The Rising Influence of Rising Affluence

[rwwine]

Wyoming, not Wisconsin.

[gfp927z]

>>> Billions of Rare and Valuable Materials Discovered in Wisconsin Could Make U.S. the Leading Producer of Rare Earth Materials


Savvy Dime

2-15-24


https://www.msn.com/en-us/money/markets/billions-of-rare-and-valuable-materials-discovered-in-wisconsin-could-make-u-s-the-leading-producer-of-rare-earth-materials/ss-BB1ikBmA?ocid=BingHp01&cvid=3e32749d12754a5f91b8eec6fd7f5159&ei=32#image=1


In an exciting development, the United States might be on its way to exceeding global leader China as the top extractor of rare minerals. A recent discovery of a huge cache of minerals has the potential to upset the world economy in a big way.

Rare earth minerals are essential to daily life in the modern world, making devices like computers, smartphones, and hybrid cars possible.

What Was Discovered?

A company called American Rare Earths Inc. recently announced the discovery of a huge cache of rare minerals that is estimated to be more than 2.57 billion tons.

The discovery is reported to be in an area in Wyoming where the company has holdings of over 6,320 acres of land and 367 mining claims.

What Are Rare Earth Minerals?

"Rare earth mineral" is the name for 17 metallic elements on the periodic table. Their name doesn’t come from the fact that they are scarce, but from the history of how difficult they were to find.

Although they are abundant on the earth, they are spread so thin that people need to process tons of ore just to find traces of them.

Why Are These Minerals So Sought After?

Rare earth minerals have unique properties that give them specific applications for developing technology and medical use. The minerals tend to have conductive and magnetic properties that can enhance other elements when combined in a mixture or alloy.

Some are also essential for many forms of energy generation like nuclear, solar, wind, and oil refining. The International Energy Agency speculates that the demand for these minerals is expected to increase between three and seven times by 2040.

China’s Industry Dominance

The nation of China accounts for nearly 95 percent of the earth’s rare mineral processing, and the United States currently imports more than 74 percent of its own supply of essential minerals from it. China also produces nearly 60 percent of the world's supply of these minerals.

In the past, China has used this position to threaten to withhold exports as a political tool against the United States and other countries.

China’s Ban on Rare Earth Processing Technology

In December of 2023, China surprised the world by announcing a ban on rare earth extraction technology. (via Reuters) It is thought that the motivation for this move is to cripple the United States since they would have to start building up their own technology to process the minerals they previously relied on China for.

The move came on the heels of news that China’s economy is struggling under the weight of recent world events like the pandemic.

The Race Is On

While China intended its latest efforts to control prices and secure its position in the world, a backfire may be possible. China’s ban will definitely hurt countries in the short term. However, as these countries build their own technologies in the coming years, they will invariably break China’s dominance over the industry.

Now, just two months later, the United States has discovered its own supply of rare earth minerals that will boost its ability to compete.

Previous Drilling by American Rare Earths

This is not the first time that American Rare Earths has found caches of rare earth minerals, but it is certainly the largest by far. Their first drilling attempt in 2023 found 1.32 million tons.

The second drilling attempt found 64 percent more minerals, which surprised the CEO of the company. The increased discovery of metals in the subsequent drilling is a good sign that there is huge potential for the mining site.

Just Scratching the Surface

Don Schwartz, CEO of American Rare Earths, issued a statement on the findings, excited about the future prospects of the company’s project.

‘Typically, you’ll see the resource decrease as infill drilling takes place – instead, we’re seeing the opposite, with only 25 percent of the project being drilled to this point,” he said.

Which Rare Earth Minerals Were Discovered?

Several rare earth minerals were discovered at the mining site in Wheatland, Wyoming. These included minerals like samarium, dysprosium, terbium, praseodymium, and neodymium.

The discovery of neodymium is of particular interest for its application in magnets used in smartphones and computer drives. However, all of the minerals discovered have important applications for industrial and commercial products.

Open Mining Will Likely Be Used

The extraction method that American Rare Earths will use is reportedly open pit mining.

