Stock Markets
Explainer-What happens as EU concludes investigation of Chinese-made EVs?
By Philip Blenkinsop
BRUSSELS (Reuters) – The European Union formally approved imposing tariffs on Chinese-made electric vehicles (EVs) on Tuesday after an investigation that has divided the bloc and prompted retaliation from Beijing.
The European Commission has set rates ranging from 7.8% for Tesla (NASDAQ:) to 35.3% for China’s SAIC and other producers deemed not to have cooperated with the EU’s anti-subsidy probe. These will be on top of the EU’s standard 10% car import duty.
WHEN AND FOR HOW LONG?
The EU plans to publish its regulation imposing tariffs later on Tuesday or early on Wednesday.
Final or “definitive” tariffs are expected to apply from the following day for five years.
The Commission has decided that provisional duties dating back to July will not be collected. Companies had been able to cover these with a bank guarantee.
The tariff imposition follows a vote on the Commission’s proposal for definitive tariffs by the EU’s 27 members on Oct. 4 – with 10 in favour, five against and 12 abstentions.
CONTINUED TALKS WITH BEIJING
The Commission has said it is willing to continue negotiating an alternative to tariffs with China even after tariffs are imposed. Both sides have agreed to a ninth round of technical negotiations, although the EU said there were “large remaining gaps”.
The EU executive said last month it could re-examine price undertakings – involving minimum import prices and typically volume caps – having previously rejected those Chinese companies have offered.
Previous minimum price deals agreed by the EU have been for homogenous commodities, rather than complex products such as cars. The Commission believes a single minimum price would not be adequate to counter injury caused by subsidies.
It might also have to be different for separate producers, depending on the value of sales and receipt of subsidies.
Beijing has repeatedly warned the Commission against separate negotiations with EV companies. Various manufacturers have authorised the China Chamber of Commerce for Machinery and Electronics to negotiate on their behalf.
The Commission has said any alternative must be in line with World Trade Organization (WTO) rules, adequate to remove the injury due to subsidies, and enforceable.
CHINESE RETALIATION
In moves seen as retaliation, China has launched anti-dumping investigations into EU exports of pork and brandy, and an anti-subsidy probe into EU dairy products, but it has yet to impose any measures.
The EU launched a challenge at the WTO in September against the dairy probe.
China’s Commerce Ministry has also met with automakers and industry associations to discuss raising import duties on large-engined gasoline vehicles, which would hit German producers hardest.
Germany’s exports of vehicles with engines of 2.5 litres or larger to China were worth $1.2 billion last year, Chinese customs data shows.
WHAT HAPPENS AFTER THE INVESTIGATION?
Any company not in the sample group of BYD (SZ:), Geely and SAIC that wishes to have its own individual duty can ask for an “accelerated review” just after the imposition of definitive measures. Such a review should last a maximum of nine months.
The Commission can also carry out an “interim review” after a year has elapsed if the measures are no longer necessary or if they are not sufficient to counteract subsidies.
The Commission often looks into whether producers are evading duties via exports of parts for assembly elsewhere. For the EU, such circumvention exists if 60% or more of the value of parts are imported from the country subject to duties and if the value added in the assembly is no more than 25%.
Companies can dispute the measures at the European Court of Justice. China has already launched a challenge at the WTO. Both legal paths can take well over a year.
The Commission has said it is confident its investigation and measures are compatible with WTO rules.
Stock Markets
Wife of ‘abducted’ Ugandan opposition figure says he won’t get justice
KAMPALA (Reuters) – The wife of Ugandan opposition politician Kizza Besigye has said she does not expect him to get a fair trial after he was detained in neighbouring Kenya, brought home and accused of possessing weapons and other offences in a military court.
Winnie Byanyima said last week her husband was seized as he prepared to attend a book launch in Nairobi on Nov. 16 – in what both rights group Amnesty International and a senior official at Kenya’s foreign ministry have described as an abduction.
Uganda’s government spokesperson, Chris Baryomunsi, said last week his country does not carry out abductions, and that arrests abroad were done in collaboration with host countries, but did not comment on the specific case.
“In the military court, we do not expect to get justice,” Winnie Byanyima told Reuters in an interview in Kampala on Saturday.
“We can only wait for them to appear in a civilian court,” added Byanyima, who is also the Executive Director of U.N. agency UNAIDS.
Byanyima said the charges were politically motivated and urged President Yoweri Museveni “to stop and reflect, because this solution of criminalising and eliminating opposition through criminalisation is wrong”.
