Archives for April 2016

Apple recovers a ton of gold recycling devices (VIDEO)

The company sold 51.19 million iPhones January through March this year, down from 61.17 million in the same period a year ago. The iPhone accounted for 65 percent of Apple revenue. 

Sales of other products haven’t helped recoup the losses. IPad sales fell 19 percent during the first quarter. The company’s newest product, Apple Watch, brought in $6 billion in its first year.

Overall quarterly sales dropped 13 percent to $50.55 billion down from $58 billion last year. Apple posted a $3.05 billion reduction in net profit year-on-year.

Sales in China, an important market for the company, have been slowing. Chinese sales, including Hong Kong and Taiwan, decreased 26 percent to $12.49 billion, compared to a 71 percent surge a year earlier.

The company’s shares fell eight percent to $96.12 in after-hours trading on Tuesday. The drop took more than $46 billion off its market capitalization.

“It’s a tough bar to hurdle, but it doesn’t change the future. The future is very bright,” CEO Tim Cook told The Wall Street Journal, stressing that Apple performed well in the face of strong macroeconomic headwinds such as a strong dollar and hard economic conditions.

The company is gaining new smartphone users as well as customers switching from phones running Alphabet’s Android operating system, according to Cook.

Service revenues, including App Store and Apple Pay, grew 20 percent to $5.99 billion, the report says. Thirteen million users are subscribed to the streaming music service, up from eleven million in January.

The company promised to pay $250 billion in dividends to its shareholders by the end of March 2018.

Experts consider the recent figures to be the end of a golden age for smartphones, as sales have passed their all-time peak.

Article source: https://www.rt.com/business/341105-apple-first-sales-drop/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The Tripoli-based National Oil Corporation (NOC) is recognized as the only legitimate exporter of Libyan oil.

ISIS attacks oil infrastructure near Ras Lanuf port in Libya, threatens sequel

However, the eastern government has set up its own exporter. Last Friday, Tripoli said it prevented the unauthorized shipment of oil “without injury to anybody or loss of revenue or damage to the integrity of NOC or the country.”

But on Monday, the eastern government managed to ship its first tanker, which is now heading for Malta.

Maltese national television reported the ship was in international waters near Malta. The island’s authorities have said a request to dock would be declined.

It’s unknown how the eastern government is going to sell the oil, but one of the possible options is a ship-to-ship transfer in international waters.

“That’s very bad for Libya and very threatening, potentially, to the viability of any Libyan government,” a US official told the Guardian, preferring to stay anonymous.

“We are concerned about purchases of Libyan oil outside of legitimate channels,” US State Department spokesman John Kirby said on Tuesday, stressing that all crude exports should go through the Tripoli government.

Libya’s two rival governments were set up in 2014 in the aftermath of the three-year civil war. The renegade government’s efforts to sell oil through a parallel oil company have so far been blocked by Western countries.

Libya’s revenue is heavily dependent on oil exports. The conflict has slashed the country’s output to 400,000 bpd since 2014 from the 1.6 million bpd it pumped before the 2011 civil war.

Article source: https://www.rt.com/business/341096-libya-illegal-oil-export/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Bangladesh heist hackers compromised SWIFT software – report

The system used by SWIFT was compromised in the $81 million cyber heist from the US Federal Reserve account of the Bangladesh central bank.

“SWIFT is aware of a number of recent cyber incidents in which malicious insiders or external attackers have managed to submit SWIFT messages from financial institutions’ back-offices, PCs or workstations connected to their local interface to the SWIFT network,” the SWIFT group warned customers in a notice seen by Reuters.

The statement is the first time SWIFT has acknowledged there were other cyber incidents on its system, as well as the attack on the central bank of Bangladesh.

According to Reuters, SWIFT did not name any victims or disclose the value of any losses from the previously undisclosed attacks.

SWIFT has released a security update for the software that 11,000 financial institutions use to access its network, and has told customers the update should be installed by May 12.

On Monday, security researchers with British defense contractor BAE Systems alleged the cyber thieves who stole $81 million from the central bank of Bangladesh hacked SWIFT software.

