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Business

Brexit Customs Checks Make a Quiet Debut at U.Okay. Ports

LONDON – A new era began without a fuss on Friday morning at the ports and terminals on Britain’s south east coast. Ferries and trains transporting goods from Dover and Folkestone to France ran on time, and the drivers snaked their trucks unloaded into the port.

Apparently little has changed on January 1st, the country’s first day outside the internal market and customs union of the European Union. It was a public holiday, after all, and there wasn’t much to do.

For the first time in over 25 years, goods moving between the UK and the European Union can no longer move freely, and goods entering the block will be subject to customs controls.

A trade agreement signed in the UK in the early hours of December 31st, less than 24 hours before it came into force, means that the country and the European Union will trade goods without tariffs. However, businesses will continue to face significant changes that they had to prepare for even during the lockdowns, closings, and other social restrictions imposed by the government to contain a growing pandemic.

The changes are sure to bring “bumpy moments,” a senior cabinet minister predicted this week. The government estimates that new customs papers alone will cost British companies £ 7 billion (about $ 9.6 billion) a year.

The UK has at least 150,000 exporters who, according to the country’s tax authority, have never shipped their goods beyond the block and are therefore required to file customs declarations for the first time. Border controls within the European Union were abolished in 1993.

This is a change that will be felt immediately in the UK ports, particularly the port of Dover and the Eurotunnel endpoint at Folkestone, which connect the country to France. But on Friday, New Year’s Day, the trains and ferries are said to have run smoothly. Eurotunnel reported that 200 trucks had already used their shuttle train by 8 a.m.

“It seems pretty quiet,” Elizabeth De Jong, the political director of Logistics UK, a trade group, told Sky News on Friday morning.

However, she added that companies are now facing “a new, different language of customs regulations” that need to be understood. She described the next few weeks as a live test, as companies have to ensure that they have the correct documentation for themselves and the goods on board, and traffic into the region has to be controlled.

In the most extreme circumstances, or according to the government, in the worst case, between 40 and 70 percent of trucks going into the European Union may not be ready for the new border controls. This would slow the flow of goods and could result in lines of up to 7,000 trucks driving to the border and delays of up to two days, according to a government report.

Britain has only recently removed a huge backlog of trucks from the border. On late December 20, the French government suddenly closed its border for 48 hours to stop the spread of a new variant of the coronavirus from England. Thousands of trucks and their drivers were stranded for days. Once the border reopened, they had to show a negative coronavirus test before they could enter France.

The delays in the normally fast-paced port have also raised concerns about the UK’s supply of fresh food, much of which is imported from Europe in winter. A fruit supplier urgently arranged for goods to be flown into the country. British fish and shellfish exporters had to mingle to ship their goods to France unaccompanied by drivers before spoiling them.

The spectacle heightened concerns about trading after December 31, the end of the Brexit transition period. Although goods are already moving more slowly because each driver must first take a negative coronavirus test, which can take around 40 minutes to produce results, trucks are unlikely to see thousands of trucks entering France due to the quieter holiday season Wait friday.

“We would expect the persistent disruption to worsen in the first two weeks as freight demand increases,” the government report said. This could take about three months.

Goods entering the European Union from England, Scotland or Wales now require customs controls, including security declarations, and truck drivers need an entry permit for Kent, the county of Dover and Folkestone to confirm they have the necessary documents .

Truck drivers who drive in the other direction initially have to make fewer demands. The UK government has relaxed the rules for goods coming into the country from the European Union for six months.

Categories
Business

EV start-up Canoo unveils new automobile forward of Nasdaq debut

Canoo’s van – known as a multi-purpose delivery vehicle (MPDV) due to its equipment options – is designed for commercial customers.

Canoo

Electric vehicle start-up Canoo unveiled a new van on Thursday ahead of its public debut on Nasdaq next week.

The futuristic-looking van, known as a multi-purpose delivery vehicle (MPDV) due to its equipment options, is designed for everything from last-mile deliveries to food trucks, according to the California company. It is expected to start at around $ 33,000.

“There are many use cases that this vehicle can perform,” said Tony Aquila, chairman of Canoo, a major investor in the company, during a video reveal of the MPDV. “We wanted it to look very chic and modern and at the same time be very affordable.”

Production of the vehicle is scheduled to begin in 2022 and start in 2023. The company did not disclose any specific production plans, but previously announced a strategic relationship with auto supplier and contract manufacturer Magna International.

Such commercial vehicles are expected to be a major driver of the sales of profitable electric vehicles for the automotive industry. It’s a segment that startups and older automakers want to get into quickly in the years to come. Ford Motor, which leads commercial vehicle sales, plans to release an electric vehicle in 2021, followed by an electric version of its F-150 pickup truck the following year.

Interior of the Canoo delivery van, also known as the multipurpose delivery vehicle or MPVD.

