WORLD ECONOMY
IMF trims growth forecasts
The IMF yesterday cut its expectations for world economic growth this year and next, with chief economist Olivier Blanchard forecasting growth of 3 to 4 percent this year and by about the same rate next year. At the beginning of last month, the IMF had forecast in its six-monthly assessment of the economic outlook that the global economy would grow 4.8 percent this year and 4.2 percent next year. Blanchard said by telephone from the IMF’s headquarters in Washington that there would be differences between growth in regions, with economies in advanced countries growing by 1 to 2 percent and in emerging countries by 6 to 8 percent or more. Blanchard also described as “courageous” a decision by the US Federal Reserve on Wednesday to inject an extra US$600 billion into the US economy by means of a new round of quantative easing whereby the bank buys bonds.
INSURANCE
Swiss Re profit doubled in Q3
Swiss Re, one of the world’s biggest insurers, yesterday reported a near doubling of its third-quarter net profit, allowing it to repay crisis funding from US billionaire Warren Buffett. Swiss Re said in a statement that third-quarter net profit reached US$618 million, up 97 percent over the same period last year and well above analysts’ expectations. In 2008, Swiss Re posted its biggest-ever loss of 864 million Swiss francs, forcing the group to turn to Warren Buffett’s Berkshire Hathaway for fresh funds in the form of a 20 percent stake in the company.
COMMUNICATIONS
UK probes News Corp bid
The British government has intervened to investigate a bid by Rupert Murdoch’s News Corp to buy full control of satellite broadcaster BSkyB. Business Secretary Vince Cable yesterday asked the broadcasting regulator, Ofcom, to investigate whether the News Corp bid would damage competition. The European Commission also said it was reviewing News Corp’s bid.
AUTOMOBILES
Nissan profit jumps fourfold
Japanese automaker Nissan Motor yesterday said its quarterly net profit increased fourfold to ￥101.7 billion (US$1.18 billion) and raised its full-year forecast despite the pressures of a strong yen. The July-September figure was four times higher than the ￥25.5 billion posted for the same period a year ago. The automaker raised its full-year profit outlook to ￥270 billion from ￥150 billion in July. For the first half, the company posted a net profit of ￥208.4 billion, up 93 percent year-on-year.
SPORTSWEAR
Adidas raises 2010 targets
Adidas, the world’s second-biggest sports clothing and equipment maker, yesterday raised its full-year targets and gave an upbeat outlook for next year after unveiling a strong third-quarter profit. Adidas said third-quarter net profit jumped 25 percent from the same period a year earlier to 266 million euros (US$375 million) on sales that gained 20 percent to 3.47 billion euros, owing in part to foreign exchange effects. Adidas raised its full-year forecasts to an 8 percent sales increase and earnings per share of 2.68 euros to 2.70 euros. It had previously expected sales to gain between 3 and 8 percent and earnings per share of 2.50 euros to 2.62 euros. The German group also gave an outlook for next year, when it expects “further gradual improvements in the consumer environment.” As a result, sales by Adidas and it US brand Reebok are forecast to grow by about 5 percent and net profit by 10 to 15 percent.
KEEPING UP: The acquisition of a cleanroom in Taiwan would enable Micron to increase production in a market where demand continues to outpace supply, a Micron official said Micron Technology Inc has signed a letter of intent to buy a fabrication site in Taiwan from Powerchip Semiconductor Manufacturing Corp (力積電) for US$1.8 billion to expand its production of memory chips. Micron would take control of the P5 site in Miaoli County’s Tongluo Township (銅鑼) and plans to ramp up DRAM production in phases after the transaction closes in the second quarter, the company said in a statement on Saturday. The acquisition includes an existing 12 inch fab cleanroom of 27,871m2 and would further position Micron to address growing global demand for memory solutions, the company said. Micron expects the transaction to
Vincent Wei led fellow Singaporean farmers around an empty Malaysian plot, laying out plans for a greenhouse and rows of leafy vegetables. What he pitched was not just space for crops, but a lifeline for growers struggling to make ends meet in a city-state with high prices and little vacant land. The future agriculture hub is part of a joint special economic zone launched last year by the two neighbors, expected to cost US$123 million and produce 10,000 tonnes of fresh produce annually. It is attracting Singaporean farmers with promises of cheaper land, labor and energy just over the border.
US actor Matthew McConaughey has filed recordings of his image and voice with US patent authorities to protect them from unauthorized usage by artificial intelligence (AI) platforms, a representative said earlier this week. Several video clips and audio recordings were registered by the commercial arm of the Just Keep Livin’ Foundation, a non-profit created by the Oscar-winning actor and his wife, Camila, according to the US Patent and Trademark Office database. Many artists are increasingly concerned about the uncontrolled use of their image via generative AI since the rollout of ChatGPT and other AI-powered tools. Several US states have adopted
A proposed billionaires’ tax in California has ignited a political uproar in Silicon Valley, with tech titans threatening to leave the state while California Governor Gavin Newsom of the Democratic Party maneuvers to defeat a levy that he fears would lead to an exodus of wealth. A technology mecca, California has more billionaires than any other US state — a few hundred, by some estimates. About half its personal income tax revenue, a financial backbone in the nearly US$350 billion budget, comes from the top 1 percent of earners. A large healthcare union is attempting to place a proposal before
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