2024-07-30 20:12

YAOUNDE, July 30 (Reuters) - Cameroon on Tuesday signed a bauxite mining deal worth at least $2 billion with a subsidiary of Australia-based Canyon Resources (CAY.AX) , opens new tab, as the central African nation seeks to become an upper middle-income country by 2035. Camalco, the Cameroonian subsidiary of the Australian miner, will carry out the direct shipping ore (DSO) project at the Minim-Martap mine in northern Cameroon, covering an area of nearly 500 square km (123,550 acres). "We have finally been able to bring the long [awaited], old Minim-Martap, which was known theoretically, into fruition," Fuh Calistus Gentry, Cameroon's interim mines minister, said at the signing event. According to an initial 20-year agreement, Camalco will work on the Beatrice, Raymonde and Danielle plateaux in the north of the country to mine 99.1 million metric tons of proven reserves of bauxite, with 51.6% alumina and 2.4% silica. The high-grade, low contaminant bauxite deposit is suitable for industrial production at a rate of around 5 million tons of bauxite ore annually over a period of 20 years. Camalco will process bauxite into alumina and transport it via an existing railway line through the cities of Ngaoundere, Yaounde and Douala to the Port of Douala or the ore terminal at the Port of Kribi for export. It will build the mine and other mining facilities to be used during the actual mining operation, as well as road infrastructure from the extraction site to the rail loading station. It will also invest in rehabilitating the existing railway network. The mining company will also build an energy production unit, a unit to process bauxite into alumina, and dedicated port facilities. Singapore-based Eagle Eye Asset Holdings (EEA) is helping fund the project after signing a subscription agreement with Canyon Resources last year. Rana Pratap Singh, director general of Camalco, said the deal marks a very important milestone in the process of converting the concession into a mining permit. "Once we have this mining permit, then all our activities will take pace with much more confidence from investors," he told reporters at the signing, adding that serious mining operations could begin in two years' time. Under the deal, the Cameroonian government will own 10% of all bauxite extracted. It will also receive state concession fees and ad valorem tax, while the mining company will pay royalties to local communities. The project will generate at least 1,000 direct jobs from the first year of production and significantly contribute to the national economy, the interim mines minister said. The mining code stipulates that 15% of the raw material extracted must be supplied to the local market. Sign up here. https://www.reuters.com/markets/commodities/cameroon-signs-bauxite-deal-with-canyon-resources-2024-07-30/

2024-07-30 19:54

July 30 (Reuters) - Procter & Gamble (PG.N) , opens new tab posted a surprise drop in fourth-quarter sales, as the company's efforts to reel in years of steep price hikes failed to win over price-conscious consumers who snubbed the company's pricier Charmin toilet paper and Pampers diapers. P&G shares fell 4.8% on Tuesday. Rivals including Nestle (NESN.S) , opens new tab and Unilever (ULVR.L) , opens new tab also reported first-half sales growth below expectations. PepsiCo (PEP.O) , opens new tab missed sales expectations earlier in July, with executives saying that consumers of all incomes were feeling squeezed financially. "(There is) a hole in the consumer sector ... it is getting more difficult to pass on price increases," said Don Nesbitt, senior portfolio manager at F/m Investments, which has a stake in P&G. "The consumer is becoming more discerning on their purchases, especially the lower-end consumer," he said. P&G has been spending heavily to launch new products across its laundry business, including its Tide Evo detergent tile, and lower-cost Luvs Platinum Protection diapers, aiming to woo customers looking for cheaper and more environmentally friendly options. Executives said supply constraints delayed the introduction of the new Luvs. P&G's key diaper business saw sales declines because it lost market share to competitors. The company has been increasing promotions and offering discounts, resulting in lower prices for some of its products and taking a toll on organic or self-generated sales at its largest division, fabric and home care, which includes Tide detergent. "P&G's sales (figures) support the theme that you can only push price so far until consumers push back," said Brian Jacobsen, chief economist at Annex Wealth Management. "If they use promotions and discounts to get the attention of consumers, that could help volumes, but that comes at a price." MORE EXPENSIVE Executives, however, said on a call with Wall Street analysts that they were not seeing significant financial pressure among consumers, who they said continued to purchase more expensive P&G products, moving from diapers with taped sides to pull-ups, or single-use detergents to larger sizes, as examples. CEO Jon Moeller said on the call that P&G has been enhancing products like Dawn dish soap and Charmin toilet paper that are in categories that would see even higher levels of demand if there is a consumer downturn. "What happens if there's a consumer downturn? People eat at home more often, they're going out less frequently, traveling less frequently, and so categories like hand dish-washing, for example, become important," Moeller said. P&G reported a 1% rise in overall volumes in its fourth quarter ended June 30, driven by growth in its grooming business, which includes Venus razors, and health care division featuring brands such as fiber supplement Metamucil. The average price also rose 1%, compared with a 7% jump a year ago. Net sales slipped to $20.53 billion and missed an average expectation of $20.74 billion among analysts polled by LSEG. P&G has also been hit by weak spending in China, even for daily-use items. Consumer boycotts of its flagship, pricey Japanese beauty brand SK-II continued to hurt results from the country, P&G's second-largest market. Volumes in P&G's beauty business, which includes SK-II, fell 1%. Executives, however, said the "core" of the business, which includes cheaper shampoos like Head & Shoulders and Pantene, and mainstream skincare brand Olay, is continuing to grow. Executives on a conference call with investors said sentiment had not improved in China over the last roughly six months. P&G is also seeing continuing boycotts of Western brands in the Middle East. The company's adjusted profit of $1.40 per share beat estimates of $1.37, mainly due to lower commodity costs. The company said it expects to repurchase between $6 billion and $7 billion of common shares in fiscal 2025. It expects fiscal 2025 core profit to rise between $6.91 and $7.05 per share, compared with analysts' expectations of $6.97, and annual sales growth in a range of 2% to 4%, compared with estimates of a 3.04% rise. Michelle Li, an analyst with P&G investor Parnassus Investments, said in an email that the company's outlook for its 2025 fiscal year "is a good sign." Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/procter-gamble-misses-quarterly-sales-expectations-2024-07-30/

