HONG KONG
Relief measures promised
Hong Kong Chief Executive Carrie Lam (林鄭月娥) yesterday pledged HK$10 billion (US$1.3 billion) in new relief measures to prop up the economy, as it grapples with months of pro-democracy protests that have hurt business confidence in the territory. The proposed new spending brings the global financial hub’s total stimulus to HK$35 billion since this summer, when protests escalated and have since taken a heavy economic toll, especially in the tourism and retail sectors.
MEXICO
Chinese loans cover refinery
Chinese banks are providing US$600 million in financing for the construction of a new oil refinery at the Dos Bocas Port in the southeastern state of Tabasco, Chinese Ambassador to Mexico Ambassador Zhu Qingqiao (祝青橋) told reporters on Monday. The Industrial and Commercial Bank of China (中國工商銀行) and the Bank of China (中國銀行) are participating in financing for the refinery, one of President Andres Manuel Lopez Obrador’s flagship infrastructure projects, Zhu said. It was unclear what kind of financing the banks would provide for the project.
RETAIL
SML Group seeks buyer
SML Group Ltd, a closely held garment label maker for fashion brands and retailers globally, is exploring a sale of the business that could fetch about US$500 million, people familiar with the matter said. Hong Kong-based SML is working with Citigroup Inc to seek a buyer for the business, the people said. The company makes woven and printed labels, price tickets, hangtags, and zippers and buttons, its Web site said.
TELECOMS
Vodacom in talks with Cell C
Vodacom Group Ltd is in talks with Cell C Pty Ltd about taking on the smaller rival’s contract-paying mobile phone subscribers, a move that would strengthen its position as South Africa’s telecom market leader, people familiar with the matter said. The unit of the UK-based Vodafone Group PLC would gain about 1 million high-paying subscribers from the deal, the people said. The carrier could also cut jobs and close some stores after slimming down operations, they said.
UNITED KINGDOM
Flight tax cut to help Flybe
The government could cut air passenger taxes on all domestic flights to help rescue struggling regional airline Flybe, the BBC reported yesterday. British Chancellor of the Exchequer Sajid Javid is to meet later with representatives from the Department for Transport and Department for Business, Energy and Industrial Strategy to discuss the tax and a possible deferring of Flybe’s bill, the corporation said. A possible deal could allow Flybe to defer a payment of more than ￡100 million (US$129.72 million) for three years, Sky News said.
STOCK MARKETS
Yum China eyes HK listing
Yum China Holdings Inc (百勝中國控股) is working with China International Capital Corp (中國國際金融) and Goldman Sachs Group Inc on preparations of its proposed second listing in Hong Kong, people familiar with the matter said. The operator of Pizza Hut and KFC restaurants in China is working with the banks on the share sale, which could take place as soon as this year, the people said. Yum China is considering a listing in Hong Kong that could raise as much as US$2 billion, International Financing Review reported last week, citing unidentified people.
Shares of contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) came under pressure yesterday after a report that Apple Inc is looking to shift some orders from the Taiwanese company to Intel Corp. TSMC shares fell NT$55, or 2.4 percent, to close at NT$2,235 on the local main board, Taiwan Stock Exchange data showed. Despite the losses, TSMC is expected to continue to benefit from sound fundamentals, as it maintains a lead over its peers in high-end process development, analysts said. “The selling was a knee-jerk reaction to an Intel-Apple report over the weekend,” Mega International Investment Services Corp (兆豐國際投顧) analyst Alex Huang
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to remain Apple Inc’s primary chip manufacturing partner despite reports that Apple could shift some orders to Intel Corp, industry experts said yesterday. The comments came after The Wall Street Journal reported on Friday that Apple and Intel had reached a preliminary agreement following more than a year of negotiations for Intel to manufacture some chips for Apple devices. Taiwan Institute of Economic Research (台灣經濟研究院) economist Arisa Liu (劉佩真) said TSMC’s advanced packaging technologies, including integrated fan-out and chip-on-wafer-on-substrate, remain critical to the performance of Apple’s A-series and M-series chips. She said Intel and Samsung
TRANSITION: With the closure, the company would reorganize its Taiwanese unit to a sales and service-focused model, Bridgestone said Bridgestone Corp yesterday announced it would cease manufacturing operations at its tire plant in Hsinchu County’s Hukou Township (湖口), affecting more than 500 workers. Bridgestone Taiwan Co (台灣普利司通) said in a statement that the decision was based on the Tokyo-based tire maker’s adjustments to its global operational strategy and long-term market development considerations. The Taiwanese unit would be reorganized as part of the closure, effective yesterday, and all related production activities would be concluded, the statement said. Under the plan, Bridgestone would continue to deepen its presence in the Taiwanese market, while transitioning to a sales and service-focused business model, it added. The Hsinchu
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has approved a capital budget of US$31.28 billion for production expansion to meet long-term development needs during the artificial intelligence (AI) boom. The company’s board meeting yesterday approved the capital appropriation plan for purposes such as the installation of advanced technology capacity and fab construction, the world’s largest contract chipmaker said in a statement. At an earnings conference last month, TSMC forecast that its capital expenditure for this year would be at the higher end of the US$52 billion to US$56 billion range it forecast in January in response to robust demand for 5G, AI and
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