2024-05-09 15:56

WASHINGTON, May 9 (Reuters) - A U.S. auto safety agency said on Thursday it has "significant safety concerns" over Ford Motor's (F.N) New Tab, opens new tab recall of more than 42,000 SUVs over concerns fuel leaks could lead to an engine fire. The National Highway Traffic Safety Administration (NHTSA) said last month it was investigating the adequacy and safety consequences of Ford's proposed recall remedy for 2022-2023 model year Bronco Sport and 2022 Ford Escape SUVs with 1.5L engines. The No. 2 U.S. automaker said a fuel injector may crack and leak fuel, which could cause an underhood fire. Ford has proposed an engine control software update and installation of a drain. It is not proposing to replace the fuel injectors that could crack. In a letter to Ford made public on Thursday, NHTSA said Ford's plan "does not address the root cause of the issue and does not proactively call for the replacement of defective fuel injectors prior to their failure," adding that the agency has "identified significant safety concerns." NHTSA is asking Ford to answer extensive questions about the recall by June 21, including how it settled on the remedy. Ford reiterated on Friday that it is working with NHTSA to support the agency's investigation. Ford said last month is aware of five underhood fires on 1.5L Escape and Bronco Sport vehicles in the new recall population, but that it had no reports of accidents or injuries tied to the issue. The software update will detect a pressure drop in the fuel rail, providing a “seek service” message to the driver and disabling the high-pressure fuel pump, reducing engine power output and lowering temperatures of possible ignition sources. In 2022, Ford recalled nearly 522,000 2020-2023 Ford Escape and 2021-2023 Ford Bronco Sport for the same issue with the same remedy, NHTSA said. Ford told NHTSA in late 2022 it had 54 reports alleging underhood fires in 2020-2022 Bronco Sport and Escape vehicles, equipped with the 1.5L engine in North America, along with reports of four injuries in two incidents. Sign up here. https://www.reuters.com/business/autos-transportation/us-auto-safety-agency-raises-concerns-ford-suv-recall-2024-05-09/

2024-05-09 15:55

JOHANNESBURG, May 9 (Reuters) - South Africa's rand strengthened on Thursday as the dollar weakened after recent U.S. economic data signalled a softening U.S. labour market. At 1536 GMT, the rand traded at 18.49 against the dollar , up 0.5% from its previous close. The dollar index was down about 0.2% against a basket of currencies after U.S. data showed claims for unemployment benefits rose last week to the highest level in more than eight months. U.S. market participants have looked to a softening labour market as a sign that consumers will begin to slow spending and in turn help cool inflation. The rand, like most emerging market currencies, takes direction from U.S. economic data points in addition to local events. Statistics South Africa data earlier in the day showed manufacturing output fell 6.4% year-on-year in March, after rising by a revised 4.0% in February. On the stock market, the Top-40 (.JTOPI) New Tab, opens new tab index closed 0.56% higher. South Africa's benchmark 2030 government bond was weaker, with the yield up 1.5 basis points at 10.530%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-firms-dollar-slips-claims-data-2024-05-09/

