SOUTH KOREA
Jobless rate rises further
The unemployment rate ticked higher for a third month, an unexpected outcome that illustrates the challenge of boosting hiring in an economy struggling with slumping exports and weak investment. It climbed to 3.6 percent for last month, seasonally adjusted data from the statistics office showed yesterday. Economists had predicted the rate would stay unchanged at 3.5 percent.
INDONESIA
Forest fires affect growth
The total damage and economic loss from forest fires this year amounted to at least US$5.2 billion, equal to 0.5 percent of the nation’s GDP, the World Bank said in a report yesterday. The estimate was based on the bank’s assessment in eight affected provinces from June to October. The bank cut its GDP growth forecasts by 0.09 and 0.05 percentage points to 5 percent for this year and 5.1 percent for next year because of the fires.
ARGENTINA
Fernandez prioritizes growth
The nation is willing, but unable to pay its debts under current conditions and needs the economy to grow again before meeting its obligations, President Alberto Fernandez said in his first speech after being sworn in. The government would seek “constructive and cooperative” dialogue with the IMF and bondholders to address the debt load, he said, without giving additional details. The outgoing administration of Mauricio Macri had left the nation in “virtual default,” he said.
BEVERAGES
Illycaffe kicks off stake sale
Illycaffe SpA, one of Italy’s largest coffee roasters, has started proceedings for the sale of a minority stake to support its expansion in the US, people familiar with the matter said. The company, known for high-end espresso sold in silver and red cans, has sent preliminary marketing materials to potential investors, the people said. Illycaffe could offer about a 20 percent stake that might value the firm at more than 1 billion euros (US$1.1 billion), the people said, asking not to be identified because the information is private.
ENERGY
Group to acquire Stoneway
A consortium of Chinese companies led by China Huadian Corp (中國華電) is close to acquiring a controlling stake in Argentine power generator Stoneway Group LP, people familiar with the matter said. Huadian — one of several Chinese state-owned power generation corporations born out of a 2002 industry reform — and its partners are to acquire about 80 percent of Stoneway. The group is to make the acquisition in three tranches through a unit called China Huadian Engineering Co (中國華電工程), the people said, asking not to be identified as the talks are private.
TELECOMS
Telefonica picks 5G partners
Telefonica Deutschland Holding AG yesterday picked Nokia Oyj of Finland and China’s Huawei Technologies Co (華為) to build its 5G network, seeking to get work moving even though Germany has yet to finalize security rules governing the industry. Cooperation with the network vendors would be subject to both receiving the necessary certification in Germany, Telefonica Deutschland said, adding that this would enable it to make a start on building its network early next year. Telefonica Deutschland said it expected to have 5G up and running in Berlin, Hamburg, Munich, Cologne and Frankfurt by the end of 2021.
ADVANCED: Previously, Taiwanese chip companies were restricted from building overseas fabs with technology less than two generations behind domestic factories Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), a major chip supplier to Nvidia Corp, would no longer be restricted from investing in next-generation 2-nanometer chip production in the US, the Ministry of Economic Affairs said yesterday. However, the ministry added that the world’s biggest contract chipmaker would not be making any reckless decisions, given the weight of its up to US$30 billion investment. To safeguard Taiwan’s chip technology advantages, the government has barred local chipmakers from making chips using more advanced technologies at their overseas factories, in China particularly. Chipmakers were previously only allowed to produce chips using less advanced technologies, specifically
The New Taiwan dollar is on the verge of overtaking the yuan as Asia’s best carry-trade target given its lower risk of interest-rate and currency volatility. A strategy of borrowing the New Taiwan dollar to invest in higher-yielding alternatives has generated the second-highest return over the past month among Asian currencies behind the yuan, based on the Sharpe ratio that measures risk-adjusted relative returns. The New Taiwan dollar may soon replace its Chinese peer as the region’s favored carry trade tool, analysts say, citing Beijing’s efforts to support the yuan that can create wild swings in borrowing costs. In contrast,
TARIFF SURGE: The strong performance could be attributed to the growing artificial intelligence device market and mass orders ahead of potential US tariffs, analysts said The combined revenue of companies listed on the Taiwan Stock Exchange and the Taipei Exchange for the whole of last year totaled NT$44.66 trillion (US$1.35 trillion), up 12.8 percent year-on-year and hit a record high, data compiled by investment consulting firm CMoney showed on Saturday. The result came after listed firms reported a 23.92 percent annual increase in combined revenue for last month at NT$4.1 trillion, the second-highest for the month of December on record, and posted a 15.63 percent rise in combined revenue for the December quarter at NT$12.25 billion, the highest quarterly figure ever, the data showed. Analysts attributed the
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) quarterly sales topped estimates, reinforcing investor hopes that the torrid pace of artificial intelligence (AI) hardware spending would extend into this year. The go-to chipmaker for Nvidia Corp and Apple Inc reported a 39 percent rise in December-quarter revenue to NT$868.5 billion (US$26.35 billion), based on calculations from monthly disclosures. That compared with an average estimate of NT$854.7 billion. The strong showing from Taiwan’s largest company bolsters expectations that big tech companies from Alphabet Inc to Microsoft Corp would continue to build and upgrade datacenters at a rapid clip to propel AI development. Growth accelerated for
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