Major International Business Headlines Brief::: 23 October 2020

Fri Oct 23 08:24:07 CAT 2020

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Major International Business Headlines Brief::: 23 October 2020

·         Goldman Sachs to pay $3bn over 1MDB corruption    scandal

·         Facebook and Twitter chiefs ordered to testify over Biden article

·          Huawei 'forging forward' despite Trump sanctions

·          New government Covid scheme to pay up to half of wages

·         Huawei Mate 40 phones launch despite chip freeze

·          Angolan Diamond Exchange to Open in 2021

·          Cote d'Ivoire: Serving Up Ivorian Cashew Nuts

·          Southern Africa: Why SADC, Countries Still 'Oppose' Rhino   Horn Trade

·          Mozambique: Sharp Fall in Transit Trade in Maputo Port

·          Mozambique: Central Bank Keeps Interest Rates Unchanged

·          Egypt: Sisi Gives Green Light to Petroleum Minister to Amend Oil Exploration Agreement

·          Uganda: Mbale, Soroti, Tororo Get Shs40b to Upgrade Roads

·         Global stocks hold tight ranges as U.S. election caution sets in

·         Wells Fargo explores sale of asset management business - sources

·         Intel's margins tumble as customers shift to cheaper chips, shares slide 10%

·         Walmart sues federal government over opioid case

Goldman Sachs to pay $3bn over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) to end a probe of its role in the 1MDB corruption scandal.

The bank's Malaysian subsidiary also admitted in US court that it had paid more than $1bn in bribes to win work raising money for the Malaysian state-owned wealth fund.

US officials said the record settlement reflected Goldman's "central" role in a "massive corruption scheme".

Goldman admitted it had fallen "short", calling it an "institutional failure".

In all, the investment bank is due to pay about $5bn in penalties - about two thirds of its 2019 profits - to regulators around the world, including in the UK, to resolve cases that have severely tarnished the firm's reputation.

Goldman's board also said it will recoup or withhold $174m in compensation awarded to executives, including retired boss Lloyd Blankfein, under whose watch the scandal happened.

"The board views the 1MDB matter as an institutional failure, inconsistent with the high expectations it has for the firm," it said in a statement.

What was the 1MDB scandal?

The 1MDB scheme was a global web of fraud and corruption, in which billions of dollars ostensibly raised for public development projects in Malaysia instead landed in private pockets, including those of the country's former prime minister Najib Razak.

Authorities in Asia, the US and Europe have spent years tracking down cash and assets paid for with money stolen from the Malaysian fund, including property, jewellery and art.

In announcing the settlement on Thursday, US Department of Justice officials said Goldman Sachs had enabled a scheme that caused "significant harm".

"That harm was borne principally and in the first instance by the people of Malaysia, who saw a fund created to benefit them... instead turned into a piggybank for corrupt public officials and their cronies," said Brian Rabbitt, acting assistant attorney general of the Justice Department's criminal division.

In July, Najib was found guilty in Malaysia on all seven counts in the first of several multi-million dollar corruption trials and sentenced to 12 years in jail.

He had pleaded not guilty to the charges of criminal breach of trust, money laundering and abuse of power and is appealing the decision.

What was Goldman's role?

Probes of Goldman Sachs focused on its help raising $6.5bn in 2012 and 2013 for the fund formally known as 1Malaysia Development Bhd (1MDB), work authorities said earned the firm more than $600m.

Goldman had long blamed rogue employees, asserting it had no idea the money it helped raise would be diverted from planned development projects within Malaysia.

But on Thursday, the bank admitted that its Malaysian unit had "knowingly and willingly" paid bribes to foreign officials and that it had ignored red flags that should have alerted higher-ups to problems with the deal.

It agreed to return the $600m to Malaysia and pay roughly $2.3bn to regulators in the US, UK, Hong Kong and Singapore.

The settlement with the US charged the parent company with bribery violations, but authorities agreed to defer prosecution. That move allows Goldman to avoid a criminal conviction, a black mark that would have forced some clients to end work with the fund.

Earlier, one former Goldman Sachs partner, Tim Leissner, pleaded guilty in the US to conspiring to launder money and violating foreign bribery laws. Another executive is awaiting trial on foreign bribery offenses.

"We have to acknowledge where our firm fell short," chief executive David Solomon said. "While many good people worked on these transactions and tried to do the right thing, we recognise that we did not adequately address red flags and scrutinise the representations of certain members of the deal team... as effectively as we should have."

What other settlements have been announced?

Three months ago, Goldman Sachs reached a $3.9bn settlement with the Malaysian government for its role in the corruption scandal.

The settlement included a $2.5bn cash payout by Goldman, while the investment bank said it would guarantee that the government would receive at least $1.4bn from money recovered from the scheme.

The deal resolved charges in Malaysia that Goldman had misled investors.

Hong Kong regulators on Thursday said they were due to receive $350m in fines. Goldman has also agreed to pay $126m in penalties in the UK and $122m in penalties in Singapore.—BBC

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

Facebook and Twitter chiefs ordered to testify over Biden article

Facebook's Mark Zuckerberg and Twitter's Jack Dorsey will be ordered to testify over alleged censorship of a controversial New York Post article.

The article revealed emails and photographs that the New York Post claimed were copied from the laptop of Joe Biden's son, Hunter Biden.

Twitter said the story had violated its "hacked materials" policy, but later changed its stance.

Facebook had limited its spread in the news feed while it was fact-checked.

The move prompted accusations of censorship and pro-Biden bias from Republican lawmakers.

Now, 12 Republicans on the Senate Judiciary Committee have voted to compel the two chief executives to testify about their handling of the matter.

Ten democrats sat out the session in protest over an earlier vote on Amy Coney Barrett's Supreme Court nomination.

Mr Dorsey and Mr Zuckerberg are already due to appear before the Senate Commerce Committee next week, alongside Google chief executive Sundar Pichai, to give evidence over claims of anti-conservative bias.

Republican Senator Ted Cruz, who sits on the Senate Judiciary Committee, tweeted that "big tech CEOs are drunk on power and must be held accountable".

"We will get answers for the American people," he wrote.

No date for a hearing has been set.

Controversial limits

The New York Post's article focused on an email from a representative of a Ukrainian energy company, sent in April 2015, apparently thanking Hunter Biden for an invite to meet Joe Biden in Washington DC.

Joe Biden was vice-president at the time, and his son was on the board of directors for the energy firm.

There is no evidence that such a meeting ever took place, and previous investigations have never found evidence of wrongdoing by the former vice-president, despite claims form his political opponents.

The New York Post article also contained screenshots that showed private email addresses.

Twitter was criticised for blocking people from sharing the article. It later said that it had done so because the article violated its policies on publishing private information and "hacked materials".

Mr Dorsey later acknowledged it had not properly communicated its decision. It later changed its "hacked materials" policy.

Facebook limited the spread of the article in its news feed, while the piece was fact-checked by third-party organisations.

It is unusual for Facebook and Twitter to limit the spread of an article from an established, mainstream news outlet in this way.

Political anger

The restrictions, coming in the run-up to the US presidential election on 3 November, fuelled anger from Mr Biden's political rivals over the alleged censorship of Republicans.

President Trump has proposed removing a legal protection from social networks, treating them as publishers if they fact-check or restrict material.

Mr Biden has also suggested removing those protections - but for different reasons. He has criticised the spread of misinformation online with little consequences for the companies facilitating it.

Democrats voted with their Republican colleagues earlier this month, ordering the bosses of Twitter, Facebook, and Google to face questions.

Despite the Democrats' absence from the vote this time, Republican committee chairman Lindsey Graham said he believed there was "a lot of interest on the other side" in getting "the social media folks here to answer questions".-BBC

Huawei 'forging forward' despite Trump sanctions

Chinese phone maker Huawei said it was doing its best "to survive and forge forward" despite US sanctions.

Huawei is one of a handful of Chinese tech firms targeted by Donald Trump on the grounds of national security.

The phone maker had been busy stockpiling its supply of microchips before a US trade ban came into effect in September.

On Friday, it said revenues for the first three quarters of 2020 were 9.9% higher than the same period last year.

But Huawei said its ability to find component parts such as microchips has been "put under intense pressure and its production and operations saw increasing difficulties".

Disruptions in manufacturing caused by Covid-19 were also to blame.

During January to September this year, Huawei generated 671.3bn Chinese Yuan ($100bn; £77bn) in revenue.

Chips down

The US government put Shenzhen-based Huawei on its blacklist last year and put pressure on other countries to exclude Huawei from their next-generation 5G networks.

The US now requires any company that sells Huawei products made anywhere with US technology to obtain a licence.

Huawei said it was hopeful some chipmakers will apply for licences and was willing to work with partners to replenish its supplies.

Going forward, Huawei said it would focus on technologies such as Artificial Intelligence (AI) and cloud "and unleash the value of 5G networks along with its partners".

On Thursday, Huawei unveiled its Mate 40 smartphones, claiming they feature a more "sophisticated" processor than Apple's forthcoming iPhones.--BBC

New government Covid scheme to pay up to half of wages

The chancellor has unveiled increased support for jobs and workers hit by Covid restrictions after growing clamour from firms in tier two areas.

Rishi Sunak announced big changes to the Job Support Scheme (JSS) - set to replace furlough in November.

He told the Commons that even businesses not forced to shut were facing "profound economic uncertainty".

Under the revised scheme, employers will pay less and staff can work fewer hours before they qualify.

At the same time, the taxpayer subsidy has been doubled.

At an afternoon news conference, Prime Minister Boris Johnson thanked the chancellor for introducing measures that "will protect people's livelihoods".

But he warned that the UK would face "many thousands more deaths" if it put the economy before health.

Why is this happening?

Businesses in tier two areas, particularly in the hospitality sector, had complained that they would be better off if they were under tier three restrictions.

They argued that although they would be forced to close, they would benefit from greater government support.

One prominent chef, Yotam Ottolenghi, had said conditions for his restaurants were "terrible" since tier two restrictions were applied to London, adding: "We are on our knees now."

In response to such arguments, Mr Sunak has now changed the terms of the JSS. Referring to those businesses, he said: "It is clear that they require further economic support."

How does the new plan work in detail?

Instead of a minimum requirement of paying 55% of wages for a third of hours, as announced last month at the launch of the Winter Economic Plan, employers will have to pay for a minimum of 20% of usual hours worked, and 5% of hours not worked.

The government will now fund 62% of the wages for hours not worked. This more than doubles the maximum payment to £1,541.75 a month. In the most generous case, the taxpayer will now go from funding 22% of wages to just under half.

The scheme will, as before, be open to all small businesses and larger businesses that can show an impact on revenues.

It is aimed at addressing the gap in support for businesses in tier two restrictions, such as London and Birmingham, but is not explicitly tied to that status, and is available across the UK.

Noel Hutchinson, director of Poole-based powerboat experience firm Get Lost Sailing, is one small businessman who is feeling overlooked by the new measures.

His firm is in a tier one area and so is not receiving any support, but he is seeing far fewer customers as a result of the virus.

"Whether or not businesses are in tier one, two or three, they are all being massively affected by the virus," he says.

"A hospitality and tourism business such as ours depends on out-of-town visitors and these people are no longer travelling. Our bookings have slowed massively."

Mr Hutchinson feels that a national lockdown would serve him better, since any government support would then be distributed across the country.

"It would be better for our industry if the whole country was locked down at once and every business in receipt of a fair proportion of the support packages."

How will it work outside England?

The scheme is UK-wide. However, the system of tiered restrictions in England, which gave rise to the government's newly increased economic support, is not.

While England has a three-tier system, Scotland is due to bring in a five-tier system of virus alert levels from 2 November.

The middle three will be "broadly equivalent" to the English three, but the Scottish system will add an extra tier at the bottom and one at the top.

Wales is about to enter a two-week national lockdown from 18:00 BST on Friday, while Northern Ireland began a four-week lockdown last Friday.

All the devolved nations have been promised extra central government funding so they can award grants at a local level.

Almost as soon as the heads of the CBI and the TUC appeared on the steps of Number 11 Downing Street to endorse last month's Winter Economic Plan, there were some doubts about its effectiveness.

Business and union leaders were happy that some support for part-time working had been announced - itself a revolution for the UK - but the levels of support fell well short of German-style schemes. In particular, employers faced a hurdle of having to pay at least half of workers' wages.

This was not a bug in the system - it was the strategy. The Treasury wanted the scheme to lean into a process of economic restructuring to a post-Covid "new normal" and not seek to prevent those changes.

But all that was predicated on the pandemic being on the wane and the recovery assured. That has not proven to be the case, and indeed some had spotted that, even at the time of the original plan. This is an acknowledgement of gaps in that scheme and that large swathes of the economy are in survival, not restructure mode.

For the chancellor, this is a sign that he will offer the right support at the right time. Others will say that the data was going in this direction a month ago, and that some jobs have unnecessarily been lost. Hospitality businesses gathered at a south London pizza restaurant also told the chancellor of their need for help with rents from landlords - something the Treasury thinks is far more tricky than, for example, mortgage holidays.

In Greater Manchester, they will wonder why this wasn't offered to areas that were under strong social restrictions earlier. But this is a significant package worth several billion pounds, recognising the economy clearly needs support now before some inevitable fundamental changes.

"I've always said that we must be ready to adapt our financial support as the situation evolves, and that is what we are doing today. These changes mean that our support will reach many more people and protect many more jobs," Mr Sunak said.

