Major International Business Headlines Brief::: 23 June 2020

Tue Jun 23 05:45:18 CAT 2020

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts        <http://www.twitter.com/BullsBears2010> Twitter         <https://www.facebook.com/BullsBearsZimbabwe> Facebook           <http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn          <https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp         <mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Major International Business Headlines Brief::: 23 June 2020

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

ü  Trump targets foreign workers with new visa freeze

ü  S.Africa's budget deficit to widen sharply, remain high after COVID-19

ü  Lawsuit alleges defeat devices in petrol cars

ü  Former chancellor Sajid Javid warns against return to austerity

ü  S.Africa's Aspen says it has capacity to meet demand for dexamethasone

ü  Rwanda’s economy expected to grow 2% in 2020, 6.3% in 2021 - finance minister

ü  Nigeria's WTO candidate gets regional backing - document

ü  British Gas owner plans to launch cheaper energy rival

ü  Mozambique offers $2.25 bln funding guarantee to LNG project, says report

ü  Edcon creditors go to court to halt restructuring meeting

ü  S.Africa's Telkom axes dividends for 3 years after profit slide

ü  Ivory Coast 2019/20 cocoa port arrivals seen at 1.936 mln T by June 21 - exporters

ü  South Africa to oppose SA Airlink's bid to halt SAA creditors meeting

ü  Wirecard: Scandal-hit firm says missing €1.9bn may not exist

ü  Apple Mac computers make jump to its own chips

 <mailto:info at bulls.co.zw> 

Trump targets foreign workers with new visa freeze

US President Donald Trump has extended a pause on some green cards and suspended visas for other foreign workers until the end of 2020.

High-skilled tech workers, non-agricultural seasonal helpers, au pairs and top executives will be affected.

The White House said the move will create jobs for Americans hurting economically due to the pandemic.

But critics say the White House is exploiting the coronavirus pandemic to tighten up immigration laws.

Who's affected?

In a briefing for reporters, the administration said the freeze, in place through the end of the year, would impact about 525,000 people.

That includes an estimated 170,000 people blocked by the decision to extend a ban on some new green cards - which grants permanent residence to foreigners. The White House first announced it was halting those visas in April, an order that had been set to expire on Monday.

Trump signs immigration green card suspension

Existing visa holders are not expected to be affected under the new restrictions announced on Monday.

The order also applies to H-1B visas, many of which are granted to Indian tech workers. Critics say these visas have allowed Silicon Valley companies to outsource American jobs to lower-paid foreign employees. Last year, there were about 225,000 applications competing for 85,000 spots available through the H1-B visa programme.

The order will suspend most H-2B visas for seasonal workers, including those in the hospitality industry, except those in agriculture, the food processing industry and healthcare professionals.

The order will restrict J-1 short-term exchange visas, a category that includes university students and foreign au pairs who provide childcare. Professors and scholars are not included in the order. There will be a provision to request exemptions.

L visas for managers and other key employees of multinational corporations will also be suspended.

What's the reaction?

The aim is to get "the best and the brightest" and "the most value for our economy," a senior official said on the background call.

Mark Krikorian, executive director of the Center for Immigration Studies, which favours restrictions, told AP news agency: "This is a bold move by the Trump administration to protect American jobs."

But the American Civil Liberties Union said: "It's the exploitation of a pandemic to reshape immigration law, while superseding Congress."

The new policy is also opposed by many businesses, which rely on foreign workers.

"As the economy rebounds, American businesses will need assurances that they can meet all their workforce needs," the Chamber of Commerce wrote in a letter this month warning against new restrictions.

"To that end, it is crucial that they have access to talent both domestically and from around the world."--BBC

 <mailto:info at bulls.co.zw> 

S.Africa's budget deficit to widen sharply, remain high after COVID-19

JOHANNESBURG (Reuters) - South Africa’s consolidated budget deficit is expected to widen markedly this year, a Reuters poll found, with its National Treasury struggling to squeeze it back to levels it anticipated before the coronavirus pandemic disrupted economic activity.

The poll, taken over the past week, showed a median of 21 economists expect the government budget deficit for this year to widen to a record 14% of gross domestic product, from an official estimate of 6.3% of GDP in the last financial year.

