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Ford increases profit forecast for 2026 in spite of nagging aluminum costs
Ford Motor raised its annual guidance by $500 million on Wednesday, thanks to significant tariff refunds. However, it said it still faced rising material costs as it worked to source aluminum for the?lucrative F150 pickup trucks. Ford Motor Company received $1.3 billion of relief from the U.S. Supreme Court's February ruling that invalidated some Trump Administration tariffs. Ford booked a gain in the first quarter on the expected refund, which boosted its bottom line. However, the company acknowledged that it is uncertain how quickly the government will reimburse them. Ford's guidance was raised by less than the refund amount, as the company is now facing higher-than expected tariff costs. These additional expenses are mainly on raw materials, such as aluminum, since Ford's U.S. major supplier Novelis suffered two large fires by 2025. The automaker said that production at the affected area of the New York factory is expected to resume in May or September this year. Novelis expects that production will resume in the second quarter. Ford increased its forecasted earnings before interest and taxes for the entire year from $8 billion to $10billion to $8.5billion to $10.5billion. After-market trading saw its shares drop by less than 1%. The automaker declined to reveal its total tariff cost, saying that it would only be liable for a net of $1 billion. Ford, based in Michigan, reported adjusted earnings per share (EPS) of 66 cents during the first quarter. This was a far greater result than analysts expected, who had predicted 19 cents. The tariff refund helped to boost this figure. Ford's adjusted earnings were $3.5 billion, while revenue reached $43.3 billion. Ford reported a quarterly net profit of $2.5 Billion. F-150 Production Estimated to Have Fallen According to CatalystIQ data, the inventory of the F-150 fell 38% from April of last year. This was largely due to the Novelis Fires. Ford's F-150 is the top-selling vehicle in America and has been for over 40 years. It is also a major source of profit for Ford. Ford's financial health is at risk if its production is disrupted. According to JPMorgan analyst Ryan Brinkman citing data by?S&P Global Mobility, the F-Series production is estimated to have dropped 12% over the past year in the first three months as of mid-April. This was a greater drop than anticipated. Brinkman, in an analyst note, said that Ford may have a harder time recovering than expected from the Novelis Fire. Ford's total vehicle sale decreased by 9% in the first three months of this year, and the decline was largely due to a decrease in demand for hybrid and electric vehicles. General Motors, a cross-town competitor, reported on Tuesday a 22% increase in its first-quarter profit. It also raised its earnings forecast for the full year. This was boosted by an optimistic $500 million tariff refund and a robust U.S. auto market. Ford's shares have risen by about 20% in the past year, while GM has risen by more than 60%.
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Tinubu, Nigeria's Tinubu, nominates a new oil regulator as the second leadership change within four months
The presidency announced on Tuesday that President Bola Tinubu has nominated Rabiu Abdullahi as the new chief executive officer of the Nigerian Midstream & 'Downstream Petroleum Regulatory Agency (NMDPRA). This is the second 'leadership -change' at the petroleum regulator within the last four months. Umar replaces Saidu Mohammed, who was appointed in December, after their predecessors quit abruptly, amid a high-stakes conflict between one agency, and Africa's wealthiest man,?Aliko Daniel. The nomination of Wednesday comes at a time when Nigeria is grappling with increasing domestic energy prices, partly due to higher global oil costs following the escalation in 'conflict' involving Iran. This has increased concerns about supply disruptions' and volatility on international energy markets. The decision was taken in the public's interest to improve the regulatory effectiveness of the downstream and midstream petroleum sectors. Until the Senate confirms the NMDPRA, the most senior official will be in a?acting?position. Umar has over 25 years of experience in the energy, manufacturing and infrastructure industries. He has worked for Dangote Cement in Nigeria, the largest cement producer. He held senior roles, including operational management, large-scale projects, and project delivery. The NMDPRA, established in '2021 under a new law, regulates Nigeria's'midstream and downstream' petroleum operations. This is a crucial segment of Africa's biggest oil-producing country. (Reporting and Writing by Chijioke Ahuocha, Nick Zieminski and Camillus Eboh)
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Wafa reports that a Palestinian teenager was killed in an Israeli raid on the West Bank.
