Major International Business Headlines Brief::: 20 February 2020

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Major International Business Headlines Brief::: 20 February 2020

 


 

 


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ü  Egypt posts GDP growth of 5.6% in 6 months to Dec

ü  IMF cuts Nigeria's growth forecast on lower oil price outlook

ü  Rising metals prices spur S.African miner Sibanye to second-half rebound

ü  Absa Bank says Kenya mobile banking app used by almost 5 mln customers

ü  South Africa consumer inflation rises to 4.5% y/y in January

ü  Adverse weather to hit Ghana cocoa output more than expected - traders

ü  Zambian central bank keeps key rate flat, cites low growth and deficit risks

ü  South Africa's Bidcorp says coronavirus will impact second half

ü  737 Max: Debris found in new planes' fuel tanks

ü  Laura Ashley agrees loan deal in fight for survival

ü  Fuel prices push UK inflation to six-month high

ü  Airbus Defence and Space to cut more than 2,300 jobs

ü  Axminster Carpets collapses into administration

ü  The Wet'suwet'en conflict disrupting Canada's rail system

ü  Facebook expresses 'deep concern' after Singapore orders page block

ü  Ransomware-hit US gas pipeline shut for two days

 

 

 

 

 

 

 

 


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Egypt posts GDP growth of 5.6% in 6 months to Dec

CAIRO (Reuters) - Egypt’s economy grew by 5.6% in the six months to December, a government statement said on Wednesday.

 

Egypt’s economy has been boosted in the last three years by an upswing in tourism, strong remittances from Egyptian workers abroad and recently discovered natural gas fields coming on stream.

 

Growth has mainly been driven by the state sector.

 

The economy is expected to grow 5.8% in the fiscal year ending on June 30, and 5.9% in 2020/21, a Reuters poll said in January.

 


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IMF cuts Nigeria's growth forecast on lower oil price outlook

ABUJA (Reuters) - The International Monetary Fund (IMF) has cut its growth forecast for Nigeria this year to 2% from 2.5%, reflecting fears the coronavirus outbreak in China will hit demand for oil.

 

Nigeria has been grappling with low growth since exiting a recession four years ago. President Muhammadu Buhari, who began a second four-year term in May, has vowed to revive the economy, but investors have been waiting for policies.

 

Nigeria’s growth rose to an annual rate of 2.28% in the third quarter of 2019 after production of its main export, crude oil, rose to a more than three-year high.

 

On Tuesday, however, oil prices fell below $57 a barrel, pressured by concerns the coronavirus outbreak could hit demand in China and by a lack of further action by OPEC and its allies to support the market. [O/R]

 

The IMF said growth was still recovering, but inflation was rising which, along with external shocks, would weaken Nigeria’s foreign exchange reserves due to its deteriorating terms of trade and capital outflows.

 

Nigeria’s statistics office said on Tuesday inflation rose to 12.13% in January, its highest in nearly two years and the fifth straight month of increases.

 

“Under current policies, the outlook is challenging,” the IMF said in a statement, following a consultation with the government and central bank officials, as well as banking and private sector representatives.

 

“Structural reforms ... remain essential to boosting inclusive growth.”

 

 

Rising metals prices spur S.African miner Sibanye to second-half rebound

JOHANNESBURG (Reuters) - South African mining company Sibanye-Stillwater reported a near 80% surge in full year earnings on Wednesday following a rebound in the second half on the back of rising precious metals prices and the inclusion of its Marikana operations.

 

Strike action had disrupted operations in the first half of 2019 and the diversified miner reported a headline loss for the full year. However, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 79% to 14.956 billion rand ($1 billion).

 

Group revenue rose 44% year-on-year in 2019 to $5.043 billion driven by rising metals prices and an improved operating performance, it said.

 

Sibanye acquired Lonmin in 2019 in a 226 million pound ($286 million) takeover of its London-listed rival to become the world’s second-largest platinum producer and renamed Lonmin operations Marikana.

 

Sibanye mines gold, platinum, palladium and rhodium mostly.

 

Palladium and rhodium prices, widely used in vehicle exhausts to reduce harmful emissions, have climbed as tighter environmental regulations force carmakers to buy more of the precious metals used in catalytic converters.

 

“The year in review was a tale of two halves, with the financial performance in H2 2019 in stark contrast to H1 2019, which was significantly impacted by strike action at the SA gold operations and other operational disruptions,” Chief Executive Neal Froneman said in a statement.

