2024-05-07 14:39

SANTIAGO, May 7 (Reuters) - Chile's central bank said in a report on Tuesday that the economy is broadly recovering, though some sectors have lagged and financial market depth has not yet returned to levels seen before the coronavirus pandemic. The bank pointed to the South American country's commercial, construction and real estate sectors as having fallen behind, which it said had elevated the possibility of defaults. "The external scenario continues to be the main source of risks for local financial stability," according to the bank. Meanwhile, the finances of local companies and individuals had broadly improved, it said in a half-year stability report. The monetary authority added that in the consumer sector, while more people were failing to meet mortgage payments, this remained at a relatively low level. Household finances were overall seen stabilizing thanks to rising incomes and smaller financial burdens, according to the report. The document stipulated that external macroeconomic risks highlight the importance of strengthening the resilience of local agents and the domestic financial market. It also flagged risks including from uncertainty regarding U.S. monetary policy and rising global debt. Chile's inflation rate, which hit 30-year-highs in 2022, has been converging to the bank's 3% target, pushing the bank to lower its benchmark interest rate from a high of 11.25% to its current level of 6.5%. The report comes a day after the central bank board unanimously voted to keep capital requirements for risk assets at their same level since last May, a measure intended to boost the economy's resilience in the face of severe stress scenarios. Sign up here. https://www.reuters.com/world/americas/chile-central-bank-says-economy-recovering-some-sectors-lag-2024-05-07/

2024-05-07 14:06

SAO PAULO, May 7 (Reuters) - Brazilian planemaker Embraer (EMBR3.SA) New Tab, opens new tab on Tuesday reaffirmed its full-year outlook after posting a smaller first-quarter net loss, while rebuffing speculation that it plans to develop a new jet. The world's third-largest planemaker after Airbus (AIR.PA) New Tab, opens new tab and Boeing (BA.N) New Tab, opens new tab said in a securities filing its quarterly adjusted net loss stood at $12.8 million, less than the $88.9 million loss it posted a year earlier. The improved results came in as Embraer delivered a total 25 jets in the period, 67% more than a year ago, leading its net revenues to jump 25% to $897 million in a period in which deliveries are seasonally weaker. Executive aviation stood out with the highest first-quarter revenues over the past eight years, the company said, noting its firm order backlog for all units hit a seven-year high on strong sales activity. "We currently have concrete sales campaigns for more than 200 aircraft across the world," CEO Francisco Gomes Neto told an earnings call, noting Embraer's availability of production slots from 2026 helps it as carriers face a global aircraft shortage. Embraer reaffirmed its estimates for 2024, including deliveries of 72 to 80 commercial aircraft and 125 to 135 executive jets, with total revenues expect to hit $6 billion to $6.4 billion. Gomes Neto noted that supply chain issues impacting planemakers have been improving, although some challenges remain with specific components, and said the firm should get back or very close to three-digit commercial jet production next year. Sao Paulo-traded shares of Embraer fell more than 2.5% after the quarterly results, but were still up roughly 50% year-to-date. JPMorgan analysts praised Embraer's results as "solid," highlighting that revenues hit their highest for a first quarter since 2018 and margins trended upwards. NO NARROWBODY Embraer, whose commercial portfolio includes regional jets and small narrowbodies, reiterated it has no plans at the moment to develop a larger single-aisle plane to rival the best-selling Boeing 737 and Airbus A320 families. Earlier this month, the Wall Street Journal reported Embraer was exploring options for a narrowbody jet to break out of its regional niche, where it competes with its E2 family for 90 to 120 passengers, below the Boeing and Airbus's 150-seat-plus market. Embraer last week played down the report, saying it had no plans for a sizeable cycle of capital expenditures right now. Gomes Neto said that although he fully understands the excitement over what he dubbed "media speculation," the company is focused on selling and delivering its existing portfolio of products. "We are now in our harvest season," he said. "We don't have concrete plans to develop or launch a narrowbody or other aircraft in the next few years." Industry sources say Embraer is trying to walk a fine line between talking up its relevance as a stand-alone planemaker without spooking investors over the cost of an assault on the mainline jet market, a strategy which resulted in its regional competitor Bombardier dropping out of the market. Any future plane developments would probably rely on a partner with deep pockets. "They are looking for brand awareness and stirring it up to see what comes their way," a senior industry source said. ($1 = 5.0758 reais) Sign up here. https://www.reuters.com/business/aerospace-defense/brazils-embraer-reports-smaller-adjusted-net-loss-q1-2024-05-07/