"I know that the introduction of further restrictions has left many people worried for themselves, their families and communities. I hope the government's stepped-up support can be part of the country pulling together in the coming months."

Responding to his statement, shadow chancellor Anneliese Dodds criticised the government for what she said was a "patchwork of poor ideas, rushed out at the last minute".

She said its approach to support for areas entering tier three had been "nothing short of shambolic".

In other political reaction, Greater Manchester mayor Andy Burnham tweeted that the new measures had not been "put on the table" during negotiations with the government this week that failed to agree a £65m package of support.

"Honestly, can barely believe what I'm reading here," he said.

Were there any other new measures?

The chancellor also announced specific help for hospitality and leisure businesses in tier two areas.

English councils will be funded to give monthly grants of up to £2,100 to 150,000 hotels, restaurants and B&Bs. Devolved nations will be given the equivalent funding for other nations, under the Barnett Formula.

The generosity of the self-employment scheme has also been doubled from 20% to 40% of profits, with a maximum grant now of £3,750 over a three-month period.

Furlough and redundancy are cutting incomes - and millions of people's finances are not in a position to cope.

Some 12 million people in UK have low financial resilience - meaning they find it hard to pay bills or make loan repayments, according to research by the City regulator, the Financial Conduct Authority.

It found that those from a black and minority ethnic background have been more likely than most to be affected by Covid-related falls in income, with 37% of those surveyed taking a hit.

Also, people aged between 25 and 34 were the most likely, by far, to have had a change in employment as a result of the pandemic.

That has led thousands of people to take payment "holidays" - deferrals on household bills such as rent or energy bills.

>From 31 October, anyone who arranges a break on repayments of mortgages, loans and credit cards will see their credit record marked - potentially making it harder to borrow more from then on.

Business leaders welcomed the changes, with the CBI employers' group calling it a "big step towards a more standardised approach".

UK Hospitality chief executive Kate Nicholls described it as "a hugely generous package of support and very welcome news just when we needed it".

She said the changes to the scheme would "help to safeguard hundreds of thousands of jobs" and give firms "a much-enhanced chance of being able to overcome the challenges and survive into 2021".

Adam Marshall from the British Chambers of Commerce said it was a "significant improvement" for many struggling businesses.

But he added: "The true test of these reforms will be whether they help businesses on the ground get through the difficult months ahead."

Torsten Bell, head of the Resolution Foundation think tank, which works to improve the standard of living of low-paid workers, said Mr Sunak had done the right thing by expanding help for companies.

"Doing it earlier, given the obvious flaws, would have saved more jobs, but at least we've got to the right place 10 days ahead of the Job Support Scheme coming into effect," he said.--BBC

Huawei Mate 40 phones launch despite chip freeze

Huawei has unveiled its Mate 40 smartphones claiming they feature a more "sophisticated" processor than Apple's forthcoming iPhones.

The component was made using the same "five nanometre" process as its US rival's chip, but contains billions more transistors.

As a result, the Chinese firm claims its phones are more powerful.

However, Huawei has had its supply of the chips cut off because of a US trade ban that came into effect in September.

That means that once its stockpile of the new Kirin 9000 processors runs out, it faces being unable to make more of the Mate 40 handsets in their current form.

At present, only Taiwan's TSMC and South Korea's Samsung have the expertise and equipment to manufacture 5nm chips, and both are forbidden to supply Huawei with them or any other semiconductor product whose creation involves "US technology and software".

The States says the move has been taken on national security grounds, but Huawei denies posing a threat.

The BBC asked how many of the chips Huawei had purchased, but it declined to answer.

However, in a online presentation, the company's consumer devices chief Richard Yu acknowledged the ban was "making the situation extremely difficult for us".

Huawei also faces other earlier restrictions placed on it by Washington, which have prevented any of the devices it has launched since mid-2019 from providing access to some of Google's services, including its Play Store.

Despite this, Huawei remains the world's third-bestselling smartphone-maker, and the market leader in its home country.

Huawei's sales rise despite ban. Shipments (July 2019-June 2020).  .

"In China, Huawei has phenomenal brand awareness in the premium space," commented Mo Jia, an analyst at tech research firm Canalys.

"Demand for the Mate 40 series is expected to be strong [there], but despite this, amid US sanctions, component constraints may limit the total quantity of new Kirin-powered smartphones Huawei can produce."

Smooth screens

The basic Mate 40 model - which Huawei said costs €899 ($1,049; £800) - has a 6.5in (16.5cm) OLED display. Three more expensive versions - ranging in price up to €2,295 - have 6.8in OLED screens.

In each case, the screens offer a 90Hz refresh rate - meaning the equivalent of 90 frames per second - which is higher than Apple's newest iPhones but less than Samsung's S20 series.

Mr Yu suggested this offered the best balance of smoothness and battery life.

One of the main ways the different models are differentiated are by their cameras:

·         the basic Mate 40 has a single selfie camera and three rear cameras (wide-angle, ultra-wide angle and telephoto)

·         the Mate 40 Pro adds a 3D face-unlock sensor, and improves the specifications of the rear ultra-wide and telephoto cameras

·         the Mate 40 Pro+ adds a fourth rear "super-zoom" camera and a fifth depth-sensing camera for improved shallow-focus shots

·         the Porsche Design Mate 40 RS introduces an infrared thermometer, allowing the device to check the local temperature

For the time being, the firm only plans to put the Pro model on sale outside China, where it will cost £1,100.

One of the innovations detailed was the use of a "free-form lens" for the ultra-wide angle camera found on each model, which Huawei said solved image distortion problems.

The firm added that an optional "eyes-on-device" feature - which only turns on the screen when it detects being looked at - would reduce the power the handset consumes.

Absent apps

Huawei said the Kirin 9000 chip includes an integrated 5G modem, which enables it to extend battery life beyond its rivals.

One slide displayed at the launch claimed the Mate 40 Pro would last about 25% longer on a single charge than Samsung's Note 20 Ultra+, despite the latter having a bigger battery.

Huawei said it was also using the extra processing power to take slow-motion shots at 240 frames per second from two of the cameras simultaneously.

The firm also boasted that the chip allows its devices to offer a "pro-gaming" experience, thanks to its ability to offer graphics with better detail and lighting effects.

However, some titles including Call of Duty Mobile will not work on the devices because of their lack of access to some of Google's technologies, while some others function but are unable to make in-app payments.

Most Android apps can be installed via the Petal search tool even if they do not appear in Huawei's own app store.

However, there are notable exceptions.

Many banking apps, eBay and the UK's Tesco Groceries app will not install, and instead the user is provided with an icon that instead launches their websites. The Sky News app is also unavailable, although Huawei said it was coming soon.

