Forex losses hit record high
Local life insurers reported NT$200.8 billion (US$6.52 billion) in foreign exchange losses for the first 11 months of this year, a record for the period, due to higher hedging costs amid an increasing interest rate spread between Taiwan and the US, Financial Supervisory Commission statistics released yesterday showed. Property insurers reported foreign exchange losses of NT$1.2 billion for the same period, the data showed. Local life insurers booked foreign exchange gains of NT$318.9 billion as of the end of last month, as the New Taiwan dollar depreciated 3.36 percent against the US dollar in the first 11 months, the data showed. However, those gains were offset by heavy hedging losses totaling NT$494.1 billion as of Nov. 30, the data showed.
Macronix to boost spending
Macronix Internatonal Co (旺宏電子), the world’s biggest NOR flash memorychip maker, on Monday said that its board of directors has approved additional capital spending of NT$865 million for regular operations next year. In October, the board gave the green light to capital expenditure of NT$14.2 billion to boost high-end chip capacity to meet demand from clients. The budget is to be spent from the current quarter. The board also approved the renewal of an agreement with IBM Corp to develop a new phase-change memory chip, the company said.
TAIEX follows Wall Street up
The TAIEX yesterday rose 1.72 percent on a technical rebound as buying was sparked by a strong showing on Wall Street overnight — with the Dow Jones Industrial Average gaining 4.98 percent — in its biggest-ever single-day point gain. Turnover totaled NT$81.32 billion. Foreign institutional investors bought a net NT$7.63 billion of shares on the main board. Foreign institutional investors had apparently not returned from the Christmas holiday, a market analyst said. A rebound in technology companies in the US overnight lifted the domestic bellwether electronics sector, with shaers of contract chipmaker Taiwan Semiconductor Manufacturing Co (台積電), the most heavily weighted stock on the local market, rising 3.46 percent to close at NT$224. Also in the technology sector, shares of Largan Precision Co (大立光), a smartphone camera lens supplier to Apple Inc, added 0.32 percent to close at NT$3,135 and iPhone assembler Hon Hai Precision Industry Co (鴻海精密) shares edged up 0.85 percent to end at NT$70.80.
Tuntex Mart to close down
Tuntex Mart, the largest hypermarket in Keelung, is to cease operations on Feb. 18 amid escalating competition from online vendors, the Keelung City Government said on Wednesday. A total of 136 people would be laid off due to the closure, Keelung Department of Social Affairs Director Wu Ting-feng (吳挺鋒) told reporters. It had been rumored that Tuntex Mart, which opened in 1994, would close due to rising operating costs and a decline in foot traffic. The layoffs are to occur in three phases, with the first to be completed by Feb. 4, the second by Feb. 19 and the third by Feb. 28, Wu said. Tuntex Mart informed the department of the layoff plan and talks on the issue have proceeded smoothly, Wu said, adding that the city government would pay close attention to the discussions to protect the rights of the affected workers. Tuntex Mart would have to ensure that affected workers receive wages, overtime pay and compensation for the layoffs, he said.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion