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☆ Intel’s reverse bullwhip is strong
▼ + stars: | 2023-10-27 | by ( ) www.reuters.com time to read: +2 min

The $150 billion chip giant has weathered a post-Covid maelstrom as an initial work-from-home-driven boost to PC sales slammed into reverse, denting sales and the company’s chunky gross profit margin. Growth isn’t back, but results released on Thursday show the decline is slowing and a new division has promise. At least one pandemic bullwhip might be close to having run its course. Reuters GraphicsBetter yet, Intel’s foundry business - Gelsinger’s push to start making chips designed by others - is narrowing its losses while growing revenue and scaling up. Though many customers are signing up on the condition that Intel’s manufacturing tech reaches certain milestones, that unit is its future.

Persons: Pat Gelsinger, Jonathan Guilford, Lauren Silva Laughlin, Sharon Lam Organizations: Reuters, Intel, Taiwan Semiconductor Manufacturing, X, Thomson

☆ Investors reject Sanofi's cure to sickly valuation
▼ + stars: | 2023-10-27 | by ( ) www.reuters.com time to read: +3 min

LONDON, Oct 27 (Reuters Breakingviews) - Sanofi (SASY.PA) investors dislike CEO Paul Hudson’s prescription to reinvigorate the pharmaceutical group’s weak valuation. Analysts polled by LSEG expect the division to hit an EBIT of 1.6 billion euros this year. On listed rival Haleon’s 15.6 times multiple, that business could be worth 25 billion euros. The rest of the Sanofi business may generate EBIT of 11.4 billion euros. The problem is that investors don’t appear to want to take the harsh medicine that leads to a cure.

Persons: Paul Hudson’s, Ernst & Young, Sanofi, EBIT, Roche, Karen Kwok, Francesco Guerrera, Streisand Neto Organizations: Reuters, Sanofi, Ernst, LSEG, Novartis, Novo Nordisk, GSK, AstraZeneca, X, Unilever, Thomson

☆ Influencer model infects US political fundraising
▼ + stars: | 2023-10-27 | by ( Ben Winck | ) www.reuters.com time to read: +4 min

In turn, leaders like former Democratic House Speaker Nancy Pelosi or Republican Speaker Paul Ryan collected tens of millions of dollars to divert to politically valuable campaigns elsewhere in the party. Florida Republican Matt Gaetz has raised nearly $2 million this year, helped by fundraising emails sent in the lead-up to his successful effort to remove Republican Representative Kevin McCarthy as House speaker. Vocal conservatives Marjorie Taylor Greene and Lauren Boebert have raised $2.7 million and $2.4 million, respectively, for their 2024 House campaigns. McCarthy raised 2.9% of House Republicans’ cash in the 2022 elections. Republican Representative Garret Graves criticized Representative Matt Gaetz on Oct. 3 for using his vote to oust House Speaker Kevin McCarthy as a fundraising opportunity.

Persons: Mike Johnson, Nathan Howard, –, Nancy Pelosi, Paul Ryan, Florida Republican Matt Gaetz, Kevin McCarthy, Alexandria Ocasio, Cortez, Marjorie Taylor Greene, Lauren Boebert, McCarthy, John Boehner, Taylor, Garret Graves, Matt Gaetz, Graves gestured, Gaetz, ” Gaetz, Lauren Silva Laughlin, Sharon Lam Organizations: Republican, U.S, Capitol, REUTERS, Rights, Reuters, Representatives, Democratic, Florida Republican, Republicans, U.S . House, Thomson Locations: Washington , U.S, Florida, U.S

☆ The case for a career in bond investing
▼ + stars: | 2023-10-27 | by ( Felix Martin | ) www.reuters.com time to read: +7 min

I sensed familiarity with the recent fate of fixed income benchmarks such as Austria’s hundred-year government bond. For this reason, when bond yields are low, the sensitivity of capital prices to inflation and interest rate shocks is high, and vice versa. The appreciating greenback has been a drag on much of the global fixed income universe for the past decade. The real reason to go into fixed income investing, I explained, is that you get to tell governments what to do. Now that the end of monetary anaesthesia has awoken fixed income from its 15-year coma, I told the MBA students, you’ve got your chance.

Persons: Bonds, That’s, Torsten Slok, GMO’s, Liz Truss, ”, Bill Clinton’s, James Carville, you’ve, Peter Thal Larsen, Streisand Neto, Thomas Shum Organizations: Reuters, Treasury, Reuters Graphics Reuters, Apollo Global Management, U.S ., JPMorgan, Economist, UK, Thomson Locations: U.S, Venezuela

☆ Morgan Stanley CEO shift pleases all, thrills none
▼ + stars: | 2023-10-26 | by ( John Foley | ) www.reuters.com time to read: +4 min

People take photos by the Morgan Stanley building in Times Square in New York City, New York U.S., February 20, 2020. So the crushing conventionality of Morgan Stanley’s (MS.N)new chief executive selection, announced late on Wednesday, is almost certainly the point. The handover should be fairly civil, since the two CEO also-rans, wealth chief Andy Saperstein and investment management head Dan Simkowitz, both get promotions too. Andy Saperstein, previously seen as a contender for the CEO spot, will retain his leadership of Morgan Stanley’s wealth management business. He will also take on its investment management division, which manages and supervises $1.4 trillion of funds.

Persons: Morgan Stanley, Brendan McDermid, Morgan Stanley’s, Ted Pick, James Gorman, He’s, Morgan Stanley lifer, Morgan, Elon Musk, Gorman, Andy Saperstein, Dan Simkowitz, Goldman Sachs, David Solomon, culls, Wells, Jamie Dimon, aren’t, Goldman, Pick, Antony Currie, Thomas Shum Organizations: New York City , New York U.S, REUTERS, Reuters, Twitter, JPMorgan, Reuters Graphics Reuters, Wall, Thomson Locations: New York City , New York

☆ Real big energy: Exxon and Chevron swim upstream: podcast
▼ + stars: | 2023-10-26 | by ( Jonathan Guilford | ) www.reuters.com time to read: 1 min

NEW YORK, Oct 26 (Reuters Breakingviews) - The two US oil titans unveiled acquisitions worth more than $100 bln combined within weeks of each other. In this Viewsroom podcast, Breakingviews columnists discuss what’s powering the renewed consolidation push, as well as the threats posed to the industry by a greener market. Listen to the podcastFollow @JMAGuilford on XSubscribe to Breakingviews’ podcasts, Viewsroom and The Exchange. Editing by Oliver TaslicOur Standards: The Thomson Reuters Trust Principles. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Oliver Taslic Organizations: Reuters, Thomson

☆ New-look Unilever retains its old-style opacity
▼ + stars: | 2023-10-26 | by ( ) www.reuters.com time to read: +2 min

Unilever logo is displayed on Dove soap boxes in this illustration taken on January 17, 2022. Back in 2017 Unilever fought off a Kraft Heinz (KHC.O) takeover approach by pledging a 20% operating margin; now there just isn’t a target. But it leaves a question mark over Unilever’s long-term direction. And it might leave long-term critics like fund manager Terry Smith still griping about opacity. In January Smith complained that Unilever had revealed the price tag on only three of 27 acquisitions in its Beauty and Wellbeing division over eight years.

Persons: Dado Ruvic, Hein Schumacher’s, Kraft Heinz, Alan Jope, Terry Smith, Smith, Schumacher, George Hay, Peter Thal Larsen, Oliver Taslic Organizations: Unilever, REUTERS, Reuters, Kraft, X, Thomson

☆ Ford’s electric drive is going the wrong way
▼ + stars: | 2023-10-26 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Rebecca Cook Acquire Licensing RightsNEW YORK, Oct 26 (Reuters Breakingviews) - Ford Motor (F.N) may have dealt with its labor problem. While the ebb and flow of fossil-fueled fortunes is nothing new, Ford’s electric-car pivot is printing more red ink than ever. But Ford is trying to scale to profitable sales and right now, things are going the wrong way. The company’s electric division recorded a nearly $37,000 operating loss per battery-powered ride sold this quarter, 51% worse than last year. With once sky-high electric prices now free-falling, Ford faces the brass-tacks problem of simply grinding down costs.

