Major International Business Headlines Brief::: 02 December 2020

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Major International Business Headlines Brief::: 02 December 2020

 


 

 


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ü  Slack sold to business software giant for $27.7bn

ü  UK among hardest hit nations by pandemic, says OECD

ü  Bitcoin peaks at record high close to $20,000

ü  Qualcomm: Android phones to get 'lucky number' Snapdragon 888 chip

ü  Debenhams set to close putting 12,000 jobs at risk

ü  Asian shares bounce on hopes for U.S. stimulus, vaccine

ü  Walmart axes $35 delivery minimum on website purchases for membership
program

ü  Hyundai Motor to launch dedicated EV platform in major push into electric
cars

ü  Biden would not act immediately to remove Phase 1 agreement with China:
NYT

ü  U.S. oil producer ConocoPhillips to shed up to 500 workers

ü  Nigeria: Buhari Appreciates Nigerians for Patience, Urges Use of Gas As
Alternative to Petrol

ü  Nigeria: Communities in Oil-Rich Niger Delta Pin Hopes On Shell Climate
Case

ü  Kenya: Pressure on Families as Cooking Gas Prices Set to Increase

ü  Ethiopia: How Digital Ethiopia 2025 National Strategy Reinforces Economic
Growth

 

 

 

 

 

 

 

 

 

 

 

 

 


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Slack sold to business software giant for $27.7bn

Salesforce has agreed to buy workplace messaging app Slack for $27.7bn
(£20bn) in what would be one of the biggest tech mergers in recent years.

 

Marc Benioff, boss of the business software giant, called the deal a "match
made in heaven".

 

He has been pushing to expand the company's software offerings and fend off
rivals such as Microsoft.

 

The acquisition comes as the pandemic has increased the focus on remote work
and tools, like Slack, which enable it.

 

Tech analyst Dan Ives of Wedbush Securities called it a "now or never"
purchase for Mr Benioff.

 

"If Salesforce wants to expand beyond its core gold mine of sales and
marketing departments 
 this was the moment and thus represents a major shot
across the bow against Microsoft," he wrote in a note to investors after the
deal was announced.

 

Slack, founded in 2009, has won a following with its group chats, which
offer an alternative to email.

 

When it listed its shares publicly in 2019, it was valued at roughly $20bn.

 

However, its shares sank after the launch and have missed out on the
stratospheric rise enjoyed by other tech firms this year.

 

The company, which had about 12.5 million users as of late March, has had
difficulty making inroads against Microsoft Teams, a similar product that
the tech giant unveiled in 2016 and now has more than 100 million users.

 

Choose your enemies wisely

Four years ago, Microsoft looked into buying Slack.

 

The deal never happened and Microsoft instead focussed on developing its own
platform. Microsoft Teams was created - a clear rival to Slack.

 

When a trillion dollar company like Microsoft looks to move into your
business - you should be worried.

 

Initially, Slack was confident of the challenge, even taking out a full page
advert in the New York Times welcoming the competition in 2016.

 

Looking back on it, it's hard to see that advert as any more than hubris.

 

Big Tech can kill smaller companies. Their sheer size and dominance in the
market makes them very hard to compete with.

 

Microsoft started flexing its muscle. It started bundling in Microsoft Teams
with its Office Software.

 

Microsoft Teams is now used by nearly 10 times as many people as Slack.

 

If Slack thought it was fun to have Microsoft as a competitor in 2016, it
definitely didn't in 2020.

 

Its legal challenges claim that Microsoft uses its heft to unfairly bully
the competition.

 

So, this acquisition should be seen in that context. Slack was being slowly
squeezed.

 

It has now been bought by a much bigger fish - it will be better placed to
compete with Microsoft.

 

But, there will be many who will use this case to lament the plight of
smaller tech companies, who simply can't compete with a handful of tech
giants.

 

Taking on a giant

The two companies hope that the tie-up will put them in a better position to
take on a number of enterprise software competitors, and in particular
Microsoft.

 

Microsoft's business applications have seen a massive surge as large numbers
of people shifted to work-from-home arrangements due to the Covid-19
pandemic.

 

Microsoft's business suite includes features that are similar to Slack's
messaging service.

 

The tech giant' CEO Satya Nadella remarked earlier this year that "We've
seen two years worth of digital transformation in two months"

 

Both Salesforce and Slack have had previous run-ins with Microsoft.

 

In 2016, Salesforce lost out to its bigger rival when it attempted to buy
the business-focused social media service LinkedIn.

 

This summer, Slack brought a competition complaint against Microsoft in the
European Union, saying the firm was abusing its market dominance by bundling
Teams into its other products.

 

Under the terms of the Salesforce deal, Slack shareholders are to receive
$26.79 in cash per share - roughly what they were worth at the beginning of
November, before rumours of the acquisition pushed the price per share to
more than $43 as of Tuesday. They will also receive some shares in
Salesforce.

 

The deal, which will be reviewed by Slack shareholders, is expected to close
next year.--BBC

 

 

 

 

UK among hardest hit nations by pandemic, says OECD

The UK economy will be among the hardest hit by the pandemic, a leading
international agency has suggested.

 

The Organisation for Economic Co-operation and Development (OECD) predicts
that by the end of 2021 it will be more than 6% smaller than before the
Covid health crisis.

 

Among the world's major economies only Argentina is predicted to do worse.

 

By contrast, the OECD predicts the global economy overall will be back to
pre-pandemic levels by then.

