2025-02-05 21:42

Feb 5 (Reuters) - U.S. agrichemicals firm Corteva (CTVA.N) , opens new tab posted a smaller fourth-quarter loss on Wednesday, helped by strong sales volumes. Crop Protection volume increased 16% over the previous year, driven primarily by Latin America, on demand for new products, while seed volume increased 19% due to the expected increase in Safrinha corn planted area in Brazil. The company's profit has been dented since 2023 by a slump in demand for insecticides and fungicides as farmers have slowed purchases in the face of lower income and rising costs. The insecticide maker said it is beginning to see stabilization in the crop protection industry, with continued volume gains in the fourth quarter, yet it expects price pressure will persist. The company is among the largest crop-protection product makers in the United States, competing with the likes of Syngenta and German firms BASF (BASFn.DE) , opens new tab and Bayer (BAYGn.DE) , opens new tab in the agricultural chemicals sector. Shares however were down over 4% after the bell, as Corteva's 2025 earnings forecast fell short of Wall Street expectations, signaling continued volatility in the agricultural market. Corteva forecast full-year 2025 operating earnings to be in the range of $2.70 to $2.95 per share. Analysts' expectation was of $3.13 per share, as per data compiled by LSEG. "As we look to 2025, we acknowledge the fluid macro environment but still see agri market fundametals impproving," CEO Chuck Magro said in a statement. The company expects to repurchase about $1 billion of shares during 2025. Net loss attributable to the Indianapolis-based company came in at $41 million, or $0.06 per share, for the three months ended December 31, compared with a loss of $253 million, or 36 cents per share, last year. Sign up here. https://www.reuters.com/markets/commodities/corteva-reports-smaller-fourth-quarter-loss-2025-02-05/

2025-02-05 20:31

WASHINGTON, Feb 4 (Reuters) - A neo-Nazi leader accused of plotting to attack Baltimore's power grid has been found guilty of conspiring to damage an energy facility, the U.S. Justice Department said on Tuesday. Brandon Russell, 29, of Orlando, Florida and an associate were arrested in February 2023 after the FBI thwarted their plan with the help of a confidential informant. Evidence presented at trial showed that between November 2022 and that month, Russell conspired to attack transformers within electrical substations "in furtherance of his racially or ethnically motivated violent extremist beliefs," the Justice Department said in a statement. Russell posted links to open-source infrastructure maps and described how a small number of attacks on substations could cause a "cascading failure," the department said. He recruited a Maryland-based woman, Sarah Beth Clendaniel, to carry out the attacks in order to interrupt and impair the power grid in Baltimore, Maryland's largest city, the department said. Clendaniel identified five substations to target and Russell attempted to secure a weapon for her. The planned attacks would have caused damage of more than $75 million, the department said. Russell is a convicted felon and founder of a neo-Nazi group called the Atomwaffen Division , opens new tab that works toward "ushering in the collapse of civilization," according to the Southern Poverty Law Center, a civil rights organization that tracks U.S. hate groups. He was previously sentenced to five years in prison after pleading guilty to possession of an unregistered destruction device and the improper storage of explosive materials. Russell is scheduled to be sentenced on June 17. He could face up to 20 years in prison. Clendaniel was sentenced to 18 years in prison in September 2024. Russell's lawyers declined to comment on the verdict. Sign up here. https://www.reuters.com/world/us/neo-nazi-leader-found-guilty-plot-attack-baltimore-power-grid-2025-02-05/

2025-02-05 20:24

Loonie touches a 2-week high at 1.4266 Canada posts first trade surplus in 10 months Price of U.S. oil settles 2.3% lower Bond yields ease across the curve TORONTO, Feb 5 (Reuters) - The Canadian dollar steadied near a two-week high against its U.S. counterpart on Wednesday as data showed Canada's trade balance shifting into surplus, with the currency holding on to its gains since Canada won a reprieve from U.S. trade tariffs. The loonie was trading nearly unchanged at 1.4320 per U.S. dollar, or 69.83 U.S. cents, after touching its strongest intraday level since January 20 at 1.4266. "Tariff worries are easing - for now, at least - which is allowing the CAD to stabilize," Shaun Osborne, chief currency strategist at Scotiabank, said in a note. "Unless trade talks deteriorate significantly again, there is a chance that the USD-CAD peak reached Monday near 1.48 will represent a significant high-water mark for spot." The Canadian currency touched a 22-year low on Monday at 1.4793 before news of a 30-day pause on U.S. tariffs on Canadian imports which had been due to take effect on Tuesday. The U.S. dollar fell (.DXY) , opens new tab to its lowest in more than a week against a basket of major currencies as investor nerves about a global trade war abated. Canada in December posted its first trade surplus in 10 months as exports expanded faster than imports, helped by a push by U.S. businesses to build up inventory ahead of potential tariffs. S&P Global's Canada services PMI data was more downbeat. It showed the services economy deteriorating for the second straight month in January as uncertainty generated by the threat of tariffs offset lower borrowing costs. The price of oil , one of Canada's major exports, settled 2.3% lower at $71.03 a barrel as a large build in U.S. crude and gasoline stockpiles signaled weaker demand. Canadian bond yields fell across the curve. The 10-year was down 6.4 basis points at 2.949%, moving closer to a 4-1/2-month low it touched on Monday. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-stabilizes-tariff-concerns-ebb-2025-02-05/