Finance Minister Tito Mboweni is due to deliver an emergency budget on Wednesday in response to the COVID-19 crisis.

“The focus in this budget will be partly on the magnitude of the deficits and, in turn, funding requirement, and perhaps even more importantly whether government can credibly project debt stabilisation in the medium-term,” said Standard Bank’s Elna Moolman.

Forecasts in the poll for the budget deficit over the next two years show a median of just over 10.1% of GDP next year and 9.5% the following year.

South Africa’s last budget announcement, made in February before the novel coronavirus outbreak took hold, had assumed the deficit would widen slightly to 6.2% of GDP, before narrowing to 5.7% of GDP.

February’s budget estimates by the government were based on economic growth forecasts OF 0.9% for the 2020/21 year, then 1.3% and 1.6% for the next two years.

The latest Reuters poll estimated the economy would shrink 6.5% this calendar year. Next year it is forecast to grow 2.9% and then 1.5% in calendar year 2022.

ADDITIONAL FUNDING

Answers to an additional poll question that asked what were the three most probable options the government would use to raise additional revenue included an International Monetary Fund (IMF) loan and scaling up local weekly Treasury auctions.

JP Morgan analysts wrote the official sector would meet most of the increase in this year’s funding needs, with likely around 2% of GDP funding from multilateral lenders (the IMF, World Bank, New Development Bank), 2% from the South African Reserve Bank in the form of bond purchases, and a further 2.5% of GDP from either open market operations or a COVID-19 bond.

In the case of the IMF it would take the form of its Rapid Finance Instrument (RFI) - a loan with fewer conditions than fully fledged programme. Two months, ago South Africa said it could qualify for as much as $4.2 billion at 1%.

Since then, RFI limits to lending amounts have been bumped up in response to the COVID-19 emergency.

The New Development Bank, established by the BRICS group of emerging nations, has approved a $1 billion COVID-19 emergency loan to South Africa, the National Treasury said on Saturday.

($1 = 17.4151 rand)

Lawsuit alleges defeat devices in petrol cars

Up to 1.4 million Renault and Nissan vehicles sold in Britain could be equipped with illegal defeat devices, according to a lawsuit being launched today.

They include a petrol-powered version of one of the UK's best-selling family cars, the Nissan Qashqai.

The law firm behind the case, Harcus Parker, claims that some cars produced up to 15 times the legal level of nitrogen oxides when used on the road.

Both companies deny the claims.

Harcus Parker says it has seen independent test data which suggests that 1.3 million diesel cars built by Nissan and its French partner Renault may have been fitted with defeat devices.

These are systems which turn emissions controls on when the vehicle is being tested, but switches them off when it is being used on the road - in order to improve their performance, reliability or both.

Emissions scrutiny

But it also claims that up to 100,000 petrol powered cars may have been affected as well. These are Nissan Qashqais fitted with a 1.2 litre engine.

Emissions from diesel vehicles have come under heavy scrutiny since 2015, following a major scandal involving the German giant Volkswagen.

Volkswagen has paid out more than €30bn (£27bn) in fines, compensation and buyback schemes as a result. It is continuing to fight a number of consumer lawsuits, including one in the UK involving some 90,000 car owners.

Petrol cars, however, generally produce lower quantities of nitrogen oxides (NOx) than diesels, and have not previously been shown to have been involved in emissions cheating - although there have been some claims to the contrary.

Harcus Parker claims that the 1.2l Qashqai produces many times the legal level of NOx when used in real world driving conditions.

It says that tests carried out by the Department for Transport (DfT) in 2017 confirmed that this was the case.

The DfT subsequently asked Nissan if it could modify the design to reduce emissions - but this never happened.

'Best behaviour'

"For the first time, we have seen evidence that car manufacturers may be cheating emissions tests of petrol, as well as diesel vehicles", says Damon Parker, senior partner at the law firm.

"The data suggests to me these vehicles much like some VWs and Mercedes cars, know when they are being tested - and are on their best behaviour then and only then".

Harcus Parker claims this means customers overpaid for their vehicles, and should be entitled to some £5,000 each in compensation.

"All Groupe Renault vehicles are, and always have been, type-approved in accordance with the laws and regulations for all the countries in which they are sold and are not fitted with 'defeat devices'", Renault said in a statement.

