DIRS.INFO The most relevant business & tech news

☆ Apple supplier Foxconn pushed China to ease COVID curbs - WSJ
▼ + stars: | 2022-12-08 | by ( ) www.reuters.com time to read: +1 min

Dec 8 (Reuters) - Apple supplier Foxconn's (2317.TW) founder-director Terry Gou had warned China that the government's zero-COVID stance would threaten the position of the world's second-largest economy in the global supply chain, the Wall Street Journal reported. The Taiwan-based company's Zhengzhou plant, which saw a month-long unrest in November, has lifted its "closed-loop" management curbs on Thursday. The Zhengzhou plant had been grappling with strict COVID restrictions that fuelled discontent among workers over factory conditions, triggering an 11.4% year-on-year drop in November revenue. Some Wall Street analysts cut their iPhone shipment targets for the all-important holiday quarter as a result of turmoil at the major iPhone factory. Reporting by Chavi Mehta in Bengaluru; Additional reporting by Sarah Wu; Editing by Sherry Jacob-PhillipsOur Standards: The Thomson Reuters Trust Principles.

☆ Apple is ready to leave China as COVID-19 protests delay iPhones past Christmas. That could take a decade and cost billions.
▼ + stars: | 2022-12-07 | by ( Emilia David | ) www.businessinsider.com time to read: +6 min

China's "zero COVID" policy has hit Apple's supply chain, causing delays on iPhone production. But any shift out of China won't be quick, with over 35% of the factories supplying Apple located in China. Some estimates say it will take until the end of the decade to move 10% of Apple's iPhone manufacturing out of the country. There are 28 Apple suppliers in Vietnam, or 3.8% of the total listed by Apple. Onshoring iPhone production?

☆ Jim Cramer's top 10 things to watch in the market Wednesday: China reopening fails to inspire
▼ + stars: | 2022-12-07 | by ( Jim Cramer | ) www.cnbc.com time to read: +4 min

Two out of the Club's three stocks tied closely to China — Starbucks (SBUX) and Wynn Resorts (WYNN) — are down. Barclays piles on and cuts every price target for oil companies. RBC Capital raises price target on Nike (NKE) to $120 per share from $115; keeps outperform (buy) rating. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.

☆ Factbox: China's rigid zero-COVID-19 policy starts to thaw
▼ + stars: | 2022-12-07 | by ( ) www.reuters.com time to read: +4 min

Beijing has not officially said it is ending its zero-COVID policy, but the adjustments are the clearest sign yet China is quickly pivoting away from that policy and towards letting its people live with the disease. Health officials are still warning that trends in fatalities will be closely watched in case a return to tougher measures is needed. Over the past few weeks, authorities have made varying policy changes in cities such as Guangzhou and Beijing, despite recent record infections. With jubilation, especially in big cities, frustrated by the inconvenience, uncertainty, economic toll and travel hurdles that came with zero-COVID. Also, time will tell with the winter flu season and the annual session of parliament that usually starts on March 5.

☆ Morgan Stanley cuts iPhone shipment estimate by another 3 million units
▼ + stars: | 2022-12-07 | by ( Ashley Capoot | ) www.cnbc.com time to read: +2 min

Morgan Stanley reduced its Apple iPhone shipment forecast for the December quarter by an additional 3 million units on Wednesday to account for slower production in China. The firm had already cut shipment expectations by 6 million units in November. Morgan Stanley now expects Apple to ship around 75.5 million units, down from its original forecast of 85 million units. Last month, factory employees clashed with security personnel at the Zhengzhou plant in China, the world's largest iPhone factory run by Apple's assembly partner Foxconn. Morgan Stanley analysts said the unrest will impact what is historically Apple's biggest quarter, which is often bolstered by the holiday shopping season.

☆ China's trade shrinks sharply as feeble demand, domestic COVID woes take toll
▼ + stars: | 2022-12-07 | by ( ) www.reuters.com time to read: +4 min

"Of much greater consequence will be the downturn in global demand for Chinese goods due to the reversal in pandemic-era demand and the coming global recession." Inbound shipments were down sharply by 10.6% from a 0.7% drop in October, weaker than a forecast 6.0% decline. But analysts remain sceptical the steps could achieve quick results, as Beijing has not announced a full reopening from COVID containment yet. China's economy grew just 3% in the first three quarters of this year, well below the annual target of around 5.5%. "As global demand weakens in 2023, China will have to rely more on domestic demand," he said.

