U.S. Throws Nvidia A Lifeline Amidst China Chip Feud
While stripping China’s access to key U.S. artificial intelligence chips, the Biden administration’s sweeping new rules also quietly threw Nvidia (NVDA.O), Intel (INTC.O) and Advanced Micro Devices (AMD) (AMD.O) a potential lifeline to preserve lucrative business in one of the world’s biggest chip markets.
Wall Street Falls More Than 1% While Yields Rise
U.S. stocks ended sharply lower yesterday, with the S&P 500 and Nasdaq falling more than 1% each, as Treasury yields rose again and investors assessed the latest batch of quarterly corporate results and forecasts. Mounting tensions in the Middle East stoked risk aversion. Safe haven gold hit its highest level in more than two months.
Oil Falls As Israel Embargo Concerns Have Faded
Oil prices fell today, reversing gains in the previous session, after OPEC showed no signs of supporting Iran’s call for an oil embargo on Israel as the U.S. plans to ease Venezuela sanctions to allow more oil to flow globally. Brent futures for December fell to USD 90.76 a barrel while U.S. West Texas Intermediate (WTI) dropped to USD 87.75 per barrel.
Today’s News
The feud between Ford Motor Co. (F.N) and the United Auto Workers (UAW) has been escalating in recent weeks, resulting in an impasse as both refused to budge. However, the latest revised offer from Ford has triggered the UAW to ramp up their actions as it was the same offer that was presented two weeks ago.
“Unfortunately, we had to escalate our actions. We came here today to get another offer from Ford, and they gave us the same exact offer as two weeks ago,” the union said in a post on X (formerly known as Twitter).
The escalated action from the UAW happened yesterday when 8,700 union members at Ford’s Kentucky truck plant went on strike after the union said the No. 2 U.S. automaker refused to compromise during the contract bargaining phase.
UAW shut down Ford’s biggest global plant, halting production of lucrative pickup trucks with little to no warning, in a sharp escalation of the union’s four-week targeted strike against the Detroit Three automakers.
Ford declared yesterday that it is temporarily laying off another 550 employees after the UAW walkouts at the Kentucky Truck Plant and Chicago Assembly Plant.
Other related news include:
Ford Resorts To Top Management Reshuffle
Ford (F.N) announced that a change in top management happened yesterday, promoting combustion vehicle unit chief Kumar Galhotra to the position of chief operating officer, even as the ongoing strike persists.
Galhotra, who previously headed the Ford Blue unit that makes gas and hybrid vehicles, will now lead the automaker’s global industrial system while Andrew Frick, who previously managed Ford Blue’s sales and distribution functions, trucks, SUVs and enthusiast vehicles, and operations in Mexico and Canada, will succeed Galhotra at the unit.
Economic Concerns With U.S. Fuel Plans
Ford (F.N) said that a proposal by President Joe Biden’s administration to hike vehicle fuel economy standards through 2032 threatens to cause “substantial economic hardship” for the No. 2 U.S. automaker.
Ford’s comments represent the latest attack by the auto industry on the National Highway Traffic Safety Administration’s proposal announced in July to increase vehicle fuel efficiency requirements by 2% per year for passenger cars and 4% per year for pickup trucks and SUVs from 2027 through 2032.
Ford Slows E.V. Factory Ramp Due To Demand Fears
Tesla (TSLA.O), General Motors (GM.N) and Ford (F.N) have banded together to slow down on its expansion of electric vehicle (E.V.) production capacity, citing economic uncertainties and underscoring fears of a slowdown in demand.
Ford said last week that it would temporarily cut one of three shifts at the plant that builds its electric F-150 Lightning pickup truck, shifting investment to commercial vehicles and hybrids.
