2024-03-08 22:42

SANTIAGO, March 8 (Reuters) - Chilean state-owned mining company Codelco said that a worker died in an accident on Friday afternoon at Radomiro Tomic copper mine in the country's north. Activities were suspended at the area of the mine where the accident occurred, the company said in a statement. The worker, a 30-year-old woman, was operating an extraction truck when the accident occurred, Codelco said. In 2020, a 33-year-old operator who worked an extraction truck was also killed in an accident at Radomiro Tomic. Chile is the world's largest copper producer. As demand for the red metal grows globally, Codelco is struggling to address falling output, maintenance woes and safety issues. In June 2023, an electrical accident at Codelco's El Teniente mine in central Chile left one worker dead, while in July 2022, two workers died in separate accidents at Codelco's Chuqui Subterranea and Rajo Inca projects. https://www.reuters.com/world/americas/worker-dies-accident-codelcos-radomiro-tomic-mine-northern-chile-2024-03-08/

2024-03-08 22:37

March 8 (Reuters) - Rivian's (RIVN.O) , opens new tab shares closed more than 2% higher on Friday as its cheaper R2 SUV racked up tens of thousands of reservations within hours of its launch, fueling optimism that the electric-vehicle maker could expand in the mass-market segment. Unveiled on Thursday, the smaller R2 SUV, which will start at $45,000, has attracted more than 68,000 reservations, CEO RJ Scaringe said in a post on X. Analysts also said that the Amazon-backed (AMZN.O) , opens new tab EV maker's plan to produce the R2 at its existing U.S. factory and pause the construction of its second factory in Georgia may result in cost savings that will delay further fundraise. The pause in its Georgia plant is expected to drive additional savings of more than $2.25 billion for Rivian compared to its prior forecast. It will also hasten R2 deliveries to the first half of 2026. Cost savings will leave the company with enough cash on hand through R2's start of production, "relieving considerable pressure to raise capital in the near term," Deutsche Bank analyst Emmanuel Rosner said. The Illinois plant, where Rivian also makes its electric delivery vans, can produce 215,000 vehicles year after production of the R2 starts, the company said on Thursday. "With this new product, Rivian can potentially break more into the mass market segment, which represents about half of total U.S. auto sales," said analysts at Bank of America. In a surprise move, the company also introduced the R3 and a more powerful R3X variant on Thursday. The R3 will be cheaper than the R2 and will be launched after it. The reveals come when EV demand is rising at a slower pace than automakers had expected, weighing on shares of the companies this year. Rivian's stock had nearly halved in value this year, before the launch on Thursday. After Friday's close, Rivian's market value stands at $12.49 billion, around $264 million more than its close on Thursday. Since the R2 launch event, Rivian's market value has increased by more than $1.7 billion. Meanwhile, market leader Tesla (TSLA.O) , opens new tab has slashed prices to spur sales and is also pursuing a cheaper model. "Given Tesla has shown little ambition to move into the SUV space, Rivian could be one of the few EV SUVs on the market that most investors will likely want to buy over the next 3-4 years," Evercore ISI analyst Chris McNally said in a note. https://www.reuters.com/business/autos-transportation/rivian-surges-new-launch-r2-suv-attracts-strong-early-orders-2024-03-08/

