Graduate jobless rate rises
South Korea’s unemployment rate rose to a six-year high last month, as more college graduates failed to land jobs amid slowing economic growth. Distortions from the Lunar New Year holiday were also a seasonal factor behind the rise. The seasonally adjusted jobless rate climbed to 4.1 percent last month, the highest since February 2010, Statistics Korea said yesterday. The agency said the youth unemployment rate for those aged 15 to 29 was 12.5 percent, the highest on record, with college graduates rushing to join the workforce after graduation.
Bacardi seeks Cuba reversal
Bacardi on Tuesday said it has asked a US federal judge to reverse a decision granting Cuba US trademark rights for Havana Club rum. Privately held, Bermuda-based Bacardi said it is the sole owner of Havana Club, which it has been selling in the US since the mid-1990s. French spirits and wine company Pernod Ricard sells its Havana Club rum in Cuba and a number of markets, notably Germany, France, Britain and Canada, but not the US.
Boeing shuffles leaders
Boeing Co reorganized leadership in its commercial airplane division as the company cuts costs and slows production of the 747 jumbo jet. Elizabeth Lund, general manager of the 777 program, will also oversee a combined operation for the 747 and 767 aircraft, Ray Conner, head of the commercial unit, said on Tuesday in a memo to employees. The general managers of the 747 and 767 programs are to assume new roles reporting to Lund. Boeing announced in January that it would trim production of the 747 to six aircraft a year starting in September.
Cloud services raise profits
Oracle Corp’s quarterly profit surpassed estimates as customers signed up for more cloud-based services. Profit excluding certain items was US$0.64 a share in the period that ended on Feb. 29, the Redwood City, California-based company said on Tuesday. Revenue including some adjustments fell 3.4 percent to US$9.01 billion during the fiscal third quarter from a year earlier. Sales of key cloud products grew 57 percent to US$583 million, a bright spot compared with sagging revenue in other services, the company said.
Amazon under investigation
Amazon.com Inc is under investigation in Italy for alleged tax evasion, Amazon chief for Italy and Spain Francois Nuyts said in an interview on Tuesday. The Seattle-based online retailer is cooperating with the probe, Nuyts said. “Amazon pays all applicable taxes in every jurisdiction where we operate, including Italy, and we are cooperating fully with the Italian authorities,” Nuyts said when asked about legal and tax issues.
Valeant takes a 50% plunge
Canadian drugmaker Valeant Pharmaceuticals International Inc’s share price plunged nearly 50 percent on Tuesday after it warned it was at risk of a debt default and slashed its earnings forecast. Valeant, already under fire for its pricing and accounting practices, said in a securities filing that bondholders can deliver a notice of default if the drugmaker fails to submit its annual 10-K report to the US Securities and Exchange Commission within 60 days. The 10-K report was due on Tuesday, but a filing within 60 days would “cure the default,” Valeant said.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s