2024-04-16 23:43

GUANGZHOU, China, April 17 (Reuters) - Wu Huazhan's Chinese television factory used to impose minimum orders to manage production efficiently. Times are now so bleak, it will take any order. Foshan Top Winning Import & Export's profit margin has dropped to a wafer-thin 0.5% from 2% some 3-4 years ago, according to Wu, a co-owner of the Guangdong-based factory and one of the many exporters fretting about business prospects at China's biggest trade fair in the southern city of Guangzhou. "We're selling electrical appliances as cheap as cabbage," he added. "If it continues for another year or two, we'll have to change careers." The sombre mood at the twice-a-year Canton Fair scarcely got a lift from data on Tuesday showing that the world's second-largest economy grew at a faster-than-expected 5.3% in the first quarter. A sharp contraction in Chinese exports for March in dollar terms despite growth in volumes and data showing producer prices extending a year-and-a-half-long decline have tempered hopes that China is on its way to finding sustained post-pandemic growth. Chinese exporters are having to contend with heightened economic and political tensions between Beijing and Washington as well as a slowdown in global trade due to the war in Ukraine and a worsening Middle East crisis. The manufacturing sector is also plagued by excess capacity. In one encouraging sign, the number of foreign buyers attending the fair on Monday and Tuesday has jumped by about a fifth from the first two days of the last one in October, according to organisers. But some attendees said business felt slower. "On the first day last year, I received more than a dozen inquiries, but today I only received three business cards," said Lois Zhang, sales manager at Enping City Shuangyi Electronics Industrial, which produces speakers and microphones. A manager at an outdoor heater manufacturer based in Jiangsu province said he didn't have a lot of hope for his European and North American markets, where most of his clients are based. "One of our large customer's orders this year was 25% lower than last year and other customers have yet to decide whether they want to keep placing orders," said Fan, who asked that only his surname be used so he could speak openly about business prospects. Fan said his customers were still running down their inventories and he hoped their orders would pick up later this year. The potential for further trade tensions with the United States and Europe is also a key worry. Former U.S. President Donald Trump has threatened 60% tariffs on Chinese imports if he beats incumbent Joe Biden in upcoming elections. "Whether it's Biden or Trump there's a real feeling of instability," said Pan Feng, sales manager at tumble dryer maker Jiangmen Jinhuan Electrical. In particular, U.S. and European officials have stepped up complaints that China's strategic push to strengthen and upgrade its manufacturing complex exacerbates industrial overcapacity and drives down prices to levels other economies can't compete with. However, some of the higher-tech manufacturers at the fair were more upbeat. Xiao Yanmei, general manager of Guangdong Doni Intelligent Robot Engineering, which makes self-navigating machines that disinfect factory floors or distribute parts to assembly lines, said her business grew 10-20% in the first quarter. Xiao said government support for the advanced manufacturing sector was strong, including tax rebates and funds for equipment upgrades. "When our country channels its national strength to develop an industry, the forces can be very powerful," she said. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/commodities/chinese-trade-fair-exporters-despair-their-goods-are-as-cheap-cabbage-2024-04-16/

