Glencore sued over police
Peruvian villagers suing miner Glencore PLC are to argue in London’s High Court next week that the company should be held liable over their allegations they were abused by Peruvian police, the law firm representing them said on Tuesday. The allegations, to be presented in a 10-day hearing that starts on Monday next week, illustrates potential legal risks for mining companies that sign pacts with Peruvian police for the provision of security services at their operations. The lawsuit by 22 Peruvians said that Xstrata PLC, acquired by Glencore in 2013, failed to take reasonable steps to prevent abuses by police in deadly protests at the Tintaya copper mine in 2012, London law firm Leigh Day said.
Blackstone aims for US$800bn
Blackstone Group LP could double its assets under management to US$800 billion in five years, chief executive officer Steve Schwarzman said. “We have internal targets, plans, aspirations to basically double where we are which would take us to US$800 billion,” Schwarzman said in Bloomberg TV interview in Riyadh yesterday. When asked whether the New York-based asset manager could be a trillion dollar fund, he said: “That’s possible.” Schwarzman, 70, said last week that he expects Blackstone’s assets to continue rising in the fourth quarter of the year.
Sanofi to sue over patent
French drugmaker Sanofi SA said it is suing a US pharmaceuticals company for allegedly infringing the patent on its key insulin treatment as sales of its diabetes drugs are falling. Sanofi’s Lantus insulin drug, a major source of revenue for the French group, is no longer being reimbursed by several top US health insurance companies which have switched to a cheaper competitor. That pushed sales of the French group’s diabetes treatments down by 12 percent in the second quarter of the year. Sanofi said in a statement late on Tuesday that it is suing US-based Mylan for alleged infringement of 18 patents.
FOOD AND BEVERAGE
McDonald’s earnings strong
McDonald’s on Tuesday turned in another strong round of earnings following heavy promotions in the US as it ramps up tech-focused home-delivery and mobile-pay initiatives. The fast food giant scored a solid 6 percent jump in global comparable sales, fueled by gains in several key markets, including the US, China, Britain and Canada. “We’re building a better McDonald’s and winning back customers,” said chief executive Steve Easterbrook, who was appointed in 2015 and has been credited with turning around the chain, and dousing worries about rival chains and growing consumer enthusiasm for healthier fare.
Equis Energy acquired
Investment fund Global Infrastructure Partners agreed to buy Equis Energy, a Singapore-based developer of renewable power projects, for US$5 billion including debt, an industry record. The deal includes US$1.3 billion of liabilities and is expected to close in the first quarter of next year, the companies said in a joint statement yesterday. Equis Energy’s portfolio of assets includes solar, wind and hydroelectric power operations in Australia, Japan, India, Indonesia, the Philippines and Thailand. Renewable power is attracting more investor interest as governments throughout Asia seek alternatives to fossil fuels to meet rising energy demand.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to
The US stock market has been on a tear, yet the country’s economy is in the dumps. So why do so many people believe — undoubtedly incorrectly — that the stock market has decoupled from reality? The economy many people experience, while bleak, is local, personal and, for the most part, either not publicly traded or plays only a small part in the stock market’s moves. To explain why these personal experiences have so little effect on equity markets, we must look more closely at the market role of the weakest industry sectors. The surprising conclusion: The most visible and economically vulnerable