Latest News
-
Tigray officials warn that Ethiopia and Eritrea are on the path to war
Officials in an Ethiopian region at a centre of tensions warned that Ethiopia and Eritrea, long-time enemies, could be heading towards war. This would risk another humanitarian catastrophe in the Horn of Africa. Analysts said that direct clashes between the two largest African armies could be the death blow to a historic rapprochement, for which Ethiopian Prime Minister Abiy Abiy Ahmed was awarded the Nobel Peace Prize for in 2019. It may also attract other regional powers. This would likely cause another crisis in the region, where cuts in aid have made it difficult to help millions of people affected by conflicts in Sudan and Ethiopia. The Africa Report, an African-focused magazine, published a Monday article by General Tsadkan Ghretensae. He is a vice-president in the interim government in Ethiopia's Tigray Region. The civil war between Ethiopia's central Government and the Tigray Liberation Front (TPLF), which will take place in Tigray from 2020-2022, has killed thousands. Fears of a renewed conflict are related to the TPLF splitting last year, with one faction administering Tigray under the blessings of Ethiopia's Federal Government and another opposing it. The dissident group, who Tsadkan claimed was seeking an alliance with Eritrea on Tuesday, took control of Adigrat, a northern town. Getachew Reda is the interim head of Tigray. He has asked for the support of the government against the dissidents who deny any ties with Eritrea. Getachew said at a press conference on Monday that there was a clear animosity between Ethiopia and Eritrea. "What worries me is the possibility that the Tigray may become once again victims of a conflict they do not believe in." "DRY TINDER WAITING TO MATCH" The federal government of Ethiopia has not made any comments on the tensions. Eritrea’s Information Minister dismissed Tsadkan’s warnings as “war-mongering schizophrenia”. Human Rights Concern-Eritrea, a UK-based organisation, claims that Eritrea has ordered a national military mobilization since mid-February. Two diplomatic sources, and two Tigrayan official, who asked not to be identified due to the sensitive nature of the situation, said that Ethiopia sent troops to the Eritrean frontier this month. Could not independently verify this development. The Eritrean government and Ethiopian government spokespersons did not respond when asked for comments. Former U.S. and EU ambassadors in the region Payton Knopf, and Alexander Rondos say that the prospect of a new conflict is real. In an article published by the U.S. magazine Foreign Policy, they said: "The deterioration in the political and security conditions in Tigray are dry tinder just waiting for a spark." The relationship between Ethiopia and Eritrea has been fraught for a long time. After a 30-year struggle for independence, Eritrea separated from Ethiopia in September 1993. After a 30-year struggle for independence, the neighbours fought a border war from 1998 to 2000. The two countries remained at war informally until 2018, when Abiy, the Eritrean president Isaias Afwerki and other leaders agreed to normalise relations. Eritrean forces even supported Ethiopian federal troops against TPLF rebels in the Tigray Civil War. The relationship was once again strained when Eritrea was excluded from the subsequent peace talks. Eritrean officials are angry at Abiy's repeated declarations since 2023, that Ethiopia, a landlocked country, has the right to access the sea. Some analysts interpret these comments as a threat of military action, against Eritrea which is located on Red Sea. In October last year, Eritrea signed a security agreement with Egypt and Somalia, which was widely viewed as an attempt to counter Ethiopia's expansionist intentions.
-
India will deliver US summons for alleged bribery to Adani
According to a letter obtained by The Hindu, the Indian government asked a court in its jurisdiction to serve a summons from the U.S. Securities and Exchange Commission on billionaire Gautam. Adani for alleged securities fraud and $265 million bribery. Indian lawyers stated that the summons was issued in accordance with the Hague Service Convention, which does not permit the service of legal documents directly on defendants in India. Adani or his legal representative would be required to appear before the court in the United States. Adani Group denied the allegations and called them "baseless". They also promised to pursue "all legal remedies possible". The letter dated 25 February shows that the Indian federal ministry of justice has asked the district court in Ahmedabad (Gujarat), Adani's state of residence, to serve the summons on him. The summons appears to be for an appearance at a New York court. "If service is done through the Indian court the respondents will be required to appear", said Arshdeep Khurana, an Indian criminal lawyer. Adani and India’s law ministry didn't immediately respond to comments. Another lawyer stated that the summons did not indicate an extradition risk to the businessman who is in charge of a vast conglomerate, ranging from airport construction and media. "Extradition procedures only enter the picture if a U.S. Court issues warrants of Arrest," said Malak Bhatt. Reports on February 18 stated that the SEC is seeking assistance from India in serving its complaint against Gautam Adani and Sagar Adani. Could not determine whether the summons issued against Adani's niece has been processed. Last month, India's Narendra Modi said that he had not discussed the Adani case during his Washington visit with U.S. president Donald Trump. (Reporting and editing by Sarita Chaturvedi and Arpan Chaganti; Kirby Donovan, Kirby Donovan).
