■ Credit ratings
Asian gains could slow
Asian sovereign credit ratings, which have had only upgrades for a second consecutive year, may see a lower amount of gains next year, Fitch Ratings said. Fitch raised four sovereign ratings in Asia this year, and higher rankings have outnumbered downgrades in three of the past four years, the company said. The risk of higher oil prices, a slowdown in US growth, a "hard landing" in China and gains in interest rates may hurt Asian growth, it said in a statement today. "Alone, none of these shocks would likely be sufficient to affect Asian sovereign ratings, but a combination could stress countries' creditworthiness," the statement said. "Asian sovereigns are well positioned to absorb most conceivable shocks that might arise in the year ahead," it said.
■ Banking
Cosmos stake sold in stages
General Electric Co plans to buy 49 percent of Cosmos Bank (萬泰銀行) in three stages, with details to be decided later, the Chinese-language Apple Daily News reported, without saying where it obtained the information. GE may first buy NT$7 billion (US$211 million) worth of convertible bonds, which may later be turned into a 25 percent stake in Cosmos, the report said. Cosmos may than issue about NT$3 billion worth of new shares to GE to boost its stake in the Taiwanese lender to more than 30 percent, the Taipei-based newspaper said. Following the first two steps, GE may make a tender offer to raise its stake in Cosmos to 49 percent, the report said. Fairfield, Connecticut-based GE, the world's biggest maker of power-plant equipment, plans to buy the Cosmos Bank stake through its affiliate GE Capital Taiwan Holdings Inc, according to a statement issued by the Fair Trade Commission in July.
■ Automakers
DaimlerChrysler okays cuts
DaimlerChrysler's supervisory board approved a cost-cutting plan in a close vote on Friday that will eliminate at least 8,500 jobs at Mercedes-Benz factories in Germany by 2008. Though the far-reaching plan was approved, eight of the 10 employee representatives on the 20-member board voted against it. They said it relied too heavily on job losses, even if the reductions will be achieved through voluntary buyouts. The split vote, while not unheard of, suggests that relations between DaimlerChrysler and its workers are becoming frayed, as the company's incoming chief executive, Dieter Zetsche, moves to reduce its labor costs.
■ Automakers
Toyota sales likely to fall
Toyota Motor Corp's car sales in Japan are likely to fall by 20,000 vehicles this year to 1.74 million -- the company's first decline in domestic sales in three years -- as competition rises from lower-priced cars, a report said yesterday. The Nihon Keizai Shimbun reported that Japan's largest automaker, which holds about 40 percent of the Japanese auto market, had initially projected domestic sales of 1.8 million cars this year. Toyota is likely to miss that target as demand for major models, including its mainstay Corolla compact, has been hurt by competition from lower-priced cars such as mini-vehicles and used cars, resulting in its first domestic sales decline in three years, it said. Toyota officials were not available for comment yesterday. Toyota did not introduce any new models in Japan between April and September, which also contributed to the weaker sales, the newspaper said.
BUSINESS UPDATE: The iPhone assembler said operations outlook is expected to show quarter-on-quarter and year-on-year growth for the second quarter Hon Hai Precision Industry Co (鴻海精密) yesterday reported strong growth in sales last month, potentially raising expectations for iPhone sales while artificial intelligence (AI)-related business booms. The company, which assembles the majority of Apple Inc’s smartphones, reported a 19.03 percent rise in monthly sales to NT$510.9 billion (US$15.78 billion), from NT$429.22 billion in the same period last year. On a monthly basis, sales rose 14.16 percent, it said. The company in a statement said that last month’s revenue was a record-breaking April performance. Hon Hai, known also as Foxconn Technology Group (富士康科技集團), assembles most iPhones, but the company is diversifying its business to
Apple Inc has been developing a homegrown chip to run artificial intelligence (AI) tools in data centers, although it is unclear if the semiconductor would ever be deployed, the Wall Street Journal reported on Monday. The effort would build on Apple’s previous efforts to make in-house chips, which run in its iPhones, Macs and other devices, according to the Journal, which cited unidentified people familiar with the matter. The server project is code-named ACDC (Apple Chips in Data Center) within the company, aiming to utilize Apple’s expertise in chip design for the company’s server infrastructure, the newspaper said. While this initiative has been
Clambering hand-over-hand, sweat dripping into his eyes, a durian laborer expertly slices a cumbersome fruit from a tree before tossing it down to land with a soft thump in his colleague’s waiting arms about 15m below. Among Thailand’s most famous and lucrative exports, the pungent “king of fruits” is as distinctive in its smell as its spiky green-brown carapace, and has been farmed in the kingdom for hundreds of years. However, a vicious heat wave engulfing Southeast Asia has resulted in smaller yields and spiraling costs, with growers and sellers increasingly panicked as global warming damages the industry. “This year is a crisis,”
HIGH-TECH: As leading-edge process technologies become more complicated, only a handful of players are able to provide design services, the company’s CEO said Artificial intelligence (AI) chip designer Alchip Technologies Ltd (世芯) yesterday said that revenue would grow significantly again in 2026 after adding a major AI chip customer, reversing moderation amid a product transition next year. The Taipei-based application-specific IC (ASIC) designer reiterated its strong revenue growth forecast for this year and 2026 after its stock plummeted about 23 percent to NT$3,145 from a peak of NT$4,085 on March 6 amid growing competition. Alchip said it has built strong partnerships with cloud service providers (CSP), denying that it had lost orders to smaller competitors such as Faraday Technology Corp (智原). Faraday said it has secured