FT: UK escalates investigation into housebuilders over leaseholds

UK escalates investigation into housebuilders over leaseholds
Competition regulator launches enforcement action against Persimmon, Barratt, Countryside Properties and Taylor Wimpey

The UK competition regulator has deepened its investigation into four of the country’s biggest housebuilders over their treatment of leaseholders.

The Competition and Markets Authority said on Friday it had “uncovered troubling evidence of potentially unfair terms concerning ground rents in leasehold contracts and potential mis-selling”.

It said it was “concerned that leasehold homeowners may have been unfairly treated and that buyers may have been misled by developers”.

Enforcement action has been opened against Persimmon Homes, Barratt Developments, Countryside Properties and Taylor Wimpey. The CMA said it had written to the groups “outlining its concerns and requiring information”.

The regulator said potential outcomes included legal commitments that would change the way the groups do business and that “if necessary” it could take the companies to court.

“It is unacceptable for housing developers to mislead or take advantage of homebuyers,” CMA chief executive Andrea Coscelli said. “If our investigation demonstrates that there has been mis-selling or unfair contract terms, these will not be tolerated.”

Barratt said on Friday, in reply to the CMA announcement, that it “is committed to putting its customers first and will continue to co-operate with the CMA whilst it completes its investigation”.

Persimmon, Taylor Wimpey and Countryside could not be immediately reached for comment.

FT: Former Mars executive to head coffee group JDE Peet’s

Former Mars executive to head coffee group JDE Peet’s
Fabien Simon to take helm at newly listed JAB-owned roaster as it wrestles with pandemic changes

JAB Holdings is preparing to appoint a new chief executive to its €19bn coffee business, as freshly listed JDE Peet’s grapples with shifts in consumer drinking patterns triggered by the pandemic.

Fabien Simon, currently a partner and chief financial officer at JAB, will take over as chief executive after pushing ahead with the company’s IPO in May, Europe’s largest this year, despite the chill cast over markets by coronavirus.

The appointment of Mr Simon, a French national and judo enthusiast, is set to be announced on Friday and will be effective from Monday, according to people briefed on the situation.

The former Mars executive takes on the role as previous chief executive Casey Keller steps down following less than a year in the post, as the pandemic disrupted Mr Keller’s plans to move his family from the US to Amsterdam.

JDE Peet’s, whose brands of beans and capsules include Jacobs, Douwe Egberts, Kenco, L’Or and Tassimo, is seeking to rival Nestlé as a global roaster of coffee to drink at home.

The Amsterdam-based group has been assembled by Luxembourg-based JAB — which manages the wealth of Germany’s Reimann family, along with outside investors — over almost a decade, in a key plank of the strategy of JAB managing partner Olivier Goudet.

The IPO in May on the Euronext exchange raised €2.6bn, while shares closed on Thursday at €36.40, some 15.6 per cent above their issue price.

Mr Simon opted to push ahead with the float despite the uncertainty created by the coronavirus, arguing that global conditions might not stabilise for some time, according to people familiar with the situation.

JDE Peet’s aims to profit from what it believes is a long-term trend of consumers trading up to more expensive coffee and tea brands at home, while it also expands in markets such as China.

But it has faced a knock during the pandemic from a steep fall in consumers drinking coffee at venues such as cafés and bars, which account for about a quarter of its business. 

Overall sales declined 1.1 per cent in the first half of 2020 to €3.2bn, dragged down by a drop of almost 30 per cent in sales of coffee outside the home. JDE Peet’s said last month that these businesses had seen a “good recovery” from June.

Mr Simon served as chief financial officer of JDE Peet’s from 2014 to 2019 and oversaw the integration of the Douwe Egberts brand with the coffee business of US food group Mondelez. Before that he spent 14 years at Mars.

He will step down from his other JAB roles, including positions on the boards of group companies Keurig Dr Pepper and Krispy Kreme.

WSJ : Trump Will Roll Back More Regulations if Re-Elected, EPA Chief Says

Trump Will Roll Back More Regulations if Re-Elected, EPA Chief Says
Andrew Wheeler says the EPA would push to expand use of ‘science transparency’ for new rules and focus on completing Superfund cleanups

WASHINGTON—President Trump would press forward with efforts to ease regulatory burdens on business if re-elected for a second term, while working to ease bottlenecks that have delayed Superfund cleanup projects, U.S. Environmental Protection Agency administrator Andrew Wheeler said.

