Latest News

See the latest news and get GPT analysis of articles

End of Nigerian fuel subsidy set to squeeze Europe's refiners 2023-07-28 - Summary W. Africa historically major market for European petrol Gasoline flows redirected after fuel subsidy scrapped Some Mideast, Russian flows move to WAF, but still small LONDON, July 28 (Reuters) - One of Europe's main markets for gasoline has shrunk, threatening to squeeze European refiners, after Nigeria removed fuel subsidies, which destroyed much of the country's domestic demand and a regional market for smuggled fuel. North America and West Africa (WAF), with Nigeria at the helm, historically have been the top two destinations for petrol exports from Europe, which produces more gasoline than it uses, meaning its refiners rely on exports to support profit margins. Reuters Graphics A steady decline in European refining margins in recent years, as competition from the Middle East, the United States and Asia grew, was reversed when fears of fuel supply shortages boosted profits after Russia's invasion of Ukraine. So far, benchmark profit margins for gasoline in northwestern Europe have held firm at around $27 a barrel, Refinitiv Eikon data shows. They have been supported by demand from North America, a shortage of high quality blending materials, disruption caused by low water levels inland and local refinery outages. But analysts say the reduction of flows following the upheaval in Nigeria will increase pressure on European refiners, and any winners are likely to be newer Middle Eastern refineries. At the end of May, Nigeria's President Bola Tinubu scrapped a popular but expensive subsidy on the fuel, which cost the cash-strapped government $10 billion last year. Petrol demand in response fell by 28%, official data showed. Symptomatic of the fall in demand, onshore gasoline stocks in Nigeria have climbed to 960,000 tonnes from an average 613,000 tonnes between January and June, said Jeremy Parker at the CITAC consultancy which focuses on Africa's downstream energy market. Meanwhile, the black market for smuggled subsidised Nigerian fuel in Togo and neighbouring Benin and Cameroon has collapsed, further reducing demand for shipments via Nigeria. There is no reliable data on how much fuel was smuggled out of Nigeria under the subsidy regime, but a comparison of estimates from official and independent sources indicate more than a third of petrol could have left state oil firm NNPC's depots every day to be sold illegally abroad. Without the subsidy, the financial incentive for smuggling disappears. Average monthly West African (WAF) gasoline imports fell by 56% in the second quarter compared with the first, according to Refinitiv Eikon data. "The key point is demand from West Africa is drying up," said Refinitiv Lead Oil Analyst Raj Rajendran. Seasonally, June loadings from the Amsterdam-Rotterdam-Antwerp (ARA) hub to West Africa fell to 629,000 tonnes this year from 895,000 tonnes last year and 1.2 million tonnes in 2021, Refinitiv data showed. Loadings dropped to 627,000 tonnes in July so far this year from 1.5 million tonnes last year and 1.4 million tonnes at the same time in 2021. By contrast ARA exports to the United States rose to reach 695,000 tonnes so far this year in July, compared with 449,000 tonnes last year, although they were down from 791,000 tonnes in 2021. Reuters Graphics Gasoline stockpiles in the ARA hub are higher seasonally than they have been at least since 2003, according to Insights Global data, as U.S. exports from the region did not fully compensate for the lower WAF exports. Nigeria, Africa's largest crude oil producer, relies heavily on imports because of its inadequate domestic refining capacity. Imports, however, are increasingly unaffordable as Nigeria's naira has weakened to record lows since the central bank removed currency restrictions in June. At the same time, inflation is near two-decade highs. The huge, much-delayed Dangote refinery was designed to address the domestic supply shortfall, but full 650,000 barrel per day production is unlikely before the second quarter of 2025, CITAC estimates. Analysts said it was possible demand would not fully recover. "Demand for barrels into WAF may be lower at the moment as the market sorts itself out again post-subsidies. There may simply be a baseline decrease in demand," said Sparta Commodities gasoline market analyst Philip Jones-Lux. For alternative supplies that are cheaper and therefore more palatable for Nigerian buyers, Jones-Lux points to imports from the Mideast Gulf and Russia. "The volumes appear small still, but not insignificant," he said. Sparta estimates that fuel from the Mideast Gulf is around $35-$50 per tonne cheaper than ARA imports, around triple last week's spread, which could mean increased volumes into West Africa of Middle Eastern fuel. An increase in direct Russian gasoline flows into West Africa started in January, but cumulative volumes, while growing from virtually non-existent in recent years to around 800,000 tonnes year-to-date, are still small, according to Refinitiv Eikon data. "It’s not like (Russia is) capturing a bigger share of that market from European refiners. The challenge is coming from the new refineries in the Middle East that are expanding from their traditional East Africa market to now include West Africa and beyond even to the Americas," Rajendran said. Reporting by Shadia Nasralla; editing by Barbara Lewis Our Standards: The Thomson Reuters Trust Principles.

