Yen tanks as Bank of Japan sticks to stimulus strategyReuters, NEW YORKThe Japanese yen fell against the US dollar on Friday, after the Bank of Japan bucked a wave of tightening and stuck with its ultra-accommodative stance, adding to soaring volatility in a currency markets hit by a series of rate hikes this week. The Bank of Japan (BOJ) went against the current on Friday, keeping all of its policy settings unchanged and vowing to defend its bond yield cap of 0.25 percent with unlimited buying. Japanese yen and US dollar banknotes are displayed on Wednesday. Photo: ReutersThe BOJ’s move knocked the yen, which on Wednesday hit a 24-year low of ￥135.6 per US dollar, broadly lower. The Swiss National Bank’s (SNB) surprise decision to raise rates by 0.5 percent continued to reverberate through markets.

Analysts see rate hikes dampening sales of propertyBy Crystal Hsu / Staff reporterThe central bank’s second interest rate hike would further slow this year’s property transactions, which have plunged by double percentage points in the first five months amid rising economic uncertainty, property analysts said yesterday. Historical data show interest rate hikes and credit controls are effective in dampening purchasing interest, explaining why buyers these days hesitate to make offers, the broker said. The rate hike, while mild and widely expected, would fuel property revaluation and raise investment hurdles, while sellers refuse to budge, making it difficult to close deals, Colliers Taiwan said. CBRE Taiwan (世邦魏理仕), another property broker, shared similar observations, saying that land deals this year would remain above long-term averages, albeit lagging behind the level seen last year. Evertrust Rehouse Co (永慶房屋) said people would feel the pinch when cumulative interest rate hikes reach 0.75 percentage points, from 0.375 percentage points at present.

Mega Financial union demands change of chairmanCOMPLIANCE: Overly strict money laundering measures under Michael Chang’s leadership have driven away clients and affected employees’ interests, the union saidBy Crystal Hsu / Staff reporterMega Financial Holding Co’s (兆豐金控) workers’ union yesterday called on the government to replace the company’s chairman, Michael Chang (張兆順), with a candidate who could boost the group’s earnings ability and employee morale. Mega Financial Holding Co workers protest against the company’s management team at the annual shareholders’ meeting in Taipei yesterday. Photo: Lee Chin-hui, Taipei TimesThe union added that it had conveyed its wishes to the Ministry of Finance, which has a decisive say on who may steer the bank-focused conglomerate given its dominant stake in Mega Financial. Chang took over the helm of Mega Financial after his predecessor stepped down to take responsibility for more than US$200 million in fines from US financial regulators for anti-money laundering compliance failures at its US banking branches in 2016 and 2018. The shareholders’ meeting approved a proposal to distribute cash dividends of NT$1.65 per share from last year’s earnings.

Musk offers few details in call with Twitter employeesReutersElon Musk on Thursday addressed Twitter employees for the first time, expressing his view that Twitter would need to cut its headcount, but offering few other new details about his US$44 billion planned takeover of the social media company. “I think advertising is very important for Twitter,” Musk said. I would probably talk to the advertisers and say, like: ‘Hey, let’s just make sure the ads are as entertaining as possible.’”Musk, who was expected to provide assurance to Twitter employees during his first meeting, did not offer an update on the deal closing. They also demanded on Slack that the moderator press Musk on his views about remote work, as Twitter currently allows employees relatively free rein to work remotely or in the office. Musk said he believed Twitter staff should lean toward working in an office, but expressed willingness to make some exceptions.

Taiwan shows off latest homemade armored vehicleBy Ben Blanchard / Reuters, Jiji Township, TaiwanThe military yesterday showed off its latest domestically produced armored vehicle, the CM-34 Clouded Leopard, at a remote manufacturing site in the nation’s central mountains. Those fears have become more pronounced over the past few years as Beijing has stepped up military activities near Taiwan. Staff members work on the production line of the military’s latest armored vehicle — the CM-34 Clouded Leopard — in Jiji Township, Nantou County, yesterday. The vehicle is named after Taiwan’s clouded leopard. A locally produced CM-34 Clouded Leopard armored vehicle is driven through its paces at a testing ground on a military base in Nantou County yesterday.

