■BANKING
Shinsei, Aozora in talks
Troubled Japanese lenders Shinsei and Aozora said yesterday that they were exploring a possible merger that would create the nation’s sixth-biggest commercial bank. Shinsei Bank and Aozora Bank both confirmed in statements that they were holding discussions about a possible tie-up but gave no details. Earlier yesterday, public broadcaster NHK reported, without naming its sources, that the pair had reached a basic agreement to merge next year. The lenders are struggling to find a niche in the face of a weak economy and financial markets as well as growing competition with larger rivals.
■ELECTRONICS
Panasonic to halt buybacks
Panasonic Corp will suspend share buybacks this year to secure funds for investments in businesses that can drive growth, president Fumio Ohtsubo said. “When the economy recovers, the electronics market won’t be the same,” Ohtsubo told shareholders yesterday at their annual meeting in Osaka. “Securing funds for growth is the priority” for Panasonic, to weather a market transition toward environmentally friendly products and cheaper goods, he said. The maker of Viera televisions, which forecasts a net loss of ¥195 billion (US$2.03 billion) in the year ending March 31, spent more than ¥70 billion annually buying back shares for eight years until March this year, said Akira Kadota, a spokesman for Panasonic.
■FINANCIAL SERVICES
Citigroup to raise salaries
Citigroup Inc is raising salaries companywide to offset restrictions on bonuses after the troubled bank accepted US$45 billion of federal bailout money, but the move could backfire if it drives top-performing workers to other employers. According to people familiar with the plans, the changes mean some employees may be paid more and others less, but overall compensation should remain unchanged as higher salaries offset lower incentive payouts. Citigroup also expects to issue new stock options to cushion a roughly 95 percent drop in its stock price since late 2006, one of the sources said.
■INVESTMENT
Buffett lunch proves costly
It’s extremely unlikely billionaire Warren Buffett would ever pay US$2.1 million for lunch, because the Omaha investor prefers hamburgers and Cherry Cokes. But Chinese investment fund manager Zhao Danyang (趙丹陽) paid that much to dine with Berkshire Hathaway’s chairman and CEO on Wednesday as part of a charity auction. During a CNBC interview before lunch, Buffett joked that he hoped he wouldn’t have to leave a 10 percent tip. A new lunch auction began on Sunday and runs through today. The top bid on eBay by Wednesday afternoon was US$135,678, but that is almost certain to grow before the auction ends.
■ENERGY
Gazprom may cut program
Russia’s state-controlled gas monopoly Gazprom said yesterday it may cut its investment program by 30 percent this year due to a weakening in its finances. The Gazprom deputy chief for finances, Andrei Kruglov, told a news conference that “the current difficult situation will call for a change of plans.” He said the board of directors will consider a new budget in September. The company’s board earlier approved a 920 billion ruble (US$29.4 billion) investment program for this year. Gazprom Deputy CEO Alexander Medvedev said on Wednesday that the company expects sales to drop by about 40 percent this year despite increased consumption in Europe in recent months.
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
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
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
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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