Major International Business Headlines Brief::: 08 October 2020

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Major International Business Headlines Brief::: 08 October 2020

 


 

 


 <http://www.finsec.co.zw/> 

 


 

 


 

 

ü  Government to pay £2m to settle coronavirus testing case

ü  Huawei: 'Clear evidence of collusion' with Chinese Communist Party

ü  Four years and counting: The epic China-US takeover

ü  Extreme poverty set for first rise since 1998, World Bank warns

ü  Billionaires see fortunes rise by 27% during the pandemic

ü  Scathing congressional report suggests big trouble for Big Tech if Biden wins

ü  Exclusive: Chevron workers face demands to reapply for jobs under global restructuring - sources

ü  Musk says Tesla to use new batteries, tech at Berlin factory; flags production risk

ü  Keeping it clean: U.S. ethanol producers invest in sanitizer for long haul

ü  Chevron tops Exxon Mobil market cap for first time

ü  Global Markets: Asian shares at one-month highs on renewed U.S. stimulus hopes

ü  JPMorgan pledges $30 billion to address racial wealth gap

ü  Rwanda: SMS Based Learning Debuts in the Country

ü  Nigeria: Cabinet Approves $3.02 Billion for Port Harcourt-Maiduguri Rail Line

ü  Sudan: No Respite for Sudan Bread and Fuel Shortages

ü  Tanzania: Vodacom Targets 5g Technology, As It Marks 20 Years in Tanzania

ü  Namibia: Air Namibia to Resist Liquidation

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Government to pay £2m to settle coronavirus testing case

The UK has agreed to settle a lawsuit over how it selected an IT contract for coronavirus testing at its Lighthouse labs.

 

The BBC understands that the settlement will cost the government up to £2m.

 

British company Diagnostics AI claimed it lost out to a European rival UgenTec despite spotting some positive coronavirus cases its rival missed.

 

It sued the government over the decision, claiming the selection process was "unfair and unlawful".

 

Lighthouse labs are a UK-wide network of specialist coronavirus laboratories managed by the government and run by private firms. When the labs were set up, companies pitched to analyse the test results.

 

The dispute was due to be played out in court. It would have meant a public examination of the accuracy and speed of the testing system, at a time when it has come under serious criticism.

 

But the government has decided to settle the case and will pay Diagnostics AI compensation and most of its legal fees.

 

However, despite agreeing to the payout, the government has refuted the claims made by Diagnostics AI, saying they are "inaccurate".

 

"The tests are reliable and effective, the laboratories that undertake them have been reviewed and assessed by experts and the percentage of false negatives or positives is tiny," said a Department of Health and Social Care spokesperson.

 

"This was a commercial dispute over a software contract where a number of factors were considered before it was awarded, which is still subject to final agreement over costs."

 

As the contract was worth more than £1m, the BBC understands the settlement including legal costs could amount to around £2m.

 

Dispute over contract decision

Swabs are taken from people at testing sites or home tests and treated with a chemical process that produces a graph. The software is used to determine whether the graphs show the sample was positive or negative for coronavirus.

 

Diagnostics AI claimed UgenTec's analysis of a trial run of 2,000 samples was flawed. In some cases, it claimed UgenTec found negative coronavirus results, when the results were actually positive or inconclusive.

 

"The system that they ultimately went with and decided to pay for missed around 50 out of 800 positive [results], so that's around one in 15, or so, one in 16 - to be precise - positives," Diagnostics AI's chief executive Aron Cohen told the BBC.

 

"Obviously when that translates to hundreds of thousands of samples a day, that's potentially thousands of missed positives going out every day. So that was really worrying for us."

 

UgenTec in return claimed that no patients were affected at all as it was a trial run.

 

"We provide crucial covid interpretation services to the Lighthouse Labs to help them manage the vast amounts of data they generate. These claims are inaccurate and misleading," UgenTec's chief executive Steven Verhoeven told the BBC.

 

"None of these samples refer to actual results given to patients or the public and to imply any public health impact is wrong. Live tests were not being supported by our software at the time which was in the process of being implemented. As illustrated by independent tests, we have every confidence in our software and the services we provide."

 

'A commercial dispute'

Two non-profit companies owned and funded by the government were also sued by Diagnostics AI - namely UK Biocentre and Medicines Delivery Catapult (MDC), which ran the process to decide which company to use.

 

Court papers show that between 31 March and 14 April, Diagnostics AI repeatedly requested information about exactly what services were required and how their bid would be evaluated.

 

Diagnostics AI say it never received the information it asked for. This is refuted by UK Biocentre, which says both providers were given the same information.

 

Local authorities are permitted to purchase services without engaging in a competitive process if there is a significant risk to life

When the two bids were being considered in early April, the UK was facing what Boris Johnson had called a "moment of national emergency".

 

In such urgent circumstances, the law does make provision for the government to buy services without a competitive process, if certain conditions are met.

 

However, it is understood that both Diagnostics AI and Ugentec had been recommended to UK Biocentre, and so a decision was made to evaluate both offers.

 

Diagnostics AI says this process was unfair and flawed, but UK Biocentre insists it was fair to both bidders.

 

A spokesperson for UK Biocentre said: "The allegations are groundless; this was a commercial dispute. The software in question is being used widely in the Lighthouse Laboratories, in some NHS laboratories and abroad.

 

"External quality assurance has confirmed that the polymerase chain reaction (PCR) testing in the Lighthouse Laboratories, of which the automated diagnostic software forms part, is performing well."

 

A spokesperson for MDC also provided the BBC with a statement: "The full results of evaluation identified UgenTec as a safe and quality provider, able to deliver in high volumes, and with a comprehensive support system in place. It has performed superbly over the past six months, analysing over eight million test results for the nation. The litigation was purely a commercial dispute."

