2024-08-13 22:07

BOGOTA, Aug 13 (Reuters) - Colombia's majority state-owned oil company Ecopetrol (ECO.CN) , opens new tab on Tuesday reported a 17% fall in second-quarter net profit, citing market conditions. Ecopetrol's net profit for the three months to June 30 stood at 3.38 trillion pesos ($830.9 million), the company said in a quarterly earnings report. First-half net profit fell 24% to 7.39 trillion pesos, versus 9.75 trillion pesos in the first six months of 2023. "Ecopetrol faced a challenging environment, which remains impacted by various outside variables, such as the revaluation of the Colombian peso and inflationary pressures," Chief Executive Ricardo Roa said in the report. Before Ecopetrol published its results, the company's share price closed down on Tuesday, dropping 2.08% to 2,110 Colombian pesos per share on the local stock market. Regional peers in Mexico and Brazil both posted second-quarter losses for the three months through June. Mexico's Pemex (PEMX.UL) last month reported a swing to a net loss of $14 billion, while Brazil's Petrobras (PGFB.UL) reported its first quarterly loss since the third quarter of 2020 - which came in at $470 million - due to a non-recurring tax charge. The Bogota-based company's total sales for the quarter fell 4.9% to 32.63 trillion pesos during the April to June period, it said. The company's second-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) fell 3.7% to 14.05 trillion pesos, from 14.6 trillion pesos in the year-earlier period. The company's production in the second quarter rose by 4.1% to 758,200 barrels of oil equivalent per day (boed), driven by surging activity at Ecopetrol's operations in the U.S Permian Basin, where output rose 67% to 98,200 boed. ($1 = 4,063.26 Colombian pesos) Sign up here. https://www.reuters.com/business/energy/colombias-ecopetrol-posts-174-fall-q2-profit-2024-08-13/

2024-08-13 22:06

BRASILIA, Aug 13 (Reuters) - Brazilian Finance Minister Fernando Haddad said on Tuesday that President Luiz Inacio Lula da Silva will announce in coming weeks his choice to lead the central bank after current chief Roberto Campos Neto's term ends this year. Speaking to journalists, Haddad said the announcement date will depend on a meeting between Lula and Senate President Rodrigo Pacheco. The two will discuss the timing of the Senate hearing for the nominee, whose name must be approved by the senators, Haddad said. Haddad also told journalists the central bank must analyze various factors before making its policy decision. His comments followed hawkish remarks from central bank monetary policy director Gabriel Galipolo about a rate hike being on the table amid a scenario considered uncomfortable for reaching the 3% inflation target. Galipolo, who previously held a second-in-command position at the Finance Ministry, is seen as the frontrunner to succeed Campos Neto and has already been praised by Lula as a "golden boy." "Raising rates is not always the best answer," said Haddad. He noted that keeping rates at a restrictive level is sometimes better, while pointing out that the central bank's rate-setting board members have the mandate to make the best decision. Sign up here. https://www.reuters.com/markets/brazils-lula-name-new-central-bank-head-coming-weeks-says-finance-minister-2024-08-13/

