FIJI
World Bank issues warning
The country must take urgent action to reduce a debt burden that exceeds 90 percent of GDP or put at risk its recovery from the COVID-19 pandemic and plans for sustainable economic development, the World Bank said yesterday. “Levels of [debt at] around 90% [of GDP] leave the country with limited buffers to address future shocks and highlight the scale and urgency of the fiscal consolidation required,” the bank said in a report. “This situation, combined with emerging global economic risks, threatens Fiji’s macro-fiscal stability, an essential foundation for sustainable economic and social development,” the report said.
PHARMACEUTICALS
GSK to buy Bellus Health
GlaxoSmithKline PLC (GSK) agreed to buy Canadian biotech Bellus Health Inc for a total equity value of about US$2 billion to bolster its pipeline of experimental medicines. The UK drugmaker is to pay US$14.75 per share in cash for Bellus, a 103 percent premium to the stock’s Monday close, it said in a statement yesterday. The takeover would bring GSK a treatment for chronic cough that has shown promising results in clinical trials and has advanced through much of the research process. Bellus’ experimental medicine camlipixant would probably launch in 2026 and the transaction would likely start boosting earnings per share in 2027, GSK said.
TECHNOLOGY
Apple offers savings account
Apple Inc introduced a long-promised high-yield savings account with Goldman Sachs Group Inc, looking to attract US financial clients with an attractive rate and the ease of its Wallet app. The new offering would let Apple Card users earn a 4.15 percent annual yield, more than 10 times the national average, the tech company said in a statement on Monday. The account has no fees, minimum deposit or balance requirements and can be set up from within the Wallet app. The move thrusts the tech company’s clout into a broader fight for depositors, potentially adding to the pressure on other financial firms that are trying to protect their funding.
SINGAPORE
MAS head to step down
Ravi Menon, the Monetary Authority of Singapore’s (MAS) longest-serving managing director, is poised to leave the central bank this year, people familiar with the matter have said. Menon has been at the helm of the MAS since 2011 and his term ends on May 31. Chia Der Jiun (謝?真), one of his former deputies, is tipped to be his successor, the people said. Chia is the Ministry of Manpower’s permanent secretary for development.
TECHNOLOGY
Ericsson beats estimates
Ericsson AB reported better-than-expected first-quarter earnings, but said that a pull back in 5G spending in some of the company’s more mature markets was set to continue. The Swedish maker of mobile networks yesterday reported an adjusted earnings before interest and taxes of 4 billion kronor (US$387 million) in the quarter, more than the analysts’ estimate of 3.28 billion kronor. Revenue rose to 62.6 billion kronor, more than the expected 60.78 billion kronor. The company also gave guidance that the second-quarter earnings before interest, taxes and amortization margin would “reach mid-single-digit level” on the group level and gradually recover in the second half amid “a choppy environment during 2023 with poor visibility.”
When an apartment comes up for rent in Germany’s big cities, hundreds of prospective tenants often queue down the street to view it, but the acute shortage of affordable housing is getting scant attention ahead of today’s snap general election. “Housing is one of the main problems for people, but nobody talks about it, nobody takes it seriously,” said Andreas Ibel, president of Build Europe, an association representing housing developers. Migration and the sluggish economy top the list of voters’ concerns, but analysts say housing policy fails to break through as returns on investment take time to register, making the
EARLY TALKS: Measures under consideration include convincing allies to match US curbs, further restricting exports of AI chips or GPUs, and blocking Chinese investments US President Donald Trump’s administration is sketching out tougher versions of US semiconductor curbs and pressuring key allies to escalate their restrictions on China’s chip industry, an early indication the new US president plans to expand efforts that began under former US president Joe Biden to limit Beijing’s technological prowess. Trump officials recently met with their Japanese and Dutch counterparts about restricting Tokyo Electron Ltd and ASML Holding NV engineers from maintaining semiconductor gear in China, people familiar with the matter said. The aim, which was also a priority for Biden, is to see key allies match China curbs the US
The popular Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) arbitrage trade might soon see a change in dynamics that could affect the trading of the US listing versus the local one. And for anyone who wants to monetize the elevated premium, Goldman Sachs Group Inc highlights potential trades. A note from the bank’s sales desk published on Friday said that demand for TSMC’s Taipei-traded stock could rise as Taiwan’s regulator is considering an amendment to local exchange-traded funds’ (ETFs) ownership. The changes, which could come in the first half of this year, could push up the current 30 percent single-stock weight limit
NOT TO WORRY: Some people are concerned funds might continue moving out of the country, but the central bank said financial account outflows are not unusual in Taiwan Taiwan’s outbound investments hit a new high last year due to investments made by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and other major manufacturers to boost global expansion, the central bank said on Thursday. The net increase in outbound investments last year reached a record US$21.05 billion, while the net increase in outbound investments by Taiwanese residents reached a record US$31.98 billion, central bank data showed. Chen Fei-wen (陳斐紋), deputy director of the central bank’s Department of Economic Research, said the increase was largely due to TSMC’s efforts to expand production in the US and Japan. Investments by Vanguard International
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