Major International Business Headlines Brief::: 12 October 2020

[Bulls n Bears]

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

 


 

 


Major International Business Headlines Brief::: 12 October 2020

 


 

 


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

 


 

 


 

 

ü  Answer to Harmony Gold’s growth ambitions may still be best found on its
doorstep

ü  Lucapa Diamond re-opens Mothae mine after six month Covid-19 induced
hiatus

ü  Tharisa outperforms adjusted 2020 guidance, says rhodium exposure will
help growth

ü  Northam Platinum’s credit upgraded on expectations of “robust” cash flow

ü  Golden Star extends credit facility to $70m as convertible bond date
approaches

ü  Mining veteran Mick Davis fears mining majors are choosing dividends over
reinvestment

ü  UK economy: Shoppers aid growth but slowdown ahead, says report

ü  Covid in Scotland: Pub valuations hit by restrictions

ü  China gains hoist Asian stocks to two-year peak

ü  U.S. energy companies begin restoring oil and gas output after hurricane

ü  TikTok rival Triller explores deal to go public - sources

ü  Mallinckrodt files for bankruptcy protection amid U.S. opioid litigation

ü  Hyundai to expand Kona EV recall to North America, Europe over battery
fire risk - Yonhap

ü  EU planning tougher regulation for 'hit list' of big tech firms - FT

ü  Kenya: Railway Demolitions Leave 3,000 Traders Without Jobs

ü  Nigeria: Don't Rely On Oil Revenue in 2021 Budget, OPS Tells Govt

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Answer to Harmony Gold’s growth ambitions may still be best found on its
doorstep

HARMONY Gold’s declaration that it would re-tool its African growth strategy
seems interestingly timed as executives throughout the industry have adopted
a position of ‘watchful, but doubtful’ over merger and acquisition activity.
That’s because the current price of gold means this might be the top of the
market, making potential targets very expensive to buy.

 

That would ruin Harmony’s recent track record. Its purchase of Mponeng and
Mine Waste Solutions from AngloGold Ashanti for a total cash and revenue
share of $470m was equal to $83 per equivalent gold ounce reserve. This
compares to $98 per oz reserve paid by Newmont Mining, a US company, for
Goldcorp and $277/oz paid by Chinese firm, Zijn for Continental Gold.

 

According to a report by McKinsey & Co, a consultancy, top amongst the CEO
in-tray in the gold sector is ‘innovations in organic growth exploration’
above the imperative of ‘inorganic growth acquisitions’.

 

The report recommends the use of “advanced analytics to assess a wide range
of data sources, including drill logs, geological models and unstructured
map analysis’.

 

That sounds very much like consultancy-speak, but the benefit of looking
closer to home in a brownfields expansion won’t be lost on Harmony which has
ample gold resources on its doorstep. South Africa has significant gold, at
a very deep level, that could be nonetheless incentivised by the gold price.

 

According to Harmony’s latest reserve and resource statement, it has 22.2
million oz in measured resource demonstrating a high level of economic
confidence compared to the 18.5 million oz in ‘total’ mineral resources in
its Papua New Guinea portfolio which includes the categories of indicated
and inferred mineral resources about which there is less economic
confidence.-miningmx

 

 

 

 

Lucapa Diamond re-opens Mothae mine after six month Covid-19 induced hiatus

LUCAPA Diamond Company has re-opened Mothae mine in Lesotho after a six
month Covid-19 induced hiatus, the company said on Thursday.

 

The mine will be operated up to a 75% of nameplate capacity “
 due to
Covid-19 protocols in place”, it said.

 

“Mothae is an important contributor to the Basotho nation and Lucapa and the
Government of Lesotho are excited to have most of our teams and contractors
back at the mine,” said Stephen Wetherall, MD of Lucapa.

 

“We too look forward to implementing recently approved marketing initiatives
that will see additional value derived for the Mothae high-value
production.”

 

The re-opening of the mine will enable Lucapa to deliver into its new
marketing channel announced in September. In terms of the agreement, Lucapa
will sell its goods directly to diamantaires, and participate in the margins
of the polished goods.

 

In April, Lucapa sold 3,963 carats from the mine into the partnership
achieving an average price of $505 per carat.

 

“This is a similar marketing channel successfully implemented at Lucapa’s
Lulo mine in Angola which has already shown its value to the mine,” said
Wetherall.--miningmx

 

 

 

Tharisa outperforms adjusted 2020 guidance, says rhodium exposure will help
growth

THARISA brought its 2020 financial year to a strong close, the constraints
of the Covid-19 pandemic in the third and final quarters notwithstanding.

 

Platinum group metal (PGM) production for the three months ended September
totalled 40,500 ounces 6E, taking full-year output to 142,000 oz which is
more than the 130,000 to 135,000 oz for PGM adjusted guidance.