Persons: Jim Farley, Rebecca Cook, can’t, nix, Ford, Jonathan Guilford, Lauren Silva Laughlin, Aditya Sriwatsav Organizations: Ford Motor, North American, REUTERS, Reuters, Ford, General Motors, Cox, X, Unilever, Thomson Locations: Detroit , Michigan, U.S, Detroit

☆ Europe’s oil majors are stuck as M&A party-poopers
▼ + stars: | 2023-10-26 | by ( Yawen Chen | ) www.reuters.com time to read: +4 min

Oil pump jack is seen in front of displayed U.S. dollar banknote and decreasing stock graph in this illustration taken, October 8, 2023. REUTERS/Dado Ruvic/Illustration Acquire Licensing RightsLONDON, Oct 26 (Reuters Breakingviews) - Back in June the boss of $220 billion UK oil major Shell (SHEL.L), Wael Sawan, told investors mergers and acquisitions were not his priority. The decision of $430 billion Exxon Mobil (XOM.N) and $295 billion Chevron (CVX.N) to acquire $60 billion Pioneer Natural Resources (PXD.N) and $53 billion Hess (HES.N) respectively ought to change the game. But it would remain a stretch for either to ape their U.S. peers and buy a big oil group. Hess investors will receive 1.025 shares of Chevron for each share held, worth $171 per share based on the closing price on Oct. 20.

Persons: Dado Ruvic, Wael Sawan, Hess, Murray Auchincloss, Patrick Pouyanné, ’, Shell, Neste, Warren Buffett’s, Pouyanné, George Hay, Streisand Neto Organizations: REUTERS, Reuters, Exxon Mobil, Chevron, Natural Resources, Exxon, Shell, Occidental Petroleum, Exxon Mobil’s, Thomson Locations: Finnish, Denmark, U.S, Occidental

☆ Wall Street’s glum rainmakers deserve more love
▼ + stars: | 2023-10-26 | by ( John Foley | ) www.reuters.com time to read: +7 min

Morgan Stanley’s (MS.N) investment banking revenue in the third quarter was its worst since 2009, at just over $1 billion. The rapid rise in interest rates, which makes traditional lending more lucrative for so-called universal banks, adds to the glum aura around investment banking. Reuters Graphics Reuters GraphicsInvestment banking isn’t the biggest part of any bulge-bracket firm’s revenue, but it’s disproportionately profitable. Goldman made nearly $8 billion more from investment banking in 2021 than in the last four quarters. Declining volatility in markets is great for deals, but it’s nowhere near as good for banks’ trading desks, which tend to thrive on choppy conditions.

Persons: Caitlin Ochs, Goldman Sachs, Morgan Stanley’s, Goldman, Morgan Stanley, James Gorman, Jane Fraser, David Solomon, they’re, Peter Thal Larsen, Oliver Taslic Organizations: New York Stock Exchange, REUTERS, Reuters, Exxon Mobil, Chevron, JPMorgan, Citigroup, Reuters Graphics Reuters Graphics Investment, Hamas, Goldman, Bank of America, Barclays, Citi, Thomson Locations: New York City, New York, U.S, catnip, Israel, China

☆ EU’s best way to close its US growth gap: growth
▼ + stars: | 2023-10-26 | by ( ) www.reuters.com time to read: +2 min