Nissan said the following in response to the planned lawsuit:

"Nissan strongly refutes these claims. Nissan has not and does not employ defeat devices in any of the cars that we make, and all Nissan vehicles fully comply with applicable emissions legislation."

Nissan said the 2017 report showed variances for most brands involved. and that it said that the Nissan vehicle tested complied "with all required regulatory limits."

Emissions Analytics, an independent firm which specialises in emissions testing carried out in 'real world' conditions, agrees that the petrol Qashqai does produce very high levels of NOx.

"We tested this same engine some time ago", says founder Nick Molden.

"We found it produced about 16 times more NOx in real world conditions than the official level".

Nissan, however, insists that "emissions standards have evolved since 2017, and we have introduced a new range of powertrains to meet them".--BBC

Former chancellor Sajid Javid warns against return to austerity

Former chancellor Sajid Javid has warned against a return to austerity as the UK economy struggles with the effects of the coronavirus crisis.

In a report by the Centre for Policy Studies, he called for low taxes on business to aid the UK's recovery.

The conservative think tank, which was co-founded by Margaret Thatcher, said it should be based on "a dynamic private sector and low taxes."

Labour has said the government should have offered more generous support.

The report by the think tank said that a quick economic bounce back from the coronavirus crisis is is not likely.

But it said coronavirus emergency spending measures should be stopped, if possible, by April 2021.

It said that polls suggest the UK is "not ready" to return to austerity measures introduced by former chancellor George Osborne, "necessary though they were".

Instead, the report calls for tax to shift away from profits and incomes and towards reformed property tax and tightening tax reliefs "which unduly favour the wealthy".

National insurance should be given a "significant temporary" reduction to make it cheaper for employers to take on staff.

'Optimistic' hopes

The former cabinet minister, who resigned from the Treasury in February, said "early hopes of a V-shaped recovery" had "proved optimistic".

He predicted that "some long-term damage to the economy" had become "unavoidable", with as many as 2.5 million people out of work due to the Covid-19 lockdown.

But to speed up the rate of people re-entering employment, Mr Javid argued in the After The Virus report, published on Tuesday, that ministers must make it easier for businesses to hire workers.

"If we want to support and stimulate employment, then axiomatically the best option is to cut the payroll tax - employer's National Insurance," Mr Javid said.

"Tax employment less, and all other things being equal you will end up with more of it."

Other recommendations made in the report include temporarily cutting VAT and bringing forward "shovel ready" infrastructure projects, with Mr Javid arguing that the "only way out of this crisis is growth".

He joins fellow former chancellor Alistair Darling in calling for an emergency VAT cut to boost consumer spending, a move undertaken by the Labour peer after the 2008 financial crisis.

Mr Javid said: "If we want to secure the strongest possible recovery, it's essential that no stone is left unturned."

The Labour Party, in a report in March on the economic effects of coronavirus, criticised the government for acting too slowly and said it should underwrite a bigger proportion of wages for those who lose their jobs--BBC

S.Africa's Aspen says it has capacity to meet demand for dexamethasone

JOHANNESBURG (Reuters) - South Africa’s pharmaceutical giant Aspen Pharmacare Holdings Ltd said on Monday the company had sufficient local capacity to produce injections to meet any demand surge for dexamethasone.

The 60-year-old drug dexamethasone has been found to be able to save the lives of COVID-19 patients, scientists at University of Oxford said last week, calling the discovery a “major breakthrough”.

Aspen, South Africa’s biggest supplier of drugs with a market share of 22% in sub-Saharan Africa, manufactures both the injectable and tablet forms of the drug, mainly used for treatment of tumours, asthma and other respiratory ailments.

“Aspen fortunately has necessary capacity ... to ramp up considerably,” said Stephen Saad, Group Chief Executive of Aspen, referring to its South African facilities.

The drug can get to market quickly as it is already registered, Saad said in an emailed reply to Reuters questions.

South Africa, however, does not have capacity for tablets which has to be sourced from Aspen’s global supply network, he said.

Tablet production will be increased from its German plant, which has sufficient scope for increased capacity, he said.

Aspen’s shares were up 3.38% on Monday after hitting a 19-month high after the news. The broader index was up 0.16%.

South Africa’s health ministry said on Friday the government currently had a stock of 300,000 ampoules of dexamethasone and can secure supplies of the drug from local players.

The government has contacted Aspen to source the drug not only for South Africa but for rest of the continent, Saad said.

The health ministry did not reply to an emailed request for comment.

Aspen said it had not entered into any price negotiations with the government, but being a cheap drug - with the injectable form at around 10 rand ($0.5777) each and tablets at about 2 rand - the price would not be a major issue.

“Our full focus has been on meeting patients need globally,” the chief executive said.

($1 = 17.3106 rand)

Rwanda’s economy expected to grow 2% in 2020, 6.3% in 2021 - finance minister

(Reuters) - Rwanda’s economy is expected to grow 2% in 2020, 6.3% in 2021 and 8% in 2022 the finance minister said on Monday, as he presented the budget to parliament.

Uzziel Ndagijimana said tourism revenues had decreased by 35% so far, while foreign direct investment would decrease by 62% because of the impact of COVID-19 on trade.

Nigeria's WTO candidate gets regional backing - document

GENEVA (Reuters) - The West African regional bloc ECOWAS is backing Nigeria’s candidate to head the World Trade Organization (WTO) and calls on other African countries to follow, a document showed on Monday, in a possible step towards uniting Africa behind her.

“The ECOWAS authority of heads of state and government...calls on other African countries as well as non-African countries to endorse her candidature,” the document, signed by Niger’s President and ECOWAS chairman Mahamadou Issoufou said, referring to Nigeria’s Dr. Ngozi Okonjo-Iweala.

It was dated June 19 but was not finalised until Monday.

Brazil’s Roberto Azevedo is stepping down as WTO head a year early at the end of August.

His successor will need to steer reforms and negotiations in the face of rising protectionism, a deep recession caused by the COVID-19 pandemic and growing trade tensions, notably between the United States and China. [nL8N2D7249]

There is broad support for an African candidate and a woman, since neither have headed the Geneva-based body in the past, sources following the process said. Supporters of Okonjo-Iweala, a former minister and World Bank managing director, vaunt her negotiating skills, including clinching a multi-billion dollar debt relief package for Nigeria.

Africa has previously struggled to unite behind one WTO candidate and this time has so far been no different.

The African Union (AU) was due to officially endorse one of three pre-selected candidates from Benin, Egypt and Nigeria.

But the process was disrupted by COVID-19 measures and Nigeria swapped its candidate this month, prompting Egypt to protest to the AU, sources following the process said.

The latter found that Nigeria had broken AU rules by changing its submission, a document showed. An AU official declined to comment.

Dr. Ngozi Okonjo-Iweala’s spokeswoman said: “Dr. Ngozi’s goal is to earn the support of all African countries, and she’s humbled by the support she’s already received. There is time for most if not all of Africa to unite behind one candidate.”

British Gas owner plans to launch cheaper energy rival

The UK's biggest household energy supplier, British Gas, will soon face competition from a new, cheaper supplier from its own stable.

Parent Centrica has been trialling a digital-only "challenger" brand under the name British Gas X amid the highly competitive world of energy supply.

The company has been shedding customers and this month said it would cut 5,000 jobs.

Centrica would not comment but is expected to give more details in July.

A test website for British Gas X is already up and running. It says the service is designed for "digitally savvy" customers, with everything done online.

It also says customers can "switch at any time with no exit fees" and that the energy they use will be offset from "100% renewable" sources.

Centrica plans to base its new no-frills service on this platform, however a final name has yet to be decided.

Evolving landscape

British Gas, once the sole supplier of gas to the country, is still the dominant force in energy supply with more than seven million customers, but it faces tough competition. Last year alone it lost almost 290,000 customers.

Energy regulator Ofgem says there are currently around 60 suppliers operating around the country, and the landscape continues to evolve.

Until recently supply was dominated by a "Big Six" but that is breaking down. Incomer Ovo recently bought major supplier SSE, and medium-sized players such as Shell-backed First Utility are making inroads.

Meanwhile, a clutch of smaller entrants have tried and failed to make money in this market, with more than 20 going under in the past year.

