Business and Finance

CAL: strike causes NT$280 million in losses

Focus Taiwan
Date: 2016/06/25
By: Wang Shu-fen and S.C. Chang

Taipei, June 25 (CNA) China Airlines (CAL), Taiwan’s largest carrier, said Saturday 201606250025t0001business losses from 122 canceled flights caused by a flight attendants’ strike amounted to NT$280 million (US$8.63 million).

The flight attendants staged an unprecedented strike Friday, causing chaos in the airlines’ schedules.

CAL was forced to cancel 67 flights Saturday and 55 more Sunday, even though an agreement between management and the striking workers was reached by late Friday.

In addition, local travel agents said they will demand NT$50 million from CAL as compensation for their losses caused by the strike — an amount that could top NT$100 million after more detailed calculations have been carried out.

The CAL said operation will return to normal Sunday.      [SOURCE]

Taiwanese firms face patent claims

Taipei Times
Date: Jun 26, 2016
By: Staff writer, with CNA

Taiwanese exporters are facing rising threats from patent infringement accusations in the US, which could have an adverse impact on exports to the US market, the Ministry of Economic Affairs said.

Since last month, firms operating in the US market have filed three complaints with the US International Trade Commission, accusing Taiwanese exporters of infringing on their patents and demanding that the commission stop the sale of the products in the US market.

The latest complaint revealed by the commission on Monday last week showed that a consortium led by California-based Tessera Technologies Inc accused Taiwan-based PC vendor Asustek Computer Inc (華碩) and Taiwanese smartphone brand HTC Corp (宏達電) of stealing technology related to certain semiconductor devices and semiconductor device packages.     [FULL  STORY]

Chunghwa Telecom seen as best Asia Pacific LTE provider

The China Post
Date: June 24, 2016
By: The China Post news staff

TAIPEI, Taiwan — Chunghwa Telecom (中華電信) was presented with the “Taiwan Mobile Service Provider of the Year” award by consulting firm Frost & Sullivan recently in Singapore.

As the largest telecom provider in Taiwan, Chunghwa spearheaded the 4G LTE service in 2014. The move was soon followed by other telecom providers in Taiwan, resulting in the fastest adoption of 4G service by local residents in the Asia-Pacific region, Frost & Sullivan said.

Chunghwa encouraged its 2G or 3G service users to switch to the new LTE service, and won 4.4 million customers, or a 38-percent market share, by the end of 2015.

“Chunghwa Telecom will continue its technological innovation, fulfill its pledge to quality service and provide ubiquitous 4G service to enable a quality digital lifestyle for the nation’s citizens,” Chunghwa’s public relations vice president Ho Hsu-hui (何旭輝) said.

Asia-Pacific saw the quickest 4G LTE adoption over the past year compared with the rest of the world, Frost & Sullivan said.     [SOURCE]

Chan sisters reach final in Eastbourne

STRENGTH FROM WITHIN:Monica Puig, who defeated Kristina Mladenovic to reach the semi-finals, said her sports psychology team helped her to prepare mentally

Taipei Times
Date: Jun 25, 2016
By: Dave Carroll / Staff reporter, with AFP, EASTBOURNE, England

The Chan sisters survived a topsy-turvy doubles semi-final at the Aegon International in Eastbourne, England, yesterday, while Dominika Cibulkova fought back from a set down to oust top seed Agnieszka Radwanska in the rain-interrupted quarter-finals of the singles.

Taiwanese second seeds Chan Hao-ching and Chan Yung-jan won the first set 6-1 in just 23 minutes against fourth seeds Timea Babos of Hungary and Yaroslava Shvedova of Kazakhstan on the grass courts at Devonshire Park, but then collapsed to a 1-6 second-set loss.

However, the Taiwanese sisters rallied in the super tiebreak to complete a 6-1, 1-6, 10-6 victory in 58 minutes to advance to today’s final and a shot at regaining the title they won in 2014.     [FULL  STORY]

Taiwan shares plunge on U.K. vote to leave EU

Taiwan News
Date: 2016-06-24
By: By Frances Huang, Central News Agency

Shares in Taiwan took a beating Friday as investors scrambled to dump their holdings in the wake of the results of a referendum held by the United Kingdom a day earlier which pointed to a departure of the country from the European Union, dealers said.

Selling on the local main board was seen across the board with large cap stocks, such as contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電), and integrated circuit designer MediaTek Inc. (聯發科), under heavy downward pressure to push the index below 8,500 points at the close, they said.

