

Even with a country facing serious challenges, that’s not a bad place for an incumbent to be. So, if they realize this is overwhelmingly in their best interest, why aren’t they doing it? The answer is that they can’t. Once you’ve gotten your base invested in the belief that the pandemic is not a big deal, possibly even a hoax, and that the attempts of people like Bill Gates to contain it are part of a nefarious plot, it is all but impossible to pivot back to the direction you need to go.


  




 

Friday, July 3, 2020

What we were making fun of ten years ago






Saturday, July 3, 2010

Role models

While browsing the business section yesterday, the title and author of one of the books caught my eye so I picked it up and scanned the back cover:

Inspiration. Success. Confidence. Passion.

No one is born with these qualities, but they are the key ingredients for reaching goals, building careers or turning a blueprint into a breathtaking skyscraper.
I learned that the author would share "the life lessons and hard-won insights that made her a rising star in the business world" and that whether the reader was "landing that first job, navigating the workplace,or making a lasting impact," the author would show how to "Step up and get noticed at work -- focus and efficiency will open doors."

The author's name was Ivanka Trump.

The book is the Trump Card.

It's available in paperback.

Thursday, July 2, 2020

When a disinformation bubble designed to constantly ratcheting up fear and rage runs into the genuinely catastrophic...

In chaotic times, you are constantly running across data points that you know are important but because they come at you so fast it's difficult to keep track of them. I find blogs remarkably useful for taking these kinds of notes, particularly if you've been at it for a while and have old posts you can mine for relevant paragraphs.

For example, we've been talking about conservative movement disinformation for years.

The initial purpose of this "noble lie" approach was to use the propaganda to keep the base sending money and showing up for the polls through of a combination of rage and fear. As with all Straussian systems, it was assumed that those in power would be in on the joke while the people who believed the lies would simply serve as electoral cannon fodder.

At some point though (I suspect inevitably), a couple of things happen. First, the believers become leaders. This is become blindingly obvious with Trump, but the children of Fox News have been in control of the party since at least 2010 and the roots go back further. Remember how Dick Cheney insisted while traveling that all hotel televisions be tuned to Fox News?

The second, and possibly more dangerous problem is that a propaganda-fed base has no capacity to self correct, rather it continues follow unsustainable paths that only gain momentum, often exacerbated by ratcheting mechanisms. Soon you reach a point where, even if the leaders accurately perceive the situation and realized the best solution, they can no longer reconcile that reasonable course of action with what the vast majority of their supporters have been told to believe for decades.

In order to maintain these levels of anxiety and anger, the narratives employed increasingly apocalyptic language and imagery, a development we commented on four years ago.

Even in the small chunks of the Republican national convention that I listen to, there were numerous doomsday images and references to the "dark times" the country was facing. The people in the stadium found these statements credible because that's what they had been told on Fox and on the other right wing media sources they got their news from. Once you factor in the state of conservative media, the rise of Trump is neither that surprising nor that interesting.

Things have not gotten better


These are direct quotes from Adams







Wednesday, July 1, 2020

One of these days I'm going to have to write something about the consequences of years of playing along with myths of tech messiahs, unmooring "success" from viability, and generally letting rich people get away with anything-- but for now some totally unrelated deferred Tuesday tweets



Tesla is a company priced one, maybe two orders of magnitude above the fundamentals in the middle of a bubble in the middle of an economic collapse. Other high fliers are starting to implode, revealing fraud and massive regulatory failure.

But there's nothing to see here.




Musk, with the help of a... friendly board, has lined up an unprecedented compensation plan.

But there's nothing to see here.



Accompanied by lots of questionable accounting.

But there's nothing to see here.
 


The valuation assumes Tesla can achieve and maintain a near monopoly on EVs.

But there's nothing to see here.



Quality control seems to be having some issues. (Remember that question about goodwill?)

But there's nothing to see here.



    Model 3 totaled and the airbags didn't go off. Because the car was built in a tent. $TSLAQ https://t.co/hP6Lk9vO7V

    — TC (@TESLAcharts) June 30, 2020




And the stock keeps going up.



Tuesday, June 30, 2020

Our take from three years ago: "a propaganda-fed base has no capacity to self correct, rather it continues follow unsustainable paths that only gain momentum"

The next time someone asks why the GOP doesn't veer away from stands that look increasingly likely to end in electoral disaster, we have a post for that.

