BRAZIL
Key interest rate raised
The central bank on Wednesday raised its key interest rate a half a percentage point to 11.75 percent as it turned the screw further on climbing inflation. The increase — which put the rate at the highest in the G20 group of developed and emerging economies — was expected, given inflation of 5.9 percent last year, well above the government target of 4.5 percent. It was likely, though, to undermine government efforts to slow the appreciation of the real, whose soaring value against the US dollar is sapping exports.
SOUTH KOREA
Foreign reserves hit record
The nation’s foreign currency reserves hit a record high for the second straight month. The Bank of Korea announced yesterday that the country’s official foreign reserves totaled US$298 billion at the end of last month. That was up US$1.7 billion from the previous high of US$296 billion in January. Asian countries lead the world in reserve holdings. The central bank attributed last month’s gain to higher operating profits on the reserves and gains in the euro and sterling against the greenback.
SOUTH KOREA
Industrial output rises fast
Industrial output was stronger than expected in January on strong overseas demand, with semiconductor and automakers leading the way, official figures showed yesterday. Mining and industrial production increased 4.6 percent from the preceding month following a revised 3.1 percent monthly increase in December, Statistics Korea said. The January rise was the largest since the same figure in September 2009.
RETAIL
Carrefour expects more sales
Carrefour SA, the world’s second-largest retailer, forecast an increase in sales and profit this year after matching its revised guidance for profit growth last year. Current operating income rose 9.3 percent to 2.97 billion euros (US$4.1 billion) last year, from a restated 2.72 billion euros, the Paris-based grocer said yesterday in a statement, in line with a January estimate. Net income rose to 433 million euros from 276 million euros, trailing the 695.5 million euro average estimate of 19 analysts surveyed.
UNITED KINGDOM
Murdoch gets nod on BSkyB
The British government has tentatively accepted plans by Rupert Murdoch’s News Corp to buy full control of British Sky Broadcasting (BSkyB). Culture Secretary Jeremy Hunt said approval was conditional on BSkyB spinning off Sky News as an independent company. News Corp would retain a 39.1 percent stake in Sky News, the same as its current stake in BSkyB. The plan is still subject to consultation before gaining final approval. News Corp would then be free to make an offer for the remaining BSkyB shares.
INSURANCE
Buffet enters Indian market
Billionaire Warren Buffett’s Berkshire Hathaway is entering the Indian insurance market as a corporate agent for Bajaj Allianz, the companies said. Berkshire made no investment in Bajaj, but will sell policies for Bajaj Allianz General Insurance, beginning with auto insurance, Bajaj spokesman Santosh Balan said yesterday. Insurance for India’s fast-growing auto market accounts for over 50 percent of Bajaj Allianz’s premium income, which amounted to 20.9 billion rupees (US$465 million) from April through December last year Balan said. Berkshire India, will focus on direct sales via Internet and telemarketing and get commissions per regulatory norms.
TECH RACE: The Chinese firm showed off its new Mate XT hours after the latest iPhone launch, but its price tag and limited supply could be drawbacks China’s Huawei Technologies Co (華為) yesterday unveiled the world’s first tri-foldable phone, as it seeks to expand its lead in the world’s biggest smartphone market and steal the spotlight from Apple Inc hours after it debuted a new iPhone. The Chinese tech giant showed off its new Mate XT, which users can fold three ways like an accordion screen door, during a launch ceremony in Shenzhen. The Mate XT comes in red and black and has a 10.2-inch display screen. At 3.6mm thick, it is the world’s slimmest foldable smartphone, Huawei said. The company’s Web site showed that it has garnered more than
CROSS-STRAIT TENSIONS: The US company could switch orders from TSMC to alternative suppliers, but that would lower chip quality, CEO Jensen Huang said Nvidia Corp CEO Jensen Huang (黃仁勳), whose products have become the hottest commodity in the technology world, on Wednesday said that the scramble for a limited amount of supply has frustrated some customers and raised tensions. “The demand on it is so great, and everyone wants to be first and everyone wants to be most,” he told the audience at a Goldman Sachs Group Inc technology conference in San Francisco. “We probably have more emotional customers today. Deservedly so. It’s tense. We’re trying to do the best we can.” Huang’s company is experiencing strong demand for its latest generation of chips, called
ISSUES: Gogoro has been struggling with ballooning losses and was recently embroiled in alleged subsidy fraud, using Chinese-made components instead of locally made parts Gogoro Inc (睿能創意), the nation’s biggest electric scooter maker, yesterday said that its chairman and CEO Horace Luke (陸學森) has resigned amid chronic losses and probes into the company’s alleged involvement in subsidy fraud. The board of directors nominated Reuntex Group (潤泰集團) general counsel Tamon Tseng (曾夢達) as the company’s new chairman, Gogoro said in a statement. Ruentex is Gogoro’s biggest stakeholder. Gogoro Taiwan general manager Henry Chiang (姜家煒) is to serve as acting CEO during the interim period, the statement said. Luke’s departure came as a bombshell yesterday. As a company founder, he has played a key role in pushing for the
Vanguard International Semiconductor Corp (世界先進) and Episil Technologies Inc (漢磊) yesterday announced plans to jointly build an 8-inch fab to produce silicon carbide (SiC) chips through an equity acquisition deal. SiC chips offer higher efficiency and lower energy loss than pure silicon chips, and they are able to operate at higher temperatures. They have become crucial to the development of electric vehicles, artificial intelligence data centers, green energy storage and industrial devices. Vanguard, a contract chipmaker focused on making power management chips and driver ICs for displays, is to acquire a 13 percent stake in Episil for NT$2.48 billion (US$77.1 million).
RSS