Wafa, the official Palestinian news agency, reported that a?Palestinian teenager was killed?during a military raid by Israel in?the West 'Bank?occupied on Wednesday. The Palestinian Health Ministry said that the teenager is 16 years old. The Israeli military confirmed that it was investigating the report. Wafa reported that the boy was 'killed by soldiers' gunfire during a raid in the Palestinian city Hebron. The Israeli military had earlier claimed that two Palestinians had attacked and injured?two soldiers near Ramallah, in the area of Silwad. The soldiers opened up fire and killed one of the attackers, while apprehending the second. Was not able to confirm the details of any incident immediately. Palestinian officials reported that an Israeli strike killed a medic in?northern Gaza. The Israeli military did not comment immediately. The Israeli military?said that its forces shot down a militant later on Wednesday in southern Gaza. Reporting by Ali Sawafta from ramallah, and Nidal Al-Mughrabi from Cairo. Editing by David Gregorio.
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The US FDA has concluded that domestic infant formula is safe.
The United States Food and Drug Administration confirmed on Wednesday that infant formula samples tested in the U.S. contained very low levels contaminants. This confirms the safety of the supply. The agency tested over 300 samples of 16 infant formulas sold across the country, looking for heavy metals like arsenic and cadmium as well as synthetic chemicals, pesticides and phthalates. The agency reported that the majority of samples had very low or undetectable levels of contaminants. The FDA used the drinking water limits set by the Environmental Protection Agency to evaluate infant formula because unlike the EU, it does not have heavy metal standards. The amount of contamination was so small that it is encouraging for families and physicians to know that infant formulas seem very safe, said Valeria COHRAN, professor of pediatrics at Northwestern University Feinberg Medical School. TESTING IS CONTINUING Robert F. Kennedy Jr., Health Secretary of the United States, has been promoting the reduction of food chemicals. He also launched an infant formula nutrition review in 2013. Kennedy will host an industry roundtable in May. The FDA stated that although overall contamination levels were low, some samples required additional testing. The FDA tested powders as well as liquids that are ready to feed and concentrated liquids. The agency intends to continue testing. Katarzyna?Kordas, associate professor, epidemiology and environment health at the University at Buffalo, said that the U.S. diet guidelines do not take into account the risk of exposure to contaminants. This highlights the need for more research. Mercury, lead and pesticides were not detectable in 95% samples. Lead was detected in only 20% of samples. The majority of PFAS compounds also were not detected. The agency also tested some?of human?milk?samples and found that the majority contained at least one detectable contamination, while only 15% did not. Even small amounts of contaminants may be present in food, such as infant formula and breast milk. They can also enter the production process through exposure to environmental factors. Abbott, maker of Similac said on Wednesday that producing infant formula in the U.S. at scale is a matter for national security. These results confirm the safety of the domestic supply. Laura Modi is the CEO of Bobbie baby formula. She also stated that Bobbie will work with FDA to set federal standards on heavy metals found in infant formula. (Reporting and editing by Maju Samuel in Bengaluru, Sahal Muhammed and Sneha S. K.)
