Bizness Lounge: May 2015

Friday 29 May 2015

U.S. dealmaking at record year-to-date high

LONDON

Dealmaking in the United States has made its strongest start to a year since Reuters records began in 1980, climbing 52 percent year on year to $746.9 billion in the Jan. 1 to May 28 period. Merger and acquisition (M&A) activity was boosted this week when Charter Communications (CHTR.O) said it would acquire larger rival Time Warner Cable (TWC.N) for $56 billion and Avago Technologies (AVGO.O) agreed to buy rival chipmaker Broadcom Corp (BRCM.O) for $37 billion.
The Time Warner deal also propelled cable M&A up 42 percent year on year to $97.2 billion.
Morgan Stanley (MS.N), which advised Time Warner Cable on its second approach from Charter Communications, along with Citi (C.N), Allen & Co and Centerview, tops the list of U.S. M&A advisers.
Global M&A activity is up 35 percent from the

Intel nears $15 billion deal to buy Altera: NY Post

Intel Corp (INTC.O) is close to a deal to buy smaller chip maker Altera Corp (ALTR.O) for about $15 billion, the New York Post reported.The deal price could be as much as $54 a share, a 15 percent premium over Altera's Thursday closing price of $46.97, the New York Post reported, citing a source close to the situation. (bit.ly/1Fk3FL4)
"A deal is likely by the end of next week," the newspaper quoted the source as saying. The source also cautioned that the talks could still fall apart.
Intel signed a standstill agreement earlier this year with

Traders work shortly after the opening bell on the floor of the New York Stock Exchange May 21, 2015. REUTERS/Lucas Jackson

U.S. stocks opened marginally lower on Friday after data showed that the economy contracted slightly less than expected in the first quarter.The Dow Jones industrial average .DJI fell 13.95 points, or 0.08 percent, to 18,112.17, the S&P 500 .SPX lost 0.96 points, or 0.05 percent, to 2,119.83 and the Nasdaq Composite .IXIC dropped 0.30 points, or 0.01 percent, to 5,097.67.

Equinix to buy Telecity Group for $3.6 billion, Interxion deal collapses

LONDON

U.S. data center company Equinix Inc (EQIX.O) said on Friday it had agreed to buy British peer Telecity Group (TCY.L) in a deal worth 2.35 billion pounds ($3.6 billion) which ends Telecity's pursuit of smaller Dutch firm Interxion Holding NV (INXN.N).Telecity, which runs some of the huge computer centers which process traffic on the Internet, said in a statement its board had recommended Equinix's offer, and as such it was terminating an all-stock deal to buy Interxion for $2.2 billion.
The acquisition of Telecity by Equinix, a deal which Reuters reported was near to finalization on Thursday, would create the largest data center player in Europe.
Underpinning deal activity in the sector is the players' plans to tap growing demand across new geographies for "cloud" technology, whereby the data and processing for devices like smartphones is carried out on millions of remote servers.
Equinix said the approximate 1,145 pence per

Dollar, Chinese shares steady as Europe wobbles

LONDON | By Patrick Graham

A money changer counts U.S. dollar bills at a currency exchange office in central Istanbul April 15, 2015.

Reuters/Murad Sezer

The dollar inched higher on Friday, putting it on track for a monthly rise in May, while Chinese shares steadied after a plunge a day earlier that stoked concerns about the financial health of the world's second largest economy.European stock markets .FTEU3 were down by up to half a percent, with dealers pointing to doubts over Greece's ability to make good on a promise to reach a cash-for-reforms deal with its euro zone partners by Sunday.
U.S. markets were also set to open a touch lower 1YMc1 ESc1, with a second estimate of first quarter economic output expected to show the economy contracted by 0.8 percent rather than growing 0.2 percent. ECONUS
That darkening of the economic picture has been at

U.S. economy contracts in first quarter; dollar hits corporate profits

WASHINGTON | By Lucia Mutikani

The U.S. economy contracted in the first quarter as it buckled under the weight of unusually heavy snowfalls, a resurgent dollar and disruptions at West Coast ports, but activity has rebounded modestly.The government on Friday slashed its gross domestic product estimate to show GDP shrinking at a 0.7 percent annual rate instead of the 0.2 percent growth pace it estimated last month.
A larger trade deficit and a smaller accumulation of inventories by businesses than previously thought accounted for much of the downward revision. There was also a modest downward revision to consumer spending.
With growth estimates so far for the second quarter around 2 percent, the economy appears poised for its worst first-half performance since 2011.
Economists, however, caution against reading too much into the slump in output. They argue the GDP figure for the first quarter was held down by a confluence of temporary factors, including a problem with the model the government uses to

Nigeria fuel shortages hit MTN, Guaranty Trust bank

Reuters

Severe fuel shortages in Nigeria hit the services of Africa's largest mobile telecoms operator, MTN, on Monday.

