Thursday, August 18, 2022


Scientists warn of dire effects as Mediterranean heats up


 While vacationers might enjoy the Mediterranean sea’s summer warmth, climate scientists are warning of dire consequences for its marine life as it burns up in a series of severe heat waves. 
(AP Photo/Amr Nabil, File)


CIARÁN GILES and ILAN BEN ZION
Wed, August 17, 2022 

MADRID (AP) — While vacationers might enjoy the Mediterranean Sea's summer warmth, climate scientists are warning of dire consequences for its marine life as it burns up in a series of severe heat waves.

From Barcelona to Tel Aviv, scientists say they are witnessing exceptional temperature hikes ranging from 3 degrees Celsius (5.4 Fahrenheit) to 5 degrees Celsius (9 Fahrenheit) above the norm for this time of year. Water temperatures have regularly exceeded 30 C (86 F) on some days.

Extreme heat in Europe and other countries around the Mediterranean has grabbed headlines this summer, but the rising sea temperature is largely out of sight and out of mind.

Marine heat waves are caused by ocean currents building up areas of warm water. Weather systems and heat in the atmosphere can also pile on degrees to the water's temperature. And just like their on-land counterparts, marine heat waves are longer, more frequent and more intense because of human-induced climate change.

The situation is “very worrying,” says Joaquim Garrabou, a researcher at the Institute of Marine Sciences in Barcelona. “We are pushing the system too far. We have to take action on the climate issues as soon as possible.”

Garrabou is part of a team that recently published the report on heat waves in the Mediterranean Sea between 2015 and 2019. The report says these phenomena have led to “massive mortality” of marine species.

About 50 species, including corals, sponges and seaweed, were affected along thousands of kilometers of Mediterranean coasts, according to the study, which was published in the Global Change Biology journal.

The situation in the eastern Mediterranean basin is particularly dire.

The waters off Israel, Cyprus, Lebanon and Syria are “the hottest hot spot in the Mediterranean, for sure,” said Gil Rilov, a marine biologist at Israel’s Oceanographic and Limnological Research institute, and one of the paper’s co-authors. Average sea temperatures in the summer are now consistently over 31 C (88 F).

These warming seas are driving many native species to the brink, “because every summer their optimum temperature is being exceeded,” he said.

What he and his colleagues are witnessing in terms of biodiversity loss is what is projected to happen further west in the Mediterranean toward Greece, Italy and Spain in the coming years.

Garrabou points out that seas have been serving the planet by absorbing 90% of the earth’s excess heat and 30% of carbon dioxide emitted into the atmosphere by coal, oil and gas production. This carbon-sink effect shields the planet from even harsher climate effects.

This was possible because oceans and seas were in a healthy condition, Garrabou said.

“But now we have driven the ocean to an unhealthy and dysfunctional state," he said.

While the earth's greenhouse gas emissions will have to be drastically reduced if sea warming is to be curtailed, ocean scientists are specifically looking for authorities to guarantee that 30% of sea areas are protected from human activities such as fishing, which would give species a chance to recover and thrive.

About 8% of the Mediterranean Sea area is currently protected.

Garrabou and Rilov said that policymakers are largely unaware of the warming Mediterranean and its impact.

“It’s our job as scientists to bring this to their attention so they can think about it,” Rilov said.

Heat waves occur when especially hot weather continues over a set number of days, with no rain or little wind. Land heat waves help cause marine heat waves and the two tend to feed each other in a vicious, warming circle.

Land heat waves have become commonplace in many countries around the Mediterranean, with dramatic side effects like wildfires, droughts, crop losses and excruciatingly high temperatures.

But marine heat waves could also have serious consequences for the countries bordering the Mediterranean and the more than 500 million people who live there if it's not dealt with soon, scientists say. Fish stocks will be depleted and tourism will be adversely affected, as destructive storms could become more common on land.

Despite representing less than 1% of the global ocean surface area, the Mediterranean is one of the main reservoirs of marine biodiversity, containing between 4% and 18% of the world’s known marine species.

Some of the most affected species are key to maintaining the functioning and diversity of the sea's habitats. Species like the Posidonia oceanica seagrass meadows, which can absorb vast amounts of carbon dioxide and shelters marine life, or coral reefs, which are also home to wildlife, would be at risk.

