Author: fortraders

By Soo-hyang Choi

South Korea has asked the United States to review its criteria for new semiconductor subsidies, concerned over the impact of rules to limit chip investment in countries such as China. The U.S. Commerce Department proposed rules to prevent China and other countries it deems to be of concern from tapping funds of $52 billion earmarked for semiconductor manufacturing and research under the CHIPS Act.

South Korea asked the U.S. to review the rule that prevents recipients of U.S. funding from building new facilities in such countries, beyond 5% of existing capacity. Samsung Electronics Co Ltd and SK Hynix Inc, the world’s top two makers of memory chips, have invested billions of dollars in chip factories in China.

The United States has said the incentives aim to help restore America’s leadership in semiconductor manufacturing, boost employment and ensure economic and national security. The United Auto Workers (UAW) union has said funding applicants should be ruled ineligible if they did not agree to allow union organising.

The Commerce Department began accepting subsidy applications for leading-edge chip facilities in March. On June 26, it will open applications for “current-generation, mature-node and back-end” production facilities. South Korea’s industry ministry declined to comment on the matter.

June 1: $25.3 billion in T-billsrnJune 3: $25.3 billion in T-billsrnJune 8: $25.3 billion in T-billsrnJune 10: $25.3 billion in T-billsrnJune 15: $25.3 billion in T-billsrnJune 17: $25.3 billion in T-billsrnJune 22: $25.3 billion in T-billsrnJune 24: $25.3 billion in T-billsrnJune 29: $25.3 billion in T-billsrnJune 30: $25.3 billion in T-bills

With the June 1 deadline looming, investors are closely watching the U.S. Treasury’s ability to raise the debt ceiling and avoid a default on its debt payments. The Treasury must pay over $1.3 trillion in T-bills and bond payments, including principal and interest, in June. If the government fails to raise the current $31.4 trillion borrowing cap before it exhausts its cash and borrowing capacity, it could miss payments on some of its debt. T-bills and Treasuries with maturities in the middle of June and December are most at risk of being the first to default if the debt ceiling is not raised.

Most Asian stock markets retreated on Wednesday, tracking losses in U.S. stocks as a deal to raise the debt ceiling remained out of reach. Fears of worsening Sino-U.S. tensions also dampened sentiment towards the region, with Chinese stocks lagging most of their peers. Losses in Hong Kong-listed Chinese stocks pulled the Hang Seng down 1.1%. South Korea’s KOSPI lost 0.2%, while Australia’s ASX 200 index fell 0.5%. Japan’s Nikkei 225 slid 1.1%, while the broader TOPIX lost 0.5%. Thailand’s SET Index rose 0.2%. Wall Street indexes slid in overnight trade, providing a weak lead-in to regional stocks. A swathe of weaker-than-expected manufacturing readings from across the globe also rattled sentiment towards risk-driven assets. Markets are now awaiting more cues on monetary policy from the minutes of the Federal Reserve’s May meeting, due later in the day.

Macau, the world’s biggest gambling hub, is facing pressure to diversify its economy and strengthen national security. Xia Baolong, the director of China’s Hong Kong and Macau Affairs Office, has laid out six requirements for Macau to follow, including implementing the “one country, two systems” principle, strengthening national pride, and improving overall governance.

Casino operators such as Sands China, Wynn Macau, Galaxy Entertainment, SJM Holdings, Melco Resorts and MGM China have been mandated to invest more in non-gaming amenities to diversify away from gambling. They have committed to investing a combined $15 billion in the coming decade, 90% of which must be spent on non-gaming.

Macau is also expected to “fully, accurately and unswervingly implement the new concepts, new ideas and new strategies put forward by President Xi Jinping.” This is part of the Chinese government’s efforts to ensure Macau’s economic and social stability.

Sony Group Corp is leveraging the success of its hit drama “The Last Of Us” from television network HBO to boost sales of the game series upon which it is based. Sony Interactive Entertainment CEO Jim Ryan reported that sales of the game increased dramatically with each episode of the show.

The company is also bringing the franchise to PC as part of a push to diversify beyond consoles. Sony expects PC revenue to hit $450 million in the current financial year compared to $80 million two years earlier. PlayStation 5 sales are likely to catch up and then exceed PlayStation 4 during the current financial year.

Sony is investing more than half of its PlayStation budget this year in live-service games, which offer continuous updated play. The company is also exploring cloud technology and artificial intelligence to accelerate its initiatives in the gaming industry.

After two years of negotiations, the New York Times Guild has reached a tentative agreement with the New York Times. The deal, if ratified, will raise the median salary of a NewsGuild member to $136,220 and to $160,011 for reporters and correspondents in the union.

The agreement includes an overall 18.4% increase in salary, new job categories for reporters and editors, and doubling of fertility benefits to $50,000. The New York Times will also allocate more than $100 million in new spending for NewsGuild members.

The union, which is part of the NewsGuild of New York, represents journalists, as well as ad sales workers, comment moderators, security guards and staffers at The Times Center. In December, more than 1,100 union employees at the newspaper had participated in a 24-hour walkout after failing to reach a contract with the company.

The new agreement is a major victory for the New York Times Guild and its members, who have been fighting for better wages and benefits for years.

Online fashion giant Shein is exploring plans to build a factory in Mexico, as part of its push to localize production and cut distribution costs for customers in Latin America. The factory, which will produce Shein items, follows its announcement that it will build a manufacturing network in Brazil.

Shein was founded in China and manufactures most of its products there, but is now seeking to diversify. The company has taken market share from other affordable fashion retailers and is now headquartered in Singapore.

A final location for the Mexico site has not been decided yet, but Shein will use funds from its recent capital raise of $2 billion to fund the expansion. The retailer still posts annual revenue growth of 40%, one of the sources added.

Shein recently offered an online marketplace platform in Brazil, allowing third-party merchants to sell their own goods on the Shein app and website. The upcoming Mexico factory will not house items from third-party vendors.

Shein has come under fire in markets including India, Brazil and the U.S. for its supply-chain links to China. The company has previously said it has “zero tolerance” for forced labor and requires suppliers to follow the International Labour Organization’s core conventions.

Shein is continuing to explore nearshoring options as it expands to new markets, and is considering bringing its “marketplace model to other markets across Latin America.”