Exclusive: VW eyes buying big stake in China partner JAC, taps Goldman - sources - Reuters

HONG KONG/FRANKFURT (Reuters) - Volkswagen AG is exploring purchasing a big stake in its Chinese electric vehicle joint venture partner JAC Motors and has tapped Goldman Sachs as an adviser on the plan, people with direct knowledge of the matter said.

FILE PHOTO: FILE PHOTO: A Volkswagen badge on a production line at the Volkswagen plant in Wolfsburg, Germany, March 1, 2019. REUTERS/Fabian Bimmer/File Photo

The move by VW, the largest foreign automaker in China, to buy into Anhui Jianghuai Automobile Group (JAC Motors) is the latest by foreign automakers to boost ownership in the world’s biggest car market since Beijing relaxed rules last year.

Rival German automaker BMW agreed in October to buy control of its main joint venture in the country for 3.6 billion euros ($4.05 billion). And Daimler AG also plans to increase its stake in local partner BAIC Motor.

The stake purchase move shows that JAC would be a key player in VW’s big global bet on EVs and on strong Chinese demand for such vehicles. VW plans to shift a large part of its planned EV production in China to JAC if it ends up getting control of JAC, said one of the people.

Foreigners were previously prevented from controlling any Chinese automaker or joint venture. Beijing last year removed such caps for firms making fully electric and plug-in hybrid vehicles. Limits on commercial vehicles makers ease in 2020 and by 2022 for the wider car market.

Chinese Premier Li Keqiang promised the European Union on Tuesday that Beijing would no longer force foreign companies to share sensitive know-how when operating in China and was ready to discuss new global trading rules on industrial subsidies.

VW, which has a market capitalization of nearly $85 billion, does not currently own shares in Shanghai-listed JAC, which has a market value of more than $1.7 billion, according to Refinitiv data.

The German car giant’s plans are at an early stage but it is keen to take a big stake, said three of the people. Two of them said it will seek to buy shares from JAC’s major shareholders, which, Refinitiv data showed, are mainly state-backed firms owning over 40 percent.

JAC’s parent, Anhui Jianghuai Automobile Group Holding, holds a 24 percent stake and is fully controlled by the local government.

When contacted by Reuters, VW said: “We are carefully watching what the implications are for our business and for our joint venture partners. In this regard we will explore all possible options together with all stakeholders to secure long-term success in China.”

JAC and its parent didn’t respond to requests for comment. Goldman declined to comment. The people declined to be identified as the matter was confidential.

JAC is trading at a price-to-book ratio of 0.93, which means VW would have to pay a premium for shares since JAC’s state shareholders cannot sell shares for less than their book value.

The Chinese automaker’s shares jumped and hit the daily 10 percent maximum increase limit on Wednesday afternoon. VW shares were slightly lower in early trading.

“The news shows the bargaining power of companies like JAC and BAIC is stronger, and Volkswagen’s and Daimler’s determination to cooperate with Chinese partners in the long-term is also firm,” said Patrick Yuan, a Hong Kong-based analyst at Jefferies.

VW IN CHINA

Wolfsburg-based VW, which delivered 4.21 million cars in mainland China and Hong Kong last year, has operated in China for decades. Besides JAC, it has joint ventures with state-owned FAW Group and SAIC Motor.

FILE PHOTO: Employees work on a production line manufacturing light trucks at a JAC Motors plant in Weifang, Shandong province, China November 30, 2018. REUTERS/Stringer/File Photo

It formed its 50:50 JV with JAC in 2017 to research and develop zero-emission passenger cars as the German automaker has committed almost one-third of the industry’s EV spending, about $91 billion. Separately, South Korea’s SK Innovation Co said it is in talks to set up separate battery-making JVs with VW and Chinese partners, Reuters reported on Wednesday.

JAC, China’s 11th largest local automaker by group sales, makes a range of commercial vehicles including pickup trucks and heavy duty trucks. It also produces vehicles for electric car maker NIO Inc.

JAC warned in January of a 770 million yuan net loss for 2018 mainly due to a drop in car sales, compared to a 432 million yuan profit in 2017. Excluding exceptional items such as government subsidies, losses would reach 1.9 billion yuan, the company said. It will release annual results on April 30.

Reporting by Julie Zhu, Arno Schuetze and Yilei Sun; Additional reporting by Edward Taylor in Frankfurt and Kane Wu in Hong Kong; Editing by Jennifer Hughes and Muralikumar Anantharaman

Our Standards:The Thomson Reuters Trust Principles.

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2019-04-10 05:11:00Z
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Asia stocks pull back amid trade, global growth worries - MarketWatch

Asian shares fell Wednesday following a slide on Wall Street amid growing tensions between the U.S. and the European Union and a dim forecast on global economic growth.

