Major International Business Headlines Brief::: 13 November 2020

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Major International Business Headlines Brief::: 13 November 2020

 


 

 


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

 


 

 


ü  Asian trade mega-pact set to be signed this weekend

ü  Wall Street 'old boys' club' lets in more women

ü  US bars investments in 'Chinese military companies'

ü  Black Friday emissions boom predicted

ü  TikTok lives to see another day in US

ü  Bank heads: Outlook uncertain despite vaccine optimism

ü  Switzerland moves to close bribery loophole

ü  Airbnb glitch cancels trips after deactivating user accounts

ü  Trump bans U.S. investments in firms linked to Chinese military

ü  Asian stocks edge higher as Biden cements presidential win

ü  U.S. labor market gradually healing; inflation still benign

ü  Nigeria: Otunuga - Rising Gold Prices May Support Nigeria's Economy

ü  Ethiopian Airlines Wins Award

ü  Rwanda: Experts Weigh in On New Rwanda Finance Limited Board Members

ü  Nigeria: Forensic Auditors Receive Volumes of Contract Documents From
NDDC

ü  Kenya: Java Coffee House Set to Fire Some of Its Workers

 


 <mailto:info at bulls.co.zw> 

 


Asian trade mega-pact set to be signed this weekend

Asian leaders are due to sign a mammoth trade deal this weekend that has
been nearly a decade in the making.

 

It includes the ten members of the Association of Southeast Asian Nations
(Asean), plus China, Japan, South Korea, Australia and New Zealand.

 

The members make up nearly a third of the world's population and account for
29% of global gross domestic product.

 

The new free trade zone will be bigger than both the US-Mexico-Canada
Agreement and the European Union.

 

India was also part of the negotiations, but pulled out last year, over
concerns that lower tariffs could hurt local producers.

 

The Regional Comprehensive Economic Partnership (RCEP) is expected to be
signed on the side lines of the mostly-online Asean conference this weekend.

 

What does it do?

RCEP is expected to eliminate a range of tariffs on imports within 20 years.

 

It also includes provisions on intellectual property, telecommunications,
financial services, e-commerce and professional services.

 

But it's possible the new "rules of origin" - which officially define where
a product comes from - will have the biggest impact.

 

Already many member states have free trade agreements (FTA) with each other,
but there are limitations.

 

EU imposes tariffs on $4bn of US goods in Boeing row

Brexit: What trade deals has the UK done so far?

"The existing FTAs can be very complicated to use compared to RCEP," said
Deborah Elms from the Asian Trade Centre.

 

Businesses with global supply chains might face tariffs even within an FTA
because their products contain components that are made elsewhere.

 

A product made in Indonesia that contains Australian parts, for example,
might face tariffs elsewhere in the Asean free trade zone.

 

Under RCEP, parts from any member nation would be treated equally, which
might give companies in RCEP countries an incentive to look within the trade
region for suppliers.

 

'Low ambition'

Although the RCEP was an Asean initiative, it is regarded by many as a
China-backed alternative to the Trans-Pacific Partnership (TPP), a proposed
deal that excluded China but included many Asian countries.

 

Twelve member states signed the TPP in 2016 before the the US President
Donald Trump withdrew the US in 2017.

 

The remaining members went on to form the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP).

 

Although it includes fewer countries, the CPTPP cut tariffs further and
included provisions on labour and the environment than the RCEP.

 

Speaking at an online event at the Peterson Institute of International
Affairs, Australia's former Prime Minister Malcolm Turnbull said the new
deal was old-fashioned.

 

"There'll be some hoopla about the signing and the entry into force of RCEP.
I mean RCEP is a really low ambition trade deal. We shouldn't kid
ourselves," said Mr Turnbull, who signed Australia up to the TPP.

 

Co-operation and loathing

RCEP brings together countries that have often had prickly diplomatic
relationships - notably China and Japan.

 

Both Australia and China will also sign onto the deal, despite reports that
China might boycott some Australian imports over a variety of political
differences.

 

How will Joe Biden change US trade relations?

Chinese President Xi opens up to more trade deals and imports

"You can both co-operate with someone and just loathe them, even as a human
being. RCEP has done an impressive job of separating itself from other
things," said Ms Elms.

 

International trade was far lower on the agenda in this year's US election,
and incoming president Joe Biden has said relatively little about whether
his trade policy will change significantly or if he will reconsider entry
into the TPP.--BBC

 

 

 

Wall Street 'old boys' club' lets in more women

Goldman Sachs, one of Wall Street's biggest names, is letting in more female
partners along with minorities.

 

The investment bank says almost half of its new partners will come from
diverse backgrounds.

 

Goldman Sachs has frequently come under fire for its "boys' club" mentality,
promoting mostly white men to senior roles.

 

Becoming partner at the investment bank is seen as entry into one of Wall
Street's most exclusive clubs.

 

Goldman's partners collectively own a small stake in the firm and get a pay
rise to a basic salary of $950,000 (£724,000).

 

On top of this, they also get exclusive access to the bank's private
investment funds and a share of future profits from them.

 

However, the number of employees it has made partner this year has fallen to
its lowest level in decades.

 

A total of 60 staff will join the exclusive club, which the investment bank
says is a result of a "highly selective process to identify each new
generation of Goldman Sachs senior leaders".

 

Goldman Sachs said 16 of the 60 were women, while four were black, three
Hispanic and 10 Asian. A total of 32 were white men.

 

Yoko Makiguchi previously worked in a senior management role at Goldman
Sachs, and is now chief executive of Revolut Securities' Japanese
operations.

