Major International Business Headlines Brief::: 19 October 2020

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Major International Business Headlines Brief::: 19 October 2020

 


 

 


 <http://www.spidexmedia.com/> 

 


 

 


 

 

ü  China's economy continues to bounce back from virus slump

ü  Alibaba increases stranglehold on Chinese shoppers

ü  Coronavirus: People to get emergency help to pay energy bills

ü  Bank of England boss: Best to 'act aggressively'

ü  Firms urged to get ready for new EU relationship

ü  Irish regulator probes Facebook's handling of children's data on
Instagram

ü  Japan can open probe into any merger involving Fitbit - new antitrust
watchdog head

ü  Ant Group gets Chinese nod for Hong Kong leg of $35 billion dual listing
- sources

ü  American Airlines plans to return Boeing 737 Max to service at year-end

ü  Cogeco's top investor rejects $8.4 billion revised bid from Altice USA

ü  Toshiba targets $3 billion revenue in quantum cryptography by 2030

ü  Mining billionaire Forrest buys famed Australian bootmaker RM Williams

ü  China passes export-control law following U.S. moves

ü  Asian markets jump on vaccine, U.S. aid hopes; gains capped by China data

ü  Nigerian Traders Protest Ghana's Delay to Reopen Shops

ü  Nigeria: 302 Nigerians, SERAP Sue Buhari Over Hike in Electricity Tariff,
Fuel Price

ü  Sibanye-Stillwater says “downstream exposure” will be part of battery
metals deal

ü  Glasenberg says Glencore considering raising target on Scope 3 emissions
control

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

China's economy continues to bounce back from virus slump

China's economy continues its recovery from the Covid-19 pandemic according
its latest official figures.

 

The world's second-biggest economy saw growth of 4.9% between July and
September, compared to the same quarter last year.

 

However, the figure is lower than the 5.2% expected by economists.

 

China is now leading the charge for a global recovery based on its latest
gross domestic product (GDP) data.

 

The near-5% growth is a far cry from the slump the Chinese economy suffered
at the start of 2020 when the pandemic first emerged.

 

For the first three months of this year China’s economy shrank by 6.8% when
it saw nationwide shutdowns of factories and manufacturing plants.

 

It was the first time China’s economy contracted since it started recording
quarterly figures back in 1992.

 

The key economic growth figures released on Monday suggest that China’s
recovery is gathering pace, although experts often question the accuracy of
its economic data.

 

The quarterly figures are compared to the same quarter of 2019.

 

"I don't think the headline number is bad," said Iris Pang, chief China
economist for ING in Hong Kong. "Job creation in China is quite stable which
creates more consumption."

 

China’s trade figures for September also pointed to a strong recovery, with
exports growing by 9.9% and imports growing by 13.2% compared to September
last year.

 

Over the previous two decades, China had seen an average economic growth
rate of about 9% although these pace has gradually been slowing.

 

While the Covid-19 pandemic has hampered this year's growth targets, China
is also embroiled in a trade war with the US which has escalated in recent
months.

 

The Chinese government has rolled out a raft of measures this year to revive
the coronavirus-hit economy and support employment.

 

While the central bank stepped up policy support earlier this year after
widespread travel restrictions choked economic activity, it has more
recently held off on further easing.

 

Premier Li Keqiang warned earlier this month that China needs to make
arduous efforts to achieve its full-year economic goals.

 

For the second quarter of this year, economic growth in China reached 3.2%
as its started its rebound.

 

"China's economy remains on the recovery path, driven by a rebound in
exports," said Yoshikiyo Shimamine, chief economist at the Dai-Ichi Life
Research Institute in Tokyo.

 

"But we cannot say it has completely shaken off the drag caused by the
coronavirus."

 

China's economy continues to grow at rates unimaginable in other covid-hit
countries.

 

Draconian lockdown measures to control the virus combined with some
government stimulus appeared to have worked well.

 

While growth of 4.9% is slightly below some forecasts, industrial output - a
good barometer of state controlled activity - came in above expectations.

 

China's communist party rulers wanted to see ramped up supply, but retail
sales were slower than predicted.

 

Nonetheless it appears to be a broadening recovery with the all-important
services sector rebounding.

 

Domestic tourists and travellers have probably helped the recovery continue
by spending their money at home because global restrictions mean they can't
- yet - go abroad.

 

Travel boom

China's economy should also get a boost this year from "Golden Week" - an
annual holiday in October that sees millions of Chinese travel.

 

Can China's Golden Week still shine brightly?

With international travel severely restricted, millions of Chinese have been
travelling, and spending, domestically instead.

 

There were 637m trips in China over the eight-day holiday which generated
revenue of 466.6bn RMB ($69.6bn, £53.8bn), according to data from its
Ministry of Culture and Tourism.

 

Duty-free sales in the tropical island province of Hainan more than doubled
from last year, soaring by nearly 150% according to the local customs
data.--BBC

 

 

 

Alibaba increases stranglehold on Chinese shoppers

Chinese tech giant Alibaba will take control of leading hypermarket and
supermarket chain Sun Art Retailing.

