The need to know
The need to know for the week ending 27th July 2023
The need to know from Reuters’ global network of journalists
Drought-hit Panama Canal restricts daily crossings in water-saving move
The Panama Canal will extend restrictions on ships' maximum depth, it said on Tuesday, and it has limited average crossings at one of the world's busiest trade passages to just 32 ships a day as a prolonged drought continues.
UPS, union avert strike with planned 5-year deal, more pay
UPS (UPS.N) and its Teamsters union have signed a tentative contract deal for about 340,000 U.S. workers at the parcel delivery firm, one week ahead of a threatened strike that could have cost the economy billions and disrupted a quarter of the nation's package shipments.
Strike at trucking firm Yellow averted after deal
U.S. trucking firm Yellow (YELL.O) averted a threatened strike by 22,000 Teamsters-represented workers on Sunday, saying the company will pay the more than $50 million it owed in worker benefits and pension accruals.
German industry changes tack as river Rhine runs drier
German industry is finding new ways to transport cargoes from coal to chemicals as increasingly frequent low water levels on the Rhine disrupt Europe's largest economy.
FTC readies lawsuit that could break up Amazon, Politico reports
The U.S. Federal Trade Commission (FTC) is finalizing its long-awaited antitrust lawsuit against Amazon (AMZN.O) in a move that could ultimately break up parts of the company, Politico reported on Tuesday.
Global automakers scramble to reset China strategies as sales slow
For foreign automakers in China, it is time to double down on a turnaround or cut losses after ceding their leadership of the world's biggest auto market to local, upstart brands.
Exclusive: BYD tells India partner it wants to drop $1 bln EV investment plan-sources
China's BYD (002594.SZ) has told its India joint-venture partner it would shelve plans for a new $1-billion investment to build electric cars after its investment proposal faced scrutiny from New Delhi, two people with knowledge of the discussions said.
Porsche seeking investors, gigafactory site for Cellforce
Porsche AG (P911_p.DE) has taken full control of high-performance battery maker Cellforce Group and is seeking a location for a 10-20 gigawatt-hour factory and new investors, the luxury automaker said on Wednesday.
Porsche's EV sales target under threat from supply chain snags
Porsche AG warned on Wednesday that supply chain problems were hampering battery-electric vehicle (BEV) production and pointed to slower growth in Europe and China, but kept its BEV sales target on the basis that luxury demand was more resilient to downturns.
Ford slows EV ramp as Q2 commercial vehicle profit booms
Ford Motor (F.N) Chief Executive Jim Farley on Thursday outlined a significant change in the automaker's product strategy, slowing the ramp-up of money-losing EVs, shifting investment to Ford's commercial vehicle unit and citing plans to quadruple sales of gas electric hybrids over the next five years.
Focus: Ocean shippers playing catch up to electric vehicle fire risk
Electric vehicles are crisscrossing the globe to reach their eager buyers, but the battery technology involved in the zero- emission automobiles is exposing under-prepared maritime shippers to the risk of hard-to-control fires, industry, insurance and emergency response officials said.
US distillate stocks fail to make summer recovery amid refinery outages
U.S. diesel, heating oil and jet fuel stockpiles have failed to recover from the 10-year lows hit last year when high prices caused the Biden administration to consider a ban on fuel exports, leaving the markets vulnerable to supply shocks when demand picks up toward the end of the summer.
China's gasoline demand peak nears as EV boom hastens transition
China's demand for petrol is likely to peak as early as next year as electric vehicle sales soar, several analysts say, bringing forward an energy transition milestone for the world's biggest polluter and a headache for global refiners.
Column: Can Spain & Portugal solve Europe's industrial power cost crisis?
Several major European industrial sectors have been hammered by high power costs over the past year after Russia's invasion of Ukraine cut natural gas flows to the region and high inflation and interest rates cooled global consumer demand.
Chinese petrochemical firms bet big on energy transition products
Chinese oil refiners and petrochemical companies are investing tens of billions of dollars to produce high-end chemicals for solar panels and lithium-ion batteries to profit from growing demand for energy transition technologies.
