Major International Business Headlines Brief::: 18 September 2019

Wed Sep 18 02:04:31 CAT 2019

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Major International Business Headlines Brief::: 18 September 2019

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*  Nigeria's diesel-dependent economy braces for clean-fuel rules

*  Zambia may import 300 MW of power from S.Africa, prices could double - minister

*  East, Southern African power grids to be connected in next 2 to 3 yrs -Kenya

*  Transnet signs manganese export deal with Kalagadi

*  Kenya Airways chairman calls for professional board after nationalisation

*  Uganda says its power generation capacity will jump 55% by year-end

*  South African miner Exxaro buys remaining 50% stake in wind farm JV

*  Vitol and Mozambique's state oil firm form trading joint venture

*  Comair posts earnings jump after settlement

*  Why the Fed's interest rate move matters

*  Oil price falls as Saudi Arabia calms supply fears

*  Facebook unveils its plan for oversight board

*  WeWork sees stock market listing 'by the end of the year'

*  HTC bets on former Orange executive to boost sales

*  Amazon Echo screen flicker angers owners

*  Apple Irish tax case appeal heard by EU court

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Nigeria's diesel-dependent economy braces for clean-fuel rules

LAGOS (Reuters) - Nigeria’s frenetic commercial capital, Lagos, is plunged into darkness several times a day. Then its generators roar, and the lights flood back on.

Nigeria is one of the world’s largest economies where businesses rely so heavily on diesel-powered generators.

More than 70% of its firms own or share the units, while government data shows generators provide at least 14 gigawatts of power annually, dwarfing the 4 gigawatts supplied on average by the country’s electricity grid.

The machines guzzle cash and spew pollution, but they are reliable in a nation where nearly 80 million people - some 40% of the population - have no access to grid power. Now diesel costs could spike globally, and many businesses are not prepared.

Diesel prices are expected to surge as United Nations rules aimed at cleaning up international shipping come into effect on Jan. 1, with many ships expected to burn distillates instead of dirtier fuel oil.

Slowing economic growth and nascent trade wars could blunt a price spike, and as the shipping industry adapts to the rules, vessels will likely consume less diesel. But in the short term their impact could be profound.

Estimates vary widely, but observers warn that prices could surge by nearly 20%.

Higher costs for operating generators that power the machinery, computer servers and mobile phone towers that run Nigeria’s economy could impair growth in gross domestic product, already limping along at 1.92% at a time inflation is at 11%.

With the population growing at 2.6% each year, people are getting poorer.

“In an environment like this, where discretionary spending is very limited, this could have a big impact,” said Temi Popoola, West Africa chief executive for investment bank Renaissance Capital.

A 20% price rise could shave 0.2% off GDP growth, he said.

GENERATORS EVERYWHERE

Nigeria and German engineering group Siemens agreed in July to nearly triple the country’s “reliable” power supply to 11,000 megawatts by 2023. But previous such plans have failed.

While many Nigerian household and small business generators are powered by price-capped gasoline, the big generators for larger firms, apartment complexes and more substantial homes can only run on diesel.

“Businesses may struggle to survive, or in the best case scenario, would at least downsize,” said Tunde Leye, a Lagos-based analyst with SBM Intelligence. Diesel is the second or third biggest cost for many Nigerian firms, he said.

The oil industry, the Nigerian economy’s biggest driver, would not take a big hit as it does not rely on Nigerian consumers being willing to absorb extra costs it has to pass on. As fuel producers in their own right, its firms can also recoup costs more easily.

But other heavyweight industries would feel pain. Bank branches rely on generators, with diesel often accounting for 20-30% of banks’ operating expenses, according to Popoola.

Telecommunications companies need them to run their mobile phone towers across the country. Telecoms giant MTN told local media in 2015 that it spends 8 billion naira ($26 million) annually on diesel.

Even bakeries need diesel. At Rehoboth Chops & Confectioneries Ltd, a bakery in the Ogba district of Lagos, giant diesel-powered ovens bake hundreds of loaves of bread. The factory runs 24 hours a day, six-and-a-half days a week.

