Tuesday, September 24, 2024

New US rule would require GM, Ford to halt imports of cars they build in China, official says

The Lincoln Nautilus SUV is displayed at the Los Angeles Auto Show in Los Angeles · Reuters

 Mon, September 23, 2024
By David Shepardson

WASHINGTON (Reuters) -General Motors and Ford Motor would need to stop importing vehicles to the U.S. from China under a proposed rule cracking down on Chinese software and hardware, a U.S. Commerce Department official told Reuters Monday.

The rule would also affect other automakers selling or building vehicles in the U.S., such as Volvo Cars and BYD.

GM sells the Buick Envision and Ford sells the Lincoln Nautilus -- both assembled in China -- in the U.S. market. Ford did not comment. In the first six months of 2024, GM sold about 22,000 Envisions and Ford sold 17,500 Nautilus SUVs in the U.S.

"We anticipate at this point that any vehicle that is manufactured in China and sold in the U.S. would fall within the prohibitions," said Liz Cannon, who heads the Commerce Department's information and communications technology office.

GM and Ford are aware, she added, that "going forward" that production in China for the U.S. market "would need to be shut down in China and moved elsewhere."

GM did not address if it thought it would have to halt sales of the Envision but added the "government has an important role to set clear policies" on security issues.

Commerce said it would allow companies to seek a "specific authorization" to continue sales of vehicles or components.

China's BYD North America, a unit of BYD, which builds electric buses in Lancaster, California could be impacted. The company did not immediately comment.

"We will have to work with them to better understand their supply chain," Cannon said. "They will have to come in for a specific authorization."

For example, software would likely be prohibited if it were developed by a team of Chinese employees in that country for a Chinese automaker. But software would likely be allowed if it were developed by Chinese employees working in another country for a non-Chinese company.

Reuters reported in May four Chinese vehicle models are sold inthe U.S. including the Polestar 2 and Volvo's S90 sedans. Polestar and Volvo are affiliates of Chinese automaker Geely.

Cannon said she expects companies like Volvo will meet with Commerce "to work with us to talk about ways that they could mitigate the risk and we are open to that" and the agency could grant them an authorization.

Volvo Cars said "We are reviewing the proposal from the U.S. Commerce Department and are analyzing any potential impact it might have on us and the auto industry in the U.S."

(Reporting by David Shepardson; Editing by David Gregorio)




Union says new Boeing pay offer 'missed the mark'


John BIERS
Mon, September 23, 2024 


IAM International president Brian Bryant, who addressed striking Boeing workers last week, said the union would review the latest offer (Jordan GALE) (Jordan GALE/AFP/AFP)


Union negotiators slammed Boeing's new offer to lift hourly wages for striking workers by 30 percent on Monday, saying it "missed the mark" and won't be voted on by members.

"This proposal does not go far enough to address your concerns, and Boeing has missed the mark with this proposal," union negotiators told members in a message.

"They are trying to drive a wedge between our members and weaken our solidarity with this divisive strategy."

Boeing had sweetened its initial offer in an effort to end a 10-day stoppage that shuttered Seattle-area plants.

"We first presented the offer to the union and then transparently shared the details with our employees," Boeing told AFP in a statement.

"We have bargained in good faith with the IAM (union) since formal negotiations began in March."

The aviation giant gave workers until Friday at midnight to ratify its "best and final offer."

The International Association of Machinists and Aerospace Workers (IAM) said there wasn't enough time to discuss the offer with members and tend to the voting before the Boeing deadline.

"The company has refused to meet for further discussion; therefore, we will not be voting on the 27th," union negotiators told members.

The union noted it will gather workers' opinions regarding the offer.

About 33,000 IAM members from District 751 in the Pacific Northwest region walked off the job on September 13 after overwhelmingly voting down an earlier offer, effectively shutting down assembly plants for the 737 MAX and 777.

The 30 percent general wage increase improves on the 25 percent in the earlier offer, which was initially endorsed by IAM leaders before the rank-and-file workforce rejected it decisively.

Workers have sought a 40 percent wage increase, citing more than a decade of meager pay boosts that have taxed family budgets in a costly region of the United States during a period of consumer price inflation.

The new proposal also reinstates an annual bonus that had been removed in the earlier version.

Line workers had complained that the loss of the bonus meant that the earlier proposal amounted to less than the 25 percent wage hike advertised by the company.

The new proposal also doubles a ratification bonus to $6,000 and lifts the company's contribution to employees' 401K program. But the amended offer does not reinstate the pension, a demand of some workers.

The two sides undertook two days of mediation last week with assistance from government officials.

Boeing CEO Kelly Ortberg said ending the strike was "a top priority."

- Boeing 'could do better' -

Surveys of line workers have shown general wages, the reinstatement of the bonus and the pension as priorities, the IAM has said.

Brian Bryant, president of the IAM international union, said the latest offer from Boeing "validates" the decision to strike.

"Employees knew Boeing executives could do better, and this shows the workers were right all along," Bryant said in a statement.

Boeing employee Mike Corsetti said he looked forward to studying the proposal in detail, saying, "it's closer but I'm not sure it's good enough."

The amended deal maintains other provisions, such as a pledge to build Boeing's next new airplane in the Pacific Northwest.

