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Shares of Japan’s Eisai swamped with sell orders after ending Alzheimer trials

The logo of Eisai Co Ltd is displayed at the company headquarters in Tokyo
The logo of Eisai Co Ltd is displayed at the company headquarters in Tokyo, Japan, March 8, 2018. REUTERS/Issei Kato

March 22, 2019

TOKYO (Reuters) – Eisai Co Ltd’s shares were untraded on Friday, hit with a glut of sell orders after the Japanese drugmaker and its partner Biogen Inc said they are ending two drug trials of their experimental Alzheimer’s disease drug aducanumab.

The decision, which wiped $18 billion off the value on Biogen on Thursday, marks a major setback in the quest to find a treatment for the mind-wasting disease and came after experts determined the trials had little hope of succeeding.

Eisai shares were hit with sell orders at 7,565 yen, down nearly 17 percent from Wednesday’s close of 9,065 yen, the most it could fall on Friday under exchange rules. Japanese markets were closed for a national holiday on Thursday. Sell orders dwarfed buy orders by about 30 times.

The setback comes as the two drugmakers face scepticism from investors over their experimental Alzheimer’s drug, BAN2401, for which they reported promising but confusing 18-month results last July.

Dozens of experimental drugs have failed in the race to treat Alzheimer’s, the most common form of dementia. Thursday’s announcement pushed down Biogen’s shares nearly 30 percent, its largest drop since February 2005.

(Reporting by Sam Nussey and Chang-Ran Kim; Editing by David Dolan)

Source: OANN

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Erdogan sees win in local poll, but loses Turkish capital

Turkish President Recep Tayyip Erdogan has declared victory in Sunday's local elections but the opposition's win in the capital has dealt a significant blow to his party's dominance.

Unofficial results published in state media show the secular Republican People's Party or CHP's candidate won the metropolitan mayor seat of Ankara. The capital city was held by Erdogan's Justice and Development Party, or AKP, and its Islamic-oriented predecessor for 25 years.

Both the CHP and AKP candidates declared victory in the race for mayor in Istanbul, Turkey's largest city, though vote count is still underway and unofficial results too close to call.

The AKP made gains in southeastern provinces that were strongholds for a pro-Kurdish party.

Source: Fox News World

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Meghan McCain accuses Jewish artist of anti-Semitism after mocking her comments on Omar

Meghan McCain has accused a Jewish cartoonist of anti-Semitism after he drew an unflattering cartoon of her crying in response to Rep. Ilhan Omar's controversial comments about Israel.

"This is one of the most anti-Semitic things I’ve ever seen. Also, this reveals so much more about you than it does me," McCain tweeted in response to a tweet Valley made featuring the cartoon.

Eli Valley's cartoon featured McCain crying while wearing a cross and surrounded by Jewish artifacts.

Valley responded to “View” co-host's tweet by tweeting another cartoon featuring Omar and asking her to share it.

REP. OMAR SLAMS FORMER PRESIDENT OBAMA'S 'HOPE AND CHANGE'

Thursday on "The View," McCain became emotional while talking about Omar's comments regarding Israel, which critics have deemed anti-Semitic.

"Just because I don’t technically have Jewish family that are related to me doesn’t mean that I don’t take this seriously and it is very dangerous, very dangerous and I think we collectively as Americans on both sides – what Ilhan Omar is saying is very scary to me," McCain said with her voice cracking.

On Friday, Omar, D-Minn., retweeted a response to McCain's comments attacking her late father, Arizona Sen. John McCain.

Meghan McCain responded, saying the retweet was beneath her.
".@IlhanMN retweeting trash like this is beneath a sitting member of Congress, as is her blatantly anti-Semitic rhetoric. The Democratic Party looking the other way only helps Trump’s re-election efforts in 2020...," McCain tweeted.

Thursday Congress voted on a resolution condemning hate speech.  The resolution was originally intended to condemn anti-Semitism and was thought to be aimed at Omar.

