JAPAN
Parliament boosts spending
Parliament yesterday passed a record ￥31.9 trillion (US$296.72 billion) extra budget, to shore up the economy amid the COVID-19 pandemic. The spending provides financing for struggling companies, payroll subsidies and aid to the medical system. It would help fund a ￥117 trillion stimulus package unveiled last month that doubles the scale of Japan’s virus response. The second record extra budget since April comes amid the nation’s worst economic crisis in decades, but it also adds to a mountain of public debt. S&P Global Ratings this week cut its outlook on Japan’s sovereign bond rating, citing the setback to debt stabilization efforts. To fund its additional general account spending, the government is to boost its debt issuance by ￥59.5 trillion, with some of the money used for government-led financing programs, the Ministry of Finance said.
GAMING
Sony reveals PS5
Sony Corp on Thursday unveiled two versions of its upcoming PlayStation 5 (PS5) game console and an array of new games from the virtual stage, showcasing its next-generation lineup for the first time ahead of a holiday season showdown against Microsoft Corp’s Xbox. A new Spider-Man game would be ready for the holidays, alongside the black-and-white home console. Sony next year would also have a new Gran Turismo racing game and an enhanced PS5 version of Take-Two Interactive Software Inc’s bestselling Grand Theft Auto V. The second variant of the PS5, dubbed the Digital Edition, would eschew the Blu-ray disc drive, leaving downloads as the only way to acquire content. This move could cut out retailers like Amazon.com Inc, GameStop Corp and Walmart Inc.
GERMANY
Cabinet primes stimulus
The government is moving to implement the first elements of a sweeping 130 billion euro (US$147.2 billion) stimulus package to help pull its economy out of the worst recession since World War II. At a special meeting yesterday, Chancellor Angela Merkel’s Cabinet was due to sign off on several key initiatives agreed last week. The goal is to get the bulk of the plan approved by parliament before a two-month recess. A value-added tax cut designed to reinvigorate demand after weeks of lockdown restrictions is set to go into effect on July 1. The Cabinet is also to consider emergency aid for small and mid-sized companies as well as a family bonus of 300 euros per child. The government intends to increase borrowing this year by at least 30 billion euros, requiring further suspension of constitutional debt restrictions, people familiar with the plan have said.
STOCK MARKETS
Asia has biggest IPO week
China’s No. 2 online retailer JD.com Inc’s (京東) US$3.9 billion Hong Kong listing has given Asia its biggest week for initial public offerings (IPOs) this year, joining a global rebound in initial share sales. Companies priced US$4.37 billion worth of listings, the most since the last week of last year, data compiled by Bloomberg showed. JD makes up the bulk of the volume, with the rest coming from listings in China and South Korea. JD’s share sale, the second-biggest this year globally, follows Chinese gaming giant NetEase Inc’s (網易) US$2.7 billion Hong Kong listing last week. Listings have been rebounding on the back of stronger markets and lower volatility, as issuers look to take advantage of what could be a short-lived window after being forced to sit on the sidelines earlier in the year.
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Chizuko Kimura has become the first female sushi chef in the world to win a Michelin star, fulfilling a promise she made to her dying husband to continue his legacy. The 54-year-old Japanese chef regained the Michelin star her late husband, Shunei Kimura, won three years ago for their Sushi Shunei restaurant in Paris. For Shunei Kimura, the star was a dream come true. However, the joy was short-lived. He died from cancer just three months later in June 2022. He was 65. The following year, the restaurant in the heart of Montmartre lost its star rating. Chizuko Kimura insisted that the new star is still down
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors
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