Major International Business Headlines Brief::: 01 October 2020

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Major International Business Headlines Brief::: 01 October 2020

 


 

 


 <mailto:info at bulls.co.zw> 

 


 

 


 

 

ü  How controversial data firm Palantir hit $22bn

ü  Technical glitch halts trading on Japan's exchanges

ü  Google Pixel phone 'designed for economic downturn'

ü  Shell to cut up to 9,000 jobs as oil demand slumps

ü  UK beef exports to US resume after more than 20 years

ü  'Chicken Licken' views will hold us back, says Bank economist

ü  Ocado overtakes Tesco as most valuable UK retailer

ü  William Hill agrees $2.9bn takeover by Caesars Palace-owner

ü  Boohoo profit soars despite factory conditions row

ü  Govt Clears Emirates to Resume Flight Operations in Nigeria

ü  Fitch Upgrades Nigeria's Outlook to 'Stable'

ü  Madaraka Express Resumes Full Service

ü  Ethiopia Readies to Launch Second Satellite, Plans for 10 More By 2035

ü  Mozambique: Renewable Energy Auctions Launched

ü  Tokyo stock exchange trading halted for the day due to technical problem

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

How controversial data firm Palantir hit $22bn

US tech firm Palantir, known for supplying controversial data-sifting
software to government agencies, has fetched a market value of nearly $22bn
(£17bn) in its debut on the New York Stock Exchange.

 

It's a lofty figure for a firm that has never turned a profit, been hit by
privacy concerns and relies on public agencies for nearly half of its
business.

 

But the company, which takes its name from the "seeing stones" known for
their power and potential to corrupt in Lord of the Rings, says the need for
the kind of software it sells "has never been greater".

 

The firm, which launched in 2003 with backing from right-wing libertarian
tech investor Peter Thiel and America's Central Intelligence Agency (CIA),
builds programs that integrate massive data sets and spit out connections
and patterns in user-friendly formats.

 

Palantir expansion

The firm - sometimes described as the "scariest" of America's tech giants -
got its start working with US soldiers in Iraq and Afghanistan, but now
supplies software to police departments, other public agencies and corporate
clients.

 

It is active in more than 150 countries, including the UK, where it was one
of the tech firms the government enlisted this spring to help respond to
coronavirus.

 

NHS uses tech giants to plan coronavirus response

Who is Trump adviser Peter Thiel?

In the first half of 2020, Palantir revenue rose 49% year-on-year, topping
$480m (£373m). And at its direct listing on Wednesday, in which investors
sold some of their existing shares to the public, shares opened at $10 each
- above the $7.25 reference price - giving it a value of roughly $22bn.

 

Mark Cash, equity research analyst at Morningstar, who has estimated the
firm's value at $28bn - even higher than the valuation reached on Wednesday
- said the firm is well-positioned in a growing industry.

 

"Data integration at this scale for the government is very complex and I
think if you tried to stop spending on that and it just goes away, you're
going to have some big problems," he said. "We think it's very hard to
switch away from once you're in as a customer."

 

ICE and privacy protests

But Palantir's rise has been shadowed by concerns from privacy experts, who
say the firm's tools enable surveillance and analysis of data - everything
from drivers licenses and social media posts to DNA swabs - that skirts
people's right to privacy and is ripe for abuse.

 

In the US, the use of its technology by immigration authorities to help
round-up undocumented immigrants has drawn heated protests and in the UK,
the health data handled by the firm has also raised alarms.

 

Ahead of the firm's listing, Amnesty International issued a report saying
the firm was failing its responsibility as a company to protect human rights
with inadequate due diligence into who it is working for.  

 

"We have to move away from the idea that data analytics and data collection
is objective or clean or immune from all the pathologies that we're seeing
play out right now," said Paromita Shah, executive director at Just Futures
Law, which focuses on immigration law.

 

"Our governments are the problem because they don't want to set up
oversight, but Palantir takes advantage of it."

 

'We have chosen sides'

Palantir told Amnesty that it had deliberately declined some work with
border authorities in the US due to the concerns.

 

But the company has also vigorously defended its government work,
maintaining that its clients own and control the data. It says it has a team
focused on civil liberties issues, but it is government's job to craft
policy, not Silicon Valley's.

 

It has contrasted its commitment to some other tech firms, such as Google,
which stopped work on an artificial intelligence project with the Pentagon
after a backlash from employees.

 

"Our company was founded in Silicon Valley. But we seem to share fewer and
fewer of the technology sector's values and commitments," chief executive
Alex Karp wrote in the filing announcing its plans to sell shares to the
public. "We have chosen sides, and we know that our partners value our
commitment".

 

The outspoken defence is perhaps little surprise, coming from a firm
co-founded by Mr Thiel, who famously abandoned Silicon Valley in 2018,
decrying its liberal politics.

 

Mr Thiel, whose estimated $2.1bn fortune was fuelled by the sale of PayPal
and an early investment in Facebook, funded the Hulk Hogan invasion of
privacy case that bankrupted gossip news site Gawker and has given
generously to conservative politicians.

 

In 2016, he donated more than $1m to US President Donald Trump, though he is
reportedly sitting out this election cycle.

 

By contrast, chief executive Alex Karp, who met Mr Thiel when they both
attended Stanford Law School, is a self-described neo-Marxist and
"card-carrying progressive", with a doctorate degree in neo-classical social
theory from a Goethe University in Germany.

