Major International Business Headlines Brief::: 24 April 2021

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Major International Business Headlines Brief::: 24 April 2021

 


 

 


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ü  Brexit: UK and Australia agree 'vast majority' of trade deal

ü  Covid costs push government borrowing to highest since WW2

ü  Clothes sales boosted UK retailers ahead of reopening

ü  Wall St Week Ahead After blazing U.S. stock rally, some warn of tougher
market ahead

ü  U.S. manufacturing, new homes sales underscore booming economy

ü  Bitcoin tumbles below $50,000, other cryptos sink over Biden tax plans

ü  Investors doubt U.S. capital gains tax plan alone can derail market rally

ü  U.S. lawmaker introduces bill to restore FTC ability to get money back
from scammers

ü  GM commits to doubling ad spending with Black-owned media

ü  Apple to help workers get COVID-19 shots at its offices

ü  EXCLUSIVE New York state pension fund backs activist nominees in Exxon
proxy fight

ü  EXCLUSIVE Brazil's Nubank readies U.S. stock market listing -sources

ü  Africa: Most Covid-19 Bail-out Money Goes to Big Business - Survey

ü  Nigeria: Shell's Pipeline Spills 110 Barrels of Crude Oil Into Bayelsa
Community

ü  Uganda: Ura Now Slaps Ushs300m Tax On Bobi Wine's Bullet-Proof Car

ü  Namibia: Klazen Resigns From Fishing Interest

 

 

 

 

 

 

 

 


 <https://www.facebook.com/Hyundaizimbabwe/> 

 


 

Brexit: UK and Australia agree 'vast majority' of trade deal

The UK and Australia say they have agreed "the vast majority" of a free
trade deal.

 

After talks on Friday in London the two said they aim to seal a deal by
June.

 

"Both countries are confident the remaining issues will be resolved, and
will now enter a sprint to agree the outstanding details with the aim of
reaching agreement in principle," a joint statement said.

 

It is estimated a deal could add £500m ($694m) to UK GDP over the long-term.

 

The final day of talks between UK International Trade Secretary Liz Truss
and Australian Trade Minister Dan Tehan ended in London without a deal but
both sides will spend the next few weeks ironing out the outstanding issues
standing in the way of an agreement.

 

Ms Truss said the trade deal between the two countries "will help us emerge
stronger from the pandemic, strengthening ties between two democracies who
share a fierce belief in freedom, enterprise and fair play".

 

If concluded, the UK-Australia free trade agreement will be one of the first
post-Brexit trade deals negotiated by the UK that is not a "rollover deal",
a replica of a trading arrangement earlier negotiated on the UK's behalf by
the European Union.

 

The UK inked a trade deal with Japan in October 2020.

 

What is a free trade deal?

A free trade deal aims to encourage trade - usually in goods but
occasionally in services - by making it cheaper. This is often achieved by
reducing or eliminating tariffs - taxes or charges by governments for
trading goods across borders.

 

Trade agreements also aim to remove quotas - which are limits on the amount
of goods which can be traded.

 

Trade can also be made simpler if countries have the same rules, such as the
colour of wires in plugs. The closer the rules are, the less likely that
goods need to be checked.-BBC

 

 

 

Covid costs push government borrowing to highest since WW2

The cost of measures to support the economy during the coronavirus pandemic
has pushed government borrowing to the highest level since the end of World
War Two.

 

Government borrowing - the difference between spending and tax income - hit
£303.1bn in the year to March, the Office for National Statistics said.

 

Compared to the previous year, borrowing is nearly £250bn higher.

 

Measures such as furlough payments have hit government finances hard.

 

Borrowing hit £28bn in March alone - a record high for that month.

 

Annual UK public borrowing

Despite the record figure, Paul Johnson, director of the Institute for
Fiscal Studies, told the BBC's Today programme the annual borrowing figure
was "slightly better than expected a month ago".

 

Where does the government borrow billions from?

But, he added: "The big story in a sense is they [the borrowing figures] are
£250bn more than a year ago.

 

"And that, of course, is because of to some extent the recession of the last
year but mostly because of the huge amount of additional government spending
to support the economy over the last year."

 

Government borrowing of £303bn is at the same time, an extraordinary record,
but also something a relief.