 

"Promotion is determined by a group a male partners. Naturally, they trust
and tend to promote their buddies better than the pure-work-relationship
female employees," she said.

 

Goldman Sachs chief executive David Solomon has said he wants to move faster
to increase diversity among the bank's senior ranks.

 

"The question is after the promotion will there be any physical changes in
these female partners' assignments - will they ever be considered a CEO
role? The answer is still a no," added Ms Makiguchi.

 

But Christine Tsai is founding partner and chief executive at 500 Startups,
a venture capital fund, welcomed the move.

 

"At a time when women are being forced out of the workforce during the
pandemic, in large part because of the gender wage gap, moves on Wall Street
to promote women and treat them on par with men will help to diminish those
disparities," she said.

 

Earlier this year, a review in the UK highlighted a lack of women in senior
and executive roles - making up just 15% of finance directors.

 

"We continue to advance diversity and inclusion at our firm," a Goldman
Sachs spokesman said after announcing the new partners.

 

In June, at the height of the Black Lives Matter movement, Goldman Sachs
pledged $10m towards a fund for racial equality.--BBC

 

 

 

 

US bars investments in 'Chinese military companies'

US President Donald Trump has issued an order banning American investments
in Chinese firms the government determines have ties to the Chinese
military.

 

In the order, Mr Trump accused China of "increasingly exploiting" US
investors "to finance the development and modernisation of its military".

 

The ban is to go into effect in January.

 

It could affect some of China's biggest publicly-listed firms, including
China Telecom and tech firm Hikvision.

 

Throughout his administration, Mr Trump has made efforts to disentangle the
US from its close economic ties with China.

 

He has raised border taxes on billions of dollars worth of China goods and
imposed sanctions on some of its tech companies.

 

Relations between the two superpowers have also soured over issues such as
coronavirus, and China's moves in Hong Kong.

 

Why US-China relations have reached a low

Officials said the new order had been under review for months. It applies to
shares owned directly or indirectly in 31 firms identified by the US earlier
this year as backed by the Chinese military, a list that includes tech firms
and large state-owned construction companies among others.

 

US investors have a year to comply with the rules.

 

Mr Trump, who recently lost to challenger Joe Biden in the US presidential
election, is due to leave the presidency shortly after the order goes into
effect.

 

Mr Biden has not outlined his China strategy, but during the campaign he
promised to challenge the Chinese government on similar issues as Mr Trump,
including trade abuses and cyber-theft.

 

Mr Trump's stance on China is one of the rare areas in which he has
sometimes received support from both Democrats and Republicans.

 

Several politicians in Congress have also proposed laws to block US
investment in firms the White House designates as threats.

 

Earlier this year, Mr Trump ordered the pension fund for government
employees to abandon a plan to invest in Chinese companies. The US has also
said it is considering de-listing Chinese firms from US stock exchanges if
they do not comply with US audit rules.

 

The efforts come as US exposure to companies listed on Chinese stock
exchanges has grown.

 

But such investments remain a small fraction of overall US holdings. In a
report earlier this year, researchers for financial regulators at the US
Securities and Exchange Commission estimated that US mutual funds held about
$43.5bn in Chinese stocks and bonds at the end of April.

 

A spokeswoman for the Investment Company Institute, a trade association for
mutual funds and other money managers, said it was reviewing the order and
had no further comment.--BBC

 

 

 

Black Friday emissions boom predicted

The Black Friday shopping event will create a surge in vehicle emissions,
according to a report from price comparison website Money.co.uk.

 

Lockdown brought an online retail bonanza, and this year’s Black Friday is
expected to be the biggest ever.

 

But each delivery can generate carbon dioxide and emissions will spike.

 

It’s made worse because the concentration of demand to a short space of time
overloads the capacity of firms to deliver in the normal way.

 

Many people expect next day deliveries, so companies have to hire in extra
drivers using their own vehicles, which are often much less efficient.

 

Experts say a little patience from consumers would be a big help.

 

The report says same-day delivery is also a problem as it gives firms less
time to consolidate orders on their routes.

 

The website’s survey suggested that 21% of people shopping online expect
delivery to be cheaper on Black Friday, 55% expect the same, and 3% expect
an increase.

 

The remaining 21% of people didn't think about delivery fees when ordering
online.

 

While 85% of UK consumers plan to shop for Black Friday deals, just one in
10 said they considered the impact of their deliveries on the environment.

 

Carbon ranking

The website has ranked delivery firms on their attitude to carbon emissions.

 

It crowns Royal Mail the most carbon-conscious because of its ‘feet on the
street’ network of 90,000 postal workers.

 

Each year, the Royal Mail delivers around 1.8 billion parcels, and it has
trialled e-trikes.

 

Black Friday orders

Amazon is praised for the number of click-and-collect parcels, which prevent
home deliveries while driving footfall to local businesses.

 

UPS is said to be doing best when it comes to the number of electric or
hybrid vehicles.

 

'Black Friday problem'

Professor Greg Marsden from Leeds University transport confirmed
expectations of a Black Friday carbon dioxide surge.

 

But he said actual numbers were hard to calculate because some deliveries
replace shopping trips into town.

 

“The Black Friday problem is that retailers are created a huge peak in
demand which needs to be met immediately,” he said. “There’s the same issue
with deliveries of chocolates and flowers when it comes to Mother’s Day.”

 

Stephen Joseph, visiting professor at the University of Hertfordshire, told
BBC News: “When it comes to measuring traffic, there’s loads of data on
cars.

 

“But we can see with our own eyes that many vehicles on the road are vans –
they need to be researched better and given more prominence in policy.”--BBC

 

 

 

TikTok lives to see another day in US

The US Commerce Department has halted a ban on TikTok that was due to come
into effect on Thursday night.