Marketmind: Bank of Japan sets the stage for higher yields 2023-07-28 - A look at the day ahead in European and global markets from Vidya Ranganathan FILE PHOTO: A Japanese flag flutters on the Bank of Japan building in Tokyo, Japan, March 15, 2016. REUTERS/Toru Hanai/File Photo The Bank of Japan decided to bend its long-running yield control policy on Friday, just days after the Fed opted to be non-committal on the future path of rates and the ECB hinted at pauses. The BOJ maintained its guidance allowing the 10-year yield to move 0.5% around the 0% target, but said those would be “references” rather than “rigid limits”. More significantly, it followed up with an offer to buy 10-year Japanese government bonds (JGBs) at 1.0% in fixed-rate operations, instead of the previous rate of 0.5% - leaving the bond market stupefied and confused while the yen swung wildly as the market digested the stealth move. For investors, there is much riding on whether they see any BOJ move as a technical adjustment to a highly constrictive yield-curve-control (YCC) policy or the start of a tightening cycle in the world’s biggest creditor nation with billions invested in U.S. stocks and financial markets. That’s against the backdrop of a “goldilocks” scenario in the United States, after Chair Jerome Powell suggested a soft landing for the economy because the central bank’s staff no longer forecast a recession - not entirely good news for those anticipating rate cuts by next year. Overnight, the U.S. Commerce Department put out its robust initial take on second-quarter GDP. There’s weakness all around in stock markets, with MSCI’s broadest index of Asia-Pacific shares outside Japan down, along with Japan’s Nikkei. The Dow Jones Industrial Average fell 0.67% to snap its longest winning streak since 1987. The ECB raised rates by 25 basis points to a 23-year high on Thursday, but President Christine Lagarde sent the euro tumbling with talk of a pause in September. The euro slid nearly 1% overnight and was nursing its losses at $1.0980 on Friday. While markets are mostly focused on the diverging monetary trajectories of the G3 central banks and what they mean for stocks and currencies, there’s also a bunch of European economic indicators due. Second-quarter GDP estimates for Spain, France and Germany should show modestly expanding and yet struggling economies, if latest purchasing manager indexes are any indication. Inflation numbers are also due in France and Germany. The U.S. Commerce Department is due to release its broad-ranging and hotly anticipated Personal Consumption Expenditures (PCE) report on Friday, which will cover income, spending, and crucially, inflation. Key developments that could influence markets on Friday: Germany, France July CPI France, Spain, Germany Q2 GDP Eurozone July economic confidence U.S. personal spending, core PCE Earnings: AstraZeneca, BASF, Exxon Mobil, P&G

Opinion: Intel sees a huge AI opportunity — but its clock is ticking 2023-07-28 - Intel Corp. has some major opportunities in the arms race to power artificial intelligence, but its ability to hit the gas will be key. Executives talked up AI effusively on Intel’s INTC, +0.55% earnings call Wednesday afternoon, highlighting many opportunities, including in the PC business, for Intel to provide AI-related chips. Meanwhile, there’s potential manifesting elsewhere in the business, as the company’s data-center accelerator chips, including the next iteration of the Gaudi chip, are “in the pipeline” for next year, according to Chief Executive Pat Gelsinger. See: Intel stock rallies after earnings show AI data-center beat, strong PC sales But the pressure is on and competition is stiff. Intel has a recent history of blunders, but it will need to execute on product launches and not slip with delays, as happened for a brief period before Gelsinger took over. Intel also has a lot on its plate, as it’s in the throes of creating a contract manufacturing business that it hopes will compete directly with Taiwan Semiconductor Manufacturing Co. TSM, -0.06% . The company cannot make any missteps as it is facing one of the biggest opportunities ahead of it in years — one that could transform its business in a major way. While the opportunities in AI are massive, Intel will need to defy some doubters in order to achieve success. Ruben Roy, a Stifel & Co. analyst, wrote in a recent note that he believed Intel rival Advanced Micro Devices Inc. AMD, +0.92% is currently better positioned to capture data-center spending right now given its focus on building up AI-powered servers. He hadn’t seen evidence that the current version of Gaudi is “getting significant traction.” Gelsinger did not specify at what point next year the new Gaudi3 AI chip is expected, but he said Intel will have some “very positive updates there in the future with both customers as well as expanded business opportunities.” Many companies with data centers, cloud-service providers and hyperscalers are working frantically to add more servers with higher-end chips to handle the onslaught of computing power needed to run AI, such as training and inference, and the new slew of generative-AI applications being developed. But so far Nvidia Corp. NVDA, +0.99% , which develops graphics chips (GPUs) tuned to run AI applications, has been by far the biggest winner in the AI arms race. Back in May, Nvidia gave a stunning quarterly forecast for what would be a record $11 billion in revenue, based in large part on surging demand for its AI-related chips. Gelsinger also acknowledged some near-term “wallet focus” on AI accelerator chips, versus the general purpose CPU chips that Intel sells more of, which has been an area of concern on Wall Street. In that sense, Intel expects to see server CPUs modestly decline on a sequential basis in the third quarter before showing recovery in the fourth quarter. Beyond in the data center, Intel could also capitalize on huge potential for AI in the PC market. Gelsinger said the company’s next Meteor Lake chips will be “ushering in the AI PC generation,” and he likened the process of bringing AI to the PC to the company’s past Centrino chip family that brought WiFi functionality to the PC back in 2003. In Intel’s view, AI-enabled PC chips will be critical due to the latency challenges brought upon by the process of going back and forth to the cloud or data centers. “You can’t round-trip to the cloud if you don’t have the latency, the bandwidth or the cost structure,” Gelsinger said. “With that in mind, we do see this idea of bringing AI directly into the client and Meteor Lake, which we’re bringing into the market in the second half of the year.” He said it will be the first major product for the PC that includes native AI capabilities, and the neural engine Intel has talked about. “This will be a volume delivery that we will have, and we expect that Intel is the volume leader for the client footprint,” he said. Intel certainly made a case for its place in the AI revolution, but it remains to be seen whether Gelsinger can avoid his predecessors’ mistakes in getting the company to its destination — all while rivals chase the same juicy market. The clock is ticking.

Yellow up 11% after hours, reports sale talks for Yellow Logistics 2023-07-28 - Shares of trucking company Yellow YELL, -44.12% rose 11% to 63 cents in post-market trading after the company said it’s in talks with multiple parties about selling Yellow Logistics. Yellow said the third-party logistics broker is “one of the fastest growing 3PLs in the industry.”

Stanley Black & Decker raises dividend by 1 cent 2023-07-28 - Stanley Black & Decker SWK, +1.24% has raised its quarterly cash dividend by one cent, to 81 cents a share. The tool maker will pay the dividend on Sept. 19 to shareholders of record as of Sept. 5. “We are pleased to announce this dividend increase as our long-standing commitment to rewarding shareholders through growing cash dividends is a key element of our overall shareholder value proposition,” Chief Executive Donald Allan Jr. said.

Coursera shares surge after Q2 revenue growth, raised outlook 2023-07-28 - Shares of Coursera COUR, -2.25% were rising in the after-hours session Thursday, following the company’s release of second-quarter financial results which showed revenue growing in the period. The company also raised some guidance. At 7:15 p.m. ET, the online learning platform’s shared had gained 12.9%, to $14.69 each. The stock ended the day’s regular session with a 2.3% loss, closing at $13.01 a share.

Ford takes a jab at from-the-brink GM Bolt, says it will make more hybrids 2023-07-28 - Ford Motor Co.’s solid beat-and-raise late Thursday took a backseat to concerns about the automaker’s delayed EV production goals, but that didn’t stop Ford’s top executive from talking about an often-forgotten side of the EV market — and take a small swing at a recent General Motors Co. action. In the call with analysts following the results, Ford’s F, +0.44% Chief Executive Jim Farley talked up hybrids as a possible way that Ford could stand out amid increasing EV competition. Farley also took a veiled swipe at GM GM, +1.78% , which earlier this week unveiled plans to bring back the Chevy Bolt. A couple of years ago, the auto industry thought in “extreme” terms between hybrids and EVs, Farley said. The industry now realizes — and it has seen in markets such as China — that there are several degrees of electrification in between those two ends, he said. Ford decided to keep investing in heavy-duty hybrid vehicles and it has been “surprised” at some of their popularity, Farley said. Don’t miss: Ford revenue jumps 12%, but stock heads lower as Wall Street spooked by shifting EV production goal Hybrids are more expensive than internal combustion-engine vehicles, but are cheaper than electric vehicles because their batteries are significantly smaller even in plug-in hybrids, which are capable of driving a few dozen miles solely on an electric charge. For example, Farley said Ford never thought it would see a 60% hybrid mix for its compact pickup truck Maverick. “It’s far beyond our expectation, and so we’re just listening to the market,” he said. Ford’s internal-combustion customers “don’t want to be left behind,” and to them decarbonizing is just as attractive to Ford. Ford’s “pro” customers as well could view hybrids as an alternative, he said. “All I’m saying is, you’re going to see a lot more hybrid system from us,” but perhaps not in the traditional sense of a Toyota Prius or a Ford Escape hybrid, Farley said. That’s when the little side eye to GM came about. When asking about capital requirements to EVs, an analyst mentioned one of Ford’s “competitors” that had announced this week that one of their vehicle programs slated to end had been “refreshed.” Related: GM raises profit outlook, tops estimates, but stock weighed down by $792 million recall charge GM, which reported second-quarter earnings on Tuesday, surprised markets by saying that it will bring back a revamped version Chevy Bolt at an unspecified time in the future. That was an about-face for GM, which in April said that the current version of Bolt would end production this year. The future Bolt will be built on GM’s next-generation EV platform and battery architecture. “I want to be really clear about this,” Farley said. “All of you haven’t yet seen our second-cycle EV strategy, or even the third cycle that we’re working on, and I’m not going to tell our competitors about that right now, but I will tell you that it’s very important to know” that Ford’s strategy is not to build tax-credit-compliant vehicles that may be very affordable for buyers “but lose lots of money.” “That’s not our strategy when it comes to electrification. Our strategy is to make 8% margin” regardless of price,” the CEO said. GM is thought to lose money on the Bolt, and not just because of its thinner margins that are common with compact cars, electric or otherwise. All Bolts and Bolts EUVs ever produced, more than 100,000 vehicles, eventually had to be recalled for battery swaps, with GM taking a charge of nearly $800 million this quarter related to the massive recall. The Bolt eventually qualified for tax credits under the Biden administration’s Inflation Reduction Act, which boosted sales. Not at Ford, Farley said. “We don’t create greenhouse gas credits between our businesses … We don’t play games like that.”

Shunned commodity ETFs starting to ‘perk up’ as Fed watches grain prices 2023-07-28 - Hello! This week’s ETF Wrap digs into commodity ETFs rising so far this month. Please send feedback and tips to christine.idzelis@marketwatch.com or isabel.wang@marketwatch.com. You can also follow me on Twitter at @cidzelis and find me on LinkedIn. Isabel Wang is on Twitter at @Isabelxwang. Sign up here for our weekly ETF Wrap. Exchange-traded funds that provide exposure to commodities are rising lately, but ETF investors have been shunning them after a recent broad correction. Shares of the Invesco DB Commodity Index Tracking Fund DBC have jumped 7.6% so far this month through Thursday, paring year-to-date losses to a modest 0.9%, according to FactSet data. The Invesco DB Agriculture Fund DBA has risen 4.9% in July, bringing its gains to 9.7% over the same period. Commodities ETFs are “a place that is starting to perk up again,” said Todd Sohn, an ETF strategist at Strategas, in a phone interview. Meanwhile, the Invesco DB Commodity Index Tracking Fund and Invesco DB Agriculture Fund have seen outflows this year, he said. Investors have pulled $487 million from the Invesco DB Commodity Index Tracking Fund this year, after about $7.5 million of inflows over the past week, according to FactSet data as of July 26. And the Invesco DB Agriculture Fund has seen $302 million of outflows in 2023, including more than $4 million in the past week. Both ETFs jumped in 2021 as inflation was climbing, but the Invesco DB Commodity Index Tracking Fund is now recovering from a meaningful correction, according to Sohn. That particular ETF, which broadly tracks commodities in the energy, metals and agriculture sectors via futures contracts, sank about 28% from June 9, 2022 through May of this year, he said. A stronger-than-expected economy this year may lead to higher prices for energy and metals, according to Bob Minter, director of ETF investment strategy at abrdn. Federal Reserve staff have taken a forecast for a recession “off the table,” he said by phone, pointing to the outcome of the Fed’s policy meeting on Wednesday. And the Commerce Department on Thursday estimated that U.S. gross domestic product rose at an annual 2.4% pace in the second quarter, stronger growth than economists expected. The U.S. economy has been resilient as the Fed raises interest rates to combat inflation that remains elevated even as it’s been easing from last year’s June peak. Read: Fed no longer foresees a U.S. recession — and other things we learned from Powell’s press conference Fading recession fears may prompt investors to look for stronger commodity fundamentals in the second half of 2023, according to Minter. Low inventories for industrial metals such as copper, aluminum, nickel, zinc and lead may help support a rally, he said. The abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF BCIM has gained 3.1% this month through Thursday, but it remains down about 10% so far in 2023, according to FactSet data. Meanwhile, crude oil prices have jumped in July, with West Texas intermediate crude CL00 closing above $80 a barrel on Thursday. And wheat prices have risen this month amid Russia-Ukraine tensions. Read: U.S. oil benchmark closes above $80 a barrel for first time since April Also see: Wheat prices gain over 8% as Russia-Ukraine tensions rise after the suspension of the grain deal Jake Hanley, senior portfolio strategist at Teucrium, said in a phone interview that he has recently fielded more interest from financial advisers in the firm’s exchange-traded fund that provides exposure to wheat W00. Shares of the Teucrium Wheat Fund WEAT have surged 9.6% this month through Thursday, according to FactSet data. Still, the fund is down 11.5% this year, with around $13 million in outflows in 2023 as of July 26, according to FactSet data. Fed Chair Jerome Powell said Wednesday during his news conference that grain prices went up on Russia’s withdrawal from Black Sea grain deal earlier this month, but “they remain well below their peaks of last spring.” He said the moves seen so far are “not expected to make a significant contribution to U.S. inflation,” but the Fed will be watching the situation “carefully.” As usual, here’s your look at the top- and bottom-performing ETFs over the past week through Wednesday, according to FactSet data. The good… Top Performers %Performance KraneShares CSI China Internet ETF KWEB 7.4 iShares MSCI Brazil ETF EWZ 5.5 WisdomTree China ex-State-Owned Enterprises Fund CXSE 5.4 iShares MSCI China ETF MCHI 5.0 iShares China Large-Cap ETF FXI 5.0 Source: FactSet data through Wednesday, July 26. Start date July 20. Excludes ETNs and leveraged products. Includes NYSE, Nasdaq and Cboe traded ETFs of $500 million or greater …and the bad Bottom Performers %Performance U.S. Global Jets ETF JETS -2.2 VanEck Rare Earth/Strategic Metals ETF REMX -2.1 Invesco Solar ETF TAN -2.0 SPDR S&P Biotech ETF XBI -1.5 ALPS Clean Energy ETF ACES -1.5 Source: FactSet data New ETFs Franklin Templeton announced on Thursday the launch of the BrandywineGLOBAL – U.S. Fixed Income ETF USFI , a fund that buys investment-grade and U.S. dollar-denominated fixed-income securities. a fund that buys investment-grade and U.S. dollar-denominated fixed-income securities. PGIM said July 26 that it launched the PGIM AAA CLO ETF PAAA to give investors exposure to the growing $1.2 trillion collateralized-loan-obligation market. to give investors exposure to the growing $1.2 trillion collateralized-loan-obligation market. YieldMax announced on July 25 the launch today of the YieldMax AMZN Option Income Strategy ETF AMZY , “which seeks to generate monthly income via a synthetic covered call strategy on Amazon.com.” Weekly ETFs reads