 

For starters it is not £400bn, as anticipated only a few months ago, though
this number will go up when some Covid support loans fail to be repaid.

 

But its cause has been primarily an active government decision to spend more
to support incomes during the pandemic. Of the £250bn difference in
borrowing between this year and last, over £200bn comes from extra spending,
the rest on a reduction in taxes.

 

In the latest reported month, March, taxes were barely down on last year.
Whereas VAT, fuel duty and business rates were down, self assessment, PAYE,
stamp duty and capital gains taxes were up.

 

That is part of a wider trend of the economy riding the second lockdown much
more effectively than the first. It is epitomised by this morning's separate
retail sales figures showing a boost even ahead of the physical reopening of
shops.

 

The ONS suggested Britons wanted to look good and deck out their gardens
ahead of some restrictions being lifted. Others, less charitable, suggested
lockdown excess meant our clothes no longer fit.

 

The chancellor's slimming regime for the public finances is a gentle one.
Borrowing is predicted to continue at high levels this year, as jobs support
continues until the autumn, and massive tax cuts are meant to persuade
companies to invest in plant and machinery.

 

It is a rebound in growth that will most effectively shrink these record
borrowing numbers. That is why amid the sea of red ink, there is some reason
for relief.

 

Measures to support individuals and businesses during the pandemic
contributed to a £203.2bn, or 27.5%, increase in central government
day-to-day spending in the year to March, the ONS said.

 

Meanwhile, tax and National Insurance receipts fell by £34.9bn, down 5%
compared with the previous 12 months.

 

Borrowing

The ONS also said public borrowing as a percentage of GDP, or national
output rose, to 14.5% - also the highest since the end of the second world
war when it reached 15.2% in 1946.

 

The huge amount of borrowing over the past year has now pushed public sector
net debt up to £2.142 trillion, which is 97.7% of GDP - a rate not seen
since the early 1960s.

 

Michal Stelmach, senior economist at KPMG, said: "Rising debt is largely an
unfortunate consequence of the government's focus on shielding the economy
as much as possible from the impact of Covid-19.

 

"However, doing otherwise could have created long-lasting scars which would
be far worse for fiscal sustainability."

 

Despite the record annual figure, the ONS said it was £24.3bn lower than the
Office for Budget Responsibility (OBR), the fiscal watchdog, had forecast in
March.

 

Ruth Gregory at Capital Economics said: "If we are right in thinking the
economic recovery will be faster and fuller than the OBR anticipates,
borrowing will probably fall more quickly than most expect."

 

'Brighter outlook'

Separate research published on Friday added to hopes of a swift rebound for
the economy, as it suggested that the easing of lockdown measures this month
has triggered a surge in activity among UK businesses.

 

A closely watched survey, produced by IHS Markit/CIPS, indicated that the
looser pandemic restrictions had led to the fastest UK private sector growth
since late 2013.

 

The IHS Markit/CIPS Purchasing Managers' Index (PMI) rose to 60 in April,
according to initial findings, up from 56.4 in March. Any figure above 50
indicates expansion.

 

The service sector grew faster than manufacturing for the first time since
the Covid pandemic began, the survey found, largely because of the reopening
of non-essential shops in England and Wales from mid-April.

 

"Companies are reporting a surge in demand for both goods and services as
the economy opens up from lockdowns and the encouraging vaccine rollout adds
to a brighter outlook," said Chris Williamson, chief business economist at
IHS Markit.

 

"Business activity should continue to grow strongly in May and June as virus
restrictions are eased further, setting the scene for a bumper second
quarter for the economy.

 

"There's also good news for the job market," he added. "Firms have been
encouraged to take on extra staff at a rate not seen for over
three-and-a-half years.

 

"There are some causes for concern, however, as export performance remains
relatively lacklustre, often linked to post-Brexit trading conditions, and
prices continue to rise sharply."--BBC

 

 

Clothes sales boosted UK retailers ahead of reopening

Shoppers on the lookout for new clothes helped to lift retail sales by 5.4%
in March, continuing a partial recovery that started in February.

 

The Office for National Statistics (ONS) said clothing saw the biggest rise
in sales volumes last month, with a 17.5% increase.

