SPAIN
China confident in Madrid
Chinese officials have faith in Madrid’s financial system and will continue to take part in government debt auctions, Chinese Vice Premier Li Keqiang (李克強) wrote in an editorial in El Pais yesterday. “China is a responsible, long-term investor in the European financial market and particularly in Spain, and we have confidence in the Spanish financial market, which has meant the acquisition of its public debt, something which we will continue to do in the future,” Li wrote. Spain has come under increasing pressure from international debt markets on concerns it may be forced to follow Greece and Ireland and seek an EU/IMF bailout, but while bond yields have risen, demand for Spanish debt remains solid.
SINGAPORE
Economic growth hits 12.5%
The city-state’s economy grew 12.5 percent in the fourth quarter of last year, a record year in which it was Asia’s strongest economic performer, government figures showed yesterday. The city-state grew 14.7 percent for the year as a whole, the figures confirmed, bounding back from a 1.3 percent contraction in 2009 in part thanks to the biomedical sector. Growth in the October to December quarter was powered largely by the manufacturing sector, which expanded 28.2 percent from a year ago, the Ministry of Trade and Industry said in a statement.
INTERNET
Facebook raises US$500m
A published report says social networking behemoth Facebook has raised US$500 million from Goldman Sachs and a Russian investment firm in a deal that values the company at US$50 billion. The New York Times reported on Sunday in its online edition that Goldman invested US$450 million and Digital Sky Technologies invested US$50 million. The newspaper cited people involved in the transaction that it did not name. The report said representatives for Facebook, Goldman and Digital Sky Technologies declined to comment.
METALS
Copper surges to record high
Copper jumped to a record high in New York, extending a second annual advance, on speculation that supply will lag behind demand as the global economic recovery gathers pace. Copper for March delivery on the COMEX in New York gained as much as 1 percent to US$4.4925 a pound, the highest ever for the most-active contract, before trading at US$4.4845 by 8:49am London time. The metal surged 33 percent last year as the global economy recovered from the worst recession since World War II. The London Metal Exchange and Shanghai Futures Exchange were closed yesterday for holidays.
AUTOMAKERS
Hyundai, Kia to boost sales
Hyundai Motor Co and affiliate Kia Motors Corp, South Korea’s two largest automakers, expect to boost vehicle sales 10 percent this year because of new models and rising demand in China and other emerging markets. Sales may rise to 6.33 million vehicles, Chung Mong-koo, chairman of the two carmakers, said yesterday in a speech to employees in Seoul. The companies sold a record 5.74 million vehicles last year, a 24 percent increase from 2009, according to regulatory filings. The automakers plan to release at least 12 new or revamped models this year after sales gains from Toyota Motor Corp helped make Hyundai become fastest-growing mass-market brand in the US.
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
TECH PARTNERSHIP: The deal with Arizona-based Amkor would provide TSMC with advanced packing and test capacities, a requirement to serve US customers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is collaborating with Amkor Technology Inc to provide local advanced packaging and test capacities in Arizona to address customer requirements for geographical flexibility in chip manufacturing. As part of the agreement, TSMC, the world’s biggest contract chipmaker, would contract turnkey advanced packaging and test services from Amkor at their planned facility in Peoria, Arizona, a joint statement released yesterday said. TSMC would leverage these services to support its customers, particularly those using TSMC’s advanced wafer fabrication facilities in Phoenix, Arizona, it said. The companies would jointly define the specific packaging technologies, such as TSMC’s Integrated
An Indian factory producing iPhone components resumed work yesterday after a fire that halted production — the third blaze to disrupt Apple Inc’s local supply chain since the start of last year. Local industrial behemoth Tata Group’s plant in Tamil Nadu, which was shut down by the unexplained fire on Saturday, is a key linchpin of Apple’s nascent supply chain in the country. A spokesperson for subsidiary Tata Electronics Pvt yesterday said that the company would restart work in “many areas of the facility today.” “We’ve been working diligently since Saturday to support our team and to identify the cause of the fire,”
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