This type of extraction is criticized for its negative environmental impact but is common throughout the world for this type of work. It is also the fastest method for getting these minerals, which allows a company to work at a rate of 20,000 tons of rare earth minerals per day.

Is There a Reason for China to be Worried?

If American Rare Earths continues to discover more rare earth minerals, China may have to reconsider its export strategy. While China has the edge in processing technology at the moment, more companies around the world are making strides to overcome their independence and chip away at their global dominance.

The United States, as well as Australia and Canada, are already several years into a plan to scale up their processing and refining efforts.

<<<


---

[DewDiligence]

...are you thinking positively about getting involved when this happens?

Alas, I'm already involved. 3M was +400% from 2009 to 2018, but it's shockingly -65% since the 2018 high.

I plan to hold both the post-spin 3M and the new shares of Solventus, partly because my cost basis is so low, and partly because I still think 3M is a great company that can trigger a share-price turnaround when the dust settles from the various legal settlements.

Post spin-off I would guess that the dividend will not increase any more and could decrease.

Right. I expect the post-spin 3M to lower the dividend due to the absence of cash flow from the spun-off healthcare business; the combined dividends of the post-spin 3M and the pro rata shares of Solventus will likely equal or exceed the existing 3M dividend.

[birdguy]

Without knowing valuations at this point it is to early to make any decisions on getting involved with the company. However are you thinking positively about getting involved when this happens? Also under consideration would be that the post spin off MMM could look more attractive or I suppose, the current MMM at the relatively high dividend. Post spin off I would guess that the dividend will not increase any more and could decrease.

[DewDiligence]

Musings on 3M’s pending healthcare spinoff:

#msg-173870424
#msg-173870432
#msg-173870470

[DewDiligence]

(CLF)—Opposition to Nippon-X merger gaining steam:

https://www.nytimes.com/2024/02/15/us/politics/nippon-us-steel-biden.html

[DewDiligence]

3M increases dividend for 66th consecutive year:

https://investors.3m.com/news-events/press-releases/detail/1823/3m-board-declares-quarterly-dividend

The quarterly change was only a penny—from $1.50 to $1.51—so it’s clear that the increase is mainly to keep the streak alive.

At the current share price ($91.25), the new annualized payout of $6.04 equates to a dividend yield of 6.6%.

Note: This PR was issued 2/6/24.

[semi_infinite]

Motor Trend article writer basically saying this is not a real issue. The biggest issue remains range and price IMO.

[spongepaul]

Anyone who’s ever driven a white car knows rust spots can come from brake shoes and road grime also.

Stainless steel does not readily corrode, rust, or stain with water as ordinary steel does, but it is not stain-proof, especially with low oxygen, high salinity (salt water), or poor circulation in the environment.

[Mufaso]

The Tesla Cybertruck is rapidly getting a very bad reputation. Likely to be a total bust and drag on Tesla.

According to Tesla's website, the electric truck boasts an "ultra-hard stainless-steel exoskeleton" where every "component is designed for superior strength and endurance, from stainless-steel structural skin to Tesla armor glass."

The monochrome exoskeleton is also designed to reduce dents, damage and long-term corrosion, Tesla said.

https://finance.yahoo.com/news/tesla-cybertruck-owners-claim-80k-030313534.html

Max wrote that he picked up his new Cybertruck in Dublin, California and drove it up to Sacramento in the "pouring rain" on Feb. 1. Upon completing the over 2-hour drive, he claimed that he found a "bunch of tiny orange specks and a few water spots" along the exterior of his brand-new vehicle.

"I picked it up in Dublin yesterday, it was pouring raining, drove it up to Sacramento and there’s a bunch of tiny orange specks and a few water spots," Max said. "The orange dots aren’t huge, they’re very tiny, but they’re apparent. Sure I haven’t washed the car yet but it’s only been two days in the rain."

He said that he was "explicitly" told that the trucks "develop orange rust marks in the rain and that required the vehicle to be buffed out."

"I know I heard the story of never take out your Delorean in the rain, but I just never read anything about rust and Cybertrucks," Max wrote.

The comments on this story are pretty funny and worth a read. Here are some of the best:

"Should have read the owner's manual. It clearly states any water must be immediately removed with a soft, cashmere cloth, followed by a soft lullaby."

"Paint was developed for protection against such a thing, which explains why it is in use on the "majority" of automobiles. "

"The eventual recall solution is to have it painted or have a body wrap."

"Just let it rust. It’ll look apocalyptic"

"this is not real stainless steel, it is Chinese Stainless Steel which means it stains and corrodes"

[DewDiligence]

CLF's operating profit from the now-closed plant was neglible, but CLF needs remain on the good side of the USW (with a potential benefit of nabbing X if the Nippon deal falls through). The 900 employees from the closed tin-plate plant—a big deal for the USW—are the reason CLF lobbied hard for the tariff.

[jbog]

I thought the 900 employees amounted to more than a rounding error.

[n4807g]

Thanks...hadn't seen that announcement. Of course the issue remains getting the required permits so it's very early in the process. Ramaco has a "leg up" on the permitting cycle. They are still evaluating the economics of the project, but they have permits in hand for mining coal and believe the permits will allow the mining of the rare earth deposit on site....we shall see. The Bear Lodge prospect is also interesting, but is years away from economic production. Developing strategic minerals in the USA moves at a glacial pace. By the time most mines are permitted technology may have moved on.... ;)

[n4807g]

BYD plans EV assembly plant in Mexico
https://finance.yahoo.com/news/byd-plans-ev-assembly-plant-220000392.html

4

Reuters
Wed, February 14, 2024 at 5:00 PM EST
In this article:

002594.SZ
+0.90%
Watchlist
Significant Event | 2dyahoo plus badge
Nikkei Says BYD Co Considering Setting Up A Plant In Mexico, Says Head Of Co's Local Unit
BYDDY
-0.32%
TSLA
+5.08%

China's BYD Co Ltd will set up a new electric vehicle (EV) factory in Mexico, Nikkei reported on Wednesday, citing the company's Mexico head, as the EV maker aims to establish an export hub to the United States

.

[Bluewingcap]

There's the breakout in GROY!
Going to need to consolidate these gains around the 200 day MA. Next fundamental catalyst is likely Cote Mine becoming operational and then Q4 2023 earnings.
As royalty revenues ramp the question becomes debt paydown or reinstate the dividend?
They have a very instructive presentation on their website:
GROY Presentation

[DewDiligence]

Wyoming—>potential motherlode of rare-earth minerals:

https://www.wsj.com/articles/wyoming-hits-the-rare-earth-mother-lode-natural-resources-policy-china-mining-8e559cec

The discovery of 2.34 billion metric tons of rare-earth elements near Wheatland, Wyo., signals the beginning of a new era in the competition for the raw materials that power the global economy. If wisely exploited, this find—estimated to be the richest in the world—will give the U.S. an unparalleled economic and geopolitical edge against China and Russia for the foreseeable future.

The lode at Halleck Creek has the potential to make the U.S. the world’s largest processor of the minerals used to make computer chips, smartphones and aircraft engines.

[DewDiligence]

CLF—The tin-plate segment comprises a minuscule portion of CLF’s overall sales and profits, which I what I mean by saying that it is, “tantamount to round-off error.”

Note that CLF is maintaining its 2024 steel-production guidance of 16.5MT.

[DewDiligence]

DE reports FY1Q24* results—reduces FY2024* guidance:

https://s22.q4cdn.com/253594569/files/doc_financials/2024/q1/DE-1Q24-News-Release.pdf

• FY2023* was a peak-cycle year for DE, so FY2024 is a down year, although still the second-best earnings year in the company's history, based on current guidance.

• FY1Q24 product sales (excluding revenue from DE’s finance unit) were $10.5B -24% YoY, but above the consensus figure of $10.3B.

• FY1Q24 GAAP EPS was $6.23, -5% YoY and below the consensus figure of $6.55.

• DE lowered guidance for FY2024 net income to $7.50-7.75 (from the prior range of $7.75-8.25B). Based on 281M diluted shares @1/31/24, DE’s FY2024 net-income guidance equates to FY2024 GAAP EPS of $26.70-27.20. At the midpoint of the range ($26.95), the FY2024 EPS guidance is -22% YoY relative to $34.63 in FY2023.

At the current share price (~$367 as I’m typing), the FY2024 EPS guidance equates to a FY2024 P/E ratio of 13.6x.


CC slides:
https://s22.q4cdn.com/253594569/files/doc_financials/2024/q1/DE-1Q24-Earnings-Call-Presentation.pdf

*DE’s fiscal years end on Oct 31; FY1Q24 spanned the period from 11/1/23 to 1/31/24.

[Mufaso]

The stainless-steel (unpainted) exterior is going to cause headaches for owners, IMO.

Yes I agree - Stainless steel is not rustproof or "pitproof". Chlorine in particular can eat it away. Drive it on roads that have been salted and you are asking for trouble over the long term IMO. Then there are other issues like rail dust, grease, scratches and that really nasty thing called rain See this Motortrend analysis:

https://www.motortrend.com/news/tesla-cybertruck-rust-reports-analysis/

[jbog]

This decision is tantamount to round-off error for CLF.

Cleveland-Cliffs announced that it will be indefinitely idling its tinplate production plant located in Weirton, West Virginia in April 2024. The need to idle the Weirton plant is a direct result of the unanimous decision issued by all four members of the International Trade Commission negating the implementation of anti-dumping and countervailing duties on tin mill products calculated by the Department of Commerce. A WARN notice is being issued today to approximately 900 impacted employees. These employees will be provided relocation opportunities to work at other Cliffs' facilities and/or severance packages. In January 2023, Cleveland-Cliffs and co-petitioners the United Steelworkers filed antidumping and countervailing duty petitions related to unfairly traded tin and chromium coated sheet steel products. After finding evidence of dumping and subsidization, on January 5, 2024, the Department of Commerce announced duties on four countries, including Canada, China, Germany and South Korea. However, on February 6, 2024, the ITC unanimously rejected these tariffs. Lourenco Goncalves, Cleveland-Cliffs' Chairman, President and CEO, stated, "We worked very closely with our partners at the USW on this solution to save Weirton, and together fought tirelessly for its survival. In what was our final effort to maintain tinplate production here in America, we proved that we are forced to operate on an uneven playing field, and that the deck was stacked in favor of the importers. Despite the Department of Commerce finding evidence of dumping and subsidization from respondent countries, the ITC shockingly ruled against imposition of tariffs, keeping the uneven playing field in place and making it impossible for us to viably produce tinplate. We have been upfront and open with union leadership throughout this process and our partnership with the USW remains unbreakable."

Read more at:
https://thefly.com/n.php?id=3863854

[fung_derf]

I'd say you had an overreaction to an opinion and point I was trying to make. FWIW, I left that board, not because people were opinionated, but because it was really a yankees board in drag. Even this October during the WS, all they wanted to talk about is the yankees.....who didn't sniff the playoffs.

DewDiligence

Member Level
Re: fung_derf post# 123474

Tuesday, October 04, 2011 2:36:09 PM

Post#
123475
of 209113
Your argument is really dumb. If a single were really more productive than a HR, a batter could simply stop at first base after a HR, which is not against the rules.

Don’t bother to reply…I’m putting you on Ignore.

[Bluewingcap]

At least they are dealing with the actual set of facts!!!

[DewDiligence]

Welcome to the board. I don't remember having a row with you about baseball, but I do recall that the people on that board were quite opinionated, LOL.

[fung_derf]

I see that now, as I've gone back to the beginning and started reading. Not sure it is quite what I was hoping for though.
As for you, I remember you putting me on ignore back in 2011 for my thoughts on baseball. I also see you've left that board altogether. Apparently, I wasn't the only problem with it.
I guess I've gotten paroled from your jail at some point.
I'll just read here for a while to see if this meets my criteria.