MEGHAN McCAIN SLAMS REP. ILHAN OMAR'S 'BLATANTLY ANTI-SEMITIC RHETORIC' AMID BITTER TWITTER SPAT

Democrats ultimately included other forms of hate including Islamophobia, deciding not to single out Omar.

“Today is historic on many fronts. It’s the first time we have voted on a resolution condemning Anti-Muslim bigotry in our nation’s history. Anti-Muslim crimes have increased 99 percent from 2014-2016 and are still on the rise,” Omar, Rep. Rashida Tlaib, D-Mich. and Rep. Andre Carson, D-Ind. said in a joint statement. “We are tremendously proud to be part of a body that has put forth a condemnation of all forms of bigotry including anti-Semitism, racism, and white supremacy.”

Source: Fox News Politics

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Britain will not use high-risk vendors in critical parts of 5G networks: minister

FILE PHOTO: Britain's Minister for the Cabinet Office David Lidington speaks at the the British Chamber of Commerce annual conference in London
FILE PHOTO: Britain's Minister for the Cabinet Office David Lidington speaks at the the British Chamber of Commerce annual conference in London, Britain, March 28, 2019. REUTERS/Peter Nicholls/File Photo

April 25, 2019

GLASGOW, Scotland (Reuters) – Britain will not consider high risk equipment vendors in security critical parts of its next-generation 5G networks, Cabinet Office minister David Lidington said on Thursday.

Sources told Reuters on Wednesday Britain’s National Security Council had decided this week to bar China’s Huawei Technologies from all core parts of the 5G network and restrict its access to non-core parts.

Speaking at a cyber security conference in Glasgow, Scotland, Lidington said Britain had rigorous procedures to manage risk in its telecoms infrastructure and the government’s decision was based on “evidence and expertise not supposition or speculation.”

“We will not countenance high risk vendors in those parts of the UK’s 5G network that perform critical security functions,” he said.

“The government approach is not about one company or even one country, it is about ensuring stronger cyber security across telecoms, greater resilience in telecoms networks and more diversity in the supply chain.”

(Reporting by Jack Stubbs and Michael Holden; Editing by Guy Faulconbridge)

Source: OANN

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Spain’s socialists lead with 31.5 percent ahead of April 28 election: poll

A man walks past an electoral poster of Spain's Socialist (PSOE) leader and current PM Sanchez outside the PSOE headquarters in Madrid
FILE PHOTO - A man walks past an electoral poster of Spain's Socialist (PSOE) leader and current Prime Minister Pedro Sanchez outside the PSOE headquarters in Madrid, Spain, April 12, 2019. REUTERS/Susana Vera

April 21, 2019

MADRID (Reuters) – Spain’s Socialists led in a poll published on Monday in newspaper ABC with 31.5 percent of votes, equivalent to between 134 and 139 seats in the 350-seat parliament, but short of a majority ahead of a general election on April 28.

A coalition of three right-wing parties – People’s Party (PP), Ciudadanos and far-right Vox – would get 45.4 percent of votes, equivalent to between 153 and 162 seats, also be short of the 176 seats needed to secure a parliamentary majority, according to the poll conducted by GAD3.

Socialist Pedro Sanchez could be re-elected as prime minister if he manages to form a parliamentary majority with the support of at least two of an array of parties – far-left Podemos and a Catalan pro-independence group – that backed him last June when he won a vote of confidence against PP’s government at the time.

(Reporting by Joan Faus; Editing by Susan Thomas)

Source: OANN

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Study: Electric Cars Emit More CO2 Than Diesel Vehicles

Electric cars in Germany are emitting more CO2 than diesel vehicles, according to a German study.

By including the CO2 emissions from the production of batteries, the study by the Ifo Institute in Munich found that electric vehicles attribute 11% to 28% more CO2 than their diesel counterparts.

“Mining and processing the lithium, cobalt and manganese used for batteries consume a great deal of energy,” reported the Brussels Times. “A Tesla Model 3 battery, for example, represents between 11 and 15 tonnes of CO2.”

“Given a lifetime of 10 years and an annual travel distance of 15,000 kilometres, this translates into 73 to 98 grams of CO2 per kilometre, scientists Christoph Buchal, Hans-Dieter Karl and Hans-Werner Sinn noted in their study.”

Additionally, the study pointed out that it’s not just the production phase; charging the batteries of electric cars also produces more CO2 due to the increased production of energy required for charging.

That led to the study’s authors criticizing EU regulations that claim fleet emissions for electric vehicles start out at “zero” CO2.

The authors believe that methane-powered gasoline engines are worth looking into instead.



What can we learn from the ancient Greeks that we can apply today?

Source: InfoWars

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SEC delays disputed plan to probe exchange pricing conflicts

FILE PHOTO: To match Special Report SEC/INVESTIGATIONS
FILE PHOTO: The U.S. Securities and Exchange Commission logo adorns an office door at the SEC headquarters in Washington, June 24, 2011. REUTERS/Jonathan Ernst/File Photo

March 29, 2019

By John McCrank

NEW YORK (Reuters) – The U.S. Securities and Exchange Commission on Thursday delayed a controversial plan aimed at evaluating how stock exchange fees and incentives affect how brokers trade, while the exchanges sue the regulator in an attempt to kill the experiment.

The SEC approved its so-called Transaction Fee Pilot in December, aimed at testing how lucrative rebate payments from exchanges to brokers for stock orders that others can trade against influences brokers’ behavior.

But Nasdaq Inc, Cboe Global Markets and Intercontinental Exchange Inc’s NYSE, which together own 12 of the 13 U.S. stock exchanges, all filed lawsuits against the SEC in February saying the plan was an exercise in government price-setting and would put controls on competition.

“Without addressing the merits of petitioners’ challenges to the rule or the pilot program, the Commission has determined to exercise that discretion to grant a stay, in part. Pending a decision by the court of appeals,” the SEC said as it put the plan on hold on Thursday.

The big exchange operators had said the one-to-two-year pilot program would hurt the companies whose stocks would not be eligible to receive rebates for liquidity-adding stock orders.

“The Commission’s action is a positive development for publicly-traded companies and Main Street investors, as it recognizes the arbitrary nature of the program and the complexity of its implementation,” Nasdaq spokesman Joseph Christinat said following the SEC’s announcement.

Cboe also said it was “pleased” with the SEC’s decision.

The SEC, in part, aimed to gather data from the experiment that could show if the rebates, which added up to around $2.5 billion last year, create conflicts of interest by giving incentives to brokers to send customer orders to the exchanges that pay the biggest rebates.

Those customers might get better results elsewhere, say critics of the rebate regime, which include some of the world’s largest asset managers.

The exchanges say rebates help attract liquidity, while also compensating brokers, especially market makers, for taking the risk of providing two-sided bid and ask prices for others to trade against.

The pilot program was recommended by a SEC-appointed committee of market experts, as well as by the U.S. Treasury in a report in late 2017.

Because the SEC granted only a partial stay of the pilot, the exchanges will still have to begin gathering data on broker order routing behavior to provide to the regulator if the pilot goes ahead.

(Reporting by John McCrank; Editing by Kim Coghill)

Source: OANN

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FILE PHOTO - A worker sits on a ship carrying containers at Mundra Port in the western Indian state of Gujarat
FILE PHOTO: A worker sits on a ship carrying containers at Mundra Port in the western Indian state of Gujarat April 1, 2014. REUTERS/Amit Dave/File Photo

April 26, 2019

(Reuters) – India has once again delayed the implementation of higher tariffs on some goods imported from the United States to May 15, a government official said on Friday.

The new tariff structure was to come into force from May 2, the spokeswoman said without citing reasons for the delay.

Angered by Washington’s refusal to exempt it from new steel and aluminum tariffs, New Delhi decided in June last year to raise the import tax from Aug. 4 on some U.S. products including almonds, walnuts and apples.

But since then, New Delhi has repeatedly delayed the implementation of the new tariff.

