Inflation pressure easing
Global inflationary pressure is easing as the world economic recovery slows, the central bank said in a report released yesterday, which central bank Governor Perng Fai-nan (彭淮南) will present to the legislature tomorrow.
Demand for the US dollar has contributed to a decline in Asian currencies, the central bank said, adding that it would step into the market to curb irregular swings in the New Taiwan dollar.
The nation’s real-estate market has also cooled since June, the bank said.
Polaris credit rating raised
Taiwan Ratings Corp (中華信評), the local arm of Standard & Poor’s, yesterday upgraded its long and short-term credit ratings for Polaris Securities Co (寶來證券) by one notch to “twAA-” and “twA-1+” respectively, upon the completion of a share swap scheme to make the brokerage a full subsidiary of Yuanta Financial Holdings Co (元大金控).
The outlook on Polaris Securities’ long-term rating is positive, the ratings agency said in a statement.
Polaris Securities’ credit profile could improve further with access to the resources of Yuanta Financial, Taiwan Ratings said.
The brokerage will be a core member of the conglomerate because its business provides integral support to the group’s -securities-centric strategy, it added.
Yuanta Financial’s acquisition of Polaris Securities received shareholder and regulatory approval on June 28 and Aug. 29, respectively.
Bank to sell NT$100bn in CDs
The central bank will auction NT$100 billion (US$3.27 billion) in 364-day certificates of deposits (CD) on Friday and issue the debt on Oct. 11, it said in a statement yesterday.
The upcoming sale of the 364-day CDs will mark the central bank’s 19th such sale since April last year, as it seeks to absorb excess funds in the market. Its past 18 sale of such instruments has the equivalent of increasing banks’ reserve requirement ratio by 4.5 percentage points.
The central bank’s CDs are issued to eligible financial institutions, including commercial banks, credit cooperatives, trust investment firms, bills finance companies and Chunghwa Post Co (中華郵政).
The bank now has NT$1.2 trillion in outstanding 364-day CDs.
New iPhone coming next month
Apple Inc’s next iPhone is expected to be available in Taiwan as early as next month, according to electronics distributor Synnex Technology International Corp (聯強國際).
The new handset will be sold through the nation’s three largest operators, Dicky Chang, general manager of Group Telecom Business Development at Taipei-based Synnex, said in an interview yesterday.
Apple has not yet confirmed the shipment date for Taiwan, Chang said.
NT dollar slides
The New Taiwan yesterday fell NT$0.081 to close at NT$30.587 against the US dollar.
Turnover was US$910 million.
TAIEX plunges almost 3%
Taiwan’s benchmark index plunged 2.93 percent yesterday, dragged down by Wall Street’s drop of more than 2 percent on Friday, which fueled concerns that the global economy might be headed toward a recession.
The TAIEX closed down 211.41 points to end at 7,013.97 on turnover of NT$80.45 billion.
All eight main sectors on the exchange closed down, with the financial sector suffering the heaviest losses, plunging 5 percent.
A total of 890 stocks closed up, 2,843 were down, and 312 remained unchanged.
‘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