Companies

Western banks warn of risks in EU plan to grab Russian assets, sources say

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Western banks warn of risks in EU plan to grab Russian assets, sources say

Western banks are lobbying against EU proposals to redistribute billions of euros in interest earned on frozen Russian assets due to fears of costly litigation. EU leaders have agreed to work on a plan to use up to 3 billion euros a year to supply arms to Ukraine, funded by the interest from these assets. Banks are concerned about potential liability from Russia, the erosion of trust in the western banking system, and the legal implications of transferring money to Ukraine. Euroclear holds 190 billion euros of Russian central bank securities and cash, and more than 3.5 million Russians have frozen assets abroad worth around 1.5 trillion roubles. The EU plan includes paying a fee to Euroclear and allowing it to retain 10% of the profits as a safeguard against litigation. Ninety percent of the seized cash would be used to buy arms for Ukraine, with the rest for recovery and reconstruction. The proposal has raised concerns about the legal risks for banks and the potential for prolonged international legal disputes.

US takes on Apple in major antitrust lawsuit

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US takes on Apple in major antitrust lawsuit

The U.S. Department of Justice and 15 states, along with the District of Columbia, filed a lawsuit against Apple, accusing it of using its market power to drive up prices and harm smaller competitors. This marks a significant antitrust action by the Biden administration against Apple, which joins other major tech companies like Google, Meta Platforms, and Amazon that have faced similar lawsuits. The lawsuit alleges that Apple’s practices result in higher prices for consumers, developers, content creators, artists, publishers, small businesses, and merchants. Filed in U.S. federal court in Newark, New Jersey, the 88-page lawsuit aims to address Apple’s alleged anticompetitive behavior, particularly concerning its App Store’s commission fees and restrictions on third-party access to iPhone’s hardware and services. Apple has faced antitrust scrutiny and legal challenges in other regions, including Europe, Japan, and Korea, as well as from corporate rivals like Epic Games. Despite a legal challenge from Epic, Apple’s App Store commission structure has largely remained intact in the U.S., though a federal judge ordered Apple to allow alternative payment methods within apps. In response to new legislation in Europe, Apple plans to allow developers to offer their own app stores without commissions, though this move has faced criticism. The lawsuit also highlights complaints from consumer hardware firms about restricted access to iPhone’s sensors and chips, exemplified by Apple’s AirTags product and its exclusive control over contactless payment additions through Apple Pay. Apple defends its practices by citing privacy and security reasons.

BOCH shares gain on dividend news

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BOCH shares gain on dividend news

– Bank of Cyprus Holdings announced a 25c dividend and a €25 million share buyback.
– Shares traded at recent highs on the London and Cyprus stock exchanges.
– The share price on the London Stock Exchange opened at 307p and reached an intra-day high of 316p, the best since its listing at 285p on January 31, 2017.
– The share price hit its lowest at 39.6p on September 30, 2020, and recovered above 300p at the end of 2023.
– The closing trading price on Thursday was 309p/369c.
– The 25c dividend is based on €487 million in after-tax profits for 2023, marking the second reward to shareholders in over a decade.
– The CEO aims to increase the profit distribution to 30-50% over the next few years.
– The European Central Bank approved the cash dividend and share buyback.
– The total distribution for FY2023 amounts to €137 million, with a cash dividend of €112 million and a share buyback of up to €25 million.
– Last year’s profit distribution was €22 million.
– The cash dividend will be paid on June 14 to stockholders registered as of April 26, with BOCH trading ex-dividend as of April 25.
– The bank is considering alternatives to issuing dividend cheques to speed up the process.
– The share buyback will occur on both the London Stock Exchange and the Cyprus Stock Exchange, with two brokerage firms handling the transaction.
– The bank plans to give bonuses to about 30% of its staff, who also received 11% pay increases last year.
– Bank of Cyprus Holdings Chairman stated the distribution reflects the Group’s strong financial performance in 2023 and its commitment to delivering value to shareholders.

