Major International Business Headlines Brief::: 01 November 2020

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Major International Business Headlines Brief::: 01 November 2020

 


 

 


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ü  Amazon drops French Black Friday ad campaign as lockdown starts

ü  The great divergence: U.S. COVID-19 economy has delivered luxury houses
for some, evictions for others

ü  Ford sells struggling Brazil factory

ü  Dunkin' Brands to go private in $8.76 billion deal by Arby's owner

ü  Days before election, economic data reveals gradual improvement, gloomy
outlook

ü  Netherlands puts KLM bailout on hold after pilots reject wage freeze

ü  Easyjet looking at financing options, not against state aid

ü  Wall Street Week Ahead: Big tech stocks may face post-election headwinds,
no matter who wins

ü  Jittery Wall Street banks 'war game' the election with drills, client
calls, special pollsters

ü  Ethiopia: Chinese Prominent Steel Industry Firm to Explore Investment
Possibilities in Ethiopia

ü  Nigerian Stocks Hit 16-Month High As Investors Swoop On Market

ü  Tanzania: Six Tanzanian Students Win Huawei Global ICT Competition

ü  Nigeria: NNPC, First E&p Jv Commences Production in Omls 83/85

ü  Workshop Teaches Financial Institutions and SMEs How to Attract Climate
Funding

ü  Nigeria: Zcpi Africa Launches Investment Project

 

 


 <http://www.nedbank.co.zw/> 

 


 

Amazon drops French Black Friday ad campaign as lockdown starts

PARIS (Reuters) - Amazon is withdrawing advertising for pre-Black Friday
discounts in France, after the government said the campaign was unfair to
small shops at time when a coronavirus lockdown has forced them to close.

 

France entered its second national lockdown on Friday to try to contain a
surge in infections. The curbs imposed under it include the closure of
non-essential stores.

 

A spokeswoman for Amazon AMZN.O said the group had agreed to halt its radio
advertising campaign around pre-Black Friday sales.

 

A page with discounted items under the header “Black Friday ahead of time”
was live on its French website on Saturday, however.

 

Junior Economy Minister Agnes Pannier-Runchaer said she had asked Amazon to
suspend the campaign. It was “not at all appropriate at a time when 200,000
businesses will have to shut their doors,” she told Europe 1 radio on
Saturday.

 

A discount shopping day that takes place worldwide, Black Friday usually
coincides with the Friday of the U.S. Thanksgiving Weekend.

 

Amazon’s French campaign was due to run between Oct. 26 and Nov. 19.

 

The online retailer had to shut some of its warehouses in France during the
country’s first lockdown this spring, after clashing with unions over
sanitary conditions there.

 

Pannier-Runacher, asked if Amazon would be allowed to maintain a campaign
for Black Friday sales this year, said it was not yet clear. “It’s a matter
we will have to work on with all retailers,” she said.

 

French restaurants, cafes and shops not selling essential goods will have to
close for at least the next two weeks.

 

The restrictions sparked an outcry across the country over bookstores in
particular, with opposition politicians and literary figures calling for
them to remain open.

 

Fnac Darty FNAC.PA, which sells books as well as electronic goods, said on
Friday it would shut down its culture section in coming weeks out of
solidarity, after chain stores came under fire as some will remain open.

 

 

The great divergence: U.S. COVID-19 economy has delivered luxury houses for
some, evictions for others

(Reuters) - When the temperature dipped near freezing in Columbus, Ohio in
mid-October, the children had no heat. The gas had been shut off in their
apartment for nonpayment. DaMir Coleman, 8, and his brother, KyMir, 4,
warmed themselves in front of the electric oven.

 

The power, too, was set to be disconnected. Soon there might be no oven, no
lights and no internet for online schooling. The boys’ mother, Shanell
McGee, already had her cell phone switched off and feared she could soon
face eviction from their $840-a-month apartment. The rundown unit consumes
nearly half her wages from her job as a medical assistant at a clinic, where
she works full-time but gets no health benefits.

 

Just 14 miles northwest of McGee’s neighborhood, Kiki Kullman is having one
of the best years of her life.

 

The real-estate business she runs with her family just sold the
highest-priced house in its history: a 13,000-square-foot estate, listed for
$4.5 million, that came with an elevator and a classic-car showroom. And in
late October, Kullman closed on a home of her own -- a $645,000 three-story
Colonial, painted a stately white with a front door flanked by columns, a
pleasant place for her two-year-old twin boys to grow up.

 

Columbus exemplifies the economic split animating America’s coronavirus
crisis.

 

Professionals like Kullman are thriving, thanks in part to pandemic-induced
policies by the Federal Reserve that have buoyed the stock market and fueled
industries such as real estate with record-low interest rates.

 

For many lower-wage workers, meanwhile, the crisis has delivered a cruel
shove, toppling families like the McGees who were already living on the
financial edge. Nationwide, millions of people including hotel workers,
retail clerks, waiters, bartenders, airline employees and other service
workers have lost jobs as COVID-19 fears crushed consumer demand.

 

Economists call this phenomenon a “K-shaped” recovery, in which those on the
top continue to climb upward while those on the bottom see their prospects
worsen.

 

Ned Hill, professor of economic development at Ohio State University, called
that downward slope of the K “fat and broad and long and ugly looking.” He
said there’s little hope for a return to normal as long as coronavirus
continues to spread unabated in the United States. In Ohio, COVID-19 cases
are soaring and hit a record of 3,590 new cases on Oct. 29. In Columbus
alone, at least 643 people have died.