Severe fuel shortages in Nigeria hit the services of Africa's largest mobile telecoms operator, MTN, on Monday and forced Guaranty Trust Bank to close its branches nationwide at lunchtime, the companies said.
"Services are already degraded and some of our customers are already feeling the impact," Funmilayo Onajide, a spokeswoman for South Africa-based MTN, said.
Africa's biggest crude producer subsidises gasoline heavily and depends on imports for the bulk of its domestic fuel due to inadequate refineries.
The gasoline importers say they are owed money from

Africa's GDP growth seen at pre-economic crisis levels: AfDB

Reuters

Africa's GDP growth seen at pre-economic crisis levels: AfDB. PHOTOS: starrfmonline.

African economies will grow 4.5 per cent this year and five per cent in 2016 due to rising demand for exports, the highest levels since the global economic crisis took hold in 2007, the African Development Bank (AfDB) said.
Financial inflows will increase nearly 7 percent to 193 billion dollars, supported by higher foreign direct investment and a spike in portfolio investments, the bank said in its annual African Economic Outlook report.
The AfDB estimates African economies to have grown by 3.9 per cent in 2014. In the years prior to the economic crisis, African economic growth averaged between 5-7 percent.
Improving economic prospects worldwide will

Nigerian military says killed scores of Boko Haram militants, rescued 20 women and children

Reuters

Nigerian military says killed scores of Boko Haram militants, rescued 20 women and children. PHOTOS: forums.vwvortex.com

Nigeria's armed forces killed scores of Boko Haram militants and rescued 20 women and children as part of an operation in the Sambisa forest, the group's remaining hideout in the northeast of Africa's most populous nation, the military said on Saturday.
In a statement, military spokesman Major General Chris Olukolade said one soldier was killed in a landmine explosion during Friday's operation and around 10 others were injured.
(READ MORE: Boko Haram kills two soldiers in Cameroon: sources)
Thousands have been killed in the Islamist group's six-year insurgency that at its height saw the insurgents control an area the size of Belgium in

Greenstone IPO at $783 mln set to Australia's biggest for year so far

Reuters

Greenstone IPO at $783 mln set to Australia's biggest for year so far.

South African-owned insurer Hollard Group plans to raise nearly one billion Australian dollars ($783 million) by listing its Australian unit Greenstone Pty Ltd, a source working on the sale told Reuters, in what is set to be Australia's biggest initial public offering for the year to date.
The listing will be closely watched by capital markets participants anxious to gauge the strength of an IPO market that has, after a record year in 2014, cooled substantially due to concerns about sluggish economies around the world.
About 58 per cent of Greenstone or 398 million shares will be sold for between A$2.00 and A$2.50 per share, said the source, adding that a prospectus was filed with Australian authorities on Monday.
At the top end of the range, Greenstone, which sells life and pet insurance, would have a market value of A$1.7 billion. The source declined to be identified as the offer details had not been formally disclosed.
The listing is slated for June 16.
The deal is likely to top the A$834 million raised by

Illovo Sugar's FY earnings not so sweet

Reuters

Illovo Sugar said its full-year profit fell 8 per cent due to softer global prices.

Illovo Sugar Ltd, Africa's biggest producer of the sweetener, said on Monday its full-year profit fell 8 per cent due to softer global prices and lower output at its South African operations.
Headline earnings per share for the year to March fell to 179 cents from 194 cents a year earlier.
Headline EPS is the main profit measure in South Africa that strips out certain one-off items.
Lower export prices to key regions such as the European Union were worsened by the weakening of the euro and the Brazilian real.
Tough global markets were offset by stronger demand in South Africa and Tanzania after the governments there took import protection steps against cheap and illegal sugar, it said.
Sugar production fell 1.76 million tons in the year from the previous year's 1.83 million tons due to the drought and winter frost in Illovo's home operations.
Illovo, which also operates in Malawi, Swaziland, Mozambique, Zambia and Tanzania, said it expected a medium-term price recovery from

ISIS Nuclear Weapon? Islamic State Claims It Can Buy Nukes From Pakistan Within A Year In Dabiq Propaganda Magazine

The Islamic State group claims it could buy a nuclear weapon through Pakistan within the coming year in the latest issue of its propaganda magazine Dabiq. Above, an Islamic State sign is seen in the Iraqi city of Mosul July 21, 2014. Reuters/Stringer

The Islamic State group claims its financial fortunes are flourishing to the point that it is in a position to obtain a nuclear bomb within the coming year, according to the latest issue of the extremist group’s online propaganda magazine Dabiq. An article purportedly authored by British captive John Cantlie conceded the scenario is a “far-fetched” one, but that the militant group could actually obtain a nuclear device through Pakistan.

