Major International Business Headlines Brief::: 14 October 2019

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Major International Business Headlines Brief::: 14 October 2019

 


 

 


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

 


 

 


 

 

*  Trump says U.S., China have reached substantial phase-1 trade deal

*  Uber launches boat service in Nigeria's megacity Lagos

*  Egypt cuts stock exchange fees in bid to boost investments

*  Guinea's Nimba iron ore project gets green light to export via Liberia

*  S.Africa's rand races to 3-week high on easing trade war, Brexit tensions

*  Nigerian crude diffs crash as freight rates bite

*  Gabon's GDP growth to rise to 3.4% this year -IMF

*  Eskom challenges latest power tariff decision in court

*  Eni plans to quadruple gasoline output at Angolan refinery by 2021

*  Nigeria's state oil company signs $2.5 bln pre-payment deal for gas projects with NLNG

*  Denel winds up Aerostructures

*  Hunter Biden to step down from China board amid Trump attacks

*  Brexit: Pound surges on renewed hopes of a deal

*  Payments giants abandon Facebook's Libra cryptocurrency

*  Boeing and FAA criticised over 737 Max certification

*  Barclays made ‘dodgy’ deal with Qatar, court hears

*  Facebook under fire over 'outrageous' UK tax bill

 


 <mailto:info at bulls.co.zw> 

 


 

Trump says U.S., China have reached substantial phase-1 trade deal

(Reuters) - President Donald Trump said on Friday the United States and China had come to a substantial phase-1 trade deal, reaching agreement on intellectual property, financial services and big agricultural purchases.

 

The two sides are very close to ending their trade war and it will take up to five weeks to get the deal written, Trump said, speaking to reporters after talks with Chinese Vice Premier Liu He.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Uber launches boat service in Nigeria's megacity Lagos

LAGOS (Reuters) - Global ride-hailing firm Uber Technologies Inc on Friday launched a pilot test of a boat service in Nigeria’s commercial capital Lagos to attract commuters seeking to avoid the megacity’s notoriously congested roads.

 

The United Nations predicts that Nigeria’s population will more than double to 400 million by 2050, which would make it the third most populous country in the world after China and India.

 

The combination of population growth and congestion has made Nigeria, and more broadly West Africa, attractive to foreign transport companies.

 

Uber’s chief business officer told Reuters in June the company planned to launch the service to carry travellers in the Lagos megacity of around 20 million people that is built on a lagoon.

 

The waterway service, UberBOAT, is operated in partnership with local boat operator Texas Connection Ferries and the Lagos State Waterways Authority (LASWA), said the ride-hailing firm.

 

“This initiative is aimed at providing commuters with an easy and affordable way to get in and out of the city’s business districts,” Uber said in a statement.

 

The pilot phase will operate on weekdays from 0700 GMT to 1600 GMT on a fixed route between two locations in the city.

 

Passengers will be charged a flat fare of 500 naira ($1.39) per trip, compared with about 300 naira by minibus for a similar journey in the commercial hub of the West African country where most people live on less than $2 a day.

 

At a press conference on Friday, Uber officials said there would be four trips a day, carrying up to 35 people on a boat, during the two-week pilot.

 

Babajide Sanwo-Olu, the governor of Lagos state, said the Uber boat service, and the use of waterways in general, were part of a raft of initiatives aimed at easing congestion that include a programme of road repairs.

 

“We want ferries that carry 60 to 80 people,” he said, referring to his hopes for the future use of waterways, on Thursday at a forum with businesses.

 

Uber’s boat initiative follows a number of motorcycle ride-hailing firms that have targeted West Africa as an area for expansion in the last few months.

 

Technology giant Google also launched a new feature in July that allows Nigerians to hear travel advice in a local voice on Google Maps. Another feature allows users in Lagos to seek directions from “informal transit” services, such as private minibuses.

 

 

 

Egypt cuts stock exchange fees in bid to boost investments

(Reuters) - The Egyptian Financial Regulatory Authority (FRA) said on Sunday it had approved lowering stock exchange trading fees to encourage investment and competitiveness with other regional markets.

 

The decision will now be sent to the cabinet for final approval, the FRA said in a statement.

