MACROECONOMICS
US expands at ‘modest’ pace
The US economy expanded at a “modest” pace from July to late last month while some slowing was recorded in two regions, the US Federal Reserve’s Beige Book survey said on Wednesday. Comments from business contacts, economists and others across the country indicate that they expect the economy to grow at a “moderate” pace in the coming months; they also said that wage pressures have been “moderate” and price increases “slight,” according to the survey.
MACROECONOMICS
Japan economy flatlines
Japan’s economy barely grew in the April-to-June quarter, revised data showed yesterday. Growth in the world’s third-largest economy came in at 0.2 percent quarter-on-quarter, slightly better than a 0 percent preliminary estimate last month. On an annualized basis, the economy expanded a revised 0.7 percent, compared with a slight 0.2 percent expansion in the preliminary data. That is still off a 2.1 percent annualized growth rate seen in the first quarter.
UNITED KINGDOm
‘Brexit’ bounce back spreads
The bounce back in the economy from the initial shock of the “Brexit” vote has expanded to the country’s recruitment and housing markets, according to two surveys which had previously painted a bleak outlook. The Recruitment and Employment Confederation said firms increased permanent staff for the first time in three months, and were also spending more on temporary workers. The Royal Institution of Chartered Surveyors said its monthly house price index jumped to “+12” last month from July’s three-year low of “+5,” the first rise in six months.
FINACE
UBS to axe jobs on ‘Brexit’
Britain’s decision to leave the EU could see UBS slash nearly a third of its employees from the London office, the head of the Swiss banking giant said in an interview to a Japanese publication. “We currently employ more than 5000 people in London and probably 20 percent to 30 percent of our workforce could be affected,” Sergio Ermotti was quoted as saying by the Nikkei Asian Review on Wednesday. UBS confirmed the Ermotti’s statements but declined to comment.
AUTOMAKERS
China sales rise again
China’s passenger-vehicle sales climbed for a sixth consecutive month as consumers rushed to buy ahead of a tax cut due to expire at year-end and General Motors Co and Great Wall Motor Co emerged from stiff pricing competition with rising deliveries. Retail sales of cars, sport utility and multipurpose vehicles increased 24.5 percent to 1.8 million units last month, the China Passenger Car Association said yesterday. Deliveries climbed 13 percent to 14.2 million units through the first eight months of this year.
AIRLINES
Delta, Korean mend fences
Delta Air Lines Inc and Korean Air Lines Co are taking steps to mend a chilly relationship, announcing an expansion of their partnership where each airline can sell tickets on some of each other’s flights. Delta will also launch a new non-stop flight from its hometown of Atlanta to Seoul Incheon International Airport in June. The two carriers were founding members of the SkyTeam alliance in 2000. However, that relationship started to fray after Delta reportedly pushed for — and Korean rejected — a joint venture agreement across the Pacific Ocean.
Taiwan Transport and Storage Corp (TTS, 台灣通運倉儲) yesterday unveiled its first electric tractor unit — manufactured by Volvo Trucks — in a ceremony in Taipei, and said the unit would soon be used to transport cement produced by Taiwan Cement Corp (TCC, 台灣水泥). Both TTS and TCC belong to TCC International Holdings Ltd (台泥國際集團). With the electric tractor unit, the Taipei-based cement firm would become the first in Taiwan to use electric vehicles to transport construction materials. TTS chairman Koo Kung-yi (辜公怡), Volvo Trucks vice president of sales and marketing Johan Selven, TCC president Roman Cheng (程耀輝) and Taikoo Motors Group
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
RECORD-BREAKING: TSMC’s net profit last quarter beat market expectations by expanding 8.9% and it was the best first-quarter profit in the chipmaker’s history Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which counts Nvidia Corp as a key customer, yesterday said that artificial intelligence (AI) server chip revenue is set to more than double this year from last year amid rising demand. The chipmaker expects the growth momentum to continue in the next five years with an annual compound growth rate of 50 percent, TSMC chief executive officer C.C. Wei (魏哲家) told investors yesterday. By 2028, AI chips’ contribution to revenue would climb to about 20 percent from a percentage in the low teens, Wei said. “Almost all the AI innovators are working with TSMC to address the
FUTURE PLANS: Although the electric vehicle market is getting more competitive, Hon Hai would stick to its goal of seizing a 5 percent share globally, Young Liu said Hon Hai Precision Industry Co (鴻海精密), a major iPhone assembler and supplier of artificial intelligence (AI) servers powered by Nvidia Corp’s chips, yesterday said it has introduced a rotating chief executive structure as part of the company’s efforts to cultivate future leaders and to enhance corporate governance. The 50-year-old contract electronics maker reported sizable revenue of NT$6.16 trillion (US$189.67 billion) last year. Hon Hai, also known as Foxconn Technology Group (富士康科技集團), has been under the control of one man almost since its inception. A rotating CEO system is a rarity among Taiwanese businesses. Hon Hai has given leaders of the company’s six