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Losses on Bank of China crude oil investment product could hit $1.3 bln-report – Financial Post

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SHANGHAI — Total losses from a structured crude oil product marketed to retail investors by the Bank of China could be more than 9 billion yuan ($1.27 billion), the Caixin financial news outlet reported on Sunday, citing official sources.

More than 60,000 individual investors involved in the scheme have lost deposits worth as much as 4.2 billion yuan, it said. A third of the total had invested more than 50,000 yuan each.

The Bank of China’s crude oil “bao” is sold to individual customers and is linked to domestic and foreign crude oil futures contracts, including West Texas Intermediate (WTI) and Brent.

The Bank of China last week settle trades after WTI futures prices fell below $0 for the first time, ending at minus $37.63 per barrel as traders paid to get rid of their oil.

The bank held between 24,000 and 25,000 long positions, with each position the equivalent of 1,000 barrels, leading to an estimated loss of 5.8 billion yuan, Caixin said.

The bank said last Friday that it was “deeply disturbed” by the losses incurred by its investors, and blamed volatility in the global oil market brought about by the global coronavirus pandemic. ($1 = 7.0813 yuan) (Reporting by David Stanway and Emily Chow; Editing by Kim Coghill)

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Why sound governance key to pursuing investment returns – Wealth Professional

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The report is linked to Mercer’s ongoing multi-year Transformational Investment collaboration with the World Economic Forum (WEF). The series explores investment and governance practices for global systemic risks.

Through this collaboration, the WEF and Mercer had provided institutional investors with a six-step governance and decision-making framework to pursue attractive risk-adjusted returns. The principles were:

  • Understanding the overall impact on the funding entity, objectives, and beneficiaries;
  • Collaborating with similarly situated organizations who are concerned about the same risks and opportunities;
  • Designing governance, policies, delegation, and accountabilities for material systemic risks;
  • Investing to manage the portfolio’s exposure to the global systemic risk;
  • Transforming through driving investment strategy that aims to deliver change; and
  • Monitoring and revisiting – applying learnings to improve policies and processes.

Given this framework, Mercer’s paper rolled out two objectives for institutional investors:

  • Evaluating governance strategies developed to address systemic risks, in terms of addressing the COVID-19 pandemic-driven market crisis; and
  • Considering practical investment actions by long-term investors that support economic recovery and generating attractive risk-adjusted returns. Investments that support economic recovery and resurgence are considered “transformational.”

“As illustrated by the COVID-19 pandemic, our economy, society, and planet face numerous long-term, global systemic risks, which need to be mitigated,” said Rich Nuzum, global president of Mercer’s Investments and Retirement business. “Institutional investors have the ability to respond to these challenges and continue to seek positive investment outcomes, while mitigating the effect of these systemic risks. This is especially true when it comes to governance, as sound and robust investment practices can benefit the economy and broader society through periods of market volatility and economic uncertainty.”

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Volkswagen closes $2.6 billion investment in self-driving startup Argo AI – Yahoo Canada Finance

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Volkswagen closes $2.6 billion investment in self-driving startup Argo AI
Signage at a Volkswagen dealership is seen in London, Britain

(Reuters) – German automaker Volkswagen AG <VOWG_p.DE> has closed its $2.6 billion investment in Argo AI, the Pittsburgh-based self-driving startup disclosed in a blog post on Tuesday.

Argo, founded in 2016 by Bryan Salesky and Peter Rander, is now jointly controlled by VW and Ford Motor Co, which made an initial investment in Argo shortly after it was founded.

Details of the VW investment, which does not include an agreement to purchase $500 million worth of Argo stock from Ford, was announced last July.

VW’s agreement includes the transfer to Argo of its Munich-based Autonomous Intelligent Driving unit, which boosts Argo’s employment to more than 1,000, according to Salesky.

Last week, VW disclosed that its supervisory board had approved several projects in a multibillion-dollar alliance with Ford that also was announced last July.

Ford created Ford Autonomous Vehicles LLC in 2018, pledging to invest $4 billion until 2023 and had sought outside investors to help share the spiraling cost of developing autonomous vehicles.

(Reporting by Paul Lienert in Detroit; Editing by Nick Zieminski)

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Volkswagen closes $2.6 billion investment in self-driving startup Argo AI – TheChronicleHerald.ca

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(Reuters) – German automaker Volkswagen AG has closed its $2.6 billion investment in Argo AI, the Pittsburgh-based self-driving startup disclosed in a blog post on Tuesday.

Argo, founded in 2016 by Bryan Salesky and Peter Rander, is now jointly controlled by VW and Ford Motor Co, which made an initial investment in Argo shortly after it was founded.

Details of the VW investment, which does not include an agreement to purchase $500 million worth of Argo stock from Ford, was announced last July.

VW’s agreement includes the transfer to Argo of its Munich-based Autonomous Intelligent Driving unit, which boosts Argo’s employment to more than 1,000, according to Salesky.

Last week, VW disclosed that its supervisory board had approved several projects in a multibillion-dollar alliance with Ford that also was announced last July.

Ford created Ford Autonomous Vehicles LLC in 2018, pledging to invest $4 billion until 2023 and had sought outside investors to help share the spiraling cost of developing autonomous vehicles.

(Reporting by Paul Lienert in Detroit; Editing by Nick Zieminski)

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