 

He displays Tai Chi swords in his offices, according to Bloomberg and the
firm's presentation to investors this month opened with a video of him
racing up a hill in orange exercise gear.

 

Prospective investors have to be "comfortable" with the firm's leaders -
especially since, under the terms of the listing, they will continue to
wield outsize voting power over the firm, even after ownership shifts to the
public, said Mark Moerdler, senior research analyst at Bernstein Research.

 

His team also warned in a recent note that the controversies could hurt the
firm's efforts to win private sector clients.

 

"Politics has entered business in a way we haven't seen before and you see
large companies being influenced by employees and others in interesting
ways," Mr Moerdler told the BBC. But, he added, "I don't think it will
fundamentally impact their ability to grow the business if the opportunities
are as large as they believe they are." 

 

Palantir may be an American company, but it actually employs more people in
London - just shy of 600 - than in either its Silicon Valley base or Denver
headquarters.

 

That reflects both the work it does for European clients including BP,
Airbus and Ferrari - but also its UK government contracts, which predate the
coronavirus pandemic by several years.

 

These - a source told me - have included work with GCHQ's cyber-spies as
well as publicly declared work for the Ministry of Defence.

 

Big data analytics may sound like a dry subject, but speak to the firm's
staff and they can speak passionately about a job that they say has involved
helping fight drug cartels, catch child predators and prevent terrorist
attacks.

 

But while Palantir might like to highlight the lives it helps save, it has
also been accused of having "blood on its hands" by civil rights protesters.
They object to its tech bring used to identify places where illegal
immigrants are working so the properties can be raided and those arrested
deported.

 

In fact, the firm has effectively become the boogeyman of surveillance tech.

 

Shareholders will have to be aware that while many states and companies see
benefit from using its software, there are also many with an interest in
exposing any further controversies it might be involved in.

 

Palantir financial prospects

Just how big those opportunities are remains an open question.

 

While its efforts to make inroads in the corporate world were rocky
initially, Palantir's commercial business has grown. It now accounts for 53%
of revenue and includes customers such as French airplane-maker Airbus and
energy giant BP.

 

And Palantir has said it is well-poised to continue to win government work,
thanks to a lawsuit it won against the US military in 2016, which requires
the government to consider commercially available products first.

 

The firm's finances have also improved in recent years, amid pressure from
early backers to list shares publicly and allow them to cash out.

 

In 2019, the firm brought in $743m in revenue, up 25% from the year before,
with some 60% of sales from outside the US.

 

But Palantir still posted a loss of nearly $580m last year and relies on a
relatively small number of clients for the majority of its revenue.

 

Its nearly $22bn opening valuation was only a bit higher than the $20bn
private investors valued the firm when it fundraised five years ago.

 

And as Palantir starts to trade publicly, scrutiny has only grown. This
month, liberal US politicians, including Rep Alexandria Ocasio-Cortez, asked
financial regulators to investigate the firm, saying the information it had
provided to investors lacked transparency on key areas of risk, including
data protections and work with foreign governments.

 

Growth will depend on landing new, large deals every year while retaining
their profitable clients - and the firm hasn't shared much about its record,
said Mr Moerdler.

 

"If they can make the product critical to an organisation, it can be sticky,
but the road there is long," he said. "In terms of growing, it still needs
to be proven."--BBC

 

 

 

Technical glitch halts trading on Japan's exchanges

A technical problem has forced a full-day halt to trading on Japan's stock
exchanges, including the popular Nikkei 225 index.

 

A Japan Exchange Group statement gave no details about the nature of the
glitch and didn't indicate when trading would resume again.

 

Stock exchanges in Tokyo, Nagoya, Fukuoka and Sapporo all suffered suspended
trading on Thursday.

 

The shutdown follows cyber-attacks on New Zealand's stock exchange in
August.

 

"Trading in all shares on the Tokyo Stock Exchange is suspended due to
glitches linked to the delivery of market information," Japan Exchange Group
said in a statement.

 

New Zealand stock exchange halted by cyber-attack

Tokyo's roughly $6tn (£4.6tn) stock market is the world's third largest,
after New York and Shanghai, according to data from the World Federation of
Exchanges

 

The problem was the exchange's first significant glitch since 2018, when a
trading system problem left some securities firms unable to make orders.

 

The Nikkei 225 index includes the shares of many of Japan's biggest
companies including Honda, Nissan, Hitachi and Canon.

 

Cyber-attacks

Many stock markets have been hit with temporary glitches in the past.

 

The New Zealand Exchange was hit in August by cyber-attacks that forced it
to halt trading over the course of one week.

 

Over the past decade, the tech-heavy Nasdaq, the New York Stock Exchange,
the London Stock Exchange, the Singapore stock exchange and Bombay's Sensex
have all faced technical glitches that have delayed trading.

 

In 2017, a temporary market error saw the share price of several major tech
firms wrongly listed at the same price on the Nasdaq.--BBC

 

 

 

Google Pixel phone 'designed for economic downturn'

Google's hardware chief has said its new flagship smartphone was designed to
go on sale during an economic downturn.

 

As a result, the Pixel 5 has abandoned some of its predecessor's headline
features and runs on a slower chip in order to be sold at a lower price.

 

However, it does gain 5G connectivity and some new photography capabilities.