The lights, mixers and fans that clear the heat are powered by two large diesel generators outside. The ovens run directly on diesel, so they never cut out.

Chief operating officer Abayomi Awe said they use cheaper grid power when they can but rely on generators for around 20 hours per day. Grid power can be down for days.

“It becomes difficult for us to expand if the price of diesel goes up,” he said as bakers scrambled to pull finished loaves from steaming ovens. “It might result in some companies, some bakeries like ours, shutting down.”

IN CRISIS, AN OPPORTUNITY

Many businesses are already searching for solutions. The Lagos Chamber of Commerce wants electricity prices revised upwards so the grid can attract investment - a politically risky move domestically.

It has also lobbied the government to remove tariffs and taxes on imported solar panels, which stand at 10%.

Unity Bank and the Bank of Agriculture have already signed deals with solar firm Daystar Power, while mobile phone tower firm IHS Towers is trying to power more sites using solar panels.

Solar power provider Starsight Power Utility Ltd said it is working with 70% of Nigerian banks, but that cheap diesel has been one of the biggest hurdles for the development of solar.

“I think an increase in the diesel price would be most welcome for our business,” chief executive Tony Carr said. “There is no market penetration because diesel is so cheap.”

($1 = 305.9000 naira)

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Zambia may import 300 MW of power from S.Africa, prices could double - minister

LUSAKA (Reuters) - Zambia is in talks with South African power utility Eskom to import 300 megawatts (MW) of electricity, Energy Minister Mathew Nkhuwa said on Tuesday, adding that retail prices could double once imports begin.

Zambia has a power deficit of more than 750 MW because of low water levels at hydropower dams, Nkhuwa told reporters on the sidelines of an energy meeting. He gave no timeframe for when imports could start.

“(Retail prices) will be maybe double the amount because we are paying half the amount that we are supposed to pay for electricity,” Nkhuwa said.

Zambia, which has been rationing power after a severe drought hit its hydropower sector, has historically priced electricity below the cost of production via subsidies. Only in recent years has the country started gradually to raise prices.

In 2017, Zambia’s energy regulator approved a 75% price hike for electricity retail consumers and introduced a flat 9.30 U.S. cents/kilowatt hour (kWh) tariff for mining companies.

Nkhuwa said the government also planned to send a delegation to Mozambique to negotiate a new power-purchase agreement.

Zambia cut its economic growth forecast to around 2% for 2019, from an estimated 4%, due to the impact of the drought on its power supply and agricultural production.

East, Southern African power grids to be connected in next 2 to 3 yrs -Kenya

NAIROBI (Reuters) - The power grids of East and Southern African countries will be interconnected in the next two to three years after completion of various high voltage lines, paving the way for regional trade, a senior Kenyan energy official said on Tuesday.

Power shortages and outages are common across both regions and businesses often complain that poor or erratic supplies discourage investors and push up prices of local products, as many firms end up relying on costly diesel generators.

Connecting national grids would provide a bigger pool of energy resources and mean one country can tap idle supplies in another.

Joseph Njoroge, the principal secretary in the energy ministry, said high voltage lines linking Ethiopia, Tanzania and Uganda to Kenya were expected to be ready in at most the next three years.

“In the next two to three years, we will have interconnections with several neighbouring countries in the region,” he told an East African power conference.

“Thereafter, we will be able to come up with a configuration that enhances demand in terms of the region.”

The Kenya-Ethiopia link will be a 500 kilovolt (kV) line, while the lines to Uganda and Tanzania will be 400 kV. The power line to Uganda would thereafter link Rwanda and then Burundi.

All the states, except for Ethiopia, are part of the East African Community trade bloc.

Njoroge said the Kenya-Tanzania line was also expected to connect to Zambia, making it possible to trade power with Southern Africa, which already has a series of connections between South Africa, Zambia, Zimbabwe and Mozambique, allowing them to trade electricity.