 

The BBC understands that investigations were carried out into the claims made by Diagnostics AI, but concluded that concerns over the safety of UgenTec's software were unsubstantiated.

 

However Mr Cohen disagrees: "The government is paying out a lot of money. And they're paying this out, you know, to avoid it at least in part, to avoid having to have these issues aired in court, and to have discussions over the accuracy of the testing."--BBC

 

 

 

Huawei: 'Clear evidence of collusion' with Chinese Communist Party

The inquiry focused on Huawei's telecoms kit rather than its consumer handset business

There is "clear evidence of collusion" between Huawei and the "Chinese Communist Party apparatus", a parliamentary inquiry has concluded.

 

And the MPs say the government may need to bring forward a deadline set for the Chinese firm's 5G kit to be removed from the UK's mobile networks.

 

Huawei has responded by saying "this report lacks credibility as it is built on opinion rather than fact".

 

But the latest accusation poses a further challenge to its business.

 

Although the company's options in the UK are now limited, it is still trying to sell its 5G telecoms infrastructure to other parts of Europe and beyond, having invested heavily in the technology.

 

"We're sure people will see through these accusations of collusion and remember instead what Huawei has delivered for Britain over the past 20 years," a spokesman for the company said.

 

'Communist Party links'

The House of Commons defence committee based its findings on the testimony of academics, cyber-security experts and telecom industry insiders, among others. These included executives from Huawei itself, as well as some long-term critics of the company.

 

Its report cites a venture capitalist who claimed the Chinese government "had financed the growth of Huawei with some $75bn [£57bn] over the past three years", which he said had allowed it to sell its hardware at a "ridiculously low price point".

 

And it highlights a claim made by a researcher who specialises in corporate irregularities within China, who alleged that Huawei had "engaged in a variety of intelligence, security, and intellectual property activities" despite its repeated denials.

 

"It is clear that Huawei is strongly linked to the Chinese state and the Chinese Communist Party, despite its statements to the contrary," the committee concludes.

 

"This is evidenced by its ownership model and the subsidies it has received."

 

Nuclear industry

The report warns that the West should not "succumb to ill-informed anti-China hysteria", but suggests some policy changes may be necessary.

 

At present, the government has said mobile networks must not buy new Huawei 5G equipment after the end of this year, and then must remove any they have installed by 2027.

 

But the committee says ministers should consider bringing the latter deadline forward to 2025 if relations with China deteriorate or pressure from the US and other allies makes it necessary.

 

The MPs acknowledge being told by BT and Vodafone that such a move could cause signal blackouts in parts of the country. But they say operators could be compensated to minimise delays.

 

They also say Beijing had exerted pressure through "covert and overt threats" to keep Huawei in the UK's 5G network.

 

These are said to have included a suggestion it might block Chinese investment in the UK's nuclear industry.

 

The committee says that if further threats follow, the government should "carefully consider China's future presence in critical sectors of the economy".

 

And it recommends the forthcoming National Security and Investment Bill gives ministers the power to ban investments they deem risky.

 

More work is needed to work with allies to ensure there are other suppliers of telecoms equipment, the report adds.

 

And it calls on the government to avoid any further delay in introducing a telecoms bill to end what it describes as the current situation of "commercial concerns trumping national security".

 

Encrypted data

The MPs reject claims that Huawei's continued presence in the UK affects the country's ability to share sensitive information with partners.

 

Last year, one US congressman suggested the US and UK might have to resort to using paper instead of electronic-based communications.

 

But the committee says it is "content" that Huawei is sufficiently distanced from sensitive defence and national security sites, and in any case it would not be able to decipher encrypted data sent via its equipment.

 

It does, however, urge GCHQ to continue its work with the firm at the Huawei Cyber Security Evaluation Centre (HCSEC), where the firm's equipment is checked for flaws.

 

Huawei funds the work done there by government experts and has indicated it is willing to continue doing so for the foreseeable future.

 

The MPs say the government should now consider assessing equipment from "other vendors in a similar fashion".

 

They also back proposals to form a D10 group of democracies to provide alternatives to Chinese technology.

 

Little detail has been provided about what this might actually look like, and the committee calls on the government to consult allies to set out exactly what it would entail.--BBC

 

 

 

Four years and counting: The epic China-US takeover

When China Oceanwide first agreed to buy US-based Genworth Financial, Barack Obama was still US president.

 

More than 1,400 days later, the $2.7bn (£2.1bn) deal has still not gone ahead, while the deadline has been extended 16 times.

 

In the meantime, Donald Trump became US president and relations between the US and China have soured considerably.

 

But the two companies are confident the deal will be signed, even though most takeovers take only six to 12 months.

 

The acquisition started in October 2016 during a spate of Chinese firms aggressively buying American assets.

 

"The Genworth saga is unique not only given the length of time that has elapsed since the two sides agreed to the deal, but also because of the twists and turns that have occurred along the way," said Mark Palmer, an analyst at investment firm BTIG.

 

Challenges that Genworth, an insurance firm, and Oceanwide, an investment company, have faced include gaining the approval of various regulators including those from several American states in which Genworth operates.

 

Another complicating factor is that many US-China deals need to be approved by the US Committee on Foreign Investment in the United States (CFIUS).

 

Covid complications

More recently there have been issues around China Oceanwide's efforts to secure financing for the deal, complicated by in-person discussions having to be delayed due to Covid-19 travel restrictions.

 

"We have overcome many hurdles during the past four years, demonstrating time and again our unwavering commitment to this transaction," said Lu Zhiqiang, chairman of Oceanwide.

 

Mergers and acquisitions (M&A) experts say a deal of this size should take a year on average.

