Major International Business Headlines Brief::: 23 November 2020

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Major International Business Headlines Brief::: 23 November 2020

 


 

 


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ü  Kellogg's and Britvic attack plan to ban junk food ads online

ü  Fur industry faces uncertain future due to Covid

ü  Carnival Cruise boss banks on safety measures

ü  Coronavirus: £3bn for NHS but Sunak warns of 'economic shock' to come

ü  Exclusive: In latest China jab, U.S. drafts list of 89 firms with
military ties

ü  Boeing 737 MAX jets undergo round-the-clock effort to clear inventory

ü  Global dividends forecast to inch back from coronavirus cliff edge

ü  Blackstone seeks $5 billion for second Asia buyout fund: Bloomberg News

ü  U.S. retailer Guitar Center files for bankruptcy

ü  Alibaba CEO says China's internet policies need to evolve to help
industry

ü  Asian shares rise as investors count on vaccine relief

ü  Nigeria: Petrol Price Hike - FG Meets Labour Today As NLC, TUC Fume

ü  Nigeria: Reducing Poverty Through Agriculture

ü  West Africa: Economics Alone Isn't Holding Back West Africa's Eco

ü  Africa-Europe Relations - 2020 Was a Lost Year

ü  The Rise of Online Betting in Africa

ü  Kenya: Broke Kenya Seeks Sh75bn Debt Suspension

ü  Tanzania: Bank of Tanzania Takes Control of China Commercial Bank

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


Kellogg's and Britvic attack plan to ban junk food ads online

Some of the UK's biggest food companies have attacked a plan that could see
all online junk food advertising banned to tackle childhood obesity.

 

In a letter to the prime minister, bosses of firms including Britvic,
Kellogg's and Mars said they supported government efforts to tackle obesity.

 

But they said the plans were "disproportionate" and lacked evidence.

 

The government has said it is determined to help children and families make
"healthier choices".

 

It originally planned to ban online adverts and TV commercials for unhealthy
foods that appeared before 9pm, but strengthened this in November.

 

The prime minister is said to have changed course after being hospitalised
with Covid-19, something he links to being overweight.

 

The proposal, which is still under consultation, could usher in some of the
toughest digital marketing restrictions in the world by the end of 2022.

 

Firms would not be able to promote foods high in fat, salt or sugar in
Facebook ads, paid search results on Google, text promotions and posts on
platforms such as Twitter and Instagram.

 

'Family favourites'

But the letter, which has been signed by 800 food and drink manufacturers
and 3,000 UK brands, says food companies have not been given enough time to
submit detailed objections.

 

"The UK government is quite correctly committed to evidence-based policy
making. However, the evidence base underpinning these proposals is lacking
in both detail and efficacy," it says.

 

"Additionally, there is still no agreed definition of which foods the
government is including in these proposals.

 

"They are so broad they even capture family favourites from chocolate to
peanut butter to sausage rolls."

 

The government estimates children aged under 16 were exposed to 15 billion
junk food adverts online in 2019, versus 700 million two years earlier.

 

But in the letter, firms said advertisers could use sophisticated online
tools to aim their advertisements at adult audiences, not children.

 

'Healthier choices'

It also voiced concern about plans to police how producers described their
products on their own websites and social media channels, saying this would
disproportionately impact smaller businesses - which make up 96% of the
industry.

 

"Is it really the government's intention that a local wedding cake business,
for example, would not be able to share product details on its Instagram
account in order to grow its sales?" the letter said.

 

The food and drink industry is the largest manufacturing sector in the UK,
worth more than £28bn to the economy and employing almost 500,000 people.

 

Unveiling plans for the ban earlier this month, Health Secretary Matt
Hancock said: "I am determined to help parents, children and families in the
UK make healthier choices about what they eat."

 

A spokesman for the Department of Health and Social Care said: "We have
committed to restricting HFSS adverts [for products high in fat, sugar and
salt] on television before 9pm, but we also need to go further to address
how children can be influenced online by adverts promoting unhealthy foods.

 

"We have launched a consultation to gather views from the public and
industry stakeholders to understand the impact and challenges of introducing
a total ban on the advertising of these products online."--BBC

 

 

 

Fur industry faces uncertain future due to Covid

Europe's fur industry is back in the spotlight after Denmark's mass culling
of millions of mink following an outbreak of coronavirus at farms in the
country.

 

Earlier this month, Prime Minister Mette Frederiksen announced that all mink
would be slaughtered. Denmark is the world's biggest mink producer, farming
up to 17 million of the animals, and Covid has swept through a quarter of
its 1,000 mink farms.

 

Officials say this "reservoir" of disease poses a significant health risk
for humans, and worry that mutations detected in mink-related strains of the
virus might compromise a future vaccine.

 

But images of mink mass graves and farmers in tears were followed by outcry
after the government admitted its order had no legal basis. The agriculture
minister has since resigned. On Saturday hundreds of tractors drove into
central Copenhagen to protest about the handling of the crisis.

 

A farmer on a tractor with a placard reading 'The one who gives the order -
Garbage' protests on November 14, 2020 in Aalborg, northwestern Denmark,
during a rally against the Danish governments' order to cull all mink in the
country.

 

 

The proposed ban on mink farming until 2022 now has parliamentary backing
but negotiations over compensation are dragging out.

 

Authorities say all 288 infected herds have been killed and they have put
down approximately 10 million infected animals. It is believed the majority
of remaining healthy mink have also been killed. In a short while, Denmark's
fur industry has almost been wiped out. Around 6,000 jobs are at risk.

 

"It is a de facto permanent closure and liquidation of the fur industry,"
said Danish Mink Breeders Association chairman Tage Pedersen in a statement.
"This affects not only the mink breeders, but entire communities."

 

Mink farmer Per Thyrrestrup doubts business will ever come back: "To have
the same quality of the skins, to have the same colour - it's going to be 15
to 20 years before that's possible."

 

Fur skins produced in Europe 2018

The world's largest fur auction house, Kopenhagen Fur, has also announced a
"controlled shutdown" over two to three years until this season's pelts and
older stockpiles are sold.

 

Thousands of buyers, mostly from China, once flocked to auctions held in the
Danish capital. It has been a giant in the business, trading 25 million
Danish and foreign furs last year.

 

But even before the pandemic struck, there were signs it was struggling.

 

A decade ago trade boomed, fuelled by an appetite for luxury goods as
Chinese incomes grew. In 2013, Kopenhagen Fur sold about $2bn (£1.5bn) of
furs, with global mink production worth $4.3bn.

 

Mink pelts then cost over $90 (£69) each, but the bubble burst and last year
skins fetched only a third of that. Local farmers have struggled to make
money - and it is a pattern seen elsewhere. China is by far the biggest fur
importer, but it is a major producer too.

 

Fur producers in Europe 2018

Else Skjold, head of fashion at the Royal Danish Academy, says this
competition has driven prices down: "A lot of new farmers went into the
market and so there was simply an overflow of fur."

 

There's also significant fur farming across Europe. In 2018 there were 4,350
fur farms in 24 European countries, says industry group Fur Europe. Poland,
the Netherlands, Finland, Lithuania and Greece are the biggest producers
after Denmark - though the US, Canada and Russia also operate farms.

 

Since the cull began prices have shot up. "People were concerned that there
might be a shortage," says Mark Oaten, chief executive of the International
Fur Federation (IFF). Denmark accounts for at least a quarter of the global
mink trade.

 

Ms Skjold thinks foreign competitors will fill the gap: "They will invest
hugely in expanding mink farming in China, I suspect."

 

Although fur farming is controversial, she believes standards on Danish
farms are high and one consequence of Denmark's exit is a risk that animal
welfare could get worse. "We will see farming in less regulated and less
controlled countries," she says.

 

Mink appear particularly susceptible to Covid and it can spread quickly in
the farms. Infections have been detected in Spain, Sweden, Italy, the US,
Greece and the Netherlands, which will now ban fur farming by March 2021.