☆ Tim Cook’s Bad Day on China
▼ + stars: | 2022-12-06 | by ( William Mcgurn | ) www.wsj.com time to read: 1 min

Apple CEO Tim Cook has been taking a beating over his company’s coziness with Beijing. It comes amid protests across China against the government’s strict Covid-19 lockdowns, including at a factory in Zhengzhou where most of the world’s iPhones are made. Hillary Vaughn of Fox News perfectly captured Mr. Cook’s embarrassment on Capitol Hill Thursday when she peppered him with questions:“Do you support the Chinese people’s right to protest? Do you have any reaction to the factory workers that were beaten and detained for protesting Covid lockdowns? Do you think it’s problematic to do business with the Communist Chinese Party when they suppress human rights?”

☆ Premarket stocks: The last time the US faced a debt fight this bad it lost its AAA rating
▼ + stars: | 2022-12-06 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

In a note on Monday, Goldman Sachs analysts warned that the upcoming debt limit battle in Washington could spark the most uncertainty since the disruptive 2011 debates that cost America its perfect AAA credit score and caused chaos on Wall Street. “To raise the debt limit next year, bipartisan support will be necessary but hard to achieve,” Goldman Sachs economists wrote in the report. Goldman Sachs analysts wrote that the political environment has “echoes of 1995 and 2011” — two very tense standoffs over the debt limit that hurt Main Street and Wall Street. Pain ahead: “It seems likely that uncertainty over the debt limit in 2023 could lead to substantial volatility in financial markets,” wrote Goldman analysts. “A failure to make timely payments would likely hit consumer confidence hard,” Goldman Sachs wrote.

☆ As China moves away from zero-Covid, health experts warn of dark days ahead
▼ + stars: | 2022-12-06 | by ( Simone Mccarthy | ) edition.cnn.com time to read: +10 min

Across the country, however, some parts of residential communities and buildings designated high risk by authorities are still locked down. A QR code for Covid-19 contact tracing displayed at the entrance to a subway station in Shanghai, China, on Monday. Top health officials on November 28 announced a new plan to bolster elderly vaccination rates, but such measures will take time, as will other preparations for a surge. Minimizing the worst outcomes in a transition out of zero-Covid depends on that preparation, according to Cowling. From that perspective, he said, “it doesn’t look like it would be a good time to relax the policies.”

☆ China's Covid lockdowns are having a lessening impact on its economy
▼ + stars: | 2022-12-06 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +1 min

BEIJING — China's Covid lockdowns are having a lessening impact on the economy for the first time since early October, according to Nomura. Evelyn's lead: The negative impact of China's Covid controls on GDP has dropped for the first time since early October, according to a Nomura model. As of Monday, the negative impact of China's Covid controls on its economy fell to 19.3% of China's total GDP — down from 25.1% a week ago, Nomura's Chief China Economist Ting Lu and a team said in a report. Last week's 25.1% figure was higher than that seen during the two-month Shanghai lockdown in the spring, according to Nomura's model. In the last several days, local governments have relaxed some virus testing requirements, allowing people in cities such as Beijing and Zhengzhou to take public transportation without having to show proof of a negative test result.

☆ Foxconn’s November Revenue Fell 11% After Covid Outbreak at iPhone Factory
▼ + stars: | 2022-12-05 | by ( Kosaku Narioka | ) www.wsj.com time to read: 1 min

Foxconn said in its monthly revenue report that the Covid situation is under control and it is moving toward restoring normal production capacity. Foxconn Technology Group ‘s November revenue dropped 11% from a year earlier after shipments from Zhengzhou, China, the world’s biggest iPhone assembly site, were affected by a Covid-19 outbreak, the company said Monday. Foxconn’s November revenue fell to 551.1 billion new Taiwan dollars, equivalent to $18 billion, from NT$621.7 billion a year earlier, the company said.

☆ Morning Bid: China reopening as volatility ebbs
▼ + stars: | 2022-12-05 | by ( ) www.reuters.com time to read: +4 min

What's more, Wall Street's 'fear index' is showing little if any trepidation about the final month of the year. Even though it backed up a bit today, the VIX index of implied S&P500 volatility (.VIX) closed at its lowest in 8 months on Friday. Morgan Stanley updated its China equity recommendation to overweight, citing "multiple positive developments alongside a clear path set towards reopening." China's yuan , surged past 7 to the dollar in onshore and offshore markets - its best levels in almost three months. The China re-opening optimism buoyed the oil price even as OPEC+ nations at the weekend held their targets steady despite last week's market speculation of another output cut.

