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EU carmakers ‘days away’ from shutting production due to chip shortagesLisa O\u2019Carroll<\/p>\n
Car manufacturers in the EU are \u201cdays away\u201d from closing production lines due to dire shortages of chips, after China banned exports from Nexperia following the factory\u2019s takeover by the Dutch government two weeks ago, the industry has said.<\/p>\n
The crisis warning and call on European leaders to strike a deal with China immediately comes just a day before Donald Trump and Xi Jinping are expected to seal a trade deal, easing the US\u2019s chip and rare earth supply chain.<\/p>\n
Caught in the cross fire between the two superpowers, the EU will hold urgent talks with a senior delegation from China in Brussels on Friday.<\/p>\n
But the car industry warns it may be too late to avert production line closures.<\/p>\n
Sigrid de Vries, director general of the European Automobile Manufacturers\u2019 Association, said:<\/p>\n
Assembly line stoppages might only be days away. We urge all involved to redouble their efforts to find a diplomatic way out of this critical situation.<\/p>\n
The ACEA said the industry \u201cis currently working through reserve stocks but supplies are rapidly dwindling. From a survey of our members this week, some are already expecting imminent assembly line stoppages.\u201d<\/p>\n
While alternative suppliers exit, it could take \u201cmonths to build up additional capacity\u201d it said and the \u201cindustry does not have that long before the worst effects of this shortage are felt.\u201d<\/p>\n
While the political dispute that has led to the prohibition of Nexperia chip exports from China remains unresolved, the situation becomes more critical daily for global automotive manufacturing.<\/p>\n
The resulting shortage of supply of the type of simple chips used in the control car electric system including magnets for opening windows and car boots.<\/p>\n
De Vries said:<\/p>\n
We know that all parties to this dispute are working very hard to find a diplomatic solution. At the same time, our members are telling us that part supplies are already being stopped due to the shortage.<\/p>\n
Share<\/a>Nvidia on track to become first $5tn company at Wall Street open<\/p>\n The US chipmaker Nvidia is on track to become the first $5tn company when Wall Street opens later, after receiving a boost from Donald Trump remarks<\/a> and amid an AI boom.<\/p>\n The shares rose by 3.9% in premarket trading, and if this is sustained, Nvidia will top a $5tn market cap at the official open on Wall Street.<\/p>\n It has only been four months since the company reached the $4tn mark, and the rally has been boosted by chief executive Jensen Huang\u2019s spree of deals. He has forged new agreements to supply chips to companies including Finland\u2019s Nokia and South Korea\u2019s Samsung Electronics Co. and Hyundai Motor Group.<\/p>\n Share<\/a>UK mortgage approvals highest since December<\/p>\n British lenders approved more mortgages in September than any month so far in 2025, according to Bank of England data.<\/p>\n Mortgage approvals for home purchases totalled 65,944, the highest figure since December 2024, monthly Bank of England figures showed. This was higher than economists had expected.<\/p>\n The increase comes after other data, from lender surveys, indicated a slowdown in the housing market, with buyers wary ahead of the late budget on 26 November.<\/p>\n Rachel Reeves, the chancellor, is expected to raise taxes in her budget to balance the books, with higher levies on property purchases or home ownership among mooted measures.<\/p>\n The Bank of England data also showed net consumer borrowing rose by nearly \u00a31.5bn last month, in line with City forecasts.<\/p>\n While this was less than August\u2019s \u00a31.7bn rise, consumer credit grew by 7.3% from September 2024, the fastest annual pace of growth since October 2024.<\/p>\n Other official data published last week showed retail sales unexpectedly rose by 0.5% in September.<\/p>\n Alex Kerr, UK economist at the consultancy Capital Economics, said:<\/p>\n Overall these figures are consistent with our view that consumer spending growth will strengthen over the coming quarters. 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It fell by 0.4% against the euro and the dollar earlier, to \u20ac1.13 and $1.32, following steep falls on Tuesday.<\/p>\n This comes after it emerged that the Office for Budget Responsibility<\/a> (OBR) is planning to cut its trend productivity growth prediction by 0.3 percentage points, after a downgrade of the UK\u2019s economic momentum since the 2008 financial crash.