Major International Business Headlines Brief::: 06 February 2020

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Major International Business Headlines Brief::: 06 February 2020

 


 

 


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

 


 

 


 

 

ü  South Africa's Ramaphosa open to Eskom debt proposal

ü  First payments in South African silicosis settlement expected in Q2

ü  South Africa's rand firms for third straight session

ü  Saudi Telecom must offer to buy remaining 45% in Vodafone Egypt -
regulator

ü  Morocco’s unemployment rate slips to 9.2% in 2019

ü  Qatar Airways in talks to buy 49% RwandAir stake, interested in
increasing LATAM investment

ü  Nigeria sees exponential mining sector growth within five years -minister

ü  Poundland-owner Pepco faces 'almost inevitable' sale by Steinhoff

ü  IMF lowers Uganda growth projection, cites oil investment delays

ü  Kenya private sector activity down in January –PMI

ü  Uber self-driving cars allowed back on California roads

ü  Vaping: Companies feel burn from US lawmakers

ü  UK tech giant founder arrested over US extradition

ü  Coronavirus: Cathay Pacific asks staff to take unpaid leave

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

South Africa's Ramaphosa open to Eskom debt proposal

JOHANNESBURG (Reuters) - South African President Cyril Ramaphosa is
“favourably disposed” to a proposal by the country’s largest trade union
federation to use funds from a state-owned asset manager to reduce the debt
of beleaguered utility Eskom, his spokeswoman said on Wednesday.

 

Union federation COSATU proposed a package of rescue measures for Eskom -
which struggles to meet the country’s power needs and doesn’t generate
enough cash to service its debts - at a meeting with Ramaphosa and business
leaders on Monday.

 

The cornerstone of its plan is for the Public Investment Corporation (PIC)
and two local development finance groups to invest about 250 billion rand
($17 billion) in Eskom via a special purpose vehicle to reduce its 450
billion rand debt.

 

International ratings agencies regularly cite Eskom as one of the biggest
risks to South Africa’s strained public finances, and Moody’s is the only
major agency left that hasn’t downgraded the country’s sovereign debt rating
to junk.

 

The root causes of Eskom’s financial woes lie partly in massive cost
overruns at two huge coal plant projects, but it has also been hamstrung by
mismanagement and corruption scandals under previous executives.

 

Business leaders agree Eskom’s debts must be drastically reduced but they
are wary of interfering with the investment mandates or risk-management
processes of the PIC or the other two local groups, the Development Bank of
Southern Africa (DBSA) and the Industrial Development Corporation (IDC).

 

The PIC is one of Africa’s largest fund managers with more than 2 trillion
rand in assets and stakes in many of the biggest companies listed on the
Johannesburg Stock Exchange.

 

Although state-owned, the bulk of its funds are invested on behalf of
private individuals, mainly government employees.

 

Ramaphosa agreed at the meeting on Monday that the mandates or fiduciary
duties of the PIC and other institutions should not be undermined, his
spokeswoman Khusela Diko told Reuters.

 

The PIC said any approach for funding must be supported by a credible
business case and geared towards delivering sustainable returns for its
clients. It said it was already a major investor in Eskom bonds, as provided
for by its investment mandates.

 

Government, business and labour representatives are holding further talks
about the COSATU proposal on Wednesday.

 

PRESCRIBED ASSETS

COSATU - the Congress of South African Trade Unions - is a key ally of
Ramaphosa’s governing African National Congress (ANC), so the federation’s
policy proposals carry weight within government circles and the ruling
party.

 

COSATU’s parliamentary coordinator Matthew Parks said the aim was to agree a
“social compact” on Eskom before Ramaphosa’s state of the nation address on
Feb. 13.

 

Parks said the debt proposal could free up money for maintenance at Eskom’s
faulty coal-fired power stations. The proposal has not been formally
discussed with the PIC, he said.

 

Among its other Eskom proposals, COSATU wants to halt the privatisation of
Eskom assets and make the utility renegotiate old renewable energy deals,
which it considers punitive.

 

Business leaders oppose some of the suggestions.

 

“While business is comfortable with some of COSATU’s conditions, others are
not practical or will result in an inability to manage costs,” said Martin
Kingston, executive chairman of Rothschild & Co South Africa.

 

“For instance, the sale of Eskom assets should not be restricted in an
appropriately regulated electricity supply industry,” said Kingston, who
attended Monday’s meeting.

 

Another contentious COSATU proposal is for the government to introduce a
requirement for pension funds to invest money in development and
infrastructure projects.

 

The proposal to earmark funds - known as “prescribed assets” - worries
analysts who fear it will cause investor panic and discourage savings.

 

Diko said Ramaphosa called on Monday for “a broader discussion around how
financial institutions invest their money, since a relatively small portion
of their funds were being directed to developmental projects”.

 

($1 = 14.7287 rand)

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

First payments in South African silicosis settlement expected in Q2

CAPE TOWN (Reuters) - The first payments to miners who contracted the fatal
lung diseases silicosis and tuberculosis from a 5 billion rand ($340
million) class action settlement by gold producers are expected in the
second quarter of 2020, a lawyer for the companies said on Wednesday.

 

The companies involved are Harmony Gold, Gold Fields, African Rainbow
Minerals,Sibanye-Stillwater, AngloGold Ashanti and Anglo American South
Africa. The latter no longer hasgold assets but at one time was a bullion
producer. The most far-reaching class action settlement ever reachedin South
Africa followed a long legal battle by miners to wincompensation for
illnesses they say they contracted over decadesbecause of negligence in
health and safety. The exact number of eligible claimants is unknown but
isexpected to be less than 100,000, attorney Michael Murray told a mining
industry conference, the Mining Indaba, in Cape Town. The class action suit
was launched in 2012 on behalf ofminers suffering from silicosis, an
incurable disease caused byinhaling silica dust from gold-bearing rocks, and
a settlementwas agreed by mining firms in 2018. It causes shortness of
breath, a persistent cough and chestpains, and makes people highly
susceptible to tuberculosis.

 

 

 

South Africa's rand firms for third straight session

JOHANNESBURG (Reuters) - South Africa’s rand firmed for the third straight
session on Wednesday, as reports of medical breakthroughs in the fight
against the new coronavirus in China lifted risk appetite.

 

At 1500 GMT, the rand traded at 14.7630 per dollar, 0.18% firmer than its
previous close.

 

“The rand is clearly more concerned with external drivers with positive
developments in the coronavirus saga simulating appetite for the local
currency,” said Lukman Otunuga, senior research analyst at FXTM.

 

“If the market mood continues to improve, the rand could trade towards
14.60. However, it is worth keeping in mind that concerns over the
coronavirus outbreak remain a major market.”

 

Media reported that a Chinese university had found a drug to treat people
with the virus, while researchers in Britain had made a “significant
breakthrough” in finding a vaccine.

 

In the equities market, stocks surged for a second straight day, helped by
improved risk appetite, Sasol and Ascendis Health gains.

 

The Johannesburg All-Share index climbed 1.07% to 57,426 points, while the
Top-40 index rose 1.16% to 51,484 points.

 

The All-Share index was led higher by struggling health and wellness firm
Ascendis, up 5% to 1.05 rand, after it said it expects normalised earnings
before interest, taxes, depreciation and amortisation (EBITDA) for the six
months to Dec. 31 to either fall by 1% or rise by 10%.

 

Petrochemicals group Sasol topped the blue-chip index, up 4.47% to 245.50
rand as oil prices jumped by more than 3% on Wednesday after reports on the
coronavirus drug.

 

Gold stocks took a breather as risk appetite amongst investors led to a
decrease in demand for the safe haven asset.

 

In fixed income, the yield on the benchmark bond was down 4 basis points to
7.910%.

 

 

 

Saudi Telecom must offer to buy remaining 45% in Vodafone Egypt - regulator

CAIRO (Reuters) - Saudi Telecom Co (STC) must offer to buy the 45% of
Vodafone Egypt owned by Telecom Egypt if it goes ahead with a $2.4 billion
purchase of Vodafone Group’s stake in the company, Egypt’s financial
regulator said.

 

STC struck a preliminary deal on Jan. 29 to buy Vodafone Group’s 55% stake
in Vodafone Egypt. Another 45% is held by Telecom Egypt, itself owned 80% by
the Egyptian government and 20% as free-floating shares on the stock
exchange.

 

With 44 million subscribers and a 40% market share, Vodafone Egypt is the
country’s biggest mobile operator.

 

In a letter released on Wednesday by Telecom Egypt, Egypt’s Financial
Regulatory Authority (FRA) confirmed the STC offer would be subject to a
1992 law requiring a mandatory tender for any outstanding shares.

 

“Telecom Egypt is closely following the aforementioned potential transaction
to consider all of its possible investment options and opportunities,”
Telecom Egypt said in a stock exchange disclosure on Wednesday.

 

Telecom Egypt may well be tempted to sell at least part of its stake,
analysts said.

 

Wael Ziada, a former telecoms analyst and now head of investment company
Zilla Capital, said STC would have little problem absorbing the extra cost
and that Telecom Egypt could use the extra funds after having launched its
own mobile network in 2017 under the brand “We”.

 

“Setting up a separate mobile network has been very expensive for Telecom
Egypt and sent it from being a cash rich operator into one with debt of over
15 billion Egyptian pounds ($950 million),” Ziada said. “It may be tempted
to have an injection of cash.”

 

Allen Sandeep, head of research at Naeem Brokerage, suggested Telecom Egypt
might opt to sell at least a portion of its stake.

 

“Selling all of its stake could be a good move from a near-term perspective,
retaining part of it might not be a bad move either,” he said. Vodafone
Egypt is the most profitable telecom operator in the country.”

 

($1 = 15.7500 Egyptian pounds)

 

 

 

Morocco’s unemployment rate slips to 9.2% in 2019

RABAT (Reuters) - Morocco’s unemployment rate dropped slightly last year to
9.2% from 9.5% in 2018, the planning agency said on Wednesday, as heavy job
losses in rural areas were offset by gains in towns and cities.

 

Farm income hinges on volatile rainfall levels in the semi-arid North
African country, pushing more rural people to seek work in urban areas.
While 85,000 jobs were shed in the countryside last year, cities created
250,000.

 

About a quarter of people aged 15 to 24 were unemployed, including 13.5% of
young women and 15.7% of young college and university graduates.

 

The rate of underemployment was stable at 9.2% in 2019. Informal labour
abounds in Morocco, making it hard to produce reliable employment figures.

 

The planning agency expects Morocco’s economy to grow 3.5% in 2020 after
2.3% last year, assuming average rainfall.

 

 

 

Qatar Airways in talks to buy 49% RwandAir stake, interested in increasing
LATAM investment

DOHA (Reuters) - Qatar Airways is in talks to buy a 49% stake in Africa’s
RwandAir, and is interested in doubling its holding in LATAM Airlines Group
to 20%, its chief executive said on Wednesday.

 

A stake in an African airline would widen its reach in one of the world’s
fastest growing aviation regions, and potentially help it bypass
restrictions imposed on it by some Arab states.

 

“We are very tough negotiators ... we will take our time to negotiate,”
Qatar Airways Chief Executive Akbar al-Baker told reporters in Doha.

 

Qatar Airways already owns stakes in British Airways-parent International
Airlines Group, China Southern, Cathay Pacific, and LATAM.

 

It bought some of its stakes in other airlines since once-lucrative markets
the United Arab Emirates and Saudi Arabia banned it from its airspace
following a regional political dispute.

 

Qatar Airways has been forced to fly longer routes to avoid the blocked
airspace of some of its neighbours.

 

The ban does not apply to non-Qatari airlines flying to Qatar. RwandAir
could potentially carry passengers from Africa over the blocked airspace to
the state-owned airline’s Doha hub without any airspace restrictions.

 

RwandAir could not be immediately reached for comment.

 

Qatar Airways agreed in December to take a 60% stake in a new airport in
Rwanda.

 

Baker, one of aviation’s most well-know executives, also said the airline
could be interested in increasing its holding in LATAM, and working with
fellow shareholder Delta Air Lines.

 

“When the right opportunity comes and at the right price we will look at
increasing our investment in LATAM,” he told Reuters.

 

Qatar Airways, which holds a 10% stake, would be interested in having a
stake that is the “same like Delta,” which is 20%, he said.

 

Delta surprised the industry when it announced in September it was taking a
$1.9 billion 20% stake in the South American airline group.

 

Qatar Airways has historically had a contentious relationship with Delta and
other major U.S. carriers, which have accused Gulf airlines of receiving
unfair government subsidies, distorting competition and costing Americans
jobs. The Gulf carriers have rejected such accusations.

 

However, Baker said had no ill-feeling towards Delta, and was willing to
work with the U.S. airline at its hub in Atlanta.

 

“We can transfer passengers on each other. We are the only Middle Eastern
carrier going into their hub so there is huge opportunity,” he said.

 

Qatar Airways has also expressed interest in taking a stake in India’s
IndiGo and Morocco’s Royal Air Maroc. A transaction with either airline has
yet to take place.

 

 

 

Nigeria sees exponential mining sector growth within five years -minister

CAPE TOWN (Reuters) - Nigeria expects its mining sector to account for 3% of
GDP over the next five years from just 0.3% currently as the government
seeks to diversify the economy away from oil, the minister for mines and
steel development said on Wednesday.

 

Olamilekan Adegbite said he expects “exponential growth” in the mining
sector, with gold, lead, zinc, limestone and coal among seven strategic
minerals identified for investment.

 

He said the West Africa nation had already attracted $600 million to develop
an iron ore project from African Natural Resources and Mines, the largest
single mining investment in years.

 

Nigeria has been trying to boost the sector as part of efforts to diversify
its economy. But insufficient geo-data, weak infrastructure and limited
enforcement of regulations has held the industry back.

 

“The short-term goal...is to raise the contribution of the mining sector
from 0.33 percent to 3 percent within the next five years,” Adegbite said.

 

“We’ve seen steady growth ... and we’re now poised for exponential growth as
investments start crystallising,” he told Reuters on the sidelines of an
African mining conference in Cape Town.

 

Africa’s largest economy has largely untapped deposits of minerals including
gold, tin and zinc but some 80 percent of mining is carried out on an
artisanal basis. Gold in the northwestern state of Zamfara is routinely
smuggled out of the country illegally to neighbouring Niger and Togo.

 

Adegbite said the government would require mining companies to sign
agreements with local communities, who remain unhappy with a perceived lack
of development and benefits, before investing.

 

“We’ve learnt our lessons from the oil industry and we’re not repeating that
mistake, so one of the major fundamental requirements before you can do
anything in Nigeria is local community agreements,” he said.

 

 

 

Poundland-owner Pepco faces 'almost inevitable' sale by Steinhoff

LONDON (Reuters) - The boss of Pepco Group, the owner of British discount
retailer Poundland, said it was “almost inevitable” the group would be sold
by its beleaguered South African parent Steinhoff.

 

Steinhoff, which has been battling the fallout from a 2017 accounting
scandal, said last year it was evaluating a range of strategic options for
Pepco Group, including a potential public listing.

 

On Monday Sky News reported that three private equity firms - Advent
International, Hellman & Friedman and Mid Europa Partners - had teamed up
for a possible bid for Pepco that could value it at more than 4.5 billion
euros ($5 billion).

 

“The restructuring arrangement that Steinhoff has with its creditors means
it’s almost inevitable we’ll be sold,” Pepco Group CEO Andy Bond told
Reuters on Wednesday after it updated on Christmas trading.

 

He said he was “genuinely open minded” on the various disposal options - a
private equity sale, initial public offering, or trade sale to an industry
peer - and added that it was “early days” in the process.

 

Bond, a former boss of supermarket group Asda, said if Pepco did get new
owners, he wanted to stay on.

 

“I’ve helped build this business. It’s a great business and I will want to
continue to deliver our ambition to be Europe’s biggest discount variety
business,” he said.

 

PEPCO BRAND GROWTH

Pepco Group, which also owns the PEPCO and Dealz brands in Europe, reported
a jump in revenue in the Christmas quarter and forecast more growth in the
rest of its 2019-20 financial year.

 

Revenue in its fiscal first quarter to the end of December rose 13.3% to
1.143 billion euros, reflecting a 14.8% increase in stores to 2,809, along
with a rise in like-for-like revenue of 3.9%.

 

The group highlighted the increased size of its PEPCO store portfolio in
Central and Eastern Europe, the start of the roll-out of the Dealz format in
both Poland and Spain, and reduced operating costs within Poundland,
including the renegotiation of a further 36 store leases.

 

The group is focused on expanding the PEPCO brand, which currently trades
from 1,898 stores, to fuel growth.

 

Bond said he was targeting the opening 300 PEPCO stores a year over the next
decade.

