Foxconn to Invest $7 Billion in the US for Fear of Protectionism

January 23, 2017

Steel steals the spotlight today as the World Steel Association expects the global steel production to increase by 0.5 percent this year. More than 2,500 voices in Sentifi financial crowd are discussing what this increase entails for the global economy, so stay with Sentifi and keep watch.

sentifi top attentions january 23

Steel: Global steel industry is expected to recover

The global steel industry is showing some signs of a strong recovery, with a 5 percent growth this year. The recovery could be much stronger if the continued weakness in investment globally subsides. China, along with emerging economy, is forecasting better growth, further aiding the steel industry. That said, the U.S. steel industry still faces the threat of cheaper imports due to a stronger dollar and lower oil prices, but steal prices are seeing recovery. Steel demand is expected to decline by 2 percent and increase moderately in Europe.

Hon Hai Precision: Considers an $7 billion investment in the U.S.

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The world’s largest contract electronics maker Foxconn, formerly known as Hon Hai Precision, is considering investing more than $7 billion into a display-making plant in the U.S. This is the company’s reaction to U.S. President Donald Trump’s pledge to put America first in his inauguration speech, which triggered fear of protectionism and a trend for politics to hinder economic development.

SABIC: Buys Shell’s 50 percent stake in a joint venture

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Saudi Basic Industries Corp. has agreed to pay $820 million for Royal Dutch Shell Plc.’s 50 percent stake in a petrochemical joint venture. This is the third project with the SABIC that Dutch has existed since 2014.  The partnership between the companies was planned to end in 2020. The deal means that SABIC now has full ownership of the venture. The reason for this breakup was that Shell’s acquisition of BG Group sent mixed signals to BASIC about Shell’s commitment in the Middle East.

Toshiba Corp.: Sells part of its semiconductors business

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The Japanese company is in a tough situation as its nuclear power-related debts are growing, forcing it to put 20 percent to 30 percent of its core semiconductors business on sales. The company is aiming to boost its capital base by the end of the financial year in March to offset multi-billion dollar charges for its U.S. nuclear project cost overruns. The company might even ask for state help, a practice previously has been employed by other Japanese technology companies for their restructuring plans.

United Nations: The U.S. is leaving the UN?

Approximately 4,500 Sentifi financial voices are discussing the possibility of the U.S.’s departure from the United Nations due to the fact that a bill was introduced into Congress in early January 2017 to remove the country’s participation in the UN. According to the discussions, “the bill would repeal the United Nations Participation Act of 1945, and the bill calls for the President to terminate U.S. membership in the United Nations, including any organ, specialized agency, commission, or other formally affiliated body; and closure of the U.S. Mission to the United Nations.” The bill since then has yet to be passed, but given Trump’s attitude regarding forcing the UN member states to pay their dues, the U.S. leaving the UN may not be a far-fetched possibility.

Qualcomm: Apple files a lawsuit against Qualcomm

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Apple has filed a patent lawsuit against its partner Qualcomm and accused the company of failing to pay $1 billion in owed rebates in retaliation for Apple’s part in a Korean antitrust investigation. Apple also accused Qualcomm of participating in unsavory business practices from price-gouging to extortion. Apple is seeking unspecified damages including the $1 billion in unpaid payments.

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