Job cuts

Centrica's jobs shake-up was ordered by its new chief executive, Chris O'Shea. He said the company had more than 80 different employee contracts, "each with multiple variants, with many of the agreements dating back over 35 years", which, he said, needed to be modernised.

Centrica currently has about 27,000 employees, with 20,000 of these based in the UK.

In February, the firm blamed a big loss in 2019 on falling gas prices and the energy price cap.

The price cap on electricity and gas bills came into effect in January 2019 and was a flagship policy of former prime minister Theresa May to end what she called "rip-off" prices.

A number of energy companies have said the policy has affected their business and profits. Centrica made a loss of £849m in the last calendar year compared with a £987m profit in 2018.--BBC

Mozambique offers $2.25 bln funding guarantee to LNG project, says report

JOHANNESBURG (Reuters) - Partners in Mozambique LNG, the $20 billion gas project led by Total, have received a $2.25 billion guarantee from the government that it will pay the state oil company’s equity share if required, Portugal’s Lusa news agency said.

Carlos Zacarias, president of Mozambique’s regulator, the National Petroleum Institute (INP), said state financing had been secured, the news agency reported late last week.

Partners agreed to accept a $2.25 billion government guarantee in lieu of an immediate equity contribution from state-run National Hydrocarbon Company (ENH), Zacarias said in Cabo Delgado, the northern province where the project is sited.

Zacarias said the guarantee was valid for five years.

A spokesman for ENH did not immediately respond to a request for comment and INP could not immediately be reached. A Total spokesman in Mozambique said he had no information on the report.

Each partner in the project, one of several LNG developments in the region following a massive gas find off Mozambique’s coast, is required to make a minimum capital contribution.

ENH has a 15% interest in the project that is expected to start production in 2024, while Total owns 26.5% after acquiring its stake from Anadarko for $3.9 billion in 2019.

The French energy major has secured $15 billion in funding for the project. Signing for the financing is due to take place on June 30, a source with knowledge of the project said.

Edcon creditors go to court to halt restructuring meeting

JOHANNESBURG (Reuters) - A group of creditors of South African retailer Edcon has made a court application to halt meetings scheduled for Monday to consider a proposed restructuring plan for the company which is under bankruptcy protection.

Edcon, which owns department store chain Edgars and budget retailer Jet, entered a form of bankruptcy protection in April after its sales were hit after the coronavirus crisis lockdown.[nL5N2CH44E]

Edcon, which opened its first Edgars store in Johannesburg in 1929, had already been struggling due to falling local demand and slow economic growth in South Africa.

Administrators in charge of Edcon are proposing a sale of parts or all of the company and about 15 parties have shown interest in the sale. [nL8N2DL68D]

The administrators said on their website that the application to halt Monday’s meeting would put the Edcon sales process and jobs at risk. It said the sale needed to be finalised by end-June to allow time for supplier negotiations to be concluded and for summer stock to be purchased.

The creditor group - Durban-based Kingsgate Clothing and Clematis Trading - filed the application with a high court in Pretoria on Friday, documents on Edcon’s administrators’ website showed.

In the application, the creditors said that Kingsgate and its associate companies were owed 24 million rand, and Clematis about 18.5 million rand by Edcon.

Kingsgate CEO Yusuf Vahed said in the application that between May 18 and June 8, when the restructuring plan was published, Clematis CEO was advised by Edcon that they could anticipate a potential liquidation dividend of about 50 cents on the rand if the rescue plan was adopted.

“When the concurrent (unsecured) creditors saw the plan, they were totally shocked and startled to see that what was being suggested was an anticipated dividend to them of 4 cents in the rand,” the creditor group said.

Vahed said this would mean Kingsgate, a clothing manufacturer, and its associated companies, would recover only about 960,000 rand. Vahed also said if this was the case then it was keen to convert its debt into equity.

Lance Schapiro, one of Edcon’s administrators, said the meetings should proceed as scheduled later on Monday.

“Creditors will be given the opportunity to amend or adjourn the meeting,” Schapiro said on the website.

The total amount owed to Edcon’s creditors is approximately 8.1 billion rand ($465.60 million), the documents published on the administrator’s website said.

