Five things to know to start your Monday

May 23, 2022 Mary

US auto industry gets boost of $10 bn from Hyundai Motor Group

South Korean automobile giant, Hyundai Motor Group, valued at $30.65 billion according to companiesmarketcap.com, said on Sunday, May 22, 2022, that plans to invest an additional $5 billion aimed at reinforcing its collaboration up to 2025 in the United States have been finalised.

The company’s partnership is expected to create a collaborative atmosphere with several U.S. firms in areas that will promote the advancement of technology.

This information was made available when President Joe Biden made a business-friendly visit to Seoul, South Korea, where it was agreed that the company invest in “areas of robotics, urban air mobility, autonomous driving, and artificial intelligence.”

Prior to the US President’s visit, the company announced plans to invest $5.5 billion in electric vehicle (EV) production and battery facilities in Georgia, USA.

Hyundai Motor Group, which is the holding company for Hyundai Motor Co and Kia Corp, has said that it decided on building an electric vehicle and battery facilities in Georgia because of fewer labour union frictions compared to other states in the US.

Many in the US see this deal as President Biden compromising for the greater good of creating job opportunities, a deviation from its pro-union stand just to woo investments overseas.

“Hyundai and any company investing in the United States would benefit greatly from entering into partnerships with some of the most highly skilled, dedicated, and engaged workers in the world, anywhere you can find; and that is American union members,” Biden said.

“Every venture to manufacture electric vehicles and electric vehicle batteries would be made stronger by a collective bargaining relationship with our unions.”

According to Reuters, “the new investment brings its planned U.S. total through 2025 to about $10 billion, above the $7.4 billion it announced last year.”

South Africa on brink of another flood, hundreds evacuated

Another flood disaster hit the rainbow nation again as heavy rains with a lot of pressure consumed unhindered the coastal province of KwaZulu-Natal, damaging roads, houses, and properties in the process.

Reuters, who talked to the South African government officials, said that hundreds of people have been evacuated to safety to avoid the disaster that happened last month, where more than 400 people were feared dead.

Unfortunately, the people of the province have yet to recover from last month’s damage, in which 448 people were killed, 88 remain missing, over 6,800 were displaced, and infrastructure worth more than R25 billion (or $1.58 billion) damaged.

Of late, the negative impact of global warming has resulted in more floods in coastal areas of the world. Kwazulu-Natal, which is located along the shoreline of the Indian Ocean and shares borders with three other provinces and countries such as Mozambique, Eswatini, and Lesotho, had received warnings from the South African Weather Service, informing residents to take safety as another destructive rainfall was ahead of them.

Sipho Hlomuka, member of the executive council for Cooperative Government and Traditional Affairs, while speaking to the media, said, “So far the greatest impact is expected along the coastal and north-eastern parts of KwaZulu-Natal.”

He said approximately 250 people had been evacuated from care centres in Tongaat and Tehuise in Durban, including retirement villages. Only one family was evacuated due to the collapse of an informal dwelling.

“This heavy rainfall has resulted in the flooding of roads, human settlements, and damage to properties.” “We understand that some areas are inaccessible and have become islands at this stage,” he said, adding they had yet to receive a full report on the impact of the latest heavy rains.

Germany enters strategic gas partnership with Senegal, says Scholz

The first significant step in the transition away from Russian gas has been taken as German Chancellor Olaf Scholz engaged the Senegalese government in a strategic gas and renewable energy partnership deal. This partnership is believed to play a role in addressing the global energy and food price crisis.

Since Russia’s unprovoked invasion of its neighbour, Ukraine, Germany and the rest of the European Union (EU) have agreed to aggressively pursue plans to replace Russian gas and crude oil, which represents 60 percent of gas consumption and 40 percent of crude oil consumption in Europe.

Scholz said that his trip to Senegal, which is a three-day tour of the country which has billions of cubic metres of gas reserves according to the ministry of petroleum and energy, will most likely produce a beneficial relationship between both countries.

Senegal is expected to benefit from this relationship as it is likely to push the country to become a major gas-producing country in the world.

