The need to know
The need to know for the week ending 16th February 2024
The need to know from Reuters’ global network of journalists
Global trade war - or merry dance?
Globalisation may have stalled amid the fiery geopolitical posturing of recent years - but many doubt it's in reverse yet given supply chains have been re-routed rather than returned home and overall trade volumes less disturbed than first feared.
WTO meeting in Abu Dhabi - what's at stake?
Ministers from across the globe are convening for a World Trade Organization meeting in Abu Dhabi between Feb 26.-29 to try to broker deals, including on reforming its hobbled dispute system and cutting fishing subsidies.
EU stalls supply chain law after German, Italian objections
European Union countries on Friday postponed a decision on a proposed law requiring large companies to determine if their supply chains use forced labour or cause environmental damage after Germany and Italy indicated they would abstain.
ASML says geopolitics, new export restrictions remain risks
ASML (ASML.AS), opens new tab, the largest supplier of equipment to computer chip makers, said on Wednesday that geopolitical tensions and any expansion of a U.S.-led campaign to restrict its exports to China remain business risks.
BASF to exit joint ventures in China's Xinjiang amid rights record scrutiny
BASF (BASFn.DE), opens new tab said on Friday that it would sell its stakes in two joint ventures in the Chinese region of Xinjiang, where human rights groups have documented abuses including forced labour in detention camps.
Some Volkswagen cars delayed in U.S. ports over Chinese part
Volkswagen (VOWG_p.DE), opens new tab said on Wednesday it expected to resolve by the end of March delays in the delivery of thousands of vehicles held up at U.S. ports due to a customs problem.
Volkswagen in talks over future of Xinjiang site as pressure mounts
Volkswagen (VOWG_p.DE), opens new tab is in talks with its joint venture partner in China over its presence in Xinjiang, it said on Wednesday after a German newspaper reported what it said was evidence of the carmaker's involvement in forced labour.
Treasury Wine says it is ready to ship Australian bottles to China
Shares of Treasury Wine Estates (TWE.AX), opens new tab shot to a three-month high on Thursday after the company, one of the world's biggest wine makers, said core profit met expectations and it was ready to resume shipping Australian wine into China.
India's small exporters reel as Red Sea crisis helps rivals nab business
Atul Jhunjhunwala, an exporter in the Indian eastern city of Kolkata, is tearing his hair out, having just lost another order due to the Red Sea crisis that has jacked up his shipping costs and times.
Britain's tea supply facing disruption from Red Sea crisis
Britons may have to brave a shortage of some lines of tea, one of the nation's favourite drinks, after the supermarket industry warned of a risk to supply from shipping disruptions in the Red Sea.
Yemen's Houthis take responsibility for attack on Greek-owned bulk carrier
Yemen's Houthis claimed responsibility for a missile attack on Barbados-flagged bulk carrier "Lycavitos" in the Gulf of Aden on Thursday, the Iran-aligned militants said in a statement.
Target to offer some items starting at less than a dollar under new private-label brand
Target (TGT.N), opens new tab said on Thursday it will offer some everyday essentials at prices starting less than a dollar as part of the retailer's new private-label brand.
Kraft Heinz forecasts slower annual sales growth on tepid demand
Kraft Heinz (KHC.O), opens new tab forecast its annual core sales to grow at a slower pace, after posting a steeper-than-expected drop in quarterly sales, a sign that demand for its sauces and meat cold cuts would remain muted as customers digest past price hikes.
PepsiCo signals demand hit from price hikes with rare sales decline
PepsiCo (PEP.O), opens new tab on Friday reported a surprise drop in quarterly sales and forecast a sharp slowdown in organic revenue growth for 2024 as multiple price hikes weigh on demand for its beverages and chips, sending its shares down as much as 4%.
UK shoppers pick up their spending, signalling quick end to recession
British retail sales jumped by the most in almost three years in January as consumers recovered their appetite for spending, suggesting the economy could emerge quickly from its recession in the second half of last year.
Frigid temperatures chill US retail sales, factory production
U.S. retail sales fell by the most in 10 months in January, but economists cautioned against reading too much into the sharp drop amid frigid temperatures and difficulties adjusting the data for seasonal fluctuations at the start of the year.
US set to overtake China as Germany's top trade partner -DIHK
The United States is set to overtake China as Germany's most important trade partner by 2025 at the latest if current trends continue, according to the head of foreign trade at the German Chamber of Industry and Commerce (DIHK).
Germany to vote in favour of EU plans to cut truck emissions -govt sources
Germany plans to vote in favour of EU plans to cut truck emissions, government sources said on Friday, after Berlin's stance was unclear earlier this week following disagreement within the three-way coalition.
EU could break up Germany's DB Cargo after heavy losses, sources say
Losses at Germany's state rail freight operator leapt to almost 500 million euros ($535 million) last year, putting it at risk of being broken up if the EU deems the figures are distorting the market, three company sources familiar with the matter said.
