World Street | China reign on rare earth; Toyota, Honda on reverse gear; Tesla's bumpy ride; NYC bulls; and raging tariff tango

World Street offers a look into various developments from the world of business and economy.

China bans the export of crucial extraction tech for national security. Toyota faces scrutiny over safety, shares fall. Honda recalls 2.5 million vehicles for fuel pump risks. Angola exits OPEC for better interests. Norway probes Tesla's suspension failures. Nike plans a $2-billion cost cut for a leaner future. Argentina approves Bitcoin as official currency. Joe Biden mulls tariffs on Chinese EVs for competitiveness. All these and more in this edition of World Street.

Great Wall

China, the world's top processor of rare earths, on Thursday banned the export of technology to extract and separate the strategic metals. The commerce ministry sought public opinion last December on the potential move to add the technology to its 'Catalogue of Technologies Prohibited and Restricted from Export'.

Toyota Tumbles

Toyota Motor shares slumped on Thursday as Japan inspected its subsidiary Daihatsu Motor over safety concerns dating back decades. The world's top-selling automaker also separately announced a recall of 1.1 million vehicles. Shares in Japan's biggest automaker closed down 4 percent, underperforming the benchmark Nikkei which fell 1.6 percent.

Same Pinch

Sticking with recalls, Honda Motor's American unit is recalling about 2.5 million vehicles over risks of fuel pump failure that can cause an engine stall and increase the chances of a crash. The recall includes certain models of the Japanese automaker's most popular models such as the 2018-2020 Honda Accord, Civic, CR-V, HR-V, Ridgeline, Odyssey and some more Acura models.

Cartel Quits 

Angola is leaving the Organization of Petroleum Exporting Countries (OPEC) because membership is not serving its interests, oil minister Diamantino Azevedo said on Thursday. Angola, which joined the OPEC in 2007, produces about 1.1 million barrels of oil per day, compared with 28 million bpd for the whole group.

Troubled Tesla 

Tesla faces an inquiry by Norway's traffic safety regulator into suspension failures in the company's electric cars that could result in a recall, the agency told Reuters. Norwegian Public Roads Administration started questioning Tesla in September 2022 and asked the automaker to assess consumer complaints about lower rear control arms breaking on its Model S and X vehicles.

Beckoning Bulls

Bankers advising US companies on stock market listings are hopeful that the new year will bring a recovery in initial public offerings after the Federal Reserve signalled it may start reversing the fastest escalation in interest rates in decades. "The IPO markets will be much better in 2024 than they were this year, and my gut tells me that both volumes and breath of access will progress as we move through the year," said David Ludwig, global head of equity capital markets (ECM) at Goldman Sachs.

Chasing Legacy Chips

The US Commerce Department plans to assess Chinese production of essential-yet-outdated semiconductors, aiming to gauge the extent of US companies' reliance on Chinese technology. In January, the Bureau of Industry and Security will survey over 100 companies in various sectors to comprehend their procurement and utilisation of legacy chips, said a Bloomberg report citing a Commerce official.

Had to 'Just Do It'

Nike has unveiled plans to slash $2 billion in expenses over the next three years, aiming to rejuvenate its stalled momentum and ignite innovation. CEO John Donahoe and CFO Matt Friend expressed confidence that the cost-cutting measures will eventually make Nike a stronger and more efficient company. However, the immediate future foresees a challenging phase of corporate streamlining. Anticipating restructuring charges of up to $450 million in the quarter ending February 28, largely attributed to severance costs, it suggests a substantial employee reduction is underway.

Peso Courts Bitcoin 

Argentina has formally approved the inclusion of Bitcoin in legally binding contracts, as stated by the country's newly appointed foreign minister Diana Modino. Under President Javier Milei, who is supportive of cryptocurrencies, Argentina has reaffirmed its position, acknowledging that Bitcoin can be recognised as a valid currency in official contracts. While specific government measures related to crypto were not disclosed, the early acknowledgment aligns with Milei’s perspective on countering financial inefficiencies and corruption through Bitcoin.

Tariff Tango  

The Joe Biden administration plans to raise tariffs on Chinese electric vehicles and other goods to enhance the competitiveness of US clean-energy products. Discussions among officials from the White House and various Cabinet agencies are on as part of a broader strategy to address trade issues with China and promote domestic clean-energy industries.