 

The order would have prevented the app from being downloaded in the US.

 

The Commerce Department delayed the ban "pending further legal
developments," citing a Philadelphia court ruling from September where three
prominent TikTokers had argued the app should be allowed to operate in
America.

 

The decision will be a relief to the estimated 100 million US TikTok users.

 

In September, TikTok's Chinese owner, ByteDance announced a deal with
Walmart and Oracle to shift TikTok's US assets into a new entity called
TikTok Global.

 

Donald Trump tentatively supported the deal. However on Tuesday TikTok said
it had had no feedback from the US government in two months.

 

President Trump has said he wants TikTok to be sold to a US company.

 

Both he, and Secretary of State Mike Pompeo, have repeatedly said that the
data of US users could be passed on to the Chinese government, though no
evidence has been presented showing this.

 

TikTok denies the allegations.

 

The app is already banned in India, after a diplomatic spat with China.

 

TikTok couldn't be reached for comment.--BBC

 

 

 

Bank heads: Outlook uncertain despite vaccine optimism

US and European central bank chiefs have said that the global economic
outlook remains uncertain despite some promising vaccine trials.

 

Fed chair Jerome Powell and ECB President Christine Lagarde said the economy
was still in for a tough time.

 

This is despite the development of a potential vaccine by US drugmaker
Pfizer and German partner BioNTech.

 

Bank of England chief Andrew Bailey said he felt "very uncomfortable" with
the amount of coronavirus uncertainty.

 

Covid-19: Global stock markets rocket on vaccine hopes

In a panel discussion with US Federal Reserve Chair Jerome Powell and Bank
of England Governor Andrew Bailey, Ms Lagarde said: "From a huge river of
uncertainty, we see the other side now."

 

"But I don't want to be exuberant about this vaccination because there is
still uncertainty" about the production and distribution of the vaccine, she
added.

 

Mr Powell echoed her, saying the vaccine results were "good and welcome
news" but it was "too soon to assess with any confidence the implications...
for the near term".

 

Mr Bailey said he felt "very uncomfortable" at the huge amount of economic
uncertainty created by Covid-19.

 

"We are living in a world of huge uncertainty and unpredictability, and I
don't like to say that," he said. "It's a very, very difficult place to be
in."

 

Earlier on Thursday, Mr Bailey told a Financial Times event that he was
encouraged by the latest Covid-19 vaccine developments, which reduced
economic uncertainty.

 

This week stock markets soared due to hopes of a potential breakthrough in
the search for a vaccine against Covid-19.

 

With the eurozone likely to be heading back into recession this quarter, the
ECB has already said it would provide more stimulus in December, probably
through its pandemic emergency bond-buying programme and through more
favourable loans to the bank sector.

 

The US economy has recouped just over half the 22 million jobs lost since
businesses began reopening after the first shutdowns in March, supported
both by extraordinary Fed support and the first tranche of about $3tn in
pandemic relief.

 

But the recovery has been uneven, and the subsequent waves of the virus
threaten to make it more so.--BBC

 

 

 

Switzerland moves to close bribery loophole

Bribes paid by companies to private individuals and money spent to
facilitate crimes will no longer be tax-deductible in Switzerland.

 

The Alpine nation, which has been trying to shed its reputation as a tax
haven, said the new rules would go into effect in 2022.

 

Outside groups have been calling for such reforms for years.

 

Under Swiss law, bribes to public officials were already denied favourable
tax treatment.

 

The government said the latest update, which has been under discussion for
at least five years, "harmonises" tax law with its criminal code, which
banned private bribery in 2015.

 

It will also bring it into compliance with recommendations from the
Organisation for Economic Cooperation and Development (OECD).

 

Tax crackdown

As of 1996, about half of the countries in the OCED allowed companies to
deduct bribes paid to foreign officials from their taxes, including Germany,
France, Australia, New Zealand and Switzerland. They argued that such
practices were routine business expenses in some countries.

 

But views of such practices have shifted, as international organisations
like the OECD push for tougher rules against money laundering and bribery.
The OECD has said favourable tax rules help to normalise such practices.

 

Switzerland changed its tax rules for bribes to public officials in 2001. It
made it a criminal offense for a company to bribe a private individual in
2015.

 

The European Union removed Switzerland from its list of tax havens only last
year.

 

As part of the reforms announced on Wednesday, the government said it would
also bar companies from deducting foreign fines from their taxes - except in
"exceptional cases" if the sanctions "violate Swiss public policy or if a
company credibly demonstrates that it has taken all reasonable steps to
comply with the law".—BBC

 

 

 

Airbnb glitch cancels trips after deactivating user accounts

Airbnb accidentally cancelled bookings made by its users due to an internal
glitch, the company has said.

 

The problem was caused during "routine maintenance" and deactivated some
users' accounts, resulting in their bookings also being cancelled.

 

The company's Twitter help feed was inundated with both regular users and
hosts affected by the issue.

 

Airbnb said the problem was a "system issue" at its end, and not a hack or
data breach.

 

It also said "a very small subset of user accounts" were affected.

 

Some hosts complained online that they had had multiple bookings cancelled
at once - with one reporting more than a dozen - and were not receiving any
help from the booking firm.

 

"We apologise to those users impacted by this incident and have restored
their accounts, in addition to providing rebooking support for impacted
reservations," Airbnb said in a statement. It also promised a thorough
investigation.

 

However, some hosts may miss out if their guests booked alternative
accommodation after being told their stay was cancelled.

 

One cancellation email sent to a BBC employee told them their one-week stay
had been cancelled and they had been refunded an amount of $0.

