Tag Archives: HPRD

Wall Street totters after mixed earnings, trade halt glitch

  • SEC investigating NYSE opening bell glitch
  • 3M slides on downbeat Q1 forecast
  • J&J falls on sales warning; GE down on weak profit view
  • Microsoft to report quarterly earnings after market close
  • Indexes: Dow up 0.18%, S&P 500 off 0.13%, Nasdaq down 0.25%

NEW YORK, Jan 24 (Reuters) – Wall Street was mixed on Tuesday as a raft of mixed earnings took some wind out of the sails of the recent rally.

The session got off to an rocky start, as a spate of NYSE-listed stocks were halted at the opening bell due to an apparent technical glitch, which caused initial price confusion and prompted an investigation by the U.S. Securities and Exchange Commission (SEC).

More than 80 stocks were affected by the glitch, which caused wide swings in opening prices in stocks, including Walmart Inc (WMT.N) and Nike Inc (NKE.N).

“It looks like NYSE got on it real early,” said Joseph Sroka, chief investment officer at NovaPoint in Atlanta. “Now they’re trying to determine what opening trade prices were.”

“Everyone involved in trade settlements is going to have a long day today.”

All three indexes sputtered near the starting line, with little apparent momentum in either direction.

Fourth quarter earnings season is in full swing, with 72 of the companies in the S&P 500 having reported. Of those, 65% have beaten consensus, just a hair below the 66% long-term average, according to Refinitiv.

On aggregate, analysts now expect S&P 500 earnings 2.9% below the year-ago quarter, down from the 1.6% year-on-year decline seen on Jan. 1, per Refinitiv.

“Earnings don’t make a bull or bear case for the market yet, but there’s an anxiousness among investors to be long when the Fed is done raising rates,” Sroka added. “We’re hitting a ramp in the earnings cycle, and by next week we’ll have a lot more information on the direction of the market.”

Economic data showed shallower-than-expected contraction in the manufacturing and services sector in the first weeks of the year, suggesting that the Federal Reserve’s restrictive interest rates are dampening demand.

The Dow Jones Industrial Average (.DJI) rose 60.69 points, or 0.18%, to 33,690.25, the S&P 500 (.SPX) lost 5.36 points, or 0.13%, to 4,014.45 and the Nasdaq Composite (.IXIC) dropped 28.39 points, or 0.25%, to 11,336.03.

Among the 11 major sectors of the S&P 500, industrials was down the most.

Intercontinental Exchange Inc (ICE.N), owner of the New York Stock Exchange, dropped 2.5% as SEC investigators searched for the cause of Tuesday’s opening bell confusion.

Alphabet Inc (GOOGL.O) shares dipped 1.8% after the Justice Department filed a lawsuit against Google for abusing its dominance of the digital advertising business.

Johnson & Johnson’s (JNJ.N) profit guidance came in above analyst expectations. Even so, its stock softened 0.3%.

Industrial conglomerates 3M Co (MMM.N) and General Electric Co (GE.N) both provided underwhelming forward guidance due to inflationary headwinds.

3M’s shares were off 5.1% while General Electric’s were modestly lower.

Aerospace/defense companies Lockheed Martin Corp (LMT.N) and Raytheon Technologies Corp (RTX.N) were a study in contrasts, with the former issuing a disappointing profit forecast and the latter beating estimates on solid travel demand.

Lockheed Martin and Raytheon were up 1.5% and 2.5%, respectively.

Railroad operator Union Pacific Corp missed profit estimates as labor shortages and severe weather delayed shipments. Its shares shed 2.7%.

Microsoft Corp (MSFT.O) is due to report after the bell.

Advancing issues outnumbered declining ones on the NYSE by a 1.16-to-1 ratio; on Nasdaq, a 1.06-to-1 ratio favored decliners.

The S&P 500 posted 27 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 69 new highs and 21 new lows.

Reporting by Stephen Culp; Additional reporting by Shreyashi Sanyal and Johann M Cherian in Bengaluru; Editing by Aurora Ellis

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

New suppliers race to plug in to electric car market

WOKING, England, Jan 23 (Reuters) – The global auto industry has committed $1.2 trillion to developing electric vehicles (EVs), providing a golden opportunity for new suppliers to grab contracts providing everything from battery packs to motors and inverters.

Startups specialising in batteries and coatings to protect EV parts, and suppliers traditionally focused on niche motorsports or Formula One (F1) racing, have been chasing EV contracts. Carmakers design platforms to last a decade, so high-volume models can generate large revenues for years.

The next generation of EVs is due to hit around 2025 and many carmakers have sought help plugging gaps in their expertise, providing a window of opportunity for new suppliers.

“We’ve gone back to the days of Henry Ford where everyone is asking ‘how do you make these things work properly?’,” says Nick Fry, CEO of F1 engineering and technology firm McLaren Applied.

“That’s a huge opportunity for companies like us.”

Bought from McLaren by private equity firm Greybull Capital in 2021, McLaren Applied has adapted an efficient inverter developed for F1 racing for EVs. An inverter helps control the flow of electricity to and from the battery pack.

The silicon carbide IPG5 inverter weighs just 5.5 kg (12 lb) and can extend an EV’s range by over 7%. Fry says McLaren Applied is working with around 20 carmakers and suppliers, and the inverter will appear in high-volume luxury EV models starting January 2025.

Mass-market carmakers often prefer to develop EV components in-house and own the technology themselves. After years of pandemic-related parts shortages, they are wary of over-reliance on suppliers.

“We just can’t afford to be reliant on third parties making those investments for us,” said Tim Slatter, head of Ford (F.N) in Britain.

Traditional suppliers, such as German heavyweights Bosch and Continental (CONG.DE), are also investing heavily in EVs and other technologies to stay ahead in a fast-changing industry.

But smaller companies say there are still opportunities, particularly with low-volume manufacturers that cannot afford huge EV investments, or luxury and high-performance carmakers seeking an edge.

Croatia’s Rimac, an electric hypercar maker part-owned by Germany’s Porsche AG (P911_p.DE) that also supplies battery systems and powertrain components to other automakers, says an undisclosed German carmaker will use a Rimac battery system in a high-performance model – with annual production of around 40,000 units – starting this year, with more signed up.

“We need to be 20%, 30% better than what they can do and then they work with us,” CEO Mate Rimac says. “If they can make a 100-kilowatt hour battery pack, we must make a 130-kilowatt pack in the same dimensions for the same cost.”

NO TIME TO LOSE

Some suppliers like Cambridge, Massachusetts-based Actnano have had long relationships with EV pioneer Tesla (TSLA.O). Actnano has developed a coating that protects EV parts from condensation and its business has spread to advanced driver-assistance systems (ADAS), as well as other carmakers including Volvo (VOLCARb.ST), Ford, BMW (BMWG.DE) and Porsche.

California-based startup CelLink has developed an entirely automated, flat and easy-to-install “flex harness”, instead of a wire harness to group and guide cables in a vehicle. CEO Kevin Coakley would not identify customers but said CelLink’s harnesses had been installed in around a million EVs. Only Tesla has that scale.

Coakley said CelLink was working with U.S. and European carmakers, and with a European battery maker on battery wiring.

Others are focused on low-volume manufacturers, like UK startup Ionetic, which develops battery packs that would be too expensive for smaller companies to make themselves.

“Currently it costs just too much to electrify, which is why you see some manufacturers delaying their electrification launch,” CEO James Eaton said.

Since 1971, Swindon Powertrain has developed powerful motorsports engines. But it has now also developed battery packs, electric powertrains, e-axles and is working with around 20 customers, including carmakers and an electric vertical take-off and landing (eVTOL) aircraft maker.

“I realized if we don’t embrace this, we’re going to end up working for museums,” said managing director Raphael Caille.

But time may be running out.

Mate Rimac says major carmakers scrambled in the last three years to roll out EVs and now have strategies largely in place.

“For those who haven’t signed projects, I’m not sure how long the window of opportunity will remain open,” he said.

($1 = 0.8226 pounds)

Reporting by Nick Carey
Editing by Mark Potter

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Ex-Theranos president Balwani sentenced to nearly 13 years for fraud

Dec 7 (Reuters) – A U.S. judge on Wednesday sentenced former Theranos Inc President Ramesh “Sunny” Balwani to 12 years and 11 months in prison on charges of defrauding investors and patients of the blood testing startup led by Elizabeth Holmes, a spokesperson for the U.S. attorney’s office confirmed.

U.S. District Judge Edward Davila in San Jose, California, imposed the sentence on Balwani, who was convicted by a jury on two counts of conspiracy and 10 counts of fraud in July.

Prosecutors said Balwani, 57, conspired with Holmes, 38, to deceive Silicon Valley investors into believing the company had achieved miniaturized machines that could accurately run a broad array of medical diagnostic tests from a small amount of blood.

Meanwhile, the company secretly relied on traditional methods to run tests and provided patients with inaccurate results, prosecutors said.

Holmes, who started the company as a college student and became its public face, was indicted alongside Balwani, her former romantic partner, in 2018.

Davila later granted each a separate trial after Holmes said she would take the stand and testify that Balwani was abusive in their relationship. He has denied the allegations.

