2024-07-15 17:43

Familiies of crash victims will have a week to file objections Boeing to plead guilty to defrauding FAA over 737 MAX software Boeing to spend $455 million on safety and compliance over three years WASHINGTON, July 15 (Reuters) - A U.S. judge on Monday set a fast schedule to consider the objections of relatives of those killed in two fatal 737 MAX crashes to the Justice Department's plea deal with Boeing (BA.N) New Tab, opens new tab. The planemaker on July 7 agreed in principle to plead guilty to a criminal fraud conspiracy charge and pay a fine of $243.6 million. U.S. District Judge Reed O'Connor in Texas said after the Justice Department files the plea agreement, relatives of those killed will have a week to file objections and then the government and Boeing will have two weeks to respond. The families will then have five days to file a response. The deal is a "slap on the wrist," Erin Applebaum, a lawyer at Kreindler & Kreindler LLP who represents some of the victims' relatives, said last week. Boeing plans to plead guilty to conspiring to defraud the Federal Aviation Administration after the government said the planemaker knowingly made false representations about key software for the 737 MAX. The Justice Department said in May the planemaker had breached a 2021 deferred prosecution agreement. O'Connor previously criticized Boeing, saying in 2023: "Boeing’s crime may properly be considered the deadliest corporate crime in U.S. history." Boeing 737 MAX crashes in Indonesia and Ethiopia in 2018 and 2019 killed a total of 346 people and led to a 20-month grounding of the best-selling plane. The Justice Department said last week it hoped to file the plea agreement by July 19 but said it may need a few additional days. The department will file a factual statement supporting the government's breach determination. As part of the deal, Boeing agreed to spend at least $455 million over the next three years to boost safety and compliance programs. Boeing's board will meet with relatives of those killed in the MAX crashes. The deal also imposes an independent monitor, who will have to publicly file annual progress reports, to oversee the firm's compliance. Boeing will be on probation during the monitor's three-year term. The Justice Department will file in the coming days a document detailing "the respective terms of Boeing’s compliance obligations and the independent compliance monitor." A panel blew off a new Boeing 737 MAX 9 jet during a Jan. 5 Alaska Airlines (ALK.N) New Tab, opens new tab flight, just two days before the 2021 deferred agreement that had shielded the company from prosecution over the 2018 and 2019 crashes expired. Boeing faces a separate ongoing criminal probe into the Alaska Airlines incident, which did not result in any serious injuries. Sign up here. https://www.reuters.com/legal/us-judge-sets-quick-schedule-consider-family-objections-boeing-plea-deal-2024-07-15/

2024-07-15 17:34

LA PAZ, July 15 (Reuters) - Bolivian President Luis Arce on Monday announced the discovery of a 1.7 trillion cubic foot (TCF) natural gas reserve located north of the country's administrative capital, La Paz. The landlocked South American nation is facing an energy crunch linked to years of declining oil and gas production that has hit the country's currency reserves, and the state energy firm YPFB said earlier this month it is looking for ways to overcome recent fuel shortages. "A 1.7 TCF reserve is confirmed, being the most important discovery for Bolivia since 2005," Arce said in a speech at the government palace. "It will likely make for the third best producing field in the whole country," Arce said, adding that the field has been named the Mayaya Centro-X1 IE field and will be part of YPFB's Upstream Reactivation Plan. The Mayaya Centro-X1 field will add Bolivia's existing gas reserves, which stood at 8.95 TCF in December 2018, the most recent official data available. Bolivia's Natural gas production decreased from 56.6 million cubic meters per day (MMm3d) in 2016, to 31.9 MMm3d in 2023, according to YPFB data. Sign up here. https://www.reuters.com/business/energy/bolivia-govt-announces-natural-gas-mega-field-biggest-discovery-since-2005-2024-07-15/

2024-07-15 17:30

NEW YORK, July 15 (Reuters) - The value of crude oil and fuel trade between the United States and Mexico fell nearly 15% to $66.5 billion in 2023, despite an increased trade volume, the U.S. Energy Information Administration (EIA) said on Monday. Lower fuel prices last year more than offset the increase in energy trade volume between the two countries, the EIA said. WHY IT'S IMPORTANT Mexico was the largest export market for U.S. petroleum products in 2023, including gasoline, diesel fuel and propane. CONTEXT Global crude oil prices slipped in 2023 amid geopolitical turmoil and demand concerns, with the Brent crude oil spot price averaging $82.41 a barrel compared with $100.94 a barrel in 2022. BY THE NUMBERS U.S. crude oil imports from Mexico averaged 733,000 barrels per day in 2023, 15% more than in 2022, but the value of imports shrank 4% due to lower crude oil prices. U.S. petroleum product exports to Mexico averaged 1.2 million barrels a day in 2023, up 1% from 2022. However, the value of exports dropped 9% when adjusted for inflation. U.S. natural gas exports to Mexico averaged 6.2 billion cubic feet per day in 2023, 8% more than in 2022. Due to lower fuel prices, the trade value fell by 52% from 2022. Sign up here. https://www.reuters.com/business/energy/us-mexico-energy-trade-value-dipped-2023-despite-rise-volume-eia-says-2024-07-15/

