MELBOURNE (Reuters) -A majority of Rio Tinto's shareholders rejected the global miner's executive pay packages on Thursday, in a backlash over its destruction last year of ancient rock shelters in Western Australia. Rio Tinto blasted 46,000-year-old rock shelters at Juukan Gorge last May to expand an iron ore mine, sparking condemnation from investors, politicians, its own staff and the wider community. Following the company's Australian annual meeting, Rio Tinto said more than 60% of votes cast by investors in the Anglo-Australian dual-listed company were against its remuneration report.
(Bloomberg) -- Technology startup investor Vickers Venture Partners has been caught up in the allegedly fraudulent nickel trading scheme of a Singaporean businessman and his Envy Global Trading, prompting a review by the city-state’s monetary authority.Vickers would be the highest-profile investor yet to have fallen victim to the suspected $740 million swindle, which Singaporean authorities have said could be the biggest investment fraud the financial hub has ever seen. The alleged mastermind, Ng Yu Zhi, has been charged with a range of suspected crimes from faking the purchase and sale of nickel to falsifying transfers from Citibank and account statements that showed millions in funds.Licensed fund managers must have policies to manage risks, including proper checks before investments, MAS said in an emailed response to Bloomberg’s queries on Thursday. “We are performing a supervisory review” of Vickers Venture Partners (S) Pte Ltd. to “ascertain that it has met these requirements.”Vickers Venture’s founder Finian Tan said in a reply to Bloomberg’s query that he was a personal investor in the receivable financing funds floated by Envy Global Trading, which authorities believe involved false contracts. Two Vickers funds were also investors in companies with exposure to the same trade, he said, adding that the initial due diligence process did not raise any red flags.Tan also confirmed that Ng is among investors in a company that made a small investment in Vickers and another company that put a small amount in one of its seven funds. A representative for Ng didn’t immediately respond to an emailed query.Vickers has $953 million of assets under management, including co-investments. Its founder and chairman was an early investor in Chinese technology giant Baidu Inc.“We are expecting this year to be the best ever year for both funds even if we have to write off the RFEGT investments to zero,” Tan said in a statement, referring to the receivable financing investment. “As venture capitalists, we swing for the fences. And when mistakes occur, we should of course try to minimize them.”Tan said his fund’s ability to hit a “home-run” by taking risks has allowed it to produce outsized returns in the past. “If we slow down our swing and can no longer hit home-runs, then we are done for.”The fraud allegations against Ng center on his dealings at Envy Asset Management and Envy Global Trading, companies he controlled and where he was a director. Of the more than S$1 billion ($749 million) that was invested in the companies, S$300 million was transferred to Ng’s personal account while an estimated S$200 million remains unaccounted for, prosecutors alleged in court proceedings last month.While investors received payments worth S$700 million, they’re owed another S$1 billion based on the face value of outstanding contracts, prosecutors said.Singapore’s High Court last week approved KPMG LLP as the interim judicial manager of three companies that are linked to the case.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
LONDON (Reuters) -Carmaker Aston Martin posted a smaller first quarter loss in 2021 of 42.2 million pounds ($59 million) and said it continued to take steps towards profitability, as its sales to dealers more than doubled. That compared with the 110.1 million pound loss the luxury brand posted in the same period last year, when it brought in fresh investment from billionaire Executive Chairman Lawrence Stroll to shore up its finances. The carmaker of choice for fictional secret agent James Bond has had a tough time since floating in 2018, as it failed to meet expectations and burnt through cash.
Air France-KLM sales are showing little sign so far of a travel upturn it still hopes to see by summer, the airline group said on Thursday, as it posted a wider first-quarter operating loss. Air France-KLM said it expects to operate 50% of its pre-pandemic flight capacity in the second quarter under way, ramping up to 55% to 65% in July-September. "We're waiting to see the first effects of vaccination," Chief Financial Officer Frederic Gagey said.
The European Central Bank will take a closer look at bank loans to lightly regulated investment funds and specialised lenders after the spectacular collapses of Archegos Capital Management and Greensill, top ECB supervisor Andrea Enria told Reuters. Regulators have long worried about the rise of so-called shadow banking, or lending by entities outside the traditional banking sector that are not subject to the same scrutiny as the mainstream banks they often borrow from. The area has come under sharper scrutiny following the demise this year of supply-chain lender Greensill and Archegos, a family office run by former Tiger Asia manager Bill Hwang.
