2024-07-23 21:52

SAO PAULO, July 23 (Reuters) - Brazilian planemaker Embraer (EMBR3.SA) , opens new tab expects global passenger traffic in the next 20 years to grow at a faster pace than it had previously forecast but sees less room for regional aircraft deliveries, it said on Tuesday. WHY IT'S IMPORTANT Air travel boomed right after the pandemic but airlines cautioned at the Farnborough Airshow this week that demand has been normalizing as travelers baulk at higher fares while carriers face delivery delays and supply chain constraints. Embraer is the world's third-largest planemaker and focuses on up-to-150-seat aircraft, sitting just below Airbus' (AIR.PA) , opens new tab and Boeing's (AIR.PA) , opens new tab best-selling A320 and 737 families and rivaling the Airbus A220. KEY QUOTES "Pandemic aftershocks, like supply chain disruptions, the deceleration of the global economy, and uncertainties from multiple geopolitical conflicts will continue to affect the market," Embraer's commercial aviation head Arjan Meijer said. "The market sizes and demand patterns are simply too varied to support a fleet strategy focused solely on larger aircraft. We believe an optimal mix of sub-150-seat jets and larger narrowbodies is more conducive to the new environment." BY THE NUMBERS Embraer said traffic as measured by revenue passenger kilometers (RPK) should grow at an annual rate of 4% between this year and 2043, above the 3.2% growth it had forecast last year for the 2023-2042 period but still below pre-pandemic. China and Asia would drive growth in the next two decades with a 5% annual expansion, while Latin America, Europe and North America would post growth of 4.9%, 3.3% and 2.4%, respectively. Demand for new up-to-150-seat aircraft over the next 20 years was estimated at 10,500, a deceleration from the 11,000 new planes forecast last year. Their market value would total $640 billion. Sign up here. https://www.reuters.com/business/aerospace-defense/embraer-bumps-up-estimate-global-traffic-growth-next-two-decades-2024-07-23/

2024-07-23 21:48

NEW YORK, July 24 (Reuters) - A look at the day ahead in Asian markets by Alden Bentley Markets were subdued ahead of second quarter earnings from Alphabet (GOOGL.O) , opens new tab and Tesla (TSLA.O) , opens new tab released after the close of regular trade on Tuesday. The first of the market-leading mega caps to report left a mixed picture for after-hours trade with scope to spill across time zones on Wednesday. Shares of both companies fell despite reporting higher-than-expected revenue. Other than earnings there is not much on the radar, economic indicator- wise, until Thursday's advance U.S. second quarter GDP and Friday's June Personal Consumption Expenditures Price Index, which markets are betting will smooth the way for a Fed easing in September. That leaves politics. With the new U.S. election landscape, markets are preparing for greater volatility, although there was little sign of it Tuesday. Vice President Kamala Harris has all but sewed up the nomination as the Democratic presidential candidate to face Republican Donald Trump on Nov. 5, after President Joe Biden withdrew from the race on Sunday. Senate Majority Leader Chuck Schumer and House of Representatives Minority Leader Hakeem Jeffries supported Harris's bid in the election and a majority of party delegates have committed to her. In a Reuters/Ipsos national poll conducted Monday and Tuesday, Harris led Trump 44% to 42%, a difference within the 3-percentage-point margin of error. Harris and Trump were tied at 44% in a July 15-16 poll, and Trump led by one percentage point in a July 1-2 poll, both within the same margin of error. While the CBOE's VIX Volatility Index (.VIX) , opens new tab fell back to near 14.5 on Tuesday it was at a near two-month high above 17 two days ago amid caution ahead of the vote in what has already been one of the most dramatic election years in history. Whoever gets elected is bound to take a tough line with China on trade and Taiwan. It's not clear what will put a floor under Chinese stocks, which posted their biggest one-day slide in six months on Tuesday, after Beijing's aggressive stimulus measures post Party Plenum failed to shore up confidence. Meanwhile, Japan's Nikkei .225 is just off five straight down days in part due to the weak yen. The currency rose to 155.615 per dollar by late U.S. trade after a senior ruling party official called for the BOJ to normalize monetary policy and keep interest rates steady. Taiwan's stock market shrugged off those losses and is Asia's best performer this year, thanks in large part to TSMC (2330.TW) , opens new tab, Asia's most valuable listed company, which rose more than 4% Tuesday. But concerns remain over Washington's likely curbs on semiconductor sales to China. Four of the five remaining Magnificent 7 mega caps - Meta (META.O) , opens new tab, Microsoft (MSFT.O) , opens new tab, Amazon (AMZN.O) , opens new tab and Apple (AAPL.O) , opens new tab - report next week. Investors must wait until later in August for AI super-mega Nvidia's (NVDA.O) , opens new tab numbers. Here are key developments that could provide more direction to markets on Wednesday: - South Korea Consumer Sentiment (July) - Flash PMI Australia (July) - Flash PMI Japan (July) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphics-2024-07-23/

