Morgan Stanley weighs cutting Asia jobsBloombergMorgan Stanley is considering a 7 percent cut in its Asia-Pacific investment banking workforce, with China taking the biggest hit as deteriorating relations with the US and weaker economic growth curb dealmaking, people familiar with the matter said. People stand outside Morgan Stanley’s headquarters in New York on Jan. 17. The New York-based firm already axed about 50 investment-banking jobs in Asia by the end of last year after a plunge in deals, and a significant number of those were China-focused roles. Asia has been contributing about 13 percent to Morgan Stanley’s net revenue in the past five years, reaching US$6.7 billion at the end of last year. Asia delivered its third highest quarter ever, aided by the policy dynamics in Japan and the China reopening, the bank said on its earnings call with analysts last month.

China misses expectations for AprilAFP, BEIJINGChina’s economic data for last month missed expectations, data released yesterday showed, as low demand and high youth unemployment led to a patchy recovery after lifting strict COVID-19 rules. Retail sales — a key indicator of domestic consumer activity — grew 18.4 percent year-on-year, Chinese National Bureau of Statistics data showed. Overall urban unemployment slipped to 5.2 percent, from 5.3 percent in March. “The recovery of demand is still insufficient,” Chinese National Bureau of Statistics spokesperson Fu Linghui (傅令輝) told a news conference. “The challenging global picture will prevent much pick-up in Chinese exports.”Low domestic demand despite low inflation has slowed China’s economic recovery.

Taiwan Cooperative income soarsBy Crystal Hsu / Staff reporterTaiwan Cooperative Financial Holding Co’s (合庫金控) net income grew 12.42 percent to NT$5.03 billion (US$163.29 million) last quarter, as global capital markets regained some stability, favorable for financial operations and investment dealings to drive profit growth, the state-run bank said yesterday. People stand outside Taiwan Cooperative Financial Holding Co’s headquarters in Taipei’s Songshan District on April 24. Photo: Chen Mei-ying, Taipei TimesMain subsidiary Taiwan Cooperative Bank (合作金庫銀行) generated NT$44.57 billion, accounting for 90.14 percent of overall profit and offsetting Taiwan Cooperative Bills Finance Corp’s (合作金庫票?金融) losses of NT$59 million linked to higher provision costs, Chen said. Net interest income at Taiwan Cooperative Bank shrank 2.23 percent to NT$85.39 billion, while fee income declined 2.27 percent to NT$15.92 billion, company data showed. Taiwan Cooperative Bank expects to expand its mortgage business this year by targeting customers with real demand, they said.

Borrell urges EU crackdown on India fuelReutersThe EU should crack down on India reselling Russian oil into Europe as refined fuel, including diesel, EU High Representative for Foreign Affairs and Security Policy Josep Borrell said in an interview with the Financial Times. India has in the past year emerged as a top buyer of Russian oil following Moscow’s invasion of Ukraine in February last year. Russia’s largest oil producer PJSC Rosneft Oil Co and top Indian refiner Indian Oil Corp have also signed a term deal to substantially increase and diversify oil grades delivered to India. India typically exported an average of 154,000 barrels per day of diesel and jet fuel to Europe before Russia’s invasion of Ukraine. However, that has increased to 200,000 barrels per day after the EU banned Russian oil products imports from Feb. 5 this year, Kpler data showed.

Vodafone to slash 11,000 jobs in turnaround strategyBloombergVodafone Group PLC’s new chief executive officer, Margherita Della Valle, yesterday unveiled a plan to revive growth at the telecom giant, pledging to slash jobs and simplify the company’s corporate structure. A woman walks past a Vodafone Group PLC store in London on May 16, 2017. To consistently deliver, Vodafone must change,” she said in the statement. Much of the decline is due to a change in German law which affects how Vodafone is able to collect money from customers, a spokesman said. A company-compiled consensus of analyst estimates had put the figure at 3.6 billion euros.