 

Despite the jump, clothing sales remain far below pre-pandemic levels.

 

Retailers told the ONS that shoppers may have been snapping up new outfits
before lockdown restrictions eased.

 

>From Monday 29 March, the government allowed outdoor meet-ups to resume in
England, while groups of up to six could drink or eat together in pubs and
restaurants from 12 April.

 

Other non-food stores reported an uplift of 13.4%, with medical goods
suppliers suggesting older consumers were buying mobility equipment and
venturing out more after being vaccinated.

 

Chart showing monthly retail sales figures.

Garden centres and flower shops also reported monthly growth of 7.4% as
those stuck at home more during lockdowns spruced up their outdoor spaces.

 

Petrol stations also saw strong growth of 11.1%, reflecting the easing of
travel restrictions.

 

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said retailers
had benefitted "immediately from the rebound in consumers' confidence in
March".

 

He also pointed out that food stores may have profited from restaurants,
cafes and pubs largely being closed during the reporting period, which ran
until one day before Easter Sunday.

 

Food retailers saw a sales uplift of 2.5% in March, with specialist shops
likebutchers and bakers seeing strong trade as consumers bought goods to
celebrate at home, the ONS said.

 

Online demand

Elsewhere, online spending increased in March, up 0.6% when compared with
February 2021.

 

This was the largest monthly growth in the sector since June 2020, and was
largely driven by customers buying new clothes and shoes to refresh their
wardrobes.

 

Lynda Petherick, head of retail at Accenture UK & Ireland, said: "After a
year of what's felt like endless lockdowns, there is now a palpable sense of
excitement among retailers and shoppers alike."

 

The proportion of online spending overall fell to 34.7%, down from 36.2% in
February, but still remains far higher than pre-lockdown figures.

 

But Ms Petherick added: "We expect demand for online to remain strong post
the reopening of non-essential retail.

 

"Though retailers will be keen to capitalise on the return of shoppers to
the High Street, they must also strike a balance across both their physical
and digital offering, or risk losing out to competitors that learned
strategic lessons from the pandemic," she said.

 

All non-essential shops in England and Wales were able to welcome customers
from 12 April, more than three months after closing their doors.

 

In the first week after restrictions eased, figures from the British Retail
Consortium indicated footfall jumped by almost 200% in England.

 

In Scotland, non-essential retail is due to reopen on 26 April, while in
Northern Ireland, only contactless click-and-collect will be permitted for
non-essential retail businesses from 12 April.=BBC

 

 

 

Wall St Week Ahead After blazing U.S. stock rally, some warn of tougher
market ahead

Some of Wall Street's biggest names are predicting a pause in a rally that
has taken the S&P 500 (.SPX) to fresh records this year, leaving investors
trying to determine whether to lock in some of the breathtaking gains or
stay the course.

 

Among the most recent has been Goldman Sachs, whose analysts on Wednesday
said an expected second-quarter peak in U.S. growth could be tied to weaker
stock returns. Morgan Stanley earlier this week warned stocks would soon
face headwinds. Deutsche Bank this month called for a pullback of as much as
10% in the S&P 500 as growth decelerates, and BofA Global Research backed a
year-end target for the index about 8% below current levels.

 

A comparatively long period without a serious drop in stocks has also made
some investors uneasy. The S&P 500 has declined at least 5% every 177
calendar days, according to Sam Stovall, chief investment strategist at
CFRA. The latest market advance has lasted 211 days without such a drop.

 

"I wouldn't be surprised to see some kind of pullback for no particular
reason other than people start to think maybe this is a little bit ahead of
itself," said Robert Pavlik, senior portfolio manager at Dakota Wealth.

 

The flurry of warnings present a conundrum for some investors. While many
would like to protect profits from the market's 85% run since last year's
pandemic low, pullbacks over the past year have been difficult to time and
followed by sharp rebounds, bolstering the case for holding on and buying
more when stocks dip.

 

The S&P's two significant declines since March 2020 have averaged a drop of
around 8%, lasting 12 days on the way down and taking 45 days to regain lost
ground, according to Stovall. In both cases, the market went on to new highs
weeks later, a pattern some have attributed to unprecedented monetary and
fiscal stimulus buoying investor confidence.

