The need to know
The need to know for the week ending 27th October 2023
The need to know from Reuters’ global network of journalists
China ups critical minerals heat with graphite controls
China is upping the critical minerals stakes by curbing exports of graphite, a key raw material in electric vehicle batteries.
Mood swing: Global producers in US hunt for China alternatives
Jason Andringa’s company was part of the stampede of U.S. businesses that built factories in China.
Japan's automakers look at battery procurement after China graphite move
Japanese automakers are taking a hard look at their electric vehicle battery procurement strategies, with some aiming to limit risks where possible, executives said on Wednesday, following China's planned move to curb exports of graphite.
Analysis: China's graphite curbs will accelerate plans around alternatives
China's move on Friday to curb exports of graphite, a key electric vehicle battery material, will only accelerate efforts to develop alternative sources and materials, but that will take time, industry executives and analysts said.
Foxconn’s China woes expose supply chain dilemma
Taiwan-based iPhone maker Foxconn looks stuck between a rock and a hard place.
Dutch lawmakers question new US export restrictions on ASML chip machine
Several Dutch lawmakers on Tuesday challenged the Netherlands' Trade Minister over whether the U.S. has acted correctly in unilaterally imposing new rules regulating the export to China of another chipmaking machine made by ASML Holding (ASML.AS).
UPS cuts 2023 revenue outlook, says demand weak headed into holiday peak
United Parcel Service (UPS) (UPS.N) cut its 2023 revenue forecast for the second straight quarter on Thursday as delivery demand continued to soften ahead of the key holiday season, sending its shares down 5% in early trading.
US auto strike's economic fallout starts to hurt global businesses
Businesses ranging from airlines to auto parts makers are starting to feel the heat from the month-long strike by hourly workers at the Detroit Three automakers, with analysts warning that the financial hit could increase if the walkout does not end soon.
Ford, UAW reach tentative deal to end strike including record pay raise
The United Auto Workers (UAW) union reached a tentative labor deal on Wednesday with Ford Motor (F.N), the first of Detroit's Big Three car manufacturers to negotiate a settlement to strikes joined by 45,000 workers since mid-September.
Price rises slow, but Unilever and others struggle to win shoppers back
Packaged goods makers including Unilever (ULVR.L) and Nestle (NESN.S) disappointed investors with weak third-quarter sales volumes, but that could change in the coming months as price increases moderate.
German exports to China hit by slow customs processing, tech firms warn
German technology groups have warned they are being hit by delays in getting China-bound exports through customs, following the introduction of a German government strategy to reduce economic dependence on demand from China.
One dead, four missing after freighters collide in North Sea
One body has been recovered, two people have been rescued, and four are missing after two freighters collided in the North Sea off the coast of Germany, the maritime emergency authority said on Tuesday.
China's Great Wall Motor is first EV maker to respond to EU anti-subsidy probe
China's Great Wall Motor said it had formally submitted responses to the European Commission's anti-subsidy investigation of Chinese-made electric vehicles (EVs), while calling for a fair and open trade environment.
Mitsubishi Motors to end production in China, invest in Renault EV unit
Japan's Mitsubishi Motors (7211.T) said it will end production of its cars at its joint venture in China and transfer its stake in the unit to its Chinese partner, becoming the latest foreign automaker to cut back its operations in the world's top auto market.
EU sets up new mechanisms to stave off medicine shortages
The European Commission on Tuesday launched some short-term measures to prevent medicine shortages this winter and the next as a stop-gap while a proposed pharmaceutical rules overhaul is hashed out by the EU's key legislative arms.
Historic Amazon drought halts some grain barge navigation
Some grain shipments on rivers in Northern Brazil have been halted due to a drought that has sent Amazon river tributaries to the lowest level in over a century, according to a note sent to clients on Thursday by shipping services provider Serveporto.
Amazon analysts expect same-day delivery to boost margins in Q3
Investors will look for signs that Amazon’s aggressive expansion of same-day delivery services helped increase its third-quarter profit margin by spurring shoppers to place more frequent and bigger orders.