 

Animal welfare groups say this is further reason to outlaw the practice, in
addition to ethical grounds.

 

"Fur farms are not only the cause of immense and unnecessary animal
suffering, they are also ticking time bombs for deadly diseases," says Dr
Joanna Swabe from the Humane Society International.

 

Over the years, animal welfare campaigns have shifted public opinion.
Numerous fashion brands have stopped using fur and switched to synthetic
alternatives.

 

The UK banned fur farming in 2003. Austria, Germany and Japan have also
stopped production and other countries are phasing it out.

 

Yet as European consumers turned away, Chinese customers took their place.
"Towards the 2000s you could see the Chinese market grow. Fur represents
that you've entered the middle class," says Else Skjold.

 

The IFF's Mark Oaten says Asia now accounts for 35-40% of fur sales, with
South Korea another key market. Trends have also shifted away from the
high-cost "grandma's fur coat" to affordable, everyday garments with small
amounts of fur trim.

 

But the Chinese market has also faltered. Economic slowdown had dampened
consumer spending even before Covid struck. Luxury goods spending "has
really taken a dip in the last three years," says Mr Oaten.

 

"The whole industry has been struggling," says Veronica Wang of OCC strategy
consultants, which specialises in luxury apparel and beauty. "Even in China,
this year a lot of fur companies have closed."

 

She says the problem is two-fold: "There is a decline in terms of demand and
there is the oversupply," added to which Covid has made things worse as
there is now nervousness within China about trading or importing animal
products.

 

Ms Wang adds that the appetite for fur is changing among younger Chinese.
Fake fur used to be seen as low quality, but consumers' perceptions are
changing as more luxury brands make the switch.

 

"We know that versus the previous generations, these younger consumers,
especially Gen Z, have a higher sense of social responsibility - I do see
that trend has started," she says.--BBC

 

 

 

Carnival Cruise boss banks on safety measures

The boss of the world's biggest cruise company has told the BBC new safety
measures can help the $150bn (£113bn) a year industry to get going again.

 

The hugely profitable business has been brought to its knees by coronavirus
after regulators around the world stopped ships from sailing to try and
limit outbreaks.

 

Arnold Donald, the chief executive of Carnival Corporation, said "universal
testing, which doesn't exist in any other industry of scale" will help
mitigate the risk of an outbreak.

 

He added that "additional medical screenings, physical distancing, mask
wearing" could be among further measures.

 

However, there have been outbreaks of coronavirus on some of the few cruises
that have set sail recently, including the Carnival-owned Costa Diadema
which has been sailing in the Mediterranean Sea.

 

Mr Donald concedes that "you cannot guarantee that you're going to be
Covid-free no matter what regimen you put in place".

 

Although, he insists, "it can be managed and managed effectively" and that
collaborating with authorities around the world means that has been done
"reasonably effectively" so far.

 

The company has drafted in a raft of health and scientific advisers to draw
up its protocols.

 

Mr Donald says "our priority, of course, is to make cruising work in a way
where we have every confidence there's no greater risk than if you were
engaging in similar activity shore-side".

 

The difficulties of achieving that were laid out by the US Centre for
Disease Control (CDC), which in lifting its ban on cruise ships, said that
without mitigations "cruise ships would continue to pose a greater risk of
Covid-19 transmission than other settings".

 

Two outbreaks on cruise ships early in the pandemic have been detrimental to
the cruise industry, with passengers dying after outbreaks on both the
Diamond Princess, which was quarantined by Japan, and the Grand Princess,
which eventually docked in California.

 

'Cautiously optimistic'

Traditionally, cruising has a loyal customer base and that has given Mr
Arnold grounds for optimism.

 

He says for the second half of next year "bookings have been robust. People
really want to cruise when it's safe to do so". He adds "we're cautiously
optimistic we'll be sailing in early 2021", albeit a few ships at a time.

 

The financial imperative to get going again is clear.

 

Despite scrapping 18 of its 105 ships, Carnival is losing about $650m a
month. After raising more than $12bn from investors, Mr Arnold says, "even
if we had zero revenue, we could go through in to the summer of next year".

 

Other than that the money has pretty much stopped coming in.

 

The summer is normally the busiest time of the year but from July to August
Carnival brought in just $31m. None of that was from ticket sales, and it
compares to $6.5bn in the same time last year, 68% of which was from
tickets.

 

The lack of paying passengers reflects the huge uncertainty hanging over an
industry that thrives on thousands of passengers at a time, travelling in
relatively close confines, two things that have been severely restricted to
try and control coronavirus.

 

According to Monique Giese, who tracks the shipping industry for the
consultancy KPMG, the cruise industry is very much at the mercy of the
virus.

 

Back to work?

She says "it is very difficult to give any forecast for the next year. The
cruise industry is going to lose the very profitable winter season
specifically in the Caribbean area."

 

Test runs are amongst the strict conditions that have been laid out by the
CDC before cruises can resume in the US.

 

It's the most important market for the industry, accounting for nearly 50%
of the 30m passengers who take a cruise each year.

 

The industry has voluntarily stopped sailings in the US until the end of
year. However Congress is investigating whether or not the Trump White House
interfered to stop the CDC extending the mandatory ban into next year.

 

President-elect Joe Biden has taken a markedly different approach to
tackling coronavirus but Mr Donald says "we don't have any concerns" that a
new administration will lead to a new no-sail order and more financial
problems.

 

Before the pandemic, the Cruise Line Industry Association calculated that
its members supported 1.2m jobs worldwide, and when the US no-sail order was
lifted its President Kelly Craighead said she was "confident that a
resumption of cruising in the US is possible to support the economic
recovery" whilst protecting public health.

 

However, ships are being scrapped by several lines, meaning that jobs will
be lost. For those that remain, Mr Arnold says "it's important to get people
back to work".

 

You can watch Arnold Donald's full interview on Talking Business with Aaron
Heslehurst this weekend on BBC World News at Saturday 2330 GMT, Sunday 1630
GMT, Monday 0730 GMT and 1130 GMT and Tuesday at 1330 GMT.--BBC

 

 

 

Coronavirus: £3bn for NHS but Sunak warns of 'economic shock' to come

Chancellor Rishi Sunak is to announce an extra £3bn for the NHS - but has
warned that people will soon see an "economic shock laid bare" as the
country deals with the Covid pandemic.

 

The one-year funding will be pledged in the Spending Review on Wednesday.

 

But Mr Sunak said Covid's impact on the economy must be paid for - and high
levels of borrowing could not go on indefinitely.

 

Borrowing in October hit £22.3bn, with public sector debt over £2 trillion.

 

The NHS usually gets extra money to tide it through the winter months but on
a much more modest scale, with £700m in 2014/15 the highest payout of the
last 10 years.

 

The Treasury said the £3bn package for the NHS would help tackle backlogs in
the health service, with thousands of treatments and operations delayed
because of the pandemic.

 

The number of people waiting a year for treatment has risen from about 1,500
in February to 140,000 in September.

 

The extra funding only applies to England but Scotland, Wales and Northern
Ireland will receive equivalent funding.

 

NHS chief executive Sir Simon Stevens said the extra cash would take the
weight off the NHS, allowing "one million extra checks, scans and additional
operations" to be carried out.

 

"And because Covid takes a mental as well as physical toll, it's
particularly important that we will be able to continue to expand mental
health services too," he said.

 

However, the chancellor warned of hard times ahead.

 

Speaking to the BBC's Andrew Marr show, he said: "We know that three
quarters of a million people have tragically already lost their jobs, with
forecasts of more to come. Borrowing is at record peacetime levels already.

 

"It is not just numbers on a chart, it is people's lives and livelihoods,
it's their security being impacted. And it is something that we are going to
grapple with for a while to come, sadly."