Previously, the Kenyan energy ministry had said the line connecting Ethiopia and Kenya was expected to be completed in 2017, while that between Kenya and Uganda was to be ready in 2016, and the Kenya-Tanzania one was scheduled to be finished last year.

Njoroge told Reuters after his presentation the missed timetables was due to difficulties with land acquisitions on some sections for putting up the lines, known as wayleaves.

“Some of them (delays) have been caused by wayleaves. We have had some challenges with wayleaves,” he said.

“But there is none which would have been concluded (in that time).”

Kenya had installed generation capacity of 2,712 MW as at end 2018, against total power demand of 1,800 MW. Ethiopia’s installed capacity is about 4,300 MW.

Next year Uganda is expected to commission a 600 megawatt (MW) hydropower project that will boost the country’s generation capacity to about 1,600MW.

Transnet signs manganese export deal with Kalagadi

JOHANNESBURG (Reuters) - South Africa’s state-owned freight company Transnet said on Tuesday it had signed a 3 billion rand ($203 million) deal with miner Kalagadi Manganese to export 1 million tones a year of manganese.

South Africa holds about 75% of the world’s manganese resources, according to the department of mineral resources.

The contract with Kalagadi, based in the country’s Northern Cape province, will run until 2022.

The mining company plans to ramp-up its output up to 4 million tonnes per annum by 2022.

Transnet, which operates nearly three quarters of the African rail networks, mainly in South Africa, provides rail export line for the country’s main commodities including coal and iron ore.

($1 = 14.7987 rand)

Kenya Airways chairman calls for professional board after nationalisation

NAIROBI (Reuters) - Kenya Airways must avoid picking a board packed with politically-connected individuals after it is renationalised in order to ensure future success, its chairman said on Tuesday.

The loss-making airline, which is 48.9% government-owned and 7.8% held by Air France-KLM, was privatised 23 years ago but sank into debt and losses in 2014. Lawmakers voted to re-nationalise it in July.

Chairman Michael Joseph said the requirement for professionals to be put in charge of the airline is being built into draft laws that will guide the renationalisation.

“It must be run in a commercial way,” he told reporters on the sidelines of an aviation meeting.

“We do not want to create a situation that we had before, where you nationalise the airline and all it becomes is a department of government. The board of directors is loaded by friends of politicians.”

A failed expansion drive and a slump in air travel forced the airline to restructure $2 billion of debt in 2017. But Kenya Airways still needed cash for fleet and route expansion amid growing competition from Ethiopian and Emirates.

Kenya wants to emulate countries like Ethiopia, which runs air transport assets - from airports to fuelling operations - under a single company, using funds from the more profitable parts to support others.

Under the model approved by lawmakers, Kenya Airways will become one of four subsidiaries in an Aviation Holding Company.

The others will be Jomo Kenyatta International Airport (JKIA), the country’s biggest airport, an aviation college and Kenya Airports Authority, which will operate all the nation’s other airports.

“We want to make sure that if you create a nationalised airline that it will operate as a semi-autonomous airline,” Joseph said.

Competition among regional carriers rose at the end of last month when Uganda Airlines resumed flights after almost two decades.

Joseph said such developments left Kenya without any choice but to renationalise its airline, in order to cut costs and survive in the crowded Africa aviation market, where carriers have the weakest finances and emptiest planes of any region in the world.

“If we don’t do this we have no airline,” he said.

Uganda says its power generation capacity will jump 55% by year-end

KAMPALA (Reuters) - Uganda’s electricity generation capacity is set to jump by 55.5% in December when a Chinese-financed hydropower plant and other, smaller projects are commissioned, the east African country’s energy minister said.

In recent years, Uganda has been wooing private-sector energy investors and taking loans from China and other sources to help ramp up its power production to meet fast-rising demand.

Uganda’s installed electricity generation capacity in December will be up 55.5% from June at 1,825 megawatts (MW), Energy Minister Irene Muloni said in a statement.

The jump will largely come from 600 MW due to be added to the grid when the Karuma hydropower plant, being built by China’s Sinohydro Corp and financed with a loan from China’s Exim bank, is commissioned in December.

