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.
Taiwan’s foreign exchange reserves hit a record high at the end of last month, surpassing the US$600 billion mark for the first time, the central bank said yesterday. Last month, the country’s foreign exchange reserves rose US$5.51 billion from a month earlier to reach US$602.94 billion due to an increase in returns from the central bank’s portfolio management, the movement of other foreign currencies in the portfolio against the US dollar and the bank’s efforts to smooth the volatility of the New Taiwan dollar. Department of Foreign Exchange Director-General Eugene Tsai (蔡炯民)said a rate cut cycle launched by the US Federal Reserve
Handset camera lens maker Largan Precision Co (大立光) on Sunday reported a 6.71 percent year-on-year decline in revenue for the third quarter, despite revenue last month hitting the highest level in 11 months. Third-quarter revenue was NT$17.68 billion (US$581.2 million), compared with NT$18.95 billion a year earlier, the company said in a statement. The figure was in line with Yuanta Securities Investment Consulting Co’s (元大投顧) forecast of NT$17.9 billion, but missed the market consensus estimate of NT$18.97 billion. The third-quarter revenue was a 51.44 percent increase from NT$11.67 billion in the second quarter, as the quarter is usually the peak
The US government on Wednesday sanctioned more than two dozen companies in China, Turkey and the United Arab Emirates, including offshoots of a US chip firm, accusing the businesses of providing illicit support to Iran’s military or proxies. The US Department of Commerce included two subsidiaries of US-based chip distributor Arrow Electronics Inc (艾睿電子) on its so-called entity list published on the federal register for facilitating purchases by Iran’s proxies of US tech. Arrow spokesman John Hourigan said that the subsidiaries have been operating in full compliance with US export control regulations and his company is discussing with the US Bureau of
Pegatron Corp (和碩), a key assembler of Apple Inc’s iPhones, on Thursday reported a 12.3 percent year-on-year decline in revenue for last quarter to NT$257.86 billion (US$8.44 billion), but it expects revenue to improve in the second half on traditional holiday demand. The fourth quarter is usually the peak season for its communications products, a company official said on condition of anonymity. As Apple released its new iPhone 17 series early last month, sales in the communications segment rose sequentially last month, the official said. Shipments to Apple have been stable and in line with earlier expectations, they said. Pegatron shipped 2.4 million notebook
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