The need to know
The need to know for the week ending 5th January 2024
The need to know from Reuters’ global network of journalists
Ocean cargo rates climb after new Red Sea ship attacks
Ocean freight rates are surging after a missile attack and attempted hijacking of a Maersk ship this weekend prompted carriers to suspend plans to restart transits through the Red Sea, a key artery to the vital Suez Canal trade route.
Maersk reroutes Red Sea container ships back to Suez Canal
Denmark's Maersk (MAERSKb.CO) said on Thursday it has rerouted four out of five container vessels that were stuck in the Red Sea back towards the Suez Canal and the long journey around Africa to avoid the risk of attack.
Shipping firms react to Houthi attacks in the Red Sea
Iranian-backed Houthi militants in Yemen have stepped up attacks on vessels in the Red Sea since November to show their support for Palestinian Islamist group Hamas fighting Israel in Gaza.
Red Sea windfall will only delay shippers’ pain
Yemen’s Houthis are stirring up the Red Sea and shipping company investors.
Red Sea attacks could moderate growth at UK's Next, says CEO
British clothing retailer Next's (NXT.L) sales growth will likely be moderated if disruption to shipments through the Suez Canal due to attacks by Iran-backed Yemeni Houthi militants in the Red Sea continues through 2024, its boss said on Thursday.
US sinks 3 ships, kills 10 after Houthi Red Sea attack
U.S. helicopters repelled an attack by Iran-backed Houthi militants on a Maersk (MAERSKb.CO) container vessel in the Red Sea, sinking three ships and killing 10 militants, according to accounts by American, Maersk, and Houthi officials on Sunday.
Yemen's Houthis say they 'targeted' container ship, no damage reported
Yemen's Iran-backed Houthis said on Wednesday they had "targeted" a container ship bound for Israel, a day after the U.S. Central Command (CENTCOM) said the militant group had fired two anti-ship ballistic missiles in the southern Red Sea.
France's CMA CGM hikes shipping rates between Asia and Mediterranean
French shipping group CMA CGM (CMACG.UL) will increase its container shipping rates from Asia to the Mediterranean region by up to 100% as of Jan. 15 compared to Jan. 1, it said in a notice posted on its website on Tuesday.
Hapag-Lloyd to avoid Suez for at least another week - spokesperson
Germany's Hapag-Lloyd (HLAG.DE) will continue to divert its vessels away from the Suez Canal and around the Cape of Good Hope for security reasons, a spokesperson for the company said on Tuesday.
Europe-bound diesel, jet fuel cargoes divert from Red Sea
At least four tankers transporting diesel and jet fuel from the Middle East and India to Europe are taking the longer route around Africa to avoid the Red Sea, ship tracking data show.
Oil settles lower on massive US fuel inventory builds
Oil settled lower on Thursday in a choppy see-saw session, as massive weekly gasoline and distillate stock builds overshadowed a larger-than-expected crude stock draw.
Slow demand set to keep oil price near $80/b in 2024, Reuters poll shows
International oil prices are likely to stay near $80 a barrel in 2024, a Reuters poll showed on Friday, as analysts predicted weak global growth would cap demand, while geopolitical tensions could provide support.
Europe’s gas price falls to encourage more industrial use: Kemp
Europe’s gas inventories are on course to end the winter of 2023/24 at or near a record high as mild temperatures across the region fail to erode the enormous surplus inherited from the winter of 2022/23.
Fed minutes cite lower inflation risks, concern about 'overly restrictive' policy
Federal Reserve officials in December launched an expansive debate about a coming turn in U.S. monetary policy, with fresh concerns voiced about how long the economy could hold up under current high interest rates and at least initial discussion about when to halt the rundown of its balance sheet, according to minutes of the Dec. 12-13 meeting.
Euro zone inflation jump cools case for ECB rate cuts
Euro zone inflation jumped as expected last month, supporting the European Central Bank’s case to keep interest rates at record highs for some time, even as markets continued to bet on a rapid fall in borrowing costs.
World food price index ends 2023 some 10% below 2022 levels
The United Nations food agency's world price index ended last year about 10% below its 2022, with values in December also down from the previous month, helping further ease concerns over global food price inflation.
Carrefour pulls PepsiCo products over price hikes
Carrefour (CARR.PA) is telling customers in four European countries it will no longer sell products, such as Pepsi, Lay's crisps and 7up because they have become too costly, in the latest tug-of-war over prices between retailers and global food giants.
UK shop price inflation holds at lowest since June 2022 - BRC
Prices charged by British store chains rose at the joint slowest pace in a year and a half in December, an industry group said on Tuesday.
Inflation up in German states, pointing to national rise
Inflation rose in six economically important German states in December, preliminary data showed on Thursday, suggesting a bumpy road ahead for German inflation.
Exclusive: India probes DHL, FedEx, UPS for alleged antitrust practices, price collusion
India's antitrust body is investigating domestic units of global delivery companies, such as Germany's DHL, U.S.-based United Parcel Service (UPS.N) and FedEx (FDX.N), for alleged collusion on discounts and tariffs, documents seen by Reuters showed.
