2024-12-19 23:45

Dec 19 (Reuters) - The U.S. Department of Commerce has recently asked Nvidia (NVDA.O) , opens new tab to look into how the company's products ended up in China over the past year, The Information reported on Thursday, citing a person close to the department. The chip giant has asked big distributors such as Super Micro Computer (SMCI.O) , opens new tab and Dell Technologies (DELL.N) , opens new tab to conduct spot checks of their customers in Southeast Asia, the report said. Nvidia's artificial intelligence chips are embedded in server products made by Super Micro and Dell. The Information reported that five different people involved in smuggling Nvidia chips said they have managed so far to evade detection during recent inspections by Super Micro. "We insist that our customers and partners strictly adhere to all export control restrictions. Any unauthorized deviation of previously-owned products, including any grey market resales, would be a burden on our business, not a benefit," an Nvidia spokesperson said in an emailed response. Some of the customers duplicated serial numbers of the servers containing Nvidia chips that they purchased from Super Micro and attached them to other servers that they had access to, the report said, citing a person close to Super Micro. In some cases, smugglers even altered the serial numbers in the operating system for the servers, the report said. Dell said the company requires its distributors and resellers to follow all applicable regulations and export controls. The company added that it takes appropriate action "up to and including termination" of its relationship if a partner is not adhering to these obligations. Super Micro said it investigates and takes action against any unauthorized exports or re-exports of its products by third parties. "Supermicro follows all U.S. export control requirements on the sale and export of GPU systems to regions and parties that require licenses under the Export Administration Regulations," the company told Reuters. The commerce department did not respond to a Reuters request for comment. The Joe Biden administration has doubled down on its chip crackdown in China. The U.S. broadened a ban on the sale of high-end AI chips to the country last year. Still, several Chinese universities and research institutes procured these Nvidia chips via resellers, a Reuters review of tender documents showed earlier in 2024. Earlier this month, the U.S. curbed semiconductor exports to 140 companies, including chip equipment makers. Sign up here. https://www.reuters.com/technology/us-asks-nvidia-super-micro-investigate-how-chips-ended-up-china-information-2024-12-19/

2024-12-19 23:44

November core CPI rises 2.7% yr/yr vs forecast +2.6% Index excluding fuel rises 2.4% yr/yr vs +2.3% in October Data comes in wake of BOJ's decision to keep rates steady TOKYO, Dec 20 (Reuters) - Japan's core inflation accelerated in November as rising food and fuel costs hit households, data showed on Friday, keeping the central bank under pressure to raise interest rates. The data, which came in the wake of the Bank of Japan's decision to maintain interest rates at 0.25% on Thursday, highlights broadening inflationary pressure that could prod the bank to raise borrowing costs further. Renewed yen declines could pressure prices higher by pushing up import costs. The BOJ's decision to stand pat and Governor Kazuo Ueda's dovish comments drove the dollar to a five-month high of 157.80 yen on Friday. The nationwide core consumer price index (CPI), which includes oil products but excludes fresh food prices, rose 2.7% in November from a year earlier, government data showed, roughly in line with a median market forecast for a 2.6% gain. It accelerated from a 2.3% rise in October due partly to stubbornly high prices of rice and the phase-out of government subsidies to curb utility bills. "November's surge in inflation wasn't a surprise," Capital Economics wrote in a research note. "The Bank of Japan will have known it was on the cards when it decided not to hike rates yesterday. But it should add to the Bank's confidence that it can resume rate hikes over the months ahead," it said. A separate index that strips away the effects of volatile fresh food and fuel, scrutinised by the BOJ as a better gauge of demand-driven inflation, rose 2.4% in November from a year earlier after a 2.3% gain in October. Service-sector inflation was steady at 1.5% in a sign firms continued to pass on rising labour costs, the data showed. The BOJ ended negative interest rates in March and raised its short-term policy rate to 0.25% in July on the view Japan was on the cusp of durably achieving its 2% inflation target. It has stressed the BOJ's readiness to raise rates again if Japan continues to make progress in durably achieving its price target backed by domestic demand and sustained wage gains. Ueda said on Thursday the BOJ needed more information to hike rates again, stressing the need for clarity on next year's wage growth and incoming U.S. president Donald Trump's economic policies. "Given the (BOJ's) assessment that import price rises are subsiding, it's hard to expect the BOJ to hike rates in January," said Naoya Hasegawa, chief bond strategist at Okasan Securities, who projects a hike in March. "Most market players likely viewed Ueda's news conference as quite dovish," he said. Sign up here. https://www.reuters.com/markets/asia/japans-core-inflation-accelerates-keeps-boj-rate-hike-chance-alive-2024-12-19/