Amazon discloses 181 mln users in EU in first store transparency report
Amazon (AMZN.O) has more than 181 million users in the European Union and directly employs more than 150,000 people in the region, the company said on Wednesday, in its first store transparency report as required by the EU Digital Services Act (DSA).
US weekly jobless claims at nine-month low; labor market remains tight
The number of Americans filing new claims for unemployment benefits fell to a nine-month low last week, indicating that strong job growth persisted in October as the labor market remains tight.
US third-quarter economic growth seen fastest in nearly 2 years
The U.S. economy likely grew in the third quarter at its fastest pace of any quarter in nearly two years, again defying dire warnings of a recession, as higher wages from a tight labor market helped to power consumer spending.
UK retailers suffer joint-worst October on record: CBI
British retailers reported their joint-worst October for sales volumes on record and they expect another difficult time in November as households struggle with the higher cost of living, a Confederation of British Industry survey showed on Thursday.
Toymakers Hasbro, Mattel slump after sounding alarm over holiday spending
Toymaker Hasbro (HAS.O) disappointed investors with its results on Thursday, joining Barbie-maker Mattel in warning of a weak holiday season and indicating that consumers are being frugal heading into the most important period for retailers.
September sizzler hurts UK retail as shoppers avoid autumn fashions
British retail sales fell more than expected in September as shoppers avoided buying autumn clothing during unseasonably warm weather, against a backdrop of broader cost of living pressures that could see the economy shrink overall in the third quarter.
Analysis: China to choose fiscal muscle over big reforms to revive economy
China is set to unleash fresh fiscal stimulus to shore up its economic recovery, drawing on a well-used playbook that relies heavily on debt and state spending but falls short on the deeper reforms called for by a growing number of analysts.
Australian and US leaders to discuss Pacific infrastructure, critical minerals
Australia and the United States will announce plans to cooperate on critical minerals and bolster Pacific Islands infrastructure when Prime Minister Anthony Albanese visits Washington this week, a senior Biden administration official said.
Union Pacific seeks to rework some contracts; flags hit from UAW strike
Union Pacific (UNP.N) is re-negotiating some contracts to account for inflationary pressures, the railroad operator said on Thursday, and warned that it was beginning to feel the impact of the ongoing strike at the Detroit Three automakers.
In northeast China, Russian and Chinese firms ink deals from manufacturing to agriculture
Chinese and Russian companies attending a regional conference in northeastern China signed a raft of cooperation deals on Monday in sectors ranging from manufacturing and logistics to e-commerce and agriculture, Chinese state media reported.
Bain Capital forms $250 mln industrial property JV with China's DNE Group
Bain Capital and Chinese industrial real estate developer and operator DNE Group said on Tuesday they formed a joint venture with a $250 million equity commitment, as the U.S. firm looks for investment opportunities in manufacturing park assets in China.
Physical oil market flashes first signs of weakness after rally
Crude oil prices in some of the world's main physical markets have weakened due to a jump in freight costs and a drop in refining margins, according to traders and LSEG data, suggesting demand weakness that could filter through to the futures market.
High hopes for a smaller but more focused hydrogen economy
Hydrogen bulls have taken a beating recently, with the International Energy Agency (IEA) cutting demand for the fuel in key forecasts and oil major Shell (SHEL.L) announcing job cuts and reduced scale in its hydrogen business.
World's ghost fleet in focus over US Russian price cap crackdown
U.S. penalties on shippers transporting Russian oil in breach of the G7's price cap could push more Russian cargoes onto vessels referred to as the ghost fleet and away from mainstream tankers, shipping sources and analysts told Reuters.
Are iron-flow batteries the solution to variable renewables?
For the first time Australia's main electricity grid reached a share of over 70% for renewable energy this week, an achievement that showcases the rapid rise of solar and wind generation, but also highlights several challenges.