 

The tech titan is looking to boost its offline shopping services and gain
further ground in China's booming retail market.

 

Alibaba is already China's biggest e-commerce player and owns Taobao, the
world's largest online marketplace.

 

Sun Art is currently controlled by a unit of Mulliez family investments -
one of the richest families in France.

 

Alibaba will pay HK$28bn (US$3.6bn, £2.bn) to raise its stake in the Hong
Kong-listed Sun Art from 21% to 72% according to a company statement.

 

Operator of hypermarket brands Auchan and RT-Mart, Sun Art has 481
hypermarkets and three mid-size supermarkets in China.

 

Alibaba formed a strategic alliance with the supermarket chain in 2017 to
digitise its shops and invested HK$22.4bn in the company at the time.

 

"As the Covid-19 pandemic is accelerating the digitalisation of consumer
lifestyles and enterprise operations, this commitment to Sun Art serves to
strengthen our new retail vision and serve more consumers with a fully
integrated experience," said Daniel Zhang, chairman and chief executive of
Alibaba.

 

All of Sun Art's physical stores have been integrated into Alibaba's
platforms, providing one-hour and half-day on-demand delivery.

 

This is through a partnership with other Alibaba businesses including its
online food delivery service platform Ele.me and Cainiao, a logistics
subsidiary.

 

Alibaba is also becoming a major player in the online payments world, and
its financial technology offshoot Ant Group is expected to list its shares
in China and Hong Kong later this month.

 

It could be the biggest ever initial public offering (IPO) as it is reported
to have a target of $35bn for raising capital.--BBC

 

 

 

 

Coronavirus: People to get emergency help to pay energy bills

Energy regulator Ofgem is introducing new rules from 15 December to help
vulnerable customers who struggle to pay their energy bills this winter.

 

Suppliers will be required to offer emergency credit to customers who cannot
top up prepayment meters.

 

And if customers are in debt, suppliers must put them on "realistic and
sustainable" repayment plans.

 

In March, suppliers voluntarily agreed with the government to support people
affected by the pandemic.

 

Now Ofgem has updated its licence rules to formally require suppliers to
help customers in financial difficulty.

 

The industry watchdog said those in financial distress would get some
breathing space, but ultimately all customers will need to pay for the
energy they use.

 

This follows Ofgem cutting the price cap on default tariffs and prepayment
meters, due to falling gas wholesale prices, which means cheaper energy
bills for millions of people this winter.

 

"Suppliers have stepped up to the challenge of supporting their customers
during the Covid-19 crisis, especially those in vulnerable situations," said
Ofgem's director of retail Philippa Pickford.

 

"Customers who are struggling to pay their bills should contact their
supplier as soon as possible. The extra protections we have announced today
will help ensure they get some breathing space this winter."

 

>From 15 December, suppliers will be required to offer emergency credit or
extra prepayment credit to households in vulnerable circumstances.

 

This could be because people are temporarily unable to afford to top up
their prepayment meters, or are unable to visit their local shop due to
having to self-isolate or having a mobility issue.

 

Energy suppliers need to offer emergency credit to people on prepayment
meters who are temporarily unable to top them up

Ofgem wants to reduce the number of prepayment customers who run out of
credit and end up being without energy.

 

The regulator also wants to make sure that suppliers have appropriate credit
management policies, make proactive contact with customers, and set
repayment rates based on their ability to pay.

 

In September, Citizens Advice estimated that 6 million people in the UK have
fallen behind on paying at least one household bill during the pandemic, and
that many more are on the cusp of being unable to afford to make ends meet.

 

"This raft of new protections from Ofgem should help more people who are
struggling to stay afloat," said Citizen Advice's chief executive Dame
Gillian Guy.

 

"Energy is an essential service and everyone should be confident they can
adequately heat their home and protect their health - especially during a
global pandemic.

 

"We've been pressing for the measures agreed between government and energy
suppliers to help people through the coronavirus pandemic to be extended and
widened, so we're very pleased to see this announcement from the regulator."

 

However, she warned that many consumers will still struggle to "pay for the
basics", even with help from energy suppliers.

 

Dame Gillian added: "Government needs to do more to support those who need
it most, including making the temporary uplift to Universal Credit and
Working Tax Credit permanent."—BBC

 

 

 

Bank of England boss: Best to 'act aggressively'

Bank of England (BoE) boss Andrew Bailey said it is best to act
aggressively, rather than cautiously, in the face of uncertainty.

 

Britain's economy shrank by 20% in the three months to June as it battled
with the coronavirus pandemic, the biggest fall of any large advanced
economy.

 

Mr Bailey warned that there is significant risk of economic growth
continuing to be lower than expected.

 

His remarks come as tighter coronavirus restrictions are imposed across the
UK.

 

The governor told an online event on Sunday that he expected output at the
end of the third quarter to be 10% lower than the end of 2019.