 

Earlier, he told the Sunday Times people would soon see "the scale of the
economic shock laid bare" , indicating taxes might have to start rising next
year and there could be spending cuts.

 

Bailouts for the NHS during winter are not unusual, but this is,
unsurprisingly, a large one by recent standards.

 

The funding boost represents between 2 to 3% of the frontline budget. Making
sure it has an immediate impact will, however, be tricky.

 

Charities will play a crucial role in helping relieve the growing burden on
mental health services from the pandemic. But the need for social distancing
and infection control has reduced the amount of activity NHS hospitals can
do and the health service is already purchasing a significant amount of
services from the private sector.

 

There is a particular bottleneck in waits for tests and scans. There is also
a finite amount of the most precious resource - staff.

 

The use of overtime and agency staff can help but, like the rest of the
nation, significant numbers are also being asked to isolate because of
exposure to the virus.

 

It means the NHS is ruthlessly having to prioritise - and that means Covid,
cancer, emergency work and children.

 

Non-urgent treatments like knee and hip operations are the ones that are
being hit the most. This money helps, but it certainly does not solve the
problem.

 

The Office for National Statistics said government borrowing last month
reached the highest October figure since monthly records began in 1993 -
underlining the "substantial effect" the pandemic is having on public
finances.

 

Government borrowing has reached £214.9bn - £169.1bn more than a year ago.
The Office for Budget Responsibility has estimated it could reach £372.2bn
by the end of the financial year in March.

 

Paul Johnson, head of the Institute for Fiscal Studies, told the BBC the
government was right to keep spending as it tried to get the crisis under
control.

 

But he said tax rises would be inevitable to stop the country's rising debt
pile becoming "unsustainable".

 

total debt

Mr Sunak is facing criticism following reports he might announce a pay
freeze for millions of public sector workers at Wednesday's Spending Review.

 

Frontline NHS staff would likely be excluded but those affected could
include police, teachers, armed forces and civil servants.

 

Meanwhile, the government has said it plans to remove a longstanding bias
that has affected funding for northern England and other regions outside the
South East and London.

 

Speaking to Sky News' Sophy Ridge Programme, Mr Sunak denied the Spending
Review would herald the return of austerity, saying: "What you will see is
an increase in the government's spending on day-to-day public services,
quite a significant one, coming on the increase we had last year."

 

He declined to comment on his plans for public sector pay, but said fairness
was his priority "in the context of the wider economic climate" .

 

But Anneliese Dodds, Labour's shadow chancellor, told the BBC's Andrew Marr
any freeze on public sector pay would stunt the recovery.

 

"What this measure would do is say to a firefighter, hospital porter,
teaching assistants, that they will have less spending power in the future.

 

"That means they won't be spending in our high streets, they wont be
spending in our small businesses, and that is a very good way of knocking
confidence out of our economy at a time when the UK's economic downturn has
been deeper than that of the rest of the G7."

 

A Spending Review is a chance to take a long-term view of the government's
spending plans.

 

It sets out how much money will be allocated to different government
departments and how taxpayers' money will be spent.

 

This year the government decided to abandon its long-term Comprehensive
Spending Review amid the economic uncertainty of the Covid-19 pandemic and
instead next week's review will cover just one financial year.

 

It is expected to focus on supporting jobs and public services through the
Covid crisis as well as investing in infrastructure to deliver on the
government's pledge to "level up" the country.--BBC

 

 

 

Exclusive: In latest China jab, U.S. drafts list of 89 firms with military
ties

(Reuters) - The Trump administration is close to declaring that 89 Chinese
aerospace and other companies have military ties, restricting them from
buying a range of U.S. goods and technology, according to a draft copy of
the list seen by Reuters.

 

The list, if published, could further escalate trade tensions with Beijing
and hurt U.S. companies that sell civil aviation parts and components to
China, among other industries.

 

A spokesman for the U.S. Department of Commerce, which produced the list,
declined to comment. The Chinese foreign ministry did not immediately
response to a request for comment.

 

Commercial Aircraft Corp of China Ltd (COMAC), which is spearheading Chinese
efforts to compete with Boeing and Airbus, is on the list, as is Aviation
Industry Corporation of China (AVIC) and 10 of its related entities.

 

The list is included in a draft rule that identifies Chinese and Russian
companies the U.S. considers “military end users,” a designation that means
U.S. suppliers must seek licenses to sell a broad swath of commercially
available items to them.

 

According to the rule, applications for such licenses are more likely to be
denied than granted.

 

U.S President Donald Trump has stepped up his actions in recent months
against China. Ten days ago, he unveiled an executive order prohibiting U.S.
investments in Chinese companies that Washington says are owned or
controlled by the Chinese military.

 

The pending list comes after the Commerce Department expanded the definition
of “military end user” in April.

 

The April rule includes not only armed service and national police, but any
person or entity that supports or contributes to the maintenance or
production of military items -- even if their business is primarily
non-military.

 

The export restriction applies to items as disparate as computer software
like word processing, scientific equipment like digital oscilloscopes, and
aircraft parts and components.

 

In terms of aircraft, the items include everything from brackets for flight
control boxes to the engines themselves.

 

News of the list comes at a sensitive time for the U.S. aerospace industry
as Boeing seeks Chinese approval of its 737 MAX after it was cleared by U.S.
regulators last week. In March 2019, China was the first nation to ground
the jet following two fatal crashes and it is already expected to wait
months to lift the ban. A spokesman for Boeing declined to comment.

 

Washington trade lawyer Kevin Wolf, a former Commerce official, said
Commerce had shared the draft rule with a technical advisory committee of
industry representatives, and it should have been kept confidential.

 

Wolf said the rule and list still could be modified and that the clock was
running out for it to go into effect under the Trump administration since it
would need to be cleared and sent to the Federal Register, the official U.S.
publication for rules, by mid-December.

 

In the draft rule seen by Reuters, the Commerce Department said being able
to control the flow of U.S. technology to the listed companies was “vital
for protecting U.S. national security interests”.

 

But a former U.S. official who did not want to be identified, said “merely
creating a list and populating it is a provocative act.” An aerospace
industry source said it could spur China to retaliate.

 

The inclusion of COMAC would come as a surprise to at least one major U.S.
supplier, which had determined the company was not a military end user, the
industry source said.

 

A list also would provide European competitors with an opening to promote
their manufacturers, by pointing out they do not have to clear such hurdles,
even if the U.S. grants the licenses, the industry source said.

 

General Electric Co and Honeywell International, both supply COMAC and have
joint ventures with AVIC.

 

A GE spokesperson said its global joint ventures operate in compliance with
all laws, and that the company has worked to obtain licenses related to
military end users.

 

A Honeywell spokeswoman declined to comment.

 

Besides the 89 Chinese listings, the draft rule also designates 28 Russian
entities, including Irkut, which is also aiming to break into Boeing’s
market with its MC-21 jetliner development.

 

The 117-company list is “not exhaustive,” the draft rule said, and is
considered an “initial tranche.”

 

 

 

Boeing 737 MAX jets undergo round-the-clock effort to clear inventory

MOSES LAKE, Wash. (Reuters) - The future of Boeing Co’s freshly approved 737
MAX is in the hands of nearly 700 workers toiling behind the gray doors of a
three-bay hangar at a desert airport in Washington state.

 

Inside, over an endless 24-hour loop, 737 MAX planes are rolled in for
maintenance, and upgrades of software and systems as mandated by the U.S.
Federal Aviation Administration in this week’s order lifting a flight ban
imposed after two crashes, the airport’s director said.

 

In front, workers in bright yellow vests inspect the roughly 240 jets stored
in giant grids at Grant County International Airport in Moses Lake - more
than half of an inventory worth about $16 billion, according to investment
firm Jefferies.

 

Analysts say clearing the logjam of up to 450 stored jets in total is
crucial before Boeing can resume meaningful production of its traditional
cash cow - a task complicated by the fact that buyers have in some cases
walked away during the grounding.

