Provinces to pay carbon tax
The government will impose a carbon price on provinces that do not adequately regulate emissions by themselves, Minister of the Environment Catherine McKenna said on Sunday without giving details on how the government will do so. McKenna said the new emissions regime would be in place sometime next month, before a federal-provincial meeting on the matter. She only said the government would have a “backstop” for provinces that do not comply, but did not address questions on penalties for defiance. The provinces, which enjoy significant jurisdiction over the environment, have been wary of Ottawa’s intentions and have said they should be allowed to cut carbon emissions their own way.
Rolls-Royce to cut top jobs
Rolls-Royce Holdings PLC is eliminating more than 200 positions from its management team as chief executive officer Warren East extends a wide-reaching restructuring of the embattled enginemaker. The additional cuts brings the total trimming of management positions under East’s reign to more than 600, a Rolls-Royce spokesman said in a statement on Sunday in response to a Financial Times report outlining the plans. About 270 of those positions had been phased out as of July 28, East said at the company’s half-year earnings report. Rolls-Royce has been struggling amid a downturn in demand for marine engines and servicing revenues from its business jet turbines. The company targets savings of between ￡30 million and ￡50 million (US$39 million and US$65 million) this year as part of a broader restructuring effort aimed at cutting spending by ￡200 million by the end of next year.
Glitch suspends trading
Trading in Australian stocks was suspended for a second time yesterday after starting more than an hour late because of a technical glitch, with investors unable to buy and sell shares as they braced for US and Japan central bank meetings this week. ASX Ltd said it was working to fix the problem. The stock-exchange operator delayed the normal 10am equity market opening until 11:30am due to an issue relating to a component that allows it to manage individual stocks, Matthew Gibbs, a spokesman for the ASX in Sydney said earlier, adding that the company was working with its technology vendor NASDAQ Inc to prevent a recurrence. Australia’s equity market is worth US$1.1 trillion, the sixth-largest in the region.
ECB urged to act on rates
The European Central Bank (ECB) must not allow low interest rates and monetary stimulus to last indefinitely, the head of Germany’s Bundesbank said yesterday. “Under no circumstances can interest rates remain so low for longer than is absolutely necessary with regard to price stability,” Bundesbank president Jens Weidmann told a group of European newspapers including the Sueddeutsche Zeitung. “The risks of ultra-loose monetary policy become larger the longer the phase of low interest rates lasts,” he said. The ECB’s headline main refinancing rate has stood at zero since early this year, while its deposit rate is in negative territory — meaning banks pay to park their money in its coffers. Combined with the central bank’s offers of cheap loans to banks and “quantitative easing” policy of buying state and corporate debt, low rates are supposed to drive down the cost of borrowing for businesses and households, which should stimulate growth in the economy.
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
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
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
‘ONE-STOCK SHOW’: Turnover hit an all-time high as TSMC continued to determine the local market’s direction and surpassed Visa in market capitalization The TAIEX early yesterday hit an all-time intraday high on the back of soaring Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares, before tumbling back to the previous day’s close as the contract chipmaker could not single-handedly prop up the index. The TAIEX rose more than 400 points in the first 20 minutes of trading to hit a record 13,031.7 points, but later pared its gains to close down 0.01 percent at 12,586.73. Turnover was NT$343.252 billion (US$11.63 billion), the highest in the Taiwan Stock Exchange’s history. TSMC continued to dictate the market’s direction, as its early surge by the daily