MACROECONOMICS
Japan output contracts
Japan’s factory output in November was weaker than first reported, with industrial production sliding 0.1 percent, revised data released yesterday showed, in the latest sign of slowing growth. The reading — which came after preliminary data had shown a 0.1 percent rise in output month-on-month — also marked the first contraction in three months. However, machinery orders — a key measure of capital spending — jumped 9.3 percent from October to a five-year high, suggesting a pick-up in corporate investment.
SHIPPING
Hyundai starts CSCL contract
South Korean shipbuilder Hyundai Heavy Industries yesterday said it had started construction on a Chinese order for the world’s largest container ships. China Shipping Container Lines (CSCL) awarded the contract for the five vessels — each with a capacity of 18,400 TEU (20-foot equivalent unit) container boxes — to Hyundai in May. Since the order was made, Hyundai said the vessels for CSCL had been further upgraded to a 19,000 TEU-capacity at the Chinese company’s request. Hyundai said in a statement that the first ship would be delivered in November. Each ship will boast a 400m long deck, while standing 30.5m high and 58.6m wide.
BREWERIES
AB InBev to buy Oriental
The world’s largest brewer, AB InBev yesterday announced a deal to buy South Korea’s Oriental Brewery Co Ltd (OB) from KKR and Affinity Equity Partners for US$5.8 billion. The deal brings Oriental Brewery, the leader in the South Korean beer market, back into the AB InBev fold after it was sold in 2009 during efforts to reduce the debt incurred in the merger of InBev and US brewer Anheuser-Busch. “We are excited to invest in South Korea and to be working with the Oriental Brewery team again,” AB InBev chief executive Carlos Brito said in a statement. “OB will strengthen our position in the fast-growing Asia Pacific region and will become a significant contributor to our Asia Pacific Zone.”
BANKING
Deutsche surprises with loss
Deutsch Bank, Germany’s biggest bank, announced late on Sunday a surprise net loss of 965 million euros (US$1.3 billion) in the fourth quarter because of litigation costs and weakening revenues. In a statement issued more than a week earlier than markets expected, co-CEOs Juergen Fitschen and Anshu Jain gave the loss figure, which amounted to 1.2 billion euros before taxes. The bank will post an overall net profit of 1.08 billion euros for last year, they said. The bank set aside 2.5 billion euros over the year to address lawsuits by US and EU market authorities over a raft of issues, including the rigging of interbank lending rates and alleged hiding of the risks of US subprime mortgages.
INSURANCE
Aviva, PT Astra form venture
Aviva PLC, Britain’s second-biggest insurer, has formed a joint venture with Indonesia’s PT Astra International, competing with firms, including Prudential PLC, vying for business in Southeast Asia. Astra Aviva Life will provide Aviva products to Astra, Indonesia’s largest publicly traded company, and its subsidiaries, including PT Bank Permata, the London-based company said in a statement on Friday. The deal, subject to regulatory approval, is scheduled to start later this year. Aviva CEO Mark Wilson said the deal underlined Aviva’s commitment to Asia, which contributed about 3.6 percent of operating profit in the first half of last year.
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
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
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
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