UNITED STATES
Slowdown ‘required’: Fed
A slowdown of economic growth and the job market will be “required” to bring down inflation, the Federal Reserve said in notes released on Wednesday, adding that prices remain “unacceptably high.” Fed officials also said inflation has “not yet responded” to increased interest rates, according to minutes of the central bank’s meeting last month, and that “a significant reduction in inflation would likely lag that of aggregate demand.” However, some of the Fed officials cited in the minutes also said that “it would be important to calibrate the pace of further policy tightening with the aim of mitigating the risk of significant adverse effects on the economic outlook.”
NEW ZEALAND
Houses taking longer to sell
Houses are taking longer to sell as rising interest rates put off buyers and listings decline, resulting in the lowest number of completed transactions in more than a decade. The median time to sell a house last month was 47 days, Real Estate Institute of New Zealand data showed yesterday. That is up from 37 days a year earlier and as little as 28 days early last year. House sales fell below 16,000 in the three months through June, the weakest quarter since 2010, CoreLogic New Zealand data showed. Prices have dropped by 12.6 percent from a peak in November last year.
UNITED KINGDOM
Minister blames BOE
Chancellor of the Exchequer Kwasi Kwarteng said that the Bank of England (BOE) would be responsible if British markets suffer renewed volatility after its bond-buying program ends today. Speaking on the sidelines of the IMF’s annual meetings in Washington, Kwarteng told Sky News that any turmoil after the central bank withdraws support “is a matter for the governor.” BOE Governor Andrew Bailey this week underlined his commitment to halting government debt purchases today as planned, both to draw a line under a program that is complicating his efforts to tame inflation and to encourage pension funds to get on with closing their positions.
APPAREL
Fast Retailing issues outlook
Uniqlo owner Fast Retailing Co issued an outlook for profit and sales ahead of analysts’ projections for the current fiscal year, thanks to better demand for its cheap casual apparel in Japan and a weaker yen bolstering profits brought back home from overseas. Operating profit for the year ending August next year is forecast to reach ￥350 billion (US$2.4 billion), the clothing retailer said in a statement yesterday. Net sales are seen at ￥2.65 trillion, compared with analysts’ prediction for ￥2.48 trillion. For the year ended August, operating profit rose to ￥297 billion on net sales of ￥2.3 trillion, the company said, exceeding projections.
FRANCE
Tax hike bill approved
Lawmakers in the National Assembly late on Wednesday voted in favor of an amendment that would raise taxes on large corporation’s dividends paid out on windfall profits. The amendment was voted through by lawmakers from the left, far-right, but also by some of French President Emanuel Macron’s allies in the centrists, who originally proposed it. The government could still block the temporary tax increase with special constitutional powers to quash amendments before a final vote on the whole 2023 budget bill in both houses of parliament.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
Taiwan’s food delivery market could undergo a major shift if Singapore-based Grab Holdings Ltd completes its planned acquisition of Delivery Hero SE’s Foodpanda business in Taiwan, industry experts said. Grab on Monday last week announced it would acquire Foodpanda’s Taiwan operations for US$600 million. The deal is expected to be finalized in the second half of this year, with Grab aiming to complete user migration to its platform by the first half of next year. A duopoly between Uber Eats and Foodpanda dominates Taiwan’s delivery market, a structure that has remained intact since the Fair Trade Commission (FTC) blocked Uber Technologies Inc’s
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