 

The FRA approved cutting trading service fees to 0.005% from 0.00625%, clearing and settlement fees to 0.0100% from 0.0125% and stock market commissions to 0.0100% from 0.0120%.

 

The cost charged to investors for trading insurance would also fall to 0.005% from 0.010%. Trading service fees on bonds listed on the stock exchange will be reduced to become half the trading service fees on shares following the adjustment.

 

Other regional stock exchanges have similarly been reducing investor costs. These include the Abu Dhabi Securities Exchange, which reduced commissions by as much as 90% on July 1.

 

The Egyptian government plans to sell shares in some 23 state-owned companies on the stock exchange, as part of a plan to raise 80 billion Egyptian pounds ($4.93 billion) by selling minority stakes at the local stock market. The programme has been repeatedly delayed, including due to emergeing market turbulence last year.

 

($1 = 16.2300 Egyptian pounds)

 

 

 

Guinea's Nimba iron ore project gets green light to export via Liberia

CONAKRY (Reuters) - Guinea and Liberia signed a deal on Friday to allow several mines in Guinea, including the giant Nimba iron ore project, to export through Liberia, officials from the West African countries said.

 

The logistics of transporting tonnes of raw materials to port from mining sites in remote parts of Guinea has been a major hurdle for prospective developers of the country’s vast mineral wealth.

 

The agreement, which builds on an initial memorandum of understanding signed six years ago, is a victory for U.S.-Canadian investor Robert Friedland’s HPX, which last month acquired Nimba, a high-grade deposit in southeast Guinea.

 

“The mining projects in question are near the border with Liberia and cannot be profitable if they export through Guinea’s coast,” Guinea’s mines Minister Abdoulaye Magassouba told Reuters.

 

A graphite project owned by SRG Mining and a Zali Mining project would also be able to export through Liberia under the deal, Magassouba said.

 

The authorisation to export via Liberia applies to the first 5 million tonnes produced at the mines, Magassouba said, beyond which the government will evaluate the feasibility of exporting via a 650-kilometre railway to the Guinean coast.

 

The “Transguineen” railway is to be built by the eventual owner of the much larger Simandou iron ore project, which the government insists must export through a Guinean port. Fortescue and SMB-Winning have bid to develop the mine.

 

Zogota, a nearby iron ore deposit owned by former Xstrata boss Mick Davis’ Niron Metals, has already negotiated an agreement to export through Liberia.

 

But Nimba and Zogota still need to reach agreements with Germany’s ArcelorMittal, the sole rail concession holder in Liberia, to allow them to use its infrastructure.

 

ArcelorMittal declined to provide an immediate comment.

 

 

 

S.Africa's rand races to 3-week high on easing trade war, Brexit tensions

JOHANNESBURG (Reuters) - South Africa’s rand powered to a 3-week best on Friday as emerging market currencies were boosted by thawing trade tensions between United States and China.

 

At 1545 GMT the rand was 1.91% firmer at 14.7525, its best level since Sept. 20, leading a rally of emerging market currencies sparked by U.S. President Donald Trump’s comments that trade talks with Beijing were going well.

 

China and the U.S are in the second day of top-level negotiations aimed at rolling back tensions between the world’s two largest economies.

 

Risk demand globally was also soothed by the European Union and Britain agreeing on Friday to hold intense talks over the next few days to secure a deal for Britain’s departure from the bloc as the Oct. 31 deadline looms.

 

“It’s all-round risk-on scenario, and the rand has broken through some key technical levels, so if it can close below the 14.70 level you might just see it hold on to these gains,” said Rand Merchant Bank trader Jan Sluis-Cremer.

 

“The talks yesterday between China and the U.S. seem to have been received quite positively and that’s been good for everyone, except the Turkish lira of course,” said Sluis-Cremer.

 

The lira was the EM laggard, dragged down as Istanbul intensified air and artillery strikes in northeast Syria.

 

In fixed income, the yield on the benchmark government bond due in 2026 dipped 2 basis points to 8.205%.

 

On the stock market, the Top-40 index closed 0.76% higher at 49,404 points while the broader all-share was up 0.84% to 55,537 points.