Holmes was convicted in January on four counts of fraud and conspiracy but acquitted of defrauding patients.

Davila sentenced Holmes to 11-1/4 years in prison at a hearing last month, calling Theranos a venture “dashed by untruths, misrepresentations, plain hubris and lies.”

Prosecutors subsequently argued Balwani should receive 15 years in prison, saying he knew Theranos’ tests were inaccurate from overseeing the company’s laboratory operations, and decided to “prioritize Theranos’ financial health over patients’ real health.”

The probation office had recommended a nine-year sentence.

Balwani’s attorneys asked for a sentence of probation, arguing that he sought to make the world a better place through Theranos and was not motivated by fame or greed.

Once valued at $9 billion, Theranos promised to revolutionize how patients receive diagnoses by replacing traditional labs with small machines envisioned for use in homes, drugstores and even on the battlefield.

The company collapsed after a series of Wall Street Journal articles in 2015 questioned its technology.

The case is U.S. v. Balwani, U.S. District Court, Northern District of California, No. 18-cr-00258.

Reporting by Jody Godoy in New York;
Editing by Noeleen Walder and Bill Berkrot

Our Standards: The Thomson Reuters Trust Principles.

Jody Godoy

Thomson Reuters

Jody Godoy reports on banking and securities law. Reach her at jody.godoy@thomsonreuters.com

Read original article here

OPEC+ weighs rollover against small production cut, sources say

The logo of the Organization of the Petroleum Exporting Countries (OPEC) is pictured at its headquarters in Vienna, Austria, August 21, 2015. REUTERS/Heinz-Peter Bader/File Photo

Register now for FREE unlimited access to Reuters.com

  • OPEC+ meets on Monday to set policy
  • Iran nuclear deal could boost oil supply
  • Russia’s gas supplies to Europe cut further
  • Brent crude falls to $95 from $120 in June

LONDON, Sept 4 (Reuters) – OPEC+ is likely to keep oil output quotas unchanged for October at a meeting on Monday, six OPEC+ sources said, though some sources would not rule out a small production cut to bolster prices that have slid on fears of an economic slowdown.

The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, known collectively as OPEC+, are expected to roll over existing policies, six OPEC+ sources said on Sunday and Monday.

However, three of the sources said the producer group could also discuss a small cut of 100,000 barrels per day (bpd).

Register now for FREE unlimited access to Reuters.com

Monday’s OPEC+ meeting is set against a complex backdrop including a potential supply boost from Iranian crude returning to the market if Tehran is able to revive its 2015 nuclear deal with global powers.

Russia, meanwhile, has said it will stop supplying oil to countries that support the idea of capping the price of Russian energy supplies over the its military conflict in Ukraine.

Its gas deliveries in Europe, meanwhile, have been cut further, which is likely to spark more price spikes. read more

Brent crude oil has dropped to about $95 a barrel from $120 in June on fears of an economic slowdown and recession in the West.

Iran is expected to add 1 million barrels per day to supply or 1% of global demand if sanctions are eased, though the prospects for a nuclear deal looked less clear on Friday. read more

Last month, top OPEC producer Saudi Arabia flagged the possibility of output cuts to address what it sees as exaggerated oil price declines. read more

Signals from the physical market, however, suggest that supply remains tight and many OPEC states are producing below targets while fresh Western sanctions are threatening Russian exports.

Register now for FREE unlimited access to Reuters.com

Additional reporting by Rowena Edwards and Olesya Astakhova
Writing by Dmitry Zhdannikov
Editing by David Goodman

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Philips parts ways with CEO in midst of massive recall

  • Van Houten to leave after almost 12 years at helm
  • To be replaced on Oct. 15 by Connected Care head Jakobs
  • Shares up 2%, but down more than 50% since product recall

AMSTERDAM, Aug 16 (Reuters) – Philips (PHG.AS) Chief Executive Frans van Houten will leave the company in October, the Dutch health technology firm said on Tuesday, after a key product recall cut its market value by more than half over the past year.

Philips said Van Houten would be replaced on Oct. 15 by Roy Jakobs, head of the company’s Connected Care businesses. Van Houten’s third term as CEO had been due to end in April.

Jakobs, 48, is currently overseeing the company’s recall of millions of ventilators and machines for the treatment of sleep apnea. That process has lopped almost $30 billion off Philips’ value as investors fear large claims.

Register now for FREE unlimited access to Reuters.com

Register

“The time is right for the change in leadership,” Philips said in a statement.

Philips shares were up 2% in afternoon trading, but are still down almost 60% since its warning in June 2021 that foam used for sound dampening might release toxic gases that could carry cancer risks. read more

When it started the recall in September last year, Philips said it expected to complete the replacement and repair of all affected machines within a year.