In an interview with The Wall Street Journal, Mr. Wheeler said a second term for the Trump administration would allow his agency to implement additional measures such as including a cost-benefit analysis of any new regulations.

He would also push to expand use of “science transparency,” in which the scientific justification behind new regulations would be disclosed.

At the same time, Mr. Wheeler said the EPA would continue to reinvigorate the Superfund program and other efforts to clean up polluted communities across the U.S. He said such efforts had gotten stalled before his arrival because of a focus on process, with resources devoted to measuring cleanup efforts rather than evaluating the results.

“We need to make sure we are speaking to people where they live and we’re addressing the problems they see on a daily basis,” he said. Mr. Wheeler said his agency’s focus on completing cleanup efforts led last year to the most deletions from the Superfund sites list since 2001.

Environmentalists have criticized Mr. Trump’s emphasis on easing regulatory burdens, and Democratic presidential nominee Joe Biden has offered a starkly different agenda if elected.

Mr. Biden has pledged a $2 trillion clean-energy plan to combat climate change, promising to make “historic investments” in new technology that could spur job growth.

Under Mr. Biden’s plan, which would be funded by tax increases on corporations and the wealthy, along with stimulus spending, his administration would try to eliminate carbon emissions from the power grid by 2035, put Americans into electric vehicles and zero-emissions mass transit and rebuild roads, bridges and other infrastructure.

The plan incorporates recommendations from the United Nations-led panel that calls for reductions in greenhouse-gas emissions to avoid potentially catastrophic results of climate change in coming decades.

Mr. Trump has said he doesn’t believe the U.S. government’s assessment of climate change, and his deregulatory policies have undone some of the country’s climate policy. Soon after his election, he said the U.S. would withdraw from the Paris climate accord, saying the terms of complying with the agreement would cost jobs and put the country at a competitive disadvantage.

Mr. Wheeler, 55 years old, was confirmed by the U.S. Senate in February 2019 to become the 15th administrator to lead the agency. He had led it in an acting capacity since July 2018, replacing Scott Pruitt. Under their watch, Mr. Wheeler said there had been reductions in air pollution and more than $40 billion for clean-water infrastructure investment.

“The Obama-Biden administration only focused on climate change at the expense of the communities here in the United States and the expense of reducing pollution where people live,” he said.

Former EPA water official Betsy Southerland, who left in 2017, called Mr. Wheeler’s progress in delisting Superfund sites “a paperwork exercise to document that previously completed cleanups, which can take a decade or more.”

“Wheeler has not been diligent in actually cleaning up sites during his tenure,” she said in an emailed statement. “The Trump EPA has the worst record of any previous administration in funding new cleanup projects ready for construction and completing construction of cleanup projects at sites.”

Ms. Southerland has criticized Mr. Trump’s policies before. Nearly a year ago she wrote for the Century Foundation, a progressive think tank, that “at Trump’s EPA, the attacks on science have been the most severe and all-encompassing.’’

Mr. Wheeler expanded on his priorities for a possible second Trump term Thursday at the Nixon presidential library in Yorba Linda, Calif. President Nixon created the EPA in 1970.

“The EPA’s mission has been straight forward since its founding: protect human health and the environment,” he said at the event.

Under Mr. Wheeler’s direction, the agency rolled back several measures put in place by the Obama administration, including a policy that expanded federal oversight and the threat of steep fines for polluting smaller waterways. The policy had been criticized by some farmers, property developers, chemical manufacturers and oil-and-gas producers.

White House officials are also updating the National Environmental Policy Act, which requires full environmental-impact statements to be completed within a speedier timeline of two years.

The law, enacted in 1970, gave environmentalists and conservationists a voice in planning, allowing them to sue if they thought developers weren’t properly following the law. But some business groups and trade unions said the process had become a tool to delay highways, pipelines and other infrastructure projects.

Other measures more directly benefited the U.S. energy sector. Earlier this week, agency officials completed a set of new guidelines for disposing of coal ash and wastewater from coal-fired power plants, changes that critics say could allow more pollutants into waterways.

