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European firms look for footing in China-U.S. spat, French execs say
© Reuters. FILE PHOTO: Renault’s chairperson Jean-Dominique Senard looks on during a visit by the French President to the site of the future factory of Japan-based battery maker Envision AESC group, where Renault SA develops an electric-vehicle manufacturing hub, in
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By Mathieu Rosemain and Leigh Thomas
AIX-EN-PROVENCE, France (Reuters) – European firms are concerned they could get caught in the cross-fire of rising economic rivalry between the United States and China, with some officials at a French business conference also frustrated at Europe’s slowness in crafting a response.
Rising trade tensions between the two superpowers are adding to the problems facing politicians and executives as they face a European economy operating at close to standstill, and guessing whether to prepare for a hard or soft landing.
“We’re keeping a particularly close eye on the current tensions between the U.S. and China,” said Florent Menegaux, chief executive of French tyremaker Michelin (EPA:).
“Geopolitics obviously has an influence on the way companies operate,” Menegaux said, adding Michelin was reviewing the sourcing of some components to avoid being too dependent on China.
The search for other sources of raw materials, or reworking supply chains to cut exposure to China – dubbed “de-risking” in the West – was further fuelled by China’s recent restrictions on exports of two key raw materials, gallium and germanium, used in making semiconductors.
“We’re paying for the competition between the United States and China,” Renault (EPA:) Chairman Jean-Dominique Senard said, in reference to the Chinese curbs, as Europe grapples with what he called a “Chinese storm” looming over the electric vehicle industry.
China’s show of force over the supply chain for key metals comes after years of strategic investments and shouldn’t come as a surprise, said Christel Bories, chief executive of mining group Eramet.
“They’ve built monopolies and they use them,” Bories said.
“In the (EV) battery value chain, it’s not just a question of controlling the chain, but also of controlling costs,” Bories said, adding that China was in the midst of building another monopoly over the supply of nickel and cobalt – also key battery components – in Indonesia.
FRUSTRATION OVER IRA
Frustration is also growing among European leaders over the pain that they say could be inflicted by the U.S. Inflation Reduction Act (IRA) on some large industrial groups, whose energy bills are still much higher than in America.
“When we see the impact that the IRA will have (on European companies), I think we haven’t talked enough about it at this conference,” a senior banker said. “There is a big risk that European companies will shift their investments (from Europe to the United States).”
Some say the main concern is the time taken by European Union authorities to respond.
“With the IRA, there’s some stability about what companies should expect” in the United States, Veronika Grimm, one of the German government’s chief economic experts who advises the chancellery, told Reuters.
“Meanwhile in Europe, we debate back and forth whether we should have subsidies and whether we should tax superprofits.”
Attending the conference, Heather Boushey, a member of the White House Council of Economic Advisers, defended the IRA, saying the United States would stick with its trading partners even if it was rethinking its role in the global trading system.
“I understand the frustration, but when you look at the details of the extent to which the United States is subsidising its domestic industry, it is not greater than what the Europeans do themselves,” Boushey said.
The arguments fell on deaf ears among the few Chinese executives attending the conference, noting Europe has become a battlefield not only for Chinese dominance but also for U.S. sway in the tech field.
“Risks don’t come from the East only,” a senior executive of one Chinese group said on the sidelines of the conference. “They can (come) from the West too.”
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Consumers Energy Expanding Community Solar Program with 30-Acre Solar Project in Jackson County
JACKSON, Mich., Sept. 19, 2024 /PRNewswire/ — Consumers Energy plans to break ground next spring on Blackman Solar, a new 30-acre community solar array in its home Jackson County that will provide local clean energy to customers through its Solar Gardens program.
Consumers Energy this week received approval from Blackman Township for the community solar project, which is slated to start generating electricity by the end of 2025.
“Blackman Solar is a great example of a partnership with a community to develop a project that delivers reliable, clean energy as well as local tax and economic benefits,” said David Hicks. Consumers Energy’s vice president of renewable energy development. “We’re grateful for the reception we’ve received from Blackman Township leaders and are excited to continue developing solar projects like this on our path to a carbon-neutral electric grid.”
Blackman Solar will generate power for Consumers Energy’s Solar Gardens community solar program, in which customers choose to support new solar projects without having to own solar arrays.
The new community solar facility will be the fourth that Consumers Energy owns and operates, joining other Solar Gardens projects in Cadillac, at Western Michigan University and at Grand Valley State University. Blackman Solar will include nearly 5,000 solar panels and will generate up to 2.5 megawatts of renewable electricity for 2,500 future Solar Gardens customers.
Blackman Solar also will provide new capacity to expand Consumers Energy’s income-qualified Solar Gardens program MI Sunrise. MI Sunrise is an efficient, easy, cost-effective way for municipalities, nonprofits and tribal governments to deploy federal grant dollars, providing access to clean, reliable renewable energy and measurable financial benefits to offset energy bills.
“Blackman Solar will help meet increased demand for community solar and offers shared solar infrastructure, accessibility and inclusivity, as well as financial and environmental benefits for all customers,” Hicks said.
Consumers Energy is committed to Michigan’s clean energy future. The energy provider is closing its final three coal-burning units next summer, one of the nation’s most aggressive timetables. The company is developing solar projects as part of its Clean Energy Plan to be carbon-neutral by 2040.
