व्यापार

(Reuters) -The U.S. Department of Justice has launched an inquiry into the collapse of bankrupt auto parts maker First Brands Group, the Financial Times reported on Thursday, citing people familiar with the matter. The probe, led by the U.S. Attorney's Office for the Southern District of New York, is at an early stage and being described as a fact-finding mission, the report said. First Brands did not immediately respond to Reuters request for comment. Such probes do not necessarily mean any wrongdoing has occurred and may not lead to charges being filed or cases being brought, report added. First Brands, which makes filters, brakes and lighting systems for the automotive, filed for bankruptcy protection last month after its lenders began investigating irregularities in the company's financial reporting. The company has $11.6 billion in total liabilities, according to court documents. The auto parts maker has separately appointed a special committee of independent board directors to investigate its off-balance sheet financing arrangements and whether its invoices were factored in multiple times. Financial troubles at First Brands and the recent bankruptcy of subprime lender Tricolor Holdings, have rattled debt investors and stoked fears of broader stress in corporate debt markets, according to bondholders and bankruptcy experts. Some of the financial firms exposed to First Brands include Jefferies, which disclosed $715 million in exposure through Leucadia Asset Management, and UBS, which is assessing exposure on more than $500 million tied to the company. (Reporting by Prakhar Srivastava in Bengaluru; Editing by Shailesh Kuber)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

(Reuters) -The United States purchased Argentine pesos and finalized a $20 billion currency swap framework with Argentina's central bank after a meeting between the two countries' top finance officials in Washington this week, U.S. Treasury Secretary Scott Bessent said on Thursday. "The U.S. Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets," Bessent said in a post on X. (Reporting by Bhargav Acharya and Ismail Shakil; Editing by Chris Reese)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Marcelo Teixeira NEW YORK (Reuters) -U.S. chocolate consumers will face elevated chocolate prices this coming Halloween period as cocoa costs have more than doubled since early 2024, according to a report released on Thursday by Wells Fargo's Agri-Food Institute. While wholesale cocoa prices have eased from late 2024 peaks, manufacturers are still passing on to consumers their increased costs. Companies are also reducing seasonal product lines and implementing "shrinkflation" – reducing portion sizes while maintaining prices, the report said. The surge in cocoa costs was caused by severe supply disruptions in West Africa, which accounts for approximately 70% of global cocoa production. Heavy rains in late 2023 triggered black pod disease and crop rot, while subsequent El Nino-induced droughts in 2024 increased the prevalence of cocoa swollen shoot virus disease. Global cocoa production fell 12.9% year-over-year to 4.37 million metric tons in the last crop season, creating a supply deficit of 494,000 metric tons, the largest in over 60 years, according to the International Cocoa Organization (ICO). Production in Ivory Coast, the world's largest producer, dropped 25.3%, while Ghana's output declined 31.3%. The outlook remains challenging, Wells Fargo said, citing preliminary assessments by cocoa exporters that point to a 10% decline in output for the 2025/26 crop year beginning in October across four West African producers. "It is likely that cocoa prices will remain high at least through the next crop year ending September 2026 given the current record cocoa supply deficit," the report stated.  Recently imposed tariffs on major suppliers of cocoa and cocoa products to the U.S. States are an added cost factor. The main U.S. suppliers are Ecuador, Ivory Coast, Dominican Republic and Ghana. All of them received so-called "reciprocal" tariffs, ranging from 15% to 25%. U.S. importers and chocolate makers need to pay that additional amount when the beans or byproducts such as cocoa butter or cocoa powder arrive in the country. Cocoa is only produced in tropical regions.  Wells Fargo analysts said consumers should shop for treats with less cocoa content, compare prices across retailers, and consider generic alternatives, which can offer savings compared to branded products. (Reporting by Marcelo TeixeiraEditing by Marguerita Choy)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

(Reuters) -The U.S. Department of Justice has launched an inquiry into the collapse of bankrupt auto parts maker First Brands Group, the Financial Times reported on Thursday, citing people familiar with the matter. The probe, led by the U.S. Attorney's Office for the Southern District of New York, is at an early stage and described as a fact-finding mission, the report said. First Brands filed for bankruptcy protection last month after its lenders began investigating irregularities in the company's financial reporting. First Brands did not immediately respond to Reuters request for comment. (Reporting by Prakhar Srivastava in Bengaluru; Editing by Shailesh Kuber)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Promit Mukherjee OTTAWA (Reuters) -Canada's federal statistics agency said on Thursday it might have to postpone releasing September international trade data next month if the U.S. government shutdown drags on. The last time this happened was in December 2018, when the U.S. government shutdown lasted for 35 days. Canada exports over 70% of its merchandise south