[Bullsn'Bears] Major International Business Headlines Brief::: 09 January 2018

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Tue Jan 9 10:32:26 CAT 2018




 

	
 


 

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Major International Business Headlines Brief::: 09 January 2018

 


 

 


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*  South Africa's net foreign reserves rise to $42.9 bln in December

*  South Africa's rand retreats with fundamentals back in focus

*  Uganda private-sector activity slows on uptick in input costs

*  Tunisian annual inflation rises to 6.4 pct in December

*  Tanzania inflation fell to 4.0 pct year-on-year in December

*  Angola to hold forex auction Tuesday as it ends dollar peg: sources

*  South Africa's rand slips as investors book profits

*  Kenyan shilling stable amid dollar inflows from charities

*  Libyan oil revenues up sharply in 2017, budget deficit halved - cenbank

*  OPEC oil cut adherence rises in Dec as Venezuela output slides - survey

*  Forget Bitcoin - now Dogecoin goes wild

*  Samsung forecasts record profits but misses expectations

*  CES 2018: Intel to make flawed chips safe in a week

*  Google sued over 'male discrimination'

*  GoPro considers sale as revenues plunge

*  Apple investigated by France for 'planned obsolescence'

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

South Africa's net foreign reserves rise to $42.9 bln in December

JOHANNESBURG (Reuters) - South Africa’s net foreign reserves rose to $42.927
billion in December from $42.689 billion in November, the Reserve Bank said
on Monday.

 

Gross reserves also increased, to $50.722 billion from $50.297 billion, the
central bank data showed.

 

The forward position, which represents the central bank’s unsettled or swap
transactions, decreased to $1.196 billion from $1.732 billion.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <http://www.fmrelifeandhealth.co.zw/> 

 


 

South Africa's rand retreats with fundamentals back in focus

JOHANNESBURG (Reuters) - South Africa’s rand weakened early on Tuesday with
the currency continuing to struggle to break through recent highs as some of
the cheer over the appointment of Cyril Ramaphosa as head of the ruling
party gave way to more bearish sentiment.

 

At 0640 GMT the rand had weakened 0.16 percent to 12.4000 per dollar
compared to a close of 12.3800 overnight in New York.

 

Over the last few sessions the currency has failed to breach technical
resistance around 12.30, which could open the door to rally towards 12.23
and lower - the rand 2-1/2 year best touched in December after Ramaphosa’s
election and again last Thursday.

 

The rand has been on the front foot since December, gaining around 8 percent
as investors bet Ramaphosa’s election as leader of the ruling African
National Congress would push through business-friendly policies.

 

Momentum and trend indicators have however shown the rand in overbought
territory and due for a retracement, with the added threat of higher rates
in the United States pouring further water on bullish bets.

 

With South Africa’s economy also struggling to gain traction following a
recession in the first quarter of 2017, investors may also be looking to
other emerging market currencies for bookable carry trades.

 

Bonds traded slightly weaker, with yield on the benchmark paper due in 2026
up 0.5 basis points at 8.605 percent.

 

Stocks opened slightly higher, with the benchmark Top-40 index up 0.18
percent to 53,227 points.

 

 

Uganda private-sector activity slows on uptick in input costs

KAMPALA (Reuters) - Uganda’s private-sector economic growth decelerated in
December from the previous month, hurt by a surge in company input costs, a
survey showed on Thursday.

 

The Markit Stanbic Bank Uganda Purchasing Managers’ Index (PMI) declined to
54.3 from 54.9 in November. A reading above 50 indicates expansion; anything
below, a contraction.

 

Markit said its data had showed “a further increase in overall input costs,”
with slightly under a third of all surveyed firms reporting ballooning
costs.

 

Input price inflation was recorded across all the monitored sectors:
agriculture, construction, industry, services and wholesale and retail
sectors.

 

“Cost burdens were driven up by higher purchase costs and wages/salaries,”
the survey report said.

 

Growth was posted on several indicators, however, including new orders,
which expanded amid an “easing in political tensions in key trading
partners.”

 

A tense and protracted election season in neighbouring Kenya had curtailed
business between the two countries and curbed private-sector activity during
the period. Kenya is Uganda’s biggest regional trading partner and the
landlocked country’s gateway to the sea.

 

Jibran Qureishi, East Africa economist at Stanbic Bank, said robust public
spending on infrastructure would likely remain a key source of vitality for
Uganda’s private sector in 2018 and keep GDP growth “on upward trajectory.”

