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Nuctech under investigation by EU over Chinese subsidies
Nuctech, a Chinese security firm, was the subject of an EU investigation on Thursday after regulators expressed concerns that it?may? have received Chinese subsidies which could have helped boost its competitiveness in Europe. The European Commission's move follows dawn raids that took place on Nuctech offices in Poland, the Netherlands and Poland in April of last year. This was the first such raid under the EU's Foreign Subsidies Regulation. The EU executive highlighted the measures that?China granted to Nuctech which may be regarded as foreign subsidies. The possible foreign subsidies include grants, preferential taxation and preferential financing. In a recent statement, EU Antitrust Chief Teresa Ribera stated that "Threat detection systems, such as security and inspection scanners at airports and ports, play an essential role in ensuring Europe is both open and secure." She said: "We want to ensure that there are no unfair advantages for customers, competitors or border authorities." Nuctech stated that it would continue its cooperation with the Commission. The company stated that "as a global provider of security inspection solutions?we operate independently and transparently in full compliance with international trade and?competition?rules." "We believe in the impartiality and integrity of the process, and we hope that our actions will be judged on their merits." Nuctech manufactures body and baggage scanners that are used in airports and ports across more than 170 nations. The U.S. Government blacklisted Chinese tech companies in 2020 due to security concerns. Fines of up to 10% of global revenue can be imposed on companies that violate the FSR. (Reporting and editing by Elaine Hardcastle; Editing by Foo-Yun Chee)
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Canada Transport regulator revises pilot fatigue rules in response to industry complaints
Canada's Transport regulator is re-examining its regulations in order to reduce pilot fatigue, due to concerns from the industry that they are too complicated. This is just one of many countries who struggle with rules designed to improve safety. India's aviation regulator has granted IndiGo, its largest airline, a "one-time" exemption from the new rules on pilot night duty, as well as other regulations. This was after IndiGo's poor planning resulted in 2,000 cancellations of flights this month. Transport Canada said on Tuesday that it had been "diligently" reviewing the regulations governing pilots' duty hours and flight times in consultation with air operators and pilots. The regulator stated that since the current rules came into effect in 2018, the industry has expressed concerns about the "complexity" and "inoperability" of the current framework. A global pilot union leader said that India's decision this week to exempt itself from rest regulations was concerning. In Canada, an aviators' union said, "Transport Canada has proposed exemptions to Canada's duty time regulations." The Air Line Pilots Association said that Transport Canada had proposed to allow pilots to work for up to 23 consecutive days, rather than receiving a day off every week. Transport Canada has not commented on the proposed exemptions. Canada and other countries have implemented regulations to improve safety by limiting the number of hours commercial pilots are allowed to fly. Transport Canada announced in 2018 that it would reduce the number of flight 'hours to 1,000 over 365 days from 1,200 and establish a maximum working day between?nine and 13 hours depending on the start time. The previous limit for a commercial airline pilot was 13?hours 45 minutes. According to the new Indian rules, the maximum time that pilots are allowed to fly on flights that extend into the night between midnight and the early morning is limited at 10 hours. In 2011, the United States released new regulations to combat pilot fatigue. An industry group claimed that the regulations would cost the country $2 billion per year and, over time, cut 27,000 direct jobs in the aviation industry. (Reporting and editing by Jamie Freed in Montreal. Allison Lampert is reporting from Montreal.