 

Chrome production was 371,000 tons for the quarter taking full-year
production to 1.35 million tons which is another beat of adjusted guidance
of 1.25 to 1.30 million tons (Mt). Tharisa has guided to production in the
current 2021 financial year of 1.45Mt to 1.55Mt chrome concentrates, and
155,000 to 165,000 oz of PGMs.

 

 

In terms of top line revenue, Tharisa’s realised chrome price was $140/t
while its contained metal basket price totalled $1,951/oz.

 

In notes to the fourth quarter production report published on Thursday,
Tharisa CEO, Phoevos Pouroulis alluded to the high rhodium and palladium
received prices which were likely to be feature of the firm’s year-end
report.

 

The spot price for rhodium hit in excess of $13,000/oz, a record level. It
and the palladium price “
 ensures Tharisa has an excellent financial and
operating platform to progress the business through its next phase of
growth,” he said.

 

The build of the Vulcan smelter had restarted following interruptions caused
by Covid-19 related lockdowns. The facility – which will take chrome
production to two million tons (it was originally conceived to achieve this
level in 2020) – will be completed in 12 months.

 

“Revised capital expenditure has not been provided, but we would expect the
project to be broadly in line with previous guidance ($54m), helped by rand
devaluation to offset higher local costs,” said Berenberg in a note on
Tharisa’s fourth quarter. The impact of the Vulcan project would be most
likely felt in the 2022 financial year, it added.

 

Shares in Tharisa responded favourably, rising 14% this week.-miningmx

 

 

 

 

Northam Platinum’s credit upgraded on expectations of “robust” cash flow

GLOBAL Credit Rating (GCR) upgraded Northam Platinum’s long term credit
rating owing to its “strengthened earnings profile” and expectations of
“robust” free cash flow, the platinum group metal producer said in an
announcement today.

 

Other factors behind the upgrade were “
 the positive manner in which
Northam managed and recovered from the impact of Covid-19, the group’s
globally competitive cost position and Northam’s track record of maintaining
conservative financial policies,” it said.

 

Northam’s national scale long term credit rating is now A(ZA) which compares
to a previous rating of A-(ZA). The firm’s short term credit rating has been
upgraded to A1(ZA) from the previous rating of A2(ZA), with a stable
outlook.

 

 

“The stable outlook reflects GCR’s view that the group will pursue a
conservative financial profile and will continue to benefit from its ongoing
production ramp up against supportive pricing levels, which should translate
into robust margins and cash flows to sustain strong credit metrics over the
next 12 to 18 months,” Northam said.

 

Having de-risked its financial exposure to a black economic empowerment
structure over the last 18 months, Northam said it would consider other
firms of shareholder returns.

 

Speaking at the firm’s year-end results presentation in August, Northam CEO,
Paul Dunne, said that “
 all options for returning value to shareholders are
now open to us and the board will continue to review this over time”.

 

Previously, Northam has used any free cash to buy preference shares in
Zambezi Platinum, a JSE-listed company it helped create as part of its
empowerment obligations.

 

Post the year-end, Northam held a 46.7% stake in Zambezi Platinum whose
preference shares are backed by Northam shares. In buying Zambezi preference
shares, Northam reduces its shares in issue and boosts share earnings.

 

The preference shares, issued to empowerment groupings, carry a 10-year
lock-in which ends in 2025. At that point, preference share holders can make
redemptions in cash or in Northam shares. Northam also undertook to fund any
shortfall should there be a difference in the value payable to preference
shareholders and Northam shares held.-miningmx

 

 

Golden Star extends credit facility to $70m as convertible bond date
approaches

GOLDEN Star has extended a credit facility by $20m to $70m in order to
tackle the possible repayment of a convertible debenture that falls due in
August next year, as well as to fund the development of its Wassa gold mine
in Ghana.

 

Funds from the credit facility will also be put towards exploration as the
company focuses on organic growth options. Earlier this month, Golden Star
completed the sale of its other Ghana mine, Prestea.

 

Andrew Wray, CEO of Golden Star, said in an announcement today that the
credit facility extension would create $50m in liquidity.

 

 

It comes though with a requirement to extend the firm’s hedging programme to
a total of just over 100,000 oz of gold (including the existing programme)
over the next two years.

 

Wray said an additional 87,500 oz of gold was hedged to support the credit
facility extension. The new hedges have a floor price of $1,600/oz and a
ceiling of $2,176/oz in 2021 and $2,188 per ounce in 2022. These additional
positions will mature at a rate of just over 10,000 oz per quarter from
January 2021 to December 2022.

 

The overall average floor price of the firm’s hedging programme is $1,587/oz
and an average ceiling price of $2,158/oz.

 

Said Wray: “The extension of the gold price protection programme to the end
of 2022 secures an attractive floor and ceiling price for the period,
further de-risking the company’s ability to deliver on its financial
obligations while also looking to explore the options to capitalise on the
large resource and latent mill capacity at Wassa”.-miningmx

 

 

 

Mining veteran Mick Davis fears mining majors are choosing dividends over
reinvestment

THE world’s largest mining companies were putting their futures at risk by
choosing to pay dividends before re-investing in their businesses, said Mick
Davis, the former CEO of Xstrata.

