Major International Business Headlines Brief::: 15 April 2021

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Major International Business Headlines Brief::: 15 April 2021

 


 

 


 <https://www.nedbank.co.zw/> 

 


 

 


ü  Crypto firm Coinbase valued at more than oil giant BP

ü  The woman building HSBC's 3,000 roaming banker army

ü  US poised to impose sanctions on Russia for cyber-attacks

ü  James Dyson says Brexit has given him 'freedom'

ü  Tesco counts cost of Covid trading as profits drop

ü  Is Alibaba's fate a warning to China’s tech giants?

ü  Nigeria: NNPC Targets Four Months for Completion of Borno Gas Plant

ü  East Africa: Kenya Overtakes Somalia as Main Exporter of Charcoal in the Region

ü  Namibia: New Sand Mining Regulations in the Works

ü  Uganda: Kenyan Officials in Uganda to Verify Sugar Production Capacity

ü  Nigeria: France to Strengthen Trade Ties With Nigeria

ü  Asian shares defensive, dollar struggles near 1-mth lows

ü  Judge in Texas lawsuit against Google issues protective order

ü  Japan state-backed funds consider offer for Toshiba -report

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Crypto firm Coinbase valued at more than oil giant BP

Cryptocurrency firm Coinbase, which runs a top exchange for Bitcoin and other digital currency trading, hit a market value of nearly $100bn (£72.5bn) in its stock market listing.

 

Shares debuted on the Nasdaq at a price of $381, but later closed below $330.

 

The initial valuation put Coinbase ahead of many well-known firms, such as oil giant BP and key stock exchanges.

 

The listing was seen as the latest step toward cryptocurrencies gaining wider acceptance among traditional investors.

 

The price of Bitcoin surged more than 300% last year - and has climbed even higher in 2021 - as firms including Tesla, Mastercard and BlackRock unveiled plans to incorporate digital currencies into their businesses.

 

It hit a record of more than $63,000 on Tuesday, ahead of the Coinbase listing.

 

Less well-known digital currencies have also made gains with Dogecoin, which was created as a joke, rising more than 70% to more than 13 cents.

 

US-based Coinbase, which makes money primarily by charging transaction fees, has benefited from the soaring demand.

 

'Barometer' for crypto

Founded in 2012, Coinbase had more than 56 million users across more than 100 countries and held some $223bn in users' assets at the end of March.

 

It reported $1.8bn in estimated revenue in the first three months of 2021 - more than its total for all of 2020 - as interest in Bitcoin and other digital currencies boomed.

 

Compared to 2018, when investors reckoned Coinbase was worth $8bn in a private funding round, the firm's value has increased more than ten-fold.

 

Wednesday's listing was set to make Coinbase co-founder and chief executive Brian Armstrong one of the wealthiest people in the world. The 38-year-old, a former Airbnb software engineer, owns a roughly 21% stake in the company.

 

For outside investors, buying shares in Coinbase is seen as a potentially less risky way to tap into the activity in the crypto market, without investing directly in Bitcoin or other digital currencies, which have attracted warnings from financial regulators.

 

But Jane Foley, senior currency strategist at Rabobank said tougher rules, if enacted, could change the outlook for Coinbase.

 

"There does appear to be a little bit of a slow march towards acceptability," she said.

 

"There's a lot of concern that at some point the regulators, the central banks, might just say, 'well, no,' and make this a lot more difficult and at that point many people could stand to lose a lot of money."

 

The logo for Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron and others at Times Square in New York, U.S., April 14, 2021.

 

Last year, Coinbase's revenues hit $1.3bn, more than double that of 2019. Profits were $322m, compared to a loss of more than $30m in 2019.

 

On Wednesday, the company's share price initially jumped, hitting a high of nearly $430 at one point. But it later dropped back, hitting a low of $118 before ending the trading session at roughly $328.

 

That would give the firm a valuation of about $86bn.

 

This is a bit of a moment for crypto currency.

 

Digital currencies have long been seen as a high risk bet for investors - a 'you only live once' investment.

 

Over the years though, crypto has slowly gained some credibility - and has delivered astonishing returns for some investors. Several major companies have said they want to introduce crypto as a form of payment.

 

But this is perhaps an even greater step on the road to crypto credibility.

 

The attraction for investors is that it feels like a safer way to invest in crypto itself.

 

Coinbase's market price will be linked to how well currencies like Bitcoin and Ethereum are doing.

 

But the fact that the firm has such an range of currencies you can buy and sell means investors may feel they are more insulated from wild changes in the price of a single currency.

 

The big worry for investors taking a punt on crypto is that authorities will move to limit or even shut them down.

 

Mining some digital currencies can be hugely environmentally damaging, and the currencies themselves have been linked to organised crime.

 

Coinbase, then, may be seen as a more acceptable place for funds to take a punt on digital currencies.

 

Executives said the firm's performance would vary amid the swings in notoriously volatile digital currencies, but over the long term it was poised for growth.

 

"There's going to be volatility with new technologies and the companies associated with them. That's ok. That's a feature, not a bug," Coinbase president Emily Choi told the BBC.

 

"If you believe in the long term idea about digital value and what crypto assets create, you're just going to play this as a long-term thing."

 

Coinbase's market debut comes at a time when investors have shown high demand for newly listed companies, sending their valuations soaring at trading launches.

 

The firm listed its shares with a sale of existing stock, rather than issuing new equity as would occur in a more typical initial public offering.--BBC

 

 

 

The woman building HSBC's 3,000 roaming banker army

HSBC has started hiring hundreds of bankers to search for wealthy clients across China.

 

It is part of the bank's ambitious plan to employ 3,000 mobile bankers as part of a new venture.

 

The woman leading the rapidly-growing team is Trista Sun, who is helping a digital-banking push at HSBC that analysts say is long overdue.

 

Several big Western banks are also expanding into China including US firms Goldman Sachs and JP Morgan.

 

The venture, known as HSBC Pinnacle, is part of chief executive Noel Quinn's plan to pivot the bank more towards Asia and to focus on wealth management.

 

This week, media reports said HSBC was moving four top executives from London to Hong Kong as it accelerated its strategic shift, including its chief executives of wealth and personal banking, and global commercial banking.

 

Ms Sun told the BBC that her team had already started targeting the Chinese cities of Shanghai, Guangzhou, Hangzhou and Shenzhen to seek out wealthy clients for its insurance and investments business.

 

Pinnacle's goal is to grab a greater share of China's growing middle class, a segment it expects to swell to 600 million people by 2028. HSBC has about $1.6tn (£1.2tn) in funds from its wealth business, half of which comes from Asia.

 

The bank is not just competing with traditional rivals like Goldman Sachs and JP Morgan in this space. It also faces stiff competition in China from technology giants Alibaba and Tencent which have their own financial services via popular apps like Alipay and WeChat.

 

While Alibaba has faced a crackdown by Chinese regulators, it still has a market value around five times bigger than HSBC's.

 

But HSBC says recruiting thousands of bankers over the next five years should give it an edge over its fintech rivals.

 

"We are of the view that a digital and human hybrid financial planning model, co-created with customers and financial planners, is the way forward for affluent customers," Ms Sun told the BBC.

 

HSBC has also set up a fintech subsidiary in Shanghai, the first foreign financial institution to do so in mainland China.

 

Ms Sun previously worked at HSBC's headquarters in London and Hong Kong and said it gave her exposure to "very different regulatory environments, competitor landscape, customer pain points and technology adoption".

 

Bruce Pang, head of research at Hong Kong-based China Renaissance Securities, said HSBC's brand name gave it a strong advantage in China, where it had a long history.

 

"But the big elephant may be too heavy to move forward despite its international strengths," he added. "Chinese banks could also be better equipped to tap into growing incomes in the mainland with more solid local franchise and nationalism-fuelled loyalty."

 

In 1984, HSBC became the first foreign institution to secure a banking licence in mainland China. It now has about 160 branches there, more than any other foreign bank.--BBC

 

 

 

US poised to impose sanctions on Russia for cyber-attacks

The US government is set to issue a wide range of sanctions against Russia, according to reports.

 

The move would be retaliation for cyber-attacks aimed at the US, including alleged interference in the 2020 presidential elections.

 

The sanctions, expected as soon as Thursday, target more than 30 Russian entities and include the expulsion of at least 10 individuals from the US.

 

Diplomats will reportedly be among those targeted.

 

The administration of US President Joe Biden is also expected to issue an executive order barring US financial institutions from purchasing ruble-denominated bonds from June, sources told BBC partner CBS News.

 

The sanctions would come at a tense time for US-Russia relations.

 

In a call with Russian President Vladimir Putin on Tuesday, Mr Biden said the US would "act firmly" in defence of its national interests.

 

Mr Biden also proposed a meeting with Mr Putin "in a third country" that could allow the leaders to find areas to work together.

 

In a televised interview last month, he replied "I do" when asked if he thought Mr Putin was a "killer." He said the days of the US "rolling over" to the Russian president were done.

 

SolarWinds hack

Last year, cyber-security researchers identified a hack in a piece of software called SolarWinds — an intrusion that gave cyber-criminals access to 18,000 government and private computer networks.

 

Intelligence officials believe Russia was behind the attack. The hackers gained access to digital files of several U.S. government agencies, including the Treasury, Justice and State Departments.

 

Russia behind major cyber-attack, says Pompeo

Microsoft president Brad Smith said in February the SolarWinds hack was "the largest and most sophisticated attack the world has ever seen".

 

In a report last month, US intelligence agencies concluded the Russian president likely directed online efforts to help Donald Trump win a second term as US president

 

The US has also publicly warned Russia against aggressive actions in Ukraine. Russia is reportedly beefing up its military presence on Ukraine's' eastern border.

