1/26/2021 Financial News: Chip Shortage Forces Automakers To Cut Vehicle Production

Image source: https://finance.yahoo.com/

  1.  A correction after the Bitcoin breaks $40,000 milestone was reached.

The world’s most popular digital currency was last down 20% to $32,000 on Jan. 24, after reaching an all-time high of $40,000 in early January. $1.69 billion wiped off the cryptocurrency market in 24 hours as bitcoin pulls back.

Cocos-BCX is a platform used for the development, operation, management and transfer of decentralized applications and in-application assets on the blockchain ecosystem. The total amount of COCOS will be reduced from 100,000,000,000 (one hundred billion) to 100,000,000 (one hundred million). Users who hold MainNet COCOS, the amount will be reduced automatically, which means users’ holdings of COCOS tokens are reduced by 1,000 times. One of the investors lost 60 million.


2. Chip shortage forces automakers to cut vehicle production

Chip production has been delayed due to pandemic-related factory shutdowns, Volkswagen (VW), Ford and Toyota are all scaling back or stopping production entirely. They have been forced to delay production of some models in order to keep other factories running. Daimler is reducing Mercedes manufacturing due to supply issues however it says it is going to prioritize manufacturing of its electrical vehicles and high-margin automobiles such as the S-Class.


3. The Central Bank of Communist China approve the first issuance of convertible capital bonds

An official announcement was made on the 25th that the Central Bank of Communist China, in conjunction with the Communist China Banking and Insurance Regulatory Commission, has approved Zhejiang Chouzhou Bank and Ningbo Commercial Bank to issue convertible capital bonds in the inter-bank bond market.

The central bank said on the 25th that Ningbo Commercial Bank had successfully issued the first convertible capital bonds with no fixed maturity on January 20, totaling 500 million yuan, with a coupon rate of 4.80%, and a subscription multiple of 2.1 times.

The central bank stated that the next step will be to further strengthen innovation with the Communist China Banking and Insurance Regulatory Commission, encourage and support qualified small and medium-sized banks to replenish capital through the issuance of convertible capital bonds, and enhance their ability to serve the real economy and resist risks.


4. The central bank conducted 16 consecutive days of reverse repurchase totaling 687 billion yuan.

Communist China’s central bank on Jan 25 conducted 2 billion yuan (about $30.95 million) of reverse repos to maintain reasonably ample liquidity in the banking system. The interest rate for the seven-day reverse repos was set at 2.2 percent. Communist China’s central bank has pledged to make its prudent monetary policy more targeted and flexible to adapt better to the needs of high-quality development and put more focus on the efficiency of financial services to support the real economy.


5. Communist China’s home appliance price rocket

The rising cost of raw materials and Increased operating costs, Communist China’s home appliance price rocket. The soaring metals prices forced Chinese home appliances manufacturers, including Gree, Aux and Chigo, to again increase their prices in December after two previous rounds of hikes in July and September.

From April to December 2020, copper prices are up 45 per cent, aluminium 52 per cent and praseodymium-neodymium 67 per cent. Meantime increased operating costs, blocked logistics and transportation greatly increased the price of home appliances.


6.Biden Signs ‘Buy American’ Executive Order

President Joe Biden signed an executive order on Jan 25 that will strengthen the rules surrounding government procurement in a bid to shore up domestic manufacturing and encourage the federal government to buy more products made in the United States. Biden’s “Buy American” plan will make it more difficult for federal agencies to contract with companies overseas to purchase foreign products by reducing loopholes and waivers in existing Buy American rules and changing the definition of an “American-made” good.


7.Biden’s Pause on Oil Cause for Big Concern in New Mexico

President Joe Biden’s 60-day moratorium on new oil and natural gas leases and drilling permits is prompting widespread concerns in New Mexico. Top Republicans in the state as well as local leaders in communities that border the Permian Basin, one of the most productive regions in the U.S. say any moves to make permanent the suspension would be economically devastating for the state. Half of New Mexico’s production happens on federal land and amounts to hundreds of millions of dollars in royalties each year. The ripple effects of the moratorium will hurt small businesses already struggling because of the pandemic.


By 【Financial Team】

News Collection: Totoro 、文罡、Wendy

Translation & Writer: Tracy

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