 

The email also encouraged paying customers to find a different nearby host
to stay with.

 

A screenshot of an AirBnB email tells the user the booking has been
cancelled, with a highlighted link to "check out new homes"

image captionNeither the host or the guest cancelled this booking

"So angry with Airbnb right now!" one Twitter user wrote. "I did not cancel
my guests' reservation, news to me!"

 

Another user, concerned that the error was a sign of someone accessing her
account, wrote: "I've had an account for years, and today it was hacked,
wiped, and my family's Thanksgiving reservation was 'cancelled' with only
half of my $900 being refunded."

 

"Happened to me too on the hosting side and thousands in multiple bookings
were cancelled. Now the dates are blocked per their host cancellation
policy," another host replied.

 

It comes as Airbnb is widely rumoured to be preparing for an Initial Public
Offering (IPO) to sell shares to everyday investors for the first time.

 

The company is reportedly hoping to raise some £3bn (£2.3bn) from the share
sale.-BBC

 

 

 

Trump bans U.S. investments in firms linked to Chinese military

WASHINGTON (Reuters) - The Trump administration on Thursday unveiled an
executive order prohibiting U.S. investments in Chinese firms that
Washington says are owned or controlled by the Chinese military, ramping up
pressure on Beijing after the U.S. election.

 

The order, which was first reported by Reuters, could impact some of China’s
biggest companies, including telecoms firms China Telecom Corp Ltd, China
Mobile Ltd and surveillance equipment maker Hikvision.

 

The move is designed to deter U.S. investment firms, pension funds and
others from buying shares of 31 Chinese companies that were designated by
the Defense Department as backed by the Chinese military earlier this year.

 

Starting Jan. 11, the order will prohibit purchases by U.S. investors of the
securities of those companies. Transactions made in order to divest
ownership in the companies will be permitted until Nov. 11, 2021.

 

“China is increasingly exploiting United States capital to resource and to
enable the development and modernization of its military, intelligence, and
other security apparatuses,” said the order released by the White House.

 

The Chinese embassy in Washington did not immediately respond to a request
for comment.

 

White House trade adviser Peter Navarro estimated that at least half a
trillion dollars in market capitalization was represented by the Chinese
companies and their subsidiaries.

 

“This is a sweeping order designed to choke off American capital to China’s
militarization,” he told reporters on a call.

 

The move is the first major policy initiative by President Donald Trump
since losing the Nov. 3 election to Democratic rival Joe Biden and indicates
that he is seeking to take advantage of the waning months of his
administration to crack down on China, even as he has appeared laser-focused
on challenging the election result.

 

Biden has won enough battleground states to surpass the 270 electoral votes
needed in the state-by-state Electoral College that determines the next
president, but Republican Trump has so far refused to concede, citing
unsubstantiated claims of voting fraud.

 

Thursday’s action is likely to further weigh on already fraught ties between
the world’s top two economies, which are at loggerheads over China’s
handling of the coronavirus pandemic and its move to impose security
legislation on Hong Kong.

 

Biden has not laid out a detailed China strategy but all the indications are
that he will continue a tough approach to Beijing, with whom Trump has
become increasingly confrontational in his last year in office.

 

The order echoes a bill filed by Republican senator Marco Rubio last month
which sought to block access to U.S. capital markets for Chinese companies
that have been blacklisted by Washington, including those added to the
Defense Department list.

 

“Today’s action by the Trump administration is a welcome start to protecting
our markets and investors,” said Rubio, a top congressional China hawk. “We
can never put the interests of the Chinese Communist Party and Wall Street
above American workers and mom and pop investors.”

 

His comments were echoed by Republican Congressman Jim Banks, who described
the order as “one of the wisest and most significant foreign policy
decisions President Trump has made since he entered office.”

 

Rubio’s bill and the order are part of a growing effort by Congress and the
administration to thwart Chinese companies that enjoy the backing of U.S.
investors but do not comply with U.S. rules faced by American rivals. It
also shows a new willingness to antagonize Wall Street in the rivalry with
Beijing.

 

In August, U.S. Securities and Exchange Commission and Treasury officials
urged Trump to delist Chinese companies that trade on U.S. exchanges and
fail to meet its auditing requirements by January 2022.

 

Thursday’s move received a cool reception on Wall Street, where shares were
already pulling back from recent gains. The iShares China Large-Cap ETF
extended falls.

 

“The market is probably worried that President Trump is going to increase
tensions with China and Iran in his last two months as president,” said
Chris Zaccarelli, Chief Investment Officer of the Independent Advisor
Alliance.

 

Still, it was unclear how investors would react. The order bans
transactions, which it defined as “purchases,” so investors would
technically be able to hold onto current investments.

 

While the document does not spell out specific penalties for violations, it
gives the Treasury Department the ability to invoke “all powers” granted by
the International Emergency Economic Powers Act, which authorizes the use of
tough sanctions.

 

Questions also remain about whether Biden, who is set to take office just
nine days after the order goes into effect, would enforce it or simply
revoke it. His campaign declined to comment.

 

 

 

Asian stocks edge higher as Biden cements presidential win

SHANGHAI (Reuters) - Asian shares eked out gains on Friday and U.S. stock
futures turned higher after U.S. president-elect Joe Biden was projected to
win the battleground state of Arizona, cementing his win for the office.

 

The projection by Edison Research dealt another blow to President Donald
Trump’s struggling effort to overturn the results of the Nov. 3 presidential
election.

 

S&P 500 e-mini futures EScv1 inched out of negative territory on the news
but without much conviction, and were last up just 0.03%.

