2024-08-22 12:45

ROME, Aug 22 (Reuters) - Seven people are believed to have died, including British tech tycoon Mike Lynch and Morgan Stanley's Jonathan Bloomer, after a luxury yacht belonging to Lynch's family sank off the northern coast of Sicily on Monday. Here is what we know about the Aug. 19 accident. VIOLENT STORM The Bayesian, a British flagged 56-metre (184-feet) superyacht, sank in the dark shortly before 5 am (0300 GMT) off the port of Porticello, near Palermo, after being hit by a "violent storm," the Italian coast guard said. The coast guard said bad weather had been forecast, but added that it was more virulent than expected. Some locals spoke of a waterspout, or sea whirlwind, of exceptional force. THE OTHER BOAT The nearby yacht, the 42-metre Sir Robert Baden Powell, remained anchored and weathered the storm after its captain turned on the engine to keep control and avoid a collision with the Bayesian. The captain, Karsten Borner, said he did not know if the crew of the Bayesian had managed to switch on its engines. "I only know that they went flat with the mast on the water and that they sank in two minutes," he said. 'INCOMPREHENSIBLE' Andrea Ratti, a nautical design professor at Milan Polytechnic university, said a boat the size of the Bayesian could only sink so rapidly by taking in a huge amount of water. He suggested that one or more portholes, windows or other openings may have been left open, broken or smashed by the waterspout, letting in water. However, an industry expert in Britain said it should have taken hours for the Bayesian to fill up with enough water to sink it, making its swift demise incomprehensible. Matthew Schanck, chair of Britain's Maritime Search and Rescue Council, said the Bayesian was the victim of a so-called black swan, a rare event with a high impact. RECORD MAST The Bayesian featured the world's tallest aluminium mast, measuring 72 metres. A tall mast has a lot of surface area exposed to the wind, but Ratti and structural engineer Filippo Mattioni said it is not by itself an element of vulnerability in a storm. Fire department diver Marco Tilotta said the wreck was intact and the mast was still attached. He added, that divers had not been able to inspect the full length of the mast but the section they had seen was undamaged. RETRACTABLE KEEL The Bayesian had a retractable keel - a stabilising structure under the hull which can be partially lifted to reduce the depth of the ship when entering shallow waters or harbours. Both Ratti and Mattioni wondered if the yacht had been anchored with the keel up, compromising its stability in a violent storm. UNSINKABLE The Bayesian was built in 2008 by Perini Navi, an Italian luxury yacht maker. It was refitted twice but not by Perini, a source with knowledge of the matter told Reuters. Giovanni Costantino, CEO of the Italian Sea Group (TISGR.MI) , opens new tab, which owns Perini, said the yacht was "one of the safest boats in the world" and basically unsinkable. He added that its sinking was due to a chain of human errors given that the storm was expected, speaking in interviews to Italian media. Had the crew shut all doors and hatches, turned on the engine, lifted the anchor, lowered the keel and turned the yacht to face the wind, they would have suffered "zero damage", the CEO said. He added that data showed it took 16 minutes from when the wind began buffeting the yacht, and it began taking on water, for it to sink. Sign up here. https://www.reuters.com/world/europe/what-we-know-about-sinking-superyacht-off-sicily-2024-08-20/

