Major International Business Headlines Brief::: 21 October 2020

Wed Oct 21 07:29:38 CAT 2020

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Major International Business Headlines Brief::: 21 October 2020

 <http://www.spidexmedia.com/> 

ü  Machines to 'do half of all work tasks by 2025'

ü  Cathay Pacific axes regional carrier and 8,500 jobs

ü  Google hit by landmark competition lawsuit in US over search

ü  UK job losses 'could be larger than forecast'

ü  South Africa: National Broadcaster Wants DStv, Netflix Users To Pay TV Licence Fee

ü  Namibia: National Airline to Restart Flights to Johannesburg and Cape Town

ü  Mastercard Foundation and ICCO Cooperation Partner to Strengthen the Resilience of 80,000 Farmers in Senegal

ü  Nigerians Kick As Govt Makes Move to Apply for $11bn Loan to Construct Lagos-Calabar Rail Line

ü  U.S. says Google breakup may be needed to end violations of antitrust law

ü  Cathay Pacific to slash workforce, end Cathay Dragon brand due to pandemic

ü  Netflix falls short on new subscribers as pandemic boost fizzles

ü  Global Markets: Asian stocks gain on U.S. stimulus hope, yuan surges

ü  Snap shares jump as user growth, revenue beat estimates

ü  Shale producer Pioneer Natural to buy rival Parsley for $4.5 billion in all-stock deal

ü  Amazon extends work from home option till June

 <mailto:info at bulls.co.zw> 

Machines to 'do half of all work tasks by 2025'

Half of all work tasks will be handled by machines by 2025 in a shift likely to worsen inequality, a World Economic Forum report has forecast.

The think tank said a "robot revolution" would create 97 million jobs worldwide but destroy almost as many, leaving some communities at risk.

Routine or manual jobs in administration and data processing were most at threat of automation, WEF said.

But it said new jobs would emerge in care, big data and the green economy.

The Forum's research spanned 300 of the world's biggest companies, who between them employ eight million people around the world.

Robots 'to replace 20 million factory jobs'

More than 50% of employers surveyed said they expected to speed up the automation of some roles in their companies, while 43% felt they were likely to cut jobs due to technology.

WEF said the pandemic had sped up the adoption of new technologies as firms looked to cut costs and adopt new ways of working. But it warned workers now faced a double threat from "accelerating automation and the fallout from the Covid-19 recession".

"[These things have] deepened existing inequalities across labour markets and reversed gains in employment made since the global financial crisis in 2007-2008," said Saadia Zahidi, managing director at WEF.

"It's a double disruption scenario that presents another hurdle for workers in this difficult time. The window of opportunity for proactive management of this change is closing fast."

'Surge in demand'

WEF said currently around a third of all work tasks were handled by machines, with humans doing the rest, but by 2025 the balance would shift.

Roles that relied on human skills such as advising, decision-making, reasoning, communicating and interacting would rise in demand. There would also be a "surge" in demand for workers to fill green economy jobs, and new roles in areas like engineering and cloud computing.

But it said millions of routine or manual jobs would be displaced by technology, affecting the lowest paid, lowest skilled workers the most.

It said millions would need to be re-skilled to cope with the change, while governments would have to provide "stronger safety nets" for displaced workers.--BBC

Cathay Pacific axes regional carrier and 8,500 jobs

Cathay Pacific has announced it is closing its subsidiary Cathay Dragon and cutting 8,500 jobs.

Cathay Dragon was a full service regional carrier flying mainly to mainland China and other Asian destinations.

Hong Kong-based Cathay Pacific says it hopes to retain most of Cathay Dragon’s routes.

Many other airlines are on the brink of survival as the Covid-19 pandemic batters travel and tourism.

The cutbacks at Cathay Pacific are part of the airline group’s attempt to reduce costs during travel restrictions that governments have imposed to limit the pandemic.

Cathay says it has already tried to cut costs by deferring aircraft deliveries, implementing special leave schemes and cutting executive pay.

It also received a US$5bn (£3.9bn) bailout from the Hong Kong government in June.

But the airline group is still losing as much as $260m a month.

Staff cutbacks

Although the restructure will itself cost $284m, the airline said it will reduce costs by $64m a month in 2021.

Of the 8,500 positions that will be eliminated, 5,300 jobs will be from Hong Kong and a further 600 from overseas.

A total of 2,400 of positions are currently unfilled because of a hiring freeze and the closure of some overseas operations.

The job losses account for around 24% of the Cathay Pacific’s total staff.

The airline will also ask Hong Kong-based cabin and cockpit crew to agree to changes in their employment conditions “to match remuneration more closely to productivity”.

Cathay said this week that it expects to run at half capacity through next year.

Dragonair's inaugural flight at Hong Kong's Kai Tak airport in 1985.

Dragon down

Cathay Dragon, originally operated as Dragonair, when it was established in 1985. It had the financial backing of both Hong Kong and mainland Chinese investors.

Initially it operated charter flights to China and also flew to a handful of cities in South East Asia.

After adding new routes to its network, Cathay Pacific acquired a stake in the airline in 1990, and then bought it outright in 2006.

Cathay Pacific changed the brand name to Cathay Dragon in 2016.--BBC

Google hit by landmark competition lawsuit in US over search

The US government has filed charges against Google, accusing the company of violating competition law to preserve its monopoly over internet searches and online advertising.