The weighted index on the Taiwan Stock Exchange (TWSE) closed down 199.69 points, or 2.30 percent, at 8,476.99, after moving between 8,374.26 and 8,691.30, on turnover of NT$121.65 billion (US$3.75 billion).     [FULL  STORY]

CAL reaches consensus with striking flight attendants

Focus Taiwan
Date: 2016/06/24
By: Yu Hsiao-han and Y.F. Low

Taipei, June 24 (CNA) China Airlines (CAL) on Friday reached a preliminary consensus 201606240028t0001with its striking flight attendants on their demands, bringing hope that the union action may soon come to an end.

The consensus included allowing the flight attendants to continue to report for duty at Songshan Airport and raising the subsidy for those on duty overseas to US$4 per hour from July 1 and to US$5 from May 1, 2017.

The subsidy hikes will apply to union members only, however.

The consensus was achieved after four hours of negotiations between CAL management and the Taoyuan Flight Attendants Union, which represents the CAL flight attendants.     [FULL  STORY]

BREXIT: Acer, Asus to watch European markets

Taipei Times
Date: Jun 25, 2016
By: Lauly Li / Staff reporter

Taiwanese PC makers Acer Inc (宏碁) and Asustek Computer Inc (華碩) yesterday said that they would closely monitor currency fluctuations and microeconomic changes in European markets following Britain’s decision to leave the EU.

“The immediate impact [of the referendum] on enterprises would be volatility in the foreign-exchange market, which Acer will monitor closely to respond in a cautious manner,” Acer chief executive officer Jason Chen (陳俊聖) told reporters after the company’s annual general meeting in New Taipei City’s Sijhih District (汐止).

The pound’s decline against the US dollar and the sharp depreciation of the euro against the greenback are expected to affect consumer confidence and suppress the spending capability of European consumers, Chen said.     [FULL  STORY]

Yuanta-Polaris cuts GDP growth forecast to 0.9%

The China Post
Date: June 24, 2016
By: Enru Lin

TAIPEI, Taiwan — Yuanta-Polaris Research Institute (元大寶華綜經院) on Thursday lowered

Yuanta-Polaris Research Institute Chairman Liang Kuo-yuan (梁國源) speaks to media in Taipei, Thursday, June 23.(Enru Lin, The China Post

Yuanta-Polaris Research Institute Chairman Liang Kuo-yuan (梁國源) speaks to media in Taipei, Thursday, June 23.(Enru Lin, The China Post

its annual economic growth forecast for Taiwan from 1.42 percent to 0.9 percent amid disappointing global demand.

The think tank cited reasons including a downtrend in tourism revenue and worse-than-expected export figures from January to May.

Yuanta-Polaris Research Institute Chairman Liang Kuo-yuan (梁國源) said demand for exports had failed to pick up this year as the world economy stayed ensnared in weak growth.

Liang said that major economies were not working together to lift themselves and to stabilize the global financial system.     [FULL  STORY]

Foreign brokerage keeps ‘hold’ recommendation on Hon Hai

Taiwan News
Date: 2016-06-23
By: Central News Agency

Taipei, June 23 (CNA) A European brokerage on Thursday maintained its “hold” recommendation on shares of Taiwan-based Hon Hai Precision Industry Co., saying that the company may book heavy losses due to its acquisition of Sharp Corp. of Japan.

In a research note, the brokerage said it was cautious about the movement of Hon Hai shares also because growth of the company’s smartphone and PC operations was likely to slow down.

Therefore, the brokerage said, it was keeping its “hold” recommendation on Hon Hai shares and its target price of NT$74 (US$2.30).

Under Taiwan’s regulations, the names of foreign brokerages cannot be reported when they give price forecasts for specific stocks.     [FULL  STORY]

CAL pledges to protect passengers’ rights ahead of strike

Focus Taiwan
Date: 2016/06/23
By: Wei Shu, Wang Shu-fen and Bien Chen-feng and Y.F. Low

Taipei, June 23 (CNA) China Airlines (CAL) said Thursday it will adjust its flights and 201606230032t0001rearrange the work schedules of its employees to minimize the impact of an upcoming labor strike on its operations.

CAL said it will give priority to the rights of passengers and will not give up on efforts to communicate with the striking flight attendants, in the hope of resolving the labor dispute.

The airline promised to help affected passengers change the times, dates or destinations of the flights. If passengers demand a refund, they will not be charged a processing fee, it added.

The company also urged the flight attendants to calm down, consider the rights of passengers and avoid causing inconvenience to the public.     [FULL  STORY]