■ US economy
War may hinder recovery
The war in Iraq poses the biggest obstacle to a US economic recovery, according to a survey of business economists released Monday. But the experts surveyed by the National Association of Business Economists (NABE) said the chances of a double-dip recession were "less than 50-50." The survey found that 41 percent said "international military operations and homeland defense were the biggest problems facing the economy," the NABE said in a statement. "A growing federal deficit was identified as the next most pressing issue." Some 80 percent of NABE respondents feel monetary policy is about right, with half expecting short-term rates will be unchanged in six months and 37 percent expecting rates will be between 25 and 50 basis points higher.
■ Banking
BOJ plans to buy shares
The Bank of Japan said yesterday it will expand an unprecedented plan to buy shares from banks by a half to help prevent potential market confusion triggered by the US-led war in Iraq. In its first major decision under new governor Toshihiko Fukui, the central bank decided to lift its stock purchasing target immediately to ¥3 trillion (US$25 billion) from ¥2 trillion. "This decision is based on the need to enhance efforts to reduce stock fluctuation risks for banks amid the war with Iraq and the recent intensified movements in stock prices," the central bank said in a statement.
■ Airlines
SA to cut flights to Japan
Singapore Airlines Ltd said yesterday it will reduce its scheduled flights on three routes between Singapore and Japan in the next two months, hit by weak demand due to the war against Iraq. The decision concerns the airline's services linking Singapore with Japanese cities of Nagoya, Hiroshima and Fukuoka as part of its plan to curtail 65 flights a week worldwide. Singapore Airlines said it will reduce its seven weekly flights to five for the Singapore-Fukuoka route beginning April 1 and start downsizing the Singapore-Nagoya service by the same scale on April 8. The Singapore-Hiroshima route will be cut from four flights a week to two, effective April 1, it said.
■ Beijing Jeep
Mitsubishi to buy stake
Mitsubishi Motors is set to take a stake in severely troubled Beijing Jeep, the joint venture between DaimlerChrysler and Beijing Automotive, after signing a letter of understanding, state press reported Tuesday. "Mitsubishi will become a new shareholder ... and this will usher our cooperation onto a new stage," said the Business Weekly, citing Tong Zhiyuan, executive vice-president of Beijing Jeep. Further financial details were not immediately available. The German car maker currently owns 42.4 percent of Bejing Jeep, with China's Beiijng Automotive holding a 57.6 percent stake.
■ Delta Air
Routes to be reduced
Delta Air Lines Inc, the third-largest US carrier, will reduce flights by 12 percent as the war in Iraq hurts air-travel demand and increases the risk that more airlines may seek bankruptcy protection. The cuts will start March 27 for US flights and in April for service to Europe, including two seasonal routes to Rome, Delta said in a statement. The changes will last at least through April and maybe longer if demand remains weak, it said.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source