2024-07-30 19:42

PANAMA CITY, July 30 (Reuters) - The Panama Canal expects to increase the number of daily transit slots for vessels to 36 from the current 34 beginning in September, the canal's deputy administrator said, as rains allow authorities to ease drought-imposed restrictions. Panama experienced its third-driest year on record in 2023, lowering the canal's water level and forcing its authority to limit the number of vessels using the waterway that connects the Atlantic and Pacific Oceans. At times, more than 100 ships at a time lined up and waited up to 21 days to use the canal, which is responsible for about 5% of global shipping. "Now (the operation) is practically back to normal. We have 34 transits (per day) and on August 5 we will increase to 35 transits and ... in September we'll be able to increase to 36," Deputy Administrator Ilya Espino said in an interview on Monday. "For now, we are on the right track," Espino said. The early arrival of the rainy season in recent weeks has allowed authorities to increase the number of ships authorized to cross the canal. "In the summer, the aim is not to have to reduce the number of transit slots, just the draft as we do every year (...) and to have normal transit activity from September," Espino added. The Canal Authority expects this outlook to boost total revenues by 18% year-on-year to $5.6 billion during the 2024-2025 fiscal year, which begins in October, with state contributions growing 13%. COMPETITION? Espino told Reuters that the canal would remain competitive even if projects aiming to connect the Atlantic and Pacific gain speed in Colombia and Mexico, projects she described as "complementary." A transoceanic freight rail line in southern Mexico is among President Andres Manuel Lopez Obrador's signature economic development projects, while in Colombia a land corridor connecting the oceans has been debated for years. "Here we have a very varied market, many segments that a land corridor does not have that flexibility or availability to move as many segments as we do," she added. Espino said that the canal seeks to strengthen its operational competitiveness, although its priority is to seek new water sources. To this end, the canal's authorities plan to build a new reservoir in six years at a cost of about $1.6 billion, which would provide the corridor with enough water to keep operating. Sign up here. https://www.reuters.com/markets/commodities/panama-canal-increase-transit-slots-september-rains-come-early-2024-07-30/