 

"We're operating at an unprecedented level of economic uncertainty," he said
during the video conference for central banks, which was hosted by the Group
of Thirty, a panel of economic policymakers and senior bankers.

 

"Of course, that is heightened now by the return of Covid....the risks
remain very heavily skewed towards the downside."

 

While Mr Bailey said that it was best to act aggressively in the face of
uncertainty, he also touched on the ongoing debate over setting negative
interest rates, which would bring the cost of borrowing below zero.

 

"Our assessment of negative interest rates, from the experience elsewhere,
is that they probably appear to work better in a more wholesale financial
market context, and probably better in a nascent economic upturn," he said.

 

If interest rates are negative, the BoE charges for any deposits it holds on
behalf of the banks. That encourages banks to lend the money to business
rather than deposit it.

 

But with interest rates already low, it's not clear how much negative rates
would help spur new activity.

 

IMF debt worries

During the same event on Sunday, the head of the International Monetary Fund
spoke about growing concerns over sharp increases in debt levels in poorer
countries.

 

In April, officials from the "Group of 20" (G20) countries with the largest
and fastest-growing economies agreed to suspend debt repayments and interest
payments for the world's poorest countries until the end of the year.

 

The G20 Debt Service Suspension Initiative has helped 44 countries defer
$5bn (£3.8bn) repayments to spend on tackling the coronavirus crisis
instead.

 

However, the IMF's managing director Kristalina Georgieva said that urgent
action was still needed in the form of restructuring debts.

 

"We are buying some time, but we have to face reality that there are much
more decisive actions ahead of us," she said. "Doing too little too late is
costly to debtors, costly also to creditors."

 

She added that global debt levels were predicted to reach 100% of gross
domestic product in 2021.

 

In early October, the IMF said the global economy is still in deep
recession, despite the fact that it has predicted a global economic
contraction of 4.4%, which is more moderate than it envisioned in June.

 

It warned that most economies will suffer lasting damage, and that extreme
poverty is likely to rise for the first time in more than 20 years.—BBC

 

 

 

Firms urged to get ready for new EU relationship

Companies need to step up preparations so they are not "caught out" by new
post-Brexit trade rules, the government says.

 

A public information campaign titled "Time is running out" will urge firms
to focus on the 1 January deadline.

 

However, it is not yet clear exactly what the trading relationship between
the UK and the EU will be.

 

A group representing British businesses said it was no surprise companies
were struggling to prepare.

 

"Many firms will be tired of posturing, cliff edges and deadlines, while
others are still grappling with fundamental challenges as a result of the
pandemic," said Adam Marshall, director of the British Chambers of Commerce
(BCC).

 

"More businesses will undoubtedly step up preparations for change over the
coming weeks, but many are still facing unanswered Brexit questions that
have a big impact on their day-to-day operations."

 

In just over eight weeks' time, the UK will be outside the EU single market
and customs union.

 

Due to this, firms will need to ensure they adhere to new customs
procedures, visa, work permits, and immigration rules.

 

If Britain were to leave the EU at the end of the year without a specific
agreement on its trading relationship, firms would be faced with new tariffs
and quotas on top of the additional red tape, raising the costs of imports
and exports.

 

"Make no mistake, there are changes coming in just 75 days and time is
running out for businesses to act," said cabinet office minister Michael
Gove.

 

"It is on all of us to put in the work now so that we can embrace the new
opportunities available to an independent trading nation with control of its
own borders, territorial waters and laws."

 

'75 days to go'

Downing Street said on Friday that official negotiations over a trade deal
were "over", without reaching a deal and that the UK should prepare to leave
the EU on what it dubbed Australia-style terms.

 

However, Mr Gove told the BBC on Sunday that the door was still "ajar" to
further talks, if the EU was ready to significantly change its position.

 

 

Michael Gove: "We hope the EU will change their position"

The government said that in light of the impact of coronavirus on
businesses' ability to prepare, new border controls were being introduced in
three stages up until 1 July 2021.

 

However, there are definite actions firms need to take now, including:

 

·         Being ready for new customs procedures for imports and exports

·         Checking if you need a visa or work permit for travel to the EU

·         Preparation for the new immigration system

·         Ensuring you can continue to use any personal data you receive
from European countries

·         Checking qualifications are still valid for those providing
services to clients within the EU

Businesses are able to get a personalised summary of the actions they need
to take at gov.uk/transition, the government said.

 

HM Revenue and Customs is writing to 200,000 firms which trade with the EU,
to set out the new customs and tax rules coming into place and how to deal
with them.--BBC

 

 

 

Irish regulator probes Facebook's handling of children's data on Instagram

(Reuters) - Ireland's Data Protection Commission (DPC) has launched two
inquiries into Facebook Inc FB.O after concerns were raised about the social
network giant's handling of children's personal data on Instagram.

 

 

The DPC, the main data privacy regulator in the European Union, received
complaints from individuals and had identified “potential concerns” in
relation to the processing of children’s personal data on Instagram, Deputy
Commissioner Graham Doyle told Reuters in an emailed statement.

