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Sources: Italy refuses to tighten restrictions on Chinese shareholders when Pirelli calls for it
Sources said that the Italian government has refused to heed Marco Tronchetti Provera, Pirelli's vice-chairman and executive vice-chairman's request for tighter restrictions on Pirelli's Chinese investor. Sinochem, a Chinese state-owned company, is Pirelli's biggest investor. Sinochem holds 37% of Pirelli while Tronchetti Provera owns 27.3% through its Camfin vehicle. Tronchetti-Provera, the company's CEO for over three decades, is Tronchetti-Provera. Sinochem and Pirelli are at odds, with Camfin claiming that Sinochem's substantial holding is a threat to Pirelli’s ambitions of expanding its business in the United States. Washington has cracked down on Chinese automotive technology by banning software and hardware that are controlled by Chinese companies from being used in U.S. roads. Two sources with knowledge of the matter claim that Tronchetti Provera has lobbied the government to take additional action to limit Chinese influence at Pirelli by strengthening the restrictions Rome imposed in 2023 on Sinochem through the golden powers rules designed to protect strategic assets. Sources, who asked not to be identified due to the sensitive nature of the issue, said that the administration of Prime Minister Giorgia Mello has, so far, rejected these calls. Rome's cautious approach is partly due to concerns that it will rely too heavily on its golden power, according to one source. This comes at a time where Italy faces a dispute with UniCredit regarding the way the bank uses this tool when vetting financial deals. All parties refused to comment. Last November, the government launched an investigation into whether Sinochem executives' presence on the board of the tyremaker was in violation of these restrictions. Second source: The government is currently conducting an investigation and will first check to see if there are any violations of the existing restrictions before taking a more aggressive stance against Sinochem. FAR APART Emanuele Orsini is the leader of Italian business lobby Confindustria, of which Pirelli has been a prominent member. He called on the Italian government to defend Pirelli's autonomy. Orsini stated on Wednesday that "part of Pirelli's shares, which are now in the Chinese government's hands, do not approve the balance sheets, and therefore, Pirelli is jammed up." Orsini said in a previous statement on Tuesday that Sinochem should reduce its stake in Formula One tire supplier Pirelli below 25%. Camfin Sinochem have failed to reach an agreement on governance. The Chinese company called a Pirelli proposal to solve problems "seriously unjust", while Camfin claimed that Sinochem’s approach might lead to the breaking of the shareholder agreement between the two biggest investors. If the agreement is dropped, Sinochem, Camfin, and other shareholders will be able to present their own slates for Pirelli's annual general meeting (AGM), with one of these parties potentially taking control of Pirelli’s board. Tronchetti Provera, according to two separate sources, was counting on additional government support via golden powers in case of a final confrontation with Sinochem during the AGM. Pirelli continues to post good results, despite the ongoing challenges in the automotive industry. In the first quarter of this year, its net profit increased by 27% while revenues rose by 4%. Reporting by Giuseppe Fonte and Giulio Piccari, with additional reporting from Angelo Amante and Giselda Vasgnoni. Editing by Giselda Varnini and Keith Weir.
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Nearly 100 people are missing after flooding in a Nigerian town for a week
The national emergency agency announced on Wednesday that at least 98 persons are still unaccounted for, in addition to the 160 people who have been confirmed dead, a week following floods in a central Nigerian town. Hopes of finding survivors are fading. In one of the worst floods ever to strike Africa's largest country, heavy rainfall in Mokwa, 270 km west of Abuja, unleashed water that destroyed homes and overwhelmed drainage systems. Damage to roads and bridges is hampering access despite the fact that search and rescue operations are continuing, according to the National Emergency Management Authority. The NEMA has also enlisted assistance from the Nigeria Red Cross and the police, as well as the army. Teams are searching for missing people. Overcrowding, contaminated water and overcrowding are all factors that increase the risk of disease outbreaks. Habiba Abdallah, a resident of 27 years, told reporters that four of her children were washed out by the floods. She said that, like many other relatives, she still hoped that the bodies will be found. My children disappeared in an instant. "We haven't even found them yet, but are still trying to recover their remains," she said by phone. The United Nations Children's Fund said that it has deployed a team in Nigeria to provide essential health services, including for pregnant women. Floods are common in Nigeria during the rainy seasons, which usually begin in April and end in October. (Written by MacDonald Dzirutwe, edited by Aidan Lewis).
