GERMANY
GDP edged up 0.4% in Q4
The German economy expanded 0.4 percent in the final quarter of last year, official data showed yesterday, confirming that Europe’s powerhouse grew 1.9 percent over the whole year. The growth rate in the October-to-December period — adjusted for price, seasonal and calendar effects — followed 0.7 percent in the first quarter of last year, 0.5 percent in the second and 0.1 percent in the third, the federal statistics office Destatis said. “Compared with the previous quarter, positive impulses came from domestic activity,” it said. Germany’s traditionally powerful exports contributed less to growth in the fourth quarter, as imports increased faster, Destatis added.
TRADE
China polls US trade impact
China’s foreign-exchange regulator began surveying firms in Shanghai early this month about the impact on cross-border trade of possible protectionist measures by the US, two sources said yesterday. The State Administration of Foreign Exchange is asking firms with large trading operations and cross-border payments with the US whether they have US production facilities, their tolerance for higher tariffs and how they would deal with the higher tariffs, one of the sources said. “It is still in the survey phase. Every foreign trade firm’s situation is different. If there really was a trade war, there will be pressure,” the source said.
CHINA
Producer price index rises
Prices for goods at the factory gate expanded for a fifth consecutive month, the government said yesterday. The producer price index last month rose 6.9 percent year-on-year, the National Bureau of Statistics said, outstripping estimates of a 6.5 percent increase in a Bloomberg News survey. An increase in global crude prices had boosted prices in oil and natural gas exploitation, which contributed to the expansion, the bureau said in a statement. The consumer price index, a key gauge of retail inflation, rose 2.5 percent year-on-year in the month, the data showed, beating a Bloomberg analysis that forecast a 2.4 percent increase.
PHARMACEUTICALS
Allergan acquires Zeltiq
Drug giant Allergan PLC on Monday announced the US$2.5 billion acquisition of Zeltiq Aesthetics Inc, makers of a fast-growing technology to eliminate body fat through “CoolSculpting,” which essentially freezes unwanted fat away. The patented cooling technology permits patients to experience “body contouring” without surgery. The venture represents a “US$4 billion market opportunity worldwide and growing,” said Allergan, which is headquartered in Ireland. The transaction must be approved by Zeltiq shareholders and is subject to regulatory review.
BANKING
Credit Suisse loss narrows
Credit Suisse AG said it more than halved its fourth quarter last year loss, amid a “challenging” market and internal restructuring, and before a multibillion-dollar settlement with US regulators. The Zurich-based bank set aside about US$2 billion in the quarter to help pay for what became a US$5.3 billion settlement with the US Department of Justice, finalized last month, over claims the bank misled investors about the quality of mortgage-backed securities that it sold before the 2008 financial crisis. The bank yesterday said its fourth-quarter loss narrowed to 2.35 billion Swiss francs (US$2.34 billion), down from SF5.83 billion a year earlier. For the whole of last year, the net loss dropped to SF2.45 billion from SF2.94 billion in 2015.
purpose: Tesla’s CEO sought to meet senior Chinese officials to discuss the rollout of its ‘full self-driving’ software in China and approval to transfer data they had collected Tesla Inc CEO Elon Musk arrived in Beijing yesterday on an unannounced visit, where he is expected to meet senior officials to discuss the rollout of "full self-driving" (FSD) software and permission to transfer data overseas, according to a person with knowledge of the matter. Chinese state media reported that he met Premier Li Qiang (李強) in Beijing, during which Li told Musk that Tesla's development in China could be regarded as a successful example of US-China economic and trade cooperation. Musk confirmed his meeting with the premier yesterday with a post on social media platform X. "Honored to meet with Premier Li
Dutch brewing company Heineken NV on Friday announced an investment of NT$13.5 billion (US$414.62 million) over the next five years in Taiwan. The first multinational brewing company to operate in Taiwan, Heineken made the statement at a ceremony held at its brewery in Pingtung County. It also outlined its efforts to make the brewery “net zero” by 2030. Heineken has been in the Taiwanese market for 20 years, Heineken Taiwan managing director Jeff Wu (吳建甫) said. With strong support from local consumers, the Dutch brewery decided to transition from sales to manufacturing in the country, Wu said. Heineken assumed majority ownership and management rights
ARTIFICIAL INTELLIGENCE: The chipmaker last month raised its capital spending by 28 percent for this year to NT$32 billion from a previous estimate of NT$25 billion Contract chipmaker Powerchip Semiconductor Manufacturing Corp (力積電子) yesterday launched a new 12-inch fab, tapping into advanced chip-on-wafer-on-substrate (CoWoS) packaging technology to support rising demand for artificial intelligence (AI) devices. Powerchip is to offer interposers, one of three parts in CoWoS packaging technology, with shipments scheduled for the second half of this year, Powerchip chairman Frank Huang (黃崇仁) told reporters on the sidelines of a fab inauguration ceremony in the Tongluo Science Park (銅鑼科學園區) in Miaoli County yesterday. “We are working with customers to supply CoWoS-related business, utilizing part of this new fab’s capacity,” Huang said, adding that Powerchip intended to bridge
Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI