■ IBM, Bowa join forces
IBM Taiwan said yesterday that it had joined forces with Bowa Bank (寶華銀行), formerly known as Pan Asia Bank (泛亞銀行), to transform the lender's information technology infrastructure. Under the seven-year agreement, IBM will work with Bowa to upgrade its small and medium business financing and personal finance operations, they said in a joint statement, as the financial sector is facing more competition and domestic lenders are focusing on deepening relationships with key clients."Since [Taiwan's] WTO entry, foreign banks have entered the domestic financial services market and brought new financial products and new sales models to the Taiwan market, raising the competitive pressure for local banks," Bowa president Victor Liu (劉維琪) said.
■ Cross-strait trade growing
Taiwan's growing trade reliance on China may create greater risks amid the political tensions between the two sides, according to a report made public by the Bureau of Foreign Trade under the Ministry of Economic Affairs. With exports to and imports from China increasing during the past 10 years, Taiwan's foreign trade reliance on China has surged, the bureau report on 1994-2003 structural changes on Taiwan's outbound and inbound shipments said. During the 1994-2003 period, Taiwan's exports to China as a percentage to the country's overall exports rose 8.8 percent, while Taiwan's imports from China as a ratio to its imports expanded 6.4 percent, making China the trading partner with which Taiwan has registered the highest expansion rate in two-way trade.
■ Insurance rules relaxed
The Ministry of Finance granted new access Monday for Taiwan-based insurance companies wishing to edge into China by easing the rules to allow local firms to invest in their Chinese counterparts through shareholding. The rule change has been approved by the Executive Yuan and takes immediate effect, said Chen Wei-lung (陳惟龍), deputy director of the ministry's Department of Insurance. From now on, Taiwan-based insurance companies can invest in their China-based counterparts through buying their shares, Chen said. An annual ceiling of NT$2 billion (US$60.6 million) has been imposed on Taiwanese insurers who wish to do this, in line with requirements set by both Taiwanese and Chinese authorities, he added.
■ New store goes online
To further explore the development potential of the e-commerce market, Uni-President Enterprise Group (統一集團) has integrated its subsidiaries' resources to help people start businesses on the Internet. Yeh Shui-hsing (葉水興), president of Presco Netmarketing Inc (統一數網), unveiled a new online store, Bcity (貝可市場), at a press conference yesterday. This portal can save storeowners complicated application procedures and problems involving goods delivery and payment collection. Yeh said consumers trading on Bcity can make payments and pick up products at the 3,538 7-Eleven outlets nationwide, a guarantee that Internet trading frauds will be less likely to take place. "Within three hours, you can set up your virtual store in our Bcity," Yeh said.
■ NT dollar weakens
The New Taiwan dollar yesterday turned weak against its US counterpart, declining NT$0.020 to close at NT$32.945 on the Taipei foreign exchange market.
Turnover was US$591 million.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
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