The strike has added to Boeing's woes as it faces heavy scrutiny from regulators due to safety problems.

Federal Aviation Administrator Mike Whitaker is scheduled to sit for two congressional hearings this week on the agency's oversight of Boeing.

Shares of Boeing ended the formal trading day up two percent.


Boeing makes a 'final offer' to striking workers, but union says it's not good enough

DAVID KOENIG
Updated Mon, September 23, 2024 



Boeing Strike
Boeing workers wave picket signs as they strike after union members voted to reject a contract offer, Sunday, Sept. 15, 2024, near the company's factory in Everett, Wash. 
(AP Photo/Lindsey Wasson)

Boeing said Monday it made a “best and final offer” to striking machinists that includes bigger raises and larger bonuses, but the workers' union said the proposal isn't good enough and there won't be a ratification vote before Boeing's deadline at the end of the week.

The union complained that Boeing publicized its latest offer to 33,000 striking workers without first bargaining with union negotiators.

“Boeing does not get to decide when or if you vote,” leaders of the International Association of Machinists and Aerospace Workers district 751 told members Monday night. “The company has refused to meet for further discussion; therefore, we will not be voting” on Friday, as Boeing insisted.


Boeing said that after two days of talks last week with federal mediators failed to produce an agreement, “we presented a best and final offer that made significant improvements and addresses feedback from the union and our employees.”

The new offer is more generous than the one that was overwhelmingly rejected earlier this month. The company said the offer includes pay raises of 30% over four years, up from 25% in the first proposal. The union originally demanded 40% over three years.

The new offer — and labeling it a final one — demonstrates Boeing’s eagerness to end the strike that began Sept. 13. The company introduced rolling furloughs of non-unionized employees last week to cut costs during the strike.

The strikers face their own financial pressure to return to work. They received their final paychecks last week and will lose company-provided health insurance at the end of the month, according to Boeing.

The company said its new offer is contingent on members of the machinists' union in the Pacific Northwest ratifying the contract by late Friday night, when the strike will be a little over two weeks old.

The union, which represents factory workers who assemble some of the company’s best-selling planes, waited several hours before pushing back Monday night.

“This proposal does not go far enough to address your concerns, and Boeing has missed the mark with this proposal,” the union told members. The group added that it will survey members about the new offer.

Boeing's latest offer includes upfront pay raises of 12% plus three annual raises of 6% each.

It would double the size of ratification bonuses to $6,000. It also would keep annual bonuses based on productivity. In the rejected contract, Boeing sought to replace those payouts with new contributions to retirement accounts.

Boeing said average annual pay for machinists would rise from $75,608 now to $111,155 at the end of the four-year contract.

The new offer would not restore a traditional pension plan that Boeing eliminated about a decade ago. Striking workers cited pay and pensions as reasons why they voted 94.6% against the company’s previous offer.

Boeing also renewed a promise to build its next new airline plane in the Seattle area -- if that project starts in the next four years. That was a key provision for union leaders, who recommended adoption of the original contract offer, but one that seemed less persuasive to rank-and-file members.

The strike is likely already starting to reduce Boeing's ability to generate cash. The company gets much of its cash when it delivers new planes, but the strike has shut down production of 737s, 777s and 767s. Work on 787s continues with nonunion workers in South Carolina.

On Friday, Boeing began requiring thousands of managers and nonunion employees to take one week off without pay every four weeks under the temporary rolling furloughs. It also has announced a hiring freeze, reduced business travel and decreased spending on suppliers.

The money-saving measures are expected to last as long as the strike continues.



Boeing union hits out over 'final' 30% pay rise offer

Peter Hoskins - Business reporter
Tue, September 24, 2024 


Boeing workers have been striking since mid September after rejecting a new contract deal [Getty Images]


The union representing thousands of striking Boeing workers has hit out at what the aircraft manufacturing giant called its "best and final" pay offer, which proposed a 30% rise over four years.

The new offer also included the reinstatement of a performance bonus and improved retirement benefits.

However, the International Association of Machinists and Aerospace Workers (IAM) said the offer was not negotiated with the union and that "it was thrown at us without any discussion" - a claim Boeing denies.


More than 30,000 Boeing workers went on strike earlier this month after rejecting a 25% pay rise offer.

"After listening to our employees and their concerns, Boeing today presented our best and final offer," Boeing said in a letter.

The proposal doubles the value of a one-off bonus for signing a new pay deal to $6,000 (£4,497).

The company said the offer is dependent on it being ratified by union members by midnight pacific time on Friday 27 September (7am GMT on Saturday 28 September).

But IAM said Boeing sent the new offer directly to union members and the media without telling the union's representatives.

"This tactic is a blatant show of disrespect to you - our members - and the bargaining process," IAM said in a post on X, formerly known as Twitter.

The union also said it would not hold a vote of its membership ahead of Boeing's deadline.

In response, Boeing told the BBC: "We have bargained in good faith with the IAM since formal negotiations began in March."

"We first presented the offer to the union and then transparently shared the details with our employees," it added.

Boeing workers strike as they reject 25% pay rise

Boeing suspends jobs for thousands after strike

Boeing workers went on strike from 13 September after rejecting a new contract deal, which included a 25% pay rise over four years.

The union had initially aimed for a number of improvements to workers' packages, including a 40% pay rise.

