Deutsche not wary of Brexit
Deutsche Bank AG’s asset management arm purchased two office buildings from M&G Real Estate for ￡310 million (US$395 million) in a bet that Brexit would not hurt the market in the long run. The properties, built in 2007, have 38,500m2 of office space on nine floors and are located behind the Tate Modern art museum in London’s Southbank district, Deutsche Bank said yesterday in a statement. “Despite Brexit, London is and remains one of the most attractive locations for real-estate investments in Europe,” Ulrich Steinmetz, who runs real-estate funds for Deutsche Bank, said in the statement.
Wage hike after VW strike
Unions at Volkswagen Slovakia (VW) on Sunday said they were ending a six-day strike after agreeing to a 14.1 percent wage hike with management at the eurozone nation’s largest private employer. “We are ending our strike,” union chief Zoroslav Smolinsky told journalists after marathon negotiations with Bratislava plant bosses. VW spokeswoman Lucia Kovarovic Makayova said that the agreed 14.1 percent pay rise would be made in three installments and completed by November next year. Workers are to also get a one-off bonus of 500 euros (US$559) and an extra day off, she added. The average salary in the Bratislava VW plant is 1,800 euros, excluding managers’ pay packets, the company said. Slovakia’s average salary is 980 euros. Workers launched the strike on Tuesday last week after management rejected union demands for a 16 percent wage hike, offering an 8 percent rise instead. Smolinsky said that up to 10,000 of the plant’s 12,300 employees downed tools for the first time since production began at the site in 1992.
Credit Suisse disputes fees
Credit Suisse Group AG, which helped arrange part of the US$2 billion in Mozambique state-backed loans that plunged the nation into crisis, disputed that it received more than US$100 million in fees for arranging the financing. The bank was responding to Kroll LLC’s audit report into the debts that said it and Russia’s VTB Bank PJSC were paid US$200 million in arrangement and contractor fees. The investigation showed that Mozambican state companies failed to account for about a quarter of the proceeds of US$2 billion in loans being investigated, the Kroll report said. “The reporting that Credit Suisse realized US$100 million or more in ‘arranging’ fees is incorrect and misleading,” a spokesman for the lender said on Sunday in an e-mailed statement. “Banking fees for Credit Suisse totaled US$23 million –- roughly 2.3 percent of the total financings — and is in line with comparable emerging-market financing transactions,” the statement said.
Sibanye to restart mine
South African precious metals producer Sibanye Gold aims to resume production at its strike-hit Cooke Mine later this week, but planned to first conduct safety inspections in the shafts yesterday. It also needed to wrap up an appeals process for about 1,500 miners who face possible dismissal for taking part in a violent wildcat strike that started nearly three weeks ago in protest against a company drive to root out illegal miners, a company spokesman said. Illegal gold mining has plagued South Africa for decades, with bullion pilfered from both disused and operating mines, and Sibanye has said it will clear all illegal miners from its shafts by January next year.
‘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