BANKING
UBS reports no trading loss
UBS Group AG, Switzerland’s biggest bank, said its trading businesses did not suffer a loss in the market turmoil that erupted when the Swiss National Bank surprisingly scrapped its limit on the franc. “In aggregate, UBS did not experience negative revenues in its trading businesses in connection with the announcement,” the bank said in a statement yesterday. It said it would provide further information on its outlook for the first quarter when it releases fourth-quarter results next month.
GAMING
Galaxy expanding in Macau
Galaxy Entertainment Group Ltd (銀河娛樂集團), the casino operator controlled by billionaire Lui Che-woo (呂志和), plans to spend about HK$57 billion (US$7.4 billion) more to expand in Macau and will recreate New York’s Broadway theater to woo more visitors. The company will add a 3,000-seat entertainment theater in Macau, Lui said yesterday at a press conference in Hong Kong. Galaxy has committed HK$100 billion to Macau’s Cotai strip, with a part of it already invested.
RESORTS
France clears Club Med sale
French regulators on Thursday cleared the way for Chinese conglomerate Fosun International Ltd (復星國際) to buy the holiday resorts group Club Med for about 939 million euros (just more than US$1 billion) and set Feb. 9 as the closing date for the offer. The Financial Markets Authority said that stock market operator Euronext Paris “will make known, in an announcement, the conditions for completing [the deal] and a detailed calendar.”
CONGLOMERATES
Sony may delay profit report
Sony Corp yesterday said it was asking Japanese regulators for permission to delay the release of its earnings next month after a cyberattack at its Hollywood film unit compromised “a large amount of data” on its systems. The Japanese firm said its US-based Sony Pictures Entertainment subsidiary will not have time to put together its financial statements owing to the attack linked to its controversial movie The Interview.
SPORTING GOODS
Adidas meets targets
Adidas yesterday said it met its targets for last year, but earnings were hit by special factors such as the falling ruble and the sale of its Rockport brand. Full-year sales grew 2 percent to 14.8 billion euros (US$16.7 billion) last year, and net profit “reached the earnings target of around 650 million euros,” the German company said. Adidas said these were 80 million euros in writedowns on its Russian business “as a result of the significant deterioration of the Russian ruble.” In addition, the sale of its Rockport brand would hit profits by a “double-digit million euro amount” or tens of millions euros, it said.
RETAIL
Starbucks profit jumps 82%
Starbucks Corp’s fiscal first-quarter earnings soared 82 percent as the coffee chain attracted more customers who snapped up an expanded offerings of food and drinks over the holidays. Starbucks said it earned US$983.1 million in the quarter ended Dec. 28, or US$1.30 per share. That compared with US$540.7 million or US$0.71 per share, a year earlier. The coffee chain posted revenue of US$4.8 billion in the period, beating consensus forecasts. Analysts expected US$4.79 billion, according to Zacks Investment Research.
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
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