Major International Business Headlines Brief::: 30 January 2020

Thu Jan 30 09:53:57 CAT 2020

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Major International Business Headlines Brief::: 30 January 2020

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ü  IMF: Ethiopia GDP to grow at 6.2% at 2020 fiscal year

ü  Kenyan GDP expected to grow 6.2% in 2020, central bank says

ü  Cell C default sets shares sliding in South Africa's Blue Label

ü  Egypt signs two Mediterranean exploration deals with Exxon Mobil- ministry

ü  Telecom Egypt shares rise on reports of Vodafone Egypt stake sale

ü  Kenyan central bank cuts key lending rate to 8.25%

ü  Barrick to sell gold worth up to $280 mln as export ban lifted

ü  Coronavirus: Technology giants join China shutdown

ü  Facebook: Privacy scandals take toll on profits

ü  Tumble in UK car output 'a grave concern', says trade body

ü  Jeweller De Grisogono files for bankruptcy amid Dos Santos scandal

ü  Boeing reports its first loss in two decades

ü  Wonga borrowers 'to get just 4.3% of compensation claims'

ü  Huawei: Is it a security threat and what will be its role in UK 5G?

 <mailto:info at bulls.co.zw> 

IMF: Ethiopia GDP to grow at 6.2% at 2020 fiscal year

NAIROBI (Reuters) - The International Monetary Fund forecast that Ethiopia’s economy will grow at 6.2% in the 2020 fiscal year, it said in a statement on Tuesday, well below the government forecast of 10.8% but in line with World Bank estimates.

“Performance of goods exports remained weak and foreign exchange shortages persist,” the bank staid in a press release. Reserves are expected to improve to around $4 billion by July, when the 2020 fiscal year ends, sufficient to cover two months of prospective imports, the bank said.

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Kenyan GDP expected to grow 6.2% in 2020, central bank says

NAIROBI (Reuters) - Kenya’s economy is forecast to grow 6.2% this year, up from 5.7% last year, central bank governor Patrick Njoroge said on Tuesday, as regional trade shields Kenya from the effects of a global downturn.

The bank expects recovering agriculture, medium and small businesses and robust private-sector credit growth to support that growth.

“We will end up with 6.2%. Frankly, this is a very benign baseline,” Njoroge told a news conference.

Kenya is East Africa’s richest economy and is enjoying an extended rainy season after several years of drought. The government also lifted caps on bank lending rates last year, which had inhibited loans to private business.

Njoroge said Kenya’s trade with other African countries had a stabilising effect. Exports to the regional East African Community accounted for 23% of total exports and the rest of the continent made up about 37% in 2019, he said.

“If there are problems in the rest of the world, at least around us there is some stability. It offers a sense of security,” Njoroge said.

On Monday, the central bank cut the benchmark lending rate for the second meeting in a row, to 8.25% from 8.50%. It said the economy was operating below potential and it saw room for a more accommodative monetary policy.

The finance ministry said earlier this month economic growth probably slowed to 5.6% last year, from 6.3% a year earlier, compared with government’s initial estimate of about 6%.

The ministry forecasts growth of 6.1% this year, rising to 7% per annum in the medium term.

But concern has been growing over increasing public debt. Hundreds of mismanaged infrastructure projects have stalled and it will cost around $10 billion to revive them, the International Monetary Fund said this month.

Kenya scrapped a cap on commercial lending rates in November. The cap, imposed in 2016, was blamed for strangling private-sector credit growth, especially to small businesses, and reducing the effectiveness of monetary policy.

Njoroge said the central bank and commercial banks were working to make sure that customers got lending rates that reflected their risk profiles.

Previously, information from credit reference bureaus and other sources did little to reduce interest rates.

“It will not be one size fits all. It cannot be. Because we all have different risk profiles,” Njoroge said. “You have to do serious banking, not lazy banking. We were doing lazy banking before, that is what it was.”

