▸ Russia is slashing oil production by about 5% as Western sanctions bite.
Russia will cut crude oil production by half a million barrels per day starting in March, a little over two months after the world's major economies imposed a price cap on the country's seaborne exports.
"We will not sell oil to those who directly or indirectly adhere to the principles of the price ceiling," Russian Deputy Prime Minister Alexander Novak said in a statement. "In relation to this, Russia will voluntarily reduce production by 500,000 barrels per day in March. This will contribute to the restoration of market relations."
Futures prices for Brent crude, the global benchmark, jumped 2.7% on Friday to $86 a barrel as traders anticipated a tightening in global supply.
In June last year, the European Union agreed to phase out all seaborne imports of Russian crude oil within the following six months as part of unprecedented Western sanctions aimed at reducing Moscow's ability to fund its war in Ukraine.
In a move aimed at further tightening the screws, G7 countries and the European Union agreed in December to cap the price at which Western brokers, insurers and shippers can trade Russia's seaborne oil for markets elsewhere at $60 a barrel.
Novak warned that the crude oil price cap could lead to "a decrease in investment in the oil sector and, accordingly, an oil shortage."
A potential drop in global oil supply could come at a tricky time. China's swift reopening of its economy has pushed up estimates for global oil demand.
▸ Adidas' breakup with Ye, formerly known as Kanye West, is proving to be a pricey one.
The company warned Thursday that it expected to lose $1.3 billion (1.2 billion euro) in revenue this year because it's unable to sell the designer's Yeezy clothing and shoes. Adidas ended its nine-year partnership with the rapper last October because of his antisemitic remarks.
Adidas said its financial guidance for 2023 "accounts for the significant adverse impact from not selling the existing stock." If the company can't "repurpose" any of the remaining Ye clothing, Adidas said that could cost the company $534 million (500 million euros) in operating profit this year.
Adidas said it also expects "one-off costs" of $213 million (200 million euros) because of a "strategic review" the company is currently undergoing.
Not mentioned were potential issues with its Beyoncé-led Ivy Park brand. The Wall Street Journal reported this week that sales of the once-trendy streetwear brand fell 50% last year to to about $40 million — way below its internal projections of $250 million. The partnership is "strong and successful," Adidas told the journal in response.
Shares of Adidas tanked nearly 10% in Frankfurt trading. Adidas' stock has dropped 45% over the past year.
▸ GM just inked an exclusive deal for the hottest product in automaking: Semiconductors.
General Motors has signed an agreement with tech manufacturer GlobalFoundries to make semiconductors for GM's various electronics suppliers.
GM's direct relationship with GlobalFoundries will give the automaker a secure supply of chips and will help control costs, said CEO Thomas Caulfield. GM will not have to pay mark-ups to its parts suppliers for semiconducter manufacturing.
The agreement is also part of an overall plan by GM to reduce the number of different chips needed to build GM vehicles.
"The supply agreement with GlobalFoundries will help establish a strong, resilient supply of critical technology in the U.S. that will help GM meet this demand, while delivering new technology and features to our customers,"
Doug Parks, GM executive vice president in charge of purchasing and supply chain, said in an announcement.
The automaker's stock has soared by about 23% so far this year.
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