Central bank watching deflation
Perng Fai-nan (彭淮南), governor of the central bank, yesterday told lawmakers that the central bank has worried about the nation's deflation problem since last year, but he declined to say if Taiwan is already in deflation. "We have been watching deflation closely since last year," Perng said. "But the weak consumer price index -- down 0.1 percent during the January-September period -- is mainly due to falling fruit prices after the nation's entry into the WTO, as well as declining rents and oil prices." When asked by lawmakers what the central bank will do to support the weakened New Taiwan dollar, Perng said the central bank will intervene in the currency market only when there are unusual market expectations or for other disruptive or seasonal factors. "There are just too many factors affecting the currencies in the foreign exchange market," he said. According to Perng, the local currency has been moving within the acceptable range against the US dollar. The unit is still relatively stable compared with other regional currencies such as the South Korean won, the Japanese yen, and the Singapore dollar, he added.
China Airlines ups cargo flights
China Airlines Co (華航), Taiwan's largest carrier, will add eight extra cargo flights to the US for 10 days starting tomorrow to meet surging demand after shutdown of US West Coast ports. The airline will add six extra flights on Boeing 747-400 jetliners to Los Angeles and two to Chicago, increasing its cargo capacity by about 15 percent, China Airlines said in a statement. The company now operates 27 weekly cargo flights to the US. Taiwan exports NT$1.5 billion (US$43 million) of computers and other products to the West Coast each day, with NT$900 million transported by sea and the rest by air, Minister of Economic Affairs Lin Yi-fu (林義夫) said yesterday. The US is the second-largest buyer of the nation's semiconductors and other exports.
Markets to have day off
The nation's financial markets, banks and government offices will be closed today for Double Ten Day, Taiwan's National Day. Trading will resume tomorrow.
Profits up at Chunghwa
Chunghwa Telecom Co (中華電信) posted a 4 percent increase in third-quarter profit, after overtaking a rival to become the nation's biggest mobile phone service provider this year with a stepped-up marketing campaign. The nation's former telephone monopoly, still 95 percent owned by the government, said net income rose to NT$12 billion (US$342 million) from NT$11.5 billion a year ago. Chunghwa said that per-share earnings of NT$3.84 in the first nine months signal the company will beat its NT$4.28 full-year target. "The company's been doing well," said Alex Wu (吳興國), an analyst with KGI Securities Co. "Chunghwa Telecom's been aggressively promoting its mobile phone services." Chunghwa has increased subscribers on its cell network, taking 33 percent of the market and ousting Taiwan Cellular Corp (台灣大哥大) from top place, Wu said.
New Taiwan dollar rises
The New Taiwan dollar yesterday rose against its US counterpart, rising NT$0.007 to close at NT$35.111, making a recovery from its nine-and-a-half month low of NT$35.118 on Tuesday. The turnover was US$512 million, down from the previous day's US$583 million. The local unit which opened at NT$35.098, traded between NT$35.062 and NT$35.117 during the session.
RSS