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Buffett to pass Berkshire baton on to Abel. Abel has a difficult act to follow
Warren Buffett, the founder of Berkshire Hathaway, has been a symbol of Berkshire Hathaway since 1960. He built a conglomerate that is admired by many shareholders and is arguably one of the most respected investors in history. Investors are faced with the fact that Buffett's aura will diminish as he prepares for the handover of the torch to Vice Chair Greg Abel. Abel is the CEO-designate at Berkshire Hathaway and has been since 2004. This change will likely bring more hands-on management from the top of Berkshire’s businesses. Some investors might demand Berkshire to follow a traditional corporate path such as paying dividends. Abel will be appointed CEO of Berkshire on January 1, and has one of the 'toughest acts to follow' in corporate history. Buffett, 95 years old, has been leading Berkshire, Berkshire, since 1965. He will remain chairman. Lawrence Cunningham is a law professor at George Washington University and the author of many books about Buffett and Berkshire. He said Abel had to convince skeptics of Berkshire's ability to thrive without Buffett making the final decision on which stocks and companies to purchase, or giving guidance and wisdom at annual shareholder meetings and letters. Cunningham said, "I didn't expect him cracking jokes or eating peanut brittle during the annual meeting." "His greatest challenge is to tell you that I am not Warren Buffett and you shouldn't be concerned," said Cunningham. Berkshire already has made some changes. Announcing a Management Shake-up Three weeks until Abel takes control. Adam Johnson will continue to run the luxury aircraft unit of?NetJets. Abel will be responsible for overseeing Berkshire's 32 consumer product, service, and retailing businesses. Berkshire promoted Nancy Pierce from her previous position as chief operating officer at Geico to become the new CEO. Todd Combs is replaced Buffett had previously appointed him as one of his portfolio managers. He now joins JPMorgan Chase where he was a director. Berkshire named a new Chief Financial Officer and its first in-house General Counsel. Michael Ashley Schulman of Running Point Capital, El Segundo in California, Chief Investment Officer, said that Abel will be bringing "trusted lieutenants" and "fresh talent" to Berkshire, in order to balance continuity and modernization. BERKSHIRE TRANSFORMED OVER SIX CENTURIES Buffett transformed Omaha-based Berkshire, a textile company that was in trouble, into a conglomerate worth $1.07 trillion. This is the equivalent of a Sherman Tank. Berkshire Hathaway Energy, the BNSF railroad and Geico auto insurance, as well as retail brands Brooks and Duracell are all part of its 200-plus businesses. Buffett's reputation was also built on his ability to pick stocks. He made long-term investments, such as in Apple and American Express. Abel joined Berkshire Hathaway in 2000 and headed Berkshire Hathaway Energy until 2018. He then became a vice chairman of Berkshire overseeing the non-insurance business. "Greg Abel might be more hands-on that Warren Buffett," said Cathy Seifert an analyst with CFRA Research based in New York, who covers Berkshire. "He might sharpen his pencil when it comes to improving operating costs and finding growth strategies. Berkshire may be misleading us when they say that a more hands-on approach is a better strategy for moving the needle than a tighter strategy. Berkshire declined to comment through Buffett’s assistant. Buffett had addressed Berkshire’s future in a letter to shareholders dated Nov. 10, Buffett said. Buffett and Abel did not respond to requests for interviews. How BERKSHIRE may evolve Berkshire stock's performance in recent years has been similar to or behind that of the Standard & Poor 500. Buffett has always tempered expectations of investors. In November, he told shareholders that Berkshire’s businesses have “moderately superior prospects” but the size of the company "takes a toll". Abel has to deal with this size. Abel is a big company with a lot of money. But it's not invested in other areas. Investors are aware that their returns will not be as high as they were in the past. James Armstrong, president of Henry H. Armstrong & Associates, Pittsburgh, who has been investing in Berkshire since 40 years, said: "We won't expect the 23% Buffett earned over decades." You can't achieve that with $1 trillion in assets. "But if Greg Abel makes 8% to 10% per year, I will be happy." Abel may have limited options even with Berkshire cash. Berkshire is complaining about the overabundance of private equity funds that are driving up takeover values. Armstrong said that there was a chorus of people pounding the table and saying, "Invest that cash." "I do not want Berkshire investing that cash until they see a great opportunity at a fair price." Abel has been under pressure from many investors to start paying dividends. Dividends historically contributed 31% of S&P 500 returns. Berkshire is the only company that hasn't paid dividends since 1967. A 2% annual dividend would only cost Berkshire $21 billion. Seifert stated, "I anticipate more shareholders will demand a dividend payment, a better articulated buyback of shares, and a formalized capital allocation strategy." Berkshire may be asked to improve its disclosures, which many analysts find impenetrable and incomplete. Berkshire only devotes a few paragraphs or sentences in its financial report to some of its large subsidiaries. There is no mention made about the overall profitability. Many shareholders do not want Berkshire's unique qualities to be lost. Steve Check, the president of Check Capital Management, a California-based firm that invests 30% in Berkshire stocks and options, said: "We do not want to change Berkshire’s culture." The Voting Power Remains Some questions remain over Berkshire's bench. Ajit Jain (74), who has led Berkshire Insurance operations for 40 years and sat by Buffett?s side, is not sure how long he will continue. Ted Weschler's fate is also uncertain. Like Combs he has also helped Buffett to invest in stocks. Buffett said Abel was capable of handling Berkshire's equity. Buffett controls 29,8% of Berkshire’s voting power and will continue to have a large influence for several years. This could hinder activist shareholders who want to play a bigger role. Check stated that "as long as Warren Buffett continues to work at Berkshire and is chairman, his fingerprints will be on the company." Abel is still young enough to be in charge for a long time and see Berkshire change, even if it can be hard to reinvent. Cunningham stated that "Greg would have a small runway." (Reporting and editing by Megan Davies, Nick Zieminski and Jonathan Stempel from New York)
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Portugal general strike stalls transport, closes schools in labour reform protest
On Thursday, train services were halted across Portugal, hundreds of flights were cancelled and schools were closed. This was in protest at proposed labour reforms. The centre-right minority government claims that the changes proposed - amending over 100 articles of the labour code - are intended to increase productivity and spur economic development. Unions, however, accuse the government of putting employers' interests ahead of workers rights despite an economy that is strong and a low unemployment rate. The far-right Chega Party is expected to support the bill that has yet to be submitted to Parliament. Lisbon's streets are noticeably quieter. Some public transportation was operating due to?minimum service requirements set by the authorities. Although hospitals were open, many surgeries and appointments had to be postponed because nursing staff left. Tiago Oliviera, the secretary-general for the umbrella union CGTP told reporters on a picket line: "We will have a large general strike... We appeal to every worker to use today as a?means of rejecting the labour reform." TAP, the flag carrier, is expected to operate just a third (or about 30) of its roughly 250 daily flights from and to Portugal during this one-day event. FIRST STRIKE AFTER BAILOUT ERA The largest unions CGTP & UGT called the strike, the first since June 2013 when Portugal faced harsh austerity due to an international bailout which reduced wages and raised taxes. The labour reforms envisage easing the just-cause dismissals for small and medium businesses, and lifting limitations on outsourcing. The cap on flexible work rights for nursing mothers is another controversial measure. The government has refused to back down, insisting that the changes will increase Portuguese productivity and benefit everyone. "The government has always been one of dialogue, and it respects the right to strike. It is a government that has a reformist attitude and won't give up on being reformists and transformational," said Prime Minister Luis Montenegro on Wednesday. Some?people who went to work Thursday still said that they had no choice, even though they sympathised the strike. "I do not have a permanent contract." Joao Silva, a 32-year old stationery store employee told the reporter that he could not go on strike. "They want older people fired so that they can hire younger and obviously with lower salaries...Why do (labour change) always have be in favor of company profits?" He said. (Reporting and writing by Sergio Goncalves, editing by Charlie Devereux & Ros Russell; Andrei Khalip)
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Snam, Italy's LNG terminal operator, tightens its grip as imports of liquefied natural gas rise.
Snam, an Italian gas transport company, announced on Thursday that it would buy 48.2% of the terminal for liquefied gas off the coast of Livorno in Tuscany, thereby strengthening its grip on the key infrastructure needed to import the super-chilled fuel. Snam stated that the addition of LNG to Italy's energy supply has been a key tool in diversifying its supplies. In the first nine-month period, LNG imports into Italy? rose by nearly 40% in comparison to the same period of last year. In a press release, Snam CEO Agostino Scornajenchi stated that "this transaction is... critical?in strengthening Snam’s leadership in LNG business.?This today plays a strategic role in guaranteeing Italy’s energy security." It is one of five LNG hubs in Italy. Snam, in addition to OLT and OLT, holds controlling or joint-controlling stakes of all regulated LNG terminals in Italy. It also announced earlier this year that it would establish a new LNG Hub on the Sardinian island. According to the?deal announced on Thursday, Snam (state-controlled) will pay Igneo 126 million euros ($147 million), to purchase 48% of OLT and increase its shareholding to 97.3%. The transaction should be completed in the first half 2026, subject to regulatory approvals.
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IEA: Russia's oil export revenue has dropped to its lowest level since the Ukraine invasion
The 'International Energy Agency' said that Russia's revenue from crude oil and refined product exports fell again in November due to lower export volume and weaker prices, reaching their lowest level since the 2022 invasion of Ukraine. The Russian energy industry, which is vital to the country's economy, is being put under pressure by an increase in drone attacks on oil refineries. Washington increased its pressure against the Kremlin by introducing sanctions in October, targeting Russia's two largest oil companies, Rosneft & Lukoil. The IEA, based in Paris, said that Russia's revenue from crude oil and fuel sales dropped to $10.97bn in November. This is a drop of $3.59bn from the same period a year earlier. The report said that the total Russian oil and fuel exports fell by approximately 400,000 barrels a day, to 6,9 million bpd. This was due to buyers assessing the risks and implications of more stringent sanctions. Urals prices plummeted by $8.2 to $43.52 a barrel. Export revenues fell to their lowest level since the February 20, 2022 invasion. The decline in November was attributed to recent Ukrainian attacks against dark fleet vessels and facilities. The IEA said that Russian oil production fell last month from 9.24 million bpd to 9.03 millions bpd. The output was about?500,000 bpd less than the November quota for Russia set by the Organization of Petroleum Exporting countries?and their allies. This group is known as OPEC+. The IEA said that Kazakhstan's crude supply increased by 120,000 bpd between October and last month to reach 1.81 million bpd, which is 330,000 bpd more than the OPEC+ quota. (Reporting and Editing by Joe Bavier).
