2025-04-23 20:35
WASHINGTON, April 23 (Reuters) - The recent shifts in asset portfolio allocations away from the dollar may represent a move from overweighting dollar assets to a more natural weighting between dollars and other currencies, including the euro, European Central Bank executive board member Philip Lane said on Wednesday. Lane told a panel discussion at an Institute of International Finance conference that U.S. assets were "priced to perfection" following President Donald Trump's election last year. Recent outflows from U.S. Treasuries may be viewed as a reallocation that "can either settle down or invite a deeper rethink," he added. Sign up here. In any case, he said the dollar would continue to far outweigh euros in most portfolios. https://www.reuters.com/business/dollar-allocations-moving-overweight-more-natural-weighting-ecbs-lane-says-2025-04-23/
2025-04-23 20:35
DETROIT, April 23 (Reuters) - General Motors (GM.N) , opens new tab is increasing production of transmissions at its Toledo, Ohio facility, shifting away from EV drive unit manufacturing toward parts for gasoline vehicles, the company confirmed Wednesday. The transmission plant supports production of light-duty trucks made in Fort Wayne, Indiana, along with other facilities. Reuters first reported that GM would increase production at the Indiana assembly plant in early April after U.S. President Donald Trump announced 25% tariffs on auto imports. Sign up here. A spokesperson for the automaker said the production shift in Toledo is not related to tariffs. "General Motors will revise production plans at Toledo Propulsion to support additional capacity of ICE (internal combustion engine) propulsion units in alignment with current market demand and manufacturing resiliency," the spokesperson said in a statement. When GM announced a $760 million investment to transform the Toledo facility into a drive unit production hub, it became its first U.S. powertrain factory repurposed for EVs. The automaker hasn't yet produced retail drive units there. "To align with current market demand and manufacturing needs, leadership has made the decision to add capacity to support propulsion units currently built at Toledo for ICE (internal combustion engines) products," Rob Morris, the Toledo plant director, said in a memo shared with workers. The memo said that one of the drive unit production lines in the facility would be transformed into a transmission line, but said there were no updates regarding the second drive unit production line. GM has made other adjustments to its EV plans including pushing back the start of EV truck production at its Orion Assembly plant in Michigan. It fell short on its EV production goal of producing and wholesaling 200,000 EVs in North America in 2024, instead ending up at 189,000 units wholesale. Separately, Trump's tariffs have prompted automakers to change or expedite investment plans. Some suppliers and automakers are looking for opportunities to expand investment in the U.S. to avoid the steep levies, while others are waiting to see if the duties stick. An analysis by the Center for Automotive Research found that Trump's 25% auto tariffs imposed in early April will increase costs by about $108 billion for automakers in the U.S. in 2025. The industry is still facing levies on automotive part imports, which are scheduled to begin no later than May 3. https://www.reuters.com/business/autos-transportation/gm-increase-production-ohio-transmission-facility-2025-04-23/
2025-04-23 20:35
WASHINGTON, April 23 (Reuters) - The U.S. Federal Aviation Administration said on Wednesday it had upgraded Thailand's air safety rating to "Category 1" a decade after a downgrade, paving the way for direct U.S.-Thailand flights to resume. Thai airlines could not launch or expand services to the United States, either directly or as a code-share partner, under the International Aviation Safety Assessment "Category 2" rating the FAA had assigned in 2015 due to a shortage of technical officers and certification problems in transporting hazardous goods. The top rating shows compliance with International Civil Aviation Organization standards. Sign up here. In 2017, Thailand resolved a significant safety concern identified through the ICAO Universal Safety Oversight Audit Program in 2015, the agency said on Thursday. Prior to late-2015, Thai Airways (THAI.BK) , opens new tab flew direct between Bangkok and New York and Los Angeles. In 2017, Thailand said it aimed to get an air safety rating upgrade by 2018. Bangkok is a regional airline hub and Thailand had more than 35 million foreign tourists last year. https://www.reuters.com/world/asia-pacific/us-reinstates-thailands-top-aviation-safety-rating-2025-04-23/
2025-04-23 20:33
April 23 (Reuters) - U.S. President Donald Trump is planning to spare carmakers from some tariffs, The Financial Times reported on Wednesday, citing two people with knowledge of the matter. Car parts would be exempted from tariffs that are being imposed on imports from China over fentanyl and tariffs levied on steel and aluminum, the report added. Sign up here. https://www.reuters.com/world/us/trump-plans-exempt-carmakers-some-tariffs-ft-reports-2025-04-23/
2025-04-23 20:28
April 23 (Reuters) - California Governor Gavin Newsom has directed state officials to step up efforts to guarantee reliable fuel supplies for the nation's biggest auto market, prompting oil companies to blame state policies for difficult business conditions and high pump prices. Newsom's letter to California Energy Commission Vice Chair Siva Gunda, dated April 21 and seen by Reuters on Wednesday, came days after Valero Energy (VLO.N) , opens new tab said it would permanently shut or restructure its refinery in Benicia, California by the end of April 2026. The Benicia refinery accounts for about 9% of the state's crude oil refining capacity. Sign up here. "I write to direct you to redouble the State's efforts to work closely with refiners on short- and long-term planning, including through high-level, immediate engagement, to help ensure that Californians continue to have access to a safe, affordable, and reliable supply of