MACROECONOMICS
Fed reports US growth
The US economy continued to expand last month and this month, helped by strength in consumer spending, a US Federal Reserve survey released on Wednesday indicates. All 12 of the Fed’s regions reported growth, with five — New York, Chicago, Minneapolis, Dallas and San Francisco — characterizing growth as “moderate” while the others reported “modest” growth. Boston and Richmond reported that growth came in at a slightly slower pace than the previous reporting period. The Fed’s survey, known as the Beige Book, is set to be used by central bank officials when they next meet on July 29 and July 30 to review interest rate policies.
AUTOMAKERS
New car sales rise in Europe
The number of new cars registered in Europe grew for the 10th consecutive month last month, according to industry data published yesterday, adding to evidence that the embattled sector is recovering. Sales of new cars rose by 4.5 percent last month to 1.2 million, the Association of European Automobile Manufacturers (ACEA) said, as the market continues the battle to shake off a recent slump. However, the number of new cars is still low, with the association saying the figure represented “the second-lowest level reached in the month of June since ACEA began the series last year with the enlarged EU.”
COMMUNICATIONS
KDDI, Sumitomo cooperate
Japanese mobile carrier KDDI Corp said yesterday that it planned to link up with trading house Sumitomo Corp in a deal to invest about US$2 billion to develop wireless networks in Myanmar, as the country opens up after years of military rule. The move would see the Japanese giants pair up for a joint venture with state-owned Myanmar Posts & Telecommunications. The deal is to see an investment of ¥200 billion (US$2.0 billion) over a decade to boost phone networks in a country where only about 10 percent of the population of 65 million have access to mobile phones, KDDI said, which is one of the lowest rates in the world.
RETAIL
First Starbucks in Colombia
US chain Starbucks on Wednesday opened its first branch in Colombia — a world famous coffee exporter — apparently unafraid it would be like selling sand at the beach. To gear up for a soft landing, the US company teamed up with local company Nutresa and picked a location in Bogota’s exclusive Parque de la 93 for upscale appeal. Starbucks “is looking to achieve a leadership position in the [Colombian] domestic market,” a Nutresa statement said. Colombia is the world’s leading exporter of smooth arabica and Starbucks has decided to sell 100 percent Colombian beans in all its Colombian outlets.
INTERNET
EBay forecast falls short
EBay Inc gave a sales outlook for the third quarter that fell short of estimates, as the biggest online marketplace struggles to attract more users after a data breach and changes to Google Inc’s search engine. Revenue in the current period is estimated to be US$4.3 billion to US$4.4 billion, the company said in a statement on Wednesday. Profit before certain items will be US$0.65 to US$0.67 a share. The company said it second-quarter sales rose 13 percent to US$4.37 billion, falling short of the average analyst estimate of US$4.39 billion. Net income climbed 5.6 percent to US$676 million, or US$0.53 a share, from US$640 million, or US$0.49, a year earlier.
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