 

“People’s jobs and incomes have disappeared, and they aren’t coming back
until people’s threat of dying from the virus dissipates,” Hill said.
“That’s it.”

 

Located in the center of Ohio, about halfway between Pittsburgh and
Indianapolis, Columbus is a city of some 900,000 people. Home to Ohio State
University and the state’s capital, its employment is rooted in sectors like
hospitality, education and health, government, and professional and business
services.

 

That mix has allowed it to fare better during the crisis than some other
Rust Belt cities that are more heavily dependent on manufacturing.
Columbus’s September unemployment rate of 7.5% was lower than the national
average of 7.9%. But like the rest of the United States, its front-line and
modestly skilled workers have been slammed the hardest.

 

The divergence of fortune can be seen in the city’s housing market.

 

For those with means, like the clients of real estate agent Kullman, low
interest rates have translated into cheaper mortgages, allowing them to
afford bigger houses. Columbus is just one of four U.S. cities - along with
Cincinnati, Kansas City and Indianapolis - where houses are selling in less
than five days on average, according to real estate research firm Zillow.

 

“It is crazy to see in Columbus the million-plus price point getting
multiple offers and all-cash bids,” said Kullman, 36.

 

 

For renters hammered by the downturn, meanwhile, housing is a precarious
business.

 

During the early days of the pandemic as Ohio’s residents sheltered in
place, evictions in Columbus fell, thanks to local and federal protections
to keep renters in their homes. But since September, 1,774 eviction cases
have been filed, far surpassing summer levels, according to Princeton
University’s Eviction Lab, which tracks evictions. The Greater Columbus
Convention Center now serves as a bustling eviction court.

 

Those filings came despite a Sept. 4 decree by the U.S. Centers for Disease
Control and Prevention (CDC) banning all evictions nationwide until Jan. 1
to prevent a surge of newly homeless people from contracting and spreading
the coronavirus. Under the moratorium, landlords cannot evict tenants who
can no longer pay rent because their earnings have been affected by
COVID-19.

 

But landlords are not required to inform tenants of these protections and
are free to file eviction lawsuits. Only renters who know about the CDC ban,
qualify for it and take legal action to assert their rights can stop their
evictions. Among the 24 cities the Eviction Lab tracks, Columbus is one of
the few where evictions did not fall after the ban.

 

The fallout can be seen across Columbus. The local pot of money from federal
relief to help cash-strapped tenants pay rent was tapped out in September.
Food banks are running low on staples, and homeless shelters are at
capacity, according to community advocates.

 

Utility shut-offs have surged to the point that lawyers for the Legal Aid
Society of Columbus have resorted to filing personal bankruptcy petitions
for tenants to keep their heat, lights and water on.

 

If present conditions persist, and without a new round of federal relief, as
many as 40 million people could be at risk of eviction in coming months,
according to the Aspen Institute, a think tank. In a typical year, 3.6
million eviction cases are filed.

 

‘BEING POOR COSTS YOU’

 

Even before the pandemic, McGee, 29, was struggling financially. In 2014,
she bought a 2008 Chevy Malibu off a corner lot charging 22% interest. She
said the junker stopped running long ago, so she stopped paying in 2016.
McGee said she offered to return the vehicle, which has 176,475 miles on it,
but the lender wouldn’t take it back.

 

In March, McGee’s live-in boyfriend lost his job at a fast-food restaurant
as Ohio went on lockdown, cutting their household’s income. In August, he
was diagnosed with COVID-19 and the entire family had to quarantine. That
same week, McGee got a call from her employer, telling her that her lender
had gotten a court order to garnish 25% of her wages to repay more than
$10,000, with penalties and late fees, that she still owed on the car.

 

That left her with take-home pay of $728 every two weeks. She couldn’t
afford school supplies for her sons and had to borrow gas money from her mom
to get to work in her boyfriend’s car.

 

“It was heartbreaking, it was everything all at once,” said McGee, who wears
rectangular glasses and has a broad, easy smile.

 

She sought help from Paul Bryson, an attorney with the Legal Aid Society who
filed a bankruptcy petition in October to get McGee’s utilities turned back
on and the garnishment frozen. The court approved the petition, but not
before McGee’s lender took $1,023 of her wages.

 

“Being poor costs you a lot of money,” Bryson said. “Even before the
pandemic, somebody’s entire life falls apart when they get a garnishment.
And now? If nothing is done, we are just going to have a lot of people on
the street.”

 

 

McGee’s car lender, Columbus Mortgage, did not respond to requests for
comment.

 

LIVING THE DREAM

For years, Kullman, the real estate agent, fantasized about living on
Bedford Road, a coveted address in the Columbus suburbs.

 

In the region’s poshest neighborhoods, sumptuous houses that make perfect
pandemic compounds, with amenities like his-and-hers home offices and roomy
basements for online schooling, can sell in a day, often with multiple
offers in all-cash deals well above the asking price. Kullman said some
shoppers are submitting bids without ever touring a house. The most
desperate are agreeing to “no-remedy” inspections, meaning they won’t ask
for concessions if the inspection turns up a major defect. Others, she said,
have authorized “crazy escalation clauses with no cap.” In real estate
parlance, that means they will beat any other offer, no matter how high the
price.