Uganda military spokesperson Felix Kulayigye dismissed her statement, saying the court would follow the law.
“We have confidence in the court,” he said. “The court observes the rules and regulations of the country. It’s provided for in our judicial system as a country and it dispenses justice effectively and judiciously.”
Besigye was once an ally and personal physician of Museveni while the now aging leader was in the bush battling the then government in the 1980s.
The two men fell out and Besigye went on to challenge and lose to Museveni in four presidential elections, each time rejecting the results as fraudulent.
Ugandan opposition and rights activists have long accused Museveni’s government of using the military court to punish political opponents, a charge the government denies.
Byanyima said she had visited her husband in prison and he had told her he heard the people who took him speaking a Ugandan language, leading him to conclude that they were Ugandan.
Byanyima urged Uganda’s Western donors, including the U.S. and Britain, to press Ugandan authorities to release her husband.
“They should be speaking out about a government abducting an opposition leader from another country. That should be condemned,” she said.
Rights groups have criticised Kenya for deporting foreign dissidents to face prosecution in their home states. Kenya’s government last week denied having a hand in Besigye’s detention and said it was investigating the matter.
Stock Markets
TriMas opens advanced packaging facility in China
BLOOMFIELD HILLS, Mich. – TriMas (NASDAQ:TRS), a global manufacturer and provider of products for consumer goods, aerospace, and industrial markets, today announced the inauguration of its new packaging facility in Haining, China. The 225,000 square foot site represents a consolidation of two former plants in Hangzhou and Haining into one advanced location designed to enhance service for customers throughout China and Asia.
The facility boasts state-of-the-art automation, including injection molding, assembly capabilities, and autonomous robots such as Automated Guided Vehicles (AGVs). Additionally, it features robotic auto palletizing and a specialized Warehouse Management System (WMS), which collectively aim to improve material handling, decrease labor costs, and reduce safety risks. These upgrades are also part of TriMas’ commitment to sustainability, with energy-efficient systems and waste reduction practices in place.
Thomas Amato, President and CEO of TriMas, expressed enthusiasm about the new Haining facility, emphasizing the company’s dedication to operational excellence and innovation. He highlighted the strategic positioning of TriMas with advanced flagship locations in the United States, Mexico, and now China, which positions the company for continued growth in these significant markets.
The Haining plant is equipped with a quality lab, a 100,000-level clean room, and QS certification, ensuring it meets the stringent food safety standards required in China. It produces a variety of packaging products, including dispensing and airless lotion pumps, foaming pumps, caps, closures, and e-commerce lotion pumps, catering primarily to the beauty and personal care sectors.
TriMas Packaging (NYSE:), a segment of TriMas Corporation, is known for its market-leading brands and manufactures a wide range of dispensing, closure, and flexible packaging solutions for various industries. The company employs approximately 2,200 people across 26 locations globally.
This announcement is based on a press release statement from TriMas.
In other recent news, TriMas Corporation reported a mixed financial performance for its third quarter. The company announced a slight decrease in overall sales to $229 million, a 2.5% drop from the previous year, attributed to lower demand in its Specialty Products segment. However, TriMas saw robust growth in its Packaging and Aerospace segments, with sales up by 12.3% and 4.8% respectively. The company’s adjusted earnings per share (EPS) were impacted by a work stoppage in its Aerospace sector, which led to an estimated $7-$8 million loss in sales.
Despite these challenges, TriMas remains committed to strategic growth, including the planned acquisition of GMT Aerospace. This move is expected to strengthen its European presence and generate additional revenue. The company maintains its 2024 sales growth guidance at 9%-10% and adjusted EBITDA margin at 21%-23%.
These are recent developments that highlight TriMas’s focus on improving its Aerospace and Packaging segments and its commitment to enhancing shareholder value. CEO Thomas Amato emphasized improvements in Packaging margins and robust quoting activity, particularly in the beauty sector, which are expected to support growth moving into 2025.
InvestingPro Insights
As TriMas (NASDAQ:TRS) unveils its new state-of-the-art packaging facility in Haining, China, investors may find additional context from recent financial data and analyst insights. According to InvestingPro, TriMas boasts a market capitalization of $1.1 billion, reflecting its significant presence in the global manufacturing sector.
The company’s focus on operational excellence and innovation, as highlighted in the new facility’s features, aligns with its solid financial performance. InvestingPro data shows that TriMas has been profitable over the last twelve months, with a revenue of $906.52 million. This financial stability supports the company’s expansion efforts in key markets like China.