 

"Since the bear market of March of last year, buying dips has been
handsomely rewarded," said Randy Frederick, vice president of trading and
derivatives for Charles Schwab.

 

Since the lows of the Great Financial Crisis, the index has climbed 511%,
despite five drops of 10% or more and the 34% fall last March, offering
investors another argument for buying and holding.

 

Nevertheless, some are bracing for potential turbulence, reflecting concerns
ranging from rising COVID-19 cases, and worries that most of the economic
benefits from massive fiscal stimulus have already been priced in. On
Thursday, sources said the White House will propose nearly doubling capital
gains taxes for the wealthy. read more

 

Stocks were on track for a decline this week but the S&P 500 is still up 10%
in 2021. read more

 

In options markets, the one-month moving average of open puts to open calls,
a measure of sentiment, is the most bearish in about a year, indicating
demand for protection against a decline in stocks.

 

Options data also show a drop in demand for upside positioning. The S&P's
two-month call skew, an options-based measure of investors' demand for
upside, has fallen sharply since early April.

 

"Investors are potentially seeing a lack of catalysts for another leg
higher," Susquehanna International Group's Chris Murphy said in a recent
note.

 

Next week, investors will be keeping a close eye on the Federal Reserve's
monetary policy meeting, as well as a speech by U.S. President Joe Biden to
Congress and earnings from companies such as Apple Inc (AAPL.O) and
Google-parent Alphabet Inc (GOOGL.O).

 

One worry is the comparatively rich valuation of stocks, with the S&P 500
trading at 22.3 times forward earnings estimates, compared to a historic
average of 15.4 times, according to Refinitiv Datastream.

 

"The market is expensive, so we have been looking for stocks that still seem
to have upside," said Peter Tuz, president of Chase Investment Counsel in
Charlottesville, Virginia.

 

His firm sold some holdings in tech-related stocks such as Apple and Amazon
Inc (AMZN.O) in recent weeks, and bought shares of Prudential Financial
(PRU.N), energy company Pioneer Natural Resources (PXD.N) and homebuilder
Green Brick Partners (GRBK.O).

 

Still, the market has outperformed analysts' projections before. A Reuters
poll of strategists from May 2020 forecast the S&P 500 ending the year with
a marginal decline from that point. Instead, the index went on to rally
about 25%. A February 2019 poll projected a 3.8% S&P 500 rise for the rest
of that year, when it ended up rising some 15% more.

 

Even with the market's run, "you actually can find companies that are not
overly expensive right now," said Scott Schermerhorn, chief investment
officer at Granite Investment Advisors.

 

Sitting in cash, "you are going to make nothing," he said.-The Thomson
Reuters Trust Principles.

 

 

 

U.S. manufacturing, new homes sales underscore booming economy

U.S. factory activity powered ahead in early April, though manufacturers
increasingly struggled to source raw materials and other inputs as a
reopening economy leads to a boom in domestic demand, which could slow
momentum in the months ahead.

 

The flow of strong economic data continued with another report on Friday
showing new home sales racing to a more than 14-1/2-year high in March. The
economy is being boosted by the White House's massive $1.9 trillion COVID-19
pandemic rescue package and increased vaccinations against the virus.

 

Retail sales jumped to a record high in March and hiring accelerated,
cementing expectations for robust growth in the first quarter and setting up
the economy for what could be its best performance in nearly four decades.

 

Data firm IHS Markit said its flash U.S. manufacturing PMI increased to 60.6
in the first half of this month. That was the highest reading since the
series started in May 2007 and followed 59.1 in March.

 

Economists polled by Reuters had forecast the index rising to 60.5 in early
April. A reading above 50 indicates growth in manufacturing, which accounts
for 11.9% of the U.S. economy.

 

"The U.S. economy is enjoying a strong start to the second quarter, firing
on all cylinders as loosening virus restrictions, an impressive vaccine
roll-out, a brighter outlook and stimulus measures all helped boost demand,"
said Chris Williamson, chief business economist at IHS Markit.

 

More than half of American adults have had at least one vaccine dose,
according to the U.S. Centers for Disease Control and Prevention (CDC). A
third of U.S. adults are fully vaccinated. That, together with the fiscal
stimulus, has allowed for broader economic re-engagement.

