Kensa Group, a green energy company based in Cornwall, plans to install 50,000 heat pumps in UK homes each year with the help of a £70m investment from Octopus Energy and Legal & General. This represents the largest investment so far in heating devices, according to Kensa. The funds will be used to increase the deployment of ground source heat pumps, which are being promoted by the UK government as an eco-friendly alternative to gas-fired boilers. The government hopes to have 600,000 heat pumps installed each year by 2028, but uptake of the £5,000 and £6,000 grants has been low.
Dubai Chambers has established the Dubai Centre for Family Businesses to provide assistance to family businesses in the emirate on leadership transition, planning and growth, according to a statement. Family firms contribute about 60% of Dubai's gross domestic product and up to 80% of its workforce. Chairman Abdul Aziz Al Ghurair said the centre, a nod to the region's emphasis on family legacies, is crucial for ensuring not only the strength of Dubai's private sector, but the prosperity of the families that built and run those businesses. The chamber is also planning a family business dispute centre to resolve conflicts out of court.
Italian gambling firm, Lottomatica, confirmed its 2023 guidance and reported higher Q1 net profit and revenues. Net profit rose from €34.6m ($38.1m) to €46.4m and revenues increased from €355.7m to €424.8m. Lottomatica is selling €1.115bn in bonds due in 2028, the proceeds of which will fund the redemption of notes due in 2025 and fund costs relating to its recent listing.
Treasury Secretary Janet Yellen warned that a US default on government debt would have catastrophic consequences, potentially leading to a recession that destroys businesses and jobs. Yellen also cited possible disruptions to government operations, including law enforcement and national defense, and potential financial market crashes.
Here’s a list of April inflation rates for selected Canadian cities
The Toronto Star
23-05-16 13:09
Canada's annual inflation rate was 4.4% in April according to Statistics Canada. The agency also released inflation rates for major cities across the country, but warned that figures may have fluctuated widely as they are based on small statistical samples. Inflation rates varied from 3.1% in Iqaluit to 5.8% in Saskatoon and Whitehorse.
A group of US senators has proposed the Taiwan Tax Agreement Act of 2023 that would permit tax breaks for Taiwanese investors. The senators said that this will help to increase investment between the US and Taiwan by removing the double-taxation currently in place in relations between the countries. Offering tax relief could inspire further Taiwanese tech firms to move to the US to set up shop, including the construction of a TSMC $40bn plant in the state of Arizona. According to data from the Ministry of Economic Affairs in Taipei, Taiwan invested $23.73bn in the US between 1952 and 2022, the second highest amount after mainland China. Analysis from experts suggested that this move would increase economic, capital, and personnel mobility between the two countries, disrupting China's chip-making lithography machines and shifting the focus into tech collaboration and development based around US-led tax-friendly policies.
BlackRock, the world's largest money manager with over $8tn under management, has told its employees they must return to working in the office for at least four days a week from September. The shift towards the move from remote work is reminiscent of the pre-pandemic norm as leaders of large companies are seeking to restore the energy of the past and grow the new generation of leaders within their organisation. The new policy follows JP Morgan's recent announcement telling its senior bankers they had to return to the office for a full five days.
Taco Bell has filed a petition with the US Trademark Office to cancel rivals' 'Taco Tuesday' trademarks, owned by Gregory's Restaurant & Bar in New Jersey and Wyoming-based Taco John's, in order to "liberate the phrase for restaurants nationwide". Taco Bell called the trademark use monopolisation in the statement "Nobody should have exclusive rights in a common phrase", adding that they are is not requesting money damages or its own "Taco Tuesday" trademark, but "simply seeks common sense for usage of a common term." Taco John's representatives have not responded to the request for comment and the Trademark Office denied LeBron James' application for a "Taco Tuesday" trademark in 2019.
The aides of President Joe Biden and Republican House Speaker Kevin McCarthy are discussing tightening work requirements for low-income Americans' food and other programs ahead of a debt ceiling meeting. The discussion has been primarily centered around the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF). Tightening work requirements for low-income programs has been demanded by Republicans who are pushing for federal spending cuts before raising the government's debt ceiling of $31.4tn. However, the proposal would face opposition from Biden's Democratic party, who have already shown their disagreement with an idea they consider cruel. The federal SNAP program helped 41.2 million Americans pay for food and groceries in 2022, costing taxpayers $119.4 billion.
Texas Attorney General Ken Paxton has launched a lawsuit against Hyatt Hotels Corp for allegedly breaching the state's consumer protection laws by misleading contract terms and charging hidden fees. Hyatt allegedly omitted mandatory fees from its advertised hotel room rates to prevent fare comparison among consumers. Paxton accuses Hyatt of fraudulent activity that financially damaged customers.
Japan's GDP figures for the first quarter are set to be the highlight for Asian markets on Wednesday, with expectations of annualised growth of 0.7%, the fastest rate in three quarters, leading to Tokyo stocks opening up 0.2%. China's weaker than expected economic data for April has resulted in slumps across Chinese financial assets, with April house prices also due on Wednesday. Although offshore investors have a new scheme to link Hong Kong with the mainland in order to access interest rate derivatives to help hedge their Chinese bond exposure, concerns about debt demand have cast extra doubt over the yuan's ability to gain reserve currency status.