Apple accused of monopolising smartphone markets in US antitrust lawsuit

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Apple accused of monopolising smartphone markets in US antitrust lawsuit

The U.S. Department of Justice and 15 states filed a lawsuit against Apple, accusing the company of using its market dominance to inflate prices for its services and suppress smaller competitors. This legal action is part of a broader U.S. effort to regulate major technology companies. The lawsuit aims to challenge Apple’s business practices, which have historically involved charging premium prices for technology products and controlling the user experience. The Justice Department’s complaint focuses on restoring competition in the smartphone market, reducing prices for consumers, lowering fees for developers, and encouraging innovation. The lawsuit cites instances where Apple allegedly hindered competition, including issues related to messaging apps, smartwatches, and digital wallets. The Justice Department also referenced an email from Apple co-founder Steve Jobs indicating an intent to lock in developers and consumers to Apple’s payment systems. Apple responded by defending its business model, emphasizing the integration of hardware, software, and services in its products. The complaint seeks to prevent Apple from using its control over app distribution and other means to disadvantage rivals. Apple has faced similar antitrust challenges in Europe, Japan, Korea, and from companies like Epic Games. The U.S. Justice Department expressed confidence in its case, while Apple has argued that its restrictions on third-party developers are for privacy and security reasons. However, the Justice Department contends that Apple’s actions have sometimes reduced privacy and security. In Europe, new legislation has forced Apple to allow developers to offer their own app stores without paying commissions, although challenges remain in implementing alternative app stores. The lawsuit also examines Apple’s practices concerning hardware access and services like Apple Pay and iMessage.

Cyta defends data centre plans in House committee meeting

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Cyta defends data centre plans in House committee meeting

Telecommunications company Cyta is conducting a study on establishing a new data centre, with interest from ten companies. Cyta aims to find a strategic partner for the project, holding a 51% stake. An initial feasibility study was conducted but withdrawn for further scrutiny. Cyta approached 39 companies, with eight initially showing interest. The project focuses on sustainable development, including renewable energy sources. The Auditor General described Cyta as a healthy organization but criticized the previous board and highlighted issues with a submarine data cable project involving political connections. Cyta withdrew from this project due to changed financing terms, denying any political influence.

Parties favour legislation requiring insurance for doctors

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Parties favour legislation requiring insurance for doctors

The legislation introduced by Disy to the House health committee, which mandates insurance coverage for all doctors to practice in Cyprus, received favorable responses from political parties and stakeholders. This legislation aims to benefit both doctors and patients by ensuring doctors are covered against professional negligence. Currently, doctors within the national health scheme Gesy are covered, but private sector doctors are covered based on their contracts with private hospitals. However, there are many private doctors without insurance coverage. Issues regarding the amount and procedures of insurance coverage were discussed, with the Cyprus Medical Association and insurance companies expected to address these internally to issue specific regulations. Akel MP Marina Nicolaou expressed agreement with the principle of insurance coverage for all healthcare professionals but is awaiting answers to questions about doctors employed by the health ministry and not by the state health service (Okypy).

‘Wild West’ of neuroscience drives new laws on brain privacy

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‘Wild West’ of neuroscience drives new laws on brain privacy

U.S. neurologist Sean Pauzauskie has started using consumer headbands, designed to monitor sleep patterns or boost brain function, for capturing the brain activity of patients suffering from seizures. These headbands are cheaper and easier to use compared to traditional hospital equipment, and they capture similar electronic data. Advances in brain science have facilitated the capture and interpretation of detailed brain data flows, with some experiments showing the possibility of manipulating thoughts through neurological intervention. Researchers at the University of Texas have used AI to predict words running through a participant’s head based on electronic brain images. This technology has helped paralyzed patients communicate via brainwaves and assisted in rewiring dormant neural pathways after spinal injuries. Pauzauskie expressed both excitement for the insights this technology can provide and concern over the potential for abuse of brain data. Consequently, he joined a coalition advocating for privacy guarantees for brain data in Colorado, leading to legislation that passed the Colorado assembly and is now before the state senate. Similar bills are under consideration in Minnesota and California. The Colorado law would categorize neural data as “sensitive data,” requiring companies to obtain consent before collection and to allow customers to limit data use and request deletion. The United States lacks federal privacy laws specifically addressing neural data, and the Neurorights Foundation is working to enshrine rights for the brain globally.

