The need to know
The need to know for the week ending 23rd June 2023
The need to know from Reuters’ global network of journalists
Drought-hit Panama Canal further restricts maximum ship depth
The Panama Canal will expand restrictions on the largest ships crossing the waterway, one of the world's busiest trade passages, the canal authority's administrator said on Wednesday, citing shallower waters due to drought.
Central US drought intensifies, threatening grains and soy
The worst U.S. Midwest drought since 2012 expanded over the past week despite mild temperatures as a lack of rain across the heart of the American farm belt threatened newly seeded corn and soybean crops, climatologists said in a weekly report.
Low water hampers Rhine river shipping in Germany
Low water levels after dry weather are preventing cargo vessels from sailing fully loaded on the Rhine river in Germany and meaning surcharges are added to the usual freight rates, commodity traders said on Monday.
Supply chain hangover still feeding inflation, San Francisco Fed paper says
Pandemic-related snarls in global supply chains have mostly receded, but their after-effects still account for a big chunk of excess U.S. inflation, an analysis published Tuesday by the San Francisco Federal Reserve Bank showed.
German May producer prices rise at slowest pace in over two years
German producer prices rose at their slowest pace in more than two years in May, according to data released on Tuesday, in a further sign inflation in Europe's largest economy is easing.
UK food production costs fall for first time since 2016: Lloyds
British food manufacturers reported the first drop in their production costs since 2016 in May as lower commodity and energy prices and cheaper shipping outweighed a jump in wage bills, a Lloyds Bank report showed on Tuesday.
Carrefour says cutting prices on 500 products in France
Food retailer Carrefour (CARR.PA) started cutting prices this week by around 10% on average on some 500 products to help French shoppers cope with high cost of living, a company spokesperson said on Wednesday.
Their parents made China the world's factory. Can the kids save the family business?
When Steven Du took over his parents' factory producing temperature control systems in Shanghai, one of the first changes he made was to turn on the plant's heating in winter - something his frugal forebears were reluctant to do.
Brexit an 'economic disaster' for UK and German trade, German economists say
Brexit has been an "economic disaster" for trade and investment ties between the United Kingdom and Germany, leading to a fall in German direct investment and seeing the UK decline in importance as a trading partner, German economists said.
Comment: To get to net zero, companies have to urgently up their game on transition plans
Last week CDP launched its Corporate Environmental Action Tracker, which coincided with Bonn Climate Conference's dialogues on the Global Stocktake, assessing collective progress towards implementing the 2015 Paris Agreement.
Thailand's WHA eyes record year as firms expand out of China
WHA Group (WHA.BK), Thailand's largest industrial estate developer, expects a second straight year of record land sales from companies seeking to diversify away from China, its CEO said on Wednesday.
Slowing Chinese economy of more concern to EU firms than geopolitics, survey shows
A slowdown in both the Chinese and global economies is the biggest issue affecting European firms in China, beating political tensions with the United States and decoupling, according to the European Chamber of Commerce in China.
Intel spends $33 billion in Germany in landmark expansion
Intel (INTC.O) will spend more than 30 billion euros ($33 billion) to develop two chip-making plants in Magdeburg as part of its expansion push in Europe, a deal Chancellor Olaf Scholz hailed on Monday as Germany's biggest ever foreign investment.
India clears $2.7 billion Micron chip testing plant ahead of Modi's U.S. visit
India's cabinet has approved U.S. chipmaker Micron Technology's (MU.O) $2.7 billion plan for a new semiconductor testing and packaging unit, a senior government source said on Tuesday ahead of Prime Minister Narendra Modi's state visit to the U.S.
Paris air show: 'Progress' in supply chain as jet orders rack up
Jet engine maker Pratt & Whitney flagged "solid progress" in the aerospace supply chain on Wednesday, addressing a key area of concern for planemakers as they continue to rack up orders at the Paris Airshow.
Analysis: Behind aviation recovery, suppliers struggle to keep up
For dealmakers, this week’s Paris Air Show will showcase the boom in demand for commercial planes and military technology.
Analysis: Smaller aerospace suppliers scramble for titanium, workers in shadow of travel boom
Standing at a small booth among a row of other Japanese aerospace suppliers at the Paris Airshow, Yoko Konno is excited at the prospect of new orders for her company, but frowns at long delays to get titanium and the rising cost of chemicals.
