Presys A/S

Honda and Nissan have begun talks toward a potential merger due to the growing threat from Chinese EV makers Honda and Nissan have begun talks toward a potential merger, marking a historic shift for Japan's auto industry due to the growing threat from Chinese EV makers, according to Reuters. https://reut.rs/4gPFRra The merger would create the world's third-largest auto group by vehicle sales, following Toyota and Volkswagen. This integration would provide both companies with the scale and resources needed to compete against Tesla and agile Chinese rivals like BYD. If successful, it would be the biggest reshaping in the global auto industry since the Fiat Chrysler and PSA merger in 2021 that formed Stellantis. Smaller Mitsubishi, with Nissan as its top shareholder, is also considering joining the merger. Honda CEO Toshihiro Mibe emphasized the need for greater scale to compete in developing new technologies for electric vehicles and intelligent driving. He stated that business integration would provide an edge unattainable under the current collaboration framework. "The rise of Chinese automakers and new players has changed the car industry quite a lot," Honda CEO Toshihiro Mibe told a press conference, according to Reuters. A business integration would give the companies an “edge that will not be possible under the current collaboration framework,” Mibe also said, according to CNBC. https://lnkd.in/d7BSeqUj The merger would share intelligence and resources, deliver economies of scale, and protect both brands. A holding company would be formed as the parent of both Honda and Nissan, listed on the Tokyo Stock Exchange. Honda, the larger entity, would nominate most board members. The merged group could potentially generate 30 trillion yen ($191.4 billion) in revenue and over 3 trillion yen ($19.69 billion) in operating profit. Honda reported 1.382 trillion yen ($9.07 billion) in operating profit for the fiscal year ending March 2024, while Nissan reported 568.7 billion yen ($3.73 billion). https://bit.ly/41NpuHn Combined, the companies would have a value of nearly $54 billion, with Honda contributing the larger $43 billion share. Discussions are expected to conclude by June 2025. Picture credit: insightpakistan #HondaNissanmerger #Honda #Nissan #Stellantis #Mitsubishi #Fiat #Chrysler #PSA #electriccars #EV #climatecrisis #Tesla ##BYD #XPeng #China #Japan #VW #Toyota

Congress passed a funding patch early Saturday averting a government shutdown following Trump, Musk disruptions In its last action of the year, Congress passed a funding patch early Saturday, including over $110 billion in disaster aid, averting a government shutdown and closing out the 118th Congress, according to Politico. https://lnkd.in/dWxQNGzB The bill, which passed the House on Friday evening, capped off a tumultuous week on Capitol Hill. Speaker Mike Johnson managed last-minute demands from President-elect Donald Trump and Elon Musk, alongside the ensuing furor of congressional Democrats whose votes were needed to pass funding bills amid conservative opposition. While Johnson abandoned his initial bipartisan deal with Democrats at Trump’s and Musk’s urging, he failed to meet Trump’s demand for lifting the debt limit. Some Republicans voted against the package because it did not cut spending. Johnson said the party will have more influence next year when they control both chambers of Congress and Trump is in the White House. "This was a necessary step to bridge the gap, to put us into that moment where we can put our fingerprints on the final decisions on spending," Johnson told reporters after the House vote. He said Trump supported the package, according to Reuters. https://bit.ly/49NqQno The result is a spending patch that retains some initial bipartisan elements, including funding the government at current levels through March 14, over $110 billion in disaster aid, and a one-year farm bill extension. However, more than 1,000 pages of policy were removed from the bill at Trump’s and Musk’s behest, including restrictions on U.S. investments in China, stricter rules on deceptive advertising of event tickets, and new rules for pharmacy benefit managers aimed at lowering prescription drug prices. Congressional Democrats, despite their frustration with the influence of Trump and Musk, largely voted in favor of the package. “It feels to me there were a lot of things that were not great for billionaires and corporations that dropped out of this bill. And I don’t think that’s a coincidence,” said Sen. Chris Murphy (D-Conn.) before voting for the bill, according to Politico. After days of chaos in the House brought Congress to the brink of a shutdown, the Senate acted swiftly once the bill reached the upper chamber. https://bit.ly/4fJxa0V “The president put his stamp on it, so let’s get ‘er done,” said Sen. Tommy Tuberville (R-Ala.), according to Poltico. Picture credit: jewishinsider #uscongressfunding #usshutdown #DonaldTrump #usspending #ElonMusk