 

But they can get complicated if either company is publicly-listed or strategically important for an economy.

 

China Oceanwide is a private firm with more than 10,000 employees globally.

 

Genworth Financial is a Fortune 500 company and listed on the New York Stock Exchange while China Oceanwide is a private firm with more than 10,000 employees globally.

 

"From my experience, any deal that takes longer than the average time has a low probability of success," said Jacob Doo, Chief Investment Officer at Envysion Wealth Management.

 

"As it is, the cost for more than 1,400 days is substantial and will continue to escalate, as I doubt that any approval will come before the US election."

 

The idea behind the deal was to give China Oceanwide a platform for global expansion and expertise it could bring back home.

 

This could now be a problem given the Trump administration's crackdown on Chinese firms doing business in the US.

 

"I recognize that this has been an extraordinarily long road to travel for our shareholders, regulators, employees and other stakeholders, and we greatly appreciate their patience," Tom McInerney, Genworth chief executive added.

 

Under the latest extension, Oceanwide has until the end of November to close the deal.--BBC

 

 

 

Extreme poverty set for first rise since 1998, World Bank warns

Extreme poverty is set to rise this year for the first time in more than two decades, with coronavirus expected to push up to 115 million people into that category, the World Bank has said.

 

The pandemic is compounding the forces of conflict and climate change, which were already slowing poverty reduction, the bank said.

 

By 2021, this could rise to as many as 150 million, it added.

 

Extreme poverty is defined as living on less than $1.90 (£1.50) a day.

 

The projected increase would be the first since 1998, when the Asian financial crisis shook the global economy.

 

Global economy 'will suffer for years to come'

Before the pandemic struck, the extreme poverty rate was expected to drop to 7.9% in 2020.

 

But now it is likely to affect between 9.1% and 9.4% of the world's population this year, according to the bank's biennial Poverty and Shared Prosperity Report.

 

At the other end of the scale, billionaires have seen their fortunes hit record highs during the pandemic, with top executives from technology and industry earning the most.

 

The world's richest saw their wealth climb 27.5% to $10.2tn (£7.9tn) from April to July this year, according to a report from Swiss bank UBS.

 

'Serious setback'

Since 2013, the World Bank has been working towards the target of having no more than 3% of the world's population living on just $1.90 a day by 2030.

 

However, it now says that goal will be beyond reach without "swift, significant and substantial policy action".

 

The World Bank report found that many of the new poor would be in countries that already have high poverty rates, with 82% of the total expected in what are classed as middle-income countries.

 

The bank said progress in reducing global poverty was already slowing even before the Covid-19 crisis.

 

Between 2015 and 2017, 52 million people rose out of poverty, but the rate of reduction over that period was less than half a percentage point a year.

 

This was less rapid than in the years between 1990 and 2015, when global poverty had dropped at the rate of about one percentage point a year.

 

"The pandemic and global recession may cause over 1.4% of the world's population to fall into extreme poverty," said World Bank Group president David Malpass.

 

He said that to reverse this "serious setback", countries would need to prepare for a different economy post-Covid, by allowing capital, labour, skills and innovation to move into new businesses and sectors.

 

However, he pledged that World Bank support would be available to developing countries "as they work toward a sustainable and inclusive recovery".

 

The Washington-based lender is offering grants and low-interest loans worth $160bn to help more than 100 poorer countries tackle the crisis.--BBC

 

 

 

 

Billionaires see fortunes rise by 27% during the pandemic

Billionaires have seen their fortunes hit record highs during the pandemic, with top executives from technology and industry earning the most.

 

The world's richest saw their wealth climb 27.5% to $10.2trn (£7.9trn) from April to July this year, according to a report from Swiss bank UBS.

 

That was up from the previous peak of $8.9trn at the end of 2017 and largely due to rising global share prices.

 

UBS said billionaires had done "extremely well" in the Covid crisis.

 

It also said the number of billionaires had hit a new high of 2,189, up from 2,158 in 2017.

 

It comes as a World Bank report on Wednesday showed extreme poverty is set to rise this year for the first time in more than two decades due to the pandemic.

 

Rising demand

Among the billionaires, the biggest winners this year have been industrialists, whose wealth rose a staggering 44% in the three months to July.

 

"Industrials benefited disproportionately as markets priced in a significant economic recovery [after lockdowns around the world]," UBS said.

 

Tech billionaires have also had a good pandemic, seeing their wealth soar 41%. UBS said this was "due to the corona-induced demand for their goods and services" and social distancing accelerating "digital businesses [and] compressing several years' evolution into a few months".

 

Healthcare billionaires also benefited as the crisis put drug makers and medical device companies in the spotlight.

 

The rise in fortunes reflects the generally strong performance of global stock markets since late March, despite most countries continuing to suffer sharp recessions.

 

Amazon boss Jeff Bezos and Tesla founder Elon Musk - both multi-billionaires - saw their wealth hit new highs this summer thanks to growth in the price of their companies' stock.

 

Global change

In the last 11 years China's billionaires have increased their wealth by the biggest percentage, climbing 1,146% between 2009 and 2020, according to UBS.

 

By comparison, over the same period the wealth of British billionaires has risen by just 168%.

 

But the biggest accumulation of wealth remains in the US where American billionaires have $3.5trn, compared to China's $1.7trn.

 

The UK's wealthy have just $205bn, compared to Germany's $595bn and France's $443bn.

 

Donations

UBS said many billionaires had donated some of their wealth to help with the fight against Covid-19.

 

"Our research has identified 209 billionaires who have publicly committed a total equivalent to $7.2bn from March to June 2020," the report said.

