CHIPMAKERS
Hynix quarantines 800
South Korean chipmaker SK Hynix Inc yesterday said that 800 of its workers had quarantined themselves as a precautionary measure to prevent the spread of COVID-19, but its production in the city of Icheon, South Korea, has not been affected. The move came after one trainee had close contact with a virus patient in the southeastern city of Daegu, the center of an outbreak in South Korea. SK Hynix, the world’s No. 2 memorychip maker, said that another trainee also had symptoms of pneumonia and was being tested at a nearby hospital.
INDONESIA
Central bank cuts rate
The central bank yesterday cut its benchmark interest rate after a three-month pause as the spread of COVID-19 threatens growth in Southeast Asia’s biggest economy. Bank Indonesia lowered the seven-day reverse repurchase rate by 25 basis points to 4.75 percent, joining a string of other central banks around the region that have eased policy to counter the impact of the virus. It also lowered its forecast for global growth to 3 percent from 3.1 percent, and forecast the domestic economy expanding 5 percent to 5.4 percent this year.
ENERGY
Petrobras posts record profit
Brazilian oil giant Petrobras on Wednesday said it made a record net profit last year, shaking off the lingering effects of a massive corruption scandal. The state-run company reported a net profit of 40.1 billion reals (US$9.19 billion) last year, up 55.7 percent from the previous year. It was the second consecutive year of profit for Petrobras, which had spent the three previous years deep in the red. It said the profit was thanks to low production costs and an asset sell-off that netted it US$16.3 billion last year.
AUSTRALIA
Jobless rate climbs
The jobless rate last month unexpectedly climbed despite a surge in full-time employment, as more people hunted for work. Unemployment rose to 5.3 percent last month, compared with economists’ estimate of 5.2 percent, data from the Australian Bureau of Statistics showed yesterday. The participation rate increased to 66.1 percent and 13,500 jobs were added last month, slightly exceeding forecasts. Full-time jobs climbed by 46,200, while part-time roles fell by 32,700, data showed.
AVIATION
Airbus to cut 2,300 jobs
European plane maker Airbus SE on Wednesday said that it plans to cut more than 2,300 jobs at its defense and space division by the end of next year, spreading the cuts across several countries. The company said that Airbus Defence and Space presented the plan to employee representatives and launched a consultation process for the cuts. The plan would eliminate 2,362 positions in all — 829 in Germany, 357 in the UK, 630 in Spain, 404 in France and 142 elsewhere.
BANKING
UBS names new CEO
UBS Group AG has named ING Group CEO Ralph Hamers to succeed Sergio Ermotti as head of the Swiss banking giant. The Dutchman is to join UBS as a member of the bank’s executive board on Sept. 1 “in order to ensure a smooth leadership transition” before taking over the reins as chief executive officer on Nov. 1. Hamers, 53, joined ING Group in 1991 and has been chief executive since 2013.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
Her white-gloved, waistcoated uniform impeccable, 22-year-old Hazuki Okuno boards a bullet train replica to rehearse the strict protocols behind the smooth operation of a Japanese institution turning 60 Tuesday. High-speed Shinkansen trains began running between Tokyo and Osaka on Oct. 1, 1964, heralding a new era for rail travel as Japan grew into an economic superpower after World War II. The service remains integral to the nation’s economy and way of life — so keeping it dazzlingly clean, punctual and accident-free is a serious job. At a 10-story, state-of-the-art staff training center, Okuno shouted from the window and signaled to imaginary colleagues, keeping
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