Major International Business Headlines Brief::: 20 April 2021

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Major International Business Headlines Brief::: 20 April 2021

 


 

 


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ü  Bank of England to consider digital money plan

ü  Tesco fined £7.56m for selling out-of-date food in Birmingham

ü  UK government intervenes in Nvidia takeover of chip designer Arm

ü  HSBC boss Noel Quinn scraps executive floor at London HQ

ü  Car insurance sees biggest price drop in six years

ü  Why Super League plan makes financial sense for top clubs

ü  London Capital and Finance: Treasury expects £120m compensation bill

ü  Facebook: Our staff can carry on working from home after Covid

ü  Asian shares up on China gains but tech worries weigh

ü  United Airlines loss bigger than feared on higher fuel costs, capacity
slide

ü  IBM quarterly sales growth highest in over two years on cloud strength

ü  Google, Apple executives to testify in app store hearing on Wednesday

ü  U.S. House of Representatives approves cannabis banking bill

ü  Australia's Afterpay considers U.S. listing as 'buy now, pay later' takes
off

ü  Tanzania: Tigo Tanzania and Zantel Up for Sale

ü  South Africa: Durban Port to Reclaim Its Place As the Best-Performing
Port in Africa

ü  Namibia: Stalled Rural Electrification Project Gets Green Light

ü  Gambia: Farato, Jambur Rejoice As Road Construction Set to Begin Earnest

 

 


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Bank of England to consider digital money plan

The Bank of England and the Treasury have announced they are setting up a
taskforce to explore the possibility of a central bank digital currency.

 

The aim is to look at the risks and opportunities involved in creating a new
kind of digital money.

 

Issued by the Bank for use by households and businesses, it would exist
alongside cash and bank deposits, rather than replacing them.

 

No decision has been taken on whether to have such a currency in the UK.

 

However, the government and the Bank want to "engage widely with
stakeholders" on the benefits and practicalities of doing so.

 

The taskforce will be jointly led by the Bank's deputy governor for
financial stability, Sir Jon Cunliffe, and the Treasury's director general
of financial services, Katharine Braddick.

 

The Bank has previously said it is interested in a central bank digital
currency (CBDC) because "this is a period of significant change in money and
payments".

 

The use of cash in financial transactions has been steadily declining in
recent years, while debit card payments have been on the rise. Use of credit
cards and direct debits have also been increasing.

 

The Bank also sees having its own digital currency as a way of "avoiding the
risks of new forms of private money creation", including crypto-currencies
such as Bitcoin.

 

"If a CBDC were to be introduced, it would be denominated in pounds
sterling, just like banknotes, so £10 of CBDC would always be worth the same
as a £10 note," the Bank said.

 

"CBDC is sometimes thought of as equivalent to a digital banknote, although
in some respects it may have as much in common with a bank deposit.

 

"Any CBDC would be introduced alongside - rather than replacing - cash and
bank deposits."

 

Enter Britcoin. The Bank of England has been pontificating about digital
currencies for some time. Now it and the Treasury will seriously look into
establishing an alternative digital currency to be used by households and
businesses. The flotation of Coinbase and the stellar performance this year
of various crypto-assets such as Bitcoin and Ethereum is the backdrop.

 

It would basically be a digital version of sterling, backed by the Bank of
England, that could change the payments system, the plumbing of the
financial system. It would not be a Bitcoin-style speculative asset with
wild fluctuations in value. But there will be limited appeal for the fans of
crypto, who invest precisely because of their scepticism about central
banks.

 

Instead, the revolutionary thing here could be the direct relationship that
ordinary citizens might have with the central bank, which cannot go bust. It
could yield simple, direct means of stimulating the economy and even
applying negative rates. Central banks would in theory know when and where
every e-cash transaction occurred. China is already ahead in its digital
yuan experiments. Part of the rationale is to ensure that the UK remains at
the forefront of financial innovation.

 

Most of the world's central banks are looking into the possibility of
creating such a currency, but the only one already in existence is China's
digital yuan, which is currently undergoing public testing.

 

Among the objectives of the UK taskforce is monitoring international
developments, "to ensure the UK remains at the forefront of global
innovation".

 

The Bank also announced the creation of a CDBC engagement forum and a
technology forum, as well as a CBDC unit within the Bank itself, overseen by
Sir Jon.

 

No timetable was announced for the taskforce's operations.-BBC

 

 

 

Tesco fined £7.56m for selling out-of-date food in Birmingham

Tesco has been fined £7.56m for selling out-of-date food at three stores in
Birmingham.

 

Offending items were found at two Tesco Express stores, in the city centre
and Bournville, and a Tesco Metro in Bristol Road South.

 

The fine was handed down after Tesco Stores Ltd admitted 22 breaches of the
Food Safety and Hygiene Regulations, which happened between 2016 and 2017.

 

Tesco said it took "immediate action" to rectify problems.

 

The grocery company was given the penalty at Birmingham Magistrates' Court
on Monday and further ordered to pay prosecution costs of £95,500, the city
council said.

 

The prosecution by its environmental health department came after complaints
were received by the local authority about food being sold past its use-by
date, triggering an investigation.

 

Food inspectors visited three of the company's city food retail premises.
The Tesco Metro in Bristol Road South has since been re-branded under
Tesco's discount chain, Jack's.

