TECHNOLOGY
Sony, NTT snub tech show
Two big Japanese companies have become the latest to pull out of a major European technology show due to fears over the 2019 novel coronavirus outbreak. Electronics manufacturer Sony Corp and mobile phone carrier NTT DoCoMo Inc on Monday said that they were scrapping their appearances at Mobile World Congress, the world’s biggest mobile industry trade fair, in Barcelona, Spain, this month. Intel Corp and MediaTek Inc (聯發科) have also pulled out of the show. The GSMA, which organizes the gathering, said it is going ahead on Feb. 24 regardless of the cancelations.
HARDWARE
Xerox increases HP offer
Xerox Holdings Corp is to increase its offer price for HP Inc to US$24 a share, boosting the bid by US$2 a share in an effort to win control of the computer hardware maker, which has previously refused to engage in takeover talks because it said the offer was too low. Xerox said in a statement on Monday that it plans to launch a tender offer “on or around March 2” comprised of US$18.40 in cash and 0.149 Xerox shares for each HP share. The offer would not be subject to any conditions related to financing or due diligence. The offer represents a 41 percent premium to HP’s 30-day volume-weighted average trading price of US$17.
AUTOMAKERS
Toyota issues green bond
Toyota Motor Corp borrowed US$2.5 billion through its finance company to help support the sale of clean vehicles, marking the first US corporate green bond deal this year. Toyota Motor Credit Corp sold the debt in three parts, a person with knowledge of the matter said. Only the 10-year security would be green, and it would yield 65 basis points above US Treasuries, after initially discussing in the high 70s-basis point range, the person said. Toyota capped the green portion of the deal at US$750 million, the person said.
AUTOMAKERS
Volvo, Geely mull merger
Sweden’s Volvo Cars Corp and its Chinese owner Geely Holding Group (吉利控股集團) on Monday said that they are considering merging into a single group to better share technology and financial resources while preserving their separate brands. The merged firm “would have the scale, knowledge and resources to be a leader in the ongoing transformation of the automotive industry,” they said in a statement. “The combination would preserve the distinct identity of each of the brands Volvo, Geely, Lynk & Co and Polestar,” they added.
MINERS
AngloGold determines buyer
AngloGold Ashanti Ltd has picked Harmony Gold Mining Co as the buyer for its last remaining South African operations, people familiar with the matter have said. The two companies are finalizing the exact terms of the deal for the Mponeng mine and surface facilities, said the people, who asked not to be identified because the information is private.
SOUTH AFRICA
Eskom tariff bid rejected
State power utility Eskom Holdings SOC Ltd’s urgent bid for larger electricity tariff increases was rejected by the Pretoria High Court on Monday, in a fresh setback for the cash-strapped utility. Eskom lodged an urgent application with the court for a tariff increase of 16.6 percent from April and a rise of 16.7 percent from April next year to compensate for what it said was an error by the National Energy Regulator of South Africa.
China’s economic planning agency yesterday outlined details of measures aimed at boosting the economy, but refrained from major spending initiatives. The piecemeal nature of the plans announced yesterday appeared to disappoint investors who were hoping for bolder moves, and the Shanghai Composite Index gave up a 10 percent initial gain as markets reopened after a weeklong holiday to end 4.59 percent higher, while Hong Kong’s Hang Seng Index dived 9.41 percent. Chinese National Development and Reform Commission Chairman Zheng Shanjie (鄭珊潔) said the government would frontload 100 billion yuan (US$14.2 billion) in spending from the government’s budget for next year in addition
Advanced Micro Devices Inc (AMD) suffered its biggest stock decline in more than a month after the company unveiled new artificial intelligence (AI) chips, but did not provide hoped-for information on customers or financial performance. The stock slid 4 percent to US$164.18 on Thursday, the biggest single-day drop since Sept. 3. Shares of the company remain up 11 percent this year. AMD has emerged as the biggest contender to Nvidia Corp in the lucrative market of AI processors. The company’s latest chips would exceed some capabilities of its rival, AMD chief executive officer Lisa Su (蘇姿丰) said at an event hosted by
AVIATION: Despite production issues in the US, the Taoyuan-based airline expects to receive 24 passenger planes on schedule, while one freight plane is delayed The ongoing strike at Boeing Co has had only a minor impact on China Airlines Ltd (CAL, 中華航空), although the delivery of a new cargo jet might be postponed, CAL chairman Hsieh Su-chien (謝世謙) said on Saturday. The 24 Boeing 787-9 passenger aircraft on order would be delivered on schedule from next year to 2028, while one 777F freight aircraft would be delayed, Hsieh told reporters at a company event. Boeing, which announced a decision on Friday to cut 17,000 jobs — about one-tenth of its workforce — is facing a strike by 33,000 US west coast workers that has halted production
TECH JUGGERNAUT: TSMC shares have more than doubled since ChatGPT’s launch in late 2022, as demand for cutting-edge artificial intelligence chips remains high Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted a better-than-expected 39 percent rise in quarterly revenue, assuaging concerns that artificial intelligence (AI) hardware spending is beginning to taper off. The main chipmaker for Nvidia Corp and Apple Inc reported third-quarter sales of NT$759.69 billion (US$23.6 billion), compared with the average analyst projection of NT$748 billion. For last month alone, TSMC reported revenue jumped 39.6 percent year-on-year to NT$251.87 billion. Taiwan’s largest company is to disclose its full third-quarter earnings on Thursday next week and update its outlook. Hsinchu-based TSMC produces the cutting-edge chips needed to train AI. The company now makes more
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