(C) Reuters. FILE PHOTO: A BMW iX electric vehicle (EV) is seen displayed at the BMW booth during a media day for the Auto Shanghai show in Shanghai, China April 19, 2021. REUTERS/Aly Song
SHANGHAI (Reuters) – Germany’s BMW said on Thursday that production has formally begun at a new plant in China with an investment of 15 billion yuan ($2.24 billion) as the carmaker accelerates electric vehicle (EV) production.
The Lydia plant, BMW’s third car assembly facility in China, located in the northeastern city of Shenyang, Liaoning province, will increase BMW’s annual output in the world’s biggest auto market to 830,000 vehicles from 700,0000 in 2021, the company said.
The plant is designed to be capable of producing battery-powered electric cars only according to market demand on its flexible manufacturing lines, BMW said.
The first model that will roll off the Lydia plant’s production lines is the i3, a pure electric mid-sized sports sedan, BMW said, increasing the range of its EV models for Chinese customers to 13 next year.
Tesla (NASDAQ:TSLA) and Chinese automakers such as BYD dominate the booming EV market in China, with sales more than doubling from a year ago. Meanwhile kings of the internal combustion engine age such as General Motors (NYSE:GM) and Volkswagen (ETR:VOWG_p) are falling behind.
Nearly a quarter of the cars sold in China in the first five months of this year were powered by batteries, according to data from China Association of Automotive Manufactures.
Meanwhile BMW sold 208,507 vehicles in China, its biggest market, in the first quarter, marking a 9.2% drop from a year ago, according to a company filing.
($1 = 6.6983 Chinese yuan renminbi)
BMW starts production at new $2.2 billion China plant to ramp up EV output
Oil Extends Losses As Recession Fears Mount
(C) Reuters. FILE PHOTO: Sticker reads crude oil on the side of a storage tank in the Permian Basin in Mentone, Loving County, Texas, U.S. November 22, 2019. REUTERS/Angus Mordant/
By Yuka Obayashi
TOKYO (Reuters) – Oil prices fell 2% in early trade on Thursday, extending losses from the previous day, as investors worried that aggressive U.S. interest rate hikes could trigger a recession and dent fuel demand.
U.S. West Texas Intermediate (WTI) crude futures fell $2.39, or 2.3%, to $103.80 a barrel by 0031 GMT. Brent crude futures dropped $2.24, or 2.0%, to $109.50 a barrel.
Both benchmarks tumbled around 3% on Wednesday to hit their lowest levels since mid-May.
Investors are continuing to assess how worried they need to be about central banks potentially pushing the world economy into recession as they attempt to curb inflation with interest rate increases.
“Oil markets remained under pressure as investors were concerned that U.S. rate hikes would stall an economic recovery and dampen fuel demand,” said Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd.
“The U.S. and European hedge funds have been selling off their positions ahead of the end of the second quarter, which is also cooling investor sentiment,” he said, predicting the WTI could fall below $100 a barrel before the July 4 holiday in the United States.
The Federal Reserve is not trying to engineer a recession to stop inflation but is fully committed to bringing prices under control even if doing so risks an economic downturn, U.S. central bank chief Jerome Powell said on Wednesday.
U.S. President Joe Biden, meanwhile, called on Congress to pass a three-month suspension of the federal gasoline tax to help combat record pump prices and provide temporary relief for American families this summer.
“The news temporarily boosted the oil product prices, but it was later viewed that even if the gasoline tax was suspended, retail prices would remain high, making it difficult to stimulate demand,” Fujitomi’s Saito said.
The U.S. Energy Information Administration said its weekly oil data, which was scheduled for release on Thursday, will be delayed due to systems issues until at least next week.
Oil extends losses as recession fears mount
Asian Stocks Down After Fed Chair Acknowledges the Risk of a Recession
By Zhang Mengying
Investing.com – Asia Pacific stocks were mostly down on Thursday morning as investors assessed the monetary policy outlook after U.S. Federal Reserve Chair Jerome Powell acknowledged the risk of a recession.
