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AstraZeneca may be subject to further import tax penalties from China
AstraZeneca said on Tuesday that it could face a fine up to $8,000,000 for suspected unpaid import tax in China. The drugmaker is working to boost its business in China, its second largest market, after scandals such as the arrest of the company's China president last summer. AstraZeneca, despite having a robust pipeline, is facing headwinds from its two largest markets: the United States and China. These include scandals in China and possible U.S. Tariffs on pharmaceuticals, as well as a trade conflict between Beijing and Washington. AstraZeneca reported that authorities in Shenzen had informed it that the unpaid amount suspected was $1.6 million. A fine between one and five times this amount could be imposed if found guilty. The company stated that "to the best AstraZeneca knows" the importation tax referred to in the opinion related to Enhertu, its breast cancer drug. AstraZeneca's core profit for the quarter ended March 31 was $2.49, beating analyst expectations. However, total revenue of $13.59bn missed analysts' estimates. In February, the company said that it could be fined up to $4.5million in China for suspected unpaid import duties, relating to cancer drugs Imfinzi, and Imjudo. It added that this probe could extend to Enhertu. AstraZeneca said on Tuesday that authorities had informed it that there was no "illegal profit" for AstraZeneca based on a separate allegation of personal information breach.
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The SSAB steel company's operating profit plunged 57% due to weak market conditions
The weak market and lower prices in North America have impacted the operating profit of Swedish steelmaker SSAB by 57%. The operating profit fell to 1,35 billion Swedish crowns (140.29 millions) from 3,16 billion crowns in the quarter January-March, compared with 3.16 billion crowns one year ago. The European steel industry is now facing increased import duties from the United States, in addition to being under pressure by cheap Chinese steel and rising energy costs. SSAB which has steel businesses in both Europe and America, stated in a press release that the tariffs imposed by President Donald Trump on the United States did not affect its business in the last quarter. This is because it benefits from the fact that the production facilities are located near major customers in both Europe and the U.S. The company stated that the outlook for the steel divisions in the second quarter was "more uncertain than normal" due to the tariffs. This quarter, the specialized high-strength producer of steels expects its Special Steels Europe and Americas divisions will ship "somewhat more" than they did in the last. It warned that prices will vary between the three divisions - from "stable", for Special Steels, to "somewhat more" in Europe and "significantly more" in Americas. SSAB stated that raw material costs would be "stable" for Special Steels, European and Americas units. However, they will be "somewhat higher", in the Americas unit. $1 = 9.6232 Swedish Crowns (Reporting and editing by Rashmi D'Souza and Savio d'Souza in Gdansk)
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Aluminum producer Norsk Hydro's core profit misses the forecast and cuts extrusions expectations
Norsk Hydro, a Norwegian aluminium manufacturer, reported a 76% increase in its first-quarter profit, mainly due to higher metal prices. It also reported that it had slightly missed estimates. However, the company cut its outlook for the extrusion segment because of weaker downstream demand. Due to increased uncertainty, the company has revised its 2025 adjusted annual earnings before interest taxes, depreciation, and amortization (EBITDA), from 4.5 to 5.5 billion Norwegian crowns to approximately 4.5 billion Norwegian Crowns ($433.97 millions). Hydro said that if the global metals research company CRU's demand growth forecasts are delayed further, Hydro estimates adjusted EBITDA to be between 3.5 billion and 4.0 billion Crowns. During the quarter of January-March, the downstream aluminium market faced headwinds due to weak demand in Europe and North America and reduced