<\/p>\n This means the UK chancellor will have to account for a bigger-than-expected \u00a320bn hit to the UK public finances in next month\u2019s budget, increasing the likelihood that she will breach a key Labour\u2019s manifesto pledge not to raise income tax.<\/p>\n Each percentage point downgrade would translate into \u00a37bn of extra borrowing.<\/p>\n Share<\/a>GSK boss says UK will struggle to be a ‘life sciences superpower’ without pricing reform<\/p>\n As ministers are drawing up proposals to increase the amount the NHS spends on new medicines, potentially by up to 25%<\/a>, with an announcement expected as soon as the end of this week, GSK boss Emma Walmsley said she was \u201chopeful and ambitious\u201d that the standoff with the pharma industry can be resolved.<\/p>\n Without pricing reform, the UK will struggle to be a life sciences superpower, she warned. She told reporters:<\/p>\n We are great supporters of the life sciences industrial strategy in the UK. And I\u2019ve been very consistent on our view that it\u2019s key to execute against that in terms of the opportunity for clinical trials and the opportunity for having translational facilities, all of the work that can be done with the data, but it is absolutely key that we have a competitive, commercial environment that recognises the value of innovation.<\/p>\n Obviously we\u2019re engaging, watching, contributing as we can. And, I would say: hopeful and ambitious.<\/p>\n She added:<\/p>\n What everyone is putting the energy into, hopefully resolving, is how we make sure this country creates the right commercial environment. And without that, I think it\u2019s going to be very difficult to be able to be a leading life sciences superpower\u2026 and without that, we are not going to secure something else we all want, which is patient access to innovation. You have to remember that the cost of drugs as a share of the total cost of health care is less than 10% in this country.<\/p>\n Donald Trump has put pressure on pharmaceutical companies to lower their drug prices in the US and sell directly to American patients \u2013 or face trade tariffs. (Historically, drug prices in the US have been much higher elsewhere, partly because of a complicated system involving middlemen.) In response, Pfizer and AstraZeneca have done deals with the US government in recent weeks.<\/p>\n Asked whether GSK is going to do a pricing deal with the Trump administration, Walmsley said GSK is \u201cengaging very constructively\u201d with the US government.<\/p>\n We absolutely agree we should be working towards constructive reform in the US system that we want to have affordable, accessible drugs in a sustainable way.<\/p>\n GSK is investing $30bn in US manufacturing and research, but has also affirmed its commitment to the UK. Its bigger UK rival AstraZeneca has paused a planned \u00a3200m investment<\/a> at a Cambridge research site.<\/p>\n Share<\/a><\/p>\n Updated at\u00a006.26 EDT<\/p>\n GSK upgrades 2025 sales and profit forecasts as CEO Emma Walmsley bows out<\/p>\n As GSK\u2019s chief executive Emma Walmsley prepares to bow out after eight years<\/a>, the drugmaker raised its 2025 sales and profit forecasts driven by double-digit growth in respiratory, inflammation & immunology, oncology and HIV.<\/p>\n The company reported a pretax profit of \u00a32.5bn for the third quarter, compared with \u00a364m a year earlier which reflected its Zantac settlement.<\/p>\n The GSK share price jumped by nearly 3% on the news, to its highest level since mid-2024.<\/p>\n Vaccine sales rose by 2% to 2.7bn in the quarter to 30 September, beating analysts\u2019 forecasts. Growth was driven mainly by sales outside the US, where GSK reported a 15% drop in sales of its shingles vaccine, Shingrix.<\/p>\n US health secretary Robert F. Kennedy Jr, an anti-vaxxer, has slashed funding for research and ousted the head of the Centers for Disease Control and Prevention.<\/p>\n Speaking to reporters, Walmsley said:<\/p>\n We remain very cautious about the environment in the US, although we did reassert today, we expect to be at the top end of our current vaccines guidance, and that\u2019s really because we\u2019re seeing great momentum ex US, particularly in Europe this quarter.<\/p>\n GSK CEO Emma Walmsley attends a press conference by US President Donald Trump and Prime Minister Sir Keir Starmer at Chequers, near Aylesbury in Buckinghamshire, on 18 September. Photograph: Leon Neal\/PAShare<\/a><\/p>\n Updated at\u00a006.35 EDT<\/p>\n Trump settles for golden gifts instead of investment deal in South Korea<\/p>\n Donald Trump wants South Korea to invest $350bn in the American economy \u2013 but so far he has had to settle for a gold medal and a crown.