 

But the strong demand is pushing against supply constraints. The pandemic
has disrupted labor at factories and their suppliers, causing shortages that
are boosting prices of materials and other inputs.

 

The IHS Markit survey’s measure of prices paid by manufacturers jumped to
the highest level since July 2008. It attributed the higher input prices to
“severe supplier shortages and marked rises in transportation fees.”

 

The continued rise in input costs is one of many factors expected to drive
inflation above the Federal Reserve's 2% inflation target this year. Fed
Chair Jerome Powell has expressed confidence that the supply chains will
adapt and become more efficient, and prevent prices from remaining higher
for a sustained period.

 

According to IHS Market supply shortages were causing backlogs of
uncompleted work "of a magnitude not surpassed for over seven years." The
raw material squeeze is most evident in the automobile industry, where a
global semiconductor shortage has forced production cuts at motor vehicle
assembly plants.

 

Supply challenges have also spilled over to the housing market, where
builders are struggling with record lumber prices, threatening to worsen an
already acute shortage of previously owned homes available for sale.

 

A report from the Commerce Department on Friday showed new single-family
home sales surged 20.7% to a seasonally adjusted annual rate of 1.021
million units last month, the highest since August 2006.

 

The sales pace blew past economists' expectations for 886,000 units. The
market for new homes is benefiting from the dearth of previously owned home.

 

"Demand is causing new homes to be bought virtually as soon as they hit the
market," said from Robert Frick, corporate economist at Navy Federal Credit
Union in Vienna, Virginia.

 

The data helped to lift stocks on Wall Street. The dollar fell against a
basket of currencies. U.S. Treasury prices were lower.

 

TIGHT INVENTORY

 

The pandemic is driving demand for bigger and more expensive accommodations
as millions of Americans continued to work from home and attend classes
remotely. Homebuilders, however, are also grappling with shortages of land
and workers.

 

New home sales are drawn from a sample of houses selected from building
permits. Sales soared 66.8% year-on-year in March.

 

Sales surged in the South, Midwest and Northeast, but fell in the West. They
were concentrated in the $200,000-$399,999 price range. Sales below the
$200,000 price bracket, the sought-after segment of the market, accounted
for only 3% of transactions last month.

 

The median new house price rose 0.8% from a year earlier to $330,800 in
March. The National Association of Realtors reported on Thursday that sales
of previously owned homes declined for a second straight month in March,
with prices hitting an all-time high as supply remained near record lows.

 

There were 307,000 new homes on the market last month, unchanged from
February. At March's sales pace it would take 3.6 months to clear the
supply, down from 4.4 months in February.

 

"Inventories remain tight and while that should be a positive for home
building activity, a lack of availability will likely remain a headwind for
sales in the near term," said Rubeela Farooqi, chief U.S. economist at High
Frequency Economics in White Plains, New York.

 

About 74% of homes sold last month were either under construction or yet to
be built.-The Thomson Reuters Trust Principles.

 

 

 

Bitcoin tumbles below $50,000, other cryptos sink over Biden tax plans

Bitcoin and other cryptocurrencies posted sharp losses on Friday, onconcern
that U.S. President Joe Biden’s plan to raise capital gains taxes will curb
investments in digital assets.

 

News reports on Thursday said the Biden administration is planning a raft of
proposed changes to the U.S. tax code, including a plan to nearly double
taxes on capital gains to 39.6% for people earning more than $1 million.

 

Bitcoin, the biggest and most popular cryptocurrency , slumped to $47,555,
falling below the $50,000 mark for the first time since early March. It was
last down 4% at $49,667.

 

Smaller rivals Ether and XRP fell 3.5% and 6.7%, respectively, while
dogecoin, created as a joke for early crypto adopters and which had surged
about 8,000% this year prior to this latest setback, was down 20% at $0.21,
according to price and data tracker CoinGecko.

 

The tax plans jolted markets, prompting investors to book profits in stocks
and other risk assets, which have rallied massively on hopes of a solid
economic recovery.