(Bloomberg) -- Malaysia kept its benchmark interest rate at a record low Thursday as a fresh surge in coronavirus infections threatens to further delay an economic recovery.Bank Negara Malaysia held the overnight policy rate at 1.75% for a fifth straight meeting, a decision expected by all 21 economists in a Bloomberg survey.“Latest indicators point to continued improvements in economic activity in the first quarter and into April,” the central bank said in a statement Thursday. “While the recent re-imposition of containment measures in select locations will affect economic activity in the short term, the impact will be less severe as almost all economic sectors are allowed to operate.”Still, the statement noted that “the balance of risks to the growth outlook remains tilted to the downside,” due to uncertainty over the course of the pandemic and potential challenges for the country’s vaccine rollout.The decision comes as Malaysia suspended a domestic travel bubble and tightened movement curbs in Kuala Lumpur and in Selangor, its richest state, to contain a surge in infections that has left some hospitals low on ICU beds. Daily cases last week topped 3,000 for the first time since February.The ringgit was largely unchanged on the day at 4.1215 per dollar as of 4:38 p.m. Stocks erased earlier losses to trade little changed on the day.Recent GainsBank Negara Malaysia “spoke about how the current monetary policy stance remains appropriate, and how the virus curbs are less severe than before,” said Wellian Wiranto, an economist at Oversea-Chinese Banking Corp in Singapore. “From those alone, it does not look like a central bank that is laying the groundwork for any cut in the near term.”Further containment measures could undo recent strides the economy has made. The April manufacturing Purchasing Managers Index hit a record high, while March exports registered the strongest year-on-year growth in almost four years. Manufacturing sales rose at their fastest pace in nearly four years in March, while an index of industrial production showed its strongest gains in March since July 2013.What Bloomberg Economics Says...“Downside risks from the pandemic keep the door open for more rate cuts. Our base case, though, remains that BNM will leave its policy rate unchanged this year. This assumes global demand continues to recover, supporting commodity prices and market sentiment. The distribution of Covid-19 vaccines, albeit slow, should help to steadily lower new virus cases, allowing Malaysia’s social distancing measures to be pared back.”-- Tamara Mast Henderson, Asean economistConsumer prices surged to an almost three-year high in March, driven partly by a low base effect from last year, when tight movement restrictions pushed the country into deflation. The central bank expects headline inflation to average 2.5%-4% this year.“The fact that Bank Negara Malaysia (BNM) left its policy rate on hold at 1.75% today despite the worsening economic outlook means any further loosening is unlikely,” Alex Holmes, Asia economist at Capital Economics Ltd., wrote after the decision. “With the recovery set to be slow and fitful, we think BNM will leave interest rates at their current low until at least the end of 2022.”(Updates market levels in sixth paragraph, adds Bloomberg Economics comment in text box.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- The veteran Apple Inc. executive who runs day-to-day operations at the App Store will be playing defense Thursday in the company’s trial with Epic Games Inc.Matt Fischer will be the first Apple employee to take the witness stand as Epic, the creator of Fortnite, tries to convince a federal judge that the marketplace for apps that run on hundreds of millions of iPhones is operated like a monopoly. Trystan Kosmynka, a senior director at Apple in charge of the app review process, is set to be called to the stand later in the day.Despite having a tenure with Apple of almost 20 years and being in charge of a business that’s estimated to generate more than $20 billion in revenue a year, Fischer keeps a low profile: He’s not featured on Apple’s website, he doesn’t appear at Apple product launch events and he rarely speaks publicly. He reports to Phil Schiller, the company’s top App Store executive, who is expected to be called as a witness later in the trial, along with Chief Executive Tim Cook.Topics Fischer may be questioned about by Epic’s lawyers include App Store business strategy, finances, policies and practices, and market power over iOS devices, according to court filings. Kosmynka, who reports to Apple’s developer relations chief, will be asked about the app review process and App Store curation.How Apple’s App Store Sparked an Epic Trial: QuickTakeThe trial in Oakland, California, comes as Apple faces a backlash -- with billions of dollars in revenue on the line -- from global regulators and some app developers who say its standard App Store fee of 30% and others policies are unjust and self-serving.The fight with Epic blew up in August when the game maker told customers it would replace Apple’s in-app purchase system with its own, circumventing Apple’s commissions from add-ons inside of Fortnite. Apple then removed the game, cutting off access for more than a billion customers.Apple, which vehemently denies abusing its market power, has called Epic’s legal gambit a “fundamental assault” on a business model that is beneficial to both developers and consumers.In the first three days of the trial, Epic put on testimony by its CEO, Tim Sweeney, and other executives at the game maker to make the case that the App Store is a like a “walled garden” that has left users and developers “trapped” in an anticompetitive marketplace.Microsoft to Judge: Apple’s Rules Blocked Our Gaming Service TooEpic has also called as witnesses executives from other companies with gaming businesses, including Microsoft Corp. and Nvidia Corp., to show that they, too, have been constrained by onerous App Store rules.Apple has its used its cross-examination of witnesses to try to undercut their credibility and poke holes in Epic’s antitrust claims.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
It expects improved revenue this year from business aircraft activities over 2020 as the vaccination roll-out in the United States, the world's largest market for corporate aircraft, boosts travel demand. A rebound in U.S. business aviation traffic to pre-pandemic levels is expected to help boost growth in higher-margin aftermarket services. Bombardier also disclosed it had been contacted by the U.S. Department of Justice over decade-old airplane deals in Indonesia, widening a separate British corruption probe.
You could be entitled to additional money, based on your 2020 income.
Another than 1.1 million economic stimulus checks worth more than $2 billion are on the way, the IRS said. The payments included "plus-up" checks.