 

Date-checking for the firm is now externally approved by Hertfordshire
County Council because the company's Welwyn Garden City head office is
located in that local authority's area.

 

Latest news from the West Midlands

A Tesco spokesman said: "We're disappointed that a small number of
out-of-date products were found on sale in three stores in 2016/17.

 

"The safety of our customers is always our priority and these incidents are
not representative of the high standards of safety and quality we expect in
Tesco stores.

 

"We took immediate action to address this at the time and we want to
reassure our customers that we have robust procedures in place to make sure
that this doesn't happen."

 

The grocery company was also ordered to pay a £170 victim surcharge.--BBC

 

 

 

UK government intervenes in Nvidia takeover of chip designer Arm

The UK government is to examine the sale of computer chip designer Arm
Holdings to a US company on national security grounds.

 

Japan's SoftBank intended to sell the UK tech company to Nvidia for about
$40bn (£29.5bn).

 

But Digital Secretary Oliver Dowden said he wanted the UK's competition
watchdog to assess its implications.

 

"Following careful consideration of the proposed takeover, I have today
issued an intervention notice," he said.

 

"As a next step and to help me gather the relevant information, the UK's
independent competition authority will now prepare a report on the
implications of the transaction, which will help inform any further
decisions."

 

Arm's technology is at the heart of most smartphones and smart devices
worldwide.

 

But there were concerns when the Cambridge-based designer - which licenses
its tech to the likes of Apple, Samsung and Huawei - accepted the offer from
Nvidia, a US graphics chip specialist.

 

In January, the Competition and Markets Authority (CMA) announced it was
looking into the deal amid worries it could lead Arm to withdraw, raise
prices or reduce the quality of its services to Nvidia's rivals.

 

Mr Dowden has now ordered it to begin a "phase one" investigation, which
will decide whether a full "phase two" investigation is needed that could
lead to the deal being blocked.

 

A spokesperson for Nvidia said: "We do not believe that this transaction
poses any material national security issues.

 

"We will continue to work closely with the British authorities, as we have
done since the announcement of this deal."

 

'Premier computing company'

Last year, more than 2,000 business leaders signed an open letter calling on
the prime minister to stop the merger, saying UK jobs and influence could be
lost.

 

Nvidia has promised to keep Arm based in the UK, to hire more staff, and to
retain its brand.

 

It said that the deal would create "the premier computing company for the
age of artificial intelligence".

 

Nvidia could face barriers from other regulators around the world.

 

China, in particular, has already made clear that it is not happy about a
deal which gives so much power to an American giant at a time when the US
has sought to deny Chinese firms access to chip technology.

 

The CMA will have until 30 July to submit its findings to the digital
secretary.

 

When Arm was sold to Japan's SoftBank just after the 2016 EU referendum, the
government celebrated the deal as a vote of confidence in the UK. Some had
misgivings about what they saw as the jewel in the crown of 21st Century
British technology falling into foreign hands, but guarantees that research
and development would be strengthened in Cambridge seemed to allay
ministers' concerns.

 

Then when SoftBank sold Arm on to the American chip giant Nvidia last year,
there were even louder complaints from the likes of Hermann Hauser who had
been instrumental in the founding of the company more than 30 years ago. But
it seemed there was even less likelihood of an intervention - what business
of the Competition and Markets Authority was a deal between a Japanese and
an American company?

 

But much has changed since 2016. Arm being bought by Nvidia is, it appears,
a national security concern now in a way that the Softbank deal was not.
Why? Well the vital importance of the semiconductor industry has become
clear in recent months, with chips at the centre of a US-China trade war and
chip shortages halting production at car plants.

 

There has also been a major shift in the UK's attitude towards industrial
policy. After three decades of a laissez-faire approach from both
Conservative and Labour governments there's a new willingness to intervene -
witness the move to spend taxpayers' money on a controlling stake in the
failing satellite business OneWeb.

 

With other governments and regulators around the world not convinced that
Nvidia owning Arm will be good for competition in the chip industry, it is
far from certain that this deal will go through.-BBC

 

 

 

HSBC boss Noel Quinn scraps executive floor at London HQ

Banking giant HSBC has confirmed that top managers in its Canary Wharf HQ
have lost their offices and will have to hot-desk on an open-plan floor.

 

It comes as HSBC pursues plans to shrink its office space by 40% in a
post-pandemic shake-up.

 

Boss Noel Quinn said the whole bank was embracing "hybrid working" and he
would no longer come in five days a week.

 

"My leadership team and I have moved to a fully open-plan floor with no
designated desks," he said on Linkedin.

 

Up to now, senior managers have been based on the 42nd floor of the building
in east London in their own private offices.

 

But in future, they will be jostling for workspaces two floors down, while
their old offices have been transformed into client meeting rooms and other
communal spaces.

 

Mr Quinn told the FT that the old arrangement had been "a waste of real
estate", adding: "Our offices were empty half the time because we were
travelling around the world."

 

In a separate post on LinkedIn he said that after more than a year working
from home, being based in an open plan office would allow him to "reconnect
with colleagues and friends [and] be able to speak to them informally".

 

'Hybrid working'

He added that most staff at the bank would be able to work part-time from
home in future.

 

"A minority of roles can be done wholly remotely. We estimate, though, that
most of our roles could be done in a hybrid way - and that includes myself
and the executive team of the bank."

 

At the same time, HSBC is pushing ahead with one of the banking industry's
most drastic responses to the pandemic, including cost-cutting plans that
will reduce its workforce by about 35,000.

 

Other firms in the sector have announced plans to embrace hybrid working as
employees signal their desire to commute less.

 

One big UK employer, the Nationwide building society, has indicated that it
does not intend to force people to return to the office if they have been
successfully able to work from home during the pandemic.

 

It said about two-thirds of its 18,000 employees had been working from home
for the past year.--BBC

 

 

 

Car insurance sees biggest price drop in six years

British motorists are facing the biggest drop in car insurance costs in
almost six years, a price comparison website has found.

 

Confused.com says the average cost of car insurance has fallen by £87 in 12
months due to lower risk of accidents.

 

This comes as average mileage dropped by 43% during the pandemic as driving
habits changed.

 

The cost of insurance for men fell by £91, a 14% fall year-on-year, while
female drivers are saving £82.

 

Confused.com's latest Car Insurance Price Index, in partnership with global
insurance broker Willis Towers Watson, tracked six million insurance quotes
during the first quarter of 2021.

 

The data showed motorists in the UK can now expect to pay an average of £538
on car insurance for the next year.

 

Yet if you've received your car insurance renewal in the last three months,
you might have seen your insurance premium go up by an average of £45 - an
amount derived from the insurance quotes tracked.

 

The price comparison site says this shows motorists are likely to pay more
if they opt to stick with their current insurer.

 

Consumer group Which? says that while it is good news that prices are coming
down, this doesn't necessarily mean that you are guaranteed to get a price
reduction on your car insurance quote.

 

"The reduction in premiums is clearly a reflection in quite a radical change
in driver behaviour, and people being on the road less as a result of the
pandemic, but in order for consumers to get the best deal on their car
insurance, they should spend time on price comparison sites," said Which?'s
head of money Gareth Shaw.

 

He added that the quote an insurer gives you depends on a set of
personalised circumstances, including the type of car you drive, where you
live, your driving history, your no-claims bonuses, the technology that
might be in your car, the age of your car, or even your relationship status.

 

"It might be an option but it really depends on where you are in your
contract and whether it's cost effective to switch," said Mr Shaw.-BBC

 

 

 

Why Super League plan makes financial sense for top clubs

image captionAvram Glazer, Joel Glazer and Bryan Glazer, pictured, are part
of the family that owns a majority stake in Manchester United, although
Avram sold some of his shares in March

Sports fans love a bit of jeopardy - a nail biting contest which can end in
glory or defeat. But business owners generally hate all of that.

 

Owners and business managers of football clubs have a peculiar problem.

 

As one former chief executive of a Premier League club told me: "I won't
know till the last day of the season if my budget for next year is going to
be £170m or £70m."

 

That is not only almost impossible to manage, it has another very important
consequence. Businesses with steady revenues are worth a lot more than ones
with erratic earnings.

 

In business terms it's known as getting a higher "multiple" - volatile
businesses are worth as little as five times average annual earnings,
whereas steady ones are worth up to 20 times or more.

 

Giants v minnows

This is what the European Super League is all about - making the clubs
involved worth more by eliminating the jeopardy of being relegated or
missing out on Champions League qualification.

 

Proposed Super League teams

This is the moment many football team owners have been waiting for -
particularly the American owners of Liverpool, Manchester United and Arsenal
- who know for themselves how much more stable and therefore valuable are
the earnings of American sports teams.

 

The backers of the Super League say that the existing Champions League was a
poor product - too many meaningless one sided games between minnows and
giants of European football before it got interesting.

 

Q&A: What is the new Super League?

'Big six' agree to join 'Super League'

They also argue that a more stable financial top to the football pyramid is
needed to ensure the cascade or trickle down to the smaller clubs that they
promise will increase as a result of this.

 

But many sports fans would argue the prospect of a romantic giant killing in
Real Madrid's Bernabeau stadium or Old Trafford is an essential part of the
game - while regular meetings between the great clubs normalise and make
humdrum what was once an exotic and rare event.

 

The backers have told the BBC this is not another extreme form of
negotiation to make Uefa cave to the big clubs' long-standing demands for
more control of the world's most prestigious club event - "this is really
happening, it's on, even if Uefa backs down".

 

The net financial debts of the top Premier League teams

If it does it will have far reaching implications for the existing leagues
around Europe.

 

Finishing in the top four of the Premier League is the biggest prize in
English football. The six teams joining the Super League have realised that
six doesn't go into four - two miss out every year.

 

'Cynical'

Not any more. An insider at the Super League admitted that the plan will
seriously dilute the value of the Premier League as a product - the race
which is one of its key attractions will be meaningless.

 

We have been down this road before and the former Premier League chief
executive suggested that the pandemic had provided a window of opportunity
for a very radical proposal that would not have a chance of succeeding in
normal times.

 

revenues of S. League teams

"There is a cynical opportunism to this," he said. "They realise that things
are chaotic right now and that in many ways - anything goes."

 

But he added: "Football is about two groups of people. Players and fans. You
upset them at your peril.

 

"If fans decide to boycott the matches, that will be a financial disaster,
and if Fifa threatens to ban participating players from representing their
country in the World Cup - they won't go for it."

 

If you like jeopardy, the stakes don't get much higher than this.--BBC

 

 

 

London Capital and Finance: Treasury expects £120m compensation bill

The government is expecting to pay £120m to bondholders of the failed
investment scheme London Capital and Finance (LCF).

 

LCF collapsed into administration in January 2019, leaving millions of
pounds in losses for investors.

 

The government's compensation is expected to be paid to about 8,800 people
who have not qualified for other payouts.

 

The City regulator was heavily criticised for its role in the saga.

 

Legislation needed

An independent report published in December said the Financial Conduct
Authority failed to "effectively supervise and regulate" LCF.

 

Bank of England governor Andrew Bailey, who was running the FCA during that
period, apologised to those who lost life savings.

 

Some 11,625 people invested a total of £237m with LCF before it collapsed.

 

Now the Economic Secretary to the Treasury, John Glen, has announced a
scheme which would help the investors in LCF who did not qualify for help
from the Financial Services Compensation Scheme.

 

Investors will be given back 80% of the money that they lost when LCF went
into administration, capped at £68,000.

 

The amount they are allowed to take will be reduced if they have been given
interest payouts from LCF or money from the company's administrators.

 

The Treasury said the money would be paid "within six months of securing the
necessary primary legislation, which it will bring forward as soon as
parliamentary time allows".--BBC

 

 

 

Facebook: Our staff can carry on working from home after Covid

Facebook says its employees can continue working from home, even as other
tech giants appear to be going off the idea.

 

The social media company told the BBC it thinks remote work is "the future".

 

People in eligible roles at Facebook can apply for permanent remote working,
subject to approval from managers.

 

Silicon Valley executives were quick to endorse the shift to remote work
last year, with some indicating it could continue even after the pandemic.

 

Last May, Facebook boss Mark Zuckerberg predicted 50% of the company's
employees could be working remotely within the next five to ten years.

 

Twitter's Jack Dorsey made headlines at the same time, when he announced his
employees "can now work from home forever".

 

But as the months have passed, some of the drawbacks have emerged.

 

At a conference in October, Microsoft chief executive Satya Nadella said the
lack of division between private life and work life meant "it sometimes
feels like you are sleeping at work".

 

Last month, Google announced it was bringing forward its timetable of moving
people back into the office.

 

People 'thrived' at home

The coronavirus crisis prompted a rapid shift away from office working to
home working.

 

Now, as firms look beyond the pandemic, many are deciding whether to bring
employees back to offices or allow them to stay at home.

 

Brynn Harrington, who is Facebook's vice president of People Growth, says
some workers have been "really thriving" at home and will be keen to
continue doing so.

 

"For example, parents who are closer to their children and are happy to cut
their commute time and optimise their work day, they're thrilled to work
from home," she said.

 

Is Big Tech going off remote working?

Goldmans backs office life with new Birmingham hub

But she admits it has not been easy for everyone.

 

"Obviously this is working from home during a pandemic, we are not in a
period of healthy remote work," she said.

 

"We have people juggling care giving responsibilities, we have people living
in small apartments with roommates, those people desperately want to get
back into offices, and we're working really hard to do that, as soon as it's
safe to open our offices."

 

Facebook plans to start reopening its Silicon Valley offices at the
beginning of May, after more than a year of working from home during the
pandemic.

 

Its largest offices won't reach 50% capacity until September at the
earliest.

 

Pay rates

The social media giant insists the shift to remote work is not about saving
costs. But it has also hinted that remote workers might receive lower pay,
depending on where they choose to live and work.

 

"We pay based on the local cost of labour in a market," Ms Harrington said.
"So there will be variability in terms of pay for remote workers, based on
where they work."

 

Facebook's approach is at odds with many other firms, which have expressed a
desire to have their workers return to the office.

 

The boss of Goldman Sachs rejected remote working as the "new normal",
labelling it an "aberration".

 

"I do think for a business like ours, which is an innovative, collaborative
apprenticeship culture, this is not ideal for us," David Solomon said in
February.

 

In February, Jes Staley, chief executive of Barclays bank, said that working
from home was "not sustainable".

 

Other big companies have plans to test so-called hybrid work arrangements,
where employees split their time between home and office.--BBC

 

 

 

Asian shares up on China gains but tech worries weigh

Asian shares rose on Tuesday, led by a stronger Chinese opening and shaking
off the initial drag from tech-driven Wall Street losses, while the dollar
stayed at multiweek lows against other major currencies.

 

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS)
gained 0.2%, swinging into positive territory after Chinese blue chips
(.CSI300) rose 0.13%. South Korea (.KS11) gained 0.4%.

 

Elsewhere, Japan's Nikkei (.N225) dropped 1.84%, as the country continues to
grapple with a resurgence in COVID cases. Australia (.AXJO) slipped 0.33%.

 

Hong Kong (.HSI) fell 0.11% although Chinese food delivery giant Meituan's
(3690.HK) shares rose 1.59% after the company said it had raised a huge
$9.98 billion through an equity and convertible bond sale.

 

 

Earlier, major Wall Street indexes drew back from record highs hit list
week, with a big drag from Tesla Inc (TSLA.O).

 

The electric-car maker slid 3.4% after a Tesla vehicle believed to be
operating without anyone in the driver's seat crashed into a tree on
Saturday north of Houston, killing two occupants. read more

 

"This morning in Asia looks like a continuation of what we saw last night,
where tech stocks got hit in the U.S.," said Mick McCarthy, Chief Markets
Strategist, CMC Markets.

