Major International Business Headlines Brief::: 26 October 2020

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Major International Business Headlines Brief::: 26 October 2020

 


 

 


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

 


 

 


ü  British-bred Royal Enfield speeding ahead in Asia

ü  Quibi: 'Snackable' video app to close after six months

ü  Asia shares turn muted as S&P 500 futures slip

ü  Dunkin' Brands discuss potential sale to Inspire Brands

ü  Apple supplier Luxshare unnerves Foxconn as U.S.-China feud speeds supply
chain shift

ü  Coca-Cola's European partner makes $6.6 billion play for Australia
bottler

ü  Canada's Cenovus to buy Husky for $2.9 billion as pandemic drives oil
mergers

ü  Samsung affiliates' shares rise after Lee's death sparks hopes of
shake-up

ü  Amazon wins arbitration order against Future's deal with Reliance

ü  Lufthansa to ground more planes during winter as pandemic bites

ü  Botswana: President Masisi Spurs Young Farmer

ü  South Africa borders re-open, but won’t be “business as usual”

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

British-bred Royal Enfield speeding ahead in Asia

British-bred Royal Enfield is expanding aggressively as it aims to tap into
the world's biggest motorbike-buying market, in Asia.

 

One of the world's oldest bike brands still in operation has been owned by
India's Eicher Group since 1994 and has seen strong sales in its local
market.

 

It is now embarking on increasing sales across Asia, and recently announced
plans to open a new factory in Thailand.

 

Asian customers appreciate the style and heritage of its bikes, Royal
Enfield chief executive Vinod Dasari tells the BBC.

 

"We make a significantly better bike for not a significantly higher price,"
he says.

 

"Plus we design and produce bikes for the world, not just India".

 

The new Thailand plant is expected to be in operation within the next 12
months and will be the firm's biggest factory outside of India.

 

It will serve as a hub to export to other countries in South East Asia
including Vietnam, Malaysia and China.

 

Mr Dasari has ambitious plans, aiming to launch one new bike each quarter
for the next three to five years. 

 

"Asia Pacific is a very exciting and important market for us, and our buyers
tend to be aspirational, looking for something better."

 

Asia has a strong tradition of motorbike riding. India is the world's
biggest market for motorbike sales, followed by Thailand, Indonesia and
Vietnam.

 

Motorbikes are the easiest way to navigate the region's often congested
roads, particularly in its big cities.

 

Sales for Royal Enfield, which only makes motorbikes in the mid-segment
market (250-750cc class), have grown 88% across the region in the last year.

 

However, not all motorbike brands have been successful in Asia.

 

US-based Harley-Davidson recently announced its withdrawal from India, in
stark contrast to Royal Enfield's expansion.

 

"Products of Harley-Davidson were considered oversized for India. The
infrastructure, top speeds and traffic discipline is not very suited to
cruising at high speeds safely," says Vivek Vaidya, a transport expert at
consultants Frost & Sullivan.

 

"They tried lower engine sizes but that wasn't their forte. Trying to take
on Royal Enfield in that segment was not so easy," he adds.

 

Royal Enfield, in contrast, has products which more readily suit the
region's bike buyers, say some.

 

"People are buying Royal Enfield machines based upon their ease of use,
their simple design and their classic vintage styling," says Scott Lukaitis,
a motor sports consultant.

 

"They provide the opportunity for new riders to enter the power sports
community at a cost-conscious price point without the need to have a great
deal of mechanical ability or knowledge to keep them running."

 

Ask Mr Dasari and he emphasises Royal Enfield's heritage as an attraction:
"We are not just selling a product, we are selling an experience."

 

Next year marks Royal Enfield's 120th anniversary since it built its first
motorbike. Although with India still battling Covid-19 it has not announced
any plans yet to celebrate this milestone.

 

As for the future of the Asian motorbike sector in a post-pandemic world,
many see continued growth.

 

"The general consensus is fear of infection may shift people away from
shared transport to individual mobility. Hence, the cheapest mode for rural
areas is the motorcycle," says Mr Vaidya.-BBC

 

 

 

Quibi: 'Snackable' video app to close after six months

The mobile-focused streaming service Quibi has announced it will close just
six months after its launch, after failing to attract enough subscribers.

