2024-05-16 20:10

May 16 (Reuters) - A positive forecast from retail bellwether Walmart (WMT.N) New Tab, opens new tab on Thursday signaled a resilient U.S. shopper, in line with earlier remarks by one of its key suppliers and one of its retail rivals. American shoppers are opening their wallets, spending money on bargain-priced goods in stores and online, with many people turning to Walmart's delivery service for convenience, Walmart executives said on Thursday. The nation's largest retailer raised its full-year outlook and reported better-than-expected first quarter results. Its shares surged by nearly 7%, driving shares of rivals such as Target (TGT.N) New Tab, opens new tab, Dollar General (DG.N) New Tab, opens new tab and Dollar Tree (DLTR.O) New Tab, opens new tab higher. Procter & Gamble (PG.N) New Tab, opens new tab, one of Walmart's biggest and most important suppliers, recently also raised its full year profit forecast. On April 19, executives at P&G, which makes Tide detergent and Dawn dish soap, disclosed that its volumes grew around 3% in the U.S., its top market. Earlier this week, rival Home Depot (HD.N) New Tab, opens new tab maintained its annual forecast despite reporting a bigger-than-expected drop in sales. Analysts said this could indicate that Home Depot expects an improving spending environment in the second half of the year. To be sure, several retailers and food companies have noted what appears to be worsening or ongoing financial strain on low-income Americans making less than $35,000 a year. Walmart, the leading grocery retailer in the United States, accepts food stamps and seeks to keep merchandise prices low in order to draw bargain seekers of all income levels. It offered discounts on 45% more food and grocery products in April than during the year-earlier period, executives said on Thursday. But higher-income households earning more than $100,000 annually also opened their wallets. They were instrumental in driving Walmart's online sales of general merchandise, its executives disclosed on Thursday. U.S. government data on Wednesday showed that retail sales were unexpectedly flat in April as higher gasoline prices and rents pulled spending away from other goods. Walmart executives on Thursday said the price gaps Walmart maintains with competitors helped increase visits to its stores and website in the first quarter even though the average amount spent per transaction remained flat compared to a year ago. "The fight is for the middle and upper (income) consumer that's still able to spend," said Don Nesbitt, senior portfolio manager at F/m Investments, which owns Walmart shares. Sign up here. https://www.reuters.com/business/retail-consumer/walmarts-strong-forecast-signals-resilient-consumer-2024-05-16/

2024-05-16 20:00

May 16 (Reuters) - Fossil fuel groups have sued the U.S. Bureau of Land Management seeking to block a rule that will raise fees for oil and gas development on federal lands as a part of the U.S. government's broader effort to boost returns and address environmental harms stemming from drilling on public lands. The Western Energy Alliance, a trade group representing oil and gas companies that drill on federal lands in the western U.S., and several other industry groups sued the agency, which comes under the Interior Department, in Wyoming federal court on Wednesday. They argued the rule will deter future oil and gas development, violating the government's obligation to promote such development. The bureau declined to comment. Under the new policy finalized last month, oil and gas companies will pay higher bonds to help ensure old oil and gas wells are plugged and restored, as well as increased lease rents, minimum auction bids and royalty rates for the fuels they extract. The rule, the first comprehensive update to federal onshore oil and gas leasing regulations in decades, will also limit drilling in sensitive wildlife and cultural areas. Royalty rates will jump to 16.67% from 12.5%, while minimum lease bonds will increase to $150,000 from $10,000. The groups said on Wednesday the changes would ultimately deter future development, effectively close available land to new leasing, and disproportionately impact small companies. These violate government obligations to promote oil and gas development under the Federal Land Policy and Management Act, the Mineral Leasing Act and other laws, they said. They asked the court to vacate the rule, which they called "procedurally deficient, arbitrary and capricious, and contrary to law." For years environmental and taxpayers groups have claimed that U.S. oil and gas development policy acted as a de facto subsidy for the fossil fuel industry while providing relatively little financial benefit for the public and causing significant environmental damage. Many of the changes formalized provisions of U.S. President Joe Biden's landmark climate change law, the 2022 Inflation Reduction Act. About 10% of the nation's oil and gas comes from drilling on federally owned land. The Interior Department said last month that the rule would discourage speculators and irresponsible actors, while increasing returns and helping to protect the environment. Sign up here. https://www.reuters.com/legal/oil-gas-groups-sue-block-us-rule-raising-drilling-fees-public-lands-2024-05-16/