2024-07-23 21:35

CHICAGO, July 23 (Reuters) - Colorado began requiring dairies to test milk supplies for bird flu every week, the state's veterinarian told Reuters on Tuesday, as a federal team arrived to help investigate an escalating outbreak in cows that has spread to chickens and people. The state's new mandate , opens new tab aims to identify additional farms that could be infected and spread the disease to other dairies or poultry flocks, after the largest cluster of human cases to date in the United States occurred on a Colorado farm this month. Bird flu infections linked to dairy cows have wiped out 3.1 million egg-laying chickens in Colorado in recent weeks, and poultry workers also tested positive. Colorado has confirmed infections in 47 dairy herds since the U.S. outbreak in cows began in late March, with about 60% of its cases detected in the past month, according to U.S. data. Nationally, 13 states have reported infections in about 168 herds since spring. In Colorado, the loss of millions of chickens triggered the requirement for licensed dairies with lactating cows to test bulk milk supplies weekly, state veterinarian Maggie Baldwin said in an interview. About 70% of the state's laying hens were eliminated, according to U.S. data. "We really said what we're doing right now is not effective and we need to change strategy," Baldwin said. The U.S. Department of Agriculture since late April has required testing for lactating cows that are being shipped over state lines. The agency later launched a voluntary program to test bulk milk supplies. A USDA epidemiological "strike team" arrived in Colorado this week to assess how the virus may be spreading among dairies there, Baldwin said. Workers or vehicles can carry the virus from farms. If mandated testing reveals additional infections, Colorado can take further steps to contain the virus, Baldwin said. Six Colorado farm workers tested positive for bird flu in July after culling chickens at an infected egg farm, the U.S. Centers for Disease Control and Prevention said. More than 150 workers were exposed to the infected poultry, and 69 developed symptoms and were tested, according to the Colorado Department of Public Health and the Environment. Colorado's public health department reported a presumptive positive human case on a different Colorado poultry farm on Friday. About 350 people were involved in culling chickens at that farm, where 23 workers developed symptoms and were tested, the department told Reuters. The CDC has not confirmed the presumptive positive case. Testing remains in progress, Colorado's health department said on Tuesday. Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/colorado-ramps-up-bird-flu-response-requires-milk-testing-2024-07-23/