But after broadening the scope of the operation to around 5.5 million devices worldwide, Philips in June said the work was only around halfway done.

ADDITIONAL TESTS

The U.S. Food and Drug Administration (FDA) in January classified the recall as Class 1, or the most serious type, posing a threat of injury or death.

The FDA said on Tuesday it had received 48,000 new Medical Device Reports containing complaints about potential injuries related to the Philips devices, including 44 deaths, between May 1 and July 31 this year. read more

That is more than twice as many reports as it received for the entire year to April 30, 2022, which totalled over 21,000. They included 124 deaths.

CEO Frans van Houten from the Dutch health technology company Philips presents the company’s financial results for the fourth quarter and full year 2018, in Amsterdam, Netherlands, January 29, 2019. REUTERS/Eva Plevier

The FDA said it would analyse the reports and examine the possible reasons for the increased number.

The complaints do not prove causality, but are an indicator of the severity of the problem.

Philips in June said it had supplied the FDA with evidence from independent tests on the recalled devices which showed foam degradation was mainly linked to the use of aggressive, unauthorised ozone-based cleaning products. read more

It has promised to run additional tests to determine the potential toxicity of degraded foam parts, even though the tests so far had shown that the parts did not leave the machine.

Philips estimated the costs of the recall at 900 million euros ($915 million). That sum does not cover the possible costs of litigation. The company is facing more than a hundred class action suits.

“If you have three recalls in 10 years, it’s too much. His (Van Houten’s) position had become untenable,” said analyst Jos Versteeg of InsingerGilissen. He was referring to a defibrillator recall in 2017 and problems with medical scanners in 2014.

“This situation is not really under control, I think, because we’re still waiting for the definite conclusion of the (safety) studies.”

Although the blow to Philips’ reputation could have led it to pick an outsider for the top job, supervisory board chairman Feike Sijbesma said Jakobs was the right man to fix the company’s problems.

“He led the ramp up of production following the recall and knows very much about patient safety and product quality, so also from that perspective he is the right person,” he said.

During his almost 12 years at the helm, 62-year old Van Houten oversaw the disposal of Philips’ lighting and consumer electronics divisions.

Philips now focuses on medical imaging, monitoring and diagnostic equipment and competes against General Electric (GE.N) and Siemens Healthineers (SHLG.DE).

($1 = 0.9833 euros)

Register now for FREE unlimited access to Reuters.com

Register

Reporting by Bart Meijer; Additional reporting by Ahmed Aboulenein in Washington; Editing by Matt Scuffham, Emelia Sithole-Matarise and Richard Pullin

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Inside the super-secure Swiss lab trying to stop the next pandemic

SPIEZ, Switzerland, July 31 (Reuters) – The setting is straight from a spy thriller: Crystal waters below, snow-capped Swiss Alps above and in between, a super-secure facility researching the world’s deadliest pathogens.

Spiez Laboratory, known for its detective work on chemical, biological and nuclear threats since World War Two, was tasked last year by the World Health Organization to be the first in a global network of high-security laboratories that will grow, store and share newly discovered microbes that could unleash the next pandemic.

The WHO’s BioHub program was, in part, born of frustration over the hurdles researchers faced in getting samples of the SARS-CoV-2 virus, first detected in China, to understand its dangers and develop tools to fight it.

Register now for FREE unlimited access to Reuters.com

Register

But just over a year later, scientists involved in the effort have encountered hurdles.

These include securing guarantees needed to accept coronavirus variant samples from several countries, the first phase of the project. Some of the world’s biggest countries might not cooperate. And there is no mechanism yet to share samples for developing vaccines, treatments or tests without running afoul of intellectual property protections.

“If we have another pandemic like coronavirus, the goal would be it stays wherever it starts,” Isabel Hunger-Glaser, head of the BioHub project at Spiez, told Reuters in a rare media interview at the lab. Hence the need to get samples to the hub so it can help scientists worldwide assess the risk.

“We have realised it’s much more difficult” than we had thought, she said.

SAFETY IN THE MOUNTAINS

Spiez Lab’s exterior provides no hint of the high-stakes work inside. Its angular architecture resembles European university buildings erected in the 1970s. At times, cows graze on the grassy central courtyard.

But the biosafety officer in charge keeps his blinds shut. Alarms go off if his door is open for more than a few seconds. He monitors several screens showing security camera views of the labs with the greatest Biosafety Level (BSL) precautions.

SARS-CoV-2, the virus causing COVID, is studied in BSL-3 labs, the second-highest security level. Samples of the virus used in the BioHub are stored in locked freezers, said Hunger-Glaser. A system of decreasing air pressure means clean air would flow into the most secure areas, rather than contaminated air flowing out, in a breach.

