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On September 20, EU Economics Commissioner Valdis Dombrovskis stated at an informal meeting of EU finance ministers in Denmark that the European Commission hopes to finance Ukraine in 2026 through a so-called "compensatory loan" using Russian assets. Dombrovskis said during a press conference: "Thats right. I outlined the concept of such a compensatory loan at the meeting. I want to say that there is a willingness to work constructively together. Indeed, member states consider this a viable approach. Now, we will obviously continue to work hard under all conditions. Because we need to complete all these preparatory work relatively quickly. Ukraine will need this funding starting in 2026."On September 20th, Optus Communications, Australias second-largest telecommunications operator, experienced a 13-hour network outage, disrupting emergency call services and resulting in four deaths. Australian Communications Minister Anika Wells stated on the 20th, "It is unacceptable that Optus failed Australians at their most critical moment." She emphasized that telecommunications companies are legally required to ensure unimpeded emergency call service. The communications regulator has launched an investigation.On September 20th, ECB board member Stournaras said the bank may have completed its current cycle of rate cuts, and any further easing would require a material change in the outlook for inflation and economic growth. He noted that while inflation is expected to remain slightly below 2% over the next few years and risks are tilted to the downside, this alone does not justify further rate cuts. "Overall, in an environment of uncertainty, we are in a good equilibrium—not a perfect equilibrium, but a good one," said Stournaras, considered a dovish policymaker. "There is no reason to adjust interest rates at this point." "We are data-dependent—if we see a change in the situation at our monetary policy meetings, we will adjust accordingly," Stournaras said. "But it would require a material change in the outlook for us to do so." These comments echo recent hawkish stances from some officials. Estonian Central Bank Governor Müller said on Friday that ECB policy was already somewhat accommodative and there was no reason to cut rates further.On September 20th, at NIO Day, NIO Chairman William Li Bin stated that the company is currently working hard to increase production capacity for the all-new ES8. If production capacity still fails to meet demand, NIO will cover the difference from next years NEV subsidy reduction.Ukrainian Security Service official: Ukrainian drones attacked an oil pumping station involved in exporting Russian oil through the port of Novorossiysk.

Third Point's Loeb Praises Shell Moves, Sticks by Calls For Breakup

Haiden Holmes

May 09, 2022 10:14

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Daniel Loeb, an activist investor who desires the breakup of Royal Dutch Shell (LON:RDSa) Plc, hailed the energy giant's decision to relocate its headquarters, despite his belief that a new corporate structure would be more successful.


In October, Loeb said that his hedge fund Third Point LLC had acquired a $750 million interest in the business. On Friday, he informed his own investors that he has increased his Shell stake and held meetings with management, the board of directors, and other shareholders.


The letter, which was viewed by Reuters on Saturday, referred to the discussions as "productive" and stated that the company's stock price is now low, but that "good management" will lead to price increases.


Loeb is steadfast in his belief that the company's success might be enhanced by a different corporate structure. However, he also supported Shell's decision to relocate its headquarters from the Netherlands to the United Kingdom and to form a single class of shareholders.


This enables for a more flexible portfolio modification (via asset sales or spin-offs) and a more efficient return of cash, specifically through share repurchases, according to the letter.


In October, Loeb stated for the first time publicly that Shell would profit from separating its liquefied natural gas, renewable energy, and marketing businesses from its traditional energy business. He wrote that numerous stockholders share this opinion.


Current geopolitical events, according to Loeb's letter, highlight the strategic importance of dependable energy supply, particularly in Europe. The letter stated, "Shell's LNG (liquid natural gas) business, the largest in the world outside of Qatar, will play a crucial role in guaranteeing Europe's energy security."


This is the first time since the initial announcement that Loeb has informed his clients on the Shell deal.


In a broader sense, Loeb stated that his business has made more investments in energy firms and other stocks that will benefit from greater inflation, supply constraints, and a shift toward more renewable energy sources.

Third Point Partners' Fund lost 11.5% in the first quarter, but the firm avoided more severe losses in April, when its fund fell 1% and the S&P 500 index fell 8%.


Third Point sold off a number of major equity positions and made a new investment in mining giant Glencore (OTC:GLNCY), which is poised to profit from the transition to renewable energy. He anticipates that the company's new management team, enhanced ESG profile, and "quite significant financial returns to shareholders and government settlements" will allow it to catch up to other mining corporations.

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