■RECESSION
IMF: downturn might slow
The global economic meltdown may be starting to abate, and recovery could emerge next year if countries act together and immediately adopt policies aimed at ending the recession, the head of the IMF said on Thursday. “The fact that the current downturn is highly synchronized and associated with deep financial crises suggests that it is likely to be persistent, with a weaker-than-average recovery,” the IMF said in the analytical chapters to its semiannual World Economic Outlook released in advance of the report’s publication next week.
■GAMING
Mirage may file bankruptcy
Billionaire Carl Icahn and an investment fund believe MGM Mirage Inc should file for bankruptcy, the Wall Street Journal reported on Thursday. They want the Las Vegas-based casino operator to restructure its more than US$13 billion in debt as soon as possible. MGM Mirage spokesman Alan Feldman said the company had productive discussions with its lenders and declined to comment further.
■MINING
Diamond output halved
Botswana, the world’s largest diamond producer, will slash its output by more than half this year because of plummeting demand for the gems, the main diamond company announced yesterday. Debswana, jointly owned by the Botswana government and De Beers, said in a statement that the country was going to produce 15 million carats of diamonds this year against 33 million carats last year. The mining industry in Botswana has cut 4,500 jobs as global demand for the precious stones has plummeted.
■RETAIL
Biggest mall owner bankrupt
General Growth Properties Inc, the second-largest US mall owner, declared bankruptcy on Thursday in the biggest real estate failure in US history. Ending months of speculation, General Growth, along with 158 of its 200-plus US malls, filed Chapter 11 while it tries to refinance its debts. The company received approval on Thursday from federal bankruptcy Judge Allan Gropper to use its cash collateral to operate its businesses during bankruptcy. Chicago-based General Growth owns such valuable properties as South Street Seaport in New York, Fashion Show in Las Vegas and Faneuil Hall Marketplace in Boston.
■INSURANCE
AIG to sell car business
Insurer American International Group Inc (AIG) said Thursday it will sell its car insurance unit, 21st Century Insurance, to Zurich Financial Services Group for US$1.9 billion. Under terms of the agreement, Zurich’s Los Angeles-based insurer Farmers Group will pay US$1.5 billion in cash and US$400 million in subordinated, euro-dominated capital notes backed by Zurich Insurance Company, AIG said.
■AUTOMOBILES
Volkswagen sales plummet
German auto maker Volkswagen (VW) is likely to suffer a 10 percent slide in sales in the first quarter in a global auto market that is 20 percent weaker, a member of VW’s board of directors said on Thursday. “We are going to have a world market that is down about at least 20 percent and we will be down about 10 percent in the first quarter,” said Christian Klinger. VW chairman Martin Winterkorn said there was some uncertainty as to whether VW’s first quarter earnings would turn out negative or positive.
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