Major International Business Headlines Brief::: 09 November 2020

[Bulls n Bears]

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Major International Business Headlines Brief::: 09 November 2020

 


 

 


 <https://www.gemportal.co.zw/> 

 


 

 


ü  'Biden Bounce' sees Japan shares hit 29-year high

ü  'Real living wage' rises to £9.50 an hour

ü  Boris Johnson to chair nuclear summit

ü  How will Joe Biden change US trade relations?

ü  Pandora paying all staff in full through pandemic

ü  Coronavirus: Hauliers included in Denmark restrictions

ü  Global Markets: Risk assets cheer Biden win, dollar nurses losses

ü  Apple says Pegatron put on probation after violating supplier code of
conduct

ü  Investors bet vaccine sparks revival in beaten down stocks

ü  Clash of consoles: New PlayStation and Xbox enter $150 billion games
arena - fight!

ü  Nissan plots digital course for car sales in a post-pandemic world

ü  Kenya-UK Trade Deal Heralds New Era of Sustainable Growing Market

ü  Kenya: MPs Seek to Probe Joho Firm Operations at Mombasa Port

ü  Kenya: Covid-19 - How the Virus Has Affected Taxi Business in Meru

ü  Uganda: An All-Female Taxi Service Born of Covid Downswing

ü  Nigeria: Govt to Commence Work On Itakpe-Lokoja Rail Line in 2021 -
Amaechi

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


'Biden Bounce' sees Japan shares hit 29-year high

Shares in Japan hit a near 30-year high on Monday, the first day of trading
following news that Joe Biden had won the US presidential election.

 

Japan's main share index - the Nikkei 225 - rose 2.5% in Asian trading to
hit a level not seen since 1991.

 

Stock markets across Asia also saw healthy gains with a positive sentiment
in Australia, China and Hong Kong.

 

Japan's rise came despite Japan Airlines' share price falling 15% after
announcing plans to raise new capital.

 

Investors in the region had been nervous following the uncertainty of a US
election deadlock, as voting took longer due to postal votes.

 

There are now hopes that the new administration will expand fiscal stimulus
in the US and widen measures to reduce the spread of Covid-19.

 

There was also optimism among Chinese investors, who saw a Biden win as
positive for trade and technology policy.

 

"The political uncertainty has largely gone as the election is over," said
Larry Hu, Head of China Economics at Macquarie bank.

 

 

In China, the main shares benchmark - the Shanghai Composite - rose almost
2% on Monday.

 

"The market is taking the Biden win as a positive, as he is not very likely
to fight a new trade war with China. The chance for a new tech war is also
drifting lower," added Mr Hu.

 

Relations between Donald Trump and China escalated during his four-year
tenure, sparking a tariff war in 2018 that imposed taxes on imported goods
from both countries.

 

"We think the Chinese authorities might be betting on a less confrontational
but more predictable Biden administration that they can work with," added
Bruce Pang, an economist at Hong-Kong based China Renaissance.

 

Fresh start

The biggest gainer in Asia was the Nikkei 225 which rose 2.5% hitting a high
not seen since late 1991.

 

Japan's stock market gains were also partly attributed to its car-making
sector with recent strong earnings from brands including Toyota.

 

"The Nikkei 225 is breaking out and is a poster child of strength and
momentum," added Chris Weston, head of research at brokers Pepperstone.

 

However, it was a different story at Japan Airlines, which fell the most
ever after saying it will raise as much as 168bn yen (£1.2bn) by selling new
shares to support its finances during the coronavirus crisis.--BBC

 

 

 

'Real living wage' rises to £9.50 an hour

Over 250,000 people who work for an employer who has voluntarily signed up
to the "real living wage" are set for a pay boost of 20p to £9.50 an hour.

 

This is not to be confused with the compulsory National Living Wage, which
is currently £8.72 an hour for anyone over the age of 25.

 

Real living wage employers in London will pay £10.85 an hour, a 10p rise.

 

The increase is designed to help workers and families through the pandemic.

 

Over 800 more employers have accredited with the Living Wage Foundation
since the start of lockdown, including Tate and Lyle, Network Rail, Capital
One and the All England Lawn Tennis Club.

 

They join a network of almost 7,000 employers across the UK who are already
paying this recommended rate to ensure all staff earn a wage that meets the
real cost of living, and covers everyday needs.

 

Latest research by the Living Wage Foundation shows that there are still 5.5
million jobs - 20% of all employees - still paying less than the real Living
Wage in the UK.

 

Northern Ireland had the highest proportion of jobs paying below the Living
Wage of 25.3%, while Scotland had the lowest at 15.2%.

 

Jobs held by women were more likely to be paid below the Living Wage in
April 2020 than those held by men.

 

This gap has narrowed slightly since 2012 and continued to narrow in
2019-2020, but 60% of below-Living-Wage jobs - 3.3 million jobs - were held
by women in April 2020.

 

The hospitality sector had the highest proportion of jobs paid below the
Living Wage at 70.8%, followed by the arts, entertainment and recreation
sector at 36.8%.

 

The highest numbers of jobs paid below the Living Wage are in the wholesale
and retail sectors with 1.3 million jobs, but they are much larger than the
hospitality and arts, entertainment and recreation sectors.

 

'It's important to pay people well'

Cook Food is a hand-prepared ready meals provider based in Kent with 90
retail shops and a home delivery service that started in 1997.

 

The firm accredited with the Living Wage Foundation in 2015 and says that it
has continued to pay its workers a real living wage even during a couple of
years when it wasn't doing so well.

 

"People are really important, a key part of our success," Cook Food's people
director Alison Payne told the BBC.

 

She said that being able to afford to make ends meet was a key problem for
young adults under the age of 25, who are not covered by the compulsory
National Living Wage.

 

One of her employees, aged 24, previously had to work two jobs - a total of
56 hours a week - in order to afford to live.

 

But after joining Cook Food and being paid a real living wage was earning
more working just 40 hours a week.

 

Since lockdown, the firm has increased its sick pay allowance, to help
employees who might have to self-isolate.

 

"If we want to provide really good service in our shops and provide really
good quality food, it's important to pay people well," said Ms Payne.

 

"We really do find the more we take care of people, the more they take care
of us."--BBC

 

 

 

Boris Johnson to chair nuclear summit

UK prime minister Boris Johnson is to meet with the chancellor and business
secretary later to discuss the role of nuclear power in the UK's future
energy strategy.

 

It comes ahead of a new 10-point plan for the UK to hit net zero carbon
emissions by 2050.

 

The report is expected to be published next week.

 

The government insists it remains committed to the construction of new
nuclear power stations.

 

New nuclear power stations are part of an overall strategy to decarbonise
the UK's electricity supply.

 

This afternoon's trilateral meeting between Number 10, Number 11 and the
Business Department discussed what form that should take.

 

Of the six sites originally identified a decade ago, three have seen
contractors pull out and only one is under construction at Hinkley Point in
Somerset.

 

The government is not expected to explicitly single out which project will
get the go-ahead, but officials told the BBC that Sizewell in Suffolk is the
only project ready to go if the government is to hit a target of starting
construction of new nuclear within this parliament.

 

While there is strong union support for the transfer of jobs skills and new
opportunities from Somerset to Suffolk, there is considerable local
resistance to a massive construction project, which activists say will pose
an ecological threat to important local wildlife areas.

