Apple Inc. has taken an unusual step by offering discounts of up to 500 yuan ($70) on its latest iPhones in China, marking a rare move that has triggered concerns about diminishing demand for its flagship device. <o:p></o:p>

According to a Bloomberg report, the discounts, introduced on Apple's official website in China, are valid from January 18 to January 21, strategically timed ahead of the Lunar New Year shopping season. <o:p></o:p>

This price reduction, equivalent to approximately 5 per cent off its top-tier iPhone models, signals a departure from Apple's traditional pricing strategy in the region.<o:p></o:p>

The decision to slash iPhone prices comes in the midst of changing consumer preferences in China, where local brands like Huawei Technologies Co. are gaining popularity. <o:p></o:p>

Apple's latest iPhone 15 faced disappointing sales compared to its predecessor after its debut in China last year, a trend attributed to a growing affinity for homegrown brands and the imposition of restrictions on the use of foreign devices in state-backed agencies and companies. <o:p></o:p>

Jefferies' warning about a potential 30 per cent drop in 2023 iPhone sales in China adds to the apprehensions surrounding Apple's market position.<o:p></o:p>

Analysts suggest that the introduction of Huawei's Mate 60 series with a 7-nanometer made-in-China processor, seen as a national breakthrough despite US sanctions, contributed to the decline in iPhone sales in the region. <o:p></o:p>

Apple's move to discount its latest iPhones in China is a notable shift, considering its longstanding practice of refraining from price cuts on its newest devices. <o:p></o:p>

The Lunar New Year discounts, a customary practice for Apple, have typically excluded the latest iPhone models. However, this year's offerings encompass discounts on the iPhone 13 to the iPhone 15 Pro Max, reflecting the company's acknowledgment of market dynamics and the need to bolster demand.<o:p></o:p>

Apple's Chinese retail partners have previously offered more substantial discounts on the latest iPhones, but the Cupertino-based tech giant has now directly embraced the practice. <o:p></o:p>

The discount initiative extends beyond iPhones, including the MacBook Air, various iPad models, select AirPods, and the Apple Watch SE. The MacBook Air, in particular, is witnessing a significant markdown, with Apple reducing its price by up to 800 yuan. <o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

Apple Inc. has taken an unusual step by offering discounts of up to 500 yuan ($70) on its latest iPhones in China, marking a rare move that has triggered concerns about diminishing demand for its flagship device.

Apple Inc. has taken an unusual step by offering discounts of up to 500 yuan ($70) on its latest iPhones in China, marking a rare move that has triggered concerns about diminishing demand for its flagship device. According to a Bloomberg report, the discounts, introduced on Apple's official website in China, are valid from January 18 to January 21, strategically timed ahead of the Lunar New Year shopping season. This price reduction, equivalent to approximately 5 per cent off its top-tier iPhone models, signals a departure from Apple's traditional pricing strategy in the region. The decision to slash iPhone prices comes in the midst of changing consumer preferences in China, where local brands like Huawei Technologies Co. are gaining popularity. Apple's latest iPhone 15 faced disappointing sales compared to its predecessor after its debut in China last year, a trend attributed to a growing affinity for homegrown brands and the imposition of restrictions on the use of foreign devices in state-backed agencies and companies. Jefferies' warning about a potential 30 per cent drop in 2023 iPhone sales in China adds to the apprehensions surrounding Apple's market position. Analysts suggest that the introduction of Huawei's Mate 60 series with a 7-nanometer made-in-China processor, seen as a national breakthrough despite US sanctions, contributed to the decline in iPhone sales in the region. Apple's move to discount its latest iPhones in China is a notable shift, considering its longstanding practice of refraining from price cuts on its newest devices. The Lunar New Year discounts, a customary practice for Apple, have typically excluded the latest iPhone models. However, this year's offerings encompass discounts on the iPhone 13 to the iPhone 15 Pro Max, reflecting the company's acknowledgment of market dynamics and the need to bolster demand. Apple's Chinese retail partners have previously offered more substantial discounts on the latest iPhones, but the Cupertino-based tech giant has now directly embraced the practice. The discount initiative extends beyond iPhones, including the MacBook Air, various iPad models, select AirPods, and the Apple Watch SE. The MacBook Air, in particular, is witnessing a significant markdown, with Apple reducing its price by up to 800 yuan. (With inputs from Bloomberg)

Apple implements rare iPhone 15 discounts in China amid demand uncertainty

As global leaders gather in Davos for the World Economic Forum's annual meeting, a recent survey by Edelman underscores widespread public distrust in the management and regulation of new technologies by businesses and governments. <o:p></o:p>

Released under the theme "Rebuilding Trust," the survey reveals that 39 per cent of respondents lack confidence in how innovations are introduced and regulated, with only 22 per cent expressing satisfaction. <o:p></o:p>

Notably, the United States emerges as a hotspot of scepticism, with 56 per cent of respondents believing that innovation is poorly managed, reflecting a notable divide.<o:p></o:p>

Despite the pervasive mistrust, the survey points to a paradox where businesses are regarded as the most trusted entities to integrate innovation into society, surpassing non-governmental organisations, government bodies, and the media. <o:p></o:p>

The survey, conducted in 28 countries with 32,000 participants, suggests that while the public is wary of how innovations are managed, there remains a level of trust in businesses to responsibly incorporate technological advancements.<o:p></o:p>

The report highlights instances of pushback against technology, citing Beijing's reversal of COVID vaccine mandates in response to online resistance, US Republican opposition to electric vehicles, and Hollywood writers' resistance to the use of artificial intelligence in scriptwriting. <o:p></o:p>

It suggests that resistance to innovation is often politically charged, with higher levels of opposition observed among right-leaning individuals, particularly in the United States, Australia, Germany, and Canada. <o:p></o:p>

Edelman's CEO, Richard Edelman, emphasises the need for businesses to pay attention to public acceptance as much as research and development. <o:p></o:p>

Acknowledging that innovation should be a growth enabler, he underscores that its potential might be hindered if businesses neglect the importance of gaining public trust. <o:p></o:p>

The findings serve as a call for a more holistic approach, emphasising not only technological advancements but also the communication and societal integration of these innovations. <o:p></o:p>

In addition to the global perspective, the Trust Barometer in the survey points out that Britain finds itself at the bottom of the trust scale, scoring 39 per cent. <o:p></o:p>

This metric, which provides an average percent trust in NGOs, business, government, and media, indicates a notable lack of trust in various institutions in the United Kingdom.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

As global leaders gather in Davos for the World Economic Forum's annual meeting, a recent survey by Edelman underscores widespread public distrust in the management and regulation of new technologies by businesses and governments.

