Category: Economy and Policy

Feb 1 (Reuters) – U.S. drugmaker Merck & Co Inc on Friday reported a 5.4 percent rise in quarterly sales, helped by strong demand for its blockbuster cancer treatment Keytruda.

Sales of Keytruda, the most important drug in Merck’s portfolio, rose 66 percent to $2.15 billion in fourth quarter, compared with analysts’ average estimate of $2.12 billion, according to IBES estimates from Refinitiv.

Revenue rose to $11 billion from $10.43 billion. (Reporting by Manas Mishra in Bengaluru; Editing by Shinjini Ganguli)

LONDON (Reuters) – The European Union’s markets watchdog said it has reached an agreement with counterparts in Britain for supervising credit ratings agencies and transaction reporting bodies if there is a no deal Brexit in two months’ time.

The European Securities and Markets Authority (ESMA) also said it has reached agreement with the Financial Conduct Authority in Britain on sharing information to allow cross-border asset management activities to continue if Britain leaves the bloc with no deal.

(Reuters) – Honeywell International Inc on Friday forecast full-year earnings in a range that was largely above analysts’ estimates, as the company continues to benefit from robust demand for aircraft parts.

The company, which makes everything from aircraft engines to catalysts used in petroleum refining, said it expects 2019 earnings per share between $7.80 and $8.10, compared to an average estimate of $7.88 per share, according to IBES data from Refinitiv.

Honeywell’s fourth-quarter revenue fell 10.3 percent, as it spun off its home and transportation businesses in the fourth quarter of last year.

(Adds analyst comment, updates prices, changes dateline from BEIJING)

By Eric Onstad

LONDON, Feb 1 (Reuters) – Aluminium dropped on Friday on worries about excess supply after the top producer said it would resume some output, while other base metals were weighed down by weak Chinese factory data.

China Hongqiao Group, the world’s top aluminium smelter, said it would gradually restart production after the expiration of some government-mandated output curbs.

“We haven’t seen significant production cuts this year and we’ve been expecting to see additional supply after the expiration of the limited cutbacks,” said Ross Strachan, senior commodities economist at Capital Economics.

“There is also new capacity coming on stream both within China and elsewhere in the world, particularly a very large expansion in Bahrain.”

Benchmark aluminium on the London Metal Exchange was the biggest decliner, slipping 0.9 percent to $1,893.50 a tonne by 1047 GMT.

* CHINA PMI: China’s factory activity shrank by the most in almost three years in January as new orders slumped further and output fell, a private survey showed, reinforcing fears a slowdown in the world’s second-largest economy is deepening.

“Generally we’re confident that there will be significantly slower growth over the next six months. You’ve got the weakest credit growth in China for a decade and that does tend to lead to weak demand, so that’s why we see further downside in almost all the industrial metals,” Strachan said.

* COPPER: Three-month LME copper fell 0.7 percent to $6,125 a tonne, having hit a seven-week high in the previous session. The metal, widely used in manufacturing and construction, is heading for a weekly rise of about 1 percent.

* COPPER: Top copper miner Codelco said it had struck a contract deal with the union of supervisors at its Gabriela Mistral mine in northern Chile, averting the threat of a strike.

* TRADE TALKS: U.S. President Donald Trump said he would meet China’s Xi Jinping soon to try to seal a comprehensive trade deal, citing substantial progress.

* ZINC/NICKEL: Steel-linked zinc and nickel were the only LME metals in positive territory, taking heart after prices of steel-making raw materials in China climbed to multi-month peaks on Friday, buoyed by supply disruption issues.

* LME zinc, mainly used to galvanise steel, rose 0.1 percent to $2,720.50 a tonne, while nickel, largely used for making stainless steel, added 0.2 percent to $12,505 a tonne.

* For the top stories in metals and other news, click or (Additional reporting by Muyu Xu and Tom Daly in Beijing; Editing by Dale Hudson)

Feb 1 (Reuters) – Cigna Corp reported a 34.5 percent rise in quarterly revenue, helped by higher enrollment in the first quarter since it closed its acquisition of pharmacy benefits manager Express Scripts.

Cigna’s net income fell to $144 million, or 55 cents per share, in the fourth quarter ended Dec. 31, from $266 million, or $1.07 per share, a year earlier.

The health insurer’s total revenue rose to $14.30 billion from $10.63 billion. (Reporting by Tamara Mathias and Saumya Sibi Joseph in Bengaluru; Editing by Maju Samuel)

NEW YORK/ATLANTA (Reuters) – It was Week 5 of the National Football League season and Pittsburgh Steelers receiver JuJu Smith-Schuster was lying on his back in the end zone after scoring a touchdown.

Running back James Conner immediately ducked down appearing to tend to his prone teammate. From there, Smith-Schuster pantomimed giving birth to a football, with Conner serving as midwife, resting a tender hand on the receiver after handing him his “baby.”