transportation fuels," Newsom wrote. He added that although gasoline demand in the state was in a gradual decline, it would exist for years to come. The governor set a July 1 deadline for the CEC to recommend changes to the state's approach to managing fuel supplies during the energy transition and asked the agency to reinforce the state's belief that refiners can operate profitably. Refiners have said they face growing regulatory and cost pressures in California, which has among the most aggressive climate change policies of any U.S. state and has a goal to ban new gasoline-powered cars starting in 2035. Gasoline prices in California are among the highest in the United States due to the state's reliance on imports from Latin America and the Middle East to offset declining state supplies. In his letter, Newsom said the Trump administration was to blame for economic instability and market turmoil that was harming oil companies. A refining trade group said that assertion was false, and instead blamed California. "Governor Newsom's letter to the California Energy Commission directing it to 'redouble' its efforts to work closely with refiners so 'they see the value in serving the California market' is laughable and a blatant effort to cover his backside," Chet Thompson, CEO of the American Fuel & Petrochemical Manufacturers, said in an emailed statement. "State policies, not the new administration in Washington, are why fuel manufacturers struggle to operate in California and why California drivers face the highest fuel prices in the country." https://www.reuters.com/sustainability/climate-energy/california-governor-seeks-help-struggling-oil-refiners-2025-04-23/
2025-04-23 20:17
Indexes up: Dow 1.07%, S&P 500 1.67%, Nasdaq 2.50% Bessent calls U.S.-China tariffs unsustainable, Trump open to negotiations Tesla, Boeing gain after quarterly results Americans' view on Trump's handling of the economy sours NEW YORK, April 23 (Reuters) - Wall Street stocks advanced on Wednesday on revived hopes for progress in the U.S.-China trade dispute and as President Donald Trump soothed fears the Federal Reserve could lose its autonomy with reassurances that he has "no intention of firing" Fed Chair Jerome Powell. All three major U.S. stock indexes pared gains by the closing bell. They gathered momentum during the session after Treasury Secretary Scott Bessent said high tariffs between the U.S. and China were unsustainable and Trump signaled he was open to easing trade tensions between the world's two largest economies. "We had such a strong open, it was really related to developments out of Washington," said Russell Price, chief economist at Ameriprise in Troy, Michigan. "That being the idea that President Trump said he has no intention of firing Jerome Powell, and that we could see a substantial decline in the tariff rates" currently levied against China. Sign up here. "So those are clearly both positives that the market was hoping to get, and they got them," Price added. Late on Tuesday, Trump dialed back his attacks on the Fed, which included threats to fire Powell. Most investors view the central bank chief as a stabilizing force in the market, which has been rattled by Trump's chaotic trade policy. "Fed independence is one of the unspoken bastions of the developed market system," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. "So to threaten that obviously had put pressure on bonds and the dollar and kind of accelerated that rotation out of American assets." First-quarter earnings season has hit full stride, with 110 of the companies in the S&P 500 having reported. Of those, 75% have beaten Wall Street estimates, according to LSEG. Analysts now see aggregate S&P 500 earnings growth of 8.4% for the Jan to March period, up from an even 8.0% as of April 1, per LSEG. Tesla (TSLA.O) , opens new tab shares rose 5.3% after Chief Executive Officer Elon Musk said he would significantly scale back his work with the Trump Administration to devote more time to running his companies. Even so, the electric carmaker posted a 71% plunge in quarterly net profit. Boeing (BA.N) , opens new tab reported a smaller-than-expected quarterly loss as the planemaker produced and delivered more aircraft. Its shares surged 6.1%.General Dynamics (GD.N) , opens new tab posted a 27% increase in first-quarter profit on sustained defense demand, but the company's business jet orders fell from the previous quarter. Its stock dropped 3.3%. The Dow Jones Industrial Average (.DJI) , opens new tab rose 419.59 points, or 1.07%, to 39,606.57, the S&P 500 (.SPX) , opens new tab gained 88.10 points, or 1.67%, to 5,375.86 and the Nasdaq Composite (.IXIC) , opens new tab gained 407.63 points, or 2.50%, to 16,708.05. Among the 11 major sectors of the S&P 500, tech (.SPLRCT) , opens new tab and consumer discretionary (.SPLRCD) , opens new tab notched the biggest percentage gains, while consumer staples (.SPLRCS) , opens new tab and energy (.SPNY) , opens new tab lagged. On the economic front, S&P Global's advance "flash" April purchasing managers' index showed business activity losing momentum and companies charging higher prices for goods and services amid mounting uncertainties. "You're going to be hard pressed to find an economist who thinks that this level of tariffs and trade protectionism is a good idea," Mayfield said. A Reuters/Ipsos poll showed just 37% of respondents approve Trump's handling of the economy, souring significantly from 42% immediately following his inauguration, where he promised to "supercharge the economy." Advancing issues outnumbered decliners by a 3.28-to-1 ratio on the NYSE. There were 43 new highs and 28 new lows on the NYSE. On the Nasdaq, 3,277 stocks rose and 1,141 fell as advancing issues outnumbered decliners by a 2.87-to-1 ratio. The S&P 500 posted 2 new 52-week highs and two new lows while the Nasdaq Composite recorded 41 new highs and 38 new lows. Volume on U.S. exchanges was 17.40 billion shares, compared with the 19.18 billion average for the full session over the last 20 trading days. https://www.reuters.com/business/us-stock-futures-jump-trump-backtracks-threats-fire-fed-head-tesla-jumps-2025-04-23/