 

Responding to questions at the Joburg Indaba conference, Davis acknowledged
the important strides mining firms made in stabilising following the
commodity price correction of 2013 to 2016. This was a period when the
mining sector’s high debt, fuelled by unbridled expansionism, was exposed,
sending investors scattering.

 

There were many examples of how “once grand” mining firms, such as Rand
Mines in South Africa, had become extinct after failing to reinvest, said
Davis. “It was once the biggest mining company in the world,” he said.

 

 

“Mining majors have addressed their fundamental costs and all of them have
done a fantastic job; making themselves more resilient as a result of doing
that.

 

“Anglo American is a very good example of that. A few years ago, Anglo
American was in a very bad shape, whereas now it is in an entirely different
position,” he said.

 

At Xstrata, Davis proposed in 2009 a ‘merger of equals’ with Anglo American
then led by Cynthia Carroll. The bid was eventually repelled although
Carroll was three years later replaced by Mark Cutifani who is Anglo’s
current CEO.

 

Said Davis: “As a result of the retardation of investment programmes, they
[mining majors] have been able to return significant forms of cash and
dividends to shareholders. They have satisfied the needs of the investment
community.

 

“Therein lies their biggest challenge going forward. Directors and
management teams have not focused on this very simple proposition: every day
they take something out of the ground and unless you do something that
replaces that, you end up withering and dying.

 

Davis said that “some value creation” could be achieved by lowering the cost
base which made mining grades more payable, but more value comes from
reinvestment which increased options. “The ability to create value depends
upon the options you have available in your portfolio.

 

“I fear that this very focused approach on returning cash to shareholders in
the form of dividends and capital returns has not in fact taken into account
sufficiently the need to reinvest and so has not created optionality.”

 

Mining companies therefore faced a trend of declining NPVs (net present
valuations) which would reflect in the share prices as the value of future
cash flow declined.

 

Olivia Markham, MD, of Black Rock’s natural resources, said the mining
sector was at the point when reinvestment had become necessary, although it
could be accommodated in a framework that also allowed for continued
shareholder returns.

 

“From 2019, balance sheets are strong, capital allocation is good, but for
many companies growth is lacking. I’ve been worried about whether we see low
returning growth come back or a splurge in M&A.

 

“I am conscious that there is a point when we have to start investing in
growth and we are at the point. My hope is that with commodity markets
becoming tighter, returns are more robust.”

 

“I think there is a permanent change,” she said of the mining companies
installing regular investment returns, adding that of the indiscipline of
2011 to 2016 was a moment “
 when we got all caught up in the euphoria of
the phenomenal demand event that was China industrialisation”.-miningmx

 

 

 

 

UK economy: Shoppers aid growth but slowdown ahead, says report

The UK economy may have grown by as much as 17% in the three months to the
end of September, says the EY Item Club, but slower growth may follow.

 

Shoppers splurged during the period as coronavirus lockdown restrictions
were lifted, it said.

 

It is a rosier vision than the one offered by Item Club economists in the
summer, but they warned that growth for the rest of 2020 would be far
slower.

 

Growth for the final three months will be 1% or less, they predicted.

 

"The UK economy has done well to recover faster than expected so far," said
Howard Archer, chief economic adviser to the EY Item Club.

 

"Consumer spending has bounced back strongly, while housing sector activity
has also seen a pick-up, in part thanks to the stamp duty holiday."

 

The economy probably grew 16-17% in the third quarter of the year compared
with the second quarter, it said. It had been expecting growth of 12%.

 

Trade deal risk

While government help such as the furlough programme has provided
"much-needed support", growth will now begin to fade, said Mr Archer.

 

The end of the furlough scheme, under which workers had part of their salary
paid by the government, will mean higher unemployment and sluggish growth,
said the forecasters, who use a similar economic model to the Treasury.

 

That said, the UK economy is now predicted to regain its pre-pandemic size
in the second half of 2023. Back in July, the EY Item Club did not expect
that to happen until late 2024.

 

Official figures from the Office for National Statistics showed last week
that The UK economy continued its recovery in August, growing by 2.1% in the
month, as the Eat Out to Help Out scheme boosted restaurants.

 

It was, however, smaller than economists had estimated and helped drag down
the estimated pace of recovery for the year.

 

As with any economic forecast, there are factors which could speed up or
slow down the recovery, the economists said.

 

A vaccine is likely to help the economy, but there are more likely threats
to growth than there are surprise boosts.

 

Factors that could weigh down growth include a drop in consumer spending,
more lockdown measures, slow Brexit negotiations between the UK and the EU
and a spike in unemployment.

 

"The latest forecast also notes that, even if further virus outbreaks are
contained and major restrictions on economic activity are avoided, consumers
and businesses could remain cautious in their behaviour for an extended
period," the report said.