Trade friction between India and the U.S. has escalated after U.S. President Donald Trump announced plans earlier this year to end preferential trade treatment for India that allows duty-free entry for up to $5.6 billion worth of its exports to the United States.

In a further blow, U.S. on Monday demanded buyers of Iranian oil stop purchases by May or face sanctions, ending six months of waivers which allowed Iran’s eight biggest buyers including India to continue importing limited volumes.

(Reporting by Manoj Kumar in New Delhi and Kanishka Singh in Bengaluru; Editing by Anil D’Silva and Raissa Kasolowsky)

Source: OANN

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One of Joe Biden’s newly-hired senior advisers has seemingly had a very recent change of heart.

Symone Sanders, a prominent Democratic strategist and Sen. Bernie Sanders, I-Vt., staffer in 2016, was announced as one of the big-name members of Team Biden on Thursday.

But Sanders, who has also served as a CNN contributor, is seen in resurfaced footage from November 2016 expressing her opposition to a white person leading her party after Donald Trump’s election.

“In my opinion, we don’t need white people leading the Democratic party right now,” Sanders told host Brianna Keilar during a discussion on Howard Dean potentially becoming DNC chairman.

BIDEN HIRES FORMER BERNIE SANDERS’ SPOKESPERSON AS SENIOR ADVISER

“The Democratic party is diverse, and it should be reflected as so in leadership and throughout the staff, at the highest levels. From the vice chairs to the secretaries all the way down to the people working in the offices at the DNC,” she said.

Sanders wrapped up her remarks by saying: “I want to hear more from everybody. I want to hear from the millennials and the brown folks.”

Footage of the interview was resurfaced by RealClearPolitics.

After news of her hiring broke on Thursday, Sanders backed her new boss on Twitter.

TRUMP ASSESSES 2020 DEMS; TAKES SWIPES AT BIDEN, SANDERS; DISMISSES HARRIS, O’ROURKE; SAYS HE’S ROOTING FOR BUTTIGIEG

“@JoeBiden & @DrBiden are a class act. Over the course of this campaign, Vice President Biden is going to make his case to the American ppl. He won’t always be perfect, but I believe he will get it right,” she wrote.

The hiring of Sanders has been viewed as another indication of the expected tough fight that Biden and Sanders are in for as the two frontrunners battle a deep Democratic field.

While Sanders himself didn’t torch Biden as he jumped into the race, it’s clear that many of his progressive supporters view the former vice president as a threat.

Biden’s entry into the race – at least in the early going – sets up a battle between himself and Sanders, who thanks to his fierce fight with eventual nominee Hillary Clinton for the 2016 Democratic nomination, enjoys name ID on the level of the former vice president.

BIDEN VOWS THAT ‘AMERICA IS COMING BACK,’ SPARKING ‘MAGA’ COMPARISONS

Justice Democrats — who also called Biden “out-of-touch” – is an increasingly influential group among the left of the party. They’ve championed progressive Rep. Alexandria Ocasio-Cortez of New York as well as Sanders. The group was founded by members of Sanders 2016 presidential campaign.

Biden has pushed back against the perception that he’s a moderate in a party that’s increasingly moving to the left. Earlier this month he described himself as an “Obama-Biden Democrat.”

And Biden said he’d stack his record against “anybody who has run or who is running now or who will run.”

Former Democratic National Committee chair Donna Brazile – a Fox News contributor – highlighted that “Joe Biden can occupy his own lane in large part because he’s earned it. He’s earned the right to call himself whatever.”

CLICK HERE TO GET THE FOX NEWS APP

But she emphasized that “elections are not about the past, they’re about the future…I do believe he has the right ingredients. The question is can he find enough people to help him stir the pot.”

Fox News Andrew O’Reilly contributed to this report.

Source: Fox News Politics

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Baltimore Mayor Catherine Pugh, who is facing increased calls for her immediate resignation, remains in poor health and is not “lucid” enough to decide whether to step down, her attorney told reporters late Thursday.

Steve Silverman, speaking outside one of Pugh’s residences which was raided by the FBI and IRS earlier in the day, said the embattled city leader could make a decision as early as next week.

