2024-03-18 12:49
OXNARD, Calif., March 18 (Reuters) - Most U.S. recreational vehicles - those behemoths of the roadway often resembling box cars that accidentally wandered off the rails - roll out of gritty factories in the gray environs of Elkhart, Indiana, and aim to satisfy the wanderlust of largely middle-income customers. Then there's the Bowlus, a very expensive travel trailer that can be towed by a Porsche sports car, no pick-up truck required. Produced in the beach-front community of Oxnard, Calif., sporting 100 more days of sunshine in a year than Elkhart, it breaks most of the RV norms with a curvy 1930s design that sweeps back to a pointed tail, a minimalist interior, and a price tag for its top-end model - at $310,000 - that is equal to 80% of the cost of a typical single family home. Bowlus shows that rich people really are different, at least when it comes to spending habits. Wealthy Americans have helped keep the U.S. economy rolling even as the Federal Reserve hiked interest rates to curb inflation, spending heavily on cars, houses, and travel. Demand for the Bowlus surged during the COVID-19 pandemic, along with all RVs. But as RV sales skidded - shipments of travel trailers plunged nearly 40% last year as the health crisis eased, according to the RV Industry Association - Bowlus kept selling every trailer it could make. Now the company is expanding by offering a lower-priced version and selling through dealerships for the first time. 'A MINDSET' The mood of households in the top 25% of the income distribution has consistently run ahead of lower-earning groups since the start of last year, according to the University of Michigan’s closely watched sentiment gauge. In the latest fourth quarter, it stood at 71.3, while the comparable figure for the bottom 25% was 59.6. "We also didn’t overproduce" during the pandemic, said Geneva Long, Bowlus’s CEO, when asked why her business held up while so many other producers struggled. One problem for the RV industry is that most factories hiked production during the pandemic to an unsustainable level and were then stuck with parking lots full of unsold trailers when demand suddenly cooled. To be sure, it would be hard for Bowlus to overproduce. The factory, tucked in the back of a manicured industrial park here, only has room for 10 trailers on its main assembly line. The company won't discuss its financials, other than to say it plans to make 100 trailers this year--and then "expand every year while holding quality," said Long. And creating them is slow and painstaking. Bowlus’s 35 workers hand fashion the cabinetry, sew the seats made from a high-tech Japanese fabric, and hand rivet and polish the aluminum. The result is a trailer that lacks many of the amenities sought after in other expensive RVs, like spacious bathrooms or walls that slide out to create larger interior spaces. Long said her customers appreciate the simplicity and the quality of her product. She's also a bit of purist about camping culture--even the $310,000 model doesn't come with a TV. However they plan to offer that as an option on all trailers going forward. "People who buy a Bowlus are the same people who buy airplanes, so it’s a mindset," she said. Other producers are jumping into the niche--including a battery-powered trailer being developed by another California company run by former tech executives. 'COKE BOTTLE' The Bowlus was first designed by a Los Angeles aerospace engineer during the Great Depression, who applied then-cutting edge airplane construction techniques - giving it a distinctive aluminum outer shell and aerodynamic flare. He only built a handful before shutting down. Fast forward to 2014, when Long's family revived the brand and started selling trailers in the same quirky shape as the original, with a pointed tail and its door at the front end. The company has trademarked the shape. Long says it’s iconic, "like the Coke bottle." Bowlus is among the few RVs to use a structural system called monocoque - French for "single shell." Like an airplane, a Bowlus is built with a complete outer skin of aluminum, including on the bottom, which avoids the need for a heavy frame and makes the trailers extremely light but strong. A Bowlus weighs about half as much as an equally long Airstream. NOT ALONE Bowlus is also part of a growing niche of smaller producers as well as old-line manufacturers who are developing new battery-powered trailers. Aero Build, in Nashville, Tenn., has