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General Motors takes $5bn charge against China businesses

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General Motors takes bn charge against China businesses

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General Motors has taken a $5bn charge against its businesses in China, laying bare the slowdown in what was once the US carmaker’s largest market.

On Wednesday, GM said that there was a “material loss in value of our investments in certain of the China joint ventures . . . in light of the finalisation of a new business forecast and certain restructuring actions”.

The company said that it would write down the value of its interest in its Chinese joint ventures by as much as $2.9bn, and record an additional $2.7bn in restructuring charges.

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GM shares were down 3 per cent in pre-market trading on Wednesday, having fallen 2.5 per cent in the previous session.

GM and Germany’s Volkswagen are two of the largest western carmakers operating in China. But like many rivals, both are struggling to maintain their position amid rising competition from local manufacturers.

Problems in China have also recently led to steep falls in quarterly profit for Toyota, Honda and BMW.

GM runs a series of joint ventures in the country alongside SAIC Motor Corp.

Earlier this month, VW also announced that it has sold its plant in Xinjiang following scrutiny over its presence in a region of China where Beijing has been accused of widespread human rights abuse.

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In October, GM’s chief executive Mary Barra told investors that the company’s restructuring measures would start to bear fruit by the end of this year.

“In China, you’ll begin to see evidence of a turnaround yet this year, with a significant reduction in dealer inventory and modest improvements in sales and share,” she said.

But analysts say western carmakers are unlikely to regain the profits and market share they once enjoyed in China, forcing many to refocus their efforts on the US, now GM’s biggest market.

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Read Representative Jerrold Nadler’s Letter

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Read Representative Jerrold Nadler’s Letter

JERROLD NADLER
12TH DISTRICT, NEW YORK
JUDICIARY COMMITTEE
RANKING MEMBER
Congress of the United States
House of Representatives
Washington, DC 20515
NADLER.HOUSE.GOV
December 4, 2024
Dear Democratic Colleague:
It has been the greatest honor of my life to serve as Chairman and Ranking Member of the House Judiciary
Committee these past 7 years. I am grateful to have had the opportunity to help lead our party’s efforts to
preserve the rule of law and to provide for a more just society that respects the civil rights and civil liberties of
all Americans.
Under my leadership, the Committee responded to some of our nation’s biggest challenges. When Donald
Trump and his administration threatened the rule of law and our democratic order, I led the Judiciary
Committee’s efforts to hold him accountable for his various abuses of power, culminating in two historic
impeachments. As the epidemic of gun violences rages on, we advanced historic legislation to keep Americans
safe in their communities, leading to enactment of the Bipartisan Safer Communities Act—the first significant
gun safety legislation enacted in a generation. When the Supreme Court threatened to undermine protections for
same sex marriage, we enshrined marriage equality in the law with passage of the Respect for Marriage Act.
When the nation watched in horror as George Floyd was brutalized by police, we advanced legislation to hold
law enforcement accountable, while also working to ensure that our communities have the tools and resources to
keep our citizens safe. As Republican voter suppression efforts took hold across the country, we passed
legislation named after our beloved late colleague, Rep. John Lewis, to protect this most fundamental right to
vote. We worked to repair our broken immigration system with legislation to protect Dreamers and to prevent
another Muslim ban. We brought forward the Equality Act, the first comprehensive civil rights legislation
protecting the LGBTQ community. We worked to provide justice to victims of the deadly September 11th
attacks and other victims of terrorism. And we worked to preserve access to justice in the federal courts, protect
consumers from corporate abuses, lower prescription drug prices, and preserve a strong intellectual property
system that promotes innovation and drives economic growth.
The Committee also shined a light on critical issues, such as threats to reproductive freedom and bodily
autonomy in the wake of the Dobbs decision, the need for further criminal justice reform and ending mass
incarceration, the ethics crisis at the Supreme Court, and proposals to strengthen our antitrust laws to preserve
and promote healthy competition in the marketplace.
REPLY TO:
WASHINGTON OFFICE:
2132 RAYBURN HOUSE OFFICE BUILDING
WASHINGTON, DC 20515
(202) 225-5635
DISTRICT OFFICE:
201 VARICK STREET
SUITE 669
NEW YORK, NY 10014
(212) 367-7350

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French parliament votes to oust Michel Barnier’s government

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French parliament votes to oust Michel Barnier’s government

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The French parliament on Wednesday voted to oust Prime Minister Michel Barnier over his proposed deficit-cutting budget, plunging the country into deeper political turmoil.

