COMPANY NEWS IN BRIEF

BPC says sanctions will increase prices

Belarus Potash Company (BPC), the exporting arm of state potash producer Belaruskali, said on Tuesday that Western sanctions on Belaruskali would lead to an increase in global potash prices and reduced availability of the crop nutrient.

Washington on Monday blacklisted Belaruskali, one of Belarus' largest state-owned enterprises and one of the world's largest producers of potash, and imposed other punitive measures against Belarusian leader Alexander Lukashenko.

The US sanctions do not include BPC, whose supplies account for 20% of global potash trade. Belaruskali owns a 48% stake in BPC and the rest belongs to other state firms.

"The impact of the sanctions is difficult to assess at this point in time. But what is certain is that they will lead to higher potash prices and its lower availability on the global market," BPC said.

"We are examining the decisions taken in detail. BPC will make every effort to fulfil its obligations to its partners within the current legal framework," it added. -Nampa/Reuters

Robinhood to buy Say Technologies

Robinhood Markets Inc said on Tuesday it would buy fintech start-up Say Technologies for US$140 million in an all-cash deal, weeks after the online brokerage's stock market listing.

New York-based Say, founded in 2017, has built a communication platform that crowdsources questions from retail investors and allows them to interact with the companies they invest in during annual meetings, earnings calls and other events.

Say also offers shareholders proxy-voting and polling services. Its platform has been used during Tesla Inc's earnings calls, according to media reports.

"Say was built on the belief that everyone should have the same access to the financial markets as Wall Street insiders," a blog post from Robinhood said.

With a marketing mantra of "democratizing finance", Robinhood has sought to win over retail investors. In May, the company unveiled a new platform to allow retail investors the opportunity to snap up shares in initial public offerings. -Nampa/Reuters

Phillips 66 weighs broader move

Phillips 66, the fourth largest US oil refiner, is weighing a broader move into developing battery components for electric vehicles and storage systems, according to top executives, leveraging its own and others' research as it accelerates a shift from fossil fuels.

Phillips 66, which gets the bulk of its profits from processing oil into gasoline, diesel and petrochemicals, has become one of the largest supplies of a graphite used to make a key component in electric vehicles. It recently formed an "emerging energy" unit to explore new markets for hydrogen and low-carbon fuels.

"The US refining business in the future is going to be smaller, not bigger," Chief Executive Greg Garland told reporters at its headquarters on Monday.

Battery research and partnerships would pivot beyond its small but lucrative materials business. Phillips 66's existing business - supplying materials for companies building graphite anodes for EV batteries has been valued at more than US$1 billion. The anode is about 10% to 15% of a lithium-ion battery's cost. -Nampa/Reuters

Wells names Steven Black as chairman

Wells Fargo & Co on Tuesday named Steven Black as chairman effective immediately, succeeding Charles Noski who will retire at the end of September after more than a year-long stint.

Black has over four decades of financial services experience and has served as co-chief executive officer of private equity firm Bregal Investments since 2012.

"Chuck (Noski) stepped into the chairman role at an important inflection point for the company — both in terms of our ongoing work to improve our controls and governance and in the early days of what became an unprecedented global pandemic," Wells Fargo CEO Charlie Scharf said.

The board change comes as Scharf, who took the helm in September 2019, battles to turn the bank around after two other bosses failed to do so, and the bank had to spend billions of dollars on litigation and remediation following a wave of sales practice scandals. -Nampa/Reuters

Southwest warns on profits

Southwest Airlines Co warned on Wednesday that the spread of the Delta variant of Covid-19 had hit bookings and increased cancellations, hurting its chances at profitability this quarter.

The rapid surge in cases of the variant has pushed US hospitalizations to a six-month high, prompting governments in areas such as Hawaii to reimpose restrictions and threatening a recovery in travel demand. read more

Dallas-based Southwest cut its forecast for third-quarter operating revenue by three to four percentage points from its prior outlook issued just three weeks ago, the first major US carrier to trim guidance as a result of the variant.

The profit-warning marked a U-turn from the airline's upbeat statement last month that it would remain profitable for the rest of 2021.

Last week, ultra-low-cost carrier Frontier Airlines also lowered its third-quarter forecast and warned the Delta variant was hurting demand.

While analysts expect other airlines to also revise guidance lower, Raymond James analysts noted expectations that new coronavirus cases may be peaking and soon begin a downward trajectory. -Nampa/Reuters