Almost 95% of the union members - who produce planes including the 737 Max and 777 - voted to reject Boeing's initial offer.

Of those who voted, 96% backed strike action until a new agreement could be reached.

The strike threatens to cost Boeing billions of dollars, deepening the crisis at a company already facing significant challenges.

Its impacts are already being felt across the industry and wider US economy too, as Boeing has halted shipments of most parts and taken other steps to save money.

The company has already suspended the jobs of tens of thousands of staff.

It has also said that US-based executives, managers and staff would be asked to take one week of furlough every four weeks for as long as the walkout lasts.

Government officials are now helping to mediate talks between the two sides.


China Steel Mills Are Facing a Wave of Bankruptcies, BI Says

Bloomberg News
Sun, September 22, 2024 


(Bloomberg) -- China’s steel crisis is setting the stage for a wave of bankruptcies and speeding a much-needed consolidation of the industry, according to Bloomberg Intelligence.

Almost three-quarters of the country’s steelmakers suffered losses in the first half and bankruptcy is likely for many of them, Michelle Leung, a senior analyst at BI, said in a note. Xinjiang Ba Yi Iron & Steel Co., Gansu Jiu Steel Group and Anyang Iron & Steel Group Co. face the highest risk, and could be potential acquisition targets, she said.

The three companies didn’t immediately respond to calls seeking comment.

The wave of consolidation will help Beijing encourage more concentration in its steel industry, BI said. The government wants the top five companies to control 40% of the market by 2025 and the top 10 to account for 60%. These targets look “achievable,” although China will still be well behind South Korea and Japan in this respect, Leung said.

China’s persistent property crisis and flagging economic growth are reshaping the country’s massive steel industry, with the head of its biggest producer, China Baowu Steel Group Corp., warning last month of a crisis worse than in 2008 and 2015. A slump in domestic demand has meant mills have increased exports, spurring a trade backlash from countries who say the metal is being dumped at below cost.

However, China’s steel exports aren’t likely to decline until the end of 2026, as total production falls and more trading partners step up restrictions, according to BI.

On the Wire

China’s housing rescue package offers the best path for putting the country on track to expand around 5%, in the view of most economists, assuming it’s deployed to maximum effect in the face of a real estate crisis expected to last as long as five more years.

China’s banks may carry out a new around of mortgage rate cuts this year to help shore up flagging consumption, the Securities Daily report, citing analysts.

Citigroup Inc.’s expansion plan in China has hit a roadblock with US regulators after the Federal Reserve imposed a penalty on the bank for its data management and risk controls, according to people familiar with the matter.
STATE CAPITALI$M PRIMES THE PUMP

China unleashes stimulus in bid to lift growth

Measure will also make bank lending easier as mortgages cut

Chinese President Xi Jinping. Photograph: Kevin Frayer/Getty Images

Denis Staunton
Tue Sept 24 2024 

China’s central bank has unveiled a broad package of stimulus measures, cutting the cost of existing mortgages and lowering a key interest rate.

The measures, which will also make lending easier by cutting the amount of cash banks need to hold in reserve, come amid warnings that China could miss its gross domestic product (GDP) growth target for 2024 of about 5 per cent.

A three-year long property market slump and a weak labour market have dampened consumer confidence, contributing to a slowdown in economic growth.

But Pan Gongsheng, governor of the People’s Bank of China (PBOC) said guiding lenders to lower interest rates on existing home loans by about 0.5 points should boost consumer spending.

“The reduction in existing mortgage interest rates is expected to benefit 50 million households or 150 million people, reducing household interest expenses by an average of about 150 billion renminbi (€19 billion) per year, which will efficiently boost consumption and investment,” he told a press briefing in Beijing on Tuesday.

The minimum down payment for buying a second home will be cut from 25 per cent to 15 per cent, the same level as for first homes. And the central bank will fully fund a 300 billion renminbi scheme to enable state-owned enterprises to buy unsold apartments for use as affordable housing.

The reserve requirement ratio (RRR) – the amount of cash banks must hold in reserve – will also be cut by 0.5 points, a move Mr Pan said would add one trillion renminbi in liquidity to the banking system. He suggested there could be a further RRR cut of 0.25 or 0.5 points later this year.

The seven-day reverse repo rate, a key short-term interest rate, will drop to 1.5 per cent from 1.7 per cent and benchmark lending and deposit rates will be guided downwards.

“Capital will be injected to different banks in turns and with different policies,” said Li Yunze from the National Financial Regulatory Administration, China’s new financial services regulator, who joined Mr Pan at the briefing.

The central bank governor announced an 500 billion renminbi fund to help stockbrokers, insurance companies and funds to buy equities and the bank will provide a further 300 billion renminbi to help companies to conduct share buy-backs.

Mr Pan said the authorities were looking at the idea of a state-backed stabilisation fund which could help to reinforce confidence in equity markets.

China’s CSI 300 stock market index rose by 4.3 per cent on the back of the announcement, which was unusual in terms of the number and range as well as the significance of the measures unveiled at the same time.

But as investor confidence in China has fallen, the CSI 300 index is down 4 per cent since the beginning of this year and has lost about a third of its value over the past three years.

Recent weeks have seen a succession of disappointing economic data in China and Tuesday brought news the youth unemployment rate hit a record high in August for the second month in a row.

