Economic trends, analysis, and policy discussions that impact businesses and industries in the Southern United States. This section may provide in-depth articles and reports on topics such as regional economic growth, business regulations, tax policies, and the influence of state and federal legislation on local markets. It could also cover issues like labor markets, trade policies, infrastructure developments, and government initiatives designed to stimulate economic activity in the South. Additionally, this section might feature expert opinions, interviews with policymakers, and case studies of how businesses are adapting to changing economic conditions. The goal is to provide valuable insights for business leaders, investors, and policymakers seeking to understand and navigate the economic and policy landscape in the region.
Feb 6 (Reuters) – Arconic Inc said on Wednesday Chairman John Plant will also serve as the chief executive officer of the U.S. aluminum products maker, replacing Chip Blankenship, who assumed the role early last year.
The company said Elmer Doty, a current director, will serve as chief operating officer. (Reporting by Ankit Ajmera in Bengaluru; Editing by Shinjini Ganguli)
A logo of Azul Brazilian Airlines is seen on a plane at International Airport in Guarulhos, Brazil July 11, 2018. REUTERS/Leonardo Benassatto
SAO PAULO (Reuters) – Brazilian airline Azul SA will replace more of its aging E-Jet fleet, made by local manufacturer Embraer SA, with larger planes from Airbus SE this year, the carrier said in a securities filing on Wednesday.
Azul, which launched with an all-Embraer fleet in 2008 and started adding Airbus A320s in 2016, said its new fleet plan will add 12 more Airbus narrowbodies this year and remove 15 Embraer E195s. Azul will also add six of Embraer’s next-generation E2 jets in 2019, four more than previously planned.
Reporting by Ana Mano
TEL AVIV (Reuters) – Pagaya, a U.S.-Israeli firm that uses machine learning and big data to manage institutional money, said on Wednesday it is issuing and overseeing $100 million in actively managed asset-backed securities led by structuring agent Cantor Fitzgerald.
This brings Pagaya’s assets under management to $450 million since its founding in 2016. Its artificial intelligence (AI) analyses data to assess risk in financial instruments, identifies emerging asset classes and seeks to generate a stable return.
Pagaya will use its AI to select and buy individual loans, rather than the traditional method of securitising a pool of previously assembled asset-backed securities.
Pagaya is targeting close to $1 billion in assets under management by year-end, Gal Krubiner, co-founder and CEO of Pagaya, told Reuters.
Customers include Israeli banks Hapoalim and Leumi, Citi, European banks and Israeli insurers.
It has raised $20 million from Viola Ventures, Oak, Thailand’s Siam Commercial Bank and Clal Insurance, among others, and raised $75 million in debt financing from Citi.
Reporting by Tova Cohen
(Repeats with no changes to text. The opinions expressed here are those of the author, a columnist for Reuters.)
By Clyde Russell
CAPE TOWN, Feb 6 (Reuters) – The response to the horrendous dam collapse at a mine owned by Brazil’s Vale has focused on iron ore prices and how a disaster that will likely claim more than 300 lives occurred, and what must be done to make sure this doesn’t happen again.
These are valid concerns, but the risk of focusing on the immediate issues is that the much larger problems of the mining industry are once again glossed over. Namely that miners aren’t trusted and suffer from a serious image problem.
It may seem somewhat trivial to talk about image in the face of such a human tragedy, but mining’s poor image across a range of stakeholders is the major issue for the industry.
If mining has a poor safety and community image, it becomes “uninvestable”, to use the words of a senior global banker, talking at the 121 Mining Investment event in Cape Town this week, held under Chatham House rules.
If investors don’t want to commit funds to the industry because of fear over damage to their own image from poor mining practices, then the industry will be starved of capital.
Lack of capital means it becomes harder and harder to get new mines built or exploration drilling undertaken. There is also the risk of a cascade of negative outcomes for mining.
If major banks and pension funds make it clear they are withdrawing from investing in mining companies, it’s likely share prices will suffer, leading other investors to withdraw funds, even if they don’t have quite the same moral qualms.
