The need to know
The need to know for the week ending 12th January 2024
The need to know from Reuters’ global network of journalists
Global trade drops 1.3% on Red Sea attacks - IfW Kiel institute
Global trade declined by 1.3% from November to December 2023 as militant attacks on merchant vessels in the Red Sea led to a plunge in the volumes of cargo transported in that key region, a German economic institute said on Thursday.
Exclusive: Tesla Berlin to stop most output for two weeks due to Red Sea disruption
Tesla (TSLA.O) will suspend most car production at its factory near Berlin from Jan. 29 to Feb. 11, the company said late on Thursday, citing a lack of components owing to shifts in transport routes because of attacks on vessels in the Red Sea.
Red Sea attacks: retailers rush to avoid delays to spring collections
Retailers worldwide are stocking up on goods before China's Lunar New Year holiday and seeking air or rail alternatives to transportation via the Red Sea in a scramble to avoid empty shelves this spring, executives and experts told Reuters.
DHL urges companies to tweak inventory plans due to Red Sea disruptions
German logistics giant DHL Group (DHLn.DE) is advising customers to take a close look at how they manage inventories as shippers switch away from the Red Sea, though trade associations said they did not expect any notable disruptions for Europe's top economy.
Hapag-Lloyd to continue to avoid Suez Canal, decide again next week
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.
China's COSCO halts shipping to Israel -Israeli media
Chinese shipping firm COSCO has suspended shipping to Israel, Israeli financial news website Globes reported on Sunday.
Maersk to use rail for some vessels to bypass Panama Canal amid drought
A.P. Moller-Maersk (MAERSKb.CO) will use trains to avoid the drought-hit Panama Canal for some of its vessels, the Danish shipping giant said as low water levels have caused one of the world's main maritime trade routes to reduce crossings.
Maersk hopes international interventions, naval presence will allow Red Sea transit to return
Maersk (MAERSKb.CO) hopes international interventions and a larger naval presence in the Red Sea will eventually lead to maritime commerce to resume through the strait, it said on Friday, following U.S-British strikes overnight against Houthi military targets in Yemen.
US and Britain strike Yemen in retaliation for Houthi attacks on shipping
U.S. and British warplanes, ships and submarines launched dozens of air strikes across Yemen overnight in retaliation against Iran-backed Houthi forces for attacks on Red Sea shipping, widening regional conflict stemming from Israel's war in Gaza.
US, UK forces repel 'largest attack' by Houthis in Red Sea
U.S. and British naval forces shot down 21 drones and missiles fired by Yemen-based Houthis on Tuesday towards the southern Red Sea, the United States said, with Britain hinting at further measures to protect international shipping lanes.Iran seizes oil tanker involved in US-Iran dispute in Gulf of Oman - state media
Iran seized a tanker with Iraqi crude destined for Turkey on Thursday in retaliation for the confiscation last year of the same vessel and its oil by the U.S., Iranian state media reported, a move likely to stoke regional tensions.
Shipping stocks rise, biggest gainers in Europe at start of 2024
Shipping companies have been the best performing stocks in Europe since the start of 2024, and were set for their biggest weekly jump in years, as the re-routing of vessels following attacks in the Red Sea boosted freight rates.
NY Fed says global supply chain pressures eased in December
Supply chain pressures cooled down last month, the Federal Reserve Bank of New York said on Friday, but it's possible the benign reading may be the calm before some turbulence arrives.
Global manufacturers struggle to regain momentum
U.S. manufacturers are still struggling to emerge from the prolonged slump that began in the middle of 2022 as the pandemic-driven surge in merchandise buying subsided and consumers reverted to spending on services.
German exports rise more than expected in November
German exports rose much more than expected in November as demand in the European Union increased strongly, data from the federal statistics office showed on Monday.
World Bank forecasts 2024 global growth to slow for third consecutive year
The World Bank warned on Tuesday that global growth in 2024 is set to slow for a third year in a row, prolonging poverty and debilitating debt levels in many developing countries.
China's exports rise, but deflation persists as economy enters 2024 on shaky footing
China's exports grew at a faster pace in December, while deflationary pressures persisted last month, keeping alive expectations for more policy easing measures to shore up an economy carrying significant pockets of weakness into 2024.
Explainer: Why is Germany's economy struggling in 2024?
Germany's ailing economy is experiencing a bumpy start to the year with farmers launching nationwide protests against government plans to cut diesel subsidies and train drivers planning several days of strikes over wage disputes.
US factory orders rebound in November
New orders for U.S.-made goods increased more than expected in November amid a surge in demand for civilian aircraft, government data showed on Friday
German industrial output drops unexpectedly in November
German industrial production unexpectedly fell in November, the federal statistics office said on Tuesday, marking the sixth monthly decline in a row.
German railways grind to near halt in three-day train drivers strike
Hundreds of thousands of people faced train cancellations across Germany from Wednesday, as a three-day nationwide rail strike added to travel chaos in Europe's largest economy, where farmers' protests have blocked highways and snarled traffic.