2024-08-22 12:37

Putin says Ukraine tried to strike nuclear power plant The Kursk plant is one of Russia's top nuclear power stations Situation is stable at the Kursk plant, governor says IAEA has been informed, Putin says Over 133,000 people have left Kursk region MOSCOW, Aug 22 (Reuters) - Russian President Vladimir Putin on Thursday accused Ukraine of trying to strike Russia's Kursk nuclear power plant in an overnight attack and said Moscow had informed the U.N. nuclear safety watchdog about the situation. Acting Kursk Governor Alexei Smirnov told Putin that the situation at the Kursk plant, which has four Soviet graphite-moderated RBMK-1000 reactors, was "stable". "The enemy tried to strike at the nuclear power plant during the night today," Putin told a meeting of senior officials about the situation in Russian border regions. "The International Atomic Energy Agency has been informed, they promise to come themselves and send specialists to assess the situation," Putin said. He did not provide further details about the incident or provide documentary evidence to back up his assertion. There was no immediate comment from Ukraine and Reuters was unable to independently confirm the attack. Ukraine's lightning Aug. 6 incursion into Kursk, the biggest into Russia by a foreign power since World War Two, saw thousands of Ukrainian troops punch through Russia's western border, apparently catching Moscow by surprise. Fierce fighting around 30 km (18 miles) from the nuclear plant has since then has raged as Russian troops battle to dislodge the Ukrainian soldiers who have sought to consolidate and expand the territory they control. Rafael Grossi, director general of the International Atomic Energy Agency (IAEA), on Aug. 9 appealed for maximum restraint to avoid a nuclear accident at the Kursk plant. Two of the RBMK-1000 reactors are in shutdown and two are fully operational. Construction of Kursk-2, essentially new reactors of the VVER-TOI type, was begun in 2018. The two reactors are not operational yet. Smirnov told Putin that 133,190 people had left or been evacuated from his region. Bryansk Governor Alexander Bogomaz told Putin that border forces had repelled an attempt by a Ukrainian sabotage and reconnaissance team from entering the region, which lies northwest of Kursk. Sign up here. https://www.reuters.com/world/europe/putin-reviews-situation-russian-border-regions-after-ukrainian-incursion-2024-08-22/

2024-08-22 11:41

BEIJING/LONDON, Aug 28 (Reuters) - China launched an anti-subsidy investigation into dairy imports from the European Union a day after the bloc's revised tariff plan for China-made electric vehicles. Wednesday's inquiry, targeting cheese, milk and cream meant for human consumption, came after the EU amended proposed punitive duties on Chinese EV imports to 36.3% from an initial 37.6%. Beijing had urged Brussels to abandon the tariffs. DAIRY PRODUCER ARLA FOODS: The CEO of Arla Foods, one of the world's biggest dairy producers owned by more than 9,000 dairy farmers in Denmark, Sweden, Britain, Germany, Belgium, Luxemburg and the Netherlands, said the company is not directly impacted by China's anti-subsidy probe. "I'm confident that the EU and the system can handle this, and that it doesn't necessarily have to become as dramatic as it initially seems," Peder Tuborgh said. "(China is) far from self-sufficient, and the exports to China are still reasonable, but they are able to meet their growth consumption nicely through the development they are undergoing themselves... (I see this) as a normal market mechanism, more than being a specifically protectionist thing. EUROPEAN UNION CHAMBER OF COMMERCE IN CHINA: "Regrettably, the use of trade defence instruments by one government is increasingly being responded to seemingly in kind by the recipient government. "The chamber will be monitoring the investigation and hopes it will be conducted fairly and transparently. We expect our affected member companies to co-operate to the fullest with the investigation." FRIESLANDCAMPINA: Dutch dairy cooperative FrieslandCampina, whose specialised nutrition business sells infant nutrition products in China and which has a small business selling condensed milk products and creamers for the business-to-business market, said it was aware of the announcement of the anti-subsidy investigation. "Naturally, we will provide the necessary information related to the investigation, if requested, in accordance with laws and regulations," a spokesperson said. THE IRISH FARMERS ASSOCIATION: Tadhg Buckley, director of policy and chief economist at Ireland's largest farming lobby group the Irish Farmers' Association, said Chinese authorities are looking predominantly at "cheese, cream and other related processed cheese, blue cheeses and cheeses of that type". He said that would account for about 45 million of 430 million euros ($478.55 million) worth of Irish exports last year. Specialised powders used for nutritional purposes make up the bulk of exports to China, he added. "If the investigation... expanded outside into powders, it would certainly be a much different and much more significant issue for Ireland," he said, adding that a trade delegation was heading to China at the end of the month. IRISH MINISTRY FOR AGRICULTURE, FOOD AND THE MARINE: "I will be engaging with the EU Commission to ensure that it has all of the data necessary in so far as Ireland is concerned to resolve any issues raised in the proposed investigation," Charlie McConalogue, Ireland's Minister of Agriculture, Food and the Marine, said. JACOB GUNTER, LEAD ECONOMY ANALYST AT MERCATOR INSTITUTE FOR CHINA STUDIES: "EU dairy exports to China come out to around 1.7 billion euros, which is less than 1% of total EU exports to China, so even if tariffs go so high as to de facto block all dairy trade, it will have a relatively small impact on EU exports. "Nevertheless, the pain will be felt more acutely in the biggest exporters to China, from Irish butter to Finnish milk powder to Spanish Manchego to Italian Parmigiano Reggiano. "China has been ramping up its own dairy production for years, and only a small portion of all dairy products consumed in China are imported. "China is important for butter and cheese exports, but considering the size of the country, it is still a minor player. "I expect that more ‘replaceable’ dairy products will be most affected by tariff hikes, as alternatives from the U.S., Canada, Australia, and New Zealand will be more cost competitive – think butter, milk, milk powder, cream, and the most common types of cheese. "For less ‘replaceable’ product types – many of Europe’s high-end and specialized cheeses, for example – the main question will be at (what) point a given product just becomes cost prohibitive." ($1 = 0.8986 euros) Sign up here. https://www.reuters.com/world/china/reactions-chinas-anti-subsidy-probe-eu-dairy-imports-2024-08-22/

