Tesla is facing challenges in China and Europe
The sales dropped 21% compared to last year. In China, Tesla's market share fell from 4% to 2.6%, despite overall car sales in the country increasing by 28%. Tesla struggles to compete with Chinese manufacturers who offer similarly priced but superior options. A potential solution for Tesla could be the introduction of robotaxis in China, which could then expand globally. Additionally, the imposition of a 100% tariff on Chinese electric cars in the U.S. effectively secures Tesla's home market.
In Europe, Tesla's factory in Germany is under pressure from eco-activists, with over 1200 participants demanding a halt to the deforestation near a city required for the Gigafactory's expansion. They, ostensibly guided by environmental concerns, are suspected to be influenced by the German auto lobby. This lobby initially delayed the factory's production start by nearly a year through similar actions and is now attempting to obstruct Tesla's further expansion in the EU, suggesting that Elon Musk may have chosen the wrong country for his factory.
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The sales dropped 21% compared to last year. In China, Tesla's market share fell from 4% to 2.6%, despite overall car sales in the country increasing by 28%. Tesla struggles to compete with Chinese manufacturers who offer similarly priced but superior options. A potential solution for Tesla could be the introduction of robotaxis in China, which could then expand globally. Additionally, the imposition of a 100% tariff on Chinese electric cars in the U.S. effectively secures Tesla's home market.
In Europe, Tesla's factory in Germany is under pressure from eco-activists, with over 1200 participants demanding a halt to the deforestation near a city required for the Gigafactory's expansion. They, ostensibly guided by environmental concerns, are suspected to be influenced by the German auto lobby. This lobby initially delayed the factory's production start by nearly a year through similar actions and is now attempting to obstruct Tesla's further expansion in the EU, suggesting that Elon Musk may have chosen the wrong country for his factory.
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Unexpected cost of sanctions
Italy has spent around €32 million over the last two years on the upkeep of yachts owned by Russian oligarchs, which are moored in Italian ports due to European authorities' sanctions. These yachts were intended to be sold, but legal complications have delayed their disposal, leaving the Italian Ministry of Finance to cover ongoing maintenance and docking fees.
Each yacht incurs about €10,000 per month for utilities like electricity and water, and docking fees range from €10,000 to €12,000 per month. Additionally, annual engine maintenance can exceed €50,000 per yacht.
Amidst these expenditures, discussions in Rome have increasingly focused on confiscation, but legal grounds for such actions are still lacking. Italy is not alone in facing high costs for maintaining seized Russian assets; the USA reportedly spends $7 million annually to maintain "Kerimov's yacht", with efforts to auction it remaining fruitless so far.
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Italy has spent around €32 million over the last two years on the upkeep of yachts owned by Russian oligarchs, which are moored in Italian ports due to European authorities' sanctions. These yachts were intended to be sold, but legal complications have delayed their disposal, leaving the Italian Ministry of Finance to cover ongoing maintenance and docking fees.
Each yacht incurs about €10,000 per month for utilities like electricity and water, and docking fees range from €10,000 to €12,000 per month. Additionally, annual engine maintenance can exceed €50,000 per yacht.
Amidst these expenditures, discussions in Rome have increasingly focused on confiscation, but legal grounds for such actions are still lacking. Italy is not alone in facing high costs for maintaining seized Russian assets; the USA reportedly spends $7 million annually to maintain "Kerimov's yacht", with efforts to auction it remaining fruitless so far.
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Apple ❤️ GPT
Apple Inc. has entered into an agreement with the startup OpenAI to integrate artificial intelligence technologies into iPhones, according to a Bloomberg report citing sources. This partnership will enable the use of ChatGPT in the upcoming iOS 18.
Additionally, Apple has been in discussions with Google regarding licenses for Alphabet Inc.’s chat-bot, Gemini. Although these talks have not yet resulted in an agreement, they are reportedly ongoing.