Elon Musk has sparked outrage in Germany after appearing to endorse the far-right AfD Elon Musk has sparked outrage in Berlin after appearing to endorse the far-right, anti-immigrant Alternative für Deutschland (AfD), according yo The Guardian. https://bit.ly/4gJpEnx Musk, appointed by Donald Trump to co-lead a commission aimed at reducing the size of the US federal government, posted on his social media platform X: “Only the AfD can save Germany.” https://lnkd.in/eXm8nKc9 In his post, Musk shared a video by German right-wing influencer Naomi Seibt, who criticized Friedrich Merz, the leader of the conservative Christian Democrats and a potential German chancellor, while praising Javier Milei, the libertarian president of Argentina. German Health Minister Karl Lauterbach called Musk’s intervention in the German political debate weeks before the snap election “undignified and highly problematic,” according to The Guardian. Germany, Europe’s largest economy, is set to go to the polls on February 23 after the collapse of Olaf Scholz’s center-left coalition last month. https://lnkd.in/dnUjjwCB The AfD is currently running in second place in opinion polls. Elements of the party have been classified as right-wing extremists by Germany’s domestic intelligence services, and mainstream parties have vowed not to work with the AfD at the national level. The German government issued a brief response to Musk’s post, noting that it had registered it but declined to comment further. At a press conference in Berlin, Scholz indirectly addressed the post, saying: “We have freedom of speech here. That also applies to multimillionaires. Freedom of speech also means that you’re able to say things that aren’t right and do not contain good political advice,” according to The Guardian. In a post on X, Sen. Chris Murphy (D-Conn.) called Musk an “out of touch billionaire running the incoming Trump Administration” who “enthusiastically supports the neo-Nazi party in Germany,” according to CNBC. https://lnkd.in/dRVmQY8A Picture credit: bfmtv #ElonMusk #AfD #Germany #OlafScholz

Donald Trump: I told the European Union that they must make up their tremendous deficit with the United States by the large-scale purchase of our oil and gas. Otherwise.. U.S. President-elect Donald Trump announced on Friday that he told the EU to reduce its trade gap with the U.S. through oil and gas purchases or face tariffs. “I told the European Union that they must make up their tremendous deficit with the United States by the large-scale purchase of our oil and gas. Otherwise, it is TARIFFS all the way,” Trump posted on his Truth Social platform shortly after 1 a.m. ET. https://lnkd.in/dHqDWxv3 According to U.S. figures, the country’s goods and services trade deficit with the European Union was $131.3 billion in 2022. https://bit.ly/49KfEYV A senior EU diplomat, who wished to remain anonymous due to the sensitivity of the topic, told CNBC’s Silvia Amaro that they were not surprised by Trump’s comment and that energy was a “good option” for buying more U.S. goods, according to CNBC. https://bit.ly/4gI5Vof Another EU official, also anonymous, mentioned that German Chancellor Olaf Scholz spoke with Trump the previous night. The comment followed the EU heads of state’s final meeting of the year on Thursday, where Europe-U.S. relations were discussed. “The message is clear: the European Union is committed to continue working with the United States, pragmatically, to strengthen transatlantic ties,” European Council President António Costa said after the meeting. In his first interview since taking office, Dan Jørgensen, the EU’s new energy chief, expressed concerns about the EU's increasing purchases of Russian liquified natural gas and the ongoing dependency of five EU countries on Russian nuclear fuel. https://bit.ly/4fhs8sb He stressed that LNG imports will be a key topic in discussions with the incoming U.S. administration. European Commission President Ursula von der Leyen has also suggested that the EU could buy more American fuel to avoid a potential trade conflict with Donald Trump. Picture credit: Yahoo #DonaldTrump #tariff #EU #oilandgas #DanJørgensen

A spending bill backed by Donald Trump failed in the U.S. House of Representatives, raising government shutdown risk A spending bill backed by Donald Trump failed in the U.S. House of Representatives on Thursday as dozens of Republicans defied the president-elect, leaving Congress with no clear plan to avert a looming government shutdown that could disrupt Christmas travel, according to Reuters. https://bit.ly/3BQHFkO The vote exposed fault lines within Trump's Republican Party that could resurface next year when they control the White House and both chambers of Congress. Trump had pressured lawmakers to resolve issues before he takes office on Jan. 20, but members of the party's right flank refused to support a package that would increase spending and add trillions more to the federal government's $36 trillion debt. The package failed by a vote of 174-235 just hours after it was hastily assembled by Republican leaders seeking to comply with Trump's demands. A total of 38 Republicans voted against the bill, joined by every Democrat except two who voted in favor and one who voted present, according to CNBC. https://bit.ly/3Dpyt7v "I am absolutely sickened by a party that campaigns on fiscal responsibility and has the temerity to go to the American people and say you think this is fiscally responsible," said Republican Representative Chip Roy, one of 38 Republicans who voted against the bill, according to Reuters. Without a deal to fund the federal government, a partial shutdown is set to begin late Friday night. It was unclear late Thursday what House Speaker Mike Johnson, R-La., would do next, given the substantial opposition from within his own party. A prior bipartisan deal was scuttled after Trump and Elon Musk came out against it on Wednesday. https://bit.ly/49KUeL2 Government funding is due to expire at midnight on Friday. If lawmakers fail to extend that deadline, the U.S. government will begin a partial shutdown, interrupting funding for everything from border enforcement to national parks and cutting off paychecks for more than 2 million federal workers. The U.S. Transportation Security Administration warned that travelers during the busy holiday season could face long lines at airports. European markets open lower after US spending plan fails, according to CNBC. https://bit.ly/3VNBgOe Picture credit: Yahoo #usspendingdeal #DonaldTrump #USHouseofRepresentatives #christmas #christmastravel #shutdown

The world's economic reckoning with Donald Trump began this week The world's economic reckoning with Donald Trump began in earnest this week. The U.S. Federal Reserve flagged fewer rate cuts, there was a resignation in Canada over tariff budgeting, and there was heightened focus on cryptocurrencies. bit.ly/4gG0rdI At a press conference following the Fed's latest two-day policy meeting, where policymakers cut rates as expected but signaled a less certain path for monetary policy, Powell stated, "We're not allowed to own bitcoin," according to Reuters. https://bit.ly/49HSrGP Regarding the legal issues around holding bitcoin, Powell added, "that's the kind of thing for Congress to consider, but we are not looking for a law change at the Fed." The Fed's decision to cut rates on Wednesday came amid a busy year-end run of central bank meetings from Ottawa and Frankfurt to Tokyo and London, all highlighting heightened uncertainty ahead of Donald Trump entering the White House in the new year. Fed officials not only scaled back projections for rate cuts amid stubborn inflation, but Chair Jerome Powell also mentioned that some in the bank were trying to judge how Trump's planned tariffs, lower taxes, and immigration curbs might affect policy, according to Reuters. https://bit.ly/3ZKD7EF The result was that U.S. central bankers projected higher growth for next year than previously estimated, but also significantly higher inflation. This led Powell to repeatedly urge "caution" regarding further rate cuts, triggering a slide in stock prices and a recalibration of market estimates for additional easing. Only a single Fed rate cut is now anticipated for 2025. The stock sell-off on Wall Street was “healthy,” as the Fed’s cautionary projection on future rate cuts gives investors a “reality check,” according to Jeremy Siegel, professor emeritus of finance at University of Pennsylvania, according to CNBC. https://bit.ly/4gmJAwL "Some people did take a very preliminary step and start to incorporate highly conditional estimates of economic effects of policies into their forecasts at this meeting," Powell said when asked if Trump's policies factored into officials' thinking, according to Reuters. "Some people said they didn't do so, and some people didn't say whether they did or not. So we have people making a bunch of different approaches to that but some did identify policy uncertainty as one of the reasons for their writing down more uncertainty around inflation." In Asia, the Bank of Japan on Thursday maintained ultra-low interest rates as the threat of Trump's policies loomed over the export-reliant economy. https://bit.ly/4iGyG6x Though Trump may have been a peripheral concern for Fed officials, he was a central focus in Ottawa, where Canadian Finance Minister Chrystia Freeland resigned after clashing with Prime Minister Justin Trudeau on how to handle possible U.S. tariffs under the next U.S. administration. https://bit.ly/3BNFpe9