2024-08-13 21:48

Aug 14 (Reuters) - A look at the day ahead in Asian markets. Markets have bounced back nicely from the recent volatility, and it's becoming clearer each day that the recent turbulence was likely due to the unwinding of large leveraged positions, like yen-funded carry trades, rather than deeper concerns about global growth. Now, everyone's eyeing Wednesday's U.S. inflation report, which could test the market's new calm. The July CPI numbers might not show much improvement from the previous month, but as long as there isn’t a big surprise, investors might still hope for the Fed to start easing in September. Futures markets currently show a 54% chance of a 50 basis point cut by the Fed, with a 46% chance of a 25 basis point cut, and traders are pricing in a full percentage point of easing by year-end. Keeping these expectations intact might be key to not scaring away investors' risk appetite just as Japanese shares have rebounded after last week's violent selloff. Japan's Nikkei (.N225) , opens new tab rose more than 3% following a holiday on Monday. Ahead of the CPI report, the mood on Wall Street was upbeat, with the S&P 500 and Nasdaq Composite both continuing to rebound from recent dips. U.S. Treasury yields slipped as data revealed that U.S. producer prices rose less than expected in July, which supports the case for the Fed to cut rates in the coming months. Meanwhile, Brent and U.S. crude oil futures dipped on Tuesday as the market perceived a reduced risk of a broader conflict in the Middle East. Investors will also keeping an eye on New Zealand's central bank, which might cut interest rates on Wednesday, a full year ahead of its previous guidance. Slowing inflation, rising unemployment, and sluggish economic growth have led investors to bet on this easing move. India’s wholesale price data will also be in the spotlight, as investors are eager to see if inflation slowed in July after climbing in recent months. Notably, India’s retail inflation dropped in July to its lowest level in nearly five years, according to government data released on Monday. Here are key developments that could provide more direction to markets on Wednesday: - Reserve Bank of New Zealand meeting - India Wholesale Price Index (July) - U.S. Consumer Price Index (July) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-2024-08-13/

2024-08-13 21:46

SAO PAULO, Aug 13 (Reuters) - Brazil's JBS SA, the world's largest meatpacker, said on Tuesday that divisions that process chicken and pigs lifted its results, including poultry unit Pilgrim's Pride (PPC.O) , opens new tab, JBS USA Pork in the U.S., and Seara in Brazil. Performance there compensated for the slump in the Beef USA division, which accounts for about a third of JBS' revenue, the company's second-quarter results showed. JBS (JBSS3.SA) , opens new tab reported a net profit of 1.72 billion reais ($315.2 million) for the quarter. While the company missed forecasts by LSEG analysts, who had predicted a net profit of 2.02 billion reais, it returned to a profit after a net loss the same quarter a year earlier. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA), a measure of operating income, were 9.88 billion reais for the quarter from April to June. Gilberto Tomazoni, global chief executive officer of JBS, said in an interview that the results were boosted by favorable supply and demand dynamics, as well as lower prices of grains for animal feed and operational improvements. Tomazoni added that the company's processed food, poultry and pork unit in Brazil, Seara, had overcome past operational challenges, and while improvements had been incorporated, more adjustments would be made. "It still has potential," he said. "Now, with the incorporation of commercial issues, pricing, mix management, distribution management, we can do even better." Tomazoni said the dual share listing plan was still an important strategy for the company to unlock value in the U.S., one of its biggest markets. It is pending authorization from the U.S. Securities and Exchange Commission (SEC). "When we have SEC approval for the registration, we'll call the shareholder meeting and put it to a vote," he said, adding that executives were still in talks with SEC officials. While exports to China were down, he said those to other destinations, such as the United States, Chile and the Middle East, were holding up. "Brazil's animal processing volumes grew significantly, and domestic consumption was greater than exports," Tomazoni said. JBS increased free cash generation to 5.5 billion reais in the second quarter, which gave room to deleverage debt. Guilherme Cavalcanti, chief financial officer, said reduced debt meant the company could maintain its growth plans. Total revenue, for the first time, exceeded 100 billion reais in a quarter. ($1 = 5.4568 reais) Sign up here. https://www.reuters.com/markets/commodities/brazilian-meatpacker-jbs-swings-net-profit-q2-2024-08-13/

2024-08-13 21:24

Aug 14 (Reuters) - The International Atomic Energy Agency (IAEA) said late on Tuesday that evidence continues to indicate that Monday's fire at the Russia-controlled Zaporizhzhia nuclear plant in Ukraine did not start at the base of the cooling tower or by a foreign object. "The evidence gathered reinforces our conclusion that the main fire seems unlikely to be at the base of the cooling tower," the IAEA cited its head, Rafael Mariano Grossi, as saying in a statement. It said "foreign objects or materials were visible" in the damaged tower. The Russian management of the plant told the IAEA that the tower may need to be dismantled, the IAEA said. Sign up here. https://www.reuters.com/world/europe/iaea-says-still-no-known-cause-fire-zaporizhzhia-nuclear-plant-2024-08-13/