BRUSSELS, Oct 26 (Reuters Breakingviews) - The European Union would have a better chance of catching the U.S. if it aimed for growth, instead of rearranging the regulatory deck chairs. Lowering political barriers in the 27-country single market could boost investment without breaking the bank on subsidies, Jean-François van Boxmeer told Breakingviews, citing a new European Round Table for Industry report. In the telecommunications sector, the European Commission has kept four providers in most of the EU’s markets, and screens out Chinese equipment-makers over security concerns. The European Commission reckons completing the single market by 2030 would hike EU GDP by 12%, or 713 billion euros. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: François van Boxmeer, Breakingviews, van Boxmeer, Jacob Wallenberg, Rebecca Christie, George Hay, Streisand Neto Organizations: Reuters, European, Vodafone, Reuters Graphics Business, EU, European Commission, Investor, X, News Corp, Thomson Locations: BRUSSELS

☆ US growth boom tees up year-end bust
▼ + stars: | 2023-10-26 | by ( ) www.reuters.com time to read: +2 min

The latest report on the country's growth is worth celebrating, but not for too long. Household incomes after inflation and taxes fell by $71 billion in the third quarter, according to Pantheon Macroeconomics. That shrank in the third quarter, with managers flagging peak interest rates as a larger concern, leaving less in the pipeline. Yet stores spent $81 billion in excess inventory last quarter and are likely to wait to restock shelves. Last quarter’s boom should give way to a bust.

Persons: Lee Jae, LSEG, Ben Winck, Lauren Silva Laughlin, Sharon Lam Organizations: Rights, Reuters, Macroeconomics, Savings, Companies, X, Unilever, Thomson Locations: U.S

☆ Amazon's grey cloud is the new blue sky
▼ + stars: | 2023-10-26 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Mike Blake Acquire Licensing RightsNEW YORK, Oct 26 (Reuters Breakingviews) - Amazon.com’s (AMZN.O) cloud business is offering a small sliver of light. The performance matches last quarter’s growth and is in-line with what analysts were expecting, according to LSEG. Alphabet, in its earnings on Tuesday, said its similar unit’s growth rate slowed. Shares in the company led by Sundar Pichai declined by a tenth in two days. It’s not exactly a cloudless sky - AWS growth is slowing relative to last year, and its growth rate is still 10 percentage points below Alphabet’s.

Persons: Andy Jassy, Mike Blake, Sundar Pichai, It’s, Jennifer Saba, Lauren Silva Laughlin, Sharon Lam Organizations: Amazon Web Services, REUTERS, Reuters, North, X, Unilever, Thomson Locations: Laguna Beach , California, U.S, It’s

☆ China puts $137 bln Band-Aid on local debt wounds
▼ + stars: | 2023-10-25 | by ( Chan Ka Sing | ) www.reuters.com time to read: +3 min

The funds are to be funnelled to cash-strapped local governments struggling under 92 trillion yuan ($12.6 trillion) of debt. The last time was for a 1 trillion yuan special bond issuance in 2020 to combat the economic fallout from Covid-19. All these plans stem from the ruling Politburo in July calling on regulators to formulate “a basket of measures” to resolve risks stemming from local governments’ debt. CONTEXT NEWSChina’s top legislature approved a plan on Oct. 24 to sell 1 trillion yuan ($137 billion) of sovereign bonds. Separately, the Chinese legislature passed a bill to allow local governments to frontload part of their 2024 bond quotas.

Persons: Xi Jinping, Xi Jinping’s, Antony Currie, Thomas Shum Organizations: of, People, REUTERS Acquire, Reuters, Monetary, Thomson Locations: Beijing, China, HONG KONG, Covid

☆ Russian war economy is overheating on a powder keg
▼ + stars: | 2023-10-25 | by ( Pierre Briancon | ) www.reuters.com time to read: +8 min

LONDON, Oct 25 (Reuters Breakingviews) - His war on Ukraine may not be unfolding according to plan, but President Vladimir Putin can still claim that the Russian economy is performing, as he says, “better than previously expected”. This kind of understatement is unusual for the Kremlin leader: with a tight labour market and inflation showing no signs of abating, the Russian economy is in fact overheating. And these are conservative numbers, because other types of war spending – such as new construction in the occupied territories – are hidden in other sections of the budget. The Russian currency is down 30% since its January high. Follow @pierrebri on XCONTEXT NEWSThe Russian economy will grow by 2.2% in 2023, the International Monetary Fund said in its October World Economic Outlook.

