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U.S. Commerce Department pressing Taiwan to supply more chips to U.S. automakers By Reuters

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U.S. Commerce Department pressing Taiwan to supply more chips to U.S. automakers By Reuters



© Reuters. FILE PHOTO: The logo of Taiwan Semiconductor Manufacturing Co (TSMC) is pictured at its headquarters, in Hsinchu, Taiwan, Jan. 19, 2021. REUTERS/Ann Wang

By David Lawder and David Shepardson

WASHINGTON (Reuters) – The U.S. Commerce Department is pressing Taiwan Semiconductor Manufacturing Co Ltd and other Taiwanese firms to prioritize the needs of U.S. automakers to ease chip shortages in the near term, Commerce Secretary Gina Raimondo said on Tuesday.

Raimondo told a Council of the Americas event that longer term, increased investment was needed to produce more semi-conductors in the United States and that other critical supply chains needed re-shoring, including to allied countries.

“We’re working hard to see if we can get the Taiwanese and TSMC, which is a big company there, to, you know, prioritize the needs of our auto companies since there’s so many American jobs on the line,” Raimondo said in response to a question from a General Motors Co (NYSE:) executive. “As I said, there’s not a day goes by that we don’t push on that.”

Raimondo added that “the medium- and long-term solution, though, is like very simply making more chips in America.”

Since February, President Joe Biden’s administration has been prodding Taiwan on the issue, but automakers have reported no boost in chip supplies.

The Commerce Department is planning a high-level meeting with automakers set to take place next week on the issue, said officials briefed on the matter. A Commerce Department spokesman declined to comment.

United Auto Workers Legislative Director Josh Nassar said in written testimony for a U.S. House hearing on Wednesday that the chips shortage has resulted in the layoffs of “tens of thousands of workers…. Clearly, we need to bolster domestic production of automotive-quality semiconductors.”

Last week, Ford Motor (NYSE:) Co warned the chips shortage may slash second-quarter production by half, cost it about $2.5 billion and about 1.1 million units of lost production in 2021.

GM said on Friday it would extend production halts at several North American factories because of the shortage.

On April 12, Biden convened semiconductor and auto industry executives to discuss solutions to the chip crisis. He backs $50 billion to support U.S. chip manufacturing and research.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Exclusive-ValueAct takes stake in 7-Eleven owner, says changes could boost share price By Reuters

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Exclusive-ValueAct takes stake in 7-Eleven owner, says changes could boost share price By Reuters



© Reuters. FILE PHOTO: A man uses a mobile phone outside a 7-Eleven convenience store in Tokyo, Japan December 6, 2017. REUTERS/Toru Hanai

By Svea Herbst-Bayliss

(Reuters) -Activist investor ValueAct Capital has amassed a $1.53 billion stake in Seven & i Holdings and would like the Japanese owner of the 7-Eleven convenience store chain to consider changes, including a potential break-up.

ValueAct told its investors on Wednesday in a letter seen by Reuters that it built a 4.4% stake in Seven & i and believes that the sum of its parts is worth much more than its current market value.

The hedge fund said the 7-Eleven business could be worth more than double what its parent is currently valued at if the company restructures itself to focus on the convenience stores or if 7-Eleven is spun out.

The new stake in Seven & i marks a return to Japan for ValueAct, where shareholder activism is gaining traction and the firm has considerable experience, having made an investment in Nintendo last year and having previously bet on Olympus Corp and JSR Corp.

Seven & i last year spent $21 billion to buy the Speedway convenience stores.

7-Eleven’s convenience stores are a consistent, high-return business, while Seven & i’s other retail and financial assets, such as real estate have not contributed to cash flow of late even though they are backed by valuable assets, the investment firm noted.

“We invested in Seven & i Holdings at an estimated P/E ratio of 11 times, while global peers trade at 15 times to 25 times,” ValueAct said in the letter.

The company’s shares that are traded in the United States climbed 4% on a day the broader market is down. Seven & i did not immediately respond to a request seeking comment.

ValueAct declined to comment. The investment firm, run by Mason Morfit, is up 18% since January after returning 12.5% last year, an investor in the firm said.

ValueAct underscored the role 7-Eleven could play for Japan in the letter, arguing it could become what McDonald’s Corp (NYSE:) and Starbucks Corp (NASDAQ:) are to the United States, what Inditex (MC:) is to Spain and Aldi is to Germany.

But work is necessary to achieve these goals, ValueAct said noting that 7-Eleven would need to speed up its global digitalization strategy. In the United States it could focus more on food, which can be quickly tailored to tastes, and cut corporate costs.

Over the last months, ValueAct has engaged with Seven & i’s board directors and management and is optimistic that it can continue to build trust and alignment with the company, it said in the letter.

The letter reflects ValueAct’s style of collaborating with management by making suggestions instead of dictating terms to management and the board.

Over decades ValueAct has distinguished itself from other activist investors. While rivals often publicly demand board seats and push management to accept their plans quickly, ValueAct prefers to work behind the scenes, making few public statements or releasing detailed plans for change.

In the letter ValueAct also said that this new investment echoes the firm’s previous investments in Japan.

“The challenges and opportunities facing Seven & i—strategy, organizational design, digitalization and ESG—are very familiar to us,” the letter said. ValueAct has helped facilitate sales of businesses at Olympus and JSR.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Volvo Cars looking to list on Nasdaq Stockholm this year By Reuters

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Volvo Cars looking to list on Nasdaq Stockholm this year By Reuters



© Reuters. FILE PHOTO: A long exposure picture shows cars of Swedish automobile manufacturer Volvo displayed in front of a showroom of Stierli Automobile AG company in St. Erhard, Switzerland April 11, 2019. REUTERS/Arnd Wiegmann

STOCKHOLM (Reuters) – Swedish automaker Volvo Cars said on Wednesday it is considering listing on the Nasdaq Stockholm stock exchange this year.

The company, which is owned by China’s Geely Holding Group, also said it extended Chief Executive Hakan Samuelsson’s contract to the end of 2022.

Geely’s Hong Kong-listed unit Geely Automobile and Volvo Cars scrapped a merger plan in February.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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BP climate resolution supported by a fifth of shareholder votes By Reuters

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BP climate resolution supported by a fifth of shareholder votes By Reuters



© Reuters. FILE PHOTO: The logo of BP is seen at a petrol station in Kloten, Switzerland October 3, 2017. REUTERS/Arnd Wiegmann/File Photo

LONDON (Reuters) – A resolution from a climate activist group asking BP (NYSE:) to set tougher climate targets was rejected at the company’s annual general meeting on Wednesday but gained support from more than a fifth of shareholders voting at the meeting, a filing showed.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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