Insight: Obscure traders ship half Russia's oil exports to India, China after sanctions
A Liberian-flagged oil tanker set sail in May from Russia's Ust-Luga port carrying crude on behalf of a little-known trading company based in Hong Kong. Before the ship had even reached its destination in India, the cargo changed hands.
Taiwan's Foxconn to take 50% stake in ZF axle system unit
Taiwan's Foxconn (2317.TW) will acquire a 50% stake in ZF Group's (ZFF.UL) axle system assembly unit, creating a joint venture aimed at growing automotive and supply chain opportunities, the companies said on Monday.
As Japan aligns with U.S. chip curbs on China, some in Tokyo feel uneasy
Japan's imposition of export controls on chip making tools to align with a U.S. policy restricting China's ability to produce advanced semiconductors is worrying some officials in Tokyo who believe a combative U.S. approach may hamper coordination and needlessly provoke Beijing.
U.S. will be short 67,000 chip workers by 2030, industry group says
The U.S. semiconductor industry faces a shortfall of roughly 67,000 workers by 2030, according to an industry association study published on Tuesday.
Germany earmarks 20 billion euros in subsidies for chip industry
Germany plans to invest around 20 billion euros ($22.15 billion) in the semiconductor industry in the coming years, the economy ministry said on Tuesday, as it seeks to attract global chipmakers to set up factories in the country.
China's Sunwoda plans $274.7 million Hungarian battery plant
China's Sunwoda Electronic (300207.SZ) plans to build a power battery factory in Hungary for electric vehicles, with initial investment of up to 1.96 billion yuan ($274.71 million), as Chinese battery makers expand in the European market.
Foxconn unit in talks for $200 million components plant in Tamil Nadu
A Foxconn (2317.TW) subsidiary is in talks with India's Tamil Nadu state to invest up to $200 million to build a new plant for electronic components in the southern region, two sources with direct knowledge told Reuters on Wednesday.
Foxconn, chip giants head to Modi's home state for India conference
Top executives from Foxconn and semiconductor firms Micron and AMD will this week attend a conference in Prime Minister Narendra Modi's home state, as the government tries to lure investments into India's nascent chip industry.
U.S. chipmaker AMD to invest $400 mln in India by 2028
U.S. chipmaker Advanced Micro Devices (AMD.O) said on Friday it will invest around $400 million in India over the next five years and will build its largest design center in the tech hub of Bengaluru.
Pfizer says supply of some drugs may be disrupted after NC tornado
Drugmaker Pfizer Inc (PFE.N) said over 30 drugs, including injections of painkiller fentanyl and anesthetic lidocaine, may see supply disruption after a tornado destroyed a warehouse at its Rocky Mount, North Carolina, plant last week.
Focus: Coffee, candy makers question EU deforestation law
Chocolate and coffee makers including Italy's Lavazza and Cadbury-maker Mondelez are concerned about the "practicalities" of a new European Union law aimed at stopping deforestation.
First Solar plans $1.1 billion investment in fifth U.S. panel factory
First Solar Inc (FSLR.O) on Thursday announced plans to spend up to $1.1 billion on what will be its fifth U.S. factory to meet booming demand for American-made solar panels.
Canada's Heliene plans new US solar panel and cell factory
Canadian solar panel maker Heliene is planning a major expansion of its U.S. manufacturing operations with a new Minnesota factory that will produce both modules and cells, its chief executive told Reuters.
Zara owner Inditex says it will stop buying clothes from Myanmar
Zara owner Inditex (ITX.MC) is in the process of stopping purchases from Myanmar, the company told Reuters on Thursday, as a result of a campaign by global workers' union IndustriALL to convince companies to divest from the country.
Analysis: China's pitch to foreign investors falls flat as incentives dwindle
China is struggling to revive foreign investment in its financially battered cities and provinces as foreign firms remain wary of political risks and new incentives fall far short of sweeteners once used to attract overseas money.
Africa's top iron ore miner build up stockpiles as rail woes worsen
Anglo American's (AAL.L) South African iron ore unit said collaboration between private investors and government could help resolve mounting rail bottlenecks which are forcing it to stockpile more iron ore at its mines.