The agreement with OpenAI will allow Apple to add the chat-bot as a new feature in its AI deployment program. Apple plans to announce a range of AI features next month during its annual Worldwide Developers Conference, Bloomberg notes.
Last chance for Apple to introduce something exclusive.
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Apple Inc. has entered into an agreement with the startup OpenAI to integrate artificial intelligence technologies into iPhones, according to a Bloomberg report citing sources. This partnership will enable the use of ChatGPT in the upcoming iOS 18.
Additionally, Apple has been in discussions with Google regarding licenses for Alphabet Inc.’s chat-bot, Gemini. Although these talks have not yet resulted in an agreement, they are reportedly ongoing.
The agreement with OpenAI will allow Apple to add the chat-bot as a new feature in its AI deployment program. Apple plans to announce a range of AI features next month during its annual Worldwide Developers Conference, Bloomberg notes.
Last chance for Apple to introduce something exclusive.
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Sanctions hit the most sacred thing
In 2023, Russian vodka exports plummeted by more than half, totaling just $59.7 million for the year. Kazakhstan was the top importer, purchasing $27.9 million worth of vodka, which represents a 22% decrease from 2022. Israel and Armenia followed as the second and third largest importers of Russian vodka. The total value of these exports in 2022 was significantly higher at $141.7 million. The dramatic drop in exports is attributed to the weakening of the ruble and sanctions imposed by European countries.
Want to support Russia? Drink vodka!
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In 2023, Russian vodka exports plummeted by more than half, totaling just $59.7 million for the year. Kazakhstan was the top importer, purchasing $27.9 million worth of vodka, which represents a 22% decrease from 2022. Israel and Armenia followed as the second and third largest importers of Russian vodka. The total value of these exports in 2022 was significantly higher at $141.7 million. The dramatic drop in exports is attributed to the weakening of the ruble and sanctions imposed by European countries.
Want to support Russia? Drink vodka!
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Chinese car manufacturer Zeekr listed on NYSE
Zeekr, a premium automotive brand based in Hangzhou and part of China's private Geely group, raised $441 million in its U.S. IPO by selling 21 million American depository shares priced between $18 and $21. The shares closed at $28.26 and slightly rose in after-hours trading to $28.39.
The IPO comes amid new trade barriers expected to be implemented by the U.S. and Europe against environmentally friendly technology produced in China. The Biden administration is expected to raise tariffs on the import of Chinese electric vehicles from 25% to 100% on Tuesday. The European Commission is investigating imports of electric vehicles from China and is expected to increase tariffs in the coming months.
In China, the electric vehicle industry is highly competitive and continues to show robust growth, with sales up more than 30% in the first four months of the year. In early April, sales of electric vehicles and plug-in hybrids for the first time accounted for more than half of new car sales in China.
Since listing, three electric vehicle startups have experienced varying stock performances: Li Auto's shares have increased by 66%, while shares of Xpeng and Nio are trading below their IPO prices.
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Zeekr, a premium automotive brand based in Hangzhou and part of China's private Geely group, raised $441 million in its U.S. IPO by selling 21 million American depository shares priced between $18 and $21. The shares closed at $28.26 and slightly rose in after-hours trading to $28.39.
The IPO comes amid new trade barriers expected to be implemented by the U.S. and Europe against environmentally friendly technology produced in China. The Biden administration is expected to raise tariffs on the import of Chinese electric vehicles from 25% to 100% on Tuesday. The European Commission is investigating imports of electric vehicles from China and is expected to increase tariffs in the coming months.
In China, the electric vehicle industry is highly competitive and continues to show robust growth, with sales up more than 30% in the first four months of the year. In early April, sales of electric vehicles and plug-in hybrids for the first time accounted for more than half of new car sales in China.
Since listing, three electric vehicle startups have experienced varying stock performances: Li Auto's shares have increased by 66%, while shares of Xpeng and Nio are trading below their IPO prices.
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Despite expectations of stricter regulations, the U.S. State Department has not prohibited American companies from engaging in oil projects in Venezuela.