Never mind global warming, ‘era of global boiling has arrived,’ warns U.N. head 2023-07-28 - That’s United Nation’s Secretary-General Antonio Guterres, himself on a boil Thursday, in a climate-change speech delivered as major climate trackers declared July the hottest month on record. “Humanity is in the hot seat,” Guterres told a press conference. “For vast parts of North America, Asia, Africa and Europe, it is a cruel summer. For the entire planet, it is a disaster. And for scientists, it is unequivocal — humans are to blame. Related: July 2023 is the hottest month ever recorded. Blame global warming and El Niño. Although Earth’s temperature has risen and fallen naturally in the eons since its birth, it is the pace of post-Industrial Revolution atmospheric warming via human-generated greenhouse gases that some officials, worried citizens and technology and alternative-energy champions are fighting to slow, or even reverse. With a warming atmosphere comes weather extremes such as floods and deadly heat. “All this is entirely consistent with predictions and repeated warnings. The only surprise is the speed of the change. Climate change is here, it is terrifying, and it is just the beginning,” Guterres added. He spoke on the same day that President Joe Biden’s White House announced new federally-mandated protections for outside workers due to heat. Washington moved on extreme heat just weeks after Texas passed a law that will eliminate mandatory water breaks for construction workers in cities where such ordinances had been in place. Such action comes as nearly 40% of the U.S. population faces extreme heat advisories right now, according to the National Weather Service. Above-normal temperatures have already scorched the Southwest this month, and more heat is expected in the Midwest and the Northeast in the coming days. Muggy Washington won’t be spared, and the heat index in the capital could reach 110 degrees Fahrenheit on Friday. “Even those places that are used to extreme heat have never seen it as hot as it is now for as long as it’s been,” Biden said. “Even those who deny that we’re in the midst of a climate crisis can’t deny the impact of extreme heat is having on Americans.” Both Guterres and Biden spoke on the day that at least three different organizations declared July a record month for extreme heat: the World Meteorological Organization, the European Union–funded Copernicus Climate Change Service and Leipzig University in Germany. Related: ‘The hottest I ever remember’: Phoenix scorches above 110 for a record 19th straight day A release from Leipzig University and another from the WMO and the Copernicus Climate Change Service, known as C3S, said July temperatures were about 1.5 degrees Celsius (2.2 degrees Fahrenheit) above preindustrial levels. That rise is tied to human-caused global warming and includes a boost to temperatures from El Niño, the recurring weather phenomenon whose latest impact, scientists say, is only beginning. Related: Here comes El Nino: It’s early, likely to be sloppy and add even more heat to a warming world “The air is unbreathable, the heat is unbearable, and the level of fossil-fuel BRN00, -0.23% profits and climate inaction is unacceptable. Leaders must lead. No more hesitancy, no more excuses, no more waiting for others to move first. There is simply no more time for that,” Guterres said. Oil and gas concerns and the lawmakers in state’s that largely host these interests have long said that while they acknowledge climate change, it will take a broad portfolio of energy answers, from natural gas to solar to nuclear, to smooth the transition to a greener-energy future and hold down costs for businesses and consumers. Guterres wrapped his remarks with some hope for reversal, but only if a more-aggressive response becomes immediate.

Jim Farley Tells Why Ford Slashed F-150 Lightning Price — Without Saying 'Tesla Cybertruck' - Tesla (NASDAQ:TSLA), Ford Motor (NYSE:F) 2023-07-28 - Ford Motor Co F CEO Jim Farley shed more light on why the company cut the price of its F-150 Lightning electric pickup earlier this month at the company’s earnings call on Thursday. What Happened: The CEO explained that the company cut the price of the F-150 Lightning to create an order bank for a tripling in production. “We didn’t cut the price of the F-150 by $10,000 to create an order bank for our current production rate. It’s for a tripling,” the CEO said. Earlier this month, Ford cut prices on its least expensive version of the F-150 Lightning by $9,979. Several other trim packages were cut between $8,479 and $9,479 and its most expensive platinum trim model was cut by just over $6,000. The company said then that its Rouge Electric Vehicle Center in Michigan will seek to triple its annual run rate to 150,000 F-150 Lightning trucks beginning this fall following an upgrade. “The ramp on F-150 in September is really significant. We always knew that we had to build an order bank that looked nothing like the original F-150 Lightning order bank because our production is tripling,” Farley said. Why It Happened: The cut brought the tag on the vehicle down and closer to $50,000 but it is still above the Lightning’s launch price. Several analysts have pegged the price cut to an impending price announcement by Tesla TSLA for its upcoming Cybertruck. The Cybertruck is expected to be up against the Lightning and Rivian Automotive‘s electric trucks R1T and R1S. "While Ford said the cuts reflect improvements in scale and battery raw materials costs, we believe Ford wanted to get in front of imminent Tesla Cybertruck pricing for the September delivery event," Future Fund Managing Partner Gary Black said. Check out more of Benzinga's Future Of Mobility coverage by following this link. Read Next: Ford CEO Jim Farley Echoes Elon Musk On EV Pricing, Scales Down Production Targets Photo by Mike Mareen on Shutterstock

Subway's Tuna Lawsuit Saga Ends With Dismissal 2023-07-28 - A lawsuit against Subway alleging that its tuna products contained ingredients other than tuna has been dismissed, Reuters reports. Subway’s Stand: The plaintiff, Nilima Amin and Subway have agreed to dismiss the case with prejudice, meaning it cannot be refiled. Subway welcomed the decision, maintaining that their tuna is “100% real, wild-caught”. See Also: A Long Road Ahead: Mark Zuckerberg Says Meta Will Pour Enough Gasoline To Fuel Threads’ Growth The company stated, “The lawsuit and the plaintiff’s meritless claims, which have always lacked any supporting evidence, resulted in the spread of harmful misinformation and caused damage to Subway franchisees and the brand.” Case Background: Amin had claimed that Subway’s tuna sandwiches, salads, and wraps included other species of fish, chicken, pork, and cattle, or no tuna at all. She had ordered Subway tuna products over a hundred times before filing the lawsuit in January 2021. Subway’s Request for Sanctions: Subway has requested sanctions against Amin’s lawyers for bringing a frivolous class action. The decision on this request will be made later by U.S. District Judge Jon Tigar. Read Next: Paul Krugman Says Elon Musk Suffers From ‘Tech Bro Syndrome’ Amid Twitter Rebranding Image Via Shutterstock

