2024-12-05 19:04

Dec 5 (Reuters) - Baxter International (BAX.N) , opens new tab said on Thursday it has resumed production on all dialysis solution manufacturing lines at its North Carolina facility after they were impacted by hurricane-related flooding. The company said it had restarted production of intravenous solutions on two lines in November, and added they were manufacturing 1-liter IV solution bags, the most commonly used size by hospitals and clinics, at 85% of their pre-hurricane capacity. The North Cove facility in North Carolina was temporarily closed due to flooding caused by Hurricane Helene in late September. The plant makes 60% of the United States' supply of IV fluids and peritoneal dialysis (PD) solutions, according to the American Hospital Association. PD solution is a type of cleansing liquid that contains water, salt and other additives which help filter blood. Previously, the company had asked doctors and healthcare professionals to limit new dialysis patients to those under 18 years as it worked to resolve supply issues. The medical device maker added that while production on these lines has restarted, it would take some time to ramp up and produce at pre-hurricane levels. Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/baxter-resumes-dialysis-solution-production-its-hurricane-hit-facility-2024-12-05/

2024-12-05 18:43

Mali seeks more income following gold price rally Resolute's CEO and other employees were also detained Mali, Niger, Burkina Faso all increasing pressure on miners BAMAKO, Dec 5 (Reuters) - Mali, one of Africa's biggest gold producers, has issued an arrest warrant for Barrick Gold (ABX.TO) , opens new tab Chief Executive Mark Bristow, a warrant document seen on Thursday by Reuters showed, escalating a dispute with the Canadian mining company. The West African country's junta-led government is seeking more income from the sector to bolster state revenues as prices of the precious metal rally and has detained mining executives to put pressure on foreign companies operating there. Four senior local employees of Barrick were briefly detained in September as the government demanded about $500 million in unpaid taxes, and then arrested again last month pending trial. Bristow told Reuters in early November that the world's No. 2 gold miner was confident of resolving claims and disputes with authorities before the end of the year. He is accused of money laundering and violating financial regulations, the warrant document, first reported by Malian media and dated Dec. 4, showed. Its authenticity was confirmed by two sources close to the matter who asked not to be identified. Barrick said the company "will not be commenting" on the reported arrest warrant, responding to a Reuters request. Barrick's shares were down 2.9% on the Toronto stock exchange after the news. Bristow, a South African national who shuttles between Britain and the United States, last travelled to Mali in July, according to the company website. Barrick has its headquarters in Toronto. Another document showed Mali had also issued an arrest warrant for Cheick Abass Coulibaly, general manager at Barrick's Loulo-Gounkoto mining complex in Mali. Australia's Resolute Mining (RSG.AX) , opens new tab also had its British CEO and two other employees detained by Mali's military-led authorities over a tax dispute last month. They were released after the miner agreed to pay $160 million. The detentions and arrest warrants in Mali highlight the challenges faced by international mining companies in the region, where Burkina Faso and Niger have also increased pressure on them. Burkina junta leader Ibrahim Traore said in October the country plans to withdraw mining permits from some foreign companies and will seek to produce more of its own gold. Niger has taken control of French nuclear fuels company Orano's Somair uranium mine, the company said on Wednesday. The three countries have shifted away from traditional allies such as the United States and former colonial power France, and grown closer to Russia, which is helping provide security for their military leaders. Sign up here. https://www.reuters.com/world/africa/mali-issues-arrest-warrant-barrick-gold-ceo-document-shows-2024-12-05/

2024-12-05 18:22

Canadian dollar gains 0.2% against the greenback Trade deficit narrows in October Price of oil decreases 0.4% Bond yields edge lower across the curve TORONTO, Dec 5 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Thursday as investors took stock of recent gains for the American currency ahead of employment data on both sides of the border that could guide expectations for interest rate cuts. The loonie was trading 0.2% higher at 1.4050 to the U.S. dollar, or 71.17 U.S. cents, after trading in a range of 1.4011 to 1.4079. Still, it has weakened 4.5% since late September. "Ultimately, I think the driver in the move is a little bit of profit-taking in the U.S. dollar," said Rahim Madhavji, president at KnightsbridgeFX.com. "People are getting ahead of what we're going to see tomorrow in (U.S.) non-farm payrolls." The Canadian dollar is expected to recoup only a small fraction of its recent losses over the coming year as the threat of U.S. trade tariffs hampers the outlook for Canada's export-dependent economy, a Reuters poll found. The greenback fell on Thursday against a basket of major currencies as initial claims for U.S. state unemployment benefits rose and investors stuck with bets the Federal Reserve would cut interest rates at a policy decision on Dec. 18. Canada and the United States are due to release their November employment reports on Friday. Economists expect a Canadian jobs gain of 25,000, while U.S. non-farm payrolls are forecast increasing by 200,000. The Bank of Canada is expected to continue its easing cycle at a policy decision next Wednesday. Domestic data on Thursday showed that Canada's trade deficit narrowed to C$924 million ($657.60 million) in October. The price of oil , one of Canada's major exports, fell 0.4% to $68.25 a barrel even as OPEC+ delayed its planned output increase by three months. Canadian bond yields edged lower across the curve, with the 10-year down 1.4 basis points at 3.064%. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-rises-ahead-monthly-employment-data-2024-12-05/

