CLOs

German supermarket chain Aldi announced Tuesday it will give up to four hours of pay to US workers who get the COVID-19 vaccine, reports Reuters (19 January). Aldi, which has more than 2,000 stores in 37 US states, said it would cover costs associated with vaccine administration and implement on-site vaccination clinics at its warehouse and office locations. With the announcement, Aldi became the latest firm in the grocery sector to offer incentives for coronavirus vaccination. Dollar General last week offered frontline employees a similar incentive after they get the vaccine, while Instacart has said it will pay US$25 to more than half a million gig workers if they take time off to get vaccinated.

From "Supermarket Chain Aldi to Pay US Workers Who Get COVID-19 Vaccination"
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Patrick Ky, executive director of the European Union Aviation Safety Agency (EASA), announced Boeing's 737 Max jet will be approved to resume flights in Europe next week, the Associated Press (19 January, Rising) reports. The approval follows nearly two years of reviews spurred by two deadly crashes. The planes were grounded worldwide in March 2019 after the second fatal crash. Investigators determined the cause of the crashes was a faulty computer system that pushed the plane’s nose downward in flight and couldn’t be overridden by pilots. Ky told reporters the 737 Max will be permitted to fly so long as it meets conditions specified by EASA and that pilots are up to date on their training. The 737 Max returned to US skies last month, and has also been cleared in Brazil and Canada.

From "European Aviation Agency: 737 Max to Be Cleared Next Week"
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Washington State Gov. Jay Inslee on Monday announced a series of new efforts to help boost the state's COVID-19 vaccinations, including partnerships with such companies as Kaiser Permanente, Microsoft, and Starbucks, confirms CNN (19 January, Rose, Maxouris). Partnership members will focus on different aspects of vaccine distribution. Kaiser Permanente, for instance, will be tasked with helping plan for mass vaccination clinics, while Starbucks will assist with operational efficiency. Microsoft President Brad Smith said his company will provide technology expertise. Starbucks President and CEO Kevin Johnson said his company is not a healthcare firm, but said Starbucks' experience operating 33,000 stores and serving 100 million customers weekly will help it coordinate vaccine distribution.

From "Washington State Announces Partnership with Companies to Boost Vaccinations"
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Deutsche Welle (19 January) reports that new car sales in the European Union fell by almost 24 percent last year amid the coronavirus pandemic. The European Automobile Manufacturers Association (ACEA) said in its report Tuesday that new car registrations in Europe in 2020 plunged by 23.7 percent, or around three million vehicles. According to the ACEA, this was "the biggest yearly drop in car demand since records began" in 1990. All major European car markets recorded double-digit declines, most notably Spain (32.3 percent), Italy (28 percent), France (25 percent), and Germany (19 percent). A month-by-month breakdown of the figures showed that most of the damage was done in March, April, and May. In April, the worst month of the year, sales were down by more than 75 percent.

From "Car Sales in Europe Suffer Worst Fall Ever in Pandemic Year"
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Glencore has sold its majority stake in Mopani Copper Mines, a struggling Zambian copper business, to the Zambian government for US$1.5 billion, reports the Financial Times (19 January, Hume, Cotterill). Last year Glencore tried to suspend operations, triggering a row with Zambia, which threatened to revoke the mining firm's licenses and briefly detained its country head. Under the deal announced Tuesday, Glencore will transfer its 90 percent stake in Mopani to ZCCM Investments Holdings, a state-controlled investment vehicle. In return, Lusaka will repay US$1.5 billion of loans from future output, and Glencore will also retain marketing rights for the copper production until debt has been repaid. Mopani was previously one of Glencore's "focus" assets.

From "Glencore Sells Zambia Copper Unit to State in US$1.5 Billion Deal"
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Turkey has imposed advertising bans on Twitter, Periscope, and Pinterest after they failed to appoint local representatives in Turkey under a new social media law, according to decisions published on Tuesday and cited by US News & World Report (19 January, Sezer, Butler). Critics have contended the social media law stifles dissent. Under the terms of the law, social media companies that do not appoint special representatives in Turkey are liable for a series of penalties. Furthermore, authorities can remove content from platforms, rather than just block access as they have done in the past. Deputy Transport Minister Omer Fatih Sayan said Twitter and Pinterest's bandwidth will be cut by 50 percent in April and 90 percent in May. Some other firms, including Facebook, Google, and YouTube, have indicated they will appoint a local representative, but Facebook said it would withdraw the person if Ankara tries to pressure the company over content allowed on its platform.

