Posts belonging to Category Industry



Hyundai Motor says it’s in early talks with Apple to develop a car

Shares soaring 19%

Shares of Hyundai Motor surged 19% after the South Korean automaker said it was in early-stage talks with Apple over potentially working together to develop an electric car. “We understand that Apple is in discussion with a variety of global automakers, including Hyundai Motor. As the discussion is at its early stage, nothing has been decided,” a representative from Hyundai Motor told CNBC’s Chery Kang.

The statement followed a local report from the Korea Economic Daily that said Apple suggested the tie-up and Hyundai Motor was reviewing the terms. The report said both electric vehicle production as well as battery development were included in the proposal, and that the car could potentially be released in 2027.

https://www.cnbc.com/

Elon Musk is now the richest man on the planet

Tesla CEO Elon Musk’s fortune rose to $188.5 billion on Thursday, $1.5 billion more than Bezos

Amazon founder Jeff Bezos is no longer the richest man in the world, after Tesla CEO Elon Musk’s fortune on Thursday rose to $188.5 billion, $1.5 billion more than Bezos. Shares in electric carmaker Tesla rose by more than 6 percent on Thursday to push South African-born Musk into the top spot, dethroning Bezos from the place he has occupied for more than three years, according to the Bloomberg Billionaires Index. 

Tesla’s market capitalization, a measurement of the company’s stock price multiplied by its number of shares, has been on a tear since the beginning of last year, rising from about $80 billion in January 2020 to just over $760 billion today. Musk’s personal fortune, which is tied to Tesla’s share price, rose by more than $150 billion last year. The new valuation is more than eight times the combined values of the traditional “Big Three” U.S. automakers, GM, Ford and Fiat Chrysler.

https://www.nbcnews.com/

Apple wants to build its first car in 2024

Central to Apple’s strategy is a new battery

Apple Inc is moving forward with self-driving car technology and is targeting 2024 to produce a passenger vehicle that could include its own breakthrough battery technology.

The iPhone maker’s automotive efforts, known as Project Titan, have proceeded unevenly since 2014 when it first started to design its own vehicle from scratch. At one point, Apple drew back the effort to focus on software and reassessed its goals. Doug Field, an Apple veteran who had worked at Tesla Inc, returned to oversee the project in 2018 and laid off 190 people from the team in 2019.

Since then, Apple has progressed enough that it now aims to build a vehicle for consumers, two people familiar with the effort said, asking not to be named because Apple’s plans are not public. Apple’s goal of building a personal vehicle for the mass market contrasts with rivals such as Alphabet Inc’s Waymo, which has built robo-taxis to carry passengers for a driverless ride-hailing service. Central to Apple’s strategy is a new battery design that could “radically” reduce the cost of batteries and increase the vehicle’s range, according to a third person who has seen Apple’s battery design.

https://www.reuters.com/

Tilray stock soars after reverse merger deal with Aphria

Aphria shareholders will own 62% of combined company, which is expected to be the largest global cannabis company

Shares of Tilray Inc. soared Wednesday, after the company announced an agreement to merge with Aphria Inc., in a deal that is expected to create the world’s largest cannabis company by revenue, and with a combined equity value of about $3.9 billion. Under terms of the deal, Aphria shareholders will receive 0.8381 Tilray shares for each Aphria share they own, while Tilray shareholders will have no adjustments made to their holdings.

Once the deal is completed, which is expected to occur in the second quarter of 2021, Aphria shareholders will own 62% of Tilray’s outstanding shares. Based on Tuesday’s stock closing prices, the deal, which is structured as a reverse acquisition of Tilray, represents a 23% premium for Tilray shareholders. Aphria will become a wholly-owned subsidiary of Tilray.

https://www.marketwatch.com/

The potential impact of Brexit without a trade deal

Financial markets to tumble and huge economic costs

Britain and the European Union are seeking a post-Brexit trade deal, with failure likely to result in increased chaos in mutual trade, financial markets tumbling and huge economic costs. Here are some of the potential pressure points of a failure to reach agreement on trade.

Investors and banks have long predicted a trade deal would be done, so a no-deal would hit the British pound, foreign exchange traders say. But investor sentiment was hit by the sides saying on Saturday that there was still no agreement covering annual trade worth nearly $1 trillion, and sterling has fallen against the U.S. dollar since then. The shock result of Britain’s referendum on leaving the EU in 2016 sent the pound down 8% against the dollar, its biggest one-day fall since the era of free-floating exchange rates began in the 1970s.

In the case of a “no deal” on trade , Britain would lose zero-tariff and zero-quota access to the European single market of 450 million consumers overnight. Britain would default to World Trade Organization (WTO) terms in its trade with the 27-state bloc. It would impose its new UK global tariff (UKGT) on EU imports while the EU would impose its common external tariff on UK imports. Non-tariff barriers could hinder trade, with prices widely expected to rise for British consumers and businesses

Borders risk disruption, especially the main crossing points, with experts saying shortages of certain foods are possible in Britain as it imports 60% of its fresh food, with disruptions in British lamb exports to the EU also possible. Any disruption would be felt most keenly by sectors that rely on just-in-time supply chains, including autos, food and beverages. Other sectors likely to be affected would include textiles, pharmaceuticals, and chemical and petroleum products.

https://fr.reuters.com/

Oil Major Total, Carmaker PSA Set Up $6B EV Battery Venture

Ensuring industrial independence in Europe for the conception and manufacture of batteries

Supermajor Total continues to invest in clean energy by creating a joint venture with automaker Groupe PSA to manufacture batteries for electric vehicles in Europe—a project expected to mobilize investment of more than US$5.9 billion (5 billion euro). Total, via its subsidiary SAFT, will contribute to the project with industrialization and research and development (R&D) expertise, while PSA will contribute its automotive production experience, the French oil giant said in a statement.

An R&D center in Bordeaux and a pilot site in Nersac, France, have already launched work to develop new high-performance lithium-ion technologies. The companies plan to launch mass production after the R&D phase ends at two gigafactories in Europe, one in Douvrin, France, and one in Kaiserslautern, Germany. The joint venture plans to “ensure industrial independence in Europe for the conception and manufacture of batteries, with an initial capacity of 8 GWh, reaching a cumulative capacity of 48 GWh on both sites by 2030,” Total said.

https://oilprice.com/

Xpeng, a Chinese Rival to Tesla, Raises $1.5 Billion in U.S. IPO

Shares of electric-car maker jump 41% on the first day of trading in the U.S

Xpeng Inc., one of Tesla Inc.’s Chinese rivals, raised $1.5 billion through an initial public offering in the U.S., more than initially planned, because of high investor demand.

Xpeng sold 99.73 million American depositary shares at an offer price of $15 Thursday. That was more than the 85 million shares that were previously planned, and the offer price was higher than the initial guidance of $11-$13.
Shares  jumped as much as 67% after its U.S. market debut on Thursday, as capital markets continue to reward new listings in what has been one of the best years for IPOs since the dotcom boom.

https://www.reuters.com/

Is Hydrogen The Future For U.S. Power Companies?

Europe  far ahead of the United States in the shift to renewable energy

Last month, the European Union set out a comprehensive hydrogen strategy as part of its goal to achieve carbon neutrality for all its  The EU has an ambitious target to build out at least 40 gigawatts of electrolyzers within its borders by 2030 and also support the development of another 40 gigawatts of green hydrogen in nearby countries that can export to the region by the same date. The announcement came as little surprise, given that Europe is regarded as being far ahead of the United States in the shift to renewable energy.

But the hydrogen bug has finally arrived stateside: The U.S. Department of Energy has unveiled the H2@Scale initiative whereby a handful of companies including Cummins Inc. (NYSE: CMI), Caterpillar Inc.(NYSE: CAT), 3M Company (NYSE: MMM), Plug Power Inc. (NASDAQ: PLUG) and EV startup Nikola Corp. (NASDAQ: NKLA) will receive $64 million in government funding for hydrogen research projects.

Hot on the heels of the DoE initiative: American electric utility and renewable energy giant, NextEra Energy Inc.(NYSE: NEE), has unveiled an equally ambitious plan to start replacing its natural gas-powered plants with hydrogen.

https://oilprice.com/

Tesla shares surge past $1,000

Musk revs up the Semi

Tesla Inc’s (TSLA.O) stock jumped above $1,000 a share on Wednesday after Chief Executive Elon Musk told his staff it was time to bring the Tesla Semi commercial truck to “volume production.”

Musk, in an email seen by Reuters on Wednesday, did not specify a time frame for ramping up production of the Semi. Musk on Wednesday tweeted “Yes” to a question on Twitter about whether the report of the leaked Semi truck production email was accurate.

Tesla’s shares rose about 6% to hit $1,000 on Wednesday after Reuters reported Musk’s email, making the Silicon Valley company the second-most valuable automaker in the world, behind Japan’s Toyota Motor Corp (7203.T). Tesla’s share surge could position Musk for another payout from a stock compensation plan tied to the company’s market capitalization.

https://www.reuters.com/

GM to increase North America vehicle production

Rising demand

General Motors (GM.N) said on Thursday it would start increasing vehicle production in North America from next week to meet rising demand.

Starting June 1 , three of the company’s crossover assembly plants in the United States and Canada will be operating two production shifts, and three U.S. assembly plants building mid-and full-size pickups will move from one to three-shift operations, GM said.

https://www.reuters.com/

Fed chair says economic slump could last until ‘end of next year’

Top Trump official says country safe to reopen

Federal Reserve Chair Jerome H. Powell said Sunday that the U.S. economy may not recover from the damage inflicted by the coronavirus pandemic for at least another 18 months. The current slump “could stretch through the end of next year,” Powell predicted in an interview with CBS’s “60 Minutes.”

Health and Human Services Secretary Alex Azar claimed Sunday that it was safe to reopen the economy because half the U.S. counties with covid-19 cases “haven’t had a single death.”

https://www.washingtonpost.com/

While The Coronavirus Spreads, The 5G Is Rising

ERICSSON registers plenty of 5G new subscribers

Swedish telecom equipment maker Ericsson said on Monday it will lift its forecast for 5G subscriptions globally to around 2.8 billion by 2025 from 2.6 billion seen previously as a consequence of the novel coronavirus pandemic. The telecoms sector has been among few industries to experience a surge in demand despite the economic uncertainty linked to the pandemic, a result of more people work remotely from home to avoid contagion and adhere to lockdown rules.

Patrik Cerwall, head of strategic marketing at Ericsson, said that the 2020 forecast would also be raised, but gave no further detail. “Long-term we look at 2025, 2.8 billion 5G subscriptions”, he told a web seminar held by the company. Ericsson is competing against Nokia and China’s Huawei Technologies to sign up telecoms customers looking to upgrade their networks to 5G.

The firm, due to publish its biannual Mobility Report next month, said in November 5G uptake was expected to be significantly faster than that of LTE, and that 5G subscriptions would account for 29 percent of all mobile subscriptions in 2025. The new generation of mobile phone technology will bring faster data speeds and better accommodate a greater variety of connected devices.

http://www.reuters.com

OECD updates G20 summit on outlook for global economy

How to absorb growing economic blow

Increasingly stringent containment measures needed to slow the spread of the Coronavirus (Covid-19) will necessarily lead to significant short-term declines in GDP for many major economies, according to new OECD projections.  Efforts to contain virus and save lives should be intensified, and governments should plan stronger, more coordinated measures to absorb growing economic blow.

© OECD graph - The initial impact of containment measures will be felt worldwide

http://www.oecd.org/

Paul Krugman says we are ignoring a ‘huge fiscal time bomb’

Relief is insufficient

The current crisis is not a replay of the Great Recession, according to Krugman, but there will be a second wave that will be if we don’t act forcefully enough now. The Nobel Prize-winning economist says it is important to realize that legislation around coronavirus is not a stimulus bill, it is mostly a disaster relief bill.

He says it is good for the most part but will probably need to be bigger, maybe as large as four or five trillion dollars. He explains that there is a “huge fiscal time bomb” that is not getting enough media coverage. He warns that just as the economy is ready to recover there will be mass layoffs of government employees and a cutoff of unemployment benefits, unless there’s another major round of legislation.
https://www.businessinsider.com/

Dow surges 11% for its best day since 1933 as $2 trillion coronavirus aid package nears approval

Deal on a $2 trillion stimulus bill

The Dow soared on Tuesday to its biggest one-day percentage gain since 1933, after U.S. lawmakers said they were close to a deal for an economic rescue package in response to the coronavirus outbreak, injecting optimism following the biggest selloff since the financial crisis.

All three main U.S. stock indexes rebounded strongly from Monday’s brutal selloff as the coronavirus outbreak forced entire nations to shut down.

Senior Democrats and Republicans said they were close to a deal on a $2 trillion stimulus bill, aimed at providing financial aid to Americans out of work and help for distressed industries.

The expected legislation adds to aggressive action announced by the Federal Reserve in recent days, including purchase of corporate bonds and announcing that the U.S. central bank will make direct loans to companies.