Sanofi to sell stake
France’s Sanofi SA on Monday said that it plans to divest its stake in US biotech firm Regeneron Pharmaceuticals Inc that is valued at about US$13 billion. However, Sanofi, which holds about a 20.6 percent stake in Regeneron, said that it had no intention of halting its partnership with the firm. The sale would see a repurchase by Regeneron of about US$5 billion of its shares from Sanofi, the French company said in a statement. Sanofi chief executive officer Paul Hudson said that the proceeds from the transaction would be used to further expand the company.
Consumer confidence recovered some of the ground lost due the COVID-19 pandemic, but it remains deep in negative territory as Europe’s top economy faces a slow recovery, a survey showed yesterday. GfK said its forward-looking monthly barometer for next month showed a reading of minus-18.9 points, up from minus-23.1 this month, when the indicator plunged 25 points. Despite the improvement, next month’s level is the second-lowest ever measured by the survey since its creation in 1980, GfK said.
Economy to shrink 7%
The economy is on track to shrink 7 percent this year, in line with the government’s forecast in its spring budget, Minister of Finance Magdalena Andersson said yesterday. “Our best forecast today is negative GDP growth of 7 percent this year,” Andersson told reporters. The government gave two scenarios in its budget, one of a milder contraction in GDP of about 4 percent and a more negative outcome of a 10 percent dip. Indicators put Sweden somewhere in the middle of the two, Andersson said.
Ministry proposes tax cuts
The Ministry of Finance is proposing a 30 percent corporate tax cut this year for businesses with annual revenue of less than 50 billion dong (US$2.2 million) and fewer than 100 employees to help them recover from the pandemic. The proposed tax cuts are estimated to cost 15.84 trillion dong, the ministry said. Small companies represent more than 93 percent of the 760,000 businesses in the nation, it added.
HSBC to buy German stake
HSBC Holdings PLC is to take full control of its German business as Europe’s largest lender restructures its global operations. The bank is to acquire an 18.66 percent stake in HSBC Trinkaus & Burkhardt AG from Landesbank Baden-Wuerttemberg, a regional lender in the south of Germany, according to statements by the banks on Monday. They did not disclose a price. HSBC Trinkaus & Burkhardt had total assets of 26.6 billion euros (US$29.2 billion) and employed more than 3,000 people at the end of last year.
Uber to cut 600 Indian jobs
Uber Technologies Inc is to cut about 600 jobs in India as part of its plans to trim 23 percent of its global workforce, as the company navigates a lockdown that has brought businesses in the nation to a grinding halt. Uber last week said that it would focus on its core businesses of ride-hailing and food delivery, and cut staffing by more than one-third globally in an attempt to become profitable, despite the pandemic.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s