2024-07-30 10:01
July 30 (Reuters) - Meta Platforms (META.O) , opens new tab is expected to report a 20% rise in quarterly revenue, helped by strong ad sales driven by the Olympics and elections in several countries, but investors will want to see if its spending on AI is starting to yield returns. The social media giant, like its tech rivals Google-parent Alphabet (GOOGL.O) , opens new tab and Microsoft (MSFT.O) , opens new tab, is spending billions on tech infrastructure to support AI development. In April, Meta's upward revision in full-year expenses shaved off nearly $170 billion from its market capitalization in a single day. Alphabet's warning last week that capital expenses would stay high this year, overshadowed a jump in ad sales and pushed its stock down. Meta is betting on an open-source approach for its generative AI push. The company released its mostly free Llama 3.1 artificial intelligence model last week, and said developers can use and modify its AI models free of charge. It has burnished its ad-buying products with AI tools and introduced new AI features such as a chat assistant to drive engagement on its social media properties. On Monday, it said it would roll out a new tool called AI Studio that would allow users to create, share and design personalized AI chatbots. "We are bullish on Meta's position as a key pillar of open-source AI," Jefferies analysts said, adding that the company could potentially unlock new revenue streams by licensing its AI models or creating AI apps. Meta shares have risen 32% this year, compared with a near 16% rise in the tech-heavy Nasdaq Composite index (.IXIC) , opens new tab. The company will also need to show its bread and butter ad business is thriving when it reports second-quarter results on Wednesday. GroupM, one of the world's largest media buying firms, raised its 2024 global advertising growth forecast to 7.8% in June, from 5.3% in December, which augurs well for Meta. Smaller ad-dependent companies Pinterest (PINS.N) , opens new tab and Snap (SNAP.N) , opens new tab are scheduled to report results on Tuesday and Thursday, respectively. "We remain positive on Meta and think Reels, Messaging and AI-driven ad improvements are still early, and could lead to positive product surprises and revenue upside," analysts at BofA Securities said. "With political spend, and potential TikTok ban in 1Q'25, Meta could also see an ad spend benefit in 2H'24." Sign up here. https://www.reuters.com/technology/meta-q2-ad-sales-expected-rise-focus-ai-roadmap-costs-2024-07-30/
2024-07-30 07:54
SEOUL, July 30 (Reuters) - South Korea's monetary policy board was divided over when to cut interest rates with a majority of the seven-member board concerned about lower borrowing costs leading to price increases in the housing market, July meeting minutes showed on Tuesday. The Bank of Korea said at the meeting that it was time to prepare for a pivot to interest rate cuts after leaving the benchmark interest rate (KROCRT=ECI) , opens new tab steady at a 15-year high of 3.50% for the 12th straight meeting, as expected. While the decision was unanimous, the seven-member board appeared divided over when to act, as some fretted that lowering rates could lead to price increases in Seoul's already expensive housing market, while others were increasingly focused on preserving a soft landing for the economy. At least five board members said financial stability risks were of concern to the central bank due to rising home prices. "In summary, inflation is easing towards (the bank’s) target level but we should still be on alert for upside risks, and risks related to a reduction in interest rates are bigger now due to household debt increases and the home price increases we see now," one of the seven board members said. Worries about inflation have recently been replaced by concerns that household debt is increasing fast and consumption is slowing rather too quickly. Any interest rate reductions should be carried out "after factoring in the medium-term inflation level in relation to our inflation target, macroeconomic policy changes as well as FX market changes," another board member said. Headline inflation for June slowed to an 11-month low of 2.4%, close to its target of 2%. South Korea's economy unexpectedly shrank in the second quarter, logging the sharpest contraction since 2022 as slumping consumer spending undermined an export boom to reinforce expectations that an interest rate reduction could come in the coming months. Sign up here. https://www.reuters.com/markets/asia/bank-korea-board-split-when-cut-interest-rates-minutes-show-2024-07-30/
2024-07-30 07:52
EVIA, Greece, July 30 (Reuters) - More than 200 firefighters backed up by helicopters and water-carrying planes battled a wildfire on Greece's second-biggest island of Evia for a second day on Tuesday as authorities ordered the evacuation of two villages. The fire broke out near the village of Petries in the centre of the island at about 3 p.m. (1200 GMT) on Monday and strong winds fuelled its spread. While the situation had slightly improved on Tuesday, flare ups remain a risk due to the windy conditions, a fire service spokesperson said. Thirteen aircraft and six helicopters were at the scene on Tuesday about 60 km (37 miles) northeast of the capital, Athens. A coastguard vessel was on standby overnight for possible evacuations by sea. "It was - and is - a difficult fire as it started in a difficult spot," Climate Crisis and Civil Protection Minister