TRADE
PRC buys US pork, soybeans
Beijing yesterday said that it had bought a “considerable” amount of US pork and soybeans, the latest sign of conciliation between the two nations. “Recently Chinese enterprises have ... started price inquiry and purchases of US agricultural products, and have also completed a transaction of soybeans and pork of considerable size with the US,” Chinese Ministry of Commerce spokesman Gao Feng (高峰) told a press briefing.
BANKING
ABN Amro being probed
Dutch prosecutors are investigating alleged money laundering at ABN Amro, saying that they suspect the lender had failed to report or probe suspicious transactions for years. Prosecutors yesterday said they believe ABN Amro reported suspicious transactions too late or not at all over a long period, adding that the bank failed to properly investigate client behavior and did not sever ties with suspect clients in a timely fashion. Prosecutors said the probe was based on information provided by the Dutch central bank, which earlier this year ordered ABN to review all local retail clients for possible money laundering or other criminal activities.
SINGAPORE
Factory output dives
Factory output last month plunged far more than economists predicted, in a sign that the city-state’s manufacturing downturn could be worsening. Industrial production dropped 8 percent from a year earlier, worse than all the forecasts in a Bloomberg survey of economists, making it the biggest contraction this year, including June’s revised 7.9 percent decline. It shrank 7.5 percent on a seasonally adjusted monthly basis. US-China and Japan-South Korea trade tensions, as well as a broader slowdown in China and elsewhere, continue to weigh on Singapore, where the government has slashed its full-year growth forecast to nearly zero.
INTERNET
Baidu to sell some of Ctrip
Baidu Inc (百度) is selling about one-third of its stake in online travel Web site Ctrip.com International Ltd (攜程旅行網), generating about US$1 billion to counter a slowing economy and intensifying competition in its key advertising business. Ctrip yesterday announced a proposed secondary offering of 31.3 million American depositary receipts held by Baidu. That represents about 30 percent of its stake in Ctrip and is equivalent to about US$1 billion based on Ctrip’s current share price. Baidu is to remain Ctrip’s largest shareholder, with a 19 percent stake.
INDIA
Fiscal gap to widen: Fitch
The nation’s combined fiscal gap, including states’ deficits, is seen widening to the highest in about eight years, as the government boosts measures to stimulate a slowing economy. The general government deficit is seen at 7.5 percent of GDP in the year to March, Fitch Ratings said. Fitch’s reading is well above the “BBB” category median of 1.9 percent.
PHARMACEUTICALS
Glaxo targets RSV vaccine
GlaxoSmithKline PLC is taking aim at respiratory syncytial virus (RSV), which kills tens of thousands of children each year. Experimental shots targeting RSV are the top pipeline priority for Glaxo’s vaccines unit, senior vice president for research and development Emmanuel Hanon said in an interview yesterday. Glaxo plans to move those vaccines into the final stage of testing by the end of next year, he said.
TARIFFS: The global ‘panic atmosphere remains strong,’ and foreign investors have continued to sell their holdings since the start of the year, the Ministry of Finance said The government yesterday authorized the activation of its NT$500 billion (US$15.15 billion) National Stabilization Fund (NSF) to prop up the local stock market after two days of sharp falls in reaction to US President Donald Trump’s new import tariffs. The Ministry of Finance said in a statement after the market close that the steering committee of the fund had been given the go-ahead to intervene in the market to bolster Taiwanese shares in a time of crisis. The fund has been authorized to use its assets “to carry out market stabilization tasks as appropriate to maintain the stability of Taiwan’s
STEEP DECLINE: Yesterday’s drop was the third-steepest in its history, the steepest being Monday’s drop in the wake of the tariff announcement on Wednesday last week Taiwanese stocks continued their heavy sell-off yesterday, as concerns over US tariffs and unwinding of leveraged bets weighed on the market. The benchmark TAIEX plunged 1,068.19 points, or 5.79 percent, to 17,391.76, notching the biggest drop among Asian peers as it hit a 15-month low. The decline came even after the government on late Tuesday authorized the NT$500 billion (US$15.2 billion) National Stabilization Fund (國安基金) to step in to buoy the market amid investors’ worries over tariffs imposed by US President Donald Trump. Yesterday’s decline was the third-steepest in its history, trailing only the declines of 2,065.87 points on Monday and
TARIFF CONCERNS: The chipmaker cited global uncertainty from US tariffs and a weakening economic outlook, but said its Singapore expansion remains on track Vanguard International Semiconductor Corp (世界先進), a foundry service provider specializing in producing power management and display driver chips, yesterday withdrew its full-year revenue projection of moderate growth for this year, as escalating US tariff tensions raised uncertainty and concern about a potential economic recession. The Hsinchu-based chipmaker in February said revenues this year would grow mildly from last year based on improving supply chain inventory levels and market demand. At the time, it also anticipated gradual quarter revenue growth. However, the US’ sweeping tariff policy has upended the industry’s supply chains and weakened economic prospects for the world economy, it said. “Now
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
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