EUROZONE
Economic growth picks up
The economy this month grew at its fastest pace in six years on the back of strong demand and “widespread optimism” about the outlook, a closely watched survey showed yesterday. Data monitoring company IHS Markit said this month’s composite purchasing managers index (PMI) came in at 56.7 points, the highest reading since April 2011 and up from 56.4 points last month. The PMI measures companies’ willingness to invest in their business and so gives a good idea of how well the underlying economy is performing. IHS Markit said the 19-nation eurozone economy was doing well on all fronts.
UNITED KINGDOM
Retail sales plummet
Retail sales recorded their largest decline in seven years in the first quarter of this year as consumers felt the pinch from accelerating inflation. The volume of goods sold in stores and online fell 1.4 percent from the previous three months, the most since early 2010, the Office for National Statistics said yesterday. Last month alone, sales dropped 1.8 percent, far exceeding the 0.5 percent decline forecast by economists. The drop over the quarter knocks 0.08 percentage points off growth, the office said. Compared with a year earlier sales growth slowed from 3.7 percent to 1.7 percent.
FINANCE
Deal reached over 1MDB
Malaysia and Abu Dhabi have reached agreement on a partial debt settlement for embattled government fund 1Malaysia Development Bhd (1MDB), the Straits Times reported, citing financial executives it did not identify. Under a deal that could be signed as soon yesterday, Malaysia would pay Abu Dhabi US$1.2 billion before the end of this year and negotiate on a further US$3.5 billion, the Singapore-based paper said. A proposed settlement is being handled by the 1MDB board and management, and the Malaysian prime minister’s department, Malaysian Deputy Minister of Finance Johari Abdul Ghani said in a text message without elaborating.
ELECTRONICS
Sony profit beats forecast
Sony Corp yesterday reported preliminary operating profit of ¥285 billion (US$2.6 billion) for the fiscal year through last month, 19 percent higher than its previous forecast, according to a statement. The company also said net income would be about ¥73 billion, more than twice the previous forecast. That marks the second straight year operating profit has topped US$2 billion, the longest such streak since 2001. The company cited strong performance across most businesses and cost-savings in its insurance unit. Its chips division also saw lower expenses after a faster-than-expected recovery from last year’s earthquake in western Japan.
ENERGY
Chevron loses tax battle
Energy giant Chevron Corp yesterday lost its appeal in major battle against a A$269 million (US$203 million) tax bill in a case that could have global implications for multinationals looking to cut their obligations. The Australian Federal Court ruled in favor of a 2015 decision by the same court that the US giant had minimized its payments through a loan scheme and ordered it to foot costs, estimated by local media at more than A$10 million. The ruling followed an announcement by Canberra this month that seven multinationals were facing a total of A$2.9 billion in bills after assessing their tax arrangements.
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has appointed Rose Castanares, executive vice president of TSMC Arizona, as president of the subsidiary, which is responsible for carrying out massive investments by the Taiwanese tech giant in the US state, the company said in a statement yesterday. Castanares will succeed Brian Harrison as president of the Arizona subsidiary on Oct. 1 after the incumbent president steps down from the position with a transfer to the Arizona CEO office to serve as an advisor to TSMC Arizona’s chairman, the statement said. According to TSMC, Harrison is scheduled to retire on Dec. 31. Castanares joined TSMC in
EUROPE ON HOLD: Among a flurry of announcements, Intel said it would postpone new factories in Germany and Poland, but remains committed to its US expansion Intel Corp chief executive officer Pat Gelsinger has landed Amazon.com Inc’s Amazon Web Services (AWS) as a customer for the company’s manufacturing business, potentially bringing work to new plants under construction in the US and boosting his efforts to turn around the embattled chipmaker. Intel and AWS are to coinvest in a custom semiconductor for artificial intelligence computing — what is known as a fabric chip — in a “multiyear, multibillion-dollar framework,” Intel said in a statement on Monday. The work would rely on Intel’s 18A process, an advanced chipmaking technology. Intel shares rose more than 8 percent in late trading after the
FACTORY SHIFT: While Taiwan produces most of the world’s AI servers, firms are under pressure to move manufacturing amid geopolitical tensions Lenovo Group Ltd (聯想) started building artificial intelligence (AI) servers in India’s south, the latest boon for the rapidly growing country’s push to become a high-tech powerhouse. The company yesterday said it has started making the large, powerful computers in Pondicherry, southeastern India, moving beyond products such as laptops and smartphones. The Chinese company would also build out its facilities in the Bangalore region, including a research lab with a focus on AI. Lenovo’s plans mark another win for Indian Prime Minister Narendra Modi, who tries to attract more technology investment into the country. While India’s tense relationship with China has suffered setbacks