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World News

Nio shakes off chip scarcity with greater than 8,000 deliveries in June

Nio plans to begin deliveries of its ET7 electric sedan in 2022.

Evelyn Cheng | CNBC

BEIJING — Chinese electric car start-up Nio said Thursday it delivered more than 8,000 cars in one month for the first time.

The company delivered 8,083 vehicles in June, bringing the second-quarter total to 21,896 cars, according to a release. That quarterly figure came in on the high end of Nio’s forecast for deliveries of between 21,000 and 22,000 vehicles in the three months ended June.

Nio’s U.S.-listed shares are up 9% so far this year. The company has typically delivered more electric cars a month than two other U.S.-listed electric car start-ups, Xpeng and Li Auto. Their shares are up about 3.7% and 21%, respectively, so far this year.

The strong second-quarter performance came despite a decline in monthly deliveries in May from April — which the company had attributed to the global semiconductor shortage.

Nio’s June figures also brought deliveries for the first half of the year to more than 41,900, close to surpassing the total for all of last year of 43,728 cars.

However, the start-up’s deliveries still fall far short of industry giant Tesla, which delivered 184,800 vehicles worldwide in the first quarter alone.

Tesla’s shares are down more than 3.5% for the year so far.

Read more about electric vehicles from CNBC Pro

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Business

Shares Rebound as Wall Road Shakes Off Inflation Worries: Reside Updates

Recognition…Mary Turner for the New York Times

The US stock futures rose along with most European stock indices on Friday as the data showed more signs of the European economy strengthening as it emerges from lockdowns and vaccines are introduced faster.

The S&P 500 is expected to gain 0.3 percent at the start of trading, according to the futures. The US benchmark index is down around 0.4 percent so far this week after concerns about faster-than-expected inflation unsettled markets.

The Stoxx Europe 600 rose 0.4 percent, led by gains in consumer goods companies. One of the biggest winners was Richemont, the Swiss luxury goods company that owns brands like Cartier and Montblanc. Richemont stock rose 5.3 percent after the company reported annual results of strong sales growth in Asia, particularly for its jewelry and watch brands.

Oil prices rose. West Texas Intermediate, the US crude oil benchmark, futures rose 0.7 percent to $ 62.38 a barrel.

  • UK retail sales rose sharply in April as unneeded stores were allowed to reopen. The sales volume rose by 9.2 percent compared to the previous month, announced the office for national statistics on Friday. It was more than double the forecast of the economists polled by Bloomberg. Shopping for clothing stores led to the resurgence.

  • Across the euro area, activity in the service sector increased in May. The purchasing managers index rose from 50.5 in April to 55.1 points, IHS Markit announced on Friday. A value above 50 indicates expansion. The index for the manufacturing sector has hardly changed compared to the previous month at 62.8.

  • “Growth would have been even stronger had it not been for supply chain delays and difficulty restarting businesses fast enough to meet demand, especially in terms of recruitment,” wrote Chris Williamson, chief economist at IHS Markit, in the report.

  • “The outlook for the euro zone is currently quite positive as growth and inflationary pressures mount,” ING’s economist Bert Colijn wrote in a note. He added that the economic recovery, which “started cautiously somewhere in January,” accelerated significantly in the second quarter of this year.

George Greenfield, the founder of CreativeWell, a literary agency in Montclair, New Jersey, applied for a loan from Biz2Credit in March.  The initial amount he was offered was less than a quarter of what he was entitled to.Recognition…Ed Kashi for the New York Times

The government’s $ 788 billion relief effort to small businesses hit by the coronavirus pandemic, Paycheck Protection Program, is ending as it began. The last days of the initiative are full of chaos and confusion.

Millions of applicants seek money from the scarce handful of lenders who still provide government-sponsored loans. Hundreds of thousands of people are stuck in the air waiting to find out if they will get their approved loans – some of which have been stalled for months due to errors or malfunctions. According to the New York Times’ Stacy Cowley, lenders are overwhelmed and borrowers are panicking.

The aid program should continue until May 31st. Two weeks ago, its manager, the Small Business Administration, announced that $ 292 billion in funding for the forgeable loan program was nearly depleted this year and that it would cease processing most new applications immediately.

Then the government tossed another curve ball: the Small Business Administration ruled that the remaining money, roughly $ 9 billion, would only be available through Community Financial Institutions, a small group of specially designated institutions focused on underserved communities.

A steel roll is packed and labeled.Recognition…Taylor Glascock for the New York Times

The American steel industry is making a comeback that only a few months ago would have predicted.

Steel prices are at record highs and demand is rising as companies ramp up production amid the easing of pandemic restrictions. Steel makers have consolidated over the past year so they can have more control over supply. Tariffs on foreign steel imposed by the Trump administration have kept cheaper imports out. And steel companies are hiring again, reports Matt Phillips of the New York Times.