The lawsuit marks the biggest challenge brought by US regulators against a major tech company in years.

It follows more than a year of investigation and comes as the biggest tech firms face intense scrutiny of their practices at home and abroad.

Google called the case "deeply flawed".

The company has maintained that its sector remains intensely competitive and that its practices put customers first.

"People use Google because they choose to - not because they're forced to or because they can't find alternatives," it said.

Monopoly concerns

The charges, filed in federal court, were brought by the US Department of Justice and 11 other states. The lawsuit focuses on the billions of dollars Google pays each year to ensure its search engine is installed as the default option on browsers and devices such as mobile phones.

Officials said those deals have helped secure Google's place as the "gatekeeper" to the internet, allowing it to own or control the distribution channels for about 80% of search queries in the US.

Alphabet boss Sundar Pichai at a 2018 hearing in Washington. In July, he assured Congress, "We conduct ourselves to the highest standard".

"Google has thus foreclosed competition for internet search," the lawsuit said. "General search engine competitors are denied vital distribution, scale, and product recognition - ensuring they have no real chance to challenge Google."

It added: "Google is so dominant that 'Google' is not only a noun to identify the company and the Google search engine but also a verb that means to search the internet."

The suit said the deals have hurt the public by damaging search quality in terms of privacy and data protection, reducing choice and thwarting innovation.

Sally Hubbard, who works for the Open Markets Institute, a Washington think tank that has long pushed for more aggressive action against big tech firms, said focusing on Google's search distribution deals was one of the easiest legal cases to make against the company.

On Twitter she said the lawsuit had "been so long coming but it's wonderful to see".

Broader effort

The case could be the first of many in the US that challenge the dominance of big tech firms and potentially lead to their break-up.

Other states have launched their own investigations, and said they may join the suit filed on Tuesday or file their own.

Politicians in Congress have also called for action against Google and fellow tech firms Amazon, Facebook and Apple in an effort that has united Democrats and Republicans.

US tech giants accused of 'monopoly power'

After the questions: What next for Big Tech?

The decision to file the lawsuit just a few weeks before the US presidential election has raised questions about whether it was simply a move by the Trump administration to prove its willingness to challenge the influence of the sector if it gains a second term.

But officials said they had not rushed the investigation to ensure it was filed before the election - noting that for years, many advocates have said the government was moving too slowly on such issues.

"We're acting when the facts and the law warranted," deputy attorney general Jeffrey Rosen said, adding that the department's review of competition practices in the technology sector is continuing.

Google has faced similar claims in the European Union. It is already appealing against €8.2bn ($9.5bn; £7.3bn) in fines demanded by the European Commission which include:

in 2018, a €4.3bn fine over claims it used Android software to unfairly promote its own apps

in 2019, a €1.5bn fine for blocking adverts from rival search engines.

Google parent Alphabet, which has a market value of more than $1tn, is expected to fight the allegations in the US as well. Its share price was little changed on Tuesday, despite the news.

Taking on a giant like Google will be one of biggest competition cases in decades. But the case - to decide if the California-based company abuses its market power - could last years.

European regulators have led the way in taking action against the tech giants. But this move by the US Department of Justice is a sign that the mood has turned against them at home too.

The complaint says that two decades ago Google was a scrappy innovative start-up - but now it's the monopoly gatekeeper to the internet.

Google stands accused of using anti-competitive tactics to shut out rivals and extend that monopoly. Google says people use it because they choose to rather than being forced.

Deciding who is right won't be a quick decision.--BBC

UK job losses 'could be larger than forecast'

UK unemployment could climb higher than current forecasts as the pandemic continues to hit jobs, a Bank of England policymaker has said.

Gertjan Vlieghe, a member of the Bank's Monetary Policy Committee, warned the jobless rate could rise above the Bank's predicted peak of 7.5%.

In a speech on Tuesday, he said not all of the current two million furloughed workers would return to their jobs.

"The risks are skewed towards even larger [job] losses," he said.

"Even though the headline rate of unemployment has moved up only moderately so far, evaluating unemployment accurately during the pandemic is a phenomenal challenge," Mr Vlieghe said.

At the height of the pandemic earlier this year more than 30% of the private sector workforce was on furlough, he pointed out.

job loss chart

Since then more than two-thirds have returned to work, but that still leaves 9% of the private sector workforce, or just over two million, who are not.

How many people are out of work?

Mr Vlieghe pointed out that in the global financial crisis of 2008-09 a net 3.3% of the workforce lost their job. In the 1990s recession, that number was 3.8%, and in the 1980s recession, it was 6.6%.

Figures released last week showed the unemployment rate hit 4.5% in the three months to August, the highest in more than three years, while redundancies rose to their highest level since 2009

'Downside risks'

In August. the Bank of England forecast that the unemployment rate would reach a peak of 7.5%, implying aggregate net job losses on the same scale as in the global financial crisis.

furlough chart

But that figure looks like an underestimate now, Mr Vlieghe said.

"The fact that redundancies are rising sharply and the number of vacancies is only at around 60% of its level at the start of this year makes it difficult to see a scenario where all of the remaining furloughed workers are reintegrated seamlessly into the labour force," he said.

There is huge uncertainty about the scale of job losses, in both directions, he added, "but in my view, the risks are skewed towards even larger losses, implying even more slack in the economy than in our central projection."