of the border, so U.S. government data on imports is required to prepare accurate trade statistics. Statistics Canada is due to publish the next report on November 4 and will provide updates as information becomes available, the agency said in an email. Hundreds of thousands of U.S. federal employees stopped working on October 1 when the government shut down due to a budget impasse in Congress. The shutdown, the 15th since 1981, suspended scientific research, financial oversight, environmental cleanup, collection efforts, release of statistics and a wide range of other activities. Monthly gross domestic product data, based on industry output statistics, is not directly affected, but contingency plans are being developed to ensure that the quarterly balance of payments and GDP releases scheduled for late November proceed as planned, StatsCan said.  (Reporting by Promit Mukherjee; Editing by Richard Chang)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Suzanne McGee and Chibuike Oguh NEW YORK (Reuters) -In 1996, then-Federal Reserve chairman Alan Greenspan wondered aloud how we could know when "irrational exuberance" had gripped financial markets, comments that led many to later describe him as a sage who anticipated the dotcom boom and bust. Now, when markets repeatedly peak as the prospects of artificial intelligence lift valuations of several technology heavyweights including Nvidia, Microsoft and Oracle, similar warnings are stacking up. International Monetary Fund chief Kristalina Georgieva warned on Wednesday about the risks to the world economy from potentially large corrections in lofty stock markets. Meanwhile, JPMorgan Chase CEO Jamie Dimon warned of a heightened risk of a significant correction in the U.S. stock market within the next six months to two years, the BBC reported. "Jamie Dimon is like the Greenspan of today," said Mark Malek, chief investment officer at Siebert Financial, who back then was working on multiple acquisition deals on behalf of Lucent Technologies, which itself went from being an internet market darling to a poster child for Greenspan's irrational exuberance. In December 1996, Greenspan posed a seemingly innocuous rhetorical question during a dinner speech: "How do we know when irrational exuberance has unduly escalated asset values?" The market reaction was immediate. Asian stocks fell 3%; those in Europe followed suit and the next morning, the S&P 500 tumbled 2%. But within days, those losses had evaporated, and within a few weeks, stocks had not only regained all that lost ground but were trading 10% above the levels they were when Greenspan spoke. It would take more than three years for the dotcom bubble to burst and give Greenspan the reputation of possessing uncanny foresight, even though anyone who heeded his dinner warning bell would have forfeited gains of more than 100% over that time period. BULLISH BEHAVIOR ON DISPLAY  Investors draw both parallels and divergences with the current market, where the S&P 500, Nasdaq and the Dow have hit new heights this year. The S&P 500 and the Nasdaq hit fresh record highs on Thursday and are up about 15% and 19%, respectively. The Dow has gained about 10% year-to-date. In the U.S. equity options market, with one measure of bullish trading near four-year highs, much of the bullish options flow concentrated in high-flying tech names, particularly those exposed to the AI investment theme. "That's kind of the epicenter of it … people chasing tech upside," Greg Boutle, head of U.S. equity & derivative strategy at BNP Paribas, said. The S&P 500's price-to-earnings ratio, based on expected 12-month earnings for its constituents, last stood at around 23 times, according to LSEG Datastream. That level is near its highest in five years and well above its 10-year average of 18.7, although the P/E ratio reached around the 25 level in 1999 and 2000, the data showed. The heavyweight technology sector was trading at 30 times forward earnings estimates, above its long-term average of 21.4. The sector's valuation surged as high as 48 times during the dotcom era. Today's bull market again brings fears about over-exuberance surrounding artificial intelligence may lead to a significant correction in the broader market, some warn. In 1996, "we were all blinded to the reality of what was happening, and some would argue we're in the same situation today," said Malek. Malek said that today he still carries with him the memory of those years and that he tries to remain aware that this time, too, he could be wrong in believing that the stock market's remarkable AI-fueled gains are all justified. "I know I need to keep my pencil sharp," he said. But other investors maintain an optimistic outlook. Goldman Sachs analysts argued that while history suggests that bubbles are driven by exuberance that builds around transformative technology, the current market rally is different because it seems to be driven by "fundamental growth rather than irrational speculation" and AI has been dominated by a few incumbents. Comparisons to 1996 and the dotcom bubble fall short on several fronts, said Art Hogan, market strategist at B. Riley Wealth in Boston. Back in 1996, he was a trader specializing in technology stocks, watching the dotcom boom explode in front of his eyes. "Hundreds of companies that had dreams in place of business models came public and saw their stock prices double or triple overnight," Hogan said. "Today, the companies that are leading this revolution already existed before AI began dominating the market chatter, and had significant businesses and growth. And those valuations today aren't as ridiculous." (Reporting by Chibuike Oguh and Suzanne McGee in New York; Additional reporting by Saqib Iqbal Ahmed, Lewis Krauskopf and Chuck Mikolajczak; editing by Alden Bentley, Megan Davies and Nick Zieminski)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

