1.LLOYD:- Lloyd’s of London faces major claims this year from the conflict in Ukraine, but this will not create solvency difficulties, the commercial insurance market said on Thursday.
Lloyd’s is talking to its market partners to understand their exposure related to the conflict, it said in a statement.
Lloyd’s has around 100 member syndicates which underwrite complex risks such as planes, ships and oil rigs.
The aviation insurance market is seen as particularly exposed to the impact of Russia’s invasion of Ukraine and subsequent sanctions by Western governments.
Global leasing companies are staring at an imminent sanctions deadline to repossess more than 400 jets worth almost $10 billion from Russian airlines, as experts warn legal wrangling between airlines, lessors and insurers could last a decade.
Lloyd’s said business underwritten in Ukraine, Russia and Belarus currently accounted for less than 1% of the market’s total business.
Lloyd’s was hit badly by the COVID-19 pandemic in 2020 but recovered ground last year after raising premium rates and excluding the virus from insurance policies.
It posted a 2021 pre-tax profit of 2.3 billion pounds ($3.04 billion), following a 900 million-pound loss in 2020.
2.AIRBUS : Airbus SE (OTC:EADSY) said on Thursday it expects Indian airlines to order 2,210 jetliners over the next 20 years, making up about 6% of the European manufacturer’s projected global deliveries over that period.
The world’s largest civil planemaker expects 1,770 deliveries of narrow-body planes such as its best-selling A320, which make up the bulk of the Indian market, with the remainder being wide-body planes, Brent McBratney, head of airline marketing for India and South Asia, said at an air show.
Proliferation of low-cost carriers has spurred growth in narrow-body planes in India, while long-haul travel is a largely untapped market, he told reporters. Airbus in November said it expects a market total of 39,020 jetliner deliveries over the next 20 years, fractionally lower than the 39,213 it forecast two years ago.
3.SAMSUNG:- Koomin Bank sold Samsung Electronics (OTC:SSNLF) Co. Ltd. (KS:005930) shares that were worth around $1.1 billion earlier in the day, according to a term sheet that was seen by Reuters.
The term sheet showed that about 19.9 million shares priced at KRW68,800 won per share were put on the block. Kookmin, Goldman Sachs (NYSE:GS), and JPMorgan (NYSE:JPM) acted as bookrunners for the sale.
Samsung Electronics’ South Korean shares rose 0.85% to KRW69,900 ($57.44) by 1:17 AM ET (5:17 AM GMT), after falling 1% to KRW 69,800 won in early Asian trading. The company’s shares recorded a 0.9% fall in the wider market.
Samsung Electronics did not comment on the sale, but analysts said that the move had been widely expected.
The shares also match the amount that Ra-hee Hong, mother of Samsung Electronics Vice Chairman Jay Y. Lee agreed to keep in trust with Kookmin Bank in October 2021, a Samsung Electronics filing showed. The filing also showed that the trust agreement period was due to end by Apr. 25, 2022.
Hong is also the wife of deceased Samsung patriarch Kun-hee Lee. Since the elder Lee’s death in 2020, the family that owns Samsung has used its shares in affiliated companies to pay part of more than $10 billion in inheritance tax, people with direct knowledge of the matter previously told Reuters.
4.BLACK ROCK:BlackRock Inc’s chief executive, Larry Fink, said on Thursday that the Russia-Ukraine war could end up accelerating digital currencies as a tool to settle international transactions, as the conflict upends the globalization drive of the last three decades.
In a letter to the shareholders of the world’s largest asset manager, Fink said the war will push countries to reassess currency dependencies, and that BlackRock was studying digital currencies and stablecoins due to increased client interest.
“A global digital payment system, thoughtfully designed, can enhance the settlement of international transactions while reducing the risk of money laundering and corruption”, he said.
That appeared to strike a different tone from May of last year, when Fink raised some concerns around volatility and said it was too early to determine whether cryptocurrencies were just a speculative trading tool.
In the letter on Thursday, the chairman and CEO of the $10 trillion asset manager said the Russia-Ukraine crisis had put an end to the globalization forces at work over the past 30 years.
Access to global capital markets was a “privilege, not a right,” he said, adding BlackRock had suspended the purchase of any Russian securities in its active index portfolios following Moscow’s invasion of Ukraine.
“Over the past few weeks, I’ve spoken to countless stakeholders, including our clients and employees, who are all looking to understand what could be done to prevent capital from being deployed to Russia. We believe this is the definition of our fiduciary duty,” Fink said.
BlackRock Inc’s total client exposure to Russia had declined to less than $1 billion earlier this month from $18 billion before Moscow’s invasion of Ukraine led to Western sanctions and the closure of the Russian stock market, according to figures supplied by the asset manager this month.
5.TOSHIBA:-Japan’s troubled Toshiba Corp goes into a critical shareholder vote later on Thursday facing very long odds for winning support for its plan to spin-off its devices business.
Its top three shareholders – Effissimo Capital Management, 3D Investment Partners and Farallon Capital Management – all activist shareholders with which Toshiba management has had a contentious history – oppose the plan as do proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis.
Also on the table is a proposal from Singapore-based 3D calling for Toshiba to solicit buyout offers from private equity – a motion that has the support of Effissimo, Farallon as well as Glass Lewis but, perhaps significantly, not ISS.
Each proposal needs 50% of the vote to pass.
Whatever the outcome, Thursday’s vote represents another major battle in a four-year scandal-filled war being waged between the 146-year-old conglomerate and activist shareholders over the direction of the company.
Toshiba management argues a spin-off is the best way to maximise shareholder value. Sources familiar with the matter have also said Toshiba hopes the plan would lift its share price to the point where activist shareholders would be enticed to leave.
Toshiba has rejected calls to seek a private equity buyout, arguing that potential offers suggested so far were insufficiently compelling and would raise concerns about the impact on its business and staff retention.
But opposition to Toshiba’s plans has been widespread as well as vocal. Together, Effissimo, 3D and Farallon own around a quarter of Toshiba. All foreign activist funds combined are estimated to hold about 30% while more broadly overseas investors own 50% of the industrial conglomerate.