2024-11-20 20:22
LONDON, Nov 20 (Reuters) - Muddy Waters has taken a short position in cosmetics company Elf Beauty (ELF.N) , opens new tab, the hedge fund's chief executive Carson Block said at the Sohn conference in London on Wednesday. Shares in Elf were down 10% on the day after Block alleged at the event that Elf had overstated its revenue over the past three years, possibly by as much as $190 million. California-based Elf did not immediately respond to Reuters email and phone requests for comment on Block's allegation. Block said that Muddy Waters would sell down its short position in Elf upon publishing its report about the company, for fiduciary responsibility and risk management purposes. Block questioned Elf's explanation at the time of its results in November last year for an additional $37 million of inventory in the second quarter. The company said at the time this was as a result of it taking ownership of inventory from China when it shipped rather than waiting for it to arrive at its U.S. distribution center. Block said on Wednesday that Muddy Waters had spoken to Elf's Chinese suppliers and a former manager in China and concluded that the way these inventory numbers had been accounted for were "categorically false". Muddy Waters alleged in a presentation that Elf overstated its inventory numbers in order to cover for insufficient sales. Elf said in a public filing it had net sales worth just over $1 billion in the fiscal year ended March 31, 2024. Sign up here. https://www.reuters.com/business/retail-consumer/elf-beauty-stock-slides-after-muddy-waters-says-it-has-shorted-its-shares-2024-11-20/
2024-11-20 20:21
Court calls on advisors to detail potential creditor payouts Wants Citgo data room reopened quickly to allow for new bids HOUSTON, Nov 20 (Reuters) - The U.S. judge overseeing an auction of shares in a Citgo Petroleum parent to pay Venezuela-linked creditors on Wednesday proposed major procedural changes to advance a case stalled by wide opposition and lawsuits by creditors in other courts. Judge Leonard Stark recommended a series of changes to encourage higher bids in a seven-year-long court case brought by companies pursuing up to $21.3 billion in claims for debt defaults and expropriations in Venezuela. An up to $7.3 billion bid by an affiliate of activist investor Elliott Investment Management could soon be challenged by the court's recommendation to choose a "starting point bidder" to move forward with the auction. Parties in the case have objected to Elliott's offer, prompting the judge to develop the new terms. A spokesperson for Elliott did not immediately reply to a request for comment. Stark proposed to reopen a Citgo data room for potential bidders to prepare their offers, grant all parties in the case access to terms, offer termination protections to all possible bidders, and give enough time for competitors to raise bids. The court said it wanted to continue with the revised sales process while creditors' lawsuits brought in other courts continue. Several had filed cases in New York and Texas seeking to improve their chances of obtaining proceeds from the auction. The judge's filing rebuked advisors for cutting off access to information on Citgo's finances, and restricting details of Elliott's bid terms. He plans to hold a Dec. 13 hearing on his proposed changes. Results thus far have not met the court's requirements and Stark asked creditors to help shape the terms needed to obtain the highest price for the shares. Advisors would also provide creditors with details on how they would share in the proceeds, he wrote. Stark called for the advisors handling the auction to come up with a breakup fee and escrow for a finalist. After that selection, advisors should allow a period for rival bids, and deliver their recommendation after a long-enough period for submissions, he said. Sign up here. https://www.reuters.com/legal/us-judge-proposes-reorganize-stalled-citgo-share-auction-2024-11-20/
2024-11-20 20:12
