ENERGY
Oil prices might pick up
International Energy Agency (IEA) chief Fatih Birol yesterday said that oil prices might have bottomed out, providing that the health of the global economy does not pose a concern. Oil prices hit this year’s highs on Friday with Brent crude reaching US$48.50 per barrel on optimism that a global oil glut will ease. A decline in non-OPEC production amounting to more than 700,000 barrels per day this year and production outages have driven the rally, Birol said. Asked if oil prices had bottomed out, he said: “It may well be the case, but it will depend on how the global economy looks like. In a normal economic environment, we will see the price direction is rather upwards than downwards. We believe under normal conditions towards the end of this year, second half of this year but latest next year, markets will rebalance.”
ECONOMY
Oil producers’ ratings cut
The credit ratings of Nigeria and Angola, Africa’s two biggest oil producers, were among four countries downgraded by Moody’s Investors Service, citing the negative impact depressed oil prices have had on the governments’ balance sheets, liquidity and creditworthiness. Nigeria and Gabon were cut to “B1” from “Ba3,” as “the prospect of lower-for-longer oil prices” raises liquidity risks and external vulnerability, according to statements released by the ratings firm on Friday. Angola was lowered to “B1” and the Republic of the Congo to “B2” from “B1” on similar concerns about the countries’ high dependence on oil, constraining their financing options, Moody’s said. The moves mark the end of a review Moody’s began on March 4 for possible downgrades of more than 10 oil producing nations, as it assessed the impact of the selloff in oil. Russia and Azerbaijan’s ratings were affirmed while Kazakhstan and Trinidad and Tobago were downgraded to “Baa3.” Decisions are pending for Abu Dhabi, Kuwait, Saudi Arabia, the United Arab Emirates, Bahrain, Qatar and Papua New Guinea.
SYRIA
Poverty rate skyrockets
The number of Syrians living below the poverty line has almost tripled after five years of conflict, according to a report published this week. About 83.4 percent of Syrians live below the poverty line compared with 28 percent in 2010, the report by the UN Economic and Social Commission for Western Asia and the University of St Andrews said. An estimated 13.5 million people in Syria needed humanitarian aid by late last year and more than 4 million of these were in Damascus and Aleppo provinces. “According to one estimate, life expectancy dropped from 70 in 2010 to 55.4 in 2014,” the report said. About half of Syria’s 493 hospitals in 2010 have been seriously damaged in the war, it added.
GERMANY
VW bonus irks minister
Minister of Finance Wolfgang Schaeuble said he did not understand how Volkswagen AG (VW) bosses could defend their bonuses after a huge emissions-rigging scandal plunged the automaker into global turmoil, according to an interview with **Die Welt** published yesterday. The criticism comes after Volkswagen revealed this week that its top executives would be paid a total of 63.2 million euros (US$72 million) for last year despite a massive loss incurred from the cheating controversy. “I can’t understand how you can steer a major DAX [German stock exchange] company into a crisis that threatens its very existence and then defend your own bonuses in a public debate," Schaeuble told the German daily. "It shows that something is not right," he added. After widespread outcry, VW’s supervisory board announced that it would freeze 30 percent of the executive board members’ annual bonuses for last year for possible payout three years later, depending on the performance of the group’s shares.
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
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
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
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors
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