Japan bolsters war chest
Japan said yesterday it would bolster its currency market intervention war chest by ￥30 trillion (US$385 billion), the second-biggest increase on record, as it moves to tame the soaring currency. The move came as Japanese exporters, a key driver of the country’s economy, continue to complain that a strong yen makes their products less competitive overseas and erodes the value of repatriated profits. “With this, we are preparing ourselves so that we can take resolute decisions at any moment in any situation,” Japanese Minister of Finance Jun Azumi told a press conference. The plan, included in a fourth ￥2.53 trillion extra budget approved by the Cabinet yesterday, would raise the accumulated total amount the government is allowed to borrow from the market to finance intervention to ￥195 trillion.
Consumers still confident
Consumer confidence is holding up in the face of the eurozone debt crisis as rising employment and incomes helped to offset looming recession fears, a poll found yesterday. GfK released its latest index of household confidence, with the barometer forecast to remain steady at 5.6 points next month, unchanged from this month, a statement said. “Despite increased economic risks and a further intensification of the debt crisis, Germans are looking to the future positively again,” GfK said.
Japanese sales set to rebound
Japan’s domestic auto sales will rebound next year as the country recovers from its biggest postwar disaster and the government extends tax breaks and introduces subsidies, an industry group said. Demand for cars, trucks and buses in Japan may grow by about 900,000 units next year after a record 14 percent drop this year, Toshiyuki Shiga, chairman of the Japan Automobile Manufacturers Association, said yesterday. “We expect car sales to grow at the 2009 pace when tax cuts and subsidies were introduced,” Shiga said.
Central bank jittery
Australia’s central bank yesterday said there was a “non-trivial” possibility of a severe contraction in the eurozone economy, leaving the door open for further interest rate cuts next year. The Reserve Bank of Australia said downside risks to the global economy from Europe’s sovereign debt woes had increased of late, “though the timing and magnitude of any effects ... remained very difficult to predict.” The bank cut the official interest rate by 25 basis points for a second consecutive month to 4.25 percent this month, and the meeting’s minutes, published yesterday, showed European jitters were its main concern.
US’ Fed to issue new rules
The US Federal Reserve will issue capital and liquidity rules this week reshaping supervision of the riskiest, largest banks and those with more than US$50 billion in assets, a government official familiar with the matter said. The Dodd-Frank Act requires the Fed to impose heightened standards, including stricter capital levels for systemic banks with more than US$50 billion in assets and non-bank systemic institutions. The stricter standards also target liquidity, risk management structure, credit reporting, concentration limits, stress tests, contingent capital and short-term debt limits.
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, is to issue NT$13.9 billion (US$469.5 million) in unsecured bonds to help fund its plan to expand production capacity, it said on Friday. In a Taiwan Stock Exchange filing, TSMC said the bonds would comprise three tranches: NT$5.7 billion payable over five years, NT$6.3 billion over seven years and NT$1.9 billion over 10 years. The interest rates would be 0.58 percent on the five-year bonds, 0.65 percent on the seven-year ones and 0.67 percent on the 10-year tranche, TSMC said. Capital Securities Corp (群益金鼎證券) is to serve as the main underwriter in