“Commissioning the Karuma Hydropower Project ... shall be another milestone to the energy generation capacity for industrialization and economic development,” she said.

The $1.7 billion Karuma plant is being constructed on the River Nile, where another project also financed and built by China, the Isimba hydropower plant, was commissioned last year.

Muloni said in addition to Karuma, five small hydropower projects with a combined capacity of 51 MW will be completed and connected to the grid by December.

Uganda’s power grid reaches just 23% of the country’s 40 million people, according to power distributor UMEME Ltd, which says it plans to spend about $1.2 billion in the next seven years to revamp and expand the grid.

Ugandan energy demand is expected to climb sharply in coming years as the country’s emerging petroleum industry drives up economic growth.

South African miner Exxaro buys remaining 50% stake in wind farm JV

JOHANNESBURG (Reuters) - South African miner Exxaro Resources Ltd said on Tuesday it acquired the remaining 50% stake in its wind farm joint venture for 1.55 billion rand ($105.56 million) as it looks to expand its energy business.

The move will help Exxaro consolidate its interest in renewable energy at a time when South Africa needs energy security amid increasing negative sentiment towards coal-based electricity generation, said Exxaro Chief Executive Officer Mxolisi Mgojo.

South Africa, Africa’s most advanced economy and also its worst polluter, generates most of its energy from coal-fired power plants that emit millions of tonnes of carbon dioxide into the atmosphere.

Exxaro bought the stake from Khopoli Investments, a subsidiary of Tata Power Company, and said the agreement was subject to regulatory approvals.

Cennergi, the joint venture, owns two wind farms in the Eastern Cape province with a projected 2019 earnings before interest, tax, depreciation and amortization (EBITDA) of around 850 million rand.

($1 = 14.6837 rand)

Vitol and Mozambique's state oil firm form trading joint venture

LONDON (Reuters) - Global energy trader Vitol and Mozambique’s state oil firm, ENH, have launched a trading joint venture called ENH Energy Trading, Vitol said on Tuesday, to focus on liquefied natural gas (LNG), liquefied petroleum gas and condensate.

The new entity will be incorporated and based in Singapore.

The move is part of a wider trend since last year that has seen energy firms either set up new dedicated gas trading desks or expand existing ones in Singapore. Asia is the fastest growing LNG market, led by Chinese demand.

Singapore has also been expanding its LNG infrastructure by increasing storage capacity.

Mozambique has an estimated 125 trillion cubic feet of technically recoverable gas resources and is expected to become a top LNG exporter with over 30 million tonnes per year, the statement said.

There are two mega LNG projects being developed in the southern African country.

One, now owned by Total following the takeover of ex-operator Anadarko by Occidental Petroleum, has taken a final investment decision. The other, led by Exxon Mobil Corp, is expected to do so later this year.

Vitol traded 7.8 million tonnes of LNG last year and 7.4 million barrels per day of crude, making it the largest independent oil trader.

Comair posts earnings jump after settlement

JOHANNESBURG (Reuters) - South African airline Comair on Tuesday reported a jump in annual profit helped by a $78 million settlement in an anti-competition case with embattled South African Airways (SAA).

Its headline earnings per share (HEPS) rose to 197.2 cents from 69.5 cents per share for the year to June 30, Comair said in an updated trading statement.

HEPS strips out certain one-off items and is the main profit measure in South Africa.

In February South Africa’s competition body ordered SAA to pay Comair 1.1 billion rand ($78 million) in a dispute that dates back more than a decade involving SAA’s travel agent incentive schemes.

The firm said the affects of the settlement would be fully disclosed in financial results to be released on Tuesday.

Comair operates flights in southern Africa under a licence from British Airways.

Why the Fed's interest rate move matters

The Federal Reserve, the US central bank, is expected to cut its main interest rates at a meeting in Washington on Wednesday.

If it does, the aim will be to stimulate the US economy and get inflation closer to the Fed's target of 2%. But it will have ramifications far beyond US shores.

Why does Fed policy matter for the rest of the world?