 

The government is also considering bringing forward a ban on petrol and
diesel engines from its current official target of 2040, to 2035 or earlier.

 

It's thought the new time frame will be somewhere between 2030 and 2034.

 

The 10-point plan is also expected to include:

 

Its also expected that the government will set a new target for heating
homes with electricity-powered heat pumps.

 

The replacement of 25 million gas boilers in UK homes is recognised as one
of the hardest parts of the move to net zero carbon by 2050.

 

Although many energy industry experts remain sceptical that small nuclear
reactors can play a significant role, the BBC understands that the
government has big ambitions to progress this technology, and that it will
form an important part of the government's long term plans.

 

A detailed white paper on the future shape of UK energy policy is expected
in late November.--BBC

 

 

 

How will Joe Biden change US trade relations?

Chinese handbags, French wine and Scottish cashmere: all have been
weaponised by President Donald Trump, the self-proclaimed tariff man.

 

In his attempt to put "America first" - for jobs and profits - the president
liberally applied tariffs, charges to imports, from those nations he judged
as trying to give their producers an unfair advantage - with few discernible
benefits to his home territory.

 

How much of difference will a change of guard in the White House make to
American trade policy? Will that long-awaited US-UK trade deal finally be
struck? And can Italian parmesan makers catch a break?

 

Here's five things to be aware of:

 

1: Joe Biden's priorities aren't that different

Joe Biden's "Buy American" slogan from his campaign has echoes of the Trump
playbook.

 

With US unemployment having more than doubled during the course of the
pandemic, promises to bolster livelihoods on home soil have a potent appeal.

 

Mr Biden's pledges include penalising US firms that move jobs abroad. And
like Mr Trump, he harbours concerns over China's ambitions and way of doing
business.

 

2: Same dream, different means

But Mr Biden has very different ideas of how to triumph on the global stage.

 

President Trump opted to go it alone, using tariffs and threats against
China while attempting to coerce Europe into joining his battle against the
likes of Huawei.

 

Mr Biden prefers the idea of strength in numbers - a multilateral approach -
by getting traditional allies onside.

 

3: A reset of the EU trade relationship

That is likely to mean offering an olive branch to the EU, with an offer to
pour (lower tariff) oil on troubled waters.

 

The spat between US aircraft maker Boeing and European rival Airbus over
claims of unfair state help preceded President Trump. But it was he who
decided to levy tariffs on $7.5bn (£5,7bn) worth of European luxuries in
response.

 

Analysts feel Mr Biden will, at the least, shy away from escalating the
tariffs and may well remove existing ones - ditto those applied to imports
of steel and aluminium.

 

The threat of car tariffs is also likely to recede. But the producers of
Bordeaux wine may have to wait: with so much on the domestic agenda, tearing
down those barriers may take a backseat.

 

4: A less "special relationship"?

Irish border sign

 

And the UK may be even further back in that queue.

 

Although British trade officials have been wooing Mr Biden's team for some
time, they aren't likely to be in a hurry to sign a deal with the UK.

 

The incoming president is famously no fan of Brexit and has said that there
will be no deal if the Good Friday agreement is undermined.

 

That was after the UK's proposed Internal Market Bill risked the imposition
of a physical customs border between the Republic of Ireland and Northern
Ireland.

 

The UK government has quietly been nursing hopes that an agreement will be
in place by the middle of next year, before an arrangement to fast-track a
deal through Congress expires.

 

That might be dashed. But there could be a workaround: both Mr Biden and the
UK are eyeing membership of the Comprehensive and Progressive Agreement for
Trans-Pacific Partnership (CPTPP), a free-trade partnership of 11 Pacific
countries.

 

5: It's not just goods

There is more to trade than shipping containers lining ports.

 

For example, while President Trump viewed the World Trade Organization with
suspicion and derision, there are hopes that Mr Biden will focus instead on
encouraging reform and modernisation of the organisation, which policies
global trade.

 

There will, however, be some remaining tensions: the issue of a digital
services tax from Europe on the profits of primarily US tech companies
remains.

 

Ultimately, while there is potential for a change in trade stance from a new
president, his bulging domestic in-tray may distract him for some time.--BBC

 

 

 

 

Pandora paying all staff in full through pandemic

The world's biggest jeweller, Pandora, has no plans for the permanent
closure of any of its thousands of stores despite the coronavirus pandemic.

 

Chief executive Alexander Lacik told the BBC he also intended to continue
paying all staff in full.

 

The firm could "withstand a big drop in sales" before he would even start
considering store closures, he said.

 

At the height of the pandemic, 80% of the company's 2,700 stores around the
world were closed.

 

However, Pandora "kept its staff on the payroll". Even those among the
28,000 employees who were unable to work because stores were closed by
government restrictions were paid in full.

 

Mr Lacik is proud of that and said that as well as this being "a very good
decision" for the business, it was the "ethical thing to do" and the loyalty
to staff was now being rewarded.

 

He said: "Looking at how people have kind of returned that when stores
reopen, I think it was a fantastic thing to do."

 

This month, he reckons 18% of the stores will be closed as a second wave of
coronavirus sweeps across Europe. That is likely to hurt sales in the run-up
to Christmas, which is traditionally one of the busiest times of the year.

 

Alexander Lacik

As with many other companies, there has been a huge growth in online sales.
They almost doubled, growing 89% in the three months to the end of September
and accounting for 21% of the company's $648m (£493m) of sales.

 

Mr Lacik says that despite the huge growth in online, physical retail will
"continue being an important part of the industry at large", because
consumers want a "seamless" experience between the virtual world and the
physical world.

 

Just over a year ago, the company invested heavily in a big relaunch to
allow customers a more hands-on experience in-store.

 

The stores are "incredibly profitable" and Mr Lacik said his company would
not close any for good, because it was "not an average retailer".

 

LVMH and Tiffany make up over takeover dispute

Whether they are buying rings, bracelets or earrings, Mr Lacik concedes that
digital does not have all the answers. Customers "want to see it, they want
to touch it, they want to feel it", he said.

 

However, they increasingly have an initial look online, then go into a store
for advice before making a purchase, either in-store or online.

 

"The most successful players now, they are good at integrating all of this,"
he said.

 

On average, Pandora says, it sells three pieces of jewellery a second. It is
perhaps best known for its charm bracelets, which let customers choose
different symbols to personalise their pieces. They are seen as critical to
its profits, which started to fall a few years ago, but have improved after
a turnaround plan was launched by Mr Lacik.

 

Frans Hoyer, an analyst at Swedish bank Handelsbanken, said the company
"lost focus on its core products and its messaging to customers, which led
sales to fall". Pandora, however, was "always profitable".

 

This underlying strength, combined with fewer promotions and raising money
from investors, meant the company could keep paying its staff during
lockdowns, Mr Hoyer added.

 

"Keeping staff on the payroll so they were ready to go when stores reopened,
and a continued spend on advertising when others weren't, has helped the
jeweller through the pandemic."

 

Mr Lacik said recent collaborations with brands such as Harry Potter and
Star Wars had definitely broadened the appeal of the jewellery, but were
"never going to be the core of Pandora".

 

Having the option to dangle Darth Vader or R2-D2 from your wrist "keeps the
brand interesting and keeps it fresh", he added.