As global leaders gather in Davos for the World Economic Forum's annual meeting, a recent survey by Edelman underscores widespread public distrust in the management and regulation of new technologies by businesses and governments. Released under the theme "Rebuilding Trust," the survey reveals that 39 per cent of respondents lack confidence in how innovations are introduced and regulated, with only 22 per cent expressing satisfaction. Notably, the United States emerges as a hotspot of scepticism, with 56 per cent of respondents believing that innovation is poorly managed, reflecting a notable divide. Despite the pervasive mistrust, the survey points to a paradox where businesses are regarded as the most trusted entities to integrate innovation into society, surpassing non-governmental organisations, government bodies, and the media. The survey, conducted in 28 countries with 32,000 participants, suggests that while the public is wary of how innovations are managed, there remains a level of trust in businesses to responsibly incorporate technological advancements. The report highlights instances of pushback against technology, citing Beijing's reversal of COVID vaccine mandates in response to online resistance, US Republican opposition to electric vehicles, and Hollywood writers' resistance to the use of artificial intelligence in scriptwriting. It suggests that resistance to innovation is often politically charged, with higher levels of opposition observed among right-leaning individuals, particularly in the United States, Australia, Germany, and Canada. Edelman's CEO, Richard Edelman, emphasises the need for businesses to pay attention to public acceptance as much as research and development. Acknowledging that innovation should be a growth enabler, he underscores that its potential might be hindered if businesses neglect the importance of gaining public trust. The findings serve as a call for a more holistic approach, emphasising not only technological advancements but also the communication and societal integration of these innovations. In addition to the global perspective, the Trust Barometer in the survey points out that Britain finds itself at the bottom of the trust scale, scoring 39 per cent. This metric, which provides an average percent trust in NGOs, business, government, and media, indicates a notable lack of trust in various institutions in the United Kingdom. (With inputs from Reuters)

US leads global public distrust in innovation, survey unveils concerns ahead of Davos Summit

Monday brought a uncertain start for Asian shares as China's central bank surprised markets by abstaining from a rate cut, leaving investors on edge ahead of crucial economic data, Reuters reported.<o:p></o:p>

With China set to report fourth-quarter economic growth figures and monthly data this week, apprehension looms over the fragile state of its economic recovery. <o:p></o:p>

Chinese blue chips dipped 0.5 per cent, hitting their lowest since early 2019. <o:p></o:p>

"For now, we think China is still focused on engineering economic stability," Reuters quoted Damien Boey, Chief Macro Strategist at Barrenjoey in Sydney as saying.<o:p></o:p>

While Asian shares faced headwinds, Japan's Nikkei bucked the trend, rising 0.6 per cent to a fresh 34-year peak after stellar gains last week. <o:p></o:p>

However, MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.2 per cent, following a 0.8 per cent loss the previous week. <o:p></o:p>

Geopolitical tensions, highlighted by the victory of Taiwan's ruling Democratic Progressive Party, served as a reminder that global elections and Middle East conflicts could impact markets throughout the year.<o:p></o:p>

The thin trading due to a US holiday added to the cautious mood, with progress on a stopgap spending bill providing a glimmer of stability.<o:p></o:p>

Amid global uncertainties, the focus shifted to central bank actions. Futures pointed to a 75 per cent chance that the US Federal Reserve would lower interest rates as early as March, with weak producer price data countering a disappointing consumer price report.<o:p></o:p>

Barclays analysts adjusted their expectations for the first Fed cut from June to March, citing core personal consumption price index data running at or below 0.2 per cent m/m. <o:p></o:p>

The dovish outlook prompted speculation that Fed Governor Christopher Waller could pave the way for easing in a speech on Tuesday.<o:p></o:p>

As the World Economic Forum unfolded in Davos, European Central Bank speakers, including President Christine Lagarde, took centre stage. <o:p></o:p>

ECB Chief Economist Philip Lane suggested there would be enough data by June to decide on the first of a potential series of interest rate cuts. <o:p></o:p>

Markets, fully priced for an easing in April, implied a substantial 154 basis points of cuts over 2024. <o:p></o:p>

This dovish sentiment, coupled with global economic concerns, has limited the euro's gains against the dollar, which idled at $1.0950 on Monday.<o:p></o:p>

In the currency markets, the dollar held its ground against the yen, supported by subdued Japanese data keeping the Bank of Japan committed to its accommodative policies. <o:p></o:p>

The dollar edged up to 145.08 yen, moving closer to last week's peak of 146.41. <o:p></o:p>

Meanwhile, non-yielding gold stood firm at $2,050 an ounce, backed by the prospect of lower global interest rates. <o:p></o:p>

Oil prices experienced some volatility due to disruptions in the Red Sea but faced pressure from demand concerns.<o:p></o:p>

Brent eased to $78.10 a barrel, while US crude fell to $72.45 per barrel.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Monday brought a uncertain start for Asian shares as China's central bank surprised markets by abstaining from a rate cut, leaving investors on edge ahead of crucial economic data, Reuters reported.

Monday brought a uncertain start for Asian shares as China's central bank surprised markets by abstaining from a rate cut, leaving investors on edge ahead of crucial economic data, Reuters reported. With China set to report fourth-quarter economic growth figures and monthly data this week, apprehension looms over the fragile state of its economic recovery. Chinese blue chips dipped 0.5 per cent, hitting their lowest since early 2019. "For now, we think China is still focused on engineering economic stability," Reuters quoted Damien Boey, Chief Macro Strategist at Barrenjoey in Sydney as saying. While Asian shares faced headwinds, Japan's Nikkei bucked the trend, rising 0.6 per cent to a fresh 34-year peak after stellar gains last week. However, MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.2 per cent, following a 0.8 per cent loss the previous week. Geopolitical tensions, highlighted by the victory of Taiwan's ruling Democratic Progressive Party, served as a reminder that global elections and Middle East conflicts could impact markets throughout the year. The thin trading due to a US holiday added to the cautious mood, with progress on a stopgap spending bill providing a glimmer of stability. Amid global uncertainties, the focus shifted to central bank actions. Futures pointed to a 75 per cent chance that the US Federal Reserve would lower interest rates as early as March, with weak producer price data countering a disappointing consumer price report. Barclays analysts adjusted their expectations for the first Fed cut from June to March, citing core personal consumption price index data running at or below 0.2 per cent m/m. The dovish outlook prompted speculation that Fed Governor Christopher Waller could pave the way for easing in a speech on Tuesday. As the World Economic Forum unfolded in Davos, European Central Bank speakers, including President Christine Lagarde, took centre stage. ECB Chief Economist Philip Lane suggested there would be enough data by June to decide on the first of a potential series of interest rate cuts. Markets, fully priced for an easing in April, implied a substantial 154 basis points of cuts over 2024. This dovish sentiment, coupled with global economic concerns, has limited the euro's gains against the dollar, which idled at $1.0950 on Monday. In the currency markets, the dollar held its ground against the yen, supported by subdued Japanese data keeping the Bank of Japan committed to its accommodative policies. The dollar edged up to 145.08 yen, moving closer to last week's peak of 146.41. Meanwhile, non-yielding gold stood firm at $2,050 an ounce, backed by the prospect of lower global interest rates. Oil prices experienced some volatility due to disruptions in the Red Sea but faced pressure from demand concerns. Brent eased to $78.10 a barrel, while US crude fell to $72.45 per barrel. (With inputs from Reuters)