 

"The hostility and unpredictability of America's actions force us in general to be prepared for the worst scenarios," Kremlin spokesman Dmitry Peskov told reporters last week, anticipating the new sanctions.--BBC

 

 

 

James Dyson says Brexit has given him 'freedom'

Brexit has given the UK back its independence and boosted innovation, inventor Sir James Dyson has said.

 

"We've got our freedom, we can make trade agreements with other countries outside Europe [and] we can employ people from all around the world," Sir James told the BBC.

 

The latest statistics for February show UK exports to the EU remain below the same level last year.

 

He also defended moving Dyson's global headquarters to Singapore in 2019.

 

At the time, the pro-Brexit entrepreneur was accused of "hypocrisy", after claiming the UK would gain more from leaving the EU than it would lose.

 

"We're a British company - I've put a lot into this country," he said.

 

"I can't make things here and bring over all the components from the Far East here, assemble them here and then send them back to the Far East. That just doesn't work."

 

The interview came as Dyson announced plans to create 200 new jobs at its research facilities in Malmesbury and Hullavington, Wiltshire.

 

The plans are part of a £2.75bn global investment plan into emerging technologies and products, announced in November.

 

Sir James said the end of the UK's transition period with the EU had enabled Dyson to hire the engineering talent it was lacking in the UK.

 

Freedom of movement between the UK and EU has ended and the government has introduced a points-based immigration system which it says "treats all applicants equally, regardless of where they come from".

 

But experts say UK companies who want to hire from outside the EU are in no better position than before Brexit while attempts to hire EU workers now face significant costs and administration that did not exist before.

 

"We have 60 different nationalities on this site. I employ them from all over the world," Mr Dyson said.

 

It is certainly true that Brexit, and specifically leaving the Customs Union, gives Britain freedom to do new trade deals without having to work through the EU's external trade policy.

 

So far, that freedom has been devoted to maintaining the level of access to certain overseas markets that British business already had by virtue of EU trade agreements.

 

Others are now possible and for some the US would be the big prize. But it won't be easy - food standards for example are a contentious issue - nand most economic analysis suggests the benefits will be very modest.

 

On hiring foreign nationals, Sir James could have employed non-EU people before. There were hoops to go through and even with the new immigration system there still are. The terms of Brexit make it more difficult for EU nationals than it was while the UK was a member.

 

Sir James said the reason he had to move Dyson out to Asia was because Dyson's British suppliers "didn't want to expand with us".

 

When asked whether he could be making more innovation happen in the UK, he said: "I've invested about £2bn on this site [in Wiltshire].

 

"I'm taking on more people, I employ 4,000 people here, I pay a large amount of tax here."

 

He said that the invention of the Oxford-AstraZeneca vaccine showed that the UK had "an independence of spirit" that was now able to shine through.

 

AstraZeneca is a UK-Swedish company. Development of the vaccine begun during the Brexit transition period when the UK was still bound by EU regulation.

 

"We had to develop our own... a world record-beating vaccine produced in record time, and that's because we produced it."

 

Sir James said that Asia was the fastest growing market in the world and that it was "very important" for Dyson to have a presence there.

 

"It would be arrogant to think that we could design and develop products for Asia and Britain," he said.

 

"We can develop technology, but understanding what Asians want and what works in the market - we have to be there, we have to be immersed in it."--BBC

 

 

 

Tesco counts cost of Covid trading as profits drop

Tesco has announced a rise in sales but a sharp fall in full-year profits after spending nearly £900m to carry on trading through the Covid pandemic.

 

The UK's largest supermarket said "exceptionally strong" revenue grew by 7% to £53.4bn.

 

However, pre-tax profits dropped by nearly 20% following a number of Covid-related costs including giving full pay to staff off work ill or shielding.

 

It also incurred £535m after forgoing business rates relief.

 

The government announced the business rates holiday last March to help support retail, leisure and hospitality companies through the pandemic.

 

However, supermarkets are classed as essential retailers and have been allowed to stay open during lockdown. Tesco said it would repay the rate relief following criticism over its decision to pay millions of pounds worth of dividends to shareholders.

 

Tesco's full year pre-tax profit fell from £1bn to £825m.

 

Richard Hyman, a partner at the retail consultancy TPC, said that trading through Covid had cost Tesco a lot of money: "In order to [trade through the pandemic] they've had to spend a lot of money looking after the health of both their customers and their staff and that's been very very costly," he said.

 

Tesco said its strong sales growth was boosted by a 77% rise in online sales. Like-for-like sales, which strips out revenue from shops opened or closed during the year, rose by 6.3% for the group.

 

The supermarket said that while some of the additional sales volumes would fall away as Covid restrictions eased, it expected a strong recovery in profitability as most of the costs incurred in the pandemic would not be repeated.

