Bond yield edges lower
The yield on Taiwan’s benchmark 10-year bonds was near a three-month low yesterday as a deteriorating outlook for the local economy spurs demand for the safest assets.
“Yields have been falling for a while because of the economic conditions,” said James Wang, a fixed-income trader at Yuanta Securities Co (元大證券) in Taipei. “Investors originally thought the central bank would not cut rates this month, but now there are some noises in the interest-rate swaps market suggesting a drop.”
Volkswagen models recalled
Three Volkswagen vehicle models — the Golf, Passat and Tiguan — have been recalled for inspections because an engine fault has been discovered, distributor Taikoo Motors Ltd (太古汽車) said yesterday.
Taikoo, the sole appointed Volkswagen importer in Taiwan, said there is a glitch in the fuel injection system of the 2009-2010 models, which are equipped with 2.0 turbo direct injection diesel engines. The fault affects 629 vehicles imported into Taiwan.
The fuel injection pipes can resonate under certain conditions, which is likely to lead to the formation of cracks in the long term. It could also cause fuel leakage and permanent engine failure following a flameout.
Taikoo Motors said it will notify the owners of the cars and added that the inspection and repair of the fault takes about one hour.
PChome denied trademark
Taiwan’s Intellectual Property Court ruled that “24h Shopping” (24h 購物) couldn’t be a trademark belonging to PChome Online (網路家庭) on the grounds that the phrase underscores the convenience of shopping online, but not an offer exclusive to a company’s brand.
The online shopping portal asserted its exclusive right to “24h Shopping” as it took the lead by launching a service in 2007 which guarantees that consumers could shop on its site and have their goods delivered within 24 hours.
Shoppers will be compensated with a NT$100 if PChome fails to deliver the products on time, it said.
Pegatron shares dip 1.7%
Shares of Pegatron Corp (和碩), a contract maker of notebooks, desktops and e-readers, slid 1.7 percent to NT$31.60 yesterday — its lowest close since Dec. 6, after an explosion was reported at its Chinese affiliate.
An explosion on Saturday afternoon at Ri-Teng Computer Accessory (Shanghai) Co’s (日騰電腦配件) factory injured employees and resulted in minor damage to some equipment.
The injured employees were kept at the hospital for observation after the explosion.
Ri-Teng is a Pegatron associate company.
“The automation equipment damaged by the explosion can be tuned and used again for production,” a Pegatron statement said. “The impact on production and business operations is expected to be minimal.”
Lavazza eyes Asia
Luigi Lavazza SpA wants to form partnerships in Asia as the Italian coffee maker seeks international growth.
China, India and Japan offer the most potential for Turin, Italy-based Lavazza, CEO Antonio Baravalle said in a telephone interview. He did not identify possible partners.
Lavazza, which owns 6 percent of Green Mountain Coffee Roasters Inc, plans to introduce its line of Lavazza-Keurig coffee machines to the US in December next year, Baravalle said.
Lavazza said Friday that this year’s sales were in line with the previous year’s at 1.25 billion euros (US$1.63 billion), while record raw-material prices led to a decline in profit.