He predicted the economy may need further financial stimulus, "given that virus prevalence has been increasing again recently" and "it appears that the downside risks to the economic outlook are starting to materialise".--BBC

South Africa: National Broadcaster Wants DStv, Netflix Users To Pay TV Licence Fee

Cape Town — Is the South African Broadcasting Corporation scared of competition?

South Africans are in shock after the South African Broadcasting Corporation has proposed that streaming services like Netflix, MultiChoice (DStv) include a fee for TV licences.

In a presentation to parliament, the national broadcaster argued that the expanded definition of a TV licence is outdated and needs to be adjusted to current realities.

Deputy Communications Minister Pinky Kekana said during the presentation that the government's proposal is set to help the SABC improve its financial position and would include allowing the public broadcaster to collect licence fees from non-TV users.

Kekaha said that "we are not only limiting it to TV. We also have other platforms where people consume content and in all of those areas, that is where we should look at how we are able to get SABC licence fees from those gadgets."  This means that the SABC wants users who watch content on devices such as laptops and smartphones to also pay licence fees.

SABC added that the regulation will be similar to municipalities collecting traffic fines and motor vehicle licence disks.

The broadcaster has also called for improved access to national sports rights - specifically, it wants access to these broadcast rights at an improved rate.

A TV licence in South Africa currently stands at R265 per year and is valid for twelve months and renewed at the end of the licensing period.

This did not go well with users and they took to social media to air out their grievances.

@Realsoulkaay -  The plan is to see us living a miserable life neah? We ain't enjoying those old fishioned machina movies ko SABC 1. So leave Netflix out of this.

@tshepo_makoko -  How about we also pay for Opening our Eyes  to view Netflix while we are at it. The Quality of SABC doesn't allow them to require payment from any Soul under the Sun.

@Chante_Poppie -  So let me get this straight... You want me to pay for a tv license to use MY Netflix account, MY data & MY laptop/device all because you mismanaged funds? Next joke please SABC

@nuhaasoeker -  But for what though?  How is the SABC facilitating Netflix streaming on laptops when we pay for our own subscriptions and own WiFi? Please. The SABC is desperate for money.

@kabelodick -  I don't pay TV license cause I don't even know what programs are on SABC, I pay Dstv an watch that as well. Am not going to spend money on things I don't use do I look that stupid?

@MarietteAdams_ -  Auj, what does Netflix have to with TV? Nah, SABC your request has been noted, but we decline. No

@ShakesSampson -  I just wanna know how SABC thinks they're gonna charge us for Netflix . Like what are you gonna do? Ask me if I have a subscription? I'll just say no bro

Namibia: National Airline to Restart Flights to Johannesburg and Cape Town

National airline, Air Namibia on Monday announced that they will launch weekly flights to Johannesburg and Cape Town from 28 October.

The Windhoek - Johannesburg direct route will be operated on Wednesdays, Fridays and Sundays, whereas two flights between Windhoek - Cape Town (direct and Walvis Bay) will be operated on weekends, Fridays and Sundays.

Air Namibia's Interim CEO, Theo Mberirua said that the restart of the two routes is in line with the airline's restart plan, following the long layoff due to Covid-19.

"The decision to launch these routes are in line with Air Namibia's mandate and purpose for existence, creating air transport linkages to promote intra-Africa connectivity and regional integration," he said.

Mberirua said although the airline normally operates an extensive schedule that requires multiple destinations in order to feed the entire network, the move by Air Namibia to breathe new life into these two routes will provide smooth and convenient connections inbound and outbound, connecting Namibia to the world, and the world to Namibia.

"With the high season for this market looming and holidaymakers planning to visit our neighbouring country and vice versa, Air Namibia's operation will meet the growing demand with the resumption of these routes," he concluded.-Namibia Economist.

Mastercard Foundation and ICCO Cooperation Partner to Strengthen the Resilience of 80,000 Farmers in Senegal

Dakar, Senegal — ICCO Cooperation and the Mastercard Foundation have joined forces to support smallholder farmers in Senegal who were left reeling from the impact of COVID-19. The COVID-19 Recovery and Resilience Agrifinance Project (CORRAP), co-created with Senegalese producers, aims to support smallholders to recover from the pandemic and emerge stronger and more resilient to future crises and shocks.

The strategy relies on producer organizations and actors in agricultural value chains working together to help increase agricultural productivity, and to increase the empowerment of producers, including young people and women.

“For smallholder farmers to thrive, there is an urgent need for increased investment in the production of adapted certified seeds by strongly supporting research institutes like the Institut Sénégalais  de Recherche Agricole (ISRA). By doing so, smallholders in synergy with the value chain actors will make a sustainable contribution to food and nutrition security in Senegal,” said Idrissa BA, ICCO Cooperation’s Country Lead in Senegal.

The COVID-19 Recovery and Resilience Project (CORRAP) will see several stakeholders (ICCO Cooperation, the Mastercard Foundation, producer organizations, stakeholders in the rice, millet, sorghum, maize and cowpea value chains, as well as potato and onion producers) combine their efforts to facilitate:

(i) Sustainable access to quality inputs for smallholder farmers;

(ii) Continuous quality e-training and capacity building services through the digitization of agricultural value chains; and

(iii) Efficient access to market through the use of digital services to connect producers directly to consumers.

