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BNP Paribas has been ordered by a U.S. judge to face a lawsuit accusing the bank of helping Sudan's government commit genocide between 1997 and 2011. The lawsuit alleges that BNP Paribas provided banking services that violated American sanctions, leading to human rights abuses such as murder, mass rape, and torture. The proposed class action was brought by U.S. residents who had fled non-Arab indigenous black African communities in Sudan. BNP Paribas had previously pleaded guilty and paid an $8.97bn penalty to settle U.S. charges of transferring billions of dollars for Sudanese, Iranian, and Cuban entities subject to economic sanctions. This is the first time a global bank has faced large-scale violations of U.S. economic sanctions. The judge dismissed claims for punitive damages, citing applicable Swiss law.

 

Reuters

[REPORT] 2024 IT Risk and Compliance Benchmark Report

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Rio Tinto aims to keep all of the copper from its Resolution mine inside the United States, according to a senior executive. The Arizona mine, if developed, would produce over 40 billion pounds of copper and supply more than a quarter of U.S. demand. However, the project is strongly opposed by some Native Americans amid concerns about its impact on a site of religious and cultural importance. The global copper industry is facing rising opposition to projects, which has raised concerns about the supply of copper needed for the energy transition. Prices are expected to jump more than 30% in the coming years due to growing demand from the personal electronics industry and artificial intelligence technologies.

 

Reuters

The Biden administration is expected to reject the construction of an access road to the Ambler mining district in northern Alaska. The U.S. Interior Department's recommendation to end the project could come in an environmental analysis due later this week. The Ambler project aimed to open a remote area rich in copper, zinc, and lead, as well as rare earths used in weapons manufacturing. Trilogy Metals is one of the potential developers in the region. Alaska Governor Mike Dunleavy has been urging President Joe Biden to approve the road project. The decision is expected to be announced in the upcoming environmental analysis.

 

Politico

Banks are increasingly paying attention to the financial implications of a rapidly-warming planet. Climate change has the potential to affect the safety and soundness of lenders and the stability of the broader banking system. The finance sector is now being forced to pay greater attention to physical risks, such as potential losses from extreme events and long-term changes in weather patterns. Recent calamities, including floods in Pakistan, wildfires in Canada, and a drought at the Panama Canal, have highlighted the need for banks to be risk-aware. JPMorgan has been adding personnel to assess the risks of environmental disasters, while Citigroup has introduced a Climate Risk Heat Map to assess the vulnerability of its credit exposures. But many companies are unaware of the vulnerability of their operations to physical risks from climate change.

 

Bloomberg

As climate change continues to bring hotter temperatures, last summer's record-breaking heat led to a significant increase in emergency department visits for heat-related illnesses. Working-age Americans were particularly vulnerable, often lacking access to air conditioning during triple-digit temperatures. "Heat-related illness will continue to be a significant public health concern as climate change results in longer, hotter and more frequent episodes of extreme heat," warned Ambarish Vaidyanathan, a researcher at the National Center for Environmental Health. The study found that July and August of 2023 had the highest rates of heat-related ER visits, with men being more affected than women. Working-age individuals, especially frontline essential workers, faced the highest risks. Certain regions, such as Arkansas, Louisiana, New Mexico, Oklahoma, and Texas, experienced a significant increase in heat-related ER admissions. The study highlights the need for better access to cooling spaces and affordable air conditioning to mitigate the health impacts of extreme heat.

 

U.S. News

Unilever chief executive Hein Schumacher is scaling back the company's commitments on plastics and diversity in response to growing investor unrest. Unilever, known for its environmental, social and governance (ESG) policies, plans to reduce its use of virgin plastics by one-third by 2026 instead of halving use by 2025. The company will also replace its commitment to pay all direct suppliers a living wage by 2030 with a promise covering half of its spending by 2026. Additionally, Unilever has dropped its pledge to spend €2bn ($2.15bn) with diverse businesses by 2025 and its commitment to have 5% of its workforce made up of people with disabilities. Mr Schumacher stated that the change in emphasis is driven by the need to address current global issues.

 

Bloomberg

Citigroup and Goldman Sachs are offering their vast network of corporate clients to help direct lenders find issuers in need of financing. The banks act as matchmakers, connecting smaller companies seeking loans with private lenders. The move comes as banks aim to regain business lost to private lenders in the leveraged buyout financing market. In addition to advising direct lenders, banks like Wells Fargo and Barclays have formed partnerships with private credit firms. Citigroup and Goldman Sachs have capitalized on their existing relationships to privately place notes and term loans for companies. By offering advisory services, banks can earn fees from both the issuer and the direct lender. Despite recent deals, advisory work in the private credit market remains a niche industry on Wall Street.

 

 

 

Bloomberg

Existing home sales fell 4.3% in March to a seasonally-adjusted annual rate of 4.19m units, the most in over a year, as mortgage rates lurched upward amid higher inflation readings. On an annual basis, they were down 3.7%, the National Association of Realtors' report added. Total housing inventory at the end of March was 1.11m units, up 4.7% from February and 14.4% from a year ago. Sales fell across the country except in the Northeast region, which saw an increase for the first time since November 2023. Meanwhile, the median price of an existing home was $393,500 last month, an increase of 4.8% from a year earlier. “Though rebounding from cyclical lows, home sales are stuck because interest rates have not made any major moves,” NAR chief economist Lawrence Yun said in a release. “There are nearly 6m more jobs now compared to pre-COVID highs, which suggests more aspiring homebuyers exist in the market.”