WhatsApp's Next Leap: Quick Video Messaging — Here's How To Use It - Meta Platforms (NASDAQ:META) 2023-07-28 - After voice messages popularity soared among WhatsApp users, the Meta Platforms Inc. META-owned messaging app has taken communication to new heights with the introduction of instant video messages. What Happened: On Thursday, WhatsApp rolled out a new feature that allows users to send instant video messages directly within the chat window. To ensure video messages are not misused, recipients cannot forward them to other users. Also, all videos sent using this feature will be end-to-end encrypted, ensuring that only the sender and intended recipient can view the content. See Also: WhatsApp Scrambles To Clear The Air After Elon Musk Says Meta’s Messaging Service ‘Cannot Be Trusted’ How It Works: Just like sending a voice message, users can access the video message feature within the chat window. Upon tapping the designated button, users will switch from voice to video mode, ready to begin recording a 60-second video clip. Hands-Free Recording: WhatsApp has also incorporated a hands-free recording option for convenience. After switching to video mode, users can swipe up to enable hands-free recording, allowing them to capture moments without needing to hold the recording button continuously. Playback And Sound: When recipients open a quick video message in the chat window, the video will play on mute by default. Tap on the video to unmute and enjoy the accompanying audio. This feature ensures that video messages won’t unexpectedly play loud audio when viewed in public or silent environments. Why It’s Important: Another major feature WhatsApp has rolled out in the recent past is HD photo sharing. WhatsApp employs heavy image compression to conserve storage space on users’ devices. However, the new feature would allow users to send higher-resolution images with a relatively lighter compression level. The rollout of this feature has already begun, but it is turned off by default. To take advantage of the improved image quality, users will need to navigate to their settings and enable the “HD” photo-sharing option. Check out more of Benzinga’s Consumer Tech coverage by following this link. Read Next: WhatsApp’s Latest Update For iOS Makes It Easier To Use The App On Other Devices Photo by kovop58 on Shutterstock

Elon Musk's Tesla Reportedly Speeds Up India Plans: Executives To Meet Government Officials For Manufacturing Base - Tesla (NASDAQ:TSLA) 2023-07-28 - This story was first published on the Benzinga India portal. Tesla Inc TSLA is reportedly accelerating plans to set up a manufacturing base in India, with company officials set to meet agency heads and top government officials soon. What Happened? Senior executives from the electric car maker on Thursday met with Nivruti Rai, the newly appointed CEO of Invest India, which assists global investors to invest and operate in India, Economic Times, a local newspaper, reported, citing sources. Further meetings with the nation's commerce and industry minister Piyush Goyal are also on the agenda, the sources added. While the details of the recent meeting with Rai remain undisclosed, it follows a reported virtual meeting between Goyal and Tesla CEO Elon Musk earlier this month. Multiple ministries, including the Ministry of Commerce and Industry and the Ministry of Electronics and Information Technology, have reportedly been involved in discussions regarding Tesla’s proposals to set up car and battery manufacturing facilities in India. These talks have gained momentum since Musk’s meeting with Prime Minister Narendra Modi in the US last month. Tesla has been eager to extend its reach beyond China to India and is exploring the possibility of setting up its auto parts and electronics chain in the latter. Possible incentives and tax breaks have also been part of the discussions. The Indian government has encouraged Tesla to assess the existing domestic auto components supply chain, but the company wants to establish its own supply chain ecosystem in India. Tesla has been interested in selling low-cost cars in the Indian market but has reportedly faced challenges with the government’s stand against lowering import duties. Read Next: Elon Musk’s Tesla Could See Next Boost To Its Stock Price Come From India, Says Top Investor

Disney In Distress Again? DeSantis' Board Reportedly Weighs Drastic Budget Cuts In Mouse House's Florida District - Walt Disney (NYSE:DIS) 2023-07-28 - Florida Governor Ron DeSantis and Walt Disney Co. DIS have been locked in a battle for over a year now. A new report sheds further light on how the Mouse House is continuing to pay for its decision to stand up against the state government. What Happened: The local governing board set up by DeSantis to administer the special governing district where the Florida Walt Disney World operates suggested this week that it is planning millions of dollars worth of spending cuts, Politico reported. The board is eyeing cutting $8 million of the district's annual spending meant for law enforcement provided exclusively to Disney's properties, chair of the board Martin Garcia said at a public meeting, according to the report. “That doesn't make any sense to me and it doesn't make any sense to anybody on our team that's looked at it,” Garcia reportedly said. He pointed out that Disney wasn't the only taxpayer in the district. See Also: Best Media Diversified Stocks Why It's Important: Before the clampdown by DeSantis and Florida, the previous board, which went by the name “Reedy Creek Improvement District” was mostly overseen by board members representing Disney's interests. The entertainment giant could therefore run its own government in the district and enjoyed advantages such as implementing plans without having to go through the zoning commissions and building inspection departments. All these changed when the company voiced opposition against the "Don't say gay" law passed by Florida, which prevented the discussion of sexual orientation and gender in classes from kindergarten to grade 3. Since then, DeSantis has been following retaliatory tactics, some of which included setting up a state prison on bordering land, raising taxes, and exploring the sale of state-owned utilities. Disney took on the governor's attack by bringing up a lawsuit in the District Court for the Northern District. of Florida Disney closed Thursday's session down 0.58% at $85.36, according to Benzinga Pro. Read Next: DeSantis Hits Back At Harris’ Fiery Take On Florida’s New History Standards: ‘Will Continue To Expose Their Agenda And Their Lies’