 

Both inquiries were launched last month, Doyle said in the statement.

 

Facebook did not immediately respond when contacted by Reuters on Sunday.

 

The Telegraph, which first reported the inquiry, said Instagram made the
email addresses and phone numbers of users under 18 public.

 

The Irish regulator launched its probe following a complaint by David Stier,
a U.S. data scientist, the Telegraph added.

 

The first inquiry looks to establish if Facebook has the legal basis to
process the data and whether it employs adequate protections and/or
restrictions on Instagram.

 

“This inquiry will also consider whether Facebook meets its obligations as a
data controller with regard to transparency requirements in its provision of
Instagram to children,” Doyle said.

 

Instagram’s profile and account settings will be the focus of the second
inquiry, examining whether the social media company is adhering to the
regulator’s data protection requirements.

 

Ireland hosts the European headquarters of a number of U.S. technology
firms, making the DPC the EU’s lead regulator under the bloc’s General Data
Protection Regulation’s “One Stop Shop” regime introduced in 2018.

 

The new rules give regulators the power to impose fines for violations of up
to 4% of a company’s global revenue or 20 million euros ($22 million),
whichever is higher.

 

 

 

 

Japan can open probe into any merger involving Fitbit - new antitrust
watchdog head

TOKYO (Reuters) - Japan's antitrust watchdog can open a probe into any
merger or business tie-up involving fitness tracker maker Fitbit FIT.N if
the size of such deals was big enough, Kazuyuki Furuya, the new chairman of
the Fair Trade Commission (FTC), said on Monday.

 

EU antitrust regulators in August launched an investigation into a $2.1
billion deal by Alphabet GOOGL.O unit Google's bid to buy Fitbit, a move
aimed at taking on Apple AAPL.O and Samsung 005930.KS in the wearable
technology market.

 

“If the size of any merger or business tie-up is big, we can launch an
anti-monopoly investigation into the buyer’s process of acquiring a start-up
(like Fitbit),” Furuya told Reuters in an interview.

 

“We’re closely watching developments including in Europe.”

 

 

 

Ant Group gets Chinese nod for Hong Kong leg of $35 billion dual listing -
sources

HONG KONG (Reuters) - Ant Group Co Ltd has received approval from China’s
securities regulator for the Hong Kong leg of its roughly $35 billion dual
listing, two people with knowledge of the matter told Reuters on Monday.

 

The Chinese financial technology firm plans to list in Hong Kong and on
Shanghai's STAR Market simultaneously in what could be the world's largest
initial public offering (IPO), surpassing Saudi Aramco's 2222.SE $29.4
billion record set in December.

 

The firm plans to seek listing approval from Hong Kong’s stock exchange on
Monday, said one of the people, who declined to be identified as the matter
was not yet public.

 

Ant, backed by Chinese e-commerce major Alibaba Group Holding Ltd
BABA.N9988.HK, declined to comment.

 

Refinitiv publication IFR reported the approval from the China Securities
Regulatory Commission (CSRC) earlier on Monday. It also said the CSRC is set
to approve Ant’s Star Market IPO this week.

 

Ant plans to start a brief pre-marketing period this week before opening
order books next week, IFR reported, saying Ant’s shares are likely to start
trading “a few days” after the Nov. 3 U.S. presidential election.

 

Ant originally aimed to meet Hong Kong’s bourse on Sept. 24 and launch the
IPO after the week-long Chinese National Day holiday that ended on Oct. 8,
sources previously told Reuters.

 

Last week, sources said the CSRC was probing a potential conflict of
interest in the planned listing, delaying approval.

 

The regulator was looking into the role of Alipay, Ant’s flagship payment
platform, as retail investors’ only third-party channel to buy into five
Chinese funds investing in the IPO.

 

Ant aims to sell 10% to 15% of its enlarged share capital in the IPO, split
evenly between Hong Kong and Shanghai. It does not plan to offer a
cornerstone tranche in Hong Kong in anticipation of strong demand from
institutional investors.

 

 

 

 

American Airlines plans to return Boeing 737 Max to service at year-end

WASHINGTON (Reuters) - American Airlines Group AAL.O plans to return Boeing
BA.N 737 Max jets to service for passenger flights by the end of this year
depending on certification of the aircraft from the Federal Aviation
Administration (FAA), it said on Sunday.

 

The airline said it will operate a daily 737 Max flight between Miami and
New York from Dec. 29 to Jan. 4, with flights available for booking from
Oct. 24.

 

“We remain in contact with the FAA and Boeing on the certification process
and we’ll continue to update our plans based on when the aircraft is
certified,” the company said in an statement.

 

The FAA in a statement Sunday reiterated it has no timeline for approving
the plane’s return to service and said it “will lift the grounding order
only after FAA safety experts are satisfied that the aircraft meets
certification standards.”