 

Financial shares boomed, with boutique bank Investec up nearly 8%, while Nedbank and Absa climbed more than 3% on the day, boosted by the firmer currency.

 

On the downside, gold producers were hit by the improvement in global risk demand as investors ditched the metal typically considered a safe haven, along with the dollar.

 

Anglogold Ashanti was 6% lower at 296.14 rand, while fellow bullion producers Sibanye Gold and Gold Fields were both down more than 4%, to 23.35 rand and 80.90 rand respectively.

 

 

 

Nigerian crude diffs crash as freight rates bite

LONDON (Reuters) - Differentials for Nigerian crude oil grades continued to crash on Friday with the key grade being shown at its lowest level since 2005 owing to still rising freight rates as a result of U.S. sanctions on China’s shipping company COSCO.

 

* Phillips 66 tentatively chartered a supertanker to ship U.S. crude from the U.S. Gulf Coast to South Korea for a record $14 million this week, sources said Thursday.

 

* Traders and ship brokers said that rates were still rising beyond that level and that Bonny Light had been offered down to around dated Brent flat, down from close to a $2.50 premium to dated Brent last week.

 

* In the Platts window, Cepsa bought a cargo of Amenam at dated Brent minus $1.55 cents a barrel from Total loading Nov. 10-11.

 

* Bonny Light and Qua Iboe typically trade no more than $1-$1.10 a barrel above Amenam, further illustrating the market collapse, a trader said.

 

* Forcados crashed earlier this week after Trafigura sold a cargo $1 below an offer level on Monday.

 

* Cepsa also bought Bonny Light and Abo from Eni and Escravos from Equinor, traders said. Price details did not immediately emerge.

 

TENDERS

* India’s IOC awarded its latest tender for west African crude loading Nov. 24 to Dec. 3 to Total, Chevron and Shell.

 

 

* India’s HPCL issued a buy tender for crude loading in the first quarter of next year. Details will emerge next week.

 

 

 

 

Gabon's GDP growth to rise to 3.4% this year -IMF

(Reuters) - Gabon’s economy is expected to grow by 3.4% in 2019, up from 0.8% last year, due to strong performances by the oil, mining and timber sectors, the International Monetary Fund (IMF) said on Friday.

 

Growth should also increase to 4% in the medium term, the IMF said in a statement at the end of a staff visit.

 

 

 

Eskom challenges latest power tariff decision in court

JOHANNESBURG (Reuters) - South Africa’s struggling power utility Eskom said on Friday it was challenging in court the regulator’s latest tariff decision, a move it said was necessary to avert financial disaster.

 

State-owned Eskom, which produces more than 90% of the country’s electricity, implemented some of most severe power cuts in several years this year and is reliant on government bailouts to survive.

 

In March, regulator Nersa granted Eskom tariff increases of 9.4%, 8.1% and 5.2% over the next three years, far below what the utility had sought. At the time Eskom said the tariff awards left it with a projected revenue shortfall of around 100 billion rand ($6.7 billion).

 

Eskom said in a statement on Friday its board of directors had decided to challenge the tariff awards after reviewing the reasons for Nersa’s decision.

 

“We have put in an application for urgent interim relief, which is necessary to avoid financial disaster for Eskom. We are seeking an order to address this shortfall in a phased manner,” Eskom Chief Financial Officer Calib Cassim was quoted as saying.

 

In arriving at its decision, Nersa had offset a 23 billion rand a year bailout granted by government against Eskom’s allowable return on assets, Eskom said, arguing that approach ran counter to Nersa’s own methodology and defeated the whole point of the bailout.

 

Eskom’s finances are hobbled by its massive 450 billion rand debt burden, racked up partly to pay for two mammoth coal-fired power stations, Medupi and Kusile. But Eskom also argues its financial position has been severely damaged by years of low tariff awards which have not allowed it to recover its costs.

 

($1 = 15.0061 rand)

 

 

 

Eni plans to quadruple gasoline output at Angolan refinery by 2021

CAPE TOWN (Reuters) - Italian oil and gas company Eni expects to boost gasoline production at Angola’s Luanda refinery to 470,000 tonnes within two years from the current 110,000 tonnes a year, a senior company official said on Friday.