Lithium producers warn global supplies may not meet electric vehicle demand
Lithium producers are growing anxious that delays in mine permitting, staffing shortages and inflation may hinder their ability to supply enough of the battery metal to meet the world's aggressive electrification timelines.
Hyundai raises EV investment to $28 billion, to reduce China operations
Hyundai Motor will raise average annual investment in electrification by nearly two-thirds, spending $28 billion in the next decade, and further restructure its struggling China business as part of a strategy to boost electric vehicle (EV) sales.
Stellantis, Foxconn form 50-50 JV on semiconductors for auto industry
Carmaker Stellantis and iPhone assembler Foxconn have created a 50-50 joint venture to design and sell semiconductors for the automotive industry from 2026.
VW audits Xinjiang plant as rights group pressures car makers
Germany's top carmakers were challenged by a Berlin-based rights group on Wednesday over the extent of their due diligence to prevent forced labour in their supply chain, as Volkswagen (VOWG_p.DE) said it would conduct an audit at its plant in Xinjiang.
VW masters dry-coating battery process with potential to slash cell costs
Volkswagen (VOWG_p.DE) and a technology partner have mastered a battery manufacturing process called dry coating which if scaled up could cut the cost of cell production by hundreds of millions of euros a year, its battery chief said on Friday.
China’s next export is an electric-vehicle fight
Chinese automakers will road test Western protectionism.
Factbox: Companies invest in EV battery factories in Europe
Europe is seeking to lure electric vehicle (EV) battery makers to build factories in the region as the bloc - home to carmakers such as Volkswagen and Stellantis - tries to cut its dependency on Asia and win a green subsidy race with the United States.
Analysis: For EV batteries, lithium iron phosphate narrows the gap with nickel, cobalt
As the auto industry scrambles to produce more affordable electric vehicles, whose most expensive components are the batteries, lithium iron phosphate is gaining traction as the EV battery material of choice.
Fortescue expands battery and electric powertrain output in UK with new plant
Australian miner Fortescue Metals (FMG.AX) is expanding its battery and electric powertrain production operations in the UK with a new plant in Oxfordshire, its green power arm Fortescue Future Industries (FFI) said on Monday.
Ford-SK venture to get $9.2 billion US loan for battery plants
The U.S. Energy Department plans to lend up to $9.2 billion to a joint venture of Ford Motor (F.N) and South Korea's SK On to help it build three battery plants in Tennessee and Kentucky, the biggest-ever award from the government program.
JLR taps Everstream Analytics' AI to dodge supply chain problems
JLR said on Monday it has partnered with supply chain mapping and risk analytics firm Everstream Analytics, which will embed artificial intelligence into the British luxury carmaker's system to help avert future global supply issues.
US lawmakers to urge automakers to cut reliance on China
A bipartisan group of U.S. lawmakers will urge the CEOs of Ford Motor (F.N) and General Motors (GM.N) to shrink reliance on China auto parts, particularly electric vehicle batteries, sources told Reuters on Monday.
Mazda eyes EV battery supply partnership with Panasonic Energy
Japanese automaker Mazda Motor (7261.T) and the energy unit of Panasonic Holdings (6752.T) will start talks to set up a battery supply partnership for electric vehicles (EVs), the companies said on Wednesday.
EU electric vehicle sales jump 71% helped by subsidies
Electric vehicle (EV) sales in the European Union jumped 71% in May while new car registrations grew for the tenth consecutive month, rising 18.5%, data released by the region's carmaker association showed on Wednesday.
US can't yet compete with China on EVs, Ford chairman tells CNN
Ford Motor (F.N) Executive Chairman Bill Ford said the United States was not ready yet to compete with China in the production of electric vehicles.
Stellantis, Foxconn form 50-50 JV on semiconductors for auto industry
Carmaker Stellantis (STLAM.MI) and iPhone assembler Foxconn (2317.TW) have created a 50-50 joint venture to design and sell semiconductors for the automotive industry from 2026.
UK startup Helixx leans on Siemens to design EV 'factory in a box'
UK startup Helixx said on Monday it will use Siemens' (SIEGn.DE) open digital platform to help design a highly-automated 'factory in a box' that can be built anywhere to assemble smaller, low-cost electric vehicles (EVs), initially for large Asian cities.
Self-driving firm Kodiak inks deal to equip 800 Loadsmith trucks
Autonomous truck technology firm Kodiak Robotics will equip its self-driving software in 800 trucks for logistics platform Loadsmith, the companies said in a statement on Thursday.