[DewDiligence]

The board has been around for 15 years, although it was renamed in 2021.

[fung_derf]

Interesting idea for a board. I'll be curious to see where it goes.

[DewDiligence]

SHEL’s 2040 LNG forecast shows how two publications can slant the commentary in opposite directions. First, here’s the WSJ’s take:

https://www.wsj.com/finance/commodities-futures/shell-sees-global-lng-demand-up-at-least-50-by-2040-f63aa45d

Shell said it expects global demand for liquefied natural gas to grow beyond 2040, driven by industrial demand in China and economic development in South Asia and Southeast Asia.

The British oil-and-gas major said Wednesday it estimates the global demand for the gas to rise by more than 50% by 2040 as the Chinese industrial sector pivots from coal to gas, and South Asian and Southeast Asian countries use more LNG to support their economic growth.

Emphasis added. Now, here’s Bloomberg’s take on the same story:

https://finance.yahoo.com/news/shell-lowers-lng-growth-outlook-084503930.html

Shell Plc said demand for liquefied natural gas by 2040 will be slightly lower than previously forecast as the world prepares for life beyond fossil fuels.

LOL

[jbog]

This shows how they depend on Big Brother rather than true competition to attain their goals. Now that HRC has fallen into the low $800's let see how much steel they'll sell at their last price demand. None.

[DewDiligence]

This decision is tantamount to round-off error for CLF.

[jbog]

A Minor Miracle on Steel Tariffs
Trade judges reject new duties on tin-mill imports used in cans.
By
The Editorial Board

Feb. 7, 2024 6:32 pm ET

Prices for canned food like most other things have shot up, but chicken-soup eaters received a welcome reprieve on Tuesday when the U.S. International Trade Commission (ITC) unanimously rejected tariffs on tin-mill steel. For a change, consumers have prevailed over special interests in Washington.

Cleveland-Cliffs and the United Steelworkers (USW) last January petitioned the Commerce Department and ITC to impose duties ranging between 13.5% and 294.3% on imported tin-mill steel from eight countries, most of which are U.S. allies. They accused foreign steel manufacturers of “dumping” steel that is used in canned goods on the U.S. market.

By dumping, they apparently mean selling steel that American can manufacturers need and which domestic steel makers don’t produce. Cleveland-Cliffs and U.S. Steel are the only significant domestic manufacturers of tin-mill steel, but they don’t produce the high-grade tin-mill that can and food manufacturers require. Hence, about 60% of tin-mill for cans is imported.

Cleveland-Cliffs’s tariffs would have rendered U.S. can and food manufacturers less competitive globally. One study estimated they would kill 600 jobs for each one they create. The victims would be U.S. consumers and manufacturing workers across the country. But as usual when it comes to trade, politicians prioritized parochial interests over the broader public welfare.

Members of Congress from Indiana, West Virginia and Ohio where Cleveland-Cliffs has factories lobbied for the tariffs. The Biden Commerce Department listened and in January proposed tariffs on South Korea (2.69%), Canada (5.27%), Germany (6.88%), and China (122.52%). While lower than Cleveland-Cliffs demanded, the tariffs still would have raised prices for canned goods.

Yet in a minor political miracle, the ITC this week vetoed the tariffs on a 4-0 vote, ruling that the “U.S. industry is not materially injured or threatened with material injury by reason of imports of tin mill products.” That sensible judgment angered Ohio Sen. Sherrod Brown, who declared that “this ruling is just the latest evidence that our trade enforcement tools are not strong enough.”

https://www.wsj.com/articles/tin-mill-steel-tariffs-rejected-international-trade-commission-cleveland-cliffs-b40ff867?mod=hp_opin_pos_3#cxrecs_s

[DewDiligence]

More on the same topic:

https://www.axios.com/2024/02/06/china-biotech-house-field-hearing

[DewDiligence]

IMAB wants out of China—>restructures to_become_US_biotech_company:

https://ir.i-mabbiopharma.com/news-releases/news-release-details/i-mab-signs-agreement-divest-its-assets-and-business-operations

See #msg-173726497 for related info.