In an interview with Fortune, Alba talked about taking her “fourth baby” (a.k.a. her company) public.
More returns need additional review due to things like the recovery rebate credit.
(Bloomberg) -- Actress Jessica Alba cemented her claim to one of the most lucrative side gigs in Hollywood after shares of her beauty business, the Honest Co., soared 44% in its market debut.The “clean” beauty- and baby-products maker’s stock closed at $23 Wednesday after it priced the shares at $16 in its initial public offering. Alba’s roughly 5% stake is valued at $98 million, according to the Bloomberg Billionaires Index. She also has exercisable options valued at about $24 million.Read more: Alba’s Honest Co. Set for Opening Bell After $413 Million IPO“I feel like I’m in a dream, to be honest. Wow. Is this really happening?” Alba said in an interview with Bloomberg TV. “I’m so grateful to our very loyal community. Thank you for bringing us into your home. Thank you for trusting us with you most precious people, your little people.”Alba, 40, founded the business in 2011, motivated by the dearth of baby products that were free of harsh chemicals. The carbon-neutral company makes diapers, wipes, shampoo and lotions it bills as “clean and natural,” and targets a customer base of parents who are eco-conscious, aspirational and relatively affluent. Honest Co. had revenue of about $301 million in 2020, a 28% jump from a year earlier, and an operating loss of $13.5 million.The Los Angeles-based company is now valued at almost $2.1 billion, or $2.45 billion when fully diluted to include employee stock options and restricted stock units. That’s significantly more than its $860 million implied valuation in a 2017 funding round, according to Pitchbook. Honest has been dogged in the past by product recalls and controversy over its claims to use only natural ingredients. Prior to those issues, it was valued at $1.7 billion in a 2015 funding round.Rare ExampleThe IPO marks an almost 260% return for L Catterton, the private equity firm backed by billionaire Bernard Arnault that invested $200 million in 2018. The company sold about half its stake in the offering.The actress is a rare example of someone successfully bridging a career between Hollywood and Wall Street. While many celebrities strike licensing deals for fashion lines or products such as perfume or vodka, few have gone on to found publicly traded companies.Alba, whose official title is chief creative officer, continues to work as an actor, most recently starring in the crime television series, “L.A.’s Finest.”“I was born into a hardworking Mexican-American family. My parents worked multiple jobs, doing whatever it took to get by,” Alba wrote in a letter included in the company’s prospectus, describing a childhood marked by poor health and hospital stays. “By the time I was ten, I became aware of how wellness can define your whole life. That’s never left me.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Cathie Wood's ARK Innovation exchange-traded fund is significantly oversold and due for a bounce, but if it doesn't come the popular fund risks suffering a “waterfall” decline, says one chart watcher.
The 30-year fixed rate hasn’t been this low since February.
A year into the pandemic, some homeowners say loan servicers aren't giving them clear information about mortgage forbearance.
It appears that Shark Tank investor Kevin O’Leary no longer thinks bitcoin is “garbage.” The chairman of O’Shares ETF told Yahoo Finance Live that he’s allocated 3% of his portfolio to the world’s largest cryptocurrency after his native Canada, and a handful of other countries, eased restrictions on institutional buying of the asset.
In July, the IRS will begin sending monthly payments of $250 or $300 to low- and moderate-income families who qualify for the child tax credit.
(Bloomberg) -- Jeff Bezos sold about $2.5 billion of Amazon.com Inc. stock, his first big disposal this year after offloading more than $10 billion worth of shares in 2020.Bezos sold around 739,000 shares this week under a pre-arranged trading plan, according to U.S. Securities and Exchange Commission filings. He plans to sell as many as 2 million shares, according to a separate filing.The world’s richest person continues to hold more than 10% of Amazon.com, the primary source of his $191.3 billion fortune, according to the Bloomberg Billionaires Index.In the 15 years after Amazon.com went public in 1997, Bezos sold about a fifth of the online retailer for roughly $2 billion. The value of his stake has ballooned in recent years to such an extent that he can now sell relatively small amounts for billions of dollars.Amazon stock is little changed this year after rallying 76% in 2020 as the Covid-19 pandemic kept people away from physical stores and encouraged online shopping.The Amazon founder has used stock sales to fund rocket company Blue Origin, while he’s committed $10 billion to the “Bezos Earth Fund” to help counter the effects of climate change.The rocket maker said Wednesday it has set July 20 for its first mission carrying people to space and plans to auction off one seat on its New Shepard rocket.Bezos would be far richer if it weren’t for his divorce from MacKenzie Scott. She received a 4% stake in Amazon as part of the split and quickly became one of the world’s most important philanthropists.(Updates with Blue Origin plans in seventh paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
A see-through trust is a legal arrangement that enables a person to pass retirement assets from an individual retirement account to beneficiaries after his or her death. A properly-constructed trust protects assets from creditors and can parcel out money to … Continue reading → The post What Is a See-Through Trust? appeared first on SmartAsset Blog.