The Federal Reserve lowered its key interest rate by a quarter percentage point; Powell: "We are now significantly closer to neutral with interest rates." The Federal Reserve lowered its key interest rate by a quarter percentage point on Wednesday, marking the third consecutive reduction. This move, anticipated by markets, came with a cautionary tone about further reductions in the coming years, according to CNBC. https://bit.ly/3ZXxWmb The Federal Open Market Committee (FOMC) cut its overnight borrowing rate to a target range of 4.25%-4.5%, returning it to the level it was in December 2022. While the decision itself was expected, the main focus was on the Fed's future intentions amid steady inflation and solid economic growth, conditions typically not associated with policy easing. According to Reuters, Fed policymakers project is: - A 4.3% unemployment rate at the end of 2025, slightly down from 4.4% projected in September. - Personal Consumption Expenditures inflation at 2.5% by end-2025, up from 2.1% in September, with core inflation also at 2.5%, compared to 2.2%. - GDP growth of 2.1% in 2025, up from 2.0% in September, with the longer-run growth unchanged at 1.8%. https://bit.ly/4fxMI7S During his Q&A comments, Powell mentioned that some policymakers had begun to incorporate highly conditional estimates of economic effects of policies into their forecasts at this meeting. Powell's remarks after the FOMC meeting included: - "Inflation much closer to our 2% goal." - "Recent indicators suggest that economic activity has continued to expand at a solid pace." - "The economy is strong overall and has made significant progress toward our goals over the past two years." - "We're committed to maintaining our economy's strength by supporting maximum employment and returning inflation to our 2% goal." - "In our summary of economic projections, committee participants generally expect GDP growth to remain solid, with a median projection of about 2% over the next few years. In the labor market, conditions remain solid." - "Overall, a broad set of indicators suggests that conditions in the labor market are now less tight than in 2019." During the Q&A following the FOMC meeting, Powell also said: - "I would say today was a closer call. But we decided it was the right call because we thought it was the best decision to foster achievement of both of our goals - maximum employment and price stability." - "Downside risks to the labor market do appear to have diminished, but the labor market is now looser than pre-pandemic, and it's clearly still cooling further." - "We are now significantly closer to neutral with interest rates." - "Overall, a broad set of indicators suggests that conditions in the labor market are now less tight than in 2019." Picture credit: finacialnations #fed #jeromepowell #ratecuts #usratecutes #FederalReserve #FOMC