 

It said because of a "greater than usual level of uncertainty around sales volumes, mix and channel shift" it was difficult to predict operating profit for its retail business. However, Tesco said it expected it to recover to a similar level in the previous financial year.

 

Bank losses

The company also announced a £175m loss at Tesco Bank compared with a £193m profit in the previous 12 months.

 

It said there had been a "material decline" in customer spending because of Covid, leading to " lower levels of new business activity in loans and credit cards, lower credit card balances, and a reduction in ATM and travel money transactions".

 

It added: "Higher levels of unemployment and lower GDP forecasts resulted in an increase in the provision for potential bad debts."

 

Tesco said that while it expected the bank to return to profit in the next financial year, the pace and scale of recovery "is highly dependent on the economic outlook, which remains uncertain".

 

Tesco's share price fell by 2.65% to 225.96p in early trading.--BBC

 

 

 

Is Alibaba's fate a warning to China’s tech giants?

It's been a tough week for Chinese tech firms.

 

Over the weekend, Chinese billionaire Jack Ma's e-commerce giant Alibaba was fined $2.8bn (£2bn) by Chinese regulators, who said it had abused its market position for years.

 

Then on Monday, Chinese digital payments firm Ant Group - an affiliate of Alibaba - announced a drastic restructuring plan with regulators forcing it to act more like a bank than a tech firm.

 

And on Tuesday, 34 companies, the who's who of China's tech world, were summoned by officials and warned: let Alibaba be a lesson to you.

 

They've been given one month to "self-reflect" and comply with China's new rules for platform companies.

 

Alibaba is the grandfather of China's tech industry. It dominates the marketplace there with over 800 million users in China alone.

 

That is why it was a wake-up call for others in the tech sector when the firm was fined and officially reprimanded.

 

The investigation into Alibaba determined that it had abused its market position for years by restricting merchants from doing business or running promotions on rival platforms. The fine amounts to about 4% of the company's 2019 domestic revenue.

 

Industry players tell me "everyone is tense". The big firms are worried they're next.

 

Companies like Tencent, JD.com, Meituan, Bytedance and Pinduoduo are all looking at Alibaba's experience, and trying to avoid crossing any red lines set by Beijing.

 

No-one can be more powerful than the Party

On the face of it, Alibaba's fine is about increased regulation in the sprawling Chinese tech sector, and for many it is a good sign that the market has matured.

 

"If you read the laws, Chinese regulators are trying to be more forward looking and think ahead, in an attempt to regulate an industry that is moving so fast," says Rui Ma, a China tech analyst and co-host of the podcast Tech Buzz China.

 

"They are including the use of algorithms, not just market share. They are trying to understand the platform economy and trying to be in line with what more developed economies are doing."

 

But the moves are also seen as political.

 

They are an indication that under President Xi Jinping, nothing can be bigger or more powerful in the lives of ordinary Chinese people than the Communist Party.

 

These companies have created an alternative virtual world for Chinese people, and have a huge hold over their lives. You can't get through a day without accessing one of these apps in China.

 

But that same influence over the lives of Chinese people puts them in direct competition with the Chinese Communist Party.

 

Sources in China's financial circles tell me they suspect it "irked a lot of the top leadership in Beijing" when the godfather of Chinese tech Jack Ma made a speech dismissing the traditional banking sector last year.

 

The speech led to state media criticising Mr Ma's businesses Alibaba and Ant Group. Then Mr Ma and his team were summoned by regulators and the much-anticipated share market launch of Ant was suspended.

 

Observers tell me what Mr Ma said at that symposium has cost him dearly.

 

It is clear both Ant and Alibaba are keen to draw a line under these events.

 

In an investor call this week, Alibaba's executive vice-chairman Joe Tsai said: "From a regulatory standpoint….in our case we have experienced the scrutiny and we're happy to get the matter behind us."

 

He added: "I think on a going forward basis, globally the trend is that regulators will be more keen to look at some of the areas that you could have unfair competition."

 

China tech's 'Wild West' is changing

Chinese tech firms were born and grew up in an environment with little or no regulation.

 

The sector operated a bit like the Wild West, with a "build it and they will come" philosophy.

 

And for a long time the government actively encouraged that.

 

"China has had national schemes to promote entrepreneurship and innovation," Angela Zhang, associate professor at the University of Hong Kong tells me.

 

She is an expert on Chinese law and is the author of a recent book called Chinese Antitrust Exceptionalism.

 

"In the past regulators were a bit more lax in their approach. They used alternative regulatory tools which were more lenient to the tech firms."

 

But that regulatory landscape is changing as China tries to rein in these firms.

 

Killing the chicken to scare the monkeys

Prof Zhang says that while Beijing is keen to rein in the sector - it won't want to kill off the economy's golden goose.

 

"In Chinese there is a phrase, killing the chicken to scare the monkeys," she says. "Alibaba will be used as an example, as a lesson for other tech firms to learn from.

