Afternoon Coffee: SoftBank’s Vision Fund loses $18 billion; U.S. may offer incentives for moving supply chains out of China; Catch up with European vendors on ’50/50′ lists

SoftBank, the Japanese tech investment firm, has announced a loss of $18 billion to its Vision Fund, Reuters reports. Almost $10 billion of the losses were investments in office-sharing firm WeWork and the ride-hailing app Uber. During an earnings presentation, SoftBank CEO Masayoshi Son blamed the losses on disruptions caused by the coronavirus. SoftBank has pledged the sale or monetization of $41 billion in assets to help invigorate its share price.

Reuters also reports that Jack Ma — the co-founder of e-commerce giant Alibaba, the largest asset in the Vision Fund portfolio — will be leaving the SoftBank board of directors.

U.S. may offer incentives to companies that move supply chains from China

U.S. officials are drafting proposals that may offer tax breaks, new rules and subsidies to American companies that pull operations or key suppliers out of China, according to a report from Reuters. Interviews with a dozen current and former government officials suggest that a $25 billion "reshoring fund" could potentially be created to encourage U.S. companies to make the transition.

Additionally, U.S. lawmakers are crafting bills to help decrease U.S. reliance on Chinese products, especially medical and defense-related goods. Meanwhile, the State Department is working to ensure that American supply chains are more diversified following disruptions caused by the coronavirus, the report said.

China: U.S. rules against Huawei harm supply chain

China has said that new U.S. restrictions targeting Huawei Technologies may hurt the global supply chain, Bloomberg reports. The announcement comes after the U.S. moved to prevent chipmakers from using American technology to sell to Shenzhen-based Huawei or 114 other subsidiaries.

The new rules would also require licenses on U.S. equipment used by Chinese companies blacklisted by the U.S.

Among those blacklisted with Huawei are Chinese tech giants SenseTime and Megvii Technology.

Spend Matters Europe highlights European ‘50/50’ vendors

Spend Matters Europe Editor Nancy Clinton caught up with observations on European vendors that made the recently published Spend Matters’ 2020 "50 Procurement Providers to Know" list. This series focuses on vendors who stood out in their industry, and three executives from those providers spoke to us about making the list. Two firms moved from the "50 Procurement Providers to Watch" list. Read about Celonis, an AI-powered process mining platform, here. And read about Per Angusta, a procurement performance management firm, here. Rosslyn Data Technologies, a spend analytics vendor, joined the Know list this year. Read about Rosslyn here.

Check out Spend Matters Europe for daily insights on that market.

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