Bizness Lounge: June 2015

Tuesday, 30 June 2015

Puerto Rico governor calls for bankruptcy; adviser says island 'insolvent'

NEW YORK

Puerto Rico's governor on Monday called for the commonwealth to be allowed to restructure its debts under U.S. bankruptcy code, while a newly appointed adviser to the U.S. territory said it is "insolvent" and will soon run out of cash.Governor Alejandro Garcia Padilla, in a televised address, said sacrifice must be shared by bondholders, as he called for Washington to allow a bankruptcy debt restructuring.
The Caribbean island is struggling to relieve a $73 billion debt burden. It came to a crunch point on Monday - ironically at the same time as did debt-laden Greece - after a dire report on its stability by former International Monetary Fund economists was released ahead of key deadlines on Wednesday to repay debt.
Steven Rhodes, the retired U.S. bankruptcy judge who oversaw Detroit's historic bankruptcy and has now been retained by Puerto Rico to help solve its problems, gave a blunt assessment on Monday.
Puerto Rico "urgently needs our help," Rhodes said. "It can no longer pay its debts, it will soon run out of cash to operate, its residents and businesses will suffer," he added.
Puerto Rico's bonds skidded on

Carlos Slim scraps project with Donald Trump after Mexico insults

MEXICO CITY

A television company controlled by Mexican billionaire Carlos Slim has canceled a project with real estate developer and TV personality Donald Trump after his comments insulting Mexicans, Slim's spokesman said on Monday.This is the third company to cut ties with Trump, who is seeking the Republican nomination for the November 2016 presidential election. NBC said earlier on Monday that it would no longer air the "Miss USA" and "Miss Universe" pageants due to his comments. Spanish-language broadcaster Univision [UVN.UL] also said on Thursday it would not air the "Miss USA" pageant.
Ora TV, a production company co-founded by Slim and TV personality Larry King and funded by America Movil , canceled a program it

Apple conspired to fix e-book prices: U.S. appeals court

NEW YORK | By Nate Raymond and Jonathan Stempel

A divided federal appeals court on Tuesday said Apple Inc (AAPL.O) orchestrated a conspiracy with five publishers to increase e-book prices, in a victory for the U.S. Justice Department.By a 2-1 vote, the 2nd U.S. Circuit Court of Appeals agreed with a lower court judge that the conspiracy violated federal antitrust law, and that the judge acted properly in imposing an injunction to prevent a recurrence.
Writing for the majority, Circuit Judge Debra Ann Livingston said that by organizing the conspiracy, "Apple found an easy path to opening its iBookstore," while ensuring that marketwide prices rose to a level that Apple and the publishers wanted.
The ruling will uphold not just Apple's civil liability but also the terms of an injunction that limited its agreements with publishers.
The decision also means Apple will be required to pay $450 million as part of a related settlement with 33 attorneys general and lawyers for a class of consumers. The accord had been contingent on Apple's liability being upheld.
Neither Apple nor the Justice Department, which had

Apple conspired to fix e-book prices: U.S. appeals court

NEW YORK | By Nate Raymond and Jonathan Stempel

Nigeria central bank curbs access to foreign currency

Reuters

Nigeria's central bank has curbed access to the interbank currency market for the purchase of foreign currency bonds.

Nigeria's central bank has curbed access to the interbank currency market for the purchase of foreign currency bonds as well as a range of goods to tighten liquidity and conserve reserves.
The bank said importers could no longer get hard currency from the interbank market to buy items such as rice, cement, private jets, other construction materials, plastic and rubber products, soap, cosmetics, furniture and Indian incense.
Analysts said the latest measures risked diverting dollar demand to the black market, worsening perceptions about economic policy and delaying a decision to devalue the naira in the wake of weak oil prices.
"We see this policy move as confirmation that FX supply remains extremely tight. But more worryingly, it suggests that the central bank remains reluctant to devalue the naira," said Yvonne Mhango, sub-Saharan Africa economist at Renaissance Capital.
The naira, which was trading at 198.50 on the

Assore buys African Rainbow Mineral's stake in chrome mine

Reuters

South African iron ore producer Assore said on Thursday it had bought out African Rainbow Minerals' s Dwarsrivier chrome mine.