2024-03-08 22:29

March 8 (Reuters) - The U.S. Food and Drug Administration approved Novo Nordisk's (NOVOb.CO) , opens new tab weight-loss drug Wegovy on Friday for lowering the risk of stroke and heart attack in overweight or obese adults who do not have diabetes. Novo's widely used diabetes drug Ozempic and weight-loss drug Wegovy, both chemically known as semaglutide, belong to a class of drugs called GLP-1 agonists. Originally developed for type 2 diabetes, they also reduce food cravings and cause the stomach to empty more slowly. Patients who are obese or overweight are at "a higher risk of cardiovascular death, heart attack and stroke. Providing a treatment option that is proven to lower this cardiovascular risk is a major advance for public health," said John Sharretts, FDA's director of the Division of Diabetes, Lipid Disorders, and Obesity. Millions of people already take Novo's GLP-1 drugs, but the FDA's stamp of approval for the heart benefits is likely to open their use to more patients. Dr. Chad Weldy, a cardiologist at Stanford University, said he typically deferred to the primary care team to initiate and monitor therapy with drugs like Wegovy in the past, but said that likely is going to need to change. "Cardiology groups will need to fully incorporate these therapies into clinic and build a clinical workflow to manage dose escalation, side effects, and insurance approval," he said. Healthcare professionals should monitor patients taking the medicine for kidney disease, diabetic retinopathy and depression or suicidal behaviors or thoughts, the FDA said. The Danish drugmaker published the full data in November from a large clinical trial that showed the obesity drug reduced the risk of non-fatal heart attack by 28%, non-fatal stroke by 7% and heart-related death by 15%, compared with a placebo, in patients with pre-existing heart conditions. In the 17,604-patient trial with a mean duration of 33 months, the difference in heart protective benefits began to appear almost immediately after starting treatment in those who received Wegovy, researchers said, suggesting the positive impact was due to more than weight loss. The FDA's approval of the new cardiovascular indications could give employers and insurers more reason to cover the drug despite its high cost. Wegovy carries a list price of $1,349 for a package with a month's worth of shots. Health regulators can expand approved uses of medicines if new data shows them to be effective in other therapeutic areas after initial approval. Dr A. Michael Lincoff of the Cleveland Clinic, who led the Wegovy heart trial, said with FDA recognition of the benefits, he hoped it would become as commonly prescribed as drugs for high cholesterol, blood pressure, and diabetes. Novo's application for adding Wegovy's heart benefits to its European approval is currently under review by the European Union's drug regulator. It expects a decision this year. U.S.-listed shares of Novo Nordisk closed down 2% on Friday but climbed 1.2% to $134.71 in extended trading. Wegovy, which has been shown to help patients lose an average of 15% of their weight after 68 weeks of treatment, was first approved by the FDA to treat obesity in June 2021. Some leading U.S. obesity specialists have said they expected Eli Lilly's (LLY.N) , opens new tab rival weight-loss drug Zepbound would produce the same or similar heart benefits as Wegovy because both belonged to the same class of medicine. Lilly expects to publish data from a late-stage trial testing Zepbound as a treatment for heart failure later this year. https://www.reuters.com/business/healthcare-pharmaceuticals/fda-approves-novo-nordisks-wegovy-use-reducing-heart-attack-risks-2024-03-08/

2024-03-08 22:08

March 8 (Reuters) - S&P Global said on Friday it considers it a "virtual certainty" that Ukraine will default on its external commercial obligations and cut the country's long-term foreign currency (FC) credit rating deeper into junk territory. The agency cut the FC rating , opens new tab to "CC" from "CCC" and said it expects Ukraine to begin formal discussions on debt restructuring with its private creditors in the short term and complete the process by the middle of this year. Russia's invasion of Ukraine in February 2022 started the deadliest war , opens new tab on European soil in more than 70 years. "Given the substantial damage to physical and human capital, Ukraine's medium-term economic outlook is subject to a high degree of uncertainty," S&P said in its report. The agency said its outlook on Ukraine's FC rating was negative. https://www.reuters.com/markets/currencies/sp-cuts-ukraines-long-term-foreign-currency-rating-deeper-into-junk-2024-03-08/

