■ Sluggish TAIEX gains slightly
Shares rose slightly yesterday on buying of select high-tech shares, although decliners heavily outnumbered gainers as overall market sentiment remained sluggish. The TAIEX rose 10.29 points, or 0.16 percent, to 6,241.94. Since hitting a 14-month intraday high of 6,401 on June 23, the local market has lost steam as many retail investors took to the sidelines. "Yesterday's buyers were today's losers; today's index was supported only by government funds buying tech shares," Andrew Teng (鄧安瀾), a sales manager at Taiwan International Securities (金鼎證券), said yesterday. Market heavyweight Taiwan Semiconductor Manufacturing Co (台積電) gained 0.4 percent to close at NT$55.10, while memorychip maker Nanya Technology Corp (聯電) ended at NT$24.65, up 0.6 percent.
■ Packager blames loss on fire
Advanced Semiconductor Engineering Inc (日月光半導體), the world's biggest packager of semiconductors, said it expects to post a loss of NT$8 billion (US$253 million) to NT$9 billion in the second quarter because of a factory fire. The company's plant in northern Taiwan was damaged on May 1 by a fire that may have been caused by a boiler explosion. Insurance will cover NT$4 billion of losses from the incident, said Freddie Liu (劉思亮), a spokesman for the Kaohsiung-based company. "We'll book all the losses from the fire in the second quarter. Asset write-down will total between NT$12 billion and NT$13 billion," Liu said yesterday. The company had a net loss of NT$128 million in the first quarter as demand for chips used in personal computers and mobile phones fell. Advanced Semiconductor Engineering expects earnings to improve in the third quarter, as demand for chips used in PCs, consumer electronics and communications products picks up, Liu said, without offering a forecast.
■ AIG arranges financing
American International Group Inc (AIG), the world's largest insurer, hired five banks to arrange NT$10 billion (US$317 million) of financing for its credit-card business in Taiwan. BNP Paribas SA, Bank of Taiwan (台灣銀行), Calyon, Chang Hwa Commercial Bank (彰化銀行) and Standard Chartered Plc were picked to arrange the deal for the Taipei-based AIG Credit Card Co (Taiwan) Ltd, the banks said in a statement. The financing includes NT$4 billion in revolving credit and a NT$6 billion guarantee to back sales of commercial paper.
■ NT dollar remains weak
The New Taiwan dollar remained weak against its US counterpart yesterday, dropping NT$0.008 to close at NT$31.618 on the Taipei foreign exchange market. Turnover was US$974 million, down from US$1.25 billion the previous day.
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
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,”
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
RSS