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Starbucks names Chipotle boss Brian Niccol as new CEO

By - Aug 13,2024 - Last updated at Aug 13,2024

Chipotle CEO Brian Niccol walks across the 14th hole during the Pro Am event prior to the Memorial Tournament presented by Workday at Muirfield Village Golf Club on June 05, 2024 in Dublin, Ohio. (AFP photo)

NEW YORK — Starbucks said Tuesday that Brian Niccol, chief executive at Chipotle, would be the coffee chain's new CEO — just over a year after current boss Laxman Narasimhan took over the role.

Narasimhan steps down as chief executive and as a member of the Starbucks board "with immediate effect," said the company in a statement.

The leadership shifts come as Starbucks pushes to turn around its business, while contending with broad-based sales declines in its most recent financial results.

Starbucks has cited weakening consumer sentiment and difficult market conditions in China as factors in its troubles.

"Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth," said Starbucks board chair Mellody Hobson in a statement as the comapny announced the leadership changes.

Niccol has served as Chipotle's CEO since 2018.

In naming him Starbucks' new CEO, the company noted that his work at Chipotle had "driven significant growth and value creation," citing revenue that has nearly doubled and rising profit.

Narasimhan, a veteran of PepsiCo and other consumer brands, had taken over the top spot in 2023 after a period working with longtime Starbucks CEO and interim boss Howard Schultz.

The statement noted that Narasimhan, during his tenure, drove innovation in the brand's supply chains and boosted its store operations.

Niccol will start in his new role on September 9, with Starbucks chief financial officer Rachel Ruggeri serving as interim CEO until then.

Waste into gold — Oyster shells repurposed as magic 'Seawool'

By - Aug 12,2024 - Last updated at Aug 12,2024

TAINAN, Taiwan — Growing up on Taiwan's west coast where mollusc farming is popular, Eddie Wang saw discarded oyster shells transformed from waste to function — a memory that inspired him to create a unique and environmentally friendly fabric called "Seawool".

Wang remembered that residents of his seaside hometown of Yunlin used discarded oyster shells that littered the streets during the harvest as insulation for their homes.

"They burned the shells and painted the residue on the walls. The houses then became warm in the winter and cool in the summer," the 42-year-old told AFP at his factory in Tainan.

"So I was curious about why oyster shells have such a miraculous effect."

Wang's Creative Tech Textile company, established in 2010, was already producing an "eco-fabric" — a polyester material made out of recycled plastic bottles — but he felt its texture was a bit "ordinary".

So he started working with a research institute to experiment making fabric out of the oyster shell residue, in 2013 coming up with the right formula that produces a material similar to wool.

Today, his factory in Taiwan uses around 100 tonnes of oyster shells a year to churn out around 900 tonnes of Seawool, a trademarked and patented fabric.

The fabric and clothing generate around NT$200 million ($6.1 million) a year, with the bulk of it sourced by outdoor and sustainability clothing brands in Europe and the United States.

The Made-in-Taiwan fabric would not be possible without the island's unique oyster farming culture, Wang said.

 

'A magical yarn'

 

"This industry chain cannot be found anywhere else overseas," he says.

"We have people to harvest oysters, we have specialists to clean oyster shells, and we have people for drying and calcining [treating] oyster shells."

The small island of Taiwan has a hefty appetite for oysters, harvesting an estimated 200,000 tonnes a year with the fleshy meat appearing in local cuisine such as crispy omelettes and silk-like noodle dishes.

But its popularity also means that about 160,000 tonnes of shells are discarded yearly, according to data from the agricultural ministry.

They pile up on the streets of aqua-farming towns — the majority in western cities such as Yunlin, Changhua and Chiayi — causing environmental issues by emitting fishy smells and providing breeding sites for mosquitos.

At Wang's factory, the shells are ground into nano beads and combined with yarn made from recycled plastic bottles.

"It creates a magical yarn," he said. "Oyster shell is a material with low thermal conductivity — it does not absorb heat nor does it dissipate heat."

Turning the shells — which capture and store carbon dioxide from the atmosphere — into Seawool also does not require water, making it a "low-carbon product", said Wang.

A half-hour drive from his showroom where activewear jackets, sweaters and pants are displayed, state enterprise Taiwan Sugar Corporation (TSC) also has a factory that grinds discarded shells into a powder that is used in manufacturing household items, like incense sticks.

The crushed shells help to reduce smoke and the toxic chemicals emitted from burning incense, said Chen Wei-jen, deputy chief of TSC's biotech business division.