 

The platform offered "quick bites" of video and had lined up big Hollywood
stars to appear in some of its shows.

 

But the company said launching its service during the coronavirus pandemic
had brought "unprecedented challenges".

 

It will now seek to sell its technology platform and the rights to some of
its original content.

 

Quibi was set up by former Walt Disney Studios chairman Jeffrey Katzenberg,
and Meg Whitman, former chief executive of Hewlett Packard Enterprise.

 

When it was launched in the US in April, the company had raised $1.8bn
(£1.37bn) from investors and hoped to rival Netflix and YouTube.

 

 

Its programmes were 10 minutes or shorter, with films broken into segments.

 

A key selling point was that videos were produced in both a vertical and
horizontal format, and the app would automatically switch between them when
the viewer turned their smartphone.

 

BBC Global News produced a daily news programme for the platform, one of
several broadcasters paid to make content for Quibi.

 

BBC Studios, the organisation's commercial arm, and rival broadcaster ITV,
had both invested in the platform.

 

"Quibi is not succeeding. Likely for one of two reasons: because the idea
itself wasn't strong enough to justify a standalone streaming service or
because of our timing," Quibi said in a blog post.

 

"The circumstances of launching during a pandemic is something we could have
never imagined."

 

Critics of the service said its short content, designed to be watched by
commuters or during a lunch break, had been launched at a time when millions
more people were working from home.

 

But one analyst suggested the platform would have struggled regardless of
the pandemic.

 

"The pandemic gives them a good excuse for their failure, but I think the
real problem was that the idea of episodic content in five-minute chunks
isn't what people are looking for on their smartphone: they want the six
second dance moves on TikTok or an influencer video on YouTube or
Instagram," said Jim Nail, principal analyst at the consultancy
Forrester.--BBC

 

 

 

Asia shares turn muted as S&P 500 futures slip

SYDNEY (Reuters) - Asian shares got off to a subdued start on Monday as
surging coronavirus cases in Europe and the United states threatened the
global outlook, while China’s leaders meet to ponder the future of the
economic giant.

 

The United States has seen its highest ever number of new COVID-19 cases in
the past two days, while France also set unwanted case records and Spain
announced a state of emergency.

 

That combined with no clear progress on a U.S. stimulus package to pull S&P
500 futures down 0.5% ESc1. EUROSTOXX 50 futures STXEc1 eased 0.4% and FTSE
futures FFIc1 0.3%.

 

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS
went flat, still short of its recent 31-month peak. Japan's Nikkei .N225
dithered either side of steady, and South Korea's main index lost 0.3%
.KS11.

 

Chinese blue chips .CSI300 shed 1.1% as the country's leaders met to chart
the nation's economic course for 2021-2025, balancing growth with reforms
amid an uncertain global outlook and deepening tensions with the United
States.

 

A packed week for monetary policy sees three major central banks hold
meetings. The Bank of Canada and Bank of Japan are expected to hold fire for
now, while the market assumes the European Central Bank will sound cautious
on inflation and growth even if they skip a further easing.

 

Data due out Thursday is forecast to show U.S. economic output rebounded by
31.9% in the third quarter, after the second’s quarter’s historic collapse,
led by consumer spending.

 

Analysts at Westpac noted that such a bounce would still leave GDP around 4%
lower than at the end of last year, with business investment still lagging
badly.

 

“To fully recover the activity lost, additional meaningful fiscal stimulus
is a must,” they argued in a note.

 

The U.S. Presidential election will again loom large as markets move to
price in the chance of a Democratic president and Congress, which would
likely lead to more government spending and borrowing down the road.

 

That outlook drove U.S. 10-year Treasury yields to their highest since early
June last week at 0.8720% US19YT=RR. They were trading at 0.83% on Monday.

 

“We have raised the probability of a Democratic sweep, already our base
case, from 40% to just over 50% and have increased our expectation of Biden
to win from 65% to 75%,” wrote analysts at NatWest Markets in a note.

 

“We see steeper U.S. yield curves and a weaker USD as likely to prevail in
our base case.”

 

The dollar was flatlining on Monday, having fallen broadly last week. The
euro was holding at $1.1840 EUR= and just under its recent top of $1.1880,
while the dollar was pinned at 104.80 yen JPY= and not far from last week's
trough of 104.32.