 

Last year, Eni signed an agreement with Angola’s state-owned oil firm Sonangol to lift production at the 65,000 barrel per day plant, the only refinery in Africa’s second largest oil producer which imports around 80% of its fuel products.

 

“The installation of a specific unit, which is called a platformer, (will allow the refinery) to increase production of reformate gasoline,” said Andrea Giaccardo, Eni Angola’s managing director, in a country report to an African oil and power conference in Cape Town.

 

“The current capacity of the refinery is 110,000 tonnes per year and the target, once the platformer is installed, is to reach a production capacity of about 470,000 tonnes per year by 2021,” he said.

 

Milan-based Maire Tecnimont S.p.A. said separately its Kinetics Technology subsidiary was awarded the engineering, procurement and construction contract worth $200 million.

 

Eni operates the Luanda refinery under a joint venture with Sonangol.

 

 

 

 

Nigeria's state oil company signs $2.5 bln pre-payment deal for gas projects with NLNG

LAGOS (Reuters) - State oil company Nigerian National Petroleum Corp (NNPC) on Friday said it had signed a $2.5 billion pre-payment agreement with Nigeria LNG (NLNG) for upstream gas development projects.

 

NLNG, which produces liquefied natural gas (LNG) for export, is owned by state-run Nigerian National Petroleum Corporation (NNPC) and foreign energy firms Royal Dutch Shell, Total and ENI.

 

Nigeria was the fifth largest LNG producer in the world last year, falling from fourth place as its production declined and it was overtaken by the United States, according to the International Group of Liquefied Natural Gas Importers.

 

NLNG operates six LNG processing units, known as trains, on Bonny Island.

 

The pre-payment agreement is “for upstream gas development projects to supply trains 1-6”, NNPC said on Twitter. It did not provide further details.

 

Earlier this month NLNG said it had moved closer to an investment decision on the long-awaited Train 7 project to expand its liquefied natural gas plant on Bonny Island.

 

 

 

Denel winds up Aerostructures

JOHANNESBURG (Reuters) - South Africa’s Denel is winding up its struggling Aerostructures aircraft parts business after receiving government approval, the state arms company said on Friday.

 

Denel, a cornerstone of South Africa’s once-mighty defence industry, is battling to emerge from a financial crisis and has pledged to shutter loss-making divisions.

 

The decision to close Aerostructures comes after Denel reached an agreement with Airbus to stop producing parts for the European planemaker’s A400M military aircraft.

 

A Denel statement said 230 employees would be affected by its decision to close Aerostructures. Some employees will be transferred to other positions within Denel and voluntary severance packages have been offered.

 

CEO Danie du Toit said the decision to close Aerostructures was in line with Denel’s long-term profitability strategy.

 

Denel made an operating loss of 1.9 billion rand ($127 million) in its 2018/19 financial year after a similar loss the previous year.

 

Denel said support functions for military helicopters and aircraft at its Kempton Park campus would not be affected.

 

Denel is also exploring opportunities to attract business in fields such as unmanned aerial vehicles, it added.

 

($1 = 14.9652 rand)

 

 

 

Hunter Biden to step down from China board amid Trump attacks

The son of US presidential contender Joe Biden is to step down from the board of a Chinese company amid fierce attacks by President Donald Trump.

 

Hunter Biden would also not work for any foreign-owned companies if his father were elected, his lawyer said.

 

Mr Trump has called on China and Ukraine to investigate Joe Biden over his son's activities in both countries, without any evidence of any wrongdoing.

 

The issue is central to an impeachment inquiry against the US president.

 

Mr Trump and his supporters have accused Joe Biden of abusing his power when he was vice-president to pressure Ukraine to back away from a criminal investigation that could have implicated his son who then worked for a Ukrainian energy company.

 

 

The impeachment inquiry begun by opposition Democrats in the US House of Representatives centres on allegations that the president broke the law by soliciting help from a foreign power - Ukraine - for electoral gains.

 

What did Hunter say?

A statement released through Hunter's lawyer said he would resign by 31 October from the board of BHR (Shanghai) Equity Investment Fund Management Company.