Scholz said that Germany has initiated talks with the Senegalese government about gas extraction and liquefied natural gas.

“It is a matter worth pursuing intensively,” he said at a news conference with Senegalese President Macky Sall, adding that progress in the talks was in the two countries’ common interest.

Scholz said Germany was also interested in Senegalese renewable energy projects. He did not provide further details.

On Friday, a German government official said Germany could help explore a gas field in Senegal.

Turkey-Nigeria strengthens diplomatic relationship through food

In the spirit of international diplomacy and trade relationships, the Embassy of Turkey has organised a long-week event where Turkey and Nigeria can share ideas and enjoy both cultures through food.

Hidayet Bayraktar, the Ambassador of Turkey to Nigeria, said during the inaugural launch on Saturday that the event was approved by the Turkish President, Recep Tayyip Erdoğan, as a way to strengthen ties between both countries.

According to the News Agency of Nigeria (NAN), Bayraktar said that the event, which would become an annual one, was aimed at showcasing Turkey to the world, especially through its food and culture.

Bayraktar explained that the Chinese, French, and Italians inspired Turkey to spread the love and beauty of Turkish cuisine throughout the world.

The Ambassador noted that the diplomatic relationship between both countries will be even stronger if the Nigerian government can hold a similar event in Turkey where it shares its food, thereby allowing Turks to know Nigeria better.

“Today, we started the Turkish Cuisine Week in Abuja. This is the gala dinner and it is under the auspices of the President of the Republic of Turkey.

“And, the cooperation with the Ministry of Culture and Tourism in Turkey, from now on, every year, it will be an annual event in our whole embassies.”

“We are trying to introduce Turkish cuisine to the world.” We are culturally very rich, with a rich history.”

Bayraktar re-echoed the diversity and growth of Turkish culture and food, saying that “all the culture and food we have today are a combination of our richness in culture.”

” It is also an opportunity for Nigerians to taste the food and know about the richness of the Turkish foods.

“This is one of the first nights of the week-long activities in Abuja. All through this week Frazer suites will have Turkish cuisine on their menu, “he said.

Also speaking at the event was the Minister of Information and Culture, Lai Mohammed, who noted the stronger impact food had in bridging the gap between countries than hard core diplomacy.

The Minister noted that the cordial and beneficial relationship that both countries have built over the years will continue to blossom in the years to come.

“What we have witnessed tonight is the growing power of what I call self-power, self-power in the area of tourism and how countries today are using tourism to bind countries together.”

“How they are using tourism to reach out to people, and how tourism, especially gastronomy, music, film, and fashion, are not just tools of trade but also tools of diplomacy.

“What we have witnessed tonight is the beginning of a one-week gastronomy. It is quite significant in the sense that many countries are known for the kind of gastronomy they provide.

“And, they have influenced the world, and sometimes conquered the world through food.” Mohammed said.

US stocks futures rise on Monday

Equity trading in the major US stock markets rose on Monday, despite the markets’ extended losses caused by rising interest rates, high inflation (8.7 percent), and most listed companies’ uncertain growth outlook.

As a result, Dow Jones average futures increased by 0.7 percent, S&P 500 futures increased by 0.9 percent, and Nasdaq 100 futures increased by 1.1 percent.

According to tradingeconomics, the Dow last week “marked its first eight-week losing streak since 1923, while the S&P 500 and Nasdaq Composite both capped their first seven-week losing streak since 2001.”

Consumer staples, consumer discretionary, and communication services stocks led the way in eight of the 11 S&P sectors that posted losses last week.

The losses sustained by the 8 sectors were as a result of information investors received about major US retailers indicating that corporate margins are beginning to be affected by rising inflation and a weakening consumer base.

Meanwhile, the market awaits a fresh batch of earnings reports this week, including an array of big retail names. This is according to tradingeconomics.

Not forgetting the minutes of the Federal Reserve’s May meeting and US GDP estimates scheduled to be held tomorrow and next, May 24 and 25, 2022.