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Tyson Foods to Eliminate Human Antibiotics in Chicken Production by 2017

Tyson Foods to Eliminate Human Antibiotics in Chicken Production by 2017



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Tyson aims to remove human antibiotics from its chicken within the next 2 years

‘Antibiotic-resistant infections are a global health concern,’ acknowledged Tyson CEO Donnie Smith.

Tyson Foods, one of the world’s largest meat processors, announced that it has begun “striving to eliminate the use of human antibiotics from its U.S. broiler chicken flocks by the end of September 2017.” Tyson’s broiler farms, where chickens are raised for meat, already operate without antibiotics, and the company adopted antibiotic-free feed this year.

Amid the growing field of research suggesting the dangers associated with the use of human antibiotics to treat livestock — a practice which the FDA says is at an all-time high — companies like Perdue and McDonald’s have also recently committed to the phasing out of human antibiotics.

The move by McDonald’s in particular, which is one of the country’s largest buyers of chicken, was predicted to have a widespread effect on the rest of the poultry industry, evident in the new development from Tyson. In a press release, the company indicated that Tyson’s international business was taking similar measures to reduce antibiotic dependence, but had not set a deadline.

“Antibiotic resistant infections are a global health concern,” said Donnie Smith, president and CEO of Tyson Foods. “We're confident our meat and poultry products are safe, but want to do our part to responsibly reduce human antibiotics on the farm so these medicines can continue working when they're needed to treat illness. Given the progress we've already made reducing antibiotics in our broilers, we believe it's realistic to shoot for zero by the end of our 2017 fiscal year.”

Later this year, Tyson Foods will also begin working with its suppliers to reduce the use of human antibiotics on cattle, hog, and turkey farms.


Tyson to End Use of Human Antibiotics in Its Chickens by 2017

Tyson Foods, one of the country’s largest meat producers, said on Tuesday that it planned to eliminate the use of human antibiotics in its chicken production by 2017.

The company had been working toward that goal for some time, ceasing the use of antibiotics in its hatcheries last year and adopting feed free of antibiotics this year.

Then McDonald’s, the sprawling restaurant chain that is one of Tyson’s biggest customers, said in March that it planned over the next two years to rid its supply chains of chicken treated with antibiotics important to human medicine.

At that time, health advocates and investment analysts predicted Tyson would take the final steps to eliminate the drugs from its chicken production. The company said in a news release that it would begin meeting with groups of farmers who produce pork, turkey and beef for Tyson under contract to come up with a plan for eliminating antibiotic use in their programs.

“Antibiotic-resistant infections are a global health concern,” said Donnie Smith, president and chief executive of Tyson Foods, in a statement. “We’re confident our meat and poultry products are safe, but want to do our part to responsibly reduce human antibiotics on the farm so these medicines can continue working when they’re needed to treat illness.”

Federal regulators have been increasingly vocal in raising concerns over the use of antibiotics in animal husbandry as more and more bacterial pathogens have shown resistance to such drugs. In 2013, the Centers for Disease Control and Prevention estimated that at least two million Americans fall sick each year because of antibiotic-resistant infections and that at least 23,000 die as a result.

The government’s concern has caught the attention of consumers, who also are increasingly aware of how their food is produced, and food companies and restaurants are using more “antibiotic-free” labels as marketing tools that sometimes allow them to command a higher price.

Perdue, another large chicken producer, said last fall that it had eliminated human antibiotics from its hatcheries, the last step in a long process to reduce its reliance on such drugs. It still uses antibiotics that are not used in human medicine, as will Tyson.


Tyson Foods Plans To Cut Human-Used Antibiotics In American Chicken Flocks By 2017

CHICAGO, April 28 (Reuters) - Tyson Foods Inc, the largest U.S. poultry producer, plans to eliminate the use of human antibiotics in its chicken flocks by September 2017 - one of the most aggressive timelines yet set by an American poultry company.

The Arkansas-based chicken and meat giant also said it is working on ways to curtail such on-farm drug practices at its other protein businesses, which include pork and beef.

The move marks the latest push by the livestock and food industries to reduce the use of antibiotics crucial to human health in meat production.

Authorities are concerned that the routine feeding of antibiotics to animals could spur the creation of antibiotic resistant superbugs in humans, creating a health hazard.

Tyson's move, announced on Tuesday morning, aims to help the company meet a deadline recently outlined by McDonald's Corp. to have its U.S. restaurants gradually stop buying chicken raised with human antibiotics over the next two years.

But the company, a key chicken supplier to McDonald's, said in a statement to Reuters that its plans are part of an ongoing effort and "go beyond one customer."

Tyson said it is also forming working groups with independent farmers, company suppliers, veterinarians and others to talk about how to develop ideas to cut the use of antibiotics vital to fighting human infections in its U.S. beef, pork and turkey supply chains.

The working groups will begin meeting this summer.

While veterinary use of antibiotics is legal, controversy has grown over the routine feeding of antibiotics that are important to humans to otherwise healthy chicken, cattle and pigs in a bid to stave off disease and help the animals grow more quickly.

Tyson said it has already stopped using all antibiotics in its 35 broiler hatcheries and has cut human antibiotics used to treat its broiler chickens by more than 80 percent since 2011. The company said it requires a veterinary prescription when antibiotics are used on its broiler farms.

"Given the progress we've already made reducing antibiotics in our broilers, we believe it's realistic to shoot for zero by the end of our 2016 fiscal year," Donnie Smith, president and chief executive of Tyson Foods, said in a statement.

Earlier this month, the Wall Street Journal reported that Pilgrim's Pride Corp., the nation's second-largest U.S. poultry processor, would cut all antibiotics from a quarter of its chicken production by 2019.

Rival poultry processor Perdue Farms Inc. told Reuters more than 95 percent of the chickens it produces are raised without antibiotics approved for human use, and more than half are raised with no antibiotics of any kind.

Sandwich chain Chick-fil-A in 2014 gave its producers five years to meet its commitment to go antibiotic-free for chicken. Perdue is a major supplier to Chick-fil-A.

Tyson has been working with livestock drug companies and others to test a variety of alternatives to antibiotics to protect birds, ranging from probiotics to essential oils derived from plant extracts, the company told Reuters.

However, alternatives to human antibiotics are also needed for treating ill birds, the company said. It is providing funds to help accelerate research into disease prevention and antibiotic alternatives to be used on farms.

Tyson declined to say how much the company will spend to buch such funding of livestock pharmaceuticals and alternatives.

Some poultry industry experts say the options for non-human drugs to treat certain diseases in broiler chickens can be limited, and say animal pharmaceutical firms have been slow to invest for the development of new chicken-only antibiotics.

Tyson said it plans to meet its 2017 antibiotic-withdrawal timeline, but there could be some exceptions.


Tyson to end use of human antibiotics in U.S. chickens by 2017

Chicago | Reuters –– Tyson Foods, the largest U.S. poultry producer, plans to eliminate use of human antibiotics in its chicken flocks by September 2017, one of the most aggressive timetables yet set by an American poultry company.

The Arkansas-based chicken and meat company also said Tuesday it is working on ways to curtail such on-farm drug practices at its other protein businesses, which include pork and beef.

The move marks the latest push by the livestock and food industries to reduce the use of antibiotics crucial to human health in meat production.

Public health experts and federal regulators are concerned that routine feeding of antibiotics to animals could spur creation of antibiotic-resistant superbugs in humans, creating a health hazard.

Tyson’s move will help the company meet a deadline recently outlined by McDonald’s for its U.S. restaurants to gradually stop buying chicken raised with human antibiotics over the next two years.

But Tyson’s timetable was not synchronized with that of McDonald’s, to which Tyson is a leading chicken supplier, CEO Donnie Smith said on a conference call Tuesday.

The shift away from human antibiotics in its poultry business is not expected to change Tyson’s costs, the company said, and is part of an ongoing effort that goes beyond McDonald’s.

Antibiotic use in cattle, hogs

The news was praised by public health and consumer advocacy groups, which note that the nation’s top three chicken producers have all made commitments to end routine antibiotic use. The pressure now, critics say, will be for meat companies to carry those changes over to their beef and hog units.

Smith said Tuesday that Tyson does not know what volume of medically important antibiotics are being used on-farm for the company’s other meat businesses, because it does not own all the livestock or control the production or feed supply.

Tyson controls its chicken supply chain from beginning to end, from owning the birds to supplying the medicated feed to the contract farmers that raise the broilers for them. But it buys hogs, cattle and turkeys from independent farmers.

“We don’t know because we don’t own those animals,” Smith said.

To gain clarity, Tyson is forming working groups with independent farmers, company suppliers, veterinarians and others to talk about how antibiotics are used on the farm and to develop ideas to cut the use of drugs vital to fighting human infections in its U.S. beef, pork and turkey supply chains.

The working groups will begin meeting this summer. Tyson has not set a time frame or reduction goals for decreasing human antibiotic use in its other protein businesses, company officials said.

“It’s the same challenge that McDonald’s faced with its chicken business,” said Steven Roach, senior analyst at advocacy group Keep Antibiotics Working. “While Tyson may not control that supply chain right now, they can, like McDonald’s, make demands on their suppliers to do things differently.”

While veterinary use of antibiotics is legal, controversy has grown over the routine feeding of antibiotics that are important to humans to otherwise healthy chicken, cattle and pigs in a bid to stave off disease and help the animals grow more quickly.

Tyson said it has already stopped using all antibiotics in its 35 broiler hatcheries and has cut human antibiotics used to treat its broiler chickens by more than 80 percent since 2011. The company said it requires a veterinary prescription when antibiotics are used on its broiler farms.

Industry shifts

Earlier this month, the Wall Street Journal reported that Pilgrim’s Pride, the nation’s second-largest poultry processor, would cut all antibiotics from a quarter of its chicken production by 2019.

Rival poultry processor Perdue Farms told Reuters more than 95 per cent of the chickens it produces are raised without antibiotics approved for human use, and more than half are raised with no antibiotics of any kind.

In 2014, sandwich chain Chick-fil-A gave its producers five years to meet its commitment to go antibiotic-free for chicken. Perdue is a major supplier to Chick-fil-A.

Tyson has been working with livestock drug companies and others to test a variety of alternatives to antibiotics to protect birds, ranging from probiotics to essential oils derived from plant extracts, the company said.


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Public health advocates praised the company’s announcement.

“We hope that more restaurants and retailers will take advantage of the increased supply and make reduced antibiotic options available to their customers,” said Steve Roach, senior analyst with the advocacy group Keep Antibiotics Working.

“While the chicken industry as a whole is making great strides in reducing antibiotic overuse, it begs the question: Why are the turkey, pork and beef industries lagging so far behind?”

A former chief scientist at the Food and Drug Administration, Jesse Goodman, said it was “encouraging to see the increasing consciousness both in industry and among consumers that antibiotics are precious resources and should only be used when necessary for the health of animals or people.” Goodman is director of Georgetown University’s Center on Medical Product Access, Safety and Stewardship.

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The White House last month released a strategy for combatting antibiotic resistance that affirmed the steps the FDA has taken to phase out the use of medically important antimicrobials for growth promotion, through the voluntary cooperation of drugmakers, and to require veterinary oversight of all other uses of the antibiotics.

The plan also called for studying the extent of the problem on farms and laid out plans to accelerate development of new drugs that producers can use more safely.


Tyson plans to eliminate human antibiotics from its chickens

Tyson Foods, the country’s largest poultry producer, says it will stop feeding its chickens antibiotics that are used to treat humans.

The company says it plans to eliminate the drugs in its broiler chicken flocks – chickens grown for meat – by September 2017.

Farmers that raise livestock often add antibiotics to animal feed in an effort to treat disease and to prevent diseases from spreading. Adding low-levels of antibiotics to feed can also help animals grow more quickly, and packing on the pounds has made antibiotics a popular feed additive.

The problem is that the overuse of antibiotics can lead to strains of bacteria resistant to treatment, often called “super bugs,” as our Kristofor Husted reported earlier.

By adding antimicrobial drugs to livestock at a low dose, “we would select for the resistant organisms that would then pass through the environment or the food chain and into humans,” said Mike Apley, a professor of veterinary medicine at Kansas State University.

That can lead to dangerous, un-treatable illnesses in humans.

The U.S. Food and Drug Administration asked pharmaceutical companies in 2013 to voluntarily phase out the use of antimicrobial drugs that promote growth in livestock.

Major players in livestock like Perdue and Pilgrim’s Pride have cut their use of antibiotics. McDonald’s said last month that it will stop serving meat from chickens that have been treated with antibiotics that medically important to human medicine.

Critics of antibiotic use in animals say this is a big move for not only the poultry landscape, but sets a precedent for all meat producers in the U.S.

“This is really going to be the new normal for chicken,” said Sasha Stashwick, senior advocate for the National Resources Defense Council’s food and agriculture program. “And also turkey, pork and beef supply chains can start looking to make the same change.”

Indeed, Tyson says it’s working with its other meat sectors to reduce antibiotic use. Stashwick said this new standard falls in line with consumer demand for antibiotic-free meat in the U.S.

“We know that antibiotic meat and poultry production is starting from a small share of total meat production, but it’s growing really fast,” she said. “It’s growing something like 25 to 30 percent every year and that’s largely driven by consumers.”

The announcement does not mean that Tyson’s chickens will be antibiotic free, as NPR’s Dan Charles pointed out:

Tyson still will use a class of antibiotics called ionophores that are not used to treat humans. If bacteria develop resistance to ionophores, doctors don't care, because they never use ionophores anyway.


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Tyson Foods' international business is committed to taking similar measures on antibiotic use in its global chicken operations but has not set a timeframe.

Tyson examining ways to reduce human antibiotics in cattle, pigs and turkeys

Tyson Foods is also forming working groups with independent farmers and others in the company's beef, pork and turkey supply chains to discuss ways to reduce the use of human antibiotics on cattle, hog and turkey farms. Those groups will begin meeting in the summer of 2015.

Company says it won’t compromise animal well-being

Tyson Foods plans to work with food industry, government, veterinary, public health and academic communities, and provide funding, to accelerate research into disease prevention and antibiotic alternatives on the farm. The company is also getting input from its Animal Well-Being Advisory Panel, which is made up of independent advisors.

"One of our core values is to serve as responsible stewards of animals – we will not let sick animals suffer," Smith said. "We believe it's our responsibility to help drive action towards sustainable solutions to this challenge by working with our chicken, turkey, beef and pork supply chains."


Tyson Foods Plans To Cut Human Antibiotics In US Chicken Flocks By 2017

CHICAGO (Reuters) - Tyson Foods Inc, the largest U.S. poultry producer, plans to eliminate the use of human antibiotics in its chicken flocks by September 2017 - one of the most aggressive timelines yet set by an American poultry company.

The Arkansas-based chicken and meat giant also said it is working on ways to curtail such on-farm drug practices at its other protein businesses, which include pork and beef.

The move marks the latest push by the livestock and food industries to reduce the use of antibiotics crucial to human health in meat production.

Authorities are concerned that the routine feeding of antibiotics to animals could spur the creation of antibiotic resistant superbugs in humans, creating a health hazard.

Tyson's move, announced on Tuesday morning, aims to help the company meet a deadline recently outlined by McDonald's Corp. to have its U.S. restaurants gradually stop buying chicken raised with human antibiotics over the next two years.

But the company, a key chicken supplier to McDonald's, said in a statement to Reuters that its plans are part of an ongoing effort and "go beyond one customer."

Tyson said it is also forming working groups with independent farmers, company suppliers, veterinarians and others to talk about how to develop ideas to cut the use of antibiotics vital to fighting human infections in its U.S. beef, pork and turkey supply chains.

The working groups will begin meeting this summer.

While veterinary use of antibiotics is legal, controversy has grown over the routine feeding of antibiotics that are important to humans to otherwise healthy chicken, cattle and pigs in a bid to stave off disease and help the animals grow more quickly.

Tyson said it has already stopped using all antibiotics in its 35 broiler hatcheries and has cut human antibiotics used to treat its broiler chickens by more than 80 percent since 2011. The company said it requires a veterinary prescription when antibiotics are used on its broiler farms.

"Given the progress we've already made reducing antibiotics in our broilers, we believe it's realistic to shoot for zero by the end of our 2016 fiscal year," Donnie Smith, president and chief executive of Tyson Foods, said in a statement.

Earlier this month, the Wall Street Journal reported that Pilgrim's Pride Corp., the nation's second-largest U.S. poultry processor, would cut all antibiotics from a quarter of its chicken production by 2019.

Rival poultry processor Perdue Farms Inc. told Reuters more than 95 percent of the chickens it produces are raised without antibiotics approved for human use, and more than half are raised with no antibiotics of any kind.

Sandwich chain Chick-fil-A in 2014 gave its producers five years to meet its commitment to go antibiotic-free for chicken. Perdue is a major supplier to Chick-fil-A.

Tyson has been working with livestock drug companies and others to test a variety of alternatives to antibiotics to protect birds, ranging from probiotics to essential oils derived from plant extracts, the company told Reuters.

However, alternatives to human antibiotics are also needed for treating ill birds, the company said. It is providing funds to help accelerate research into disease prevention and antibiotic alternatives to be used on farms.

Tyson declined to say how much the company will spend to buch such funding of livestock pharmaceuticals and alternatives.

Some poultry industry experts say the options for non-human drugs to treat certain diseases in broiler chickens can be limited, and say animal pharmaceutical firms have been slow to invest for the development of new chicken-only antibiotics

Tyson said it plans to meet its 2017 antibiotic-withdrawal timeline, but there could be some exceptions.

"We won't jeopardize animal well-being just to get there," Smith said. "We'll use the best available treatments to keep our chickens healthy, under veterinary supervision."


Tyson Foods to end use of human antibiotics in U.S. chickens by 2017

CHICAGO (Reuters) - Tyson Foods Inc <TSN.N>, the largest U.S. poultry producer, plans to eliminate use of human antibiotics in its chicken flocks by September 2017, one of the most aggressive timetables yet set by an American poultry company.

The Arkansas-based chicken and meat company also said Tuesday it is working on ways to curtail such on-farm drug practices at its other protein businesses, which include pork and beef.

The move marks the latest push by the livestock and food industries to reduce the use of antibiotics crucial to human health in meat production.

Public health experts and federal regulators are concerned that routine feeding of antibiotics to animals could spur creation of antibiotic-resistant superbugs in humans, creating a health hazard.

Tyson's move will help the company meet a deadline recently outlined by McDonald's Corp <MCD.N> for its U.S. restaurants to gradually stop buying chicken raised with human antibiotics over the next two years.

But Tyson's timetable was not synchronized with that of McDonald's, to which Tyson is a leading chicken supplier, Chief Executive Donnie Smith said on a conference call Tuesday.

The shift away from human antibiotics in its poultry business is not expected to change Tyson's costs, the company said, and is part of an ongoing effort that goes beyond McDonald's.

ANTIBIOTIC USE IN CATTLE, HOGS

The news was praised by public health and consumer advocacy groups, which note that the nation's top three chicken producers have all made commitments to end routine antibiotic use. The pressure now, critics say, will be for meat companies to carry those changes over to their beef and hog units.

Smith said Tuesday that Tyson does not know what volume of medically important antibiotics are being used on-farm for the company's other meat businesses, because it does not own all the livestock or control the production or feed supply.

Tyson controls its chicken supply chain from beginning to end, from owning the birds to supplying the medicated feed to the contract farmers that raise the broilers for them. But it buys hogs, cattle and turkeys from independent farmers.

"We don't know because we don't own those animals," Smith said.

To gain clarity, Tyson is forming working groups with independent farmers, company suppliers, veterinarians and others to talk about how antibiotics are used on the farm and to develop ideas to cut the use of drugs vital to fighting human infections in its U.S. beef, pork and turkey supply chains.

The working groups will begin meeting this summer. Tyson has not set a time frame or reduction goals for decreasing human antibiotic use in its other protein businesses, company officials said.

"It's the same challenge that McDonald's faced with its chicken business," said Steven Roach, senior analyst at advocacy group Keep Antibiotics Working. "While Tyson may not control that supply chain right now, they can, like McDonald's, make demands on their suppliers to do things differently."

While veterinary use of antibiotics is legal, controversy has grown over the routine feeding of antibiotics that are important to humans to otherwise healthy chicken, cattle and pigs in a bid to stave off disease and help the animals grow more quickly.

Tyson said it has already stopped using all antibiotics in its 35 broiler hatcheries and has cut human antibiotics used to treat its broiler chickens by more than 80 percent since 2011. The company said it requires a veterinary prescription when antibiotics are used on its broiler farms.

Earlier this month, the Wall Street Journal reported that Pilgrim's Pride Corp <PPC.O>, the nation's second-largest poultry processor, would cut all antibiotics from a quarter of its chicken production by 2019.

Rival poultry processor Perdue Farms Inc told Reuters more than 95 percent of the chickens it produces are raised without antibiotics approved for human use, and more than half are raised with no antibiotics of any kind.

In 2014, Sandwich chain Chick-fil-A gave its producers five years to meet its commitment to go antibiotic-free for chicken. Perdue is a major supplier to Chick-fil-A.

Tyson has been working with livestock drug companies and others to test a variety of alternatives to antibiotics to protect birds, ranging from probiotics to essential oils derived from plant extracts, the company said.

(Reporting By P.J. Huffstutter in Chicago Editing by Jo Winterbottom and Richard Pullin)

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Following is a list of company earnings scheduled for release May 31-June 4, along with earnings previews for select companies. Next week’s earnings are probably not much significant for major market movements, but it is adequate to gauge investors’ sentiment.

Stock Splits Are Back. So Is the Debate Over Whether They Matter

(Bloomberg) -- Stock splits are back in vogue among big U.S. companies, reviving a debate about whether the practice that had fallen out of favor for years is worth the fuss.Last week, Nvidia Corp. became the eighth company in the S&P 500 Index to announce a split in the past year, joining big names like Apple Inc. and Tesla Inc. That’s the most over a comparable period in six years, according to data compiled by Bloomberg.The surge in splits comes amid a rally that’s pushed share prices of almost 600 stocks in the Russell 3000 Index above $100. Yet that has done little to settle the age-old-argument among investors about whether such stock-price engineering has any bearing on performance. In fact, recent developments such as soaring retail trading and fractional share ownership have only heated things up.“Arithmetically, there’s no merit to the notion that stock splits work,” said Mark Lehmann, chief executive officer of JMP Securities LLC. “But there is an optical hesitancy for certain stocks at certain prices and there is a segment of the investing public where that will never change.”The primary motivation cited by companies doing splits is simple: to make each share cheaper to buy. Nvidia, whose share price has more than quadrupled since the start of 2019 to reach almost $650, said in a statement announcing its 4-for-1 stock-split plan that its aim was to “make stock ownership more accessible to investors and employees.” A representative for the chipmaker declined to comment further.Once a reliable hallmark of bull-market exuberance, the practice had until recently fallen out of favor. In 2006 and 2007, when stocks were again setting records, there were 47 splits in the S&P 500. Three companies -- Nvidia, Paccar Inc. and Cummins Inc. -- even split twice. In 2019, there were only two.For Julian Emanuel, chief equity and derivatives strategist at BTIG, it’s harder to make the case for splitting a stock these days because of the rise of commission-free trading and brokerages offering fractional shares. Those developments “have largely rendered irrelevant the dollar value of a company’s share price,” he said in an interview.Brokerages like Robinhood now let investors buy a slice of a share for as little as $1 rather than forking over, say, more than $2,300 for a single share of Google-parent Alphabet Inc.Limited Benefits A look at the data backs up the case against splits providing long-term benefits to stock performance. The shares of companies that have split outperformed the S&P 500 on average in four of the last five years in the year the split was announced, according to Bloomberg data. The calendar year following the move, however, those same shares underperformed four of the five years.The recent rash of stock splits has sparked speculation that other large technology companies like Amazon.com Inc. that boast four-digit share prices may be next. Amazon split its stock three times in 1998 and 1999 and hasn’t done one since. Shares of the e-commerce giant trade around $3,200 and have gained more than 5,000% since its last split.Regardless of what the historical-performance record shows, the surge in retail trading over the past year may be altering the calculus for companies when it comes to evaluating splits.U.S. retail investors are now second in share trading only to market makers and independent high-frequency traders, according to Larry Tabb, director of market structure research at Bloomberg Intelligence. The retail segment is now larger than quantitative investors, hedge funds and traditional long-only participants, said Tabb.“A lot of investing is driven by psychology,” said Kevin Walkush, a portfolio manager with Jensen Investment Management. “Now, rather than a retail investor facing the challenge of buying a fractional share, a stock split means they can buy it outright. It just opens up the market that much more for retail investors.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