Vassilis Kikilias, who travelled to Evia late on Monday, was quoted as saying by state broadcaster ERT. Wildfires in Greece have become more frequent in recent years during increasingly hot, dry summers that scientists link to climate change. Last year, more than 8,000 blazes broke out, fire brigade data shows. Prime Minister Kyriakos Mitsotakis said Greece had been dealing with "a very difficult summer" in terms of climate conditions. "We still have a very difficult month, August, ahead of us and obviously we all need to be on high alert," he told ministers during a cabinet meeting. Since May, hundreds of wildfires have burned across the country, which just recorded its hottest June on record and its longest heatwave. Blazes have been turbocharged by strong winds and drought in several parts of the country. In 2021, a devastating wildfire raged for nearly a week in northern Evia, turning more than 115,000 acres (46,500 hectares) of land into ashes, destroying homes and killing animals. Sign up here. https://www.reuters.com/business/environment/wildfire-rages-greek-island-evia-second-day-2024-07-30/
2024-07-30 07:38
July 30 (Reuters) - European shares opened higher on Tuesday, boosted by gains in technology and oil stocks, while investors held back from placing big bets ahead of the Federal Reserve's meeting and Euro zone inflation data. The pan-European STOXX 600 index (.STOXX) , opens new tab was up 0.2% at 512.61 points by 0716 GMT, with the food and beverages sector (.SX3P) , opens new tab capping gains. Spirits maker Diageo (DGE.L) , opens new tab fell 8% after it reported a 4.8% decline in annual profit that was short of analyst expectations. Basic resources (.SXPP) , opens new tab fell 0.7% as base metals prices largely slipped due to slowing global growth momentum and risk-off sentiment, with aluminium and zinc hitting three-month lows. BP (BP.L) , opens new tab was up 2% after the oil giant reported second-quarter profit of $2.76 billion, beating market expectations, while increasing its dividend and extending its share repurchasing programme. The company's update boosted the oil sector (.SXEP) , opens new tab by 0.7%. Among other individual stock moves, Standard Chartered (STAN.L) , opens new tab gained 4.7% after the bank announced its largest share buyback of $1.5 billion and raised its annual earnings forecast. St James's Place (SJP.L) , opens new tab soared 17.8% as the British wealth manager said it plans to cut tens of millions of pounds of costs. The technology sector (.SX8P) , opens new tab was up 0.5% ahead of Microsoft's (MSFT.O) , opens new tab results later in the day. Meanwhile, the U.S. Federal Reserve will begin its two-day monetary policy meeting later in the day. Investors also await Euro zone inflation data, expected at 0900 GMT. Sign up here. https://www.reuters.com/markets/europe/european-shares-open-higher-ahead-fed-meeting-euro-inflation-data-2024-07-30/
2024-07-30 07:30
Hillsides collapse in heavy rain Death toll jumps to 106 Rescue hampered by rain, bridge collapse KOCHI, India, July 30 (Reuters) - Landslides swept through tea estates and villages in southern India's Kerala on Tuesday, killing at least 106 people while they slept as unexpected heavy rain collapsed hillsides and triggered torrents of mud, water and tumbling boulders. The hillsides gave way after midnight following torrential rainfall on Monday in the Wayanad district of Kerala, a state known as one of India's most popular tourist destinations. Most of the victims were tea estate workers and their families who lived in small houses or makeshift shelters. Television images showed rescue workers scrambling through uprooted trees and flattened tin structures as boulders lay strewn across the hillsides and muddy water gushed through. Rescuers were being pulled across a stream, carrying stretchers and other equipment to rescue people. At least 106 people were killed in the landslides, 128 injured and dozens unaccounted for, state authorities said. Local Asianet TV put the death toll higher at 119. Tuesday's landslides are the worst disaster in the state since 2018 when heavy floods killed almost 400 people. "There are still people who are trapped under the ground and those who have been swept away," Kerala Chief Minister Pinarayi Vijayan told reporters. "The rescue operation will continue with all possible strength and means." More than 3,000 people had been moved out of the area and accommodated in 45 relief camps in the district, he said, adding that hundreds of personnel, including army soldiers, using drones and sniffer dogs were searching for survivors. Vijayan, a survivor who gave only one name, said he woke up in the middle of the night to feel the ground shake and see electric poles fall. "A couple of neighbours and I ran to nearby houses where we heard cries for help and took some of the injured to safety," he told Asianet. "My father, mother, sister and her daughter were in the house and as I went towards them the next landslide hit with a roaring sound," he said. "I clung to a window bar as I saw my mother and sister disappear under the mud, I couldn't do anything." "UNPREDICTABLE RAIN" Army engineers were deployed to help build a replacement bridge after the one that linked the affected area to the nearest town of Chooralmala was destroyed, the chief minister's office said in a statement. "A small team has managed to cross the bridge across the river and reach (the site) but we will need to send many more to provide help and to