Industry Sector Feeds

Energy & Utilities | Consumer Products & Retail | Automotive | Banking | Insurance

 

Energy & Utilities

 

Duke's $4.9B acquisition of Piedmont clears federal regulatory hurdle

 

Duke Energy announced that the Federal Trade Commission (FTC) granted early termination under the federal Hart-Scott-Rodino Antitrust Improvements Act, clearing the way for its proposed $4.9 billion acquisition of Piedmont Natural Gas. The companies must still file for approval in North Carolina, where Charlotte Business Journal reports they are likely to face opposition surrounding Duke's growing ties to natural gas and the company's increasing influence in the region.

 

This €1 Billion Power Plant May Never Be Switched on

 

Germany’s unprecedented energy shift is turning newly built power plants into white elephants that will never produce any electricity. Once the backbone that underpinned growth in Europe’s biggest economy, coal and gas plants are being marginalized in a new world where solar and wind are all the rage. With electricity prices at their lowest level in more than a decade, the outlook is now so bad that RWE AG will never start its 1 billion-euro ($1.1 billion) Westfalen-D plant, while EON SE applied this year to close two new unprofitable gas-fired units. The plants show the struggle the nation’s biggest utilities are facing. The two biggest losers on Germany’s DAX Index this year will both split in 2016 in a bid to adjust their businesses to Chancellor Angela Merkel’s relentless push to increase the nation’s share of renewables in power production to 45 percent in ten years time, from 30 percent now.

 

Get ready for the 'Internet of Energy'

 

When analytics software company C3 Energy emerged from stealth in 2011, expectations ran high. After all, the company’s founder was veteran entrepreneur Tom Siebel, who sold his previous "startup" to Oracle for almost $6 billion. Four years later, C3 is reporting progress among utilities, including Italy’s biggest power company Enel, and businesses such as Cisco Systems that desire far more accurate status reports about energy consumption across their facilities but don’t have the computing resources to crunch all that data efficiently. C3 is one of several companies that sell energy analytics applications that are meant to replace more manual data-crunching methods, such as spreadsheets, that utilities and other organizations use to uncover trends. What differentiates these technologies from smart grid systems of the past is that they also incorporate data collected by sensors and other devices that aren’t necessarily part of the grid itself, but that are connected via the so-called Internet of Things.

Consumer Products & Retail

 

General Mills Announces Acquisition Of Brazilian Yogurt Maker Carolina

 

General Mills said that it has acquired Brazilian yogurt maker Carolina Administracao e Participacoes Societarias Ltda., (Carolina), a privately-held dairy products company headquartered in Ribeirao Claro, Parana, Brazil.  Terms of the transaction were not disclosed. Carolina is a family-owned Brazilian company established in 1969.  A leading regional dairy products producer, Carolina is especially known for its strong regional yogurt brands, Carolina, VeryGurt and Gluck. Operating primarily in southern and southeastern Brazil, Carolina sources high-quality milk from farmers in the dairy-rich region of Parana, and markets more than 20 different dairy product lines.  Employing more than 390 people in Ribeirao Claro and across the region, Carolina has significant regional operating, sales and distribution infrastructure.

 

Wal-Mart considers closing five per cent of Brazil stores

 

Wal-Mart Stores Inc is considering closing about 30 stores and renting some of its property in Brazil next year, Brazilian newspaper Valor Economico reported on Wednesday, as the world's largest retailer looks to exit poor-performing markets. Wal-Mart declined to comment directly about store closings, telling Reuters it is "constantly reviewing its portfolio and making decisions based on what's best for the business and clients." Valor did not identify the source of its story. Two months ago Chief Executive Officer Doug McMillon pledged to review Wal-Mart's global store base to eliminate underperforming units. It has begun selling noncore businesses in Latin America, including property in Chile and a restaurant chain in Mexico.

 

Alibaba stepping up rural presence

 

E-commerce giant Alibaba Group Holding Ltd said on Wednesday that it would continue to make more investments to boost its presence in rural areas. The company, which announced a 10 billion yuan ($2.1 billion) rural investment plan, is considering more steps to improve the living conditions of farmers, said Jack Ma, chairman of the group. Alibaba launched its first "Stocking for China's Lunar New Year Festival" programme at an e-commerce summit in Yan'an on Wednesday. The programme enables farmers to sell their agriculture products in cities through the Alibaba platforms. "Modernization of agriculture is key to China's economic growth in the next two decades," Ma said. "Making full use of the Internet, including big data, to help farmers out of poverty is a smart strategy." He said the programme is aimed at tapping the entrepreneurial potential of the about 1 million rural migrant workers who return from the cities to their home villages to start their own businesses.

Automotive

 

UAW contracts sanction moves to eliminate small car production in US

 

Though the United Auto Workers has concealed this from workers, the UAW-Ford deal explicitly sanctions the company to shift more car production to its lower-wage factories in Mexico. The same is true for the agreements signed by the UAW with Fiat Chrysler and General Motors. Over the next decade, the number of small cars produced in the Mexican plants owned by the Detroit automakers will increase by 30 percent or more, according to reports in the industry publication Automotive News. The companies “are essentially giving up on trying to build mass-market cars profitably in this country,” the publication noted. The UAW rejects any struggle to unify workers in Mexico, Canada and the US in a common fight against the transnational auto giants. On the contrary, it has played the key role in pitting workers against each other in a fratricidal struggle over who will work for the lowest wages and worst conditions. In the US, the companies will largely focus on highly profitable pickup trucks, SUVs and other larger models, which bring in $10,000 or more in profits per vehicle. Though sales of these vehicles may be high at the moment, the market is highly susceptible to shifts, including a hike in auto loan interest rates, rising gas prices and other factors.