2024-08-22 11:38

MANAUS, Brazil, Aug 22 (Reuters) - A team of biologists, vets and fishermen temporarily captured rare freshwater dolphins in the Amazon this week to study their health in hopes of avoiding a repeat of the deaths of hundreds of the mammals last year due to a severe drought. The dolphins were brought ashore for blood tests and other examinations and returned to Lake Tefé in the Amazon basin as soon as the researchers had finished their work, which included inserting a microchip to monitor their behavior via satellite. Fishermen were careful not to injure an adult female dolphin during capture and kept her close to her offspring to avoid stressing the animals. "She relaxed and we could do all the tests. She appeared in good health," said project leader Miriam Marmontel of the Mamirauá Institute of Sustainable Development, which planned the expedition to temporarily capture up to 20 dolphins. The work included removing a sample for a biopsy to see whether there were contaminants in her blubber, and the placing of the microchip on her back, which will allow researchers to follow her movements and the depths she swims at, and even determine water temperatures remotely. In a grim fallout from the longest drought in the Amazon rainforest's recorded history last year, induced in part by climate change, the carcasses of more than 200 river dolphins were found floating on Lake Tefé, which is formed by a tributary of the Amazon River. Low river levels during the drought heated the water to temperatures that were intolerable for the dolphins, researchers say. Thousands of fish also died in Amazon waterways due to a lack of oxygen in the water. PINK DOLPHINS The Amazon river dolphins, many of a striking pink color, are a unique freshwater species found only in the rivers of South America and are one of a handful of freshwater dolphin species left in the world. Slow reproductive cycles make their populations especially vulnerable to threats. Marmontel said they hope to establish what caused last year's deaths before this season's drought set in as the Amazon dry season begins, so that researchers can react faster. "We aim to learn more about the health of the dolphins at a time when water levels begin to go down and temperatures start to rise, so we can identify the changes and know whether they are due to higher temperatures or a toxin or pollutant in the water," she told Reuters. The project was supported by the National Marine Mammal Foundation of California, whose researchers helped conduct ultrasound examinations on the dolphins. Marmontel said most of the dolphins that perished last year were in Lake Tefé, a 45-km-wide (27-mile) expanse of water where the dolphins like to be located, just off the Solimoes River. The lake's waters reached 40.9 degrees Celsius (105.62 Fahrenheit) during the 2023 drought, more than 10 degrees higher than the average for that time of the year. The water is now at 30 degrees Celsius (86 degrees Fahrenheit), said Ayan Fleischmann, a geosciences researcher at the Mamirauá Institute. Environmental activists have blamed the unusual conditions on climate change, which makes droughts and heat waves more likely and severe. The role of global warming in last year's Amazon drought is unclear, with other factors such as the El Niño weather phenomenon also seen as a factor. Sign up here. https://www.reuters.com/business/environment/rare-amazon-river-dolphins-studied-climate-change-impact-2024-08-22/