Cell C default sets shares sliding in South Africa's Blue Label

JOHANNESBURG (Reuters) - South Africa’s Blue Label Telecoms said on Tuesday that Cell C, the country’s third biggest mobile carrier in which it is the majority shareholder, had defaulted on a series of debt payments, triggering a fall of more than 12% in its shares.

Blue Label said in a statement that Cell C had defaulted on an interest payment for a $184 million note due in December as well as interest and capital repayments on bilateral loans from banks that were due in January.

Cell C was working to improve its liquidity and debt profile as well as its long-term competitiveness and the mobile operator was “committed to resolving the situation by agreeing to restructuring terms with its lenders”, Blue Label added.

Blue Label has been trying to dig Cell C out from under hefty debts since it purchased its stake in the carrier for 5.5 billion rand ($384 million) in October 2016.

It has had to justify the purchase to shareholders as Cell C’s prospects have failed to improve.

Cell C’s debts were just shy of 9 billion rand in the year to end-May 2019, its most recent financial statements show.

The carrier said in a statement the suspension of payments were part of its initiative to restructure its balance sheet, and that an expanded roaming agreement signed with Africa’s biggest mobile operator MTN would help.

“We will continue to engage with all stakeholders throughout this process and we believe we have made good progress,” Cell C CEO Douglas Craigie Stevenson said in a statement.

($1 = 14.3325 rand)

Egypt signs two Mediterranean exploration deals with Exxon Mobil- ministry

CAIRO (Reuters) - Egypt has signed two deals with Exxon Mobil for oil and gas exploration in the Mediterranean, the petroleum ministry said on Tuesday.

The exploration deals include a minimum investment of $332 million, the ministry said in a statement.

Telecom Egypt shares rise on reports of Vodafone Egypt stake sale

CAIRO (Reuters) - Telecom Egypt shares rose more than 4% in early trading on Tuesday following reports Vodafone Group could sell its stake in its Egyptian unit, Vodafone Egypt.

Telecom Egypt said on Sunday it had no intention of selling its 45% stake in Vodafone Egypt. Vodafone Group holds the remaining 55% stake in the company.

Kenyan central bank cuts key lending rate to 8.25%

NAIROBI (Reuters) - Kenya’s central bank monetary policy committee cut its benchmark lending rate to 8.25% on Monday from 8.50%, saying the economy was operating below potential and there was room for a more accommodative monetary policy.

The bank cut the benchmark rate in November by 50 basis points, the first cut after holding it for seven straight meetings.

“The Committee ... noted that there was room for further accommodative monetary policy to support economic activity. The MPC therefore decided to lower the CBR to 8.25 percent,” the bank said in a statement.

In a Reuters poll of eight economic analysts last week, all expected the rate to be held steady.

Governor Patrick Njoroge told Reuters in November that the scrapping of an interest rate cap, in place since 2016, had removed one of the concerns the central bank had about cutting the lending rate.

Barrick to sell gold worth up to $280 mln as export ban lifted

LONDON (Reuters) - Barrick Gold will start to ship gold worth up to $280 million from Tanzania, chief executive Mark Bristow said on Monday, after the government lifted an export ban following the resolution of a three-year tax dispute.

The world’s second-largest gold miner signed a deal on Friday with Tanzania’s government, ending a row that dated back to when Acacia Mining ran the Tanzanian operations.

Barrick fully acquired Acacia last year.

“The shipments will start immediately and, as we speak, we are mobilising the concentrates,” Mark Bristow told Reuters in a telephone interview.

“It’s (worth) around $260-$280 million depending on the price of metal prices at the time of sale.”

Spot gold, which rose 18% last year, is hovering at about $1,600 per ounce.

Bristow said $100 million from the proceeds of the sale of concentrates will go towards paying down a $300 million settlement agreed with the government.

As part of the deal, Tanzania will own 16% of Twiga Minerals, a new joint venture set up to manage the Bulyanhulu, North Mara and Buzwagi mines.

In the long-standing dispute, Acacia was accused of tax evasion, leading the government to impose a ban on exporting mineral concentrates and to change mining laws in 2017.

Barrick’s Tanzanian operations account for about 6% of its gold output.

