Major International Business Headlines Brief::: 30 November 2020

[Bulls n Bears]

 <https://bullszimbabwe.com/> 

 


 

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments
<https://bullszimbabwe.com/category/blogs/bullish-thoughts/> Bullish
Thoughts        <http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

 


 

 


Major International Business Headlines Brief::: 30 November 2020

 


 

 


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

 


 

 


ü  Huawei ban from UK 5G network brought forward

ü  Coronavirus: Qantas adds to job cuts by outsourcing 2,000 roles

ü  Arcadia: Topshop owner faces collapse within hours

ü  BT signs 5G deal with Ericsson to help ditch Huawei

ü  Shares rest after "awesome" month, China factories speed up

ü  U.S. shale firms amp up natural gas output as futures signal more gains

ü  China's factory activity expands at fastest pace in over three years

ü  China grants Tesla green light to start selling Shanghai-made Model Y SUV

ü  Tokyo Stock Exchange CEO to resign over October system failure

ü  Universal Studios Japan to open Super Nintendo World area on Feb. 4

ü  Italy's antitrust fines Apple 10 million euros for misleading commercial
practices

ü  Nigeria: Power Supply Partially Restored After National Grid's Collapse

ü  East Africa: Regional Stock Markets Automate Trading

ü  Nigeria: Govt, CBN Point to Results in Economy Recovery Plan

ü  Nigeria: Govt Inaugurates 100kwp Solar Hybrid in Ebonyi Community

ü  Kenya to Position Tea Tours as Part of Tourism Offerings

ü  Nigeria: 25 Million Nigerians to Own Solar Systems At N4,000 Monthly -
Presidency

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


Huawei ban from UK 5G network brought forward

Telecoms providers must stop installing Huawei equipment in the UK's 5G
mobile network from September, the government has said.

 

The announcement comes ahead of a new law being unveiled on Tuesday, which
bans the Chinese firm from the network.

 

Digital Secretary Oliver Dowden said he was pushing for the "complete
removal of high-risk vendors" from 5G networks.

 

The new deadline falls earlier than expected, although maintaining old
equipment will still be allowed.

 

Huawei told the BBC it would not be commenting on the announcement.

 

Attempts to rid Huawei from the network have been ongoing for more than a
year.

 

But the new Telecommunications Security Bill is the first step in enshrining
such bans in law, and offers details of exactly how it will work - if it is
passed by Parliament.

 

MPs will debate the bill at second reading in the Commons on Tuesday.

 

It will give government national security powers, allowing them to give
instructions to big telecoms companies, such as BT, about how they use
so-called "high-risk" vendors like Huawei, if at all.

 

It also threatens telecoms firms with hefty fines if they fail to comply
with the new, higher security standards. They could total 10% of turnover or
more than £100,000 per day.

 

Mr Dowden said that the "new and unprecedented powers" would allow
government to "identify and ban telecoms equipment which poses a threat to
our national security".

 

"We are also publishing a new strategy to make sure we are never again
dependent on a handful of telecoms vendors for the smooth and secure running
of our networks," he said.

 

The ban on installations will be accompanied by measures to encourage more
suppliers to enter the market and replace Huawei, and the development of new
technologies that open up the market.

 

There were fears firms might stockpile new kit and install it later, despite
a ban on buying it from the end of 2020.

 

Under the new strategy, the government will spend an initial £250m which
will involve setting up a National Telecoms Lab research facility as well as
investing in open radio technology.

 

"Our plans will spark a wave of innovation in the design of our future
mobile networks," Mr Dowden added.

 

Political wrangling

It follows months of political wrangling, both in the UK and
internationally, over Huawei's threat to security and its alleged links to
the Chinese state.

 

In July, the government ordered the complete removal of the company's kit
from the entire 5G network by 2027, amid pressure from the US.

 

The UK had initially decided that Huawei equipment should be removed from
the sensitive part of the "core" network, and only make up a maximum of 35%
of the non-core systems. The deadline was set to be 2023.

 

Huawei, however, has dismissed concerns from both the US and its allies over
its operations.

 

Its vice-president Victor Zhang has previously said that the decision to
remove the firm from the UK's 5G network was "politically motivated and not
based on a fair evaluation of the risks".--BBC

 

 

 

Coronavirus: Qantas adds to job cuts by outsourcing 2,000 roles

Qantas will outsource more than 2,000 ground staff roles in an effort to
limit its financial losses.

 

The job cuts are on top of 6,000 roles already announced by Australia’s flag
carrier earlier this year.

 

Qantas announced a $2bn (£1bn) loss in August due to Covid-19 and associated
border restrictions.

 

“Unfortunately, Covid has turned aviation upside down," said Andrew David,
the airline’s domestic and international chief executive.

 

"Airlines around the world are having to make dramatic decisions in order to
survive and the damage will take years to repair,” he added.

 

Qantas hopes to save about $74m annually, based on pre-Covid levels of
flying, by switching to third-party providers instead of handling its own
ground services.

 

It also expects to save $59m over five years by avoiding new spending on
ground handling equipment such as aircraft tugs and baggage loaders.

 

Affected employees will be entitled to a redundancy package and given
support to transition to new jobs, the airline said.

 

media captionCEO Secrets: 'Cabin crew have amazing skills for business'

Turbulence ahead

There has been some good news for the airline’s recovery, with domestic
routes starting to recover as state governments lift interstate travel
restrictions.

 

But Qantas is still predicting bleak times ahead, with more losses next year
due to a drop in revenue of $7.4bn.

 

It does not expect to fly internationally until late in 2021 - with the
exception of a potential travel bubble with New Zealand.

 

The airline has also taken on an additional $1.1bn debt in order to keep
operating.

 

It’s not alone. The International Air Transport Association (IATA) predicts
airlines globally are on course to lose $157bn this year and next.

 

Passenger numbers are expected to drop to 1.8bn this year from 4.5bn in
2019.

 

IATA says those numbers will recover only partially to 2.8bn next year.--BBC

 

 

Arcadia: Topshop owner faces collapse within hours

Sir Philip Green's retail empire Arcadia, which includes Topshop, Burton and
Dorothy Perkins, could face collapse within hours.

 

The company is likely to enter administration on Monday, putting 13,000 jobs
at risk.

 

Senior sources at the company told the BBC on Sunday they do not expect a
last-minute rescue deal.

 

The group had been seeking extra cash to help it plug the gap from lost
sales during the pandemic.

 

Billionaire Mike Ashley's Frasers Group wrote to Arcadia on Sunday saying it
would offer an emergency loan of up to £50m to help with the group's
short-term cash-flow problems.

 

"Our offer would allow you to retain employment for many thousands of your
staff, reopen hundreds of stores when the current lockdown ends, and protect
the financial positions of thousands of members in your pension schemes," a
letter addressed to Arcadia Group executives, and seen by the BBC, said.

 

The letter also said that the Frasers Group would consider giving out the
emergency cash on an unsecured basis - meaning Arcadia would not need to put
up collateral, such as property, to guarantee it would be paid back.

 

However, the offer would be immediately withdrawn if the group, or any of
its smaller brands, enters an insolvency process.

 

"We would urge you to carefully consider this offer," the letter said.

 

Coronavirus crisis

Earlier on Sunday, a senior source at Arcadia Group told the BBC's business
editor Simon Jack: "If this was about £50m we could find that in five
minutes."

 

The source added: "This is obviously a sad day, we tried to save it a year
ago when £200m was put into the business and the pension fund, but it's
impossible to operate now.

 

"You don't know when you'll be open, you don't know what stock to buy."

 

Questions over the future of Sir Philip's retail empire were raised on
Friday, after it emerged talks he had been holding with potential lenders
for a £30m loan had failed.

 

It was seeking extra cash as coronavirus had had "a material impact on
trading" across its businesses, it said.

 

Its brands once dominated High Street fashion, but its chains have been hit
hard by store closures.

 

Arcadia would be the biggest retail collapse of the pandemic. But even
before coronavirus, Arcadia's best-known names were struggling against
newer, online-only fashion retailers like Asos, Boohoo and Pretty Little
Thing.

 

Retail tycoon Sir Philip bought Arcadia Group, which also includes brands
such as Evans and Outfit, in 2002. His wife, Lady Cristina Green, is the
majority owner of its parent company Taveta Investments.

 

The couple are worth £930m, according to the Sunday Times Rich List.

 

Much of their wealth is derived from a £1.2bn dividend payment Sir Philip
took from Arcadia and paid to his wife in 2005. Since Lady Green is a
resident in Monaco, it was paid to her tax-free.

 

In a colourful career, Sir Philip has been both lauded as the "King of the
High Street" and branded the "unacceptable face of capitalism".

 

Read more about the businessman's journey here

 

Adding to the uncertainty facing the thousands of Arcadia staff is an
estimated £350m hole in the company's pension fund.

 

The chair of the Work and Pensions Committee Stephen Timms called on the
Green family to plug the gap on Sunday.

 

"Whatever happens to the group, the Green family must make good the deficit
in the Arcadia pension fund," the Labour MP said.

 

Mr Timms said he would raise the matter with the Pensions Regulator on
Monday.

 

Pensions consultant John Ralfe told the BBC that if Sir Philip did use his
personal wealth to plug the hole in the Arcadia pension pot, that would
ensure workers enrolled in the scheme receive their full pension.

 

But Mr Ralfe said even if the retail magnate did not do that - or if he
writes a cheque that is substantially less than £350m - Arcadia workers
should still receive the majority of their pension entitlement through the
Pension Protection Fund.

 

Sir Philip previously faced controversy for selling off BHS, the former
department store chain, for £1 to high-profile businessman Dominic Chappell.
The following year, BHS went bust with the loss of 11,000 jobs and a pension
deficit of £571m.

 

He reached a deal with the Pensions Regulator to inject £363m into that
scheme.

 

Mr Ralfe has said though that Sir Philip seemed to have "learnt his lesson"
from the scandal.

 

In a deal with the Pensions Regulator in 2019, Lady Green agreed to add
£100m into its two pension schemes over three years. The wider group also
said it would inject £75m, although it paused payments in March for six
months due to difficulties stemming from the pandemic.

 

Retail woes

The collapse of Arcadia could also have a knock-on effect on Debenhams. It
could scupper a potential sale of the department store chain to JD Sports.

 

Arcadia is the biggest concession in Debenhams, accounting for about £75m of
sales.

 

JD Sports had been closing in on a rescue deal to buy the chain, which is
currently in administration for the second time in a year. It has already
cut about 6,500 jobs since May.

 

Debenhams now has about 12,000 employees across 124 stores.

 

According to a source close to the JD Sports, the appointment of
administrators to Arcadia would give the company "more to think about".

 

A final decision is expected within days.

 

Arcadia Group and Debenhams are far from the only recent casualties in the
retail sector.

 

On Friday, menswear retailer Moss Bros launched a restructuring of its
business after it said trading had been "severely impacted" by Covid-19. It
hired auditors to prepare for the company voluntary arrangement earlier in
2020.

 

Fashion chains Peacocks and Jaeger were also placed into administration
after owner Edinburgh Woollen Mill Group failed to find a buyer.--BBC

 

 

 

BT signs 5G deal with Ericsson to help ditch Huawei

BT has signed a deal to use Ericsson's 5G radio antennas, base stations and
other equipment to upgrade its EE mobile network.

 

BT said in time it expected 50% of all its 5G traffic to be transmitted via
the Swedish company's kit.

 

The move will let it ditch Huawei without becoming totally dependent on its
other radio access network (Ran) equipment provider, Nokia.

 

It follows a government ban of the Chinese company's products.

 

Ministers announced in July that all the UK's mobile providers must stop
buying new Huawei 5G telecoms infrastructure after 31 December, and must
also remove any of its 5G equipment purchased before that date by 2027.

 

This was a result of sanctions imposed by Washington, which claims Huawei
poses a national security threat - something the company denies.

 

BT is already in the process of using Ericsson products to replace Huawei's
equipment in its "core" - the most sensitive parts of its network that route
data and voice calls across computer servers to get them to the right
destination.

 

Huawei released a report earlier on Wednesday, claiming its UK ban could
cost thousands of jobs and billions of pounds of lost economic benefits as a
result of the 5G rollout taking longer to complete.

 

The latest announcement had been widely expected, as BT and other mobile
network providers typically use two Ran equipment vendors. This allows them
to maintain a service if a problem develops in one of the provider's
systems, while still enjoying efficiency savings from not having to maintain
and install a wider range of products.

 

Other companies, including NEC and Samsung, are also active in the sector.
But it would have been more complicated to have tried to integrate their
solutions.

 

Some industry leaders have privately expressed concern that Huawei's exit
from the market could reduce competition, resulting in the 5G upgrade
becoming more expensive.

 

"It raises concerning questions about vendor diversity as operators become
reliant on a seemingly ever-diminishing number of leading suppliers,"
commented Kester Mann from the consultancy CCS Insight.

 

"Vendor choice is important for a healthy ecosystem - it can spur innovation
and help bring down costs."

 

In the longer term, another solution known as OpenRan is being explored.

 

This refers to a plan to eventually standardise the hardware used in radio
access networks so that one supplier can be switched for another via
software alone. This would avoid the need to rip out one firm's customised
equipment and replace it with another's.--BBC

 

 

 

Shares rest after "awesome" month, China factories speed up

SYDNEY (Reuters) - World shares paused to assess a record-busting month on
Monday as the prospect of a vaccine-driven economic recovery next year and
yet more free money from central banks eclipsed immediate concerns about the
coronavirus pandemic.

 

Helping sentiment was a survey showing factory activity in China handily
beat forecasts in November, and the country’s central bank surprised with a
helping of cheap loans. That left blue chips up 1.3% on the day and 7.4% for
the month.

 

The rush to risk has also benefited oil and industrial commodities while
undermining the safe-haven dollar and gold.

 

“November looks set to be an awesome month for equity investors with Europe
leading the charge at a country/regional level,” said NAB analyst Rodrigo
Catril.

 

Many European bourses are boasting their best month ever with France up 21%
and Italy almost 26%. The MSCI measure of world stocks is up 13% for
November so far, while the S&P 500 has climbed 11% to all-time peaks.

 

Early Monday, MSCI’s broadest index of Asia-Pacific shares outside Japan
slipped 0.4%, to be up almost 11% for the month in its best performance
since late 2011.

 

Japan’s Nikkei 225 eased 0.4%, but was still 15.4% higher on the month for
the largest rise since 1994.

 

E-Mini futures for the S&P 500 dipped 0.4%, and EUROSTOXX 50 futures 0.6%.

 

“Markets are overbought and at risk of a short term pause,” said Shane
Oliver, head of investment strategy at AMP Capital.

 

“However, we are now in a seasonally strong time of year and investors are
yet to fully discount the potential for a very strong recovery next year in
growth and profits as stimulus combines with vaccines.”

 

Cyclical recovery shares including resources, industrials and financials
were likely to be relative outperformers, he added.

 

The surge in stocks has put some competitive pressure on safe-haven bonds
but much of that has been cushioned by expectations of more asset buying by
central banks.

 

Sweden’s Riksbank surprised last week by expanding its bond purchase program
and the European Central Bank is likely to follow in December.

 

DOLLAR IN DECLINE

Federal Reserve Chair Jerome Powell testifies to Congress on Tuesday amid
speculation of further policy action at its next meeting in mid-December.

 

As a result U.S. 10-year yields are ending the month almost exactly where
they started at 0.84%, a solid performance given the exuberance in equities.

 

The U.S. dollar has not been as lucky.

 

“The idea that a potential Treasury Secretary (Janet) Yellen and Fed chair
Powell could work more closely to shape and coordinate super easy monetary
policy and massive fiscal stimulus that could drive a rapid post pandemic
recovery saw the dollar under pressure,” said Robert Rennie, head of
financial market strategy at Westpac.

 

Against a basket of currencies, the dollar index was pinned at 91.771 having
shed 2.4% for the month to lows last seen in mid-2018.

 

The euro has caught a tailwind from the relative outperformance of European
stocks and climbed 2.7% for the month so far to reach $1.1967. A break of
the September peak at $1.2011 would open the way to a 2018 top at $1.2555.

 

The dollar has even declined against the Japanese yen, a safe-haven of its
own, losing 0.7% in November to reach 103.89 yen, though it remains well
above key support at 103.16.

 

Sterling stood at $1.3334, having climbed steadily this month to its highest
since September, as investors wagered a Brexit deal would be brokered even
as the deadline for talks loomed ever larger.

 

One major casualty of the rush to risk has been gold, which was near a
five-month trough at $1,771 an ounce having shed 5.6% so far in November.

