Major International Business Headlines Brief::: 04 April 2024

Thu Apr 4 10:30:26 CAT 2024

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Major International Business Headlines Brief:::  04 April 2024 

ü  Africa: Developing Countries' Government Debt Crises Loom Larger

ü  Madagascar Villagers Sue Rio Tinto Over Lead Poisoning

ü  Kenya Airways Favours Major Airline for $1 Billion Stake Deal

ü  Namibia: Fuel Prices Go Up

ü  Nigerian Govt Announces Hike in Electricity Tariffs

ü  Africa: Addressing Regulatory Challenges to Advance Local Manufacturing in Africa

ü  Africa: Even Hands-Free, Phones and Their Apps Cause Dangerously Distracted Driving

ü  Amazon: Tech giant cuts hundreds of jobs in cloud computing unit

ü  Google looks to AI paywall option, claims report

ü  WhatsApp, Instagram and Facebook apps hit by outage

ü  Disney defeats critics after bruising battle

ü  Trump sues Truth Social co-founders over alleged mismanagement

ü  Food price fears as Brexit import charges revealed

 <https://www.cloverleaf.co.zw/> Africa: Developing Countries' Government Debt Crises Loom Larger

Developing countries are being blamed for having borrowed and spent irresponsibly. But they have only been doing what foreign powers and financial interests have urged them to do.

Since the 2008 global financial crisis, developing nations have been told to borrow massively from private finance, even at exorbitant interest rates, to scale funding up 'from billions to trillions'.

With progress towards sustainable development often in reverse, servicing external debt now blocks progress. Many governments have cut back spending in line with conditions or advice from powerful foreign economic agencies.

Current account tales

Many still believe all national economies should have trade or current account surpluses with others - typically citing Germany's and Japan's post-war booms. But of course, not all countries can have surpluses simultaneously.

If a country's trade and current account balances remain in deficit for long, its currency's purchasing power will often be under pressure to fall. Such is the case for developing countries, at least. The situation differs for countries such as the US, UK and Japan.

The 1944 Bretton Woods agreement created an 'exorbitant privilege' for the US by making the dollar the world reserve currency. This privilege survived the US refusal from August 1971 to honour its Bretton Woods obligations.

The US sells Treasury dollar bonds to the world but does not face the pressures others face to repay debts denominated in other currencies. Dollar liquidity thus meets international demand for USD. Federal government expenditure supplements private spending, with both eventually finding their way into private bank accounts.

Central banks of creditor nations have long bought low-risk US Treasury bonds. Indeed, current account surpluses make them net exporters of capital: they pay off external liabilities and make other payments abroad without incurring foreign debt.

By contrast, developing nations with chronic current account deficits are often obliged to go into debt, bearing the higher costs of accessing foreign-denominated finance.

Hence, developing countries are seen as 'creditors of safe assets' (US Treasury bonds) offering low returns but 'debtors of risky assets' promising higher returns.

Foreign capital's Pandora's box

Foreign capital is usually seen as necessary to supplement inadequate domestic investments. For example, much higher interest rates in developing countries may encourage borrowing and investment from abroad. However, heavy reliance on foreign finance is more problematic.

Servicing external debt drains foreign exchange resources, eventually causing national currencies to depreciate. Meeting foreign liabilities - including returns to foreign investments and external debt servicing - may require more foreign borrowings.

Reducing external debt by selling domestic assets to foreigners further denationalises post-colonial economies and diminishes national wealth. External liabilities over the medium-to-long term are likely to increase, with the repatriation of returns to foreign investments, both direct and portfolio.

If exchange rates are undervalued but stable - which is rarely the case - they can discourage imports and promote exports if rapid economic transformation is feasible. But some imports - e.g., food and medicines - are necessities, not easily replaced by domestically-made substitutes.

Macroeconomic stabiliser?

Credit to households and government deficits increase purchasing power, enabling spending, at least temporarily. When domestic productive capacities respond to such demand, national economic output grows.

When private credit and spending fell during the 2008 global financial crisis, government deficits revived many rich economies - averting more rapid economic contraction and allowing output to recover. Thus, more government and private spending and investment - using debt and earnings - spur growth.

Recessions have become less frequent and deep as fiscal deficits have increased in recent decades. Consistently counter-cyclical fiscal policy can thus reduce business cycles and stabilise growth and employment in rich nations.

With public debt and expenditure, economies would flourish more often. Government debt is less of an issue in rich countries: unlike developing economies, government debt is typically in the national currency, while interest rates are under central bank control.

Interest rate yoyo

Interest rates for government securities issued by prosperous economies were lowered after 2008. 'Unconventional monetary policies' - especially 'quantitative easing' - were widely adopted, defying orthodox monetary theory.

Such rates remained low until early 2022, when the Fed acted against the tight US labour market after three consecutive presidents - Obama, Trump, and Biden - sustained full employment after the 2008 global financial crisis and the ensuing Great Recession.

For two years, the US Fed and the European Central Bank have pushed up interest rates, fully aware that developing country governments have to borrow heavily on much more onerous terms.

While the US Fed has stopped raising interest rates, it refuses to lower them, while the ECB remains adamant about not doing so. Meanwhile, developing countries' central banks maintain high rates, fearing further haemorrhage abroad.

Fiscal austerity is increasingly demanded by developing countries close to government debt distress. Yet, fiscal austerity cannot possibly address external liabilities, debt, or otherwise. In other words, there is no analytical basis for the typical policy prescriptions for developing country governments facing external debt stress.

Dr Ndongo Samba Sylla is Africa Research and Policy Director for IDEAS, which organised an international conference on the African debt crisis in Accra, Ghana, on 27-29 March 2024.

- IPS.

Madagascar Villagers Sue Rio Tinto Over Lead Poisoning

Rural villagers living near mine in Madagascar take legal action against mining giant Rio Tinto after tests show dangerous levels of lead in their bodies

A group of rural villagers from Madagascar have launched a legal claim against the UK/Australian mining company Rio Tinto over claims pollution from a nearby mine has caused them to ingest dangerous levels of uranium and lead.

The 64 residents of the Anosy region in southern Madagascar say the QIT Minerals Madagascar (QMM) mine in Fort Dauphin, which is 80% owned by Rio Tinto, has contaminated surrounding lakes and waterways with the toxic metals. Up to 15,000 people in the area rely on these water sources for their drinking and domestic water supply.

Blood tests carried out on members of the communities in the area around Fort Dauphin have shown elevated levels of lead in their bodies that exceed World Health Organisation thresholds beyond which medical care is recommended. One individual has such high levels of lead that they require a medical process called chelation therapy to remove it from their bloodstream. The villagers cannot afford the medical care that they now need.

Lead is especially harmful to young children, causing permanent brain damage that can lead to a range of cognitive and behavioural disorders. Exposure to uranium can damage the body's development, particularly in children and pregnant women, as well as increasing cancer rates and damaging kidney function.

The QMM mine produces ilmenite, which is used to manufacture titanium dioxide, a white pigment used in paints, food, cosmetics, and other items. The mine extracts ilmenite from the sands along the edge of Lakes Besaroy and Ambavarano. Independent studies have shown that mine wastewater containing high levels of uranium and lead has been discharged into the surrounding environment.

Lawyers from the law firm  Leigh Day , who are bringing the legal claim on behalf of the residents, say their clients have suffered loss and damage as a result of the pollution caused by the mine's operations.

The villagers rely on local waterways for all of their domestic needs, such as drinking, washing clothes, fishing and cooking. They, and their families, regularly draw water from waterways that are alleged to becontaminated by the operations of the QMM mine

In a letter of claim sent to Rio Tinto's London HQ on Tuesday 2 April 2024, Leigh Day says that those people affected by the lead and uranium pollution now urgently need ongoing monitoring of the lead levels in their blood and medical care for high-risk groups such as children and women of child-bearing age.

Leigh Day is not revealing the identities of its clients at this stage because of the risk of reprisals. There have been concerns that people in the region have been afraid to speak out about issues such as water quality. In recent years there have been several protests during which people protesting against QMM were arrested and fined. There have also been claims more recently that  local residents were being coerced and intimidated  to enter into agreements with QMM.

Rio Tinto disputes the claims that the QMM mine has polluted water bodies in the area, citing evidence that the water contains low levels of uranium. The company says its water management systems ensure that QMM's activities do not increase the exposure of local communities to radiological hazards or other contaminants.

The Anosy region in southern Madagascar is one of the most ecologically diverse regions in the country, with a population of approximately 500,000 people. The south of Madagascar has particularly high rates of poverty, deepening food insecurity and water scarcity.

The residents are being represented by Leigh Day partner Paul Dowling, who expects the number of claimants to increase significantly as the legal action gets under way.

Leigh Day partner  Paul Dowling  said: 

"Whilst Rio Tinto extracts large profits from its mining operations in Madagascar, local families are being forced to consume water contaminated with harmful heavy metals. In bringing this case, our clients are seeking accountability and justice for the damage that has been caused to their local environment and their health. 

"Rio Tinto continues to make bold public commitments about safeguarding vital water sources and respecting the rights of those affected by its operations around the world. We trust the company will now stand behind those commitments and engage constructively with our clients' claims at an early stage to ensure these communities no longer have to rely on polluted water and can get the medical attention they need."

- Leigh Day.

Kenya Airways Favours Major Airline for $1 Billion Stake Deal

Kenya Airways is leaning towards favouring a major airline considering acquiring a stake in the Nairobi-based carrier, which could inject at least $1 billion into the company, according to knowledgeable sources.

Multiple global airlines boasting robust financial capabilities are eyeing a stake in Kenya's flagship carrier, which is racing against time to secure a new investor before year-end.

In 2022, during a meeting with Delta Airlines' management in the US, Kenya's President William Ruto signaled Kenya's willingness to divest its entire 48.9 percent stake in the national carrier. Delta Inc is the largest US carrier by market value.

Business Day Africa has learned that numerous investors other than airlines have also expressed interest in acquiring a stake in Kenya Airways, but the carrier showing a preference for a foreign airline.

"We have received a number of expressions of interest from several entities including airlines, but we mainly think that it would be an airline that will get preference," disclosed a source familiar with the matter.

This publication understands that Kenya Airways is seeking a financially robust foreign airline as a strategic investor in its national carrier, aiming to leverage expertise and reduce reliance on Treasury funding for operational needs.

The airline is seeking a minimum injection of $1 billion to extricate itself from negative equity, which currently plagues it. Its total liabilities swelled from Ksh108 billion in 2022 to Ksh136 billion, primarily attributed to persistent losses.

The airline plunged into insolvency in 2018 following an ambitious expansion drive that left it saddled with millions of dollars in debt.

With the Kenyan government owning a 48.9 percent stake and Air France-KLM holding 7.8 percent, private owners and bankers control the remaining shares.

To facilitate the recapitalisation effort, Kenya Airways has extended invitations to external investors, including current stakeholders interested in boosting their holdings.

Dubbed "Kifaru 2," this initiative aims to infuse fresh capital into the airline's operations. The airline has actively been working to restructure its balance sheet, leveraging recent improved performance, which included reporting a Ksh10.5 billion operating profit in 2023--its first in seven years.

- Business Day Africa.

Namibia: Fuel Prices Go Up

The price of petrol increased by N$1.52 per litre, while both diesel grades will increase by 72 cents per litre, effective Wednesday, the Ministry of Mines and Energy announced.

The ministry in a statement said that the price of petrol at the pump in Walvis Bay will be N$22.30, diesel 50 ppm will be priced at N$21.77, and diesel 10 ppm will cost N$21.9.

Fuel prices across the regions in the country will be adjusted accordingly, Ithindi added.

"Global oil prices are experiencing an upward trend due to a reduction in oil supply brought about by geopolitical tensions in major oil markets, fewer operational drilling rigs, and uncertainty surrounding oil production," he said.

Namibia, as an oil-importing country, is exposed to developments in international oil market prices, he added, noting that volatility in the supply and demand of fuel in global oil markets has a notable impact on local fuel prices.

- Namibia Economist.

Nigerian Govt Announces Hike in Electricity Tariffs

Mr Oseni said the new rate will be imposed only on consumers, who represent 15 per cent of the population but consume 40 per cent of the nation's electricity.

The Nigerian Electricity Regulatory Commission (NERC) has ordered the immediate upward review of electricity tariffs from Wednesday, 3 April.

The NERC Vice Chairman, Musiliu Oseni, disclosed this while speaking at a press conference in Abuja on Wednesday.

Mr Oseni explained that only electricity customers in band A would be affected by the increase.

He noted that the increase would not affect bands B, C, D and E while noting that the number of customers previously on band A has been downgraded.

Band A customers are offered an average daily electricity supply of 20 hours.

He said the new rate will be imposed only on consumers who represent 15 per cent of the population but consume 40 per cent of the nation's electricity.

Accordingly, he said power distribution companies (DisCos) will be allowed to raise electricity prices to N225 ($0.15) per kilowatt-hour from N68.

"We currently have 800 feeders that are categorised as Band A feeders, but upon reviewing those feeders' performance, the commission has now reduced it to under 500. This means that 17 per cent now qualify as Band A feeders. Those are the feeders that are currently meeting the average 20 hours average.

"So we have just 17 per cent of the total feeders of the distribution companies now qualify as Band A feeders. That is, when you look at where those feeders are critically, it is estimated that under 15 per cent of customers are currently connected to those feeders. So based on that, feeders are not meeting the 24-hour supply and have been asked to be downgraded immediately, with strict compliance and strong enforcement action," he said.

He added that the commission now sets its review for that application by the distribution companies and has decided that only the 17 per cent feeders, that is, the 15 per cent customers, will be affected by any increase that the commission will approve for this distribution company.