Persons: Vladimir Putin, “, Putin, Alexandra Prokopenko, Yevgeny Prigozhin, Wagner, Francesco Guerrera, Streisand Neto, Thomas Shum Organizations: Reuters, Kremlin, International Monetary, Bank of Russia, Reuters Graphics Reuters, Bank of, Danone, Carlsberg, International Monetary Fund, Thomson Locations: Ukraine, Russian, Russia, –, Moscow, Europe, Lithuania, microchips, Kazakhstan, Bank of Russia, United States, China, U.S, Beijing

☆ If Amazon, why not Walmart?
▼ + stars: | 2023-10-25 | by ( Jennifer Saba | ) www.reuters.com time to read: +3 min

Shopping habits vary widely, however, and the company’s pricing strategies are commonly used, including at Walmart (WMT.N). According to the complaint, if Amazon finds a cheaper product elsewhere, it punishes the seller by removing merchandise from the “buy box,” effectively tanking sales. Thus, the argument goes, Amazon prevents rivals from competing on price. Walmart, which bought Jet.com in 2016 for $3 billion, is also just as discerning when it comes to online pricing. The agency accuses Amazon of stifling competition on price, product selection and quality, and preventing rivals from attracting a critical mass of shoppers and sellers.

Persons: Lina Khan, Andy Jassy, Walton, Jeffrey Goldfarb, Aditya Sriwatsav Organizations: Reuters, U.S . Federal Trade Commission, Walmart, Amazon, FTC, eBay, Amazon.com, Thomson Locations: United States

☆ How to spur investments in greener power grids: podcast
▼ + stars: | 2023-10-24 | by ( Lisa Jucca | ) www.reuters.com time to read: 1 min

TRENTO, Italy, Oct 24 (Reuters Breakingviews) - Electricity networks need to be upgraded and adapted to a carbon-free world. With returns uncertain, attracting cash is not easy, Secure Meters CEO Suket Singhal argues in this Exchange podcast. Listen to the podcastFollow @LJucca on XSubscribe to Breakingviews’ podcasts, Viewsroom and The Exchange. Editing by Oliver TaslicOur Standards: The Thomson Reuters Trust Principles. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Suket Singhal, Oliver Taslic Organizations: Reuters, Thomson Locations: TRENTO, Italy

☆ Foxconn’s China woes expose supply chain dilemma
▼ + stars: | 2023-10-24 | by ( Chan Ka Sing | ) www.reuters.com time to read: +4 min

Yet, coming less than 100 days ahead of Taiwan’s presidential election in January, it is difficult to see surprise tax raids on Foxconn as having no geopolitical implications. For multinationals, the tax audits expose Foxconn’s difficulty in navigating the global business environment as tensions across the Taiwan Strait escalate. For global onlookers anxious to reduce their Chinese dependency, Foxconn could be the most telling case on the true cost of reshoring. The audits come less than three months ahead of Taiwan’s presidential election in January 2024 and amid Foxconn’s drive to expand its production outside China. Foxconn’s founder Terry Gou, who stepped down as company chief in 2019, is running as an independent candidate in Taiwan’s upcoming presidential election.

Persons: Foxconn, Terry Gou, It’s, Foxconn’s, Lisa Jucca, Thomas Shum, Katrina Hamlin Organizations: Reuters, Apple, Hai Precision Industry, Global Times, Eastern, Democratic Progressive Party, Foxconn, Thomson Locations: HONG KONG, China, Taiwan, Foxconn, Beijing, Vietnam, Republic, Shanghai, Taipei

☆ Time is ripe for another push on carbon pricing
▼ + stars: | 2023-10-24 | by ( Hugo Dixon | ) www.reuters.com time to read: +8 min

Other technologies, such as green hydrogen and carbon capture, are still a long way from maturity. Around 50 countries have some form of carbon price, double the number 10 years ago, and another 23 countries are planning to introduce one. The snag is that China’s carbon price is low and the United States doesn’t have a federal levy. Others argue that governments should combine carbon pricing with financial support for the most vulnerable and targeted subsidies for fledgling technologies. To hit climate targets, the carbon price would need to be $135 a tonne in advanced economies and $45 a tonne in large emerging ones by 2030.

