Afternoon Coffee: Tech Companies Eye Taiwan Amid U.S.-China Tensions, IEA Warns of Oil Supply Gap

VTT Studio/Adobe-Stoc

Taiwan may benefit from flaring tensions between the U.S. and China, Nikkei Asian Review reports. U.S. technology companies are starting to consider the country as an alternative hub for production and research. Companies including Microsoft and Amazon are particularly interested in new developments for the internet of things (IoT), an area in which Taiwan specializes. Technology manufacturers may also increasingly look to Taiwan for component sourcing.

Oil Supply

The International Energy Agency said Wednesday that sanctions and economic upheaval could create a 30% oil supply gap, according to Bloomberg. Decreased output from OPEC members Iran and Venezuela would cause much of the supply drop. Increased production from non-OPEC member such as U.S. shale producers, however, will likely be able to meet demand.

Rates Decision 

Central bank watchers are in near-unanimous agreement that the U.S. Federal Reserve will raise interest rates during its two-day meeting this week, Reuters reports. The more consequential decision will be the Fed’s statements on how it plans to end its rate-hike cycle. New economic data will inform whether the Fed could raise rates more quickly or whether a cautious approach would remain prudent.

Consumer Prices

And finally, a sample of that economic data: Consumer prices rose a seasonally adjusted 0.2% in May and 2.8% from a year in earlier, the largest annual increase in more than six years, the Wall Street Journal reports. The data confirm firming price pressures in the economy, with inflation consistently increasing but not surging.

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