 

The Club's estimates assume a simple free trade agreement with the EU by the
end of the year.

 

Without an agreement, growth of 4.8% is forecast in 2021, down from 6%,
while growth in 2022 would be cut to 2.6% from 2.9%.--BBC

 

 

 

Covid in Scotland: Pub valuations hit by restrictions

Pubs are now being given lower valuations when they go on the market because
the calculations are based on profits affected this year by the coronavirus
restrictions.

 

It means bars and pubs are being put on the market at up to 20% less than
they would have done 12 months ago.

 

Christie and Co, the main agent for buying and selling pubs, said it was "a
distressing" situation.

 

It also said the bulk of casualties would be seen next March/April.

 

The valuation of a pub is calculated by multiplying its net profit by an
amount depending on where it is located. A city centre pub will have a
higher multiple than a pub in the suburbs.

 

Brian Sheldon, Christie and Co's regional director for hospitality in
Scotland and north west England, said most pubs were currently propped up by
loans.

 

He said: "The loans were taken out around March, April this year but start
being paid back after 12 months so we won't start seeing any real distress
in the market until the first quarter of next year.

 

"Undoubtedly pub values have been negatively impacted by the Covid
restrictions.

 

"The closures and restricted trading means income is down in pubs and that
affects the valuation. They will be valued at less because their profit is
down.

 

"It is distressing."

 

There are currently about 2,845 pubs in Scotland.

 

The Scottish Licensed Trade Association estimates that up to two-thirds of
them will have to close in the next few months with the loss of 25,000 jobs.

 

Pubs were forced to close in the central belt on Friday by the Scottish
government. They are not allowed to reopen until at least 25 October.

 

Tighter restrictions also came into force in the rest of the country on
Friday.

 

Licensed premises are now not allowed to serve alcohol indoors and opening
hours will be limited across Scotland.

 

Saturated market

Iain Ponton, owner of Oz Bar in Edinburgh's Grassmarket, said he was
concerned the restrictions were lowering the value of his pub.

 

He said: "I'm not planning to sell my pub but my sympathies are with those
owners who will be forced to sell next year when the value of their pub is
down through no fault of their own.

 

"Some have put 50 years into their pubs and its their pension and others
have sold their houses to keep their pubs going.

 

"The 10pm curfew saw us drop our income by half and we were shut down for
three months and now for a further two weeks so this will really affect
valuations."

 

Mr Sheldon said there was also the added problem that a saturated market
could lower prices further.

 

He said: "The licensed trade association is saying two-thirds of pubs won't
reopen.

 

"If there are so many pubs on the market at once there will be over-supply
and the prices will reduce.

 

"It's a buyer's market. There are still people with money out there who can
pick up businesses now for a fraction of what they were worth 12 months ago.

 

"A win for someone is a severe loss for someone else through no fault of
their own."

 

--BBC

 

 

 

 

China gains hoist Asian stocks to two-year peak

SINGAPORE (Reuters) - Chinese stocks led Asian markets higher on Monday as
investors bet on a steady recovery for the world’s no. 2 economy, though
caution about the fate of U.S. stimulus kept the dollar firm and a central
bank policy tweak unwound some of the yuan’s gains.

 

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS
rose 1% to 2-1/2-year highs, buoyed by a 2.4% gain in Chinese blue chips
.CSI300 and a 2% rise by Hong Kong's Hang Seng index .HSI. Japan's Nikkei
.N225 slipped 0.3% as investors fretted about corporate earnings. [.T] [.HK]

 

“If capital is moving on relative growth rates, then China is looking quite
attractive,” said Chris Weston, head of research brokerage Pepperstone in
Melbourne. Equities are cheap, yields advantageous and the outlook solid, he
said.

 

“From a virus perspective as well, we’re seeing concerns in Europe, while
China is considered a quasi-safe haven.”

 

The mood drove S&P 500 futures ESc1 up 0.2% and futures trade pointed toward
a positive start to European trade. EuroSTOXX futures STXEc1 rose 0.5%. FTSE
futures FFIc1 and sterling were steady ahead of a Brexit summit later in the
week.

 

China has returned from an eight-day Mid-Autumn festival with investors
encouraged by a robust rebound in tourism and ebbing coronavirus cases.

 

Qingdao city said on Monday it will conduct COVID-19 tests for the entire
population of more than 9 million people over five days after a small number
of new cases.

 

In the U.S. midwest, infections are at record levels and the World Health
Organization is urging fresh curbs for Europe.

 

Coronavirus aid plans in the United States are also in disarray, with the
Trump administration on Sunday calling on Congress to pass a stripped-down
relief bill while talks on a more comprehensive proposal were again at an
impasse.

 

“The economic fallout of COVID-19 has accelerated the relative decline of
the U.S. as the world’s economic engine,” said ANZ chief economist Richard
Yetsenga. “It is also increasing the centrality of Asia - and particularly,
of China.”

