JAPAN
Wages slide 0.4 percent
Wages slid for the first time in 13 months in March, underscoring the risk that slumping consumer spending may undermine the recovery from an earthquake and tsunami that left more than 25,000 people dead or missing. Monthly pay, including overtime and bonuses, dropped 0.4 percent from a year earlier to ¥274,886 (US$3,383), the Labor Ministry said yesterday in Tokyo. Overtime work hours fell 2 percent to 10.1 hours, the data showed. The wage data highlighted the economic damage from the March 11 disaster, which caused a record decline in factory output and decreases in retail sales, household spending and consumer confidence.
INDIA
Manufacturing growth rises
Manufacturing grew at the fastest pace in five months and exports climbed to a record, increasing pressure on the central bank to raise interest rates for the ninth time since the start of last year. The Purchasing Managers’ Index rose to 58 last month from 57.9 in March, HSBC Holdings PLC and Markit Economics said in an e-mail yesterday. A number above 50 indicates expansion. Merchandise exports surged 44 percent to a record US$29 billion in March from a year earlier, the commerce ministry said in an e-mailed statement yesterday. The Reserve Bank of India may lift its benchmark repurchase rate to 7 percent from 6.75 percent, according to 18 of 25 economists in a Bloomberg News survey ahead of the monetary policy announcement today. The remaining seven, including HSBC Group PLC, predict a 0.5 percentage point move to curb inflation, which is the highest among the so-called BRICS nations after Russia.
UNITED KINGDOM
House prices fall
House prices in England and Wales fell last month at their fastest annual pace in 18 months and are likely to slip further this year on fears about the economic outlook, Hometrack said yesterday. The property data firm’s monthly survey showed prices were down 3.3 percent last month compared with a year ago, the biggest decline since October 2009, when Britain was emerging from recession. Stronger demand left prices unchanged on the month, ending a nine-month run of falls. However, Hometrack said the pick-up in demand was likely to fade during the rest of the year as public spending cuts, tax rises and waning consumer confidence take their toll.
TNT reports fall in profits
TNT NV, the Dutch mail and global express company, has reported a 14 percent fall in first quarter profits because of high fuel costs and problems at both its major divisions. Net profit was 123 million euros (US$182 million), compared with 143 million euros in the same period a year earlier. However, revenues rose 4.3 percent to 1.11 billion euros on the back of growth at its loss-making international mail delivery arm, which competes in Germany and more recently in Italy. The overall increase masked continued declines at the core Dutch mail arm, which witnessed another 8.6 percent fall during the first three months. Because the domestic business is suffering under competition from the likes of Deutsche Post, TNT is to cut around 11,000 jobs, or a third of its mail service employees. It’s also going to ask shareholders later this month to approve a spin-off of its express arm, which is expected to grow eventually.
purpose: Tesla’s CEO sought to meet senior Chinese officials to discuss the rollout of its ‘full self-driving’ software in China and approval to transfer data they had collected Tesla Inc CEO Elon Musk arrived in Beijing yesterday on an unannounced visit, where he is expected to meet senior officials to discuss the rollout of "full self-driving" (FSD) software and permission to transfer data overseas, according to a person with knowledge of the matter. Chinese state media reported that he met Premier Li Qiang (李強) in Beijing, during which Li told Musk that Tesla's development in China could be regarded as a successful example of US-China economic and trade cooperation. Musk confirmed his meeting with the premier yesterday with a post on social media platform X. "Honored to meet with Premier Li
ARTIFICIAL INTELLIGENCE: The chipmaker last month raised its capital spending by 28 percent for this year to NT$32 billion from a previous estimate of NT$25 billion Contract chipmaker Powerchip Semiconductor Manufacturing Corp (力積電子) yesterday launched a new 12-inch fab, tapping into advanced chip-on-wafer-on-substrate (CoWoS) packaging technology to support rising demand for artificial intelligence (AI) devices. Powerchip is to offer interposers, one of three parts in CoWoS packaging technology, with shipments scheduled for the second half of this year, Powerchip chairman Frank Huang (黃崇仁) told reporters on the sidelines of a fab inauguration ceremony in the Tongluo Science Park (銅鑼科學園區) in Miaoli County yesterday. “We are working with customers to supply CoWoS-related business, utilizing part of this new fab’s capacity,” Huang said, adding that Powerchip intended to bridge
Dutch brewing company Heineken NV on Friday announced an investment of NT$13.5 billion (US$414.62 million) over the next five years in Taiwan. The first multinational brewing company to operate in Taiwan, Heineken made the statement at a ceremony held at its brewery in Pingtung County. It also outlined its efforts to make the brewery “net zero” by 2030. Heineken has been in the Taiwanese market for 20 years, Heineken Taiwan managing director Jeff Wu (吳建甫) said. With strong support from local consumers, the Dutch brewery decided to transition from sales to manufacturing in the country, Wu said. Heineken assumed majority ownership and management rights
Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI