Author: Mei Ling Tan

  • Global Banks Vie for Citi’s Asia Consumer Business

    Global Banks Vie for Citi’s Asia Consumer Business

    Two of Singapore’s «big three» lenders are said to be interested in acquiring parts of Citi’s consumer business, which is downsizing worldwide.

    DBS Group, OCBC, Mitsubishi UFJ Financial Group (MUFG) and Standard Chartered intend to bid parts of the bank’s consumer banking portfolios and brances in Asia, citing sources with direct knowledge of the matter.

    The sale process will start within a couple of weeks, the sources said. The businesses Citi is exiting had $82 billion in total assets and were allocated $7 billion in tangible common equity last year, Citi said.

    Last week, Citi announced its intention to exit its consumer banking business in 13 markets, 10 of which are in Asia: Australia, China, India, Indonesia, Korea, Malaysia, the Philippines, Taiwan, Thailand, and Vietnam.

    The bank said it intends to «double down on wealth» as it focuses its consumer banking franchise in Asia and EMEA solely through its four wealth centers: Singapore, Hong Kong, UAE, and London.

    DBS, which operates a fully owned subsidiary in India, is said to be interested in Citi’s business there, which includes retail deposits, mortgages and credit cards. Standard Chartered and local lenders Kotak Mahindra Bank and Axis Bank are also said to be interested, which SBI Cards and Payment Services is eyeing Citi’s credit card portfolio there.

    DBS has always been open to exploring sensible bolt-on opportunities in markets where we have a consumer banking franchise (China, India, Indonesia and Taiwan), a bank spokesperson said.

  • Tesla To Launch Self Inspection Over Services In China

    Tesla To Launch Self Inspection Over Services In China

    U.S. electric vehicle maker Tesla Inc will launch self-inspection and address customer service issues in China, it said on Weibo late on Tuesday.

    The statement comes after an unhappy customer clambered onto a Tesla car at the Shanghai Auto Show on Monday over a dispute with the company, creating a social media stir and criticism of Tesla from state media.

  • Tesla Drives On Autopilot Through A Regulatory Grey Zone

    Tesla Drives On Autopilot Through A Regulatory Grey Zone

    The fatal crash of a Tesla with no one apparently behind the wheel has cast a new light on the safety of semi-autonomous vehicles and the nebulous U.S. regulatory terrain they navigate. Police in Harris County, Texas, said a Tesla Model S smashed into a tree on Saturday at high speed after failing to negotiate a bend and burst into flames, killing one occupant found in the front passenger seat and the owner in the back seat.

    Tesla Chief Executive Elon Musk tweeted on Monday that preliminary data downloaded by Tesla indicate the vehicle was not operating on Autopilot, and was not part of the automaker’s “Full Self-Driving” (FSD) system.

    U.S. federal road safety authority has yet to issue specific regulations or performance standards for semi-autonomous systems such as Autopilot, or fully autonomous vehicles (AVs).

    Tesla’s Autopilot and FSD, as well as the growing number of similar semi-autonomous driving functions in cars made by other automakers, present a challenge to officials responsible for motor vehicle and highway safety.

    U.S. federal road safety authority, the National Highway Traffic Safety Administration (NHTSA), has yet to issue specific regulations or performance standards for semi-autonomous systems such as Autopilot, or fully autonomous vehicles (AVs).

    There are no NHTSA rules requiring carmakers to ensure systems are used as intended or to stop drivers misusing them. The only significant federal limitation is that vehicles have steering wheels and human controls required under federal rules.

    With no performance or technical standards, systems such as Autopilot inhabit a regulatory grey area.

    The Texas crash follows a string of crashes involving Tesla cars being driven on Autopilot, its partially automated driving system which performs a range of functions such as helping drivers stay in lanes and steer on highways.

    Tesla has also rolled out what it describes as a “beta” version of its FSD system to about 2,000 customers since October, effectively allowing them to test how well it works on public roads.

    Harris County police are now seeking a search warrant for the Tesla data and said witnesses told them the victims intended to test the car’s automated driving.

    Adding to the regulatory confusion is that traditionally NHTSA regulates vehicle safety while departments of motor vehicles (DMVs) in individual states oversee drivers.

