Major International Business Headlines Brief::: 30 January 2019

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Major International Business Headlines Brief::: 30 January 2019

 


 

 


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*  South Africa to debate whether to split Eskom - Gordhan

*  Rwanda cabinet extends central bank governor's term by six years

*  Kenya central bank holds main lending rate at 9.0 pct

*  Norwegian Air seeks cash injection

*  Five arrested over Brazil dam collapse

*  US firms seek changes to UK standards on beef and drugs

*  Treasury agency had role in controversial RBS unit GRG

*  Yahoo data breach payout blocked by judge

*  US hits 'corrupt' Venezuela oil firm PDVSA with sanctions

*  George Fernandes: The man who threw out Coca-Cola and IBM from India

*  Ackermans launches its own R1499 smartphone

*  Pound nurses losses on renewed Brexit uncertainty, dollar awaits Fed

*  Knotch raises $25M to help marketers collect data about their content

*  Yes, Criminals Use Bitcoin: They Also Use Cars, Cash, Mobile Phones, and
the Web


*  Cryptocurrency Thefts and Scams Raked in 300% More Profit Last Year than
2017

*  European shares hold gains ahead of events blizzard

 

 


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South Africa to debate whether to split Eskom - Gordhan

JOHANNESBURG (Reuters) - The South African government will soon debate
whether to split up state power firm Eskom to make it financially viable,
Public Enterprises Minister Pravin Gordhan said on Tuesday.

 

Eskom is vital to the health of Africa’s most industrialised economy as it
supplies more than 90 percent of its power, but it is drowning in debt after
a decade of steep financial decline.

 

Experts hired by President Cyril Ramaphosa to help revive the ailing company
are proposing splitting it up into three state-owned entities responsible
for power generation, distribution and transmission, sources familiar with
the matter told Reuters last week.

 

Ramaphosa is due to meet the experts this week, and Eskom’s fate will also
be debated at a cabinet meeting starting on Wednesday.

 

“Should Eskom be unbundled into generation, transmission and distribution,
as is the worldwide practice? That is a debate we are going to have soon.
And it is going to go beyond a debate because we need very fast movement,”
Gordhan said at a business conference outside Johannesburg.

 

Gordhan, who also oversees struggling state firms Denel and South African
Airways, added that the government would be willing to sell stakes in state
firms to private investors “once we get to a level of stability in some of
these outfits”.

 

“The fiscus doesn’t have space for endless bailouts,” referring to the
budget.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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Rwanda cabinet extends central bank governor's term by six years

KIGALI (Reuters) - Rwanda’s cabinet has approved an extension of six years
to the term of the country’s central bank governor.

 

A statement from the prime minister’s office late on Monday said that John
Rwangobwa’s term had been extended. He was appointed as governor in 2013.

 

Rwangobwa, who worked with the Rwanda Revenue Authority before joining the
ministry of finance, is a trained accountant who has been credited with
helping to maintain stability in the economy during his first term.

 

 

Kenya central bank holds main lending rate at 9.0 pct

NAIROBI (Reuters) - Kenya’s central bank held its benchmark lending rate at
9.0 percent on Monday, the bank’s monetary policy committee said, saying
inflation was anchored within the target range.

 

Policymakers said the decision, the third hold in a row since September, was
also supported by their view that the economy was “operating close to its
potential”, they said.

 

Year-on-year inflation was 5.7 percent last month, well within the
government’s preferred band of 2.5-7.5 percent. Economic growth accelerated
to 6 percent in the third quarter of last year, up from 4.7 percent a year
earlier.

 

The committee, however, warned of the potential for higher volatility in the
global financial markets this year, mainly due to slowing global economic
growth, Brexit and a trade war between the U.S. and China.

 

 

Norwegian Air seeks cash injection

Norwegian Air wants to raise 3bn Norwegian kroner (£268m) through a rights
issue to improve its finances.

 

The news comes as the company announced that its preliminary earnings for
2018 showed an operating loss of roughly 3.8bn kroner.

 

The budget carrier said it was not in talks with any potential buyers after
British Airways owner IAG abandoned its plans to buy it last week.

 

In early trading on Tuesday, the company's shares plunged by 16%.

 

Billionaire John Fredriksen and the airline's chief executive Bjorn Kjos and
chairman Bjorn Kise have all agreed to underwrite the issue.

 

Mr Kjos explained that the airline was going to change its strategic focus
from growth to making cost savings.

 

"We will now get in place a strengthened balance sheet that supports the
further development of the company," he said.

 

In a statement, the airline added that this would "increase its
competitiveness and stand-alone financial strength".

 

The carrier confirmed that flights were unaffected by the news.

 

A rights issue happens when existing shareholders of a company are offered
the chance to buy new shares at a special price.

 

Norwegian is in a race against time. The company is nothing if not ambitious
- and it has certainly made an impact in Europe's cut-throat aviation
market. But it needs to become consistently profitable, before the money
runs out.

 

Norwegian's chief executive, Bjorn Kjos, has overseen a major expansion of
the airline over the past five years, doubling the size of its fleet and
expanding its route network dramatically. But his biggest gambit has been a
major play into the low-cost long-haul market.

 

Cheap transatlantic travel is not a new idea: Freddie Laker tried it in the
1970s.

 

But it was only with the development of highly fuel-efficient aircraft like
the Boeing 787 Dreamliner - which Norwegian is using - and the Airbus A350
that the idea really took off.

 

Now others are following Norwegian's example.

 

But all of this has come at a price. Norwegian has debts of $3.5bn and
expects to rack up a sizeable loss for 2018.

 

Problems with engines on its shiny new Dreamliners clearly haven't helped
either.

 

Small wonder Mr Kjos now says the carrier will focus on cost-cutting and
profitability, rather than growth. His airline has shaken up the market -
now it needs to show it can consistently make money from it as well.

 

Last year, Norwegian Air launched the first-ever budget flight from London
to South America

 

Fares on the 14-hour trip to Buenos Aires started from £259 one-way.

 

The company started as a small regional airline flying between Bergen and
Trondheim in 1993.

 

Mr Kjos turned it into Scandinavia's largest airline and the third-biggest
budget carrier in Europe.

 

Norwegian's price strategy has been based on flying a young fleet of
aircraft such as Boeing's 787 Dreamliner, which burn less fuel per passenger
compared with other long-haul aircraft.

 

These offer passengers a more upmarket experience than they may have come to
expect from a budget airline, with modern interiors and the benefit of free
wi-fi on all routes in the future.

 

It flies from Gatwick, Manchester and Edinburgh airports to more than 150
destinations across Europe and worldwide including Boston, Dubai and San
Francisco.

 

But in the second quarter of last year, the Civil Aviation Authority's most
recent data, Norwegian was the airline with the second highest number of
complaints from UK passengers, of those still in business.

 

It received 526 complaints per million travellers carried in that
three-month period to June 2018, behind Tui Airways with 663, but ahead of
TAP Portugal, with 430, and Ryanair, with 319.

 

Small Planet Airlines, which had its licence suspended by the CAA in
November after filing for insolvency the previous month, had received 27,998
complaints per million customers in the same period.

 

Budget airlines have had differing fortunes in recent months.

 

In November, EasyJet announced a 41% rise in pre-tax profits to £578m for
the year to 30 September.

 

And earlier this month, it said that it expected its full-year profits to
meet City forecasts.

 

However, Ryanair cut its profit forecast, blaming lower-than-expected air
fares.--BBC

 

 

 

Five arrested over Brazil dam collapse

Police in Brazil have arrested five people as part of an investigation into
Friday's dam collapse in Brumadinho.

 

At least 65 people died when toxic sludge engulfed a company canteen and
neighbouring residential buildings.

 

Prosecutors in Brazil say three of those arrested were officials from the
mining company Vale, whose responsibilities included dealing with
environmental impact licences.

 

Vale said it was co-operating with prosecutors.

 

The company is the world's biggest producer of iron ore and nickel.

 

Two engineers working for a subsidiary company were arrested in Sao Paulo.

 

All five can be detained for 30 days and will be questioned by investigators
in Belo Horizonte.

 

Vale halts bonuses after dam deaths

Anger grows towards Brazil dam mine firm

Rescuers are continuing to search for survivors in Brumadinho. Nearly 300
people are still missing and there is little hope they will be found alive.

 

On Monday, protesters gathered outside Vale's corporate headquarters in Rio
de Janeiro and daubed slogans including "Murderers!" on its walls.

 

In a statement following the arrests, Vale said: "With regards to the
warrants served this morning, Vale informs that it is fully co-operating
with the authorities.

 

"Vale will continue to support the investigations in order to determine the
facts, in addition to the unconditional support to the families."

 

Vale's share price plunged by nearly 25% on Monday on the Brazilian stock
market.--BBC

 

 

 

US firms seek changes to UK standards on beef and drugs

US lobby groups for agriculture and pharmaceutical firms want UK standards
changed to be closer to those of the US in a post-Brexit trade deal.

 

The meat lobby wants the sale of growth hormone-fed beef, currently banned
in the UK and EU, to be allowed in the UK.

 

The drugs company lobby wants changes to the NHS drugs approval process to
allow it to buy more of US drugs.

 

They are also asking US officials - who will hold a hearing later - to seek
lower tariffs on agricultural goods.

 

The farming groups say any deal should move away from EU standards,
including rules governing genetically modified crops, antibiotics in meats,
and pesticides and herbicides, such as glyphosate.

 

Technology groups are also setting out their wishlists for any pact.
Companies in this sector are against the UK's proposed digital tax.

 

The UK government has promised to look at ways of taxing US technology
giants, such as Amazon and Google, which critics say do not pay their fair
share of tax in the UK and therefore operate at an unfair advantage to
physical companies.

 

'Once-in-a-lifetime' opportunity

The lobby groups' priorities were outlined in more than 130 comments
submitted to the office of the US Trade Representative.

 

The office solicited the feedback to help develop US goals as it prepares to
start trade talks with the UK after Brexit.

 

It is hosting a hearing in Washington on Tuesday on the subject.

 

Brexit: US ambassador to UK warns on trade deal

Will a US-UK free trade deal ever happen?

US companies - especially in the agricultural sector - said they hoped the
UK would prove more flexible than the EU.

 

UK negotiations could represent "a once-in-a-lifetime opportunity", the
National Grain and Feed Association and North American Export Grain
Association wrote.

 

The groups said a new deal could create a trans-Atlantic market "that can
act as a bastion against the EU's precautionary advances and its ongoing
aggressive attempts to spread its influence around the globe".

 

Here is a summary of goals for key sectors:

 

Agriculture

US business groups from the agricultural sector have been among the most
vocal, amounting to nearly a third of all comments.

 

The groups, which as well as meat, drug and technology firms include
producers of olive oil, wine, nuts, fruit, and dairy products, say they want
to see the UK reduce tariffs on food products. They also want to limit
geographic labelling rules, such as those that bar US companies from using
terms such as Prosecco.

 

The Animal Health Institute, which produces animal antibiotics, was among
several groups that said it would not support a deal that did not address
demands by the US agricultural sector.

 

"We have noted with concern statements by certain UK officials indicating a
desire to exclude the agricultural sector from the negotiation and an
intention of maintaining regulatory harmonisation with the European Union,"
it said.

 

"Should the UK adopt such policies, we see little basis for the negotiation
of a bilateral trade agreement."

 

Health

The pharmaceutical industry is also gearing up for negotiations to start.

 

PhRMA, which represents drug makers in the US such as AbbVie Merck and
Novartis, said it wanted a deal to address the barriers to access it
currently faces in the UK, pointing to items such as government price
controls.

 

It heavily criticised the current NHS drug approval system, pointing to the
cap on the price of drugs as too restrictive, and highlighting insufficient
healthcare budgets and "rigid" national processes.

 

The organisation, as well as some other groups, are also hoping to secure
patent protections for certain types of drugs for at least 12 years, among
other demands.

 

Technology

US firms also want to bar a proposed UK tax on digital services and prohibit
rules requiring that data be stored locally.

 

Budget 2018: Who will pay the Digital Services Tax?

US attacks UK plan for digital services tax on tech giants

There is also widespread support to push the UK raise the amount that
triggers customs duties from £135 closer to the US level of $800 - more than
£600.

 

Such a move would make it easier for small businesses to export to the UK,
said companies including e-commerce site Etsy.

 

Many of the demands in the tech sector also surfaced during negotiations of
the trade agreement between the US, Mexico and Canada.--BBC

 

 

 

Treasury agency had role in controversial RBS unit GRG

Evidence has emerged of a government agency's role in the Royal Bank of
Scotland's (RBS) controversial Global Restructuring Group (GRG).

 

The Asset Protection Agency influenced GRG's strategy including decisions
that determined business customers' fortunes, the BBC has learnt.

 

Separate court evidence suggests the agency told RBS to withdraw customer
support, when the bank did not want to.

 

RBS said it disagreed with the claims while the Treasury declined to
comment.

 

More than 16,000 small business customers were transferred to RBS's Global
Restructuring Group. In what MPs have referred to as the worst scandal since
the financial crash, GRG was found in a leaked official report for the
Financial Conduct Authority to have mistreated thousands of business
customers. Many of them were ruined and others lost not only their
livelihoods but their marriages and their physical and mental health.

 

Oliver Morley Estates, an industrial warehousing company based in the north
west of England, which is taking legal action against RBS, suggested GRG
relationship managers rejected a proposal to re-finance much of the business
because of the Asset Protection Agency's (APA) views.

 

Emails quoted in court reveal that RBS wanted to support the rescue
proposal, arranged by founder Oliver Morley to re-finance more than £70m of
loans to his property group with the help of another bank, believing it to
be "the best option for the bank".

 

However, the Treasury's Asset Protection Agency blocked the bank from doing
so, according to evidence disclosed in court. Instead it wanted the property
to be sold to RBS's own property division, West Register.

 

'Craziest decision yet'

The court heard RBS managers saw the APA's view as "certainly their craziest
decision yet". Yet RBS staff thought "the APA's views are clear and unlikely
to change."

 

Under the Asset Protection Scheme, part of the government bailout in the
financial crisis, loans worth £282bn were insured against default by
taxpayers, limiting the potential losses to which RBS was exposed.

 

Between 2009 and 2012 the Asset Protection Agency staff were in charge of
overseeing the scheme. Its stated goal was "to maximize the value of the
assets in the scheme and reduce the probability of payouts".

 

Hugh Sims QC, for the former GRG customer, Oliver Morley, told the High
Court that internal bank emails disclosed as part of civil proceedings also
suggested that within GRG "things had become increasingly personal."

 

In one internal email exchange discussing Mr Morley's attempts to hold on to
his business, GRG staff say "the borrower is toast". In another they are
looking forward to "the Morley massacre" the following Tuesday.

 

In another email discussing their proposal to force him to sell his
properties to the banks' own property division, GRG staff say if he
disagrees "it's his head on a spike", the court heard.

 

RBS said it "fundamentally disagrees with Mr Morley's claims and does not
believe they have any merit".

 

"It is contesting them vigorously in court. The bank incurred around £30m of
losses on the £75m it lent Mr Morley, who was a sophisticated customer in
receipt of extensive professional advice."

 

However, it added: "The language used in these internal communications from
2009 was clearly unacceptable and would have no place in the bank we are
today. These communications did not reflect or lead to customer detriment."

 

APA influence

Separately from the court hearing, the extent of Treasury influence is
underlined by previously unnoticed Asset Protection Agency (APA) documents
showing the Treasury agency influenced GRG's strategy and its approach to
customers' loans.

 

Official APA documents unearthed from public sources also suggest the bank
was prohibited from releasing GRG customers from secured loans without its
approval, giving the Treasury an effective veto on any re-financing by
business customers wanting to exit GRG.

 

While GRG told customers it was there to help them turn around the fortunes
of their business, the report, leaked to the BBC in 2017, found the bank was
seeking to make profits from distressed businesses and had systematically
broken rules on fair treatment of customers.

 

The BBC research adds to little-noticed comments given by GRG boss Derek
Sach, who told MPs in 2014 that it could be in the interest of the bank's
finances to destroy a business customer and that the Treasury agency, the
APA, was encouraging the bank to withdraw more business customers' loans.

 

Asked before the Treasury select committee if it might be in the commercial
interests of RBS to destroy a customer so as to strengthen its balance
sheet, Mr Sach said:

 

"That is absolutely right and, as you will know, the Asset Protection Agency
came into being in 2010 and they were always pushing us to go for more
foreclosure for exactly that reason, which is something I robustly resisted
throughout the period. There is quite a bit of correspondent between me and
them of threats and counter threats and not being prepared to do that."

 

The report leaked to the BBC found inappropriate treatment of business
customers in GRG was widespread, systematic and intentional. More than nine
in ten customers suffered some form of mistreatment and only a small
fraction returned to normal banking with their business intact.

 

Promontory, the consultants who authored the leaked report, told MPs on the
Treasury select committee they were expecting to conduct a further review on
which individual culpability would have been examined.

 

However, Financial Conduct Authority chief executive Andrew Bailey decided
instead that the FCA would conduct its own inquiry. In the summer of 2018,
he announced the FCA would not be taking its investigation further,
prompting accusations from small business victims of GRG of a cover-up.

 

The evidence unearthed about the Asset Protect Agency's role suggests the
executives would have been able to point to government involvement,
potentially exposing the Treasury to large compensation claims.

 

In the light of the new evidence, Oliver Morley Estates has given notice
that it intends to sue Her Majesty's Treasury for compensation for its role
in dismantling its business.

 

The FCA said it would shortly be publishing a full report about the findings
of an enforcement investigation into RBS's GRG division.--BBC

 

 

 

Yahoo data breach payout blocked by judge

A judge has rejected Yahoo's attempt to draw a line under a series of
breaches it experienced between 2013 and 2016.

 

The firm had proposed a payout to lawyers acting on behalf of affected US
and Israeli users.

 

But while the deal said the attorneys could claim up to $37.5m (£28.5m) in
fees and costs, it did not disclose the sum reserved for victims.

 

The California judge also objected to Yahoo being too vague about what
remedial steps it was taking.

 

Details of the ruling were first reported by the Courthouse News Service,
which has also published the decision in full.

 

Dark web sale

Judge Lucy Koh has form in dealing with contentious cases involving tech
giants.

 

She previously oversaw a high-profile patent dispute between Apple and
Samsung, and has also presided over headline-making cases involving YouTube,
Qualcomm and Tesla.

 

The Yahoo class action lawsuit specifically covers three data breaches that
affected the web portal's users' personal information:

 

a 2013 event in which hackers were able to access all 3 billion Yahoo
accounts

a 2014 attack, which the firm said had affected more than 500 million
accounts

a breach that happened between 2015-16, in which the plaintiffs allege that
the data stolen in 2014 was used to gain access to specific user accounts

The lawyers pursuing the case noted that Yahoo had repeatedly delayed
notifying the public of the incidents until some time after it had become
aware of them.

 

In one instance, the business acknowledged it had paid for data from
millions of its hacked accounts that had been advertised on the dark web,
but disputed claims that it had failed to prevent the information being
purchased by others.

 

Among the evidence presented to the court was a report submitted by the
plaintiffs that alleged there had been further breaches dating back to 2008
involving "several million accounts", which Judge Koh noted that Yahoo
continued to deny.

 

Yahoo was taken over by the telecoms firm US Verizon in 2017 in a $4.5bn
deal.

 

'Inflated figures'

The judge first expressed reservations about the settlement at a hearing in
November, when she complained that she had been unable to "figure out the
total estimated sum" being promised.

 

And on Monday, she formally rejected the deal.

 

Yahoo 2013 data breach hit 'all three billion accounts'

Yahoo 'hacker-for-hire' pleads guilty

US charges Russian spies over Yahoo breach

Her ruling set out several objections.

 

Firstly, Judge Koh said she was dissatisfied that it released Yahoo from
having to make further payouts related to breaches prior to 2013.

 

Since the firm had not admitted to any such events, the judge said the court
was unable to evaluate what harm might have been experienced by users.

 

Judge Koh added that a failure to disclose the total size of the settlement
fund meant that those affected would be unable to determine if it was
reasonable.

 

In addition, she expressed concern that the sum that could be claimed by the
140 lawyers pursuing the case "may be unreasonably high".

 

The judge also claimed Yahoo had publicly declared an "inflated, inaccurate"
estimate of the number of users affected while filing under seal - meaning
it does not become part of the public record - "a more accurate, much
smaller number".

 

This might reduce the amount that could be claimed by each victim and act as
a disincentive to them seeking recompense.

 

Furthermore, the judge criticised the tech firm for making only "vague
commitments" to improve its cyber-security.

 

"Yahoo's history of non-disclosure and lack of transparency related to the
data breaches are egregious," Judge Koh concluded.

 

"Unfortunately, the settlement [and related filings] continue this pattern
of lack of transparency."

 

Her refusal to accept the deal means the two sides will have to consider new
terms.

 

A spokesman for Verizon said it did not discuss pending litigation.

 

The plaintiffs' lead law firm has not responded to a request for
comment.--BBC

 

 

 

US hits 'corrupt' Venezuela oil firm PDVSA with sanctions

The US has imposed sanctions on Venezuela's state-owned oil firm PDVSA and
urged the country's military to accept a peaceful transfer of power.

 

National Security Adviser John Bolton said President Nicolás Maduro and his
allies could "no longer loot the assets of the Venezuelan people".

 

Efforts by the opposition to unseat Mr Maduro have increased in recent days.

 

The US and more than 20 countries have recognised opposition leader Juan
Guaidó as interim president.

 

Treasury Secretary Steven Mnuchin said the proceeds of the purchase of
Venezuelan oil would now be withheld from Mr Maduro's government, but the
company could avoid sanctions by recognising Mr Guaidó.

 

Venezuela is heavily reliant on the US for its oil revenue - sending 41% of
its oil exports there - while it remains in the top four crude oil suppliers
to the US.

 

Mr Maduro later announced he had told PDVSA to launch "political and legal
action, in US and international courts" to protect its US subsidiary Citgo.

 

Why Venezuela's military is backing Maduro

Venezuela crisis - in seven charts

What's behind Venezuela's political crisis?

In other developments:

 

Mr Guaidó says he is ordering Venezuela's Congress to name new heads of the
PDVSA and Citgo, as he aims to take control of the country's assets

The government has devalued its currency, the bolivar, by almost 35% to
align it with the black market exchange rate

What is the US calling for?

Mr Bolton and Mr Mnuchin said the sanctions were intended to prevent Mr
Maduro's government from taking funds from the state oil company.

 

"We have continued to expose the corruption of Maduro and his cronies and
today's action ensures they can no longer loot the assets of the Venezuelan
people," Mr Bolton said.

 

The US action blocks all PDVSA property and interests subject to US
jurisdiction, and prohibits US citizens from engaging in transactions with
them.

 

But Mr Mnuchin said US-based subsidiary Citgo could continue operations if
its earnings were deposited in a blocked account in the US.

 

Mr Bolton also urged Venezuela's military to "accept the peaceful,
democratic and constitutional transfer of power".

 

As Mr Bolton was announcing the sanctions at a Washington news conference,
observers spotted a handwritten message on his notepad.

 

It read "5,000 troops to Colombia", though it is unclear what this means.

 

One observer suggested the apparent gaffe may be an infringement of
operational security.

 

Report

At the press conference Mr Bolton declined to rule out military involvement
in Venezuela.

 

A White House spokesperson later said: "As the president has said, all
options are on the table."

 

However, one US official anonymously told AFP news agency "we are not seeing
anything that would support" a possible troop deployment to Colombia.

 

Earlier in the day a state television broadcast showed Mr Maduro welcoming
home diplomats recalled from Washington DC.

 

Venezuela broke off relations with the US last week in response its
recognition of Mr Guaidó as interim leader and ordered all US diplomats to
leave the country.

 

However, on Saturday Venezuela's foreign minister announced it would allow
30 days for the two sides to set up "interest offices" in each other's
countries.

 

The US decision to impose sanctions on Venezuela's state-owned oil company
was aimed at ratcheting up pressure on the Maduro government.

 

Still, it's hard to predict how much of an impact the move will have,
especially since US refineries had reduced orders in recent months in
anticipation of this step, according to Mr Mnuchin.

 

The Maduro government has proven resilient, despite an economy in crisis, an
already sharp contraction in oil production and other US efforts to isolate
it. If countries such as China and Russia continue to support Venezuela, the
government may be able to appeal to them for additional help.

 

Ivan Briscoe, the International Crisis Group's programme director for Latin
America, told me on Friday he thought Mr Maduro could survive additional
sanctions.

 

Meanwhile, he warned that the situation for Venezuelans would get worse
should the US, China and Russia continue to treat the country as a "football
in a bigger political game".

 

Who supports whom?

Russia, China, Mexico and Turkey have publicly backed Mr Maduro.

 

At a UN Security Council meeting on Saturday, Russia accused Washington of
plotting a coup.

 

Media captionWho's really in charge in Venezuela? The BBC's Paul Adams
explains

However, more than a dozen Latin American countries and Canada have backed
Mr Guaidó as president.

 

And on Saturday, several European countries including Spain, Germany, France
and the UK said they would recognise Mr Guaidó as president if elections
were not called within eight days.

 

Why is Maduro so unpopular?

Venezuela is in economic crisis - hyperinflation and shortages of basic
essentials have hit its population hard and caused millions to flee.

 

Mr Maduro has faced internal opposition and ongoing international criticism
for his human rights record and handling of the economy.

 

How Venezuelans stave off hunger

Fury at Maduro's Salt Bae feast

He was re-elected to a second term last year - but the elections were
controversial, with many opposition candidates barred from running or
jailed.

 

Supreme Court judge Christian Zerpa fled to the US in January, telling
journalists the election "was not free and competitive".

 

--BBC

 

 

George Fernandes: The man who threw out Coca-Cola and IBM from India

Veteran socialist politician George Fernandes, who served as India's defence
minister during the Kargil conflict with Pakistan, has died, aged 88.

 

He was suffering from Alzheimer's and had been out of the limelight for many
years. He had recently contracted swine flu and died on Tuesday, his
long-time associate Jaya Jaitly said.

 

A charismatic trade union leader, Mr Fernandes will be best remembered for
resisting emergency rule in the mid-1970s when then prime minister Indira
Gandhi suspended civil liberties.

 

He will also be known as the man who threw out Coca-Cola and IBM from India
when he was the industry minister in the late 1970s.

 

Known to be honest and forthright, Mr Fernandes was often described as a
rebel who fought for the rights of the poor people and low-paid workers.

 

In his early years, he wanted to become a Catholic priest and joined a
seminary in the southern city of Mangalore at the age of 16. But two years
later, he quit, disillusioned by "the hypocrisy of the church", and moved to
Mumbai (then Bombay) in search of work.

