Toshiba sets price for unit
Toshiba Corp is looking to raise at least ￥1 trillion (US$8.8 billion) from the sale of its memorychip business and will aim to complete the transaction by March next year, according to a person familiar with the matter. The deal will likely result in Toshiba relinquishing majority control over the unit, which could be valued as high as ￥2 trillion, the person told Bloomberg, asking not to be identified as the matter is private. A Toshiba spokesman declined to comment.
Yen forecast to slump
The yen will slump to ￥120 per US dollar in six months as the US Federal Reserve raises US interest rates, but that is about as weak as it will get, former IMF economist Stephen Jen said in an interview with Bloomberg last week. The currency will rebound to ￥100 by early next year as the Bank of Japan’s (BOJ) policies of controlling yields and adding stimulus through bond purchases reach a limit, said Jen, chief executive officer at hedge fund Eurizon SLJ Capital Ltd in London. “The BOJ is closer to the limits of their unconventional monetary policy than any other central bank,” Jen said. Once all its options are exhausted, the yen will return to its fair value of about ￥90 per dollar, he said.
Economic activity picks up
Euroarea economic activity this month unexpectedly rose to the highest level in almost six years as the region’s recovery became more broad-based and inflationary pressures continued to intensify. A composite purchasing managers’ index climbed to 56.0 from 54.4 last month, putting the region on track for quarterly growth of 0.6 percent, IHS Markit said yesterday. Economists had predicted the gauge would slip to 54.3. Inflows of new orders and surging optimism among firms point to a potentially stronger expansion in the coming months, the London-based company said.
China plans new asset rules
China’s financial regulators are working together to draft sweeping new rules for the country’s rapidly expanding asset-management products that aim to make it clear there is no government guarantees on such investments, according to people familiar with the matter. The draft rules would apply to products issued by banks, insurers, brokerages and other financial institutions, said the people, who asked not to be identified. New rules will be phased in after existing products mature, and would only apply to new issues, they added.
Anglo’s profits doubles
Anglo American PLC, the world’s biggest producer of diamonds and platinum, said profit more than doubled last year as commodity prices soared, meaning it no longer needs to sell assets to reduce debt. Underlying earnings were US$1.72 a share in the that year on ended Dec. 31, compared with US$0.64 in 2015, Anglo said in a statement. That compares with an average analyst estimate of US$1.39 a share. Net debt was reduced to US$8.5 billion, well below its target of US$10 billion. Bigger profits and a stock price that tripled last year show Anglo’s turnaround program, unveiled during the depths of the commodities crisis, has worked.
Uber picks Holder for probe
Uber Technologies Inc has appointed former US attorney general Eric Holder to lead an independent review into claims of sexual harassment by a former software engineer.
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
‘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
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