BlackRock CEO Larry Fink: CEOs pulling supply chains out of China

Companies are moving their supply chains out of China instead of waiting for a resolution of the trade war between Washington and Beijing, BlackRock Chairman and CEO Larry Fink told CNBC on Friday. “We’re hearing from CEOs that more and more supply chains are moving out of China right now, ” Fink said on “Squawk Box.” “People are not waiting, companies are not waiting to see what the outcome is.” Companies began announcing in May that they would move from China to Vietnam, as China and the U.S.


Companies are moving their supply chains out of China instead of waiting for a resolution of the trade war between Washington and Beijing, BlackRock Chairman and CEO Larry Fink told CNBC on Friday. “We’re hearing from CEOs that more and more supply chains are moving out of China right now, ” Fink said on “Squawk Box.” “People are not waiting, companies are not waiting to see what the outcome is.” Companies began announcing in May that they would move from China to Vietnam, as China and the U.S.
BlackRock CEO Larry Fink: CEOs pulling supply chains out of China Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: jessica bursztynsky, matthew j belvedere
Keywords: news, cnbc, companies, chains, supply, trade, vietnam, starting, larry, companies, waiting, moving, blackrock, fink, china, ceos, ceo, pulling, worlds


BlackRock CEO Larry Fink: CEOs pulling supply chains out of China

Companies are moving their supply chains out of China instead of waiting for a resolution of the trade war between Washington and Beijing, BlackRock Chairman and CEO Larry Fink told CNBC on Friday.

“We’re hearing from CEOs that more and more supply chains are moving out of China right now, ” Fink said on “Squawk Box.” “People are not waiting, companies are not waiting to see what the outcome is.”

The trade fight between the world’s two largest economies has been going on for about a year, and businesses are starting to feel the repercussions.

President Donald Trump has slapped 25% tariffs on $200 billion worth of Chinese goods and continues to threaten duties on an additional $325 billion of goods as trade negotiations continue.

More than 50 multinational companies are moving production out of China, including Apple, Nintendo and Dell, CNBC previously reported. Companies began announcing in May that they would move from China to Vietnam, as China and the U.S. stepped up tit-for-tat duties.

Brooks Running — which is part of Warren Buffett’s Berkshire Hathaway — said in May it would be “predominantly in Vietnam by the end of the year,” adding that about 8,000 jobs will move there from China.

At the same, the Chinese economy is starting to lag, having grown just 6.2% in its second quarter. That’s the weakest rate in at least 27 years. Trade data released last week showed China’s June exports fell 1.3% year over year due to the tariffs.

“I do believe the trend in China continues to be downward, ” said Fink, co-founder of the world’s largest money manager. “I think long term, China knows they need to find ways to stimulate more of their domestic economy.”


Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: jessica bursztynsky, matthew j belvedere
Keywords: news, cnbc, companies, chains, supply, trade, vietnam, starting, larry, companies, waiting, moving, blackrock, fink, china, ceos, ceo, pulling, worlds


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How dairy behemoth Danone failed to win India’s 1.35 billion dairy lovers

India is the world’s top producer and consumer of dairy — in 2018 alone, the country’s 75 million dairy farmers produced 410 billion pounds of milk, about 22% of global production. With this and its dairy-heavy diet of curries and yogurt drinks, the giant French dairy company Danone hoped to find success in the country, opening its own production line in 2011. But this division failed to account for more than 10% of its sales in India, the vast majority instead coming from its “specialized nutri


India is the world’s top producer and consumer of dairy — in 2018 alone, the country’s 75 million dairy farmers produced 410 billion pounds of milk, about 22% of global production. With this and its dairy-heavy diet of curries and yogurt drinks, the giant French dairy company Danone hoped to find success in the country, opening its own production line in 2011. But this division failed to account for more than 10% of its sales in India, the vast majority instead coming from its “specialized nutri
How dairy behemoth Danone failed to win India’s 1.35 billion dairy lovers Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: karin shedd
Keywords: news, cnbc, companies, vast, lovers, production, billion, dairy, indias, danone, 135, company, behemoth, success, yogurt, specialized, india, worlds, failed, win


How dairy behemoth Danone failed to win India's 1.35 billion dairy lovers

India is the world’s top producer and consumer of dairy — in 2018 alone, the country’s 75 million dairy farmers produced 410 billion pounds of milk, about 22% of global production. With this and its dairy-heavy diet of curries and yogurt drinks, the giant French dairy company Danone hoped to find success in the country, opening its own production line in 2011.

