ECONOMY
Fitch downgrades Ukraine
Fitch Ratings Ltd downgraded Ukraine’s credit rating a notch deeper in junk territory on Friday, citing an increased probability that the conflict-hit country would default. The rating firm lowered Ukraine to “CC” from “CCC,” saying that the new IMF aid program announced on Thursday would be inadequate to meet its financing needs and private debt restructuring looked “increasingly probable.” Ukraine agreed to a US$17.5 billion four-year bailout from the IMF in exchange for undertaking economic reforms.
ENTERTAINMENT
Google, Mattel revive toy
Google Inc and toy giant Mattel Inc said on Friday they were teaming up to revamp the classic View-Master device, injecting it with digital-age virtual reality. The upgraded View-Master — a device unveiled in 1939 to allow people to view slides to simulate a three-dimensional experience — will become “an immersive digital experience for kids,” a statement from the two companies said. The new device will be available later this year at a price of around US$30 for US consumers.
PUERTO RICO
Governor defends proposal
Puerto Rico’s governor is defending his proposal to create a 16 percent value-added tax as pressure builds on the government to fix its finances. Puerto Rican Governor Alejandro Garcia Padilla held a round table discussion on Friday with other officials to stress that the tax is needed to help the US territory emerge from an eight-year recession and pay off US$73 billion in public debt. The meeting was held just hours after Standard & Poor’s lowered its general obligation rating on Puerto Rico, warning it might be harder for the government to honor its debt and fund public services. Garcia dismissed those concerns and said that creating a value-added tax as part of a larger tax reform would generate an estimated US$1.5 billion.
AVIATION
Aer Lingus favors IAG deal
Irish airline Aer Lingus Group PLC has issued a new statement strongly arguing in favor of its acquisition by British Airways PLC parent International Consolidated Airlines Group SA (IAG). IAG officials spent two days in Dublin this week seeking to persuade the Irish government, the airline’s No. 2 shareholder, to part with its 25.1 percent stake in the airline. IAG has stressed it would not proceed with its takeover bid, valuing Aer Lingus at 1.36 billion euros (US$1.55 billion), unless the government agrees to sell. In its statement on Friday, Aer Lingus chairman Colm Barrington said an IAG takeover would allow the airline to grow most strongly on North American routes.
COSMETICS
Avon pulls out of 16 nations
Avon Products Inc said it is ceasing operations in 16 Caribbean nations. A spokeswoman for the world’s biggest direct seller of cosmetics told reporters that the company would no longer accept orders from places including Jamaica, Haiti and the Bahamas. Spokeswoman Lindsay Fox said on Friday that the company would still serve eight islands, including Puerto Rico and the US Virgin Islands. She declined to say how many sales representatives would be affected. Fox said Avon would focus its resources on improving its US business.
The Eurovision Song Contest has seen a surge in punter interest at the bookmakers, becoming a major betting event, experts said ahead of last night’s giant glamfest in Basel. “Eurovision has quietly become one of the biggest betting events of the year,” said Tomi Huttunen, senior manager of the Online Computer Finland (OCS) betting and casino platform. Betting sites have long been used to gauge which way voters might be leaning ahead of the world’s biggest televised live music event. However, bookmakers highlight a huge increase in engagement in recent years — and this year in particular. “We’ve already passed 2023’s total activity and
BIG BUCKS: Chairman Wei is expected to receive NT$34.12 million on a proposed NT$5 cash dividend plan, while the National Development Fund would get NT$8.27 billion Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday announced that its board of directors approved US$15.25 billion in capital appropriations for long-term expansion to meet growing demand. The funds are to be used for installing advanced technology and packaging capacity, expanding mature and specialty technology, and constructing fabs with facility systems, TSMC said in a statement. The board also approved a proposal to distribute a NT$5 cash dividend per share, based on first-quarter earnings per share of NT$13.94, it said. That surpasses the NT$4.50 dividend for the fourth quarter of last year. TSMC has said that while it is eager
Nvidia Corp CEO Jensen Huang (黃仁勳) today announced that his company has selected "Beitou Shilin" in Taipei for its new Taiwan office, called Nvidia Constellation, putting an end to months of speculation. Industry sources have said that the tech giant has been eyeing the Beitou Shilin Science Park as the site of its new overseas headquarters, and speculated that the new headquarters would be built on two plots of land designated as "T17" and "T18," which span 3.89 hectares in the park. "I think it's time for us to reveal one of the largest products we've ever built," Huang said near the
CUSTOMERS’ BURDEN: TSMC already has operations in the US and is a foundry, so any tariff increase would mostly affect US customers, not the company, the minister said Taiwanese manufacturers are “not afraid” of US tariffs, but are concerned about being affected more heavily than regional economic competitors Japan and South Korea, Minister of Economic Affairs J.W. Kuo (郭智輝) said. “Taiwan has many advantages that other countries do not have, the most notable of which is its semiconductor ecosystem,” Kuo said. The US “must rely on Taiwan” to boost its microchip manufacturing capacities, Kuo said in an interview ahead of his one-year anniversary in office tomorrow. Taiwan has submitted a position paper under Section 232 of the US Trade Expansion Act to explain the “complementary relationship” between Taiwan and the US
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