2024-07-23 21:32

GM raises adjusted pre-tax profit projection for the year to $13 billion to $15 billion from previous range of $12.5 billion to $14.5 billion GM shifts focus to next-generation Chevrolet Bolt for Cruise self-driving unit GM's China operations face scrutiny, $104 million loss reported DETROIT, July 23 (Reuters) - General Motors (GM.N) , opens new tab reported second-quarter profit and revenue on Tuesday that beat Wall Street's expectations, and raised its annual profit forecast for a second time this year, buoyed by strong pricing and demand for gas-powered trucks. The company's shares fell 6.4%, however. The selloff could be related to a number of factors, analysts said, including a shift in the company's Cruise self-driving vehicle strategy, its continued losses in China and a broader concern that the auto industry will become less disciplined on inventory levels and buyer incentives. "We believe this is just a knee-jerk reaction and the GM quarter was a robust one which should drive the stock higher over the coming weeks and months," said Dan Ives, analyst at Wedbush Securities. The Michigan automaker is leaning heavily on its gasoline-engine offerings to fuel its profits through a slower-than-anticipated transition to electric vehicles. GM executives say the company has laid the foundation necessary to meet ambitious ramp-up targets on EVs. "We're encouraged by the early results we're seeing in EVs now that we can build at scale," CFO Paul Jacobson said in a call with reporters. A report from the Federal Reserve last week showed motor-vehicle production surged to a four-year high in June. GM increased its adjusted pre-tax profit projection for the year to $13 billion to $15 billion, from its previous range of $12.5 billion to $14.5 billion. The company reported adjusted earnings per share of $3.06 that beat Wall Street's average estimate of $2.75, according to LSEG data. The carmaker reported $48 billion in revenue for the three-month period, surpassing analysts' consensus of $45.5 billion in the June quarter. Executives at GM also provided an update on its Cruise self-driving unit, saying it will focus its development efforts on a next-generation Chevrolet Bolt rather than its planned futuristic Origin vehicle that would not have a steering wheel or other human controls. GM's stock has outperformed its rivals and the S&P 500 in 2024. The company's share price has increased 38% this year as of Monday, while cross-town rival Ford Motor (F.N) , opens new tab has notched an 18% increase, and Jeep-maker Stellantis (STLAM.MI) , opens new tab lost 11%. EV INVESTMENTS AND RETREAT GM received another cash boost from the U.S. government this summer to support its EV ambitions, although it has walked back many of its targets during the last year. The Biden administration said this month that it would award GM $500 million to convert one of its Michigan gas-engine vehicle-assembly plants to produce EVs. GM last week declined to reiterate a target of achieving 1 million units of EV production capacity in North America by the end of 2025. The carmaker also recently lowered its projected EV output for the year, now projecting the higher end of its 2024 production to be 250,000 units, down from a prior forecast of 300,000 units. CEO Mary Barra told investors that GM would delay the opening of its Orion Assembly EV truck plant by six months, until mid-2026. Still, GM executives said the company is scaling up production of the Chevrolet Equinox EV and plans to launch several new battery-powered models over the coming months. "GM seems to be showing that even at lower production they'll be able to rationally roll out EVs and not overspend on that," said Tim Piechowski, portfolio manager with ACR Alpine Capital Research in St. Louis, which owns GM shares. GM reported a 14% increase in net income over the year-ago period to $2.9 billion. Although the Detroit automaker has kept its sights set on transitioning its lineup to EVs, Barra has said it plans to introduce plug-in hybrids in 2027. Ford is currently benefiting from significant increases in hybrid sales. Ford is set to release its second-quarter results Wednesday. The outcome of the U.S. presidential election in November will also likely affect GM's plans for battery-powered vehicles. Former President Donald Trump has criticized President Joe Biden's approach on EVs, which have included significant government subsidies. GM is also facing increasing investor scrutiny on its operations in China, which in the past decade have shifted from being a profit engine to a drain on the company's finances. The company recorded a $104-million quarterly loss in China, a disappointment after executives said they expected to be profitable in the region for the second quarter. "It's a difficult market right now. And frankly, it's unsustainable, because the amount of companies losing money there cannot continue indefinitely," Barra said. Jacobson said GM would work with its joint-venture partner in China to restructure its business and plans to cut spending there. "It's clear that the steps that we have taken, while significant, have not been enough," Jacobson said. Last month, a leading automotive analyst called on the Detroit Three to withdraw from China to save cash to spend on costly EV production. Sign up here. https://www.reuters.com/business/autos-transportation/gm-beats-second-quarter-expectations-raises-forecast-again-2024-07-23/

