BANKING
Credit Suisse sells debt
Credit Suisse Group AG agreed to sell distressed debt assets for US$1.27 billion to an arm of private-equity firm TPG. The portfolio being sold to TSSP, a credit and special situations business, includes 270 instruments related to about 170 companies globally, Credit Suisse and TSSP said in a statement on Tuesday. The transaction will results in an extra charge of about US$100 million for Credit Suisse, to be reflected in first-quarter results due on Tuesday next week, the statement said. That is in addition to US$99 million of distressed credit writedowns already announced.
EUROZONE
PMI hints at waning growth
A closely monitored survey is pointing to waning growth in the 19-country eurozone at the start of the second quarter of the year. Financial information company Markit yesterday said that its purchasing managers index — a broad gauge of business activity — across the region fell modestly to 53 in April from 53.1 the previous month. Though above the 50 threshold indicating expansion, the reading has fallen from the start of the year. The eurozone is in a “low gear,” Markit says.
INDONESIA
Growth rate slows
The nation’s growth rate was slower than forecast in the first quarter, official data showed yesterday, in a blow to President Joko Widodo’s efforts to boost the economy. The economy grew 4.92 percent year-on-year from January to March, the official statistics agency said. This was slightly below economists’ forecasts and compared to 5.04 percent in the final quarter of last year. The economy grew 4.79 percent last year.
SHIPPING
Maersk Q1 profits plunge
Danish shipping and oil group A.P. Moller-Maersk yesterday said that first-quarter underlying profit plunged to US$224 million from US$1.5 billion a year earlier, with all sectors showing a drop in performance except drilling and tanker shipping services. Hit by low oil prices and freight rates, the world’s largest shipping company said revenue fell almost 20 percent from a year earlier to US$8.5 billion. Chief executive Nils Smedegaard Andersen said that market conditions remained “challenging,” but maintained that the group was continuing to adjust its cost base to the new conditions.
MANUFACTURING
Siemens Q1 net profit drops
Siemens AG, maker of heavy industrial equipment including power stations and trains, saw net profit fall in the most recent quarter due to large one-time gains in the year earlier period. However, the company’s earnings beat analyst estimates and it reported a strong rise in new orders. Net profit fell to 1.5 billion euros (US$1.7 billion) in the January-March quarter from 3.9 billion euros in the same quarter last year. Revenue grew 5 percent to 19.0 billion euros.
BANKING
Societe General profit up
Societe Generale SA reported an unexpected increase in first-quarter profit, boosted by consumer banking, and announced plans to deepen cost cuts at its investment bank. Net income rose to 924 million euros from 868 million euros a year earlier, the Paris-based bank said yesterday. That beat the 765 million euro average estimate of six analysts in a Bloomberg survey. Societe Generale booked a 218 million euro gain after the EU antitrust regulator slashed a 2013 penalty for rigging interest rates.
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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