Beazley announced average premium-rate increases of around 10% for contract renewals in its Q1 update, boosting profits for the non-life insurer, despite ongoing debate over war exclusions for cyber crime. A $400m fundraising move in late 2022 strengthens the company's hand to allow it to take further advantage of the firm pricing environment. Gross premiums written rose by 12% year-on-year in the first quarter to $1.4bn, propping up expectations of a 15% increase in gross premiums written to $6.1bn ongoing. Beazley's reaching of the mid-teens growth rate aligns with management's guidance.
UK Secretary of State for Business, Energy and Industrial Strategy, Kwasi Kwarteng, has called for greater UK and US collaboration on energy security. Speaking ahead of his address at America's largest civil nuclear conference in Washington DC, Kwarteng emphasised the importance of both countries working together on state-of-the-art technologies and creating the conditions for renewable businesses to thrive. Kwarteng argued that the UK was already demonstrating its energy innovation, citing the country's large offshore wind farms and potential for reviving nuclear power.
Uncertainty over the US debt ceiling is set to continue as traders brace for April inflation data for the eurozone, with European markets predicted to open lower. UBS Group AG is poised to release its financial statement detailing the $17bn hit it took from the takeover of Credit Suisse Group AG. Meanwhile, BlackRock is requesting its staff return to the office at least four days a week as pandemic restrictions are lifted globally. The recession in Japan has lifted as the country rebounds post-pandemic to offset global economic challenges, while Warren Buffett increased his influence in Capital One Financial Corp.
The future of VistaJet is under scrutiny, with industry insiders concerned that the private jet business may be carrying too much debt. The Swiss-based carrier has more than $4.4bn of debt on its books and has made losses of $436m over the past four years, according to company disclosures. It has also spent billions buying premier planes from Canadian manufacturer Bombardier. VistaJet’s founder, Thomas Flohr, has defended the firm’s profitability, citing conservative accounting practices that register non-cash items like depreciation, as net losses. He said Vista is highly profitable based on earnings measured before tax, interest, depreciation and amortisation.
Smaller Chinese consultancy firms are predicted to gain from the country's increasing demand for expert knowledge, particularly after the shock delivery of the Beijing crackdown on firms supplying too sensitive information for Chinese consumption. Many of these firms are now working to reduce risk. For the long-term, the sector will become more regulated, becoming more popular for investors and firms who need greater insight into China. US-based Frost and Sullivan has predicted the Chinese market for expert information will grow from $1bn in 2015 to $1.9bn by 2025.
Stellantis, which makes models including Citroen, Vauxhall and Peugeot, has urged the UK government to renegotiate its current Brexit deal with the EU threatening the sustainability of its UK manufacturing plants. The carmaker warned that its UK manufacturing operations are under threat from the strict terms of the post-Brexit free trade deal. Stellantis has committed to making electric vehicles at its plants in Ellesmere Port and Luton, which employ around 2,000 people combined. If its electric vehicle manufacturing becomes "uncompetitive and unsustainable," the company warned it would have to close British operations.
Tencent Holdings will cut prices for cloud services by up to 40% from June amid similar moves from rivals that have plunged the sector into a price war. Alibaba Group Holding will slash prices for some cloud products by up to 50%. State-owned China Mobile also joined Tencent on Tuesday in announcing cuts, saying prices for some services would be reduced by up to 60% for a limited time.
Climate Asset Management appoints Berg as chief executive
Reuters
23-05-17 09:11
Climate Asset Management (CAM) has appointed Martin Berg as CEO, effective 1 May, replacing Christof Kutscher, who will advise the firm. The joint venture between HSBC’s fund arm and investment and advisory outfit Pollination is focused on “natural capital” and invests in projects that help restore biodiversity and boost the supply of carbon credits. CAM raised $650m in December and manages Apple’s Restore Fund, which invests in projects that remove carbon emissions from the atmosphere. Berg previously worked at the European Investment Bank and Bank of America Merrill Lynch.
Euro zone inflation rose to 7% in April and is expected to remain high amid increasing wage pressures, driven by rapidly rising services costs and energy prices. The European Central Bank has already raised interest rates by 375 basis points since last July to address the issue. A further increase may now occur in order tackling expectations of higher wages in 2022 and preventing inflation from becoming entrenched in the economy.
Pricey cottage rentals may be making labour shortages worse in Ontario beach towns
CBC
23-05-17 09:00
As tourist towns across Ontario see a surge in customer demand ahead of the summer season, many businesses are struggling to find and hire low-wage staff. A report from the Ontario Chamber of Commerce found that 69% of tourist businesses have difficulty recruiting and retaining workers. Meanwhile, the price for seasonal accommodations have been increasing due to soaring demand, leaving business owners little choice but to offer higher wages in order to attract a workforce. Furthermore, the town’s aging stock of cottages, usually favoured by seasonal workers for their cheap rents, are being bought in ever-greater numbers by investors intent on converting them into trendy short-term rentals.
