CHINESE
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FILE PHOTO: A man checks a Byton Concept T car during a media preview at the Auto China 2018 motor show in Beijing, China April 25, 2018. REUTERS/Jason Lee
April 18, 2019
By Yilei Sun and Brenda Goh
SHANGHAI (Reuters) – Chinese electric vehicle (EV) maker Byton, which is facing a management shake-up and questions about funding an expansion, said it has received over 50,000 orders globally for its new SUV model and plans to start production at the end of this year.
“We plan to launch our first production car this July,” Daniel Kirchert, Byton’s co-founder and CEO told Reuters in an interview on Thursday, adding that the company aims to manufacture 10,000 units by the first half of 2020.
Byton’s backers include Chinese retailer Suning, automaker FAW and Contemporary Amperex Technology Co.
Kirchert’s comments, coinciding with the Shanghai Autoshow, come just days after chairman and co-founder Carsten Breitfeld quit Byton.
German daily Handelsblatt said Breitfeld is joining Byton’s domestic rival Iconiq. Another German publication, Manager Magazin, said earlier that Breitfeld’s looming departure was due to trouble funding its planned expansion in the Chinese market, causing tensions inside the company.
Kirchert confirmed the former chairman’s departure and said: “Byton has already got very strong resources, and there are 1,800 employees working on different areas including internet connectivity, engineering research and development.
“We are in the middle of a new round of fundraising, which will be of similar amount to B round. We aim to finish C round around the middle of this year.” Byton had raised $500 million in the series B round last year.
Byton, which runs offices in China, the United States and Germany, is one of several largely Chinese-funded EV startups betting on the benefits of local production to compete with Tesla Inc and other auto giants.
Its local rivals include Nasdaq-listed NIO Inc and Xpeng Motors, backed by Alibaba Group.
Byton aims to hit the 100,000 unit production level around 2021-2022, he said. The 10,000 and 100,000 unit marks are widely regarded as key production milestones for electric vehicle makers.
“Only by large-scale production can we reduce costs and provide affordable prices” he said.
Byton is building its first plant in Nanjing in eastern China with a planned annual capacity of 150,000 units in its initial phase.
China’s auto sales contracted for the first time last year since the 1990s amid a broader economic slowdown but sales of new energy vehicles (NEVs), which include electric vehicles, have remained a bright spot. In March, NEV sales rose 85.4 percent.
(Reporting by Yilei Sun and Brenda Goh; Editing by Muralikumar Anantharaman)
Source: OANN

FILE PHOTO: A logo of Taiwan Semiconductor Manufacturing Co (TSMC) is seen at its headquarters in Hsinchu, Taiwan August 31, 2018. REUTERS/Tyrone Siu
April 18, 2019
By Yimou Lee and Roger Tung
TAIPEI (Reuters) – TSMC, the world’s largest contract chipmaker, posted on Thursday its steepest profit decline in over seven years in the first quarter of the year, amid fears about the impact that slowing electronics demand could have on its business.
TSMC, formally Taiwan Semiconductor Manufacturing Co Ltd, posted net profit of T$61.4 billion ($1.99 billion) for January-March, 31.6 percent less than a year earlier, and the steepest fall since the third quarter of 2011.
The result also lagged the T$64.3 billion average of 21 analyst estimates compiled by Refinitiv.
The company, a proxy for global technology demand as its clients include iPhone maker Apple Inc, Qualcomm Inc and Huawei Technologies Co Ltd, forecast second-quarter revenue of $7.55 billion to $7.65 billion. That would be 2.5 percent to 3.8 percent lower than the year earlier.
It also forecast gross margin for the second quarter of 43 percent to 45 percent, while operating margin will be 31 percent to 33 percent, compared with 47.8 percent and 36.2 percent a year earlier, respectively.
The forecast comes as investors fret about a global tech slowdown after chip suppliers including Samsung Electronics Co Ltd recently flagged weak demand.
Slowing global demand for smartphones, as well as concerns over the prolonged U.S.-China trade war, has also taken a toll on Taiwan’s supply chain manufacturers.
Analysts said TSMC would gradually recover from sluggish smartphone sales in coming months and new demand including for devices equipped with fifth-generation (5G) communications technology could help keep full-year revenue at least broadly flat.
“Fortunately 5G should put TSMC back to growth and help it deliver double-digit earnings per share expansion in 2020 and 2021,” Mark Li, an analyst at Sanford C. Bernstein, wrote in a research note prior to the earnings announcement.
Analysts said TSMC could also benefit from Chinese clients stocking up on semiconductor products in case of any adverse outcome from the U.S.-China trade negotiations.
Revenue in U.S. dollar terms fell 16.1 percent to $7.1 billion in the first quarter, versus the company’s previously estimated range of $7.0 billion to $7.1 billion, and compared with the $7.15 billion average of 22 analyst estimates.
Prior to the earnings announcement, shares in TSMC closed up 1.15 percent versus a 0.6 percent fall in the wider market. The stock has risen around 18 percent so far this year.
(Reporting by Yimou Lee and Roger Tung; Editing by Christopher Cushing)
Source: OANN

