UNITED STATES
Data point to Harvey shock
Retail sales unexpectedly fell last month as Hurricane Harvey disrupted activity, suggesting the storm could dent economic growth in the third quarter. The US Department of Commerce said retail sales dropped 0.2 percent last month from the previous month, the biggest decline in six months, as motor vehicle sales tumbled 1.6 percent. Sales of building materials, electronics and appliances as well as clothing also fell. Overall retail sales increased 3.2 percent on a year-on-year basis. In a separate report on Friday, the US Federal Reserve said industrial production declined 0.9 percent last month in the biggest drop since May 2009, following six straight monthly gains.
RUSSIA
Central bank cuts rate again
The Central Bank of the Russian Federation on Friday cut its key interest rate to 8.5 percent, the fourth reduction this year, as inflation hit a record low. The bank said it took the decision to slice 50 points off the rate after “inflation expectations resumed their decline.” In a statement, the bank said it would “continue to conduct a moderately tight monetary policy” in order to maintain inflation close to 4 percent. However, it also said that “during the next two quarters, the Bank of Russia deems it possible to cut the key rate further.” GDP is expected to grow by 1.7 percent to 2.2 percent after two years of recession, it said.
CHINA
Mortgages drive credit growth
Chinese bank loans rebounded last month to hit 1.09 trillion yuan (US$166 billion), beating analysts’ expectations as demand was buoyed by home buyers. The figure was up from 825.5 billion yuan in July, the People’s Bank of China said. It exceeded forecasts from analysts surveyed by Bloomberg, although it remains far below the 1.54 trillion yuan loaned by banks in in June. However, the broad M2 measure of money supply rose 8.9 percent from a year earlier, down from 9.2 percent recorded a month ago.
GREECE
Quick review of loans urged
Greece wants the next review of its European loan program to wrap up by the end of the year to pave the way for additional money to be disbursed next year, a senior member of Greek Prime Minister Alexis Tsipras’ government said. Greek Minister of Digital Policy, Telecommunications and Media Nikos Pappas, an economist who is considered a close adviser to Tsipras, said the Greek economy is rebounding, with output set to expand 2 percent this year and unemployment falling. “We hope to conclude before the end of the year. There is absolutely no reason to have any delays,” Pappas said on Friday. “If there are delays, it is not going to be because of Greece.”
ACCOUNTANCY
KPMG S Africa head quits
KPMG LLP on Friday said the head of its South African office and seven other senior executives quit, after an internal investigation found that work done for the politically connected Gupta family fell “considerably short” of the auditing firm’s standards. It is to give the equivalent of US$3 million, the fees it made from its work with the family since 2002, to education and anti-corruption charities. KPMG South Africa chief executive officer Trevor Hoole, chairman Ahmed Jaffer and chief operating officer Steven Louw were among those to have resigned, KPMG said.
SETBACK: Apple’s India iPhone push has been disrupted after Foxconn recalled hundreds of Chinese engineers, amid Beijing’s attempts to curb tech transfers Apple Inc assembly partner Hon Hai Precision Industry Co (鴻海精密), also known internationally as Foxconn Technology Group (富士康科技集團), has recalled about 300 Chinese engineers from a factory in India, the latest setback for the iPhone maker’s push to rapidly expand in the country. The extraction of Chinese workers from the factory of Yuzhan Technology (India) Private Ltd, a Hon Hai component unit, in southern Tamil Nadu state, is the second such move in a few months. The company has started flying in Taiwanese engineers to replace staff leaving, people familiar with the matter said, asking not to be named, as the
The prices of gasoline and diesel at domestic fuel stations are to rise NT$0.1 and NT$0.4 per liter this week respectively, after international crude oil prices rose last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) announced yesterday. Effective today, gasoline prices at CPC and Formosa stations are to rise to NT$27.3, NT$28.8 and NT$30.8 per liter for 92, 95 and 98-octane unleaded gasoline respectively, the companies said in separate statements. The price of premium diesel is to rise to NT$26.2 per liter at CPC stations and NT$26 at Formosa pumps, they said. The announcements came after international crude oil prices
SinoPac Financial Holdings Co (永豐金控) is weighing whether to add a life insurance business to its portfolio, but would tread cautiously after completing three acquisitions in quick succession, president Stanley Chu (朱士廷) said yesterday. “We are carefully considering whether life insurance should play a role in SinoPac’s business map,” Chu told reporters ahead of an earnings conference. “Our priority is to ensure the success of the deals we have already made, even though we are tracking some possible targets.” Local media have reported that Mercuries Life Insurance Co (三商美邦人壽), which is seeking buyers amid financial strains, has invited three financial
CAUTION: Right now, artificial intelligence runs on faith, not productivity and eventually, the risk of a bubble will emerge,’ TIER economist Gordon Sun said Taiwanese manufacturers turned more optimistic last month, ending a five-month streak of declining sentiment as concerns over US tariffs, currency volatility and China’s overcapacity began to ease, the Taiwan Institute of Economic Research (TIER) said yesterday. The manufacturing business confidence index rose 1.17 points from June to 86.8, its first rebound since February. TIER economist Gordon Sun (孫明德) attributed the uptick to fading trade uncertainties, a steadier New Taiwan dollar and reduced competitive pressure from Chinese producers. Taiwan’s semiconductor industry is unlikely to face significant damage from Washington’s ongoing probe into semiconductors, given the US’ reliance on Taiwanese chips to power artificial