MACROECONOMICS
Fed reports US growth
The US economy continued to expand last month and this month, helped by strength in consumer spending, a US Federal Reserve survey released on Wednesday indicates. All 12 of the Fed’s regions reported growth, with five — New York, Chicago, Minneapolis, Dallas and San Francisco — characterizing growth as “moderate” while the others reported “modest” growth. Boston and Richmond reported that growth came in at a slightly slower pace than the previous reporting period. The Fed’s survey, known as the Beige Book, is set to be used by central bank officials when they next meet on July 29 and July 30 to review interest rate policies.
AUTOMAKERS
New car sales rise in Europe
The number of new cars registered in Europe grew for the 10th consecutive month last month, according to industry data published yesterday, adding to evidence that the embattled sector is recovering. Sales of new cars rose by 4.5 percent last month to 1.2 million, the Association of European Automobile Manufacturers (ACEA) said, as the market continues the battle to shake off a recent slump. However, the number of new cars is still low, with the association saying the figure represented “the second-lowest level reached in the month of June since ACEA began the series last year with the enlarged EU.”
COMMUNICATIONS
KDDI, Sumitomo cooperate
Japanese mobile carrier KDDI Corp said yesterday that it planned to link up with trading house Sumitomo Corp in a deal to invest about US$2 billion to develop wireless networks in Myanmar, as the country opens up after years of military rule. The move would see the Japanese giants pair up for a joint venture with state-owned Myanmar Posts & Telecommunications. The deal is to see an investment of ￥200 billion (US$2.0 billion) over a decade to boost phone networks in a country where only about 10 percent of the population of 65 million have access to mobile phones, KDDI said, which is one of the lowest rates in the world.
RETAIL
First Starbucks in Colombia
US chain Starbucks on Wednesday opened its first branch in Colombia — a world famous coffee exporter — apparently unafraid it would be like selling sand at the beach. To gear up for a soft landing, the US company teamed up with local company Nutresa and picked a location in Bogota’s exclusive Parque de la 93 for upscale appeal. Starbucks “is looking to achieve a leadership position in the [Colombian] domestic market,” a Nutresa statement said. Colombia is the world’s leading exporter of smooth arabica and Starbucks has decided to sell 100 percent Colombian beans in all its Colombian outlets.
INTERNET
EBay forecast falls short
EBay Inc gave a sales outlook for the third quarter that fell short of estimates, as the biggest online marketplace struggles to attract more users after a data breach and changes to Google Inc’s search engine. Revenue in the current period is estimated to be US$4.3 billion to US$4.4 billion, the company said in a statement on Wednesday. Profit before certain items will be US$0.65 to US$0.67 a share. The company said it second-quarter sales rose 13 percent to US$4.37 billion, falling short of the average analyst estimate of US$4.39 billion. Net income climbed 5.6 percent to US$676 million, or US$0.53 a share, from US$640 million, or US$0.49, a year earlier.
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
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