 

There is some cautious optimism for next year and beyond in this report, but
that is struggling against the immediate fact that there have been new virus
outbreaks and containment measures.

 

That is likely to lead to further declines in economic activity in the short
term in some countries, especially in Europe.

 

Nonetheless, the report says that for the first time since the pandemic
began there is now hope for a brighter future.

 

Recent vaccine developments are the reason.

 

"Progress with vaccines and treatment have lifted expectations and
uncertainty has receded."

 

But the uncertainty hasn't gone away, and even if the vaccine hopes are
fulfilled, there will be further economic strains, the report says, during
the wait for them to be widely distributed.

 

For Britain, the OECD predicts the economy will shrink in 2020 by 11.2%,
followed by growth of 4.2% and 4.1% in the next two years.

 

Unemployment will rise to an average of 7.4% in 2021, though as it is an
average the peak would likely be somewhat higher. Before the crisis, the
figure was below 4% so that's a large increase, though many other countries
are likely to see higher levels.

 

The report says it's important for the UK to conclude a trade deal with the
European Union by the end of the year. Failure to do so would, it says,
"entail serious additional economic disturbances in the short term and have
a strongly negative effect on trade, productivity and jobs in the longer
term".

 

Uneven

The OECD says the government and the Bank of England should maintain
policies to support the economy until a recovery is well underway.

 

For the world economy, the recovery predicted next year is uneven. A third
of the global growth is down to China, which by the end of next year is
forecast to be almost 10% ahead of where it was at the end of 2019.

 

The rich countries will rebound in 2021 but it will be only a partial
recovery from this year's recession.

 

Among the major developed economies, only the US is forecast to be ahead of
pre-pandemic levels by the final quarter of next year and even that is by a
small margin.

 

Most, including the UK will be significantly behind. So too will several
important developing economies in addition to Argentina, including India and
South Africa.--BBC

 

 

 

Bitcoin peaks at record high close to $20,000

Bitcoin has traded at its highest value to date, reaching $19,920.53
(£14,821) according to data-provider Coindesk.

 

It took the virtual currency nearly three years to top its previous record,
when it peaked about $137 lower.

 

Bitcoin has risen in value by more than 170% since the start of the year.

 

Analysts suggest some investors have treated it as a "safe haven asset" at a
time of uncertainty caused by the coronavirus pandemic, but others warn that
it remains volatile.

 

Bitcoin fell below $3,300 at one point after reaching its previous high.

 

And even this Tuesday, it briefly dipped below $18,300 a couple of hours
after setting its new record.

 

'Feels different'

Other factors that have supported its recent rise include PayPal allowing
its platform to be used to buy and sell the virtual coins in October, and a
number of large institutional investors declaring interest in buying into
funds tied to the crypto-currency.

 

These include Guggenheim Partners, a Wall Street firm that announced on
Friday it might put as much as $530m into a Bitcoin-related investment
trust.

 

"It seems that barely a day goes past when we don't read a headline about a
mainstream fund or company expressing an intention to put some of their
holdings into Bitcoin," said Rhian Lewis, author of The Cryptocurrency
Revolution.

 

"Price predictions are notorious for being wrong, so it's entirely likely
there will be more dips and volatility.

 

"But this time it feels very different from the 2017 high - there seems to
be more real demand, and the narrative is more measured."

 

She added that another factor was that investors are concerned that central
bank efforts to deal with Covid-19 will fuel inflation.

 

Gold and other precious metals are traditionally used to hedge against such
a risk.

 

But because in theory only a limited amount of Bitcoin can ever be created -
it was designed to only let 21 million bitcoins be produced, of which about
18.6 million already exist - some favour it as an alternative.

 

If it does climb higher there could be sudden drops in value, however, as
some traders will have set automatic sell orders pegged to it reaching the
$20,000 mark.

 

One expert warned members of the public to be careful.

 

"Never invest money you can't afford to lose," said finance and economics
writer Frances Coppola.

 

"Bitcoin is a speculative asset and has a history of sudden crashes. It's
not worth risking your house or your life savings for it.

 

"And borrowing to invest in Bitcoin or other crypto-currencies is a bad idea
unless you are a professional trader."

 

Bitcoin is often referred to as a new kind of currency.

 

But it may be best to think of its units being virtual tokens rather than
physical coins or notes.

 

However, like all currencies its value is determined by how much people are
willing to exchange it for.

 

To process Bitcoin transactions, a procedure called "mining" must take
place, which involves a computer solving a difficult mathematical problem
with a 64-digit solution.

 

For each problem solved, one block of Bitcoins is processed. In addition the
miner is rewarded with new Bitcoins.

 

This provides an incentive for people to provide computer processing power
to solve the problems.

 

To compensate for the growing power of computer chips, the difficulty of the
puzzles is adjusted to ensure a steady stream of new Bitcoins are produced
each day.

 

To receive a Bitcoin, a user must have a Bitcoin address - a string of 27-34
letters and numbers - which acts as a kind of virtual post-box to and from
which the Bitcoins are sent.

 

Since there is no register of these addresses, people can use them to
protect their anonymity when making a transaction.

 

These addresses are in turn stored in Bitcoin wallets, which are used to
manage savings.

 

They operate like privately run bank accounts - with the proviso that if the
data is lost, so are the Bitcoins owned.--BBC

 

 

 

Qualcomm: Android phones to get 'lucky number' Snapdragon 888 chip

Qualcomm has branded its next flagship chip for Android smartphones with a
number lucky in Chinese tradition.

 

It says the Snapdragon 888 will let handsets take high-resolution photos
faster than before and perform AI-related tasks more efficiently.

 

Devices powered by the chip should be on sale by March.

 

If the firm had followed its previous naming convention, it would have been
numbered the 875. One expert suggested the decision had significance.

 

"It may point to Qualcomm extending an olive branch to those in the industry
caught up in the ongoing China-US trade war," suggested Deborah Petrara from
ABI Research.

 

"888 is regarded by the Chinese as a symbol of fortune and prosperity, which
will also undoubtedly chime well with Qualcomm's expectations of success."

 

Over recent months, Huawei has been blocked from getting its own Kirin
smartphone chips produced as a result of US restrictions.

 

California-based Qualcomm was recently given permission to sell its 4G-based
chips to Huawei as an alternative.

 

This would not cover the new chip - which contains an integrated 5G modem.
But in time the export rules may be reduced further under the incoming Biden
administration.

 

Qualcomm said other Chinese vendors - including Xiaomi, Oppo, One Plus,
Meizu, Nubia, Vivo and ZTE - had already shown "support" for the Snapdragon
888 ahead of announcements of their own.

 

The BBC is not responsible for the content of external sites.

View original tweet on Twitter

One concern for Qualcomm is that if anti-US sentiment grows, handset
manufacturers might switch to alternative chip designers.

 

Taiwan's MediaTek and its Dimensity chips and South Korea's Samsung and its
Exynos processors would be the main options.

 

Faster photos

The Snapdragon 888 is Qualcomm's first chip to be made using a five
nanometre process. This is a reference to the fact its transistors are
smaller than before and can therefore be packed more densely together to
offer performance gains.

 

Apple's iPhones recently launched with processors based on a similar
technology manufactured by Taiwan's TSMC.

 

But Qualcomm has opted to have its chips made by Samsung's semiconductor
division despite the fact that TSMC produced its earlier flagship 865 and
855 ranges.

 

"Snapdragon 888 will... transform smartphones into professional cameras,"
said Qualcomm in a press release.

 

"[The chip can capture] roughly 120 photos at 12 megapixels resolution - up
to 35% faster than the previous generation."

 

Another advance is that the 5G modem is now built into the chip rather than
being a separate component, as was the case last time round.

 

This should make more room for other parts inside smartphones, where space
is at a premium.

 

"Consumers will see significant improvement in coverage and performance
given the blend of technologies that Qualcomm is integrating," added Geoff
Blaber from the CCS Insight consultancy.

 

Qualcomm said the chip's "AI engine" had also been completely re-engineered.

 

This refers to parts of the processor designed to specialise in mathematical
tasks useful for pattern recognition and other tasks that help software make
sense of the external world.

 

The firm suggested this would help software developers make improvements to:

 

live-motion tracking of objects, aiding autofocus in video and photography

augmented reality filters in apps

automatically adjusting audio to take account of the device's immediate
environment

 

The BBC is not responsible for the content of external sites.

View original tweet on Twitter

"These features matter because they help smartphone vendors compete in the
premium price tier and set the base for new features that trickle down to
more price tiers over time," commented Ben Bajarin from the Creative
Strategies consultancy.--BBC

 

 

 

Debenhams set to close putting 12,000 jobs at risk

Debenhams stores are set to close after the failure of last-ditch efforts to
rescue the ailing store chain.

 

It means all 12,000 employees are likely to lose their jobs when the chain's
124 shops cease trading.

 

The news comes just hours after Topshop owner Arcadia fell into
administration, putting 13,000 jobs at risk.

 

Debenhams itself had been in administration since April. Hopes of a rescue
were crushed after the last remaining bidder, JD Sports, withdrew.

 

Staff were told the news on Tuesday morning.

 

Debenhams stores map

Is there any way back for Debenhams?

It's hard to see how. The department store chain had already gone into
administration for a second time and is now set to enter liquidation, also
known as winding-up, which means it will cease to exist as a company.

 

The 242-year-old retailer had already trimmed its store portfolio and cut
about 6,500 jobs since May as it struggled to stay afloat.

 

What went wrong at Debenhams?

However, the administrators said the outlook for a restructured operation
was "highly uncertain" and they had therefore "regretfully concluded" that
they should start winding up Debenhams UK, while continuing to seek offers
for all or parts of the business.

 

There have been suggestions that JD Sports pulled out of bidding for
Debenhams because of the collapse of Arcadia, which is the biggest
concession operator in Debenhams.

 

Debenhams in Oxford Street

However, senior sources at Arcadia dismissed any link and told the BBC it
was being blamed for the collapse of a deal that had never been agreed.

 

What happens next?

The 12,000 jobs at Debenhams are set to go over the coming months unless the
administrators do a deal for all or parts of the business.

 

Restructuring firm Hilco will start going into stores on Wednesday to begin
clearing stock.

 

Tough trading during the coronavirus pandemic proved to be the final blow
for both Debenhams and Arcadia, which employ more than 25,000 people between
them.

 

Topshop owner Arcadia goes into administration

Geoff Rowley of FRP Advisory, joint administrator to Debenhams and Partner
at FRP, said: "All reasonable steps were taken to complete a transaction
that would secure the future of Debenhams.

 

"However, the economic landscape is extremely challenging and, coupled with
the uncertainty facing the UK retail industry, a viable deal could not be
reached."