Bristow said shutting Acacia Mining’s office in London and reducing staff numbers in Johannesburg and Dar es Salaam, had already reduced costs, but he saw further potential for efficiency. He declined to give further details.

Barrick also plans in the fourth quarter of this year to re-start the Bulyanhulu mine in Tanzania, which ceased operations because of the export ban.

Asked about a possible sale of Barrick’s Zambian mine, Bristow said Barrick’s Lumwana mine was “entertaining interested parties”. The miner reversed an impairment on the value of the copper mine in the previous quarter.

Bristow declined to give any update on three people who worked for Acacia Mining and have been in jail in Tanzania since 2018.

Coronavirus: Technology giants join China shutdown

Google is temporarily closing all of its offices in China, Hong Kong, and Taiwan as a result of the coronavirus.

Other tech giants, including Amazon and Microsoft, have also taken action to protect staff from infection.

This week global corporations have been shutting operations in China and advising overseas staff not to visit the country.

Many employees are being asked to work from home or extend their Lunar New Year holiday.

Google said it is stopping staff travelling to China and Hong Kong, while employees currently in the country have been advised to leave as soon as possible and then work from home for a minimum of two weeks.

Google has four offices in mainland China, although the company has not said how many staff it employs there.

While Google's search engine is not available in China, its offices focus on sales and engineering for its advertising business.

Other global technology giants, including Microsoft and Amazon, have announced similar measures as they attempt to prevent the spread of the deadly virus.

"Out of an abundance of caution, we are restricting business travel to and from China until further notice and encouraging our employees to follow the health and safety guidelines provided by international health agencies", an Amazon spokesperson told the BBC.

Earlier this week Facebook became the first major US firm to tell staff to avoid travelling to China.

Meanwhile General Motors has become the latest big car maker to announce that it is extending its Lunar New Year holiday manufacturing plant closures. The US company said its Chinese factories will remain shut until 9 February.

On Wednesday Toyota also announced that its production plants in China will stay closed until 9 February. The Japanese car maker said the closures were in line with transport lockdowns imposed by Chinese authorities and as the company assesses its supply chain.

Several other international car companies operating in Wuhan, which is at the epicentre of the outbreak, have previously said they were taking action to bring staff back to their home countries.

French car making group PSA, which owns the brands Peugeot and Citroen, and Japan's Honda and Nissan have announced plans to evacuate staff and their families from China.

Wuhan is China's seventh biggest city and a major motor manufacturing hub.--BBC

Facebook: Privacy scandals take toll on profits

Facebook has recorded its first annual fall in profits in at least five years, as its efforts to respond to privacy and content concerns took a toll on the firm's bottom line.

The tech giant, which owns Instagram and WhatsApp, said profits sank 16% in 2019 to $18.4bn (£14.1bn).

The fall came despite the continued health of its advertising business, which saw revenue rise 27% last year.

Shares in the firm dropped more than 6% in after-hours trade.

Facebook startled investors in 2018, when it warned that its efforts to beef up privacy protections and content moderation on its platform would hit profit.

The tech giant has faced criticism over its handling of fake news during 2016 elections, as well as the improper sharing of user data with Cambridge Analytica. More recently, its decision not to police political adverts on its site for false content has come under fire.

Facebook adds more ad tracking controls in the UK

Facebook faces fresh anti-trust investigation

In July, US regulators announced a record $5bn fine against Facebook to settle privacy concerns.

On Wednesday, the firm also said it had agreed to pay $550m to settle an Illinois lawsuit over its use of photos for its facial recognition technology.

Facebook chief Mark Zuckerberg said that he expects the firm will continue to find itself in the spotlight, as it defends its support of targeted advertising and encryption.

"My goal for this next decade isn't to be liked but to be understood," he said. "In order to be trusted, people need to know what you stand for."

Shares plummeted following its 2018 forecast, but they had rebounded last year, as user growth and advertising revenues remained strong, despite ongoing investigations.

On Wednesday, Facebook said an average of 2.26 billion people were active on its family of platforms each day in December, up 11% from a year earlier. Facebook alone counted an average of 1.7 billion active users each day during the month, up 9% - ahead of expectations.

