JAPAN
Wages drop for 12th month
Workers’ real wages continued to fall in March, in a weaker-than-expected result for pay that is under close scrutiny from the government. Monthly real cash earnings for workers dropped 2.9 percent from a year earlier, slipping for a 12th straight month, the Minister of Health, Labour and Welfare reported yesterday. Economists had forecast a 2.4 percent decline. Nominal cash earnings gained 0.8 percent from the previous year to reach ￥291,081 (US$2,155) for the month, below analysts’ expectations and far from the 3 percent increase flagged by policymakers as necessary for supporting inflation.
AUSTRALIA
Budget surplus forecast
The resource-rich nation is projecting its first budget surplus in 15 years, Treasurer Jim Chalmers said yesterday. “We are now forecasting a surplus this year, smaller deficits after that,” Chalmers told media, hours before unveiling what is expected to be an A$4 billion (US$2.7 billion) surfeit. Chalmers touted the “biggest budget turnaround on record” as evidence of “responsible economic management.” The projected surplus for this financial year would be delivered thanks in part to rising tax income — caused by record-low unemployment — but above all sky-high commodity prices.
MEXICO
Industrial corridor planned
The government on Monday set out fresh details of a plan to attract businesses to a corridor straddling a narrow isthmus of southern Mexico, part of a larger push to pump investment into the relatively poor region. The plan, called the Inter-Oceanic Corridor, is to include 10 new industrial parks along the stretch connecting the Pacific port of Salina Cruz in Oaxaca state with the Gulf coast hub of Coatzacoalcos in Veracruz state, officials said. The government would provide incentives for companies that set up business in the parks, including waiving taxes on rent and value-added taxes, in return for creating a minimum number of jobs, the Ministry of Economy said.
APPAREL
JD Sports bids for Courir
British sports fashion retailer JD Sports Fashion PLC yesterday announced a 520 million euro (US$570.9 million) bid for Courir France SAS, as it pursues its expansion in Europe and beyond. The company said in a statement that it entered “exclusive negotiations” on Monday with private equity firm Equistone Partners Europe, the majority owner of Courir, over the deal which comprises 325 million euros in cash and 195 million euros in assumed debt. The transaction is conditional on regulatory approval from the European Commission and is not expected to be completed before the second half of this year.
PHARMACEUTICALS
Mankind up 30% in IPO
Mankind Pharma Ltd rallied 30 percent on its first day of trading in Mumbai after raising 43.3 billion rupees (US$527.4 million) in one of India’s largest initial public offerings (IPOs) of the year. The drug and contraceptive maker’s stock yesterday jumped to as high as 1,414 rupees. Its shareholders had sold 40 million shares at 1,080 rupees apiece in the IPO, the top of a marketed range that started at 1,026 rupees. The solid debut comes after anchor investors such as the Canada Pension Plan Investment Board, the government of Singapore and the Abu Dhabi Investment Authority together subscribed to nearly 13 billion rupees worth of shares in the offering.
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process
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