 

"They have reacted quickly, in a way that's akin to disaster relief, providing unrestricted grants to allow grantees to decide how best to use funds."

 

But it revealed that UK billionaires donated less than those from other countries.

 

In the US, 98 billionaires donated $4.5bn, in China 12 billionaires gave $679m, and in Australia just two billionaires donated $324m. But in the UK, nine billionaires donated just $298m.--BBC

 

 

 

 

Scathing congressional report suggests big trouble for Big Tech if Biden wins

WASHINGTON (Reuters) - A scathing report detailing abuses of market power by four top technology companies suggests a tough road ahead of new rules and stricter enforcement for Big Tech should Democratic presidential candidate Joe Biden win the White House.

 

Antitrust experts and congressional aides said the 449-page report from the antitrust panel of the House Judiciary Committee, released on Tuesday, lays out a road map for the Democratic Party to put the brakes on the dominance of Alphabet Inc’s Google, Apple Inc, Amazon.com Inc and Facebook Inc.

 

With the Nov. 3 election approaching fast and a new Congress scheduled to be sworn in in January, action on the report’s recommendations this year is unlikely and no new legislative changes are imminent. However, the findings boost the chances for new laws in the future and will inform existing investigations against large technology companies by state attorneys general and agencies such as the Federal Trade Commission.

 

The report reflects the views of Democrats on the antitrust subcommittee in the Democratic-controlled House of Representatives. Republicans on the panel released two separate reports on the investigation.

 

U.S. Representative David Cicilline, chairman of the House antitrust panel, told Reuters in an interview on Wednesday he thinks a Biden administration would be receptive to the report. “He (Biden) has talked about how Big Tech platforms abuse their power,” said Cicilline, a Rhode Island Democrat. “He recognizes that this sort of economic concentration undermines democracy.”

 

Sarah Miller, executive director of the American Economic Liberties Project, a Washington-based group focused on monopoly power, said the report “lays out the Democratic Party’s position on tech platforms and how antitrust laws need to be refined and strengthened.”

 

“The report has done a lot of work to set up where and why a Biden administration should act and how it should prioritize the recommendations in the report,” she added. Miller is one of hundreds of members of the Biden campaign’s tech policy committee.

 

 

William Kovacic, a former chair of the Federal Trade Commission, warned that the companies will “pull out all the stops” in lobbying against the changes.

 

Earlier this month, Reuters reported how large tech companies including Amazon were cozying up to the Biden campaign with cash and connections.

 

Biden has previously said antitrust enforcement has not been strong and that tech firms deserve a hard look from the federal agencies that oversee competition. He has stayed away from calling for the breakup of large technology companies, saying it would be premature to do so without a formal investigation.

 

The House report on Tuesday broadly recommended that companies should not both control and compete in related businesses, but stopped short of naming a specific company. Anti-monopoly experts and congressional aides said the report, which details Big Tech’s abuses, has the potential to influence the thinking of Biden on the issue.

 

A spokesman for the Biden campaign did not immediately comment.

 

The antitrust panel will take up the majority report after the October recess for formal adoption and will have a vote on it, counsels for the committee said. The next step will be coming up with legislation to put the report’s recommendations into action.

 

House panel chairman Cicilline also said in the interview he expects legislation tackling Big Tech’s market power to be introduced in the current Congress and more bills to be introduced next year.

 

 

 

 

Exclusive: Chevron workers face demands to reapply for jobs under global restructuring - sources

HOUSTON/NEW YORK (Reuters) - Chevron Corp employees worldwide are being asked to reapply for positions as part of a cost-cutting program expected to eliminate up to 15% of its workforce, people familiar with the matter said.

 

The No. 2 U.S. oil producer has begun taking steps to streamline its organization this year to reduce costs and revive declining profits. Oil companies have posted huge losses on asset writedowns and slashed spending as economic downturns caused by the COVID-19 pandemic undercut fuel demand.

 

Employees who are not chosen for jobs should know within weeks, Chief Executive Michael Wirth said in an interview on Monday. He did not discuss how cuts would be decided nor how many employees were asked to reapply for positions.

 

The company took a $1 billion charge to earnings earlier this year to cover severance pay for employees affected by the restructuring. Workers not chosen for new assignments would lose their jobs.

 

Chevron recently expanded its 45,000-person workforce by acquiring smaller oil and gas producer Noble Energy, which has about 2,200 workers. That $4.1 billion all-stock deal closed this week.

 

In Houston, about 700 employees will lose jobs starting Oct. 23, according to a notice Chevron sent to the state of Texas. Employees will receive enhanced severance benefits and two-months to leave the company, the letter said. Most of the people not chosen for new posts will depart by the end of the year, a spokeswoman said.

 

Decisions about Noble employees are likely in several weeks, Wirth said. Reductions are more likely where the two companies overlap, such as west Texas shale and administrative areas, Wirth said.

 

“Some areas like the Middle East or like Colorado where we don’t have much of an operating footprint, it’s unlikely there’s significant changes there in the near term,” Wirth said. “We’re working through the details on that.”

 

Royal Dutch Shell Plc last month said it plans to cut up to 9,000 jobs, or over 10% of its workforce. BP Plc this year also announced plans to cut around 10,000 jobs, as the two shift from oil and gas to lower-carbon energy sources.

 

 

 

Musk says Tesla to use new batteries, tech at Berlin factory; flags production risk

(Reuters) - Tesla Inc TSLA.O Chief Executive Elon Musk said on Wednesday the company will produce Model Y with a new structural battery design and technology at its Berlin factory next year and that could result in a "significant production risk".

 

The U.S. electric carmaker plans to manufacture a new version of its Model Y crossover vehicle, and possibly even battery cells at the site. Last month, Musk said that Tesla will use its Germany-based plant to demonstrate a radical overhaul of how its cars are built.