2024-12-19 23:35

Dec 19 (Reuters) - Walmart (WMT.N) , opens new tab said it is likely to miss its 2025 and 2030 targets for reducing planet-warming emissions due to challenges related to energy policy, infrastructure and availability of cost-effective low-carbon technologies. The U.S.-based retailer had pledged to reduce greenhouse gas emissions from its operations by 35% in 2025 and 65% in 2030, compared to levels in 2015. Neither of these targets appeared to be in reach and its progress was delayed, the company said in an update published on its website on Wednesday. Despite having a smaller carbon footprint per unit of sales compared to more polluting manufacturers and food processors, Walmart is facing some difficulties in reducing emissions due to the opening of more stores and shipment of goods. Walmart has cited three drivers of the emissions rise in 2023: pollution from aging refrigeration equipment, fuel emissions from transportation and expansion of renewable energy slowing relative to its business growth. Sign up here. https://www.reuters.com/sustainability/climate-energy/walmart-says-it-is-likely-miss-2025-2030-climate-change-targets-2024-12-19/

2024-12-19 23:22

FDA decision affects compounding pharmacies' sales of tirzepatide Compounding pharmacy industry group questions FDA's shortage resolution Lawsuit against FDA by compounding pharmacies put on hold Dec 19 (Reuters) - The U.S. Food and Drug Administration said on Thursday there was no longer a shortage of Eli Lilly's (LLY.N) , opens new tab blockbuster weight loss and diabetes drugs following a re-evaluation of their supply by the agency. The finding effectively bars widespread sales of cheaper copies of the drugs that many patients use, but the FDA said it would not take any action against the compounding pharmacies that make them within 60 to 90 days of Thursday's decision. Compounding pharmacies were not given a notice period when the FDA first declared that the drugs were out of shortage in October, before announcing days later that it would reconsider its decision. U.S. regulations allow compounding pharmacies to copy brand-name medicines that are in short supply. A Lilly spokesperson said anyone marketing or selling unapproved versions of tirzepatide, the chemical name for its weight-loss drug Zepbound and diabetes medicine Mounjaro, must now stop and begin transitioning patients to FDA-approved medicines. The Alliance for Pharmacy Compounding, which represents compounding pharmacists and technicians, said the announcement was not unexpected but "not necessarily the end of the story." "I’m just not persuaded that the data on which FDA is relying in this doubling-down on its shortage resolution decision is complete enough to say the shortage is really over," said Alliance CEO Scott Brunner. The FDA added that Novo Nordisk's (NOVOb.CO) , opens new tab rival weight-loss drug, Wegovy, was still in shortage, despite all doses being listed as available. The Alliance sent survey results to the FDA last month showing hundreds of thousands of patients were taking compounded versions of semaglutide, the chemical name for Wegovy, and said the agency should consider their role in alleviating the obesity drug supply crunch. Telehealth firm Hims & Hers Health (HIMS.N) , opens new tab, which offers compounded versions of Wegovy, declined to comment. Its shares, which have nearly tripled in value this year, closed 7.7% lower at $26.36 on Thursday. Eli Lilly shares have risen 30% so far this year, and closed down 0.9% at $757.54. Shares of Danish drugmaker Novo Nordisk have risen 10.6% this year and closed 3.7% lower on Thursday. Bernstein analyst Courtney Breen said the FDA's decision suggests the end of "compounder-spree" was near, but that this will have only a modest impact on the drug's prescription volumes in 2025. Another industry group that represents larger compounding pharmacies sued the FDA in October over its decision to take tirzepatide off its list of drugs experiencing shortages. The Outsourcing Facilities Association claimed the FDA had made its decision based on Lilly's claims it could meet demand for the drugs, without giving the public a chance to weigh in. It said the drug remained in short supply. The lawsuit was put on hold days later after the FDA agreed to reconsider the decision, allowing sales of compounded versions to continue in the meantime. In a joint court filing on Thursday, both sides said they were working to agree on a schedule for the case to go forward. They said that if the Outsourcing Facilities Association files a motion asking the court to block the FDA's decision within the next two weeks, the agency has agreed not to take any enforcement action while the court considers it. Insurers generally cover Lilly's and Novo’s drugs for diabetes, but many do not cover them for weight loss. That has led many patients to pay out of pocket for compounded versions. Lilly in August began sending cease-and-desist letters to telehealth companies, wellness centers and medical spas selling compounded versions of Zepbound and Mounjaro. The company has also filed lawsuits against sellers falsely claiming to sell FDA-approved versions of the drug. Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/us-fda-says-lillys-weight-loss-drug-shortage-resolved-2024-12-19/

