SOUTH KOREA
EU crisis slows economy
The economy grew at a slower pace than initially estimated in the June quarter, data showed yesterday, increasing pressure on the central bank to cut interest rates again. With the deepening eurozone debt crisis hitting exports at a time of cooling consumption, the bank revised its 0.4 percent growth figure for the second quarter down to 0.3 percent from the January to March period. The growth rate was one-third of the 0.9 percent posted in the first quarter and marked the slowest increase in GDP since a 0.3 percent expansion in the fourth quarter of last year. On an annual basis, GDP grew 2.3 percent from the second quarter last year.
FRANCE
Unemployment rising
Unemployment climbed to 9.7 percent of the workforce in the second quarter of this year, an increase of 0.1 percent from the first three months, official data showed yesterday. When data for the country’s overseas territories was included, the second-quarter rate came to 10.2 percent, national statistics office Insee said, a level last seen in 1999. A total of 2.8 million people were registered as looking for work in the eurozone’s second-biggest economy.
SWEDEN
Riksbanks cuts key rate
The central bank has cut its key interest rate by one-quarter of a percentage point to 1.25 percent, saying economic growth will slow due to the downturn in the eurozone. The Riksbank said yesterday that weak demand from the 17-country eurozone would “dampen” national exports and hold back the economy, which it said had been “unexpectedly resilient” this year. The economy grew 2.2 percent in the second quarter from a year earlier.
FINANCE
IMF urges Irish investment
The IMF urged the EU on Wednesday to allow its stability fund to invest in Irish banks as it freed up fresh funds for the country’s restructuring program, after the fund released US$1.15 billion of its bailout lending to Ireland on Wednesday. IMF deputy managing director David Lipton encouraged the move, floated two months ago, to have the European Stability Mechanism invest directly in key Irish banks to alleviate the pressure on the Irish government’s finances.
ELECTRONICS
Samsung monopoly probed
Samsung Electronics Co is under investigation by South Korea’s fair trade watchdog over whether it is abusing its dominant position in the wireless market to disadvantage Apple Inc. The Fair Trade Commission opened the probe in March into whether Samsung is using its monopolistic power to negotiate higher license fees from Apple. In January, Europe’s antitrust watchdog launched a similar investigation into Samsung over whether it is fairly licensing its patented wireless technology to other mobile phone makers.
AVIATION
Qantas,Emirates ink deal
Qantas Airways says it has signed a 10-year partnership deal with rival Emirates Airlines. The move is a bid by the Australian airline to boost its struggling international business. Qantas said yesterday that it will move its hub for European flights from Singapore to Dubai, coordinate with Emirates on ticket pricing and scheduling and benefit-sharing starting in April next year. The alliance is subject to regulatory approval. Qantas said it will end its 17-year alliance with International Airlines Group’s wholly-owned subsidiary British Airways next year on March 31.
purpose: Tesla’s CEO sought to meet senior Chinese officials to discuss the rollout of its ‘full self-driving’ software in China and approval to transfer data they had collected Tesla Inc CEO Elon Musk arrived in Beijing yesterday on an unannounced visit, where he is expected to meet senior officials to discuss the rollout of "full self-driving" (FSD) software and permission to transfer data overseas, according to a person with knowledge of the matter. Chinese state media reported that he met Premier Li Qiang (李強) in Beijing, during which Li told Musk that Tesla's development in China could be regarded as a successful example of US-China economic and trade cooperation. Musk confirmed his meeting with the premier yesterday with a post on social media platform X. "Honored to meet with Premier Li
ARTIFICIAL INTELLIGENCE: The chipmaker last month raised its capital spending by 28 percent for this year to NT$32 billion from a previous estimate of NT$25 billion Contract chipmaker Powerchip Semiconductor Manufacturing Corp (力積電子) yesterday launched a new 12-inch fab, tapping into advanced chip-on-wafer-on-substrate (CoWoS) packaging technology to support rising demand for artificial intelligence (AI) devices. Powerchip is to offer interposers, one of three parts in CoWoS packaging technology, with shipments scheduled for the second half of this year, Powerchip chairman Frank Huang (黃崇仁) told reporters on the sidelines of a fab inauguration ceremony in the Tongluo Science Park (銅鑼科學園區) in Miaoli County yesterday. “We are working with customers to supply CoWoS-related business, utilizing part of this new fab’s capacity,” Huang said, adding that Powerchip intended to bridge
Dutch brewing company Heineken NV on Friday announced an investment of NT$13.5 billion (US$414.62 million) over the next five years in Taiwan. The first multinational brewing company to operate in Taiwan, Heineken made the statement at a ceremony held at its brewery in Pingtung County. It also outlined its efforts to make the brewery “net zero” by 2030. Heineken has been in the Taiwanese market for 20 years, Heineken Taiwan managing director Jeff Wu (吳建甫) said. With strong support from local consumers, the Dutch brewery decided to transition from sales to manufacturing in the country, Wu said. Heineken assumed majority ownership and management rights
Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI