GERMANY
Exports drop in May
Exports dropped significantly in May following two months of increases, adding to mixed signals about the strength of Europe’s biggest economy. The Federal Statistical Office yesterday said that exports were down 2.4 percent in calendar-adjusted terms compared with the previous month at 90.4 billion euros (US$116 billion). In year-on-year terms, exports were down 4.8 percent — led by a 9.6 drop in demand from other countries in the eurozone. The nation has so far has weathered the continent’s debt crisis relatively well — helped by its traditional export strength and a robust job market that is fueling domestic demand. The economy returned to modest growth in the first quarter after contracting during last year’s final three months, and is expected to pick up further.
FRANCE
Central bank expects growth
The Bank of France yesterday said it expected the struggling economy to do slightly better in the second quarter than previously expected, forecasting growth at 0.2 percent. The bank had previously forecast second-quarter growth at 0.1 percent. The economy entered recession in the first quarter of this year, contracting by 0.2 percent after shrinking by the same amount in the last quarter of last year.
INSURANCE
Floods to cost US$4.5bn
A leading insurance company says last month’s floods across central Europe will likely cost insurers up to US$4.5 billion. The Elbe, the Danube and other rivers overflowed their banks in early last month following persistent heavy rain, causing extensive damage in parts of Germany, the Czech Republic, Austria, Slovakia and Hungary. Swiss Re yesterday estimated that the total losses for the insurance industry will be between US$3.5 billion and US$4.5 billion. It put its own exposure at about US$300 million. The company said that “effective local prevention measures,” such as mobile flood barriers that were put up in the Czech capital, Prague, spared many regions from major losses.
AVIATION
San Miguel, ANA hold talks
San Miguel Corp, the Philippines’ largest company and owner of a 49 percent stake in Philippine Airlines Inc, held talks with ANA Holdings Inc about investing in the flag carrier. The discussions were preliminary, San Miguel said in a stock exchange filing. Ryosei Nomura, an ANA spokesman, confirmed the talks and said no decision has been made. San Miguel paid US$500 million for the stake in April last year. San Miguel is in talks with ANA and Emirates Airline on a strategic partnership in the carrier, the Philippine Daily Inquirer reported on Sunday. Emirates has not approached San Miguel, according to the statement from San Miguel, which came in response to the Inquirer report.
INVESTMENT
Softbank rating cut
Softbank Corp, led by billionaire Masayoshi Son, had its credit rating cut to junk by Standard & Poor’s after winning approval by the US Federal Communications Commission (FCC) of its US$21.6 billion bid to buy Sprint Nextel Corp. The rating was cut to “BB+,” the highest non-investment grade, from “BBB,” with a stable outlook, S&P said in a statement yesterday. The FCC announced on Friday that the deal is in the public’s interest, giving Son a position in the US market. A lower credit rating indicates a higher risk of a default and can raise borrowing costs.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
US CONSCULTANT: The US Department of Commerce’s Ursula Burns is a rarely seen US government consultant to be put forward to sit on the board, nominated as an independent director Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday nominated 10 candidates for its new board of directors, including Ursula Burns from the US Department of Commerce. It is rare that TSMC has nominated a US government consultant to sit on its board. Burns was nominated as one of seven independent directors. She is vice chair of the department’s Advisory Council on Supply Chain Competitiveness. Burns is to stand for election at TSMC’s annual shareholders’ meeting on June 4 along with the rest of the candidates. TSMC chairman Mark Liu (劉德音) was not on the list after in December last