Nissan head stays in custody
Nissan Motor Co chairman Carlos Ghosn is to be held in custody for another 10 days, Japanese media reported. Ghosn was arrested earlier this week on suspicion of falsifying income reports by millions of US dollars and misusing company assets for personal gain. Kyodo News yesterday reported that another Nissan executive, Greg Kelly, would also be detained for another 10 days.
Sell-off ‘not surprising’
Tighter monetary conditions worldwide and political discord mean Morgan Stanley CEO James Gorman is not surprised there is an ongoing market sell-off. “It’s not surprising the markets have been anxious; it’s not surprising you’re seeing some correction,” Gorman said in an interview on Tuesday. “It’s not 2008, it’s not the dot-com bubble burst of 2000.” There are limitations to what monetary authorities can do given their shrinking balance sheets and there is a lot of political turmoil, he said.
Thyssenkrupp profits tumble
German industrial conglomerate Thyssenkrupp AG yesterday reported a sharp fall in annual profits after months of boardroom turmoil and a cartel probe, as it prepares to tackle a massive restructuring. The group reported net profit of 60 million euros (US$68.43 million) for its 2017-2018 financial year to September, down 78 percent after taking into account the sell-off of its Americas steel business. Sales rose 3 percent to 42.7 billion euros.
Shopee drags Sea’s profits
Sea Ltd, operator of Southeast Asia’s biggest gaming platform, reported a wider third-quarter loss on rising investments at e-commerce unit Shopee. Net losses increased to US$218 million in the three months ending on Sept. 30 from US$132.8 million during the period a year earlier, the company said. Total revenue rose to US$204.9 million from US$94.1 million year-on-year. Sea has been struggling to keep its footing since going public in October last year.
Tokopedia raising US$1bn
PT Tokopedia, Indonesia’s largest online marketplace, is raising US$1 billion from existing investors, people familiar with the matter said. The firm is valued at about US$7 billion after the round, the people said. That would make it the most valuable start-up in Indonesia, CB Insights said. While it was not clear if the backing comes from SoftBank Group Corp or its Vision Fund, the Tokyo-based company transferred prior holdings in Tokopedia to the fund earlier this year.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Continental AG, which makes control units for Daimler AG cars, cannot pursue antitrust claims against a group of patent owners, including Qualcomm Inc, which are seeking royalties on telecommunications technology, a federal judge in Texas ruled. Avanci LLC, a licensing pool formed by Qualcomm, Nokia Oyj, Sharp Corp and other owners of patents on technology standards, is not breaching antitrust laws when it negotiates license agreements with automakers rather than the component makers, Barbara Lynn, chief district judge for the Northern District of Texas, said in dismissing the suit in a decision posted on Friday. The licensing group charges US$15 per vehicle
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s