 

George Fernandes: The trouble shooter

India media remember 1975 emergency

It was there that he became involved with trade unions and the socialist
movement, and regularly organised protests and strikes in the 1950s and 60s.

 

The tall, dark, handsome young man, dressed in clothes made from homespun
Khadi material, won people over with his brilliant oratory.

 

In the 1967 election, he defeated senior Congress leader SK Patil, earning
the sobriquet "George the giant killer".

 

'Wanted man on the run'

Although he was regarded a hero by the poor masses whose rights he fought
for, his trade union activities often put him on the wrong side of the law.

 

In Mumbai, he led the taxi drivers' union and was jailed several times for
participating in protests and shutdowns that disrupted life.

 

As head of the railway employees's union in 1974, he called on its 1.4
million workforce to strike and brought the service to a halt for days.

 

Thousands of protesters, including Mr Fernandes, were arrested and jailed by
Mrs Gandhi's government.

 

But his most shining moments came after Mrs Gandhi declared the state of
emergency in June 1975.

 

As most prominent political leaders were jailed on flimsy charges, Mr
Fernandes became a "most wanted man on the run" and managed to evade arrest
for a year, disguising himself first as a fisherman and later as a turbaned
Sikh.

 

He was arrested in June 1976 in Kolkata (then Calcutta) and flown to Delhi
where he was lodged in Tihar jail.

 

He was brought to court handcuffed and in chains and was charged with
attempting to topple the government by force and conspiracy. The case
against him was dubbed the "Baroda Dynamite Conspiracy" and he was accused
of using explosives to blow up government establishments and railway tracks.

 

In 1977, when parliamentary elections were held, Mr Fernandes stood for
election from inside jail and won with a massive majority.

 

Once out of jail, he was appointed India's industry minister in then prime
minister Morarji Desai's government.

 

It was at that time that he forced Coca-Cola and IBM to quit India after
they refused to dilute their stake in their local partners.

 

Although IBM resumed business with Indian firms a couple of years later and
returned to the country in 1992, Coca-Cola took two decades to return.

 

In 1994, Mr Fernandes launched his own Samata Party and later joined the
coalition government headed by late prime minister Atal Bihari Vajpayee and
served as defence minister.

 

Despite being a life-long campaigner against nuclear weapons, he supported
and oversaw India's nuclear tests in 1998, saying they were necessary to
ensure the country's security.

 

He also oversaw the 1999 conflict with Pakistan on the border in Kargil.

 

During his stint, Mr Fernandes visited soldiers posted in the Siachen
glacier several times and won widespread support among them because of his
efforts to improve their working conditions.

 

He resigned in 2004 after his associate Jaya Jaitly was named in an arms
bribery scandal, but was later cleared of any wrongdoing by two inquiry
commissions.

 

Mr Fernandes last served in parliament in the Rajya Sabha, the upper house,
from 2009 to 2010.--BBC

 

 

 

Ackermans launches its own R1499 smartphone

South African retailer Ackermans has launched its own smartphone.

 

Dubbed the Premio X1, its the first in the company’s new line of exclusive
handsets.

 

In terms of specs, the phone will feature a notched 5.5 inch screen, a dual
rear camera setup (8MP and 2MP), and a 5MP selfie camera.

 

It’ll also feature a 2500mAh battery, 16GB of internal storage and 2GB of
RAM.

 

The phone will retail for R1499.-gearburn

 

 

 

Pound nurses losses on renewed Brexit uncertainty, dollar awaits Fed

The pound nursed losses early on Wednesday on fresh concerns about the
possibility of a "no-deal" Brexit, while the dollar held steady ahead of the
Federal Reserve's policy decision.

 

Sterling was little changed at $1.3078 but retreated 0.7 percent overnight
as lawmakers rejected a proposal to give parliament a path to prevent a
potentially chaotic hard exit. Britain is due to leave the EU on March 29.

 

Last week, the pound hit $1.3218, its highest since mid-October, on hopes
that London might avoid a no-deal departure from the European Union.

 

"It is difficult to tell what's next for the pound. But the March 29 Brexit
deadline will likely be extended, and the focal point is on when and how
such an extension is decided upon," said Yukio Ishizuki, senior currency
strategist at Daiwa Securities.

 

"For now focus shifts back to key events with more consequences for the
dollar, such as the FOMC (Federal Open Market Committee) meeting, U.S.-China
trade talks and U.S. jobs report," Ishizuki said.

 

Later on Wednesday the Fed ends a two-day policy meeting at which it is
expected to leave interest rates unchanged having raising them four times
last year.

 

Attention shifts to its policy outlook as the Fed has signaled a slower pace
of rate increases this year with some speculating it might pause its
tightening cycle soon.

 

Chinese Vice Premier Liu He will hold the next round of U.S. trade
negotiations in Washington on Wednesday and Thursday while the
closely-watched U.S. jobs report will be released on Friday.

 

Against the pound the euro was slightly lower at 87.41 pence having surged
0.8 percent on Tuesday.

 

The single currency was steady at $1.1435 after brushing a two-week high of
$1.1450 overnight.

 

The dollar index against a basket of six major currencies was little moved
at 95.805 following a slip to a two-week low of 95.620 overnight after U.S.
Treasury yields declined ahead of the Fed's policy statement.

 

The greenback was flat at 109.41 yen after posting modest gains the previous
day.--cnbc

 

 

 

Knotch raises $25M to help marketers collect data about their content

Knotch announced yesterday that it has raised $25 million in Series B
funding.