It’s not clear how long the boom will last. This week, the Biden government began talks with European Union trade representatives on global steel markets. Some steel workers and executives believe this could lead to an eventual decline in Trump-era tariffs, widely believed to be the catalyst for the turnaround in the steel industry.

Record prices for steel will not reverse decades of job losses. Employment in the steel industry has fallen by more than 75 percent since the early 1960s. More than 400,000 jobs disappeared as foreign competition increased and the industry shifted to manufacturing processes that required fewer workers. The price hike, however, is fueling optimism in steel cities across the country, especially after job losses during the pandemic brought American steel employment to its lowest level in history.

  • Shareholders in Tribune Publishing, the owner of major city newspapers like The Chicago Tribune and The New York Daily News, will vote on Friday on whether to sell the company to Alden Global Capital, a financial investor with a reputation for cutting costs and increasing costs should lower, approved jobs. Alden already has a 32 percent stake in Tribune, so the deal depends on approval from the shareholders who own the other two-thirds of Tribune shares. Dr. Patrick Soon-Shiong, a multi-billion dollar medical entrepreneur who owns the Los Angeles Times and other California newspapers, has a 24 percent stake in Tribune with his wife, Michele B. Chan. Dr. Soon-Shiong has not publicly commented on how he plans to vote.

  • CNN said Thursday that its prime-time host, Chris Cuomo, gave inappropriate public relations advice to his brother, New York Governor Andrew M. Cuomo, after a series of sexual harassment allegations threatened the governor’s political career earlier this year would have. CNN said Chris Cuomo would refrain from further similar talks with the governor’s staff. However, the network said it would not take disciplinary action against the anchor, whose program was CNN’s top-rated show in the first quarter of the year. Chris Cuomo apologized to viewers and colleagues at the start of the show on Thursday for the calls to the governor’s staff, saying, “It won’t happen again. It was a mistake. “But he also defended himself, saying that he” naturally “gave advice to his brother and that he was” family first, job second “.

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Politics

Violence Shakes Trump’s Boast of ‘New Center East’

WASHINGTON – President Donald J. Trump declared in September: “The beginning of a new Middle East.”

In the White House, Trump announced new diplomatic agreements between Israel and two of its Gulf Arab neighbors, Bahrain and the United Arab Emirates.

“After decades of division and conflict,” said Trump, flanked by leaders from the region in a scene that was later repeated in his campaign ads, the Abraham Accords “laid the foundations for a comprehensive peace across the region.”

Eight months later, such peace remains a distant hope, especially for the most famous intractable conflict in the Middle East, that between Israel and the Palestinians. In fiery scenes all too reminiscent of the ancient Middle East, this conflict has entered its bloodiest phase in seven years and again criticizes Trump’s approach as it raises questions about the future of the accords as President Biden grapples with the role of United States facing looks now play in the region.

Mr Trump’s approach has essentially been to circumvent the challenge of easing tensions between Israel and the Palestinians in order to foster closer ties between Israel and some of the Sunni Arab states, largely based on their shared concerns about Iran.

The agreements he was involved in negotiating generally showed that some of Israel’s Arab neighbors showed less interest in helping the Palestinians, giving Israeli Prime Minister Benjamin Netanyahu more leeway to pursue strategies that further exacerbated Israeli-Palestinian tensions .

“It was very difficult for anyone who knows the region to believe that the signing of the Abrahamic Accords would be a breakthrough for peace,” said Zaha Hassan, a visiting scholar for the Carnegie Endowment for International Peace, which focuses on Palestinian issues specialized.

Vali Nasr, a professor at the Johns Hopkins School of Advanced International Studies, said the agreements were “based on the idea that the Palestinian question is dead,” and rewarded Netanyahu’s tenacious approach to Israeli settlement activities in support of other expansive territorial claims.

“This was proof of his theory that you can have land and peace,” said Nasr.

Former Trump officials said the hyperbolic former president billed the Abraham Accords, which were later extended to Morocco and Sudan, but they were never seen as a means of resolving the Israeli-Palestinian conflict.

On the contrary, the deal, which expanded trade and normalized diplomatic relations between Israel and the four Arab states in whole or in part, instead acted as a reprimand for the Palestinians by showing that their cause no longer defined relations in the region.

Sunni Arab rulers, angry with the Palestinian leadership and tacitly allied with Israel against Shiite Iran for years, moved on.

Jason Greenblatt, who served as Trump’s Middle East Envoy through October 2019, argued that the current spasm of violence in and around Israel “underscores why the Abraham Accords are so important to the region”.

After Palestinian leaders finally rejected a January 2020 Trump peace plan that proposed the creation of a Palestinian state under conditions heavily geared towards Israeli demands, the accords deliberately severed the Israeli-Palestinian conflict from Israel’s relations with the Arabs World, said Greenblatt.