US online holiday spending up 5% on steep discounts, BNPL options - report
Online spending by U.S. shoppers rose 4.9% during the 2023 holiday season, an Adobe Analytics report showed on Thursday, as intense promotions on items such as electronics and apparel, as well as deferred payment options helped fuel consumer appetite.
Discounters, Sainsbury's and Tesco are UK Christmas winners - Kantar
German-owned discounters Aldi and Lidl, No. 2 player Sainsbury's (SBRY.L), and market leader Tesco (TSCO.L) were the biggest winners among British supermarkets at Christmas, according to industry data published on Wednesday.
Global factory activity ended 2023 on a soft note
Global factories had a weak finish to 2023, with euro zone activity contracting for an 18th straight month in December and Asia's manufacturing powerhouses taking a hit due to China's patchy economic recovery.
UK company bosses turn gloomier about economy - IoD survey
British business leaders have turned more pessimistic about the outlook for the country's economy and they are holding back on investment decisions, according to a survey published on Wednesday.
Euro zone business activity shrank again in Dec, pointing to recession
The contraction in euro zone business activity continued at the end of 2023 due to a persistent downturn in the dominant services industry, a survey showed on Thursday, indicating the bloc's economy was in recession.
Canadian factory PMI hits 3-1/2-year low on 'subdued' demand
Canada's factory sector contracted in December at its steepest pace since the early months of the COVID-19 pandemic as the rising cost of manufactured goods crimped demand, data showed on Tuesday.
UK factory revival prospects suffer setback in December - PMI
Britain's manufacturing sector suffered a setback in its attempts to return to growth as output and employment fell more sharply in December than the previous month, according to a survey published on Tuesday.
South African rand little changed as PMI dips on port gridlock
The South African rand was broadly unchanged on Thursday, as a purchasing managers' index (PMI) survey flagged the impact of a gridlock at a major port.
Breakingviews: Temu hurts Amazon more than it helps
Temu’s “shop like a billionaire” tagline is catching fire with U.S. consumers.
Polish farmers resume Ukraine border protest
Polish farmers blockaded the Medyka border crossing with Ukraine on Thursday, private broadcaster Polsat News reported, resuming a protest intended to secure government subsidies for corn and prevent tax increases.
‘Polluter pays’ doctrine will take on new meaning
Companies will learn the hard way that polluting the world has a cost.
Logistics firms plot a sea-change in sustainability through AI and automation
“If you squint hard enough, an entirely new logistics paradigm is coming into view,” predicted McKinsey in a 2019 report.
Germany's 2023 CO2 emissions fall to lowest in 70 years but drop not yet sustainable - study
Germany's carbon dioxide emissions in 2023 fell to their lowest since the 1950s due to less coal-fired power and reduced output by energy-intensive industries, but the decline is unsustainable without climate policy changes, a study said on Thursday.
US wants to contain China's chip industry. This startup shows it won't be easy
Last year, a veteran Silicon Valley software executive took the helm of a startup in his native China, company records show. The startup told potential investors it would sell microchip design software that is mostly available from just a handful of large Western companies.
Beijing criticises Netherlands' move to block ASML exports to China
China on Tuesday urged the Netherlands to "respect market principles" a day after chip machine maker ASML (ASML.AS) said the Dutch government had revoked an export licence covering the shipment of some of its equipment to China.
Mobileye's supply glut warning rattles auto chip stocks
Self-driving technology company Mobileye Global (MBLY.O) warned on Thursday that a pullback in orders from customers clearing excess inventory will batter its results this year, sparking a selloff in the shares of auto chip suppliers.
Japanese firms rush to resume production as earthquake disrupts local economy
Japanese manufacturers rushed to resume production four days after a magnitude 7.6 earthquake killed at least 94 and disrupted infrastructures in the country's west coast, as businesses were returning from gloomy New Year holidays.
Brazil logistics firm Sequoia to merge with peer MOVE3
Brazilian logistics firm Sequoia Logistica (SEQL3.SA) has signed a preliminary agreement with shareholders of peer Grupo MOVE3 for a merger of the companies, it said in a securities filing on Tuesday.
GM leads US auto sales as industry concludes best year since pandemic
General Motors (GM.N) edged out rival Toyota Motor (7203.T) to remain the top-selling automaker in the U.S. in 2023 as easing supply snags and sustained demand drove the industry to its best year since the pandemic.
Vietnam's VinFast to set up EV battery plant in India -sources
Vietnamese electric vehicle maker VinFast is set to open its first Indian manufacturing facility, where it will make batteries, in the southern state of Tamil Nadu, three people familiar with the matter said.
US plans $162 million award to Microchip Technology to boost production
The U.S. Commerce Department said on Thursday it plans to award Microchip Technology (MCHP.O) $162 million in government grants to step up U.S. production of semiconductors and microcontroller units (MCUs) key to the consumer and defense industries.