TRADE
Japan, US conclude talks
Japan and the US have finished talks on a trade deal with no indication on how the two sides have responded to US President Donald Trump’s threat to slap tariffs on the US$50 billion in vehicles and parts shipped by Japan to the US annually. Japanese Minister of Foreign Affairs Toshimitsu Motegi on Monday told reporters in New York that a ceremony would be held this week and that he would explain more about auto tariffs at that time.
AUTOMAKERS
NIO to cut staff amid losses
NIO Inc (蔚來汽車) reported a net loss of 3.29 billion yuan (US$463.03 million) in the three months through June, marking another loss for the electric vehicle maker, which said that it would cut its global staff by more than 20 percent to cope with adverse market conditions. Shanghai-based NIO, known as China’s Tesla Inc, said in a statement that revenue fell 7.5 percent from the previous quarter, while vehicle sales dropped 7.9 percent.
INTERNET
Google launches Play Pass
Alphabet Inc’s Google on Monday said that it is rolling out Google Play Pass, a subscription service that gives Android users access to more than 350 apps and games without ads and in-app purchases. Priced at US$4.99 per month, the service is similar to Apple Inc’s Apple Arcade, the iPhone maker’s gaming subscription service for mobile devices and desktop computers. Google Play Pass would be available on Android devices in the US this week and is to be rolled out to additional countries soon, the company said.
PAPERMAKERS
Sun Paper receives permit
Arkansas environmental officials have approved an air permit for a Chinese company’s US$1.8 billion paper mill, which has been delayed by Trump’s trade dispute with China. The Arkansas Department of Environmental Quality on Monday approved the permit for Sun Paper Group’s (太陽紙業集團) mill in Arkadelphia and set emissions limits for the facility. The plant is to produce liner board for cardboard boxes. Design engineering can now begin, but a construction date has not been set, Sun Paper consultant Ray Dillon said.
AUTOMAKERS
Honda to phase out diesel
Honda Motor Co on Monday said that it would phase out its diesel vehicles by 2021 in favor of models with electric propulsion systems as the Japanese automaker moves to electrify all of its European cars by 2025. The plan is part of a long-term goal to make electric vehicles, including battery-powered vehicles, account for two-thirds of its lineups by 2030, from less than 10 percent now. By next year, according to EU targets, carbon dioxide emissions must be cut to 95g per kilometer for 95 percent of cars, from the current 120.5g average.
BONDS
Eurozone yields remain low
The eurozone’s bond yields yesterday held near Monday’s week-and-a-half lows after a German sentiment survey failed to ease concern about rising recession risks. German business sentiment improved this month as companies took a better view of current conditions, but their expectations deteriorated as Europe’s largest economy teetered on the brink of recession, the Ifo Institute for Economic Research sentiment survey showed. A slight improvement in the Ifo business climate index does not suggest a change of trend, the institute said.
BUSINESS UPDATE: The iPhone assembler said operations outlook is expected to show quarter-on-quarter and year-on-year growth for the second quarter Hon Hai Precision Industry Co (鴻海精密) yesterday reported strong growth in sales last month, potentially raising expectations for iPhone sales while artificial intelligence (AI)-related business booms. The company, which assembles the majority of Apple Inc’s smartphones, reported a 19.03 percent rise in monthly sales to NT$510.9 billion (US$15.78 billion), from NT$429.22 billion in the same period last year. On a monthly basis, sales rose 14.16 percent, it said. The company in a statement said that last month’s revenue was a record-breaking April performance. Hon Hai, known also as Foxconn Technology Group (富士康科技集團), assembles most iPhones, but the company is diversifying its business to
ARTIFICIAL INTELLIGENCE: The chipmaker last month raised its capital spending by 28 percent for this year to NT$32 billion from a previous estimate of NT$25 billion Contract chipmaker Powerchip Semiconductor Manufacturing Corp (力積電子) yesterday launched a new 12-inch fab, tapping into advanced chip-on-wafer-on-substrate (CoWoS) packaging technology to support rising demand for artificial intelligence (AI) devices. Powerchip is to offer interposers, one of three parts in CoWoS packaging technology, with shipments scheduled for the second half of this year, Powerchip chairman Frank Huang (黃崇仁) told reporters on the sidelines of a fab inauguration ceremony in the Tongluo Science Park (銅鑼科學園區) in Miaoli County yesterday. “We are working with customers to supply CoWoS-related business, utilizing part of this new fab’s capacity,” Huang said, adding that Powerchip intended to bridge
Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI
Qualcomm Inc, the world’s biggest seller of smartphone processors, gave an upbeat forecast for sales and profit in the current period, suggesting demand for handsets is increasing after a two-year slump. Revenue in the three months ended in June will be US$8.8 billion to US$9.6 billion, the company said in a statement Wednesday. Excluding certain items, earnings will be US$2.15 to US$2.35 a share. Analysts had projected sales of US$9.08 billion and earnings of US$2.16 a share. The outlook signals that the smartphone market has begun to bounce back, tracking with Qualcomm’s forecast that demand would gradually recover this year. The San