But this division failed to account for more than 10% of its sales in India, the vast majority instead coming from its “specialized nutrition” segment. Analysts say that India’s highly localized, fractured dairy industry confounded Danone, a company accustomed to the relatively more consolidated dairy industries of the U.S., where it goes by the name “Dannon,” and its native France.

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Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: karin shedd
Keywords: news, cnbc, companies, vast, lovers, production, billion, dairy, indias, danone, 135, company, behemoth, success, yogurt, specialized, india, worlds, failed, win


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New ‘rhino bonds’ to allow investors to help with wildlife conservation

12 October 2018, Berlin: A young black rhino looking at the outside enclosure of the zoo for the first time since birth. Investors will soon be able to buy bonds that aim to increase the population of the endangered black rhino, and reward investors only when the numbers of these animals rise. Black rhino numbers have fallen from 65,000 in the 1970s to about 5,500 presently. Lack of available funding has created barriers to successful attempts of rhino conservation. It covers a total of 700 blac


12 October 2018, Berlin: A young black rhino looking at the outside enclosure of the zoo for the first time since birth. Investors will soon be able to buy bonds that aim to increase the population of the endangered black rhino, and reward investors only when the numbers of these animals rise. Black rhino numbers have fallen from 65,000 in the 1970s to about 5,500 presently. Lack of available funding has created barriers to successful attempts of rhino conservation. It covers a total of 700 blac
New ‘rhino bonds’ to allow investors to help with wildlife conservation Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: spriha srivastava
Keywords: news, cnbc, companies, worlds, species, rhino, help, investors, financial, wildlife, rhinos, bonds, conservation, allow, bond, black, rib


New 'rhino bonds' to allow investors to help with wildlife conservation

12 October 2018, Berlin: A young black rhino looking at the outside enclosure of the zoo for the first time since birth.

Investors will soon be able to buy bonds that aim to increase the population of the endangered black rhino, and reward investors only when the numbers of these animals rise.

The $50 million Rhino Impact Bonds (RIB) will be the world’s first financial instrument working toward the conservation of a species at the risk of extinction.

CNBC takes a look at the concept behind an RIB.

Why rhinos?

Black rhino numbers have fallen from 65,000 in the 1970s to about 5,500 presently. The species is said to be extremely vulnerable to extinction in the wild. According to the Zoological Society of London (ZSL), the most critical threat to rhino populations is poaching for the illegal trade in rhino horn products.

Lack of available funding has created barriers to successful attempts of rhino conservation.

“The reality is that biodiversity is in crisis and there just isn’t enough funding to tackle the issue,” Dominic Jermey, the director general of the ZSL, told CNBC via email Thursday.

“Conservationists are battling to fund basic biological management activities, let alone fund critically needed interventions in response to the illegal wildlife trade being perpetrated by criminal syndicates.”

What is an RIB?

It’s a $50 million bond (a fixed-income investment instrument) with a five-year term and is aimed at growing the numbers of African black rhinos across five sites in Kenya and South Africa. It covers a total of 700 black rhinos that form about 12% of the world’s entire black rhino population.

“The Rhino Impact Bond (RIB) is the world’s first financial instrument for species conservation, transferring the risk of funding conservation from donors to impact investors by linking conservation performance to financial performance,” according to Conservation Capital, the company arranging the bond offer.

The bond, expected to launch in the first quarter of 2020, looks to boost the black rhino population by 10% globally.

How will the bond work?

The $50 million bond is based on an “outcome payments” model — a concept where investors receive financial returns only on the successful and measurable completion of the objective.

Investors will pay an upfront cost for buying the bond and they will be paid back their capital and a coupon if the population of African black rhinos increases in five years. The yield on the bond will be subject to the growth of the rhino population.

“On completion of the five-year term, an independent evaluator verifies whether the RIB target has been achieved: the performance relative to the RIB target determines the investors’ return,” according to a statement from Conservation Capital.


Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: spriha srivastava
Keywords: news, cnbc, companies, worlds, species, rhino, help, investors, financial, wildlife, rhinos, bonds, conservation, allow, bond, black, rib


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Ford’s latest design isn’t an F-150 or Ranger. It’s the world’s first pickup emoji

But the automaker finally unveiled Wednesday the pickup truck in 2016. “It all dawned on us when we were sitting in a room one day ‘jeez there really is no pickup truck emoji how could that be?’ Transportation in general is like 12 different trains and no pickup truck emoji,” said Eric Grenier, Ford’s social media manager. The pickup truck emoji unsurprisingly looks like a Ford. Ford isn’t ruling out other emoji ventures either, Grenier mentioned that the team discovered there was no emoji for a


But the automaker finally unveiled Wednesday the pickup truck in 2016. “It all dawned on us when we were sitting in a room one day ‘jeez there really is no pickup truck emoji how could that be?’ Transportation in general is like 12 different trains and no pickup truck emoji,” said Eric Grenier, Ford’s social media manager. The pickup truck emoji unsurprisingly looks like a Ford. Ford isn’t ruling out other emoji ventures either, Grenier mentioned that the team discovered there was no emoji for a
Ford’s latest design isn’t an F-150 or Ranger. It’s the world’s first pickup emoji Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: elijah shama
Keywords: news, cnbc, companies, worlds, emoji, design, isnt, thing, ford, f150, proposal, truck, ranger, fords, emojis, consortium, unicode, latest, pickup


Ford's latest design isn't an F-150 or Ranger. It's the world's first pickup emoji

It took actor Dwayne Johnson, more than three years and a team of designers and social media managers at Ford to bring its latest design to life.

But the automaker finally unveiled Wednesday the pickup truck in 2016. It’s not its best-selling F-150 or even the popular Ranger.

It’s an emoji.

“Ladies and gentlemen, the moment you’ve all been waiting for, the truck emoji,” Joe Hinrichs, president of automotive operations for Ford, says in a video narrated by actor Bryan Cranston that reveals the design.

The blue pixelated pickup is on a short-list of candidates for new emojis awaiting approval for use in 2020 that’s reviewed by the Unicode Consortium, Ford announced Wednesday, which happened to be world emoji day. The group regulates the unicode characters so they can be recognized across different devices and platforms across the industry.

Unicode Consortium board member Greg Welch said “they can’t discuss a specific emoji proposal beyond confirming that the pickup truck is a current candidate under consideration.”

If approved, the pickup truck would join other Unicode 13.0 entries such as a tamale, a dodo bird, and a smiling face with a tear. The latest update to the list will be released early next year, and Ford said it’s confident the pickup emoji should make it to keyboards everywhere in early 2020.

“It all dawned on us when we were sitting in a room one day ‘jeez there really is no pickup truck emoji how could that be?’ Transportation in general is like 12 different trains and no pickup truck emoji,” said Eric Grenier, Ford’s social media manager. It’s a surprising thing to realize, especially when 5 billion emoji’s are sent everyday on Facebook messenger alone.

The pickup truck emoji unsurprisingly looks like a Ford. The design is modeled after a midsize pickup truck reminiscent of the Ford Ranger with forward tilting lights that echo styling seen on older F-150s. The most Ford aspect of the design though is the color — Ford Blue. They’re touches that didn’t happen by coincidence.

“There are some design elements like that chamform belt line it was obviously F-150 that’s what we’re going to submit — We’re Ford, but we all understand that it is up to all of the platforms to ultimately decide what that thing is going to look like,” said Grenier.

Getting an emoji certified is a fairly straightforward, but long, process. Designs are pitched to the Unicode consortium based on their compatibility, expected usage level, image distinctiveness, completeness and how often they’ve been requested. The consortium then evaluates the proposal and either decides to approve or send the emoji back for tweaks. The whole process takes about two years from design to phone keyboard.

The proposal submitted by Ford doesn’t mention the company by name at all and raises some concern about corporate influence in what’s supposed to be uniform international standards in software development, “The Atlantic ” reported, noting that the consortium wasn’t aware of Ford’s involvement. Other’s emoji’s submitted to the consortium with corporate backing include a condom emoji by Durex and a KitKat emoji from Nestle.

Ford isn’t ruling out other emoji ventures either, Grenier mentioned that the team discovered there was no emoji for a convertible car while working on their pickup truck design.


Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: elijah shama
Keywords: news, cnbc, companies, worlds, emoji, design, isnt, thing, ford, f150, proposal, truck, ranger, fords, emojis, consortium, unicode, latest, pickup


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Bitcoin plunges, briefly falling below $10,000, as Trump slams crypto

Bitcoin fell sharply on Monday, following President Donald Trump’s criticism of cryptocurrencies. “Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity,” Trump added. Nevertheless, bitcoin is still up more than 160% since the start of the year, despite the recent pullback. Elsewhere in the market, ether and XRP — the world’s second and third-largest cryptocurrencies respectively — were also in negative territory. Ether slipped nearly 17% to


Bitcoin fell sharply on Monday, following President Donald Trump’s criticism of cryptocurrencies. “Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity,” Trump added. Nevertheless, bitcoin is still up more than 160% since the start of the year, despite the recent pullback. Elsewhere in the market, ether and XRP — the world’s second and third-largest cryptocurrencies respectively — were also in negative territory. Ether slipped nearly 17% to
Bitcoin plunges, briefly falling below $10,000, as Trump slams crypto Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: ryan browne
Keywords: news, cnbc, companies, value, president, cryptocurrencies, xrp, slams, trumps, bitcoin, fell, plunges, worlds, trump, falling, 10000, briefly, crypto


Bitcoin plunges, briefly falling below $10,000, as Trump slams crypto

Bitcoin fell sharply on Monday, following President Donald Trump’s criticism of cryptocurrencies.

The world’s most valuable virtual currency dropped about 10% to $10,175, according to CoinDesk data. It briefly dived below $10,000, dropping as low as $9,872.

The reason for the downward move wasn’t immediately clear. But it arrives after President Trump said last week that he was “not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air.”

“Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity,” Trump added.

Trump was also critical of Facebook’s plans to create a cryptocurrency, called Libra, which will be pegged to a basket of government-backed currencies and assets to maintain a stable value. Facebook should apply for a banking license if it seeks to become a bank, Trump said.

Some in the crypto space shrugged off Trump’s comments. Brian Armstrong, CEO of the digital currency exchange Coinbase, said it was an “achievement,” putting crypto in the spotlight, while Fundstrat Global Advisors’ Tom Lee called it “positive because cryptocurrencies and bitcoin really are in the main stage now.”

Nevertheless, bitcoin is still up more than 160% since the start of the year, despite the recent pullback. Analysts had attributed the digital coin’s rise largely to news of big companies like Facebook getting involved in the space.

Elsewhere in the market, ether and XRP — the world’s second and third-largest cryptocurrencies respectively — were also in negative territory. Ether slipped nearly 17% to $221 while XRP fell 5% to around 31 cents.


Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: ryan browne
Keywords: news, cnbc, companies, value, president, cryptocurrencies, xrp, slams, trumps, bitcoin, fell, plunges, worlds, trump, falling, 10000, briefly, crypto


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The ‘biggest change in oil market history’ is less than six months away

The rule change is designed to significantly curb pollution produced by the world’s ships. But, starting next year, the shipping industry will have to comply with rules that should dramatically reduce sulfur emissions. “It is the biggest change in oil market history,” Steve Sawyer, senior analyst at energy consultant Facts Global Energy, told CNBC. More than 170 countries, including the U.S., have signed on to the fuel change. The proposed rule change comes at a time when the stakes are high for


The rule change is designed to significantly curb pollution produced by the world’s ships. But, starting next year, the shipping industry will have to comply with rules that should dramatically reduce sulfur emissions. “It is the biggest change in oil market history,” Steve Sawyer, senior analyst at energy consultant Facts Global Energy, told CNBC. More than 170 countries, including the U.S., have signed on to the fuel change. The proposed rule change comes at a time when the stakes are high for
The ‘biggest change in oil market history’ is less than six months away Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: sam meredith
Keywords: news, cnbc, companies, shipping, ships, emissions, fuel, away, imo, change, history, biggest, worlds, market, oil, sulfur, months, industry


The 'biggest change in oil market history' is less than six months away

The International Maritime Organization (IMO) will enforce new emissions standards on January 1, 2020. The rule change is designed to significantly curb pollution produced by the world’s ships. Arterra | Universal Images Group | Getty Images

Tens of thousands of ships sailing the world’s oceans burn more than 3 million barrels of sludge-like high-sulfur fuel every single day. But, starting next year, the shipping industry will have to comply with rules that should dramatically reduce sulfur emissions. “It is the biggest change in oil market history,” Steve Sawyer, senior analyst at energy consultant Facts Global Energy, told CNBC. “It is going to affect crude oil producers, traders, ship owners, refiners, equity investors, insurance companies, logistical businesses, banks… Who’s left? I’m struggling to think of anyone it might not affect. That’s why it is a huge transition,” Sawyer said. With less than six months to go before the new rules on marine fuels come into force, CNBC takes a look at the far-reaching consequences of the coming changes.