 

Experts say it will face tough competition from other mid-range Android
handsets, but the included bundle of Google services could help.

 

"To not bring to market a true flagship demonstrates Google is now thinking
about the market in a very different way than it was last year," commented
Ben Stanton from the tech consultancy Canalys.

 

"And on a price-specs basis alone, Google will probably lose to Samsung and
Chinese competitors.

 

"Its key selling point, however, remains that it offers a stock Android
experience with superfast updates."

 

This is a reference to the fact that many other Android device-makers layer
their own proprietary user interfaces on top of Google's operating system,
and typically take longer to offer software updates.

 

The Pixel 5 will cost $699/£599, and has a 6in (15.2cm) display and 128
gigabytes of storage. That compares to the $999/£929 price of last year's
top-end 6.3in Pixel 4XL.

 

Google also unveiled a 5G-enabled version of its existing Pixel 4a, which
will cost £499.

 

Age of coronavirus

Smartphone designs are typically locked in place many months before the
products go on sale, in order to secure the required components and carry
out tests.

 

Google's senior vice president of devices and services acknowledged that the
Pixel 5's features had been decided upon before the coronavirus pandemic
began.

 

But he said a deliberate choice had been taken to offer a 5G-capable phone
at "an affordable price".

 

"What the world doesn't seem like it needs right now is another $1,000
phone," said Rick Osterloh.

 

"Obviously nobody anticipated the pandemic, but we actually did think that
the world was possibly headed for an economic downturn... and it only
further emphasised our point of view that this is the right thing."

 

Tech jettisoned from the Pixel 4 includes the Soli radar chip, which Google
had taken five years to develop. It automatically turned on the older
phone's screen when its owner approached and allowed gesture controls.

 

Last year's face-unlock sensors have also been ditched, with a return to the
Pixel 3's fingerprint sensor on the back of the Pixel 5.

 

"These technologies will be used in the future, but they're very expensive,"
Mr Osterloh said.

 

The Pixel 5's Snapdragon 765G chip is also rated as being slower and having
lower graphics-processing performance than last year's Snapdragon 855,
although Mr Osterloh said he did not believe consumers would notice.

 

The device does benefit from some improvements, including being able to
produce a shallow-focus effect in "super low-light conditions".

 

One of its rear cameras now has a wider angle lens than before. And there
are a choice of new video stabilisation modes.

 

In addition, the RAM memory has been boosted to 8GB, which should help the
phone switch from task-to-task more quickly.

 

And Google is bundling some of its subscription services including three
months of its games-streaming platform Stadia and 100 gigabytes of online
storage.

 

"Bundling three months of Stadia Pro cloud gaming with 5G Pixel phones is
smart, because gamers benefit in particular from the 5G experience,"
commented Ian Fogg from OpenSignal.

 

"But cloud gaming is still 'early' tech for mobile."

 

 

The Pixel 5's competition will include Samsung's Galaxy S20FE and the
forthcoming OnePlus 8T - which are also being targeted at the "mid-market".

 

Google shipped 4.6 million Pixel smartphones over the 12 months leading up
to July 2020, according to research firm IDC.

 

That marked a 37% drop over the same period a year earlier. However, a wider
fall in demand for smartphones meant the brand still rose from being ranked
16th to 12th in terms of market share for the final quarter of each period.

 

Google is the second best-selling smart speaker brand in Western markets.
But it is still forecast to sell about a third of the number of Amazon's
Echo speakers in the UK this year, according to research firm eMarketer.

 

Google also showed off a new version of its television-streaming dongle,
which is now called Chromecast with Google TV.

 

Unlike its predecessors, the device comes with its own remote control, which
allows users to control their TV and soundbar via its buttons or voice
commands as an alternative to using a smartphone app.

 

It also brings together movies and TV shows from the various apps each user
subscribes to in order to make its own recommendations.

The Apple TV set-top box and Amazon's latest Fire TV stick both offer
similar functions.--BBC

 

 

 

Shell to cut up to 9,000 jobs as oil demand slumps

Royal Dutch Shell has said it plans to cut 7,000 to 9,000 jobs as it
responds to challenges including the slump in oil demand amid the Covid-19
pandemic.

 

The oil giant said the cuts would be implemented by 2022 and included 1,500
people who were taking voluntary redundancy.

 

It gave no indication of where the job losses would happen.

 

The move comes five months after it cut its dividend for the first time
since World War Two.

 

Shell chief executive Ben van Beurden said the job cuts were "the right
thing to do for the future of the company" as it strives to become a
net-zero emissions energy business.

 

Shell employs 83,000 people worldwide, including 6,000 in the UK. It has
been hit by a substantial drop in profits since the pandemic struck.

 

It saw a 46% fall in first-quarter net income to $2.9bn (£2.3bn), while
second-quarter income fell 82% to $638m.

 

The firm said third-quarter earnings were expected to be "at the lower end
of the $800m to $875m range".

 

Who wins and who loses when oil prices fall?

Has the world started to take climate change fight seriously?

Shell is in the midst of a cost-cutting drive that is expected to deliver
annual savings of $2bn to $2.5bn by 2022.

 

Other big oil firms are facing similar challenges. Rival BP has also cut its
dividend and recently announced it was cutting 10,000 jobs out of its global
workforce of 70,000.

 

'Tough process'

"We have had to act quickly and decisively and make some very tough
financial decisions to ensure we remained resilient, including cutting the
dividend," said Mr van Beurden.

 

"But as hard as they were, they were entirely the appropriate choices to
make. And Covid-19 has hit us in another way. We have, very sadly, lost six
employees and six contractor colleagues to the virus."

 

Mr van Beurden described the job-cutting programme as "an extremely tough
process".

 

"It is very painful to know that you will end up saying goodbye to quite a
few good people," he said. "But we are doing this because we have to,
because it is the right thing to do for the future of the company."

 

He said Shell had to be "a simpler, more streamlined, more competitive
organisation that is more nimble and able to respond to customers".

 

Mr van Beurden reiterated that Shell intended to become a net-zero emissions
energy business by 2050 or sooner.

 

That meant the company had to change the type of products it sold, he said.

 

"We will have some oil and gas in the mix of energy we sell by 2050, but it
will be predominantly low-carbon electricity, low-carbon biofuels, it will
be hydrogen and it will be all sorts of other solutions too," he said.--BBC

 

 

 

UK beef exports to US resume after more than 20 years

British beef is back on US menus for the first time in more than 20 years as
exports restart on Wednesday.

 

The beef was banned after the BSE outbreak in 1996 when cattle were infected
by what became commonly known as Mad Cow Disease.

 

Some UK beef was cleared for export in March after US inspections in 2019,
and shipments from Northern Ireland's Foyle Food Group will be the first to
leave.

 

Ministers said the US market will be worth £66m to the UK over five years.

 

The Agriculture and Horticulture Development Board, a body funded by farmers
and the supply chain, called the resumption of exports a "historic moment".

 

Dr Phil Hadley, a director at the board, said: "The US represents an
important potential market for our red meat exports and today's first
shipment is the result of the hard work and persistence of industry and
government to bring about this crucial next step.

 

"This important milestone will bring a fantastic boost to the sector and we
look forward to seeing more of our red meat served up on dinner tables
across the US in the months and years to come."

 

In 2019, the US Food Safety Inspection Service undertook a series of audits
at UK beef, pork and lamb facilities. Pork exports to the US continue as
usual, while exports of lamb have yet to commence.

 

"This is great news for our food and farming industry, helping the sector go
from strength to strength," said Environment Secretary George Eustice.

 

Post-Brexit deals

International Trade Secretary Liz Truss said: "This could be just the tip of
the iceberg. The free trade deal we are negotiating with the US will create
a host of export opportunities for British agriculture. We are seeking an
ambitious and high standards agreement that benefits farmers and delivers
for consumers."

 

However, those free trade talks remain controversial, with critics warning
the government not to lower UK food standards in order to strike a deal.

 

This week a group of celebrities and chefs, including Jamie Oliver and Joe
Wicks, said post-Brexit trade deals should not open the floodgates to
lower-quality food, citing chlorine-washed chicken and hormone-injected
beef.

 

However, Ms Truss has previously insisted the UK will not allow US
chlorine-washed chicken to be stocked in supermarkets as a ban is already
written into law.

 

She said the UK will not compromise on environmental, animal welfare and
food standards in its quest for trade agreements.--BBC

 

 

 

'Chicken Licken' views will hold us back, says Bank economist

Pessimistic "Chicken Licken" views about the economy are in danger of
holding back the UK's post-lockdown economic recovery, according to Bank of
England economist Andy Haldane.

 

"Encouraging news about the present needs not to be drowned out by fears for
the future," he said in a speech.

 

He compared negative forecasters to the children's storybook character who
feared the sky would fall.

 

"Now is not the time for the economics of Chicken Licken," he said.

 

"My concern at present is that good news on the economy is being crowded out
by fears about the future," he added.

 

"Collective anxiety is as contagious, and could be as damaging to our
well-being, as this terrible disease."

 

Mr Haldane said the UK faced an "unholy trinity of risks from Covid,
unemployment and Brexit", but it was important not to overlook the economy's
quicker-than-expected recovery from lockdown.

 

"The economy has already recovered just under 90% of its earlier losses.
Having fallen precipitously by 20% in the second quarter, we expect UK GDP
to have risen by a vertiginous 20% in the third quarter - by some margin its
largest-ever rise," he said.

 

However, he admitted that the economic news had not all been positive, with
job losses continuing to mount, while the recovery in consumer spending had
not been matched among businesses.

 

Bank of England policymaker defends negative rates

Bank deputy governor warns against negative rates

His latest intervention comes amid growing speculation that the Bank of
England is contemplating cutting interest rates so much that they fall below
zero.

 

At present, the Bank's rate is at an all-time low of 0.1%.

 

Different members of the Bank's Monetary Policy Committee have put forward
both sides of the argument in recent days.

 

In his speech on Wednesday, Mr Haldane said none of the conditions that
would justify negative interest rates had been met.--BBC

 

 

 

 

Ocado overtakes Tesco as most valuable UK retailer

Online grocer Ocado has overtaken Tesco in terms of stock market value as
investors continue to bet on the firm.

 

Ocado is now valued at £21.7bn, more than Tesco's £21.1bn, despite having
only a fraction of the UK grocery market share.

 

Analysts said a rise in online food shopping, plus Ocado's new tie up with
Marks & Spencer, had encouraged investors.

 

However, question marks remain as to whether Ocado is over-valued.