The National Bureau of Statistics (NBS) said that 18.8 per cent of Chinese people in urban areas between the ages of 16 and 24, excluding students, were unemployed.

The overall urban unemployment rate rose slightly to 5.3 per cent and the NBS said the increase was mainly due to college graduates entering the labour market. A record 11.8 million people graduated from Chinese third-level institutions this summer, many of them entering the weakest job market the country has seen for years.



Denis Staunton
 is China Correspondent of The Irish Times



FTSE 100 lifted after Chinese stimulus package boosts global markets

24 September 2024, 17:14

Regulator overhauls UK stock market rules
Regulator overhauls UK stock market rules. Picture: PA

London’s premier index ticked up to end the day 0.28% higher, with most of its early gains cancelled out by the close.

The FTSE 100 nudged upwards on Tuesday after investors were buoyed by economic stimulus measures by China early in the day.

London’s premier index rose 23.05 points, or 0.28%, to end the day at 8282.76, with most of its early gains cancelled out by the close.

AJ Bell head of financial analysis Danni Hewson said: “An early boost to investor sentiment from China’s economic stimulus fizzled out as the day progressed, although mining stocks continued their run of good form.

“There’s still a lot of volatility around as investors second guess last week’s jumbo Fed move and wonder if today’s weak US consumer confidence data heralds a gloomy fourth quarter.

“Coming off the back of another slew of record-breaking highs investors would do well not to read too much into today’s slight cooldown, although there is plenty of other data which might upset the apple cart later in the week.

“London markets have been rather more subdued but there have been some decent individual performances with Raspberry Pi’s first results since IPO proving that UK tech stocks do have legs.”

In European markets, Frankfurt’s Dax index rose 0.75%, while the Cac 40 in Paris had closed up 1.28%.

Stateside, shortly after markets had closed in Europe the S&P 500 had gained 0.23%, while the Dow Jones was 0.12% higher.

On currency markets the pound had gained 0.21% against the dollar at 1.3375 and had dropped 0.15% against the euro at 1.1996.

In company news, budget computer firm Raspberry Pi revealed that profits were stronger than expected in its first update since floating on the London stock market earlier this year.

The stock market debutante told shareholders that revenues jumped by 61% to 144 million US dollars (£107.9 million) over the six months to June 30, compared with the same period a year earlier.

Shares finished 6.61% up for the day.

Elsewhere, retailer Card Factory revealed tumbling profits after seeing costs soar due to higher staff wages after this year’s National Living Wage hike.

The chain, which has more than 1,070 stores across the UK and Ireland, reported a 43% drop in pre-tax profits to £14 million for the six months to July 31.

It said the hit came after its wage bill was sent surging by April’s near 10% increase in the National Living Wage.

Shares plunged 21.12% on Tuesday.

Brent crude oil futures were up 1.475% to 74.99 US dollars as markets were closing in London.

The biggest risers on the FTSE 100 were Anglo American, up 141p to 2263.5p, Antofagasta, up 115p to 1940p, Rio Tinto, up 219.5p to 5049p, Prudential, up 26.2p to 664.8p, and Glencore, up 15p to 399.85p.

The biggest fallers on the FTSE 100 were Smiths Group, down 95p to 1725p, Vistry, down 25p to 1327p, CocaCola HBC, down 40p to 2688p, Howden Joinery, down 13.5p to 933.5p, and Segro, down 11.6p to 871p.

By Press Association

China can't boost its economy because its macro policy is 'too slow and reluctant,' Goldman Sachs says

Kelly Cloonan
Mon, September 23, 2024

China's increased efficiency in manufacturing is likely hurting the labor market.VCG

August economic data shows China's policy moves haven't acted quickly enough, Goldman Sachs says.


The strategists pointed to weak retail sales and potential labor market pressures.


They downgraded their 2024 GDP growth forecast from 4.9% to 4.7%.

China's economy can't seem to catch a break, and Beijing's policy interventions haven't done much to help.


Analysts at Goldman Sachs downgraded their forecast for China's GDP growth from 4.9% to 4.7% — notably lower than the country's target of "around 5%" for the year.

The strategists pointed to weak economic data from last month, with further contracting retail sales and potential labor market pressures. These data points show China's economic policies have been ill-timed, the strategists say.

"Although macro policies have started to ease, they are too slow and reluctant. As a result, the Chinese economy faces more challenges today than even just a few months ago as confidence continues to erode," the analysts said in a Sunday note.

China's slow and incremental monetary, fiscal, and housing policies from the past year have created cycles that promise further weakening ahead, the analysts said.

They pointed in particular to China's efficiency pushes in manufacturing, which are driving strong exports but likely hurting the labor market as the number of jobs created by GDP output trends down.

"For both structural and cyclical policies, the speed of implementation matters as much as the direction of these policies. Pushing high-tech manufacturing and automation too quickly without strengthening unemployment support may lead to labor market pressures," the analysts explained.


If the labor market continues to cool, it could further hurt China's already-slow domestic demand, they said.

Other negative feedback loops include China's elevated real interest rates, which weigh on demand and price inflation, thus lowering inflation expectations and further increasing real interest rates. That creates a cycle of increased rates, the analysts say.

