METALS
Copper, nickel climb
Base metals yesterday stormed higher, with copper rallying above US$9,000 per tonne on bets that increased demand, driven by the recovery from the COVID-19 pandemic, would spur a historic deficit, putting the economic bellwether on course for a record run of monthly gains. Nickel topped US$20,000 per tonne. Copper climbed as much as 4 percent and is heading for an unprecedented 11th monthly rise this month. Metals are on a tear on expectations that post-crisis demand would outstrip near-term supply. That might reinforce speculation about a new commodity supercycle and stoke concern about rising price pressures, as the global economy recovers from the pandemic.
FINANCE
EU firms need UK offices
About 1,000 EU finance firms are expected to open their first offices in the UK after losing their passporting rights because of Brexit. About two-thirds of the 1,500 money managers, payment firms and insurers that have applied for regulatory permission to continue operating in the UK previously had no physical operations in the nation, according to British Financial Conduct Authority records obtained by Bovill, a financial consultancy. Irish, French and German companies together accounted for 584 of the 1,500 applications for authorization to do business in the UK. Cyprus, which is a popular venue for trading platforms, was the next most common, with 151.
BANKING
M&T, People’s plan merger
M&T Bank Corp is nearing an agreement to merge with People’s United Financial Inc, with the two firms discussing an all-stock deal that could be finalized as soon as this week, the Wall Street Journal reported, citing people familiar with the matter. The banks would have more than US$200 billion in assets combined, it said. People’s United has a market value of about US$6.6 billion, while M&T’s is more than US$19 billion. The combined firm is likely to be led by M&T chief executive Rene Jones and maintain a significant corporate presence in Bridgeport, Connecticut, the newspaper said.
LOGISTICS
Kuehne+Nagel to buy Apex
Kuehne+Nagel International AG has agreed to acquire Apex International Corp in a deal that values the freight forwarder at about US$1.5 billion, people familiar with the matter said. The Swiss logistics firm yesterday announced the transaction without providing any financial terms. Kuehne+Nagel is going to buy a majority stake in Apex Logistics from North Asia-focused private equity firm MBK Partners, which invested in the company in 2015. The management of Apex Logistics would retain a minority stake after the transaction, it said in a statement. The deal is still subject to conditions, including merger clearance by competition authorities, it said.
HONG KONG
Home sales resilient
The property market is showing signs of strength, with weekend home sales reaching an eight-year high. The 10 biggest housing estates tracked by Centaline Property Agency Ltd (中原地產) recorded 37 transactions in the past weekend, a number unseen since 2013, it said. A stabilizing COVID-19 pandemic, relaxed social distancing measures and imminent vaccinations have boosted buyers’ confidence in the housing market, Louis Chan (陳榮威), CEO of Centaline’s residential division, said in an e-mailed statement. Despite experiencing the double whammy of protests and a pandemic, the residential market has remained resilient.
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Taiwan will prioritize the development of silicon photonics by taking advantage of its strength in the semiconductor industry to build another shield to protect the local economy, National Development Council (NDC) Minister Paul Liu (劉鏡清) said yesterday. Speaking at a meeting of the legislature’s Economics Committee, Liu said Taiwan already has the artificial intelligence (AI) industry as a shield, after the semiconductor industry, to safeguard the country, and is looking at new unique fields to build more economic shields. While Taiwan will further strengthen its existing shields, over the longer term, the country is determined to focus on such potential segments as
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors
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