MINING
S&P lowers BHP’s rating
The outlook on BHP Billiton Ltd’s credit rating was reduced to negative by debt assessor Standard & Poor’s (S&P) as lower iron ore and oil prices threaten profits at the world’s largest mining company. S&P, which has cut its price assumptions for iron ore, opted to maintain the stable outlook on Rio Tinto Group, which had been placed on watch for a possible negative ratings action along with BHP and six other producers of the steelmaking material. BHP’s credit score was affirmed at “A+,” the fifth-highest level, while Rio Tinto is two steps lower at “A-.” S&P’s so-called CreditWatch on both companies has ended.
SOUTH KOREA
Current account surplus up
The nation’s current account surplus widened to the most in four months in March, as imports declined more than exports. The excess rose to US$10.4 billion, after narrowing for three consecutive months, the Bank of Korea yesterday said in a statement. The goods trade surplus widened to US$11.2 billion, the most on record. Exports in the balance of payments data fell 8.4 percent in March from a year earlier, while imports declined 17 percent, according to the statement.
AUTOMAKERS
GM focusing on India
General Motors (GM) aims to grab at least 5 percent market share in India within the next decade, as it sees that market overtaking Japan as the world’s third-biggest with projected annual sales of 8 million vehicles by 2025. The carmaker, which is losing money in India even after 18 years there, will unleash a product blitz aimed at reviving sales, and will make India a new global manufacturing and export hub, taking some of the strain off South Korea, where labor costs have ballooned. As part of a strategic plan due to be announced later this year, GM will launch newly designed subcompact cars into India. India’s auto market has been steady for the past few years, with annual sales of just above 3 million vehicles, GM head of international operations Stefan Jacoby sees that changing with Indian Prime Minister Narendra Modi vowing to reboot the economy.
ECONOMY
Indonesia’s inflation rises
Indonesia’s inflation accelerated to 6.79 percent last month, spurred by higher fuel costs after global oil prices rebounded, official data showed yesterday. The year-on-year consumer price index rose from 6.38 percent in March, the nation’s statistics agency said. At the start of the year, the government almost completely abolished a decades-old fuel subsidy regime and let prices float with the market. However, global oil prices rebounded by about 20 percent last month, owing to several factors. Pump prices in Indonesia rose, as did the price of public transport.
GREECE
Talks make headway
Officials say talks between Athens and its international creditors on how to stave off bankruptcy have made headway and will continue with the aim of reaching an agreement later this month. Officials both in Brussels and Athens said progress was visible during talks involving Greek, eurozone and IMF negotiators over the weekend, and said negotiations would continue. An official in Athens yesterday said that “there have been many important steps that bring an agreement closer.” One eurozone official said there was “convergence on some issues,” but more work was needed on others. Athens must make 200 million euro (US$222.9 million) payment to the IMF tomorrow.
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