FILE PHOTO: The logo of Amazon is seen at the company logistics centre in Boves, France, Jan. 19, 2019. REUTERS/Pascal Rossignol
April 18, 2019
SAN FRANCISCO/SHANGHAI (Reuters) – Amazon.com Inc on Thursday said it is notifying sellers that it will no longer operate a marketplace nor provide seller services on its Chinese website, Amazon.cn, from July 18.
“We are working closely with our sellers to ensure a smooth transition and to continue to deliver the best customer experience possible,” a spokeswoman told Reuters in a statement.
“Sellers interested in continuing to sell on Amazon outside of China are able to do so through Amazon Global Selling.”
(Reporting by Jeffrey Dastin in SAN FRANCISCO; Writing by Brenda Goh in SHANGHAI; Editing by Christopher Cushing)
Source: OANN
A key Naval commander recently told lawmakers that U.S. Indo-Pacific Command needs more funding to help combat the growing threat posed by China.
According to The Wall Street Journal, Adm. Phil Davidson wrote a letter to the Senate Armed Services Committee last month to plead his case.
The 2020 budget, Davidson wrote, falls short on enough funding to support “immediate and necessary resources” for the Indo-Pacific Command, which covers more than 100 million square miles.
Davidson said more funding would support Army units in Asia, air defense units, upgrading Navy guided-missile destroyers, and building a system to defend Guam from attacks.
“I appreciate your continued support and advocacy for those critical capabilities necessary to counter the pernicious actions of our near peer rivals,” Davidson wrote.
China has stepped up its military actions in recent years, which includes building and arming artificial islands in disputed waters of the South China Sea and allegedly shining lasers at U.S. military aircraft.
In December, one Chinese military expert even called on the Chinese to “ram” the next U.S. warship that sails through disputed waters to which China stakes claim.
Source: NewsMax Politics