recycling margins. EBITDA adjusted rose from 5.41 billion crowns to 9.52 billion crowns between January and March, compared with 5.41 billion crowns the previous year. According to a consensus compiled by the company, analysts expected a core profit to be reported of 9.86 billion Crowns. The U.S. return to tariffs on aluminum has disrupted trade flows, pushed physical market prices to new highs and increased cost pressures. The new levies of 25% have made it more expensive to import foreign metal. As the U.S. is heavily dependent on imports - Canada alone supplies over two thirds of the country's aluminium - the new levies are making it more costly to bring in foreign material. Hydro CEO Eivind Kallevik stated in a press release that the conflict over trade is unlikely to have a direct impact on the company. "We closely monitor the situation and are ready to adapt to changes in the market, especially if reduced confidence among consumers leads to greater economic uncertainty." Barriers in the West, which have lifted regional premiums to curb low-cost competition and helped companies like Hydro to temporarily benefit from record-breaking aluminium production by Chinese smelters. Hydro stated that it was focused on optimizing the North American value chain and securing European access for its Norwegian operations. ($1 = 10.3693 Norwegian crowns)
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Dollar steadies as US auto tariffs are lifted, but stocks fall
The dollar and stocks both edged up on Tuesday, as the Trump administration softened some tariffs in response to automakers' pressure. This comes ahead of an important week for economic data. Officials said that the U.S. will take steps to reduce the impact on domestically produced cars of foreign parts, and prevent tariffs on imported cars from piling up. The European and S&P500 futures both rose by 0.1%. However, the gains were not significant as China's levies remain high. The Asia session was slowed by a public holiday in Japan. However, the U.S. Dollar rose broadly, even against the Canadian dollar which fell a bit. Mark Carney's Liberals won Monday's elections in Canada, but they fell short of a majority government. The dollar is still struggling to recover from its recent losses, despite some rollbacks on Trump's tariffs. The euro is on track to have its biggest monthly gain against the dollar since nearly three years. Meanwhile, the greenback has seen the most significant drop in the Swiss franc in the past decade, with a 6.7% decline. The markets were affected overnight by the statement made by U.S. Treasury Sec. Scott Bessent to CNBC that it was up to China to "de-escalate" its tariffs. There are also growing concerns about permanent damage to supply chains if there is no breakthrough. China has made some concessions, but has not yet introduced any stimulus measures. They are hoping that Washington will blink first. Hong Kong's Hang Seng index rose 0.3% during afternoon trading, while the blue-chip index on mainland China fell 0.2%. J.P. Morgan analysts stated in a report that the first-quarter U.S. jobs and GDP figures for April are expected to be boosted by purchases made in advance to avoid new taxes. However, a decline in China shipments indicates a reckoning could be coming soon. The analysts warned that "the clock is ticking" on the hard data resilience. They highlighted a 42% drop in China's shipments to the U.S. from peak to trough in the last 10 days. This, if it continues, would have a ripple effect throughout supply chains. "A worrying decoupling between U.S. and China trade appears to be underway. We expect the damage will increase in coming weeks and month." In addition to the U.S., Europe will be reporting inflation data starting with Spain and Belgium on Tuesday. They will also report major corporate earnings. BP, Adidas Coca-Cola General Motors, Visa and Coca-Cola are all due to release their earnings reports on Tuesday, while Apple, Microsoft Amazon, Meta Platforms, and Meta Platforms will report at the end of this week. Gold fell 1%, to $3305 per ounce. Brent crude fell 1% to $65.21 per barrel. Treasuries were not traded in Asia, leaving benchmark 10-year yields unchanged at 4,206%. Futures prices remained largely stable.
