Stock Markets
Mexican border crackdown takes heat out of Trump’s migrant jibes
By Diego Oré, Laura Gottesdiener, Ted Hesson and Jose Luis Gonzalez
CIUDAD JUAREZ, Mexico (Reuters) – At a remote military checkpoint in the Mexican desert some 25 miles (40 km) south of the border city of Ciudad Juarez, immigration agents bundled dozens of migrants onto a bus headed south on a hot night in September.
Hundreds of scenes like this one, witnessed on Sept. 24 by a Reuters reporter, form part of Mexico’s largest ever migration crackdown.
The crackdown encompasses a growing program to bus and fly non-Mexican migrants to the country’s south, far from the U.S. border, along with widespread detentions and administrative obstacles, according to public data and conversations with a dozen U.S. and Mexican officials.
Partly as a result of Mexico’s efforts, the number of migrants caught by U.S. authorities at the border in recent months fell sharply to the lowest level since 2020, taking some heat out of an issue on which, polls show, voters trust Republican candidate Donald Trump more than his Democratic rival, Vice President Kamala Harris ahead of the Nov. 5 U.S. presidential election.
“A border perceived to be out of control is fuel for Donald Trump,” said Justin Gest, an immigration expert and professor at George Mason University. Mexico’s crackdown helps the Biden administration throw “water over that fire,” he said.
Collectively, the measures aim to tire migrants so they give up before reaching U.S. territory, five Mexican officials told Reuters. Mexico is on track to bus a third more migrants to its southern states this year, previously unreported data shows.
Venezuelan Jose Díaz was detained by migration agents in the northern border city of Tijuana and then taken by bus over 2,000 miles (3,500 km) to the southern city of Villahermosa, over a three-day journey early in September.
“They send you back and then you have to head north all over again,” he said.
The officials asked not to be named to discuss measures that contrast with the Mexican government’s stated humanitarian migration policy. In response to Reuters questions, Mexico’s foreign ministry said the goal was to protect migrants from human traffickers, not exhaust them.
Now in its tenth month, the crackdown followed pressure from the United States, the Mexican officials told Reuters, including the temporary closure in December of several trade routes into Mexico at an estimated daily cost of $100 million, and explicit requests by U.S. officials in private meetings and in a phone call between President Joe Biden and his Mexican counterpart.
Harris has used the U.S. numbers to argue in her campaign that the Biden administration has been tough on border issues.
While Trump has increasingly turned toward darker and more violent language about immigrants, Mexico itself has been less of a target than in his 2016 campaign.
That is the point of the crackdown, one senior Mexican official said: Mexico is determined not to be the focus of the election.
Newly inaugurated Mexican President Claudia Sheinbaum has said she will work closely with whoever wins the White House, and the foreign ministry said the country’s migration strategy was unrelated to the election. Sheinbaum’s office did not reply to a request for comment.
The Harris campaign declined to comment. The Trump campaign did not respond to requests for comment.
In response to Reuters questions to the White House, a senior official said Mexico acted in its own interests, adding that both sides made “a joint effort to address” the issue. The official requested anonymity as a condition of the interview.
PRESSURE
Starting in late November last year, the United States experienced a spike in border apprehensions, after the Mexican government suspended busing and flying of migrants, citing a funding crunch.
In response, the Biden administration closed several commercial border ports, including busy Texas railway bridges in El Paso and Eagle Pass on Dec. 18, citing the need to redirect personnel to process migrants.
One former senior U.S. Customs and Border Protection official who served under Trump said no such lengthy closures occurred under the former president, despite his repeated threats to shut the border over immigration.
The cost to Mexican companies, around $100 million per day in lost trade according to business lobby Coparmex, dwarfs the $158 million that internal government documents seen by Reuters show Mexico allocated to internal busing and flying of migrants over the previous four years.
On Dec. 22, the day after a call between President Joe Biden and Mexican President Andres Manuel Lopez Obrador and with a visit by U.S. Secretary of State Antony Blinken looming on Dec. 27, the Mexican president said the country had a plan to “strengthen” its migration program.
The buses quickly reappeared, carrying more migrants than before.
The bridge closures were an operational necessity that had the additional benefit of pressuring Mexico, three current and former U.S. officials told Reuters.