Cyprus banks to maintain stability, but lower profits, says Moody, ’s

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Cyprus banks to maintain stability, but lower profits, says Moody, ’s

– Risks associated with loans for Cypriot banks are expected to decrease due to economic growth, declining inflation, and unemployment rates.
– Moody’s predicts a decline in bank profits from recent highs.
– A gradual decrease in net interest margins is anticipated due to rising deposit costs and falling interest rates, influenced by competition and high levels of private sector debt.
– Stricter loan criteria and loan restructuring efforts are improving loan quality and reducing problematic loans.
– Asset quality risks from foreclosed properties are diminishing, supported by a strong real estate market.
– The banking sector in Cyprus is characterized by a low loan-to-deposit ratio and ample liquidity reserves.
– Cyprus’ GDP is forecasted to grow by 2.8% in 2024 and 3.2% in 2025-27, outpacing the euro area by 0.8% in 2024.
– Economic growth is supported by diversification in the services sector and significant foreign direct investment projects.
– Moderate growth in the loan portfolio is expected due to the banking system’s saturation, high private sector debt, and elevated interest rates.
– Monetary policy is expected to remain restrictive, even with interest rate reductions by the European Central Bank.
– The NPE ratio is expected to decrease below 3% this year.
– The proportion of foreclosed assets relative to bank equity is decreasing, supported by the real estate market.
– Capital risks are declining, with banks completing risk release and balance sheet restructuring.
– The Common Equity Tier 1 ratio for assessed banks increased to 18.8% at the end of 2023.
– Moody’s assessment focuses on Cyprus’ two largest domestic banks, Bank of Cyprus and Hellenic Bank, which represent a significant portion of the banking system’s assets.
– The weighted average Baseline Credit Assessment of the two major banks is ba2, with a weighted average asset-based deposit rating of Baa3.

‘, A very big and increasing presence of Israeli businesses in Cyprus’

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‘, A very big and increasing presence of Israeli businesses in Cyprus’

The Israel Tax Authority (ITA) is investigating Israeli assets in Cyprus due to the increasing presence of Israeli businesses on the island. Cyprus’ finance ministry and accounting associations acknowledge this growth. Finance ministry spokesperson Michalis Papadopoulos stated that the ITA’s operation is a result of the increased presence of Israeli nationals in Cyprus but clarified that Cyprus is not directly involved in the operation. The head of the accountants’ association, Nikos Chimarides, mentioned the significant presence of Israeli businesses in sectors like fintech, investment, real estate, and foreign exchange trading in Cyprus and noted that these businesses do pay their taxes in Cyprus. However, he also highlighted the absence of a double tax treaty between Cyprus and Israel, which has been a longstanding issue. The ITA’s operation is part of a wider campaign against tax evasion and the black economy in Israel. The investigation involves analyzing travel patterns of businesspeople between Cyprus and Italy, examining offshore companies linked to Israelis, and leveraging information sharing agreements with several countries. It is estimated that between 10,000 to 20,000 Israelis reside in Cyprus.

Somali pirates’ return adds to crisis for global shipping companies

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Somali pirates’ return adds to crisis for global shipping companies

A speed boat carrying more than a dozen Somali pirates attacked a Bangladeshi-owned bulk carrier in the western Indian Ocean, taking the captain and second officer hostage. The ship, named the Abdullah, later anchored off the coast of Somalia. This incident is part of a resurgence of piracy in the region, with more than 20 attempted hijackings since November. The increase in piracy has led to higher costs for shipping companies due to the need for armed security guards, insurance coverage, and the potential for ransom payments. The Indian Navy recently intercepted and freed another hijacked ship, the Ruen, capturing 35 pirates and rescuing 17 hostages without injuries. The resurgence of piracy is attributed to a reduction in international naval operations off the coast of Somalia and the distraction provided by Houthi militia strikes in nearby waters. Somali President Hassan Sheikh Mohamud emphasized the importance of stopping piracy early to prevent it from escalating. The global economy suffered approximately billion in costs due to Somali pirate activities at their peak in 2011. The current rate of attacks is significantly less, but the threat persists, especially with the end of the monsoon season. Insurers have extended the area in which additional war risk premiums are imposed, and the demand for private armed guards has increased, driving up prices. No ransom payments have been reported for the recent hijackings, but negotiations have taken place. International efforts to combat piracy have been hampered by reduced naval patrols and the lapse of a U.N. resolution authorizing foreign vessels to patrol in Somali waters. Somali President Mohamud highlighted the need to bolster Somalia’s law enforcement capacity at sea and on land to contain the piracy threat.