Economy
Chip Crisis Reaches Industry Giants and Threatens 2022
The automotive sector is forced to curtail production. Toyota alone has cut the number of vehicles planned for September by 40%. Harsh amplification in the semiconductor industry is not enough to meet demand.
They have no more than 5-7 nanometers, but they are necessary for the brains of all kinds of systems that power devices, from simple household appliances to smartphones, from cars to robots. And since there are only half a dozen manufacturers in the world, even giants, especially China, unexpected events of recent times, from pandemics to natural disasters and trade blockades, have driven the production of chips. And its lack is creating problems for the global industry, especially in the automotive sector, where semiconductors are becoming an increasingly prominent feature of onboard safety and entertainment equipment.
The outlook is not good if it is expected that even the measures taken to overcome the chip crisis, including Bosch’s new plant in Dresden, dedicated exclusively to its mass production and in quantities double the current figures, will not provide relief. a problem the consequences of which are already affecting the world’s giants. Toyota, the world’s largest carmaker that has bypassed the crisis so far and achieved a record profit of 7 billion euros in June (+ 465% from a year earlier) this week, announced that it will have to cut global sales. production up 40% in September. A spokesman for the manufacturer, Kazunari Kumakura, explained to the FT that “the sudden and radical decision to drastically cut production” is due to “the increasing difficulty of securing the required number of components.” That’s 360,000 fewer cars from the planned 900,000 that will leave the auto giant’s factories next month after a new coronavirus outbreak in Malaysia and Vietnam has led to a cut in the production of microchips and other electronic components. News that caused a Japanese manufacturer to lose $ 14 billion on the stock exchange.
Autoeuropa and Bosch Braga also suffer
In Portugal, chip shortages are already taking their toll, even causing car production to drop by about 30% in June, ACAP reported, Associação Automóvel de Portugal, due to a lack of components, Autoeuropa has come to a standstill. Bosch Car Multimedia in Braga, which develops solutions for several car brands, also suffered from component shortages even before the summer. And if he didn’t have to close his doors, “some supply problems” forced the Portuguese plant to lay off workers because of the “worsening situation,” which forced them to stop working for a long time.
Even with China boosted electronic chip production by almost 50% in the first six months of this year, up from production recorded prior to June last year – it currently produces more than 1 billion integrated circuits a month, Beijing sold more than 30 billion microcircuits for factories around the world – the answer that is now being sought is far from what would be needed to solve the problem of the shortage of semiconductors on the market. And there are even those who expect this crisis to last until 2022, even with the strengthening of China and the help of Bosch, which has been investing one billion euros since September in a plant in Dresden to increase production. It is the German giant’s largest investment to increase chip distribution for the automotive industry, creating, as Reuters explained in June, 300mm thick silicon wafers (double the normal size) to get more chips per chip. …
The effect will continue next year.
Speaking to the press after meeting with investors, Technology Ndivia CEO said Thursday that despite the agreements reached “to ensure long-term supply to meet market expansion goals,” “we will continue to face challenges in the vast majority of countries. next year. ”Also Luca de Meo, CEO of Renault, is not very optimistic, predicting that what he sees as a“ structural problem ”will continue“ until 2022, ”increasing tensions even if production capacity improves. Reuters Harald Wilhelm, Daimler’s chief financial officer, joins the chorus to say he sees the semiconductor crisis continue to take its toll next year, continuing to impact car sales.
Problems that have become widespread among the largest brands. Earlier this week, Volvo, owned by China’s Geely, joined a number of struggling manufacturers by announcing production cuts at its Swedish plants. Already on Thursday, Elon Musk pointed the finger at semiconductor suppliers to justify the accumulated production delays at Tesla. “As has been publicly disclosed, we are operating under extreme constraints in the supply chain of some standard ICs for the automotive industry. The most problematic ones today are the (Japanese) Renesas and Bosch, ”the entrepreneur wrote on Twitter.
The good news is for chipmakers who have seen skyrocketing profits. As demand rises and market deficits increase: even as automakers are cutting global production, chip companies improved their results by an average of more than 20% in the first half of this year, according to specialized sites.
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Economy
What factors impact financial markets?
The global financial markets are now hugely complex, with traders and analysts around the world looking closely for signs of movement. What are some of the most important factors to be aware of that impact the financial markets?
Geopolitical events
With news breaking from different countries throughout the day, many different stories could affect the markets on any given day. For instance, economic indicators such as the European Central Bank’s inflation rates and gross domestic product numbers released by each country can determine which direction the markets take. Stocks, currencies and other financial instruments can all vary depending on these areas.
Major events such as war breaking out, natural disasters and elections also have an effect. When we look at the commodities market, climate change is an issue to bear in mind, with unusual weather sometimes causing scarcity or abundance of a certain product.
An interesting aspect of the modern financial world is the way that the different markets are linked. This means that any important event or news story that affects one area could easily affect another, even if the link isn’t obvious at first sight. We can also see how local shocks and events can quickly have an effect at a global level.
The financial crisis of 2008 is a good example, as it started with a serious downturn in the US housing market. Although this appeared to be a localized issue at first, it soon revealed some major issues with the global banking setup that caused problems around the planet affecting millions of people and diverse industries.
