2024-02-27 21:03

Feb 27 (Reuters) - Apple (AAPL.O) , opens new tab has canceled work on its electric car, a source familiar with the matter told Reuters on Tuesday, a decade after the iPhone maker kicked off the project. The move draws the curtain on a plan that would have helped Apple break out into a new industry and potentially replicate the success of the iPhone. The project had seen uneven progress throughout its life and its end comes as global automakers cut back their investments in electric vehicles, whose demand has dropped significantly. Several employees working on the project will be shifted to the company's artificial intelligence (AI) division, according to Bloomberg News, which first reported the development. Apple declined to comment. "If it is true, Apple will put more focus on GenAI and that should give investors more optimism about the company's efforts and ability to compete at a platform level on AI," said Ben Bajarin, CEO of consulting firm Creative Strategies. Apple has so far held back from any big moves in AI, in stark contrast to tech giants such as Alphabet (GOOGL.O) , opens new tab and Microsoft (MSFT.O) , opens new tab, which have first-mover advantage in incorporating the breakthrough technology. Its quiet approach has sparked worries the iPhone-maker could be behind in integrating the technology into its products. That was reflected in Apple's share gain last year, which at nearly 50% was the smallest among the so-called Magnificent Seven stocks. Last month, Microsoft overtook Apple as the world's most valuable company as the iPhone maker grapples with weakness in demand for its key products, especially in major market China. Meanwhile, high interest rates have led to a slowdown in demand for usually pricier electric vehicles, prompting the industry to cut jobs and reduce production. Several major automakers, including EV market leader Tesla (TSLA.O) , opens new tab, have decided to pull back on investments, with some shifting plans to focus on hybrids instead of fully battery-powered cars. Tesla CEO Elon Musk cheered Apple's move on X social media with a post of a saluting emoji and a cigarette. PROJECT TITAN Apple kicked off Project Titan, as its car effort was known internally, a decade ago, as a wave of interest in self-driving vehicles swept through Silicon Valley. Reuters reported in 2020 that Apple was considering releasing its proposed car soon as 2024 or 2025. But progress had been bumpy even before the COVID-19 pandemic disrupted the global automotive industry. Apple had laid off 190 workers from the group in 2019 after revamping its software approach. The design of the concept car also changed from a radical, steering-wheel-free autonomous vehicle that would have been a departure from traditional automotive design to a more conventional car with advanced driver-assistance features. News of the project had initially raised hopes that Apple may replicate the success of the iPhone, whose fresh design and clean interface helped alter the handheld phone market. But even iPhone sales, the main source of the company's revenue, has started seeing a growth slowdown as rivals launch handsets with matching specs and competitive prices. Sales of iPad and Mac computers have also fallen amid broader slump in demand for expensive gadgets. https://www.reuters.com/technology/apple-cancels-work-ev-moves-staff-ai-project-bloomberg-reports-2024-02-27/

2024-02-27 20:57

CAIRO, Feb 27 (Reuters) - British maritime security firm Ambrey said it had received a report on Tuesday of an incident approximately 50 nautical miles west of Yemen's Red Sea port of Hodeidah. A merchant vessel reported that a warship was "firing", Ambrey added in an advisory note. The Houthi militia, who control the most populous parts of Yemen, have fired exploding drones and missiles at ships with commercial ties to the U.S., Britain and Israel, prompting retaliatory Western strikes on Houthi military sites. The Houthis have vowed to continue targeting ships linked to Israel in solidarity with Palestinians until Israeli forces stop their war in Gaza. Turmoil from the conflict between Israel and Palestinian Islamist group Hamas has rippled around the Middle East. Apart from the Houthi attacks on vital shipping lanes, Lebanon's Iran-backed Hezbollah group has traded fire with Israel along the Israel-Lebanon border, and Iraqi militia groups have attacked bases that host U.S. forces. The major Copenhagen-based shipping company Maersk (MAERSKb.CO) , opens new tab has warned of disruptions to container shipping via the Red Sea dragging into the second half of the year and of heavy congestion and delays for U.S.-bound goods. https://www.reuters.com/world/middle-east/ambrey-reports-incident-west-yemens-hodeidah-advisory-note-2024-02-27/

2024-02-27 20:54

HOUSTON, Feb 27 (Reuters) - BP Plc on Tuesday urged U.S. regulators to refuse Venture Global LNG's request for an extension of time to build its Calcasieu Pass export plant. BP says the plant is effectively commissioned and wants the Federal Energy Regulatory Commission (FERC) to grant it access to Venture Global's confidential commissioning documents. As of Oct. 26, 2023, all Venture Global Calcasieu Pass (VGCP) liquefaction blocks "completed commissioning and are fully operational, accordingly ... no extension is necessary," BP said in its letter to the FERC. BP's pleading to FERC follows similar requests on Monday from Repsol SA (REP.MC) , opens new tab and Galp Energia (GALP.LS) , opens new tab to require U.S. LNG exporter Venture Global to disclose commissioning reports submitted to the regulator for its Calcasieu Pass LNG project. The Arlington, Virginia-based exporter was not immediately available for comment. On Monday it said it "opposes the requests of Repsol and Galp for confidential documents and ... will not provide any such documents unless and until explicitly ordered to do so by the Commission." BP, Galp, Repsol, Shell PLC (SHEL.L) , opens new tab, Edison SpA (EDNn.MI) , opens new tab and Poland's Orlen SA (PKN.WA) , opens new tab have all raised alarm that almost two years after Venture Global started selling LNG as pre-commissioning cargoes they are yet to receive their contracted cargoes of the superchilled gas. The matter has also gone to arbitration with Venture Global insisting that it cannot move from commissioning to commercial operations unless it solves an ongoing power generation problem. https://www.reuters.com/business/energy/bp-asks-us-regulators-reject-venture-globals-permit-extension-request-2024-02-27/