Garrabou says the mortality impacts on species were observed between the surface and 45 meters (around 150 feet) deep, where the recorded marine heat waves were exceptional. Heat waves affected more than 90% of the Mediterranean Sea’s surface.

According to the most recent scientific papers, the sea surface temperature in the Mediterranean has increased by 0.4 C (0.72 F) each decade between 1982 and 2018. On a yearly basis, it has been rising by some 0.05 C (0.09 F) over the past decade without any sign of letting up.

Even fractions of degrees can have disastrous effects on ocean health, experts say.

The affected areas have also grown since the 1980s and now covers most of the Mediterranean, the study suggests.

“The question is not about the survival of nature, because biodiversity will find way to a survive on the planet,” Garrabou said. “The question is if we keep going in this direction maybe our society, humans, will not have a place to live.”

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Ilan Ben Zion reported from Jerusalem.

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Follow all AP stories on climate change issues at https://apnews.com/hub/climate-and-environment

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Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

Stimulus checks helped ‘democratize investing’ among Black and Hispanic Americans, study finds


·Personal finance writer

Federal stimulus checks helped millions of Americans stay financially afloat during the worst of the pandemic. For some, the payments also allowed them to finally invest.

A new study revealed that two in five stimulus check recipients used the funds for more than one purpose. Most notably, 47% of Black and Hispanic Americans used the payments in more ways than one, compared with 32% of white adults, according to the 2021 Financial Capability Study from FINRA Investor Education Foundation, a nonprofit dedicated to financial education and empowerment.

The analysis conducted from June to October 2021, surveyed over 26,000 stimulus recipients in the U.S. and found that Black and Hispanic American adults between the ages of 18 and 40 were more likely to invest some of the funds in the stock market than white respondents in the same age group.

“Many stimulus recipients reported spending the money in multiple ways — particularly Black/ African-American and Hispanic adults,” Gerri Walsh, president of the FINRA Investor Education Foundation, told Yahoo Money. “In fact, while Black and Hispanic young adults were more likely to invest than whites, they were also more likely to use the money to make purchases and pay bills.”

The IRS sent the third and last round of Economic Impact Payments to eligible individuals in March 2021. Most Americans received up to $1,400 in stimulus checks, and an additional $1,400 for each qualifying dependent. (Credit: Getty Creative)

Stimulus checks kept household finances stable

Stimulus checks helped bolster household finances, according to FINRA’s study, and contributed to some of the financial resilience documented in 2021.

More than 169 million payments were delivered by the IRS in the third and final round of stimulus checks to households across the country last year, with $1,400 reaching most households. According to FINRA’s financial capability study, Americans used the funds for its intended purpose.

Among those surveyed, more than 78% reported that they received at least one pandemic-related stimulus payment. Some 59% of respondents used the money to make purchases or pay bills, consistent with the goals of the American Rescue Plan, the analysis found. Another 38% added the money to their savings, while 33% used it to pay down debt.

During the pandemic, stimulus checks helped Americans stay afloat as many experienced an unexpected drop in income. According to FINRA, stimulus payments and enhanced unemployment benefits were responsible for most of the financial resilience documented in 2021. (Credit: Getty Creative)

Additionally, some respondents said they donated some funds to individuals or organizations or invested in the stock market (7% and 6%, respectively).

“Nearly 6 in 10 respondents reported having made purchases or paid bills with the stimulus money they received, suggesting that a majority used the stimulus as intended,” Walsh said. “Of course, we need to keep in mind that many used stimulus funds for more than one purpose.”

The stimulus funds reshaped how Americans thought about money, which may have contributed to a boost in their understanding of personal finances, Walsh said.

“Given that more households had emergency savings in 2021 than 2018, despite pandemic-related economic turmoil, stimulus payments may have at least partly contributed to a rise in some financial capability measures we saw from 2018 to 2021,” Walsh said. “However, more work is needed to understand the relationship between stimulus payments and financial capability.”

Young adults between the ages of 18 and 40 were more likely to invest some of their stimulus funds in the stock market, FINRA found. Those most likely to invest were Black and Hispanic American men. (Credit: Getty Creative).

Younger adults were more likely to invest stimulus funds

Some stimulus checks ended up in the stock market, and those most likely to invest were younger adults of color with college degrees, and folks with higher incomes.

Compared to all other age groups, those between the ages of 18-40 were found to have spent some of their stimulus in the stock market.

Among 18- to 40-year olds, Black Americans were 6.27% more likely to invest their stimulus funds than whites. According to FINRA, this was followed by Hispanic respondents who were 2.5% more likely to report using the stimulus payments for investing versus white respondents.

According to Walsh, the financial cushion of the stimulus checks provided “lower barriers to investing” for Black and Hispanic young adults.

“Including ease of access and the ability to invest with smaller amounts of money has in several ways democratized investing,” she said.

“It could be that when both the opportunity and the means to invest are presented, demographic groups that are typically underrepresented in the investor ranks might consider investing,” Walsh said. “Since investing is one avenue to decrease the wealth gap in America, this is in many ways an encouraging finding.”

Gabriella is a personal finance reporter at Yahoo Money. Follow her on Twitter @__gabriellacruz.

Canadian Solar (CSIQ) Surpasses Q2 Earnings and Revenue Estimates

Zacks Equity Research
Thu, August 18, 2022 



Canadian Solar (CSIQ) came out with quarterly earnings of $1.07 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 52.86%. A quarter ago, it was expected that this solar wafers manufacturer would post a loss of $0.05 per share when it actually produced earnings of $0.14, delivering a surprise of 380%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Canadian Solar , which belongs to the Zacks Solar industry, posted revenues of $2.31 billion for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 3.71%. This compares to year-ago revenues of $1.43 billion. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Canadian Solar shares have added about 25.4% since the beginning of the year versus the S&P 500's decline of -10.3%.

What's Next for Canadian Solar?

While Canadian Solar has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Canadian Solar: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.92 on $1.97 billion in revenues for the coming quarter and $3.06 on $7.45 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Solar is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Azure Power (AZRE), is yet to report results for the quarter ended June 2022.

This solar power producer is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of +15.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Azure Power's revenues are expected to be $78.8 million, up 32% from the year-ago quarter.
The BlackRock Trust: Crypto Legitimacy or the Beginning of the End for Bitcoin?

Zac Colbert
Thu, August 18, 2022 

After BlackRock, the largest asset manager in the world, announced on Aug. 11 that it will launch a private bitcoin trust for its clients, some crypto enthusiasts said the move could legitimize the digital asset in the eyes of more traditional investors.

BlackRock’s new private trust will make bitcoin available to its institutional clients, tracking bitcoin’s performance, offering direct exposure to the price of the cryptocurrency and of course, trading options.

This article is excerpted from The Node, CoinDesk's daily roundup of the most pivotal stories in blockchain and crypto news. You can subscribe to get the full newsletter here.

“Despite the steep downturn in the digital asset market, we are still seeing substantial interest from some institutional clients in how to efficiently and cost-effectively access these assets using our technology and product capabilities,” BlackRock said in its press release.

The news comes shortly after the firm announced a partnership with Coinbase to provide clients of its Aladdin platform access to cryptocurrency trading and custody services. These developments highlight how traditional investors and institutions from banks to hedge funds are moving into the crypto market, indicating that digital assets are here for the long haul.

These fresh endorsements lend crypto ever-stronger legitimacy, bringing digital assets into the more traditional financial industry and therefore making them more accessible to both new and old investors.

But does advocacy from a multinational investment-management firm go against everything Bitcoin originally stood for? Especially when, just five years prior, BlackRock CEO Larry Fink called bitcoin an “index of money laundering.”

Bitcoin’s anarchic beginnings in 2009 heralded the potential democratization of finance. Blockchain technology promised a more open and secure approach to currency for everyone. So with bitcoin now trending in mainstream Wall Street investment portfolios, has the leading cryptocurrency betrayed its revolutionary roots?

See also: What Jack Dorsey's Beef With 'Web 3' Is Really About | David Z. Morris

At the end of June, Coinbase’s stock was at its all-time low of $47.02. But the announcement of BlackRock and Coinbase’s partnership may be partly responsible for the recent upward trajectory of the crypto exchange’s share price.

But Coinbase shares are still down 75% from their peak, and online skeptics feel BlackRock’s partnership with the once top-of-its-game Coinbase is nothing more than a power grab by a centralized financial institution.