 

McCarthy said that the falls in Japan were striking given the yen strength
caused by the falling dollar, which would normally be supportive for
Japanese stocks, adding he thought this would change one way or the other
later in the day.

 

 

The tech-heavy Nasdaq (.IXIC) was the biggest mover, falling 0.98%, while
the Dow Jones Industrial Average (.DJI) declined 0.36%, and the S&P 500
(.SPX) 0.53%.

 

However, e-mini futures for the S&P 500 rose 0.13%, suggesting markets could
bounce back later in the day.

 

In currency markets, the dollar continued its recent weakness, falling
further from six week lows it hit on Monday.

 

"In our view, USD can remain heavy this week as focus shifts from U.S.
economic outperformance to the improving global economic outlook more
broadly," wrote analysts at CBA in a research note.

 

 

In Asian trade, the dollar dropped 0.08% against the yen, while the
Australian dollar gained 0.14% and the Euro gained 0.07% on the dollar
respectively.

 

The yield on benchmark 10-year Treasury notes rose to 1.6029% compared with
its U.S. close of 1.599%.

 

Oil prices continued to rise. U.S. crude ticked up 0.19% to $63.50 a barrel,
and Brent crude rose to $67.2 per barrel.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

United Airlines loss bigger than feared on higher fuel costs, capacity slide

United Airlines (UAL.O) on Monday reported a bigger-than-expected $2.4
billion adjusted net loss for the first quarter, as fuel costs rose and the
airline operated fewer flights amid continued weak demand due to the
COVID-19 pandemic.

 

Average fuel cost climbed nearly 30% to $1.74 per gallon in the quarter from
the previous three months, while passenger traffic fell 52% compared to the
same period in 2020. The World Health Organization did not declare COVID-19
a pandemic until near the end of the first quarter in 2020.

 

United Airlines said it expects fuel costs to rise by another 5% in the
second quarter.

 

The airline, however, forecast a return to profitability later this year and
said it expects to restore some capacity cuts as more people are willing to
travel.

 

Capacity should reach 45% of 2019's level in the second quarter from 2019,
United said.

 

United's adjusted net loss was about $2.40 billion for the first quarter,
compared with analysts' average estimate for a loss of about $2.23 billion,
according to IBES data from Refinitiv.

 

United Airlines CEO Scott Kirby said in a statement the airline now sees "a
clear path to profitability."

 

United shares fell 1.8% in aftermarket trading.

 

Rival Delta Air (DAL.N) too had pointed to higher fuel costs in part for its
quarterly loss and pinned its hope on profitability later in 2021 as rapid
COVID-19 vaccinations are expected to boost air travel.

 

United said earlier on Monday that it was adding three flights to Croatia,
Greece and Iceland, which are among countries reopening for vaccinated
travelers.

 

The Chicago-based carrier expects its adjusted earnings before interest,
taxes, depreciation and amortization to turn positive later this year even
if business and long-haul international demand remains 70% below 2019
levels.

 

United forecast its second-quarter total unit revenue, which compares sales
to flight capacity, to fall 20% compared with the same period in 2019. That
would be less than the 27% drop in the first quarter.

 

The company expects core cash flow to remain positive for the rest of 2021
after it turned positive in March.

 

Total revenue fell 66% to $3.2 billion in the quarter, compared with the
same period in 2019.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

IBM quarterly sales growth highest in over two years on cloud strength

International Business Machines Corp (IBM.N) recorded highest quarterly
sales growth in more two years and beat Wall Street targets on Monday,
boosted by its bets in the high-margin cloud computing business.

 

Shares of the Dow component, which have gained nearly 6% so far this year,
were up more than 3% in extended trading.

 

Finance chief James Kavanaugh said cloud spending by clients in retail,
manufacturing and travel industries in the United States was picking up
after the initial pandemic-driven slump.

 

Sales from its cloud computing services jumped 21% to $6.5 billion in the
quarter. The 109-year-old firm is preparing to split itself into two public
companies, with the namesake firm narrowing its focus on the so-called
hybrid cloud, where it sees a $1 trillion market opportunity.

 

Big Blue recorded a sales decline in global technology services, its largest
unit, but that was largely offset by a rise in revenue in the remaining
three units, including a surprise growth in the business that hosts
mainframe computers.

 

Mainframe saw strong traction from the financial services industry, where
its banking clients shopped for more capacity as trading volumes soared
during the retail trading frenzy, CFO Kavanaugh said.

 

"I am glad to see that strategic projects, which are IBM's bread and butter,
are coming back," said Patrick Moorhead, analysts at Moor Insights &
Strategy, adding that systems and global business services growth was a
surprise.

 

"This is a good start to the year for the company who is all-in on the
cloud."

 

Total revenue rose nearly 1% to $17.73 billion in the quarter, beating
analysts' average estimate of $17.35 billion, according to IBES data from
Refinitiv.

 

Net income fell to $955 million, or $1.06 per share, in the quarter ended
March 31, from $1.18 billion, or $1.31 per share, a year earlier.