Thursday, November 2, 2017

Russians, Straussians, soft landings, and hamburger emojis

Since February, we've been discussing the curiously stable dynamic that keeps the GOP aligned with Trump even as his poll numbers slip. We've also argued that, at this point in time, this alliance holds the danger of an extraordinarily hard landing for the party. At the risk of overextending the metaphor, the Republicans are desperately hoping for a soft landing but are, at the same time, doing everything they can to maintain altitude.
As many have observed, the GOP of the 70s was able to minimize the long-term damage of Watergate by distancing themselves from Nixon and very publicly refusing to impede the investigation. The response of the party now has been just the opposite. It is as if the Republicans had responded to Watergate by doubling down their defense of Nixon, insisting there was nothing to the accusations, and calling for hearings into the crimes of McGovern, Humphrey, and LBJ.

Obviously, the decision to go all in on Trump is partially motivated by a desire to achieve as many policy goals as possible while still firmly in control of all three branches of government, but there's another factor which might be as large and which is possibly doing even more to eliminate the possibility of a soft landing.




.

If some poli-sci PhD candidate out there is looking for a thesis topic, you could do worse than the breakdown of Straussian communication matrices, or as I've put it, "drinking from the wrong pipe." The conservative movement was essentially a three-legged stool built on money, prioritizing strategic offices and elections, and misinformation. This last one was arguably the most important; it is also the one that has proven the least stable.

The initial purpose of this "noble lie" approach was to use the propaganda to keep the base sending money and showing up for the polls through of a combination of rage and fear. As with all Straussian systems, it was assumed that those in power would be in on the joke while the people who believed the lies would simply serve as electoral cannon fodder.

At some point though (I suspect inevitably), a couple of things happen. First, the believers become leaders. This is become blindingly obvious with Trump, but the children of Fox News have been in control of the party since at least 2010 and the roots go back further. Remember how Dick Cheney insisted while traveling that all hotel televisions be tuned to Fox News?

The second, and possibly more dangerous problem is that a propaganda-fed base has no capacity to self correct, rather it continues follow unsustainable paths that only gain momentum, often exacerbated by ratcheting mechanisms. Soon you reach a point where, even if the leaders accurately perceive the situation and realized the best solution, they can no longer reconcile that reasonable course of action with what the vast majority of their supporters have been told to believe for decades.

One of the essential steps for achieving a soft landing is getting your core supporters to face just how dire the situation is. Fox News et al., however, has simply lost the capacity to do this.

Monday, June 29, 2020

I hate to spoil another blogger's joke...



So just click over to the Financial Times and read this cautionary list of red flags to watch out for when trying to avoid companies likely to leave a multi-billion dollar hole in the market. Make sure to read the last paragraph.

We’ll wait.

Who’s going to be the next Wirecard?


Friday, June 26, 2020

Tesla context -- Why the red flags matter


It may seem like we've been picking on Tesla quite a bit lately. Sure, Musk is annoying, but the SpaceX stuff is cool, and we can all get behind electric cars and solar cells. Aren't there things  more worth complaining about in 2020?

The trouble with that framing is that the things you hear about -- the often cool, sometimes just goofy technology, the outrageous claims, the nerd as rock star lifestyle --  are a small part of the story, while the big parts of the story are more than big enough to worry about. This is especially true when you're living in Jengaville where one of the biggest, most precarious towers is a stock market bubble in the middle of an economic collapse.

Both columns in the table below show reasons for concern (discussed further here). Tesla has grown since 2017, but its revenue is still a fraction of the others below. This is a seventeen year old company that has turned a profit only intermittently.

Think about that for a moment and remember...

... Tesla's market cap is around three times that of GM and Ford, combined.

The other column is a stark reminder of the issues with corporate governance. The board, of course, provides no oversight. Musk has flagrantly attempted to manipulate the stock price. Many of the accounting practices appear fishy. All of this may or may not be connected to a mysterious and conveniently timed spike in the stock price that earned Musk a bonus worth three quarters of a billion dollars.

In more normal times, I'd add something here about Tesla being a bad employer and bad corporate citizen, but at the moment, I'm mainly thinking about what a stock market collapse would do to a fragile economy, the pocketbooks of retail investors and the emotional well being of a country that's already under just a bit of stress.