"Clearly politics has brought about a situation where Huawei is now working hard to become non-reliant upon Google to offer consumers an alternative," a spokesman told the BBC.

"Surely what Huawei is doing with its App Gallery - albeit a work in progress - deserves praise."

If an app is unavailable, users can add it to a "wish list" and Huawei says the developer will be told if there is strong demand.

But one expert questioned whether most consumers would be happy with the current arrangement.

"The new chip is impressive and the circular camera design on the rear distinctive, but despite Huawei's best efforts to build up its App Gallery, there are still significant gaps," commented Ben Wood from CCS Insight.

"Even with the Petal search capability, you still have this challenge that you have to find the applications and then side-load them onto the device. That's all very well for tech-savvy, committed Huawei enthusiasts, but for the mass market, it's a pretty big barrier to put in people's way."--BBC

Angolan Diamond Exchange to Open in 2021

Luanda — The minister of Mineral Resources and Petroleum, Diamantino Azevedo, launched last Wednesday the challenge to the companies in the diamond sector so that the first Diamond Exchange in Angola can be created at the end of 2021.

According to the government official - who was speaking at a meeting with top managers of companies like Endiama and Sodiam, as well as the international consultant Peter Meeus, hired to help create conditions for the installation of the Angola Diamond Exchange - it is a challenge for the sector that the Exchange initiates experimentally, even if in temporary facilities, in late 2021.

He added that the preliminary work for its installation "goes smoothly".

Peter Meeus, who leads the technical group for the definition of the Organizational Structure and Management of the Stock Exchange, pledged to do everything to make it a reality.

The existing exchange in Dubai emerges as one of the models to follow for the introduction of the diamond exchange in Angola, for which Peter Meeus was hired, who was already Honorary President and Administrative Director of the Dubai Exchange, in the United Arab Emirates.

Angola will produce eight million carats of diamonds this year, minus two million of the objectives set by the National Diamond Company (Endiama), due to constraints caused by Covid-19.

In 2019, the diamond sector in Angola produced 9.121.515, 07 (over 9.1 million) carats, exploited by 12 mining companies.-ANGOP.

Cote d'Ivoire: Serving Up Ivorian Cashew Nuts

For more than 300,000 independent cashew farmers in Cote d'Ivoire, gaining further access to the UK and European markets has direct economic benefits

Cote d'Ivoire is one of the world's largest producer of cashew nuts. Production is nearing a million tonnes of cashews each year, which is then sold to the main processing markets of India, Vietnam and Brazil before reaching final consumers in Europe and Asia.

But what market share are the cashew farmers of Cote d'Ivoire missing? And how can the cashew industry become even more competitive and unlock opportunities for exporters in the UK and EU markets?

This was the focus of discussions at the seminar titled "Competitiveness of the cashew sector in Cote d'Ivoire: Towards increased access to UK and European markets".

Senior government officials and representatives from cashew producers and trading companies together with European cashew importers attended the seminar that took place in Abidjan.

In his opening speech, the Ivorian Minister for Commerce and Industry, His Excellency, Mr. Souleymane Diarrassouba, noted, "This seminar will be an opportunity for the various national actors to take ownership of the challenges and opportunities linked to local processing, but above all to discuss strategies for improving the competitiveness of the Ivorian cashew sector."

Following disruptions to the global value chain and sale of cashews resulting from the COVID-19 pandemic, the conference examined both the challenges and opportunities for increased local processing and the potential of growing exports through direct engagement with European importers.

Trade Market Intelligence and branding experts from the International Trade Centre provided further insights into UK and European market opportunities including product diversification, sector-wide national branding and improved logistics.

Given the classification of cashew kernels into 26 different grades according to size, colour and condition, one of the key themes to emerge from the discussions was the need to unlock the export potential for lower or off grades of cashew nuts in certain markets.

Gaining access to UK and EU markets will create more jobs and improve livelihoods for those associated with the cashew sector in the country.

The seminar provided the platform for open discussions between the key stakeholders of the sector. As importers from Germany and Netherlands shared their insights, experiences and expectations around importing cashew nuts from Africa, participants noted the demand from Europe for a continuous supply of larger quantities. Ivorian exporters also noted the increased demand for organic cashews.

Although many companies in the cashew sector have been badly hit by COVID-19, the meeting participants praised the resilience of Ivorian cashew exporters. Participants heard from a producer who diversified their product offering to introduce cashew paste to their local market. Another producer shared their experience in obtaining certifications such as the British Retail Consortium (BRC) to access to new markets.

The seminar took place in Abidjan this month and was organised by the International Trade Centre's United Kingdom Trade Partnerships Programme (UKTP). UKTP is funded by the Foreign, Commonwealth and Development Office (FCDO) of the United Kingdom of Great Britain and Northern Ireland.

As one of the pilot countries in the UKTP, Cote d'Ivoire is participating in series of targeted activities aimed to bring greater awareness of existing Economic Partnership Agreements with the UK and Europe and increased market access and jobs creation.-ITC.

Southern Africa: Why SADC, Countries Still 'Oppose' Rhino Horn Trade

SADC countries have individually decided not to get involved in the non-commercial international trade in rhino horn. This questionable decision has happened despite approval for such trade by the UN international wild trade-regulating agency, CITES, and despite the help, it would give to wildlife conservation, the jobs it would create, and the socio-economic benefits it would bring to Southern Africa.

Why? The reluctance to trade rhino horn in any way possible seems strange in the face of the economic devastation, particularly to rural areas, caused by the Covid-19 pandemic.

It has almost stopped the tourism and hunting industries.

Both are currently failing to generate the needed conservation revenue to sustain wildlife areas. In light of the Covid-19 emergency, which may last another six to nine months - SADC citizens, as well as friendly foreign observers, should be forgiven for asking why SADC countries are still refusing to do anything to take advantage of any kind of trade in rhino horn.

"Are officials looking after our wildlife or their pocketbooks in the current crisis?" asked a SADC country citizen who spoke on condition of anonymity.

Responding to questions why they would not jump at the opportunity to raise rhino conservation funds through international non-commercial rhino horn trade, most of the SADC countries suggested in their answers that non-commercial trade would not earn them much revenue.

They prefer commercial trade that they say would potentially fill the market with legal and cheaper rhino products and put the poaching syndicates out of the rhino horn business once and for all.

"Refusing to trade in non-commercial rhino horn products is troubling," said the Managing Director of the US-based Ivory Education Institute (IEI), Godfrey Harris - a strong supporter of SADC countries' sustainable use cause.

For example, this month he strongly objected to an option offered by the CITES Secretariat to "manage" stockpiled ivory by destroying it.

"Establishing a legal non-commercial market - the mechanism for exporting and importing the product - will reduce unwarranted fears," said Harris.