“Let me throw a hypothetical operation onto the table,” the Independent quoted the article as saying. “The Islamic State has billions of dollars in the bank, so they call on their wilayah in Pakistan to purchase a nuclear device through weapons dealers with

Ehud Olmert, the former Israeli prime minister, was handed down an eight-month jail term on May 25, 2015, for unlawfully accepting bribes from an American supporter. In this photo, Olmert is seen giving a statement to the media in Tel Aviv on April 15, 2010. Reuters/Nir Elias

Former Israeli prime minister Ehud Olmert was handed down an eight-month jail term on Monday for accepting cash bribes from an American supporter, reports said. Olmert was convicted of corruption in March and also faces a six-year jail term in a separate corruption case.
Olmert, who was granted a 45-day stay on his sentence, was also given a suspended sentence of an additional eight months, along with a fine of $25,000, the Associated Press reported. His lawyers said they would appeal the sentence in the country's supreme court. The prosecution had asked that Olmert be sentenced to at least one year in prison, for

Auto rickshaws wait in front of the head office of State Bank of India (SBI) in New Delhi on Aug. 12, 2013. Reuters/Anindito Mukherjee

A recovery in India's credit growth could elude the country's banks until early 2016, despite an economy that in the first three months of this year is expected to have outpaced China.
A 12.6 percent growth rate in lending in the fiscal year that ended on March 31 was the lowest in almost two decades, and would have been lower but for a surge in the last two weeks. In the two weeks to May 1, it slowed to 10.5 percent.
Reporting earnings for the quarter ending in March, India's top bankers said they had seen an increased level of inquiries from firms and individuals. But there was no substantial rise in loans, meaning a full recovery could still be months away, as

Turkey's Foreign Minister Mevlut Cavusoglu holds a news conference with U.S. Secretary of State John Kerry (not pictured) before meetings at the State Department in Washington April 21, 2015. Reuters/Gary Cameron

Turkey and the United States have reached a “principle agreement” to provide air support for some Syrian rebel forces, in a move that could signal growing involvement from Washington in the conflict, a Turkish official said.

Turkish Foreign Minister Mevlut Cavusoglu told the Daily Sabah on Monday that up to 15,000 moderate Syrian opposition forces that are currently being equipped and trained in Turkey would be provided further support in Syria.

"They have to be supported via air. If you do not protect them or provide air support, what is the point?," Cavusoglu told the newspaper. "There is a

Eyeing the next frontier, Miami law firms ramp up Cuba strategy

MIAMI | By David Adams

The Florida Bar is sending its first ever delegation of lawyers to Cuba this week to explore emerging new business opportunities as prospects heat up for closer political and commercial relations between the United States and the Communist-run island.Some big law firms with Miami offices, often staffed by Cuban-American exiles, are already beefing up their Cuba-related practices in response to queries from U.S. companies on issues ranging from telecommunications to banking, amid signs the longstanding U.S. trade embargo on Cuba is eroding.
Pedro Freyre, a Cuban-born attorney who heads the international practice at Akerman, said his phones started ringing within minutes of the December announcement by U.S. President Barack Obama and Cuban President Raul Castro that they had agreed to reestablish diplomatic ties severed some 54 years ago, and to work toward normalizing relations.
"These are exciting times," said Freyre. "Our U.S. clients, some who are Fortune 100 companies, want to know can foreigners own land in Cuba ... what is the power and water supply like, what are the work force rules?"
Since the December agreement, the two

Daimler and Qualcomm to develop in-car tech, wireless charging

FRANKFURT

Carmaker Daimler on Saturday announced a partnership with mobile technologies company Qualcomm Inc. to explore wireless recharging of mobile phones in cars as well as recharging of electric cars without cables.The move forms part of a broader push by Daimler, parent company of Mercedes-Benz, as well as rival German carmakers BMW and Audi to build their expertise in software and telecommunications to bolster their status as high-tech carmakers in an era when tightening emission rules force them to downsize engines, once a mainstay of profit.
In a joint statement, Daimler and Qualcomm said they were assessing the application of wireless technology to charge their electric vehicles (EV) and plug-in hybrid EVs without ever having to plug them in.
The companies are also exploring technologies that will enable customers to wirelessly charge devices such as mobile phones while driving in