 

According to analyst firm Kantar, Ocado has only 1.7% of the UK grocery
market, compared with Tesco's 26.8% share - which far outstrips its nearest
competitors, Sainsbury's and Asda.

 

'Charity' jibe

Ocado was launched 20 years ago but in most of those years struggled to make
money.

 

Ocado's share price, which had been healthy after striking a number of big
deals with overseas grocery businesses, began to climb quite quickly after
the UK coronavirus lockdown in March.

 

A former Tesco chief executive once described the firm as a "charity"
because of the losses it had racked up in its early years.

 

The business started to flourish in 2017 after cutting deals with US group
Kroger, Casino in France, Sobeys in Canada, and ICA Group in Sweden. It then
signed a partnership agreement with Coles in Australia.

 

Its stock market valuation has largely been driven by how investors view its
technology, which provides retailers with the infrastructure and software to
build their online service and compete with giants such as Amazon.

 

Market value

That valuation picked up speed after the coronavirus crisis really started
to bite in the UK and elsewhere in March as lockdown boosted demand for
online groceries.

 

Ocado's share price got a further boost recently after its switch to
delivering M&S food and after it reported a 50% jump in third quarter sales.

 

Ocado says M&S switchover 'successful' after rocky start

Ocado halts staff deliveries temporarily amid order backlog

This was despite some customers criticising Ocado when it launched its M&S
range, saying orders made weeks earlier had been cancelled at the last
minute.

 

The retailer also halted orders from its staff as it tried to clear an order
backlog.

 

Elephant

Despite its popularity with investors, Neil Wilson, chief market analyst at
Markets.com, questioned its market valuation.

 

"Ocado holds enormous promise but whether it can deliver is quite another
matter, the cash burn remains and the payback from all these overseas deals
is taking a very long time," he said.

 

One of the reasons for Ocado's valuation is the expected revenue from its
overseas deals, but these "have been slow to materialise", he said.

 

While Ocado's share price "has rocketed this year thanks to the boom in
online retail", one of the problems for Ocado is that "setting up fulfilment
centres costs a lot and the returns are slow," Mr Wilson said.

 

He added that "investors put an enormous premium on growth so are prepared
to pay a lot for any company that has a strong growth profile."

 

Julie Palmer, partner at Begbies Traynor, said the coronavirus pandemic had
aided the firm: "Where there is crisis, there is opportunity. These words
have never been truer for logistics businesses at the moment, which is one
of the reasons that Ocado appeals to investors."

 

However, she said the challenge for the business is now to retain the growth
it has seen since the Covid-19 outbreak.

 

"There is an elephant in the room with Amazon, which could strike this
sector hard with innovation through technology at any point," she said.

 

"This is a fact that must play on the mind of chief executive, Tim Steiner,
and should make sure that he doesn't become complacent," Ms Palmer added.

 

Amazon, which launched an online supermarket service in the UK in 2016, has
been making further moves into selling groceries.

 

These include a partnership with Morrisons, which said on Tuesday it would
be taking on 1,000 permanent staff for its services on Amazon.--BBC

 

 

 

 

William Hill agrees $2.9bn takeover by Caesars Palace-owner

Caesars Entertainment, the Las Vegas casino-owner, has struck a £2.9bn deal
to take over UK betting firm William Hill.

 

The boards of the US firm and William Hill agreed a cash offer of 272p a
share subject to shareholders voting in favour.

 

US private equity firm Apollo had also made a bid to take over William Hill.

 

But Caesars said that if the UK company chose Apollo, it would jeopardise a
joint venture between them.

 

Caesars owns a 20% stake in William Hill's US operations, which also have
exclusive rights to operate sports betting under the Caesars brand.

 

The US firm, which owns Caesar's Palace in Las Vegas, is particularly
interested in William Hill's US bookmaking business which currently has 170
retail sites in 13 different states.

 

In August William Hill said it would not be reopening 119 of its UK High
Street betting shops after the coronavirus shutdown, saying it did not
expect customers to return in the numbers seen before the pandemic.

 

William Hill said its directors would "unanimously and unconditionally"
recommend that shareholders accept the deal.

 

The Caesars Palace owner intends to find other owners for William Hill's
non-US businesses, including its more than 1,400 UK betting shops.

 

It said it would integrate the US business into Caesars with minimal job
cuts.

 

The agreement comes soon after William Hill said it was inclined to
recommend Caesars' offer.

 

Roger Devlin, chairman of William Hill, said: "The William Hill board
believes this is the best option for William Hill at an attractive price for
shareholders."

 

Caesars chief executive Tom Reeg said: "The opportunity to combine our land
based-casinos, sports betting and online gaming in the US is a truly
exciting prospect."--BBC

 

 

 

 

Boohoo profit soars despite factory conditions row

Fast-fashion brand Boohoo's first-half profit has risen 51%, despite a storm
over pay and working conditions for those making its clothes.

 

Last week, a review of Boohoo's supply chain identified "many failings"
after concerns were raised about its suppliers in Leicester.

 

The online retailer said it was taking steps to make "substantive,
long-lasting and meaningful change".

 

It also raised its prediction for this year's income.

 

"Group revenue growth for the year to 28 February 2021 is expected to be
28-32%, up from approximately 25% as previously guided," it said in its
interim results statement.

 

Pre-tax profits surged to £68.1m in the six months to 31 August, up from
£45.2m a year earlier.

