AVIATION
Rynair applies for UK license
Irish low-cost carrier Ryanair Ltd on Tuesday said that it has applied for a British operating license in case the UK leaves the EU next year without an aviation deal. Other airlines have made similar moves amid concerns that Brexit could severely disrupt air traffic between Britain and continental Europe. “Ryanair today confirmed that a subsidiary company, Ryanair UK, filed an application on Dec. 21 for an Air Operator’s Certificate with the Civil Aviation Authority in the UK,” an airline spokesman said. “This may be required for Ryanair’s three UK domestic routes in the event of a hard Brexit in March 2019.”
INTERNET
Amazon could target Target
Amazon.com Inc is to acquire discounter Target Corp, Loup Venture cofounder Gene Munster wrote in a report highlighting eight predictions for the technology industry this year. “Target is the ideal offline partner for Amazon for two reasons, shared demographic and manageable, but comprehensive store count,” Munster wrote, adding that both companies focus on mothers and families. “Getting the timing on this is difficult, but seeing the value of the combination is easy.” Market share numbers suggest a deal would be approved by regulators and Wal-Mart Stores Inc would still have a larger share than an Amazon-Target combination, Munster said.
APPAREL
Next lifts profit forecast
British apparel and home-furnishings chain Next PLC lifted its profit forecast after a better-than-expected Christmas, in an upbeat signal for UK retailers facing Brexit-related worries and the rise of online shopping. Full-priced sales under the Next brand rose 1.5 percent in the 54 days through Dec. 24, compared with the median analyst estimate for a 0.5 percent decline. The company raised its profit outlook for its current fiscal year, which ends this month, by ￡8 million (US$10.9 million) to a midpoint of ￡725 million. Sales over the Christmas period were boosted by cold, snowy weather, Next said.
INTERNET
Spotify deal challenged
Spotify AB’s US$43 million settlement with songwriters is being challenged in a new lawsuit from a publisher who has said that artists like Tom Petty and Neil Young deserve a lot more — US$1.6 billion more. Wixen Music Publishing Inc claimed in a lawsuit filed on Friday last week that Spotify has infringed upon copyrights to 10,784 songs it administers, and is seeking US$150,000 in statutory damages for each song. Spotify declined to comment. Spotify last year settled a case with songwriters in a bid to end years of fighting ahead of its planned listing on the New York Stock Exchange.
UNITED KINGDOM
Government eyes TPP
The country is interested in joining the Trans-Pacific Partnership (TPP) trade bloc after it leaves the EU, the Financial Times newspaper said. The paper said that the government had started informal talks about joining the bloc in a bid to boost post-Brexit exports. Although the US pulled out of the talks to form the bloc nearly a year ago, other TPP countries have pledged to move forward with plans for a trade group. The TPP has so far involved only countries around the Pacific Rim, such as Japan, Canada and Mexico. However, Minister of State for Trade and Investment Greg Hands said there was no geographical restriction that would prevent Britain’s participation.
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said second-quarter revenue is expected to surpass the first quarter, which rose 30 percent year-on-year to NT$118.92 billion (US$3.71 billion). Revenue this quarter is likely to grow, as US clients have front-loaded orders ahead of US President Donald Trump’s planned tariffs on Taiwanese goods, Delta chairman Ping Cheng (鄭平) said at an earnings conference in Taipei, referring to the 90-day pause in tariff implementation Trump announced on April 9. While situations in the third and fourth quarters remain unclear, “We will not halt our long-term deployments and do not plan to
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
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