 

With Debenhams to be wound down and Arcadia in administration, this is one
of the blackest weeks for the British High Street and one that will have
councils around the country pondering the future of their town centres.

 

Debenhams, which started as a single shop in central London in 1778, has
withstood recessions, depression and world wars, but has succumbed finally
to the twin threats of the internet and pandemic shutdowns.

 

It has been struggling financially since before the financial crisis, but
successive restructurings have failed to find a winning formula.

 

In many town centres, Debenhams was one of the few sizeable anchor tenants
left after the recent demise of BHS and others.

 

And this may not be the end of the bad news. If Arcadia were to go the way
of Debenhams, it would mean another 13,000 jobs lost.

 

Shoppers are still able to buy items in stores and on the Debenhams website,
until all the stock is sold.

 

Anyone who has ordered something on the website, including during Black
Friday, should receive it. They should also be able to return these items,
under the normal rules, within 14 days, if they do not want them.

 

The business is also accepting payment cards, such as gift cards. If the
business is sold, these cards might continue to be valid.

 

However, if cards are unspent or items not delivered if Debenhams closes
entirely, then shoppers may need to contact their bank, via the chargeback
scheme, or their credit card provider (if they spent more than £100 on a
single order) to get a refund.

 

What about the workers?

A supervisor who has worked at the Debenhams Bullring Birmingham store for
five years said she had found out the news on a group call.

 

"The call was really sad. It genuinely felt like they had tried so hard and
they had now lost the fight.

 

"Unfortunately the business is just outnumbered and the pandemic is
something they, like all of us, could never have predicted," she told the
BBC.

 

Retail trade union Usdaw said it was seeking urgent meetings with Debenhams'
administrators and urged them to "treat staff with fairness and dignity".

 

Usdaw general secretary Paddy Lillis said the company and its administrators
had refused to engage with the union and accused them of treating staff
"appallingly".

 

He added that the government needed "a recovery plan to get the industry
back on its feet".

 

Former Debenhams chairman Sir Ian Cheshire told the BBC he felt "desperately
sorry" for its employees.

 

He said that Debenhams had been "caught in a straitjacket" with too many
High Street outlets on long leases.

 

What do shoppers think?

 

Shoppers in Leeds raised concerns about what Debenhams stores closure would
mean for the High Street.

 

"We won't have any shopping centres left, we'll have no town centres left if
everyone shops online," said one shopper.

 

'If Debenhams goes it's a tragedy for the town'

"It's been a long time coming, really," said another. "It's been a long slow
decline for Debenhams - it's not really changed with the times."

 

In Edinburgh, one shopper said it was "a shame", adding: "People are losing
their jobs, It's a shop that's been there since I was born. All the girls
bought their prom dresses there."

 

Are staff pensions affected?

Long-serving members of staff, or past workers, who were members of the
company's two defined benefit pension schemes have been at risk for months
of getting smaller pension payouts.

 

The two schemes - the Debenhams Retirement Scheme and the Debenhams
Executive Pension Plan - have been assessed by the official rescue scheme
called the Pension Protection Fund since April last year, affecting an
estimated 11,000 members.

 

Those yet to retire, or who have retired early, could receive at least 10%
less than they would have expected from their pension. If the schemes are
found to be in a relatively strong financial position, they may not lose as
much.

 

Others who have already reached pension age (thought to be about half of
members) may see a smaller inflation-linked increase each year than they
were promised.

 

More recent members of staff have a different type of pension, which they
keep as a pension pot for retirement.--BBC

 

 

 

Asian shares bounce on hopes for U.S. stimulus, vaccine

TOKYO/NEW YORK (Reuters) - Asian shares rose on Wednesday after a strong
lead from Wall Street fuelled by hopes for additional U.S. economic stimulus
and a coronavirus vaccine, but trade was choppy as some investors booked
profits.

 

Top U.S. Senate Republican Mitch McConnell said on Tuesday that Congress
should include new coronavirus stimulus in a $1.4 trillion spending bill
aimed at heading off a government shutdown in the midst of the pandemic.

 

U.S. President-elect Joe Biden told the New York Times his priority is
getting a generous aid package through Congress even before he takes office
in January.

 

Top U.S. health officials, meanwhile, announced plans to begin vaccinating
Americans against the coronavirus as early as mid-December once regulatory
approvals are in place, as nationwide deaths hit the highest number for a
single day in six months.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.27%, but
was still trading below last week’s all-time high. Australian stocks rose
0.12%.

 

Shares in China recovered from early losses and rose 0.12%.

 

Tokyo stocks were little changed after setting a new 29-year high. Softbank
Group shares fell 0.66% after Bloomberg News said the tech investor is
winding down its options trades on companies including Amazon.com Inc and
Facebook Inc.

 

South Korean shares hit a record high due to signs of an increase in
semiconductor demand.

 

U.S. stock futures declined 0.23% following a record closing high for Wall
Street shares.

 

Europe also looked set for a softer open, with Euro Stoxx 50 futures down
0.37%, German DAX futures down 0.35%, and FTSE futures trading 0.38% lower.

 

Benchmark U.S. Treasury yields eased slightly but remained near a three-week
high as Republicans and Democrats submitted proposals for economic stimulus
in a bid to pass a bill some time this month.

 

Analysts say downside for global equities is likely limited, with major
uncertainties surrounding the outlook now fading.