"Facebook can't avoid change though," said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown. "The Cambridge Analytica scandal intensified regulatory scrutiny, and tightening data security as well as fighting fake news is an ongoing - and expensive - challenge."

Facebook reported more than $70bn in revenue for 2019, up from $55.8bn the previous year. However, expenses rose faster, increasing 51% to $46.7bn, driven by legal costs.

Facebook warned that further costs were yet to come, as growth slows due in part to new privacy regulations.

"While we have experienced some modest impact from these headwinds to date, the majority of the impact lies ahead of us," chief financial officer Dave Wehner said.--BBC

Tumble in UK car output 'a grave concern', says trade body

UK car production sank to its lowest in almost a decade in 2019, with output forecast to continue falling this year.

Factories produced 1.3 million units last year, down 14.2% on 2018 and the third consecutive year of decline, according to figures from the Society of Motor Manufacturing and Traders.

Structural changes in the industry, Brexit uncertainty, and weak exports were all factors, the trade body said.

SMMT boss Mike Hawes called the worst figures since 2010 "a grave concern".

Production of cars to be sold in the UK fell 12.3% last year, while vehicles for export fell 14.7%. With 81% of cars built for export - the vast majority sent to the European Union - Mr Hawes again stressed the importance of a barrier-free EU trade deal after Brexit.

Shipments to EU countries fell by 11.1% last year, but the bloc remains the industry's most important market

"Given the uncertainty the sector has experienced, it is essential to protect our global competitiveness, and that starts with an ambitious free trade agreement with Europe - one that guarantees all automotive products can be bought and sold without tariffs or additional burdens," he said.

Price rises

Britain leaves the EU at 23:00 GMT on Friday, although trade rules will remain unchanged until the end of the transition period in December.

Mr Hawes does not anticipate any disruption to exports or imports, as the threat of a cliff-edge Brexit that spooked the industry last year has receded.

But given the integrated nature of the European motor industry, with parts, components and cars going back and forth across borders several times during the production process, a trade deal needed to be struck as soon as possible, he said.

"This will boost manufacturing, avoid costly price rises and maintain choice for UK consumers. Negotiations will be challenging but all sides stand to gain," Mr Hawes said. He estimates that the imposition of tariffs on cars and components will add £1,500 to the price of an average car, currently about £22,700.

A satisfactory trade deal will unlock a pipeline of investment into the UK, by both manufactures and the supply chain, he said. Carlos Tavares, chief executive of France's PSA Group, which owns Vauxhall, has stressed the importance of a trade deal to secure investment at the UK company's Ellesmere Port factory, in Cheshire.

More electric car sales

Manufacturing output this year is forecast to fall less sharply, to about 1.27 million units, with companies having already started adjusting to structural changes, such as the slump in diesel cars, new emissions regulations, and investment in electric and hybrid cars.

Mr Hawes said a bright spot in last year's figures was a 34.7% rise in production of electric and hybrid vehicles. But with 192,304 units produced, it was a small part of the overall total. "The challenge to the industry is how quickly it can move," Mr Hawes said. "Environmental pressures are not going away. They are going to increase."

Alongside the production data, the SMMT released new figures highlighting the motor industry's contribution to the UK economy. About 168,000 people - one in 14 - employed in manufacturing works in automotive, with an additional 279,000 jobs supported by the sector.

In the north east and west Midlands, automotive accounts for more than one in six manufacturing jobs.--BBC

Jeweller De Grisogono files for bankruptcy amid Dos Santos scandal

A Swiss luxury jeweller linked to Africa's scandal-hit richest woman Isabel dos Santos has filed for bankruptcy.

De Grisogono is mainly owned by Angola's state diamond firm and Mrs Dos Santos' husband Sindika Dokolo.

Recently leaked documents show a loan to buy the jeweller is costing the Angolan government millions of dollars.

Ms Dos Santos denies allegations she enriched herself through corrupt deals when her father was Angola's president.

