TRADE
PRC buys US pork, soybeans
Beijing yesterday said that it had bought a “considerable” amount of US pork and soybeans, the latest sign of conciliation between the two nations. “Recently Chinese enterprises have ... started price inquiry and purchases of US agricultural products, and have also completed a transaction of soybeans and pork of considerable size with the US,” Chinese Ministry of Commerce spokesman Gao Feng (高峰) told a press briefing.
BANKING
ABN Amro being probed
Dutch prosecutors are investigating alleged money laundering at ABN Amro, saying that they suspect the lender had failed to report or probe suspicious transactions for years. Prosecutors yesterday said they believe ABN Amro reported suspicious transactions too late or not at all over a long period, adding that the bank failed to properly investigate client behavior and did not sever ties with suspect clients in a timely fashion. Prosecutors said the probe was based on information provided by the Dutch central bank, which earlier this year ordered ABN to review all local retail clients for possible money laundering or other criminal activities.
SINGAPORE
Factory output dives
Factory output last month plunged far more than economists predicted, in a sign that the city-state’s manufacturing downturn could be worsening. Industrial production dropped 8 percent from a year earlier, worse than all the forecasts in a Bloomberg survey of economists, making it the biggest contraction this year, including June’s revised 7.9 percent decline. It shrank 7.5 percent on a seasonally adjusted monthly basis. US-China and Japan-South Korea trade tensions, as well as a broader slowdown in China and elsewhere, continue to weigh on Singapore, where the government has slashed its full-year growth forecast to nearly zero.
INTERNET
Baidu to sell some of Ctrip
Baidu Inc (百度) is selling about one-third of its stake in online travel Web site Ctrip.com International Ltd (攜程旅行網), generating about US$1 billion to counter a slowing economy and intensifying competition in its key advertising business. Ctrip yesterday announced a proposed secondary offering of 31.3 million American depositary receipts held by Baidu. That represents about 30 percent of its stake in Ctrip and is equivalent to about US$1 billion based on Ctrip’s current share price. Baidu is to remain Ctrip’s largest shareholder, with a 19 percent stake.
INDIA
Fiscal gap to widen: Fitch
The nation’s combined fiscal gap, including states’ deficits, is seen widening to the highest in about eight years, as the government boosts measures to stimulate a slowing economy. The general government deficit is seen at 7.5 percent of GDP in the year to March, Fitch Ratings said. Fitch’s reading is well above the “BBB” category median of 1.9 percent.
PHARMACEUTICALS
Glaxo targets RSV vaccine
GlaxoSmithKline PLC is taking aim at respiratory syncytial virus (RSV), which kills tens of thousands of children each year. Experimental shots targeting RSV are the top pipeline priority for Glaxo’s vaccines unit, senior vice president for research and development Emmanuel Hanon said in an interview yesterday. Glaxo plans to move those vaccines into the final stage of testing by the end of next year, he said.
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
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
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
CHEMICAL FIRE: 10 Indian employees were injured by smoke inhalation at a Tata Electronics plant in Tamil Nadu state that produces components for Apple Inc At least 10 people received medical treatment, with two hospitalized after a major fire on Saturday disrupted production at a key Tata Electronics Pvt Ltd plant in southern India that makes Apple Inc’s iPhone components. The fire occurred at the plant in the city of Hosur in Tamil Nadu state that makes some iPhone components. It broke out near another building inside the Tata complex, which was to begin producing complete iPhones in the coming months. The fire was contained to one building and has been extinguished fully, top district administrative official K.M. Sarayu said. No decision has been made on when
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