Scientists working with coronavirus and other pathogens wear protective suits, sometimes with their own air supply. They work with samples in a hermetically sealed containment unit. Waste leaving the lab is super-heated at up to 1,000 degrees Celsius (1,830 F) to kill pathogens clinging to it.

To date, Spiez has never had an accidental leak, the team say. That reputation is a key part of why they were chosen as the WHO’s first BioHub, said Hunger-Glaser.

The proximity to WHO headquarters, two hours away in Geneva, helped too. The WHO and Swiss government are funding the annual 600,000 Swiss franc ($626,000) budget for its first phase.

Researchers have always shared pathogens, and there are some existing networks and regional repositories. But the process is ad hoc and often slow.

The sharing process has also been controversial, for instance when researchers in wealthy countries get credit for the work of less well-connected scientists in developing nations.

“Often you just exchanged material with your buddies,” said Hunger-Glaser.

Marion Koopmans, head of the Erasmus MC Department of Viroscience in the Netherlands, said it took a month for her lab to get hold of SARS-CoV-2 after it emerged in the central Chinese city of Wuhan in December 2019.

Chinese researchers were quick to post a copy of the genetic sequence online, which helped researchers begin early work. But efforts to understand how a new virus transmits and how it responds to existing tools requires live samples, scientists said.

EARLY CHALLENGES

Luxembourg was the first country to share samples of new coronavirus variants with the BioHub, followed by South Africa and Britain.

Luxembourg sent in Alpha, Beta, Gamma and Delta variants, while the latter two countries shared Omicron, WHO said.

Luxembourg got Omicron samples from South Africa, via the hub, less than three weeks after it was identified, enabling its researchers to start assessing the risks of the now-dominant strain. Portugal and Germany also received Omicron samples.

But Peru, El Salvador, Thailand and Egypt, all of which signalled in early 2022 that they wanted to send in variants found domestically, are still waiting, chiefly because it is unclear which official in each country should provide the necessary legal guarantees, Hunger-Glaser said.

There is no international protocol for who should sign the forms providing safety details and usage agreements, she added. None of the four countries responded to requests for comment.

Both WHO and Hunger-Glaser stressed the project is a pilot, and they have already sped up certain processes.

Another challenge is how to share samples used in research that could lead to commercial gain, such as vaccine development. BioHub samples are shared for free to provide broad access. However this throws up potential problems if, for example, drugmakers reap profits from the discoveries of uncompensated researchers.

WHO plans to tackle this longer-term, and bring labs in each global region online, but it is not yet clear when or how this will be funded. The project’s voluntary nature may also hold it back.

“Some countries will never ship viruses, or it can be extremely difficult – China, Indonesia, Brazil,” said Koopmans, referring to their stance in recent outbreaks. None of the three responded to requests for comment.

The project also comes amid heightened attention on labs worldwide after unproven claims in some Western countries that a leak from a high-security Wuhan lab may have sparked the COVID-19 pandemic, an accusation China and most international scientists have dismissed.

Hunger-Glaser said the thinking around emerging threats must change post-COVID-19.

“If it is a real emergency, WHO should even get a plane” to transport the virus to scientists, she said.

“If you can prevent the spreading, it’s worthwhile.”

Register now for FREE unlimited access to Reuters.com

Register

Reporting by Jennifer Rigby; Editing by Michele Gershberg and Nick Macfie

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Indexes drop after Walmart profit warning; Nasdaq down 2%

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 21, 2022. REUTERS/Brendan McDermid

Register now for FREE unlimited access to Reuters.com

Register

  • Walmart cuts profit forecast; news hits retailers
  • McDonald’s up as sales, profit top estimates
  • Coca-Cola up on forecast raise
  • Indexes down: Dow 0.8%, S&P 500 1.3%, Nasdaq 2%

NEW YORK, July 26 (Reuters) – U.S. stocks were sharply lower on Tuesday afternoon, with Nasdaq down more than 2%, as a profit warning by Walmart dragged down retail shares and fueled fears about consumer spending.

Walmart (WMT.N) shares fell 8% after the retailer cut its full-year profit forecast late on Monday. Walmart blamed surging prices for food and fuel, and said it needed to cut prices to pare inventories. read more

Shares of Target Corp (TGT.N) declined 3.8% and Amazon.com Inc (AMZN.O) dropped 5.1%. read more

Register now for FREE unlimited access to Reuters.com

Register

Also, Amazon said it would raise fees for delivery and streaming service Prime in Europe by up to 43% a year. read more

Amazon was among the biggest drags on the Nasdaq and S&P 500, while consumer discretionary (.SPLRCD) fell more than 3% and led declines among S&P 500 sectors.