From waste to gold

 

"We hope oyster shells can have multiple industrial applications and interested companies can use it as a raw material to make their products more environmentally friendly and add value to their products," Chen said.

Before the shells get to the factories, farmers in Chiayi — a county famed for producing oysters — collect the molluscs at dawn from racks installed along the coast.

They are sorted into baskets before being sent to plants such as Dai Sen-tai's factory, where they are machine-washed before being sent to small family-run businesses that shuck the meat and send the shells south.

Dai, whose family have been in the oyster farming industry for three generations, said he is happy that Taiwan is breathing new life into the sea waste.

"When I was a child, no one wanted oyster shells — they were dumped and discarded everywhere," he told AFP.

"It's good that the waste has been turned into gold now."

Hong Kong court gives developer Kaisa more time to restructure debt

Kaisa reported total liabilities of $32b as of end of last year

By - Aug 12,2024 - Last updated at Aug 12,2024

The Hong Kong flag is seen near the High Court in Hong Kong on July 28, 2023 (AFP file photo)

HONG KONG — A Hong Kong court on Monday gave troubled Chinese developer Kaisa four more weeks to work with bondholders to come up with a viable restructuring plan.

China's property sector has yet to bounce back from Beijing's 2020 crackdown on excessive borrowing and rampant speculation, with some developers now undergoing restructuring after defaults.

Shenzhen-based Kaisa is the second-largest issuer of offshore bonds among Chinese developers, behind Evergrande and first defaulted on its debt in 2021.

Judge Anthony Chan agreed on Monday to adjourn the case to September 9, an arrangement agreed on by both the company and the petitioners.

"The parties are in agreement that the case should be adjourned for four weeks with the expectation that we will finally be able to sign the agreement this time," said lawyer Eva Sit, representing the bondholders.

Kaisa reported total liabilities of 226 billion yuan ($32 billion) as of the end of last year.

At a June hearing, the developer's representative said the amount of debt being restructured was around $13 billion.

The judge at the time warned that Kaisa had "no excuse" for failing to make progress and the court may not grant further adjournments.

The winding-up petition against Kaisa was filed last July.

UK probes Amazon partnership with AI firm Anthropic

By - Aug 12,2024 - Last updated at Aug 12,2024

Luxembourg is tasked with investigating Amazon because the company has its EU headquarters there. (AFP file photo)

LONDON — Britain's competition regulator recently said it had launched an inquiry into a partnership between US e-commerce giant Amazon and Anthropic, an American developer of artificial intelligence.

The move comes after the Competition and Markets Authority in April said it was examining tie-ups between artificial intelligence firms and their US big tech partners Amazon and Microsoft.

Action by the CMA follows similar examinations by regulators in the United States and European Union.

In a statement Friday, the British regulator said it was considering whether the Amazon-Anthropic partnership "has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services".

This follows Amazon's investment of up to $4 billion in Anthropic, which is developing a rival to ChatGPT-style AI chatbot.

Amazon hit out at the decision, saying in a separate statement that its "collaboration with Anthropic does not raise any competition concerns or meet the CMA's own threshold for review".

It added: "By investing in Anthropic, Amazon, along with other companies, is helping Anthropic expand choice and competition in this important technology."

Anthropic insisted it was "an independent company", while promising to "cooperate with the CMA and provide them with a comprehensive understanding of Amazon's investment and our commercial collaboration".

French economy to get Olympics boost — central bank

By - Aug 10,2024 - Last updated at Aug 10,2024

This photograph taken from the north of Paris shows the Basilica of Sacre Coeur seen in distance, between buildings, on Friday (AFP photo)

PARIS — The French central bank said recently that the nation's economy should get a considerable bump from the Olympic and Paralympic Games.

After having expanded by 0.3 per cent in the second quarter, the Banque de France said it expects the French economy to grow by nearly 0.5 per cent in July-September quarter.

The Olympic Games officially opened in late July and the Paralympic Games finish in September.

The central bank put up to 0.25 percentage points of that growth down to the impact of the Games.

Its forecast is broadly in line with that of France's statistics agency INSEE, which expects a 0.3 per cent point increase in third quarter growth due to the Games, taking overall growth in the quarter to 0.5 per cent.

There was considerable concern ahead of the world's largest sporting event that it may in fact be a drag on the French economy as many tourists who would normally visit Paris were staying away.

Hotels and airlines like Air France said they had seen a drop in bookings.

