TECHNOLOGY
Hon Hai incentive advances
The Wisconsin Assembly on Thursday sent a US$3 billion incentive package for Hon Hai Precision Industry Co (鴻海精密) — known as Foxconn Technology Group (富士康) outside Taiwan — to Wisconsin Governor Scott Walker, signing off on a deal to lure the electronics giant to the state with the biggest subsidy to a foreign company in US history. The bill, approved on a bipartisan 64-31 vote, would make US$2.85 billion available to Hon Hai in cash payments if it invests US$10 billion and hires 13,000 workers. The Wisconsin State Senate approved the proposal on Tuesday.
TECHNOLOGY
Women sue Google
Three female former employees of Alphabet Inc’s Google on Thursday filed a lawsuit accusing the tech company of discriminating against women in pay and promotions. The proposed class-action lawsuit, filed in California state court in San Francisco, came as Google faces an investigation by the US Department of Labor into sex bias in pay practices. The plaintiffs say Google pays women in California less than men who perform similar work and assigns female workers jobs that are less likely to lead to promotions. Google denied the claims.
BANKING
Credit Agricole eyes Asia
Credit Agricole SA, France’s second-largest bank, would consider expanding its presence in Asia, where there is “huge potential” for growth, deputy chief executive officer Xavier Musca said. The lender has opened a representative office in Indonesia and is increasing its wealth-management footprint through its unit Amundi SA’s purchase of Pioneer Investments, Musca said in a Bloomberg Television interview from Singapore. There is “genuine interest” in Asia for opportunities that European banks can offer, Musca said.
INSURANCE
Axa mulls consolidation
French insurer Axa SA is reviewing options for its European asset management unit amid consolidation in the sector, people familiar with the matter said. Axa is considering a merger or joint venture for the business, the people said. Potential partners could include Natixis SA, the people said. No final decisions have been made and Axa might choose to retain the unit as is, they said. Representatives for Axa and Natixis declined to comment.
FASHION
H&M Q3 turnover capped
Fashion group H&M yesterday said that large markdowns capped its third-quarter turnover at 5 percent, but added that autumn sales had started well. The world’s second-largest clothing retailer reported net sales of 51.2 billion kronor (US$6.4 billion). Local-currency growth was 4 percent, just below forecast. The company said sales in the quarter were affected by a significantly larger summer sale this year than in the corresponding quarter last year.
ECONOMY
TSF rises in China
Total social financing (TSF), a broad measure of credit and liquidity in the economy, last month rose to 1.48 trillion yuan (US$226.02 billion) from 1.22 trillion yuan in July, data from the People’s Bank of China showed yesterday. TSF includes off-balance sheet forms of financing that exist outside the conventional bank lending system, such as initial public offerings, loans from trust companies and bond sales. It can also hints at trends in China’s vast shadow-banking sector.
ISSUES: Gogoro has been struggling with ballooning losses and was recently embroiled in alleged subsidy fraud, using Chinese-made components instead of locally made parts Gogoro Inc (睿能創意), the nation’s biggest electric scooter maker, yesterday said that its chairman and CEO Horace Luke (陸學森) has resigned amid chronic losses and probes into the company’s alleged involvement in subsidy fraud. The board of directors nominated Reuntex Group (潤泰集團) general counsel Tamon Tseng (曾夢達) as the company’s new chairman, Gogoro said in a statement. Ruentex is Gogoro’s biggest stakeholder. Gogoro Taiwan general manager Henry Chiang (姜家煒) is to serve as acting CEO during the interim period, the statement said. Luke’s departure came as a bombshell yesterday. As a company founder, he has played a key role in pushing for the
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
CROSS-STRAIT TENSIONS: The US company could switch orders from TSMC to alternative suppliers, but that would lower chip quality, CEO Jensen Huang said Nvidia Corp CEO Jensen Huang (黃仁勳), whose products have become the hottest commodity in the technology world, on Wednesday said that the scramble for a limited amount of supply has frustrated some customers and raised tensions. “The demand on it is so great, and everyone wants to be first and everyone wants to be most,” he told the audience at a Goldman Sachs Group Inc technology conference in San Francisco. “We probably have more emotional customers today. Deservedly so. It’s tense. We’re trying to do the best we can.” Huang’s company is experiencing strong demand for its latest generation of chips, called
GLOBAL ECONOMY: Policymakers have a choice of a small 25 basis-point cut or a bold cut of 50 basis points, which would help the labor market, but might reignite inflation The US Federal Reserve is gearing up to announce its first interest rate cut in more than four years on Wednesday, with policymakers expected to debate how big a move to make less than two months before the US presidential election. Senior officials at the US central bank including Fed Chairman Jerome Powell have in recent weeks indicated that a rate cut is coming this month, as inflation eases toward the bank’s long-term target of two percent, and the labor market continues to cool. The Fed, which has a dual mandate from the US Congress to act independently to ensure
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