Asia stocks waver as China opts against rate cut: Report

The latest data from the Society of Indian Automobile Manufacturers (SIAM) reveals a 21 per cent decline in automobile exports in 2023, with a total of 4,285,809 units shipped compared to 52,04,966 units in the previous year. <o:p></o:p>

This is based on an article published by PTI.<o:p></o:p>

The setback is attributed to ongoing monetary and geopolitical crises in various overseas markets.<o:p></o:p>

Passenger vehicle exports, however, defied the overall trend, registering a 5 per cent increase with 677,956 units shipped in 2023 compared to 644,842 units in 2022. <o:p></o:p>

Maruti Suzuki emerged as a key player in this segment, leading the passenger vehicle shipments. <o:p></o:p>

SIAM Director General Rajesh Menon highlighted, "In 2023, passenger vehicle exports were driven by vehicle launches and pent-up demand in markets like South Africa and the Gulf region."<o:p></o:p>

While passenger vehicles showed resilience, other segments faced significant declines. <o:p></o:p>

Two-wheeler exports witnessed a substantial drop of 20 per cent, recording 3243,673 units in 2023 compared to 4,053,254 units the previous year. <o:p></o:p>

Commercial vehicle shipments followed suit, decreasing to 68,473 units from 88,305 units. <o:p></o:p>

Three-wheelers experienced the most significant decline, with exports plummeting by 30 per cent to 291,919 units in 2023 from 417,178 units in 2022.<o:p></o:p>

Industry experts attribute the challenges in two-wheelers, commercial vehicles, and three-wheelers to the persisting economic uncertainties and geopolitical issues in key export markets. <o:p></o:p>

The impact on these segments underscores the need for strategic measures and market diversification for sustained growth in the face of external pressures.<o:p></o:p>

(Inputs from PTI)<o:p></o:p>

The latest data from the Society of Indian Automobile Manufacturers (SIAM) reveals a 21 per cent decline in automobile exports in 2023, with a total of 4,285,809 units shipped compared to 52,04,966 units in the previous year.

The latest data from the Society of Indian Automobile Manufacturers (SIAM) reveals a 21 per cent decline in automobile exports in 2023, with a total of 4,285,809 units shipped compared to 52,04,966 units in the previous year. This is based on an article published by PTI. The setback is attributed to ongoing monetary and geopolitical crises in various overseas markets. Passenger vehicle exports, however, defied the overall trend, registering a 5 per cent increase with 677,956 units shipped in 2023 compared to 644,842 units in 2022. Maruti Suzuki emerged as a key player in this segment, leading the passenger vehicle shipments. SIAM Director General Rajesh Menon highlighted, "In 2023, passenger vehicle exports were driven by vehicle launches and pent-up demand in markets like South Africa and the Gulf region." While passenger vehicles showed resilience, other segments faced significant declines. Two-wheeler exports witnessed a substantial drop of 20 per cent, recording 3243,673 units in 2023 compared to 4,053,254 units the previous year. Commercial vehicle shipments followed suit, decreasing to 68,473 units from 88,305 units. Three-wheelers experienced the most significant decline, with exports plummeting by 30 per cent to 291,919 units in 2023 from 417,178 units in 2022. Industry experts attribute the challenges in two-wheelers, commercial vehicles, and three-wheelers to the persisting economic uncertainties and geopolitical issues in key export markets. The impact on these segments underscores the need for strategic measures and market diversification for sustained growth in the face of external pressures. (Inputs from PTI)

Maruti Suzuki tops passenger vehicle exports amid 21pc decline in automobile shipments in 2023

International Monetary Fund's Managing Director, Kristalina Georgieva, has highlighted the dual nature of artificial intelligence (AI) concerning job security globally. <o:p></o:p>

In an interview with Agence France-Presse, Georgieva expressed that AI is anticipated to impact 60 per cent of jobs in advanced economies, with around 40 per cent globally. <o:p></o:p>

Despite the perceived risks, Georgieva emphasised that AI presents a "tremendous opportunity" to enhance productivity levels and fuel global growth.<o:p></o:p>

Job displacement or enhancement: The AI dilemma<o:p></o:p>

Georgieva conveyed the nuanced impact of AI on employment, stating, "Your job may disappear altogether -- not good -- or artificial intelligence may enhance your job, so you actually will be more productive and your income level may go up." <o:p></o:p>

According to a new IMF report, only half of the jobs influenced by AI are expected to face negative consequences, while the remaining half might benefit from increased productivity due to AI integration into the workplace. <o:p></o:p>

The report suggests that higher-skilled jobs are likely to experience a more substantial impact.<o:p></o:p>

AI's uneven effects and global economic landscape<o:p></o:p>

The IMF report indicated that while labour markets in emerging and developing economies might initially experience a smaller impact from AI, they are also less likely to benefit from enhanced productivity gains. <o:p></o:p>

Georgieva stressed the importance of focusing on assisting low-income countries in adapting quickly to seize the opportunities presented by AI. <o:p></o:p>

As the IMF prepares to release updated economic forecasts later this month, Georgieva expressed optimism about the global economy, noting that it is on track to meet previous forecasts but cautioned that challenges remain in achieving a balanced monetary policy.<o:p></o:p>

AI's role in global productivity and challenges ahead<o:p></o:p>

In addressing the global economy's need for increased productivity, Georgieva emphasised the potential role of AI-related productivity boosts. <o:p></o:p>

She noted the continued growth of the global economy at historically subdued levels and expressed the necessity of unlocking productivity for a more favourable global narrative. <o:p></o:p>

Looking ahead, Georgieva predicted a challenging fiscal year in 2024, with countries grappling to address debt burdens from the COVID-19 pandemic and managing depleted buffers. <o:p></o:p>

The IMF's concern lies in the possibility of governments overspending and undermining efforts to combat inflation.<o:p></o:p>

IMF chief's future and institutional accomplishments<o:p></o:p>

Refusing to delve into her future plans, Georgieva, whose term at the IMF concludes this year, emphasised her current commitment to the role. <o:p></o:p>

She acknowledged the privilege of leading the IMF during turbulent times and expressed pride in the institution's resilience. <o:p></o:p>

Georgieva concluded by focusing on her immediate responsibilities, stating, "Let me do what is in front of me right now."<o:p></o:p>

(With inputs from AFP)<o:p></o:p>

International Monetary Fund's Managing Director, Kristalina Georgieva, has highlighted the dual nature of artificial intelligence (AI) concerning job security globally.