South African iron ore producer Assore said on Thursday it had bought out African Rainbow Minerals' s (ARM) 50 percent stake in the country's Dwarsrivier chrome mine for 450 million rand ($37 million) to take full ownership.
said in a statement that the long-term fundamentals for the chrome ore market supported an investment in the commodity and that the acquisition would help the firm expand its chrome capacity.
The Dwarsrivier chrome mine was owned by Assmang, a joint venture between Assore and diversified miner . The sale of ARM's stake is pending approval from the mines ministry, Assore said.
As of June 2014 Dwarsrivier mine, located in

Zimbabwe state asset manager takes up $100 mln in bad loans

Reuters

ZAMCO has so far taken nearly $100 million in bad loans from banks to help restore viability in the financial sector, Patrick Chinamasa said

A Zimbabwean state-owned asset management company has so far taken nearly $100 million in bad loans from banks to help restore viability in the financial sector, finance minister Patrick Chinamasa has said.
The Zimbabwe Asset Management Company (ZAMCO) was created by the central bank in August to take over non-performing loans from banks that had reached $750 million and were restricting banks from providing new loans.
Chinamasa told parliament that ZAMCO would, however, not take

Zuma to release 'Marikana massacre' report tonight

CNBC Africa

South Africans braces themselves for the early release of the Marikana massacre report. PHOTO: GCIS

South Africans braces themselves for the early release of the Marikana massacre report.
President Jacob Zuma will release the findings of the report on Thursday night.
The report is an investigation into the 2012 shooting of 34 striking miners at Lonmin's Marikana mine, the Presidency said in a statement.
President Zuma’s speech will be broadcast by the national broadcaster at 1700 GMT.

Samsung To Release Several Mid-Range Smartphones In India To Take On Xiaomi, Micromax

Hyun Chil Hong (R), president and chief executive of Samsung India Electronics, and Bollywood actress Huma Qureshi hold the Samsung's new Z1 smartphones at its launch in New Delhi January 14, 2015. South Korea's Samsung Electronics Co Ltd has launched the first smartphone powered by its Tizen operating system, a major development in the tech giant's aim to build a software ecosystem to rival Google Inc's Android. Reuters/Adnan Abidi

Samsung Electronics Co. Ltd. is looking to capitalize on its recent success in regaining market share in India by aggressively chasing the mid-range segment in which industry analysts have said the world’s No. 1 smartphone maker lost ground to Chinese competition last year.

The Korean smartphone giant is gearing up

Nigerian President Muhammadu Buhari speaks at his political party's primary in Lagos, Nigeria, Dec. 11, 2014. Buhari has vowed to recover the "stolen" billions he claims were taken by previous administrations. Getty Images/Pius Utomi Ekpei

Nigerian President Muhammadu Buhari has vowed to recover billions of “stolen” dollars in the next three months with help from the United States and other countries. Buhari said Tuesday that previous administrations had robbed Nigeria’s treasury, leaving it “virtually empty,” according to local media reports.
The Nigerian leader did not specify which other nations had agreed to help, but he said his administration would provide them with the information needed to recover the monies. “In the next three months, our administration will be busy getting those facts and the figures to help us recover our stolen funds in foreign countries,” Buhari told members of the Northern Traditional Rulers Council in Abuja, Nigeria, Tuesday, according to the local Premium Times newspaper.
Nigeria is Africa’s richest and most populous nation as

Robust U.S. consumer spending buoys economic growth outlook

WASHINGTON | By Lucia Mutikani

Customers shop in the pharmacy department of a Target store in the Brooklyn borough of New York June 15, 2015.

Reuters/Brendan McDermid

U.S. consumer spending recorded its largest increase in nearly six years in May on strong demand for automobiles and other big-ticket items, further evidence that economic growth was gathering momentum in the second quarter. While other data on Thursday showed a modest increase in first-time applications for unemployment benefits last week, the underlying trend in jobless claims continued to suggest the labor market was tightening.
"The robust rebound in spending provides some much needed confidence that the economic recovery is continuing to build on the positive momentum of recent months," said Millan Mulraine, deputy chief economist at TD Securities in New York.

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The Commerce Department said consumer spending increased 0.9 percent last month, the biggest gain since August 2009, after an upwardly revised 0.1 percent rise in April.
May's sturdy increase suggested households were finally spending some of the windfall from lower gasoline prices, and capped a month of solid economic reports.
Consumer spending, which accounts for more

Creditors, Greeks put rival proposals to EU ministers

BRUSSELS | By Jan Strupczewski and Renee Maltezou

International Monetary Fund Managing Director Christine Lagarde (L) shakes hands with Greek Finance Minister Yanis Varoufakis (R) during a Eurozone finance ministers emergency meeting on the situation in Greece in Brussels, Belgium June 25, 2015.

Reuters/Philippe Wojazer

Greece's international creditors put a final cash-for-reform proposal to euro zone finance ministers on Thursday in a showdown with Athens after lengthy negotiations failed to yield an agreed plan to avert an imminent default.Defiant Greek ministers said they would stick to their own proposals, based largely on increases in tax and social contributions, which the country's lenders say would not raise enough revenue to plug a gaping budget hole.
"The decision lies exclusively with the Greek authorities. They have, however, rather gone backwards," German Finance Minister Wolfgang Schaeuble said on arrival for the second emergency Eurogroup meeting in less than 24 hours.
Without a deal by the weekend to unlock frozen aid, Greece, which

S.African govt to be investigated over al-Bashir saga

By: Lesego Motshegwa

Dunstan Mlambo, has urged prosecutors to determine how Sudan’s President Omar al-Bashir left South Africa a free man. PHOTO: Wiki

A South African court has ruled that Sudan's President Omar al-Bashir did not have immunity from arrest while attending the African Union summit.
Head of the High Court in Gauteng, Dunstan Mlambo, has urged prosecutors to determine how Sudan’s President Omar al-Bashir left South Africa a free man.
Judge Mlambo, recommended the South African government be investigated for breaking the law by allowing Bashir to leave the country on 15 June.