Consumers Energy is Michigan’s largest energy provider, providing and/or electricity to 6.8 million of the state’s 10 million residents in all 68 Lower Peninsula counties. Consumers Energy’s Clean Energy Plan calls for eliminating coal as an energy source in 2025, achieving net-zero carbon emissions and meeting 90% of customers’ energy needs through clean sources, including wind and solar.
For more information about Consumers Energy, go to ConsumersEnergy.com.
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MEMPHIS, Tenn., Sept. 19, 2024 /PRNewswire/ — First Horizon (NYSE:) Corp. (NYSE: FHN or “First Horizon“) is proud to announce that First Horizon Bank is now the Official Bank of the University of Louisiana at Lafayette Ragin’ Cajuns.
This five-year agreement expands First Horizon’s long-term commitment to the University and includes a Ragin’ Cajun Visa (NYSE:) Debit card, prominent in-venue signage, entertainment and hospitality opportunities along with participation in game day fan activations and experiences, including the new Cajun Village.
“This is an exciting time to expand our partnership with ULL and ULL athletics,” said Jerry Prejean, President of Acadiana for First Horizon. “With more than $2.5 million invested in recent years towards academic and athletic excellence, First Horizon is proud to deepen our relationship with the University and work together as two long-standing community leaders dedicated to making Acadiana a great place to call home.”
“As opportunities have grown for businesses to support Ragin’ Cajuns athletics, First Horizon Bank has been right there growing with us every step of the way,” adds Brian Bille, General Manager of LEARFIELD-based Ragin’ Cajuns Sports Properties. “Jerry’s commitment to our community has never wavered, and I’m excited to help First Horizon build affinity with our fans through this enhanced partnership, and encourage our fans to add the all-new Ragin’ Cajuns branded debit card to their wallet.”
About First Horizon
First Horizon Corp. (NYSE: FHN), with $82.2 billion in assets as of June 30, 2024, is a leading regional financial services company, dedicated to helping our clients, communities and associates unlock their full potential with capital and counsel. Headquartered in Memphis, TN, the banking subsidiary First Horizon Bank operates in 12 states across the southern U.S. The Company and its subsidiaries offer commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking services. First Horizon has been recognized as one of the nation’s best employers by Fortune and Forbes magazines and a Top 10 Most Reputable U.S. Bank. More information is available at www.FirstHorizon.com.
Investing.com — Oil prices jumped Thursday, riding on a wave of risk-on sentiment as the Federal Reserve’s outsized interest rate cut on Wednesday eased worries that a slowing US economy would further dent crude demand.
At 2:06 p.m. ET (1906 GMT), rose 1.6% to $74.80 a barrel and rose 1.8% to $71.12 a barrel.
Jobless claims rise by less than expected
The number of Americans filing for first-time unemployment benefits rose by less than anticipated last week, with coming in at 219,000 in the week ended on Sept. 14, compared with an upwardly revised 231,000 in the prior week.
Economists had forecast a consensus figure of 230,000.
This figure was better than expected, and has allayed to a degree concerns over the health of the US economy, particularly after the Federal Reserve started its latest rate-cutting cycle on Wednesday, trimming interest rates for the first time since March 2020 by a hefty 50 basis points to a range of 4.75% to 5%.
While lower rates usually bode well for economic activity, the Fed’s aggressive cut sparked some concerns over a potential slowdown in economic growth.
While Fed Chair Jerome Powell helped soothe some of these concerns, he also said that the Fed had no intention of returning to an era of ultra-low interest rates, and that the central bank’s neutral rate was likely to be much higher than seen in the past.
His comments indicated that while interest rates will fall in the near-term, the Fed was likely to keep rates higher in the medium-to-long term.
US inventories fall, but product stockpiles up
Government data released on Wednesday showed a bigger-than-expected, 1.63 million barrel draw in .
While the draw was much bigger than expectations for a draw of 0.2 mb, it was also accompanied by builds in and inventories.
The builds in product inventories sparked increased concerns that U.S. fuel demand was cooling as the travel-heavy summer season wound to a close.
Looking ahead, some expect further draws in domestic crude stocks as exports reaccelerate.
“We look for a significant rebound in exports across crude and products this week. Among products, our preliminary expectations point to draws in gasoline (-1.5 MM BBL) and distillate (-3.7 MM BBL) with a build in jet (+0.5 MM BBL),” Macquarie said in a recent note.
Crude deficit could boost Brent
Still, prices could be bolstered in the near-term by demand possibly outstripping supply in the fourth quarter, according to analysts at Citi.
A reported decision by the Organization of the Petroleum Exporting Countries and its allies to delay the beginning of a tapering in voluntary output cuts, along with ongoing supply losses in Libya, is predicted to contribute to a oil market deficit of around 0.4 million barrels per day in the final three months of 2024, the Citi analysts said.
They added that such a trend could offer some temporary support to Brent “in the $70 to $75 per barrel range.”
Meanwhile, the benchmark could be further boosted by a potential rebound in recently tepid demand from top oil importer China, the analysts said.
But they flagged that they still anticipate “renewed price weakness” in 2025, with Brent on a path to $60 per barrel due to an impending surplus of one million barrels per day.
(Peter Nurse, Ambar Warrick contributed to this article.)
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