 

The dollar index was a fraction firmer at 92.904 =USD, after shedding almost
1% last week.

 

In commodity markets, gold edged down 0.1% to $1,898 an ounce XAU=. [GOL/]

 

Oil prices fell further in anticipation of a surge in Libyan crude supply
and demand concerns caused by surging coronavirus cases in the United States
and Europe. [O/R]

 

Brent crude LCOc1 futures lost 65 cents to $41.12 a barrel, while U.S. crude
CLc1 fell 69 cents to $39.16.

 

 

 

Dunkin' Brands discuss potential sale to Inspire Brands

(Reuters) - Dunkin' Donuts and Baskin Robbins chains owner Dunkin' Brands
Group Inc DNKN.O has held preliminary discussions to be acquired by Inspire
Brands, a private equity-backed restaurant company, Dunkin' said in a
statement on Sunday.

 

“There is no certainty that any agreement will be reached,” said Karen
Raskopf, Chief Communications Officer of Dunkin’ Brands.

 

Dunkin’ declined to reveal further details.

 

The deal being discussed would take Dunkin’ Brands private at a price of
$106.50 a share, said the New York Times which first reported the
development.

 

Inspire Brands, the owner of Arby’s and Jimmy John’s, declined to comment
when contacted by Reuters.

 

The announcement could be made public as soon as Monday, the New York Times
said.

 

 

 

 

Apple supplier Luxshare unnerves Foxconn as U.S.-China feud speeds supply
chain shift

TAIPEI/SHANGHAI (Reuters) - Apple's AAPL.O top iPhone assembler,
Taiwan-based Foxconn, has set up a task force to fend off the growing clout
of Chinese electronics manufacturer Luxshare, which it believes poses a
serious threat to its dominance, three sources with knowledge of the matter
said.

 

The project was initiated by Foxconn's founder Terry Gou, according to one
of the sources, to target Dongguan-based Luxshare 002475.SZ, which is
little-known internationally but is poised to become the first mainland
China-headquartered firm to assemble iPhones - a turf until now dominated by
Taiwanese manufacturers.

 

The task force, which the sources say was created last year, has been
looking into Luxshare’s technology, expansion plan, hiring strategy and
whether the company - which currently makes only 5% of Foxconn’s revenue -
is supported by any Chinese government entity.

 

While the U.S.-China trade war and the coronavirus crisis have intensified
pressure on global supply chains, an increasingly acrimonious tech feud
between the economic giants has also prompted Beijing to strengthen efforts
on creating world-leading local tech firms - and Luxshare’s growth
trajectory fits into that mould.

 

“Luxshare is set to rise ... it’s just a matter of how fast it could be,”
one of the sources said.

 

“It makes sense for China to build up its own supply chain and Luxshare is
in line with that state policy.”

 

That state policy, analysts say, is gaining traction with the rise of
China’s “red supply chain”, where Chinese firms with apparent government
support increasingly take on the work of manufacturing products for Apple
and other global firms.

 

“Facing the rise of the red supply chain, the threat of Taiwan manufacturers
being replaced continues to increase,” Market Intelligence & Consulting
Institute, a think tank backed by Taiwan government, wrote in a September
report.

 

Luxshare, whose chairwoman was once a worker at Taiwanese Apple supplier
Foxlink 2392.TW, acquired two smaller factories belonging to Taiwanese
iPhone assembler Wistron in China in July. Previously, Luxshare was best
known for making Apple's AirPods.

 

One of the sources called it a “formidable opponent”, and said Foxconn has
been conducting extensive research on Luxshare, aiming to “defeat it
completely.”

 

The sources, who have direct knowledge of the matter and are familiar with
Foxconn’s thinking, declined to be named citing the sensitivity of the
issue.

 

Public records reveal that while Luxshare is majority-owned by Grace Wang
and her brother Wang Laisheng, its minority shareholders include state-owned
Chinese investment company Central Huijin Investment Ltd, which has a 1.38%
stake.

 

Luxshare has also received over 1 billion yuan ($148.80 million) in
government subsidies since 2016 to the first half of this year, a Reuters
calculation of its financial reports shows. Roughly half of that sum came in
2019 alone.