2024-07-23 21:25

July 23 (Reuters) - Mattel (MAT.O) , opens new tab topped Wall Street estimates for second-quarter profit on Tuesday, aided by the toymaker's tight control on costs while posting a surprise drop in sales. The Barbie maker has set a target of saving $200 million in costs by 2026 through initiatives including streamlining its supply chain and plans to exit or out-license underperforming product lines. The company's adjusted profit of 19 cents per share beat estimates of 17 cents, according to LSEG data. The Hot Wheels maker's shares were up 1.3% in trading after the bell. They had gained as much as 20% on Monday after Reuters reported that buyout firm L Catterton had approached Mattel with an acquisition offer. Net sales fell 1% to $1.08 billion, amid a larger shift among consumers to spend more on experiences and services. Analysts had projected a marginal rise to $1.10 billion. Mattel, which reiterated its annual forecasts, has struggled since the blockbuster commercial success and acclaim of the Barbie movie boosted sales last year. CEO Ynon Kreiz said on Tuesday Mattel was well-positioned for the second-half, with new product innovation and increased retail support. "We do expect the toy industry to decline modestly in the year, but this is an improvement from our outlook at the start of the year ... And based on our internal research, we're seeing that more consumers are planning on purchasing toys this holiday season," Kreiz added. Monthly sales reports from Costco (COST.O) , opens new tab have indicated a pickup in demand for toys since April. Mattel's sales should bounce back in the second-half by expanding the breadth of its brands, said Emarketer analyst Zak Stambor. "Rolling out inclusive Barbie dolls and Fisher Price Imaginext toys featuring Batman and Star Wars should drive consumers to spend," Stambor said. Sign up here. https://www.reuters.com/business/retail-consumer/toymaker-mattel-tops-quarterly-profit-estimates-cost-controls-2024-07-23/

2024-07-23 20:55

July 23 (Reuters) - EQT Corp (EQT.N) , opens new tab posted a smaller-than-expected second-quarter loss on Tuesday, as the natural gas producer benefited from higher sales volumes, sending shares up nearly 1% after the bell. Natural gas prices (.NGc1) , opens new tab rose in April and May, prompting some drillers, including EQT and Chesapeake Energy (CHK.O) , opens new tab, to boost output so far in June and July. EQT is the nation's biggest gas producer, but Chesapeake is on track to take its place after its planned merger with Southwestern Energy(SWN.N) , opens new tab. Total sales volume for the April-June quarter rose to 508 billion cubic feet equivalent (bcfe), compared with 471 bcfe in the year-ago quarter, well above EQT's prior forecast of 455 bcfe to 505 bcfe for the quarter. Average realized prices rose to $2.33 per thousand cubic feet equivalent (mcfe) in the reported quarter, from $2.11 per mcfe a year earlier. The U.S. Energy Information Administration (EIA) expects domestic natural gas production to decline for the rest of the year, while demand will rise to record highs. If the EIA's projection is right, 2024 would be the first time output declines since 2020, when the COVID-19 pandemic cut demand for the fuel. EQT left its full-year sales volume forecast of 2,100 bcfe to 2,200 bcfe unchanged. Last month, EQT had reinstated the 1 bcf/d of natural gas production it had previously curtailed. Smaller peer Range Resources(RRC.N) , opens new tab, which beat second-quarter profit estimates, also left its annual production forecast unchanged, adding that it expects production to be near the high-end of its forecast range of 2.12 bcfe/d to 2.16 bcfe/d. Earlier this week, EQT closed its acquisition of Equitrans Midstream. The firm expects the deal to result in about $150 million of savings relative to initial expectations, accelerate synergies and commence a deleveraging plan. EQT, which operates in the Appalachian Basin, posted an adjusted loss of 8 cents per share in the April-June quarter, compared with analysts' estimate of a loss of 20 cents per share, according to LSEG data. Sign up here. https://www.reuters.com/business/energy/natgas-producer-eqt-posts-smaller-than-expected-q2-loss-2024-07-23/