What is IMO 2020?

On January 1, 2020, the International Maritime Organization (IMO) will enforce new emissions standards designed to significantly curb pollution produced by the world’s ships. Amid a broader push towards cleaner energy markets, the IMO is set to ban shipping vessels using fuel with a sulfur content higher than 0.5%, compared to levels of 3.5% at present. The most commonly used marine fuel is thought to have a sulfur content of around 2.7%.

There is a brick wall coming at the end of December which has been built for over two years. I think you can either run into it head first and say: ‘that hurts,’ or you can find a way around it. ” Steve Sawyer Senior analyst at Facts Global Energy

The new regulations are the result of a recommendation that came from a subcommittee at the United Nations (UN) more than a decade ago and was adopted in 2016 by the UN’s IMO, which sets rules for shipping safety, security and pollution. More than 170 countries, including the U.S., have signed on to the fuel change. Starting in 2020, ships found in violation of the new laws risk being impounded and ports in cooperating countries are expected to police visiting vessels.

Why does it matter?

“It is an enormous switch. If you considered shipping alongside all of the oil consuming nations, it would be number four or five on the list — so it is an enormous amount of consumption,” Anthony Gurnee, CEO of Ardmore Shipping, told CNBC’s “Squawk Box Europe” last week. Ardmore Shipping is a U.S.-listed company based in Ireland, with a business of owning and operating a fleet of tankers that move refined oil products. “We are going to a fundamentally different type of fuel. It is having a bigger impact actually on the refining industry than it is on shipping,” Gurnee said.

The forthcoming measures are widely expected to create an oversupply of high-sulfur fuel oil while sparking demand for IMO-compliant products — thus ratcheting up the pressure on the refining industry to produce substantially more of the latter. This is especially important, energy analysts say, because Middle Eastern oil producers — such as OPEC kingpin Saudi Arabia — are likely to lose out given their over-reliance on crude with a high-sulfur content. The shipping industry is under intense pressure to slash its sulfur emissions, given the pollutant is a component of acid rain, which harms vegetation and wildlife, and contributes to the acidification of the oceans. The proposed rule change comes at a time when the stakes are high for the world’s shipping vessels. Late last year, analysts at UBS estimated the green shipping market could be worth at least $250 billion over the next five years.

Is there any chance it could be delayed?

In a word: no. The IMO has said there can now be no change to the implementation date, as it is too late for any revisions to take place before January 1, 2020.

What must ships do to meet the new regulations?

Ship owners can significantly reduce their sulfur emissions by using low-sulfur fuel, traveling more slowly, installing exhaust gas cleaning systems or opting for other — more expensive — clean fuels such as liquefied natural gas. Some ships will chose to limit the air pollutants by installing exhaust gas cleaning systems, known as “scrubbers.” These are designed to remover sulfur oxides from the ship’s engine and boiler exhaust gases. A ship fitted with a scrubber could continue to use heavy oil, since the sulfur oxide emissions would be reduced to a level equivalent to the required limit.

A support vessel flying an Iranian national flag sails alongside the oil tanker ‘Devon’ as it prepares to transport crude oil to export markets in Bandar Abbas, Iran, on Friday, March 23, 2018. Ali Mohammadi/Bloomberg via Getty Images


Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: sam meredith
Keywords: news, cnbc, companies, shipping, ships, emissions, fuel, away, imo, change, history, biggest, worlds, market, oil, sulfur, months, industry


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Impossible Foods sets its sights on Asia, which consumes nearly half the world’s meat