-
As UK litigation closes, victims demand justice for deadly Brazilian dam collapse
On Thursday, as the London lawsuit that they filed to seek justice for their children came to a close, mothers of children killed in Brazil's worst environmental catastrophe - 2015 Mariana Dam collapse - demanded their loved ones be given justice. The Mariana Dam collapsed in southeast Brazil, killing 19 people and releasing a toxic sludge that flooded forests, polluted the Doce River, and left thousands of people homeless. The dam was owned Samarco. It is a joint-venture between Vale, Anglo-Australian BHP and Vale, the largest miner in the world by market value. Gelvana Silva (37), said in front of London's High Court: "It is the day I lost my son." She lost her son Thiago, aged seven years old, in the flood. In a suit worth up to 46.63 billion pounds, BHP is being sued by more than 600,000 Brazilians and local governments, as well as around 2,000 companies. The case, which is one of the biggest in English legal history began in October. It ends with Thursday's closing submissions. Tom Goodhead of Pogust Goodhead who represents the claimants expects to receive a decision by summer. Pamela Fernandes lost her five-year old daughter Manu. "The memories of Manu will always be with me... It's very hard." Fernandes wore the same T-shirt as Silva, which featured a picture of her child. She said: "I seek justice for my peace and that of my daughter." 'ACCOUNTABILITY' BHP claims that the London lawsuit is a duplicate of legal proceedings, reparation and repair programs in Brazil and it should be dismissed. BHP also claims that nearly $8 billion in compensation has been paid out to the affected parties through the Renova Foundation. Around $1.7 billion of this amount went to claimants in the English case. BHP claims it didn't own or operate the tailings dam that held mining waste. BHP said that a Brazilian subsidiary owned 50% of Samarco which was operated independently. The miner said that it did not know the stability of the dam was compromised prior to its collapse. Goodhead, however, has stated that the Brazilian government did not sign a deal for compensation with BHP and Vale. Goodhead stated on Thursday that the trial is about accountability. Silva said: "If the company was convicted, that would be our biggest victory... It would have been well worth the ten-year wait."
-
Trump threatens a 200% increase in wine tariffs if the EU doesn't remove whiskey tariff
Donald Trump, the U.S. president, said that he will impose a 200% tariff on all wine and other alcoholic beverages coming from the European Union as long as the bloc does not remove the tariff it has placed on whiskey. The European Commission announced on Wednesday it would impose counter-tariffs on U.S. products worth 26 billion euros (28 billion dollars) from next month. This will intensify a global trading war as a response to U.S. tariffs that cover steel and aluminum. The EU executive, however, said that it was open to negotiation and considered that higher tariffs were not in anyone's best interest. Trump increased the stakes in a Thursday social media post. Trump posted on Truth Social that "The European Union has just imposed a 50% tariff on whisky, which is a terrible and unfair taxation and tariffing authority, formed solely to take advantage of the United States." If this tariff is not removed immediately, then the U.S. soon will place a 200% tariff on all WINE, CHAMPAGNES & ALCOHOLIC products coming out of France and other E.U. REPRESENTED COUNTRIES. "This will be great news for the Wine and Champagne industries in the U.S." U.S. stocks futures fell and European spirits maker shares also dropped. The European Commission announced that it would end the current suspension of its tariffs against U.S. goods on April 1, and that they will be fully implemented by April 13. Reporting by Doina chiacu in Washington, and Phil Blenkinsop from Brussels. Editing by Louise Heavens and Bernadette Baum. Mark Porter.
