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India’s TCS to take $125 mln hit to Q3 earnings over US lawsuit

Bengaluru (Reuters) – India’s Tata Consultancy Services (TCS) (TCS.NS) on Tuesday said it would make a $125 million provision in its third-quarter results in relation to a trade secret lawsuit filed by U.S.-based Epic Systems.

Epic had filed the lawsuit against TCS in 2014, alleging the information technology (IT) services provider stole its intellectual property while it was contracted to implement Epic’s healthcare software.

The U.S. Supreme Court on Monday rejected TCS’ appeal against a verdict passed by the District Court of Wisconsin, the company said in a statement.

Epic had originally secured a $940 million award against TCS from a Wisconsin federal jury in 2016, in what was one of the biggest trade secret verdicts in U.S. history.

The following year, this was more than halved to $420 million – of which $140 million comprised compensatory damages and $280 million was punitive. This was based on a Wisconsin law that allows punitive damages of up to double the compensatory damages.

In a subsequent appeal by TCS, the punitive damages were lowered to $140 million in 2022.

The Tata group company then appealed the punitive damages, and the petition was denied on Nov. 20.

In its appeal to the U.S. Supreme Court against the punitive damages, TCS said it paid the compensatory “unjust enrichment award” after the first appeal, plus interest and costs.

The decision to make a provision in its results also comes amid a soft demand environment for IT services, as high inflation has led to clients tightening their wallets in key markets such as the U.S. and Europe through the last year.

Industry heavyweights such as Infosys (INFY.NS) and Wipro (WIPR.NS) trimmed their revenue forecasts last month, while TCS posted weak second-quarter results.

Muslim country group to push for Gaza truce -Turkish source

Ankara (Reuters) – A newly formed group of senior officials from several Muslim countries will visit the U.N. Security Council’s five permanent members and others to press for an immediate ceasefire in Gaza, a Turkish foreign ministry source said on Tuesday.

The group was formed earlier this month at a summit of the Arab League and Organisation of Islamic Cooperation (OIC) in Riyadh. It includes foreign ministers and representatives from Turkey, Qatar, Egypt, Jordan, Nigeria, Saudi Arabia, Indonesia, the Palestinian Authority, as well as the OIC Secretary General.

The source said the group had started talking with the permanent U.N. Security Council members – the United States, China, Russia, Britain, and France – with a visit to Beijing on Monday, and would also go to other countries.

“The primary goal of the contact group is for a ceasefire to be announced as soon as possible and for humanitarian aid to be sent to Gaza,” the source said.

“As an end goal, (the group) aims to contribute to the two-state solution within the framework of internationally accepted parameters, to Palestinians living in their own country safely, with stability and prosperity,” the person said.

Hamas leader Ismail Haniyeh, who is based outside Gaza, told Reuters on Tuesday the Palestinian militant group was nearing a truce deal with Israel, even as the deadly Israeli assault on Gaza went on and rockets were being fired into Israel.

Hamas’ Oct. 7 attack on Israel, the deadliest in Israel’s 75-year history, prompted an Israeli aerial blitz and invasion of Gaza. The campaign has killed at least 13,000 Palestinians, many of them children and women, and led to calls for a ceasefire or humanitarian truce.

Turkish Foreign Minister Hakan Fidan did not participate in the Beijing leg of the tour and will also miss the group’s trip to Moscow on Tuesday as President Tayyip Erdogan is on a visit to Algeria, the Turkish foreign ministry source said.

Fidan said on Monday he would join the next legs of the tour. He told Al Jazeera at the weekend that Muslim countries had, for now, decided to use “all diplomatic and humanitarian means” available to end the fighting in Gaza. He said Israeli attacks on the enclave must be stopped at the U.N. and other platforms with the efforts of like-minded countries.

The group will meet British Prime Minister Rishi Sunak and French President Emmanuel Macron during visits to Britain and France on Wednesday, the source said.

Separately, a group of 87 Turks, Turkish Cypriots and their relatives arrived in Turkey on Tuesday, after being evacuated from Gaza to Egypt, Turkish media reported. The foreign ministry source said Ankara aimed to evacuate another 100 people from Gaza on Tuesday, if conditions on the ground permit.

On Monday, nearly 200 evacuees from Gaza, including patients in need of medical care and their companions, arrived in Turkey.

Pakistan’s Imran Khan’s jail trial declared illegal – lawyer

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Islamabad (Reuters) – A Pakistani court on Tuesday declared the jail trial of former Prime Minister Imran Khan on charges of leaking state secrets illegal, his lawyer said.

A special court has been conducting the trial in jail citing security concerns since Khan was indicted on the charges last month.

“Islamabad High Court has declared illegal the notification for jail trial,” said Naeem Panjutha, the lawyer, in a post on social media platform X.

It was not clear whether the declaration meant the trial would be abandoned, or whether it would start from scratch in an open court. A court order is expected to clarify that.

Khan’s legal team had challenged the law ministry notification that ordered the jail trial.

The charges against Khan relate to a classified cable sent to Islamabad by Pakistan’s ambassador in the United States last year, which Khan is accused of making public.

Former cricket star Khan, 70, who was forced from office in 2022 after losing a no-confidence vote in parliament, has had dozens of legal cases filed against him.

He has been convicted in one graft case and sentenced to three years in jail. The sentence was suspended by a court to allow his release on bail but he remains in prison in connection with other ongoing cases.

Khan says the dozens of cases are aimed at keeping him out of politics ahead of February elections in view of his differences with the powerful military generals.

The military, which has ruled Pakistan directly for significant periods since independence in 1947 and wielded influence over civilian governments at other times, denies engineering Khan’s ouster.

The elections are scheduled for Feb. 8, 2024, when former three-time Prime Minister Nawaz Sharif, who returned from self-imposed exile last month, will find his biggest challenge is to wrest back supporters of Khan who, despite being in jail, remains popular.

PureHealth aims to list in Abu Dhabi in December

Dubai (Reuters) – United Arab Emirates-based healthcare platform PureHealth Holding said it plans to proceed with its long-awaited initial public offering (IPO) on the Abu Dhabi stock exchange (ADX).

No details about the potential size of the share offering, eligible investors, or a detailed schedule were provided in the company’s statement late on Monday, but a bourse listing is expected in December, subject to approvals.

Last November, a senior executive told Reuters the IPO could come in the first quarter of 2023 and raise more than $1 billion.

PureHealth is majority-owned by Abu Dhabi investment fund ADQ, with International Holding Company (IHC) (IHC.AD) also holding a stake. Both ADQ and IHC are chaired by Sheikh Tahnoun bin Zayed Al Nahyan, the national security adviser and a brother of UAE President Sheikh Mohammed bin Zayed.

It is the UAE’s largest healthcare provider but has plans to grow internationally.

Earlier this year, it acquired British hospital operator Circle Health Group from Centene (CNC.N) for about $1.2 billion including debt, and in May it completed its acquisition of Ardent Health Services, giving it a foothold in U.S hospitals and clinics.

IHC subsidiaries have previously listed on the ADX exchange to boost the market as part of a broader strategy to diversify the city-state’s economy away from hydrocarbons, deepen capital markets, and spur investment.

Mother of one of 28 Gaza babies moved to Egypt recounts her ordeal

Cairo/Gaza (Reuters) – Born prematurely in Gaza just before war broke out, the baby girl was treated at Al Shifa Hospital as it gradually collapsed, separated from her displaced family, then evacuated to Egypt on Monday along with her mother and 27 other Palestinian newborns.

Lobna al-Saik, the baby’s mother, was one of a few parents accompanying some of the 28 infants as they were taken in a convoy of ambulances from a hospital in southern Gaza, through the Rafah border crossing, into Egypt to receive treatment.

“They are innocent children, premature babies,” an exhausted al-Saik said in a video interview provided by the Egyptian government. “My message to the world is ‘enough’.”

Egyptian television footage showed medical staff at Rafah carefully picking up tiny babies from inside Palestinian ambulances and placing them in mobile incubators, which were then wheeled across a car park towards Egyptian ambulances.

The babies, from a total of 31 moved on Sunday from the besieged Al Shifa Hospital in Gaza City to a maternity hospital in Rafah, wore only nappies and tiny green hats. They were taken to Egyptian hospitals.

“Of those 31, 11 or 12 are critically ill, all the others seriously ill,” said Dr. Rick Brennan of the World Health Organization (WHO), in an interview with Reuters in Cairo.

“Each of them has serious infections and quite a few of them have a low body temperature and so they really do need detailed specialist care,” he said.

WHO Director-General Tedros Adhanom Ghebreyesus said 12 of the babies had been flown to Cairo.

The newborns have captured global attention since images emerged eight days ago of them lying side by side on beds at Al Shifa Hospital after their incubators were switched off for lack of power amid Israel’s military assault on Gaza City.

When doctors at Al Shifa raised the alarm about them, there were 39 babies. Since then, eight have died.

The story of al-Saik and her unnamed daughter provided some of the first personal details to emerge about the infants.

Al-Saik said just before the war started her baby had been receiving oxygen at Al Shifa because of breathing difficulties after her premature birth.

The family left their home on the third day of the war to escape Israeli bombardment. Like hundreds of thousands of others, al-Saik moved to the south of the Gaza Strip with her three other children, while the baby girl stayed at Al Shifa.

Family Torn Apart

With shortages of electricity, water, medicines and other basics, conditions at Al Shifa deteriorated and the baby lost weight and got sick.

“There was no milk and she kept getting worse, she was back to zero, to living on oxygen again,” said al-Saik.

The mother was reunited with her baby in Rafah, but to accompany her to Egypt, she said she had to leave her other children behind in Gaza.

“I didn’t even get a chance to hug them because I couldn’t leave my daughter in this state. I didn’t say goodbye to them. Something might happen to them, they could be bombed or martyred,” she said, her voice breaking as tears welled up.

Jeremy Hopkins, head of UNICEF in Cairo, told Reuters the agency was working with Egyptian authorities to find out the circumstances of each of the babies, including those who did not have relatives with them, so they could be provided with support beyond the immediate medical care.

Dr. Mohammad Salama, head of the neonatal unit at the Al-Helal Al-Emairati Maternity Hospital in Rafah where the babies spent Sunday night after arriving from Al Shifa, said the three who had remained behind were in a stable condition.

He said all 31 babies had been in a “catastrophic condition” when they arrived from Al Shifa and the hospital in Rafah had worked hard to stabilise them before their evacuation.

“Some were suffering from malnutrition, others from dehydration and some from low temperatures,” he told Reuters by telephone.

Salama said some of the babies were with their mothers, while others were accompanied by medical staff.

The war was triggered by fighters from Hamas who rampaged through southern Israel on Oct. 7, killing 1,200 Israelis, including children and babies, and abducting 240, according to Israeli figures.

Israel has responded with a relentless bombardment of Gaza and a ground invasion. At least 13,000 Palestinians, including 5,500 children, have been killed, according to health officials in the Hamas-controlled enclave of 2.3 million people. Three-quarters of Gazans have been made homeless by the war, according to U.N. figures.

Why calls for oil embargo on Israel are unlikely to go anywhere

London (Reuters) – Israel’s military offensive in Gaza that followed an Oct. 7 attack by the enclave’s ruling Islamist group Hamas has raised calls in the Middle East, particularly from OPEC member Iran, for using oil as a weapon to punish Israel.

The conflict has led many analysts, oil market watchers and politicians to draw parallels with the 1973 OPEC embargo, when Arab oil producers cut off oil exports to several allies of Israel, including the United States and Britain, following the Israeli-Arab war that year.

Analysts and OPEC sources, however, say that the energy world nowadays is far different from 50 years ago, playing down any possibility of a new embargo.

The Organization of the Petroleum Exporting Countries and its allies led by Russia, or OPEC+, meet in Vienna on Sunday to decide on output policy, and sources have told Reuters that additional output cuts are likely to be discussed.

Where Are Calls For Embargo Coming From?

Last month, Iranian Foreign Minister Hossein Amirabdollahian urged members of the Organisation of Islamic Cooperation (OIC) to impose an oil embargo and other sanctions on Israel and expel all Israeli ambassadors.

Four sources from OPEC, which produces a third of the world’s oil and includes several Muslim states including Iran, told Reuters at the time that no immediate action or emergency meetings were planned by the group in light of Iran’s comments.

On Sunday, Iranian Supreme Leader Ayatollah Ali Khamenei appealed to Muslim states that have normalised relations with Israel to cut them for at least “a limited time”, weeks after he called for an Islamic oil and food embargo on Israel.

During a joint summit between members of the OIC and the Arab League in Riyadh on Nov. 11, Muslim states did not agree to impose wide-ranging sanctions on Israel, as requested by Iranian President Ebrahim Raisi.

What Happened Back In 1973?

In 1973, Arab OPEC producers led by Saudi Arabia imposed an oil embargo on the United States in retaliation for its support for Israel in the Middle East war in October of that year. The embargo, and subsequent output cuts, soon added other countries as targets, including the Netherlands, Britain and Japan.

The embargo led to severe shortages with long queues forming at gas stations. The negative impact on the U.S. economy was significant.

The embargo led to a spike in oil prices, but over the longer term the crisis encouraged the development of new oil provinces outside the Middle East like the North Sea and deepwater assets, as well as alternative energy sources.

Why Is Another Embargo Unlikely?

While Western countries were the main buyers of oil produced by Arab countries a half century ago, nowadays Asia is the main customer for OPEC’s crude, accounting for about 70% of the group’s total exports.

“The geopolitical environment is different compared to 50 years ago,” one OPEC source said about why a new embargo was not in prospect.

“A 1970s-style oil embargo by the Gulf oil-producing states appears unlikely because two-thirds of GCC (Gulf Cooperation Council) oil exports today are purchased by Asian clients and, importantly, the economic transformation currently planned and implemented in the region requires a sustained absence of conflict,” JPM Morgan said in a note.

Morgan Bazilian, director of the Payne Institute, said the energy landscape has changed substantially over the past 50 years. “The U.S. is now the largest producer of oil and gas, and has a long-established strategic petroleum reserve.”

U.S. Democrats urge Biden to push Israel over Gaza humanitarian assistance

Washington (Reuters) – A group of U.S. President Joe Biden’s fellow Democrats urged him on Monday to encourage Israel to take immediate steps – including reopening a major border crossing – to help provide humanitarian aid for innocent civilians in Gaza.

“Eliminating the threat posed by Hamas and protecting civilians are not mutually exclusive aims. Indeed, International Humanitarian Law requires that civilians be protected during armed conflict,” a group of Democratic senators wrote in a letter to Biden.

The letter was led by Senators Tammy Baldwin, Tim Kaine and Chris Van Hollen, and signed by at least eight other Senate Democrats. The White House did not immediately respond to a request for comment.

The lawmakers sent the letter as Biden’s administration said it was nearing a deal to free some of the 240 hostages taken by Hamas militants during a deadly cross-border rampage from Gaza into Israel on Oct. 7.

About 1,200 people were killed in that assault, according to Israeli tallies. Since then Gaza’s government has said at least 13,300 Palestinians have been killed by Israeli bombardment. The United Nations says two thirds of Gaza’s 2.3 million people have been made homeless.

The crisis has divided Congress, prompting to date only about three dozen Democratic members to back calls for a ceasefire, which Israel rejects as something that let Hamas regroup.

Monday’s letter did not call for a ceasefire, but did note the dire humanitarian situation, including working toward the sustained delivery of water, food, fuel and other basic necessities, including by reopening the Kerem Shalom border crossing between Israel and Gaza, protection of civilians and civilian sites and ensuring civilians’ access to medical attention.

“We are concerned that increased and prolonged suffering in Gaza is not only intolerable for Palestinian civilians there but will also negatively impact the security of Israeli civilians by exacerbating existing tensions and eroding regional alliances,” the lawmakers wrote.

U.N. aid chief Martin Griffiths last week implored Israel to allow humanitarian aid into Gaza via the Kerem Shalom crossing.

Red Cross president meets with Hamas leader in Qatar

Geneva (Reuters) – The International Red Cross president travelled to Qatar on Monday to meet with the leader of Palestinian group Hamas to “advance humanitarian issues” related to the group’s conflict with Israel, the Geneva-based body said in a statement.

President Mirjana Spoljaric met with Ismail Haniyeh, the International Committee of the Red Cross (ICRC) said, and also met separately with Qatari authorities which are acting as mediators in the conflict.

The ICRC, a neutral intermediary which is providing aid to Gaza and has helped escort hostages and patients from the enclave, said that the meeting was part of discussions with all sides to the conflict to improve respect for international humanitarian law.

It added that it was not part of negotiations aimed at releasing more than 200 hostages seized by Hamas during their deadly incursion into Israel on Oct. 7.

WHO: planning under way to evacuate three Gaza hospitals

Geneva (Reuters) – The World Health Organization said on Tuesday three hospitals in Israeli-besieged northern Gaza had requested help with evacuating patients and that planning for that was under way, expressing regret that doing so would rob people of a lifeline.

Hospitals have come under bombardment in the Israel-Hamas conflict and all hospitals in the northern part of the enclave have effectively ceased functioning normally, although they continue to house some patients that could not flee and displaced Gazans.

“We’re looking at three hospitals right now in the north that asked to be evacuated but the important point is where to? There is no safe space,” WHO spokesperson Christian Lindmeier told a Geneva press briefing, saying that southern hospitals were already full and suffering shortages.

He said the requests came from hospital staff who feared for their lives.

“That means the situation on the ground has grown so dire that the only other alternative is facing what they think is certain death as the hospitals are under attack…,” he said.

“Taking away health care from people, is taking away the last resort, it’s taking away the last piece of humanity. And that’s what is happening right now.”

The three hospitals were Al Shifa, from which a group of babies has already been rescued, Indonesian Hospital and Al Ahli Hospital, he said. “So far it’s only in planning stages with no further details,” he added, saying it required close coordination with parties to the conflict to ensure the convoy does not come under fire as happened to the International Red Cross and French medical charity Medecins Sans Frontieres.

At the same briefing, the U.N. children’s agency (UNICEF) warned of the risk of “mass disease outbreak” that could cause child death rates to mount in the densely populated enclave where thousands of people are crammed into overcrowded shelters.

“If children’s access to water and sanitation in Gaza continue to be restricted and insufficient, we will see a tragic – yet entirely avoidable – surge in the number of children dying,” said UNICEF spokesperson James Elder.

Already, cases of diarrhoea in children under five years old have surged to 10 times the pre-conflict monthly average, he said.

The World Food Programme’s Arif Husain said that people in Gaza were receiving just 1-3 liters of water a day, far below international standards for emergencies. No bottled water has arrived for displaced people in northern Gaza for over a week, he said, raising serious concerns about dehydration.

Oil retreats on caution ahead of OPEC+ meeting

London (Reuters) – Oil fell on Tuesday, reversing steep gains made in the past two sessions, as investors turned cautious ahead of a meeting of OPEC+ this Sunday when the producer group may discuss deepening supply cuts due to slowing global growth.

Both contracts had climbed about 2% on Monday after three OPEC+ sources told Reuters that the group, made up of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, was set to consider whether to make additional oil supply cuts when it meets on Nov. 26.

Brent crude futures fell 35 cents, or 0.4%, to $81.97 a barrel by 1244 GMT, while U.S. West Texas Intermediate crude futures dropped by 36 cents, or 0.5%, to $77.47.

“No doubt that the upcoming meeting of OPEC+ energy ministers will be one of the most pivotal of recent times as investors are searching for clues whether the hints and rumours will be backed up by action,” said Tamas Varga of oil broker PVM.

Short-term speculators took profit on WTI after several indicators were overbought on technical charts, Singapore-based OANDA analyst Kelvin Wong said.

OPEC+ is likely to extend or even deepen oil supply cuts into next year, eight analysts have predicted.

RBC Capital analyst Helima Croft said: “We see some scope for the group to do a deeper reduction, but we would anticipate that Saudi Arabia would seek additional barrels from other members to share the burden of the adjustment.”

Oil has dropped about 16% since late September as crude output in the U.S., the world’s top producer, held at record highs, while the market was concerned about demand growth and economic slowdown.

The latest U.S. inventory reports are forecast to show crude and gasoline stockpiles rose last week, according to a Reuters poll on Monday. This week’s first report from the American Petroleum Institute is out later on Tuesday.