China's failure to respond to local governments' financial crises is also stirring up potential headwinds. Local governments, faced with financing pressures amid a tough property market and continued fallout from earlier spending on Covid-control measures, are implementing tightening policies to make ends meet. Those policies further depress demand and reduce revenue, the analysts said.

"The longer policies stay hesitant and the more often policy implementation disappoints, the more pessimistic households, businesses and investors become," the analysts said.


Falling home prices, meanwhile, are keeping homebuyers out of the market and pushing prices down further. The sluggish housing market is also having spillover effects on steel and cement production, which saw year-over-year declines in August and helped drive down overall retail sales, the strategists say.

"Because of these negative feedback loops, the longer the central government waits, the higher the cost it may eventually have to absorb to shore up demand and confidence," they said.

The analysts add to a growing chorus sounding the alarm on China's growth in recent weeks. Last week, economist Yingrui Wang said China most likely won't reach its growth targets by year-end, pointing to a slowdown in industrial production and continued weak consumer sentiment.

Read the original article on Business Insider
HALT SEA BED MINING

Odyssey wins lawsuit against Mexico to continue seabed mining

The Florida-based company is carrying out phosphate mining off Mexico’s coast.

Alfie Shaw
September 24, 2024
Deep-sea mining activities beyond national jurisdiction are governed by the International Seabed Authority’s (ISA) exploitation regulations.
Credit: divedog/Shutterstock.

Florida-based deep-sea mining company Odyssey Marine Exploration has won a lawsuit against Mexico after the country rejected its environmental permits and shutdown its project without legitimate cause.

After the permits were rejected, the company took Mexico to arbitration and won $37.1m (718.86m pesos) from the country for breaching obligations.

In 2012, Odyssey was granted a concession to mine the Mexican seabed for 50 years. The phosphate deposit, located in waters off the coast of Baja California Sur in the Gulf of Ulloa, is considered one of the biggest in the world.

The extraction process has involved dredging 1km² of the seabed each year without using chemicals. Odyssey said it spent three years working with experts in marine dredging and leading environment scientists to develop an environmentally sustainable development plan, including restoring the seabed back to its original state after dredging and carrying out ecotoxicological tests to demonstrate that dredging has no toxic effects on organisms.

However, the company’s practices have been contested. The Interamerican Association for Environmental Defence, a legal advocacy group, said that phosphate mining is usually carried out on land, and as Odyssey’s offshore project is the first of its kind, it is hard to know what the true environmental impacts will be.

Environmental group Greenpeace is also critical of the lawsuit, fearing its sets a precedent for corporations to overpower local environment groups.

In a statement, the organisation said: “It is unacceptable that [the arbiters] should side with a company that only seeks to continue enriching itself at the expense of the planet’s biodiversity and set a very negative precedent in the fight of civil society against this emerging industry.

“Underwater mining is not acceptable under any circumstances or conditions. There is no place for underwater mining in a sustainable future.”

Odyssey claims its project is necessary to ensure enhanced “fertiliser accessibility to support an ever-growing global population”. Phosphate is a key input in fertilisers.
Operations at Zambia mine suspended after fatality

This is the second death at the open-pit copper and gold mine in the past year.

Regan Slaymaker
September 24, 2024
Credit: Maxar Technologies via Getty Images.

Canadian mining company First Quantum Minerals has revealed it has suspended operations at its Kansanshi copper mine in Zambia after a fatal accident.

The company launched an internal investigation immediately after the accident on Sunday, which involved two mining vehicles that tragically killed an employee.

The company reported revenues of $6.5m (C$8.76m) for the 2023 financial year, a 15.3% decrease from 2022, according to Mining Technology’s parent company GlobalData.

The company released a statement explaining that the area of the accident was immediately secured and mining operations at the site will resume once the investigation has deemed it safe.

This is the second fatality at the Kansanshi mine in the past year following the death of a contractor at another First Quantum facility.

The company’s mining operations in Zambia are now a significant revenue source after its flagship mine in Panama was shut down last December.

The Cobre Panama mine concluded operations after a series of public protests and a court ruling that rescinded First Quantum’s mining contract.

Since the Panama ruling, First Quantum has been forced to restructure its sourcing of capital. It has since signed a $500m, three-year repayment agreement with Chinese mining company Jiangxi Copper to keep the Kansanshi mine operational.



Raspberry Pi profits surge after IPO thanks to new single-board computer

Raspberry Pi's first-half adjusted earnings before nasties jumped by 55%

Orders of its single-board computers and compute modules rose to 3.7m


By Harry Wise
 24 September 2024

Raspberry Pi's profits soared in the first half of 2024 as the group enjoyed strong demand for one of its recently launched single-board computers.

The budget computer maker, which went public on the London markets in June, revealed adjusted earnings before nasties jumped by 55 per cent to $20.9million (£15.6million) in the six months ending June.

It told shareholders it sold 1.1 million units of its Raspberry Pi5 during the period after introducing the product at the end of October last year.

+1


Results: Raspberry Pi revealed its adjusted earnings before nasties jumped by 55 per cent to $20.9million in the six months ending June

This helped drive orders of its single-board computers and compute modules up nearly a third to 3.7 million.

Raspberry Pi also benefited from sales of semiconductor products growing to 2.1 million units and a recovery from the pandemic-related shortages that constrained trade during the first half of 2023.

