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cover of episode Auto trouble brewing over rare earth curbs

Auto trouble brewing over rare earth curbs

2025/6/5
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Wall Street Breakfast

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Julie Morgan: 中国对稀土元素的出口管制导致汽车行业面临供应链中断的风险。作为对特朗普总统关税的反击,中国加强了对稀土出口的控制,导致汽车供应商在获取出口许可证方面面临越来越多的延误。中国在全球关键矿产供应链中占据主导地位,生产了全球约90%的稀土,这些稀土广泛应用于汽车、能源、半导体和国防工业。欧洲汽车供应行业已经遭受了重大干扰,受影响的汽车零部件对内燃机和电动汽车至关重要。这些限制导致欧洲多家生产线和工厂关闭,预计未来几周库存耗尽后影响将进一步扩大。欧盟正与中国谈判解决问题,并寻求供应链多元化,已确定13个海外关键原材料项目,以确保可持续供应,包括英国、乌克兰、格陵兰、加拿大和南非。

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Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning! Today is Thursday, June 5th. I'm Julie Morgan. Automakers brace for impact, Kleenex nears a deal, and Citi cuts deep in China.

The automotive industry is bracing for supply chain disruptions. Suppliers are increasingly facing delays in getting export licenses from China due to controls on rare earth elements and magnets, which were imposed in retaliation to President Trump's tariffs. China dominates the critical mineral supply chain, producing about 90% of the world's rare earths that are widely used in the auto, energy, semiconductor, and defense industries.

One auto supplier association has warned that the European automotive supply industry is already experiencing significant disruption, adding that the impacted auto parts are critical to combustion engine and electric vehicles.

The group noted that these restrictions have led to the shutdown of several production lines and plants across Europe, with further impacts expected in the coming weeks as inventories deplete. While the European Union is in talks with China to address the issue, the bloc is looking to diversify supply chains.

The EU has identified 13 critical raw material projects overseas to ensure sustainable supply, including in the UK, Ukraine, Greenland, Canada and South Africa.

Kimberly-Clark is nearing a sale of its Kleenex and tissue businesses outside of North America. The Wall Street Journal reported on Wednesday that the buyer is Brazilian pulp producer Susano for $3.5 billion in a deal that could be completed as soon as today. The sale would be part of an attempt by Kimberly-Clark to focus on more profitable areas, according to the report.

Kimberly Clark's global tissue business, known as the International Family Care and Professional Segment, is the smallest of the company's three core divisions with annual net sales totaling less than $3.5 billion and the lowest profit margins of the three.

A cell would leave Kimberly-Clark with its North America business, the company's largest unit with $11 billion in net sales last year, as well as its international personal care division, whose net sales amounted to $5.7 billion in 2024.

Citi Group will cut about 3,500 jobs at its two major technology centers in China. The cuts at the China Citi Solution Centers in Shanghai and Dalian are expected to be completed by Q4 this year. The jobs affected are mostly in the IT services units. A few positions will be transferred to Citi's technology centers elsewhere.

This action is part of Citi's previously announced plan to reduce its global workforce by 20,000 by the end of 2026, as the bank seeks to streamline operations and cut costs amid a challenging global economic environment. Now for a few other articles that are trending on Seeking Alpha. President Trump signs a travel ban for citizens from 12 countries citing security concerns.

Canada will hold off its response on higher U.S. metals tariffs. And the IEA says global energy investment will touch a record $3.3 trillion in 2025. On our Catalyst, watch for the day. This week, we've been telling you about speakers at the Deutsche Bank DB Access Global Consumer Conference. Well, today, it's management from Procter & Gamble and Levi Strauss.

Nintendo will release the Switch 2 in the U.S. and Europe. The next-generation hybrid console builds on the versatility of the original Switch, while introducing significant upgrades in hardware design and features. Retailers Target, Best Buy, and Walmart are expected to see an incremental sales lift.

Side note, I passed by a few GameStop locations yesterday and there was already a line for the Nintendo Switch 2. Yep, they were camped out. Oshkosh will hold an Investor Day event. Management will provide an in-depth review of the company's strategic initiatives, technology highlights, capital allocation priorities, and financial growth targets.

And Lyft will hold its annual meeting with Engine Capital, pushing for its own board nominees.

On Wall Street today, ahead of the opening bell, Dow, S&P and Nasdaq futures are in the green. Crude oil is up 0.2% at $62 a barrel. Bitcoin is up 0.1% at $104,000. Gold is up 0.6% at $3,393. The FTSE 100 is up 0.2% and the DAX is up 0.3%.

Verint Systems is on our list of the biggest movers of the day pre-market. VRNT is up 21% after the company delivered better than expected Q1 results, highlighted by a 24% year-over-year increase in AI annual recurring revenue, which includes its AI-powered software offerings.

On today's economic calendar, at 8.30 a.m., jobless claims. At noon, the Fed's Adriana Kugler speaks on the economic outlook and monetary policy before an economic club of New York luncheon. At 1.30 p.m., the Fed's Patrick Harker speaks on the economic outlook before the Philadelphia Council for Business Economics.

Also at 1.30 p.m., the Fed's Jeffrey Schmid speaks on banking policy before the Future of Banking Navigating Change Conference hosted by the Federal Reserve Bank of Kansas City.

That's it for today's Wall Street Breakfast. Thanks for listening. To take full advantage of Seeking Alpha with coverage on significant stocks and ETFs, become a premium subscriber. Check out seekingalpha.com slash subscriptions. I'm your host, Julie Morgan. Go out and make it a great day.