 

While parked on the tarmac, each jet is fitted with red engine and wheel
covers, a windshield screen to block out the sun, and a small generator
powering cycles of fresh air and electricity through its systems - the
aviation equivalent of life support.

 

“It’s an enormous undertaking,” the airport’s director, Rich Muller, told
Reuters. “But this go-ahead from the FAA has given them a real shot in the
arm. It’s really energized everyone.”

 

The work at Moses Lake is a cornerstone of a global logistical and financial
strategy under way at Boeing to clear a backlog of more than 800 mothballed
737 MAX jets. About 450 are Boeing property, and a further 387 were in
airline service before the FAA’s grounding order in March 2019.

 

Across the globe, Boeing teams are hammering out delivery schedules - and
financial terms - with airlines who last year had to scale back schedules
and fly aging jetliners because they lacked the aircraft to meet strong
demand as the MAX grounding dragged on longer than airline and Boeing
executives expected.

 

But the jet is returning at a time when the coronavirus pandemic has
hammered demand for air travel and new jets. Boeing also faces new European
trade tariffs and palpable mistrust of one of the most scrutinized brands in
aviation.

 

“Airlines and the supply chain do not see major deliveries until 2022,” said
Arndt Schoenemann, managing director of supplier Liebherr-Aerospace
Lindenberg. “Right now, COVID is the biggest problem for the industry.”

 

A Boeing spokesman declined to comment beyond listing preparation steps
before 737 MAXs go to customers, which include installing a flight control
software upgrade to deal with a system tied to both crashes, separating
wiring bundles that posed a potential safety hazard, and multiple tests
including a test flight before a final FAA inspection.

 

 

WHITE TAILS

Airlines say it will take about two weeks to ready each plane for service
with maintenance and software upgrades factored in, though Boeing has
already deployed teams around the world to help companies get ready.

 

In a visual display of the jet demand slump, workers at Moses Lake on
Thursday rolled a 737 MAX “white tail” - a jet without a buyer, or whose
buyer has been changed - out of a long row of aircraft awash in the bright
liveries of airline customers, ranging from customers American Airlines to
Norwegian Air. This week, Norwegian sought bankruptcy protection in Ireland.

 

Reuters counted 12 white tails at Moses Lake on Thursday, though sources say
Boeing is worried about 100 such aircraft in inventory, or more.

 

Jets are also stored at Boeing property in the Seattle area and in San
Antonio, Texas.

 

Boeing is in discussions with several airlines, including Southwest, Delta
and Alaska, hoping to stimulate demand for the jet. Deals are expected to
include significant discounts, industry sources have said. But analysts
caution cutting prices too far could upset other customers.

 

A fire sale could also depress resale values of such single-aisle jets - the
cornerstone of a complex system of financing that has attracted capital to
the industry, powered by relatively strong returns on planes which are seen
as mobile real estate.

 

To kickstart the recovery of the MAX and contain any fallout to the jet’s
valuation while offering aggressive discounts to find new homes, Boeing is
expected to line up a handful of large deals with marquee customers who will
put them in long service.

 

The 737 MAX 8 has a list price of $122 million but the market long ago
abandoned published prices as competition heated up. Most jets are privately
sold well over 50% below the list price and the new MAX discount may be
more, jet traders said.

 

Slowing the recovery, the FAA, which has faced accusations of being too
close to Boeing in the past, has said it plans in-person inspections of each
of the 450 planes, which could take at least a year to complete, prolonging
the jets’ deliveries.

 

Grant County International has been a strategically important asset for
Boeing at least since the 1960s, and every MAX built in the Seattle area is
flown there for touch-and-go landings or other tests.

 

The airport and abutting Boeing property has absorbed nearly 700 employees
and contractors to aid the ungrounding effort, up from only a handful,
Muller said.

 

Meanwhile, Boeing is paying some $51,000 per plane a month to park its MAXs,
he added.

 

 

 

Global dividends forecast to inch back from coronavirus cliff edge

LONDON (Reuters) - Dividend payouts by the world’s biggest firms in 2020
will fall by 17.5%-20%, equivalent to some $263 billion, as a result of the
coronavirus crisis, a report on Monday forecast, but could rebound strongly
next year.

 

Although the prediction by investment firm Janus Henderson represents a
smaller dividend drop than some had feared at the outset of the COVID-19
pandemic, it will be the biggest since at least 2009 in the wake of the
global financial crisis.

 

Dividends are a major source of income for both public and private pension
funds, but companies trying to cope with the coronavirus cut them by $55
billion, or 11.4%, in the third quarter after a $108 billion 22% plunge
between April and June when uncertainty over the course of the pandemic
peaked.

 

“Our best case now sees a fall of -17.5% to $1.20 trillion on an underlying
basis. Our worst case sees underlying dividends declining -20.2% to $1.16
trillion,” Janus Henderson said.

 

However, some firms that axed payments have restarted them, even if at lower
levels, while vaccine breakthroughs are also providing hope of a bounce back
in 2021.

 

“This has been the worst year since the global financial crisis,” Jane
Shoemake, Janus Henderson’s Investment Director for Global Equity Income,
said.

 

“(But) if life starts to return to some form of normality even some of the
hardest hit companies (such as travel, leisure and retail firms) will be
able to start to pay dividends again.”

 

Next year’s rebound could be as high as 12% depending on the path of the
pandemic and whether Europe’s banks are allowed to restart dividends again,
the report estimated, although in a “worst-case scenario” they might
flatline.

 

“We still have the winter to get through. It is not going to be a clear
path.”

 

Broken down by sector, the worst declines in Q3 were from consumer
discretionary companies, down 43% in underlying terms, with carmakers and
leisure companies making the deepest cuts.

 

Media, aerospace and banks were also severely impacted, while
pharmaceuticals, food producers and food retailers all produced higher
dividend payouts.

 

Geographically, Britain’s banks and oil firms meant its payouts fell nearly
42% on an underlying basis, while Australia which has also clamped down bank
dividends saw a 40% drop.

 

U.S. dividends were down 3.9%, with the impact felt in share buybacks
instead. Japanese payouts fell 16% with exporters especially hard hit,
whereas a 3.3% rise in China and near 10% jump in Hong Kong made for a rare
bright spot.

 

Big tech has largely shrugged off the pandemic and Microsoft is set to
become the world’s biggest dividend payer for the first time with a near 10%
rise in its impending Q4 payout.

 

“In the last 10 years you have seen a massive shift... There are tech
companies that are just throwing off so much cash,” Shoemake said.

 

 

 

Blackstone seeks $5 billion for second Asia buyout fund: Bloomberg News

(Reuters) - Blackstone Group Inc is seeking to raise at least $5 billion for
its second private equity fund focused on Asia, Bloomberg News reported on
Sunday, citing people familiar with the matter.

 

With this new vehicle, Blackstone plans to more than double the size of its
first Asia buyout fund, Bloomberg reported (here). The company closed its
first Asian private equity fund at about $2.3 billion in 2018.

 

Blackstone did not immediately respond to a Reuters’ request for comment.

 

The U.S. private equity firm has started marketing the new vehicle to
potential investors, and it could increase the size of its latest vehicle
depending on the level of demand in the coming months, the Bloomberg report
added.

 

 

 

U.S. retailer Guitar Center files for bankruptcy

(Reuters) - Guitar Center Inc, the largest U.S. retailer of music
instruments and equipment, filed for Chapter 11 bankruptcy on Saturday, as
music lovers moved their shopping online during the coronavirus pandemic.

 

The retailer has negotiated to have a total of $375 million in
debtor-in-possession financing from its existing lenders and intends to
raise $335 million in new senior secured notes, the company said
refini.tv/3fpM2UC in a statement.

 

Earlier this month the company reached a restructuring agreement with key
stakeholders that includes debt reduction by nearly $800 million and new
equity investments of up to $165 million to recapitalize the company.

