Major International Business Headlines Brief::: 12 August 2020

Wed Aug 12 05:23:41 CAT 2020

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Major International Business Headlines Brief::: 12 August 2020

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ü  South Africa's manufacturing output falls 16.3% year on year in June

ü  Exxaro warns of hit to H1 profit but flags increased coal exports

ü  Sasol warns of annual loss as lower oil price and pandemic weigh

ü  Mauritius must brace for 'worst case scenario' after oil spill, says PM

ü  Egypt central bank seen holding interest rates steady

ü  Ivory Coast 2019/20 cocoa arrivals reached 2.004 mln t by July 31 -CCC data

ü  South African rand weakens in cautious trade

ü  Uganda central bank holds lending rates after two cuts

ü  Algeria's gas exports to fall sharply in 2025 -minister

ü  Botswana diamond exports fall by two thirds on COVID-19

ü  'Bullying' Apple fights couple over pear logo

ü  Boris Johnson warns 'long, long way to go' for UK economy

ü  Stilton drives wedge between UK-Japan Brexit deal

ü  Uber and Lyft drivers are employees, says US judge

ü  Debenhams to cut 2,500 more jobs amid pandemic

ü  Apple Daily: Company sees huge rise in stock after crackdown

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South Africa's manufacturing output falls 16.3% year on year in June

JOHANNESBURG (Reuters) - South Africa’s manufacturing output fell 16.3% year on year in June after contracting by 32.4% in May, the statistics agency said on Tuesday.

Factory production however was up 16.8% in June month on month, but declined 30.2% in the three months to the end of June, Statistics South Africa said.

Exxaro warns of hit to H1 profit but flags increased coal exports

JOHANNESBURG (Reuters) - Exxaro Resources Ltd said on Tuesday first-half net income was likely to fall by as much as 34% due to one-off items though it expected higher coal exports and a favourable exchange rate to boost core earnings.

Exxaro said headline earnings per share, the main profit measure for companies in South Africa, for the six months ended June, would be between 11.42 rand($0.65)to 14.20 rand per share, or 18% to 34% lower. This is compared with 17.30 rand a year earlier.

HEPS were partly hurt by the accounting of a non-controlling interest for outside shareholders of Eyesizwe RF Proprietary, which is a special purpose private company that holds a 30% shareholding in Exxaro. It did not elaborate. It added that the results for the first-half and in the prior-year period were also influenced by various other once-off items.

However, earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to increase by 12% to 28%, cheering investors who pushed up its shares rose more than 2%.

“Our own managed operations were resilient, resulting in higher commercial coal revenue supported by record coal export volumes, albeit at lower U.S. dollar prices, but benefiting from a weaker exchange rate during the period,” the company said in a statement.

The coal miner was deemed an essential service during South Africa’s lockdown, which lasted from late March to the end of May.

Exxaro is expected to release its interim results on Aug. 13.

($1 = 17.6037 rand)

Sasol warns of annual loss as lower oil price and pandemic weigh

JOHANNESBURG (Reuters) - South Africa’s Sasol warned on Tuesday it will report an annual loss after a drop in oil and chemical prices and the impact of the coronavirus pandemic hit earnings.

The world’s top producer of motor fuel from coal said its headline loss per share is expected to be between 8.72 rand ($0.4949) and 14.86 rand in the year to June 30, compared with headline earnings of 30.72 rand per share during the same period a year ago.

Sasol said lower global chemical and refining margins and a 18% decrease in the rand per barrel price of Brent crude oil had hurts earnings.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) is also expected to fall by as much as 37% to between 30 billion rand to 39.5 billion rand.

The company said it had recorded impairments in some of its cash generating units after a weakening economy and the fair value impact of starting discussions to find a partner for its U.S. Base Chemicals assets.

Sasol has embarked on a review of its assets and set out to find a partner at its U.S. Base Chemicals operations in an effort to avoid a potential $2 billion rights issue after a slump in the oil price and the impact of the new coronavirus weighed on the company’s ability to pay its debt.

Investors have been concerned by the company’s debt, largely due to delays and cost overruns at its Lake Charles Chemicals project (LCCP) in Louisiana, that forced its former joint-CEOs to resign in a bid to restore shareholder confidence.

Sasol is expected to release its full-year results on Aug. 17.

($1 = 17.6200 rand)

Mauritius must brace for 'worst case scenario' after oil spill, says PM

NAIROBI (Reuters) - A Japanese ship that ran aground on a reef off Mauritius two weeks ago has now stopped leaking oil into the Indian Ocean but the island nation must still prepare for “a worst case scenario”, Prime Minister Pravind Jugnauth said late on Monday.

Conservationists said they were starting to find dead fish as well as seabirds covered in oil, increasing fears of an ecological catastrophe despite a massive local cleanup operation that includes making floating booms from leaves and human hair.

Jugnauth said the leak from a damaged oil tank on board the stricken vessel, the MV Wakashio, had stopped but that it still had 2,000 tonnes of oil in two other, undamaged tanks.

“The salvage team has observed several cracks in the ship hull, which means that we are facing a very serious situation,” Jugnauth said in a televised speech, parts of which were made available to Reuters by his office.

“We should prepare for a worst case scenario. It is clear that at some point the ship will fall apart.”

Mauritius has declared a state of emergency and former colonial ruler France has sent aid in what environmental group Greenpeace said could be a major ecological crisis. Japan has also sent help.

Tourism is a major contributor to the Mauritius economy, generating 63 billion rupees ($1.6 billion) last year.

DEAD FISH

“We are starting to see dead fish. We are starting to see animals like crabs covered in oil, we are starting to see seabirds covered in oil, including some which could not be rescued,” said Vikash Tatayah, conservation director at Mauritius Wildlife Foundation, a non-governmental organisation.

The nearby Blue Bay Marine Park, known for its corals and myriad fish species, has so far escaped damage but a lagoon containing an island nature reserve, the Ile Aux Aigrettes, is already covered in oil, he said.

At least 1,000 tonnes of oil is estimated to have leaked so far, with 500 tonnes salvaged.

Mauritians are making booms out of sugar cane leaves, plastic bottles and hair that people are voluntarily cutting off and floating them on the sea to prevent the oil spill spreading, island resident Romina Tello told Reuters.

“Hair absorbs oil but not water,” Tello, founder of Mauritius Conscious, an eco-tourism agency, said by phone.

“There’s been a big campaign around the island to get hair,” said Tello, 30, who spent the weekend helping clean black sludge from mangrove swamps.

Videos posted online showed volunteers sewing leaves and hair into nets to float on the surface and corral the oil until it can be sucked up by hoses.

Diving centres, fishermen and others have all joined in the cleanup effort, with guesthouses offering free accommodation to volunteers and hair salons offering discounts to those donating hair, Tello said.

The Mauritian government is also using sea booms to control the spill and vacuuming up oil from the water’s surface.

The MV Wakashio is owned by the Nagashiki Shipping Company and operated by Mitsui OSK Line (9104.T).

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Egypt central bank seen holding interest rates steady

CAIRO (Reuters) - Egypt’s Central Bank is likely to keep its main interest rates unchanged this week, even though inflation dropped to an eight-month low in July, a Reuters poll showed.

Of 11 analysts polled, nine forecast that the central bank would leave rates unchanged at its regular monetary policy committee meeting on Thursday. Two dissenting analysts forecast a 50 basis points cut.

Egypt’s annual urban consumer price inflation fell to 4.2% in July from 5.6% in June and 4.7% in May, its lowest since November, the central statistics agency CAPMAS said on Monday. This keeps it well below the central bank’s target range of 6% to 12%.

“We expect inflation to rise over the coming months but, crucially, it is likely to stay below the mid-point of the CBE’s target range,” said Jason Tuvey of Capital Economics in a research note. “Indeed, survey evidence suggests that underlying price pressures remain subdued.”

Some analysts expected the central bank to lower rates to boost economic growth, bogged down by the spread of coronavirus earlier this year.

The pandemic is expected to slow growth to 3.1% in the fiscal year that began on July 1, according to a Reuters poll last month. Before the pandemic, the government had expected 2020/21 growth of around 6%.

“Any cut will not be very useful for the economy at the current time, especially with the existence of many lending initiatives,” said Aboubakr Emam of Prime Holding.

The central bank for several months has been extending low-interest credit to tourism companies, real estate developers and small- and medium-sized enterprises hurt by the pandemic.

The coronavirus has devastated some of Egypt’s main sources of foreign currency. Tourism has been all but shut down since mid-March and remittances from workers abroad have slowed.

The government says tourism represents 5% of gross domestic product, but analysts say the figure may be as high as 15% if indirect jobs and spending as well as investment are included.

The International Monetary Fund in June approved a $5.2 billion 12-month stand-by arrangement to help Egypt cope with the pandemic and plug budget and balance-of-payments shortfalls. In May, it approved $2.77 billion package through its Rapid Financing Instrument.

The overnight lending rate is currently 10.25% and the overnight deposit rate 9.25%, the lowest rates since early 2016, before Egypt embarked on a three-year, IMF-backed economic reform programme.

Ivory Coast 2019/20 cocoa arrivals reached 2.004 mln t by July 31 -CCC data

ABIDJAN (Reuters) - Cocoa arrivals at ports in top grower Ivory Coast reached 2.004 million tonnes between Oct. 1 and July 31, down 6.4% from the same period last season, data from the cocoa regulator (CCC) showed on Monday.

Exporters had previously estimated that arrivals from Oct. 1 to August 2 would reach 2.043 million tonnes, compared with 2.160 million the previous year.

South African rand weakens in cautious trade

JOHANNESBURG (Reuters) - South Africa’s rand weakened early on Tuesday, remaining on the back foot after a national holiday that kept liquidity low and investors tentative ahead of local manufacturing data.

At 0700 GMT the rand was 0.07% weaker at 17.7000 per dollar, having touched 17.7800 overnight, its weakest level in close to 12 weeks.

The currency has suffered sharp losses in the past two weeks, losing around 8% of its value against the dollar as sentiment towards emerging market currencies soured with a pickup in the global economy seeming to be slower than initially hoped.

In the past session, stalled talks in the U.S. Congress over a stimulus deal kept investors cautious, leaving the rand with little forward momentum.

Statistics South Africa publishes June manufacturing figures at 1100 GMT. The figures will give investors some idea of the pace of the economic recovery since the easing of lockdown restrictions allowed for more activity.

Bonds also weakened in early trade, with the yield on the benchmark 2030 government issue adding 2 basis points to 9.255%.

Uganda central bank holds lending rates after two cuts

KAMPALA (Reuters) - Uganda’s central bank left its benchmark lending rate unchanged at 7% on Monday, pausing after two straight cuts aimed at helping revive economic growth hit by the COVID-19 pandemic.

In line with other central banks around the world, policymakers in the East African nation embarked on an easing round at the start of the coronavirus crisis, to try to limit the damage to the economy.

“(The easing stance) provided a foundation for the recovery of economic activity as the lockdown is relaxed,” the bank said in a statement.

The World Bank expects economic growth in Uganda to fall as low as 0.4% in 2020 from 5.6% last year, as the effects of the virus batter sectors including tourism, exports and manufacturing.

Policymakers cut a total of 200 basis points during their meetings in April and June to accelerate the flow of cheap credit to businesses struggling from the effects of a lockdown the government implemented to curb the spread of the new coronavirus.

The central bank expects economic growth in the 2020/21 fiscal year in the range of 3.0-4.0 percent, said its governor, Emmanuel Tumusiime-Mutebile, in a statement.

“The economic outlook is extremely uncertain, largely because of the unpredictable intensity and duration of the pandemic,” he said, adding the possibility of a widespread and possibly more severe second wave of COVID-19, is a major risk.

Uganda implemented one of the Africa’s tightest anti-coronavirus lockdowns that included shuttering all businesses but the most essential, banning all vehicle movement and public gatherings.

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Algeria's gas exports to fall sharply in 2025 -minister

ALGIERS (Reuters) - Algeria’s gas exports will drop to 26 billion to 30 billion cubic metres per year in 2025 from 45 billion in 2020, energy minister Abdelmadjid Attar told Ennahar TV.

