ITALY
Recession spoils targets
Economic contraction at the end of last year was less than estimated, but the economy still slipped into a recession that has cast doubts on Rome’s growth targets. The economy shrank 0.1 percent in the three months through December last year, less than the 0.2 percent drop in an initial reading. That was still the second consecutive quarterly decline, meaning it was the only nation in the eurozone slipping into a technical recession in the period. Inventories were the only component that had a negative contribution on the quarterly change in GDP. Consumption increased by 0.1 percent as exports rose 1.3 percent, the National Institute of Statistics said. GDP was unchanged from the same quarter in 2017.
EGYPT
Private activity slows further
Private-sector business activity slowed last month to its lowest level since September 2017, as companies struggled with liquidity and new orders continued to fall, an Emirates NBD-Markit survey showed. The purchasing managers index for the non-oil private sector fell for the sixth consecutive month, to 48.2 from 48.5 in January. The drop was linked to cash-flow issues, poor weather conditions and weak sales, companies said. Businesses had been squeezed by a 16.75 percent benchmark rate that the central bank had kept steady for almost a year, but the bank last month cut rates by 100 basis points — a reduction that could help stimulate lending. Changes in tax policy and declining yields on local bonds could also spur a new focus on private-sector growth.
MALAYSIA
Legoland sale considered
Sovereign wealth fund Khazanah Nasional Bhd is weighing a sale of Legoland Malaysia Resort, people with knowledge of the matter said. The theme park could be valued at about 1 billion ringgit (US$245.3 million) including debt, the people said. Khazanah is considering the potential divestment as part of its review of non-core assets, the people said. No final decisions have been made, and Khazanah could decide to keep the property, they added.
INVESTMENT
Gold dips as sentiment rises
Investors are pulling cash from the world’s largest gold exchange-traded fund at the fastest pace in more than a year, as easing trade tensions push buyers out of safe-haven assets. The US$33 billion SPDR Gold Shares fund (GLD) on Friday last week saw a net withdrawal of US$496 million, the most in a single day since February last year. That pushed the five-day total to about US$720 million, marking the fourth straight week of outflows. Investors are weighing the prospect of a trade deal, boosting risk appetite and dimming the appeal of havens. Commerzbank AG analysts in a research note attributed flows out of GLD and a dip in bullion prices below US$1,300 an ounce (31.1g) to “good sentiment.”
CHINA
Oil firm spinoff expected
The nation announced it would form a national oil and pipeline company, the first public acknowledgment of a massive energy industry overhaul planned since at least 2014. Beijing has planned to spin off into a new company some of the 112,000km of oil, gas and fuel pipelines held by state energy giants, led by China National Petroleum Corp (中國石油天然氣). The formation of a new company would help reform the energy sector by separating transmission and sales businesses, and removing impediments to oil and gas exploration.
Taiwan will prioritize the development of silicon photonics by taking advantage of its strength in the semiconductor industry to build another shield to protect the local economy, National Development Council (NDC) Minister Paul Liu (劉鏡清) said yesterday. Speaking at a meeting of the legislature’s Economics Committee, Liu said Taiwan already has the artificial intelligence (AI) industry as a shield, after the semiconductor industry, to safeguard the country, and is looking at new unique fields to build more economic shields. While Taiwan will further strengthen its existing shields, over the longer term, the country is determined to focus on such potential segments as
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Chizuko Kimura has become the first female sushi chef in the world to win a Michelin star, fulfilling a promise she made to her dying husband to continue his legacy. The 54-year-old Japanese chef regained the Michelin star her late husband, Shunei Kimura, won three years ago for their Sushi Shunei restaurant in Paris. For Shunei Kimura, the star was a dream come true. However, the joy was short-lived. He died from cancer just three months later in June 2022. He was 65. The following year, the restaurant in the heart of Montmartre lost its star rating. Chizuko Kimura insisted that the new star is still down
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors
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