Exclusive: Romanian port can ship more Ukraine grain after collapse of Black Sea deal
Romania's Constanta port, Ukraine's main alternative route for grain since Russia's withdrawal led to the collapse of the Black Sea shipment deal, has capacity to handle extra cargoes until mid-August, the head of the port's business association said.
Consumer goods makers flex pricing power in second quarter
Consumer products giants including Unilever (ULVR.L), Coca-Cola (KO.N) and Reckitt (RKT.L) have shown they can raise prices to cope with higher costs, but investors told Reuters they want to see more innovation to drive dwindling sales volumes.
Logistics firm DSV hikes profit guidance after Q2 beat
Denmark's DSV (DSV.CO), the world's third-largest freight forwarder, on Tuesday raised its full-year profit guidance on the back of stronger-than-expected second-quarter earnings and predicted a recovery in global trade volumes.
K+N's Q2 operating profit slides, but beats expectations
Kuehne+Nagel (KNIN.S) on Tuesday reported a 51% drop in second-quarter operating profit, but that still beat expectations, with the Swiss logistics group flagging higher market share in its sea and contract logistics divisions.
Warehousing specialist Segro posts rise in half-year profit
Warehousing specialist Segro (SGRO.L) on Thursday reported a rise in half-year profit on the strength of its e-commerce-focused urban logistics business even as elevated interest rate hit the value of commercial properties.
India's Mahindra Logistics swings to loss on higher costs, weak demand
India's Mahindra Logistics (MALO.NS) swung to a loss in the first quarter on Monday, hurt by higher expenses and lukewarm demand.
Column: LME's Russian aluminium dilemma set to become more acute
The London Metal Exchange (LME) is coming under renewed pressure to exclude Russian aluminium from its warehouse system.
Tesla to discuss factory plan for new $24,000 car with India commerce minister
Tesla representatives are set to meet India’s commerce minister this month to discuss plans to build a factory to produce what the company has described as an all-new $24,000 car, a person with direct knowledge of the matter told Reuters.
CBO revises U.S. 2023 growth forecast higher amid strong first-half labor market
The Congressional Budget Office revised its 2023 U.S. economic growth forecast substantially upward on Wednesday to 0.9% from a meager 0.1% forecast in February, citing a stronger-than-expected labor market in the first half of the year.
IMF edges 2023 global economic growth forecast higher, sees persistent challenges
The International Monetary Fund on Tuesday raised its 2023 global growth estimates slightly given resilient economic activity in the first quarter, but warned that persistent challenges were dampening the medium-term outlook.
Mexico's economy to slow in step with US growth moderation, Reuters poll shows
Mexico's economy will likely slow in step with an expected moderation of growth in the United States, but the decline could be limited by increased investment from companies relocating to the Latin American country, a Reuters poll showed.
TikTok to launch e-commerce program to bring Chinese goods to the US
TikTok plans to launch a program in August to help Chinese merchants sell goods globally, and will officially roll it out first to consumers in the United States, a person familiar with the matter said.
TikTok won't launch cross-border e-commerce services in Indonesia amid concerns
TikTok said it has no plans to roll out a cross-border business in Indonesia as a government minister on Thursday expressed concerns over how reported plans for a new e-commerce push by the firm could flood the country with Chinese products.
Brazil's postal service inks deal with Shopee to sell products to Asia
Brazil's postal service Correios said on Wednesday it has signed an agreement with Singaporean shopping app Shopee to boost exports of Brazilian products to Southeast Asian markets.
IMF: India's rice restrictions could fuel food price inflation
India's move to restrict exports of certain types of rice could help exacerbate food price inflation and should be reversed, International Monetary Fund chief economist Pierre-Olivier Gourinchas said on Tuesday.
Exclusive: India pharma exports soaring despite cough syrup deaths, trade body says
India's pharmaceutical exports this fiscal year are set to grow nearly twice as fast as last year to hit sales of $27 billion, driven by strong U.S. buying, a government-backed trade body told Reuters, despite deaths linked to Indian-made cough syrups.