■ Banking
Citigroup buys finance unit
Citigroup Inc has agreed to acquire Washington Mutual Inc's Washington Mutual finance unit for US$1.25 billion, reports said Tuesday. Citigroup, the world's leading provider of financial services, said that acquiring the finance business of Washington Mutual would add to profits next year. In a news release Monday, it also said acquiring Washington Mutual Finance accelerates growth of its CitiFinancial business, which offers direct consumer instalment loans and real estate secured loans and sells insurance. Washington Mutual, based in Tampa, Florida, had assets of US$4.1 billion as of Sept. 30. The companies expect the deal will close in the first quarter, following customary regulatory approvals.
■ Macroeconomics
Singapore raises production
Singapore churned out more pharmaceuticals and electronics last month, pushing industrial production higher year-on-year for the third straight month, the government said yesterday. Manufacturing expanded by 19.3 percent last month from a year earlier, following 6.2 percent on-year growth in September, the Economic Development Board said in a statement. Singapore's manufacturing sector is growing again after the economy contracted 3.8 percent on year in the second quarter, because of the SARS outbreak. Electronics output expanded 12.7 percent on year from a 10.9 percent expansion in September. Companies produced more semiconductor and data storage devices, but output of computer peripherals fell for a third straight month, the statement said.
■ Trade
China blasts US tariffs
China said seven US anti-dumping cases this year against Chinese products ranging from televisions to furniture have affected US$1.6 billion of goods and damaged trade ties between the two countries. Washington's decision on Monday to impose tariffs of as much as 46 percent on color television imports from China "violates WTO" principles, China's commerce ministry said in a statement. The ruling came a week after the US imposed limits on some Chinese textile imports. China will engage its US counterparts to defend the interests of its television makers, the ministry said in its statement. The US ruling is "unfair" toward China's manufacturers and would affect more than US$450 million of Chinese goods, the ministry said.
■ Airlines
Qantas outlines strategy
Australian flag carrier Qantas Airways Ltd said yesterday it would base its new no-frills airline, to be launched next year, in Melbourne. Qantas chief executive Geoff Dixon said the new airline would eventually employ about 1,000 people in the capital of Victoria state. "While the new low-cost carrier is good news for the whole Australian tourism industry, today's announcement means that Qantas will further expand its commitment to the Victorian economy and Victorian tourism, building on a partnership that has been in place for more than 60 years," he said. Qantas approved the low fares airline last month after deliberating for more than 12 months. It forms a key plank of Qantas' response to the challenge from British tycoon Richard Branson's Virgin Blue, which has captured almost 30 percent of the Australian domestic market since its launch in 2001.
Beijing’s continued provocations in the Taiwan Strait reveal its intention to unilaterally change the “status quo” in the area, the US Department of State said on Saturday, calling for a peaceful resolution to cross-strait issues. The Coast Guard Administration (CGA) reported that four China Coast Guard patrol vessels entered restricted and prohibited waters near Kinmen County on Friday and again on Saturday. A State Department spokesperson said that Washington was aware of the incidents, and urged all parties to exercise restraint and refrain from unilaterally changing the “status quo.” “Maintaining peace and stability across the Taiwan Strait is in line with our [the
EXTENDED RANGE: Hsiung Sheng missiles, 100 of which might be deployed by the end of the year, could reach Chinese command posts and airport runways, a source said A NT$16.9 billion (US$534.93 million) project to upgrade the military’s missile defense systems would be completed this year, allowing the deployment of at least 100 long-range Hsiung Sheng missiles and providing more deterrence against China, military sources said on Saturday. Hsiung Sheng missiles are an extended-range version of the Hsiung Feng IIE (HF-2E) surface-to-surface cruise missile, and are believed to have a range of up to 1,200km, which would allow them to hit targets well inside China. They went into mass production in 2022, the sources said. The project is part of a special budget for the Ministry of National Defense aimed at
READY TO WORK: Taiwan is eager to cooperate and is hopeful that like-minded states will continue to advocate for its inclusion in regional organizations, Lai said Maintaining the “status quo” in the Taiwan Strait, and peace and stability in the Indo-Pacific region must be a top priority, president-elect William Lai (賴清德) said yesterday after meeting with a delegation of US academics. Leaders of the G7, US President Joe Biden and other international heads of state have voiced concerns about the situation in the Strait, as stability in the region is necessary for a safe, peaceful and prosperous world, Lai said. The vice president, who is to be inaugurated in May, welcomed the delegation and thanked them for their support for Taiwan and issues concerning the Strait. The international community
COOPERATION: Two crewmembers from a Chinese fishing boat that sank off Kinmen were rescued, two were found dead and another two were still missing at press time The Coast Guard Administration (CGA) was yesterday working with Chinese rescuers to find two missing crewmembers from a Chinese fishing boat that sank southwest of Kinmen County yesterday, killing two crew. The joint operation managed to rescue two of the boat’s six crewmembers, but two were already dead when they were pulled from the water, the agency said in a statement. Rescuers are still searching for two others from the Min Long Yu 61222, a boat registered in China’s Fujian Province that capsized and sank 1.03 nautical miles (1.9km) southwest of Dongding Island (東碇), it added. CGA Director-General Chou Mei-wu (周美伍) told a