“Exports in the period 2025-2030 will be between 26 to 30 billion cubic metres per year,” Attar told Ennahar.

The decline is mainly due to stagnant output, a rise in domestic consumption, and insufficient investment.

Algeria’s gas exports peaked in 2005 at 64 billion cubic metres.

It exported 51.4 billion cubic metres in 2018.

Algeria derives 95% of its foreign revenue from oil and gas sales.

Attar has also said that an international tender for exploration will be launched in the beginning of 2021, hoping that it will attract foreign investors.

Algeria has passed an energy law at the end of 2019, but investors are still awaiting publication of the regulations to decide whether to come to Algeria or not.

Botswana diamond exports fall by two thirds on COVID-19

GABORONE (Reuters) - Botswana’s rough diamond exports plunged 68% percent in the second quarter of the year, data published by the central bank showed on Friday, as the Coronavirus pandemic hit demand while global travel restrictions hurt trading.

In a bid to curb the spread of the virus, Botswana closed its borders in March, locking out international buyers from centres such as Mumbai, Antwerp and China who traditionally travel to Gaborone ten times a year to view and buy diamonds.

Exports of diamonds from Debswana, a joint venture between Botswana and diamond mining giant De Beers, a unit of Anglo American, stood at $293 million in the second quarter of 2020, from $916 million in the preceding period.

No exports were recorded in May, while only $20 million worth of diamonds were exported in June, the Bank of Botswana’s data showed.

De Beers, which gets about 70% of its supply from Botswana registered a net loss of $214 million in the first half of the year, as rough sales plunged by more than half to $1 billion, the company said in its results last week.

The fall in diamond exports is expected to hurt Botswana’s balance of payments deficit, as diamonds constitute 70 percent of the country’s exports.

Through the partnership with De Beers, Botswana also gets about 30% of its fiscal revenues from diamonds. It has so far recorded just 800 COVID-19 cases and only two deaths, but its economy has been severely hit.

($1 = 11.7925 pulas)

'Bullying' Apple fights couple over pear logo

When Natalie Monson started her food blog 11 years ago, she didn't expect to end up embroiled in a fight with the world's most valuable company.

But the US small business owner is now battling Apple for the right to use a pear in the logo on her recipe app.

In a patent filing, Apple said the image was too similar to its own logo and would hurt its brand.

Ms Monson says the tech giant is simply "bullying" and she feels a "moral obligation" to fight back.

More than 43,000 people have already signed the petition she and her husband Russ, owners of the Super Healthy Kids website, created last week to try to pressure the company to back down.

"This is a real world example of a small business being destroyed by a giant monopoly because they don't have accountability," Mr Monson told the BBC. "That was so frustrating to us that we thought we had to do something. We can't just be the next victim on the list."

Apple did not respond to a request for comment.

'Similar commercial impression'

In its filing with the US patent office, the firm says the Monsons' pear logo "consists of a minimalistic fruit design with a right-angled leaf, which readily calls to mind Apple's famous Apple Logo and creates a similar commercial impression, as shown in the following side-by-side comparison".

It asks regulators to reject the Monsons' trademark application, which the couple first filed in 2017 on behalf of their recipe and meal planning app, Prepear.

Ms Monson said the comparison took them by surprise. The shape of the pear and leaf, which they worked on with a designer, was supposed to allude to the letter "P" in the app's name, she said.

"We had no intention or any awareness that it was copying any logo at all," she said. "We thought it was very unique and designed it to be so."

"First we were very surprised and then I would say our second reaction was definitely scared," she added. "Like, 'ok where do we go from here? What does this mean?'"

'You wonder if it's a joke'

When the Utah-based couple started planning Prepear five years ago, they envisioned the app as a platform where food bloggers could upload recipes, which subscribers could access to plan meals and create shopping lists.

They now have about 21,000 monthly active users, including 3,000 customers who pay the annual $59 fee, according to Mr Monson, an accountant by training. The app, along with the Super Health Kids site, supports five staff, including the couple.

Mr Monson said he initially thought it was a misunderstanding and the two sides would be able to resolve the dispute amicably. The logo has been approved in other countries, including the UK, without dispute and American patent officials hadn't found a problem, he noted.