Exclusive: EU investigators to inspect China's BYD, Geely and SAIC in EV probe - source
European Commission investigators are to inspect Chinese automakers in the coming weeks as part of a probe into whether to impose punitive tariffs to protect European electric vehicle (EV) makers, three people involved in the process said.
China targets EU brandy in tit-for-tat anti-dumping probe
China has opened an anti-dumping investigation on brandy imported from the European Union, a step that appears to be mainly targeted at France and adds to ongoing trade disputes between Beijing and Brussels.
China raises concerns with US over chip-making export controls, sanctions
China's Commerce Minister Wang Wentao expressed concern over U.S. curbs preventing third countries from exporting lithography machines to China during a phone call with U.S. Commerce Secretary Gina Raimondo on Thursday, his ministry said.
China's auto exports can hold the fast lane
China's auto exports are moving fast. The country has displaced Japan as the world's largest shipper of cars abroad, sending more than 5 million overseas last year, the China Passenger Car Association said on Tuesday.
Global EV market growth to slow this year on lower subsidies - report
Growth in the global electric-vehicle market is set to slow to 27.1% this year as a reduction in state subsidies makes the cars less appealing to buyers, according to research firm Canalys.
Global electric car sales rose 31% in 2023 - Rho Motion
Global sales of fully electric and plug-in hybrid vehicles (PHEVs) rose 31% in 2023, down from 60% growth in 2022, according to market research firm Rho Motion.
VW brand 2023 sales recover from supply chain troubles
The Volkswagen (VOWG_p.DE) brand's sales recovered in 2023 to 4.87 million cars, the carmaker said on Tuesday, after the previous year's sales were dampened by supply chain troubles.
Northvolt gains EU nod for $986 mln German aid to build EV battery plant
Swedish lithium-ion battery producer Northvolt on Monday secured EU approval for 902-million-euro ($986.43 million) in German state aid to build an electric vehicle battery production plant in the north of Germany.
Vietnam's VinFast to set up $500 million EV facilities in India
Vietnamese electric vehicle (EV) maker VinFast signed an agreement on Saturday to set up its first manufacturing facilities in India, as the ambitious company seeks to penetrate the world's third-largest vehicle market.
Aeva to supply sensors to Daimler Truck in $1 billion deal
Aeva Technologies (AEVA.N) on Tuesday said that it has reached a $1 billion deal with Germany's Daimler Truck (DTGGe.DE) to supply sensors for self-driving trucks that are expected to hit U.S. roads in 2027.
BMW retools Munich headquarters for all-electric production from 2027
BMW (BMWG.DE) is investing 650 million euros ($711 million) to convert its main plant in Munich to exclusively produce EVs from the end of 2027, the carmaker said on Wednesday, a major stepping stone in the transition to the electric age.
Toyota Motor: to restart vehicle plants in Japan from Monday
Toyota Motor (7203.T) said it would restart its Japanese vehicle plants on Monday but, given the impact of the New Year's Day earthquake, would decide separately about operations from Jan. 15.
Tesla to raise pay for US factory workers - Bloomberg News
Tesla (TSLA.O) has told production workers in the United States that they will get a pay hike, Bloomberg News reported on Thursday.
Comment: Why Brazilian investors need to be on the frontline of fighting climate change
There are now as many cows as people in Brazil, and, despite a recent drop-off in deforestation rates, the destruction of the Amazon and Cerrado for agriculture – as well as mining, infrastructure and fossil fuels – continues at enormous speed, with over 2,500 sq km felled in the first half of 2023.
Can artificial intelligence pave the way for greener cement and steel?
Artificial intelligence and heavy industries such as cement, steel, energy and chemicals would seem to occupy worlds at opposite ends of the technology spectrum.
Microsoft, Qcells strike massive supply deal for US-made solar panels
South Korea's Qcells on Monday said it will supply Microsoft (MSFT.O) with 12 gigawatts of American-made solar panels through 2032 in what the companies called one of the largest ever deals of its kind.
US battery storage capacity to nearly double in 2024 - EIA
U.S. battery storage capacity could increase by 89% by the end of 2024 if all planned energy storage systems are brought online at the targeted time, the Energy Information Administration said on Tuesday.
Oil soars as US, UK strike on Houthis stirs up geopolitical worries
The oil price surged on Friday, as the escalating conflict in the Red Sea region threatened to further disrupt global trade, while stocks rose in light of U.S. inflation data that reinforced investors' view that interest rates could soon fall.
US oil stockpiles rise more than forecast, distillates build to Sept 2021 high -EIA
U.S. crude oil stockpiles rose unexpectedly last week and fuel inventories grew by more than expected, with distillates building to their highest level in over two years, the Energy Information Administration (EIA) said on Wednesday.
US distillate inventories normalize as fuel demand slows
Recent builds in U.S. distillate stocks have pushed inventories to normal levels for the first time since early 2022, a sign that analysts say may indicate that markets are steadying after several years of wild price fluctuations.