 

“You have to sign away your life to get the house you want,” Kullman said.

 

In August, Kullman, who runs the Kullman Group at Street Sotheby’s
International with her husband, father and sister, found out that a couple
who lived on Bedford Road were about to move. She made a bid before the
house hit the market and the owners accepted. The Colonial is right next
door to her sister’s home; their kids will share backyards.

 

Kullman is aware of her good fortune amidst the pandemic, and the mean hand
that coronavirus has dealt to the city’s most vulnerable.

 

Her husband has been doing business with a landlord who’s selling a
portfolio of homes in Columbus’s low-income neighborhood of Linden.
Non-paying tenants in those properties have been getting eviction notices.

 

“It is night and day, what we see here,” Kullman said. “Which is not what
you would expect in COVID. It’s sad but it’s true.”

 

 

 

 

Ford sells struggling Brazil factory

BRASILIA (Reuters) - U.S. automaker Ford Motor Co F.N said on Saturday it
had closed the sale of one of its factories in Brazil to civil construction
and logistics firm Construtora Sao Jose and asset manager FRAM Capital,
without disclosing the price.

 

A previous agreement to sell the factory in Sao Bernardo do Campo, which
makes the poor-selling Ford Fiesta as well as buses, to Brazilian automaker
CAOA fell through last year. Ford subsequently announced it was closing the
plant.

 

The Ford statement disclosing the sale to Sao Jose and FRAM did not give any
details on the transaction.

 

 

 

Dunkin' Brands to go private in $8.76 billion deal by Arby's owner

(Reuters) - Inspire Brands Inc will buy Dunkin’ Brands Group Inc for $8.76
billion, the two companies said late on Friday, bringing chains like Arby’s
and Dunkin’ Donuts under the same umbrella in one of the largest restaurant
deals.

 

Dunkin' Donuts store in Santa Monica, California September 2, 2014.
REUTERS/Mario Anzuoni/File Photo

Inspire Brands, which owns Arby’s, Buffalo Wild Wings and Sonic Drive-In,
said its all-cash deal to take the owner of Dunkin’ Donuts and
Baskin-Robbins chains private would value it at $106.50 a share. That
represents a nearly 20% premium over Dunkin’s last closing share price on
Oct. 23, before the New York Times first reported the deal talks.

 

Including debt, the deal is valued at about $11.3 billion, the companies
said.

 

Sales at Dunkin’ and Baskin-Robbins have improved from their lockdown lows
in recent weeks, boosted by strong demand for its curbside pickup,
drive-thru and delivery options.

 

Dunkin’ and Baskin-Robbins on Thursday posted a surprise rise in U.S.
comparable sales in the third quarter.

 

Dunkin’ and Baskin-Robbins will operate as distinct brands within Inspire,
the companies said.

 

“We are excited to bring meaningful value to shareholders who ... believe
that Inspire Brands ... will continue to drive growth for our franchisees
while remaining true to all that is unique and special about the Dunkin’ and
Baskin-Robbins brands,” Dunkin’ Brands Chief Executive Officer Dave Hoffmann
said.

 

Dunkin’ Brands operates 12,900 Dunkin’ restaurants and more than 8,000
Baskin-Robbins stores around the world. Inspire Brands, which was formed in
2018 by private equity firm Roark Capital as a holding company, has a
portfolio of more than 11,000 restaurants.

 

“They will strengthen Inspire through their scaled international platform
and robust consumer packaged goods licensing infrastructure, as well as add
more than 15 million loyalty members,” Paul Brown, chief executive officer
of Inspire Brands, said.

 

The Wall Street Journal first reported the confirmation of deal.

 

Barclays was the financial adviser to Inspire, while BofA Securities advised
Dunkin’ Brands.

 

 

 

Days before election, economic data reveals gradual improvement, gloomy
outlook

(Reuters) - With the presidential election drawing near, a litany of data
released this week shows the U.S. economy continues to climb out of the
recession caused by the coronavirus pandemic, but progress is slowing.

 

Now, with infections on the rise, economists say many voters may be weighed
by a gloomy outlook when deciding whether to back the incumbent president,
Republican Donald Trump, or his challenger, Democrat Joe Biden.

 

“I would think the overall mood of the voter going in is not joyous right
now,” said Kathy Bostjancic, chief U.S. financial economist for Oxford
Economics.

 

The economic data released this week largely beat expectations and showed
incomes are rising, consumers are spending more and output is increasing. It
also revealed an economy still far from where it was before the pandemic,
with some consumers likely needing more help to stay aloft.

 

That divide was present in the pitches Trump and Biden made to voters this
week, with Trump vowing to deliver more growth in a second term and Biden
emphasizing the economy was still in a deep “hole.”

 

Friday’s report showed consumers’ incomes are recovering slowly. It also
showed their spending is more concentrated on goods, such as cars, clothing
and shoes, while spending on services, including travel, remained low.

 

Consumers still cautious

 

Reuters Graphic

The pattern shows many consumers remain cautious about how they spend
because of budget constraints, fear of getting sick and activity
restrictions, said Bostjancic. Some who lost jobs are spending down savings
and dim prospects for more fiscal aid in the near future could be impacting
consumers’ attitudes, she said.

 

The reports also show that after an historic third-quarter surge, the
economy is recovering more gradually now, said Jason Pride, chief investment
officer for private wealth at Glenmede. It could take time for industries
dependent on close human interaction to fully recover, Pride said.