 

European futures remained resolutely dour, with pan-region Euro Stoxx 50
futures STXEc1 down 0.67%, German DAX futures FDXc1 down 0.6% and FTSE
futures FFIc1 off 1.1%.

 

That came after selloffs in the United States and Europe on Thursday as
investors feared the economic impact of accelerating coronavirus infections.

 

The United States has reported fresh daily records for new COVID-19 case
hospitalisations this week, prompting cities and states, including Chicago,
Detroit and California, to re-impose public health restrictions.

 

European officials have also warned against complacency and said measures to
control infections must continue despite hopes that vaccines under
development could help to slow the spread of the novel coronavirus.

 

U.S. Federal Reserve Chair Jerome Powell said on Thursday during a
discussion with other central bankers that progress in developing a
coronavirus vaccine was welcome news but that near-term economic risks
remain as infections accelerate, underscoring the likely need for additional
government stimulus.

 

MSCI's broadest index of Asian shares outside Japan .MIAPJ0000PUS edged up
0.1%, reversing earlier losses. For the week it rose about 0.7%.

 

But apart from a 0.71% gain in Seoul's Kospi .KS11, most major regional
indexes were lower on Friday.

 

Australian shares .AXJO lost 0.2%, the Hang Seng .HSI was 0.48% lower and
Chinese blue-chips .CSI300 slumped 1.57%, dragged lower by the Trump
administration's decision to ban U.S. investments in firms linked to the
Chinese military, and by a series of high-profile bond defaults by
state-owned enterprises.

 

Japan's Nikkei 225 .N225 fell 0.57%.

 

Some investors saw a buying opportunity in the market weakness.

 

“My view is this is the dark just before dawn,” said Michael Frazis,
portfolio manager at Frazis Capital Partners in Sydney.

 

“You’ve got the second wave of coronavirus, new sets of shutdowns, clear
problems around the world, travel dropping off again... But at the same
time, we have the strongest possible evidence that we do have a vaccine...”

 

“We think this is all actually very positive and it’s actually a good time
to be investing in markets,” he said.

 

Frazis said many risks nevertheless remained for short-term traders amid
ongoing uncertainty over issues such as fresh U.S. stimulus.

 

On Thursday, top Democrats in the U.S. Congress urged renewed negotiations
over a multitrillion-dollar coronavirus aid proposal, but the top Republican
immediately rejected their approach as too expensive, continuing a
months-long impasse.

 

Wall Street dropped on Thursday in a broad sell-off.

 

The Dow Jones Industrial Average .DJI fell 1.08%, pulled lower by industrial
and financial companies sensitive to economic growth. The S&P 500 .SPX lost
1.00% and the technology-heavy Nasdaq Composite .IXIC dropped 0.65%.

 

U.S. Treasury yields also sank on Thursday, weighed down by the persistent
rise in coronavirus cases and data showing inflation remained benign in the
world’s largest economy. The U.S. yield curve, viewed in part as a gauge of
risk appetite, also flattened.

 

On Friday, U.S. yields continued to tick lower, with benchmark 10-year
Treasury notes US10YT=RR yielding 0.8701%, compared to a Thursday close of
0.886%.

 

“Bond yields, which had been flirting with the 1.0% level in terms of the
U.S. 10Y Treasury, have ... snapped back sharply in terms of yield,” Rob
Carnell, Asia Pacific head of research at ING said in a note.

 

“That move most likely got a further nudge from the softer-than-expected
U.S. inflation data for October which were released yesterday, and which
tally with a weaker economic reality.”

 

Rising risk aversion lifted the safe-haven yen, with the dollar dropping
0.25% against the Japanese currency to 104.86 JPY=. The euro EUR= was a
touch higher at $1.1809 and the dollar index =USD ticked lower to 92.926.

 

An unexpected rise in U.S. crude stockpiles exacerbated virus-linked
economic fears in commodity markets, pushing U.S. crude CLc1 1.85% lower to
$40.36 per barrel.

 

Global benchmark Brent crude LCOc1 dropped 1.47% to $42.89.

 

Spot gold XAU= gained 0.18% to $1,879.06 per ounce. [GOL/]

 

 

 

U.S. labor market gradually healing; inflation still benign

WASHINGTON (Reuters) - The number of Americans filing new claims for
unemployment benefits fell to a seven-month low last week, but the pace of
decline has slowed and further improvement could be limited by a raging
COVID-19 pandemic and lack of additional fiscal stimulus.

 

The labor market slack is keeping inflation muted, with other data on
Thursday showing consumer prices unchanged in October as moderate gains in
the cost of food and rents were offset by cheaper gasoline and healthcare.
The frail economy is one of the major challenges President-elect Joe Biden
faces when he takes over from President Donald Trump in January.

 

Tepid inflation could allow the Federal Reserve to keep its ultra-easy
monetary policy for a long time to aid the recovery from the COVID-19
recession, with the labor market not expected to move back to full
employment before 2023.

 

Fed Chair Jerome Powell told a European Central Bank forum on Thursday that
spreading coronavirus infections posed a risk to the recovery, which he
described as slowing. He added it was too soon to assess “with any
confidence” the impact of promising news on experimental vaccines.

 

“There are not enough jobs and not enough inflation out there to assuage the
worries of Fed officials trying to go it alone to engineer this economic
recovery as Washington elected officials dither over providing additional
fiscal stimulus,” said Chris Rupkey, chief economist at MUFG in New York.

 

Initial claims for state unemployment benefits fell 48,000 to a seasonally
adjusted 709,000 for the week ended Nov. 7. Economists polled by Reuters had
forecast 735,000 applications for the latest week.