Japan’s benchmark Nikkei 225 NIK, -0.53%  dropped 0.6% in. Australia’s S&P/ASX XJO, +0.03%  was flat, along with the South Korea’s Kospi SEU, +0.49% Hong Kong’s Hang Seng HSI, -0.29%  drop 0.4%, while the Shanghai Composite SHCOMP, -0.07%  fell nearly 0.4%.

On Wall Street, the S&P 500 SPX, -0.61%  index fell 17.57 points, or 0.6%, to 2,878.20. The Dow Jones Industrial Average DJIA, -0.72%  dropped 190.44 points, or 0.7%, to 26,150.58. The Nasdaq Composite COMP, -0.56%  slid 44.61 points, or 0.6%, to 7,909.28. The Russell 2000 index RUT, -1.22%  of small-cap stocks gave up 19.32 points, or 1.2%, or 1,559.68.

European indexes also finished broadly lower, giving up early gains, after the U.S. threatened to impose $11.2 billion in tariffs on European products, including cheese, wine and helicopters.

The threat from President Donald Trump could make investors even more concerned about trade disputes hurting an already slowing global economy at a time when the U.S. is trying to resolve a trade conflict with China.

That spat has already made a list of goods more expensive for consumers and is weighing on an already slowing Chinese economy. Negotiators met again last week and both sides have said they are making progress.

Traders also were disappointed to see that the International Monetary Fund lowered its forecast for global growth this year. The IMF now projects 3.3% global growth in 2019, matching the weakest year since 2009. The U.S. fared particularly poorly in the report, with growth now expected at 2.3%, down from 2.9% in 2018.

Investors will get more clues about the Fed’s intentions Wednesday, when the central bank releases minutes from its latest policy meeting. The European Central Bank will also meet Wednesday.

“Amid the sporing of growth and trade tension concerns once again, sentiments in Asia markets have once again been undermined,” said Jingyi Pan, market strategist at IG in Singapore.

Benchmark U.S. crude CLK9, +0.36%  rose 11 cents to $64.09. It fell 0.7% to settle at $63.98 a barrel Tuesday. Brent crude LCOM9, +0.21%  added 4 cents to $70.65 a barrel.

The dollar USDJPY, -0.01%  fell to 111.14 yen from 111.28 yen Tuesday. The euro EURUSD, +0.1066%  inched down to $1.1257 from $1.1277.

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2019-04-10 05:08:00Z
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Bank of America raises minimum wage to $20 per hour - WTHR

CHARLOTTE, N.C. (WTHR) — Bank of America CEO Brian Moynihan says some employees will get a pay raise beginning May 1, and another one is two years.

Moynihan said on MSNBC Tuesday the bank is raising minimum wage $17 an hour next month and $20 an hour in two years.

"If you get a job at Bank of America, you'll make $41,000," Moyniham said. "With the success our company has ... we have to share that success with our teammates."

According to a press release, the company will raise minimum wage in increments between now and 2021, when it will reach $20 an hour. The raises come after the bank raised minimum wage from $13.50 to $15 an hour in 2017.

In addition to the pay increases, Moynihan also said the bank has frozen healthcare cost increases for lower-paid employees.

According to CNBC, a 2013 report from the Committee for Better Banks showed about one-third of bank tellers were on some form of public assistance like Medicaid to food stamps.

Moynihan himself has also gotten a recent raise. His salary increased 15 percent to $26.5 million.

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2019-04-09 15:36:10Z
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$4 gas is nearly a reality for many Americans - CNN

A survey of more than 5,000 gas stations conducted by AAA shows that the average price for a gallon of regular gas is now $2.75, up 11% in the last month. And the average price is already above $3 a gallon in six western states: California, Hawaii, Washington, Oregon, Nevada and Alaska.

Four-dollar gas is the average in a couple of California counties. Many others are within a few cents of that mark, including San Francisco, where the average price is $3.98. The statewide average in California is up 20 cents a gallon, or 5%, to $3.83 in just the last week.

The Midwest has also been hit by price spikes. The average price in Chicago has jumped 46 cents a gallon, or 16%, to $3.27 in the last month.

Unplanned refinery maintenance at several locations is responsible for the sudden, and uneven, increases across the nation, said Tom Kloza, head of energy analysis for the Oil Price Information Service. Western states are particularly vulnerable to supply disruptions because they have less refining capacity than other locations across the United States.

"The western half of the country hasn't added any refining capacity this century," said Kloza. "It's been a cluster of difficulties but not disasters hurting supplies, particularly out in the West."

Kloza said $4-a-gallon gas will be common in California and perhaps in some other western states in the coming weeks. But most of the country could start to see some relief in gas prices soon as refineries along the Gulf Coast start to come back online from scheduled maintenance in the coming weeks.

Crude oil prices have also played a role in the steady rise in gasoline prices, although gas prices increases have outpaced those in oil markets.