Daimler teams up with China's Baidu in connected cars drive

FRANKFURT

German carmaker Daimler is to make software from web services company Baidu available in its Chinese Mercedes-Benz cars as part of a trend of deepening ties between carmakers and consumer technology companies.Carmakers are seeking to extend information and entertainment services available in vehicles, as well as smartphone compatibility, in an era of increasingly congested traffic.
Daimler and Chinese tech giant Baidu announced their tie-up on Monday at consumer electronics show CES in Shanghai.
The Mercedes-Benz cars will include Baidu software that allows users to access content from their smartphones via their dashboards, such as music and Internet services.
The companies did not say when the first cars

Economists cut Brazil's 2015 growth view, raise inflation forecast

BRASILIA

Brazil's economy will probably shrink more than previously expected and will face higher inflation this year, according to a weekly central bank poll of economists on Monday.The median forecast of about 100 economists surveyed projected an economic contraction of 1.24 percent in 2015, compared with 1.20 percent in the prior week's survey. Inflation is expected to end this year at an above-target 8.37 percent, up from 8.31 percent previously

Iran says OPEC unlikely to change output ceiling: Mehr news agency

DUBAI

OPEC is unlikely to change its production ceiling when the group meets in June, Iran's Oil Minister Bijan Zanganeh said on Sunday, according to the semi-official Mehr news agency."Lowering OPEC's production ceiling requires consensus between all members ... under current conditions it seems unlikely that the OPEC production ceiling will change," Zanganeh was quoted as saying.
Last month, Zanganeh said the producing group should cut its target daily crude production by at least 5 percent, or approximately 1.5 million barrels per day.
The Organization of the Petroleum Exporting Countries will meet on June 5. At its last meeting in November, OPEC, led by oil kingpin Saudi Arabia, decided against cutting output to defend its market share, resisting calls by some members such

Greece says wants to make debt payments but needs aid urgently

ATHENS | By Renee Maltezou

Greece intends to make good on its debt obligations but needs aid urgently to be able to do so, the government said on Monday, after several senior officials insisted Athens had no money to pay a loan installment falling due next week. Shut out of bond markets and with bailout aid locked, Greece is running out of cash to pay its bills. It must repay four loans totaling 1.6 billion euros to the International Monetary Fund next month, starting with a 300 million euro payment on June 5 that is seen as the next crunch point for state coffers.
Athens has the money to make monthly wage and pension payments this week, government spokesman Gabriel Sakellaridis told a news conference. But he was less direct when asked about the June 5 payment, reiterating the government's official stance

Oil prices edge down as dollar strengthens

LONDON | By Himanshu Ojha

Crude oil futures edged lower toward $65 a barrel as the dollar strengthened on Monday, with a public holiday in the United States and much of Europe keeping trading muted.Front-month Brent crude shed 17 cents to $65.20 a barrel by 1052 GMT. U.S. crude was down 35 cents at $59.37 a barrel.
The dollar pared early gains but remained near to two month-highs against the euro and yen as well as a one-month high against a basket of currencies.
A strong dollar makes crude oil less attractive for holders of other currencies.
"The overall fundamentals still point to a well-supplied market, a fact that should continue to put a ceiling on prices," Barclays said.
However, the market drew support from strong demand figures across Asia and the United States.
"Global oil demand continues to surprise to the upside, with April data showing no signs of slowdown despite a pick-up in prices," Energy Aspects said in a note.
Japan's customs-cleared crude oil imports rose 9.1 percent year on year to 3.62 million barrels per day (17.28 million kilolitres) in April, the Ministry of Finance said on Monday.
In China, crude imports hit a record 7.4 million barrels per day (bpd) in April, with healthy car sales countering a slowing economy.
In the United States, the peak summer driving

Comedian Anne Meara, mother of actor Ben Stiller, dies at 85

New York-born actress and comedian Anne Meara, known for her opposites-attract comedy routine with husband Jerry Stiller, died over the weekend, her family said on Sunday. She was 85.Meara, the mother of actor Ben Stiller, died on Saturday, her family said in a statement through a representative, but provided no details about the circumstances of her death.
"She is survived by her husband and partner in life Jerry Stiller," the statement said. "The two were married for 61 years and worked together almost as long."
Meara was born on Sept. 20, 1929 and started her career in so-called summer stock theater. In 1954 she joined the cast of short-lived NBC soap opera The Greatest Gift, according to a profile on MTV.com.
Meara and Stiller, who met in 1953 at an agent's office and married a few months later, worked together in the Compass Players comedy troupe, a precursor to

Alibaba's latest gambit in fighting fakes: foster local brands

PUTIAN, China | By John Ruwitch

An employee works at a Shuangwei factory in Putian, Fujian province, China, May 14, 2015.