 

The Boeing 737 MAX has been grounded since March 2019 after two fatal
crashes killed 346 people. The FAA expected to lift its grounding order
around mid-November, sources briefed on the matter previously told Reuters,
but that date could still slip.

 

American Airlines said it will make customers aware that they are flying on
a 737 MAX.

 

The FAA in early October issued a draft report on revised training
procedures for the MAX, which is open for public comment through Nov. 2.

 

 

 

Cogeco's top investor rejects $8.4 billion revised bid from Altice USA

(Reuters) - Altice USA Inc's ATUS.N C$11.1 billion ($8.43 billion) revised
offer to acquire Cogeco CGO.TO was rejected on Sunday by the Canadian cable
company's top investor, the Audet family.

 

Altice USA Inc said it had sweetened its unsolicited offer to acquire Cogeco
by adding a premium for shares held by the Audet family, which had rejected
the previous offer.

 

“As we did on September 2nd, 2020, following the announcement of their first
unsolicited proposal, members of the Audet family unanimously reject this
further proposal,” Louis Audet, president of Gestion Audem said in a
statement. “We repeat today that this is not a negotiating strategy, but a
definitive refusal. We are not interested in selling our shares.”

 

Gestion Audem is the holding company of the Audet family that holds 69% of
the voting share of Cogeco.

 

Altice offered C$11.1 billion to acquire Cogeco, up from the C$10.3 billion
bid that was rejected by the Audet family last month.

 

New York-based Altice said the revised offer included C$900 million to the
Audet family for their ownership interests, from C$800 million previously.

 

It also revised its offer to Cogeco's second-largest shareholder, Rogers
Communications Inc RCIb.TO, to sell it all of Cogeco's Canadian assets for
C$5.2 billion.

 

Upon completion of the overall transaction, Altice USA would own all the
U.S. assets of Cogeco and Rogers would own the Canadian assets, Altice said
in a statement.

 

Altice said it would withdraw its revised offer if a deal was not reached by
Nov. 18.

 

($1 = 1.3173 Canadian dollars)

 

 

 

 

Toshiba targets $3 billion revenue in quantum cryptography by 2030

TOKYO (Reuters) - Toshiba Corp 6502.T said on Monday it aims to generate $3
billion in revenue from its advanced cryptographic technology for data
protection by 2030, as the Japanese sprawling conglomerate scrambles to find
future growth drivers.

 

The cyber security technology, called quantum key distribution (QKD),
leverages the nature of quantum physics to provide two remote parties with
cryptographic keys that are immune to cyberattacks driven by quantum
computers.

 

Toshiba expects the global QKD market to grow to $12 billion in 10 years
with the advance of quantum computers, whose massive computational power
could easily decipher conventional math-based cryptographic keys commonly
used in finance, defence and health care.

 

The company is hoping to tap global demand for advanced cryptographic
technologies as cyber security has come to the forefront of national
defence. China is aggressively expanding network infrastructure for QKD,
including quantum satellites that relay quantum signals.

 

The company said it has teamed up with Verizon Communications Inc VZ.N in
the United States and BT Group BT.L in Britain in pilot QKD projects, and is
in talks with another telecommunications carrier in South Korea.

 

Since a crisis stemming from the bankruptcy of the U.S. nuclear power
business in 2017, Toshiba has conducted a series of restructuring steps,
including the sale of its laptop and television set businesses.

 

It is now focusing on public infrastructure businesses that are resilient to
a global economic slump driven by the coronavirus outbreak.

 

 

 

 

Mining billionaire Forrest buys famed Australian bootmaker RM Williams

SYDNEY (Reuters) - Australian mining billionaire Andrew Forrest said his
private company bought bootmaker R.M. Williams from a fund backed by French
fashion giant LVMH Moet Hennessy Louis Vuitton SE LVMH.PA, returning
ownership of the famed fashion label to its home country after six years.

 

In a statement, the Fortescue Metals Group Ltd FMG.AX founder and major
shareholder said he was "incredibly proud and humbled" to bring back the
manufacturing icon which had "a long and proud history of high-quality
Australian craftsmanship".

 

Forrest did not disclose a price but the Australian Financial Review
reported it was about A$190 million ($135 million). That would represent a
mark-down from the roughly A$500 million that local media reported was R.M.
Williams’s valuation when LVMH-backed private equity firm L Catterton put
the asset up for sale in 2019.

 

When L Catterton took over R.M. Williams in 2014, the Outback-themed company
was valued at about A$104 million. The unit of the French fashion giant was
not immediately available for comment on Monday.

 

Fashion retailers around the world have experienced a sharp decline in sales
since the COVID-19 outbreak prompted border closures and stay-home orders as
governments attempted to slow the spread of the virus.

 

For 88-year-old R.M. Williams, which has 900 staff in Australia, that meant
temporarily closing its Adelaide factory. It has since reopened most of its
68 retail outlets which are largely on the country’s east coast.

 

Australian swimsuit maker Seafolly Pty Ltd, also backed by LVMH, appointed
administrators in June, citing a sales downturn from the coronavirus.

