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.
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.
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.
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.
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.”
Apple Inc might make one out of four iPhones in India by 2025, JPMorgan & Chase Co analysts said yesterday, as the tech giant moves some production away from China, amid mounting geopolitical tensions and strict COVID-19 lockdowns in the country. JPMorgan expects Apple to move about 5 percent of iPhone 14 production from late this year to India, which is the second-biggest smartphone market in the world after China. It is also estimating that about 25 percent of all Apple products, including Mac, iPad, Apple Watch and AirPods, would be manufactured outside China by 2025 from 5 percent currently. The US company
HEADING SOUTH: The US company chose Kaohsiung as its site as more customers, partners and start-ups have expanded their operations to the southern city Qualcomm Inc yesterday inaugurated a new innovation center in Kaohsiung as it steps up efforts to foster local start-ups and a 5G technology ecosystem in the city, following in the footsteps of its local partners. The US chip company’s move fits the Kaohsiung City Government’s plan to build a semiconductor supply chain within the next five years, highlighted by Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) first chip plant in the city. TSMC plans to start building the factory by the end of this year, and to start production of 28-nanometer and 7-nanometer chips there in 2024. Qualcomm said it had been
SLUMPING DEMAND: Inventory has climbed by up to 12 weeks as suppliers are under mounting pressure to offload excessive reserves, a TrendForce report said The price of DRAM chips is expected to fall at a steeper rate of 13 to 18 percent next quarter, as high inflation continues to weigh on demand for consumer electronics, causing chip inventories to soar, market researcher TrendForce Corp (集邦科技) said yesterday. The downtrend in DRAM prices could extend from a quarterly decline of 10 to 15 percent in the third quarter, the Taipei-based researcher said. “Demand for consumer electronics continued to stagnate during the third quarter, which used to be a high demand season,” TrendForce said in a statement. “During the quarter, memorychip consumption and shipments both showed quarterly
GlaxoSmithKline (GSK) in July made its consumer health products division a separate entity as it transforms into a world-leading biopharmaceutical company. By uniting science, technology and talent, the company is aiming to prevent and treat diseases with innovative vaccines, specialty pharmaceuticals and general medicines. GSK’s headquarters annually invests NT$192 billion (US$6.07 billion) in research and development, focusing on immune science and advanced technologies in human genetics. GSK’s drug and vaccine development focuses on infectious diseases, HIV, oncology and immunology. Investing in clinical trial research each year, GSK also brings drug development to Taiwan. It cooperates with 17 medical institutes and research