Key Takeaways
- French manufacturing production fell 1.1% in June, missing expectations as the industrial sector grapples with high costs and weak demand.
- Apple (AAPL) is facing a pricing deadlock with CXMT over LPDDR5X mobile DRAM, with the Chinese supplier reportedly rejecting requests for price cuts despite Apple's efforts to lower iPhone manufacturing costs.
- Glencore (GLEN) has halted new business with iron ore trader Radiant World and taken a non-material provision on its books following allegations of document falsification.
- Memory costs for Apple are projected to rise significantly through the September quarter, driven by AI-related demand diverting supply away from mobile devices.
French Industrial Sector Under Pressure
France's industrial landscape showed signs of strain in June 2026, with manufacturing production dropping 1.1% month-over-month, a steeper decline than the previous month's 1.0% contraction. On a year-over-year basis, manufacturing output plummeted 1.7%, reversing a prior growth trend of 2.5%. Economists point to persistent price pressures and low client confidence, exacerbated by geopolitical tensions, as the primary drivers of the slowdown.
Broader industrial production, which includes energy and mining, managed a marginal 0.1% increase in June, though this fell short of the 0.3% estimate. The yearly figure for total industrial production dipped into negative territory at -0.1%, down sharply from the 3.2% growth recorded previously. The data suggests a deepening malaise in the Eurozone’s second-largest economy as factories clear backlogs rather than fulfilling new orders.
Apple’s Supply Chain Tensions with CXMT
Apple (AAPL) is reportedly struggling to mitigate rising hardware costs as it negotiates with Chinese memory giant ChangXin Memory Technologies (CXMT). Despite Apple’s attempts to secure lower prices for LPDDR5X mobile DRAM to ease pressure on the next-generation iPhone lineup, CXMT has reportedly rejected these requests. The Chinese firm is instead insisting on prices comparable to or higher than those of market leaders Samsung and SK Hynix.
This standoff comes at a critical time for Apple (AAPL), which has already implemented price hikes across several product lines due to a global memory shortage. The shortage is largely attributed to the AI boom, which has diverted production capacity toward high-bandwidth memory for data centers. Furthermore, Apple (AAPL) faces significant political pushback from U.S. lawmakers, who are urging the company to avoid Chinese suppliers like CXMT due to national security concerns.
Glencore Limits Exposure to Radiant World
Commodity giant Glencore (GLEN) has officially distanced itself from Radiant World, one of the world's largest iron ore traders. Management confirmed that they have stopped all new business with the firm and have taken a provision on existing contracts. The move follows reports that Radiant World may have provided banks with invalid or falsified documents to secure financing.
Glencore (GLEN) emphasized that its remaining exposure to Radiant World is limited and is not expected to have a material impact on its financial results. This retreat mirrors actions by other major players like Vitol and Cargill, who have also cut ties with the trader. The situation highlights the fragile nature of trust in the trade finance sector, where banks like Intesa Sanpaolo have already booked €200 million in provisions related to the firm.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.