The Federal Reserve is expected to lower borrowing costs by 25 basis points on Wednesday The Federal Reserve is expected to lower borrowing costs on Wednesday, a move some are calling a "hawkish cut," to be delivered alongside updated interest rate outlooks and economic forecasts for the early Trump administration. The anticipated quarter-percentage-point reduction would bring the central bank's benchmark rate to the 4.25%-4.50% range, a full percentage point lower than in September when the Fed began easing tight monetary policies to counter the inflation surge that began in 2021, according to Reuters. https://bit.ly/49LR4He The future path of rate cuts remains uncertain, with inflation still above the 2% target, faster-than-expected economic growth, and the potential impact of President-elect Donald Trump's tariff, tax, and immigration policies once he takes office in January. https://bit.ly/3Zak6em In September, Fed officials projected reducing the benchmark rate by another full percentage point to around 3.4% by the end of 2025. https://bit.ly/3zpQUHw However, with inflation above the 2% target and Trump's election victory, investors now expect only a half-percentage-point cut next year. They will closely watch the projections and Fed Chair Jerome Powell's remarks in the post-meeting press conference for signs of increased caution about further reductions, according to Reuters. Economists with TD Securities noted that while the Fed will likely forecast additional easing for 2025, guidance on the pace of rate cuts will probably be more cautious. In November, the Federal Reserve lowered interest rates by a quarter of a percentage point as policymakers began to assess the potentially complex economic landscape that President-elect Donald Trump will encounter when he takes office next year. https://bit.ly/4epc4nH At that time, Fed Chair Jerome Powell stated that the presidential election results, which paved the way for a U.S. chief executive who has pledged widespread deportation of immigrants, broad-based tariffs, and tax cuts, would have no "near-term" impact on U.S. monetary policy. Recent data, including a strong retail sales report for November, have not significantly changed the Fed's view of an economy growing at a "solid pace" with low unemployment and inflation that, while falling, "remains somewhat elevated." https://bit.ly/4iGTJpl Picture credit: finacialnations #fed #jeromepowell #ratecuts #usratecutes #FederalReserve

Donald Trump aims to transform Germany’s auto giants into American firms President-elect Donald Trump's pledge to impose a blanket tariff on all goods entering the U.S. could severely impact European carmakers, especially Germany's struggling automotive sector, according to CNBC. https://bit.ly/3VFqNnW In late September, Trump expressed his desire to turn Germany’s auto giants into American companies, urging them to build their plants in the U.S. He called tariffs "one of the most beautiful words" and "music to my ear." according to CNBC. https://bit.ly/3ZDoZwR Trump plans to introduce new tariffs on China, Canada, and Mexico, including a 10% tariff on all Chinese products and a 25% tariff on goods from Canada and Mexico. https://bit.ly/3Zak6em Although EU wasn't mentioned in his initial announcement, EU policymakers are likely concerned that the auto sector will soon be targeted. For Germany, the threat of U.S. tariffs comes at a challenging time, with major manufacturers like Volkswagen, Mercedes-Benz, and BMW issuing profit warnings due to economic weakness and sluggish demand in China. lnkd.in/da3NXjzw Picture credit: socialdiary #DonaldTrump #Germany #VW #Germancarmakers #BMW

Central European energy firms seek to extend a transit deal carrying Russian gas via Ukraine Central European energy firms have written to EU chief Ursula von der Leyen to extend a transit deal carrying Russian gas via Ukraine, emphasizing the risk of supply complications and higher gas prices for European consumers if the deal ends, acording to Politico. https://bit.ly/4gDk1au The letter, sent to the European Commission president, was signed by gas supply firms, network operators, and industrial consumers from Hungary, Slovakia, Austria, and Italy. https://bit.ly/3BK7LG9 (written in Slovak) Slovakia and Hungary, led by Robert Fico and Viktor Orbán, have been pushing to renew the 2019 deal between Ukraine and Rusland, arguing that its end threatens their supply security and could increase energy prices in winter. SPP, Slovakia's state-owned energy supplier, warned that replacing lost supplies could cost over 220 million euros. The letter was also signed by the Federation of Austrian Industries and Gas Intensive Società Consortile from Italy, according to Politico. Slovakia’s Economy Minister Denisa Sakova aims to secure a deal by year’s end, but this depends on partner agreements. Following a call with his counterpart Denys Shmyhal, Fico said officials were in "very intense" talks. Shmyhal indicated discussions on extending the pact would continue, provided flows from Russia stopped and the Commission addressed the issue with Kyiv. Hungarian Energy Minister Csaba Lantos expressed that EU Commission support would be helpful. However, the EU executive has said EU will not face serious consequences if gas flows stop and has ruled out helping negotiate an extension. Experts remain skeptical about significant impacts on Hungary and Slovakia if the deal ends, according to Politico. An early draft of the letter included Czech, German, and Ukrainian energy companies, but they were not in the final version. Picture credit: ussanews #Ukraine #gasline #Hungary #Italy #Slovakia #Austria #UrsulavonderLeyen #fossilfuels