2024-08-13 20:49

Aug 13 (Reuters) - Starbucks on Tuesday named Chipotle Mexican Grill (CMG.N) , opens new tab head Brian Niccol as its new CEO, poaching a successful fast-food executive known for reviving the burrito chain to lead a turnaround, in a shock move that sent the coffee chain's shares up 24%. Niccol replaces Laxman Narasimhan, whose tenure only lasted a year-and-a-half after he was originally brought in as CEO in March 2023 to engineer a "reinvention" of the world's biggest coffee chain. Since then, the stock has continued to falter, losing nearly one-quarter of its value. He inherits several challenges at the coffee giant, which has been under pressure from activist investor Elliott Investment Management to improve its business, and has suffered from increased competition and weakening demand in the United States and China. Niccol's appointment is a coup for Starbucks, as Chipotle's annual sales have surged since he joined in 2018, and the stock has more than tripled over the last five years. "This is a significant victory for Starbucks. Niccol has earned the respect and confidence of the investment community and will be given the much-needed leeway to make investments and time to turn around Starbucks," BTIG analyst Peter Saleh said. Starbucks had been under pressure from Elliott, which had built a $2 billion stake. The hedge fund had suggested Starbucks expand its board and make Elliott executive Jesse Cohn a director, though it was not demanding a CEO change. Sources familiar with Starbucks said former CEO Howard Schultz had been pressing board members to try and solve the company's issues without offering a board seat to the activist investor. Elliott on Tuesday said that Niccol's appointment was "a transformational step forward" for the company. "We look forward to continuing our engagement with the Board as it works toward the realization of Starbucks' full potential," Elliott said in statement. Starbucks recently tweaked its model to focus on mobile pickup and delivery orders rather than cafes set up for long visits. When asked on CNBC if activist Elliott was consulted about the shakeup, Starbucks Board Chair Mellody Hobson said it had not been. Trian Fund Management, another activist investment firm which tangled with Walt Disney (DIS.N) , opens new tab this year, also owned Starbucks shares and had conversations with Hobson, according to sources. Happy with the appointment, the fund has now sold its position. Trian did not immediately respond to a request for comment. THE SIXTH CEO Starbucks shares had a record one-day percentage jump, hitting a more than five-month high. Chipotle stock closed down 7.5% on Tuesday. Craig Garthwaite, a professor at Northwestern's Kellogg School of Management, said Niccol "has taken an upscale fast food restaurant chain and improved it before, and that is what Starbucks is today, a fast-food restaurant. For Niccol this could be the ultimate challenge in fixing the perception that's weighing on the company and the business problems." In May, days after Starbucks cut its annual sales forecast, Schultz wrote on his LinkedIn account that its U.S. operations were the "primary reason for its fall from grace," and that senior leaders need to spend more time with workers. Starbucks in late July reported a 6% decline in U.S. comparable transactions for its most recent quarter. Under Narasimhan, Starbucks moved away from Schultz's tough stance on Workers United, the union seeking to organize its U.S. workforce. In February, the chain announced talks that began a national contract negotiating process for the more than 400 unionized stores. Niccol, who will start on Sept. 9, will become only the sixth CEO at Starbucks over its 50-plus-year history, with founder Schultz leading the company for 23 years in three separate stints. CFO Rachel Ruggeri will serve as Starbucks' interim CEO until Niccol starts. Chipotle said its board had appointed Scott Boatwright, chief operating officer, as interim CEO. Niccol, who has an engineering major from Miami University, joined Chipotle in 2018 from Taco Bell and helped the company overcome salmonella and E.coli outbreaks at several outlets. "(Niccol) is a fixer and a doer and an executor," said Thomas Hayes, chairman at Great Hill Capital. Sign up here. https://www.reuters.com/business/retail-consumer/starbucks-names-chipotles-brian-niccol-ceo-2024-08-13/