The need to know
The need to know for the week ending 13th September 2024
The need to know from Reuters’ global network of journalists
Surge of imports to US continues as possible East Coast port strike looms
Imports of U.S. container cargo in August jumped 12.9% from a year ago as a summer volume surge delayed cargo at major ports and anxiety builds over a threatened longshore worker strike on the East Coast and Gulf of Mexico on Oct. 1, trade data provider Descartes Systems Group (DSG.TO) said on Tuesday.
Labour woes at India operations of global companies
Samsung Electronics' (005930.KS) operations at its plant in southern India were disrupted for a second day on Tuesday by hundreds of employees striking for higher wages.
German union ready to strike as industrial sector pay talks start
Germany's largest industrial union, IG Metall, demanded a pay rise of 7% for almost four million workers in the country's auto, electrical and metal industries as collective bargaining talks got under way on Wednesday.
Boeing strike threat looms as workers vote on contract
Boeing's (BA.N) U.S. West Coast factory workers started voting on Thursday on a much-criticized new contract and a possible strike, piling pressure on the planemaker as it wrestles with chronic production delays and mounting debt.
India's bid to match China's factory heft gets a reality check
India's push to become a factory titan has hit a snag: to become a credible alternative to China for global firms, it first needs to warm up to its long-time rival.
RTX sees labor challenges, exploring alternatives to China suppliers
The head of aerospace and defense giant RTX (RTX.N) sounded the alarm on global supply chains in the wake of the COVID-19 pandemic and warned that finding qualified labor for in-demand jet industry production lines remains a "huge" challenge.
Turkish firms face wave of closures amid economic reckoning
It is hard for Dogan Duman to see how he can keep his garment factory in central Turkey running much longer, even after firing a third of his staff to cut costs that have soared for companies nationwide, generating a wave of bankruptcies and closures.
What to know about Samsung’s India operations as workers strike
The Indian operations of South Korean giant Samsung Electronics (005930.KS) were disrupted for a second day on Tuesday after hundreds of workers at its consumer electronics plant in southern India boycotted work to demand higher wages.
Factories in Vietnam's export hubs face weeks of disruption after typhoon
Typhoon Yagi caused severe damage to many factories and flooded warehouses in northern Vietnam's export-oriented industrial hubs, with some shuttered plants expected to need weeks to return to full operation, executives said.
UPS says services may be impacted in southern US, Louisiana by Hurricane Francine
United Parcel Service (UPS.N) said on Wednesday its pickup and delivery services in the southern part of the U.S., especially Louisiana, may be impacted due to Hu FedEx warns of delays in some Louisiana markets due to Storm Francine.
FedEx (FDX.N) said on Tuesday pickup and delivery services in some markets of Louisiana could be disrupted by the expected upheaval from Storm Francine, which is set to become the fourth hurricane of the Atlantic season.
Trump's plan to hike tariffs would spike shipping costs, just like in 2018, experts say
U.S. presidential contender Donald Trump's plan to hike tariffs on imports if he is elected back to the White House in November would send cargo rates soaring and accelerate inflation, just like it did during his 2017-21 term, shipping and retail experts said.
Canada mulls surtax on Chinese critical mineral products, batteries, solar products
Canada said on Tuesday it was considering a potential surtax on Chinese critical mineral products, batteries and parts, solar products, and semiconductors, a move which could prompt more retaliation from Beijing.
FACTBOX German carmakers most exposed to Chinese counter-tariffs
Retaliatory tariffs by China to the European Commission's proposed additional duties of up to 38.1% on Chinese-made electric vehicles could spell trouble for European carmakers.
US businesses' optimism in China falls to record low, survey shows
Political tensions, China's slowing economic growth and fierce domestic competition are sapping the confidence of U.S. businesses in the country, with optimism about their five-year outlook falling to a record low, a survey showed.
European firms doubt China's appetite to fix economy, lobby group says
European firms in China doubt the government has a credible plan to boost demand in the ailing economy or will carry out long-promised reforms, diminishing their appetite to invest in the country, a European business lobby group said on Wednesday.
China, price cuts and costs: the fuel driving Volkswagen's crisis
In May, Volkswagen (VOWG_p.DE) finance chief Arno Antlitz warned that Europe's top carmaker had about two or three years to prepare for cut-throat competition from abroad, mainly China.
