Monday, December 14, 2015

Apple said to open secret lab in Taiwan to develop displays

Apple said to open secret lab in Taiwan to develop displays

[TAIPEI] Apple Inc opened a production laboratory in northern Taiwan where engineers are developing new display technologies, according to people with knowledge of the facility.
The Apple building in Longtan has at least 50 engineers and other workers creating new screens for devices including iPhones and iPads, the people said, asking not to be identified because the details aren't public. Apple has recruited from local display maker AU Optronics Corp and Qualcomm Inc, which used to own the building, the people said.
Kristin Huguet, a spokeswoman for Apple in Cupertino, California, declined to comment.
Apple began operating the lab this year as it aims to make products thinner, lighter, brighter and more energy-efficient. Engineers are developing more advanced versions of the liquid-crystal displays currently used in iPhones, iPads and Mac personal computers, the people said. Apple also is keen to move to organic light-emitting diodes, which are even thinner and don't require a backlight, they said.
Samsung, Sharp Making its iPhones and iPads slimmer and longer-lasting with each generation has been a hallmark of Apple, helping drive US$178 billion in annual sales from the two product categories.
By working directly on the development of display technologies, Apple can reduce reliance on suppliers such as Samsung Electronics Co, Sharp Corp and Japan Display Inc.
Apple does the bulk of its research at its headquarters in Cupertino and outsources the manufacturing of almost all devices and components to suppliers such as Foxconn Technology Group and Japan Display. The iPhone maker also employs scientists and engineers globally to develop materials and manufacturing technologies.
Apple continues looking for engineers to work at its display panel facilities, according to job postings on LinkedIn Corp's website.
Tucked in a corner of Longtan Science Park, between a forest and the building site for a new biotechnology factory, the structure shows no outward indications of belonging to the world's most valuable company.
Fifty kilometres from downtown Taipei and within an hour's drive of the Foxconn headquarters, the white-tiled factory displays no corporate signage, a stark contrast to neighboring plants emblazoned with 3-foot-tall logos for Leotek Electronics Corp, Taiwan Semiconductor Manufacturing Co and AU Optronics.
QUALCOMM DISPLAYS
A short driveway, a half-dozen steps and sliding glass doors lead to a counter and a receptionist in front of an Apple logo on the wall. That sign, and an iMac displaying Apple's standard visitor registration screen, are the only visible indicators Apple resides here.
The receptionist wouldn't provide the name or contact details for someone who could talk about the facility. Guards at an outside security post also declined to give contact details for anyone responsible.
Records from the Hsinchu Science Park management office, which manages the Longtan facility, show Apple moved into the factory in April and that Qualcomm Panel Manufacturing Ltd had occupied the site from 2008.
Records from the economics ministry show Apple last amended its Taiwan registration in October. The form now shows the Longtan address, changed from an earlier listing in downtown Taipei, as the headquarters of Taiwan Apple LLC. The site was where Qualcomm tried to develop its own displays called Mirasol.
Samsung, which makes both components and consumer devices, is among the few suppliers currently offering smartphones with OLED displays, which typically are more expensive to produce than LCDs.
On Monday, a small group of workers with Apple ID badges around their necks stepped off the property for a smoking break amid the hum of industrial filters. They declined to comment on the building's purpose and what they're working on.
BLOOMBERG

Hong Kong regulator orders trading halt in Muddy Waters' target Superb Summit

Hong Kong regulator orders trading halt in Muddy Waters' target Superb Summit

[HONG KONG] Hong Kong's securities regulator put an indefinite trading halt on the shares of Chinese timber supplier Superb Summit International Group, a company that shortseller Muddy Waters questioned the accounts of in a report issued last year.
The Hong Kong stock exchange said in a statement on Tuesday that the Securities and Futures Commission (SFC) had invoked a rarely used provision which says the regulator can halt trading in a stock if it believes a company has given false, incomplete or misleading information, has failed to comply with SFC rules, or if the SFC deems it is in the public interest to do so.
No specific reason was given for the SFC order. Shares of Superb Summit - which has a last-traded market value of HK$12 billion (S$2.25 billion) - have been suspended since November 2014 at the request of the company following the Muddy Waters report.
Company executives were not immediately available to comment on the latest halt. When a Reuters reporter visited the Hong Kong office of Superb Summit on Tuesday, he was told by an employee that the company could not accept any interviews.
The regulator declined to comment as well. Several companies that have had trading in their shares suspended have been under investigation by the SFC.
The provision invoked by the SFC was also used to extend a trading halt in shares of Chinese solar technology company Hanergy Thin Film Power Group Ltd in July this year.
Last year, Muddy Waters questioned Superb Summit's balance sheet and the value of the assets its owns. The company has since described the allegations as "misleading".
The report by Muddy Waters, whose negative reports have decimated shares of Chinese companies listed overseas, came after a string of corporate scandals that underscored the perils of doing business in China.
Muddy Waters founder Carson Block told Reuters at the time that his company had conducted checks and was convinced that loss-making Superb Summit had little or no forest ownership.
Chinese forestry company Sino-Forest, targeted by Block in 2011, was the most prominent among a series of accounting scandals that have tainted the image of Chinese companies. The scandals have prompted trading halts, de-listings, lawsuits and regulatory probes in financial centres around the world.
REUTER
S