2024-08-22 11:25

Revolut valued at $45 bln in employee share sale Valuation exceeds that of Barclays, Natwest Storonsky's stake worth around $8 bln, Reuters calculations show Former banker launched Revolut in 2015 LONDON, Aug 22 (Reuters) - Revolut founder and CEO Nik Storonsky had a simple message for his employees at the company's summer drinks last year: make the financial technology firm bigger, better and beat the banks, a person who was there said. The nine-year-old fintech business has now been valued at $45 billion after its employees sold shares to investors, surpassing in terms of worth some of Europe's biggest lenders, including Britain's 334-year-old Barclays (BARC.L) , opens new tab and NatWest (NWG.L) , opens new tab. The deal cements London-based Revolut as Europe's most valuable start-up and is a vindication for 40-year-old Storonsky, coming weeks after he secured a UK banking licence following a three-year pursuit. The success positions Revolut to challenge established banks in more sectors, like mortgages. Storonsky's stake in Revolut is now worth around $8 billion, according to Reuters calculations based on his shareholding disclosed in a document filed with Britain's corporate registry. He was ranked 45th in the Sunday Times Rich List 2024, with a net worth of 4.38 billion pounds ($5.7 billion). A former Lehman Brothers derivatives trader who also worked at Credit Suisse, Russian-born Storonsky left banking in 2013 to co-found Revolut, one in a wave of digital-only banking apps seeking to undercut mainstream lenders with lower-fee products. The idea of the company came when, while travelling, he was dumbfounded by the high transaction fees and commissions levied by banks. Since then Storonsky, who studied physics and maths in Moscow, has defied his critics, the struggles of rival fintechs and tough funding markets - Revolut's $45 billion valuation is a 36% jump on $33 billion in 2021. The price is striking for a company which reported revenue of $2.2 billion last year, and the recent market downturn has demonstrated that lofty fintech valuations can fall fast. Steve McLaughlin, founder of FT Partners and a banking adviser for Revolut on its 2021 fundraising, said he believed Revolut was worth $100 billion, in part because the total addressable market for financial services was vast. "We did the analytics, we did the studies, we projected out to 2040 what the company would look like – and everyone thought it was overpriced (in 2021) but look who’s proven wrong," McLaughlin told Reuters. Two sources familiar with Revolut said Storonsky had pushed in recent months for a $40 billion-plus valuation, telling bankers he would not accept any deal to cash in employee shares that was not an improvement on 2021. Revolut declined to comment. DETAILS AND DATA The person at last year's drinks, a former employee, said Storonsky was obsessed with detail and data, eschewing long emails and formalities for a casually dressed, informal culture in which every employee could expect to be challenged by the CEO on calls. When in London, he works from his desk in the middle of Revolut's open-plan office, the person, who spoke on condition of anonymity, said. However, Revolut's working culture has prompted criticism from past employees and the company has seen high staff turnover. Storonsky has defended Revolut as a workplace and said it had learnt lessons. He brought in big names from mainstream finance like ex-Standard Life Aberdeen co-CEO Martin Gilbert as chairman and former Goldman Sachs banker Michael Sherwood. A Revolut spokesperson told Reuters the company placed "enormous value on attracting, retaining and developing talented people". It has grievance processes that comply with local laws and are fair and transparent, the spokesperson said. Storonsky has retained close control of performance through an internal team of about 15-20 people who report directly to him, the former Revolut employee said. Mostly under 35 and recruited from banks or consultancies, they have been given powerful individual remits, like tackling underperforming departments, the person said. BIGGER CHALLENGES Delays in getting the UK banking licence after regulatory scrutiny over auditing issues - Revolut twice delayed publication of its full-year accounts - were a major setback for Storonsky. He criticised Britain as a place to do business in a 2023 interview with The Times newspaper and said, in the event of a public listing, he would choose New York over London. Bigger challenges for Storonsky and Revolut may lie ahead. As the company expands into other sectors with its UK banking licence, it will invite increased regulatory scrutiny. Consumer watchdogs have criticised Revolut's record versus rivals in reimbursing UK customers hit by fraud. Revolut has said it takes fraud and scams "incredibly seriously" and has robust protections in place. For staff, particularly those who joined Storonsky in the early years, the rewards have been immense, turning many current and former employees into multi-millionaires on paper. Storonsky said last week he was delighted employees could realise the company's collective success when they sold $500 million of shares. What is less clear is how much the recent achievements and Storonsky's ambition will accelerate plans for a stock market listing, in the United States or in London. ($1 = 0.7676 pounds) Sign up here. https://www.reuters.com/markets/europe/revoluts-storonsky-takes-big-step-forward-battle-with-banks-2024-08-22/