There are two general answers.

One is that the US economy's performance is important for the rest of us. If the Fed gets it wrong the US could end up underperforming, which would be bad news for many other countries.

The second point is that Fed policy can have an impact through financial markets by affecting exchange rates, interest rates and international flows of investment money.

So what is the impact of the US economy on the rest of us?

For most countries on the planet, the US is an important export market - for many, the largest of all.

If the US has a recession it will buy less stuff from abroad than it would have if growth had been maintained. Its immediate neighbours, Canada and Mexico, are particularly exposed. For both, more than three-quarters of their exports go to the US.

The UK is also at some risk from economic storms in the US, although not to the extent of those two. The US is the largest single country export destination for the UK - though it is much smaller than the EU taken as a whole. The US accounts for about 13% of UK exports.

Federal Reserve policymakers divided over US rate cuts

US shares recover as Trump renews Federal Reserve attack

Federal Reserve: Trump sharpens attack on central bank

And what is the Fed's role in this?

The Federal Reserve has a mandate from the US Congress to promote maximum employment and stable prices.

It raises interest rates if inflation is too high, or it thinks it is heading that way. It cuts rates if it thinks there is a danger of economic growth slowing too much or inflation being too low.

Rate cuts make it more attractive for business to borrow to invest and households to borrow to spend. The Fed is perhaps the key player in trying to prevent a recession and promoting a recovery if there is a downturn.

The Fed has started reducing interest rates in an attempt to maintain solid economic growth in the US.

Growth has slowed, though there does not appear to be an imminent danger of the economy actually contracting. That said, there have been some warning signs in the financial markets that often do signal a recession is not that far away.

If it can succeed in achieving that, it will reduce the risks of the rest of the world having a period of weak economic performance.

What is the impact on currency markets?

Cuts in interest rates in any country tend to make its currency lose value against others.

That is because lower interest rates mean there is less money to be made by investing in assets that yield interest, such as government bonds or debt.

If investors are less keen to buy, for example US government bonds, they have less demand for the currency needed to buy them. So the currency concerned, the dollar in this case, tends to lose value.

That in turn will make other countries less competitive against goods that are priced in US dollars. But it also helps slow inflation by making dollar-priced goods cheaper in other countries' currencies.

What about international investment?

When an economy as large as the US changes its interest rates, it is possible for the movement of investment funds to be disruptive.

There was an episode in 2013 when the Fed started to consider reducing its quantitative easing programme, which involved creating new money to buy financial assets such as government bonds. It was a move which was in some ways akin to raising interest rates.

The plan was to "taper" its quantitative easing, and the result for emerging economies such as India and Indonesia came to be known as the "taper tantrum".

That led to large amounts of money leaving emerging markets, and there were concerns at the time that it might even lead to a new financial crisis in those countries. In the event, that did not happen.

This time, because interest rates are likely to be cut, it is more likely that money will go into emerging economies. That can sometimes lead to financial instability (or unsustainable bubbles). That is not an immediate concern now, but it is a reason why countries need to keep a careful eye on what happens in the US.--BBC

Oil price falls as Saudi Arabia calms supply fears

Saudi Arabia has said its oil output will return to normal by the end of this month, with half the production lost in drone attacks on two key facilities already restored.

The news immediately calmed the oil markets, with the price falling 7% on Tuesday after Monday's huge spike.

Also, President Donald Trump said it was no longer necessary to release reserves from US emergency stocks.

Fears Saturday's strikes would hit global supplies sent prices 20% higher.

"Production will be back to normal by the end of September," Saudi Energy Minister Prince Abdulaziz bin Salman told a press conference, adding that the state oil giant Aramco had emerged "like a phoenix from the ashes" after the attack. A Saudi official also said plans for the stock market listing of Aramco, would continue "as is".

Saudi oil attack drones launched in Iran - US officials

Oil prices soar after attacks on Saudi facilities

Attack on Saudis destabilises already volatile region

The international benchmark, Brent crude, fell almost 7% to $64.6 a barrel. Brent had surged more than 20% on Monday, it's biggest one-day rise in 30 years. US oil, West Texas Intermediate, was down 5.5% to $59.5 a barrel.

