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South Korean exports dropped 14% in November, the highest in 2.5 years

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South Korea’s exports fell 14 percent year-on-year to $51.91 billion in November, preliminary data from the Ministry of Commerce, Industry and Energy showed. The November drop was the biggest in 2.5 years since May 2020 and was caused both by the deteriorating global economy, which even a Google price chart showed, and a truckers’ strike in the country.

South Korea exports 2022 – reasons for the drop

Exports fell for the second month in a row. Analysts on average expected an 11% decline, according to Trading Economics. Respondents to MarketWatch predicted a 10.5% decline.

Shipments of semiconductor products overseas, the country’s top export item, fell 29.8%; petrochemicals fell 26.5% and steel exports fell 10.6%. Meanwhile, exports of automobiles jumped 31% and petroleum products 26%.

Exports to China, South Korea’s largest trading partner, fell by 25.5%, and to Asian countries – by 13.9%. Below, supplies to the USA grew by 8% and to the European Union – by 0.1%.

In January-November exports rose by 7.8% on the same period last year and reached a record $629.1 billion.

South Korean imports rose 2.7% to $59.2 billion in November, marking the 23rd consecutive month of gains, but the current rate of growth is the lowest since November 2020. Experts had predicted an increase of only 0.2%.

South Korea’s trade deficit last month was $7.01 billion, compared with a surplus of $2,973 billion a year earlier.

The negative balance was recorded for the eighth month in a row. As a result, by the end of 2022, the country may record a foreign trade deficit for the first time since the financial crisis in 2008.

Earlier we reported that the UN estimates the cost of humanitarian aid in 2023 at a record $51 billion.

Economy

Ford Motor brands cut quarterly net profit 9.4 times

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U.S. automaker Ford Motor Co (NYSE:F). cut net income 9.4 times to $1.3 billion, or 32 cents per share, in the fourth quarter of 2022, down from $12.3 billion, or $3.03 per Ford Motor company stock, in the comparable period a year earlier.

Ford Motor brands adjusted earnings rose to 51 cents per Ford Motor company stock from 26 cents per share a year earlier. The figure was below the 62 cents per share expectations of analysts surveyed by FactSet, the company said in a statement.

Revenue, meanwhile, rose 17% to $44 billion. Experts had forecast revenue of $41.4 billion. The company said in a statement that the results fell short of its expectations, due in part to supply chain and manufacturing instability that led to higher costs and lower-than-expected vehicle production.

For all of 2022, Ford recorded a net loss of $2 billion, compared with a profit of $17.9 billion a year earlier.

Ford is forecasting EBIT of $9 billion to $11 billion this year, but warned that factors such as the U.S. and European recession, a stronger U.S. dollar and higher customer acquisition costs could have a negative impact on the figure.

Ford said earlier this week that it will “significantly increase” production of the Mustang Mach-E electric car in 2023. At the same time, the company sees an opportunity for lower prices for these electric cars in the U.S. Ford Motor Company stocks fell 6.4 percent in additional trading in New York on Thursday. The company’s capitalization has risen 23.1 percent to $55.4 billion since the beginning of the year.

Earlier, we reported that the U.S. suspends the issuance of licenses to U.S. companies to export Huawei technology.

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News US sanctions against Huawei: US suspends licenses to US companies to export technology to Huawei

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impact of US sanctions on huawei

US sanctions against Huawei are expanding. The administration of U.S. President Joe Biden has stopped issuing licenses to U.S. companies to export technology to Huawei, the Financial Times reports.

According to the newspaper’s informed sources, the U.S. Department of Commerce has notified some companies that it will no longer issue licenses to export U.S. technology to Huawei.

Meanwhile, Bloomberg’s interlocutors reported that the Biden administration is considering a complete ban on the sale of U.S. technology to the Chinese telecommunications equipment giant. The agency notes that some officials in the Biden administration are in favor of banning all sales to Huawei, but a final decision has not yet been made.

According to knowledgeable sources, it is still unclear how soon the administration may pass a ban on all Huawei sales. According to some of them, the timing of the decision could coincide with the four-year anniversary of Huawei’s blacklisting. The impact of US sanctions on Huawei is quite serious. 

The U.S. Department of Commerce under former President Donald Trump blocked Huawei in May 2019 as a threat to national security. U.S. firms were prohibited from doing business with companies on the list without special permits.

Earlier we reported that the German economy shrank by 0.2% in Q4.

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Germany economy analysis: economy shrank by 0.2% in Q4

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Germany economy analysis

German economic analysis shows that German GDP fell by 0.2% in the fourth quarter of 2022 compared to the previous three months. according to preliminary data from the German Federal Statistical Office (Destatis). On an annualized basis, the economy grew by 1.1%, adjusted for the number of working days.

Analysts polled by Trading Economics on average expected no change in GDP in quarterly terms and growth of 1.3% in annual terms. At the same time, the German economy provided the country with stability, although the DAX index also fell in price due to recent events.

The main factors of the economic downturn were cuts in consumer spending and industrial production in October and December, said the report. Final data on changes in GDP in the fourth quarter will be published by Destatis on Feb. 24.

At the same time, the statistical office said that “due to the ongoing COVID-19 crisis and the situation in Ukraine, the data are subject to more uncertainty than usual. This points to the possibility of a stronger revision of the figures than initially announced.

According to revised data, German GDP rose 0.5% quarter-over-quarter and 1.3% year-over-year in the third quarter, both estimates up 0.1 percentage points.

Earlier, we reported that analysts predicted a decline in Chinese production.

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