MALAYSIA
New stimulus tops US$57bn
The government yesterday announced a stimulus package worth 250 billion ringgit (US$57.54 billion), its second in a month, to help cushion the economic blow from the COVID-19 pandemic. The package largely includes one-off payments and discounts on utilities for people whose livelihoods have been affected by the pandemic, and to help small and medium-sized enterprises stay afloat and retain their staff. The plan includes a 50 billion ringgit loan scheme for larger companies, which would offer guarantees of up to 80 percent of the sum borrowed to shore up working capital in the corporate sector. About 128 billion ringgit would be spent on public welfare measures, with 100 billion used to support businesses. The package is in addition to a 20 billion ringgit stimulus plan announced last month.
EUROPEAN UNION
‘Corona bonds’ opposed
Germany remains opposed to the idea of so-called “corona bonds” that would pool the debt of 19 eurozone countries in response to the coronavirus crisis, German Chancellor Angela Merkel said on Thursday. Speaking after a video conference with other EU leaders, Merkel rejected the proposal backed by countries including France and Italy. “From the German side and from other sides, we said that this was not the view of all member states,” Merkel said, adding that the existing European Stability Mechanism (ESM) was her “preferred instrument.” She admitted that EU leaders had discussed “whether the ESM contains enough possibilities, and how strong and quick our answer must be.” The existing ESM bailout fund is unpopular in southern European countries such as Italy, as it effectively makes financial aid conditional on economic restructuring.
UNITED STATES
Fed’s balance sheet rising
The Federal Reserve’s balance sheet reached US$5.3 trillion in assets for the first time this week as it scooped up bonds and extended loans to banks, mutual funds and other central banks in its unprecedented effort to backstop the economy in the face of the COVID-19 pandemic. The Fed’s total balance sheet size rose by more than half a trillion dollars in a single week, roughly twice the pace of the next-largest weekly expansion in the financial crisis in October 2008. The Fed bought US$355 billion of Treasuries and mortgage-backed bonds in the last week in what is now an open-ended commitment to stabilize financial markets rocked by the outbreak and the halt in economic activity that has come in its wake.
AIRLINES
Singapore secures funding
Singapore Airlines Ltd said it had secured up to S$19 billion (US$13.24 billion) of funding to help see it through the coronavirus crisis and expand afterward, in a sign of confidence travel demand would eventually return. The airline’s majority shareholder, state-fund Temasek Holdings, said it would underwrite the sale of shares and convertible bonds for up to S$15 billion. Singapore’s biggest bank DBS Group Holdings Ltd provided a S$4 billion loan. “This transaction will not only tide [Singapore Airlines] over a short term financial liquidity challenge, but will position it for growth beyond the pandemic,” Temasek International chief executive Dilhan Pillay Sandrasegara said. The airline, a major customer for Airbus SE and Boeing Co, has cut capacity by 96 percent and grounded almost its entire fleet after the Singaporean government banned foreign transit passengers.
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