INVESTMENT
Manila plans bond offering
The Philippines may offer about US$750 million of global bonds next year while seeking to keep domestic funding elevated. Manila plans to borrow 747 billion pesos (US$16.6 billion) next year, and will probably sell 33 billion pesos of global bonds, Philippines Treasurer Roberto Tan on Saturday said in an interview with Bloomberg at the Clark economic zone in Pampanga, a province north of Manila. About 643 billion pesos, or 86 percent, will be raised locally as the market remains very liquid, Tan said.
The nation has increased reliance on the local market to fund its budget as money supply almost doubled in the five years under Philippine President Benigno Aquino III. A steady flow of remittance by overseas workers and revenue from the outsourcing industry boosted liquidity to 7.6 trillion pesos in May, compared with about 4 trillion pesos at the end of 2009.
ECONOMY
Saudi PMI fell last month
An indicator of growth in Saudi Arabia’s non-oil industries last month fell to the lowest level in six years as the biggest Arab economy loses momentum. The Emirates NBD Purchasing Managers’ Index (PMI) dropped to 56.1 from 57 in May, driven by a weak increase in new orders and slower output growth, the Dubai-based bank said in a report released yesterday. The same measure for the United Arab Emirates fell to 54.7 last month, the lowest in 22 months. Saudi Arabia’s PMI index has dropped in four of the first six months this year as the kingdom grapples with the plunge in crude oil prices.
GREEN ENERGY
Nice Grid shows weaknesses
A major pilot project by Europe’s largest power network operator to integrate power from rooftop solar panels into the grid has shown that battery storage of renewable energy is not yet economically viable in Europe. The conclusion is a sobering one for proponents of sun and wind energy because as more of it comes on tap, better storage will be needed to keep the power produced when it is sunny and windy so it can be used at other times. The 30 million euro (US$33.34 million) “Nice Grid” pilot is one of the biggest in a EU-backed “Grid4EU” scheme in which five national power companies test the power grids of tomorrow. EDF’s power grid unit ERDF has connected compact batteries to solar panels on rooftops in the village of Carros on the outskirts of Nice, France, and utility-size batteries to its local power distribution network. The technology works perfectly, but the pilot has shown it is still too expensive for wider rollout.
UNITED KINGDOM
Liquid futures on tap
There is no shortage of liquidity at London’s first stock exchange-themed bar, where beer prices fluctuate with demand and the occasional market crash can send prices tumbling. With its sterile white walls, piercing ceiling lights and flatscreen TVs flashing green and red, Reserve Bar Stock Exchange in the “Square Mile” financial district has the feel of a trading room. To capture the best deals, customers use an app to monitor prices that constantly shift based on how much customers are buying. The bar’s signature cocktail Black Tuesday is a nod to one of the most famous crashes on Wall Street in 1929. With the first full-week of business under his belt, owner Alan Grant plans to launch a futures market where customers can lock in bargain prices up to three months in advance and an “insider trading” Twitter account that will give customers hints about when crashes may occur.
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Taiwan will prioritize the development of silicon photonics by taking advantage of its strength in the semiconductor industry to build another shield to protect the local economy, National Development Council (NDC) Minister Paul Liu (劉鏡清) said yesterday. Speaking at a meeting of the legislature’s Economics Committee, Liu said Taiwan already has the artificial intelligence (AI) industry as a shield, after the semiconductor industry, to safeguard the country, and is looking at new unique fields to build more economic shields. While Taiwan will further strengthen its existing shields, over the longer term, the country is determined to focus on such potential segments as
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
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