It “certainly got Mexico’s attention,” a senior State Department official said.
The move put Mexico “between a rock and a hard place” said one Mexican official, who along with two others said they understood it as a way to force the government’s hand.
Mexico’s foreign ministry, in its response to Reuters questions, said the closures responded mainly to U.S. internal security and were not aimed “specifically at pressuring Mexico.”
In the meetings with Blinken and on a subsequent call with Biden, Mexico offered to do more, the five Mexican government officials said.
In January, Mexico increased checkpoints on highways and railroads heading north.
Starting in March, Mexico’s National Migration Institute, INM, allocated $30 million for local low-cost airline Viva Aerobus to operate migrant flights in 2024, almost triple the amount allocated to the company in 2023, government documents seen by Reuters show. INM allocated around $5 million for migrant transport each year in 2023 and 2024 to airline Magnicharters, the documents showed.
Roberto Alcantara, the owner of Viva Aerobus, also owns coach company Turistar, which INM paid more than $65 million since last year for the busing program, government documents show.
Alcantara, Viva Aerobus, Magnicharters and Turistar did not respond to requests for comment. INM did not reply to questions about the contracts.
Reuters could not establish if other companies had similar contracts.
Mexico’s foreign ministry said the United States does not fund Mexico’s migration program.
The Biden administration’s broad asylum ban implemented in early June has contributed to decreasing U.S. apprehensions, U.S. officials have said. With U.S. funding, Panama in August started regular deportation flights for migrants caught crossing the dangerous Darien jungle, part of U.S. efforts across Central America to keep migrants from reaching Mexico.
Nonetheless, Mexico’s effort has been “absolutely crucial,” for lowering U.S. migrant apprehensions, said Wayne Cornelius, director emeritus of the Mexican Migration Field Research Program at the University of California-San Diego. His comments were echoed by the U.S. and Mexican officials.
At the same time as it increased busing, Mexico slowed immigration and asylum processing. Public data shows a 97% drop this year in issuance of humanitarian visitor cards, a key document migrants use to avoid detentions.
INM permanently closed 10 offices where migrants apply for this document this year, two of the sources said. Refugee applications dropped by half in the first nine months of the year compared to the same period a year earlier, public data shows.
These steps were deliberate measures to make it harder for migrants to traverse the country, three of the Mexican sources said. INM did not respond to a question about the administrative measures.
BUSES
As they boarded the white commercial coach witnessed by Reuters at the Samalayuca military checkpoint near Ciudad Juarez in September, at least one of the migrants had their hands cuffed with parcel ties, Reuters photographs show.
The bus was headed to the city of Monterrey, some 700 miles (1,100 km) to the southeast, and from there the migrants were to be flown further south, a source with knowledge of the operation told Reuters. The news agency could not independently confirm the destination of the bus.
In response to Reuters questions, INM said it carries out immigration control actions “by air, sea and land,” It did not answer questions about the number of migrants, their nationalities, the bus’ destination or custody conditions, including why a man was cuffed.
Mexico’s government calls migrant detentions “rescues” that save people from smugglers. It rarely talks about the busing program in public comments.
However, Ana Saiz, head of the legal advisory unit at Mexico’s public defender’s office, which advises migrants and Mexican citizens, called busing an “illegal practice.” She and other legal experts cited cases where migrants were transported without any record of their detention until reaching the destination in the south, and violations of immigration and custody rules, including consular access.
“There was no communication, no documents, nothing,” said Milka, a Tanzanian migrant, picked up by immigration agents in the northern state of Sonora and transported some 1,500 miles (2,400 km) south to Villahermosa.
Stock Markets
Needham initiates coverage on On Holding with buy rating
Investing.com — Needham on Friday initiated its coverage on On Holding AG (NYSE:) with a “buy” rating and a target price of $64.
Brokerage said On has shown industry-leading growth, with impressive revenue increases and healthy margin expansion. The company is likely to keep growing as it increases brand awareness and gains space with top sneaker retailers worldwide.
“We believe the company has a continued runway for strong growth, as they increase brand awareness and gain shelf space with the biggest and best sneaker retailers in the world,” analyst Tom Nikic wrote in the note.
