HONG KONG
PMI falls on dispute, protests
Sentiment among the territory’s manufacturers last month worsened again as the US-China trade spat rumbled on and the economy buckled under the brunt of anti-government protests. The latest reading for the Markit Hong Kong purchasing managers’ index (PMI) slid to 40.8 from 43.8 in July, a second straight monthly drop, according to data released by IHS Markit. It is a fresh low for the indicator of manufacturing intentions in data going back to at least September 2016. Figures below 50 indicate contraction.
AUTOMAKERS
Japanese brands hurt by row
Japanese automakers posted sharper sales falls in South Korea last month, industry data showed yesterday, hit by a consumer boycott of Japanese vehicles amid a worsening diplomatic row between the countries. Toyota Motor Corp and other Japanese automakers saw South Korean sales tumble 57 percent to 1,398 vehicles from a year earlier, steeper than the 17 percent fall in July. Toyota’s South Korean sales fell 59 percent to 542 from a year earlier, while Honda Motor’s sales tumbled 81 percent to 138.
GERMANY
Chemicals output down
A weakening manufacturing sector in the country and around the world weighed heavily on its chemicals output in the second quarter of this year, the VCI industry federation said yesterday. Production was down 8.8 percent annually in the April-to-June period, it said, making for revenues 4.3 percent lower at 48 billion euros (US$53 billion). Looking ahead to the full year, the VCI predicted a fall of 6 percent in chemicals production, significantly worse than its first-quarter forecast of a 3.5 percent decline, while revenues would slump 5 percent to 193 billion euros.
UNITED STATES
Factory output declines
A trade dispute with China and slower global growth are weighing on the economy, reducing factory output last month for the first time in three years. A survey by the Institute for Supply Management, an association of purchasing managers, on Tuesday showed that factory production and new orders fell sharply last month and are shrinking. The institute’s manufacturing index slid to 49.1 last month from 51.2 in July. That is the lowest reading issued since January 2016. Any reading below 50 signals a contraction in the sector. Manufacturers also cut jobs, the survey found.
INTERNET
Facebook to hide ‘like’ count
Facebook Inc on Tuesday confirmed that it is dabbling with no longer making a public display of how many “likes” are racked up by posts. Such a change could ease pressure to win approval with images, videos or comments and, instead, get people to simply focus on what is in posts. “We are considering hiding like counts from Facebook,” a spokesman said on Tuesday.
RUSSIA
Moscow might open Arctic
Minister of Natural Resources and the Environment Dmitry Kobylkin yesterday said he supports allowing private oil and gas companies to work on the Arctic shelf. Speaking to reporters at an economic forum in the eastern city of Vladivostok, Kobylkin said he supported “any decision linked to an increase in investment in projects related to hydrocarbons.” Only state-controlled Gazprom PJSC and Rosneft PJSC are authorized to operate on the country’s Arctic shelf.
Contract chipmaker United Microelectronics Corp (UMC, 聯電) yesterday said it has signed a memorandum of understanding (MOU) with Polar Semiconductor LLC to collaborate on the production of 8-inch wafers in the US. The collaboration aims to strengthen 8-inch wafer manufacturing in the US amid Washington’s efforts to increase onshore manufacturing of semiconductors, contribute to supply chain resilience against shifting geopolitical dynamics, and ensure a secure domestic supply of power semiconductors critical to automotive, electric grids, robotic manufacturing and data centers, the companies said in a joint statement. Under the MOU, Polar and UMC will identify devices for Polar to manufacture at
TECH TITANS: Amazon’s latest chip joins Google in competing for the 90 percent market share held by Nvidia, which claims it is ‘a generation ahead of the industry’ Amazon Web Services (AWS) on Tuesday launched its in-house-built Trainium3 artificial intelligence (AI) chip, marking a significant push to compete with Nvidia Corp in the lucrative market for AI computing power. The move intensifies competition in the AI chip market, where Nvidia dominates with an estimated 80 to 90 percent market share for products used in training large language models that power the likes of ChatGPT. Google last week caused tremors in the industry when it was reported that Facebook-parent Meta Platforms Inc would employ Google AI chips in data centers, signaling new competition for Nvidia. This followed the release last month of
Two companies wholly owned by the daughter of the founder of Hon Hai Precision Industry Co (鴻海精密) on Monday reported to the Taiwan Stock Exchange that they would dispose of all of the Hon Hai shares they hold. In filings with the exchange, Hong Wei Investment Co (鋐維) said it would sell the 2.771 million Hon Hai shares it holds and Frontier Investment Corp (承鋒投資) said it would sell its 2.409 million Hon Hai shares from tomorrow until Jan. 3 next year. The two companies are wholly owned and chaired by Shirley Gou (郭曉玲), the eldest daughter of Hon Hai founder Terry
TARIFF TALKS: The US secretary of commerce is eyeing more than US$300 billion in investments and said Taiwan would train US workers, but Taipei has denied the latter US Secretary of Commerce Howard Lutnick said the US is expecting a large investment pledge from Taiwan in trade talks, while President William Lai (賴清德) listed areas that need improvement in order for projects to be completed. “We’re in the midst of discussions,” Lutnick said on Wednesday. “But the fact is, this administration’s goal is to bring semiconductor manufacturing to America.” Lai on Wednesday said Taiwan is supportive of US President Donald Trump’s goal of reindustrializing the US, including efforts to ramp up semiconductor production. Such a goal would require the US to reduce its reliance on Taiwan as a key source
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