Major International Business Headlines Brief::: 23 December 2019

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Major International Business Headlines Brief::: 23 December 2019

 


 

 


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*  Tech trends 2020: New spacecraft and bendy screens

*  IMF approves $2.9 bln financing package for Ethiopia

*  South African Airways has reasonable chance of survival - rescue
specialist

*  Angolan term allocations, Nigerian programmes emerge

*  Exports of Nigerian Qua Iboe crude oil to rise, Bonny to fall in February
- programme

*  EXPLAINER: What it means for South African Airways to be in 'business
rescue'

*  S.Africa's treasury says working to step up timeline for Eskom
restructuring

*  S.Africa's rand flat, stocks subdued in thin holiday trade

*  Remgro-backed telecoms firm speeds up broadband expansion after $1 bln
debt deal

*  Deutsche Bank whistleblower hits back at regulator

*  Whirlpool: MPs call on washing machine firm to offer swift refunds

*  Nord Stream 2: Germany and Russia decry US sanctions

*  UK approves £4bn US takeover of defence company Cobham

*  Andrew Bailey appointed as new Bank of England governor

 

 


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Tech trends 2020: New spacecraft and bendy screens

If your ambition is to fly into space - and you've got plenty of spare cash
- then 2020 could be an exciting year.

 

If space travel is not really your thing, but you would like a much bigger
screen on your mobile phone, then 2020 might also have some tech for you.

 

But if you think there are already too many phones out there and the
technology industry needs to be less wasteful, well some tech companies
might catch up with your thinking.

 

Here's a little taster of what might be coming in the next twelve months.

 

Crewed space missions

2020 is going to be a "pivotal year" for space travel, according to Guy
Norris, a senior editor at Aviation Week & Space Technology.

 

Since Nasa retired the Space Shuttle in 2011, the US has relied on Russian
spacecraft to transport astronauts to the International Space Station.

 

That could all change in 2020 when, if all goes to plan, two US-built
spacecraft should start carrying crew.

 

Boeing's CST-100 Starliner, which can carry up to seven astronauts into
orbit, is due for its first test flight today before the first manned
flight, likely to be in 2020.

 

Meanwhile the SpaceX Dragon capsule will go through some final tests in
early 2020, and if they all go well then it too would be ready for a crewed
mission.

 

Other systems, designed to reach near-Earth space, could also reach
milestones in 2020. Blue Origin, owned by Amazon billionaire Jeff Bezos,
could be ready to take tourists on its New Shepard suborbital rocket.

 

Virgin Galactic could also be ready in 2020 to take passengers into space,
more than a decade later than founder Richard Branson originally hoped.

 

It's reported that more than 600 people have put down deposits for a Virgin
Galactic flight, with tickets costing $250,000 (£195,000).

 

"It's finally delivery time for a lot of these long promised programmes and
a chance for a whole range of technologies to really prove themselves for
the first time," says Mr Norris.

 

Protests by Extinction Rebellion have helped move climate change up the
agenda for technology companies.

 

Among those that will be under pressure are mobile phone makers. It's
estimated there are 18 billion phones lying around unused worldwide. With
around 1.3 billion phones sold in 2019, that number is growing all the time.

 

Mobile phone makers will be under pressure to make their production
processes greener and their phones more easily repairable.

 

 

The same will go for the makers of other consumer goods including TVs,
washing machines and vacuum cleaners.

 

Also watch the companies that provide mobile phone services. Vodafone has
already promised that in the UK by 2023 its networks will all run on
sustainable energy sources. Others are likely to follow suit.

 

Business travel is under pressure as well. Ben Wood, an analyst at CCS
Insight says it will become "socially unacceptable" to fly around the world
for meetings and firms will switch to virtual meetings.

 

There could also be green initiatives from the cloud computing industry as
well. Their facilities which house thousands of computer servers use huge
amounts of power.

 

Flexible displays

The launch of Samsung's first foldable phone in April did not go smoothly.
Several reviewers broke the screens and the company had to make some rapid
improvements before it went on sale in September.

 

Motorola had a more successful launch of its new Razr, although some
reviewers complained about the price. But this is unlikely to hold the
market back. Samsung is expected to launch other devices with flexible
displays next year - possibly a tablet.

 

 

TCL, the second biggest maker of TVs in China, has also promised to launch
its first mobile foldable device in 2020 and then other products quickly
after that.

 

It is betting big on the market, having invested $5.5bn in developing
flexible displays.

 

Analysts say that screens will be incorporated into all sorts of surfaces.
Smart speakers might have wrap-around displays, watch-like devices will have
straps with displays and fridge doors might have large screens.

 

Super-fast mobile

We can expect the rollout of high-speed mobile phone networks to continue.
By the end of 2019 around 40 networks in 22 countries were offering 5G
service.

 

By the end of 2020 that number will have more than doubled to to around 125
operators, says Kester Mann at CCS Insight.

 

"There could be an interesting development in the way 5G contracts are
priced. A 5G contract without a phone will cost around £30 a month and for
that you're likely to get unlimited amounts of data."

 

 

But analysts say that next year we may see prices based on the speed of the
service you want - a bit like the way home broadband is already priced.

