CHINA
New tariff cuts announced
The government has announced another round of tariff cuts, lowering import taxes on more than 700 goods from Tuesday next week as part of its efforts to open up the economy and lower costs for domestic consumers. There would also be cuts to some export tariffs and temporary import tariff rates would be as low as zero for some goods, the Ministry of Finance said yesterday. The “temporary” rates can be changed ad hoc and can be lower than the current Most-Favored Nations standard, although they are also available to all WTO members.
ITALY
EU-compliant budget passed
After a raucous session, the Senate has approved a national budget law that was tweaked in a bid to satisfy EU concerns. Much of the government’s planned spending for next year, which won passage in parliament’s upper chamber at about 3am on Sunday, satisfies the expensive campaign promises by the country’s populist coalition. Those included rolling back pension changes and guaranteeing income for the jobless or underemployed. Prime Minister Giuseppe Conte’s government is rushing to win final approval of the budget in the lower Chamber of Deputies later this week.
EQUITIES
Euronext eyeing Oslo Bors
Euronext NV is making a 625 million euros (US$712 million) cash tender offer for Oslo Bors VPS, the Norwegian Stock Exchange and national CSD operator, as consolidation among trading exchanges accelerates. Euronext has already secured support for the offer from Oslo Bors shareholders representing 49.6 percent of all outstanding shares and is offering 145 Norwegian kroner a share, according to a statement released yesterday.
AUTOMAKERS
Musk sees ‘tight’ schedule
Tesla Inc production should have all mid-range Model 3 orders delivered by the end of the year, although “it will be tight,” Tesla chief executive Elon Musk tweeted on Saturday. The company has released all cars for sale where original customers cannot take the delivery before this month, Musk said. If someone’s order does not make it in time, Tesla would cover the tax credit difference if the company committed delivery and the customer made “good faith” efforts to receive it before the end of the year, Musk said.
SAUDI ARABIA
Banks reach tax settlements
Major banks in the kingdom reached settlements worth a combined 16.7 billion riyals (US$4.5 billion) with the tax authority over a religious levy that the lenders had been kicking against. The deals come as the kingdom predicted a budget shortfall of 131 billion riyals, or 4.2 percent of GDP, for next year. The tax authority had extended the 2.5 percent religious levy, known as zakat, by including items that were previously exempt, while eliminating some deductions. Al Rajhi Bank was hit with the highest payment, agreeing to pay 5.41 billion riyals.
TURKEY
Banks take over telecom
A group of major banks took control of Turk Telekom AS, the nation’s largest telecom, setting it up for a likely sale after previous owner Otas defaulted on a multibillion-dollar loan. Akbank TAS is to hold 35.6 percent of the special purpose vehicle set up to take on Otas’ 55 percent controlling stake. Turkiye Garanti Bankasi AS is to have 22.1 percent of that entity and Turkiye Is Bankasi AS’ share is to be 11.6 percent, according to filings on Saturday.
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RISING: Strong exports, and life insurance companies’ efforts to manage currency risks indicates the NT dollar would eventually pass the 29 level, an expert said The New Taiwan dollar yesterday rallied to its strongest in three years amid inflows to the nation’s stock market and broad-based weakness in the US dollar. Exporter sales of the US currency and a repatriation of funds from local asset managers also played a role, said two traders, who asked not to be identified as they were not authorized to speak publicly. State-owned banks were seen buying the greenback yesterday, but only at a moderate scale, the traders said. The local currency gained 0.77 percent, outperforming almost all of its Asian peers, to close at NT$29.165 per US dollar in Taipei trading yesterday. The
RECORD LOW: Global firms’ increased inventories, tariff disputes not yet impacting Taiwan and new graduates not yet entering the market contributed to the decrease Taiwan’s unemployment rate last month dropped to 3.3 percent, the lowest for the month in 25 years, as strong exports and resilient domestic demand boosted hiring across various sectors, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday. After seasonal adjustments, the jobless rate eased to 3.34 percent, the best performance in 24 years, suggesting a stable labor market, although a mild increase is expected with the graduation season from this month through August, the statistics agency said. “Potential shocks from tariff disputes between the US and China have yet to affect Taiwan’s job market,” Census Department Deputy Director Tan Wen-ling
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