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Gold continues to fall after US Fed maintains rate unchanged
Gold extended its losses on Wednesday, falling?to?a?one-month low as the U.S. Federal Reserve left rates unchanged as anticipated and traders were worried about inflation resulting from the Middle East war. By 2:14 pm EDT (1814 GMT), spot gold had fallen 1.4% to $4,528.17 an ounce, its lowest price since late March. U.S. Gold Futures?Settled 1% Lower at $4,561.50. The Fed kept interest rates unchanged, but its most divided decision in over 20 years?noted growing concerns about inflation? in a statement of policy that attracted three dissenting officials who did not?feel? the U.S. Central Bank should communicate an emphasis on lowering borrowing costs. Tai Wong, an independent metals trader, said that the three dissenters who wanted to remove the easing bias from the statement put gold under pressure. After the announcement, traders stuck with their bets that the Fed would not reduce interest rates in this year or for a long time to come. After the decision, traders remained steadfast in their bets that the?Fed would not cut interest rates this year or well into next. "Only Trump or Iran can save the markets. But, both sides aren't getting closer to a agreement - and oil is reflecting this." Fawad Rasaqzada is a market analyst for City Index and FOREX.com. He said that the outlook for gold does not look so good right now. Donald Trump and U.S. oil companies discussed ways to minimize the impact of an upcoming months-long 'U.S. A White House official revealed on Wednesday that U.S. Oil companies were discussing a possible blockade of the?Iran ports, while President Trump urged Tehran sign a deal. Tehran has warned that it will take "unprecedented" military action against the continued U.S. blocking. The 'World Gold Council' said that global gold demand grew 2% on an annual basis in the first quarter 2026, as the surge in gold bar and coin purchases, as well as the 3% increase in central bank buying, more than offset a 23% drop in jewellery demand. Silver spot fell by 2.7% at $71.08, while platinum dropped 3% at $1,881.21 and palladium fell 0.4% to $1,454.52. (Reporting and editing by Ronojoy Mazumdar in Bengaluru, Aurora Ellis, Sahal Muhammed).
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Entergy's capital expenditure plan increases by 33% for expanded Meta data center
Entergy, a U.S.-based electric utility, has increased its capital spending plan for the next four years by 33%, to $57 billion. This increase is largely due to the expansion of the energy infrastructure needed to service Meta data centers, according to the company. The U.S. Energy Information Administration reports that the U.S. power demand will reach record levels this year as data centers are rapidly built. Some of these data centers use as much energy as a city. Entergy has been one of the utilities to increase capital expenditures in the past two years. This is partly for the construction and upgrading of transmission lines, as well as power plants. Entergy announced last month that it has entered into an agreement with Meta data centers to provide electricity. The deal will require the construction of seven new combined-cycle natural gas power plants totaling?more than 5.2 gigawatts. One gigawatt can power 750,000 homes. Entergy also plans to build multiple gas-fired plants in Louisiana as part of a separate 2024 agreement for a massive Meta data center campus. On Wednesday, during a conference call for investors to discuss its earnings, Entergy said that it has 7 to 12 gigawatts worth of potential new data centers interested in connecting to the system. Data centers are becoming more common, and this has led to concerns that the average home or business will be stuck with at least a portion of the cost of building a massive energy infrastructure for Big Tech. Entergy claims that the new Meta deal will lower the power bills of the rest its customers. The agreement is also part of a new regulatory framework which requires data centers to pay more for power needs. Entergy reported on Wednesday a 6.7% increase in its first-quarter profits. The company supplies electricity to approximately 3 million customers throughout Arkansas, Louisiana?, Mississippi and Texas. The company reported that its weather-adjusted sales increased?6% over last year. This was boosted by an increase in industrial sales, as data centers, metal manufacturers, and transportation customers all saw sales rise. The New Orleans utility's industrial revenue for the quarter increased by nearly 15%, to 15,895 gigawatt hours. As of March 31, the company's debt level had risen 10% to $34.18 Billion. Entergy's operating costs also increased by nearly 22%, to $2.61 Billion for the period January-March. The company reported a 'net income' of $384.92 millions, or $83 per share, up from $360.76million, or $82 per share, a year earlier. According to LSEG data, Entergy adjusted profit per share reached 86 cents, which is in line with the average analyst estimate.