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Volvo Cars will cut costs by $1.9 billion as earnings fall
Volvo Cars, a Swedish automaker, announced cost reductions of 18 billion Swedish crowns (1.8 billion dollars) on Tuesday after its operating profit dropped sharply amid the difficult automotive market conditions. The operating profit of the company, owned by China's Geely in majority, was 1.9 billion Swedish Crowns from January to March, compared with 4.7 billion crowns the previous year. The company announced that the cost reductions, which are part of its new "cost-and-cash action plan", include layoffs, and a greater decrease in investment than previously expected. It also said it had withdrawn the financial guidance for the following two years. In recent months, the company's shares have fallen to record lows as it struggles with rising tariff pressures and the slowdown of electric vehicle demand. Volvo made an announcement in a first indication that it was taking action to remedy the situation. Unexpectedly, This month, CEO Jim Rowan was fired. Bring back Former CEO Hakan Samuelsson and, a few days later, also replacing Its CFO. Samuelsson, in a Tuesday statement, said that given the turmoil in the market we needed to improve our cash generation and reduce our costs. He added: "While there is still a lot of work to be done, we are focusing on three key areas going forward: profitability, electrification, and regionalisation." ($1 = 9,6177 Swedish Crowns) (Reporting and editing by Terje Solsvik, Marie Mannes)
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Finland supports EU goal of reducing emissions by 90% by 2040
Finland's State Secretary for Climate said that the EU should aim to reduce net greenhouse gas emissions by 90% in the EU by 2040. This comes as the governments prepare for the next EU climate goal. The EU member states are waiting for a proposal by the European Commission on the bloc's climate goal 2040. The Commission was planning to propose a 90 percent reduction in net emissions last month. However, it delayed its proposal due to pushback from countries and legislators who are worried about the impact of the goal on struggling European industries. Mika Nykanen, in an interview about the 90% commitment that the EU's independent advisors had also recommended previously, said: "We think it is a good goal." "We need a solid, attractive investment environment in Europe. If we change our big targets or policies, this will create uncertainty for investors and businesses." The EU's environment ministers will meet in Warsaw, Poland on Tuesday. Although the 2040 goal is not part of the official agenda for their meeting, Ministers are expected discuss it informally. Italy, Denmark, the Netherlands, and Slovenia are among the governments that oppose the 90% goal. As a result of the opposition, the Commission has begun to look at ways that it can soften its 90% target, as previously reported. This includes counting international carbon credits toward the target. This could weaken efforts to reduce CO2 from domestic industries. The new German government backed this idea in a statement made earlier this month. However, it said that credits should only cover three percentage points towards the 90% target. A government source stated that France would be interested in the idea, provided there were safeguards to guarantee any international carbon credit delivered real emission reductions in other nations. Nykanen stated that Finland had not suggested such flexibility, but he could understand the concerns of the poorer EU nations or those who are struggling to switch over to cleaner energy about their contribution at the national level to the EU's goal. He said that there would be "difficult negotiations" on how to divide this share. Every country is concerned and has fears. Wopke hoekstra, the EU's climate commissioner, has stated that he will now propose the climate target for 2040 before summer. The EU has already made a legally-binding commitment to reduce its net greenhouse gas emission by 55% from 1990 levels by 2030 and eliminate them by the year 2050. (Reporting and editing by Lincoln Feast; Additional reporting by Anne Kauranen)
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US data and tariff concerns are a focus as gold prices fall.
The gold price dropped by nearly 1% Tuesday, as easing trade tensions between America and its trading partners weakened the metal's appeal as a safe haven. Investors waited for U.S. data on the economy to determine the Federal Reserve policy direction. As of 0425 GMT, spot gold was down by 0.8%, at $3,314.99 per ounce. U.S. Gold Futures fell 0.7% to $3325.10. The risk environment has improved in recent months, as market participants are encouraged by the optimism that the worst trade tensions could be behind us due to encouraging rhetoric about trade deals," said IG Market Strategist Yeap JunRong. U.S. Treasury secretary Scott Bessent stated on Monday that several top trading partners made "very good proposals" to avoid U.S. Tariffs. India is likely to be the first country to reach a final agreement. Bessent said that China's recent decision to exempt some U.S. products from its retaliatory duties showed a willingness for trade tensions to be de-escalated. U.S. President Donald Trump's administration will also move to reduce the impact of his automotive tariffs by alleviating some duties imposed on foreign parts in domestically-manufactured cars. A majority of economists surveyed in a recent poll believe that there is a high risk the global economy could slip into recession. Many also said Trump's tariffs had damaged business confidence. Due to increased uncertainty, the price of gold, which is traditionally seen as a hedge to political and financial instabilities, reached a record high last week at $3,500.05/oz. Investors will be watching economic data, such as the U.S. Job Openings Report later that day, the Personal Consumption Spending report on Wednesday, and non-farm payrolls on Friday. Rong stated that "Longer term structural tailwinds will likely keep the upward trend in place, as long as central banks of emerging markets continue to diversify their reserves." Spot silver fell by 0.5% to $32.98 per ounce. Platinum dropped 0.2% to $884.56, and palladium was down 0.4% to $945.47.