'Huge' assault

The drone attacks on plants in the heartland of Saudi Arabia's oil industry hit the world's biggest petroleum-processing facility as well as a nearby oilfield, both of which are operated by Aramco, which is being prepared for what is expected to be the world's biggest share market listing.

Aramco chief executive Amin Nasser said the company was still in the process of estimating repair work, but it was "not that significant" given the company's size. Aramco had put out 10 fires in the span of seven hours after the "huge" assault, he told the same news conference.

The two Saudi facilities account for about 50% of the country's oil output, or 5% of daily global oil production.

Saudi Arabia is the world's biggest oil exporter, shipping more than seven million barrels daily. Saudi stocks stood at 188 million barrels in June, according to official data.

The US has blamed the attacks on Iran, and had said it could release more of its strategic reserves on the market to restore calm to prices. The US has about 416 million barrels of oil in commercial storage held by the likes of oil producers and refineries, based on data from the US Energy Information Administration.--BBC

Facebook unveils its plan for oversight board

Facebook has unveiled its plan to create an independent "oversight" board to make decisions over how the network is moderated.

The firm insisted the panel, which will hear its first "cases" in 2020, will have power to override decisions it makes over contentious material and influence new policy.

The idea, dubbed the Facebook supreme court, will eventually comprise 40 people around the world, but will be smaller at first.

Experts have questioned the board's independence, as well as the motivation behind the move.

"Facebook does not have a court," said Bernie Hogan, senior research fellow at the Oxford Internet Institute. "The only vote that really counts is the majority shareholder, Mark Zuckerberg."

He added: "Facebook's 'supreme court' invokes all the pomp and circumstance of actual judicial practice without any of the responsibility to citizens."

The board will launch with no fewer than 11 part-time members, Facebook said, and the names of those appointed will be made public - as will the results of their deliberations. The board will be paid via a trust set up and funded by Facebook upfront.

"We are responsible for enforcing our policies every day and we make millions of content decisions every week," wrote Facebook's chief executive, Mark Zuckerberg. "But ultimately I don't believe private companies like ours should be making so many important decisions about speech on our own."

How would the process work?

Facebook outlined how the board would operate in a charter published on Tuesday. The goals of the panel, as stated by Facebook, are to:

"Provide oversight of Facebook's content decisions"

Reverse Facebook's decisions when necessary"

"Be an independent authority outside of Facebook"

Major disagreements will be escalated to the panel once all of Facebook's existing moderation layers had been exhausted. Facebook controls which cases are submitted to the board, although panel members will decide which of those cases to take on.

Facebook anticipated that the board would only consider "dozens" of cases a year, focusing on those where a clear decision would be in "the greatest public benefit".

Users affected will be allowed to state their case in a written statement, but Facebook said it anticipated some board members may wish to speak to users "face-to-face".

"The board's decision will be binding, even if I or anyone at Facebook disagrees with it," Mr Zuckerberg said. "The board will use our values to inform its decisions and explain its reasoning openly and in a way that protects people's privacy."

One caveat, according to the firm's charter, is when recommendations are not technically feasible.

Facebook said the trust would be opened up for other networks to join - and fund - in future.

Why is Facebook is doing this?

Facebook's primary concern is that it doesn't want the power it currently wields - or at least, it doesn't want the scrutiny that power attracts. Its ability to decide what goes on its platform, the biggest network of people ever created, brings it nothing but trouble, particularly in its home country.

One recent example demonstrates the conflict Facebook faces. An anti-abortion video, deemed to contain inaccuracies by an independent fact-checking group contracted by Facebook, was removed - only to be reinstated after four Republican senators complained to Mr Zuckerberg personally, accusing the site of having a bias against conservative views.

In future, this kind of decision could be taken out of Facebook's direct control and handed to the oversight board, which has the power to override the site's policies - although experts predict Facebook will still bear the brunt of criticism.

