GERMANY
Business confidence dives
A closely watched survey is showing that business confidence has fallen to a near five-year low as managers’ expectations for the coming six months have deteriorated. The Ifo institute yesterday said that its monthly confidence index slipped to 97.4 points this month from 97.9 last month, in line with market expectations. The third straight monthly fall takes the index to its lowest since November 2014 and was entirely due to managers’ waning views of future prospects. Their assessment of the current situation rose modestly from last month.
BANKING
Deposit protection planned
New Zealand is one of the few developed countries where people with bank savings have no recourse if their bank fails, but Minister of Finance Grant Robertson yesterday announced plans for a program aimed at individual account holders that would guarantee bank deposits of up to NZ$50,000 (US$33,000). The plan would fully protect about 90 percent of savers and cover about 40 percent of the total NZ$352 billion in bank deposits, he said. The program should be finalized into legislation next year, he added.
AVIATION
Lufthansa adjusts dividends
Deutsche Lufthansa AG has adjusted its dividend policy in a bid to soothe investor worries a week after issuing its second profit warning this year. The airline is to rebase payments to 20 percent to 40 percent of adjusted net income, which would provide flexibility to pay attractive dividends, a spokesman said yesterday. Lufthansa previously paid out 10 percent to 25 percent of earnings before interest and tax. The new policy would help achieve more continuity and would be adjusted for one-time gains and losses, Lufthansa said.
ELECTRONICS
Erajaya shares rise
Shares of PT Erajaya Swasembada, an Indonesian distributor of Apple Inc’s iPhones and Samsung Electronics Co’s smartphones, yesterday headed for the biggest gain in more than a year after it said it was close to a tie-up with electronic cigarette manufacturer Juul Labs Inc. Erajaya would announce details of the partnership soon, president director Budiarto Halim said yesterday. “I’m currently bound by a non-disclosure agreement,” he said. Juul has signed a distribution deal with one of Erajaya’s units and would begin to retail e-cigarettes in greater Jakarta area, Java and Bali from the end of this month, Citigroup Inc said.
SAUDI ARABIA
Residency plan announced
The kingdom has opened applications for a permanent residency program designed to attract foreign investment, priced at 800,000 riyals (US$213,000). A one-year renewable residency is to cost 100,000 riyals. The residencies would allow foreigners to buy property and do business without a local sponsor, switch jobs and exit the kingdom easily and sponsor visas for family members. Applicants must be at least 21 years old, prove financial solvency and have a clean criminal record.
RUSSIA
Crackdown on Georgian wine
The consumer watchdog agency yesterday said it is tightening checks on Georgian alcohol imports after seeing an increase in cases of sub-standard wine. The move comes after a speech by a Russian lawmaker in Georgia’s parliament sparked protests and led to President Vladimir Putin banning the nation’s airlines from flying to Georgia.
Taiwan’s technology protection rules prohibits Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) from producing 2-nanometer chips abroad, so the company must keep its most cutting-edge technology at home, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. Kuo made the remarks in response to concerns that TSMC might be forced to produce advanced 2-nanometer chips at its fabs in Arizona ahead of schedule after former US president Donald Trump was re-elected as the next US president on Tuesday. “Since Taiwan has related regulations to protect its own technologies, TSMC cannot produce 2-nanometer chips overseas currently,” Kuo said at a meeting of the legislature’s
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process