 

Vodafone is already offering contracts based on speed in the UK. Also in the
UK, the network 3 is likely to push its 5G offering as an alternative to
broadband at home, analysts say. That might appeal to people who move around
a lot - students for example - and don't want a fixed line service.

 

Quantum computing

Will next year be another big one for quantum computing; the technology
which exploits the baffling but powerful behaviour of tiny particles such as
electrons and photons?

 

In October Google said that its quantum computer had performed a task in 200
seconds, that the fastest supercomputer would have taken 10,000 years to
complete. There was some quibbling over its achievement, but experts say it
was a big moment.

 

 

"It's a fantastic milestone," says Philipp Gerbert, a member of the deep
tech group at consultancy firm BCG: "It's clear they exceeded the classical
computer, by what margin you can debate. They disproved some lingering
doubts."

 

Mr Gerbert thinks other leaders in the field - IBM, Rigetti and IonQ - could
also clear that hurdle: "They all have excellent teams, one or two will
reach a similar stage over the next year."

 

Once the technology is proven, quantum computers could spur breakthroughs in
chemistry, pharmaceuticals and engineering.

 

Google has also promised to make its quantum computer available for use by
outsiders in 2020, but has not provided any details yet.

 

"Clearly people would love to get access to that," Mr Gerbert says.--BBC

 

 

 

 


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West Africa renames CFA franc but keeps it pegged to euro

ABIDJAN (Reuters) - West Africa’s monetary union has agreed with France to
rename its CFA franc the Eco and cut some of the financial links with Paris
that have underpinned the region’s common currency since its creation soon
World War Two.

 

 

Under the deal, the Eco will remain pegged to the euro but the African
countries in the bloc won’t have to keep 50% of their reserves in the French
Treasury and there will no longer be a French representative on the currency
union’s board.

 

Critics of the CFA have long seen it as a relic from colonial times while
proponents of the currency say it has provided financial stability in a
sometimes turbulent region.

 

“This is a historic day for West Africa,” Ivory Coast’s President Alassane
Ouattara said during a news conference with French President Emmanuel Macron
in the country’s main city Abidjan.

 

In 2017, Macron highlighted the stabilising benefits of the CFA but said it
was up to African governments to determine the future of the currency.

 

“Yes, it’s the end of certain relics of the past. Yes it’s progress ... I do
not want influence through guardianship, I do not want influence through
intrusion. That’s not the century that’s being built today,” said Macron.

 

The CFA is used in 14 African countries with a combined population of about
150 million and $235 billion of gross domestic product.

 

However, the changes will only affect the West African form of the currency
used by Benin, Burkina Faso, Guinea Bissau, Ivory Coast, Mali, Niger,
Senegal and Togo - all former French colonies except Guinea Bissau.

 

The six countries using the Central African CFA are Cameroon, Chad, Central
African Republic, Congo Republic, Equatorial Guinea and Gabon, - all former
French colonies with the exception of Equatorial Guinea.

 

The CFA’s value relative to the French franc remained unchanged from 1948
through to 1994 when it was devalued by 50% to boost exports from the
region.

 

After the devaluation, 1 French franc was worth 100 CFA and when the French
currency joined the euro zone, the fixed rate became 1 euro to 656 CFA
francs.

 

The agreement follows talks in Nigeria’s capital Abuja on Saturday between
West African leaders. Countries in the CFA bloc and other West African
nations such as Nigeria and Ghana have for decades debated creating their
own currency to promote regional trade and investment.

 

The CFA franc was born in 1945 and at the time stood for “Colonies
Francaises d’Afrique” (French Colonies in Africa).

 

It now stands for “Communaute Financiere Africaine” (African Financial
Community) in West Africa and in Central Africa it means “Cooperation
Financiere en Afrique Centrale” (Financial Cooperation in Central Africa).

 

 

 

IMF approves $2.9 bln financing package for Ethiopia

WASHINGTON (Reuters) - The International Monetary Fund’s Executive Board on
Friday approved a three-year $2.9 billion financing package to support
Ethiopia’s economic reform program, the IMF said.

 

The agreement, supported by the Fund’s Extended Credit Facility (ECF) and
Extended Fund Facility (EFF), “aims to support the authorities’
implementation of their ambitious reform agenda and catalyze concessional
donor financing,” the IMF said in a statement.

 

The Ethiopian economic reform program would focus on addressing the foreign
exchange shortage and transitioning to a more flexible exchange rate regime,
while working to strengthen oversight and management of state-owned
enterprises.

 

It would also work to free up domestic revenue for poverty-reducing and
essential infrastructure spending; financial sector reforms to support
private investment and modernize the monetary policy framework; and
strengthening of the supervisory framework and financial safety nets, the
IMF said.

 

Ethiopian Prime Minister Abiy Ahmed pledged to undertake economic reforms
when he took office last year, with a focus on leveraging private sector
investment to help provide jobs for unemployed youth among the nation’s 100
million people.

 

Foreign exchange shortages have worsened in the past five years as the
government spent heavily on infrastructure before export earnings from new
sectors such as manufacturing took off.

 

 

South African Airways has reasonable chance of survival - rescue specialist

JOHANNESBURG (Reuters) - South African Airways (SAA) has a reasonable chance
of being saved from collapse, the specialists appointed to turn around the
state-run carrier said on Friday.