 

Uganda hopes to begin crude oil production in 2020, and development of
several related infrastructure projects is under way, including an export
pipeline, roads and an airport.

 

- Detailed PMI data are only available under licence from Markit and
customers need to apply to Markit for a licence.

 

 

 

Tunisian annual inflation rises to 6.4 pct in December

TUNIS (Reuters) - Tunisia’s annual inflation rate rose to 6.4 percent in
December, it’s highest rate since July 2014, from 6.3 percent in November,
official data showed on Monday.

 

 

Tanzania inflation fell to 4.0 pct year-on-year in December

DAR ES SALAAM (Reuters) - Tanzania’s inflation rate fell to 4.0 percent
year-on-year in December, down from 4.4 percent in November because of
slower food price increases, the statistics office said on Monday.

 

The month-on-month inflation was 0.2 percent in December, compared with 0.5
percent in November.

 

“The speed of price change for commodities in the year ending December 2017
has decreased compared to the speed of price change recorded in the year
ended in November 2017,” Ephraim Kwesigabo, director at state-run National
Bureau of Statistics, said.

 

Food and non-alcoholic beverages inflation rate decreased to 6.2 percent in
December from 7.4 percent in November.

 

 

Angola to hold forex auction Tuesday as it ends dollar peg: sources

JOHANNESBURG (Reuters) - Angola will hold a foreign exchange auction on
Tuesday, the first since the central bank announced it would shift from a
currency peg to a trading band, two banking sources said on Monday.

 

A forex auction was supposed to take place on Friday but it was delayed
until Tuesday, the two sources told Reuters, adding that they expected the
kwanza to depreciate between 20 and 30 percent under the new rules.

 

 

South Africa's rand slips as investors book profits

JOHANNESBURG (Reuters) - South Africa’s rand weakened on Monday, succumbing
to a resurgent dollar and some profit-taking after seven weeks of gains
sparked by leadership changes in the ruling party and a rally in global
commodity prices.

 

At 0645 GMT the rand was 0.4 percent weaker at 12.3525 per dollar compared
to a close of 12.3050 in New York on Friday.

 

Late on Friday U.S. nonfarm payrolls increased slightly less than expected,
but traders bet the Federal Reserve remained on track to raise interest
rates in 2018, igniting some dollar buying after a soft start to the year.

 

The rand has seen volatile trade in the first week of the year after a
stellar 2017 that saw it rack up gains of 11 percent against the greenback.

 

Persistent rumours that President Jacob Zuma could be forced to step down
before his term ends in 2019 supported some short term gains in the rand,
but the rally stalled in the face of technical barriers and economic
fundamentals.

 

Analysts saw strong resistance at around 12.24, while momentum indicators
showed the currency in overbought territory and a likely target for
continued selling.

 

Bonds traded firmer with yield on the benchmark paper due in 2026 down 1.5
basis points at 8.55 percent.

 

The blue-chip JSE Top-40 index opened 0.46 percent firmer at 52,083 points.

 

 

Kenyan shilling stable amid dollar inflows from charities

NAIROBI (Reuters) - The Kenyan shilling was stable against the dollar with
subsiding demand from manufacturers and oil importers likely to keep trades
in a narrow price band during Monday’s session, traders said.At 0630 GMT,
commercial banks quoted the shilling at 103.20/40 per dollar, compared with
103.25/45 at Friday’s close.

 

 

Libyan oil revenues up sharply in 2017, budget deficit halved - cenbank

TUNIS (Reuters) - Libya earned $14 billion in oil revenues in 2017, nearly
three times more than in the previous year, allowing it to halve its budget
deficit, the central bank said, amid a partial recovery in oil output
despite continued political and economic turmoil.

 

Libya’s budget deficit for 2017 stood at 10.6 billion Libyan dinars ($7.85
billion), down from 20.3 billion dinars the previous year, the bank said in
statement published late on Thursday. Oil revenues had totalled $4.8 billion
in 2016.

 

Its oil earnings accounted for more than 86 percent of Libya’s total
national revenues of 22.31 billion dinars.

 

Of 32.7 billion dinars worth of state spending, 20.3 billion dinars went on
state salaries and 6 billion dinars on subsidies, the statement said.

 

The figures show the partial recovery last year in oil production slightly
slowing the otherwise rapid economic decline of a nation still dogged by
armed conflict and political upheaval more than seven years after the
overthrow of veteran leader Muammar Gaddafi.

 

Economists say it is unclear to what extent the central bank’s figures fully
reflect economic activity, because the institution has been split for
several years between its Tripoli headquarters and a rival branch loyal to a
government based in eastern Libya.

 

The Tripoli central bank said its figures did not include 22 billion dinars
of what it regards as unauthorised spending by the central bank in the east.

 

Libya has been divided since 2014 between rival institutions and warring
factions based in the east and west.

 

However, the central bank in Tripoli has continued to control oil revenues,
which account for nearly all the country’s income, and to disburse them
across the country.

 

Oil production, in decline from 2013, recovered to around 1 million barrels
per day (bpd) last year, but this is still well below the more than 1.6
million bpd Libya was pumping before the 2011 uprising.

 

Living standards have dropped sharply, with inflation running at around 30
percent and the dinar slipping on the black market to around 9 dinars to the
dollar.

 

Foreign reserves have fallen to an estimated $67.5 billion, compared to
$123.5 billion in 2012, according to the World Bank.

 

The central bank said in November it had agreed on currency and spending
reforms with the internationally recognised government in Tripoli, but it is
unclear when the plan will be carried out.

 

($1 = 1.3498 Libyan dinars)

 

 

OPEC oil cut adherence rises in Dec as Venezuela output slides - survey

LONDON (Reuters) - OPEC deepened compliance with an oil supply-cutting deal
in December due to a further decline in Venezuelan output and extra cuts by
Gulf exporters, a Reuters survey found, showing strong commitment to the
deal despite higher prices.

 

Adherence to the curbs rose to 128 percent from 125 percent in November, the
survey found. The United Arab Emirates for the first time since the deal
took effect in January 2017 pumped below its OPEC target, joining Saudi
Arabia and Kuwait.

 

The Organization of the Petroleum Exporting Countries is reducing output by
about 1.2 million barrels per day (bpd) as part of a deal with Russia and
other non-OPEC producers. The pact will run until the end of 2018.

 

Oil hit its highest since May 2015 this week, supported by falling
inventories, strong demand and high OPEC compliance. Many producers, still
suffering from a 2014 price collapse, are enjoying the rally and the extra
revenues.

 

“We are all pleased about it,” one official in an OPEC country said of the
early 2018 price rise.

 

The survey shows no sign of producers boosting output to cash in on higher
prices or to replace the decline in Venezuela, where output is dropping amid
an economic crisis.

 

In the past, waning compliance as oil prices rallied has reduced the
effectiveness of OPEC accords.

 

Top exporter Saudi Arabia trimmed output by 60,000 bpd, according to sources
in the survey who cited stable to lower exports and lower refinery
processing, putting supply further below the kingdom’s OPEC target.

 

Production in Venezuela, where the oil industry is starved of funds due to a
cash crunch, has fallen further below its OPEC target, the survey found.
Both exports and refinery operations were lower in December.

 

The UAE, the incoming OPEC president, has cut production further and
delivered its highest adherence yet, according to Reuters surveys. The UAE
was a laggard on compliance for most of 2017, compared to peers like Saudi
Arabia.

 

“The UAE has the OPEC presidency this year and they feel they should try to
do better,” said an industry source, who has discussed the issue with OPEC
officials.

 

Libyan output slipped by 30,000 bpd, hampered by damage to a pipeline in a
suspected attack and other outages.

 

Among countries with higher output, the biggest rise came from Nigeria,
whose exports in December were set to reach a 21-month high, although actual
shipments fell short of that level.

 

The second-largest came from Iraq. A boost in exports from Iraq’s south, the
outlet for most of its crude, to a record 3.55 million bpd in December,
offset relatively low shipments from the north, the survey found.

 

Output in northern Iraq is still down after falling in mid-October when
Iraqi forces retook control of oilfields from Kurdish fighters who had been
there since 2014. This has had the side-effect of boosting Iraqi compliance.

 

Algerian output rose after a reduced impact from planned oilfield
maintenance.

 

OPEC in late 2016 announced a production target of 32.50 million bpd. The
target includes Indonesia, which has since left OPEC, and does not include
Equatorial Guinea, the latest country to join.

 

According to the survey, output in December has averaged 32.28 million bpd,
about 530,000 bpd above the target adjusted to remove Indonesia and not
including Equatorial Guinea.

 

With Equatorial Guinea, production in December totalled 32.41 million bpd,
up 20,000 bpd from November. The November total was revised down by 90,000
bpd to the lowest since April 2017, according to Reuters surveys.

 

The Reuters survey is based on shipping data provided by external sources,
Thomson Reuters flows data, and information provided by sources at oil
companies, OPEC and consulting firms.