(Reuters) -Alliance Laundry Systems was valued at nearly $4.83 billion after its shares jumped 11.4% in their New York debut on Thursday, making the commercial laundry machine maker the latest to capitalize on a buoyant listings market. Shares of the Ripon, Wisconsin-based Alliance opened at $24.5 apiece, above the issue price of $22. Alliance and some of its existing shareholders sold 34.1 million shares in an initial public offering on Wednesday, at the top of its target range of $19 to $22 apiece. U.S. IPO activity has picked up after a slowdown earlier this year, with companies moving to tap investor appetite as concerns over President Donald Trump's trade policies ease. Companies such as Swedish fintech firm Klarna and online ticketing marketplace StubHub tested the public markets with their hotly anticipated debuts last month. (Reporting by Anuj T and Pritam Biswas; Editing by Sahal Muhammed)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Marie Mannes and Tim Hepher STOCKHOLM/PARIS (Reuters) -Turkish Airlines could switch a recently announced order for Boeing 737 MAX jets to rival Airbus if talks with engine supplier CFM fail to make progress, the airline's chair Ahmet Bolat said. The unexpected warning comes after the Turkish flag carrier announced a tentative order with Boeing for 150 MAX planes, coinciding with a meeting on September 25 between Turkish President Tayyip Erdogan and his U.S. counterpart Donald Trump, subject to a separate engine deal. Transatlantic venture CFM International, co-owned by GE Aerospace and Safran, is the sole engine supplier for the Boeing 737 MAX and competes with RTX unit Pratt & Whitney for airline contracts on the Airbus A320neo family. DISAGREEMENT ON COSTS  "If CFM comes to feasible economical terms, then we are going to sign with Boeing," Bolat told Reuters in Stockholm late on Wednesday. He added negotiations had made some progress, but disagreements on costs remained. "If CFM continues its stance, we'll change to Airbus. With Airbus, I have choices," Bolat said, referring to the European planemaker's two engine suppliers. CFM, the world's largest engine maker by the number of units sold, said: "As a matter of policy, CFM does not disclose details of contractual negotiations with our customers." Boeing declined to comment. The widely watched deal is part of a major fleet replacement and expansion to around 800 aircraft by 2033, after Turkish Airlines (THY) ordered more than 200 Airbus planes in 2023.  Industry sources said they still expected a deal to be finalised with CFM, given the recent political attention to the order and scarce supplies of competing Airbus jets.  SHARING RISKS A spate of engine shortages and growing maintenance delays has driven up engine parts prices and led to growing discord between suppliers and airlines across the industry.     Airlines globally have voiced frustration over the disruption, including THY, which is facing delays linked to Pratt & Whitney engines on its existing Airbus fleet. Engine makers have argued they need to be rewarded for huge financial risks. At the heart of the THY dispute is who should bear the most risk on the cost of long-term repairs, industry sources said. Jet engines are typically sold at a loss, but manufacturers make money on servicing spread over 20 years. Rather than charge for repairs as they arise, they often strike long-term deals priced by the flight-hour. But a surge in the amount of wear and tear on modern engines has made this riskier for engine makers. THY is holding out for such a deal, sources said. CFM has appeared less willing to grant such deals in recent years, preferring to pass more work to independent shops. But two industry sources said it has lately shown greater flexibility on hourly deals in exchange for higher prices. Company officials told Reuters recently that CFM had never stopped giving long-term hourly deals and there had been no change in its strategy of shifting more work to third parties. THY OPEN TO PLACING ORDER ON DELAYED BOEING 777X On a positive note for Boeing, Bolat said THY was still considering the troubled 777X mini-jumbo, despite recent reports of new delays, and was closely monitoring its development.  The world's largest twin-engined jetliner is now expected to be ready in 2027, some seven years behind its original schedule. Bolat said THY remained in regular contact with Boeing, including discussions concerning the 777X, and was assessing which routes the aircraft would be best suited for. "Once we have the right time, we're going to order some 777X," Bolat said, adding that THY was in no rush, however. (Reporting by Marie Mannes in Stockholm, Tim Hepher in Paris, additional reporting by Joanna Plucinska, Ceyda Caglayan; Editing by Adam Jourdan, Emelia Sithole-Matarise, Rod Nickel)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