Meatless burger-maker Impossible Foods is looking to expand in Asia — a region with a voracious appetite for meat. According to a 2019 report by the Organisation for Economic Co-operation and Development, and the Food and Agriculture Organization of the United Nations, Asia accounts for more than 46% of the world’s meat consumption. Impossible Foods, which primarily makes plant-based protein products, made their first foray into Asia via Hong Kong about 18 months after launching worldwide. Hong


Meatless burger-maker Impossible Foods is looking to expand in Asia — a region with a voracious appetite for meat. According to a 2019 report by the Organisation for Economic Co-operation and Development, and the Food and Agriculture Organization of the United Nations, Asia accounts for more than 46% of the world’s meat consumption. Impossible Foods, which primarily makes plant-based protein products, made their first foray into Asia via Hong Kong about 18 months after launching worldwide. Hong
Impossible Foods sets its sights on Asia, which consumes nearly half the world’s meat Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: stella soon
Keywords: news, cnbc, companies, foods, nearly, meat, sights, sets, half, halla, worlds, asia, plantbased, kong, consumes, market, core, united, impossible, hong


Impossible Foods sets its sights on Asia, which consumes nearly half the world's meat

Meatless burger-maker Impossible Foods is looking to expand in Asia — a region with a voracious appetite for meat.

“Asia is by far the number one focus for us. It is core to our mission; core to our business,” the company’s senior vice president for international, Nick Halla, told CNBC’s “Street Signs ” on Thursday.

According to a 2019 report by the Organisation for Economic Co-operation and Development, and the Food and Agriculture Organization of the United Nations, Asia accounts for more than 46% of the world’s meat consumption.

Impossible Foods, which primarily makes plant-based protein products, made their first foray into Asia via Hong Kong about 18 months after launching worldwide.

Hong Kong has one of the highest meat consumption per capita in the world, according to the University of Hong Kong. Hong Kongers consume a daily average of meat equivalent to about two pieces of 10-oz steak — that’s four times higher than in the United Kingdom, according to the university’s research.

This has meant the California-based company had to adopt a different market strategy for its Hong Kong expansion.

“The first thing we have to do, coming into a new market, is build that credibility that this is not the plant-based product of the past,” Halla said.


Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: stella soon
Keywords: news, cnbc, companies, foods, nearly, meat, sights, sets, half, halla, worlds, asia, plantbased, kong, consumes, market, core, united, impossible, hong


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Anheuser-Busch InBev Asia cancels world’s largest IPO of 2019

Anheuser-Busch InBev said on Friday it will not proceed with the initial public offering of its Asia Pacific unit, Budweiser Brewing Company APAC, on the Hong Kong Stock Exchange. The move, against the backdrop of a protracted U.S.-China trade war, set a downbeat tone for large Hong Kong listings, seen as a barometer for future large share sales, such as Alibaba’s Hong Kong listing. IPOs on Hong Kong exchanges are only able to price up to 10% below the target range without regulatory approval if


Anheuser-Busch InBev said on Friday it will not proceed with the initial public offering of its Asia Pacific unit, Budweiser Brewing Company APAC, on the Hong Kong Stock Exchange. The move, against the backdrop of a protracted U.S.-China trade war, set a downbeat tone for large Hong Kong listings, seen as a barometer for future large share sales, such as Alibaba’s Hong Kong listing. IPOs on Hong Kong exchanges are only able to price up to 10% below the target range without regulatory approval if
Anheuser-Busch InBev Asia cancels world’s largest IPO of 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: eustance huang
Keywords: news, cnbc, companies, billion, cancels, ipo, investors, hong, kong, worlds, large, set, 2019, company, end, asia, debt, inbev, anheuserbusch, largest


Anheuser-Busch InBev Asia cancels world's largest IPO of 2019

Anheuser-Busch InBev said on Friday it will not proceed with the initial public offering of its Asia Pacific unit, Budweiser Brewing Company APAC, on the Hong Kong Stock Exchange.

The company said the decision was due to “several factors, including the prevailing market conditions.”

It had been set to be world’s biggest listing of 2019. The company had been seeking to raise up to $9.8 billion.

The move, against the backdrop of a protracted U.S.-China trade war, set a downbeat tone for large Hong Kong listings, seen as a barometer for future large share sales, such as Alibaba’s Hong Kong listing.

Budweiser APAC, whose portfolio of more than 50 beer brands includes Stella Artois and Corona, received offers for shares within its targeted range from hedge funds and private wealth managers but some large long-only U.S. investors, which are often prioritized in an IPO, offered below the HK$40 per share level, other people familiar with the matter said.

