2024-11-08 17:24

Loonie weakens 0.5% against U.S. dollar Canada adds 14,500 jobs in October Price of U.S. oil decreases nearly 3% 10-year yield eases 2.2 basis points TORONTO, Nov 8 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Friday as oil prices fell and domestic employment data supported bets for another outsized interest rate cut by the Bank of Canada next month. The loonie was trading 0.5% lower at 1.3925 to the U.S. dollar, or 71.81 U.S. cents, moving back in reach of the two-year low it hit on Nov. 1 at 1.3959. Canada added 14,500 jobs in October, fewer-than-expected, and wages of permanent employees rose as the economy struggled to absorb the slack built up due to a rapidly increasing labor force. "Odds on a 50-basis-point rate cut at the Bank's December meeting are holding just above coin-toss levels, and the rate differential between U.S. and Canadian ten-year bond yields remains extremely wide relative to history, helping put sustained pressure on the loonie," Karl Schamotta, chief market strategist at Corpay, said in a note. Investors see a roughly 60% chance the BoC would cut on Dec. 11 by a larger than usual half percentage point for a second straight meeting. The gap between the Canadian 10-year yield and the U.S. equivalent was trading at about 112 basis points in favor of the U.S. note, nearly the biggest gap in LSEG data going back to 1994. For the week, the loonie was up 0.2%, after it clawed back on Thursday some of the losses it sustained after the outcome of the U.S. presidential election. Republican President-elect Donald Trump has proposed sweeping tariffs on imported goods. Canada sends about 75% of its exports to the United States, including oil. The price of oil was trading nearly 3% lower at $70.23 a barrel, while the U.S. dollar (.DXY) , opens new tab notched gains against a basket of major currencies. Canadian bond yields were mixed across a flatter curve. The 10-year was down 2.2 basis points at 3.195%. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-falls-jobs-miss-keeps-jumbo-rate-cut-play-2024-11-08/

2024-11-08 14:58

SAO PAULO, Nov 8 (Reuters) - Brazilian planemaker Embraer (EMBR3.SA) , opens new tab raised its projected adjusted earnings before interest and taxes margin for 2024 to between 9% and 10%, from the previous 6.5%-7.5% range, it said on Friday in a securities filing, while also posting a jump in third-quarter profit. In a conference call with analysts on Friday, top Embraer executives added that the profit margins currently projected by the company are "far below our ambition." In its updated guidance, the world's third-largest planemaker behind Airbus (AIR.PA) , opens new tab and Boeing (BA.N) , opens new tab also bumped up its free cash flow guidance for this year to $300 million or higher, from the floor of $220 million that was previously expected. The company lowered its guidance for this year's commercial aircraft deliveries to between 70 and 73, from the previously estimated 72 to 80. "We expect a positive reaction to the new guidance due to the increase in profitability and FCF (free cash flow)," JPMorgan analysts said in a report to clients. Shares in Embraer rose more than 2% in early trading, while Brazil's benchmark stock index Ibovespa (.BVSP) , opens new tab fell more than 1%. Sao Paulo-traded shares of the planemaker are up 128% this year amid good demand for its aircraft. Embraer said in a separate securities filing on Friday that its third-quarter adjusted net profit in dollars jumped to $221 million, up from $32.9 million a year earlier. The result was also much higher than the $74.8 million net profit expected by analysts polled by LSEG. Embraer said the much higher-than-expected adjusted net profit excluded extraordinary items, such as $50.8 million spent on deferred taxes and a $8.6 million loss in results for its Eve unit. Adjusted earnings before interest, taxes, depreciation and amortization rose to $356.6 million from $149.3 million in the year-earlier period, beating the $162 million expected by analysts. Embraer's net revenue jumped to $1.69 billion in the third quarter, from $1.28 billion a year earlier. "There was solid performance by Defense & Security and Executive Aviation, whose revenues increased both 65% year-on-year," the company said. Embraer said in its quarterly conference call that it expects "double-digit growth for aircraft deliveries, revenue and EBIT for 2025 and beyond," but added that it is still facing many supply chain challenges, which explains the downward revision in its 2024 delivery guidance. The planemaker said last month that it delivered 57 non-defense aircraft in the third quarter, up 33% from a year earlier, split between 16 commercial and 41 executive jets. In September, Embraer announced that Boeing (BA.N) , opens new tab will pay it a gross amount of $150 million over the U.S. planemaker's decision to abort talks on a $4.2 billion agreement to buy Embraer's commercial jet-making operations in the middle of the COVID pandemic. ($1 = 5.6923 reais) Sign up here. https://www.reuters.com/business/aerospace-defense/brazilian-planemaker-embraers-third-quarter-profit-soars-207-mln-2024-11-08/

2024-11-08 12:36

French wine output seen at 36.9 million hectolitres, down 23% Champagne region most affected with 46% drop in production All types of wines affected PARIS, Nov 8 (Reuters) - France's wine output is expected to fall by nearly a quarter this year after adverse weather hurt vineyards throughout the cycle with the Champagne region most hit, the French farm ministry said on Friday. In a monthly report, the ministry projected wine output this year at 36.9 million hectolitres, down from 37.5 million forecast last month and now 23% below last year's small vintage when there had been major disparities between regions. The revised forecast, based on the latest harvest results, was 17% below the five-year average of 44.2 million hectolitres. A hectolitre is the equivalent of 100 litres, or 133 standard wine bottles. "This year was characterized by unfavorable weather, with precipitation from flowering to harvest in most wine-growing areas and health problems that reduced volumes," the ministry said in a monthly report. "In many vineyards, flowering took place in cool and damp conditions, leading to "coulure" (dropping of flowers and young grapes) and "millerandage" (formation of small grapes). Added to this were losses due to frost in the spring, mildew and hail in the summer," the ministry said. All types of wine were affected, as well as those intended for the distilled spirit eau-de-vie which benefited from an exceptional harvest in 2023, it said. Champagne recorded the sharpest fall in output among large wine-producing regions this year with a fall 46% from a good 2023 and 31% below the five-year average. "In addition to the lack of sunshine which disrupted the development of the grapes, there were spring frosts, mildew, hail, scalding and excessive rainfall," the ministry said, referring to the Champagne region. Champagne producers in July had called for a cut in the number of grapes harvested this year after sales of the wine fell more than 15% in the first half of the year as customers tightened their belts due to an uncertain economy. Sign up here. https://www.reuters.com/markets/commodities/french-wine-output-seen-falling-by-quarter-due-adverse-weather-2024-11-08/

