CAL confirms deal
China Airlines Co (華航), the nation's largest carrier, confirmed yesterday it is to sign contracts totalling US$4.0 billion to buy 10 Boeing and 12 Airbus aircraft, ending a political tussle between Europe and the United States over the deal. China Airlines spokesman Roger Han (韓梁中) confirmed reports, saying: "The management plans to sign letter of intent this month, pending board approvals." The contracts to buy 10 Boeing 747-400s and 12 Airbus A330-300s "would be signed before the end of October," an unnamed top CAL executive told a Taipei-based evening newspaper Sunday.
Taiwan's CPI falls
The nation's consumer prices fell in September as retailers discounted clothes and other goods to attract customers. The consumer price index fell 0.74 percent from a year ago, the Directorate General of Budget, Accounting and Statistics (DGBAS) reported yesterday. That figure also fell 0.04 percent from August, it added. During the first nine month this year, the consumer price index fell 0.1 percent from the same period of last year, DGBAS said. 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 wholesale price index rose 0.47 percent in September from a year earlier, and rose 0.95 percent from August, the DGBAS said.
Central bank visit
A China central bank delegation heading to Taiwan may include the highest-level official yet to visit the island as Taiwan banks prepare to open their first offices across the strait, a local newspaper said, without citing anyone. The delegation may include Li Ruogu (李若谷), an assistant to the governor of the People's Bank of China (中國人民銀行), the report said. Li's responsibilities includes approval of applications from banks to set up operations in China, the report said. The delegation will visit Taiwan on Oct. 14 or Oct. 15 to meet with eight local banks, such as Bank of Taiwan (台灣銀行), Chinatrust Commercial Bank (中信銀) and United World Chinese Commercial Bank (世華銀行), which have applied to open representative offices in China, the paper said.
Proposed tax break
Taiwan is planning to exempt foreign technology professionals from income tax to promote local research and development projects, a Chinese-language newspaper reported yesterday. The incentive, being drafted by the Cabinet, was expected to attract more technology experts from China and other countries to boost Taiwan's research and development, the paper quoted unnamed sources as saying. The industries under consideration for the special tax exemption include electronics, communications, information services, biotechnology and nanotechnology. All are suffering a shortage of research professionals, the paper said.
Currency continues decline
The New Taiwan dollar yesterday fell to a new seven-month low against its US counterpart, down NT$0.075 to close at NT$35.069 on the Taipei foreign exchange market. The local currency, which traded between NT$35.046 and NT$35.089 during the session, was pressured by a general weakness among regional currencies against the greenback and a declining local stock market. The turnover was US$546 million, up from last Friday's US$260 million.
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