“Now more than ever, we need a concerted effort to start the rebuilding process and strengthen the resilience of local farmer groups and producer organizations as the first step to recovery. Our partnership with ICCO Cooperation is the beginning of this process for farmers in Senegal. By leveraging technology, we are enabling access to quality input and markets as well as developing the efficiency of the entire value chain,” explained Nathalie Akon Gabala, Mastercard Foundation’s Regional Head for Western, Central and Northern Africa.

An anticipated 80,000 smallholder farmers across 11 regions in Senegal will benefit from the project as their resilience is strengthened and their resources are mobilized to produce in the next two agricultural campaigns.

“The COVID-19 Recovery and Resilience Project, co-created by the Mastercard Foundation and ICCO, is perfectly aligned with Senegal’s agricultural policy, especially with the strategy outlined in the framework of the Agricultural Program for Sustainable Food Sovereignty. Indeed, it will contribute not only to the objective of strengthening the productive bases, but most importantly, promote the digitization of agricultural value chains while strengthening the capacities of producer organizations and their networks,” said Mr. Issa BARRO, Technical Advisor of the Senegalese Ministry of Agriculture and Rural Equipment.

ICCO

The COVID-19 Recovery and Resilience Project (CORRAP) will see several stakeholders (ICCO Cooperation, the Mastercard Foundation, producer organizations, stakeholders in the rice, millet, sorghum, maize and cowpea value chains, as well as potato and onion producers) combine their efforts to facilitate sustainable access to quality inputs for smallholder farmers.

The COVID-19 Recovery and Resilience Agrifinance Project is a two- and half-year program, with a commitment of USD 3.38 million from the Mastercard Foundation. Partners in this project include farmers networks, producer organizations, digital products providers, and other relevant stakeholders such as public agricultural agencies, business development services, financials services providers, and MSMEs.

About ICCO Corporation

ICCO Cooperation is an independent global NGO, established in 1964 in The Netherlands, with 20 offices in Latin America, Asia and Africa, among which is Senegal. The aim of ICCO is to build sustainable agricultural systems and secure the livelihoods and rights of smallholder farmers and businesses in low and middle-income countries. In particular, our projects increase the food and nutrition security of women and youth and expand their income and job opportunities. Our primary focus is on SDG 2 and 8. www.icco-cooperation.org

About the Mastercard Foundation

The Mastercard Foundation works with visionary organizations to enable young people in Africa and in Indigenous communities in Canada to access dignified and fulfilling work. It is one of the largest, private foundations in the world with a mission to advance learning and promote financial inclusion to create an inclusive and equitable world. The Foundation was created by Mastercard in 2006 as an independent organization with its own Board of Directors and management. For more information on the Foundation, please visit: www.mastercardfdn.org

About the Mastercard Foundation COVID-19 Recovery and Resilience Program

The Mastercard Foundation COVID-19 Recovery and Resilience Program has two main goals. First, to deliver emergency support for health workers, first responders, and students. Second, to strengthen the diverse institutions that are the first line of defense against the social and economic aftermath of this disease. These include universities, financial services providers, businesses, technology start-ups, incubators, government agencies, youth organizations, and non-governmental organizations.

Nigerians Kick As Govt Makes Move to Apply for $11bn Loan to Construct Lagos-Calabar Rail Line

Nigerians have condemned the move as announced by Minister of Transportation, Chibuike Amaechi, Tuesday, that the Federal Government was set to apply for a $11billion loan to construct Lagos to Calabar rail.

Amaechi made the disclosure during an interactive session with the South-East and South-South Professionals of Nigeria, SESSPN, in Lagos.

Condemning the move, some Nigerians on Twitter suggested the need for Federal Government to develop its own economy instead of borrowing all the time

@Cyril1309 "These people are just wicked, will these rail projects generate the money to fund these loans?? Why borrow this much to construct rails, that majority of Nigerians will never ride in till death! Why not fund projects that will boost the economy to repay the loans."

@ForOmooba "You guys enjoying applying for loans because of your interest in such loan and not in the interest of the nation. After all the contractor will say thank you for awarding the contract. We are burdened already with loans and u pple are still looking for more. Na wa for you guys."

@chiukwujioke "Another waste of resources... one-day una go sell us give china"

@theonce001' Any serious thinking nation would not loan Nigeria money at this time especially under this most clueless government. @POTUS stop every loan by Nigerian government until they account for the loans they took in the past. Reject their loan offer."

@trippleCseason "Na sign say dem don dey comot 4 power,dem wan borrow money so that we go enter power to dey pay their debt, better tell them, na person wey borrow money go pay am back o, this is Nigeria, not Fulani land"

@LeonAdegoke "Thank God now that most Nigeria is now realising that our leaders are not leading anything, they're just there leading themselves and I know that we are going to spark against them this time around, very useless people."

@almondslimming "What is this man up to? Who will approve this loan for him? Nigerians shine your eyes the same way that this man is shining his eyes."

@Charlez_Polak "Apply for a loan when you already have domestic and external debts in trillions of naira yet to be serviced. You still want apply for loan. What happened to the china loan that you are yet to pay back?"

@AdebayoOnisile "Every time you guys borrow money and we have not seen anything the money is used for. You have failed us."

