2023-12-22 20:36
WASHINGTON, Dec 22 (Reuters) - Truck engine maker Cummins Inc (CMI.N) has agreed in principle to pay a $1.675 billion fine for installing devices on hundreds of thousands of engines to allow them to emit excess pollution, the largest-ever civil penalty for a Clean Air Act violation, the U.S. Justice Department said on Friday. The Department said Cummins allegedly installed so-called "defeat devices" to bypass or disable emissions controls such as emission sensors and onboard computers. The department said Cummins used defeat devices on 630,000 2013 to 2019 RAM 2500 and 3500 pickup truck engines and undisclosed auxiliary emission control devices on 330,000 2019 to 2023 RAM 2500 and 3500 pickup truck engines to cheat emissions control requirements. U.S. Attorney General Merrick Garland said "preliminary estimates suggest that defeat devices on some Cummins engines have caused them to produce thousands of tons of excess emissions of nitrogen oxides." It is the second largest environmental penalty deal ever reached, the department said. EPA Administrator Michael Regan said "vulnerable communities are more likely to reside near highways where these harmful emissions are concentrated, making this agreement critical to advancing our environmental justice agenda." Cummins (CMI.N) said it expects to take a nearly $2.04 billion charge in the fourth quarter to resolve regulatory claims relating to nearly one million engines from the Justice Department and California Air Resources Board. "The company has seen no evidence that anyone acted in bad faith and does not admit wrongdoing," Cummins said in a statement. The formal settlement, which will need court approval, will be made public as early as next month. RAM-owner Stellantis (STLAM.MI) declined to comment. The 960,000 vehicles have been recalled and the emissions control software will be updated, Cummins said, which previously took a $59 million charge for emissions recalls. Cummins first announced in April 2019 it was internally reviewing its emissions certification process and compliance. Cummins previously said U.S. regulators were scrutinizing Nissan (7201.T) Titan trucks from the 2016 to 2019 model years and that it was developing a new software calibration and hardware fix and would recall the trucks. Cummins previously took $59 million in charges to address the costs of the RAM and Titan recalls. Nissan did not immediately comment Friday. The company, which also counts PACCAR (PCAR.O) and Daimler Trucks North America as its customers, said about $1.93 billion is expected to be paid in the first half of 2024. Jeffries said in a research note the charge "is significant but is not expected to impact normal business operations." Cummins shares were down 2.3% in early afternoon trading to $238.47. In August 2022, the U.S. business of Fiat Chrysler Automobiles -- now a unit of Stellantis -- pleaded guilty to criminal conspiracy and paid nearly $300 million to resolve a multi-year U.S. Justice Department diesel-emissions fraud probe. FCA US LLC was also sentenced to a three-year term of organizational probation. Volkswagen paid $1.45 billion in U.S. civil penalties in 2017 after the German automaker in 2015 disclosed that it had cheated emissions tests by installing defeat devices" in 11 million vehicles worldwide, using sophisticated software to reduce emissions only during emissions tests. Volkswagen in total settled U.S. civil and criminal actions prompted by the emissions scandal for more than $20 billion. https://www.reuters.com/business/autos-transportation/cummins-take-about-204-bln-charge-fourth-quarter-2023-12-22/
2023-12-22 20:28
WASHINGTON, Dec 22 (Reuters) - The United States on Friday reopened two rail crossings between Texas and Mexico vital for exports, five days after their closure in response to increased migrant traffic, and new U.S. data showed migrant numbers at the southern U.S. border remained high last month. U.S. Customs and Border Protection (CBP) said operations resumed on Friday afternoon at the international railway crossing bridges in Eagle Pass and El Paso, Texas. The closures had dismayed railroads, the agriculture industry and some lawmakers concerned by the loss of exports. The White House said the United States will operate the crossings 24 hours a day for the next few days, and railroads, U.S. grain industry trade groups and Mexico's farm lobby welcomed the reopening. Growers, representing U.S. corn, milk, rice and