Canoo

Canoo said the MPDV will come in two sizes with different EV ranges and battery sizes. The company says the smaller van, known as MPDV1, is expected to range between 130 miles and 230 miles, while the larger van, MPDV2, is between 90 miles and 190 miles based on battery sizes. Canoo takes reservations and refundable deposits of USD 100 for the vehicles on its website.

Canoo is part of a wave of new speculative EV start-ups that are planning to enter the market through reverse mergers with special purpose vehicles, also known as blank check companies, after the IPO. The company announced its merger agreement with Hennessy Capital Acquisition Corp. in August. known.

Canoo is expected to be listed as “GOEV” on Tuesday after a general meeting on the Nasdaq to approve the merger on Monday. The deal is expected to provide Canoo with approximately $ 600 million to support the production and launch of electric vehicles.

Hennessy’s shares fell 10% to around $ 18 on Thursday lunchtime. The stock is still up around 69% since the deal with Canoo was announced on Aug. 18.

This is Canoo’s second planned vehicle. The first was a smaller, pill-shaped vehicle that was more intended for consumers. It is expected to be available via a company’s member-only vehicle service from 2022, according to Canoo.

During the vehicle reveal on Thursday, the company also teased a two-sheet car and pickup truck.

Correction: This story has been updated to take into account that Canoo’s expected ticker symbol is “GOEV”. The company had previously announced a ticker symbol for “CNOO”.

Categories
Health

Shares shut 55% increased on market debut

A woman stands next to signage with the JD.com logo and the company’s mascot “Joy” at the company’s headquarters in Beijing, China.

Qilai Shen | Bloomberg | Getty Images

GUANGZHOU, China – JD Health, the health division of Chinese e-commerce giant JD.com, rose on its debut in Hong Kong.

JD Health issued 381.9 million shares at a price of Hong Kong $ 70.58 each. These stocks traded at Hong Kong $ 94.5 at launch. That was 34% more than the offer price.

Shares rebounded during the day, hitting a daily high of $ 123.3 Hong Kong, up nearly 75% from the offer price. The stock closed at $ 110 Hong Kong.

The company said the net proceeds from the IPO were Hong Kong dollars 26.46 billion ($ 3.41 billion).

JD Health’s shares were valued at the high end of the Hong Kong dollar 62.8 to Hong Kong dollar 70.58 marketed to investors, CNBC previously reported.

The investment banks could decide to exercise the so-called over-allotment option, in which 57,285,000 additional shares would be issued. That would result in raising another $ 3.98 billion in Hong Kong through the IPO. The over-allotment must be exercised by December 31st.

Business growth plans

JD Health said 40% of net sales will be used for business expansion over the next 3 to 5 years, 30% will be used for research and development over the next 2 to 3 years, while the remaining money will be spent on potential investments. Acquisitions and General Corporate Purposes.

The company’s business is focused on online health services such as consultations with doctors, as well as the online pharmacy. JD Health posted sales of 8.78 billion yuan ($ 1.34 billion) for the six months ended June 30, compared to 4.99 billion yuan for the same period last year.

Citing a Frost & Sullivan report, the company claimed in its prospectus that it was the top-selling online health platform in China in 2019.

CEO Xin Lijun declined on Tuesday to say whether the company could keep that position. He stressed that the company’s focus is on improving the user experience, which of course would generate revenue.

“The Chinese health and medicine industry is playing like ‘go,'” Xin said, according to a CNBC translation of his Mandarin-language remarks made during a briefing with reporters in Beijing. He was referring to an ancient board game in which two players fight for most of the territory.

China’s healthcare industry is difficult for startups to navigate. The government is heavily involved in medical care and runs mass insurance programs to reimburse patients.

“It’s not a market-based scenario,” Xin said, noting that it limits the areas startups can do and that each line of business has its own challenges. “In theory, of course, our biggest challenge is to educate more customers about JD Health’s services and better integrate online healthcare with offline services.”

Xin said JD Health could invest in offline drug stores and work more with overseas health organizations.

JD Health’s listing is another big win for the Hong Kong Stock Exchange, where big Chinese companies have gone there to raise money. JD Health’s parent company, JD.com, conducted a secondary listing in Hong Kong in June. Another Chinese internet company, NetEase, also made a secondary listing in Hong Kong that month.

China’s tech giants have stepped up their focus on digital health care following the coronavirus outbreak earlier this year. Internet search giant Baidu is in talks with investors to raise up to $ 2 billion for a new biotech company within three years, CNBC reported in September.

JD.com will remain the majority shareholder of JD Health even after the IPO. A number of so-called cornerstone investors have been brought on board, including Hillhouse, Tiger Global, Lake Bleu Prime, the China Structural Reform Fund, Blackrock and Singapore’s sovereign wealth fund GIC.