■ ECONOMY
Recession likely: Greenspan
A recession in the US remains a probability, former Federal Reserve chairman Alan Greenspan said in an interview published yesterday. Speaking to the Financial Times from Washington, Greenspan said he believed “there is a greater than 50 percent probability of recession.” He noted, however, that “that probability has receded a little.” The likelihood of a severe recession had “come down markedly,” but it was too soon to tell whether the worst was already over, he said. Greenspan estimated that house prices in the US would drop by a further 10 percent from their levels in February — a 25 percent drop from their peak, the Financial Times reported. “Such house price declines imply a major contraction in the level of equity in owner-occupied homes, the ultimate collateral for mortgage-backed securities,” he said.
■ ECONOMY
HSBC head urges rate hike
The chief executive of Europe’s biggest lender yesterday called on central bankers to raise interest rates in order to combat inflation. Michael Geoghegan, group chief executive at London-based HSBC Holdings, said central banks were not yet committed to taming inflation, and predicted US interest rates would rise after the US presidential election in November. “Inflation is a long-term problem because there is no long-term will to solve it,” Geoghegan said during a speech organized by the Asia Society in Hong Kong.
■ TELECOMS
Vodafone reports profit
Mobile phone company Vodafone PLC yesterday announced a return to full-year net profit from a loss the previous year, and said chief executive Arun Sarin would step down at the end of July. Sarin has held the top job for five years and will be replaced by his deputy, Vittorio Colao. Vodafone said net profit for the year to March 31 was £6.7 billion (US$13.25 billion) from a net loss of £4.9 billion a year earlier. Revenues increased 14 percent to £35.5 billion pounds, from £31.1 billion pounds the year before.
■ ELECTRONICS
LG mum on acquiring GE
LG Electronics CEO Nam Yong said yesterday that General Electric’s plans to sell or spin off its appliance business has the potential to shake up the industry. “This could greatly impact the entire appliance industry,” Nam told reporters. “This might reshape the digital appliance market globally so we are watching very closely.” He was responding to a question about whether LG itself might be interested in acquiring the business. Asked again later, he reiterated that his company was monitoring the situation and said he could not comment further. Fairfield, Connecticut-based GE said earlier this month that it plans to sell or spin off its iconic appliance business that has sold refrigerators, washing machines and dishwashers for a century, part of a restructuring plan.
■ ELECTRONICS
Electrolux to shift plants
Swedish home appliance maker Electrolux said yesterday it will close one of its refrigerator plants in Italy to boost competitiveness, citing the results of an internal review. Production of refrigerators at Scandicci, southwest of Florence, will relocate to the group’s plant at Susegana, impacting some 450 employees, the group said. Electrolux said it planned to help find “solutions to reduce negative impact on affected employees,” noting possibilities like outplacement services. Meanwhile the group was to invest in the Susegana plant about 45km north of Venice.
A magnitude 7.0 earthquake struck off Yilan at 11:05pm yesterday, the Central Weather Administration (CWA) said. The epicenter was located at sea, about 32.3km east of Yilan County Hall, at a depth of 72.8km, CWA data showed There were no immediate reports of damage. The intensity of the quake, which gauges the actual effect of a seismic event, measured 4 in Yilan County area on Taiwan’s seven-tier intensity scale, the data showed. It measured 4 in other parts of eastern, northern and central Taiwan as well as Tainan, and 3 in Kaohsiung and Pingtung County, and 2 in Lienchiang and Penghu counties and 1
FOREIGN INTERFERENCE: Beijing would likely intensify public opinion warfare in next year’s local elections to prevent Lai from getting re-elected, the ‘Yomiuri Shimbun’ said Internal documents from a Chinese artificial intelligence (AI) company indicated that China has been using the technology to intervene in foreign elections, including propaganda targeting Taiwan’s local elections next year and presidential elections in 2028, a Japanese newspaper reported yesterday. The Institute of National Security of Vanderbilt University obtained nearly 400 pages of documents from GoLaxy, a company with ties to the Chinese government, and found evidence that it had apparently deployed sophisticated, AI-driven propaganda campaigns in Hong Kong and Taiwan to shape public opinion, the Yomiuri Shimbun reported. GoLaxy provides insights, situation analysis and public opinion-shaping technology by conducting network surveillance
‘POLITICAL GAME’: DPP lawmakers said the motion would not meet the legislative threshold needed, and accused the KMT and the TPP of trivializing the Constitution The Legislative Yuan yesterday approved a motion to initiate impeachment proceedings against President William Lai (賴清德), saying he had undermined Taiwan’s constitutional order and democracy. The motion was approved 61-50 by lawmakers from the main opposition Chinese Nationalist Party (KMT) and the smaller Taiwan People’s Party (TPP), who together hold a legislative majority. Under the motion, a roll call vote for impeachment would be held on May 19 next year, after various hearings are held and Lai is given the chance to defend himself. The move came after Lai on Monday last week did not promulgate an amendment passed by the legislature that
AFTERMATH: The Taipei City Government said it received 39 minor incident reports including gas leaks, water leaks and outages, and a damaged traffic signal A magnitude 7.0 earthquake struck off Taiwan’s northeastern coast late on Saturday, producing only two major aftershocks as of yesterday noon, the Central Weather Administration (CWA) said. The limited aftershocks contrast with last year’s major earthquake in Hualien County, as Saturday’s earthquake occurred at a greater depth in a subduction zone. Saturday’s earthquake struck at 11:05pm, with its hypocenter about 32.3km east of Yilan County Hall, at a depth of 72.8km. Shaking was felt in 17 administrative regions north of Tainan and in eastern Taiwan, reaching intensity level 4 on Taiwan’s seven-tier seismic scale, the CWA said. In Hualien, the
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