 

 

 

Forget Bitcoin - now Dogecoin goes wild

You know an investment is somewhat unconventional when the Know Your Meme
website is the main source of background information.

 

But even in the turbulent world of cryptocurrencies, Dogecoin is seen as a
pretty wild creature.

 

It was launched in 2013, inspired by a short-lived online craze for pictures
of a particular Japanese dog breed.

 

Last weekend, however, it nearly doubled in value and is now worth more than
$2bn (£1.5bn).

 

Dogecoin had been gaining steadily all through December, but the latest
spike has prompted howls of "crypto-hype" from sceptics.

 

Granted, it's still well behind the biggest beast in the digital currency
pack, Bitcoin, which has a total value of more than $270bn.

 

But given that Dogecoin was initially intended as a parody of the Bitcoin
boom, its founder, Jackson Palmer, is none too happy now that it has slipped
its leash.

 

"The fact that most conversations happening in the media and between peers
focus on the investment potential is worrying," he said earlier this month.

 

Backing underdogs

Until its recent rise in value, Dogecoin was little known beyond a small
coterie of geeks.

 

But in sporting circles, the cryptocurrency's backers have gained a
reputation for some unorthodox sponsorship choices.

 

In 2014, US stock car racing became a surprise beneficiary, when members of
the Dogecoin community decided to give a helping hand to Nascar driver Josh
Wise, donating $55,000 worth of the digital currency.

 

That same year, Dogecoin backers raised $25,000 to send the Jamaican
bobsleigh team to the winter Olympics.

 

Sporting underdogs have clearly done well out of Dogecoin, but what about
investors? Will they be barking up the wrong tree if they buy into the
currency?

 

Well, one thing to bear in mind is that dogecoins are far more numerous than
bitcoins.

 

The rules underpinning Bitcoin say that only 21 million bitcoins can be
created - and that figure is getting ever nearer. It is unclear what will
happen to the value of bitcoins when that limit is reached.

 

Dogecoins are "mined" in the same way as bitcoins - that is, they are
created using computer processing power.

 

However, unlike Bitcoin, there is no upper limit on the number of dogecoins
that can be produced, with a staggering 100 billion already in existence.

 

That helps to explain why each dogecoin is currently worth less than two US
cents, while Bitcoin's peak value to date was nearly $20,000.

 

'Little confidence'

Common sense tells us that scarce commodities are more likely to hold their
value than plentiful ones.

 

But in the world of cryptocurrencies, common sense is perhaps a poor guide
to future behaviour.

 

And in the world of economic experts, there is still widespread scepticism
about any and every form of cryptocurrency.

 

Prof Ethan Ilzetzki at the London School of Economics told the BBC: "A
digital unit of currency has no intrinsic value unless it can be used in
transactions, and I cannot name a single cryptocurrency that is more useful
in transactions than a credit card that's denominated in dollars or pounds
or yen.

 

"There's nothing inherently wrong with privately provided digital
currencies, but they need to be well designed and well thought out.

 

"They're worth a lot because people say they're worth a lot. I have very
little confidence that they have any long-term value."--bbc

 

 

Samsung forecasts record profits but misses expectations

Samsung Electronics expects to deliver record profits for the last three
months of 2017, but the estimate missed analyst expectations.

 

The world's biggest memory chip maker forecast operating earnings of 15.1
trillion won ($14.1bn; £10.4bn) - up 64% from a year earlier.

 

But while chip prices boosted margins, a stronger won weighed on the
figures.

 

The record guidance comes despite a corruption scandal engulfing top
leadership at the South Korean firm.

 

The operating profit forecast is slightly below the 15.9 trillion won
estimated by analysts surveyed by Reuters.

 

Customers unfazed

The forecast keeps Samsung on track for record annual profits, in a year
when prices for computer memory chips kept surging.

 

But the 2018 outlook is less certain, with Samsung shares having fallen
nearly 10% from their all-time high in November, as some investors bet on an
end to the chip boom.

 

Meanwhile, the market for smartphones and other mobile devices is facing
increasing competition from Chinese rivals.

 

As well as the jailing of its heir apparent Lee Jae-yong for bribery and
corruption, Samsung's reputation was also hurt by the global recall of its
flagship Note 7 smartphone in 2016, following the fiasco with its
overheating and exploding batteries.

 

However the problems with the handset did not cause major disruption to the
firm's finances, helped by its buoyant chip business as well as customers
seeming unfazed by the incident.