Previously, the Biden administration declared that it would cancel all relaxations granted a year ago if Nicolás Maduro did not ensure the legality of Venezuela's presidential elections. However, on the eve of last Friday, the U.S. Treasury Department extended the general license for certain operations with Venezuela's state oil company, PDVSA, until November 15.
This extension allows oil and oil service corporations such as Chevron, Halliburton, Schlumberger, Baker Hughes Holdings, and Weatherford International PLC to continue their collaboration with PDVSA to increase oil production, which will be supplied to American refineries.
Publications in various media highlight that the commercial benefits of cooperating with Venezuela have outweighed the U.S. State Department's political principles.
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The country aims to develop its vast natural gas reserves to power the country and attract billion-dollar investments.
The exploration blocks are located in 12 governorates, primarily in central and southern Iraq. For the first time, this licensing round includes an offshore exploration block in Iraqi territorial waters of the Persian Gulf.
It's important to note that Iraq holds the world's second-largest proven crude oil reserves, only behind Saudi Arabia.
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This will be the fourth time in the last 26 years. The Ministry of Finance announced that the sale will start with 30-year bonds, followed by 20-year bonds in May and 50-year bonds in June. Officials do not disclose the volume of sales, but Bloomberg sources revealed that it is about 1 trillion yuan ($138 billion). There will be 600 billion yuan of 30-year bonds, 300 billion of 20-year bonds, and 100 billion of 50-year bonds. These sales will support a 1 percentage point increase in economic growth this year.
According to a Bloomberg source, the bond issue dates are likely calculated to offset the impact of protectionist tariffs that the US threatens to impose on Chinese goods. Beijing announced plans to sell the bonds during the National People's Congress, where they disclosed an annual economic growth target of 5% for 2024. This target requires additional stimulation, and the bonds are meant to provide that.
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China bashes US for sanctions
Chinese authorities are demanding the cancellation of unilateral sanctions recently imposed by the United States on about 20 national companies from mainland China and Hong Kong for working with Russia, stated He Yadun, an official spokesperson for China's Ministry of Commerce.
According to He Yadun, the United States maintains trade contacts with Russia when it is in their interest, and at the same time, applies so-called Russia-related sanctions against Chinese enterprises. Such actions by Washington are considered in China as a policy of intimidation and economic coercion.
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Chinese authorities are demanding the cancellation of unilateral sanctions recently imposed by the United States on about 20 national companies from mainland China and Hong Kong for working with Russia, stated He Yadun, an official spokesperson for China's Ministry of Commerce.
According to He Yadun, the United States maintains trade contacts with Russia when it is in their interest, and at the same time, applies so-called Russia-related sanctions against Chinese enterprises. Such actions by Washington are considered in China as a policy of intimidation and economic coercion.
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A memecoin named after streamer Keith Gill, known as Roaring Kitty, soared in price by 10,000% after he made his first social media appearance in three years.
Gill gained fame in 2021 after posting a series of videos online, which investors interpreted as a signal to buy shares of the video game store chain GameStop (GME). As a result, in January 2021, GameStop's stock rose from $20 to $483 over two weeks and earned the nickname "meme stocks." Gill's post on X was his first since June 2021 and gathered over 8 million views in just a few hours.
The Roaring Kitty memecoin (ticker KITTY) was launched a month ago on the Solana blockchain, and like many memecoins, it is traded only on decentralized exchanges (DEXs). The daily trading volume for the token exceeded $20 million with a liquidity of $500,000.
Meanwhile, GME shares rose by more than 50% in the pre-market trading on the New York Stock Exchange.
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New Russia's Minister of defence - who is he, and why him?
The new Minister is an economist, so that's really interesting for us here...
Andrey Belousov is a Russian economist and politician with a significant background in economic policy development. He graduated from Lomonosov Moscow State University's Department of Economics in 1981 and has held several key governmental roles, including Deputy Prime Minister and Assistant to the President of Russia.