Broken printer costs Bangladesh $100mn in cyber heist

In a note to customers SWIFT group said the attackers obtained valid credentials for operators authorized to create and approve SWIFT messages, then submitted fraudulent messages by impersonating those people.

Bangladesh Bank officials had blamed a broken printer for preventing the timely discovery of the hack of the bank’s overseas account.

The cyber thieves got away with $81 million while attempting to steal around $1 billion.

Experts say hackers are turning to SWIFT and other private financial messaging platforms because they could steal larger amounts.

 “These hacks specifically target financial institutions because smaller efforts result in much larger thefts,” said Shane Shook, a banking security consultant.“It’s much more efficient than stealing from consumers.”

“After the Bangladesh bank heist became public, every other attacker out there is looking to see if they can do the same,” said Justin Harvey, chief security officer with Fidelis Cybersecurity.

SWIFT’s messaging services are used by about 11,000 financial institutions in more than 200 countries. The network processed 25.6 billion financial transfers in 2014.

Article source: https://www.rt.com/business/340958-swift-banks-fruad-warning/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

“The Russian side has responded to the idea of restoring [Syrian] infrastructure. Therefore, a lot of deals were signed, including $675 million and $280 million agreements,” said the Syrian prime minister.

Damascus wants Russia to develop Syrian oil

According to al-Halqi, more than 60 percent of the power stations in Syria are shut down and need fuel to restart.

“Despite all the things Syria has undergone, it has managed to maintain the infrastructure. However, the production of electricity depends on fuel, and the oil sector has been more affected by terrorism than the electricity sector,” said the prime minister.

Syria has offered Russia a chance to participate in exploring and developing oil and gas on land and offshore. In particular, Russia was invited to upgrade the Baniyas refinery and construct a refinery with Iran and Venezuela.

Damascus is also ready to discuss payment in national currencies with Russia. At the moment, Syria is negotiating a free trade zone with Russia, Belarus and Kazakhstan, if the treaty is signed and trade reaches a certain level, Damascus will then begin to pay in local currency.

Al-Halqi added Syria and Russia intend to open a bank to facilitate transfers between the countries. The bank would be controlled 50-50 by the countries’ central banks.

As for trade, Syria is interested in promoting Russian goods in the Middle East. “Syria has geographical advantages, making it capable of becoming a developed commercial and industrial center for Russian companies in Middle East markets,” said al-Halqi.

Speaking about Syrian exports to Russia, he said that in the first quarter of 2016 Syria sold more goods to Russia than in all of 2015.

Article source: https://www.rt.com/business/340942-syria-russia-restoration-works/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

“The Russian side has responded to the idea of restoring [Syrian] infrastructure. Therefore, a lot of deals were signed, including $675 million and $280 million agreements,” said the Syrian prime minister.

Damascus wants Russia to develop Syrian oil

According to al-Halqi, more than 60 percent of the power stations in Syria are shut down and need fuel to restart.

“Despite all the things Syria has undergone, it has managed to maintain the infrastructure. However, the production of electricity depends on fuel, and the oil sector has been more affected by terrorism than the electricity sector,” said the prime minister.

Syria has offered Russia a chance to participate in exploring and developing oil and gas on land and offshore. In particular, Russia was invited to upgrade the Baniyas refinery and construct a refinery with Iran and Venezuela.

Damascus is also ready to discuss payment in national currencies with Russia. At the moment, Syria is negotiating a free trade zone with Russia, Belarus and Kazakhstan, if the treaty is signed and trade reaches a certain level, Damascus will then begin to pay in local currency.

Al-Halqi added Syria and Russia intend to open a bank to facilitate transfers between the countries. The bank would be controlled 50-50 by the countries’ central banks.

As for trade, Syria is interested in promoting Russian goods in the Middle East. “Syria has geographical advantages, making it capable of becoming a developed commercial and industrial center for Russian companies in Middle East markets,” said al-Halqi.

Speaking about Syrian exports to Russia, he said that in the first quarter of 2016 Syria sold more goods to Russia than in all of 2015.

Article source: https://www.rt.com/business/340942-syria-russia-restoration-works/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Saudi Arabia to set up $2tn mega-fund for post oil era

Titled ‘Saudi Vision 2030’, the plan reveals budget, policy and regulatory changes which are to be realized over the next 15 years to help the country’s economy to survive beyond crude.