Some of Mr. Trump’s overhauls took longer than expected, while others face challenges in court, where the administration has lost dozens of decisions related to environmental policy and other changes.

Corrections & Amplifications
White House officials are updating the National Environmental Policy Act. An earlier version of this story incorrectly stated that EPA officials are handling the changes. (Corrected on Sept. 3)

>>> Europe : Brokers Upgrades & Downgrades - 4th of September 2020 V2(+)

>>> Up
* Amplifon Raised to Buy at Jefferies; PT 34 euros
* Avance Gas Raised to Buy at Cleaves Securities
* Covestro Raised to Buy at Commerzbank; PT 50 euros
* Gerresheimer Raised to Buy at Bankhaus Metzler; PT 122 euros
* Hikma Raised to Overweight at Barclays; PT 2,800 pence
* Ontex Raised to Buy at KBC Securities; PT 18 euros
* RSA Raised to Buy at Investec; PT 490 pence (+)
* Sampo Raised to Buy at HSBC; PT 40 euros
* Zalando PT Raised to 89 euros from 85 euros at M.M. Warburg (+)

>>> Down
* Cembra Money Bank Cut to Hold at Octavian; PT 108 Swiss francs (+)
* Hiscox Cut to Hold at Investec; PT 820 pence (+)
* Hypoport SE Cut to Sell at Bankhaus Metzler; PT 415 euros
* Lancashire Cut to Add at Investec; PT 805 pence (+)
* NCC Raised to Buy at Canaccord; PT 210 pence (+)
* Pernod Ricard Cut to Neutral at Citi; PT 150 euros

>>> Initiation
* Cellnex Resumed Overweight at Morgan Stanley; PT 70 euros
* Corestate Rated New Hold at MainFirst; PT 19 euros
* Knorr-Bremse Rated New Buy at SocGen; PT 125 euros
* Quantafuel Rated New Buy at Arctic Securities; PT 125 kroner

>>> Call
* Bankia, CaixaBank Merger Would Offer Modest Upside: Jefferies (+)
* Berkeley Update Reassures, But Consensus Likely Unchanged: Citi (+)
* Hearing Aid Margin Upside Underrated, Amplifon to Buy: Jefferies
* Hikma Up to Overweight After Positive Vascepa Ruling: Barclays
* Cellnex Has M&A Firepower, Resume Overweight: Morgan Stanley
* Covestro Rating Up as Volume, Margins Recover, Commerzbank Says
* Gerresheimer Has Chance to Expand Margins, Revaluate: Metzler (+)
* Hikma Up to Overweight After Positive Vascepa Ruling: Barclays
* NCC Group Navigated Pandemic Well, Canaccord Genuity Says (+)
* Ontex Holder Activism Provides ‘Electroshock’: KBC Securities
* Pernod Vulnerable to Earnings Downgrades, De-Rating, Citi Says
* Ryanair Share Placing a Surprise, Doesn’t Change Outlook: Citi (+)
* Westwing’s Elevated Demand Level Seems More Sustained Now: Citi (+)

(BofA-ML) Bonds, Gold See Weekly Inflows While Stocks Post Outflows - pdf attach

In the week through Sept. 2, bond funds saw $22b inflows, largest in 6 weeks; gold had $1.2b inflows, equity funds had $1.5b outflows and cash funds lost $43.8b, BofA says in a note, citing EPFR Global data.
  • Among bonds, highlights include: IG bond fund inflows of $16.6b, third-largest ever; EM debt inflows seventh-largest ever at $3.2b, HY bond inflows of $1.1b
  • Among equity regions, highlights include: U.S. saw third week of outflows with $3.9b, Japan had third week of outflows with $0.5b, Europe had small inflows of $0.3b, EM had $1.3b of outflows
  • Strategists led by Michael Hartnett say September volatility and reversal in summer outperformance of cyclicals and defensives reflects impatience with delayed U.S. phase 4 stimulus at a time of peak V-shaped recovery
  • Strategists also say that France added to global stimulus, which has been a “game-changer” for rates and inflation asset allocation; forecasts lower and more volatile returns in 2021 and beyond, and big outperformance of inflation assets; vaccine belief is missing catalyst for start of yield rise and end of tech dominance