 

“We’ve had some positive leads, and a combination of optimism around the
vaccine, and government and central bank stimulus remains in place,” said
Michael McCarthy, chief markets strategist at CMC Markets. “It’s a sweet
spot for markets.”

 

MSCI’s gauge of stocks across the globe rose 0.07% in Asia on Wednesday,
edging toward an all-time high.

 

Pfizer Inc and Germany’s BioNTech SE sought emergency approval of their
vaccine candidate from the European regulator on Tuesday. Competitor Moderna
Inc also applied for emergency approval from the European regulator on
Tuesday.

 

Pfizer and BioNTech said their vaccine could be launched in the European
Union as early as this month, though a European regulator clouded the
schedule when it said it would complete its review of their vaccine by Dec.
29.

 

The U.S. 10-year Treasury yield stood at 0.9129% in Asia, not far from a
three-week high of 0.9380% hit in the previous session as investors priced
in the likelihood of more fiscal spending.

 

The spread between two-year and 10-year yields was also near its steepest in
three weeks.

 

Higher yields did not support the dollar, which was mired near its lowest
level in more than 2-1/2 years as investor appetite for risk increased.

 

Earlier this year Japan’s Softbank Group raised eyebrows by buying billions
of dollars of call options for U.S. tech giants while taking long positions
in the underlying shares.

 

Some analysts say hedging by the counterparties that sold the options to
Softbank contributed to a frenzied rally in the U.S. tech sector.

 

“This could be big news ... and bad for the tech market,” Andrew Brenner,
New York-based head of international fixed income at NatAlliance Securities,
said in a note, adding that it depends on how much you believe SoftBank was
behind increased option volatility.

 

Oil prices extended losses in Asian trading after OPEC and its allies left
markets in limbo by postponing a formal meeting to decide whether to lift
output in January.

 

Brent crude futures fell 0.74% to $47.01 per barrel, while U.S. crude fell
0.88% to $44.16 per barrel.

 

 

 

Walmart axes $35 delivery minimum on website purchases for membership
program

(Reuters) - Walmart Inc said on Wednesday it would lift the $35 minimum
order value that subscribers of its loyalty service had to meet for next-day
or two-day shipping, as the retailer gears up for a holiday season dominated
by online shopping.

 

The change, starting Friday, only applies to items on the retailer’s website
such as toys, appliances and clothing, the company said, adding that
groceries, which are delivered from stores, will still have the $35 minimum.

 

Walmart Plus, touted as a rival to Amazon.com Inc’s Prime subscription
service, was launched just over two months ago aiming to attract new
customers and make existing ones more loyal as consumers consolidate their
shopping to just a few retailers due to the COVID-19 pandemic.

 

Walmart Plus costs $98 a year or $12.95 a month.

 

With coronavirus infections spiking across the United States, expectations
have grown that Americans will do a bigger chunk of their holiday shopping
from their living rooms and home offices instead of going out to stores.

 

“We just thought that now, in advance of the holidays, given where we are
with the state of the pandemic, now is the absolute right time to have free
shipping with no minimum,” Janey Whiteside, chief customer officer at
Walmart, told Reuters.

 

The number of online-only shoppers jumped 44% during the Thanksgiving
holiday weekend in the United States, the National Retail Federation said on
Tuesday.

 

 

 

Hyundai Motor to launch dedicated EV platform in major push into electric
cars

SEOUL (Reuters) - South Korea’s Hyundai Motor Group said on Wednesday it
will introduce an electric vehicle-only platform early next year that will
use its own battery technology to cut production time and costs.

 

The plan underscores efforts by the world’s No.5 auto group to become a
major player in the global EV market, as car makers around the world are
pouring billions of dollars of investment to improve battery technology,
which keeps EV prices high compared with combustion engine models.

 

Market leader Tesla said in September it aims to halve the cost of its EV
batteries and bring more production of the key auto component in-house to
lower EV prices to $25,000 each.

 

Hyundai expects its dedicated Electric Global Modular Platform (E-GMP) will
allow it to use its own battery module technology across various EV models
and cut the number of components by 60%.

 

“E-GMP will be highly effective in expanding the Group’s EV leadership
position as it will enable the company to enlarge its EV line-up over a
relatively short period through modularisation and standardisation,” it said
in a statement.

 

An electric vehicle based on E-GMP will offer driving range of 500 kms (310
miles) or more on a single charge, an improvement of at least 23% from the
Kona EV, the longest driving range model among Hyundai’s EV lineups.

 

Hyundai Motor and its sister company Kia Motors together aim to sell 1
million EVs in 2025 to become the world’s third-largest seller of EVs.

 

It has promised 23 new EVs including 11 all-electric models by 2025 and
plans to introduce a family of EVs under the Ioniq brand from early next
year to spearhead its near-term transition toward EV production.

 

 

 

Biden would not act immediately to remove Phase 1 agreement with China: NYT

(Reuters) - U.S. President-elect Joe Biden will not immediately act to
remove the Phase 1 trade agreement President Donald Trump inked with China,
the New York Times here reported on Wednesday.

 

In an interview with a Times columnist, Biden said he would not act
immediately to remove the 25% tariffs that Trump imposed on about half of
China’s exports to the U.S.

 

Under the agreement, China agreed to increase purchases of American products
and services by at least $200 billion over 2020 and 2021.

 

 

 

U.S. oil producer ConocoPhillips to shed up to 500 workers

HOUSTON (Reuters) - ConocoPhillips, the largest U.S. independent oil
producer, said on Tuesday that it would lay off up to 500 Houston employees,
about a fifth of its headquarters workforce, to match staffing with expected
activity levels.