Africa's richest woman 'ripped off her country'

The other JLo - the man taking on Africa's richest woman

José Eduardo dos Santos ruled Angola for 38 years until 2017. He controversially appointed his eldest daughter to head the state-owned oil firm Sonangol a year before he stood down.

Prosecutors are now seeking to recover $1bn (£760m) which they claim the 46-year-old billionaire and her associates allegedly owe the state.

They all deny any wrongdoing, saying the accusations are a politically motivated witch hunt.

Cannes Film Festival parties

A deal to buy Geneva-based De Grisogono, which creates diamond jewellery often worn by celebrities on the red carpet, was organised in 2012.

The BBC's Panorama team, as well as other news outlets, published revelations - known as the "Luanda Leaks" - about the deal earlier this month, showing how it benefitted Ms Dos Santos's husband.

The deal was supposed to be 50-50 partnership between him and Sodiam, Angola's state diamond company.

But the documents show that 18 months after the deal, Sodiam had put $79m into the partnership, while Mr Dokolo had only invested $4m. Sodiam also awarded him a €5m success fee for brokering the deal, so he didn't have to use any of his own money.

The documents reveal how Sodiam borrowed all the cash from a private bank in which Ms Dos Santos is the biggest shareholder.

Sodiam has to pay 9% interest and the loan was guaranteed by a presidential decree from her father, so the bank cannot lose out.

By the time Sodiam pays off the loans, it will have lost more than $200m, the firm's chief executive told Panorama.

The Angolan government says the diamonds were sold at a knockdown price and sources told Panorama that almost $1bn might have been lost.

Mr Dokolo's lawyers say he later invested $115m in De Grisogono and his company paid above the market rate for the raw diamonds.

When João Lourenço took over as Angola's president in September 2017 he moved swiftly against the former first family, sacking Ms Dos Santos from Sonangol.

According to International Consortium of Investigative Journalists, it was at this time Sodiam sought to sell its stake in De Grisogono.

But no buyer could be found for the luxury brand, known for hosting parties at the Cannes Film Festival.

If the Swiss authorities accept any bid for bankruptcy by De Grisogono the firm says 65 employees will lose their jobs.

It was founded in the 1990s by Fawaz Gruosi, who made the brand famous with his bold and ornate designs.--BBC

Boeing reports its first loss in two decades

Boeing has reported its first annual loss in more than two decades as the 737 Max crisis continues to hit the firm.

The planemaker was forced to ground the aircraft, which had been its best seller, in March last year after two deadly crashes that killed 346 people.

Now it has said that it expects the bill for the grounding to surpass $18bn (£13.8bn).

That has hurt the firm's finances, pushing it to a $636m loss for 2019.

Sales were worse than expected in the final three months of last year when the planemaker booked $17.9bn in revenues.

That was much lower than $21.7bn that had been expected by analysts.

Boeing: US regulator 'pleased' with 737 progress

Boeing delays 737 Max return date to July

"We recognize we have a lot of work to do," said Boeing's newly-appointed boss David Calhoun.

He replaced Dennis Muilenburg who was fired late last year following his handling of the crisis at the company.

"We are focused on returning the 737 Max to service safely and restoring the long-standing trust that the Boeing brand represents with the flying public," said Mr Calhoun. =

This was not necessarily the best first earnings report for the newly appointed chief executive of Boeing. There were some eye-catching headlines: more than $18bn in costs associated with the Max crisis; it's first loss in more than two decades; plummeting sales.

Boss Dan Calhoun's primary focus is to first get the planes back in the air quickly and safely, making fixes, giving pilots extra training and convincing regulators.

But he also needs to re-establish broader confidence in Boeing planes - and that will be far more difficult. Yes, Boeing has been in communication with its airline customers about when the jets may be airworthy again.

But how do you convince the public that the aircraft responsible for 346 deaths, countless investigations and billions of dollars in fixes is safe to board?

The cost of 737 Max crisis was thought to have reached around $9bn but Wednesday's announcement suggests the final bill could be more than double that.