International Monetary Fund's Managing Director, Kristalina Georgieva, has highlighted the dual nature of artificial intelligence (AI) concerning job security globally. In an interview with Agence France-Presse, Georgieva expressed that AI is anticipated to impact 60 per cent of jobs in advanced economies, with around 40 per cent globally. Despite the perceived risks, Georgieva emphasised that AI presents a "tremendous opportunity" to enhance productivity levels and fuel global growth. Job displacement or enhancement: The AI dilemma Georgieva conveyed the nuanced impact of AI on employment, stating, "Your job may disappear altogether -- not good -- or artificial intelligence may enhance your job, so you actually will be more productive and your income level may go up." According to a new IMF report, only half of the jobs influenced by AI are expected to face negative consequences, while the remaining half might benefit from increased productivity due to AI integration into the workplace. The report suggests that higher-skilled jobs are likely to experience a more substantial impact. AI's uneven effects and global economic landscape The IMF report indicated that while labour markets in emerging and developing economies might initially experience a smaller impact from AI, they are also less likely to benefit from enhanced productivity gains. Georgieva stressed the importance of focusing on assisting low-income countries in adapting quickly to seize the opportunities presented by AI. As the IMF prepares to release updated economic forecasts later this month, Georgieva expressed optimism about the global economy, noting that it is on track to meet previous forecasts but cautioned that challenges remain in achieving a balanced monetary policy. AI's role in global productivity and challenges ahead In addressing the global economy's need for increased productivity, Georgieva emphasised the potential role of AI-related productivity boosts. She noted the continued growth of the global economy at historically subdued levels and expressed the necessity of unlocking productivity for a more favourable global narrative. Looking ahead, Georgieva predicted a challenging fiscal year in 2024, with countries grappling to address debt burdens from the COVID-19 pandemic and managing depleted buffers. The IMF's concern lies in the possibility of governments overspending and undermining efforts to combat inflation. IMF chief's future and institutional accomplishments Refusing to delve into her future plans, Georgieva, whose term at the IMF concludes this year, emphasised her current commitment to the role. She acknowledged the privilege of leading the IMF during turbulent times and expressed pride in the institution's resilience. Georgieva concluded by focusing on her immediate responsibilities, stating, "Let me do what is in front of me right now." (With inputs from AFP)

IMF chief acknowledges AI job risks but highlights 'tremendous opportunity'

Soaring shipping costs and a spike in oil prices have ignited concerns about a potential revival of inflation pressures worldwide, Bloomberg reported.<o:p></o:p>

Only a few days into 2024, anticipated as the year of waning inflation, manufacturers and retailers find themselves grappling with delays and increased expenses due to persistent attacks by Houthi rebels in the Red Sea, disrupting a crucial shipping route through the Suez Canal. <o:p></o:p>

The resulting turmoil has doubled ocean freight rates for goods from Asia to Europe over the past four weeks, casting a shadow on hopes for a smooth economic recovery.<o:p></o:p>

Geopolitical tensions push up oil prices and add to inflation fears<o:p></o:p>

As geopolitical tensions escalate with persistent attacks in the Red Sea, oil prices experienced a significant surge after the US and UK led a military response. <o:p></o:p>

Global benchmark Brent briefly topped $80 a barrel, marking a 4.3 per cent increase. <o:p></o:p>

Mohamed El-Erian, President of Queens' College, Cambridge, and a Bloomberg Opinion columnist, expressed concern, stating, "This is a world in which we are fragile to begin with on the supply side, and then you get this additional shock."<o:p></o:p>

Supply chains vulnerable amid shipping disruptions<o:p></o:p>

While the shipping disruptions are not as severe as those witnessed during the pandemic, the blockages in two critical trade arteries – the Red Sea and Central America's Panama Canal – are raising alarms within the industry. <o:p></o:p>

Bloomberg cited Stephen Lamar, the President of the American Apparel &amp; Footwear Association, who said, "This is a very dramatic reminder that supply chains continue to be very fragile," and he highlighted its potential inflationary impact across the freight industry.<o:p></o:p>

Experts assess the inflationary impact and economic ramifications<o:p></o:p>

Analysts are grappling with the potential inflationary impact, particularly in Europe and the US, as the disruptions unfold. <o:p></o:p>

Ziad Daoud of Bloomberg Economics suggests that while the conflict in the Red Sea may not spill over into the wider region, limiting economic damage, the full extent of the inflationary impact will take time to become clear. <o:p></o:p>

Economists at Allianz Trade estimate that a doubling of shipping costs could lift inflation by 0.7 percentage points for Europe and the US. <o:p></o:p>

Oxford Economics projects that a permanent $10 increase in the price of a barrel of oil could add 0.22 percentage points to UK inflation and 0.29 points to global inflation in 2024.<o:p></o:p>

Companies react to mitigate disruption, impact on consumers uncertain<o:p></o:p>

Companies are already taking measures to mitigate the disruption caused by the Red Sea attacks. <o:p></o:p>

Volvo Car AB and Tesla Inc. are among those adjusting production schedules due to supply chain disruptions. <o:p></o:p>

Grocery chain Tesco Plc in the UK has warned of potential inflation pressures, anticipating extended shipping times and increased costs if vessels must circumnavigate Africa to reach Europe. <o:p></o:p>

Craig Akers, Director of Operations at the Toy Shippers Association, humorously termed this period the 'canal crisis,' highlighting the uncertainty retailers and manufacturers face in the coming months.<o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

Soaring shipping costs and a spike in oil prices have ignited concerns about a potential revival of inflation pressures worldwide, Bloomberg reported. Only a few days into 2024, anticipated as the year of waning inflation, manufacturers and retailers find themselves grappling with delays and increased expenses due to persistent attacks by Houthi rebels in the Red Sea, disrupting a crucial shipping route through the Suez Canal.

Soaring shipping costs and a spike in oil prices have ignited concerns about a potential revival of inflation pressures worldwide, Bloomberg reported. Only a few days into 2024, anticipated as the year of waning inflation, manufacturers and retailers find themselves grappling with delays and increased expenses due to persistent attacks by Houthi rebels in the Red Sea, disrupting a crucial shipping route through the Suez Canal. The resulting turmoil has doubled ocean freight rates for goods from Asia to Europe over the past four weeks, casting a shadow on hopes for a smooth economic recovery. Geopolitical tensions push up oil prices and add to inflation fears As geopolitical tensions escalate with persistent attacks in the Red Sea, oil prices experienced a significant surge after the US and UK led a military response. Global benchmark Brent briefly topped $80 a barrel, marking a 4.3 per cent increase. Mohamed El-Erian, President of Queens' College, Cambridge, and a Bloomberg Opinion columnist, expressed concern, stating, "This is a world in which we are fragile to begin with on the supply side, and then you get this additional shock." Supply chains vulnerable amid shipping disruptions While the shipping disruptions are not as severe as those witnessed during the pandemic, the blockages in two critical trade arteries – the Red Sea and Central America's Panama Canal – are raising alarms within the industry. Bloomberg cited Stephen Lamar, the President of the American Apparel & Footwear Association, who said, "This is a very dramatic reminder that supply chains continue to be very fragile," and he highlighted its potential inflationary impact across the freight industry. Experts assess the inflationary impact and economic ramifications Analysts are grappling with the potential inflationary impact, particularly in Europe and the US, as the disruptions unfold. Ziad Daoud of Bloomberg Economics suggests that while the conflict in the Red Sea may not spill over into the wider region, limiting economic damage, the full extent of the inflationary impact will take time to become clear. Economists at Allianz Trade estimate that a doubling of shipping costs could lift inflation by 0.7 percentage points for Europe and the US. Oxford Economics projects that a permanent $10 increase in the price of a barrel of oil could add 0.22 percentage points to UK inflation and 0.29 points to global inflation in 2024. Companies react to mitigate disruption, impact on consumers uncertain Companies are already taking measures to mitigate the disruption caused by the Red Sea attacks. Volvo Car AB and Tesla Inc. are among those adjusting production schedules due to supply chain disruptions. Grocery chain Tesco Plc in the UK has warned of potential inflation pressures, anticipating extended shipping times and increased costs if vessels must circumnavigate Africa to reach Europe. Craig Akers, Director of Operations at the Toy Shippers Association, humorously termed this period the 'canal crisis,' highlighting the uncertainty retailers and manufacturers face in the coming months. (With inputs from Bloomberg)