 

Oil, in contrast, has benefited from the prospect of a demand revival should
the vaccines allow travel and transport to resume next year. [O/R]

 

Some profit-taking set in early Monday ahead of an OPEC+ meeting to decide
whether the producers’ group will extend large output cuts. Brent crude
futures fell 52 cents to $47.66, while U.S. crude eased 60 cents to $44.93 a
barrel.

 

 

 

U.S. shale firms amp up natural gas output as futures signal more gains

HOUSTON/NEW YORK (Reuters) - Higher natural gas futures prices for 2021 and
a continued glut of crude oil are prodding U.S. shale firms to boost gas
drilling and production.

 

Shale producers are increasing spending on natural gas, a change from the
past, amid forecasts for a 45% jump in gas prices next year compared to a
15% gain for Brent prices. The shift is a reminder to the Organization of
the Petroleum Exporting Countries meeting this week how shale moves quickly
in response to price. The OPEC group is considering whether to ease oil
output curbs from Jan. 1.

 

The largest U.S. shale oil producer, EOG Resources, this month said next
year it will start selling gas from 15 new wells from a newly discovered
field holding 21 trillion cubic feet of gas. Continental Resources recently
shifted drilling rigs to gas from oil in Oklahoma. Apache Corp this month
said it plans to complete three Texas wells after lifting its third-quarter
U.S. gas production by 15% over the second quarter and 6% over the same
period last year.

 

“Demand has remained pretty robust. Supply has been starved for capital,”
said Christopher Kalnin, chief executive of Denver-based Banpu Kalnin
Ventures, which last month closed a deal to acquire Devon Energy natural gas
assets. Banpu Kalnin has hedged about 65% of its gas production for next
year.

 

The number of U.S. rigs drilling for natural gas, an indicator of future
output, has climbed 13% to 77 since July. About a quarter of all active U.S.
rigs are drilling for gas, up from 16% last year, according to services firm
Baker Hughes.

 

In the Haynesville gas field that spans Louisiana and Texas, the number of
working rigs is up 25% since July. Rigs also are up 8% in the Marcellus, the
top U.S. gas field.

 

HIGHEST IN TWO YEARS

Gas prices could jump 45% to an average $2.94 per million British thermal
units (mmBtu) in 2021, from $2.03 this year, analysts predict. That would be
the highest annual average since 2018. [NGAS/POLL] Summer 2021 prices could
hit $3.50 per mmBtu, according to Bank of America, from $2.84 per mmBtu on
Friday.

 

Helping drive the improved outlook is expanding U.S. liquefied natural gas
(LNG) shipments. This month, LNG exports rose above pre-COVID-19 levels and
could average 8.4 billion cubic feet per day in 2021, a 31% increase from
2020, according to the latest U.S. Energy Information Administration
forecast.

 

Producers have doubled their natural gas hedges since March, locking in
prices for future output. They have hedged 53% of next year’s gas volumes
compared with 43% of their oil, according to finance services firm Raymond
James.

 

Natural gas “has not been hit as hard as crude,” by the COVID-19 pandemic,
said Bernadette Johnson, a vice president at data provider Enverus. “For
those that have some diversity in their assets, it can help them weather the
storm.”

 

EOG’s gas wells at its new field are as profitable as its best oil wells.
Future drilling there after 2021 will be “based on market conditions,” said
Executive Vice President Ken Boedeker.

 

GAS SHARES CLIMB

Gas prices are benefiting in part from oil drilling cutbacks that reduced
associated gas, or gas produced as a byproduct of oil output. The decline in
associated gas has led to the current gas-price rally, said Eugene Kim,
analyst at consultancy Wood Mackenzie.

 

The price rally has boosted shares of natural gas-focused shale producers.
Range Resources is up about 65% this year, EQT by 48% and Southwestern
Energy Co has climbed more than third. In contrast, the SPDR S&P Oil & Gas
Exploration & Production ETF is down 39% through Friday.

 

 

 

 

China's factory activity expands at fastest pace in over three years

BEIJING (Reuters) - China’s factory activity expanded at the fastest pace in
more than three years in November, while growth in the services sector also
hit a multi-year high, as the country’s economic recovery from the
coronavirus pandemic stepped up.

 

Upbeat data released on Monday suggests the world’s second-largest economy
is on track to become the first to completely shake off the drag from
widespread industry shutdowns, with recent production data showing
manufacturing now at pre-pandemic levels.

 

China’s official manufacturing Purchasing Manager’s Index (PMI) rose to 52.1
in November from 51.4 in October, data from the National Bureau of
Statistics showed. It was the highest PMI reading since September 2017 and
remained above the 50-point mark that separates growth from contraction on a
monthly basis. It was also higher than the 51.5 median forecast in a Reuters
poll of analysts.

 

“The rise in November manufacturing PMI, with broad-based improvements
across the sub-indices, suggest the recovery momentum in the industrial
sector has become more certain,” Zhang Liqun, analyst at China Federation of
Logistics & Purchasing.

 

“But the results also showed inadequate demand is still a common issue
facing firms. We need to consolidate the policy support aimed to expand
domestic demand.”

 

China’s blue-chip stock market index hit a 5-1/2 year high following the
brisk data.

 

The robust headline PMI points to solid fourth-quarter growth, which
analysts at Nomura expect to quicken to 5.7% year-on-year, from 4.9% in the
third quarter, an impressive turnaround from the deep contraction earlier
this year.

 

The economy is expected to expand around 2% for the full year, the weakest
in over three decades but still much stronger than other major economies
that are struggling to bring their coronavirus outbreaks under control.

 

The official PMI, which largely focuses on big and state-owned firms, showed
the sub-index for new export orders stood at 51.5 in November, improving
from 51.0 a month earlier. That bodes well for the export sector, which has
benefited from strong foreign demand for medical supplies and electronics
products.

 

Also helping activity in November were strong e-commerce shopping
promotions, which unleashed solid consumer demand and bolstered confidence
for small and medium firms.