 

Foxconn told Reuters in a statement the task force described in this story
is “not grounded in facts” and there were “no meetings or any other
contact.”

 

“There have also been no other extraordinary actions taken by the management
team.” It did not elaborate.

 

Luxshare declined to comment. Apple did not respond to a Reuters request for
comment.

 

‘BLOOD IN THE WATER’

 

Luxshare was founded in 2004 by Grace Wang, who told Taiwan’s Business Today
in July that she was once a worker at Foxlink, owned by Gou’s brother, T.C.
Gou.

 

Its journey up Apple’s value chain has been driven in part by acquiring
smaller components makers, starting with the manufacturing of connector
cables for the iPhone and Macbook through a 2011 acquisition of its Dongguan
neighbour Lanto Electronics, then by making acoustic components for the
iPhone, and eventually by manufacturing airpods.

 

The company’s revenue has risen in tandem with its advance up Apple’s value
chain - sales in 2019 hit 62.5 billion yuan, up 75% year-on-year.

 

That’s roughly 5% of Foxconn’s revenue, formally called Hon Hai Precision
Industry, although investor bets on the company’s prospects have lifted its
market value to roughly $20 billion above the Taiwan firm’s $39 billion
market capitalisation.

 

Luxshare now gets 58% of its revenue from Apple, according to Morningstar
Research

 

The company’s July acquisition of Wistron’s iPhone plants in Kunshan marks
its most significant deal yet, which Fubon Research said could help Luxshare
capture up to 30% of iPhone production within the next five years.

 

Two of the sources familiar with Foxconn said Luxshare had also been
actively poaching from Foxconn. In one case, one of the sources said,
Luxshare offered 500,000 yuan ($75,009) cash upfront as a relocation subsidy
for a senior Foxconn employee to move family from Taiwan to China.

 

David Collins, a manufacturing consultant based in Taipei and Kunshan, says
that Chinese firms see both Foxconn’s legacy status, coupled with its move
away from China, as prime opportunity to usurp it.

 

“Foxconn’s share price is down roughly 50% from two years ago. They see
blood in the water.”

 

($1 = 6.6658 Chinese yuan renminbi)

 

 

 

Coca-Cola's European partner makes $6.6 billion play for Australia bottler

SYDNEY/BENGALURU (Reuters) - The Coca-Cola Co's KO.N European bottler has
made a A$9.28 billion ($6.6 billion) buyout approach for Australian peer
Coca-Cola Amatil Ltd CCL.AX, a cut-price proposal that the target firm has
backed due to uncertainty related to the coronavirus.

 

The deal would be the biggest takeover involving Australia this year but
prices the target company below its market valuation in February, before
fears of a COVID-19 pandemic began to rock global markets and plunged the
world into recession.

 

The support from the Australians indicates expectations of an economic
recovery that could take years, a bleaker view than that of some local
economists who have pointed to improving economic indicators. Coca-Cola
Amatil’s profit has been hit by shutdowns of restaurants and pubs since
March.

 

The country’s second most-populous state, Victoria, is only now starting to
allow dine-in food retailers to open after a new wave of infections prompted
a second shutdown.

 

“We are really confident about the recovery that the business is making
(but) clearly there’s uncertainty over the next couple of years with the
economic situation, and just the risk of further health outbreaks that could
disrupt the business,” said Coca-Cola Amatil Chief Executive Alison Watkins
on an investor call on Monday when asked about the price.

 

Shares of Coca-Cola Amatil rose as much as 15% to A$12.31 in morning
trading, below the proposed offer price of A$12.75, indicating investors are
factoring in the possibility a deal might not eventuate.

 

On Feb. 20, the company's shares closed at A$13.07 but a month later they
were trading below A$8 amid widespread market gyrations as Australian
lockdowns took hold. The stock has been steadily rising along with the
broader market .AXJO as the country relaxes restrictions and new case
numbers decline.

 

A spokesman for The Coca-Cola Co, which owns 31% of the Australian company
and 19% of London-listed Coca-Cola European Partners PLC CCEPC.L (CCEP),
said in an email the deal would be "in the best interests of the shareowners
of both companies and of the Coca-Cola system overall".

