Major International Business Headlines Brief::: 05 November 2020

[Bulls n Bears]

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Major International Business Headlines Brief::: 05 November 2020

 


 

 


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ü  Nigeria's Debt to Hit N38.6 Trillion By December 2021

ü  Nigeria: Dangote Fertiliser Plant to Begin Operation December - Official

ü  US markets soar despite election uncertainty

ü  Coronavirus: Shoppers flock to stores as lockdown looms

ü  Uber and Lyft win battle over driver status in California

ü  M&S suffers first loss in 94 years as clothing slumps

ü  S&P 500 futures rise as U.S. election suggests less regulatory risk

ü  Amid U.S. election uncertainty, Fed likely to lay low this week

ü  Allstate Corp CEO eyes climate insurance plan under potential Biden win

ü  Ant's IPO fiasco set to clip its wings and dent its value

ü  Asia shares near three-year high, bonds see boon in U.S. stalemate

ü  U.S. employment, services industry data point to slowing economic recovery

ü  Nigeria: Business Owners Expect Inflation Rise, Plunging Naira - Report

ü  Nigeria, Third Highest Destination of Used Cars From U.S. - Report

ü  Namibia: Dutch Seafood Giant Linked to Fishrot

ü  Lesotho: Thousands of Jobs At Risk

ü  Uganda: Govt Seeks to Extend Rail Network to South Sudan

ü  Malawi: Low Investment in Nutrition Projects Worries Oxfam

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


Nigeria's Debt to Hit N38.6 Trillion By December 2021

Nigeria's debt stock has risen by over 158 per cent in the last five years.

 

Nigeria's total public debt may hit N38.68 trillion by December 2021, the Minister of Finance, Budget and National Planning, Zainab Ahmed, has said.

 

The projection, she said, is based on existing approvals.

 

The minister stated this on Tuesday when she appeared before the Senate Committee on Local and Foreign Debts.

 

Her comments come amidst growing concerns over Nigeria's debt stock. This is even as the nation plans to fund the 2021 budget deficit with N4.28 trillion new borrowings which represents about one-third of the proposed budget.

 

In the 2021 budget presented to the National Assembly in October, President Muhammadu Buhari proposed N13.08 trillion expenditure for the next fiscal year. He also announced that total federally distributable revenue is estimated at N8.433 trillion in 2021 while the total revenue available to fund the 2021 Federal Budget is estimated at N7.886 trillion.

PREMIUM TIMES had reported how Nigeria's debt stock has risen by over 158 per cent in the last five years.

 

In her presentation, Ms Ahmed said the total public debt stock comprising the external and home debts of the federal and state governments and the Federal Capital Territory stood at N31.01 trillion ($85.90 billion) as of June 30.

 

"It is projected, based on existing approval, to rise to N32.51tn by December 31, 2020 and N38.68tn by December 31, 2021."

 

She further explained that the proposed N4,28 billion borrowing, was broken down equally between Domestic Borrowing of N2.14 billion and External Borrowing of N2.14 billion.

 

The 2021 Appropriation Bill has a provision of N3.12 trillion for Debt Service. Domestic Debt Service has a provision of N2.18 billion while External Debt Service has a provision of N940.89 billion.

While she blamed abandoned road projects across the country on poor fund releases, she explained that the current SUKUK fund of N162 billion is for 45 roads cutting across the six geopolitical zones.

 

"I am one person that feels that we should just take one major road in one geopolitical zone and finish it. We were not able to do that because of the processes in which appropriation is made both at the executive as well as the legislative arms of government.

 

"But truly, if we are able to just take one or two projects at a time and complete it before going to the next one, it will be better. What the contractor does is the bit that has been cut out for him to do in that particular area.

 

"Once the fund is released and it is finished, we stop again. That's the consequence of these numerous projects that we put in the budget. It is not related to Sukuk-funded projects alone; it cuts across all the projects," she complained.

She wondered how projects can be completed with inconsistency in the release of funds.

 

"You will see a road that costs, maybe, N5 billion, and you will see a provision for N100 million, N200 million or N300 million. Of course, the project will never finish. After two years, the contractor comes back and asks for variation, and the amount keeps growing.

 

"I wish that we get to a point when we sit down as a government and agree that, let us select a few projects, finish them in 2020, and then in 2021, we select the next. So that on a geopolitical basis, those selections are done as a collective process."

 

The minister, however, said work on the legacy projects, Lagos-Ibadan highway, Second Niger Bridge, East-West road, and Abuja-Kaduna-Kano road, is ongoing without stop because funds were available and that they were few. And these projects, she said, were assigned to the Nigeria Sovereign Investment Authority.-Premium Times.

 

 

 

Nigeria: Dangote Fertiliser Plant to Begin Operation December - Official

The Dangote Group said its two billion-dollar granulated urea fertiliser plant located at Ibeju Lekki, Lagos will begin operation before the end of December.

 

Anthony Chiejina, Group Head, Corporate Communications, Dangote Group, confirmed the development to the News Agency of Nigeria (NAN) on Wednesday in Lagos.

 

Mr Chiejina said: "The project will be ready for take-off before the end of December.

 

" The pre-testing has already been done and the delay in starting operations was due to the COVID-19 pandemic."

 

NAN reports that Aliko Dangote, Chief Executive Officer, Dangote Group, had in February projected that the plant would begin operations in July.

 

Mr Dangote had said that the project would be the largest fertiliser plant in the world with its three million tonnes per annum capacity.

 

He said it would make Nigeria the only urea exporting country in Sub-Saharan Africa, adding that the fertiliser and petrochemicals plants were capable of generating $2.5 billion annually.

 

According to him, the amount is almost 10 per cent of what Nigeria is getting from home remittances, which is one of the highest in the world.-Premium Times.

 

 

 

US markets soar despite election uncertainty

US stock markets have recorded their biggest post-election leap in decades despite continuing uncertainty over which candidate will win the race.

 

Shares rallied as investors bet the closer-than-expected results reduced the chance of big changes for business.

 

Tech and health firms, now seen as less likely to face new regulation, led the gains.

 

Facebook shares rose more than 8%, while several major health insurance firms saw double-digit jumps.

 

The Dow closed up more than 1.3%, while the wider S&P 500 climbed 2.2%. The tech-heavy Nasdaq gained nearly 3.9%.

 

"The thinking in the markets ... is it looks like it's divided government regardless of who takes the White House," said Chris Low, chief economist at FHN Financial. "That means a lot less probability of big sweeping legislative change, big sweeping spending or tax programmes and therefore a lot less uncertainty."

 

With millions of votes still to be counted, incumbent President Donald Trump and his challenger, Democrat Joe Biden, are neck and neck in key swing states.

 

But predictions of a possible early landslide win for Mr Biden and his party in Congress failed to materialise. Early Wednesday morning, Mr Trump prematurely claimed victory, and later moved to challenge vote counts in some states.

 

Against some expectations, however, the uncertainty over the outcome did not appear to worry US financial markets, which have proven resilient this year despite a crash in March triggered by the coronavirus.

 

There was a brief sell-off in the overnight US futures market, as investor hopes faded that a so-called Blue Wave win by Democrats would usher in a major spending package for coronavirus relief and drive share prices higher.

 

But shares bounced back as investors bet the close race reduced the likelihood of other possible changes, such as an increase in the corporate tax rate proposed by Mr Biden.

 

"Divided government makes sweeping legislation inherently hard," said economist Michael Pugliese of Wells Fargo. "We are sceptical that outside of Covid relief much other major economic policy legislation would become law."

 

Business lobby group Chamber of Commerce claimed the election as a win for business interests, pointing to Republican resilience in the House and Senate.

 

The group also cited the results of some state-level fights - such as a victory in California by tech firms Uber and Lyft, which will exempt them from a law mandating stronger worker benefits.

 

"There's clearly some indication from voters across this country that they are focused on supporting a pro-growth, pro-business agenda," chief policy officer Neil Bradley told reporters.

 

The gains in the S&P 500 and the Dow were the biggest for a single day following a presidential election in at least four decades.

 

Indexes in Europe closed higher too, climbing back after a sharp fall following incumbent President Donald Trump's premature victory speech. Asian markets also mostly rose on Wednesday.

 

Mr Bradley said he was optimistic wins by pro-business centrist politicians would prompt quick action on items like further stimulus, noting remarks on Wednesday by Republican Senate Leader Mitch McConnell promising to move on a deal.

 

But with coronavirus cases rising, markets could still be in for a bumpy ride, warned Ian Shepherdson of Pantheon Macroeconomics.

 

"The bottom line ... is that we are now much less bullish on growth in the first half of next year, though we remain of the view that pent-up demand will generate a massive wave of post-vaccine spending on discretionary services later in the year," he said. "The next few months likely will be tough going for the stock market; much will depend on how quickly vaccines can be approved and rolled out; that's unknowable at this point."--BBC

 

 

 

Coronavirus: Shoppers flock to stores as lockdown looms

Shoppers in England are flocking to make last-minute buys ahead of lockdown, which will see non-essential retailers shut for a month.

 

The number of shoppers on Tuesday was up 19% compared with the same day last week, industry figures show.

 

Footfall was sharply higher in shopping centres and retail parks, according to the retail data firm Springboard.

 

It said that there had "clearly been panic buying" as people rush to buy Christmas presents before shops close.

 

It comes amid reports of lengthy queues outside stores such as Ikea, Primark, Zara and The Card Factory, with some shoppers venting their frustration at the long waits on social media.

 

Why why WHY am I in the queue for the primark in town like why am I doing this to myself ?????

 

Clothes shops and card retailers are among those non-essential retailers who will have to shut their doors for the month-long lockdown from Thursday 5 November.

 

Retailers such as John Lewis, Currys PC World and toy chain the Entertainer have all extended their opening hours in order to cope with the surge in demand ahead of the new restrictions.

 

Gary Grant, boss of the Entertainer, told the BBC that it was "just like Christmas". His 173 shops are extending their hours until 7pm or 8pm from 5.30pm and expect brisk trading right up until Wednesday night.

 

Shopping centres in particular have seen a big rise in the number of customers through their doors, with a 19.9% increase on Tuesday. High Streets and retail parks followed with a 19.1% and 18.4% uplift.

 

'I need to get out there'

Chris Geaves, the boss of Sovereign Centros - which operates shopping centres such as the MetroCentre complex in Gateshead, said its sites had been "incredibly busy" in the last few days.

 

"With lockdown from tomorrow, people have thought: 'Crikey, I need to get out there shopping'," he said.

 

"It's very positive and anecdotally, footfall has been strong, with big brands really having strong sales over the last few days."

 

Mr Geaves said that footfall at the MetroCentre last week was around 250,000, up 30% week-on-week, although still lower than 2019 figures for the same time of year.

 

Springboard also pointed out that although footfall in England had been boosted recently by last-minute shoppers, overall it still remains more than 10% down on the same period in 2019.

 

Diane Wehrle, insights director at Springboard, said footfall had risen above 2019 levels for the first time in the pandemic.

 

"Despite essential stores remaining open during the lockdown there clearly has been panic buying, as footfall in retail parks on Monday and Tuesday actually rose from the same two days last year.

 

"Even in high streets and shopping centres footfall has strengthened, which is very likely due to shoppers buying Christmas presents early before stores close on Wednesday for a month."-BBC

 

 

 

Uber and Lyft win battle over driver status in California

Voters in California have passed a measure that will see freelance workers continue to be classified as independent contractors, in a victory for companies such as Uber and Lyft.

 

It overturns a landmark labour law passed last year that ruled gig-economy workers should have employee status and the protections that go with it.

 

The new measure, Proposition 22, was backed by Uber, Lyft and DoorDash.

 

The two ride-hailing firms' shares soared in early Wednesday trade.

 

Uber's stock was trading 15% up on its opening price by mid-morning in New York. while Lyft had gained 13%.

 

Their campaign had cost $205m (£157m), making it the most expensive in state history.

 

Some drivers had backed Proposition 22 - but labour groups opposed it, pointing out all the benefits of being classed as employees, including rights to:

 

·         the minimum wage

·         overtime

·         expenses

·         paid sick days and leave

·         healthcare

·         unemployment insurance

And the California Labour Federation had accused supporters of Prop 22, as it was colloquially known, of "attempting to buy their own law through the ballot measure process".

 

Labour groups raised about $20m to oppose Prop 22 - but the far wealthier pro-campaign from Uber, Lyft, DoorDash and Instacart, was able to buy TV advertising, as as well as putting ads in their taxi-hailing apps.

 

And both Uber and Lyft had threatened to withdraw services from California entirely or severely cut back on drivers if they had to start treating workers as employees.

 

Facial recognition

Declaring the success of the vote, which formed part of the wider presidential election, Uber said: "Today, California voters agreed that instead of eliminating independent work, we should make it better."

 

The win came with some concessions though and companies must now offer workers:

 

·         a minimum earning standard of 120% of minimum wage

·         healthcare and accident insurance

Other tech-related votes passed overnight included:

 

·         Maine voters passed a ballot to ban the use of facial recognition by police and city agencies

·         Massachusetts voted in laws guaranteeing people could repair their own property, including by unlocking advanced telematic data in cars so third parties or owners could carry out vehicle maintenance—BBC

 

 

 

M&S suffers first loss in 94 years as clothing slumps

Marks & Spencer sank to the first loss in its 94 years as a publicly-listed company as the coronavirus crisis hit trading.

 

In the six months to 26 September, the retailer made a loss of £87.6m, compared with profits of £158.8m in the same period last year.

 

But chief executive Steve Rowe said the firm's performance had been "much more robust than at first seemed possible".

 

In August M&S announced it was set to cut 7,000 jobs over three months.

 

Sales for the six-month period across the group slid by 15.8% to £4.09bn - largely impacted by lower clothing and home sales.

 

Clothing sales in particular were dented by lockdowns and the desire for more casual clothes, the firm said. Between July and September, clothing sales in its city centre stores, for example, were down by 53%.

 

However, M&S does anticipate that demand for more formal clothes and occasion-wear will return, it said in a statement.

 

Catherine Shuttleworth, retail analyst and chief executive at retail marketing agency Savvy, told the BBC: "Marks and Spencer is committed to the High Street, but that comes at an enormous cost.

 

"Its 600 stores were closed [during lockdown], they've picked up on online and online sales are stronger than they've ever been. But that in no way covers the amount of sales loss they've covered this year."

 

"You've got to change to survive. While Marks was saying it, they weren't necessarily doing it, but it has now changed the way they work even at a simple level."

 

Ocado tie-up

The group also reported strong growth in its Ocado Retail joint venture, which started delivering M&S food as the start of September.

 

It said the partnership has reported a 47.9% jump in sales, while profitability has also improved.

 

M&S created over 750 new lines including in grocery and homecare to broaden its appeal on the Ocado platform, which previously delivered for Waitrose.

 

M&S was one of the few big food retailers without its own internet-based delivery service, and the tie-up with Ocado had been described as a key moment in the retailer's shift to online.

 

Julie Palmer, partner at Begbies Traynor, said that M&S "is already reaping the rewards of an excellent partnership with Ocado.

 

"Its food business could benefit from the forthcoming national lockdown [in England] as consumers look for high-quality meals as an alternative to going out.

 

"This could help it counter the effects of fewer people grabbing a sandwich while nipping out of the office for lunch," she said.

 

M&S also said its grocery business had performed "strongly" over the half-year, with like-for-like sales rising by 2.7% on the back of substantial growth from its Simply Food stores.

 

Ms Palmer added: "M&S has an opportunity to step up and sit at the table with the big players in the retail market once more, but to stake its claim, it can't just bring food to the party, it has to dress better and provide the furniture too."

 

Detractors have often described M&S as the lame duck of UK retail, forever struggling to reinvent itself quickly enough to keep up with changing consumer tastes. Its current management, however, will hope that this set of results will persuade investors that a more apt comparison would be with another bird, the phoenix.

 

Today's loss is the ashes from which the management hopes a new, slimmed-down and digital-savvy M&S will emerge.

 

Steve Rowe talks of the pandemic having forced the company to compress three years' of changes into a single year - a hint, perhaps that the crisis may have come by chance at a good time in his plan to revive the company's fortunes.

 

There are signs that the big bet on a commercial alliance with Ocado is paying off, but the Achilles heel remains weak sales in clothing and general merchandise. M&S shares were up more than 4% in early trading, suggesting that investors may discern the first flaps of the phoenix's wings.

 

Presentational grey line

The update came as M&S continues to push forward with its transformation strategy. The plans, which saw M&S announce 7,000 job cuts across stores and management in August, will enable the business to emerge from the crisis in a "stronger, leaner and more focused position", the firm said in a statement.

 

The half-year results included a £92m exceptional cost reflecting these cuts. The group said it would also see further charges of up to £120m due to store closures over the next seven years.

 

In a call with journalists, Mr Rowe said: "My goal remains unchanged - that is to deliver the long-term transformation for M&S, building a brand that is more digital in a world that will never be the same again."

 

"We know the challenges we're facing will continue," he added, citing the upcoming lockdown in England, but said the firm was in a "much better position" as the key Christmas trading period approaches.-BBC

 

 

S&P 500 futures rise as U.S. election suggests less regulatory risk

(Reuters) - U.S. stock market futures were marginally higher late on Wednesday as the presidential election race remained cloudy and the likelihood of gridlock in Congress made investors optimistic that major policy changes would be difficult to enact.

 

 

S&P emini futures EScv1 were last up 0.1%, extending a rally in Wednesday's stock market trading session. Nasdaq 100 emini futures NQcv1 rose 0.5%.

 

Democratic candidate Joe Biden predicted a U.S. election win over President Donald Trump after pivotal victories in Michigan and Wisconsin, while the Republican incumbent sought to offset a narrowing path to re-election with lawsuits and demands for a recount.

 

Both Trump and Biden still had paths to reach the 270 Electoral College votes needed to win as states kept counting mail-in ballots. However, Trump now has fewer options to secure a second four-year term.

 

A surprise win by Republican Senator Susan Collins in Maine dimmed hopes by Democrats that they could get control of the U.S. Senate.

 

“Even if Joe Biden wins the Presidency, it looks like we are going to have a divided congress so the opportunity to have meaningful change at the fiscal level is pretty slim, and that is what is being priced into the back end of the market today,” said David Joy, chief market strategist at Ameriprise Financial in Boston.

 

“If we are going to have a similar type of economic environment as we’ve had, then we are going back to an emphasis on trying to find earnings in a relatively scarce earnings environment, back to the same winners as before.”

 

The Dow Jones Industrial Average .DJI rose 1.34% to end at 27,847.66 points, while the S&P 500 .SPX gained 2.20% to 3,443.44.

 

The Nasdaq Composite .IXIC climbed 3.85% to 11,590.78.

 

It was the biggest daily percentage gain for the S&P 500 since June 5 and for the Nasdaq, since April 14.

 

Apple AAPL.O, Amazon AMZN.O and Alphabet GOOGL.O surged over 4%, while Facebook FB.O jumped more than 8%, with investors betting Big Tech companies will face less antitrust risk under a divided Congress.

 

Investors said they favor a definitive, swift resolution of the presidential race that would clear the way for a deal on a stimulus package to revive the economy.

 

Shares of defense contractors Northrop Grumman NOC.N, Lockheed Martin LMT.N and Raytheon RTX.N all rose on receding expectations of a cut in defense spending.

 

Big Pharma Pfizer PFE.N, Merck & Co MRK.N and Johnson & Johnson JNJ.N also climbed as the potentially split Congress was likely to shield the industry from sweeping reform. The NYSE Arca pharmaceutical index .DRG shot nearly 5% higher.

 

Graphic - Trump and the stock market:

 

The CBOE volatility index .VIX, a gauge for short-term volatility, hit a two-week low after spiking to a four-month high in the run-up to the election.

 

Despite the rally in stocks, the potential for political uncertainty also sent investors to U.S. Treasuries, sparking the biggest one-day drop in 10- and 30-year bond yields since June.

 

 

 

Amid U.S. election uncertainty, Fed likely to lay low this week

WASHINGTON (Reuters) - The Federal Reserve is scheduled to release its latest policy statement on Thursday after two days of debate in which policymakers lacked a critical piece of information: who will run the United States for the next four years.

 

With the final result of Tuesday’s presidential election still uncertain, the U.S. central bank’s policy-setting Federal Open Market Committee is expected to stick closely to its last statement and repeat its pledge to do whatever it can to help the economy through the coronavirus-triggered recession.

 

Until it’s clear who the next U.S. president will be, “it is the wrong time to be in the public eye,” said William English, a former head of the Fed’s monetary affairs division and now a professor at the Yale School of Management.

 

“They mostly don’t want to be a source of any additional uncertainty at this point. So they’d aim for a pretty quiet meeting,” he said in a recent interview with Reuters.

 

The Fed’s latest policy statement, due to be released at 2 p.m. EST (1900 GMT), will update the central bank’s view of the economy and likely repeat its prior promise to keep its key overnight interest rate near zero until the U.S. labor market returns to “maximum” employment and inflation is on track to exceed the 2% target “for some time.”

 

Fed Chair Jerome Powell is scheduled to hold a news conference at 2:30 p.m. EST.

 

Financial markets, at least, reacted calmly on Wednesday to the unresolved presidential election - relieving the Fed of a possible additional problem. Major U.S. stock indexes rose for a third straight day while U.S. Treasury yields fell. Cornerstone Macro analyst Roberto Perli said the decline in yields provided “no fundamental story to tell” about investor perceptions of election-related risk or the path of the economic recovery.

 

The policies expected to be embraced by Democratic presidential nominee Joe Biden if he is ultimately declared the winner of Tuesday’s election may be starkly different from those that would be pursued by Republican President Donald Trump in a second term and could reshape the outlook among investors for U.S. fiscal and health policy, and expectations about growth and inflation.

 

As of Thursday afternoon, votes were still being counted in a number of battleground states, with Biden leading in two critical Midwestern states that could tip the election in his favor.

 

 

‘PROLONGED PROCESS’

 

What may be required of the central bank in coming months hinges on not just the policies the next president pursues, but what is approved by a Congress that is expected to remain divided, with Democrats controlling the House of Representatives and Republicans leading the Senate. In the run-up to the election the two chambers could not agree on further fiscal measures to support the economy as the virus continued to spread.

 

More than 232,000 people have died in the United States from COVID-19, the disease caused by the virus.