Persons: Jin Mao, Aly, Joe Biden’s, There’s, Rishi Sunak, Michael Jacobs, it’s, Peter Thal Larsen, Oliver Taslic, Thomas Shum Organizations: Financial, REUTERS, Reuters, International Energy Agency, European Union, Global, International Monetary Fund, Reuters Graphics Reuters, British, Pew Research, University of Sheffield, IMF, Africa Climate, United, European, Climate Leadership Council, Thomson Locations: Shanghai, Pudong, China, United States, Paris, Africa, European Union, U.S

☆ GM earnings give its restive workers an inch
▼ + stars: | 2023-10-24 | by ( Jonathan Guilford | ) www.reuters.com time to read: +4 min

On Tuesday, GM reported strong earnings that will embolden staff who have walked out at all three of the big Detroit firms. GM beat analysts’ expectations for third-quarter profit despite a $200 million hit from the strikes that started in September. That said, the firm run by Mary Barra also ditched its official forecast as it wrestles with the $200 million weekly costs from labor disruptions. Fortunately for GM, talks with its union seem to have narrowed in from earlier demands that would have vaporized the industry’s operating profit. Ongoing strikes by the United Auto Workers union, which represents GM employees, cost the company $200 million in the third quarter.

Persons: walkouts, Mary Barra, Shawn Fain, Tesla, Elon, Fain, John Foley, Sharon Lam Organizations: General Motors Company, Reuters, United Auto Workers, General Motors, Ford Motor, GM, Cox Automotive, UAW, Elon Musk’s, United Auto Workers union, Detroit, Thomson Locations: Queens , New York, U.S, Detroit, Wells, GM’s Arlington

☆ Roche's $7 bln deal is pricey and partial cure
▼ + stars: | 2023-10-23 | by ( ) www.reuters.com time to read: +2 min

Roche tablets are seen positioned in front of a displayed Roche logo in this photo illustration shot January 22, 2016. REUTERS/Dado Ruvic/Illustration Acquire Licensing RightsNEW YORK, Oct 23 (Reuters Breakingviews) - Roche (ROG.S) has taken a small step towards curing its drug pipeline problem. JPMorgan analysts estimate that the drug’s U.S. sales could peak at 2.4 billion Swiss francs ($2.7 billion), but will take until 2037 to get there, assuming a 2028 launch. Analysts expect Roche’s pharmaceutical division to generate revenue of almost 45 billion Swiss francs this year, according to estimates compiled by LSEG. With expected free cash flow of around 16 billion Swiss francs this year and next, Roche can afford to buy a little more diversification.

Persons: Roche, Dado Ruvic, Thomas Schinecker, Peter Thal Larsen, Jean, Pierre Mustier, Atos, Jonathan Guilford, Aditya Sriwatsav Organizations: REUTERS, Reuters, Pfizer, U.S, New, JPMorgan, Merck, Prometheus Biosciences, Analysts, LSEG, X, News Corp, Thomson Locations: Swiss, U.S

☆ Chevron’s $53 billion deal is risky Exxon copycat
▼ + stars: | 2023-10-23 | by ( Robert Cyran | ) www.reuters.com time to read: +4 min

The $318 billion oil giant said Monday it would buy New York-based Hess (HES.N) for $53 billion in an all-stock deal. The main appeal for Chevron is Hess’s 30% stake in a consortium producing oil offshore in Guyana. Importantly, Chevron is catching up to Exxon, which runs and owns 45% of the same Guyana consortium. Higher production in Guyana after 2024 will increase Chevron’s returns, assuming the price of oil remains favorable. Hess owns a 30% share in a consortium in Guyana alongside Exxon, which owns a 45% interest, and Chinese oil company CNOOC, which owns the remaining 25%.