 

Chinese blue chips have gained 17% this year, compared with an almost 8%
gain by the S&P 500 .SPX. Foreigners' buying of Chinese government bonds hit
its fastest pace in more than two years last month.

 

YUAN WOBBLES

In currency markets, a 0.4% drop in the yuan dragged the China-sensitive
Australian dollar AUD=D3 lower and underpinned small but broad gains for the
dollar against other majors. [FRX/]

 

The People’s Bank of China has scrapped a requirement for banks to hold a
reserve of yuan forward contracts, removing a guard against depreciation.

 

Traders said that suggested authorities were discomfited by recent gains in
the currency. However the lack of an aggressively weaker setting of the
onshore trading band cooled some of those concerns and the yuan pared losses
a little.

 

The yuan is up more than 7% since late May and had shot higher on Friday as
investors wagered that a Joe Biden presidency would drive smoother Sino-U.S.
relations. It last sat at 6.7196 per dollar in onshore trade CNY=. [CNY/]

 

“We continue to expect a stronger yuan on the back of our expectation of
solid Chinese growth and favourable interest rate differentials between
China and the U.S.,” Goldman Sachs’ analysts said in a note, with a 12-month
yuan forecast at 6.50.

 

The euro EUR= edged 0.1% lower to $1.1819 and the yen JPY= firmed to 105.48
per dollar. The kiwi NZD=D3 dipped 0.1% with the softer yuan to sit at
$0.6661.

 

In commodity markets, oil prices were back under pressure after the
resolution of an oilworkers strike in Norway and the resumption of
production after a storm in the Gulf of Mexico.

 

Brent crude futures LCOc1 slipped 1% to $42.41 a barrel and U.S. crude
futures fell by the same margin to $40.17.

 

Gold XAU= held steep Friday gains at $1,929 an ounce as investors stuck with
bets that U.S. stimulus would eventually arrive and drive inflation to the
benefit of bullion. [GOL/]

 

The U.S. bond market is closed on Monday for Columbus Day.

 

 

 

 

U.S. energy companies begin restoring oil and gas output after hurricane

HOUSTON (Reuters) - U.S. energy companies were returning workers and
restarting operations at storm-swept production facilities along the U.S.
Gulf Coast on Sunday, two days after Hurricane Delta barreled through the
area.

 

Chevron Corp, Royal Dutch Shell Plc and BHP Group all said workers were
headed back to production platforms in the U.S.-regulated northern Gulf of
Mexico.

 

BHP expects to complete the return of workers to its Shenzi and Neptune
production platforms on Sunday, spokeswoman Judy Dane said, adding that
resuming flows will depend on how quickly pipelines return to service.

 

It can take several days after a storm passes for energy producers to
evaluate facilities for damage, return workers and restore offshore
production. The companies that operate oil and gas pipelines and process the
offshore output also shut ahead of the storm.

 

On Sunday, the U.S. Bureau of Safety and Environmental Enforcement (BSEE)
said 91% of offshore crude oil production remains shut in the U.S.-regulated
northern Gulf of Mexico following Hurricane Delta, which made landfall on
Friday night.

 

In addition, 62.2% of natural gas output remains shut in the Gulf following
the storm that made landfall near Creole, Louisiana, and weakened into a
low-pressure system over Mississippi on Saturday.

 

Through Sunday, a cumulative total of 8.8 million barrels per day (bpd) of
crude oil production and 8.3 billion cubic feet per day of natural gas
output from the Gulf has been shut because of Hurricane Delta.

 

The area produces about 17% of total daily U.S. oil production and 5% of
daily natural gas production.

 

Still remaining shut are the Calcasieu Waterway in Calcasieu and Cameron
Parishes in Louisiana and the ports of Lake Charles and Cameron, Louisiana,
near where Delta made landfall.

 

The ports of Beaumont and Port Arthur, Texas, including the Sabine Pass,
which serve major oil and liquefied natural gas processing plants, were
reopened with restrictions on Sunday, the U.S. Coast Guard said.

 

Total SA continued restarting its 225,500 barrel-per-day Port Arthur, Texas,
refinery on Sunday. The refinery, which is about 65 miles (100 km) west of
Creole, Louisiana, lost power on Friday.

 

Fast-moving Delta swept over Louisiana on Saturday and became a low-pressure
system over the U.S. state of Mississippi later that day. It was south of
Knoxville, Tennessee, Sunday morning and moving northeast at 16 mph (25.7 km
per hour).

 

Remnants of Delta were forecast to drop 3 inches to 6 inches (7.6 to 15.2
cm) of rain on parts of Tennessee, the Appalachian region of northeast
Georgia, western Carolinas and western Virginia, the National Hurricane
Center said on Sunday.

 

 

 

TikTok rival Triller explores deal to go public - sources

(Reuters) - Triller Inc, a budding competitor to popular short-video app
TikTok, is in discussions with blank-check acquisition companies about a
merger which would take the U.S. social media company public, according to
people familiar with the matter.

