ASML profit beats forecast
Semiconductor equipment maker ASML Holding NV yesterday reported higher-than-expected quarterly profit of 627 million euros (US$691.64 million) and bookings, driven by solid demand for 5G telecom network and artificial intelligence applications. Analysts polled by Refinitiv had forecast that third-quarter net income of ASML, one of the world’s largest equipment suppliers to computer chipmakers, to come in at 609 million euros. The company posted sales of 3 billion euros and forecast that its fourth-quarter sales would come in at 3.8 billion euros.
Roche remains upbeat
Roche Holding AG for the third time this year said sales and profit might be better than expected as its push outside cancer pays off. Sales and core earnings per share would rise by a percentage in the high-single digits this year, the Basel, Switzerland-based drugmaker said in a statement. It previously expected growth in the mid to high-single-digits. The planned acquisition of Spark Therapeutics Inc is still expected to close by the end of this year, it said.
European vehicle sales jump
European vehicle sales rose sharply last month, but the jump had more to do with the year-ago comparison than any respite from longer-term woes in the industry. Registrations increased by 14 percent to 1.29 million vehicles, the European Automobile Manufacturers Association said yesterday. Sales suffered in the year-ago period after new emissions test rules took effect. Demand for vehicles on the continent has declined 1.6 percent this year through last month to 12.1 million vehicles.
Country eyes private capital
Central bank Governor Roberto Campos Neto has told the Financial Times that the country wants to “democratize” the financial sector and usher in more private capital. “We need to reinvent ourselves with private money,” he said in an interview published yesterday, adding that public spending was not a solution to the difficulties faced by the country. Commenting on global growth, he said it was not going favorably and that people were showing signs of risk aversion.
Regulators have advised some local lenders against offering lira liquidity in the offshore money market, according to three people with knowledge of the matter, in an apparent attempt to stand in the way of short-selling of the currency. The advice came from the banking watchdog BDDK, but was not an official directive, the people said. Earlier, the stock exchange “temporarily prohibited” short-selling in seven banks, including Turkiye Halk Bankasi AS, against which the US brought a criminal case for fraud and money laundering.
Berlin to follow budget rules
The government intends to stick to its balanced budget rules for now and boost spending without incurring new debt, Minister of Finance Olaf Scholz told reporters on Tuesday, adding that it would use all fiscal options in a severe economic crisis. The government would lower its forecast for economic growth next year to 1 percent from an earlier estimate of 1.5 percent, a source familiar with the projection said on Tuesday. The government expects this year’s GDP to grow 0.5 percent.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s