 

Samsung Electronics is regarded as the jewel in the crown of the Samsung
Group conglomerate, which is made up of 60 interlinked companies and is one
of South Korea's massive family-run businesses known as chaebols.--BBC

 

 

CES 2018: Intel to make flawed chips safe in a week

Intel's chief executive has said software fixes to address the recently
discovered Meltdown and Spectre bugs in microchips would be released in the
next few days.

 

Brian Krzanich was speaking at the beginning of his keynote speech at the
CES trade show event in Las Vegas.

 

He said 90% of processors and products from the past five years would be
patched "within a week".

 

Intel has faced scrutiny after details of the flaws emerged last week.

 

Meltdown and Spectre are unusual in that they are both problems with a
fundamental component inside modern computers - the central processing unit
(CPU).

 

They allow attackers to potentially access sensitive data held in the chip's
memory that would otherwise be off limits.

 

Mr Krzanich took a moment at the beginning of his address at the tech fair
to refer to the design issues discovered by researchers on some Intel, ARM
and AMD chips.

 

However, he did not apologise on his firm's behalf for what he described as
an industry-wide problem.

 

'Security is key'

"Before we start I want to take a moment to thank the industry for coming
together," he told attendees.

 

"Security is job number one for Intel and our industry, so the primary focus
of our decisions and discussions have been to keep our customer's data
safe."

 

He added that there had to date been no confirmed cases in which customer
data had been accessed via exploits designed to take advantage of the flaws.

 

And he reiterated advice that users should apply security updates as soon as
possible to protect themselves from malicious hackers.

 

"It's clear this is not just an Intel problem," said Geoff Blaber, an
analyst from CCS Insight who was at the keynote.

 

"At least Intel and others have been able to respond in a reasonably
efficient manner."

 

Mr Krzanich used the rest of his time on stage to explore new technologies
that use Intel's products - including "volumetric" video capture that maps a
scene or sports field in 3D, so the viewer can watch from practically any
angle they choose.

 

There was also reference to the company's work in experimental computing
architectures, including quantum computing.

 

In quantum computing, qubits - which can have a state of either zero or one
simultaneously - take over from traditional bits.

 

Intel has developed a 49-qubit chip, Mr Krzanich announced, putting the firm
on a par with rivals IBM and Google, which have been working on chips at a
similar scale.

 

It is thought that millions of qubits will be needed for a quantum computer
to offer revolutionary processing capabilities, however.

 

There was also discussion of how Intel's tech is being built into
self-driving cars.

 

Its chip-making rival Nvidia had boasted earlier in the week that it was
working with more than 320 partners on self-drive vehicles, including Uber
and VW.

 

Intel also showed off the experimental Volocopter "flying taxi" - which
briefly flew on stage, behind a protective barrier.

 

Finally, the keynote closed with a light show powered by 100 Shooting Star
Mini drones that did not rely on GPS for navigation - something Mr Krzanich
said was an official Guinness World Record.

 

"It's an excellent showcase for the technology and it does give the brand a
boost - it's a very effective marketing exercise," said Mr Blaber.

 

"It was an exhausting two hour [event] but it goes to show, that's how many
fronts Intel is working on."--BBC

 

 

 

Google sued over 'male discrimination'

Google has been accused of discriminating against conservative white men in
a class action lawsuit filed by two former engineers.

 

The duo say they want to represent all staff discriminated against due to
their "perceived conservative political views, male gender and Caucasian
race".

 

James Damore, fired last year over a controversial memo, is behind the suit.

 

His memo argued there were few women in top jobs at the firm due to
biological differences between men and women.

 

Google sued over 'sex discrimination'

Google fires diversity memo author

Mr Damore and David Gudeman, another former engineer at the firm, filed the
suit at Santa Clara Superior Court in California.

 

A spokesperson for Google said they "look forward to defending against Mr
Damore's lawsuit in court."

 

A separate case filed by three women who used to work at Google, alleging it
pays women less than men for comparable work, was dismissed last month, but
has been refiled in an amended form.

 

Mr Damore and Mr Gudeman claim in their lawsuit that Google employs illegal
hiring quotas to fill posts with women and minorities.

 

They accuse the company of failing to protect employees with conservative
views, including supporting US President Donald Trump.

 

Their lawsuit says the men were "openly threatened and subjected to
harassment and retaliation" at the company, which they describe as an
"ideological echo chamber".

 

It says Google "openly shames" managers who fail to meet goals, even booing
them at meetings.