Opposition parties agree to form ruling coalition in ThailandReuters, BANGKOKThailand’s two main opposition parties yesterday agreed to form a ruling coalition after they trounced in a weekend election military-backed rivals that have controlled government for nearly a decade. Photo: EPA-EFEPita Limjaroenrat, Move Forward’s 42-year-old leader, proposed an alliance of six parties that would command 309 seats. That would be short of the 376 seats needed to ensure he is elected as prime minister. Asked about the senate, he said all sides must respect the election outcome and there was no use going against it. “Pheu Thai has no plan to form any other government,” party leader Chonlanan Srikaew told a news conference.

HSBC targets ‘mid-teens’ Asia returns amid pressureBloombergHSBC Holdings PLC said it is targeting return on tangible equity for its Asia business that is in the “mid teens,” amid pressure from its top shareholder to improve returns. It has taken specific aim at the lender’s returns for Asia, which it said stood at 10.5 percent last year, compared with 13.8 percent for its Asian peers on average. HSBC Holdings PLC’s logo is displayed on its headquarters in Hong Kong on Aug. 4, 2020. The bank, which counts Hong Kong as its biggest market, has also been diversifying its presence in other markets in the region, amid rising geopolitical tension. The lender said it would be holding a week-long seminar for investors and analysts in Hong Kong and Singapore to discuss its ambitions.

EDITORIAL: Wealth fund proposal lacks reasonSome opposition lawmakers have proposed tasking the central bank with creating a sovereign wealth fund financed by the nation’s foreign exchange reserves to boost investment returns. Taiwan has the world’s fourth-largest foreign exchange reserves, which last month rose for a record sixth consecutive month. Norway’s sovereign wealth fund, the Norwegian Government Pension Fund Global, the biggest of its kind, lost US$167 billion last year, with an annual return rate of minus-13.9 percent. Large foreign exchange reserves are a protection tool and can provide emergency capital for local lenders during tough times. Before the government can consider setting up a new sovereign wealth fund, there are several questions that need to be answered: What is the purpose of setting up a new fund?

Vietnam shoemaker to cut about 6,000 jobs on low demandAFP, HANOIOne of Vietnam’s largest shoe manufacturers for brands such as Nike Inc and Adidas AG would cut thousands of jobs at the end of next month, blaming a slump in orders, Vietnamese state media reported on Saturday. Employees work at a shoe factory in Hanoi, Vietnam, on Dec. 29, 2020. Photo: ReutersPouYuen Vietnam Co, a unit of Taiwan-based Pou Chen Corp (寶成工業), told local authorities that it would lay off almost 6,000 workers with permanent contracts from the end of next month, VNExpress reported. “This will be the biggest layoff since PouYuen started its operation in Ho Chi Minh City in 1996,” it said. RISING unemploymentMore than 630,000 workers lost their jobs or had their hours cut in Vietnam last year, the Vietnamese Ministry of Labor, Invalids and Social Affairs said.

New Twitter CEO to ‘transform’ platform‘EXCITED’: Elon Musk’s choice of an advertising veteran to take over the top job could indicate that the company aims to revamp its declining advertising revenueReutersNewly appointed Twitter Inc chief executive officer Linda Yaccarino on Saturday wrote on Twitter that she has been inspired by owner Elon Musk’s vision to create a brighter future, and is excited to help transform the social media platform. It was the first time Yaccarino has spoken publicly since the news broke on Thursday last week that she was in talks to become the next CEO of Twitter. I’m excited to help bring this vision to Twitter and transform this business together!” Yaccarino wrote. Since Musk acquired Twitter, advertisers have fled the platform, worried that their ads could appear next to inappropriate content after the company lost nearly 80 percent of its staff. Musk, who is also the CEO of electric-vehicle maker Tesla Inc, said that bringing Yaccarino on would help him devote more time to Tesla.