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London metals prices are rising as the market waits for an update on US-China trade talks
Investors were glued to the news of developments in U.S. China negotiations as well as a flurry of U.S. Economic Data. As of 0340 GMT, the benchmark copper price on London Metal Exchange was $9,378.5 per metric ton. This week, the U.S. Initial Jobless Claims and Personal Consumption Spending (PCE) Data are due. These data could influence metal prices because they can affect Federal Reserve rate decisions as well as economic outlook. Donald Trump, the U.S. president, said that progress had been made in negotiations with China. Beijing denies that trade talks have taken place, and U.S. Treasury secretary Scott Bessent has not backed Trump's claim about tariff talks with China. China has exempted some U.S. imports of its retaliatory duties, a sign the trade war may be easing. Last week, the Trump administration signalled its willingness to deescalate. A trader stated that "the trajectory of the U.S. China trade dispute remains undetermined and the market eagerly awaits a clear indication on its future course." "If tensions continue to escalate, they could have far-reaching effects, possibly triggering a worldwide recession." Other London metals saw aluminum fall 0.1%, to $2.431 per ton. Zinc rose 0.5%, to $2.645, while lead increased 0.1%, to $1.968, and tin rose 0.2%, to $32,085; nickel fell 0.3%, to $15.570. The Shanghai Futures Exchange's (SHFE) most traded copper contract rose by 0.1%, to 77.420 yuan per metric ton ($10,645.88). The Shanghai Futures Exchange's (SHFE) warehouses, which monitor inventories of CU-STX and SGH metals, have seen a 32% drop week-on-week. SHFE aluminum fell by 0.1%, to 19,915 Yuan per ton. Zinc rose 0.1%, to 22,535 Yuan. Lead fell by 0.2%, to 16,890 Yuan. Nickel fell by 0.2%, to 124130 yuan. Tin lost 0.4%, to 260460 yuan. $1 = 7.2723 Chinese Yuan Renminbi (Reporting and editing by Violet Li, Lewis Jackson and Rashmi aich).
Harbinger, an EV startup, launches a hybrid van platform in order to attract more fleet clients
Harbinger, a startup that produces electric vehicles, launched on Monday a new platform of gasoline-electric hybrid vans for medium-duty trucks. The company is looking to attract more fleet customers.
Hybrid vehicles make it easier for fleets to transition from gasoline vehicles to electric ones by reducing their dependence on expensive charging infrastructure. They also offer benefits like a longer range and reduced fuel consumption.
Harbinger CEO John Harris said that the hybrid chassis is a good fit for fleets with long routes, unpredictable days and limited charging access. It's also a good choice for those who have multi-shift schedules, middle-mile distribution, or longer routes.
Harbinger, a new vehicle platform with a 500-mile range between charges and electric motors that drive the wheels, is backed by Capricorn Investment Group, an early Tesla investor, and Tiger Global. The gasoline engine will recharge the battery. Customers can choose to plug in the vehicle to charge the batteries.
Harbinger’s platform is set to be delivered in the next year. It's a vehicle framework with all of its main components, including an electric motor and battery, as well as steering, brakes and engine.
It is common for a company to send its chassis to customers or dealers, who will then add a body with the help of another company. This is essentially the process used in the industry.
Harbinger announced last week that Panasonic, a supplier to Tesla, will be its supplier for EV batteries. Panasonic, a supplier to Tesla, will be the company's vendor for EV battery cells.
After factoring in federal incentives provided under the Inflation Reduction Act, the startup claims that its new hybrid platform is priced at a competitive level with diesel models.
Harbinger has also launched a program that will offer buyers a price reduction similar to the IRA Tax Credits if the Trump Administration removes them.
(source: Reuters)