More Pressure on Weaker Sovereigns in Europe: Kraemer
Moritz Kraemer, chief economist at LBBW, discusses the outlook for European bonds as nations look to fund increased defense spending. "This will heighten the pressure on sort of weaker sovereigns in the euro area," Kraemer says. "Not so much from the rating agencies, but from the markets," he says on Bloomberg Television. (Source: Bloomberg)
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Associated Press
5 minutes ago
- Associated Press
Italians head to polls in referendum on citizenship and labor, but vote risks sinking on low turnout
ROME (AP) — Italians headed to the polls Monday on the second and final day of referendums that would make it easier for children born in Italy to foreigners to obtain citizenship, and on providing more job protections. But partial data showed a low turnout, well below the required 50% plus one threshold, risking to invalidate the vote. Campaigners for the change in the citizenship law say it will help second-generation Italians born in the country to non- European Union parents better integrate into a culture they already see as theirs. Partial data from Italy's Interior Ministry published at 2100 GMT on Sunday showed that national turnout stood at 22.7%, just over half of the 41% registered at the same time of the day in the latest comparable referendum held in 2011. The polling stations close later Monday at 1300 GMT. The new rules, if passed, could affect about 2.5 million foreign nationals who still struggle to be recognized as citizens. The measures were proposed by Italy's main union and left-wing opposition parties. Premier Giorgia Meloni showed up at the polls on Sunday evening but didn't cast a ballot — an action widely criticized by the left as antidemocratic, since it won't contribute to reaching the necessary threshold to make the vote valid. 'While some members of her ruling coalition have openly called for abstention, Meloni has opted for a more subtle approach,' said analyst Wolfango Piccoli of the Teneo consultancy based in London. 'It's yet another example of her trademark fence-sitting.'' Rights at stake Supporters say this reform would bring Italy's citizenship law in line with many other European countries, promoting greater social integration for long-term residents. It would also allow faster access to civil and political rights, such as the right to vote, eligibility for public employment and freedom of movement within the EU. 'The real drama is that neither people who will vote 'yes' nor those who intend to vote 'no' or abstain have an idea of what (an) ordeal children born from foreigners have to face in this country to obtain a residence permit,' said Selam Tesfaye, an activist and campaigner with the Milan-based human rights group Il Cantiere. Activists and opposition parties also denounced the lack of public debate on the measures, accusing the governing center-right coalition of trying to dampen interest in sensitive issues that directly impact immigrants and workers. In May, Italy's AGCOM communications authority lodged a complaint against RAI state television and other broadcasters over a lack of adequate and balanced coverage. Opinion polls published in mid-May showed that only 46% of Italians were aware of the issues driving the referendums. Turnout projections were even weaker for a vote scheduled for the first weekend of Italy's school holidays, at around 35% of around 50 million electors, well below the required quorum. 'Many believe that the referendum institution should be reviewed in light of the high levels of abstention (that) emerged in recent elections and the turnout threshold should be lowered,' said Lorenzo Pregliasco, political analyst and pollster at YouTrend. Some analysts note, however, that the center-left opposition could claim a victory even if the referendum fails on condition that the turnout surpasses the 12.3 million voters who backed the winning center-right coalition in the 2022 general election.
Yahoo
25 minutes ago
- Yahoo
Tesla shareholders face staggering new hurdle after company enacts controversial policy: 'A formidable barrier'
Tesla raised the bar for shareholders to sue the company board or executives for breach of fiduciary duties. The change took effect May 15 and requires an investor or group of investors to hold 3% of the electric vehicle maker's stock "to institute or maintain a derivative proceeding," CNBC reported. Tesla's market cap is $1.123 trillion, so a plaintiff would have to own shares worth $33.7 billion. "Obviously, for a company of Tesla's size, that would be a formidable barrier to anyone bringing a lawsuit for breach of fiduciary duty," Tulane Law School's Ann Lipton told CNBC in an email. The change was enabled by a Texas law that "allows corporations to limit shareholder lawsuits against insiders for breach of fiduciary duty," the outlet added. With shareholder approval, Tesla moved its incorporation site from Delaware to the Lone Star State in June 2024. An investor who owned nine shares of Tesla stock sued the company in 2018, and CEO Elon Musk's $56 billion compensation package was revoked in January 2024. Musk is by far the richest person on the planet, and his wealth makes him nearly untouchable. He helped to pioneer the EV movement by becoming an early investor in Tesla in 2003, and the company has been known for innovative technology and industry-leading breakthroughs. Recently, however, the South African has drawn criticism for straying into American and European politics, including spending lavishly on the U.S. presidential election campaign of Donald Trump, leading government spending cuts as the head of the U.S. Department of Government Efficiency, and supporting the far-right Alternative for Germany party. Activists have protested these actions, and Tesla charging stations, vehicles, and dealerships have been vandalized. Sales have plummeted, and Tesla stock spiraled downward, too, though it has regained much of its value. This upheaval and the larger perception change of Musk from groundbreaker to villain could stifle the uptake of EVs, which is one of the many things necessary to slow the rapid rise of global temperatures caused by the burning of fossil fuels for energy. It would take a massive coalition of shareholders to fight back against this move by Tesla, though companies are generally amenable to public pressure — especially when it comes to consumers' spending power. Tesla, for example, is shifting its focus from EV manufacturing to a robotaxi service and robotics to stabilize its future. Musk has a history of not delivering on outlandish promises, but it has not significantly slowed the company or deterred its supporters. What do you think of Tesla and Elon Musk? Elon is the man Love the company; hate the CEO I'm not a fan of either I don't have an opinion Click your choice to see results and speak your mind. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
35 minutes ago
- Yahoo
Activist Retail Investors Take On Korea's Corporate Laggards
