UNITED STATES
Fed poll sees faster growth
The economy grew at a somewhat faster pace in April and last month, despite disruptions that choked supplies to the nation’s manufacturers, the Federal Reserve reported on Wednesday. In the Fed’s latest survey of economic conditions around the nation, known as the “beige book,” several of the central bank’s districts reported that increased vaccination rates and relaxed social distancing measures were having a positive impact on the economy. However, offsetting those gains were headwinds coming from supply chain problems, the report said, adding that the supply chain disruptions added to price pressures. The report is to form the basis of discussion when Fed policymakers meet on June 15 to 16 to decide interest rate trends.
SHIPPING
Ships avoid virus-hit port
The world’s shipping lines are avoiding a key port in China hit by a COVID-19 outbreak, causing increased congestion at other seaports across the nation that could delay the delivery of goods to the US and Europe. Tightened health and safety checks have caused congestion and reduced productivity at the port of Yantian, prompting the cancelation of calls there, a notice from Mediterranean Shipping Co on Wednesday said. The port in Shenzhen stopped accepting export-bound container boxes last week and suspended three berths after a COVID-19 cluster emerged among the port staff and broader community. Shenzhen is the world’s fourth-busiest container port.
TRADE
UK, Australia hold talks
Britain is seeking to remove a 5 percent tariff on exports of Scotch whisky to Australia in an upcoming trade deal, British Secretary of State for International Trade Liz Truss said yesterday. “A UK-Australia trade agreement would be significant for Scotch whisky and the Union,” she said in a statement. Britain and Australia held another round of talks to progress a free-trade deal, the British High Commissioner to Australia Vicki Treadell said in Canberra, as they seek to strike an agreement in the middle of this month. The proposed deal with Australia is the most advanced of several pacts London is pursuing.
MEXICO
Economy to grow 6%: bank
The COVID-19 pandemic-hit economy is expected to grow by 6 percent this year, the Bank of Mexico said on Wednesday, upgrading its outlook for the second time since March. The central bank had predicted growth of 4.8 percent for Latin America’s second-largest economy this year. The brighter outlook reflects strong external demand, mainly from the US, as well as an easing of the pandemic in the nation, one of the worst affected by the virus. The economy shrank 8.5 percent last year, in the worst slump since the Great Depression about nine decades ago.
CRYPTOCURRENCY
Google to allow crypto ads
Alphabet Inc’s Google, the world’s largest digital advertising seller, is to allow companies offering cryptocurrency wallets to run ads beginning in August. Starting in August, Google is to let wallets run ads on search, YouTube and other properties as long as they go through the company’s certification process. Google is making the change “in order to better match existing FinCEN regulations and requirements,” a spokesperson said in a statement on Wednesday. In a blog post, Google specified that the ad ban still exists for initial coin offerings and services that aggregate or compare issuers of cryptocurrencies.
In Italy’s storied gold-making hubs, jewelers are reworking their designs to trim gold content as they race to blunt the effect of record prices and appeal to shoppers watching their budgets. Gold prices hit a record high on Thursday, surging near US$5,600 an ounce, more than double a year ago as geopolitical concerns and jitters over trade pushed investors toward the safe-haven asset. The rally is putting undue pressure on small artisans as they face mounting demands from customers, including international brands, to produce cheaper items, from signature pieces to wedding rings, according to interviews with four independent jewelers in Italy’s main
Japanese Prime Minister Sanae Takaichi has talked up the benefits of a weaker yen in a campaign speech, adopting a tone at odds with her finance ministry, which has refused to rule out any options to counter excessive foreign exchange volatility. Takaichi later softened her stance, saying she did not have a preference for the yen’s direction. “People say the weak yen is bad right now, but for export industries, it’s a major opportunity,” Takaichi said on Saturday at a rally for Liberal Democratic Party candidate Daishiro Yamagiwa in Kanagawa Prefecture ahead of a snap election on Sunday. “Whether it’s selling food or
CONCERNS: Tech companies investing in AI businesses that purchase their products have raised questions among investors that they are artificially propping up demand Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday said that the company would be participating in OpenAI’s latest funding round, describing it as potentially “the largest investment we’ve ever made.” “We will invest a great deal of money,” Huang told reporters while visiting Taipei. “I believe in OpenAI. The work that they do is incredible. They’re one of the most consequential companies of our time.” Huang did not say exactly how much Nvidia might contribute, but described the investment as “huge.” “Let Sam announce how much he’s going to raise — it’s for him to decide,” Huang said, referring to OpenAI
The global server market is expected to grow 12.8 percent annually this year, with artificial intelligence (AI) servers projected to account for 16.5 percent, driven by continued investment in AI infrastructure by major cloud service providers (CSPs), market researcher TrendForce Corp (集邦科技) said yesterday. Global AI server shipments this year are expected to increase 28 percent year-on-year to more than 2.7 million units, driven by sustained demand from CSPs and government sovereign cloud projects, TrendForce analyst Frank Kung (龔明德) told the Taipei Times. Demand for GPU-based AI servers, including Nvidia Corp’s GB and Vera Rubin rack systems, is expected to remain high,
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