Whirlpool of India reported a 25% drop in quarterly profit for the fourth quarter due to weak demand for its air conditioners, leading to declining sales and lower profitability. The company reported a consolidated net profit of INR626.8m ($7.7m) versus INR838.2m for the same period a year ago. Meanwhile, total revenue fell 2% to INR16.73bn, missing analysts' estimates of INR18.12bn and logging a second quarter of decline, while total costs rose 1% to INR16.25bn.
Labour bosses at Thyssenkrupp have asked Berlin to help fund an environmental project with €2 billion ($2.2 billion). They warned that reducing subsidies further could have devastating consequences for the project. There needs to be a committed decision to avoid companies stopping investments or shifting in other directions.
The UK government has requested that the EU delays a rule in its Brexit trade deal relating to manufacturing, which has threatened the continued manufacture of electric vehicles in the country. Vauxhall’s parent company, Stellantis, warned that it would be unable to make EVs in the UK without changes to the rules, including one that requires 45% of an EV’s value to originate in the UK or the EU to qualify for trade without tariffs, by January 2024. The British government has requested the deadline be delayed until 2027 to avoid the UK being hit by a 10% tariff.
New data from the US Commerce Department reveals that homebuilding increased in April by 1.6% to a seasonally adjusted annual rate of 846,000 units. This is good news for the US housing market but the devil is in the details as figures from March were revised down to show a fall in homebuilding to a rate of 833,000 units rather than an increase to a pace of 861,000 units as previously reported. There are fears that tightening credit conditions may make it more difficult for builders to access funding for new projects.
Linda Yaccarino, a veteran media executive and former chairman of NBC Universal Advertising and Partnerships, has been named CEO of Twitter, replacing Elon Musk. Musk, who is still executive chair and owner, will retain the CTO role, where he will oversee product technology and system operations. The move is expected to help Twitter recover from a period of turmoil during Musk's six-month tenure, when many of the company's top advertisers left because of concerns about offensive or toxic content, as well as layoffs within the company's ad and safety teams. Yaccarino's extensive advertising experience means she is expected to attract more top advertisers to the platform, but she may struggle with Musk's outspoken opinions as Twitter's most followed user. Yaccarino's remit is unclear, and top talent in tech may be reluctant to join the company, given Musk's history of upending Twitter's culture and cutting staff.
The Duke and Duchess of Sussex were involved in a "near catastrophic car chase" involving paparazzi photographers. Kensington Palace has issued a statement condemning the "relentless pursuit”, which lasted over two hours and resulted in multiple near collisions involving other drivers on the road, pedestrians and two NYPD officers. The trio were forced to seek refuge in multiple police stations as they tried to lose the photographers. The couple had been attending an event in New York.
Brazil's antitrust regulator Cade has recommended that L'Oreal's acquisition of Natura & Co's Aesop brand be approved. L'Oreal agreed to buy Aesop for $2.53bn last month. The deal is considered definitively approved within 15 calendar days of its publication, providing no appeals are made.
Labour leader Sir Keir Starmer has pledged to tackle the Nimbys, or "blockers", preventing the construction of new housing and infrastructure, warning that growth cannot be achieved without changes to planning rules. He said too many projects were stymied by those "who more often than not enjoyed the secure homes and jobs that they're denying to others". He called for changes, including national housing targets for councils, to speed up the construction of wind farms and development in some green belt areas. Sir Keir also promised to allow local communities to choose where developments take place.
Meta Platforms Inc, the parent company of Facebook, is reportedly set to receive a record-breaking fine from the European Union (EU) related to data transfers of EU users to US servers, due to the firm’s failure to comply with a warning from the EU court. According to two unnamed sources, the fine will be higher than the previous EU record of €746m ($821.20m) imposed on Amazon. Irish Data Protection Commissioner Helen Dixon and other EU regulators have been finalising a ban on Facebook’s European data transfer tool over concerns regarding US intelligence agencies’ access to this data.
FTX founder Sam Bankman-Fried is reportedly hoping that a recent US Supreme Court decision on the scope of fraud prosecutions will help his legal case after facing charges linked to the collapse of his cryptocurrency exchange. However, many lawyers are predicting that it will not make much difference and Bankman-Fried's chances of having charges dropped remain slim. Bankman-Fried has requested that most of the charges be dismissed, arguing that some were based on a theory of fraud centered around depriving a victim of economically valuable information rather than tangible property.
