Moody’s warns Japan
Moody’s Investors Service said Japan must make progress in containing the world’s largest public debt burden after the government compiled a budget that showed a record level of reliance on debt sales. “Without improvement, there would be downward pressures on the rating,” Moody’s senior vice president Thomas Byrne said in an interview, while reiterating the nation’s “Aa3” rating with a stable outlook. “We will be watching developments in the course of this fiscal year, especially tax reform measures” and a recovery which could be hurt by a slowdown in Europe, the US and China, he said.
Toyota unveils Aqua model
Toyota Motor Corp, Asia’s largest automaker, was scheduled to start selling its smallest hybrid car in Japan yesterday to compete with Honda Motor Co for younger consumers seeking an entry-level fuel-efficient vehicle. The Aqua compact hybrid, to be marketed as the Prius C in the US, will cost from ￥1.69 million (US$21,700), Toyota said in a statement. The company aims to sell 12,000 Aquas a month in its home market. Honda’s Fit compact car, sold in hybrid and conventional gasoline-engine versions, outsold the larger Prius in the first six months of this year in Japan, underscoring consumer demand for smaller fuel-efficient cars.
Japan Hotel shares surge
Shares in Japan Hotel & Resort Inc, a real estate investment trust, surged the most in eight months after the firm said it would merge with Nippon Hotel Fund Investment Corp to boost its asset size and share performance. Japan Hotel jumped 5.8 percent, the most since April 22, to ￥164,900 in Tokyo. Nippon Hotel gained 1.2 percent to ￥187,300, but has declined 29 percent this year. Nippon Hotel plans to split its shares into 12 and sell 1.16 million new shares to pay for the acquisition, the companies said in a joint statement on Thursday. The transaction is valued at ￥17.5 billion based on Nippon Hotel’s closing price on Wednesday, according to data compiled by Bloomberg. Japan Hotel will be delisted by March 28, according the statement.
Agthia Group to buy Pelit Su
Abu Dhabi state-backed food and drink company Agthia Group is to buy Turkish spring water producer Pelit Su for an undisclosed amount. Agthia said on Sunday that it expected to acquire all of Pelit Su’s shares during the first half of next year. Financial details were not disclosed. Agthia chairman Rashed Mubarak al-Hajeri said the deal was in line with the company’s plans to expand its geographic reach. Agthia’s business is currently focused on the Arab Gulf states and Egypt. Pelit Su is a family-run bottled water producer established in 2009.
Half billion deficit forecast
The government expects to run a budget deficit of nearly half-a-billion US dollars next year as it works to move beyond its financial difficulties. The nation’s official media office said on Sunday that the projected 1.83 billion dirham (US$499 million) deficit would be less than half of its shortfall this year. The emirate expects to spend 32.26 billion dirhams next year while bringing in 30.43 billion dirhams, mainly through service fees, customs duties, oil revenues and dividends paid by its state-run companies.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s