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Dutch government sources estimate the deal at 20 billion euros ($22 billion) or more, but German industry sources say it may be less. TenneT had a book value of 7.3 billion euros at the end of 2022, on a balance sheet of 38.5 billion euros. TenneT's German grid alone has liabilities of 21.6 billion euros, nearly three times that of the Dutch network. TenneT's 19 billion euros of outstanding bonds, issued when interest rates were lower, are another issue, the people said. Dutch pension fund PGGM, one of TenneT's bondholders, expects such an outcome in the event of a sale.

☆ UK listing shakeup requires double dose of hope
▼ + stars: | 2023-05-03 | by ( Neil Unmack | ) www.reuters.com time to read: +4 min

The Financial Conduct Authority isn’t the only watchdog to water down its listing rules, but it has more reasons than most to up its game. The UK prides itself on being a financial hub, but accounted for just 5% of global IPOs between 2015 and 2020. That’s why the FCA is proposing to replace a fiddly two-tier system of standard and “premium” listing rules with a single class. CONTEXT NEWSThe UK Financial Conduct Authority on May 2 published a series of proposals designed to encourage companies to list in the UK. The new framework would remove many investor protections currently required under the premium listing category.

[1/2] David Hunt President and CEO, PGIM, speaks at the 2023 Milken Institute Global Conference in Beverly Hills, California, U.S., May 1, 2023. As Wall Street money managers, banking executives and pension fund managers gathered at the Milken Institute Global Conference, the main topic over cocktails on Sunday night and in conference rooms the following morning was JPMorgan Chase & Co's (JPM.N) purchase of First Republic Bank. Policymakers, executives and investors at the conference said constrained lending as a result of banking sector regulation could choke off credit to the economy. Nevertheless, betting against bank stocks has been a profitable endeavor this year, which has seen the high-profile failures of Silicon Valley Bank and Signature Bank, in addition to First Republic and a state-engineered rescue of Credit Suisse by the Swiss government. The KBW Regional Banking Index, which fell 2.7% on Monday, is down almost 23.6% year-to-date, while First Republic’s shares are off 97% since January.

☆ Why Warren Buffett Runs Berkshire Hathaway His Way - The New York Times
▼ + stars: | 2023-05-02 | by ( Roger Lowenstein | ) www.nytimes.com time to read: +3 min

Not surprisingly, Mr. Buffett has become a target for progressive institutional investors. (A resolution calling for Mr. Buffett to step down as board chairman, though not as C.E.O., fared the worst.) CalPERS, which manages retirement funds in California, demands that Berkshire publish an annual “assessment” on how it manages climate risks. (This is a good place to note: I’m not only a Warren Buffett biographer, I’m also a long-term Berkshire stockholder.) Mr. Buffett was the son of a conservative Republican who served four terms in Congress.

☆ Michael Milken says recent crisis is the same mistake banks have been making for decades
▼ + stars: | 2023-05-02 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

Michael Milken, Chairman of the Milken Institute, speaks during the Milken Institute Global Conference in Beverly Hills, California, on May 2, 2022. "You shouldn't have borrowed short and lent long... Finance 101," Milken said on CNBC's "Last Call." "Again here, the banks have enough credit, they had enough equity, they had enough ability to absorb credit losses that are coming. The founder of the Milken Institute believes that there will be a decrease in the percentage of loans that are owned by the banking system in the aftermath of the crisis. "People are so focused on credit risk, etc., but one of the great risks is interest rate risk."

HONG KONG, May 2 (Reuters Breakingviews) - Money flowing into the People's Republic is getting uncomfortably hot. Yet recent reversals in New York, Hong Kong and Shanghai suggest that is driven by fickle short-term funds – exactly what Beijing doesn’t want. Reuters Graphics Reuters GraphicsFollow @mak_robyn on TwitterCONTEXT NEWSChinese spirit maker ZJLD shares closed down 18% lower than their initial public offering price on their trading debut April 27. The KKR-backed company raised $676 million in what was the biggest offering in Hong Kong since October 2022. Separately, the Ontario Teachers' Pension Plan, Canada's third largest pension fund, closed down its China equity investment team based in Hong Kong, Reuters reported on April 25, citing sources.

[1/2] Florida Governor Ron DeSantis walks outside the Treasury during his visit in London, Britain April 28, 2023. The bill is one of the furthest-reaching efforts yet by U.S. Republicans against sustainable investing efforts, and a clear political message from DeSantis, a likely presidential candidate. We do not want them engaged on these ideological joyrides," said DeSantis just before he signed the bill at a webcast event. Analysts said the legislation goes further than other state anti-ESG bills, even as business groups worry the efforts pose financial risks. There are climate and weather risks that are highly relevant, especially in a state like Florida, and would be captured in our assessment of credit risk," Torgerson said.