“She is leaning toward making the best decision in the best interest in the citizens of Baltimore City,” he said, adding that Pugh has “several options” to consider.

“She just needs to be physically and mentally sound and lucid enough to make appropriate decisions.”

BALTIMORE MAYOR CATHERINE PUGH, ON LEAVE AMID BOOK PROBE, HAS HOMES AND CITY HALL OFFICE RAIDED BY FEDS

Silverman said Pugh met with a doctor at home Thursday and plans to do so again Friday, the Baltimore Sun reported.

In the latest image-tarnishing scandal for struggling Baltimore, the first-term Democratic mayor faces accusations that she used children’s book deals to cover up kickbacks for favorable treatment as a state lawmaker and city leader that earned her roughly $800,000 over several years.

BALTIMORE’S ACTING MAYOR SAYS HE ‘WOULD HATE TO SEE’ EMBATTLED MAYOR RETURN AFTER BOOK SCANDALS

As a state senator, 69-year-old Pugh sold $500,000 worth of her self-published “Healthy Holly” illustrated paperbacks to the University of Maryland Medical System, a major state employer whose board she sat on for nearly 20 years.

Baltimore police officers stand outside the house of Baltimore Mayor Catherine Pugh in Baltimore, MD., Thursday, April 25, 2019. Agents with the FBI and IRS are gathering evidence inside the two homes of Pugh and also in City Hall. (AP Photo/Jose Luis Magana)

Baltimore police officers stand outside the house of Baltimore Mayor Catherine Pugh in Baltimore, MD., Thursday, April 25, 2019. Agents with the FBI and IRS are gathering evidence inside the two homes of Pugh and also in City Hall. (AP Photo/Jose Luis Magana)

UMMS reportedly paid Pugh for 100,000 copies of her books between 2011 and 2018 with the stated intention of distributing the books to schools and day care centers. But some 50,000 copies remain unaccounted for and officials are probing if they were even printed.

Pugh also made $300,000 in bulk sales to other customers including health carriers that did business with the city of Baltimore.

BALTIMORE CITY COUNCIL CALLS ON EMBATTLED MAYOR CATHERINE PUGH TO RESIGN IMMEDIATELY

The politically isolated Pugh slipped out of sight on April 1 after a hastily organized press conference where she called her no-contract book deals a “regrettable mistake.” That same day, Maryland’s governor called on the state prosecutor to investigate allegations of “self-dealing.”

Pugh took an indefinite leave of absence, citing her health deteriorating intensely after a bout with pneumonia.

Federal agents arrive at the Maryland Center for Adult Training in Baltimore. MD, Thursday, April 25, 2019. Agents with the FBI and IRS are gathering evidence inside the two homes of Baltimore Mayor Catherine Pugh and in City Hall, as well as the office of her lawyer and the home of a top aide.

Federal agents arrive at the Maryland Center for Adult Training in Baltimore. MD, Thursday, April 25, 2019. Agents with the FBI and IRS are gathering evidence inside the two homes of Baltimore Mayor Catherine Pugh and in City Hall, as well as the office of her lawyer and the home of a top aide. (Loyd Fox/Baltimore Sun via AP)

On Thursday morning, agents with the FBI and IRS searched her two Baltimore homes, her City Hall offices, and a nonprofit organization she once led. The home of at least one of Pugh’s aides was also scoured.

Silverman said federal agents also served a subpoena at his law firm, retrieving Pugh’s original financial records. They did not seek any attorney-client privileged communications, he said.

Pugh’s attorney said she was “emotionally extremely distraught” following the searches by FBI and IRS agents.

“There was nothing incriminating that came out of her home,” Silverman said.

UMMS spokesman Michael Schwartzberg told reporters that the medical system received a grand jury witness subpoena seeking documents and information related to Pugh.

Other probes against Pugh include a review by the city ethics board and the Maryland Insurance Administration.

