Tue, Jul 31, 2012 - Page 14 News List

[ BUSINESS BRIEFS ]

TAIEX rises 0.48 percent

The TAIEX rose 0.48 percent yesterday, boosted by Friday’s gains on Wall Street, but the market’s future direction remains uncertain ahead of the release of new economic data and a meeting of the US Federal Reserve.

The government is expected to downgrade its forecast for Taiwan’s full-year economic growth rate today, and the Fed’s policymakers will meet in Washington tomorrow to decide whether to lower a key interest rate.

The weighted index ranged between a high of 7,184.31 and a low of 7,146.07 before closing down 34.39 points at 7,158.88 on turnover of NT$64.37 billion (US$2.14 billion).

A total of 2,237 stocks closed up and 1,766 finished down, while 466 remained unchanged.

In trading yesterday, all of the market’s eight broad stock categories closed up, with food shares posting the highest gains, finishing up 1.6 percent.

China calls for more innovation

China’s Cabinet called yesterday for stepped-up innovation and an increased role for private investment in state-dominated industries, warning that the country’s economy was under intensifying pressure.

The State Council, or Cabinet, said in a statement that officials should prioritize guiding private investment into key industries including railways, municipal administration, energy, telecommunications, finance, health and education.

However, the announcement gave no details of possible new projects or how much the government might spend.

HSBC says sorry to shareholders

HSBC PLC apologized to shareholders yesterday as it disclosed a US$700 million charge to cover the cost of US penalties for lapses, including its failure to enforce money-laundering controls in Mexico.

The provision was announced as Europe’s biggest bank reported an 11 percent advance in pretax profit in the first half of the year following US$4.3 billion in gains from asset sales.

For the six months ending June 30, the bank made a pretax profit of US$12.7 billion, up from US$11.5 billion a year earlier. As well as costs relating to infractions in Mexico, the US$700 million provision also takes in possible penalties for violations of the US Bank Secrecy Act in a case going back two years, and any penalties from continuing investigations of possible violations of economic sanctions against Iran and other countries.

Earlier this month, HSBC paid a fine of US$28 million to Mexican authorities for non-compliance with money laundering controls.

UMC Fab certified green

United Microelectronics Corp (UMC, 聯電), the world’s No. 2 contract chipmaker, said yesterday that its 300mm Fab 12A P3 & P4 in Greater Tainan has gained LEED-NC (Leadership in Energy and Environmental Design — New Construction) Gold recognition from the US Green Building Council.

UMC said in a statement that this was another green building achievement for P3 & P4, following its EEWH Gold certification from Taiwan last year.

“Fab 12A P3 & P4’s green building certification from both Taiwan and the US demonstrates UMC’s green commitment and is a significant milestone in our efforts to promote CSR [corporate social responsibility] and sustainability,” UMC chief executive Sun Shih-wei (孫世偉) said in the statement.

NT eases up against US dollar

The New Taiwan dollar rose against the US dollar yesterday, adding NT$0.02 to close at NT$30.080. Turnover totaled US$545 million during the trading session.

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