India increases interest rates to pre-pandemic level‘GREATER FRAGMENTATION’: The central bank’s Shaktikanta Das said that it was disquieting that ‘globalization of inflation is coinciding with deglobalization of trade’AFP, MUMBAI, IndiaThe Reserve Bank of India yesterday hiked interest rates for the third time in four months as Asia’s third-largest economy contends with a widening trade deficit and weakening currency. “Successive shocks to the global economy are taking their toll,” Reserve Bank of India Governor Shaktikanta Das said in a televised address, pointing to surging inflation and lower global growth. Reserve Bank of India Governor Shaktikanta Das speaks at a news conference at the central bank’s headquarters in Mumbai, India, yesterday. Photo: AP“Disquietingly, globalization of inflation is coinciding with deglobalization of trade,” Das said. The central bank retained its growth forecast at 7.2 percent for the 2022-2023 financial year and retained its inflation forecast at 6.7 percent.

TSMC to slow production as Intel delays chip launchBy Lisa Wang / Staff reporterTaiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, has decided to slow down its 3-nanometer chip production as Intel Corp, one of its major customers, plans to push back the launch of its new Meteor Lake tGPU chipsets to the end of next year, market researcher TrendForce Corp (集邦科技) said yesterday. Based on Intel’s original schedule, TSMC was to start producing the new chipsets in the second half of this year using its 3-nanometer technology, which would be the most advanced technology in global chip production, TrendForce said. Apple plans to adopt the 3-nanometer technology for its M-series processors and A17 Bionic chip, it said. TSMC has said that it planned to start mass production of 3-nanometer chips in the second half of this year. In addition, TSMC might see an additional revenue boost from Intel, which could outsource production of its computing tiles to TSMC if its Intel 4 process technology development stagnates, the researcher said.

PLA starts live-fire drills near Taiwan‘IRRATIONAL ACTS’: The defense ministry condemned the drills, during which China tested successors to missiles deployed during the Taiwan Strait Crisis in 1995 and 1996By Jonathan Chin / Staff writerChina yesterday fired several Dongfeng ballistic missiles as it began four days of unprecedented military drills off Taiwan proper following US House of Representatives Speaker Nancy Pelosi’s visit to Taipei the previous day. The Chinese People’s Liberation Army (PLA) from 1:56pm to 4pm fired 11 Dongfeng missiles into waters north, east and south of Taiwan proper, the Ministry of National Defense (MND) said. Chinese military helicopters yesterday fly past Fujian Province’s Pingtan Island, one of China’s closest points from Taiwan. The Ministry of Foreign Affairs protested the drills, saying they threatened Taiwan’s national security, contributed to rising regional tensions, and caused disruptions in global trade and communications. “To have five Chinese missiles fall within Japan’s EEZ like this is a first,” Japanese Minister of Defense Nobuo Kishi told reporters.

Council of Agriculture Minister Chen Chi-chung speaks at a press conference in Taipei yesterday. The council estimates that more than 8,000 tonnes of citruses, 5,500 tonnes of largehead hairtails and 1,000 tonnes of Japanese horse mackerel would be affected, he said. Aside from helping fishers and farmers seek new markets, the council would also provide subsidies, he added. Separately, Executive Yuan spokesman Lo Ping-cheng (羅秉成) said all government agencies should be prepared for the possibility of China arbitrarily banning more Taiwanese products. Chu called for continued dialogue and not mutual animosity, adding that this is a principle that the KMT upholds.

The Chinese military on Tuesday announced it would hold air and sea live-fire exercises in six locations off Taiwan proper from noon today until noon on Sunday. We will not irrationally escalate conflicts, but we will resolutely safeguard national sovereignty and national security,” he said. A map showing locations where Chinese People’s Liberation Army (PLA) will conduct military exercises and training activities including live-fire drills. China yesterday said the drills in the Taiwan Strait were “necessary and just” in the wake of Pelosi’s visit. The joint provocation by the US and Taiwan came first, China’s just defense came after,” Hua said.

Taiwan’s Tseng wins in MexicoRUSTY: Seven-time Grand Slam champion Venus Williams lost the first singles match she has played since losing to Taiwan’s Hsieh Su-wei 49 weeks ago in ChicagoStaff writer, with AFP, WASHINGTONTaiwan’s Tseng Chun-hsin on Monday defeated Nick Chappell of the US 6-4, 6-4 at the Los Cabos Open in Mexico, his third victory on the ATP Tour this season. Taiwan’s Tseng Chun-hsin returns to Nick Chappell of the US in their Los Cabos Open men’s singles match in Mexico on Monday. Photo: EPA-EFEIn Washington, three-time Grand Slam champion Andy Murray of Britain crashed out in the opening round of the Citi Open, falling to Sweden’s Mikael Ymer. All I can do is just play another tournament and play better.”Williams had not played a WTA singles match since falling to Taiwan’s Hsieh Su-wei 49 weeks ago in Chicago. Two-time Grand Slam champion Simona Halep, coming off a Wimbledon semi-final run, beat Spain’s Cristina Bucsa 6-3, 7-5.

The data for last month should be the poorest this year, as they reflected mainly deals taking place in June when daily COVID-19 cases were high, analysts said. Compared with June, housing transactions in Tainan slumped 18.2 percent to 1,836 units and tumbled 17.6 percent to 3,452 in Taichung, data from local governments showed. Interest rate hikes tend to drive buyers to the sidelines, Chen said. Pundits are looking at two more rate adjustments this year barring a significant slowdown in consumer prices, from more than 3 percent now. Home deals in New Taipei City fell 12.9 percent to 4,697 units and declined 7.3 percent to 2,273 units in Taipei.

