BANKING
UBS doubles net income
UBS Group AG’s net income more than doubled in the third quarter as the Swiss bank booked a tax gain and set aside fewer provisions for legal probes. Net income rose to 2.07 billion Swiss francs (US$2.1 billion) in the three months through September from SF762 million a year ago, UBS said in a statement. The bank pushed next year’s profitability target back a year, citing stricter capital rules at home and changes in the economic outlook and conditions. UBS now wants to achieve 15 percent return on tangible equity by 2017. It said it will beat this year’s target of a 10 percent return and will aim for that next year as well.
AUTOMAKERS
BMW posts profit rise
BMW AG posted a surprise 4.3 percent increase in third-quarter profit as demand for the 2-Series, 4-Series and X5 sport utility vehicle rose. Earnings before interest and taxes increased to 2.35 billion euros (US$2.59 billion) beating expectations for a decline to 2.16 billion euros, according to 13 analyst estimates compiled by Bloomberg. Revenue rose 14 percent to 22.3 billion euros, the Munich-based automaker said yesterday. BMW repeated its forecast of a solid rise in car sales, revenue and Ebit this year. Gains will be held back by “fierce” competition, higher personnel costs, spending on new models and slower growth in China, the company said in the statement.
BANKING
S&P eyes credit grade cuts
JPMorgan Chase & Co, Bank of America Corp and Citigroup Inc are among eight large US banks that may have credit grades cut by Standard & Poor’s on the prospect that the US government is less likely to provide aid in a crisis. The companies — along with Wells Fargo & Co, Goldman Sachs Group Inc, Morgan Stanley, Bank of New York Mellon Corp and State Street Corp — had senior unsecured and non-deferrable subordinated debt ratings placed on negative credit watch, S&P said on Monday. S&P said it expects to resolve the credit reviews by early December.
TECHNOLOGY
Drone deliveries expected
Internet giant Alphabet Inc, the new holding company for Google, expects to begin delivering packages to consumers via drones some time in 2017, the executive in charge of its drone effort said on Monday. David Vos, the leader for Alphabet’s Project Wing, said his company is in talks with the Federal Aviation Administration and other stakeholders about setting up an air traffic control system for drones that would use cellular and Internet technology to coordinate remote-controlled aerial vehicle flights at altitudes under 152m.
MACROECONOMICS
Non-commodity growth dips
A measure of growth in Saudi Arabia’s non-oil private industries dropped to the lowest level in six years in October as the slump in oil prices slowed the biggest Arab economy’s momentum. The Emirates NBD purchasing managers’ index fell to 55.7 from 56.5 in September, the lowest level since the survey began, driven by weaker expansion in new business. The same measure for the United Arab Emirates fell to 54 from 56 in September, the lowest since April 2013, the Dubai-based bank said yesterday. Readings above 50 signal expansion, while those below indicate contraction.
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday held its first board of directors meeting in the US, at which it did not unveil any new US investments despite mounting tariff threats from US President Donald Trump. Trump has threatened to impose 100 percent tariffs on Taiwan-made chips, prompting market speculation that TSMC might consider boosting its chip capacity in the US or ramping up production of advanced chips such as those using a 2-nanometer technology process at its Arizona fabs ahead of schedule. Speculation also swirled that the chipmaker might consider building its own advanced packaging capacity in the US as part
‘NO DISRUPTION’: A US trade association said that it was ready to work with the US administration to streamline the program’s requirements and achieve shared goals The White House is seeking to renegotiate US CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told reporters. The people, along with a third source, said that the new US administration is reviewing the projects awarded under the 2022 law, meant to boost US domestic semiconductor output with US$39 billion in subsidies. Washington plans to renegotiate some of the deals after assessing and changing current requirements, the sources said. The extent of the possible changes and how they would affect agreements already finalized was not immediately clear. It was not known
US President Donald Trump has threatened to impose up to 100 percent tariffs on Taiwan’s semiconductor exports to the US to encourage chip manufacturers to move their production facilities to the US, but experts are questioning his strategy, warning it could harm industries on both sides. “I’m very confused and surprised that the Trump administration would try and do this,” Bob O’Donnell, chief analyst and founder of TECHnalysis Research in California, said in an interview with the Central News Agency on Wednesday. “It seems to reflect the fact that they don’t understand how the semiconductor industry really works,” O’Donnell said. Economic sanctions would