 

Celebrity tie-ups have also helped, but Mr Lacik said it was important these
partnerships had authenticity, or customers would not be convinced to part
with their cash.

 

The new face of Pandora is Stranger Things and Enola Holmes star Millie
Bobbie Brown, who Mr Lacik says "was a Pandora fan even before we started
that collaboration".

 

It doesn't hurt that she also has 31 million Instagram followers and is
hugely influential amongst the young women who are Pandora's core market.

 

Analysts say these tie-ups have helped keep the company's finances healthy.
In the first nine months of this year, sales are down only 2% on the same
period a year ago, at almost $1.8bn.

 

Mr Lacik said: "I could lose half the sales and I'd still be profitable in
most of my stores."

 

Store closures had a broader impact too, he said, adding: "What we see, for
instance, in places where we have closed down physical retail, my ecommerce
retail also goes down. So it's a combination of the two. That seems to be
the sweet spot, at least now."--BBC

 

 

 

Coronavirus: Hauliers included in Denmark restrictions

Freight drivers who are not UK citizens and have been through Denmark in the
last fortnight are warned they will be turned away from the British border.

 

It follows concern over a new coronavirus strain that has spread from mink
to humans.

 

Returning drivers who are UK citizens will have to self-isolate for 14 days
along with their households.

 

It comes as further 156 people in the UK were reported to have died within
28 days of a positive coronavirus test.

 

It brings the overall UK death toll to 49,044, according to government data.
Both the number of UK deaths and the daily cases - 20,572 in the past 24
hours - mark a significant drop on previous days, but Sunday figures are
often lower due to a lag in weekend reporting.

 

The new rules for hauliers returning from Denmark began at 04:00 GMT on
Sunday - and follow a ban on all non-UK citizens coming to the UK from
Denmark.

 

Any UK citizens who have travelled to Denmark must isolate for 14 days,
along with their household.

 

Passenger planes and ships carrying freight (as well as passengers) from
Denmark will also not be allowed to dock at English ports.

 

Cabin crew are also no longer exempt from the quarantine rules - which
Ryanair described on Saturday as a "bizarre and baseless" move.

 

The airline said it had cancelled all flights to and from Denmark while the
rules remain in place, and urged Mr Shapps to reverse the decision. Scottish
airline Loganair said it has suspended flights between Scotland and Denmark
from 9 to 22 November.

 

The Department for Transport (DfT) said the latest rules followed the
release of "further information" from health officials in Denmark, where
some 200 people have been found to have mink-related mutations of virus,
most of them connected to farms in the North Jutland region.

 

The travel ban and extra requirements will be reviewed after a week, the DfT
has said.

 

Asked about the restrictions by the BBC's Andrew Marr, Foreign Secretary
Dominic Raab denied the suggestion they were "draconian", insisting the
government had taken "safe and responsible steps" in light of the "new and
evolving" science on the mutated virus strain.

 

He told the Andrew Marr show: "I wouldn't describe it as draconian taking a
precautionary measure that if and when we come up with a vaccine it can't be
sidestepped by a mutation in the virus that the Danes have found through
their mink population.

 

"I think that's a common sense measure that the public would expect us to
take."

 

John Littleton, who returned from a business trip in Denmark on Friday, says
he would have done things differently if he had known how rules would have
affected his family.

 

"I was in Denmark on business. My flight back was Friday afternoon.

 

On Friday morning a colleague told me that Denmark had been put back on the
restricted list. I assumed I would have to self isolate for two weeks. There
was no official contact.

 

Once home I started self-isolating. On Saturday morning I missed a call from
the tracing service who said they would ring me on Sunday.

 

Last evening, two police officers arrived at my home. They read out a
statement recommending the whole household self-isolate for two weeks. It
was rather ambiguous - but the police said we would be fined if we didn't.

 

Both my son and his partner now can't go to work. She is a teacher, he
manages an electrical retailer. Not being at work causes real problems.

 

When the announcement about Denmark was made, there was no that the entire
household would have to self-isolate. If it had said that, I would have done
things differently - perhaps I would have stayed out there or isolated
somewhere else upon my return.

 

I just don't understand why such extreme measures are being taken. I was not
in the north of Denmark and followed all social distancing guidelines while
there. Denmark are only imposing local restrictions.

 

Why can I not simply be tested, so that the rest of the household can carry
on with work? As usual, the whole situation is being handled in a haphazard
way with little thought."

 

Presentational grey line

Denmark is the UK's largest source of imported pork - including bacon - with
machinery among the other major import items.

 

Rod McKenzie, managing director of policy at the Road Haulage Association,
said the latest restrictions were "significant and unique" because lorry
drivers working in supply chains have been "exempt" from travel quarantine
rules.

 

He suggested that whilst different organisations, such as supermarkets, may
have their own plans to address any supply issues, he warned that if the
restrictions continue for a "long time" there could be "a potential
disruption to bacon supplies in the UK".

 

Meanwhile, Logistics UK, a freight trade body, said the industry was "agile"
so "importers can switch between transport modes to ensure that products
still arrive".

 

In a statement it added: "Much of the ferry transport between the UK and
Denmark is sent in unaccompanied trailers, so drivers simply collect their
loads from ports, with no need to travel across the border.

 

"The industry will continue to maintain high levels of vigilance and follow
all necessary health protocols to protect the UK."

 

In England, where a new national lockdown came into force on Thursday,
people are still allowed to travel overseas for work or education trips.

 

Leaving home to go on holiday is currently banned for most people in the UK.

 

Denmark's Minister of Foreign Affairs Jeppe Kofod called Mr Shapps' travel
announcement a "very drastic step" and said he had discussed it with UK
Foreign Secretary Dominic Raab on Saturday.

 

Denmark had been taken off the UK coronavirus travel corridors list on
Friday after it first became apparent the mutated form of coronavirus was
present in the country. It meant any passengers arriving in the UK from
Denmark would need to self-isolate after their arrival.

 

The Department for Health and Social Care estimates that between 300 and 500
people have arrived in the UK from Denmark in the last 14 days.

 

Officials will contact anyone in the UK who has been in Denmark in the last
fortnight to make sure they also self-isolate.

 

--BBC

 

 

 

Global Markets: Risk assets cheer Biden win, dollar nurses losses

SYDNEY (Reuters) - Shares surged, oil prices jumped and the U.S. dollar
remained weak on Monday as expectations of fewer regulatory reforms and more
monetary stimulus under U.S. President-elect Joe Biden supported risk
appetite.

 

The Democratic candidate’s election victory was already largely priced in by
markets, which had been trading with the view of a Biden presidency and a
Republican-controlled U.S. Senate since last week.

 

E-mini futures for the S&P 500 jumped more than 1.5% on Monday while Nasdaq
futures rallied over 2%, signalling a positive start for U.S. markets.

 

Eurostoxx 50 futures gained 1.7%, Germany’s DAX futures climbed 1.8% and
FTSE futures rose 1.4%.

 

The mood was also upbeat in Asia, with all major indexes in the green.

 

MSCI's broadest index of Asia Pacific shares outside of Japan .MIAPJ0000PUS
jumped 1.4% to 614.73 points, the highest since January 2018. It climbed
6.2% last week to clock its best weekly performance since early June.

 

“While lots of attention was given to Trump vs Biden, markets have reacted
strongly to the (likely) split congress, which means more confidence that
interest rates will be lower for longer,” said Dave Wang, portfolio manager
at Nuvest Capital in Singapore.

 

“The best opportunities now lie within segments of emerging markets, in
particular China and North Asia. I believe earnings momentum and valuation
put China in a very attractive risk/reward position.”

 

Chinese shares started higher with the blue-chip CSI300 index .CSI300 up
2.2% on hopes of better Sino-U.S. trade relations under Biden.

 

Japan .N225 rose 2.4% while the main indexes of Australia .AXJO, Hong Kong
.HSI and South Korea .KS11 gained 1.5% each.

 

Equities rallied hard last week, with the S&P500 .SPX up 7.3%, clocking the
best gain in an election week since 1932, according to National Australia
Bank analyst Tapas Strickland.

 

Matt Sherwood of Australian fund manager Perpetual, however, said Biden’s
victory did not necessarily warrant a tweaking of his portfolio.

 

“In the end, we think the U.S. economy is still fairly fragile and growth’s
slowing down,” Sherwood said.

 

“You could potentially gravitate your portfolio more towards higher-beta
type markets, such as emerging markets, and there is potential for better
prospects in the energy space than would have been the case with a Democrat
clean sweep.”

 

Oil prices jumped on Monday as investors cheered Biden’s victory, shrugging
off worries about lacklustre demand amid rising global coronavirus cases.

 

Brent crude added $1 to $40.48.

 

Analysts said the outlook might get tougher from here as investors focus on
Biden’s ability to expand fiscal stimulus and measures to reduce the spread
of COVID-19.

 

The United States saw a record number of new coronavirus infections last
week, with the total number of cases nearing 10 million.

 

U.S.-based wealth manager Jim Wilding at Confluence Financial Partners in
Pennsylvania added a word of caution considering the S&P 500 .SPX is not far
from all-time highs and equity valuations are generally at heady levels.

 

“While we remain positive over the intermediate term outlook and believe
divided government reduces the chances of a bear case scenario playing out,
we would refrain from unbridled enthusiasm at current levels,” he noted.

 

A fiscal stimulus plan is still possible despite a divided government,
analysts said, though a larger package is less likely. That puts the
spotlight on the U.S. Federal Reserve to do more to bolster the world’s
largest economy.

 

As a result, the dollar has weakened in recent days while growth proxies
such as the Australian dollar have rallied with the Biden presidency seen
less likely to be confrontational on trade.

 

The U.S. dollar was mostly flat against the yen at 103.36, after slipping
about 1.3% last week.

 

The Aussie scaled a 1-1/2 month high of $0.7297, having jumped 3.3% last
week as trade-exposed currencies got a fillip from Biden’s predicted
victory.

 

Investor focus will also be on sterling and the euro this week with Brexit
trade negotiations coming to a head with the EU summit on Nov. 15.

 

Later in the day, the Bank of England’s chief economist will give a speech
on ‘The economic impact of coronavirus and long term implications for the
UK’.

 

The euro, which climbed 1.9% last week, was a shade higher on Monday at
$1.1891. Sterling rose 0.2% to $1.3183.

 

 

 

Apple says Pegatron put on probation after violating supplier code of
conduct

SHANGHAI (Reuters) - Apple AAPL.O has put its Taiwanese supplier Pegatron
4938.TW on probation after finding that the company violated Apple's
supplier code of conduct, the iPhone manufacturer said on Monday.

 

“Several weeks ago, we discovered Pegatron - one of Apple’s suppliers in
China - violated Apple’s Supplier Code of Conduct in its administration of a
student work study program,” it said in a statement.

 

“Apple has placed Pegatron on probation and Pegatron will not receive any
new business from Apple until they complete all of the corrective actions
required.”

 

 

 

Investors bet vaccine sparks revival in beaten down stocks

SYDNEY/LONDON (Reuters) - Investors expecting an imminent COVID-19 vaccine
are beginning to buy bank stocks and industrials in anticipation of a
roaring return in consumer confidence, though many remain wary of risks in
sectors ravaged by the pandemic.

 

The development of some kind of preventative medicine is seen as the best
chance of halting the coronavirus, which has killed 1.2 million people and
is the top issue for money managers eyeing the next major shift in financial
markets.

 

As the market hype around the U.S. election ebbs, investors are now
preparing for good vaccine news, which they believe is a matter of when, not
if.

 

“It’s going to be absolutely massive,” said Stuart Oakley, head of cash
currency trading at Nomura in London. “If we get a vaccine, we’re going to
see all that pent up demand coming out.”

 

Of the roughly 45 vaccines undergoing human trials, those from Pfizer PFE.N
and Moderna MRNA.O are seen as possibly winning regulatory approval this
year, with AstraZeneca AZN.L not far behind.

 

Investors are looking beyond an expected “excitement rally” and at
longer-term beneficiaries and short-selling opportunities.

 

“What we’ve done is given ourselves some optionality for a recovery trade,
or a vaccine trade, by having some exposure to financials,” said Binay
Chandgothia, a Hong Kong-based portfolio manager at Principal Global
Investors.

 

Banks benefit from increased economic activity and would be helped if bond
yields rose, he said, adding he had increased exposure to growth-sensitive
small companies and would buy stocks in Singapore and Hong Kong if trade and
travel pick up.

 

Brian Jacobsen, senior investment strategist at Wells Fargo Asset Management
in Wisconsin, said industrials offered broad exposure to a rebound in
confidence in areas from building products to aviation.

 

Deutsche Bank manages a “vaccine basket” of Singapore dollars and Thai baht,
seen benefitting from increased trade and tourism, against the Philippine
peso, which is weighed by rising imports.

 

Financials .dMIWO0FN00PUS and industrials .MIWO0IN00PUS have gained with the
broader market this month, but badly lag a roughly 5% gain in world stocks
.MIWO00000PUS this year. The baht has also surged recently against the peso
PHPTHB=R.

 

THREAD THE NEEDLE

Investors are also setting up short positions.

 

Shinji Naito at Japan's SPARX Asset Management, which has $12 billion under
management, hopes a vaccine could trigger a payoff from shorts in stocks
pumped up by the pandemic, such as some technology firms, while helping long
investments such as realtor Tokyo Tatemono 8804.T.

 

Dave Wang, a portfolio manager at Nuvest Capital in Singapore, said
long-short pairs could wring gains from what is likely to be an uneven
recovery.

 

For example, airports, which charge per aircraft regardless of their loads,
could perform better than airlines hit by low patronage and rising fuel
costs.

 

Of course, not everyone is scrambling for a piece of the action amid
questions about the timing, efficacy and distribution of any vaccine still
remaining.

 

“You’re better off being a bit too late than too early,” said Hugh Dive,
chief investment officer at Atlas Funds Management in Sydney, noting delays
would leave under-pressure companies needing to raise more money quickly.

 

Others, however, feel it is now safe to bet on a global rebound, which a
vaccine would boost.

 

“I think there’s two different trades,” said Sean Taylor, chief investment
officer in Asia for German fund manager DWS. “A vaccine trade and a cyclical
trade. I’m more positioning in cyclicals,” he said. “If we got much more
credible data for vaccines, then I’d add services.”

 

 

 

Clash of consoles: New PlayStation and Xbox enter $150 billion games arena -
fight!

