2024-03-13 21:02

March 13 (Reuters) - Electric vehicle startup Fisker (FSR.N) , opens new tab has hired restructuring advisers to assist with a possible bankruptcy filing, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. The company has hired financial adviser FTI Consulting and the law firm Davis Polk to work on a potential bankruptcy filing, according to the report , opens new tab. Fisker declined to comment. Earlier this month, Fisker flagged going-concern risks, job cuts and a pause in investments into future projects until it secures a partnership with a manufacturer. Nissan (7201.T) , opens new tab was in advanced talks to invest in Fisker in a deal that could provide the Japanese automaker with access to an electric pickup truck, Reuters reported earlier this month, citing two people familiar with the negotiations. Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. Sign up here. https://www.reuters.com/business/autos-transportation/ev-start-up-fisker-prepares-possible-bankruptcy-filing-wsj-reports-2024-03-13/

2024-03-13 20:51

NEW YORK/CHICAGO, March 13 (Reuters) - The U.S. Justice Department is investigating Archer-Daniels-Midland's (ADM.N) , opens new tab ethanol trading operation as part of a broader probe of the commodities giant's accounting practices, according to three people with knowledge of the matter. The U.S. Attorney's Office for the Southern District of New York (SDNY) is probing whether ADM improperly accounted for hedges in its ethanol trading unit, the three sources said. ADM, a $28 billion company that makes animal feed, sweeteners and other products, is also a large producer of ethanol, a biofuel made from corn. ADM this week confirmed Reuters reports that the Justice Department is investigating accounting practices related to ADM's Nutrition unit and that current and former employees had received grand jury subpoenas relating to that probe. The Chicago-based company said the investigation was "focused primarily" on the Nutrition business. The DOJ probe into ADM's ethanol trading operation was not previously reported. The additional scrutiny indicates that the Justice Department is taking a broader look at ADM's accounting practices than previously reported - another challenge for the company as it seeks to restore investor confidence. A spokesperson for ADM said the company declined to comment on the government investigation beyond what it disclosed on Tuesday. A spokesperson for SDNY also declined to comment. ADM said this week it was cooperating with authorities. Government investigations are not evidence of wrongdoing and do not necessarily result in charges. ADM shares pared gains on Wednesday to close up 2% at $58.27. They have dropped about 15% since the firm disclosed in late January that it had suspended its chief financial officer and was delaying financial results amid an internal probe into its Nutrition division accounting. The company's investigation was prompted by a Securities and Exchange Commission (SEC) inquiry, ADM said at the time. The company said the SEC inquiry focused on sales between the Nutrition division and its Agricultural Services & Oilseeds and Carbohydrate Solutions units. On Tuesday, ADM corrected financial transactions between the units for its 2018 to 2023 financial statements, saying it had overstated the Nutrition unit's operating profit. It said the changes did not impact its overall results. ADM competitors have sued the company in recent years over its ethanol business. One high-profile lawsuit brought by Switzerland's AOT Holding alleges that ADM manipulated the price of ethanol to profit from short positions it was holding in the derivatives market. ADM has denied the allegations and is fighting the case, court records show. According to a January 2023 federal court filing in that case, an ADM employee from the ethanol trading unit disclosed he violated ADM's accounting policy related to hedging treatment. The Commodities Futures Trading Commission (CFTC) and CME Group (CME.O) , opens new tab, which lists ethanol futures, had ongoing inquiries into matters raised in the AOT case as of 2019, according to a 2023 court filing and to a separate source familiar with the matter. The status of those inquiries was not immediately clear. AOT declined to comment. Spokespeople for the CFTC and CME Group declined to comment. 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-justice-department-is-also-probing-adms-ethanol-trading-desk-sources-say-2024-03-13/

2024-03-13 20:36

March 13 (Reuters) - Lennar Corp (LEN.N) , opens new tab reported first-quarter profits above Wall Street estimates on Wednesday, as historically low existing home supply led to sustained demand for new home construction. "Macroeconomic environment remained relatively consistent throughout the quarter, with interest rates fluctuating within a manageable range, employment remaining strong, housing supply remaining chronically short due to production deficits over a decade, and demand strength driven by strong household formation," said Stuart Miller, Lennar's co-chief executive officer. The second-largest U.S. homebuilder's reported earnings of $2.57 per share surpassing analysts' average estimate of $2.20 per share and above $2.06 per share a year earlier. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/business/us-homebuilder-lennar-beats-q1-profit-estimates-higher-home-deliveries-2024-03-13/

