CHINA
Goldman cuts GDP forecast
Goldman Sachs Group Inc cut its economic growth forecast sharply for next year, predicting Beijing will stick to its stringent “zero COVID-19” policies through at least the first quarter of next year. GDP is likely to increase 4.5 percent next year, down from a previous projection of 5.3 percent, Goldman economists wrote in a report. There was no change to the prediction of a 3 percent expansion this year. On the property market, Goldman said Beijing’s mantra of “housing is for living in, not for speculation” is unlikely to change after the Chinese Communist Party’s congress next month. Major easing of property restrictions is unlikely, the economists said.
BANKING
Lender to split unit
Credit Suisse Group AG has drawn up plans to split its investment bank in three, the Financial Times reported yesterday, as the Swiss lender attempts to emerge from three years of relentless scandals. Under proposals to the board, the bank is looking to sell profitable units such as its securitized products business to prevent a damaging capital raise, the report said, citing people familiar with the plans. The proposals could see the investment bank split into three parts: the group’s advisory business, which might be spun off at a later point; a “bad bank” to hold high-risk assets that would be wound down; and the rest of the business.
TECHNOLOGY
UK to probe cloud services
The UK yesterday said it would investigate competition in cloud services, a market dominated by the “hyperscalers” Amazon.com Inc, Microsoft Corp and Alphabet Inc’s Google, which together account for about 81 percent of revenue. Communications regulator Ofcom also said that it would examine other digital markets over the next year, including messaging services such as WhatsApp, FaceTime and Zoom, and connected televisions and smart speakers. It said if it concluded the cloud market was not working well, it could recommend policy changes, take enforcement action or ask the competition regulator to investigate.
TECHNOLOGY
Kittyhawk to close down
Kittyhawk, the air-taxi company backed by billionaire Google cofounder Larry Page, is set to shut down, dealing a setback to the long-elusive dream of developing flying cars. “We have made the decision to wind down Kittyhawk,” the company said on Twitter. “We’re still working on the details of what’s next.” The company’s technology is expected to live on in the form of its Wisk Aero joint venture with Boeing Co. Wisk’s operations would not be affected by Kittyhawk’s shutdown, Boeing said on Wednesday. The Wisk venture with Boeing was formed in 2019.
TECHNOLOGY
Meta fined for breach
A US jury on Wednesday ordered Meta Platforms Inc to pay US$174.5 million for breaching livestreaming patents developed by a US Army veteran seeking to fix shortcomings in battlefield communications. A trial in Texas federal court ended with jurors deciding that “live” features at Facebook and Instagram used technology patented by Voxer, a company cofounded by Tom Katis, legal documents showed. “We believe the evidence at trial demonstrated that Meta did not infringe Voxer’s patents,” a company spokesperson said in response to an inquiry. “We intend to seek further relief, including filing an appeal.”
French President Emmanuel Macron told a global artificial intelligence (AI) summit in India yesterday he was determined to ensure safe oversight of the fast-evolving technology. The EU has led the way for global regulation with its Artificial Intelligence Act, which was adopted in 2024 and is coming into force in phases. “We are determined to continue to shape the rules of the game... with our allies such as India,” Macron said in New Delhi. “Europe is not blindly focused on regulation — Europe is a space for innovation and investment, but it is a safe space.” The AI Impact Summit is the fourth
CONFUSION: Taiwan, Japan and other big exporters are cautiously monitoring the situation, while analysts said more Trump responses ate likely after his loss in court US trading partners in Asia started weighing fresh uncertainties yesterday after President Donald Trump vowed to impose a new tariff on imports, hours after the Supreme Court struck down many of the sweeping levies he used to launch a global trade war. The court’s ruling invalidated a number of tariffs that the Trump administration had imposed on Asian export powerhouses from China and South Korea to Japan and Taiwan, the world’s largest chip maker and a key player in tech supply chains. Within hours, Trump said he would impose a new 10 percent duty on US imports from all countries starting on
STRATEGIC ALLIANCE: The initiative is aimed at protecting semiconductor supply chain resilience to reduce dependence on China-dominated manufacturing hubs India yesterday joined a US-led initiative to strengthen technology cooperation among strategic allies in a move that underscores the nations’ warming ties after a brief strain over New Delhi’s unabated purchase of discounted Russian oil. The decision aligns India closely with Washington’s efforts to build secure supply chains for semiconductors, advanced manufacturing and critical technologies at a time when geopolitical competition with China is intensifying. It also signals a reset in relations following friction over energy trade and tariffs. Nations that have joined the Pax Silica framework include Japan, South Korea, the UK and Israel. “Pax Silica will be a group of nations
South Korea’s equity benchmark yesterday crossed a new milestone just a month after surpassing the once-unthinkable 5,000 mark as surging global memory demand powers the country’s biggest chipmakers. The KOSPI advanced as much as 2.6 percent to a record 6,123, with Samsung Electronics Co and SK Hynix Inc each gaining more than 2 percent. With the benchmark now up 45 percent this year, South Korea’s stock market capitalization has also moved past France’s, following last month’s overtaking of Germany’s. Long overlooked by foreign funds, despite being undervalued, South Korean stocks have now emerged as clear winners in the global market. The so-called “artificial intelligence
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