MACROECONOMICS
National debt levels rising
Global debt levels jumped in the first quarter of this year, outpacing the world economy and closing in on last year’s record, the Institute of International Finance said. Debt rose by US$3 trillion in the period to US$246.5 trillion, almost 320 percent of global economic output, the institute said in a report published yesterday. That is the second-highest dollar number on record after the first three months of last year, though debt was higher in 2016 and 2017 as a share of world GDP. New borrowing by the US government and by global non-financial business led the increase.
AVIATION
Ryanair cuts forecast
Europe’s largest budget airline, Ryanair Holdings PLC, has cut its forecast for passenger numbers next summer, blaming possible further delays in deliveries of Boeing Co 737 MAX planes. The Irish company on Monday said the move would also impact jobs, as it would close or make cuts at the some of its bases for this winter and next summer’s schedules. The airline now expects to carry 3 percent more passengers next summer, down from its previous forecast of 7 percent. That reduces its traffic estimate for the year to March 2021 to about 157 million from 162 million. Ryanair said it would start discussions with airports to determine which of its underperforming or loss-making bases would be cut or closed from November.
MANUFACTURING
IKEA to close US factory
IKEA said it would close its only US factory at the end of the year, cutting 300 jobs, as it would be more cost-effective to make the products in Europe and import them. It said raw material costs were too high compared to plants in Europe, meaning prices at the plant in Danville, Virginia, were “significantly higher.” The factory, which opened in 2008 to produce wood shelves and storage units for the US and Canadian markets, is to close in December.
FASHION
Burberry Q1 sales up 4%
British luxury brand Burberry Group PLC yesterday reported a pick-up in first-quarter sales after it began shifting more new designs by creative chief Riccardo Tisci into its stores as part of a turnaround plan. New products accounted for around half the wares on offer in its shops by the end of last month, it said. This helped lift same store sales by 4 percent — following growth of 1 percent in the previous three months and topping market expectations of about 2 percent.
TECHNOLOGY
Symantec-Broadcom deal off
Symantec Corp and Broadcom Inc have halted their discussions for a proposed merger as they could not agree on a price, according to people familiar with the matter. Discussions hit an impasse over the weekend after Broadcom sought to reduce its offer by more than US$1.50 per share after determining in due diligence that it was no longer willing to meet their agreed-upon price of US$28.25, the people said. The talks could be resumed if both parties are able to compromise on price or if Symantec comes under sufficient pressure to re-engage, the people said.
TELECOMS
France starts 5G process
France’s telecoms regulator Arcep on Monday officially launched the process to allocate to operators frequencies for next-generation 5G mobile telephone networks. Arcep said it would offer the initial batch of frequencies at a fixed price and then hold an auction for the rest.
Taiwan Transport and Storage Corp (TTS, 台灣通運倉儲) yesterday unveiled its first electric tractor unit — manufactured by Volvo Trucks — in a ceremony in Taipei, and said the unit would soon be used to transport cement produced by Taiwan Cement Corp (TCC, 台灣水泥). Both TTS and TCC belong to TCC International Holdings Ltd (台泥國際集團). With the electric tractor unit, the Taipei-based cement firm would become the first in Taiwan to use electric vehicles to transport construction materials. TTS chairman Koo Kung-yi (辜公怡), Volvo Trucks vice president of sales and marketing Johan Selven, TCC president Roman Cheng (程耀輝) and Taikoo Motors Group
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
RECORD-BREAKING: TSMC’s net profit last quarter beat market expectations by expanding 8.9% and it was the best first-quarter profit in the chipmaker’s history Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which counts Nvidia Corp as a key customer, yesterday said that artificial intelligence (AI) server chip revenue is set to more than double this year from last year amid rising demand. The chipmaker expects the growth momentum to continue in the next five years with an annual compound growth rate of 50 percent, TSMC chief executive officer C.C. Wei (魏哲家) told investors yesterday. By 2028, AI chips’ contribution to revenue would climb to about 20 percent from a percentage in the low teens, Wei said. “Almost all the AI innovators are working with TSMC to address the
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”