Red Sea attacks spark global inflation fears, disrupting supply chains

China is on the verge of achieving its growth target of approximately 5 per cent for the year 2023, shifting the focus to potential hurdles that could impede momentum in 2024.<o:p></o:p>

This is based on a Bloomberg report. <o:p></o:p>

Wednesday's expected release of data is projected to reveal a 5.2 per cent expansion in China's gross domestic product for the entire preceding year. <o:p></o:p>

However, concerns linger about deflation risks, a housing crisis, and a lingering confidence crunch that could pose challenges to the nation's economic trajectory.<o:p></o:p>

Mixed Signals as 2024 unfolds<o:p></o:p>

As 2024 unfolds, China encounters a mixed bag of economic indicators. While the consumer prices registered a third consecutive monthly fall in December, marking their longest deflation streak since 2009, exports are displaying signs of stabilisation after a continual decline throughout 2023. <o:p></o:p>

Analysts suggest that the slow and bumpy recovery of domestic demand, coupled with a sluggish property market rebound, may impact the pace of China's economic revival.<o:p></o:p>

Central bank's response to deflationary pressures<o:p></o:p>

Economists anticipate the People's Bank of China (PBOC) to respond to deflationary pressures and boost lending by potentially lowering the rate on its one-year policy loans by 10 basis points to 2.4 per cent.<o:p></o:p>

Additional measures, such as injecting more cash into the financial system and potential reductions in the cash reserve requirements for banks, are expected. <o:p></o:p>

However, some experts argue that these measures may not be sufficient to address the multifaceted challenges at hand.<o:p></o:p>

Analyst insights and expectations for 2024<o:p></o:p>

Bloomberg cited Duncan Wrigley, Chief China Economist at Pantheon Macroeconomics, who projected a slow and bumpy recovery in domestic demand as targeted stimulus measures gradually impact investment sectors. <o:p></o:p>

Societe Generale SA economists foresee a Chinese economic growth of 4.5 per cent in 2024, factoring in increased fiscal stimulus, some monetary policy easing, stable export growth, and support for the housing sector. <o:p></o:p>

Yao Wei, the bank’s Chief Economist and Head of Research for Asia Pacific, highlighted the potential for achieving 5 per cent growth if the Chinese government further escalates fiscal policy beyond current forecasts.<o:p></o:p>

Global implications and economic events elsewhere<o:p></o:p>

The economic landscape extends beyond China, with Indonesia's central bank likely to maintain its interest rate, Singapore expecting robust December exports, and Australia anticipating data that might indicate a slowdown in job growth. <o:p></o:p>

Internationally, German GDP for 2023, UK reports on wages and consumer prices, discussions at the World Economic Forum in Davos, and US retail sales are poised to impact global investor sentiment.<o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

China is on the verge of achieving its growth target of approximately 5 per cent for the year 2023, shifting the focus to potential hurdles that could impede momentum in 2024.

China is on the verge of achieving its growth target of approximately 5 per cent for the year 2023, shifting the focus to potential hurdles that could impede momentum in 2024. This is based on a Bloomberg report. Wednesday's expected release of data is projected to reveal a 5.2 per cent expansion in China's gross domestic product for the entire preceding year. However, concerns linger about deflation risks, a housing crisis, and a lingering confidence crunch that could pose challenges to the nation's economic trajectory. Mixed Signals as 2024 unfolds As 2024 unfolds, China encounters a mixed bag of economic indicators. While the consumer prices registered a third consecutive monthly fall in December, marking their longest deflation streak since 2009, exports are displaying signs of stabilisation after a continual decline throughout 2023. Analysts suggest that the slow and bumpy recovery of domestic demand, coupled with a sluggish property market rebound, may impact the pace of China's economic revival. Central bank's response to deflationary pressures Economists anticipate the People's Bank of China (PBOC) to respond to deflationary pressures and boost lending by potentially lowering the rate on its one-year policy loans by 10 basis points to 2.4 per cent. Additional measures, such as injecting more cash into the financial system and potential reductions in the cash reserve requirements for banks, are expected. However, some experts argue that these measures may not be sufficient to address the multifaceted challenges at hand. Analyst insights and expectations for 2024 Bloomberg cited Duncan Wrigley, Chief China Economist at Pantheon Macroeconomics, who projected a slow and bumpy recovery in domestic demand as targeted stimulus measures gradually impact investment sectors. Societe Generale SA economists foresee a Chinese economic growth of 4.5 per cent in 2024, factoring in increased fiscal stimulus, some monetary policy easing, stable export growth, and support for the housing sector. Yao Wei, the bank’s Chief Economist and Head of Research for Asia Pacific, highlighted the potential for achieving 5 per cent growth if the Chinese government further escalates fiscal policy beyond current forecasts. Global implications and economic events elsewhere The economic landscape extends beyond China, with Indonesia's central bank likely to maintain its interest rate, Singapore expecting robust December exports, and Australia anticipating data that might indicate a slowdown in job growth. Internationally, German GDP for 2023, UK reports on wages and consumer prices, discussions at the World Economic Forum in Davos, and US retail sales are poised to impact global investor sentiment. (With inputs from Bloomberg)

China's economic path in 2024: Growth achieved, but challenges loom

The possibility of a merger between Deutsche Bank and Commerzbank has resurfaced, after an attempt was called off five years ago.<o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

The renewed speculation is driven by Germany's quest to bolster its budget by considering the sale of stakes in the multitude of companies it owns. <o:p></o:p>

Finance Minister Christian Lindner, while not indicating an immediate sale of the government's 15 per cent stake in Commerzbank, remains open to the idea, with a preference for the government eventually divesting its holding.<o:p></o:p>

Sources suggest that a potential merger could offer Deutsche Bank the opportunity to diversify away from the unpredictability of investment banking earnings, contributing to the bank's long-term stability.<o:p></o:p>

