THAILAND
Benchmark rate unchanged
The Bank of Thailand yesterday left its benchmark interest rate unchanged after an emergency cut last week, while projecting a sharp contraction in the economy this year because of the COVID-19 outbreak. The policy rate was maintained at 0.75 percent following a 25 basis-point reduction to a record low at an unscheduled meeting on Friday. The bank slashed its growth projection for this year to a contraction of 5.3 percent from an earlier expectation of 2.8 percent expansion.
CHINA
PBOC could cut rate: report
The People’s Bank of China could announce a reduction in its benchmark deposit rate in the coming days, the Financial Times reported yesterday, citing two people familiar with the matter. The bank is in discussion with commercial lenders on the possible move, the newspaper reported. If it happens, the cut would be the first since late 2015, intended to help improve banks’ profitability and encourage them to lend cheaper funding to businesses and households.
CHINA
US companies pessimistic
US firms in the country are increasingly pessimistic about how quickly they can rebound from the COVID-19 pandemic. Half the 119 US companies surveyed by the American Chamber of Commerce in China said they have had “significant revenue declines,” and more than half said they expect revenue to fall this year if they cannot get back to normal work levels by the end of next month. Only 22 percent of the companies said they are back to normal, while one-quarter expect to be there by the end of next month. Another 22 percent said they expect further delays through the summer.
INVESTMENT
BlackRock to advise Fed
BlackRock Inc, the world’s largest asset manager, would serve as an investment adviser and manage assets for three separate programs in the US Federal Reserve’s debt-buying programs to revive an economy reeling from the spread of coronavirus, the US central bank said on Tuesday. Those include Fed’s plans to buy newly issued credit from large corporations, as well as existing investment-grade bonds and credit exchange-traded funds.
BANKING
Ex-CEO gets 15% pay cut
Credit Suisse Group AG cut former chief executive officer Tidjane Thiam’s pay by about 15 percent in his last year in charge, after the Swiss bank became embroiled in a spying scandal that led to his ouster. His total compensation declined to 10.7 million Swiss francs (US$10.9 million), Credit Suisse said in a compensation report published yesterday. Credit Suisse’s overall bonus pool was reduced by 1 percent from a year earlier to SF3.17 billion.
AUTOMAKERS
Detroit eyes long shutdown
Detroit’s Big Three automakers plan to extend a shutdown of vehicle production in North America into next month as the pandemic continues, people briefed on the matter said on Tuesday. The firms had said on Wednesday last week that they would halt production until at least Monday next week. Two people briefed on the matter said that Ford Motor Co does not plan to restart production until at least April 6, but said that it could be delayed into next month. General Motors Co and Fiat Chrysler Automobiles NV also do not plan to resume production on Monday next week, the people said.
Taiwan Transport and Storage Corp (TTS, 台灣通運倉儲) yesterday unveiled its first electric tractor unit — manufactured by Volvo Trucks — in a ceremony in Taipei, and said the unit would soon be used to transport cement produced by Taiwan Cement Corp (TCC, 台灣水泥). Both TTS and TCC belong to TCC International Holdings Ltd (台泥國際集團). With the electric tractor unit, the Taipei-based cement firm would become the first in Taiwan to use electric vehicles to transport construction materials. TTS chairman Koo Kung-yi (辜公怡), Volvo Trucks vice president of sales and marketing Johan Selven, TCC president Roman Cheng (程耀輝) and Taikoo Motors Group
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
RECORD-BREAKING: TSMC’s net profit last quarter beat market expectations by expanding 8.9% and it was the best first-quarter profit in the chipmaker’s history Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which counts Nvidia Corp as a key customer, yesterday said that artificial intelligence (AI) server chip revenue is set to more than double this year from last year amid rising demand. The chipmaker expects the growth momentum to continue in the next five years with an annual compound growth rate of 50 percent, TSMC chief executive officer C.C. Wei (魏哲家) told investors yesterday. By 2028, AI chips’ contribution to revenue would climb to about 20 percent from a percentage in the low teens, Wei said. “Almost all the AI innovators are working with TSMC to address the