"And in that order, the commission has approved a rate review of N225 per kilowatt hour for just under 15 per cent of the customer population. So that means less than 15 per cent of the customers will be affected. The commission has issued an order which is titled April Supplementary Order taking effect from today," Mr Oseni said.

NERC had in January said the Nigerian government will pay as much as N1.6 trillion to subsidise electricity in the year 2024.

Unveiling a new electricity tariff plan payable by electricity consumers in the country at the time, the Chairperson of the NERC, Sanusi Garba, said the order states appropriate tariffs that consumers should pay for investors to recover their operating costs.

Mr Garba explained that the order contains the federal government's policy on ensuring that due to the cost-of-living crisis, consumers will not be made to pay higher than the previous rates.

"The order seeks that prices charged by DisCos are fair to customers and are sufficient to allow DisCos to fully recover the efficient cost of operation, including a reasonable return on the capital invested in the business in accordance with section 116 of the Electricity Act 2023," Mr Garba said.

He added that the tariff order contains the appropriate tariff that DisCos should be charging if they are to remain in business while noting that the rates are very clear.

Constraints

In February, the Nigerian government said it had become very difficult to sustain subsidies on electricity in the country.

Nigeria's Minister of Power, Adebayo Adelabu, who disclosed this at a press conference, explained that the indebtedness of the country's power sector to electricity-generating companies (GenCos) and the gas companies (GasCos) had risen to over N3 trillion.

"Today, we are owing a total of N1.3 trillion to the power generating companies, out of which 60 per cent is owed to gas suppliers. Today we have a legacy debt, prior to 2014, to the gas companies of $1.3 billion; at today's rate, that is close to N2 trillion.

"Now, if you add N2 trillion legacy debt owed to gas companies and the N1.3 trillion being owed to GenCos, we have an inherited debt of over N3 trillion in this sector. How will the sector move forward? Nigerians deserve the right to know this," Mr Adelabu said at the time.

Speaking on electricity subsidy, he said countries like Ghana, Togo, and Benin Republic pay much more than Nigeria for electricity while noting that the government might not be able to continue funding electricity subsidies.

"What we have made provision for in the 2024 budget for subsidy is N450 billion and we will require N2.9 trillion for subsidy. So can we afford it? We must be realistic. Can we afford it?" he noted.

On Monday, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced the establishment of the 2024 Domestic Base Price (DBP) and applicable wholesale price of natural gas for the strategic sectors.

Announcing the establishment of the 2024 DBP, the agency in a letter signed by its Chief Executive, Farouk Ahmed, set the gas-to-power (Power sector) base price to $2.42 per Million British Thermal Unit (MMBTU) and $2.92 MMBTU for the commercial sector.

In recent years, the power sector has experienced many challenges ranging from electricity policy enforcement to regulatory uncertainty, gas supply, transmission system constraints, and significant power sector planning shortfalls.

In November 2013, the federal government privatised all generation and 11 distribution companies, with the federal government retaining 100 per cent ownership of the transmission company. This was to improve efficiency in the sector.

Despite years of public investment, the country has the lowest access to electricity globally, with about 92 million persons out of the country's 200 million population lacking access to power, according to the Energy Progress Report 2022 released by Tracking SDG 7.

Similarly, millions of households have yet to be metered, despite repeated assurances by regulators and industry players over the years.

- Premium Times.

Africa: Addressing Regulatory Challenges to Advance Local Manufacturing in Africa

Local manufacturing and access to health products represent strategic pillars of the health and security agenda for the African continent. African leaders pledge to increase the share of vaccines, medicines, and diagnostics locally manufactured in Africa to 60% by 2040. This vision will be achieved by establishing a sustainable vaccine development and manufacturing ecosystem underpinned by research and development, intellectual property (IP) and technology transfer, robust regulatory systems, innovative and sustainable financing, strategic partnerships, and commitment by African and global procurement agencies to purchase vaccines produced on the continent.

Since the late 1980s, the World Health Organization (WHO) has provided a safety, quality, and efficacy assurance assessment process, now known as "WHO prequalification" (PQ), to ensure vaccines, medicines, diagnostics, and other health products supplied by procurement agencies meet acceptable standards and to facilitate the regulatory review and uptake of health products in Iow-resource settings.

In Africa, the slow process of WHO PQ was seen as one of the key limitations on the way to achieving the local manufacturing agenda. In this context, Africa CDC welcomes the new WHO policy to initiate parallel processes both for recommendation guidelines and PQ or Emergency Use Listing Procedure (EUL) assessment as an important step in addressing the inequity in rapidly accessing essential and innovative health products. The use of interim guidelines, especially for innovator products, will be useful in accelerating timelines. Nevertheless, they require significant efforts to address the high data and evidence standards, know how to produce a complete dossier for submission and interact with PQ's consultation processes.