 

During that time, the company made a number of acquisitions, adding Oasis,
Warehouse and Pretty Little Thing to its portfolio of brands, which include
the more upmarket Karen Millen and Coast.

 

Active customer numbers in the last 12 months went up by 34% to 17.4
million, with an "exceptional increase" during lockdown.

 

Boohoo: Five things you may not know about the fashion firm

Despite the positive outlook, Boohoo said it was "prudent to continue to
plan for a period of economic uncertainty in the second half of the
financial year, including possible reduced consumer spending".

 

"It is also prudent to plan for return rates returning to normal levels," it
added.

 

Prospects undented

Boohoo commissioned the independent review by barrister Alison Levitt after
allegations that factory workers had been exploited during the coronavirus
lockdown.

 

Ms Levitt found some workers in its supply chain had not always been
properly compensated for their work and that many were not fully aware of
their rights and their obligations.

 

She said Boohoo had "capitalised on the commercial opportunities offered by
lockdown", but took no responsibility for the consequences for those making
the clothes they sold.

 

The review also found senior directors at Boohoo knew about "serious issues"
over how workers were treated months before they came to light.

 

Richard Hunter, head of markets at Interactive Investor, said the "furore"
surrounding the company's Leicester supply chain had done little to harm its
profits or prospects.

 

"This will, of course, come at a cost and the possibility of wider
investigations cannot be ruled out at the moment. However, any reputational
damage caused by the allegations has not filtered through to a very strong
set of numbers."

 

He added: "For the moment, the stellar growth continues for Boohoo, as does
a share price which has fully recouped the declines of July to stand up 31%
in the year to date and ahead by 48% over the last year."--BBC

 

 

Govt Clears Emirates to Resume Flight Operations in Nigeria

Following an agreement between the United Arabs Emirates (UAE), and the
Nigerian government, the Minister of Aviation, Senator Hadi Sirika, has
announced plan to lift the ban placed on Emirates Airlines from operating
into and out of the country.

 

According to Sirika, the commencement of the airline's operations would,
however, depend on the commencement of visa issuance to Nigerians by the
UAE.

 

"UAE has written to state that they agree to issue visas to Nigerians,
consequently decision has been reached to allow Emirates to fly into
Nigeria. Commencement of the Visa issuance is condition precedent. Please
bear with this unusual situation," Sirika said.

 

The minister said he appreciated the understanding of all those who have
been negatively affected by the recent policy decisions, which barred some
airlines from operating into the country when Nigeria reopened its airspace
to international flights.

 

The Director, Public Affairs, Ministry of Aviation, Mr. James Odaudu,
explained in a statement issued yesterday that the decisions were taken to
protect the interests of the nation and its citizens who deserve to be
treated with respect and dignity - the same way Nigeria treats other
nationals.

 

Emirates Airlines was initially given approval to operate into the country,
but the approval was withdrawn following the inability of Nigerians to
obtain/use valid tourist visas to enter the UAE.

 

Meanwhile, South Africa has also lifted ban on air travel from travellers
from African countries.

 

President of South Africa, Mr. Cyril Ramaphosa said the ban was lifted to
facilitate free movements of people, goods and services from South Africa
and the African continent, noting that travellers from the neighbouring
countries are allowed to visit the country.

 

"Travellers from all African countries are allowed and must possess relevant
travel documents, and will also be screened for COVID-19 symptoms.

 

"To allow ease of travel from the African countries, 18 borders will be
opened. 35 border posts will continue to offer restricted services due to
insufficient capacity for screening, testing and quarantine. Travellers who
present themselves at borders, which are unable to accommodate them will be
directed to the currently operational border posts for processing," the
President said in an address.

 

The President said three airports would be opened and operational for
international air travel.

 

These airports are OR Tambo International (in Johannesburg, Gauteng), Cape
Town International (in Cape Town, Western Cape) and King Shaka International
in (Durban, KwaZulu-Natal).-This Day.

 

 

 

Fitch Upgrades Nigeria's Outlook to 'Stable'

Fitch, a global credit rating agency, has upgraded the outlook on Nigeria's
long-term foreign-currency issuer default rating (IDR) to 'stable' from
negative and affirmed the IDR at 'B'.

 

The outlook released Wednesday showed a decrease in the level of uncertainty
surrounding the impact of the global pandemic shock on the Nigerian economy.

 

Fitch said the 'B' rating reflects weak fiscal revenues, comparatively low
governance, and development indicators, high dependence on hydrocarbons, and
a track record of subdued growth and high inflation.

 

"These rating weaknesses are balanced against the large size of Nigeria's
economy, low general government debt relative to GDP, small foreign currency
indebtedness of the sovereign and a comparatively developed financial system
with a deep domestic debt market," the report read.

 

Rated entities in a number of sectors, including financial and non-financial
corporations, sovereigns, and insurance companies, are generally assigned
issuer default ratings (IDRs). IDRs are based on an entity's relative
vulnerability to default on financial obligations.

 

The 'B' ratings (highly speculative) indicate that material default risk is
present, but a limited margin of safety remains - financial commitments are
currently being met; however, capacity for continued payment is vulnerable
to deterioration in the business and economic environment.

 

Fitch however opined that foreign currency restrictions by the Central Bank
of Nigeria (CBN) could "damage investor confidence" and possibly lead to
Nigeria's exclusion from benchmark equity indices, durably impeding a return
of foreign inflows, which would place the onus of rebuilding reserves on
sovereign external borrowing amid continued current account deficits.