Behind Shuttleworth's battle with SARB

Ferdie Schneider

Ferdie Schneider writes on how Mark Shuttleworth lost his case against the South African Reserve Bank. PHOTO: Wiki

The Constitutional Court delivered judgement on 18 June 2015 against Mark Shuttleworth in favour of the South African Reserve Bank (SARB) and the Minister of Finance.
Mark Shuttleworth emigrated to the Isle of Man in 2001 to invest outside South Africa and applied to SARB to transfer approximately R2.5 billion. SARB imposed an exit charge of 10% on the capital and Shuttleworth paid approximately R250 million although he challenged the constitutionality of imposition.
Prior to this, the High Court held that the exit charge was not a revenue-raising tax and was lawful. The Supreme Court of Appeal then found in favour of Shuttleworth that the charge was unlawful as it was not done in accordance with the procedures that the Constitution prescribed for a money Bill and SARB was directed to repay the amount with interest.
The Court did not decide on whether any exchange control provisions were unconstitutional.
SARB and the Minister then appealed this decision. The crisp issue that

Zuma defends police before 'Marikana massacre' report

Reuters

President Jacob Zuma on Tuesday defended the actions of police who shot dead 34 striking workers in 2012 at Lonmin's Marikana mine.

South Africa's President Jacob Zuma on Tuesday defended the actions of police who shot dead 34 striking workers in 2012 at Lonmin's Marikana mine.
Speaking days before publication of a report on the most deadly security incident since the end of apartheid, Zuma said: "Those people in Marikana had killed people and the police were stopping them from killing people."
He was responding to a question during a visit to a university in Pretoria.
Zuma received the results in March of a nearly three-year inquiry by retired judge Ian Farlam into the "Marikana massacre".
Ten other people were killed in violence relating to the strike, including two police officers who were hacked to death
The shootings sparked intense public and media criticism toward the police, mining companies, unions, the ruling African National Congress and Zuma.
As well as investigating the shootings, the

Kenyan tea Q1 output falls after drought

Reuters

Kenya's tea output plunged in the first quarter of 2015 from a year before due to dry weather conditions. PHOTO: Getty Images

Kenya's tea output plunged 27 percent in the first quarter of 2015 from a year before due to dry weather conditions, data from the industry regulator showed.
Kenya is the world's leading exporter of black tea and the commodity is a major foreign exchange earner for East Africa's biggest economy.
Data posted on the Agriculture, Fisheries and Food Authority's website seen by Reuters on Wednesday showed that output fell to 81.7 million kg of black tea between January and March from 111.9 million kg in 2014.
Exports, usually higher than output due to leftover stocks, fell 5 percent in the period to 119.2 million kg down from 125.4 million kg over a similar period, the regulator said.
Kenya experienced drought conditions early this year, which affected tea output, leading to less deliveries at factories.
Kenyan tea growers produced 444.8 million kg in 2014, up from 432.2 million kg in 2013.

Google launches free streaming service ahead of Apple Music debut

SAN FRANCISCO | By Yasmeen Abutaleb

Google Inc launched a free version of its music streaming service on Tuesday, as it sought to upstage the debut of Apple Inc's rival service next week.Google Play Music has offered a $9.99 per month subscription service for two years but Tuesday's launch is the first free version of the streaming service. It is available online and will be available on Android and iOS by the end of the week, Elias Roman, Google product manager, said.
Apple said earlier this month it would launch a music streaming service on June 30 for $9.99 per month along with a $14.99 per month family plan, with a free three-month trial.

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As with other streaming services, such as

Google Genomics adds Broad Institute's DNA analysis toolkit

NEW YORK

Google Genomics, the cloud-based computing business that is racing to increase its share of online DNA analytics, on Wednesday began offering a cloud service version of the popular DNA analysis software from the Broad Institute, a biomedical research organization.The Google Inc research tie-up comes as academic institutions and healthcare companies are choosing between Google and other technology companies, like Amazon.com Inc, Microsoft Corp and International Business Machines Corp, to host and analyze genetic databases as they look to cure diseases. That sector could be worth $1 billion by 2018, analysts say.
The Broad Institute is made up of scientists from

U.S. mortgage applications rise in latest week: MBA

NEW YORK, June 24

Applications for U.S. home mortgages rose last week as interest rates dipped, an industry group said on Wednesday.The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 1.6 percent in the week ended June 19.
The MBA's seasonally adjusted index of refinancing applications rose 1.8 percent, while the gauge of loan requests for home purchases, a leading indicator of home sales, rose 1.2 percent.

