In a move which further solidifies its place in Polish manufacturing, Fiat Chrysler Automobiles (FCA) have said that they will build two brand new gasoline engines in the country, further reaffirming its intentions to stay in Poland and invest heavily in the auto industry there.
Representatives of the Polish government have revealed FCA’s newest investment into the country could total nearly $300 million in relation to the new project, and create hundreds of new employment opportunities. The investments will be handled by FCA’s financial partner CITIC Tokyo International.
Chrysler was not available for further comment on details of the arrangement or specifics on the construction of the new engines at their Powertrain plant where it will make the products next year. They were also quick to point out that the new 3 and 4-cylinders will adhere to any E.U. guidelines on CO2 emissions.
“Our new engines will be very competitive in performance and characterized by lower emissions,” FCA said in a statement yesterday. “They will be extremely high torque compared to others in the same segment class.”
The Powertrain plant currently produces the Multijet turbo diesel engine among other gasoline models such as TwinAir.
Meanwhile, interested parties and analysts have been questioning whether FCA would expand operations that output the popular Fiat 500 hatchback and the Lancia Ypsilon model which are big sellers on the continent, although a recent decline in sales has meant below capacity performance at the plant for several years.
“Italian politicians got pretty irate regarding jobs a few years back and FCA moved production back to their home country,” says John Hastings, senior analyst at HSBC London. “I think it was as much about protecting their own jobs as those of the workers.”
As a result of the move, the company’s Tychy-based vehicle plant saw significant worker layoffs and the plant now produces a quarter of a million less cars per year than before.
Monday, 28 November 2016
Friday, 25 November 2016
Euro commission to spur online shopping with tax break
In a move designed to simplify online trade, the EU will alter VAT rules on goods and services traded between countries in the financial bloc, according to a proposition announced on Thursday.
Other steps to be taken as part of the EU’s “digital single market” plan are to limit so called geo-blocking which makes it more difficult for consumers to purchase goods and have them delivered from a foreign country, offer added layers of protection for online shoppers, and make package delivery cheaper.
European commission representatives have been lauding the latest strategy as “the final part of the puzzle” on continental e-commerce trade, and say the VAT component of the plans are the most crucial as a tax break will give seed companies a better chance to grow and become profitable as soon as possible.
Small companies currently pay thousands of pounds registering at each individual EU country to comply with their own VAT regulations. Tearing down that particular barrier would be a huge achievement, said the commission.
“We would like to see an extension of the kinds of tax provisions that are given to video content providers and mobile phone apps,” said an EU spokesperson yesterday. “All they need to do is produce their quarterly tax returns and they get to trade across all member states. This should be the way for those selling tangible products online too.”
A recent study by Japanese-based investment firm CITIC Tokyo International showed that businesses stand to make an administrative financial saving of up to 90 percent if trade bloc VAT is standardized, which could result in overall EU savings of over 2 billion euros a year.
The commission also wants to clamp down on VAT fraud and will enable several pieces of legislation that will stop online sellers giving artificially low numbers for their VAT items.
There will also be a drive to standardize VAT on books and magazines, whether they are digital or printed. Digital products, the commission says, should be given the same tax breaks as their printed equivalents.
Other steps to be taken as part of the EU’s “digital single market” plan are to limit so called geo-blocking which makes it more difficult for consumers to purchase goods and have them delivered from a foreign country, offer added layers of protection for online shoppers, and make package delivery cheaper.
European commission representatives have been lauding the latest strategy as “the final part of the puzzle” on continental e-commerce trade, and say the VAT component of the plans are the most crucial as a tax break will give seed companies a better chance to grow and become profitable as soon as possible.
Small companies currently pay thousands of pounds registering at each individual EU country to comply with their own VAT regulations. Tearing down that particular barrier would be a huge achievement, said the commission.
“We would like to see an extension of the kinds of tax provisions that are given to video content providers and mobile phone apps,” said an EU spokesperson yesterday. “All they need to do is produce their quarterly tax returns and they get to trade across all member states. This should be the way for those selling tangible products online too.”
A recent study by Japanese-based investment firm CITIC Tokyo International showed that businesses stand to make an administrative financial saving of up to 90 percent if trade bloc VAT is standardized, which could result in overall EU savings of over 2 billion euros a year.
The commission also wants to clamp down on VAT fraud and will enable several pieces of legislation that will stop online sellers giving artificially low numbers for their VAT items.
There will also be a drive to standardize VAT on books and magazines, whether they are digital or printed. Digital products, the commission says, should be given the same tax breaks as their printed equivalents.