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China's new tracking system increases scrutiny of rare earth magnets
Three sources confirmed that China has implemented a tracking system in its rare earth magnet industry, as export restrictions are beginning to isolate customers from around the globe. Two sources briefed on the issue and two others familiar with it said that the national tracking system went into effect this week and requires producers to provide extra information online, including trading volume and client names. China, the world's biggest rare earth magnet exporter and supplier, in April, placed export restrictions on several magnets and seven medium-to-heavy rare earth elements. Exporters were required to obtain licenses. The delays in getting approvals has disrupted supply chains, affecting automakers, semiconductor firms and others. Global automakers have already begun to shut down some production lines, as they run out of reserves. Beijing announced high-level plans in June to create an information tracking system for rare earths products. However, the subject was not mentioned again until this week, according to a source familiar with the issue. China's export restrictions on rare earths, magnets and other products - in which it has a near monopoly - may become permanent. In the U.S., and elsewhere, there was hope that this would be eliminated as part of the trade truce reached in Geneva last week. Exports tend to gradually rebound in cases where China imposes export restrictions on metals. This is because exporters are required to apply for and receive licenses. Tim Zhang, the founder of Edge Research in Singapore, said: "Our current hypotheses is that China will continue to control its exports on rare earths as it's an ace card China can hold." Beijing's goal is to strengthen its control of the sector and crackdown on illegal mining, smuggling and tax evasion. A fourth source, who was also briefed about the issue, said that Beijing has a long-term plan to track all rare earth production chains, not just magnets.
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Thames Water's creditors are aware of a "short window" to save the company.
Thames Water's senior creditor said that there was a "short window" to a market-led recovery of the water company, after U.S. Private equity firm KKR withdrew from a multibillion pound financing plan on Tuesday. The creditors announced on Wednesday that they had presented a long-term solution to the problems of Thames Waters. The water company in Britain, the largest, is heavily indebted. On Tuesday, KKR pulled out of an equity investment worth about 4 billion pounds. The group of senior creditors said that they were stewards with a track record and could provide "substantial new investment" in order to turn the company around under a new leadership. The Creditors stated that Thames Water needed an urgent and fundamental reset. There was a short window of time in which a solution based on the market could succeed. According to a source near the creditors, corporate troubleshooter Mike McTighe is providing advice to them. He could be a candidate to become chairman if this proposal succeeds. In March, Thames Water agreed to delay a challenge against the regulator's decision about how much it can increase customer bills until it had explored the possibility of raising equity. This deferral will expire at the end of next month. Thames Water's spokesperson declined to comment. When it announced on Tuesday that KKR was leaving, Thames Water said that they would "progress the discussions on senior creditors' plans with Ofwat, and other stakeholders". $1 = 0.7389 pounds (Reporting and editing by Kate Holton; Paul Sandle)
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EIB pledges 15 billion Euros to protect EU water resources
The European Investment Bank announced on Wednesday that it would invest 15 billion euro ($17 billion) over the next 3 years in projects to reduce water pollution and prevent water waste. The European Union's lending arm's commitment is part of a strategy announced by the bloc on Wednesday to combat water shortages, droughts, and the pressures on water resources from pollution, farming, and sprawling urbanisation. Edouard Perard of the EIB's water division said that the bank will distribute the pledged investment between 2025-2027 mainly in the form loans with the goal of mobilizing another 25 billion euros from investors. The funding will be targeted at large infrastructure projects and those that restore or use natural eco-systems to manage water supplies as well as emerging water technologies. He said, "This is the place where water meets business." It's only by developing the technologies of the future that we will be able meet these water challenges. Data from the EU’s European Drought Observatory shows that around 40% of Europe is now under a drought alert, and 1.6% are in a more severe "alert", including parts of Greece. Poland, and Italy. Jessika Rosawall, EU Environment Commissioner said: "Water is different from any other resource. We face enormous stress in Europe and around the world." The Commission will propose water-saving standards and minimum standards for data centers to help improve their resilience to water stress. It has scaled back the plans in an earlier version of the strategy that were previously reported, to provide new EU subsidies for farmers who invest in water conservation, when the huge farm subsidy program is renewed. According to the EU, an additional 23 billion Euros per year is required in order to implement their existing water regulations that regulate pollutants and waste water treatment.
