ECONOMY
Shanghai to allow exchanges
Shanghai will allow exchanges for iron ore, metals and energy in its free-trade zone as China pushes for more influence in pricing of raw materials and developing the yuan as an international currency. Baosteel Group Corp (寶鋼集團) and Shanghai Ganglian E-Commerce Holdings Co (上海鋼聯電子商務), owner of China’s largest steel researcher Mysteel.com, are among eight companies with approval to set up exchanges in the zone, Shanghai Ganglian board secretary Hu Xiaochun (胡曉純) said. Baosteel is working with the Shanghai government and its partners to set up an iron ore exchange in the zone, spokesman Alex He said.
NEW ZEALAND
Interest rates lifted again
The central bank lifted interest rates for the second time in as many months yesterday, saying it was necessary to contain inflation as an economic recovery gains momentum. The Reserve Bank of New Zealand raised the official cash rate 0.25 points to 3 percent in a move that was widely anticipated by market watchers, who predict rates will hit 4.5 percent by the end of next year.
SPAIN
Fast growth rate reported
The economy grew at the fastest pace in six years in the first quarter of this year, the central bank said yesterday in a preliminary estimate. Available data indicated that economic output climbed by 0.4 percent on a quarterly basis in the first quarter, the largest expansion since a decade-long property boom imploded in 2008, the Bank of Spain said.
GERMANY
Confidence rebounds
Business confidence has rebounded after dipping amid fears about the possible economic impact of the crisis in Ukraine. The Ifo institute yesterday said that its closely watched monthly confidence survey increased to 111.2 points this month from 110.7 last month. The rise was prompted by an improvement in companies’ outlook for the next six months.
CUBA
Moody’s cuts credit rating
Moody’s on Wednesday cut the nation’s credit rating by one notch, citing its vulnerability to a shock rise in fuel costs arising from turmoil in supplier Venezuela. Moody’s also cited the risk of a rocky political transition in the Caribbean island in the wake of the Castro regime as it cut the rating to “Caa2” from “Caa1,” well into “speculative” territory for debt.
PHARMACEUTICALS
Novartis posts profit rise
Swiss pharmaceutical company Novartis AG has reported a 24 percent increase in profit for the first quarter, helped by selling parts of its business that were less profitable. The Basel, Switzerland-based company says its net profit rose to nearly US$2.97 billion, up from US$2.42 billion in the period last year, driven by strong sales, key drug approvals and growth in emerging markets.
GAMING
Zynga founder steps down
Online game maker Zynga’s founder, Mark Pincus, is stepping down as chief product officer, less than a year after he was replaced as the company’s CEO, as the company’s sales slide. Zynga said on Wednesday that Pincus will remain chairman of the company he founded in 2007. Including charges connected to job cuts and the closure of some data centers, Zynga said it lost US$61.2 million, or US$0.7 per share, in the first quarter. Revenue continued to decline, dropping 36 percent to US$168 million.
Hon Hai Precision Industry Co (鴻海精密) yesterday said that its research institute has launched its first advanced artificial intelligence (AI) large language model (LLM) using traditional Chinese, with technology assistance from Nvidia Corp. Hon Hai, also known as Foxconn Technology Group (富士康科技集團), said the LLM, FoxBrain, is expected to improve its data analysis capabilities for smart manufacturing, and electric vehicle and smart city development. An LLM is a type of AI trained on vast amounts of text data and uses deep learning techniques, particularly neural networks, to process and generate language. They are essential for building and improving AI-powered servers. Nvidia provided assistance
DOMESTIC SUPPLY: The probe comes as Donald Trump has called for the repeal of the US$52.7 billion CHIPS and Science Act, which the US Congress passed in 2022 The Office of the US Trade Representative is to hold a hearing tomorrow into older Chinese-made “legacy” semiconductors that could heap more US tariffs on chips from China that power everyday goods from cars to washing machines to telecoms equipment. The probe, which began during former US president Joe Biden’s tenure in December last year, aims to protect US and other semiconductor producers from China’s massive state-driven buildup of domestic chip supply. A 50 percent US tariff on Chinese semiconductors began on Jan. 1. Legacy chips use older manufacturing processes introduced more than a decade ago and are often far simpler than
STILL HOPEFUL: Delayed payment of NT$5.35 billion from an Indian server client sent its earnings plunging last year, but the firm expects a gradual pickup ahead Asustek Computer Inc (華碩), the world’s No. 5 PC vendor, yesterday reported an 87 percent slump in net profit for last year, dragged by a massive overdue payment from an Indian cloud service provider. The Indian customer has delayed payment totaling NT$5.35 billion (US$162.7 million), Asustek chief financial officer Nick Wu (吳長榮) told an online earnings conference. Asustek shipped servers to India between April and June last year. The customer told Asustek that it is launching multiple fundraising projects and expected to repay the debt in the short term, Wu said. The Indian customer accounted for less than 10 percent to Asustek’s
Gasoline and diesel prices this week are to decrease NT$0.5 and NT$1 per liter respectively as international crude prices continued to fall last week, CPC Corp, Taiwan (CPC, 台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. Effective today, gasoline prices at CPC and Formosa stations are to decrease to NT$29.2, NT$30.7 and NT$32.7 per liter for 92, 95 and 98-octane unleaded gasoline respectively, while premium diesel is to cost NT$27.9 per liter at CPC stations and NT$27.7 at Formosa pumps, the companies said in separate statements. Global crude oil prices dropped last week after the eight OPEC+ members said they would