The Banque de France said there was still considerable uncertainty about its forecast, with the positive effect from the Games confronting a negative effect from the uncertain political situation after no clear winner emerged from parliamentary elections in June and July.

In any case the economic boost from the Games will be fleeting.

It will "mostly disappear in the fourth quarter," the central bank's chief economist, Olivier Garnier, told journalists.

China's top chip maker reports Q2 plunge in profits

By - Aug 08,2024 - Last updated at Aug 08,2024

This photo shows a general view of the SMIC (Semiconductor Manufacturing International Corporation) facilities at Pudong district in Shanghai on March 15 (AFP photo)

BEIJING — Leading Chinese chip maker SMIC announced Thursday a sharp year-on-year drop in profits during the second quarter.

The United States has in recent years taken steps to cut off Chinese firms from accessing its technology and has tightened restrictions on semiconductor exports to the world's second-largest economy.

Semiconductor Manufacturing International Corporation (SMIC), which is listed in Hong Kong and its home city Shanghai, has been a primary target of these measures.

SMIC said on Thursday in a statement to the Hong Kong Stock Exchange that its second-quarter profit attributable to owners stood at $164.6 million, dropping 59.1 per cent compared to the same period in 2023.

Revenue surged to $1.90 billion, up 21.8 per cent year-on-year and improving from the $1.75 billion recorded in the first quarter.

The firm said it expected revenue growth to continue in the third quarter, increasing by 13 to 15 per cent from the second quarter.

SoftBank announces major share buyback, narrows losses

By - Aug 07,2024 - Last updated at Aug 07,2024

TOKYO — Japanese investment giant SoftBank reported narrower first-quarter losses on Wednesday and announced a major share buyback to reassure investors and help finance a pivot into artificial intelligence.

Hit by weakness in its Vision Fund investment vehicles and a weak yen, SoftBank posted a net loss of 174.3 billion yen ($1.2 billion) in April-June, a big improvement on the 477.6 billion yen loss seen a year earlier.

Its announcement of a buyback worth up to 500 billion yen followed pressure from activist investor Elliott Investment Management, Bloomberg News reported.

SoftBank, which was founded by the charismatic Masayoshi Son, made its name through spectacularly successful bets on tech giant Alibaba and Internet pioneer Yahoo.

But other investments have also catastrophically failed, most notably in office-sharing firm WeWork.

Son, 66, now wants to pivot towards investments in artificial intelligence firms, with its coffers boosted by proceeds from the initial public offering of chip designer Arm in 2023.

Disney reports streaming profit but theme parks under strain

By - Aug 07,2024 - Last updated at Aug 07,2024

The Disney+ logo is displayed during San Diego Comic-Con International at the San Diego Convention Centre in San Diego, California, on July 24, 2024 (AFP photo)

WASHINGTON — Disney reported on Wednesday better revenues than anticipated in the most recent quarter, atop a first profit in its streaming business, but its theme parks are coming under pressure.

The mixed picture drove its sharesdown 2.1 per cent in morning trading.

The company saw revenues of $23.2 billion, beating projections of $23.1 billion according to analysts polled by FactSet, while overall profits reached $2.6 billion.

"This was a strong quarter for Disney, driven by excellent results in our Entertainment segment both at the box office and in DTC [direct-to-consumer]," said Disney chief executive officer Bob Iger in a statement.

He added that this came "as we achieved profitability across our combined streaming businesses for the first time and a quarter ahead of our previous guidance".

Its streaming unit, which includes Disney+, Hulu and ESPN+, reported an operating income of $47 million.

Disney said it is still "on track for the profitability of our combined streaming businesses to improve" in the fourth quarter.

 

'Higher costs' 

 

But the company's theme parks business came under stress in the quarter, with lower operating income domestically in parks and experiences.

Disney was squeezed by "higher costs driven by inflation, increased technology spending and new guest offerings".

It expects that the third-quarter demand slowdown in US businesses — under the experiences segment — could impact the next few quarters.

And operating income in the upcoming fourth quarter could slip too.

Disney said it expects its fourth quarter experiences segment operating income to "decline by mid single digits versus the prior year."

This would partly reflect a reduction in consumer travel at Disneyland Paris due to the Olympics, alongside "softening" demand in China.

"We expect to see a flattish revenue number" in the fourth quarter for the experiences segment, Disney chief financial officer Hugh Johnston told an earnings call.

But he described the situation as a "slowdown that's being more than offset by the entertainment business".

