REAL ESTATE
Singapore raises stamp duty
Singapore is raising property taxes to cool its red-hot housing market, amid mounting concern that an influx of wealth into the city-state is hurting affordability for locals and its competitiveness as a financial hub. The government is increasing stamp duties for second-home buyers and foreigners purchasing private property, it said in a statement. For foreigners buying any home, the tax rate doubled to 60 percent from 30 percent. The city-state’s property sector has remained buoyant even as countries elsewhere face slowdowns due to soaring interest rates and inflation, partly due to an inflow of money, especially from the wealthy Chinese. A shortage of supply and rising construction costs during the COVID-19 pandemic propelled home prices and rents, fueling discontent among residents.
AUTOMAKERS
Toyota posts top production
Toyota Motor Corp cemented its position atop the world’s automaking giants, producing a record 10.7 million vehicles as a group for the 12 months ended March 31, due to increased capacity and production optimization in North America and Asia. Global sales, which include brands such as Daihatsu Motor Co and Hino Motors Ltd, came in at 10.6 million units, up 1.7 percent on strong demand, Toyota said in a statement yesterday. Output of Toyota-branded vehicles and Lexus models was 9.13 million units, in line with what the company had forecast earlier. A better supply of chips following the prolonged global semiconductor dearth helped Toyota move away from COVID-19-induced production snarls.
SEMICONDUCTORS
STMicro revenue increases
STMicroelectronics NV’s net revenue in the first quarter of this year rose 20 percent from a year earlier, as demand from vehicle makers and industry customers insulated it from a broader downturn in the semiconductor industry. The Franco-Italian chipmaker’s net revenue rose to US$4.25 billion in the period, the company said in a statement yesterday. Demand for STMicro products has been driven by customers such as Tesla Inc in its automotive unit, which is the company’s largest business area and has benefited from growing electric vehicle sales. Its industry division is expected to be another key area of growth this year as factories become more connected, STMicro said in January.
PHARMACEUTICALS
AstraZeneca profits buoyant
AstraZeneca yesterday beat expectations for first-quarter profit and revenue, as buoyant sales of cancer drug Imfinzi and strong demand for its roster of drugs in emerging markets helped to offset dwindling COVID-19 product sales. The company’s sales and outlook highlight the rapid decline of its COVID-19 vaccine, its best-selling product in 2021 at the height of the COVID-19 pandemic, which has struggled to compete with rival shots developed by Pfizer and Moderna. The London-listed drugmaker, which reports its results in US dollars, reported adjusted profit of US$1.92 per share on sales of about US$10.9 billion. Analysts were expecting about US$1.71 per share on sales of about US$10.6 billion, company-compiled estimates showed. The company’s cancer drug Imfinzi generated US$900 million in the quarter, beating estimates of US$735 million from brokerage Cowen. Sales of its COVID-19 vaccine dropped to US$28 million in the first quarter, compared with US$1.14 billion a year earlier, as the company lost ground to rival mRNA shots.
Semiconductor business between Taiwan and the US is a “win-win” model for both sides given the high level of complementarity, the government said yesterday responding to tariff threats from US President Donald Trump. Home to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), Taiwan is a key link in the global technology supply chain for companies such as Apple Inc and Nvidia Corp. Trump said on Monday he plans to impose tariffs on imported chips, pharmaceuticals and steel in an effort to get the producers to make them in the US. “Taiwan and the US semiconductor and other technology industries
SMALL AND EFFICIENT: The Chinese AI app’s initial success has spurred worries in the US that its tech giants’ massive AI spending needs re-evaluation, a market strategist said Chinese artificial intelligence (AI) start-up DeepSeek’s (深度求索) eponymous AI assistant rocketed to the top of Apple Inc’s iPhone download charts, stirring doubts in Silicon Valley about the strength of the US’ technological dominance. The app’s underlying AI model is widely seen as competitive with OpenAI and Meta Platforms Inc’s latest. Its claim that it cost much less to train and develop triggered share moves across Asia’s supply chain. Chinese tech firms linked to DeepSeek, such as Iflytek Co (科大訊飛), surged yesterday, while chipmaking tool makers like Advantest Corp slumped on the potential threat to demand for Nvidia Corp’s AI accelerators. US stock
The US Federal Reserve is expected to announce a pause in rate cuts on Wednesday, as policymakers look to continue tackling inflation under close and vocal scrutiny from US President Donald Trump. The Fed cut its key lending rate by a full percentage point in the final four months of last year and indicated it would move more cautiously going forward amid an uptick in inflation away from its long-term target of 2 percent. “I think they will do nothing, and I think they should do nothing,” Federal Reserve Bank of St Louis former president Jim Bullard said. “I think the
‘LASER-FOCUSED’: Trump pledged tariffs on specific sectors, including semiconductors, pharmaceuticals, steel, copper and aluminum, and perhaps even cars US President Donald Trump said he wants to enact across-the-board tariffs that are “much bigger” than 2.5 percent, the latest in a string of signals that he is preparing widespread levies to reshape US supply chains. “I have it in my mind what it’s going to be but I won’t be setting it yet, but it’ll be enough to protect our country,” Trump told reporters on Monday night. Asked about a report that incoming US Secretary of the Treasury Scott Bessent favored starting with a global rate of 2.5 percent, Trump said he did not think Bessent supported that and would not
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