 

The recession stemming from that health crisis has left millions out of work. As of September, it was estimated that the number of people employed was about 12 million below what it would have been if the pre-pandemic pace of job growth had continued from March onward. The U.S. Labor Department is scheduled to release its closely watched monthly employment report for October on Friday, with many analysts suggesting the job growth pace is slowing to a point where it may require years to fully rebound.

 

Nonfarm payrolls are expected to have grown by 600,000 last month, according to a Reuters poll of economists. The average monthly gain from May through September was 2.2 million jobs.

 

“A full recovery of jobs ... will be a prolonged process, one that will be primarily dictated by the health crisis,” Rubeela Farooqi, chief U.S. economist for High Frequency Economics, wrote this week.

 

 

 

 

Allstate Corp CEO eyes climate insurance plan under potential Biden win

WASHINGTON (Reuters) - Allstate Corp ALL.N wants a potential Democratic administration to back a taxpayer-funded program that would pay for losses caused by the largest climate-change fueled natural disasters, the Illinois-based insurer's chief executive said.

 

Democratic presidential challenger Joe Biden was leading Republican incumbent President Donald Trump in electoral college votes on Wednesday evening, as the ballot count looked poised to stretch into a third day.

 

Biden has outlined an ambitious plan to invest $2 trillion in clean energy to get the United States to reach net zero carbon emissions by 2050.

 

Tom Wilson, chief executive of Allstate, one of the largest U.S. property and casualty insurers, said a possible Biden climate package should include legislation to address property destruction caused by the costliest hurricanes and wildfires that exhaust all insurance coverage and state resources.

 

“You need really disaster protection because if the weather keeps getting worse, the private market for those really big events is going to be too expensive,” he told Reuters on Wednesday when the company reported third-quarter results.

 

Insurers are bracing for about $4.3 billion in insured losses from Hurricane Zeta in the United States, catastrophe modeling company Karen Clark & Co said on Monday, adding that this year has seen a record number of named storms making landfall.

 

That’s on top of what Moody’s estimates could be as much as$8 billion in losses resulting from dozens of wildfires on the West Coast this summer which scientists say were partly fueled by climate change.

 

Growing risks of wildfires have led insurers to drop thousands of homeowners in the most vulnerable areas, according to the California Department of Insurance.

 

Allstate would “love” to see Biden confront climate change, a problem policymakers have tried to address through long-term measures, said Wilson. “But people spend a lot of time arguing about the long term solution when a house is burning down.”

 

A government-backed program could be modeled on state-run insurers of last resort, such as the California Earthquake Authority, which cover natural disaster risks that are too steep for private property insurers to take on, said Wilson.

 

The government often pumps money into areas after they have been devastated, but a government-backed insurance program could create a structure more “equitable” for taxpayers, he said.

 

The United States already runs a taxpayer-funded flood insurance program and created government-supported commercial terrorism products following the Sept. 11 attacks, which require insurers to pay part of the claims.

 

Some property and casualty insurers are also pushing for a federal program to cover small business losses resulting from future pandemics.

 

While a Democratic bid to gain control of the Senate looked set on Wednesday to fail, reducing the prospects of aggressive legislation, Wilson said he believed there were lawmakers on both sides of the aisle who would support an insurance program.

 

“I think there are both Democrats and Republicans that are in the areas that are impacted by this, that would be in favor of a solution.”

 

 

Ant's IPO fiasco set to clip its wings and dent its value

HONG KONG (Reuters) - China’s surprise suspension of Ant Group’s record $37 billion listing is likely to delay rather than destroy its chances of a stock market debut though the financial technology giant’s valuation and growth prospects are set to take a hit.

 

 

The last-minute ambush by China’s regulators was seen by analysts and investors as an attempt to cut Ant founder Jack Ma and his financial services empire down to size but they expected it to eventually list in Hong Kong and Shanghai as planned.

 

“Ant’s business is likely to be restricted by new financial regulations. As a result, the relaunched IPO price will most likely be lowered,” said Andrew Collier, managing director of Orient Capital Research.

 

Ant has been trying to present itself as a technology firm rather than a financial giant and its valuation up until now has benefited from its tech focus.

 

But Chinese regulators have become uncomfortable with parts of its sprawling empire - namely its lucrative online lending business which contributed almost 40% of its overall revenue in the first half of the year.

 

Under draft rules published on Monday, online lenders in China would have to stump up more of their own capital for loans, which is expected to hurt Ant’s business model. Ant’s co-lending subsidiaries Huabei and Jiebei would also no longer be allowed to sell wealth management products, analysts said.

 

The China Securities Regulatory Commission (CSRC) said on Wednesday that recent regulatory changes could have a “major impact” on Ant’s business structure and profit model.

 

It said suspending the initial public offering (IPO) was a responsible move both for investors and markets.

 

COLLISION COURSE

The suspension was seen as a stunning rebuke for billionaire Ma, a former English teacher who built e-commerce giant Alibaba Group Holding Ltd and its affiliate Ant into two of China’s biggest success stories.

 

Ma’s net worth was set to almost double following the IPO to $59 billion, based on the valuation of Ant shares. Instead, his estimated wealth fell $3 billion after shares in Alibaba, in which he has a stake of 4.8%, fell 8.1% in New York on Tuesday.

 

Shares in Alibaba, which owns a third of Ant, ended 7.5% lower in Hong Kong on Wednesday and were trading nearly 3% higher in New York.

 

The Shanghai stock exchange’s decision on Tuesday to suspend the IPO followed a meeting between China’s financial regulators and Ant executives, including Ma, who were told the company’s online lending business would face tighter scrutiny, sources told Reuters.

 

The exact nature of the regulators’ concerns and just how long a suspension might last is not known. The Shanghai bourse described the meeting as a material event that could cause Ant to be disqualified from listing.

 

Ant said in a filing on Wednesday it would maintain close communication with regulatory authorities and the Hong Kong and Shanghai bourses on the progress of its IPO and listing and would disclose information in a timely manner.

 

Ma’s public criticism last month of financial regulations as stifling innovation had put him on a collision course with regulators in China, analysts said.

 

IN THE PUBLIC INTEREST

Regulators have, however, also become uncomfortable with banks increasingly using micro-lenders or third-party technology platforms such as Ant for underwriting loans amid fears defaults could rise and the quality of loans deteriorate in an economy hit by the coronavirus pandemic.

 

At a regular media briefing in Beijing, Wang Wenbin, a spokesman at the Chinese foreign ministry, said: “(The suspension) is a decision made to better safeguard capital market stability and protect investor rights and interests.”

 

Mom-and-pop investors who put in bids worth a record $3 trillion in Ant - equivalent to Britain’s annual economic output - were stunned after regulators abruptly suspended what would have been the world’s largest stock market debut.

 

The halt to the IPO has not only hurt Ant but also the bank leading the listing, China International Capital Corporation (CICC), as it is likely to miss out on a hefty payday and a jump in global investment banking rankings.

 

Chinese state media on Wednesday described the move as necessary and in the public interest.

 

“The basic message of Chinese regulators’ intervention in the Ant IPO is that this de-risking agenda is still the top priority. No innovation is so important that it can be allowed to create financial instability,” said Andrew Batson at Gavekal Research.

 

Batson said Ant would almost certainly return to the market but it might have to make substantial changes to its internal organisation and business model to meet regulatory requirements.

 

LOWER VALUATION

Analysts pointed to a consultation paper issued by the People’s Bank of China and the China Banking and Insurance Regulatory Commission on Monday that recommended the tightening of regulations for online micro-lending companies as foreshadowing the regulators’ move against Ant.