2024-07-30 19:12

July 29 (Reuters) - JetBlue Airways (JBLU.O) , opens new tab on Tuesday posted a surprise second-quarter profit and deferred deliveries of 44 Airbus (AIR.PA) , opens new tab 321neo aircraft to 2030 and beyond as part of its efforts to drive up earnings. The New York-based airline said it was targeting $800 million to $900 million in incremental core profits in 2027 by running a reliable operation and focusing on leisure travel demand in New York, New England, Florida and Latin American markets. The company is also looking to control costs. It said deferring aircraft deliveries would reduce its planned capital expenditure by about $3 billion between 2025 and 2029. "It is imperative we keep our costs low so we can continue offering customers the most value when they fly," CEO Joanna Geraghty told analysts on an earnings call. JetBlue's shares were up about 13% at $6.68 in afternoon trade. While travel demand remains strong, an excess supply of airline seats in the domestic market has dampened airfares, making it harder for U.S. carriers to mitigate a run-up in labor and other operating costs. JetBlue's operations are also impacted by troubles with Pratt & Whitney's Geared Turbofan (GTF) engines, which have forced it to take a number of its aircraft out of service. The company said it now expects the average number of grounded aircraft in 2025 to be in mid to high teens with "greater uncertainty" in 2026 and beyond. It blamed the engine troubles for its decision to defer the aircraft deliveries. "At this stage, we simply can't afford to continue taking delivery of costly new aircraft that may need to be parked due to engine availability issues," JetBlue CFO Ursula Hurley said. JetBlue reported an adjusted profit of 8 cents per share in the second quarter, compared with analysts' average estimates of a 11 cents loss, according to LSEG data. The company's total operating revenue fell 6.9% to $2.43 billion, compared with Wall Street expectations of $2.40 billion. Sign up here. https://www.reuters.com/business/aerospace-defense/jetblue-posts-surprise-profit-delays-buying-3-bln-worth-airbus-planes-2024-07-30/

2024-07-30 18:41

Loonie touches Monday's 8-month low at 1.3864 Price of U.S. oil falls 1.3% 2-year yield hits a 14-month low at 3.500% TORONTO, July 30 (Reuters) - The Canadian dollar was on track to end its longest losing streak in seven years against its U.S. counterpart on Tuesday, as investors awaited a policy decision this week by the Federal Reserve. The loonie was trading nearly unchanged at 1.3847 to the U.S. dollar, or 72.22 U.S. cents, after nine straight days of declines. That's the longest streak of declines since May 2017. Earlier, the currency touched 1.3864, matching Monday's eight-month low. "My informal rule of thumb for major FX pairs is that one direction moves very rarely extend for more than ten sessions on the trot. The CAD sell-off is due a pause at least," Shaun Osborne, chief currency strategist at Scotiabank, said in a note. Investors expect the Fed to hold interest rates steady at a policy announcement on Wednesday but signal that rate cuts are imminent. The Bank of Canada has already begun an easing cycle. Last week, the central bank cut its benchmark rate for a second time since June, lowering it to 4.50%. "The CAD is fighting against a tidal wave of negative sentiment," Osborne said. "The latest CFTC data showed a huge accumulation of bearish CAD positioning." Speculators have raised their bearish bets on the Canadian dollar to a record level, data from LSEG and the U.S. Commodity Futures Trading Commission (CFTC) showed on Friday. As of July 23, net short positions had increased to 161,603 contracts from 132,473 in the prior week. The price of oil, one of Canada's major exports, fell on worries about weaker demand growth from China. U.S. crude oil futures were down 1.3% at 74.86 a barrel. Canadian government bond yields moved lower across the curve. The 2-year was down 7.2 basis points at 3.505%, after earlier touching its lowest level since May 2023, at 3.500%. Sign up here. https://www.reuters.com/markets/currencies/c-steadies-after-nine-straight-days-declines-2024-07-30/

2024-07-30 17:31

July 30 (Reuters) - Former Warner Music chairman Edgar Bronfman Jr. is still in talks with bankers about a potential bid for Paramount Global's (PARA.O) , opens new tab parent, National Amusements, Axios reported on Tuesday, citing sources. David Ellison's Skydance Media had struck a deal earlier this month to acquire Paramount, which included a 45-day "go shop" window to find a better offer. If Paramount receives another offer, which Skydance does not match, it would pay a $400 million break-up fee. Skydance and its deal partners would acquire National Amusements for $2.4 billion in cash. Ellison's media firm would subsequently merge with Paramount, offering $4.5 billion in cash or stock to shareholders and providing an additional $1.5 billion for Paramount's balance sheet. Bronfman was looking to offer between $2 billion and $2.5 billion for National Amusements, the private company that holds the Redstone family's controlling interest in Paramount. Paramount declined to comment on the Axios report. A spokesperson for Bronfman told Reuters that he is currently considering his options. CNBC reported last Friday that billionaire Barry Diller signaled his digital-media conglomerate IAC (IAC.O) , opens new tab was no longer in the race to buy Paramount and that he would be "shocked" if there was not a huge amount of litigation on the planned merger. The merger with Skydance Media was met with a court challenge last week after Paramount's investor Scott Baker sued to block the deal citing lower payout for shareholders. Sign up here. https://www.reuters.com/markets/deals/edgar-bronfman-jr-still-pursuing-deal-paramount-axios-reports-2024-07-30/