They “have taken the Palestinians’ veto power to move the region forward,” he added.

Others noted that before agreeing to the agreements, the United Arab Emirates had given Mr. Netanyahu a pledge to halt a possible annexation of parts of the West Bank, which had the potential to spark a major Palestinian uprising. (Trump officials also opposed such annexation, and Mr Netanyahu may still not have enforced it.)

Dennis Ross, a former Middle East peace negotiator who served under three presidents, described the deals as an important step for the region but said the violence in Israel’s cities and Gaza Strip shows how “the Palestinian issue still holds a cloud over the people Israel’s relations can throw “its Arab neighbors.

“The idea that this was ‘Peace in Our Time’ obviously ignored the one existential conflict in the region. It wasn’t between Israel and the Arab states, ”said Ross.

Most analysts say the deals – which Biden government officials say they want to support and even expand to more nations – can survive the current violence. After all, officials involved in drafting the agreement said no one had the illusion that such clashes were a thing of the past.

The Israeli-Palestinian conflict

Updated

May 15, 2021 at 10:43 a.m. ET

But images of Israeli police raids against Arabs in Jerusalem and air strikes that topple skyscrapers in Gaza are clearly causing nuisance.

In a statement last week, the UAE Foreign Ministry “strongly condemned” Israel’s proposed evictions in East Jerusalem and a police attack on Al-Aqsa Mosque in Jerusalem, where Israeli officials said Palestinians had been storing stones throwing them at the Israeli police.

Last month, the UAE also denounced “acts of violence by right-wing extremist groups in occupied East Jerusalem” and warned that the region “could slide into new levels of instability in ways that threaten peace”.

Bahrain and other Gulf states have condemned Israel in similar tones. In a statement by the United Arab Emirates’ foreign minister, Abdullah bin Zayed al-Nahyan, on Friday “all parties”, not just Israel, were urged to exercise restraint and pursue a ceasefire.

A former Trump official argued that public pressure from countries like the United Arab Emirates and Bahrain on Israel after the agreements carried more weight than was the case from newly official diplomatic partners. However, none of the governments involved in the agreements play a major role in efforts to achieve a ceasefire – a responsibility that has historically been assumed by Egypt and Qatar.

“It is the non-Abraham Convention Arabs who will really play a central role in ending this fire,” said Aaron David Miller, a former Israeli-Arab adviser among six state secretaries.

At an event held by the Israeli embassy in Washington, DC last month, Secretary of State Antony J. Blinken said the Biden administration “welcomes and supports” the Abraham Accords and that “Israel’s group of friends will grow even larger” next year. “

But with dozens of deaths and hundreds of injuries since then, most of them Palestinians, analysts say the prospect of other Arab nations joining the accords is poor.

“I would say it is very, very unlikely that anyone else will join the deal,” said Nasr. “It will lose a lot of dynamism and energy.”

A nation seen as a potential candidate, Saudi Arabia, has imposed some of the strongest condemnations against Israel in the past few days. A statement by the Saudi Foreign Ministry called on the international community to “hold the Israeli occupation responsible for this escalation and immediately stop its escalation measures, which violate all international norms and laws”.

Some Biden analysts and government officials say the deals were the culmination of a four-year Trump policy that included and empowered Mr. Netanyahu and isolated the Palestinians. Mr Trump’s approach, they said, nearly stifled hopes for the two-state solution pursued by several previous American presidents and tipped the balance of power between official Palestinian leaders and Hamas extremists in Gaza.

Ilan Goldenberg, a former Obama administration official, admitted that Israel had clashed with the Palestinians even under democratic governments, which had chosen a more balanced approach to the conflict than Trump’s nakedly pro-Israel stance.

And he said opportunistic rocket attacks by Hamas on Israel after the outbreak of Jewish-Arab violence in Jerusalem were not Trump’s fault.

But Mr Goldenberg argued that the current violence against Internecine in Israel “is at least partially driven by the fact that the Trump administration supports extremist elements in Israel every step of the way,” including the Israeli settlement movement.

In November 2019, for example, Secretary of State Mike Pompeo changed longstanding US policy by stating that the US did not view Israeli settlements in the West Bank as a violation of international law. (The Biden government intends to reverse this position once a government attorney review is completed.)

“They had David Friedman” – Mr. Trump’s ambassador in Jerusalem – “literally tear down walls of holy places with a sledgehammer and say it was Israeli,” Goldenberg said.

Mr Trump also moved the U.S. embassy from Tel Aviv to Jerusalem and officially recognized the city as Israel’s capital. This enraged the Palestinians, who had long expected East Jerusalem to be the capital of a future state they are building.

“Trump opened the door to Israel to accelerate house demolition and settlement activities,” Ms Hassan said. “And when that happens and you see Israel affecting it, you see the Palestinian resistance.”

