MACROECONOMICS
US trade deficit shrinks
The US trade deficit shrank in June primarily on lower imports, according to official data released on Wednesday that some analysts said raises questions about consumer demand in the US. The trade deficit in goods and services fell in June to US$41.5 billion from a revised US$44.7 billion in May, the US Commerce Department said. It was the trade deficit’s second monthly decline in a row. June imports fell US$2.9 billion, or about 1.2 percent, from May, while June exports edged US$300 million higher to a new record of US$195.9 billion, a gain of 0.2 percent.
MACROECONOMICS
Canada trade surplus rises
Canada posted a larger trade surplus of C$1.9 billion (US$1.74 billion) in June as exports rose to a record high and imports fell slightly, the government’s statistics agency announced on Wednesday. The figure was up from C$576 million seen in the previous month, beating analysts’ expectations. Exports increased to C$45.2 billion, led by higher exports of unwrought precious metals and precious metal alloys, unwrought nickel and nickel alloys. Imports meanwhile decreased to C$43.3 billion.
RETAIL
Nestle profits fall in first half
Nestle SA saw its sales and profits fall in the first half of this year mainly due to a stronger Swiss franc. The maker of the Haagen-Dazs, Stouffer’s and Nescafe brands said yesterday its performance had been “resilient” in a global economy where emerging-market growth had slowed and developed markets face deflationary pressures and weak consumer confidence. The company said sales fell 4.8 percent to 42.981 billion Swiss francs (US$47.279 billion) from the same period a year ago. Net profit fell 9.4 percent to SF4.634 billion.
RETAIL
Adidas cuts profit forecast
Adidas AG, the world’s No. 2 sports gear maker, cut its profitability forecast for this year after revenue for the first half in North America dropped amid slumping demand for golf equipment and production and marketing costs rose. Operating profit should total 6.5 percent to 7 percent of sales, rather than the 8.5 percent to 9 percent predicted earlier, the German company said yesterday.
AUTOMAKERS
Tesla resolves China dispute
Tesla Motors Inc, the electric-car maker led by Elon Musk, said it had resolved a trademark dispute in China that threatened to complicate the company’s plans to increase sales in the world’s largest auto market. Zhan Baosheng (占寶生), who had registered rights to the Palo Alto, California-based company’s name in China before the automaker entered that market, agreed to settle the dispute “completely and amicably,” Tesla said in a statement on Tuesday. Zhan is set to transfer Web site names he registered in China, including tesla.cn and teslamotors.cn, to the carmaker, Tesla said without disclosing a value.
INTERNET
Yahoo hires Mike Kail
Yahoo said on Wednesday it had hired Mike Kail as its chief information officer, drawing a key technical executive from the internet video service Netflix. Kail is also to hold the title of senior vice president for infrastructure and is set to lead Yahoo’s information technology and data center operations, reporting to chief executive Marissa Mayer. The hiring is the latest by Mayer, who was hired from Google two years ago to revive the fortunes of the Internet pioneer.
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
TECH RELIANCE: Growth is increasingly reflecting an unequal K-shaped distribution, where technology sectors outperform and other industries struggle, an expert said Standard Chartered Bank has significantly raised its forecast for Taiwan’s economic growth to 9.5 percent this year, up from 7.6 percent previously, citing surging artificial intelligence (AI) demand driving exports, semiconductor production and investment. The upgrade reflects a sustained AI supercycle that continues to fuel demand for advanced chips and technology infrastructure, which form the backbone of Taiwan’s exports, the bank said in a report this week. “We raise our 2026 growth forecast to reflect a much stronger-than-expected first-quarter GDP figure,” Standard Chartered senior economist for greater China and Asia Tommy Wu (胡東安) said in the report. Driven largely by a 35.3 percent
Tokyo Electron's Taiwan unit today said in a written response that it respects the judicial process, takes the court ruling seriously and would not appeal in the Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) trade secrets case. Last month, a court fined the Taiwan unit of Japan's Tokyo Electron NT$150 million (US$4.74 million) in a case involving trade secrets related to TSMC's sensitive chip technology.
Two of Taiwan’s international carriers, Starlux Airlines Co (星宇航空) and EVA Airways Corp (長榮航空), have retained the five-star airline rating awarded by international airline review organization Skytrax. Starlux was awarded the distinction for a second consecutive year, while EVA Air received it for the 11th straight year, Skytrax said in statements released yesterday and on Thursday last week, respectively. The five-star rating is considered one of the airline industry's highest honors and is awarded following professional audits of airline product and frontline service standards, Skytrax said. The ratings are based on in-depth assessments using unified global quality standards rather than customer review scores
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