Over seventy percent of the country’s income comes from energy exports. With the plunge in crude prices Saudi Arabia ran a record deficit of over $90 billion in 2015.

Riyadh intends to raise its share of non-oil exports in non-oil GDP from 16 percent to 50 percent.

It aims to build a “prosperous and sustainable economic future” for the kingdom, according to the news release. It also gave details on privatization and the creation of what it called the “largest sovereign wealth fund in the world.”

“We will smooth the process of listing private Saudi companies and state-owned enterprises, including Aramco. This will require deepening liquidity in our capital markets, fortifying the role of the debt market and paving the way for the derivatives market,” the announcement said.

The kingdom plans to sell less than five percent of the state-owned Saudi Aramco oil company. Deputy Crown Prince Mohammed bin Salman said the company is valued above $2 trillion.

Part of the Aramco share sales would go directly towards creating the world’s largest sovereign wealth fund, according to bin Salman.

Saudi Arabia’s construction sector hit by spending cuts

The Public Investment Fund (PIF) aims to invest cash from the country’s oil and gas operations into other sectors and will eventually hold more than $2 trillion in assets.

Among the other reforms disclosed in the plan is the introduction of a new visa system, allowing expatriate Muslims and Arabs to work long-term in the kingdom.

They also include investing in digital infrastructure, mining, culture, education and the military.

The Saudi government is currently accelerating subsidy cuts and introduces more taxes, including a levy on luxury items and energy and sugary drinks as well as a value added tax. According to Prince Mohammed the step will bring the kingdom $100 billion a year by 2020.

Article source: https://www.rt.com/business/340858-saudi-economy-diversification-plan/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

US losing out to Russian wheat exports

Ros Agro said it will raise $250 million to fund investment to fill the gap left by reduced food imports from trade sanctions between Russia and Western countries.

The current controlling shareholder Vadim Moshkovich plans to purchase up to $100 million of newly issued global depositary receipts.

Ros Agro and its shareholders have been the biggest beneficiaries of Russia’s food embargo. The corporation’s stock price on the London Stock Exchange has almost tripled since August 2014, reaching $16.12 per share as of Monday.

The country’s leading food producer aims to build a pig breeding complex in Russia’s Far East as well as greenhouse facilities in central Russia and make acquisitions by selling UK-listed shares.

“The company is going to invest aggressively and grow,” said financial analyst Svyatoslav Arsenov as quoted by Bloomberg, stressing that the ruble devaluation had made the sector very attractive.

Russia, listed as the world’s ninth largest food manufacturer in 2013, reduced imports by nearly 40 percent to $26.5 billion two years ago, according to government data.

The government said it wants to strengthen the country’s food security and the agricultural sector, promising state support for farmers. Russia doesn’t produce enough dairy, fruit or vegetables, according to Russian PM Dmitry Medvedev.

“We have provided supplies of Russian-produced meat and meat products to the domestic market, having increased exports as well. We can feed not only ourselves,” said Medvedev earlier this month, adding that 222 billion rubles ($3.4 billion) had been invested in agriculture.

READ MORE:Russia to become world’s largest wheat exporter in 2016

According to government data, Russia’s imports of vegetables were valued at $1.7 billion in 2015 with agricultural output rising three percent.

Article source: https://www.rt.com/business/340833-russia-farmers-benefit-sanctions/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Argentina approves deal to end debt standoff with creditors

The payment was made using money from last week’s record-breaking $16.5 billion debt issue which marked the country’s return to global credit markets for the first time since 2001.

The issue of new bonds was approved by the Argentinian Senate last month as a way to pay off creditors who refused to participate in the country’s debt restructuring. Under the terms of the deal, the government had to pay $4.65 billion to US hedge funds.

Buenos Aires had previously reached a settlement with several bondholders for $250 million and €185 million.

“We have put a definitive close to this chapter,” Argentina’s Economy Minister Alfonso Prat-Gay told the media.