"It will also make the public aware that rhino horn harvesting is not lethal to the animals and make commercial use seem like a normal extension of national policy when it comes. Crawl before you walk; walk before you run. The bureaucrats overseeing rhino horn trade seem to want to be in a position to compete in a marathon from the get go."

United

In contrast, SADC citizens said that they fully support the position taken by most SADC countries to not get involved in non-commercial trade but instead work towards the resumption of strictly controlled international commercial trade in rhino horn.

These citizens include Chieftainess Rebecca Baneka of Botswana's Pandamantenga Community in Chobe District, former CEO of Kavango-Zambezi Transfrontier Conservation Area (KAZA-TFCA) that has the world's biggest elephant population, Dr Morrison Mtsambiwa and Botswana Chobe Enclave Conservation Trust Vice-chairman Nchungu Nchungu.

Others supporting the position of non-involvement in non-commercial trading in rhino horn include Masoka CAMPFIRE Community representative of Zimbabwe, Mr Ishmael Chaukura and Botswana's Executive Director of Ngamiland NGOs, Mr Siyoka Simasiku.

"I think they [SADC governments] have a point about getting full commercial value [out of rhino horn] as it's likely to bring in more money for conservation as part of the sustainable use of natural resources etc.," said Dr Mtsambiwa.

The Executive Director of Botswana's Ngamiland NGOs, Siyoka said that "yes, I agree with them [SADC governments]" because commercial rhino horn trade would bring more revenue than non-commercial rhino horn trade.

Meanwhile, critical observers exhibit their doubt about this approach by asking the question, "Will commercial trade in rhino horn ever happen in view of the fact that there is very strong international opposition to it?"

Until when?

The UN agency CITES banned international trade in rhino horn in 1977. Since then, the influential anti-trade non-governmental animal rights organisations and some Western governments have made sure that the ban would remain in place by buying the votes of various countries (when necessary) and through other corrupting moves (providing travel, schooling, training, speaking honoraria, consulting fees, discounts, job opportunities, gifts for relatives, etc.) that have prevented trade for the past 43 years.

"The real answer of course would be to open up the legal international trade [in rhino horn] to optimize conservation funding, to compete with the illegal trade which is rampant anyway and to enable the custodians to break the monopoly held by the criminals who [currently] take 100% of the revenue while [we the] custodians pay all the costs of [animal] protection," said Ted Reilly, the CEO of the Big Game Parks, an agency that King Mswati of eSwatini has mandated to manage the Kingdom's wildlife. "If legal trade in rhino horn were permitted, Eswatini would not need aid to meet its commitments and would be better able to perform its conservation priorities."

The Zimbabwe Parks and Wildlife Management Director General, Fulton Mangwanya said that Zimbabwe will benefit more from commercial than "exceptionally authorized" non-commercial trade of rhino horns and derivatives.

"Certainly non-commercial international rhino horn or ivory trade will help raise conservation funds," said Director General Mangwanya. "Zimbabwe is in need of funding to conserve its wildlife. I think we are the only country in SADC that self-funds conservation."

Elsewhere in the SADC region, Botswana's Minister of Environment, Conservation and Tourism, Philda Kereng, said "Botswana does not sell rhino horn and its derivatives for non-commercial purposes. To this extent, Botswana has exercised its rights on non-commercial by exchanging some rhinos (mainly bulls) with South Africa for genetic viability, as our rhino population is small. However, as for non-commercial trade with research institutes, hospitals and museums, this has not happened yet as none of these entities have approached us for such proposed transactions, which we could consider on a case-by-case scenario."

South Africa's Department of Environment, Forestry and Fishers (DEFF) allows qualifying rhino farmers to trade in non-commercial activities. The challenge that these farmers are facing is that currently the rhino horn markets in such countries as China, Vietnam and Taiwan are closed. A statement issued by DEFF, on behalf of Minister Barbara Creecy, said that under CITES regulations an importing country has to show interest in the incoming trade before an export license can be approved.

Because of innovative conservation policies that allow its citizens to own wildlife, South Africa has become the champion in rhino conservation with the world's largest population of about 21 000 rhinos. It is the only country in the SADC region that allows private custodianship of both African rhino species. Currently, there are 330 private rhino custodians who protect more than 6 300 rhinos, or about 35% of the country's rhino population.

The CITES online trade database reveals clearly that most countries are trading in captive bred species more than they trade in species from the wild.

Rather than deal with non-commercial trade in rhino horn, SADC countries would prefer the establishment of a SADC Regional Commercial Rhino Horn and Ivory Trade Body capable of conducting auctions in wildlife products.

"But why hasn't it been established?" asked Harris of the Ivory Education Institute who would like to participate in this long-awaited trading process. "Why has no body of experts been formed to suggest how best to establish this trading body? Who is holding up the process of moving forward?"

Harris who is also a former advisor to US President Lyndon Johnson said that Africans "owe it to themselves" to make ivory and rhino horn trade happen.

"Years ago, CITES found a way to bring back the Nile crocodile from near extinction and sponsored a way to save the vicuña while harvesting its wool," he said. "Since CITES now seems incapable of thinking or acting beyond the dictates of the animal rights groups which argue that all wildlife should be left untouched by human activity, I believe that the SADC countries can move forward themselves to establish a trading platform for rhino horn and ivory."

Frustration

Africa has been frustrated with the animal rights CITES capture since 1975, when the organization was established in Washington DC with an anti-wild trade culture.

"Why can't Southern Africa see the problem?" asks Harris. "The Animal Rights Groups have long sought to remove the middle name [Trade] from the Convention on International Trade in Endangered Species. Stopping international trade by a thousand cuts of individual prohibitions renders CITES useless."

Without fully opened markets, SADC countries can't trade easily, but this should not stop SADC countries from setting up the SADC Ivory and Rhino Horn Trading Body. The SADC countries need to make the first move to make ivory and rhino horn trade happen worldwide. This will send a signal to China and other Asian countries that the producer countries are ready to deal in these two commodities. The big rhino horn and ivory trade markets of China, Japan, Taiwan, Thailand, Philippines, Cambodia, Laos, and Vietnam will surely get the message. About a year ago, China announced that it had re-opened its ivory and rhino horn markets but then said it had suspended trade until further notice. That was before the SADC countries had gone on reservations in order to supply ivory and rhino horn. Now with Chinese rhino and ivory markets having been opened (but remains suspended), SADC is challenged to find a way to entice China to lift the suspension. Observers say that as soon as China gets involved in legal, controlled and balanced trade in ivory and rhino products, other importing countries would predictably follow.

The citizens of African countries, particularly rural communities co-existing with wildlife, have and should continue to deliver their own loud and clear message to the world: "We treasure our rhinos, elephants, and lions; we want legal trade in these species in order to promote the balanced conservation of all wild species in our areas. Trade not aid will save African wildlife."