And with the added possibility of new regulations from U.S. Congress, the news further fuels fears that the current crypto winter is not fleeting, but the beginning of the end for Bitcoin.

As is always the case with the market, only time will tell.
Dan Price resigns as CEO of payments firm after misconduct allegations

Edward Helmore
Thu, August 18, 2022 


Dan Price, the chief executive of a Seattle-based credit card processing company who made headlines when he implemented a $70,000 minimum wage, has abruptly resigned after accusations of misconduct and misdemeanor criminal charges that he assaulted a woman after a dinner meeting.

Price, who started Gravity Payments in 2004 at age 19, wrote in an email he was stepping away from the company because “my presence has become a distraction here.

“I also need to step aside from these duties to focus full time on fighting false accusations made against me,” he added. “I’m not going anywhere.”

According to the Seattle Times, Price started the company in 2004 in his dorm at Seattle Pacific University using money from his older brother. He got the idea for the payments system while playing in a rock band at a coffee shop.

Eleven years later, he shocked the business community by announcing that he would cut his $1m salary to accommodate pay rises for all 120 employees, from sales to administration. Price told the New York Times that workers would be getting raises over three years, bringing the minimum salary of every employee to $70,000. The company called the program “The Gravity of $70k”.

“Is anyone else freaking out right now?” Price told employees at the time. “I’m kind of freaking out.”

Price later credited a 2010 academic paper titled “High income improves evaluation of life but not emotional well-being” for the idea and noted the growing disparities between executives and line workers, which was then at around 354-1 but has now grown to 670-1, according to the Institute for Policy Studies. Slightly less than half of the company’s 70 employees saw their pay double.

“The market rate for me as a CEO compared to a regular person is ridiculous. It’s absurd,” Price said at the time. “As much as I’m a capitalist, there is nothing in the market that is making me do it.”

The move established Price as a progressive CEO, and his company marketed itself as being for “the little gal or guy who believes in the American dream and is willing to work to chase it”.

But Price ran into legal trouble. He was sued by his brother, who claimed he was overpaying himself. The lawsuit failed. Then Bloomberg reported on a 2015 Tedx Talk given by Price’s wife, Kristie Colon, in which she described being waterboarded and beaten by her ex. Colon did not name Price, who told the outlet that the events “never happened”.

Mysterious flyers appeared near Gravity’s headquarters asking, “Have you been abused by Dan Price? We hear you. We believe you. We support you.”

Then, in February this year, Price was charged with misdemeanor assault and reckless driving. According to court documents, reported by the Seattle Times, a 26-year-old woman called Seattle police to report that she had met Price at a restaurant to discuss “professional matters”.

In his Tesla sedan after the dinner, prosecutors said, Price had attempted to kiss the woman, grabbed her throat when she refused, and then performed “doughnuts” with the car in a parking lot. Price has pleaded not guilty to the charges.

“Mr Price respects the legal process and is confident that he will be vindicated in court,” Price’s defense attorney, Mark Middaugh, wrote in an email to the Seattle paper.

After resigning on Wednesday, Price posted a statement on Twitter listing his accomplishments in workers’ pay, overall employee satisfaction, time off, parental leave and retention. “I’m proud of what we’ve done,” he said.
CRIMINAL CAPITALI$M
Investment Bank Behind 32,000% IPO Probed by Hong Kong Regulator

Cathy Chan and Kiuyan Wong
Wed, August 17, 2022

LONG READ




(Bloomberg) -- The Hong Kong financial group behind an initial public offering that stunned Wall Street by soaring more than 32,000% following its debut has drawn regulatory scrutiny over deals it arranged in the Asian financial hub.

The previously unreported probe by Hong Kong’s securities watchdog into AMTD Group Co., which is run by former UBS Group AG banker Calvin Choi, predates the US listing of its unit AMTD Digital Inc. Despite reporting just $25 million of revenue in the year ending in April 2021, AMTD Digital’s market capitalization briefly surged above $400 billion in early August -- surpassing giants including Goldman Sachs Group Inc. and JPMorgan Chase & Co. The stock has since tumbled more than 90%.