 

It said he joined the board in an unpaid position "based on his interest in seeking ways to bring Chinese capital to international markets".

 

The statement said Hunter would "readily comply" with guidelines issued by his father if he was elected president "to address purported conflicts of interest, or the appearance of such conflicts", and would, "in any event", agree not to serve on the boards of or work on behalf of foreign-owned companies.

 

The statement also detailed the nature of his work in Ukraine and China, stressing that there had been no wrongdoing.

 

What has Trump accused the Bidens of doing?

Mr Trump has accused the former US vice-president and his son Hunter of corruption in their political and business dealings in Ukraine and China, without offering specific evidence.

 

When Hunter Biden joined the board of Ukrainian natural gas company Burisma in 2014, questions were raised about a potential conflict of interest for his father.

 

Ukraine was undergoing a political transition after its pro-Russia president was forced out of office, while the elder Biden was the Obama administration's point man for the Eastern European country.

 

In 2016, Joe Biden pushed the Ukrainian government to fire its top prosecutor, whose office had been scrutinising the oligarch owner of Burisma.

 

In a speech last year at a think tank, Joe Biden boasted of having forced the prosecutor out by threatening to withhold a billion-dollar loan guarantee to Ukraine.

 

Mr Trump and his allies accuse Joe Biden of acting to protect his son. However, other Western officials and major financers of Ukraine's government also wanted the prosecutor dismissed because he was seen as a barrier to anti-corruption efforts.

 

What is the impeachment inquiry?

A Democratic-led inquiry is trying to establish whether Mr Trump withheld nearly $400m (£327m) in aid to nudge Ukraine's newly elected President Volodymyr Zelensky into launching an inquiry into Joe Biden and his son.

 

In a phone call on 25 July, Mr Trump asked Mr Zelensky for help on the issue.

 

 

A whistleblower raised concerns about the phone call, prompting the launch of a formal impeachment investigation last month.

 

The White House this month sent an eight-page letter to top Democrat and House Speaker Nancy Pelosi, calling the inquiry "constitutionally invalid" and therefore stating that President Trump would not be co-operating.--BBC

 

 

 

 

Brexit: Pound surges on renewed hopes of a deal

Sterling surged on Friday to a three-month high amid investor optimism about a last-minute Brexit deal between Britain and the European Union.

 

Against the dollar the pound rose 1.9% to $1.2682, and against the euro was up 1.67% at €1.1489.

 

The currency has rallied more than 3% since Thursday, its biggest two-day gain since before the June 2016 referendum on leaving the EU.

 

Many UK-focused shares also surged, with Royal Bank of Scotland up 11.6%.

 

On Friday, EU Brexit negotiator Michel Barnier said he had had a "constructive" meeting with UK Brexit secretary, Stephen Barclay. That followed talks between the Irish and British prime ministers on Thursday, after which a joint statement spoke of "a pathway to a possible deal".

 

 

Deutsche Bank's foreign exchange strategist George Saravelos said he was "turning more optimistic on Brexit" and no longer negative on the pound, while JPMorgan said the Anglo-Irish statement may have "changed everything".

 

Brexit: EU gives go-ahead for 'more intense' talks

Aerospace industry seeks Brexit reassurance

"The chances of a deal seem to have improved and the pound has moved accordingly but hurdles still remain," said Dean Turner, economist at UBS Wealth Management. "Time to thrash out the details of the deal are tight, and then there is the question of parliamentary approval."

 

Other analysts cautioned that trading on the financial markets was thin, leading to higher volatility and a sharp jump in some share prices. Meanwhile, another analyst said the price surges were probably due to algorithms driving the market.

 

 

Following the more confident noises coming from Brussels, London and Dublin, there were hopes that a meeting between British and EU negotiators will pave the way for a Brexit transition deal at a summit on 17-18 October.

 

The rally in sterling undermined the UK's export-heavy FTSE 100 stocks, and the blue chip index itself was up under 0.9%.

 

But shares exposed to UK growth and consumers soared. Housebuilders Persimmon, Barratt and Taylor Wimpey rose more than 10%. Next rose nearly 8.5%, and ITV more than 6%. The more UK-focussed FTSE 250 index was up more than 4%.