2024-05-16 19:50

WASHINGTON, May 16 (Reuters) - The United States blocked imports from 26 Chinese cotton traders or warehouse facilities on Thursday as part of its effort to eliminate goods made with the forced labor of Uyghur minorities from the U.S. supply chain. The companies are the latest additions to the Uyghur Forced Labor Prevention Act Entity List that restricts the import of goods tied to what the U.S. government has characterized as an ongoing genocide of minorities in China's Xinjiang region. U.S. officials believe Chinese authorities have established labor camps for Uyghurs and other Muslim minority groups in China's western Xinjiang region. Beijing denies any abuses. Many of the cotton companies listed are based outside of Xinjiang but source their cotton from the region, the U.S. Department of Homeland Security said in a statement. The designations help "responsible companies conduct due diligence so that, together, we can keep the products of forced labor out of our country," Alejandro Mayorkas, Secretary of Homeland Security, said in the statement. A spokesperson for the Chinese embassy in Washington criticized the move. "The so-called 'Uyghur Forced Labor Prevention Act' is just an instrument of a few U.S. politicians to disrupt stability in Xinjiang and contain China's development," the spokesperson said. Washington has restricted imports from 65 entities since the Uyghur Forced Labor Prevention Act Entity List law was passed in 2021, according to the department. "We enthusiastically endorse DHS's action today to nearly double the Uyghur Forced Labor Prevention Act's 'Entity List' - while recognizing that the current list remains only a fraction of the businesses complicit in forced labor," Rep. Chris Smith and Sen. Jeff Merkley, chairs of the bipartisan Congressional-Executive Commission on China, said in a statement. The lawmakers want DHS to blacklist Chinese companies in the polysilicon, aluminum, PVC and rayon industries and any company in other parts of Asia making goods for the U.S. market with inputs sourced from Xinjiang. Sign up here. https://www.reuters.com/markets/us-bars-imports-26-cotton-traders-warehouses-over-uyghur-forced-labor-2024-05-16/

2024-05-16 19:28

May 16 (Reuters) - Waste management firm WM (WM.N) New Tab, opens new tab is exploring a sale of its renewable natural gas business that could be worth about $3 billion, according to people familiar with the matter. The Houston-based company is working with JPMorgan Chase & Co (JPM.N) New Tab, opens new tab to gauge interest from potential buyers, which could include energy companies and private equity firms, the sources said, requesting anonymity as the discussions are confidential. WM is planning to offload the rights to develop RNG operations on 115 landfills that it owns, the sources said, adding the company would retain ownership of the landfills. RNG is methane captured from biological waste and converted into electricity or fuel. If the deal talks conclude successfully, it would mark one of the biggest-ever asset sales in the nascent U.S. RNG industry. The largest sale was BP's (BP.L) New Tab, opens new tab $4.1 billion takeover of Archaea Energy in 2022. "We are always looking for ways to maximize the value of our renewable energy business for our shareholders, which may range from organic growth initiatives to partnerships or monetization through a sale," WM said in a statement. JPMorgan declined to comment. WM had planned to invest about $1.2 billion between 2022 and 2025 to grow the RNG business. The firm now wants to spend that capital in other areas, the sources said. The company had forecast the RNG unit would contribute more than $500 million of adjusted earnings before interest, tax, depreciation and amortization (EBITDA) by 2026. It currently generates about $150 million of EBITDA, according to the sources. WM is hoping the unit's valuation would be comparable to, or exceed, the earnings multiple at which Morrow Renewables sold RNG operations at landfills to Enbridge (ENB.TO) New Tab, opens new tab in late 2023, the sources added. Should it meet that valuation, WM will get in the ballpark of $3 billion, the sources said. RNG's environmental benefits include the reduction of natural gas usage and capturing climate-warming emissions that would otherwise escape into the atmosphere. However, it is more expensive than natural gas, which is also experiencing a period of prolonged low prices. WM, whose shares have risen by about 25% over the past year, is one of the largest U.S. trash and recycling collection companies. The firm's fleet includes more than 12,000 trucks running on compressed natural gas and it recently signed a sustainability partnership with Major League Baseball. Sign up here. https://www.reuters.com/markets/deals/waste-manager-wm-explores-3-billion-sale-renewable-natural-gas-unit-sources-say-2024-05-16/

