■ Labor
Seoul orders end to strike
Using rarely invoked powers, the South Korean government yesterday ordered an end to a 25-day strike by unionized pilots at Asiana Airlines, the country's second-biggest carrier, the Labor Ministry said. The government's intervention forces the pilots to stop the strike for 30 days. The government action came after hopes were raised for a last-minute resolution, with the union and management suddenly resuming broken off negotiations earlier in the day. Those talks failed to reach a breakthrough, the ministry said. Asiana has been forced to cancel over 2,000 domestic and more than 130 international flights since the strike began July 17. About 90 percent of its cargo flights have been suspended. The strike has been costly for the airline and companies it works closely with such as travel agencies, importers and exporters, resulting in estimated losses of 353 billion won (US$348 million) through Sunday.
■ Computers
Lenovo reports rising profit
In its first earnings report since buying IBM Corp's PC business, Chinese computer maker Lenovo Group Ltd (聯想) said yesterday that its net profit rose 6 percent in the April-June quarter to HK$357 million (US$45.8 million). The figure compared to HK$337 million in the first quarter last year. Lenovo said its overall PC business remained profitable despite taking on IBM's money-losing unit, with global sales totalling HK$18.3 billion. Lenovo chief executive Steve Ward said the PC operations acquired from IBM in April are performing better than they did under IBM. Overall revenue more than tripled in the fiscal first quarter to HK$19.6 billion from HK$5.88 billion. Hong Kong-listed Lenovo had earlier predicted the IBM deal would quadruple its sales. Lenovo said in a statement it was "generating faster-than-expected benefits from the synergies anticipated from the acquisition."
■ Aerospace
EU backs merger plan
The European Commission has given its green light to plans by US aerospace and defense firms Lockheed Martin Corp and Boeing Co to merge their rocket launch services. The firms will form a joint venture known as United Launch Alliance, to combine the testing and launching operations of Lockheed Martin's Atlas and Boeing's Delta rockets. The EU head office said late on Tuesday that the deal posed no competition concerns in the European market. The two firms will maintain separate engineering and design programs and will still produce their two rockets separately. The merger comes after a downturn in the rocket business. Each firm will control 50 percent of the venture, which is expected to generate between US$1.5 billion and US$2 billion in annual revenue.
■ Acquisitions
Ripplewood ups Maytag bid
In a last-ditch effort to outbid Maytag's much larger Whirlpool, a consortium of investors led by the private equity firm Ripplewood Holdings indicated on Tuesday night that it might be willing to raise its offer to about US$15.65 a share, or US$1.3 billion, according to executives close to the negotiations. Ripplewood made the indication to Maytag's board a day after Whirlpool submitted a bid of US$20 a share, or US$1.62 billion in cash and stock. Maytag's board had until 2pm yesterday to decide which bid to accept if neither suitor formally adjusts its offer.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College
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