 

"If you put yourself in the shoes of the Chinese leadership, they definitely want economic prosperity. Growth is a major priority of the government. Alibaba's experience will ensure the others fall in line."

 

Rui Ma agrees, and says the rules will help to foster more innovation for smaller companies in China who up till now have been squeezed out by the big players.

 

"Local venture capitalists I've spoken to are generally supportive of these regulations," she says. "They think there's more opportunities to find younger, newer companies that never stood a chance before."--BBC

 

 

 

Nigeria: NNPC Targets Four Months for Completion of Borno Gas Plant

The Group Managing Director, Nigeria National Petroleum Corporation (NNPC), Alhaji Mele Kyari, has set four months for the completion of a gas-powered electricity facility in Borno to serve as an alternative to the incessant vandalism of on-grid facilities by insurgents.

 

Speaking during a visit to the Governor Babagana Umara Zulum of Borno State recently, the NNPC helmsman said the federal government was concerned about the discomfort brought about by the lack of electricity in Maiduguri and environs.

 

On the entourage of the GMD was the Head of Gas and Power, Yusuf Usman and representatives of Greensville Liquefied Natural Gas (LNG), a company that delivers gas to power plants and industries across the country and officials from the Distribution Companies (Discos).

"Our essence of coming to Maiduguri is to join you to resolve the power problem in Borno, particularly Maiduguri metropolis and its environs in the next four months," he stated.

 

Stressing that it was President Muhammadu Buhari's intention to deepen gas power consumption the country, particularly in the domestic market, Kyari noted that the easiest way to do it was to deliver gas to power and ultimately to industries.

 

"We have seen the opportunities and the challenges faced by the people in this part of the country, and it is pertinent to support your people have light restored back to this city," he said.

 

He noted that the dedicated power plant in Maiduguri would serve the current need of power supply not only in Maiduguri but to other parts of the neighbouring cities, saying that the NNPC was going to focus on the short term to see that within three to four months power is restored power back to the city.

 

In his comments, Zulum said Borno State has received tremendous support from the corporation, especially with the performing of a groundbreaking ceremony for the construction of the 200-bed capacity Infectious Diseases Hospital in Maiduguri, in addition to the ongoing construction of the Medical Diagnosis Centre.

 

"Power is very essential. With power, we can reduce the magnitude of the insurgency, because millions of people are earning their means of livelihoods through the use of power.

 

"I have seen the agony our people went through during the nationwide fuel crisis, where entrepreneurs, especially market women and youths were trooping into filling stations queuing to buy some litres of petrol for their domestic or business usage.

 

"The ongoing insurgency has cut off the entire Borno from the national grid in the last two or three months. We put in all our efforts and restored it, we saw the joy and jubilation the people of Borno demonstrated after the restoration. But unfortunately, after 48 hours, the same group of insurgents went back and destroyed the main tower again.

 

"We have no other alternative than to source for other solutions, instead of relying on the gridlines, as it is very difficult to man the poles. That informed our decision to contact NNPC and other power stakeholders to come to our aid, and I am very glad to have you here for this purpose," Zulum said.

 

Executive Chairman, Borno State Rural Electrification Board, Abdulsalam Mohammed, in his comments, noted that the gas power plant when established will not only supply power to Maiduguri but to other rural communities who need it for agricultural purposes.-This Day.

 

 

 

East Africa: Kenya Overtakes Somalia as Main Exporter of Charcoal in the Region

Kenya has overtaken Somalia as a source and destination of charcoal in the East Africa region despite a ban in its production in 2018, a new report shows.

 

The report by Global Initiative Against Transnational Organised Crime (GI-ATOC) dubbed 'Black Gold; The charcoal grey market in Kenya, Uganda and South Sudan' shows that Kenya is now a major transit point of charcoal coming from the neighbouring Uganda and South Sudan for local market and shipment to the Middle East where it's used to fuel hookah pipes.

 

Hookah pipes are the tubes through which shisha is smoked.

 

According to the report, Al Shabaab's diminishing control in Somalia has resulted in a decline in charcoal exports from the country to the Middle East thus making Kenya the leading export market for charcoal.

 

Kenya imposed a nationwide moratorium on production in 2018 to conserve the country's forests. The moratoriums did not extend to imported charcoal.

"Despite the moratorium, charcoal production still continues in Kenya," the report notes.

 

Charcoal producers

 

Forest (Charcoal) Regulations, 2009, requires all commercial charcoal producers to organise themselves into self-regulatory associations that issue members with permits for transportation of the commodity.

 

With the ban, however, charcoal producers were left without a legal means of operating.

 

The report notes that the powerful groups turned to imports as a source of livelihood while others turned to cross-border smuggling of the commodity, particularly on the Tanzania and Uganda borders.

 

According to the report, the onset of the Covid-19 pandemic that has resulted in massive loss of income has also pushed more Kenyans into charcoal trade as a source of livelihood.