The return to service of the 737 Max has been repeatedly delayed. And last week, Boeing said it did not expect the fleet to return to the skies before the summer.

Boeing has been working on fixes to try to get the 737 Max planes back up and running.

And in an interview with CNBC, Mr Calhoun said he expected the firm would meet deadlines set by regulators.

Meanwhile, he said that - despite the two fatal crashes - he did not plan to rebrand the 737 Max.

The company had a total backlog in orders worth $464.4bn.

Boeing's share price climbed on Wednesday, soaring by more than 4%.--BBC

Wonga borrowers 'to get just 4.3% of compensation claims'

People who were mis-sold loans by the payday lender Wonga have been told that they will receive just 4.3% of the compensation they are owed.

Administrators have begun informing around 400,000 claimants by letter, some of whom have reacted in dismay.

Before its collapse, Wonga was vilified for its high-cost, short-term loans, seen as targeting the vulnerable.

Commenting on the debt advice forum Debt Camel, one ex-customer called it an "utter disgrace".

"Lives have been ruined by these loans. I myself had to borrow from friends and family to make repayments on time. Claim redress £3,455, [I am] getting £148."

Wonga, which collapsed in 2018, was once the UK's biggest payday lender but its practices attracted intense scrutiny.

In 2014, the Financial Conduct Authority (FCA) found it had lent money to many who would never be able to repay, prompting a crackdown on the sector.

Administrators have since received 380,000 eligible claims against the business worth £460m in total - an average of £1,200 a claim.

But while claimants were warned they would get "significantly less" than full compensation, few expected to get so little.

Sara Williams, who runs Debt Camel, said they had been "badly let down" by regulators.

"Wonga ignored the regulator's rules about checking the affordability of loans and they were allowed to get away with this for 10 years.

"Now customers are being let down again because they are not getting the compensation they deserve from the regulator."

Hundreds of ex-customers have vented their anger on the Debt Camel site. One said: "We have all been exploited, and we all know how much we have been exploited by.

"In my case £6,500, of which I'll receive less than £300."

Ms Williams said borrowers were not covered by the Financial Services Compensation Scheme, which is overseen by the FCA,

The scheme covers products such as payment protection insurance (PPI), fully reimbursing anyone who has been mis-sold to, but does not extend to payday loans.

Payments within four weeks

"Borrowers from many payday lenders have been unable to get proper compensation after the lender has had to close," Ms Williams said.

"The FCA needs to rethink this and provide a safety net for people who were mis-sold unaffordable loans."

Wonga's administrators said claims should be paid within the next four weeks, later than the 20 January date initially promised.

They also said loans being refunded would be removed from people's credit records within the next six weeks - likely to be a relief to many.

Some people still owe money to Wonga but it is unclear what will happen to their balances.

Ms Williams said administrators were no longer taking payments and had said before that they were not likely to sell the loans to a debt collector.--BBC

Huawei: Is it a security threat and what will be its role in UK 5G?

Huawei is one of the world's biggest mobile phone makers. It's also at the centre of a row over cyber-security and the next-generation 5G phone networks being built.

The UK government has decided to allow the Chinese tech giant to be part of its 5G network - but with restrictions.

What is Huawei?

Huawei was founded in 1987 in Shenzhen, southern China, by Ren Zhengfei, a former army officer. It started making communications equipment for mobile phone networks and is now a global leader, employing 180,000 workers.

Huawei is the world's second-largest smartphone supplier after Samsung, with 18% of the market - ahead of Apple and others.

Which countries are concerned about Huawei?

At the heart of the debate is a simple question: can the West trust Huawei or will using its equipment leave communication networks, and our own mobile phones, vulnerable?

The US says Huawei could be used by China for spying, via its 5G equipment. It points to Mr Ren's military background and Huawei's role in comms networks to argue it represents a security risk.

Mr Ren was member of China's army, the People's Liberation Army, for nine years until 1983. He is also a member of China's Communist party.

But Huawei says this is not relevant: "When Ren Zhengfei was a young man, you needed to be a CPC member to have any position of responsibility."