Fuel prices to rise due to US jobs data, OPEC cutsBy Chen Cheng-hui / Staff reporterGasoline prices in the nation are to rise NT$0.2 per liter this week, while the cost of diesel fuel is to increase by NT$0.3 per liter, CPC Corp, Taiwan (CPC, 台灣中油) and Formosa Petrochemical Corp (台塑石化) announced separately yesterday. The rises in fuel prices following drops of NT$1.0 per liter for gasoline and NT$0.2 per liter for diesel comes after international crude oil prices rose last week on the back of better-than-expected US employment figures for last month and an expanded output cut by OPEC+ this month, CPC said. CPC said that based on its floating oil price formula, the cost of crude oil was 1.15 percent higher last week than a week earlier. Effective today, gasoline prices at CPC and Formosa stations are to rise to NT$28.8, NT$30.3 and NT$32.3 per liter for 92, 95 and 98-octane unleaded gasoline respectively, the companies said. The price of premium diesel is to increase to NT$27.6 per liter at CPC stations and to NT$27.4 at Formosa pumps, they said.

Stephen M. Young On Taiwan: Spring Thoughts on Taiwan’s PoliticsHaving recently returned from a productive visit to Taiwan, hosted by the Global Taiwan Institute (GTI), I wanted to capture impressions of my favorite island while they are still fresh. Our delegation met with a broad range of key Taiwan figures, including those in the ruling DPP as well as the opposition KMT. Our visit included a lengthy and informal visit with President Tsai Ing-wen (蔡英文) at her residence, including an introduction to the presidential cats and dogs. We also saw a range of DPP officials, including Vice President William Lai (賴清德), Foreign Minister Joseph Wu (吳釗燮), and President Tsai. During the trip we had a relaxed exchange with President Tsai, who was looking forward to new adventures following the end of her second term in office in early 2024.

The Taiwan Tax Agreement Act marks a step in US lawmakers’ efforts to call on Washington to address the tax issue with Taipei, after the US Senate reached a similar resolution in March. If Taipei and Washington can sign a tax agreement, the estimated withholding tax rate could be reduced, and Taiwanese and US businesses can avoid being double-taxed. A comprehensive tax agreement also includes clauses on exchanges of tax information, dispute resolution and combating tax evasion. If Taipei and Washington sign a tax agreement, Taiwan could also obtain tax information on Taiwanese in the US, as it would have a reciprocity mechanism. Considering the benefits of easing the tax burden and increasing information transparency, a bilateral tax agreement would create a win-win situation for Taiwan and the US.

Asian shares mostly fall on US bank, China fearsAP, TOKYOAsian shares on Friday mostly declined on looming worries over US banks and lagging demand from China, the region’s major driver of growth. “Asian equities struggled for direction after weak inflation data in China pointed to weakening demand,” SPI Asset Management managing partner Stephen Innes said. In Taipei, the TAIEX closed down 12.28 points, or 0.08 percent, at 15,502.36, falling 0.8 percent from a week earlier. Japan’s benchmark Nikkei 225 gained 0.9 percent to finish at 29,388.30, as companies such as Nissan Motor Co gained after reporting relatively favorable earnings. India’s SENSEX gained 123.38 points, or 0.2 percent, to 62,027.90, rising 1.59 percent for the week.

Oil declines for fourth consecutive week on persistent demand concernsBloombergOil on Friday slumped near US$70 to mark a fourth-straight week of losses as concerns about demand growth persist. West Texas Intermediate for June delivery fell 1.17 percent to US$70.04 per barrel, down 1.82 percent from the previous week. Brent crude for July delivery fell 1.08 percent to US$74.17 per barrel, down 1.5 percent for the week. However, a strong dollar on Friday, which makes oil more expensive for holders of other currencies, wiped out those gains. Over the week, oil has been pressured by the physical market showing signs of weakness amid poor refining margins and lackluster buying in some areas.