2025-01-21 10:20
Volkswagen warns tariffs would hit US consumers, auto industry Volkswagen says it is making $10 bln-plus investments in US BMW says it exports more vehicles from US than it imports there BERLIN, Jan 21 (Reuters) - Volkswagen (VOWG_p.DE) , opens new tab on Tuesday warned against the "harmful economic impact" of tariffs that U.S. President Donald Trump is proposing on imports from Mexico, where Europe's top carmaker operates a major factory. The comments by the German autos giant, already grappling with high costs and cheap Chinese competition at home, reflect major uncertainty following Trump's threat to possibly impose duties of 25% on goods from Mexico. While a firm decision has not been made, Trump said such tariffs could become effective from Feb. 1. "The Volkswagen Group is concerned about the harmful economic impact that proposed tariffs by the U.S. administration will have on American consumers and the international automotive industry," a Volkswagen spokesperson said in an emailed statement to Reuters. "We value collaboration and open dialogue. The Volkswagen Group looks forward to continuing its longstanding and constructive partnership with the U.S. administration," the spokesperson added. Volkswagen shares were down 0.8%, as European rivals also declined on the prospect of tariffs. Volkswagen's Puebla auto factory is Mexico's largest and one of the biggest in the Volkswagen Group, making nearly 350,000 cars in 2023, including the Jetta, Tiguan and Taos - all for U.S. export. Stifel analysts have reckoned that some 65% of the cars that Volkswagen sells in the United States would no longer be competitive if duties were added to Mexican imports. In an effort to showcase its commitment to U.S. sites, Volkswagen said it was making total investments of more than $10 billion in the country, roughly split between its Chattanooga plant and a joint venture with Rivian (RIVN.O) , opens new tab. "In the discussion with the new U.S. president, it is also clear that economic strength is the best response to the latest challenges," Hildegard Mueller, who leads the German car sector's lobby group VDA, said on Tuesday. Volkswagen has been in close contact with the Trump administration over tariffs, according to two people familiar with the matter. Last week, BMW (BMWG.DE) , opens new tab CEO Oliver Zipse was in South Carolina, where the German automaker has a plant, and received an award from the state's Republican governor for its contribution to the economy. "BMW assembles more vehicles in the U.S. than we sell in the U.S. and exports more vehicles from the U.S. than we import into the U.S.," it said, adding in 2023 it sold more than 396,000 vehicles there. Sign up here. https://www.reuters.com/business/autos-transportation/volkswagen-looks-forward-working-with-us-govt-amid-tariff-concerns-spokesperson-2025-01-21/
2025-01-21 10:19
KAMPALA, Jan 21 (Reuters) - The Ugandan shilling traded stable on Tuesday, supported by hard currency inflows from non-governmental organisations (NGOs), traders said. At 0919 GMT commercial banks quoted the shilling at 3,667/3,677, compared to Monday's close of 3,668/3,678. Sign up here. https://www.reuters.com/markets/currencies/ugandan-shilling-stable-vs-dollar-supported-by-charity-inflows-2025-01-21/
2025-01-21 07:54
JAKARTA, Jan 21 (Reuters) - A landslide in Indonesia's Central Java city of Pekalongan killed 16 people and injured 10, an official at the country's regional disaster mitigation agency and police said on Tuesday. The landslide was triggered by heavy rains in the area, Bergas Caturasi, an official at the country's regional disaster mitigation agency told news channel Kompas TV. The search for those missing has been hampered by rain, Bergas said. "The search continues on, because we don't have a lot of time. We're in a race with the weather," he said. (This story has been refiled to provide Bergas' full name in the first reference in paragraph 2, and delete extraneous material in paragraph 3) Sign up here. https://www.reuters.com/world/asia-pacific/landslide-kills-16-indonesias-central-java-official-says-2025-01-21/
2025-01-21 07:50
Jan 21 (Reuters) - British crypto miner Argo Blockchain (ARB.L) , opens new tab on Tuesday said Thomas Chippas is resigning from his roles as CEO and director. This marks the firm's second CEO change in less than two years, following Chippas' appointment to the role in November 2023 when he replaced founder and CEO, Peter Wall. Jim MacCallum, who became CFO in April 2023, will now lead the company on an interim basis. Argo intends to engage an executive search firm to assist the search for its CEO, it added. The company, founded in 2017 by Wall, has faced significant challenges in recent years, including selling its Helios mining facility at the end of 2022 to prevent bankruptcy. Sign up here. https://www.reuters.com/markets/currencies/uks-argo-blockchain-says-ceo-thomas-chippas-step-down-2025-01-21/
2025-01-21 07:47