☆ Oil AGMs presage awkward investor decoupling
▼ + stars: | 2023-04-28 | by ( Yawen Chen | ) www.reuters.com time to read: +3 min

Chair Helge Lund defended a sudden reversal in February to now cut less oil and gas production by 2030. Big Oil had more than doubled its profits in 2022 as energy prices spiked after Western sanctions on Russian energy. Pension investors like the Universities Superannuation Scheme, for example, are strengthening their climate investment policies and targeting board members to drive change. The traditional oil investor base may soon start to question why companies aren’t doing much more in oil and gas, if that’s what drives profitability and market performance. The oil world’s own awkward decoupling is happening fast.

☆ Norway's sovereign wealth fund chief seeks state regulation of AI, Financial Times reports
▼ + stars: | 2023-04-28 | by ( ) www.reuters.com time to read: +1 min

April 28 (Reuters) - Norway sovereign wealth fund's CEO Nicolai Tangen has called upon governments to speed up the regulation of artificial intelligence (AI), the Financial Times reported on Friday. The $1.4-trillion wealth fund, the world's largest, is set to reveal guidelines in August on how the companies it invests in should use AI ethically, Tangen told the newspaper in an interview. The Government Pension Fund Global operates under ethical guidelines set by parliament and excludes investments in companies that it says does not respect the guidelines. Norges Bank, the country's central bank, holds stakes in more than 9,200 companies globally through the wealth fund. Reporting by Urvi Dugar in Bengaluru; Editing by Rashmi AichOur Standards: The Thomson Reuters Trust Principles.

That means portfolio managers are having to factor a stronger yen into global stock selection in way they have not for years, with some even anticipating mergers and acquisitions as the Japanese market revs up. "The trigger for the revaluation of the Japanese markets is higher rates and then a stronger yen. Japan's insurers and pension funds alone hold $1.84 trillion in foreign assets, Deutsche Bank calculates, greater than the size of South Korea's economy. "Policy normalisation could turn back the clock for Japanese investors," Deutsche Bank strategists said in a note. Carmignac, like many global investors, has maintained an underweight position towards Japanese stocks but, Leroux said, it was looking to raise this to neutral.

☆ Oil major BP braces itself for shareholder revolt after scaling back its climate targets
▼ + stars: | 2023-04-27 | by ( Sam Meredith | ) www.cnbc.com time to read: +2 min

Dutch group Follow This, a small activist investor and campaign group with stakes in several Big Oil companies, has tabled a resolution at BP's shareholder meeting. It calls on the energy giant to align its climate targets with the landmark Paris climate accord and commit to absolute carbon emissions cuts by 2030. Those emissions cuts, Follow This says, should include emissions generated by customers' use of their oil and gas, known as Scope 3 emissions. Follow This says it expects BP's annual general meeting to be a "contentious" one, warning investors will be "rightfully concerned" about BP dialing back its climate strategy amid an ever-worsening climate crisis. Proxy advisors ISS and Glass Lewis have recommended that shareholders of BP vote against the resolution tabled by Follow This.

☆ Analysis: American living standards are on the line in the debt ceiling drama
▼ + stars: | 2023-04-27 | by ( Christine Romans | ) edition.cnn.com time to read: +6 min

New York CNN —Inside the Beltway, jockeying over raising the debt ceiling has become a partisan ritual to gain political points. But marching toward a debt ceiling default puts American living standards on the line. For most of that time, the debt ceiling was raised with little fuss, until 2011 brought the debt ceiling into a new dangerous realm of political brinksmanship. Deciding later not to pay the bills by not raising the debt ceiling is not sound fiscal policy. Roger Ferguson, economist and former vice chair of the Fed, said the debt ceiling is out of date.

☆ Schroders' assets under management fall on year; small uptick from prior quarter
▼ + stars: | 2023-04-27 | by ( ) www.reuters.com time to read: +2 min

At the end of the first quarter, Schroders' assets under management rose 1.2% to 746.3 billion, although still 0.8% lower than the corresponding period a year ago, when the Russia-Ukraine conflict had just begun. Peer St. James's Place (SJP.L) said assets under management rose 3.5% by the end of March quarter, adding that it expected a more supportive environment for new business in 2023. Still, SJP's net inflows were down nearly 9% at 2 billion pounds during the first quarter, missing company-compiled analysts' expectations of 2.2 billion. Separately, Schroders named PricewaterhouseCoopers' current global market leader, Richard Oldfield, as its new CFO. Schroders shares were down 1.4%at 474.5 pence by 0750 GMT, compared to a largely flat benchmark index (.FTSE).