Volkswagen to use silicon carbide chips in some e-cars in 2023, The Pioneer reports
Volkswagen (VOWG_p.DE) plans to use silicon carbide (SiC) chips in electric cars for the first time this year, German media outlet The Pioneer reported on Thursday.
UPS workers authorize strike, seen as leverage for pay talks
United Parcel Service (UPS) (UPS.N) union employees have voted overwhelmingly to authorize a strike should contract talks break down after the current agreement ends at midnight on July 31, the International Brotherhood of Teamsters said on Friday.
JD.com sales during China shopping festival beat expectations, analysts say
Sales on JD.com's (9618.HK) e-commerce site during China's mid-year shopping festival - the first major shopping event since the country's reopening - grew more than expected, according to brokerages' estimates based on data they have received.
Amazon duped millions of consumers into enrolling in Prime, US FTC says
The U.S. Federal Trade Commission on Wednesday accused Amazon.com (AMZN.O) of enrolling millions of consumers into its paid subscription Amazon Prime service without their consent and making it hard for them to cancel, the agency's latest action against the ecommerce giant in recent weeks.
Amazon's iRobot deal faces EU antitrust investigation, sources say
Amazon's (AMZN.O) $1.7 billion acquisition of robot vacuum cleaner maker iRobot (IRBT.O) faces a full-scale EU antitrust investigation, people familiar with the matter said, weeks after the U.S. online retail giant won UK approval for the deal.
Shares of UK online supermarket Ocado soar on talk of Amazon bid interest
Ocado Group (OCDO.L) shares surged by over 40% on Thursday after The Times newspaper reported speculation of possible bid interest in the online supermarket and technology group, recently squeezed by a cost of living crisis in the UK.
FedEx to fold Canada contractor-based Ground unit into Express
FedEx (FDX.N) on Tuesday said it will merge its contractor-based Ground delivery operations in Canada into its company-operated Express unit and convert contractors into employees.
FedEx paring costs, grounding more planes as margin pressure persists
FedEx (FDX.N), which is slashing costs to protect profits as demand wanes, said on Tuesday that ongoing "demand challenges" prompted its plans to ground 29 more aircraft in the fiscal year that started on June 1.
Philip Morris to launch new $30 million production facility in western Ukraine
Philip Morris International Inc (PM.N) will launch a new $30 million production facility in the Lviv region in western Ukraine in the first quarter of next year, the company said on Tuesday.
'A new era': US regulator allows first sales of lab-grown meat
Two companies, Upside Foods and Good Meat, said on Wednesday they have received final U.S. Department of Agriculture approval to sell lab-grown meat, paving the way for the nation's first-ever sales of the product.
AstraZeneca planning China business spin off, Financial Times reports
Drugmaker AstraZeneca (AZN.L) is drafting a plan to spin off its China business, and listing a separate unit in Hong Kong is being viewed as an option, the Financial Times reported on Sunday.
Britain launches preferential trade scheme with developing countries
Britain on Monday begun implementing a preferential trading scheme with 65 poor and developing countries to replace similar arrangements in place when the country was a member of the European Union, according to a statement.
Reliance Industries resumes vessel operations at Indian port
India's Reliance Industries, operator of world's biggest refining complex, has resumed vessel operations at the port of Sikka in Jamnagar, Gujarat, industry sources said, as the coastline recovered from the impact of cyclone Biparjoy.
Electric-truck maker Nikola laying off 270 employees
Nikola (NKLA.O) said on Friday it would lay off a total of 270 employees, as the electric-truck maker looks to cut costs and sharpen its focus on the North American marketplace.
Exclusive: Group backed by India's Vikram Solar to invest $1.5 billion in new US factories
A new venture backed by Indian solar panel maker Vikram Solar Ltd (VIKO.NS) said on Thursday it will invest up to $1.5 billion in the U.S. solar energy supply chain, beginning with a factory in Colorado next year.
UK manufacturers lift 2023 outlook, boosted by aircraft and electronics
Britain's main manufacturing trade body Make UK revised up its outlook for this year on Monday thanks to strong demand for aircraft and electronics, but said it still expects production to fall over the year as a whole.
Morocco's OCP plans $7 billion green ammonia plant to avert supply problems
Morocco's OCP plans to invest $7 billion in an ammonia plant using green hydrogen, produced from renewable fuel, it told Reuters, as one of the world's biggest phosphates and fertiliser companies seeks to increase output and meet low carbon goals.