☆ Foxconn expects full production at COVID-hit China plant late December to early January -source
▼ + stars: | 2022-12-05 | by ( ) www.reuters.com time to read: 1 min

TAIPEI, Dec 5 (Reuters) - Apple supplier Foxconn (2317.TW) expects to see full production resume at a COVID-hit China plant around late December to early January, a source with direct knowledge told Reuters on Monday, after unrest at a major iPhone factory in China's Zhengzhou. Foxconn and the local government are working hard on the plant's recruitment drive but many uncertainties remain, the source said. The largest factory making Apple's iPhone has been grappling with strict COVID-19 restrictions that have fuelled discontent among workers and disrupted production ahead of Christmas and January's Lunar New Year holiday, as many workers were either put into isolation or fled the plant. Foxconn declined to comment. Reporting By Yimou Lee; Editing by Tom HogueOur Standards: The Thomson Reuters Trust Principles.

☆ Foxconn expects Covid-hit China plant to resume full production around year-end, source says
▼ + stars: | 2022-12-05 | by ( ) www.cnbc.com time to read: +1 min

Apple supplier Foxconn expects its Covid-hit Zhengzhou plant in China to resume full production around late December to early January, a Foxconn source said on Monday, after worker unrest disrupted the world's biggest iPhone factory. The Zhengzhou plant has been grappling with strict Covid-19 restrictions that have fueled discontent among workers over conditions at the factory. Production of the Apple device was disrupted ahead of Christmas and January's Lunar New Year holidays, with many workers either having to isolate to combat the spread of the virus or fleeing the plant. "The capacity is now being gradually resumed" with new staff hiring under way, said the person with direct knowledge of the matter. "If the recruitment goes smoothly, it could take around three to four weeks to resume full production," the person said, pointing to a period around late December to early January.

☆ iPhone maker Foxconn reports slump in revenue after unrest and Covid outbreak at key China plant
▼ + stars: | 2022-12-05 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +2 min

Foxconn workers at Taiwanese firm's Zhengzhou, China factory, walked out over a pay dispute with the company. The Zhengzhou factory is estimated to account for more than 70% of Apple's global assembly of iPhones. Foxconn, the world's largest contract electronics maker, on Monday reported a sharp drop in November revenue after the company struggled with a Covid outbreak and worker unrest at the world's biggest iPhone factory in China. In a bid to entice workers back to the factory, Foxconn announced a round of bonuses last month. Investors will now be watching for any impact on Apple , given its reliance on the Zhengezhou factory for global iPhone production.

☆ China's trade likely shrank further in Nov as external, local demand weakened
▼ + stars: | 2022-12-05 | by ( ) www.reuters.com time to read: +3 min

SummarySummary Companies Trade data due on Wednesday, Dec 7BEIJING, Dec 5 (Reuters) - China's exports and imports likely contracted further in November due to weakening global demand, production disruptions and waning demand at home amid widespread pandemic controls, a Reuters poll showed on Monday. COVID outbreaks in November in manufacturing hubs, such as Zhengzhou and Guangzhou, likely also disrupted production and weighed on exports. Due to a high year-earlier base for comparison and sluggish domestic demand, economists estimated November imports had been down 6.0%. The median estimate in the poll indicated a narrower trade surplus of $78.1 billion, compared with $85.15 billion in October. Beijing has introduced a vaccination campaign for the elderly, and some local governments are relaxing lockdowns, quarantine rules and testing requirements.

☆ Morgan Stanley upgrades China stocks as global investors cheer on Covid reopening hopes
▼ + stars: | 2022-12-05 | by ( Laura He | ) edition.cnn.com time to read: +5 min

Hong Kong CNN Business —Global traders are increasingly feeling more bullish on China, as they bet the country will gradually unwind Covid restrictions following widespread protests. Starting Monday, Shanghai residents will no longer require a negative Covid test result to enter outdoor venues including parks and scenic attractions. “Multiple positive developments alongside a clear path set towards reopening warrant an upgrade and index target increases for China,” its analysts said in a research note on Monday. MSCI China, an index tracking major Chinese stocks available to global investors, will hit the 70 level by the end of 2023, according to Morgan Stanley. The offshore yuan, a key gauge of how international investors think about China, strengthened sharply against the US dollar on Monday.

☆ Foxconn restoring production at world's largest iPhone factory
▼ + stars: | 2022-12-05 | by ( Juliana Liu | ) edition.cnn.com time to read: +2 min

The “epidemic situation” at the facility, known as iPhone City and normally home to hundreds of thousands of workers, has been brought under control, the Taiwanese contract manufacturer said in a statement on Monday. Its executives were quoted as telling Reuters that full production would resume between late December and early January. Analysts said the production woes at iPhone City would speed up the pace of Apple’s supply chain diversification away from China. In recent weeks, according to The Wall Street Journal, Apple (AAPL) has accelerated plans to shift some of its production outside China. If Apple moves aggressively, more than 50% of iPhone production could come from India and Vietnam by the 2025/2026 fiscal year, versus the single-digit percentage currently, he added.