“The majority of companies that reported today beat earnings, and that’s been the case. But of course there have been some warnings, and that’s what the market is focusing on,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“Walmart basically pulled the plug, and most retailers are lower across the board.”

Meanwhile, Coca-Cola Co (KO.N) gained 1.9% after the company raised its full-year revenue forecast. McDonald’s Corp (MCD.N) rose 3% after beating quarterly expectations. read more

A busy week for earnings includes reports from Alphabet Inc (GOOGL.O) and Microsoft Corp (MSFT.O) after the bell. Microsoft was down 3.4% and Alphabet was down 2.9%.

The Dow Jones Industrial Average (.DJI) fell 239.66 points, or 0.75%, to 31,750.38, the S&P 500 (.SPX) lost 52.28 points, or 1.32%, to 3,914.56 and the Nasdaq Composite (.IXIC) dropped 239.38 points, or 2.03%, to 11,543.29.

The Federal Reserve started a two-day meeting and on Wednesday, it is expected to announce a 0.75 percentage point interest rate hike to fight inflation. read more Investors have worried that aggressive interest rate hikes by the Fed could tip the economy into recession.

Earnings from S&P 500 companies are expected to have risen 6.2% for the second quarter from the year-ago period, according to Refinitiv data.

Among the week’s heavy slate of economic news, data Tuesday showed U.S. consumer confidence dropped to nearly a 1-1/2-year low in July, pointing to slower economic growth at the start of the third quarter. read more

Advance second-quarter GDP data on Thursday is likely to be negative after the U.S. economy contracted in the first three months of the year.

Declining issues outnumbered advancing ones on the NYSE by a 1.82-to-1 ratio; on Nasdaq, a 1.51-to-1 ratio favored decliners.

The S&P 500 posted 1 new 52-week highs and 30 new lows; the Nasdaq Composite recorded 32 new highs and 123 new lows.

Register now for FREE unlimited access to Reuters.com

Register

Additional reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur, Anil D’Silva and David Gregorio

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Sanctions-hit Kremlin stages ‘Russian Davos’ bereft of elite, Putin speaks Friday

  • International economic forum June 15-18 in St Petersburg
  • No Western bigwigs at ‘Russian Davos’ due to sanctions
  • Putin to give big speech June 17, speak to media – aide

June 14 (Reuters) – Russia for years hosted world leaders and business titans at its annual economic forum in St Petersburg, but the “Russian Davos” will see little of the global financial elite this year with Moscow isolated by sanctions over its actions in Ukraine.

This week, to make up for the lack of major Western attendees, Russia is giving pride of place to smaller players or countries like China – the world’s second largest economy – that have not joined in sanctions.

“Foreign investors are not only from the United States and European Union,” Kremlin spokesperson Dmitry Peskov told reporters on Tuesday, pointing to the Middle East and Asia.

Register now for FREE unlimited access to Reuters.com

Register

President Vladimir Putin will give a major speech on Friday focusing on the international economic situation and Russia’s tasks in the near future, Interfax news agency cited Kremlin aide Yuri Ushakov as saying.

He will also meet media on the sidelines of the forum at about 8 p.m. Moscow time (1600 GMT) that day, he said.

The Kremlin launched the St Petersburg International Economic Forum (SPIEF) in 1997 to attract foreign investment, discuss economic policy and project an image it was open for business after the demise of Soviet rule.

Russia long compared SPIEF with the World Economic Forum, the annual blue-ribbon event for global VIPs held in the Swiss Alpine resort of Davos.

Now, with Western leaders shunning dealings with Russia, Putin will have no traditional meeting with political movers and shakers and corporate bigwigs from the United States and Europe.

There were no names of U.S. and European companies or their CEOs on the published schedule for the June 15-18 SPIEF – reflecting fears of punishment under the most sweeping sanctions regime ever imposed on a major power.

Even companies that have hung on in Russia despite the general exodus of Western investors were not listed.

Ushakov said high-level delegations from more than 40 nations were expected while 1,244 Russian and 265 foreign companies had confirmed they would be there.

In one exception to the absence of Western figures, the head of the American Chamber of Commerce in Russia along with French and Italian counterparts will speak at a session on Thursday called “Western Investors in Russia: New Reality.”

TOXIC RELATIONS

Russia’s relations with the West have turned toxic since it sent armoured forces into Ukraine on Feb. 24 in what it calls a “special military operation” to remove threats to its security. Ukraine and its Western backers call Russia’s actions an unprovoked invasion aimed at grabbing territory.

