SWEDEN
PM touts sturdy economy
The economy is robust enough to withstand the effects of the energy crunch that has gripped Europe and filtered into Scandinavia, Prime Minister Stefan Lofven said. “We have a very, very strong economy,” Lofven said in an interview in New York on Sunday. “If we have dramatically higher prices in the long term, that will affect consumption, but I don’t think we’re there.” Sweden’s debt to GDP ratio has held below 40 percent even during the COVID-19 crisis and remains one of the lowest in Europe. That measure is set to fall to about 35 percent, Lofven said.
AIRLINES
Lufthansa to issue shares
Europe’s largest airline group, Deutsche Lufthansa AG, hit hard by the COVID-19 pandemic, said on Sunday that it would seek to raise more than 2 billion euros (US$2.34 billion) with a capital increase. The German company said its executive board had agreed to a share issue from tomorrow and “the gross proceeds are expected to amount to 2.140 billion euros.” The transaction, intended to improve its equity position and help repay state aid provided in the course of the pandemic, was underwritten by a syndicate of 14 banks, Lufthansa said.
ELECTRONICS
Merck to invest 3bn euros
Merck KGaA plans to spend more than 3 billion euros through 2025 on its electronics business to capitalize on rising demand for semiconductor and display panel materials. The German company would expand production capacity, bolster research and development spending and is also considering bolt-on acquisitions, it said in a statement yesterday. The company makes materials and technologies for computer chips and display screens, as well as effect pigments — products that are sold to the automotive, printing and cosmetics industries. A global semiconductor shortage has been devastating vehicle production this year.
BANKING
JPMorgan begins expansion
JPMorgan Chase & Co this week plans to launch a digital retail bank in the UK, the first step in the its strategy to expand its consumer business overseas. The operation, called Chase, is today to start with current accounts, a person familiar with the matter said. The product offering would broaden over time with the bank planning to invest “hundreds of millions” in the venture, Sanoke Viswanathan, head of JPMorgan’s International Consumer division, said in an interview with the Financial Times. The US bank agreed to buy UK digital wealth manager Nutmeg Saving and Investment in June, and Viswanathan told the Financial Times that more acquisitions might be considered.
CRYPTOCURRENCIES
Bitcoin ‘threatens’ the planet
Mining for bitcoin generates substantial electronic waste that “represents a growing threat to the environment,” a study said. The average life cycle of the powerful computers used to unearth the units of the world’s leading cryptocurrency is only 1.3 years, report coauthor Alex de Vries said on Friday. De Vries said that this was “extremely short compared to any” other electronic devices such as iPhones. At 30,700 tonnes, the amount of electronic waste generated by bitcoin mining in the 12 months to May was “comparable to the amount of small IT and telecommunication equipment waste produced by a country like the Netherlands,” the report said.
US sports leagues rushed to get in on the multi-billion US dollar bonanza of legalized betting, but the arrest of an National Basketball Association (NBA) coach and player in two sprawling US federal investigations show the potential cost of partnering with the gambling industry. Portland Trail Blazers coach Chauncey Billups, a former Detroit Pistons star and an NBA Hall of Famer, was arrested for his alleged role in rigged illegal poker games that prosecutors say were tied to Mafia crime families. Miami Heat guard Terry Rozier was charged with manipulating his play for the benefit of bettors and former NBA player and
The DBS Foundation yesterday announced the launch of two flagship programs, “Silver Motion” and “Happier Caregiver, Healthier Seniors,” in partnership with CCILU Ltd, Hondao Senior Citizens’ Welfare Foundation and the Garden of Hope Foundation to help Taiwan face the challenges of a rapidly aging population. The foundation said it would invest S$4.91 million (US$3.8 million) over three years to foster inclusion and resilience in an aging society. “Aging may bring challenges, but it also brings opportunities. With many Asian markets rapidly becoming super-aged, the DBS Foundation is working with a regional ecosystem of like-minded partners across the private, public and people sectors
BREAKTHROUGH TECH: Powertech expects its fan-out PLP system to become mainstream, saying it can offer three-times greater production throughput Chip packaging service provider Powertech Technology Inc (力成科技) plans to more than double its capital expenditures next year to more than NT$40 billion (US$1.31 billion) as demand for its new panel-level packaging (PLP) technology, primarily used in chips for artificial intelligence (AI) applications, has greatly exceeded what it can supply. A significant portion of the budget, about US$1 billion, would be earmarked for fan-out PLP technology, Powertech told investors yesterday. Its heavy investment in fan-out PLP technology over the past 10 years is expected to bear fruit in 2027 after the technology enters volume production, it said, adding that the tech would
YEAR-END BOOST: The holiday shopping season in the US and Europe, combined with rising demand for AI applications, is expected to drive exports to a new high, the NDC said Taiwan’s business climate monitor improved last month, transitioning from steady growth for the first time in five months, as robust global demand for artificial intelligence (AI) products and new iPhone shipments boosted exports and corporate sales, the National Development Council (NDC) said yesterday. The council uses a five-color system to measure the nation’s economic state, with “green” indicating steady growth, “red” suggesting a boom and “blue” reflecting a recession. “Yellow-red” and “yellow-blue” suggest a transition to a stronger or weaker condition. The total score of the monitor’s composite index rose to 35 points from a revised 31 in August, ending a four-month
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