 

Despite claims dropping to their lowest since March, they remained above
their peak of 665,000 during the 2007-2009 Great Recession. Weak demand,
especially in the services sector, is forcing employers to shed workers.

 

Daily new COVID-19 infections are exceeding 100,000 and hospitalizations are
surging as cooler weather draws people indoors, prompting some state and
local governments to impose new restrictions on businesses.

 

Even without restrictions, many consumers are likely to stay away from
places like bars, restaurants and gyms, fearing exposure to the illness.
Restaurants and gyms moved outdoors during summer.

 

Unadjusted claims, viewed by economists as a better measure of layoffs, fell
20,799 to 723,105 last week. Including a government-funded program for the
self-employed, gig workers and others who do not qualify for the regular
state unemployment programs, at least 1 million people filed claims last
week.

 

“Unfortunately, if we see major containment measures kick in again soon
after Thanksgiving those jobless claims numbers will climb once more,” said
James Knightley, chief international economist at ING in New York.

 

Stocks on Wall Street fell on the rising coronavirus infections. The dollar
.DXY slipped against a basket of currencies. U.S. Treasury prices rose.

 

Unemployment claims peaked at a record 6.867 million in March. Much of the
improvement in the labor market came from businesses recalling laid-off and
furloughed workers as companies and the unemployed accessed their share of
more than $3 trillion in government coronavirus relief.

 

But fiscal stimulus has run out, which will make it harder for the economy
to generate enough jobs to absorb the millions of unemployed Americans. The
number of people receiving benefits after an initial week of aid declined
436,000 to 6.786 million in the week ending Oct. 31, partly reflecting many
people exhausting their six months of eligibility.

 

A record 4.143 million people filed for federal government-funded extended
unemployment benefits in the week ending Oct. 24, up 159,776 from the prior
week. Economists said this figure was understated as Florida and Georgia had
yet to report their numbers. These benefits will run out in December.

 

During that period there were 551,791 people on state extended jobless
benefits, which are also capped at 13 weeks.

 

Under all programs, 21.2 million people were collecting unemployment checks
in late October.

 

The government reported last week that nonfarm payrolls rose by 638,000 jobs
in October, the smallest gain since the jobs recovery started in May. That
followed 672,000 jobs added in September. Only 12.1 million of the 22.2
million jobs lost in March and April have been recovered.

 

In another report on Thursday, the Labor Department said its consumer price
index was unchanged last month following a 0.2% increase in September. A
0.2% rebound in food prices was offset by a 0.5% drop in the cost of
gasoline.

 

In the 12 months through October, the CPI climbed 1.2% after increasing 1.4%
in September.

 

Excluding the volatile food and energy components, the CPI was also flat in
October after rising 0.2% in the prior month. Owners’ equivalent rent of
primary residence, which is what a homeowner would pay to rent or receive
from renting a home, rose 0.2% after ticking up 0.1% in September. That
overshadowed a 0.4% decline in the cost of healthcare.

 

“As supply shortages are being resolved, sluggish aggregate demand will keep
a lid on inflation,” said Kathy Bostjancic, chief U.S. financial economist
at Oxford Economics in New York.

 

 

 

Nigeria: Otunuga - Rising Gold Prices May Support Nigeria's Economy

As the federal government grapples with the challenge of finding solutions
to Nigeria's current economic woes, the Senior Research Analyst at FXTM
Global, Mr. Lukman Otunuga, has said the nation's economy may receive some
support from the rise in the price of gold.

 

Otunuga equally stated that the administration of the US President-elect,
Mr. Joe Biden, could bring some hope for Nigeria and the African continent.

 

Presenting Nigeria's macroeconomic outlook for 2020 and beyond during a
virtual meeting with journalists, yesterday, Otunuga who spoke from the
United Kingdom, based his points on some positive developments in the gold
subsector of the nation's economy.

 

According to him, "Nigeria refined its own reserve gold bar and paid N268
million for the 12.5kg bar to start a central bank stock."

 

He said the development in the gold subsector was encouraging
diversification of the national economy.

 

He further said that the newly-regulated gold mining subsector was expected
to create about 250,000 new jobs in the country.

 

The FXTM analyst also stated that Nigeria may record an estimated $1.8
billion economic loss from the 12 days ENDSARS protest in the country.

 

On the victory of Biden and its implication for Nigeria, Otunuga, said the
US president-elect presidency could bring an improved, even stronger
bilateral relations between the US and African continent.

 

According to him, Biden's administration has the prospect of a more
predictable policy towards Nigeria, adding that improving trade relations
between both sides was beneficial for Nigeria.

 

He said as part of such positives for Nigeria, the dollar could weaken on
fiscal package thereby supporting the naira.

 

He noted that Nigeria's macroeconomic outlook for 2021 would still be
influenced by trends in the oil market, saying the rebound of oil price was
hinged on the hope of finding the vaccine for COVID-19.

 

He maintained that improving US-China trade relations may uplift global
sentiment, adding however, that the impact of lower interest rates in
Nigeria could stimulate consumption in 2021.

 

While projecting that Nigeria's economic growth could expand to 1.7 per cent
in 2021, Otunuga stressed that economic diversification and infrastructure
development were key for the transformation of the country.

 

"Nigeria remains on an ongoing quest to diversify from oil reliance.
Eradicating poverty depends on domestic production. However, poor
infrastructure hampering progress," Otunuga said.

 

He also reacted to the concerns arising from the declaration by the Director
General of the Budget Office of the Federation, Ben Akabueze, that 428
agencies of the federal government may not be able to pay November salaries
owing to the announcement of the N30, 000 minimum wage.

