Banker hints at rate cut
The economist tipped to be Mexican president-elect Andres Manuel Lopez Obrador’s first central bank board nominee said that he expects the key interest rate to be cut next year, given the outlook for slowing inflation and growth. “Next year we’re likely to be in a period where the economy is going to decelerate, and, at the same time, we will have inflation going down,” Jonathan Heath, a former chief economist at HSBC Holdings PLC in Mexico, said on Friday. “I believe that in the appropriate moment next year they will begin to reduce rates, though perhaps cautiously.”
Cambodia hikes wages
Cambodia on Friday hiked the monthly minimum wage for garment workers by US$12 from US$170, fulfilling an election promise by Cambodian Prime Minister Hun Sen. The country’s US$7 billion apparel industry is fueled by more than 740,000 garment workers, who Hun Sen attempted to woo before July’s widely criticized elections. Union representatives said that the hike is not enough to address rising inflation and living expenses.
Mattress Firm goes bankrupt
Mattress Firm Inc, the US’ largest mattress retailer, on Friday filed for bankruptcy protection, saying that its rapid expansion of stores over the past few years — with locations often very close to each other — has resulted in “cannibalization” of sales. The Houston-based company filed for bankruptcy protection under Chapter 11 of the US Bankruptcy Code in federal court in Delaware, saying that it plans to close up to 700 stores around countrywide as part of its reorganization plan to continue operating.
Worker broke privacy rules
Amazon.com Inc said that it fired an employee who disclosed customer e-mail addresses to a third-party merchant on the Web site in violation of the e-commerce giant’s policies. “The individual responsible for this incident has been terminated from their position,” an Amazon spokesman said in a statement. Amazon alerted the shoppers, although the company said no change of password was needed. The company did not disclose how many customers were affected.
UPS union rejects contract
United Parcel Service Inc’s (UPS) union on Friday voted down a five-year labor contract. Opponents of the main contract balked at a US$13-per-hour starting wage for part-timers, US$2 short of what some workers demanded. They were also unhappy with the creation of a new hybrid class of weekend drivers that are to load packages and earn less than current parcel drivers.
GIC acquires Masan stake
GIC Pte, Singapore’s sovereign wealth fund, has purchased a stake in Vietnamese conglomerate Masan Group Corp, people with knowledge of the matter said. The state investment firm bought about half of KKR & Co’s 4.7 percent stake in Masan, said the people, who asked not to be identified because the information is private. It purchased the stock as part of a placement by KKR, which offloaded its entire holding in a US$209 million deal, the people said.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to