As a final step before approval, the patent office published their application in late 2019 drawing Apple's objection.

"It just seems so ridiculous on its face," he said. "You wonder if it's a joke."

Last week, as it became clear that it was not, the couple spoke out on social media, drawing attention to other instances of Apple's trademark objections and noting that concerns about legal costs had prompted them to let go one of their employees.

Their story was picked up by iPhone in Canada and has since spread, drawing fresh attention to debates about whether tech giants are abusing their powers.

"We're honestly overwhelmed by how supportive people have been," Mr Monson said. "It's incredible to see how many people share the same frustration that made us decide to take this public."

Some of the people reaching out have offered legal and design help, so Mr Monson said he has no plans to back down in the fight anytime soon.

"We're going to take it all the way," he said.--BBC

Boris Johnson warns 'long, long way to go' for UK economy

Boris Johnson has warned the UK has a "long, long way to go" before the economy improves, after official figures showed the largest drop in employment in over a decade.

"Clearly there are going to be bumpy months ahead and a long, long way to go," the Prime Minister said.

However, he said parts of the economy were "showing great resilience".

Between April and June, the number of people in work fell by 220,000, the Office for National Statistics said.

The drop in the number of people employed was the largest quarterly decrease since May to July 2009, the depths of the financial crisis.

Mr Johnson said he had "absolutely no doubt" that government schemes would "help this country get through it", adding: "it will get through it stronger than ever before".

The youngest workers, oldest workers and those in manual occupations were the worst hit during the pandemic, the ONS added.

The figures do not include the millions of people who are furloughed, those on zero-hours contracts but not getting shifts, or people on temporary unpaid leave from a job, as they still count as employed.

As such, they do not capture the full impact of the pandemic. Similarly, the UK unemployment rate was estimated at 3.9%, largely unchanged on the year and the previous quarter.

Jonathan Athow, deputy national statistician at the ONS, said: "The groups of people most affected are younger workers, 24 and under, or older workers and those in more routine or less skilled jobs.

"This is concerning, as it's harder for these groups to find a new job or get into a job as easily as other workers."

How bad is this likely to get?

The UK economy has been battered by the coronavirus pandemic, but unemployment has not surged as much as feared because large numbers of firms have furloughed staff.

However, analysts said unemployment was set to worsen in coming months as the scheme wound down, warning of a looming "cliff-edge" and a "lull before the storm".

>From restaurants to retailers, many UK businesses are already planning job cuts with 140,000 redundancies announced in June alone.

According to the ONS, the number of average hours worked continued to fall in April-June, reaching record lows both on the year and on the quarter.

The number of people claiming universal credit - a benefit for those on low pay as well as unemployed people - rose to 2.7 million in July, up by 117% since March.

Can we answer your questions on work and redundancy?

Theatre technician Charlotte Baker, 29, is out of work as a result of the coronavirus crisis.

She started a new job at the Fairfield Halls in Croydon in September last year and was furloughed in March.

In June, she was made redundant, even though she could have been kept on furlough.

Now management at the Fairfield Halls has said the venue will not reopen until April next year, forcing her to contemplate a possible career change.

"It's definitely an uphill struggle and it's proving harder than previous ones," she told the BBC. "It's hard to have a positive outlook."

Charlotte has been looking into doing a carpentry course, but to obtain the necessary City and Guilds qualification would require her to spend £5,000 on training.

"It's a mountain to climb. I wouldn't mind climbing that mountain if it's something that I'm passionate about, but I'm not sure," she says.

"I'm hoping to make a decision by the end of August."

Jobless in the pandemic: 'It's hard to stay positive'

How is this affecting people who still have jobs?

Between April and June there were falls in pay for those still working, with regular pay levels down 0.2% compared with a year earlier - the first negative pay growth since records began in 2001.

The number of people on zero-hours contracts also increased to more than one million.

"Early indicators for July 2020 suggest that the number of employees in the UK on payrolls is down around 730,000 compared with March 2020," said the ONS.

It believes the main reason this is more extreme than the fall in employment is because of workers who have a job but are not doing any paid work at the moment.