    When it comes to semi-autonomous functions, it may not be apparent whether the onboard computer or the driver are controlling the car, or if the supervision is shared, says the U.S. National Transportation Safety Board (NTSB).

    California has introduced AV regulations but they only apply to cars equipped with technology that can perform the dynamic driving task without the active physical control or monitoring of a human operator, the state’s DMV told Reuters.

    It said Tesla’s full self-driving system does not yet meet those standards and is considered a type of Advance Driver Assistance System that it does not regulate.

    That leaves Tesla’s Autopilot and its FSD system operating in regulatory limbo in California as the automaker rolls out new versions of the systems for its customers to test.

    NHTSA, the federal body responsible for vehicle safety, said this week it has opened 28 investigations into crashes of Tesla vehicles, 24 of which remain active, and at least four, including the fatal Texas accident, occurred since March.

    NHTSA has repeatedly argued that its broad authority to demand automakers recall any vehicle that poses an unreasonable safety risk is sufficient to address driver assistance systems.

    So far, NHTSA has not taken any enforcement action against Tesla’s advanced driving systems.

    White House spokeswoman Jen Psaki said NHTSA is “actively engaged with Tesla and local law enforcement” on the Texas crash.

    The NTSB, a U.S. government agency charged with investigating road accidents, has criticized NHTSA’s hands-off approach to regulating cars with self-driving features and AVs.

    “NHTSA refuses to take action for vehicles termed as having partial, or lower level, automation, and continues to wait for higher levels of automation before requiring that AV systems meet minimum national standards,” NTSB Chairman Robert Sumwalt wrote in a Feb. 1 letter to NHTSA.

    “Because NHTSA has put in place no requirements, manufacturers can operate and test vehicles virtually anywhere, even if the location exceeds the AV control systems limitations,” the letter said.

    REVIEWING REGULATIONS

    NHTSA told Reuters that with a new administration in place, it was reviewing regulations around AVs and welcomed the NTSB’s input as it advanced policies on automated driving systems.

    It said the most advanced vehicle technologies on sale required a fully attentive human driver at all times.

    “Abusing these technologies is, at a minimum, distracted driving. Every State in the nation holds the driver responsible for the safe operation of the vehicle,” NHTSA told Reuters.

    NTSB also says NHTSA does not have any method to verify whether carmakers have adopted system safeguards. For example, there are no federal regulations requiring drivers to touch the steering wheel within a specific time frame.

    “NHTSA is drafting rules on autonomous vehicles, but it has been slow to regulate semi-autonomous vehicles,” said Bryant Walker Smith, a law professor at the University of South Carolina. “There is a growing awareness that they deserve more scrutiny priority and regulatory action.”

    New York has a law requiring drivers to keep at least one hand on the wheel at all times but no other states have legislation that could prevent the use of semi-autonomous cars.

    When it comes to AVs, 35 states have enacted legislation or state governors have signed executive orders covering AVs, according to the National Conference of State Legislatures.

    Such rules allow companies such as Alphabet’s Google and General Motors, among others, to test their Waymo and Cruise vehicles on public roads.

    But regulations differ by state.

    AV regulations in Texas state that vehicles must comply with NHTSA processes, though there are no such federal regulations. The Texas Department of Public Safety, the regulator charged with overseeing AVs, did not respond to a request for comment.

    Arizona’s transport department requires companies to submit regular filings to verify, among other things, that vehicles can operate safely if the autonomous technology fails.

    While most automakers offer vehicles with various forms of assisted driving, there are no fully autonomous vehicles for sale to customers in the United States.

    RED FLAGS

    Concerns about the safety of autonomous driving technology, however, have been mounting in recent years and Tesla has warned about its limitations.

    In February 2020, Tesla’s director of autonomous driving technology, Andrej Karpathy, identified a challenge for its Autopilot system: how to recognize when a parked police car’s emergency flashing lights are turned on.

    “This is an example of a new task we would like to know about,” Karpathy said at a conference during a talk about Tesla’s effort to deliver FSD technology.

    In just over a year since then, Tesla vehicles crashed into police cars parked on roads on four separate occasions and since 2016 at least three Tesla vehicles operating on Autopilot have been in fatal crashes.

    Tesla says it has used 1 million cars on the road to collect image data and improve Autopilot, using machine learning and artificial intelligence.

    U.S. safety regulators, police and local government have investigated all four incidents, officials told Reuters.

    At least three of the cars were on Autopilot, police said. In one of the cases, a doctor was watching a movie on a phone when his vehicle rammed into a police trooper in North Carolina.

    Tesla did not immediately respond to a request for comment.

    Accidents and investigations have not slowed Musk’s drive to promote Tesla cars as capable of driving themselves.

    In a recent Tweet, Musk said Tesla is “almost ready with FSD Beta V9.0. Step change improvement is massive, especially for weird corner cases & bad weather. Pure vision, no radar.”

    Tesla also says it has used 1 million cars on the road to collect image data and improve Autopilot, using machine learning and artificial intelligence.

    Tesla’s Karpathy said he has ridden in his Tesla for 20 minutes to get coffee in Palo Alto with no intervention.

    “It is not a perfect system but it is getting there,” he said in a “Robot Brains” podcast in March. “I definitely keep my hands on the wheel.”

  • Barry Callebaut names new MD for Australia and New Zealand

    Barry Callebaut names new MD for Australia and New Zealand

    Chocolate and cocoa products manufacturer Barry Callebaut Group has named Denis Convert as its new MD for ANZ.

    Convert will start his new role on August 1 and will be based in the GKC Foods office in Melbourne. As MD, he will oversee operations and sales teams in growing sales volume and expanding Barry Callebaut’s footprint in the region.

    “The appointment will steer Barry Callebaut’s further growth in Australia and New Zealand,” the company said in a statement.

    Barry Callebaut bought GKC Foods last year.

    Having joined the group in 2014 as VP of gourmet for Asia Pacific, Convert led sales and marketing teams in the region. Prior to Barry Callebaut, he held senior roles at Mars in Europe for 14 years.

  • Estée Lauder names Kōki as new Global Brand Ambassador

    Estée Lauder names Kōki as new Global Brand Ambassador

    The Estée Lauder Companies has named Japanese model Kōki as the newest global brand ambassador for its flagship Estée Lauder brand.

    She will feature across the brand’s digital, television, in-store, and print media, in domestic and travel retail markets, beginning with a makeup campaign in April. Kōki will also appear in all of Estée Lauder’s digital campaigns beginning in the Autumn.

    Kōki — real name Mitsuki Kimura — was born and raised in Tokyo. She began her modeling career in 2018 and appeared on the covers of several high-profile fashion magazines in Japan and in the wider Asia Pacific region. This includes Harper’s Bazaar Hong Kong, ELLE Japan, ELLE Hong Kong, Marie Claire Japan and InStyle China among others.

    In 2018, Kōki won the Elle Cinema Rising Star Award. The following year, she made her runway debut at the Chanel Cruise Collection fashion show. She is also currently serving as a brand ambassador for other leading luxury brands such as Bvlgari, Coach, and Louis Vuitton.

    Kōki joins a stellar roster of Estée Lauder brand ambassadors which include South Sudanese Model Anok Yai, Italian model/actress/socialite Bianca Brandolini D’Adda, American model Carolyn Murphy, Indian model Diana Penty, American models Grace Elizabeth and Karlie Kloss, Chinese Actress Yang Mi and recently-appointed Cuban actress Ana de Armas.

    “Kōki brings a fresh energy to the Estée Lauder brand,” commented The Estée Lauder Companies Group President and Estée Lauder and AERIN Global Brand President Stéphane de La Faverie. “We are excited to amplify her rising star power to connect our brand with a new generation of consumers in Japan and around the world while continuing the brand’s legacy of celebrating women across all backgrounds, ages, and ethnicities.”

    Commenting on her role, Kōki said: “It is a dream come true to join the Estée Lauder brand. It is such an iconic brand that is loved by so many women around the world. I am honored and grateful to be a part of it.”