EU to step up efforts for more carbon markets worldwide
The European Union will increase diplomatic efforts to help countries outside the bloc to launch carbon markets in the hope of fostering international trade of CO2 emissions, the bloc's climate policy chief said on Tuesday.
US railroad group wants to make tracking train cargo as easy as on Amazon
U.S. shoppers can easily track Amazon packages to their front door, but big railroad customers can't see the real-time location of shipments of BMW luxury cars, fuel or fertilizer as they crisscross the country. A U.S. coalition of railroad executives and their customers are working to change that.
China, US-led global refill of depleted oil stocks seen buoying demand
A push to replenish depleted oil stocks notably in China, the United States and Europe could buoy demand and prices in coming months, analysts and traders said, as tensions in the Middle East threaten key shipping lanes.
Oil demand growth slowing as non-OPEC supply expands, says IEA
Global oil demand growth is losing momentum, the International Energy Agency (IEA) said on Thursday as it trimmed its 2024 growth forecast, in sharp contrast to the view held by producer group OPEC.
US crude stockpiles rise, products draw down as refining slumps - EIA
U.S. crude oil stockpiles rose last week while gasoline and distillate inventories fell as refining dropped to their lowest levels since December 2022, the Energy Information Administration said on Wednesday.
Europe’s swollen gas stocks drive prices lower
Northwest Europe is roughly two-thirds of the way through the heating season, with a record volume of gas in storage for the time of year, which is putting downward pressure on gas prices.
Global raw sugar prices expected to rise 20% this year: Reuters poll
Raw sugar prices are expected to post an annual gain of nearly 20% in 2024 as the global market shifts into a deficit in the upcoming season, a Reuters poll of 12 traders and analysts showed.
White House touts $11 billion US semiconductor R&D program
The White House on Friday touted the U.S. government's plan to spend $11 billion on semiconductor-related research and development and said it was launching the $5 billion National Semiconductor Technology Center.
Battery maker ACC secures financing for three European factories
European auto battery manufacturer ACC, co-owned by Stellantis, Mercedes and TotalEnergies, on Monday announced the completion of a major financing round for the development of three "gigafactories" in France, Germany and Italy.
Stellantis to invest $111 mln in Hungary facility to produce electric drive modules
Stellantis (STLAM.MI), opens new tab said on Monday it will invest 103 million euros ($111.02 million) at its Szentgotthard facility in Hungary to increase production capacity of electric drive modules that will help the automaker grow its electric-vehicle portfolio.
China's BYD plans new electric vehicle plant in Mexico, says Nikkei
China's BYD Co Ltd will set up a new electric vehicle (EV) factory in Mexico, Nikkei reported on Wednesday, citing the company's Mexico head, as the EV maker aims to establish an export hub to the United States.
JSW Group to set up nearly $5 billion in EV projects in eastern India
India's JSW Group will set up electric vehicles and battery manufacturing projects in the country's eastern state of Odisha at a cost of 400 billion rupees ($4.82 billion).
Exclusive: India IT ministry fears losing out to China, Vietnam in smartphone exports race
India risks losing out to China and Vietnam as it seeks to become a major smartphone export hub and must "act fast" to lure global companies with lower tariffs, the deputy IT minister said in government documents seen by Reuters.
Robot invasion hit a bump in 2023 as North American economy cooled
North American companies ordered about a third fewer robots last year as worries about a slowing economy and higher interest rates made it harder to justify buying the advanced machines, the first hiccup in five years in what has been a steady progression of the robot invasion of the region's workforce.
EU Commission cuts 2024 euro zone growth forecast, sees smaller inflation
The euro zone economy will grow slower than expected this year after price growth eroded purchasing power and high ECB interest rates curbed credit, but inflation in 2024 will also be slower than expected, the European Commission said on Thursday.
Global factory activity rises in December for first time since May: PMI
Global manufacturing activity expanded last month for the first time since May, supported by solid output gains in China, the United States and Britain, a business survey showed on Wednesday.
India's December industrial output up 3.8% on year
India's industrial output (INIP=ECI), opens new tab rose at a faster-than-expected pace of 3.8% year-on-year in December, government data showed on Monday, on the back of a pick up in manufacturing activity.
China official manufacturing activity unexpectedly expands in March
Activity in China's manufacturing sector unexpectedly expanded in March, an official survey showed on Friday, adding to hopes that downward pressure on the world's second-largest economy is easing.
New bird flu outbreaks at Czech farms, minister says
Tests showed two new bird flu outbreaks at Czech farms where around 70,000 poultry would need to be culled, Agriculture Minister Marek Vyborny said on X social media platform on Wednesday.
Ukraine on track to export all 2023 grain, says Britain
Ukraine is on track to export all grain from its 2023 harvest despite Russian attacks on Ukrainian ports and infrastructure, according to Britain's foreign office, but the United Nations warns that the Black Sea export situation remains fragile.