The country’s legal battle with its creditors goes back to 2005 and 2010 when Argentina suggested debt holders swap bonds at a steep discount of up to 70 percent off their par value. It was hoped the move would ease the country’s financial crisis following its 2001 default on $100 billion in bonds. While 93 percent of bondholders agreed on lesser-valued bonds, others, including some US hedge funds, refused to participate and went to court.

Argentina settles dispute with five bondholders

Unlike current Argentinian President Mauricio Macri, who made settling the dispute with bondholders a top priority for the country, the previous government of Cristina Fernandez de Kirchner refused to negotiate with the holdouts. Kirchner called them “vulture funds”, warning they would never get more than 30 cents on the dollar.

READ MORE: Argentina lodges appeal against ‘illegal’ US court ruling handing $5.4bln to creditors

“If you are at war long enough, it’s very difficult to shift to a mode of peace,” said a New York lawyer and the dispute’s mediator Daniel Pollack who played a central role in the final negotiations.

According to the US Attorney General and Federal Judge Michael Mukasey, Pollack “was capable of keeping some room for maneuvering when he needed it.”

“I think what he did was a real tour de force. I don’t think the case could have been resolved without him,” Mukasey added.

Article source: https://www.rt.com/business/340822-argentina-creditors-payments/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Kolomoysky and billionaire Gennady Bogolubov as well as their associates Alexander Yaroslavsky and Pavel Ovcharenko were accused by Tatneft of fraudulently taking money in 2009 the Russian company was entitled to for oil shipped to the Kremenchug refinery in Ukraine.

READ MORE: Poroshenko fires oligarch governor amid oil company standoff

The refinery was built in 1994, and in 2007 the Russian company lost control over the enterprise due to the alleged actions of former managers Kolomoysky and Yaroslavsky.

Kiev protégé allegedly behind Mariupol and Odessa massacres – leaked tapes

Tatneft stopped supplying oil to the refinery and went to the international courts, seeking more than $334 million in damages and interest from the businessmen.

According to the media, Friday’s order includes assets like a private jet, a boat and property in England and France. Kolomoysky’s French villa and another 50 acres in the Haute Savoie region were also named as part of the order.

It includes seizure of several of Bogolubov’s exclusive London properties, including a house on Belgrave Square near Buckingham Palace worth $5.7 million. The order permits the men to have as much as £5,000 ($7,190) in weekly living expenses, Bloomberg reports.

Ukraine’s President Petro Poroshenko made Kolomoysky the regional governor of Dnepropetrovsk. In 2015, Poroshenko stripped him of the job due to a conflict over the country’s biggest oil company Ukrnafta.

Kolomoysky’s companies own about 43 percent of Ukrnafta and the government controls just over half the shares.

Article source: https://www.rt.com/business/340636-kolomoysky-tatneft-property-seizure/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

No oil production freeze agreement after talks break down in Qatar

Saudi Arabia got a $3.3 billion boost. Even the countries not involved in the talks have benefited from the freeze fuss. The US got a $3 billion boost in two months with Canada earning an extra $1.5 billion before the talks came to an end without an agreement last Sunday.

Despite the failure to reach a deal in Doha, global energy firms collected $32 billion in extra revenue since the first rumors Saudi Arabia and Russia aimed to freeze output leaked, the data says.

Crude producers counted on market stabilization even if the output freeze deal wasn’t sealed, according to the agency. Brent crude gained nearly $10 per barrel to about $43 in the two month preceding the meeting in Doha.

READ MORE: Oil slips on failed Doha deal

Surging crude prices may have been the main reason why Saudi Arabia backed out of the deal which it initiated.

The discussions between the world’s major producers broke down after Riyadh rejected any deal until all the Organization of Petroleum Exporting Countries (OPEC) members including Iran joined the talks.

Iran says it has no plans of curtailing oil production before reaching pre-sanctions levels of four million barrels per day. Tehran had planned to send a delegation to Qatar, but pulled out the last moment.

OPEC members and other oil producers may meet in Moscow next month to try to reach an agreement on an output freeze. However, that may not happen if oil prices keep rising.

Article source: https://www.rt.com/business/340594-producers-profit-freeze-talks/?utm_source=rss&utm_medium=rss&utm_campaign=RSS