☆ Teck Resources profit misses estimates as Glencore circles
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +1 min

Teck reported an adjusted profit of C$1.81 per share for the three months ended March 31, compared with the average analyst estimate of C$1.82, according to Refinitiv IBES data. read moreSome Teck shareholders have already cast their votes on the miner's proposal to split its coal and metals businesses. Glencore has said that there is no deal if shareholders vote in favor of Teck's split. Teck's quarterly gross profit for its copper business unit fell 42.1% due to a drop in sales volumes and average realized copper prices. Teck reported a revenue decline of 18% to C$3,785 million.

☆ US subsidies make UK financial reform urgent, business warns
▼ + stars: | 2023-04-26 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, April 26 (Reuters) - U.S. clean technology subsidies are sucking capital from Europe, making it more urgent to improve London as a global financial centre, business bosses told UK lawmakers on Wednesday. It's the biggest shift in competitive dynamic in my career," GlaxoSmithKline chair Jonathan Symonds told a Treasury Select Committee hearing on why UK companies are listing in New York instead. "The effect of what's happening through the Inflation Reduction Act across the whole of Europe is like a dirty great hoover on full suction mode," said Jonathan Hill, who authored a government-backed report on reforming UK listing rules. Britain has already eased listing rules in line with Hill's recommendations, and plans further changes. UK listed companies disclose whether they follow governance best practice or explain why they do not, but critics say flexibility has been lost.

☆ Indigenous Australians file human rights complaint with pension funds over Santos gas projects
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +2 min

SYDNEY, April 26 (Reuters) - A group of Indigenous Australians on Wednesday filed a human rights complaint against 20 large Australian pension funds for investing in Santos Ltd's (STO.AX) two gas projects, putting pressure on the funds over their fossil fuel investment plans. Three traditional landowners, in the complaint filed directly with the superannuation funds, alleged the funds had an "obligation to prevent adverse human rights impacts of companies in which they are invested". Commonwealth Super Corp, AustralianSuper, Australian Retirement Trust, Aware Super and AMP - the five largest pension funds - did not immediately respond to requests seeking comment. An appeal by Santos to resume drilling on its A$3.6 billion Barossa gas project off northern Australia was rejected by the federal court in December after indigenous groups raised objections. Santos then said it would apply for fresh approvals for its biggest project in line with the court's order.

☆ As possible Social Security benefits cut looms, GOP senator says lawmakers are working on a 'big idea' fix
▼ + stars: | 2023-04-25 | by ( Lorie Konish | ) www.cnbc.com time to read: +4 min

Nicholas Kamm | AFP | Getty ImagesSocial Security's trust funds have a new projected depletion date that is about a decade away. The idea calls for creating an investment fund separate from Social Security and allowing the investment to earn returns over a period of 70 years, Cassidy said. It would target the Social Security trust funds' biggest weakness, which is that it has "the absolute worst investment strategy you could have right now," Cassidy said. 'Big idea' inspired by private pensionsThe idea for investing Social Security's funds in the market is inspired by private pension funds, which already buy securities outside of Treasurys. Possible changes to fix Social Security generally include tax increases, benefit cuts or a combination of both.

☆ Elon Musk's super-app ambitions might be a fool's errand
▼ + stars: | 2023-04-25 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Whether it's charging, or not charging, for blue check marks or blowing up mega-rockets, Elon Musk's businesses get plenty of scrutiny. Insider's Paige Hagy looked into Musk's plans around turning Twitter into a super app and spoke to industry experts about the strategy. A super app, or everything app, as Musk calls it, encompasses everything (no duh!) In short, if it's something you can do on your phone, you can do it on a super app. Click here to read more about Elon Musk's plans for creating an everything app.

☆ Banks aren't the only ones that hold risky commercial-real-estate debt. Pension funds are about to feel the pain, too.
▼ + stars: | 2023-04-24 | by ( Al Yoon | ) www.businessinsider.com time to read: +4 min

Pension funds, REITs, and insurers hold more than $1.2 trillion in commercial-real-estate debt. CalSTRS, a California pension fund, told the FT it will be writing down its real-estate portfolio. Among them are the large pension funds, REITs, and insurance companies, together accounting for more than $1.2 trillion — or 22% — of the $5.62 trillion in total commercial-real-estate debt outstanding, according to BofA Global Research. Some pension funds were already planning to reduce their exposures to commercial real estate even before the recent bank failures magnified the risks. In September, fund managers at Artemis Real Estate Partners and PGIM Real Estate said at a Bisnow conference that their investors indicated they'd be reducing allocations to real estate, just because the assets had been outperforming others.