 

Les Matuson, the business rescue practitioner charged with assessing the
prospects of SAA and 10,000 related jobs, said he and his team considered a
rescue to be the preferable option.

 

He said there was a “reasonable prospect” of a successful business rescue
notwithstanding the inevitable risks and challenges.

 

“(We)...are of the belief that the business rescue process will achieve a
better outcome for all stakeholders than an immediate liquidation,” he said
in a statement.

 

A spokeswoman for SAA declined to comment.

 

Earlier this month the government put SAA into business rescue - a form of
bankruptcy protection where a specialist advisor takes control of a company
to restructure it - after a strike exacerbated financial problems and left
it at risk of going bust.

 

The national carrier is one of several state entities that are deeply in the
red after nearly a decade of mismanagement and corruption, the most
troubling of which is state power company Eskom.

 

SAA’s case was seen as a test of President Cyril Ramaphosa’s resolve to
carry out badly-needed economic reforms. Ramaphosa this month promised
“drastic action” to turn around cash-strapped and highly indebted state
firms.

 

“SAA leases most of the aircraft and accordingly in a liquidation, there
will be limited assets which can be realized for distribution to creditors,”
the rescue specialists noted in their statement.

 

NOT CLEAR OF RUNWAY YET

While their decision is a vote of confidence in SAA - once Africa’s biggest
airline and a former source of patriotic pride - its future remains unclear,
as does how many jobs can be saved.

 

It has not made a profit since 2011 and has received more than 20 billion
rand ($1.4 billion) of government bailouts over the past three years.

 

Matuson said creditors had approved an extension to the deadline to present
a plan for SAA’s rescue until the end of February next year.

 

Before it is finalised, employees and creditors will need vote on the plan.
Any cuts to jobs or wages could prove sensitive.

 

Mashudu Raphetha, president of the National Transport Movement, which
represents SAA workers, told Reuters the union had met with the rescue
practitioners.

 

“We remain optimistic of a positive outcome, in these trying times,” he
said.

 

Phakmile Hlubi, spokeswoman of the National Union of Metalworkers of South
Africa, the other SAA union that went on strike last month, confirmed they
had also met with the rescue experts but gave no further comment.

 

Some analysts had questioned the affordability of a 4 billion rand lifeline
stumped up by government in order to launch the rescue plan.

 

A spokesman for the bureau of public enterprises declined to immediately
comment.

 

 

 

Angolan term allocations, Nigerian programmes emerge

LONDON (Reuters) - Angolan state oil company Sonangol finalized its term
allocations for cargoes in February while preliminary export programmes for
key Nigerian grades emerged.

 

ANGOLA

* Of the 38 cargoes planned for export in February and not deferred from
previous weeks, 3 were assigned to China’s Unipec, 6 to Sinochem and 2 to
India’s IOC.

 

* Sonangol will have 6 spot cargoes including two of Dalia crude oil and one
each of Hungo, Olombendo and Gindungo, with the final cargo apparently being
absorbed into the domestic refining system.

 

* Freight rates that have been rising again due to delays related to the
upcoming switch to cleaner fuels in January have steadied somewhat for a
supertanker eastward but remain near 2019 highs.

 

* Some potential buyers expressed scepticism about whether usual brisk
pre-holidays trading would soon kick in, as margins, market structure and
expected tender results have muted trading.

 

* Under five cargoes remain for January export.

 

NIGERIA

* Exports of Nigerian Qua Iboe and Bonny Light crude oil are both set around
230,000 barrels per day (bpd) for February, a slight rise for Qua Iboe and
fall for Bonny Light from the previous month.

 

* Suezmax shipping rates from Nigeria to Europe have persistently inched up,
dissuading buyers already reluctant to meet high asking prices near 2019
highs.

 

TENDERS

* India’s IOC issued a short tender after its last tender for crude loading
Feb. 1-10 did not secure a West African grade.

 

* India’s HPCL issued a new tender closing next week.

 

 

 

Exports of Nigerian Qua Iboe crude oil to rise, Bonny to fall in February -
programme

LONDON (Reuters) - Exports of Nigerian Qua Iboe crude oil are set to rise in
February, while those of Bonny Light will fall, according to preliminary
programmes seen by traders.

 

Exports for Qua Iboe have been set at 230,000 barrels per day (bpd) in
February versus 215,000 bpd in January. Bonny Light exports are estimated at
230,000 bpd in February compared to 276,000 bpd in January.

 

 

 

EXPLAINER: What it means for South African Airways to be in 'business
rescue'

JOHANNESBURG (Reuters) - Plagued by debt and years of mismanagement,
state-owned South African Airways (SAA) has been placed into business rescue
- South Africa’s bankruptcy protection process - in a last-ditch attempt to
save the national carrier.

 

A team of turnaround specialists appointed to try and pull the state-run
carrier back from the brink of collapse said on Friday that there was a
reasonable chance that South African Airways (SAA) can be saved.
[]nL8N28U3AO]

 

South Africa’s business rescue process, which aims to shield a business from
the demands of its creditors while an independent advisor attempts turn it
around, borrows from U.S., British, Canadian and Australian law.