 

The round was led by New Enterprise Associates,  with NEA’s Hilarie
Koplow-McAdams joining the Knotch  board of directors. Rob Norman, the
former chief digital officer of ad giant GroupM is also joining the board.

 

“Brands have a desire to understand the effectiveness of their digital
content across all channels, a gap that hadn’t been filled before Knotch,”
Koplow-McAdams said in a statement. “Our conviction around the Knotch
platform and team is driven by their impressive traction and comprehensive
product offerings. We’re thrilled to partner with Knotch as they continue
their growth trajectory, providing transformative marketing intelligence at
scale.”

 

When we first wrote about Knotch back in 2012, it was a consumer product
where people could share their opinions using a color scale. It might seem
like a stretch go from that to a marketing and data company, but in fact
Knotch still collects data using its color-based feedback system — now, it’s
using that system to ask consumers about their response to sponsored
content.

 

In addition, Knotch offers a competitive intelligence product, as well as
Blueprint, which helps marketers find the best publishers for their
sponsored content.

 

Knotch screen shot

 

“As [brands are building] their own content hubs and recognizing content as
a really key piece of their marketing stack, as they’re turning to this
space, there’s not a lot of great options for them to turn to and say,
‘Here’s a way to know in advance which creative themes and topics and
formats [are going to resonate].’ Here’s how we optimize this content,
here’s a way to benchmark what you’re doing,” founder and CEO Anda Gansca
told me.

 

And it sounds like Gansca’s vision goes beyond sponsored content.

 

“In this convoluted landscape, you need a partner that is going to be your
Switzerland of data, who’s aligned with you, collecting transparent digital
performance data across paid and own channels,” she said.

 

Knotch has now raised a total of $34 million. Customers include JP Morgan
Chase, AT&T, Ally Bank, Ford, Calvin Klein and Salesforce.--techcrunch

 

 

Yes, Criminals Use Bitcoin: They Also Use Cars, Cash, Mobile Phones, and the
Web


In the ten years of Bitcoin’s existence much has been made about its
supposed utility for criminals by the mainstream media. The latest example
comes from the UK’s Daily Mail, which has made a big deal about the digital
currency’s use in the case of a nurse using the dark web to deal pills out
of California.

 

However, given that criminal acts are estimated to account for less than 1%
of all transactions occurring on the Bitcoin network, such headlines seem
entirely unjustified. Yes, Bitcoin has been used for criminal activities but
so has just about every technological advancement ever – cash included.

 

Bitcoin is Efficient, Criminals Like Efficiency

In its 10 year existence, Bitcoin has had a fair amount of dirt thrown at it
from the mainstream media. This is reasonably understandable since its first
major use case was the buying and selling of drugs on early dark web
marketplaces such as Silk Road.

 

However, since then a lot has happened. Bitcoin has moved out of the shadows
and towards the mainstream in a way only a few thought possible. As huge
names such as the Intercontinental Exchange and Fidelity have made clear
over the past couple of years, Bitcoin is on the verge of becoming a serious
financial asset. Is it not time the mainstream media stopped mentioning it
in criminal cases where it was used only to facilitate the transfer of
value?

 

The latest example of a mainstream media publication unnecessarily naming
Bitcoin in connection to a crime comes from the UK’s Daily Mail. Earlier
today, the newspaper reported on the case of a nurse from California who had
used the dark web to sell controlled substances in exchange for Bitcoin.

 

The only thing that could be considered interesting about the story is the
volume of narcotics the woman had sold and the fact that she worked in the
medical profession herself. The method of payment is entirely irrelevant to
what went on. If anything Bitcoin’s use in the crimes committed shows how
useful it is for cross border payments – criminal or not – and little more.

 

Other tools used for non-nefarious acts by innocent members of the public
and occasionally to commit crimes are not subject to the same sort of
coverage. We are not bombarded with headlines such as: “Armed Robber Used
Motor Car to Escape Scene of Crime”, “Drink Driver Spends Dollars in Liquor
Store”, or “Fraudster Uses iPhone to Plan Scam”.

 

Bitcoin receives a lot of negative press for its association with criminals.

Just like phones, cars, and even cash, the purpose of Bitcoin is not to aid
criminals. It is to transfer value quickly and efficiently across borders
without an intermediary. Other items when used criminally only get mentioned
explicitly when they are being used in a way they were not intended. If a
man killed someone using a hammer, that will get brought up. Likewise, if
someone ploughs a car into a sea of people, that’s worthy of a mention.

 

Many mainstream media publications seem hell bent on loading as much
sensationalism into a headline as possible. This may account for Bitcoin’s
explicit mentions. Those working at the Daily Mail probably realise how hard
phrases relating to Bitcoin are trending these days and want to scoop as
much traffic as possible in light of ever-dwindling readerships. Hopefully,
as Bitcoin continues to evolve and become more accepted we can leave such
stories in the past as the digital asset becomes a more common part of daily
life.--newsbtc

 

 

 

Cryptocurrency Thefts and Scams Raked in 300% More Profit Last Year than
2017

Blockchain analytics firm CipherTrace released a report this morning showing
that roughly $1.7 billion in cryptocurrency was stolen or scammed over the
course of 2018. The amount stolen by hackers alone is staggering: over $950
million. The figure represents an increase of more than 300% from 2017.

 

The scams noted in the report don’t even include individual user scams.
Instead, they focus on exchange exit scams, phony exchange hacks, and ICO
scams. They account for an additional $725 million.