2024-03-13 20:29

HOUSTON, March 13 (Reuters) - The U.S. Federal Energy Regulatory Commission (FERC) on Wednesday asked Venture Global LNG to explain why reports on its Calcasieu Pass LNG plant need to be kept confidential, a development that came after major customers complained about its lack of transparency. The request was regulators first response to months of filings from customers - including BP (BP.L) , opens new tab, Edison (EDNn.MI) , opens new tab, and Shell (SHEL.L) , opens new tab - seeking its help in a dispute over whether the Louisiana plant's operations can fulfill their contracts. The customers have protested that they have not received sufficient explanations for the delay, which they say has cost them billions of dollars in profit. Venture Global LNG says the contracts allow it to decide when commercial operations begin. Venture Global LNG has filed documents on plant construction and repairs confidentially under national security provisions that deprived them of key information on its operations, the customers said in requests to FERC. The Arlington, Virginia-based LNG exporter has previously said it will not provide its customers with the privileged documents unless FERC required it. The FERC request comes days after Venture Global customers challenged the company's request for a one-year extension of its startup process and urged regulators to make Venture Global release the confidential commissioning documents. PROTECTIVE ORDER Venture Global "remains committed to compliance with all FERC requirements" and will promptly provide a request for a protective order at Calcasieu Pass laying out grounds for confidentiality, a company spokesperson said on Wednesday. Such orders have not previously been necessary because there were no objections involving the plant, the spokesperson said. Shell, one of the companies that has asked FERC to make the documents public, disagreed and hopes the regulator will bar further unnecessary confidential filings, a spokesperson said. Venture Global's making Calcasieu Pass filings non-public for nearly a decade does not meet regulations and "is consistent with company’s complete disregard for transparency," the Shell spokesperson said. Two other Venture Global customers, Repsol (REP.MC) , opens new tab and Galp Energia (GALP.LS) , opens new tab told FERC they were unable to take a position on the extension because the lack of access to the documents made it impossible to assess the request. 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/us-asks-venture-global-lng-justify-filing-confidential-documents-2024-03-13/

2024-03-13 20:28

TSX ends up 0.6% at 21,970.11 Commodity-linked shares gain Oil settles 2.8% higher Gold and copper prices climb March 13 (Reuters) - Canada's commodity-linked main index advanced on Wednesday for a third straight day, benefiting from higher commodity prices and the continued expectation that central banks will move this year to lower interest rates. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended up 139.09 points, or 0.6%, at 21,970.11, its highest closing level since April 2022. "There is still momentum here ... despite the fact that we haven't seen rate cuts, I think the market has come to an appreciation that we're at peak rates," said Sadiq Adatia, Chief Investment Officer, BMO Asset Management. Investors have stuck with bets that the Federal Reserve and Bank of Canada will begin interest rate cutting campaigns in the coming months despite data on Tuesday showing a faster pace of U.S. inflation. The continued strength of the jobs market, which can discourage rate cuts, has also been a tailwind for the market, Adatia said. The materials group, which includes precious and base metals miners and fertilizer companies, rose 3% as gold and copper prices climbed. The move for copper came as Chinese smelters, which process half of the world's mined copper, agreed on a joint production cut. The price of oil also rose, settling 2.8% higher at $79.22 a barrel. That helped lift the energy sector to a 1.7% gain, while technology added 0.8%. 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/tsx-futures-signal-subdued-start-traders-await-more-rate-cut-cues-2024-03-13/

2024-03-13 20:17

Canadian dollar up 0.1% against the greenback Trades in a range of 1.3460 to 1.3498 Price of U.S. oil settles 2.8% higher Canadian bond yields rise across the curve TORONTO, March 13 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Wednesday, supported by higher oil prices and recent signaling from the Bank of Canada it is in no rush to cut interest rates. The Canadian currency was trading 0.1% higher at 1.3470 per U.S. dollar, or 74.24 U.S. cents, after trading in a range of 1.3460 to 1.3498. The currency recovered the ground it lost after heated U.S. inflation data on Tuesday. "The loonie's momentum clearly remains in the bullish direction after the Bank of Canada poured cold water on imminent rate cuts last week," said Kyle Chapman, FX markets analyst at Ballinger & Co in London. Last Wednesday, the Bank of Canada said it was too early to consider easing policy as it kept its benchmark interest rate on hold at a 22-year high of 5%. The price of oil , one of Canada's major exports, settled 2.8% higher at $79.22 a barrel on Wednesday after a surprise withdrawal in U.S. crude inventories. Canadian government bond yields moved higher across the curve, tracking moves in U.S. Treasuries. The 10-year was up 2.6 basis points at 3.427%. Canadian manufacturing sales data for January, due on Thursday, could offer clues on the strength of the economy. Economists expect sales to rise 0.4%. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-edges-higher-oil-prices-jump-2024-03-13/