■ ECONOMY
More firms mulling layoffs
One-fourth of US employers expect to make layoffs or other cost-cutting moves in the next 12 months to cope with the economic turmoil, a survey showed on Thursday. Most companies are focusing on increased employee communication during the turbulence and smaller cost-saving measures, a survey of 248 companies by Watson Wyatt, a global consulting firm, in the middle of this month showed. More than one-third are planning to increase their communications concerning pay (37 percent) and benefits (35 percent), Watson Wyatt said, adding that 26 percent were planning layoffs while 25 percent said a hiring freeze was likely.
■ UNITED KINGDOM
Third-quarter GDP fell 0.5%
The economy shrank more than expected and for the first time in 16 years in the third quarter of this year as fears mount that the nation could be in for a painful and prolonged recession. The Office for National Statistics said yesterday that third-quarter GDP slid 0.5 percent — the biggest drop since the fourth quarter of 1990 and the first contraction since the second quarter of 1992. The figures are likely to boost expectations that another hefty interest rate cut is on the way next month to shore up the economy.
■ AVIATION
Airline group behind target
Air France-KLM said yesterday it would be difficult to reach its operating profit target of about 1 billion euros (US$1.28 billion) for the full year as the financial crisis dents air travel. But the company underlined that “the operating result will remain comfortably in profit as long as market conditions do not deteriorate any further.” Shares plunged to their lowest level in more than three years on Thursday after the airline group said it expected no growth in capacity for two years, meaning it believed traffic would fall because of the economic slowdown.
■ STEEL
Tata profits surprise
The world’s sixth-largest steel maker, India’s Tata Steel, yesterday announced a better-than-expected 50.1 percent rise in its second-quarter net profit. The company announced net profit rose to 17.87 billion rupees (US$357 million) for the quarter ending Sept. 30 from 11.9 billion rupees a year earlier. Other income rose to 1.06 billion rupees from 610 million rupees a year earlier, the company said.
■ FINANCE
China tightens supervision
Beijing is tightening supervision of local financial companies by requiring monthly reports on their foreign currency exposure to ensure stability amid the global turmoil, state media said yesterday. The new rules, which take effect this month, apply to both domestic and overseas branches of Chinese institutions, Shanghai Securities News said.
■ AUTOMOBILES
Toyota to post losses
Toyota Motor Corp will post its first ever operating loss in North America in the six months through September as demand slumps in the world’s largest economy, reports said yesterday. Japan’s Jiji Press said Toyota would post an operating loss of several hundred million dollars in the first half of the financial year for North America, its first since entering the market in the 1980s. Jiji Press and the Mainichi Shimbun, quoting unnamed company sources, said that Toyota would still remain in the black on a net level in North America for the first half, backed by sales of financial products.
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