☆ State leaders targeting climate investing have quiet stakes in the fossil fuel industry
▼ + stars: | 2023-04-24 | by ( Brian Schwartz | ) www.cnbc.com time to read: +12 min

Fitzpatrick is among a group of powerful Republican state leaders who have waged similar fights against environmentally conscious investing as they held personal investments in, or saw political support from, the fossil fuel industry. Some of the state officials have received campaign donations from fossil fuel companies or their executives. "He has never 'had private briefings tied back to the fossil fuel industry' nor does he personally direct or execute trades himself. Hegar co-signed an open letter in 2021 with other state financial officers that was addressed to the U.S. banking industry and defended the fossil fuel industry. He also co-signed the 2022 letter to Biden from a slate of other state financial officers defending the fossil fuel industry.

☆ Brits warned they are not saving enough for retirement and face a 'risky' future
▼ + stars: | 2023-04-24 | by ( Hannah Ward-Glenton | ) www.cnbc.com time to read: +4 min

Richard Baker / Contributor / Getty ImagesLONDON — Workers in the U.K face a "risky" future when it comes to their pensions, according to a report released by think tank the Institute for Fiscal Studies. Almost 90% of Brits aren't putting an appropriate amount of money into their pension pots — generally considered to be around 15% of earnings, according to the IFS report. Including self-employed savers within that framework would also boost their pension pots and reduce their dependence on the state pension later in life, Savova added. Most people in the U.K. are automatically entitled to a state pension, which is currently £203.85 ($253) per week. "Increasing the State Pension Age will only escalate pensioner poverty which falls disproportionately on those who have lower incomes and retire early due to ill-health," Peaple told CNBC via email.

☆ Factbox: Industry targets of U.S. Republicans' anti-ESG efforts
▼ + stars: | 2023-04-22 | by ( Ross Kerber | ) www.reuters.com time to read: +3 min

Here is a look at major efforts and, in some cases, their impact on specific industries. In addition, legislation pending in states, including Texas and Florida, aims to limit the consideration of ESG factors by pension funds, which could cut off fund firms from public contracts. Top fund firms such as BlackRock Inc (BLK.N) and State Street Corp (STT.N) - both NZAM members - have said their ESG efforts only support clients concerns, for instance the view that climate change poses investment risks. Several of the bills have been passed into law in states including Mississippi and West Virginia. Republicans failed to gain control of the U.S. Senate in elections held Nov. 8, however, limiting their investigative powers.

A Reuters review of testimony, previously unreported public documents and interviews with elected leaders, lobbyists and attorneys detail mounting challenges to many pending anti-ESG bills. The tussles have financial implications for some of the largest investment firms that manage billions of dollars for state pension plans. Lauren Doroghazi, senior vice president at government relations consultant MultiState Associates, said the debates show lawmakers coming to terms with the anti-ESG bills' practical impact. Several public pension systems raised concerns about it, including the largest, the $182 billion Texas Teacher Retirement System (TRS). For instance, if federally-regulated local banks faced new national rules on an issue like climate change disclosures, banks would need special permissions from local officials to keep public business in Utah he said.

Companies Bp Plc FollowOSLO, April 22 (Reuters) - Norway's $1.4 trillion sovereign wealth fund, one of the world's largest investors, said on Saturday it will vote against a resolution calling on British oil major BP (BP.L) to adopt tougher greenhouse gas targets. The Norwegian fund, itself built on oil and gas revenue, owned 2.73% of BP's shares worth some $2.8 billion at the end of 2022. BP's board has recommended that shareholders vote against the resolution saying it was "unclear" what it wanted the company to do. Investor advisers ISS and Glass Lewis also recommended BP shareholders oppose the resolution, while Britain's Local Authority Pension Fund Forum (LAPFF) asked investors to back it. In February BP rowed back on plans to slash its 2019 oil and gas output levels by 40% by 2030, and now it envisages a 25% cut, angering climate activists.

☆ Upfront's Mark Suster created one of the most exclusive and glitziest gatherings in tech. But there's a dark side.
▼ + stars: | 2023-04-21 | by ( Ben Bergman | ) www.businessinsider.com time to read: +6 min

Mark Suster is managing partner of Upfront Ventures, a Los Angeles venture firmSuster's fastidiousness has created what many now consider one of the best tech conferences of the year. But Suster's abrasive, take-no-prisoners approach has also alienated some startup founders and investors. These luminaries were among the 1,000-plus attendees of last month's Upfront Summit, a glitzy, invite-only tech conference organized by Upfront Ventures and its managing partner, Mark Suster, in Los Angeles each year. "Mark and the Upfront Summit helped put LA tech and investing on the map," said Jeffrey Katzenberg, the cofounder of DreamWorks and WndrCo. Several years ago, a founder whose startup Suster invested in was in a conference room rehearsing their presentation for the Upfront Summit.

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