BONDS
Deutsche Bank probed
Deutsche Bank AG is the target of a criminal probe into government bond market manipulation, the German bank and plaintiffs said on Friday. Five former Deutsche Bank top managers are being investigated by a prosecutor in Trani, southern Italy, including its ex-chief executive Josef Ackermann, consumer associations Adusbef and Federconsumatori said after filing their legal complaint. They accuse Deutsche Bank of selling “massive” amounts of Italian government debt between January and June 2011 while publicly stating that the Italian debt situation was “sustainable.”
STOCKS
GE sells Czech bank shares
General Electric Co (GE) raised US$749 million selling shares of its Czech banking unit in the nation’s biggest initial public offering in almost a decade. The US company priced the 51 percent stake in Moneta Money Bank AS, previously known as GE Money Bank AS, at 68 Czech koruna per share, according to an e-mailed statement on Friday. That values the lender at 34.75 billion Czech koruna (US$1.47 billion) and compares with GE’s initial target range of between 68 koruna and 85 koruna. GE is placing the unit’s shares as part of a year-old plan to sell most of its financial assets worldwide and focus on its industrial business.
INVESTMENT
Berkshire net profit up 8%
Warren Buffett’s Berkshire Hathaway Inc on Friday confirmed that its first-quarter net profit rose 8 percent to US$5.59 billion, while operating profit fell 12 percent to US$3.74 billion, below analyst forecasts, as its BNSF railroad unit was hurt by falling oil prices and coal demand. The conglomerate, which operates about 90 businesses, nonetheless said its book value per share, rose to US$157,369 per Class A share as of March 31 from US$155,501 three months earlier, while revenue rose 8 percent from a year earlier to US$52.4 billion.
COMMODITIES
Rio Tinto passes mine hurdle
Mining giant Rio Tinto Ltd on Friday announced the launch of the next stage of a US multibillion-dollar gold and copper mine in Mongolia following delays and political tension over revenue sharing and the foreign role in resource industries. The underground portion of the Oyu Tolgoi mine is to go ahead after Rio Tinto, the Mongolian government and another partner agreed on a US$5.3 billion investment plan, the Anglo-Australian miner said, adding that production should begin in 2020.
AVIATION
Private plane sales drop
Sales of new private aircraft fell 16 percent in the first quarter from a year earlier, as demand weakened for the largest planes. Jet airplane billings were about US$3.53 billion in the first quarter, down from US$4.2 billion a year earlier, the General Aviation Manufacturers Association said. That was the biggest decline in almost five years. However, shipments of medium-sized jets increased to 76 from 69, a sign that smaller US companies are still returning to the market as customers. Excluding Dassault Aviation SA, which does not report first-quarter shipments, 122 total business jets were delivered in the first three months of the year, down from 128.
Contract chipmaker United Microelectronics Corp (UMC, 聯電) yesterday said it has signed a memorandum of understanding (MOU) with Polar Semiconductor LLC to collaborate on the production of 8-inch wafers in the US. The collaboration aims to strengthen 8-inch wafer manufacturing in the US amid Washington’s efforts to increase onshore manufacturing of semiconductors, contribute to supply chain resilience against shifting geopolitical dynamics, and ensure a secure domestic supply of power semiconductors critical to automotive, electric grids, robotic manufacturing and data centers, the companies said in a joint statement. Under the MOU, Polar and UMC will identify devices for Polar to manufacture at
TECH TITANS: Amazon’s latest chip joins Google in competing for the 90 percent market share held by Nvidia, which claims it is ‘a generation ahead of the industry’ Amazon Web Services (AWS) on Tuesday launched its in-house-built Trainium3 artificial intelligence (AI) chip, marking a significant push to compete with Nvidia Corp in the lucrative market for AI computing power. The move intensifies competition in the AI chip market, where Nvidia dominates with an estimated 80 to 90 percent market share for products used in training large language models that power the likes of ChatGPT. Google last week caused tremors in the industry when it was reported that Facebook-parent Meta Platforms Inc would employ Google AI chips in data centers, signaling new competition for Nvidia. This followed the release last month of
INSULATED: The company said it is less exposed to global complications, as it has built a strong footprint worldwide, and has multiple sources of rare earths and raw minerals Merck Group yesterday said it would ramp up production next year at its new flagship facility in Kaohsiung’s Lujhu District (路竹) to satisfy growing demand for advanced semiconductor materials and specialty gases, and to address supply resilience issues amid mounting geopolitical risks. Merck made the remarks during a news conference before the inauguration of its 500 million euros (US$582.1 million) facility, which is also to supply other markets in the Asia-Pacific region, it said. Merck executive board deputy chair and electronics CEO Kai Beckmann told reporters the company adopted a “local-for-local” strategy about seven years ago to address the cycle time of
Two companies wholly owned by the daughter of the founder of Hon Hai Precision Industry Co (鴻海精密) on Monday reported to the Taiwan Stock Exchange that they would dispose of all of the Hon Hai shares they hold. In filings with the exchange, Hong Wei Investment Co (鋐維) said it would sell the 2.771 million Hon Hai shares it holds and Frontier Investment Corp (承鋒投資) said it would sell its 2.409 million Hon Hai shares from tomorrow until Jan. 3 next year. The two companies are wholly owned and chaired by Shirley Gou (郭曉玲), the eldest daughter of Hon Hai founder Terry
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