Its revenue expanded by 61 per cent to $144million, with more than half the increase coming from components sales, as the volume of microchips supplied to the firm's licensees rose amid improving supply chain issues.

The Cambridge-based company expects higher unit volumes during the second half of this year, again supported by new product launches, although it believes profitability will be first-half weighted.

Raspberry Pi just introduced a machine-learning hardware product - the Raspberry Pi AI Kit - in collaboration with technology firm Hailo and cloud connectivity product Raspberry Pi Connect.

The AI Kit came to market about a week before Raspberry Pi's very successful initial public offering, which raised £178.9million for the business.

It told investors it would spend the cash on improving its supply chain, engineering projects, and 'other general corporate purposes.'

Eben Upton, chief executive of Raspberry Pi, said the firm's IPO was the 'watershed moment of the first half'.

The Raspberry Pi listing represents a rare victory for the London markets, which have struggled to attract new IPOs and seen multiple companies bought by foreign firms over the past few years.

Only eight new companies went public on the LSE in the first half of 2024, compared to 47 over the same period three years earlier.

Many firms choose to list in the US instead of the UK because they can potentially access much larger capital pools and gain higher valuations.

Since its June listing, Raspberry Pi has entered the FTSE 250 Index, and its shares have climbed by around a third to 369.8p.

Raspberry Pi shares were up 6.2 per cent on Tuesday morning.

Mark Crouch, market analyst at investment platform eToro, said: 'The potential rewards on offer in the AI industry is no secret, and with that comes a lot of competition, looking for a share of the spoils.

'But with recent data suggesting the value of the AI market could be set to grow by as much as ten times by 2030, more tech investors could be eager for a slice of Raspberry Pi.'

Founded in 2009, Raspberry Pi is the highest-selling British computer ever and is particularly well-loved among hobbyists and amateur coders.

More than 60 million of the firm's single-board computers have been bought in the last decade across over 70 countries.

Their products are often used in edge computing, which is the practice of capturing, processing, and analysing data close to where it is created rather than in a centralised data centre.

Analysts at broker Peel Hunt said: 'Recent sentiment does not distract us from our view that edge computing will do to Raspberry Pi what the desktop did to Microsoft, the smartphone did to Apple, and the data centre is doing to NVIDIA.'
Asos puts hundreds of jobs at risk at head office amid bid to return to profitability

By Chloe Mills
24 September 2024


Asos is set to axe hundreds of jobs at its head office amid mounting losses at the online fashion giant as it attempts to return to profitability, according to reports.




More than 200 jobs are at risk of being cut at as Asos faces a shake-up that is looking at “simplifying the organisation” and returning the business to profit, as reported by The Mirror.

It is understood that a consultation period has begun and that business analysts, engineering managers and platform leads among others at the business are at risk.

In a message sent to staff and seen by the newspaper, Asos said its current setup was “no longer suitable for today’s business priorities and context.” It also said: “We need to move faster and deliver more.”

Asos has also reportedly proposed creating additional roles and said it wants to hire more software engineers and product managers at the business.

Asos said in a statement: “We’ve entered into a collective consultation with members of our technology team around a proposed restructure to drive greater innovation and agility. It would be inappropriate to comment further while the consultation is ongoing.”

Retail Week has contacted Asos for comment.

This follows news earlier this month that Asos has sold a majority stake in the Topshop and Topman brands to a holding company of Danish fashion giant Bestseller.

As part of the joint venture, Asos has retained 25% and Heartland will hold a 75% interest in the venture in a deal worth £135m.

Asos also updated on its current trading performance and said it expects full-year adjusted EBITDA to hit the top end of estimates despite sales being anticipated to fall slightly below the previously pledged guidance.

The update comes as Asos remains focused on its ‘back to fashion’ strategy after a turbulent time of deepening losses and declining revenue.

Speaking earlier this month, Asos boss José Antonio Ramos Calamonte called the beginning of the year a period of “transformation” for the business and said he believes “with a lot of optimism” that the changes being made at the business are “generating the right output”.

Fog of (Dis)Information in Escalating Israel-Lebanon Conflict


NAKED CAPITALISM

As many commentators have noted, Israel’s exploding pager/walkie-talkie attacks, followed by air strikes on a Hezbollah command post and then broadly across Lebanon are a gambit to try to get Lebanon to respond in a manner that would get the US to come in more formally on Israel’s side as the Axis of Resistance is inflicting costs on Israel over its Gaza genocide.

However, the reporting on the large scale terrorist act of the communication-devices-turned-bombs illustrates how corrupted this information environment is. Israel and its cheerleaders have attempted to justify this act as part of an intended military operation, to disrupt Hezbollah’s operations. The only “bad” thing was they executed prematurely.

In fact, as we’ll unpack further below, this tech-bombing was even worse than you imagined. The military wing of Hezbollah does not use pager or walkie talkies. They’ve used their own fiber optic network since 2006, and otherwise rely on couriers. These devices were in the hands of civilian Hezbollah workers, such as members of its large social services effort. Yes, military members may have been hurt too, but that was dumb luck, like being in proximity to blown-up pager-user or picking up a ringing device on behalf of someone else.