From "Turkey Slaps Ad Ban on Twitter Under New Social Media Law"
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Unions at the French drugmaker Sanofi held a one-day strike Tuesday at several sites, including the lab where it is developing a COVID-19 vaccine, to protest job cuts planned by the company, reports the Associated Press (19 January). Some 200 workers gathered to protest outside of the entrance to Sanofi's research and development facility in Marcy l’Etoile in central France. According to the workers, the planned job cuts could impede France's efforts to fight the novel coronavirus. Sanofi last year announced it will cut 1,000 jobs in France over three years, and on Tuesday revealed it will rely on voluntary departures to hit that target. Sanofi, France's biggest pharmaceutical company and a world leader in vaccine development, has attracted criticism for its slow COVID-19 vaccine rollout.

From "Unions Strike Over Job Cuts at French Vaccine Maker Sanofi"
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The Financial Times (17 January, Mooney) reports that the responsible investment charity ShareAction is urging UK companies to make their annual shareholder meetings (AGMs) accessible through technology, calling on chairs of FTSE 100 companies to "learn from the experience of 2020" and "put in place all possible measures to maximize the quality and quantity of shareholder engagement during the 2021 AGM season." ShareAction advised the use of videoconferencing, and for businesses to offer shareholders live, interactive, question-and-answer sessions with the full board, with voting on resolutions held after discussions. The letter comes amid mounting concerns about AGM operations, while ShareAction is set to issue a report in the weeks ahead about what future AGMs should look like, and propose a revamp of the events in order to make them more relevant to investors.

From "UK Companies Warned Against Shutting Investors Out of AGMs"
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Office Depot rebuffed an unsolicited takeover offer from Staples but indicated it is open to an alternative deal, reports the Wall Street Journal (19 January, Lombardo), the latest twist in a yearslong dance between the office-supply retailers. Staples on 11 January proposed to buy Office Depot's parent, ODP Corp., for US$40 per share, or more than US$2 billion. ODP, however, believes a sale of its retail and consumer-facing ecommerce operations to Staples or a joint venture is preferable to a full takeover. In a letter sent by ODP’s chairman to an official of the private equity firm that controls Staples and seen by the Wall Street Journal, ODP said such a deal would afford the same cost savings as a full company sale, but be less likely to attract prolonged regulatory scrutiny. Staples has tried to acquire its main brick-and-mortar rival three times, but has previously been stymied by antitrust enforcers.

From "Office Depot Rebuffs Takeover Offer From Staples"
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MGM has said it will not make a firm offer to buy the UK gambling company Entain two weeks after its £8 billion proposed takeover bid was rejected by the target's board, reports the Financial Times (19 January, Hancock). Entain's share price fell sharply on the news and was down 16 percent in lunchtime trading in London. Entain, which owns the Ladbrokes and Coral chains in the United Kingdom, believed MGM undervalued the business in its proposal. The news also follows the shock departure of Entain's chief executive last week.

From "MGM Walks Away From Entain After Rejection of £8 Billion Offer"
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Facebook is claiming it does not conduct business in Australia and does not collect and hold data in the country in its effort to avoid liability over the Cambridge Analytica scandal, according to the Guardian (18 January, Knaus). The Office of the Australian Information Commissioner has accused Facebook of serious and repeated breaches of privacy law by leaving its users exposed to having their data sold and exploited. The privacy commissioner last year took Facebook to court over an alleged mass privacy breach involving the use of Australians’ Facebook data in a vote-influencing operation involving Cambridge Analytica. According to court documents, only 53 people in Australia downloaded Cambridge Analytica's personality quiz app, but it was able to harvest the data of 311,127 Australians in total. As part of its defense, Facebook has argued it does not conduct business in Australia. Though Australian Justice Thomas Thawley in September rejected that argument, the social media giant is now seeking to appeal Thawley’s ruling to the full bench of the federal court.