 

But business rescue is uniquely South African in terms of its time tables,
ranking of preference among stakeholders and the involvement of labour.

 

Here are the key aspects of the process:

 

NEXT STEPS

Under a voluntary business rescue, a restructuring expert known as a
business rescue practitioner is appointed by the board to take over
management of the distressed company. His job is to salvage the business or
at least deliver a better return to creditors than a formal liquidation.

 

The business rescue practitioner must quickly assess the company’s
operations and, within 10 business days, convene creditors and employees to
give a view on whether there is a reasonable chance a rescue plan can
succeed.

 

If he deems there is hope, he is required to present a business rescue plan
within 25 days of his appointment.

 

That could include restructuring the business, its property and its debts.
Company assets might be sold. Or the business rescue practitioner could
simply map out an orderly winding down of the company.

 

The business rescue plan must be voted on and adopted by the affected
parties, which include creditors but also employees.

 

If the business rescue practitioner finds there is no reasonable chance a
rescue plan can succeed, he files a petition for liquidation.

 

LABOUR

South Africa’s strong labour laws extend to business rescue. Employees
continue to work for the company on the same terms and conditions and must
be consulted throughout the process.

 

Any changes to workers’ employment, including layoffs or salary and benefit
cuts, must be agreed between the company and employees in accordance with
labour laws.

 

Business rescue leaves workers in a better position than a liquidation under
which contracts are suspended and claims for salaries and retirement
benefits are capped.

 

THE PECKING ORDER

Company employees also sit near the top in the order of preference for the
payment of claims.

 

They rank just below the business rescue practitioner’s own remuneration and
the costs of the process.

 

Then come lenders with secured claims dating from before the process began,
followed by creditors who provided financing or services after the company
was placed in business rescue.

 

Last in line are legacy creditors whose unsecured claims pre-date the
process.

 

 

 

S.Africa's treasury says working to step up timeline for Eskom restructuring

JOHANNESBURG (Reuters) - South Africa’s National Treasury said on Friday it
is working to accelerate plans to restructure ailing power utility Eskom
after ratings agency Fitch opted to keep the sovereign credit rating on
hold, with a negative outlook.

 

“National Treasury, in partnership with the Department of Public
Enterprises, is instituting a series of measures to bring discipline to the
utility’s finances, and to step up the timeline for restructuring,” it said
in a statement responding to Fitch’s decision.

 

Fitch warned on Wednesday failure to form a credible plan to stabilise
government debt - exacerbated by bailouts for troubled state run firms like
Eskom - could prompt a downgrade, and it is regularly cited as one of the
key risks to South Africa’s economy.

 

 

S.Africa's rand flat, stocks subdued in thin holiday trade

JOHANNESBURG (Reuters) - South Africa’s rand ended flat on Friday in thin
trade ahead of the holidays, failing to add to its previous gains.

 

At 1530 GMT, the rand was flat at 14.2300 per dollar, reflecting muted
interest in global currencies and the greenback and remaining in striking
distance of the 14.20 technical resistance mark traders see as the hurdle
for further gains.

 

For the week, the currency was up close to 2% after benefiting from a
backdrop of mildly positive global sentiment as China and the United States
looked close to reaching a partial agreement on trade tariffs.

 

Bonds were firmer, with the yield on the benchmark 2026 government issue
down 3.5 basis points at 8.245%.

 

On the bourse, stocks were flat alongside emerging markets.

 

The JSE Top-40 Index was down 0.23% at 51,151 points while the broader
All-Share Index slipped 0.26% to 57,411.

 

Retailer Foschini was at the bottom of the blue-chip index, falling 2% to
154.24 rand. In banks, Absa was the biggest loser, down 1.35% at 149.89
rand.

 

Preventing further losses were gold miners. Gold Fields was up 1.6% at 88.11
rand.

 

 

Remgro-backed telecoms firm speeds up broadband expansion after $1 bln debt
deal

JOHANNESBURG (Reuters) - A South African telecoms company backed by
investment firm Remgro plans to expand its high-speed broadband network
after completing a 16 billion rand ($1 billion) debt restructuring this
week.

 

The building of fibre optic networks in upmarket neighbourhoods has
intensified in the past five years, but has been confined to cities due to
the high cost of laying down the infrastructure and the dominance of mobile
internet.

 

But as the price of fixed-line internet comes down and more customers seek
faster connection speeds than those offered by 4G mobile technology, the
chance to grab a bigger slice of the fibre market has been seized by
Community Investment Venture Holdings (CIVH).

 

With the backing of $7 billion investment titan Remgro, which controls 54.4%
of the company, CIVH has over the past 24 months acquired two major fibre
providers, Dark Fibre Africa (FDA) and Vumatel, in an effort to tackle the
dominance of rivals such as Telkom and SEACOM.

 

The FTTX Council Africa, the regional arm of global fibre industry body,
says the number of South African households with a fibre connection surged
to 280,000 in 2018 from 89,000 in 2017, while the number of ‘homes passed’,
or the potential number of premises a service provider can hook up to its
network, more than doubled to 933,000 in the same period.