Reuters/John Ruwitch

Criticized and even sued by luxury brand Gucci and others for facilitating the counterfeit goods trade, Chinese e-commerce giant Alibaba Group Holding Ltd has been quietly piloting a scheme to try to curb fakes at source.In the coastal city of Putian, in Fujian province, Alibaba is working with 17 shoe manufacturers to cultivate home-grown brands online, revitalize a flagging industry and offer would-be counterfeiters an alternative source of livelihood.
Critics say the scheme is misguided and Alibaba should instead focus on scrubbing its online marketplaces of widespread listings of fakes.
But the "Made in China" plan speaks to what proponents say is one of the reasons why there's been only limited progress in the battle against fake goods in China: a lack of attractive alternatives for those making and hawking goods that infringe on others' intellectual property rights.
"You can crack down forever and never see

John Nash, mathematician who inspired 'A Beautiful Mind,' killed in car crash

Mathematician John Nash, a Nobel Prize winner whose longtime struggle with mental illness inspired the movie "A Beautiful Mind", was killed in a car crash along with his wife in New Jersey, state police said on Sunday.The couple were in a taxi when the driver lost control, crashed into a guard rail and hit another car on Saturday afternoon on the New Jersey Turnpike, said police.
Nash, 86, and his wife, Alicia, 82, were thrown from the taxi and pronounced dead at the scene, New Jersey State Police spokesman Sgt. Gregory Williams added, declining to comment on media reports that they were not wearing seat belts.
Russell Crowe, who portrayed Nash in the Oscar-winning movie, said on Twitter that he was stunned by the deaths. "An amazing partnership. Beautiful minds, beautiful hearts," the Hollywood star wrote.
The taxi driver was taken to hospital with

China lodges complaint with U.S. over spy plane flight

BEIJING

China said it had lodged a complaint with the United States over a U.S. spy plane that flew over parts of the disputed South China Sea in a diplomatic row that has fuelled tension between the world's two largest economies.Friction in the region has grown over China's land reclamation in the Spratly islands. China last week said it was "strongly dissatisfied" after a U.S. spy plane flew over areas near the reefs, with both sides accusing each other of stoking instability.
Chinese Foreign Ministry spokeswoman Hua Chunying said on Monday China had lodged a complaint and that it opposed "provocative behaviour" by the United States.
"We urge the U.S. to correct its error, remain rational and stop all irresponsible words and deeds," she said. "Freedom of navigation and

European shares dip, dollar gains after Yellen comments

TOKYO | By Lisa Twaronite

Traders work at their screens at the stock exchange in Frankfurt January 23, 2015. European shares rose in early trade on Friday, gaining ground for the seventh consecutive session, as investors cheered the European Central Bank's decision to buy government bonds.

Reuters/Pawel Kopczynski

European shares fell in thin trade on Monday while the dollar held firm after U.S. Federal Reserve Chair Janet Yellen indicated that the central bank was poised to raise interest rates this year.U.S. shares fell on Friday after Yellen suggested the Fed was ready to act if the economy kept improving as expected, though a raft of recent data has suggested it is growing only modestly in the second quarter. She said delaying a policy tightening until employment and inflation hit its targets risked overheating the economy. (Full Story)
A warning on Sunday by Greece's interior minister that

Tanzania growing the next wave of African millionaires

Cityscape view of Dar es Salaam, Tanzania. PHOTO: Getty Images

“It’s starts from quite a low base, which obviously helps to boost growth, but also there are a number of sectors that are doing quite well in Tanzania, including banking, construction, tourism, manufacturing, retail and transport and logistics as well. Those sectors are driving growth particularly in the millionaire space,” New World Wealth analyst Andrew Amoils told CNBC Africa.
According to the African 2013 Wealth Book report, the East African region’s newest millionaires are now likely to come from Tanzania.
Other key findings from the report include the discovery that over 30 per cent of Tanzanian millionaires live in Dar es Salaam, the capital city, and that the sectors expected to drive growth in the country in future are the telecoms, healthcare and insurance sectors.
“The biggest sector is still basic materials, but it hasn’t been growing as fast as some of the other sectors,” said Amoils.
He added that a number of African countries have a

Two killed in running street battles in Burundi's capital

Reuters

Street battles and gunfire erupted again in the capital on Thursday. PHOTO: IB Times

Street battles and gunfire erupted again in the capital on Thursday as protesters against President Pierre Nkurunziza rejected his calls for calm in Burundi, an ethnic tinderbox with a history of civil war and genocide.
The Burundi Red Cross said two protesters were killed as soldiers and police fired tear gas and shots in the air in confrontations with scores of young men throwing rocks and burning makeshift barricades in the roads.
That brings to 20 the number of deaths witnessed by the aid group, spokesman Alexis Manirakiza said, during almost a month of marches and a failed coup by Burundians trying to stop Nkurunziza securing what they say is an unconstitutional third term in office.
Another emergency official said the overall toll in

Al Shabaab attacks village in Kenya's Garissa

Reuters

Al Shabaab attacks village in Kenya's Garissa.

