JAPAN
Economic assessment raised
The government raised its assessment of the economy for the first time in nine months as the recovery from last year’s earthquake and tsunami disaster gains momentum. The Cabinet Office said in a report yesterday that reconstruction, rising consumer spending and exports were lifting its economy to a moderate recovery. It warned about uncertainties in the global economy, such as slowing growth in China and weak recoveries in Europe and the US. The report said corporate spending plunged after the earthquake last year, but the slide was now ending.
FINANCE
Banks must raise US$566bn
Fitch Ratings said on Thursday that the world’s 29 biggest banks together might have to raise US$566 billion by the end of 2018 to meet new international requirements for holding cushions against risk. In the report, Fitch said that having to raise that much capital could crimp the banks’ ability to increase dividends or buy back their own shares. The so-called Basel III rules for banks to increase capital reserves are designed to prevent another global financial crisis. The 29 banks, in 12 countries, were designated “global systemically important financial institutions” in November last year by the Financial Stability Board, an international regulators’ group. That means they are deemed so big and connected to other firms that a failure of one could bring down the financial system. They have a total US$47 trillion in assets, according to Fitch.
PHARMACEUTICALS
GSK persists with HGS bid
GlaxoSmithKline (GSK) said it was persisting with its hostile bid to take over US company Human Genome Sciences (HGS) despite the target’s new “poison pill” defense. In a statement issued after the market closed on Thursday, GSK said it believed its US$13 per share offer represents full value for HGS, its partner in developing new drug treatments. Rockville, Maryland-based HGS on Thursday announced its defensive move, which will dilute holdings if anyone attempts to acquire 15 percent or more of its stock without board approval. GSK’s offer closes on June 7.
FINANCE
LSE annual profits surge
London Stock Exchange Group (LSE) said yesterday that annual net profits surged, as the group was boosted by rising revenues and a string of acquisitions, despite the uncertain economic backdrop. Earnings after taxation rocketed to ￡522 million (US$823 million) in the group’s financial year to the end of March, compared with ￡151.6 million last time around, the LSE said in a results statement. Total revenues climbed 10 percent to ￡679.89 million, added the group, which operates the London Stock Exchange and Italy’s Borsa Italiana. It also hiked the annual shareholder dividend by 6 percent to ￡0.283 per share.
RETAIL
Wal-Mart beats expectations
Wal-Mart Stores Inc’s profit and sales surpassed expectations as more people shopped at its US stores and spent more, pushing shares up more than 4 percent despite probes into possible bribery. The first-quarter results, including a 10.1 percent increase in profit, showed that Wal-Mart’s US recovery was on track and efforts were progressing to cut costs and lower prices in markets such as China. Wal-Mart earned US$3.74 billion, or US$1.09 per share, up from US$3.40 billion or US$0.97 a share a year ago. Sales rose 8.6 percent to US$112.27 billion, ahead of analysts’ forecast of US$110.54 billion.
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
ADVERSARIES: The new list includes 11 entities in China and one in Taiwan, which is a local branch of Chinese cloud computing firm Inspur Group The US added dozens of entities to a trade blacklist on Tuesday, the US Department of Commerce said, in part to disrupt Beijing’s artificial intelligence (AI) and advanced computing capabilities. The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the commerce department citing their “activities contrary to US national security and foreign policy.” Those added to the “entity list” are restricted from obtaining US items and technologies without government authorization. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” US Secretary of Commerce Howard Lutnick said. The entities
Minister of Finance Chuang Tsui-yun (莊翠雲) yesterday told lawmakers that she “would not speculate,” but a “response plan” has been prepared in case Taiwan is targeted by US President Donald Trump’s reciprocal tariffs, which are to be announced on Wednesday next week. The Trump administration, including US Secretary of the Treasury Scott Bessent, has said that much of the proposed reciprocal tariffs would focus on the 15 countries that have the highest trade surpluses with the US. Bessent has referred to those countries as the “dirty 15,” but has not named them. Last year, Taiwan’s US$73.9 billion trade surplus with the US
Prices of gasoline and diesel products at domestic gas stations are to fall NT$0.2 and NT$0.1 per liter respectively this week, even though international crude oil prices rose last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices continued rising last week, as the US Energy Information Administration reported a larger-than-expected drop in US commercial crude oil inventories, CPC said in a statement. Based on the company’s floating oil price formula, the cost of crude oil rose 2.38 percent last week from a week earlier, it said. News that US President Donald Trump plans a “secondary
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