Although there are no active discussions at present, internal talks within Deutsche Bank have intensified, with considerations for acquisitions, including those of Commerzbank and ABN Amro.<o:p></o:p>

Deutsche Bank's Chairman, Alexander Wynaendts, expressed the bank's readiness for mergers and acquisitions in November, acknowledging the low probability of a substantial transaction in the near term due to various hurdles. <o:p></o:p>

Analyst Anke Reingen from RBC Europe noted that the bank's low valuation and potential job cuts might complicate a merger, as it currently trades at a fraction of its book value.<o:p></o:p>

As of Friday, Deutsche Bank shares closed down 1.23 per cent at 12.05 euros, valuing the bank at 25 billion euros ($27.37 billion), while Commerzbank shares remained relatively stable at 11.35 euros, with a valuation of 14 billion euros. <o:p></o:p>

The complexities of a potential merger include Deutsche Bank's low valuation, potential asset markdowns, and the necessity for substantial job cuts to realise the synergies of combining overlapping businesses.<o:p></o:p>

Documents from the German finance ministry reveal plans to raise up to 4 billion euros this year through the sale of company stakes, with the funds directed towards the state-owned rail company, Deutsche Bahn. <o:p></o:p>

The government's stake in Commerzbank, dating back to the 2008 financial crisis, has remained a loss-making venture, adding weight to the considerations for a sale.<o:p></o:p>

The situation is further complicated by Commerzbank's historical ties with UniCredit, which has been exploring potential mergers. <o:p></o:p>

Previous talks between Commerzbank and UniCredit reportedly took place before the geopolitical events surrounding Russia's invasion of Ukraine in 2022.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

The possibility of a merger between Deutsche Bank and Commerzbank has resurfaced, after an attempt was called off five years ago. This is based on a Reuters report.

The possibility of a merger between Deutsche Bank and Commerzbank has resurfaced, after an attempt was called off five years ago. This is based on a Reuters report. The renewed speculation is driven by Germany's quest to bolster its budget by considering the sale of stakes in the multitude of companies it owns. Finance Minister Christian Lindner, while not indicating an immediate sale of the government's 15 per cent stake in Commerzbank, remains open to the idea, with a preference for the government eventually divesting its holding. Sources suggest that a potential merger could offer Deutsche Bank the opportunity to diversify away from the unpredictability of investment banking earnings, contributing to the bank's long-term stability. Although there are no active discussions at present, internal talks within Deutsche Bank have intensified, with considerations for acquisitions, including those of Commerzbank and ABN Amro. Deutsche Bank's Chairman, Alexander Wynaendts, expressed the bank's readiness for mergers and acquisitions in November, acknowledging the low probability of a substantial transaction in the near term due to various hurdles. Analyst Anke Reingen from RBC Europe noted that the bank's low valuation and potential job cuts might complicate a merger, as it currently trades at a fraction of its book value. As of Friday, Deutsche Bank shares closed down 1.23 per cent at 12.05 euros, valuing the bank at 25 billion euros ($27.37 billion), while Commerzbank shares remained relatively stable at 11.35 euros, with a valuation of 14 billion euros. The complexities of a potential merger include Deutsche Bank's low valuation, potential asset markdowns, and the necessity for substantial job cuts to realise the synergies of combining overlapping businesses. Documents from the German finance ministry reveal plans to raise up to 4 billion euros this year through the sale of company stakes, with the funds directed towards the state-owned rail company, Deutsche Bahn. The government's stake in Commerzbank, dating back to the 2008 financial crisis, has remained a loss-making venture, adding weight to the considerations for a sale. The situation is further complicated by Commerzbank's historical ties with UniCredit, which has been exploring potential mergers. Previous talks between Commerzbank and UniCredit reportedly took place before the geopolitical events surrounding Russia's invasion of Ukraine in 2022. (With inputs from Reuters)

Deutsche Bank & Commerzbank merger possibility resurfaces: Report

Chinese electric car giant BYD has engaged in talks with Brazilian lithium producer Sigma Lithium to obtain materials for Electric Vehicle (EV) manufacturing, the Financial Times reported.

The report cited Alexandre Baldy, BYD’s chair in Brazil, who revealed discussions about potential collaboration, be it through a supply agreement, joint venture, or acquisition.

Baldy emphasised the active nature of the dialogue with Sigma, a company valued at $2.9 billion, as BYD aims to solidify its position as the world's largest EV manufacturer.

BYD, backed by Warren Buffett's Berkshire Hathaway, recently surpassed Tesla in EV production and is investing $620 million in building its first electric car factory outside Asia in Brazil.

BYD's pursuit of an integrated supply chain in Brazil was highlighted by Alexandre Baldy in a statement to the Financial Times where he conveyed that various possibilities were under consideration, encompassing discussions about supply, potential joint ventures, and even the prospect of an acquisition.

However, he emphasised that, at the moment, none of these options had materialised into concrete plans.

The company is strategically positioning itself to secure a consistent and reliable lithium supply, a crucial element for EV batteries.

Baldy disclosed that BYD representatives met with Sigma’s CEO, Ana Cabral Gardner, in São Paulo last month, highlighting an evolving relationship that, for now, remains shrouded in confidentiality.

This potential move aligns with BYD's broader international expansion plans, including establishing an EV factory in Hungary and exploring opportunities in Mexico.

However, BYD's ambitions have not escaped scrutiny, as global concerns rise over China's quest for technological dominance and control over critical resources for clean tech industries.

With the Biden administration looking to reduce Chinese manufacturing in the US and Europe investigating China's EV industry for alleged unfair competition, BYD's strategic moves are under close observation on the international stage.

Sigma Lithium, despite posting a net loss of C$25.5 million in the first nine months of 2023, is a key player in Brazil's lithium market. Amid a sharp decline in lithium prices causing a drop in shares, Sigma's board is conducting a strategic review, contemplating a potential sale of the business or listing its Brazilian unit on Nasdaq and the Singapore Stock Exchange.

Notably, Volkswagen and Chinese battery maker CATL have been mentioned as potential bidders, but both companies have refrained from confirming or denying their involvement.

Chinese electric car giant BYD has engaged in talks with Brazilian lithium producer Sigma Lithium to obtain materials for Electric Vehicle (EV) manufacturing, the Financial Times reported.