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The refinance share of total mortgage activity rose to 49.0 percent of applications from 48.5 percent the week before.
Fixed 30-year mortgage rates averaged 4.19 percent in the week, down 3 basis points from 4.22 percent the previous week.
The survey covers over 75 percent of U.S. retail residential mortgage applications, according to MBA.

Wal-Mart to impose charges on suppliers as its costs mount

By Nathan Layne

Wal-Mart Stores will begin charging fees to almost all vendors for stocking their items in new stores and for warehousing inventory, raising pressure on suppliers as the world’s largest retailer battles higher costs from wage hikes.The company said it started informing suppliers about the fees and other changes to supplier agreements last week. The changes, which also include amended payment terms, will affect 10,000 suppliers to its U.S. stores.
While the chain has sometimes imposed such fees in the past, they were not applied uniformly. Some but not all suppliers were charged, spokeswoman Molly Blakeman said without providing details.

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The changes are aimed at bringing "consistency to the collection of allowances related to the growth of our business and suppliers' use of the

Battle over Confederate flag unfurls in South Carolina and beyond

COLUMBIA, S.C. | By Harriet McLeod

An initiative to remove the Confederate flag from the South Carolina State House grounds picked up steam on Tuesday, a week after the massacre of nine black church members, and criticism over the emblem long associated with slavery spread to other U.S. southern states.U.S. retailers joined lawmakers in distancing themselves from the banner, with industry leaders Amazon.com Inc (AMZN.O) and Wal-Mart Stores Inc (WMT.N) pulling the images of the rebel flag from their stores and websites, joining Google Inc (GOOGL.O), Sears Holdings Corp (SHLD.O) and eBay Inc (EBAY.O).
The Civil War-era flag of the South's pro-slavery Confederacy has become a lightning rod for outrage over the shootings in Charleston, South Carolina, which authorities say was motivated by racial hatred.

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In Columbia, the capital of South Carolina, hundreds of people chanted "Take it down," while state lawmakers voted on Tuesday to open debate on removing the Confederate flag from the State House grounds.
Dylann Roof, a 21-year-old white man charged with nine counts of murder for the shooting at the church last Wednesday, had posed with a

France summons U.S. envoy over 'unacceptable' NSA spying

PARIS | By John Irish and Elizabeth Pineau

The top floors of the U.S. Embassy in Paris, France, is seen the day after WikiLeaks revelations of US spying on French presidents, June 24, 2015.

Reuters/John Schults

France summoned the U.S. ambassador on Wednesday to explain allegations by transparency lobby group WikiLeaks of what President Francois Hollande branded "unacceptable" spying on successive French leaders.The latest revelations of espionage among Western allies come after it emerged the U.S. National Security Agency (NSA) had spied on Germany and that Germany's own BND intelligence agency had cooperated with the NSA to spy on officials and companies elsewhere in Europe.
Hollande held an emergency meeting of his ministers and army commanders after revelations the NSA had spied on the last three French presidents. Government spokesman Stephane Le Foll said a senior French intelligence official would be

China to widen draft security law to cover space, sea, polar interests

BEIJING

China will add its assets and activities in space, the deep sea and polar regions to its pending national security law, state media said on Wednesday, the latest changes to the sweeping and controversial draft legislation.President Xi Jinping, who heads a newly established national security commission, has said China's security covers a wide array of areas, including politics, culture, the military, the economy, technology and the environment.
But foreign business groups and diplomats have argued that the draft national security law, which could be adopted after a third reading over the next week by China's top legislative committee, is too broad and vague.

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"Harmful moral standards", for example, would also be

China to widen draft security law to cover space, sea, polar interests

BEIJING

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"Harmful moral standards", for example, would also be handled under the law, state media said after its second reading in April by the National People's Congress (NPC) standing committee, a group of about 200 members led by the ruling Communist Party.
"Some standing committee members, participants and departments suggested that in space, the deep sea, polar regions and other strategic new frontiers, China has real and potential major national interests and faces security threats and challenges," the official Xinhua news agency said.
China would therefore "peacefully explore and

Wall St opens lower as Greece deal optimism fades

By Tanya Agrawal

Wall Street opened lower on Wednesday after a setback in Greece's debt talks even as data showed that the U.S. economy's first-quarter contraction was smaller than earlier thought. Greek Prime Minister Alexis Tsipras has attacked the stance of "certain" creditors as "strange" because they rejected proposals presented by Athens to bridge a budget gap, a government official said without referring to specific proposals or which of the three institutions Tsipras was blaming for the deadlock.
Tsipras will meet the heads of the European Central Bank, the International Monetary Fund and the European Commission in Brussels before a meeting of euro zone finance ministers at 1300 p.m. ET.