<\/p>\n Both were gifts from the country\u2019s president, Lee Jae Myung, who dialled up the flattery while Washington and Seoul struggled to finalise details on financial promises during the last stop of Trump\u2019s Asia trip, according to Associated Press and Reuters.<\/p>\n The US president was awarded the \u201cGrand Order of Mugunghwa\u201d, the country\u2019s highest decoration.<\/p>\n On the lunch menu were \u201cmini beef patties with ketchup\u201d, a \u201cKorean Platter of Sincerity\u201d featuring US beef and local rice and soybean paste, and grilled fish with a glaze of ketchup and gochujang, a red chilli paste.<\/p>\n The lunch was capped by a \u201cPeacemaker\u2019s Dessert\u201d consisting of a brownie adorned with gold.<\/p>\n A band played Trump\u2019s campaign anthem of \u201cY.M.C.A.\u201d when he stepped off Air Force One. Lee told him that \u201cyou are indeed making America great again.\u201d<\/p>\n Trump has a soft spot for pomp and pageantry, and he seemed satisfied despite the lack of a trade deal. He was particularly impressed by a choreographed display of colourful flags as he walked along the red carpet.<\/p>\n The Beast, the US President\u2019s official car, is cleaned as Donald Trump meets with South Korean President Lee Jae Myung on the sidelines of the Asia-Pacific Economic Cooperation (APEC) leaders\u2019 summit in Gyeongju, South Korea, October 29. Photograph: Evelyn Hockstein\/Reuters<\/p>\n The US president told Lee during their meeting:<\/p>\n That was some spectacle, and some beautiful scene. It was so perfect, so flawlessly done.<\/p>\n Earlier in the day, Trump even softened his rhetoric on international trade. \u201cThe best deals are deals that work for everybody,\u201d he said during a business forum.<\/p>\n Share<\/a><\/p>\n Updated at\u00a005.37 EDT<\/p>\n Aston Martin cuts \u00a3300m from investment plans after Trump tariff impact Aston Martin has slashed \u00a3300m from its investment plans after the British sportscar maker reported a bigger than expected loss in the third quarter because of Donald Trump<\/a>\u2019s tariffs<\/a> and weak demand in China.<\/p>\n The carmaker said on Wednesday that losses before tax were \u00a3112m in the third quarter of 2025, a ninefold increase from \u00a312m a year earlier.<\/p>\n The brand, whose products are best known for featuring in the James Bond film franchise, has been buffeted by global pressures during a five-year turnaround effort that has been marked by perennial heavy losses.<\/p>\n Aston Martin had already warned earlier this month that this year\u2019s profits would be lower than previously expected<\/a> because of a decline in sales. It sold 1,430 cars to retailers during the third quarter of 2025, down 13% compared with the period last year.<\/p>\n A Vantage car, a luxury sports car, during its launch in New Delhi, India in August 2024. Photograph: Priyanshu Singh\/Reuters<\/p>\n Revenues over the first nine months of 2025 were down by 26% to \u00a3740m compared with almost \u00a31bn a year earlier.<\/p>\n Adrian Hallmark, Aston Martin\u2019s chief executive, said:<\/p>\n This year has been marked by significant macroeconomic headwinds, particularly the sustained impact of US tariffs and weak demand in China.<\/p>\n Work is under way to review our future product cycle plan with the aim of optimising costs and capital investment while continuing to deliver innovative, class-leading products to meet customer demands and regulatory requirements.<\/p>\n The manufacturer, which produces its vehicles in Warwickshire and south Wales, has already delayed the launch of its first electric model<\/a>, and it cut 5% of its workforce in February. It said it would detail further changes early next year.<\/p>\n Aston delivered the first of its Valhalla supercars this month, which it hopes will improve the financial performance if it can deliver 150 in the last three months of the year. The company will make 999 of the mid-engined, plug-in hybrid cars, priced at \u00a3850,000 \u2013 or more than $1m a vehicle. Aston Martin said that more than half of the cars were already ordered by customers.<\/p>\n Share<\/a><\/p>\n Updated at\u00a005.08 EDT<\/p>\n Nvidia shares jump after Trump remarks<\/p>\n Shares in Nvidia jumped after Donld Trump said he will discuss the US chipmaker\u2019s Blackwell artificial intelligence processors with Chinese leader Xi Jingping, calling the chip \u201csuper duper\u201d. He said the company\u2019s chief executive Jensen Huang recently brought a version of it to the Oval Office.