In today’s top stories, shares in Dutch medical device maker Philips jumped more than 13% on Monday after its Q1 earnings. Elsewhere, chip designer Arm is making its own advanced semiconductor, in a bid to drum up interest before its IPO. Taiwanese Apple supplier Quanta Computer is to invest $120m in a factory in northern Vietnam. Since its 4 January high of $67.10, the JD share price has plummeted 46.9%. Lastly, workers in Changshu, China, are to be paid entirely in digital currency, part of a nationwide effort to promote the use of the central bank digital currency, known as e-CNY.
Philips shares see healthy rise amid litigation costs
Shares in Dutch medical device maker Philips [PHIA.AS] jumped more than 13% on Monday after its first quarter (Q1) earnings outweighed news that it has set aside €575m for litigation costs associated with the recall of its breathing device, the DreamStation. Earlier this month, the US Food and Drug Administration warned that the devices “may cause serious injuries or death” and “may deliver inaccurate or insufficient therapy”.
Chipmaker Arm to make its own chip
British chip designer Arm is making its own advanced semiconductor in a bid to drum up interest in its capabilities ahead of a much-anticipated IPO, reported the Financial Times. The company, which has snubbed UK PM Rishi Sunak’s plea to list in London, is due to list on the Nasdaq later this year. A former Arm executive told the paper that the venture is likely to be “capital intensive”, and that it’ll “definitely need returns to justify that massive investment”.
Apple supplier invests in Vietnam
MacBook contract manufacturer, Taiwan’s Quanta Computer [2382.TW], is to invest $120m in a factory in northern Vietnam. The move is another indicator of companies trying to reduce their supply chains’ reliance on the Greater China region, which includes Taiwan and Hong Kong. Apple [AAPL] has diversified by moving some of its iPhone production to India; last week it also opened its first stores in the country, to much fanfare.
JD.com shares sink as consumer demand wanes
Analysts were anticipating that Chinese ecommerce giant JD.com [JD] would ride the coattails of post-zero-Covid recovery, but things haven’t gone smoothly. In March, it reported slowing revenue growth as consumer sentiment waned. Since its 4 January high of $67.10, the JD share price has plummeted 46.9%. “Investors dislike uncertainty and here we have uncertainty from a number of angles,” as abrdn’s [ABDN.L] Adam Montanaro told Bloomberg on Monday.
China’s digital currency efforts
Public sectors in Changshu, China, are to be paid entirely in digital currency, local media has reported. It’s part of a nationwide effort by Beijing to promote the use of its own central bank digital currency, known as e-CNY. Using e-CNY to pay salaries should help to “popularise” it, Wang Pengbo, senior financial analyst at consultancy BoTong Analysys, told Reuters. Shares in Chinese digital currency stock Global Infotech [300465.SZ] jumped 13% on Monday.