Al Shabaab militants attacked a village in the northeastern Kenyan county of Garissa, the ministry of interior said on Friday.
(READ MORE: Kenya says destroys two Al Shabaab camps in Somalia)
The Somalia-based al Shabaab group, which has carried out frequent attacks in Kenya in recent years to try to force Nairobi to pull its troops out of Somalia, struck a university in the same area last month, killing 148 people.
A ministry statement said the militants entered Yumbis village, 70 km (45 miles) north of Garissa town, on Thursday evening.
"Security forces swiftly mobilized and engaged the militants in a gun battle. No casualties were reported," the ministry said.
(READ MORE: Al-Shabaab militants attack Somali government building, at least 5 dead)
Kenya's tourism industry, a top foreign exchange earner, has borne the brunt of the attacks, as worried tourists cancel their bookings.

S.Africa's NUM union wants 84 pct pay increase for gold workers

Reuters

S.Africa's NUM union wants 84 pct pay increase for gold workers. PHOTOS: Getty Images

South Africa's National Union of Mineworkers (NUM) will push for an 84 percent rise in basic pay for entry-level gold mining workers, a near 10 percentage-point increase on previous demands, according to documents obtained by Reuters on Thursday.
They show that the NUM, which represents 57 percent of the workforce in the goldmining industry, want employers to pay entry-level workers a basic 10,500 rand ($888) a month.
(READ MORE: S.Africa’s AMCU wants gold sector to double minimum pay)
Entry-level gold diggers currently earn around 5,700 rand per month, not including various allowances structured into their pay packages.
Last month NUM sources had said it would ask for 10,000 rand for entry-level workers.
The latest demands have been seen by Reuters in official union documents dated April 30 and sent to mining companies body the South African Chamber of Mines.
The demands, which come as the central bank worries

S.Africa's power utility Eskom to cut up to 1,000 MW on Friday

Reuters

S.Africa's power utility Eskom to cut up to 1,000 MW on Friday. PHOTOS: Electrification Online

South Africa's power utility Eskom [ESCJ.UL], which has been battling a power supply shortfall, said it would shut off up to 1,000 megawatts of electricity from the national grid on Friday from 0400 GMT to 2000 GMT.

Ethiopia's economy to grow 10.5% in 2015/16: World Bank

Reuters

Ethiopia's economy is expected to grow by 9.5 per cent this fiscal year ending June before accelerating to 10.5 per cent in 2015/16.

Ethiopia's economy is expected to grow by 9.5 per cent this fiscal year ending June before accelerating to 10.5 per cent in 2015/16, the World Bank said on Friday, adding inflation will remain in single digits during this period.
The ruling Ethiopian People's Revolutionary Democratic Front (EPRDF) has touted its economic achievements before Sunday's election, although no one doubts it will sweep to power again, as critics say it stifles any real opposition.
There is just one opposition member of the outgoing parliament.
Lars Christian Moller, the World Bank's lead

The logo of car-sharing service app Uber on a smartphone over a reserved lane for taxis in a street is seen in this photo illustration taken in Madrid on December 10, 2014. Reuters/Sergio Perez

App-based taxi service Uber has sought a $1 billion credit line from several large banks, the Wall Street Journal reported Friday, citing people familiar with the matter. The report comes just days after the San Francisco-based company made a $3 billion offer to buy Nokia’s digital-mapping service “Here,” which is seen as the main competitor to Google Maps.
Although securing a line of credit is usually considered a step toward an initial public offering, Uber is unlikely to do so until next year at the earliest, the Journal reported. Uber currently boasts of a $41 billion valuation, making it one of the most highly valued

A member of the Nigerian army stood with a group of women and children rescued in an operation against the militant Islamist group Boko Haram in the Sambisa Forest, May 1, 2015. EPA/Getty Images

Nigerian officials are calling for local and international assistance as over 100 babies are being delivered daily in refugee camps across Borno state. Most of the pregnant women in the camps were displaced by the Boko Haram insurgency and raped by the militants, a Nigerian newspaper reported.
“We record an average of between five and six births in each of the 21 camps daily,” Alhaji Grema Terab, the executive chairman of Borno’s State Emergency Management Agency, told Leadership newspaper. “The state government is solely responsible for their daily feeding and provision of other needs.”
Terab said the birth rate was high in part because there

As the old saying goes, "You can't con an honest man." Hackers who are trying to blackmail Adult Friend Finder users seem to be using that same logic. Adult Friend Finder

