Goldman Sachs trading falls
Goldman Sachs Group Inc’s earnings easily beat analysts’ forecasts again, but the bank saw a big slowdown in trading, its most profitable business. Net income after paying preferred dividends fell 43 percent from the year-ago period as revenue in the bank’s bond, currency and commodities trading division fell to its lowest level since the depths of the financial crisis in late 2008. Analysts said a lack of market volatility and expectations for continued stability in interest rates hurt trading volume during the quarter.
PPI rate rises 3.9%
Official data show that the country’s annual producer price inflation (PPI) rate accelerated to 3.9 percent last month on a hefty increase in energy costs. The Federal Statistical Office said yesterday that the producer price inflation rate — a gauge of inflation trends in industry before they trickle through to consumers — was up from 3.2 percent in August. Energy prices were up 6.7 percent. Producer prices were up 0.3 percent on the month. The headline consumer price inflation rate in Europe’s biggest economy has remained tame in recent months even as output grew strongly. The annual rate last month was 1.3 percent.
Temasek invests in OOG
State-linked Singaporean investment firm Temasek has invested US$400 million in Brazil’s Odebrecht Oil and Gas (OOG) in a further push into South America, a joint statement said yesterday. “The funds will be used for fresh investments and will consolidate OOG as an integrated services company for the oil industry,” the statement said. Temasek Holdings’ investment will also help Odebrecht expand its footprint in Brazil and globally “especially in Angola and Latin America,” the statement said, adding that Temasek now holds a minority stake in the company. The precise size was not specified.
China denies rare earth cuts
China yesterday denied a report that the government plans to slash export quotas of rare earth metals next year, seeking to ease international jitters about its stranglehold on supplies. Any cut in Chinese exports could rattle firms, which use the range of metals to make parts of autos, computers and cellphones, missiles and new energy technology. Chinese Commerce Ministry Deputy Director Shen Danyang (沈丹陽) said a report in the China Daily on Tuesday that export quotas would be cut by 30 percent next year were “unfounded.”
Italy’s non-EU deficit soars
Italy’s trading performance with countries outside the EU took a sharp turn for the worse last month when the deficit shot up nearly five-fold, official data showed yesterday. The main cause was a 32 percent rise in imports, and a surge of imports from China, data from the official statistics office Istat showed. The trade figures showed an overall deficit of 2.746 billion euros (US$3.6 billion) from a deficit of 569 million euros in September last year. Exports rose by only 13 percent last month from the level a year earlier. Imports from China surged by 66.6 percent and imports from the Middle East by 64.9 percent, while imports from India rose by 49.7 percent. Exports to China rose by 47.8 percent, to the US by 42.1 percent and to Russia by 40 percent. In the first nine months of the year the cumulative trade balance showed a deficit of 15.249 billion euros, or more than triple the equivalent figure last year of 4.46 billion euros.
‘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
INCREASING PRESSURE: Pegatron chief financial officer Louise Wu said the merger would allow them to be more flexible when meeting customer needs Pegatron Corp (和碩), an Apple Inc assembly partner, yesterday said that it would fully absorb metal casing subsidiary Casetek Holdings Ltd (鎧勝) in a NT$14.5 billion (US$490.93 million) deal to improve the companies’ competitiveness in the phone assembly supply chain. When Pegatron and Casetek suspended trading earlier in the day, speculation swirled that a possible purchase by China’s Luxshare Precision Industry Co (立訊精密) might be in the cards, but the announcement of the merger dispelled any conjecture. The board of directories of each company agreed that Pegasus Ace Limited, a wholly owned subsidiary of Pegatron, would purchase Casetek in a reverse triangular