One of the critical and intrinsic factors for sustainable manufacturing in Africa is ensuring that African manufacturers have access to efficient and harmonized regulatory pathways that ensure high-quality products and market access for African-made products. The acquisition of maturity level 3 (ML3) status in five (5) African countries, coupled with ongoing competency programs through Regional Centres for Regulatory Excellence (RCOREs), underscores the critical importance for African regulatory experts to possess expertise and capabilities that align with adequate regulatory oversight across the entire lifecycle of vaccine production.

Lengthy and fragmented processes to acquire regulatory approval will lead to late market access and financial and administrative burdens for African manufacturers. In addressing this, achieving WHO prequalification to enter the United Nations (UN) procurement system is particularly important for African manufacturers to reach the economics of scales necessary to foster a conducive manufacturing eco-system, including Research and Development. We encourage WHO to continue to support the strengthening of these important activities and engagement and communication across diverse stakeholder communities. Africa CDC will continue to monitor the progress and execution of these and similar recommendations for the benefits of local manufacturing of pharmaceutical products in Africa.

- Africa CDC.

Africa: Even Hands-Free, Phones and Their Apps Cause Dangerously Distracted Driving

Do you ever use your cellphone while driving? Don't feel too guilty about saying yes - nearly 60% of drivers admit to using their phone in hands-free mode while driving.

But don't become complacent either. Using your cellphone in hands-free mode while driving is not a perfectly safe activity, despite the impression you might be getting from laws, marketing messages and the behavior of people around you.

Fatal crashes caused by driver distraction have not gone down significantly over time: Distraction caused 14% of fatal crashes in 2017 and 13% of fatal crashes in 2021. Given that these numbers are calculated based on police-reported crashes, many experts believe the actual number of crashes caused by driver distraction is much higher. For example, real-world crash data from teens indicates that 58% of their crashes are due to driver distraction.

I am a human factors engineer who studies how drivers interact with technology. I see a gap between what people are told and what people should do when it comes to using your cellphone behind the wheel.

Hands-free calling

Most U.S. states ban hand-held cellphone use while driving but allow hands-free devices. However, hands-free devices are still distracting. Talking on a hands-free phone and driving is multitasking, and humans are not good at doing two cognitively demanding tasks at the same time.

For example, having a phone conversation in hands-free mode while driving causes you to stop looking out for hazards on the road and gets you into more close calls where you slam on the brakes than if you were not on the phone.

These detrimental effects last even after you end your call. There is a hangover effect: You can remain mentally distracted nearly 27 seconds after you finish using your cellphone. At 65 miles per hour, you've traveled nearly half a mile in 27 seconds.

Third-party apps

Third-party apps that connect your smartphone to your car's interface, such ass Apple CarPlay and Android Auto, encourage you to use your phone in hands-free mode while driving. You can control things like music, navigation, text messaging and phone calls using voice commands and the car's interface. IPhone users can connect their phones to more than 800 car models and Android phone users more than 500 models.

But is using these third-party apps while driving safe? Fifty-three percent of people say that if carmakers put the technology in vehicles, they must be safe. Though these third-party apps make cellphone use hands-free, they unintentionally cause you to look away from the road for dangerous amounts of time and they slow your reaction time.

Driving automation and distraction

Recent advances in technology have made driving a safer activity. Systems such as Cadillac Super Cruise and Tesla Autopilot control your steering and acceleration in limited situations, but they don't mean you can text at will. Though it's often lost in the marketing and enthusiasm for the systems, you are still required to pay attention to the road when you're using them.

Research has shown that drivers using Level 2 automation, which combines adaptive cruise control with lane centering, are more likely to take their eyes off the road. Research also shows that watching a video or doing anything distracting while using these systems is unsafe - you stop looking at the road, and when you need to respond, it takes more time.

Some systems work to keep you focused on driving by monitoring your eye or head position to make sure you're looking straight ahead. If your eyes are off the road for more than a few seconds, the systems alert you to bring your attention back to driving. This makes it difficult to get distracted by your phone.

Distracted driving awareness

April is Distracted Driving Awareness Month. Distracted driving - in hands-free mode, using a third-party app or when using driving automation - still claims thousands of lives each year in the U.S. Despite continual advances in vehicle technology, cellphone use while driving is likely to remain a challenging problem for the foreseeable future.

To discourage distracted driving, it's important to look back to see what's worked in the past to keep roads safe. Modifying the culture around distracted driving as well as comprehensive education, training and media campaigns, similar to "Click It or Ticket" to encourage seat belt use, are good examples of what works. To that end, on April 1, 2024, the National Highway Traffic Safety Administration launched the "Put the Phone Away or Pay" campaign to discourage distracted driving.