($1 = 17.3970 rand)

S.Africa's Telkom axes dividends for 3 years after profit slide

JOHANNESBURG (Reuters) - South African telecoms provider Telkom suspended dividends for three years on Monday, aiming to conserve cash after a 66% slump in full-year earnings and ahead of this year’s planned auction of radio frequencies.

Telkom is undergoing a restructuring of its business as it grapples with declining performance in fixed-line voice services and a shift in demand to mobile data and fibre networks.

“The imminent spectrum auction will require a substantial amount of capital and it is of strategic importance for Telkom to participate to ensure the sustainability of the mobile business,” it said in its full-year results statement.

The retained dividend cash will also be redirected towards the company’s capital expenditure programme.

Telkom declared a dividend of 50.08 cents per share for the year to March 31, but said its next three annual payouts would be suspended. The operator of South Africa’s biggest fixed-line network also withdrew its medium-term targets, citing exceptional economic weakness and heightened uncertainty.

Shares in the company were down 5.6% at 25.98 rand by 1234 GMT.

Telkom aims to build 1,000 new mobile telecoms towers in the next three years, with 600 sites in the new-build pipeline, it said.

“We believe that South Africa is expected to show strong demand for towers over the next 10 years ... driven by increasing data consumption and the introduction of new technologies such as 5G,” Group Chief Executive Sipho Maseko said on a conference call.

The company warned that current market conditions have made it more challenging to dispose of non-core properties at satisfactory prices. This will be exacerbated by the economic impact of the coronavirus crisis, it added, meaning it might not dispose of further assets in the next financial year.

Telkom reported a 66% slump in headline earnings per share (HEPS), the main profit measure in South Africa, citing one-off costs attributed to job cuts and the coronavirus crisis.

($1 = 17.3732 rand)

Ivory Coast 2019/20 cocoa port arrivals seen at 1.936 mln T by June 21 - exporters

ABIDJAN (Reuters) - - Cocoa arrivals at ports in top grower Ivory Coast reached 1.936 million tonnes between Oct. 1 and June 21, exporters estimated on Monday, down 6.9% from 2.080 mln tonnes over the same period last season.

About 6,000 tonnes of beans were delivered to Abidjan port and 20,000 tonnes to San Pedro between June 15 to June 21 for a total of 26,000 tonnes, up from 25,000 during the same week last season.

South Africa to oppose SA Airlink's bid to halt SAA creditors meeting

JOHANNESBURG (Reuters) - The South African government on Monday said it planned to oppose an application by regional airline SA Airlink to put South African Airways (SAA) into provisional liquidation and prevent a meeting of SAA’s creditors to discuss a restructuring plan.

State-owned SAA went into a form of bankruptcy protection in December and since then state-appointed administrators have been trying to see what they can salvage.

SAA has failed to turn a profit since 2011 after expansion into competitive, loss-making global routes. Its problems were exacerbated when the airline had to suspend commercial passenger flights in March due to COVID-19 crisis.

SAA’s creditors were due to meet on Thursday this week to consider a proposed business rescue plan for the airline.

But the Department of Public Enterprises said on Monday it had been notified of a court application by SA Airlink to stop the meeting taking place and that unions separately had taken action to stop the meeting.

SA Airlink and the unions - which include NUMSA and SACCA - did not immediately respond to requests to comment.

The unions have rejected job cuts proposed to rescue the cash-strapped airline.

The current restructuring plan, which would involve laying off about 90% of staff leaving just 1,000 jobs, will cost at least 10 billion rand ($575.49 million). That is on top of the 20 billion rand that has been spent just keeping the airline afloat in the past three years.

The ministry also said it would approach the court to oppose SA Airlink’s application that SAA be placed under provisional liquidation.

“It is disturbing that a competitor of SAA, which is 100% privately owned, as well as two labour unions, who should be acting in the best interest of their members, are seeking to destroy SAA by forcing a liquidation through the courts,” the Department of Public Enterprises said in a statement.

Rescue efforts for SAA have been the subject of fierce wrangling between the government, which wants SAA retained as a national asset, and the administrators who took over the airline in December after almost a decade of financial losses.

($1 = 17.3766 rand)

Wirecard: Scandal-hit firm says missing €1.9bn may not exist

Scandal-hit payments firm Wirecard has said the €1.9bn (£1.7bn) missing from its accounts simply may not exist.