 

“We have passed 650,000 homes to date, and are planning a further 850,000 in
the next 5 years. The comprehensive debt package is sufficient to fund the
planned network rollout,” the company said in an interview.

 

Telkom has 458,905 homes passed, up 16.7% from 2018.

 

According to Statistics South Africa, about 65% of South Africans households
have access to the internet in some way, with only 10% accessing internet at
home through a fixed-line service.

 

The debt restructuring and refinancing, joint-lead by Standard Bank, sees
CIHV’s debt combined into one package that the company says will allow it to
“move cash around the group and utilise the debt where the capex
opportunities are”.

 

“After the acquisition of Vumatel we had to restructure the balance sheet,”
the company said, adding it had no other acquisitions planned in the near
future, but that capital would be used to rollout more fibre.

 

CIVH is building up its war chest at a time when Telkom is turning its focus
away from fibre to mobile, with its recent takeover bid for Cell C, the
country’s third-biggest mobile carrier. Telkom is also cutting its spending
on fibre by more than a third, as of September 2019.

 

 

 

Deutsche Bank whistleblower hits back at regulator

A whistleblower who highlighted suspicious activity at a Dubai firm has hit
back after the publication of a damaging finding against her.

 

In October Anna Waterhouse said Dubai regulators had failed to investigate
"suspicious circumstances" at Kaloti, the emirate's biggest gold refiner.

 

Subsequently the regulator found she "acted without integrity" in another
matter.

 

That finding was designed to discredit her, Ms Waterhouse has told the BBC.

 

The DFSA said it had followed "full and fair process". Both Kaloti and the
DFSA have denied any wrongdoing.

 

Ms Waterhouse, a former general counsel at Deutsche Bank, revealed to the
BBC's Panorama on 28 October that the Dubai Financial Services Authority
(DFSA) had failed to investigate a "catalogue of suspicious circumstances"
at Kaloti.

 

Kaloti was used by a drug gang to launder money, Panorama found.

 

But less than eight weeks after the film was broadcast, the DFSA published a
finding in a separate matter claiming Ms Waterhouse had "acted without
integrity".

 

'Clear message'

Ms Waterhouse sought to appeal against that finding and prevent it from from
being published. But permission to appeal was refused.

 

"With this decision the Dubai Financial Services Authority has sent a very
loud, very clear message to the market about what happens to whistleblowers
in their jurisdiction. They get punished," she said.

 

"I reported serious money laundering suspicions about Kaloti and financial
transactions facilitated by my former employer.

 

"Instead of investigating the suspected wrongdoing, the DFSA turned on me
and have campaigned for years to discredit and undermine me."

 

'Wheelbarrows of cash'

As head of compliance and general counsel at Deutsche Bank in the Middle
East, Ms Waterhouse was legally and ethically obliged to report suspicions
of money laundering to the authorities.

 

Colleagues told her in 2012 that Kaloti was withdrawing sums of cash that
were so large the money had to be transported in wheelbarrows.

 

Years later, a joint investigation by BBC Panorama and the French media
agency Premieres Lignes discovered that Kaloti had also used cash to pay for
3.6 tonnes of gold from a gang that laundered money from the sale of illegal
drugs all over Europe.

 

Ms Waterhouse filed suspicious activity reports with the Dubai Financial
Services Authority and the central bank of the United Arab Emirates.

 

That prompted the DFSA to launch investigations, but its focus quickly
turned not on Kaloti, but onto her and her employer.

 

Breach of rules

The DFSA investigation eventually found bankers in Deutsche Bank's Dubai
office had broken regulations in a separate case involving its private
wealth division.

 

No clients lost money but the breach of the rules meant the bank faced
serious sanctions.

 

However, Ms Waterhouse was the only manager at Deutsche Bank sanctioned - a
finding which she has been fighting through the courts for six years.

 

On 10 December she was unable for medical reasons to attend a hearing of the
DFSA's Financial Markets Tribunal, sitting in London, where she was seeking
permission to appeal the DFSA's decision.

 

She applied for a postponement to the Dubai courts, headed by retired
British judge Sir Jeremy Cooke, attaching a medical certificate. This was
refused. The DFSA said the Court determined that the medical certificate
supplied by Ms Waterhouse was "wholly inadequate to support the question of
adjournment."

 

'Fair process'

The DFSA told the BBC the release of the decision was "not in any way linked
to the story on BBC Panorama".

 

It said the decision represented "the final outcome of a full and fair
process" in which Ms Waterhouse had availed herself of avenues of review and
appeal.

 

Following the publication of the DFSA's decision, the Dubai court has also
awarded legal costs against her, likely to run into tens of thousands of
pounds.

 

However Ms Waterhouse said the hearing her case was staffed and paid for by
the DFSA. "The process is inherently unfair," she said.--BBC

 

 

 

Whirlpool: MPs call on washing machine firm to offer swift refunds

MPs have called on Whirlpool to offer refunds or "swift compensation" as it
recalls 519,000 washing machines.

 

A cross-party group on consumer protection said customers had been "severely
let down" owing to the delay until machines are fixed or replaced.

 

The former head of the Commons Business Committee has also demanded the
company give refunds to those who want them.

 

But the company said its priority was to ensure potentially dangerous
appliances were removed from homes.