2024-05-09 15:18

May 9(Reuters) - Warner Bros Discovery posted a quarterly loss that was larger than expected as advertising sales slumped at its cable TV unit and the studio segment contended with the fallout of last year's Hollywood strikes and poor demand for a "Suicide Squad" game. The results amplified the media companies' struggles with subdued advertising in the U.S. and certain international markets as businesses responded to the possibility of higher-for-longer interest rates with a tight leash on costs. Ad revenue at the company's (WBD.O) New Tab, opens new tab networks segment fell 11% in the first quarter. On Tuesday, rival Disney (DIS.N) New Tab, opens new tab also reported a drop in its traditional TV business. The streaming unit remained a bright spot for Warner Bros Discovery, adding 2 million subscribers and reporting a 72% jump in adjusted core profit to $86 million. Investors have pushed for a focus on profitability and away from boosting subscription, as Netflix consolidates its leading position in the streaming wars. Warner Bros Discovery on Wednesday joined hands with Disney to offer a bundle of the Disney+, Hulu and Max streaming services in the U.S., starting this summer. The companies, along with Fox Corp, had unveiled a sports-streaming venture earlier this year. "We are effectively seeing the return of the big bundle, delivered over the internet," said Paolo Pescatore, analyst at PP Foresight. "HOPEFUL" ON NBA CEO David Zaslav said the company "was hopeful" it would reach an agreement with the NBA to keep the league on Max and TNT, which has held those rights for almost four decades. That helped shares trade flat after tumbling premarket as NBA rights are considered central to the company's efforts to drive growth in its streaming business and retain cable customers. Warner Bros Discovery "will become a weak third leg" in the new sports-streaming venture if its NBA deal is not renewed, said Ross Benes, senior analyst at Emarketer. The company's studio revenue was hit by the underperformance of the game "Suicide Squad: Kill the Justice League", compared with 2023's top-seller "Hogwarts Legacy". Revenue at the business fell 12%, despite "Dune: Part Two", which is 2024's highest grossing movie to date with a worldwide box-office collection of over $700 million. The company continues to face challenges posed by the twin Hollywood strikes last year, which led to production delays and fewer episodes during the first three months of the year. Revenue of $9.96 billion missed estimates of $10.23 billion, according to LSEG data. Loss of 40 cents per share was larger than expectations for a 24-cent loss. Sign up here. https://www.reuters.com/business/media-telecom/warner-bros-discovery-misses-estimates-quarterly-revenue-2024-05-09/

2024-05-09 15:04

ABUJA, May 9 (Reuters) - The International Monetary Fund on Thursday maintained its growth forecast of 3.3% for Nigeria's economy for 2024, up from 2.9% last year, citing a pick up in services and trade sectors. The IMF added that growth outlook was still challenging in Africa's most populous nation and top oil producer, with food price inflation 40% in March, raising food security concern. "If Nigeria grows at 3.3% that is just above the population dynamics, which is a big challenge," IMF mission chief for Nigeria, Axel Schimmelpfenning, told journalists. Since taking office about a year ago, President Bola Tinubu has embarked on sweeping reforms, including slashing costly petrol and electricity subsidies and devaluing the naira currency twice within a year to narrow the gap between the official and parallel market exchange rates. The Fund forecast that fuel subsidies could cost up to 3% of GDP this year as the increases in pump prices have not kept up with their dollar cost, Schimmelpfennig said, adding that officials remain committed to phasing that out in another one or two years. "The reforms are focused on how to raise that growth so that Nigerians can see real impacts on their living standards," Schimmelpfenning said. Global ratings agencies have reviewed Nigeria's economic outlook upwards due to the impact of reforms, with Fitch the latest to revise Nigeria's outlook to positive from stable on May 3. "We think a lot has happened. We also have to recognise that the problems built up over many years were quiet severe. We can't expect that everything is going to be resolved overnight," he added. Schimmelpfenning said scaling up a cash transfer programme and boosting government revenues so that the country has more resources to provide services to its citizens is a key priority. On monetary policy, the IMF welcomed the Central Bank of Nigeria's (CBN) recent interest rate hikes to curb galloping inflation, calling for a data-driven approach to further rate tightening. The IMF urged the CBN to build up its foreign exchange reserves and recommended a transparent and balanced framework for forex interventions aimed solely at smoothing out excessive short-term volatility. Sign up here. https://www.reuters.com/world/africa/imf-maintains-nigeria-growth-forecast-33-2024-2024-05-09/