Strait of Hormuz: the world's most important oil artery
The Israel-Hamas war has raised the spectre of a wider regional conflict which could embroil Iran and other regional factions.
Ukraine says its Black Sea grain corridor is working
Ukrainian Deputy Prime Minister Oleksandr Kubrakov denied on Thursday reports by Ukrainian and British firms that the new Black Sea export corridor had been suspended.
Russian aluminium giant Rusal pivots towards China
Russian producer Rusal's decision to buy into a Chinese raw materials supplier is a significant marker in the reconfiguration of the global aluminium map.
Companies need to integrate climate reporting across functions to comply with California’s new law
California has enacted the first mandatory climate emissions disclosure rule, compelling companies to disclose and report their emissions.
Volkswagen cuts profit outlook on hit from raw material hedges
Volkswagen (VOWG_p.DE) cut its profit margin outlook for the current year on Friday, blaming negative effects from raw materials hedges at the end of the third quarter.
EU car sales rise 9.2% in September as demand for EVs jumps, industry group says
New car sales in the European Union rose 9.2% in September, helped by a jump in sales of electric and hybrid vehicles, which together accounted for more than half of car sales last month, industry data showed on Friday.
China’s renewable boom can't keep pace with power demand
China’s electrical generation surged to a seasonal record in September as the economy recovered from disruptions caused by the pandemic and lockdowns.
Israel's Ashdod port toils under shadow of rockets
When wailing sirens warn of incoming rockets from Gaza, workers at Israel’s Port of Ashdod stop operations within moments and quickly resume their work minutes later when the all clear is given.
Zara-owner Inditex to buy recycled polyester from US start-up
Zara-owner Inditex (ITX.MC), the world's biggest clothing retailer, has agreed to buy recycled polyester from a U.S. start-up as it aims for 25% of its fibers to come from "next-generation" materials by 2030.
Ford Canada plant could halt output next week due to US auto strike -union official
Production at a Ford Motor Company (F.N) engine plant in Canada could halt by next Wednesday if there are no changes to a United Auto Workers strike in Kentucky, a Canadian union representative told Reuters.
Mexico says Tesla factory still coming, vows infrastructure spending
Mexico's Nuevo Leon state said on Thursday that Tesla (TSLA.O) was still planning to build a factory and that the government would spend more than $130 million on infrastructure to support construction, a day after CEO Elon Musk said he was hesitating on the project.
Tesla supplier Syrah expects more graphite buys ahead of China export ban
Australian producer Syrah Resources (SYR.AX) on Thursday said it expects buyers outside of China to step up their purchases of natural graphite before stricter export controls on the battery material came into effect on December 1.
GE raises 2023 profit forecast yet again on aviation boom
General Electric (GE.N) on Tuesday raised its full-year profit forecast for a third time this year after quarterly earnings topped Wall Street estimates on robust demand for jet engine parts and services and a better performance in its renewable business.
EV truck maker Tevva 're-engages' with potential merger partners
British electric truck maker Tevva has "re-engaged" with a number of possible merger partners following ElectraMeccanica's (SOLO.O) decision earlier this month to cancel their planned deal and said on Monday it has a number of trucks in production.
EU on track to quit Russian fossil fuels - report
The European Union is on track towards its goal of ending Europe's reliance on Russian fossil fuels within this decade, the European Commission said on Tuesday.
Toyota to resume operations at remaining halted plants from Tuesday
Toyota Motor (7203.T) will gradually restart operations from Tuesday morning at the remaining lines of group plants that had been halted due to an accident at a supplier's facility last week, a spokesperson said.
Honda, GM scrap $5 bln plan to co-develop cheaper EVs
Honda Motor (7267.T) and General Motors (GM) (GM.N) are scrapping a plan to jointly develop affordable electric vehicles (EVs), the companies said on Wednesday, just a year after they agreed to work together in a $5 billion effort to try to beat Tesla (TSLA.O) in sales.