2024-07-15 17:25

NEW YORK, July 15 (Reuters) - Macy's (M.N) New Tab, opens new tab scrapped talks with an investor group comprising Arkhouse Management and Brigade Capital that had offered to acquire the department store chain for $6.9 billion, sending its shares down 15% on Monday. In a statement, Macy's said it terminated the discussions with the two investors because their buyout proposal "fails to provide compelling value" and it was uncertain how it would be financed. The latest development ends a monthslong effort to take Macy's private and comes weeks after the company disclosed that the investor group had revised its offer for a second time to acquire the rest of the department store chain that it did not already own for $24.80 apiece, up from an earlier $24-per-share offer. The revised bid valued Macy's at $6.86 billion and offered a nearly 43% premium to the stock's close on Dec. 8, when news of the bid emerged. Arkhouse, which has a 4.4% stake in Macy's, and Brigade Capital Management did not immediately respond to a Reuters request for comment. Macy's opened its books to the investor group in March and allowed two of Arkhouse's nominees to join its board's finance committee, which was responsible for overseeing the evaluation of the buyout proposal. Macy’s said it provided the investor group with more information, documents and time than is typically required to obtain financing for a public company acquisition. A person familiar with the matter said there was "no actionable proposal" from the investor group after four months of due diligence. Macy's said it is now planning to focus on its turnaround plan spearheaded by new CEO Tony Spring ahead of the crucial holiday shopping season. Earlier this year, the department store operator announced job cuts and 150 store closures through 2026 as part of the turnaround plan. "It seems like ... it didn't work out to Macy's satisfaction. I think Macy's was probably anticipating that it would be raised by a few dollars, not 80 cents," Morningstar analyst David Swartz said. A hostile acquisition by the investor group would be extremely expensive and there is no guarantee it would work even if the offer is raised again, since Macy's is looking to focus on its new strategy, Swartz said. Macy's raised its annual profit forecast in May betting on Spring's strategy, though sluggish demand pressured sales. Macy’s net sales of $23.1 billion in 2023 was it lowest in nearly two decades, excluding 2020. Net sales peaked at $28.11 billion in fiscal 2014. As part of its new strategy, Macy's has said it plans to open 15 new Bloomingdale's stores and at least 30 new Bluemercury stores over the next three years to boost growth of its better-performing luxury brands. Peer Nordstrom (JWN.N) New Tab, opens new tab has also become a takeover target recently. Sign up here. https://www.reuters.com/markets/deals/macys-terminates-discussions-with-arkhouse-brigade-2024-07-15/

2024-07-15 17:22

Canadian dollar weakens 0.3% against the greenback Touches weakest since July 3 at 1.3674 Canadian businesses expect price growth to slow 2-year yield hits a six-month low at 3.763% TORONTO, July 15 (Reuters) - The Canadian dollar weakened to a 12-day low against its U.S. counterpart on Monday as a Bank of Canada business survey pointed to a decline in inflation, raising bets the central bank will cut interest rates further this month. The loonie was trading 0.3% lower at 1.3670 to the U.S. dollar, or 73.15 U.S. cents, after touching its weakest intraday level since July 3 at 1.3674. Canadian "businesses expect the growth of their input prices and selling prices to slow, suggesting that inflation will continue to decline over the coming year," the Bank of Canada said in its second-quarter Business Outlook Survey. "This expected easing in inflationary pressures will be good news for the Bank of Canada as policymakers decide whether to cut interest rates again this month," Andrew Grantham, a senior economist at CIBC Capital Markets, said in a note. Chances of a rate cut at next week's BoC policy announcement rose to 80% from 77% before the survey's release, swaps market data showed . Last month, the BoC became the first G7 central bank to begin easing policy, lowering its benchmark rate by 25 basis points to 4.75%. Canada's consumer price index report for June, due on Tuesday, is expected to show inflation slowing to an annual rate of 2.8% after a surprise uptick to 2.9% in May. The U.S. dollar (.DXY) New Tab, opens new tab rose on Monday against a basket of major currencies as investors bet that an assassination attempt on former President Donald Trump has boosted his reelection chances. Trump has vowed to increase tariffs on Chinese imports, potentially unleashing a new trade war. Canada's economy is particularly dependent on trade. Canadian bond yields fell across the curve. The 2-year was down 5.1 basis points at 3.797%, after earlier touching its lowest since Jan. 12 at 3.763%. Sign up here. https://www.reuters.com/markets/currencies/c-hits-12-day-low-businesses-see-price-growth-easing-2024-07-15/

2024-07-15 17:11

July 15 (Reuters) - Apple's (AAPL.O) New Tab, opens new tab shares rose 2.5% to a record high on Monday after Morgan Stanley raised its price target on the iPhone maker's shares and designated the stock as a "top pick," citing the company's AI efforts as a boost to device sales. In what was seen as a move to catch up with Alphabet's (GOOGL.O) New Tab, opens new tab Google and Microsoft-backed (MSFT.O) New Tab, opens new tab OpenAI, the iPad maker last month unveiled Apple Intelligence, luring customers to upgrade their devices to be able to use the new technology. Apple's shares, which have jumped nearly 20% this year, rose to $236.30, giving the company a market value of $3.62 trillion, the highest in the world. "Apple Intelligence is a clear catalyst to boost iPhone and iPad shipments," Morgan Stanley analysts said. The new technology is compatible with only 8% of iPhone and iPad devices and Apple has 1.3 billion units of smartphones currently in use by customers, the analysts said, adding that the company could sell nearly 500 million iPhones over the next two years. Morgan Stanley, which previously expected Apple to sell between 230 million and 235 million iPhones annually over the next two years, raised its price target on the company's shares to $273 from $216. The stock has an average rating of "buy" with a median price target of $217, and has outperformed the S&P 500 index (.SPX) New Tab, opens new tab this year, according to LSEG data. Industry analysts expect Samsung (005930.KS) New Tab, opens new tab and Apple to lead the charge in global smartphone market recovery this year given the buzz around GenAI-enabled smartphones. Apple sold 45.2 million smartphones globally in the three months ending June, up from 44.5 million a year earlier, but its market share fell to 15.8% from 16.6% in the same period, according to IDC data. Sign up here. https://www.reuters.com/technology/apple-gains-after-morgan-stanley-calls-stock-top-pick-ai-efforts-2024-07-15/