Hong Kong’s Securities and Futures Commission searched AMTD Group’s office and Choi’s home in February 2021, according to people familiar with the matter, who asked not to be named discussing private information. Investigators were looking into its underwriting arrangements as recently as November, one of the people said. The full scope of the inquiry and its current status are unclear. Some SFC probes never result in charges and those that do can often take years to become public.

The regulator’s scrutiny adds to a string of controversies in recent years involving Choi, who is appealing a separate SFC decision to ban him from the securities industry for two years over what the regulator said were conflicts of interest from his time as a UBS dealmaker. A unit of China Minsheng Investment Group, which bought a major stake in AMTD Group in 2015, publicly accused Choi of financial fraud, even putting up posters with his face on the streets of Hong Kong, according to a 2020 Caixin report. It’s unclear whether CMIG took any further legal steps.

Choi, who didn’t respond to repeated phone calls and text messages, has appealed the SFC ruling and a tribunal will hear the case in December. In September 2020 he told newspaper Tai Kung Pao that the allegations from CMIG were untrue and he had never had any authority over CMIG funds.

An SFC spokesman declined to comment. An official at CMIG declined to comment. AMTD Digital didn’t immediately respond to requests for comment.

The financier’s firm is one of at least seven from Hong Kong or mainland China to see wild price swings after listing in the US this year. US Securities and Exchange Commission Chair Gary Gensler has repeatedly warned about the risks of investing in Chinese companies and last week said the regulator pays close attention to wild market moves, without specifically mentioning any firms.

The SFC probe has focused at least partly on small-cap IPOs that were underwritten by a unit of AMTD Group, the same one that arranged the US listing of AMTD Digital, people familiar with the matter said. Deals scrutinized by the SFC include IPOs of IntelliCentrics Global Holdings Ltd. and China Bright Culture Group, the people said.

Investment Avenues


The Hong Kong stock exchange in June 2021 sanctioned two executives at IntelliCentrics Global after the company used more than 90% of the proceeds from its 2019 IPO to buy offshore promissory notes via AMTD. The bourse noted that the company has said its purchase “was a temporary and interim measure” to manage IPO proceeds. Even so, the exchange found that the firm and two executive directors had breached its rules.

China Bright Culture Group, a television producer, invested $70.8 million -- or 60% of the amount raised selling shares in Hong Kong -- in a promissory note issued by L.R. Capital Property Investment Ltd., according to its 2021 annual report. The full amount was later redeemed.

L.R. Capital Property shares the same Cayman Islands address -- and company secretary -- as L.R. Capital Management Co., in which Choi’s father held a stake until December 2021, according to filings with corporate registries in the British territory and Hong Kong. The latter company, a former majority owner of AMTD Group, played a part in the decision by the SFC to ban Choi, according to a ruling by the Securities and Future Appeals Tribunal in Hong Kong.

According to people with knowledge of how AMTD arranged deals, the firm worked with select investors to cover shortfalls in demand for IPOs. After the IPO, the newly listed company would invest similar amounts into wealth products managed by firms linked to AMTD, the people said.

If shares of the newly listed company rose after the IPO, the investors would sell and share the profit with the listed company, the people said. The IPO issuer would then redeem its investments in AMTD-linked wealth products, the people said. The issuer also agreed to cover any potential losses suffered by the select investors in the IPO, the people added.

Documents seen by Bloomberg News show close ties between some of the investors. Three companies that invested in one recent IPO underwritten by AMTD, for example, shared the same company secretary and two of them are registered on the same Hong Kong address, the documents show.

“Any kind of manipulation that is obscuring the nature of the cash flow or the nature of the company is a form of market manipulation that regulators are, or should be, watching out for,” said Veronique Lafon-Vinais, associate professor of business education at Hong Kong University of Science and Technology, speaking in general.

Without prior consent from regulators, listing rules in Hong Kong prohibit underwriters from allocating IPO shares to “connected clients,” or nominee companies unless the name of the ultimate beneficiary is disclosed, according to the placing guidelines.

AMTD Group has helped arrange at least 62 IPOs in Hong Kong and the US, including those of Ebang International Holdings Inc. and Molecular Data Inc., which together raised close to $200 million in New York in 2020.

In an April 2021 report, short seller Hindenburg Research alleged that both firms had diverted a majority of the funds raised into bonds issued by companies linked to AMTD.