Italy mandates helmets, insurance for e-scooter riders E-scooter accidents rise, prompting stricter regulations Rental companies criticize new rules as overly punitive ROME, Nov 20 (Reuters) - Italy's parliament approved a bill on Wednesday that will require e-scooter riders to wear helmets and be insured, while also introducing tougher fines for rogue parking as part of a wider overhaul of the highway code. The Senate gave final approval to the law with a 83-47 vote. Like in other European countries, e-scooter usage has surged in Italy in recent years. But the boom has also brought a rise in accidents and complaints from drivers and pedestrians about riders flouting safety and parking rules. "No more wild scooters," Transport Minister Matteo Salvini said in a social media post, adding that e-scooters will also be required to have license plates and be banned from cycle lanes, pedestrian areas and non-urban roads. National statistics institute ISTAT said in July that road accidents with injuries involving e-scooters rose to 3,365 in 2023, with 21 deaths, up from 2,929 injuries and 16 deaths in 2022. Other countries in Europe have also restricted e-scooter use. Last year, French capital Paris banned rented two-wheeled electric vehicles following a referendum, and Madrid decided in September to ban them also. Advocates of e-scooters, which in cities like Rome and Milan are popular with locals and tourists, say they provide a zero-pollution and cheap alternative to public transport or other mobility options. E-scooter rental companies criticised the restrictions as overly punitive, pointing out that their vehicles are subject to speed restrictions and are geo-localised, minimising risks of misuse. "They have a technology that inhibits certain bad behaviours that are the source of the most serious accidents," Andrea Giaretta, Vice President for Southern and Western Europe, Middle East at Dott, told Reuters. Giorgio Cappiello, head of institutional relations in Italy for Bird, another rental company, called the new rules "completely ideological" and said his firm reported no casualties on their vehicles in 2022 and 2023. The revised highway code also includes stiffer penalties for driving under the influence of alcohol or drugs, as well as a jail term of up to 7 years for those who abandon animals on the road, leading to accidents. Salvini, who is also deputy prime minister and leader of the hard-right League party, said the changes were drawn up after wide consultations "with a common goal: reduce the carnage on Italian roads." Sign up here. https://www.reuters.com/world/europe/italy-enforce-helmets-insurance-e-scooter-riders-after-accidents-2024-11-20/
2024-11-20 20:08
Power outages in Washington, Oregon, California, British Columbia Storm expected to bring heavy rain to California by end of week Nov 20 (Reuters) - A powerful storm clobbered Washington state on Wednesday, knocking out power to hundreds of thousands of people while disrupting road travel and causing at least two deaths and two injuries. Winds should die down across the region by midday, but the storm has moved to California and is set to bring extreme rainfall by the end of the week, according to forecasters. A woman was killed on Tuesday when a tree fell on a homeless encampment in Lynnwood, north of Seattle, local officials said. A second woman was killed near Seattle when a tree fell on her home, Bellevue officials said. Two people were injured when a tree fell on their trailer in Maple Valley, southeast of Seattle. The storm with tropical-storm-force winds of 50 miles (80 km) per hour and gusts around 70 mph (110 kph) felled trees and power lines overnight. More than 530,000 homes and businesses in Washington, southwest Oregon and Northern California were without power, according to Poweroutage.us, down from more than 600,000 earlier. The windstorm and heavy rain also damaged the power system in Canada's Pacific coast province of British Columbia and cut power to some 225,000 customers Tuesday night, according to provincial electricity provider BC Hydro. By Wednesday morning, about 100,000 customers, mostly on Vancouver Island, remained without power. An NBC affiliate in Seattle broadcast images of cars smashed by fallen trees and damaged homes. The Snohomish Regional Fire & Rescue service in western Washington urged residents to stay home, with many trees and power lines down. “Trees are coming down all over the city & falling onto homes," the fire department of Bellevue posted on social media. "If you can, go to the lowest floor and stay away from windows. Do not go outside if you can avoid it.” Schools across western Washington canceled classes or postponed the start of school on Wednesday. "The storm is just beginning," said Rich Otto, a meteorologist with the National Weather Service's Weather Prediction Center in College Park, Maryland. "We haven't gotten a ton of rain yet, just two to three inches (5.1-7.6 cm) over southwest Oregon and northern California," Otto said. 