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Hegseth, Pentagon's Hegseth, defends Iran War and says it is not a Quagmire
Hegseth, the U.S. Defense Secretary, made fiery remarks to Congress on Wednesday. He defended the Iran War by saying it was not a "quagmire" and called Democratic lawmakers "feckless," for criticizing this unpopular conflict. Hegseth testified before Congress for first time after the U.S. launched a war on Iran in February. Trump's popularity is down since the conflict started. The /Ipsos survey found that only?34% Americans approve of the U.S. conflict against?Iran. This is down from 36% at mid-April, and 38% at mid-March. Democrats bombarded Hegseth's office with questions regarding the ongoing conflict. Rep. John Garamendi, of California, called it a "quagmire," and a "political disaster on every level." Hegseth replied angrily. "You call ?it a quagmire, handing propaganda to our ?enemies? Hegseth responded to Garamendi by saying, "Shame 'on you. You made a foolish statement." He also criticized the "reckless feckless and defeatist" Congressional Democrats. "Don't say: 'I'm in support of the troops, but a two-month military mission is a quagmire. ' Whom are you cheering here? "Who are you rooting for?" Reporting by Phil Stewart and Idrees Al, editing by Michelle Nikil
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Pentagon official: U.S. War in Iran cost 25 billion dollars so far
A senior Pentagon official said that the United States war against Iran had 'cost' $25 billion to date. This was the first estimate of the cost for the military. Democrats have been able to gain a strong lead in opinion polls in the six months before mid-term elections, when Trump's Republicans will likely face a tough battle to maintain their House majority. They are also attempting to link affordability with the unpopular Iran War. Jules Hurst who is the comptroller told the House Armed Services Committee members that the majority of this money was "for munitions". Hurst didn't specify what was included in that estimate, or whether it took into account the projected costs for rebuilding and repairing the base infrastructure damaged by the conflict in the Middle East. Rep. Adam 'Smith, the top Democrat in the House Armed Services Committee responded to?Hurst by saying: "I am glad that you answered that?"question. We've asked for a very long time and nobody has given us a number. The United States began to conduct strikes against Iran in February. Both sides maintain a fragile truce. Pentagon has sent tens and thousands of additional forces to the Middle East. Three aircraft carriers are also stationed in the area. Thirteen U.S. soldiers have died in the conflict and hundreds of others were injured. The disruptions in oil and gas shipments since the start of the war have caused a rise in the price of gasoline and agricultural products like fertilizers in the United States, in addition to the list of other high prices for consumers. Trump's popularity is down since U.S. and Israel started a war on Iran in February, which led to an increase in gas prices. A recent Ipsos survey found that only?34% Americans approve of the U.S. war with Iran. This is down from 36% at mid-April, and 38% at mid-March.
Trump's sudden Iran reversal reveals limits to his leverage
Donald Trump's dramatic retreat from his chilling threats?to wipeout Iran's civilisation has exposed the limits and rising risks of the U.S. President's unpredictable negotiating style.
Trump's decision to back down on Tuesday and accept a ceasefire lasting two weeks - which some critics called "TACO" or "Trump always cries out" – was the biggest step to date in de-escalating the 40-day war that has shaken the Middle East, and disrupted the global energy markets.
Trump's claim of a?victory? over Iran was based on a mix of maximalist demands and erratic language, as well as increasingly extreme threats.
Trump went further than ever on Tuesday morning, when he warned Iran via social media: "A whole civilization will perish tonight if it doesn't reach a deal."
Trump reversed his threat, which experts claim could have been war crimes. He announced a truce agreement mediated by Pakistan just two hours before the deadline he set for Iran to open up the Strait of Hormuz.
In his post, he claimed that the U.S. has "already achieved and exceeded all military objectives."
Analysts say that despite Trump's triumphalist rhetoric, Iran will likely emerge from this conflict as a persistent problem for Washington. It is militarily weaker but has a more hardline leader, de facto control of the vital waterway used to ship oil, and a stockpile buried of highly enriched nuclear material.
Trump has hailed himself as a master negotiator ever since his days as a real estate developer, but some analysts claim he can limit himself with his negotiating approach and undermine U.S. credibilities on the international stage.
Jon Alterman, a Washington-based think tank member at the Center for Strategic & International Studies, said that "the president was trapped by himself and his hyperbole." "He couldn't have destroyed Iranian culture, and the costs to even appear to try would have massive."