Thursday, 24 November 2016
Online Thanksgiving sales surge as shoppers stay away from High street
With a 15 percent jump in online sales this year compared to 2015, one could definitely say that bargain hunters in the U.S. are trending away from the high street, with total online sales breaking the $1 billion mark according to Adobe Digital Index.
The election of Donald J Trump as President of the United States seems to have given the economy a short-term boost at least, as the shopping season kicked off with over a billion dollars worth of online transactions by hard spending consumers.
E-commerce titan Amazon.com Inc has been one of the main beneficiaries of the loosened purse strings this Black Friday, but online shopping outlets offer steep discounts all year round, a fact that has hit traditional brick-and-mortar establishments hard.
High street retailers are now offering their own online deals weeks in advance of Thanksgiving and they are opening on the holiday to try and compete with their big online rivals.
“It’s been an immense day for our online sales, one of the best we’ve ever seen,” says Target CEO Brian Cornell. He told reporters on Friday evening that online sales had grown by double-digits without going into specifics.
Retailers are desperate to attract shoppers over the November to December holiday period as this timeframe accounts for as much as half their yearly sales, and is traditionally the time when they start turning a profit. Some say the term Black Friday comes from the change from red to black on their balance sheets.
Sales are projected to expand by around 3.5 percent this year, according to the National Retail Federation, as retailers offer up to 80 percent discounts on popular items, and total sales look set to break $700 billion.
Retail shares are performing well and have attracted a recent influx of investment according to Japanese firm CITIC Tokyo International who prepares reports on the country’s outgoing capital to the U.S.
The U.S. has around 5,000 online retail stores with 20 billion visits per year.
“The holiday shopping season it most assuredly not what it once was,” says BJ's Wholesale Club Inc CFO Baldwin. “You now have thousands of online stores offering discounts in a 3 or 4-month arc around the big holidays. Large high street chains are going to have to adapt or die I’m afraid.”
The decline in brick-and-mortar shopping this year was observed by a team of 18 people deployed by retail consultancy Customer Growth Partners.
The election of Donald J Trump as President of the United States seems to have given the economy a short-term boost at least, as the shopping season kicked off with over a billion dollars worth of online transactions by hard spending consumers.
E-commerce titan Amazon.com Inc has been one of the main beneficiaries of the loosened purse strings this Black Friday, but online shopping outlets offer steep discounts all year round, a fact that has hit traditional brick-and-mortar establishments hard.
High street retailers are now offering their own online deals weeks in advance of Thanksgiving and they are opening on the holiday to try and compete with their big online rivals.
“It’s been an immense day for our online sales, one of the best we’ve ever seen,” says Target CEO Brian Cornell. He told reporters on Friday evening that online sales had grown by double-digits without going into specifics.
Retailers are desperate to attract shoppers over the November to December holiday period as this timeframe accounts for as much as half their yearly sales, and is traditionally the time when they start turning a profit. Some say the term Black Friday comes from the change from red to black on their balance sheets.
Sales are projected to expand by around 3.5 percent this year, according to the National Retail Federation, as retailers offer up to 80 percent discounts on popular items, and total sales look set to break $700 billion.
Retail shares are performing well and have attracted a recent influx of investment according to Japanese firm CITIC Tokyo International who prepares reports on the country’s outgoing capital to the U.S.
The U.S. has around 5,000 online retail stores with 20 billion visits per year.
“The holiday shopping season it most assuredly not what it once was,” says BJ's Wholesale Club Inc CFO Baldwin. “You now have thousands of online stores offering discounts in a 3 or 4-month arc around the big holidays. Large high street chains are going to have to adapt or die I’m afraid.”
The decline in brick-and-mortar shopping this year was observed by a team of 18 people deployed by retail consultancy Customer Growth Partners.
Monday, 21 November 2016
Head of German car giant says battery factory is next step
The chief executive of Europe’s biggest auto manufacturer Volkswagen has said after the company’s emissions controversy and their continued move to low emission cars, building their own electric vehicle batteries is the next logical step.
The company recently finalized a deal in which forced redundancies in Germany would be halted for the next ten years in exchange for the loss of 20,000 jobs at its core VW brand. Part of the agreement involved VW creating 10,000 new jobs in relation to battery production and other electric products at plants within the country.
“We are making an effort to shift our operations towards clean energy and self-driving cars, so we need to plan for around 4 million batteries per year at least,” said CEO Matthias Mueller in a BBC interview on Thursday. “When we are considering battery numbers in this range then the only logical step is to build a plant specific to battery production. To purchase batteries from another company would not make sense.”