 

($1 = 0.9060 euros)

 

 

 

IMF lowers Uganda growth projection, cites oil investment delays

KAMPALA (Reuters) - Uganda’s economy is likely to grow by 6% in the
2019/2020 (July-June) financial year, down from an earlier projection of
6.3%, due to delays in the public investment needed to start oil production,
the International Monetary Fund (IMF) said.

 

“Downside risks have increased linked to uncertainty related to oil
production,” the Washington DC-based fund said in a statement published on
Wednesday. Its initial forecast had been issued last year.

 

It added that “the electoral period, and the complex external context” also
weighed on the growth outlook.

 

Delays in providing key pieces of infrastructure like a pipeline and a
refinery have prevented the start of oil production in the country.

 

Crude reserves in fields in Uganda’s west were discovered about 14 years ago
and authorities now say production may start at the earliest in 2022,
although ongoing disagreements with international oil firms may further
delay that date.

 

The fields are owned by France’s Total, China’s CNOOC and Britain’s Tullow
Oil, with each holding an equal stake.

 

Uganda is also due to hold a presidential election next year and incumbent
Presidential Yoweri Museveni,75, in power since 1986, is expected to seek
re-election.

 

He will likely face a strong challenge from pop star-turned- lawmaker Robert
Kyagulanyi who uses his popular music and youthful energy to amass support.

 

The IMF also said the government was experiencing “large expenditure
pressures” that were straining the budget and fuelling public borrowing. It
urged the government to keep to a realistic budget and maintain debt
sustainability.

 

Uganda’s public debt has ballooned in recent years due to large loans from
China and is seen surpassing the crucial 50% of GDP threshold in the
2021/2022 financial year.

 

The projected revenue for the 2019/20 financial year could fall short by 9%
amid delays in implementation of some planned tax-generating measures.

 

 

 

Kenya private sector activity down in January -PMI

NAIROBI (Reuters) - Kenya’s private sector activity dropped in January to a
level last hit in April, hurt by lower household demand and poor weather
that slowed output in many businesses, a survey showed on Wednesday.

 

The Markit Stanbic Bank Kenya Purchasing Managers’ Index (PMI) for
manufacturing and services fell to 49.7 in January from 53.3 in December.
Readings above 50 indicate growth.

 

“Overall activity levels contracted solidly at the start of the year, as
firms reported that a lack of money at households led to much softer demand
pressure,” the survey report said.

 

“Poor weather conditions also curbed output at many businesses.”

 

The finance ministry said in January economic growth probably slowed to 5.6%
last year, compared with government’s initial estimate of about 6%, and from
6.3% in 2018.

 

The ministry expects growth of 6.1% this year, while the central bank
forecasts economic output will expand 6.2% in 2020.

 

Kenya removed a cap on commercial lending rates in November. The cap, put in
place in 2016, was blamed for stifling private-sector credit growth,
especially to small businesses.

 

Jibran Qureishi, regional economist for East Africa at Stanbic Bank, said
this would help improve business conditions.

 

“Business confidence for future output soared, which doesn’t come as a
surprise given some of the recent reforms such as the repeal of the interest
rate capping law and ongoing clearance of private sector arrears,” he said.

 

- Detailed PMI data are only available under licence from IHS Markit and
customers need to apply for a licence.

 

 

Uber self-driving cars allowed back on California roads

Ride-hailing firm Uber has been issued a permit by the Department of Motor
Vehicles in California to test self-driving cars on public roads.

 

It comes nearly two years after one of Uber's self-driving cars was involved
in a fatal crash in Arizona.

 

Uber scaled back its autonomous car operations following the incident.

 

Receiving a permit in California - which has granted permits to 65 other
transport firms - is the latest step in Uber's revival of the programme.

 

California allows companies to test self-driving technology with a backup
driver in the car.

 

Before the fatal crash, Uber's self-driving cars were being tested in four
locations in North America - Phoenix, Pittsburgh, San Francisco and Toronto.

 

'A critical step'

Uber said it is considering using San Francisco, where the company is based,
again. It did not give a timeline for when it will resume testing.

 

"We do not have an update as to exactly when we'll resume autonomous
testing," the company said in a statement.

 

It added: "Receiving our testing permit through the California Department of
Motor Vehicles is a critical step towards that end in Uber's home city".

 

California has granted permits to 66 companies in total to test autonomous
vehicles, but Uber is the only one that has been involved in a fatal crash.

 

Uber stopped its testing on public roads following a crash in March 2018
that took the life of Elaine Herzberg, aged 49.

 

Ms Herzberg was crossing a poorly lit stretch of a multi-lane road with her
bicycle in Arizona when she was struck by a Volvo XC90 using Uber's
self-driving technology.

 

An investigation into the crash found the car's backup driver, Rafaela
Vasquez, had taken her eyes off the road moments before.

 

Records also showed that she was streaming a television show on her phone
during that time.

 

In 2019, prosecutors ruled that Uber was not criminally liable for the
crash. An earlier police report said the incident was "entirely avoidable".

 

Uber said its self-driving programme "underwent an overhaul" following the
incident.

 

Uber's self-driving operations resumed in Pittsburgh in 2018. The company
also plans to begin testing in Washington DC later this year.

 

Self-driving technology is seen as crucial for Uber's efforts to eventually
turn a profit.

 

Uber has lost $7.4bn (£5.7bn) since it went public in May 2019. It will
report its latest quarterly results on Thursday.--BBC

 

 

 

Vaping: Companies feel burn from US lawmakers

US lawmakers called for tougher rules for e-cigarette companies at a hearing
on Wednesday as they blamed executives for introducing a new generation to
nicotine.

 

The US is looking to write new industry rules amid rising concern about
vaping among teenagers.

 

Congress recently raised the age to purchase such products to 21. President
Donald Trump also signed a partial ban.

 

Companies have said they have taken their owns steps to curb usage.

 

New Jersey congressman Frank Pallone said such actions were "too little too
late".

 

"The significant progress we made to curb tobacco use has simply vanished,"
he said, adding that he held the manufacturers responsible.

 

"If you wanted to be men of integrity, you would not be selling this
product. You'd be doing something else".

 

Vaping firms at the hearing - including Juul, Reynolds America, NJoy, and
Fontem - said their products are intended to help adult smokers stop smoking
traditional cigarettes.

 

'Appealing to teenagers'

Some critics say the products, often sold in flavours like mint or vanilla,
are appealing to teenagers. That comes despite concerns about the health
risks of nicotine.

 

More than 27% of US teenagers aged 14-18 and about 10% of those aged 11-13
had used e-cigarettes at least once in the past 30 days, according to a
survey by the Centers for Disease Control.

 

About a fifth of older teens said they had used vaping products
"frequently".

 

>From May, companies selling e-cigarettes in the United States will have to
be approved by the Food and Drug Administration.

 

Wednesday's hearing saw lawmakers say they wanted further action. Democrats
also criticised exemptions to the product ban that President Donald Trump
announced in January.

 

Firms said they shared concerns about vaping among teenagers, which they
said threatened to undermine the industry.

 

"I know it puts it all at risk if we don't make progress here," said KC
Crosthwaite, chief executive of Juul Labs, one of the biggest vape producers
in the US.

 

Juul has been a focus of criticism, with some accusing it of marketing to
teenagers.

 

Amid the backlash, it has suspended advertising and stopped sales of most
flavours, including mint, which had accounted for about 70% of its sales.

 

The actions have cut into the firm's business. Marlboro-maker Altria, which
took a 35% stake in the business in 2018, recently wrote down the value of
its investment by about two-thirds.

 

Tobacco group Imperial Brands has also warned investors that the crackdown
on vaping would hurt growth.--BBC

 

 

 

UK tech giant founder arrested over US extradition

The founder of UK software firm Autonomy has submitted himself for arrest as
part of an extradition process brought by the US over charges of conspiracy
and fraud.

 

Mike Lynch sold Autonomy to US computer giant Hewlett Packard (HP) for
$8.4bn in 2011.

 

But he faces allegations that he fraudulently inflated the value of Autonomy
before the sale.

 

Dr Lynch's lawyers said he "vigorously rejects all the allegations".

 

Chris Movillo and Reid Weingarten said Dr Lynch was "determined to continue
to fight these charges".

 

They said Wednesday's move to submit himself for arrest was a "formality"
and he had been released on bail of £10m by Westminster Magistrates' Court.
The full hearing of the case will begin later this year.

 

Autonomy ex-finance boss sentenced to jail

Autonomy boss in 'deliberate fraud'

Dr Lynch has been facing civil charges at the High Court in London, where HP
is suing him for damages over the deal. But separately the US Department of
Justice (DoJ) is pursuing criminal charges against him.