"This panel is seen as an attempt to do something, but it appears to be just short of having enough teeth to make a difference," argued Mr Hogan. "It is a way to tell critics 'lay off, we are doing all it can'. Such a panel, while admirable is no match for some well organised trolls or broad systemic issues."--BBC

WeWork sees stock market listing 'by the end of the year'

The hotly-anticipated stock market listing of WeWork's parent firm may be delayed until the end of the year with investor interest appearing to falter.

We Company was due to begin marketing the office sharing firm to investors this week, with the flotation set to take place as early as this month.

But concerns have mounted over what firm, once valued at $47bn (£37.8bn), is worth.

On Monday, We Company said it planned to complete the listing by December.

"The We Company is looking forward to our upcoming [initial public offering], which we expect to be completed by the end of the year. We want to thank all of our employees, members and partners for their ongoing commitment," the company said in a statement.

The update followed several reports, citing unnamed sources, that the listing could be delayed until at least October.

Is WeWork really worth nearly $50bn?

Has the US flotation bubble burst?

The timing of the flotation has been in doubt as investor interest in the company has appeared to wane.

Last week, Reuters reported that the We Company could seek a valuation in its initial public offering (IPO) of between $10bn and $12bn, a sharp discount to the mooted $47bn price tag suggested in January.

In the past few months, We Company has faced concerns over its corporate governance standards, as well as the sustainability of its business model, which relies on a mix of long-term liabilities and short-term revenue.

WeWork has 61 locations in the UK, with 51 of those in London. Worldwide, it has more than 800 locations in 125 cities.

Media captionHow can a company be valued at billions, but not make any profit?

Critics say WeWork's model could leave it vulnerable during an economic downturn.

The company rents office space for the long term, subletting that space to firms and individuals on more flexible lease terms. That could leave it on the hook for lease payments even if tenants grow scarce.

WeWork has also faced questions about its complicated financial ties to founder chief executive, Adam Neumann, who would retain voting control of the company.

Earlier this month, Mr Neumann returned $5.9m worth of stock to the firm, which he had controversially received in exchange for his trademark of "We".

Concerns about slowing global growth could also contribute to a difficult ride on financial markets, as seen in other high-profile offerings this year, such as Uber.

Since WeWork's start in New York in 2010, it has expanded to more than 500 locations in 111 cities across 29 countries.

However, that rapid expansion has been expensive. WeWork lost about $1.6bn last year, despite revenue nearly doubling.--BBC

HTC bets on former Orange executive to boost sales

HTC, the Taiwanese company that built the first mobile phones for Android and Windows, has hired a new boss.

Yves Maitre, of Orange, takes over from Cher Wang, to become HTC's first chief executive who is not a co-founder.

It signalled HTC's desire to "regain a foothold" in the smartphone market, Ben Wood, from CCS Insight, told BBC News.

It hit its peak share of the market in 2011, after partnering with Google on its Nexus handsets - but now, less than 1% of smartphones shipped are from HTC.

Increasing competition

"It's no secret that HTC was once one of the biggest companies when it came to smartphones," Mr Wood, chief of research at CCS Insight, told BBC News.

"But it lost its way several years ago and has seen its market share decline."

Subpar camera quality, as well as increasing competition from mainland China and Silicon Valley, in the US, meant the company had been claiming ever-smaller slices of the smartphone market, he said.

Meanwhile, HTC's virtual reality headset, the Vive, held about 7% of the VR headset market share last quarter, according to the market intelligence firm IDC. It's competing with devices such as Facebook's Oculus, Sony's PlayStation VR and Microsoft HoloLens.

But Mr Wood said the challenges Mr Maitre faced "should not be underestimated".

"Not only is he going to be leading a business that needs to re-find its feet in the intensely competitive smartphone market, it's also a company that's betting big on VR [virtual reality], which is still an emerging technology," he told BBC News.--BBC

Amazon Echo screen flicker angers owners

BBC News has seen dozens of complaints about screen flickers affecting the Amazon Echo Spot and Amazon's response.

