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.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
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