■ Banking
Class action nets billions
Four investment banks on Wednesday agreed to pay a total of US$428.4 million to settle claims stemming from a class-action lawsuit brought by former shareholders of WorldCom Inc. New York state comptroller Alan Hevesi said in a statement that he had reached an agreement with Amsterdam-based ABN AMRO Bank for US$278.4 million. Mitsubishi Securities International Plc agreed to pay US$75 million, while BNP Paribas Securities Corp. and Mizuho International both agreed to pay US$37.5 million. Wednesday's settlements bring the total amount paid by investment banks to settle the suit to US$3.56 billion, surpassing the US$3.2 billion settlement by services giant Cendant Corp in 2000 over accounting fraud that cost shareholders billions, Hevesi said. Last week, Lehman Brothers Inc of New York agreed to pay US$62.7 million to settle the suit. Three other banks each agreed to pay US$12.54 million -- Credit Suisse First Boston; Goldman, Sachs and Co of New York; and UBS Warburg LLC.
■ Banking
HSBC boosts HK staff
HSBC Holdings Plc, Europe's largest bank by market value, plans to hire 200 employees to help sell wealth-management products in Hong Kong as it opens 18 financial management centers in the city to boost fee income. "We will continue to reduce our reliance on traditional interest income sources because of declining margins," said Dorothy Sit, head of personal financial services in Hong Kong, at a press briefing today. "We hope 2004 was the worst, but some things are beyond our control." HSBC reported its slowest earnings growth in two-and-a-half years as earnings from consumer lending in the US declined.
■ Litigation
Coach fed up with Vuitton
Coach, Inc, a leading marketer of modern classic American accessories, said on Wednesday it has filed a complaint with the Japanese Fair Trade Commission against French firm LVMH Moet Hennessy Louis Vuitton, accusing it of harassing and anti-competitive practices. The complaint, filed in Tokyo on Tuesday, alleges LVMH engaged in inappropriate and threatening behavior by exerting pressure on common business partners in Japan. LVMH is being accused of threatening department-store management with either not going forward with development plans or pulling the Louis Vuitton brand out of certain locations entirely if the retailers allowed Coach to open or expand.
■ Gold
Ten-week high for gold
Gold rose to its highest level in 10 weeks after the US dollar weakened to a nine-week low against the euro, boosting the precious metal's appeal as an alternative investment to US stocks. The US dollar fell in Asia after Japanese Prime Minister Junichiro Koizumi said his country "in general" needs to consider diversifying its foreign reserves. Spot gold prices have gained 10.5 percent in the last 12 months as the euro rose 9.8 percent against the dollar in the same period. Gold for immediate delivery rose as much as US$2.06, or 0.5 percent, to US$442.65 an ounce, the highest since an intraday high of US$444.49 last Dec. 29. It traded at US$442.15 an ounce at 2:42pm Singapore time, up US$1.55 from US$440.60 yesterday in New York, the highest closing price since Dec. 28.
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