 

Proffering solution, the FXTM senior research analyst advised that to avoid
additional hardship to the affected employees, the Central Bank of Nigeria
(CBN) should find a way to assist government by making some funds available
so that the workers could be paid.-This Day.

 

 

 

Ethiopian Airlines Wins Award

The Ethiopian Airlines Group has announced that it has won the 'Overall
Excellence for Outstanding Crisis Leadership 2020 Award,' of the Global
Finance magazine. The award recognises companies that went above and beyond
in responding to the global pandemic crisis and in assisting their
customers, protecting their employees and providing critical support to
society at large.

 

Ethiopian Group CEO, Tewolde GebreMariam, remarked, "We are glad to have won
the 'Overall Excellence for Outstanding Crisis Leadership 2020 Award', which
recognises our distinct capabilities of successful management of multiple
crises taking place simultaneously like a perfect storm.

 

"During the global spread of the COVID-19 pandemic, which resulted in panic,
fear and hopelessness in the industry; we have demonstrated resilience,
agility and speed of decision-making and special competency in fast
redeployment of organizational resources to our cargo division to airlift
life-saving COVID-19 PPE and medical supplies.

 

"We have reconfigured 25 passenger airplanes for cargo only flights and we
also availed the remaining passenger airplanes for repatriation of stranded
people to connect with their loved ones back home.

 

"As a socially responsible airline, we stood in solidarity with the world
during the unprecedented crisis and served communities around the globe to
cope with the COVID-19 pandemic challenges. We are ready to repeat the
remarkable and globally recognized success in leading the fast delivery of
life-saving PPE's with similar delivery speed and professional handling
during the forthcoming global distribution of the COVID-19 vaccine."-This
Day.

 

 

 

Rwanda: Experts Weigh in On New Rwanda Finance Limited Board Members

The appointment of a 7-member board of Rwanda Finance Limited has excited
industry enthusiasts and stakeholders largely due to the profiles and
diversity of the appointees.

 

Rwanda Finance Limited (RFL) is a corporation owned by the government whose
primary responsibility is to develop and promote Kigali International
Financial Centre (KIFC).

 

KIFC is an initiative that seeks to position Rwanda as a preferred financial
jurisdiction for investments into Africa, as well as reform the domestic
industry.

 

Finance and investment experts who spoke to The New Times said that the
appointees among other things will bring years of experience in a number of
key aspects required in building an international finance centre.

For instance, Tidjane Thiam, the immediate former Credit Suisse Chief is
expected to bring on board expertise and global perspective from his years
of experience leading top investment firms.

 

This will serve to facilitate the design of incentives to attract global
firms into the Kigali International Financial Centre.

 

Thiam's global network is expected to be important as the country seeks to
introduce the International Financial Centre to investors across the world.

 

Pierre-Célestin Rwabukumba, the Chief Executive of the Rwanda Stock Exchange
told The New Times that considering that KIFC is expected to serve Rwanda,
the region and the continent, it is ideal to have diversity reflected in the
leadership of Rwanda Finance Limited.

The diversity Rwabukumba said brings in key people with ideal experience and
exposure in matters relating to international finance centres.

 

"While we are using local talent and expertise it is important to have an
outward viewpoint to create and relevance as a country," he said.

 

Other international members are Jacob Mukete, a Cameroonian expert in
governance, economic and financial reforms, and Liban Soleman Abdi, a
Gabonese national with extensive experience in financial management,
entrepreneurship and government advisory.

 

Their presence is expected to create a wide network on the continent and
globally to facilitate the introduction of Kigali International Finance
Centre to the rest of the world.

 

On the board are two experienced lawyers, Louise Kanyonga, a Harvard Law
graduate and renowned city lawyer, Julien Kavaruganda.

 

Kanyonga, among other things has experience in the formulation of key
investment policies over the years which have facilitated the country's
improvement in investment attractiveness indexes including the World Bank
Doing Business Rankings.

Her personal and institutional experience, experts say, will be a boost in
the process of positioning Rwanda as a preferred financial jurisdiction for
investments into Africa.

 

Kavaruganda is a member of several legal bodies such as Brussels Bar
Association, East African Law Society and the Rwanda Bar Association which
he heads. He is also a board member of Kigali International Arbitration
Centre and also heads the African Business Law Harmonization. His experience
is expected to offer local regional and international input in setting up
legal and regulatory framework to improve the attractiveness of KIFC.

 

Paul Frobisher Mugambwa, a senior tax expert and Associate Director at PwC
Rwanda said that given the ambitions of KIFC and the mandate of Rwanda
Finance Limited, the board composition plays a major role in reflecting the
need of the continent and creating international confidence.

 

"The diversity and composition will also play a huge role in creating
confidence in the international community to choose Rwanda as an investment
centre to look at when considering the continent," he said.

 

Pierre-Célestin Rwabukumba, the Chief Executive of the Rwanda Stock Exchange
(left) and Paul Frobisher Mugambwa, a senior tax expert and Associate
Director at PwC Rwanda. / Photos: Net

 

Also on the board is Alice Ntamitondero, a professional accountant and
member of the UK Association of Chartered Certified Accountant (ACCA), and
the Institute of Certified Public Accountants of Rwanda (ICPAR).

 

With the Kigali International Financial Centre featuring stakeholders such
as providers of corporate services such as lawyers and accountants, her
input is expected to ensure that the ecosystem is relevant to backers and
participants of KIFC.

 

Experts who spoke to The New Times said that the inclusion of a head of an
investment advisory firm puts Rwanda Finance at an advantage in targeting
capital and resources into the centre.

 

Umulinga Karangwa, who is also on the board is the Chief Executive and
Founder of Africa Nziza Investment Advisory, an investment advisory firm
targeting institutional investors in Sub-Saharan Africa.