"Before the first lockdown was imposed in April 2020, Busia was an important collection centre for charcoal. The Sofia market on the Ugandan side of the border was filled with Kenyan and Ugandan dealers and was a hive of activity, with charcoal being sorted and repacked for the Kenyan market. Before lockdown, at least 200-plus large truckloads of charcoal were offloaded in the Sofia market every day," says the report.

 

It notes that while Sofia market closed during the coronavirus-induced lockdown, trucks carrying charcoal continued to cross the border, although the number decreased to about 100 per day.

 

Charcoal trade

 

"In September 2020, it was estimated that over 4,000 people were actively engaged in the charcoal trade in Busia, Kenya,75 of whom had abandoned other income generating activities to participate in the charcoal trade, which locals referred to as 'black gold'," it says.

 

The study adds that community forests are the biggest source of charcoal in Kenya and that wood for charcoal is sourced from national game reserves like the Kora National Park, Tsavo East National Park and Kitui South Reserve, along with the woodlands in Meto, Nyakweri and Dakatcha.

 

"Kenya is also a destination country for timber from Ethiopia. Ethiopian timber is later made into charcoal for consumption in Kenya's northern towns, with some of it reportedly reaching Nairobi," the report adds.

 

Corruption has been cited as the lead facilitator in charcoal transportation in the country, with law enforcement authorities taking bribes to facilitate the commodities movement into and across the country.

 

'If you want to carry contraband just use charcoal. If you mention charcoal to police or any other law enforcement authorities, they immediately think about money (bribes). They don't want to screen the consignment," notes the report.-Nation.

 

 

 

Namibia: New Sand Mining Regulations in the Works

THE Ministry of Environment, Forestry and Tourism is in the process of crafting new regulations for sand and gravel mining following a national outcry about how sand and gravel extraction activities are being done.

 

This was announced by environment minister Pohamba Shifeta in parliament last Thursday.

 

"These incidents have not only caused serious destruction to the environment and loss of livelihoods to some communities, but it has affected some developmental projects.

 

"Precious lives have been lost especially children playing in these unrehabilitated pits, hence our reasons to enforce strict compliance," Shifeta said.

The new sand and gravel extraction regulations are being developed under the Environmental Management Act (Act No. 7 of 2007).

 

Shifeta said once adopted, the regulations will implement stricter measures and procedures, as well as ensure that culprits are punished accordingly.

 

The Namibian last week reported about deadly sandpits at villages in the northern regions, where residents detailed incidents of children drowning in them after they collected water.

 

Such reports and complaints by residents have escalated over the years.

 

Popular Democratic Movement parliamentarian Johannes Martin asked Shifeta about an environment clearance certificate that was issued to the Ondonga Traditional Authority to undertake sand mining activities at the Epale village in the Oniipa constituency, Oshikoto region.

Martin asked why the environment ministry processed the application despite detailed irregularities highlighted by community members. He also asked Shifeta whether he would give an audience to the aggrieved community members.

 

In October, residents of the Epale village in the Oniipa constituency, Oshikoto region, submitted a petition to the environment ministry to revoke an environmental clearance certificate approving the digging of new sand pits in their village.

 

They also cited issues that were overlooked, violations to the Environmental Act, and alleged misleading information that was provided to the environmental commissioner during the application process.

 

"Considering all thi, minister, all the affected and interested parties requested your audience and urged your ministry to reconsider the decision about the issued environmental clearance certificate," Martin said.

 

Shifeta said his ministry takes the matter and allegations seriously, and that all evidence provided will be considered during a hearing.

 

He added that the environment ministry has over the years withdrawn and cancelled a number of environmental clearance certificates where non-compliance to conditions and environmental management plans were observed.

 

Shifeta also said the ministry, with support from law enforcement agencies, have managed to close a number of sites where illegal sand mining was being carried out.

 

Ministry spokesperson Romeo Muyunda said the ministry expects to complete the new regulations in the next two to three months.

 

"The implementation may only start towards the end of the year," Muyunda said.

 

In the meantime, the ministry will continue to implement the current strategies until the new regulations are in place, he added.-Namibian.

 

 

Uganda: Kenyan Officials in Uganda to Verify Sugar Production Capacity

A Kenyan delegation is currently in Uganda for bilateral talks over strained trade relations.

 

The Kenyan team is led by Betty Maina, Cabinet Secretary for Industrialization, Trade, and Enterprise Development.

 

Uganda's Foreign Affairs Ministry said the Kenyan and Ugandan officials will conduct a sugar verification exercise as well as discuss market access challenges for poultry, maize and dairy products, and other non-tariff barriers.

 

Earlier this year, Kenya restricted importation of milk, maize and poultry products from Uganda, and Ugandan legislators threatened to retaliate.

 

Uganda's President Yoweri Museveni on Tuesday said he met with the Kenyan team and discussed trade relations between the two countries in light of trade barriers.

