The need to know

The need to know for the week ending 16th August 2024

The need to know from Reuters’ global network of journalists

Possible US seaport strike could back up goods for months, shipping experts say

A potential strike at U.S. seaports on the East Coast and Gulf of Mexico could back up cargo there for weeks or even months, shipping experts said on Wednesday.

Industry and shippers brace for Canada rail stoppage, fear 'catastrophe'

North American industry groups and shippers are bracing for an unprecedented simultaneous stoppage at both of Canada's main railway companies that could inflict billions of dollars' worth of economic damage.

Canada rejects CN Rail's request for binding arbitration in labor dispute

Canadian Labour Minister Steven MacKinnon has rejected a request by Canadian National Railway to initiate binding arbitration in a labor dispute with the Teamsters union, a spokesman for the minister said on Thursday.

BHP removes striking workers at huge Chile copper mine, output at risk

Mining giant BHP (BHP.AX) said on Tuesday it had started removing workers on strike at its Escondida copper mine in Chile, deepening tensions at the site after a powerful union rejected the company's latest invitation for talks on pay.

China to limit antimony exports in latest critical mineral curbs

China will impose export limits on antimony and related elements in the name of national security, its commerce ministry said on Thursday, Beijing's latest move to restrict shipments of critical minerals in which it is the dominant supplier.

Early US imports lessen risk from potential seaport strike, economist says

U.S. retailers' early back-to-school, Halloween and Christmas holiday imports could lessen cargo delays and financial damage should workers at vital seaports such as New York and Houston strike in October, a trade economist said on Tuesday.

Antimony prices gear up for new records on China export curbs

China's decision to restrict exports of antimony from Sept. 15 is likely to drive prices of the metal used in ammunition and batteries to new records, as buyers seek more material to stockpile, analysts and traders said on Thursday.

China's curbs on exports of strategic minerals

China will impose export limits on antimony to protect national interests and security, the government said on Thursday, adding to a series of measures to limit global availability of critical minerals whose supply the country dominates.

Exclusive: In shift, US backs global target to reduce plastic production, source says

The United States, one of the world's biggest plastic makers, will support a global treaty calling for a reduction in how much new plastic is produced each year in a major policy shift, a source close to U.S. negotiators told Reuters on Wednesday.

China's diesel demand fell in June by most in three years, US EIA says

China's diesel demand fell by 11% year over year to 3.9 million barrels per day in June, the biggest percentage drop since July 2021, the U.S. Energy Information Administration said on Thursday.

Key China energy indicators to track for the rest of 2024

Slower consumption in China spurred the Organization of the Petroleum Exporting Countries (OPEC) to cut estimates for global oil demand growth this week, highlighting the vital role that the world's second largest economy plays in energy markets.

China's spending slump weighs as e-commerce giant Alibaba misses estimates

Alibaba Group Holding (9988.HK) missed market expectations for first-quarter revenue on Thursday, as the company's domestic e-commerce sales came under pressure from cautious spending by Chinese consumers in a faltering economy.

China e-commerce group JD.com beats profit forecasts in second quarter

Chinese e-commerce group JD.com (9618.HK) on Thursday reported forecast beating second-quarter profits, helped by price cuts that attracted cost-conscious shoppers to its platform.

Alibaba and JD reveal two ways to cope in downturn

The diverging fortunes of China's e-commerce giants show how different strategies of coping with the country's economic slowdown are playing out.

ZTO Express eyes largest Chinese company U.S. IPO since Alibaba

Logistics company ZTO Express has set terms for what could be the largest U.S. initial public offering this year and also the biggest by a Chinese company after the $25 billion IPO of e-commerce giant Alibaba Group Holding Ltd in 2014.

Indian logistics firm Ecom Express files for $310 mln IPO

Logistics firm Ecom Express on Thursday filed for an initial public offering (IPO) worth up to 26 billion rupees ($310 million), its draft papers showed.

Shopee-owner Sea signals strong online shopping momentum with revenue beat

Sea Ltd (SE.N) beat revenue estimates for the second quarter and raised its forecast for e-commerce platform Shopee, signaling robust demand for online shopping in Southeast Asia and sending its U.S.-listed shares up 11% on Tuesday.

Britain to trial use of drones in deliveries, emergency services

Britain's aviation regulator has selected six projects, including one by e-commerce giant Amazon (AMZN.O), to test the use of drones in deliveries, inspection of infrastructure and emergency services, it said on Thursday.

China trials cargo drones, air taxis as low-altitude economy gains speed

Engineers sent China's biggest-yet cargo drone on a test run over the weekend while a helicopter taxi took to the skies on a soon-to-open 100-km (62-mile) route to Shanghai, laying new milestones for the country's expanding low-altitude economy.

Shake Shack, Serve Robotics roll out autonomous sidewalk robot delivery in Los Angeles

Fast-food chain Shake Shack (SHAK.N) and Serve Robotics (SERV.O) are partnering to use autonomous sidewalk robots to deliver orders placed on Uber Eats, the companies said on Wednesday.

