VIETNAM
Central bank calms market
The State Bank of Vietnam yesterday sought to calm markets after investors sold financial stocks, and customers of the nation’s fifth-largest commercial bank raced to withdraw their savings following a police probe into a prominent real-estate tycoon. The benchmark index and bank stocks plunged after police over the weekend announced the detention of Truong My Lan, chairwoman of Van Thinh Phat Holdings Group, and other company officials for allegedly obtaining property through fraudulent means. The move was in relation to an investigation into the issuance and trading of bonds in which vast sums of currency were allegedly appropriated in 2018 and 2019.
SINGAPORE
MAS urges greater scrutiny
The Monetary Authority of Singapore (MAS) yesterday urged asset managers to ramp up pressure and scrutiny on environmental, social and corporate governance issues in their portfolio companies. “We encourage institutional investors to take the lead in exercising responsible investor stewardship,” MAS Deputy Managing Director Ho Hern Shin (何亨申) said at a corporate governance conference. This could be done through engagement with companies and proxy voting, she added. On pay transparency, Ho said it was “concerning” that most listed companies do not adhere to laws requiring disclosure of how much their CEOs and directors are paid.
AUTOMAKERS
Renault in Nissan sale talk
Renault SA’s stock surged after the automaker confirmed talks that could lead to the French company cashing in some of its 6.1 billion euros (US$5.9 billion) of shares in alliance partner Nissan Motor Co. The stock rose as much as 6.6 percent as of 9:30am yesterday in Paris after Renault said that it was discussing several initiatives with Nissan. The talks include the Japanese manufacturer potentially investing in the new electric vehicle entity that Renault is planning to create. People familiar with the matter said that as part of these talks, Renault is open to reducing it stake in Nissan, a prospect that has been cheered by several analysts.
ENERGY
Energean gas flow tests start
Energean PLC has begun pumping gas to its floating production facility in the offshore Karish gas field as part of reverse flow testing procedures approved by the Israeli government, the London-listed energy group said on Sunday. The testing phase is an important step in the commissioning process of the so-called FPSO Energean Power facility, it said. The development of the Karish field, about 80km west of the Israeli city of Haifa, has raised tensions between Israel and Lebanon in their protracted dispute over maritime boundaries. The US has been mediating indirect talks on the issue since 2020.
FINANCE
Auto debt market risks high
Ark Investment Management LLC founder and CEO Cathie Wood yesterday flagged the risk of “serious losses” in the trillion-dollar auto debt market, after statistics showed that used vehicle prices in the US decreased last month. Writing on Twitter, Wood cited a shift in consumer tastes toward electric vehicles as leading to a drop in the price of gasoline-powered vehicles. Wood also posted data released by Manheim Auctions, the world’s largest reseller of used vehicles. That organization’s US Used Vehicle Value Index showed a 3 percent drop last month from August.
Taiwan would remain in the same international network for carrying out cross-border payments and would not be marginalized on the world stage, despite jostling among international powers, central bank Governor Yang Chin-long (楊金龍) said yesterday. Yang made the remarks during a speech at an annual event organized by Financial Information Service Co (財金資訊), which oversees Taiwan’s banking, payment and settlement systems. “The US dollar will remain the world’s major cross-border payment tool, given its high liquidity, legality and safe-haven status,” Yang said. Russia is pushing for a new cross-border payment system and highlighted the issue during a BRICS summit in October. The existing system
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to grow its revenue by about 25 percent to a new record high next year, driven by robust demand for advanced technologies used in artificial intelligence (AI) applications and crypto mining, International Data Corp (IDC) said yesterday. That would see TSMC secure a 67 percent share of the world’s foundry market next year, from 64 percent this year, IDC senior semiconductor research manager Galen Zeng (曾冠瑋) predicted. In the broader foundry definition, TSMC would see its market share rise to 36 percent next year from 33 percent this year, he said. To address concerns
Intel Corp chief financial officer Dave Zinsner said that a formal separation of the company’s factory and product development divisions is an open question that would be decided by the chipmaker’s next leader. Zinsner, who is serving as interim co-CEO following this month’s ouster of Pat Gelsinger, made the remarks on Thursday at the Barclays technology conference in San Francisco alongside co-CEO Michelle Johnston Holthaus. Intel’s struggles to keep pace with rivals — along with its deteriorating financial condition — have spurred speculation that the next CEO would make dramatic changes. That has included talk of a split of the company’s manufacturing
PROTECTIONISM: The tariffs would go into effect on Jan. 1 and are meant to protect the US’ clean energy sector from unfair Chinese practices, the US trade chief said US President Joe Biden’s administration plans to raise tariffs on solar wafers, polysilicon and some tungsten products from China to protect US clean energy businesses. The notice from the Office of US Trade Representative (USTR) said tariffs on Chinese-made solar wafers and polysilicon would rise to 50 percent from 25 percent and duties on certain tungsten products would increase from zero to 25 percent, effective on Jan. 1, following a review of Chinese trade practices under Section 301 of the US Trade Act of 1974. The decision followed a public comment period after the USTR said in September that it was considering
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