2025-02-05 20:21

Fed officials cautious on outlook for interest rate cuts Goolsbee says tariffs could impact inflation, supply chains Barkin notes complexity of tariffs' impact on inflation, demand WASHINGTON, Feb 5 (Reuters) - Federal Reserve officials on Wednesday pointed to the large policy uncertainty around tariffs and other issues arising from the early days of President Donald Trump's administration as among the top challenges in figuring out where to take U.S. monetary policy in the months ahead. Chicago Fed President Austan Goolsbee warned that ignoring the potential inflationary impact of tariffs would be a mistake, whereas Richmond Fed President Thomas Barkin said it remains impossible at this early stage to know where cost increases from any tariffs might be absorbed or passed along to consumers. The views of the two U.S. central bankers were emblematic of the cautious approach Fed officials are angling to take in deciding whether to resume interest rate cuts later this year or continue to keep them on hold. The Fed left its benchmark interest rate unchanged last week in the 4.25%-4.50% range after cutting it at three straight meetings to close out 2024. The U.S. economy is strong, the labor market is "plausibly" at full employment, and inflation has come down and is approaching the Fed's 2% goal, Goolsbee said in remarks prepared for delivery to the Chicago Fed's annual auto symposium in Detroit. "Yet we now face a series of new challenges to the supply chain - natural and man-made disasters from fires and hurricanes to collisions with bridges that take out major ports, canal cloggings and threats of dockworker walkouts; geopolitical disruptions; immigration; and, of course, the threat of large tariffs and the potential for an escalating trade war," Goolsbee said. "If we see inflation rising or progress stalling in 2025, the Fed will be in the difficult position of trying to figure out if the inflation is coming from overheating or if it's coming from tariffs," Goolsbee said. "That distinction will be critical for deciding when or even if the Fed should act." The Trump administration announced last weekend that 25% tariffs on imports from Mexico and Canada would start on Feb. 4, but it delayed them until March 1 after the leaders of the two major U.S. trade partners agreed to crack down on drug smuggling and help stem the flow of undocumented migrants into the U.S. An additional 10% tariff on imports from China went into effect on Tuesday. LAYERS OF COMPLEXITY Barkin, speaking to reporters after a Conference Board event in New York, said the "lean" in the latest set of policymaker projections is still toward further rate cuts this year, although uncertainty about the impact of tariffs, immigration and regulations will need to be better understood. On tariffs specifically, Barkin said he sees three layers of complexity in arriving at their ultimate impact on inflation and demand. First is the uncertainty around the level of duties and exactly who they are levied upon, Barkin said. The next unknown is whether other countries retaliate with tariffs of their own and to what degree companies absorb or pass on the higher import costs. Lastly, he said, is seeing "how this will all land on consumers." Economists generally view tariffs as a one-time lift to prices that should not feed into inflation in any persistent way or suggest the economy is overheating, which means a response from the central bank is not required. Goolsbee, however, said this time "tariffs may apply to more countries or more goods or at higher rates, in which case the impact could turn out to be larger and longer lasting," compared to 2018 when Trump put import duties in place during his first administration. "If in 2018 companies shifted all the easiest things out of China, then what's left might be the least substitutable goods," he said. "In that case, the impact on inflation might be much larger this time." Goolsbee noted that in the auto industry, where parts used in the final assembly of a truck or car could cross borders multiple times as part of complex supply chains, tariffs could get stacked on top of tariffs. And even if those tariffs don't get passed directly along to car buyers, they can impact inflation in other ways, he suggested. Suppliers say they believe manufacturers will balk at paying more for parts, so suppliers will end up eating the cost, and with margins tight already, they fear a wave of supplier bankruptcies, he said. Goolsbee has until now been one of the Fed's most vocal supporters of lowering interest rates to better align them with falling inflation. Sign up here. https://www.reuters.com/world/us/fed-leaning-toward-more-rate-cuts-amid-uncertainty-barkin-says-2025-02-05/

