Industrial profit growth rises
Industrial profit growth rebounded last month, adding to signs that the world’s second-biggest economy is stabilizing after a two-quarter slowdown and an interbank lending squeeze in June. Net income rose 12 percent from a year earlier after gaining 6.3 percent in June, the statistics bureau said yesterday. Power, telecommunications, and auto manufacturing contributed to the increase, while coal miners’ profits slid.
Business confidence up
Business confidence rose for the fourth month in a row this monthy, data showed yesterday, slightly exceeding expectations for the economy which is the biggest in Europe. The Ifo economic institute’s closely watched business climate index rose to 107.5 points this month from 106.2 points last month. Analysts polled by Dow Jones Newswires had expected a slightly lower increase.
Seoul scraps KDB plan
South Korea plans to keep a controlling stake in Korea Development Bank (KDB) to support domestic industry, scrapping a five-year-old plan to privatize the nation’s biggest policy lender. The Financial Services Commission will this year submit a revised version of the KDB Act, a mandate to break up KDB Financial Group Inc, the regulator said in a statement yesterday. Under the revision, the government would merge policy lender Korea Finance Corp with Korea Development Bank by July next year, while selling the brokerage unit and other assets. The revision is subject to parliament approval.
Lira hits record low
The lira fell to a record low level early yesterday on signals of a tightening of US monetary policy which have hit emerging market currencies hard. The lira plunged to 2.0095 to the US dollar in initial trading, rallying later to 2.0028 from 1.9920 at the close on Monday when the central bank sold US$350 million in defense of the lira. The main Turkish stock market fell by 1.66 percent in morning trading.
AstraZeneca buys firm
AstraZeneca yesterday said that it has agreed to buy US-based cancer drugs company Amplimmune, as the Anglo-Swedish pharmaceuticals group seeks to bolster its flagging pipeline of new products. Under the deal, MedImmune will acquire 100 percent of Amplimmune’s shares for an initial price of US$225 million, with another US$275 million deferred until it reaches key drug development milestones.
Breast implant suit filed
About 300 women with faulty PIP breast implants have filed suit seeking US$54.7 million in damages from three European companies, their attorney said on Monday. “We have filed a class-action suit against France’s Poly Implant Protheses [PIP], Germany’s TUV Rheinland [quality control] and German insurer Allianz,” Virginia Luna told reporters, warning that the total damages sought could be vastly higher since about 15,000 women are believed to have been affected in the country.
Yahoo buys IQ Engines
Yahoo on Monday confirmed that it has bought image search specialty startup IQ Engines to add the company’s technology to its Flickr photo service. IQ Engines is known for software that analyzes, sorts and categorizes images using techniques including facial recognition.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to