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Vietnam asks factories to reduce output as Hanoi chokes with smog
Hanoi's industrial plants are under pressure from authorities to reduce their operation after a week of hazardous and heavy smog in the city. The Ministry of Health in Vietnam urged earlier this week that power, steel and chemical plant outputs should be reduced when the air-quality index is above 200. The air quality index measures the amount of dangerous small particles, known as PM2.5, in the atmosphere. AirVisual's app, which offers independent information on global?air quality, says that the AQI reached 243 at midday Thursday. Hanoi is now ranked fourth?on a list of most polluted cities. According to the app's data, the city topped the list a number of times this week. It also held the top spot in January. Hanoi, the Southeast Asian nation, which is a manufacturing hub that is rapidly urbanising, has suffered from severe air pollution since years. Pham Thu Giang (30), a Hanoi resident, said: "My eyes itch, and the smog blanket always blocks my vision." "I wear a mask every day." Air pollution in the city is primarily caused by transportation, industrial production and construction activities, as well as burning garbage and agricultural residue. Le Thanh Thuy told the local media that gasoline-powered motorbikes were widely used in Hanoi. They are a major source of air pollution. From mid-2026, the city will ban gasoline-powered motorbikes within certain downtown areas. The ban will then be gradually expanded to include fossil-fuel powered cars. Luong Van Toi, 75 years old, said that the current air quality in Hanoi is very dangerous. "I am very tired." If Hanoi's AQI was converted to actual PM2.5 levels, this week's pollution could be up to 50 times higher than the WHO recommended 5-microgram/cu m limit. (Reporting and writing by Thinh Vu, Editing by David Stanway).
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Entain, the owner of Ladbrokes, says that CFO Rob Wood will step down and IDS's Snape will take his place.
Entain, a British gambling company, announced on Thursday that Rob Wood will retire from his roles as Finance?Chief and Deputy?CEO next year after serving the firm for 13 years. Snape is expected to be replaced by Michael Snape, an executive with International Distribution Services (IDS). Snape, who is currently the?group?CFO of IDS, led its recent de-listing, and sale to billionaire Daniel Kretinsky. He has over 20 years of finance leadership experience with large international retailers like?Walgreens Boots Alliance?, Tesco? and Waitrose?. The change in leadership comes just a few weeks after the company revealed a 200 million pound ($267.28million) loss after UK increased taxes on online gambling and sports betting. This put the entire industry under pressure. Wood was appointed deputy CFO in 2018, and took on the role permanently the next year, after Paul Bowtell, the former finance chief announced that he would be stepping down. Entain which owns Ladbrokes, Coral and Partypoker, said that year-to-date trading continues to be in accordance with market expectations, of 1.14 billion pound for FY25.
German coalition agrees on infrastructure fast track, and scraps unpopular heating laws
Friedrich Merz, the German Chancellor said that on Thursday, the ruling coalition had agreed to a new law that would speed up infrastructure projects and scrap clean-heating laws in favor of a more comprehensive law.
Merz, who took office seven months ago as the government of Germany, has promised to revitalize its sluggish, Europe's biggest economy by speeding up projects to improve infrastructure.
The conservative chancellor stated that a variety of transport schemes will be classified as "of overriding public importance" under the new laws, giving them priority in planning and approval procedures.
He said that all administrative procedures would be "digital-only" in order to shorten timelines. The electrification of rail lines up to 60 km (37 miles), for example, will not require an environmental impact assessment.
Merz said at a press conference after the cabinet meeting on Wednesday night that "environmental protection is important, but it cannot block urgently required measures by endless procedures."
Germany has long been praised for its efficient infrastructure, but it is now increasingly criticized for letting this decay because successive governments are reluctant to take on more debt.
Merz's government broke with this fiscal tradition earlier this year, pushing through debt reforms that allowed it to borrow hundreds billions of euro in a fund special. Critics say that some of the fiscal firepower was used to support day-today spending.
Flexibility in?Technology Choices
Merz confirmed that the coalition will scrap a controversial law that mandates most new systems be run mostly on renewable energy.
The measure, which was pushed through by the former centre-left government sparked a backlash among homeowners and opposition parties. It was widely perceived as having contributed to the sharp decline in support for the coalition, and ultimately its collapse.
The revised Building Modernisation Act aims to reduce emissions from buildings, but will give homeowners more freedom in terms of technology and timeframes. The government intends to submit it to the parliament by spring next year.
Merz and his conservative coalition partners, the Social Democrats of centre-left, are in desperate need of some victories after a series political mistakes.
Since the February federal elections, support for both parties has declined. However, in national surveys, the far-right Alternative for Germany is now at the top. (Reporting and editing by Matthias Williams, Gareth Jones and Sarah Marsh)
(source: Reuters)