 

"Competition has been generated by the fact that we are trading in a common market, however, the ultimate logic of EAC (East African Community) integration is that one who is more efficient should be allowed to sell. We should eliminate irregularities with strategic analysis, not endless fights," Mr Museveni said.

Grace Adong, Uganda's acting Permanent Secretary of the Ministry of Trade, Industry and Cooperatives, said the interactions between the two sides aim at building a strong regional block with less trade restrictions.

 

Ambassador John Weru, the Principal Secretary of Kenya's State Department for Trade, was positive that the ongoing week-long deliberations would bear positive results.

 

The team will this week embark on a sugar verification mission which will see them visit more than 14 sugar factories around the country to ascertain Uganda's sugar production capacity.

 

Uganda's annual sugar production capacity currently stands at approximately 550,000 tonnes but its domestic consumption is 360,000 tonnes, according to official data.

 

In March 2019, Uganda secured concessions to increase its sugar quota to Kenya from 36,000 to 90,000 tonnes on condition that it meets the rules of origin criteria established under the EAC.

 

Following a midterm review in December 2019, the two parties noted that the sugar exports had increased from 36,000 to 57,273 tonnes as of October.

 

It was then agreed that a verification mission would be undertaken by Kenya to ascertain the origin of Uganda's sugar before Nairobi can consider increasing the quota to 90,000.

 

Uganda's sugar stocks have now accumulated to 65,000 tonnes worth $40 million and are held in various stores across the country.

 

Uganda's Trade ministry says the country needs to find new exports markets in the region to export its surplus.-East African.

 

 

 

Nigeria: France to Strengthen Trade Ties With Nigeria

France Minister in charge of Foreign Trade and Attractiveness, Franck Riester, is presently visiting Nigeria as part of efforts to strengthen the trade ties between both countries.

 

The visit is a follow up on the priorities set by France President, Emmanuel Macron, during his official visit to Nigeria in July 2018, and his desire to build a new partnership between Africa and France.

 

According to a statement from the French government, as the largest economy in Africa and the economic engine of West Africa, Nigeria is indeed a major partner for France, the first in sub-Saharan Africa with bilateral trade amounting to a total of $4.5 billion in 2019 (2.3 billion USD in 2020, due to the Covid-19 pandemic).

 

It explained that the Minister will have several official meetings in Abuja and Lagos, in order to underline the importance of the bilateral economic relationship and to prepare the summit on the financing of African economies in Paris, expected to hold on May 18.

 

"The objective of the mission is also to further strengthen the links between the French and Nigerian private sectors. In this regard, the Minister will have in-depth discussions with the main Nigerian economic actors to strengthen bilateral cooperation and investments, both in Nigeria and in France, particularly in the logistics sector.

 

"He will meet with young Nigerian entrepreneurs in the cultural and creative industries sector, to discuss the major role of their country in African creativity and the development of the African entrepreneurial ecosystem, with the support of France," the statement added.

 

The Minister is also expected to open the, "Choose Africa" conference, a €3.5 billion initiative by President Emmanuel Macron dedicated to supporting the development of start-ups and SMEs in Africa to enable the continent to benefit fully from the opportunities of the digital revolution.-This Day.

 

 

 

Asian shares defensive, dollar struggles near 1-mth lows

Asian shares were on the backfoot on Thursday following mixed cues from Wall Street where a sharp sell-off in the largest bitcoin exchange Coinbase (COIN.O) hit tech shares while the dollar index struggled near one-month lows.

 

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) paused after two straight days of gains. It was last at 690.53, a long way from a record high of 745.89 touched in February.

 

Japan's Nikkei (.N225) rose 0.2% while South Korea's KOSPI index (.KS11) was up a tad.

 

Australia's benchmark index (.AXJO) slipped 0.4% as miners were dented by weaker prices for iron ore and coal.

 

Global shares have surged in recent weeks led by successful rollouts of COVID-19 vaccines around the world, U.S. stimulus packages and higher U.S. inflation expectations.

 

"However, the back up in treasury yields has begun to exert a valuation test on some parts of the global equity markets with value outperforming growth," Jefferies analysts wrote in a note.

 

"Equally, there are fewer stocks offering decent yields and higher capital gains."

 

JPMorgan Asset Management was trimming its overall Emerging Markets (EM) exposure "mostly driven by a less sanguine outlook on EM Asia," its global multi-asset strategist Patrik Schowitz wrote in a note.

 

"China has now recovered enough that policymakers can afford to be more conservative and worry more about containing debt and property market risks. That will be a headwind to China equities, despite the solid economy," Schowitz added.

 

Chinese shares started in the red on Thursday with the blue-chip CSI300 index (.CSI300) down 0.2%.

 

JPMorgan Asset Management is less keen on tech shares, which Schowitz said, should have less upside to earnings expectations in the near-term and are "very expensive" relative to value.