EU diplomats warn US over visa threat

EU diplomats warn US over visa threat

[WASHINGTON] Diplomats from the 28-member European Union on Monday warned they could respond in kind if the United States makes good on plans to end visa-free entry for some EU nationals.
After the November 13 terror strikes in Paris and as part of wider anti-terror efforts, the US House of Representatives voted last Tuesday in support of the Visa Waiver Program Improvement Act of 2015, a measure the White House supports.
The Paris strikes were conducted by extremists who could have traveled to the United States without a visa. The bill, which still requires Senate and White House nods, would bar people who traveled after March 1, 2011 to Iraq and Syria - as well as Iran and Sudan - from participating in the visa-free program.
"Compulsory biometric checks at the port of origin would represent the de facto introduction of a visa regime in all but name," EU Ambassador to the United States David O'Sullivan said in an editorial in The Hill, on behalf of ambassadors to the US of EU member states.
"Such indiscriminate action against the more than 13 million European citizens who travel to the US each year would be counterproductive, could trigger legally mandated reciprocal measures, and would do nothing to increase security while instead hurting economies on both sides of the Atlantic." The US acknowledged potential for strains over any changes.
"We have been in touch with and will continue to be in touch with European leaders about their concerns about the program," State Department spokesman John Kirby said. "It's an important program, we recognize that." VWP is available to citizens of 38 countries, largely US allies and relatively stable developed democracies.
Many are in Europe, including Belgium and France, the home countries of several of the Paris attackers.
Created in 1986 to help facilitate travel to the US, the program allows applicants to fill out a detailed form online and pay a small fee, rather than apply at US consulates.
AFP

Australia's budget blows out as growth slows, ore prices slump

Australia's budget blows out as growth slows, ore prices slump

[SYDNEY] Australian Treasurer Scott Morrison is grappling with a budget blow out less than a year out from an election as the economy adjusts to plunging commodity prices and recession-level wage growth.
The underlying cash deficit will be A$37.4 billion in the fiscal year through June, wider than a May estimate of A$35.1 billion, the government said in its mid-year economic and fiscal outlook Tuesday. In the four years through June 2019 the forecast deficit will be A$26.1 billion larger than previously anticipated.
The deteriorating budget is due to "revenue writedowns of almost A$34 billion caused by falling commodity prices, a declining terms of trade, weaker global growth and the adoption of a more realistic domestic growth outlook," Morrison said a statement. Gross domestic product is now forecast to expand by 2.5 per cent in 2015-16 from a May estimate of 2.75 per cent.
Prime Minister Malcolm Turnbull's government is yet to gain much benefit from employment growth that's helping the economy weather a slide in mining investment. Slumping commodity prices and the weakest run of wages growth since the last recession in the early 1990s have hurt government revenue, while new outlays to support innovation and an intake of Syrian refugees have boosted spending.
"The budget will remain stuck in deficit across the forecast horizon with the deficits to be larger than anticipated," Andrew Hanlan, a senior economist at Westpac Banking Corp. in Sydney, said ahead of the release. "Commodity prices have surprised to the downside, notably for iron ore." The government said its budget repair strategy still aims to deliver budget surpluses, which would build to at least 1 per cent of gross domestic product "as soon as possible." The government lowered its assumed iron ore price to US$39 a ton, in line with current market prices and down from an estimate of US$48 in May. The benchmark iron ore price has slumped 45 per cent this year on faltering demand in China, the largest consumer, and as the biggest exporters continue to raise supply to lower production costs and defend market share.
Ore with 62 per cent content delivered to Qingdao dropped 4.3 per cent last week to US$38.30 a dry ton on Friday, a record low in daily prices compiled by Metal Bulletin Ltd. going back to May 2009. The price was at US$39.06 on Monday.
Iron ore will extend its decline into the US$20 a metric ton range by 2017 or even sooner as a global surplus swells, Axiom Capital Management Inc. said this month. The export market will be oversupplied until at least 2020, according to Bloomberg Intelligence. The steel making ingredient traded as low as US$10.51 a ton in 1988 when annual contracts were negotiated between the largest miners and steel producers, data from the International Monetary Fund shows.
Australia's government has also struggled to pass a number of budget savings measures through the Senate, where it lacks a majority, making its goal of returning the budget to surplus even more difficult. The median of 18 estimates in a Bloomberg survey was for a budget deficit in 2015-16 of A$38 billion and a reduction in forecast growth to 2.5 per cent for the same period from 2.75 per cent.
Policy decisions since the budget have been offset by savings measures, adding almost A$400 million to the bottom line, Morrison said.
"Our plan is straightforward - responsibly restrain expenditure while supporting economic growth to lift revenues," Morrison said.
BLOOMBERG