 

“We’ve been through the easy portion of the reopening,” he said. “Now we’re
in the slow grind upward.”

 

Cooling temperatures heading into the winter could provide another hurdle
for restaurants and other businesses that have adapted by moving outdoors,
Diane Swonk, chief economist for Grant Thornton, wrote in a note on Friday.
That slow comeback for services could mean prolonged unemployment for the
millions laid off because of the crisis.

 

Getting the virus under control and helping people get back to work will be
among the largest challenges faced by the winner, analysts say..

 

While voters will weigh a range of issues in their decisions, some who are
unemployed may back who they hope will deliver more stimulus, said Pride.
Those doing well financially may not see such a need and could vote in the
opposite direction, he said.

 

If elected, Biden has pledged to lift the federal minimum wage, roll out
more stimulus and invest trillions of dollars in infrastructure and green
energy programs. But he will not get far without support in Congress.

 

Trump has signaled he is in favor of more federal stimulus, but has offered
fewer specifics on jobs.

 

 

 

 

 

Netherlands puts KLM bailout on hold after pilots reject wage freeze

THE HAGUE (Reuters) - The Dutch government on Saturday put on hold its plan
to bail out KLM, the Dutch arm of Air FranceAIRF.PA-KLM, after pilots
rejected a wage-freeze until 2025, Finance Minister Wopke Hoekstra said.

 

KLM had been due to receive a 3.4 billion euro ($4.0 billion) package,
including 1 billion euros in direct loans. from the government to help it
cope with the damage from the coronavirus pandemic.

 

“I find it very disappointing, but this way we cannot move forward with the
loan now,” Hoekstra told journalists.

 

The pilots’ union argued that it had already agreed to a freeze until March
2022, and could not now change that agreement at the last minute.

 

Ahead of the government announcement, KLM CEO Pieter Elbers had said that
“without this loan, KLM will not make it through these challenging times”.

 

In a statement, he said KLM would not immediately go bankrupt but that its
reserves “cannot last more than a few months”.

 

In a letter to parliament, Hoekstra left the door open for the bailout if
all KLM employees agreed to the five-year wage freeze.

 

 

“It is up to KLM and the unions to ensure that they meet the government’s
demands after all,” he said, adding that the second wave of the coronavirus
pandemic had changed expectations about how soon airlines could bounce back.

 

“The outlook is sombre, that makes it all the more important to have a good
restructuring programme in place to work towards KLM’s long-term recovery,”
he wrote.

 

Unions representing ground and cabin crews have agreed to the extended wage
freeze, which is set to last as long as the airline receives government
support.

 

Air France-KLM on Friday reported a 67% drop in third-quarter revenue to
2.52 billion euros, just as a new COVID-19 surge poses further threats to an
industry devastated by the pandemic and the ensuing collapse in long-haul
travel. The airline’s net debt rose by 3 billion euros to 9 billion euros.

 

 

 

 

Easyjet looking at financing options, not against state aid

BERLIN (Reuters) - EasyJet is considering options to bolster its finances,
and is not against state support to help the airline get through the
coronavirus pandemic, chief executive Johan Lundgren said on Saturday.

 

“We have a number of options of financing. We are reviewing that all the
time,” Lundgren told Reuters in an interview ahead of the opening of a new
airport in the German capital.

 

“I am not against state aid,” he said. “It is very clear that the crisis has
been to that extent that you can’t expect the industry and its players to
cope with it all by themselves.”

 

With travel across Europe at very low levels, most airlines are bleeding
cash, but easyJet’s finances have come under particular scrutiny amid media
reports that it has signalled to the UK government it may need more
financial support.

 

The airline has warned it will make an annual loss of as much as 845 million
pounds ($1.09 billion) for the 12 months that ended in September.

 

To survive the impact of the pandemic, it has raised more than 900 million
pounds from the sale and leaseback of aircraft, taken a 600 million pound
loan from the government, cut 4,500 jobs and tapped shareholders for 419
million pounds.

 

Tightening coronavirus restrictions across Europe mean that easyJet, which
before the pandemic was the fifth biggest airline in Europe by passenger
numbers, is planning to fly just 25% of capacity for the rest of 2020.

 

 

 

Wall Street Week Ahead: Big tech stocks may face post-election headwinds, no
matter who wins

NEW YORK (Reuters) - Some investors are betting the technology and
communications stocks that drove a massive rebound in U.S. markets this year
will face a tougher slog in coming months, no matter whether Republican
President Donald Trump or Democratic challenger Joe Biden wins Tuesday’s
election.

 

Betting against big technology has been a risky proposition over the last
decade, as stocks like Amazon, Google and Netflix have shot higher at the
expense of so-called value and cyclical stocks such as banks and energy
companies.

 

Recently, however, some fund managers say they are growing alarmed by what
they see as a consensus in Washington to tighten regulations, and prospects
that another large stimulus bill would bolster a rotation out of tech and
into other sectors including economically sensitive value stocks.

 

“There will be a shift and it is starting, but it will take time,” said Max
Gokhman, head of asset allocation at Pacific Life Fund Advisors, which cut
its exposure to large-cap tech in September to neutral from overweight.

 

Should Biden win as polls suggest, technology companies could face higher
tax rates and tax-motivated selling as well as increased regulation,
investors said.

