SINGAPORE
Economy shrinking
The nation’s economy shrank in the second quarter of the year, official data showed yesterday, as slowing demand from key export markets China and Europe hit manufacturing. The 4.6 percent quarter-on-quarter contraction in the second quarter reversed a growth rate of 4.2 percent in the previous three months, according to advance estimates from the trade ministry based largely on two months’ data. The figures showed the economy expanded 1.7 percent year-on-year in the second quarter.
CHINA
Bank lending increases
Bank lending rose last month and broader money supply also increased, the central bank said yesterday, as monetary easing measures to boost the world’s second-largest economy kicked in. Domestic banks extended new loans of 1.27 trillion yuan (US$204.5 billion), up from 900.8 billion yuan in May, the People’s Bank of China said in a statement. Total social financing — a broader measure of credit in the economy — reached 1.86 trillion yuan last month, it said, up from 1.22 trillion yuan in May.
INDIA
Inflation outlook clouded
Wholesale prices fell more than estimated, in contrast with consumer-price gains, clouding the inflation outlook for central bank Governor Raghuram Rajan before an Aug. 4 policy review. Wholesale prices fell 2.4 percent last month from a year earlier, after a 2.36 percent decline in May, the Commerce Ministry said in a statement yesterday. Food prices rose 2.88 percent last month from a year earlier, the data showed. Manufactured product prices eased 0.77 percent, while fuel and power prices dropped 10 percent.
BEVERAGES
Starbucks eyes South Africa
Starbucks Corp is jumping into the surging coffee market in South Africa, where the number of cafes has expanded rapidly in recent years. The company said its first store would open in Johannesburg by the middle of next year through a deal with Taste Holdings Ltd, which licenses global brands in the region. Starbucks and Taste have not disclosed the financial terms of their deal, but the companies said their partnership would eventually lead to additional Starbucks stores in South Africa.
AUTOMAKERS
BMW hit by slowing demand
BMW AG’s China joint venture partner said it expects first-half net income to fall about 40 percent as demand for premium cars slows in the world’s largest automobile market. Brilliance China Automotive Holdings Ltd (華晨中國汽車控股) yesterday warned about higher expenses in a stock exchange statement. The profit warning is the latest sign that demand in China for luxury cars is declining amid a moderation in economic growth and volatility on the stock market.
INTERNET
Jet.com ready to launch
Jet.com, a well-funded US start-up which aims to shake up online retailing with new ways to cut prices, is set for launch next week, chief executive Marc Lore told the Fortune Brainstorm Tech conference in Aspen, Colorado, on Monday. The new online site is to have at least 10 million products in a variety of categories, Lore said. He dismissed the notion that it is taking on colossus Amazon.com Inc, saying that there is room for “multiple players,” but that he sees Jet as an innovator in pricing.
SEMICONDUCTORS: The German laser and plasma generator company will expand its local services as its specialized offerings support Taiwan’s semiconductor industries Trumpf SE + Co KG, a global leader in supplying laser technology and plasma generators used in chip production, is expanding its investments in Taiwan in an effort to deeply integrate into the global semiconductor supply chain in the pursuit of growth. The company, headquartered in Ditzingen, Germany, has invested significantly in a newly inaugurated regional technical center for plasma generators in Taoyuan, its latest expansion in Taiwan after being engaged in various industries for more than 25 years. The center, the first of its kind Trumpf built outside Germany, aims to serve customers from Taiwan, Japan, Southeast Asia and South Korea,
Gasoline and diesel prices at domestic fuel stations are to fall NT$0.2 per liter this week, down for a second consecutive week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) announced yesterday. Effective today, gasoline prices at CPC and Formosa stations are to drop to NT$26.4, NT$27.9 and NT$29.9 per liter for 92, 95 and 98-octane unleaded gasoline respectively, the companies said in separate statements. The price of premium diesel is to fall to NT$24.8 per liter at CPC stations and NT$24.6 at Formosa pumps, they said. The price adjustments came even as international crude oil prices rose last week, as traders
POWERING UP: PSUs for AI servers made up about 50% of Delta’s total server PSU revenue during the first three quarters of last year, the company said Power supply and electronic components maker Delta Electronics Inc (台達電) reported record-high revenue of NT$161.61 billion (US$5.11 billion) for last quarter and said it remains positive about this quarter. Last quarter’s figure was up 7.6 percent from the previous quarter and 41.51 percent higher than a year earlier, and largely in line with Yuanta Securities Investment Consulting Co’s (元大投顧) forecast of NT$160 billion. Delta’s annual revenue last year rose 31.76 percent year-on-year to NT$554.89 billion, also a record high for the company. Its strong performance reflected continued demand for high-performance power solutions and advanced liquid-cooling products used in artificial intelligence (AI) data centers,
SIZE MATTERS: TSMC started phasing out 8-inch wafer production last year, while Samsung is more aggressively retiring 8-inch capacity, TrendForce said Chipmakers are expected to raise prices of 8-inch wafers by up to 20 percent this year on concern over supply constraints as major contract chipmakers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co gradually retire less advanced wafer capacity, TrendForce Corp (集邦科技) said yesterday. It is the first significant across-the-board price hike since a global semiconductor correction in 2023, the Taipei-based market researcher said in a report. Global 8-inch wafer capacity slid 0.3 percent year-on-year last year, although 8-inch wafer prices still hovered at relatively stable levels throughout the year, TrendForce said. The downward trend is expected to continue this year,
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