Needham analyst noted that Roger Federer-backed On was valued at 5 times its expected 2025 revenues, which make stock may seem expensive but strong fundamentals could support continued stock momentum.
“Although valuation metrics are lofty, we believe the shares can continue to exhibit momentum as long as fundamentals”
ON is the fastest growing company in Needham’s coverage, with expected 32% revenue growth in 2024. Its Direct-to-Consumer (DTC) growing 43% year-to-date, compared to 24% growth for wholesale sales.
Brokerage highlighted despite this growth, the brand’s awareness is still relatively low. In major markets like the U.S., U.K., France, and Australia, awareness was under 10% a year ago. However, it’s increasing rapidly, with U.S. awareness doubling to around 20%, and tripling in France.
Stock Markets
Toll Brothers Announces Final Opportunity at Verona Estates Community in Chatsworth, California
CHATSWORTH, Calif., Nov. 22, 2024 (GLOBE NEWSWIRE) — Toll Brothers , Inc. (NYSE:), the nation’s leading builder of luxury homes, today announced the final opportunity to own a new home at Verona Estates, an exclusive gated community in Chatsworth, California. Only a few homes remain available for sale in this prestigious community, including the professionally decorated Siena Modern Farmhouse model home.
The intimate gated enclave of Verona Estates is a rare find showcasing award-winning architecture and innovative home designs. Nestled in an established Chatsworth neighborhood south of the Santa Susana Mountains and adjacent to the Vineyards at Porter Ranch, this exceptional community offers a serene and relaxed atmosphere with the convenience of nearby shopping and easy access to freeways, entertainment, and recreation.
Toll Brothers residents in Verona Estates will enjoy distinctive architecture, quality craftsmanship, luxurious home designs with open floor plans, expansive home sites, and proximity to the future 50-acre Porter Ranch community park. Verona Estates offers generous two-story home designs ranging from 4,700 to 6,000+ square feet, with 5 to 6 bedrooms, 4.5 to 6.5 bathrooms, and 3-car garages. The homes also feature popular floor plan options including prep kitchens, guest suites, floating staircases, indoor and outdoor fireplaces, and more. Move-in ready homes in the community are priced from $1,979,995.
We are thrilled to offer the final opportunity to own a home in the exclusive Verona Estates community, said Nick Norvilas, Division President of Toll Brothers in Los Angeles. The Siena model home is a showcase of luxury and design, and we encourage interested home buyers to visit and experience this exceptional home along with the final few quick move-in homes remaining in the community firsthand.
The Siena Modern Farmhouse model home features designer upgrades throughout, including fully landscaped and furnished interiors, offering an unparalleled living experience. The professionally decorated model home is priced at $2,999,995.
For more information, call 844-700-8655 or visit TollBrothers.com/LA. The Sales Center for Verona Estates is located at 20508 Edgewood Court in Chatsworth and is open by appointment only.
About Toll Brothers
Toll Brothers, Inc., a Fortune 500 Company, is the nation’s leading builder of luxury homes. The Company was founded 57 years ago in 1967 and became a public company in 1986. Its common stock is listed on the New York Stock Exchange under the symbol TOL. The Company serves first-time, move-up, empty-nester, active-adult, and second-home buyers, as well as urban and suburban renters. Toll Brothers builds in over 60 markets in 24 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Indiana, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington, as well as in the District of Columbia. The Company operates its own architectural, engineering, mortgage, title, land development, smart home technology, and landscape subsidiaries. The Company also develops master-planned and golf course communities as well as operates its own lumber distribution, house component assembly, and manufacturing operations.
In 2024, Toll Brothers marked 10 years in a row being named to the Fortune World’s Most Admired Companies™ list and the Company’s Chairman and CEO Douglas C. Yearley, Jr. was named one of 25 Top CEOs by Barron’s magazine. Toll Brothers has also been named Builder of the Year by Builder magazine and is the first two-time recipient of Builder of the Year from Professional Builder magazine. For more information visit TollBrothers.com.
From Fortune, ©2024 Fortune Media IP Limited. All rights reserved. Used under license.