Currently, the German car giant buys batteries from third party suppliers in Germany, around the euro zone and Japan. Tokyo-based investment firm CITIC Tokyo International said that Japanese companies would stand to lose $1 billion per year if European car companies like VW manufactured their own batteries.
In other VW related news, ride-hailing firm Uber have said that Volkswagen has been in contact with them regarding possible collaboration between the two companies but no official talks have begun yet. When asked about the rumour, Mueller said they were interested in an equal partnership rather than being simply a supplier.
“The idea is to expand our business to incorporate possible alternatives to actual car ownership, like ride hailing. The vision is that one day you will be able to hail a VW ride and we would handle every aspect of the operation, from car manufacturing to the software that end clients would use. Because of that we are very interested in talking to current market leaders in the ride-hailing industry like Uber,” Mueller added.
The company recently finalized a deal in which forced redundancies in Germany would be halted for the next ten years in exchange for the loss of 20,000 jobs at its core VW brand. Part of the agreement involved VW creating 10,000 new jobs in relation to battery production and other electric products at plants within the country.
“We are making an effort to shift our operations towards clean energy and self-driving cars, so we need to plan for around 4 million batteries per year at least,” said CEO Matthias Mueller in a BBC interview on Thursday. “When we are considering battery numbers in this range then the only logical step is to build a plant specific to battery production. To purchase batteries from another company would not make sense.”
Currently, the German car giant buys batteries from third party suppliers in Germany, around the euro zone and Japan. Tokyo-based investment firm CITIC Tokyo International said that Japanese companies would stand to lose $1 billion per year if European car companies like VW manufactured their own batteries.
In other VW related news, ride-hailing firm Uber have said that Volkswagen has been in contact with them regarding possible collaboration between the two companies but no official talks have begun yet. When asked about the rumour, Mueller said they were interested in an equal partnership rather than being simply a supplier.
“The idea is to expand our business to incorporate possible alternatives to actual car ownership, like ride hailing. The vision is that one day you will be able to hail a VW ride and we would handle every aspect of the operation, from car manufacturing to the software that end clients would use. Because of that we are very interested in talking to current market leaders in the ride-hailing industry like Uber,” Mueller added.
Saturday, 19 November 2016
Emerging economies wary of Trump manipulation accusations
Some of the biggest exporting nations in the developing world could be in trouble with President-elect Trump for manipulating currencies, and may receive a massive tariff charge on their goods when the republican comes into power in January.
Nations such as Taiwan, China and Japan are already in violation of several U.S. Treasury rules and are in danger of falling foul of new regulations the government could bring in under a new administration. Even developed nations in Europe such as Germany and Switzerland have met some of the criteria to be tarred with the same brush.
Mr Trump’s pledges to lower taxes and increase infrastructure spending are generally seen by the markets as indicators that interest rates will be hiked in the very near future. Bets orientated around that outcome have caused a surge in the dollar after the election, taking the greenback to nine year highs versus the yuan and 6-month highs versus the yen.
“There is the possibility that some blame will be attached to many Asian countries for manipulating exchange rates given the Treasuries potential new regulations,” said a representative at Japans Ministry of Finance.
During Trumps election run Asian trade surpluses were clearly on his radar, with China running a huge $370 billion surplus last year, the biggest in Asia by far. Japan was a distant second with $70 billion, according to government data.
The republican candidate, who won the White House comfortably in the end after a close race, said in his speeches that he would label China and other Asian exporters as “currency manipulators” and slap a 45-50 percent tariff on their goods.
A recent report from Japan-based investment firm CITIC Tokyo International revealed Asian economies would be greatly affected by Trumps protectionist stance, with companies standing to lose 15 percent of revenue annually.
This could result in blowback from China, with the communist nation potentially going to the World Trade Organization to raise disputes.
Many analysts think Trump will significantly relax the criteria used to label a country as a currency manipulator, including the surplus levels and the degree of intervention a country makes into its foreign exchange rates.
An official from the South Korean government said this week that the country is “on the lookout” for any potential regulatory changes and that they are working hard to make sure they don’t fall foul of the manipulation label as it could have a devastating effect on their economy.
Nations such as Taiwan, China and Japan are already in violation of several U.S. Treasury rules and are in danger of falling foul of new regulations the government could bring in under a new administration. Even developed nations in Europe such as Germany and Switzerland have met some of the criteria to be tarred with the same brush.