2024-12-05 18:17

Weekly jobless claims increase 9,000 to 224,000 Continuing claims drop 25,000 to 1.871 million Trade deficit narrows 11.9% to $73.8 billion Trade on track to add to GDP, but tariffs pose threat WASHINGTON, Dec 5 (Reuters) - The number of Americans filing new applications for unemployment benefits rose slightly last week, pointing to steadily easing labor market conditions heading into the final stretch of 2024. Sluggish hiring, however, means some people who lose their jobs are collecting unemployment checks for longer periods relative to early this year, potentially keeping the jobless rate above 4.0%. Economists said this should allow the Federal Reserve to cut interest rates again this month despite stalled progress in lowering inflation to the U.S. central bank's 2% target. "Claims remain low by long-run standards, but still high enough to perpetuate the rising trend in the unemployment rate, given very modest hiring," said Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics. Initial claims for state unemployment benefits rose 9,000 to a seasonally adjusted 224,000 for the week ended Nov. 30, the Labor Department said on Thursday. Economists polled by Reuters had forecast 215,000 claims for the latest week. The data included the Thanksgiving holiday, which could have injected some noise into the report. Claims are entering a period of volatility, which could make it difficult to get a clear picture of the labor market. Unadjusted claims dropped 34,967 to 210,166 last week amid a plunge of 9,777 in filings in California and a tumble of 6,383 in Texas. There were also sizeable declines in Florida and North Carolina as the effects of Hurricanes Helene and Milton faded. Other states reporting notable decreases included Georgia, New York, Wisconsin and Illinois. Claims remain at levels consistent with continued job growth, and have signaled a sharp rebound in nonfarm payrolls in November after the labor market was severely distorted by Helene and Milton as well as strikes by factory workers at Boeing (BA.N) , opens new tab and another aerospace company. Nonfarm payrolls likely increased by 200,000 jobs in November after rising by 12,000 in October, the lowest number since December 2020, a Reuters survey showed. The unemployment rate is forecast to rise to 4.2% from 4.1% in October. The historically low layoffs account for most of the labor market's strength. Hefty interest rate hikes from the Fed in 2022 and 2023 to tame inflation have left companies with little appetite to hire more workers. The Fed's "Beige Book" report on Wednesday described employment as "flat or up only slightly" across the central bank's districts in November. It also noted "hiring activity was subdued as worker turnover remained low and few firms reported increasing their headcount," adding that "the level of layoffs was also reportedly low." The number of people receiving benefits after an initial week of aid, a proxy for hiring, fell 25,000 to a seasonally adjusted 1.871 million during the week ending Nov. 23, the claims report showed. Unadjusted so-called continuing claims increased by 5,927 in Washington state, likely because of the lingering effects of the Boeing strike. They also rose considerably in Minnesota, but fell sharply in California, Florida and Georgia. Stocks on Wall Street were mixed. The dollar fell against a basket of currencies. Yields on shorter-dated U.S. Treasury notes rose. IMPORTS DECLINE "Perhaps workers laid off at related suppliers aren't being rehired in anticipation of the coming layoffs at Boeing," said Nancy Vanden Houten, lead U.S. economist at Oxford Economics. The Fed launched its easing cycle in September, having hiked its policy rate by 525 basis points in 2022 and 2023. It is widely expected to deliver another rate cut later this month. The interest rate outlook for 2025 is uncertain amid threats of tariffs and tax-cut promises from President-elect Donald Trump. Economists have said these actions would raise prices and increase government borrowing. A separate report from the Commerce Department's Bureau of Economic Analysis showed the trade deficit contracted 11.9% to $73.8 billion in October as imports declined by the most since late 2022, potentially positioning trade to contribute to economic growth this quarter. Economists had forecast the trade deficit would ease to $75.0 billion. Imports dropped 4.0%, the biggest decrease since November 2022, to $339.6 billion. Goods imports tumbled 5.5% to $269.3 billion. Businesses concerned about Trump's threats to raise tariffs could try to front-load imports, which would reverse October's drop. Trump has said he would impose a 25% tariff on all products from Mexico and Canada and an additional 10% tariff on goods from China on his first day in office. Worries about a potential dock workers strike in January could also see businesses scrambling to get more imports in. Imports of capital goods decreased $7.5 billion in October, weighed down by declines in imports of computers and semiconductors. Imports of industrial supplies and materials, which include petroleum, fell $3.3 billion. Petroleum imports at $17.2 billion were the lowest since June 2021. There were also decreases in imports of consumer goods, mostly pharmaceutical preparations. Imports of automotive vehicles, parts and engines also fell. Imports of services rose $1.4 billion to a record high $70.2 billion, boosted by travel, charges for the use of intellectual property, transport, insurance and other business services. Exports fell 1.6% to $265.7 billion. Goods exports dropped 3.0% to $170.7 billion, led by a $3.9 billion decrease in capital goods exports. Shipments of automotive vehicles, parts and engines also fell, as did those of industrial supplies and materials, and consumer goods. Exports of services increased $1.0 billion to an all-time high of $95.1 billion. They were lifted by travel, other business services, maintenance and repair, transport and charges for the use of intellectual property. Exports of telecommunications, computer and information services also rose. The goods trade deficit narrowed 9.5% to $98.7 billion. It decreased 7.3% to $92.4 billion when adjusted for inflation, prompting the Atlanta Fed to raise its GDP estimate for the fourth quarter to a 3.3% annualized rate from a 3.3% pace. The economy grew at a 2.8% annualized rate in the July-September quarter. Trade has been a drag on economic growth for three straight quarters. "We could be in for an extended period of wildly fluctuating trade data well into 2025," said Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets. Sign up here. https://www.reuters.com/markets/us/us-weekly-jobless-claims-rise-moderately-2024-12-05/