US rate hike expected as Fed meeting looms

US rate hike expected as Fed meeting looms

[WASHINGTON] The US Federal Reserve is widely expected to finally push interest rates up after seven years at the zero level when it opens a two-day policy meeting on Tuesday.
The break, well-flagged by Fed officials including chair Janet Yellen, would signify leaving behind the extraordinary crisis stance in monetary policy that aimed to restore the US economy's strength after the financial crisis and deep recession of 2008-2009.
While an increase in the federal funds rate - which has not been moved higher in almost a decade - is not certain, Ms Yellen strongly pointed to it at the beginning of December.
Since then, economic data, including job creation and consumer spending, have been strong enough to keep her from changing her view.
The Fed's policy body, the Federal Open Market Committee, will weigh over Tuesday and Wednesday whether the US economy is sufficiently strong to weather increasing the fed funds rate from 0-0.25 per cent to an expected 0.25-0.50 per cent.
The benchmark rate is a short-term peg for interbank lending which influences rates throughout the financial system.
Most importantly, expectations about its future level determine long-term interest rates on car and home loans, financing for businesses and foreign governments, and savers' deposits.
The prospect of the launch of a campaign to raise the rate and tighten US monetary policy after years of cheap dollars has already stirred turmoil in the global financial system, hurting especially emerging-market economies with significant dollar exposure and weakening currencies.
It will come as leading central banks elsewhere, including China, Japan and the eurozone, are easing monetary policy to boost growth.
But even with a 0.25 percentage point increase, US rates would still be extraordinarily low, far below what the Fed considers a "normal" monetary stance.
Ms Yellen has stressed that the Fed still wants to see more tightening in the labor market and to push inflation up, and that means continued low rates to support stronger growth.
"The Fed is not trying to slow down a fast-growing economy or dampen runaway inflation," Sam Stovall, equity strategist at S&P Capital IQ. A hike would be "an attempt to recalibrate, not restrain." Extremely weak inflation, though, is a key reason why many in the FOMC have resisted, arguing that there is time to wait before liftoff.
However, Ms Yellen argued in a December 2 speech that if the Fed waits too long,"we would likely end up having to tighten policy relatively abruptly to keep the economy from significantly overshooting both of our goals." With the first rate hike already presumed, the greater question is, what happens next?
Ms Yellen has repeatedly said that the liftoff from zero will initiate a series of increases whose pace will depend on how the economy reacts - slower if there is weakness, and faster if it picks up strength.
For that reason, most eyes will be on what the Fed and Ms Yellen say in statements and in forecasts about their expectations for economic growth and the expected level of the fed funds rate at the end of 2016 and 2017.
"There is a large gap between financial markets' expectation of the path of rates and the FOMC's expectation," said Deutsche Bank in a client note.
Deutsche Bank noted that markets on average are expecting just two increases next year while in the FOMC's September projections four increases to end at about 1.5 per cent were indicated.
If the Fed reiterates that stance, it could strengthen the dollar but also weigh down equity markets.
The impact of sinking oil prices aside, however, markets were relatively subdued Monday going into the meeting.
"Overall, markets are on edge," said David Levy of Kenjol Capital Management. "There is not a lot a reason to get ahead of the Fed and step and be a buyer today.
AFP

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