It goes further than just losing sources of capital, with mining companies already struggling to attract younger workers.
A common theme at the Investing in African Mining Indaba, a second event in Cape Town this week and one of the biggest such conferences worldwide, was a lament from company executives that members of the millennial generation – roughly in their early 20s to mid-30s – show little interest in mining, preferring more trendy industries, such as technology and digital solutions.
The fact that mining is increasingly turning to digital applications and that mines of the future will bear little resemblance to current operations is not resonating with younger workers, largely because of the industry’s image, rather than its substance.
Mining companies also have a global image problem, with many increasingly nationalistic governments wanting to extract more value from their mineral resources.
Mining companies push back against higher royalties, or other forms of contribution such as underwriting new infrastructure, largely because they boost costs and cut profits.
But by becoming unpopular in countries where they operate, longer term costs may be ultimately higher for mining companies.
Mining runs the risk of suffering what happened to the oil industry, where international majors went from a dominant position to one where state companies produce the bulk of crude.
The mining industry appears to be increasingly aware of its image problem, with speakers at both the 121 Mining and Mining Indaba events referring repeatedly to the concept of their “licence to operate”, a term that includes working with local communities, governments and consumers of their products.
Miners are keen to brand themselves as part of the green energy revolution, since mining provides the metals and energy needed to make the renewable technologies that aim to replace the burning of fossil fuels.
But the problem for miners is convincing an increasingly sceptical public of how necessary their industry is.
Part of this is that the greener part of mining is still struggling to disassociate itself from the dirty part. In other words, lithium, cobalt and copper miners still get lumped alongside coal miners.
Iron ore miners now are at risk of moving into the space occupied by coal, as public distrust and distaste will be ramped up after the tailings dam collapse at Vale’s Corrego do Feijao mine.
The industry needs to do more than just recognise its image problems, it needs chief executives to make presenting and promoting a better picture their top priority, not just something they pay lip service to before handing off to junior, under-resourced public relations teams. (Editing by Tom Hogue)
NEW DELHI, Feb 6 (Reuters) – India has deferred a plan to tax imports of touch panels, three sources said, after smartphone makers such as Samsung Electronics asked the government to delay levying tariffs on such new imported components under a phased plan to boost local manufacturing.
The tariff, which was supposed to kick in from February, has been delayed after considering industry demands, a government official told Reuters. All three sources declined to be named as the matter is private and still awaits final approval.
The tariff is now likely to be levied from April 2020 if the Indian finance ministry accepts the Ministry of Electronics and Information Technology’s (MEITY) proposal on the matter, the two other sources said.
The finance ministry and MEITY did not immediately respond to requests for comment.
Samsung had written to the federal government saying it would not make two of its high-end models in India because of the new tariff.
The India Cellular and Electronics Association (ICEA), which has Apple and contract manufacturers such as Wistron and Foxconn among its members, had also called on the government to reconsider the duties on new components, and allow local manufacturing to develop in a timely manner.
Samsung declined to comment.
Levying tariffs on different mobile phone components in a phased manner is part of Prime Minister Narendra Modi’s drive to make India a manufacturing hub like neighbouring China, and his government is hoping this will spur job growth in the country. (Reporting by Sankalp Phartiyal Editing by Euan Rocha and David Evans)
By Tatiana Bautzer
SAO PAULO, Feb 6 (Reuters) – Eldorado Brasil Celulose SA said on Wednesday that financial information in a bond prospectus is accurate, responding to a shareholder that alleged in letters to the U.S. Securities and Exchange Commission that it contained “material inaccuracies.”
Eldorado said in a statement that the financial information in the bond prospectus is “consistent and correct” and the sale complies with all relevant regulation.
“The company is sorry that one of its shareholders is uncomfortable with the transaction, but is sure the bond sale is important to the company”, Eldorado added. People close to the company said the transaction would proceed with no changes.
The shareholder, CA Investment, a vehicle owned by pulpmaker Paper Excellence, sent letters to the SEC stating that bond investors had received inaccurate information ahead of a planned bond issue by the Brazilian pulpmaker.