BALTIMORE MAYOR’S $500G DEAL FOR ‘HEALTHY HOLLY’ CHILDREN’S BOOKS DRAWS SCRUTINY

In recent weeks, the calls for Pugh’s resignation have intensified with the strongest voice coming from Republican Gov. Larry Hogan, who did not mince words after Thursday’s early morning raids.

“Now more than ever, Baltimore City needs strong and responsible leadership. Mayor Pugh has lost the public trust,” he said. “She is clearly not fit to lead. For the good of the city, Mayor Pugh must resign.”

Federal Bureau of Investigation, and Internal Revenue Service agents search the home of Baltimore Mayor Catherine Pugh in Baltimore, MD., Thursday, April 25, 2019. Agents with the FBI and IRS are gathering evidence inside the two homes of Baltimore Mayor Catherine Pugh and in City Hall.

Federal Bureau of Investigation, and Internal Revenue Service agents search the home of Baltimore Mayor Catherine Pugh in Baltimore, MD., Thursday, April 25, 2019. Agents with the FBI and IRS are gathering evidence inside the two homes of Baltimore Mayor Catherine Pugh and in City Hall. (Jerry Jackson/Baltimore Sun via AP)

Many of her fellow Democrats, including those on Baltimore’s demoralized City Council and state lawmakers, are also insisting that Pugh put the citizens’ interests above any attempt to preserve her political career.

City Council member Brandon Scott called the Thursday raids “an embarrassment to the city.”

However, only a conviction can trigger a mayor’s removal from office, according to the city solicitor. Baltimore’s mayor-friendly City Charter currently provides no options for ousting its executive.

Six of Pugh’s staffers joined her on paid leave earlier this month; three of them were fired this week by the acting mayor.

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Pugh came to office in late 2016 after edging out ex-Mayor Sheila Dixon, who had spent much of her tenure fighting corruption charges before being forced to depart office in 2010 as part of a plea deal connected to the misappropriation of about $500 in gift cards meant for needy families.

She would certainly face a bruising 2020 Democratic primary if she were to return and run for reelection. Veteran City Council leader Bernard “Jack” Young, who is serving as acting mayor, said as she went on leave that he would merely be a placeholder. But this week, before the raids, he said “it could be devastating for her” if she tried to return.

The Associated Press contributed to this report.

Source: Fox News National

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FILE PHOTO: Cases of Pepsi are shown for sale at a store in Carlsbad
FILE PHOTO: Cases of Pepsi are shown for sale at a store in Carlsbad, California, U.S., April 22, 2017. REUTERS/Mike Blake/File Photo

April 26, 2019

By Amit Dave and Mayank Bhardwaj

AHMEDABAD/NEW DELHI (Reuters) – PepsiCo Inc has sued four Indian farmers for cultivating a potato variety that the snack food and drinks maker claims infringes its patent, the company and the growers said on Friday.

Pepsi has sued the farmers for cultivating the FC5 potato variety, exclusively grown for its popular Lay’s potato chips. The FC5 variety has a lower moisture content required to make snacks such as potato chips.

PepsiCo is seeking more than 10 million rupees ($142,840.82) each for alleged patent infringement.

The farmers grow potatoes in the western state of Gujarat, a leading producer of India’s most consumed vegetable.

“We have been growing potatoes for a long time and we didn’t face this problem ever, as we’ve mostly been using the seeds saved from one harvest to plant the next year’s crop,” said Bipin Patel, one of the four farmers sued by Pepsi.

Patel did not say how he came by the PepsiCo variety.

A court in Ahmedabad, the business hub of Gujarat, on Friday agreed to hear the case on June 12, said Anand Yagnik, the lawyer for the farmers.

“In this instance, we took judicial recourse against people who were illegally dealing in our registered variety,” A PepsiCo India spokesman said. “This was done to protect our rights and safeguard the larger interest of farmers that are engaged with us and who are using and benefiting from seeds of our registered variety.”

PepsiCo, which set up its first potato chips plant in India in 1989, supplies the FC5 potato variety to a group of farmers who in turn sell their produce to the company at a fixed price.