In a statement last year, Ebang said that as part of its treasury management it had invested proceeds in bonds in “arm’s length transactions facilitated by AMTD,” and has redeemed the investment in full. Molecular Data invested $58.4 million in wealth management products issued by L.R. Capital Property, according to a company filing. The firm served notice for full redemption of the note at the end of 2021.

Intellicentrics, China Bright Future, Ebang and Molecular Data didn’t respond to emails seeking comment.

Connected Companies

Hong Kong’s market has long been plagued by allegations of transactions between closely connected companies. In 2018, the SFC’s enforcement chief accused a “nefarious network” of listed companies, brokers, money lenders and advisers of enriching themselves off unsuspecting investors. The regulator has since clamped down on the small-cap market, known as GEM, to root out the extreme price swings caused by so-called “ramp-and-dump” schemes that inflated the value of thinly traded companies.

Similarly extreme gyrations are now confounding US investors. AMTD Digital shares surged at one point to as high as $2,555.30 from its $7.80 IPO price, before falling to $186.93 on Wednesday. Another affiliate, AMTD Idea Group, climbed as much as 536% in New York. A little know financial services company, Magic Empire Global Ltd. -- unaffiliated with AMTD -- jumped as much as 2,825% following its debut on Aug. 6 before tumbling again. Other Chinese or Hong Kong-based firms have also seen big swings after listing in New York.

AMTD Group was founded in 2003 by Commonwealth Bank of Australia and billionaire Li Ka-shing’s CK Hutchison Holdings Ltd. Morgan Stanley’s private equity unit is also an investor, though it has pared back in recent years.

Choi took the helm after leaving UBS in 2015 with the backing of China Minsheng, which then held an effective 25% stake in AMTD Group. Choi’s mandate was to diversify away from insurance brokering to investment banking, asset management and financial technology. The US-listed AMTD Idea calls itself Asia’s largest independent investment bank and has boasted of “unparalleled access” to capital from Hong Kong tycoons and a “SpiderNet” of business contacts.

Choi is now the sole owner of a vehicle that controls 32.5% of AMTD Group, according to a filing. L.R. Capital, which Choi was linked to in the SFC probe, was a majority owner but sold its shares in 2021. AMTD Group owns 50.6% of AMTD Idea, which on Aug. 16 said it would inject $500 million in assets into AMTD Digital to bring its ownership to 87.64%.

A Hong Kong native and Canadian citizen, Choi has been a fixture at annual financial technology events in Singapore in recent years. In 2019, he joined former Hong Kong Chief Executive Carrie Lam on a foreign trip to Thailand and Malaysia, but a bid last year to join the 1,500-person electorate that picks the city’s leader was rejected by a vetting committee.

In the ban on Choi issued in January, the SFC said he failed to disclose his connection to L.R. Capital, which was an integral part of deals he was working on at UBS in 2014 and 2015.

In a statement last year, the financier hit back at critics, without mentioning any specifics. “There are those who envy and [are] jealous, and those who are cold-eyed and mockers, and malicious, there are slanderers,” he said. “However, entrepreneurs must insist that development is the last word.”

Some of AMTD’s most high-profile backers are now distancing themselves from the firm. Li’s CK Group plans to sell its remaining stake in AMTD Group, it said earlier this month. CK Group said it held less than 4% of AMTD Group and isn’t invested directly in AMTD Digital.

Morgan Stanley’s private equity unit, which bought a stake in AMTD Group in 2014, later sold most of its holding. It has no involvement in daily operations and is looking to exit the remaining 1.7% it still holds, a person familiar with the matter said.

Media representatives at Morgan Stanley and CK Group declined to comment.
China Is Ramping Up Swiss Gold Imports, Signaling Better Demand
TICKLING THE GNOMES OF ZURICH'S BEARDS

Eddie Spence and Ranjeetha Pakiam
Thu, August 18, 2022 


(Bloomberg) -- China’s gold imports from the major refining hub of Switzerland jumped to the highest in more than five years, signaling demand improved as the Asian nation relaxed strict Covid measures.

One of the world’s top bullion buyers, China shipped in more than 80 tons from Switzerland in July, according to Swiss Federal Customs Administration. That’s more than double the previous month and eight times more than in May.

The data indicates that Chinese gold demand is picking up, after being hurt by lockdowns to control Covid outbreaks in several major cities. While the country’s purchases rarely have the power to drive prices higher, they can provide a floor when Western investors sell.