 

However, Sibanye reported a headline loss of 40 cents per share for the year ended Dec. 31, 2019, compared with a loss of 1 cent per share in the previous year, weighed down by strike related losses in the first half of the year at its gold operations and a non-recurring costs relating to its convertible bonds.

 

South African PGM (platinum group metals) production rose 37% in 2019 to 1,608,332 ounces, including the Marikana operations, while U.S. PGM production totalled 593,974 ounces compared with 592,608 ounces in the prior year.

 

The company’s gold operations produced 932,659 ounces for 2019, down from 1.18 million ounces in 2018.

 

Sibanye Gold Limited, which owns the Kloof, Driefontein and Beatrix Operations, delisted to become a wholly owned subsidiary of Sibanye Stillwater effective on Wednesday to create separate legal entities for its gold and PGM portfolios, trading under Sibanye Stillwater Limited.

 

($1 = 14.9507 rand)

 

 

Absa Bank says Kenya mobile banking app used by almost 5 mln customers

NAIROBI (Reuters) - Kenya’s Absa Bank has moved most of its customers onto its mobile banking platform, which it sees as a major driver for future growth, chief executive Jeremy Awori said on Wednesday.

 

When the bank first launched its digital app known as “Timiza” — Kiswahili for “Achieve” — in March 2018, it attracted 300,000 customers. By the end of the year it had 3 million users, with lending standing at 10 billion Kenyan shillings ($98.91 million).

 

“We have seen our app grow in leaps and bounds. We are now roughly under 5 million [Timiza] customers, and we really are looking forward to growing that number in the future,” Awori told a news conference.

 

The bank, formerly known as Barclays Kenya, says it has about 800,000 customers who are yet to sign onto Timiza.

 

Absa Kenya, which is part of South Africa’s Absa Group, posted a pretax profit of 8.18 billion shillings in the first nine months of 2019, compared with 7.72 billion shillings in year-earlier period.

 

Kenyan lenders have in recent years turned to technology as they try to counter competition from mobile phone-based financial services such as from telecoms operator Safaricom’s M-Pesa platform, which had 23.6 million users as of last September.

 

Absa’s mobile banking app’s competitors include those run by KCB Group’s, NCBA Group and Equity Group.

 

Pressure to use mobile banking services increased further when the government imposed a cap on commercial lending rates in 2016 that ate into bank profit margins forcing banks to search for new ways to grow their businesses. The cap was scrapped at the end of last year.

 

Absa Group operates in 12 countries in Africa where it plans further expansion, including to Nigeria where it has a representative office.

 

“Clearly any ambition to be a pan-African bank cannot be realised without a clear strategy for Nigeria,” said Absa Group chief executive officer Daniel Mminele, who added it was too early to say when or what form the entry would take.

 

($1 = 101.1000 Kenyan shillings)

 

 

 

South Africa consumer inflation rises to 4.5% y/y in January

JOHANNESBURG (Reuters) - South Africa’s headline consumer price inflation quickened to 4.5% year on year in January, from 4.0% in December, data from Statistics South Africa showed on Wednesday.

 

On a month-on-month basis, price growth was at 0.3% in January, the same rate as in the previous month.

 

Core inflation, which excludes prices of food, non-alcoholic beverages, petrol and energy, fell to 3.7% year on year in January compared with a rate of 3.8% in December. On a month-on-month basis core inflation increased 0.1%, from 0.2% in the prior month.

 

 

 

 

Adverse weather to hit Ghana cocoa output more than expected - traders

ABIDJAN/LONDON (Reuters) - Adverse weather in West Africa could see cocoa output in Ghana, the world’s second largest producer, fall short of consensus for a second year running, local traders and exporters told Reuters.

 

Cocoa futures on ICE are near their highest in three years, driven in part by overly dry, hot winds, which have also damaged the crop in neighbouring Ivory Coast, the world’s top cocoa producer.

 

Four local traders and exporters, speaking on condition of anonymity, said they see the 2019/20 Ghanaian crop at 790,000-820,000 tonnes, a shortfall that if realised could help drive global prices higher. It is well short of an 875,000 consensus forecast in a Reuters poll in late January.

 

A source at Ghanaian cocoa regulator Cocobod said the weather is a major concern but declined to discuss numbers.

 

“It has not been raining for more than four months and the heat is so strong there are very few flowers, cherelles (young cocoa pods) and pods in the fields,” said an Accra-based exporter.