 

The deal would come as Triller seeks to capitalize on TikTok’s woes. U.S.
President Donald Trump’s administration has ordered TikTok’s Chinese parent
ByteDance to divest the app, citing concerns that the data of U.S. citizens
could be accessible to China’s Communist Party government. TikTok has sued
the U.S. government to stave off a ban from U.S. app stores while deal
negotiations continue.

 

Triller, which was launched in 2015 and only has a fraction of the 100
million users that TikTok boasts in the United States, has said it hopes
that the uncertainty over its rival’s future will drive more influencers and
users to its platform.

 

Triller is working with investment bank Farvahar Partners as it negotiates a
potential deal with a so-called special purpose acquisition companies
(SPAC), the sources said. A SPAC is a shell company that raises money in an
initial public offering (IPO) to merge with a privately held company which
then becomes publicly traded as a result.

 

Triller's SPAC negotiations are happening alongside discussions with
investors about a private fundraising round, led by investment bank UBS
Group AG UBSG.S, in which the Los Angeles-based company is seeking to raise
around $250 million, the sources said.

 

Triller has so far secured around $100 million in that round at a $1.25
billion (959.91 million pounds) valuation, according to the sources. It is
deliberating whether to proceed with the private fundraising or opt for the
deal with a SPAC, one of the sources added.

 

The sources cautioned that no deal is certain and asked not to be identified
because the negotiations are confidential.

 

Farvahar Partners and UBS did not immediately respond to requests for
comment.

 

SPACs have emerged as a popular IPO alternative for companies this year,
providing a path to going public with less regulatory scrutiny and more
certainty over the valuation that will be attained and funds that will be
raised. U.S. SPACs have raised $53.8 billion so far in 2020 through IPOs,
more than the total raised in the prior seven years, according to industry
tracker SPAC Research.

 

Triller said earlier this year it had 65 million monthly active users on its
short video app, although many analytics companies have said they have not
been provided enough access to independently verify Triller’s figures.

 

Triller’s celebrity users include musicians Alicia Keys, Cardi B and Eminem,
and its financial backers include Kendrick Lamar and The Weeknd.

 

Triller is owned by media industry veteran Ryan Kavanaugh and healthcare
executive Bobby Sarnevesht. Kavanaugh in 2004 founded U.S. film studio
Relativity Media LLC, whose films included the award-winning “The Fighter”.
The studio ended up filing for bankruptcy twice, in 2015 and 2018.

 

Sarnevesht was a partner at Bay Area Surgical Management, which lost a $37.4
million legal battle against Aetna Inc after the health insurance firm
alleged in 2012 that it had been defrauded by the surgery centers operator.

 

BID FOR TIKTOK

Triller sued TikTok in July, alleging it infringed its patent for stitching
together multiple music videos with a single audio track.

 

In August, Triller said it had partnered with investment firm Centricus
Asset Management Ltd in a bid for TikTok. ByteDance, however, said it was
not engaged in such discussions.

 

Trump last month said he had given his preliminary blessing to a deal that
would give a 20% stake in TikTok to computer networking conglomerate Oracle
Corp ORCL.N and retail giant Walmart Inc WMT.N. The negotiations
subsequently stalled, as ByteDance maintained it would keep an 80% stake in
TikTok, rather than distribute it to its investors.

 

TikTok is widely popular with U.S. teenagers, though its advertising
business is still nascent. Major companies, including Procter & Gamble Co
PG.N, Danone DANO.PA and Chipotle Mexican Grill Inc CMG.N told Reuters last
week they would keep spending on advertising with TikTok despite the
uncertainty over its future.

 

 

 

Mallinckrodt files for bankruptcy protection amid U.S. opioid litigation

(Reuters) - Mallinckrodt Plc MNK.N filed for bankruptcy protection on
Monday, saddled with lawsuits alleging it fueled the U.S. opioid epidemic
and after it lost a court battle to avoid paying higher rebates to state
Medicaid programs for its top-selling drug.

 

The company listed both assets and liabilities in the range of $1 billion to
$10 billion in a filing with the U.S. Bankruptcy Court for the District Of
Delaware.

 

More than 3,000 lawsuits have been filed accusing drug manufacturers of
engaging in deceptive marketing that promoted the use of addictive
painkillers, fueling an epidemic that since 1999 has resulted in more than
450,000 overdose deaths.

 

The company had in February said it planned to have its generic drug
business file for bankruptcy as part of a tentative $1.6 billion opioid
settlement to resolve claims by state attorneys general and U.S. cities and
counties.

 

It further warned on Aug. 4 the parent company and other units may also seek
bankruptcy protection after a judge allowed the federal government to force
it to pay higher rebates to state Medicaid programs for its
multiple-sclerosis drug H.P. Acthar Gel.