 

“It is disappointing as there was a lot of work by all parties and it still surprises us this new regulation was not dealt with earlier,” said a Hong Kong-based fund manager who bought stock in the IPO.

 

“The IPO will come back but timing is the question. And valuation will certainly be lower,” said the fund manager, who declined to be named as he was not authorised to speak to the media.

 

Iris Tan, a senior equity analyst at Morningstar, said she thought regulators were aiming to level the playing field for fintech players and traditional financial institutions and that she expected Ant to be required to have more registered capital for its consumer credit business.

 

Chinese bank shares rose on Wednesday, reflecting the possibility of a more level playing field, with the CSI300 banks index climbing 1.7%.

 

But few people were willing to hazard a guess as to just how long the delay might last or how far Ant’s valuation could fall.

 

Its listing had been set to value Ant at $315 billion, which would have made it Asia’s fifth most valuable firm and worth more than the Industrial and Commercial Bank of China, the world’s biggest bank by assets.

 

 

 

Asia shares near three-year high, bonds see boon in U.S. stalemate

SYDNEY (Reuters) - Asian shares climbed on Thursday and bonds extended their blistering rally as investors wagered the prospect of U.S. policy gridlock would greatly favour some industries while also restraining government borrowing.

 

The risk of a prolonged contested election did remain, though the count was progressing in an orderly fashion with Democratic challenger Joe Biden narrowly ahead in key states.

 

With massive fiscal stimulus likely off the agenda, another wave of near-free liquidity seemed inevitable.

 

“Financial markets are virtually back to the future, with monetary policy driving asset prices ever higher funded by unlimited zero-per-cent central bank money globally, and by the Federal Reserve in particular,” said Jeffrey Halley, a senior market analyst at OANDA.

 

“The election was a victory for higher equity prices, higher commodity prices, higher house prices, a rally in emerging markets and a much lower U.S. dollar.”

 

MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 1.7% to reach its highest since February 2018. Japan’s Nikkei rose 1.1% to a nine-month top and South Korea put on 1.7%.

 

Chinese blue chips gained 1.1%, aided by talk a Biden White House might ease back on trade war tariffs.

 

E-Mini futures for the S&P 500 firmed 0.8% and NASDAQ futures 1.4%. EUROSTOXX 50 futures added 0.1% and FTSE futures 0.2%.

 

Both President Donald Trump and Biden have paths to 270 Electoral College votes as states tallied mail-in ballots. Biden remained optimistic on winning while the Republican incumbent filed lawsuits and demanded recounts.

 

 

Betting sites swung toward Biden as the results trickled in, having earlier heavily favoured Trump.

 

 

 

U.S. employment, services industry data point to slowing economic recovery

WASHINGTON (Reuters) - U.S. private payrolls increased less than expected in October and activity in the services industry cooled, providing early signs of a slowdown in economic growth as fiscal stimulus diminishes and new COVID-19 infections surge across the country.

 

 

The recovery from the coronavirus pandemic could also be impacted over the next few months by political uncertainty following Tuesday’s cliffhanger presidential election, which economists warned could cause businesses to be more cautious about spending decisions.

 

The election hung in the balance on Wednesday, with a handful of close-fought states set to decide the outcome in the coming hours or days. There are fears of a contested result between President Donald Trump and his Democratic rival Joe Biden, who both still have possible paths to reach the needed 270 Electoral College votes to win the White House.

 

“This is not a good outcome for the economy since the headwinds from rising Covid cases, troubled state and local government finances and falling incomes as unemployment benefits expire, are growing in strength,” said James Knightley, chief international economist at ING in New York.

 

“Animosity and the threat of legal challenges argues against a swift fiscal support package which will be a concern as activity becomes increasingly constrained.”

 

Private payrolls increased by 365,000 jobs last month after rising 753,000 in September, the ADP National Employment Report showed on Wednesday. Economists polled by Reuters had forecast private payrolls would advance by 650,000 in October.

 

 

Job gains last month were broad, though they were concentrated in industries directly impacted by the coronavirus crisis, including the leisure and hospitality sector. The resurgence in COVID-19 cases across the country could lead to renewed business restrictions to slow the spread of the respiratory illness as winter approaches.

 

Even without new restrictions, Americans are likely to stay away from air travel, hotels, gyms, bars, restaurants and other consumer-facing businesses, worsening already lackluster demand, which has seen the labor market struggling to recoup all the 22.2 million jobs lost during the pandemic.

 

The ADP report is jointly developed with Moody’s Analytics. Though it has fallen short of the government’s private payrolls count since May because of methodology differences, it is still watched for clues on the labor market’s health.

 

It was released ahead of the government’s closely watched, and comprehensive, monthly employment report on Friday. According to a Reuters survey of economists, private nonfarm payrolls likely increased by 700,000 jobs in October after rising 877,000 in September.

 

With government payrolls expected to have dropped again last month as more temporary workers hired for the Census departed and state and local governments struggle with tight budgets, overall nonfarm payrolls are forecast increasing by 600,000 jobs after rising 661,000 in September. That would leave employment 10.1 million jobs below its peak in February.

 

 

GRIDLOCK

Surprisingly, U.S. financial markets were mostly higher despite the political uncertainty. Stocks on Wall Street rose. U.S. Treasury prices were higher. The dollar was steady against a basket of currencies.

 

“My sense is traders and investors are increasingly comfortable Republicans will hold the Senate and Democrats will hold the House,” said Chris Low, chief economist at FHN Financial in New York. “From a markets standpoint, that means whoever emerges with White House control, Trump or Biden, will not be able to do much.”

 

A survey from the Institute for Supply Management on Wednesday showed its non-manufacturing activity index fell to a reading of 56.6 in October from 57.8 in September, falling back below its 57.3 level in February.

 

The survey’s measure of services industry employment slipped to 50.1 from a reading of 51.8 in September, consistent with views that the labor market was stalling after being boosted by more than $3 trillion in government pandemic relief for businesses and workers, which is now gone.

 

That is consistent with analysts’ expectations for a step-down in economic growth in the fourth quarter after a historic 33.1% annualized rate of expansion in the third quarter. The economy contracted at a record 31.4% pace in the April-June quarter.

 

A third report from the Commerce Department showed the trade deficit fell 4.7% to $63.9 billion in September as food exports jumped to the highest level since July 2012, boosted by shipments of soybeans. Economists had forecast the trade shortfall narrowing to $63.8 billion in September.

 

Goods exports rose 3.1% to $122.8 billion, also lifted by telecommunications equipment, industrial engines and computer accessories. Exports to China were the highest since March 2018. New COVID-19 lockdowns in Europe could curb export gains.

 

Goods imports climbed 0.3% to $203.5 billion, the highest level since December 2019. Food imports were the highest on record in September. The nation also imported more capital goods, automotive vehicles, parts and engines.

 

Imports from China were the highest since July 2019. The United States imported 157.9 million barrels of crude oil in September, the fewest since February 1992.

 

 

 

Nigeria: Business Owners Expect Inflation Rise, Plunging Naira - Report

The Central Bank of Nigeria (CBN) Business Expectations Survey for October 2020 has shown that firms still anticipate inflation would rise further and the naira would further depreciate in November.

 

The October 2020 CBN Business Expectations Survey was conducted online from October 12-16, 2020, with a sample size of 1050 businesses nationwide.

 

A response rate of 89.4 per cent was achieved, and the sample covered the agric./services, manufacturing, wholesale/retail trade, and construction sectors. The respondent firms were made up of small, medium, and large corporations covering both import-oriented and export-oriented businesses.