 

The Australian company said CCEP would conduct due diligence before making a
binding offer. The deal would also need approval from Australia’s Foreign
Investment Review Board, which was granted increased powers this year to
block overseas deals deemed to be a security or supply chain risk.

 

CCEP in a statement said the deal would almost double its consumer reach,
“ultimately driving sustainable and faster growth, through geographic
diversification and scale.”

 

 

 

Canada's Cenovus to buy Husky for $2.9 billion as pandemic drives oil
mergers

(Reuters) - Cenovus Energy Inc CVE.TO has agreed to buy rival Husky Energy
Inc HSE.TO in an all-stock deal valued at C$3.8 billion ($2.9 billion) to
create Canada's No. 3 oil and gas producer, as a pandemic-driven collapse in
demand forces the industry to consolidate.

 

The combination, announced on Sunday, follows recent big deals in the United
States. Concho Resources Inc CXO.N agreed this month to a takeover by
ConocoPhillips COP.N for $9.7 billion. That followed Chevron Corp's CVX.N
$4.2 billion purchase of Noble Energy.

 

The collapse in fuel demand during pandemic lockdowns has put additional
pressure on companies in Canada, the fourth-largest global oil producer,
forcing them to cut costs.

 

They have been under stress for six years, dating back to the last downturn,
due to congested pipelines and the flight by foreign oil companies and
investors from Canada’s high production costs and emissions.

 

Consolidation makes the Canadian industry leaner and lowers costs, said
Jackie Forrest, executive director at the ARC Energy Research Institute,
adding that deal-making is likely just getting started.

 

The deal makes Cenovus an integrated producer with refineries in Canada and
the United States, adding to their existing half-ownerships in two U.S.
refineries.

 

Acquiring refineries, pipelines and storage offered a solution to Canada’s
often-congested pipelines, which have usually created price discounts, said
Cenovus CEO Alex Pourbaix.

 

“In one fell swoop, this deal will almost completely remove our exposure to
(West Texas Intermediate/Western Canada Select) differentials,” Pourbaix
told analysts on Sunday, referring to the discounts.

 

Pourbaix said the deal did not come in response to the risk that oil
pipelines will be more difficult to build if Democrat presidential nominee
Joe Biden wins the White House on Nov. 3.

 

HONG KONG TYCOON

After the deal closes, Cenovus shareholders would own 61% of the combined
entity, with Husky shareholders controlling the rest. Hong Kong tycoon Li
Ka-shing-controlled Hutchison Whampoa would hold a 15.7% stake in the new
company.

 

Hutchison Whampoa is the biggest shareholder of Husky currently, with a
40.2% stake.

 

Cenovus’ deal for Husky is valued at C$23.6 billion, including debt, the
companies said.

 

It is the biggest Canadian oil and gas deal in nearly four years, based on
enterprise value, said Tom Pavic, president of Sayer Energy Advisors, which
advises on M&A.

 

Cenovus said the deal would create Canada's third-largest producer based on
total company output behind Canadian Natural Resources Ltd CNQ.TO and Suncor
Energy Ltd SU.TO.

 

Husky shareholders will receive 0.7845 of a Cenovus share and 0.0651 of a
Cenovus share purchase warrant in exchange for each Husky common share,
according to the statement. Husky’s market value stood at C$3.2 billion as
of Friday’s close, which implies Cenovus is offering a 19.5% premium through
the all-stock deal.

 

Cenovus and Husky shares have lost 63% and 70% respectively this year,
exceeding the Toronto energy index .SPTTEN loss of 53%.

 

The combined company is expected to generate annual synergies of C$1.2
billion and will operate as Cenovus Energy Inc with headquarters in Alberta.

 

Pourbaix will serve as chief executive of the merged company with Jeff Hart,
currently Husky’s finance chief, becoming chief financial officer.

 

Cenovus said the combined company will be able to produce 750,000 barrels of
oil equivalent per day (BOE/d).

 

The transaction has been approved by the boards of both Cenovus and Husky
and is expected to close in the first quarter of 2021, the companies said.

 

RBC Capital Markets and TD Securities are acting as financial advisors to
Cenovus, while Goldman Sachs Canada and CIBC Capital Markets are acting as
financial advisors to Husky.