  • Naiise founder confirms company’s liquidation

    Naiise founder confirms company’s liquidation

    Troubled home-grown retailer Naiise has gone into liquidation, after closing its last store last weekend following years of late payments to its vendors. The company’s founder, Dennis Tay, will also be filing for personal bankruptcy. In a Facebook post on Thursday, Mr. Tay said he had “exhausted (his) savings and borrowed heavily from banks” to keep the business afloat and repay Naiise’s vendors.

    He also signed personal guarantees for the loans, “because as long as Naiise was still a going concern, there was a chance that Naiise would be able to repay, however slowly”.

    “Unfortunately, I am now out of time and options,” Mr. Tay wrote, adding that it has been “an extremely difficult two years” and that the last few weeks were “the darkest of his life”.

    Last Sunday, Naiise closed its Jewel Changi Airport store – its last and largest in Singapore, amid an ongoing struggle to pay its vendors.

    It owes vendors sums ranging from hundreds of dollars to five-digit figures for selling their stocks on a consignment basis and has reportedly defaulted on payments since as early as 2016.

    Naiise was also fined S$8,000 last year for late payments of CPF contributions for employees. Currently, it has been charged with another offence under the Central Provident Fund Act, with the case slated for hearing next week.

    Mr. Tay, who started Naiise in 2013, wrote in his Facebook post: “As a business owner, the blame for Naiise’s demise is mine alone.

    “I’m sorry to the employees I let go. They helped build Naiise and I consider many of them friends. To those who are owed money, I am sorry I failed you all, and for all the inconvenience and distress this has caused. Apologies also to our marketplace sellers for shuttering operations so abruptly.”

  • Subway Australia launches 24-seven trading

    Subway Australia launches 24-seven trading

    Fast-food chain Subway Australia has unveiled a 24 hours express pick-up service in Bald Hills, Brisbane, ahead of a broader national rollout.

    Customers can order their foods via the app or using a third-party provider and collect their purchases at an express pick-up window.

    “Over the past year, through Covid we have seen a change in the way people are eating Subway,” said Subway country director Geoff Cockerill.

    “More people are ordering through third-party delivery providers than ever before – and more people are choosing to place express-pick-up orders. With shift workers, more remote working, and added delivery options, Subway is proving a popular choice for late night and early morning orders.”

    After testing it at the Bald Hills store, Subway will roll out more 24-hour pick-up windows across Australia.

  • Online supermarket concept Supie to launch in Auckland

    Online supermarket concept Supie to launch in Auckland

    Online supermarket Supie is set to open its virtual doors in Auckland next month, aiming to change the way Kiwis shop for groceries.

    The membership-based supermarket will house more than 2500 products sourced from local growers and food producers. Supie also offers sustainable delivery where all packaging is recyclable or reusable. The brand implements zero-waste ordering methods which ensure its customers receive the freshest produce.

    “The majority of the time, when you order your product is still in the ground,” the company says on its website.

    Founded by Sarah Balle, Supie is expected to compete directly with traditional supermarkets, providing a smart and more accessible solution for Kiwis during the post-Covid era.

    “We’re a small team of passionate Kiwis with big ambitions to make a true impact,” said Saral Balle. “We believe food is the most powerful force for change.”

  • James Reyne sings praises of new Coopers Australian IPA

    James Reyne sings praises of new Coopers Australian IPA

    Brewer Coopers has rolled out a limited release Australian IPA in kegs and 375ml can format, backed by a marketing campaign fronted by legendary Australian singer James Reyne.

    Coopers Australian IPA is made with local hops with citrus notes such as mandarin and orange as well as piney and passionfruit characteristics, according to the brewer. It has an ABV of 6.5 percent and a bitterness level of 40 IBU.

    “We’ve come up with a great-tasting Australian IPA that will suit any occasion,” said Coopers MD and chief brewer, Dr Tim Cooper. “We’re very mindful about when to bring out a new beer and an enormous amount of time goes into getting it right.”

    The campaign featuring Reyne was filmed at the Silverton Hotel in Broken Hill. The singer will also perform at several trade events in April.

    Reyne previously participated in the Coopers Live, Loud and Local series which was launched last year to support pubs and musicians recovering from the Covid-19 shutdowns.