 

"The US Department of Justice should not have commenced extradition
proceedings prior to the judgment of the English High Court," Dr Lynch's
lawyers said in a statement.

 

HP is suing Dr Lynch

They added: "Since HP first raised these allegations more than seven years
ago, Dr Lynch has steadfastly denied them and has worked hard to properly
respond and set the record straight.

 

"Dr Lynch has now answered HP's claims in the appropriate forum, the High
Court in London, where he attended court every day of the 10-month trial.

 

"He has not hidden, nor has he shied away from defending his conduct. Having
patiently and diligently defended the case in England for several years, he
awaits the civil trial judgment."

 

'Artificially inflated'

The UK's Serious Fraud Office investigated the deal in 2013, before dropping
the case two years later because of "insufficient evidence".

 

Autonomy was founded by Mr Lynch in 1996. It developed software that could
extract useful information from "unstructured" sources of data such as
phone-calls, emails or video, and then do things such as suggest answers to
a call-centre operator or monitor TV channels for words or subjects.

 

Before it was bought by HP, it had headquarters in San Francisco and
Cambridge in the UK.

 

In 2010, about 68% of Autonomy's reported revenues came from the US and
elsewhere in the Americas.

 

HP and US prosecutors allege that Mr Lynch and other former Autonomy
executives artificially inflated the software company's revenues and
earnings between 2009 and 2011, causing HP to overpay for the firm.

 

But Mr Lynch has argued that HP used the allegations to cover up its own
mismanagement of Autonomy after the 2011 deal.--BBC

 

 

 

Coronavirus: Cathay Pacific asks staff to take unpaid leave

Hong Kong's flagship airline Cathay Pacific has asked staff to take three
weeks of unpaid leave to help it cope with the impact of the coronavirus.

 

The carrier had already been hit by the effect on passenger demand of
several months of anti-government protests in Hong Kong.

 

It has offered a voluntary special leave scheme to all employees from 1
March to 30 June.

 

The airline said that preserving cash was "key to protecting" its business.

 

On Tuesday, Cathay said it intended to cut services by about 30% over the
next two months, including a cut of about 90% in flights to mainland China.

 

The airline had already been facing difficulties because of anti-government
protests in Hong Kong, an international financial and travel hub and a key
part of its business.

 

Analysts said the airline had been likely to offer the unpaid leave scheme
to staff because of those issues anyway.

 

The new coronavirus causes severe acute respiratory infection and symptoms
usually start with a fever, followed by a dry cough. The number of cases in
China has now exceeded 24,300, with 490 deaths reported.

 

Other developments

European aircraft manufacturer Airbus said it was "observing Chinese
government requirements for staff to work from home" and had closed its
Tianjin assembly line

At least 10 people on board the Diamond Princess cruise ship in the Japanese
port of Yokohama have tested positive for the virus, but with many still to
be tested the number of those infected could rise

Sportswear firm Adidas said it was "experiencing a negative impact" on its
operations in China and that it had closed a "significant number" of its own
stores in the country

Danish brewer Carlsberg said there could be a short-term impact in China on
the firm as a result of the virus and warned it faced a "more volatile
business environment" as the coronavirus outbreak spread

Crude oil price falls to its lowest level in 12 months amid declining demand
in China

In a statement, Cathay said: "In view of the Novel Coronavirus outbreak and
also significant drop in market demand, we just announced massive capacity
cuts yesterday.

 

"Preserving cash is the key to protecting our business. We have already been
taking multiple measures to achieve this.

 

"Today, we are appealing to all employees to participate in the special
leave scheme, which will take effect from 1 March and last until 30 June.
All employees will have the option to take three weeks of unpaid leave in
this period."

 

Cathay chief executive Augustus Tang has sent a video message to employees,
according to the Reuters news agency.

 

In it, he said the airline had also asked its suppliers to cut prices,
stopped hiring new staff and postponed some major projects and stopped all
non-critical spending.

 

The new coronavirus causes severe acute respiratory infection and symptoms
usually start with a fever, followed by a dry cough. The number of cases in
China has now exceeded 24,300, with 490 deaths reported.--BBC

 

 

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
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been compiled from sources believed to be reliable, but no representation or
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
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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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