EUROZONE
Commission raises outlook
The European Commission yesterday boosted its economic growth outlook for the eurozone this year, but it also raised the inflation forecast for the single currency area. The commission raised its growth outlook by 0.2 points to 1.1 percent. Brussels also raised next year’s growth forecast for the 20-country single currency zone by 0.1 points to 1.6 percent. The growth forecast for the 27-nation EU as a whole was also raised, although it remains lower than the eurozone at about 1 percent. The eurozone inflation forecast has also been revised higher, forecast to hit 5.8 percent this year compared to 5.6 percent in the previous outlook.
BEVERAGES
Japanese beer on rebound
South Korean drinkers are warming to Japan again. Beer imports from Japan outpaced those from China for the first time since July 2019, when South Korean consumers boycotted goods from their neighbor amid a political tit for tat. South Korea imported 3,870 tonnes of beer from Japan last month — more than nine times the volume a year earlier — while imports from China dropped to 2,226 tonnes, Korea Customs Service data released on Monday showed. It is the latest sign of improved relations between the two US allies.
REAL ESTATE
Rent outside London rises
The average monthly rent on a newly let home outside of London surpassed £1,000 (US$1,249) for the first time last month, a report from broker Hamptons International showed. That is almost 8 percent higher than the same month last year, piling more pressure on tenants amid a cost-of-living crisis. “With rents on the open market rising quickly, tenants will face the choice of staying put or moving to a smaller home in a more affordable area,” Hamptons research head Aneisha Beveridge said. Meanwhile, the gap between inner and outer London rents widened to more than £1,100 last month from just £221 in June 2021, the report said.
AUTOMAKERS
Stellantis workers protest
Stellantis NV workers in Southern Italy protesting unsanitary bathrooms, a lack of work gear and insufficient heating have slowed down manufacturing of Alfa Romeo Tonales and Fiat Panda models. Some staff at the Pomigliano d’Arco plant close to Naples stopped working for two hours on Friday, their third day of protests, said Simone Marinelli, who heads the Italian Federation of Metalworkers’ automotive arm. Stellantis said it rejected accusations of a lack of attention to working conditions, an Italy-based spokesman said. The company always acts within the framework of labor contracts and with respect for its employees, he said.
AUTOMAKERS
Vingroup shares rise
Shares of Vingroup JSC jumped after announcing its electric vehicle (EV) maker unit would list in the US by merging with a blank-check company at an equity value of about US$23 billion. Vingroup rose as much as 6.2 percent yesterday in Ho Chi Minh, the biggest gain since April 3. At that value, EV manufacturer Vinfast is set to mark a record US listing by a company from Vietnam. Including debt, the unit would be valued at about US$27 billion, a statement released on Friday by the parent said. The merger with Black Spade Acquisition Co, a Hong Kong-based firm, is expected to close in the second half of the year.
Hon Hai Precision Industry Co (鴻海精密) yesterday said that its research institute has launched its first advanced artificial intelligence (AI) large language model (LLM) using traditional Chinese, with technology assistance from Nvidia Corp. Hon Hai, also known as Foxconn Technology Group (富士康科技集團), said the LLM, FoxBrain, is expected to improve its data analysis capabilities for smart manufacturing, and electric vehicle and smart city development. An LLM is a type of AI trained on vast amounts of text data and uses deep learning techniques, particularly neural networks, to process and generate language. They are essential for building and improving AI-powered servers. Nvidia provided assistance
DOMESTIC SUPPLY: The probe comes as Donald Trump has called for the repeal of the US$52.7 billion CHIPS and Science Act, which the US Congress passed in 2022 The Office of the US Trade Representative is to hold a hearing tomorrow into older Chinese-made “legacy” semiconductors that could heap more US tariffs on chips from China that power everyday goods from cars to washing machines to telecoms equipment. The probe, which began during former US president Joe Biden’s tenure in December last year, aims to protect US and other semiconductor producers from China’s massive state-driven buildup of domestic chip supply. A 50 percent US tariff on Chinese semiconductors began on Jan. 1. Legacy chips use older manufacturing processes introduced more than a decade ago and are often far simpler than
STILL HOPEFUL: Delayed payment of NT$5.35 billion from an Indian server client sent its earnings plunging last year, but the firm expects a gradual pickup ahead Asustek Computer Inc (華碩), the world’s No. 5 PC vendor, yesterday reported an 87 percent slump in net profit for last year, dragged by a massive overdue payment from an Indian cloud service provider. The Indian customer has delayed payment totaling NT$5.35 billion (US$162.7 million), Asustek chief financial officer Nick Wu (吳長榮) told an online earnings conference. Asustek shipped servers to India between April and June last year. The customer told Asustek that it is launching multiple fundraising projects and expected to repay the debt in the short term, Wu said. The Indian customer accounted for less than 10 percent to Asustek’s
Gasoline and diesel prices this week are to decrease NT$0.5 and NT$1 per liter respectively as international crude prices continued to fall last week, CPC Corp, Taiwan (CPC, 台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. Effective today, gasoline prices at CPC and Formosa stations are to decrease to NT$29.2, NT$30.7 and NT$32.7 per liter for 92, 95 and 98-octane unleaded gasoline respectively, while premium diesel is to cost NT$27.9 per liter at CPC stations and NT$27.7 at Formosa pumps, the companies said in separate statements. Global crude oil prices dropped last week after the eight OPEC+ members said they would