■ ECONOMY
Recession likely: Greenspan
A recession in the US remains a probability, former Federal Reserve chairman Alan Greenspan said in an interview published yesterday. Speaking to the Financial Times from Washington, Greenspan said he believed “there is a greater than 50 percent probability of recession.” He noted, however, that “that probability has receded a little.” The likelihood of a severe recession had “come down markedly,” but it was too soon to tell whether the worst was already over, he said. Greenspan estimated that house prices in the US would drop by a further 10 percent from their levels in February — a 25 percent drop from their peak, the Financial Times reported. “Such house price declines imply a major contraction in the level of equity in owner-occupied homes, the ultimate collateral for mortgage-backed securities,” he said.
■ ECONOMY
HSBC head urges rate hike
The chief executive of Europe’s biggest lender yesterday called on central bankers to raise interest rates in order to combat inflation. Michael Geoghegan, group chief executive at London-based HSBC Holdings, said central banks were not yet committed to taming inflation, and predicted US interest rates would rise after the US presidential election in November. “Inflation is a long-term problem because there is no long-term will to solve it,” Geoghegan said during a speech organized by the Asia Society in Hong Kong.
■ TELECOMS
Vodafone reports profit
Mobile phone company Vodafone PLC yesterday announced a return to full-year net profit from a loss the previous year, and said chief executive Arun Sarin would step down at the end of July. Sarin has held the top job for five years and will be replaced by his deputy, Vittorio Colao. Vodafone said net profit for the year to March 31 was £6.7 billion (US$13.25 billion) from a net loss of £4.9 billion a year earlier. Revenues increased 14 percent to £35.5 billion pounds, from £31.1 billion pounds the year before.
■ ELECTRONICS
LG mum on acquiring GE
LG Electronics CEO Nam Yong said yesterday that General Electric’s plans to sell or spin off its appliance business has the potential to shake up the industry. “This could greatly impact the entire appliance industry,” Nam told reporters. “This might reshape the digital appliance market globally so we are watching very closely.” He was responding to a question about whether LG itself might be interested in acquiring the business. Asked again later, he reiterated that his company was monitoring the situation and said he could not comment further. Fairfield, Connecticut-based GE said earlier this month that it plans to sell or spin off its iconic appliance business that has sold refrigerators, washing machines and dishwashers for a century, part of a restructuring plan.
■ ELECTRONICS
Electrolux to shift plants
Swedish home appliance maker Electrolux said yesterday it will close one of its refrigerator plants in Italy to boost competitiveness, citing the results of an internal review. Production of refrigerators at Scandicci, southwest of Florence, will relocate to the group’s plant at Susegana, impacting some 450 employees, the group said. Electrolux said it planned to help find “solutions to reduce negative impact on affected employees,” noting possibilities like outplacement services. Meanwhile the group was to invest in the Susegana plant about 45km north of Venice.
ROLLER-COASTER RIDE: More than five earthquakes ranging from magnitude 4.4 to 5.5 on the Richter scale shook eastern Taiwan in rapid succession yesterday afternoon Back-to-back weather fronts are forecast to hit Taiwan this week, resulting in rain across the nation in the coming days, the Central Weather Administration said yesterday, as it also warned residents in mountainous regions to be wary of landslides and rockfalls. As the first front approached, sporadic rainfall began in central and northern parts of Taiwan yesterday, the agency said, adding that rain is forecast to intensify in those regions today, while brief showers would also affect other parts of the nation. A second weather system is forecast to arrive on Thursday, bringing additional rain to the whole nation until Sunday, it
LANDSLIDES POSSIBLE: The agency advised the public to avoid visiting mountainous regions due to more expected aftershocks and rainfall from a series of weather fronts A series of earthquakes over the past few days were likely aftershocks of the April 3 earthquake in Hualien County, with further aftershocks to be expected for up to a year, the Central Weather Administration (CWA) said yesterday. Based on the nation’s experience after the quake on Sept. 21, 1999, more aftershocks are possible over the next six months to a year, the agency said. A total of 103 earthquakes of magnitude 4 on the local magnitude scale or higher hit Hualien County from 5:08pm on Monday to 10:27am yesterday, with 27 of them exceeding magnitude 5. They included two, of magnitude
CONDITIONAL: The PRC imposes secret requirements that the funding it provides cannot be spent in states with diplomatic relations with Taiwan, Emma Reilly said China has been bribing UN officials to obtain “special benefits” and to block funding from countries that have diplomatic ties with Taiwan, a former UN employee told the British House of Commons on Tuesday. At a House of Commons Foreign Affairs Committee hearing into “international relations within the multilateral system,” former Office of the UN High Commissioner for Human Rights (OHCHR) employee Emma Reilly said in a written statement that “Beijing paid bribes to the two successive Presidents of the [UN] General Assembly” during the two-year negotiation of the Sustainable Development Goals. Another way China exercises influence within the UN Secretariat is
Taiwan’s first drag queen to compete on the internationally acclaimed RuPaul’s Drag Race, Nymphia Wind (妮妃雅), was on Friday crowned the “Next Drag Superstar.” Dressed in a sparkling banana dress, Nymphia Wind swept onto the stage for the final, and stole the show. “Taiwan this is for you,” she said right after show host RuPaul announced her as the winner. “To those who feel like they don’t belong, just remember to live fearlessly and to live their truth,” she said on stage. One of the frontrunners for the past 15 episodes, the 28-year-old breezed through to the final after weeks of showcasing her unique