IPOs on Hong Kong exchanges are only able to price up to 10% below the target range without regulatory approval if the risk is flagged in its prospectus.

This was not sufficiently highlighted in the Budweiser filing so AB InBev held firm on the HK$40 price, meaning some U.S. investors trimmed the size of their orders, sources said.

The company’s executives and representatives from the deal’s co-sponsors, JPMorgan and Morgan Stanley, met in New York to discuss pricing after the books closed on Thursday.

People familiar with the issue said it was struggling to secure enough demand from long-term investors.

Typically investors put in orders for more shares than they actually expect to receive in an effort to ensure they get a good allocation. Deals where those investors end up with more than they really expected often trade poorly to begin with.

All the sources who spoke to Reuters did so on condition of anonymity as they were not authorized to speak on the matter.

Budweiser APAC was seeking to raise between $8.3 billion and $9.8 billion through the float, much of which will go towards paying down debt at its highly leveraged parent. Trading was set to begin on July 19.

AB InBev, the world’s largest brewer, has been working to reduce a debt pile of more than $100 billion that it built up with the purchase of nearest rival SABMiller in late 2016.

AB InBev has said it will reduce its net debt to EBITDA ratio to below 4 by the end of 2020 from 4.6 at the end of last year and that this is not dependent on the Asian flotation. It says the optimal ratio is 2.

AB InBev stock, which has rallied 36% this year, is still down 11% over the last 12 months. It fell 1.5% on Friday.


Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: eustance huang
Keywords: news, cnbc, companies, billion, cancels, ipo, investors, hong, kong, worlds, large, set, 2019, company, end, asia, debt, inbev, anheuserbusch, largest


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Here’s why the Strait of Hormuz is the world’s most important oil chokepoint

The Strait of Hormuz is a critical gateway to the world’s oil industry, with more than a fifth of global oil supply flowing through a narrow sea channel used by Gulf countries like Iran, Saudi Arabia and the United Arab Emirates. That’s the equivalent of about 21% of global petroleum liquids consumption — making it the world’s most important oil chokepoint. The EIA defines a chokepoint as a narrow channel along widely used global sea routes that are critical to energy security. Flows through the


The Strait of Hormuz is a critical gateway to the world’s oil industry, with more than a fifth of global oil supply flowing through a narrow sea channel used by Gulf countries like Iran, Saudi Arabia and the United Arab Emirates. That’s the equivalent of about 21% of global petroleum liquids consumption — making it the world’s most important oil chokepoint. The EIA defines a chokepoint as a narrow channel along widely used global sea routes that are critical to energy security. Flows through the
Here’s why the Strait of Hormuz is the world’s most important oil chokepoint Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: sam meredith
Keywords: news, cnbc, companies, narrow, hormuz, heres, shipping, worlds, important, oil, strait, chokepoint, global, channel, energy, used, supply


Here's why the Strait of Hormuz is the world's most important oil chokepoint

The Strait of Hormuz is a critical gateway to the world’s oil industry, with more than a fifth of global oil supply flowing through a narrow sea channel used by Gulf countries like Iran, Saudi Arabia and the United Arab Emirates.

The strategically important waterway links crude producers in the Middle East with key markets across the world.

Daily oil flow in the Strait averaged 21 million barrels per day in 2018, according to the U.S. Energy Information Administration (EIA). That’s the equivalent of about 21% of global petroleum liquids consumption — making it the world’s most important oil chokepoint.

The EIA defines a chokepoint as a narrow channel along widely used global sea routes that are critical to energy security.

Therefore, the inability of oil to transit a major chokepoint, even temporarily, can lead to substantial supply delays and higher shipping costs — resulting in higher world energy prices.

Most chokepoints can be circumvented by using other shipping channels but some, such as the Strait of Hormuz, have no practical alternatives.

Flows through the narrow channel in 2018 made up about one-third of total global seaborne traded oil. More than one-quarter of global liquefied natural gas trade (LNG) also transited the shipping channel last year.


Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: sam meredith
Keywords: news, cnbc, companies, narrow, hormuz, heres, shipping, worlds, important, oil, strait, chokepoint, global, channel, energy, used, supply


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