“China has gone from a situation where everything was closed to things are back to semi-normality,” said Nikos Kavalis, a managing director at consultancy Metals Focus Ltd. “The market’s still not great, but it’s definitely a lot better than it was in April.”

Gold prices remain down for the year, after nearing a record high in March as Russia’s invasion of Ukraine stoked demand for a haven. Prices have been supported between about $1,700 and $1,800 an ounce, even as the Federal Reserve embarks on aggressive interest-rate hikes that normally reduce the metal’s appeal.

Gold in China has also fetched a premium of about $7 to international prices, a relative high level that will have spurred local banks to import bullion, according to Kavalis. Only lenders with state-issued licenses are permitted to bring gold into China.
Flotilla of Diesel Ships Heads to Europe Amid Energy Crisis

Elizabeth Low
Thu, August 18, 2022


(Bloomberg) -- A fleet of ships carrying diesel, one of the world’s most important fuels, is heading for European markets facing energy-security threats from high temperatures, soaring gas prices, and Russian disruption.

Five ships transporting close to 3 million barrels are poised to move from Asia to Europe so far in August, preliminary data from Vortexa show. That’s the most in five months on a barrel-per-day basis. Shipments from the Middle East to Europe are also set to expand.

The rising flows of diesel -- used in industries, transport and for power -- toward Europe are a result of market dislocations caused by higher prices at the hub of Amsterdam, Rotterdam and Antwerp (ARA) relative to Asia, said traders. China’s sputtering economy and a seasonal demand lull in India also contributed to Asia’s oversupply, they added.

Europe has been struggling with a historic drought that’s causing a plunge in water levels on the Rhine River. The waterway that links oil tanks in the ARA hub to consumers in inland Europe is currently impassable to most barges, creating a supply bottleneck that could prompt draw-downs in their stockpiles that will need to be replenished ahead of winter.

Countries including Sweden and Germany have warned of rising oil consumption in a bid to replace pricey gas, while the region has been purchasing more coal from across the world. It’s still unclear, however, just how strongly Europe’s demand will rebound this year-end due to a slowdown in the region’s economy.

East-to-West Arbitrage

Diesel that will load from India and North Asia in August takes close to a month to reach Europe, arriving at its destination just as summer comes to an end. Some of the vessels on the so-called arbitrage route to Europe include larger vessels such as Suezmaxes that can carry up to 1 million barrels of oil.

“Traders are taking opportunity of the economies of scale to make the East-West arbitrage workable by loading their cargoes onto these larger tankers,” said Serena Huang, lead Asia analyst for Vortexa.

Gas-to-oil switching is forecast to surge this year, with the International Energy Agency boosting its forecast for global oil demand growth by 380,000 barrels daily on the expectation that industry and power generators will switch fuels. The extra demand that prompted the revision is “overwhelmingly concentrated” in the Middle East and Europe, the agency said. Its bullish view was echoed by Goldman Sachs Group Inc.

Additionally, the risk of Russian gas-supply disruptions and concerns over energy security are set to encourage more diesel stockpiling. Europe’s benchmark for gas has nearly tripled this year, soaring way beyond the 18% climb in oil prices during the same period.

Meanwhile, Asian refineries are expected to churn out 215,000 barrels a day more diesel than the region requires, while supplies from the Middle East also rise, according to JY Lim, an analyst at S&P Global Commodity Insights.

New refinery capacity in the Middle East “mean a change in the east of Suez gasoil supply/demand balance, meaning that the structural arbitrage may be open more often and for longer,” said Kevin Wright, an analyst at Kpler. Diesel flows from Asia to Europe are likely to rise during the rest of the third quarter, he said.
Omers Posts 0.4% Loss as Equity Markets Sap PE Gains

Layan Odeh
Thu, August 18, 2022 



(Bloomberg) -- The Ontario Municipal Employees Retirement System posted a 0.4% loss for the first six months of 2022 as a decline in public stocks exceeded the pension fund’s private equity gains.


“The geopolitical environment was incredibly, not only unpredictable, but tragic in so many ways,” Omers Chief Executive Officer Blake Hutcheson said in an interview Thursday. “We have inflation that’s today higher than it’s been in 40 years. Central banks are raising rates quicker than they have since any time since 1994.”

