TAXATION
US, India reach tax deal
The US on Wednesday said it had reached a deal to lift never-implemented levies on India in exchange for the easing of its tax targeting international tech firms. India is among countries that had imposed a tax on foreign digital services, which earned Washington’s ire since it considers such levies an unfair attack on US tech giants. The US Department of Treasury said in a statement that India would instead follow a minimum tax deal reached last month by 140 countries under the auspices of the Organisation for Economic Co-operation and Development. That agreement would see the imposition of a 15 percent minimum corporate tax worldwide and is expected to come into effect in 2023.
ENVIRONMENT
China eyes methane control
China will look into methane emissions in key industries, including coal mining, agriculture and petroleum, and publish a nationwide methane emission control action plan, the Ministry of Ecology and Environment told a news briefing yesterday. China’s methane emissions were 55.29 million tonnes in 2014, accounting for 10.4 percent of total greenhouse gases emission in the nation, the latest official data showed. The energy sector contributed 45 percent of the methane discharge, while agriculture accounted for 40 percent. The ministry said it would roll out thorough research on China’s methane emission control situation and set effective emission reduction measures.
ENERGY
IEA head appeals to OPEC
International Energy Agency (IEA) Executive Director Fatih Birol on Wednesday called on OPEC and its allies to take measures to help bring oil prices down to reasonable levels. “I very much hope to see in the next meeting or meetings they ... make the necessary steps in order to comfort the global oil markets and help bring the prices down at reasonable levels,” Birol told reporters. He also took aim at Russia over gas. “Russia can easily increase exports to Europe about 15 percent ... and significantly comfort the European gas markets,” Birol said.
MEXICO
Woman to head central bank
Mexican President Andres Manuel Lopez Obrador on Wednesday nominated Deputy Minister of Finance Victoria Rodriguez as the next Bank of Mexico governor, the first woman to head the central bank. The announcement came a day after former minister of finance Arturo Herrera said Lopez Obrador had withdrawn his candidacy for the post, unsettling financial markets. “For the first time, a woman will be heading the Bank of Mexico,” Lopez Obrador told reporters, saying the nomination, which requires approval by the senate, was part of efforts to promote gender equality. As deputy finance minister, Rodriguez “has acted with great responsibility so as not to spend just to spend,” he added.
AIRLINES
Cathay to slash HK flights
Cathay Pacific yesterday said it would slash passenger flights into Hong Kong next month as the territory’s strict travel curbs continue to keep international travelers away at a time when rivals are seeing their prospects improve. As the peak holiday season approaches, the airline will convert about one-third of flights bound for Hong Kong to handle cargo, the South China Morning Post reported, citing company sources.
AI BOOST: Although Taiwan’s reliance on Chinese rare earth elements is limited, it could face indirect impacts from supply issues and price volatility, an economist said DBS Bank Ltd (星展銀行) has sharply raised its forecast for Taiwan’s economic growth this year to 5.6 percent, citing stronger-than-expected exports and investment linked to artificial intelligence (AI), as it said that the current momentum could peak soon. The acceleration of the global AI race has fueled a surge in Taiwan’s AI-related capital spending and exports of information and communications technology (ICT) products, which have been key drivers of growth this year. “We have revised our GDP forecast for Taiwan upward to 5.6 percent from 4 percent, an upgrade that mainly reflects stronger-than-expected AI-related exports and investment in the third
Mercuries Life Insurance Co (三商美邦人壽) shares surged to a seven-month high this week after local media reported that E.Sun Financial Holding Co (玉山金控) had outbid CTBC Financial Holding Co (中信金控) in the financially strained insurer’s ongoing sale process. Shares of the mid-sized life insurer climbed 5.8 percent this week to NT$6.72, extending a nearly 18 percent rally over the past month, as investors bet on the likelihood of an impending takeover. The final round of bidding closed on Thursday, marking a critical step in the 32-year-old insurer’s search for a buyer after years of struggling to meet capital adequacy requirements. Local media reports
TECHNOLOGICAL RIVALRY: The artificial intelligence chip competition among multiple players would likely intensify over the next two years, a Quanta official said Quanta Computer Inc (廣達), which makes servers and laptops on a contract basis, yesterday said its shipments of artificial intelligence (AI) servers powered by Nvidia Corp’s GB300 chips have increased steadily since last month, should surpass those of the GB200 models this quarter. The production of GB300 servers has gone much more smoothly than that of the GB200, with shipments projected to increase sharply next month, Quanta executive vice president Mike Yang (楊麒令) said on the sidelines of a technology forum in Taipei. While orders for GB200 servers gradually decrease, the production transition between the two server models has been
ASE Technology Holding Co (日月光投控), the world’s largest integrated circuit (IC) packaging and testing supplier, yesterday announced a strategic collaboration with Analog Devices Inc (ADI), coupled with the signing of a binding memorandum of understanding. Under the agreement, ASE intends to purchase 100 percent shares of Analog Devices Sdn Bhd and acquire its manufacturing facility in Penang, Malaysia, a press release showed. The ADI Penang facility is located in the prime industrial hub of Bayan Lepas, with an area of over 680,000 square feet, it said. In addition, the two sides intend to enter into a long-term supply agreement for ASE to
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