UNITED STATES
Biden latches onto S&P 500
US President Joe Biden touted the S&P 500 index’s record high as a sign of US economic strength, making a rare comment on the stock market after a tough week in his re-election bid that focused attention on his age and mental acuity. The S&P 500 topped 5,000 for the first time on Friday, spurred by big-tech stocks and speculation that the US Federal Reserve will cut interest rates soon. By contrast, Biden’s week included gaffes in which he mixed up the names of world leaders — and a special counsel’s report said the 81-year-old president showed “diminished faculties and faulty memory.”
ENERGY
Tax savings help ONGC
Oil and Natural Gas Corp (ONGC), India’s largest oil and gas explorer, posted better-than-expected quarterly profit as lower windfall tax helped offset impact of the decline in oil and gas prices. Still, net income fell 14 percent to 95.4 billion rupees (US$1.1 billion) for the quarter ended Dec. 31, compared with 110.4 billion rupees a year-ago, according to an exchange filing on Saturday. Revenue fell 9.8 percent to 347.9 billion rupees, according to the state-owned explorer, which accounts for 67 percent of India’s oil and 54 percent its gas production.
ITALY
Bonds pitched in TV show
Italian Prime Minister Giorgia Meloni’s plan to shift the burden of Italy’s debt to her voters reached a new milestone when a pitch for government bond sales ran during the nation’s most iconic song contest. The advertisement, which appeared during a public TV broadcast from the annual Sanremo Music Festival on Friday night, promoted an issuance of the BTP Valore bond later this month as offering an “advantageous return exclusively dedicated to small savers.” Getting ordinary savers to buy debt, along with taking measures to avoid any worsening of public finances, are now key pillars of Rome’s strategy to stay sustainably afloat.
AUTOMAKERS
Ford working on cheap EVs
Ford Motor Co is working on inexpensive, small electric vehicles (EVs) to stem its electric vehicle losses and take on Tesla Inc and Chinese automakers. Chief executive officer Jim Farley revealed the plans to analysts on Tuesday after the automaker announced adjusted earnings per share of US$0.29 for the fourth quarter of last year, more than double the US$0.13 analysts expected on average. Fourth-quarter revenue of US$46 billion surpassed the US$40.3 billion analysts expected. The small team is being led by Alan Clarke, executive director of advanced EV development, who came to Ford two years ago after more than 12 years developing models for Tesla.
BANKING
Barclays to tamp fossil fuels
British bank Barclays PLC said on Friday it would stop directly financing its energy clients’ new oil and gas projects. As part of its updated climate strategy, the bank added it would scale back lending for existing fossil fuel projects as the sector faces intense pressure from activist investors to help tackle climate change. Additional curbs will be introduced on unconventional oil and gas, including extra heavy oil, Barclays said. The bank also expects “energy clients to produce transition plans or decarbonization strategies” by next year, it said, adding that it would require energy clients to commit to other targets, including the reduction of methane and carbon emissions from operations.
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
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
CHANGING JAPAN: Nvidia-powered AI services over cellular networks ‘will result in an artificial intelligence grid that runs across Japan,’ Nvidia’s Jensen Huang said Softbank Group Corp would be the first to build a supercomputer with chips using Nvidia Corp’s new Blackwell design, a demonstration of the Japanese company’s ambitions to catch up on artificial intelligence (AI). The group’s telecom unit, Softbank Corp, plans to build Japan’s most powerful AI supercomputer to support local services, it said. That computer would be based on Nvidia’s DGX B200 product, which combines computer processors with so-called AI accelerator chips. A follow-up effort will feature Grace Blackwell, a more advanced version, the company said. The announcement indicates that Softbank Group, which until early 2019 owned 4.9 percent of Nvidia, has secured a
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