Former Trump Lawyer On Mar-A-Lago Probe: 'A Tight Case, The Evidence Is So Overwhelming' 2023-07-28 - Former White House lawyer Ty Cobb asserted that the classified documents case against former President Donald Trump has abundant evidence following the Justice Department’s announcement of new charges. What Happened: During an interview with CNN, Cobb, who served in the Trump administration, expressed his belief that the superseding indictment revealed by federal prosecutors on Thursday will "last an antiquity." "I think this original indictment was engineered to last 1,000 years and now this superseding indictment will last an antiquity," Cobb said. "This is such a tight case, the evidence is so overwhelming." The Justice Department on Thursday brought new charges against Trump and his associates in the ongoing classified documents case. The charges involve allegations of attempted deletion of surveillance footage at Mar-a-Lago and retention of additional sensitive documents. The recent indictment includes Trump, his aide Walt Nauta, and Carlos De Oliveira, the property manager at Mar-a-Lago. See Also: Ron DeSantis Trails Trump In Polls Due To Lack Of Memorable Personality, Say Experts Why It Matters: These new charges add to the growing legal troubles for Trump, who is already facing multiple indictments related to classified documents found at his Mar-a-Lago residence and a hush money payment made to an adult film star. Despite these legal challenges, Trump continues to lead in the polls for the 2024 GOP presidential nomination. His supporters have remained steadfast, with his campaign funding increasing around the indictment announcements. The trial for the classified documents case is set to begin next year, which could potentially clash with his campaign schedule. Read Next: Melania Repeatedly Rebuffed Donald Trump’s Request For Campaign Support: Report

Tesla Analyst Shrugs Off Report On EV Maker's Hush-Hush Squad To Quash Customer Complaints: Here's Why - Tesla (NASDAQ:TSLA) 2023-07-28 - After a report suggested that Tesla, Inc. TSLA had set up secret teams to silence customer complaints about range issues, an analyst did not attach much significance to it. What Happened: Future Fund's Gary Black tweeted that he is not concerned about the report carried by Reuters about suppressing complaints regarding underperformance on the range of the vehicle. "Reuters which has a history of posting wildly false negative reports on $TSLA," he said. "The EPA sets the advertised battery range for each EV based on the same process, so it would be difficult for TSLA to game." Tesla’s service team reportedly canceled appointments for customers who complained about range issues, as per Reuters. One customer traveling from Colorado to California in a new 2021 Model 3 found the range less than half of the advertised 353 miles on a fully-charged battery. The team, known as the “Diversion Team” in Las Vegas, was tasked with canceling as many range-related appointments as possible to alleviate range anxiety and service center complaints. Inside the Nevada team’s office, employees celebrated canceling appointments with applause. The team closed hundreds of cases weekly, saving the company $1,000 per diversion. Benzinga’s request for clarification from Tesla went unanswered. Tesla frequently overpromised on performance, leading to numerous complaints, the report noted, citing automotive experts. Years ago, Tesla reportedly employed another tactic by rigging its range-estimating software. The range meter showed optimistic projections on a full battery, but below 50% charge, it displayed more realistic projections to prevent customers from getting stranded. Why It's Important: Tesla stock has been on a lean trot since it reported its earnings and has lost over 12%. Black said in a separate tweet that some of the weakness seen on Thursday in Tesla stock is attributable to the Reuters report. In June 2022, Tesla CEO Elon Musk's mother Maye Musk took exception to Reuters’ coverage of the company's announcement regarding job cuts. “Reuters is particularly bad at accurate Tesla reporting," she had said then. Later that month, she agreed with one Tesla influencer's comment that "Reuters is hired to create Tesla FUD imho." Tesla closed Thursday’s session down 3.27% at $255.71, according to Benzinga Pro data. Check out more of Benzinga’s Future Of Mobility coverage by following this link. Read Next: Cybertruck, Tesla’s ‘Home Run?’ Analyst Sees EV Pickup As ‘Rolling Billboard’ That Will ‘Really Catapult’ Stock Photo via Shutterstock

Vietnam's EV maker VinFast set to break ground on delayed U.S. factory 2023-07-28 - VinFast is set to break ground on its delayed U.S. factory on Friday. VinFast has received incentives worth $1.2 billion from the state of North Carolina for the project. "We see a lot of potential in the U.S. market with EV infrastructure ... with the regulations to force EVs in major cities by 2035. So I think there's a huge market and the whole world is moving from internal combustion engine vehicles to EVs," Le told CNBC's " Squawk Box Asia " on Friday. VinFast said the 1,800-acre facility is designed to produce up to 150,000 vehicles a year in phase 1 . "We just completed getting the permit for the construction. We are very excited that [it] is going to be a big milestone for VinFast history in the U.S. and we will start groundbreaking for the plant here in the U.S.," VinFast CEO Le Thi Thu Thuy told CNBC. Vietnam's VinFast will begin construction on its electric vehicle factory in North Carolina on Friday morning local time, the Vietnamese automaker confirmed with CNBC. Le acknowledged that there's increasing competition in the U.S. market. "We think that there's still a lot of room for new players. I think the U.S. consumers are open to new players, as long as we have good quality products," said Le. VinFast entering the U.S. EV market means it will have to go up against Tesla and BYD, as well as traditional automakers increasingly focusing on hybrids and EVs. But crucially, the electric vehicles produced at VinFast's new facility could qualify for up to $7,500 in U.S. tax credits. VinFast vehicles do not currently qualify because they are not built in the country, but are built in Vietnam. The company is also pricing its VF 9 model at a considerable discount to the comparable Tesla Model X. Prices for VinFast's VF 9 are expected to begin around $85,000 for the Eco model, according to Motor Trend. A Tesla Model X costs about $100,000. "Our strategy from the beginning has always been providing premium quality products at affordable pricing, coupled with excellent customer service. So we stay true to that strategy," said Le. "We are the only one in the market that have a lineup of vehicles from very small city vehicles like $12,000 vehicles to full-size three-row SUVs like the VF 9 that will go to market in the U.S. later this year." VinFast's U.S. expansion has faced hurdles, including delayed deliveries to its first customers due to a software issue in May. The company also reduced its U.S. headcount in February. "We [recalled] the vehicles because the screens could potentially go blank for a second. So we updated our software over the air to to fix the issues out of precaution. We announced that we [recalled] the vehicles but that was just a software update," Le said. In May, the firm announced that it plans to list in the U.S. via a merger with special purpose acquisition company Black Spade Acquisition Co. — CNBC's Penny Chen contributed to this report.