<\/p>\n Trump already said a few months ago that he would consider allowing Nvidia to export a downgraded version of its Blackwell processor to China. This would be a major win for Nvidia and a significant concession to Beijing \u2013 and upend Washington\u2019s campaign to curtail China\u2019s prowess in AI.<\/p>\n Nvidia\u2019s shares extended gains to 8.5% in Asian trading on the alternative platform Blue Ocean, Bloomberg News reported. They are currently up by 3.3% in pre-market trading ahead of the Wall Street open.<\/p>\n In August, Nvidia<\/a> and fellow chipmaker AMD agreed to give the US government 15% of their revenue from advanced chips<\/a> sold to China in return for export licences to the key market.<\/p>\n Share<\/a>Trump lands in South Korea amid deadlocked trade talks over $350bn deal on tariffs<\/p>\n Donald Trump landed in South Korea on Wednesday to meet president Lee Jae Myung, with deadlocked talks over a $350bn trade deal between the two countries threatening to cast a shadow over the event.<\/p>\n After arriving on a flight from Tokyo, where he signed a rare earths deal with Japan\u2019s new prime minister<\/a>, Sanae Takaichi, the US president addressed a summit of CEOs ahead of a meeting with Lee in the town of Gyeongju, a historical city playing host to the annual Apec summit.<\/p>\n South Korea says it will award Trump its most prestigious medal for his efforts to stabilise peace on the Korean Peninsula before the meeting.<\/p>\n Lee\u2019s office said Trump will be the first US president to receive the Grand Order of Mugunghwa, South Korea\u2019s highest order, in recognition of his past diplomatic efforts and to emphasise his role as a \u201cpeacemaker\u201d between the rival Koreas.<\/p>\n Seoul also plans to present Trump with a replica of a royal gold crown from the ancient Silla Kingdom, whose capital was Gyeongju.<\/p>\n At the top of the agenda for the talks with Lee will be the unresolved trade agreement between the US and South Korea. The two allies announced a deal in August under which Seoul would avoid the worst of the tariffs by agreeing to pump $350bn of new investments into the US.<\/p>\n However, Korean officials say a direct cash injection could destabilise their economy, and they would rather do loans and loan guarantees instead. Officials from both sides have said Trump and Lee are unlikely to finalise an agreement.<\/p>\n For now, South Korea is stuck with a 25% tariff on vehicles, putting manufacturers such as Hyundai and Kia at a disadvantage against Japanese and European competitors, which face a 15% levy.<\/p>\n Trump has also pressed allies including South Korea to pay more for defence, and the two are likely to discuss efforts to engage North Korea, which announced early on Wednesday that it had test-fired a nuclear-capable cruise missile the previous day.<\/p>\n Share<\/a>Introduction: Trump says he will cut fentanyl tariff on Chinese goods and expects \u2018good deal\u2019 with Xi<\/p>\n Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.<\/p>\n Donald Trump has said he will cut fentanyl-linked US tariffs imposed on China earlier this year, as he arrived in South Korea, a day before his meeting with Chinese president Xi Jinping in the country.<\/p>\n Speaking on Air Force One on Wednesday, the US president said he would reduce the 20% fentanyl levy he imposed in the spring as a way to put pressure on Beijing to curb the export of precursor chemicals used to make the synthetic opioid, which has fuelled the opioid crisis in the US. Trump told reporters:<\/p>\n I expect to be lowering that because I believe they can help us with the fentanyl situation.<\/p>\n We have to get rid of it.<\/p>\n US and Chinese officials have drawn up the framework for a trade deal for Trump and Xi to sign when they meet in the south-eastern city of Gyeongju tomorrow.<\/p>\n \u201cI think we\u2019re going to have a deal,\u201d the US president said, adding that it will be a \u201cgreat deal for both\u201d nations, speaking at a meeting of corporate leaders at the Asia-Pacific Economic Cooperation summit. He told the summit:<\/p>\n The world is watching, and I think we\u2019ll have something that\u2019s very exciting for everybody.<\/p>\n
But the risk is that tax rises on households in the budget dampen activity next year.<\/p>\n![\"Jasper](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/10\/Jasper_Jolly.png\")
Jasper Jolly<\/p>\n