 

 

 

 

China passes export-control law following U.S. moves

SHANGHAI (Reuters) - China passed a law restricting exports of controlled
items, allowing the government to act against countries that abuse export
controls in a way that harm’s China’s interests, state media said.

 

The Xinhua news report late on Saturday did not name any target countries,
but the United States last month angered Beijing with curbs on exports to
Semiconductor Manufacturing International Corp, China’s biggest chipmaker,
and it has taken various steps against Huawei Technologies Co and other
companies.

 

China and the United States have clashed over issues including trade, human
rights, technology and the new coronavirus, which was first detected in
China.

 

The new Chinese law, passed on Saturday by the National People’s Congress
Standing Committee, the country’s top legislative body, will take effect on
Dec. 1, Xinhua said.

 

Controlled items include military and nuclear products, as well as other
goods, technologies and services and relevant data, according to a statement
on the National People’s Congress website.

 

It said the law was “formulated for the purpose of safeguarding national
security and interests.”

 

In August, China’s commerce ministry issued a revised list of technologies
that are banned or restricted for export.

 

 

 

 

Asian markets jump on vaccine, U.S. aid hopes; gains capped by China data

SYDNEY (Reuters) - Asian markets advanced toward a recent 2-1/2-year peak on
Monday powered by hopes of a U.S fiscal package and expectations of a
coronavirus vaccine by the end of this year, though weaker-than-expected
Chinese data capped gains.

 

 

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS
climbed 0.6% for its second straight day of gains, paring back slightly
following third-quarter gross domestic product data from China.

 

The index has risen in eight of the last 10 sessions amid a rally in risk
assets buoyed by hopes of a coronavirus vaccine and expectations of a
so-called “blue wave”, which would see the Democrats claim victory in
November’s elections.

 

Chinese shares started higher though the blue-chip index .CSI300 pared gains
after China's GDP data missed forecasts, though separate monthly indicators
pointed to an expansion in economic activity.

 

China’s gross domestic product (GDP) grew 4.9% in July-September from a year
earlier, slower than the median forecast of 5.2%.

 

Monthly indicators beat forecasts - industrial output accelerated 6.9% in
September from a year earlier, when analysts were looking for a 5.8% gain
from a 5.6% rise in August. Retail sales edged up 3.3% last month from a
year earlier against expectations for 1.8% growth.

 

“The rebound in Q3 GDP was less strong than expected, but was still a decent
4.9% YoY. September data beat expectations, suggesting a pickup in momentum
towards the latter part of Q3,” said Frances Cheung, head of macro strategy
for Asia at Westpac in Singapore.

 

“The pickup in momentum was broad-based, which bodes well for the Q4
outlook.”

 

Japan's Nikkei .N225 and Australia's benchmark index .AXJO were each up
1.1%.

 

Boosting overall sentiment, drugmaker Pfizer Inc PFE.N said on Friday it
could have a coronavirus vaccine ready in the United States by the end of
this year.

 

E-Mini futures for the S&P 500 ESc1 jumped 0.6% in Asian trading after House
Speaker Nancy Pelosi said on Sunday she was optimistic legislation on a
wide-ranging coronavirus relief package could be pushed through before the
election.

 

But with her negotiating partner, Treasury Secretary Steven Mnuchin, in the
Middle East until Tuesday, such a timeframe would seem to be overly
optimistic, analysts said.

 

Investors are also concerned about rising coronavirus cases to help curb the
spread of the disease.

 

Global coronavirus cases rose by more than 400,000 for the first time late
on Friday, a record one-day increase as much of Europe enacts new
restrictions to curb the outbreak.

 

Later in the week, key risk events include minutes of Australia’s central
bank meeting, the final U.S. presidential debate and global manufacturing
indicators.

 

Action in currencies was muted with the U.S. dollar, usually perceived as a
safe-haven asset, =USD flat at 93.696 against a basket of six major
currencies. [USD/]

 

The euro EUR= slightly weaker at $1.1712.

 

Sterling was slightly higher though it was still near two-week lows after UK
Prime Minister Boris Johnson told businesses to get ready for a no-deal
Brexit in case negotiations with the European Union fail to produce a free
trade agreement.

 

“EU-UK trade talks are flirting with collapse,” ANZ economists said.

 

“UK Prime Minister Johnson said the UK needs to prepare for a no-deal
outcome, as both sides cannot agree on a Canada-style FTA. Talks resume in
London on Monday, but without the political willingness to shift ground,
there is little the negotiators can achieve.”

 

In commodities, Brent crude futures LCOc1 slipped 14 cents to $42.79 a
barrel, and U.S. West Texas Intermediate (WTI) crude futures CLC1 fell 14
cents to $40.74 a barrel.

 

Spot gold XAU= was a shade firmer at $1,900.8 an ounce.