-
Donna Anderson, T. Rowe Price’s director of governance, will retire at the end of the year
Donna Anderson, head of corporate governance at T. Rowe Price, and a strong voice in the investment industry on a variety of hot-button issues, plans to retire by the end of the year. T. Rowe Price is one of the most powerful investment firms in the world, with assets worth $1.6 trillion. Three sources with knowledge of the situation confirmed that Anderson intends to leave the company. In an email, Eric Veiel told us that Donna Anderson informed T. Rowe Price of her intention to retire at the end this year. We have started to transition her work to her successor. Anderson, 56 years old, didn't respond to our request for comment. T. Rowe Price has not yet named a successor for Anderson, who joined the Baltimore-headquartered asset manager in 2007. Anderson led T. Rowe Price’s interaction with hundreds of companies for nearly two decades as issues such as chief executive pay and the composition of corporate boards and policies on environmental, social, and governance policies became more important. Veiel wrote: "She is a highly respected leader not only within corporate governance circles and asset management company boardrooms, but also inside the walls of T. Rowe Price, where she represents the interests of the shareholders of the company." "She will be greatly missed." Anderson, the executive at T. Rowe Price who helped to make the final decision on the way the investment firm voted in the spring corporate elections, was often the one who made the call. Anderson was a key player in the tight-knit governance community, where he played a crucial role in defining voting policies. He then made them public at conferences like this week's Council of Institutional Investors in Washington. Jessica Wirth Strine is the managing partner and chief operating officer of consulting firm Jasper Street Partners. She said: "Donna Anderson was an important force in stewardship and she has always called it as it is." "She is not a follower." T. Rowe Price invests actively in clients' retirement and college saving portfolios. However, the company is not an activist that forces companies to act on issues of social or public concern. During Anderson's career, she often competed with prominent investors, including billionaire activist Nelson Peltz, and corporate leaders like Exxon Mobil’s head Darren Woods. But, despite being a luminary of her own, investors, lawyers and bankers said that Anderson never sought to be in the spotlight. In the governance sector, there have been some other important personnel changes this year. In January, Cristiano Güerra, the former head of Institutional Shareholder Services' special situations research, joined Strategic Governance Advisors, a consulting firm. He was responsible for determining the outcomes of some of America's most heated board battles. (Reporting and editing by Svea Herbst Bayliss.
-
IIR: Gasoline unit of Nigeria's Dangote Oil Refinery will undergo maintenance in June
According to IIR, Nigeria's Dangote Oil Refinery will close its 204,000 barrels of gasoline per day unit for 30 days maintenance. The shutdown is tentatively scheduled to begin on June 1. The Dangote refinery didn't immediately respond to an inquiry for comment. In January 2024, the 650,000 bpd Nigerian billionaire Aliko Dagote's refinery in Lagos started processing crude oil into products such as gasoil and naphtha, and began producing gasoline in September. A refinery official said that it was only operating at 85% of its capacity as early as February. NNPC, the Nigerian state oil company, said that Dangote's refinery had begun discussions earlier this month with NNPC to extend its crude oil supply contract. Before the deal, Dangote reported difficulty in securing crude supply and received U.S. crude grade including WTI Middle. According to shipping trade analysis firm Kpler, the refinery exports refined products such as fuel oil, jet-fuel, naphtha, and gasoil to other African and Asian countries since March 2024. Kpler data shows that Nigeria's imports of gasoline have fallen since Dangote started producing road fuel in September. The number has dropped to a record low of 112,000 barrels per day (bpd) in February from 372,000 in February 2024. Enes tunagur is the reporter. (Editing by Bernadette B. Baum and Mark Potter.
-
Why is a Peruvian farm taking RWE in Germany to court for climate change?
A Peruvian farm gets his day in court as part of a landmark climate lawsuit against German energy giant RWE. The case could change the way that companies' emissions effects are litigated. On Monday, the Higher Regional Court of Hamm is scheduled to begin hearings between RWE and farmer Saul Luciano Lliuya. Lliuya has filed a lawsuit against RWE, seeking 21,000 euros. He claims that the company's emissions contributed to the melting andean glaciers which caused a lake to rise dangerously above his home. What is the nature of the case? What is the legal basis? What does this mean for future climate litigation? What is the case about? Lliuya filed a lawsuit in 2015 with the support of the activist group Germanwatch. He claimed that RWE's greenhouse gases had contributed to the melting an Andean Glacier, which raised the water levels at Laguna Pacacocha. This created a flood risk for his home, located near the town of Huaraz. Lliuya wants RWE to contribute 21,000 euros towards the estimated cost of $3.5 million for a flood-defence project. He claims that the company is responsible for nearly 0.5% global greenhouse gas emissions caused by man since the Industrial Revolution, and therefore should be paying the equivalent of the flood protection costs. Why did it take 10 years to have a hearing? The first court to hear the case was in Essen, Germany, where RWE has its headquarters. The court rejected the claims saying that there are countless carbon dioxide emitters worldwide and any potential flood risks as a result from the melting glacial ice cannot be attributed solely to RWE. Lliuya filed an appeal against the Hamm higher regional court's decision in 2017. The court admitted the case and stated that it would be seeking evidence. The