 

The latest inflation rate released by the Nigerian Bureau of Statistics (NBS) stands at 13.71% while the naira currently exchanges for N458/$1.

 

"Respondent firms expect the naira to depreciate in the current month but to appreciate in the next month, next two months and the next six months.

"Inflation level is expected to rise in the next six and 12 months, while borrowing rate is expected to rise in the current month, next month, next two months and the next six months," the report said.

 

Respondent firms also "identified insufficient power supply, financial problems, high-interest rate, competition, unfavourable economic climate, unclear economic laws, unfavourable political climate, insufficient demand, access to credit, and lack of equipment as major factors constraining business activity in October 2020."

 

The report indicated that at -1.5 index points, the overall confidence index (CI) on the macro economy was pessimistic in October 2020.

 

However, respondents are optimistic in their outlook for November with a confidence index of 37.9. They also expressed optimism in the overall business outlook for December 2020 and April 2021 as shown in greater confidence of the economy at 46.1 and 59.7 index points, respectively.

 

The major drivers of optimism for next month were agric/services (20.0 points) and manufacturing sectors (13.4 points).

 

Further analysis revealed that businesses that are neither import nor export-oriented (-2.2 points) and import-oriented (-0.3 points), drove the negative business outlook for the month under review.-Daily Trust.

 

 

 

Nigeria, Third Highest Destination of Used Cars From U.S. - Report

Nigeria ranks below the United Arab Emirates and Mexico.

 

Nigeria is the African country importing the most used vehicles from the United States, and the third in the world, a new report has shown.

 

The report, by the United Nations Environment Programme (UNEP), said Nigeria ranks just below the United Arab Emirates (UAE) and Mexico.

 

According to UNEP, 14 million light-duty vehicles (cars, SUVs and minibuses) were exported to low and middle-income countries between 2015 and 2018.

 

"40 per cent of that total ended up in Africa," it said.

 

The European Union accounted for 54 per cent of all used vehicle exports during that period, followed by Japan's 27 per cent and the United States' 18 per cent.

 

Despite accounting for a lower share of total used vehicle exports than the EU and Japan, the U.S. still shipped 2.6 million overseas between 2015 and 2018 with a collective value of $24.5 million.

The United Arab Emirates is the top importing nation with 389,302 cars while Mexico is a distant second with 281,545.

 

Nigeria is the third, importing 203,136 cars from the U.S. within the period under review.

 

Further details of the report show that in Africa, more than 60 per cent of vehicles added annually is through the importation of used vehicles.

 

This, however, varies greatly, from zero in South Africa which has a total ban on imports to 97 per cent in Kenya.

 

The report also said that in South America, many countries ban the importation of used vehicles, but some like Paraguay, add more than 90 per cent of used vehicles each year to their fleet.

 

"Most vehicle growth in Central America and the Caribbean is from used vehicles. In Asia and the Pacific, the share of used vehicle imports is lower, because India, China, and many Southeast Asian countries ban the import of used vehicles. However, there are substantial imports of used vehicles in Pakistan, Sri Lanka, Bangladesh, Myanmar, and Cambodia, among others," part of the report read.

 

Experts have warned that the export of millions of used vehicles to developing countries is a major contributor to air pollution. This is why some countries banned the importation of used vehicles.

 

"Countries and cities are increasingly adopting policies and setting targets to reduce emissions from their vehicle fleets. They use a set of measures for this - including better urban planning, prioritizing non-motorized transport, promotion of public transport, and cleaner vehicles," the report added.-Premium Times.

 

 

 

Namibia: Dutch Seafood Giant Linked to Fishrot

THE modest office building in Valkenburg, a small town in the Dutch municipality of Katwijk, does not possess the facade one would expect from the epicentre of a global fishing empire.

 

Yet it does.

 

>From this humble building, the family-owned fishing and shipping company Parlevliet & Van der Plas (P&P) manages more than a hundred subsidiaries operating all over the globe.

 

And in that widespread network of interconnected companies, P&P works closely with Icelandic company Samherji, which is accused of bribing ministers and business people in Namibia.

 

Initially, this partnership did not extend to Africa.

 

In 2012, P&P began trying to gain a foothold in Namibia, but the joint venture - Mack Fishing - they worked with were later discredited for alleged connections to politicians such as former fisheries minister Bernhard Esau.

 

After a year-and-a-half, they decided to withdraw from Namibia and since 2014, shifted focus to European acquisitions.

 

As a result, P&P is now the largest fishing company in Europe. This prominent position as a global player has afforded the family a posh life on the Dutch coast of Noordwijk, living among international celebrities such as legendary football coach Louis van Gaal and Charlene de Carvalho-Heineken.

 

P&P is now linked to the Fishrot corruption scandal, according to an investigation by the investigative journalism groups Spit and weekly news magazine De Groene Amsterdammer.

 

They investigated Parlevliet & Van der Plas, which co-owned a company called Atlantex with Samherji.

 

BRAVE NEW WORLD

 

Namibia's coast is one of the richest fishing grounds in the world. When the South African colonial regime, was abolished in 1990, the Namibian government recognised the fishing industry as an engine for the economy.

 

Political leaders determined that developmental aid money would not be needed as the necessary investments would come through private markets. And the government was correct. Namibia quickly became a textbook example of how a developing country could use its natural resources to escape poverty.

 

But there was also criticism of such an approach. Particularly, the decision to develop primarily large-scale industrial fishing operations rather than small fisheries.

 

To reconcile this decision, Namibia developed a model in which entrepreneurs could collaborate with foreign vessel owners.

 

Namibian companies would provide access to local fishing rights and the foreigners would supply the trawlers. The thought was that once the Namibian companies were wealthy enough to buy their own vessels, the foreigners would find new seas to fish.

 

But the critics were right, as things began to go wrong during Esau's first term in 2012.

 

The 'Fishrot Files' show that the positive intentions of this economic plan degenerated into bribery, exploitation, and tax avoidance.

 

"It used to smell like fish here," says a resident of Walvis Bay. Nowadays, there is hardly any semblance of the once robust fish-based economy in the country's main port city, as much of the local catch is quickly whisked away to foreign soil. The local fish markets have dwindled, and those who drive past the once-thriving fish factories see only closed gates and dark interiors.

 

DUTCH CONNECTION

 

The spacious villa of Diederik (Diek) Parlevliet, the head of the family business, is a hermetically sealed bunker with an indoor swimming pool and, according to media reports, a genuine 'panic room'.

 

According to P&P, the fish the company catches the world over go mainly to Africa, and thus they claim to trade in some two-and-a-half billion 'meals' annually.

 

"We fish for the poor," said Parlevliet in an interview with the Dutch NTR radio programme Lijn1.

 

Cheap fish must be caught in bulk, otherwise it is not profitable, and that is the speciality of this prominent Dutch fishing family.

 

P&P's armada consists of 'super trawlers', built with European Union support. These gigantic floating factories catch up to 250 000 kilos of fish per day using nets the size of three football fields. Without the need to return to shore, the catch is immediately sorted, packaged, stickered, and frozen in the belly of the vessel - where there is room to store roughly 18 million 'fish meals'.

 

P&P is the largest of three companies that jointly control the entire Dutch pelagic catch market. The other two -- also family businesses - are Cornelis Vrolijk and W van der Zwan.

 

Since the 1970s, these three fishing and shipping companies have been ever striving to expand into new sales markets and gather additional fishing quotas.

 

To this end, they have united their efforts in the form of the Pelagic Freezer Trawler Association (PFA). While fishing operations reliant upon smaller vessels like cutters have recently been in the news because of their poor economic prospects, pelagic fisheries employing super trawlers are a gold mine.

