Q2 GDP edged up 0.2%
Economic recovery remained lackluster after official figures released yesterday showed GDP rising by only 0.2 percent in the second quarter of the year. The preliminary growth figure, which is subject to revision, was in line with market expectations. The weak second quarter followed six months of essentially no growth, with a drop of 0.5 percent in the fourth quarter of last year followed by a gain of 0.5 percent in the first quarter.
Baidu profit surges 95%
Baidu Inc (百度), which operates China’s dominant search engine, said yesterday its quarterly profit jumped 95 percent on traffic growth and strong spending by big advertising customers. Profit for the three months ending June 30 was US$252.6 million and revenue rose 78.4 percent from a year earlier to 3.4 billion yuan (US$528.4 million), the Beijing-based company said. Baidu expects continued strong growth this year and forecast a 75.1 percent to 79.5 percent increase in total revenue for the July-to-September quarter.
Google buys PittPatt
Google on Monday said it had bought a computer vision startup spun out of the robotics institute at Carnegie Mellon University. The California-based Internet giant did not disclose the financial terms of its deal to buy Pittsburgh Pattern Recognition, referred to as “PittPatt,” which was launched in 2004. The founders of the company specialized in enabling machines to identify objects and spatial relationships between them.
ARM sales beat estimates
ARM Holdings PLC, the designer of chips used in Apple Inc’s iPhones, posted second-quarter revenues of ￡117.8 million (US$191 million), higher than the ￡109 million estimate in a Bloomberg survey of analysts. ARM predicted that revenue for the second half would be in line with market expectations. Meanwhile, French-Italian chipmaker STMicroelectronics reported on Monday disappointing quarterly results and a weak sales outlook. The company said second-quarter net profit rose 18 percent from a year ago to US$420 million on sales of US$2.57 billion. However, it warned that sales in the third quarter would be 2 to 5 percent lower than the second quarter.
Netflix warns of slow growth
US video giant Netflix reported on Monday revenue rose 52 percent in the second quarter to US$789 million, short of the US$791.5 million expected by Wall Street analysts, and said it expected slower US subscriber growth this quarter. Net profit was up 55 percent to US$68 million. Netflix CEO Reed Hastings said in a letter to shareholders he expected a recent pricing change to result in some US subscribers dropping the Internet streaming and DVD-by-mail service.
RIM to lay off 2,000
Faced with tough competition and falling profits, BlackBerry maker Research In Motion Ltd (RIM) is cutting 2,000 jobs as part of a cost-savings plan announced last month and is shuffling some senior executives. The job cuts amount to about 10 percent of the company’s workforce. The company said on Monday it would notify affected employees this week. RIM also said it was naming two executives to take on different parts of the role of chief operating officer, after Don Morrison went on medical leave last month.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
‘ONE-STOCK SHOW’: Turnover hit an all-time high as TSMC continued to determine the local market’s direction and surpassed Visa in market capitalization The TAIEX early yesterday hit an all-time intraday high on the back of soaring Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares, before tumbling back to the previous day’s close as the contract chipmaker could not single-handedly prop up the index. The TAIEX rose more than 400 points in the first 20 minutes of trading to hit a record 13,031.7 points, but later pared its gains to close down 0.01 percent at 12,586.73. Turnover was NT$343.252 billion (US$11.63 billion), the highest in the Taiwan Stock Exchange’s history. TSMC continued to dictate the market’s direction, as its early surge by the daily