Factory price inflation spikes
Factory price inflation, a key barometer of the industrial sector, last month accelerated sharply, reflecting strong demand and a reduction in excess capacity that has plagued the nation’s economy. The producer price index, which measures costs for goods at the factory gate, rose 6.3 percent year-on-year, much faster than expected and compared with the 5.5 percent registered in July, the National Bureau of Statistics reported yesterday. The consumer price index, a main gauge of retail inflation, rose 1.8 percent year-on-year, stronger than the 1.4 percent posted a month earlier, but still well below the government’s target of 3 percent.
Unemployment extends fall
Statistics Canada on Friday released figures that showed the labor market is in its longest run of employment gains since the 2008-2009 recession, with signs also emerging that sluggish wages are also on the rise and companies are quickly running out of capacity. The country last month added 22,200 jobs, the ninth straight monthly gain, versus market expectations for a gain of 15,000, while annual average hourly wage gains hit 1.8 percent, the highest since October last year, agency data showed. The jobless rate fell to 6.2 percent last month, the lowest since 2008, the data showed.
Export sectors to get support
The government is to provide foreign currency support to sugar and other export-oriented sectors to cushion them against the impact of a strong Mauritian rupee, the Ministry of Finance and Economic Development said on Friday. Businesses have over the past few weeks been calling on policymakers to intervene after export revenues fell 8 percent to 20.5 billion rupees (US$623.4 million) year-on-year in the first six months of the year. Prime Minister Pravind Kumar Jugnauth on Friday told business executives that the government would introduce an exchange rate support scheme, a statement from the ministry said. The rupee is up 9 percent against the US dollar so far this year and down 5 percent against the euro.
Target shares fall over sales
Target Corp said it is discounting thousands of products throughout its stores, sending its stock down and dragging most of the retail sector with it. The Minneapolis, Minnesota-based retailer, which is spending billions to remodel stores and strengthen its online business, on Friday said that it would continue “to offer additional savings on the right products at the right times.” Target reported its online sales last quarter jumped 32 percent and revenue beat Wall Street expectations. However, shares in Target closed down 2 percent after the company’s announcement.
Agran quits Goldman Sachs
Goldman Sachs Group Inc commodities trading cohead Greg Agran is leaving the bank after 26 years, according to an internal memo on Friday. Jeremy Taylor and Ed Emerson are to continue to serve as coheads of commodities trading, the memo said. Goldman in July posted the weakest commodities results in its history as a public company. In its second-quarter earnings, Goldman reported a 40 percent slump in fixed income trading, driven in large part by poor performance in its commodities group.
From India to China to the US, automakers cannot make vehicles — not that no one wants any, but because a more than US$450 billion industry for semiconductors got blindsided. How did both sides end up here? Over the past two weeks, automakers across the world have bemoaned the shortage of chips. Germany’s Audi, owned by Volkswagen AG, would delay making some of its high-end vehicles because of what chief executive officer Markus Duesmann called a “massive” shortfall in an interview with the Financial Times. The firm has furloughed more than 10,000 workers and reined in production. That is a further blow
MOBILE SMART: The Dimensity 1200 is 22 percent better in terms of performance than its predecessor, and 25 percent more power-efficient, the handset chip designer said MediaTek Inc (聯發科) yesterday unveiled its premium 5G processors — the Dimensity 1200 and Dimensity 1100 — as it vies for a larger slice of the world’s rapidly growing 5G smartphone market. Manufactured using Taiwan Semiconductor Manufacturing Co’s (台積電) 6-nanometer process technology, the Dimensity 1200 processor performs 22 percent better than the previous generation Dimensity 1000+ processor, and is 25 percent more power-efficient, MediaTek said. Chinese smartphone brands Xiaomi Corp (小米) and Realme Mobile Telecommunications (Shenzhen) Co (銳爾覓移動通信) are to be the first adopters of the latest Dimensity chips, the companies said during a virtual media briefing. Xiaomi plans to equip its first
Answering to a reported request by Germany to help address a chip shortage in its auto industry, the Ministry of Economic Affairs (MOEA) yesterday said that it was in talks with domestic chip suppliers. Foreign media over the weekend reported that German Minister of Economic Affairs Peter Altmaier had sent a request to Taipei to ask Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to cooperate more closely with German automakers to provide microchips and sensors, to bridge a shortage that has emerged over the past few months. The MOEA said that it had not yet received the request and could therefore not elaborate
FOCUS ON FOUNDRIES: An analyst said that some investors would be disappointed because they were expecting a larger announcement of a partnership with TSMC Intel Corp’s incoming chief executive officer Pat Gelsinger on Thursday pledged to regain the company’s lead in chip manufacturing, countering growing calls from some investors to shed that part of its business. “I am confident that the majority of our 2023 products will be manufactured internally,” Gelsinger said. “At the same time, given the breadth of our portfolio, it’s likely that we will expand our use of external foundries for certain technologies and products.” He plans to provide more details after officially taking over the CEO role on Feb. 15, but Gelsinger was clear that Intel is sticking with its once mighty