TOKYO/CHICAGO/STOCKHOLM (Reuters) - Think Michelangelo vs Da Vinci. Muhammad
Ali and Joe Frazier. Batman v Superman. Another epic rivalry is rejoined
this week when Sony and Microsoft go head-to-head with the next generation
of their blockbuster video-game consoles.

 

Sony, whose PlayStation 5 (PS5) takes on Microsoft’s Xbox Series X and
Series S, is widely viewed as being in pole position to capitalise on a
pandemic-driven boom in consumer spending that has buoyed the $150 billion
video game industry.

 

The Japanese company’s deep bench of games and broader fan base - it has
sold over 100 million PS4s, winning the battle of the previous generation -
should see it retain its edge over its American archrival, according to
industry experts.

 

“People who own Xbox tend to buy the new Xbox, while people who own
PlayStation tend to buy the new PlayStation,” said Wedbush Securities
analyst Michael Pachter.

 

Yet the industry is changing and cloud gaming is on the rise, allowing games
to be streamed without bulky hardware. This could curb console sales in
coming years, analysts say, a shift that could benefit Microsoft.

 

The two consoles - the first to be released by the two companies for seven
years - are eagerly awaited; the Xbox will go on sale on Tuesday, and the
PS5 two days later in core markets, costing about $300 to $500 apiece.

 

The race to order the devices in advance actually began weeks ago, though
blink and you might have missed it. Pre-orders of Sony’s PS5 sold out within
minutes on many retail sites, for example, frustrating fans.

 

Julian Mercado, 17, managed to reserve a PS5 from Walmart.com WMT.N just
minutes after pre-orders started on Sept. 16, knowing he'd be up against a
legion of gamers.

 

“It’s exactly like shopping on Black Friday,” said the high school student
from Dallas, who has been playing video games with his dad since he was
five. “You show up early, you walk away with something good. You show up too
late, you’ll walk away with nothing.”

 

PLAYING IN A PANDEMIC

Sony 6758.T might have the edge, but the stakes are high for the Japanese
company. Its gaming business is its biggest cash cow; in its fiscal 2019 the
division, which includes hardware, software and services, brought in close
to a quarter of its roughly $77 billion group sales and nearly 30% of its
$7.9 billion operating profit.

 

Microsoft MSFT.O does not break out the results of gaming, though it's a
smaller part of its business than for Sony. It also does not disclose
hardware sales but the current Xbox One is estimated by analysts to have
sold 50 million units.

 

For the other big hardware player, Japan's Nintendo 7974.T, sticking to
consoles is paying off with it hiking forecasts last week following elevated
demand for its Switch.

 

 

The PS5 will retail at $499.99 or $399.99 for a digital-only version, while
the Xbox Series X will sell for $499.99 and the lower-spec Series S for
$299.99.

 

About 5 million PS5s are forecast to be sold this year, versus 3.9 million
of the new Xboxes, according to media research firm Ampere, with combined
sales expected to be higher than the previous generation.

 

See GRAPHIC tmsnrt.rs/3l3Rpe3 of PlayStation v Xbox sales forecasts:
tmsnrt.rs/3l3Rpe3

 

“The pandemic is expected to transform the U.S. holiday shopping season,”
said Jason Benowitz, a senior portfolio manager at Roosevelt Investment
Group. “Playing from home has become a way for some to safely socialize.”

 

Sony’s games depth is supported by in-house studios behind exclusives such
as “Marvel’s Spider-Man: Miles Morales”. By contrast the new Xbox, say games
experts, will lack killer launch titles, with the latest in its flagship
“Halo” series pushed back to next year as the pandemic hits development.

 

Cloud gaming growth could hand the U.S. software giant an advantage in
coming years, though. Although both companies have moved to offer services,
Microsoft has been more aggressive.

 

Its Xbox Game Pass subscription service has grown rapidly; it offers more
than 100 titles including brand-new games and has over 15 million users.
Sony has been reluctant to make its hottest titles available on services
like PlayStation Now, fearing this could cannibalise sales of big-budget
games.

 

‘DEMAND OUTSTRIPS SUPPLY’

 

The pandemic, while fuelling some demand, has also constrained Sony and
Microsoft’s production, according to industry experts, who see shortages
stretching into 2021.

 

“Demand will outstrip supply so there’s going to be some people who won’t
get a-hold of the console when they want to,” said Piers Harding-Rolls,
director of Ampere’s games research.

 

Sony has announced that retailers like Walmart, Best Buy BBY.N and Target
TGT.N will sell the PS5 exclusively online when it launches on Nov. 12, to
prevent people from camping outside stores during a pandemic.

 

Walmart stands to sell as much as $1.1 billion worth of new consoles by the
end of January, according to Wedbush. It dominates the U.S. market along
with GameStop GME.N, each with a roughly 30% share, while sales of consoles
at Target and Best Buy comprise about 15% apiece, the research firm said.

 

Target said it was working closely with its vendors to secure enough
inventory. Some shoppers who had reserved consoles told Reuters that Target
had said they may receive them days after the launch date.

 

Walmart said it would start selling the new consoles at launch but declined
to comment on whether it would have enough stock to meet demand. Best Buy
also declined to comment on whether it would be able to meet demand, while
GameStop did not respond to requests for comment.

 

For DeAnthony Thicklin, a casino attendant who reserved his PS5 on
Target.com in September, the priority is to get their hands on a console on
the launch day itself.

 

The 25-year-old offered some advice.

 

“Have all your card information set up so the only thing you have to do is
click,” he said. “Don’t hesitate. Be quick.”

 

 

 

Nissan plots digital course for car sales in a post-pandemic world

BEIJING (Reuters) - As COVID-19 threw a wrench into the cogs of car
retailing, a senior Nissan board member challenged the chief operating
officer to explain what the automaker was doing to adapt to a new era where
customers may be reluctant to roam showrooms.

 

The operating chief, Ashwani Gupta, told the board meeting in late July that
Nissan was racing to create a “complete, end-to-end digital journey”,
according to three people familiar with the discussions.

 

He said this would allow consumers to research cars online, have models
delivered to their homes for test drives and make purchase plans without
ever having to visit a dealership, if they chose not to do so, the sources
told Reuters.

 

The meeting offers an insight into how the pandemic is pressuring automakers
in all major markets to revamp their strategies to handle more vehicle sales
online, veering away from the traditional showroom approach.

 

The change is being driven by a shift in consumer behaviour.

 

The number of cars sold via Nissan’s websites in China, Europe and North
America combined accounted for 11% of the company’s overall sales in those
markets in the first half of this year, according to the sources, who
declined to be named because they are not authorized to speak to reporters.

 

That compared with 4-5% in the same period last year, although digital
volumes were not as closely monitored then, said one of the three people, a
senior Nissan executive.

 

“I would say these new buying behaviours, which have come up during the
COVID era, are going to stick and become permanent,” the executive added.
“The pandemic is changing the way we work, the way we communicate. The same
is also true with buying cars.”

 

Some of the details and data are expected to be shared during a news
conference on Nov. 12 when Nissan announces results for its fiscal second
quarter ended Sept 30. Japan’s second-largest carmaker has warned of a
record 470-billion-yen ($4.5 billion)loss this fiscal year ending March
2021.

 

A Nissan spokesman in Yokohama said there was strong demand for online
shopping, which had become “irreversible with COVID-19” and the firm was
addressing this in partnership with dealers.