One owner, in Hampshire, said his device had started to flicker 16 months after he had bought it.

He was told its one-year warranty had run out and offered 15% off a new one rather than a refund or repair.

Under EU law consumers must be given a minimum two-year guarantee "as a protection against faulty good or goods that don't look or work as advertised".

A thread on Amazon's help forum about the screen problem, which dates back several months, has had nearly 20,000 views and there are many tweets about the issue.

A poster on the same topic on Reddit said it appeared to be "a widespread problem".

"One-year warranty, and I, like many, are right outside it," another, in the US, said.

An Amazon representative told BBC News: "We are investigating. If customers have any questions or concerns, they should contact customer service."

The Echo Spot retails at £119.99 on the Amazon website.

Overall it has received good reviews, with the website TrustedReviews awarding it 4.5 stars.

What Hi-Fi describes it as "an impressive piece of kit" and notes "the display is sharp".

In the UK, goods are covered by the Consumer Rights Act 2015 (CRA), as well as European Union law.

"Generally we would always advise consumers who have goods which are clearly faulty to go back to the retailer in the first instance to make their claim under the statutory rights which exist under the CRA," Sylvia Rook, lead officer for fair trading from the Chartered Trading Standards Institute, said.

"Consumers have up to six years to make a claim for faulty goods (five years in Scotland).

"That doesn't mean that goods have to last for six years but it does mean that a trader can't refuse to consider a claim just because the consumer has had an item for a period of time, if it is proved to be faulty."--BBC

Apple Irish tax case appeal heard by EU court

An EU court is hearing appeals against a decision to order Ireland to recover £11.5bn of unpaid taxes from Apple.

In 2016, the European Commission found an agreement between Dublin and the technology giant was against EU law.

It said the Irish government allowed Apple to attribute nearly all its EU sales earnings to an Irish head office that existed only on paper, thereby avoiding paying tax on EU revenues.

Both the Republic of Ireland and Apple are appealing against the ruling.

Analysis: Message to business important for Ireland

By John Campbell, BBC News NI Economics and Business Editor

Why would any government want to turn down a €14bn tax windfall?

For Ireland, the motivation is twofold: First there is the desire to disprove claims that it acts, or has acted, as a tax haven.

The country has faced increasing criticism of its corporate tax policies, with the American economist Gabriel Zucman leading the charge.

He has accused Ireland of being "the world's number one tax haven".

Secondly, Ireland wants to demonstrate to multinational investors that the country is a safe and predictable place to do business.

Apple's lawyer Daniel Beard told the court the order issued by the European Commission three years ago "defied reality and common sense".

"The activities of these two branches in Ireland simply could not be responsible for generating almost all of Apple's profits outside the Americas", he added.

The European Commission argued Ireland allowed Apple to reduce substantially its tax bill in a way that gave the technology giant a selective advantage over other companies located in Ireland, said Laura Treacy, a Brussels-based partner at Irish law firm McCann FitzGerald.

"The two companies in question were really the revenue generating companies for all of Europe. They happened to be located in Ireland," Ms Treacy told BBC Radio 4's Today programme.

Why is Ireland refusing billions?

Ireland forced to collect 13bn euro tax bill

"They were established in Ireland, but importantly, they were non-tax resident in Ireland and, as a result, they were not required to pay income or corporate tax on their worldwide profits but rather only on the profits that were attributable to the Irish operations."

The Irish state argues the EC has misunderstood the Irish tax rules and Irish tax arrangements, she said.

"Where the commission says a lot of the profits were being transferred to head offices which, according to the commission, had no employees and no staff, and carried on very little substance," she said.

"Ireland and Apple are saying no actually, quite serious decision making was taking place in these head office entities," she added.

"And it was correct to allocate the vast proportions of the profits to the head offices, leaving only smaller amounts in Ireland because they are saying only routine tax decisions were taking place in Ireland."

Ms Treacy said both Apple and Ireland argue that one of the commission's key points is incorrect and does not form part of state aid law, but is instead "a kind of novel rule" introduced by the commission.--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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