Contact: Andrea Meck | Toll Brothers, Director, Public Relations & Social Media | 215-938-8169 | ameck@tollbrothers.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/cbb8cf4a-a018-4df0-955e-3cf4ab63edeb
Sent by Toll Brothers via Regional Globe Newswire (TOLL-REG)
Verona Estates by Toll Brothers
Toll Brothers announced the final opportunity to own a new home at Verona Estates, including the designer-decorated Siena model home, in Chatsworth, California.
Source: Toll Brothers, Inc.
Stock Markets
Northvolt crisis may be make or break for Europe’s EV battery ambitions
By Marie Mannes, Alessandro Parodi and Stine Jacobsen
STOCKHOLM/GDANSK (Reuters) – Northvolt’s financial collapse deals a blow to Europe’s plan to set up its own battery industry to power electric cars, stirring a debate about whether it needs to do more to attract investment as startups struggle to catch up with Chinese rivals.
Europe’s biggest hope for an electric vehicle battery champion filed for U.S. Chapter 11 bankruptcy protection on Thursday after talks with investors and creditors including Volkswagen (ETR:) and Goldman Sachs for funding failed.
The Swedish company, whose motto is “make oil history”, has received more than $10 billion in equity, debt and public financing since its 2016 start-up. Volkswagen and Goldman Sachs each own about one fifth of its shares.
Northvolt said on Friday it needed $1.0-$1.2 billion in new funds under the restructuring process, which it hopes will end by the end of March.
In recent months, it has shrunk the business and cut jobs in a bid to shore up its finances. But it has struggled to produce sufficient volumes of high-quality batteries, and lost a 2 billion euro ($2.1 billion) contract from BMW (ETR:) in June.
That has left Europe’s ambitions to build its own battery industry looking a distant dream.
In recent years, Northvolt led a wave of European startups investing tens of billions of dollars to serve the continent’s automakers as they switch from internal combustion engines to electric vehicles.
But growth in EV demand is moving at a slower pace than many in the industry projected, and China has taken a huge lead in powering EVs, controlling 85% of global battery cell production, International Energy Agency data shows.
Making batteries and cells, the units that store and convert chemical energy into electricity, is a delicate process and doing so at scale is a challenge for any battery maker.
Northvolt has missed some in-house targets and curtailed production at its battery cells plant in northern Sweden, underscoring the difficulties, Reuters reported on Monday.
“The biggest issue is that batteries are not easy to make and Northvolt haven’t satisfied the supply demands of their customers – that is a management issue,” said Andy Palmer, founder of consultancy Palmer Automotive said.
“The Chinese are technologically 10 years ahead of the West in batteries. That’s a fact,” he said.
At least eight companies have postponed or abandoned EV battery projects in Europe this year, including China’s Svolt and joint venture ACC (NS:), led by Stellantis (NYSE:) and Mercedes-Benz (OTC:).
In 2024, Europe’s battery pipeline capacity out to 2030 has fallen by 176 gigawatt-hours, according to data firm Benchmark Minerals. That’s equivalent to almost all the current installed capacity in Europe, according to Reuters calculations.
RETHINK
Some executives say Europe should do more to attract and support home-grown projects so they can compete with Chinese rivals such as CATL and BYD (SZ:).
“Europe needs to rethink how it supports a nascent sector before China eats up the entire value chain, which is due to smart planning,” said James Frith, European head of Volta Energy Technologies, which specialises in battery and energy storage technology.
Among its $5.8 billion in debts, Northvolt owes the European Investment Bank (EIB) some $313 million.
EIB vice president Thomas Östros said it had been a constructive partner to Northvolt, but it needed to safeguard the EIB and EU’s interests.
“It remains the case that Europe has a strategic interest in a European battery industry for electric cars and we will follow developments very closely. But it is much to early to say what the outcome will be,” he said.
The Swedish government has repeatedly said it does not plan to take a stake in Northvolt.
On Friday, Northvolt’s outgoing CEO and co-founder Peter Carlsson said he was a “little worried” Europe is giving up on its dream of competing with China.
He said Europe would regret it in 20 years time if it retreated.
“It’s not a straight journey and right now, we’re all in a bit of a down in that journey where there’s more hesitations, there’s more questions on the speed of the transition from the carmakers, from policymakers, from the investor community,” he told reporters in a call.
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