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In today’s markets highlights, we look at India’s incentives to phone manufactures, Tesla’s new production records, Trump’s move to end relief talks and GE’s possible SEC Civil action suit.
US Markets Trade Lower as Trump ends relief talks
Wall Street extended losses on Tuesday following the news that United States President Donald Trump has called off the negotiations with the Democrats about the next round of stimulus until after the presidential elections.
The prices of precious metals also posted losses following Trump’s order on new economic relief.
India Approves Incentives for Apple, Samsung for $143b Local Manufacturing Plan.
India approved incentives for Apple, Samsung and 16 other firms to manufacture smartphones and their components. India’s Ministry of Electronics and Information Technology believes the companies will produce smartphones and parts worth over $143billlion in the next five years. In return, the government will provide incentives of 4 to 6% on the incremental sale of goods in the segment for five years from the financial year 2019/2020.
The Production Linked Incentive Scheme (PLI) will boost India’s position as a manufacturing destination, a push towards Narendra Modi’s Self Reliant India.
Tesla Sets Record in Q3 Vehicle Production
Tesla delivered 139,300 vehicles in the quarter ending September 30th, breaking its record for 112,000 deliveries. The delivery figures which also include 124,100 for the Model 3/Y and 15,200 for the Model S/X surpass vehicle deliveries for the previous quarter which stood at 90,650 vehicles.
YoY deliveries grew by 43.6%. Tesla is aiming to deliver 500,000 vehicles for the year 2020.
The company reportedly slashed prices for the Model 3 EV manufactured in Shanghai factory. Model 3 sedans retail at $36,800 compared to a previous $39,990. Long-range model 3 vehicles now sell at $45,640 from $50,670. Reuters attributes the price cut to a switch from Cobalt to cheaper Lithium iron phosphate batteries.
Additionally, Tesla has reportedly dissolved its global public relations department, Elektrek, am electric vehicle industry news website reported on Tuesday, citing sources from “the highest level at Tesla.” The company will still maintain a few communications officers in Europe and Asia, but the PR team in the United States is no longer a part of the company.
GE Shares Fall as the after news of possible SEC Civil Action Suit
Lastly, on global markets, shares of General Electric fell by 3.74% from gains of 2% after news of a possible civil action suit. On Tuesday, the Securities and Exchange Commission (SEC) revealed plans of an enforcement action over GE’s handling of its insurance portfolio, after expanding a previous investigation on GE insurance losses of $6.2 billion. The Wells Notice, however, is not a formal allegation of wrongdoing, but rather an opportunity to respond before a final SEC decision.
Global trade volume to drop 9.2% in 2020
The World Trade Organization (WTO) on Tuesday revised its forecast for the decline in the volume of the global trade to 9.2% year-on-year in 2020, instead of 12.9% a decrease foreseen in its April forecast.
The organization has also revised next years’s rebound lower, with the trade volume now expected to recover 7.2%, leaving it well below the pre-pandemic levels. Global gross domestic product is projected to fall 4.8% in 2020 before rising 4.9% in 2021.
The WTO further warned that the downside risks remain prevalent, with some limited upside potential coming from a possible COVID-19 vaccine or treatment, albeit their impact would be less immediate.
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