WTO ruling favors India
The WTO on Monday upheld in part a judgement that the US broke global trade rules by imposing import duties on Indian steel products, in a mixed ruling that also found elements in Washington’s favor. The WTO’s Appellate Body reversed some of the findings made by the organization’s dispute settlement panel in July and upheld others. It found in favor of both sides in technical elements of the dispute, but concluded that the US was “inconsistent with its obligations” and should be brought into line. India filed its complaint at the WTO in 2012, after Washington imposed duties of nearly 300 percent on imports of products including steel pipes.
Current account gap widens
India’s current account deficit widened more than estimated to its largest since the quarter through June last year as exports slowed and gold imports surged. The July-September shortfall in the broadest measure of trade widened to US$10.1 billion from US$7.8 billion the previous quarter, the Reserve Bank of India said in a statement on Monday. The gap amounts to 2.1 percent of GDP, lower than the level the central bank considers sustainable. The current account shortfall is forecast to keep widening in the next two quarters, Credit Analysis & Research Ltd economist Madan Sabnavis said, citing slowing exports.
NY sues Deutsche Bank
US federal authorities in New York have sued Deutsche Bank and other financial entities, alleging they dodged more than US$100 million in taxes with some fancy financial footwork. The lawsuit was filed on Monday in Manhattan. It seeks to recover more than US$190 million in taxes, penalties and interest. Manhattan US Attorney Preet Bharara said Deutsche Bank used shell companies to make tax liabilities disappear nearly 15 years ago. Deutsche Bank spokeswoman Renee Calabro said the bank addressed the government’s concerns about the transaction in a 2009 agreement with the US Internal Revenue Service. She said the government had abandoned its theory the bank was liable and it is unclear why it is pursuing the issue again.
Tesco warns on profit
Troubled British grocer Tesco has warned on full-year profit again, slashing its full-year outlook by almost one-third in the latest downgrade sparked by an accounting scandal and intense competition in its home market. The firm, the world’s No. 3 retailer, yesterday said that on the basis of the changes and investments it has made to date it now anticipates group trading profit for the financial year ending February next year will not exceed ￡1.4 billion (US$2.2 billion). According to its Web site, analysts previously forecast a consensus group trading profit of ￡1.94 billion for the year.
CLSA plans expansion
CLSA Ltd, the brokerage owned by Citic Securities Co (中信證券), plans to expand into investment banking globally to build on its existing research and brokering business. Hong Kong-based CLSA plans to hire bankers next year to provide mergers advisory, equity capital markets services and the provision of debt to companies, said Andrew Low (羅安君), the incoming head of the firm’s international investment banking unit. He declined to give details on the expansion. CLSA has more than 1,500 employees in 21 locations across Asia, Europe and the US.
Just a few years ago, the millennial generation — generally defined as those born from the early 1980s through the mid-1990s — was synonymous with youthful rebellion. However, now, as the millennials ease into early middle age, they are finding their path out of their parents’ basement to be a lot harder than it was for earlier generations. The fundamental problem is that millennials are not building wealth. The wealth of the median US household headed by someone 35 or younger has actually shrunk in inflation-adjusted terms since the mid-2000s, even as the wealth of older Americans has continued to grow. An
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range