 

Karangwa is a Chartered Financial Analyst and has previously worked as an
analyst in HSBC Holdings, a British multinational investment bank and
financial services holding company and J.P. Morgan Cazenove a U.K.
investment banking firm owned by J.P. Morgan Capital Holdings Ltd.

 

CJ Fonzi, a Dalberg Associate Partner (a strategy and policy advisory firm)
and the Office Director in Kigali said that they were pleased with the board
selection and composition.-New Times.

 

 

 

Nigeria: Forensic Auditors Receive Volumes of Contract Documents From NDDC

The acting Managing Director of NDDC, Kemebradikumor Pondei, on Thursday,
handed over 10 pick-up trucks and five buses to the 16 auditing firms.

 

The much talked about forensic audit of the Niger Delta Development
Commission (NDDC) moved some steps further on Thursday as the commission
handed over to the auditors, files containing documents of contracts it
awarded between 2001 and 2019.

 

The auditors would be looking into volumes of documents, including contract
award papers, payment vouchers, job-completion certification, for possible
detection of official corruption and other forms of abuse.

The auditors would try to find out if the status of the NDDC projects around
the communities in the Niger Delta states correspond with the money taken
out for them.

 

There have been apprehensions over the NDDC forensic audit which was ordered
by <a target="_blank"
href="https://en.wikipedia.org/wiki/Muhammadu_Buhari">President Muhammadu
Buhari</a>, with some people making unsubstantiated claims that the exercise
is a witch-hunt.

 

Also, the interim management of NDDC, faced with corruption probes, claimed
that federal lawmakers were after them because of the forensic audit.

 

"The takeover of the contract files by the Forensic Auditors will mark the
commencement of the next stage of the exercise which started with the
handover of contract documents covering projects captured during the
verification exercise in April 2020," the NDDC spokesperson, Charles Odili,
said in a statement on Wednesday.

"It is important to emphasize that the forensic audit is being carried out
in phases and we are now ready to kick-off the Field Forensic Audit.

 

"To ensure the success of this exercise, we are making available all
required documents needed by the field auditors to enable them discharge
their duties efficiently and effectively," Mr Odili said.

 

He said the files are in 16 lots "as segmented for the forensic exercise".

 

The acting Managing Director of NDDC, Kemebradikumor Pondei, on Thursday,
handed over 10 pick-up trucks and five buses to the 16 auditing firms.

 

"The audit will unravel a lot of things in the commission and it is not a
witch-hunting process but just to know the state of things in NDDC," Mr
Pondei said.

 

Joshua Bashiru, the leader of the audit team, said they would meet with
state directors of NDDC and departmental directors on November 13 to "enable
the auditors to understand how the state works".

Mr Bashiru said the audit would be transparent and would expose the
"dealings" in the commission since inception.

 

There have been allegations of corruption and financial recklessness in the
NDDC by successive managements.

 

The NDDC was set up in 2000 by the administration of President Olusegun
Obasanjo to fast-track development in the oil-rich Niger Delta region of
Nigeria.

 

Twenty years later, the region still remains backwards in terms of
infrastructure and standard of living, despite the huge amount of money made
from oil-exploitation in the area.

 

The Minister of Niger Delta Affairs, Godswill Akpabio, whose ministry
supervises the NDDC, said last year that the <a target="_blank"
href="https://www.premiumtimesng.com/news/headlines/359776-nddc-was-so-corru
pt-it-was-treated-like-atm-akpabio.html">commission was so corrupt</a> that
it was treated like a money-dispensing machine.

 

"I think people were treating the place as an ATM, where you just walk in
there to go and pluck money and go away, I don't think they were looking at
it as an interventionist agency," Mr Akpabio had said.-Premium Times.

 

 

 

Kenya: Java Coffee House Set to Fire Some of Its Workers

Nairobi — Restaurant chain Java House has announced plans to lay off some of
its employees through a voluntary Separation Option Program.

 

In a document exclusively seen by Capital Business, the restaurant revealed
that even as restrictions meant to contain the coronavirus pandemic were
eased, demand has been materially lower than previous years levels.

 

The chain projected the pattern to continue for a period of time.

 

Java revealed that the program is targeting staff in different branches,
starting with staff who have completed at least 4 Years of service within
the group, commissary staff who have completed at least 3 Years of service
within the group and support and operations leadership staff who have
completed at least 1.5 Years of service within the group.

In addition to the above eligibility, preference will be given to those on
unpaid leave/ rotation

 

The company said the ongoing squeeze for efficiency by the coffee shop is
anchored on providimg their staff the opportunity to receive a lump sum
financial payment from the company allowing them to create options for
themselves following the prolonged effects of COVID-19.

 

"During the last few months we have looked at every aspect of cost reduction
in the business, including re-negotiating rents, our procurement of raw
material, our labor schedules, our utility costs etc. and these are now
moving towards a very low level in line with expected sales. But
unfortunately the business is potentially over resourced at the current
level of performance," reads the document.

 

"It is also a way in which we can offer an alternative to those unable to
work or on rotation to allow them pursue other interests,"it added.

 

Staffers who opt for the program after being approved will receive
incentives including 15 days' pay for every complete year worked,
Contractual Notice period waived and payment thereof Additional 1.5 month's
pay, payment for any unutilized leave and Medical cover up to March 2021.

 

The company said in conclusion that those interested in applying for the
program have until November 27th 2020 to send their requests to the
management.-Capital FM.

 

 

 

 

 

 

 


 


 


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:
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www.bullszimbabwe.com/blog

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Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


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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