TI lowers forecast range
Texas Instruments Inc (TI), whose chips are used in everything from cellphones to cars, has slightly lowered the high end of its fourth-quarter earnings and revenue forecast. TI vice president Ron Slaymaker said on a conference call on Tuesday that demand for chips for laptops, hard disk drives and televisions had been weak, while chips for video games and smart phones were in strong demand. TI now expects net income of US$0.61 to US$0.65 per share in the current quarter. It earlier predicted US$0.59 to US$0.67 per share. It also expects revenue of between US$3.43 billion and US$3.57 billion. Analysts are looking for about US$3.5 billion on average.
IMF welcomes Irish budget
The IMF on Tuesday welcomed the Irish parliament’s approval of next year’s budget, which meets EU and IMF requirements to secure an 85 billion euro (US$112.3 billion) international bailout loan for the country. “We welcome approval of the 2011 budget ... This is a clear sign of Ireland’s strong commitment to tackle its problems and harness the impressive growth potential of this open and dynamic economy,” the Washington-based IMF said in a statement. Ireland on Tuesday announced an annual budget that includes 6 billion euros in savings via tax hikes and spending cuts, aimed at slashing its public deficit from about 32 percent of GDP this year to 9.4 percent next year.
German exports slide
Germany’s Federal Statistical Office yesterday said that exports dropped 1.1 percent on the month in October — giving up some of the ground they gained the previous month. The agency said that Germany — the world’s second--biggest exporter after China — exported 86.8 billion euros in goods and services worth in October. The decline followed a strong 3 percent gain in September. In year-on-year terms, exports were up 19.8 percent. Imports were up 0.3 percent on the month and 21 percent year-on-year in October at 72.6 billion euros.
BOA agrees to settle
Bank of America Corp (BOA) will pay US$137 million to settle allegations by authorities that it defrauded buyers of municipal bond derivatives. On Tuesday, the US Department of Justice said the bank would pay restitution to federal and state agencies as part of its admission of bid--rigging and other anti--competitive practices in selling municipal bond derivatives to various state agencies, municipalities, school districts and nonprofits. The settlement is the latest in a far-reaching, industrywide probe that dates to 2007 of the municipal bond derivatives market.
Amazon plans cloud books
Amazon will make its Kindle electronic books available for reading on Web browsers beginning early next year, with people’s digital collections saved in the Internet “cloud.” Amazon executives on Tuesday showed off “Kindle for the Web” at a Google press event introducing a new, swifter version of the California technology giant’s Chrome software for navigating the Internet. Kindle for the Web will be launched early next year and the application will be available in a Google Web Store that made its debut on Tuesday. Kindle books will be accessible through any standard browser, which will enable new features such as being able to do Internet searches on words highlighted in digital works.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a