Memorial Day gas prices are the highest in 7 years — here's how to fight back

Take defensive action as the economy opens back up and fuel costs rise.

Sunak pushes Biden for tougher global tax deal

Rishi Sunak is pushing the United States to agree to tougher rules on the tax paid by tech giants as part of a global corporation tax overhaul. Finance ministers from the G7 will meet this week to thrash out the biggest reforms to global tax rules in a generation in a bid to ensure multinational companies pay their fair share. President Joe Biden has proposed a minimum global corporation tax rate of 15pc as well as new rules forcing the world's largest 100 companies to pay taxes based on the location of their customers, rather than where they book profits. The plans are aimed to preventing multinationals from shifting profits to low-tax jurisdictions - a growing problem that is feared will deprive governments of revenues as they try to recover from the pandemic. However, the UK is holding out on backing America's plans for a minimum corporation tax rate as it seeks more assurances over the tax treatment of big tech companies such as Facebook, Amazon and Google. The Chancellor told the Mail on Sunday: "We understand why an agreement on global corporation tax is important to our American friends. We need them to understand why fair taxation of tech companies is important to us. "There's a deal to be had and I'm urging the US - and all of the G7 - to come to the table next week and get it done."

Putin Is Betting Coal Still Has a Future

(Bloomberg) -- European governments are drawing up plans to phase out coal, U.S. coal-fired power plants are being shuttered as prices of clean energy plummet, and new Asian projects are being scrapped as lenders back away from the dirtiest fossil fuel.And Russia? President Vladimir Putin’s government is spending more than $10 billion on railroad upgrades that will help boost exports of the commodity. Authorities will use prisoners to help speed the work, reviving a reviled Soviet-era tradition.The project to modernize and expand railroads that run to Russia’s Far Eastern ports is part of a broader push to make the nation among the last standing in fossil fuel exports as other countries switch to greener alternatives. The government is betting that coal consumption will continue to rise in big Asian markets like China even as it dries up elsewhere.“It's realistic to expect Asian demand for imported coal to increase if conditions are right,'' said Evgeniy Bragin, Deputy Chief Executive Officer at UMMC Holding, which owns a coal company in western Siberia’s Kuzbass region. “We need to keep developing and expanding the rail infrastructure so that we have the opportunity to export coal.’’The latest 720 billion ruble ($9.8 billion) project to expand Russia’s two longest railroads — the Tsarist-era Trans-Siberian and Soviet Baikal-Amur Mainline that link western Russia with the Pacific Ocean— will aim to boost cargo capacity for coal and other goods to 182 million tons a year by 2024. Capacity already more than doubled to 144 million tons under a 520 billion ruble modernization plan that began in 2013. Putin urged faster progress on the next leg at a meeting with coal miners in March.“Russia is trying to monetize its coal reserves fast enough that coal will contribute to GDP rather than being stuck in the ground,” said Madina Khrustaleva, an analyst who specializes in the region for TS Lombard in London.Putin is betting that his country’s land border with China and good relations with President Xi Jinping make it a natural candidate to dominate exports to the nation that consumes more than half of the world’s coal. His case is helped by the fact that Australia, currently the number one coal exporter, is facing trade restrictions from China amid a diplomatic dispute over the origins of the coronavirus.But the plan is fraught with risk, both for Russia’s economy and the planet. The UN's Intergovernmental Panel on Climate Change recommends immediate phasing out of coal to avoid catastrophic global warming and the effects of climate change are expected to cost Russia billions in coming decades. Earlier this month the International Energy Agency went one step further and said no new fossil-fuel infrastructure should be built if the world wants to keep global warming will below 1.5 degrees Celsius. With all but one of the top 10 economies committed to reaching net-zero emissions within decades, the IEA's Net Zero by 2050 Roadmap calls for phasing out all coal power plants without carbon capture as soon as 2040.It’s also not a given that Asian coal demand will keep growing. Coal consumption in China is poised to reach a record this year and the country continues to build coal-fired power plants, but it also plans to start reducing consumption starting in 2026. At the same time it's increasing output from domestic mines, leaving less room for foreign supplies. Even in the IEA's least climate-friendly scenarios, global coal demand is expected to stay flat in 2040 compared to 2019.A coal strategy approved by the Russian government last year envisages a 10% increase in coal output from pre-pandemic levels by 2035 under the most conservative scenario, based on rising demand not just from China, but also India, Japan, Korea, Vietnam and possibly Indonesia.The relatively low sulphur content of Russian coal might give it an edge in Korea, which has tightened pollution laws in recent years, but other Asian countries have struggled to secure funding for proposed plants and Indonesia said this week it won’t approve any new coal-fired power plants. At a Group of Seven nations meeting, environment ministers agreed to phase out support for building coal power plants without carbon capture before the end of this year.For Putin there is more at stake than just money. At a video conference in March, he reminded government officials that the coal industry drives the local economies of several Russian regions that are home to about 11 million people. Unrest among coal miners helped put pressure on the government before the Soviet Union collapsed in 1991, though the sector is now a much smaller and less influential part of the economy.“We need to carefully assess all possible scenarios in order to guarantee that our coal mining regions are developed even if global demand decreases,” Putin said. The country’s biggest coal producers are privately run, meaning they aren’t facing the kind of financing problems currently being encountered by listed companies elsewhere as banks pull back funding for dirty energy. Suek Plc, owned by billionaire Andrey Melnichenko, and Kuzbassrazrezugol OJSC, controlled by Iskander Makhmudov, are both planning to increase output. Russia also plans to boost coal production for steel making. A-Property, owned by Russian businessmen Albert Avdolyan, bought the Elga coal mine in Russia’s Far Eastern region of Yakutia last year and plans to invest 130 billion rubles to expand output to 45 million tons of coal from the current 5 million tons by 2023. A third stage of Russia’s railroad expansion project will focus on boosting infrastructure for shipping coal out of Yakutia, a Russian Railways official said last month.“In 2021, many Asia Pacific states have seen their economies recover from the pandemic,” said Oleg Korzhov, the CEO of Mechel PJSC, one of Russia’s biggest coal companies. “We expect that demand for metallurgical coal in Asia Pacific will remain high in the next five years.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

