Japan sees output decline
Japan’s industrial production declined more than economists forecast in another sign of sluggishness for the world’s third-largest economy as it struggles to recover. Output declined 2.3 percent in May from April when it rose 0.5 percent, the Japanese Ministry of Economy, Trade and Industry reported yesterday. The weak reading on production, along with Wednesday’s report that retail sales were flat in May and data showing another monthly drop in exports, adds to concern that Japan’s recovery is faltering after the economy returned to growth in the first quarter.
Argentina reports growth
Argentina’s economy grew 0.5 percent in the first quarter, the authorities said on Wednesday, the first such figure since the conservative government overhauled the controversial state statistics system on taking power. The preliminary growth estimate published by the national statistics institute INDEC beat forecasts by private analysts. They had expected a contraction of about 1 percent from the same period a year earlier.
Monsanto seeks raised bid
US agrochemicals giant Monsanto Co is hoping Bayer AG will increase its takeover offer, but the higher price could prove a bitter pill to swallow for the German group’s shareholders, the business daily Handelsblatt reported yesterday. “The Americans are suggesting an increase in the offer price of between US$10 and US$15 per share from US$122 at the moment,” the newspaper said, quoting unnamed sources. That would mean that the German company would have to put an additional US$5 billion to US$7 billion on the table, compared with the current offer price of US$62 billion, Handelsblatt said.
Belgium loses Facebook case
The Belgian data protection authority on Wednesday lost a legal battle with Facebook Inc in which it sought to stop the social network from tracking the online activities of non-Facebook users in Belgium who visit the social network’s pages. The Belgian Privacy Commission said the Brussels Appeals Court had dismissed its case on the grounds that the regulator has no jurisdiction over Facebook, which has its European headquarters in Ireland. The US company has staunchly maintained that only the Irish Data Protection Commissioner has jurisdiction over how it uses Europeans’ data.
Intel, Mobileye join forces
Intel Corp is working with Mobileye NV to develop self-driving car technology for BMW AG, people familiar with the matter said. Senior executives from each company are to hold an event today to discuss the driverless-vehicle initiative, said the people, who asked not to be named because the details are private. Jerusalem-based Mobileye has been an early leader in providing cameras, software and other components that allow vehicles to see the world around them.
CIBC to buy PrivateBancorp
The Canadian Imperial Bank of Commerce (CIBC) on Wednesday made a US$3.8 billion offer to buy Chicago-based investment bank PrivateBancorp as it looks to expand in the US. CIBC expects to pay US$1.5 billion in cash and issue 29.5 million shares to finance the acquisition, it said in a statement. PrivateBancorp operates in 12 US states and manages assets totaling US$17.7 billion. The takeover bid is expected to be finalized early next year.
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
Shin Kong Financial Holding Co (新光金控) yesterday said that its insurance unit would adjust its investment portfolio after being banned from buying new stocks a day earlier by the Financial Supervisory Commission (FSC). “We will research what we can do based on the commission’s specific instructions after we receive the regulator’s formal documents,” Shin Kong Financial spokesman Sunny Hsu (徐順鋆) told the Taipei Times by telephone. The commission on Tuesday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$941,722) for reckless investment, and demanded that the insurer reduce its overseas investment ratio from 43 percent to 39 percent. The fine would affect
Taipei Times: When do you think the hospitality industry can return to how it was before the COVID-19 pandemic? How does Formosa International Hotels Group (FIH, 晶華酒店集團) fare this quarter and beyond? FIH chairman Steve Pan (潘思亮): The virus outbreak will have a serious impact on business travel, driven mainly by meetings, incentive travel, conferences and exhibitions over the past three decades. For the past six months, many businesspeople have grown used to exchanging information on the Internet, where more people can participate. The trend might sustain for three to five years until people are vaccinated and it is safe to
EQUITIES TAIEX moves sharply higher The TAIEX moved sharply higher yesterday as buying focused on Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) after a strong showing by its American Depositary Receipts overnight. However, the gains were capped after the benchmark index breached 13,000 points and ran into technical hurdles, prompting investors to turn cautious, dealers said. At the end of the session, the TAIEX was up 131.11 points, or 1.02 percent, at 12,976.76. Turnover was NT$206.328 billion (US$7.04 billion), with foreign institutional investors buying a net NT$18.47 billion in shares, Taiwan Stock Exchange data showed. TSMC rose 2.92 percent to close at NT$458.