Nearly four million accounts on Adult Friend Finder, a casual dating site that enables users to meet for sex, have been hacked. User's names, email addresses, whether an individual was single and other sensitive details were compromised in the breach, with authorities suggesting the hackers were motivated by the opportunity to blackmail embarrassed users.
An investigation by Britain's Channel 4 News revealed Thursday that 3.9 million of Adult Friend Finder's 64 million users (more than both Match.com and eHarmony) had their information stolen and leaked to a hacker forum. It looks like hackers launched a phishing campaign, which includes sending malware infected emails in bulk, and convinced users to enter their log-in information. From there, thieves can use that information to steal a target's identity, or in this case threaten to reveal they're listed as “seeking an extramarital affairs” unless they pay up.
Initial reports say deleted accounts have also been affected.
The site describes itself as a “thriving sexual community” that emphasizes the physical, erotic aspect of romance, rather than helping people find a lasting connection. The site has been criticized for listing far more men than women and for enabling prostitution.
Parent company Friend Finder Networks Inc said in a statement it “understands and fully appreciates the seriousness of the issue. We have already begun working closely with law enforcement and have launched a comprehensive investigation with the help of a leading third-party forensics expert,” as quoted by Business Insider.

Immigration Reform 2015: Illegal Immigrants Given Work Permits Shows Incompetency Of Obama Administration, Texas Attorney General Says

People are taken into custody by the U.S. Border Patrol near Falfurrias, Texas March 29, 2013. The state's attorney general said new revelations that 2,000 illegal immigrants received work permits "raises serious questions about the Obama administration's reliability." Reuters

Revelations that 2,000 work permits were given to illegal immigrants “raises serious questions about the Obama administration’s reliability,” according to the attorney general for Texas, who is leading a federal lawsuit that contends the president’s executive actions on immigration are illegal. In a court filing made Wednesday, Texas Attorney General Ken Paxton also called for increased oversight of the administration’s compliance with a judge’s injunction not to go forward with the executive orders.
“Not even the Obama Administration has a full grasp of the complicated bureaucracy that defines the president’s illegal amnesty plan,” Paxton said in a statement issued Wednesday. “The newly-revealed admission that even more expanded work permits were granted to 2,000 illegal immigrants raises serious questions about the Obama Administration’s reliability moving forward. Increased oversight is needed to hold the federal government accountable for its apparent inability to report accurate information to the court.”
Paxton said the administration didn’t turn over documents related to

Some reports say that the Islamic State militant group has carried out beheadings in Palmyra, Syria. Above, residents walk near a military truck that belongs to forces loyal to Syria's President Bashar al-Assad, near the historical city of Palmyra Tuesday, before Islamic State fighters gained control of the city Wednesday. Reuters/Stringer

The Islamic State group has beheaded at least four people in Palmyra, the historic city in eastern Syria it gained control over Wednesday, according to images sent to news media. The images showed men wearing civilian clothing.
Some reports listed the executed men as fighters with the Syrian regime, the Independent reported. Other activists in Palmyra said the men were from a Sunni tribe called the Shaitat, which hails from the eastern Syrian province of Deir Ez-Zor and

Tapped by Dish Network to create a “next-generation TV service,” Roger Lynch came up with a product that could upend the entire TV industry. Pictured: Roger Lynch introduces Sling TV at the 2015 Consumer Electronics Show. Sling TV

Roger Lynch might be one of the most disruptive people working in television. As executive vice president of advanced technologies for Dish Network Corp., he led the creation of Sling TV, the bundle-busting Web TV service that offers a slim package of about 20 cable channels -- including ESPN, AMC, CNN and others -- for just $20 a month, with no long-term contract. The service debuted in February and has been aggressively adding new channels, and more flexible packages, since.
Although Dish declined to say how many subscribers Sling has attracted so far, it’s certainly been one of the most talked-about products in streaming television, also known as over-the-top TV. Lynch joined Dish in 2009 when Charlie Ergen, the company’s chairman, hired him to create a “next-generation TV service” that would appeal to the mostly younger consumers who were either cutting the cable cord or never had cable to begin with. Back then, Lynch said, Ergen was already concerned that traditional pay television would reach a saturation point, and even begin to decline. He was right.
But building a cheaper online alternative to

French court upholds ban on unlicensed taxis, hitting Uber

PARIS

France's highest administrative court on Friday backed restrictions on unlicensed taxi services in a decision adding to U.S. start-up Uber's legal troubles.The San Francisco-based company, which connects drivers with passengers through a smartphone app, faces legal challenges in several European countries where licensed taxis drivers have protested against what they see as unfair competition.
France's constitutional council said that unlicensed taxis had to return to their bases after dropping off a customer or await new fares from a parking lot, upholding a ban on them driving around looking for new clients.
The court also backed restricting apps like Uber's that both indicate the location of near-by taxis to potential clients on their smart phones and their availability.
A Paris appeals court had been waiting for the decision before

