SOUTH KOREA
Expansion meets expectations
The nation’s economic expansion met expectations in the second quarter as exports held up despite global trade friction. Semiconductor shipments led the way, while domestic demand showed weakness. GDP expanded 0.7 percent in the quarter ended last month from the previous quarter, when it expanded 1.0 percent, the Bank of Korea said yesterday. Economists had expected GDP to grow 0.7 percent quarter-on-quarter. From a year earlier, the economy expanded 2.9 percent, matching a median estimate of economists.
BANKING
Credit card data published
Hackers gained access to about 14,000 credit card numbers in Chile and published them on social media, the Chilean government said late on Wednesday. The government’s bank regulatory agency said the hack was carried out by a group called the Shadow Brokers, who published the credit card numbers, expiration dates and security codes. The banks affected by the attack included Santander, Itau, Scotiabank and Banco de Chile. The government did not say what the potential financial loss was.
CHIPMAKERS
Hynix posts record profits
The world’s second-largest memorychip maker, SK Hynix Inc, posted record profits in the second quarter, the South Korean company said yesterday, citing strong global demand. Net profit surged 75 percent year-on-year to 4.3 trillion won (US$3.8 billion) in the three months to last month, while operating profit jumped 83 percent to 5.6 trillion won during the same period. SK Hynix said it expects the upward trend to continue in the latter half of the year.
FINANCE
Nomura profit plunges
Nomura Holdings Inc’s profit plunged to the lowest in two years as its wholesale business lost money because of a slump in fixed-income trading, while the domestic retail operation lost steam. Net income fell 91 percent to ￥5.2 billion (US$47 million) in the quarter ended last month from a year earlier, Japan’s biggest brokerage said yesterday. The firm posted its second consecutive quarterly loss overseas, led by Europe.
AUTOMAKERS
Daimler revenue, profits fall
Daimler AG yesterday reported falling revenue and profits in the second quarter, despite selling more cars. The Mercedes-Benz and Smart manufacturer booked net profit attributable to shareholders of 1.73 billion euros (US$2 billion) between April and last month, down 29 percent year-on-year. While the group sold 1 percent more cars and trucks, at 833,005 vehicles, revenue fell 1 percent to 40.8 billion euros. Operating profits fell 27 percent to 2.6 billion euros.
DISTILLERS
Diageo unveils buy back
Diageo PLC plans to buy back up to ￡2 billion (US$2.6 billion) of stock as earnings shift into higher gear at the world’s largest distiller. The latest move to return cash to shareholders follows a buyback of ￡1.5 billion worth of stock in the first six months of the year. The move came as the owner of Johnnie Walker whisky reported sales and earnings slightly above expectations for the period. For the full year, organic net sales rose 5 percent, the company said yesterday. Operating profit before exceptional items gained 8 percent. Both figures were just above analysts’ estimates.
To many, Tatu City on the outskirts of Nairobi looks like a success. The first city entirely built by a private company to be operational in east Africa, with about 25,000 people living and working there, it accounts for about two-thirds of all foreign investment in Kenya. Its low-tax status has attracted more than 100 businesses including Heineken, coffee brand Dormans, and the biggest call-center and cold-chain transport firms in the region. However, to some local politicians, Tatu City has looked more like a target for extortion. A parade of governors have demanded land worth millions of dollars in exchange
An Indonesian animated movie is smashing regional box office records and could be set for wider success as it prepares to open beyond the Southeast Asian archipelago’s silver screens. Jumbo — a film based on the adventures of main character, Don, a large orphaned Indonesian boy facing bullying at school — last month became the highest-grossing Southeast Asian animated film, raking in more than US$8 million. Released at the end of March to coincide with the Eid holidays after the Islamic fasting month of Ramadan, the movie has hit 8 million ticket sales, the third-highest in Indonesian cinema history, Film
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue jumped 48 percent last month, underscoring how electronics firms scrambled to acquire essential components before global tariffs took effect. The main chipmaker for Apple Inc and Nvidia Corp reported monthly sales of NT$349.6 billion (US$11.6 billion). That compares with the average analysts’ estimate for a 38 percent rise in second-quarter revenue. US President Donald Trump’s trade war is prompting economists to retool GDP forecasts worldwide, casting doubt over the outlook for everything from iPhone demand to computing and datacenter construction. However, TSMC — a barometer for global tech spending given its central role in the
Alchip Technologies Ltd (世芯), an application-specific integrated circuit (ASIC) designer specializing in server chips, expects revenue to decline this year due to sagging demand for 5-nanometer artificial intelligence (AI) chips from a North America-based major customer, a company executive said yesterday. That would be the first contraction in revenue for Alchip as it has been enjoying strong revenue growth over the past few years, benefiting from cloud-service providers’ moves to reduce dependence on Nvidia Corp’s expensive AI chips by building their own AI accelerator by outsourcing chip design. The 5-nanometer chip was supposed to be a new growth engine as the lifecycle
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