 

Fitch said it expects the government to cover most of its funding needs in
2020-2022 domestically, supported by ample liquidity in the non-banking
financial system as highlighted by the negative real rates on local currency
debt.

 

"The authorities are also likely to seek to increase the share of external
borrowing, mostly on concessional terms, although slow progress on reforms
might hinder further official creditor support," the agency added.-Vanguard.

 

 

 

 

Madaraka Express Resumes Full Service

All is set for the resumption of a second Nairobi-Mombasa passenger train,
with the first locomotive expected to leave the capital city on October 1 at
2.15pm.

 

In a notice, Madaraka Express operator Afristar said standard gauge railway
(SGR) passenger train services will resume following the lifting of partial
transport restrictions in Nairobi and Mombasa by President Uhuru Kenyatta.

 

The firm released a new schedule for the trains that shuttle between the two
counties.

 

KR has been operating two passenger trains between Nairobi and Mombasa, but
from Thursday, it will operate four.

 

SGR passenger services resumed operations in July, a week after President
Kenyatta relaxed measures to contain the coronavirus pandemic.

 

Afristar will now have trains leaving Nairobi and Mombasa at the same time
in the morning and two other trains leaving in the afternoon.

 

Morning trains from the two cities will depart at 8.00am, with one train
departing from the Nairobi terminus for Mombasa and vice versa.

 

Thereafter, two other trains will depart Mombasa and Nairobi at 2.15pm.

 

The train services will be operating under strict coronavirus protocols.

 

Transport Cabinet Secretary James Macharia said the SGR will operate at 50
per cent capacity, with an extra coach for isolation.

 

To facilitate the smooth resumption of services, Afristar has deployed 10
coaches, including eight economy and two first-class coaches.

 

This is in line with Mr Macharia's statement that 10 coaches should be
provided to ferry close to 600 passengers on a one-way trip.

 

Additionally, all customer-facing employees must wear masks and gloves.

 

As of this morning, all passenger service staff serving customers have
tested negative for Covid-19.

 

SGR passenger services were suspended back in April after President Kenyatta
announced the cessation of movement into and out of the Nairobi Metropolitan
Area, Mombasa County and Mandera County.

 

On Monday, the Head of State announced an extension of the daily
dusk-to-dawn curfew for an additional 60 days.

 

He, however, adjusted the curfew time from 9pm to 11pm with the new
directives taking effect on Tuesday, September 29.-Nation.

 

 

 

Ethiopia Readies to Launch Second Satellite, Plans for 10 More By 2035

Ethiopia is in the final stages of launching its second remote-sensing
satellite into space, with the help of China, as the country seeks to
advance its space science development.

 

In an exclusive interview with The EastAfrican, the Director-General of the
Ethiopian Space Science and Technology Institute (ESSTI), Dr Solomon Belay,
said that the country's second satellite will be launched on December 20,
2020, from China's Taiyuan Spacecraft Launch Site.

 

Named ET-SMART-RSS, the second earth observation nano-satellite was designed
by Ethiopian engineers in collaboration with China's Smart Satellite
Technology Corporation under an initiative co-funded by both Ethiopia and
China.

 

The satellite, according to Dr Solomon, has improved resolution features
that would enable it to capture and send high-quality images to its command
centre in Addis Ababa.

 

"The major mission of the second satellite is on flood and disaster
prediction," he said, adding that "agriculture and environment are also its
secondary missions."

 

 

Further, the satellite is expected to collect data in areas in Ethiopia not
covered by the first one.

 

"The first satellite couldn't cover all territories of Ethiopia but the
second satellite will fill these gaps," Dr Solomon said.

 

More launch plans

 

The first satellite, named ETRSS-1, was launched on December 20, 2019. It is
used for weather forecast, environment, and crop monitoring.

 

According to the officials, the data collected from space is in high demand
and is being used in universities and research centres.

 

Ethiopia is among several African countries that have built and launched
satellites to advance economic development and scientific innovation in line
with the African Union policy on space development adopted in 2017.

 

 

The AU's African space policy seeks the adoption of a framework to use
satellite communication for economic progress and natural resource
management on the continent.

 

Countries that have rolled out space programmes include South Africa, Egypt,
Nigeria, Ghana, Algeria, Morocco, and Kenya.

 

"During the last six months, we have delivered real satellite images to a
number of sectors among others to the agriculture sector, to universities
and to research centres," Dr Solomon said.

 

"We are also exchanging our satellite data with many other countries
especially in Asia."

 

Ethiopia plans to launch more satellites into space, including a
communication satellite next year.

 

"The demand for satellite data is still very high and to meet the high
national demands, we will launch more satellites," the Ethiopian Space
Science and Technology Institute director-general said.

 

 

"In the next 10 years, we will launch seven satellites including a
communication satellite next year. We are planning to launch 10 more
satellites in the next 15 years."

 

Assembly hub

 

Ethiopia also plans to set up a satellite assembly and manufacturing plant
in the country that would also serve the region.

 

"Once Ethiopia's satellite assembling and manufacturing centre is completed,
East African countries won't have to send their satellites to Japan, China
or Europe. They can come to Ethiopia and test and assemble their satellites
here," Dr Solomon said.