InvestingPro Tips reveal that TriMas is trading near its 52-week high, which could indicate investor confidence in the company’s growth strategy, including the consolidation of operations in China. Additionally, analysts predict that the company will remain profitable this year, suggesting that initiatives like the new Haining facility may contribute positively to TriMas’ bottom line.
It’s worth noting that TriMas’ P/E ratio stands at 42.05, which some investors might consider high. However, this could be justified by the company’s growth prospects and strategic investments in advanced manufacturing capabilities.
For investors seeking a deeper understanding of TriMas’ financial health and growth potential, InvestingPro offers 7 additional tips, providing a more comprehensive analysis of the company’s market position and future outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Stock Markets
Eight Pennsylvania and New Jersey Nonprofits Share $100K in Donations from NRG Gives Program
” The results of a public online vote determined the amount each nonprofit received ”
PHILADELPHIA–(BUSINESS WIRE)–Eight nonprofits from Pennsylvania and New Jersey collectively received $100,000 in donations after NRG, a leading consumer services and energy company, recently announced the results of its annual charitable-giving program, NRG Gives.
The program, which includes an online public voting process, annually awards a total of $100,000 to nonprofits across the two states. The four nonprofits with the most votes each receive $15,000 and the remaining four nonprofits each receive $10,000.
At NRG, we’re committed to supporting the communities where our employees and customers live and work, said Mike Rombach, Vice President and General Manager at NRG Consumer. It is an honor to celebrate the work of these amazing organizations with donations through this charitable program every year. We look forward to watching these organizations continue to make an impact in their communities.
NRG announced the results recently at their Princeton and Pittsburgh offices. Three of the nonprofits are from New Jersey, and five are from Pennsylvania. The final awards are:
- Associated Charities – $15,000 – Founded in 1911, Associated Charities works to provide food, clothing, medical equipment and supplies, utility assistance, and other services to residents in Titusville and surrounding areas.
- Carson’s Hope – $15,000 “ Carson’s Hope is a charity created to help financially support families dealing with pediatric cancer, as well as pediatric cancer research.
- The Center for Great Expectations – $15,000 – Grounded in a spirituality that treasures the dignity of all, Great Expectations seeks to form a partnership with homeless women‹ who are pregnant and parenting‹ by creating a safe place, a safe presence, and a safe path that enables them to experience, choose and maintain physical, psychological,‹ social and spiritual health for themselves and their children.
- Holiday Express – $15,000 – The Holiday Express mission is to deliver music, food, gifts, financial support and friendship to those with the greatest need for the gift of human kindness during the holiday season and throughout the year.
- Neighborhood Bike Works – $10,000 “Neighborhood Bike Works (NBW), leverages the joy, freedom, and excitement of cycling to engage youth in learning bike repair, providing opportunities to earn bikes, and exploring new places on two wheels. Their bicycle education programs aim to build youth confidence, improve their mobility, and equip them with skills for future employment. Additionally, they enhance access to affordable bikes, bike repair services, and foster positive social interactions within their community for adults as well.
- Pittsburgh Children’s Advocacy Center – $10,000 – The Pittsburgh Children’s Advocacy Center (PCAC) uniquely provides multifaceted support to communities affected by abuse. Their cohesive team delivers counseling and training, assistance in navigating the legal system and advocacy. They succeed when their children thrive.
- PUMP “ Pittsburgh Urban Magnet Project – $10,000 – PUMP’s mission is to make Pittsburgh the most dynamic and diverse place by engaging, educating, and mobilizing all young people to create change in their community.
- The Regina Strong Foundation – $10,000 “ The Regina Strong Foundation mission is to challenge the‹ medical inequities that lead to‹ misdiagnosis, delayed treatment, and a lack of access to quality care. They stand firm in their commitment to ensuring that every person receives the compassionate, thorough health‹ care they deserve.
Since its start in 2016, NRG has donated more than $1 million to more than 50 organizations through the NRG Gives program. NRG Gives is just one of many charitable-giving initiatives under the positiveNRG umbrella which supports nonprofits where NRG customers and employees live and work.
About NRG
NRG Energy (NYSE:), Inc. is a leading energy and home services company powered by people and our passion for a smarter, cleaner, and more connected future. A Fortune 500 company operating in the United States and Canada, NRG delivers innovative solutions that help people, organizations, and businesses achieve their goals while also advocating for competitive energy markets and customer choice. More information is available at www.nrg.com. Connect with NRG on Facebook (NASDAQ:), Instagram, LinkedIn and X.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241125292511/en/
Dan McCunney
484-832-6233
Dan.Mccunney@nrg.com
Source: NRG
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