@drealzeal "Loan, loan, who go pay, next-generation or what. If LCCI claims that EndSARS Protest cost 700bn lost for the Government, it literally means Nigerian government make such money in less than 2 weeks and thus, can sponsor any project even in trillions of Naira.EndBadGovernance"

@techteacherz "These guys make every project seem expensive. Addis Ababa built and a light rail of 31km for $475m and commenced operations in 2015. Lagos has been building light rail since over 10 years now it is still not up to 50% completion and it costs $1.4bn for a 35km line."

@Majiktect "Smh this is so unreasonable ... amidst all what is going on in the country they act like nothing is happening!!!!"

@CredoEngr "Make una kuku sell us to construct rails na. Borrow borrow, this is madness... You see your youth in agitation, you're still impoverishing us with more loans? Go and cut salaries of the politicians, use the offcuts to construct."

"Why loan, we have enough money for the projects. All the senators and legislators should bring out the money in their accounts. Or do they want to take it to their grave???"-Vanguard News Nigeria

U.S. says Google breakup may be needed to end violations of antitrust law

WASHINGTON (Reuters) - The U.S. sued Google on Tuesday, accusing the $1 trillion company of illegally using its market muscle to hobble rivals in the biggest challenge to the power and influence of Big Tech in decades.

The Justice Department lawsuit could lead to the break-up of an iconic company that has become all but synonymous with the internet and assumed a central role in the day-to-day lives of billions of people around the globe.

Such an outcome is far from assured, however, and the case is likely to take years to resolve.

The lawsuit marks the first time the U.S. has cracked down on a major tech company since it sued Microsoft Corp MSFT.O for anti-competitive practices in 1998. A settlement left the company intact, though the government's prior foray into Big Tech anti-trust - the 1974 case against AT&T - led to the breakup of the Bell System.

The federal government's complaint against Alphabet Inc's GOOGL.O, which alleges that Google acted unlawfully to maintain its position in search and search advertising on the internet, was joined by 11 states. "Absent a court order, Google will continue executing its anticompetitive strategy, crippling the competitive process, reducing consumer choice, and stifling innovation," the lawsuit states.

The government said Google has nearly 90% of all general search engine queries in the United States and almost 95% of searches on mobile.

Attorney General Bill Barr said his investigators had found Google does not compete on the quality of its search results but instead bought its success through payments to mobile phone makers and others.

“The end result is that no one can feasibly challenge Google’s dominance in search and search advertising,” Barr said.

When asked on a conference call if the department was seeking a breakup or another remedy, Ryan Shores, a Justice Department official, said, “Nothing is off the table, but a question of remedies is best addressed by the court after it’s had a chance to hear all the evidence.”

In its complaint, the Justice Department said that Americans were hurt by Google’s actions. In its “request for relief,” it said it was seeking “structural relief as needed to cure any anti-competitive harm.” “Structural relief” in antitrust matters generally means the sale of an asset.

“Ultimately it is consumers and advertisers that suffer from less choice, less innovation and less competitive advertising prices,” the lawsuit states. “So we are asking the court to break Google’s grip on search distribution so the competition and innovation can take hold.”

Google called the lawsuit “deeply flawed,” adding that people “use Google because they choose to - not because they’re forced to or because they can’t find alternatives.”

Investors seemed to shrug off news of the lawsuit, sending shares Alphabet up 1.9% to $1,563.51 on Tuesday afternoon.

“It’s like locking the proverbial door after the horse has bolted,” said Neil Campling, head of tech media and telecom research at Mirabaud Securities in London, who added Google has already invested billions of dollars in infrastructure, technologies and talent. “You can’t simply unwind a decade of significant progress.”

POLITICAL ELEMENT

Tuesday’s federal lawsuit marks a rare moment of agreement between the Trump administration and progressive Democrats. U.S. Senator Elizabeth Warren tweeted on Sept. 10, using the hash tag #BreakUpBigTech, that she wanted “swift, aggressive action.”

Still, coming just days before the U.S. presidential election, the filing’s timing could be seen as a political gesture since it fulfills a promise made by President Donald Trump to his supporters to hold certain companies to account for allegedly stifling conservative voices.

Republicans often complain that social media companies including Google take action to reduce the spread of conservative viewpoints on their platforms. Lawmakers have sought, without explaining how, to use antitrust laws to compel Big Tech to stop these alleged limitations.

The complaint pointed to the billions of dollars that Google pays to smartphone makers such as Apple Inc AAPL.O, Samsung and others to make Google's search engine the default on their devices.

This means that rival search engines never get the scale they need to improve their algorithms, and grow, the complaint said.

“General search services, search advertising, and general search text advertising require complex algorithms that are constantly learning which organic results and ads best respond to user queries,” the government said in its complaint. “By using distribution agreements to lock up scale for itself and deny it to others, Google unlawfully maintains its monopolies.”

Google has been successful at protecting its profit derived from the Android mobile operating system, which is officially open source but companies that change it are barred from lucrative revenue-sharing agreements.

Justice Department investigators found an internal Google analysis of restrictive agreements determined that just 1% of Google’s worldwide Android search revenue was at risk of being lost to competitors.

“This analysis noted that the growth in Google’s search advertising revenue from Android distribution was ‘driven by increased platform protection efforts and agreements,’” the complaint found.

OTHER CHALLENGES

The 11 states that joined the lawsuit all have Republican attorneys general.