started selling 21-foot trailers with solar panels covering the roof. Like the Bowlus, it’s aimed at wealthier buyers. "We spare no expense on fit and finishes," said CEO Brian Fuente. "Everything down to the frame is designed to last generations." The price tag: $129,900. Another startup, called Pebble, is developing a trailer powered by batteries that also help propel it down the highway, which increases range of the vehicle pulling it. One of the concerns with traditional RVs is that their heavy weight degrades the range of EVs as towing vehicles. The Pebble starts at about $109,000, while Bowlus’s new, slightly shorter model lists for $165,000. "The question we’re all trying to ascertain is what is the market for a high-end product like this," said John North, CEO of Lazydays RV which operates 25 dealerships across the U.S. and just started offering Bowlus in five of them. "We've had a number of customers interested," he said, but, less than two months in, he's still waiting for his first sale. Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. 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2024-03-18 12:46
DOICESTI, Romania, March 18 (Reuters) - Romania expects to make a preliminary final investment decision next year on whether to build a small modular reactor plant (SMR), which could become Europe’s first project using the technology, Energy Minister Sebastian Burduja said on Monday. State-owned nuclear power producer Nuclearelectrica (ROSNN.BX) , opens new tab said in 2021 it will partner with U.S. utility firm NuScale Power (SMR.N) , opens new tab to build reactors as part of its efforts to boost low-emission power sources. Romania is aiming to lower its carbon emissions to meet the EU's emissions reduction goals and to bolster energy security, a more urgent issue since Russia's invasion of Ukraine in February 2022. NuScale aims to build SMRs in Romania, Poland and elsewhere in Europe, although it has terminated its SMR project in Utah in the U.S. late last year as it faced cost and subscription issues. Burduja said the Romanian project could be up to a third cheaper then the Utah project based on NuScale estimates. On Monday, U.S. Ambassador Kathleen Ann Kavalec said the Romanian project has financial support worth $4 billion from United States Exim Bank and the United States International Development Finance Corporation. Nuclearelectrica chief executive Cosmin Ghita said prospective investors were also interested in providing equity for the project. SMRs are meant to fit new applications such as replacing shut coal plants and are easier to scale than traditional reactors. Romania uses a mix of gas, coal, hydro, nuclear and renewables for electricity generation and has committed to phasing out lignite - or brown coal – under its EU-funded recovery aid package. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. https://www.reuters.com/business/energy/romanias-nuclearelectrica-sees-preliminary-decision-smr-plant-2025-2024-03-18/
2024-03-18 12:40
COPENHAGEN, March 18 (Reuters) - A volcano in Iceland that erupted on Saturday for the fourth time since December was still spewing smoke and bright orange lava into the air on Monday although infrastructure and a nearby fishing town were safe for now, authorities said. Magma had been accumulating underground on the Reykjanes peninsula near Iceland's capital Reykjavik since the last eruption in February, prompting authorities to warn of an imminent eruption. The warning time late on Saturday was only 15 minutes before fountains of molten rock began soaring from a 3 km-long (1.9 mile) fissure, roughly the same size and at the same place as the previous eruption. Around noon on Monday (1200 GMT), lava flows had subsided in one of the three areas that had been active the previous day, the Icelandic Meteorological Office said in a statement. Man-made barriers have been successful in steering the lava away from infrastructure including the Svartsengi geothermal power plant and Grindavik, a fishing town of some 4,000 residents. Footage from public broadcaster RUV showed lava flowing a few hundred metres from the town which was evacuated during an eruption in November and again during another one in February. "The defences at Grindavik proved their value ... they have guided the lava flow in the intended direction," local utility HS Orka said, adding that infrastructure running to the Svartsengi power plant was intact. Lava had over the weekend flowed over one of the three roads going into Grindavik, and on Monday, it inched south towards another road into the town. The lava looked unlikely to reach the sea, the met office said. Strong winds carried hazardous gases from the volcano towards the northwest, but were unlikely to reach Reykjavik, it added. Reykjavik's Keflavik Airport said it remained fully operational. The eruption was the seventh on the Reykjanes peninsula since 2021 when geological systems that had lain dormant for around 800 years again became active. Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here. https://www.reuters.com/business/environment/iceland-volcano-still-pouring-out-fountains-lava-2024-03-18/
2024-03-18 12:35
March 18 (Reuters) - Saudi Arabia's crude oil exports fell in January for a second straight month, data from the Joint Organizations Data Initiative (JODI) showed on Monday. Crude exports from the world's largest oil exporter dipped 0.2% to 6.297 million barrels per day (bpd), down from 6.308 million bpd in December. The country's crude production rose to 8.956 million bpd from 8.944 million bpd in December. Monthly export figures are provided by Riyadh and other members of the Organization of the Petroleum Exporting Countries (OPEC) to JODI, which publishes them on its website. Data also showed that Saudi refineries' crude throughput edged up 0.010 million bpd to 2.425 million bpd and direct crude burning rose by 5,000 bpd to 308,000 bpd in January. OPEC and its allies, known as OPEC+, this month agreed to extend voluntary output cuts of 2.2 million bpd in a bid to boost prices. Meanwhile, the International Energy Agency raised its view on 2024 oil demand growth for the fourth time since November, though it remains far less bullish than OPEC. Earlier this month, Saudi Arabia slightly raised the official selling price of its flagship Arab Light crude to Asia for April, in line with market expectations. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. https://www.reuters.com/business/energy/saudi-crude-exports-fall-second-straight-month-january-2024-03-18/
2024-03-18 12:32
March 18 (Reuters) - Producer prices in Canada rose by 0.7% in February from January on higher prices for energy and petroleum products, as well as chemicals and chemical products, Statistics Canada said on Monday. The increase followed a 0.1% decrease in January. Raw materials prices were up 2.1% in January, and were down 4.7% on the year. INDUSTRIAL PRODUCT PRICES (pct change) Month-on-month Year-on-year Feb Jan(rev) Jan(prev) Feb Jan(rev) Jan(prev) total +0.7 -0.1 -0.1 -1.7 -2.9 -2.9 ex energy/petrol +0.1 +0.1 +0.1 -1.0 -1.0 -1.0 RAW MATERIALS PRICE INDEX (pct change) Month-on-month Year-on-year Feb Jan(rev) Jan(prev) Feb Jan(rev) Jan(prev) total +2.1 +1.2 +1.2 -4.7 -6.5 -6.4 ex crude energy +0.1 +0.2 +0.2 -2.4 -1.7 -1.7 Keywords: CANADA ECONOMY/PRODUCER PRICES 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/canada-february-producer-prices-up-07-petroleum-chemicals-2024-03-18/
2024-03-18 12:31
LONDON, March 18 (Reuters) - Bank of England policymaker Catherine Mann, the staunchest advocate for higher interest rates on the Monetary Policy Committee, has been re-appointed to serve a second three-year term, the finance ministry said on Monday. The U.S. economist was one of two members of the MPC who voted against the majority last month to raise interest rates - which are currently at their highest since 2008 - to see off inflation risks. She will now serve on the committee until Aug. 31, 2027, the finance ministry said in a statement. Last week Mann said Britain has a long way to go for inflation pressures to be consistent with the BoE's 2% target, the latest in a long run of warnings from her about the risk of price pressures becoming embedded in the economy. Her stance differs from the consensus among BoE rate-setters, who have put the high level of Bank Rate, currently 5.25%, "under review". The BoE's next interest rate decision is due this Thursday. Analysts expect Mann will vote again for an interest rate hike in another 6-2-1 split, resulting in a fifth consecutive "hold" decision - although inflation data on Wednesday could cause a late rethink. Mann is one of the MPC's most experienced economists, having previously served as chief global economist at both Citi and the Organisation for Economic Co-operation and Development. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/uk/bank-englands-mann-reappointed-monetary-policy-committee-2024-03-18/
