UNITED STATES
Month of robust job creation
The US saw robust job creation again last month, with unemployment falling back to a 16-year low, restoring the economy to the employment level seen before the 2008 crisis. The economy added 209,000 net new positions for the month, well above analyst forecasts, although below the 231,000 increase in June, the Department of Labor reported on Friday. However, average monthly job creation so far this year is 185,000, slightly below the average recorded last year and well below 2015 and 2014. Last month’s gain pushed the unemployment rate back down a tenth of a point to 4.3 percent, the lowest level in 16 years.
CHINA
Former bank head jailed
The nation’s anti-graft watchdog yesterday said the former head of the supervisory board at China Development Bank (中國國家開發銀行), the country’s largest policy lender, has been jailed for 14 years and fined 3.5 million yuan (US$520,020) for receiving bribes. The Central Commission for Discipline Inspection said in a statement on its Web site that Yao Zhongmin (姚中民) accepted bribes amounting to 36.2 million yuan directly or indirectly through his brother between 2002 and 2013.
ISRAEL
S&P raises outlook
Improved economic growth and efforts to rein in spending prompted Standard & Poor’s to raise the outlook on the country’s debt profile, the credit rating firm announced on Friday. While S&P held Israel’s debt rating stable at “A+,” it improved the outlook to “positive” from “stable,” which means it could raise the grade a notch in the next two years, the company said in a statement. The agency praised the government for “measures that restrain future expenditure growth” which in turn “could enable the government to resist ongoing spending pressures.”
TECHNOLOGY
Google works on ‘magazine’
Alphabet Inc’s Google is working with publishers on a news product called Stamp that would serve up articles in a mobile magazine-like design, similar to Snapchat’s Discover service, according to a person familiar with the matter. Stamp evolved from media relationships Google already has for another one of its products, called AMP, which is meant to help load articles faster. The Wall Street Journal reported the talks earlier. “The success of the open source AMP project is down to the constant collaboration with publishers that involves working early on upcoming features,” Google said on Friday in a statement.
INVESTMENT
Berkshire profits fall
Berkshire Hathaway Inc, the conglomerate controlled by billionaire Warren Buffett, said on Friday that its second-quarter profit fell 15 percent as costs rose for its various businesses and it earned less from its investments. The Omaha, Nebraska-based company reported net income of US$4.26 billion, or US$2,592 per Class A share, during the quarter. That is down from the US$5 billion, or US$3,042 per share, a year ago. Operating earnings came to US$2,505 per Class A share, down from US$2,803 a year ago. Revenue rose 6 percent to US$57.52 billion. The company said costs rose at its insurance businesses, railroads and financial products providers.
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday held its first board of directors meeting in the US, at which it did not unveil any new US investments despite mounting tariff threats from US President Donald Trump. Trump has threatened to impose 100 percent tariffs on Taiwan-made chips, prompting market speculation that TSMC might consider boosting its chip capacity in the US or ramping up production of advanced chips such as those using a 2-nanometer technology process at its Arizona fabs ahead of schedule. Speculation also swirled that the chipmaker might consider building its own advanced packaging capacity in the US as part
‘NO DISRUPTION’: A US trade association said that it was ready to work with the US administration to streamline the program’s requirements and achieve shared goals The White House is seeking to renegotiate US CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told reporters. The people, along with a third source, said that the new US administration is reviewing the projects awarded under the 2022 law, meant to boost US domestic semiconductor output with US$39 billion in subsidies. Washington plans to renegotiate some of the deals after assessing and changing current requirements, the sources said. The extent of the possible changes and how they would affect agreements already finalized was not immediately clear. It was not known
US President Donald Trump has threatened to impose up to 100 percent tariffs on Taiwan’s semiconductor exports to the US to encourage chip manufacturers to move their production facilities to the US, but experts are questioning his strategy, warning it could harm industries on both sides. “I’m very confused and surprised that the Trump administration would try and do this,” Bob O’Donnell, chief analyst and founder of TECHnalysis Research in California, said in an interview with the Central News Agency on Wednesday. “It seems to reflect the fact that they don’t understand how the semiconductor industry really works,” O’Donnell said. Economic sanctions would