 

The yield on 10-year British government bonds was on track for its biggest three-day rise since 2017.--BBC

 

 

 

Payments giants abandon Facebook's Libra cryptocurrency

Mastercard, Visa, eBay and payments firm Stripe have pulled out of Facebook’s embattled cryptocurrency project, Libra.

 

Their move, first reported in the Financial Times, follows the withdrawal of PayPal, announced last week.

 

It represents a huge blow to the social network’s plans to launch what it envisions as a global currency.

 

The project has drawn heavy scrutiny from regulators and politicians, particularly in the US.

 

Facebook chief executive Mark Zuckerberg will appear before the House Committee on Financial Services on 23 October to discuss Libra and its planned roll-out.

 

Regulators have raised multiple concerns over Libra, including the risk it may be used for money laundering.

 

Mercado Pago, a payments firm serving mostly Latin America, also pulled out. It means of the six payments-related firms first involved in Libra, just one, PayU, remains. Netherlands-based PayU did not respond to the BBC's request for comment on Friday.

 

In a statement released on Friday, eBay said it “respected” the Libra project.

 

“However, eBay has made the decision to not move forward as a founding member. At this time, we are focused on rolling out eBay’s managed payments experience for our customers.”

 

A spokesperson for Stripe said the firm supported the aim of making global payments easier.

 

"Libra has this potential. We will follow its progress closely and remain open to working with the Libra Association at a later stage.”

 

A spokesperson for Visa said: "We will continue to evaluate and our ultimate decision will be determined by a number of factors, including the Association's ability to fully satisfy all requisite regulatory expectations."

 

The Libra Association, set up by Facebook to manage the project, said of the departing companies: "We appreciate their support for the goals and mission of the Libra project.

 

"Although the makeup of the Association members may grow and change over time, the design principle of Libra's governance and technology, along with the open nature of this project ensures the Libra payment network will remain resilient.

 

"We look forward to the inaugural Libra Association Council meeting in just 3 days and announcing the initial members of the Libra Association.”

 

Facebook's executive in charge of its Libra effort wrote on Twitter that losing the firms was "liberating".

 

"I would caution against reading the fate of Libra into this update," wrote David Marcus, who before joining Facebook was PayPal's president.

 

"Of course, it's not great news in the short term, but in a way it's liberating. Stay tuned for more very soon. Change of this magnitude is hard. You know you're on to something when so much pressure builds up."

 

Last week, PayPal said it would no longer be part of the Libra Association, but did not rule out working on the project in future - prompting a strong reaction from the Association.

 

"Commitment to that mission is more important to us than anything else," it said in a statement. "We're better off knowing about this lack of commitment now."

 

 

 

 

Boeing and FAA criticised over 737 Max certification

The US Federal Aviation Administration (FAA) did not adequately review the new automated safety system in Boeing's 737 Max, an international panel has found.

 

The panel said the FAA delegated too much oversight to Boeing, while the planemaker had provided confusing information about the system, which has been linked to two deadly crashes.

 

The FAA thanked the panel for its "unvarnished" report.

 

Boeing pledged to work with the FAA on the recommendations.

 

The FAA, which oversees plane safety in the US, commissioned the review in April after Boeing 737 Max disasters in Ethiopia and Indonesia, which killed 346 people.

 

The agency had faced criticism over its approval of Boeing's 737 Max, which has been grounded since March following the crashes.

 

In both incidents, investigators focused on the role played by a software system called MCAS (Manoeuvring Characteristics Augmentation System), which was designed to make the aircraft easier to fly.

 

Inquiries have shown the software - and the failure of sensors - contributed to pilots not being able to control the aircraft.

 

In the wake of the two accidents involving the 737 Max, the FAA has come in for some strong criticism.

 

Over the years it has delegated more and more safety certification work to Boeing. It simply doesn't have the expertise or resources to do it all itself, and it's a policy which US politicians have supported.

 

But recently it has been accused of becoming too close to the aerospace giant, and failing to exercise proper oversight.

 

This report bears out a least part of that claim.