[semi_infinite]

PLTR - AIP starting to show up in commercial growth metrics and starting to impact bottom lines. I sold $22 CC's

[n4807g]

Great video....starting at 3:05 is an amazing crash test. I wouldn't have believed it was possible. The Seal looks like a great EV. It's to bad BYD won't be bringing their EV's to the USA, they would add a great option to the current line-up. But I do understand why politicians will try to prevent BYD from marketing in the USA.

[flatlander_60048]

The ABAXX YouTube link was posted on Feb 1 on Josh Crumbs Twitter feed. Here is a more direct link.

FL

[flatlander_60048]

Here is a link to a quick primer on ABAXX.
https://twitter.com/JoshCrumb?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor
FL

[flatlander_60048]

ABAXX Revisited
I almost hate to post here, for fear of sounding like a penny stock pumper. I posted a while ago about ABAXX opening a new commodities exchange based in Singapore. At the time they were a long way from securing the necessary approvals, so it was easy to discount the post as a pipe dream. ABAXX has now received the necessary approvals and intends to start trading Nickel Sulphate and LNG this quarter. Lithium, precious metals and carbon credits will follow. The listing will move to the new CBOE exchange in the near future after they start generating revenue. Currently they trade only on the OTC and the Canadian Venture exchange. I think if you dig into what the company is about or listen to the conference call, you will see that that ABAXX is seeking to reshape the commodity trading markets and therefore the company extremely applicable to the content tracked on this board.

https://finance.yahoo.com/news/abaxx-provides-q1-corporate-120000094.html

FL

[DewDiligence]

CAT reports 4Q23 results—completing_record_year_for sales_and_earnings:

PR:
https://www.caterpillar.com/content/dam/caterpillarDotCom/releases/4q23/4q23-caterpillar-inc-financial-results.pdf

CC slides:
https://s25.q4cdn.com/358376879/files/doc_financials/2023/q4/4Q-2023-Analyst-Slide-Deck-FINAL-2.pdf

4Q23 sales were $17.1B, +3% YoY.

4Q23 non-GAAP EPS was $5.23, up from $3.86 in 4Q22. 4Q23 GAAP EPS was $5.28, up from $2.49 in 4Q22.

(Excluding restructuring costs from non-GAAP EPS is a policy that I take issue with insofar as a multinational, multifaceted business such as CAT’s has restructuring costs continually. In 4Q23, however, non-GAAP EPS came in slightly lower than GAAP EPS due to the exclusion from non-GAAP EPS of one-time tax and OPEB benefits.)

CAT does not provide specific guidance for sales or EPS, but it expects 2024 sales to be similar to 2023 (see slide #19 at link below).

The stock, +5% in the PM session, is at an all-time high.

[DewDiligence]

CVX 4Q23 results:

https://finance.yahoo.com/news/chevron-reports-fourth-quarter-2023-111500530.html

The 8% increase in the dividend to an annualized $6.52, which is now taking effect, was pre-announced in Oct 2023 (#msg-173075913).

[DewDiligence]

That statement in non-binding, and I wouldn't take it seriously.

[jbog]

Cleveland-Cliffs CEO tells Bloomberg U.S. Steel offer 'no longer exists' 15:25 X, CLF, NPSCY Cleveland-Cliffs (CLF) CEO Lourenco Goncalves, who has been critical of United States Steel's (X) decision to sell itself to a Japanese steelmaker, said his company's prior $54 per share offer is now off the table and won't be a backup if Nippon Steel's $55 per share cash offer that was accepted by the American steelmaker falls through. "That transaction is no longer available, it's no longer a backstop for their failure. If they can't close - I don't know where they are at this point - that offer is gone, that offer no longer exists," Goncalves is quoted by Bloomberg as having said in a Thursday interview.

