LABOR
Government sues Palantir
The US Department of Labor has filed a lawsuit accusing a fast-growing Silicon Valley software company of systematically discriminating against Asian job applicants. Palantir Technologies was cofounded by prominent tech financier Peter Thiel, with backing from an investment arm of the CIA, and was recently valued at US$20 billion. The privately held company makes powerful data-analytics software used by US military, intelligence and law enforcement agencies, along with banks, insurance firms and other non-government clients. The unusual lawsuit claims Palantir “routinely eliminated” Asian job candidates during the resume-screening and telephone-interview stages of the firm’s hiring process. The claims are based on a statistical analysis conducted by federal officials responsible for making sure government contractors comply with anti-discrimination rules.
ENERGY
Westar sale approved
Stockholders on Monday approved the US$12.2 billion sale of Topeka-based electric firm Westar Energy to Missouri-based Great Plains Energy, the two firms announced on Monday. Westar is Kansas’ largest electric company, and after the acquisition, Great Plains would serve more than 1.5 million customers in the two states. The two companies said that combining operations would result in US$200 million in annual savings after three years, keeping rates in check. Great Plains said 81 percent of its shareholders participated in the vote, with 95 percent approving the sale. Westar said 63 percent of its shareholders voted, with 96 percent approving it.
BANKING
Bank of America to cut jobs
Bank of America is to lay off 20 senior investment bankers in Asia due to slowing activity in the region, a person familiar with the matter said on Monday. Goldman Sachs is also cutting staff in the Asian region due to a slump in deal-making, according to published reports on Monday. Bank of America employees affected by the layoffs work in Singapore, Japan and Hong Kong, a person familiar with the move said. The plans are still being finalized, including the exact number of workers affected. Bank of America also cut about 150 investment bankers in the region in March. Goldman plans to lay off more than 25 percent of 300 investment bankers in the region, according to a Wall Street Journal report. Goldman staff will be cut in Hong Kong and Singapore, but workers in Japan will be spared, the report said. Officials with Bank of America and Goldman Sachs declined comment.
TECHNOLOGY
Walt Disney eyeing Twitter
Walt Disney Co is working with a financial adviser to evaluate a possible bid for Twitter Inc, according to people familiar with the matter. After receiving interest in discussing a deal, Twitter has started a process to evaluate a potential sale. Salesforce.com Inc is also considering a bid and is working with Bank of America on the process, according to other people, who asked not to be named because the matter is private. Representatives for Twitter and Disney did not respond to requests for comment. Speculation that Twitter will be sold has been gathering steam in recent months, including last week’s news of Salesforce’s interest, given the social-media company’s slumping stock and difficulties in attracting new users and advertising revenue. Disney, the owner of ABC and ESPN, could obtain a new online outlet for entertainment, sports and news. Twitter CEO Jack Dorsey is on the board of Disney.
ADVANCED: Previously, Taiwanese chip companies were restricted from building overseas fabs with technology less than two generations behind domestic factories Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), a major chip supplier to Nvidia Corp, would no longer be restricted from investing in next-generation 2-nanometer chip production in the US, the Ministry of Economic Affairs said yesterday. However, the ministry added that the world’s biggest contract chipmaker would not be making any reckless decisions, given the weight of its up to US$30 billion investment. To safeguard Taiwan’s chip technology advantages, the government has barred local chipmakers from making chips using more advanced technologies at their overseas factories, in China particularly. Chipmakers were previously only allowed to produce chips using less advanced technologies, specifically
The New Taiwan dollar is on the verge of overtaking the yuan as Asia’s best carry-trade target given its lower risk of interest-rate and currency volatility. A strategy of borrowing the New Taiwan dollar to invest in higher-yielding alternatives has generated the second-highest return over the past month among Asian currencies behind the yuan, based on the Sharpe ratio that measures risk-adjusted relative returns. The New Taiwan dollar may soon replace its Chinese peer as the region’s favored carry trade tool, analysts say, citing Beijing’s efforts to support the yuan that can create wild swings in borrowing costs. In contrast,
TARIFF SURGE: The strong performance could be attributed to the growing artificial intelligence device market and mass orders ahead of potential US tariffs, analysts said The combined revenue of companies listed on the Taiwan Stock Exchange and the Taipei Exchange for the whole of last year totaled NT$44.66 trillion (US$1.35 trillion), up 12.8 percent year-on-year and hit a record high, data compiled by investment consulting firm CMoney showed on Saturday. The result came after listed firms reported a 23.92 percent annual increase in combined revenue for last month at NT$4.1 trillion, the second-highest for the month of December on record, and posted a 15.63 percent rise in combined revenue for the December quarter at NT$12.25 billion, the highest quarterly figure ever, the data showed. Analysts attributed the
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) quarterly sales topped estimates, reinforcing investor hopes that the torrid pace of artificial intelligence (AI) hardware spending would extend into this year. The go-to chipmaker for Nvidia Corp and Apple Inc reported a 39 percent rise in December-quarter revenue to NT$868.5 billion (US$26.35 billion), based on calculations from monthly disclosures. That compared with an average estimate of NT$854.7 billion. The strong showing from Taiwan’s largest company bolsters expectations that big tech companies from Alphabet Inc to Microsoft Corp would continue to build and upgrade datacenters at a rapid clip to propel AI development. Growth accelerated for
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