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Autoliv tries to avoid disruptions caused by China rare earths
Autoliv, the largest manufacturer of airbags in the world, and seatbelts has set up a taskforce to combat China's You can restrict yourself to certain areas. The CEO of the company said that the group is focused on exporting rare earth magnets and doesn't expect a production halt in the next few weeks. CLEPA, the European association of auto suppliers, warned on Wednesday that more shutdowns could be expected due to the shortage of rare Earths caused by China’s export restrictions. Autoliv's factories are still operating, according to CEO Mikael Bratta in an interview at the group strategy update. When asked about rare earth mineral, he replied: "We have all our hands on deck to tackle all of these challenges." Bratt continued, "I believe we are doing a great job in finding ways to fix it, whether through resourcing or material changes, and also with permits, because it is not impossible to obtain the export permit either." China, which controls 90% of the global processing capacity for rare earth magnets has announced that it will increase its production. Cooperate further Export controls are a major concern for many countries, as shortages threaten to close auto and semiconductor manufacturers in Europe and India. Many European companies are Looking to Invest Bratt stated that Autoliv does not anticipate making major investments in the U.S. in the near future, as tariffs continue their downward trend. Autoliv announced on Wednesday, in conjunction with its Capital Markets Day, that it would aim to keep capital expenditures below 5%. Bratt stated that it was difficult to make capex decisions in the current situation. "You have to know the future tariffs and how they will affect you for a long time," he said. You need stability in all of this. You can then make a decision. Marie Mannes is reporting, Louise Breusch Rasmussen is writing, Stine Jacobsen, Terje Solsvik, and Chizu Niyama are editing.
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Seven dead after stampede outside Bengaluru Cricket Stadium in India, TV channels report
Television channels reported that at least seven people died in a stampede in Bengaluru in India, as a celebration of Royal Challengers Bengaluru winning the Indian Premier League was taking place. Bengaluru defeated Punjab Kings in Tuesday's final match of the tournament. Television channels showed that thousands of people, many waving the red flag of the team, lined up the streets in front of the Chinnaswamy Stadium, in the center of the city, as the cricket team arrived in a bus at the venue. After the stampede, a policeman carried an injured spectator into an ambulance while people gathered round a second person lying on the ground. In India, large crowds can cause accidents such as stampedes and other incidents. A stampede killed at least 30 people during the Maha Kumbh Hindu Festival in January. Tens of millions of Hindus gathered on its auspicious day to dip into sacred waters. (Reporting and writing by Tanvi Mehta; editing by YPrajesh).
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Britain's sunny Spring brings bumper strawberries
Growers say that the strawberry season in Britain has started early this year, thanks to "near-perfect" spring conditions of warm days and cool nights, with high levels of sunshine. This year, the favourable weather conditions meant that sweeter strawberries with larger and better-shaped shapes arrived earlier in supermarkets and at lower prices. James Miller, commercial director at Maidstone-based WB Chambers Farms in southeast England, said that regular daytime temperatures of 20 degrees Celsius in May, dropping to 9 C over night, and high light levels, were key to an exceptional early season harvest. "It's really helped to develop the plants and produce the large and sweet berries we have at the moment," said the man. The warm, sunny weather this year has been a welcome addition to strawberry production. Tesco, Britain’s largest supermarket group, announced late last month that it had purchased extra strawberries from UK strawberry farmers and reduced the price of 400g punnets for shoppers from 2,50 pounds ($3.38) down to 1,50 pounds. This year, it is expected to sell 25% more strawberries than last. Miller stated that the conditions for fruit production this spring are very different from last year, when Britain had a colder and wetter start to its growing season. He said that all farmers understand the need to adapt to climate changes and to be ready for new circumstances. We must invest in technology. "We have to invest in the technology." Miller welcomed the news the government was resetting its trade relations with the European Union. This should make exporting easier. The sooner an agreement is reached, the better. He said, "If this was the summer, this would be great." $1 = 0.7389 pounds (Reporting and writing by James Davey; additional reporting by Liza Premiyak, editing by Alexandra Hudson).