Critical observers locally, regionally and internationally say it's past due time that the governments of these African citizens hear and endorse this urgent message.

Harris asks hard questions: "How many years have these authorities had to get things right by establishing the long-awaited SADC Ivory and Rhino Horn Trading Body and raise the much-needed rhino and ivory conservation funds?

Will they achieve their goal when all the animals are gone through starvation?

Are the delays really about saving the animals or saving the perks that the bureaucrats receive from or through the animal rights groups?

"Why aren't more of the press demanding progress on this urgently needed rhino horn and ivory regional trading from their politicians?"

He suggests that instead of waiting for someone to make a "slow shuffle through the swamp of corruption that envelopes most Southern African countries," a new and urgent approach to all forms of corruption is needed at the same time the trading platform for ivory and rhino horn is being established.

"Make the penalty for any form of corruption far harsher than the attraction of whatever reward the corrupters are offering," suggests Harris.

"Make no exceptions and give no relief no matter the extenuating circumstances. Throw the small corrupt government officials into the same jail as the big corrupt corporate officers. Prosecute everyone who offers or accepts any kind of payment. That will end corruption in its tracks, put a UN agency like CITES on the right course, and allow the people of Southern Africa to get on a wildlife-powered economic 'train' to a better future for them and their wildlife."

The SADC countries started working seriously towards the establishment of a SADC Ivory and Rhino Horn Regional Trading Body at the May 2019 Kasane Elephant Management Summit; attended by SADC presidents that share borders in the elephant overpopulated KAZA-TFCA.

But nothing has happened. Nothing happened again at the August 2019 CITES CoP18, in Geneva Switzerland.

Meanwhile, Botswana, Namibia, eSwatini, South Africa and Zimbabwe said that they have never been put under pressure either by animal rights or Western superpowers not to trade in their rhino horn.

"Zambia won't comment on the above," said the Public Relations Manager for Zambia's Department of National Parks and Wildlife, Zacks Sakabilokalembwe. He was referring to all questions on non-commercial trade in rhino.

"So what is holding them [wildlife-rich SADC countries] up from doing something?" asked Harris.

*Emmanuel Koro is a Johannesburg-based international award-winning independent environmental journalist who writes and has written extensively on environment and development issues in Africa.- New Era.

Mozambique: Sharp Fall in Transit Trade in Maputo Port

Maputo — The port of Maputo recorded a drop of 13 per cent in the volume of cargo in transit handled in the January-August period this year, compared with the same months in 2019.

In the first eight months of 2019, the port handled 8.1 million tonnes of cargo in transit, compared with only seven million tonnes in the same period this year.

Most of the transit trade is to or from South Africa. For businesses in much of South Africa, it is much quicker and more convenient to use Maputo than the South African ports of Durban or Richards Bay.

But South African trade went into sharp decline when the Pretoria government imposed one of the most severe lockdowns in the world, in an attempt to halt the spread of the coronavirus pandemic.

The general manager of the port of Maputo, Osorio Lucas, told AIM "Maputo Port mainly handles cargo in transit, and 65 per cent of the total cargo comes from South Africa. Since the announcement of the lockdown in South Africa, the activities of Maputo Port have suffered a considerable impact".

The rest of the cargo is mostly Mozambican, with only small amounts from Zimbabwe and Eswatini.

Despite the gradual easing of the restrictions imposed by the South African and Mozambican governments, there are still enormous challenges on the borders, said Lucas, notably with the movement of minerals by truck. The flow of trucks has declined by 37 per cent.

The main South African mineral using the port is ferro-chrome. Lucas claimed that, prior to the pandemic, the port was receiving 414 truckloads of chrome per day (an extraordinary figure that would mean a truck was arriving at the port every three and a half minutes).

Turn-around time (from the South African mine to Maputo port and back) was just 25 hours. But after Covid-19 struck, the number of chrome trucks fell to 261 a day, and the turn-around time increased to 96 hours.

Lucas said that, to overcome the challenges posed by the pandemic, the port has embarked on digitalisation in order to reduce operational costs and improve efficiency.

Despite the negative impact of Covid-19, the Maputo Port Development Company (MPDC) decided to continue investing in critical port facilities, aligned with investments made by the South African and Mozambican rail companies, to stimulate the use of the railways to carry cargo to the port.

This work includes rehabilitating four quays that are currently out of use, and dredging these quays from the current 12 metres of depth to 16 metres for quays 6, 7 and 8, and to 15 metres for quay 9.

Mozambique: Central Bank Keeps Interest Rates Unchanged

Maputo — The Monetary Policy Committee of the Bank of Mozambique (CPMO), meeting in Maputo on Wednesday, decided to keep the bank's key interest rates unchanged.

According to a statement from the CPMO, signed by the governor of the Bank, Rogerio Zandamela, the Interbank Money Market Rate (MIMO), used by the central bank for its interventions on the interbank money market to regulate liquidity, remains 10.25 per cent.

Likewise, the Standing Lending Facility (the interest rate paid by the commercial banks to the central bank for money borrowed on the Interbank Money Market) remains 13.25 per cent, while the Standing Deposit Facility (the rate paid by the central bank to the commercial banks on money they deposit with it) remains 7.25 per cent.

The CPMO also decided to hold the compulsory reserve coefficient, the amount of money that the commercial banks must deposit with the Bank of Mozambique, steady at 11.5 per cent for local currency and 34.5 per cent for foreign currency.

The statement said the decision "is justified by the worsening of risks and uncertainties, in a context where the medium term prospects point to a trend to rising prices in 2021, in a situation in which economic activity remains repressed".

The Bank of Mozambique predicts a rise in inflation in the short and medium term. Annual inflation increased from 2.75 per cent in August to 2.98 per cent in September. In 2021, inflation will continue to rise because exceptional measures taken by the government to hold down prices in the face of the coronavirus pandemic will come to an end.

Nonetheless, given the current weak demand for goods and services, the bank expects annual inflation to remain in single digits (i.e. less than ten per cent).

The CPMO statement notes that, after the contraction of economic activity this year due to the impact of the pandemic, "a gradual resumption of growth is expected in 2021, driven by the natural gas projects in the Rovuma Basin, in a context where the performance of export-oriented sectors may remain limited by the weak recovery of the world economy".

The domestic exchange market is not currently short of foreign exchange. The CPMO said that, during 2020, the central bank has purchased the equivalent of 3.98 billion US dollars on the domestic exchange market, and has sold 3.93 billion dollars.

In addition, the country's gross international reserves have risen to 3.912 billion dollars, enough to cover more than six months imports of goods and services.

Despite this, the central bank expects the metical to continue its slow depreciation, "reflecting, among other factors, the risks and uncertainties prevalent in the domestic economy".

Those risks and uncertainties have increased in recent months, due to such factors as a second wave of Covid-19 in the advanced economies and the approaching US presidential election. Within Mozambique, concerns have increased about the pandemic and the worsening military instability in the northern province of Cabo Delgado, where the government is fighting Islamist terrorism, and in the centre of the country, where the self-styled "Renamo Military Junta" is continuing to attack traffic on the main roads.

Mitigation of the prevailing risks and the promotion of sustainable growth will require "the deepening of structural measures", the CPMO advises. There are limits to what monetary policy alone can achieve, and so the CPMO calls for "fiscal consolidation, and the strengthening of institutions, seeking to improve the business environment, attract investment and create jobs".

Egypt: Sisi Gives Green Light to Petroleum Minister to Amend Oil Exploration Agreement

President Abdel Fattah El Sisi issued on Thursday 22/10/2020 law no. 155 of 2020 to allow the minister of petroleum and mineral wealth to contract with the Egyptian General Petroleum Corporation (EGPC) and Tharwa Petroleum Co. to amend an agreement for oil exploration in east Abu Snan area in the Western Desert.

The decree, which has been published in the official gazette, came in line with law 131 of 2014 .-Egypt Online.

Uganda: Mbale, Soroti, Tororo Get Shs40b to Upgrade Roads

M bale, Soroti cities and Tororo Town have received Shs40b billion from the World Bank under the second phase of Uganda Support to Municipality Infrastructure Development (USMID) project to improve infrastructure.

The funds will be used for upgrading roads, drainage systems and installing street lights.

Ms Sheila Naturinda, the communications specialist in USMID-AF programme at the Ministry of Lands, told Daily Monitor on Monday that the contract was signed last week.

"The work is expected to start in two weeks. The works are expected to be completed in 15 months," Ms Naturinda said, adding that the tender for the works was awarded to Dott Services.

Facilities

She said the contractor would fix the drainage on the roads, install street lights, trash cans, bus stop shelters and walkways.

Ms Naturinda said a total of 77 streetlights would be installed on Cathedral Avenue and Naboa roads in Mbale, 120 lights at Edyegu, School and Haridas roads in Soroti, while Mvule and Oguuti roads in Tororo will get 49 lights.

Ms Naturinda said Nabuyonga Rise and Mugisu Hill roads in Mbale City have also been prioritised.

Mr James Kutosi, the spokesperson for Mbale City, said the road contract in the area is about Shs20b.

"We have received about Shs11 billion to start the work," Mr Kutosi said, adding that the third phase of the project will work on Nkokonjeru, North, Mumias and Central roads, among others.

Mr Paul Batanda, the city town clerk, said the first phase faced challenges, which caused delays and defects.

"This time, we have taken precautionary measures to ensure the materials used are standard. We want quality work," Mr Batanda said.

Mr Mutwalib Zandya, the city mayor, urged residents to cooperate with the contractor when the roadworks begin.

Mr Moses Otimong, the Soroti City town clerk, said three roads will be worked on at a cost of Shs17b. He added that the contract will run for a year.

"These roads will improve businesses and service delivery in the city," he said.

Local leaders said the second phase delayed after the Ministry of Lands ordered a fresh procurement process.

Some of the roads that were upgraded in the first phase include Republic Street, Pallisa, Nabuyonga Rise and Mugisu Hill in Mbale.

They were constructed by Plinth Technical Services Company Ltd, but its contract was later terminated in 2015 over delayed works. The completion was done by Zhong Mei, a Chinese company.

Other districts

Last year, the World Bank announced that it would release $350 million to help boost infrastructure development in eight more municipalities across the country; under the USMID project.

The new municipalities that are set to benefit from the new funding include Lugazi, Kasese, Kamuli, Mubende, Apac, Kitgum, Ntungamo and Busia. Earlier beneficiaries include Fort-Portal, Hoima, Kabale, Mbarara, Masaka, Entebbe, Jinja, Lira, Gulu, Moroto and Arua.-Monitor.

Global stocks hold tight ranges as U.S. election caution sets in

TOKYO (Reuters) - Global stocks barely budged on Friday as investors tightened positions with less than two weeks to go before the U.S. presidential election and awaited a breakthrough in stimulus talks in Washington.

The final debate between U.S. President Donald Trump and his Democrat challenger Joe Biden on Thursday presented few surprises for election watchers but slightly reinforced investor caution heading into the Nov. 3 poll.

U.S. S&P 500 futures ESc1 had dipped slightly after the debate but were mostly flat by midday trade. The underlying index had gained about 0.5% in the previous day on hopes that the U.S. Congress and the White House could soon strike a deal on another round of COVID-19 stimulus.

Shares in Asia hardly budged, with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS flat while Japan's Nikkei .N225 ticked up 0.2%.

The CSI300 index of mainland China .CSI300 also edged up 0.2%.

At Thursday’s debate, Biden renewed his criticism of Trump’s handling of the coronavirus pandemic as Trump levelled unfounded corruption accusations at Biden and his family.

“I don’t think there’s anything new in it, I think that’s why the market is not moving much. The focus is still on the timing of the fiscal stimulus and how big it is,” said Moh Siong Sim, FX analyst at Bank of Singapore.

On Thursday, U.S. House of Representatives Speaker Nancy Pelosi reported progress in talks with the Trump administration for another round of financial aid, saying legislation could be hammered out “pretty soon”.

While the news helped to lift U.S. share prices, the U.S. S&P500 .SPX is still down 0.9% so far this week amid uncertainties over stimulus and the election.

A widening lead in polls by Biden is prompting many investors to bet on a Biden presidency and also a “blue sweep”, where Democrats win the both chambers of Congress.

“A blue wave may lead to concerns about the impact on the tech sector, while a Biden win and a split Congress may imply another four years of limited policy changes and politicking,” said Mary Nicola, senior economist at Pinebridge Investments in Singapore.

Reflecting concerns Democrats could take a harder stance on big tech firms, the Nasdaq index .IXIC, which had led the market's rally, has underperformed lately, having lost 1.4% so far this week.

Expectations of bigger government stimulus have also boosted U.S. borrowing costs.

The 10-year U.S. Treasuries yield US10YT=RR rose to 4 1/2-month high of 0.870% on Thursday and last stood at 0.853%.

U.S. economic data published on Thursday surprised to the upside, as jobless claims fell more than expected and existing home sales exceeded estimates to more than a 14-year high.

In the currency market, the dollar bounced back from Wednesday’s seven-week low but stayed under pressure as investors began to wager on a Biden presidency and big U.S. stimulus.

The euro traded at $1.1803 EUR=, down 0.2% and off Wednesday's high of $1.1805 but still up 0.7% on the week.

The yen changed hands at 104.77 yen per dollar JPY=, stepping back a tad after its biggest gain in nearly two months on Wednesday.