Ministry blasts Putin’s remarks about TaiwanBy Yang Cheng-yu and Liu Tzu-hsuan / Staff reporter, with staff writerThe Ministry of Foreign Affairs yesterday denounced Russian President Vladimir Putin for disparaging Taiwan’s sovereignty by saying that Taiwan issues are “China’s internal affairs.”The ministry strongly condemned Putin’s “false” remarks that “undermined the sovereignty of the Republic of China,” ministry spokeswoman Joanne Ou (歐江安) told a news briefing. Ministry of Foreign Affairs spokeswoman Joanne Ou speaks at a news briefing in Taipei yesterday. Screengrab from the Ministry of Foreign Affair’s virtual news conferenceOu said that Taiwanese elect their government in free and fair elections, adding that only the government in Taipei can represent Taiwan. The ministry also thanked the US for reiterating that it would ensure that Taiwan has the ability to defend itself and deter aggression. US Secretary of State Antony Blinken made the remarks in an interview with the US’ Public Broadcasting Service on Tuesday.

TAIEX shares close lower in wake of Fed rate hikeSOUND FUNDAMENTALS: TSMC shares’ earlier gains yesterday were wiped out, but it still closed above its previous day’s level, after rising 0.4 percent to NT$508Staff writer, with CNAThe TAIEX yesterday closed below 16,000 points after eroding earlier gains, as many investors rushed to sell following an initial upturn, dealers said. The TAIEX closed down 160.64 points, or 1 percent, at 15,838.61. “The 75 basis-point rate increase by the Fed had been priced in after the global markets. “Although the rate hike decision removed market uncertainty for now, concerns are growing that higher borrowing costs will hurt the economy, as the Fed is expected to continue its rate hike cycle down the road,” Lu said. Old economy stocks were also affected by a retreat from their earlier gains, with the transportation sector falling 4.8 percent in the wake of a US government initiative to rein in fast-growing ocean cargo shipping rates, dealers said.

The unpredictable effects of COVID-19 and unstable supply chains have increased uncertainty worldwide regarding consumer demand and the shipping of products, Pegatron said in its annual report. “Pegatron will continue monitoring the supply of key components and working closely with its suppliers to optimize capacity allocations,” the company said. Pegatron’s board of directors last month approved a plan to invest an additional US$50.61 million to expand its manufacturing hub in North America, the company said in a regulatory filing. Pegatron said it had already planned to invest US$164 million on production lines in North America so that it could accommodate an increase in orders in the region. Last quarter, communication products were the biggest revenue contributor, accounting for 60 percent of total revenue, the company said.

Japan refiner to shut plant after 53 years on low salesBloombergJapan’s Idemitsu Kosan Co is to shut an oil refinery that has been running for 53 years in the country’s west, as domestic demand for fuel continues to decline and a global push to decarbonize intensifies. The company is to halt processing at its Yamaguchi plant by the end of March 2024, it said in a statement on Tuesday. Idemitsu would consider new uses for the site, while continuing to store oil and generate solar power there. Idemitsu is to make Seibu Oil Co — which operates the Yamaguchi refinery — a wholly owned subsidiary by acquiring stakes held by shareholders UBE Corp, Chugoku Electric Power Co and others. The refiner plans to increase its stake in Seibu Oil to 66.9 percent from 38 percent.

Lithuania’s Taipei office to open in autumnReuters, TAIPEILithuania plans to open a representative office in Taiwan in September, one of its deputy ministers said yesterday, part of a bolstering of ties with the nation that has infuriated China and led to exports falling to almost zero. Lithuania has come under sustained pressure from China to reverse a decision last year to allow Taiwan to open a de facto embassy in the capital, Vilnius, under its own name. Photo: Tu Chien-jung, Taipei TimesSpeaking to reporters in Taipei, Lithuanian Vice Minister of the Economy and Innovation Jovita Neliupsiene said Lithuania hoped its reciprocal office in Taiwan would open “as of September,” adding that she had scouted out some locations during her visit. China had been an important export partner, but Lithuania’s exports to China in the first quarter had fallen to “close to zero,” compared with last year, Neliupsiene said. The Lithuanian government is accepting applications for the first head of the Lithuanian trade office in Taiwan, she told a news conference in Taipei as she wrapped up the delegation’s four-day visit.