 

The company plans to start the production of Model Y at Gigafactory Berlin during the second half of 2021.

 

Tesla’s new battery cell - a larger cylindrical format called 4680 that can store more energy and is easier to make - is key to achieving the goal of cutting battery costs in half and ramping up battery production nearly 100-fold by 2030.

 

The company’s new structural battery pack requires the new 4680 battery cells in order to work.

 

Musk said on Wednesday that it will take about two years for Tesla factories in Fremont and Shanghai to embrace the new technology.

 

 

 

Keeping it clean: U.S. ethanol producers invest in sanitizer for long haul

NEW YORK (Reuters) - Red River Biorefinery in Grand Forks, North Dakota, came online in April, arguably the worst time for an ethanol facility to begin operating as the coronavirus pandemic sank fuel demand.

 

Instead of shutting like many ethanol facilities, the company switched focus from producing fuel ethanol to making high-grade alcohol for hand sanitizer, where demand surged during the pandemic as Americans scrambled to protect themselves against the coronavirus.

 

Red River and several other companies now view the hand sanitizer market as more than a temporary salve for weak fuel demand, making permanent investments in production of high-grade alcohol that meets standards for producing sanitizer.

 

In recent months Pacific Ethanol PEIX.O, Green Plains GPRE.O and Highwater Ethanol HEOL.PK have said they will boost capacity for high-grade alcohol.

 

“Our intent when we first went live was to be purely in the fuel market,” said Red River President Keshav Rajpal. “There’s been a huge shift in supply and demand instantaneously. When that happens, in our case margins compared to fuel ethanol are much higher in this space.”

 

Globally the hand sanitizer market was valued at $2.7 billion in 2019, with North America accounting for a third of the market’s revenue share, according to Grand View Research, a consultancy.

 

The flurry of announcements indicate some producers see more profitability in hand hygiene because of the pandemic than in transportation fuels. Corn-based fuel ethanol demand tends to track closely to gasoline consumption, as U.S. law requires it to be blended into the fuel.

 

As of January, U.S. fuel ethanol production capacity totaled 17.4 billion gallons per year, EIA said, up from 2019’s 16.9 billion gallons per year.

 

Fuel ethanol production nationwide has rebounded from the spring, hitting 923,000 barrels per day from 537,000 bpd in April, according to the Energy Information Administration. That was still 4% lower than the same time last year.

 

Red River is expanding its output for USP-grade alcohol, used for the sanitizer. The company, whose output has been just under a million gallons of high-grade ethanol per month, has added tank farm and loadout equipment.

 

U.S. Corn Belt ethanol margins ETH-CB-REF have recovered to 9 cents per gallon from April's low of -22 cents, but they remain half of year-ago levels, Refinitiv Eikon data showed.

 

Sacramento-based Pacific reported strong second quarter results, due to the favorable margins for high-grade alcohol, said Pacific Co-President Michael Kandris in an August earnings call.

 

High-quality alcohol is typically sold at fixed prices and volumes with longer contract commitments than ethanol, Kandris said, which improves margins.

 

 

 

Chevron tops Exxon Mobil market cap for first time

(Reuters) - Chevron’s market value leapfrogged that of Exxon Mobil for the first time on Wednesday during a week in which it closed a $4.1 billion, all-stock deal for Noble Energy, a smaller oil and gas producer.

 

Chevron’s market cap ended the day around $142 billion, topping Exxon Mobil’s $141.65 billion market value at the end of trade, according to Refinitiv data and Chevron SEC filings pertaining to the Nobel deal.

 

Shares in Chevron closed up 2.047% on Wednesday and Exxon Mobile rose just 0.3%.

 

Chevron’s finances are stronger and its shares have performed better than its larger rival. It has shifted away from costly megaprojects favored by oil majors, and moved sooner this year to cut costs amid the coronavirus-induced sharp drop in oil and gas prices.

 

Investors have shunned fossil fuel companies and the energy sector is the worst performing on the S&P 500 year to date. Chevron’s stock is down a lesser 38% year to date compared to a 52% decline at Exxon, which this year was removed from the Dow Jones Industrial Average, a position it held since the index was created.

 

Exxon’s weak earnings have forced it to borrow to finance its nearly $15 billion a year shareholder dividend and cover spending on new projects.

 

In part, Chevron’s finances have benefited from its faster divesting of unwanted assets. Exxon has struggled to unload unwanted oilfields despite promising to accelerate the sales in early 2019. Exxon officials have said they are reviewing all its operations for cuts, but have signaled that major savings will not come this year.

 

 

 

Global Markets: Asian shares at one-month highs on renewed U.S. stimulus hopes

SYDNEY (Reuters) - A gauge of Asian shares climbed to a one-month high on Thursday, as renewed hopes for more U.S. stimulus helped restore investor confidence with markets now pricing in a Democratic victory during elections in November.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3% for its fourth straight session of gains to a level not seen since early September.

 

Australia’s benchmark index jumped 1.1% to a one-month high helped by a larger-than-expected fiscal stimulus announced in federal budget on Tuesday night.

 

New Zealand shares rallied on expectations of further monetary policy easing after the country’s central bank said it was “actively considering” negative interest rates and a funding-for-lending programme.

 

Japan’s Nikkei added 0.5%.

 

Globally, risk assets have rallied since mid-March on a flood of central bank and government support for economies reeling from coronavirus-induced lockdowns world over. Expectations of more aggressive easing have further boosted sentiment.

 

“It’s another good day for risk and equities have powered up,” said Pepperstone strategist Chris Weston in Melbourne.