And for all of those who drive with children in the car, be sure to model safe behavior - they are watching and learning from you.

Amazon: Tech giant cuts hundreds of jobs in cloud computing unit

Technology giant Amazon has announced job cuts affecting hundreds of staff at its cloud computing business.

Amazon Web Services (AWS) has been growing and now represents 14% of Amazon's total revenue, according to its latest financial report.

The company has been shifting its strategy with physical stores, Amazon Fresh, which were launched in 2020.

On Tuesday, it said it would remove its self-checkout system called Just Walk Out from all the stores.

The firm said the latest job cuts impact several hundred roles in sales, marketing and global services and a few hundred roles in its physical stores technology team.

"These decisions are difficult but necessary as we continue to invest, hire, and optimize resources to deliver innovation for our customers", an AWS spokesperson told the BBC.

The firm also said "it will continue to hire and grow, especially in core areas of our business", adding that there are thousands of jobs available and it is working to find internal opportunities for employees whose roles are affected.

Amazon said the cuts will be at its operations around the world, though the majority of AWS roles are in its home city Seattle.

The company said US-based employees will receive pay and benefits for at least 60 days, help finding another job and access to transitional health benefits. They will also be eligible for a severance pay.

As of the end of last year Amazon had a total of more than 1.5 million full-time and part-time employees, excluding contractors and temporary personnel.

Amazon has been focusing on artificial intelligence (AI) through AWS, including investing in safety and research start-up, Anthropic, last month.

Technology giants, including Microsoft which has invested in ChatGPT, are competing to develop their AI capabilities.

In January, Amazon axed hundreds of jobs across its subsidiaries Twitch, Prime Video and MGM studios. More than 500 Twitch employees - a third of the streamer's workforce - were laid off.

According to US career consultancy Challenger, Gray & Christmas, the tech sector cut 168,032 jobs in 2023 - up 73% compared to 2022.-BBC

Google looks to AI paywall option, claims report

Google, the search engine used by more than a billion people around the world, is reported to be considering charging for premium content generated by artificial intelligence (AI).

The company, owned by Alphabet Inc, is said to be revamping its business model and looking at putting some of its core product behind a paywall.

It would be the first time Google had charged for any of its content.

Google said it did not have anything to announce "right now".

According to the Financial Times (FT) it is said to be looking at whether to add certain AI-powered search features to its premium subscription services which already offer access to its new AI assistant called Gemini, Google's version of the viral chatbot ChatGPT.

Executives have reportedly not yet made a decision when or whether to move ahead with the technology but the FT said engineers were developing the know-how needed to deploy the service.

Google's traditional search engine would remain free of charge but would continue to appear with ads alongside searched-for content, which subscribers would also see, the FT said.

Google has faced challenges coming to grips with the AI revolution - earlier this year Gemini, which can answer questions in text form but also generate pictures in response to text prompts, stoked controversy after it mistakenly created an image of the US Founding Fathers including a black man.

It also generated German soldiers from World War Two, incorrectly featuring a black man and an Asian woman.

Why Google's 'woke' AI problem won't be an easy fix

Google apologised and immediately "paused" the tool, saying it was "missing the mark".

However, the company is still number one for the majority of internet users when it comes to searching for information.

According to the global market research company Statista, Google has dominated the desktop search engine market since 2015 with a solid 80%+ of internet users. Various websites suggest it has more than a billion daily users.

The majority of Google's revenues are generated through advertising. Its parent company, Alphabet, is one of the biggest internet companies worldwide with a 2023 valuation of $1.6tn (£1.26tn), according to Statista.

But it has diversified and now offers mail, productivity tools, enterprise products and mobile devices, among other ventures, and in 2023 it earned revenues of approximately $305.6bn (£241bn)

In a statement issued to the BBC, Google said it was "not working on or considering an ad-free search experience".

"As we've done many times before, we'll continue to build new premium capabilities and services to enhance our subscription offerings across Google," the search giant said. "We don't have anything to announce right now."-BBC

WhatsApp, Instagram and Facebook apps hit by outage

WhatsApp, Facebook and Instagram all went down briefly on Wednesday during a major outage at parent company Meta.

Thousands of app users reported issues accessing the three sites late in the day, with people taking to other social media to air grievances.

Meta's status site later indicated that most issues had been resolved. The company has so far not responded to a request for comment.

Problems began around 18:00 GMT (14:00 EST) on Wednesday.

The UK site Downdetector, which monitors the performance of websites, indicated around 82,000 issues with WhatsApp at 18:25 but an hour later the issue appeared to have been largely resolved.

Users on Instagram reported around 3,700 outages at 18:20, with numbers persisting for a couple of hours.