Shipping firms respond to Houthi attacks in Red Sea

Attacks on vessels in the Red Sea by Iran-aligned Houthi militants have disrupted a shipping route vital to east-west trade, with prolonged rerouting of shipments pushing freight rates higher and causing congestion in Asian and European ports.

Hapag-Lloyd posts 75% lower first half profit but stresses market strength

German container firm Hapag-Lloyd (HLAG.DE) on Wednesday posted a 75% lower net profit in the first half of 2024 but focused on a higher full-year earnings outlook, where it had raised key figures in July citing market strength.

Hapag-Lloyd expects global ship order book to rise, but not to worrying level

The global ship order book, representing 18% of the world fleet, is expected to increase, but within plausible levels, the head of German container liner Hapag-Lloyd (HLAG.DE) told analysts on Wednesday.

DP World's first-half profit more than halves amid Middle East tensions

Dubai-owned ports and logistics company DP World reported a 59% drop in first-half profit on Thursday, as it grappled with shipping disruptions in the Red sea linked to the ongoing Israel-Hamas war in Gaza.

Two ships report blasts in the Red Sea off Yemen, maritime security agencies say

Two crude oil tanker ships reported coming under attack in the Red Sea off the coast of Yemen on Tuesday, although neither reported damage, maritime security agencies said.

EV maker Rivian halts production of Amazon delivery vans amid parts shortage

Rivian (RIVN.O) has temporarily suspended production of its commercial delivery vans used by retail giant Amazon.com (AMZN.O) due to a shortage of parts, a spokesperson for the electric vehicle manufacturer said on Friday.

South Korea urges automakers to disclose EV battery brands after fires

South Korea will urge automakers operating in the country to identify batteries used in their electric vehicles, the government said on Tuesday, as authorities seek to calm public safety concerns after a series of fires involving EVs.

Senate panel approves long-delayed trade deals

A Senate panel on Tuesday backed long-delayed trade pacts with South Korea, Colombia and Panama that are expected to boost U.S. exports by about $13 billion a year, paving the way for final approval.

China's biodiesel producers seek new outlets as hefty EU tariffs bite

Chinese biodiesel producers are seeking new outlets in Asia for their exports and exploring producing other biofuels as supply to the European Union, their biggest buyer, dries up ahead of anti-dumping tariffs, biofuel executives and analysts said.

US solar group seeks retroactive duties on surge of panel imports from Vietnam, Thailand

A group of U.S. solar panel makers asked the Commerce Department on Thursday to consider imposing duties retroactively on Vietnam and Thailand due to a surge in imports, as those countries face probes for alleged unfair practices in the multi-billion-dollar trade.

Swedish EV maker Polestar starts U.S. production, avoiding heavy tariffs

Swedish electric-vehicle (EV) maker Polestar (A4N1y.F) moved one step further in avoiding major tariffs imposed on Chinese-made cars on Wednesday when the automaker said it began production of its Polestar 3 SUV in the United States.

South Korean alarm over EV fires puts spotlight on safety concerns

South Korea is urging automakers operating in the country to disclose the manufacturer of batteries used in electric vehicles (EV) as authorities try to calm fears over fires involving EVs, after a recent blaze in an underground parking lot that took eight hours to put out.

Texas Instruments to get $1.6 bln in latest CHIPS Act funding

Texas Instruments (TXN.O) on Friday became the latest semiconductor maker to obtain grants and loans from the U.S. government under President Joe Biden's efforts to supercharge domestic chip production.

Autos, Hurricane Beryl weigh on US manufacturing output in July

Production at U.S. factories fell in July amid a decline in motor vehicle output and disruptions from Hurricane Beryl.

China's factory output slows, dashing speedy recovery hopes

China's factory output slowed for a third straight month in July, showing the recovery in the world's second-largest economy was losing steam, although the battered consumer sector perked up slightly as stimulus targeting households took effect.

US retail sales rise more than expected in July

U.S. retail sales rose more than expected in July, which could help to allay financial market fears of a sharp economic slowdown that were fanned by a jump in the unemployment rate.

German investor morale tumbles in August

German investor morale darkened more than expected in August, posting its strongest decline in two years, the ZEW economic research institute said on Tuesday.

Japan's economy rebounds strongly on consumption boost, backs case for more rate hikes

Japan's economy expanded by a much faster-than-expected annualised 3.1% in the second quarter, rebounding from a slump at the start of the year thanks to a strong rise in consumption and backing the case for another near-term interest rate hike.

US annual consumer price increase slows to below 3% as inflation ebbs

U.S. consumer prices rose moderately in July and the annual increase in inflation slowed to below 3% for the first time in nearly 3-1/2 years, opening the door wider for the Federal Reserve to cut interest rates next month.

UK inflation picks up less than expected, boosting rate cut bets

British consumer price inflation increased for the first time this year in July, official figures showed on Wednesday, but the rise was smaller than expected as services prices - closely watched by the Bank of England - rose less rapidly.

US import prices edge up in July

U.S. import prices barely rose in July, extending the flow of tame inflation readings that have bolstered financial market expectations for an interest rate cut next month.