 

Its per-vial price has risen from about $50 in 2001 to $38,892 in 2019 and
it generated 30.1% of the company’s net sales last year.

 

The drugmaker said it will implement a restructuring support agreement that
would provide for an amended proposed opioid claims settlement and a
financial restructuring.

 

“The company has agreed to pay $260 million over seven years and reset
Acthar Gel’s Medicaid rebate calculation as of July 1, 2020, such that state
Medicaid programs will receive 100% rebates on Acthar Gel Medicaid sales,
based on current Acthar Gel pricing,” Mallinckrodt said in a statement.

 

During the bankruptcy protection, the company said it aims to resolve
opioid-related claims and to reduce its debt by about $1.3 billion, while
surviving on cash on hand and cash generated from operations.

 

 

 

Hyundai to expand Kona EV recall to North America, Europe over battery fire
risk - Yonhap

SEOUL (Reuters) - Hyundai Motor Co is set to triple the number of recalled
Kona electric cars over battery cell fire risks with plans to recall around
51,000 vehicles in North America, Europe, China and other markets, Yonhap
news agency reported on Sunday.

 

The recalls would come after the South Korean automaker announced last week
a voluntary recall plan for 25,564 Kona EVs at home starting Oct. 16.

 

Hyundai said in a statement on Monday it “is in the final stages of filing a
voluntary recall notice with the NHTSA (National Highway Traffic Safety
Administration) for U.S. Kona EVs and will start the process of informing
owners of these vehicles.”

 

Hyundai will recall 37,366 vehicles and 11,137 vehicles in Europe and North
America, respectively, according to Yonhap.

 

The Hyundai statement did not mention the other markets, the total number of
additional electric vehicles (EVs) it intends to recall or the dates of the
recalls.

 

South Korea’s transport ministry said last week Hyundai will voluntarily
recall its Kona EVs as a possible short circuit due to what may be faulty
manufacturing of its high-voltage battery cells could pose a fire risk.

 

LG Chem Ltd, which supplies batteries for Kona EVs, said last week faulty
battery cells were not the cause of fires in Kona EVs, and the exact cause
had not been determined.

 

It said a re-enactment experiment conducted jointly with Hyundai had not led
to a fire, so the fires could not be attributed to faulty battery cells. LG
Chem declined on Monday to comment beyond what it said last week.

 

Recalled Kona EVs in South Korea will undergo software updates for all
affected models and battery replacements of select models after inspections.

 

KB Investment& Securities said in a report on Monday it could cost Hyundai
as much as 600 billion won ($522.10 million) if they offer battery
replacements for the nearly 77,000 affected vehicles identified worldwide so
far.

 

Shares of Hyundai Motor and LG Chem fell 0.8% and 2.0%, respectively, on
Monday while the broader KOSPI market was up 0.3% as of 0430 GMT.

 

 

 

EU planning tougher regulation for 'hit list' of big tech firms - FT

(Reuters) - European Union regulators are making a 'hit list' of up to 20
large internet companies, potentially including Facebook, Apple, Amazon and
Alphabet's Google, that will be facing new and tougher rules aimed at
curbing their market power, the Financial Times reported on.ft.com/34NZ3lW.

 

The big technology platforms will have to comply with tougher regulation
than smaller competitors, the newspaper reported on Sunday, citing people
familiar with the discussions.

 

New rules will force the companies to share data with rivals and be more
transparent on how they gather information, the report said.

 

The list will be made based on parameters like market share and number of
users, the newspaper said, adding that the exact number of companies and the
precise criteria for the list was still being discussed.

 

 

 

Kenya: Railway Demolitions Leave 3,000 Traders Without Jobs

Over 3,000 jobs have been lost after properties worth millions were
demolished yesterday in Nakuru town.

 

All buildings on Kenya Railways land along Geoffrey Kamau Way were brought
down on Saturday night.

 

Businesses stretching about 500 metres were demolished in a move meant to
pave way for the rehabilitation of the Nairobi-Nakuru-Kisumu medium meter
gauge railway and the Sh160 billion expansion of the Limuru-Nakuru road,
which starts at Lironi all the way to Mau Summit.

 

The project is being undertaken under the Presidential Delivery Unit, with
engineers from the Kenya Defence Forces providing the technical support.

 

On Saturday evening, business owners and tenants were frantically carting
away their property in lorries to salvage the most they could.

 

At Falcon petrol station, tankers were drawing fuel days after the station
was marked for demolition.

 

 

A spot check by the Nation revealed that some of the businesses were barely
a few months old while others were yet to open doors.

 

For instance, a newly built accommodation facility -- by The Place Grill
Park -- was to be launched later this month.

 

The tenants had leases of between 15 to 30 years and had established mega
businesses that included night clubs, hotels and accommodation, gas
stations, car bazaars, a tyre centre among others.

 

Transport along the busy Nakuru - Eldoret highway was disrupted for hours as
looters made away with iron sheets, metals, furniture, refrigerators among
other properties despite heavy police presence.