FILE PHOTO: U.S. dollar and Euro banknotes are seen in this picture illustration taken May 3, 2018. REUTERS/Dado Ruvic/Illustration/File Photo
April 18, 2019
By Shinichi Saoshiro
TOKYO (Reuters) – The euro was buoyant on Thursday after more evidence of strength in China improved the outlook for the global economy, with the market looking next to European indicators to provide the currency with a further boost.
The euro was a shade higher at $1.1298, having eked out a gain of 0.1 percent the previous day.
The single currency has steadily recovered from a recent low of $1.1183 plumbed at the start of April.
The euro was lifted after data on Wednesday showed China’s economy grew at a steady 6.4 percent pace in the first quarter, defying expectations for a further slowdown, as industrial production surged and consumer demand showed signs of improvement.
“A recovering Chinese economy is also good news for the German economy, and thus positive for the euro. The ongoing surge in bund yields amid ‘risk on’ is a key factor supporting the euro,” said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.
The 10-year German bund yield rose to a one-month high of 0.10 percent overnight, in a sharp rebound from a 2-1/2-year low of minus 0.094 percent set at the end of March.
Bund yields had sunk in March as concerns about slowing global growth gripped the broader market. Investors are now watching Chinese and European economic data for signs that the global economy is performing better than initially feared.
The Purchasing Managers Indexes (PMIs) for the manufacturing and service sectors in Europe due later on Thursday will provide the next indication of strength for the European economy.
“Data from China cleared the way for the euro, which needs follow through support in the form of strong euro zone indicators,” Ishikawa at IG Securities said.
The dollar index against a basket of six major currencies was flat at 97.015 after dipping 0.05 percent the previous day.
The U.S. currency was steady at 112.035 yen after briefly touching a four-month peak of 112.17 on Wednesday amid a bounce in U.S. Treasury yields to a one-month high.
Commodity-linked currencies sagged after a surge in crude oil prices ran out of steam.
The Canadian dollar stood at C$1.3352 per dollar, having pulled back from a one-month high of C$1.3275 brushed on Wednesday.
The Australian dollar was down 0.1 percent at $0.7173 after popping up to a two-month peak of $0.7206 the previous day in response to the stronger-than-expected Chinese economic growth data.
(Editing by Jacqueline Wong)
Source: OANN

FILE PHOTO: The logo of Samsung Electronics is seen at its office building in Seoul, South Korea, March 23, 2018. REUTERS/Kim Hong-Ji
April 17, 2019
By Toby Sterling and Ju-min Park
AMSTERDAM/SEOUL (Reuters) – South Korean electronics manufacturer Samsung on Wednesday denied any involvement in an intellectual property theft from supplier ASML.
ASML last week disclosed that former employees took company secrets to U.S. software maker Xtal Inc., which filed for bankruptcy in December after losing a $223 million judgment to ASML over the matter.
The Dutch semiconductor equipment maker’s chief executive Peter Wennink denied initial reports that the Chinese government had been behind the theft, and added that funding for XTAL had come in part from China and in part from Korea.
Wennink reiterated the alleged Korean connection in a TV interview with Dutch broadcaster NOS on Tuesday.
“What we have found evidence for is that the (secrets) were stolen by people of American and Chinese nationality with Chinese background,” he told NOS. “Those products were used to provide services to our largest Korean customer.”
Samsung is ASML’s largest South Korean customer and its largest customer overall. China is a key growth market, and the cause of a bullish 2019 forecast from ASML on Wednesday, along with better-than-expected first-quarter earnings.
Samsung, in an emailed response to questions from Reuters, said it was not involved in the industrial espionage.
“Samsung makes it a top priority to protect and respect the intellectual property rights of others … No products that have resulted from our partnership with Xtal interfere with ASML’s intellectual property,” Samsung said.
“We are deeply disappointed at media reports that had widely assumed or even suggested Samsung’s involvement in any wrongdoing against ASML, which are not true.”
“While we cannot disclose details of our business deals, Samsung had made precautions so as to adhere to all laws and regulations with its development contract with Xtal, including a clause that specifically prohibits the illegal use of third-party IP,” Samsung said.
(Editing by Georgina Prodhan and Alexander Smith)
Source: OANN