Bank of Japan loosens yield curve control, pledging 'greater flexibility' 2023-07-28 - Japan's central bank on Friday loosened its yield curve control, roiling financial markets and underscoring concerns about its protracted monetary easing on financial markets and the real economy. In a policy statement, the Bank of Japan said it will continue to allow 10-year Japanese government bond yields to fluctuate in the range of around plus and minus 0.5 percentage points from its 0% target level — though it will offer to purchase 10-year JGBs at 1% through fixed-rate operations. This move effectively expands its tolerance by a further 50 basis points. The BOJ pledged to "conduct yield curve control with greater flexibility, regarding the upper and lower bounds of the range as references, not as rigid limits, in its market operations," citing the need to remain nimble given "extremely high uncertainties for Japan's economic activity and prices." In what was BOJ Governor Kazuo Ueda's first major policy change since he took the helm in since April this year, the central bank also kept its ultra-loose interest rate intact, electing to hold its short-term interest rate target at -0.1% after its July policy meeting. It also raised its median forecast for inflation to 2.5% for fiscal 2023, up from its 1.8% prediction in April. "In practical terms, this 'flexibility' language is similar to that used in late 2022, when the 10yr JGB target range was increased from +/-25bp to +/-50bp," said Stephen Halmarick, Commonwealth Bank of Australia's chief economist in a note. "The 'flexibility' does represent, therefore, some tightening in monetary policy." Years of accommodative monetary policy in Japan — even as global central banks have tightened policy in the last 12 months — have concentrated carry trades in the Japanese yen. Carry trades involve borrowing at a lower interest rate to invest in other assets that promise higher returns.

Yen and bond yields rise after BOJ pledges more flexibility to yield curve control 2023-07-28 - The Japanese yen strengthened and 10-year JGB yield rose after the Bank of Japan said it would allow "greater flexibility" in its target range for 10-year Japanese government bond yields. Yields for 10-year Japanese government bonds rose to 0.575% for the first time since September 2014, before easing slightly to 0.55%. The yen was trading at 138.64 against the dollar at 12:35p.m. Hong Kong and Singapore time. After a two-day policy meeting, the BOJ adjusted its stance on its yield curve control policy, saying it will continue to allow 10-year government bond yields to fluctuate in the range of around plus and minus 0.5%. The central bank also offered to buy 10-year JGBs at 1% every business day through fixed-rate operations, unless no bids are submitted. The move effectively expands its tolerance by another 50 basis points. A Nikkei report earlier said the BOJ will let long-term interest rates rise beyond its cap of 0.5% "by a certain degree" at its monetary policy meeting today.

What Qin Gang's disappearance means for U.S.-China relations 2023-07-28 - U.S. officials greet Qin Gang, then China's foreign minister, ahead of a meeting with U.S. Secretary of State Antony Blinken (not pictured) in Beijing on June 18, 2023. Leah Millis | Afp | Getty Images BEIJING — The flurry over Qin Gang's disappearance and removal from the position of foreign minister has little impact on U.S.-China relations, analysts said. Qin had only held the position for about six months before he disappeared from public view in late June — with little explanation. China officially announced his dismissal from the foreign minister role on Tuesday. China's top diplomat Wang Yi is reassuming the foreign minister role, a position he held for two terms before his promotion late last year within the ruling Chinese Communist Party. He has met with U.S. Secretary of State Antony Blinken twice in the last two months. "China's foreign minister is an implementer of decisions made by [Chinese President] Xi Jinping and his close circle; their role in actual policy formulation is relatively limited," said Nick Marro, global trade leader at The Economist Intelligence Unit. "We don't expect the recent events to have a significant impact on China's diplomatic relations," he said. "That said, the opacity attached to all of this drama will complicate some of the logistics underpinning foreign engagement." China's foreign ministry has declined to shared why Qin had to leave his position. watch now While Wang's return to the foreign minister role is unusual, his promotion to top diplomat had also come contrary to expectations of retirement. Xi meanwhile has broken precedent by taking a third term as president in March, and installing loyalists in top positions without the same government experience as their predecessors. "In returning Wang to the helm at the foreign ministry, Xi appears to have opted for a steady pair of hands over any of the younger crop of candidates, buying time for potential successors to be fully vetted and groomed," said Eurasia Group's Jeremy Chan, consultant for China and Northeast Asia, and Anna Ashton, director for China corporate affairs and U.S.-China. "Wang's oversight of policy implementation is therefore likely to strengthen the consistency of Beijing's diplomatic messaging and actions, while further cementing the party's already strong guidance of foreign affairs," the Eurasia Group analysts said in a note. While pressuring China has become an area of rare bipartisan agreement in the U.S., critics say the Biden administration has not had a comprehensive China strategy. What happened to Qin?