 

Both Trump and Biden have criticized large tech companies but stopped short
of explicitly calling for them to be broken up. Trump has said “there is
something going on in terms of monopoly” when asked about big tech firms.

 

Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O, Facebook Inc
FB.O, and Google-parent Alphabet Inc GOOGL.O now make up approximately 23%
of the total weight of the S&P 500, according to S&P Dow Jones Indices,
giving their gyrations an outsized impact on broader markets.

 

Hedge fund manager David Einhorn of Greenlight Capital, a longtime tech
bear, told clients in a letter this week that tech stocks were in the middle
of an “enormous bubble” that popped when the S&P 500 hit its record high on
Sept. 2, 2020.

 

Technology stocks tumbled in the past week’s selloff, though earnings
results from companies like Facebook, Alphabet and Amazon have shown how the
tech giants expanded their businesses this year.

 

“It has become more difficult for mega-cap tech to surprise on the upside,”
analysts at UBS Global Wealth Management said in a note Friday.

 

Some investors pointed to recent hearings in Washington as a sign that
increased regulations will come to the sector no matter which party takes
control in Washington.

 

The Justice Department’s lawsuit against Google in late October marked the
first time the U.S. government has cracked down on a major tech company
since it sued Microsoft Corp MSFT.O for anti-competitive practices in 1998.

 

“This may be the only bi-partisan issue out there,” Pacific Life’s Gokhman
said.

 

An expected $2 trillion stimulus package by Biden, who leads Trump in
national polls by 10 percentage points, could enhance the appeal of
out-of-favor stocks like construction equipment and materials companies,
investors said.

 

A shift to value stocks “is increasingly likely over the next 12 months,”
said Eduardo Costa, who runs hedge fund Calixto Global Investors, LP.

 

Calixto, which invests largely in technology, media, and telecom stocks, has
returned 30% since January, an investor said.

 

Potentially higher taxes under a Biden administration are another worry.
Biden has proposed increasing the corporate tax rate to 28% from 21%,
potentially weighing on companies’ earnings.

 

A separate proposal to tax capital gains and dividends as ordinary income
could prompt some investors to sell winners in order to lock in lower tax
rates, analysts said.

 

Brian Jacobsen, senior investment strategist at Wells Fargo Asset
Management, said his firm has been underweighting the Nasdaq Composite and
is moving more of its portfolios into cyclical stocks with more compelling
valuations, especially industrials.

 

“We’ve done some scenario analysis and thinking through various permutations
of who controls Congress and the White House and our general view is that it
might not matter all that much,” he said.

 

 

 

 

Jittery Wall Street banks 'war game' the election with drills, client calls,
special pollsters

NEW YORK/HONG KONG (Reuters) - Large Wall Street banks have been running
“war game” drills in their trading businesses and preparing clients for
unexpected scenarios around the U.S. election next week, hoping to avoid
liquidity crunches or technical errors as markets react to news of who will
be running the White House and Congress, industry sources said.

 

There is more confidence now than a few weeks ago that there will be a clear
presidential winner, because Democrat Joe Biden has moved up in polls
against incumbent Republican President Donald Trump. However, the two men
are tied in some key states, according to the latest Reuters/Ipsos poll,
suggesting it may not be a slam dunk.

 

Traders, bankers and wary fund managers told Reuters they are preparing for
a wide range of outcomes.

 

One bank’s equities desk has been running drills across major trading hubs
in New York, London, Paris and Hong Kong for a variety of scenarios to make
sure systems can handle enormous volatility, an executive there told
Reuters.

 

That bank has been reaching out to top customers to get a sense of how much
they expect to trade and ask whether they need margin limits increased, and
to suggest they send orders through approved electronic systems rather than
calling, to avoid inadvertent mistakes, the person said.

 

Another global lender hired its own polling firm to check popular
assumptions and prepare for unforeseen possibilities, an executive there
said. The polling firm’s work underscored the common assumption that Biden
is likely to win, but the bank is preparing for other scenarios anyway, said
the executive who, like some others, spoke on the condition of anonymity to
discuss non-public internal planning.

 

Only the most daring investors are going into Nov. 3 with large trading
positions, several sources said. Most do not want to be forced sellers if
they get things wrong. Plus, even those who bet correctly risk the chance of
a drawn-out election battle where markets flip back and forth for weeks or
months.

 

“I don’t think anybody is willing to bet on any particular outcome,” said
Peter Kraus, a former executive at Wall Street banks including Goldman Sachs
Group Inc who founded asset management firm Aperture Investors in 2018. “The
rational thing to do is to take your risk down.”

 

If Kraus were running a trading desk at a major bank today, he would tell
traders to take as neutral a position as possible, he said.

 

“I would much rather be coming into the election with a set of flat
positions and liquidity and, if the worst happened, I would be able to
service the trading volume,” he said.

 

Since banks began preparing for the election, polls and circumstances have
shifted several times – making lenders more jittery about any assumptions,
even days before the event. In late September, bankers told Reuters they
were prepping for a situation with no clear winner. [L4N2GQ4B2]

 

Volatility has already begun to pick up in equity and currency markets over
rising coronavirus statistics, giving some traders and bankers a queasy
feeling about the days ahead. [L8N2HJ2NG]

 

Contingency planning around major events is not unusual for major global
banks, which face regulatory stress tests each year to ensure they have
enough capital and liquidity to survive extreme scenarios. Big trading firms
conduct similar trials, as do exchanges that have been planning for soaring
volumes and technical glitches, as Reuters reported on Thursday. [L1N2HJ2K2]

 

 

 

Ethiopia: Chinese Prominent Steel Industry Firm to Explore Investment
Possibilities in Ethiopia

Addis Ababa — The Chinese prominent Steel industry, firm, Chongqing Iron and
Steel Design Institute (CISDI Group Co., Ltd.), expressed interest to look
into the possibility of investment in Ethiopia on Iron and Steel sector.