Harris aims at stubbornly high prices

Vice President Kamala Harris' speech in Raleigh, North Carolina, on Friday will focus on economics, and specifically around her plans to lower costs and target "corporate price-gouging" if she is elected president, according to her campaign.

Kroger plans to lower prices by $1 bln after Albertsons merger closes

Supermarket chain Kroger (KR.N) plans to lower grocery prices by $1 billion after the completion of its proposed $25 billion merger with smaller rival Albertsons (ACI.N), a company spokesperson said on Thursday.

Walmart boosts sales outlook, shares surge to record

Americans are worried about inflation, so they are shopping more at Walmart (WMT.N).

Leasing model behind Europe's EV drive at risk of breakdown

Low resale values for electric cars have pushed the leasing firms that drive Europe's auto market to double prices over the last three years and some are threatening to quit the business altogether if regulators force them to go electric too fast, industry executives say.

Global EV sales up 21% in July as China records biggest jump of 2024, Rho Motion says

Global sales of fully electric and plug-in hybrid vehicles rose by a yearly 21% in July, thanks to China's strongest growth this year and despite dropping demand in Europe, market research firm Rho Motion said Monday.

India's Ola Electric soars to $7 bln valuation on e-motorcycle launch, battery plan

India's top e-scooter maker Ola Electric Mobility (OLAE.NS) surged 20% on Friday to reach a valuation of 586.64 billion rupees ($6.99 billion), after it launched a new line of motorcycles and on bets it will lower costs by using its own batteries.

UK's Royal Mail parent to sell US freight business to DC Logistics

International Distributions Services <IDSI.L>, the parent company of Royal Mail, announced on Monday that its parcel services business, GLS, will sell its U.S. freight divisions to California-based DC Logistics.

Indian steelmakers' body seeks export tariff on low-grade iron ore, pellets

India's leading steelmakers' body wants the government to impose an export tax on low-grade iron ore and pellets to address local shortages, according to a letter by the Indian Steel Association (ISA), which was seen by Reuters.

M&M's candy maker Mars to buy out Pringles parent Kellanova in $36 bln deal

Family-owned packaged food giant Mars, whose candy brands include M&M's and Snickers, said on Wednesday it would buy Pringles maker Kellanova (K.N) for nearly $36 billion in the biggest deal in the packaged food sector.

France reports bird flu on farm for first time since January

A French farm has had an outbreak of highly pathogenic avian influenza for the first time since January, the agriculture ministry said in a statement late on Tuesday.

Sicily's orange growers call for help as drought threatens output

Sicily's orange farmers warned on Tuesday that searing heat and drought risked wrecking this year's production and called for help from regional and national authorities to save their business.

Maersk agrees to study nuclear-powered container shipping

Danish shipping group Maersk (MAERSKb.CO) has agreed to join a study by maritime services firm Lloyd's Register (LR) and UK-based Core Power, that will assess the potential for nuclear-powered container shipping in Europe, LR said on Thursday.

TE Connectivity settles with US for illegally shipping components to Chinese entities

Global electronics company TE Connectivity has agreed to pay $5.8 million to settle with the U.S. Department of Commerce for illegally shipping items to parties tied to Chinese hypersonics, drone and military electronics programs.

EU executive confident its Chinese EV measures comply with WTO, says probe continues

The European Commission is confident its investigation into, and measures against, state subsidies for Chinese electric vehicles are compatible with World Trade Organization rules and its probe will continue, the EU executive arm said on Friday.

Nikola posts smaller-than-expected loss on robust truck demand

Nikola (NKLA.O) beat Wall Street expectations for second-quarter revenue and posted a smaller-than-expected adjusted loss on Friday, signaling an uptick in deliveries of its hydrogen big rigs as clients ramped up spending. Shares of the electric truck maker rose 17% in early trading.

Boeing delivers 43 jets in July, flat year-on-year

Boeing (BA.N) said on Tuesday it delivered 43 commercial jets in July, unchanged from the same month a year earlier when it faced supply chain hurdles, as the U.S. planemaker works to grow aircraft production under new CEO Kelly Ortberg.

Ukraine boosts grain exports despite intensified Russian attacks

Ukraine is scrambling to ship as much grain as it can this summer, taking advantage of military gains it has made in the Black Sea area to boost exports even as Russia has attacked its ports.

China, Vietnam eye boost to rail links as top leaders meet

Rail links will be high on the agenda when Vietnam's newly appointed leader To Lam travels to China to meet President Xi Jinping next week, officials said, as the neighbours seek to boost trade.

Chicago soybeans may have found fair market value if demand can be trusted

Soybean prices were already on their way to a historical downward correction before suspicions of a record U.S. crop were confirmed this week, and the latest price levels could be satisfactory if demand is cooperative.

Iron ore outlook dims as China inventories, steel output fade

The price of iron ore has dropped for a sixth consecutive week as China's steel sector continues to struggle and port inventories of the raw material stop rising.

Tire maker Goodyear to invest C$575 million to upgrade Canada plant

The Canadian unit of Goodyear Tire & Rubber Co (GT.O) will invest over C$575 million ($418.4 million) to upgrade its plant in Napanee, Ontario, Prime Minister Justin Trudeau said on Monday.

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