SPIEF will therefore look and feel very different.

Having once welcomed then- German chancellor Angela Merkel, ex-IMF chief Christine Lagarde, Goldman Sachs’ Lloyd Blankfein, Citi’s Vikram Pandit and ExxonMobil’s Rex Tillerson, Russia will give top billing this week to the presidents of allied states Kazakhstan and Armenia.

Egyptian President Abdel Fattah al-Sisi will address the meeting via video link, RIA news agency cited Ushakov as saying.

As foreign companies write down billions of their once promising Russian investments, domestic firms and banks are rushing to take over businesses left behind. read more

“Sanctions are for the long haul. Globalisation as it used to be has ended,” Andrey Kostin, CEO of sanctioned bank VTB, Russia’s second-largest, told RBC business daily.

‘NEW OPPORTUNITIES IN A NEW WORLD’

In past years, SPIEF’S sessions would focus on investment-oriented topics such as privatisation by Moscow and initial public offerings (IPOs).

This year, SPIEF’s official title is “New Opportunities in a New World”. Session topics include new possibilities for Russian economic growth, improving trade with the five non-Western BRICS powers and the future of Russia’s sanctioned financial sector.

Another session – “A new form of international cooperation: how will payments be made?” – touches on Russia’s ejection from the global SWIFT payment system and its move to circumvent the ban by demanding payments for gas exports in roubles. It will have speakers from allies Cuba and Venezuela as well as Turkey and Egypt, which have also eschewed sanctions.

There will be a session on “fake news” – a panel attended by state media, the General Prosecutor’s Office and the Foreign Ministry as Moscow pursues an information war with the West.

Other countries sending officials to attend or speak there via videolink include China, Belarus, Central African Republic, India, Iran, Nicaragua, Serbia and the United Arab Emirates.

Some participants asked their employers’ names not be printed on their personal badges, RBC reported, citing Rosgoncress, the state company organising the forum.

“Money loves silence now as never before,” said Denis Denisov, head of the Russian branch of international advisory firm EM.

($1 = 57.4500 roubles)

Register now for FREE unlimited access to Reuters.com

Register

Reporting by Reuters
Editing by Mark Heinrich and Grant McCool

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Police face questions over their response to Texas school massacre

UVALDE, Texas, May 26 (Reuters) – The gunman in the Texas school massacre barged unchallenged through an unlocked door, then killed 19 children and two teachers while holed up in their classroom for an hour before a tactical team stormed in and killed him, police said on Thursday.

The latest official details from the Texas Department of Public Safety (DPS) on Tuesday’s mass shooting differed sharply from initial police accounts and raised questions about security measures at the elementary school and the response of law enforcement.

The school district in Uvalde, Texas, about 80 miles (130 km) west of San Antonio, has a standing policy of locking all entrances, including classroom doors, as a safety precaution. But one student told Reuters some doors were left unlocked the day of the shooting to allow visiting parents to come and go for an awards day event.

Register now for FREE unlimited access to Reuters.com

Register

The newly detailed chronology came hours after videos emerged showing desperate parents outside Robb Elementary School during the attack. They pleaded with officers to storm the building, and some fathers had to be restrained.

The human toll of the rampage, which ranks as the deadliest U.S. school shooting in nearly a decade, deepened with news that the husband of one of the slain teachers died of a heart attack on Thursday while preparing for his wife’s funeral. read more

At a briefing for reporters, DPS spokesperson Victor Escalon said the gunman, Salvador Ramos, 18, made his way unimpeded on to the school grounds after crashing his pickup truck nearby. The carnage began 12 minutes later.

Preliminary police reports had said that Ramos, who drove to the school from his home after shooting and wounding his grandmother there, was confronted by a school-based police officer as he ran toward the school. Instead, no armed officer was present when Ramos arrived at the school, Escalon said.

The suspect crashed his pickup truck nearby at 11:28 a.m. (1628 GMT), opened fire on two people at a funeral home across the street, then scaled a fence onto school property and walked into one of the buildings through an unlocked rear door at 11:40 a.m. (1640 GMT), Escalon said.

Two responding officers entered the school four minutes later but took cover after Ramos fired multiple rounds at them, Escalon said.

The shooter then barricaded himself inside the fourth-grade classroom of his victims, mostly 9- and 10-year-olds, for an hour before a U.S. Border Patrol tactical team breached the room and fatally shot him, Escalon said. Officers reported hearing at least 25 gunshots coming from inside the classroom early in the siege, he said. read more

‘TOUGH QUESTION’

The hour-long interval before border agents stormed in appeared to be at odds with an approach adopted by many law enforcement agencies to confront “active shooters” at schools immediately to stop bloodshed.

