Taiwan-US FTA touted
A Taiwanese official urged the US on Friday to prioritize the signing of a free trade agreement (FTA) with Taiwan. Addressing the annual conference of the Taiwan Chambers of Commerce of North America, ROC Minister without Portfolio Ho Mei-yueh (何美玥) said the establishment of a Taiwan-US FTA would be advantageous to the US because it would create a lot of business opportunities for US businesses. While it would not be a problem for large US businesses to enter the Chinese market, small- and medium-sized businesses need a reliable partner like Taiwan to enter the Asian market, Ho claimed.
Economy set to grow faster
China's economy will expand faster this year than last year as investment and exports continue to grow, the central bank's research bureau said. Gross domestic product will probably rise 10.3 percent in the first six months before slowing in the second half for full-year growth of 10 percent, the People's Bank of China said in a report, published yesterday in the state-owned China Securities Journal. Consumer prices are expected to rise 1.3 percent in the first half, and full-year inflation will be about 1.7 percent, the report said.
IMF head predicts 5% growth
The head of the International Monetary Fund predicted here on Friday that the world economy would grow 5.0 percent this year and next, an upward revision from the IMF's previous forecasts of 4.9 percent this year and 4.7 percent next year. Despite high oil prices and imbalances in global momentum, the world economy "will be growing at 5.0 percent in 2006 and will continue with a similar rhythm in 2007," said IMF managing director Rodrigo Rato. "I think the world is really in an expansionary phase," he told African representatives at a meeting to prepare for the annual session of the IMF and World Bank in Singapore in September.
Taiwan R&D plan approved
Taiwan's Ministry of Economic Affairs (MOEA) has approved an application from three local pharmaceutical companies to form a research and development alliance on gene vectors, an MOEA official said yesterday. He described gene therapy as a new hope for people with cancer or genetic diseases, but noted that Taiwan still lacks key knowledge in producing genetic medicines, so the alliance should be helpful to Taiwan's biomedical industry. The alliance -- formed by ADImmune, Myceanx and CESCO -- will not only develop its own technologies in gene vectors but will also seek technology transfers from other countries to assist local medicine production.
US firm to cut PCCW deal
US private equity firm TPG-Newbridge is planning to buy Hong Kong phone operator PCCW Ltd's (電訊盈科) assets by offering its reluctant Chinese shareholder up to 50 percent of the deal, news reports said on Saturday. Newbridge plans to use the offer to woo PCCW's 20-percent stakeholder China Netcom (中國網通) -- seen as a major hurdle in the proposed deal because it voiced objections to foreign control of the phone company, a person familiar with the situation who spoke on condition of anonymity told Dow Jones Newswires. The bid by Australia's Macquarie Bank Ltd, which has offered China Netcom a stake of up to 50 percent in the deal, is valued at US$7.3 billion, the report said.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to
The US stock market has been on a tear, yet the country’s economy is in the dumps. So why do so many people believe — undoubtedly incorrectly — that the stock market has decoupled from reality? The economy many people experience, while bleak, is local, personal and, for the most part, either not publicly traded or plays only a small part in the stock market’s moves. To explain why these personal experiences have so little effect on equity markets, we must look more closely at the market role of the weakest industry sectors. The surprising conclusion: The most visible and economically vulnerable