Mr Trump’s pledges to lower taxes and increase infrastructure spending are generally seen by the markets as indicators that interest rates will be hiked in the very near future. Bets orientated around that outcome have caused a surge in the dollar after the election, taking the greenback to nine year highs versus the yuan and 6-month highs versus the yen.
“There is the possibility that some blame will be attached to many Asian countries for manipulating exchange rates given the Treasuries potential new regulations,” said a representative at Japans Ministry of Finance.
During Trumps election run Asian trade surpluses were clearly on his radar, with China running a huge $370 billion surplus last year, the biggest in Asia by far. Japan was a distant second with $70 billion, according to government data.
The republican candidate, who won the White House comfortably in the end after a close race, said in his speeches that he would label China and other Asian exporters as “currency manipulators” and slap a 45-50 percent tariff on their goods.
A recent report from Japan-based investment firm CITIC Tokyo International revealed Asian economies would be greatly affected by Trumps protectionist stance, with companies standing to lose 15 percent of revenue annually.
This could result in blowback from China, with the communist nation potentially going to the World Trade Organization to raise disputes.
Many analysts think Trump will significantly relax the criteria used to label a country as a currency manipulator, including the surplus levels and the degree of intervention a country makes into its foreign exchange rates.
An official from the South Korean government said this week that the country is “on the lookout” for any potential regulatory changes and that they are working hard to make sure they don’t fall foul of the manipulation label as it could have a devastating effect on their economy.
Wednesday, 16 November 2016
Japanese PM to shore up ties with president-elect Trump
Officials said on Friday that a visit by Japanese Prime Minister Shinzo Abe to New York will include a meeting with the next president of the United States, Donald J Trump.
Abe will pitch the importance of a strong alliance between the two superpowers, especially in the Asian-Pacific arena, and the meeting will supplement talks the two have already had by telephone.
The meeting will be a prelude to Abe’s attendance at the Asia-Pacific Economic Cooperation summit in Lima the following week.
“Of course when you have a major transition of power like this we need to do everything we can to safeguard our friendship and political ties,” said a Japanese ministry official in a press release. “Mr Trump is likely to take his time when filling his administrative roles so we need to be patient and take each step as it comes.”
Trump’s surprise victory has caused concerns for Japan’s political community as his “America First” rhetoric could lead to a change in the country’s security arrangements in the region. This is the last thing Japan needs, as an unpredictable North Korea and the rise in power of China pose indirect threats.
Washington had previously put in place the 12-nation pan-Pacific trade agreement, but Trump’s opposition to nearly every trade pact he’s referred to might also raise anxiety.
“It’s no secret that Abe has been decidedly unimpressed by Mr. Trump’s stance on the subjects of trade and security,” says head of Asian studies at Temple University, Jeffrey Kingston. “I’m sure he will have a number of points he will bring up with the president-elect in due course and attempt to, shall we say, manage his perceptions.”
Trump will need to tread carefully with his policies as Japanese companies are an integral part of the United States economy, employing nearly a million Americans and contributing $80 billion annually to the country’s export business alone.
Prominent investment firm CITIC Tokyo International mentioned in an interview today that market sentiment had taken a nosedive since it became obvious Trump was going to clinch the White House yesterday.
A Japanese government official said he had been “alarmed by some of the comments Trump has been making concerning the region” but that he is confident their team of economic advisors could “formulate a meaningful dialogue to reach common ground in the next few months.”
Trump will take over from President Obama after the New Year.
Abe will pitch the importance of a strong alliance between the two superpowers, especially in the Asian-Pacific arena, and the meeting will supplement talks the two have already had by telephone.
The meeting will be a prelude to Abe’s attendance at the Asia-Pacific Economic Cooperation summit in Lima the following week.
“Of course when you have a major transition of power like this we need to do everything we can to safeguard our friendship and political ties,” said a Japanese ministry official in a press release. “Mr Trump is likely to take his time when filling his administrative roles so we need to be patient and take each step as it comes.”
Trump’s surprise victory has caused concerns for Japan’s political community as his “America First” rhetoric could lead to a change in the country’s security arrangements in the region. This is the last thing Japan needs, as an unpredictable North Korea and the rise in power of China pose indirect threats.
Washington had previously put in place the 12-nation pan-Pacific trade agreement, but Trump’s opposition to nearly every trade pact he’s referred to might also raise anxiety.