Redundancy: 'It’s been stressful and upsetting'

Which sectors are hiring and which are cutting back?

It added that a large number of people were estimated to be temporarily away from work, including furloughed workers - approximately 7.5 million in June 2020, with more than three million of these being away for three months or more.

The number of workers covered by the furlough scheme has since risen to 9.6 million by 9 August, and has yet to record a fall in any week since it began, separate statistics published on Tuesday by HM Revenue and Customs show.

The ONS said there had also been a sharp fall in the number of self-employed people between April and June.

It said there were 4.76 million self-employed people, 14.5% of all people in employment, a record 238,000 fewer than the previous quarter.

Is it all bad news?

If you're a glass-half-full sort of person, there is some less than awful news in the latest labour market figures.

The number of vacancies, for example, rose from its record low by 10% in May to July as lockdown restrictions were eased. The number of hours worked saw a record drop in the second quarter from April to June, but in July it was down by only 3%, less than half the fall in May and June.

However, there are some less jolly signs. The number on employer payrolls had only dropped marginally in the previous two months, but saw a much bigger drop in July, down 114,000, in spite of the reopening of many shops, restaurants and pubs.

And employers are increasingly making employees bear the risk that there isn't enough work for them to do, with the number of zero-hours contracts rising above one million for the first time.

And then there's the record drop in self-employment. And all this in spite of the government spending more than £40bn trying to protect employment through furlough and self-employed income support.

Unemployment tends to peak well after economic shocks have been and gone: this time will be no different.

What are economists saying?

Ruth Gregory, senior UK economist at Capital Economics, said the latest employment figures were "the lull before the storm".

She added: "The cracks evident in the latest batch of labour market data are likely to soon turn into a chasm, with the unemployment rate rising from 3.9% to around 7% by mid-2021."

She said further rises in unemployment in the coming months were "all but inevitable as the furlough scheme unwinds".

Capital Economics forecasts that the unemployment rate will peak at 7% in mid-2021 and remain above its pre-pandemic level of 4% until the end of 2022.

Ms Gregory said this suggested that the economic recovery would be "slow going".

UK employment falls by biggest amount in a decade

Jeremy Thomson-Cook, chief economist at Equals Money, said the figures showed the true level of those out of work had been "very effectively lowered by the government's furlough scheme" and that the worst lay ahead.

"Unfortunately, the end of the furlough scheme will present a cliff-edge, statistically and economically, for those currently relying on government support to make up their wages."

What's the political reaction?

Chancellor Rishi Sunak said the figures showed that the government's "unprecedented support measures" were working to "safeguard millions of jobs and livelihoods that could otherwise have been lost".

Shadow work and pensions secretary Jonathan Reynolds said it was "extremely worrying" that older workers, the self-employed and part-time workers had been hit hardest.

"Labour has repeatedly warned the government their one-size-fits-all approach will lead to job losses. These figures confirm what we feared - Britain is in the midst of a jobs crisis."--BBC

Stilton drives wedge between UK-Japan Brexit deal

A post-Brexit trade deal between the UK and Japan may have met an unlikely obstacle - stilton cheese.

On Friday, the two sides said they hoped to agree the details of a post-Brexit trade agreement by the end of the month.

The Department for International Trade said talks are ongoing.

But progress has reportedly been blown off course after International Trade Secretary Liz Truss requested better terms for British blue cheeses.

The Financial Times, which first reported that talks had hit a snag, said Ms Truss may be looking for a symbolic victory, as sales of blue cheese to Japan from the UK were only £102,000 last year.

A better deal for the products may mean her department could claim a slightly more favourable deal than the one the EU secured with Japan last year, when the two sides secured a cut of €1bn of tariffs on food.

Dairy and other food products are among the EU's biggest exports to Japan.

Ms Truss is a long-term fan of UK produce. In 2014, when she was environment secretary she told the Conservative Party conference it was a "disgrace" that "we import two-thirds of our apples, nine-tenths of our pears, and two-thirds of our cheese".