Is Gold Set to Tear Even Higher? Four Key Charts to Watch

(Bloomberg) -- Just when the vaccine rollout and economic optimism left gold looking like last year’s metal, it staged a recovery.Bullion is one of the best-performing commodities this month, erasing almost all of this year’s losses. Investors have been lured back by gold’s appeal as an inflation hedge, while the Federal Reserve maintains its monetary stimulus and says price pressures should prove temporary. Spot gold rose 0.4% on Friday, capping a fourth straight weekly gain.Diego Parrilla, who runs the Quadriga Igneo fund, is among those who recently boosted their exposure to gold, saying that central banks won’t risk increasing interest rates to combat inflation for fear of “pricking the enormous bubbles” they’ve created.“We have entered a new paradigm that will be dominated by deeply negative real interest rates, high inflation, and low nominal rates -- an extremely supportive environment for gold,” said Parrilla, who manages $350 million.Still, gold is ultimately a haven asset which conventional logic suggests should suffer as the economy booms. So can the latest rally be sustained? Here are four key charts to watch.Inflation ConundrumIt’s been the hottest question in finance this year, and probably the biggest one for gold: will current inflationary pressures be transitory or persistent?If you ask the Fed, the answer is the former. Parts of bond market disagree, with market-based measures of long-term inflation expectations rising to the highest since 2013 earlier this month.That’s a sweet-spot for gold, which benefits when monetary policy keeps bond rates low even as inflation persists. Real yields on Treasuries have slipped deeper into negative recently, burnishing the appeal of bullion.Where they go next will be critical. Any hint the Fed may taper because of inflation or labor market strength could see bond rates spike -- triggering a repeat of the taper tantrum seen in the wake of the financial crisis, when gold dropped 26% in the space of six months.“The position I think you get to is a place where it gets to be very vulnerable to the taper narrative,” said Marcus Garvey, head of metals strategy at Macquarie Group Ltd.On the other hand, anything that drags on the global economic recovery -- be it poor jobs data or new virus variants -- should see real yields plunge, benefiting the metal.Dollar DriverThe dollar has been another important driver of gold this year. After initially strengthening as the U.S. vaccination program outpaced the rest of the world, it’s declined since March as other nations closed the gap, providing a tailwind for the precious metal.Most analysts don’t see much movement in the dollar going forward, with the median forecast compiled by Bloomberg suggesting only a slight strengthening.If they’re wrong, be it due to divergence in the global recovery or surprising hawkishness from other nations’ central banks, the implications for bullion could be significant.Investor DemandGold’s poor start to the year came as exchange-traded funds cut their holdings of the metal by 237 tons in the four months through to April. Hedge funds trading on Comex also reduced their exposure to the lowest since 2019 in early March.In the second quarter, flows have started to reverse. If that picks up steam, gold could find another leg higher.“There is still potentially a lot of pent-up investment demand,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S. “Still, positions are relatively small.”Others, including Aegon NV’s Robert Jan Van Der Mark, who cut his exposure to gold in November after vaccines were announced, remain to be convinced.“With vaccination rollout on track and economies reopening, we have less appetite for a safe haven/stagflation type of assets in the portfolio,” he said.Bitcoin BounceOften touted as digital bullion, Bitcoin’s rally in the first months of the year was demoralizing for gold bulls. The two assets are both favored by those fearful of hyperinflation and currency debasement, so the cryptocurrency’s outperformance may have turned the heads of would-be bullion buyers.Bitcoin has dropped about 40% from its mid-April high, with substantial outflows from funds. Gold could be a beneficiary.(An earlier version of this story corrected spelling of the central bank in the second paragraph.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

Globant Says It Bought Bitcoin in Q1

With the purchase, the Luxembourg-based company becomes the latest company to hold cryptocurrency on its balance sheet.

Fourth stimulus check in jeopardy while the last payments keep dwindling

Will President Biden and Congress provide more relief? It's looking iffy.

ESG investment as important as divestment from fossil fuels: former Bank of England governor

Since leaving the top post at the Bank of England last year, former Governor Mark Carney has arguably been the most vocal advocate, in urging financial institutions to align themselves with emissions goals of the Paris climate agreement. But as shareholders increasingly step up pressure, and lawmakers call for stricter regulations around climate disclosures, Carney says fossil fuel divestments shouldn’t be the sole focus of tackling the global crisis.