start rescue operations," Kerala chief secretary V. Venu told reporters. A military helicopter managed to land at Mundakkai, one of the worst hit areas where about 250 people were stranded on a hilltop and at a tourist resort without enough food and medicine. They could not be accessed by air earlier due to bad weather, officials said. This was expected to speed up rescue efforts and the injured would be evacuated first, they said. Although the area is a well known tourist destination, local residents were the most affected as all tourist excursions had been halted since Monday due to the rain. Chief Minister Vijayan said that many people had been moved out of the area before the landslides due to the heavy rain and this had helped reduce the toll. The region was forecast to get 204 millimetres (8 inches) of rainfall but ended up getting 572 millimetres (22.5 inches) over a period of 48 hours, he said, adding that in the wake of "climate change ... rainfall and other natural disasters are sometimes unpredictable". More rains were forecast across the state for the next five days, he said, and urged people to take precautions. Opposition leader Rahul Gandhi, who won a seat in Wayanad in the recent general election, but resigned as he was also elected in his family bastion in the north, said he had spoken to the state chief minister to ensure coordination with all agencies. "The devastation unfolding in Wayanad is heartbreaking," he said in a message on X. "I have urged the union government to extend all possible support." Sign up here. https://www.reuters.com/world/india/several-feared-dead-after-landslides-indias-kerala-local-media-report-2024-07-30/
2024-07-30 07:28
BP boosts dividend by 10%, extends share buybacks Refining profits weighed by weak fuel demand, CEO says BP to develop new Gulf of Mexico oilfield LONDON, July 30 (Reuters) - BP (BP.L) , opens new tab increased its dividend and extended its share repurchasing programme on Tuesday as it reported a forecast beating second-quarter profit of nearly $2.8 billion, with weak refining offset by stronger oil prices and retail earnings. The result, which topped analysts' estimates by 9%, is likely to ease pressure on CEO Murray Auchincloss after BP fell short of profit expectations in the previous two quarters. The 53-year-old Canadian, who took office in January, has vowed to revamp BP's operations and focus on the most profitable ones, mostly in oil and gas. In a sign of change from his predecessor Bernard Looney's strategy to grow renewables and reduce fossil fuel output, BP said it had given a green light to the development of the Kaskida oilfield in the U.S. Gulf of Mexico, a highly complex project in deep geological formations. The field is expected to start production in 2029 and have a capacity of 80,000 barrels of oil per day (bpd). The company also announced it would go ahead with the development of a low-carbon hydrogen project at its Castellon refinery in Spain. BP shares were up 1.4% at 1153 GMT, compared with a 0.15% gain for the broader European energy index (.SXEP) , opens new tab. The stock has underperformed rivals this year, remaining largely flat, amid investor concern over the British company's energy transition strategy and doubts it will meet its 2025 earnings targets. BP is working to exceed its target to reduce annual costs by $2 billion by the end of 2026, Auchincloss said in an analyst presentation posted online. Reuters reported in June that the company had imposed a hiring freeze and suspended investments in new offshore wind projects. "We are driving focus across the business and reducing costs, all while building momentum in our drive to 2025," Auchincloss said in a statement. WEAK REFINING BP lifted its dividend by 10% to 8 cents per share from 7.27 cents, in line with analysts' expectations, based on LSEG data. It also maintained the rate of its share buyback programme at $1.75 billion over the next three months and said it remains committed to buying a total of $14 billion of shares this year and next. Underlying replacement cost profit, the company's definition of net income, reached $2.76 billion in the three months to June, exceeding a forecast of $2.54 billion in a company-provided survey of analysts. That compared with a $2.7 billion profit in the previous quarter and $2.6 billion a year earlier. Weaker refining margins due to lower diesel demand and a higher level of refinery maintenance weighed on the result, but were offset by higher oil prices in the quarter, strong retail margins and a lower than expected tax rate. BP's oil trading contribution was weak following a strong showing in the previous quarter, it said. Auchincloss told Reuters that global demand for gasoline and diesel was weak but that inventories were expected to come down during the summer driving season, supporting refining margins. Last week, France's TotalEnergies reported a 6% drop in second quarter profit, also hurt by a tumble in European refining margins. BP will maintain capital expenditure at $16 billion per year in 2024 and 2025. The company also took a $1.3 billion impairment charge in the quarter, mainly related to capacity reduction at its Gelsenkirchen refinery in Germany. BP's net debt decreased by $1.4 billion in the quarter to $22.6 billion and its debt-to-equity ratio, known as gearing, fell to 21.6% from 22% at the end of March. Sign up here. https://www.reuters.com/business/energy/bp-posts-forecast-beating-28-bln-quarterly-profit-raises-dividend-2024-07-30/
