Uber is pulling out of Québec due to regulatory issues
Uber is planning to cease operations in Québec next month due to some newly proposed regulations by the Ministry of Transportation. Uber’s last day of operations in Quebec will be October 14.
In the last year, Uber was operating in Québec as a pilot program, which Uber said was a “huge success.” But earlier this month, Québec’s local government announced some new policies for Uber and its drivers, such as requiring Uber drivers to go through a 35-hour training session, which is something local taxi drivers must complete. The government also wanted Uber drivers to undergo mandatory car inspections every year, as well as background checks conducted by law enforcement officials.
“Given the success of the pilot project, we were disappointed that the government now wants to add new rules that rely on old administrative practices rather than renewing the project in full and supporting technology and consumer choice,” Uber Québec GM Jean-Nicolas Guillemette said in a statement to TechCrunch. “Among other things, the proposed rules would impose onerous training obligations developed for a different industry on ridesharing drivers, without taking into account the benefits that come with new technology such as in-app safety features, GPS tracking of every trip, a two-way rating system, and 24/7 support.”
Shortly after Quebec’s Ministry of Transportation announced its new policies, Uber said the regulations would “significantly threaten Uber’s ability to continuing operating in Quebec.”
Meanwhile, London’s transportation regulator, the TfL, recently banned Uber from operating in the city. The TfL, citing Uber’s approach to handling criminal offenses, Greyball and medical records, determined Uber is “not fit and proper” to hold a private hire operator license.
Here’s Guillemette’s full statement regarding pulling out of Quebec:
The Ministry of Transportation has proposed new regulations that will considerably impact the lives of thousands of driver partners who wish to work on their own schedule and which will, if implemented, prevent Uber from continuing operations in Quebec as early as October 14.
Over the past year, Uber has been operating in Québec under a government pilot project, which was a huge success. Hundreds of thousands of riders have taken millions of safe rides thanks to the incredible community of driver partners and the technology that makes the Uber app such a safe and reliable way for Quebecers to get around their communities.
Given the success of the pilot project, we were disappointed that the government now wants to add new rules that rely on old administrative practices rather than renewing the project in full and supporting technology and consumer choice. Among other things, the proposed rules would impose onerous training obligations developed for a different industry on ridesharing drivers, without taking into account the benefits that come with new technology such as in-app safety features, GPS tracking of every trip, a two-way rating system, and 24/7 support.
GOP Tax Plan to Allow for Top Individual Rate Above 35%
Framework would give Congress discretion; current top rate is 39.6%
WASHINGTON—The Republican tax plan being released Wednesday will open the door to a top individual tax rate that is higher than the 35% that has been in previous plans, according to two people familiar with the discussions.
Republicans have been discussing collapsing the current seven individual tax brackets into three, with a top rate of 35%. The idea now under consideration would allow for a fourth rate at the very top, likely somewhere between the 35% in proposals and the existing top rate of 39.6%.
The document won’t offer details about the level of that new top rate or the income level at which it would apply, the two people said. Instead, it will give Congress discretion to agree on a measure to meet whatever target lawmakers set for the distribution of the tax burden among different income groups.
An additional top rate on the highest earners would make it easier for President Donald Trump to argue—as he has sometimes promised—that the wealthiest households aren’t getting a significant tax cut. It also could spark an intra-Republican debate over how to tax the highest earners. That could complicate already messy congressional deliberations over the details of tax policy this fall.
Republican lawmakers and the White House are expected to release a blueprint for their plans on Wednesday and Mr. Trump will speak in Indiana on the issue. House Republicans will hold their own half-day retreat on the subject in Washington on Wednesday.
The framework is the product of the so-called Big Six of U.S. policy makers on taxes: House Ways and Means Chairman Kevin Brady (R., Texas), Senate Finance Chairman Orrin Hatch (R., Utah), Treasury Secretary Steven Mnuchin, White House economic policy chief Gary Cohn, Senate Majority Leader Mitch McConnell (R., Ky.) and House Speaker Paul Ryan (R., Wis.).
It will be difficult to tell who gets the tax cuts under the plan until lawmakers release a complete tax bill and independent analysts examine how the distribution of the tax burden differs from today’s tax system.
That full bill isn’t likely to appear until after Congress adopts a budget resolution. The budget allows for the Senate to pass the tax bill on a simple majority vote without Democratic support.
In a meeting at the White House on Tuesday with Republican and Democratic members of the House Ways and Means Committee, Mr. Trump said his administration’s tax proposal to be unveiled on Wednesday would be “a very, very powerful document.”
He said the proposal would call for simplifying the tax code, calling the current version “too complicated.”
Mr. Trump also said the proposal would cut taxes for the middle class and for corporations.
“If we do this, we will create millions of new jobs for our people,” he said. “We will become a competitive nation again.”
Taxes on high-income households are one of the core issues that divide the parties and most Democrats have insisted that the wealthiest Americans not got a tax cut. If Mr. Trump wants Democratic votes, that could require significant changes in the GOP plan because it has many pieces that benefit high-income households, including a lower corporate tax rate, a lower tax rate on businesses that pay taxes on their owners’ individual returns and the repeal of the estate and alternative minimum taxes.