"While investors cheered Disney's progress on the streaming side, the worrisome news about the parks unit sent the stock downward," said Paul Verna of Emarketer in a note.

Third Bridge analyst Jamie Lumley said the weakness "raises alarm bells as guidance indicates the rest of the summer will likely be soft as well, usually the busy season for Disney's parks".

"The recovery of its studio segment and content engine is crucial for Disney," added Lumley.

 

Film boost

 

Disney's financial results were given a boost from "Inside Out 2", which became the highest-grossing animated film of all time.

This drove strength in areas like content sales and licensing, and in Disney+ sign-ups.

The company expects core Disney+ subscribers to "grow modestly" in the upcoming quarter.

Disney's results came a day after it announced streaming price hikes.

Iger told the conference call that the company has "pricing leverage" given its consumption growth and the popularity of Disney's offerings.

"Every time we've taken a price increase, we've had only modest churn," he said.

The company is among media giants shifting towards streaming from more traditional avenues like broadcast.

Competitors like Netflix and Warner Bros Discovery's Max also previously unveiled plans to lift costs.

German chemical giant Bayer posts unexpected loss

By - Aug 06,2024 - Last updated at Aug 06,2024

FRANKFURT, Germany — German chemicals giant Bayer, long weighed down by woes related to its glyphosate-based weedkillers, reported an unexpected second-quarter loss Tuesday driven by a poor performance in its agrochemicals division.

While group sales rose by 3.1 per cent to 11.1 billion euros ($12.1 billion), earnings were down "mainly due to an unfavourable product mix", the group said in a statement.

The loss of 34 million euros puts the German giant back in the red after two profitable quarters.

Analysts surveyed by financial data firm FactSet had forecast a profit of 71 million euros.

Sales in Bayer's agricultural business increased by 1.1 per cent, mainly due to higher sales of glyphosate-based herbicides, especially in North America.

But the division registered a loss of 229 million euros due to what group CEO Bill Anderson described as a "challenging agricultural market environment".

The company has kept its earnings forecasts unchanged for 2024.

Bayer has been dogged in recent years by massive litigation issues linked to the Roundup weedkiller, a problem it inherited in the 2018 takeover of US firm Monsanto.

The group has faced a wave of lawsuits in the United States over claims Roundup, which contains the active ingredient lyphosate, causes cancer. Bayer denies the claim but has spent billions of euros on legal costs.

In the second quarter of 2023, Bayer made a loss of 1.8 billion euros, partly due to declines in its glyphosate business.

Anderson, hired last year to help steer the troubled group in a new direction, is aiming to make savings of two billion euros a year from 2026.

Saudi Aramco Q2 profit dips 3% as output stays low — statement

Giant's net income is $29.07b in Q2

By - Aug 06,2024 - Last updated at Aug 06,2024

This picture shows Aramco tower at the King Abdullah Financial District (KAFD) in Riyadh on April 16, 2023. (AFP photo)

RIYADH — Saudi oil giant Aramco on Tuesday reported net income of $29.07 billion in the second quarter, a slight drop from the same period last year as output remained subdued.

The decrease of 3.4 per cent "mainly reflects the impact of lower crude oil volumes sold and weakening refining margins", the company said in a statement posted to the Saudi stock exchange.

Saudi Arabia, the world's biggest crude exporter, is currently producing roughly nine million barrels per day (bpd), well below its capacity of 12 million bpd.

Production averaged 8.8 million bpd in June, Riyadh-based firm Jadwa Investment said last week.

The relatively low figure reflects cuts dating back to October 2022, when the OPEC+ bloc of oil producers that Riyadh co-leads with Moscow announced it would reduce output by two million bpd to boost prices.

In April 2023, several OPEC+ members announced they would further slash production by more than one million bpd, and in June 2023, Riyadh announced an additional voluntary cut of one million bpd.

"Output will remain at similar levels until at least October", at which point an OPEC+ agreement announced in June 2024 will allow "for gradual monthly increases", Jadwa said.

Aramco is the jewel of the Saudi economy and the main source of revenue for Crown Prince Mohammed bin Salman's Vision 2030 reform agenda, which aims to set the Gulf kingdom up for a prosperous post-oil future.

The government's stake in Aramco, one of the world's biggest companies by market capitalisation, is around 81.5 per cent.

Aramco's initial public offering in 2019, the biggest flotation in history, raised $29.4 billion, and a secondary offering this year of nearly 1.7 billion shares fetched $12.35 billion.

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