JAPAN
Economy sees 0.2% rise
The economy grew at an annual pace of 0.2 percent in the third quarter, supported by consumer purchases ahead of a tax hike, the government reported yesterday. Weak exports were a drag on growth and inventories declined, but government spending helped support demand, expanding by 2.4 percent, it said. It was the fourth straight quarter of expansion, but well below analysts’ forecasts. The quarterly rate of growth was 0.1 percent. An increase in the national sales tax is expected to drag growth lower this quarter.
ENTERTAINMENT
Disney Plus a blockbuster
Walt Disney Co’s Disney Plus has said that more than 10 million customers signed up on its first day of launch, far exceeding expectations. The mix of Marvel and Star Wars movies and shows, classic animated films and new series appears to be a hit out of the gate after its launch on Tuesday in the US, Canada and the Netherlands. The streaming service costs US$7 a month or US$70 a year after a seven-day free trial. Customers of some Verizon wireless and home-Internet plans in the US were offered a year free. Netflix has garnered 158 million subscribers since launching its streaming platform in 2007.
ACQUISITIONS
Thermo Fisher eyes Qiagen
Thermo Fisher Scientific Inc, the maker of diagnostic equipment, is considering a purchase of molecular testing firm Qiagen NV in what could become one of its biggest-ever merger and acquisitions, people with knowledge of the matter said. Thermo Fisher has approached the Dutch company about a potential deal, said the people, who asked not to be identified because the information is private. Qiagen, which is listed in New York and Frankfurt, has a market value of about US$7.3 billion.
MINING
BHP unveils new CEO
Australian mining giant BHP Billiton Ltd yesterday announced that long-time employee Mike Henry would replace chief executive officer Andrew Mackenzie when he steps down at the end of the year. The world’s biggest miner said that Henry was tapped to take over the top job from Jan. 1 after a “thorough succession process.” Henry joined the global resources company in 2003 and has led its Australia minerals operations since 2016.
TECHNOLOGY
Cisco forecast disappoints
Cisco Systems Inc gave a quarterly sales forecast that fell far short of projections, signaling that companies are postponing hardware purchases amid global political and economic uncertainty, including the China-US trade dispute. Revenue in the fiscal second quarter would decline 3 to 5 percent from the same period a year earlier, the company said in a statement on Wednesday. That indicates sales of about US$11.9 billion. Adjusted profit would be US$0.75 to US$0.77 a share, also missing analysts’ predictions.
COWORKING
WeWork hit by losses
WeWork posted losses of US$1.25 billion in the third quarter, despite the beleaguered office space start-up nearly doubling its revenue, US media reports said on Wednesday. The firm has suffered a dramatic reversal in fortunes since its US$47 billion valuation at the start of the year. The record-high loss was more than double the red ink logged over the same period a year earlier, while revenue soared to US$934 million, according to the Wall Street Journal, which cited a report to debt holders by parent company We Co.
To many, Tatu City on the outskirts of Nairobi looks like a success. The first city entirely built by a private company to be operational in east Africa, with about 25,000 people living and working there, it accounts for about two-thirds of all foreign investment in Kenya. Its low-tax status has attracted more than 100 businesses including Heineken, coffee brand Dormans, and the biggest call-center and cold-chain transport firms in the region. However, to some local politicians, Tatu City has looked more like a target for extortion. A parade of governors have demanded land worth millions of dollars in exchange
An Indonesian animated movie is smashing regional box office records and could be set for wider success as it prepares to open beyond the Southeast Asian archipelago’s silver screens. Jumbo — a film based on the adventures of main character, Don, a large orphaned Indonesian boy facing bullying at school — last month became the highest-grossing Southeast Asian animated film, raking in more than US$8 million. Released at the end of March to coincide with the Eid holidays after the Islamic fasting month of Ramadan, the movie has hit 8 million ticket sales, the third-highest in Indonesian cinema history, Film
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue jumped 48 percent last month, underscoring how electronics firms scrambled to acquire essential components before global tariffs took effect. The main chipmaker for Apple Inc and Nvidia Corp reported monthly sales of NT$349.6 billion (US$11.6 billion). That compares with the average analysts’ estimate for a 38 percent rise in second-quarter revenue. US President Donald Trump’s trade war is prompting economists to retool GDP forecasts worldwide, casting doubt over the outlook for everything from iPhone demand to computing and datacenter construction. However, TSMC — a barometer for global tech spending given its central role in the
Alchip Technologies Ltd (世芯), an application-specific integrated circuit (ASIC) designer specializing in server chips, expects revenue to decline this year due to sagging demand for 5-nanometer artificial intelligence (AI) chips from a North America-based major customer, a company executive said yesterday. That would be the first contraction in revenue for Alchip as it has been enjoying strong revenue growth over the past few years, benefiting from cloud-service providers’ moves to reduce dependence on Nvidia Corp’s expensive AI chips by building their own AI accelerator by outsourcing chip design. The 5-nanometer chip was supposed to be a new growth engine as the lifecycle
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