 

Excluding items, the company earned $1.77 per share, beating market
expectation of $1.63.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Google, Apple executives to testify in app store hearing on Wednesday

Senior executives with Alphabet’s (GOOGL.O) Google and Apple (AAPL.O) will
testify on Wednesday about antitrust concerns related to their app stores
along with executives of three companies which rely on those online stores,
the leaders of the Senate Judiciary Committee’s antitrust panel said on
Monday.

 

The hearing will include Google Government Affairs Senior Director Wilson
White and Apple's Chief Compliance Officer Kyle Andeer as well as Spotify's
Chief Legal Officer Horacio Gutierrez, Match Group's Chief Legal Officer
Jared Sine and Kirsten Daru, general counsel for Tile.

 

The witness list was announced by Senators Amy Klobuchar, chair of the
antitrust panel, and Mike Lee, its top Republican.

 

Music streaming service Spotify and dating app Match have been critical of
both tech giants' app stores, while Tile, whose app helps people find
objects, has focused on Apple.

 

App makers have long complained that mandatory revenue sharing payments and
strict inclusion rules set by Apple's App Store for iPhones and iPads, along
with Google's Play store for Android devices, amount to anticompetitive
behavior.

 

The four tech giants -- Apple, Amazon, Facebook and Google -- have come
under tough scrutiny for more than a year because of such varied concerns as
privacy breaches, allegations of hate speech and stifling conservative
voices and violations of antitrust law.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

U.S. House of Representatives approves cannabis banking bill

The U.S. House of Representatives on Monday passed legislation that would
allow banks to provide services to cannabis companies in states where it is
legal, a step towards removing what analysts say is a barrier to development
of a national industry.

 

Lawmakers voted 321-101 to approve the bill and send it to the Senate.

 

The bill clarifies that proceeds from legitimate cannabis businesses would
not be considered illegal and directs federal regulators to craft rules for
how they would supervise such banking activity.

 

Banks have generally been unwilling to do business with companies that sell
marijuana or related products, fearing they could run afoul of federal laws.

 

That has left companies in the marijuana industry with few options,
including relying on just a handful of small financial institutions or doing
business in cash.

 

The American Bankers Association has lobbied aggressively for the "SAFE
Banking Act" bill.

 

"Banks find themselves in a difficult situation due to the conflict between
state and federal law, with local communities encouraging them to bank
cannabis businesses and federal law prohibiting it," the group wrote in a
letter to lawmakers on Monday. "Congress must act to resolve this conflict."

 

Thirty-six states have legalized medical cannabis while 17 states now allow
adult use, according to the National Conference of State Legislatures.

 

Senate Majority Leader Chuck Schumer, in an early-April interview with
Politico, said he would try to advance legislation legalizing marijuana use
for adults. Asked about the SAFE Banking Act, he said he would like to see
such a bill move forward as part of a more comprehensive measure - even if
President Joe Biden was not supportive.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Australia's Afterpay considers U.S. listing as 'buy now, pay later' takes
off

Australian buy-now-pay-later company Afterpay (APT.AX) said on Tuesday it is
exploring a U.S. listing after North America became its biggest market,
offering global investors an easier path to owning a stock that has boomed
through the pandemic.

 

Afterpay has tapped Goldman Sachs to advise on the listing, two sources with
direct knowledge of the matter told Reuters. Goldman declined to comment.

 

The Melbourne-based firm was last valued at nearly A$37 billion ($28.7
billion) despite never having posted a profit, thanks to the
coronavirus-driven surge in online shopping and rapid expansion in overseas
markets including the United States.

 

Releasing its third-quarter results on Tuesday, Afterpay said North America
sales had nearly tripled, overtaking Australia and helping to double the
total value of transactions it processed to A$5.2 billion compared with a
year earlier.

 

A U.S. listing would likely further open up the Australian fintech star to
an investor base that lends greater weight toward growth, and also
potentially provide easier access to capital to fund expansion plans.

 

Afterpay co-CEO Nick Molnar, who co-founded the company in 2015, told
Reuters it was a "proud Australian-headquartered organisation" but a U.S.
listing could provide "attractive opportunities".

 

"The prioritisation on exploring a U.S. listing is purely around does it
provide the business more operating leverage from the perspective of being
present in the market that is now the greatest contributing segment ... and
provide us the right investor base," he said.

 

Afterpay said in a statement it planned to remain headquartered in
Australia, but did not specify if a U.S. market debut would be based on a
dual-listing structure or result in it giving up its Australian berth. It
also did not give a timeframe.

 

In North America Afterpay is pitted against Affirm (AFRM.O), Zip Co's
(Z1P.AX) Quadpay, new entrant PayPal (PYPL.O) and Sweden's Klarna, which is
valued at $31 billion and looking at a direct listing in the United States.
read more

 

Affirm's $17 billion valuation was based on 4.5 million shoppers while
Afterpay had 14.6 million, implying a valuation over $47 billion, said
Emanuel Datt, founder of Datt Capital which bought Afterpay shares around
A$7.00 in 2018.

 

"U.S. investors are generally willing to pay a higher multiple for a growth
business like Afterpay. That is related to the deeper pools of capital that
are available ... relative to Australia," Datt said.

 

Shares of Afterpay were trading flat at A$126.17 by midsession on Tuesday,
compared to a slight dip in the broader market (.AXJO). The stock is up more
than 200% since its pre-pandemic high in Feb 2020.