 

But a surging yuan and further lockdowns in many of its key trading partners
could pressure Chinese exports, which have been surprisingly resilient so
far.

 

 

More companies have reported the impact from currency fluctuations, compared
with a month ago, said Zhao Qinghe, senior statistician at the NBS.

 

“Some firms have flagged that as the yuan continues to rise, corporate
profits are under pressure and export orders are declining,” said Zhao.

 

He added the recovery across the manufacturing industry remained uneven. For
example, the PMI for the textile industry has stayed below the 50-point
threshold, pointing to weak business activity.

 

CONSUMER COMEBACK

In the services sector, activity expanded for the ninth straight month. The
official non-manufacturing Purchasing Managers’ Index (PMI) rose to 56.4,
the fastest since June 2012 and up from 56.2 in October, as consumer
confidence gathered pace amid few COVID-19 infections.

 

Railway and air transportation, telecommunication and satellite transmission
services and the financial industry were among the best performing sectors
in November.

 

A sub-index for construction activity stood at 60.5 in November, improving
from 59.8 in October, as China steps up infrastructure spending to revive
its economy.

 

Monday’s data also showed the labour market is still facing strains.
Services firms reduced payrolls at a faster clip in November, data showed,
while factories slashed staff for the seventh straight month, although at a
slower pace.

 

“The continued recovery reduces the need for further monetary easing, but
any shift to tightening is also unlikely given continued labour market
pressure,” said Erin Xin, Greater China economist at HSBC.

 

 

 

 

China grants Tesla green light to start selling Shanghai-made Model Y SUV

SHANGHAI (Reuters) - Tesla Inc has obtained permission to start selling its
Shanghai-made Model Y sports utility vehicle in China.

 

The Ministry of Industry and Information Technology published the approval
on its website on Monday.

 

Tesla, now sells its Model 3 electric cars in China and has been building
new car manufacturing capacity in Shanghai to make its Model Y SUVs. It
applied for the Shanghai-made Model Y SUV sales permission earlier this
month.

 

It started delivering vehicles made in its Shanghai factory last December
and sold more than 13,000 vehicles in China in October.

 

The company has started exporting China-made Model 3 cars to Europe and said
last week it plans to also start making electric vehicle chargers in China
in 2021.

 

 

 

Tokyo Stock Exchange CEO to resign over October system failure

TOKYO (Reuters) - The head of the Tokyo Stock Exchange will step down over a
system failure last month, the bourse’s operator said on Monday, after the
disruption halted trading for an unprecedented full day and drew a rebuke
from Japan’s financial regulator.

 

Koichiro Miyahara, the TSE’s president and chief executive, will resign from
his post and will be replaced by the Akira Kiyota, the head of Japan
Exchange Group Inc, which owns the exchange.

 

At a news conference, Kiyota apologised over the outage, which he called a
“major inconvenience”.

 

Japan’s financial regulator said it had issued a business improvement order
to both the TSE and Japan Exchange Group over the disruption.

 

The outage on Oct. 1 cast a shadow on the exchange’s credibility as Prime
Minister Yoshihide Suga prioritised digitalisation, and dented Tokyo’s hopes
of boosting the country’s standing as a global financial centre.

 

“The all-day trading halt at Tokyo bourse significantly undermines
investors’ trust,” the Financial Services Agency said in a statement, noting
the exchange needs to clarify where responsibility lies.

 

Financial regulators last month conducted an on-site inspection on the
exchange to investigate the causes behind the outage.

 

The all-day trading halt was the worst-ever outage since the world’s
third-largest equity market switched to all-electronic trading in 1999. The
exchange previously said the glitch was the result of a hardware problem at
the bourse’s “Arrowhead” trading system and a subsequent failure to switch
to a back-up.

 

The exchange had also said a newly formed committee would draw up fresh
guidelines by next March on how to restart trading following a system
failure.

 

 

 

Universal Studios Japan to open Super Nintendo World area on Feb. 4

TOKYO (Reuters) - Universal Studios Japan will open its new Nintendo themed
area on Feb. 4, the Osaka-based theme park said on Monday, after pushing
back the opening from the summer due to the coronavirus outbreak.

 

The “Super Nintendo World” area will feature Mario Kart races and other
attractions based on Nintendo games, according to Universal Studios Japan.

 

“Super Nintendo World” had originally been scheduled to open in time for the
2020 Tokyo Olympic Games, which have also been delayed due to the pandemic.

 

Universal Studios Japan is owned by Comcast Corp..

 

 

 

Italy's antitrust fines Apple 10 million euros for misleading commercial
practices

ROME (Reuters) - Italy’s antitrust authority said on Monday it had fined
Apple 10 million euros ($12 million) for “aggressive and misleading”
commercial practices regarding its iPhones.

 

The regulator said in a statement the company advertised that several iPhone
models were water-resistant without clarifying they were only so under
certain circumstances.

 

It added that the company’s disclaimer, saying that its phones were not
covered by warranty in case of damage from liquids, tricked clients, who
were also not provided support when their phones were damaged by water or
other liquids.

 

Apple declined to comment.

 

 

 

Nigeria: Power Supply Partially Restored After National Grid's Collapse

The national power grid collapsed again yesterday, plunging most parts of
the country into a blackout, a development the Transmission Company of
Nigeria (TCN) attributed to multiple tripping of the system.

 

But the TCN, which is wholly controlled by the federal government, stated
that it was investigating the blackout while as of yesterday evening, power
had been restored to some parts of the country.

 

This is coming as the Abuja Electricity Distribution Company (AEDC) has said
that the activities of some vandals had thrown parts of its franchise areas
in Abuja and environs into a total darkness.

 

Kaduna Electricity Distribution Company (KEDCO) and their counterpart in
Lagos, Eko Electricity Distribution Company (EKEDC), which first announced
the national grid collapse, also apologised to customers for the
inconvenience.

 

The national grid has continued to suffer system failures over the years,
which the sector players say could be solved by the acquisition of a
spinning reserve, a generation capacity that is online and can compensate
for generation or transmission during collapses.

However, as of 5pm yesterday, a statement by the General Manager, Public
Affairs of the TCN, Mrs. Ndidi Mbah, noted that power had been restored to
many parts of the country, except parts of Cross River, Benue, Plateau,
Borno among others.

 

"The Transmission Company of Nigeria (TCN) regrets to inform electricity
consumers nationwide that at 11:25am today, the nation's electricity grid
experienced multiple tripping, which led to the collapse of the system.

 

"TCN has since commenced grid restoration; power has been successfully
restored to every part of the country, except Calabar, Ugwuaji, Makurdi,
Jos, Gombe, Yola and Maidugiri axis. Effort is, however, ongoing to ensure
full restoration nationwide.

 

"We regret the inconvenience this has caused electricity consumers.
Investigations would be conducted to establish the immediate and remote
cause(s) of the multiple tripping as soon as the grid is fully restored -
considering that the grid had been relatively stable in the last couple of
months," TCN said.

Four states in the north-west zone have lost electricity supply following
the collapse of the national grid.

 

The Kaduna Electricity Distribution Company, in a statement yesterday by its
spokesman, Mr. Abdulazeez Abdullahi, listed the states as Kaduna, Kebbi,
Sokoto and Zamfara, which are within its franchise.

 

It added that consumers in the area won't have power supply until the grid
is backed up.

 

Also, the Abuja Electricity Distribution Company (AEDC) said vandals had
thrown parts of its franchise areas in Abuja and environs into darkness.

 

A statement by the company's spokesman, Mr. Oyebode Fadipe, noted that over
15 districts and communities were affected by the damage done to the
transmission line.

 

"Customers living in the underlisted locations are hereby informed that as a
result of the activities of vandals on the 330/132kV Gwagwalada/Kukwaba line
that transports power to the 2 x 60MVA Kukwaba injection substation, power
supply to the areas has been disrupted.

 

"The affected areas are: Kaura District, Galadimawa, Lokogoma, Suncity,
Maccido Housing Estate, Games Village, Eyes Centre Hospital, National
Stadium, Feeds Milipat Filling Station, part of Indoor Stadium, Kuchingoro,
Karamajigi, King Park Estate, Royal Anchor Estate, DSS Quarters, Wilbahi
Estate, Wuye, Utako and environs.

 

"While the live-line maintenance crew of the TCN is already working on the
vandalised section of the 330kV/132kV line, efforts are also on to back-feed
our customers from Apo," the Disco said.-This Day.

 

 

 

East Africa: Regional Stock Markets Automate Trading

Four East African countries - Rwanda, Uganda, Tanzania, and Burundi - have
finally merged their stock markets through a decade-long automation project
to attract investment.

 

The automation means now investors will be allowed to trade their stocks
electronically across the borders next month, according to Celestin
Rwabukumba, the chief executive of the Rwanda Stock Exchange.

 

It is a project that has been in the making since 2011 when countries from
the region embarked on integrating their stock exchanges, although at a time
Rwanda was only starting to invest in its capital market.

 

The World Bank-funded project has been completed with only a few states for
the technology system to go live, according to Rwabukumba who's also the
chairman of the East Africa Securities Exchange Association (EASEA).

"There was a time for you to trade your KCB shares in our market, you needed
to go on a bus, get your shares certificate from Kenya and bring it to
Rwanda or send it by DHL," he said.

 

That was inefficient and costly.

 

"Today, it's going to be happening in the blink of an eye. The system will
allow you to open an account across markets, boost access to a pool of
investments, as well as give you visibility," he noted.

 

Through the platform, investors in the four countries will be able to buy
and sell shares of companies listed in any of the countries without going
through different stakeholders.

 

Kenya had reportedly pulled out of the project in 2015 over alleged
procurement irregularities, but Rwabukumba said they have "formally
expressed interest" to join again.

Kenya currently has the largest and active capital market in the region.

 

The Nairobi Securities Exchange comprises approximately 66 listed companies
with a daily trading volume of more than $10 million and a total market
capitalization of more than $20 billion.

 

Rwanda's bourse, on the other hand, has a market capitalization of just $3.5
billion, but the move by the region is expected to diversify markets such as
that of Rwanda and create a wide pool of both retail and institutional
investors.

 

George Odhiambo, the Managing Director of KCB Bank Rwanda, part of KCB Group
whose shares are listed both in Kenya and Rwanda, said the automation is
likely to bring a lot of benefits towards promoting the capital market.

 

"Any automation should reduce transaction costs, improve operational
efficiencies and speed deals closure for the benefit of stakeholders," he
told The New Times on Thursday.

The platform

 

The technology platform dubbed the EAC Capital Markets Infrastructure (CMI),
developed by a Pakistan-based private firm, will basically interconnect all
the region's trading systems.

 

It has features such as the smart order router, which will enable
stockbrokers to view all markets and market information across the region,
and the messaging feature that will allow market players to communicate.

 

However, for stockbrokers to trade, they will have to fulfil certain
conditions including minimum capital requirements. For instance, a regional
broker to be allowed to trade across the region will have to be capitalized
at Rwf240 million.

 

Alternatively, for brokers to trade they would have to have "sponsored
membership" in a local market where they want to buy stocks.

 

"It means you will have to sign an agreement with a broker in Dar es Salaam
through which you can execute orders. This is because stock markets are
still governed by regulations in host markets," he noted.