The scene would have been virtually unthinkable just a few years ago, before the league relaxed its touchdown celebration restrictions.

Elaborately choreographed post-touchdown dances and group skits are now the norm, delighting NFL fans and lighting up social media.

“It’s kind of neat to see all 11 guys on offense – or a bunch of them – get together and create stuff,” said former Dallas Cowboys quarterback Tony Romo, who retired shortly before the rule changes.

“I was a little disappointed because I’m a fantastic dancer,” joked Romo, who will be in the broadcast booth for Sunday’s Super Bowl LIII between the New England Patriots and Los Angeles Rams in Atlanta.

Reggie Wayne, who played 14 seasons with the Indianapolis Colts and is in Atlanta for the big game, said at first he was “totally against it,” but got on board this season.

“It’s a new wave,” said Wayne, a member of the Super Bowl XLI champions. “As the year went on, it got exciting.”

Hall of Fame wide receiver Michael Irvin, who won three Super Bowls with the Dallas Cowboys, missed out on the creative celebrations.

“I like to have fun,” said Irvin. “I would have probably choreographed some things with some players.”

While certainly not to everyone’s liking, fans over the season flocked to Twitter to exchange gifs and video clips of their favorite end zone moves.

“I love how excited football players seem when they do their touchdown celebrations,” tweeted Jessica (@jaymytro).

“Can I just choreograph NFL touchdown celebrations for a living??!?!?” wrote another Twitter user, Spookay (@kayscore).

The NFL, referred to derisively as the “No Fun League” when it clamped down on end zone celebrations, has now embraced the trend. It tweeted some of the best celebrations and is hosting a “Touchdown Celebration of the Year” contest on its site ahead of the championship game.

But the relaxed rules do not mean anything goes, with players navigating what can be a confusing new standard. Use of some props and actions seen as taunting the opposition are still forbidden.

The league fined New Orleans Saints receiver Michael Thomas $30,000 for retrieving a cellphone he had hidden under a goal post for his celebration of a 72-yard touchdown catch on Nov. 4.

Days later, when Kansas City Chiefs receiver Tyreek Hill leapt into the stands and commandeered a CBS camera to celebrate a touchdown, he reportedly received no fine – a decision that baffled some fans.

“What!?! M Thomas needs his money back,” wrote Twitter user James Cooper Ware (@jcware).

(Repeats Jan 31 story for wider distribution; no changes to text)

By David Shepardson

WASHINGTON, Jan 31 (Reuters) – A federal appeals court will hear arguments on Friday over whether the Trump administration acted legally when it repealed landmark net neutrality rules governing internet providers in December 2017.

The panel, which has set aside 2-1/2 hours to hear the case, is made up of Judges Robert Wilkins and Patricia Millett, two appointees of Democratic former President Barack Obama, and Stephen Williams, an appointee of Republican Ronald Reagan.

Separately, a U.S. House panel said Thursday it would hold a hearing on Feb. 7 on the Federal Communications Commission’s decision to repeal the 2015 Obama administration’s net neutrality rules.

In May, the U.S. Senate voted 52 to 47 to reverse the FCC’s decision to repeal the net neutrality rules, but the House never took up the issue.

The Republican-led FCC voted 3-2 along party lines to reverse the net neutrality rules, which barred internet service providers from blocking or throttling traffic, or offering paid fast lanes, also known as paid prioritization. The FCC said providers must disclose any changes in users’ internet access as it repealed what it termed “unnecessary, heavy-handed regulations.”

The FCC repeal was a win for providers like Comcast Corp <CMCSA.O), AT&T Inc and Verizon Communications Inc, but was opposed by internet companies like Facebook Inc, Amazon.com Inc and Alphabet Inc.

A group of 22 state attorneys general and the District of Columbia have asked the U.S. Court of Appeals for the District of Columbia to reinstate the Obama-era internet rules and to block the FCC’s effort to pre-empt states from imposing their own rules guaranteeing an open internet.

They argue the FCC disregarded evidence that internet providers will engage “in abusive practices that harm consumers and undermine public safety” and instead unreasonably rely “on a patchwork of unenforceable voluntary commitments (and) amorphous market pressures.”

Matthew Berry, the FCC’s chief of staff, said he expects the judiciary “will uphold the FCC’s decision to return to that regulatory framework under which the internet flourished prior to 2015 and is continuing to thrive today.”

Several internet companies are also part of the legal challenge, including Mozilla Corp, Vimeo Inc and Etsy Inc (ETSY.O), as well as numerous media and technology advocacy groups and major cities, including New York and San Francisco.

Major providers have not made any changes in how Americans access the internet since the repeal.

In October, California agreed not to enforce its own state net neutrality law until the appeals court’s decision on the 2017 repeal, and any potential review by the U.S. Supreme Court. (Reporting by David Shepardson Editing by Frances Kerry)

Feb 1 (Reuters) – The following are the top stories from selected Canadian newspapers. Reuters has not verified these stories and does not vouch for their accuracy.