(Reuters) -Latin American e-commerce firm MercadoLibre will test the waters for online pharmaceutical sales in Brazil through its newly acquired drugstore, its local head said on Thursday, a first step in entering the country's multi-billion-dollar online medicine market. Uruguay-based MercadoLibre, Latin America's largest company by market cap, already sells medicines online in Mexico, Argentina, Chile and Colombia, but not in Brazil, the firm's largest market. In a call with journalists, executive Fernando Yunes confirmed recent media reports that MercadoLibre had acquired a physical drugstore in Brazil, a requirement under local law for companies selling pharmaceuticals. Yunes said the company does not intend to build a nationwide drugstore chain. Another executive added that the goal is to allow small and medium-sized drugstores to sell in MercadoLibre's e-commerce platform in Brazil, and not to compete directly with pharmaceutical companies. "The pharmaceutical sector is the only one in Brazil that we do not operate in. It's a sector where we see potential for improvement in access," Yunes said. "We want to be a marketplace, we want drugstores selling on MercadoLibre." Next steps will depend on how its first drugstore performs, executives said. MercadoLibre is also talking with Brazilian authorities to update the country's regulation for the pharmaceutical sector, which creates operational challenges, Yunes noted. "Brazilian law was created a long time ago. We believe it needs to be modernized. This will allow pharmacies to have greater access to customers," he added. (Reporting by Michael Susin; Writing by Fernando Cardoso; Editing by Kylie Madry and Natalia Siniawski)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Deena Beasley (Reuters) -Retail pharmacies and prescription drug savings site GoodRx are talking with the Trump administration about joining its TrumpRx website, they told Reuters, suggesting an expansion beyond the early description of it as a link to pharmaceutical companies' direct discounts. Drugmakers, including Pfizer and Amgen, are offering to sell some brand-name medications directly to consumers at the negotiated prices they get from insurers rather than much higher list prices. Some say they will work with TrumpRx, spurred in part by President Donald Trump's threats of steep tariffs on drugmakers that don't cut prices and increase U.S. manufacturing. The site is due to launch next year. At a White House event last week, Trump and health officials described TrumpRx as a way to help consumers access drugs at discounted prices. How much value it represents to consumers is still uncertain. Wendy Barnes, CEO of GoodRx, which connects consumers to drug company coupons and discounts, said the Trump administration understands that "if we include the pharma direct programs, we also have to find a way to convey competitive cash pricing at retail pharmacies." Shares of GoodRx rose 11.5% to $4.89 in afternoon trading on Thursday. The National Community Pharmacists Association and the National Association of Chain Drug Stores, which represent companies like Walgreens and Costco, said they were also talking with administration officials. "As long as drugmakers deliver cost savings for American patients through TrumpRx, how they do so is irrelevant," White House spokesman Kush Desai said in a statement.   CONSUMERS ARE SHOPPING AROUND MORE "This will be like consumers shopping on Amazon and seeing drug prices," said Yunan Ji, assistant professor of strategy at Georgetown's McDonough School of Business. Direct-to-consumer sales would benefit more patients if they accept health insurance, Ji said. Some drugmaker sales portals incorporate insurance benefits, while others are cash-pay only. Many insured consumers shopping for the lowest price have already figured out how to make the most of discount programs. Jacquie Persson, a graphic designer in Cedar Rapids, Iowa, said a drugmaker-issued discount card cut her co-pay for an expensive migraine drug to $5 from about $100. "I'm really lucky to have good insurance through my employer. My husband's insurance isn't as good," she said. "I am a chronically ill individual … it is a stressful thing in the back of my mind to push through, keep working and not lose this good insurance." About 92% of Americans have health insurance, typically through their employer or government plans like Medicare, that limits out-of-pocket prescription costs. But as healthcare costs have risen, an increasing number of plans require patients to spend thousands of dollars a year before coverage kicks in. Some plans do not cover certain medications, such as weight-loss drugs, or charge co-pays that exceed the cash price of a prescription. ING Group estimated that if all branded medications were available directly from manufacturers, consumers could save $1.9 billion out of a $590 billion U.S. pharmaceutical market.   PHARMACIES WANT LOWER PRICES TOO Douglas Hoey, CEO of the National Community Pharmacists Association, said that any direct-to-consumer prices drugmakers offer through TrumpRx should also be available at pharmacies. "We don't feel like patients should have to chase a discount and have their medications split up," Hoey said. "We don't think that is good care." Chris Krese, head of congressional relations at the National Association of Chain Drug Stores, said "the role of local pharmacies and American pharmacists is essential" to keep track of things like drug interactions and overlaps. His group would like the drugmaker direct-to-consumer sites to provide discount vouchers that could be applied at the pharmacy counter. The manufacturer-run sites could be used by Americans who are uninsured but can afford to pay cash to fill a prescription for a drug. For people who can't afford to pay, drugmakers say they will continue to offer assistance plans that supply discounted or free medication to millions of eligible patients. "These are still brand-name drugs at very high prices that the vast majority of people can't afford," said Dr. Aaron Kesselheim, professor of medicine at Harvard Medical School and Brigham and Women’s Hospital.  (Reporting By Deena Beasley; additional reporting by Jarrett Renshaw in Washington; editing by Caroline Humer, Bill Berkrot and Alan Barona)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)