■TRAVEL
China eases visa rules
China widened market access to Hong Kong companies and eased visa rules for Chinese tourists leaving China to visit the city and Taiwan, expanding an accord aimed at bolstering the economy of the former British colony. Chinese tourism groups will be able to leave China to visit Taiwan and Hong Kong using a single visa as part of an accord signed yesterday, a statement distributed to reporters in Hong Kong said. The accord loosens restrictions across 20 industries in total, including banking, securities, rail and research. Today’s accord is the sixth addition to the Closer Economic Partnership Agreement signed in 2003.
■TELECOMS
AT&T, Verizon reach deal
AT&T Inc said on Friday it would buy the assets of Verizon Wireless in 79 mainly rural areas for US$2.35 billion, a deal that will affect more than 1 million subscribers. Verizon Wireless was forced to sell the service areas, which are spread over 18 states, to satisfy regulatory conditions of its purchase of Alltel Corp. The areas are mainly Alltel territories that overlap with Verizon’s own coverage, but also some Verizon territories and areas covered by Rural Cellular, another carrier Verizon bought last year.
■FINANCE
Wells Fargo raises offering
Wells Fargo said on Friday it raised its share offering to US$8.6 billion amid strong investor demand as the banking group moved to comply with a “stress test” requirement to boost capital. “Our common stock offering was heavily oversubscribed, reflecting, in our view, confidence on the part of both institutional and retail investors in Wells Fargo’s business model and financial strength,” chief financial officer Howard Atkins said. Wells Fargo was among 10 banks reported to be short on capital, based on the “stress tests” meant to gauge the capital adequacy ratios of banks to cope with any further financial market turmoil.
■MALAYSIA
Bank lowers forecast
Malaysia’s central bank said it would lower the country’s economic forecast for this year amid a worse-than-expected slump in exports, predicting the economy would recover in the second half of the year. “The export contraction was much greater than was earlier envisaged,” Governor Zeti Akhtar Aziz said in an interview in Singapore yesterday. “We will be revising our numbers as well. The important part is the domestic sector continues to grow.” Southeast Asia’s third-largest economy is facing its first contraction in a decade, with the central bank currently forecasting it will shrink by 1 percent this year or expand by that amount. The 1.5 percentage points of interest-rate cuts since late November and the government’s 67 billion ringgit (US$19 billion) of stimulus measures are enough for now, Zeti said.
■RECESSION
More stimulus needed: IMF
Asian nations should be prepared to make further stimulus moves to boost their economies next year, the South China Morning Post reported, citing an IMF official. Joshua Felman, assistant director of the IMF’s Asia and Pacific Department, expects the Asian economies to remain weak, the Hong Kong newspaper said. “You have programs, many of which are set to expire this year and you’re probably going to need to continue them next year,” Felman was quoted as saying. The IMF projects Asian economies to grow 1.3 percent this year, down from 5.1 percent last year.
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday held its first board of directors meeting in the US, at which it did not unveil any new US investments despite mounting tariff threats from US President Donald Trump. Trump has threatened to impose 100 percent tariffs on Taiwan-made chips, prompting market speculation that TSMC might consider boosting its chip capacity in the US or ramping up production of advanced chips such as those using a 2-nanometer technology process at its Arizona fabs ahead of schedule. Speculation also swirled that the chipmaker might consider building its own advanced packaging capacity in the US as part
‘NO DISRUPTION’: A US trade association said that it was ready to work with the US administration to streamline the program’s requirements and achieve shared goals The White House is seeking to renegotiate US CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told reporters. The people, along with a third source, said that the new US administration is reviewing the projects awarded under the 2022 law, meant to boost US domestic semiconductor output with US$39 billion in subsidies. Washington plans to renegotiate some of the deals after assessing and changing current requirements, the sources said. The extent of the possible changes and how they would affect agreements already finalized was not immediately clear. It was not known
A move by US President Donald Trump to slap a 25 percent tariff on all steel imports is expected to place Taiwan-made steel, which already has a 25 percent tariff, on an equal footing, the Taiwan Steel & Iron Industries Association said yesterday. Speaking with CNA, association chairman Hwang Chien-chih (黃建智) said such an equal footing is expected to boost Taiwan’s competitive edge against other countries in the US market, describing the tariffs as "positive" for Taiwanese steel exporters. On Monday, Trump signed two executive orders imposing the new metal tariffs on imported steel and aluminum with no exceptions and exemptions, effective