 

($1 = 1.3132 Canadian dollars)

 

 

 

Samsung affiliates' shares rise after Lee's death sparks hopes of shake-up

SEOUL (Reuters) - Shares in Samsung Electronics Co Ltd and affiliates rose
on Monday after the death a day earlier of Chairman Lee Kun-hee sparked
hopes for restructuring and stake sales, analysts said.

 

Investors were betting that such measures would be needed to pay a hefty
inheritance tax, estimated around 10 trillion won ($8.9 billion) for
stockholdings alone, although analysts were divided on which moves were most
likely.

 

Shares in Samsung C&T and Samsung Life Insurance rose as much as 21.2% and
15.7% respectively, while shares in Samsung BioLogics, Samsung SDS and
Samsung Engineering also rose.

 

“The inheritance tax is outrageous, so family members might have no choice
but to sell stakes in some non-core firms” such as Samsung Life, said NH
Investment Securities analyst Kim Dong-yang.

 

Investors have long anticipated a shake-up in the event of Lee’s death,
hoping for gains from any restructuring to strengthen de facto holding
company Samsung C&T’s control of crown jewel Samsung Electronics, such as
Samsung C&T buying an affiliate’s stake in the tech giant.

 

Son and heir apparent Jay Y. Lee has a 17.3% stake in Samsung C&T, which
owns a 5.01% stake in Samsung Electronics, the global leader in smartphones
and memory chips. Samsung C&T also has a 19.3% stake in Samsung Life, the
No.2 shareholder of Samsung Electronics.

 

“At this point, it is difficult to expect when Samsung Group will kick off
with a restructuring process as Jay Y. Lee is still facing trials, making it
difficult for the group’s management to begin organisational changes,” KB
Securities analyst Jeong Dong-ik said.

 

Lee is undergoing two separate trials over suspected accounting fraud and
stock price manipulation connected to a 2015 merger, and concerning his role
in a bribery scandal that triggered the impeachment of former South Korean
President Park Geun-hye.

 

His father Lee was the wealthiest stock owner in South Korea, with holdings
including 4.18% of Samsung Electronics common shares and 0.08% of preferred
shares, worth about 15 trillion won ($13.3 billion) in total.

 

He also held a 20.76% stake in Samsung Life worth about 2.6 trillion won,
and a 2.88% stake in Samsung C&T worth about 564 billion won as of Friday’s
closing.

 

 

 

Amazon wins arbitration order against Future's deal with Reliance

NEW DELHI/MUMBAI (Reuters) - A Singapore arbitration panel has put on hold
Future Group’s $3.38 billion asset sale to Reliance Industries Ltd, an
interim win for Amazon.com Inc, which had alleged the deal between the
Indian firms breached existing agreements.

 

Amazon received an emergency order to halt the companies from proceeding
with the deal until an arbitration tribunal is formed, a source with direct
knowledge of the matter told Reuters.

 

Amazon last year bought a 49% stake in Future Coupons Ltd, which owns a 7.3%
stake in Future Retail. In August, Mukesh Ambani’s Reliance decided to buy
retail, wholesale and some other businesses of Future Group in a deal valued
at $3.38 billion, including debt.

 

But Amazon’s investment came with contractual rights that include a right of
first refusal and a non-compete-like pact, media had reported, and Amazon
later started arbitration proceedings in Singapore.

 

“It’s a comprehensive victory for Amazon,” a source with direct knowledge of
the decision said. “They’ve won an injunction to stop the deal.”

 

Two sources familiar with the matter said the temporary injunction was not
automatically enforceable in India and that the order would have to be
ratified by an Indian court.

 

In a statement, Amazon said: “We are grateful for the order which grants all
the reliefs that were sought. We remain committed to an expeditious
conclusion of the arbitration process.”

 

Reliance Retail intends to complete the transaction under the terms of the
agreement with Future Group without any delay, Reliance Retail Ventures Ltd
(RRVL) said in a statement on Sunday.

 

“RRVL has entered into the transaction for acquisition of assets and
business of Future Retail Limited under proper legal advice and the rights
and obligations are fully enforceable under Indian Law,” the statement
added.

 

Future Group was not immediately reachable for comment.

 

 

 

 

Lufthansa to ground more planes during winter as pandemic bites

FRANKFURT (Reuters) - Deutsche Lufthansa LHAG.DE is preparing to ground more
planes than planned and cut working hours during the winter as a surge in
coronavirus infections is putting people off travelling.