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Greece needs fresh funds to avoid defaulting on a $1.8 billion debt repayment to the IMF on June 30.
"Tensions seem elevated between Greece and its creditors," said Adam Sarhan, chief executive of Sarhan Capital in New York.
"There are worries that if Greece defaults, how will

Tsipras flies to Brussels to try to bridge gaps with Greece's creditors

ATHENS/BRUSSELS | By Michele Kambas and Jan Strupczewski

Greek Prime Minister Alexis Tsipras (L) is welcomed by European Commission President Jean-Claude Juncker ahead of a meeting in Brussels, Belgium June 24, 2015.

Reuters/Julien Warnand

Greece's international lenders demanded on Wednesday that it improve proposed tax and reform measures in a last-minute race to clinch a deal to unlock aid and avert a debt default next week.Sources close to the negotiations said the creditors had presented counter-proposals to Athens to overcome differences, with euro zone finance ministers due to convene at 1 p.m. EDT to try to approve an agreement.
Before flying to Brussels for meetings with the creditors, leftist Greek Prime Minister Alexis Tsipras attacked the stance of "certain" creditors as strange because he said they had rejected measures Athens put forward to plug a budget gap.

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"The repeated rejection of equivalent measures by

Forbes Africa’s 30 Under 30: Tomorrow's billionaires

Tshepo Tshabalala

FORBES AFRICA makes history with its first ever home-grown 30 Under 30 list.

FORBES AFRICA makes history with its first ever home-grown 30 Under 30 list. These are the young and gifted, burning stars on the horizon; the billionaires of tomorrow who will create the jobs and wealth that this continent needs.
We have selected 30 for the future in a number of key fields that drive economic growth. You may not know many of their names now, but in 20 years they could be on the cover of FORBES AFRICA with their story of multi-million-dollar success. We hope so. For now, look, debate and work out who is most likely.
Nominees came from readers and the FORBES AFRICA team; they were decided upon by a selected panel of judges from across Africa. Months of research yielded a list of 150 young hopefuls. We worked for weeks, verifying and investigating, to whittle it down. We favoured entrepreneurs with fresh ideas and took into account their business size, location, struggles and determination.
Senior editors then debated and argued over the final 30.
We find this list exciting, thought provoking and forward looking. We hope you will too.

30 Under 30 Final Nominees
1. Rupert Bryant, 29, South Africa
Co-founder, ISP Web Africa
A school drop-out, Rupert grew up in Cape Town has been running his own web development company since the age of 14. At the age of 16, his friend asked him to jump in on a joint venture. This is how he became the co-founder and chief operating officer of Web Africa, one of the biggest internet service providers in South Africa. Web Africa was started with no money and built it into a R130 million a year business. In 2014, Bryant re-launched Accommodation Direct; an online tourism business that specializes in short-term accommodation rentals. His dream is to sail around the world.
2. Ali-shah Jivraj, 27, Uganda
Chief Executive, Royal Electronics
Jivraz began life as an entrepreneur in Kampala at the age of 17 with a chance meeting with an electronics technician. The two struck on the idea of repairing and manufacturing television sets, radios and DVD players. Out of this, in 2005, came the Royal Electronics firm in Kampala. Less than a decade later, this company is one of six in East Africa that

S.Africa's rand gains, supported by hopes of Greek breakthough

Reuters

The rand inched close to a one-month high on Monday as hopes of a breakthrough in the Greek debt crisis supported emerging markets assets.

South Africa's rand inched close to a one-month high on Monday as hopes of a breakthrough in the Greek debt crisis supported emerging markets assets.
At 0600 GMT the rand advanced 0.28 per cent to 12.1450 per dollar, taking advantage of a defensive greenback to keep the 12.1380 landmark within striking distance.
Greek Prime Minister Alexis Tsipras made a new offer on a reforms package to foreign creditors on Sunday which may pull the country back from the brink of bankruptcy.
The dollar shed 0.25 per cent against a basket of major currencies, opening the way for the rand to test resistance levels beyond 12.14.
"From a technical perspective the rand is in another corrective phase," said Warrick Butler, chief currency dealer at Standard Bank.
"If the rand manages to break below 12.1350 today then the chances are good for further corrective action to 12.05 and even 11.98," Warrick said in a morning market note.
The rand gained 3 per cent against the dollar last week. Data risks to further progress this week are current account figures on Tuesday and producer inflation on Thursday.
Government bonds were little changed, with the benchmark issue due in 2026 unchanged at 8.39 per cent.

