Risk Channel delivers the latest, most relevant and useful business intelligence to key decision makers and influencers, each weekday morning.

The High Court in London has ruled that BHP, the world’s biggest mining company, is legally liable for one of the worst environmental disasters in the history of Brazil. Hundreds of thousands of Brazilians, around 2,000 businesses, and dozens of local governments had sued BHP over the collapse of the Fundao dam in Mariana, in the southeast of the country, which was owned and operated by BHP and Vale's Samarco joint venture. The event unleashed a wave of toxic sludge that killed 19 people and polluted the length of the Doce River.  Judge Finola O'Farrell said in a summary of her ruling that BHP should not have continued to raise the height of the dam before its collapse, which was "a direct and immediate cause of collapse of the dam giving rise to fault-based liability on the part of BHP."

 

France 24

Financial Times

Reuters

Norway is considering lifting its $2.1trn sovereign wealth fund’s ban on defence companies, potentially allowing investment in firms such as Lockheed Martin and Boeing by 2027. The ethical shift, prompted by Russia’s war in Ukraine and security concerns over US policy, would end a 20-year exclusion of firms involved in nuclear weapons components. Finance Minister Jens Stoltenberg noted the inconsistency of buying from these firms while forbidding investment in them. A commission will issue recommendations in 2026. The fund’s past investment stances have shaped global ESG trends, making this potential reversal especially significant.

 

Reuters

Carlyle is considering whether to file for a licence with US officials that would allow it to negotiate a deal for the foreign assets of Russian oil major Lukoil. Lukoil has been hit with sanctions as part of a US effort to bring the Kremlin to peace talks over Ukraine. Swiss-based commodities trader Gunvor ended its own pursuit of Lukoil's foreign assets after the US Treasury said it intended to block the deal and called the firm a Kremlin "puppet."

 

Financial Times

Reuters

Lloyds Banking Group has agreed to acquire UK digital wallet provider Curve for £120m. Curve, which has raised at least £250m in funding since it was established, has notified its investors that it has signed a share sale and purchase agreement with Lloyds. The sale has triggered strong backlash from some shareholders. IDC Ventures, which holds 12% of the fintech firm, argues that Curve’s management mishandled the process and that the deal is not in shareholders’ best interests. IDC says it may take legal action and does not intend to support the transaction. Lloyds aims to use the acquisition to strengthen its capabilities in online payments.

 

Sky News

GE Vernova and Siemens Energy are in early talks to supply gas turbines for a $7bn project rebuilding Syria’s war-damaged power sector. The plan includes 4,000 MW of combined-cycle gas plants and a 1,000 MW solar component. Siemens confirmed exploratory talks, saying it’s ready to support energy stability if agreements are reached. If finalised, these deals would mark among the first Western corporate entries into Syria since most US sanctions were lifted earlier this year. The project follows Syria’s political realignment and aims to restore infrastructure after a 14-year civil war.

 

Reuters

BASF has highlighted the importance of investing in China for future growth and called for stronger ties between Berlin and Beijing. The company is constructing its largest integrated chemical complex in southern China, costing approximately €8.7bn ($10.1bn). CEO Markus Kamieth said: "If you want to be a growth company in chemicals, you have to grow in China." Kamieth noted that initial business performance in China has been slower than anticipated, with lower margins than expected.

 

Hurriyet Daily News

The operators of the alleged £200m Ponzi scheme, 79th Group, face scrutiny after a UK High Court freezing order. Investigators suspect funds were misused for personal luxuries, including a private jet and a Caribbean villa. Insolvency firms Kroll and Quantuma reported that 79th Group exhibits "the hallmarks of being one of the largest UK-based Ponzi schemes." They identified £38m in questionable payments and over 130 bank accounts linked to the scheme. The Financial Conduct Authority is examining the role of financial institutions, including NatWest, in the case.

 

The Times

The diamond industry is calling for reform of the Kimberley Process, a certification scheme established in 2003 to eliminate conflict diamonds. Feriel Zerouki, president of the World Diamond Council, said: "The rules of yesteryear that were created 20 years ago, really need to be reformed." The current definition of "conflict" diamonds is too narrow, excluding regions like Russia despite ongoing conflicts. Critics argue the process enables "greenwashing" and lacks transparency. The council aims to broaden the definition to include armed groups and enhance protections for diamond-producing communities.

 

Financial Times

The Times

More than 5m UK company directors have yet to complete new identity verification checks required under the Economic Crime and Corporate Transparency Act 2023 ahead of today's deadline. Data shows that just 1.5m of the UK's 7m directors have registered so far, although this is up steeply from 300,000 in August. After the deadline, unverified directors will be unable to access Companies House services, such as filing accounts or updating company details. The checks aim to curb fraud and money laundering carried out through fake or shell companies. While business groups broadly support the reforms, many warn that the Government’s One Login system used for verification is confusing, unreliable, and sometimes non-functional, causing login loops, missing security codes, and rejected documents.

 

This Is Money

UniCredit CEO Andrea Orcel has said the Italian lender is seeking to comply with international sanctions in relation to its Russian business while also avoiding moves that could prompt Moscow to seize the unit. Orcel told attendees at a European Central Bank Forum on bank supervision that trying not to breach Western sanctions on Russia required a "galactic" effort, and nobody could be certain of full compliance.

 

Financial Times

Reuters

Zalando has appealed to the EU Court of Justice against its designation as a very large online platform under the Digital Services Act, arguing that the lower court misinterpreted its hybrid business model and applied an overly broad definition of third-party content. The online retailer had sued the European Commission after it was designated as a very large online platform (VLOP) under the Digital Services Act (DSA), in the same group as Alphabet's Google and Meta and subject to extra regulations. 

 

Reuters

BlackRock is adding stockpickers to Systematic Total Alpha, its top mathematical and data-driven hedge fund, following a strategy pursued by rivals to house human and computer-driven strategies under one roof.

 

Financial Times

Ofgem has seen a surge in connection requests from data centre developers in the UK, with the queue rising from 41 gigawatts to 125 gigawatts in just seven months. This demand far exceeds Britain's peak winter electricity needs of about 60 gigawatts. Ofgem has warned that the volume of applications "exceeds even the most ambitious forecasts for future demand" and poses "a serious risk to the timely connection of strategically important demand projects." Matthew Evans, director of markets at trade body TechUK, said: "We are working with Ofgem on a robust plan to address speculation in grid connection requests while safeguarding capacity for genuine projects."

 

The Times

Portugal's minority centre-right government has said it is open to discussions with unions ahead of a planned general strike on December 11. Minister for Cabinet Affairs Antonio Leitao Amaro said: "It is hard to understand why some want to halt the country . . . when the government is showing its real, true and concrete openness to dialogue." The looming strike, which is supported by the UGT and CGTP unions, opposes proposed labour law reforms that would ease dismissals and increase outsourcing. Unions argue these changes threaten workers' rights, while the government is seeking to boost productivity. UGT leader Mario Mourao has said that the strike could be called off if the government presented a new reform plan which takes into account union proposals.

 

Reuters

Ireland's SIPTU has called for stricter regulations to protect workers from online abuse. During its biennial conference in Galway, delegates passed a motion highlighting that public servants and union activists face organised harassment on social media - behaviour which would be illegal in person. The motion criticised the inadequate self-regulation of online platforms. Additionally, SIPTU is seeking legislation imposing heavy penalties on employers who violate workers' rights.

 

RTE.ie