BANKING
Commonwealth CEO retiring
Commonwealth Bank of Australia CEO Ian Narev is to retire by the end of the 2018 financial year as the nation’s largest lender seeks to mitigate fallout from a money-laundering scandal. Chairman Catherine Livingstone said in a statement the board was detailing its succession plan to “provide certainty for the business.” The exact timing of Narev’s departure will depend on the search for a successor, with the board looking at both internal and external candidates. Pressure is building on Commonwealth Bank amid allegations by the nation’s financial crimes agency that drug syndicates used its network of deposit machines to launder cash, despite warnings from police.
ENTERTAINMENT
Rovio eyes September IPO
Rovio Entertainment Oy is planning an initial public offering (IPO) as early as next month that could value the maker of the Angry Birds mobile games and movie at about US$2 billion, people familiar with the matter said. Rovio could raise about US$400 million from a local market listing, the people said. No final decisions have been made and the company could also choose to stay private for longer, they said. Rovio, based in Espoo, Finland, reported revenue growth of 34 percent for last year to 190.3 million euros (US$225 million) and earnings before interests and taxes of about 17.5 million euros compared with a loss in the previous year.
LOGISTICS
DX, Menzies drop plan
British mail delivery firm DX Group yesterday said talks for a potential merger with John Menzies PLC’s distribution unit had been terminated due to unsuitable terms. The company was preparing to buy Menzies’ distribution arm in a deal aimed at bolstering DX after a profit warning in February that cited a challenging courier market and margin pressure in its freight business. DX last month said it would split its business into DX Express and DX Freight, and the reorganization would give it greater flexibility in managing costs. DX is one of several big operators in the crowded parcels market, where DHL-owner Deutsche Post has bulked up by buying UK Mail, and Amazon has started its own deliveries.
GAMES
Nexon shares post new high
Shares of Nexon Co, the Tokyo-based maker of PC and mobile games, climbed to a record high after software updates to older games pushed its earnings above forecasts. Operating income in the June quarter rose 22 percent from a year ago to ¥16.3 billion (US$149 million), topping its projection for as much as ¥14 billion. Net income more than doubled to ¥19.4 billion, aided by a ¥6.3 billion gain from a weakening Korean won. The stock jumped as much as 12 percent to ¥2,480.
LUXURY GOODS
Euro’s rise a risk to sales
The euro’s strong run since the start of the year may dent a recovery in the European luxury industry, which has been led by a rebound in Chinese consumer spending, analysts at RBC Capital Markets and HSBC Holdings PLC said. The euro has gained about 12 percent versus the US dollar this year, a shift that brings uncertainty over tourist flows to Europe in coming quarters, the analysts said. The BI Europe Luxury Goods Top Peers Index has climbed about 40 percent in the past 12 months, paring multiyear declines as China’s crackdown on corruption hurt demand for high-end items. LVMH, Hermes International, Kering SA and other firms reported a rebound in luxury sales this year as Asian shoppers returned.
ISSUES: Gogoro has been struggling with ballooning losses and was recently embroiled in alleged subsidy fraud, using Chinese-made components instead of locally made parts Gogoro Inc (睿能創意), the nation’s biggest electric scooter maker, yesterday said that its chairman and CEO Horace Luke (陸學森) has resigned amid chronic losses and probes into the company’s alleged involvement in subsidy fraud. The board of directors nominated Reuntex Group (潤泰集團) general counsel Tamon Tseng (曾夢達) as the company’s new chairman, Gogoro said in a statement. Ruentex is Gogoro’s biggest stakeholder. Gogoro Taiwan general manager Henry Chiang (姜家煒) is to serve as acting CEO during the interim period, the statement said. Luke’s departure came as a bombshell yesterday. As a company founder, he has played a key role in pushing for the
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
CROSS-STRAIT TENSIONS: The US company could switch orders from TSMC to alternative suppliers, but that would lower chip quality, CEO Jensen Huang said Nvidia Corp CEO Jensen Huang (黃仁勳), whose products have become the hottest commodity in the technology world, on Wednesday said that the scramble for a limited amount of supply has frustrated some customers and raised tensions. “The demand on it is so great, and everyone wants to be first and everyone wants to be most,” he told the audience at a Goldman Sachs Group Inc technology conference in San Francisco. “We probably have more emotional customers today. Deservedly so. It’s tense. We’re trying to do the best we can.” Huang’s company is experiencing strong demand for its latest generation of chips, called
GLOBAL ECONOMY: Policymakers have a choice of a small 25 basis-point cut or a bold cut of 50 basis points, which would help the labor market, but might reignite inflation The US Federal Reserve is gearing up to announce its first interest rate cut in more than four years on Wednesday, with policymakers expected to debate how big a move to make less than two months before the US presidential election. Senior officials at the US central bank including Fed Chairman Jerome Powell have in recent weeks indicated that a rate cut is coming this month, as inflation eases toward the bank’s long-term target of two percent, and the labor market continues to cool. The Fed, which has a dual mandate from the US Congress to act independently to ensure