 

Rwanda, which is looking to leverage the integration project to promote its
capital market, started its bourse officially in 2011.

 

Other members in the region have had their stock exchanges for many years,
except Burundi which is yet to establish one.

 

The joint stock market in East Africa follows in the steps of a similar
regional effort in West Africa where Bourse Régionale des Valeurs Mobilières
already exists.

 

The Abidjan-based electronic exchange which lists 45 companies is common to
the eight-member states of the West African Economic and Monetary Union -
Benin, Burkina Faso, Guinea Bissau, Côte d'Ivoire, Mali, Niger, Senegal, and
Togo.-New Times.

 

 

 

Nigeria: Govt, CBN Point to Results in Economy Recovery Plan

At the backdrop of the slide into the second recession in five years, fiscal
and monetary authorities are indicating that efforts are on all fronts to
ensure early exit from the recession.

 

While the Federal Government has indicated that implementation of its N2.3
trillion Economic Sustainability Plan, ESP, has started, the Central Bank of
Nigeria, CBN, is saying that in addition to all its major economic stimulus
measures, it was also mobilising banks to back the government efforts.

 

Speaking at the Chartered Institute of Bankers' annual dinner at the
weekend, CBN Governor, Godwin Emefiele, hinted that all the economy recovery
measures of the apex bank are already at advanced stages of implementation
with some positive results already recorded.

He stated: "The fiscal and monetary authorities took unprecedented measures
to prevent any long-term damage to the growth prospects of our economy.

 

"Our first objective was to restore stability to the economy by providing
assistance to households and businesses that had been severely affected by
the pandemic.

 

"In addition, we sought to stimulate economic activities through targeted
interventions in critical sectors such as agriculture, manufacturing,
electricity and construction.

 

"Some of these measures we took include: A cumulative reduction of the
monetary policy rate from 13.5 to 11.5 percent between May and September
2020 in order to spur lending to the economy; A 1-year extension of the
moratorium on principal repayments for CBN intervention facilities;
Regulatory Forbearance was granted to banks to restructure loans given to
sectors that were severely affected by the pandemic; Reduction of the
interest rate on CBN intervention loans from 9 to 5 per cent and;
Strengthening of the Loan to Deposit ratio policy, which has resulted in a
significant rise in loans provided by financial institutions to banking
customers."

Other elements of the economic stimulus packages already being implemented,
according to him, are: "The over N738 billion provided as credit to
manufacturing related activities by the banks. Creation of N150 billion
Targeted Credit Facility (TCF) for affected households and small and medium
enterprises through the NIRSAL Microfinance Bank. Already, N149.21 billion
has been disbursed to 316,869 beneficiaries."

 

He added, "Given the resounding success of this program and its positive
impact on output growth, we have decided to double this fund to about N300
billion, so as to accommodate many more beneficiaries and boost consumer
expenditure which should positively impact output growth; The Bank also
disbursed AgriBusiness/Small and Medium Enterprise Investment Scheme
(AGSMEIS) (N92.90 billion to 24,702 beneficiaries), Anchor Borrowers Program
(ABP) by the sum of N164.91 billion to 954,279 beneficiaries ; Mobilization
of key stakeholders in the Nigerian economy through the Coalition against
COVID19(CACOVID), which led to the provision of over N28billion in relief
materials to affected households, and the set-up of 39 isolation centers
across the country; and creation of a N100 billion intervention fund in
loans to pharmaceutical companies and healthcare practitioners intending to
expand and strengthen the capacity of our healthcare institutions."

Results of our interventions

 

Emefiele, said : The impact of these measures along with the removal of
restrictions on movement and resumption of international travel, led to
improvement in key indicators of the economy, as several economic activities
returned to positive growth.

 

Äccording to him : "A sectoral assessment of economic activities in the
third quarter indicates that the economy witnessed positive growth in key
sectors such as Information and Communications Technology, Agriculture,
Classified as Confidential Health, Construction, Finance and Insurance and
Public Administration. The Agricultural sector continued to record positive
growth supported by productivity gains in the sector, interventions by the
government, and improved demand for local produce.

 

"The Manufacturing Purchasing Managers Index, in the month of November stood
at 50.2 points, indicating an expansion in manufacturing activities after
six months of contraction. A total of 18 sectors recorded positive growth in
the third quarter relative to 13 sectors in the second quarter, which
reflects significant improvement in economic activity.

 

"Furthermore, 36 out of the 46 economic activities tracked by NBS, reflected
positive improvements in growth, which includes activities that recorded
negative growth.

 

"In the Investors and Exporters Window, close to $150m is being traded daily
as a result of our measures to sanitize activities in the foreign exchange
market. In addition, the Nigerian Stock Exchange All Share index rose by 65
percent between April and November 2020, reflecting improved sentiments by
investors on the fundamentals of publicly listed companies.

 

"As a result of these measures, GDP growth in the third quarter, improved to
-3.6 per cent from -6.1 per cent in quarter two, even though the economy
fell back into a recession.

 

"We however expect that Nigeria would emerge from the recession by the first
quarter of 2021, due to high frequency data that indicates continued
improvements in the non-oil sector of our economy."-Vanguardngr.com

 

 

 

Nigeria: Govt Inaugurates 100kwp Solar Hybrid in Ebonyi Community

The federal government has inaugurated a 100KWP solar hybrid mini grid in
Eka Awoke community in Ebonyi State, provided by Cloud Energy, an energy
solutions provider.

 

The intervention was done in partnership with the Rural Electrification
Agency (REA), designed to address the shortage of electricity in Nigeria.

 

Prior to the inauguration, the remote community had no electricity serving
the people.