 

The company in a court filing said it has between $1 billion and $10 billion
of both assets and liabilities.

 

Guitar Center, which owns nearly 300 stores across the country, said
business operations will continue without any interruption.

 

Milbank LLP served as legal counsel, BRG served as restructuring advisor,
and Houlihan Lokey was financial advisor to the company.

 

Guitar Center began in 1959 as a store selling home organs in Hollywood.

 

The company filed for Chapter 11 bankruptcy in the United States Bankruptcy
Court of the Eastern District of Virginia.

 

 

 

 

Alibaba CEO says China's internet policies need to evolve to help industry

WUZHEN, China (Reuters) - Chinese internet companies have moved to the
forefront of the industry with the help of government policies, but
regulations need to evolve with the times to help the industry manage
problems and its development, Alibaba Group’s CEO said.

 

Daniel Zhang made the comments at the World Internet Conference on Monday.

 

 

 

Asian shares rise as investors count on vaccine relief

SHANGHAI (Reuters) - Asian shares climbed on Monday, with a broad regional
index touching a record high on hopes for imminent coronavirus vaccines, but
worries over the impact of economic lockdowns and uncertainty over U.S.
stimulus capped gains.

 

A top official of the U.S. government’s vaccine development effort said
Sunday that the first vaccines could be given to U.S. healthcare workers and
others recommended by mid-December.

 

Despite the grim backdrop of accelerating COVID-19 infections in the United
States, the forecast helped to raise hopes that lockdowns that have
paralysed the global economy could be nearing an end.

 

“With the vaccine on its way and the likelihood that economic damage being
done by the virus will lift, we’ll still have in place substantial support
from central banks and governments. And that is an economic sweet spot that
should see a significant economic bounce,” said Michael McCarthy, chief
market strategist at CMC Markets in Sydney.

 

“It’s fascinating that investors are willing to focus on that aspect. It
does require some pretty heavy squinting, including looking through the
rising infection rates that we’re seeing right now. But there is a real
optimism around it.”

 

Total U.S. COVID-19 cases topped 12 million over the weekend and more than
255,000 have died.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.56% on
Monday, pushing past a previous record high touched on Friday.

 

Seoul’s Kospi was 1.82% higher as an optimistic earnings outlook for South
Korean chip giants drove gains.

 

Japanese markets were closed for a holiday, but Nikkei futures added 0.19%
to 25,795.

 

The regional index also got a boost from Australian shares which gained
0.51% as the country eased some COVID-19 restrictions. Most of the country
has seen no new community infections or deaths in several weeks.

 

Chinese blue-chips added 0.69%. Hong Kong’s Hang Seng was an outlier, edging
down 0.2%.

 

While most regional indexes were up on Monday, sentiment was fragile as
monetary and fiscal help for the U.S. economy remained elusive.

 

U.S. Treasury Secretary Steven Mnuchin said on Thursday that key pandemic
lending programs at the Federal Reserve would expire on Dec. 31, putting the
outgoing Trump administration at odds with the central bank and potentially
adding stress to the economy.

 

“Discussion is only beginning and may take some time if the recent partisan
disagreements over the composition and magnitude of fiscal spending are any
indication,” analysts at ANZ said in a note.

 

U.S. e-mini futures for the S&P 500 were 0.26% higher at 3,563 on Monday
after U.S. shares slumped on Friday on a combination of dwindling aid for
the U.S. economy and rising novel coronavirus infection rates.

 

The Dow Jones Industrial Average dropped 0.75%, the S&P 500 fell 0.68% and
the Nasdaq Composite ended down 0.42%.

 

In currency markets, a rise in the safe-haven yen underscored nagging
investor concerns. The dollar softened 0.1% to 103.75 while the euro gained
0.14% on the day to $1.1870.

 

The dollar index, which tracks the greenback against a basket of six major
rivals, nudged down to 92.255.

 

U.S. crude eased less than 0.1% to $42.40 per barrel and global benchmark
Brent crude rose 0.18% to $45.04 per barrel.

 

Spot gold added 0.06% to $1,871.69 per ounce. 

 

 

 

Nigeria: Petrol Price Hike - FG Meets Labour Today As NLC, TUC Fume

The Federal Government and Organised Labour will meet this evening over the
recent hike in pump price of Premium Motor Spirit, PMS, commonly known as
petrol that shocked Labour leaders and Nigerians in the wake of tension
created by the September increment.

 

Affiliates of Nigeria Labour Congress, NLC, and their Trade Union Congress
of Nigeria, TUC, counterparts, are already grumbling over the consequences
of the new pump price of N170 per litre of fuel which NLC and TUC have
rejected.

 

In fact, NLC and TUC see the recent increment as a breach of the agreement
Organised Labour reached with Federal Government that led to the suspension
of the planned nationwide strike and mass protest on the eve of commencement
on September 28.

 

Sunday Vanguard gathered that the agents of the Federal Government have
become uncomfortable with the NLC and TUC reactions to the Friday November 9
petrol price hike in the wake of the mayhem that followed the hijack of the
recent #EndSARS protests by hoodlums.

 

According to Sunday Vanguard sources, the meeting is slated for 7 pm today.

 

One of the Labour leaders, who spoke to Sunday Vanguard, said government is
taking Labour's magnanimity for weakness and has decided to act with
impunity to worsen poverty in the country.

 

"I am sure that government officials may have remembered that we only
suspended the planned strike for two weeks from September 28. The issues
surrounding the last increase in pump price of petrol and electricity tariff
are yet to be concluded. Definitely this last increment is a betrayal of
trust and understanding", he said.

 

Recall that early last week, NLC and TUC, in separate statements, while
rejecting the pump price increment, accused government of deceit among
others.

 

NLC, in a statement by the President of NLC, Ayuba Wabba, warned against
pushing workers and Nigerian masses to the wall, saying "The truth is that
we would not have been in this precarious situation if government had been
alive to its responsibilities.

 

"There is a limit to what the citizens can tolerate if this abysmal
increases in the price of refined petroleum products and other essential
goods and services continue.

 

"While we fix our refineries, there are a number of options open to the
government to stem the tide of high prices of refined petroleum products.

 

"One is for the government to declare a state of emergency in our downstream
petroleum sector. As a follow up to this, the government should enter into
contract refining with refineries closer home to Nigeria.

 

"This will ensure that the cost of supplying of crude oil is negotiated away
from prevailing international market rate so that the landing cost of
refined petroleum products is significantly reduced."

On its part, TUC, in a statement by its President and Secretary-General,
Quadri Olaleye and Musa Lawal, respectively, argued: "From all indications,
the government has again reneged on agreement reached with the organised
labour few weeks ago.

 

"In few days the various committees involving government and the organised
labour will brief labour and civil society and the outcome of that meeting
will determine our next line of action.

 

"We recall that at our meeting government appealed that subsidy removal was
the only way out, else the economy will collapse and there would be massive
job losses. We agreed with them to save the economy and the jobs.

 

"If the government claims to have "deregulated" the downstream sector of the
oil and gas (which of course is subsidy removal), it, therefore, means the
independent oil marketers are importing petrol at their own cost.

 

"Information at our disposal, however, is that no independent marketer is
importing fuel, because they cannot access dollars. The Nigeria National
Petroleum Corporations (NNPC) is still holding on to that monopoly.

 

"To make matters worse, it is the NNPC that instructed the new increase and
not the Petroleum Products Pricing Regulatory Agency (PPPRA). What a regime
of contradictions! NNPC has become a behemoth.

 

"The fault dear Brutus is not in our stars, but in ourselves, that we are
underlings. It appears this fault must be conquered for us to be
free."-Vanguard.

 

 

 

Nigeria: Reducing Poverty Through Agriculture

An initiative by an agric firm, known as Home Garden will enhance food
production and food security and boost employment in Nigeria, writes
Eromosele Abiodun

 

With the unemployment rate in Nigeria getting out of control, the federal
government is focusing attention on agriculture to reverse the trend and
also ensure food security. Agriculture was neglected in the past despite its
ability to contribute to Nigeria's gross domestic products (GDP). As a
result of lack of investment in agriculture and insecurity in most parts of
the north, many families have had to rely on aid from donors to survive.

 

Recently, a report by the World Poverty Clock showed that Nigeria has
overtaken India as the country with the most extreme poor people in the
world. According to the report, 50 per cent of Nigerians are now living in
extreme poverty which means living on less than $1.25 per day.

 

At this rate, experts believe the 2030 target for achieving the Sustainable
Development Goals (SDG) set by the United Nations General Assembly and
adopted by Nigeria will remain unachieved.

 

This, they warn, has an implication for all of us as it is hard to feel safe
in the midst of overwhelming poverty. "Chances are that, if the level of
poverty in Nigeria continues to rise, it is bound to implode one day,"
submits an expert, who do not want his name in print.

 

Speaking recently on the need for conserted effort to achieve the UN goals,
the UN Secretary General, Ban Ki-Moon, said, "We do not have a plan B
because there is no planet B!". Basically we must find a way to solve the
problems plaguing the world. One of such problem is Goal 1 of the SDGs which
is to end poverty in all its forms and another is Goal No. 2 Zero Hunger. "

Finding Solution

 

Meanwhile, experts believe multiple strategies are required to address the
issue of food production and food security.

 

The choice of feasible approaches, they said, hinges on the existing social,
political, and economic conditions and resources available to design and
implement the intervention.

 

Taking the lead in this regard is a company who has devoted considerable
effort to devise strategies to drive food production and food security.

 

Known as SENCE Agric, the organisation has developed a novel idea that will
ensure that every family in Nigeria participates in the agriculture
revolution by owing a garden.

 

"We are particularly passionate about these 2 goals as it resonates deeply
with us and we see it in the people we meet on a regular basis. Our problem
solving attitude was what gave birth to the 'Home Garden' idea. We believe
that one way to positively impact the goals sustainably is through the
development of home gardens. With a home garden, families can grow their own
food providing them with nutritious meals and reducing the amounts spent on
food and where possible, sell the excess to generate additional income. With
time, home gardeners can venture into proper farming, if they wish, using
the skills they have developed over the years, thereby creating employment
for themselves.

"Home gardens are also a time-tested local strategy that is widely adopted
and practiced in various circumstances by local communities with limited
resources and institutional support, "the company said in a statement.

 

It added that the SENCE Agric home garden initiative seeks to: "Make it
'cool' to own a home garden, so that more people will embrace the idea,
encourage people and communities to start a home garden and teach farming
techniques that can enable them maximise space and grow food in what little
space they have.

 

"We provide training and support for persons who already own a home garden,
assist successful home gardeners with access to markets, organise community
outreach programmes, where the opportunities and benefits will be discussed,
provide technical support for people who wish to embrace the concept of a
home garden and ensure sustainability through training on various aspects of
running a home garden, including financial management and Food Safety."

 

Home Garden Journey

 

"To begin our home garden journey, we started by organising a home garden
competition which is about promoting the habit of "Growing What You Eat" .
The competition is meant to showcase the people who through their home
gardens are feeding themselves or the community. We emphasised that, it
isn't about how big or small their garden is but what they have been able to
do with the space they have. The winners get cash and other consolation
prizes

 

"We've had the competition three times, the first in April 2019 and the
fourth edition will run by December 2020. The competition is bi-annual, but
can increase when we get more sponsors to donate cash, inputs, tools,etc.
>From the competitions so far, we have gotten several requests and enquiries
about home garden. After much deliberations and discussions,we came up with
the idea of creating a home garden club where people of different status
irrespective of social class or education can discuss, share ideas and
knowledge. The SENCE Agric home garden kicked off in July 2020," it
explained.

 

They added that the SENCE Agric Garden club aim to; promote eating healthy
on a budget, saving money, the easy way and help people know what is in the
food that they eat.

 

"We also collaborating with other enthusiasts to improve their skills,
learning about plants and growing techniques and sharing resources.
Everyone, who had interest or questions as regards home gardening formed
members of the club. The club through its activities will promote home
gardens provide tips and support to members, promote sustainable gardening
practices.

 

"Share healthy recipes, as members you have access to the following
benefits, access to garden inputs, garden set-up at discounted rates, once a
year get -togethers, competitions, access to markets for excess products,
garden support and advisory services and home garden events," the company
said.

 

They added that following the successful set-up of the home garden club, an
outreach programme was initiated and a pioneer community was chosen which
was the ILAJE FISH SELLER COMMUNITY in Bariga area of Lagos state.

 

They added, "The community was chosen based on proximity, their lack of land
space for growing and the fact that there is high poverty rate there,which
might account to lack of proper or balanced nutrition.

 

"The outreach took place on the 17th of October,2020. The community was
thought on how to grow in plastics bowls and buckets. We made them
understand the relevance of growing their own food and what they stand to
gain by doing so. Gifts were presented to the children. They expressed their
joy and were thankful we chose their community to kick start the project.
They asked us to visit more often,which we promised to."-This Day.

 

 

 

West Africa: Economics Alone Isn't Holding Back West Africa's Eco

The Eco - the proposed single currency for members of the Economic Community
of West African States (ECOWAS) - was scheduled to launch this year. In
September, Ivorian President Alassane Ouattara indicated that this may be
pushed back three to five years because of COVID-19. His comments were made
after ECOWAS leaders announced a postponement at their summit in the same
month.

 

The failed launch of the Eco in July 2020 will be the fifth attempt in about
two decades. This time there's no new date and instead, discussions are
being held on a new roadmap. Regional projects such as the West African Eco
are central to better economic integration - something that will be under
the spotlight when the African Continental Free Trade Area (AfCFTA) kicks
off on 1 January 2021.

 

Official reasons for the delay are mainly economic - member states have been
unable to meet the convergence criteria for launching the single currency.
These include inflation, debt-to-GDP ratio, budget deficits and their
financing, reserves and exchange rate stability. But even if these hurdles
are overcome, political problems will probably still prevent the currency
from taking off.

The first challenge facing the Eco is the inclusion of Nigeria - the
region's largest economy. The country accounts for 65% of the region's gross
domestic product (GDP) and about 50% of its total population. It is also one
of the region's only two net oil exporters. This means it faces terms of
trade shocks requiring monetary policy responses that will be unfavourable
for the other member countries.

 

The failed launch of the Eco in July 2020 will be the fifth time in about
two decades

 

This problem isn't insurmountable but there are valid concerns that
Nigeria's history of fiscal indiscipline and its Central Bank's lack of
independence will persist, making the work of a regional central bank
difficult.

Nigeria's inclusion in the single currency will require some innovation. As
the largest funder of the ECOWAS budget, Nigeria has significant political
power in the region. An intersection of economic and political interests
probably explains regional states' lack of appetite for excluding Nigeria
from the Eco or at least highlighting the problems the country poses to the
project.

 

Other political dimensions also afflict the Eco. There is already a common
currency in West Africa - the Franc CFA (FCFA). Established in 1945 for the
French colonies, the FCFA was maintained in West and Central Africa
following independence. Eight countries in West Africa plus Guinea-Bissau,
the only current member that isn't a former French colony, share the FCFA.

 

There are debates around its economic benefits but the political
implications of the FCFA are even more contentious. Widely considered an
irksome vestige of French colonialism because of the French Treasury's role
in its management, the currency has recently faced increasing criticism from
academics and activists.

West Africa's francophone bloc has been accused of hijacking the common
currency project

 

Against this backdrop, Ouattara and French President Emmanuel Macron
announced in December 2019 that the FCFA would be replaced with the Eco. The
announcement was controversial because it retained the peg to the Euro and a
French Treasury guarantee similar to the FCFA arrangement.