 

It concludes that the FAA wasn't sufficiently aware of what MCAS was and so was unable to exercise proper oversight; and that "undue pressures" were placed on Boeing staff carrying out tasks on behalf of the regulator.

 

FAA Administrator Steve Dickson has said he will review every recommendation made in the "unvarnished" review.

 

But the problem remains: if certification depends on Boeing marking its own homework, how can the FAA be sure it's doing the job properly?

 

'Undue pressures'

In a report published on Friday, the panel found that the the agency's "limited involvement" and "inadequate awareness" of the automated MCAS safety system "resulted in an inability of the FAA to provide an independent assessment".

 

It also found that Boeing staff performing the certification were also subject to "undue pressures... which further erodes the level of assurance in this system of delegation".

 

While the FAA's approval process scrutinised individual changes, it did not adequately consider how the changes might interact with existing systems or with pilots and crew, the report added.

 

The panel included representatives from the FAA, as well as officials from NASA and nine other countries, including Canada, China and Indonesia.

 

'Bolster aviation safety'

The FAA pledged it would act on the report's recommendations.

 

"We welcome this scrutiny and are confident that our openness to these efforts will further bolster aviation safety worldwide," FAA Chair Steve Dickson said. "The accidents in Indonesia and Ethiopia are a sombre reminder that the FAA and our international regulatory partners must strive to constantly strengthen aviation safety."

 

Boeing, which has blamed the crashes on erroneous data fed into the system, called safety a "core value". It has said it is revising the plane's software to improve safeguards.

 

"Boeing is committed to working with the FAA in reviewing the recommendations and helping to continuously improve the process and approach used to validate and certify airplanes going forward," the company said in a statement.--BBC

 

 

 

Barclays made ‘dodgy’ deal with Qatar, court hears

Senior Barclays executives warned each other it was "dodgy" to pay the Prime Minister of Qatar millions for "advisory services", a court has heard.

 

They raised concerns with lawyers and discussed the risk of jail if they were blamed for the arrangement.

 

But audio recordings played to the court revealed they expected responsibility to lie with the chief executive and board of directors.

 

Roger Jenkins, Tom Kalaris and Richard Boath are on trial at the Old Bailey.

 

They are accused of fraud and conspiracy to commit fraud.

 

On Friday the court heard phone calls from June 2008, when Barclays was seeking billions of pounds in extra capital to boost its weak finances.

 

The then Prime Minister of Qatar, Sheikh Hamad al-Thani, indicated to Roger Jenkins he was prepared to invest £2bn.

 

But the Qatari investors wanted a commission for doing so of 3.25% - more than double the 1.5% commission other investors were getting.

 

Rather than paying all investors the same, higher amount, the court heard, Barclays arranged to pay the Qatari investors an "additional fee" of 1.75% - or £35m - for 'advisory services'.

 

Roger Jenkins negotiated the deal in close consultation with Bob Diamond, then deputy chief executive, according to transcripts of phone calls read out in court.

 

"I was on and off the phone with Bob and on and off the phone with Hamad and we eventually agreed," Mr Jenkins was quoted telling Mr Boath in 2008. "The night of 11 June, I had a conversation with Sheikh Hamad, exploring the advisory agreement."

 

The Serious Fraud Office's case is that the advisory services agreement was fraudulent because it was in fact simply a mechanism to pay the Qataris' additional fees.

 

'A bit tricky'

Mr Kalaris told Mr Boath the scheme had been approved by then-deputy chief executive Bob Diamond and finance director Chris Lucas, and also by compliance director Steve Morse.

 

Only after the deal was struck did they realise that it might be wrong to retain the Prime Minister of Qatar as an adviser to Barclays.

 

Mr Boath and Mr Jenkins told Sheikh Hamad he had to disclose his beneficial ownership of the vehicles used to invest the money.

 

"He is the prime minister," Mr Boath told Mr Jenkins in a phone call on 18 June 2008. "So him getting paid to provide us with advisory services is a bit tricky".

 

"Actually that's true," Mr Jenkins replied. "I don't know what to do with this… But he wants his money".