 

Consul General of Ethiopia to China, Anteneh Tariku, held discussion with
Vice President of CISDI Group, Dr. Zhang Yong, in Chongqing, China.

 

On the occasion, Anteneh briefed the Vice President about Ethiopian current
steel production capacity and the potential of iron ore resources, according
to Ministry of Foreign Affairs.

 

 

Both sides would reap a mutual benefit through coupling Ethiopian natural
resources with the company's technology and know-how, the Consul General
added.

 

The government of Ethiopia encourages companies like CISDI Group,
considering the potential of the construction sector in advancing the
country's economy, he said.

 

Dr. Zhang Young on his part stated CISDI Group is looking for possibilities
to invest outside of China, confident of its abundant experience,
technology, and know-how in the field.

 

General Manager of CISDI Group, Liu Yong, noted he had traveled to Ethiopia
two years ago and observed the immense potential of the country in the
sector.

 

Anteneh has also called upon the company to look into the possibility of
investment in Ethiopia on Iron and steel projects and real estate
development projects, for which the CISDI leaders replied positively.

 

CISDI Group is one of the core subsidiaries of Metallurgical Corporation of
China (MCC) under China Minmetals and has opened more than 20 subsidiaries
and branches across the globe.

 

The Group has been the backbone of the Chinese economy for over 61 years
being at the forefront of China's steel modernization.-ENA.

 

 

 

Nigerian Stocks Hit 16-Month High As Investors Swoop On Market

Nigerian stocks rose 3.7 per cent yesterday to their highest level in more
than 16 months after investors swooped on banking and consumer goods
companies' counters.

 

The stock has maintained a bullish trend since the beginning of the week
following increased buying interests that have greeted the influx of mixed
corporate numbers.

 

The number of better-than-expected results lifted demand to a peak, driving
the Nigerian Stock Exchange (NSE) All-Share Index to cross the 30,000 mark
to close at 30,530.69. Also, market capitalisation hit N15.958 trillion,
while volume and value of trading soared by 115 per cent and 127 per cent
807.810 million shares and N10.501 billion respectively.

Although some level of apprehension was expressed following the unrest last
week after hoodlums hijacked the #EndSARS protests, most analysts and market
operators had remained upbeat about the market.

 

Analysts at Cordros Research, for instance, said despite the heat in the
socio-political landscape triggered by the degeneration of the #EndSARS
protests, they did not expect a material dent to investors' appetite for
stocks.

 

"We reiterate that pent up system liquidity and the hunt for alpha-yielding
opportunities in the face of increasingly negative real returns in the fixed
income market remain positive for stocks. However, we advise investors to
trade in only fundamentally justified stocks as the weak macro environment
remains a significant headwind for corporate earnings," analysts at Cordros
Research said.

 

The stock market has remained investors' bride since the real returns in the
fixed income market turned negative and increased liquidity in the system.

 

While making a case for buying interest in the equities market, Analysts at
Meristem Research had said they identified elevated system liquidity
supported by incoming Open Market Operations (OMO) maturities, depressed
fixed income yields and a dearth of attractive alternative investment
options.

 

The Chief Executive Officer of the NSE, Mr. Oscar Onyema, had linked the
stock market rally to CBN's restriction of domestic investors from
participating in its open market operations (OMO) as well as the interest
rate cut.

 

According to Onyema, investors are always in search of higher returns on
investments, noting that central bank's policies have made the stock market
attractive to investors.

 

He said: "I must say that some of the policy changes I made reference to
include the CBN policy that domestic institutional investors should stop
participating in the OMO market. That has driven significant funds into the
Nigerian Treasury Bills (NTB) market and some of those funds have found
their way into the equities market. We have also seen a cut in interest
rate. That was a significant move in support of equities as an asset class.
What investors tend to do is to look for yield."

 

NSE CEO said since the Nigerian economy has shifted into a negative real
interest rate environment, investors are now in search of investments that
would give them higher yields and returns.

 

"Given the record dividend yield available in the Nigerian market and given
the strong fundamentals of a number of companies that are listed on the
Exchange, it makes sense that as investors try to rebalance their portfolio,
they would look at equities," he said.-This Day.

 

 

 

 

Tanzania: Six Tanzanian Students Win Huawei Global ICT Competition

SIX Tanzanian students from the University of Dar es Salaam (UDSM) have
qualified for the Huawei Global ICT competition after excellent performance
in recent Huawei sub-Saharan Africa ICT Competition finals.

 

The Competition Online Award Ceremony held on Thursday aimed at providing a
platform for global ICT talents to showcase their ability to compete and
communicate, encouraging ICT-related studies and drive the growth of a
robust ICT talent ecosystem.

 

At least 13 winning teams from Tanzania, Uganda, Nigeria, South Africa,
Kenya, Lesotho, Mauritius, Zambia and other regions, including the US, will
compete in another champion in November's global finals.