More lawsuits could be in the offing since probes by state attorneys general into Google’s broader businesses are under way, as well as an investigation of its broader digital advertising businesses. Attorneys general led by Texas are expected to file a separate lawsuit focused on digital advertising as soon as November, while a group led by Colorado is contemplating a more expansive lawsuit against Google.

The lawsuit comes more than a year after the Justice Department and Federal Trade Commission began antitrust investigations into four big tech companies: Amazon.com Inc AMZN.O, Apple, Facebook Inc FB.O and Google.

Seven years ago, the FTC settled an antitrust probe into Google over alleged bias in its search function to favor its products, among other issues. The settlement came over the objections of some FTC staff attorneys.

Google has faced similar legal challenges overseas.

The European Union fined Google $1.7 billion in 2019 for stopping websites from using Google’s rivals to find advertisers, $2.6 billion in 2017 for favoring its own shopping business in search, and $4.9 billion in 2018 for blocking rivals on its wireless Android operating system.

Cathay Pacific to slash workforce, end Cathay Dragon brand due to pandemic

SYDNEY (Reuters) - Hong Kong’s Cathay Pacific Airways Ltd said on Wednesday it would slash 5,900 jobs and end its regional Cathay Dragon brand, joining peers in cutting costs as it grapples with a plunge in demand due to the coronavirus pandemic.

The airline would also seek changes in conditions in its contracts with cabin crew and pilots as part of a restructuring that would cost HK$2.2 billion ($283.9 million), it told the stock exchange.

Overall, it will cut 8,500 positions, or 24% of its normal headcount, but that includes 2,600 roles currently unfilled due to cost reduction initiatives, Cathay said.

“The global pandemic continues to have a devastating impact on aviation and the hard truth is we must fundamentally restructure the group to survive,” Cathay Chief Executive Augustus Tang said in a statement.

Cathay shares jumped almost 7% in early trade, with broker Jefferies saying the announcement removed a key overhang on the stock.

Singapore Airlines Ltd and Australia’s Qantas Airways Ltd have already announced similarly large payroll cuts, as the International Air Transport Association forecasts passenger traffic will not recover until 2024.

Cathay, which has stored around 40% of its fleet outside Hong Kong, said on Monday it planned to operate less than 50% of its pre-pandemic capacity in 2021.

After receiving a $5 billion rescue package led by the Hong Kong government in June, it had been conducting a strategic review that analysts expected would result in major job losses.

The airline said it was bleeding HK$1.5 billion to HK$2 billion of cash a month and the restructuring would stem the outflow by HK$500 million a month in 2021, with executive pay cuts continuing throughout next year.

BOCOM International analyst Luya You said she had expected more strategic insight from the airline on its fleet plans and route network as part of the restructuring.

“Had they revealed more on fleet planning for 2021-22, we would get a much better sense of their outlook,” she said.

The decision to end regional brand Cathay Dragon is in line with rival Singapore Airlines’ pre-pandemic move to fold regional brand Silkair into its main brand.

Cathay Dragon, once known as Dragonair, operated most of the group’s flights to and from mainland China and had been hit by falling demand before the pandemic due to widespread anti-government protests in Hong Kong that deterred mainland travellers.

Plans to end the brand earlier this year hit roadblocks from China’s aviation regulator because of infractions during last year’s pro-democracy protests, two sources told Reuters in May.

Cathay said the airline would cease operating immediately and it would seek regulatory approval to fold the majority of Cathay Dragon’s routes in Cathay Pacific and low-cost arm HK Express.

“Now that Cathay has decided on staff count and the elimination of the Dragon brand it knows the size of the airline and the structure going forward and can complete its new fleet and network plan,” said Brendan Sobie, an independent aviation analyst.

Like Singapore Airlines, Cathay lacks a domestic market to cushion it from the fall in international travel due to border closures.

In September, Cathay’s passenger numbers fell by 98.1% compared with a year earlier, though cargo carriage was down by a smaller 36.6%.

Cathay shares have fallen 43% since the start of January. In July, it reached agreement with Airbus SE to delay the delivery of A350s and A321neos and said it was in advanced talks with Boeing Co about deferring its 777-9 orders.

The airline’s share register is dominated by Swire Pacific Ltd, Air China Ltd, Qatar Airways and the Hong Kong government, with only a 12% free float.

($1 = 7.7500 Hong Kong dollars)

Netflix falls short on new subscribers as pandemic boost fizzles

(Reuters) - Netflix Inc NFLX.O on Tuesday posted its weakest subscriber gains in four years as streaming competition increased, pandemic restrictions eased and live sports returned to television.

The company added 2.2 million paid subscribers globally during the quarter that ended Sept. 30, missing Wall Street's target of 3.4 million and its own forecast. (Graphic: tmsnrt.rs/3jhdq7e)

Earnings per share also landed below analyst expectations at $1.74. The consensus forecast was $2.14, according to IBES data from Refinitiv.

Shares of Netflix, one of the biggest gainers this year as people stayed home amid the pandemic, dropped nearly 6% to $494 in after-hours trading on Tuesday.

“Domestic subscribers were nearly flat, which highlights Netflix’s saturation in the U.S.,” said Ross Benes, analyst with eMarketer. With domestic additions slowing, revenue growth will likely come from price increases, he said.

The company reported a blockbuster quarter at the start of the worldwide coronavirus pandemic, adding 15.8 million paying customers from January through March.

