■ SOUTH KOREA
GDP growth slows to 0.7%
The economy grew at the slowest pace for more than three years in the first quarter as exports and investment fell amid slowing consumer spending, the central bank said yesterday. The seasonally adjusted GDP expanded 0.7 percent in the first quarter, compared with 1.6 percent in the fourth quarter of last year, an advance estimate by the Bank of Korea showed. It was the slowest expansion since the 0.7 percent growth recorded in the fourth quarter of 2004. Year-on-year, GDP grew 5.7 percent — the same pace as for the fourth quarter. The bank forecast that the economy would grow 4.7 percent this year, down from 5 percent last year.
■ BONDS
Five-year bond yields jump
Japanese government bonds tumbled, causing the biggest jump in five-year yields in nine years, after inflation accelerated, global stocks climbed and the US dollar rallied against the yen. Ten-year bond futures plunged as much as 1.8 percent, forcing the Tokyo Stock Exchange to order a 15-minute halt in trading for the first time since September 2002. The statistics bureau said that consumer prices last month climbed 1.2 percent from a year earlier, adding to speculation the Bank of Japan would increase its target interest rate this year.
■ ELECTRONICS
Toshiba’s annual profit dips
Japan’s Toshiba Corp said yesterday its annual net profit dipped more than 7 percent after losing out in a next-generation DVD format war and forecast a modest rise for this year. The electronics and engineering giant also saw sharp falls in the profitability of its semiconductor and liquid-crystal-display panel businesses, blaming falling prices. Toshiba said its net profit fell 7.3 percent year-on-year to ¥127.4 billion (US$1.23 billion) in the year ended March. Revenue, however, rose 7.8 percent to ¥7.67 trillion. For the new fiscal year to March 2009, Toshiba predicted that net profit would rise 2 percent.
■ STEEL
Nippon’s pre-tax profit falls
Asia’s largest steelmaker Nippon Steel said yesterday its pre-tax profit fell for the first time in six years owing to rising material costs and braced itself for tough times ahead. The Japanese firm, the world’s largest steelmaker after new behemoth Arcelor Mittal, said its net profit for the year to March edged up 1.1 percent to ¥354.99 billion (US$3.4 billion) compared with the previous year. Sales jumped 12.2 percent to ¥4.83 trillion, thanks to robust demand in booming emerging economies. “Production volume reached a record level thanks to brisk demand in emerging markets, which more than offset some softening of demand in the United States,” vice president Kiichiro Masuda said. “But unprecedented rises in purchasing costs cut heavily into profit margin.”
■ FOOD
Arby’s to acquire Wendy’s
Wendy’s, the third-largest US fast food chain, is to be taken over by the parent firm of smaller rival Arby’s in a multibillion-dollar stock deal, the companies said on Thursday. The merger comes after years of pressure by billionaire investor Nelson Peltz, who owns Arby’s parent firm, Triac Cos, and who became the largest Wendy’s stockholder in order to pressure a sale. The deal is worth US$2.3 billion, and Wendy’s stockholders are to receive 4.25 shares of Triac for each Wendy’s share, the companies said. The two chains have about 10,000 restaurants across the US, trailing industry leader McDonald’s and No. 2 Burger King.
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
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
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