2024-11-08 12:34

Nov 8 (Reuters) - Baxter International (BAX.N) , opens new tab cut its annual profit forecast on Friday due to a hurricane-related hit to its intravenous solutions facility, sending its shares down 3.3% in premarket trading. The Deerfield, Illinois-based company has been trying to reinstate production at its North Carolina plant, which makes 60% of the United States' supply of IV fluids and some key dialysis solutions, after it was closed in late September due to flooding caused by Hurricane Helene. Baxter has said it aims to return to between 90% and 100% allocation of certain IV solutions by the end of 2024. As a result of the hurricane, it expects total company fourth-quarter sales to be negatively impacted by about $200 million. Baxter expects full-year adjusted profit between $2.90 and $2.94 per share, compared with its previous expectation of $2.93 to $3.01. Analysts were expecting a profit of $2.95 per share. Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/baxter-cuts-annual-profit-forecast-hurricane-impact-2024-11-08/

2024-11-08 12:19

LONDON, Nov 8 (Reuters) - Drivers for ride-hailing and food delivery startup Bolt in Britain on Friday won a case to be legally recognised as "workers", entitling them to holiday pay and the minimum wage. Around 10,000 current and former Bolt drivers took legal action against Bolt at a London employment tribunal, arguing that they were formally workers under British law. The claimants' lawyers said the ruling could ultimately leave Bolt with a bill for compensation to their 15,000 clients of over 200 million pounds ($259.2 million). Bolt, which is headquartered in Estonia, argued at a hearing earlier this year that it was merely an agent for drivers, who entered into separate contracts with their passengers, but its case was largely rejected. The tribunal said in its written ruling that drivers were workers when they were in the territory in which they are licensed to operate and have the Bolt app switched on. "Overwhelmingly, the power lies with Bolt," the tribunal said. "There is nothing in the relationship which demands, or even suggests, agency." The tribunal added that "the supposed contract between the Bolt driver and the passenger is a fiction designed by Bolt – and in particular its lawyers – to defeat the argument that it has an employer/worker relationship with the driver". A Bolt spokesperson said: "Drivers are at the heart of what we do and we have always supported the overwhelming majority's choice to remain self-employed independent contractors, protecting their flexibility, personal control, and earning potential." The spokesperson added that Bolt would "carefully review our options, including grounds for appeal". Leigh Day, the law firm representing the claimants, said the ruling "affects all of the 100,000-plus drivers who take on work through the Bolt private hire hailing app". Friday's ruling is the latest concerning the status of those working in the so-called gig economy, following a landmark 2021 ruling by the Supreme Court that Uber drivers were workers. Sign up here. https://www.reuters.com/world/uk/bolt-drivers-win-uk-tribunal-claim-over-workers-employment-status-2024-11-08/

2024-11-08 12:18

MEXICO CITY, Nov 8 (Reuters) - Two of Latin America's top airlines - Chilean carrier LATAM and Mexico's Aeromexico - are considering alternatives to sustainable aviation fuel (SAF), which remains in short supply in the region, as a means to cut carbon emissions. WHY IT'S IMPORTANT Aviation is a heavily polluting industry due to the jet fuel used to power planes. The sector agrees that the transition to using SAFs is a priority to reach net-zero carbon emissions commitments, and some countries have rolled out incentive programs or regulations setting minimum percentage targets for SAF use. However, fuel feedstocks made from waste products such as used cooking oils and crop residues remain in short supply and are much costlier than traditional fuel. CONTEXT Aeromexico has been piggybacking off U.S. carrier Delta's tie-ups for SAF supply, an Aeromexico executive told journalists, capitalizing on a years-long partnership. Aeromexico also makes use of so-called "book-and-claim" deals, said Karen Farias, the carrier's head of environmental, social, and governance matters. This allows airlines to offset emissions by purchasing credits originating from the use of SAF by other carriers. Sugarcane is in plentiful supply and could be an option for producing SAF in Mexico and Paraguay, LATAM Airlines' Mexico head Diana Olivares said at an event hosted by ProChile. Construction is currently under way on an SAF plant in Paraguay that will use cooking oils and soybean oil. And both LATAM and Aeromexico are rolling out artificial-intelligence programs to monitor and make fuel usage more efficient, the airlines' executives said. KEY QUOTES "Airlines have a bad reputation for being really contaminating," Olivares said. "But it's something we're working very hard on." "We can't just say: 'Well this is hard,' because we're going to fall behind," Farias said. BY THE NUMBERS Aviation is responsible for about 2% of all greenhouse gas emissions, according to data shared by Aeromexico. Swapping out traditional fuel for SAFs represents "about 60% of the solution" in bringing airlines' emissions down, Olivares said. Sign up here. https://www.reuters.com/business/energy/latam-aeromexico-weigh-alternatives-scarce-sustainable-fuels-2024-11-08/