Business and Finance News - 7.5.24

Europe Imposes 17.4% to 37.6% Tariffs on Chinese EVs, Effective Friday; Nio and Xpeng May Adjust Prices

• Europe confirmed tariffs on electric vehicles imported from China, effective Friday.

• Tariffs will range from 17.4% to 37.6% on these electric vehicles.

• The levies affect Chinese automakers like BYD and potentially European brands making cars in China.

• The European Commission found Chinese battery EV producers benefit from "unfair" subsidization.

• Nio and Xpeng are maintaining current prices but may adjust due to tariffs.

• The tariffs are provisional, lasting four months, with definitive duties to be voted on.

• Chinese automakers like BYD and Nio are committed to expanding in the European market.

*BYD (BYDDY) - BYD (Build Your Dreams) is a Chinese multinational company that specializes in the development and manufacturing of electric vehicles (EVs), batteries, and renewable energy solutions.

*Nio (NIO) - Nio is a Chinese automobile manufacturer that specializes in designing and producing electric vehicles (EVs). 

*Xpeng (XPEV) - Xpeng is a Chinese electric vehicle (EV) manufacturer that focuses on designing, developing, and producing smart electric cars.

Saks Fifth Acquires Neiman Marcus for $2.65 Billion, Forms Saks Global with Amazon and Salesforce Stakes

• HBC, owner of Saks Fifth Avenue, is buying Neiman Marcus for $2.65 billion.

• Boards of both firms have approved the transaction.

• Neiman Marcus filed for bankruptcy during the pandemic.

• Amazon will take a minority stake in the new company, Saks Global.

• Salesforce will also take a minority stake and provide AI expertise.

• Financing comes from HBC and Apollo Global Management affiliates.

• Saks Global is expected to generate $10 billion in annual sales.

*Amazon (AMZN) - Amazon is a multinational technology and e-commerce company based in the United States, known for its vast online retail platform, cloud computing services through Amazon Web Services (AWS), digital streaming services, and artificial intelligence innovations.

*Neiman Marcus - Neiman Marcus is a department store known for its premium shopping experience and outstanding customer service, Neiman Marcus operates flagship stores in major cities and maintains a strong online presence.

*Saks Fifth Avenue - Saks Fifth Avenue is a luxury department store chain known for offering high-end fashion, accessories, beauty products, and home goods.

*Salesforce (CRM) - Salesforce is a leading cloud-based software company that specializes in customer relationship management (CRM). It provides a comprehensive suite of tools and applications designed to help businesses manage their sales, customer service, marketing, and analytics.

Study Links Wegovy and Ozempic to Increased NAION Risk, Especially in Older Adults

• Wegovy and Ozempic contain semaglutide and are linked to a higher risk of nonarteritic anterior ischemic optic neuropathy (NAION).

• NAION is an eye condition caused by insufficient blood flow to the optic nerve, leading to sudden, painless vision loss in one eye.

• Among semaglutide users for weight loss, NAION rates were 6.7%, compared to 0.8% for others.

• The 36-month study involved 710 adults with diabetes and 979 on weight loss medications.

• Semaglutide users had over four times higher risk of NAION for diabetes, seven times for obesity.

• Novo Nordisk noted the study's limitations and insufficient evidence for a causal link.

• NAION affects older adults more, with 2.3 to 10.2 cases per 100,000 people above age 50.

*Novo Nordisk (NVO) - Novo Nordisk is a global healthcare company headquartered in Denmark, specializing in the development, manufacturing, and marketing of pharmaceutical products and services.

BYD Opens First Southeast Asia EV Factory in Thailand Amid $1.44B Investment Wave

• BYD opened its first electric vehicle factory in Southeast Asia, located in Rayong, Thailand.

• The BYD plant is part of a $1.44 billion investment wave from Chinese EV makers in Thailand.

• Thailand aims to convert 30% of its annual vehicle production to EVs by 2030.

• The new BYD facility will produce 150,000 vehicles per year, including plug-in hybrids.

• BYD's right-hand-drive EVs in Thailand may circumvent EU tariffs on China-made vehicles.

• Thailand is BYD's largest overseas market, with a 46% share of the country's EV segment.

• BYD is also building its first European production base in Hungary, set to launch in three years.

*BYD (BYDDY) - BYD (Build Your Dreams) is a Chinese multinational company that specializes in the development and manufacturing of electric vehicles (EVs), batteries, and renewable energy solutions.

Tesla's Model Y Approved for Chinese Government Purchases, Included in Jiangsu's New Energy Vehicle List

• Tesla's Model Y is now eligible for purchase as a service car by a Chinese government.

• This is the first time Tesla cars have been approved for government purchases in China.

• Jiangsu provincial government included the Model Y in its list of new energy vehicle procurements.

• The list features 54 Chinese-branded EVs and hybrids, plus Tesla's Model Y and Volvo's XC40.

• The number of Model Y cars that can be purchased was not specified.

• Previous bans on Tesla cars in government and military compounds have been lifted.

• Tesla's China-made vehicle deliveries fell 9% in the first half of 2024 compared to 2023.

*Tesla (TSLA) - Tesla, Inc. is an American electric vehicle (EV) and clean energy company.

Here’s how the markets closed on Wednesday (markets were closed yesterday):

• Dow Jones: 39,308.00 -23.85 (-0.06%)

• S&P 500: 5,537.02 +28.01 (+0.51%)

• Nasdaq: 18,188.30 +159.54 (+0.88%)

• Bitcoin (BTC): $58,196.14 (1:30PM PST on 7/4/24)

• Ethereum (ETH): $3,131.58 (1:30PM PST on 7/4/24)

Here’s how the THE SUPER SIX STOCKS did on Wednesday (markets were closed yesterday):

• Microsoft (3.425T): 460.77 +1.49 (+0.32%)

• Apple (3.397T): 221.55 +1.28 (+0.58%)

• Nvidia (3.161T): 128.28 +5.61 (+4.57%)

• Alphabet (2.316T): 187.39 +0.78 (+0.42%)

• Amazon (2.056T): 197.59 -2.41 (-1.21%)

• Meta Platforms (1.294T): 509.96 +0.46 (+0.09%)