GERMANY
Consumer confidence strong
A closely watched survey showed consumers remain confident, but underlying figures indicate rising financial concerns amid negotiations over Greek debt and the possibility of a British exit from the EU. The GfK research group yesterday said its forward-looking consumer climate index rose to 9.8 points for next month from 9.7 this month, driven by increases in consumers’ expectations about the general economic situation and their own propensity to buy. At the same time, the survey of 2,000 consumers showed increasing concerns about their own financial situation over the next year.
BRAZIL
Deficit plan approved
Congress early yesterday approved a deficit spending plan proposed by the government of interim president Michel Temer after 16 hours of debate. The government said it is facing a record 170.5 billion reais (US$48 billion) primary budget deficit this year, far higher than suspended president Dilma Rousseff’s earlier fiscal target of a 97 billion reais deficit. The new deficit target reflects what the economy team said is a significantly worse financial picture uncovered after Rousseff’s departure.
INTERNET
France raids Google offices
Police and two dozen computer experts raided Google’s Paris offices on Tuesday in a fraud probe, with the US Internet giant already suspected of owing 1.6 billion euros (US$1.7 billion) in back taxes. The French authorities suspect Google of “aggravated tax fraud and conspiracy to conceal [it],” the national financial prosecution service said in a statement. “We respect French legislation and are fully cooperating with the authorities to answer their questions,” a Google spokeswoman said.
INTERNET
Microsoft announces grants
Microsoft Corp is joining other tech giants attempting to deliver the Internet to remote parts of the world. The Redmond, Washington, company on Tuesday announced 12 grants to small firms around the world that provide online access, software or related services. The company said its smaller-scale approach of grants, averaging about US$75,000 apiece in places like Africa, India and rural Maine, is intended to better allow local entrepreneurs to provide services tailored to needs in specific regions.
STEELMAKERS
Javid meets Tata bosses
British Secretary of State for Business, Innovation and Skills Sajid Javid met with Tata Steel Ltd bosses in Mumbai, India, ahead of a crunch board meeting yesterday expected to discuss potential buyers for its loss-making UK assets. Tata Steel in March announced that it planned to sell its Port Talbot plant in Wales and other assets, putting 15,000 jobs at risk. Javid held discussions with Tata Group chairman Cyrus Mistry late on Tuesday, a day after a deadline passed for the submission of bids to acquire Tata Steel’s struggling British steelworks.
RETAIL
Best Buy outlook downbeat
Best Buy Co on Tuesday offered a disappointing profit outlook for the current quarter, weighed in part by a recent earthquake in Japan that hurt the availability of some highly profitable products. The consumer electronics chain also said its chief financial officer, Sharon McCollam, is stepping down. The company now expects adjusted earnings between US$0.38 and US$0.42 per share in the current quarter.
ISSUES: Gogoro has been struggling with ballooning losses and was recently embroiled in alleged subsidy fraud, using Chinese-made components instead of locally made parts Gogoro Inc (睿能創意), the nation’s biggest electric scooter maker, yesterday said that its chairman and CEO Horace Luke (陸學森) has resigned amid chronic losses and probes into the company’s alleged involvement in subsidy fraud. The board of directors nominated Reuntex Group (潤泰集團) general counsel Tamon Tseng (曾夢達) as the company’s new chairman, Gogoro said in a statement. Ruentex is Gogoro’s biggest stakeholder. Gogoro Taiwan general manager Henry Chiang (姜家煒) is to serve as acting CEO during the interim period, the statement said. Luke’s departure came as a bombshell yesterday. As a company founder, he has played a key role in pushing for the
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
CROSS-STRAIT TENSIONS: The US company could switch orders from TSMC to alternative suppliers, but that would lower chip quality, CEO Jensen Huang said Nvidia Corp CEO Jensen Huang (黃仁勳), whose products have become the hottest commodity in the technology world, on Wednesday said that the scramble for a limited amount of supply has frustrated some customers and raised tensions. “The demand on it is so great, and everyone wants to be first and everyone wants to be most,” he told the audience at a Goldman Sachs Group Inc technology conference in San Francisco. “We probably have more emotional customers today. Deservedly so. It’s tense. We’re trying to do the best we can.” Huang’s company is experiencing strong demand for its latest generation of chips, called
GLOBAL ECONOMY: Policymakers have a choice of a small 25 basis-point cut or a bold cut of 50 basis points, which would help the labor market, but might reignite inflation The US Federal Reserve is gearing up to announce its first interest rate cut in more than four years on Wednesday, with policymakers expected to debate how big a move to make less than two months before the US presidential election. Senior officials at the US central bank including Fed Chairman Jerome Powell have in recent weeks indicated that a rate cut is coming this month, as inflation eases toward the bank’s long-term target of two percent, and the labor market continues to cool. The Fed, which has a dual mandate from the US Congress to act independently to ensure