Audi will enhance Chinese connected-car services with Baidu

NECKARSULM, Germany

Germany's Audi (VOWG_p.DE) will enhance connected-car services in China to meet growing demand for driver-assistance systems and driverless technology in the world's largest auto market.Volkswagen's flagship luxury brand said on Friday it will jointly develop navigation map data, positioning algorithms and point-of-interest functions with China's web services provider Baidu.
Chinese Internet companies and auto makers have been quick to team up to start developing partly self-driving and Internet-connected cars, following a path already trodden by U.S. tech giants Google Inc and Apple Inc.
"We are now taking our next big step in China," Chief Executive Rupert Stadler said at the carmaker's annual shareholder meeting in Neckarsulm, Germany. "The virtual and real worlds are merging."
The greater use of electronics and software in vehicles, and the ability of cars to connect to smartphones and other devices, is providing automakers, suppliers and technology firms with new business opportunities.
Audi and Baidu agreed a memorandum of understanding in January and will sign a contract on their partnership at the May 25-27 international Consumer Electronics Show (CES) in Shanghai.
Ingolstadt-based Audi also said it will develop a China-specific LTE module with Huawei [HWT.UL] to deliver fast-data transmission for use in China, Japan and Korea.
Germany's premium carmakers Mercedes, Audi and BMW have teamed up with private equity firm General Atlantic to increase their firepower as they're jointly bidding for Nokia's mapping unit HERE, two sources told Reuters on Thursday.
Separately, Audi reaffirmed it aims to increase sales significantly this year beyond the record 1.74 million cars achieved in 2014. This translates into growth of between five and 9.9 percent, a spokesman said.
Stadler said the planned Q8 flagship sport-utility vehicle (SUV) will be launched in 2019, a year after a new electric SUV will come to market.

Nokia CEO says in no hurry to sell mapping unit HERE: magazine

HELSINKI

Nokia (NOK1V.HE) is in no hurry to sell its mapping unit HERE despite receiving high quality bids, the Finnish company's chief executive said in a trade magazine interview.Telecoms network equipment maker Nokia began a strategic review of its maps business last month, setting in motion an auction process that has pitted Internet players like Uber and Baidu (BIDU.O) against German carmakers in a deal that could be worth up to $4 billion.
While declining to comment on bidders, Chief Executive Rajeev Suri acknowledged in trade magazine European Communications that the unit had attracted "significant interest", and said the quality of the bids was better than expected.
But he added: "Let's give it more time...We may not end up selling it if we don't get the right value. It has to be a good competitive deal for Nokia and our shareholders."

China says U.S. actions in South China Sea 'irresponsible, dangerous'

BEIJING | By Sui-Lee Wee

China said on Friday it was "strongly dissatisfied" after a U.S. military plane flew over part of the South China Sea near where China is building artificial islands, and called on the United States to stop such action or risk causing an accident.The Chinese navy issued eight warnings to the U.S. P8-A Poseidon, the U.S. military's most advanced surveillance aircraft, when it conducted the overflights on Wednesday, according to CNN, which had a team on board the U.S. aircraft.
China claims 90 percent of the South China Sea, which is believed to be rich in oil and gas, its claims overlapping with those of Brunei, Malaysia, the Philippines, Vietnam and Taiwan.
Foreign Ministry spokesman Hong Lei said the

Brent crude oil slips towards $66 before long weekend

LONDON | By Christopher Johnson

Oil prices slipped on Friday as worries over the impact of war in the Middle East on crude supplies were outweighed by reports of profit-taking ahead of a long weekend.Monday, May 25 is Memorial Day in the United States and a public holiday in much of Europe, leaving many markets closed.
"No one wants to hold open positions ahead of a long weekend so books are being squared, bringing some consolidation," said Carsten Fritsch, senior oil and commodities analyst at Commerzbank in Frankfurt.
July Brent crude LCOc1 was down 45 cents at $66.09 a barrel by 1030 GMT after closing up 2.3 percent on Thursday.
U.S. crude futures are experiencing their longest winning streak since records began in 1983, helped by a drop in U.S. crude and product stockpiles last week, reflecting better demand in the world's largest oil consumer. [EIA/S]
U.S. crude for July CLc1 was down 30 cents at $60.42 a barrel, but poised to post gains for the 10th week in a row.
Data from the U.S. Energy Information Administration this

Friday 29 May 2015

Monday 25 May 2015

Friday 22 May 2015

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