MALAYSIA
Incentives to be raised
The government yesterday said that it would expand tax incentives for companies that use the country as a base for conducting their regional or global business. Effective this year, companies eligible for the government’s Principal Hub incentive would be subjected to a 10 percent tax rate for their operations instead of the wider corporate tax rate of 24 percent.
JAPAN
Household spending up 1%
Households in August increased spending for a ninth month without splurging ahead of a sales tax hike that took effect this month, suggesting the boom-and-bust consumption pattern that accompanied previous tax increases might not materialize this time. Household spending rose 1 percent from a year earlier, Ministry of Internal Affairs and Communications data showed yesterday, matching the median forecast of economists. Separate figures showed that wages fell for a seventh month this year, offering little hope that higher pay might fuel consumption over the coming months.
RETAIL
Two firms drop e-cigarettes
Walgreens Boots Alliance Inc and Kroger Co are to stop selling electronic cigarettes, making them the latest retailers to take action in the wake of the outbreak of vaping-related lung injuries in the US. “We have made the decision to stop selling e-cigarette products at our stores nationwide,” a Walgreens spokesman said on Monday. The drugstore chain, which operates thousands of locations around the country, would still sell regular cigarettes. Kroger said earlier that it too would halt the sale of all electronic nicotine-delivery products, citing mounting health questions.
TELECOMS
Cellnex buying Arqiva towers
Cellnex Telecom SA is buying Arqiva’s UK telecommunication towers for ￡2 billion (US$2.5 billion) and selling new shares to help the fast-growing Spanish infrastructure company pursue more deals. Cellnex would acquire 7,400 mobile towers that privately held Arqiva is carving out from its broadcasting mast business. The deal includes commercial rights over a further 900 tower sites, and concessions to use London street infrastructure as locations for mobile equipment, Cellnex said in a statement.
COSMETICS
Shiseido agrees to buy firm
Shiseido Co agreed to buy skincare brand Drunk Elephant Holdings LLC for US$845 million as the Japanese beauty company seeks to appeal to younger consumers in the US. The deal for Drunk Elephant would not have a significant effect on full-year earnings, Shiseido said in a statement yesterday. It would be financed with a combination of cash and credit, and is expected to close by the end of the year, it said.
AUDIO
B&O fires chief executive
Bang & Olufsen A/S (B&O) replaced its chief executive officer as the Danish maker of luxury audio systems grew impatient with the slow pace of the company’s turnaround. B&O named Kristian Tear, 55, as its new chief executive officer with immediate effect. He replaces Henrik Clausen, who would be “at the company’s disposal in the short term,” according to a statement. The company earlier this month reported a second consecutive quarterly loss, missing analyst estimates, as sales declined 30 percent.
State-run CPC Corp, Taiwan (CPC, 台灣中油) yesterday signed a letter of intent with Alaska Gasline Development Corp (AGDC), expressing an interest to buy liquefied natural gas (LNG) and invest in the latter’s Alaska LNG project, the Ministry of Economic Affairs said in a statement. Under the agreement, CPC is to participate in the project’s upstream gas investment to secure stable energy resources for Taiwan, the ministry said. The Alaska LNG project is jointly promoted by AGDC and major developer Glenfarne Group LLC, as Alaska plans to export up to 20 million tonnes of LNG annually from 2031. It involves constructing an 1,290km
NEXT GENERATION: The company also showcased automated machines, including a nursing robot called Nurabot, which is to enter service at a Taichung hospital this year Hon Hai Precision Industry Co (鴻海精密) expects server revenue to exceed its iPhone revenue within two years, with the possibility of achieving this goal as early as this year, chairman Young Liu (劉揚偉) said on Tuesday at Nvidia Corp’s annual technology conference in San Jose, California. AI would be the primary focus this year for the company, also known as Foxconn Technology Group (富士康科技集團), as rapidly advancing AI applications are driving up demand for AI servers, Liu said. The production and shipment of Nvidia’s GB200 chips and the anticipated launch of GB300 chips in the second half of the year would propel
‘MAKE OR BREAK’: Nvidia shares remain down more than 9 percent, but investors are hoping CEO Jensen Huang’s speech can stave off fears that the sales boom is peaking Shares in Nvidia Corp’s Taiwanese suppliers mostly closed higher yesterday on hopes that the US artificial intelligence (AI) chip designer would showcase next-generation technologies at its annual AI conference slated to open later in the day. The GPU Technology Conference (GTC) in California is to feature developers, engineers, researchers, inventors and information technology professionals, and would focus on AI, computer graphics, data science, machine learning and autonomous machines. The event comes at a make-or-break moment for the firm, as it heads into the next few quarters, with Nvidia CEO Jensen Huang’s (黃仁勳) keynote speech today seen as having the ability to
WAIT-AND-SEE: Last month’s consumer price index came in at 2.8%, which boosts expectations that the Fed would proceed cautiously to lower inflation sustainably The US Federal Reserve is widely expected to keep interest rates unchanged at its policy meeting this week, treading carefully amid uncertainty over US President Donald Trump’s economic policies, which include spending cuts and sweeping tariffs. Since January, Trump has imposed levies on major trading partners Canada, Mexico and China, and on steel and aluminum imports, roiling financial markets and fanning fears that his plans could tip the world’s biggest economy into a recession. The Trump administration has also embarked on unprecedented cost-cutting efforts that target staff and spending, while the US president has promised tax reductions and deregulation down the road. However,
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