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Microsoft being investigated
Taiwan's government said it's investigating Microsoft Corp for possibly inflating the prices of products it sells on the island. ``Microsoft's prices in Taiwan are more expensive than in Southeast Asia, Japan and the US,'' Roger Liaw, senior counsel with Taiwan's Fair Trade Commission, said in an interview. ``Last week, we asked Microsoft's representative in the region to meet with us.'' Microsoft denied any wrongdoing. ``All our customer contracts are the same as in other countries,'' said Zoe Cherng (程文燕), a Microsoft spokeswoman in Taiwan. Microsoft customers can choose which dealers to buy software from, she said. The local price of Office XP Professional was 13 percent higher than in North America.

CPI down 0.3 percent
Taiwan's consumer prices fell in August as retailers discounted clothes and other goods to attract customers. The consumer price index fell 0.3 percent from July, seasonally adjusted, following a 0.5 percent gain the previous month. From a year earlier, prices also fell 0.3 percent after climbing 0.4 percent in July. Taiwan expects prices to rise 0.3 percent this year, suggesting that consumer demand is recovering slowly after the island's worst recession last year. The report suggests ``the presence of deflationary pressures because of weak domestic consumption and investment,'' said Liu Yi-cheng, an economist at National Investment Trust Co. The cost of food and drinks, which make up about a quarter of the consumer price index, rose 0.8 percent in August from July, without adjusting for seasonal changes, today's report showed. Housing rentals, which make up about a fifth of the index, fell 0.1 percent from July. Gas, electricity and water prices were unchanged. Clothing prices fell 4.3 percent.

Wan Hai plans merger
Wan Hai Lines Ltd (萬海航運), Taiwan's third largest shipping line by sales, is in talks with Trans-Pacific Lines Ltd that may led to an acquisition or a merger, Ci-online reported, citing a statement from both companies. ``Various forms of co-operation have been discussed, including a co-operative working arrangement, joint service agreement, merger, acquisition or other form of strategic alliance,'' the companies said, according to the report. Wan Hai operates 54 vessels and is the world's 21st largest shipping line by capacity, Ci-online said. Trans-Pacific Lines, a Hong Kong-based company, runs five ships, the publication said. Wan Hai more than tripled its first-half net income to NT$1.69 billion (US$49 million) for the six months ended June 30, from NT$499 million a year earlier as it cut costs, carried more cargo, and booked currency exchange gains.

Forex reserves at US$156 billion
Taiwan's foreign-currency reserves rose for a 14th month in August, climbing 0.8 percent from a month earlier to $156.44 billion, the central bank said. The reserves were the world's third largest in July following those of Japan and China. The government is counting on a rebound in exports to help it meet a 3.1 percent economic growth target this year, following last year's 2.2 percent contraction.

NT dollar gains
The New Taiwan dollar gained NT$0.114 on the US dollar to close at NT$34.122 to the greenback. Turnover for the day was US$473 million, up from yesterday's turnover of US$347.5 million.

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