FILE PHOTO: The logo of Volkswagen carmaker is seen at the entrance of a showroom in Nice, France, April 8, 2019. REUTERS/Eric Gaillard
April 17, 2019
BRATISLAVA (Reuters) – Volkswagen’s Slovak unit pledged on Wednesday to increase efficiency by 30 percent by 2020 to get ahead of the company-wide savings drive as it seeks to raise its competitiveness within the group.
The country’s biggest car plant and largest private sector employer has seen investment of 2.8 billion euros ($3.16 billion) since 2010 but its focus on SUVs leaves it vulnerable to an EU drive to cut CO2 emissions and VW’s aim to launch almost 70 new electric models by 2028.
Bratislava makes electric versions of the Volkswagen up!, Seat Mii and Skoda Citigo but no plans have yet been made for models built on VW’s electric vehicle platform.
The plant, which made 408,208 cars last year mostly for the Chinese, U.S. and German markets, is in the running to produce several new models, VW Slovak Chief Executive Oliver Grunberg told a news conference.
“To put Slovakia on the forefront of the company’s factories, we aim to increase efficiency by 30 percent already in 2019-2020, five years earlier than the company-wide target,” he said.
The plans include reduction of its 14,800 staff by 3,000 this year and slower wage growth.
“We need (unions) to contribute to raising VW’s competitiveness, perhaps not take two steps ahead but half a step instead,” Grunberg said. “We expect slower wage growth.”
Workers at the factory went on strike two years ago over pay. VW Slovakia agreed then to hike wages by 4.7 percent from June 2017, followed by a 4.7 percent rise in January 2018 and 4.1 percent from last November.
“We will prefer guarantees of job stability over wage growth in the ongoing round of collective bargaining,” VW union chief Zoroslav Smolinsky told Reuters on Wednesday.
(Reporting by Tatiana Jancarikova, editing by Louise Heavens)
Source: OANN

FILE PHOTO: A Hong Kong Airlines Airbus A330-300 passenger plane taxies on the tarmac at the Hong Kong Airport September 11, 2013. REUTERS/Tyrone Siu/File Photo
April 17, 2019
By Jennifer Hughes and Kane Wu
HONG KONG (Reuters) – Hong Kong Airlines, partially owned by China’s HNA Group, was thrown into deeper uncertainty on Wednesday after Hou Wei disputed a decision that removed him as chairman and said he was still in charge of the struggling carrier.
Former Hong Kong Airlines director Zhong Guosong announced on Tuesday he had been appointed chairman after a shareholder meeting where he and Chinese private equity firm Frontier Investment Partner, who together control about 61 percent of the shares, voted in additional board members, including Zhong as chairman.
Hou Wei joined Hong Kong Airlines in September last year, having previously worked for units of HNA’s Hainan Airlines, China’s fourth-largest carrier.
Referring to himself as chairman of the airline, Hou on Wednesday challenged the decision to remove him. In an internal letter sent to employees and shown to Reuters by Hong Kong Airlines, Hou said the board changes were a result of a shareholder dispute and would not have any impact on the company’s operations.
“I will continue to work hand in hand with our leadership team to take concrete actions to secure Hong Kong Airlines’ future,” Hou said.
Hong Kong Airlines Consultation Service Co., which Zhong controls, and Frontier responded by saying that the April 16 meeting was conducted legitimately under proper procedures supported by multiple legal opinions.
“These steps were taken to secure the financial future of Hong Kong Airlines and stop further related party transactions and any embezzlement of company assets amid a period of significant financial stress and reports of serious financial misappropriation,” said the two.
HNA, which holds about 29 percent of the carrier, declined to comment.
The dispute follows another shareholder meeting earlier this month where Hong Kong Airlines executives told investors the company needed to raise at least HK$2 billion ($255.12 million) or risk losing its operating license.
The shareholders reacted angrily, Reuters reported last week, and questioned Hong Kong Airlines’ dealings with other HNA affiliates, demanding the company provide full 2018 financial figures before they would consider providing fresh capital.
Formerly acquisitive HNA – a planes-to-banking Chinese conglomerate – has been working to improve its finances since China cracked down on aggressive debt-fueled foreign dealmaking in mid-2017.
By that point, a $50 billion spree had netted HNA assets including the single largest stake in Deutsche Bank. It has since been reducing its portfolio and last month sold low-cost carrier Hong Kong Express Airways.
On Tuesday, HNA unit CWT International Ltd said it had defaulted on a HK$1.4 billion ($179 million) loan and had less than 24 hours to pay funds due or lose assets pledged as collateral.
(Reporting by Jennifer Hughes, Kane Wu and Julie Zhu; Editing by Muralikumar Anantharaman and Kirsten Donovan)
Source: OANN


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