■ 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.
Taiwan is projected to lose a working-age population of about 6.67 million people in two waves of retirement in the coming years, as the nation confronts accelerating demographic decline and a shortage of younger workers to take their place, the Ministry of the Interior said. Taiwan experienced its largest baby boom between 1958 and 1966, when the population grew by 3.78 million, followed by a second surge of 2.89 million between 1976 and 1982, ministry data showed. In 2023, the first of those baby boom generations — those born in the late 1950s and early 1960s — began to enter retirement, triggering
One of two tropical depressions that formed off Taiwan yesterday morning could turn into a moderate typhoon by the weekend, the Central Weather Administration (CWA) said yesterday. Tropical Depression No. 21 formed at 8am about 1,850km off the southeast coast, CWA forecaster Lee Meng-hsuan (李孟軒) said. The weather system is expected to move northwest as it builds momentum, possibly intensifying this weekend into a typhoon, which would be called Mitag, Lee said. The radius of the storm is expected to reach almost 200km, she said. It is forecast to approach the southeast of Taiwan on Monday next week and pass through the Bashi Channel
NO CHANGE: The TRA makes clear that the US does not consider the status of Taiwan to have been determined by WWII-era documents, a former AIT deputy director said The American Institute in Taiwan’s (AIT) comments that World War-II era documents do not determine Taiwan’s political status accurately conveyed the US’ stance, the US Department of State said. An AIT spokesperson on Saturday said that a Chinese official mischaracterized World War II-era documents as stating that Taiwan was ceded to the China. The remarks from the US’ de facto embassy in Taiwan drew criticism from the Ma Ying-jeou Foundation, whose director said the comments put Taiwan in danger. The Chinese-language United Daily News yesterday reported that a US State Department spokesperson confirmed the AIT’s position. They added that the US would continue to
The number of Chinese spouses applying for dependent residency as well as long-term residency in Taiwan has decreased, the Mainland Affairs Council said yesterday, adding that the reduction of Chinese spouses staying or living in Taiwan is only one facet reflecting the general decrease in the number of people willing to get married in Taiwan. The number of Chinese spouses applying for dependent residency last year was 7,123, down by 2,931, or 29.15 percent, from the previous year. The same census showed that the number of Chinese spouses applying for long-term residency and receiving approval last year stood at 2,973, down 1,520,
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