 

German emissions scandal threatens to engulf Mercedes, BMW

 

German auto giant Daimler has made legal threats against an environmental group after it tested diesel cars. The results appeared to show that Mercedes and BMW models are also cheating on emissions tests. The environmental group Deutsche Umwelthilfe (DUH) and German state broadcaster ZDF presented the results of nitric oxide tests they had conducted on two Mercedes and BMW diesel models. They appeared to show similar discrepancies between "test mode" and road conditions that hit Volkswagen earlier this year, triggering one of the biggest scandals in German automobile history. In response to the report released on December 15, a law firm representing Daimler, which owns Mercedes, sent a letter to the DUH that read, "Should you in any way present the accusation that my client manipulated its emissions data, we will act against you with all necessary sustainability and hold you responsible for any economic damage that my client suffers as a result." Amidst all this new scrutiny, the German government is maintaining a stony silence. In response to a DW request, the Transport Ministry did not offer any other explanation for the test discrepancies. "The federal automobile authority [KBA] is currently carrying out tests on the affected Volkswagen diesel models as well as other major manufacturers of diesel cars ... the tests are taking place both on the 'roller' and on the street," the ministry said in a brief statement.

 

Uber partners with major Chinese auto maker

 

Uber announced a partnership with a major Chinese auto maker as the controversial ride-sharing service revved its efforts in the country. Uber and Guangzhou Automobile Group will work together in areas including investment, sales, marketing, and promoting new energy vehicles such as hybrid or electric cars, the San Francisco-based company said in a release. Terms of the strategic partnership included Uber China promoting GAC automobiles and the group's used-car trading platform to ride-sharing service drivers and partners. "I believe we can unlock new opportunities to evolve how China moves, and open up even more transportation possibilities for riders across China," Uber China head of strategy Zhen Liu said of the alliance. Uber launched in China in February of last year and is active in 21 cities in that country, with plans to be in 100 cities within a year.

Banking

 

Deutsche Bank Appointed as Depositary Bank for the Sponsored Level III American Depositary Receipt Program of Yirendai Ltd.

 

Deutsche Bank announced its appointment as sponsored depositary bank for the capital raising Level III NYSE-listed American Depositary Receipt (ADR) program of Yirendai Ltd. (Yirendai). Yirendai is a leading online consumer finance marketplace in China connecting investors and individual borrowers. They facilitated RMB8, 748.3 million (USD 1,376.4 million) in loans from inception in March 2012 through September 30, 2015. Yirendai’s borrowers and investors come from a variety of channels, including online sources, such as the internet and its mobile applications, as well as the offline on-the-ground sales network referrals from its parent company, CreditEase.

 

JPMorgan Memo: $9 Billion Slated For Studying Blockchain And Robotics

 

An internal JPMorgan memo reveals that the lender plans to invest $9 billion in technology like robotics and the blockchain, according to Business Insider, which claims to have seen the memo. Daniel Pinto, the head of JPMorgan’s corporate and investment bank, sent the memo, which claims a major priority is to pursue innovative technologies in which they have been investing. Internal working groups have made “significant advances” and will receive additional freedom to create marketing leading platforms in the next year, the memo states. JPMorgan also has established teams for robotics, blockchain technology and big data applications, according to the memo.

 

Standard Chartered names Simon Cooper as Corporate and Institutional Banking head

 

Standard Chartered Plc has appointed Simon Cooper, 48, as chief executive officer, Corporate and Institutional Banking. He will join in April next year, after he gets the regulatory nod. At present, Cooper is managing director and chief executive of Global Commercial Banking of HSBC. The commercial banking division is one of HSBC’s largest and most profitable businesses. He joined HSBC in 1989, and has held several senior positions, including deputy chairman and CEO, Middle East and North Africa; CEO, Korea; and head of corporate and investment banking, Singapore. He also has significant experience in corporate finance, corporate banking and transaction banking.

Insurance

 

Keylane to buy insurance software solutions provider Geneva-ID

 

Keylane has signed an agreement to acquire Germany-based Geneva-ID, which provides software solutions to the insurance industry. Based in Hamburg, Geneva-ID provides software components for insurance companies in around 20 European countries. The company provides its IT solutions in the areas, including insurance core systems and distribution systems. They are available as on-premise solutions, as well as Software as a Service (SaaS). The deal will expand Keylane's product portfolio, as well as its insurance operations in the DACH region. Geneva-ID former owner and Subito CEO Martin Nußpickel said: "Together with Keylane, there is a solid base for assisting both non-life and life insurance companies in managing the challenges they are facing." Keylane provides SaaS based solutions for life and non-life insurers, as well as pension institutions. The company carries out operations in Germany, the Nordics and the UK.

 

Telehealth services becoming popular with US consumers and insurers

 

Telemedicine services, which allow doctors to treat patients via video, are gaining acceptance among consumers and insurance companies as it becomes clearer when a virtual visit is appropriate, industry executives say. Telemedicine has been more widely offered over the last five years, promoted by health plans such as Cigna Inc and New York-based insurance startup Oscar Health. As many as 15 million people used the services this year, up 50 percent from 2013, according to the American Telemedicine Association. Teladoc is working with over 20 health plans, including Oscar and Aetna Inc. It has gained momentum as insurers better understand how to use the services. Aetna plans to add virtual behavioral health consultations for issues such as depression and anxiety. Next year UnitedHealth Group will roll out services to employer-sponsored and individual plans through partnerships with Doctor on Demand, American Well and NowClinic.