US lawmakers urge Biden to close tariff 'loophole' for Chinese small package imports
A majority of Democratic U.S. House of Representatives members on Wednesday urged President Joe Biden to use his executive powers to end a tariff "loophole" for low-value packages that they say are being exploited by Chinese e-commerce firms and fentanyl traffickers.
Germany drafting regulations for Chinese online discounters, Capital reports
Germany is drafting new regulations to ensure Chinese discount retailers such as Temu and Shein comply with standards for product safety, environmental protection, consumer rights, as well as customs and tax laws, Capital magazine reported.
EU rejects minimum price offers from Chinese EV exporters
The European Commission said on Thursday it had received offers from electric vehicle makers in China for minimum import prices into the European Union as a way of avoiding tariffs, but had rejected all of them.
US holiday sales to grow at slowest pace since 2018, report says
U.S. holiday sales are expected to grow at their slowest pace in six years, data from Deloitte showed on Thursday as persistent inflation and dried up savings turn shoppers more frugal for the all-important shopping period.
Denmark's DSV wins 14 billion-euro race for Deutsche Bahn's Schenker, sources say
Danish logistics company DSV (DSV.CO) won the race to buy Schenker, the rail logistics arm of German state railway Deutsche Bahn, sources at the railway and at the German government said.
US Postal Service to end discounted rates for package consolidators
The U.S. Postal Service said Wednesday it will no longer offer discounted rates for packages entered by consolidators, part of a wide ranging effort to modernize its network.
Boohoo's prettylittlething brings back free returns ahead of holidays
The returning boss of Boohoo-owned (BOOH.L) online fashion retailer prettylittlething.com is bringing back free returns ahead of the holiday season, accepting a drain on profitability widely viewed as necessary to be competitive.
UK's Boohoo to stop supplying US customers locally
Online fashion retailer Boohoo (BOOH.L) said on Wednesday it would stop supplying U.S. customers from a site in Pennsylvania and return to fulfilling orders from Britain, in a strategy reversal it said would lead to an unquantified writedown.
UPS to buy Germany-based healthcare logistics firm Frigo-Trans
UPS (UPS.N) said on Tuesday it would acquire Germany-based healthcare logistics firm Frigo-Trans for an undisclosed amount to boost its healthcare cold-chain facilities in Europe.
Emissions-free truck prices need to drop by 50% to compete with diesel, study says
Prices of emissions-free trucks need to fall by as much as half to make them an affordable alternative to diesel models, a study by consultancy firm McKinsey published on Wednesday said, a necessary step to help achieve European Union climate targets.
IEA cuts 2024 oil demand growth forecast on China slowdown
Global oil demand will rise less than previously thought this year, led by weakness in China, the International Energy Agency (IEA) said on Thursday, bolstering its view that consumption is heading towards a plateau this decade.
US diesel futures hit 3-year low as oil selloff deepens on demand concerns
U.S. ultra-low sulfur diesel futures <HOc1> fell to a three-year low on Tuesday, dragged down by concerns of weak economic activity which have also deepened a selloff in the broader oil market.
Latin America's e-commerce king says MercadoLibre has huge room for growth
Marcos Galperin, chief executive of Latin American e-commerce giant MercadoLibre Inc (MELI.O) - already the region's most valuable listed firm - says the company is just getting started.
Maersk, Hapag-Lloyd will add more vessels to alliance if Red Sea disruption continues
Maersk (MAERSKb.CO) and Hapag-Lloyd (HLAG.DE) could add more container vessels to an alliance announced earlier this year if shipping disruptions in the Red Sea continue, the companies said on Tuesday.
Exclusive: Samsung Elec plans global job cuts of up to 30% in some divisions, sources say Samsung Electronics (005930.KS), the world's top maker of smartphones, TVs and memory chips, is cutting up to 30% of its overseas staff at some divisions, three sources with direct knowledge of the matter told Reuters.
China's Chery plans investment drive to build Omoda, Jaecoo brands in Europe
Chinese carmaker Chery Auto is ready to spend billions of euros to ensure its Omoda and Jaecoo brands are embraced by European customers within three years, the head of the two brands for the Italian market told Reuters.