 

Anglophone West African countries released a joint communiqué condemning the
move. Nigeria's President Muhammadu Buhari commented directly on the
decision on Twitter. The francophone bloc has been accused of hijacking the
common currency project. Nigeria finds itself in a familiar position, given
that its West Africa policy has long been driven by the need to counter the
influence of France in the region.

 

The historical alignment of francophone West African political elite with
the French government and the suspicions this relationship creates in the
anglophone bloc is an obstacle to the Eco's launch. The apparent power play
between the region's two largest economies - Nigeria and Côte d'Ivoire -
contributes to the stalemate. Ghana waded in with an initial endorsement of
Ouattara's announcement, but later joined the anglophone bloc's
condemnation.

 

This decades-old impasse on the Eco comes at a cost to the region.
Significant investments have been made to establish the currency, with at
least two agencies dedicated to this task - the West African Monetary
Institute and the West African Monetary Agency. With each postponement of
the currency, the financial cost of sustaining these agencies mounts.

 

To move forward on the Eco issue, West African leaders must table their
reservations about the currency

 

Mixed messages about a common currency have created policy uncertainty,
hampering the ability of central banks to plan. The Bank of Ghana for
example introduced new currency notes in 2019 despite a commitment to join
the Eco. For many countries in the region, there are no clear plans to
transition to a new currency.

 

Routinely announcing and missing currency launch dates doesn't assure
international trade and finance partners or foreign investors. It also
creates uncertainty for integration efforts like the AfCFTA, which relies on
regional bodies like ECOWAS to implement the trade deal.

 

To move forward on the Eco issue, West African leaders must table their
reservations about the currency so that a clear stance on how to proceed can
be articulated. This could include an indefinite suspension of the project
or a radical redesign that delivers an economically feasible and politically
desirable outcome.

 

Another option is to rethink Nigeria's inclusion - for better or for worse.
The current costly Eco stalemate must be broken and it remains to be seen
whether the new roadmap will reflect these realities.- ISS.

 

 

 

Africa-Europe Relations - 2020 Was a Lost Year

Plans for a new EU-Africa partnership, a summit and an updated treaty all
fell by the wayside in 2020. The coronavirus pandemic wasn't the only reason
why.

 

There was a sense of optimism about the European Union's relationship with
the African continent in March 2020 when EU development commissioner Jutta
Urpilainen and EU High Representative Josep Borrell announced their new
Africa Strategy.

 

"The European Union is Africa's first partner by all accounts: trade,
investment, development, cooperation, security. We want this to remain, to
scale it further and make it even more efficient," Borrell told journalists.

 

2020 was expected to be a crucial year for the two continents to develop
their relationship.

 

The new strategy announcement was seen as a curtain raiser with the a
planned AU-EU summit rounding off the year.

In October 2020, the heads of state from 55 African Union and 27 EU nations
and their delegations were supposed to celebrate the new partnership at a
summit in Brussels.

 

In addition, a successor to the Cotonou Agreement, which regulates economic
relations between the EU and more than 70 former colonies in Africa, Asia
and the Pacific region, was to be hammered out.

 

With Germany holding the EU Council Presidency from July to December, the
country was expected to play a decisive role.

 

"Africa is an important aspect of our foreign policy," promised German
Chancellor Angela Merkel during a keynote speech in May.

 

Two continents that need each other

 

Things turned out differently than expected though.

 

The EU-Africa summit has been postponed to 2021 because of the coronavirus
pandemic, while a proposition for a virtual meet-up failed to find support.

The new Africa strategy still hasn't been approved by EU member states.

 

And a replacement for the Cotonou Agreement, which expires in December 2020,
is nowhere in sight.

 

"The EU is very much preoccupied with itself -- partly due to the COVID-19
crisis," says Mathias Mogge from VENRO, an umbrella organization for
development NGOs in Germany. "Partnerships with Africa have since faded into
the background."

 

But it's not just the Europeans who are pulling the hand brake. African
nations are also frustrated with the current relationship with Europe.

 

"Relations between Europe and Africa were never fair. Despite terms like
'international cooperation', it's an unequal exchange where Europe plays the
role of a mentor and Africa plays the role of a school pupil," says Nigerian
researcher Lynda Iroulo from the German-based GIGA Institute of African
Affairs.

Those working for civil society in Africa have a similar view. According to
a recent VENRO poll of 221 employees from various African NGOs, half of them
said cooperation with Europe "does not work well" or "not at all".

 

Conflicts over trade and migration

 

Economic relations are a major point of dispute. With 31% of exports and 29%
of imports, the EU is an important trading partner for Africa.

 

But the relationship is extremely unequal. European states import mainly raw
materials from Africa while exporting valuable manufactured goods to the
continent. African economies barely stand a chance of escaping a vicious
dependence cycle.

 

"This lopsided structure doesn't help eliminate the continent's problems
like high unemployment rates and a large informal sector," says Robert
Kappel, a political scientist focusing on Africa.

 

Migration is another hotly contested topic. The EU routinely pressures
African countries to secure their borders to stem the influx of irregular
migrants crossing into Europe. Those who do so are rewarded with hefty sums
of money from Europe.

 

It's difficult for most Africans to legally migrate to Europe unless they
belong to specific professional groups desperately needed by Europe.

 

"African governments are certainly not satisfied with this," Ghanaian
migration expert Stephen Adaawen told DW last year.

 

Well-educated African returnees are important for developing local
economies. In addition, governments benefit from the remittances sent by
citizens living abroad, Adaawen pointed out.

 

Little enthusiasm

 

Also, the EU's new Africa Strategy has failed to draw much interest. The EU
wants to work closer with Africa in five key areas: green transition,
digital transformation, sustainable growth and jobs, peace and governance,
and migration and mobility.

 

But, says Mathias Mogge von VENRO, the strategy is one-sided.

 

"We would like to develop such strategies with the African Union, and
African and European civil society. That way, it wouldn't look as if the EU
was dictating something that Africans have to react to," he says.

 

Whether 2021 will now become the crucial year for EU-Africa relations
depends on whether the planned AU-EU summit takes place early in the year.

 

Critically, leaders on both continents need to agree on the summit's
objectives.

 

"Relations between Europe and Africa can't continue as is," says political
scientist Kappel. "A completely new start is needed."

 

 

 

The Rise of Online Betting in Africa

Africa ranks among the continents with the fastest growing number of sports
fans. In addition to following their favorite sports, there is a new wave of
sports betting, with a big number now involved with Betway online sports
betting. It goes without saying, soccer is the most popular sport among
Africans, but other disciplines like athletics, rugby, volleyball,
basketball, and boxing are also popular. Initially, the continent was not
known as a hub for casinos, but today, you can place bets on Betway right
from wherever you are.

 

With more sportsbooks venturing into the African market over the last few
years, we evaluate some of the reasons why online sports betting has been on
the rise in the African continent.

 

#1. Mobile betting

 

Bookies have taken advantage of the mobile betting platform, with special
apps for both Android and iOS developed. A larger number of the African
population above the age of 18 years owns, or has access to a mobile phone,
which has made it possible for them to register with one or two betting
companies. Besides, with mobile betting, fans can bet on sports events from
wherever they are.

 

#2. The convenience of mobile money

 

A lot of development in Africa can be attributed to the tremendous growth of
mobile money. M-Pesa from Safaricom was launched in the early 2000s, and
that was the turning point for various industries, long before the betting
industry became what it is today. Today, M-Pesa and other mobile money
platforms have partnered with several bookmakers to provide customers with
quicker mobile payment services in addition to other options such as
MasterCard, Skrill, and Neteller, among others.

 

#3. Relaxed gambling regulations

 

The betting market in Africa is not the same as Europe or America. The
betting laws in most of the European and American countries are so strict,
making it harder for betting companies to pitch tents. Ideally, these
regulations are mainly for protecting customers against frauds, but with
African nations still considered third-world economies, foreign investments
are welcome. Strict measures are yet to be put in place, with only South
Africa boasting the best regulated market.

 

#4. High rates of unemployment

 

The number of unemployed youths and adults in the African continent is
alarming. Countries like Ghana, for example, have highly educated youths who
are still unemployed. With the entry of foreign and local betting companies,
these youths engage in online sports betting for the opportunities to win
money. Unlike in developed countries, you can make wagers with as little as
$1, or even less. That makes the playground more suitable even for the
unemployed Africans out there.

 

#5. Entry of multiple betting companies

 

So many foreign and local betting companies have flooded the African market.
The obvious competition for customers results in marketing and
advertisements, thus creating awareness among the people. Even with so many
Africans passionate about sports, advertisement through different media has
played a massive role. Also, companies like Betway offer plenty of bonuses
for new and existing customers, making betting an appealing venture among
many sports fans.

 

 

 

Kenya: Broke Kenya Seeks Sh75bn Debt Suspension

The government is broke, and in need of a Sh75.5 billion ($690 million) debt
relief.

 

Treasury Cabinet Secretary Ukur Yatani yesterday said the government is now
ready to take up an offer to defer repayment of a portion of its debts,
despite putting the country's credit rating at risk of a downgrade.

 

A credit rating downgrade is likely to weaken the shilling and raise the
cost of borrowing, hitting consumers and businesses hard.

 

The Cabinet will next week make a final decision on whether to take up a
Covid-19 debt relief offer by the group of 20 (G20) most industrialised
nations, in a sharp departure from the policy position that the Treasury had
taken earlier this year.

 

"We have been reluctant in the past because of the attendant unintended
consequences in terms of those holding private debt," Mr Yatani said in an
interview with the Reuters news agency. "But now after getting a bit of
assurance that it is a matter that can be managed, we are now strongly
considering joining the arrangement."

Kenya's public debt touched Sh7.12 trillion in September, a Sh1.157 trillion
rise since September last year.

 

Nearly three quarters (72 percent) of this new debt, or Sh835 billion, has
been borrowed in the Covid-19 period.

 

Debt default

 

Acceptance of the repayment relief plan could be interpreted as a technical
sovereign debt default by holders of Kenya's Eurobonds, which Mr Yatani had
in May this year cited as the reason for snubbing the G20 offer.

 

Clause 10 of the Eurobond prospectus states that holders of 25 per cent of
the debt papers can call up the entire loans and interest in the event of a
default.

 

Some of the occurrences considered as default include non-payment of any
external debt worth more than $25 million (Sh2.6 billion) or a moratorium on
any external debt.

Failure to pay principal for 15 days or interest for 30 days and failure to
comply with terms in the contracts for 45 days is also considered a
technical default.

 

Mr Yatani said Nairobi has received "some clarity" on what impact the debt
relief programme might have on the country's credit rating, and is keen to
ease debt repayment pressures at a time tax revenue collections are heavily
weighed down by Covid-19 economic disruptions.

 

Debt relief

 

The Treasury CS said that agreeing to the debt relief plan will also help
Kenya secure future funding from the International Monetary Fund and the
World Bank; which the government has been eyeing to plug its huge budget
deficit.

"They are trying to introduce this as one of the key pre-requisites to
accessing resources from the IMF and World Bank," Mr Yatani told Reuters.

 

The change of heart now turns focus on how the country will navigate through
some of the key concerns it had raised earlier when snubbing the offer.

 

Kenya had only six months ago said the terms of the deal were too
restrictive and it also fretted the impact that debt relief could have on
the country's credit rating.

 

There were concerns that the terms of G20's Debt Service Suspension
Initiative (DSSI) limited beneficiary countries' access to international
capital markets during the standstill, which could hinder Kenya's ability to
finance its budget deficit later in the year.

 

The Treasury had instead opted to engage creditors including Germany,
Sweden, Japan, China and France individually to secure debt service
moratoriums of about one year.

 

The debt relief has come with consequences for countries which opted for it,
with ratings agency Moody's putting Ethiopia, Pakistan, Cameroon, Senegal
and the Ivory Coast on review for downgrades, saying a G20-backed debt
suspension scheme poses risks to private creditors.

 

Moody's already put Kenya on B2 a negative outlook citing huge external
debt, lower revenues and currency risks.

 

CS Yatani had said the Eurobond prospectus provides that non-payment of any
other dollar debt, including moratoriums, are considered as an event of
default that results to investors immediately calling up their funds.

 

The sharp increase in the number of Covid-19 infections and deaths in recent
days has raised concerns on when the country would turn the corner on a
health crisis that has morphed into a deep financial crunch.

 

Fatalities increased

 

Kenya had 72,686 confirmed cases of the Covid-19 on Wednesday from 44,881 on
October 18, reflecting a 62 percent jump in 30 days. Fatalities have
increased to 1,313 from 832 a month ago, representing a 57.8 percent rise.

 

Local health officials have been warning of the possibility of ushering in
stringent control measures such as lockdowns akin to what is happening in
Europe.

 

Kenya's debt repayment costs are eating into a significant chunk of tax
revenues, which are under pressure due to falling corporate profits, layoffs
and job cuts.

 

The G20 in April agreed to suspend debt repayment obligations by least
developed countries through the end of the year under pressure from global
organisations. Kenya is facing a huge budget deficit, with the virus having
muted tax revenue collections growth due to a slowed pace of economic
activities.

 

Kenya's budget deficit swelled to 8.2 percent of GDP in the financial year
ended June, from an initial forecast of below seven percent due to reduced
tax collection and foregone revenue on tax cuts extended to individuals and
businesses from April.-Nation.

 

 

 

Tanzania: Bank of Tanzania Takes Control of China Commercial Bank

THE Bank of Tanzania (BoT) has taken over and placed China Commercial Bank
under statutory administration effective on Thursday.

 

The central bank's decision came almost six years after the bank, which
analysts categorised as a small bank, was incorporated in the country. The
lender, which wanted to capitalise on Sino-Tanzania trade, has failed to
maintain a required capital.

 

BoT Governor, Prof Florens Luoga, told reporters that the decision to take
over was with effect from Thursday morning, following the bank's failure to
meet regulatory requirements on capital adequacy.

 

"Pursuant to powers conferred upon the Bank of Tanzania under Section
56(1)(g)(i) &(iii) of the Banking and Financial Institutions Act, 2006, the
Bank of Tanzania has effective from today November 19, 2020 taken over and
placed under statutory administration China Commercial Bank Limited," said
Prof Luoga.

 

He said BoT had appointed a statutory manager a very competitive woman in
such affairs, who he said would be announced later to manage the affairs of
China Commercial Bank.

 

Moreover, the central banks had also suspended its board of directors and
management.

 

The governor said China Commercial Bank would not be open for normal
business for a period not exceeding 90 days during which BoT would determine
an appropriate resolution option.

 

He assured members of the public that it would continue protecting the
interests of depositors and maintaining the stability of the banking sector,
as he calmed customers to be patient during the 90-day when things were
being sorted out.

Prof Luoga said permitting China Commercial Bank to continue with banking
operations while under the state of undercapitalisation was detrimental to
the interests of depositors and posed a systemic risk to the stability of
the financial system.

 

The governor said during the period in which the bank would be under
statutory administration, the bank would be closed and customer should be
patient as BoT was studying the best practice, go through the assets and
liabilities and capital to make an informed decision.

 

In January 2018, BoT closed five banks due to low capital.

 

The banks closed were Tanzania Women Bank, Efatha Bank, Covenant Bank for
Women, Njombe Community Bank, Kagera Farmers' Cooperative Bank and Meru
Community Bank.

 

Twiga Bancorp and the Tanzania Women Bank were forced to merge with the
Tanzania Postal Bank in May and August 2018 respectively. Bank M was put
under BoT statutory management and later sold to Azania Bank early last
year.-Daily News.

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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

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Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


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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