soybean producers, among others, this week estimated that almost 1 million bushels of grain exports were lost every day of the closure. At the start of the week, the Biden administration closed two rail trade routes between the U.S. and Mexico, a move intended to free up customs personnel to assist border agents. U.S. data released on Friday showed the number of migrants encountered by CBP agents along the clogged southern border in November remained high, keeping pressure on President Joe Biden to reduce the flow significantly ahead of his reelection bid next year. CBP migrant encounters for November totaled 242,418, roughly level with October but down from September's near record high of 270,000. U.S. border agents apprehended about 10,800 migrants at the southwest border on Monday, according to an internal report reviewed by Reuters, and several current and former officials said this was near or at a single-day record high. Praising the reopening, Ian Jefferies, CEO of the Association of American Railroads, said the rail crossing closures did not help stem the flow of migrants. "These ill-advised closures were a blunt-force tool that did nothing to bolster law enforcement capacity," he said. The U.S. thanked Mexico on Friday for its efforts. "We are grateful for Mexico's cooperation to reduce migration pressure in these sectors and combat the smugglers placing migrants in harm's way," a White House spokesperson said. Mexico's foreign ministry said the government "insisted on the need to reopen border crossings as soon as possible to guarantee dynamic trade flows and enhance the economic relationship" between the U.S. and Mexico. Mexico's main farm lobby CNA expressed relief over the reopenings, saying "the lack of supplies in Mexico, caused by the closures, was affecting food production, raising costs and putting food security at risk in the country." https://www.reuters.com/world/americas/texas-mexico-international-rail-crossings-reopening-2023-12-22/
2023-12-22 20:28
KYIV/WARSAW, Dec 22 (Reuters) - Ukraine and Poland said on Friday they were ready to try to resolve "problematic" issues in their relations, suffering especially by a Polish truckers' blockade of border crossings. The pledge emerged from a meeting in Kyiv between Ukrainian Foreign Minister Dmytro Kuleba and Polish counterpart Radoslaw Sikorski, who was on his first official trip abroad. Ukraine has counted Poland as one of its closest European Union allies as it has battled an almost two-year-old Russian invasion. Poland has given Ukraine humanitarian and military assistance and taken in millions of Ukrainian refugees. But relations have been overshadowed by a protest blockade of several border crossings by Polish truck drivers, and what Kyiv has seen as a lack of initiative by the now former Polish nationalist government to resolve the problem. Polish hauliers are angry over a loss of business to competition from Ukrainian truckers who have benefited from permit-free access to EU territory since the war began. They want permits for Ukrainian truckers reinstated, something Kyiv and the European Commission say is not negotiable. The protests have resulted in economic losses for Ukraine and also affected vital volunteer military aid supplies. At a joint news conference, Kuleba said the visit by Sikorski - a member of Poland's new centrist, pro-EU cabinet -showed there would be a meaningful and mutually respectful dialogue between the countries. "We started with the need to resolve problematic issues in bilateral relations. And there is a desire to solve these issues on both sides. We need to sit down and talk in detail in order to find balanced, legally-sound solutions," Kuleba told reporters after talks with Sikorski. Sikorski said the countries must restore conditions for fair competition so that everyone benefited from trade and transport. "There are always some issues to be resolved between neighbours related to history or current affairs. That's why I brought the minister of transport and minister of agriculture (here too)," he said. The Ukrainian farm ministry said earlier on Friday that the countries had already held online talks. The Polish foreign ministry spokesperson said earlier that Sikorski would present another aid package during his visit and also meet Ukrainian President Volodymyr Zelenskiy. An air raid siren sounded during the news conference in Ukraine's capital, which was targeted by another large-scale Russian drone attack in the night. "This alarm you hear is the reason why I am here. It is unacceptable... In this titanic fight, Poland is on your side," Sikorski said. https://www.reuters.com/world/europe/polish-minister-visits-ukraine-present-aid-package-2023-12-22/