COVID-19 pandemic delayed a visit by experts appointed by the court to study flood risk around the glacier until 2022. A 200-page expert report was made available over a year after the COVID-19 pandemic. The two parties had to review it. What is the legal basis of the case? The case is based upon section 1004 (Civil Law Code) which states that the owner can require the disturber remove the interference if it is done to their property. If the court finds that the flood threat claimed by the plaintiff was real, it will then determine in the second phase the extent to which RWE's emissions of CO2 have contributed to a risk of a flood from a glacial outburst lake. The next hearing will be a preliminary step that will include the evaluation of the experts appointed by the court. Why has the case attracted so much interest? If the court holds RWE legally responsible for climate change and finds that glacier melt poses a flood threat, this would be a precedent to hold companies accountable for climate changes. The amount in dispute is less than 20,000 Euros, but it's clear that the potential to set precedents in this case is huge," says the website of Freshfields Bruckhaus Deringer, the law firm which represents RWE. Roda Verheyen said that even if the court did not find there to be a flood threat, its decision would serve as a basis for future cases. What does science say about this? Scientists at the University of Washington and Oxford University proved in 2021 that global warming caused the melting of the glacier of the Peruvian Andes, increasing flooding risks to nearby residents. Friederike Otto is a climate scientist with the Grantham Institute for Climate Change and the Environment. She said: "There are plenty of proofs that the science applies in the Andes. We have no evidence to the contra." What does RWE say about the case? RWE claims that Lliuya’s complaint is unfounded. It argues that a single emitter can't be held accountable for global warming. It has made a transition from coal to gas, but it still runs 7 lignite power plants or brown coal plants. These plants account for 26,7% of the company's total electricity generation. In 2020, there were 20 plants. It also operates 21 gas-fired power plants in Germany, the Netherlands and the UK. RWE said that its CO2 emissions will be reduced by almost half to 60,6 million tons from 118 millions tons in 2018. Further reductions are expected. The company aims to phase out lignite completely by 2030. (Reporting and editing by Adam Jourdan, Christina Fincher and Riham Alkousaa)
-
Bankers: Jio Finance, India's Jio Finance, taps the debt market before bond sales with its debut commercial paper issue
Three merchant bankers confirmed on Thursday that India's Jio Finance (a unit wholly owned by Jio Financial Services) has tapped into the debt market through its first commercial paper (CP), ahead of its debut Bond sale later this month. Bankers with direct knowledge of the situation said that the non-banking financial company issued three-month CPs for a 7.80% yield and accepted bids totaling 10 billion rupees (114.95 millions). They all requested anonymity because they were not authorized to speak with the media. One of the bankers stated that "as expected, Jio Finance started its funding by issuing CP bonds of shorter duration. We expect its bond issuance in the next fifteen days before the end of the financial year, which will be March 31st." Bankers estimate that Jio Finance can raise 30 billion rupees by selling bonds for five years. The bankers have also offered a 7.75% coupon. One of them said, "The company will talk to investors and when it has enough commitments it will launch the issue." Jio Finance didn't immediately respond to an email for a comment. Crisil and Care have rated the bonds of the firm as 'AAA,' while the CPs were rated at 'A1+. The ratings for both instruments are the highest possible. In a note on ratings, Crisil said that the group's capital structure is healthy, its liquidity is robust, including its 6.1% stake in RIL (Reliance Industries), and its management team has experience. Care also said that the ratings take into consideration the company's capital buffers, which allow it to expand operations, as well as its strong liquidity framework and management's expertise.
Brazil's CSN reports Q4 loss, but core earnings exceed forecasts
Brazilian steelmaker CSN posted a net loss for the fourth quarter due to "still high financial expenses," however, core earnings and revenue exceeded market expectations.
Why it's important
CSN is one the largest Brazilian steelmakers and miner.
By the Numbers
CSN reported a loss of $ 14.66 million in the quarter October-December, according to a filing with the Securities Commission. This is a significant drop from the $851 million profit it had posted a year ago.
According to an LSEG survey, the company reported adjusted earnings before taxes, interest, depreciation, and amortization of 3.33 billion reais. This is down 8% from last year, but still beats analysts' expectations, which were 2.87 billion reais.
Analysts had predicted 11.8 billion reais. Sales of steel increased 10.4% compared to last year, while iron ore sales fell 3.7%.
KEY QUOTES
CSN reported that the steelmaking operation had taken another step towards normalizing operations and regaining profitability. It added that it achieved higher volumes and prices due to the domestic market despite the weaker seasonality.
CSN reported that the mining industry's volumes were affected by the beginning of the rainy seasons, but they "maintained a steady production pace and managed... to benefit from an upward trajectory in iron ore prices."
MARKET COMMENTS
JPMorgan analysts said that CSN Mineracao and CSN, its publicly-traded mining division, both exceeded their expectations for the quarter due to lower costs than expected. They expressed a positive outlook.
JPMorgan stated that "the beat was driven primarily by strong performances in its key business areas, namely steel, mining, and cement." A revision upward of the consensus estimate is expected. ($1 = 5,7989 reais). (Reporting and Editing by Louise Heavens, Andre Romani & Gabriel Araujo)
(source: Reuters)