2024-05-16 19:26

Canadian dollar weakens 0.1% against the greenback Trades in a range of 1.3591 to 1.3641 Price of U.S. oil settles 0.8% higher Canadian yield curve inverts further TORONTO, May 16 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Thursday as the recent rally lost some momentum and investors assessed economic for signs the U.S. economy is slowing down. The loonie was trading 0.1% lower at 1.3615 to the U.S. dollar, or 73.45 U.S. cents, after trading in a range of 1.3591 to 1.3641. It follows six straight days of gains for the currency. On Wednesday, it touched a five-week high at 1.3589 as U.S. inflation data kept the door open to interest rate cuts this year. "The CAD is digesting yesterday's gains against the USD -classic backing and filling before the next move," said Tony Valente, senior FX dealer at AscendantFX. "Yesterday's U.S. inflation was on point and retail sales were very soft. This was followed by more soft U.S. data today reinforcing that an economic slowdown is emerging." The number of Americans filing new claims for unemployment benefits fell last week, unwinding nearly half of the jump at the start of the month, indicating that labor market conditions remain fairly tight even as job growth is cooling. "I would expect the USD to resume its fall against the CAD after this short respite," Valente said. Canada's monthly inflation report, due next Tuesday, is seen as a major input into the Bank of Canada's decision in June whether to begin its own interest rate cutting campaign. The price of oil, one of Canada's major exports, settled 0.8% higher at $79.23 a barrel, while Canadian government bond yields were mixed across a more deeply inverted curve. The 2-year rose 4.4 basis points to 4.219%, while the 10-year was little changed at 3.574%. Sign up here. https://www.reuters.com/markets/currencies/c-winning-streak-ends-market-digests-recent-gains-2024-05-16/

2024-05-16 18:21

GRUENHEIDE, Germany, May 16 (Reuters) - Tesla (TSLA.O) New Tab, opens new tab got the go-ahead for an expansion of its German factory in Gruenheide near Berlin from the local council on Thursday despite protests against the U.S. electric vehicle maker's plans. The green light from the Gruenheide council is just the first in a series of hurdles Tesla needs to clear before being able to start its expansion to add logistical spaces including a train station. The expansion must also be approved by local environmental authorities. The expansion is part of the U.S. EV maker's plans to double the site's capacity to 100 gigawatt hours of battery production and 1 million cars per year, setting it up to dominate Europe's EV market. Environmentalists and local groups fear expanding the plant would endanger the region's water supply, as it is located in a drinking water protection area. Protesters against the expansion clashed with police earlier this month as some of them attempted to storm the facility. A suspected arson attack nearby left the plant without power in March. In front of the hall where the Gruenheide council members met on Thursday under police protection, demonstrators held up posters reading “People over Profit” or “Turn off the tap on Tesla”. Tesla already had to revise its expansion plans after Gruenheide citizens voted against them in February - and is now set to cut down just 47 hectares of forest, half the originally planned area. Sign up here. https://www.reuters.com/business/autos-transportation/tesla-gets-local-council-go-ahead-german-factory-expansion-2024-05-16/