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.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Chizuko Kimura has become the first female sushi chef in the world to win a Michelin star, fulfilling a promise she made to her dying husband to continue his legacy. The 54-year-old Japanese chef regained the Michelin star her late husband, Shunei Kimura, won three years ago for their Sushi Shunei restaurant in Paris. For Shunei Kimura, the star was a dream come true. However, the joy was short-lived. He died from cancer just three months later in June 2022. He was 65. The following year, the restaurant in the heart of Montmartre lost its star rating. Chizuko Kimura insisted that the new star is still down
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors