The need to know
The need to know for the week ending 11th August 2023
The need to know from Reuters’ global network of journalists
Costs from supply chain disruptions drop by over 50% but headwinds remain -survey
Financial losses due to supply chain disruptions dropped more than 50% on average in 2022, compared with a year earlier, but shortages and delivery delays remain challenges, according to a survey of companies being released on Thursday.
Drought-hit Panama Canal lets more unbooked ships pass in bid to ease queue
The drought-hit Panama Canal has temporarily limited the number of new reserved passage slots to help ease a bottleneck of ships that are waiting to transit without reservations, the waterway's authority said on Thursday.
Bulging warehouses mean lean times for longer for US, European companies
Lean times faced by many U.S. and European companies may last longer than expected as they try to sell off their bulging inventories in an economic climate where demand is stalling.
VIEW China's July exports fall 14.5% y/y, imports down 12.4%
China's exports fell 14.5% in July year-on-year, while imports contracted 12.4%, customs data showed on Tuesday, in the worst showing for outbound shipments from the world's second-largest economy since February 2020.
Analysis: No decoupling, but West and China drift apart
China's unexpectedly poor export performance as revealed on Tuesday is still largely down to wider economic headwinds. But underlying trade and investment trends point to an unmistakable long-term drift in commercial ties with the West.
Biden orders ban on certain US tech investments in China
President Joe Biden on Wednesday signed an executive order that will prohibit some new U.S. investment in China in sensitive technologies like computer chips and require government notification in other tech sectors.
Analysis: China's importance to German exporters on the wane
China is losing importance as a market for German exporters, with data showing a steady decline in its share of total exports, a trend set to continue as Berlin and Beijing rethink their economic ties.
Analysis: Yuan loses core support as firms leave China
Since China opened to foreign investment in 1978 under Deng Xiaoping, global firms have ploughed in hundreds of billions of dollars to buy and build factories for market access and cheap labour, bolstering the Chinese currency.
Two measures of global corporate health flash red
Two measures of corporate and economic health were flashing red on Friday as shipping group Maersk reported a fall in global demand for sea containers and advertising giant WPP said clients in the U.S. tech sector were slashing their marketing spend.
American price elasticity stretched to the limit
The United States may be over the hump on inflation, but consumers aren’t acting like it.
Amazon soars on 'game-changing' quarter, iPhone slump drags Apple
Amazon.com (AMZN.O) closed up more than 8% on Friday on signs that its growth engines, e-commerce and cloud-computing, were faring well in an uncertain economy, helping shield the broader market from Apple's (AAPL.O) 4.8% slide after gloomy iPhone sales.
Amazon results could bode well for rival retailers Walmart, Target
Amazon's strong quarterly results are one more sign that Americans are still shopping, despite months of ominous economic indicators, and could be a positive signal for Walmart and Target, who report next week.
Alibaba previews benefits of slimming down
Just months after announcing a six-way breakup, Alibaba's (9988.HK) corporate overhaul is off to a good start.
Germany spends big to win $11 billion TSMC chip plant
Taiwanese chipmaker TSMC on Tuesday committed 3.5 billion euros ($3.8 billion) to a factory in Germany, its first in Europe, taking advantage of huge state support for the $11 billion plant as the continent seeks to bring supply chains closer to home.
US reports big interest in $52 billion semiconductor chips funding
The U.S. Commerce Department said on Wednesday that more than 460 companies have expressed interested in winning government semiconductor subsidy funding in a bid to boost the country's competitiveness with China's science and technology efforts.
Aptiv expects semiconductor prices to remain high
Aptiv PLC (APTV.N) does not expect semiconductor prices to cool off in the near future, the auto parts supplier said on Wednesday.
Chip shortage in Germany's car industry will last years - Audi manager
Semiconductor shortages that have created bottlenecks for Germany's car industry will take years to resolve despite chipmakers' plans to build factories in the country, a senior Audi manager was quoted as saying on Friday.
UPS cuts 2023 forecasts, fights to regain business lost during US labor talks
United Parcel Service (UPS.N) cut its full-year revenue and profitability targets on Tuesday as the world's largest package deliverer faces higher labor costs and fights to win back U.S. business lost during tumultuous contract talks with the Teamsters.
Brazil beef lobby says deforestation risks for supply chain remain
Brazil is raising more cattle on smaller areas, helping to make beef production more sustainable in the world's largest exporter of the commodity, but supply chain risks remain as criminals continue to clear the Amazon rainforest to graze livestock, beef lobby Abiec said.
Consumers keen, but big brands failing to buy in to refillable packaging
One of the problems with plastics is that they are incredibly durable, yet they are often only being used once, meaning that the plastics mountain just grows and grows.
Ford exec expects software to boost revenue for commercial trucks, vans
Ford Motor (F.N) expects to incorporate more and better software into the trucks and vans in its highly profitable Ford Pro commercial vehicle business and grow revenues by $4,000-$5,000 per vehicle in the future, a top executive said on Thursday.
Western Canada dock workers vote to accept contract offer
Dock workers in western Canada voted to accept an improved labor contract after a month-long dispute that affected trade and disrupted operations at the country's busiest ports, their union said on Friday.
Japan signs deal with Namibia to explore for rare earth minerals
Japan on Tuesday signed an agreement with Namibia to jointly explore for rare earth minerals as part of its broader plan to develop supply chains for cobalt and other minerals used in making electric vehicle batteries.