This approach comes with an additional risk: that the adversaries, including China and Russia, will become aware of it.
The surprise factor is fading, said a Republican legislator who was in touch with the White House Tuesday night. He was referring to Trump’s habit of reversing his position after making tough-sounding statements.
Karoline Leavitt, White House Press Secretary, denied that Trump had given in. She told reporters on Wednesday that Trump's language was part his "tough negotiation style" and the world should take his words "very seriously."
EXTREME NEGATIVE POSITIONS
Trump is known for taking extreme positions in negotiations, then reversing them.
Analysts said that at times this strategy appeared to be deliberate, while other times it seemed random, with the administration reverting in response to pressure from the financial markets or MAGA's political base.
Trump's new stance on Iran was prompted by a rise in U.S. gas prices and his own deteriorating approval ratings.
The term "TACO", which is derived from the phrase "Tariff Adjustment" (or "TACO"), dates back to around a decade ago. Faced with a loss of $6.5 trillion in U.S. stocks over the course of just four days, Trump lowered the hefty duties he announced at his "Liberation Day", event held at the White House, days earlier.
Few weeks later, he reversed another set of punitive measures against China.
Both times, after Trump's reversals, the stock markets - that Trump often cites to gauge his performance – rallied fervently.
The S&P 500 index rose 2.5% on Wednesday following the ceasefire declaration, as per usual.
Trump has also backed down on his threats to seize Greenland, a NATO member country, from Denmark and his desire to take over the war-ravaged Gaza.
His deadlines to secure a ceasefire in the Gaza war between Israel and Hamas did yield results, but his ultimatums that the Palestinian militant group disarm went?unheeded.
Trump's second-term military threats have gone far beyond the 2017-2021 presidential term.
A special forces raid led to the capture in January of Nicolas Maduro, and an improved U.S.-compliant government in Caracas.
Trump acted on escalating threats made against the Islamic Republic when he attacked it with Israel on February 28. This was while Washington and Tehran continued to negotiate over the Iranian nucleus program.
The question is now whether Trump could still fail to achieve his stated goals, such as 'closing Iran’s path towards a nuclear weapon,' despite tactical military achievements. Iran has denied wanting a nuclear weapon, but still has a large stockpile believed to be mostly underground after U.S. and Israeli air strikes on June.
'MADMAN THEORY'
Trump and his advisers have insisted for years that being unpredictable was a negotiation tactic to keep opponents on their heels.
Jonathan?Panikoff is a former U.S. deputy intelligence officer for Middle East who now works at the Atlantic Council in Washington. "He brought Iran to the brink and managed to escape at least with the temporary off-ramp that he had hoped would come," said Jonathan?Panikoff, a former U.S. intelligence officer for the Middle East now working at the Atlantic Council think tank in Washington.
Alexander Gray, a senior official from the first Trump administration who is now CEO of American Global Strategies, has rejected the idea that this was another example of Trump’s TACO tendencies and stated instead that the heated rhetoric aimed to "escalate to de-escalate".
Trump is believed to have embraced parts of Richard Nixon's Madman Theory. This theory, popularized during the Vietnam War, holds that extreme threats will force opponents to negotiate. Nixon wanted the North Vietnamese people to think he was insane and could use nuclear weapons.
Mark Dubowitz is the CEO of the Foundation for the Defense of Democracies. A nonprofit research institute that is considered hawkish in foreign policy. He said he agreed with Trump's belief that "you have to literally out-crazy the Iranians" despite the drawbacks.
Dubowitz stated that the Madman Theory is not only a bad idea, but it also scares your friends and family. Reporting by Matt Spetalnick and David Brunnstrom; Additional reporting by Andrea Shalal; Patricia Zengerle; Nandita BOSE and Dan Burns. Writing by Matt Spetalnick. Editing by Don Durfee, Nia Williams and Nia William.
(source: Reuters)