 

About 20% of the Hotpoint and Indesit washing machines sold since 2014 are
affected by a safety fault. Up to 519,000 washing machines sold in the UK
need to be recalled, a process that will start in early January.

 

Seventy-nine fires are thought to have been caused by an overheating door
locking system, a fault which develops over time, according to Whirlpool,
which owns the brands.

 

Whirlpool washing machine danger revealed as recall launched

'I've called Whirlpool 40 times and got nowhere'

Yvonne Fovargue MP, who chaired the Consumer Protection All Party
Parliamentary Group (APPG) in the last Parliament and Carolyn Harris MP, who
chaired the Electrical Safety APPG in the last Parliament, said that
Whirlpool appeared to have learned little from its handling of a safety
problem regarding tumble dryers,

 

"Whirlpool's advice to affected customers simply not to use the machines
until repaired or replaced is wholly inadequate, particularly in the busy
holiday period when families are at home," said Ms Fovargue.

 

"It appears that once again customer trust is being abused and eroded.
Whirlpool should swiftly compensate customers who have been severely let
down."

 

Advice for owners

Whirlpool has set up a model checker online. Owners of Hotpoint and Indesit
washing machines bought since October 2014 will need to enter the model and
serial number of their appliance - found inside the door or on the back - to
see if it is one of those affected.

 

There is also a free helpline, open every day, available on 0800 316 1442.

 

Meanwhile, Rachel Reeves, who chaired the Business Committee in the last
Parliament, which investigated the Whirlpool saga, called for those affected
by the washing machine recall to be offered a refund, rather than just a
repair or replacement.

 

"I understand Whirlpool is refusing to offer refunds to consumers hit by
this latest safety problem in what seems to be a never-ending saga," she
said.

 

"That refusal will further damage consumer confidence and shows a lack of
respect for the people on whom Whirlpool's profits depend."

 

The company said that a refund would not ensure the fire-prone machines were
withdrawn from people's homes, which was its priority. It has put in a range
of plans, including hiring engineers and building up call centre staffing.

 

The company said it was in contact with various second-hand sales platforms
to alert them to recall and ensure the affected products were not sold, as
it had for the tumble dryer recall. It said very few of these appliances
would still be in stock with regular retailers and should not be sold.--BBC

 

 

 

Nord Stream 2: Germany and Russia decry US sanctions

Germany and Russia have reacted angrily to sanctions approved by US
President Donald Trump on a gas pipeline between the two countries.

 

The sanctions target firms building Nord Stream 2, an undersea pipeline that
will allow Russia to increase gas exports to Germany.

 

The US considers it a security risk.

 

But Germany accused Washington of interfering in its internal affairs, while
Russia and EU officials also criticised the sanctions.

 

Congress voted through the measures as part of a defence bill last week and
the legislation, which described the pipeline as a "tool of coercion", was
signed off by Mr Trump on Friday.

 

Why is the US against the pipeline?

The almost $11bn (£8.4bn) Nord Stream 2 project has infuriated the US, with
both Republican and Democratic lawmakers opposing it.

 

The Trump administration fears the pipeline will tighten Russia's grip over
Europe's energy supply and reduce its own share of the lucrative European
market for American liquefied natural gas.

 

Skateboarding protesters occupy gas pipeline in Germany

EU agrees tighter rules for Russian pipeline

President Trump has said the 1,225km (760-mile) pipeline, owned by Russia's
state-owned gas company, Gazprom, could turn Germany into a "hostage of
Russia".

 

How has Germany reacted?

Speaking on German TV, Finance Minister Olaf Scholz said the sanctions were
an infringement of sovereignty.

 

"It is up to the companies involved in the construction of the pipeline to
take the next decisions," he said.

 

German Foreign Minister Heiko Maas has said the sanctions amount to
"interference in autonomous decisions taken in Europe".

 

What about the EU and Russia?

The US sanctions have also angered Russia and the European Union, which says
it should be able to decide its own energy policies.

 

"As a matter of principle, the EU opposes the imposition of sanctions
against EU companies conducting legitimate business," a spokesman for the
trading bloc told AFP news agency on Saturday.

 

Russia's foreign ministry also strongly opposed the move, with ministry
spokeswoman Maria Zakharova accusing Washington of promoting an "ideology"
that hinders global competition.

 

The consortium behind Nord Stream 2 confirmed that it would build the
pipeline as soon as possible, despite the sanctions.

 

"Completing the project is essential for European supply security. We,
together with the companies supporting the project, will work on finishing
the pipeline as soon as possible," it said.

 

However, Allseas, a Swiss-Dutch company involved in the project, said it had
suspended its pipe-laying activities in anticipation of the sanctions.

 

Why is Nord Stream 2 so controversial?

For years EU member states have been concerned about the bloc's reliance on
Russian gas.

 

Russia currently supplies about 40% of the EU's gas supplies - just ahead of
Norway, which is not in the EU but takes part in its single market. The new
pipeline will increase the amount of gas going under the Baltic to 55
billion cubic metres per year.

 

Disagreements among EU nations were so strong that, earlier this year, they
even threatened to derail the project entirely.

 

The bloc eventually agreed to strengthen regulations against Nord Stream 2,
rather than stop it completely, and to bring it under European control.

