Chip maker profits warn that Huawei ban shakes tech sector – business live | The business



[ad_1]

Good morning, and welcome to our continued coverage of the world economy, the financial markets, the eurozone and business.

America's decision to include Huawei's blacklist five weeks ago is having a clear detrimental effect on the global technology industry.

So warns IQE chipmaker based in Cardiff on a profit alert this morning. IQE reduced its sales forecast for this year, blaming the White House firmly for putting Huawei on its list of entities – barring US companies from trading with the Chinese mobile giant.

In a trading update for the city, IQE warned that it is operating in an "increasingly cautious market" with several customers recently cutting their forecast requests.

The IQE may not be a household name, but its advanced silicone materials and semiconductor compounds are used around the world.

Its wafers are used in more than two billion wireless chips and more than one billion optoelectronic chips every year – from smartphones and mobile satellite, car and aircraft base stations, as well as solar panels.

Earlier, the company had expected to earn 175 million pounds this year – now expects only to release 140 million pounds to 160 million pounds.

Chief Executive Dr. Drew Nelson, chief executive of IQE, says that America's crackdown on Huawei is having serious consequences:


"These are unprecedented times for the global semiconductor industry as geopolitical conditions affect interconnected global supply chains. It is now clear that the impact of Huawei's inclusion in the Entity List of the US Office of Industry and Security is having far-reaching and long-lasting impacts on global supply chains.

This is an issue beyond IQE's control, but we respond quickly to leverage our relationships and seek new sales opportunities.

The following reaction ….

Also coming today

Oil is hovering near the three-week highs after Iran shot down an unmanned US plane yesterday – triggering reports that President Trump gave initial approval to the military to launch retaliatory attacks.

Markit will launch its research on purchasing managers in the euro zone and the US, which will show whether manufacturers are still struggling against the US-China trade war.

In addition, the UK's new public finance numbers will show how much England lent to balance books last month.

Proactive Investors explains:


In April, UK government loans reached £ 5.8 billion, starting the 2019-20 financial year with almost the same level of deficit a year ago.

In the 2018-2019 financial year, indebtedness hit 23.5 billion pounds, slightly worse than the 22.8 billion British pounds that the Budgetary Accountability Office predicted in the March spring statement.

For May, economists expect loans to fall to £ 4.2 billion.

Schedule

  • 9h BST: Eurozone Flash PMI Report for June
  • 9:30 AM BST: UK Public Finance for May
  • 2.45pm BST: Flash US PMI report for June

[ad_2]

Source link