2024-04-16 23:21

SANTIAGO, April 16 (Reuters) - Rio Tinto (RIO.L) New Tab, opens new tab, (RIO.AX) New Tab, opens new tab aims to keep all of the copper from its Resolution mine inside the United States should the long-delayed and controversial project win regulatory approval, a senior executive said on Tuesday. The Arizona mine would, if developed, over its life produce more than 40 billion pounds (18.1 million metric tons) of copper and supply more than a quarter of U.S. demand, but it is strongly opposed by some Native Americans New Tab, opens new tab given concerns the project could destroy a site of religious and cultural import. That has placed Resolution at the center of a simmering debate about where best to secure copper and other critical minerals for the clean energy transition. Some of Resolution's opponents have repeatedly alleged that Anglo-Australian miner Rio would export the project's copper, but the company sees strong demand inside the United States, Bold Baatar, head of Rio's copper business, said in an interview on the sidelines of the World Copper Conference in Santiago. "Certainly if Resolution comes on stream, all of that copper we would like it to be sold in the U.S.," he said. Rio operates Utah's Kennecott copper mine and smelter, with all of its production consumed inside the country. The only other U.S. copper smelter is operated by Freeport-McMoRan (FCX.N) New Tab, opens new tab. A Native American group on Monday asked all members of a U.S. appeals court to overturn an earlier ruling that granted land to Rio and minority partner BHP (BHP.AX) New Tab, opens new tab to develop Resolution. U.S. President Joe Biden had separately paused a regulatory decision on the project in 2021. Baatar said he would be tracking the court case. He and Rio have long said they believe Resolution can be developed safely. "The U.S. is endowed with the resources. It's probably one of the most stringent environmental, legal and regulatory frameworks in the world," Baatar said. "I think the U.S. will be making a choice between 'in our backyard' or 'in somebody else's backyard.' But there's no security of supply if it's somebody else's backyard." SUPPLY AND DEMAND The global copper industry has in recent years faced rising opposition to a slew of projects, including Resolution as well as First Quantum's (FM.TO) New Tab, opens new tab Cobre Panama, which Panamanian officials forced to close last year, taking 1% of the world's supply of the red metal offline. That has sparked concerns from Baatar and other industry executives about how the world can obtain the copper needed for the energy transition. Given growing appetite for copper from the personal electronics industry, as well as for use in artificial intelligence technologies, prices are expected to jump more than 30% in coming years, analysts say. "(Copper) demand is really the least of the issues at the moment. I think it's the supply side," said Baatar, who will become Rio's chief commercial officer later this year in a move widely seen as positioning him to eventually become its CEO. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/commodities/rio-tinto-aims-keep-resolutions-copper-us-executive-says-2024-04-16/

2024-04-16 23:19

April 16 (Reuters) - The Biden administration is set to reject the construction of an access road to the Ambler mining district in northern Alaska, Politico reported on Tuesday, citing two people with knowledge on the decision. The U.S. Interior Department's recommendation to end the project in its current form could come in an environmental analysis due later this week, the report said. The Interior Department did not immediately respond to a Reuters request for comment. The Ambler project sought to open a remote area rich in copper, zinc and lead and could yield deposits of rare earths used in weapons manufacturing. Trilogy Metals (TMQ.TO) New Tab, opens new tab is one of the region's potential developers. Alaska Governor Mike Dunleavy, a Republican, has been pushing Democratic President Joe Biden to approve construction of the road project. Get weekly news and analysis on the U.S. elections and how it matters to the world with the newsletter On the Campaign Trail. Sign up here. https://www.reuters.com/world/us/us-reject-access-road-northern-alaska-mining-district-politico-reports-2024-04-16/

2024-04-16 23:05

Both big manufacturers, services mood down China economy also denting sentiment Business confidence is key for BOJ's policy outlook path TOKYO, April 17 (Reuters) - Business confidence at big Japanese manufacturers and services sector firms slid in April from the prior month, dragged down by cost-of-living pressures and shaky economic conditions in major market China, a Reuters monthly poll showed. The yen's weakening to levels unseen since 1990 during the heyday of the asset-inflated bubble is lifting the cost of imports in a blow to household consumption, according to the Reuters Tankan survey. Moreover, while the fall currency has boosted the value of exports, volume of shipments have not benefited as much, the survey found. The Reuters Tankan sentiment index for manufacturers stood at plus 9, down from the previous month's 10, dragged down by chemicals and food processing. The services sector index fell to plus 25 from plus 32 in the previous month, despite some gains by retailers. The survey, conducted April 3-12, found that both sectors' sentiment indexes improving slightly over the coming three months. The monthly Reuters Tankan, which closely tracks the Bank of Japan's quarterly tankan survey, was conducted during the time the Japanese currency hit its 34-year lows to the dollar beyond 153 yen. That has prompted repeated warnings from authorities that they stood ready to take action against speculative or destabilising currency moves. The dollar broke above 154 yen this week. "Our sales appear to be boosted due to the impact of a weak yen, but there's no sign of recovery in terms of volume," a manager of a chemicals maker wrote in the survey on condition of anonymity. The Reuters Tankan canvassed 497 large non-financial Japanese firms, of which 235 responded during the survey period. "Japanese firms on the whole may be riding momentum towards pay raise, but price hikes have sapped consumers' appetite for purchasing items such as food and daily goods," wrote a chemical firm's manager. On top of the fragile domestic demand, external factors were also cited as a source of concern for Japanese firms. "Demand has not stabilised due to delay in China's economic recovery and uncertainty over the outlook such as decoupling between U.S. and Chinese economies," a manager of a paper/pulp maker wrote in the survey on condition of anonymity. The BOJ's last tankan showed on April 1 services sector optimism hit a 33-year high in the first quarter on inbound tourism and rising profits from price hikes. But that was offset to some extent by same survey's findings of sliding sentiment for big manufacturers for the first time in four quarters. On Monday, data showed Japan's core machinery orders - a key gauge of capital spending - rebounded sharply in a welcome sign for domestic demand. Yet, the overall economic impulse so far this year has pointed to insufficient demand in the economy to mount a robust recovery in the near term. That's one reason why the Bank of Japan has flagged a cautious track to further monetary tightening following its landmark decision to end negative interest rates last month. The Reuters Tankan indexes are calculated by subtracting the share of pessimistic respondents from optimistic ones. A positive figure means optimists outnumber pessimists. Get a look at the day ahead in Asian and global markets with the Morning Bid Asia newsletter. Sign up here. https://www.reuters.com/markets/asia/japan-firms-business-mood-slips-weak-yen-squeezes-households-2024-04-16/