 

“Nissan’s ‘Shop at Home’ experience puts customers in control at every step
of the journey: to choose to shop both online and at physical dealerships,”
he added.

 

The company’s drive is initially focused on North America and China, its
biggest markets where digital sales are more advanced than elsewhere,
according to the sources.

 

In the United States, online customers can search for a specific car from
the inventories of all Nissan stores in a given area, not just one store’s
stock.

 

In China, consumers can’t do the same, but they are open to buying cars
online; in the first nine months of this year, 17% of the roughly 758,000
new Nissan cars sold there were bought online, the sources said.

 

They are what Nissan defines as digitally-acquired buyers, who visit the
company’s main e-commerce sites — Chebaba in China and NissanUSA.com — and
leave their contact information, and then complete purchases either
completely or partially online.

 

AKATSUKI COPPER, ANYONE?

Shifting more sales online is, however, a big challenge for the industry
because it deviates markedly from the familiar showroom strategy, and could
face resistance from franchise dealers, who have a symbiotic relationship
with carmakers.

 

The stakes are especially high for Nissan, because it was struggling even
before the pandemic struck and hammered auto sales. It was grappling with a
host of financial woes that resulted from an aggressive expansion pursued by
ousted leader Carlos Ghosn, and a consequent lack of new car models.

 

The digital drive is viewed by senior executives as being beneficial from a
profitability angle because online sales allow the company to reduce
operational waste in distributing and marketing cars, and improve
data-gathering, two sources said.

 

For example, this summer Nissan opened a dedicated website for the new Ariya
electric sport-utility vehicle, due to be launched globally next year.

 

In the first four days, 1.2 million people visited and Nissan learned, as
customers gave their preferences, that the most popular features globally
were a lounge-like interior and connected services, according to the senior
Nissan executive.

 

In Europe the most favoured colour was a two-tone black and Akatsuki copper
option, the person said.

 

According to the source, 56% of European visitors preferred the
four-wheel-drive version and 18% the two-wheel-drive, while the rest were
undecided or did not leave preferences. U.S. customers were more evenly
split between the two drive options.

 

That data allowed Nissan to be more precise in ordering parts and systems
for different regions to match demand, said the executive.

 

“Marketing for us is increasingly not dictated by gut feeling,” the person
added. “It’s more data-driven and precise.”

 

‘IT’S THE WAY WE LIVE’

 

Chee-Kiang Lim, China managing director of Detroit-based consultancy Urban
Science, said legacy carmakers were lagging pure electric vehicle companies
in terms of online sales, with Tesla, NIO, XPeng and WM the leading digital
players.

 

Among traditional automakers, mass-market players like Nissan, Toyota and
Volkswagen are most advanced in China, with concrete initiatives to push
online sales, he added.

 

“Volkswagen for example has trained their dealers to do live-streaming and
they would even do a live-streaming of a test drive. A sales person would be
driving a car and live-stream directly to you.”

 

Another of the Nissan sources, who is close to the board, said the main
purpose of the e-sales drive was to reduce the number of dealer visits an
average customer makes to buy a car - to one or two, from several.

 

Zhang Weichen, a Beijing primary school physical education consultant,
bought his first car this summer, a Nissan Sylphy sedan, without visiting a
dealer until deep into the process.

 

By the time he visited the dealer, to view the actual model he chose and
negotiate a final price, the 32-year-old had studied the car by test-driving
a friend’s Sylphy and using virtual-reality walkarounds available on
Nissan’s Chebaba, and picked up a purchase rebate coupon for the car on the
site.

 

“We already buy all sorts of things online. It’s the way we live,” Zhang
said. ‘If I buy a car again to replace my Sylphy I would do so mostly online
again.”

 

DEALERS DEALT DILEMMA

One big question looms, though: Will dealers who have invested millions of
dollars in their showrooms see Nissan’s drive as a threat?

 

A board member put that to Gupta during the late July meeting, according to
two of the people familiar with the discussions.

 

In response, Gupta said the new sales model was a hybrid closely coupled to
physical dealers and was not an effort to cut franchise stores out or reduce
their margins, the people said.

 

Gupta told the board Nissan needed dealers to deliver cars and provide
maintenance and repair services – and that they represented a competitive
edge over Tesla and other newcomers who were trying to sell cars directly to
consumers without franchise stores, the sources added.

 

Several franchise store operators in China said in interviews with Reuters
that most Nissan dealers were going along with the company’s online drive.

 

“Under the pandemic, customers are very dependent on online channels, and so
are dealers,” said Yin Yufen, general manager of a big Nissan store in the
southern city of Guangzhou.

 

She said about 30% of people who bought cars from her store came via online
in recent months, versus 20% a year before.

 

“That’s not a problem because we have a final say on price, so it doesn’t
really affect our profit margins and bonuses.”

 

Another dealership executive, the head of a large chain, said selling new
Nissan cars was such a tough proposition under current conditions that many
dealers were happy to hand over more control of the process.

 

“Dealers don’t want to unnecessarily take on more inventories from Nissan,
because we’re not making money,” said the boss, who declined to be named due
to the sensitivity of the subject.

 

“We don’t care if Nissan takes more control of the selling process, as long
as they give us kind of a fixed margin for service,” he added.

 

“You do whatever you like, Nissan.”

 

($1 = 104.6700 yen)

 

 

 

Kenya-UK Trade Deal Heralds New Era of Sustainable Growing Market

After months of negotiations, Kenya and the United Kingdom have concluded a
Strategic Economic Partnership Agreement that will support our exporters to
expand their presence in the UK and European Union markets.

 

The Kenya-UK EPA heralds a new era of trade and development cooperation
post-Brexit. Our neighbours stand to benefit, too, as the new framework
replicates the East African Community EPA with the EU that facilitates free
access of our exports to Europe without duty and quota restrictions.

 

The deal, signed on November 3, marks a significant step towards realising
the vision and mutual benefits that President Uhuru Kenyatta and British
Prime Minister Boris Johnson envisaged when they agreed on a long-term trade
and economic partnership to cement our long-standing relations after the UK
exits the EU on December 31.

 

Negotiators ensured that our framework is consistent with the EAC Customs
Union and supports Africa's quest for a continental economic community in
which African countries will freely exchange goods and services as envisaged
by the African Continental Free Trade Agreement (AfCFTA).

 

Comprehensive package

 

The Kenya-UK EPA will deliver a comprehensive package of benefits, including
secure, long-term and predictable market access for EAC exports and enhanced
privileges for agricultural goods, even if they pass through the 27 EU
countries. Our farmers and business community, particularly agribusiness,
such as flowers, tea, coffee and fresh produce, are assured of a sustainable
growing market.

 

Moreover, the UK and other foreign investors have an opportunity to bring
more foreign direct investment (FDI) into EAC, anchored on Kenya's strategic
position as the regional financial, technological innovation, and economic
powerhouse. Investments in our key productive sectors -- particularly
agriculture, manufacturing and technology -- boosting job opportunities for
our youth and improve the growth of our economy.

 

We are on the verge of a significant leap in economic and social prosperity,
supported by increased export earnings and expanded FDI in our priority
sectors. The UK has assured us of their commitment to increasing their
development cooperation to support the government's "Big Four Agenda"
projects and Kenya Vision 2030 development programmes, providing further
stimulus for equitable socioeconomic transformation.

