S&P forecasts 5.3% growth
Standard & Poor’s Ratings Services (S&P) yesterday projected economic growth of 5.3 percent in the Asia-Pacific region next year and 5.2 percent for 2017, as strong consumer demand offsets the slower growth in exports and productivity in the region. As for emerging Asia, the ratings agency predicted growth of about 6 percent each for next year and in 2017. “India has overtaken China as the region’s growth leader, at least for now,” S&P said in a report. GDP growth for the so-called “Tiger” economies — Taiwan, Hong Kong, Singapore and South Korea — is forecast to show a modest recovery in the next two years, with growth remaining below 3 percent, S&P said. However, growth in the Asia-Pacific region in the next two years will still be better than that in the rest of the global economy, the report said.
Money supply increases
Annual growth of the M1B and M2 money supply increased last month mainly due to continued net foreign capital outflows, the central bank said on Tuesday. M1B, a narrow measure of the amount of money in circulation, last month rose 6.75 percent from a year earlier, while the broader M2 monetary measurement — which includes M1B, time deposits, foreign currency deposits and mutual funds — increased 6.58 percent, the bank said in its monthly report. That compares with annual growth rates of M1B and M2 at 6.62 percent and 6.5 percent respectively in September. For the first 10 months, the average annual growth rates of M1B and M2 were 6.01 percent and 6.4 percent respectively, the bank said.
Tax bill may spur sales
If an amendment to the Commodity Tax Act (貨物稅條例) passes its third reading at the Legsislative Yuan by the end of this year, it could motivate motorists to replace their old vehicles and increase new car sales in Taiwan by about 250,000 units in the next five years, Yulon Nissan Motor Co (裕隆日產) chairman Tsay Wen-rong (蔡文榮) said yesterday at an investors’ conference. The revision bill aims to trim commodity tax by up to NT$50,000 per vehicle for new car and motorcycle buyers in exchange of either exporting or discarding their used vehicles. Next year, the nation’s new car sales may grow to between 460,000 and 470,000 units — the highest level since 2004 — from about 410,000 units this year, Tsay said.
Merger amendment passes
An amendment to the Financial Institution Merger Act (金融機構合併法) passed its third reading on Tuesday at the Legislative Yuan. The amendment increases the incentives for financial institutions to conduct merger and acquisition (M&A) activities. Under the amended law, in addition to newly issued shares, surviving institutions or newly incorporated institutions may use shares of other institutions, cash or other property of different types or in different proportion as consideration to the shares held by the shareholders of the dissolved institutions. The law also provides tax incentives related to mergers of financial institutions by exempting them from securities transaction tax and business tax, while the land value increment tax of lands owned by dissolved institutions may be deferred until the lands are transferred. Moreover, the period to amortize the goodwill generated due to mergers will be extended from five years to 15 years.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion