Top reads on Fin24: Strike looms before Christmas, Steinhoff crisis worsens | Fin24
 
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Top reads on Fin24: Strike looms before Christmas, Steinhoff crisis worsens

Dec 20 2017 17:53

Cape Town - ICYMI: A roundup of Wednesday's must-read financial and economic news.

Strike looms at Shoprite Checkers just before Christmas

sHOPRITE

Retailers Shoprite and Checkers are due to be hit by nationwide strikes on one of the busiest shopping days before Christmas.

The South African Commercial‚ Catering and Allied Workers Union (Saccawu) and trade union Cosatu announced that 30 000 workers were planning to down tools at the supermarkets on Friday.

Saccawu is part of Cosatu. Checkers is part of Shoprite Holdings [JSE:SHP]

The planned one-day nationwide strike will include marches and protests across the country, said Cosatu spokesperson Sizwe Pamla. The strike was protected, Cosatu added.

Steinhoff's faces another lawsuit, while shares continue to drop

Beleaguered Stellenbosch-headquartered retail giant Steinhoff is now facing a German investor lawsuit, after losing more than 85% of its market capitalisation in two weeks. 

The suit was filed by German law firm TILP in Frankfurt on Tuesday. 

Steinhoff [JSE:SNH], whose shares fell by an additional 30% in early trade on Wednesday, has its primary listing on the Frankfurt Stock Exchange. 

In a media statement TILP said that since December 5 Steinhoff has lost over €10bn in market capitalisation, and as a result its shares were now trading as “penny stocks”. 

The firm said that it was of the legal opinion that Steinhoff made itself liable for damages after providing its shareholders with incomplete market information.

Minister calls on Hawks to investigate fake social media accounts

probe

Minister of Home Affairs Ayanda Dlodlo on Wednesday said she had approached the Hawks to investigate a suspected criminal syndicate operating on SA social networks, that had created fake social media accounts in her name and put out calls for bogus government deals.

In a statement the Department of Home Affairs said that last week a fake social media account bearing the minister’s name was created as a platform to solicit money for a “deal” worth R25m.

Massive cyber attacks slated for 2018

The past year's devastating cyber attacks could soon be dwarfed, with new and better coordinated attacks in 2018 looming large.

Cybersecurity firm Check Point said technology users should prepare for larger, orchestrated worldwide outbreaks as hackers devise new strategies to cash in on human errors. 

The firm provides end-to-end security for enterprises, cloud, and personal mobile devices, putting it at the coalface of fixing security breaches. 

The last year saw two massive cyber attacks, that cost both South African and global companies millions in damages.

Uber loses EU court battle

gavel,law,legal,court

Uber suffered a defeat when the European Union’s top court ruled its ride-hailing service should be regulated as a transport company, a decision that could set a precedent for the burgeoning gig economy.

The EU Court of Justice said on Wednesday that the startup should be regulated as a transport service when drivers aren’t professionals and are using their own vehicles. The company says most of its products are already covered by such regulations.

The decision, which can’t be appealed, clarifies for the first time that connecting people via an application to non-professional drivers forms an integral part of a transport service. It rejects Uber’s view that such services are purely digital.

In the EU judges’ view, “the most important part of Uber’s business is the supply of transport - connecting passengers to drivers by their smartphones is secondary”, said Rachel Farr, senior employment lawyer at law firm Taylor Wessing. “Without transport services, the business wouldn’t exist.”

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