Daily Media Briefing

Daily Media Briefing


Posted in: Corporate Reputation, Daily Media Briefing, Energy, Supply Chain, Tax

Top Stories

March 12, 2018


Multinationals paying less tax despite curb on avoidance

Big multinationals are paying significantly lower tax rates than before the 2008 financial crisis, according to analysis that shows that a decade of government efforts to cut deficits and reform taxes has left the corporate world largely unscathed. The FT examined the tax rates paid by the world’s 10 biggest public companies in each of nine sectors. The results show that since the financial crisis, average reported effective tax rates have fallen around 13 per cent for the largest technology and industrial companies. They have been broadly flat in the health, consumer staples and materials sectors. Overall, the longer-term trend is even more pronounced, with effective reported corporate tax rates falling nearly one-third since 2000, from 34 per cent to 24 per cent. (Financial Times*)

Corporate Reputation

S&P accused of weakening ratings model to win business in landmark Australian lawsuit

Ratings agency Standard and Poor’s weakened its risk assessment criteria to win business and turn out high ratings on opaque debt products that started to unwind during the global financial crisis, an Australian court heard on Monday. The US-based ratings agency is being sued for at least A$190 million (US$150 million) by two local governments and two pension funds in Australia, which lost money on debt products when the US subprime mortgage crisis hit a decade ago. The class action suit, funded by Singapore-based Litigation Capital Partners, could expose S&P to lawsuits from other investors if the agency is found to have knowingly turned out unreliable ratings. (Reuters)

Supply Chain

KFC reverts to old chicken supplier after massive shortage led to forced store closures

KFC has said that it is going back to its former supplier for more than a third of its UK restaurants, after a switch caused a massive chicken shortage which forced hundreds of outlets to temporarily shut their doors. The fast-food chain said that it was reverting to Bidvest Logistics after having switched to DHL and its partner QSL for around 350 restaurants. “We’ve been working hard to resolve the present situation with QSL and DHL. This decision will ease pressure at DHL’s Rugby depot, to help get our restaurants back to normal as quickly as possible,” KFC said in a statement. (Independent)


Macron pledges €700 million for new solar projects in developing countries

French President Emmanuel Macron has pledged hundreds of millions of dollars for solar projects in developing countries, as world leaders met in India to promote greater investment in renewable energy. Macron, who in December warned that the global shift to a green energy future was too slow, said France would extend an extra €700 million through loans and donations by 2022 for solar projects in emerging economies. France had already committed €300 million to the initiative when it co-founded with India a global alliance in 2015 to unlock new cash for solar projects in sunny yet poor nations. “We need to remove all obstacles and scale up,” Macron said at the launch of the International Solar Alliance in New Delhi. (AFP)


Eon to acquire Innogy in €43 billion deal with RWE

Eon, the German utility, has unveiled a complex €43 billion deal to acquire Innogy, the renewable energy business, from its controlling shareholder RWE as well as a series of assets swaps that will dramatically remake Germany’s energy sector. Under the terms of the deal, Eon will become a company purely focused on providing energy networks and services to retail customers, while RWE will acquire Eon and Innogy’s renewables businesses and take a 16.7 per cent stake in Eon. In addition to the renewables businesses, RWE will receive Eon’s minority stakes in two RWE-operated nuclear plants, Innogy’s gas storage business and its stakes in the Austrian energy supplier Kelag. In return, RWE will pay Eon €1.5 billion in cash. (Financial Times*)


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Image Source: Kuraymat by Green Prophet on Flickr. CC BY 2.0.