 

In 2018/19, Ghanaian cocoa output totalled 815,000 tonnes, according to the International Cocoa Organization, far below the international body’s initial projection of 900,000 tonnes issued in February 2019.

 

The ICCO is expected to publish its first projections for 2019/20 crops later this month.

 

Some analysts question the extent to which this season’s Ghanaian crop will miss consensus forecasts.

 

“People have been reducing their numbers but not by 50,000 tonnes. Arrivals so far have been quite good and at this stage, (there’s only) the mid crop and tail-end of the main crop (left),” an analyst at a major chocolate maker said.

 

Cocoa arrivals at Ghanaian ports stood at 596,000 tonnes from October 1 - the start of the season - until January 16, up from 591,000 tonnes the same period of the previous season, official figures show.

 

But local exporters are concerned.

 

The director of a European company based in Accra said production will disappoint as the recent dry spell has reduced the crop. “We (have been) forced to lower our predictions,” he said.

 

Ghana and Ivory Coast produce more than 60% of the world’s cocoa.

 

Both countries’ output has been hit by the weather, but the situation in Ivory Coast is more severe as farmers and middlemen there have been hoarding in anticipation of higher prices next season, a Europe-based trader said.

 

Ivory Coast and Ghana have introduced a $400 a tonne living income differential or premium for their 2020/21 cocoa sales in a bid to guarantee higher prices for farmers and combat pervasive poverty.

 

It is difficult to hoard in Ghana as the market is so tightly controlled by the government, the Europe-based trader said.

 

 

 

 

Zambian central bank keeps key rate flat, cites low growth and deficit risks

LUSAKA (Reuters) - Zambia’s central bank held the benchmark lending rate at 11.5% on Wednesday as Governor Denny Kalyalya expressed concern about slow economic growth and a hefty fiscal deficit.

 

He said Africa’s No. 2 copper producer was expected to see GDP expansion of 3% in 2020 and 3.7% in 2021. Zambia’s economic activity has been hampered by widespread power shortages and growing public debt, stoking fears of a fiscal crisis.

 

Power shortages were caused by drought-hit hydroelectric generation, prompting the government to focus on developing alternative renewable energy sources to plug the gap and increase borrowing to help maintain current infrastructure.

 

Zambia’s finance minister said last week the country’s external debt had increased to $11.2 billion from $10.23 billion at the end of June 2019. The nation also has a high fiscal deficit equal to 8.2% of gross domestic product in 2019.

 

Kalyalya expressed concern about slow progress on austerity measures aimed at bringing down the deficit, which have included capping public sector wages and suspending some build projects.

 

“The out-turn largely reflects higher-than-programmed spending on capital projects ... as well as external debt service payments,” he told a news conference.

 

“Our call is for effective and sustained implementation of fiscal adjustment measures,” he added.

 

 

 

 

South Africa's Bidcorp says coronavirus will impact second half

JOHANNESBURG (Reuters) - Food services firm Bid Corporation Ltd (Bidcorp) said on Wednesday it expected the coronavirus outbreak to impact growth prospects into the second half of 2020, along with “recent political and social upheaval” in Hong Kong, Chile, Australia and the UK.

 

Bidcorp’s greater China operations are battling with negative impacts from social unrest in Hong Kong and Macau as protests impacted consumption and tourism. Out-of-home eating was hard hit and sales in Hong Kong and Macau dipped in the six months to Dec. 31.

 

While operations in mainland China saw continued growth in the first half, chief executive Bernard Berson expects the coronavirus outbreak, which has killed more than 2,000 people there, to impact growth prospects into the second half.

 

“The big issue that none of us really have the answers to is what the impact of coronavirus will be,” Berson told Reuters in a telephone interview. “The more immediate impact is clearly on demand. People aren’t going out to restaurants and hotels and aren’t travelling. There will be some supply chain disruptions but I don’t believe that will be long term impact.”

 

The company reported a 4% increase in half-year headline earnings, as strong performances of its businesses in Europe, New Zealand and the Middle East outweighed weaker operations elsewhere.

 

Headline earnings per share (HEPS) from continuing operations rose to 728.3 cents in the six months to Dec. 31 from 700.2 cents in the year-earlier period. The company’s earnings were impacted by the adoption of accounting standard IFRS 16.

 

 

Net revenue rose 3.2% to 68.2 billion rand ($4.55 billion), while trading profit grew 9.2% to 3.6 billion rand.

 

Revenue from the Europe division rose 4.1% to 23 billion rand, while the business’ trading profit jumped 12.2% to 1.1 billion rand.

 

“Europe continued to perform well, particularly Netherlands, Czech and Slovakia, Italy and Poland,” Bidcorp said.

 

In New Zealand, sales rose and profit were slightly ahead of expectations, even as volumes fell due to the exit of a large catering contract in July, Bidcorp said.

 

“Operating conditions were challenging in a number of geographies,” the company said. “Social unrest in Hong Kong and Chile impacted out-of-home demand, the bush fires in Australia dampened consumer sentiment while the lead-up to the UK general election and Brexit-fatigue dampened British consumer spending.

 

In addition, trading performance was impacted by management underperformance in Bidfresh UK, Spain and Germany.”

 

($1 = 14.9811 rand)

 

 

 

737 Max: Debris found in new planes' fuel tanks

Boeing's crisis-hit 737 Max jetliner faces a new potential safety issue as debris has been found in the fuel tanks of several new planes which were in storage, awaiting delivery to airlines.

 

The head of Boeing's 737 programme has told employees that the discovery was "absolutely unacceptable".

 

A Boeing spokesman said the company did not see the issue further delaying the jet's return to service.

 

It comes as the 737 Max remains grounded after two fatal crashes.

 

The US plane maker said it discovered so-called "Foreign Object Debris" left inside the wing fuel tanks of several undelivered 737 Maxs.

 

A company spokesman told the BBC: "While conducting maintenance we discovered Foreign Object Debris (FOD) in undelivered 737 Max airplanes currently in storage. That finding led to a robust internal investigation and immediate corrective actions in our production system."

 

Foreign Object Debris is a technical term that covers any substance, debris or article that isn't part of a plane which would potentially cause damage.

 

The revelation is the latest in a string of problems affecting what was once Boeing's best-selling plane.

 

The aircraft has been grounded by regulators around the world since March 2019.

 

It was banned from flying after two separate crashes killed 346 people.

 

737 Max timeline

29 October 2018: A 737 Max 8 operated by Lion Air crashes after leaving Indonesia, killing all 189 people on board

31 January 2019: Boeing reports an order of 5,011 Max planes from 79 customers

10 March 2019: A 737 Max 8 operated by Ethiopian Airlines crashes, killing all 157 people on board

14 March 2019: Boeing grounds entire 737 Max aircraft fleet

The US regulator, the Federal Aviation Administration (FAA), told the BBC that it was monitoring the plane maker's response to the new issue: "The FAA is aware that Boeing is conducting a voluntary inspection of undelivered aircraft for Foreign Object Debris (FOD) as part of the company's ongoing efforts to ensure manufacturing quality.

 

"The agency increased its surveillance based on initial inspection reports and will take further action based on the findings," it added.

 

Boeing said it didn't expect the issue to cause any fresh delays to the 737 Max's return to service, which the company said could happen by the middle of this year.--BBC

 

 

 

 

Laura Ashley agrees loan deal in fight for survival

Struggling retailer Laura Ashley has secured a loan to fund its day-to-day operations following speculation about its survival.

 

The fashion and home store had been in talks with US bank Wells Fargo about terms for drawing on a £20m loan facility.

 

Shares in Laura Ashley surged 45% on the news, rebounding from falls earlier in the week.

 

On Monday, the firm said trading was "challenging".

 

Sales fell by nearly 11% in the second half of 2019.

 

 

It said that its majority shareholder, the Malaysian group MUI, had been in talks with Wells Fargo about funds to allow it to continue trading.

 

The company's share price took a hit after the firm said it had seen a decline in the sales of larger, more expensive items and that customer deposit levels have shrunk. That in turn triggered a restriction on how much it could draw from the loan facility it has with Wells Fargo.

 

In an update to the London Stock Exchange, Laura Ashley said that it should be able to use the funds to "meet its immediate funding requirements". The group said, however, that the money was "not a cash injection".

 

Struggle to stay relevant

In December 2018, Laura Ashley earmarked 40 stores for closure, amid tough trading conditions on the UK High Street. Total group sales fell 10.8% to £109.6m in the second half of 2019.

 

Founded in 1953, Laura Ashley was a prominent name on the High Street and one of the world's leading clothing brands in the 1970s and 1980s.

 

But it has struggled to stay relevant, with the share price tumbling 90% over the past five years.

 

Independent retail analyst Teresa Wickham said that the brand was the first to tap into key trends some decades ago, but that it "had lost its way".

 

She added: "There's no clear strategy when it comes to Laura Ashley - it's quite difficult to know whether it's a furniture, homeware or clothing store.

 

"The brand needs to do some work to identify who their key customers are now. People are searching for vintage, genuine products - so there's certainly a market for the to tap into."--BBC

 

 

 

Fuel prices push UK inflation to six-month high

UK inflation in January rose to a six-month high as petrol and house prices rose, official figures show.

 

The Consumer Prices Index (CPI) stood at 1.8% last month, up from 1.3% in December, the Office for National Statistics said.

 

"The rise in inflation is largely the result of higher prices at the pump and airfares falling by less than a year ago," the ONS said.

 

The rise is ahead of economists' CPI forecast of 1.6% in January.

 

CPI remains below the Bank of England's 2% target for inflation. Wednesday's inflation data pushed the value of the pound above $1.30. Versus the euro, the pound had started the day down 0.25% but rose back to trade flat against the single currency.

 

However, some analysts said that the new figures were unlikely to "move the dial" on the central bank's next decision on interest rates in March.

 

Why is inflation rising?

Mike Hardie, head of inflation at the ONS, said: "The rise in inflation is largely the result of higher prices at the pump and airfares falling by less than a year ago. In addition, gas and electricity prices were unchanged this month, but fell this time last year due to the introduction of the energy price cap."

 

Fuel prices were up 4.7% compared with a year earlier, marking the biggest rise since November 2018. Energy regulator Ofgem's cap on energy bills meant that the average household could not be charged more than £1,137 annually for their gas and electricity.

 

The ONS also said that annual house prices rose across all regions of the UK, the first time this has happened in nearly two years.

 

The cost of living fell in January. Before you get too excited though - it normally does, compared with a month before, due to January sales and a slowing demand for goods and services following the Christmas break, which pulls prices down on average.

 

This year, however, electricity and gas bills didn't fall as they did in 2019 when the energy price cap kicked in. And discounts in the January sales for clothing and footwear weren't as deep as they were a year ago. That meant they exerted less downward pressure on the average cost of living than most had expected.

 

In turn, that means there is now less of an expectation that the Bank of England will have to try and support the economy by cutting interest rates any time this year.

 

The most recent wages data released on Tuesday showed that average weekly wages in the UK reached their highest levels since before the financial crisis. Weekly pay reached £512 in the three months to December, which - adjusting for inflation - is the highest since March 2008.

 

Excluding bonuses, earnings grew at an annual rate of 3.2% in the three months to December.

 

Inflation is one key factor the Bank of England's Monetary Policy Committee (MPC) considers when setting the "base rate". That influences what interest rate banks can charge people to borrow money, or what they pay on their savings.

 

If it thinks inflation is likely to be below 2%, it may cut interest rates to lower the cost of borrowing and therefore encourage spending.

 

'Unlikely to move the dial'

Ruth Gregory, senior UK economist at Capital Economics, said that the latest inflation figures were "unlikely to move the dial on the outlook for interest rates".

 

She said: "For the MPC, the fact that inflation is in line with its projections provides another reason not to cut interest rates in the near-term." The rate currently stands at 0.75%. The MPC is next due to meet on 26 March.

 

Robert Alster, head of investment services at Close Brothers Asset Management, said that a similar cautious approach might be taken by new Chancellor of the Exchequer Rishi Sunak in his March Budget.

 

He said: "Rishi Sunak is likely to use the Budget to announce a welcome boost to longer-term investment, but abide by the fiscal rules for short-term spending until the fog has cleared" around Brexit.--BBC

 

 

 

Airbus Defence and Space to cut more than 2,300 jobs

The space and defence business of Airbus is to cut more than 2,300 jobs before the end of 2021.

 

The firm said that 357 of those job losses would be in the UK, out of nearly 4,000 staff.

 

Airbus said a flat space market and postponed defence contracts were behind the cuts.

 

Airbus Defence and Space, which makes everything from fighter planes and drones to satellites, employs 34,000 staff - 13,000 of them in Germany.

 

Around a fifth of Airbus's overall revenues come from its defence business.

 

Out of the planned cuts, 829 jobs would go in Germany, 630 in Spain, 404 in France and 141 in other countries, Airbus said in a statement.

 

The head of the defence business, Dirk Hoke, said on Saturday that talks were about to start with labour representatives after setbacks with its A400M military transporter.

 

Recurring technical problems with the A400M led the German air force to refuse delivery of two of the aircraft last autumn.

 

The group has also taken a €1.2bn (£1bn) charge on the worsening sales outlook, with a German ban on defence exports to Saudi Arabia causing Airbus Defence and Space to lose a promising potential customer, Mr Hoke said.--BBC

 

 

 

Axminster Carpets collapses into administration

Axminster Carpets has collapsed into administration after weeks of trying to secure a rescue deal.

 

The 265-year-old firm, a supplier of carpets to the royal family, appointed Duff & Phelps as administrators on Wednesday.

 

It is the second time the company has gone into administration in seven years.

 

In 2013, Axminster Carpets was bought by a consortium led by private investor Stephen Boyd.

 

About 80 employees at its Axminster factory in Devon have been made redundant, but a handful of staff have been kept on to complete existing orders, the administrators said.

 

When appointed on Wednesday, Duff & Phelps sold the Axminster Carpets underlay division, Axfelt, to Ulster Carpets.

 

It also anticipates selling the Axminster Carpet Shop to Wilton Flooring.

 

In 2018, the firm made a loss before tax of nearly £1m, and a loss of almost £3m in 2017, according to documents lodged with Companies House.

 

Axminster Carpets: Carpet maker seeks rescue deal

'Help us or you'll kill the High Street'

The origins of the luxury carpet maker can be traced back to Thomas Whitty, who began making carpets and rugs in the market town of Axminster in 1755, using what became known as the Axminster method of weaving.

 

The family firm went out of business in the 1830s, but the tradition was revived in the town in 1937, when Harry Dutfield, the son of a Glasgow carpet designer, founded the current company.

 

The first carpets were bought by the likes of King George III and Queen Charlotte, who visited the factory. Today, Axminster's luxury carpets can be found at Clarence House, the Brighton Pavilion and Twickenham Stadium.

 

"Despite a number of expressions of interest no acceptable offer for the core carpet business has been received, leaving no option but to appoint administrators while the remaining options are explored," said Benjamin Wiles, a joint administrator at Duff & Phelps.

 

"We are continuing to explore all potential options for all or part of the remaining business and assets including the historic brand name itself."--BBC

 

 

 

The Wet'suwet'en conflict disrupting Canada's rail system

Rail lines across Canada have been paralysed for almost two weeks after being blockaded by indigenous protesters and their supporters.

 

The blockades were put in place in solidarity with Wet'suwet'en First Nation hereditary chiefs who oppose a natural gas pipeline in their traditional territory in the province of British Columbia (BC).

 

The conflict began after police enforced a court injunction to clear Wet'suwet'en camps blocking a road leading to a work site for the pipeline.

 

The economic impact of the rail blockades is beginning to be felt across industries and there are concerns about shortages of goods.

 

Canadian Prime Minister Justin Trudeau is under growing pressure to solve the conflict as trains remain idle.

 

So what's at the core of the dispute?

 

What is the background?

The Coastal GasLink pipeline is a 670km (416 miles) project that would ship natural gas from north-eastern parts of BC to the coast.

 

The C$6.6bn ($4.9bn, £3.8bn) project, in a remote part of the province a full day's drive from Vancouver, has been in the works since 2012.

 

While the conflict is in part over opposition to the pipeline project, it is also about broader complex issues like indigenous governance, indigenous rights, and reconciliation.

 

REUTERS

 

Blockades have halted rail services nationwide

Coastal GasLink has reached deals with 20 elected indigenous councils along the route, including some Wet'suwet'en councils.

 

Training, employment, and community investment forms part of the agreements.

 

Who controls Canada's indigenous lands?

But Wet'suwet'en hereditary chiefs oppose it and claim they hold authority over a bigger expanse of traditional lands, not just reserve land, over which the elected councils have no jurisdiction.

 

It's not clear exactly how much support - or lack of support - there is within the broader Wet'suwet'en community for the pipeline, though some have told the media the community is split.

 

For years, protesters have erected camps along the proposed pipeline route to prevent access to construction sites.

 

In early February, Royal Canadian Mounted Police (RCMP) enforced a court injunction and cleared the camps, arresting people in the process.

 

Meanwhile, other blockades and protests have sprung up across the country in solidarity with Wet'suwet'en hereditary chiefs, disrupting rail lines, ports and highways.

 

What has been the response?