Obama’s visit to Kenya: why Africa matters to America

Scott Firsing

US President Barack Obama speaks at the US-Africa leaders summit. PHOTO: USAID

Preparations are underway for US President Barack Obama to once again visit Africa. In July, he will become the first American president to visit Kenya.
Ahead of Obama’s visit, Kenyan President Uhuru Kenyatta launched the local chapter of a global initiative to promote entrepreneurship. The pair will be co-hosting the sixth Global Entrepreneurship Summit in Nairobi.
Obama has visited Africa several times over recent years, highlighting his commitment to the continent. He visited Egypt in June 2009, Ghana in July 2009, Senegal, South Africa and Tanzania in June-July 2013 and South Africa again in December 2013 to attend former South African president Nelson Mandela’s funeral.
US Secretary of State John Kerry recently paved the way for Obama’s visit. This included visiting Camp Lemonnier, Djibouti and Somalia during a

Mediclinic aquires shares in Britain's Spire

Reuters

Remgro will subsequently sell the stake to Mediclinic International.

South African investment house Remgro Ltd has offered 431.7 million pounds ($686 million) for almost a third of Britain's Spire Healthcare, it said on Monday.
Remgro will subsequently sell the stake to , South Africa's biggest private hospital group, of which it owns about 40 per cent, for 8.6 billion rand ($709 million).
Under the deal, Remgro will buy about 120 million shares, or 29.9 per cent stake, for 3.6 pounds each from buyout firm Cinven using its own cash as well as financing arranged by Rand Merchant Bank.
Mediclinic, which also runs hospitals in Switzerland and the Middle East, will fund the deal with a 10 billion rand rights offer. Mediclinic will sell just over 111 million shares at 90 rand each.
Spire is the UK's second-largest private hospital operator.
($1 = 0.6292 pounds)
($1 = 12.1284 rand)

Shares in South African gold producers drop as wage talks begin

Reuters

Shares in South African gold mining companies dropped in early trade as investors brace themselves for the sector's wage talks.

Shares in South African gold mining companies dropped in early trade on Monday as investors braced themselves for the start of what could be tough wage negotiations later in the day while a faltering bullion price added the bearish sentiment.
The talks, which include Africa's top bullion producer AngloGold Ashanti, and [DAT HAR:Harmony Gold], come at a time when the industry is grappling with depressed prices, falling production and rising costs.
The firms say high pay increases would lead to the decline of a struggling industry.

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However, the sector's biggest union, the National Union of Mineworkers (NUM), wants around 80 per cent pay increase for its lowest-paid members while the Association of Mineworkers and Construction Union seeking a more than two-fold increase.
By 0814 GMT, shares in had dropped 4.7 perc ent to 112.26 rand, Harmony lost 2 per cent to 16.57 rand and Sibanye Gold shed 3.9 per cent to 18.76 rand.
David Sipunzi, newly elected head of NUM, defended his unions wage demands in the ailing industry, saying miners were still being paid "apartheid wages."
The talks will not involve because it has already signed an agreement with the unions. It's shares had fallen by 2.9 percent to 38.05 rand.
Gold eased from a near-four-week high on Monday, slipping below the $1,200 mark as possible signs of progress in Greek debt talks curbed safe-haven bids for the metal.

Hitler Paintings Sold At Controversial German Art Auction, Sales Total $450,000

Adolf Hitler produced hundreds of paintings before World War II, most of which depicted architecture, including public places, castles and farmhouses. Pictured above is a painting by Hitler of "The Courtyard of the Old Residency” in Munich, 1914. Creative Commons

A collection of watercolor paintings made by Adolf Hitler fetched $450,000 dollars at a German auction over the weekend and saw the highest price paid for one of the Nazi leader’s paintings to date, according to the Independent. The most expensive painting, which sold for about $113,000, depicted the famed Neuschwanstein Castle in Bavaria, Germany, a 19th-century palace that was the inspiration for Disneyland’s Sleeping Beauty Castle. It was signed “A. Hitler” and was dated 1910.
The painting reportedly went to a buyer in China after a bidding war between Brazilian, Chinese, French, German and United Arab Emirates bidders. "These collectors are

A screen grab of the OnePlus One promotion on Indian online shopping site Flipkart.com, on Mon, June 22, 2015. Ahead of the release of its new smartphone, Chinese company OnePlus is offering its first handset at discounts in India where the company has attracted strong interest. Flipkart/Screenshot

OnePlus has struck a deal to sell its One smartphones on Flipkart.com as well as in India, after initially selling the phones exclusively via invites and then through Amazon.com’s India website.

The black sandstone 64GB version of the One is available on both sites at identical prices, 1 The company also announced recently that the new phone will ship with the Snapdragon 810 processor in version 2.1 that fixed overheating issues, which were reported for this chipset. The new phone -- and all its future versions -- will also be the first to officially run on the company’s o9,998 rupees (about $313), a 2,000 rupee discount to its earlier price. Flipkart is

North Korea has reportedly announced its intention to boycott the upcoming Summer Universiade games, scheduled to be held in South Korea next month. In this photo, U.N. Secretary-General Ban Ki-moon (L) shakes hands with South Korean President Park Geun-Hye during a meeting at the presidential Blue House in Seoul on May 20, 2015. Reuters/Jung Yeon-je

North Korea has reportedly announced its intention to boycott the upcoming Summer Universiade games, scheduled to be held in South Korea next month, to protest the opening of a new United Nations Human Rights Office in Seoul. The office, which is tasked with monitoring North Korea’s alleged rights violations, is scheduled to open on Tuesday.
North Korea was initially planning to

Global markets rally on Greek optimism

LONDON | By Jamie McGeever

Traders work at their screens in front of the German share price index DAX board at the stock exchange in Frankfurt, Germany June 22, 2015.

