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Amazon Goes to War
The US e-commerce titan is implementing a sharp reduction in charges for merchants selling cheaper clothing items — fees for products priced below $15 will be cut to 5%, while fees on items priced below $20 will be cut to 10%. Bloomberg reads this as a sign that Amazon [AMZN] is moving towards a price war with fast fashion upstart Shein. Meanwhile, CNBC reported US lawmakers are calling for increased scrutiny of Shein ahead of its IPO next year.
Japanese Automakers Back Renault’s Ampere
Heralding a new phase in their longstanding alliance, Nissan [NSANY] and Mitsubishi [MSBHF] confirmed Wednesday they are to invest in Renault’s [RNO:PA] electric vehicle (EV) unit Ampere, with a view to developing EVs for the European market. Nissan is to invest up to €600m and Mitsubishi €200m. Ampere is set for public listing next year, with a targeted valuation of up to €10bn.
Nio to Shed Battery Unit
Nio [NIO] is to spin off its battery manufacturing business, Reuters reported. This comes after Nio reported a wider-than-expected loss in its quarterly earnings, prompting CEO William Li to say that the firm will “optimize our organization, reduce costs and enhance efficiency”. Li also said that Nio will continue in-house development of batteries, but outsource production. The firm, which has yet to turn a profit, cut 10% of its workforce in November.
YG Up 29% on Blackpink Contract Renewal
K-pop agency YG Entertainment [122870:KQ] saw its share price pop by up to 29%, after it announced it had renewed exclusive group contracts with all four members of international sensation Blackpink. This announcement marks the end of a saga that has been rolling on for some time, during which period the YG share price has dipped at any sign that renewals were at risk. The terms of the new contracts have not yet been specified.
Hydrogen Stocks Drop on Leak
A draft of US Treasury Department rules for hydrogen tax credits was leaked earlier this week, prompting warnings that it could stymie the fledgling industry. Bloomberg reported that the rules include measures would require hydrogen production operations to be powered by clean power projects built within the last three years to qualify for a $3/kg credit. Plug Power [PLUG] closed Tuesday down 11.6%, while FuelCell Energy [FCEL] dropped by 7.9%.
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