The fund’s public stock holdings dropped 13.2% and the bond portfolio slid 2.5%, it said in a statement, while private equity investments gained 7.7%.


Omers is a net-seller so far this year as the firm realized investments in private equity, infrastructure and real estate -- including selling its interests in GNL Quintero SA, a liquid natural gas terminal in Chile, and in Sony Center in Berlin. The Toronto-based pension plan has also agreed to sell its interest in the holding company that controls Michigan-based Midland Cogeneration Venture.

“Over the last year, we were actually expecting some downturns and making sure we were armed for the next wave of investment opportunities,” Hutcheson said.

Fear of a recession has weighed on deal-making and initial public offerings, crunching valuations and restricting the ability of private equity firms to exit investments. Omers has a strong war chest available to purchase high quality assets, according to Hutcheson. “We will be able to continue to buy in this cycle but very selectively -- very high quality assets, very much on target with strategy.”

The pension fund’s net assets decreased to C$119.5 billion ($92.3 billion).

Montreal-based Caisse de Depot et Placement du Quebec reported a 7.9% loss in the first six months of the year, while Canada Pension Plan Investment Board, the country’s largest pension fund, posted a negative 4.2% return in its fiscal first quarter. Ontario Teachers’ Pension Plan said this week it had a 1.2% net return in the first six months of the year.
Oil companies work around Jones Act to supply U.S. fuel markets


 Oil tankers are docked at the port of Tuxpan


By Laura Sanicola
Wed, August 17, 2022

(Reuters) - U.S. oil companies are working around a century-old shipping law to supply fuel to the U.S. East Coast, according to data from Refinitiv and oil trading sources, as high demand for gasoline and global disruptions in fuel markets sent prices higher.

Traders are increasingly sending unfinished gasoline components from the Gulf Coast to Buckeye Partners LP’s terminal in the Bahamas, also known as Borco, where they are blended into finished gasoline to be sent to the U.S. East Coast. The uncommon trade is a sign of heavy demand for products up and down the coast, home of some of the nation's largest consumer markets.

The trade represents a legal workaround to the Jones Act, which requires goods moved between U.S. ports to be carried by ships built domestically and staffed by U.S. crew.

There is a limited quantity of those vessels, which raises the cost of those shipments.

Since March, at least eight vessels have transported gasoline components from the Gulf Coast to the Borco terminal in the Bahamas, and then delivered finished gasoline from there to ports along the Atlantic, according to shipping data.

The majority of the vessels were chartered by BP Plc. BP declined to comment.

Normally, Gulf Coast sellers make bigger profits either by exporting products, or by sending gasoline or diesel to the East Coast by way of the Houston-to-New Jersey Colonial Pipeline, which carries roughly 2.5 million barrels per day of gasoline and other fuels.

That line is jammed right now as U.S. East Coast refineries struggle to meet demand. Those refiners are running at more than 98% capacity, according to the U.S. Energy Information Administration.

Shippers submit requests to Colonial to move refined products on Colonial, but right now those requests exceed the line's overall capacity. Space on the line is more expensive than in years, traders said, making it suddenly profitable to transport goods with the Bahamas stop.

This trade does not run afoul of the Jones Act, but it was uncommon before Russia's invasion of Ukraine, and did not occur in 2021, according to available shipping data.

In 2021, the United States exported 146,000 barrels of gasoline components in total to the Bahamas, according to the EIA. In May 2022 alone, the most recent data available, that figure was 498,000 barrels.

Last year, the United States imported 699,000 barrels of finished gasoline from the Bahamas, or 1.8% of all imports of that product for the year. So far in 2022, the United States has already imported 1.2 million barrels of gasoline from the Bahamas.

In March, the Agean Star and Gulf Rastaq loaded fuel components in Houston, discharged at Borco and later supplied finished gasoline to Savannah, Georgia, and Jacksonville, Florida, according to shipping data.

The Nave Luminocity and Navig8 Success vessels loaded gasoline components in the Gulf, discharged at Borco and then transported finished gasoline to New Jersey and New York, shipping data showed. Several more ships made similar voyages through the summer.

(Reporting by Laura Sanicola in New York; Editing by Matthew Lewis)