 

Businesses in Germany, meanwhile, have invested heavily in the project.
Chancellor Merkel has tried to assure Central and Eastern European states
that the pipeline would not make Germany reliant on Russia for energy.

 

There is concern in other quarters, too. In May, climate activists opposing
the use of fossil fuels occupied part of the Nord Stream 2 gas pipeline in
Germany.

 

The demonstrators, who said the project would be more detrimental to the
environment than the authorities had claimed, began skateboarding inside the
pipes.

 

Police said at least five people had occupied the pipes near Wrangelsburg in
northern Germany.--BBC

 

 

UK approves £4bn US takeover of defence company Cobham

The government has approved a US private equity firm's takeover of UK
defence and aerospace company Cobham.

 

Advent International made a £4bn offer to buy Cobham in July, but it was
delayed when the government intervened over national security concerns.

 

The government announced its approval of the deal late on Friday night -
which the firm's founding family said was "timed to avoid scrutiny".

 

PM Boris Johnson said the UK remained a "dynamic" part of the defence
industry.

 

Cobham, which employs 10,000 people, has extensive contracts with the
British military and is seen as a world leader in air-to-air refuelling
technology.

 

The firm, based in Wimborne, Dorset, also makes electronic warfare systems
and communications for military vehicles.

 

Its expertise played a significant role in the Falklands War, allowing the
Royal Air Force to attack the remote Port Stanley airfield.

 

Defence experts said its role in air-to-air refuelling was essential for
modern warfare and could raise national security issues if the company was
sold.

 

Shareholders approved Advent's offer in August, but a month later the
government intervened in the takeover, citing national security concerns.

 

In a statement on Friday, Business Secretary Andrea Leadsom said she was
satisfied the risks that had been identified had been mitigated "to an
acceptable level" - and allowed the deal to go ahead.

 

Mrs Leadsom said the decision had been "meticulously thought over" and came
after she took advice from the defence secretary and the deputy national
security adviser.

 

The business secretary added sensitive government information would
continued to be protected under the new owner and existing contracts would
be honoured.

 

The company is also obliged to give the government prior notice of any plans
to sell the whole, or elements of, Cobham's business.

 

'Deeply concerning'

Lady Nadine Cobham - part of the family which set up the UK firm - called
the decision "deeply disappointing" and criticised the timing of the
decision.

 

She said it was "cynically timed to avoid scrutiny on the weekend before
Christmas", adding: "In one of its first major economic decisions, the
government is not taking back control so much as handing it away.

 

"In Cobham we stand to lose yet another great British defence manufacturer
to foreign ownership."

 

Just before 10pm on a Friday is an odd time for this kind of thing to be
announced.

 

One defence analyst remarked that it was as if the government rather wanted
no-one to notice what had happened.

 

The curious timing may actually draw more attention than if it had been done
at a more normal hour - few doubted the government would block the deal, and
shareholders in Cobham have already voted overwhelmingly in favour.

 

It says something of the sensitive nature of Cobham's business that much of
the published version of the competition regulator's report on the takeover
was simply blacked out.

 

In one unedited passage of the report, the Ministry of Defence said if the
deal went ahead there was "a risk that the institutional framework and
safeguards required by the government's security framework may be
undermined".

 

Sir Ed Davey, acting leader of the Liberal Democrats, said the announcement
was "deeply concerning" and said "we have yet to see evidence" that concerns
over national security had been mitigated.

 

"If Boris Johnson's government are happy to sell off a leading UK defence
and aerospace company to Trump's America, how can we expect his government
to protect our defence and manufacturing sectors, not to mention every other
sector of our economy, as they negotiate trade deals after Brexit?" he
added.

 

When asked if he was comfortable with the takeover, the prime minister said:
"I think it's very important that we should have an open and dynamic market
economy."

 

Mr Johnson added: "A lot of checks have been gone through to make sure that
in that particular case, all the security issues that might be raised can be
satisfied and the UK will continue to be a very, very creative and dynamic
contributor to that section of industry and all others."

 

Shonnel Malani, a partner at Advent, said the company took the takeover
"seriously".

 

"We are confident the transaction and undertakings being given on national
security, jobs and future investment, provide important long-term assurances
for both Cobham's employees and customers, particularly in the UK and also
globally," Mr Malani added.

 

Cobham plc is a group of defence and technology businesses which started out
as a family firm founded by Sir Alan Cobham.

 

Sir Alan became a flying instructor in 1918 after volunteering to join the
Royal Air Force during World War One.

 

He received a knighthood from King George V in 1926 for his pioneering work
in aviation.

 

Sir Alan became a household name after devising Cobham's Flying Circus in
the early 1930s. The aeronautical acrobatics show toured England and South
Africa.

 

He then went on to focus on air-to-air refuelling and formed Flight
Refuelling Limited in 1934, which developed into Cobham plc as it is known
today.

 

Aside from aviation, Cobham's innovations include lightweight tanks, radar
technology for maritime defence and spacecraft technology.--BBC

 

 

 

Andrew Bailey appointed as new Bank of England governor

Andrew Bailey has been appointed as the next governor of the Bank of
England.