Netflix had warned investors that a sudden surge in new sign-ups would fade in the latter half of the year as COVID-19 restrictions eased. Netflix forecast in the fourth quarter it would bring in 6 million new subscribers around the globe, short of the 6.51 million that analysts expected.

The streaming video pioneer is trying to win new customers and fend off competition as viewers embrace online entertainment. During the third quarter, Netflix released “Emily in Paris”, “Enola Holmes” and “The Devil All the Time.”

Netflix acknowledged that competition was increasing as studios across Hollywood from Walt Disney Co DIS.N to AT&T Inc's T.N WarnerMedia have restructured to compete more directly for video subscribers.

“Competition for consumers’ time and engagement remains vibrant,” Netflix said in a letter to shareholders.

In recent months, major sports resumed play and nascent streaming services, including AT&T's HBO Max and Comcast Corp's CMCSA.O Peacock, offered audiences new options.

Netflix said its results reflected the fact that it saw such a big surge in customers early in the year.

“We continue to view quarter-to-quarter fluctuations in paid net adds as not that meaningful in the context of the long run adoption of internet entertainment, which we believe is still early and should provide us with many years of strong future growth as we continue to improve our service,” the company said.

Netflix officials noted the company had pulled in more subscribers in the first nine months of 2020 than in all of 2019. It ended the third quarter with 195.2 million global streaming customers.

“Next time we get together, we should be over 200 million members, completing a year of 34 million (additions),” an annual record, Co-Chief Executive Reed Hastings said in an analyst interview.

The company also said it expected to complete shooting over 150 productions by the end of the year and that it would release more original programming in each quarter of 2021 compared with 2020.

Revenue rose 22.7% to $6.44 billion in the third quarter, edging past estimates of $6.38 billion.

Net income rose to $790 million, or $1.74 per share, in the quarter from $665.2 million, or $1.47 per share, a year earlier.

Global Markets: Asian stocks gain on U.S. stimulus hope, yuan surges

TOKYO/NEW YORK (Reuters) - Asian shares and U.S. stock futures rose on Wednesday as renewed hopes for a new round of U.S. stimulus drew money into equities from government debt.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.56%. Australian stocks edged up by 0.1%, while shares in China rose 0.07%. Tokyo shares gained 0.4%.

U.S. stock futures also rose 0.44%.

The yuan surged to the strongest level against the dollar in more than two years on growing optimism about China’s economy and speculation that a victory for U.S. Democrat presidential candidate Joe Biden next month will lead to better Sino-U.S. ties.

Benchmark U.S. Treasury yields hit a four-month high and the yield curve steepened on expectations for more U.S. fiscal spending, but some investors remain cautious about the chances of a deal before the U.S. presidential election on Nov. 3.

“It will be quite a mixed day,” said Ryan Felsman, senior economist at CommSec. “People are digesting the potential for a stimulus bill, and markets are very cautious on the back of that.”

The White House and Democrats in the U.S. Congress moved closer to agreement on a new coronavirus relief package on Tuesday as President Donald Trump said he was willing to accept a large aid bill despite opposition from his own Republican Party.

Negotiations will continue on Wednesday, an aide to top U.S. Democrat Nancy Pelosi said.

On Wall Street, shares of Google parent company Alphabet rose despite an antitrust lawsuit against it by the U.S. Justice Department.

Netflix, however, reported disappointing earnings, leading its shares to fall 6% after trading hours.

The Dow Jones Industrial Average ended up 0.40% on Tuesday. The S&P 500 rose 0.47%, and the tech-heavy Nasdaq Composite rose 0.33%.

The onshore yuan jumped to 6.6602 per dollar, the strongest since July 2018. Yuan bulls have been encouraged by recent signs from the People’s Bank of China that it is more comfortable with currency appreciation.

The U.S. dollar hit a one-month low against a basket of major currencies as investors awaited the outcome of the fiscal stimulus talks and as coronavirus cases spiked in Europe.

Benchmark 10-year U.S. Treasury yields hit a four-month high of 0.8060% and the yield curve reached the steepest level in more than four months on hopes lawmakers could agree on a stimulus package.

Oil prices fell on Wednesday after a surprise climb in U.S. crude stockpiles added to concerns about a global supply glut.

Brent crude futures fell 0.56% to $42.92 a barrel while U.S. crude futures slipped by 0.55% to $42.92 per barrel.

Snap shares jump as user growth, revenue beat estimates

(Reuters) - Shares of Snap Inc SNAP.N rallied 23% on Tuesday after the Snapchat messaging app owner beat user growth and revenue forecasts as more people signed up to chat with friends and family during the coronavirus pandemic.

Daily active users (DAUs), a widely watched metric by investors and advertisers, rose 18% year-over-year to 249 million in the quarter ended Sept. 30, the company said in a statement. Analysts had expected 244 million, according to IBES data from Refinitiv.

The company said it expected continued momentum in user growth and forecast about 257 million daily active users in the fourth quarter, exceeding analysts’ current estimate of 249.81 million.

Revenue, mainly from selling ads on the app, jumped 52% to $679 million, widely beating analysts’ consensus estimate of $555.9 million.

Snap has positioned itself as a safe place for brands to advertise because it focuses on one-on-one messages which disappear once they are read.

That reputation served Snap well in the third quarter, when over 1,000 advertisers boycotted larger rival Facebook Inc FB.O for the month of July in response to issues of hate speech on the platform, and as popular short-form video app TikTok faced the possibility of a U.S. ban over national security concerns.