THE GLOBE AND MAIL

** Canada’s top court has ruled that companies can’t walk away from their obligations to clean up oil wells. The court said Alberta’s rules compelling oil and gas companies to remediate spent wells are in the public interest and do not conflict with banks’ rights to collect on debts in bankruptcy cases. (tgam.ca/2CVVr3f)

** The Waterloo, Ontario-based software company Open Text Corp announced on Thursday that it would buy Colorado legal-tech company Catalyst Repository Systems Inc in a deal worth $75 million in cash. (tgam.ca/2D18vUS)

** Canada’s largest cryptocurrency exchange, QuadrigaCX says it has applied for creditor protection as it seeks to address “significant financial issues” that have prevented it from being able to serve its customers. (tgam.ca/2CYZ5cB)

NATIONAL POST

** Unifor Canada is standing behind striking workers in the Mexican border city Matamoros, where tens of thousands of auto parts and plastics plant employees walked off the job last week in an action that industry groups say is costing $50 million per day. (bit.ly/2CUrK2o) (Compiled by Bengaluru newsroom)

SINGAPORE, Feb 1 (Reuters) – Anadarko Petroleum Corp said on Friday a long-term agreement had been signed with the trading division of China’s state-owned offshore oil and gas producer CNOOC Ltd to supply liquefied natural gas (LNG) from Mozambique.

The deal will bring it one step closer to making a final investment decision for its East African LNG project, with the decision expected in the first half of this year.

Mozambique LNG1 Company, the jointly-owned sales entity of the Mozambique Area 1 co-venturers, had signed a sales and Purchase Agreement (SPA) with CNOOC’s gas and power Singapore Trading and Marketing unit, Anadarko said.

The SPA is for 1.5 million tonnes per annum (mtpa) for a period of 13 years.

“This deal gives China’s largest LNG importer access to Mozambique LNG’s world-class gas resources, which are strategically located off the East Coast of Africa, and will provide China with a clean source of energy for years to come,” said Mitch Ingram, executive vice president of Anadarko’s International, Deepwater and Exploration division.

The agreement demonstrates the progress the company is making towards its goal of taking a final investment decision in the first half of this year, he said, adding that the company is expected to announce further SPAs in the near future.

The Anadarko-operated Mozambique LNG project will be Mozambique’s first onshore LNG development, initially consisting of two LNG trains with total capacity of 12.88 mtpa to support the development of the Golfinho/Atum fields located entirely within offshore Area 1.

Anadarko Moçambique Área 1, Lda, a wholly owned subsidiary of Anadarko Petroleum Corporation, operates Offshore Area 1 with a 26.5 percent interest.

Other stakeholders include ENH Robuma Area Um, Mitsui E&P Mozambique Area1, ONGC Videsh, Beas Rovuma Energy Mozambique Ltd, BPRL Ventures Mozambique, and PTTEP Mozambique Area 1 Ltd. (Reporting by Jessica Jaganathan; editing by David Evans)

TOKYO, Feb 1 (Reuters) – Mitsui & Co on Friday cut full-year profit forecast by 2 percent due to the absence of a dividend from Vale, but the Japanese trading house does not plan to change its holding in the Brazilian miner, a company executive said.

With 110 people confirmed dead and another 238 missing, according to firefighters’ count on Thursday evening, the collapse of tailings dam, which belongs to top iron ore miner Vale in the town of Brumadinho may be Brazil’s deadliest-ever mine disaster.

Mitsui currently holds a 5.59 percent stake in Vale.

“We will ask Vale as a board member to take appropriate measures,” Chief Financial Officer Takakazu Uchida told a news conference on Friday.

However, the trading house has no plans to change its holding in Vale, he said, adding, “Vale is an important strategic partner”.

Mitsui cuts its net profit estimate to 440 billion yen ($4.04 billion) for the year ending March 31, 2019, from 450 billion yen as it will miss a dividend of 10 billion yen from Vale, Uchida said.

The revised forecast was below 457.9 billion yen median of 11 analysts’ estimate, compiled by Refinitiv, but the company expects to beat a record profit of 434.5 billion yen hit in the year ended March 2012.

Uchida declined to comment on the outlook for iron ore prices, saying it is too early to determine the impact from the Vale dam disaster.

However, iron ore prices hit their highest level in 22 months after a seven-day rally on Friday, buoyed by supply disruption issues. The market is forecast to move into a deficit this year in the wake of a move by Vale to cut output following a catastrophic dam failure in Brazil last week.

Asked about a U.S. Anadarko-led offshore liquefied natural gas project in Mozambique, Uchida said Mitsui still expects a final investment decision (FID) in first half of 2019.

He also confirmed that Mitsui was in talks with Russia’s Novatek over Arctic LNG 2 project, but declined to comment on any further details.

($1 = 108.9000 yen)