The Chinese yuan stood at 6.6729 per dollar in offshore trade CNH=, off 27-month high of 6.6278 touched on Wednesday.

Oil prices were supported by hopes on U.S. stimulus and the prospect of extended output cuts.

Brent futures LCOc1 ticked up 0.3% to $42.59 per barrel while U.S. crude futures CLc1 rose 0.25% to $40.74 per barrel.

Wells Fargo explores sale of asset management business - sources

(Reuters) - Wells Fargo & Co is exploring a sale of its asset management business, in what would be the U.S. bank’s biggest shake-up since former Bank of New York Mellon chief executive Charles Scharf joined as CEO last year, people familiar with the matter said on Thursday.

The potential deal would illustrate how Scharf is looking at drastic moves, beyond cost cuts, as he seeks to turn Wells Fargo around following a years-old sales practices scandal. He has said he is targeting $10 billion in savings annually over the long term.

Wells Fargo’s asset management arm, which managed $578 billion on behalf of customers as of the end of June, could fetch more than $3 billion in a sale, two of the sources said.

The San Francisco-based bank has discussed a potential deal with asset management companies and private equity firms, according to the sources, who cautioned that a divestment is not certain and asked not to be identified because the matter is confidential.

A Wells Fargo spokesman declined to comment.

Wells Fargo reported a 57% drop in its third-quarter profit earlier this month, missing Wall Street’s expectations, as persistent costs continued to haunt the bank.

The bank has been grappling with these costs since 2016, when it entered a settlement with regulators that detailed millions of phony accounts employees had created in customers’ names without their permission to hit sales targets.

Bank executives have signaled repeatedly that the worst of the fallout is in the past, but elevated operating losses have persisted.

The U.S. Federal Reserve has placed restrictions on Wells Fargo’s balance sheet, to be lifted only when the management team can prove it has sufficiently improved risk management and controls.

Scharf told analysts on the bank’s third-quarter earnings call this month that he expected to create some room on Wells Fargo’s balance sheet by exiting non-core businesses.

“I just want to be clear. We are exiting them because they are not core to serving our core customer base on the consumer and large corporate side. We are not exiting them because of the asset cap,” Scharf said.

The asset management business, which is part of Wells Fargo’s wealth and investment management division, offers mutual funds and retirement products. Wells Fargo plans to keep its wealth management business that caters to high-net worth clients, the sources said.

The wealth and investment management division is led by Barry Sommers, the former head of JPMorgan Chase & Co’s wealth management business that Scharf recruited in June.

Wells Fargo had started to trim the division even before Scharf because CEO. It sold its retirement plan services business to Principal Financial Group Inc last year for $1.2 billion.

Intel's margins tumble as customers shift to cheaper chips, shares slide 10%

(Reuters) - Intel Corp INTC.O on Thursday reported that margins tumbled in the latest quarter as consumers bought cheaper laptops and pandemic-stricken businesses and governments clamped down on data center spending, news that sent its shares down 10%.

Intel, the dominant provider of processor chips for PCs and data centers, has struggled with manufacturing delays. In July, it said its next generation of chipmaking technology was six months behind schedule.

Chip sales are booming, but customers want lower-priced chips rather than Intel’s pricier high-performance offerings, dragging down overall gross margins.

The pandemic has given Intel a boost in the form or surging laptop sales as employees and students work and learn from home. Sales in its PC group were $9.8 billion, beating analyst estimates $9.09 billion, according to FactSet.

But Intel sold a higher volume of less-profitable chips in its PC business, driving operating margins down to 36% in the third quarter from 44% a year earlier.

“You’re seeing the demand shift from desktops and higher-end enterprise PCs to the entry-level consumer and education PCs,” Chief Financial Officer George Davis told Reuters in an interview. “Even though the volume is good, your (average selling prices) are coming down, so that impacts your gross margins a little bit.”

Davis said a similar dynamic hit the data center business, where spending by government and business customers plummeted 47% after two quarters of growth and operating margins dropped from 49% to 32%. Revenue from Intel’s data-center business fell 7% to $5.9 billion in the reported quarter versus analyst of $6.21 billion, according to FactSet.

While cloud computing customers and operators of 5G networks helped make up for some of the shortfall, those chips are lower priced, Davis said.

“The main issue for Intel moving into 2021 remains gross margin pressure and further deterioration of its leadership position due to its process node roadmap delays,” KinNgai Chan, analyst with Summit Insights Group.

Intel faces a challenge from rivals such as Advanced Micro Devices Inc AMD.O and Nvidia Corp NVDA.O. Those competitors use outside manufacturers and have capitalized on Intel's woes to gain market share in both data centers and PCs, with AMD in particular hitting its highest market share since 2013 earlier this year.

Intel, however, said a 10-nanometer chip factory in Arizona had reached full production capacity and that it now expects to ship 30% higher 10nm product volumes in 2020 compared to January expectations.

Excluding items, it earned $1.11 per share, in line with estimates, according to IBES data from Refinitiv.

The company said it was expecting fourth-quarter revenue of about $17.4 billion, while analysts were expecting revenue of $17.36 billion.

Earlier this week, Intel said it would sell a money-losing commodity memory chip business to Korea's SK Hynix 000660.KS in a $9 billion all cash deal, with Intel hanging on to a more advanced memory chip unit and using the cash to invest in other products.

The company also said it started a $10 billion share repurchase program in August.

“Its stock is trading at 10 times earnings and looks cheap,” said Patrick Moorhead, principal analyst Moor Insights & Strategy.

Walmart sues federal government over opioid case

(Reuters) - Walmart Inc said on Thursday it had filed a lawsuit against the federal government, seeking clarity on the roles and legal responsibilities of pharmacists and pharmacies in filling opioid prescriptions.

Walmart said certain officials in the U.S. Justice Department are threatening to sue the retail giant, claiming pharmacists should have refused to fill otherwise valid opioid prescriptions.

"We are bringing this lawsuit because there is no federal law requiring pharmacists to interfere in the doctor-patient relationship to the degree DOJ is demanding," Walmart, which runs one of the largest pharmacy chains in the country, said in a statement here.

Walmart in the lawsuit against the DOJ and the Drug Enforcement Administration (DEA) said the federal authorities are seeking civil penalties related to its alleged failure to submit suspicious order reports and added that this potential move would be “unprecedented.”

The DOJ and the DEA did not immediately respond to a request for comment.

On Wednesday, a West Virginia court ruled that Walmart must turn over information about federal and state investigations into its opioid-related practices to hospitals suing the company for allegedly contributing to the epidemic. reut.rs/37vZNim

Opioid addiction has claimed roughly 400,000 lives in the United States from 1999 to 2017, according to the U.S. Centers for Disease Control and Prevention.

Critics of the industry said opioid makers hid the addiction and abuse risks of prolonged use from consumers.

Invest Wisely!

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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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