2024-02-27 20:40

Feb 27 (Reuters) - Shares of legacy automakers have outpaced their electric counterparts over the last few weeks, as investors respond to company decisions to prioritize higher-margin, gas-powered models instead of pure battery vehicles. Automakers, including Ford Motor (F.N) , opens new tab, General Motors (GM.N) , opens new tab, Mercedes (MBGn.DE) , opens new tab, have scaled back on their ambitious EV plans. Electric vehicle demand has slowed of late, suggesting the transition away from traditional internal combustion engine vehicles will take longer than expected. Shares of EV pioneer Tesla (TSLA.O) , opens new tab surpassed legacy automakers for the last few years, making it the world's most valuable car company by market capitalization. But the Elon Musk-led company's shares are down nearly 20% this year after it warned of slower adoption of EVs. In contrast, GM, Stellantis (STLAM.MI) , opens new tab have climbed about 10% this year. Toyota (7203.T) , opens new tab is up 38% as the Japanese automaker has favored hybrid vehicles over EVs in the last few years. "Legacy automakers are responding to consumer behavior and market conditions which very clearly show a lack of interest in most battery EV models," CFRA analyst Garrett Nelson said. Part of the challenge for EV makers is that manufacturing and development costs, spurred by pandemic-era supply chain disruptions, have gone up even as their sales have suffered. Competition in the sector, especially from cheaper Chinese EV brands, has also heated up. In February, Ford and GM executives said that they would consider partnerships to cut EV technology costs to counter Chinese rivals in the U.S. and European markets. Additionally, higher ownership costs of new vehicles and some models losing the federal tax credits, coupled with increased borrowing rates, have deterred buyers from considering new EVs and hanging on to their ageing vehicles. EV-only manufacturers, apart from Tesla, have also seen their stock fall. Lucid (LCID.O) , opens new tab has tumbled nearly 25% this year, while Rivian's (RIVN.O) , opens new tab shares have nearly halved. Tesla's stock has a price-to-equity ratio of nearly 61 versus GM's 4.45. "EV fueling is more expensive, though of course it's not uncommon for new technologies to be more expensive than their traditional counterparts," said Anderson Economic Group author Patrick Anderson. Hertz (HTZ.O) , opens new tab, the largest U.S. fleet operator of EVs, in January said it was dumping 20,000 EVs, including Teslas for gas-powered cars, citing high repair costs and weak demand for the vehicles it offers on rent. "We think it's probably going to be at least another couple of years before a legacy automaker puts out a profitable EV," Nelson said. The bumpy economic scenario and a Tesla-initiated price war also led legacy automakers to lower prices even more, cutting into already battered margins from those vehicles. https://www.reuters.com/business/autos-transportation/hybrids-gas-vehicles-fuel-legacy-automakers-shares-past-ev-rivals-2024-02-27/

2024-02-27 20:36

LIMA, Feb 27 (Reuters) - Peru's government granted state-run oil producer Petroperu an $800 million loan guarantee to keep its operations afloat, according to a decree published on Tuesday in the country's official gazette. The decree comes a day after government reshuffled the board at the embattled firm, which has said it has spending needs of more than $2.5 billion. The government said the new financing aims to enable the firm to make payments to its suppliers. The government said it would also expand a short-term debt operation for the company for up to $500 million. According to the decree, the state oil firm must now carry out a reorganization in less than 15 working days. Once the new board is in place, it has 20 days to approve its 2024 restructuring plan. Petroperu must now also implement a voluntary retirement program within 60 days. Peru's economy minister had warned earlier this week that the company had a "huge liquidity problem," and that through financial backing and austerity measures, the government hoped to make the firm solvent again. https://www.reuters.com/markets/commodities/peru-grants-embattled-state-run-petroperu-800-mln-loan-guarantee-2024-02-27/

2024-02-27 20:24

MEXICO CITY, Feb 27 (Reuters) - Economy Minister Raquel Buenrostro said on Tuesday that Mexico will impose tariffs on steel if the United States enacts such measures first. Buenrostro said at a news conference that U.S. calls to impose tariffs on steel imports from Mexico have been politically motivated and are not good for commerce. Buenrostro met virtually earlier this month with U.S. Trade Representative Katherine Tai, who during the call asked Mexico to address an "ongoing surge" in U.S. steel and aluminum imports from Mexico and said U.S. steel and aluminum tariffs could be reinstated. The United States has alleged a lack of transparency regarding the country of origin of steel and aluminum products imported from Mexico. Mexico in recent months has used tariffs to target steel imports from China, which has been accused of selling surplus steel abroad at below-market rates, a practice known as dumping. https://www.reuters.com/markets/commodities/mexico-will-retaliate-if-us-imposes-steel-tariffs-2024-02-27/