'BOMB CYCLONE' The storm, called a "bomb cyclone" when the storm rapidly intensifies, will stall over Northern California in the next few days, Otto said. On Friday, rainfall could reach up to 20 inches (51 cm) in parts of southwestern Oregon and northern California, Otto said. A bomb cyclone rapidly intensifies in 24 hours or less when a cold air mass from the polar region collides with warm tropical air in a process that meteorologists call bombogenesis. The weather service has issued warnings and watches across the U.S. Pacific Northwest for high winds and flooding, including blizzard warnings, from northern Washington to the Sierra Nevada Range. The Washington state's transportation department warned motorists to be cautious while on roadways as downed trees and weather conditions slowed traffic across the state. Sign up here. https://www.reuters.com/business/environment/bomb-cyclone-pounds-northwest-us-leaving-600000-without-power-2024-11-20/
2024-11-20 19:50
HARARE, Nov 20 (Reuters) - Southern Africa's regional bloc on Wednesday extended by a year its troop deployment in Democratic Republic of Congo, where it is helping the government fight rebel groups. The Southern African Development Community (SADC) deployed the mission in Congo, a major producer of metals like cobalt and copper, in December 2023 with a one-year mandate. A communique issued after regional leaders met in Zimbabwe's capital Harare expressed concern at the security and humanitarian situation in Congo and reiterated the bloc's support for the government. Congo is one of SADC's 16 member states. "Summit extended the mandate of the SADC Mission in the Democratic Republic of Congo by one year, continuing the regional response to address the prevailing unstable security situation," the communique said. Conflict in Congo's restive east has raged for decades between a myriad of rival armed groups over land and resources. Hundreds of thousands of people have been killed and millions displaced in the fighting, which has continued despite numerous ceasefires. Sign up here. https://www.reuters.com/world/africa/southern-african-bloc-extends-troop-deployment-congo-by-year-2024-11-20/
2024-11-20 19:27
SARAJEVO, Nov 20 (Reuters) - Bosnia and Herzegovina, facing risks from floods, wildfires and severe air pollution, needs to invest $6.8 billion over the next decade to offset the impact of climate change, a World Bank report said on Wednesday. Climate-related damage, with floods as a major natural hazard, could shrink Bosnia's economy by up to 14% by 2050, the report said, stressing the need for nature-based solutions such as floodplain restoration and peatland preservation to strengthen resilience and drive economic growth. "Climate change is not just an environmental challenge; it is a direct threat to Bosnia and Herzegovina's economic stability, public health, and social well-being," Christopher Sheldon, World Bank Country Manager for Bosnia and Montenegro said in a statement. Last month, floods struck parts of the country killing 27 people, destroying houses, farms and transport infrastructure, and hitting companies' exports hard. The floods in 2014 affected one million people and caused damage equivalent to 15% of GDP. Timely investments in climate adaptation, particularly in flood prevention infrastructure, can significantly protect the Balkan country's economy, the bank said. Funding developing countries' adjustment to climate change and transition to cleaner energy is the focus of the COP29 summit in Azerbaijan, which is trying to agree a new target for how much money should be provided. The World Bank report also emphasized the importance of a green transition by 2050, including phasing out coal and lignite power, expanding renewable energy sources such as solar and wind and improving energy efficiency across various sectors. "BiH (Bosnia and Herzegovina) needs $6.8 billion in adaptation investments, mostly front-loaded within the coming decade, yielding high economic and social returns," the report said. It added that the private sector is expected to fund a major portion of the decarbonization efforts, especially in transport, buildings and power. Bosnia produces about 60% of its electricity from coal-fired power plants and the rest mainly from hydro. It has set a target of a 43.6% share of renewable energy in its power production in 2030, but the transition has been slow. The country should build strong institutions and regulatory frameworks to ensure effective and sustained climate action, the report said. Sign up here. https://www.reuters.com/business/environment/bosnia-needs-invest-68-bln-tackle-climate-change-impact-world-bank-says-2024-11-20/