2024-05-07 12:46

May 7 (Reuters) - A swarm of tornadoes touched down overnight in Oklahoma, according to local media reports, killing at least one person and injuring at least five as they flattened homes and ripped down trees in the northeast corner of the state. As the morning sun rose over the area, fire crews were surveying the destruction and rescuing residents in Barnsdall and Bartlesville, two rural towns just north of Tulsa ravaged by the twisters, according to local news. Some 40 homes were damaged or destroyed and a natural gas leak was reported in Barnsdall, according to the Oklahoma Department of Emergency Management. One person died in the community of 1,000, according to KOCO News. Five others were injured in Bartlesville, a town of 30,000, the ABC affiliate in Oklahoma City reported. Video footage aired on local media and social media showed destroyed houses, downed powerlines and trees and debris strewn across roadways throughout the area. Some 16,000 homes and businesses were without power in Oklahoma, according to Poweroutage.us. Storm spotters reported 17 tornadoes touched down in the Plains region overnight, including eight sightings in Missouri, according to the National Weather Service, which has yet to confirm whether the damage or casualties were caused by tornadoes. The dangerous weather was expected to remain on Tuesday as some two million people in the region were under a tornado watch, the NWS said. Sign up here. https://www.reuters.com/business/environment/oklahoma-tornadoes-kill-least-one-person-injure-five-2024-05-07/

2024-05-07 12:32

May 7 (Reuters) - Global oil major Shell (SHEL.L) New Tab, opens new tab said on Tuesday that it remains "committed to the mobility business" in Malaysia, after a report that it was in talks with Saudi Aramco (2223.SE) New Tab, opens new tab to sell its gas stations in the country. Reuters reported on Monday, citing four industry sources aware of the discussions, that the talks began in late 2023 and a deal could be worth up to $1 billion. London-based Shell has about 950 fuel stations across Malaysia, according to its website, making it the second-biggest operator after state-owned Petronas. Shell also sells industrial lubricants, extracts crude oil and natural gas offshore of Sarawak and Sabah states and is a partner in two liquefied natural gas (LNG) joint ventures in the country. The reported sale is part of CEO Wael Sawan's efforts to focus on the most profitable parts of the company. Shell has said it will look to divest 500 gas stations this year and next. It is also in the process of selling its Singapore refinery and petrochemical complex. Saudi Aramco does not have fuel stations in Malaysia, although it owns 50% of the 300,000-barrel per day (bpd) Pengerang refinery in Johor in a joint venture with Petronas. Sign up here. https://www.reuters.com/business/energy/shell-says-it-remains-committed-mobility-business-malaysia-2024-05-07/

2024-05-07 12:09

May 7 (Reuters) - Mexico's automotive industry saw a jump in production in April while exports also increased from a year earlier, data from national statistics agency INEGI showed on Tuesday. Production increased by 21.74% to 358,575 vehicles and auto exports surged 14.38% to 289,756 vehicles, according to the agency. Sign up here. https://www.reuters.com/business/autos-transportation/mexicos-auto-production-exports-jump-april-2024-05-07/

2024-05-07 12:03

KABUL, May 7 (Reuters) - The Afghan Taliban said on Tuesday they have quelled protests in a northern province over security forces' attempts to eradicate opium poppy cultivation which generates income for many impoverished farmers. Taliban authorities were holding meetings in Badakhshan, spokesman Zabihullah Mujahid said in a Whatsapp message, after several days of protests, in which two people were killed. Mujahid said in a separate statement that a delegation from Kabul, led by the defence chief of staff, would this week travel to Badakhshan to investigate, a rare official acknowledgement of civil disturbance since the Taliban returned to power in 2021. Since then, they have vowed to restore control over the entire war-torn nation and have at times forcefully broken up protests in urban areas, especially against decisions that restrict women from education and many workplaces. "The Badakhshan issue can be solved," Mujahid said. "Two of our countrymen lost their lives during the clashes, their rights will be observed," he said, adding that authorities would meet with relatives and make a decision over compensation for their deaths. International research firm Alcis released research New Tab, opens new tab based on satellite data last year showing there had been a drastic reduction of opium production in most provinces between 2022 and 2023, often by more than 90%. However it noted that in Badakhshan, the amount of land used for poppy growing had grown. Mujahid did not elaborate on the cause of the deaths. Local broadcaster Tolo reported that the two had been killed as the protests became violent and security forces opened fire late last week. Zabihullah Amiri, head of the Taliban-run provincial government's media department, said that an official delegation from the provincial capital had travelled to the two districts to hold meetings and that the areas were now "under control". "They accepted the legitimate demands of the people, at the moment, there are no issues in Argo and Darayim districts,” he said. "The people and area are under the control of security forces, and the latest update is that people have committed to cooperating with security forces to eradicate poppy cultivation." The Taliban seized power in 2021 as the United States and its allies withdrew troops after a 20-year war launched in the weeks after the Sept. 11, 2001, attacks on the United States. In 2022, the Taliban's supreme spiritual leader ordered a ban on narcotics cultivation in the world's then-top opium producer. Many Afghan landowners and labourers rely on growing opium poppies, especially in the Taliban's historic heartland in the south. Badakhshan shares a border with Tajikistan and China, with which the Taliban are trying to improve economic links. The province's population is predominantly ethnically Tajik, in contrast to the Taliban, most of whose top leaders are ethnically Pashtun, which can exacerbate ethnic tensions despite Taliban promises they will govern the country in the interest of all Afghans. Sign up here. https://www.reuters.com/world/asia-pacific/taliban-say-order-restored-after-afghan-opium-poppy-protests-2024-05-07/