Toyoda quits Olympic group
Toyota Motor Corp president Akio Toyoda has stepped down from the Tokyo 2020 Olympics organizing committee, amid reports that costs for the event have ballooned to about six times original estimates. Toyoda said late on Monday that he would quit as vice president of the main organizing group, opting instead to support the games as head of the Keidanren’s Olympic lobbying group. The Keidanren is Japan’s biggest business federation. Toyota, the world’s biggest automaker, signed a nearly US$1 billion global Olympic sponsorship deal this year.
Toshiba projects record loss
Toshiba Corp fell to the lowest in more than six years in Tokyo after forecasting a record ￥550 billion (US$4.5 billion) loss and announcing plans to cut more jobs as it restructures businesses. The stock finished down 12 percent at ￥223.5, its lowest since March 2009. Including a decline of 9.8 percent on Monday, the Japanese company had lost about US$2 billion of market value over the past two days.
McDonald’s cutting stake
McDonald’s Holdings Co (Japan) fell the most in almost five years after the Nikkei Shimbun reported that its US parent plans to cut its shareholding in the loss-making unit that is struggling to recover from a series of food scandals. McDonald’s Corp, the world’s largest restaurant chain and owner of about half of the Tokyo-based company, is seeking to sell 15 percent to 33 percent of the outstanding shares and an executive has met five or so potential buyers, including trading houses and investment funds, Nikkei reported yesterday, without saying where it got the information. The stock closed down 7.85 percent at ￥2,712 — slightly off the day’s low of ￥2,710 — while the benchmark TOPIX was little changed.
Recruit to buy USG People
Recruit Holdings Co has agreed to buy USG People NV of the Netherlands for 1.42 billion euros (US$1.55 billion), as Japan’s biggest provider of temporary staff seeks to boost growth in Europe. Recruit is to pay offer 17.50 euros in cash for each share in Almere, Netherlands-based USG, the companies said in a statement yesterday. That is 31 percent above Monday’s closing share price. The offer has been endorsed by USG’s executive and supervisory boards. The purchase builds on Recruit’s plans to become a leader in human resources by the end of the decade.
Weinstein announces deal
The Weinstein Co continued the expansion of its television business with the announcement on Monday of a deal to produce and distribute shows in partnership with American Media, known for tabloid publications like the National Enquirer and Star, and reality show producer Jupiter Entertainment. The new venture is also expected to include film and digital projects, but will initially focus on unscripted television programming, the companies said. While tightening its film operation with a staff reduction and a cut in the number of releases, Weinstein has expanded its television portfolio, as part of a strategy that aims eventually to generate cash, possibly with a spinoff of the company’s television unit. Earlier this year, Weinstein had been involved in a possible deal to sell its TV unit to ITV of Britain, but that transaction faltered.
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
‘LITTLE CHOICE’: The airline said it expected only about 8,000 of its 29,000 employees to be working by next month, but hoped to have 21,000 in the next two years Qantas Airways Ltd plans to cut at least 6,000 jobs and keep 15,000 more workers on extended furloughs as Australia’s largest airline tries to survive the coronavirus pandemic. Qantas yesterday announced a plan to reduce costs by billions of dollars and raise fresh capital. The plan includes grounding 100 planes for a year or more and immediately retiring its six remaining Boeing Co 747 planes. Chief executive Alan Joyce said the airline has to become smaller as it braces for several years of much lower revenues. He said the furloughed workers faced a long interruption to their airline careers. “The actions that we’re taking
Apple Inc’s decision to stop using Intel Corp processors in its Mac computers and switching to its own chips might benefit Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and boost Taiwan’s high-tech exports, Australia and New Zealand Banking Group (ANZ) said in a note on Tuesday. The US tech giant announced the “Apple silicon” initiative at its annual Worldwide Developers’ Conference, which started on Monday. The company said the first Mac powered by its own chips would debut by the end of this year and all product lines might shift to the new architecture in the next two years. TSMC is likely to
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