Shake Shack has appointed an independent director in partnership with activist investor Engaged Capital, averting a potential proxy battle. According to reports, the investor, which owns around 4.36% of the restaurant chain, had planned to contest three board seats in a bid to double the company's profitability within two years. Shake Shack is said to have named Jeffrey Lawrence, former CFO of FIGS and Domino’s Pizza, as an independent director. It has also agreed to add another director with a background in restaurant operations, while Engaged Capital will support the entire board slate at the company's annual meeting in 2023.
Despite signs of slowing fuel consumption and massive releases from the strategic reserve, US petroleum inventories, particularly gasoline and diesel, remain low for the time of year with prices staying firm. Total inventories have fallen in 105 of the last 148 weeks by a total of 521m barrels since July 2020. This means futures prices for gasoline and diesel have risen faster than crude since May. The lower inventories are supporting prices irrespective of a deteriorating economic outlook, but if economic growth accelerates and fuel consumption follows suit, inventories will continue to shrink, tightening the market.
Baidu CEO Robin Li has said that the company's artificial intelligence-driven chatbot will be able to avoid "hallucinating" on sensitive topics due to its experience "tailoring its search engine to Chinese regulatory requirements". The bot, akin to OpenAI's GPT, is waiting for government clearance before launch. The firm, which has more than 20 years' experience operating search in China and working with regulators, is well positioned for forthcoming draft measures aimed at managing services driven by generative AI, said Li.
Mexican President Andres Manuel Lopez Obrador said that talks on the sale of Citibanamex, Citigroup’s retail bank, to mining and transport conglomerate Grupo Mexico are "going really well". The bank was first put up for sale over a year ago as part of Citigroup's efforts to simplify its global business. Grupo Mexico is thought to be in advanced discussions over a $7bn deal that would leave Citi with 10% of Banamex.
Comcast is expected to sell its 33% stake in streaming platform Hulu to Walt Disney early next year, according to CNBC, citing Comcast's CEO Brian Roberts. Disney said in 2019 it would take full control of Hulu in a deal with Comcast that gave either firm the leeway to engage a sale or purchase of the stake as soon as January 2024. Roberts suggested the final price would be higher than the valuation set in 2019. Disney confirmed plans to launch a new app this year combining Disney+ and Hulu content.
The US Justice Department has charged a former Apple engineer with trying to steal the firm's autonomous driving technology and then moving to China. It was one of five cases announced on 21 November, designed to counter the illicit acquisition of US technology by countries that included China and Russia. The charges, the first announced by a special “strike force” established in February, come amid growing concern that foreign nations are gaining access to sensitive technology.
German exports to countries bordering Russia have surged once again in Q1 2016, carrying concerns that such a rise could help Russians get around sanctions put in place over Moscow's action in Ukraine. The value of German exports to Russia fell by 47% in January to March compared with a year-on-year period, reflecting trade replacements with the European Union and other Western entities. Experts are keen to ascertain how much the increased trade represents sanctioned goods ending up in Russia, sold on by traders from neighbours, with Group of Seven leaders set to strengthen measures against Russia this week.
Ed Wehle, a senior technology banker at Barclays, has resigned to join Citigroup in New York. Following an investment banking career spanning three decades, Wehle will become Citigroup's global head of technology services. The move marks a return to Citi for Wehle, having previously worked for the company before joining Barclays in 2018 from Deutsche Bank.
Lithium Americas Corp has cleared an obstacle in the development of the Thacker Pass mine project in Nevada, after the US Department of the Interior found nearly all of the site contained lithium. Claims had previously been made that the project would cause unnecessary harm to the environment and be blocked due to the land it was on not containing valuable minerals, although officials found that over 98% of claims held by the Canadian mining company contained lithium mineralisation. The ruling will enable Lithium America to build and develop the project, which it is working on with General Motors.
US Attorney for Massachusetts, Rachael Rollins, will resign by the end of the week following an ethics investigation by the US Justice Department's inspector general's office. The investigation was prompted by Rollins' appearance at a Democratic National Committee fundraiser and ultimately focused on issues including her travel and her use of her personal cellphone for official business. No public statement has been made about the results of the investigation.
Chinese online brokerages Futu Holdings and UP Fintech are to remove their apps from the mainland China market over data security and capital outflow concerns from Beijing. The delisting, set for this week, led to losses in the companies' New York-listed shares. In 2021, regulators had already warned unlicensed online brokerages against serving Chinese clients via the internet. While neither start-up plans to affect existing clients in mainland China, the delisting will eliminate easy access to trading securities, particularly in global markets such as the US and Hong Kong, for China's retail investors.