Resale is all the rage, but fashion brands not making a dent in unsustainable levels of waste
Look at just about any major brand and you’ll find a commitment to move away from the make-take-waste linear economy that has defined fashion for the past 100 years and embrace a circular economy in which fashion is produced sustainably, made to last longer and repaired or recycled after use.
In the flight from plastic, companies urged to think outside the box
Could the drive to find plant-based alternatives to plastic packaging have unintended consequences for the world’s forests that are just as environmentally damaging?
Teamsters union pushes for US bankruptcy reform after Yellow's collapse
The International Brotherhood of Teamsters on Tuesday called for changes to U.S. bankruptcy laws following the Chapter 11 filing of freight trucking company Yellow Corp (YELL.O), saying that workers must not be "left behind" when big businesses fail.
After attacking Ukraine wheat exports, Russia faces own shipping challenge
Russia's lack of ships and Western grain traders' shrinking appetite for business with Moscow are adding to rising costs of moving Russian wheat, at a time when the war in Ukraine has spilled perilously close to vital Black Sea supply routes.
Declining imports compress US trade deficit in June
The U.S. trade deficit narrowed sharply in June as businesses cut back on purchases of foreign-made capital goods, resulting in imports falling to the lowest level in more than 1-1/2 years.
Solar panel maker Maxeon to open $1 billion US factory in New Mexico
Maxeon Solar (MAXN.O) on Thursday said it will spend more than $1 billion to build a solar cell and panel factory in Albuquerque, New Mexico, spurred by manufacturing subsidies in U.S. President Joe Biden's landmark climate change law.
German industrial output falls further in June
German industrial production dropped more strongly than forecast in June, according to data released on Monday, underlining the challenges faced by manufacturing amid a downturn in Europe's largest economy.
Taiwan pitches deeper Europe engagement after TSMC Germany investment
Taiwan said on Wednesday chipmaker TSMC's 3.5 billion euro ($3.83 billion) investment in Germany would drive deeper engagement between the island and Europe, while Berlin said it was a positive sign for bilateral ties.
UK retailer Wilko collapses, putting 12,500 jobs at risk
British homeware and household goods discount retailer Wilko said it had fallen into administration on Thursday, putting its 400 stores and 12,500 jobs in danger if a buyer can't be found.
Domino effect: India rice export ban puts market on edge for copycat curbs
India's rice export ban has the world market bracing for similar actions by rival suppliers to avoid potential domestic shortages as sellers try to fill the 10 million metric ton gap left by New Delhi, stoking concerns over already high global food inflation.
Maersk has ways to grow again despite headwinds
After three years of record growth fuelled by soaring post-pandemic demand, supply chain bottlenecks and higher prices, the shipping industry is having a reality check.
Hapag-Lloyd net profit dives 67% in H1, maintains outlook
German container shipper Hapag-Lloyd (HLAG.DE) on Thursday posted net profit of 2.9 billion euros ($3.18 billion) for the first half of 2023, down by 67% from a year earlier, but maintained its full year earnings forecast.
Amazon scraps several private label clothing brands - source
Amazon.com (AMZN.O) is shelving several private clothing brands, a source familiar with the matter said on Thursday, as the e-commerce giant tries to cut costs and address antitrust scrutiny.
Exclusive: Amazon in talks to become anchor investor in Arm ahead of IPO
Amazon.com (AMZN.O) is in talks about joining other technology companies as a cornerstone investor in SoftBank Group Corp's (9984.T) Arm Ltd ahead of its initial public offering (IPO), people familiar with the matter said on Tuesday.
German regulator rejects request for postage stamp price hike
Germany's federal network regulator has rejected a request by postal service operator Deutsche Post (DHLn.DE) to raise the price of a postage stamp to cover rising costs, the agency said on Monday.
Texas Instruments plans up to $1 bln investment to expand Philippine facilities
Analog chipmaker Texas Instruments (TXN.O) is planning to invest up to $1 billion to expand its Philippine facilities, the Southeast Asian nation's presidential communications office said on Thursday.
Focus: Key trade loophole keeps cheap Chinese products flowing to US
The meteoric rise of shopping platforms selling Chinese-made goods, including Shein and Temu, has been fueled by a decades-old loophole that allows cheap products like $10 dresses to land in U.S. mailboxes tariff-free.
Flood-hit northern China gears up for second typhoon in two weeks
Northern China, still grappling with swollen rivers and floodwaters caused by Typhoon Doksuri two weeks ago, is preparing for more rains with the arrival of Typhoon Khanun.
Solar power to the rescue as Europe's energy system weathers extreme heat
A major increase in solar power generation in southern Europe played a leading role in averting energy shortages during the heatwaves of recent weeks when temperatures broke records and drove unprecedented demand for air conditioning.
Uganda to reopen century-old rail link after China fails to fund new line
Uganda has begun restoring a branch of a century-old, British-built railway line that is expected to cut the cost of shipping goods to the country's north, South Sudan and Democratic Republic of Congo, a railway spokesperson said.
South Africa's mining output falls further below pre-pandemic levels
South Africa's mining output has fallen further below pre-pandemic levels due to persistent electricity outages and rail disruptions, industry data shows, threatening dividend payouts to investors.
Continental fights for price rises, to keep costs in check
Continental (CONG.DE) said it was fighting for price increases in negotiations with customers and seeking ways to further cut inventory to improve its automotive business performance.