2024-08-22 11:15

OTTAWA, Aug 19 (Reuters) - For the first time, Canada's two main railway companies - Canadian National Railway (CNR.TO) , opens new tab and Canadian Pacific Kansas City (CP.TO) , opens new tab - are on the verge of a simultaneous labor stoppage that could inflict billions of dollars' worth of economic damage. WHY ARE BOTH COMPANIES POISED TO STOP? Contract talks between the Teamsters union and the companies usually take place a year apart, but in 2022, after the federal government introduced new rules on fatigue, CN requested a year-long extension to its existing deal rather than negotiate a new one. This meant both companies' labor agreements expired at the end of 2023 and talks have been ongoing since. As a result, for the first time the failure of negotiations would halt the vast majority of the Canadian freight rail system. The Teamsters represent around 10,000 members who work as locomotive engineers, conductors, train and yard workers and rail traffic controllers at the two companies in Canada. WHAT IS LIKELY TO HAPPEN NEXT? CN Rail and CPKC both say they will start locking out workers in the early hours of Thursday if they cannot reach a deal. The union has issued a strike notice to CPKC which would also take effect early on Thursday. CPKC, created in 2023 through a merger of Canadian Pacific and Kansas City Southern, has a U.S. and Mexican network which it says will operate normally. CN also says trains on its U.S. network will run. That said, a stoppage will still lead to shipment disruptions south of the border. Both rail operators and some of their U.S. competitors have begun to refuse certain cross-border cargoes that would rely on the CN and CPKC networks. CPKC has said it would halt new rail shipments originating in Canada, and new U.S. shipments destined for Canada starting Aug. 20, if talks fail to progress. The railways move grain, autos, coal and potash, among other shipments. WHAT ARE THE SIDES ARGUING ABOUT? The union says CPKC wants "to gut the collective agreement of all safety-critical fatigue provisions", meaning crews will be forced to stay awake longer, boosting the risk of accidents. CPKC says its offer maintains the status quo for all work rules, "fully complies with new regulatory requirements for rest and does not in any way compromise safety." The Teamsters say CN wants to implement a forced relocation provision, which would see workers ordered to move across Canada for months at a time to fill labor shortages. CN says it has made four offers this year on wages, rest, and labor availability while remaining fully compliant with government-mandated rules overseeing duty and rest periods. WHAT CAN THE FEDERAL GOVERNMENT DO? Under article 107 of the federal labor code, Labour Minister Steven MacKinnon has broad powers and can order the sides to enter binding arbitration. In 2023, his predecessor, Seamus O'Regan, issued such an order to end a dockworkers strike in British Columbia. In that case, unlike the current rail dispute, the sides had largely agreed on the outlines of a deal. MacKinnon rejected a request last week by CN for binding arbitration, urging the sides instead to put in more effort at the negotiating table. In a separate statement issued on Monday, he urged the companies and union to put in the tough work needed to reach a deal. WHAT HAPPENS IF THE UNION STRIKES? Talk of the government acting to end a strike is moot, given that both companies have made clear they will lock out workers. In case of a strike, the government can introduce back-to-work legislation forcing union workers to return to their jobs. The previous federal Conservative government did that in 2012 to end a walkout by Canadian Pacific workers. Sign up here. https://www.reuters.com/business/why-canada-is-verge-an-unprecedented-rail-labor-stoppage-2024-08-19/