The All India Kisan Sabha, or All India Farmers’ Forum, has asked the Indian government to protect the farmers.

The farmers’ forum has also called for a boycott of PepsiCo’s Lay’s chips and the company’s other products.

The Ministry of Agriculture & Farmers’ Welfare did not immediately respond to an email seeking comment.

PepsiCo is the second major U.S. company in India to face issues over patent infringement.

Stung by a long-standing intellectual property dispute, seed maker Monsanto, which is now owned by German drugmaker Bayer AG, withdrew from some businesses in India over a cotton-seed dispute with farmers, Reuters reported in 2017. (reut.rs/2ncBknn)

(Reporting by Amit Dave in AHMEDABAD and Mayank Bhardwaj in NEW DELHI; Editing by Martin Howell and Louise Heavens)

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FILE PHOTO: The Archer Daniels Midland Co (ADM) logo is displayed on a screen on the floor of the NYSE in New York
FILE PHOTO: The Archer Daniels Midland Co (ADM) logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 3, 2018. REUTERS/Brendan McDermid/File Photo

April 26, 2019

By P.J. Huffstutter and Shradha Singh

CHICAGO/BENGALURU (Reuters) – Archer Daniels Midland Co said on Friday it was considering spinning off its ethanol business after slim biofuel margins and Midwestern floods slammed the U.S. grains merchant’s profit, which tumbled 41 percent in the first quarter.

ADM said it was creating an ethanol subsidiary, which will include dry mills in Columbus, Nebraska; Cedar Rapids, Iowa; and Peoria, Illinois.

The ethanol subsidiary will report as an independent segment, the company said, allowing options “which may include, but are not limited to, a potential spin-off of the business to existing ADM shareholders.”

Results were hit by the “bomb cyclone” blizzards that devastated the Midwest and Great Plains this year, causing massive flooding across Nebraska, Iowa and Missouri, washing out rail lines and wreaking havoc in the moving and processing of corn, soybeans and wheat. One-sixth of U.S. ethanol production was halted.

In March, ADM warned Wall Street that flooding and severe winter weather in the U.S. Midwest would reduce its first-quarter operating profit by $50 million to $60 million.

“The first quarter proved more challenging than initially expected,” said Chairman and Chief Executive Officer Juan Luciano, with earnings down in its starches, sweeteners and bioproducts unit. Luciano said impacts of the severe weather ultimately “were on the high side of our initial estimates”.

Ongoing problems in the ethanol industry added to the problems and “limited margins and opportunities” for ADM, Luciano said.

The ethanol industry has been in the midst of a historic downswing due to the U.S.-China trade war, excess domestic supply and weak margins.

ADM, which had been an ethanol pioneer, signaled to Wall Street in 2016 that it was hunting for options and considering sales of its U.S. dry ethanol mills. Luciano told Reuters this year that offers ADM had received for the mills were too low.

In addition, ADM said it planned to repurpose its corn wet mill in Marshall, Minnesota, to produce higher volumes of food and industrial-grade starches.

Other major traders are alsy trying to distance themselves from struggling ethanol businesses. Louis Dreyfus Company BV spun off its Brazilian sugar and ethanol business Biosev in 2013. Rival Bunge sold its sugar book and has sought a buyer for its Brazilian mills since 2013.

ADM, which makes money trading, processing and transporting crops, such as corn, soybeans and wheat, has been looking to strengthen its core business. Last month it said it would seek voluntary early retirements of some North American employees and cut jobs as part of a restructuring effort.

The company expects to lower 2019 capital spending by 10 percent to between $800 million and $900 million.

Net earnings attributable to the company fell to $233 million, or 41 cents per share, in the three months ended March 31, from $393 million, or 70 cents per share, a year earlier.

Revenue fell to $15.30 billion from $15.53 billion. On an adjusted basis, the company earned 46 cents per share, while analysts on average had estimated 60 cents, according to IBES data from Refinitiv.

(Reporting by Shradha Singh in Bengaluru; Editing by Shounak Dasgupta, Chizu Nomiyama and David Gregorio)

Source: OANN

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