According to documents seen by Reuters, law firm Mehigan wrote to the SEC on behalf of CA Investment.
The documents alleged there were “fundamentally material inaccuracies” with respect to Eldorado’s earnings before interest, tax, depreciation and amortization (EBITDA) in the bond offer memorandum. It said the EBITDA “has been materially overstated.”
Eldorado plans to sell $500 million in 2026 bonds and is expected to price the issue on Wednesday.
Paper Excellence confirmed the documents had been filed with the SEC.
Netherlands-based Paper Excellence owns 49.4 percent in Eldorado and is involved in a dispute with the current controlling shareholder, J&F Investimentos SA, over completion of a deal to acquire control of the company. J&F is controlled by Joesley and Wesley Batista, also shareholders in meatpacker JBS SA. (Reporting by Tatiana Bautzer; Editing by Rosalba O’Brien and Jeffrey Benkoe)
Feb 6 (Reuters) – U.S. engine maker Cummins Inc reported a 12 percent rise in fourth-quarter revenue on Wednesday, driven by strong demand for its engines from the heavy-duty truck makers and the construction equipment sector.
Net income attributable to the company was $579 million, or $3.63 per share, in the quarter ended Dec. 31, compared with a net loss of $274 million, or $1.65 per share, for the same period a year earlier.
In the year-ago quarter, the company took a one-time charge of $777 million related to the U.S. tax reform.
Net sales of the company, which competes with Daimler AG , Caterpillar Inc and Ford Motor Co in North America in the engine market, rose 12 percent to $6.13 billion.
Reporting by Rama Venkat in Bengaluru; Editing by James Emmanuel
Feb 6 (Reuters) – Stock futures pointed to a flat opening for Canada’s main stock index on Wednesday, with oil prices dipping on a surprise rise in U.S. crude inventories.
March futures on the S&P/TSX index were down 0.04 percent at 6:55 a.m. ET.
Building permits data for December is due at 8:30 a.m. ET and Ivey’s Purchasing Managers Index data for January is due at 10:00 a.m. ET
The Toronto Stock Exchange S&P/TSX composite index closed up 100.37 points, or 0.64 percent, at 15,702.69 on Tuesday.
Dow Jones Industrial Average e-mini futures were down 0.11 percent at 6:55 a.m. ET, while S&P 500 e-mini futures were down 0.1 percent and Nasdaq 100 e-mini futures were down 0.05 percent.
Canadian cannabis producer Aphria Inc said on Wednesday it had rejected U.S. cannabis retailer Green Growth Brands Inc’s hostile takeover bid, saying the offer significantly undervalued the company.
Canadian pharmaceutical industry lobby groups, in an effort to head off a planned crackdown on prescription drug prices, offered to give up C$8.6 billion ($6.6 billion) in revenue over 10 years, freeze prices or reduce the cost of treating rare diseases, according to interviews and documents seen by Reuters.
Suncor Energy, Canada’s second-largest energy producer, reported a quarterly loss on Tuesday, compared with a profit a year ago, as lower prices for the country’s crude offset gains from higher refinery margins.
Intact Financial: National Bank of Canada ups target price to C$109 from C$106.
Loblaw Companies: National Bank of Canada ups target price to C$67 from C$62.
Smartcentres REIT: RBC cuts rating to outperform from top pick.
COMMODITIES AT 6:55 a.m. ET
Gold futures: $1313.3; -0.24 percent
US crude: $53.17; -0.91 percent
Brent crude: $61.43; -0.89 percent
0830 International trade for Nov: Expected -$54.0 bln; Prior -$55.5 bln
TSX market report
Canadian dollar and bonds report
Reuters global stocks poll for Canada
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$1 = C$1.32 Reporting by Siddharth Athreya V in Bengaluru
ZURICH, Feb 6 (Reuters) – Credit Suisse is hiring senior wealth managers from U.S. rivals JPMorgan and Morgan Stanley as part of a push to grow its business in Latin America as quickly as it grows its Swiss client base.
