Overview of TOP weekly news

The problem in the Indian factory

The Renault-Nissan car factory resumed operations last week after workers went on strike due to the danger of a growing number of coronavirus infections at the factory. In response to the problem, the Indian company Renault-Nissan is asking the Tamil Nadu government to recommend appropriate distance measures based on the practices of other car manufacturers at the time of the safety dispute with the workers union.

Moorthy, Secretary-General of the Renault-Nissan India Trade Union, said the worker union would file a counter-proposal. “Other manufacturers need to adopt best practices that we promote, not the other way around. We feel in danger and therefore we are against what the company is doing,” Moorthy said.

According to published data, Tamil Nadu is one of the most affected countries by a coronavirus. Renault-Nissan, Ford Motor and Hyundai Motor Co have written protest letters claiming that hundreds of Chennai workers have become infected by a coronavirus and dozens of them have died.

Apple is negotiating electric batteries

Apple has begun talks with Chinese CATL and BYD about supplying batteries for the planned electric vehicle. Discussions are currently in the early stages, which means that they may change and it is not clear whether an agreement can be reached.

The current trend is set to increase the output of battery manufacturers to meet growing global demand. Car manufacturers are accelerating the transition to electric vehicles to comply with stricter emissions rules aimed at tackling global warming.

According to SNE Research, Chinese battery manufacturers are expected to grow faster than their foreign counterparts due to the expansion of the world’s largest electric car market.*

The United States strongly against China

Relations between the United States and China are intensifying. The United States will attack China with new “strike forces” aimed at combating unfair trade practices, the Biden government said on Tuesday. The statement is a response to a survey of the US approach to critical products, from semiconductors to electric vehicle batteries.

The U.S. Department of Commerce is also considering launching a Section 232 investigation into the national security implications of imports of neodymium magnets used in engines and other industrial uses, which the US is largely importing from China.

Biden said China, as a global leader, would not surpass the United States, so the confrontation of Beijing was one of the few bilateral issues of an otherwise deeply divided Congress. “We will not build everything at home. However, we must see more domestic production capacity for key products,” the US government said.

Tesla fell

Tesla announced during the week the departure of long time CEO Jerome Guillen. This was followed by the cancellation of production of the most expensive variant of the flag limousine, the S Plaid Plus model. The company is also struggling with a shrinking market share as German carmakers are catching up in electrification.

Performance of Tesla’s shares (Source of the graph: Tradingview) [1]  

Bitcoin collapse

The biggest cryptocurrency has fallen again in price after US officials announced the tracking of almost all bitcoin transactions perpetrators of the cyber-attack on the Colonial Pipeline, which last month resulted in the shutdown of the country’s largest pipeline.

Performance of BTC/USD (Source of the graph: Tradingview) [2]

Watch this week:

Thursday, June 10, 2021

The ECB has a meeting scheduled to decide on the amount of government bond purchases and the deposit rate. *

The US will publish the development of core CPI inflation in May. The expectation is 0.4% growth on a month-on-month basis. *

Friday, June 11, 2021

The United Kingdom reports the development of production in April. Analysts expect 1.5% growth on a month-on-month basis. *

Source of the text: Investing, Zerohedge, Financial Times, Reuters, Tradingview

[1,2] Past performance is no guarantee of future results

* Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.

 

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