MACROECONOMICS
National debt levels rising
Global debt levels jumped in the first quarter of this year, outpacing the world economy and closing in on last year’s record, the Institute of International Finance said. Debt rose by US$3 trillion in the period to US$246.5 trillion, almost 320 percent of global economic output, the institute said in a report published yesterday. That is the second-highest dollar number on record after the first three months of last year, though debt was higher in 2016 and 2017 as a share of world GDP. New borrowing by the US government and by global non-financial business led the increase.
AVIATION
Ryanair cuts forecast
Europe’s largest budget airline, Ryanair Holdings PLC, has cut its forecast for passenger numbers next summer, blaming possible further delays in deliveries of Boeing Co 737 MAX planes. The Irish company on Monday said the move would also impact jobs, as it would close or make cuts at the some of its bases for this winter and next summer’s schedules. The airline now expects to carry 3 percent more passengers next summer, down from its previous forecast of 7 percent. That reduces its traffic estimate for the year to March 2021 to about 157 million from 162 million. Ryanair said it would start discussions with airports to determine which of its underperforming or loss-making bases would be cut or closed from November.
MANUFACTURING
IKEA to close US factory
IKEA said it would close its only US factory at the end of the year, cutting 300 jobs, as it would be more cost-effective to make the products in Europe and import them. It said raw material costs were too high compared to plants in Europe, meaning prices at the plant in Danville, Virginia, were “significantly higher.” The factory, which opened in 2008 to produce wood shelves and storage units for the US and Canadian markets, is to close in December.
FASHION
Burberry Q1 sales up 4%
British luxury brand Burberry Group PLC yesterday reported a pick-up in first-quarter sales after it began shifting more new designs by creative chief Riccardo Tisci into its stores as part of a turnaround plan. New products accounted for around half the wares on offer in its shops by the end of last month, it said. This helped lift same store sales by 4 percent — following growth of 1 percent in the previous three months and topping market expectations of about 2 percent.
TECHNOLOGY
Symantec-Broadcom deal off
Symantec Corp and Broadcom Inc have halted their discussions for a proposed merger as they could not agree on a price, according to people familiar with the matter. Discussions hit an impasse over the weekend after Broadcom sought to reduce its offer by more than US$1.50 per share after determining in due diligence that it was no longer willing to meet their agreed-upon price of US$28.25, the people said. The talks could be resumed if both parties are able to compromise on price or if Symantec comes under sufficient pressure to re-engage, the people said.
TELECOMS
France starts 5G process
France’s telecoms regulator Arcep on Monday officially launched the process to allocate to operators frequencies for next-generation 5G mobile telephone networks. Arcep said it would offer the initial batch of frequencies at a fixed price and then hold an auction for the rest.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
US CONSCULTANT: The US Department of Commerce’s Ursula Burns is a rarely seen US government consultant to be put forward to sit on the board, nominated as an independent director Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday nominated 10 candidates for its new board of directors, including Ursula Burns from the US Department of Commerce. It is rare that TSMC has nominated a US government consultant to sit on its board. Burns was nominated as one of seven independent directors. She is vice chair of the department’s Advisory Council on Supply Chain Competitiveness. Burns is to stand for election at TSMC’s annual shareholders’ meeting on June 4 along with the rest of the candidates. TSMC chairman Mark Liu (劉德音) was not on the list after in December last