From "Facebook Claims It Does Not Conduct Business in Australia in Cambridge Analytica Appeal"
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The US Supreme Court on Tuesday heard arguments in a case brought by the city of Baltimore against more than a dozen major oil and gas companies, with the city arguing the fossil fuel giants should pay for the costs of climate change, reports NPR (19 January, Hersher). The companies named in the lawsuit include BP, ExxonMobil, and Shell. The city of Baltimore contends the companies should be responsible for paying for climate change because they knew their products caused potentially catastrophic global warming. The Baltimore case is one of more than 20 similar lawsuits brought in recent years, all making a variety of arguments about why fossil fuel companies bear responsibility for the costs of climate change, including that companies misled the public about the threat burning oil and gas poses to the climate. The Supreme Court is considering a narrow jurisdictional question. The Baltimore case was filed in state court, but an attorney for the fossil fuel companies on Tuesday argued such cases should be tried in federal court. Karen Sokol, a law professor at Loyola University of New Orleans, said state courts have a long history of handling cases about consumer protection, including lawsuits involving alleged corporate misinformation campaigns. If the Supreme Court decides in Baltimore's favor, it would likely pave the way for cases against oil and gas companies to proceed in state courts across the country.

From "US Supreme Court Considers Baltimore Suit Against Oil Companies Over Climate Change"
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UK supermarket executives have pointed out enforcing mask wearing in stores is difficult, as it is not possible to verify claims of medical exemption on the spot, reports the Financial Times (15 January, Eley, Megaw). UK government guidance does not require that people exempt from wearing masks carry a doctor's note to that effect, making it difficult to distinguish between those who cannot wear masks and those who choose not to wear masks. Accordingly, some UK retailers, including Iceland and smaller grocery groups, have announced they will not enforce mandatory mask rules at their stores. On the flip side, Wm Morrison, Waitrose, Aldi, Sainsbury's, Asda, and Tesco have all indicated they will refuse entry to people not wearing masks. For some smaller grocery groups, the cost of hiring additional security guards to enforce COVID-19 rules is too much, and they will instead rely on law enforcement officials to uphold pandemic-era rules.

From "UK Retailers Face Up to Challenge of Enforcing Mask Wearing"
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Ireland's freight transport industry has warned that severe disruptions could be in store for important supply chains when pre-Brexit stockpiles run dry in the coming weeks, reports the Financial Times (15 January, Beesley). Freight bosses asked Micheál Martin's government to seek EU exemptions from onerous customs, sanitary, and phytosanitary paperwork for several months so they can adjust to the new regime. The Freight Transport Association of Ireland said the industry is "struggling to keep the flow of goods moving" amid new rules for pre-boarding notifications, safety and security declarations, and import/export declarations. According to the association, supply chains have already felt a "significant shock" since the end of the post-Brexit transition on 31 December.

From "Irish Freight Industry Warns of Brexit Threat to Supply Chains"
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The German economy contracted by five percent last year, according to full-year gross domestic product (GDP) data released Thursday and reported on by CNBC News (14 January, Ellyatt). The preliminary figures, which come after a year of economic turbulence for Germany and the rest of the world, were slightly better than the 5.1 percent initially forecast. COVID-19 cases have prompted a series of lockdowns on public life and economic activity in Germany. Earlier this month, Chancellor Angela Merkel announced the latest lockdown would be extended until the end of January.

From "Germany’s Economy Contracted by Five Percent in 2020 as Coronavirus Lockdowns Hit Growth"
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The Wall Street Journal (14 January, Rubin, Collins) is reporting that President-elect Joe Biden is calling for a US$1.9 trillion pandemic relief plan to help Americans continue to weather the economic shock of the COVID-19 crisis. Biden last night pressed the often-divided Congress for urgent and unified action on a plan that calls for a round of US$1,400-per-person direct payments to most households, a US$400-a-week unemployment insurance supplement through this year's third quarter, expanded paid leave, and an increase in the child tax credit from US$2,000 to US$3,000. Aid for households makes up about half of the plan’s cost, with much of the rest going to vaccine distribution and state and local governments. Regarding the additional stimulus checks, his plan would expand eligibility to include adult dependents such as college students who were excluded from previous versions. The plan also includes money to help households with the costs of rent and child care, US$350 billion for state and local governments, and an extension of the eviction and foreclosure moratorium through September.

