GERMANY
Industrial output fell in June
Industrial production in June dropped for the second time in three months, the latest signal of weakness from Europe’s biggest economy. The Federal Ministry for Economic Affairs and Energy yesterday said that production was down 1.5 percent compared with the previous month. That followed a 2 percent decline in April and a 0.1 percent gain in May. Economists had forecast a more modest 0.6 percent drop for June. On Tuesday, official data showed that factory orders increased by an unexpectedly strong 2.5 percent in June.
BANKING
Commerzbank profit steady
Germany’s second-biggest lender, Commerzbank AG, yesterday said that second-quarter profit was steady. Net profit shrank 0.3 percent to 271 million euros (US$303.4 million) and revenue fell 2.2 percent to 2.1 billion euros. Looking ahead to the full year, the bank said in a statement that it expects “higher underlying revenues” compared with last year’s 8.6 billion euros and “a slight increase in consolidated net income” from 865 million euros last year.
BANKING
CBA annual profit falls 8.1%
Commonwealth Bank of Australia (CBA), the country’s biggest lender, yesterday posted weaker annual profit for the second year running after a tumultuous year of industry scandals. The bank reported A$8.57 billion (US$5.77 billion) in statutory net profit for the financial year ending June 30, down 8.1 percent from the same period last year, while its preferred earnings measure of cash profit fell 4.7 percent to A$8.49 billion. CBA said that it paid out A$918 million in customer remediation costs in the financial year, along with an additional $358 million to boost compliance.
AIRLINES
Cathay warns over tensions
Cathay Pacific Airways Ltd yesterday said that geopolitical and trade tensions are likely to hurt business after the airline rebounded to a profit in the first half of this year. Protests in Hong Kong last month cut inbound passenger traffic and are “adversely” affecting bookings, Cathay said in a statement. First-half net income was HK$1.35 billion (US$172.18 million), compared with a year-ago loss of HK$263 million. With some companies advising staff to put off travel to Hong Kong, second-half performance could come under further pressure, it said.
CONGLOMERATES
Softbank Q1 net profit triples
Softbank Group Corp yesterday said that its first-quarter net profit more than tripled thanks to exceptional gains related to the sale of shares in Chinese e-commerce giant Alibaba Group Holding Ltd (阿里巴巴). Softbank announced net profit of ￥1.12 trillion (US$10.54 billion) for the three months to June, up 257.6 percent from the same period last year. Sales rose 2.8 percent to ￥2.34 trillion, while operating profit dipped 3.7 percent to ￥690 billion, it said.
CHEMICALS
DuPont mulls unit spin-off
DuPont de Nemours Inc — fresh off the breakup of chemical giant DowDuPont Inc — is considering unloading its nutrition and biosciences division, people familiar with the matter said. The specialty chemicals maker is working with advisers to evaluate options that could include selling or spinning off the business, the people said. It is also considering a so-called Reverse Morris Trust, or a tax-free merger, with another firm.
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
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
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
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