Fujian Jinhua plans appeal
Fujian Jinhua Integrated Circuit Co (晉華集成電路), a Chinese chipmaker accused of stealing US trade secrets, plans to appeal a US block on technology exports that has frozen its business. The state-owned memorychip maker was charged in November last year along with Taiwanese partner United Microelectronics Corp (聯電) of conspiring to steal intellectual property from Micron Technology Inc. Both companies have since denied the allegations. Jinhua yesterday challenged US authorities to produce proof of the allegations.
Tax increase mooted
Senator Elizabeth Warren is proposing a so-called ultra-millionaire tax as she vies for the 2020 Democratic presidential nomination. According to two economists advising her presidential campaign on the plan, the tax would hit an estimated 75,000 of the wealthiest US households. The new tax plan released on Thursday by the Massachusetts Democrat would impose a new 2 percent fee annually on US households’ net worth greater than US$50 million. The overall new tax bill would rise to 3 percent for households on their net worth above US$1 billion under her plan.
Mnuchin touts trade progress
Secretary of the Treasury Steven Mnuchin on Thursday said he thought that Washington and Beijing were “making a lot of progress” in trade talks, with currency issues also on the agenda. Mnuchin was not specific on the areas where he saw progress. “Currency has always been part of the discussions, it’s on a list, it’s one of the important issues, we’ve talked about it all the time, so it’ll continue to be on it,” Mnuchin said.
GDP shows large drop
The economy experienced its worst shrinkage during the tenure of President Mauricio Macri, as GDP dropped 7.5 percent in November last year compared with the same period in 2017, the state statistics bureau said on Thursday. It was the fourth month in a row that the economy dwindled following falls last year of 4.2 percent in October and 6.1 percent in September. For the period last year from January to November, the economy shrank 2.2 percent annually. The worst-hit sectors were commerce, industrial manufacturing and construction.
Malayan closing researcher
Malayan Banking Bhd, Malaysia’s biggest lender, is closing its Hong Kong and China institutional equity research business to focus on Southeast Asian operations, according to people with knowledge of the matter. Kim Eng, the investment banking arm of Maybank, has cut seven to eight Hong Kong-based research positions, the people said. The changes were announced internally on Thursday, the people said. New European regulations requiring securities firms to separate research fees from trading commissions have shaken up the industry globally.
Starbucks slump ends
Starbucks Corp has put its recent sales slump behind it, beating analysts’ estimates in the key Americas and Asia-Pacific regions in the first quarter. Comparable sales rose 4 percent in the Americas. Same-store sales in China, where Starbucks has about 3,700 stores and is opening a new one roughly every 15 hours, gained 1 percent, marking the second straight quarter of growth after a rare decline last spring.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range
ROW: A probe would determine if the rights of shareholders who were not allowed to vote yesterday had been violated, while the stock exchange also wants answers The election of board directors yesterday at Tatung Co (大同) sparked controversy after the company blocked some institutional and individual shareholders from participating in the general shareholders’ meeting, prompting the Financial Supervisory Commission (FSC) to announce that the vote would be investigated. Lin Kuo Wen-yen (林郭文艷) was re-elected as chairwoman of the household-appliance maker’s nine-member board, but prior to the vote she announced that several shareholders would not have voting rights. They were being denied a vote because they had contravened the Business Mergers and Acquisitions Act (企業併購法), and the Act Governing Relations Between the People of the Taiwan Area and