From "Biden Proposes US$1.9 Trillion COVID-19 Relief Package"
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The UK Supreme Court on Friday ruled many insurance policies should cover losses caused by coronavirus lockdowns, Reuters (15 January, Ridley, Cohn) reports. Six of the world's largest commercial insurers — Hiscox, RSA, QBE, Argenta, Arch, and MS Amlin — had argued that many business interruption policies did not cover business losses due to the government-imposed COVID-19 lockdowns, but the high court unanimously dismissed the insurers' appeals after scrutinizing non-damage insurance policy clauses. The ruling delivered a comprehensive victory for the Financial Conduct Authority (FCA) as well as many small businesses in the United Kingdom. The FCA brought the closely-watched test case on behalf of policyholders last June, saying it could affect 370,000 policyholders and 60 insurers, paving the way for an estimated £1.2 billion pounds in claims.

From "UK Top Court Clears Way for COVID-19 Business Insurance Payouts"
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Many corners of the travel industry are looking for a way to pitch in to help end the pandemic, reports the New York Times (15 January, Kamin). The industry has been battered by the COVID-19 pandemic, with nearly 40 percent of all travel jobs eliminated since March. With hotels at record-low occupancy, some airports running on skeleton crews, and fairgrounds emptied of guests, many domestic travel companies and operators have begun donating their resources and newly vacant spaces to help get the pandemic under control. More than a dozen US airports now double as COVID-19 testing sites, and some hotels worldwide are housing frontline healthcare workers. Last week, meanwhile, Disneyland began operating as a COVID-19 vaccination site. The theme park has been closed since mid-March, and will soon host 7,000 vaccinations per day. The site is being run by Orange County, but Walt Disney Co. is providing some staffing assistance. Elsewhere in California, Monterey Bay Aquarium is lending one of its ultracold freezers to a nearby hospital to safely store coronavirus vaccines.

From "Disneyland as a Vaccination Site? Airports as Test Centers? The Travel Industry Pitches In"
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Government officials in Queensland, Australia, want to repurpose camps designed for resources workers as isolation hubs in remote scrubland where travelers can go to quarantine after arriving in the state, reports the Wall Street Journal (15 January, Hoyle). Australia has had one of the world's most aggressive quarantine programs to keep the virus at bay, but Annastacia Palaszczuk, the Queensland premier, thinks a new plan must be made to fight new strains of COVID-19. The idea of using remote workers' camps to house quarantining travelers illustrates how some leaders are considering more extreme measures to protect people from the novel coronavirus. Officials believe housing travelers in resource workers' camps will enable health authorities to quickly get on top of outbreaks and limit their spread. Mining companies, however, are worried that using their camps as quarantine sites could jeopardize their relationships with nearby communities. Additionally, some lawmakers from other Australian states are opposed to the idea because some camps are far away from large hospitals.

From "Australia Considers New COVID-19 Quarantine Strategy: Outback Isolation"
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The French oil and gas company Total is withdrawing from the energy association American Petroleum Institute (API) because it disagrees on climate-related policies, reports the Associated Press (15 January, Corbet). Total said in a statement Friday it would not renew its membership for 2021 following an analysis of API’s position on climate issues. The company specifically noted API's "support during the recent elections to candidates who argued against the United States’ participation” in the 2015 Paris Agreement to curb climate change. Peter Frumhoff, the director of science and policy at the US-based Union of Concerned Scientists, said Total’s decision to leave the group was significant. API has more than 600 members and represents all segments of the oil and natural gas industry in the United States.

From "Oil Giant Total Withdraws From US Energy Lobbying Group"
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