AUSTRALIA
Business sentiment slumps
Business sentiment tumbled last month as Sydney’s outbreak of the Delta variant of SARS-CoV-2 forced even tighter stay-at-home orders and leaks of COVID-19 prompted snap lockdowns in other major cities. Business confidence slumped to minus-8 points from plus-11 points in June, National Australia Bank Ltd said in a statement yesterday. The conditions index — measuring hiring, sales and profits — dropped to 11 points from a revised 25 points. The survey ran from July 20 to July 30. The result showed “optimism collapsing on the back of ongoing restrictions,” National Australia Bank chief economist Alan Oster said. “The fear is that lower capacity utilization and a fading pipeline on work may see businesses pull back on hiring and investment intentions.”
INTERNET
Golden Nugget deal agreed
Sports betting Web site DraftKings Inc is buying the online gambling subsidiary of Golden Nugget Inc in a stock deal valued at US$1.56 billion, the two companies said on Monday. The acquisition of Golden Nugget Online Gaming gives Boston-based DraftKings a well-known brand in the casino and gambling world, and adds more than 5 million customers to DraftKings iGaming accounts, a statement from the companies said. DraftKings expects to use the combined resources to boost sales and market share, the companies said. The deal, which has been approved by both companies’ boards, is expected to close in the first quarter of next year.
HOSPITALITY
IHG back in the black
InterContinental Hotels Group (IHG) PLC yesterday announced a return to profit as vaccination rollouts and the lifting of lockdowns boosted travel demand. IHG, whose brands also include Crowne Plaza and Holiday Inn, reported a net profit of US$48 million for the first half of the year, compared with a net loss of US$210 million in the same period last year. IHG chief executive Keith Barr said in an earnings statement that domestic leisure bookings in the US and China had led the way.
AIRLINES
Etihad posts US$400m loss
Abu Dhabi’s national carrier Etihad yesterday reported a core operating loss of US$400 million for the first half of the year, driven by a 68 percent drop in passenger revenue as the contagious Delta variant of SARS-CoV-2 spreads across the globe. The figure — although half of the US$800 million loss reported amid the devastation of the COVID-19 pandemic in the first half of last year — reflects the continued uncertain outlook for international travel. Over the past six months, the airline carried 1 million passengers who on average filled 24.9 percent of plane seats, down from 3.5 million passengers and 71 percent of seats filled in the first half of last year.
AUTOMAKERS
Tesla China deliveries fall
Tesla Inc deliveries of China-made vehicles to the local market fell sharply last month following a run of negative publicity that culminated in the recall of almost every vehicle the California-based company has sold in China. The automaker reported domestic China shipments of just 8,621 vehicles, a 69 percent plunge from June when Tesla’s Shanghai factory delivered 28,138 vehicles to the local market. However, exports soared to 24,347 vehicles versus 5,017, with most of those destined for Europe. That meant overall Tesla China shipments last month decreased just 0.6 percent to 32,968 vehicles.
Taiwan will prioritize the development of silicon photonics by taking advantage of its strength in the semiconductor industry to build another shield to protect the local economy, National Development Council (NDC) Minister Paul Liu (劉鏡清) said yesterday. Speaking at a meeting of the legislature’s Economics Committee, Liu said Taiwan already has the artificial intelligence (AI) industry as a shield, after the semiconductor industry, to safeguard the country, and is looking at new unique fields to build more economic shields. While Taiwan will further strengthen its existing shields, over the longer term, the country is determined to focus on such potential segments as
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
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
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