Among the winning teams that received awards during the ceremony, 10 teams
from Tanzania, Uganda, Nigeria, South Africa, Kenya and Lesotho entered the
global finals after a stiff competition in a network track, while the cloud
track sees the victory of three teams from Nigeria, Mauritius and Zambia.

 

Tanzania has nine students grouped into three teams.

 

Two Tanzanian teams made it to the global finals, one of the two teams being
the first winner among the 40+ teams that participated in the competition
and the second team finished in 4th place and, therefore, won the second
prize.

 

The two teams are made up of students from UDSM College of Information and
Communication Technologies (Coict). First Prize winners were Mpoki Abel
Mwaisela, Hongo Kelvin and Henry Kihanga while second prize winners were
Aghatus Biro, John Lazaro and Elisante Akaro.

 

The awards ceremony marks sub-Saharan Africa's five consecutive years of
active participation in the Huawei ICT Competition, which attracted more
than 50,000 students from 14 African countries with a slogan "Connection,
Glory and the Future" and the latest ICT knowledge such as cloud computing,
AI, mobile networks and big data. During the ceremony attended by high-rank
government officials, industry leaders, and students.

 

Huawei Middle East and Africa VP Hou Tao highlighted the impressive
enthusiasm of the students needed for Africa's digital inclusion in the era
when the gravity of workplace skills was already shifting online.

 

"International experience suggests that this is a key area where
public-private partnerships can have a substantial impact. " Mr Tao says:
"As a private company serving the African market for over 20 years, Huawei
has dedicated itself to and will always remain a trusted partner of
governments and the academia in building an ICT talent pool, strengthening
capacity building and increasing people's digital competence."

 

 

Speaking as the representative of university educators, Prof Funso Falade,
President of African Engineering Education Association (AEEA) identified
several challenges facing training of engineers in Africa such as lack of
fund, brain drain and weak university/industry partnership. He then
acknowledged Huawei's constructive role in addressing those challenges.

 

"Skills development opportunities provided by Huawei Technologies Company
Limited are in line with AEEA goal and aspiration for our students and a
critical area where we need a lot of expertise in Africa more than ever
before going by the disruption that the Covid-19 pandemic has brought to our
educational system," he added.

 

The awards ceremony closed with good wishes and encouragement to students
who qualified for November's global finals. "Good luck in the global final,
I look forward to an African team taking the top spot," said Mr Tao.

 

Huawei ICT Competition is one of the biggest events of its kind.

 

Among participating countries, Zambia, Kenya, Tanzania and South Africa held
the national opening or awards ceremony where multiple ministers and
officials in science and education spoke to commend the ICT competition's
positive role in cultivating the African science and technology talent
pool.-Daily News.

 

 

 

 

Nigeria: NNPC, First E&p Jv Commences Production in Omls 83/85

The Nigerian National Petroleum Corporation ("NNPC") and FIRST Exploration
and Petroleum Development Company ("FIRST E&P") Joint Venture has announced
the commencement of oil production from the Anyala West field in Oil Mining
Leases (OMLs) 83 & 85.

 

OMLs 83 & 85 are in the shallow waters offshore Bayelsa State where FIRST
E&P is the Operator of the two blocks, on behalf of the NNPC/FIRST E&P Joint
Venture.

 

According to the firms in a statement,the Anyala - Madu field development
project objective is to develop 142 million barrels of oil and 98 billion
standard cubic feet of gas from the fields in Phase 1.

"It utilises the Abigail-Joseph FPSO, a 274 meters long converted Suezmax
trading tanker with a storage capacity of 700,000 barrel, oil processing
capacity of 60,000 barrels of oil per day, produced water treatment of
20,000 barrels per day and a gas handling capacity of 39 million standard
cubic feet per day.

 

"A total of seven development wells have been planned in Phase 1 and
approved by the Department of Petroleum Resources (DPR) in the Anyala West
field (OML 83) which will be developed along with the nearby Madu field in
(OML 85) to be jointly produced in the Abigail-Joseph FPSO".

 

They noted that each field is being developed with an unmanned conductor
supported platform (CSP), a novel drilling and development technology
deployed in the Niger Delta.

 

"The FPSO underwent upgrade, refurbishment and life extension works in
Keppel Shipyard, Singapore, to meet specified standards and specifications
and the excellent partnership between NNPC, FIRST E&P, Yinson and Keppel
Shipyard, helped to ensure these critical pre-deployment activities for the
FPSO were completed in record time.

 

 

"A team of young Nigerian professionals including 7 NNPC staff were part of
the successful extension works in the Keppel Shipyard and they will form an
integral part of the FPSO operations team in the production phase.

 

"The project at its peak production will produce about 60,000 barrels of oil
per day, unlock over 300 million barrels of crude oil recoverable reserves
and create value of over $8bn for the FGN over the total lifespan of all
phases of the project.

 

"The project was carried out with over 2.5 million man-hours with zero Lost
Time Injury.

 

Speaking further, Group Managing Director,

 

NNPC, Mr Mele Kolo Kyari, stated that the project is a milestone for Nigeria
being the first wholly indigenously executed and funded integrated Oil and
Gas project in the shallow offshore.

 

 

"This a project that will go a long way in helping us to achieve our
strategic objective of 3 million barrels of oil per day by 2023.

