GERMANY
Economic growth slows
The economy expanded at the slowest pace in six years last year, when manufacturing took a battering and the country was dragged to the brink of a recession. Expansion was just 0.6 percent amid trade tensions and a broader slowdown in demand that added to fundamental structural challenges the country is battling. Automakers including Volkswagen AG are facing a critical period as they push sales of electric vehicles, while manufacturers such as Siemens AG are under pressure to adapt to climate change. Geopolitical uncertainty in the Middle East and continued risk of a disruptive Brexit are also weighing on sentiment and momentum. That means while last year was a year Germany will want to forget, the outlook for this year is barely any better. Economists see growth accelerating to only 0.7 percent this year.
CHINA
Holiday cash infusion
The nation added liquidity to the financial system yesterday, helping to offset a cash squeeze ahead of the Lunar New Year holiday. It kept interest rates on the loans unchanged. The People’s Bank of China added 300 billion yuan (US$43.56 billion) through the medium-term lending facility at 3.25 percent, according to a statement from the central bank. It also injected 100 billion yuan through open market operations after a 15-day hiatus, selling 14-day reverse repurchase agreements at 2.65 percent. Some 257.5 billion yuan of targeted medium-term loans are to mature on Thursday next week. “The liquidity injection from the previous RRR [required rate of return] cut wasn’t enough to fill the gap in January because of the earlier Chinese New Year holiday season, heavy bond issuance and tax payment,” Oversea-Chinese Banking Corp economist Tommy Xie (謝東明) said. “The offering is not a surprise.”
SOUTH KOREA
Employment at record high
The employment rate hit a record high last year, offering President Moon Jae-in evidence that he is delivering on his pledge to provide more jobs, ahead of a parliamentary election. The employment rate climbed to 60.9 percent last year, matching a previous high set in 1997, statistics office data showed yesterday. At first glance, the rate, boosted by an increase in part-time work, appears to contradict the view among Moon’s opponents and some economists that his policies, including a higher minimum wage strategy, have priced people out of work. Still, the jobs growth relied heavily on part-time and elderly workers, a fact which casts doubt on the real strength of the recovery in the labor market and its effectiveness in boosting consumption.
BRAZIL
OECD membership coming
The government on Tuesday welcomed the US’ change of stance to support its bid to join the Organisation for Economic Co-operation and Development (OECD) ahead of Argentina. The US plans are a win for President Jair Bolsonaro, who has sought closer ties with Washington since taking office last year. Backing Brazil’s path to joining the OECD had been seen by many as a tangible benefit of the ideological similarities between Bolsonaro and US President Donald Trump, who have sought to cast aside years of trade spats and political distrust between their two nations, and build a tighter relationship. OECD membership is seen as a stamp of approval that would boost investor confidence in the government and economy.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Chizuko Kimura has become the first female sushi chef in the world to win a Michelin star, fulfilling a promise she made to her dying husband to continue his legacy. The 54-year-old Japanese chef regained the Michelin star her late husband, Shunei Kimura, won three years ago for their Sushi Shunei restaurant in Paris. For Shunei Kimura, the star was a dream come true. However, the joy was short-lived. He died from cancer just three months later in June 2022. He was 65. The following year, the restaurant in the heart of Montmartre lost its star rating. Chizuko Kimura insisted that the new star is still down
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors
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