EDITORIAL: The freedom to chooseThe global order is in a state of flux. During an interview in Tokyo on Tuesday last week, Lithuanian Minister of Foreign Affairs Gabrielius Landsbergis said that none of the European initiative members could pinpoint any benefit from it. They did not suspect that the initiative was meant to limit their freedom to engage with Taiwan. China does not seem to understand eastern European countries’ reservations about support for Russia. Having the freedom to choose will make it more likely that they enter an alliance as firm partners.

Taiwanese quietly attend US-Japan security forumBy Lin Tsui-yi and Jonathan Chin / Staff reporter in Tokyo, with staff writerA Taiwanese military delegation yesterday attended the opening of the Pacific Amphibious Leaders Symposium (PALS) hosted jointly by the US Marine Corps and the Japan Ground Self-Defense Force in Tokyo. Military attaches from a number of countries participate in the opening of the Pacific Amphibious Leaders Symposium in Tokyo yesterday. Photo: Lin Tsui-yi, Taipei TimesThe delegates kept a low profile and attended the event in civilian clothing, with the organizers refraining from displaying the Republic of China flag. US Marine Forces Pacific Commander Lieutenant General Steven Rudder and the Japanese Chief of the Ground Staff Yoshihide Yoshida are leading the three-day event. In 2019, Taiwan returned to PALS with a delegation headed by Major General Liu Erh-jung (劉爾榮), then-commander of the Joint Operations Training Base.

Sea cuts jobs in shopping, food amid global volatilityBloombergSea Ltd (冬海) is making its first major job cuts in areas spanning shopping and food, joining other tech firms downsizing this year in anticipation of unprecedented market and economic volatility. The cuts would also extend across its Mexico, Argentina and Chile teams, as well as the cross-border team supporting Spain. He said the job cuts are to ensure that the business remains in the “best possible position” to continue scaling sustainably. The dismissals come after Sea revised its full-year outlook for e-commerce sales, its main source of revenue, to US$8.5 billion to US$9.1 billion from its previous guidance of US$8.9 billion to US$9.1 billion. “This reallocation of resources to further focus on our priorities will help us grow our business even better,” Feng wrote.

Addressing anti-Taiwan hate crimeBy Li-Lin ChengToday is the one-month anniversary of the church shooting in Laguna Woods, California. We call for peace and attention to the hate crime imposed on innocent American citizens. The NATPA condemns any form of violence and the spread of China’s agenda through aggression inflicted on Taiwanese Americans. As reported by the press, the gunman was motivated by “anger over the political tensions between China and Taiwan,” and his “anti-Taiwan views” had led to the “politically motivated hate incident.” The FBI has announced it had enough evidence to open a federal hate crime investigation. Second, for lawmakers: Define threatening language from China against Taiwan or Taiwanese groups and/or individuals by using force, violence and military power to promote China’s unification agenda as a hate crime.

Strike a risk to S Korea economyBloombergThe risk to South Korea’s economy and global supply chains is growing as a nationwide trucker strike widens, curbing output at top steelmaker POSCO Holdings Inc and causing increasing damage to the petrochemicals sector. Truckers from the Korean Confederation of Trade Unions protest as a freight truck drives past at the Inland Container Depot in Uiwang, South Korea, yesterday. Photo: EPA-EFEThe Korea Petrochemical Industry Association called for a halt to the strike, saying the “damage is snowballing” and would affect the national economy. A prolonged dispute threatens to have ripple effects across the globe, as South Korea is the largest exporter of memory chips and is home to some of the world’s biggest auto companies. Output by cement companies has fallen significantly, while production by some ready-mixed concrete companies has been suspended, the transport ministry said in a statement.