Belousov's focus was on enhancing macroeconomic stability and supporting crucial sectors like technology and manufacturing to reduce dependency on oil and gas revenues. His efforts aimed to modernize Russia's economy and increase its global competitiveness.
He is part of Putin's team and often appears very similar to the current Prime Minister Mishustin: Russian media describe him as one of the key figures preparing Russia to withstand sanctions and navigate through them. He is also labeled a technocrat, meaning he's all about efficiency and results. That actually describes like the whole current financial and economic management of Russia, which, obviously, is doing a great job.
Although he did not serve in the military, the Kremlin justified his appointment by pointing to the need for easier integration of innovations in the army and the application of growing military spending within the real economy. This explains why a non-military individual has been appointed.
It's important to note that a deputy minister of defense was recently arrested in Russia on corruption charges. Logically, this made it untenable for the previous minister, Sergei Shoigu, to remain at the helm of the Ministry.
Currently, Russian media report that two other deputies have resigned, and another high-ranking military official has been arrested.
All this indicates that the Russian army requires a "comprehensive audit": an anti-corruption check, and a review and update of the state defense order to meet current wartime needs. This is why Belousov is in place.
Some Russian military bloggers have really high hopes for him, saying that big work is ahead of a new minister. This work will take time and effort, but after it is done, the army will become even stronger and modernized.
Time will tell the outcomes, but it is clear that Putin (and by extension, Russia) is intent on applying lessons learned from the war in Ukraine. This process begins with "cleaning house" to establish order.
Moreover, wars are always about economy, and now one of Russia's best economists is at the forefront of managing one.
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The new Minister is an economist, so that's really interesting for us here...
Andrey Belousov is a Russian economist and politician with a significant background in economic policy development. He graduated from Lomonosov Moscow State University's Department of Economics in 1981 and has held several key governmental roles, including Deputy Prime Minister and Assistant to the President of Russia.
Belousov's focus was on enhancing macroeconomic stability and supporting crucial sectors like technology and manufacturing to reduce dependency on oil and gas revenues. His efforts aimed to modernize Russia's economy and increase its global competitiveness.
He is part of Putin's team and often appears very similar to the current Prime Minister Mishustin: Russian media describe him as one of the key figures preparing Russia to withstand sanctions and navigate through them. He is also labeled a technocrat, meaning he's all about efficiency and results. That actually describes like the whole current financial and economic management of Russia, which, obviously, is doing a great job.
Although he did not serve in the military, the Kremlin justified his appointment by pointing to the need for easier integration of innovations in the army and the application of growing military spending within the real economy. This explains why a non-military individual has been appointed.
It's important to note that a deputy minister of defense was recently arrested in Russia on corruption charges. Logically, this made it untenable for the previous minister, Sergei Shoigu, to remain at the helm of the Ministry.
Currently, Russian media report that two other deputies have resigned, and another high-ranking military official has been arrested.
All this indicates that the Russian army requires a "comprehensive audit": an anti-corruption check, and a review and update of the state defense order to meet current wartime needs. This is why Belousov is in place.
Some Russian military bloggers have really high hopes for him, saying that big work is ahead of a new minister. This work will take time and effort, but after it is done, the army will become even stronger and modernized.
Time will tell the outcomes, but it is clear that Putin (and by extension, Russia) is intent on applying lessons learned from the war in Ukraine. This process begins with "cleaning house" to establish order.
Moreover, wars are always about economy, and now one of Russia's best economists is at the forefront of managing one.
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US tariffs
The United States announced a comprehensive list of tariffs that will be applied to goods from China. From 2024 to 2026, the tariffs will affect goods worth $14-18 billion:
- Tariffs on semiconductors will rise from 25% to 50%.
- Tariffs on batteries for electric vehicles will increase from 7.5% to 50%.
- From 2026, tariffs on ALL batteries will also increase to 50% (now think about which modern device does not use them).
- Tariffs on solar elements made from graphite will increase from 25% to 50%.