Thursday, June 25, 2020

Some thoughts on recent reporting on Tesla

This is Joseph

One thing that I have not talked a lot about on the blog is Tesla (usually Mark's beat -- Mark is reporting on Tesla on Twitter). Tesla is becoming much bigger news now that a business insider story raises some safety concerns:
Leaked emails from 2012 reveal that Tesla knew its Model S battery had a design flaw that could lead to break downs and fires, but it sold the cars anyway. It's unclear when the design flaw was fixed.
Now, in one way this is quite normal -- cars have manufacturing issues all of the time. What makes this bad is that it is a mission critical component (the battery) and on a very high end vehicle. It's old, but it can be hard to report on a defect without a great inside source. I can think of no faster way to undermine a high end brand then to have failures on key components and the battery is heart of the electric vehicle. I think only the brakes being defective would worry me more, and even then the flammable piece is definitely not ideal.

You need to out-compete vehicles like the Volt, which itself is discontinued. While the Tesla generally scores better than the Volt did, it does so at almost twice the price point the Volt was offered at. The differences in overall size, features, and ratings are not large (and the back-up fuel tank on the Volt is maybe even a plus). So the prestige brand has to bring something to the table and an obvious choice would be reliability. It is not helpful, as Mark has tweeted, that JD Power found Tesla had the lowest quality score among 32 brands.

Here is hoping that more information comes out that makes this look like an outlier and not a common issue with Tesla vehicles.But the idea of Tesla, becoming a luxury electric vehicle car brand, really does depend on getting the key pieces of the top of the market right. At the moment the cars are hard to get (scarcity = good) but at some point you need to successfully scale up unless you plan to remain a niche player. It's an awfully expensive company for a niche . . .

There are some more things to consider about the corporate structure itself (accounting and governance) which may impede Tesla's ability to adapt tho these challenges, but this is probably a separate post topic.

Wednesday, June 24, 2020

The standard journalistic definition of bias is absurdly narrow but at least it’s self-serving.

Consider the following hypothetical.

 Upon reviewing the records of a male professor, we find a consistent pattern of his giving lower grades to female students based on comparable work. When accused of bias, he replies that he obviously can’t be since most women are Democrats and he’s a Democrat.

Or let’s say he has a record of giving high grades to children of people who can advance his career, department heads, committee members, editors of prestigious journals, etc.

Or what if the professor was known to give high marks to students who sucked up to him and grade more harshly when one challenged him?

In virtually every job you’ll find, discussions of bias will center around race and ethnicity, gender, sexual orientation, religion, conflicts of interest, and playing favorites. Outside of government, the only place I can think of where party affiliation and position on the ideological spectrum makes the list, let alone dominates it, is in journalism.

If you went back 100 years or so, this made a little more sense. All major cities and most medium, even small, towns had at least two papers, one Democrat and the other Republican. Giving the opposing party a chance to air its views actually was a good indicator of how seriously editors and publishers took fairness. Obviously this is no longer the case.

The nature of the messaging coming from the two parties has also changed (and more to the point diverged) even more sharply. Conservative movement Straussianism combined with the Nixon administration's young McLuhan-spouting media advisers (including Roger Ailes and, believe it or not, the head writer from Laugh-In). Republican messaging became more disciplined and planned out, always focused on partisan objectives with two tiers, one aimed at the base and the other explicitly designed to play on the weakness of the mainstream press.

The result of holding onto this now profoundly flawed definition of fairness and objectivity is a system where journalists are actually rewarded for engaging in bad behavior. They can indulge their worst biases and bigotry, stroke sources, back away from stories requiring genuine courage, and they will be praised for balance as long as these biases were nominally nonpartisan or the slant favored Republicans over Democrats. Add to that how adept conservatives became at employing both carrot and stick and you have a situation that makes terrible journalism all but inevitable.

Arguably the worst offender and certainly the one that did the most damage due to its reach and reputation is the New York Times.

I had a chance to see this up close in the 90s when I was living in and around Arkansas. I knew that critics had been accusing the New York Times of class bigotry pretty much constantly since the 19th century, but I was totally unprepared for the openness and the nastiness of the bias. The national press, very much led by the gray lady, was horribly offended by the thought of a piece of poor white trash getting this far above his place. The 90s was also when we learned that the mere mention of Hillary Clinton tapped into a stunning pool of misogyny in the national press corps.

