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TOKYO (Reuters) -Shares of Japan’s Hino Motors, Toyota Motor Corp’s truck and bus unit, slumped more than 6% on Tuesday, after a data-falsification scandal widened to small trucks.

Hino President Satoshi Ogiso said on Monday that during a transport ministry investigation additional misconduct regarding emissions was found that affects more than 76,000 vehicles.

The scandal, which came to light in March, was previously not believed to have impacted the smaller trucks, which have been sold since 2019. The automaker has said it will suspend shipments of small trucks.

The automaker said even though the engine for the small trucks was supposed to be tested at least two times at each measurement point, it was only tested once at each site.

Ogiso said the misconduct was due to lack of understanding of regulations and not intentional.

Shares of Hino dropped 6.2% to 590 yen ($4.29) on Tuesday.

Toyota shares fell 1.8% while the key Nikkei index was down 1.1%.

The data falsification scandal at Hino has now affected all sizes of trucks, bringing the total number of vehicles involved in the scandal to more than 640,000.

The latest small truck shipment stoppage means Hino will be pausing shipment of 60% of its vehicles it makes domestically.

A company-commissioned panel said in a report this month that Hino had falsified emissions data on some engines going back to at least 2003, or more than a decade earlier than previously indicated.

($1 = 137.3800 yen)

(Reporting by Satoshi Sugiyama; Editing by Tom Hogue and Himani Sarkar)

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TOKYO (Reuters) – Japan’s factory activity growth slowed to a 19-month low in August as output and new order declines deepened, amid growing pressure from persistent rises in raw material and energy costs and weakening global demand.

Activity in the services sector contracted for the first time in five months, as a fall in new business raised worries about lacklustre demand at home.

The au Jibun Bank Flash Japan Manufacturing Purchasing Managers’ Index (PMI) fell to a seasonally adjusted 51.0 in August from a 52.1 final in July, marking the slowest expansion since January last year. The 50-mark separates contraction from expansion.

The headline figure was pulled down in the second consecutive month of declines in output and overall new orders. New orders shrank at the fastest rate in nearly two years.

Optimism about conditions for the year ahead underpinned the slightly positive headline figure, the survey showed. Producers only became slightly less optimistic about conditions ahead compared to the previous month.

“August data signalled the second-weakest reading in the composite index so far this year, though the rate of deterioration was only mild,” said Usamah Bhatti, economist at S&P Global Market Intelligence, which compiles the survey.

“Of concern was the amount of new business received by private sector firms, which reduced for the first time in six months and pointed to further weaknesses to come.”

The au Jibun Bank Flash Services PMI Index slipped to a seasonally adjusted 49.2 in August from July’s final of 50.3, contracting for the first time since March.

The au Jibun Bank Flash Japan Composite PMI, which is calculated by using both manufacturing and services, saw a marked decline to 48.9 from July’s 50.2 final.

(Reporting by Daniel Leussink; Editing by Sam Holmes)

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By Rozanna Latiff

KUALA LUMPUR (Reuters) – Former Malaysian prime minister Najib Razak arrived at the country’s top court on Tuesday for the final leg of his appeal to set aside his corruption conviction and 12-year jail sentence over a case linked to the 1MDB financial scandal.

The Federal Court could potentially deliver its verdict on Tuesday or set a new date for its decision. Malaysian prosecutors wrapped up their arguments on Friday, while Najib’s lawyers declined to present their submissions, citing insufficient time to prepare.

Najib arrived just ahead of court proceedings scheduled to start at 9:30 am (0130 GMT). He waved to reporters but did not make any comment.

About a hundred supporters had gathered outside the court, with some shouting “Allahu Akbar” and “Justice for Najib.”

Najib, 69, was found guilty in July 2020 of criminal breach of trust, abuse of power, and money laundering for illegally receiving about $10 million from SRC International, a former unit of state fund 1Malaysia Development Berhad (1MDB).

Najib, who pleaded not guilty, was sentenced to 12 years’ jail and a 210 million ringgit ($46.84 million) fine.

Prosecutors have said some $4.5 billion was stolen from 1MDB – co-founded by Najib as premier in 2009 – in a wide-ranging scandal that has implicated officials and financial institutions around the world.

Najib, who faces several trials over the allegations, has consistently denied wrongdoing.

The ex-premier replaced his legal team just three weeks before his final appeal at the Federal Court began last week.

Najib has said that his right to a fair trial was at risk, after the court rejected multiple requests to postpone the appeal to allow his new legal team to fully prepare.

His previous lawyers had submitted a written petition ahead of the hearings.

In his submissions, Najib listed 94 reasons why he should be acquitted, including that lower courts had erred in some of their findings.

Prosecutors have said Najib was aware that the funds received in his account were proceeds from “an unlawful activity,” and had exercised his position as prime minister, finance minister and advisor to SRC International to obtain the funds.

($1 = 4.4830 ringgit)

(Reporting by Rozanna Latiff; additional reporting by Zahra Matarani; Editing by Kim Coghill)

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WASHINGTON (Reuters) – A bipartisan group of U.S. lawmakers on Monday released a revised version of a bill aimed at making it easier for news organizations to negotiate collectively with platforms like Google and Facebook.

The Journalism Competition and Preservation Act “removes legal obstacles to news organizations’ ability to negotiate collectively and secure fair terms from gatekeeper platforms that regularly access news content without paying for its value,” according to a news release from the lawmakers.

The group includes Democratic Senator Amy Klobuchar and Republican Senator John Kennedy, both members of the Judiciary Committee, and House Judiciary Committee members David Cicilline, a Democrat, and Ken Buck, a Republican.

A previous version of the bill, introduced in March 2021, was opposed by two technology industry trade groups that Meta Platforms’ Facebook, and Alphabet’s Google belong to – the Computer & Communications Industry Association and NetChoice.

The updated bill would cover news publishers with fewer than 1,500 full-time employees and non-network news broadcasters. It would allow them to work together to win better deals from Facebook, Google and other large platforms, according to the news release.

The 2021 legislation would have applied to any print, broadcast or digital news organization with a dedicated editorial staff that published at least on a weekly basis.

(Reporting by Eric Beech; Editing by Chris Reese)

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By Stephanie Kelly

(Reuters) – Oil prices edged up on Tuesday, after Saudi Arabia warned that OPEC could cut output to correct a recent drop in oil futures.

Brent crude futures rose 32 cents to $96.80 a barrel by 0004 GMT, after a choppy session on Monday when they dropped by more than $4 before paring losses to trade near flat.

U.S. West Texas Intermediate crude futures rose 37 cents to $90.73 a barrel by 0004 GMT.

The benchmarks are down about 12% and 8% this month, respectively.

The Organization of the Petroleum Exporting Countries stands ready to reduce production to correct the recent oil price fall driven by poor futures market liquidity and macro-economic fears, which has ignored extremely tight physical crude supply, OPEC’s leader Saudi Arabia said on Monday.

Saudi state news agency SPA cited Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman as telling Bloomberg that OPEC+ has the means and flexibility to deal with challenges.

Meanwhile, Europe faces fresh disruption to energy supplies due to damage to a pipeline system bringing oil from Kazakhstan through Russia, adding to concerns over a plunge in gas supplies.

Limiting price gains, Iran accused the United States on Monday of procrastinating in efforts to revive Tehran’s 2015 nuclear deal – a charge denied by Washington, which said a deal was closer than two weeks ago because of apparent Iranian flexibility.

In U.S. supply, market participants awaited industry data due out at 4:30 p.m. ET on Tuesday. U.S. crude oil and gasoline stockpiles likely dropped last week, while distillate inventories edged up, a preliminary Reuters poll showed on Monday. [EIA/S]

(Reporting by Stephanie Kelly; Editing by Himani Sarkar)

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By Rae Wee

SINGAPORE (Reuters) – The dollar held firm on Tuesday on safe haven flows, while the euro languished around a two-decade low as investors braced for a hard winter in Europe as it grapples with energy supply and broader economic growth concerns.

The euro touched its lowest since late 2002 at $0.9926 overnight and was last barely higher at $0.9939.

Russia will halt natural gas supplies to Europe via the Nord Stream pipe for three days at the end of the month, the latest reminder of the precarious state of the continent’s energy supply.

Heatwaves in the continent have already put a strain on energy supplies and worries are growing that any disruption during winter months could be devastating for business activity.

“Given the current mood, there’s obviously concerns as to whether that’s going to be three days or whether it’s going to be three years,” said Ray Attrill, head of FX strategy at National Australia Bank (NAB).

“Is it really just going to be a three day maintenance or is this just another example of weaponisation of gas supply into Europe?”

The pound was also dragged to a new 2.5-year low overnight, and hobbled near that level at $1.1758 in early Asia trade. The Japanese yen steadied at 137.30 per dollar after touching a one-month low of 137.70.

The Australian and New Zealand dollars were relatively steady, which NAB’s Attrill attributed to market’s attention being drawn to the weakness of Europe’s outlook.

Chief on investors’ minds for Tuesday will be flash manufacturing PMI readings out in the eurozone and Britain later in the day, which will provide further clarity on the growth trajectory for the respective economies.

Investors are also waiting on minutes of the European Central Bank’s (ECB) last policy meeting on Thursday that are likely to sound hawkish even as the continent faces downturn in growth.

The Aussie was last up 0.15% to $0.6689, while the kiwi gained 0.18% to $0.6183. [AUD/]

Elsewhere in Asia, the dollar hit 6.8711 against the offshore yuan, close to a nearly two-year high of 6.8752 hit on Monday.

Against a basket of currencies, in which the euro is the most heavily weighted, the U.S. dollar index stood firm at 108.9, attempting to breach a two-decade high of 109.29 hit in July.

Another reason investors have sought shelter in dollars is the growing risk of a hawkish message from the Federal Reserve’s Jackson Hole symposium, flagged by several officials last week.

“Bonds sold off, led by the front-end,” said analysts at ANZ. “That’s possibly in anticipation that Chair (Jerome)Powell’s speech on Friday is likely to reiterate hawkish messaging.”

Yields on the benchmark 10-year Treasury note have risen about 4 basis points for the week and stood at 3.0201%. Yields on the two-year Treasury note were up around 5 bps to 3.3140% as investors remained on inflation and Fed watch mode.

(Reporting by Rae Wee; Editing by Shri Navaratnam)

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(Reuters) -Germany’s football body has appointed Deutsche Bank AG to lead the possible sale of a package of media rights, Bloomberg News reported on Monday, citing people familiar with the matter.

In June, Bloomberg News reported that the German Football League (DFL) was considering selling as much as 20% of a unit which houses its domestic and international broadcasting rights. It was also exploring other funding options, including loans and other strategic investment ideas, the report had said.

The DFL organises Germany’s two biggest football leagues.

Deutsche Bank will work alongside Japan’s Nomura Holdings Inc, the football body’s longstanding adviser, Bloomberg’s report said on Monday. (https://bloom.bg/3T5LIh2)

The news agency added that about 10 private equity companies were expected to present their strategies for boosting the reach of German football in presentations as early as September, ahead of possible preliminary offers later in the year.

Advent International, Blackstone Inc, CVC Capital Partners, EQT AB and KKR & Co are among the companies that are considering investing, the report added.

The DFL did not immediately respond to a Reuters request for comment, while Advent International, Deutsche Bank, EQT and CVC declined to comment.

Last year, the DFL had scrapped plans to sell a 25% stake in its overseas broadcasting rights after resistance from Bundesliga clubs concerned about private equity firms meddling in their affairs.

($1 = 0.9990 euros)

(Reporting by Jaiveer Singh Shekhawat and additional reporting by Anirudh Saligrama in Bengaluru; Editing by Devika Syamnath)

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(Reuters) – Wall Street futures fell on Monday, setting all three major U.S. stock indexes for a dour start to the week, as investors worried about hawkish signals from Federal Reserve policymakers in the face of slowing economic growth.

A four-week summer rally for the Nasdaq and the S&P 500 snapped last week as megacap growth companies slumped on Friday, with the benchmark 10-year Treasury yield hitting nearly 3% on inflation fears.

High-growth and technology companies such as Apple Inc and Tesla Inc fell 1.5% and 2.1%, respectively, in trading before the bell on Monday.

Lenders JPMorgan Chase & Co and Bank of America fell more than 1% each amid a broader risk-off mood. Banking giants collectively face more than $1 billion in regulatory fines for employees’ use of unapproved messaging tools, including email and apps such as WhatsApp.

The CBOE Volatility index, Wall Street’s fear gauge, rose to 23.10, its highest level in over two weeks.

Focus this week is on Fed Chair Jerome Powell’s speech at a central banking conference in Jackson Hole on Friday for further cues on the central bank’s monetary policy tightening path.

“The market is now going through a digestion phase, triggered by weaker-than-expected economic reports and anxiety ahead of statements and policy indications expected to emerge from the Jackson Hole Economic Symposium,” said Sam Stovall, chief investment strategist at CFRA Research.

“The big uncertainty remains the size of the rate hike at the September FOMC meeting.”

According to economists in a Reuters poll, the Fed will raise rates by 50 basis points in September amid expectations inflation has peaked and growing recession worries.

Traders are also expecting a slightly higher chance of a 50 bps hike over a third 75 bps hike, even as several Fed policymakers have pushed back against expectations of a dovish pivot and emphasized the fight against inflation is ongoing.

Investors will also be looking for details on the central bank’s plans to reduce its nearly $9 trillion balance sheet, a process that started in June.

The Fed’s favored inflation gauge, the PCE price index, will also be released this week.

With recession fears lingering and investors eager for any clues about the economy’s strength, other U.S. data will be closely awaited this week, including flash PMIs, the second estimate of second quarter GDP and University of Michigan consumer sentiment.

At 07:07 a.m. ET, Dow e-minis were down 286 points, or 0.85%, S&P 500 e-minis were down 46 points, or 1.09%, and Nasdaq 100 e-minis were down 193.25 points, or 1.46%.

Signify Health Inc jumped 40.5% following a report on Sunday that UnitedHealth Group Inc, Amazon.com Inc, CVS Health Corp and Option Care Health Inc are bidding to acquire the company.

AMC Entertainment Holdings tumbled 31.5% after peer Cineworld, the world’s second-largest cinema operator warned of a possible bankruptcy filing.

(Reporting by Bansari Mayur Kamdar and Devik Jain in Bengaluru; Editing by Shounak Dasgupta)

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(Reuters) – AMC Entertainment Holdings’ shares tumbled nearly 40% in premarket trading on Monday after UK-based Cineworld’s warning of a possible bankruptcy spooked investors ahead of the American cinema chain’s preferred stock listing.

AMC’s preferred stock will begin trading on the New York Stock Exchange on Monday under the ticker “APE”. The shares will have the same voting rights as common stock and trade as a separate security for now, the company said.

“The AMC distribution of “APE” is somewhere between a stock split and a stock dividend,” said Rick Meckler, partner at Cherry Lane Investments.

“AMC has been on a very fine balancing act between trying to have enough liquidity to meet its debt and not destroying the stock price until its fundamentals would seem to be lower.”

The decline in AMC shares was sparked after Cineworld, which owns Regal cinemas in the United States, warned that it was staring at a possible bankruptcy filing as it struggles to cut debts that soared during the pandemic.

Retail favorite AMC looked set to hit two-month lows at market open if losses hold, after reiterating on Friday a “relatively weak” film slate in the third quarter of 2022.

“A broader change in how previous cinema-goers want to watch the latest hit is a trend unlikely to reverse or get any easier for cinema chains,” said Sophie Lund-Yates, analyst at Hargreaves Lansdown

The COVID-19 lockdowns severely impacted the business of cinema operators. However, AMC managed to raise $1.8 billion in 2021, capitalizing on the rally triggered by retail investors’ interest in meme stocks, in a sharp contrast to Cineworld’s fate.

AMC shares have jumped over 150% since the end of 2019, whereas Cineworld lost about 99% of its share value in the same period.

(Reporting by Medha Singh, Anisha Sircar and Nivedita Balu in Bengaluru; Editing by Shinjini Ganguli)

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LAS VEGAS, N.M. (AP) — In the foothills of the Rocky Mountains, buzzing chainsaws interrupt the serenity. Crews are hustling to remove charred trees and other debris that have been washing down the mountainsides in the wake of the largest wildfire in New Mexico’s recorded history, choking rivers and streams.

Heavy equipment operators are moving boulders dislodged by the daily torrential summer rains that have followed the flames.

Workers have dug trenches and built barriers to help keep the flood of muddy, ash-laden runoff from causing more damage so it won’t further contaminate the drinking water supply for the community of more than 10,000 that sits at the edge of the forest.

The clock is ticking for Las Vegas, a college town and economic hub for ranchers and farmers who have called this rural expanse of the Sangre de Cristo mountain range home for generations.

It has less than 30 days of drinking water left.

Events have been canceled in an effort to discourage more people from coming to town. Residents are showering with buckets in hopes of salvaging extra water for other uses. Restaurants are worried they may have to cut back on serving their signature red and green chile dishes. The three universities that call Las Vegas home are coming up with conservation plans as the school year kicks off.

“It is disheartening to our families and our children to not know that they may not have water in a month from now,” said Leo Maestas, the city manager.

It was just months earlier that thousands of residents from Las Vegas and dozens of surrounding mountain villages were forced to pack up their belongings, load their livestock into trailers and flee as the wildfire raged, fueled by unprecedented hot, dry winds.

They watched from a distance as an area larger than Los Angeles was devoured by a conflagration sparked by the federal government when two planned burns meant to reduce the threat of wildfire went awry due to a combination of human error and outdated modeling that didn’t account for extreme weather. Hundreds of homes were destroyed and livelihoods lost.

Amid an undercurrent of heartbreak and anger, residents are feeling the sting yet again as their water supply dwindles as a result and the pressures of climate change show no signs of letting up.

“I mean what else could possibly happen?” asked Las Vegas Mayor Louie Trujillo, not wanting to tempt fate.