 

In July, the government announced plans to rehabilitate the Sh3. 8 billion
medium meter-gauge railway, noting that the Kenya Railways Corporation had
issued a vacate notice to the business community.

 

However, the tenants maintained that they never received the vacate notice,
saying they were given a six-hour notice to vacate their premises.

 

 

They noted that some people who introduced themselves as officials of the
corporation told them to start packing their belongings on Saturday
afternoon.

 

Short notice

 

"They were arrogant. They informed us that we had less than six hours to
vacate or remove our properties from the premises. The notice was too short
and we could not do anything much to salvage our properties," a businessman
said.

 

Investors pointed out that they had leased from 2012 and were shocked by the
manner in which the contract had been terminated at a time when businesses
were starting to pick after the Covid-19 pandemic.

 

Plans to expand the Nairobi-Nakuru Highway into a dual carriageway also
informed the decision to fast-track the evictions.

 

Last week, President Uhuru Kenyatta signed a deal with the French government
in which the highway will be expanded into a four-lane dual carriageway.

 

The project, which will be spearheaded under a Public-Private Partnership,
is set to have a section of the highway within the lakeside town and take
the design of an expressway.

 

That design would mean taking more space, which had been occupied by the
demolished businesses.

 

The expansion of the Nairobi-Nakuru highway into a dual-carriage way, is
aimed at improving the flow of traffic to western Kenya and beyond.

 

The perennial traffic jams experienced on the highway are expected to reduce
drastically once the project is complete.-Nation.

 

 

 

Nigeria: Don't Rely On Oil Revenue in 2021 Budget, OPS Tells Govt

The Organised Private Sector (OPS) of the Nigerian economy has called on the
federal government not to rely much on oil revenue for the effective
implementation of the proposed 2021 budget due to the usual burst and boom
cycle of crude oil prices.

 

They also urged the federal government to use the budget to reboot the
economy by aligning the budget with the Economic Sustainability Plan (ESP),
which was unveiled and designed as the first line of defence to mitigate the
effects of the COVID-19 pandemic.

 

President Muhammadu Buhari had on Thursday presented a proposed budget of
N13.08 trillion to the National Assembly for the 2021 fiscal year.

 

But the Director-General of the Nigerian Association of Chambers of
Commerce, Industry, Mines and Agriculture (NACCIMA), Ambassador Ayo
Olukanni, has raised the alarm that revenue would be one of the biggest
challenges in implementing the 2021budget and advised the federal government
to truly diversify the economy by paying more attention to sectors like the
creative industry, agriculture, and mining and their entire value chain.

 

Olukanni said: "We see this budget as a continuum of the ESP, which was
designed to tackle issues such as improving agricultural production, food
security, provision of jobs and social safety net for the most vulnerable
segment of society."

 

The Director-General of Nigeria Employers' Consultative Association (NECA),
Mr. Timothy Olawale, also called on the government to block the leakages
that still permeate the system in order to promote accountability and
transparency, adding that "a more strategic need is to reduce the dependence
on revenues from oil and strategised ways and means in stimulating the
non-oil economy to provide the needed revenue for funding of the budget,"
Olawale said.

 

Speaking in the same vein, the Director-General of the Lagos Chamber of
Commerce and Industry (LCCI), Dr. Muda Yusuf, noted that "revenue is very
key and very central to the budget. If you look at the last three years
there has been large variances, large negative finances in the revenue
targets and it is not likely that what we will have in the 2021 budget will
significantly be different.

 

"So, the revenue will continue to be an issue if we continue to have the
economy the way it is and for as long as the private sector continues to
struggle with all the challenges in the business environment," he said.

 

Commenting on the debt profile of the country, Olukanni said that NACCIMA is
worried by the steady rise of both domestic and foreign debt portfolios of
the country.

 

 

"Under the 2021 proposed budget, N3.12 trillion has been set aside for debt
servicing which represents an increase of N445.57 billion over the N2.68
trillion for 2020. This is worrisome. We might have met our debt service
obligations so far. Steps must be however be taken to prevent our debt from
spiraling out of control and prevent a return back to the days of our status
as a debtor nation."

 

In the same manner, Olawale said that NECA foresees Nigeria's debt hitting
N45 trillion by the end of 2021.

 

He said: By the end of year 2020, the debt profile of the country would have
reached N35 trillion. Adding the N5.19 trillion anticipated in 2021, and we
believe there would still be addition borrowings, which could suggest that
the country could reach a N45 trillion debt mark by end of 2021.

 

"It is also interesting to note, that the value of the debt service in the
2021 budget is equivalent to 87.1 per cent of capital expenditure."-This
Day.

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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

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

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

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

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

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

Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


(c) 2020 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201012/598d10ee/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 28555 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201012/598d10ee/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 107064 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201012/598d10ee/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201012/598d10ee/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 108363 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201012/598d10ee/attachment-0007.jpg>