UNITED STATES
GDP growth misses target
The economy last year missed the 3 percent growth target of the administration of President Donald Trump for a second straight year, posting its slowest annual growth in three years as a slump in business investment deepened amid damaging trade tensions. The 2.3 percent expansion last year reported by the Department of Commerce on Thursday suggested the White House and Republicans’ massive US$1.5 trillion tax cut package had provided the economy only a temporary boost. Moderate growth undercuts the argument by Trump and his fellow Republicans that strong growth would pay for the tax cuts, which are expected to help push the federal budget deficit to US$1.02 trillion this year. Growth last year was the slowest since 2016 and followed the 2.9 percent notched in 2018.
AUTOMAKERS
VW offers Navistar US$2.9bn
Volkswagen AG (VW) offered to buy the rest of Navistar International Corp in a US$2.9 billion bid to secure a bridgehead in the the US’ heavy-truck market and step up its challenge to global rivals Daimler AG and Volvo AB. Volkswagen’s Traton SE unit has offered Navistar holders US$35 a share in cash, 45 percent higher than its Thursday closing price. Navistar, which builds International-brand trucks, school buses, defense vehicles and engines, said its board would review the proposal, adding that there is no assurance the deal would take place. Volkswagen already owns a stake of almost 17 percent.
RETAIL
Perssons get fortune boost
Hennes & Mauritz AB (H&M) chairman Stefan Persson just received a hefty retirement gift from investors. Persson, who on Thursday announced he is stepping down in May, added US$1.4 billion to his fortune, as the clothing retailer’s shares rose 9.4 percent in Stockholm. His son Karl-Johan, the CEO, is to take over as chairman and hand the CEO role to chief operating officer Helena Helmersson, making her the first woman to run H&M. The jump in share price reinforces the Perssons’ standing as Sweden’s richest family,with a fortune of more than US$20 billion, according to the Bloomberg Billionaires Index. Stefan Persson, 72, said it was a “natural change” to hand control to his son after two decades as chairman. He said the family, which owns about half of the business, would remain committed owners of the world’s second-largest garment retailer.
MACROECONOMICS
France, Italy post declines
The French and Italian economies unexpectedly shrank at the end of last year, casting a shadow over expectations the eurozone was on a firmer footing. The French economy contracted 0.1 percent amid a decline in exports and a huge drag from companies using up stocks rather than increasing production. All of the economists surveyed by Bloomberg had predicted growth. Without the inventory effect, growth would have been about 0.3 percent, according to Bloomberg Economics. Italy’s GDP fell 0.3 percent, the most in almost seven years. Neighboring Spain fared significantly better at the end of last year, reinforcing its position as one of Europe’s outperformers. Faster-than-anticipated growth of 0.5 percent was driven by buoyant exports and a strong increase in services. France’s unexpected contraction is a sting for French President Emmanuel Macron, who is already facing mass protests and strikes against his pension reforms that have disrupted household spending.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
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