Speculation and investment trends
The previous factors all point toward the markets changing, and there’s no shortage of traders around the world waiting to see what happens next and how they can benefit. This means that we need to take into account other issues such as speculation and investment trends in the markets.
Armed with a variety of tools, including candlestick charts, traders try to identify trends such as support and resistance levels. They use the information they glean from the charts to make their moves, which can influence the general market if enough people make the same moves or if the amounts involved are significant.
Once an investment trend begins, it can have a knock-on effect that would have been impossible to predict at the outset. The example of Bitcoin and other cryptocurrencies shows how something that starts small can grow impressively. Cryptocurrencies have now gained enough mainstream appeal to influence and disrupt many industries, from healthcare to gaming and banking.
It’s important to understand how the leaders of a company operate and how they have faced challenges in the past. If we look at banking and the Bank of New York Mellon in particular, we can see that its history can be traced back to 1784, so it has overcome all the major events that have occurred since then. With some of the biggest names in the business world making up its key institutional investors, this is a company that we would expect to react effectively to changing markets.
Regulatory changes and company results
Just about every industry represented in the financial markets has laws and regulations that govern it. This means that the fear of harsher new laws is an almost constant threat. Meanwhile, the hope that beneficial changes to the regulations help businesses prosper is the other side of this matter that investors keep a close eye on.
Let’s not forget the role played by the profit and loss results produced by major companies. It’s clear that these results have an almost immediate effect on their stock prices. However, we should also bear in mind that this effect can reach other areas of the economy. A surprising set of results for a large business can produce shock waves that travel around the market.
What impact do they cause?
From the wide variety of examples that we’ve looked at here, it’s clear that the impact isn’t going to be the same in every case. While one set of circumstances might snowball and cause a huge impact, another might cause a limited impact before the news disappears as other events overtake it.
Having said that, one of the key issues that they cause is a higher degree of market volatility. We can see how this works by looking at an area such as the COVID-19 pandemic in 2020. The markets became a lot more volatile as the different aspects of the pandemic became clear. Streaming companies, healthcare companies and video conferencing technology firms made huge profits, while airlines and hotels were among those to lose out massively.
Working out the overall impact of a particular situation is almost impossible to do now. With so many traders looking over the latest news stories and numbers with advanced tools, the original impact can quickly grow or simply disappear. Therefore, the key for investors is to understand emerging trends and react to them before it’s too late.
These details reveal how complex the global financial market is now. It’s a fascinating world, and with more information at our fingertips than ever before, it’s something that anyone can start to research and understand in their own way.
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Economy
Everything has been delivered. 10 Bugatti Centodieci are already in the hands of the owners
OAll Bugatti Centodieci have been delivered, the Molsheim-based brand said on Monday. Cristiano Ronaldo received the number 07 in October this year. and Bugatti has now revealed that the latest unit – #10 – is already in the possession of its owner.
“The Centodieci combines all the values of the Bugatti brand in an extraordinary package: rarity, innovation, heritage, craftsmanship and unrivaled performance. The production batch of 10 units was so in demand by our customers that it was sold before the Centodieci. was even officially presented,” said Christophe Piochon, president of Bugatti.
This latest example is finished in Quartz White with carbon fiber trim on the bottom and matte grilles. The brake calipers are painted in Light Blue Sport, as is the logo on the rear that refers to the EB110, the iconic Bugatti model that inspired this Centodieci. Inside, the predominant color is also blue, as you can see in the images above.
This block is powered by the same block as the other nine instances. The 8.0-liter W16 with four turbines is capable of developing 1600 hp. In terms of performance, this allows the Centodieci to hit 100 km/h in just 2.4 seconds and reach a top speed of 380 km/h.
Recall that each unit costs the owners eight million euros before taxes.
Read also: We already know when the Bugatti Centodieci fell into the hands of Ronaldo.
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Economy
The first Dacia hybrid. “The cheapest hybrid family on the market”
BUT Dacia revealed this Monday that the hybrid engine has been available since March on the Jogger, the Romanian brand’s model known to be available with a seven-seat variant.
The Jogger Hybrid 140, Dacia’s first hybrid, will hit dealerships in March, but customers can expect and order it as early as January.
The price has been revealed by Dacia and since it’s only available in the seven-seater SL Extreme, it starts at €28,800. The brand claims it is “the most affordable hybrid family car on the market.”
Available in six existing colors to celebrate the launch of this hybrid, there will be a slate gray version, as you can see in the images above.
Equipped with a 1.6 liter four-cylinder petrol engine with 90 hp, the Jogger is also powered by two electric motors (a 50 hp engine and a high-voltage starter-generator). The total power is 140 horsepower. The electric transmission is automatic, four-speed, connected to an internal combustion engine, and two speeds are connected to an electric motor. This combined technology was possible, according to Dacia, only due to the lack of clutch.
Combined with the energy recovery levels of the 1.2kWh (230V) battery pack and the efficiency of the automatic transmission, regenerative braking delivers all-electric traction on 80% of urban journeys and saves up to 40% of fuel compared to a combustion engine vehicle.
Read also: Dual-fuel Dacia Jogger Eco-G. We tried 5 seater and LPG…
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