    Coopers Australian IPA will be sold at bottle shops from late April.

  • Coca-Cola Amatil shareholders approve European takeover

    Coca-Cola Amatil shareholders approve European takeover

    Shareholders at Coca-Cola Amatil have voted “overwhelmingly” to approve Coca-Cola European Partner’s $13.50 per share takeover offer. The vote was held at 10 am on Friday, April 16, and saw 97.6 percent of shares proxy vote in support of the takeover – representing about 62 percent of total shareholders in CCA.

    Only 0.9 percent of votes were against the takeover.

    “Today is a significant day in the 117-year history of Coca-Cola Amatil,” said chairman Ilana Atlas.

    “I am excited by the possibilities that lie ahead for Coca-Cola Amatil’s future, and know I speak on behalf of the board when I say that it has been a privilege to be part of the Coca-Cola Amatil journey.”

    The takeover means CCA’s brands, which include Coca-Cola, Mount Franklin, Pump, Goulburn Valley, Monster Energy, Barista Bros, Blue Moon and Rekorderlig will now be owned and operated out of Europe.

    The takeover also means the Atlanta-based Coca-Cola Company will see its financial interest in CCA vanish.

    Shares in CCA fell after the vote, as it became clear shareholders would be receiving the “best and final” offer from CCEP.

  • Covid-led baking craze inspires new flours from McKenzie’s Foods

    Covid-led baking craze inspires new flours from McKenzie’s Foods

    Australian food maker McKenzie’s has met the demand of consumers after seeing more Aussies baking and cooking at home since the Covid-19 pandemic arrived. The company has expanded its single alternative flour range and unveiled a new special purpose flour range.

    “We’re proud to be able to offer such a large variety of flours to our consumers and inspire them to experiment in the kitchen and unlock the power of alternative flours,” said McKenzie’s marketing manager, Bianca Piscopo.

    The alternative blended flour range includes Bread & Pizza Flour, Cake Flour, Cookie Flour, and Pancake Flour. The Bread & Pizza Flour has plain, oat and wholemeal spelt flour for bread and pizzas. The Cake Flour blend is made with low-protein plain flour and cornflour for cakes, cupcakes, and biscuits. The Cookie Flour contains chickpea, plain and oat flour for cookies. Pancake Flour is made with plain, oat, and rice flour.

    While McKenzie’s single-source alternative flour range now has Almond Flour, Brown Rice Flour, and Yellow Pea Flour. The Yellow Pea and Almond versions are a good source of fiber and protein while the Brown Rice Flour contains whole grains.

    The Almond Flour and Brown Rice Flour are gluten-free which can be used for cakes, biscuits, and bread. The Yellow Pea Flour has an earthy flavor and is ideal for baking. They are made from Australian ingredients.

    McKenzie’s alternative and special purpose flours are sold at Woolworths.

  • McDonald’s implements global inclusive workplace initiative

    McDonald’s implements global inclusive workplace initiative

    McDonald’s has unveiled an initiative to foster a safe and inclusive workplace it calls Global Brand Standards.

    The policy will focus on four main areas: harassment, discrimination, and retaliation prevention; workplace violence prevention; restaurant employee feedback; and health and safety. The company says the standards have been set to further ensure physical and psychological safety for its employees and customers.

    “There are no shortcuts to ensuring that people feel safe, respected, and included at a McDonald’s restaurant,” said Chris Kempczinski, president and CEO of McDonald’s. “Our new Global Brand Standards reinforce our commitment to living our values such that at every interaction, everyone is welcome, comfortable, and safe.”

    These standards will be implemented across 39,000 McDonald’s restaurants in more than 100 countries. From January, restaurants will be assessed and held accountable in accordance with the applicable McDonald’s market’s business evaluation processes. Training and reporting mechanisms will be established.

    McDonald’s said it will work closely with independent and third-party experts to support the implementation of the standards for franchisees.

    “McDonald’s has a responsibility and an opportunity to use our tremendous scale to drive change globally,” said Reto Egger, speaker group chair of the European Franchisee Leadership Group (EFLG) and franchise owner.

