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.
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
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
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
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