Taiwan, India united in democracyBy Rup Narayan DasOn Aug. 15, India is to celebrate its Independence Day. Both India and Taiwan have had a checkered history in their trysts with democracy. The growth and prosperity of India and Taiwan achieved through democratic means are not palatable to the autocratic regime, and Beijing never loses an opportunity to debunk the democratic credentials of India and Taiwan. It is in the larger interest of democracy, and in the interests of India and Taiwan that the two need to collaborate and learn from each other to make democracy robust and bolster people’s faith and trust in the efficacy of democracy. However, unlike Taiwan, India is a vast and complex country.

WET-BULB TEMPERATUREWet-bulb temperature (WBT) combines dry air temperature (as you’d see on a thermometer) with humidity — in essence, it is a measure of heat-stress conditions on humans. “The [wet-bulb] temperature reading you get will actually change depending on how humid it is,” says Kristina Dahl, a climate scientist at the Union of Concerned Scientists. (At the UK’s 19 July peak temperature, relative humidity was approximately 25 percent and the wet-bulb temperature about 25 degrees Celsius.) Humans usually regulate their internal body temperature by sweating, but above the wet-bulb temperature, we can no longer cool down this way, leading our body temperature to rise steadily. “Our data is actual human subject data and shows that the critical wet-bulb temperature is closer to 31.5 degrees Celsius,” he says.

Usually, the transactions are negotiated between financial institutions, or conducted by brokers as an intermediary between buyers and sellers. Therefore, it can effectively reduce financial institutions’ capital accrual while improving their efficiency of fund utilization, the exchange said. Moreover, in the past, domestic financial institutions usually conducted central clearing through foreign settlement institutions such as the London Clearing House, and the fees were very high, it said. The exchange’s OTC central clearing mechanism hence allows transactions to be handled domestically, which provides financial institutions more convenience along with lower operating costs, it added. To ensure control over the core technologies behind Taiwan’s financial market, the TAIFEX independently developed the clearing system by integrating 15 modules rather than purchasing one, it said.

Manufacturing PMI shows China faces contractionAFP, BEIJINGChina’s manufacturing activity logged a surprise drop last month, official data showed yesterday, on the back of weak demand and as strict “zero COVID-19” restrictions continue to cast a pall on growth. The purchasing managers’ index (PMI), a key gauge of manufacturing activity in the world’s second-biggest economy, was 49.0, down from 50.2 in June and below the 50-point mark separating growth from contraction, Chinese National Bureau of Statistics (NBS) data showed. “In July, the manufacturing PMI dropped ... due to factors such as the traditional off-season for production, insufficient release of market demand and decline in prosperity of high-energy-consuming industries,” Zhao Qinghe (趙清河), a senior statistician at the bureau, said in a statement. “In acknowledging the difficulties, the government has finally become flexible towards this year’s growth target,” ANZ Research analysts said in a note. China’s non-manufacturing PMI last month dropped to 53.8 from 54.7 in June, NBS data showed.

Oil posts first back-to-back monthly decline since 2020BloombergOil fell for a second consecutive month as a deteriorating demand outlook offset concerns about tight physical supplies. West Texas Intermediate (WTI) for September delivery on Friday rose 2.28 percent to US$98.62, bringing this week’s gain to 4.14 percent. Photo: EPA-EFEFutures nevertheless recorded their first back-to-back monthly decline since 2020 as fears of an economic slowdown fueled bearish sentiment across markets. The US economy shrank for a second quarter as rampant inflation undercut consumer spending, while Citigroup Inc said there are signs the oil market is moderating. The surge in energy prices has underpinned oil producer earnings, with Exxon and Chevron Corp joining Shell PLC with record profits.

Gold at three-week high as Fed might slow rate hikesBloombergGold on Friday hit a more than three-week high, amid speculation that the US Federal Reserve could slow the pace of interest rate increases as the US economy slows. While the Fed raised rates by 75 basis points again this week, data showing that the US is in a technical recession signaled that the central bank could become less aggressive as it continues to combat inflation. Gold markets are set-up for additional price weakness to ensue,” TD Securities senior strategist Daniel Ghali said in a note. “If the US economic data turn out to be weaker next week, gold is likely to make further gains,” Commerzbank AG analyst Carsten Fritsch said in a note. “This applies in particular to the report on the labor market, as Fed Chair Powell has still been describing the market as robust, which besides the persistently high inflation is another argument in favor of further rate hikes,” Fritsch said.

The world’s biggest mobile phone chip supplier said it would review its previous forecast of 15 percent of compound annual growth over the next three years. MediaTek also slashed its forecast for global 5G smartphone chip shipments to 600 million units this year. The chipmaker expects revenue this quarter to decline between 1 and 9 percent, coming in at NT$141.7 billion to NT$154.2 billion (US$4.73 billion to US$5.15 billion). Mobile phone chips outpaced the rest of the chip businesses last quarter, attributable to robust demand for its flag-ship and high-end chips, it said. Mobile phone chips accounted for 54 percent of the company’s overall revenue last quarter, it added.

India concerned about Chinese ship in Sri LankaReuters, NEW DELHIIndian and Chinese foreign ministers were to attend a regional conference in Uzbekistan yesterday, a day after New Delhi expressed concern over a Chinese military ship’s planned visit to a strategic port in India’s southern neighbor Sri Lanka. An Indian navy officer stands in front of India’s and Sri Lanka’s national flags in Colombo, Sri Lanka, on April 2, 2018. The Pentagon’s annual report on China’s military modernization says the Yuan Wang ships are operated by the Strategic Support Force of the Chinese People’s Liberation Army. Sri Lanka is a “dialogue partner” in the group, but it was not immediately clear if it was attending. Sri Lanka angered India in 2014 when it allowed a Chinese submarine and a warship to dock in Colombo.