 

Oil and gas producers have cut the value of their assets by about $80
billion and shed tens of thousands of jobs this year as the coronavirus
pandemic savaged global energy demand and pushed energy prices down.

 

ConocoPhillips posted a loss of $1.93 billion through the first nine months
of this year, compared with a $6.47 billion profit in the same period last
year. Its shares traded at $39.27 on Tuesday, down about 40% year to date.

 

Affected employees will be notified Feb. 1, about when ConocoPhillips
expects to complete its $9.7 billion acquisition of U.S. shale producer
Concho Resources Inc. Employees who lose their jobs will receive severance
pay and help finding new positions, it said.

 

Administrative and oil-exploration jobs were identified as facing cuts when
the Concho deal was disclosed in October. Executives have targeted $500
million in cost and capital savings through 2022.

 

“We have been transparent with employees that targeted workforce reductions
in certain areas of our business may be necessary from time to time to align
organizational capacity with expected future activity levels,” said
spokesman John Roper, describing the cuts as among actions.

 

Conoco’s global staff numbered about 10,400 at the start of the year and
Concho had about 1,450 employees.

 

 

 

Nigeria: Buhari Appreciates Nigerians for Patience, Urges Use of Gas As
Alternative to Petrol

Mr Buhari directs the Minister of State Petroleum Resources to commence the
handover of mass transit buses to Organized Labour.

 

President Muhammadu Buhari Tuesday in Abuja appreciated Nigerians and
Organized Labour for restraint, understanding and patience as the country
tackles myriad economic challenges, assuring that the Federal Government is
working hard to ameliorate the situation.

 

Speaking at a virtually held event at the State House to unveil National Gas
Expansion Programme and National Autogas Roll-out Initiative, President
Buhari said:

 

"Let me now express my deep appreciation to Nigerians for their patience,
and Organized Labour for its maturity and patriotism as we collectively
navigate these global economic and other challenges."

 

Mr Buhari urged Nigerians to embrace the use of gas as an alternative to
fuel, noting that:

 

"It is no longer news that the vast Natural Gas resources, which Nigeria is
endowed with, have hitherto been used sub-optimally as a result of a dearth
of gas processing facilities and infrastructural connectivity for effective
and optimal domestic utilization.

"As I mentioned above, with a proven reserve of about 203 Trillion Cubic
Feet (TCF) and the additional upside of 600 TCF ranking Nigeria as the 9th
in the world currently, the need for domestic gas expansion and utilization
is apparent."

 

President Buhari said the deregulation of the downstream sector had exposed
many to price volatilities in the global market, urging attention to more
affordable alternative for energy, especially with Nigeria's heavy reserve.

 

"Therefore, the roll-out of the National Gas Expansion Programme, Auto-gas
initiative is coming at the right time, especially in light of global crude
oil market fluctuations coupled with the full deregulation of the local PMS
market.

"These developments have made it imperative to focus on gas as an
alternative fuel to move Nigeria from the conventional dependence on white
products for autos and prime-movers of industrial applications to cleaner,
more available, accessible and affordable energy source.

 

"The outcome will not only cushion the effect of the downstream deregulation
that this government has to painfully implement but also create new markets
and enormous job opportunities for our people," Mr Buhari said.

 

The President said the auto-gas initiative will lead to increased domestic
gas utilization and enrich the trajectory of national economic growth and
development, adding: "I, therefore, encourage everyone to embrace gas in
form of LPG, CNG and LNG as an alternative fuel for autos and other
prime-movers."

 

"The Minister of State Petroleum Resources is hereby directed to commence
the process of hand over of mass transit buses to Organized Labour as part
of our government's pledge to continue providing support that will ease the
transportation challenges Nigerians are facing at this time."

 

In his remarks at the event, the Minister of State for Petroleum Resources
Timipre Sylva said the Ministry is focusing on the development of skills,
technology and manpower as well as growth in the utilisation of LPG, CNG and
LNG.

 

He added that the National Gas Expansion programme which was initiated this
year to boost the utilization of gas in the short and medium-term "is
expected to create two million jobs per annum, promote skills acquisition
and enhance technology transfer in addition to growing the nation's GDP."

 

The Group Managing Director of NNPC, Mele Kolo Kyari informed that from 2016
to 2019, the Federal Government had spent over three trillion Naira
subsidizing the pump price of petroleum products particularly PMS, insisting
that the subsidy regime did not benefit the masses that the President is
passionate about.

 

He added that the economic effects of the COVID-19 pandemic have made it
impossible to continue with the onerous subsidy regime.-Premium Times.

 

 

 

Nigeria: Communities in Oil-Rich Niger Delta Pin Hopes On Shell Climate Case

Dakar — Green groups are taking the oil giant to court in a bid to force it
to cut emissions, with locals in Nigeria seeking an end to gas flaring

 

As a legal case over energy giant Shell's planet-heating emissions kicked
off in the Netherlands, activists said the health and livelihoods of people
in Nigeria's oil-producing region would hinge on its outcome.

 

Royal Dutch Shell faced its first court hearing on Tuesday in a lawsuit
brought by environmental and human rights groups in The Hague, the company's
headquarters.

 

Seven green groups, including Greenpeace and Friends of the Earth
Netherlands, filed the case on behalf of more than 17,000 Dutch citizens who
say Shell is threatening human rights by knowingly undermining international
climate goals.