2024-04-16 23:03

MEXICO CITY, April 16 (Reuters) - Mexican telecommunications giant America Movil's (AMXB.MX) New Tab, opens new tab net profit tumbled 55.2% year-on-year, landing at 13.5 billion pesos ($816.7 million), earnings showed on Tuesday, as a stronger peso and lack of extraordinary income diluted first-quarter results. The company, controlled by the family of Mexican billionaire Carlos Slim, reported revenue of 203.3 billion pesos ($12.3 billion) in the quarter, down 2.7% from a year earlier. Revenue beat the mean estimate of $11.87 billion from four analysts, based on LSEG data. The company blamed the weaker results on currency fluctuations as a stronger Mexican peso watered down earnings from abroad. The peso gained around 8.2% compared to the end of the first quarter of 2023. America Movil also cited the previous sales of cell phone towers in the Dominican Republic and Peru, which bumped up extraordinary income in the first quarter of 2023. "This quarter, there were practically no tower sales," the firm said in its filing to the Mexican stock exchange. America Movil's core earnings, or earnings before interest, taxes, depreciation and amortization (EBITDA), fell 2.6% in the quarter to 80.6 billion pesos. It added 1.5 million mobile subscribers, including 1.3 million post-paid customers, driven by an uptick in Brazilian customers. In the fixed-line segment, the company added 562,000 broadband accesses. The company said its net financing of 17.4 billion pesos and operating cash flow covered 21.8 billion pesos in capital expenditures, 4.8 billion pesos in share buybacks and 6.5 billion pesos in labor obligations. The company in March added a five-year bond to its global local currency bond program with an issuance of 17.5 billion pesos. International investors made up nearly a third of the transaction, the company said. The bonds issued under the program since June 2023 amount to 54.5 billion pesos. ($1= 16.5310 Mexican pesos at the end of March) The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/business/media-telecom/mexicos-america-movil-q1-net-profit-tumbles-over-50-year-on-year-2024-04-16/

2024-04-16 23:00

April 16 (Reuters) - A section of TC Energy's (TRP.TO) New Tab, opens new tab NGTL gas pipeline system in Alberta ruptured and caught fire on Tuesday, sparking a wildfire in a remote area, the company said. "An initial ignition of natural gas at the rupture site is now extinguished. We are working to support Alberta Wildfire in their response to contain a secondary fire," the company said in a statement on its website. TC said there were no injuries and it was working closely with first responders in the region. The fire broke out about 40 km (25 miles) northwest of Edson, Alberta, in Yellowhead County. Canadian broadcaster Global News said there was a plume of flames and smoke visible from many kilometres away. The Canada Energy Regulator (CER) said initial investigations indicated a rupture in a gas pipeline caused the fire, which was under control. TC Energy said it has isolated and shut down the affected section of the NGTL system, and the remainder of the system is operating normally with no commercial impact. The CER said it is sending inspectors to the area to monitor and oversee the company’s response and determine the impact of the incident. NGTL is TC Energy's natural gas gathering and transportation system that transports gas produced in Western Canadian Sedimentary Basin (WCSB) to markets in Canada and United States. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/americas/tc-energy-gas-pipeline-triggers-wildfire-alberta-media-report-2024-04-16/