Trujillo said the community is no stranger to watering restrictions as drought has long been part of life in northern New Mexico. He and other residents have become experts at using just half the water of the average American, or about 44 gallons.

“So asking the citizens to do even more is quite an imposition. It’s very hard,” said Trujillo, as he prepared for federal emergency managers to arrive with another truckload of bottled water for distribution to community members.

Utility managers have been unable to tap into their usual source — the Gallinas River — since it has been choked by ash and debris.

Trujillo declared an emergency in late July and New Mexico’s governor followed with her own declaration, freeing up funding to help pay for the installation of a temporary treatment system that will allow for water from a nearby lake to be used to supplement supplies.

City officials expect that system to be installed next week. It will be capable of treating about 1.5 millions gallons (5.7 million litres) a day, about what the city consumes daily. But it’s only a Band-Aid, Trujillo said.

Like other western cities, Las Vegas is in search of alternative sources of water as nearby rivers and reservoirs shrink amid hotter, drier conditions. The wildfire complicates matters.

New Mexico’s largest city, for example, was forced to stop pulling water from the Rio Grande this year as it dried up within Albuquerque city limits for the first time in decades. And for the second year in a row, Arizona and Nevada will face cuts in the amount of water they can draw from the Colorado River as the western drought becomes more acute.

Las Vegas is hoping the temporary treatment system will slow down the ticking clock as crews continue work upstream to keep more ash, debris and sediment from clogging the Gallinas River that feeds the city’s reservoirs.

Trujillo said a permanent treatment system on the river could cost more than $100 million, far beyond the city’s means. There’s no timetable for designing or building such a system.

What is heartbreaking for the mayor is that the region is experiencing one of the best monsoon seasons in several years. Had it not been for the fire and the contamination, the city would have been able to capture the storm runoff pulsing through the river and bolster its reservoirs for the future as drought persists.

For Trujillo, his neighbors, the governor and members of Congress, the blame for the current water crisis falls squarely on the federal government.

“We’re going to continue to hold them responsible and expect them to pay for all of the improvements that we’re going to have to make,” the mayor said.

Daniel Patterson, a resource adviser with the U.S. Forest Service, called it an all-hands-on-deck approach as the agency works with local officials to protect the watershed that supplies Las Vegas. He acknowledged the Forest Service’s responsibility to restore the watershed as well as people’s access to their private property and traditional practices like gathering firewood from the forest.

“Those are all top priorities right now,” he said. “But it’s a heavy lift and it’s a long haul.”

President Joe Biden flew over the burn scar during a quick visit in June, promising the federal government would step up. Still, many residents feel abandoned.

Danny Lopez, who owns a ranch just outside of Las Vegas, called the past few months a nightmare. The fire charred nearly one square mile of land where he used to graze his cattle. His fences burned and the roof of his home was singed, damage now worsened by the summer rains.

His alfalfa fields have been compromised by the mud, ash and debris rolling off the surrounding hillsides. And with electricity cut off for months, he and his neighbors lost everything they had stockpiled in their fridges and freezers.

His request for aid from FEMA is tangled in red tape, with federal officials requiring something that simply does not exist for many rural properties — a street address.

“They don’t understand the devastation,” said Lopez, who has been forced to reduce his herd by half. “They don’t know how the people live here and how they get by here.”

Charlie Sandoval is the owner of Charlie’s Bakery Café on Las Vegas’ historic plaza. It has served as a gathering spot for the community and travelers for decades, made famous by its homemade chile recipes, fresh tortillas and cinnamon rolls.

It takes as much as 13 gallons (49 litres) of water to make one big batch of chile. Then there’s the water needed for the tortillas and the dough for the pastries.

“Everything that we do just takes water,” Sandoval said. “And it just really scares me. What would happen if we run out of water, you know?”

The bakery is using more plastic and paper items to cut down on dishwashing. But supplies are expensive, and the bottom line is taking a hit.

If more restrictions are imposed, Sandoval worries about how long he can keep the bakery open and what that might mean for his employees.

At the end of July, the city implemented Stage 6 restrictions, meaning no more outdoor watering, no refilling of swimming pools, restaurants cannot serve water to customers unless requested, and no new water accounts can be activated.

For City Manager Maestas, it’s been a sleepless month. More than once he’s jumped into his pickup in the middle of the night and rushed down to check on a diversion point along the Gallinas River. Standing there, he stares down an impossible decision: If the contaminated river rises fast enough post-monsoon, will he direct the flow into town and flood homes? Or will he further pollute the city’s back-up drinking water supply?

Fear, sadness and then anxiety set in. He wants to make the right decision.

“No city official or government official should ever be put in that predicament,” he said.

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