 

Mr Bailey, aged 60, is currently chief executive of the Financial Conduct
Authority (FCA), the City watchdog.

 

He will become the 121st governor of the Bank of England on 16 March, taking
over from Mark Carney, and will serve a full eight-year term.

 

The search for the new governor began in April and Mr Bailey, who spent more
than 30 years at the Bank, was seen as an early favourite for the job.

 

Andrew Bailey's 'slow and steady' rise to power

What does the Bank of England governor do?

Faisal Islam: Andrew Bailey's brush with animal spirits

However, the FCA has faced criticism in recent months over its regulatory
scrutiny of the flagship fund of one of the UK's best known money managers,
Neil Woodford. The fund was suspended in June and eventually closed, with
investors expected to lose large sums of money.

 

In addition, the FCA's report into Royal Bank of Scotland's treatment of
small business by its controversial restructuring division was called a
"whitewash" after it recommended taking no further action against the bank.

 

Five things the Bank of England does

It sets the official interest rate, which determines the cost of borrowing
money

It supervises the financial system, seeking to ensure it is stable and no
banks are running out of cash

It acts as the government's bank and a lender of last resort in times of
financial difficulty

It issues the UK's banknotes (coins are issued by the Royal Mint)

It stores the UK's gold reserves, as well as those of other central banks

Announcing the decision to appoint Mr Bailey, Chancellor Sajid Javid said he
was "the stand-out candidate in a competitive field".

 

"He is the right person to lead the Bank as we forge a new future outside
the EU and level-up opportunity across the country," he added.

 

 

Media captionWhat does the Bank of England governor do? The BBC's Dharshini
David explains

Accepting the role, Mr Bailey said it was "a tremendous honour" to be
chosen.

 

"The Bank has a very important job and, as governor, I will continue the
work that Mark Carney has done to ensure that it has the public interest at
the heart of everything it does."

 

CBI chief economist Rain Newton-Smith congratulated Mr Bailey, saying: "His
strong experience, both in Threadneedle Street and at the Financial Conduct
Authority, means he is particularly well placed to steer the British economy
through the new course it will take after Brexit and through challenging
global economic times."

 

But shadow chancellor John McDonnell was critical of the appointment,
saying: "As an establishment figure with what some consider is a less than
inspiring record at the FCA, Andrew Bailey will need to demonstrate early
that he appreciates the need to address the deep structural problems of our
economy and, like Mark Carney, understands the climate change threat."

 

Mr Carney had been due to step down on 31 January, but has now agreed to
stay on until 15 March in order to provide for a smooth transition.

 

Mr Carney described Mr Bailey as "an extraordinary public servant".

 

"Andrew brings unparalleled experience, built over three decades of
dedicated service across all policy areas of the Bank," he said.

 

The decision means hopes that the Bank could have been led by a female
governor for the first time in its history have been dashed.

 

Minouche Shafik, a former member of the Bank of England's interest
rate-setting committee, had been hotly tipped for the role.

 

Mr Bailey has spent almost the entirety of his career at the Bank of
England, which he joined in 1985.

 

He has held a number of roles including chief cashier, which meant that his
signature appeared on all bank notes issued by the Bank of England.

 

Mr Bailey was chief cashier during the financial crisis when, he recalled in
an interview: "The [RBS] treasurer, John Cummins, came in and I thought he
was going to have a heart attack... and he looked at me and said: 'I need
£25bn today, can you do it?'. I said: 'Yes, I can do that'."

 

Mr Bailey was also a deputy governor and head of the Bank's prudential
regulation division, before joining the FCA as its chief executive in 2016.

 

Andrew Bailey was the early frontrunner for one of the most powerful
positions in the UK.

 

However, his time as head of the City watchdog, the Financial Conduct
Authority, was peppered with a number of high-profile controversies -
including its handling of complaints into RBS's treatment of small
businesses in the aftermath of the financial crisis - which many thought
might have harmed his chances for the top job.

 

He is highly thought of by colleagues and civil servants.

 

Former Permanent Treasury Secretary Lord McPherson described him as the most
able and competent Bank of England official he had ever worked with, adding
that while Bailey would not make waves for the government he had the
backbone to stand up to it.

 

Mr Bailey, who will be paid £495,000 a year, is taking over at a fraught
time for the Bank of England.

 

It emerged this week that an audio feed of sensitive market information from
the Bank had been leaked to fund managers.

 

The Bank admitted one of its suppliers had "misused" the feed which gave
traders early access to information that could potentially generate large
sums of money.

 

The matter has been referred to the FCA, which Mr Bailey currently leads.

 

The City watchdog said it was "looking at the issue".

 

PA reported that the prime minister's official spokesman, when asked whether
Brexit was a factor in Mr Bailey's appointment, said: "The way it works is
the chancellor recommends candidates to the PM, the PM then advises the
Queen."

 

When pressed on the issue, the spokesman added: "I just went through the
process and the prime minister thinks he will do an excellent job."--BBC

 

 

 

 

 


 

 


 

INVESTORS DIARY 2019

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
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been compiled from sources believed to be reliable, but no representation or
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opinions expressed and recommendations made are subject to change without
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for guideline purposes only and sourced from third parties.

 


 

 


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