Deutsche loses 3.1bn euros
Deutsche Bank AG said it lost 3.1 billion euros (US$3.45 billion) in the second quarter as it booked heavy charges for its sweeping restructuring that is to drop 18,000 jobs. The bank in a news release yesterday said that without the charges it would have made net profit of 231 million euros and that a “substantial portion” of the deductions to earnings for the restructuring were now behind it. The charges included revaluing deferred tax matters, a lowered outlook for its business plans, and losses on software and service contracts.
Alibaba to allow US firms
China’s e-commerce juggernaut Alibaba Group Holding Ltd (阿里巴巴) is to allow small and medium-sized US businesses to sell on Alibaba.com. US businesses, until Tuesday, were only able to buy merchandise on the platform. Sellers would have to pay an annual registration fee of about US$2,000, but it would not charge commission for each sale, unlike Amazon.com, said John Caplan, president of North America B2B and globalization at Alibaba Group.
Jollibee to buy Coffee Bean
Jollibee Foods Corp is to spend US$350 million to purchase loss-making Coffee Bean & Tea Leaf, the largest acquisition for the Philippines’ biggest restaurant company. Jollibee is to invest US$100 million for an 80 percent stake in a Singapore venture set up with Vietnamese partners to acquire Coffee Bean. The rest of the amount would be in the form of advances. Los Angeles-based Coffee Bean would add 14 percent to Jollibee’s global sales and expand its store network by more than one-quarter, Jollibee chairman Tony Tan Caktiong said.
Aston Martin shares decline
Aston Martin Lagonda Ltd shares fell the most since listing after reducing its full-year sales forecast because of intensifying weakness in key markets. The luxury sports-car manufacturer now expects wholesale deliveries to decline as much as 14 percent to as low as 6,300, the Gaydon, England-based company said yesterday. That compares with a plan for 7,100 to 7,300 vehicle sales the automaker anticipated in May.
Brussels threatens tariffs
The European Union is ready to hit the US with extra tariffs on goods worth 35 billion euros if Washington slaps duties on its vehicles, European Commissioner for Trade Cecilia Malmstrom said on Tuesday. The warning came as Malmstrom said a plan to reach a limited trade deal with the US was at a standstill. Malmstrom’s stark statement to newly elected members of the European Parliament in Brussels was a reminder that transatlantic tensions remained high, despite Washington’s trade spat with China dominating attention.
Texas Instruments optimistic
Texas Instruments Inc on Tuesday gave stronger-than-predicted sales and profit forecasts for this quarter, indicating that demand for chips might be starting to improve. Third-quarter earnings would be US$1.31 a share to US$1.53 a share on revenue of US$3.65 billion to US$3.95 billion, the Dallas-based company said. A better-than-feared outlook from Texas Instruments signals that a slump in orders for electronic components might end soon and helps counter concern that the China-US trade dispute will hurt the overall economy.
PRESSURE FROM THE US: Huawei said a decision by the US was ‘arbitrary and pernicious, and threatens to undermine the entire [technology] industry worldwide’ Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has stopped new orders from Huawei Technologies Co (華為) in response to Washington’s move aimed at further limiting chip supplies to the Chinese company, the Nikkei reported yesterday, citing multiple sources. The orders that TSMC took before the new ban and those that were already in production are not affected, and could continue to proceed if those chips could be shipped before the middle of September, the report said. TSMC, the world’s biggest contract chipmaker and a key Huawei supplier, on Thursday last week announced plans to build a US-based plant and on Friday added that
MediaTek Inc (聯發科), which designs chips used in mobile phones, yesterday launched its new 5G Dimensity 820 system-on-chip (SoC), targeting mid-range to high-end smartphones. The company expects the penetration of 5G technology to gain pace quickly this year and not be affected too much by the COVID-19 pandemic. MediaTek said it aims to expand its 5G chip portfolio this year to cover phones of varying prices after it shipped its first 5G SoC, the Dimensity 1000, last quarter. The Dimensity 820, made by Taiwan Semiconductor Manufacturing Co (台積電) on 7-nanometer technology, is designed for mid-range to high-end 5G phones. MediaTek expects to infiltrate the
TV and online retailer Momo.com Inc (富邦媒體) yesterday said it has set up a new logistics subsidiary, Fu Sheng Logistics Co (富昇物流), to oversee the company’s extensive shipping operations. Leveraging Momo’s 23 satellite warehouses and distribution centers nationwide, Fu Sheng will be in charge of executing the retailer’s same-day shipment plan for deliveries in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung, Momo said in a press release. Seeking to further shorten its supply chain, the company is to set up another seven satellite warehouses and distribution centers by the end of the year. “Fu Sheng has a fleet of 200 couriers
US-CHINA TENSIONS: The company said that it supplies self-designed chips to the Chinese company and, as such, is not affected by the latest US export restrictions Macronix International Co (旺宏電子) said it does not expect its shipments of memory chips to Huawei Technologies Co (華為) to be affected by the latest US export restrictions on the Chinese tech giant. “As long as the company [Huawei] places orders, we will ship [chips], unless the [Taiwanese] government restricts all Taiwanese companies from shipping” to Huawei, Macronix chairman and chief executive officer Miin Wu (吳敏求) said on Monday in Hsinchu. The US Department of Commerce on Friday took a further step to block chip supplies from non-US companies to Huawei by requiring foreign semiconductor makers to get US government permission before