 

"That would further pave the way for regional collaboration and
integration," he added.

 

With its Entoto Observatory and Research Centre, the only of its kind in
Eastern Africa, Ethiopia has been collaborating with astronomers from around
the world as well as training students from the region.

 

The Entoto observatory centre has two one-metre telescopes and a
spectrograph to measure wavelengths of electromagnetic radiation.

 

It is from this site that Ethiopian officials gathered last year to watch a
live broadcast of the first satellite's launch from a space station in
China.

 

"We have good collaboration with our neighbors including Kenya, Sudan,
Rwanda and other African countries and further with Asian and European
countries," Dr Solomon said.

 

"Our collaboration with Kenya starts from the exchange of training and
expertise, and supervising students for the examination of PhDs," said the
professor of astrophysics, adding that the Office of Astronomy for
Development office in Ethiopia hosted by ESSTI "encourages collaborations
with universities, and research training programmes on space astronomy."

 

Data sharing

 

ESSTI has also made data collected from the Ethiopian satellites accessible.

 

"We have developed the platform and any country or research teams can
request us for satellite data online. African countries can be beneficiaries
of this system," he said.

 

ESSTI has previously trained students from Kenya, Rwanda, Uganda, Sudan, and
Tanzania.

 

While calling on governments in Africa to invest in space science, Dr
Solomon said the exploration of space is not a luxury, but one that will
make a difference in development, industry, technology, competency, job and
wealth creation.

 

"I urge all African governments, non-governmental organisations, and the
private sector to get involved in the space industry and activities."

 

He also stressed on more international collaboration and commitment to
support Africa gain expertise in space science technology in order for the
countries to explore their own resources.-East African.

 

 

Mozambique: Renewable Energy Auctions Launched

Maputo — The Mozambican Minister of Mineral Resources and Energy, Max
Tonela, on Wednesday said that the Promotion of Renewable Energy Auctions
(PROLER) will step up diversification of the energy matrix and contribute to
greater access to electricity by consumers.

 

Tonela was speaking in Maputo at the launch of PROLER, a mechanism for the
public bidding for projects in the area which, he claimed, will contribute
to a greater capacity for generating renewable energies at low cost to the
benefit of the final consumer.

 

The renewable energy auctions are a new model for public tenders, and for
the acquisition of licences to produce electricity based on renewable
sources. It is intended to select, in a transparent and competitive way,
potential strategic development partners.

 

"This model is a new paradigm in the attribution of licences for developing
new electricity generation infrastructures", said Tonela. "It prioritises
projects with lower costs and better guarantees of implementation".

 

 

At the same ceremony, sale and purchase agreements were signed between the
publicly owned electricity company EDM, and the private companies involved
in this business, in three power stations in northern Mozambique - two at
Cuamba in Niassa province, with a peak production capacity of 18 megawatts
and 36 megawatts, and one at Mecufi, in the neighbouring province of Cabo
Delgado, with a peak capacity of 26 megawatts.

 

The agreements were signed by EDM chairperson Marcelino Alberto and
representatives of the three companies.

 

A financing agreement was also signed between the government, represented by
Finance Minister Adriano Maleiane, and the European Union, represented by
the French charge d'affaires, Samuel Richard, aimed at promoting studies,
guarantees, environmental measures, and electrification of the areas around
renewable energy projects.

 

Richard said the Wednesday event marks a turning point in Mozambique's
energy policy. "Developing the country's energy capacity at a reduced cost
through obtaining the most competitive tariff possible is at the centre of
the PROLER approach", he declared.

 

 

 

Tokyo stock exchange trading halted for the day due to technical problem

Trading on the Tokyo Stock Exchange was suspended on Thursday because of a
problem in the system for relaying market information.

 

The Tokyo Stock Exchange said trading would not resume for the rest of the
day. It was unclear when it would be resolved and the system would be
operating again.

 

Details on the Tokyo trading problems were not immediately available.
Japan’s nationally circulated Asahi newspaper, without citing sources, said
the cause was likely a mechanical failure.

 

The Nikkei fell 1.5% on Wednesday, its biggest decline in two months, as an
acrimonious US presidential debate between Donald Trump and Joe Biden
increased concerns about an indecisive outcome from the election in
November.

 

“The timing is really just bad,” Takashi Hiroki, chief strategist at Monex
in Tokyo, said about the trading halt, adding many market participants were
hoping to buy back their stocks or increase their holdings following an
overnight rise on Wall Street.

 

“As expected, US stocks were unaffected by the US presidential election, but
gained instead on stimulus hopes. And that could have prompted a surge in
stocks’ buybacks in early Japanese market. But the market was robbed of that
chance.”

 

The Tokyo Stock Exchange is the world’s third largest bourse after the New
York Stock Exchange and Nasdaq, with market capitalisation of nearly $6
trillion.

 

The TSE has been prone to system troubles in the past and was notorious for
sluggish trading, but problems have been relatively rare since it expanded
its capability with the introduction of a new system in 2010.

 

The TSE had suspended trading in October 2018 due to problems with its
trading system.

 

 

The exchange promised to investigate, conduct malfunction tests and change
the system to ensure that a flood of orders would not cause the entire
system to stop working. Several top executives of the exchange were
penalised.

 

The problem comes weeks after the New Zealand stock exchange was hit by a
series of cyber attacks.-Associated Press

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


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.

 


 

 


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