 

Governor of Ebonyi State, Mr. David Umahi, who was represented by the Deputy
Governor, Kelechi Igwe, and the Minister of State for Power Mr. Goddy Jedy
Agba, including the Managing Director/CEO of REA, Mr. Ahmad Sahilijo Ahamad,
were on ground for the commissioning.

Others present were, Member Representing Ikwo LGA, Chinedu Ogar, the
Executive Director Rural Electrification Agency Dr. Sanusi Ohiare, Directors
of REA; and the traditional ruler of Eka Awoke community in Ikwo Local
Government Area of Ebonyi State, Eze Ogalegu.

 

In his remarks, the Ebonyi State Deputy Governor, described the Eka Awoke
Solar mini-grid as a revolutionary transformation of infrastructure.

 

He thanked the federal government for providing another power plant in the
state with an assurance that more would follow.

 

The Deputy Governor said he was proud of the competence displayed by Cloud
Energy on the execution of the Eka Awoke 100KWP mini-grid project while
urging the youths to take advantage of steady electricity to boost economic
development.

 

In his speech, the minister expressed delight that the Eka Awoke community
would begin to experience economic growth and development powered by the
100KWP Solar hybrid mini-power plant. The Managing Director, CEO Rural
Electrification Agency, REA, Ahmad Salihijo Ahmad said he was delighted to
be commissioning his first mini-grid project since assumption of office. He
was more delighted that homes, businesses and the entire community will now
have access to clean, safe and sustainable energy. This automatically
enhances productivity and provides jobs in the community.

 

Managing Director of Cloud Energy, Theophilus Nweke, paid tribute to the
commitment and professionalism of REA.-This Day.

 

 

Kenya to Position Tea Tours as Part of Tourism Offerings

Nairobi — Kenya is positioning tea tours as part of top tourism experiences
that will add to the diversity of tourism products offered by the
destination.

 

Bomet County on Friday played host to the unveiling of the tea tourism
product ceremony paving the way for packaged tea tours across tea growing
areas in the country.

 

"Countries such as India and China boast of tea tours, they have curved this
niche because of the crop which Kenya is also known for, an opportunity we
have sat on for so long," said Chief Administrative Secretary in the
Ministry of Tourism and Wildlife Joseph Boinet.

 

Speaking during the launch of the tourism product, CAS called on tour
operators in the region to immediately package their travel plans to
incorporate the tea product in line with the diversity of tourism packages.

 

"There is no better way of building a synergy between tourism and
agriculture than embracing tea tourism as an entry point to agro-tourism
ventures. This will not only sustain our economic livelihoods, but our
tourism strategy to diversify product offering," said CAS.

 

For the south Rift region, Boinet pointed out, the perfect blend of both tea
and wildlife safari offered by the famous Masai Mara Game reserve will be an
exciting travel plan for both the local and international visitor.

 

Kenya is globally known for her great agricultural and horticultural
offerings especially tea, coffee, and flowers. These are attributes, Boinet
noted, should be jealously guarded and harnessed to propel country's
economic gains.

With the unveiling of tea as a tourism experience, local and international
visitor will be taken through a journey of tea husbandry popularly known as
'from the bush to the tea cup'. According to the tourism marketer, Kenya
Tourism Board (KTB), there is already increasing interest by travel agencies
for tea tours in Kenya.

 

Bomet governor Dr. Hillary Barchok said the strategic location of the county
as a gateway to the world famous Maasai Mara Game Reserve will give
opportunity for travelers to experience both the tea and wildlife safari as
one package.

 

He said the region will anchor the destination for tea tours already
showcased in countries such as India and China. The launch of this product
is the beginning of full exploration and maximization of benefits that is
inherent in the tea product both at economic and social levels "affirmed the
governor.

 

Kenya is among the top three leading producers of tea with exports to Asia,
Europe and the US.

 

The suitable weather coupled with good husbandry has ensured that Kenya's
position as a premier tea destination remains undisputed. Kenyan tea is used
to blend teas from other destinations, an attribute that makes it the best
globally.-Capital FM.

 

 

Nigeria: 25 Million Nigerians to Own Solar Systems At N4,000 Monthly -
Presidency

The federal government will on Tuesday unveil the five million Solar Home
System (SHS) with users paying N4,000 monthly and becoming owners after
three years payment.

 

The programme is under the Economic Sustainability Plan and will benefit
about 25 million Nigerians not served by the national grid, who will
outrightly own solar panels in their residences.

 

The Rural Electrification Agency (REA) which is one the implementing
agencies, said it will be unveiled on Tuesday.

 

Mr. Laolu Akande, Senior Special Assistant to the President on Media and
Publicity in the Vice President's office in a statement, said the ESP Solar
programme is nicknamed SOLAR POWER NAIJA.

 

Akande added that an important aspect of the scheme is the option of
outright ownership by beneficiaries at a cost ranging from N1,500 per week
to N4,000 monthly depending on the capacities.

 

As indicated in the Economic Sustainability Plan, the 5 million Connections
initiative is a private sector-led electricity access acceleration scheme to
be facilitated by a low cost loan facility from the Central Bank of Nigeria
(CBN) and implemented by REA.

 

"The programme will include the assembly or manufacturing of components of
off-grid solutions to facilitate growth of the local manufacturing industry.

 

"In addition, installation, servicing and payment collections are expected
to provide thousands of other jobs. In all, at least 250,000 jobs will be
created."-Daily Trust.

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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

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

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

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

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


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

 


 

 

 

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201130/3b2d9378/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201130/3b2d9378/attachment-0002.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 48248 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201130/3b2d9378/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 22328 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201130/3b2d9378/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201130/3b2d9378/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 108363 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201130/3b2d9378/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65573 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201130/3b2d9378/attachment-0001.obj>