Read more at:
https://thefly.com/n.php?id=3855229

[DewDiligence]

SHEL boosts dividend again—authorizes $3.5B buyback in_next_3mo:

https://finance.yahoo.com/news/shell-announces-commencement-share-buyback-070300226.html

https://finance.yahoo.com/news/shell-plc-fourth-quarter-2023-070200406.html

This is SHEL’s second dividend boost in the past 12 months. The new annualized payout is $2.752/ADS (up from the prior annualized rate of $2.648 in effect during 2H23). At the current share price (~$64), the new annualized payout is a yield of 4.1%.

[DewDiligence]

CLF director bought $500K of stock on the open market today:

https://www.sec.gov/Archives/edgar/data/764065/000076406524000035/xslF345X05/wk-form4_1706806823.xml

[n4807g]

Interesting read......Billionaire Ken Griffin explains why it was ‘heartbreaking’ to see BYD leapfrog Tesla in the EV race: ‘We’ve got a real competitor in China’
https://finance.yahoo.com/news/billionaire-ken-griffin-explains-why-203340800.html

[Latoria]

ABT's performance in 4Q23 reflects a mix of strengths and challenges, emphasizing the need for strategic adaptation and continued innovation to sustain growth and competitiveness in the healthcare industry.

[Latoria]

Given this precedent, it's reasonable to expect that electric vehicles (EVs) will also gain traction in the region. As EV technology continues to evolve and become more accessible, we may indeed see a similar pattern of adoption in SoCal.

[Latoria]

GOOG
-6.94%
MSFT
-1.58%

Despite surpassing earnings expectations, shares of Microsoft (MSFT) and Alphabet (GOOG, GOOGL) are experiencing volatility in the market. Investors seem disappointed with the companies' AI-driven advertising revenues.

Yahoo Finance’s Rachelle Akuffo and Akiko Fujita delve into analyst reports and explore the implications for both tech giants.

For more in-depth analysis and the latest market updates, you can watch the full episode of Yahoo Finance Live by clicking here.

[Latoria]

SBUX
-0.61%

Following the publication of its first-quarter earnings report, Starbucks (SBUX) witnessed a slight dip in its share prices. The earnings report fell short of expectations for same-store sales in China, with sales at Chinese locations increasing by 10%, lower than the anticipated 16% growth predicted by analysts.

Moreover, there was a 9% year-over-year decrease in the average ticket size in China. Starbucks attributed this decline to changing consumer behavior in the Chinese market, where customers have become increasingly price-conscious due to economic downturns.

[Latoria]

The potential for an EV trade war is indeed a concerning prospect, especially given the significant strides made by Chinese companies like BYD in the electric vehicle market. While Tesla has been a dominant player, the emergence of competitors like BYD poses a serious challenge, particularly if trade tariffs come into play.

The question of who is better positioned, the EU/USA or China, is complex and multifaceted. China has certainly invested heavily in building its battery and supply chain networks, giving it a competitive advantage in the EV industry. Meanwhile, the EU and USA have been slower to develop a domestic battery supply chain, potentially leaving them at a disadvantage.

Trade tariffs could further complicate the situation, potentially hindering the development of a domestic battery supply chain and forcing companies like BYD to seek markets elsewhere. This could isolate and marginalize the domestic EV industry in Europe and the USA.

As for Tesla and other car makers in the EU and USA, the threat of retaliatory tariffs from China looms large. Any escalation in trade tensions could have significant implications for these companies, potentially impacting their access to crucial markets and resources.

[DewDiligence]

ABT launches adult-nutrition product_to_maintain muscle mass_for_people_on_weight-loss_drugs:

https://finance.yahoo.com/news/abbott-launches-protality-brand-support-140000191.html

Abbott, a global leader in science-based nutrition, announced today the launch of its new PROTALITY brand. The high-protein nutrition shake is the first product in this line to support the growing number of adults interested in pursuing weight loss while maintaining muscle mass and good nutrition.

…To preserve muscle mass during weight loss, research shows adults may need at least 50 percent more protein than the Recommended Dietary Allowance (RDA). High protein consumption can also support weight loss maintenance.

Citations for the claims in the above paragraph are in the footnotes of ABT’s press release.

Nutrition products (adult + infant) comprised 20% of ABT’s overall 4Q23 sales (#msg-173691054).