The Department for International Trade declined to say more about the report, other than that talks are ongoing and point to Ms Truss's comments from Friday, when she said a consensus had been reached between the UK and Japan and said a deal was expected by the end of the month.

"Negotiations have been positive and productive, and we have reached consensus on the major elements of a deal - including ambitious provisions in areas like digital, data and financial services that go significantly beyond the EU-Japan deal," she said in a statement at the time.

"Our shared aim is to reach a formal agreement in principle by the end of August."--BBC

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Uber and Lyft drivers are employees, says US judge

Ride-hailing companies Uber and Lyft must classify their drivers as employees rather than freelancers, a judge in California has ruled.

The firms have 10 days to appeal against a preliminary injunction.

The work status is controversial. Gig economy firms say it means drivers can work on their own terms, while critics say they have no protection.

A new rule in California called Assembly B5 entitles gig economy workers to holiday and sick pay.

It came into force on 1 January and sets three criteria for defining whether a worker is independent or an employee.

These are listed on the California state government website and include whether the "hiring entity" has control and direction over workers in terms of their performance, and whether the jobs offered are different from the company's main line of work.

Uber and Lyft had argued that they should not be considered "hiring entities".

Judge Ethan Schulman disagreed, and said this contradicted claims the firms had made elsewhere.

"Defendants may not evade legislative mandates merely because their businesses are so large that they affect the lives of many thousands of people," he wrote.

An Uber spokeswoman said: "The vast majority of drivers want to work independently, and we've already made significant changes to our app to ensure that remains the case under California law."

Lyft said that drivers "do not want to be employees".

Media captionTwo Uber drivers take opposing views on how the company should treat them

The status of app-based drivers is set to be put to the vote in a referendum in California in November.

Mike Feuer, Los Angeles City Attorney, described the ruling as "a resounding victory" for drivers.--BBC

Debenhams to cut 2,500 more jobs amid pandemic

Struggling department store group Debenhams says it will cut 2,500 more jobs as it struggles to survive the coronavirus pandemic.

This is on top of the 4,000 announced since May, meaning the retailer will have cut a third of its workforce.

The cuts will be mainly across its UK stores and distribution centre, but it said no new shops were slated to shut.

Shop workers' union Usdaw reacted angrily to the news, saying legal procedures had not been followed.

By law, mass redundancies have to be subject to a consultation period. Usdaw said it was preparing a legal challenge on behalf of members affected.

"We have been contacted by members who say they are being made redundant by conference call, with no meaningful consultation or proper notice period, as required by law," said union national officer Dave Gill.

"That is an appalling way to treat staff."

Debenhams declined to comment on Usdaw's statement.

'Difficult decisions'

In April, Debenhams fell into administration for the second time in a year as coronavirus heaped pressure on the business.

The firm said the current trading environment for retailers was still "a long way from returning to normal".

How have you been affected by job losses at Debenhams? Tell us about your experiences by emailing haveyoursay at bbc.co.uk.

Earlier this year, it said 20 of its stores would remain permanently closed because of the impact of the pandemic.

Debenhams said on Tuesday: "Such difficult decisions are being taken by many retailers right now, and we will continue to take all necessary steps to give Debenhams every chance of a viable future.

"We have to ensure our store costs are aligned with realistic expectations," it added.

The chain said that people affected had been informed and thanked them for their "service and commitment".

"We have successfully reopened 124 stores post-lockdown, and these are currently trading ahead of management expectations," it said.

Retail redundancies

Debenhams could remain in administration for the rest of this year, as lenders wait to see how it performs post-lockdown and in the crucial Christmas trading period.

Like many of its competitors, the retailer was already ailing before the pandemic forced it to suspend trading at its department stores.

The news of the latest job cuts came after the British Retail Consortium said the number of visits to High Streets was still down significantly as people shopped online instead.

The BRC said some retailers were continuing to struggle because of the coronavirus crisis. It made a fresh call for government help with rents.

Other High Street names have also announced job losses as they fight to stay afloat.

Last week, WH Smith said it was cutting 1,500 jobs - 11% of its workforce - after the lockdown caused sales to plummet.

DW Sports, John Lewis, Marks and Spencer, Boots and Selfridges are among other big names to announce redundancies.

