AUTOMAKERS
Tesla cuts prices
Tesla Inc has cut the price of several of its models again in a further sign that chief executive officer Elon Musk is willing to sacrifice the automaker’s profitability in the face of rising interest rates that might dent consumer demand. The Austin, Texas-based company said on its Web site that the price of its Model Y long-range all-wheel drive model would decrease by 5.6 percent to US$49,990, while the price of the Model Y Performance would drop by 5.2 percent to US$53,990. The cost of a Model 3 rear-wheel drive would be cut by 4.7 percent to US$39,990. It is the second price cut this month as the automaker seeks to stoke demand.
AUTOMAKERS
Sales in Europe jump
Auto sales in Europe jumped the most since May 2021 as supply of key components including semiconductors continues to improve. Registrations of new vehicles jumped 26 percent last month to 1.42 million, the European Automobile Manufacturers’ Association said yesterday, extending the industry’s growth streak to eight consecutive months. Automakers are benefiting from orders accumulated during the worst of their supply crises and a weak showing in the same month last year. Last month’s gains were especially pronounced in Spain and Italy, where sales expanded 66 percent and 41 percent respectively. In Germany, the region’s largest market, registrations increased 17 percent. Volkswagen AG and Renault SA led gains among major European automakers with respective increases of 35 percent and 27 percent.
BEVERAGES
Heineken gets a boost
Heineken NV’s first quarter was boosted by beer drinkers in Europe even as inflation persists in many key markets, which helped offset a weaker performance in the Asia-Pacific region and Nigeria. Shares in the world’s second-largest brewer rose nearly 4 percent in early trading yesterday after it said that consumers in Europe were still largely accepting higher prices for its beers, which include its namesake brand and more premium offerings such as Birra Moretti, Beavertown and El Aguila. Overall volumes fell 3 percent on an organic basis for the quarter ended last month, below the average analyst estimate for a 1.04 percent decline. Vietnam and Nigeria had tough quarters, but investors were expecting that. Heineken stuck to its outlook for adjusted operating profit to grow organically by mid to high-single digits this year even as chief executive officer Dolf van den Brink warned of cloudy consumer demand for its products.
TECHNOLOGY
El Salvador passes AI bill
Lawmakers from the ruling party in El Savador on Tuesday approved a bill to eliminate for 15 years taxes on companies developing artificial intelligence (AI) and other computer programming work in a bid to make the country a more attractive tech destination. The technology tax cut was championed by Salvadoran President Nayib Bukele, who first touted the legislation late last month. The bill exempts eligible companies from income tax, capital gains and local government taxes, as well as tariff payments on imported goods that technology businesses need. Lawmakers approved the bill with 69 voting in favor among the 84-member unicameral legislature. Bukele’s Nuevas Ideas party holds 56 of the seats.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Meta Platforms Inc offered US$100 million bonuses to OpenAI employees in an unsuccessful bid to poach the ChatGPT maker’s talent and strengthen its own generative artificial intelligence (AI) teams, OpenAI CEO Sam Altman has said. Facebook’s parent company — a competitor of OpenAI — also offered “giant” annual salaries exceeding US$100 million to OpenAI staffers, Altman said in an interview on the Uncapped with Jack Altman podcast released on Tuesday. “It is crazy,” Sam Altman told his brother Jack in the interview. “I’m really happy that at least so far none of our best people have decided to take them
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
PLANS: MSI is also planning to upgrade its service center in the Netherlands Micro-Star International Co (MSI, 微星) yesterday said it plans to set up a server assembly line at its Poland service center this year at the earliest. The computer and peripherals manufacturer expects that the new server assembly line would shorten transportation times in shipments to European countries, a company spokesperson told the Taipei Times by telephone. MSI manufactures motherboards, graphics cards, notebook computers, servers, optical storage devices and communication devices. The company operates plants in Taiwan and China, and runs a global network of service centers. The company is also considering upgrading its service center in the Netherlands into a
RSS