Washington has banned US firms from doing business with Huawei, and wants its allies to ban it from their 5G networks. Australia and New Zealand have joined the US. Germany has put off making a decision - at least until the next EU summit in March.

For the UK, using Huawei equipment may hit vital UK-US trade talks and the US has warned such a decision could risk future security co-operation. But if the UK had banned Huawei from 5G, it could have faced Chinese retaliation.

5G: What are the issues?

Many countries are preparing to move from 4G to more advanced 5G mobile networks. Download speeds 10 times faster than today will radically change how we work, communicate and stream videos.

In principle, controlling the tech at the heart of these networks could give Huawei the capacity to spy or disrupt communications during any future dispute. This is important, as more things - from self-driving cars to fridges, baby monitors and fire alarms become connected to the internet.

The concern is that state-sponsored hackers could use these devices, which often have weaker security features, as back doors into strategically vital networks. For instance, this could make it possible to shut down a rivals' power stations.

What role will Huawei have in the UK?

The Chinese company will be banned from supplying equipment to "sensitive parts" of the network, known as the core.

In addition, it will only be allowed to account for 35% of the kit in a network's "periphery", and it will be excluded from areas near military bases and nuclear sites.

The core is essentially the phone network's heart and brain. It is where voice and other data is routed to ensure it gets to its where it needs.

This involves making sure users can only access the services they have paid for, sending a call to the right radio tower, delivering SMS messages, or keeping track of usage to calculate bills.

The core is distinct from the Radio Access Network (RAN) or the periphery - made up of the base stations and masts used to link our mobile devices to the core. Some say this is what Huawei should be involved in.

But others worry this boundary between the core and periphery will disappear in future, as more operations are carried out closer to users. They say it will no longer be possible to keep Huawei out of a network's most sensitive areas.

Is Huawei spying on us?

The US argues China's 2017 National Intelligence Law, which says organisations must "support, co-operate with and collaborate in national intelligence work", means Beijing could force Huawei to do its bidding.

Huawei says it's never been asked to spy and "would categorically refuse to comply". It adds: "We would never compromise or harm any country, organization, or individual, especially when it comes to cyber-security and user privacy protection."

Is my phone spying on me?

Your phone, whoever makes it, is tracking you in various ways - but it's you that have to agree. And you're in charge of what it learns.

For instance, depending on what permissions you've granted your apps, it may track how often you visit certain websites or whether you use it to buy stuff.

If you use a Huawei phone, it's very unlikely the firm's handing your data to the Chinese government, though it is possible. In the same way, technically, data from a Google Pixel phone could be handed over to the US government.

In March last year, Google halted Huawei's licence for Android - the operating system for most of the world's phones, aside from Apple's iPhone.

If your Huawei phone was issued before the ban it will receive Android updates, but newer models won't. However Huawei is trying to work around this.

Are there alternatives to Huawei for 5G?

US buyers will almost certainly favour kit from US companies, such as Cisco, Juniper Networks, or Qualcomm. In Europe, 5G manufacturers include Sweden's Ericsson and Finland's Nokia.

In the UK, going Huawei-free would have been a challenge. The country has been using its equipment since 2005. Even if the UK had chosen to ditch Huawei, it could not just rip up the existing 4G infrastructure. It would have cost a fortune and risked delaying 5G for years.

To monitor the company, the UK has set up the Huawei Cyber Security Evaluation Centre, which comes under the National Cyber Security Centre

It says it has never found evidence of malicious Chinese state activity, but that it has identified some serious defects in Huawei's software engineering and cyber-security competence.

The UK says risks will need to be managed, and it will have several 5G suppliers to avoid depending on one firm.

How do you pronounce Huawei?

As Huawei is from Guangdong province where Cantonese is the main dialect, the firm says its name should be pronounced "wah-way". However, some Mandarin speakers argue that the name is pronounced "hwah-way".--BBC

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

Companies under Cautionary

Bindura Nickel Corporation

Padenga Holdings

Delta Corporation

Meikles Limited

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Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AFQjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:            <http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:      <http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimbabwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA> www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

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