Virgin Galactic Sued by Investor Over SPAC’s Accounting Issues

(Bloomberg) -- Virgin Galactic Holdings Inc. was sued by an investor who claims he lost money when the space-tourism company announced that it would restate its results due to regulatory guidance about the accounting treatment of warrants.The Las Cruces, New Mexico-based company said on April 30 that it would have to restate its 2020 results because of accounting guidance of regulators related to special purpose acquisition companies, or SPACs. The next trading day, its shares fell 9%. The company combined with Social Capital Hedosophia, run by former Facebook executive Chamath Palihapitiya, and went public in October 2019.The Securities and Exchange Commission set forth new guidance in April that warrants, which are issued to early investors in the deals, might not be considered equity instruments and may instead be liabilities for accounting purposes. In a SPAC, early investors buy units, which typically includes a share of common stock and a fraction of a warrant to purchase more stock at a later date. They’re considered a sweetener for backers and many companies treated them as equity instruments for accounting purposes.The investor, Shane Lavin, said in the lawsuit filed Friday in federal court in Brooklyn, New York, that Virgin Galactic and its executives knew that the results they were reporting were wrong. They are seeking class-action status for their lawsuit. Many other SPACs have made or are considering similar restatements due to the accounting treatment of warrants.Virgin Galactic’s stock has been volatile. Since May 3, the day of the price drop that Lavin is suing over, its shares have climbed 55%.Representatives of Virgin Galactic didn’t immediately respond to a request for comment.The case is Lavin v. Virgin Galactic Holdings Inc., 21-cv-03070, U.S. District Court, Eastern District of New York (Brooklyn).More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

Bond Traders Look to Jobs for Taper Clues While Cash Glut Grows

(Bloomberg) -- The glut of spare cash in dollar funding markets is combining with inflation concerns to stoke debate among investors about just how soon the Federal Reserve might have to take its foot off the accelerator.Bond traders are keenly attuned to the buildup of dollars in short-term interest-rate markets, an overabundance reflected in the amount of money sitting and earning absolutely nothing at the Fed’s reverse repo facility. For some, that’s yet another sign that the so-called quantitative easing program ought to be dialed back from its current pace of $120 billion a month, although others say that the central bank facility is acting like it should, as a safety valve, and also point to the other factors fueling the oversupply.Either way, the cash pile --and whether the usage of the Fed’s facility resumes its upward trajectory after slipping on Friday -- is set to be a key focus for traders in the coming week along with crucial U.S. jobs data, which may give clues about just how strong growth and inflation really are.“Progress toward achieving the dual mandate should be the biggest factor” driving decisions about policy tightening, said Credit Suisse Group AG strategist Jonathan Cohn, referring to the Fed’s twin goals on employment and consumer prices.The drumbeat of policy makers making noises about when the Fed should debate tempering its asset purchases has been quickening, although officials have been careful to say that their views are premised on the economy continuing to power forward and the prospects for sustained inflation. The strength of the upcoming labor market report is therefore set to be a major catalyst for bets about when both tapering and rate hikes might begin to take place, as will the evolution of funding markets.The next central bank policy meeting will take place June 15-16, while there is talk of possible tapering signals coming out of the Kansas City Fed’s annual gathering at Jackson Hole in August.Money-market traders are currently pricing in about 18 basis points worth of Fed rate hikes by the end of next year -- down around 3 basis points from levels late last month. That equates to around a 72% chance of a standard 25 basis-point increase in 2022. Before they even get to that point though, officials need to get through tapering, and most analysts expect there to be a lag before they embark on pushing interest rates higherAsymmetric RiskThe yield on 10-year notes has drifted slightly lower over the past couple of weeks, although it received some support in recent days from reports about government budget proposals and at around 1.59% is firmly entrenched in the range that it’s been in for a few months. Bond-market inflation expectations, as measured by so-called breakeven rates, have also eased back slightly, although they remain within sight of the decade highs they reached earlier in May.Some traders are wary that the upcoming report on May job creation could reignite the move higher in long-term yields. The median forecast of economists surveyed by Bloomberg is for an increase in payrolls of around 671,000 people and a figure of that magnitude or higher could make the prior month’s unexpectedly weak reading seem like a one off. There is also the prospect of a revision to figures for April, which came in at around 266,000 despite earlier predictions for a gain of 1,000,000.“The risks in the market are asymmetric toward higher yields,” said John Briggs, global head of desk strategy at Natwest Markets. “After last month’s payroll figure, economists are being conservative this time, so there’s a chance the actual figure is above consensus. And after that, people will then start to worry about the next consumer price report,” set to be released on June 10.What to WatchThe Treasuries market will be closed Monday for a U.S. holiday. Below are the calendar highlights.The economic calendarJune 1: Markit U.S. manufacturing purchasing managers index construction spending Institute for Supply Management manufacturing gauge Dallas Fed manufacturing indexJune 2: MBA mortgage applications Fed Beige Book vehicle salesJune 3: Challenger job cuts ADP employment change nonfarm productivity weekly jobless claims Langer consumer comfort Markit U.S. services PMI ISM services indicatorJune 4: Monthly jobs report factory, durable goods and capital goods ordersThe Fed calendar:June 1: Fed Vice Chairman for supervision Randal Quarles Fed Governor Lael BrainardJune 2: Philadelphia Fed President Patrick Harker Chicago Fed President Charles Evans Atlanta Fed President Raphael Bostic Dallas Fed President Robert KaplanJune 3: Bostic Kaplan Harker QuarlesJune 4: Fed Chair Jerome Powell takes part in a Bank for International Settlements panel on climate change with European Central Bank President Christine Lagarde and other officialsThe auction calendar:June 1: 13-week bills, 26-week bills, 42-day cash management billJune 3: 4-week bills, 8-week billsMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

Mortgage rates dip beneath 3% again, offering new refinance savings

Over 14 million mortgage holders can qualify to save on a refi, new data shows.

