Company news in brief

Old Mutual chairman apologises over remarks

The chairman of South African insurer Old Mutual, Trevor Manuel, on Tuesday apologised for comments he made last week in reference to the judge presiding over its court battle with fired chief executive Peter Moyo.

Old Mutual has been locked in a bitter and damaging dispute with Moyo since it suspended him in May in relation to a conflict of interest.

It fired him a few weeks later, but he was reinstated by the courts in an embarrassing outcome for the insurer, which sacked him for a second time last month.

After months of public fighting that have knocked Old Mutual's reputation, Manuel said during a press conference last week that "difficulty" arises when a board could be overturned "by a single individual who happens to wear a robe".

"It was never my intention to show disrespect to the learned judge or his judgement," Manuel said. "I accept that my language was wholly inappropriate to express my disagreement with the decision and sincerely regret the manner in which I did so." – Nampa/Reuters

Vitol, Mozambique form trading JV

Global energy trader Vitol and Mozambique's state oil firm ENH have launched a trading joint venture called ENH Energy Trading, Vitol said on Tuesday, to focus on liquefied natural gas (LNG), liquefied petroleum gas and condensate.

The new entity will be incorporated and based in Singapore. ENH will hold a 51% stake, while Vitol will hold the remainder.

The move is part of a wider trend since last year that has seen energy firms either set up new, dedicated gas trading desks or expand existing ones in Singapore. Asia is the fastest growing LNG market, led by Chinese demand.

Mozambique has an estimated 125 trillion cubic feet of technically recoverable gas resources and is expected to become a top LNG exporter with over 30 million tonnes per year, the statement said.

There are two mega LNG projects being developed in the Southern African country. – Nampa/Reuters

FedEx warns on profit

FedEx Corp warned on Tuesday that full-year earnings would miss analysts' estimates, as the US-China trade war exacerbates a global economic cooling and the company manages fallout from its split with customer-turned-competitor Amazon.com Inc.

Executives called out economic woes in Asia and Europe as well as the loss of Amazon, a "large customer."

The comments from Memphis, Tennessee-based FedEx came as global retailers are gearing up for the all-important holiday shopping season.

While FedEx has been grappling with its own challenges - particularly the costly and lengthy integration of its European TNT business - it is broadly seen as a bellwether for the global economy and the broader logistics sector.

FedEx now expects adjusted earnings of US$11 to US$13 per share for full-year 2020 ending 31 May. Adjusted net income fell more than 14% to US$800 million, or US$3.05 per share, in the fiscal first quarter ended 31 August. Revenue was flat at US$17.05 billion. – Nampa/Reuters

Huawei expects to see revenue uplift

Huawei Technologies expects the roll-out of next-generation 5G wireless networks to start contributing to the firm's revenue from next year when China launches services, the company's deputy chairman said yesterday.

The Chinese telecoms equipment giant has said that it has secured more than 50 5G commercial contracts even as it fights accusations from the United States and its allies that its networks are vehicles for Chinese espionage.

China's big three state telcos are racing to roll out 5G services in more than 50 cities this year, following countries like South Korea and the United States which have already started the service that promises to support new technologies such as autonomous driving.

Huawei's home market has become more crucial to the company since Washington in May banned US firms trading with it due to national security concerns, hitting the company's international business.

The company also yesterday launched what it described as "the world's fastest artificial intelligence training cluster", dubbed Atlas 900, and pledged to invest US$1.5 billion in its developer programme. – Nampa/Reuters

LSE investors awaiting higher offer

The Hong Kong Stock Exchange needs to stump up more cash to clinch a takeover of the prized London Stock Exchange Group - but still faces an uphill battle, investors say.

The Hong Kong Stock Exchange (HKEX) last week unveiled a shock cash-and-shares bid which was worth £32 billion (US$40 billion) and dependent on the axing of LSEG's proposed purchase of US financial data provider Refinitiv.

However, the owner of the London and Milan stock exchanges has unanimously rejected the bid as too low, arguing it remains committed instead to its takeover of Refinitiv for US$27 billion, while also citing concerns over HKEX ties to the Hong Kong government.

HKEX responded by indicating that it could go hostile, bypassing management and taking its proposal direct to shareholders - but the price is critical.

"The London Stock Exchange board of directors have given a very long list of why it is not interested," in the HKEX bid, said Iacopo Dalu, research analyst at LSE minority investor Janus Henderson investment fund. "One of them is the price," he told AFP. – Nampa/AFP