Goldman’s Schwartz retiring
Goldman Sachs is losing an architect of its Asia-Pacific division at the same time it confronts slowing activity in the region and a probe over its dealings in Malaysia. Mark Schwartz, 62, has decided to retire from his post as chairman of Goldman Sachs Asia Pacific, a memo on Monday from chief executive Lloyd Blankfein and president Gary Cohn said. Beijing-based Schwartz, a 27-year Goldman veteran, is to leave his post at the end of the year. He will serve as a senior director at Goldman following his departure from China. Schwartz played an “instrumental role” in building Goldman’s business in Asia, as chairman of the Asia-Pacific unit in Tokyo in the late 1990s and reprising the role again in 2012 from Beijing, the memo said.
Kenya Air suspends strike
Kenya Airways jumped 6.5 percent in early trading yesterday, after pilots suspended a planned strike following talks between the union, airline and government. The pilots’ union KALPA had called for an indefinite strike to demand management changes at the loss-making airline, which is partly owned by the government and Air France-KLM. The union, airline executives and government held talks on Monday to avert action that officials said would hurt the carrier’s slow recovery. A new chairman was named after the talks, meeting part of the pilots’ demands.
Disney drops Twitter bid
Walt Disney Co decided not to pursue a bid for Twitter Inc partly out of concern that bullying and other uncivil forms of communication on the social media site might soil the company’s wholesome family image, people familiar with management’s thinking said. The producer of family fare like Finding Dory had gone so far as to hire two investment banks, JPMorgan Chase & Co and Guggenheim Partners LLC, to help evaluate a bid for Twitter. Disney management also listened to a presentation about the business from Twitter executives, according to the people, who asked not to be identified because the discussions were private.
Ladbrokes Q3 revenue up
British bookmaker Ladbrokes yesterday reported a 12.1 percent rise in third-quarter net revenue, helped by a bookmaker-friendly and busy summer of sport. The company, which agreed an all-share merger with Gala Coral to create a ￡2.3 billion (US$3.4 billion) betting group, said net revenue for UK Retail rose 1.9 percent in the quarter ended Sept. 30, while European Retail net revenue rose 11.3 percent. Ladbrokes’ digital business revenue jumped 48.2 percent in the quarter. The company said its performance in the quarter was “supportive” of its full-year expectations.
STX bundled sale likely
A South Korean court handling the bankruptcy case of STX Offshore and Shipbuilding Co, yesterday said that it could announce the bundled sale of the company with its profitable French shipyard unit later this week. STX France, which specializes in building cruise ships, is the only profitable unit of STX Offshore, which filed for receivership in May. Originally it was assumed that the French unit would be sold off separately, but the bankruptcy court signaled its preference for selling the two companies as a package. “The court is seeking to sell STX Offshore together with STX France as one bundle,” said Choi Ung-young, a judge who acts as a spokesman for the Seoul Central District Insolvency Court.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to