GERMANY
Sentiment sinks over war
The mood of consumers has plunged to an all-time low as the Russian invasion of Ukraine saps confidence in Europe’s largest economy, a key survey published yesterday found. Pollster GfK’s forward-looking barometer fell to minus-26.5 points for next month from a revised minus-15.7 points this month. The drop represents “a new historic low,” GfK said in a statement. “The war in Ukraine and high inflation have dealt a serious blow to consumer sentiment,” GfK consumer expert Rolf Buerkl said. “This has put an end to hopes of a recovery as a result of the easing of [COVID-19] pandemic-related restrictions,” he said.
AUSTRALIA
Inflation rises to 2001 high
The country’s annual inflation rate hit 5.1 percent in the first quarter, the highest recorded since 2001, official data released yesterday showed. The jump in consumer prices — driven by fuel and housing costs — was even higher than analysts’ expectations and has increased speculation that the central bank might raise interest rates as early as next week. The last time that the Reserve Bank of Australia raised rates during an election period was in 2007. The inflation spike was due to price shocks beyond the government’s control, including supply chain issues caused by the COVID-19 pandemic and Russia’s invasion of Ukraine, Treasurer Josh Frydenberg said yesterday.
THAILAND
Yearly GDP downgraded
The Ministry of Finance expects economic growth this year to be slower than previously estimated, as the nation faces the impact of accelerating inflation and Russia’s war in Ukraine. It now expects GDP to expand 3.5 percent this year, trimmed from 4 percent predicted in January, Fiscal Policy Office Director-General Pornchai Thiraveja said. The ministry also raised the headline inflation forecast for the year to 5 percent from a previous forecast of 1.9 percent. The authorities are closely following the economic situation, and stand ready to take policy action as needed to support the recovery, he added.
HONG KONG
Virus impacts bourse profit
The territory’s stock exchange yesterday reported its biggest quarterly drop in profits for six years, as tightened Chinese regulations strangled new listings and the territory struggled with its worst-ever COVID-19 outbreak. Hong Kong Exchanges and Clearing announced a net income of HK$2.67 billion (US$340.24 million) for the January-to-March period — 31 percent down year-on-year — with quarterly revenue down 21 percent at HK$4.69 billion. The exchange operator has had four consecutive declines in quarterly profits.
INDIA
Life Insurance IPO slashed
The country has slashed the size of an initial public offering (IPO) by insurance giant Life Insurance Corp of India, but the share issue is still to be the country’s largest to date, with a targeted windfall of US$2.7 billion, regulatory filings showed yesterday. The long-awaited IPO is to open next week, after the government chose to wait out market volatility, the filing said. However, the adverse market conditions forced the government to substantially cut its stake sale from an earlier 5 percent to 3.5 percent. The government is to sell 221 million shares within a price band of 902 to 949 rupees, the prospectus showed.
TECH PARTNERSHIP: The deal with Arizona-based Amkor would provide TSMC with advanced packing and test capacities, a requirement to serve US customers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is collaborating with Amkor Technology Inc to provide local advanced packaging and test capacities in Arizona to address customer requirements for geographical flexibility in chip manufacturing. As part of the agreement, TSMC, the world’s biggest contract chipmaker, would contract turnkey advanced packaging and test services from Amkor at their planned facility in Peoria, Arizona, a joint statement released yesterday said. TSMC would leverage these services to support its customers, particularly those using TSMC’s advanced wafer fabrication facilities in Phoenix, Arizona, it said. The companies would jointly define the specific packaging technologies, such as TSMC’s Integrated
China’s economic planning agency yesterday outlined details of measures aimed at boosting the economy, but refrained from major spending initiatives. The piecemeal nature of the plans announced yesterday appeared to disappoint investors who were hoping for bolder moves, and the Shanghai Composite Index gave up a 10 percent initial gain as markets reopened after a weeklong holiday to end 4.59 percent higher, while Hong Kong’s Hang Seng Index dived 9.41 percent. Chinese National Development and Reform Commission Chairman Zheng Shanjie (鄭珊潔) said the government would frontload 100 billion yuan (US$14.2 billion) in spending from the government’s budget for next year in addition
Sales RecORD: Hon Hai’s consolidated sales rose by about 20 percent last quarter, while Largan, another Apple supplier, saw quarterly sales increase by 17 percent IPhone assembler Hon Hai Precision Industry Co (鴻海精密) on Saturday reported its highest-ever quarterly sales for the third quarter on the back of solid global demand for artificial intelligence (AI) servers. Hon Hai, also known as Foxconn Technology Group (富士康科技集團) globally, said it posted NT$1.85 trillion (US$57.93 billion) in consolidated sales in the July-to-September quarter, up 19.46 percent from the previous quarter and up 20.15 percent from a year earlier. The figure beat the previous third-quarter high of NT$1.74 trillion recorded in 2022, company data showed. Due to rising demand for AI, Hon Hai said its cloud and networking division enjoyed strong sales
Protectionism: US trade chief Katherine Tai said the hikes would help to counter unfair trade practices from China, while boosting domestic clean energy investments US Trade Representative Katherine Tai (戴琪) defended stiff tariff hikes against countries such as China, saying that paired with investment, they were a “legitimate and constructive” tool for reinvigorating domestic industries. Tai’s comments come a week after sharp tariff increases on Chinese electric vehicles (EVs), EV batteries and solar cells took effect — with levies down the line on other products also recently finalized. The latest moves targeting US$18 billion in Chinese goods come weeks before next month’s US presidential election, with Democrats and Republicans pushing a hard line on China as competition between Washington and Beijing intensifies. In an interview on Thursday
RSS