Similarly, Facebook users advised of issues at the same time with 1,840 outages reported at 18:23.

The technical problem was not confined to the UK - Reuters news agency reported that about 5,000 people faced issues with Instagram in the United States. At its peak, around 24,000 WhatsApp users also experienced problems.

WhatsApp said in a post on the social media platform X, formerly Twitter: "We know some people are experiencing issues right now, we're working on getting things back to 100% for everyone as quickly as possible."

Nearly 3,500 users in India and more than 7,000 in Brazil also reported problems with the platform, according to Downdetector.

In March, hundreds of thousands of users of the social media company's Facebook and Instagram were impacted globally for more than two hours following an outage that was caused by a technical issue.

Meta has about 3.19 billion daily active users across its family of apps, which also includes Threads.-BBC

Disney defeats critics after bruising battle

Disney has won a boardroom battle against critics who had accused the media giant of botching its streaming strategy and losing its creative spark.

Activist investors, including Nelson Peltz of Trian Management, had sought seats on the company's board of directors, which they said was too close to Disney's leadership.

They pledged to push for priorities such as higher profits.

A majority of shareholders voted to maintain the company's current board.

At its shareholder meeting on Wednesday, Disney said its board nominees had been elected by a "substantial margin". Just 31% of votes cast supported Mr Peltz for a seat, according to a source familiar with the results.

But the hard-fought battle raised pointed questions about struggles at Disney's film and television business, and cast a shadow over the legacy of long-time leader Bob Iger.

"All we want is for Disney to get back to making great content and delighting consumers and for Disney to create sustainable long-term value for shareholders," Mr Peltz said at the shareholder meeting on Wednesday.

Mr Peltz is known for his fights with big companies such as fast food chain Wendy's and Procter & Gamble, maker of brands such as Pampers and Vick's.

He had criticised Disney for responding too slowly as pay television subscribers started to flee in 2015 and said big gambles, such as Mr Iger's decision to buy a hefty chunk of Rupert Murdoch's media empire in 2019, had not paid off.

Trian and another firm, Blackwells Capital, said the board had overpaid executives and bungled its responsibility to pick a new chief executive.

They also called for a review of Disney's studio operations, noting a streak of films that have disappointed at the box office.

Wish lacks Disney’s usual magic, say critics

The debate coincided with pressure Disney has been under from right-wing activists, who have accused the firm of "going woke".

Concern about how Disney is handling culture wars issues prompted several questions from shareholders at Wednesday's meeting, where separate shareholder proposals focused on Disney's political and charitable donations and its policies for trans employees were also defeated.

Disney had urged shareholders to vote against those proposals and to back the current board. It said new faces threatened to disrupt progress that the company has been making.

"As we gather today, we stand on a far more solid foundation," Mr Iger said in remarks at the meeting after the results were announced. "We have turned the corner and entered a new positive era for the Walt Disney company."

Mr Iger had retired as chief executive in 2020, but Disney's board abruptly re-installed him as boss in 2022, ousting his successor amid complaints about the company's streaming business and other issues.

Soon after his return Mr Iger announced a reorganisation and thousands of job cuts in a bid to improve the company's profits. He is now planning to step aside at the end of 2026.

"With the distracting proxy contest now behind us, we're eager to focus 100% of our attention on our most important priorities: growth and value creation for our shareholders and creative excellence for our consumers," Mr Iger said in a statement after the victory.

The investor battle was costly for both sides.

Trian estimated it would spend $25m million trying to win over shareholders, blitzing social media platforms with adverts aimed at everyday investors, while Disney claimed a spend of up to $40m.

Mr Iger won out - gaining support from major shareholders including Star Wars creator George Lucas, the widow of Steve Jobs, Laurene Powell Jobs, and members of the Disney family.

In a statement after the result Mr Peltz, whose efforts won a last-minute nod from Elon Musk, said he was disappointed by the outcome but "proud" of his campaign's impact.-BBC

Trump sues Truth Social co-founders over alleged mismanagement

Donald Trump is suing two co-founders of Trump Media, claiming they should lose their shares of the company for mismanaging his social media site.

The men, Wes Moss and Andy Litinsky, had already filed a suit against Mr Trump in February to prevent him from reducing their 8.6% stake in the firm.

They pitched the idea of Truth Social following the Capitol riot, after Mr Trump was banned from Twitter, now X.

Their shares are currently valued at around $600m (£477m).

Both co-founders met Mr Trump as contestants on NBC's The Apprentice reality show.

In the lawsuit, filed on 24 March in Florida state court, lawyers for the former president say Mr Moss and Mr Litinsky were in charge of Trump Media & Technology Group's daily operations, but "failed spectacularly at every turn".

