JAPAN
Trade deficit narrows
The trade deficit narrowed for the second month last month, as the price of fuel eased and brought down import costs. The trade gap shrank to ￥754.5 billion (US$5.6 billion) from a revised ￥898.1 billion in February, the Ministry of Finance reported yesterday. Economists had forecast a ￥1.29 trillion shortfall. Imports grew 7.3 percent from a year earlier, the smallest gain in two years, as a firmer yen and falling commodity prices, including oil, curbed import costs. Exports were up 4.3 percent from a year earlier, led by vehicle shipments. While smaller than the earlier month, the deficit has extended its streak to 20 months and is seen weighing on recovery prospects.
TECHNOLOGY
Seagate fined for China deal
US authorities on Wednesday imposed a US$300 million penalty on Seagate Technology Holdings PLC, to resolve alleged contraventions of export controls related to selling hard disk drives to Huawei Technologies Co (華為), the US Department of Commerce said. The manufacturer was involved in the shipment of hard disk drives valued at more than US$1.1 billion to Huawei entities despite US controls. The commerce department said the breaches took place between August 2020 and September 2021.
TECHNOLOGY
Nokia EPS miss forecast
Finland’s Nokia Oyj yesterday reported a lower-than-expected rise in earnings in the first quarter of this year as economic headwinds affected spending by its customers. The telecommunications equipment maker said its net profit jumped 32 percent to 289 million euros (US$317 million), but its earnings per share (EPS) amounted to 0.06 euros, weaker than the 0.07 euros expected in a survey of analysts by financial data firm FactSet Inc. Its comparable operating margin — a profitability yardstick — declined to 8.2 percent from 10.9 percent a year earlier.
COSMETICS
L’Oreal sales grow 14.6%
French beauty products giant L’Oreal SA yesterday posted double-digit percentage sales growth in the first quarter of this year despite a dip in China at the beginning of the year. The company said sales rose by volume and value, jumping 14.6 percent from the same period last year to 10.38 billion euros. North Asia sales rose only 1.1 percent due to a drop “in continental China at the very beginning of the year as a result of the evolution of the health situation,” the company said. Sales grew 16.6 percent in Europe, L’Oreal’s biggest region, with gains lead by cosmetics, perfumes and skin treatments.
TECHNOLOGY
IBM forecasts 3-5% growth
International Business Machines Corp (IBM) gave a forecast for annual revenue in line with analysts’ projections, delivering a cautiously optimistic signal about technology spending in an uncertain economy. Sales would increase 3 to 5 percent this year, the company said on Wednesday, meeting analysts’ estimates. The company affirmed a previous free cash flow forecast of US$10.5 billion for the year. IBM reported first-quarter revenue of US$14.3 billion, little changed from the same period a year earlier and slightly below analysts’ average estimate. Profit excluding some items was US$1.36 per share in the quarter ended March 31. Analysts projected US$1.25 per share, data compiled by Bloomberg showed.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) founder Morris Chang (張忠謀) yesterday said that Intel Corp would find itself in the same predicament as it did four years ago if its board does not come up with a core business strategy. Chang made the remarks in response to reporters’ questions about the ailing US chipmaker, once an archrival of TSMC, during a news conference in Taipei for the launch of the second volume of his autobiography. Intel unexpectedly announced the immediate retirement of former chief executive officer Pat Gelsinger last week, ending his nearly four-year tenure and ending his attempts to revive the
WORLD DOMINATION: TSMC’s lead over second-placed Samsung has grown as the latter faces increased Chinese competition and the end of clients’ product life cycles Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) retained the No. 1 title in the global pure-play wafer foundry business in the third quarter of this year, seeing its market share growing to 64.9 percent to leave South Korea’s Samsung Electronics Co, the No. 2 supplier, further behind, Taipei-based TrendForce Corp (集邦科技) said in a report. TSMC posted US$23.53 billion in sales in the July-September period, up 13.0 percent from a quarter earlier, which boosted its market share to 64.9 percent, up from 62.3 percent in the second quarter, the report issued on Monday last week showed. TSMC benefited from the debut of flagship
A former ASML Holding NV employee is facing a lawsuit in the Netherlands over suspected theft of trade secrets, Dutch public broadcaster NOS said, in the latest breach of the maker of advanced chip-manufacturing equipment. The 43-year-old Russian engineer, who is suspected of stealing documents such as microchip manuals from ASML, is expected to appear at a court in Rotterdam today, NOS reported on Friday. He is accused of multiple violations of the sanctions legislation and has been given a 20-year entry ban by the Dutch government, the report said. The Dutch company makes machines needed to produce high-end chips that power
Taiwan would remain in the same international network for carrying out cross-border payments and would not be marginalized on the world stage, despite jostling among international powers, central bank Governor Yang Chin-long (楊金龍) said yesterday. Yang made the remarks during a speech at an annual event organized by Financial Information Service Co (財金資訊), which oversees Taiwan’s banking, payment and settlement systems. “The US dollar will remain the world’s major cross-border payment tool, given its high liquidity, legality and safe-haven status,” Yang said. Russia is pushing for a new cross-border payment system and highlighted the issue during a BRICS summit in October. The existing system
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