 

THE DARK DOWNSIDE OF THE CRYPTO BOOM

If you adjust for the lower prices of cryptocurrencies in 2018, as much as
500% of actual crypto-tokens is more like it. The majority of coins stolen
in 2018 were done through hacking exchanges and other services. CipherTrace
believes the losses were probably much higher:

 

These numbers only represent the loot from crypto crimes that CipherTrace
can validate; we have little doubt that the true number of crypto asset
losses is much larger.

 

Millions of “noobs” entered the cryptocurrency space over the bull run of
2017. Many had dreams of striking it rich. Plenty did strike it rich. Plenty
more missed the all-time-high due to greed or misunderstanding of the
underlying market mechanics inflating the bubble.

 

 

As 2018 continually depressed the price of all cryptocurrencies,
inexperienced users were charged – perhaps for the first time – with being
their own bank. In many cases, remaining secure involves numerous security
practices. There are those who disavow the use of MacOS or Windows, for
instance, or even storing cryptocurrency on computers connected to the
internet.

 

Rationality dictates new users have poor security practices. Additionally,
newer users couldn’t be expected correctly delineate between trustworthy and
non-trustworthy exchanges or even ICOs. Every aspect of crypto was new to
them, and scammers go to great lengths to appear legitimate.

 

 

 

INSIDE JOBS DOMINATED CRYPTO THEFTS IN Q4 2018

According to the report, the amount stolen in the last quarter of 2018 was
lower than the amount stolen in the third quarter. Cyber-criminals have
reportedly turned to conducting inside jobs and victimizing noobs over
“attacking hardened IT systems.”

 

The total dollar value of Q4 2018 thefts was lower than the number for Q3.
This is partially due to the falling price of all cryptocurrency. In
addition, rather than hacks on exchanges and wallets, inside jobs began to
dominate the crypto crime landscape. It appears that a new breed of
cybercriminals steeped in computer science and FinTech found it easier to
commit fraud against unwitting investors and exchange users as opposed to
attacking hardened IT systems.

 

SIM-SWAPPING ON THE RISE

 

SIM-swapping, a technique used to steal many different kinds of accounts,
including exchange accounts, is on the rise. The method involves effectively
reassigning the phone number associated with an account to an attacker’s
phone. The attacker then uses SMS verification to reset the password on the
account and drains the account. Many exchanges no longer allow for SMS
verification. SIM-cloning is a similar technique.

 

According to CipherTrace, SIM-swapping was on the rise in 2018:

 

“SIM Swapping” represents a new and insidious threat to crypto businesses,
users, and investors that became widespread in 2018. Once SIM Swapping
attackers receive the compromised phone numbers, they use them to reset
passwords and break into the victims’ accounts, including accounts on
cryptocurrency exchanges.

 

‘CRYPTODUSTING’

The report also notes a new technique employed by a firm called BestMixer.
BestMixer sent fractional amounts of BTC to as many addresses as possible in
order to “taint” them all and confuse analytics companies like CipherTrace
and Chainalysis.

 

But it wasn’t simply spam advertising: by sending Bitcoin to the top BTC
addresses, BestMixer was effectively tainting these users by forcing them to
transact with a mixer via these tiny transactions. By dusting every address
with funds from a mixer, the campaign had the effect of soiling users’
reputations. The reason to dust so many addresses was an attempt to confuse
blockchain analytics tools in order to circumvent AML, which was their
stated objective.

 

The report details nearly every known hack from 2018, including MapleChange.
It’s worth a read for those interested in best security practices in
cryptocurrency.--ccn

 

 

 

European shares hold gains ahead of events blizzard

LONDON (Reuters) - European shares closed higher ahead of a blizzard of
political, economic and corporate events, with a Brexit vote and Apple
results on Tuesday and a Federal Reserve decision and Sino-U.S. trade talks
on Wednesday.

 

The pan-European STOXX 600 index ended the day up 0.8 percent, while
London’s FTSE 100 rallied by more than 1.3 percent ahead of the vote in
Parliament on Brexit.

 

Gains were spread among most sectors and bourses but investors shunned
stocks or indexes exposed to U.S.-China trade, such as Frankfurt’s DAX,
which limited its gains to 0.1 percent or automotives, which fell 0.5
percent.

 

News that the United States leveled criminal charges against China’s Huawei
before the new round of talks between Washington and Beijing added to the
subdued mood.

 

Trading was limited with FTSE 100 turnover at 88 percent of the average 90
day daily volume, STOXX 600 at 85 percent and DAX at 77 percent.

 

The mood was however better in Europe than on Wall Street where indexes were
slightly in the red.

 

Stéphane Barbier de la Serre, a strategist at Makor Capital Markets, said
European markets had catching up to do and that Wednesday’s U.S. monetary
meeting was making investors there more cautious.

 

“Let’s wait for the Fed”, summed up their thinking, he said.

 

The European technology sector, down 0.5 percent, was also among the few
losers with SAP, Europe’s most valuable technology company, down 2.7 percent
after its results.

 

Technology stocks in the U.S. were also retreating with Apple set to report
after market close and Amazon.com, Facebook and Microsoft, all scheduled to
report later this week.

 

World markets slip on China worries; dollar steady ahead of trade talks

Among individual moves, Germany’s Sartorius jumped 18.2 percent after its
results.

 

Royal Mail hit an all-time lows after failing to deliver its full-year
results.

 

Shares in Scor sank 11.4 percent. The French reinsurer is suing rival Covea
and its chief executive for breach of trust after Covea announced it had
abandoned plans for a friendly takeover of Scor.

 

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2019

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


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