 

"This is the first project that NNPC, as a JV partner, will carry its
partner to provide funding on behalf of the Joint Venture. It is a signal of
hope for our country that there is indeed light at the end of the tunnel.
The accomplishment of this great feat in the midst of a pandemic is a clear
demonstration of our resolve to achieve performance excellence in spite of
all odds."

 

In his remarks, Managing Director of FIRST E&P, Mr Ademola Adeyemi-Bero,
said, "We appreciate all the support that was given to us by the NNPC, the
Department of Petroleum Resources, Nigeria Content Development Monitoring
Board as well as the hard work and collaboration by FIRST E&P staff, our
contractors as well as Nigerian banks in the achievement of this major
milestone."-This Day.

 

 

 

Workshop Teaches Financial Institutions and SMEs How to Attract Climate
Funding

The Climate Change and Green Growth Department of the African Development
Bank, in partnership with climate change consultancy Natural Eco Capital,
recently organized two virtual workshops to equip financial institutions and
Small and Medium Enterprises to benefit from climate investment.

 

Companies from six African countries - Angola, Egypt, Morocco, Mozambique,
Nigeria and South Africa - attended the workshops. The sessions were
delivered under the Bank's Private Sector Investment Initiative for
Nationally Determined Contributions in Africa, financed by the Fund for
Africa Private Sector (FAPA).

 

The first workshop, held from 6 to 7 October 2020, focused on practical
training for SMEs and financial institutions and how to use two powerful
climate change tools developed by the Bank.

 

Building on the work of the African Financial Alliance on Climate Change
(AFAC), the second segment on 8 October targeted financial institutions,
their role in climate action, and methods they can use to incorporate
climate change into their financial products.

 

Al Hamdou Dorsouma, Manager of Climate and Green Growth at the Bank, told
participants: "Learning how to use the GHG accounting tool and the climate
risk screening and opportunity tool will enhance your capacity as SMEs to
implement climate action and attract global climate finance, including
finance from the Bank through your local finance institutions."

 

By the end of the workshop, participants had screened two real businesses
for climate risks, estimated their carbon footprint and identified climate
investment opportunities for them.

 

The Paris Agreement on Climate Change mandates all countries to submit
Nationally Determined Contributions (NDCs) as their commitment to keeping
global warming below two degrees Celsius. Almost all African countries have
obliged by tabling their NDCs, which will cost about $3 trillion by 2030 to
implement.

 

At least 75% of the investment needed to roll out the climate change
requirements is expected to come from the private sector across several key
industries. However, private sector participation in climate change
initiatives in Africa remains low and must be strengthened to benefit from
the abundant opportunities for green investments on the continent.

 

To attract climate finance into private investments, the Bank has developed
four tools to support SMEs and financial institutions: a climate risk
screening and opportunity toolkit for SMEs; a greenhouse gas (GHG)
accounting tool for SMEs; climate change mainstreaming guidelines for lines
of credit (LOCs); and a green jobs tracking tool. All four tools were
launched this year.-African Development Bank.

 

 

 

 

Nigeria: Zcpi Africa Launches Investment Project

Zircon Capital Projects Investments, ZCPI Africa, has launched a real estate
capital project to enable Nigerians invest and harness opportunities in the
nation's growing real estate sector.

 

In 2019, the Nigerian real estate sector recorded its fastest growth at 2.36
per cent since 2016. Experts predict more growth by 3 per cent in 2020, thus
raising hopes of better opportunities in the sector.

 

Marketing Director of the firm, Ridwan Onitolo, stated that the new project
was thought of to enable stakeholders and Nigerians tap into the immediate
and future growth in the sector while also boosting the nation's Gross
Domestic Product, (GDP).

 

 

He said the project would also help tackle the challenge of poverty and
unemployment, in addition to filling the vacuum of over 17 million housing
deficit limiting development in the country.

 

Onitolo, who provided details at the official launch of the project, stated
that ZCPI offerings have been delimited into different plans to suit
investors' interest and budget.

 

He said, "The co-building plan is launching at N1 million per unit for
properties at Surulere, Lekki, Ogba in Lagos State.

 

"The co-build equity plan offered a 60 per cent Return on Investment (ROI),
at the expiration of a one year plan after which an investor can be paid off
or rollover the investment plan. This is to say that an investor can be sure
of N600,000 ROI on every one million invested at the end of 12 months.

 

"The Co-owned asset plan is a long-term investment available between five
and 10 years. Here, investors enjoy yearly income for as long as the plan
reads. Investors have the luxury to subscribe for as many units as possible,
for N3 million per unit. With our offerings, our partners can go to rest or
focus on other profitable commitments while their investments with ZCPI work
and pull additional income for them."

 

 

He mentioned that in addition to juicy ROI, investors are at liberty to
inspect and monitor projects.

 

He added that ZCPI projects have the backing of Aiico Insurance broker and
other prominent property managers, which further strengthens clients'
security on investment.

 

Onitolo also emphasised the company's commitment to economy upliftment in
its 10 years of operations across Africa.

 

He said, "As a socially responsible company, ZCPI Africa is determined to
contribute meaningfully to the lives of Nigerians, as well as Pan-African
society through gainful employment opportunities while also eradicating
poverty.

 

"We promise real time value for investment in terms of comfort, reward,
fulfillment and opportunities. We equally offer continuous and future
development."-This Day.

 

 

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


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
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.

 


 

 


(c) 2020 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

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