It's less than two weeks into August and at least another 10,000 jobs have been lost as the furlough scheme starts to wind down.

Here, courtesy of the Press Association news agency, is a list of some major employers that have announced that jobs will go, or are at risk, since the start of the pandemic.--BBC

Apple Daily: Company sees huge rise in stock after crackdown

The holding company of Hong Kong's Apple Daily newspaper has seen its stock rise fourfold, a day after the arrest of its owner Jimmy Lai.

Mr Lai was arrested on Monday under a controversial security law imposed by Beijing, but has now been bailed.

The pro-democracy tycoon was among 10 people detained on charges including colluding with foreign forces.

But Hong Kongers have rallied behind the newspaper, buying stocks in the company.

The stock closed on Tuesday at HK$1.10, up from its close of HK$0.255 just 24 hours before.

The paper, which offers a rare, unvarnished take on Hong Kong and China's leadership, said more than 500,000 copies were printed, five times the usual number.

The Hong Kong paper that pushed the boundary

In extraordinary scenes streamed by the paper on Monday, a handcuffed Mr Lai was led through his newsroom as nearly 200 police officers raided the building.

The move sparked global condemnation of the escalating crackdown on dissent.

US Secretary of State Mike Pompeo said China had "eviscerated Hong Kong’s freedoms".

On Tuesday, the newspaper's front page showed an image of Mr Lai in handcuffs with the headline: "Apple Daily must fight on."

He was released on bail early on Wednesday local time and greeted by a crowd of cheering supporters.

Hong Kongers rally behind the paper

In some parts of the city Hong Kongers were seen queuing for a copy as early as 02:30 as vendors reported selling out of the popular tabloid founded by Mr Lai.

"(I bought these) to hand them out to others, I'm afraid a lot of people can`t get their copies," a woman, who only gave her name as Chan, told the BBC while buying 16 copies.

Online subscriptions are also reportedly up 20,000 this week.

Shares of holding company Next Digital, which had initially dropped on Monday, almost reached a 12-year high on Tuesday.

This came as activists called for supporters to buy the stock.

However, there are concerns that investors with ties to the mainland could also be buying up shares.

Louise Wong, a senior executive at Next Digital, told the Nikkei Asian Review that "if someone could get over 5% of the holdings, he or she could ask for a seat on the board".

Global outcry

Mr Lai, who is viewed as a hero by many in Hong Kong for his direct criticism of Beijing’s top leadership, is the highest-profile detainee under use of the new legislation so far.

But on the mainland, he has long been labelled a traitor.

Hong Kong's rebel mogul and pro-democracy voice

China's new law: Why is Hong Kong worried?

Hours after his arrest, prominent youth activist Agnes Chow and Wilson Li, a freelance journalist, were also arrested under the same law.

Ms Chow was released on bail late on Tuesday. She told reporters: "It's very obvious that the regime is using the national security law to suppress political dissidents."

The arrests renewed criticism from Washington, London and the United Nations of attacks on the city’s freedoms.

“Further proof that the CCP [Chinese Communist Party] has eviscerated Hong Kong’s freedoms and eroded the rights of its people,” he wrote.

Similar sentiments were expressed in Britain, which has already said it will suspend its extradition treaty with Hong Kong and offer a pathway to citizenship for many of the city's residents, in the light of the new law.

"This is further evidence that the national security law is being used as a pretext to silence opposition," a spokesman for Prime Minister Boris Johnson told Reuters. "The Hong Kong authorities must uphold the rights and freedoms of its people."

The controversial security law introduced to Hong Kong in June had already prompted some of the city’s highest-profile activists to flee overseas in anticipation of a broader clampdown on the city’s freedoms.

Pro-democracy protests flared in Hong Kong last year over plans to allow extradition from the territory to mainland China. While this proposal was eventually withdrawn, the demonstrations carried on, to reflect widespread demands for democratic reforms.--BBC

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

Old Mutual Zimbabwe

AGM

virtual

12  August 2020 | 3pm

CBZ

AGM

Virtual

14  August 2020 | 6pm

Lafarge

AGM

Virtual

18 August 2020  | 12pm

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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