UK retailers report subdued Christmas spending: BRC
British retailers reported lacklustre sales around Christmas, according to industry data released on Tuesday which may add to concerns that the economy has tipped into a mild recession, less than a year before a likely national election.
Carrefour drops Pepsico for now but will it make a difference?
Carrefour (CARR.PA) says it has ditched Pepsico (PEP.O) products in four European countries for taking price hikes too far, but the negotiation tactic may have little impact given the size of some global brands, industry experts said.
France's Leclerc backs Carrefour in pressuring food producers
The chairman of France's biggest supermarket chain E. Leclerc called on all big consumer goods firms to lower their prices as he weighed in on competitor Carrefour's (CARR.PA) decision to drop Pepsico (PEP.O) products amid fraught price negotiations.
ABB buys tech company to give industrial robots eyes and brains
ABB (ABBN.S) has bought a company specialising in boosting the mobility of industrial robots - by using artificial intelligence and 3D vision to move around factories and warehouses.
Exclusive: SK On may start mass producing LFP batteries for automakers in 2026 - executive
South Korea's SK On plans to start mass producing lithium iron phosphate (LFP) batteries as early as 2026 to supply several automakers as it pushes to deliver a lower cost battery chemistry favoured by its Chinese rivals, a senior executive said.
Stellantis to invest in French sodium-ion battery maker for EV output
Stellantis (STLAM.MI) announced on Friday that it is investing in French sodium-ion battery startup Tiamat to diversify its portfolio and mass-produce electric vehicles while reducing exposure to scarce resources.
UAE's DP world signs $3 bln MOUs with India's Gujarat state government
UAE's DP World signed $3 billion worth of memoranda of understanding with India's Gujarat state government, the Dubai media office said in a statement.
JD.Com's Dada identifies 'suspicious practices' in internal audit
China's e-commerce group JD.Com (9618.HK) said its unit Dada Nexus (DADA.O) had identified "certain suspicious practices" in an internal audit that may cast doubt on the unit's online advertising, marketing services revenues and operation costs.
US wholesale inventories unrevised in November
U.S. wholesale inventories fell for a second straight month in November, suggesting that a slow pace of inventory accumulation could undercut economic growth in the fourth quarter.
Amazon staff at new UK warehouse to strike on Jan. 25
Workers at Amazon's (AMZN.O) new distribution centre in Birmingham, England have voted to join ongoing strike action at the company over pay and working conditions, the GMB trade union said on Tuesday.
India's Tamil Nadu in $4.4 billion deals with Apple suppliers, other investors
India's southern state of Tamil Nadu has signed investment pacts worth more than $4.39 billion with firms such as Apple (AAPL.O) suppliers Tata Electronics and Pegatron (4938.TW), as well as auto major Hyundai Motors (005380.KS), it said on Sunday.
Dutch online grocer Picnic raises $388 mln from investors, Gates Foundation
Dutch online grocery store Picnic has raised 355 million euros ($388.02 million) from its investors and plans to further expand in France and Germany, it said in a statement on Tuesday.
Siberian airlines seek to keep flying 50-year-old jets amid Russian plane shortage
Two Siberian airlines have asked the Russian government to extend the service life of Soviet-era Antonov aircraft, many of which are over 50 years old, as Russian planemakers scramble to plug the gap left by the exodus of foreign manufacturers.
Surging tanker rates close the door on US crude oil shipments to Asia
The economic incentive to import oil from the U.S. Gulf Coast to Asia has closed as the cost of booking supertankers on the route has surged amid a jump in bookings for the vessels, traders said this week.
Airbus lands record orders in 2023, beats Boeing on deliveries
Airbus (AIR.PA) reported record annual jet orders and confirmed an 11% rise in 2023 deliveries on Thursday, maintaining the top manufacturing spot against rival Boeing (BA.N) for a fifth year.
Zara founder Ortega buys Dutch warehouse leased to Primark for $110 million
Spanish billionaire Amancio Ortega has bought a logistics centre in the Netherlands currently used by rival British fashion retailer Primark for 110 million euros ($121 million), his family office Pontegadea said.
Alumina price panic a sign of future aluminium volatility
The new year started with a bang in the Chinese alumina market.
Mercedes lines up new investment and array of cars for India
Mercedes Benz (MBGn.DE) will invest $24 million in India this year and launch over a dozen new cars with a focus on pricier models that have seen strong demand from young, affluent Indians, a top executive said on Monday.
VW passenger cars does not expect 'significant' production impact from Red Sea attacks
BERLIN, Jan 12 (Reuters) - Volkswagen's (VOWG_p.DE) passenger cars brand does not expect "significant" restrictions to production due to the Red Sea attacks, a spokesperson said on Friday, after Tesla said production at its German site would be mostly halted.
UK's B&M not expecting material impact from Red Sea attacks
LONDON, Jan 9 (Reuters) - British discount chain B&M (BMEB.L) does not expect any material impact from disruption to shipments through the Suez Canal due to attacks by Iran-backed Yemeni Houthi militants in the Red Sea, its CEO said on Tuesday.