IMF touts capital controls
The IMF on Thursday said that capital controls could be a valuable tool for countries to curb large capital inflows, citing emerging powers Brazil and India. “A number of emerging markets are facing substantial inflows of capital at the moment as their economies are recovering and growing rapidly,” IMF spokeswoman Caroline Atkinson said at a news briefing. Asked about Brazil’s latest step to curb its rising currency, Atkinson said the actions could be appropriate. Brazil’s central bank said commercial banks must deposit — in cash — 60 percent of their foreign-exchange bets above US$3 billion, or when the transaction is bigger than the bank’s assets.
Spy link to China suspected
French automaker Renault suspects that top managers suspended for alleged industrial espionage were supplying details of the company’s electric cars to China, Le Figaro reported yesterday. The daily cited “several internal sources” at Renault anonymously as saying that the company and the French secret service suspected Chinese involvement in the affair. Renault said on Wednesday it had suspended the three top managers, and company sources said they were suspected of leaking secrets about the electric cars, on which the company is staking its future.
Arena to be renamed
The place where NBA stars LeBron James, Dwyane Wade and Kobe Bryant helped return US men’s basketball to Olympic gold is being renamed for a US firm. The 18,000-seat Olympic basketball arena is going to be called the MasterCard Center, the Purchase, New York-based payments company said. It’s the first 2008 Olympic Games venue and first arena in Beijing to sell naming rights. The renaming will become official on Jan. 21.
Mitsui, Mitsubishi eye LNG
Japanese trading houses Mitsui and Mitsubishi are looking to take stakes in what would be Russia’s largest natural gas (LNG) project, planned for Siberia’s remote Yamal Peninsula, a report said on Thursday. The project, to be led by Russian energy giant Gazprom, would reach costs in an estimated range of ￥10 trillion to ￥20 trillion (US$119.75 billion to US$239.5 billion), the Yomiuri Shimbun reported. A Mitsui spokesperson said that the trading company was indeed “positively considering” participation in the project. Mitsubishi officials could not be reached for comment.
Nippon, Tata form venture
Nippon Steel Corp, Japan’s largest producer, and Tata Steel Ltd formed a ￥40 billion venture to make automobile steel sheets in India. Tata Steel, India’s biggest steelmaker, will own 51 percent of the new firm, with Nippon Steel holding the remainder, the Tokyo-based firm said yesterday. The factory will be located in Tata Steel’s Jamshedpur complex. Production will start in 2013.
Skype to buy Qik Inc
Skype Technologies SA, the biggest provider of international calling, agreed to buy startup Qik Inc to help develop premium mobile video services. The agreement, Skype’s first acquisition, is expected to be completed this month, the Luxembourg-based firm said on Thursday. Terms weren’t disclosed. The purchase of Redwood City, California-based Qik could help Skype grab a bigger piece of the mobile-videoconferencing market.
‘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
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
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