Credit Suisse’s RenTech Fund Holds Back Some Client Cash

(Bloomberg) -- Credit Suisse Group is temporarily barring clients from withdrawing all their cash from a fund that invests with Renaissance Technologies.The bank has seen redemption requests prompted by the poor performance of the CS Renaissance Alternative Access Fund, according to people with knowledge of the matter. Assets under management slumped to about $250 million this month, from approximately $700 million at the start of 2020, the people said, asking not to be identified as the matter is private.Redemption demands at the fund trigger a hold back clause, which means clients will receive 95% of their funds after two months, with the remaining 5% expected to be paid out in January, after the fund’s year-end audit, the people said. The hold back mechanism was put in place at the fund’s inception in 2016.The fund lost about 32% last year, in line with the decline in the Renaissance Institutional Diversified Alpha Fund International fund that it invests into, the people said. Renaissance, regarded as one of the most successful quant investing firms in the world, was rocked by billion of dollars in redemptions earlier this year after unprecedented losses in 2020. Three of its funds open to external investors fell by double digits last year.Credit Suisse and Renaissance declined to comment.Credit Suisse is currently under broader scrutiny as new chairman Antonio Horta-Osorio reviews the risk and control functions after the implosion of the bank’s supply-chain finance funds linked to Greensill Capital and the collapse of family office Archegos Capital Management.The Credit Suisse feeder fund was sold as an investment option for rich clients at the bank’s wealth arm.The Renaissance fund, which allows investors to take out money every month, also has the ability to hold back but is not invoking the clause and hasn’t ever done so, according to a person with knowledge of the matter.The fund was up 9.4% this year through May 21 after last year’s losses, the person said. Hold back clauses are a standard part of offer documents at some U.S. based hedge funds.(Updates with details on hold back clause in third paragraph)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

US Stocks Marginally Higher as Investors Shrug Off Inflation Surge

Consumer spending rose 0.5% and personal income plunged 13.1% last month. Consumers’ one-year inflation expectations shot up to 4.6%.


America's biggest chicken producer is putting an end to antibiotics in its chicken feed

The Arkansas-based chicken and meat giant also said it is working on ways to curtail such on-farm drug practices at its other protein businesses, which include pork and beef.

The move marks the latest push by the livestock and food industries to reduce the use of antibiotics crucial to human health in meat production.

Authorities are concerned that the routine feeding of antibiotics to animals could spur the creation of antibiotic resistant superbugs in humans, creating a health hazard.

Tyson's move, announced on Tuesday morning, aims to help the company meet a deadline recently outlined by McDonald's Corp. to have its U.S. restaurants gradually stop buying chicken raised with human antibiotics over the next two years.

But the company, a key chicken supplier to McDonald's, said in a statement to Reuters that its plans are part of an ongoing effort and "go beyond one customer."

Tyson said it is also forming working groups with independent farmers, company suppliers, veterinarians and others to talk about how to develop ideas to cut the use of antibiotics vital to fighting human infections in its U.S. beef, pork and turkey supply chains.

The working groups will begin meeting this summer.

While veterinary use of antibiotics is legal, controversy has grown over the routine feeding of antibiotics that are important to humans to otherwise healthy chicken, cattle and pigs in a bid to stave off disease and help the animals grow more quickly.

Tyson said it has already stopped using all antibiotics in its 35 broiler hatcheries and has cut human antibiotics used to treat its broiler chickens by more than 80 percent since 2011. The company said it requires a veterinary prescription when antibiotics are used on its broiler farms.

"Given the progress we've already made reducing antibiotics in our broilers, we believe it's realistic to shoot for zero by the end of our 2016 fiscal year," Donnie Smith, president and chief executive of Tyson Foods, said in a statement.

INDUSTRY SHIFTS

Earlier this month, the Wall Street Journal reported that Pilgrim's Pride Corp., the nation's second-largest U.S. poultry processor, would cut all antibiotics from a quarter of its chicken production by 2019.

Rival poultry processor Perdue Farms Inc. told Reuters more than 95 percent of the chickens it produces are raised without antibiotics approved for human use, and more than half are raised with no antibiotics of any kind.

Sandwich chain Chick-fil-A in 2014 gave its producers five years to meet its commitment to go antibiotic-free for chicken. Perdue is a major supplier to Chick-fil-A.

Tyson has been working with livestock drug companies and others to test a variety of alternatives to antibiotics to protect birds, ranging from probiotics to essential oils derived from plant extracts, the company told Reuters.

However, alternatives to human antibiotics are also needed for treating ill birds, the company said. It is providing funds to help accelerate research into disease prevention and antibiotic alternatives to be used on farms.

Tyson declined to say how much the company will spend to buch such funding of livestock pharmaceuticals and alternatives.

Some poultry industry experts say the options for non-human drugs to treat certain diseases in broiler chickens can be limited, and say animal pharmaceutical firms have been slow to invest for the development of new chicken-only antibiotics.

Tyson said it plans to meet its 2017 antibiotic-withdrawal timeline, but there could be some exceptions.

"We won't jeopardize animal well-being just to get there," Smith said. "We'll use the best available treatments to keep our chickens healthy, under veterinary supervision."


Tyson Joins the Flock on Curbing Antibiotics

Chicken growers like Kentucky farmer Brandon Glenn increasingly are raising birds without the use of antibiotics.

Jacob Bunge

Tyson Foods Inc. plans to largely eliminate antibiotics used in human health from its chicken production, a sweeping move that signals how public pressure over health concerns is rapidly changing a decades-old practice in the meat industry.

Tyson, the largest U.S. meat packer by sales, intends to curtail use of the drugs by the end of September 2017, a decision aimed at allaying mounting public-health concerns over drug-resistant bacteria. The company may still use some antibiotics used in human medicine to treat birds that become sick, and its suppliers will continue to administer antibiotics used solely to prevent and treat animal maladies.

“We think this is the most responsible approach to balancing the global health concern and our commitment to animal well-being,” said Donnie Smith, Tyson’s chief executive, in an interview.

Tyson’s plan, announced Tuesday, is among the biggest in a string of actions by meat producers, restaurant chains and retailers to address fears that widespread antibiotics use in both humans and animals is giving rise to dangerous bacteria that have evolved to resist the drugs. Tyson also is exploring similar moves in swine, cattle and turkey.

McDonald’s Corp. last monthsaid it would drop antibiotics that are important to human health from its chicken dishes within two years, following discussions with suppliers including Tyson. Fast-food chainChick-fil-A Inc. last year pledged to stop selling chicken raised with antibiotics of any kind within five years, following earlier commitments by Panera Bread Co. and Chipotle Mexican Grill Inc.


Watch the video: Autogenous vaccines: Use cases and role in bacterial resistance transmission to poultry progeny (August 2022).