GERMANY
Industrial output slows 0.6%
Industrial production slipped in December last year after strong momentum throughout the year helped Europe’s largest economy expand at the fastest pace since 2011. Factory output declined 0.6 percent from November last year, when it increased a revised 3.1 percent, the Federal Ministry of Economic Affairs and Energy said yesterday. “Industrial output was very dynamic in the course of 2017, but has lost some momentum lately,” the ministry said in a statement. “Nonetheless, production is clearly pointing upward... Strong manufacturing momentum can be expected in the coming months.”
TRADE
China demands WTO talks
China has sent the US a demand for talks on compensation for steep US tariffs imposed on imported solar panels and washing machines, WTO filings showed on Tuesday. China said it was asserting its right as a major exporter to demand compensation, and said it believed the US measures broke numerous WTO rules. China’s move follows similar steps by Taiwan and South Korea.
SOLAR POWER
BP to invest US$500 million
BP PLC plans to invest US$500 million per year on low-carbon energy, which presents a growing challenge to its traditional oil business. The UK-based oil producer sees “significant commercial potential” in solar power and is becoming more active in trading carbon credits, BP deputy CEO Lamar McKay said in London. It also plans to set targets for emissions from operations, he said. In December last year, BP re-entered the solar market after a six-year absence with a US$200 million investment in a company that develops photovoltaic farms in Europe.
ENTERTAINMENT
Disney profit surges 78.4%
Walt Disney Co, which is buying some of Twenty-First Century Fox Inc’s film and TV units, on Tuesday reported a 78.4 percent surge in quarterly profit as it recorded a US$1.6 billion gain due to changes to US tax law. Net income attributable to the company rose to US$4.42 billion, or US$2.91 per share, from US$2.48 billion, or US$1.55 per share. Disney’s revenue rose 3.8 percent to US$15.35 billion in the first quarter ended Dec. 30 last year, from US$14.78 billion a year earlier.
MINING
Rio Tinto increases dividend
Rio Tinto Group yesterday rewarded shareholders with a record dividend as the mining giant reported a bumper annual net profit of US$8.76 billion last year, a 90 percent jump as commodity prices strengthened. The Anglo-Australian firm had posted US$4.62 billion in annual profit in the previous financial year, turning around a loss in 2015, when key metals prices slumped and the growth in Chinese demand slowed. Underlying profit for the year to Dec. 31 last year was US$8.63 billion, a 69 percent rise from the previous period.
ALCOHOL
Carlsberg eyes mild growth
Danish brewer Carlsberg A/S yesterday said it expected operating profit to grow by a mid-single-digit percentage this year and that it would increase dividend payout. Net profit without impairments last year rose to 4.93 billion Danish kroner (US$819.6 million), slightly greater the 4.86 billion kroner expected by analysts in a Reuters poll. Carlsberg, the world’s third-largest brewer, gave no quarterly earnings figures. However, fourth-quarter sales fell to 13.36 billion kroner, missing the 13.63 billion kroner expected in the poll.
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Taiwan will prioritize the development of silicon photonics by taking advantage of its strength in the semiconductor industry to build another shield to protect the local economy, National Development Council (NDC) Minister Paul Liu (劉鏡清) said yesterday. Speaking at a meeting of the legislature’s Economics Committee, Liu said Taiwan already has the artificial intelligence (AI) industry as a shield, after the semiconductor industry, to safeguard the country, and is looking at new unique fields to build more economic shields. While Taiwan will further strengthen its existing shields, over the longer term, the country is determined to focus on such potential segments as
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors
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