Chinese electric car giant BYD has engaged in talks with Brazilian lithium producer Sigma Lithium to obtain materials for Electric Vehicle (EV) manufacturing, the Financial Times reported. The report cited Alexandre Baldy, BYD’s chair in Brazil, who revealed discussions about potential collaboration, be it through a supply agreement, joint venture, or acquisition. Baldy emphasised the active nature of the dialogue with Sigma, a company valued at $2.9 billion, as BYD aims to solidify its position as the world's largest EV manufacturer. BYD, backed by Warren Buffett's Berkshire Hathaway, recently surpassed Tesla in EV production and is investing $620 million in building its first electric car factory outside Asia in Brazil. BYD's pursuit of an integrated supply chain in Brazil was highlighted by Alexandre Baldy in a statement to the Financial Times where he conveyed that various possibilities were under consideration, encompassing discussions about supply, potential joint ventures, and even the prospect of an acquisition. However, he emphasised that, at the moment, none of these options had materialised into concrete plans. The company is strategically positioning itself to secure a consistent and reliable lithium supply, a crucial element for EV batteries. Baldy disclosed that BYD representatives met with Sigma’s CEO, Ana Cabral Gardner, in São Paulo last month, highlighting an evolving relationship that, for now, remains shrouded in confidentiality. This potential move aligns with BYD's broader international expansion plans, including establishing an EV factory in Hungary and exploring opportunities in Mexico. However, BYD's ambitions have not escaped scrutiny, as global concerns rise over China's quest for technological dominance and control over critical resources for clean tech industries. With the Biden administration looking to reduce Chinese manufacturing in the US and Europe investigating China's EV industry for alleged unfair competition, BYD's strategic moves are under close observation on the international stage. Sigma Lithium, despite posting a net loss of C$25.5 million in the first nine months of 2023, is a key player in Brazil's lithium market. Amid a sharp decline in lithium prices causing a drop in shares, Sigma's board is conducting a strategic review, contemplating a potential sale of the business or listing its Brazilian unit on Nasdaq and the Singapore Stock Exchange. Notably, Volkswagen and Chinese battery maker CATL have been mentioned as potential bidders, but both companies have refrained from confirming or denying their involvement.

China's BYD Initiates talks with Sigma Lithium for EV materials: Financial Times report

BlackRock, the global asset manager, has taken a significant step by reducing the valuation of its stake in Indian edtech giant Byju's by 95 per cent, lowering it from $22 billion in early 2022 to a new valuation of $1 billion.<o:p></o:p>

According to a TechCrunch report, the asset manager's disclosed adjustment, indicates a significant devaluation of Byju's, which once held the title of India's most valuable startup. <o:p></o:p>

This markdown by BlackRock is the latest in a series of revaluations, with Prosus, another investor in Byju's, stating last year that it valued the startup at "sub $3 billion".<o:p></o:p>

The devaluation is a notable setback for Byju's, which was once hailed as a star in the Indian startup ecosystem. <o:p></o:p>

BlackRock's disclosures reveal a sharp decline in the implied valuation of Byju's shares, from about $4,660 at its peak in 2022 to $209.6 per share at the end of October last year. <o:p></o:p>

This drastic adjustment reflects the challenges faced by Byju's, once a high-flying unicorn. <o:p></o:p>

The startup, which raised substantial funds and achieved a valuation as high as $50 billion, now grapples with financial hurdles, missed revenue targets, and an uncertain business outlook.<o:p></o:p>

Byju's, backed by a roster of industry heavyweights such as Peak XV Partners, Lightspeed, UBS, and the Chan Zuckerberg Initiative, had ambitious plans for an IPO in early 2022. <o:p></o:p>

However, external factors, including Russia's invasion of Ukraine in February, disrupted market conditions and forced Byju's to postpone its IPO plans. <o:p></o:p>

The startup's challenges intensified as market conditions worsened, leading to increased scrutiny from investors and a halt in its business outlook. <o:p></o:p>

Byju's, once lauded for its innovative teaching methods, is now dealing with difficulties in raising capital, meeting payroll, and addressing substantial debt obligations.<o:p></o:p>

The departure of key personnel, including CFO Ajay Goel and auditor Deloitte, coupled with public criticism from investor Prosus, has added to Byju's woes. <o:p></o:p>

The company's failure to evolve and heed investor advice has been a point of contention, contributing to its current struggles. <o:p></o:p>

BlackRock, the global asset manager, has taken a significant step by reducing the valuation of its stake in Indian edtech giant Byju's by 95 per cent, lowering it from $22 billion in early 2022 to a new valuation of $1 billion.

BlackRock, the global asset manager, has taken a significant step by reducing the valuation of its stake in Indian edtech giant Byju's by 95 per cent, lowering it from $22 billion in early 2022 to a new valuation of $1 billion. According to a TechCrunch report, the asset manager's disclosed adjustment, indicates a significant devaluation of Byju's, which once held the title of India's most valuable startup. This markdown by BlackRock is the latest in a series of revaluations, with Prosus, another investor in Byju's, stating last year that it valued the startup at "sub $3 billion". The devaluation is a notable setback for Byju's, which was once hailed as a star in the Indian startup ecosystem. BlackRock's disclosures reveal a sharp decline in the implied valuation of Byju's shares, from about $4,660 at its peak in 2022 to $209.6 per share at the end of October last year. This drastic adjustment reflects the challenges faced by Byju's, once a high-flying unicorn. The startup, which raised substantial funds and achieved a valuation as high as $50 billion, now grapples with financial hurdles, missed revenue targets, and an uncertain business outlook. Byju's, backed by a roster of industry heavyweights such as Peak XV Partners, Lightspeed, UBS, and the Chan Zuckerberg Initiative, had ambitious plans for an IPO in early 2022. However, external factors, including Russia's invasion of Ukraine in February, disrupted market conditions and forced Byju's to postpone its IPO plans. The startup's challenges intensified as market conditions worsened, leading to increased scrutiny from investors and a halt in its business outlook. Byju's, once lauded for its innovative teaching methods, is now dealing with difficulties in raising capital, meeting payroll, and addressing substantial debt obligations. The departure of key personnel, including CFO Ajay Goel and auditor Deloitte, coupled with public criticism from investor Prosus, has added to Byju's woes. The company's failure to evolve and heed investor advice has been a point of contention, contributing to its current struggles.

Byju's faces setback as BlackRock slashes valuation by 95pc to $1 billion

Political ad spending in the United States is expected to skyrocket 30 per cent this year compared to the 2020 presidential election, driven largely by a surge in digital advertising, according to research firm Insider Intelligence.

According to a Reuters report, several factors are contributing to the spending spree. 

"Political candidates have bigger advertising budgets now," Peter Newman, the forecasting director at Insider Intelligence told Reuters.

He attributed this to "more polarised voters donating more to their preferred candidates" and easier fundraising platforms that allow for contributions to multiple campaigns.

While traditional television will remain the dominant platform, capturing the majority of the estimated $12.3 billion spent on political ads in 2024, digital platforms are poised for the most significant growth.

Insider Intelligence predicts a 156 per cent increase in digital ad revenue from 2020, reaching $3.46 billion this year.

Connected TV, which allows viewers to access streaming services like YouTube and Hulu on their television sets, is spearheading the digital surge. 

"Connected TV offers more precise ad targeting and can be cheaper than broadcast TV ads," Newman elaborated, making it an attractive option for campaigns with smaller budgets.

This opens the door for a wider range of candidates to compete for voter attention on the same screens as well-funded campaigns.