Apple supplier Jabil to set up South India plant with $238 mln investment
Electronic components maker Jabil (JBL.N) will set up a manufacturing plant in India's southern state of Tamil Nadu with an investment of about 20 billion rupees ($238.2 million), the state's industries minister said on Tuesday.
Mercedes teams up with Factorial to develop solid-state batteries
Mercedes-Benz (MBGn.DE) and U.S. battery startup Factorial are working on a solid-state battery that should dramatically increase electric vehicle range and be ready for production by the end of the decade, the companies said on Tuesday.
Stellantis to invest over $406 mln in Michigan plants in EV, hybrid push
Stellantis (STLAM.MI) said on Wednesday it would invest more than $406 million in three facilities in Michigan to develop a platform that can be shared for both electric and hybrid vehicles.
Global EV sales up 20% in August despite 19-month low in Europe, Rho Motion says
Global sales of fully electric and plug-in hybrid vehicles rose by a yearly 20% in August, driven by record high sales in China, and despite a 33% drop in Europe to its weakest month since January 2023, market research firm Rho Motion said on Thursday.
Battery maker Northvolt moves ahead in Canada but at slower pace
Electric vehicle battery maker Northvolt is moving ahead with plans to open a C$7 billion battery plant in Canada but at a slower pace in light of its announcement on Monday it would review spending plans and mull job cuts.
China proposes negotiations with EU to resolve EV tariff dispute
China has renewed its offer for talks with the European Commission to address economic and trade frictions to try to ease impending punitive tariffs on China-made electric vehicles.
China's Geely scouting locations for Europe plant
Chinese carmaker Geely (0175.HK) is scouting locations for a plant in Europe but has not committed fully to building up local production, executives from the car conglomerate said in interviews with Reuters in Frankfurt.
Stellantis pauses production of electric Fiat 500 due to poor demand
Stellantis (STLAM.MI) said on Thursday it would suspend production of the fully electric Fiat 500 small car for four weeks due to sluggish demand.
Swedish battery maker Northvolt mulls job cuts as it seeks to save costs
Battery maker Northvolt said on Monday it would suspend cathode active material production at its gigafactory in Sweden and cut costs under a plan that could lead to job losses as the company scales back its rapid expansion.
Tesla-supplier Panasonic Energy prepares for high-capacity EV battery production
Japanese Tesla (TSLA.O) supplier Panasonic Energy has finalised preparations for the mass-production of its high-capacity electric-vehicle batteries, the company said on Monday, as it seeks to start supplying the cell to automakers.
GM in talks to buy Chinese EV batteries built in the US, Bloomberg News reports
General Motors (GM.N) is in talks to buy electric vehicle batteries relying on technology from China's CATL (300750.SZ), assembled at a new plant to be built in the US, Bloomberg News reported on Thursday, citing people familiar with the matter.
Stellantis to invest over $406 mln in Michigan plants in EV, hybrid push
Stellantis (STLAM.MI) said on Wednesday it would invest more than $406 million in three facilities in Michigan to develop a platform that can be shared for both electric and hybrid vehicles.
China warns carmakers of risks in building plants overseas, sources say
China's commerce ministry has warned the country's carmakers of the risks of making auto-related investments overseas at a recent meeting, said two people briefed about the matter, as they seek global expansion to counter slowing growth in their home market.
EU-Mercosur trade talks progress on divisive issues, sources say
European Union and South American negotiators ended two days of trade negotiations on Friday with "significant progress" on contentious issues that have been holding up the long-overdue EU-Mercosur agreement, two sources close to the talks said.
China sets low bar for firms in new carbon market expansion plan
China's plan to expand its carbon market to steel, cement and aluminium will cover 60% of its total climate-warming greenhouse gas emissions, but the relatively low bar set for companies could blunt its impact in the first phase, experts told Reuters.
Japan's business sentiment in Sept hits 7-month low on soft Chinese demand
Business confidence at big Japanese manufacturers sank to a seven-month low in September, with managers across a wide range of sectors citing soft Chinese demand as a concern, a Reuters monthly poll showed on Wednesday.
China's exports up solidly but slowing imports dim trade outlook
China's exports grew at their fastest pace in nearly 1-1/2 years in August, suggesting manufacturers are rushing out orders ahead of tariffs expected from a growing number of trade partners, while imports disappointed amid weak domestic demand.