A motion of no confidence was approved by 331 votes in the 577 member national assembly, as Marine Le Pen’s far-right party teamed up with a leftist bloc to bring down Barnier’s minority government.

Barnier’s administration has collapsed without adopting his contentious 2025 budget that included €60bn in tax increases and spending cuts to reduce France’s deficit, which will reach 6 per cent of GDP this year.

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President Emmanuel Macron will now have to select another prime minister, a task made difficult by a raucous parliament divided into three blocs, none of which is close to having a governing majority.

Barnier’s three-month term as prime minister was the shortest of any premier since France’s Fifth Republic was founded in 1958. It is only the second time a government has been voted down since then. 

The political tumult gripping France comes just weeks after German Chancellor Olaf Scholz’s coalition collapsed, leaving the EU’s two most powerful states in limbo.

Barnier defended his record as prime minister during a national assembly debate before the confidence vote, telling lawmakers: “I have been and am proud to act to build rather than to destroy.”

He said it was “not for pleasure” that he had presented a difficult budget. France’s fiscal “reality will not disappear by the enchantment of a motion of censure”, he added.

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Macron will have to contend with an emboldened Le Pen and her Rassemblement National party, which was decisive in removing Barnier after spurning his last-ditch attempts at a compromise on his budget.

Le Pen said her decision to censure Barnier was prompted by the “necessity to put an end to the chaos, to spare the French people from a dangerous, unfair and punitive budget”.

Macron “is largely responsible for the current situation”, Le Pen told TF1 television shortly after the vote.

When the president appoints a new prime minister, that person would work on a new budget which Rassemblement National “will construct with other forces in the national assembly”, she added.

Mathilde Panot, a leader of the far-left France Unbowed party, slammed Barnier for seeking deals with the Rassemblement National to try to stay in power.

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“Barnier tried to escape censure by choosing dishonour, he has gotten dishonour and censure,” she said.

Marie Lebec, a lawmaker from Macron’s centrist alliance and former minister, said her fellow parliamentarians should put aside party squabbling to find a way forward.

The political crisis risks further spooking financial markets. Barnier had previously warned of a financial and economic “storm” should his government fall without adopting the 2025 budget, saying borrowing costs were on track to exceed €60bn next year, more than the French defence budget.

French borrowing costs on its 10-year sovereign bond hit a 12-year high against Germany’s last week, as investors fretted about the likely failure of Barnier’s government.

After the confidence vote on Wednesday, the euro was flat against the dollar at $1.052, reflecting how the result was widely expected.

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Barnier may stay on as a caretaker premier for a short time, but it will fall to his successor to craft another 2025 budget, ahead of a year-end deadline.

In the meantime, Macron and parliament have several options to pass emergency measures that would avoid a government shutdown and keep public services funded temporarily.

But unlike previously when he procrastinated on picking premiers, Macron aimed to move quickly this time, said a person familiar with his thinking, and he has drawn up a list of potential candidates to succeed Barnier.

The Elysée said Macron would address the nation on Thursday evening in a televised speech.

Barnier was appointed by Macron in September after the president’s centrist alliance lost snap parliamentary elections, which increased the ranks of the far right and leftist parties.

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His departure is a sign of how gridlocked French institutions have become since the elections.

“It feels like a series of impasses in a parliament where no one has a workable majority,” said Bruno Cautrès, political scientist at Sciences Po. “There is a risk that a new government would fall quickly, just as Barnier has done.”

Additional reporting by Ian Smith in London

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Who is Brian Thompson, the UnitedHealthcare CEO gunned down in New York?

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Who is Brian Thompson, the UnitedHealthcare CEO gunned down in New York?

Members of the New York police crime scene unit photograph bullets lying on the sidewalk as they investigate the scene outside the Hilton Hotel in midtown Manhattan where Brian Thompson was fatally shot on Wednesday.