U.S. transport company Norfolk Southern has been hit by a proposed class-action after investors claimed it violated disclosure requirements by hiding safety risks that resulted in the February 2021 derailment of a train carrying hazardous chemicals in Ohio. The action alleges the firm is liable for touting its safety approach in offering prospectuses and playing down the risks of Precision Scheduled Railroading, which sees trains becoming longer and increasingly heavier. Bondholders said the failure to provide sufficient disclosure made it a "speculative or risky" purchase, which led to prices falling, the lawsuit argued. There are nearly 30 companies listed as defendants, including underwriters for the bonds and Norfolk Southern board members and executives. The case was brought by pension funds in Ohio and Michigan, with the class action seeking to cover investors with $4.75bn of Norfolk Southern senior notes and bonds spanning eight offerings from August 2020 to January 2023.
Tesla CEO Elon Musk has been accused of sparking anti-Semitic sentiment after likening George Soros to the Jewish X-Men villain Magneto and alleging that the billionaire philanthropist "hates humanity". His comments attracted criticism, including from the Anti-Defamation League (ADL), which said Soros was often "held up by the far-right, using anti-Semitic tropes, as the source of the world’s problems”. Documents filed last week revealed that Soros Fund Management had sold its entire $16m allocation of Tesla shares in Q1 2023.
Apple has launched a service in Australia allowing iPhone users to take credit and debit card payments at point of sale. Working via Apple Pay, the service enables businesses to effectively use iPhones as payment terminals, downloading an app from a bank or fintech partner to enable contactless payments to be taken. In addition to co-operation with ANZ Bank, fintechs Till Payments, Stripe and Zeller have also signed up. Apple Pay has previously led to conflict with banks over its fees and charges.
Federal Reserve President Lorie Logan believes that changing interest rates in "smaller, less frequent steps" can reduce the risk of financial instability caused by US monetary policy. Such a strategy could mitigate the risk of a "non-linear reaction" which could "damage the broader economy". During a Fed discussion, economists debated tightened monetary policies without causing undue financial stress. Logan also suggested that it may be possible to pull the levers of money policy to protect financial stability by adjusting the strategy of monetary policy.
Some Argentinians are struggling to make ends meet as soil inflation rises above 100% and value of the Argentine currency, the peso, plummets. Many citizens are now being forced to combine multiple strategies to make their money go further. One popular tactic is using interest-free credit arrangements offered in shops and supermarkets, and many individuals opt to split larger purchases into several instalments that can be more easily managed. Another approach is to trade with other people who are also experiencing financial hardship, while many Argentinians who are still able to put some money aside are doing their best to convert it into more stable currencies, such as the US dollar. Even relatively low-value purchases can absorb most of a month's disposable income, so some people are instead choosing to spend now rather than trying to save and watching their increasing sums devalue over time.
The Republican Party is clashing with US corporate America as conservatives rally around social issues. Companies have been caught up in the culture wars before, but legislative moves targeting firms represent a new frontier for Republicans who are traditionally allied with big business on matters such as lower taxes and light regulation. Dozens of US states are considering proposals aimed at stopping governments from doing business with financial firms that consider environmental, social and governance (ESG) factors when making investments, moves that have cost BlackRock more than $4bn in customer funds. However, the financial impact of the conservative backlash has been limited so far.
According to reports, multinational banks, including Goldman Sachs and Morgan Stanley, are reportedly scaling back their goals and expansion plans in China due to the "deteriorating geopolitical climate" and the increasingly authoritarian direction of President Xi Jinping's government. In particular, the banks are struggling to compete against China's state-owned enterprises, which are "well-entrenched" in the market, making it difficult for global banks to compete. In the face of slowing growth for its economy, China has introduced the most sweeping changes to its financial services, including full ownership of insurers, banks, brokers, and asset managers by foreign firms.
However, the country's ongoing geopolitical nuances have caused Wall Street firms to become more cautious about the China market; publicly, everyone is saying the same thing - China is still a massive opportunity, and they have no plans of withdrawing, particularly since such considerable money has already been spent. Privately, Wall Street executives told Bloomberg that it's challenging to maintain the confidence of both sides as tensions escalate, which is expected to intensify as the US election cycle approaches.
Many Wall Street giants are considering more drastic job cuts as there is a realization that a fundamental rethink on the world’s No. 2 economy is necessary due to the weakened business climate, fewer opportunities for outsized profits and China's approach to the financial market. While planning to build onshore brokerage, Morgan Stanley is focusing its efforts on its derivatives and futures businesses.
President Biden and top Congressional Republicans met on Tuesday to discuss a deal over raising the US debt limit. Biden has been asking lawmakers to raise the borrowing limit without conditions to prevent a first-ever default that could trigger a devastating recession, but top Republicans are pushing back, demanding sharp spending cuts to address the growing deficit. While both sides expressed hope about reaching a deal, they acknowledged that they have a lot of work to do in a short amount of time, as a failure to raise the debt limit by June 1 would result in the US Treasury running out of money to pay the government's bills. The Republicans have criticized Democrats for not being more bipartisan in their approach, while Democrats have accused Republicans of not being willing to discuss raising revenues. However, there was an overwhelming consensus among those involved in the meeting that defaulting on the debt is simply not an option, as it would cause considerable harm to the country's economy and families.
India's Jindal Steel's Q4 profit down 70% as prices fall, expenses rise
Reuters
23-05-16 22:30
Jindal Steel and Power Ltd has reported a 69.5% fall in quarterly profit due to lower steel prices and higher costs of raw materials including iron; the weak steel prices are also affecting their rival Tata Steel. However, the slump could ease after Pokemon Go fever caused prices for the metal compounds needed to make smartphones jump. Additionally, India's Ministry of Steel is determined to ensure stable iron ore supplies and reduce prices so as to boost profitability for local steelmakers such as JSPL, Tata Steel and Steel Authority of India. The weak global steel prices are mainly due to a China-driven supply glut.