Reuters/Stringer

Global stocks, the euro and peripheral euro zone bonds all rose on Monday, lifted by a wave of optimism that Greece and its international creditors will strike a last-minute deal that will see Athens avert default. Greek Prime Minister Alexis Tsipras will meet the heads of the European Commission, European Central Bank and International Monetary Fund on Monday ahead of a summit of euro zone leaders later in the day aimed at reaching a deal over debt talks.
The chief-of-staff to European Commission President Jean-Claude Juncker called the latest proposals from Greece a "good basis for progress", while EU Economic Commissioner Pierre Moscovici said he was "convinced" agreement will be reached.
Financial markets appeared willing to give the

Facebook gaining ground on YouTube in video ads, report says

FRANKFURT/PARIS | By Eric Auchard and Leila Abboud

Facebook (FB.O) is gaining ground on Google's (GOOGL.O) YouTube as an outlet for big companies to market their products via online videos, the fastest growing category of Internet ads, a report published on Monday said.The competition for video viewers opens up a new front in the clash between the two web giants that already compete in other types of advertising given their appeal to young and international consumers, Ampere Analysis said in a study.
London-based Ampere predicts a new advertising "arms race" between the two rivals, neck and neck in terms of audience sizes with around 1.4 billion to 1.3 billion monthly active users, respectively for Facebook and YouTube. That means consumers are likely to be forced to see more ads, but also enjoy a richer range of video programming as a result, it said.
The Internet will overtake TV advertising in 12 key markets, representing 28 percent of global ad spending by 2017, separate research by media-buying firm ZenithOptimedia said on Monday. Ad spending is projected to reach $531 billion this year.
Online video is now growing faster than any

Oil rises after EU welcomes new proposals from Greece

LONDON | By Ron Bousso

Oil prices rose above $63 a barrel on Monday in response to new proposals from Greece that the European Union welcomed as a basis for progress at talks to try to stave off a default that could cause turmoil in financial markets.But high levels of global oil production and stocks continued to exert pressure on crude prices.

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Brent crude for August delivery was up 30 cents at $63.32 a barrel by 0822 GMT, after falling nearly 2 per cent on Friday over worries about a potential Greek debt default.
Front month U.S. crude was 44 cents higher at $60.05 a barrel.
Prices rebounded from early lows after the EU's positive response to Greek Prime Minister Alexis Tsipras's latest proposals to try to resolve the country's debt crisis.
"Hopes that agreement could be reached in

Hunt for escaped convicts heats up near New York-Pennsylvania line

By Suzannah Gonzales

Hundreds of law enforcement officers stepped up their hunt in western New York state for two convicted murderers who escaped from an upstate prison more than two weeks ago, as another possible sighting of the men was reported in a new search area.The manhunt centered on the town of Friendship, located about 280 miles (450 km) southwest of the Clinton Correctional Facility in Dannemora, near the Canadian border, where the escaped convicts were serving life sentences for murder.
The search in Friendship was winding down by Sunday night, but increased patrols will stay in the area, New York State Police spokesman Beau Duffy told Reuters.
"We will continue to search this area until all leads have been exhausted," New York State Police Major Michael Cerretto said on Sunday.
"As we have in other areas of this state, we will search under every rock, behind every tree and structure until we are confident that area is secure."
State police received a call early

U.S. won't let Russia 'drag us back to the past': Pentagon chief

BERLIN | By Phil Stewart

The United States and its allies won't let Russia "drag us back to the past", U.S. Defense Secretary Ash Carter said in an address in Berlin on Monday, as he accused Moscow of trying to re-create a Soviet-era sphere of influence.Russia's intervention in Ukraine has put NATO allies in eastern Europe on edge and triggered a series of military moves by the NATO alliance, including an acceleration of exercises and the creation of a NATO rapid response force.
Carter, who will view components of that NATO force later on Monday, said the alliance would keep the door open to an improved relationship with Russia but said flatly: "It's up to the Kremlin to decide."
"We do not seek a cold, let alone a hot war with Russia. We do not seek to make Russia an enemy," Carter said. "But make no mistake: we will