- Tariffs on steel and aluminum products will rise from 0-7.5% to 50%.
- Tariffs on electric vehicles will increase from 25% to 100%.
Summarizing, the U.S. stated that Chinese goods are "unfairly cheap." In layman's terms, this means "we can't compete, so don’t let Chinese goods reach anyone." Of course, they forgot to ask the opinion of ordinary Americans who will have to pay for all this.
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The United States announced a comprehensive list of tariffs that will be applied to goods from China. From 2024 to 2026, the tariffs will affect goods worth $14-18 billion:
- Tariffs on semiconductors will rise from 25% to 50%.
- Tariffs on batteries for electric vehicles will increase from 7.5% to 50%.
- From 2026, tariffs on ALL batteries will also increase to 50% (now think about which modern device does not use them).
- Tariffs on solar elements made from graphite will increase from 25% to 50%.
- Tariffs on steel and aluminum products will rise from 0-7.5% to 50%.
- Tariffs on electric vehicles will increase from 25% to 100%.
Summarizing, the U.S. stated that Chinese goods are "unfairly cheap." In layman's terms, this means "we can't compete, so don’t let Chinese goods reach anyone." Of course, they forgot to ask the opinion of ordinary Americans who will have to pay for all this.
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In the United States, the number of class action lawsuits against shale fuel companies is growing as they are suspected of conspiring to limit production and maintain high oil prices.
More than 10 lawsuits have already been filed in American courts, with companies such as ExxonMobil, Occidental Petroleum, and Diamondback Energy listed as defendants.
Plaintiffs claim that during the period of rising oil prices, which coincided with the onset of events in Ukraine, shale fuel companies did not increase oil production.
Oh my! Oil cartels exist! And they even want to make money! How can this be?
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▪️ Why is South Asia the most promising region in the world?
▪️ How is the US trying to shape the region for itself in 2024?
▪️ How are new trade routes and military conflicts around the world making South Asia a major geopolitical center of power?
Find the answers on the Gaganauts of Geopolitics channel, the NUMBER 1 source on Telegram for South Asian news.
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▪️ How is the US trying to shape the region for itself in 2024?
▪️ How are new trade routes and military conflicts around the world making South Asia a major geopolitical center of power?
Find the answers on the Gaganauts of Geopolitics channel, the NUMBER 1 source on Telegram for South Asian news.
🇮🇳🇵🇰🇱🇰🇳🇵🇦🇫🇧🇩🇧🇹🇲🇻
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Indonesia seeking investors for development of five oil and gas fields
The offered blocks include an offshore block in East Kalimantan, which contains approximately 1.1 trillion cubic feet of natural gas, blocks in Central Andaman with potential reserves of 100 million barrels of oil and 500 billion cubic feet of natural gas, and blocks in Sulawesi with estimated reserves of 850 million barrels of oil and 4.7 trillion cubic feet of gas.
Arifin Tasrif, the country's Minister of Energy, announced that Indonesia plans to conduct around 10 tenders for oil and gas deposits throughout the year. This initiative is part of the country's efforts to meet its increasing oil and gas demands, especially as Indonesia transitions from being an oil-exporting country to one that consumes more oil domestically due to rising internal demand. The development of these new fields is aimed not only at satisfying the needs of local refineries but also at restoring oil and gas revenues to Indonesia's budget.
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The offered blocks include an offshore block in East Kalimantan, which contains approximately 1.1 trillion cubic feet of natural gas, blocks in Central Andaman with potential reserves of 100 million barrels of oil and 500 billion cubic feet of natural gas, and blocks in Sulawesi with estimated reserves of 850 million barrels of oil and 4.7 trillion cubic feet of gas.
Arifin Tasrif, the country's Minister of Energy, announced that Indonesia plans to conduct around 10 tenders for oil and gas deposits throughout the year. This initiative is part of the country's efforts to meet its increasing oil and gas demands, especially as Indonesia transitions from being an oil-exporting country to one that consumes more oil domestically due to rising internal demand. The development of these new fields is aimed not only at satisfying the needs of local refineries but also at restoring oil and gas revenues to Indonesia's budget.