The prime minister and indigenous leaders say peaceful, respectful dialogue is the best path forward.

 

REUTERS

 

Prime Minister Justin Trudeau says "there is no relationship more important in Canada than the one with indigenous peoples" 

Opposition Conservative leader Andrew Scheer has accused Mr Trudeau of having "no plan whatsoever" to resolve the conflict.

 

Assembly of First Nations National Chief Perry Bellegarde has met the parties involved and other indigenous leaderships across Canada and has said "we want to de-escalate and we want dialogue".

 

REUTERS

 

Assembly of First Nations National Chief Perry Bellegarde has called for dialogue

Minister of Crown-Indigenous Relations Carolyn Bennett has sent a letter to Wet'suwet'en hereditary leadership saying she is open and available "at the soonest opportunity" for a meeting and is awaiting a response.

 

Mr Bellegarde says one key request by Wet'suwet'en hereditary leadership is for the RCMP to leave their traditional territories.

 

What is the economic impact?

Last week, Canada's CN Rail said it was forced to shut down its eastern network, which will effectively stop all cross-country freight trains.

 

REUTERS

 

Indigenous Services Minister Marc Miller (second left) has met with Mohawk Nation representatives

CN transports more than C$250bn ($188bn; £145bn) worth of goods annually across Canada.

 

The company says it has sent out 450 notices of temporary layoffs among its eastern operational staff.

 

CN has obtained a court injunction to end a blockade in the province of Ontario, but police have so far refrained from using force to uphold it.

 

Over 94,000 passengers have already been forced to find alternative means of travel since the passenger trains stopped running, though some passenger rail service is returning this week.

 

Industry groups say the impact is already being felt throughout the supply chain.

 

What about indigenous rights and reconciliation?

Mr Trudeau and his Liberal party came to power promising to transform the country's relationship with Indigenous people.

 

But his government's support for some major energy projects have become flashpoints amid those reconciliation efforts.

 

While a number of First Nations communities have chosen to participate in the oil and gas sector and have even backed some contested projects, others have helped drive opposition to controversial energy infrastructure projects.

 

That includes the Coastal GasLink project.

 

Indigenous leaders say this current conflict is a critical moment for the prime minister to show his government is genuine and sincere about moving ahead with reconciliation.

 

REUTERS

 

Passenger rail trains have been sitting idle since early February

In Canada, indigenous people have rights that include the right to land, to self-determination and self-government, and to practise their culture and customs.

 

Canada also has a duty to consult with indigenous peoples before they begin any projects on their land, a responsibility sometimes relegated to companies.

 

Indigenous rights expert Dayna Scott says the rules around consultation are not entirely settled.

 

"It's a very complex area of law that's changing all the time," Ms Scott told the BBC.

 

"It's unsettled what we should do in a situation like this where [those seeking consent] disagree with the hereditary leaders and so indigenous leaders there will say they haven't obtained consent from the appropriate authorities."

 

Another issue raised by this conflict is over land.

 

"It's a question of whose land it is and who has a decision-making authority over it, and does a Crown really have uncontested, exclusive title to all the land within its borders," says Ms Scott.

 

Adding to the complexity is the United Nations Declaration on the Rights of Indigenous Peoples, which states that Indigenous peoples should have "free, prior and informed consent" on a project that may affect them or their territories, says Ms Scott.

 

That declaration has been endorsed - but not adopted by Canada - while BC is the first jurisdiction in the country to pass legislation to ensure laws are consistent with the declaration.

 

There are over 1.6m indigenous people in Canada, which includes First Nations, Inuit, and Metis, and they make up about 5% of the national population.--BBC

 

 

 

Facebook expresses 'deep concern' after Singapore orders page block

Facebook has expressed concern after it was ordered by Singapore to block access to a news site's page.

 

Singapore said the fringe site States Times Review had broken a newly introduced "fake news" law and repeatedly conveyed "falsehoods".

 

Facebook said it was "legally compelled" to comply with the order to block access from Singapore, but said the order was "deeply concern[ing]".

 

It added that the directive could "stifle freedom of expression".

 

The law - known as the Protection from Online Falsehoods and Manipulation bill (POFMA) - came into effect in October.

 

The Singapore government has said it needs strict laws given the potential for fake news to incite racial and religious disharmony, and that it needs the power to act swiftly to halt the viral spread of falsehoods.

 

A Facebook company spokesman said in a statement to the BBC: "We believe orders like this are disproportionate and contradict the government's claim that POFMA would not be used as a censorship tool."