Apple bows to Taylor Swift on paying for all music streaming

Apple Inc (AAPL.O) reversed its policy and said it would now pay artists during free trials of its new Apple Music streaming service, after pop star Taylor Swift said she would hold back her latest hit album "1989" from the service.Apple is offering users a three-month trial of its new service and had said it would not pay artists for the use of their music during that time.
Apple senior vice president Eddy Cue announced the change of heart through Twitter (@cue).
"We hear you @taylorswift13 and indie artists. Love, Apple," Cue tweeted. (twitter.com/cue)
Swift, 25, said in a Tumblr post on Sunday that she would hold back her album as she found Apple's policy of not paying artists during free trial shocking and disappointing as it would hurt young artists just starting out. (bit.ly/1eAa3Ys)
After the backflip from Apple, she turned to Twitter to thank both Apple and her supporters, telling her 59 million Twitter followers: "I am elated and relieved. Thank you for your words of support today. They listened to us."
Swift has fought with music streaming services before. She pulled her

West Africa plans regional power market to bridge electricity gap

Reuters

West Africa plans regional power market to bridge electricity gap. PHOTOS: Electrification Online

West Africa's regional body will pool its resources to establish an electricity market to end the blackouts that have blighted its 15 member states for decades.
Heads of states who gathered for a meeting of the Economic Community of West African States agreed to develop a regional electricity market almost two decades after the plan was conceived, Etienne Bailly, project director at Transco CLSG, told Reuters at a power conference in Nigeria.
(READ MORE: US working to power Africa’s electricity goals)
Transco CLSG - set up by West African Power Pool (WAPP) - will develop a 1,300 km (807 miles) interconnection line across Ivory Coast, Guinea, Liberia and Sierra Leone.
"We have developed a master plan to

Chevron completes sale of 40 % stake in two Nigerian oil blocks

Reuters

Last Updated: 19 June 2015|06:59 GMT

Chevron completes sale of 40 % stake in two Nigerian oil blocks. PHOTOS: harryhammer

U.S. oil company Chevron Corp said on Thursday it has completed the sale of its 40 percent stake in two Nigerian offshore oil blocks to local firm First Exploration & Petroleum Development Company Limited.
Chevron said in a statement that the sale of its interest in OML 83 and OML 85, started two years ago.

Kenya to give licences back to 13 Somali money transfer firms

Reuters

President Kenyatta says Somali money transfer firms banned after Garissa attacks are set to receive licences. PHOTOS: horseedmedia

President Uhuru Kenyatta on Thursday said Kenya will grant licences to 13 money transfer firms who were banned in the wake of the Garissa university attack in April and whose names are on a list of 85 entities with links to Somalia's al Shabaab.
The killing of 148 students by al Shabaab militants at Garissa, some 200 km (120 miles) from the border, had piled pressure on Kenyatta to

Chad says it bombs Boko Haram bases in Nigeria; Nigeria denies it

Reuters

Chad military says it bombs Boko Haram bases in Nigeria; Nigeria denies it.

Chad's military said it had carried out air strikes against Boko Haram bases in Nigeria in retaliation for twin suicide bombings in Chad this week that killed at least 34 people, but the announcement was strongly rejected by Nigeria.
The air raids caused heavy human and material damage to six of the Islamist militants' bases, Chad's military said late on Wednesday, without providing further details.
(READ MORE: Chad, Niger launch joint offensive against Boko Haram in Nigeria)
Nigerian authorities denied reports that the attacks had taken place on its soil, saying they were likely to have instead hit targets in neighbouring Niger.
"The claim that the Chadian military have conducted air strikes against six terrorist camps in Nigeria is not correct," said military spokesman Major General Chris Olukolade.
A few hours after Chad's announcement, Boko Haram militants attacked two villages in neighbouring Niger's southern region of Diffa, killing 38 civilians, most of them women and children, and burning over 100 homes, Niger's government said.
The attackers drove into the villages in the Gueskerou area, along the banks of the Komadugu River which separates Niger and Nigeria, late on

Chinese stock markets have worst week since global financial crisis

SHANGHAI | By Pete Sweeney and Samuel Shen

China's major stock indexes finished the week on a grim note on Friday, with the Shanghai index ending the week down 13.3 percent, its worst showing since the global financial crisis.Many analysts had warned that Chinese bourses had become too frothy since their run-up in November, with some companies trading at 200 or 300 times earnings amid incredible volatility.
The doubling in primary indexes in Shanghai and Shenzhen since late last year has made Chinese markets the world's best performing major market, but net market capitalization of the equity markets, at 66.2 trillion yuan ($10.7 trillion), now exceeds the size of the country's gross domestic product.

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The correction from the June 12 peak has wiped out 9.24 trillion yuan worth of value.
"Today's fall was more savage than we had expected. Investors were panicking," said Zhang Chen, analyst at Shanghai-based hedge fund manager Hongyi Investment.
"The market had gained so much previously, so I think there's an inherent need for a correction."
On Friday, the CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen plunged 6.0 percent, to 4,637.05, while the Shanghai Composite Index .SSEC lost 6.4 percent, to 4,478.36 points.
START OF MAJOR CORRECTION?All the major indexes are down 10 percent from their peaks, but analysts say it is unclear if this is the

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