USD/JPY's Bearish Trend of Last Summer Has Likely Resumed, Chart Shows
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Trump tariffs hit India's garment makers as US buyers say move production
By Dhwani Pandya and Praveen Paramasivam MUMBAI/CHENNAI (Reuters) -Ever since Donald Trump's tariff salvo on India this week, garment maker Pearl Global - whose U.S. client list includes Gap and Kohl's - has been receiving midnight panic calls with an ultimatum: share the tariff hit or move production out of India. To calm U.S. customers' nerves, Pearl Global has offered to shift production to its 17 factories in Bangladesh, Indonesia, Vietnam and Guatemala to bypass the steep U.S. levies on Indian imports. "All the customers are already calling me. They want us to ... shift from India to the other countries," Managing Director Pallab Banerjee told Reuters in an interview. Trump's initial tariff proposals in April - which were lower for India than for the rival Asian garment hubs of Bangladesh, Vietnam and China - had been seen as an opportunity for India to rapidly expand in the $16 billion apparel exports market. But the tables have turned as relations between New Delhi and Washington have soured, with India now facing a 50% tariff, versus 20% for Bangladesh and Vietnam, and 30% for China. Pearl gets roughly half of its business from the United States. Some clients offered to continue taking products from India if it could share the tariff burden, but that is not viable, Banerjee said, without naming the customers. 'IN THE DOLDRUMS' The 50% U.S. tariff - comprising 25% that kicked in on Thursday and another 25% due to come into force on August 28 as a penalty for buying Russian oil - has stunned U.S. garment buyers and their Indian suppliers, who say they are considering taking their manufacturing operations beyond Indian shores, even to less-established garment hubs like Ethiopia and Nepal. Some exporters also say they have been asked by U.S. clients to put orders on hold. New Delhi has called Trump tariffs "extremely unfortunate". India's garment sector was already grappling with a labour crunch and limited production capacity. But the prospect of exporters shifting production outside India would also be a blow to Prime Minister Narendra Modi's "Make in India" policy drive. While Pearl can use its foreign factories to meet U.S. orders, exporters that rely on domestic factories are set to be hit much harder. RichaCo Exports has shipped $111 million of garments to the U.S. this year, with clients such as J. Crew Group, customs data shows. All were made in its more than two dozen factories across India. Around 95% of its annual Indian revenues come from the United States, said general manager Dinesh Raheja. "We're exploring setting up a manufacturing base in (Nepal's capital) Kathmandu," he said. "The industry is in the doldrums." ORDERS ON HOLD Earlier this week, India's biggest jeweller and watchmaker Titan told Reuters it was looking at shifting some manufacturing to the Middle East to maintain low-tariff access to U.S. markets. Amit Agarwal, finance chief of top Indian garment maker Raymond, said he was pinning hopes on the company's one factory in Ethiopia - which faces just a 10% U.S. tariff and could possibly add more production lines within three months to cater to U.S. clients. The tariff threat comes as India was emerging as a big alternative for U.S. garment buyers like Walmart, as Bangladesh faces a political crisis, and companies look to diversify supply chains beyond China. Indian garment hub Tiruppur in the south, considered the country's knitwear capital and which accounts for nearly one-third of apparel exports, was bullish about the future earlier this year when Reuters visited and talked to exporters. Panic has now descended on the hub. Some factories in Tiruppur have been asked by customers to hold orders, while some plan to ship as many goods as possible before the full 50% tariff kicks in, said Naveen Micheal John, executive director at Cotton Blossom India. "An importer, which had placed orders for underwear, has come back saying that if you haven't purchased yarns ... keep it on hold for now," he said. Some garments in Tiruppur cost U.S. clients as little as $1, while a women's or men's T-shirt can vary from about $3.5-$5, which could soon face 50% tariffs, said N. Thirukkumaran, general secretary of the Tiruppur Exporters Association. (Writing by Aditya Kalra. Editing by Mark Potter) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Merchant BESS in India becomes profitable: Ember report