 

They are demanding the company stop extracting oil and gas and align its
business plan with a Paris Agreement aim to limit global warming to 1.5
degrees Celsius, which they say would mean Shell cutting its greenhouse gas
emissions by 45% by 2030.

Shell has repeatedly said it supports the goals set out in the 2015 Paris
accord to combat climate change and has an aim of reaching net-zero
emissions by 2050.

 

In the Niger Delta, community members who said the oil giant's activities
had worsened their health for decades were hopeful the multinational might
be forced to step up action.

 

"People are suffering. Our environment is our life," said Jonah Gbemre, an
activist from the town of Iwhrekan who sued Shell 15 years ago over its
practice of gas flaring, which he said causes eye and breathing problems and
reduces crop yields.

 

"People are sick. Personally, I have eye problems," he told the Thomson
Reuters Foundation.

 

Flaring is when the natural gas that is often produced as a by-product of
oil extraction is burned off in a controlled way.

 

Nigeria's High Court ruled in Gbemre's favour in 2005, saying the practice
violated human rights, but the burning of waste gas has continued as the
case is still pending an appeal.

 

A Shell spokesman said the company had reduced routine flaring and remaining
sites were in remote areas.

 

"We don't have money to fight the government, to fight the multinationals,"
Gbemre said by phone, adding he was hopeful the current case would have a
bigger impact than his because it is happening in Europe.

 

Besides the problems caused by gas flaring, Gbemre said his community was
suffering from increasing floods and rising sea levels linked to global
warming, for which he also blames Shell.

 

Shell ranked ninth on a list of corporations with the highest greenhouse gas
emissions globally from 1988-2015, according to a study by CDP Worldwide, an
environmental charity.

 

ActionAid, another rights group involved in the case, said it hoped a ruling
would bring relief for vulnerable communities in the Niger Delta and other
parts of the world.

 

"For us, it's about the destruction that happens, which pollutes air, water,
and affects their livelihood options," said Harjeet Singh, ActionAid's
global climate lead.

 

"It's governments who are supposed to be clamping down on (oil companies)
but that's not happening," he said. "That's why we really wanted to bring it
to court."

 

The district court of The Hague plans to hold public hearings for the case
on December 1, 3, 15 and 17.-Thomson Reuters Foundation.

 

 

 

Kenya: Pressure on Families as Cooking Gas Prices Set to Increase

Households are set to pay more for liquefied petroleum gas (LPG) on
increased demand for the commodity in Asia due to a potentially colder start
of winter and higher heating requirements.

 

Energy and Petroleum Regulatory Authority (Epra) Director-General Pavel
Oimeke said the global price of LPG increased by $25 (Sh2,752.5) per tonne
between September and October.

 

"The price increase is as a result of the recovery of demand in India and
Asia," he said without indicating by how much LPG prices would increase on
the Kenyan market.

 

Currently, the 13-kilogramme cooking gas retails at between Sh2,100 and
Sh2,200.

However, Mr Oimeke said that per capita consumption of LPG in Kenya had
increased from 2.2 kilogrammes in 2013 to 6.4 kilogramme last year.

 

"The increase is attributed to improved supply of LPG leading to higher
penetration and also awareness creation on the benefits of LPG being one of
the cleanest sources of domestic energy," he said.

 

Tailbacks

 

Mr Oimeke, however, said that there still exists tailbacks on LPG access,
especially to the low-income households due to the high cost of appliances
and the product.

 

In June, the Treasury sought to delay the implementation of a 14 per cent
value-added tax (VAT) on cooking gas by at least one year to prevent MPs
from scrapping the new levy from a Bill that would become law on July 1.

 

This was line with the Finance Bill 2020 that has now removed cooking gas
from tax-exempt goods with the new VAT charge in what is set to push it out
of the reach of most households struggling with depressed incomes in the
wake of Covid-19.

 

Kenyan households have since June 2016 been enjoying low cooking gas prices
after the Treasury scrapped the tax on LPG to cut costs and boost uptake
among the poor who rely on dirty kerosene, firewood and charcoal for
cooking.

 

The rise in the cost of cooking gas is expected to pile pressure on families
that are struggling to foot daily bills due to job losses and drastic cuts
in earnings in the wake of the coronavirus pandemic.-Nairobi News.

 

 

 

Ethiopia: How Digital Ethiopia 2025 National Strategy Reinforces Economic
Growth

Digital Ethiopia 2025 national strategy set to transform the country's
national economy through four major pathway sectors including agriculture,
manufacturing, IT-enabled services and the tourism.

 

The digitization of these sectors is expected to boost the economic
transformation of the country in the coming five years to drive its status
to the middle-income countries of the world.

 

Recently, African Innovation Week and Technology and Innovation Institute
held a video conference about Digital Ethiopia 2025. How the ambitious
strategy would be realized to effectively address the existing challenges in
the country is, however, the major issue the panelists tried to address in
their discussions.

Myriam Said, Digital Transformation advisor at the Office of the Prime
Minister said that Ethiopia's industrialization endeavor started about 15
years ago following its pursuance of industrialization policies. At the
time, the focused areas were sectors such as labour, textile, food
processing, meat processing, leverage, cement, steel, horticulture and
others.

 

On the occasion, Myriam briefed about technology advancement in the
manufacturing sector including digital communication production and
logistics.