2025-02-05 20:00

Company says US portfolio has led to pressure on credit metrics Sees 2026 EBITDA of $4.05 bln-$4.61 bln, excluding partnerships Feb 5 (Reuters) - Denmark's Orsted (ORSTED.CO) , opens new tab has decided to cut its 2030 investment program by 25%, the renewable energy firm said on Wednesday, as the offshore wind industry grapples with rising costs and supply chain issues. The firm will now invest in the range of 210 billion to 230 billion Danish crowns ($29.32 billion to $32.12 billion) for the period of 2024 to 2030, down from its previous target of 270 billion Danish crowns. Orsted also withdrew its previously set 2030 target for installed renewable capacity of 35-38 gigawatts, less than a week after replacing its top boss with a company insider Rasmus Errboe. "We'll reduce our investment programme towards 2030 through a stricter, more value-focused approach to capital allocation. We do this to ensure a stronger balance sheet," Errboe said. The group has been crucial to establishing a European industry for wind at sea, but the industry has struggled in recent years and now faces challenges from U.S. President Donald Trump, who has raised opposition to wind power. The cuts will not impact the group's renewable projects under construction, Orsted said, adding that it will be restructuring its workforce and reduce the pace of new construction. The Danish renewable energy firm has struggled to unleash the potential of the U.S. offshore wind market and been forced to book several impairment charges. The company said on Wednesday its U.S. offshore wind portfolio has led pressure on its credit metric. The company expects its earnings before interest, taxes, depreciation and amortisation to increase to a range of 29 billion to 33 billion Danish crowns in 2026, excluding new partnerships and cancellation fees. Orsted's woes reflect the changing fortunes of wind power globally as soaring costs, delays and limited supply chain investment prompt investors to reassess the speed of energy transition. The firm on Wednesday met its estimates for full-year results and reiterated that it aims to reinstate dividends from 2026. ($1 = 7.1603 Danish crowns) Sign up here. https://www.reuters.com/business/energy/denmarks-orsted-slashes-investment-program-by-25-2025-02-05/

2025-02-05 19:11

Second bird flu strain detected in dairy cattle for first time Detection came through national milk testing program Containment is critical, veterinary expert says Feb 5 (Reuters) - U.S. dairy cattle tested positive for a strain of bird flu that previously had not been seen in cows, the U.S. Department of Agriculture said on Wednesday, ramping up concerns about the persistent spread of the virus. The H5N1 virus has reduced milk output in cattle, pushed up egg prices by wiping out millions of hens, and infected nearly 70 people since April as it has spread across the country. Genome sequencing of milk from Nevada identified the different strain, known as the D1.1 genotype, in dairy cows for the first time, the USDA said. Previously, all 957 bird flu infections among dairy herds reported since last March had been caused by another strain, the B3.13 genotype, according to the agency. Reuters reported news of the detection of the second strain on Wednesday ahead of USDA's announcement. The second strain was the predominant genotype among wild birds this past fall and winter and has also been found in poultry, the USDA said. It was identified in dairy cattle through an agency program that began testing milk for bird flu in December. "We're seeing the H5N1 virus itself be smarter than all of us," said Beth Thompson, South Dakota's state veterinarian. "It's modifying itself so it's not just staying in the poultry and the wild waterfowl. It's picking up a home in the mammals." Wild birds likely transmitted the second strain to cattle in Nevada, said J.J. Goicoechea, Nevada's agriculture director. Farmers need to ramp up safety and security measures to protect their animals, he said. "We obviously aren't doing everything we can and everything we should or the virus wouldn't be getting in," he said. The Nevada Department of Agriculture said on January 31 that herds in two counties had been placed under quarantine due to bird flu detections. It is important for the USDA to contain the outbreak in the state quickly, so the strain does not spread to dairy cattle elsewhere, said Gail Hansen, a veterinary and public health consultant. Last year, bird flu spread across the country as infected cattle were shipped from Texas after the virus first leapt to cows from wild birds. "We didn't get a hold on it before," Hansen said. "We want to avoid that same scenario from happening in Nevada." Dairy herds that were formerly infected may be at risk again from the second strain, experts said. "Now it looks like we have new strains of virus that may escape some of the immunity associated with the other strains of viruses that could exacerbate the epidemics among animals and wildlife," said Gregory Gray, a University of Texas Medical Branch professor studying cattle diseases. "It's alarming." Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/usda-detects-bird-flu-strain-dairy-cattle-not-previously-seen-cows-according-2025-02-05/