SINGAPORE (Sept 2): “What Elon Musk wants to produce is a lifestyle. We are not interested in a lifestyle. We are interested in proper solutions that will address climate problems.” — Masagos Zulkifli, Singapore’s minister for environment and water resources, rebutting Tesla boss’ criticisms that Singapore is slow to adopt electric vehicles.
Hyflux denies deal with Utico — in yet another clarification
Distressed water treatment company Hyflux has denied news reports saying it has signed a $535 million restructuring deal with Utico. This is the fourth time Hyflux has been compelled to respond and clarify statements released by United Arab Emirates-based utility provider Utico.
In a late Aug 28 evening filing with the Singapore Exchange, Hyflux says there are “certain final outstanding issues”, and that both parties are in “highly advanced discussions”. The company also says it hopes to finalise and enter into a definitive agreement as soon as possible.
On Aug 5, Hyflux clarified that Utico’s deadline to reach a restructuring deal was not Aug 16, as the latter reportedly told the media, but Aug 26. The statement came after Utico clarified the matter with Hyflux, saying that it would take into account the intervening public holidays in August.
On July 17, Hyflux issued a statement clarifying that the potential deal with Utico would consist of a $300 million equity injection and $100 million shareholder loan. This is on top of Utico’s intention to offer the cash equivalent of a 4% stake in an enlarged Utico group, which Hyflux said had not changed from their previous joint announcement.
The clarification was in response to media reports quoting Utico as saying that the equity valuation of Hyflux was set at $340 million, though the total deal value could be estimated at $535 million — higher than an earlier failed rescue deal worth $530 million led by Indonesian company SM Investments. Hyflux explained that Utico had assessed the deal value based on assumptions that all approvals had been obtained, and that the current commercial terms being negotiated with creditors were accepted at $535 million.
A couple of months before that, Utico had said small investors in Hyflux who invested between $2,000 and $3,000 could get a 50% cash redemption, along with full redemption opportunity. Meanwhile, the rest of the investors could get a similar, but staggered and cascade, deal.
On May 28, Hyflux clarified that the part-cash and full redemption “with a plan and exit option” were merely “exploratory in nature” and “approaches” that Utico was contemplating at the time. Hyflux explained that these offers were part of “high-level views”, which entailed no conclusive numbers or percentages. It also entailed no binding agreement, in respect of the perpetual security holders and preference shareholders or any other stakeholder groups. — By Jeffrey Tan
China will not retaliate against newest US tariffs
China has indicated that it would not be immediately retaliating against the latest US tariff increase announced by President Donald Trump, and would instead prefer to focus on discussing removing the extra duties. “China has ample means for retaliation but thinks the question that should be discussed now is about removing the new tariffs to prevent escalation,” Ministry of Commerce spokesman Gao Feng told reporters in Beijing on Aug 29. Gao said both sides were discussing the planned trip in September by Chinese negotiators to Washington, DC, though he provided no details.
Higher tariffs on Chinese exports to the US are due to come into force on Sept 1, as well as some retaliatory measures from Beijing. China’s retaliation last week to an
earlier US tariff hike led to yet another hike from Trump, who said existing 25% tariffs on some US$250 billion ($347 billion) in imports from China would rise to 30% on Oct 1. “Escalation of the trade war won’t benefit China, nor the US, nor the world,” Gao said. “The most important thing is to create the necessary conditions for continuing negotiations.”
UK edges closer to no-deal Brexit
Market observers warn of a deterioration in the UK’s economic outlook, after Prime Minister Boris Johnson’s move to suspend Parliament from mid-September. The pound nosedived against the euro and US dollar, following the news. Opposition leader Jeremy Corbyn is now under pressure to table a no-confidence vote against Johnson, when members return from recess on Sept 3. Observers have also pointed out, however, that Corbyn’s anti-business rhetoric and high tax policies would do the UK economy no favours.
On Aug 28, Queen Elizabeth II approved Johnson’s request and Parliament will sit again only after five weeks, on Oct 14, days before the European Union leaders’ summit in Brussels, and a fortnight before the UK is due to leave the EU. Parliament was due to sit on Oct 9, after party conferences. Johnson’s move has been slammed by MPs as a tactic to push the UK to a hard exit from the EU, as it limits the amount of time available to debate a Brexit deal. Johnson has sought to assure his colleagues, however, that there will be sufficient time to debate the issue, telling the UK media that the suspension allows for a new Queen’s speech to set out legislative priorities, including the national healthcare system and fighting crime.
HK bans weekend protest, PLA troops rotate in
Hong Kong police have banned a mass protest planned for Aug 31, citing the risk of violence. According to a report in the South China Morning Post, the organiser of the rally, Civil Human Rights Front, has planned for the protest to take place on a day marking the fifth anniversary of the announcement of a restrictive electoral reform package by Beijing that was eventually rejected by Hong Kong. Protestors were planning to gather at Central in the afternoon and march to the Beijing liaison office. They are calling for genuine universal suffrage, instead of the pre-vetted candidates for the city’s Chief Executive post. There are concerns that the ban, the first time the organiser has had an event cancelled, would only exacerbate tensions and spark violence.
Separately, in the early hours of Aug 29, China’s military rotated its troops in Hong Kong, in an ostensibly routine move. On Aug 27, Hong Kong Chief Executive Carrie Lam told reporters that there was no need to call in the Chinese garrison to maintain order.
Apple apologises for retaining Siri recordings
Apple has apologised for privacy breaches in relation to its Siri voice assistant, and said it would no longer retain audio recordings of Siri interactions, among other changes. The announcement follows criticism of the iPhone maker, and other technology giants, for employing humans to listen to recordings of user interactions with voice assistants in a bid to improve the product.
Apple reportedly had hundreds of contractors listening to Siri in a process called “grading”, but the company suspended the programme a few weeks ago after some consumers raised concerns. It plans to reinstate the practice after making a few changes in software updates that will give users more control over their privacy.
Earlier this year, Bloomberg News reported that Amazon.com and Apple had teams analysing recordings. The Guardian reported in July that some of the people reviewing the Siri requests heard private personal details and possibly criminal activity. Amazon, which still has teams auditing voice commands for its Alexa digital assistant, said earlier this month that it was letting users opt out of human review. Google has agreed to stop transcribing voice recordings in the European Union amid a German investigation. — Bloomberg LP