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US buy more from Russia
According to the latest data from March 2024, trade between the United States and Russia continues and has even sharply increased by 1.5 times. Russian imports to the U.S. amounted to $427 million, the highest figure since May 2023. Exports from the U.S. to Russia were $43.7 million.
It's interesting what Russia sells: fertilizers, enriched uranium, platinum and turbojet engines.
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According to the latest data from March 2024, trade between the United States and Russia continues and has even sharply increased by 1.5 times. Russian imports to the U.S. amounted to $427 million, the highest figure since May 2023. Exports from the U.S. to Russia were $43.7 million.
It's interesting what Russia sells: fertilizers, enriched uranium, platinum and turbojet engines.
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It has been a while since we last updated on the "successes" of Argentine democracy under Javier Milei:
- In March, Argentina's industrial production plummeted by 21% compared to the previous year. Since Milei took office, production has never been in the positive—it only keeps declining.
- Milei met with Elon Musk to discuss lithium mining in the country. No new contracts were signed.
- The annual inflation rate in April reached 290%, increasing by 8.8% over the month.
- Trade unions have announced a strike against Milei's reforms, stating, "The government works for the rich while the poor become poorer."
- The anti-globalist and World Bank critic Milei borrowed $800 million from the IMF.
- Despite inflation, Milei still reduced the central bank's rate from 50% to 40%.
- Meat consumption in the country has been declining for five consecutive months.
- But at least Milei makes strong speeches against China and BRICS!
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- In March, Argentina's industrial production plummeted by 21% compared to the previous year. Since Milei took office, production has never been in the positive—it only keeps declining.
- Milei met with Elon Musk to discuss lithium mining in the country. No new contracts were signed.
- The annual inflation rate in April reached 290%, increasing by 8.8% over the month.
- Trade unions have announced a strike against Milei's reforms, stating, "The government works for the rich while the poor become poorer."
- The anti-globalist and World Bank critic Milei borrowed $800 million from the IMF.
- Despite inflation, Milei still reduced the central bank's rate from 50% to 40%.
- Meat consumption in the country has been declining for five consecutive months.
- But at least Milei makes strong speeches against China and BRICS!
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The European Union Anticipates Rising Oil Prices
The European Commission has raised its forecast for the average annual price of Brent crude oil for the current year to $85.4 per barrel.
Among the main reasons for the increase in oil prices, the EC highlights political instability in producing countries and logistical issues in the Red Sea straits.
Additionally, the EC notes that further increases in oil prices will negatively impact the European economy and contribute to rising inflation in EU countries.
But Saudis would be happy!
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The European Commission has raised its forecast for the average annual price of Brent crude oil for the current year to $85.4 per barrel.
Among the main reasons for the increase in oil prices, the EC highlights political instability in producing countries and logistical issues in the Red Sea straits.
Additionally, the EC notes that further increases in oil prices will negatively impact the European economy and contribute to rising inflation in EU countries.
But Saudis would be happy!
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The company's annual revenue reached €2.321 billion, marking a 33.5% increase compared to the previous year. However, the company's profit grew by only 13.6% to €313 million, with 85.6% of this coming from in-game purchases, DLCs, subscriptions, and other services.
The monthly active user base of Ubisoft's games rose to 138 million, just 4% higher than the previous year. Despite this growth, Ubisoft continues to face substantial expenses. Since 2022, the company has laid off around 1,700 employees as part of its optimization efforts, replacing them with new hires who decided that a black samurai in medieval Japan would be a fun concept.
The announcement of Assassin's Creed: Shadows has been met with heavy criticism and downvotes. The game features a black samurai protagonist, a concept that is historically ambiguous and has been met with skepticism.
The value of Ubisoft's shares has plummeted nearly fourfold since 2021, dropping from $80 to $20 per share.
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