Wirecard's chief executive quit on Friday as the search for the missing cash hit a dead end in the Philippines.

On Sunday the central bank of Philippines said none of the money appears to have entered the country's financial system.

The German company also said it was withdrawing its financial results for 2019 and the first quarter of 2020.

"The Management Board of Wirecard assesses on the basis of further examination that there is a prevailing likelihood that the bank trust account balances in the amount of 1.9 billion EUR do not exist," the company said in a statement on Monday.

The missing money accounts for around a quarter of its total balance sheet.

Wirecard boss quits amid hunt for missing €1.9bn

The company said it was continuing to discuss a financial lifeline with banks, including a current arrangement that is due to expire at the end of this month.

It said it was also considering several potential plans to save the company, including cost cuts, the restructuring of its operations, and selling or shutting parts of the business.

The scandal emerged after a series of articles in the Financial Times last year focusing on alleged accounting irregularities in Wirecard's Asian operations.

The missing money was supposed to be held in accounts at two Asian banks and had been set aside for "risk management", the company said.

The exit of Wirecard's chief executive Markus Braun on Friday came after auditor EY refused to sign off its 2019 accounts over the missing funds.

Wirecard joined Germany's blue-chip Dax 30 share index two years ago. At the time, it was valued at €24bn, but its shares have crashed in recent days giving it a stock market valuation of less than €3bn.--BBC

Apple Mac computers make jump to its own chips

Apple has confirmed it will transition its Mac laptop and desktop computers to its own ARM-based processors.

The move means that Macs will run on the same type of chips as the firm's iPhones and iPads, rather than Intel's.

Intel had faced problems manufacturing its own designs, leading it to issue a public apology to computer-makers.

Apple's challenge will be to carry off the transition smoothly and convince third-party developers to update their apps accordingly.

"We expect to ship our first Mac with Apple silicon by the end of the year," said chief executive Tim Cook, adding that it would likely be two years before its full product line had made the jump.

The firm said the move would allow it to offer new features and improved performance as well as making it easier for developers to "write and optimise software for the entire Apple ecosystem".

The announcement was made at Apple's annual Worldwide Developers Conference (WWDC).

"Apple's motivations for doing this include reducing its dependence on Intel, maximizing its silicon investment, boosting performance and giving itself more flexibility and agility when it comes to future products," commented Geoff Blaber from the consultancy CCS Insight.

"Embracing ARM and making its hardware more consistent across the iPhone, iPad and Mac ranges is a strategic necessity, but there will be inevitable bumps along the road."

Apple said it had already developed native versions of several of its own apps, including Final Cut Pro X and Logic Pro. iPhone and iPad apps will also be able to be run on the computers.

Apple said that Microsoft was working on an optimised version of Office, and Adobe was developing a version of Photoshop.

Other developers should be able to recompile their apps to get a version running "in just a matter of days," said the company's software chief Craig Federighi. He added that old apps would automatically be translated at point of installation to run, although they would not work as well.

To mark the significance of the move, MacOS will move to version 11. Since 2001, it had only moved from 10.0 to 10.15.

Apple silicon

Apple successfully made the switch from IBM-Motorola's PowerPC processors to Intel's x86 family in 2006.

However, some software was never updated and cannot easily be run on today's Mac computers. Apple dropped support for running older software under emulation in the 2011 release of its Mac operating system.

Microsoft already allows Windows 10 to be run on both Intel and ARM-based processors and looks set to continue supporting both chip architectures.

Apple has not stated how long it will do the same.

As a result, some people considering buying one of its laptop or desktop computers may decide to postpone a purchase until its first ARM-based computers go on sale.

This could hit sales both at Apple and the development studios that make software for the platform.

ARM-based chips are based on the designs of the UK-based company, which is headquartered in Cambridge. Other companies then adapt these to add capabilities of their own.

Samsung, Qualcomm and Huawei are among the many other companies to do so.

Apple is the fourth-largest PC vendor, according to market research firm Gartner, coming behind Lenovo, HP, and Dell.

The company has said that it has more than 100 million active Mac users. Back in June 2005, when it first announced the move to Intel chips, the figure was about 12.5 million.