 

"We've repeatedly highlighted this law's potential for overreach and we're deeply concerned about the precedent this sets for the stifling of freedom of expression in Singapore."

 

What did the page post?

Authorities said the States Times Review (STR) had in January put up a Facebook post which "falsely claimed that Singapore had run out of face masks". The article was written in relation to the current coronavirus situation, which has seen many in Singapore scrambling to buy face masks.

 

Singapore, which has reported dozens of virus cases, has always said it has enough supplies and has made sufficient preparations to handle the outbreak.

 

It ordered STR to issue a correction direction - a notice stating that the information put up was false. However, these correction directions were ignored.

 

The Ministry of Communications and Information on 15 February ordered STR to carry a notice saying that it was a Declared Online Location. This meant anyone who visited the page would be "warned that [it] has a history communicating falsehoods".

 

STR did not carry out the notice. Authorities said that it instead "changed the vanity URL of the page", leading the ministry to instead issue a further directive to Facebook to block access to site for Singapore-based users.

 

Minister for Communications and Information S Iswaran said there was a particular need to "act swiftly" against falsehoods in light of the virus outbreak.

 

"If we don't, these falsehoods can cause anxiety, fear and even panic," he had said.

 

The States Times Review page has received at least three correction directions since November last year.

 

Facebook has previously added a correction notice to an STR post, after being ordered to do so. The notice said Facebook was "legally required to tell you that the Singapore government says this post has false information".

 

The editor of the site, Australian citizen Alex Tan, had said last year that he would "not comply with any order from a foreign government".

 

What would have happened if Facebook had not complied?

POFMA allows the government to order online platforms to remove and correct what it deems to be false statements that are "against the public interest".

 

Concern over Singapore's anti-fake news law

Singapore passes controversial fake news law

Under POFMA, Facebook would have been found guilty of an offence if it had not complied with the government's orders.

 

It would be liable on conviction to a fine not exceeding S$20,000 ($14,378; £11,061) a day, up to a total of S$500,000.

 

Facebook's Asia Pacific headquarters are based in Singapore. It has also invested more than S$1bn to build a data centre in Singapore, which is due to open in 2022.

 

What has been said about the fake news law?

Singapore has always exercised tight control of its media. It ranks 151 out of 180 countries in this year's World Press Freedom Index.

 

Critics have said the law threatens freedom of expression. Amnesty International said it would "give authorities unchecked powers to clamp down on online views of which it disapproves".

 

But Singapore's law minister said free speech "should not be affected by this bill", which was aimed only at tackling "falsehoods, bots, trolls and fake accounts".

 

It has argued that the law safeguards against abuse of power by allowing judicial reviews of government orders.--BBC

 

 

 

Ransomware-hit US gas pipeline shut for two days

A ransomware attack on a US natural gas facility meant a pipeline had to be shut down for two days, the US Department of Homeland Security (DHS) has said.

 

However, it did not name the facility or say when the attack happened.

 

A malicious link sent to staff at the facility eventually caused the shutdown "of the entire pipeline asset".

 

It was so severe in part because the organisation was not prepared for such an attack, the DHS statement said.

 

The incident was detailed in a security alert., which revealed it to be a "spear-phishing" attack, in which individuals are sent fraudulent but believable scam messages.

 

That let the attacker into the company's IT network.

 

How did that shut down a pipeline?

Often, the "operational network" which runs computers in the factory is separated from the office IT - but not in this case, meaning the ransomware infection was allowed to spread.

 

Ransomware typically encrypts files on a victim's computer and demands payment before offering to unlock them again - although there is no guarantee that the cyber-criminals who develop such software will be true to their word.

 

A spate of ransomware attacks has troubled various US organisations recently - from local authorities to hospitals to a maritime base.

 

In the case of the natural gas facility, only one office was targeted, but others in different geographic locations were forced to close down, too.

 

The DHS said the affected organisation had not properly prepared for a cyber-attack of this kind - with its emergency plans being focused on all sorts of physical attacks instead.

 

"Consequently, emergency response exercises also failed to provide employees with decision-making experience in dealing with cyber-attacks," the department added.

 

All organisations, regardless of what sector they are in, should prepare for the possibility of a ransomware attack, said Carl Wearn, head of e-crime at cloud email firm Mimecast.

 

Businesses could do this "by implementing offline back-ups with a fall-back email and archiving facility, as a minimum" he said.--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 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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