Asked if police should have made en masse entry sooner, Escalon answered, “That’s a tough question,” adding that authorities would offer more information as the investigation proceeded.

He described a chaotic scene after the initial exchange of gunfire, with officers calling for backup and evacuating students and staff.

In one video posted on Facebook by a man named Angel Ledezma, parents can be seen breaking through yellow police tape and yelling at officers to go into the building.

“It’s already been an hour, and they still can’t get all the kids out,” Ledezma said in the video. He did not immediately respond to a request for comment.

Another video posted on YouTube showed officers restraining at least one adult. One woman can be heard saying, “Why let the children die? There’s shooting in there.”

“We got guys going in to get kids,” one officer is heard telling the crowd. “They’re working.”

‘AWARDS DAY’

Investigators were still seeking a motive, Escalon said. Ramos, a high school dropout, had no criminal record and no history of mental illness. Minutes before the attack, however, he had written an online message saying he was about to “shoot up an elementary school,” according to Governor Greg Abbott.

The gunman’s father, also named Salvador Ramos, 42, expressed remorse for his son’s actions in an interview published Thursday by news site The Daily Beast.

“I just want the people to know I’m sorry, man, [for] what my son did,” he was quoted as saying. “He should’ve just killed me, you know, instead of doing something like that to someone.”

In one of the more chilling accounts of the shooting, a fourth-grade boy who was in the classroom told local TV station KENS5 that the gunman announced his presence when he entered by crouching slightly and saying, “It’s time to die.”

Why a rear door to the school building would be left unsecured remained under investigation, Escalon said.

Miguel Cerrillo, 35, and his 8-year-old daughter, Elena, a third-grader at Robb, said the door the shooter used was usually locked.

“But that day they were not locked because it was awards day, and some parents were coming in through those doors,” said Elena, who was in the school at the time of the shooting. “The parking was really packed in front so people were parking back there and using that door.”

At least 17 people, including children, were also injured in the massacre.

The attack, coming 10 days after 10 people were killed by an 18-year-old gunman in a supermarket in Buffalo, New York, has reignited a national debate over firearms. U.S. President Joe Biden and fellow Democrats have vowed to push for new gun restrictions, despite resistance from Republicans. read more

Biden is due to travel Uvalde on Sunday.

Register now for FREE unlimited access to Reuters.com

Register

Reporting by Gabriella Borter and Brad Brooks in Uvalde, Texas; additional reporting by Brendan O’Brien in Chicago, Doina Chiacu in Washington, Andrew Hay in Taos, New Mexico and Costas Pitas in Los Angeles; writing by Joseph Ax and Steve Gorman; editing by Cynthia Osterman and Stephen Coates

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Biden invokes Defense Production Act to increase infant formula supply

WASHINGTON, May 18 (Reuters) – President Joe Biden took steps on Wednesday to address the shortage of infant formula in the United States, invoking the Defense Production Act to help manufacturers obtain the ingredients needed to ramp up supply, the White House said.

Biden also directed U.S. agencies to use Defense Department commercial aircraft to bring formula into the United States from overseas.

Baby formula aisles at U.S. supermarkets have been decimated since top U.S. manufacturer Abbott Laboratories (ABT.N) in February recalled formulas after complaints of bacterial infections.

Register now for FREE unlimited access to Reuters.com

Register

On Monday, Abbott said it had reached an agreement with the U.S. health regulator to resume production of baby formula at its Michigan plant, a major step toward resolving the nationwide shortage.

In a letter to Health and Human Services Secretary Xavier Becerra and Agriculture Secretary Tom Vilsack, Biden noted that the industry should be producing more formula in the coming weeks and months.

“Imports of baby formula will serve as a bridge to this ramped-up production. Therefore I am requesting you take all appropriate measures available to get additional safe formula into the country immediately,” he said.

The White House said Biden was invoking the Defense Production Act to ensure manufacturers have the ingredients to make safe formula.

“The president is requiring suppliers to direct needed resources to infant formula manufacturers before any other customer who may have ordered that good,” the White House said.

In addition, he launched “Operation Fly Formula” to hasten imports of infant formula and get more formula to stores quickly.

Biden has directed HHS and USDA to use military commercial aircraft to pick up overseas infant formula that meets U.S. health and safety standards.

“Bypassing regular air freighting routes will speed up the importation and distribution of formula and serve as an immediate support as manufacturers continue to ramp up production,” the White House said.

Register now for FREE unlimited access to Reuters.com

Register

Reporting by Eric Beech and Steve Holland; Editing by Tim Ahmann and David Gregorio

Our Standards: The Thomson Reuters Trust Principles.

Read original article here