 

Lufthansa and its subsidiaries Eurowings, Swiss, Austrian and Brussels
Airlines will ground 125 more aircraft during the winter than originally
planned, Chief Executive Carsten Spohr said in a letter to staff seen by
Reuters.

 

“It is unavoidable to ramp down operations during the winter of 2020/21 even
further and to put as many areas as possible in ‘hibernation’ from
mid-December,” he said.

 

Most of the group’s administrative staff will be put on a
government-sponsored reduced hours scheme, he added.

 

Lufthansa said this month said it will likely only offer up to 25% of the
last year’s capacity in the fourth quarter, as it reported a third-quarter
operating loss of 1.26 billion euros.

 

 

 

 

Botswana: President Masisi Spurs Young Farmer

Ramongala — Young farmer, Mooketsi Oleseng is set for a bright future in
small stock farming with the donation of a pedigree meat master ram by
President Dr Mokgweetsi Masisi

 

Speaking during the occasion at Garamongala lands in the Moshupa/Manyana
constituency on October 24, Dr Masisi said he was inspired to donate, by the
young man's alluring story of hardwork, perseverance and diversification.

 

That, the young farmer started it all with a driving school business then
reinvested the proceeds into the small stock business and other projects the
President said, was no small feat and wished the donation could spur him to
shepherd his businesses to long term survival.

 

 

The President unveiled that the meat master breed was a combination of
dorper and damara sheep, adding that it grows fast and fights predators
among others.

 

He shared that he started the initiated with his own stock inspired by the
national ideal of shared prosperity but other capable Batswana bought into
the vision and started contributing to the cause.

 

Assistant Minister of Agricultural Development and Food Security Ms Beauty
Manake who had accompanied the President, promised that her ministry would
arrange a small stock crash course at Lobu government farm in the Kgalagadi
South area for Mr Oleseng with a view to capacitating him to run the venture
as a business.

 

She said the ram would go a long way in improving Mr Oleseng's stock
quality.

 

In view of the export market, she argued that it was imperative for Batswana
to strive to produce both numbers and quality.

 

 

She further revealed that her ministry was racing against time to
re-engineer such programmes as LIMID and ISPAAD to make them more relevant
to farmers.

 

She said President Masisi also urged the ministry to come up with area
specific programmes that would sufficiently address the needs of farmers
across the country rather than taking a blanket approach.

 

The Moshupa/Manyana MP Mr Karabo Gare in his vote of thanks, applauded
President Masisi for the insight.

 

Mr Gare also Minister of Agricultural Development and Food Security
confirmed that government had secured a lucrative small stock market outside
the country and urged residents and Batswana at large to take advantage of
the dispensation.

 

Kgosi Kebinatshwene Mosielele of Manyana for his part said the nation was
blessed to have a leader who had the welfare of the nation at heart and
encouraged all Batswana to take advantage of the available opportunities and
free themselves from the shackles of poverty.

 

 

In an interview on the sidelines of the event Vision 2036 coordinator Mr
Christopher Molomo stressed that the nation needed numbers, quality and
diversity in terms of breeds in order to compete for the small stock market
with other nations.

 

With the initiative, he said President Masisi was saying "Let's all go back
to the cross-roads and start doing farming as business," he said. Given the
fact that farming was the mainstay of the nation's economy at Independence,
he argued that it was not a big ask.

 

Mr Oleseng meanwhile described the donation as a balm for his soul and a
springboard to greater things ahead.

 

Emotionally charged, he promised to someday donate the ram's offsprings
towards the same cause and help President Masisi help other Batswana.

 

He shared that he started the small stock business in 2011 after some
learner drivers had paid him with 10 goats and later bought six sheep 2016
in the process.

 

As the symbiotic relationship continued, he sold 22 goats to buy two cars
for the driving school business and other projects like shelter for his
family.

 

Altogether, he sold 54 goats and now left with 118 and 47 sheep.

 

Meanwhile President had earlier on donated a Kalahari red buck to a farmer
at Gakgolomu farms near Lotlhakane West still in the constituency.-Botswana
Daily News.