France eases Olympics river restrictions to help grains flow
The French government will ease restrictions on grain transport on the river Seine during this year's Olympics in response to industry concerns about disruption at harvest-time in the European Union's biggest grain producing country.
Amazon, Mercado Libre may threaten e-commerce competition, Mexican regulator says
Mexican antitrust regulator Cofece said on Tuesday it had identified "possible barriers" to competition in the e-commerce market, with Amazon (AMZN.O), opens new tab and Mercado Libre (MELI.O), opens new tab together controlling more than 85% of transactions and sales.
US judge sets October 2026 trial for FTC antitrust suit against Amazon
A U.S. federal judge on Tuesday set an October 2026 trial date for a Federal Trade Commission antitrust lawsuit against Amazon.com (AMZN.O), opens new tab.
Temu is spending like a billionaire
Temu is spending like a billionaire to become America’s e-commerce champion, leaving winners and losers in its wake.
IEA to launch security program for minerals critical to energy sector
The International Energy Agency is launching a program to secure the supply of minerals critical to energy security, as demand rises fast while manufacturing remains in the hands of a few key producers, its executive director said on Tuesday.
US efforts to restore offshore wind pipeline spur factory investments
US Forged Rings, a new company created by piping group Canadoil, announced plans last week to invest $700 million in a tower fabrication facility and a steel forging plant on the East Coast to supply components to the offshore wind industry.
Global EV sales up 69% y/y in Jan, down 26% vs Dec - Rho Motion
Global electric vehicle sales jumped 69% in January from a year earlier but were down 26% from December, reflecting subsidy cuts or tighter rules in Germany and France and seasonally weaker sales in China, market research firm Rho Motion said on Wednesday.
Biden's drive for EVs collides with Detroit's profit machines
The Biden administration and automakers are in the final stages of negotiating over ambitious new rules to accelerate the electric-vehicle transition that could cost Detroit's automakers billions and fuel an election-year clash over climate policy.
Tower Semiconductor's Q4 revenue drops on softening demand for auto chips
Israel-based contract chipmaker Tower Semiconductor posted a decline in its fourth-quarter revenue on Wednesday, hurt by uncertainty in demand from the automotive sector.
European, US carmakers race to lower EVs costs as China competition heats up
Under pressure from Chinese competitors, major U.S. and European auto manufacturers are pushing hard to cut electric vehicle costs so they can have price tags and profit margins similar to those of fossil-fuel models, industry executives said on Thursday.
Germany's Habeck: hitting EV sales target requires 'tipping point'
Germany won't hit its target of having 15 million EVs on the road by 2030 if sales develop in a linear fashion, Economy Minister Robert Habeck said on Monday, adding the right conditions could still create a tipping point for demand.
Boeing to stabilize 737 production later this year, CFO says
Boeing (BA.N), opens new tab Chief Financial Officer Brian West said Tuesday the company will move to a steady 737 production rate of 38 aircraft per month in the second half of 2024 after slowing the line following last month's mid-air cabin blowout on a 737 MAX 9.
Boeing strikes conciliatory tone with suppliers amid 737 MAX crisis
Boeing (BA.N), opens new tab executives extended an olive branch to the company's strained supply chain this week to help them deal with the fallout of the latest 737 MAX crisis, but those firms are taking a wait-and-see attitude after years of dealing with the planemaker's hard-line approach.
Exclusive: Russians use Chinese partner to produce Citroen cars at idled Stellantis plant
Carmaker Stellantis (STLAM.MI), opens new tab halted production in Russia in April 2022.
Stellantis uses surplus plants in Europe as leverage in a fight with Rome
Stellantis (STLAM.MI), opens new tab, created by the combination of France's Peugeot maker Peugeot PSA, Italy's Fiat and Detroit's Chrysler, accounts for virtually all of Italy's car production.
Shopify holiday quarter results beat estimates but looming expenses drag shares
Canadian ecommerce services provider Shopify (SHOP.TO), opens new tab, on Tuesday beat analysts' estimates for fourth-quarter revenue and profit on strong demand from merchants during the all-important holiday shopping season.
Once pioneering Body Shop UK collapses into administration
The British business of the Body Shop has collapsed into administration, putting 2,000 jobs at risk at the one-time pioneering ethical cosmetics retailer.
US farm exports hit three-year low in 2023 as China slows buying
U.S. exports of agricultural and related products reached a value of $191 billion in 2023, down 10% from 2022’s record as both commodity prices and shipment volumes declined.
China to show off homegrown airliner at Singapore air show amid supply crunch
Singapore will play host to Asia's biggest air show next week for the first time since the end of COVID border restrictions, with regional travel rebounding and the military side of the show bristling with defensive systems and nervous arms buyers.