Sainsbury, Bloomberg, Walmart discussed on Bloomberg Daybreak
Bloomberg opinion editor Jennifer Ryan is with us from our London bureau, and Jen I love the first line of David Fickling piece this morning on Glencore at to Glencore. He's focused on a potential dark cloud for the coal market from the world's biggest commodity trader. Yeah. I mean, it was really only a few months ago that it was promoting coal as a viable part of global emissions reducing plans. I mean, whatever you think about that strategy at any rate, it's not change in. So now it's promising to cap production for the foreseeable future at around current levels, which is one hundred and forty five metric tons a year. I mean, the move is pretty striking because it makes up the biggest slice of Glen courts profits in two thousand eighteen and. The company is actually one of the few diversified Niners. That is proudly committed to coal. Yeah. So what's behind this sudden shift? Well, one factor. Must surely is that major investors are really putting more and more pressure on companies to back away from the dirtiest emissions. So I mean, just to give you some numbers here institutions with six point two trillion dollars in assets have already committed to diversify away from fossil fuels and this is figuring into the chair. So does this mean that Glencore is getting out of coal completely not at all? I mean, thanks to its investment in Rio. Tinto's minds north of Sydney in two thousand seventeen it's still likely to be turning coal out. For decades, the plan put cap could be maintained well into the twenty thirties merely just by building out. Its current undeveloped projects still Fickling says is that the announcement gives us another clue as to how cold could conceivably decline in the coming years. It's going to come to a sudden end where prices have traded set forth permanently below marginal cost. But instead what we're more likely to see his death by. Thousand cuts. Yeah. I guess we can get into the question of whether Cole is a viable part of global emissions reduction plans to leave that for another day. But let's move onto the Sainsbury news this morning. We've been talking about the shares of one of Britain's biggest grossers plummeting this morning on word. That regulators could block Sainsbury's deal to buy WalMart's UK subsidiary entirely Andrew fell focused on that this morning. What's she writing about? Just to give you a bit of a recap this nine billion dollar deal was announced back in April, and the whole rationale of it is for Britain's grocers to join forces to cope with the changing retail environment. I mean, this is as as companies are in the United States as well. Saints along with Tesco and more center having to cope with the encouragement of all the lead all the German. No frills supermarkets, and there's just continuing to gobble up all of the market share in the sector all the sales growth. I should really say. Now, the the competition authority recognized that aldean legal do compete, but not to the extent of the remainder of the of Saint sprays. Biggest competitors. And so from this perspective, the remedies the regulator, we're going to require for the delta co through look, really, just incredibly harsh. And it looks like, you know, they've got sculpted blocking entirely. Yeah. We've heard from Sainsbury CEO calling the agency's finding outrageous. What is Andrea think of that contention? She says that actually really has some merits. I mean. All the legal really have been snapping at the heels of all of Britain's gross this for quite some times. More to the point is that the CNN is finding really looks like a considerable flip fought from its latest ruling in the industry in two thousand seventeen it allowed tests go to purchase Booker and wave that transaction through without demanding really any concessions that looked in unduly lenient sort of ruling there. And so now injuries saying that Sainsbury should just walk away from this deal. And if it goes ahead and does that where's that leave? Walmart Sainsbury's performance has really been disappointing. Since the merger was an absent fell said thinks that since we're really needs to do its focused very strongly on its underlying business. And so it shouldn't get involved with trying to improve the terms of this transaction or try to do any further battle with the since we clearly has the most salutes here, but for WalMart. There are other options it could potentially persuade private equity to consider a purchase. But that's not the case for Saint spray the prospects for by out. There are a lot less clear cut. Although. Could potentially be a tempting opportunity for the likes of Amazon. So as far as Saint spray, the has given the grocer away out of the St. L and fell said says that the CEO should just go ahead and take it. All right and just checking Sainsburys shares right now they're down to sixteen percent. In london. Bloomberg opinion editor Jennifer, Ryan, thanks as always could read more on these and other stories from Bloomberg opinion at Bloomberg dot com slash opinion, on the Bloomberg terminal customers can type in Opie. I n go on the search bar. Karen? Thanks nathan. It's coming up to five fifty four on Wall Street. It's time for Bloomberg law report. Let's get to the legal stories where watching this morning with Steve Potisk in the Bloomberg ninety nine one Washington newsroom..