"Apple is approximately 4.5% of the laptop market and 2.6% of the desktop market, so the financial impact to Intel will not be significant," commented Gartner's Jon Erensen.

"However, this transition... could give momentum to Microsoft's current efforts to run Windows on Qualcomm's Snapdragon processors."

Existing Mac owners will see changes to the next MacOS operating system - called Big Sur - which Apple said marked its biggest redesign to date.

Analysis by James Clayton, North America technology reporter

The best way to describe a processor is the brain of the computer.

Hardly surprising then that the processor in your computer is kind of important. Changing it is no small thing - and Apple hasn't decided this lightly.

The big question though - and the one that if you're reading this you're probably more interested in - is what will this do for Macs in general?

The prevailing view in Silicon Valley is moving to Apple silicon will make for more powerful Macs.

Bringing it in-house could create cheaper processors - so in theory you could have cheaper Macs (that's if Apple wanted to pass on savings to the consumer).

But there are risks too.

The first is that Apple still has Intel-based Macs yet to come out. Will people simply wait for Apple's new processor to go live before choosing to buy a new computer?

And - considering how well Mac products sell there will be a nervousness about changing a formula that has worked very well for Apple for the last 15 years.

Privacy notices

Other announcements at WWDC included the ability to use an iPhone as a substitute for a car key by transmitting an NFC (near-field communication) signal to unlock doors and start the engine.

This will initially be limited to some new BMWs, but the firm said it intended to expand to other models in time.

App developers will also have to provide more information about the data they gather about users, so that Apple can display a summary to them before they install the software.

One of the biggest changes to the iPhone's iOS14 operating system will be a shake-up of the home screen.

Apps can now be automatically organised into folders containing:

In addition, the firm is updating its "widgets" - blocks that display a stripped-down, small app window - so that they can be placed among the icons for other programs. Examples included weather forecasts, news briefings, and calendar meetings. Android already has something similar.

Another Android-like new feature is the introduction of App Clips, which allow part of a program to be downloaded quickly. These must be less than 10 megabytes in size and will be able to be triggered via an NFC-transmission or by scanning a QR code.

Suggested uses included the ability to order a drink in a cafe or to pay for a car-parking space.

Apple is also releasing a new app called Translate that carries out language translations offline, offering an alternative to Google Translate.

It will support 11 languages to begin with including English, Mandarin, French, German, and Arabic.

For the first time, users will be able to set third-party email and web browser apps as the default in iOS, rather than Apple's own software.

The UK and Ireland will be among countries given access to an overhauled version of its Maps app, which provides more detailed views of roads and paths than before - as well as new cycling directions and routes for electric cars that pass charging stations.

And its MeMoji cartoon-like characters now feature new styling options, including the addition of protective face masks.

Apple's tablet operating system iPadOS will also benefit from several enhancements to its Pencil stylus.

These include:

conversion of scribbled words and numbers into typed text

detection of both Chinese and English-language characters, with the ability to convert both appropriately within the same scribbled line

automatic tidying-up of drawings

The next version of WatchOS adds sleep-tracking functionality to the firm's smartwatch - which will be based on a user's movements in bed.

It also adds the ability to determine when the owner is washing their hands, in order to confirm whether they have done so for long enough to help protect against Covid-19.

In addition, the wearable will allow third-party "curated" watch faces to be shared and installed. The Activity app - which is now renamed Fitness - will track calories used for various dance styles.

Apple's AirPod Pro earphones will gain spatial audio to recreate a cinema-style surround sound experience. They will also automatically switch between a user's Apple devices as the owner moves from one to another.

And the firm's Apple TV set-top box will soon allow compatible third-party video doorbells to live-stream footage of visitors to television screens, while iOS 14 will make it possible to use facial recognition to identify them.

The company said Homekit-compatible security cameras will now offer facial recognition when viewed on an Apple TV

This will only work with members of the owner's family and friends, who need to be tagged in advance.--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.

(c) 2020 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:  <mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77 344 1674

Invest Wisely!

Bulls n Bears 

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 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200623/12ceb6c1/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 30905 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200623/12ceb6c1/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 35508 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200623/12ceb6c1/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 33750 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200623/12ceb6c1/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 31439 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200623/12ceb6c1/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200623/12ceb6c1/attachment-0009.jpg>