UNITED KINGDOM
Growth slower than expected
Economic growth slowed by more than expected in the first quarter, revised official data showed on Thursday ahead of the nation’s general election. Two weeks before Britons head to the polls in what is widely seen as a vote on British Prime Minister Theresa May’s Brexit strategy, the Office for National Statistics said GDP growth stood at 0.2 percent in the first three months of the year compared with the final quarter of last year. That was the weakest quarter-on-quarter growth in a year. An initial estimate provided by the office last month had put first-quarter GDP output growth at 0.3 percent. Output in the fourth quarter of last year had stood at 0.7 percent.
JAPAN
Prices rise on energy costs
The core consumer price index last month climbed to a two-year high of 0.3 percent, as costs for energy rose. Economists said the increase reported yesterday was not likely to persist and that prices for imported consumer goods actually fell. Inflation has been positive in recent months, but well below the government’s 2 percent target. Core inflation excluding volatile food prices rose 0.3 percent from a year earlier, just above the rate in March. Inflation excluding fresh food and energy was up 0.1 percent, while energy costs rose by 4.5 percent.
COMMODITIES
Noble’s rating cut again
Noble Group Ltd (來寶集團) received a fresh blow as Fitch Ratings Ltd cut the embattled commodity trader’s rating for a second time in the space of 10 days, flagging concern over its ability to address about US$2 billion of debt that matures over the next 12 months. The Hong Kong-based company is in talks with banks to renew a borrowing base facility expiring next month and Fitch said a successful rollover of a large part of that is “critical” for its liquidity. Fitch expects the banks to do so, but on less favorable terms.
RETAIL
Costco shares rally
Costco Wholesale Corp shares rose in after-hours trading after the warehouse club company reported earnings that topped Wall Street expectations. The Issaquah, Washington-based company said on Thursday that net income in its most recent quarter came to US$700 million, or US$1.59 per share, up from US$545 million, or US$1.24 per share, in the same period last year. Stripping out one-time items, earnings came to US$1.40 per share in the quarter that ended on May 7. Revenue rose 7.8 percent to US$28.86 billion, Costco said. Its shares rose 1 percent to close at US$174.73 and added an additional 1.8 percent after the market closed.
TELECOMS
Fund to invest in start-ups
Saudi Arabia’s largest telecom said on Thursday it is to set up a US$500 million venture capital fund to invest in start-up companies. As part of a wide-ranging economic diversification plan launched last year, Saudi Arabia is trying to promote small and medium-sized enterprises and expand its investment and industrial base, as well as develop the digital infrastructure to support such growth. “The fund will invest globally in promising technologies and digital sectors, especially in areas where the company can tap into its assets and infrastructure, and help it enable its investments to grow,” Saudi Telecom Co chief executive officer Khaled al-Biyari said.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday said its materials management head, Vanessa Lee (李文如), had tendered her resignation for personal reasons. The personnel adjustment takes effect tomorrow, TSMC said in a statement. The latest development came one month after Lee reportedly took leave from the middle of last month. Cliff Hou (侯永清), senior vice president and deputy cochief operating officer, is to concurrently take on the role of head of the materials management division, which has been under his supervision, TSMC said. Lee, who joined TSMC in 2022, was appointed senior director of materials management and
Gudeng Precision Industrial Co (家登精密), the sole extreme ultraviolet pod supplier to Taiwan Semiconductor Manufacturing Co (台積電), yesterday said it has trimmed its revenue growth target for this year as US tariffs are likely to depress customer demand and weigh on the whole supply chain. Gudeng’s remarks came after the US on Monday notified 14 countries, including Japan and South Korea, of new tariff rates that are set to take effect on Aug. 1. Taiwan is still negotiating for a rate lower than the 32 percent “reciprocal” tariffs announced by the US in April, which it later postponed to today. The
MAJOR CONTRIBUTOR: Revenue from AI servers made up more than 50 percent of Wistron’s total server revenue in the second quarter, the company said Wistron Corp (緯創) on Tuesday reported a 135.6 percent year-on-year surge in revenue for last month, driven by strong demand for artificial intelligence (AI) servers, with the momentum expected to extend into the third quarter. Revenue last month reached NT$209.18 billion (US$7.2 billion), a record high for June, bringing second-quarter revenue to NT$551.29 billion, a 129.47 percent annual increase, the company said. Revenue in the first half of the year totaled NT$897.77 billion, up 87.36 percent from a year earlier and also a record high for the period, it said. The company remains cautiously optimistic about AI server shipments in the third quarter,
Nvidia Corp CEO Jensen Huang (黃仁勳) on Thursday met with US President Donald Trump at the White House, days before a planned trip to China by the head of the world’s most valuable chipmaker, people familiar with the matter said. Details of what the two men discussed were not immediately available, and the people familiar with the meeting declined to elaborate on the agenda. Spokespeople for the White House had no immediate comment. Nvidia declined to comment. Nvidia’s CEO has been vocal about the need for US companies to access the world’s largest semiconductor market and is a frequent visitor to China.
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