 

 

 

South Africa borders re-open, but won’t be “business as usual”

International students are finally able to enter South Africa to take up
study programs following the re-opening of its international borders at the
beginning of October. However, challenges remain for the ELT sector as
several important student markets remain on the restricted travel list.

 

Kerrie gained international print and online media experience during five
years of working in various newsrooms and the music industry across Ireland,
Australia and the UK. After completing a Master's in Journalism at the
University of Limerick in Ireland, Kerrie kicked off her media career as a
reporter for The Irish Examiner before moving to Sydney to take on the role
of Content Manager for concert streaming site Moshcam.

"Those of us committed to internationalisation will be delighted to welcome
and assist returning students"

 

Following the incremental re-opening of South Africa’s tourism economy, it
was announced that international borders could partially re-opened on
October 1, allowing students to visit, study and travel in South Africa.

 

“The industry is in a much more positive position than what was expected
only a few short months ago”

 

“In the case of South Africa, most of the international students are from
the [ Southern African Development Community] region,” said Orla Quinlan,
president at the International Education Association of South Africa.

 

She told The PIE News that during the lockdown period, the majority of
students had stayed with friends and relatives inside the borders of South
Africa.

 

“Those who could not make arrangements to get outside the country had
nowhere else to go before lockdowns were accommodated on campuses across
South Africa,” she explained.

 

In preparation for advising the minority of international students
returning, IEASA hosted a webinar for international office staff from all
universities across the country to clarify the correct information to pass
on to students.

 

“At Rhodes University where I am based, we sent information to all of the
international students to clarify their situation with visas, the protocols
to return to the country and to the campus,” Quinlan continued.

 

The news of borders re-opening was a welcome surprise for the ELT sector,
where schools had been “waiting in limbo” according to Education South
Africa.

 

EduSA schools were authorised to re-open on May 31, however, the ELT
association said opening was not seen as a financially viable option for
most as the international borders were still closed, with the majority
continuing to offer online tuition to their remaining students.

 

EduSA said that schools which remained closed have started building towards
resuming face-to-face classes, with most set to be operational by the
beginning of December, and all schools planning to re-open by the middle of
January 2021.

 

“The re-opening of borders, however, is only the start of the industry’s
recovery in South Africa,” EduSA CEO Torrique Borges told The PIE.

 

He explained that the government has implemented a traffic light system,
whereby nationals from countries with a low (green) or medium (amber) risk –
such as key ELT market, Saudi Arabia – may enter the country as before,
although with Covid-19-specific entry requirements.

 

Meanwhile, nationals from high (red) risk countries are subject to
restricted travel.

 

But while these developments are a reason for optimism, the high-risk
country classification does have its own challenges for the industry, Borges
noted.

 

“The list is supposed to be updated every two weeks, which causes booking
uncertainty amongst potential travellers, as countries can be added or
removed from the list every two weeks.

 

“[Additionally] a number of important, visa-exempt markets are currently on
the red list
 including Brazil, Italy, Germany and France.”

 

However, Borges explained nationals from high-risk countries can still enter
South Africa should they have a minimum stay of at least three months or a
valid non-leisure visa, such as a study visa.

 

Borges said interest has slowly started to build for those intending to
study English in South Africa, but mainly from the African markets, as there
is more certainty with regards to travel due to their risk rating.

 

“There have also been many students from the rest of Africa on standby,
waiting for borders to re-open, which augurs well for the industry restart,”
Borges said.

 

“The list is supposed to be updated every two weeks, which causes booking
uncertainty”

 

“While the high-risk list poses its own challenges, the industry is in a
much more positive position than what was expected at this time only a few
short months ago.”

 

Quinlan added: “Those of us committed to internationalisation will be
delighted to welcome and assist returning students.

 

“I was outside South Africa, when lockdown happened, and had to be
repatriated so I personally empathise with the uncertainty of travelling at
this time, and I will do everything in my power to ensure that students have
the right information to hand.

 

However, she said looking at the trends in other countries, “we must
anticipate a second wave of Covid-19.

 

“When the students return, we will all have to continue to care for each
other and take precautions. Campus life will not be returning to ‘business
as usual’,” Quinlan noted--thepienew

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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

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Skype:         Bulls.Bears 



 

 

 


 

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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