“It’s no secret that Abe has been decidedly unimpressed by Mr. Trump’s stance on the subjects of trade and security,” says head of Asian studies at Temple University, Jeffrey Kingston. “I’m sure he will have a number of points he will bring up with the president-elect in due course and attempt to, shall we say, manage his perceptions.”
Trump will need to tread carefully with his policies as Japanese companies are an integral part of the United States economy, employing nearly a million Americans and contributing $80 billion annually to the country’s export business alone.
Prominent investment firm CITIC Tokyo International mentioned in an interview today that market sentiment had taken a nosedive since it became obvious Trump was going to clinch the White House yesterday.
A Japanese government official said he had been “alarmed by some of the comments Trump has been making concerning the region” but that he is confident their team of economic advisors could “formulate a meaningful dialogue to reach common ground in the next few months.”
Trump will take over from President Obama after the New Year.
Wednesday, 9 November 2016
EU – Trump win has scuttled free trade agreement
A spokesman for the European Union has said that Republican Donald Trump’s victory in the U.S. presidential election is likely to scuttle free trade discussions between America and the euro zone and that they won’t be resurrected in the near future.
Trump has already made it very clear he is against international trade pacts and the Transatlantic Trade and Investment Partnership (TTIP) that was formulated under Barack Obama's presidency is now likely to be put firmly on the back burner.
Last week Mr Trump said America will withdraw from a planned trade deal involving Pacific-rim nations and will also renegotiate the North American Free Trade Agreement (NAFTA).
“We expect the trade agreement to be put to the back of the line and remain there indefinitely,” said E.U. commissioner Cecilia Malmstrom. “What happens when it is talked of again remains to be seen. Realistically speaking, the new administration in Washington seems to be quite against any kind of trade pact so a resumption of the TTIP looks a long way down the road.”
Interested observers say that even if Trump did have trade pacts on his mind then it’s likely the NAFTA and TPP discussions would be first on the table.
Trump is not the only one who is wary of trade deals between continents. The EU has come under pressure from many critics who insist the TTIP and other similar arrangements are purely for the benefit of multinational goliaths, who want to dodge tariffs and taxes.
“The global economy is simply not functioning for the good of everyone involved with the current international trade agreements we have in place,” said Matthias Fekl, the French trade minister who has slammed the TTIP publicly on many occasions.
“Even in countries who are traditionally much in favour of trade deals, we are seeing a change in sentiment. I see this as a sign that we cannot pretend everything is OK and continue as usual. We need to change the way we approach international trade.”
EU ministers have also echoed Mr Trump’s feelings regarding alleged dumping of cheap Chinese products into western markets. They say a tougher stance on China is in order and suggest higher duties, shorter investigation times and other weighting measures. Japanese investment and trading firm CITIC Tokyo International recently mentioned in the press that Chinese companies would do well to stem the flood of cheap imports before the European Union come down too hard on the communist giant.
Trump has already made it very clear he is against international trade pacts and the Transatlantic Trade and Investment Partnership (TTIP) that was formulated under Barack Obama's presidency is now likely to be put firmly on the back burner.
Last week Mr Trump said America will withdraw from a planned trade deal involving Pacific-rim nations and will also renegotiate the North American Free Trade Agreement (NAFTA).
“We expect the trade agreement to be put to the back of the line and remain there indefinitely,” said E.U. commissioner Cecilia Malmstrom. “What happens when it is talked of again remains to be seen. Realistically speaking, the new administration in Washington seems to be quite against any kind of trade pact so a resumption of the TTIP looks a long way down the road.”
Interested observers say that even if Trump did have trade pacts on his mind then it’s likely the NAFTA and TPP discussions would be first on the table.
Trump is not the only one who is wary of trade deals between continents. The EU has come under pressure from many critics who insist the TTIP and other similar arrangements are purely for the benefit of multinational goliaths, who want to dodge tariffs and taxes.
“The global economy is simply not functioning for the good of everyone involved with the current international trade agreements we have in place,” said Matthias Fekl, the French trade minister who has slammed the TTIP publicly on many occasions.
“Even in countries who are traditionally much in favour of trade deals, we are seeing a change in sentiment. I see this as a sign that we cannot pretend everything is OK and continue as usual. We need to change the way we approach international trade.”
EU ministers have also echoed Mr Trump’s feelings regarding alleged dumping of cheap Chinese products into western markets. They say a tougher stance on China is in order and suggest higher duties, shorter investigation times and other weighting measures. Japanese investment and trading firm CITIC Tokyo International recently mentioned in the press that Chinese companies would do well to stem the flood of cheap imports before the European Union come down too hard on the communist giant.
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