(To get a small but telling glimpse at the underlying misogyny of the time, go google Spy magazine covers featuring Hillary Clinton. If you want to defend the magazine and the press at large from charges of sexism, make sure you have a defense ready for the one where they added the penis.)

Whitewater also demonstrated the distaste for and disinterest in the rest of the country displayed by the NYC/DC press. Reporters routinely confused the Fulbright and Faubus camps, and treated probably the state's worst segregationist of the civil rights era as a trusted source.

When looking for bias, you should also ask yourself who is in a position to do something for the reporter or the organization. While all journalists rely on access, no publication has as much or depends on it as heavily as does the New York Times.The desire to please or at least avoid angering sources explains a great deal about the career of Judith Miller, the uncritical acceptance of Paul Ryan as series policy wonk, and the embarrassing puff pieces on figures like Hope Hicks and Jared/Ivanka.

We also need to mention the paper‘s extraordinary willingness to carry a grudge. Along with the misogyny, this was a major factor in the coverage of the 2016 campaign. Hillary is not the only example.

Gawker had a long history of humiliating the New York Times by pointing out sycophantic coverage of Silicon Valley and other lapses. When Peter Thiel, a figure so far out of mainstream thought as to criticize women’s suffrage, engineered a lawsuit expressly to kill the publication, the NYT, rather than standing up for journalism and pushing back against a dangerous precedent, actually gave Thiel a spot on the op ed page to tell his side of the story.

Sometimes the press corps simply takes a dislike to someone, particularly if an influential peer like Maureen Dowd sets an example. As long as the subject is Democratic, the result can be unchecked viciousness. Given the closeness of 2000, it's reasonable to argue that the biased coverage of Gore decided the election. Add to that the work of Judith Miller and the New York Times bears a great deal of responsibility for the Iraq War.

Any definition of fairness that turns a blind eye to these things is so flawed as to be dangerous to democracy.

Tuesday, June 23, 2020

Tuesday Tweets



 





















Monday, June 22, 2020

To misplace one billion dollars may be regarded as a misfortune; to lose two looks like carelessness.

Just to get everyone up to speed.
Wirecard shares plunged more than 60% on Thursday as the German payments giant postponed its annual results once again and said auditors could not confirm the existence of 1.9 billion euros ($2.1 billion) in cash on its balance sheet.

The Munich-headquartered company said in a statement Thursday morning that auditor EY couldn’t find the cash balances — which represent roughly a quarter of its balance sheet. There were indications that “spurious balance confirmations” had been made by a trustee to “deceive the auditor and create a wrong perception of the existence of such cash balances,” it added.

“The Wirecard management board is working intensively together with the auditor towards a clarification of the situation,” the firm said. It added that failure to provide its 2019 financial statements by Friday could result in loans of around 2 billion euros being “terminated.”

...

The Financial Times has published a series of reports on its investigation into Wirecard’s accounting practices. According to those reports, which began back in January 2019, Wirecard’s Singapore office tried to inflate revenue through forged and backdated contracts. Another story in October claimed that Wirecard’s staff appeared to conspire to inflate sales and profits at subsidiaries in Dubai and Dublin and mislead EY. 


Is the a SoftBank connection? Do you even have to ask? (From April of last year)

The investment by the world’s biggest private technology company is a vote of confidence in Wirecard’s business as it defends itself against allegations of fraud, and will allow the Munich-based firm to expand its operations in Asia.

Shares in Wirecard jumped 10 percent to the top of Germany’s blue-chip index by 1240 GMT.
Wirecard, founded in 1999, ousted Commerzbank from Germany’s leading share index last year as it benefited from an accelerating global trend towards digital payments driven by e-commerce.

The two companies also unveiled a strategic partnership in which Softbank will help Wirecard expand in Japan and South Korea, and provide opportunities to work with other companies in its portfolio in areas such as data analytics, AI and digital financial services.

Other Softbank investments in its Vision Fund range from ride-sharing giants including Uber, DiDi, Grab and Ola to new financial and business services such as WeWork. Analysts said the partnership could provide further growth opportunities for Wirecard.

“Wirecard has a strong track record in pioneering innovation in digital payments and has been at the forefront in reshaping modern consumer behaviors,” a spokesman for Softbank said.

“We are excited to partner with the company and see huge potential to deploy this technology at scale across new markets and sectors within SoftBank’s global technology portfolio.”