☆ Friendshoring makes sense if done in the right way
▼ + stars: | 2022-12-05 | by ( Hugo Dixon | ) www.reuters.com time to read: +7 min

These examples explain the enthusiasm for “friendshoring”, an idea U.S. Treasury Secretary Janet Yellen is pushing. First, it could provoke an all-out trade war – causing the kinds of disruptions that friendshoring is intended to prevent. Things would be different if China was the West’s implacable enemy in the way that Putin’s Russia is. Using friendshoring in a defensive rather than aggressive way means focusing on strategic products. While it makes sense to cut its dependency on China, that doesn’t mean going all the way to zero.

☆ Global investors cheer on China reopening hopes
▼ + stars: | 2022-12-05 | by ( Laura He | ) edition.cnn.com time to read: +5 min

☆ Apple Makes Plans to Move Production Out of China
▼ + stars: | 2022-12-03 | by ( Yang Jie | Aaron Tilley | ) www.wsj.com time to read: 1 min

In recent weeks, Apple Inc. has accelerated plans to shift some of its production outside China, long the dominant country in the supply chain that built the world’s most valuable company, say people involved in the discussions. It is telling suppliers to plan more actively for assembling Apple products elsewhere in Asia, particularly India and Vietnam, they say, and looking to reduce dependence on Taiwanese assemblers led by Foxconn Technology Group. Turmoil at a place called iPhone City helped propel Apple’s shift. At the giant city-within-a-city in Zhengzhou, China, as many as 300,000 workers work at a factory run by Foxconn to make iPhones and other Apple products. At one point, it alone made about 85% of the Pro lineup of iPhones, according to market-research firm Counterpoint Research.

☆ Apple is accelerating plans to move production out of China as protests and riots intensify in response to zero-Covid policies, report says
▼ + stars: | 2022-12-03 | by ( Bethany Biron | ) www.businessinsider.com time to read: +3 min

Apple is increasing its efforts to shift production outside of China, according to the Wall Street Journal. Production at factories like Foxconn has taken a massive hit amid riots over zero-Covid policies. Shifting production will likely be difficult in the current global economic climate, sources told WSJ. In November, the area known as "iPhone City" erupted into violent protests among employees over withheld pay and strict zero-Covid policies that prompted a lockdown in Zhengzhou. The protests, which coincided with the start of the holiday shopping season in the US, have led to significant supply chain issues and shortages of Apple iPhone products.

☆ Inside China's fight over the future of zero-COVID
▼ + stars: | 2022-12-02 | by ( David Stanway | ) www.reuters.com time to read: +10 min

After nearly three years, a significant loosening of zero-COVID measures has been signalled by senior government officials and public health experts. Vice Premier Sun Chunlan said on Thursday that China's health system had "withstood the test" of COVID, allowing further adjustments to state policies. "You can have zero-COVID, but you can't have a healthy economy, and you can have a healthy economy, but you can't have zero-COVID." Laura Yasaitis, a public health expert at the Eurasia Group think-tank who follows China's zero-COVID policies, said fear of the virus likely varied widely across the country, as well as within cities or provinces. Officials have repeatedly said that China's health system would be unable to cope with a surge in cases, with medical resources unevenly distributed across the country.

HONG KONG — Chinese authorities are moving to ease strict “zero-Covid” controls, in an apparent response to a nationwide wave of protests that have otherwise been suppressed. Police form a cordon in Beijing on Monday during a protest against China’s strict “zero-Covid” measures. Kevin Frayer / Getty ImagesChinese authorities have mostly stamped out the protests, with heavy police presence at protesters’ former gathering sites. Like other Chinese leaders, Jiang showed little tolerance for dissent, jailing activists and banning the Falun Gong religious movement. But the political environment has greatly tightened under Xi, leading some people in China to reassess Jiang’s legacy.

HONG KONG, Dec 1 (Reuters Breakingviews) - Covid-19 lockdowns and protests across China have highlighted the risks of the mutual dependence between Taiwan's Foxconn and its top customer Apple (AAPL.O). It makes 70% of the world’s iPhones, according to Fubon Research. Meanwhile Apple’s huge investments into Foxconn have paid off: the U.S. company is the most profitable smartphone maker by far. Foxconn has been scrambling to contain the fallout, offering bonuses to temporary workers and shifting production to other facilities. At the time, Foxconn said it was bringing the situation under control and was coordinating with other plants to increase production.

Search resuls for: "ZHENGZHOU"

25 mentions found