Japan’s Nikkei 225 stabalized by 8:45 PM ET (1:45 AM GMT).
South Korea’s KOSPI edged down 0.10%.
In Australia, the ASX 200 rose 0.30%.
Hong Kong’s Hang Seng was up 0.62%.
U.S. 10-year Treasuries yields declined two basis points to 3.13%.
Investors’ concerns grew as Fed Chair Jerome Powell acknowledged the risk of a recession. Powell said that an aggressive interest rate hike could lead to an economic contraction and called a soft landing “very challenging” in his testimony to the Senate Wednesday.
“We are still in an era where uncertainty is elevated and is expected to remain so for quite a while,” Advisors Capital Management portfolio manager JoAnne Feeney told Bloomberg.
“It’s risky right now in terms of the forward outlook for the global economy. Recession risk has clearly risen.”
Powell “has acknowledged that rates will continue to increase, but the FOMC committee is cognizant of watching incoming data, suggesting the Fed will not be exclusively on autopilot with tightening,” Integrity Asset Management portfolio manager Joe Gilbert told Bloomberg.
Powell will continue his testimony to the House later in the day.
Asian Stocks Down after Fed Chair Acknowledges the Risk of a Recession
Oil Rebounds After Steep Drop, Underpinned by Tight Supplies
(C) Reuters. FILE PHOTO: Yang Mei Hu oil products tanker owned by COSCO Shipping gets moored at the crude oil terminal Kozmino on the shore of Nakhodka Bay near the port city of Nakhodka, Russia June 13, 2022. REUTERS/Tatiana Meel
SINGAPORE (Reuters) – Oil prices recovered on Thursday from a steep drop in the previous session, supported by tight oil supply and peak summer consumption, after a U.S. rate hike sparked fears of slower economic growth and less fuel demand.
Brent crude futures rebounded $1.10, or 0.9%, to $119.61 a barrel by 0202 GMT while U.S. West Texas Intermediate (WTI) crude futures rose to $116.59 a barrel, up $1.28, or 1.1%.
Prices slipped more than 2% overnight after the Federal Reserve raised interest rate by three-quarters of a percentage point, the biggest hike since 1994.
The dollar index came off from its highest since 2002 on Wednesday, easing downward pressure on oil prices. A stronger greenback makes U.S. dollar-priced oil more expensive for holders of other currencies, curtailing demand.
Investors remained focused on tight supplies and robust demand as Western sanctions restricted access to Russian oil, while optimism that China’s oil demand will rebound as it eases COVID-19 restrictions supported the price outlook.
“A rebound in China demand sentiment, and expected seasonal ramp-up in OECD oil demand into August leaves price risk to the upside through 3Q 2022,” said Baden Moore, head of commodities research at the National Australia Bank (OTC:NABZY).
U.S. crude production, which has been largely stagnant over the last few months, edged up 100,000 barrels per day last week to 12 million bpd, its highest level since April 2020, data from the Energy Information Administration showed. [EIA/S]
U.S. crude stocks and distillate inventories rose while gasoline inventories fell in the week through June 10, the EIA said.
Oil rebounds after steep drop, underpinned by tight supplies
Original Post: investing.com
Business4 months ago
ECB’s Lagarde Sees Strong Chance of a Rate Hike This Year
Business4 months ago
Carlos Ghosn ‘surprised’ by French International Arrest Warrant
Business3 months ago
Sinopec Expects China’s Oil Demand to Recover in Q2, Positive Growth in 2022
Business3 months ago
Temasek-backed Oil Rig Builders Agree $6.3 Billion Merger Amid Sector Downturn
Business4 months ago
BOJ’s Kuroda Vows to ‘persistently’ Continue Aggressive Monetary Easing
Uncategorized2 months ago
Gold dips on rising yields after Fed minutes signal patience
Business2 months ago
India Lines up Banks for E-commerce Effort to Take on Amazon, Walmart
Business3 months ago
China Relaxes Some COVID Test Rules for U.S., Other Travellers