The backers and protesters of former Prime Minister Imran Khan who attacked state assets and military facilities in Pakistan after his arrest on 9 May will be tried under army laws, the country’s military and civilian leaders have said. Critics have claimed that the move will allow the Pakistani army, which has repeatedly launched coups in favour of the military, to intimidate dissenting voices. Hundreds of thousands of supporters of the ruling Pakistan Muslim League-Nawaz party marched in a show of strength in Lahore yesterday, ahead of elections due later this year.
Japan's economy expanded by an annualized 1.6% in Q1 2022, beating expectations for a 0.7% increase and marking the first expansion in three quarters. The rebound was driven by a surge in consumption as the country reopened from the pandemic, but the economy is facing headwinds from slowing growth among other major economies. Uncertainty over the outlook is also complicating the issue of how soon the Japanese central bank can start phasing out its stimulus program. However, capital expenditures were up more than expected, offsetting some of the drag from external demand.
Hundreds of people have been feared dead after the Cyclone Mocha hit Myanmar, including Rohingya Muslims, as rescue efforts remain hampered by damage to infrastructure. The region has a large population of Rohingya Muslims, a persecuted minority that successive Myanmar governments have refused to recognise. Myanmar has been gripped by political and economic chaos since the military overthrow in a coup in 2021. The storm was the worst since Cyclone Nargis swept across parts of southern Myanmar killing nearly 140,000 people in 2008 while being one of the few times the region has experienced a storm of cyclonic strength.
A Group of Seven summit is expected to face significant tensions on the issue of nuclear disarmament. Many atomic bomb survivors in Hiroshima fear that the summit may be the last time that world leaders will call for disarmament. For those in the West, Russia's invasion of Ukraine has reminded them of the important role played by nuclear deterrence. The summit is also expected to discuss ways of curbing nuclear programmes in Iran and North Korea. Barack Obama, the last US President to visit Hiroshima, chose the city as an opportunity to express his hope for a world without nuclear weapons.
Stellantis, which makes cars under brands including Vauxhall, Fiat, Citroen and Peugeot, has warned that Brexit trade rules threaten the UK's automotive sector. The company said it had invested in the UK because it was meeting the strict criteria of the post-Brexit trade deal. However, it is no longer able to meet new rules on where parts are sourced, causing costs to rocket. To cut costs, the firm plans to move production out of the UK unless rules are revised by December. In 2024, 45% of EV components must come from either the UK or the EU to qualify.
President Joe Biden cancelled his upcoming visit to Papua New Guinea and Australia to avert a potentially catastrophic debt default. Biden was due to visit the Quad leaders in Sydney on May 24, bringing together the United States, Australia, Japan, and India. The United States could begin defaulting on its debts "potentially as early as June 1," Treasury Secretary Janet Yellen said Monday, while nonpartisan Congressional Budget Office has forecast June 15.
Russian missile strikes on May 16 may have damaged the US-made Patriot missile defence system, which is currently used by Ukraine, according to two anonymous US officials. Though the system has not been destroyed, the two countries are reportedly discussing the best way to repair it without having to remove it from Ukraine. The alleged damage follows a warning from Vladimir Putin to target and destroy anti-missile defence systems supplied by the West to Ukraine. The Patriot system is designed to counter a range of threats, from ballistic missiles and cruise missiles to aircraft.
Russia has been ramping up the number of missiles it fires in order to confuse and overwhelm Ukraine’s air defences. However, according to one US official, this may have worked to Ukraine’s advantage as it forced Russia to go through more of its limited supply of precision weaponry that can home in on targets. Meanwhile, Ukraine’s President Volodymyr Zelensky spoke at a summit of the Council of Europe, where he said that recent battlefield successes showed that Ukraine could achieve anything as long as it was united. These included shooting down 18 Russian missiles overnight, including a volley of six Kinzhals, which Russia claims have hypersonic capabilities.
North Korean leader Kim Jong Un has visited a military satellite facility and approved an unspecified "future action plan" aimed at launching the country's first military intelligence satellite, according to the country's state-run Korean Central News Agency. The launch would have to use long-range missile technology, which is banned by UN Security Council resolutions. The visit was Kim's first public appearance in a month. Some analysts predict the launch could happen in the coming weeks. Japan's military has ordered troops to get ready to shoot down satellite fragments that may fall on its territory.
Southern Europe is headed toward a summer of intense drought, with parts of the region already experiencing water shortages and farmers expecting the worst yields in decades. Climate change has contributed to multiple years of drought in the area, leading to a depletion of groundwater reserves. Struggling Spain is seeking EU assistance, with Agriculture Minister Luis Planas sending a letter on April 24 requesting the aid. France experienced its driest winter since 1959, while Portugal is already suffering the impact. Italy faces a 70% deficit in snow water reserves and a 40% shortage of soil moisture.