2024-12-05 15:53

Dec 5 (Reuters) - U.S. carriers Southwest Airlines (LUV.N) , opens new tab and American Airlines (AAL.O) , opens new tab lifted their fourth-quarter forecasts on Thursday, betting on buoyant domestic travel demand during the holiday season and improved pricing. Shares of the airlines rose in morning trading and lifted their peers, with the S&P 1500 airlines sub-index (.SPCOMAIR) , opens new tab hitting its highest level since June 2021. Signaling a strong start to the travel season, the U.S. Transportation Security Administration said it had screened 3.08 million airline passengers on Sunday, the highest number ever on a single day. U.S. airlines are set to fly more than 31 million passengers over the holiday period, up from nearly 29 million during the same period in 2023, according to trade association Airlines for America. The raised forecasts follow warnings on the impact of the U.S. presidential election on travel demand. Southwest's CEO Bob Jordan, speaking at a Goldman Sachs conference, said the carrier drew network capacity down during the election week to align with demand. The budget carrier expects fourth-quarter revenue per available seat mile to be up between 5.5% and 7%, compared with its prior expectation of between 3.5% and 5.5%. It also said it was encouraged by revenue trends and forward bookings. Meanwhile, American also lifted its fourth-quarter adjusted earnings and total revenue per available seat mile forecast, sending its shares up nearly 10%. Jordan said Southwest was working with Boeing (BA.N) , opens new tab to fix a jet delivery target on a number that was more "conservative" than its 90 jet estimate. The company continued to expect about 20 Boeing 737-8 jet deliveries this year and to retire roughly 40 older 737 models from its fleet. The airline has struggled to find its footing after the pandemic, in part due to Boeing's delivery delays and industry-wide overcapacity in the domestic market. Shares of Delta Air Lines (DAL.N) , opens new tab and United Airlines (UAL.O) , opens new tab were up 2.5% each. Southwest said it expects economic fuel costs per gallon to fall in a range of $2.35 to $2.45 in the current quarter, compared with its previous forecast of $2.25 to $2.35. Sign up here. https://www.reuters.com/business/aerospace-defense/southwest-airlines-raises-fourth-quarter-unit-revenue-forecast-2024-12-05/

2024-12-05 15:19

JOHANNESBURG, Dec 5 (Reuters) - South Africa's rand strengthened on Thursday on expectations of an interest rate cut by the U.S. Federal Reserve later this month. At 1513 GMT, the rand traded at 18.05 against the dollar , about 0.7% stronger than its previous close. The dollar index was last down 0.4% against a basket of currencies. "The rand is positioned for a strong year-end performance against the USD, supported by expectations of a U.S. rate cut," said Zain Vawda, market analyst at MarketPulse by OANDA. The Fed's next rate-setting meeting is over Dec. 17-18, with the implied chance of a cut now around 75%. On Friday, markets will look to U.S. non-farm payrolls for further clues about the health of the world's largest economy. Like other risk-sensitive currencies, the rand often takes direction from global drivers like U.S. economic data. On the domestic front, data showed on Thursday that South Africa's current account deficit was broadly unchanged from the second to the third quarter of this year, staying at 1.0% of gross domestic product. On the stock market, the Top-40 (.JTOPI) , opens new tab index closed about 0.7% up. South Africa's benchmark 2030 government bond was weaker, with the yield up 2.5 basis points to 8.95%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-firms-markets-look-fed-rate-cut-2024-12-05/