■OIL
OPEC chief likes prices
Some US$75 to US$80 a barrel is a satisfactory price for oil, OPEC president Jose Maria Botelho de Vasconcelos told reporters in Abu Dhabi yesterday. “US$75 to US$80 a barrel is a good price ... for the recovery of the world economy,” De Vasconcelos, who is also Angola’s oil minister, told reporters on the sidelines of a conference on Gulf energy security. The rate of compliance by OPEC members with their production quotas “is around 65 percent,” he said, adding that this rate is satisfactory. OPEC members will review production quotas during a meeting in Luanda on Dec. 22.
■AVIATION
EADS posts big Q3 loss
The parent company of planemaker Airbus says it lost 87 million euros (US$130 million) in the third quarter as the weak dollar ate into revenues. European Aeronautic Defense and Space Co (EADS) warned yesterday that charges to its troubled A400M military transport airplane and its A380 superjumbo programs could hurt earnings in the fourth quarter. EADS said it is unable to give a full year forecast for earnings before interest and tax (EBIT) — the measure that analysts watch most closely — because of “ongoing uncertainties on the magnitude of the potential A400M and A380 charges.” The third quarter loss compares to a 679 million euro profit a year earlier. EBIT in the July to September period fell 77 percent to 201 million euros. Revenue was down 2 percent at 9.5 billion euros.
■AVIATION
Rolls-Royce wins orders
British plane engine maker Rolls-Royce said yesterday it had secured orders worth US$2 billion from Air China (中國國際航空) and Ethiopian Airlines. Air China is spending US$1.5 billion for Trent 700 engines for its 20 A330 long-haul jets. Ethiopian Airlines is spending US$480 million on Trent XWB for Airbus A350 planes on order, the company said.
■AVIATION
GE unit teams up with AVIC
General Electric’s GE Aviation Systems unit is teaming with China’s Aviation Industry Corp of China (AVIC, 中國航空工業) to develop and market electronic systems for commercial aircraft customers, including the C919 narrow-body aircraft that China hopes will compete with jets made by industry giants Boeing and Airbus. The goal is to launch the new China-based company by the middle of next year, subject to regulatory approvals. GE Aviation provides jet engines, parts and systems for current commercial and military aircraft, and the AVIC joint venture will offer electronics and services for future commercial aircraft programs. GE has more than 12,000 employees currently based in China. Financial terms of the partnership were not disclosed. The deal will create 200 jobs in the US, said Lorraine Bolsinger, president and CEO of GE Aviation Systems, in announcing the venture in Beijing on Sunday.
■ELECTRONICS
Hitachi to seek funding
Hitachi Ltd, reeling from massive losses, said yesterday that it planned to raise ¥415.7 billion (US$4.6 billion) from investors to shore up its shaky finances. Hitachi aims to drum up the cash by selling convertible bonds and new shares. It has been hit hard by the global economic downturn. It is restructuring with measures including 7,000 job cuts, after losing ¥787.3 billion in the year to March — the biggest ever loss for a Japanese manufacturer. Other cash-strapped Japanese firms are also going cap in hand to investors to bolster their capital, including electronics giant NEC.
INVESTIGATION: The case is the latest instance of a DPP figure being implicated in an espionage network accused of allegedly leaking information to Chinese intelligence Democratic Progressive Party (DPP) member Ho Jen-chieh (何仁傑) was detained and held incommunicado yesterday on suspicion of spying for China during his tenure as assistant to then-minister of foreign affairs Joseph Wu (吳釗燮). The Taipei District Prosecutors’ Office said Ho was implicated during its investigation into alleged spying activities by former Presidential Office consultant Wu Shang-yu (吳尚雨). Prosecutors said there is reason to believe Ho breached the National Security Act (國家安全法) by leaking classified Ministry of Foreign Affairs information to Chinese intelligence. Following interrogation, prosecutors petitioned the Taipei District Court to detain Ho, citing concerns over potential collusion or tampering of evidence. The
NEGOTIATIONS: Taiwan has good relations with Washington and the outlook for the negotiations looks promising, Minister of Economic Affairs J.W. Kuo said Taiwan’s GDP growth this year is expected to decrease by 0.43 to 1.61 percentage points due to the effects of US tariffs, National Development Council (NDC) Minister Paul Liu (劉鏡清) said at a meeting of the legislature’s Economics Committee in Taipei yesterday, citing a preliminary estimate by a private research institution. Taiwan’s economy would be significantly affected by the 32 percent “reciprocal” tariffs slapped by the US, which took effect yesterday, Liu said, adding that GDP growth could fall below 3 percent and potentially even dip below 2 percent to 1.53 percent this year. The council has commissioned another institution
NEGOTIATIONS: The US response to the countermeasures and plans Taiwan presented has been positive, including boosting procurement and investment, the president said Taiwan is included in the first group for trade negotiations with the US, President William Lai (賴清德) said yesterday, as he seeks to shield Taiwanese exporters from a 32 percent tariff. In Washington, US Trade Representative Jamieson Greer said in an interview on Fox News on Thursday that he would speak to his Taiwanese and Israeli counterparts yesterday about tariffs after holding a long discussion with the Vietnamese earlier. US President Donald Trump on Wednesday postponed punishing levies on multiple trade partners, including Taiwan, for three months after trillions of US dollars were wiped off global markets. He has maintained a 10 percent
TRADE: The premier pledged safeguards on ‘Made in Taiwan’ labeling, anti-dumping measures and stricter export controls to strengthen its position in trade talks Products labeled “made in Taiwan” must be genuinely made in Taiwan, Premier Cho Jung-tai (卓榮泰) said yesterday, vowing to enforce strict safeguards against “origin laundering” and initiate anti-dumping investigations to prevent China dumping its products in Taiwan. Cho made the remarks in a discussion session with representatives from industries in Kaohsiung. In response to the US government’s recent announcement of “reciprocal” tariffs on its trading partners, President William Lai (賴清德) and Cho last week began a series of consultations with industry leaders nationwide to gather feedback and address concerns. Taiwanese and US officials held a videoconference on Friday evening to discuss the
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