AAPL Apple Inc

By Paul Page 

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Apple Inc. could start running a new iPhone supply chain through India within the next six weeks. Government officials expect the electronics giant to start assembly at a plant in Bangalore run by Taiwanese contract manufacturer Wistron Corp., the WSJ's Rajesh Roy and Newley Purnell report. It's part of Apple's effort to build up its role in the deeply fragmented Indian market, where smartphone sales are big but where buyers tilt heavily toward cheaper devices. Apple is displaying new flexibility in its famously rigorous electronics supply chain as sales growth is slowing in its big markets, including China. The new operation will likely grow in coming months. Apple is negotiating to bring component manufacturers to India to make parts and export finished phones, potentially giving the country a new place in global technology supply chains.

Brazilian meat exports are grinding to a halt amid a corruption scandal. Brazil's top meat producers are being hit hard as several countries including China and Chile close their doors to shipments, the WSJ's Paulo Trevisani and Luciana Magalhães report, while the country's officials rush to convince buyers that oversight is sound and the meat is good. The rapid shutdown of a major Brazilian export business highlights the fragile nature of the distribution channels for perishable goods -- and the big role that certificates and sanitation standards have in providing the confidence to move food around the world. For Brazil, meat exports plummeted abruptly as allegations broke that inspectors had allowed tainted meat to reach domestic and export markets. Brazil is trying to get countries to lift their bars, but economists fear the crisis could have lasting consequences on a sector that has been a rare bright spot in a troubled economy.

Amazon.com Inc. is getting a big break in a tax dispute with the Internal Revenue Service. The U.S. Tax Court handed the online retailer a victory in a more than $1.5 billion dispute over Amazon's transactions with a Luxembourg subsidiary, the WSJ's Richard Rubin and Laura Stevens report. The case involved transactions that happened in 2005 and 2006, and the dispute involves a crucial tactic Amazon has used to lower its tax bill as the company has expanded internationally. In this case, the idea was to transfer U.S. assets, such as software, trademarks and customer lists, to Amazon's European headquarters in Luxembourg "and to have the vast bulk of the income from Amazon's European businesses taxed in Luxembourg at a very low rate." The company isn't out of the woods: European regulators are examining whether its European tax deals amounted to illegal "state aid" from Luxembourg to gain an unfair advantage over rivals.

TRANSPORTATION

One of the world's largest shipbuilders is about to get much smaller. The $2.6 billion rescue package from Daewoo Shipbuilding & Marine Engineering Co.'s South Korean state-run creditors includes calls for steep cutbacks at the troubled business, the WSJ's In-Soo Nam reports. Daewoo's third bailout is the result of a glut of vessels and low freight rates that has put many shipyards in financial trouble. A slowdown in China has made things worse for the world's three biggest shipyards, which are all in South Korea. The Korean Development Bank says the new aid will come with big strings attached, including a "rigorous restructuring" with job losses and the sale of unprofitable operations. That's a major step: shipping analysts say Daewoo used earlier bailouts to keep operations running with few changes in hopes of a business turnaround that never appeared.

QUOTABLE

IN OTHER NEWS

President Donald Trump met with trucking executives and drivers as he sought to rally support for efforts to replace the Affordable Care Act, which he said had "inflicted great pain on American truckers." (WSJ)

U.S. new home sales increased sharply for the second consecutive month in February. (WSJ)

The number of Americans applying for initial jobless benefits rose at a strong pace in the past week. (WSJ)

The eurozone's economy grew at the fastest pace in six years in the first quarter, according to surveys of purchasing managers. (WSJ)

Workers at a BHP Billiton Ltd. mine in Chile will end a strike at the world's biggest copper operation this weekend. (WSJ)

Nike Inc. plans to increase efforts to bypass store owners by using apps and membership programs to reach consumers directly. (WSJ)

Sears Holdings Corp. suppliers are as reducing shipments and asking for tougher payment terms as concerns grow over the retailer's viability. (Reuters)

Amazon has agreed in principle to buy Dubai-based internet retailer Souq.com. (Financial Times)

European regulators put off a ruling on Maersk Line's takeover of Hamburg Sud as the carrier offered concessions on some shipping routes. (Port Technology)

Software giant SAP SE will work with British financial technology firm Everledger Ltd. to build blockchain capabilities into its business network. (Coindesk)

British trucker Eddie Stobart Logistics plans to raise $163 million in a public stock listing aimed at funding acquisitions. (Motor Transport)

Indian technology-focused truck brokerage Blackbuck closed a $70 million funding round that includes e-commerce company Flipkart. (TechCrunch)

Teva Pharmaceutical Industries Ltd., the world's biggest producer of generic drugs, plans to cut about 11% of its global workforce. (Bloomberg)

German logistics operator Rhenus Group raised its stake in Arkon Shipping to back a fleet expansion at the regional shipping operator. (The Loadstar)

Coyote Logistics, the freight broker owned by United Parcel Service Inc., is expanding intra-Mexico operations with an office in Guadalajara. (Air Cargo World)

Amazon is planning its fourth distribution site in the Jacksonville, Fla., area. (Florida Times-Union)

ABOUT US

Paul Page is deputy editor of WSJ Logistics Report. Follow him at @PaulPage, and follow the entire WSJ Logistics Report team: @brianjbaskin, @jensmithWSJ and @EEPhillips_WSJ and follow the WSJ Logistics Report on Twitter at @WSJLogistics.

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Write to Paul Page at paul.page@wsj.com

(END) Dow Jones Newswires

March 24, 2017 06:33 ET (10:33 GMT)

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