Stefan Jeremiah/AP


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Stefan Jeremiah/AP

UnitedHealthcare CEO Brian Thompson was gunned down outside a Manhattan hotel on Wednesday morning, sparking a search for his killer and an outpouring of condolences.

New York police say the suspect shot Thompson in the chest in a “brazen, targeted attack” at 6:46 a.m. ET outside of the New York Hilton Midtown Hotel — moments before the annual investor conference for UnitedHealthcare’s parent company was set to begin.

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Thompson, 50, lived in Minnesota but was visiting New York City for the conference, which has since been canceled. He was taken to a local hospital and pronounced dead.

Within hours, a manhunt was underway for the gunman, and tributes to Thompson were circulating online.

“Brian was a highly respected colleague and friend to all who worked with him,” UnitedHealth Group said in a statement, adding that it is working closely with the NYPD. “Our hearts go out to Brian’s family and all who were close to him.”

He was CEO since 2021

UnitedHealthcare is the health benefits business within UnitedHealth Group, the country’s largest private health insurer.

The Minnesota-based company is ranked 4th on the Fortune 500 and employs some 440,000 people worldwide. UnitedHealth Group is so dominant, in fact, that the U.S. Justice Department filed a civil antitrust suit just last month to try to block its proposed $3.3 billion acquisition of rival home health care and hospice agencies.

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Thompson was named the CEO of UnitedHealthcare in April 2021.

“Brian’s experience, relationships and values make him especially well-suited to help UnitedHealthcare improve how health care works for consumers, physicians, employers, governments and our other partners, leading to continued and sustained long-term growth,” Andrew Witty, CEO of UnitedHealth Group, said in a release at the time.

Thompson previously held a variety of executive positions — most recently as the CEO of UnitedHealthcare’s government programs businesses, including Medicare — since joining UnitedHealth Group in 2004, according to his LinkedIn profile.

Before that, he had spent more than half a decade working as a CPA at the accounting firm PricewaterhouseCoopers LLC.

Thompson graduated from the University of Iowa in 1997 with a degree in business administration and accounting, according to LinkedIn.

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Flags fly at half mast outside the United Healthcare corporate headquarters in Minnetonka, Minnesota.

Flags fly at half mast outside the United Healthcare corporate headquarters in Minnetonka, Minnesota on Wednesday.

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He is a father of two

Thompson is survived by his wife and two children, according to media reports.

Thompson’s sister-in-law, Elena Reveiz, told the New York Times that he was a good father.

“He was a good person, and I am so sad,” she said.

Thompson’s wife, Paulette Thompson, told NBC News that he had been receiving threats.

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“Basically, I don’t know, a lack of coverage? I don’t know details, I just know that he said there were some people that had been threatening him,” she said, adding that she couldn’t give a more thoughtful response because she was trying to console her kids.

NYPD Police Commissioner Jessica Tisch said at a midday news conference that while the motive for the shooting remains unclear, the preliminary investigation suggests it was a “premeditated, pre-planned targeted attack.”

She said the suspect, wearing dark clothes and a mask, was “lying in wait for several minutes” before approaching Thompson from behind and firing several rounds.

Colleagues and public officials pay tribute

Several of Thompson’s former colleagues shared recollections of him with the Minnesota Star Tribune on Wednesday, remembering him as a hard worker and a good person.

John Penshorn, a former UnitedHealth Group executive who worked with Thompson for more than a decade before his 2019 retirement, described him as “humble, a servant-leader and family man.”

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“He was just an incredible guy — nice, resourceful,” said Steve Parente, a former Trump administration healthcare official who said he had worked with Thompson to implement the system for distributing federal financial aid to health care providers early in the COVID-19 pandemic. “This is just a total tragedy.”

Elected officials from Thompson’s home state of Minnesota — where UnitedHealthcare is a major employer — also paid their respects on Wednesday, including Sen. Amy Klobuchar, Minneapolis Mayor Jacob Frey and Minnesota Gov. Tim Walz.

“This is horrifying news and a terrible loss for the business and health care community in Minnesota,” Walz wrote.

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