 

In 2018, the three PFA family businesses produced a combined N$34 billion in total revenue, and together have yielded four individuals on the Quote-500, an annual list of the 500 richest people in the Netherlands.

 

TAINTED VESSEL

 

The Saga vessel was one of three trawlers Samherji used to fish in Namibia.

 

A contract in the Fishrot Files revealed the intricate ownership relationships surrounding the vessels, with the profits being divided among four companies hailing from as many countries: Belize, Cyprus, Poland, and Namibia. In reality, all of these companies share the same parent company: Samherji. Such a construction is often used for tax avoidance.

 

According to the investigative journalism organisation OCCRP, Samherji used the Polish company Atlantex in this way.

 

A 2014 business plan created by Samherji's tax expert shows that Atlantex, who managed the Saga, charged a 15% surcharge on operating costs.

 

In this way, the profits from fishing in Namibian waters were shifted from Namibia to Poland, and in turn, Samherji's tax bill was substantially lessened.

 

According to an invoice in the Fishrot Files, the company generated about €3 million in profits in just December 2015 alone.

 

As Atlantex's ultimate owner, Samherji was the beneficiary of this financial windfall. But in the late summer of 2018, a second beneficiary was added to the mix -- Parlevliet and Van der Plas -- who purchased a 50% stake in Atlantex for a paltry €50 000.

 

Quickly thereafter, Diek Parlevliet and his brothers Freek and Dirk van der Plas joined the Atlantex management team, and the Polish company immediately became a member of the Pelagic Freezer Trawler Association (PFA).

 

To add to the intrigue, the takeover took place just after whistleblower Jóhannes Stefánsson went to the Namibian authorities for the first time, of which the sharks caught wind and he had to flee the country.

 

"With the acquisition of Atlantex, P&P became a part of Fishrot," Stefánsson said.

 

A spreadsheet found within the Fishrot Files showing transactions between bank accounts of Samherji companies and the sharks demonstrates that bribe payments continued until at least January 2019.

 

According to Global Fishing Watch, an open-source fishing vessel tracking programme, the Saga continued fishing the waters of Namibia until that point.

 

In other words, during the period that P&P oversaw the Saga, via Atlantex, the trawlers fished for quotas off the coast of Namibia that were obtained by bribes.

 

P&P responded to questions from Spit with a short answer. The company claims to have had nothing to do with the management of the Saga.

 

Furthermore, it claims to know nothing about the six Samherji employees prosecuted in the Namibian corruption case.

 

Samherji sent an extensive response, stating it does not consider itself to be implicated in any wrongdoing in the allegations of Stefánsson and the revelations within the Fishrot Files.-Namibian.

 

 

 

Lesotho: Thousands of Jobs At Risk

Thousands of jobs in the country's textile industry and other sectors are on the line with exasperated investors threatening to quit the country over the spike in murders and other violent crimes against foreign businesspeople particularly those of Chinese origin.

 

Association of Chinese Enterprises in Lesotho chairperson, Wilson Li, this week warned of the likelihood of Chinese investors closing shop following an increase in murders of foreign business people particularly of Chinese origin. The latest such murder is that of Chinese businesswoman, Juli Lihong, who was gunned down over the weekend at Ha Tikoe, Maseru.

 

Last Friday's murder of the 49-year-old Ms Lihong is the second such in a week after the 14 October 2020 killing of another Chinese woman, Peng Yunfang, near Maseru Mall where she had gone to celebrate her birthday with her friends.

 

Ms Lihong ran a supermarket business in Maseru while Ms Yunfang was employed at one of the leading textile factories in Maseru. Some senior executives in the textiles sector who spoke on condition of anonymity also said they were considering abandoning the country for safer destinations if the police and government did not address their safety concerns.

 

 

All in all, there have been three murders of Chinese nationals in the space of six weeks. Last month, a well-known Chinese doctor, Tianshen Chen, was stabbed to death at his surgery in Mafeteng.

 

"The rate of crime is very scary and it is going to chase away investors," Mr Li said in an interview with the Lesotho Times this week. He added that they had held meetings with representative associations of other foreign nationals who had also warned that they could abandon Lesotho for safer investment destinations if the government and police did not urgently act to address their safety concerns.

 

He said they met with Prime Minister Moeketsi Majoro and the police command and pleaded with them to urgently address their safety concerns following the spike in murders and other violent crimes.

 

 

Dr Majoro and Police Commissioner Holomo Molibeli echoed Mr Li and other foreign nationals' concerns, saying the increase in violent crimes particularly against Chinese nationals was unacceptable and had to be stopped as this sent the wrong signals of Lesotho as an unsafe destination for foreign investors.

 

Speaking on the latest murder of Ms Lihong, deputy police spokesperson, Sub-Inspector 'Mareabetsoe Mofoka said Ms Lihong died after being shot at several times by four unidentified gunmen while she was travelling in a vehicle with her husband shortly after leaving their Ha Tikoe business premises.

 

"The gunmen shot at them several times and Ms Lihong was later pronounced dead on arrival at a local hospital. Her husband was lucky to escape unharmed. The alleged killers fled before they had taken anything from the couple. They got away in a Honda Fit vehicle which had no registration numbers. Some shells of a 9mm pistol were found at the scene of the crime. No one has been arrested yet but police investigations are ongoing," Sub- Inspector Mofoka said.

Yesterday, Commissioner Molibeli said they were extremely worried about the killings which were likely to scare away investors.

 

He said the police command had held some meetings and another one was lined up for yesterday to come with a plan to deal with the crimes.

 

"We are greatly concerned about these killings and we are already working to address this matter as it is scaring away investors. The most common crime against Chinese nationals is that of armed robberies followed by murder with intention to rob.

 

"We have held meetings and we are having another one today (yesterday) to come up with a plan on how best to address this issue.

 

"We are not just worried about the murders of foreign nationals but also those of Basotho which are also high.

 

"We are also appealing to the business community to avoid keeping or moving around with cash. Perhaps if they do more electronic transfers than cash transactions, the rate of robberies and killings will go down," Commissioner Molibeli said in an interview with this publication.

 

His remarks followed Dr Majoro's weekend comments, saying the reports of killings of foreign nationals were a worrisome departure from the founding values of the Basotho nation based on peace and hospitality to foreigners.

 

"These days we are getting reports of killings of foreign nationals, especially the Chinese, Pakistanis and Sri Lankans.

 

"We are gravely concerned about the killings because this is not like us as Basotho. We are a peace-loving nation but some Basotho have departed from these founding values and this behaviour is unacceptable.

 

"Last week, Chinese nationals visited my office to register their concerns and these killings are impacting negatively on the investors and the economy," Dr Majoro said.

 

On his part, Mr Li bemoaned the weekend murder of Ms Lihong, saying it was merely the latest in the growing list of killings and violent crimes against foreign nationals in the country.

 

"Just last month on 15 September, a Chinese doctor was killed in Mafeteng. Two weeks ago, on 14 October, a Chinese woman was killed at Maseru Mall after celebrating a birthday with a friend. Now, a Chinese businesswoman (Lihong) has been killed at Ha Tikoe in a botched robbery attempt," Mr Lee said, adding that last week alone, there had been four robberies at different Chinese-owned businesses.

 

"The rate of killings is very worrisome. We have witnessed killings before but 2020 is the worst year. We understand that Covid-19 has affected livelihoods and people are hungry. But killing other people is not going to change anything.

 

"We held a meeting with Prime Minister Moeketsi Majoro and the police management where we raised our concerns about the rate of crime which is extremely scary. It is going to chase away investors.