 

Afterpay's growth has slowed in Australia and this year it will likely face
margin pressure as the country's biggest bank (CBA.AX) and PayPal launch
BNPL offerings with a promise of lower fees. read more

 

The company last month launched in parts of mainland Europe and plans to
move into Asia. Its self-branded savings accounts linked to Westpac Banking
Corp (WBC.AX) are expected to go live later this year.

 

($1 = 1.2845 Australian dollars)

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Tanzania: Tigo Tanzania and Zantel Up for Sale

Dar es Salaam — Millicom International Cellular S.A. (Millicom) is selling
its Tanzanian subsidiaries (Tigo and Zantel), the company announced on
Monday, 19 April 2021.

 

The telecom firm, which is listed on Nasdaq (New York City) and Stockholm
(Sweden) stock markets, said in the statement that it has already signed an
agreement for the sale of its entire operations in Tanzania to a consortium
led by Axian Group of Madagascar.

 

The sale is part of Millicom's strategy to exit Africa and focus on Latin
America.

 

"The sale of the Tanzania business is in line with Millicom's strategy to
focus on providing fixed and mobile services in Latin America after
investing in the development of the telecommunications industry in Africa
for more than 25 years," the statement said.

 

With a total of 13 million subscribers as of December 2020, Tigo held a 25
percent subscription share in a market where seven operators have issued
about 51 million subscriber identification module (Sim) cards.

 

The company was behind market leader Vodacom, which had issued 15.6 million
subscriptions (31 percent), and Airtel, which had 13.8 million (27 percent).

 

Zantel had one million subscribers, representing a market share of only two
percent.

 

Tigo was, however, ahead of Airtel in terms of mobile money subscription
whereby as of December, the former had nine million subscribers,
representing 28 percent of the market share, while the latter had 6.5
million, equivalent to 20 percent slice of a total of 32 million
subscribers.

 

Axian, an Antananarivo-based pan-African group, was part of the consortium
that snapped up Millicom's operations in Senegal in 2018.

 

"We knew that asset for a while because Tanzania has huge potential,"
Hassanein Hiridjee, the CEO of Axian, is quoted saying by the Financial
Times. "When we found that Millicom was divesting from Africa we said: 'we
must go there, we must'."

 

With $366 million in revenues last year, Tanzania represents a meagre six
per cent of Millicom's total revenue, Financial Times reported on Monday.

 

Africa, the Miami-based company told Financial Times, had historically
generated lower returns than Latin America, where it has very profitable
operations, especially in Guatemala, El Salvador, and Panama.

 

Millicom, via its Tigo brand, accounts for more than 52 million mobile
subscribers across 11 countries in Latin America and Africa.

 

Yet, over the past four years, it has sold its operations in the Democratic
Republic of Congo, Rwanda, Senegal, and Chad. On Friday, it agreed to
transfer its stake in AirtelTigo to the government of Ghana -- where it had
a joint venture with India's Airtel -- taking on a $25 million charge.

 

Now, the selling of Tigo in Tanzania means the emerging market telecoms will
be fully exiting Africa this year.

 

"Millicom is a Latin American-focused telecom company with 95 per cent of
our revenues coming from that region. With the announcement today of the
divestiture of our remaining African businesses we draw a close on a chapter
in our history and open another solely focused on the Latin American
region," Mauricio Ramos, the CEO of Millicom, told the Financial Times.-
Citizen.

 

 

 

South Africa: Durban Port to Reclaim Its Place As the Best-Performing Port
in Africa

President Cyril Ramaphosa says through both operational improvements and
structural reforms, the Durban Port will reclaim its place as the
best-performing port in Africa.

 

"As part of our Reconstruction and Recovery Plan, we will continue to work
tirelessly to expand infrastructure investment and transform our network
industries," President Ramaphosa said after his recent visit at the Durban
Port.

 

In his weekly Newsletter, President Ramaphosa said if the port does not
function efficiently, the entire economy suffers, from importers and
exporters to consumers.

"On the other hand, if the port works well it can drive economic growth and
position our country as a gateway to the region and the continent," he said.

 

When he visited Durban in October 2019, many local businesses and port users
raised concerns about the performance of the Durban Port.

 

"Shipping companies in particular expressed concern about truck congestion
and waiting times, ship berthing delays and anchorage times, poor
maintenance of equipment and generally low productivity in the port," the
President said.

 

There has been great progress over the past year in turning around the
performance of the port despite the impact of COVID-19.

 

"These efforts are already showing results in improved maintenance of
equipment, reduced congestion, quicker turnaround times and increased use of
rail instead of road transport.

 

"Truck turnaround times have greatly improved. Similarly, the reliability of
cargo handling equipment has improved to 80%, and is heading towards at
least 95% to meet international benchmarks. Ship waiting times have reduced
to impressive levels.

"While this is important progress, there is still much work to be done to
position Durban as a world-class port and as a hub port for the Southern
Hemisphere," President Ramaphosa said.

 

During his visit at the Port, the President clarified matters relating to
fears raised by SATU about the privatisation of the Port and stated that
Transnet is not going to be privatised but partnerships are going to be
forged to create more jobs.

 

The aim of the visit was to ensure that commitments made following the
President's meeting with port users and stakeholders in October 2019, have
been implemented.

 

A multi-party work team has been established, together with port users, to
address key issues related to port performance.

