The FT reported on tanker jams in the Turkish straits due to the Russian oil price ceiling, and NATO analysts assessed the Bank of Russia’s foreign currency reserves seized abroad – these and other world economic news now for the morning of Tuesday, December 6, read more.
Economic news around the world
A tanker jam has formed near the Turkish Bosporus and Dardanelles straits, through which ships carrying Crude Oil from Russian Black Sea ports pass. Turkish authorities demanded insurers fully insure ships passing through the straits, after the G7 countries, the European Union and Australia imposed a ceiling on oil prices from Russia, said the Financial Times.
The newspaper’s sources claimed that ships with Western insurance coverage were delayed, while ships with documents from Russian insurers were allowed through Turkish waters.
The U.S. and European Union countries have managed to seize no more than a third of Russia’s foreign currency reserves blocked abroad. According to the Atlantic Council, this is $80-100 billion out of a total of $300 billion in foreign currency reserves.
India is in discussions with Apple (NASDAQ:AAPL) to locate iPad production in the country and is exploring options for shipping components for them from China, CNBC reported, citing two sources close to the Indian government. Plans have no specifics so far, but if negotiations with Indian authorities are successful, Apple will expand its presence in the country.
A federal court in Australia has asked UC Rusal (MCX:RUAL) for documents on alumina supplies to Queensland Alumina (QAL), the aluminum company’s ties with the Russian government and entrepreneurs under sanctions, Kommersant reported, citing court data. The documents were asked by the court on the claim of Alumina and Bauxite Company, an Australian “subsidiary” of UC Rusal: it owned 20% of QAL; the share went to Rio Tinto (LON:RIO), which had the remaining 80% of the company.
Earlier we reported that the average house prices in the UK fell by 1.4% in November.
Ford Motor brands cut quarterly net profit 9.4 times
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.
News US sanctions against Huawei: US suspends licenses to US companies to export technology to 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.
Germany economy analysis: economy shrank by 0.2% in Q4
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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