Latest Industry News – 08 / 01 /2016

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

Energy & Utilities

 Spruce Finance Lines Up $175M for Solar Financing

Newly minted Spruce Finance, the result of a merger between Clean Power Finance and Kilowatt Financial, has received $175 million from U.S. Bank for solar financing. After finalizing the merger in December, the new entity (originally slated to be named Elevate Power) will provide financing for residential solar, water conservation and energy efficiency. Solar financing is available in 18 states, and water and energy-efficiency project finance is available in all states.

Mitsubishi Hitachi Power Systems and partners secure power plant contract in Indonesia

Mitsubishi Hitachi Power Systems (MHPS) along with Mitsubishi Wasa Mitra Engineering has secured an 880MW natural-gas-fired gas turbine combined cycle (GTCC) order from Indonesian state-owned electricity company PT. PLN (Persero). The “Jawa-2 Combined Cycle Power Plant Project” will include construction of GTCC power plant on the premises of Tanjung Priok Power Plant in central part of Jakarta. The operation at the new power plant is expected to begin in 2018. The Jawa-2 Combined Cycle Power Plant Project is being constructed to meet the country’s growing demand for electric power. It is also a part a plan by the Indonesian Government to expand power generation capacity to 35,000 MW.

Saudi Arabia considers IPO for national oil group, Aramco

Saudi Arabia is considering a stock market listing for its national oil group – the world’s biggest energy company and probably the most valuable company on the planet. Saudi Aramco is a highly secretive organisation but is likely to be valued at well over $1tn (£685bn). Any public share listing would be viewed as a potent symbol of the financial pain being wreaked by low prices on the world’s biggest crude exporting country. “Personally I am enthusiastic about this step,” he said. “I believe it is in the interest of the Saudi market, and it is in the interest of Aramco, and it is for the interest of more transparency, and to counter corruption, if any, that may be circling around.” The sale via an initial public offering (IPO) of any part of Saudi Aramco would be a major change in direction for a country, which has jealously guarded its enormous – and cheaply produced – oil reserves. Aramco’s reserves are 10 times greater than those of Exxon, which is the largest publicly listed oil company.

National Energy Board approves its first 40-year natural-gas export licence for LNG Canada

The board that regulates natural-gas exploration and production in Canada has approved its first 40-year export licence to a joint-venture company led by Shell. The National Energy Board permit will allow LNG Canada to export up to 1,494-billion cubic metres of liquefied natural gas from a terminal that will be located near the B.C. north-coast community of Kitimat. Until the National Energy Board Act was amended in June 2015, the maximum term length of an export permit was 25 years. The licence must still be approved by the prime minister and his cabinet. The announcement comes just days after the B.C. Oil and Gas Commission approved an LNG Canada facility permit, which outlines design, construction and operation requirements.

 

Consumer Products & Retail

Marks & Spencer names Steve Rowe as new chief executive

This is not just a new boss, this is the new M&S boss. Steve Rowe, a diehard Millwall fan who joined Marks & Spencer at the age of 15, was today named chief executive of the retailer where he has worked for more than 26 years. The 48-year-old, who began his career at the company working on Saturdays at his local store in Croydon, south London, has been chosen to succeed current chief executive Marc Bolland and will take the reins in April. His annual salary of £810,000 plus benefits and bonuses will prove to be a sizeable improvement on the hourly rate he earned as a teenager.

Tesco to charge for ‘click and collect’ orders under 30 pounds

Britain’s biggest supermarket Tesco said it will introduce a delivery charge for “click and collect” orders under 30 pounds, in a move it said will ensure the service remains sustainable. “Click and collect”, where shoppers order online before picking up their items at a chosen store, has grown fast in Britain’s e-commerce market, one of the most advanced in the world. Britain’s biggest department store group John Lewis became the country’s first major retailer to charge for smaller “click and collect” orders last July, prompting speculation that other shops could follow. Tesco, and its smaller rivals that make up Britain’s “big four” supermarkets – Wal-Mart’s Asda, Sainsbury’s and Morrisons, are seeking to regain market share, having lost out to discounter chains, Aldi and Lidl.

General Mills acquires premium meat snacks maker Epic

In the United States, General Mills has acquired Epic Provisions, a rapidly growing premium meat snacks company based in Austin, Texas. Epic will operate under General Mills’ Annie’s business, which itself has experienced strong sales growth since General Mills acquired the company more than a year ago.“The acquisition of Epic positions General Mills for exciting growth with a highly authentic brand in an entirely new natural snacking category,” said John Foraker, president of Annie’s. “A purpose-driven brand like Epic perfectly aligns with the experience and capabilities set that Annie’s brings to the table. Epic has tremendous potential for growth in the natural snacking category.  We’re committed to maintaining the great-tasting Epic snacks people love, while further building this important brand to drive positive impact we can be proud of well into the future.”

 

Automotive

Hyundai Considers Making Luxury Car in China to Lower Prices

Hyundai Motor Co. is weighing plans to build its new luxury Genesis cars in China to overcome import tariffs that add 25 percent to the sticker price and are seen as inhibiting the company’s ability to compete with locally made BMWs and Audis. South Korea’s biggest automaker still needs to reach an agreement with a local partner, said Cho Won Hong, Hyundai’s chief marketing officer. BAIC Group currently makes the Sonata and Elantra in a joint venture with Hyundai, though Cho wouldn’t say whether the two sides were discussing Genesis production. “China has a high tariff and that makes our vehicles more expensive than competitors, which makes it difficult to be profitable,” Cho said in an interview. “There are a lot of issues that need to be solved before we could go in. But we will definitely go in.”

 

Renault Nissan launching at least 10 autonomous cars in the next four years

Every car maker is heading down the autonomous driving route, but Renault Nissan  are really taking the bull by the horns by revealing they will have at least 10 autonomous cars on the market in the next four years. The first stage of the plan will see cars arriving this year with single lane control, allowing autonomous driving in a single lane – even on motorways. Next up will be multiple lane control in 2018, which will allow the car to autonomously change lanes and negotiate hazards on its own, and by 2020 the cars will come with intersection autonomy, allowing them to negotiate even complicated junctions without any input from the driver.

Ctrack launches vehicle sharing telematics solution

Ctrack has launched an advanced telematics solution to support vehicle sharing initiatives across the UK. The company has developed a sophisticated tracking system that will help electronically and remotely manage the availability, access and usage of cars and vans for this emerging vehicle rental model. The new solution will use Ctrack telematics units to provide all the necessary data capture and operational control. This can include an effective means of activating and accessing vehicles remotely – using RFID cards or a smartphone app – tracking their whereabouts and capturing journey data for accurate billing. Positioning data will also be able to be shared with mobile-or web-based booking and management tools to help customers identify the location and status of potential vehicle pool locations.

 

Banking

HSBC names new head of UK and deputy CEO to oversee ring-fenced retail bank

HSBC (HSBA.L) has named Nigel Hinshelwood to a newly-created role of head of UK and deputy CEO of HSBC Bank Plc, a memo seen by Reuters showed, as it prepares for new rules demanding the separation of retail banking from riskier business activities. Staff at Europe’s biggest bank were notified of the appointment earlier on Thursday in an internal note signed by Antonio Simoes, chief executive officer, HSBC Plc and Andy Maguire, group chief operating officer. Hinshelwood will be responsible for retail banking and wealth management, commercial banking, and private banking, as well as oversee the creation of HSBC’s ring-fenced bank. “Successful delivery of the ring-fenced bank is one of the ten strategic actions that we undertook to investors on the 9th June strategy update. Nigel’s role is therefore to deliver one of the Group’s highest priorities,” the note said.

Barclays Plans to Close Most of Its Asia Cash Equities Unit

Barclays Plc plans to shut most of its cash-equities business in the Asia-Pacific region as Chief Executive Officer Jes Staley pushes to reduce costs, according to people with knowledge of the matter. The near-exit from cash equities is part of plans to eliminate about 50 percent of jobs at the wider equities unit in the region, said the people, who asked not to be named because no announcement has been made. They declined to specify how many employees are affected. The bank is also considering whether to cut about 30 jobs in the investment-banking team in the region, one of the people said. A spokesman declined to comment.

Deutsche Bank UAE head leaves to join investment firm

Deutsche Bank’s chief country officer for the United Arab Emirates (UAE), Nadeem Masud, has left the bank to join a Dubai-based private equity and advisory firm with a Middle East focus, he said on Wednesday. Masud has joined as founding partner and board member of Aramis Partners, which last month was awarded a licence from Dubai International Financial Centre for fund management, capital raising and advisory, he said. Masud spent almost two decades with Deutsche, including 11 years in the Middle East. He joins Shailesh Doshi, who left his post last year as co-head of Deutsche Bank’s investment banking in the region to start Aramis.

 

Insurance

Allianz Global introduces new crisis management unit in North America

Corporate insurer Allianz Global Corporate & Specialty (AGCS) has launched a new crisis management unit in North America, in a bid to expand its insurance services in the region. Part of the firm’s global liability segment, the new business unit offers insurance and service solutions related to product recall and contamination and hostile environments, as well as terrorism and political violence. AGCS, through its partner firm red24, also provides its clients with crisis management assistance services on round the clock basis.

Aviva Canada says ride-sharing insurance coming in February

Aviva Canada will offer ride-sharing insurance to Ontario drivers who use their own vehicles to carry paying passengers next month, a service that could solve a major headache for ride-hailing company Uber Technologies Inc. The Canadian subsidiary of Aviva plc said the coverage is the first time it will offer ride-sharing insurance anywhere in the world. It will be available to existing Aviva personal auto policyholders for drivers that spend up to 20 hours a week driving paying passengers and costs a small portion of the income earned by the driver.

Goldman, Adviser Lose $14.2 Million Insurance Verdict to Nacchio

Former Qwest Communications International Inc. chief Joseph Nacchio won a $14.2 million insurance case verdict against a Goldman Sachs Group Inc. unit and a financial adviser who previously helped convict him of insider trading, according to a lawyer who filed the lawsuit. Nacchio, 66, was serving a federal prison term for insider trading in 2010 when he and his wife, Anne Esker, sued an adviser at Ayco Co., a firm that Goldman Sachs owns. They claimed they paid a $4.5 million premium in 2000 for variable life insurance policies that they believed had a death benefit of $94.8 million, according to papers in state court in Morristown, New Jersey.