 

While this progress is a reflection of the hard work that is being done to
reposition the port, there is still much work remaining to ensure the port
system serves the needs of the economy and promotes growth.

 

The new management of Transnet and its operating divisions are focused on
improving operational performance, increasing investment in port and rail
infrastructure and ensuring adequate maintenance of equipment.

 

The Department of Public Enterprises and the Department of Transport, with
support from Operation Vulindlela, are working to implement structural
reforms that will modernise and increase investment in the transport
sector.-SAnews.gov.za.

 

 

 

Namibia: Stalled Rural Electrification Project Gets Green Light

Ncumushi — The Ncumushi village electrification project that was stalled due
to a dispute between a contractor and crop field owner has been given the
green light to go ahead.

 

The field owner and the community gave the go-ahead on Wednesday after the
intervention of the Shambyu Traditional Authority and Kavango East governor
Bonifatius Wakudumo.

 

Vitumbo Tjimbamba refused that the contractor erects four electrical poles
in his field, while some villagers thought that the power line should run
parallel to the nearby gravel road, which is about 15km long.

 

However, going through some crop fields will cut the distance of the
powerline by about five kilometres.

 

The electrical line will be developed on a 10km stretch from Baramasoni to
Ncumushi village and will electrify a school and a borehole in the Mashare
constituency.

 

During the community meeting, some villagers claimed they were not informed
of the project, but the contracting company, Together Electrical Services
said it informed the headwoman's right-hand man Mathews Munuma, as headwoman
Veronica Nekendu was receiving medical attention out of town at the time.

 

The governor urged villagers not to stand in the way of development, as it
is a government project intended to develop their area.

 

"Development comes to people and if the project has negatively affected you
to an extent of you giving up your piece of land, government has a way of
compensating you so you can move appropriately. In this case, four poles
won't hinder you from cultivating your crop field," Wakudumo noted.

 

The governor expressed happiness that the parties managed to iron out the
problem but informed them that more than two months have now been lost on
the project.

 

"The contractor was supposed to start on 1 February and then the conflict
started. He stopped and went to do other projects and now he can only come
back to the site after two weeks," noted Wakudumo.-New Era.

 

 

 

Gambia: Farato, Jambur Rejoice As Road Construction Set to Begin Earnest

Inhabitants of Farato and Jambur are rejoicing as the government over the
weekend laid the foundation stone for the construction of 5.6 kilometer
Farato-Jambur Highway.

 

Hage Group is the company to construct the road with officials saying it is
expected to be completed in 12 months.

 

Residents of the area who graced the foundation laying described the event
as a major breakthrough for the government, given the fact that the road was
a no-go-area especially during the raining season.

 

Mod Ceesay, permanent secretary at Ministry of Works and Infrastructure,
underscored the importance of the road to the communities while reaffirming
that the government of The Gambia under the leadership of President Adama
Barrow is ensuring that all major roads in the country are constructed.

Infrastructural development, he said, is among the top priorities of
President Barrow and it is center stage of the country's National
Development Plan (NDP).

 

The road, P.S Ceesay added, would be reconstructed and upgraded with a view
to meeting the required standards. He said: "Looking at the context of the
road within the Greater Banjul Area (GBA), given the fact that it's linking
from the primary network from the Brikama-Serrekunda Highway and linking it
from the Sukuta-Jambanjelly Highway, it's a very good diversion in terms of
traffic management. Therefore, the road is very significant in terms of
network linkage."

 

"The road is also important because it's connecting the community of Kombo
South and the villages around those areas bearing in mind that Kombo South,
in particular places like Farato, Jambur until recently when they want to go
for shopping at the Serrekunda market or Banjul, it takes them a long time
particularly during the raining season."

"A travel distance that should not be more than 45 minutes takes them 4 to 5
hours as if you are going to Basse. This is because they don't have good
roads in order to access the main highway."

 

P.S Ceesay added: "There's an important pillar in the NDP which focuses on
infrastructural development. It's obviously clear that good infrastructural
development helps build the foundation for economic development. In the
absence of a good transportation network it would be difficult for us to
achieve nation building. And that's why the government of the day gives much
attention to addressing the plight of Gambians in the area of road network."

 

Without a good road network, he said, we can't have access to our
agricultural activities and our goods and services. "The political will of
the government is already there and I am quite optimistic that more roads in
the country will be constructed in the coming years."

"We are putting together three different sections in one lode. Hopefully, we
will complete this road before we move to other projects. There's plan to
construct Brufut-Gamtel to Tujereng and the Garba Jahumpha road in Bakau New
Town."

 

"We are also appealing to the communities of the area where we are
intervening to provide the much needed support to the contractors on the
ground. They need to be patient because during the construction they would
be facing some difficulties; ranging from traffic congestion among others."

 

"The road has been a nightmare for the communities for quite a while now.
This is the kind of government that Gambians are yearning for. A government
that addresses the needs of its people," Governor Lamin Sanneh said, while
urging the community of the area and the country at large to redouble their
unflinching support to President Barrow.

 

The chairman of Brikama Area Council (BAC), Sheriffo Sonko dwelled on the
importance of the project, saying after the completion of the road, it will
boost the economic activities of the area.

 

Notorious "burglar" arrested over D6.5M

 

Gambia secures more funds for covid-19 vaccines-The Point.

 


 


 


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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