2024-12-19 23:11

HOUSTON/LONDON, Dec 19 (Reuters) - U.S. crude oil exports to northwest Europe are likely to slip early next year after hitting a record high in November, as the arbitrage for transatlantic shipments has slammed shut and freight rates have climbed, analysts said this week. The spread between U.S. West Texas Intermediate (WTI) crude and Brent futures has narrowed to a discount of around $3.40 per barrel over the last two sessions, the smallest closing spread since October 2023. A narrower spread makes it less economic to ship barrels from the U.S. across the Atlantic. "A discount of $4, in my opinion, is always the line in the sand between a big export number versus a small export number," said Bob Yawger, director of energy futures at Mizuho. The tighter spread comes as freight rates have increased and inventories in the U.S. - including at the key storage hub in Cushing, Oklahoma - have dropped to 23 million barrels, their lowest mid-December level in 17 years. The decline in stockpiles means U.S. barrels are being priced to stay at home. At the end of November, the WTI/Brent spread had widened to roughly $4.50 per barrel, encouraging more flows across the Atlantic Ocean to higher priced markets and driving U.S. crude exports higher. But the spike in flows may be short lived. Freight rates for moving barrels from the U.S. Gulf Coast to northwest Europe have climbed roughly $1 from November to around $3.80 per barrel this month, according to data from commodity pricing firm Argus. The narrowing WTI/Brent spread contributed to those higher freight rates which are being used to price shipments for late January arrival, according to Sparta Commodities analyst Neil Crosby. "We would expect more limited U.S. to Amsterdam-Rotterdam-Antwerp flows in the short-term to emerge," Crosby said. The inclusion of WTI Midland crude in the dated Brent index has meant that the spread between the two is increasingly correlated to freight rates, as the price of Dated Brent is set by WTI Midland on many trading days. U.S. exports bound for Amsterdam-Rotterdam-Antwerp hit a record high of 771,000 barrels per day (bpd) in November, according to data from ship tracker Kpler. WTI priced at a steeper discount than $4 against Brent through most of October, according to LSEG, when those cargoes would have been booked, making those transatlantic flows more profitable. Sign up here. https://www.reuters.com/markets/commodities/us-crude-exports-europe-expected-fall-jan-shipping-economics-weaken-2024-12-19/

2024-12-19 23:01

Dec 20 (Reuters) - Australian conglomerate Wesfarmers (WES.AX) , opens new tab on Friday said it would sell its industrial gas supply arm, Coregas, to Japanese multinational firm Nippon Sanso (4091.T) , opens new tab for A$770 million ($480.33 million). Wesfarmers expects to report a pre-tax profit of around A$230 million to A$260 million from the deal. Coregas distributes industrial, medical and specialty gases in cylinders and offers a wide range of bulk gases for medium-to-large users across Australia and New Zealand. The deal is expected to be completed by mid-2025 and is subject to regulatory approvals. ($1 = 1.6031 Australian dollars) Sign up here. https://www.reuters.com/markets/commodities/wesfarmers-sell-coregas-japans-nippon-sanso-480-mln-2024-12-19/