 

CNN	Washington Examiner

A measure of the U.S. economy put together by the Conference Board declined in March, although there is little sign that U.S. growth is significantly dropping off. The business research group's Leading Economic Indicators index fell 0.3%, after rising 0.2% in February. "Negative contributions from the yield spread, new building permits, consumers' outlook on business conditions, new orders, and initial unemployment insurance claims drove March's decline," said Justyna Zabinska-La Monica, senior manager, business cycle indicators, at the Conference Board. "Overall, the Index points to a fragile—even if not recessionary—outlook for the U.S. economy. Indeed, rising consumer debt, elevated interest rates, and persistent inflation pressures continue to pose risks to economic activity in 2024."

 

Market Watch

RTT News

EU antitrust chief Margrethe Vestager has rejected calls for a shake-up of European merger rules, emphasizing the importance of competition in fostering strong companies. Vestager's comments came in response to a report by former Italian Prime Minister Enrico Letta, who urged a reboot of the EU single market to catch up with global rivals in green and digital technologies. Vestager defended the effectiveness of merger regulation, stating that it protects competition and keeps markets fair. She also highlighted the role of effective merger control in enabling European companies to become champions in their fields. Vestager dismissed claims that merger control hinders pro-competitive consolidation, citing examples of mergers that have created global champions based in Europe. She emphasized the need for local champions to be efficient, innovative, and competitive at home in order to compete abroad. Vestager's remarks come as telecom companies push for looser merger rules to consolidate and boost revenues. However, regulators are cautious about reducing the number of players in the market. Vestager's stance aligns with her belief that fostering competition is the best way to compete with US and Chinese rivals.

 

Reuters

Dealmakers in the private equity industry are facing increasing pressure from their backers to put more of their own assets on the line. Investors are demanding that dealmakers contribute more of their personal wealth to new funds in order to secure their financial support. As a result, some private equity executives are taking out high-interest loans and pledging personal assets such as homes and art collections. The equity contributions from buyout firms into new funds have risen to an average of 5%, up from 2% last year. This shift in power reflects the changing dynamics of the industry, as investors seek greater alignment with fund managers. The demand for more personal assets is a response to the economic uncertainty and rising costs of financing that private equity firms are facing.

 

Bloomberg

Global financial companies are not adequately monitoring and archiving business-related communications on personal messaging apps, according to a survey by SteelEye. The survey found that 63% of compliance executives in the U.S., Europe, and Asia Pacific were not monitoring staff usage of WhatsApp for compliance purposes. Only 27% said they were investing in communications surveillance capabilities. The failure to monitor personal messaging apps could lead to regulatory breaches and fines. The U.S. Securities and Exchange Commission has already cracked down on business-related text messages over personal messaging platforms. Financial penalties linked to record-keeping missteps across personal messaging tools have exceeded $2bn.

 

Reuters

The Justice Department’s criminal division will give immunity to executives who provide information about corporate misconduct they themselves were involved in, according to details of a new pilot program. To be eligible, executives must voluntarily provide original information, cooperate with prosecutors and agree to give up any profits they may have derived from the reported misconduct. The program covers tips related to a range of misconduct, including financial and healthcare fraud, money laundering and corporate bribery. The policy is designed to put pressure on companies to disclose misconduct before their own executives do, said Nicole Argentieri, the head of the Justice Department’s criminal division, according to prepared remarks from Monday’s speech, which took place at an event hosted by New York University’s School of Law. “The department is upping the ante . . . by increasing the incentives for others to come forward,” Ms. Argentieri said, adding “Call us before we call you.”

 

Wall Street Journal

Caterpillar has been ordered by a Delaware federal jury to pay $100m in damages to International Construction Products (ICP), an importer that accused the heavy equipment maker of unlawfully interfering with a sales agreement and driving it out of business. The jury concluded that Caterpillar was responsible for contract-related damages suffered by ICP. The verdict can be appealed. ICP's lawyer, William Isaacson, called the victory a precedent for resilience and justice. ICP, an innovator in importing and selling new heavy construction equipment, had its contract with IronPlanet terminated in 2014, allegedly due to pressure from Caterpillar. Caterpillar denied interfering with ICP's business agreement and argued that ICP had not shown any damages. The jury rejected ICP's antitrust claim but ruled against Caterpillar on the contract claim.

 

Reuters

The European Court of Justice has ruled that the name of late Colombian drug lord Pablo Escobar cannot be registered as an EU trade mark. The court upheld the decision of the EU's intellectual property office (EUIPO) to refuse a trade mark application by Escobar Inc. The court stated that the name of Pablo Escobar is associated with drug trafficking, narco-terrorism, and the crimes and suffering resulting from them, rather than any potential good deeds. Escobar Inc., founded by Pablo Escobar's brother Roberto de Jesús Escobar Gaviria, had applied for the trade mark. Gaviria spent 12 years in prison for his involvement in his brother's criminal organization. The ruling prevents the use of Pablo Escobar's name for commercial purposes in the EU.

 

Bloomberg

Reuters