Incentives to be raised
The government yesterday said that it would expand tax incentives for companies that use the country as a base for conducting their regional or global business. Effective this year, companies eligible for the government’s Principal Hub incentive would be subjected to a 10 percent tax rate for their operations instead of the wider corporate tax rate of 24 percent.
Household spending up 1%
Households in August increased spending for a ninth month without splurging ahead of a sales tax hike that took effect this month, suggesting the boom-and-bust consumption pattern that accompanied previous tax increases might not materialize this time. Household spending rose 1 percent from a year earlier, Ministry of Internal Affairs and Communications data showed yesterday, matching the median forecast of economists. Separate figures showed that wages fell for a seventh month this year, offering little hope that higher pay might fuel consumption over the coming months.
Two firms drop e-cigarettes
Walgreens Boots Alliance Inc and Kroger Co are to stop selling electronic cigarettes, making them the latest retailers to take action in the wake of the outbreak of vaping-related lung injuries in the US. “We have made the decision to stop selling e-cigarette products at our stores nationwide,” a Walgreens spokesman said on Monday. The drugstore chain, which operates thousands of locations around the country, would still sell regular cigarettes. Kroger said earlier that it too would halt the sale of all electronic nicotine-delivery products, citing mounting health questions.
Cellnex buying Arqiva towers
Cellnex Telecom SA is buying Arqiva’s UK telecommunication towers for ￡2 billion (US$2.5 billion) and selling new shares to help the fast-growing Spanish infrastructure company pursue more deals. Cellnex would acquire 7,400 mobile towers that privately held Arqiva is carving out from its broadcasting mast business. The deal includes commercial rights over a further 900 tower sites, and concessions to use London street infrastructure as locations for mobile equipment, Cellnex said in a statement.
Shiseido agrees to buy firm
Shiseido Co agreed to buy skincare brand Drunk Elephant Holdings LLC for US$845 million as the Japanese beauty company seeks to appeal to younger consumers in the US. The deal for Drunk Elephant would not have a significant effect on full-year earnings, Shiseido said in a statement yesterday. It would be financed with a combination of cash and credit, and is expected to close by the end of the year, it said.
B&O fires chief executive
Bang & Olufsen A/S (B&O) replaced its chief executive officer as the Danish maker of luxury audio systems grew impatient with the slow pace of the company’s turnaround. B&O named Kristian Tear, 55, as its new chief executive officer with immediate effect. He replaces Henrik Clausen, who would be “at the company’s disposal in the short term,” according to a statement. The company earlier this month reported a second consecutive quarterly loss, missing analyst estimates, as sales declined 30 percent.
Just a few years ago, the millennial generation — generally defined as those born from the early 1980s through the mid-1990s — was synonymous with youthful rebellion. However, now, as the millennials ease into early middle age, they are finding their path out of their parents’ basement to be a lot harder than it was for earlier generations. The fundamental problem is that millennials are not building wealth. The wealth of the median US household headed by someone 35 or younger has actually shrunk in inflation-adjusted terms since the mid-2000s, even as the wealth of older Americans has continued to grow. An
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