The increased spending is already evident on the airwaves, with supporters of Republican presidential hopefuls Ron DeSantis and Nikki Haley launching attack ads against each other ahead of their recent head-to-head debate in Iowa.

(With inputs from Reuters)

Political ad spending in the United States is expected to skyrocket 30 per cent this year compared to the 2020 presidential election, driven largely by a surge in digital advertising, according to research firm Insider Intelligence.

Political ad spending in the United States is expected to skyrocket 30 per cent this year compared to the 2020 presidential election, driven largely by a surge in digital advertising, according to research firm Insider Intelligence. According to a Reuters report, several factors are contributing to the spending spree. "Political candidates have bigger advertising budgets now," Peter Newman, the forecasting director at Insider Intelligence told Reuters. He attributed this to "more polarised voters donating more to their preferred candidates" and easier fundraising platforms that allow for contributions to multiple campaigns. While traditional television will remain the dominant platform, capturing the majority of the estimated $12.3 billion spent on political ads in 2024, digital platforms are poised for the most significant growth. Insider Intelligence predicts a 156 per cent increase in digital ad revenue from 2020, reaching $3.46 billion this year. Connected TV, which allows viewers to access streaming services like YouTube and Hulu on their television sets, is spearheading the digital surge. "Connected TV offers more precise ad targeting and can be cheaper than broadcast TV ads," Newman elaborated, making it an attractive option for campaigns with smaller budgets. This opens the door for a wider range of candidates to compete for voter attention on the same screens as well-funded campaigns. The increased spending is already evident on the airwaves, with supporters of Republican presidential hopefuls Ron DeSantis and Nikki Haley launching attack ads against each other ahead of their recent head-to-head debate in Iowa. (With inputs from Reuters)

US political ad spending set to surge 30 per cent in 2024, fuelled by digital boom

Tesla, the US electric vehicle giant, has announced a temporary halt to most car production at its Berlin factory from January 29 to February 11. <o:p></o:p>

This is based on a Reuters report.<o:p></o:p>

The company attributes the suspension to a shortage of components caused by shifts in transport routes due to ongoing attacks on vessels in the Red Sea. <o:p></o:p>

This marks the first disclosure of a production interruption directly linked to the Red Sea disruption, a consequence of Iranian-backed Houthi militants targeting vessels in solidarity with Hamas in Gaza.<o:p></o:p>

Several companies, including Geely and Ikea, have already warned of delivery delays.<o:p></o:p>

"The armed conflicts in the Red Sea and the associated shifts in transport routes between Europe and Asia via the Cape of Good Hope are also having an impact on production in Gruenheide," Reuters quoted Tesla saying in a statement.<o:p></o:p>

The extended transportation times are leading to disruptions in supply chains, affecting Tesla's ability to maintain its regular production schedule.<o:p></o:p>

Auto industry analysts predict that other automakers may face similar challenges due to the Red Sea conflict. <o:p></o:p>

Reuters cited Sam Fiorani, the Vice President at AutoForecast Solutions, who emphasised the vulnerability in relying heavily on key components from Asia, especially China, where Tesla sources its battery components. <o:p></o:p>

Fiorani believes that Tesla might be the first, but not the only, automaker facing production issues due to the disrupted supply chain.<o:p></o:p>

The production stop comes at a challenging time for Tesla, as the company is already engaged in a labour dispute with Swedish trade union IF Metall over a collective bargaining agreement. <o:p></o:p>

This has triggered sympathy strikes across the Nordic region. The disruption caused by the Red Sea crisis adds further pressure on Tesla, impacting its production schedule and raising concerns about its ability to meet demand.<o:p></o:p>

While Tesla has not commented on the specific components affected, it stated that full production would resume on February 12. The company is yet to provide details on how it plans to address the missing components and restore production to normal levels. <o:p></o:p>

The Red Sea crisis, instigated by Houthi attacks, has compelled major shipping companies like Maersk and Hapag-Lloyd to reroute their vessels away from the Suez Canal, which accounts for about 12 per cent of global maritime traffic. <o:p></o:p>

This rerouting, via the longer and more expensive journey around South Africa's Cape of Good Hope, adds approximately 10 days to the journey from Asia to Northern Europe, incurring an extra $1 million in fuel costs.<o:p></o:p>

Maersk expects this rerouting to continue for the foreseeable future. <o:p></o:p>

Amid economic uncertainties, European carmakers and analysts have been cautioning that sales in the electric vehicle sector are not growing as anticipated, prompting some companies to reduce prices to stimulate demand.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Tesla, the US electric vehicle giant, has announced a temporary halt to most car production at its Berlin factory from January 29 to February 11. This is based on a Reuters report.

Tesla, the US electric vehicle giant, has announced a temporary halt to most car production at its Berlin factory from January 29 to February 11. This is based on a Reuters report. The company attributes the suspension to a shortage of components caused by shifts in transport routes due to ongoing attacks on vessels in the Red Sea. This marks the first disclosure of a production interruption directly linked to the Red Sea disruption, a consequence of Iranian-backed Houthi militants targeting vessels in solidarity with Hamas in Gaza. Several companies, including Geely and Ikea, have already warned of delivery delays. "The armed conflicts in the Red Sea and the associated shifts in transport routes between Europe and Asia via the Cape of Good Hope are also having an impact on production in Gruenheide," Reuters quoted Tesla saying in a statement. The extended transportation times are leading to disruptions in supply chains, affecting Tesla's ability to maintain its regular production schedule. Auto industry analysts predict that other automakers may face similar challenges due to the Red Sea conflict. Reuters cited Sam Fiorani, the Vice President at AutoForecast Solutions, who emphasised the vulnerability in relying heavily on key components from Asia, especially China, where Tesla sources its battery components. Fiorani believes that Tesla might be the first, but not the only, automaker facing production issues due to the disrupted supply chain. The production stop comes at a challenging time for Tesla, as the company is already engaged in a labour dispute with Swedish trade union IF Metall over a collective bargaining agreement. This has triggered sympathy strikes across the Nordic region. The disruption caused by the Red Sea crisis adds further pressure on Tesla, impacting its production schedule and raising concerns about its ability to meet demand. While Tesla has not commented on the specific components affected, it stated that full production would resume on February 12. The company is yet to provide details on how it plans to address the missing components and restore production to normal levels. The Red Sea crisis, instigated by Houthi attacks, has compelled major shipping companies like Maersk and Hapag-Lloyd to reroute their vessels away from the Suez Canal, which accounts for about 12 per cent of global maritime traffic. This rerouting, via the longer and more expensive journey around South Africa's Cape of Good Hope, adds approximately 10 days to the journey from Asia to Northern Europe, incurring an extra $1 million in fuel costs. Maersk expects this rerouting to continue for the foreseeable future. Amid economic uncertainties, European carmakers and analysts have been cautioning that sales in the electric vehicle sector are not growing as anticipated, prompting some companies to reduce prices to stimulate demand. (With inputs from Reuters)

Tesla Berlin halts production amid Red Sea disruption crisis. Here are the details

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