Former Trump officials note that expert predictions of a Palestinian outbreak never materialized during Mr Trump’s tenure, particularly after the embassy moved, and suggest that Biden’s friendliness toward the Palestinians – including restoring that of Mr Trump canceled humanitarian aid – Trump – has encouraged them to challenge Israel.

Even some Trump administration officials said Mr Trump and others’ suggestions that the agreements represented peace in the Middle East were exaggerated.

“During my time in the White House, I always urged people not to use that term,” Greenblatt said.

Categories
World News

Rally picks up steam as market shakes off charge fears, Dow climbs 650 factors

US stocks rose sharply on Monday as government bond yields fell from last week’s highs, alleviating inflation concerns and higher interest rates undermining stock valuations.

The Dow Jones Industrial Average rose 660 points, or 2.2%, led by Boeing, which rose 6.8%. The S&P 500 gained around 2.1% as all 11 sectors traded in the green. The Nasdaq Composite, the tech heavy index that was hit hard last week, also fell 2.1%.

The 10-year government bond yield fell to 1.43% on Monday, a 3 basis point decrease from Friday and a decrease from its recent high of 1.6% on Thursday. The sudden surge in the benchmark yield has rocked stocks for the past week as rising interest rates can jeopardize the relative attractiveness of stocks and compress stock valuation by reducing the value of future cash flows.

Market breadth was strong on Monday with only about 8 stocks trading lower across the S&P 500. On the NYSE, 11 stocks rose for every stock that fell. Economic reopening games like Carnival and American Airlines were at least 3% higher due to optimism about vaccines and economic reopening. Meanwhile, high-growth technology stocks did better as interest rates fell. Apple and Tesla both rose 3%.

“Equity investors continue to view the rise in interest rates primarily as ‘a good thing’ rather than a threat, although the tree was mixed up in several stocks and other parts of the market last week,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group . “The advantages of vaccines versus the challenge of higher rates will be the theme this year.”

The Centers for Disease Control and Prevention Advisory Board unanimously decided on Sunday to recommend the use of Johnson & Johnson’s one-off Covid-19 vaccine for people aged 18 and over. The company expects to initially ship four million cans.

Last week the blue-chip Dow and the S&P 500 lost 1.7% and 2.5%, respectively. Tech-heavy Nasdaq fell more than 4% over the same period after suffering its worst one-day sell-off since October on Thursday. Technology companies rely on being able to borrow money at low interest rates to invest in future growth.

“The oversized rotation suggests that there may be a tactical reversal as returns calm down,” said Keith Parker, equity strategist at UBS, in a note. “The result should more than make up for headwinds over the course of the year, albeit with downward trends in this upward trend.”

On the stimulus front, the House passed a $ 1.9 trillion Covid Relief Act, the American Rescue Plan Act of 2021, early Saturday. The Senate will now review the legislation.

Key averages rose in February on the back of a strong earnings season, positive news on the vaccine launch and hopes for another stimulus package.

The Dow was up 3.15% in February for its third positive month in four years. The S&P 500 was up 2.61% and the Nasdaq Composite was up nearly 1% for the fourth positive month in a row.

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Categories
Business

G.M. Announcement Shakes Up U.S. Automakers’ Transition to Electrical Automobiles

China’s decision late last year to require that most of the vehicles sold there be electric by 2035 is also crucial, as GM sells more cars in that country than in the US through its joint ventures. Great Britain, Ireland and the Netherlands have announced that they will ban the sale of new gasoline and diesel vehicles from 2030.

GM has been talking about moving to zero-emission vehicles for about two years. In March last year, the modular battery technology was introduced, with which costs are to be reduced. A few months later, GM said it could reach a point where electric vehicles won’t cost more than gasoline-powered vehicles faster than previously expected.

Ms. Barra received support and input from an unexpected source – the Environmental Defense Fund, which had criticized GM in the past. The CEO shared a barbecue dinner with the group’s president, Fred Krupp, at a conference in 2015. Until last fall, they were in regular contact by phone and email.

“We were both optimistic that we could achieve common ground,” said Krupp.

In October, GM unveiled an electric Hummer pickup truck that had enough orders in one day to accommodate all of the trucks GM wanted to manufacture in the first year of the truck.

“That was another turning point,” said Parker, the chief sustainability officer. “It showed that consumers are really excited about owning electric vehicles.”

Just a few weeks later, Mr Biden was elected President-elect. And in December, GM met with its transition team, Parker said. “Our vision of an emission-free future fits very well with your vision and goals.”

At the same time, GM signed a pledge known as the Business Ambition for 1.5 Degrees to fight global warming. In early January, the company set the expected date for the electrical transition to be 2035, Parker said. On January 12th, Ms. Barra appeared at the Consumer Electronics Show explaining GM’s vision for a zero-exhaust future, but did not provide an exact date.