Rep. Richard Neal of Massachusetts, the top Democrat on the Ways and Means Committee said Mr. Trump told the lawmakers Tuesday that the rich wouldn’t benefit and that Mr. Mnuchin said they were willing to negotiate on the top rate.
The White House and the Treasury Department didn’t immediately respond to requests for comment.
Mr. Neal said he favored keeping the top rate at 39.6% and wanted to see distribution tables, or estimates of how each income group would fare in the plan.
“Concentrated wealth in America is an issue that we’ve got to be concerned with,” he said.
Republicans do want to eliminate some deductions that largely benefit high-income households, namely the break for state and local taxes.
Rep. Pat Meehan (R., Pa.), who was at the White House meeting, said the gathering was important and that there was common ground on looking for a better tax system.
But, he said, “We have to be realistic about what kind of bipartisanship we can ultimately expect.”
Nestlé bows to investor and sector pressures with strategic shift
Swiss group sets first profit target, speeds up share buyback but no change on L’Oréal
Nestlé has for the first time set a target for increasing profit margins, marking a significant shift from its traditional sales-focused model as the Swiss company reacts to competitive pressures facing big consumer goods groups.
The world’s largest food and drinks company said it would aim for underlying trading operating profit margins of between 17.5 per cent and 18.5 per cent by 2020 — up from 16 per cent last year.
Tuesday’s announcement is a strategic switch for Nestlé, which has historically relied on leveraging its size to power sales growth. It was part of a strategy update unveiled in London by Mark Schneider, the former head of German healthcare group Fresenius who became chief executive in January.
Mr Schneider, however, also reconfirmed Nestlé’s target of “mid-single digit” like-for-like sales growth by 2020, and said the margin target was unlikely to be raised after 2020. “I’ve watched this margins arms race in this industry with apprehension. If you maximise margins, you don’t have a sustainable business model — bad things will happen,” he told investors.
The company said margin improvements could come through cost savings, mainly from manufacturing, procurement and administration.
Nestlé was thrown into the spotlight in June when Daniel Loeb, founder and chief executive of Third Point, the US activist hedge fund, disclosed he had taken a 1.25 per cent stake in Nestlé, worth $3.5bn. He called on the group to shake up “its old ways” and proposed a margin target of 18-20 per cent by 2020.
Third Point did not comment on Tuesday but Mr Loeb praised finance director François-Xavier Roger at the presentation. “You put a lot of work into this today. You did a great job,” he said.
However, one investor at the conference said Mr Schneider had “given in” to Third Point and “thrown a bone to the wolves”.
Compared with rival Unilever’s 20 per cent profit margin goal, Nestlé’s target “does not look impressive but it sets the trend for the company”, said Jean-Philippe Bertschy, analyst at Vontobel. UBS analysts described the targets as “sensible” and “likely to reassure the sceptics that change is under way”.
Separately, Mr Schneider announced Nestlé had no immediate plans to either increase or sell its 23 per cent stake in French cosmetics group L’Oréal. Speculation about its stake, which is worth SFr26bn and is in effect held as a financial holding, had grown after the death last week of Liliane Bettencourt, the billionaire daughter of the company’s founder whose family is also a large shareholder.
The stake had been a “fabulous” investment but “our approach is currently not changing”, the Nestlé boss said.
Nestlé also said it would accelerate a share buyback programme worth up to SFr20bn, announced in June, while still pursuing acquisitions in “targeted categories and geographies”.
Mr Schneider expected about 10 per cent of the company’s portfolio to be affected by acquisitions and divestments. Nestlé is quitting the US confectionery market — but Mr Schneider ruled out also withdrawing from US frozen food, which he said fitted modern lifestyles.
Like other consumer goods companies, Nestlé has faced a backlash against “big food” and processed products, as well as a slowdown in emerging markets on which it depends for 42 per cent of its SFr89.5bn annual sales. Its products include KitKat chocolate bars, Nescafé and Nespresso coffee, and Perrier water.
Against the backdrop of lacklustre growth, the emphasis in the industry has been on cost-cutting to boost profits.
Leading the way has been Kraft Heinz, controlled by Warren Buffett’s Berkshire Hathaway investment group and 3G Capital. Kraft Heinz’s operating profit margin of 23 per cent is significantly higher than Nestlé’s.
Unilever was the target of a $143bn takeover approach from Kraft Heinz in February despite the US company being half the size of Unilever in terms of revenues. Although the bid was aborted, it left Unilever — and rivals including Nestlé — looking vulnerable.
Revenue growth of the 50 biggest consumer goods companies has fallen steadily over the past five years from 7 per cent to minus 1 per cent last year, according to data from OC&C, the consultancy.
Nestlé’s organic sales growth slowed from 6 per cent in 2012 to 3.2 per cent last year, its lowest rate in two decades. However, Mr Schneider revealed growth would have been 3.4 per cent if its struggling skincare division had been excluded. The unit was being “aggressively right sized” by a new management team, he said.
Mr Schneider identified coffee, petcare, infant nutrition and bottled water as future high-growth sectors. Nestlé would also build on its strong position in emerging markets and pursue growth in consumer healthcare. Another investor in London said: “I agree with his approach far more than that of Kraft Heinz.”
Nestlé’s share price ended the day 1.8 per cent higher at SFr82.55.
Aryzta confirms looking to sell 49% Picard Surgeles stake but needs approval from Lion Capital
Aryzta [VTX:ARYN], the listed Swiss food company, confirmed it is looking to sell its 49%shareholding in the French frozen food retailer Picard Surgeles, French daily L’Agefi reported. The report cited Aryzta chairman Gary McGann, speaking during the company’s annual results presentation, and saying that Aryzta's aim was to sell the stake but it may not do so without approval from its partner in Picard. Picard is majority-owned by investment fund Lion Capital, the report noted.
Aryzta said during the conference that the strategic direction of the group was defined, with a refocusing on core B2B Frozen Bakery and European Food Solutions businesses.
Atlantia mulling short offer period for Abertis - sources
26 SEP 2017
Atlantia [BIT:ATL] could opt for a relatively short offer period for its unsolicited takeover for Abertis[BIT:ATL], according to two sources and a lawyer familiar with the situation. A short timetable would allow Atlantia to complete the deal as soon as possible, the two sources agreed.
Under Spanish law, offers can technically last between 15 and 70 days, the lawyer explained.
The best approach for the Italian infrastructure company could be indeed to wrap up its offer in around two weeks, mainly to fend off a potential competing bid from ACS [BME:ACS], the lawyer suggested. The offer period could still be extended if needed, he noted.
However, it could take some time to explain to investors a deal that is large and complex, a third source warned, adding that the parties could take more time to do that.
The approval of the offer document by Spain’s National Securities Market Exchange (CMNV) is likely to slip into October. It was originally expected to be approved in September, as reported. It’s optimistic to foresee a greenlight in September at this stage, he said.
The offer period is expected to start a day after the publication of the prospectus in local newspapers, according to the lawyer.
Atlantia is offering a EUR 16.5 per share cash offer for 100% of Abertis share capital. As an alternative to the cash bid, it is offering 0.696 shares of the Italian company for each Abertis shares, subject to certain conditions.
Atlantia declined to comment.
Sadiq Khan suggests Labour may back second referendum on Brexit
Mayor raises prospect of Labour’s next manifesto offering voters the chance to reverse the Brexit referendum verdict
London Mayor Sadiq Khan has suggested Labour may back a second referendum on the UK’s withdrawal from the European Union.
Mr Khan hinted he would press for a commitment to a further national vote – on whether to accept any Brexit deal reached – to be included in the next election manifesto.
The vow came as Kezia Dugdale, Labour’s former leader in Scotland, said the public had the right to have its say in a second referendum.
Meanwhile, Andrew Gwynne, Labour’s election chief, and a Corbyn ally, refused to rule out a further vote, saying: “Who knows where we will be at the end of this process?”
At Labour’s conference, there were also claims that John McDonnell, the Shadow Chancellor, had left open the prospect of a further referendum, at a private meeting with business leaders.
Mr Corbyn has tried to keep a lid on Labour’s Brexit divisions, sparking fury when Labour MPs were denied a vote on permanent membership of the single market.
But Mr Khan said it was “possible” Labour’s next manifesto would offer voters the chance to reverse the Brexit referendum verdict.
“I’d have my tuppence worth as Mayor of London,” he told the London Evening Standard, making clear he feared no Brexit deal would be struck that would be good enough to accept without offering a second referendum.
“I so far have not been persuaded how this Government has a plan that works for our country,” Mr Khan added.
A previous version of this story stated Mr Khan had explicitly called for a second referendum on the UK’s withdrawal from the European Union, but the Mayor’s team has insisted this was not the case.
Meanwhile, Ms Dugdale said: “Brexit is spiralling out of control and out of the interests of working people.
“That’s why we the people should take back control with a final vote on the deal,” she told Glasgow’s Daily Record newspaper.
On Sunday, Mr Gwynne warned his party that Brexit divisions could tear Labour apart, as he urged activists and MPs to settle their disagreements in a “comradely fashion”.
Over the summer, Labour negotiated a united policy to stay in the single market for a transitional period of between two and four years, but with no mention of a second referendum.
Today, Mr Gwynne said there would have to be a “very serious discussion” about a referendum if the Prime Minister failed to achieve an acceptable deal in the Brussels talks.
“Certainly Parliament, at the very least, wants to have that final say over what deal Theresa May comes back with,” Mr Gwynne added.
Before the June election, Mr Corbyn appeared to flirt with offering a referendum on the Brexit deal, before eventually stepping back. Both the Liberal Democrats and the Greens say they would offer one.
But, on Monday, a survey revealed a narrow majority of Labour voters now supports a further referendum, with an option for Britain stay in the EU.
One person who attended Mr McDonnell’s meeting with business leaders said they had left the event with the impression that another vote was a possibility.
However, a source close to the Shadow Chancellor told the Evening Standard he had not given any backing to the idea of a second referendum.