Needless to say, this also means that the device attacks were pure terrorism, with no remotely colorable military purpose whatsoeverRemember, the press has brayed that Israel has been working on this caper for 15 years. But Hezbollah moved its military comms to fiber optic before that. And Israel surely knew that. So that means this entire enterprise was from its outset a terrorist scheme and never a military operation.

But why should that be a surprise? This is how Israel has rolled since its Stern Gang days.

Because we are in what Lambert would call an overly-dynamic situation, rather than attempt a state-of-play account, it seemed more productive to alert readers to how the deeply polluted state of Anglosphere reporting. It should be no surprise that it is coming to resemble Western reporting on the Ukraine conflict, as overstating Israeli successes and underplaying or ignoring Hezbollah/Axis of Resistance wins.

This matters because if Israel’s efforts to subdue the Axis of Resistance fall short, which seems likely, the campaign to get the US committed to the conflict will only intensify. Mind you, in reality, it’s not as if we could do all that much even if we wanted to, ex possibly commit more air power. As Associated Press pointed out yesterday, the US has only 40,000 men in the entire theater. They presumably already have things to do. It takes 6+ months to move more men and the needed logistical support in were we to deploy more than say some Special Forces types. And the US is low on materiel world-wide, thanks to having drained our stockpiles to back Ukraine. For instance, one thing the US is short on globally is Patriot air defense missiles, and at least as of now, we are prioritizing Ukraine.

The general tendency for Western reporting to favor our allies dovetails with Israeli press censorship. The Israeli government finds it important to restore if at all possible the image of the IDF as formidable, both to restore its citizens’ once central belief that Israel was safe place for Jews, and to project power in the region.

Yours truly in now finding it necessary to listen to Alastair Crooke’s Monday morning talks on Judge Napolitano to sanity check Israeli claims. Readers may recall that a few weeks ago, we showcased one of these interviews immediately after some much-ballyhooed Israel air strikes into Lebanon. The claim was that Israel had sent in 100 planes and destroyed Hezbollah rocket launchers right before a planned Hezbollah attack, defanging it.

This is what Crooke reported:

Whatever you’ve read is almost certainly wrong. It’s a narrative…..First of all, it all happened at around 4 o’clock in the morning on Sunday. The Israelis started to see people moving in Lebanon and moving towards platforms. Hezbollah was planning the operation to fire drones and rockets at 5:15 on Sunday morning. And Israel started to, an attack, a direct attack. It involved I think about a hundred aircraft.

But contrary to what the Israeli propagandists at the IDF are saying, and I know this not from Hezbollah but I know this from inside Lebanon, people who are on the ground there, it was chaotic twenty minutes. Israel just bombed various valleys where they imagined the ballistic missiles were. But they’d been cleared out of there some time ago. There were no ballistic missiles. You can check that, there are people on the ground who know what’s happened. There are no missiles. So when they said they destroyed thousands of missile launchers, this is a complete lie. Because first of all, there are no missiles, no ballistic missiles, no large missiles south of the Litani River. What you have is drones and small rockets. And none of these have launchers. And they destroyed none of them. It was just a show, a show of force and it only lasted about twenty minutes…..

On top of that, the Hezbollah attack that Sunday morning, in retaliation for the assassination of senior Hezbollah military official Fuad Shukr in Beirut, did take place. Israel immediately clamped down on all reports. At first, Israel claimed the Hezbollah strikes were ineffective (there was Twitter fun about Hezbollah striking a chicken coop, which does seem to have occurred). However, it finally came out that Hezbollah was successful in striking a building in the military airport near Tel Avis that housed Unit 8200, which is akin to our NSA. Hezbollah believed Unit 8200 planned the killing of Fuad Shukr. “Successful” as in some Unit 8200 members died (there is speculation that Hezbollah got a very top level official; I’ve not seen anything convincing either way).

Now let us turn to the series of exchanges that started with barbarism-by-pager. Per Moon of Alabama:

Last week Israel launched a terror attack on Hizbullah operatives who were using pagers to receive alarms and orders. These people were part of the civil administration side of Hizbullah and not its armed fighters.

But since a new trope coming out of the bogus claim that the Hezbollah militia used pagers and didn’t even inspect them is (just like Russians!) that this proves that they are incompetent. So let’s again turn to Alastair Crooke:

The notion that Hizbullah’s communications are crippled is wishful thinking that fails to distinguish between what may be called civil-society Hizbullah, and its military arm.

Hizbullah is a civil movement, as well as a military power. It is the Authority over a significant slice of Beirut and a country – a responsibility that requires the Movement to provide civil order and security. The pagers and radios were used primarily by its civil security forces (effectively a civil police managing security and order in Hizbullah-controlled parts of Lebanon), as well as used by its logistics and support branches. Since these personnel are not combat forces, they were not seen to require truly secure communications.

Even before the 2006 war, Hizbullah ended all cellphone and landline communications in favour of their own dedicated optic cable system and hand-courier messaging for the military cadres. In short, Hizbullah’s communications at the civil level took a major hit, but this will not unduly impact upon its military forces. For years, the Movement has operated on the basis that units could continue with combat, even in the event of a complete rupture of optic communications, or the loss of a HQ.

