Industry Update

The world's biggest carmakers will gradually reopen plants in Europe starting next week, but with a focus on health and safety rather than production volume, as lockdown measures are eased in one of the regions hit hardest by the coronavirus pandemic. Volkswagen (VLKAF) said in a statement Wednesday that production of its passenger car brands will resume at plants in Zwickau, Germany and Bratislava, Slovakia starting the week of April 20, after a month-long shutdown. Other plants in Germany, Portugal, Spain, Russia and the United States will restart production the following week, with South Africa, Argentina, Brazil and Mexico expected to follow in May, the company said.

Source: https://edition.cnn.com/2020/04/16/business/volkswagen-restarting-production/index.html

Walt Disney World plans to stop paying wages to 43,000 workers in about a week while allowing them to keep their benefits for up to a year in what is the largest wave of furloughs since the theme park resort closed in mid-March because of the new coronavirus spread. Workers will be able to keep their medical, dental and life insurance benefits for the length of the furlough period, or up to a year. Seniority and wage rates will remain unchanged for the workers whose furloughs start April 19, according to a statement from the Service Trades Council, the coalition of unions representing the Disney World workers.

Source: https://gulfnews.com/business/disney-world-furloughing-43000-more-workers-due-to-virus-1.70937621

WeWork is suing SoftBank for abandoning a $3 billion share buyout and accusing the Japanese company of inventing reasons to back out of the plan, as financial pressure mounts and the Covid-19 pandemic worsens. The tender offer was part of a rescue package agreed to late last year, when WeWork's botched IPO left it teetering on the edge of insolvency — until SoftBank stepped in with the bailout, worth roughly $10 billion at the time. In a lawsuit filed in the Delaware Court of Chancery on Tuesday, the special committee of WeWork's board said SoftBank (SFTBF) and CEO Masayoshi Son are now suffering from "buyer's remorse."

Source: https://edition.cnn.com/2020/04/08/tech/wework-softbank-lawsuit/index.html

Bahrain-based Investcorp has announced that its European-based tech business has acquired German cybersecurity firm Avira Holding for $180 million. Investcorp Technology Partners acquired Avira, a multinational cybersecurity software solutions firm that services the OEM (Original Equipment Manufacturer) and consumer end markets, with over 500 million endpoints protected globally. Over its 30-plus year history, the Avira has developed particular strengths in anti-malware, threat intelligence and IoT solutions. Its software provides next generation security for users’ online identity, finances, and private data, protecting against viruses, malware, ransomware and other threats.

Source: https://www.arabianbusiness.com/technology/444852-baharins-investcorp-acquires-german-cybersecurity-company-firm-avira

Abu Dhabi headquartered NMC Health will come under administration. This means that a UK Court appointed administrator will oversee the immediate future of the troubled hospital operator. This follows breakdown in talks between NMC's new management and ADCB, the bank which has got exposures Dh3.6 billion with it. In a statement late on Wednesday, Faisal Belhoul, newly appointed Executive Chairman of NMC, said: “The Board of NMC Health has written to the [UK] court indicating that, notwithstanding strenuous efforts to address creditors’ concerns, it has not been able to secure their alignment and support and has been advised by its counsel that it is not in a position to oppose the application. “Accordingly, the board expects the company to be placed into administration in due course."

Source: https://gulfnews.com/business/banking/uaes-nmc-health-to-go-into-administration-1.1586364593583

The People’s Bank of China has raised its stake in Housing Development Finance Corp. to just over 1%. China’s central bank held about 17.5 million shares at the end of March, according to quarterly data filed by India’s biggest mortgage lender to exchanges. It is mandatory for companies to disclose shareholding of more than 1% at the end of every quarter. The PBOC held about 0.8% stake at the end of March 2019, Keki Mistry, vice-chairman and chief executive officer at the lender told BloombergQuint by phone. It has since raised its stake to more than 1% as of March this year, Mistry was cited as saying.

Source: https://www.bloomberg.com/news/articles/2020-04-12/china-central-bank-holds-1-stake-in-india-s-top-mortgage-lender

Apple and Google are partnering to help authorities track exposure to the coronavirus using Bluetooth technology. The two Silicon Valley giants will work on a platform to enable contact tracing, a measure that identifies people who have been exposed to the virus and who they have been in contact with, the companies announced Friday. The companies will first release interfaces built on existing public health apps in May that can work on iOS or Android systems, followed by a more comprehensive platform in the coming months to which users will be able to opt in.

Source:https://edition.cnn.com/2020/04/10/tech/apple-google-contact-tracing-technology/index.html

The UAE has officially proposed that the World Expo 2020 Dubai be moved to start on October 1, 2021, in light of the ongoing issues caused by the coronavirus pandemic. The request was made in a letter addressed to Dimitri S. Kerkentzes, secretary general of the Bureau International des Expositions (BIE). A statement from the BIE said: “In the letter, His Highness Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs & International Cooperation of the UAE, seeks the postponement of the World Expo following in-depth discussions by the Expo 2020 Dubai Steering Committee with the Organizer and the BIE on the impact of the Covid-19 pandemic and in solidarity with participating countries.”

Source: https://www.arabianbusiness.com/healthcare/444331-uae-officially-proposes-one-year-postponement-of-world-expo-2020-dubai

The fight to survive the Covid-19 crisis is pitting airlines across the globe against their grounded customers. Regulations in the U.S. and Europe generally call for carriers to offer passengers a refund if a flight is canceled, with exceptions for circumstances like bad weather. It happens in normal times, but country lockdowns have dissolved schedules for weeks, with airlines parking their fleets and guarding their cash as revenue withers. Their customers are flooding Facebook and Twitter to complain they can’t get their money back for canceled trips. Tamara Watts, from Northumberland, England, said she was due to fly to the U.S. for a family road trip through California, Nevada and Arizona, before jetting to New York and then home. With the pandemic spreading, the flights were canceled by the Dutch arm of Air France-KLM.

Source: https://www.bloomberg.com/news/articles/2020-04-04/cash-crunch-pits-airlines-against-customers-in-refund-disputes?srnd=premium-middle-east

The founder and CEO of Zoom has apologized to the video conferencing app's millions of users after coming under fire for a host of privacy issues at a time when it has emerged as a vital social and professional lifeline for many. “We recognize that we have fallen short of the community's -- and our own -- privacy and security expectations," Eric Yuan said in a blog post on Wednesday. "For that, I am deeply sorry. “Zoom will stop adding new features for the next 90 days and instead focus solely on addressing privacy issues, Yuan said.

Source: https://edition.cnn.com/2020/04/02/tech/zoom-ceo-apology-privacy/index.html