US crude oil is up 51% since December 24. American sanctions on Iran and Venezuela and fighting in Libya have combined with a cutback on oil production by OPEC nations to drive up the price of oil.

"Almost every day since the day after Christmas, both gas prices and oil prices have crept up," said Kloza.

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2019-04-09 15:20:00Z
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How to Get Free Ice Cream at Ben & Jerry's Today - Lifehacker

Spring is here, which means it’s once again for the most wonderful day of the year: Free Cone Day at Ben & Jerry’s.

For those not already familiar with the annual ice cream event, the franchise opens its doors once a year to offer a free cone to anyone willing to stand in line. In the past, Ben & Jerry’s has also used the day to register new voters, as one of the company’s pet political agendas is battling voter disenfranchisement. They’ve even sent out trucks to give out free ice cream in Florida and inform voters about the measure to restore voting rights to former felons in the state (which passed!), as the New Times reported.

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So, the cone isn’t entirely without strings, but they’re ones I’m happy to have pulled. And Thrillist shared this warm quote from their CEO about their motivations:

“We’re nothing without our fans,” CEO Matthew McCarthy said in a statement. “This is one of our favorite days of the year. It’s a special tradition, and I can’t wait to see all the smiles and happiness Free Cone Day brings. It’s all about saying thank you to our fans.”

Ben & Jerry’s locations all over the world are supposed to be participating; as a frequent enjoyer of Free Cone Day, my recommendation is to get your ice cream early and to tip the scoopers. They’re working harder than they have all year to make your day a little sweeter.

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2019-04-09 14:28:00Z
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What's the best day to buy gasoline? - Fox News

(Getty Images)

What difference does a day make? When it comes to buying gas, not that much.

A study by Gasbuddy.com found that prices vary predictably day to day, but over the course of a year an average driver will only save $20 to $30 by gaming the system.

That said, there’s no reason to pass up the equivalent of a free fill-up, and according to USA Today, the best time to fill up on average is Monday morning. The worst? Fridays.

Gasbuddy.com says it’s all about good old fashioned supply and demand.

"Very early in the week, when gas stations are generally a little bit quieter traffic-wise, is a great time to fill up," Patrick DeHaan, GasBuddy head of petroleum analysis told the newspaper. "We generally see more volatility and higher prices later in the week."

The ideal day does vary state to state, with Monday being the best in 29 and the District of Columbia and Tuesday in 19, while Wednesday is bargain day in Hawaii and Sunday in Utah.

Here’s the full list for best days to hit the pump:

Monday:

Alaska, Arizona, California, Colorado, Connecticut, District of Columbia, Florida, Idaho, Illinois, Indiana, Kentucky, Maine, Massachusetts, Michigan, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Oregon, Rhode Island, South Carolina, South Dakota, Vermont, Virginia, Washington, West Virginia, Wyoming

Tuesday:

Alabama, Arkansas, Delaware, Georgia, Iowa, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Missouri, Nebraska, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Wisconsin

Wednesday:

Hawaii

Sunday:

Utah

(CLICK HERE FOR THE WORST)

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2019-04-09 14:01:08Z
CBMiP2h0dHBzOi8vd3d3LmZveG5ld3MuY29tL2F1dG8vd2hhdHMtdGhlLWJlc3QtZGF5LXRvLWJ1eS1nYXNvbGluZdIBQ2h0dHBzOi8vd3d3LmZveG5ld3MuY29tL2F1dG8vd2hhdHMtdGhlLWJlc3QtZGF5LXRvLWJ1eS1nYXNvbGluZS5hbXA

Stocks - Wall Street Slumps as New Trade Worries Emerge - Investing.com

© Reuters.

Investing.com - Stocks fell at the start of trading Tuesday as a new global trade worry about tariffs dented sentiment.

The fell 0.9%, while the lost 0.6%. The was off 0.33%.

Global stocks were on edge after the United States threatened to slap tariffs on hundreds of European goods as retaliation for subsidies given to Airbus. The European Union has begun preparations to respond in kind over Boeing (NYSE:) subsidies, an EU official said.

Investors were also on edge about quarterly results, with earnings season about to begin and the first-quarter profits of S&P 500 companies expected by analysts to fall.

"Investors are now wondering if companies are no longer growing their earnings, then how much do they want to pay for these earnings," said Kim Forrest, chief investment officer at Bokeh Capital Partners.

"The jobs numbers weren't necessarily as bad as most of us had thought, but everybody is looking at earnings season to tell what individual companies are seeing in the future."

Among active individual stocks, Wynn Resorts (NASDAQ:) was down 4% after confirming it offered $7.1 billion for Australian-based casino operator Crown Resorts.

American Airlines (NASDAQ:) shares fell 2.3% on for the first quarter.

And Novartis ADRs (NYSE:) fell 10.5% after the company spun off its eye-care unit Alcon.

-- Reuters contributed to this report.

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2019-04-09 13:40:00Z
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