It opened an opportunity for Snap as companies reviewed their ad spending, and helped contribute to revenue growth, said Jeremi Gorman, Snap’s chief business officer, during an earnings call with analysts.

Snap has “unique ad offerings, such as augmented-reality advertising,” that helped its performance, said Debra Aho Williamson, an analyst at research firm eMarketer.

The app has been able to grow its user base outside the United States and Europe by partnering with local telecommunication providers and building features like photo filters and lenses that are locally relevant, Snap Chief Executive Evan Spiegel said during the earnings call.

Average revenue per user was $2.73, up 28% from the year-go quarter.

Snap’s net loss narrowed to $199.8 million, or 14 cents per share, from $227.37 million, or 16 cents per share, a year earlier.

Snap said current-quarter revenue could grow between 47% to 50% over the year-ago period, but cautioned that it was unclear how the pandemic would affect year-end holiday advertising.

Snap rose to $35.00 after closing 0.7% lower at $28.45.

Shares of Facebook, Twitter Inc TWTR.N and Pinterest Inc PINS.N also rose in after-hours trading.

Shale producer Pioneer Natural to buy rival Parsley for $4.5 billion in all-stock deal

HOUSTON (Reuters) - Pioneer Natural Resources Co said on Tuesday it would buy smaller rival Parsley Energy Inc in a deal valued at about $4.5 billion, the latest consolidation among U.S. shale producers slammed by the rout in oil prices during the pandemic.

Many shale companies have been mired in losses because of weak crude prices, hovering around $40 a barrel since June. But unlike in past downturns, companies have struggled to raise new capital to restructure heavy debts.

The all-stock deal would create the largest Permian Basin-only focused shale producer and is expected to add annual cost savings of $325 million. Pioneer shareholders will own about 76% of the combined company. refini.tv/3kmSrSc

Pioneer aims to increase cost savings and cash flow, positioning it as one of “a few investable independents,” Chief Executive Scott Sheffield said on an analyst call on Tuesday.

“There’s only going to be three or four survivors,” Sheffield said, naming his own company, ConocoPhillips , EOG Resources Inc and “maybe” Hess Corp as likely winners that could lure investor interest.

The deal is part of “a historic winnowing” of U.S.-based oil firms, said Andrew Dittmar, senior M&A analyst at Enverus.

“Shale companies are looking for ways to regain their market footing,” Dittmar said, adding: “Smaller companies don’t want to be left out in the cold.”

A combined company would pump about 328,000 barrels of oil per day. Neither company holds federal acreage, which is seen as riskier than state or private lands in case drilling rules change after the Nov. 3 U.S. presidential election.

One of Parsley’s founders in 2008 was now-Chairman Bryan Sheffield, the son of Scott Sheffield. Both Pioneer and Parsley have criticized widespread natural gas flaring in the Permian oil field, saying wasting the natural gas and emitting greenhouse gas methane give the industry a black eye.

On Monday, ConocoPhillips agreed to buy U.S. shale oil producer Concho Resources Inc for $9.7 billion. That followed Chevron Corp’s $4.2 billion purchase of Noble Energy, and Devon Energy Corp’s $2.6 billion all-stock buy of rival WPX Energy Inc.

Such deals have increased pressure on oil and gas producers to buy up smaller rivals.

Parsley CEO Matt Gallagher will join Pioneer’s board.

The deal is expected to close in the first quarter of 2021.

Amazon extends work from home option till June

(Reuters) - Amazon.com Inc AMZN.O on Tuesday told employees whose work can be done from home that they can do so until June, extending the timeline on a return to office due to the COVID-19 pandemic.

“Employees who work in a role that can effectively be done from home are welcome to do so until June 30, 2021”, an Amazon spokeswoman said in an emailed statement on Tuesday, adding the guidance is applicable globally.

Amazon had earlier allowed that option until January.

The development comes less than three weeks after the world’s largest online retailer said more than 19,000 of its U.S. frontline workers contracted the coronavirus this year.

Some staff, elected officials and unions in recent months have said that Amazon put employees’ health at risk by keeping warehouses open during the pandemic.

“We have invested significant funds and resources to keep those who choose to come to the office safe through physical distancing, deep cleaning, temperature checks, and by providing face coverings and hand sanitizer,” the Amazon spokeswoman said on Tuesday.

In May, Twitter Inc TWTR.N became the first major tech company to allow employees who can work remotely to do so indefinitely.

Other tech giants have extended the work from home option for their employees with Microsoft Corp MSFT.O saying earlier this month it will let most employees work remotely for up to half their weekly working hours.

Facebook Inc FB.O had said it would allow its employees to work from home till July next year, while Google GOOGL.O had extended the remote working period for employees who do not need to be in the office till June.

Invest Wisely!

Bulls n Bears 

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

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INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

Falgold

EGM

1st Floor, KPMG Building, 133 Josiah Tongogara Avenue, Bulawayo

29/10/2020 | 10:00 am

Afdis

AGM

virtual

13/11/2020 | 12:20pm

Zimbabwe

National Unity Day

Zimbabwe

22/12/2020

Christmas Day

25/12/2020

Boxing Day

26/12/2020

New Year’s Day

01/01/2021

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.bullszimbabwe.com>  www.bullszimbabwe.com Email:  <mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77 344 1674

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