In a landmark development for India's power sector, merchant battery energy storage systems (BESS) have achieved profitability for the first time in 2024, according to a recent report by energy think tank Ember. This significant shift is attributed to the steep decline in battery costs and the ability to earn higher revenues from the increasingly volatile power markets. According to the report, battery costs have dropped by approximately 80% in the past decade, reaching Rs1.7m ($19,375.1) per megawatt-hour (MWh) in 2025, down from Rs7.9m/MWh in 2015. Concurrently, potential revenues from market participation have surged fivefold to Rs2.4m/MWh in 2025 from Rs0.5m/MWh in 2015. This has led to merchant BESS revenues exceeding costs in 2024, establishing these storage systems as a viable electricity grid asset. The report further indicates that the day-ahead market (DAM) of power exchanges has seen peak prices hitting new highs while troughs have deepened. This increased price volatility has opened more opportunities for merchant batteries to generate value. Notably, electricity prices approached the current cap of Rs10 per kilowatt-hour (kWh) in one out of every six hours from 2022 to 2024. Additionally, average midday power prices during the summer months dropped nearly 20% from 2022 to 2024, with prices occasionally falling to nearly zero. Ember's report models various scenarios for power price movements on the exchanges, predicting that by participating in DAM alone, merchant BESS investments could yield an internal rate of return of up to 17% from an investment made in 2025. According to the report, revenue can be further increased by participating in the ancillary services market, which would also enhance returns. The report concludes with the assertion that as India's electricity system evolves to accommodate more variable renewable energy, the investment case for battery storage strengthens. Furthermore, India has already achieved a significant milestone in its clean energy transition by attaining 50% of its installed electricity capacity from non-fossil fuel sources in 2025, surpassing its Paris Agreement 2030 target five years ahead of schedule. In the first half of 2025, India witnessed the fastest growth in renewable power output since 2022 while coal-fired generation saw a decline of nearly 3%, as per a Reuters report. Despite these advances, fossil fuels still accounted for more than two-thirds of the total power generation increase in 2024. "Merchant BESS in India becomes profitable: Ember report" was originally created and published by Energy Monitor, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Reactions to Trump demanding Intel CEO's resignation
(Reuters) -U.S. President Donald Trump has demanded the immediate resignation of Intel CEO Lip-Bu Tan over concerns of his extensive investments in Chinese firms, just months after he assumed leadership of the struggling chipmaker. Tan has invested in hundreds of Chinese technology firms, including at least eight with links to the People's Liberation Army, Reuters reported in April. On Wednesday, Reuters exclusively reported that Republican Senator Tom Cotton questioned Tan's ties to Chinese firms and a recent criminal case involving his former company Cadence Design. Some analysts and investors said Tan's deep knowledge of the Chinese semiconductor landscape is a strategic asset. Others see the political pressure as a sign of growing uncertainty around Intel. Here are some key quotes. ANSHEL SAG, PRINCIPAL ANALYST AT MOOR INSIGHTS & STRATEGY "I believe that POTUS shouldn't be calling for any CEO to be stepping down, especially not one who just took the job this year. I think this all boils down to Lip-Bu's past involvement and investment in Chinese semiconductors, which is also what makes him so valuable as CEO." "He's more aware than most people on earth of China's capabilities and should be an asset to the U.S. and Intel." DAVID WAGNER, HEAD OF EQUITY AND PORTFOLIO MANAGER AT APTUS CAPITAL ADVISORS, AN INTEL SHAREHOLDER "While I can understand that many investors likely believe that President Trump has his hand in too many cookie jars, it's just another signal that he's very serious about trying to bring business back to the U.S. He has momentum from the Apple deal and now hoping that a few more businesses fall into place." RYUTA MAKINO, RESEARCH ANALYST AT GABELLI FUNDS, AN INTEL INVESTOR "I think Trump is mostly attacking Lip-Bu because he wanted to stop the manufacturing business if Intel 14A doesn't work out with external customers. More speculation whether Trump is making some deals with TSMC to do something with Intel. I think it's very much a political move." BLAKE ANDERSON, ASSOCIATE PORTFOLIO MANAGER AT CARSON GROUP "Investors remaining focused on issues like these hint that the company's manufacturing turnaround, and long-term viability, may be dependent on factors external to the company and thus increase long-term uncertainty." SHIRAZ AHMED, FOUNDER AND CEO AT SARTORIAL WEALTH "It's not surprising. I mean we're seeing the administration step in and point fingers at private or corporate CEOs. It's not the first time he's done it, it's likely not the last time he'll do it." PHIL BLANCATO, CEO OF LADENBURG THALMANN ASSET MANAGEMENT "It would be setting a very unfortunate precedent. You don't want American presidents dictating who runs companies, but certainly his opinion has merit and weight. The board of Intel will have to determine if that's something they would consider in their evaluation." "But this CEO is fairly new. So on one hand, I don't think the U.S. president has the ability to do that. I'm not sure that that's a good idea for any political official." "But certainly, when you look at where the company stands today, it hasn't benefited greatly over the last few years. And I think it's more than just a CEO issue here. It's the company's need for real, radical change." Sign in to access your portfolio