US auto tariffs threaten global industry with higher prices and job losses
The announcement by Donald Trump of a 25% auto import tariff sent shockwaves around the globe on Thursday. Global carmakers warned that prices would rise immediately, and dealers expressed concern about job losses in large auto-exporting nations, including many U.S. allies.
The new tariffs are expected to lead to a second round of large-scale U.S. duties that will be imposed next week. The auto tariffs could increase the cost of an average vehicle by thousands of dollars in the U.S., and dampen demand further at a moment when the industry is already struggling with the transition to electric vehicles. The majority of auto stocks fell on Thursday. Tesla, the U.S. electric vehicle maker, was an exception.
Volkswagen, a German company, said in a press release that "the entire automotive industry will be affected by the consequences. This includes global supply chains as well as companies and customers."
According to GlobalData, the United States imports more cars than any other country in the world, including Canada and Mexico. GlobalData, a research firm, estimates that nearly half of the cars sold in America last year were imported. General Motors shares fell by nearly 7% Thursday afternoon. Ford Motors and Stellantis, which is listed in the United States, also saw a decline of about 3%. Tesla's shares rose by about 5% as Elon Musk’s company is more exposed to tariffs.
Barclays analysts wrote in a report that Trump's tariffs would have a more draconian impact than expected.
The U.S. United Auto Workers and other supporters of Trump's initiatives say that the United States should focus on increasing domestic production. However, the process of moving the facilities could take many years during which time costs would rise and production might drop. The American Automotive Policy Council (which represents the Detroit Three automobile manufacturers) said late Wednesday that the "U.S. Automakers" are committed to Trump's vision to increase automotive production and create jobs in the U.S., and that they will continue to collaborate with the Administration to develop durable policies that benefit Americans.
The AAPC said that it was "critical" to implement the tariffs in a manner that avoided price increases for consumers.
Dealers and consumers may not see any major shortages for some time. Cox Automotive's data shows that dealers had 89 days worth of inventory on their lots at the beginning of March. Some consumers are trying to get their purchases in before the prices begin to increase.
TURMOIL FOR GLOBAL AUTO COMPANIES Europe’s auto industry has called for a deal across the Atlantic to avoid tariffs. Volkswagen, BMW Mercedes-Benz Porsche and Continental all lost $5.93 billion in market value combined on Thursday. The automakers will have to decide whether they want to move more production to the U.S. or absorb the tariff costs. Volvo Cars and Mercedes-Benz, as well as Volkswagen's Audi, Hyundai, and Mercedes-Benz, have all already announced that they would move production. Ferrari, which produces all its cars in Italy will raise prices by up to 10% for some models. Valeo, a French auto parts supplier, said that it had no choice but to raise prices.
BLG Group in Germany, the port logistics provider of one of the busiest auto shipping ports in the world in Bremerhaven said that it planned for a 15% decrease in traffic due to the tariffs. The tariffs will be implemented on April 3 for cars and auto parts, respectively.
HITS TO U.S. MANUFACTURING
Since the 1994 North American Free Trade Agreement that encouraged the development a highly integrated automotive supply chain between U.S.A., Canada, and Mexico, automakers in North America enjoy free trade status. Trump's revised U.S. Mexico-Canada Agreement 2020 imposed new rules in order to encourage regional content production.
Cox Automotive stated that the tariffs would have an immediate effect on production. Cox Automotive expects to see disruption in "virtually" all North American vehicle production by mid-April. This will result in a reduction of roughly 20,000 vehicles per day or 30%.
The White House stated that Trump's tariffs will "protect and strengthen" the U.S. auto industry more than previous deals. Trump imposed 25% tariffs on Mexico and Canada early in March. He then granted a one-month respite for vehicles that met the USMCA's terms. However, the new rules don't extend this.
The White House announced that importers of vehicles made in North America will be able to certify the U.S. component of their vehicle to avoid paying taxes on these components.
Some CEOs privately express a reluctance in making long-term decisions based on a policy that could be short-term, stating a market decline could make Trump change his mind.
Analysts at Bernstein Research stated that "we know the president views the Dow Jones as a barometer of success." It is difficult to gauge the duration of these policies, if they cause a market crash that doesn't appear to be temporary.
(source: Reuters)