 

“Some talk of fiscal has been in play again, but this has become tiresome and the markets don’t need a reason to rally, they just don’t need to hear negative news. So, in the absence of any, we see equities flying and U.S. Treasuries offered.”

 

Weston expects more monetary policy stimulus from the U.S. Federal Reserve before Christmas if the fiscal package comes in too small or too late.

 

Aiding risk sentiment, U.S. President Donald Trump sent out a flurry of tweets on Wednesday urging Congress to pass piece-meal aid packages for targeted industries, small business and consumers, backpedaling from his earlier stance to unilaterally end negotiations.

 

Further, new polls show Democratic candidate Joe Biden in a firm lead against Trump ahead of the November elections. Investors see such an outcome making the passage of a new stimulus bill more likely.

 

All eyes will now be on U.S. employment data due later in the day, which will likely show the recovery in the world’s largest economy losing steam.

 

Economists predict a decline in jobless claims, however, continued claims are expected to remain firmly above 10 million.

 

Despite the dour forecasts, Wall Street rallied overnight with the Dow up 1.9%, the S&P 500 gaining 1.7% and the Nasdaq adding 1.88%.

 

In a sign the rally will extend, E-mini futures for the S&P 500 rose 0.15%.

 

In currencies, the dollar was barely moved against the yen at 106. The euro was unchanged too at $1.1764.

 

The biggest mover was the New Zealand dollar, which slipped 0.4% after senior officials at the country’s central bank signalled further monetary policy easing, including negative rates, was just round the corner.

 

The Australian dollar was 0.1% weaker at $0.7130.

 

In commodities, spot gold was a shade weaker at $1,886 per ounce.

 

Oil prices were weaker on higher crude inventories.

 

Brent crude futures fell 2 cents to $41.97 a barrel, while U.S. crude was down 2 cents to $39.87 a barrel.

 

 

 

 

JPMorgan pledges $30 billion to address racial wealth gap

(Reuters) - JPMorgan Chase & Co said on Thursday it would commit $30 billion to address racial inequality over the next 5 years, marking one of the largest corporate pledges related to race since the death of George Floyd.

 

The initiative seeks to provide $8 billion in new mortgages for Black and Latino borrowers, $14 billion in loans for affording housing projects, $2 billion in small business loans, and $2 billion in philanthropy.

 

In comparison, Bank of America Corp and Citigroup Inc have made similar pledges totaling about $1 billion each.

 

JPMorgan, the largest U.S. bank by assets, earned $36.4 billion in profit last year.

 

A wide range of American companies from technology giants like Facebook Inc to consumer product titans like The Kraft Heinz Co announced financial commitments to counteract systemic racism in the aftermath of the May 25 death of Floyd, a Black man, which led to weeks of protests across the country.

 

But JPMorgan’s commitment stands out because of the way the bank is embedding the initiative across its business lines.

 

So far, most banks have primarily relied on grants to Community Development Financial Institutions (CDFIs), which then handle distributing the loans to under-served communities.

 

“We didn’t lead with philanthropy ...We wanted the businesses to lead because we knew that would have sustainable impact,” said Brian Lamb, global head of diversity and inclusion in an interview. “JPMorgan Chase is stepping up as a firm to use its own balance sheet as well to provide access.”

 

The bank has also committed to do more business with minority suppliers, improve the diversity of its workforce, and open 100 branches in low-income communities.

 

 

 

Rwanda: SMS Based Learning Debuts in the Country

Primary and secondary school students in Rwanda can now learn via .SMS based platform launched by Eneza Education, an education technology company.

 

In the 1st phase starting today, students will get to ask questions to a pool of teachers and receive responses while in phase 2 launching in November, students will access lessons and quizzes aligned to the Rwanda curriculum.

 

Eneza Education is an education technology company founded in 2013 that provides learning and revision materials via any kind of phone and currently operational in Kenya, Ghana and Cote d'Ivoire.

 

 

The firm has partnered with Mastercard Foundation to launch an SMS based learning platform, Shupavu, in Rwanda that will enable students to remain engaged with their studies while waiting for schools to re-open and also enable revision from home when schools re-open.

 

The launch of Shupavu in Rwanda is part of Mastercard Foundation's COVID-19 Recovery and Resilience Program which has two main goals.

 

The programme aims at delivering emergency support for health workers, first responders, and students as well as strengthening the diverse institutions that are the first line of defense against the social and economic aftermath of this disease.

 

The SMS platform will provide access to the 'Ask a Teacher' feature where students can ask questions to a pool of teachers and receive responses via SMS shortcode 2910 on the MTN network.

 

Starting November 1, learners will also be able to access lessons and quizzes aligned to the Rwandan curriculum via the same shortcode. The service will be free to students in Upper Primary and Lower Secondary till 31st July 2021.

 

 

Students will register using their identification number used when accessing Rwanda Education Board (REB) eLearning platform.

 

Wambura Kimunyu, the Chief Executive at Eneza Education said that the platform is available on any mobile phone however basic and is linked to e-learning platforms by REB.

 

"Our Shupavu platform digitizes the local curriculum and makes it available to any mobile phone, however basic. We have had the privilege of serving millions of learners in Kenya, Ghana, and Cote d'Ivoire and we look forward to serving millions of Rwandan learners too. We hope learners in Rwanda will find our 'Ask A Teacher' Platform that will be linked to REB eLearning to be a valuable study companion at this time," Kimunyu said.

 

Since mid-March, over 3 Million students in Primary and Secondary school have been currently out of school in Rwanda as part of social distancing measures put in place by the government to contain the Covid-19 pandemic.

 

 

With uncertainty prevailing about when schools will be able to reopen again, the platform is geared at ensuring economically disadvantaged backgrounds falling even further behind their peers in their learning.