India's industrial output up 4.8% y/y in July
India's industrial output (INIP=ECI) grew at 4.8% year-on-year in July, on the back of an increased electricity output, government data showed on Thursday.
US small business sentiment ebbs in August amid rising uncertainty
U.S. small-business confidence fell in August, reversing the prior month's jump amid growing uncertainty ahead of the Nov. 5 presidential election and expectations of weak sales.
US producer prices rise slightly above expectations in August
U.S. producer prices increased slightly more than expected in August amid higher costs for services, but the trend remained consistent with subsiding inflation.
Kroger raises lower end of annual sales forecast as cheap groceries lure shoppers
Kroger (KR.N) raised the lower end of its annual sales forecast after topping quarterly results on Thursday, as its efforts to offer freshly sourced groceries at lower prices helped draw customers looking to stretch their dollars.
Nike shareholders vote against proposal on workers' rights
Nike (NKE.N) shareholders have voted against a proposal to consider joining binding agreements with supply chain workers to better address human rights issues in high-risk countries at its annual meeting, the company said on Tuesday.
GM, Hyundai Motor to explore joint vehicle development projects
General Motors (GM.N) and Hyundai Motor Co (005380.KS) said on Thursday they have agreed to explore future collaboration across key strategic areas including potential joint vehicle development, supply chain issues and clean-energy technologies.
Exclusive: Boeing delays suppliers' 737 MAX output goal by 6 months, sources say
Boeing has told suppliers it is delaying a key production milestone for its 737 MAX by six months, three industry sources said, in a sign the planemaker is struggling to boost production of its best-selling jet.
China's CATL says plans to adjust lithium production in Jiangxi
Chinese battery giant CATL (300750.SZ) plans to adjust its lithium production in the southern province of Jiangxi, the company said on Wednesday.
‘Sustainable’ logging operations are clear-cutting Canada’s climate-fighting forests
Nonprofit environment watchdogs put their stamps of approval on countless wood products that get touted as responsibly produced. But Reuters found that the timber firms these groups certify are harvesting large swaths of Canada’s older forests, which are critical to containing global warming.
Porsche-backed German start-up Cylib breaks ground on battery recycling plant
German battery recycling start-up Cylib, which counts Porsche and Bosch as backers, broke ground on its first European industrial plant in western Germany, the company said on Monday.
Aldi UK says shoppers trading up as inflation eases
Supermarket group Aldi UK said its prices this summer were on average lower than a year ago, easing some of the pressures on its British shoppers who were treating themselves to more of its premium ranges.
Brazil's Modern Logistics looks to US, Mexico, M&A for expansion
Brazilian cargo company Modern Logistics expects to enter the U.S. and Mexican markets in the next few months as it puts in place an expansion strategy that will include looking at merger and acquisition opportunities in the short to mid-term.
Amazon is in South Africa for the long run, says marketplace head
U.S. e-commerce giant Amazon.com (AMZN.O) is in South Africa for the long run, its regional marketplace head said on Thursday, after its first foray into Sub-Saharan Africa four months ago.
EU asks Australia to make foreign investment easier, eyes critical minerals
The European Union would like Australia to make foreign investment easier, its ambassador in Canberra said on Wednesday, as the bloc looks to diversify its supply chain for critical minerals.
Hijacks a big security concern for S.Africa's last-mile delivery companies
As e-commerce continues to grow in South Africa, last-mile delivery trucks and vans are increasingly becoming prime targets of hijacking syndicates, driving up security costs for these companies, executives said on Thursday.
Canadian National lowers 2024 profit forecast due to labor stoppages, wildfires
Canadian National Railway (CN) (CNR.TO) lowered its profit forecast for 2024, citing the impact of labor stoppages and wildfires in Alberta.
Exclusive: India probe finds Amazon, Walmart's Flipkart breached antitrust laws
An Indian antitrust investigation has found U.S. e-commerce giant Amazon (AMZN.O) and Walmart's (WMT.N) Flipkart violated local competition laws by giving preference to select sellers on their shopping websites, according to confidential reports seen by Reuters.
Helium demand to double by 2035, tracking chip production boom, report says
The global demand for helium is likely to nearly double by 2035, backed mostly by a rise in demand from the semiconductor industry due to the lack of viable alternatives, according to a report by market research firm IDTechEx.