TRADE
Steel measures planned
The Canadian government is preparing new measures to prevent a potential flood of steel imports from global producers seeking to avoid US tariffs, according to people familiar with the plans. The measures are said to be a combination of quotas and tariffs aimed at certain countries, including China, the people said. The moves follow similar “safeguard” measures being considered by the EU aimed at warding off steel that might otherwise have been sent to the US. It comes alongside Canadian counter-tariffs on US steel, aluminum and other products set to take effect on Sunday.
BANKING
Lending growth picks up
Growth in lending to companies in the eurozone picked up last month, official data showed yesterday. Adjusted for some purely financial transactions, the pace of growth in credit to firms picked up to 3.6 percent year-on-year last month, up from 3.3 percent in April, the European Central Bank said in a data release. Growth in lending to households was flat at 2.9 percent. That meant firms accounted for most of the increase in the pace of credit growth last month, from 3 to 3.3 percent.
SEMICONDUCTORS
Renesas plans acquisitions
Renesas Electronics Corp, the world’s second-biggest supplier of semiconductors used in cars, is planning acquisitions to expand outside of the automotive industry. The pool of possible candidates includes about five or six companies outside Japan in aerospace, healthcare, industrial and general-purpose applications, Renesas chief financial officer Hidetoshi Shibata said in an interview. Companies offering analog and mixed-signal engineering talent and expertise are especially attractive, Shibata said.
BANKING
PT Bank Rakyat to sell stake
PT Bank Rakyat Indonesia, the country’s most profitable lender, is reviving a plan to sell a stake in its life insurance arm after scrapping a similar process more than two years ago, people with knowledge of the matter said. The state-controlled firm is asking investment banks to pitch for an advisory role in the next few weeks, the people said. The sale of a minority stake in the unit, known as PT Asuransi BRI Life, could fetch at least US$500 million, they said.
CHINA
Industrial profit rises
Profit growth at industrial companies held up, as factory inflation rebounded. Industrial profits advanced 21.1 percent last month from a year earlier, versus a 21.9 percent increase in April. Total profits for the month were 607.1 billion yuan (US$92.2 billion), the National Bureau of Statistics said yesterday. The gain was bolstered by a resurgence in producer prices, which accelerated more than expected last month as commodities, such as crude oil and metals, increased.
UNITED STATES
Consumer confidence wanes
Consumers lost a bit of their optimism this month, but are still feeling good by historical standards. The Conference Board on Tuesday said that its consumer confidence index slipped this month to 126.4, down from 128.8 last month, but up from 117.3 a year earlier. The index measures both consumers’ assessment of current economic conditions and expectations for the future. Their view of current conditions was almost unchanged from last month. Their outlook dimmed to the lowest level since December last year.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
Her white-gloved, waistcoated uniform impeccable, 22-year-old Hazuki Okuno boards a bullet train replica to rehearse the strict protocols behind the smooth operation of a Japanese institution turning 60 Tuesday. High-speed Shinkansen trains began running between Tokyo and Osaka on Oct. 1, 1964, heralding a new era for rail travel as Japan grew into an economic superpower after World War II. The service remains integral to the nation’s economy and way of life — so keeping it dazzlingly clean, punctual and accident-free is a serious job. At a 10-story, state-of-the-art staff training center, Okuno shouted from the window and signaled to imaginary colleagues, keeping
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
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