So again in a close parallel to Ukraine, the real reason for this attack appears to be to try to break the will of the long-suffering Lebanese people and turn them against Hezbollah, just as some collective Ukraine officials fantasize that if they cause enough pain to Russian civilians, they will turn on Putin. At least so far, Lebanese citizens instead appear to be pulling together. Journalist Laith Marouf, now in Beirut, told Rachel Blevins that thousands of citizens came to hospitals offering to donate one of their eyes to a victim of the cyber attack (starting at 9:20). Even though that’s beyond current medical technology, it’s an indication of the depth of public support. Marouf also contends that the Lebanese know what they are up against, that wars of decolonization take years.

A second leg of the attack, coming shortly after the device carnage, was an assassination attempt via precision air strike in Beirut against Hezbollah paramilitary leader Ali Karaki, reportedly one of the top three on Israel’s kill list. The press cheered his death. That turns out to have been premature. From Military Watch:

A senior commander for the Lebanese paramilitary group Hezbollah, Ali Karaki, has survived an Israeli assassination attempt, after a precision strike on a military headquarters in the capital Beirut was launched to eliminate him… Confirmation of his survival follows multiple reports from Western media outlets, citing Lebanese military sources, that the commander was eliminated during an Israeli attack on Beirut’s Madi neighbourhood.

It was a nice touch for Military Watch to point out that the initial Anglosphere accounts cited (or made up) “Lebanese military sources”. Admittedly, it is possible this was disinfo while Karaki was being moved to safety.

Now to the next Israel move, widespread air strikes that extended into Syria. The claim was that they were targeting rocket launchers, So far, they have killed nearly 500. But as for the rockets, we again turn to Alastair Crooke, here on Judge Napolitano. Starting at 9:00:

But for the moment, they have bet on escalation dominance, “escalating to de-escalate,” first the pagers, then the assassination on its heels, and then they’re banking on intelligence and firepower to push Hezbollah into an agreement. But first of all, there was no agreement. Amos Hochstein was in Lebanon but he was acting more for the Israelis and for the Americans, but it was a complete failure, the attempt for some sort of diplomatic route. I mean there isn’t one. It’s been talked about, but there was no agreement, Americans know that, Israelis know that too. So this is really what they are betting on is they can either push Hezbollah in. And to this extent, we’re seeing this massive air attacks taking place in the south and in the Bekka, that you just spoke about. But really what we’re talking about is ineffectiveness of air firepower in these circumstances, when put against deep, deep buried rockets and missiles. In the beginning, in ’23, Hezbollah was looking at losing about 10 men a day. Now they’re not really losing any. There were about 2 Hezbollah who were supposed to be killed but they were religious figures, they din’t have to do with Hezbollah per se, they sadly will be civilian losses.

They are heavily bombing the area, and although it’s being presented as being by intelligence as if they’re knocking out rocket launchers, that too is pretty much bunk. Because they too basically try and find launchers by combing the forest, because this is mountain area, forest area. Very difficult terrain. Deep valleys, little nooks and crannies. So they film all of this, looking for movements, and then they use artificial intelligence detection methodology to try to find where someone has moved. It’s not done by spies or intelligence per se. It is done by using AI, again, to spot some sort of movement. And Hezbollah for years, since 2006, have been adept at putting up ghosts and fake missile launchers, fake men, moving them around, fooling the Israelis who are basically bombing every spot in the forest, hills and valleys where it thinks possibly going to be a rocket launcher….

Crooke also stressed that even the death of a senior commander would only be a tactical loss. As 7:40, he explains that every top Hezbollah officer trains his successor.

Crooke turned to the Hezbollah response, which is to increase the range of territory in Israel that they consider to be fair game for attack. At 14:20:

Hezbollah has escalated too, just to be clear. Because one of the things they are facing again is Israel has put another big blackout notice on everything, no filming, no photos, no reporting at all from anywhere north of Haifa, which is in the center, right on the coast of Israel. No news is allowed to be presented. But you do get some because there are Israelis in the settlements that are sending videos. The point here is there is major destruction in Haifa, a major port. Hezbollah’s reported an attack on an airbase, there are attacks going on, there are rocket continuing. So with all this bombing, all this so-called carpet bombing, it’s actually quite ineffective. It’s not stopping Hezbollah. I emphasize here htat we are seeing rockets, [not sure of name] 1 and 2, which are probably similar to a HIMARS. They’re not guided, they’re not smart. Hezbollah hasn’t even begun to use its smart missiles. They’re using the rockets to create destruction of houses. Nearly a million Israelis were in the shelters last night [Sunday].

Dmitry Liscaris claims in this interview (at 15:13) that Hezbollah attacks took out one of Israel’s three airbases, the Ramat David airbase in the Golan Heights, and a major arms making plant, Rafael Military Industries complex, which makes air defense equipment, as well as hitting targets near Tel Aviv. He also said waves of drones were coming from Iraq.

It has not gotten as much mention in the (far from comprehensive) press I follow, but Twitter does confirm the drone attack:

Without trying to give a comprehensive account of the latest strikes and counter-strikes, Arab News reports a new attack on Beirut killed a different top Hezbollah commander, Ibrahim Qubaisi. With the news blackout in Israel, we don’t (and won’t for a while) have much news on damage and deaths there. Even though Crooke depicted Hezbollah as making a discrete, as opposed to open-ended escalation, such niceties may not count for much