Major International Business Headlines Brief::: 15 August 2020

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Major International Business Headlines Brief::: 15 August 2020

 


 

 


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ü  Just Eat to stop using gig economy workers

ü  South Africa's Game re-enters budget clothing market after 15 years

ü  What to expect as China-US trade talks resume

ü  S.Africa's Woolworths warns annual profits could fall by 70%

ü  Amazon launches online pharmacy in India'

ü  Sibanye-Stillwater expects first-half profit on higher metals prices

ü  ‘Raise sick pay’ to lower virus health and economic risks

ü  Tongaat Hulett reports a narrower annual loss

ü  Tui: Holiday bookings for next summer jump 145%

ü  Exxaro reports jump in interim core earnings

ü  Nigeria's unemployment rate 27.1% in Q2 -NBS

ü  Kenyan central bank to hold next rate-setting meeting on Sept. 29

ü  Facebook’s former PR chief explains why no one is paying attention to your startup

ü  UK firm's solar power breakthrough could make world's most efficient panels by 2021

ü  UK travel firms say France quarantine move is 'devastating blow'

ü  Seven top oil firms downgrade assets by $87bn in nine months

 


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Just Eat to stop using gig economy workers

The boss of one of the world's biggest food delivery platforms has told the BBC he intends to end gig working at his company across Europe.

 

Jitse Groen, who runs Just Eat Takeaway, says he would rather run his company with staff who get benefits and more workplace protection.

 

It is the model he has used at the Takeaway.com part of the business he founded 20 years ago.

 

Gig workers have flexible hours but normally not benefits like holiday pay.

 

In many industries, coronavirus has made incomes more unsteady for these workers, as companies look to cut back on discretionary spending.

 

Asked if the pandemic had made him more sensitive to the difficulties gig workers face, Mr Groen said: "It's our intent not to have those in Europe."

 

He said he did not like the people his company relies on to deliver food from restaurants to have to endure tougher working conditions.

 

"We're a large multinational company with quite a lot of money and we want to insure our people," he said. "We want to be certain they do have benefits, that we do pay taxes on those workers."

 

Those workers have at least been busy since coronavirus lockdowns began across Europe.

 

In the company's three biggest European markets - the UK, Germany and the Netherlands - orders rose 34% to 149 million in the first half of this year compared with the same time in 2019.

 

Mega mergers

Two huge mergers mean Just Eat Takeaway is set to be the world's biggest food delivery company outside China.

 

A $7.3bn deal with US rival Grubhub was announced in June, while Takeaway, founded by Mr Groen, completed a £5.9bn deal for UK based Just Eat in January.

 

Mr Groen says demand for his companies' services have recovered from an initial fall when Europe first went into lockdown, leading to a 30% fall in revenue.

 

"What we've seen in March is that our revenue actually dropped, because people were hoarding food at the supermarkets and were basically surrounded by a lot of food and therefore there was no need to order online," he said.

 

However, eating habits have since changed, with millions ordering food in because they weren't able to visit restaurants.

 

Mr Groen said: "If you're locked down in your house for two weeks, then you also want to eat something else, and so we saw an increase of demand from April onwards.

 

"And now we're actually growing much faster than we anticipated."

 

The Grubhub deal means that growth will accelerate even further, giving Mr Groen more to digest at a time when many companies are putting expansion plans on hold because of the pandemic.

 

He said the merger was "a logical thing" and while he would have liked more time between that deal and the Just Eat one, he said: "Let's be realistic, probably it would not have been possible in two years."

 

In the first six months of this year, Grubhub, which operates in 4,000 US cities, took an average of 581,700 orders a day.

 

That could mean Mr Groen hiring a lot more staff. At the moment, freelance delivery drivers take those meals from restaurants to customers.

 

He says: "We're still evaluating for instance Canada and of course later on we'll have to look at the US."

 

But it doesn't mean riders will necessarily lose the flexibility that many enjoy and some use to top up the salaries they get from a main job.

 

Mr Groen says there may be scope to keep the freelance model in some countries, if it is possible to pay insurance for them, but he said: "It is our intent to make the quality of life of these people a lot better than what it might be now."--bbc

 

 

 

South Africa's Game re-enters budget clothing market after 15 years

JOHANNESBURG (Reuters) - South African general merchandise retailer Game re-entered the clothing market on Friday after 15 years with the launch of a new range in 22 stores in hopes of boosting its profit and margins as part of a turnaround plan.

 

Game, owned by retailer Massmart, has been a drag on group profit as financially constrained customers prioritise spending on non-durables, such as food, over bigger-ticket items like appliances.

 

Still, Game’s fresh and frozen food category was underperforming, prompting Chief Executive Mitch Slape, who has said the business’s proposition was muddled, to move to replace it with a budget clothing range, dubbed Stylessentials.

 

“We are expecting a positive result in terms of our revenue streams from Stylessentials in the next year, as the range replaces our fresh and frozen offering,” Neville Hatfield, Game vice president of merchandise, said.

 

The clothing range will be available in all 122 stores across South Africa by July 2021.

 

Game Vice President Andrew Stein said the retailer had identified a gap in the market for seasonally relevant casual wear “that is designed with the South African consumer in mind” and has taken market trends into account.

 

The retailer’s launch of casual discount wear comes at a time when athleisure, t-shirts and sweat pants are the new best sellers across retailers, while suits, ties and formal dresses gather dust as the coronavirus forces people to work from home.

 

It also stands to benefit the retailer as consumers are cash-strapped and more price-conscious in the current environment.

 

 

 

 

What to expect as China-US trade talks resume

The US and China are due to resume trade talks in the coming days that last took place in January before tensions escalated.

 

The two economic superpowers have been embroiled in a trade war since 2018 that has damaged the world economy.

 

In January both countries agreed to ease restrictions imposed on imported goods from each another.

 

However, relations have become increasingly strained in the last six months over a wide range of issues.

 

US President Donald Trump has clashed with China recently over two Chinese apps, TikTok and WeChat, which could be banned in the US over national security concerns.

 

This is the latest sticking point between Washington and Beijing; others include China's new national security law for Hong Kong, communications firm Huawei and the origin of the coronavirus.

 

These clashes come on top of the already-sensitive trade relationship between the world's two biggest economies.

 

"Both sides will be doing a temperature check to see where things stand since January, and indeed they have a lot to talk about," Nick Marro, a global trade expert at the Economist Intelligence Unit (EIU) told the BBC.

 

"At the very least, we expect policymakers in Beijing to now be questioning their commitment to a trade deal that has done little to protect Chinese companies from US pressure."

 

While WeChat, TikTok and Huawei have all come under fire recently, the Trump administration has added dozens of Chinese companies to economic blacklists.

 

"The US government will take further measures to prevent US data from being stored on Cloud-based systems owned by Chinese firms as well as impacting upon the use of undersea cables connecting the US to the global internet," added Rajiv Biswas, a chief economist at London-based consultancy IHS Markit.

 

How did the trade war start?

US President Donald Trump has long accused China of unfair trading practices and intellectual property theft.

 

Meanwhile, in China there is a perception that America is trying to curb its rise as a global economic power.

 

The dispute led the US and China to impose tariffs, extra taxes on imports, on hundreds of billions of dollars' worth of goods.

 

This tit-for-tat trade war began in 2018 and involved tariffs of more than $450bn (£344bn) worth of imports. It has rumbled on ever since.

 

A breakthrough happened at the start of this year when both countries agreed to relax some restrictions on each other, referred to as "phase one" of the negotiations.

 

What was the "phase one" deal?

The agreement in January was seen as a "win-win" deal according to Chinese officials.

 

China pledged to boost US imports by $200bn above 2017 levels including agriculture goods by $32bn and manufacturing products by $78bn.

 

It also agreed to strengthen its intellectual property rules by taking more action against counterfeiting and trade secret theft.

 

In exchange, the US agreed to halve some of the new tariffs it has imposed on Chinese products.

 

While the majority of the border taxes remained in place, it was widely viewed as a thawing of trade tensions.

 

Where are we now?

Just over six months after the agreement came into effect, the landscape is very different. US-China relations are increasingly tense and global trade has been severely hampered by the virus pandemic.

 

"Given the wide range of differences between the US and China, it may be difficult to achieve further significant progress in the upcoming round of trade talks," added Mr Biswas.

 

China's commitment to buy at least $200bn more in US goods and services during 2020 and 2021 is one area of concern.

 

Even before the deal was signed, some trade experts said this was an unrealistic target. It has become more difficult with the coronavirus-driven slump in both the Chinese and US economies.

 

The virtual meeting is likely to see officials study Chinese and US trade data to determine whether the targets can still be met.

 

"Our baseline view is that the deal will remain intact after the meetings. It would be just too costly, for both sides, to terminate it now," added EIU's Mr Marro.--bbc

 

 

 

 

S.Africa's Woolworths warns annual profits could fall by 70%

JOHANNESBURG (Reuters) - South African retailer Woolworths said on Friday its profits for the 52-weeks to June 28 could plunge by as much as 70% due to the impact of the coronavirus crisis, high tax rate, and adoption of IFRS 16 accounting standards.

 

Woolworths said its headline earnings per share (HEPS) - the main profit measure in South Africa- would fall by between 60% and 70% compared to the 342.9 cents it reported a year earlier.

 

The owner of David Jones in Australia also impaired the carrying value of certain store assets, which will only negatively impact earnings per share and not HEPS.

 

 

 

Amazon launches online pharmacy in India

Online retail giant Amazon has launched an internet pharmacy in India, marking its entry into the country's online medicine market.

 

Amazon Pharmacy will make its debut in Bangalore and it may be trialled in other Indian cities.

 

The move comes as the online drugs business has been given a major boost during the coronavirus pandemic.

 

This year US technology giants have invested billions of dollars in the Indian economy.

 

The Amazon Pharmacy service offers prescription, over-the-counter and traditional Ayurveda medication as well as basic health devices.

 

“This is particularly relevant in present times as it will help customers meet their essential needs while staying safe at home," an Amazon spokesperson said.

 

Amazon started its move into pharmaceutical retailing in 2017. The following year it bought US-based home delivery medications startup PillPack.

 

At the end of last year, the company introduced its Amazon Pharmacy branding to PillPack's service.

 

In January, Amazon filed to trademark the name Amazon Pharmacy in the UK, Australia and Canada.

 

The move was seen as a sign that the company was set to significantly expand its prescription drugs business outside of the US.

 

US tech billions

 

In recent months India has seen billions of dollars of investment by US technology giants.

 

Earlier this year, Amazon's chief executive Jeff Bezos pledged to make major investments in India.

 

Speaking at a company event in New Delhi in January, he said the 21st Century is "going to be the Indian century".

 

Amazon has set ambitious plans for expansion in the world's largest democracy, where it has invested some $6.5bn (£5bn). Like rival US retailer Walmart, it sees major growth potential in the fast-growing economy.

 

In May, Amazon entered India's meal delivery business with a trial in four parts of Banglore.

 

Last month, Google became the latest big American player to invest in Indian conglomerate Reliance Industries' digital business.

 

The Alphabet-owned search engine agreed to pay $4.5bn for a 7.7% stake in Jio Platforms.

 

Reliance's billionaire owner Mukesh Ambani said the two companies would develop phones for 4G and 5G networks.

 

Also in July, Google said it would invest about $10bn in India over the next five to seven year, joining a list of new investors in Jio that includes Facebook, Intel and Qualcomm.--bbc

 

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Sibanye-Stillwater expects first-half profit on higher metals prices

JOHANNESBURG (Reuters) - South Africa’s Sibanye-Stillwater expects to swing to a profit in the first half of 2020, boosted by higher precious metals prices and a weaker rand currency, the miner said on Friday, sending its shares up sharply.

 

Shares in Sibanye, which said it remains positive about its performance in the second half of the year, were up 11.16% at 55.30 rand by 0836 GMT.

 

The precious metals producer, said headline earnings per share (HEPS) for the six months to June is expected to be 350 cents compared with a loss per share of 54 cents a year earlier when it was hit by strikes.

 

Sibanye said the inclusion of the Marikana operations, higher metals prices and a weaker rand currency helped partially offset foreign exchange losses and the impact of COVID-19 lockdown regulations on output.

 

“Supported by a better operational outlook than for H1 2020 and with precious metals prices having recovered close to levels prior to the global COVID-19 economic lockdown, the outlook for H2 2020 is positive,” Sibanye said.

 

South African gold miners have rallied as investors rushed to buy shares in the export-oriented companies which do well when the Rand depreciates against the dollar.

 

The company said production from its South African gold operations during the half-year increased by 17% 403,621 ounces, while platinum group metal (PGM) output from South Africa was 5%higher year-on-year at 657,828 ounces.

 

By the end of July the South African PGM operations had a production run rate of between 70% and 75%, with gold operations at around 90%.

 

Sibanye expects to release its half-year results on August, 27.

 

 

 

 

‘Raise sick pay’ to lower virus health and economic risks

Statutory sick pay should be increased and the furlough scheme extended on a flexible basis, new research suggests.

 

Doing so would better manage a "crude" trade-off between lives and livelihoods as the UK economy reopens.

 

These are two of the recommendations in a new report from the Royal Society.

 

It says economic and health data should be combined to produce the best economic outcome at the smallest loss of life. The government says it has already protected 9.6 million jobs.

 

The report by Professors Sir Tim Besley and Sir Nicholas Stern warns that an abrupt and premature easing of restrictions would lead to a second wave of infections that would mean both a higher death toll and ultimately a greater hit to the economy.

 

Flexible furlough

The report is published a day after data showed the UK suffered the biggest economic hit of the world's richest nations between April and June while also incurring the highest number of excess deaths to date in Europe.

 

It argues that as the furlough scheme - which has supported the wages of 9.6 million workers - is phased out, statutory sick pay of £95.85 a week is a major disincentive for workers to self-isolate.

 

This, in turn, makes efforts to successfully implement Track Trace and Isolate schemes almost impossible.

 

A review of sick pay policy along with the extension of a more flexible furlough scheme would help mitigate both health and economic risks.

 

'Targeted' help

The blanket phasing out of the current furlough scheme across all sectors by October is not sufficiently sensitive to the risks of a second wave of infections, the report argues.

 

"I think the furlough scheme in its current form is almost certainly going to have to be modified to be more targeted towards occupations that can't resume anywhere near their normal level of activity," said Sir Tim Besley, professor of economics at the London School of Economics and co-author of the report.

 

"If people are being asked to self-isolate they need to be cushioned against the economic consequences of that".

 

Professors Stern and Besley also recommend minimising the rotation of staff between different shifts and the introduction of subsidised workplace testing - particularly in sectors where close contact is hard to avoid.

 

Risk of repeat

Combining economic and health data to optimise policy response will require high quality data and the report encourages the gathering of more detailed information from financial institutions to track the economic impact of policy interventions.

 

Without it, the report says, the UK risks repeating its experience of suffering the worst of both worlds.

 

The government insists it has protected jobs and offered help to those needing it.

 

"We've protected more than 9.6 million jobs through the furlough scheme, supported more than two million self-employed people and paid out billions in loans and grants to thousands of businesses," a Government spokesperson said.

 

"And for those in most need, we've provided an unprecedented package of support including injecting £9.3bn into the welfare system, mortgage holidays and additional help for renters.

 

"We've also made sick pay payable from day one and will refund employers with up to 250 staff the cost of up to a fortnight's sick pay. Employers can, and many do, pay more than the statutory rate - something we encourage."--bbc

 

 

 

Tongaat Hulett reports a narrower annual loss

JOHANNESBURG (Reuters) - South Africa sugar producer Tongaat Hulett on Friday reported a narrower annual loss thanks to an improved performance at some of its operations and increased land sales, sending shares higher.

 

Tongaat, which processes sugarcane and maize, posted a headline loss per share from continuing operations of 211 cents for the year ended March compared with a loss of 1,226 cents per share in the same year-ago period.

 

Full-year revenue rose 18% to 15.4 billion rand boosted by improved performance in its sugar operations and good outcomes in its starch and glucose business, Tongaat said.

 

Shares in the company rose 6.4% by 0719 GMT to 5.45 rand.

 

The overall results, however, were weighed down by hyperinflation and the currency dynamics in Zimbabwe.

 

The company, which has been battling high debt, said it had sought a six-month extension on its debt repayments after a dispute over the potential 5.35 billion rand ($307 million)disposal of its starch and glucose operations to KLL Group, a wholly owned subsidiary of Barloworld.

 

Tongaat said there had been a potential risk it would not meet its end September 30 and December debt obligations.

 

The company said it now has until end September 2021 to achieve an 8.1 billion rand debt reduction commitment.

 

The agriculture and agri-processing company, which was embroiled in a financial scandal after revealing accounting irregularities in 2019, has been seeking to cut debt through selling assets, cutting jobs, raising equity and other measures aimed at boosting cash flow.

 

Tongaat, which did not declare an interim dividend, said its focus would be repaying debt before it reinstated dividends.

 

($1 = 17.4112 rand)

 

 

 

Tui: Holiday bookings for next summer jump 145%

Travel firm Tui has seen a sharp jump in bookings for 2021 as customers make early plans for next year.

 

The UK's largest tour operator said bookings for next summer were up by a "very promising" 145%.

 

News of a bounce-back came as Tui posted a €1.1bn (£995m) loss for the three months to June as lockdown brought the travel industry to a halt.

 

Tui's travel operations restarted in Europe, Mexico, the Caribbean and Egypt in mid-May.

 

Some of the new holiday bookings for 2021 are either amended bookings or holiday voucher bookings made by customers whose trips were cancelled as a result of the coronavirus lockdown.

 

In late July, Tui said it would shut 166 High Street stores in the UK and Ireland. Bookings plunged 81% for this summer and are 40% lower for a scaled-back winter programme.

 

And the industry's hopes of saving the rest of this summer were dealt a blow with new restrictions travel to Spain, and growing worries that France could be put on a quarantine list.

 

But Tui said on Thursday it was now seeing "encouraging signs of customer demand" as travel restrictions globally start to ease.

 

Some travellers who have skipped holidays this summer or opted for staycations have said they intend to splash out on foreign breaks this Christmas and next summer.

 

Last month, travel firm Kuoni said bookings for December departures to Barbados were 30% up on the same point last year, while demand for the Maldives has increased by 20%.

 

Tui also said it had agreed compensation with aircraft maker Boeing over the prolonged grounding of 737 Max planes.

 

The travel firm is to receive "staggered" compensation over the next two years, credits against future orders and a deferral of 61 aircraft deliveries. The exact amount of compensation has not been disclosed.

 

Raising funds

Tui also said on Thursday it had raised more money to help it weather the coronavirus crisis and cope with the winter, when travel bookings typically drop.

 

The Germany-based travel firm said it had agreed a second loan package with the German government worth €1.2bn, which would give it a total cash flow of €2.4bn.

 

At the same time, Tui said it was also looking to cut costs by 30% across the firm.

 

Julie Palmer, partner at Begbies Traynor, said it will be a "difficult path to recovery" for the travel industry.

 

"The travel giant has been forced to put its hand out for a bailout from the German government to help stay afloat, but it will need to address the concerns that consumers will have when travelling again, while trying to offer a unique experience amidst social distancing measures if it's going to stand any chance of recovery," she said.

 

"Costs reductions must be a focus for the board over the next few months if the business is to have any chance of survival, which will likely add to the growing number of redundancies being made by UK firms."

 

Tui and other firms were this week criticised by consumer group Which? for being slow to refund travellers for flights and package holidays cancelled since March.

 

And in July, the airline regulator, the Civil Aviation Authority (CAA), said it was "not satisfied" that Tui, Virgin Atlantic and Ryanair were processing refunds quickly enough.

 

Which? said that despite the intervention from the CAA, refunds are still too slow and airlines are "falling short" of promises made to the regulator.--bbc

 

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Exxaro reports jump in interim core earnings

JOHANNESBURG (Reuters) - South African coal company Exxaro Resources reported a 40% jump in core earnings due to higher coal exports and a favourable exchange rate offsetting one-off items.

 

Exxaro said earnings before interest, tax, depreciation and amortisation (EBITDA) for the six months to June 30 rose 40% to 3.929 billion rand ($224.9 million), boosted by higher commercial coal revenue offsetting higher costs.

 

Higher coal revenue was mainly driven by increased volumes of sales to power utility Eskom and a 39% rise in export volumes during the half-year, it said.

 

“Despite sustained global and domestic economic headwinds, compounded by market challenges and COVID-19, Exxaro maintained a resilient financial and operational performance, continuing our positive trajectory year-on-year,” Chief Executive Mxolisi Mgojo said.

 

However, headline earnings per share (HEPS) fell 24% to 13.21 rand ($0.7561) per share, compared with 17.30 rand a year earlier.

 

HEPS were impacted by the recognition of non-controlling interest charge of 1.224 billion rand for external shareholders of Eyesizwe RF, a special purpose private company that holds a 30% shareholding in Exxaro.

 

Coal production increased by 7% to 1,495 kilotonnes, mainly due to its Belfast and Grootegeluk mines.

 

The coal miner was deemed an essential service during South Africa’s lockdown, which lasted from late March to the end of May.

 

($1 = 17.4720 rand)

 

 

 

Nigeria's unemployment rate 27.1% in Q2 -NBS

LAGOS (Reuters) - More than a quarter of Nigeria’s workers were not in the labour force in the second quarter of this year, the National Bureau of Statistics said on Friday, in the country’s first unemployment data published since 2018.

 

The unemployment rate stood at 27.1% in the second quarter.

 

It stood at 23.1% in the previous report, which dates back to the third quarter of 2018.

 

Second-quarter unemployment among young people aged 15-34 was the highest at 34.9%.

 

Nigeria has been hard-hit by the fallout from the new coronavirus pandemic, grappling not only with its own outbreak, but also from a plunge in oil prices after lockdowns worldwide.

 

The country had 48,116 confirmed cases and 966 deaths as of Friday.

 

Nigeria entered the pandemic without having fully recovered from a 2016 recession that left more than 13 million people unemployed.

 

The World Bank has warned Nigeria faces a recession that will be “much more pronounced” than in 2016 and potentially the nation’s worst financial crisis in four decades.

 

 

Kenyan central bank to hold next rate-setting meeting on Sept. 29

NAIROBI (Reuters) - The Kenyan central bank’s Monetary Policy Committee will hold its next rate-setting gathering on Sept.29, the bank said on Friday.

 

At its last meeting in July, the bank left its benchmark lending rate unchanged for the third time in a row at 7.0%.

 

 

 

Facebook’s former PR chief explains why no one is paying attention to your startup

At TechCrunch Early Stage, I spoke with Coatue Management GP Caryn Marooney about startup branding and how founders can get people to pay attention to what they’re building.

 

Marooney recently made the jump into venture capital; previously she was co-founder and CEO of The Outcast Agency, one of Silicon Valley’s best-regarded public relations firms, which she left to become VP of Global Communications at Facebook,  where she led comms for eight years.

 

While founders often may think of PR as a way to get messaging across to reporters, Marooney says that making someone care about what you’re working on — whether that’s customers, investors or journalists — requires many of the same skills.

 

One of the biggest insights she shared: at a base level, no one really cares about what you have to say.

 

Describing something as newsworthy or a great value isn’t the same as demonstrating it, and while big companies like Amazon can get people to pay attention to anything they say, smaller startups have to be even more strategic with their messaging, Marooney says. “People just fundamentally aren’t walking around caring about this new startup — actually, nobody does.”

 

Getting someone to care first depends on proving your relevance. When founders are forming their messaging to address this, they should ask themselves three questions about their strategy, she recommends:

 

Why should anyone care?

Is there a purchase order existing for this?

Who loses if you win?

 

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UK firm's solar power breakthrough could make world's most efficient panels by 2021

British rooftops could be hosting a breakthrough in new solar power technology by next summer, using a crystal first discovered more than 200 years ago to help harness more of the sun’s power.

 

An Oxford-based solar technology firm hopes by the end of the year to begin manufacturing the world’s most efficient solar panels, and become the first to sell them to the public within the next year.

 

Oxford PV claims that the next-generation solar panels will be able to generate almost a third more electricity than traditional silicon-based solar panels by coating the panels with a thin layer of a crystal material called perovskite.

 

The breakthrough would offer the first major step-change in solar power generation since the technology emerged in the 1950s, and could play a major role in helping to tackle the climate crisis by increasing clean energy.

 

By coating a traditional solar power cell with perovskite a solar panel can increase its power generation, and lower the overall costs of the clean electricity, because the crystal is able to absorb different parts of the solar spectrum than traditional silicon.

 

Typically a silicon solar cell is able to convert up to about 22% of the available solar energy into electricity. But in June 2018, Oxford PV’s perovskite-on-silicon solar cell surpassed the best performing silicon-only solar cell by reaching a new world record of 27.3%.

 

The perovskite-coated panels will appear different too. Instead of the blue tint usually associated with traditional silicon panels, Oxford PV’s panels will appear black and blend in better with rooftop slates.

 

 

The crystal was first discovered by a Russian mineralogist in the Ural mountains in 1839 but for the last 10 years scientists around the world have been locked in a race to engineer the mineral to help generate more renewable electricity at a lower cost.

 

Dr Chris Case, the chief technology officer at Oxford PV, said using perovskite represents “a true change” for solar technology, which has remained relatively unchanged since the silicon-based panels developed in the 1950s.

 

“Silicon has reached its culmination of capability,” he said. “There are residual improvements to be made, and cost of production opportunities, but from a performance standpoint it is at its efficiency limit. The perovskite material is something totally innovative for solar.”

 

The company won £100,000 of funding from the UK government in 2010, before attracting equity investment from Norwegian oil giant Equinor, Legal & General Capital and the Chinese renewables giant Goldwind.

 

Frank Averdung, Oxford PV’s chief executive, said the company will be able to steal a march on the first commercially available solar panels which use perovskite to improve solar generation against the company’s rivals.

 

“There are other companies working on perovskite, of course, and these other companies will eventually have a commercial focus, but none of these companies has the same focus on the combination of silicon and perovskite which we do,” he said.-theguardian

 

 

 

 

UK travel firms say France quarantine move is 'devastating blow'

Airlines and holiday firms have warned the sudden change to UK quarantine rules on travel to France is a “devastating blow” to the industry and will lead to job losses.

 

France was removed from the government’s list of travel corridor destinations late on Thursday night along with the Netherlands, Malta and others. The move takes effect from 4am on Saturday.

 

At least 100,000 British holidaymakers are thought to be in France and many more will have planned to travel there later this summer.

 

Airlines UK, which represents the biggest carriers operating out of the country, said the decision was “another devastating blow to the travel industry already reeling from the worst crisis in its history”.

 

It urged the government to bring in a new testing regime and change its approach to quarantine to end its “broad-brush, weekly stop-and-go changes to travel corridors at a national level, which have proven so disruptive to airlines and passengers alike”.

 

If you have been affected or have any information, we'd like to hear from you. You can get in touch by filling in the form below, anonymously if you wish or contact us via WhatsApp by clicking here or adding the contact +44(0)7867825056. Only the Guardian can see your contributions and one of our journalists may contact you to discuss further. 

 

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The travel association Abta said the news would result in livelihoods being lost unless the government could help the industry. A spokesman said: “The announcements relating to Spain and now France impact the two biggest destinations for British holidaymakers at the height of the summer season. At this time of recession, a plan is urgently needed to protect the 221,000 jobs the travel industry sustains.”

 

The London-based World Travel & Tourism Council accused the UK of “lagging behind other countries” in imposing quarantine rather than better testing measures, saying: “While we agree public health should remain the top priority, this move will crush what little confidence there is left in the fragile travel and tourism sector.”

 

The British Ports Association said it was “extremely disappointing news” that would cause much disruption and hit passenger operators hard. Globally, the pandemic has already cost the travel industry close to £250bn between January and May, three times the industry’s total bill for the global financial crisis of 2008, according to figures from the UN World Tourism Organization.

 

 

Foreign Office travel advice warns against non-essential travel to France, which has reported a 66% rise in new coronavirus cases, and the Netherlands.

 

The consumer association Which? said thousands of customers following that advice were likely to be left significantly out of pocket, with some airlines refusing to issue refunds if outbound flights continue operating.

 

The transport secretary, Grant Shapps, who himself was forced into quarantine when Spain was taken off the travel corridor list at the start of his holiday almost three weeks ago, defended the system and the sudden change to the rules on France.

 

He told BBC Radio 4’s Today programme: “With a 66% increase in the last week, we must act. There is no perfect way to do this. People will have gone away knowing there is a significant risk; with their eyes open. A lot of people will have amended their holidays or already come home.”

 

He said temperature checks on asymptomatic travellers would pick up only 7% of cases: “There isn’t such a clear-cut solution as people would imagine.”

 

Labour said it backed evidence-based measures but Nick Thomas-Symonds, the shadow home secretary, added: “It’s vital that the government has a joined-up strategy and recognises the impact of this on travel-related businesses. It is vital that a sector-specific deal is put in place urgently.”

 

Eurotunnel advised people not to arrive at the Calais shuttle terminal without a booking, because it was already at capacity for the weekend and queues and disruption would result. Ports also warned of “logistical challenges” as people scrambled to return by ferry.

 

Ferry operators DFDS and P&O said there was a huge increase in demand and urged passengers to rebook crossings online rather than turn up, although they said they would make some additional capacity available.--theguardian.com

 

 

 

Seven top oil firms downgrade assets by $87bn in nine months

The world’s largest listed oil companies have wiped almost $90bn from the value of their oil and gas assets in the last nine months as the coronavirus pandemic accelerates a global shift away from fossil fuels.

 

In the last three financial quarters, seven of the largest oil firms have slashed their forecasts for future oil market prices, triggering a wave of downgrades to the value of their oil and gas projects totalling $87bn.

 

Analysis by the climate finance thinktank Carbon Tracker shows that in the last three month alone, companies including Royal Dutch Shell, BP, Total, Chevron, Repsol, Eni and Equinor have reported downgrades on the value of their assets totalling almost $55bn.

 

The oil valuation impairments began at the end of last year in response to growing political support for transition from fossil fuels to cleaner energy sources, and they have accelerated as the pandemic has taken its toll on the oil industry.

 

Lockdowns have triggered the sharpest collapse in demand for fossil fuels in 25 years, causing energy commodity markets to crash to historic lows.

 

The oil market collapse, which reached its nadir in April, has forced companies to reassess their expectations for prices in the coming years.

 

BP has cut its oil forecasts by almost a third, to an average of $55 a barrel between 2020 and 2050, while Shell has cut its forecasts from $60 a barrel to an average of $35 a barrel this year, rising to $40 next year, $50 in 2022 and $60 from 2023.

 

Both companies slashed their shareholder payouts after the revisions triggered a $22.3bn downgrade on Shell’s fossil fuel portfolio and a $13.7bn impairment on BP’s oil and gas assets.

 

Andrew Grant, Carbon Tracker’s head of oil, gas and mining, said the coronavirus had accelerated an inevitable trend towards lower oil prices – a trend that many climate campaigners have warned will lead to stranded assets and a deepening risk for pension funds that invest in oil firms.

 

 

“Covid-19 has certainly done its bit in wiping out value from oil companies’ books, but it’s clear that it has also accelerated a trend of companies changing their longer-term price assumptions to better reflect the realities of the energy transition,” he said.

 

In the last financial quarter of 2019, the French oil company Total and Spain’s Repsol both pointed to government climate policy as the reason for oil valuation downgrades totalling $6.2bn.

 

“The fact that major European players are writing down assets with reference to the Paris agreement is a very positive shift,” Grant said. “Setting impairment prices in line with a conservative estimate of future fossil fuel demand based on the Paris agreement can only help to avoid wasted capital and increase companies’ resilience.”

 

BP revealed its steep asset valuation downgrade and its first dividend cut in a decade alongside an ambitious new plan to shift its energy portfolio from fossil fuels to low-carbon alternatives. By the end of the decade BP expects to produce 40% less oil and gas, and it is increasing its spending on clean energy tenfold, in a move welcomed by green groups and investors alike.

 

“However, there are laggards,” Grant said. “US oil majors don’t disclose their price assumptions and made little mention of climate change in their quarterly filings. Neither ExxonMobil nor ConocoPhillips have reported any material impairments this year, suggesting management is hanging on to an optimistic view of the oil price.”

 

Norway’s state oil company, Equinor, has broken ranks from its European peers by sticking to its long-term forecasts for the price of Brent crude at $80 a barrel – “the highest by some way,” Grant said.

 

“Stubbornly sticking to business-as-usual price forecasts may lead companies to misallocate capital to the detriment of their investors,” he added.--theguardian.com

 


 


 


 

 


 

INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Lafarge

AGM

Virtual

18 August 2020  | 12pm

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of Faith Capital (Pvt) Ltd for general information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from sources believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and sourced from third parties.

 


 

 


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