 

Mr Damore's memo caused fierce debate about free speech in the workplace and
diversity in Silicon Valley.

 

The memo's focus on perceived biological differences between men and women
proved highly controversial.

 

In the lawsuit, Mr Damore said the memo was intended to remain internal and
had been written in response to a request for feedback from a diversity and
inclusion summit he had attended.

 

When Mr Damore lost his job, Google CEO Sundar Pichai said portions of the
memo violated the company's code of conduct and crossed "the line by
advancing harmful gender stereotypes in our workplace".

 

But Mr Damore said he had received "many personal messages from fellow
Googlers expressing their gratitude" for speaking out.

 

Google is also under investigation by the US Department of Labor over
whether its pay practices fall foul of equal pay laws.

 

 

GoPro considers sale as revenues plunge

Camera-maker GoPro is reported to be considering a sale after suffering a
steep decline in holiday sales.

 

"If there are opportunities for us to unite with a bigger parent company to
scale GoPro even bigger, that is something that we would look at," GoPro
boss Nicholas Woodman told CNBC.

 

GoPro earlier said revenue fell almost 40% in the fourth quarter to $340m
compared to the same period in 2016.

 

GoPro also announced redundancies and said it would exit the drone business.

 

Shares plunged almost a quarter following the announcement, but started to
rebound at the idea of a sale.

 

Reports have suggested that GoPro has hired JP Morgan Chase to explore a
sale, but Mr Woodman has denied this.

 

The firm said it is committed to "turning around" the business.

 

GoPro reported losses in 2015 and 2016.

 

GoPro or go home! Crunch time for the 'mad billionaire'

GoPro makes cutbacks after drone crashes

This year, weak sales during the critical holiday season forced it to slash
prices of key products, including the HERO5 Black camera, in an effort to
increase demand. The move cost about $80m, GoPro said.

 

The company is cutting more than 250 staff from its workforce, which
numbered more than 1,250 at the end of September.

 

It said it will stop making aerial cameras, citing an "extremely
competitive" market and hostile regulatory climate.

 

The salary of chief executive Nicholas Woodman has also been cut to just $1
in an effort to reduce expenses.

 

He hoped the actions would return the firm to profitability in the second
half of 2018.

 

GoPro will release more detailed financial details in February.

 

Founded in 2004, the California-based firm is known for its small, portable
video cameras.

 

Its shares surged after listing in New York in 2014 but have fallen more
recently following increased competition from smartphones.

 

There have also been issues with some products, including the recall of its
Karma aerial camera in 2016, after unexpected crashes.--BBC

 

 

 

Apple investigated by France for 'planned obsolescence'

French prosecutors have launched a probe over allegations of "planned
obsolescence" in Apple's iPhone.

 

Under French law it is a crime to intentionally shorten lifespan of a
product with the aim of making customers replace it.

 

In December, Apple admitted that older iPhone models were deliberately
slowed down through software updates.

 

But it insisted it was because the phones' battery performance diminished
over time.

 

The French investigation is being led by the economy ministry's consumer
protection agency.

 

It follows a legal complaint filed in December by pro-consumer group Stop
Planned Obsolescence (Hop).

 

Hop said France was the third country to investigate Apple after Israel and
the US, but the only one in which the alleged offence was a crime. Penalties
could include up to 5% of annual turnover or even a jail term.

 

The group alleged that Apple had both deliberately slowed down some iPhone
models through a software update and timed the update to coincide with the
release of the newer model, the iPhone 8.

 

"The slowing down of older devices seems to have the deliberate aim of
pushing Apple customers towards purchasing the new model," the group said.

 

Hop has previously filed legal complaints against printer manufacturers
Epson, Canon, HP and Brother, alleging that the firms deliberately shorten
the life of print cartridges.

 

Buyers of the iPhone have shared anecdotes about the devices slowing down
with age for many years.

 

The company issued a public apology in December when confirmation came from
users running in-depth tests on their own devices and publishing the
results.

 

Apple said the update was designed to extend the life of older phones as
their batteries became less capable of providing the power for high-speed
operations.

 

"Lithium-ion batteries become less capable of supplying peak current
demands... as they age over time, which can result in the device
unexpectedly shutting down to protect its electronic components," the
company said.

 

It said its update was made "to smooth out the instantaneous peaks only when
needed".

 

It slashed the price of replacing an aged battery by two-thirds, which it
said would restore devices to their former speed, and pledged to be more
transparent in future.--BBC

 

 

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


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for guideline purposes only and sourced from third parties.

 


 

 


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