    “These refreshed standards and heightened measures of accountability are central to our culture, our business goals and the need in our society to foster more respect, safety, and inclusion.”

  • Walmart leads US$2.75bn investment in self-driving car startup Cruise

    Walmart leads US$2.75bn investment in self-driving car startup Cruise

    Walmart has led a US$2.75 billion investment into self-driving carmaker Cruise, valuing the company at $30 billion.

    The investment marks increasing faith in the concept by the international retail giant which has already partnered with Cruise in a trial delivery service in Scottsdale, Arizona, announced last November.

    “Over the years we’ve been doing a lot to learn more about the role autonomous vehicles can play in retail, and we’ve seen enough to know it’s no longer a question of if they’ll be scaled, but when,” said John Furner, president, and CEO at Walmart US, explaining the investment.

    He said the new funds would help San Francisco-based Cruise work with Walmart to achieve its goal of developing a last-mile delivery ecosystem “that’s fast, low-cost and scalable”.

    Cruise’s all-electric fleet of self-driving cars – based on the Chevrolet Bolt EV – has already attracted substantial investment from Microsoft, General Motors and Honda.

    Furner said Walmart has been impressed by Cruise’s “differentiated business model” since the two companies began their pilot project last year, its unique technology, and unmatched driverless testing. “We also value our shared commitment to a zero-emissions future.

    “As delivery has become a staple in our customers’ lives, we’re focused on growing our last-mile ecosystem in a way that’s beneficial for everyone – customers, business, and the planet. With their all-electric fleet powered by 100-per-cent renewable energy, Cruise is a natural partner as we work to take collective action on climate change,” Furner said.

    “We’re doing this not only in our own operations where we are targeting zero emissions by 2040 and have set a goal to be powered by 100-per-cent renewable energy by 2035, but also throughout the supply chain and our environmental initiative, Project Gigaton, one of the largest private-sector consortiums for climate action.”

    Meanwhile, Cruise says it plans to begin deploying a limited number of its Origin vehicles for ride-hailing services in Dubai from 2023, its first overseas commercial service.

    “We are focused on our path to commercialization right now but the IPOs happening in the space right now are a great indication of the strength of the industry and the opportunity self-driving presents,” a Cruise spokeswoman told Reuters in a statement.

  • Scandal-plagued Luckin Coffee secures US$250 million lifeline

    Scandal-plagued Luckin Coffee secures US$250 million lifeline

    Luckin Coffee, the scandal-plagued Chinese coffee shop chain, secured a $260 million investment from existing shareholders Centurium Capital and Joy Capital. It also replaced its independent auditor.

    This will help Luckin satisfy a $180 million settlement struck last year with the SEC, which had accused Luckin of faking retail sales figures. The company went public on the Nasdaq less than two years ago at a $4.3 billion valuation but was later delisted because of the accounting fraud.

    The investment is structured as convertible preferred stock, with an option for Centurium and Joy to invest an additional $150 million.

    The bottom line, Luckin was supposed to be China’s answer to Starbucks, but so far has been closer to China’s answer to Enron.

  • StanChart Expands Hiring Efforts in Hong Kong

    StanChart Expands Hiring Efforts in Hong Kong

    Standard Chartered plans to hire about 400 staff in Hong Kong this year as part of the ongoing expansion of its retail baking and wealth management business.

    The Asia-focused lender’s hiring plans are part of its strategy to tap demand from affluent customers for wealth planning, according to a report citing Hong Kong head of consumer, private, and business banking Lay Choo Ong.

    In addition to hiring, Standard Chartered is also planning to invest $26 million over the next three years to revamp its branches in the city.

    The bank will look to add, relocate and close various branches with the aim of maintaining 70 in the city, according to a previous announcement by Hong Kong CEO Mary Huen.

    Although branch visits at Standard Chartered fell 25 percent during the pandemic, the bank believes that demand remains for customers seeking to discuss more complex financial needs.

    It is planning to open its second «Priority Private Center» in the city this year as well as three green branches for paperless services, likely in the third or fourth quarter, as part of a pilot project.

    According to Ong, assets under management in Hong Kong-registered double-digit growth in the first quarter while wealth management fund flows doubled the annual average in 2020.