 

Historically, as to her, the core benefit of the manufacturing sector was
generation of foreign exchange and job creation. Being a labor intensive
sector, it created golden opportunity for skilled labour forces particularly
women and the youth.

 

Manufacturing has been a fast growing sector. This is particularly true for
the light manufacturing export sector. Global industries' leaders are
increasingly looking for opportunities in Ethiopia. "That's why Ethiopia has
become an important hub, because we have competitive labour and electricity
cost that is affordable," she said.

 

"We have also trade privileges such as the African Growth and Opportunity
Act (AGOA) and state-of-the-art Industrial parks that made Ethiopia
attractive to such investment. We need to know how we can make the sector
successful in the future," she stated.

 

The automation of the global manufacturing sector has resulted in the loss
of job opportunities. What is being seen is that the fourth industrial
revolution, the automation of the apparel manufacturing, is technically too
difficult and economically infeasible. On the other hand, some argue that
fully automated apparel factory are possible and potentially viable but it
may take time.

 

"International and local industry leaders told us that in the next 10 years
robots will engage in apparel manufacturing but it was countered by many
that the possibility for such investment to happen is low."

Myriam said lower income countries' workers may become less competitive.
Having such technology involves some level of factory automation even if it
is hard to reach full automation. Yet, competitive labor is going to be
essential.

 

Fast connectivity between production facility and global center of
innovations is going to be fundamental. "This tells us there is strong link
between internet connectivity and the future oriented apparel manufacturing.
So we look at where Ethiopia can succeed based on that," she noted.

 

The investors have been investing in Ethiopia's industrial parks adopt
advanced technologies are which provides an opportunity to young electrical
engineers to quickly catch-up learning this technology to repair machines.
Ethiopia can succeed by adapting digitally enable solutions recognizing that
to remain competitive, it needs fast and reliable connectivity in industrial
parks.

 

The internet connectivity is important in industrial parks. Logistic
management approach is also needed to boost export. The ability to deliver
product on the given time and with an affordable cost from the point of
origin to the final destination is essential for competitiveness.
Unfortunately, Ethiopia has difficulties in catching up on trade logistics
system efficiencies compared to countries in other part of the world.

 

As to her, Ethiopia has been introducing a large number of initiatives in
the transport sector to improve infrastructure. It has been heavily
investing in improving transport infrastructure such as the railroad linking
Addis Ababa to Djibouti. Efforts are under way to expand the dry port of
Mojo with state-of-the-art technology and other custom related improvements.

 

It is a must to continue to pay greater attention to trade logistics
particularly learning the interface between import, digitalization and trade
logistics. And successful manufactured goods export delivery involves
diverse products as a priority in two main areas.

 

One is the manufacturing goods that are more and more digitalized. Thus,
ecommerce is a critical export channel as the ecommerce policies are in
progress. Second is improving efficiency through easing customs procedure
that paves way to improve Ethiopia's export performance.

 

Munir Duri, Founder and CEO of Kifya Financial Technology, on his part said
that Ethiopia's agriculture is comprised of two sub sectors; smallholder
farmers and pastoralists. Currently, the Ethiopian agriculture is conducted
by combining farming and animals' breeding in a traditional way.

 

Smallholder farmers and pastoralists have multiple challenges and demands
such as lack of market access with fair value to their produce and
livestock; challenges in the agricultural inputs supply like seeds,
fertilizers and others.

 

They have also challenges in terms of mechanization as they are still using
traditional methods of farming. Besides, they are stuck in the traditional
logistics delivery. "However, most of the challenges can be addressed
through modernized and digitalized technology and this contributes greatly
to overcome the existing problems and demands.

 

In many countries, digital technology is a major part that can give input
credit for smallholder farmers to access better seeds and chemicals, he
further added. "As a result, they can increase productivity and
profitability. Many markets leverage digital technology to provide
mechanization whether it is the tractors or harvest combiners at fraction of
cost, because it allows the fraction use of high capital goods such as
tractor the smallholder farmers can rent for an hour or combine harvester
for a couple of hours to harvest his or her produce."

 

Munir stated that digital enables smallholder farmers to have access to
market. So, farmers are able to supply their products directly to retail
through the use of ecommerce platforms leveraging logistic. In Ethiopia, in
the past years, substantial amount of directives and proclamations were
issued to show the way to use digital tools such as the digital strategy and
ecommerce proclamation. National Bank issued two major supplementary
directives and immovable asset directive. Now livestock and farmland can be
collateralized for pastoralist to get access to financial services.

 

Bahiru Zeyenu, CEO, AFRICOM Technologies Plc. explained that they give IT
services at different levels for overseas and local customers.

 

Through strategic partnership, AFRICOM is able to concentrate on bringing
effective solutions to the market. Over the world, there is market for
digital labor. Therefore, Ethiopia can get this opportunity.

 

He added that there are some challenges but the government, as a strategy,
is now doing a lot to address the existing problems such as infrastructure.
The government is also trying to establish substations to have reliable
electricity service and facilitate centers like offices as an incentive to
encourage companies in the digital world.-Ethiopian Herald.

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


Axia Corporation

AGM

virtual https://escrowagm.com/eagmZim/login.aspx

24/11/2020 | 8:14am

 


Zimbabwe

National Unity Day

Zimbabwe

22/12/2020

 


 

Christmas Day

 

25/12/2020

 


 

Boxing Day

 

26/12/2020

 


 

New Year’s Day

 

01/01/2021

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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
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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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