 

The UK is, by far, the largest foreign investor in Kenya. The value of
British investment in Kenya was estimated at £2.7 billion (Sh385 billion)
billion in 2017 with over 220 UK firms setting up house in the country.

 

Overall, the UK is one of the leading trading partners for Kenya outside the
EAC. The two countries trade Sh70-90 billion worth of goods annually. Kenya
exports to the UK cut flowers, fresh vegetables, tea, coffee and other
products. In turn, it imports machinery, vehicles, pharmaceutical products,
electrical and electronic equipment, beverages, textiles, paper and paper
products from the UK.

 

Trade balance

 

We earn more from our exports to the UK than we spend on imports; so, the
trade balance is in our favour. January to August figures show that, despite
the impact of Covid-19 on international trade, Kenyan earned Sh34.9 billion
from exports to the UK and spent Sh18.9 billion on imports from there. The
net was Sh18.9 billion for Kenya.

 

Other important issues tackled in the deal include barriers to free trade
flow and shared approaches to trade and investment, like the need for common
rules of origin and broader acceptance of product standards. In the future
rounds of trade talks, we will pursue discussions on investment, services
and e-commerce, critical to enhancing value chains, as well as the need to
deepen domestic reform and trade liberalisation.

 

The EPA is a great opportunity to build on these deep and mutually
beneficial relations. Besides, for EAC, it will be our springboard for
deepening market access to other developed markets in Europe, America and
Asia.-Nation.

 

 

 

Kenya: MPs Seek to Probe Joho Firm Operations at Mombasa Port

A parliamentary committee has lined up the Ministry of Transport for
investigations over the activities of Portside Freight Terminals Limited
(PFTL) at the Mombasa port following a litany of complaints by the Dock
Workers Union (DWU).

 

This even comes as Kenya Ports Authority (KPA) rubbished claims of favouring
the Mombasa Governor Hassan Joho family-linked port firm in its quest to
operate a new grain bulk terminal at the port.

 

Pokot South MP David Pkosing, who chairs the Transport, Public Works and
Housing Committee that is investigating the matter, said the committee would
summon Transport PS Solomon Kitungu "to shed more light on the matter".

Also expected before the committee is the KPA officials, Portside Freight
Terminals management as well as the Dock Workers Union leadership.

 

"The issues raised in the petition filed in Parliament by the DWU are
weighty and need urgent attention," said Mr Pkosing.

 

"As a committee, we will get to the bottom of the matter to establish
whether Portside Limited is getting preferential treatment from the ministry
as alleged."

 

Immediate attention

 

On September 24, National Assembly Clerk Michael Sialai wrote to the
Transport PS over the issues dock workers raised. However, Mr Pkosing
yesterday confirmed that the committee was yet to get any response from the
ministry.

 

"These are issues that require immediate attention. I wonder why the
ministry has taken long to respond to the complaints," he said.

KPA acting managing director Eng Rashid Salim in his report, seen by the
Nation says the agency recently received a proposal from Portside seeking
approval to develop and operate a bulk grain handling terminal at the port
where they will construct a state-of-the-art facility.

 

"Their request further included a request a licence and wayleave to be
issued for the overhead conveyor belt through the G-Section area of the
port, of about 450 metres in length to their shore facility," said Mr Salim.

 

"The claims of preference to PFTL are unfounded. The subsisting lease
contract between the authority and PTFL arose from a competitive process
vide tender No. KPA/116/2005D for the lease of the back of port sheds."

 

The KPA, in its report to the MPs, added that Portside, formerly known as
Hyse Investments Limited, won the bid. As result, they have been using the
shed for storage and warehousing as provided in the lease agreement since
2005.

Lease agreement

 

"The initial lease agreement expired in 2019 and was renewed by the Board in
December 2019 following their application for renewal," Eng Salim said
adding, "The arrangements between the Authority and Portside and other
private operators in the Port, is anchored under Section 12 of the KPA Act
which enumerates the powers of the Authority to undertake its business.
Section 12(2)(n)(ii) of KPA Act gives power to enter into agreements with
any person for the performance or provision by the person (so contracted) of
any services or the facilities which may be performed or provided by the
Authority."

 

The acting managing director said that the KPA Act and Tariff book provide
for licensing mechanisms that has customarily been used by the KPA.

 

"It, therefore, cannot be said that the operations of PTFL in the port was
as a result of preference while there are other private operators in the
port on similar or related engagement," he told the MP's.

 

The port agency further said that preliminary investigations into the fatal
incident at the Joho's facility was a 'mechanical accident', and not
structural issues as raised by DWU.

 

Eng. Salim said in his response that KPA's cross functional committee which
carried out preliminary investigations "noted that the plausible cause of
the accident may have been due to mechanical failure as the plant was being
tested by the contractor who did the installation."-Nation.

 

 

 

Kenya: Covid-19 - How the Virus Has Affected Taxi Business in Meru

As coronavirus pandemic continues to ravage the country, Mr Humphrey Ntoribi
M'Magana's taxi business is almost collapsing.

 

These days, he says he is not in a hurry to wake up at 5am because he knows
there will be no client waiting for transport to Meru town and its environs,
thanks to the virus.

 

"Before the virus struck, I could make at least Sh5,000 per day but not any
more these days," says Mr M'Magana, 45.

 

The taxi driver says he makes less than Sh1,000 per day.

 

"If you get Sh1,500, you are lucky," said Mr M'Magana who is not planning to
abandon his taxi business to start a grocery shop.

And just as he was negotiating rent charges with his landlord, he was
slapped with a six-months' rent of Sh18,000 which he could not afford.

 

However, he used his car logbook to apply for a Sh40,000 loan at Momentum
Credit Micro Finance.

 

"I was about to sell my car but thank God I used my log book to apply for a
loan and this has changed my fortunes," he said.

 

Mr M'Magana is not alone. He is among a growing group of taxi drivers in
Meru town, Nanyuki and Isiolo towns who are using their car log books to
boost their businesses which have been hit hard by Covid-19.

 

"The pandemic has been a blow to taxi drivers. Taxi trips have dropped by 90
per cent. The business is down, the extra cost of sanitising my vehicle has
become a big struggle," Mr Joseph Gitonga told Nation.

 

Like other taxi drivers in Isiolo town, he has used up to 60 per cent of his
car's value to get a loan.

"The flexible loan terms by Momentum Credit, micro finance of up to 18
months has given me opportunity to jumpstart my life and I'm now doing
livestock farming," said Mr Abdi Ahmed, a trader in Isiolo town.

 

Meanwhile Momentum Credit employees were feted for pushing credit sales to
Sh148 million in the month of October.

 

The more than 100 employees received cash rewards during the official
opening of the company's 12th branch in Meru Town on Friday.

 

The new branch will also serve Laikipia and Isiolo counties.

 

The firm's Insurance Premium Finance Manager Odipo Otieno said that the
insurance business in Kenya has been expanding.

 

"People are waking to realisation that it is important to insure their
lives, vehicles, houses, and other moveable properties," said Mr Otieno.

 

He announced the company's intention to venture into the health insurance.

 

He said Meru being a critical commercial centre in the Eastern region, the
new branch would unlock the potential in the three counties.-Nation.

