ANZ to cut overseas jobs
Australia & New Zealand Banking Group (ANZ) Ltd, Australia’s third-biggest bank by market value, is cutting about 30 jobs in its institutional banking unit. The affected positions are based in New York, London and Asia, and are mostly in customer relationship roles, ANZ Bank spokesman Stephen Ries said in an e-mailed statement. Australia’s most Asia-focused lender is in the process of restructuring its operations and shrinking its Asian businesses. The bank last month said it had reduced its Singapore headcount by about 300 from a year earlier, but remained committed to having an institutional banking presence across 14 Asian countries..
Ericsson announces losses
Swedish mobile networks company Ericsson AB yesterday said that “negative industry trends have further accelerated,” contributing to a third-quarter loss for the company of 233 million kronor (US$26.2 million). The loss compared with a net profit of 3.08 billion kronor during the same three-month period last year. The group said revenue dropped 14 percent from 59.2 billion kronor to 51.1 billion kronor amid fierce Asian competition and a slowing telecommunications equipment market. It added that the industry trends indicate to “a somewhat weaker than normal seasonal sales growth between the third and fourth quarters.”
Daimler profits soar
German automaker Daimler AG yesterday said that stronger sales of its technology-loaded Mercedes-Benz E-Class sedan and sports utility vehicles helped third-quarter earnings swell by 13 percent. Net profit during the July to September period rose from 2.42 billion to 2.73 billion euros (US$2.63 billion to US$2.97 billion) in the same quarter a year earlier. The increase came on a revenue rise of 4 percent to 38.6 billion euros, the company said. Favorable exchange rate developments boosted earnings, in addition to stronger sales. The company would use its momentum to move forward with its electric vehicles.
New buyers boost real estate
Home resales surged last month after two straight months of declines as first-time buyers stepped into the market, pointing to underlying momentum in the economy. The National Association of Realtors said existing home sales rose 3.2 percent to an annual rate of 5.47 million units. That was well above economists’ expectations for an increase to a 5.35 million-unit pace. First-time buyers accounted for 34 percent of transactions last month, the largest share since July 2012. Still, the share remains well below the 40 percent to 45 percent that economists say is required for a robust housing market.
Sales optimism growing
Consumer confidence has rebounded since the Brexit vote, despite the impending squeeze on household budgets from rising prices, a PricewaterhouseCoopers (PwC) survey found. A gauge of expectations for the next 12 months returned to positive territory last month as more consumers predicted they wouldd be better off than worse off, PwC said yesterday. Londoners and young people were the most upbeat, the survey of 2,050 consumers found. The report suggest consumers would continue to support an economy facing an uncertain year as Britain prepares for negotiations to leave the EU and the weak pound stokes inflation.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
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
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s