Persons: Hess, It’s, Mike Wirth, Scott Sheffield, John Hess, Hess’s, Lauren Silva Laughlin, Aditya Sriwatsav Organizations: Reuters, Chevron, Exxon Mobil, New York Stock Exchange, Natural Resources, drillers, Brent, Exxon, Pioneer, Exxon Mobil’s, Thomson Locations: New York, Texas, Guyana, Gulf of Mexico

☆ West’s latest China corporate risk: medical graft
▼ + stars: | 2023-10-23 | by ( Karen Kwok | ) www.reuters.com time to read: +4 min

An employee wearing a face mask is seen at a workshop of computed tomography (CT) scanners of medical device firm Siemens Healthineers in Shanghai, China, February 24, 2020. REUTERS/Aly Song Acquire Licensing RightsLONDON, Oct 23 (Reuters Breakingviews) - China corporate risk has spread to Western medical device companies. According to BMI analysts, about two-thirds of Chinese medical devices used by local hospitals and clinics are imported from Western groups. That implies a direct hit to the order and revenue growth for medical device firms. Domestic brands, which have historically lagged in the advanced end of the medical device market, took the whole of last decade just to hike their share from around 20% to 30%, Deloitte says.

Persons: Aly, Philips, George Hay, Oliver Taslic Organizations: Siemens, REUTERS, Reuters, Volkswagen, Philips, GE Healthcare, BMI, National Health Commission, Siemens Healthineers, Reuters Graphics Reuters, Deloitte, GE, Healthineers, Thomson Locations: Shanghai, China, People’s Republic, Beijing, United States

☆ China’s leaders speed towards Japanisation
▼ + stars: | 2023-10-20 | by ( Edward Chancellor | ) www.reuters.com time to read: +8 min

LONDON, Oct 20 (Reuters Breakingviews) - China’s real estate market is in decline. The trouble is that China’s economic imbalances are far worse than Japan’s in 1990. Yet China’s GDP per capita has reached only half of Japan’s level in 1990. China’s economic misdirection is catalogued in Yasheng Huang’s “The Rise and Fall of the East”. After 1978 the authorities gave provincial governments substantial freedom to promote economic growth and rewarded them for meeting a growth target.

Persons: Xi, Xi Jinping, Huang, –, Xi’s, Beijing’s, Peter Thal Larsen, Oliver Taslic, Thomas Shum Organizations: Reuters, Monetary Fund, South, Asian, IMF, Reuters Graphics Reuters, Bank for International, MIT Sloan School of Management, HK, Communist, Huawei, Washington, Thomson Locations: Marrakech, People’s Republic, China, South Korea, Japan, deflate, Tokyo, California, Beijing, Taiwan, Communist

☆ China’s graphite curbs send green warning shot
▼ + stars: | 2023-10-20 | by ( Lisa Jucca | ) www.reuters.com time to read: +3 min

Global demand for graphite, seen at 770,000 tonnes this year, is expected to treble by 2033, according to estimates by Fastmarkets graphite analyst Georgi Georgiev. China currently accounts for 64% of the global production of natural graphite and more than half of the artificial equivalent. More importantly, the People’s Republic refines more than 90% of the graphite into high-purity material used in EV batteries. This echoes the approach China used earlier this year to restrict exports of gallium and germanium, two metals used in chips and fibre optic cables, triggering a fall in international shipments. Mining graphite in Europe, which wants to lead in EV adoption, is simply more expensive, says Aiden Lavelle, CEO of miner European Green Metals.

Persons: Georgi Georgiev, Aiden Lavelle, Carmakers, Una Galani, Streisand Neto Organizations: Reuters, People’s, EV, Shanghai Putailai, Energy Technology, Metals, Volkswagen, Thomson Locations: HONG KONG, China, Republic, Shanghai, Finland, Sweden, Beijing, Western, Europe, U.S

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