SOUTH KOREA
EU crisis slows economy
The economy grew at a slower pace than initially estimated in the June quarter, data showed yesterday, increasing pressure on the central bank to cut interest rates again. With the deepening eurozone debt crisis hitting exports at a time of cooling consumption, the bank revised its 0.4 percent growth figure for the second quarter down to 0.3 percent from the January to March period. The growth rate was one-third of the 0.9 percent posted in the first quarter and marked the slowest increase in GDP since a 0.3 percent expansion in the fourth quarter of last year. On an annual basis, GDP grew 2.3 percent from the second quarter last year.
FRANCE
Unemployment rising
Unemployment climbed to 9.7 percent of the workforce in the second quarter of this year, an increase of 0.1 percent from the first three months, official data showed yesterday. When data for the country’s overseas territories was included, the second-quarter rate came to 10.2 percent, national statistics office Insee said, a level last seen in 1999. A total of 2.8 million people were registered as looking for work in the eurozone’s second-biggest economy.
SWEDEN
Riksbanks cuts key rate
The central bank has cut its key interest rate by one-quarter of a percentage point to 1.25 percent, saying economic growth will slow due to the downturn in the eurozone. The Riksbank said yesterday that weak demand from the 17-country eurozone would “dampen” national exports and hold back the economy, which it said had been “unexpectedly resilient” this year. The economy grew 2.2 percent in the second quarter from a year earlier.
FINANCE
IMF urges Irish investment
The IMF urged the EU on Wednesday to allow its stability fund to invest in Irish banks as it freed up fresh funds for the country’s restructuring program, after the fund released US$1.15 billion of its bailout lending to Ireland on Wednesday. IMF deputy managing director David Lipton encouraged the move, floated two months ago, to have the European Stability Mechanism invest directly in key Irish banks to alleviate the pressure on the Irish government’s finances.
ELECTRONICS
Samsung monopoly probed
Samsung Electronics Co is under investigation by South Korea’s fair trade watchdog over whether it is abusing its dominant position in the wireless market to disadvantage Apple Inc. The Fair Trade Commission opened the probe in March into whether Samsung is using its monopolistic power to negotiate higher license fees from Apple. In January, Europe’s antitrust watchdog launched a similar investigation into Samsung over whether it is fairly licensing its patented wireless technology to other mobile phone makers.
AVIATION
Qantas,Emirates ink deal
Qantas Airways says it has signed a 10-year partnership deal with rival Emirates Airlines. The move is a bid by the Australian airline to boost its struggling international business. Qantas said yesterday that it will move its hub for European flights from Singapore to Dubai, coordinate with Emirates on ticket pricing and scheduling and benefit-sharing starting in April next year. The alliance is subject to regulatory approval. Qantas said it will end its 17-year alliance with International Airlines Group’s wholly-owned subsidiary British Airways next year on March 31.
The Fair Trade Commission’s (FTC) ongoing review of Grab Holdings Ltd’s US$600 million acquisition of Foodpanda Taiwan’s operations, announced on March 23, has taken on fresh urgency as industry experts warn that the transaction could embed significant Chinese cybersecurity vulnerabilities into Taiwan’s digital infrastructure through Grab’s deep ties to autonomous-driving firm WeRide (文遠知行). Less than 16 months after the FTC blocked Uber Eats’ direct attempt to acquire Foodpanda Taiwan — citing potential combined market shares of 80 to 90 percent — the emergence of Grab as the buyer has prompted questions about whether the same competitive harm is simply being rerouted
POWER BUILDUP: Powered by Nvidia’s B200 Blackwell chips, the data center would support MediaTek’s computing power demand and business growth, the company said Smartphone chip designer MediaTek Inc (聯發科) yesterday launched a new artificial intelligence (AI) data center with a maximum capacity of 45 megawatts to meet its rising demand for computing power required to develop new advanced chips for AI applications. The company has completed the first-phase computing power buildup at the data center in Miaoli County’s Tongluo Township (銅鑼), providing 15 megawatts of capacity to support its research and development (R&D) capabilities, despite an industrywide shortage of key components, MediaTek said. Supply constraints have plagued a wide range of key components, including memory chips, solid-state drives, power supply units and central
IMAGE SENSORS: The Japanese company would be the controlling shareholder of the venture, with development and production lines to be set up in Kumamoto Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it has signed a non-binding memorandum of understanding (MOU) with Sony Semiconductor Solutions Corp to create a joint venture to develop and produce next-generation images sensors. The partnership seeks to explore and address emerging opportunities in physical artificial intelligence (AI) applications, such as automotive and robotics, paving the way for innovations and expanded technological advancements, TSMC said in a statement. Sony would be the majority and controlling shareholder of the joint venture, the statement said, adding that the company would set up development and production lines in its newly constructed fab in Kumamoto Prefecture’s
The nation’s foreign exchange reserves climbed back above US$600 billion at the end of last month, as investment gains, currency valuation effects and renewed foreign inflows offset volatility seen earlier in the month, the central bank said yesterday. Reserves stood at US$602.49 billion, up US$5.6 billion from the previous month, the central bank said. The rebound reflected returns on reserve assets, fluctuations in major currencies against the US dollar and the central bank’s market operations aimed at maintaining orderly trading conditions, Department of Foreign Exchange Director-General Eugene Tsai (蔡炯民) said. Financial markets were volatile early last month, with foreign investors recording net purchases
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