2023-12-22 20:15
Dec 22 (Reuters) - Union Pacific (UNP.N) said on Friday that it was informed by the authorities that railroad crossings in two Texas border towns would reopen this afternoon, nearly a week after U.S. border officials closed two rail bridges. The U.S. Customs and Border Protection had announced a temporary suspension of operations at the international railway crossing bridges at El Paso and Eagle Pass to deal with an influx of migrants on the country's southern border. "We will work to restore normal operations as quickly as possible as we work through the five-day backlog of shipments at the border," the railroad operator said in a statement. On Wednesday, numerous prominent U.S. agricultural organizations and railroad companies appealed for reopening two rail crossings along the Texas-Mexico border. The two railroad crossings are among the six available between the U.S. and Mexico. Union Pacific estimated the economic impact to businesses from the closures at more than $200 million a day in goods, wages and transportation costs. The U.S. Border Patrol apprehended about 10,800 migrants at the southwest border on Monday, according to an internal agency report reviewed by Reuters. https://www.reuters.com/world/us/union-pacific-informed-mexican-border-railroad-crossings-be-reopened-2023-12-22/
2023-12-22 20:14
NEW YORK, Dec 22 (Reuters) - Last-minute shoppers looking for late deals ahead of Christmas may find smaller discounts and fewer items marked down at major retailers including Macy’s (M.N), Target (TGT.N) and Ulta Beauty , according to an analyst and two datasets measuring retailers' recent prices. After ramping up promotions for Black Friday, some of the country’s top gifting destinations cut back both the number and size of their price markdowns on key products from Nov. 1 to Dec. 1, according to data from Centric Market Intelligence, formerly StyleSage, which analyzes retailers, brands, online trends and products across the globe. At Macy's, products with price markdowns fell from 49% to 46%, and the average markdown dropped from 20% to 17%, during the time period. At Ulta, products on sale dropped from 10% to 5%, while the average discount dropped from 3% to 2%. Data analytics firm Vertical Knowledge, which examines pricing and discounts across retailers’ websites, found retailers including Abercrombie & Fitch (ANF.N) and Macy's-owned Bloomingdale’s also shrank or maintained their average discounts on products from November to December after deepening markdowns last year. Retailers could potentially adjust their discounts in a bid to entice price-sensitive shoppers in the days before Christmas. But so far, "what's interesting this year is that even though we’re in a promotional environment, the promotions haven’t been very deep," said Jessica Ramirez, a senior research analyst for Jane Hali & Associates. The decision to roll back discounts ahead of the Saturday before Christmas - dubbed "Super Saturday" and typically one of the busiest shopping days of the year - highlights the challenges retailers are facing as higher interest rates and other financial pressures weigh on consumer spending. Promotions have been vital to drawing shoppers during key periods such as back-to-school and Black Friday, as executives at Nike disclosed to investors on Thursday during a post-results conference call. But cutting back on discounts in December is a way to buoy profits, especially given that Black Friday discounts started as early as October for many retailers. “The people who are super price-sensitive have already done their shopping,” said Brian Yacktman, president of YCG Investments, which owns shares of retailers including Nike, Amazon and LVMH (LVMH.PA). And with this year’s Super Saturday falling just two days before Christmas, shopping procrastinators are less likely to care about cost. “They’re at an inelastic demand point where they’ll pay anything to get the gift” if shoppers really need it, Yacktman said. “Which is a good opportunity for retailers looking to recover their margins.” FEWER SHOPPERS AND LOWER DISCOUNTS U.S. retailers expect 142 million shoppers on Super Saturday, a 10% decline from a year ago, according to the National Retail