TRADE
WTO cuts growth forecast
The WTO on Thursday lowered its global trade growth forecasts, citing increased trade tensions between large economies and heightened uncertainty. The Geneva-based trade body cut its estimate for this year by half a percentage point to a still-robust 3.9 percent. It predicts a further slowing of growth in volume terms next year to 3.7 percent. “While trade growth remains strong, this downgrade reflects the heightened tensions that we are seeing between major trading partners,” WTO Director-General Roberto Azevedo said.
STEEL
Thyssenkrupp plans split
German steel company and industrial equipment maker Thyssenkrupp AG on Thursday said it plans to split into two firms in a setup that it said would be “much more focused and efficient.” The company said the new Thyssenkrupp Industrials AG would include the elevator and automotive supplies business. The other company, Thyssenkrupp Materials AG, would include Thyssenkrupp’s 50 percent interest in a joint venture merging its European steel operations with those of India’s Tata Steel Ltd, it said.
MACROECONOMICS
Japan output reverses up
Japan’s factory output edged up 0.7 percent last month from the previous month, the first rise in four months, the Ministry of Economic, Trade and Industry said yesterday. However, the increase was lower than market expectations of a 1.4 percent gain. The ministry and analysts predicted that factory output would keep increasing in the next few months. Meanwhile, the jobless rate stood at 2.4 percent last month, down slightly from 2.5 percent the previous month, the Ministry of Internal Affairs and Communications said yesterday.
RETAIL
Fung told to halt court action
Toys “R” Us Inc’s joint venture partner must drop a court action it filed against the retailer in Hong Kong because the case threatens the sale of Toys’ Asia operation, a federal judge ruled. The decision is designed to negate an order by a Hong Kong court to suspend the auction of the retailer’s Asia operation. Fung Retailing Ltd (馮氏零售) owns a 15 percent stake in that business and filed a case in Hong Kong, claiming it would be harmed by the way Toys was pursuing a sale.
INTERNET
Amazon opens NY store
Amazon.com Inc opened a new retail store in New York on Thursday, selling a range of products that get top ratings from customers of the online giant. The brick-and-mortar outlet in New York’s trendy Soho neighborhood sells consumer electronics, kitchen, home, toys, books and games, and “chose only the products that customers have rated 4 stars and above, or are top sellers, or are new and trending,” Amazon said in a statement.
PHARMACEUTICALS
UnitedHealth buys Genoa
UnitedHealth Group Inc bought pharmacy company Genoa Healthcare from private equity group Advent International. The price was about US$2.5 billion, according to a person familiar with the transaction. UnitedHealth, the biggest US health insurer, beat out other parties, including drugstore chain Walgreens Boots Alliance, which last month was said to be interested in Genoa, the person said. Genoa runs more than 425 pharmacies in behavioral-health centers in 46 states, according to its Web site, serving more than 650,000 people.
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
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
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
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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