Trump Media & Technology Group (TMTG) is the parent company of Truth Social.

"They made a series of reckless and wasteful decisions at a critical time that caused significant damage to TMTG and a decline in the stock price of its merger partner," Mr Trump's lawyers wrote in the filing.

Mr Trump's lawyers claim the two executives in particular slowed down the process of taking Trump Media public, including by finding an appropriate merger company.

TMTG went public last week through a merger with a special purpose acquisition company, or SPAC.

Will Truth Social solve Trump's money problems?

Mr Moss and Mr Litinsky were not immediately available for comment.

In their February lawsuit, Mr Moss and Mr Litinsky claimed the former president was trying to reduce their stake in the firm by increasing the company's total number of shares from 120 million to 1 billion.

Mr Trump founded TMTG in 2021 after he was kicked off of major social media platforms over his actions during the 6 January Capitol riot.

Mr Moss and Mr Litinsky suggested Truth Social as an alternative to mainstream social media sites. They later agreed to a deal in which Mr Trump would own 90% of the platform when it was a private company.

Shares in Truth Social skyrocketed last week - surging as high as $79 (£63) - after Trump Media went public despite the business facing government investigations and other hurdles in its merger deal.

The stock price has since fallen considerably.-BBC

Food price fears as Brexit import charges revealed

The government has revealed how much companies will have to pay to import foods from the EU due to Brexit.

Small imports of products such as fish, salami, sausage, cheese and yoghurt will be subject to fees of up to £145 from 30 April, according to the Department for Environment, Food and Rural Affairs (DEFRA).

The Cold Chain Federation said the new charges would hit food prices.

The government said the fees would pay for "world-class border facilities".

The fee, known as the "common user charge", will apply to animal products, plants and plant products entering the UK from the EU through the Port of Dover and the Eurotunnel at Folkestone.

It will be charged per type of good imported - the "commodity line" - and capped at £145 for mixed consignments. Individual products will face charges of up to £29. It will apply to goods deemed low, medium and high risk.

The Cold Chain Federation's chief executive Phil Pluck said the fee would have to be passed on to "either the EU importer, the smaller UK retailer, or the UK consumer".

"Ultimately, this will increase business costs and food prices and potentially lower choices for the shopper," he said.

He added that the government had "announced the charges at the last minute, leaving affected businesses little time to revise their commercial arrangements".

The fee has been introduced to pay for border inspections and fund new facilities in Kent to protect biosecurity - preventing the import of plant and animal disease.

But the Horticultural Trades Association (HTA) said the policy felt like it was "constructed on the back of an envelope at best" and would "undoubtedly increase costs, potentially reduce consumer choice, and increase the likelihood of empty shelves".

"Our sector typically has multiple commodity lines per consignment, meaning, in reality, businesses in our sector will be paying the £145 maximum charge," said James Barnes, the HTA chairman.

Horticultural consignments can include plants, seeds, bulbs and cut flowers, he said.

The government has delayed implementing the changes five times, partly to give business time to prepare and to reduce disruption to supply chains.

Post-Brexit controls on food and farm imports start

The new border checks will be phased in gradually over the next 12 months but physical checks have been flagged as starting on 30 April for some time. However, the cost associated with those checks had not been revealed until now.

Prior to Brexit, trade between the EU and the UK was free flowing and frictionless.

But following the UK's departure from the trading bloc, this changed as a result of the relatively distant approach to EU relations adopted by the UK government.

Labour said British shoppers and businesses were "rightly worried about prices being driven up again" and that it had warned about the "potential for chaos" from new border checks.

Shadow minister Nick Thomas-Symonds said: "With less than a month before their introduction, we now know what the costs will be.

"Labour has a plan to reduce costly bureaucracy, through seeking to negotiate a veterinary agreement with the EU to massively reduce the need for checks, helping make food cheaper and our businesses more competitive."

In a statement the government said the flat-rate charge was at the "bottom end of the range which we consulted with industry on".

It said the charge was designed to "recover the costs of operating our world-class border facilities where essential biosecurity checks will protect our food supply, farmers and environment against costly disease outbreaks entering the UK through the short straits".

A spokesperson said: "The charges follow extensive consultation with industry and a cap has been set specifically to help smaller businesses. We are committed to supporting businesses of all sizes and across all sectors as they adapt to new border checks and maintaining the smooth flow of imported goods."-BBC

 Invest Wisely!

Bulls n Bears 

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INVESTORS DIARY 2024

Company

Event

Venue

Date & Time

Independence Day

April 18

Workers day

1 May

Companies under Cautionary

CBZH

GetBucks

EcoCash

Padenga

Econet

RTG

Fidelity

TSL

FMHL

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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 s 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 d from third parties.

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