(Bloomberg) -- South Korea's small investors are trying to shake up the country's creaky corporate landscape. Next Stop: Rancho Cucamonga! Where Public Transit Systems Are Bouncing Back Around the World Trump Said He Fired the National Portrait Gallery Director. She's Still There. ICE Moves to DNA-Test Families Targeted for Deportation with New Contract US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn Amateur stock-pickers across the country are gathering on social media platform KakaoTalk and dedicated shareholder apps such as Act, which has racked up more than 110,000 users in the two years since it launched. Their aim: to give a jolt to Korea's $1.9 trillion stock market, which has for years traded at cheaper multiples than regional rivals like Japan and Taiwan. 'Korea's financial system lags global standards and companies need to be held accountable,' said Younghee Won, a 66-year-old art instructor and amateur investor. 'Online platforms allow our anger to translate into action.' This wave of grass-roots activism means Korea's listed companies are now being pressured from all sides, as politicians, regulators and foreign investment funds push for better governance. That may finally force local companies to address the long-standing 'Korea discount' — adding fuel to a stock market that is already one of the world's best performers so far this year. It has also turned small investors into a surprising political force. Lee Jae-myung, the left-leaning politician who won the country's presidential election last week, tried to position himself as a champion for shareholders, promising to lift corporate governance standards, curb stock manipulation and set the Kospi index on the path to 5,000 — almost 80% higher than its current level. The Kospi entered a bull market after Lee's election win and was around 1.7% higher in early Asian trading on Monday. The market is getting a boost from foreign funds loading up on stocks, and rising optimism from Wall Street. Goldman Sachs Group Inc. strategists said in a weekend note they were upgrading Korean stocks to overweight from neutral, pointing to the increased likelihood of capital market reforms. Read: Goldman Upgrades Korean Stocks to Overweight on Domestic Boost Growing Clout Retail investors in Korea now represent almost 30% of the overall population, according to Goldman Sachs. A boom in stock trading during the Covid-19 pandemic led to millions of new account openings, fueling the rise of online communities where they could learn about stock picking — and hatch plans. Shareholders of Korean companies filed 168 proposals in the most recent round of annual general meetings, a jump of more than 80% from 2021, according to figures from the AJU Research Institute of Corporate Management. That included 78 proposals directly targeting management, calling for the appointment or removal of executives. 'Minority shareholders are seeking a more active role in corporate governance,' said Nameun Kim, deputy director at the AJU. 'If previously the focus was solely on returns, now they want their preferred directors on the board so they can participate in management decisions.' So far, small investors' successes have come at small companies, those with a market value of $1 billion or less. During the recent round of annual general meetings in March, medical company Oscotec Inc. scrapped plans to reappoint its chief executive after pushback from investors, while biotechnology firm Amicogen Inc and textile company DI Dong Il Corp. appointed new auditors after small investors pushed for it. Oscotec, Amicogen and DI Dong Il Corp. didn't respond to requests for comment. Unsurprisingly, many companies do their best to resist — or simply ignore — these mini activists. Kim, a schoolteacher who asked to be identified only by his surname, became so frustrated with one Korean company whose stock he holds that he sent 400 letters to fellow investors he found in the company's shareholder registry, asking them to join him in a KakaoTalk group to discuss possible action. More than 120 of them signed up. 'I had to print and mail each one by hand,' he said. 'I did it all on my own, outside of work hours, while maintaining a full-time job. Shareholder activism is exhausting, frustrating and frankly overwhelming.' The company didn't respond to Kim's numerous requests for clarity on their business performance, and he ended up selling most of his stake. He held on to a few shares out of a sense of obligation to his fellow activists. The rise of small investors in Korea differs from the meme-stock mania in the US, where anonymous users on Reddit's WallStreetBets forum banded together to drive up the price of GameStop Corp. and other shares. Korean platforms such as Act and Hey Holder require users to confirm they actually hold shares before they can join any dedicated group, meaning those weighing into discussions already have skin in the game. Act's CEO Sangmok Lee said that users on his platform often act more like 'fans' of the companies they hold. 'Fans engage in shareholder activism out of love for the company, much like how parents use discipline out of love,' Lee said. Powerful Allies Korea's stock market has for years been cheaper than close rivals Japan and Taiwan when it comes to metrics such as the price-to-book ratio, a popular measure of how much a stock is worth compared to the value of a company's assets. The 'Korea discount' doesn't have a single cause but analysts point to worries about how companies invest, a convoluted series of cross shareholdings and a sense that the interests of company executives aren't always in line with their shareholders. Read: What's the 'Korea Discount' and Why Is It a Problem?: QuickTake Small investors won't be enough on their own to turn things around, but they have some powerful allies. Local activist funds like Align Partners Capital Management Inc. are on the rise, adding professional savvy to the efforts of amateur investors. Foreign funds are also getting in on the act, expanding their operations in Korea in the hopes that the market is finally ready to turn a corner. 'We're optimistic that the presidential elections will bring even more substantial changes in South Korea,' said Seth Fischer, founder and chief investment officer of activist fund Oasis Management in a recent Bloomberg Television interview. He added a note of caution, saying there was still a 'long, long way to go' in reforming Korea's corporate sector. But small investors' greatest source of support may come from the very top. In a Facebook post before his election win, Lee Jae-myung promised to protect investors' interests, promote transparency and push companies to appoint directors representing minority shareholders. His goal? Turning the 'Korea discount' into a 'Korea premium.' (Upgrades prices, adds details on Goldman Sachs upgrade in paragraph seven.) The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again Is Elon Musk's Political Capital Spent? What Does Musk-Trump Split Mean for a 'Big, Beautiful Bill'? Cuts to US Aid Imperil the World's Largest HIV Treatment Program ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