 

Overnight, Wall Street ended mixed with the tech sector the biggest underperformer after Coinbase was sold off on its listing day, dragging the Nasdaq lower. read more

 

Coinbase's listing coincided with a record price for Bitcoin, which rose to just under $65,000 but the euphoria proved to be short-lived as the stock fell nearly 20% from its opening level to trade at $328.

 

"That would be a bit painful if you bought the stock at its intraday peak of $429.54," said NAB strategist Rodrigo Catril.

 

U.S. bank earnings were the other big focus with Goldman Sachs (GS.N), JP Morgan (JPM.N)and Wells Fargo (WFC.N)reporting strong results.

 

In currencies, the U.S. dollar was on track for a fourth consecutive day of fall against its major counterparts.

 

Forex investors are keeping an eye on Treasury yields for direction with a potential market panic about accelerating inflation seen as the biggest risk to sentiment.

 

Major policymakers, including the U.S. Federal Reserve, have repeatedly said there is still plenty of labour market slack to keep inflation in check for a several years though there might be temporary spikes which they are willing to overlook.

 

Against the Japanese yen, the dollar slipped for a fourth day to 108.93. The euro rose to $1.195 and sterling was a shade higher at $1.3790.

 

The Australian dollar hovered near three-week highs at $0.7736 after posting its biggest one-day percentage gain since Feb. 19 on Wednesday. Its New Zealand peer was upbeat at $0.7160, a level not seen since March 23.

 

In commodities, oil gave back some of the gains from Wednesday when it climbed nearly 5% on signs of increasing crude demand.

 

Brent crude was off 40 cents at $66.18 a barrel. Light crude slipped to $62.75.

 

Gold was 0.1% higher at $1,738.8 an ounce.- The Thomson Reuters Trust Principles.

 

 

 

Judge in Texas lawsuit against Google issues protective order

The judge hearing the Texas antitrust lawsuit against Alphabet Inc’s (GOOGL.O) Google put limits on what the search giant’s in-house lawyers can see in an order aimed at ensuring that confidential information used in an upcoming trial remains secure.

 

The issue is a key one for companies that have not been identified but that gave information to the Texas attorney general's office for its investigation and fear that their confidential data, like strategic business plans or discussions about negotiations, could be disclosed to Google executives.

 

The order issued by Judge Sean Jordan of the U.S. District Court for the Eastern District of Texas allows Google's in-house counsel to see information deemed "confidential" but they are then limited in advising on some competitive and other decision-making for two years regarding the companies whose data they see.

 

In-house counsel for Google is barred from seeing "highly confidential" information under the order unless it is given permission by the court or the affected company.

 

The Texas lawsuit accuses Google of violating the law in how it dominates the process of placing ads online. It alleges Google quietly teams with its closest online advertising competitor, Facebook Inc (FB.O), and that it uses the excuse of protecting users' privacy to act unfairly. Publishers complain that one result has been lower revenues.

 

Google denies any wrongdoing.

 

It is one of three big antitrust lawsuits filed against Google last year. read more

 

The protective order also requires people who receive confidential and highly confidential information to agree to allow electronic devices used in their work on the lawsuit to be searched if needed as part of a forensic investigation into a potential leak.-The Thomson Reuters Trust Principles.

 

 

 

Japan state-backed funds consider offer for Toshiba -report

Japan Investment Corp (JIC) and Norinchukin Bank are considering buying Toshiba Corp (6502.T), the Nikkan Kogyo Shimbun reported on Thursday, a Japan-led bid which may be more palatable to regulators and management than rival offers by foreign funds.

 

Private equity fund CVC Capital Partners, which has already made a preliminary offer for Toshiba, may join the bid to take the conglomerate private, but the Japanese funds would lead the offer, the newspaper said.

 

The newspaper said other government-affiliated funds may join the bid.

 

JIC declined to comment when contacted by Reuters, whereas Norinchukin officials were not immediately available.

 

CVC earlier this month proposed to take Toshiba private, and is expected to soon provide details of its $20 billion proposal. read more

 

The chairman of Toshiba's board has criticised CVC's offer so far as "lacking in substance", and has also said it would require cautious consideration due in part to regulations over foreign investment in Japanese companies with strategic technologies.

 

Toshiba's technology is used in missile guidance and other defence systems, for example.

 

Media reports have also named KKR & Co Inc (KKR.N) and Brookfield as also considering offers for the company. The Nikkei newspaper on Wednesday said CVC was planning to team up with Bain Capital.

 

The latest report comes a day after Toshiba appointed a new chief executive after controversy over previous leader Nobuaki Kurumatani who faced criticism over governance issues.-The Thomson Reuters Trust Principles.

 

 

 

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

Independence Day

 

18/04/21

 


 

Public Holiday in lieu of Independence Day falling on a Sunday

 

19/04/21

 


 

Workers Day

 

01/05/21

 


FCB

AGM 

virtual

06/05/21 : 3pm

 


 

Africa Day

 

25/05/21

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

Dairibord

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <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) 2021 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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