Federation trade group. Store visits in recent days were down from a year ago at chains including Best Buy (BBY.N) and Home Depot (HD.N), according to analysts. Shoppers are buying less overall. Sales revenue during the 2023 holiday shopping season is 6% lower than last year, and unit sales are 5% lower, according to early data from Circana. Ben Gibson, a pharmacist in San Antonio, Texas, on Thursday said he was perusing prices on video cameras and a tripod at Walmart (WMT.N), and Best Buy. He said he might buy one he found on Amazon (AMZN.O) instead. Stacey Powells of Mammoth Lakes, California, said Thursday that she hadn't seen compelling prices on gifts for her grandson. Retailers have spent the past year clearing out excess inventory and reducing orders in anticipation of weaker holiday sales, allowing them to focus more on boosting margins than convincing inflation-weary shoppers to splurge. Nike (NKE.N) is one retailer offering fewer discounts as of Dec. 10 than last year, when its website advertised up to 50% off last-minute gifts, according to data from Jane Hali & Associates. As of Friday, most discounts on its U.S. website were between 14% and 30%, including a 24% discount on women’s leggings from its higher-priced Zenvy line, which typically cost $100 or more. https://www.reuters.com/business/retail-consumer/not-so-super-saturday-retailers-dangle-fewer-discounts-inflation-weary-shoppers-2023-12-22/
2023-12-22 20:14
U.S. inflation eases, Fed seen more likely to cut interest rates Major shippers impose extra charges to re-route ships China could invest in Angola's oil output NEW YORK, Dec 22 (Reuters) - Oil prices eased on Friday ahead of the long Christmas holiday weekend on expectations Angola could increase output after leaving OPEC, but rose for the week on positive U.S. economic news and worries Houthi ship attacks would boost supply costs. Brent futures fell 32 cents, or 0.4%, to settle at $79.07 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 33 cents, or 0.5%, to settle at $73.56. That left both benchmarks up about 3% for the week after gaining less than 1% last week. In the Middle East, more maritime carriers said they were avoiding the Red Sea due to attacks on vessels carried out by the Iranian-backed Houthi militant group, which says it is responding to Israel's war in Gaza. Major shippers Maersk and CMA CGM said they would impose extra charges linked to re-routing ships. The attacks have caused disruptions through the Suez Canal, which handles about 12% of world trade. "Direct pauses to supply are not the only reason oil prices will be moved by the Red Sea situation; freight rates and insurance costs are increasing," said PVM analyst John Evans about the impact of the disruption. In Africa, meanwhile, Angola's decision to leave the Organization of the Petroleum Exporting Countries (OPEC) could open the way for Beijing to increase investment in the country's oil and other sectors. Angola produces about 1.1 million barrels per day of oil. "It will take time for Angola oil production to rise even if China moves in there in a big way," said Phil Flynn, an analyst at Price Futures Group, noting that the U.S. inflation data and Houthi attacks in the Red Sea should be more supportive of oil prices than any future increase in output from Angola. In Iraq, meanwhile, oil ministry spokesman Asim Jihad affirmed Iraq's support for the OPEC+ agreement and its commitment to voluntary oil cuts. OPEC+ includes OPEC and allies like Russia. U.S INFLATION EASES In the U.S., a key inflation reading came in softer than expected, boosting investor optimism that the U.S. Federal Reserve (Fed) would lower borrowing costs next year. Lower interest rates cut consumer borrowing costs, which can boost economic growth and demand for oil. Expectations that the Fed is more likely to cut interest rates next year also helped reduce the U.S. dollar (.DXY) to its lowest since July against a basket of other currencies for a second day in a row. A weaker dollar can boost oil demand by making the fuel more expensive for buyers using other currencies. But all U.S. economic news was not positive. Sales of new U.S. single-family homes dropped to a one-year low in November, but the unexpected decline is probably temporary amid a chronic shortage of previously owned homes, which has been supporting demand for new construction. https://www.reuters.com/business/energy/oil-prices-set-weekly-gain-red-sea-tension-persists-2023-12-22/
