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.
TARIFF TRADE-OFF: Machinery exports to China dropped after Beijing ended its tariff reductions in June, while potential new tariffs fueled ‘front-loaded’ orders to the US The nation’s machinery exports to the US amounted to US$7.19 billion last year, surpassing the US$6.86 billion to China to become the largest export destination for the local machinery industry, the Taiwan Association of Machinery Industry (TAMI, 台灣機械公會) said in a report on Jan. 10. It came as some manufacturers brought forward or “front-loaded” US-bound shipments as required by customers ahead of potential tariffs imposed by the new US administration, the association said. During his campaign, US president-elect Donald Trump threatened tariffs of as high as 60 percent on Chinese goods and 10 percent to 20 percent on imports from other countries.
Taiwanese manufacturers have a chance to play a key role in the humanoid robot supply chain, Tongtai Machine and Tool Co (東台精機) chairman Yen Jui-hsiung (嚴瑞雄) said yesterday. That is because Taiwanese companies are capable of making key parts needed for humanoid robots to move, such as harmonic drives and planetary gearboxes, Yen said. This ability to produce these key elements could help Taiwanese manufacturers “become part of the US supply chain,” he added. Yen made the remarks a day after Nvidia Corp cofounder and chief executive officer Jensen Huang (黃仁勳) said his company and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) are jointly
United Microelectronics Corp (UMC, 聯電) expects its addressable market to grow by a low single-digit percentage this year, lower than the overall foundry industry’s 15 percent expansion and the global semiconductor industry’s 10 percent growth, the contract chipmaker said yesterday after reporting the worst profit in four-and-a-half years in the fourth quarter of last year. Growth would be fueled by demand for artificial intelligence (AI) servers, a moderate recovery in consumer electronics and an increase in semiconductor content, UMC said. “UMC’s goal is to outgrow our addressable market while maintaining our structural profitability,” UMC copresident Jason Wang (王石) told an online earnings
MARKET SHIFTS: Exports to the US soared more than 120 percent to almost one quarter, while ASEAN has steadily increased to 18.5 percent on rising tech sales The proportion of Taiwan’s exports directed to China, including Hong Kong, declined by more than 12 percentage points last year compared with its peak in 2020, the Ministry of Finance said on Thursday last week. The decrease reflects the ongoing restructuring of global supply chains, driven by escalating trade tensions between Beijing and Washington. Data compiled by the ministry showed China and Hong Kong accounted for 31.7 percent of Taiwan’s total outbound sales last year, a drop of 12.2 percentage points from a high of 43.9 percent in 2020. In addition to increasing trade conflicts between China and the US, the ministry said
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