CHINA
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.
CANADA
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.
MAURITIUS
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.
RETAIL
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.
FINANCE
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.
AVOIDING CONFUSION: Passengers are to be able to check in two items of luggage, while the free weight allowance is to be increased to conform with other airlines EVA Airways Corp (長榮航空) yesterday announced that from June 23 it is to adopt a new baggage allowance policy for all passengers with a higher weight limit as it aims to benefit passengers and increase efficiency. The airline currently has a two-system baggage policy: It allows passengers flying to the US and Canada to check in two pieces of baggage with a free weight allowance, while for those flying to Asia, Europe and Oceania there is also a free weight allowance, but no limit on the number of pieces of baggage. From June 23, passengers would be able to check in two
MORE THAN BUZZ: The chip designer said it has received numerous orders from automakers to supply 5G modem chips, as it works to expand beyond smartphones MediaTek Inc (聯發科) yesterday said it would ship the first 5G chips for vehicles to customers in the Asia-Pacific region by the end of the year, as it moves to expand the reach of its 5G chips beyond smartphones. The Hsinchu-based chip designer said it has been developing 5G chips for connected vehicles over the past few years, targeting applications such as telematics and in-vehicle information systems. “We are seeing demand for 5G technology from numerous makers of connected cars, including electric vehicle makers. We have obtained numerous orders from automakers to supply 5G modem chips with highly integrated features,” J.C. Hsu
INVENTORY DOUBLED: Key parts have backed up in warehouses, halting notebook production, as Acer’s CEO said that a gradual reopening would not solve the problem PC vendor Acer Inc (宏碁) yesterday said that lockdowns in China to control COVID-19 upended key component supply and disrupted PC production, although chip shortages have been improving. While chip supply constraints largely eased in the first quarter, the company faces uneven supplies of key components due to COVID-19 restrictions in China, Acer chairman and CEO Jason Chen (陳俊聖) told an online news conference. “Semiconductor shortage was the biggest problem in the first half of last year,” Chen said. “Now, we are beset by a supply chain issue caused by China's lockdowns.” With key components unable to be delivered and backing up in
Qualcomm Inc yesterday said it would maintain its supply chain strategy of sourcing chips from multiple foundry partners, including advanced chips from two major suppliers, to ensure a sufficient chip supply amid the COVID-19 pandemic. Qualcomm is reportedly working with Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co on advanced products, such as 4-nanometer chips, for its new flagship 5G chips, the Snapdragon 8+ Gen 1 series. Qualcomm is sourcing chips made by mature technologies from several foundry partners, the company said. Alex Katouzian, general manager of Qualcomm Technologies Inc’s mobile, compute and XR business, told a virtual media briefing that
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