 

 

 

Uganda: An All-Female Taxi Service Born of Covid Downswing

When business partners Gillian Kobusingye and Sharon Rutega lost their
logistics business following the impact of the coronavirus pandemic early
this yeåar, it did not at that moment occur to them that there would be a
window for innovation.

 

The entrepreneurs were initially involved in microfinancing, focusing on
women working in markets, in addition to shipping in merchandise from
countries such as China.

 

They sought an alternative source of livelihood when their businesses went
down as Covid-19 ravaged economies across the world.

 

"We are a team that does not just settle for nothing, so when Covid-19 hit,
we were eager to find something to do. That drive inspired us to try out
something new," Ms Kobusingye said at a meeting at their office in Bugolobi,
a Kampala suburb last Wednesday.

The result is Diva Taxi, a technology- based start-up aimed at improving the
transport sector in the country.

 

Ms Rutega explained that Diva Taxi is a ride hailing service, offering
transportation services and focuses on helping women achieve social economic
empowerment.

 

The venture offers women an opportunity to supplement their income by using
their vehicles to ferry passengers at a fee.

 

The idea triggered by the loss of their business following the outbreak of
Covid-19, also has its roots in the duo's desire for an economically
empowered woman, a diva.

 

"Many people were affected by the pandemic. We also realised there was need
for transportation of goods and people during the lockdown, so we came up
with the idea, to be able to help that woman who had lost her job but had a
car parked in her compound to be able to make some money," Ms Rutega
explained

"We were not making any money. We were at home depressed and thought of
starting something to make some money and sustain our families," Ms
Kobusingye added.

 

Diva Taxi commenced operations in June, when the country was still under
lockdown with the duo as the first two drivers.

 

"Before you launch a product, you have to test it. After realising the idea
was workable, we connected the ladies that we had been working with in our
logistics business and brought them on board," Ms Kobusingye said.

 

In just four months, the start-up has grown to 82 drivers.

 

With about 1,000 downloads of their app, the business now has a deficit to
satisfy the growing numbers of customers. They aspire to match the number by
the end of the year.

"We have contacts where we pick up staff and drop them off, offer corporate
transportations, pick up children from school, and all transport needs," Ms
Rutega added.

 

The transport service provider employs only female drivers.

 

To be part of the team, one needs a vehicle in good mechanical condition, a
national ID, driving licence and a certificate of good conduct.

 

Ms Rutega revealed that on average, a driver makes 30 trips a week.

 

"You turn on your app when you are available to work, you can do it even
with a formal job. You can work extra hours on the weekends, or on your way
home even after your 8am to 5pm job," Ms Rutega said.

 

How it works

 

At Diva Taxi, the driver takes 85 per cent of the proceeds from the trip.

 

Ms Kobusingye says they are still working on creating more awareness for the
product, and are seeking to spread across the country. Technology reach has
also been a challenge in expanding the innovation since it is
software-oriented.

 

"We are still using the very basic technology that we can afford but we if
given the right software systems, we will soar and we are looking to partner
to grow the venture," she said.

 

Safety measures

 

The Diva Taxi app comes with an emergency button, available to both the
driver and the passenger.

 

"This is like a panic button and is linked to police and the office
considering that it is an online service, we are able to locate where the
driver is every time,"

 

The drivers also go through self-defence training.

 

The Diva Taxi founders also aspire to establish an all-female mechanic shop.

 

Ms Kobusingye, a graduate of Hotel Management and Digital Marketing,
emphasises hard work and persistence for women to rise above the bar.

 

Asked about what inspires her, Ms Rutega, an Information Technology graduate
from Makerere University, said: "We are passionate about working with women
and thought if women are empowered socially and economically, the entire
world benefits."

 

About the app

 

Diva Taxi is a technology-based start-up aimed at improving the transport
sector in the country.

 

Ms Sharon Rutega, one of the founders, explains that Diva Taxi is a
ride-hailing service, offering transportation services and focuses on
helping women achieve social and economic empowerment.-Monitor.

 

 

 

Nigeria: Govt to Commence Work On Itakpe-Lokoja Rail Line in 2021 - Amaechi

Minister of Transportation, Rotimi Amaechi has said the Itakpe-Lokoja-Abuja
railway project which will connect the new Warri port, will commence in
2021.

 

Amaechi who stated this said at the 2021 Budget Defence in Abuja said the
President Muhammadu Buhari-led government is committed to connecting
different parts of the country with rail, to ease the burden of
transportation.

 

The Minister added that the reconstruction and rehabilitation of the Port
Harcourt-Maiduguri Eastern narrow gauge, the Deep-sea port in Bonny and
railway industrial park in Port Harcourt are also part of the project for
next year.

 

 

"The reconstruction and rehabilitation of the Port Harcourt-Maiduguri
Eastern narrow gauge railway, construction of new branch lines and trans
shipment centres for future railway development connecting with this
corridor is very important.

 

"This project is also integrated with a deep-sea port in Bonny and railway
industrial park in Port Harcourt, that are being developed through direct
investment by the China Civil Engineering Construction Corporation, CCECC
partnering with Chinese financiers."

 

Continuing, Amaechi noted that the "construction of the central railway from
Itakpe to Abuja, connecting to a new Warri port, construction of a 378km
single track

 

standard gauge rail line traversing Kano-Katsina-Jibiya with a 20km
extension to the commercial boarder town of Maradi in Niger Republic, are
projects proposed for 2021."

 

 

According to him, the problem with the coastal rail lines like other
projects, is paucity of funds, adding that the Ministry of Finance was
negotiating loan to fund the Kano-Maradi, Lagos-Calabar and Port
Harcourt-Maiduguri railway projects.

 

Amaechi further said extra works on the Lagos- Ibadan corridor, amounting to
$656 (funded by the federal government) has commenced.

 

According to him, the extra works include the construction of upgraded
railway stations, signaling and telecommunication system, power supply
scheme and construction of pedestrian and overpass bridges.

 

"These additional and extra works amounting to $656million which is to be
financed 100 per cent by the federal government has been approved by the
Federal Executive Council for implementation.

 

"The project contractor, Messrs CCECC Nigeria Limited on the instruction of
the ministry has commenced work and reached an advanced stage. Therefore, in
order not to forestall the progress of implementation, adequate fund needs
to be provided in the 2021 budget proposal to facilitate the completion of
the project, " he added.

 

Amaechi, further said that for the implementation of Ibadan-Kano railway
project, one of the conditions precedent to signing of the loan agreement is
to release an advance payment of $864million, saying government has so far
made a part payment of $218.7million.- Vanguard.

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Blog:
<https://bullszimbabwe.com/category/blogs/bullish-thoughts/>
www.bullszimbabwe.com/blog

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Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Natfoods

AGM

Royal Harare Golf Club

09/11/2020 | 8:45am

 


Afdis

AGM

virtual

13/11/2020 | 12:20pm

 


Simbisa Brands

AGM

SAZ, Northend Close, Borrowdale, Harare as well as virtually on:
https:/escrowagm.com/eagmZim/Login.aspx

20/11/2020 | 8:15am

 


Axia Corporation

AGM

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

24/11/2020 | 8:14am

 


Zimbabwe

National Unity Day

Zimbabwe

22/12/2020

 


 

Christmas Day

 

25/12/2020

 


 

Boxing Day

 

26/12/2020

 


 

New Year’s Day

 

01/01/2021

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
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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