 

Richard Boath suggested a legitimate solution:

 

"You know what I want to do? You know what I think the best thing to do is… we basically start again… the Chinese come in, everybody comes in, we disclose 3% fees.... none of us is going to jail and we get a deal done on Tuesday."

 

Jenkins: "Fine, but let's deal with the real… what we've got."

 

In court, Ed Brown QC, prosecuting, said: "You may well think he was beginning to say 'reality'. You may wish to take that recording into account carefully - it is revealing".

 

Later in the same call, Mr Jenkins returned to the same point:

 

"…given his position of Prime Minister and Foreign Minister -"

 

Richard Boath: "It's a bit dodgy."

 

Roger Jenkins: "It's a bit dodgy. You can't as a Prime Minister, take these services…"

 

Following the call with Mr Jenkins, Richard Boath spoke to Barclays lawyers Judith Shepherd and Matthew Dobson who advised him the Qataris had to provide "valuable services" in exchange for the Barclays' money.

 

Matthew Dobson: "And it's actually beyond Roger, it's the board actually, because you know this is all part of the -

 

Richard Boath: "Are we going to have to demonstrate over time that they have provided these services?"

 

Judith Shepherd: "If anybody challenges us."

 

Mr Boath: "Like any, any of the other investors?"

 

Ms Shepherd: "Any of the other investors, the FSA, the UKLA, the criminal authority, the Fraud Unit."

 

Mr Boath: "I'm already feeling sick. There's no need to use all those words to make me feel sicker."

 

Ms Shepherd: "Well, I haven't even finished my list yet."

 

Mr Boath: "Right…"

 

Ms Shepherd: "It's serious stuff; we're not playing a game here."

 

Mr Boath: "No… well if it were me I wouldn't have agreed to it. But there you go… So, all right."

 

Ms Shepherd: "Well Big Dog [Roger Jenkins] will be in the dock first."

 

Mr Boath: "Otherwise known as the 'Dodger' so maybe he might even dodge that one… By the way, are the board going to see this agreement?"

 

Ms Shepherd: "Of course they are."

 

Mr Dobson: "It's their necks on the block."

 

The trial continues.--BBC

 

 

 

Facebook under fire over 'outrageous' UK tax bill

Facebook's UK arm paid £28.5m in tax in 2018 as revenues hit a record £1.65bn on the back of strong advertising growth.

 

The social media firms's latest UK accounts show that profits last year jumped by 54% to £96.6m.

 

Facebook's total tax charge on those profits almost doubled to £30.4m, but was reduced due to adjustments.

 

Tax campaigner and MP Margaret Hodge said such a low bill was "outrageous", but Facebook said it pays what it owes.

 

Gross revenues from advertising and other activities rose 30% in 2018, a year when the Cambridge Analytica affair was at its height and the company was facing heavy criticism.

 

The UK division spent £356m on research, development and engineering in the UK last year, the accounts filed at Companies House showed.

 

Steve Hatch, the company's vice president for Northern Europe, said: "The UK is now one of Facebook's most important hubs for global innovation. We continue to grow and invest heavily in the UK and by the end of the year we'll employ 3,000 people here.

 

"Businesses across the country use our platforms to grow and revenue from customers supported by our UK teams is now recorded here so that any taxable profit is subject to UK corporation tax."

 

Facebook said it complies with tax laws in all jurisdictions and pays what is legally due.

 

But Ms Hodge, a former chairwoman of the Public Accounts Committee, and who now leads an all-party parliamentary group looking into the tax system, tweeted that it was "still outrageous" that big tech firms were not paying their fair share into society.

 

 

Last month, Amazon came under fire for paying £14.7m in UK corporation tax last year, despite reporting sales of £2.3bn. Google has faced similar criticism.

 

Earlier this week, the Organisation for Economic and Development (OECD), proposed tax changes aimed at making global firms pay more tax.

 

The proposals would give governments more power specifically to tax big technology firms such as Apple, Facebook and Google.

 

Companies that do business in more than one country have long been a challenge for tax authorities, because they can structure their business in a way that minimises their tax bills.

 

The OECD's proposal includes new rules on where tax should be paid and on the proportion of their profits that should be taxed in each country.--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 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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