 

 

 

Nigerian Traders Protest Ghana's Delay to Reopen Shops

Abuja — The Nigeria Union of Traders Association in Ghana (NUTAG) embarked
on a protest at the weekend over Ghanaian authorities' delay to reopen shops
owned by Nigerians in that country.

 

The President of NUTAG, Mr. Chukwuemeka Nnaji, who led the protest told the
News Agency of Nigeria (NAN) in a telephone interview that Ghanaian
authorities refused to reopen their shops since 2019.

 

He noted that the Ghanaian authorities' refusal to open the traders' shops
was despite meetings between top officials of both governments of Nigeria
and Ghana.

 

He said the protest was to press the Ghanaian authorities to reopen their
shops, to enable them to tackle economic challenges amid COVID-19.

 

 

According to him, the shops locked for over one year should be reopened to
enable the traders to return to normal businesses.

 

He urged the Nigerian government to evacuate willing traders to Nigeria.

 

Nnaji said: "I am in talks in with my leader, Mr. Ken Okoha, National
President of Nigerian Traders, and he has assured us that he will take our
case up to the highest level in Nigeria.

 

"In fact, plans are on for him to move to institutions that are related to
trade; I have known him for five years now and I know what he is able to do.

 

"I am rest assured that the leadership of Nigerian traders are working
towards achieving this goal; some of you, who still have funds, should also
continue to help other traders.

 

 

"Be law-abiding citizens, COVID-19 is still on and lots of businesses are
affected; many of us are living from hand to mouth due to the downturn.

 

"If you do not have anything to do, stay at home; rest assured that at the
end of October, if we are not evacuated, we will keep ourselves at the
border."

 

Receiving the traders, Charge de Affair of Nigeria High Commission in Ghana,
Mrs. Easter Arewa, said that the government would remain committed to
protecting Nigeria citizens.

 

According to her, the letter by Nigerian traders has been received and their
message will be conveyed to the highest authority.

 

She said: "Government is not resting on your case; it is because of you Femi
Gbajabiamila, Speaker of House of Representatives, came to Ghana.

 

"Likewise, Vice President Yemi Osinbajo was here. In spite of his busy
schedule, he came here and met with the leadership of NUTAG. He promised to
continue with the cause on his return to Abuja.

 

"He has not failed; very soon, your situation will be addressed because a
hungry man is an angry man. It is not nice to hear that in a brotherly
country like Ghana, you are being treated like this.

 

"We have Ghanaians in Nigeria too and they are treated as brothers, so do
not worry. It is a government-to-government dialogue".-This Day.

 

 

 

 

Nigeria: 302 Nigerians, SERAP Sue Buhari Over Hike in Electricity Tariff,
Fuel Price

Socio-Economic Rights and Accountability Project (SERAP) and 302 Nigerians
have filed a lawsuit against President Muhammadu Buhari and the leadership
of the National Assembly over the recent hike in electricity tariff and fuel
price.

 

This was made known in a statement by SERAP's Deputy Director, Mr. Kolawole
Oluwadare, titled 'SERAP sues Buhari, National Assembly, wants court to
declare electricity tariff, fuel price hike illegal'.

 

The federal government had on September 1 announced a total removal of
subsidy from the price of petrol and thereby pushed the price per litre of
petrol to N151.

 

 

On August 19, 2020, the federal government also announced an increment in
the electricity tariff per kilowatt to be paid by Nigerians.

 

The statement noted that the Vice President Yemi Osinbajo; Senate President,
Dr. Ahmad Lawan, Speaker of House of Representatives, Mr. Femi Gbajabiamila,
and the Revenue Mobilisation, Allocation and Fiscal Commission, were joined
in the suit as defendants.

 

In the suit number, FHC/ABJ/CS/330/2020, filed last week at the Federal High
Court, Abuja, they are asking the court to "declare illegal,
unconstitutional and unfair the recent hike in electricity tariff and fuel
price because top-level public officers cannot continue to receive the same
salaries and allowances and spend public money to finance a life of luxury
for themselves while asking poor Nigerians to make sacrifices.

 

"An order directing and compelling the RMAFC to cut the salaries, allowances
and other emoluments payable to President Buhari, Professor Osinbajo, Lawan
and Gbajabiamila, in line with the current economic realities, and
principles of justice, fairness, equality, and non-discrimination."-This
Day.

 

 

 

Sibanye-Stillwater says “downstream exposure” will be part of battery metals
deal

NEAL Froneman put meat on the bones of Sibanye-Stillwater’s plans to enter
the battery metals industry, saying a transaction would expose it to the
downstream market, but would not involve a major transaction that typifies
its growth so far.

 

“The transition into a platinum group metals (PGMs) producer was designed to
be a full, quick step process, and material in terms of the size of the PGM
business we wanted to create,” he said, referring to the firm’s R4.5bn
takeover of Lonmin last year or the earlier acquisition of assets from Anglo
American Platinum (Amplats).

 

The company is now the world’s largest platinum group metal producer.
Including its gold mines, it employs about 80,000 people and is the second
largest employer in South Africa after the country’s government.

