Nvidia CEO Jensen Huang expressed confidence that global collaboration in science and technology will persist, even amid potential tighter export controls from the incoming Trump administration. Huang on Global Cooperation Despite the Trump administration’s previous restrictions on exporting US technology to China, Huang believes international collaboration remains essential. “Open science and global cooperation across math and science have been the foundation of societal and scientific advancements for a very long time,” Huang stated during a media session in Hong Kong. He emphasized Nvidia's commitment to balancing compliance with laws and policies while continuing to advance technology and serve customers globally. The Age of AI During a speech at the Hong Kong University of Science and Technology (HKUST) , Huang declared, “The age of AI has started — a new computing era that will impact every industry and every field of science.” Highlighting Nvidia’s innovations, he describe
Moody's has placed Britain's Southern Water on a warning for a "junk" rating downgrade, just days after stripping Thames Water of its investment-grade status.
Key Points:
- Moody's Concerns: The rating agency cited UK regulator Ofwat's draft decision to limit customer bill increases and Southern Water's looming fines as primary concerns.
- Current Rating: Southern Water currently holds a Baa3 rating, the lowest investment-grade rung.
- Regulatory Decision: Ofwat's draft determination prevents Southern from raising bills as much as requested, impacting its investment program funding.
- Fines and Penalties: Southern Water faces substantial fines, including at least £35 million in "Outcome Delivery Incentive" penalties, with potential ongoing annual fines of £19 million to £60 million if improvements are not made.
- Pollution Reduction: Southern Water is mandated to reduce pollution incidents by 81%, significantly more than other water companies, which face less than a 30% reduction requirement.
- Funding Needs: Moody's estimates Southern Water needs to raise £4.5 billion in debt and equity by the end of the decade. Maintaining a leverage ratio of 70% requires over £800 million in net equity contributions, with no certainty of investment from its majority owner, Macquarie.
Company Response:
Southern Water, majority-owned by Australian investment firm Macquarie, stated that Moody's warning has "no material impact" on its operations, highlighting over £850 million in available liquidity.
Next Steps:
Moody's will conclude its rating review after Ofwat releases its final price determination plan in December but may act sooner if substantial new information arises.
Conclusion:
Southern Water's financial stability is under scrutiny as it faces regulatory restrictions and significant penalties, casting doubt on its ability to maintain its current rating without substantial new equity and debt funding.
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