2024-03-08 21:56

Nonfarm payrolls increase 275,000 in February December, January payrolls revised lower by 167,000 Unemployment rate rises to 3.9% from 3.7% Average hourly earnings gain 0.1%; up 4.3% year-on-year WASHINGTON, March 8 (Reuters) - U.S. job growth accelerated in February, but that likely masks underlying softening labor market conditions as the unemployment rate increased to a two-year high of 3.9%. The Labor Department's closely watched employment report on Friday also showed wages rising moderately last month. The jump in the unemployment rate after holding at 3.7% for three straight months reflected a further decline in household employment. The mixed report boosted the odds of the Federal Reserve cutting interest rates by June. The labor market continues to support the economy, which is outperforming its global pears, even as momentum is ebbing. "Despite the solid nonfarm payroll gain, the details from this jobs report are far weaker," said Scott Anderson, chief U.S. economist at BMO Capital Markets in San Francisco. "Labor market rebalancing is underway as advertised by the Fed, opening the door for a soft-landing for the economy and an initial rate cut around the middle of the year." Nonfarm payrolls increased by 275,000 jobs last month, the survey of establishments showed. The economy created 167,000 fewer jobs in December and January than previously estimated. Economists polled by Reuters had forecast 200,000 jobs added in February, with estimates ranging from 125,000 to 286,000. Payrolls are more than double the roughly 100,000 jobs needed per month to keep up with growth in the working age population. The smaller household survey from which the unemployment rate is derived showed household employment declining by 184,000 jobs last month. Applying the methodology used for nonfarm payrolls, household employment decreased by 271,000 jobs, marking the third straight monthly decline. That left some economists anticipating that February payrolls could be revised lower when the Labor Department's Bureau of Labor Statistics publishes March's employment report. Solid payrolls suggest the labor market remains strong, while the weak household survey implied layoffs were rising. There has been a rash of high-profile layoffs, though employers are generally holding on to their workers after struggling to find labor during the COVID-19 pandemic. "Our main concern is the widening divide between what the establishment nonfarm payroll data is telling us and what the household survey of employment is conveying," said Richard de Chazal, macro analyst at William Blair in London. "The labor market on the whole is still tight, but the household survey is very clearly telling us that momentum is waning." Financial markets saw an 80% chance of a first rate cut by June, up from 75% before the report was released. Since March 2022, the U.S. central bank has raised its policy rate by 525 basis points to the current 5.25%-5.50% range. Fed Chair Jerome Powell told lawmakers this week that rate cuts would "likely be appropriate" later this year, but emphasized they "really will depend on the path of the economy." Stocks on Wall Street were trading higher. The dollar fell against a basket of currencies. U.S. Treasury prices were mixed. BROAD JOB GAINS Acyclical sectors such as government and healthcare, which are still rebuilding headcount that was reduced during the pandemic, led employment gains last month. Nonetheless the breadth of job gains continued to broaden, with 62.6% of industries reporting an increase. Healthcare payrolls rose by 67,000, driven by hiring in ambulatory healthcare services as well as at hospitals, nursing and residential care facilities. Government employment increased by 52,000, with gains in both local and federal governments. Restaurants and bars added 42,000 jobs. Social assistance payrolls increased by 24,000 jobs, while employment in the transportation and warehousing sector rose by 20,000, amid a rebound in hiring for couriers and messengers, after shedding 70,000 jobs over the last three months. Construction payrolls increased by 23,000 jobs, likely supported by mild temperatures. There were also gains in retail employment. Professional and business services payrolls rose modestly as temporary help services hiring, seen as a harbinger for future hiring, declined for the 22nd consecutive month. Some economists viewed the persistent decline in temporary help jobs and the 4,000 drop in manufacturing payrolls as signs the labor market was slowing. Average hourly earnings edged up 0.1% last month after gaining 0.5% in January. That lowered the year-on-year increase in wages to a still-high 4.3% in February from 4.4% in January. Despite temperatures warming up after January's freeze, the average workweek rose modestly to 34.3 hours from 34.2 hours. Total aggregate hours worked rebounded 0.4%, reversing January's drop. Economists expected growth in worker productivity to slow to around a 1.0% annualized rate this quarter following solid gains since the second quarter of 2023. That would jeopardize expectations of a mid-year rate cut. "One key risk is that the reduction in productivity gains results in an increase in unit labor costs, which then feeds through to higher price mark-ups," said Brian Bethune, an economics professor at Boston College. The rise in the unemployment rate to the highest level since January 2022 also reflected 150,000 people joining the labor force. Other details of the household survey were upbeat. Fewer people were experiencing long bouts of unemployment in February. The prime age labor force participation rate, or the proportion of working-age Americans who have a job or are looking for one, rose to 83.5% from 83.3% in January. The participation rate for women in the 25-54 age group jumped to 77.7% from 77.4% in the prior month. The prime-age employment-to-population ratio, viewed as a measure of an economy's ability to create employment, climbed to 80.7% from 80.6% in January. "For those worried about signs of unwelcome heat in the market after the past few months, this report is a welcome cooling breeze," said Nick Bunker, economic research director for North America at Indeed Hiring Lab. "And if you're concerned about a labor market on unsteady ground, you shouldn't be too frightened." https://www.reuters.com/markets/us/us-job-growth-accelerates-february-unemployment-rate-rises-39-2024-03-08/

2024-03-08 21:49

LONDON/FRANKFURT, March 8 (Reuters) - Partners Group (PGHN.S) , opens new tab is exploring options, including a sale, for German renewable energy company VSB Group, six sources familiar with the matter said. The Swiss private equity firm has been interviewing financial advisers in the last few weeks, the sources said, adding that the sale process could begin in the second quarter. A sale of VSB could reach a valuation of up to $2 billion including debt, two of the sources said, while a third said that value would be between $1 and $2 billion. The sources, who requested anonymity as the matter is confidential, cautioned that a deal is not guaranteed and is subject to market conditions. Partners Group declined to comment. VSB did not immediately respond to a request for comment. The possible sale coincides with a drop in renewable asset values, although interest in the sector remains high as the European Union requires 42.5% of the bloc's energy to be renewable by 2030. If a sale goes ahead, VSB is likely to attract interest from infrastructure funds and utilities, two of the sources said. Utilities and oil firms have been selling renewable assets to sovereign wealth and infrastructure funds, which ask for lower returns, to finance the costs of developing new projects. Earlier this week, German-based renewable energy producer Encavis AG (ECVG.DE) , opens new tab said it was in talks with KKR (KKR.N) , opens new tab about interest in a potential transaction. Partners first invested in 2020 in VSB, which employs 500 people in Germany, Italy, France, Spain, Poland, Romania, Greece, Finland and Croatia, its website says. Partners acquired Exus, an international renewables asset management and development firm, in October and has decided to sell VSB instead of merging the two, which was one of the options, one of the sources said. (This story has been refiled to fix a typo in paragraph 1) https://www.reuters.com/markets/deals/partners-considers-sale-german-renewables-firm-vsb-sources-say-2024-03-08/