Switzerland’s second-biggest bank has made five senior appointments in its Geneva and Zurich-based offices to boost business managing money for Latin America’s wealthy, according to an internal memo seen by Reuters.
It plans further hires in coming months, including at local South and Central American offices, a source familiar with the plans said.
“To grow our regional capabilities further we need to not only develop our internal talent… but also attract external talent,” LatAm Head Jorge Fernández Amann told employees in an internal memo.
He added that the bank would have a stronger local presence in Mexico, Chile and Colombia.
Ricardo Castillo will join Credit Suisse as Latin American head of advisory and sales, and also lead the bank’s investment consulting team for Argentina, Chile, Uruguay and Paraguay (ConoSur), according to the memo.
Castillo previously held the role of global investment specialist covering ultra-high net worth individuals at JPMorgan.
The bank said it had hired Marco Pacheco Romero, Andres Martin Cazenave — also from JPMorgan — and Rodrigo Pitre Mendez — previously of Morgan Stanley — as senior relationship managers, all based in Geneva.
In January, it hired Maria Vega Ibañez De La Cruz as Zurich-based deputy head of client management for ConoSur.
The bank rejigged its regional organisation at the International Wealth Management unit in August, dividing Southern and Central America into Brazilian and Latin America regions, with Marco Abrahão leading Brazil while Fernández Amann assumed leadership of the remaining markets.
The bank’s business servicing wealthy and ultra-wealthy clients managed 45 billion Swiss francs ($45 billion) in assets in Brazil at the end of September, with 25 billion Swiss francs in assets under management in the remaining LatAm region.
$1 = 1.0007 Swiss francs Reporting by Brenna Hughes Neghaiwi;p Editing by Kirsten Donovan
NEW DELHI (Reuters) – India’s political parties have been abusing Facebook Inc’s popular messaging service WhatsApp ahead of the country’s general election and the company has warned them not to do so, a senior executive said on Wednesday.
FILE PHOTO: A 3D printed Whatsapp logo is seen in front of a displayed Whatsapp logo in this illustration September 14, 2017. REUTERS/Dado Ruvic/File Photo
WhatsApp declined to name the parties or give the exact nature of the alleged misuse, but there is mounting concern in India that party workers could abuse the platform by using automated tools for mass messaging, or spread false news to sway voters.
The messaging app has become a key campaign tool used widely by workers of the ruling Bharatiya Janata Party (BJP) and the opposition Congress party, which accuse each other of propagating fake news while denying they do so themselves.
“We have seen a number of parties attempt to use WhatsApp in ways that it was not intended, and our firm message to them is that using it in that way will result in bans of our service,” Carl Woog, head of communications for WhatsApp, told reporters.
The next general election must be held by May.
The platform’s challenges in India are not unique. It was flooded with falsehoods and conspiracy theories ahead of the October election in Brazil, raising concerns that it was being used to distort the political debate.
India is WhatsApp’s biggest market with more than 200 million users.
Ahead of state polls in the western state of Rajasthan in December, BJP and Congress workers showed a Reuters reporter dozens of WhatsApp groups they belonged to and used for campaigning.
Woog said they had engaged with political parties to explain the company’s view that the app was not a “broadcast platform”.
“We are trying to be very clear going into the election that there is abuse on WhatsApp. We are working very hard to identify it and prevent it as soon as possible,” he said.
The BJP’s head of information technology, Amit Malviya, told Reuters he had not met with WhatsApp representatives and declined to comment further.
Congress’ social media head, Divya Spandana, said the party does not abuse WhatsApp.
WhatsApp has been at the center of controversy in India since last year after false messages spread on its platform sparked a number of mob lynchings.
WhatsApp has tried to curb the spread of fake news by educating users through roadshow campaigns, as well as print and radio advertising. It also limited the number of people someone can forward a message to at one time.
WhatsApp, which has 1.5 billion active users globally, said on Wednesday it bans two million accounts each month for sending bulk or automated messages. It did not say how many are banned in India.
Reporting by Sankalp Phartiyal and Aditya Kalra; Edited by Martin Howell and Darren Schuettler