 

The intervention has leveraged the most widely available tools and technologies to support continued learning for those who would otherwise be left behind complementing lessons being broadcast via Radio by the REB to students.

 

Rica Rwigamba, Mastercard Foundation Country Head in Rwanda the approach to use SMS as opposed to data or connectivity aims to make it accessible to the majority of households including the most vulnerable.

 

"While many educational technologies rely on an internet connection, Eneza is fairly unique in its focus on enabling learning via SMS with no data or connectivity requirement. This makes it accessible to the majority of households, including the most vulnerable. We've seen how impactful this model has been in Kenya and other countries and look forward to seeing it support thousands, if not more, of young Rwandans," said Rwigamba.

 

Christine Niyizamwiyitira, Head of Department of ICT in Education at Rwanda Education Board said that the new platform will complement other initiatives such as TV and Radio lessons.

 

"Using low-tech is key to ensure wide access. Ongoing TV and Radio lessons will be complemented by Eneza education's SMS based platform by adding interaction between teachers and students. Furthermore, SMS based lessons and assessment delivery will support our eLearning to reach as many students as possible," said Niyizamwiyitira.-New Times.

 

 

 

Nigeria: Cabinet Approves $3.02 Billion for Port Harcourt-Maiduguri Rail Line

The Federal Executive Council has approved $3.02 billion for the re-construction of Port Harcourt to Maiduguri rail line.

 

The Minister of Transportation, Rotimi Amaechi, said this while briefing State House reporters after Wednesday's council meeting.

 

"The Federal Executive Council FEC has approved the award of contracts for the rehabilitation and reconstruction of the Port Harcourt-Maiduguri eastern narrow-gauge railway, with new branch lines and trans-shipment facilities," he said.

 

Mr Amaechi said the FEC also approved contracts for the construction of a deep-sea port in Bonny as well as a railway industrial park in Port Harcourt.

 

"They've also approved the construction of a new deep seaport in Bonny, under PPP and the construction of a railway Industrial park in Port Harcourt.

 

"The railway line will be at the cost of $3,020,279,549. The industrial park, which is under PPP, at no cost to the federal government, will cost $241,154,389.31. The Bonny deep seaport will cost $461,924,369, at no cost to the federal government.

 

"The Port Harcourt to Maiduguri narrow gauge railway will have new branch lines: from Port Harcourt to Bonny and from Port Harcourt to Owerri are new lines. There's another connecting narrow gauge to standard gauge at Kafanchan. There is a branch line from Gombe to Damaturu and Gashua. That's what has been approved," he said.-Premium Times.

 

 

 

Sudan: No Respite for Sudan Bread and Fuel Shortages

Khartoum / Omdurman — There are no signs of respite for the severe bread and fuel shortages in Sudan. The Council of Ministers discussed in yesterday's meeting the rapidly deteriorating living conditions and the bread and fuel shortages.

 

The ministers discussed the measures that have been taken to import flour in Port Sudan. The budget for that has already been allocated. The Council of Ministers stressed that state support remains necessary to provide flour and medicines.

 

Minister of Information and Government Spokesperson Feisal Mohamed Saleh announced that certain petrol stations have been selected to provide fuel for agricultural and transportation purposes.

 

Residents of Ombadda in Omdurman reported to Radio Dabanga that most of the bakeries in their district have been closed due to shortages of flour.

 

They stressed that the neighbourhood needs water, health services, and police stations. They noted growing piles of garbage at the markets, and far-going corruption in the distribution of residential plots.

 

Their sit-in in front of the Dar El Salaam locality offices entered its 41st day. The protestors call for the replacement of corrupt employees affiliated with the regime of ousted President Omar Al Bashir.

 

Members of Resistance Committees in Omdurman's El Abbasiya, El Umara, El Hashmab, and surrounding districts continued their protests against the water outages that started six months ago. "There used to be water available at night, but this deteriorated in the past three weeks," a protestor said.

 

The protestors blocked the main roads Street 40, El Fil street, and El Morada Street in Omdurman to lend force to their demands for better services.

 

Radio Dabanga's editorial independence means that we can continue to provide factual updates about political developments to Sudanese and international actors, educate people about how to avoid outbreaks of infectious diseases, and provide a window to the world for those in all corners of Sudan. Support Radio Dabanga for as little as €2.50, the equivalent of a cup of coffee.-Radio Dabanga.

 

 

 

Tanzania: Vodacom Targets 5g Technology, As It Marks 20 Years in Tanzania

Dar es Salaam — Vodacom Tanzania is in initial discussions with Tanzania Communications Regulatory Authority (TCRA) on the possibility of investing in 5G technology.

 

This comes as the telecommunication firm was soldiering on with its Sh75 billion investment this year alone in broadband expansion for 3G and 4G technologies across the country.

 

Managing director Hisham Hendi told The Citizen yesterday that the company was only awaiting regulatory approvals before it can start investing in 5G.

 

5G refers to the 5th generation technology standard for broadband cellular networks. It is a new global wireless standard after 1G, 2G, 3G, and 4G mobile technologies. 5G enables a new kind of network that is designed to connect virtually everyone and everything together including machines, objects, and devices.

 

Speaking on the sidelines of celebrations to mark two decades of Vodacom's presence in Tanzania yesterday, Mr Hendi said as soon as the regulator gets 5G spectrum, the firm will not hesitate to start investing in the system.

 

 

"But, are we interested in evolution and innovation? Yes, and 5G is an area where Vodacom would like to go towards," said Mr Hendi.

 

He said they were doing all it takes to expand broadband coverage in the country.

 

Vodacom's Corporate Affairs director Rosalynn Mworia said the company was making huge investments in 2G, 3G and 4G coverage, with a specific view on ensuring that such services are accessed by 90 percent of the population come 2025.

 

This, she added, would allow more Tanzanians to have access to life enhancing services and truly transform their lives through the use of technology.

 

 

However, she added, the initiatives were being affected by a number of challenges, particularly lack of enough handsets for 4G technology.

 

Ms Mworia said the industry's players needed to start addressing challenges in 4G technology to tap into the technology which enhances access to wider services.

 

"It is time the government considered cutting handset costs for easy accessibility," she pleaded.

 

"For our part, we as Vodacom, we pledge to continue creating enabling spaces, solutions and opportunities for a brighter future."

 

Since its inception, Vodacom, with a customer base of over 10 million M-Pesa clients, has provided exceptional telecom services by building extensive infrastructure in the country aimed at bringing affordable connectivity to customers.

 

Going by TCRA data, some Sh2 billion is deposited through M-Pesa agents every hour.

 

 

With 15 million Voice and data subscribers and a 32 per cent market share, Vodacom is the country's market leader in telecommunications.

 

According to Vodacom managing director, the firm has reached more Tanzanians in rural areas through the construction of 218 communication sites, reaching over 200 wards and connecting over 3.6 million Tanzanians to mobile services such as voice, data and M-Pesa.

 

"Vodacom prides itself for being at the forefront of innovation and in the past years have introduced many firsts in the market leveraging on its superior network and Vodacom people and a constant drive to make life better for customers," said Mr Hendi.

 

"Vodacom's 20 years journey has been a success, thanks to forged partnerships with employees, the government, media, businesses, customers and the entire community and looks forward to an even exciting future."

 

Since listing in the Dar es Salaam stock exchange (DSE) in 2017, more than 40,000 Tanzanians own shares in the company and have received dividend payouts.

 

Mwananchi Communications Limited (MCL) acting managing director Bakari Machumu said Vodacom, which was the first company to introduce mobile money in Tanzania, had a reason to celebrate for being part and parcel of the digital payment landscape transformation.

 

Mr Machumu, who doubles as the MCL Executive Editor, said Vodacom, which accounts for 40 percent of mobile money market share, had set a stage for providing essential services more conveniently.

 

"In the past financial inclusion was very low. But with M-Pesa, many people from rural to urban areas can make transactions and hence take up financial inclusion," he noted.

 

Since the 2008 introduction of mobile money services in Tanzania, financial inclusion has more than halved, with M-Pesa playing a vital role, according to Vodacom Tanzania.

 

It's a fact that mobile technology and connectivity is driving financial inclusion-positively contributing to Tanzania making measurable progress in achieving the UN Sustainable Goals.-Citizen.

 

 

 

Namibia: Air Namibia to Resist Liquidation

THE financially troubled Air Namibia is opposing a High Court application in which a Belgian lawyer wants the national airline to be declared bankrupt and liquidated.

 

The airline has given notice that it will be opposing an application for its liquidation, which was filed at the High Court late last week.

 

In the application, Belgian lawyer Anicet Baum, liquidator of the company Challengair, is claiming that the airline is insolvent as it is unable to pay its debts, and is asking the court to order that it should be wound up.

 

Baum says Air Namibia acknowledged in a settlement agreement with him in December last year that it owed Challengair an amount of 18,2 million euro (about N$350 million), which it undertook to repay in instalments until September 2021.

 

To date, the airline has paid 8,2 million euro (about N$158 million) of that debt, and has not honoured the settlement agreement, Baum is claiming.

 

 

Air Namibia's debt woes originate from an agreement for the lease and maintenance of a Boeing 767 aircraft which it and Challengair concluded in 1998.

 

After a dispute between the two companies arose, they agreed near the end of 2005 to refer the matter for arbitration, which was done in Paris, France.

 

The arbitrator delivered a final award in Challengair's favour in August 2011, and a court in Munich, Germany, in January 2015 declared that the award could be enforced in Germany, according to documents filed at the High Court.

 

Baum says since mid-April Air Namibia has not made any payments as undertaken in the settlement agreement, and its board chairperson and past and current chief executive officers have acknowledged that the airline is unable to pay its debts as they become due.

 

 

The government, as shareholder of Air Namibia, has also publicly stated numerous times that the airline is insolvent and unable to pay its debts, and that its liabilities exceed its assets, Baum also says in an affidavit filed at the court.

 

He adds that Air Namibia made a commitment on 14 July this year to pay its debt to Challengair in terms of a changed payment schedule - but it has been unable to meet that schedule as well.

 

That shows the airline is deep into commercial insolvency, Baum also says.

 

He further says despite receiving large-scale financial assistance from the government over several years, the airline has been unable to change its business for the better, and it would be in the interest of the public to have it wound up.

 

The government in December last year made a N$578 million guarantee available to the cash-strapped airline to sustain its operations until the first quarter of 2020. These funds were used to settle part of the debt owed to the Belgian company.

 

The airline initially wanted a N$1,6 billion bailout from the government in September 2019 for its operations, threatening that without the lifeline it would be forced to shut down.

 

Minister of public enterprises Leon Jooste has said for Air Namibia to restore solvency and implement a new feasible business model the airline would require between N$4,3 and N$5 billion, depending on various factors.

 

In July this year, minister of finance Iipumbu Shiimi said the airline needed N$7 billion this financial year to survive. This amount also takes into account outstanding debts of more than N$5 billion, which includes leases.

 

Shiimi, who is also the chairperson of the Cabinet committee on treasury, said they are assessing different options to restructure Air Namibia, because the current model is unsustainable and unaffordable.

 

Baum is represented by lawyer Sisa Namandje.-Namibian.

 

 

 


 


 


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

 

 

 


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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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