INTEREST RATES
Thailand hikes key rate
Thailand raised interest rates for the seventh straight meeting as Thai Prime Minister Yingluck Shinawatra’s plans to boost wages and rice prices heighten inflation risks even as growth eases. The Bank of Thailand increased its benchmark one-day bond repurchase rate by a quarter of a percentage point to 3.5 percent, it said in Bangkok yesterday. The move was predicted by 16 out of 20 economists surveyed by Bloomberg News, with the rest expecting no change. Thailand has boosted borrowing costs nine times since the start of July last year, the longest tightening cycle since the 23 months ended June 2006.
ECONOMY
German confidence down
German business confidence deteriorated sharply this month, the Ifo economic research institute said yesterday. The monthly Ifo business climate index plunged to 108.7 points from 112.9 points last month, highlighting a sharp slowdown seen also in other recent data. The result was well below expectations of a decline to 111 points, according to a poll of economists by Dow Jones Newswires, and was the biggest drop since the index lost 4.7 points in July 2008. It was also the lowest level since June last year, when it stood at 106.5 points.
COMMODITIES
Glencore bids for Minara
Swiss-based commodities giant Glencore yesterday announced a takeover bid for Australian nickel miner Minara, its first major play since listing in London and Hong Kong. The off-market cash bid for the 27 percent share of Minara that Glencore does not already own values the cobalt and nickel firm at A$1.02 billion (US$1.07 billion), or A$0.87 a share. Glencore said the offer was a “substantial premium to Minara’s recent trading price and an attractive exit opportunity” for shareholders after the miner reported a 31.2 percent drop in half-year profit to A$27.3 million.
AIRLINES
Qantas’ profit doubles
Qantas Airways Ltd yesterday reported that annual net profit more than doubled to A$250 million, but warned that the general operating environment was challenging and extremely volatile. The Australian flagship carrier’s result for the 12 months through June compares with A$112 million in the previous year. It was also below the market consensus of A$322 million, according to a median of four analysts’ estimates published by Australian Associated Press. Qantas chief executive Alan Joyce said in a statement that the “result reflects the strength of the Qantas Group’s portfolio and is our best performance since the global financial crisis.”
BEVERAGES
Heineken’s profit drops
Heineken NV, Europe’s largest seller of beer, said first-half earnings were down from the same period a year ago, when it booked a one-time gain, and that it expects flat full-year earnings. Net profit in the first half of this year was 605 million euros (US$872 million), down from 700 million euros in the same period a year ago. Sales rose 11 percent to 8.36 billion euros, mostly due to the acquisition of brands, including Dos Equis and Tecate. Sales rose 3.3 percent, it said. The family-controlled company said commodity costs, high unemployment and weak consumer confidence would remain a drag on its business in Europe and the US, offset by growth in emerging markets.
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
‘LEGACY CHIPS’: Chinese companies have dramatically increased mature chip production capacity, but the West’s drive for secure supply chains offers a lifeline for Taiwan When Powerchip Technology Corp (力晶科技) entered a deal with the eastern Chinese city of Hefei in 2015 to set up a new chip foundry, it hoped the move would help provide better access to the promising Chinese market. However, nine years later, that Chinese foundry, Nexchip Semiconductor Corp (合晶集成), has become one of its biggest rivals in the legacy chip space, leveraging steep discounts after Beijing’s localization call forced Powerchip to give up the once-lucrative business making integrated circuits for Chinese flat panels. Nexchip is among Chinese foundries quickly winning market share in the crucial US$56.3 billion industry of so-called legacy
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