 

“Battery metals is going to be very different. It is going to be far more
strategic, and it is going to require partnerships” even though the firm had
spent 18 months sizing up potential acquisitions, said Froneman.

 

“It will not be same type of strategy where we aim to be number one, two or
three in battery metals. It will be far more selective. It is probably will
involve quite a lot more downstream exposure for supply chain reasons.”

 

Froneman was speaking today at the Financial Times Commodities Mining
Summit.

 

There was also a possibility the company could dovetail a new investment
with a recently stated interest in growing the firm’s gold business.
Currently, Sibanye-Stillwater mines all of its gold from South Africa, but
Froneman has been critical of the country’s investment climate, saying he
couldn’t sanction further investments there.

 

But the occurrence of gold with copper – a metal Froneman listed as a metal
of interest – in geologies known as porphyries, could open up an avenue to
invest internationally in a precious metal other than PGMs.
Sibanye-Stillwater bought US-based miner Stillwater Mining in 2018 for
$2.2bn.

 

Listing other metals in which Sibanye-Stillwater was interested, Froneman
mentioned lithium, nickel, and copper. “You don’t have to stretch your mind
too far from gold/copper type relationships. Having some exposure to copper
is important. Cobalt is interesting but not sure it’s part of the
long-term.”

 

Sibanye-Stillwater would “make moves” in the next six to nine months.

 

The company was on the end of harsh treatment at the time of the Stillwater
bid because it suspended dividend payments. The company recently reinstated
the dividend and has since said it would not sacrifice shareholder payouts
for growth in the future.-mininmx

 

 

 

 

Glasenberg says Glencore considering raising target on Scope 3 emissions
control

GLENCORE may raise its 15-year Scope 3 carbon emissions reduction target
when it convenes an investor update on December 4, said CEO, Ivan
Glasenberg.

 

In February, Glencore committed to a Scope 3 emissions reduction target of
30% by 2035.

 

Speaking at the Financial Times Commodities Mining Summit today, Glasenberg
said: “We are reviewing all of our coal operations and we’ve got that figure
today of a 30% reduction by 2035. We are doing a bit of work on it and we
will see where we can get by 4 December on the Scope 3 emissions overall”.

 

 

According to the Greenhouse Gas (GHG) Protocol Corporate Standard, emitters
have to control and reduce their GHGs, the so-called Scope 1 of the
standard, as well as the emissions of their suppliers in a Scope 2 level of
scrutiny. The more controversial element of the protocol is managing the
emissions of end-users, or Scope 3.

 

In 2018, Glencore said it would cap thermal and metallurgical coal
production at 150 million tons a year following discussions with
shareholders over two-years. Glasenberg contended today that his company was
the only mining firm to put a firm figure to Scope 3 emissions reduction.

 

But he stopped short of supporting the sale of the group’s coal assets
whilst acknowledging Glencore would “seriously look” at its portfolio if it
caused it to lose investors.

 

He was also critical of rival company transactions to rid themselves of
thermal coal in a trade sale or demerger, as recently proposed by Anglo
American regarding its South African thermal coal mines. South32, the
Perth-headquartered company, is also on schedule to complete the sale of its
South African thermal coal business by year-end.

 

This would merely ‘hand on’ the problem and potentially intensify carbon
emissions as it would create the resources industry equivalent of a tobacco
company, said Glasenberg. “It will have investors who are prepared to own it
and then it will just expand. Then you won’t be helping the world with the
CO2 emissions.”

 

“I think he’s absolutely right,” said Mark Cutifani, CEO of Anglo American
when asked to respond to Glasenberg’s comments. Anglo American sold its
domestic thermal coal mines in South Africa during 2018 to Seriti Resources,
run by Mike Teke, a former CEO of Optimum Coal Holdings, a company in which
Glencore was once invested.

 

“We made the point that a responsible transition meant you didn’t just sell
assets on a whim,” said Cutifani. “We halved our footprint by selling to
responsible users. The [South African] government was happy, the local
communities were happy, and we worked with our customers to see if they were
okay,” said Cutifani.

 

In announcing a demerger of the export focused thermal coal assets in South
Africa, it had taken “
 a lot of work with the government and to make sure
everyone’s responsible. At the end of the day, shareholders have to make
choices about the companies they are willing to invest in.

 

“We’ve made a decision: thermal coal this year is 1% of our EBITDA. For that
noise, it’s better off we transition into those commodities that we think
will really provide the returns for our shareholders,” he said.-mininmx

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2020

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Falgold

EGM

1st Floor, KPMG Building, 133 Josiah Tongogara Avenue, Bulawayo

29/10/2020 | 10:00 am

 


Afdis

AGM

virtual

13/11/2020 | 12:20pm

 


Zimbabwe

National Unity Day

Zimbabwe

22/12/2020

 


 

Christmas Day

 

25/12/2020

 


 

Boxing Day

 

26/12/2020

 


 

New Year’s Day

 

01/01/2021

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


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

 


 

 

 

 

 

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