Factory prices up
The price of goods at the factory gate last month rose in China for the first time in more than four years, officials said yesterday. The producer price index (PPI) rose 0.1 percent year-on-year in the month, the National Bureau of Statistics said, adding that it “ended 54 consecutive months of year-on-year falls.” The PPI rise “should ease any lingering concerns about deflation,” Julian Evan-Pritchard, an analyst with research firm Capital Economics, said in a research note. Bureau analyst Yu Qiumei (余秋梅) attributed the PPI increase to strengthening international commodity prices and Beijing’s efforts to address industrial overcapacity.
HP to cut up to 4,000 jobs
HP Inc on Thursday said it will cut 3,000 to 4,000 jobs over the next three years as it faces continued challenges in the markets for personal computers and printers. The cuts are in addition to 3,000 jobs that HP previously said it was trimming this fiscal year. A spokeswoman said the company has about 50,000 employees worldwide. The company is one of two companies formed last year by the break-up of the old Hewlett-Packard Inc. The other, Hewlett Packard Enterprise Co, primarily sells servers and other data-center technology.
UniCredit raises 552m euros
UniCredit SpA on Thursday said it had raised more than half a billion euros as part of its latest asset sale, part of Italy’s largest bank’s effort to boost its funds without raising capital from shareholders. The 552 million euros (US$609 million) from the sale of 20 percent of its online banking subsidiary, Fineco, is to be used to boost Unicredit’s core capital — the amount of funds available to absorb losses — which has recently fallen perilously close to European banking limits. Unicredit, Italy’s largest bank by assets, said the funds should add 0.12 percentage points to core tier 1 ratio, which had fallen to 10.3 percent in June.
Yahoo hack to impact deal
Verizon Communications Inc’s top lawyer said it has reason to believe Yahoo’s recently disclosed data breach has a “material” impact on Verizon’s pending US$4.8 billion acquisition of Yahoo. That leaves open the possibility that Verizon could seek a change in the price or other terms. Verizon general counsel Craig Silliman made the comments to reporters during a roundtable discussion on Thursday. Silliman did not say whether Verizon will seek a price reduction, but added that Yahoo will have to convince Verizon if it does not believe the breach of at least 500 million users’ e-mail accounts had a significant impact on its business.
Region to weather Fed hike
Asia is poised to withstand higher US interest rates with risks of capital outflows and weaker currencies exaggerated, according to the Asian Development Bank. “Asia is in a pretty good shape to weather this looming US rate hike,”ADB principal economist Donghyun Park said in Manila on Thursday. “Emerging markets especially in Asia have relatively robust, strong economic and structural fundamentals. I’m quite optimistic that the effect will be subdued and muted. The risks are quite exaggerated, overstated.” The more vulnerable emerging markets are outside Asia, including Brazil, Russia and Turkey, Park said.
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, is to issue NT$13.9 billion (US$469.5 million) in unsecured bonds to help fund its plan to expand production capacity, it said on Friday. In a Taiwan Stock Exchange filing, TSMC said the bonds would comprise three tranches: NT$5.7 billion payable over five years, NT$6.3 billion over seven years and NT$1.9 billion over 10 years. The interest rates would be 0.58 percent on the five-year bonds, 0.65 percent on the seven-year ones and 0.67 percent on the 10-year tranche, TSMC said. Capital Securities Corp (群益金鼎證券) is to serve as the main underwriter in