2024-05-09 13:59

Q3 gross margin growth of 190 bps drives EPS beat Expects Q4 EPS of 85 cents vs estimates of $1.01 Company's shares down 2% in early trading May 9 (Reuters) - Coach handbag maker Tapestry (TPR.N) New Tab, opens new tab cut its annual sales forecast and missed third-quarter revenue estimates on Thursday, signaling weak demand for its tote bags and accessories in North America and China. Shares of the Kate Spade owner fell 2% as the company also forecast fourth-quarter profit below expectations. Reduced discretionary spending in North America owing to rising prices and a fragile post-pandemic recovery in China have led to weak demand for Tapestry's leather handbags and footwear brands. "Consumer confidence is low in North America, likely impacted by sticky inflation. And so we are seeing an overall more cautious consumer," CEO Joanne Crevoiserat said. Revenue in North America, which accounted for 61% of 2023 revenue, fell 3% in the quarter, while sales in Greater China dipped 2%. "It will take time for sales in mainland China to recover - but brands may be able to benefit from rebounding demand for international travel," said Rachel Wolff, an analyst with Emarketer. Still, Tapestry beat profit expectations on a 190 basis point margin growth from selling products at full price, lower freight costs and tighter control on expenses. Tapestry's $8.5 billion buyout of Michael Kors owner Capri (CPRI.N) New Tab, opens new tab is being sued by the antitrust regulator, saying it would eliminate "direct head-to-head competition" between the flagship brands. Tapestry said it was "confident in the merits and pro-competitive, pro-consumer nature" of the transaction and was working to close the deal in calendar year 2024. Its third-quarter net sales came in at $1.48 billion, compared to expectations of $1.50 billion. It earned 82 cents per share on an adjusted basis, above estimates of 67 cents. Tapestry forecast 85 cents per share profit in the fourth quarter, compared with estimates of $1.01. It expects fiscal 2024 revenue of more than $6.6 billion, down from prior expectations of about $6.7 billion even as it maintained profit forecast in the range of $4.20 to $4.25 per share. Sign up here. https://www.reuters.com/business/retail-consumer/coach-parent-tapestry-misses-quarterly-revenue-expectations-2024-05-09/

2024-05-09 12:59

May 9 (Reuters) - Republican attorneys general from 27 U.S. states and industry trade groups sued the Environmental Protection Agency on Thursday, seeking to block a landmark rule requiring sweeping reductions in carbon emissions from existing coal-fired power plants and new natural gas plants. The rule, finalized by President Joe Biden's administration last month as part of an effort to combat climate change, was challenged in multiple lawsuits filed in the U.S. Court of Appeals for the District of Columbia Circuit, including one by 25 states spearheaded by West Virginia and Indiana and another by Ohio and Kansas. Electric utility, mining and coal industry trade groups also filed lawsuits. The rule mandates that many new gas and existing coal plants reduce their greenhouse gas emissions by 90% by 2032. The requirements are expected to force the U.S. power industry to install billions of dollars' worth of emissions control technologies or shut down the dirtiest facilities running on coal. The regulations are part of Biden’s broader climate agenda and target a sector that is responsible for nearly a quarter of the country's greenhouse gas pollution. The EPA declined to comment. West Virginia Attorney General Patrick Morrisey said in a statement that the regulations are based on emissions reduction technologies that have not been meaningfully deployed in the real world, exceed the EPA's authority under the Clean Air Act, and would radically transform the nation’s energy grid without explicit congressional permission to do so. He said the rule "is setting up the plants to fail and therefore shutter, altering the nation’s already stretched grid." National Rural Electric Cooperative Association CEO Jim Matheson, whose organization represents nearly 900 local electric cooperatives and filed a lawsuit Thursday, said in a statement that the rule "is unlawful, unreasonable and unachievable." The lawsuit came a day after 23 Republican attorneys general from states including West Virginia, North Dakota and Texas challenged a different EPA rule that limits the amount of mercury and other hazardous pollutants that can be emitted from power plants. Legal experts say the EPA's assertion that the emissions reductions are feasible if power plants install carbon capture and sequestration (CCS) technologies - which capture emissions before they are released into the atmosphere - is likely to be a major issue in the litigation. The Clean Air Act requires the EPA to set standards that are attainable using technologies that are “adequately demonstrated.” But while the EPA said it believes CCS is viable and cost-effective, opponents say the technology is not ready to be deployed at power plants across the country. CCS has been installed at dozens of facilities that process various fuels, but just four coal-fired power globally have CCS installed, according to the Global CCS Institute. “They’ve taken a pretty aggressive view of what it means to have something be adequately demonstrated, and I just think the Supreme Court will look at this and say EPA is out over its skis,” said Jeff Holmstead, a lawyer at the law firm Bracewell and a former EPA official during the administration of Republican former President George W. Bush. But supporters say billions of dollars in funding in the 2022 Inflation Reduction Act will make CCS cost effective, and the Clean Air Act is designed to force technological advances. “The law was developed to make sure these newer and yet-to-be-deployed technologies are deployed,” said Jay Duffy, a lawyer at the Center for Applied Environmental Law and Policy. Sign up here. https://www.reuters.com/sustainability/climate-energy/25-us-states-challenge-epa-power-plant-emissions-rule-court-2024-05-09/