Jan 21 (Reuters) - Santos (STO.AX) , opens new tab has effectively stalled plans for a Western Australian oil and gas project worth over A$3 billion ($1.87 billion), sending minority partner Carnarvon Energy's (CVN.AX) , opens new tab, shares tumbling on Tuesday. Carnarvon's shares closed about 23% lower, ending the day as the top loser on the local all ordinaries index (.AORD) , opens new tab, after the firm said Santos had dumped plans to buy an oil production and storage vessel at the Dorado project and expressed intentions against starting engineering and design work. Shares of Santos, which owns 80% of the Dorado project, ended 2.2% lower on Tuesday. Carnarvon and Taiwan's state-owned CPC Corporation own 10% each. "After a detailed assessment of all relevant factors, Santos recommended to the joint venture that the development concept for Dorado be revisited after further evaluation of Bedout Basin resources," a spokesperson for Santos told Reuters. Santos' primary focus for 2025 remains delivering on its crucial Barossa and Pikka gas projects, it added. Its CEO Kevin Gallagher had warned in August and again at an investor briefing in November that the oil and gas major would put a high priority on shareholders returns. CPC Corporation did not immediately respond to a Reuters request for a statement. The project's slowdown poses a major risk to Carnarvon, as its primary asset is its 10% stake in the Dorado project. The company has been, for some time, facing shareholder angst over its valuation, with the Australian Financial Review reporting last year that it had given its bankers the go-ahead to seek bids for the sale , opens new tab of the company or its assets. ($1 = 1.6051 Australian dollars) Sign up here. https://www.reuters.com/markets/commodities/santos-delays-dorado-oil-gas-project-decision-partner-carnarvon-shares-tumble-23-2025-01-21/
2025-01-21 07:44
TOKYO/SEOUL, Jan 21 (Reuters) - Shares of Japanese automakers and South Korean battery makers fell on Tuesday, after U.S. President Donald Trump said he could impose tariffs on Canada and Mexico soon and revoked the previous administration's executive order on electric vehicles. But Chinese manufacturers bucked the trend, with stocks opening higher after Trump did not target China in his inauguration speech or immediately impose tariffs on Beijing as previously promised. Shares of South Korean shipbuilders rallied with the expectation that Trump's plans to increase gas and oil production would spur demand for transportation vessels. The volatility in Asian shares following Trump's inauguration underscores how policy changes under Trump could affect major manufacturers in some of Washington's closest allies in the region, such as Japan and South Korea. These countries' automakers and suppliers are already grappling with the transition to EVs and intense competition from fast-rising Chinese rivals. Trump indicated potential 25% tariffs on Canada and Mexico, potentially starting on Feb. 1. This threat looms over Asian manufacturers as Trump aims to reduce the U.S. trade deficit. Mexico in particular has long been a low-cost manufacturing hub for automakers, including Asian heavyweights. Shares of Honda Motor (7267.T) , opens new tab, Japan's second-biggest automaker, ended down 0.3% at 1,478 yen after giving up early gains. Honda sends 80% of its Mexican output to the U.S. market, and its chief operating officer Shinji Aoyama warned in November it would have to think about shifting production if the U.S. were to impose permanent tariffs on imported vehicles. Shares of Mazda Motor (7261.T) , opens new tab, which exported about 60% of around 209,000 vehicles produced at its plant in Guanajuato, Mexico, to the U.S. in 2024, ended down 2.0% after Trump's comments. Mazda will assess what impact potential duties would have on imports from Canada and Mexico, a company spokesperson said. 'GREAT CONCERN' Shares of Nissan Motor (7201.T) , opens new tab recovered from mid-morning losses to end 1.2% higher, bucking the downtrend. Nissan has two plants in Mexico, where it makes the Sentra, Versa and Kicks models for the U.S. market. It exports about 300,000 vehicles to the U.S. a year, Chief Executive Makoto Uchida said in November. The Trump administration's economic policies are of great concern to major countries in Asia, which rely on exports for their economic growth. "A slowdown in the U.S. and global economies due to additional tariffs and other measures will worsen the Japanese export environment," Takahide Kiuchi, executive economist at Nomura Research Institute, said in a note to clients, comments that could likely be applied to other countries in the region. South Korea's Hyundai Motor (005380.KS) , opens new tab and sister automaker Kia (000270.KS) , opens new tab which produce vehicles in Mexico, pared early gains of as much as 2.2% and 4.3%, respectively. They closed flat and down 0.96%, respectively. The South Korean duo said in a statement its production there was part of its long-term, global strategy, adding it was committed to adapting operations to the international environment. BATTERY MAKERS, SHIPBUILDERS MIXED Shares of South Korean battery makers dropped, with LG Energy Solution falling 4.3%, while SK Innovation (096770.KS) , opens new tab lost 3.7%. Trump revoked a 2021 executive order signed by his predecessor, Joe Biden, that sought to ensure half of all new vehicles sold in the United States by 2030 were electric. The move is expected to deal a blow to Korean battery suppliers for Tesla (TSLA.O) , opens new tab, General Motors (GM.N) , opens new tab, Ford (F.N) , opens new tab and other major automakers, which have been building new battery factories in the United States to benefit from the previous administration's subsidies. Trump issued an order on Monday for the U.S. to resume processing export permit applications for new liquefied natural gas (LNG) projects, part of an effort to dismantle his predecessor's climate policies. Trump previously said the United States' shipbuilding industry is in need of South Korea's support. South Korea's shipbuilding sector rallied. HD Hyundai Mipo (010620.KS) , opens new tab soared 9.7%, while HD Hyundai Heavy Industries (329180.KS) , opens new tab rose 6%. Sign up here. https://www.reuters.com/markets/asia/asian-car-battery-makers-hit-trump-gets-work-2025-01-21/