 

"We also held virtual meetings with other associations of foreign nationals to see how best our concerns can be addressed with the help of government.

 

"We are now headed towards Christmas and we are worried as to what is going to happen to us, especially those in the business sector as there are always robberies. We think this year it is going to be worse," Mr Li said.

 

Chinese nationals have made significant investments in the retail and textiles sector. Lesotho has developed into one of Africa's largest exporters of textile products as a result of the competitive edge offered by the African Growth and Opportunities Act (AGOA), first passed by the United States government in 2004.

 

AGOA allows a select group of African countries, including Lesotho, to export goods including textile products duty free into the US.

 

As a result, the textile industry has become the lifeblood of the economy with more than 45 000 people directly employed in the sector and thousands more employed in downstream industries.

 

However, the growing safety concerns threaten the long-term viability of the industry as well as that of other sectors which rely on foreign investment.

 

A year ago, senior executives at two of the leading textile companies in Maseru warned that they could quit the country if their safety is not guaranteed. This after their vehicles were shot at by unknown gunmen in Maseru on the stretch of road between the Pioneer Mall circle and the golf club.

 

The company executives, all of them of Asian origin and who spoke on condition of anonymity, said they were ambushed and carjacked by the gunmen who forcibly drove them to automated teller machines (ATMs) in the industrial area and withdrew money from their accounts.

 

They said this was not the first time they had been subjected to violent crimes and despite reporting the previous cases to the police, none of the perpetrators had been brought to book.

 

They said the attacks on them and the overall deteriorating security situation had forced them to weigh their options and despite their "love for Lesotho" built over more than two decades of investment, they were considering moving to more stable countries like Mauritius, Tanzania and Angola.

 

These countries are said to be cheaper and closer to the export markets with ports of their own as opposed to landlocked Lesotho. More importantly they offer better security against violent crimes such as shootings and armed robberies.

 

A key shareholder in the two companies even flew into the country in the aftermath of the incident. The investor told this publication that they were a market leader in the textile industry with more than 26 years of experience in Lesotho as well as operations in countries such as Mexico, Bangladesh and Taiwan. He said their business spanned five companies in Lesotho with the first having been established in 1991.

 

He said despite the emergence of new, cheaper and stable alternative investment destinations such as Angola, Mozambique and Ethiopia which had previously been blighted by civil wars, they had stuck to their guns and committed to Lesotho because of the strong bond they share with workers, government and related industries.

 

However, he said all that was now at risk.

 

The investor said the only thing keeping them in Lesotho at a time of political uncertainty and escalating production costs were the relations they had established with workers and other industries in more than 20 years since they first set up shop. He said while they valued these relationships, this could not however, be at the expense of their safety.-Lesotho Times.

 

 

 

Uganda: Govt Seeks to Extend Rail Network to South Sudan

Finance Minister Matia Kasaija has said if funds are available, government will extend the rail line to South Sudan.

 

Speaking during the handover of office to the new Uganda Railways Corporation managing director Mr Kasaija said being the cheapest means of transport, railway investments needed to be prioritised.

 

"If we can now rehabilitate the metre gauge railway all the way to Tororo, and if money allows, we may have to build it up to South Sudan, because it is the cheapest mode of transportation," he said.

 

South Sudan is an integral part of Uganda's export market being the second highest destination after Kenya. The country, in 2019, earned Uganda $351.5m.

 

Therefore, extending the railway line would reduce the cost of exporters to the country.

 

Currently, there are ongoing works aimed at refurbishing the already existing rail network in the country.

Mr Stanley Sendegeya, the new managing director, said there is a $1b requirement to revive the entire network with works centred on refurbishing lines and upgrading slippers from steel to concrete.

 

"We already have works approved such as Tororo-Gulu for €47m, Kampala-Malaba for $360m, the estimate for Kampala-Kasese is $500m and Gulu-Pakwach is $100m," he said, adding Uganda Railways Corporation is currently looking for financiers for the works.

 

In its short and medium term plan, Uganda Railways Corporation also intends to expand its passenger service beyond Kampala-Namanve.

 

Mr Sendengeya said there are plans to expand the passenger service to Kyengera and Port Bell, with longer term goals of moving to Jinja and Mityana in five years.

 

However, Uganda Railways Corporation still suffers numerous challenges, key among them, vandalism and encroachment on its land, which limit its ability to realise development.

 

Mr Sendegeya, who replaced Mr Charles Kateeba, has set an agenda for Uganda Railways Corporation to move forward, targeting the private sector.

 

In a model dubbed transit oriented, URC is targeting the private sector to invest in non-core areas of the business such as warehousing and hospitality.

 

During a press briefing in Kampala recently, Mr Kateeba, highlighted the role of privates sector in the transformation journey of the country's rail business.

 

"That model is to ensure that we bring private sector on board, if we can build a line then the private sector builds the warehouses and silos, that is the model we are going to adopt and it is the journey ahead of us," he said.-Monitor.

 

 

 

Malawi: Low Investment in Nutrition Projects Worries Oxfam

Lilongwe — Oxfam Malawi has said investment in nutrition was still a small portion of overall domestic budgets.

 

Livelihoods Resilience Programme Manager, Oxfam Malawi, Steve Kuliyazi said this Tuesday during the Inception meeting for "Increasing Resource Allocation and Accountability for Nutrition Sector in Malawi Project" at Ufulu Gardens in Lilongwe.

 

He said the trend indicates a persistently low nutrition allocation over the years with proportions at 0.6 percent, 0.5 percent 0.9 percent and 0.5 percent between 2016/2017 to 2019/2020 national budgets respectively.

Kuliyazi added that low size budget allocated for nutrition related initiative and programmes suggest that nutrition is marginalized programmatic expenditure.

 

"Leveraging on the power of the media, this project will focus on lobbying for increased allocation and accountability for nutrition resources at national, district and community level,

 

Kuliyazi said the project would build on the lessons and experiences of European Union (EU) funded Oxfam's Scaling Up Nutrition Project which was implemented in Lilongwe Salima, Nkhotakota from December 2016 to January 2020 and GIZ Nutrition Project in Dowa and Dedza.

 

He asked participants to the meeting to make more inputs in order improve of deliver of the new project.

 

GIZ funded by Germany Cooperation, Malawi Food and Nutrition Sector Programme, (FNSP) Team Leader, Martina Kress said the implementation of Nutrition programmes are very crucial and needs the involvement of a lot of stakeholders.

She said the projects should be able to provided relevant nutrition information to women and mothers so that they could change their behaviours on nutrition issues.

 

"District Nutrition Coordinating Committees (DNCCs) should spearhead nutrition advocacy at council level so that budgetary allocations to the sector are improve. Councils should lobby to have a budget line for Nutrition activities." Kress suggested.

 

Director of Planning and Development (DPD) for Salima, Kelvin Harawa said District Councils have a responsibility to ensuring that Nutrition issues are taken on board in their planning.

 

He said Nutrition activities need to be supported with a budget line when allocating financial resources at Council level.

 

The Districts to benefit from the 50,000 Euros project running from July 2020 to June 2021 are Salima, Dedza and Dowa.

 

It is estimated that 5 percent of the under five children totaling to 10,000 will benefit from increased budgetary allocation based on 2018 Malawi Population Census.

 

It is estimated that 50,000 adolescents, pregnant and lactating women in the three districts will benefit from various messages on nutrition aired through radios and other channels of communication and intervention funded by increased resource allocation.-Malawi News Agency.

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


Afdis

AGM

virtual

13/11/2020 | 12:20pm

 


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 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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