■ Soaring oil a hindrance
The continued rise of international crude oil prices is poised to negatively impact Taiwan's economy, as 99 percent of the nation's oil supplies are imported, a Council of Economic Planning and Development official said Wednesday. Hung Juei-pin (洪瑞彬), director of the council's Economic Research Department, made the remarks in a report on the country's economic situation in the first half of the year. The council predicted in May that the economy might grow by 3.07 percent and more than 4 percent in the first and second half of this year with the growth for the whole year expected to register 3.63 percent. Considering the nation's heavy dependence on oil imports, Hung urged other government agencies to draw up strategies to ensure that the country has a stable oil supply in the long run and strengthen the implementation of its energy-saving policies.
■ China now a key farm market
China and Hong Kong together imported farm products worth US$440 million from Taiwan in the first half of this year, making them the nation's second-largest farm export market, according to the latest government tallies. he statistics released on Tuesday by the Directorate General of Budget, Accounting and Statistics (DGBAS) show that the figure marks an impressive annual growth rate of 7.9 percent. Japan was the top importer of Taiwan's agricultural goods in the same six-month period, purchasing US$620 million worth of farm produce, reflecting a 0.7 percent increase rate year on year. The US was the third with a value of US$180 million, a 1.6 percent expansion on an annual basis. The US exported the highest value of farm products, worth US$1.48 billion, to this country in the first six months, ahead of Australia and Japan in second place, each of which sold US$350 million worth of farm produce. Taiwan's farm trade totaled US$6.52 billion in the first half of this year, growing by 4.3 percent compared to the previous year's level. Exports and imports hit US$1.79 billion and US$4.73 billion, respectively, up by 5.2 percent and down by 3.9 percent, respectively, from the previous year's level.
■ Locals hurt by UK firm's demise
Computer-motherboard contract makers for PC brands Tiny and Time Computer are expected to suffer severely following the collapse of the UK's largest PC retailing group, Granville Technology, the DigiTimes reported on its Web site yesterday, citing sources. Companies that are expected to see negative impacts include Micro-Star International (微星), Albatron Technology (青雲科技) and Hon Hai Precision Industry (鴻海精密), as well as notebook computer suppliers like Arima Computer (華宇) and First International Computer (大眾), DigiTimes reported. The damage is still under estimation but DigiTimes said some of the companies may incur over US$1 million in accounts receivables due from Granville. According to the sources, Granville's financial troubles began three years ago and some companies began reducing shipments from that time, although only a few terminated supply contracts.
■ NT dollar dips
The New Taiwan dollar fell against its US counterpart yesterday, declining NT$0.049 to close at NT$31.893 on the Taipei foreign exchange market. Turnover was US$708 million, unchanged from Tuesday's level. "Higher oil prices may curb the Taiwan dollar's gains" in the past two days, said Gary Huang, a trader in Taipei at Union Bank of Taiwan (聯邦銀行). Crude oil topped US$62 a barrel on supply worries yesterday.
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
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