 

"With a high growth rate in the bitcoin price, crypto holders that have
accrued gains will be subjected to this tax increment," said Nick Spanos,
founder at Bitcoin Center NYC. He sees bitcoin dropping further in the
coming days.

 

Bitcoin is on track for an 11.3% loss on the week, its worst weekly showing
since late February. On the year, however, it was still up 72%.

 

But while social media lit up with posts about the plan hurting
cryptocurrencies, and individual investors complaining about losses, some
traders and analysts said declines are likely to be temporary.

 

"I don't think Biden's taxes plans will have a big impact on bitcoin," said
Ruud Feltkamp, CEO at automated crypto trading bot Cryptohopper. "Bitcoin
has only gone up for a long time, it is only natural to see a consolidation.
Traders are simply cashing in on winnings."

 

Others also remained bullish on bitcoin's long term prospects, but noted it
might take time before prices start increasing again.

 

"Investors will see the price drop across the crypto market as an
opportunity to widen their portfolio by averaging up their investment outlay
and buying new altcoins," said Don Guo, chief executive officer at Broctagon
Fintech Group. He added that for bitcoin, investors will see it as an
opportunity to buy bitcoin at a lower price.

 

Shares of cryptocurrency exchange Coinbase (COIN.O) were up 0.5% at $294.86
in early afternoon U.S. trading. The public floatation of its shares on
April 14 had seen bitcoin prices rise to $65,000, before pulling back 25% in
the following days.

 

"The Coinbase listing – the ultimate poacher-turned-gamekeeper moment -
might have been the high watermark for bitcoin," said Neil Wilson, chief
market analyst at Markets.com.-The Thomson Reuters Trust Principles.

 

 

 

Investors doubt U.S. capital gains tax plan alone can derail market rally

U.S. stocks rebounded on Friday from a day-earlier swoon as investors
digested the implications of a planned capital gains tax hike, with many
pointing to reasons why such a policy alone would be unlikely to threaten
the rally in equities.

 

The S&P 500 (.SPX) was up more than 1% in afternoon trading, recouping
losses from Thursday, when stocks fell after reports that President Joe
Biden would seek to nearly double the capital gains tax to 39.6% for wealthy
individuals.

 

That would be the highest tax rate on investment gains, mostly paid by the
wealthiest Americans, since the 1920s. The rate has not exceeded 33.8% in
the post-World War Two era.

 

But investors pointed to a broad range of reasons why the markets are likely
to take the proposal in stride, including the limited effect of such
proposals on equities in the past and expectations that any hike would be
much lower than anticipated.

 

Analysts at UBS Global Wealth Management found "no relationship"
historically between capital gains tax rate changes and stock market
performance.

 

"While we can't rule out some additional modest equity market volatility as
investors react to this proposal, we think it will be very short-lived," the
UBS analysts said in a report.

 

In the case of past capital gains tax hikes, the key to the market response
was the state of the broader economy, said Ryan Detrick, chief market
strategist at LPL Financial.

 

Six months hikes in 2013 and 1987 the S&P 500 was significantly higher,
while six months after hikes in 1976 and 1969, the index was lower, Detrick
noted. This time around, "the economy continues to bounce back faster than
anyone thinks" from the coronavirus pandemic, he said.

 

Economists at Goldman Sachs, meanwhile, predicted that a 28% rate "looks
most likely, in our view, as it is roughly halfway between the current rate
and Biden’s likely proposal".

 

Any hike would need to go through Congress, where Biden's Democratic Party
holds narrow majorities and is unlikely to win support from Republicans. It
could require the unanimous backing of Democrats in the Senate where each
party holds 50 seats.

 

In the six months ahead of the 2013 capital gains hike, investors pulled $38
billion out of U.S. equity funds and ETFs, according to an analysis of
Morningstar data by Matthew Miskin, co-chief investment strategist at John
Hancock Investment Management. Over the next six months, such funds saw $58
billion in inflows, according to Miskin, as the S&P 500 rose 18% over that
12-month period.

 

“It shows that investors likely turned over portfolios and potentially
missed out on an accelerating stock market and they probably would have been
better off just staying the course,” Miskin said.

 

This time, Miskin said, stocks "may be due for a pullback after such a
strong run, but this is not in our opinion a top risk to derail this
market."

 

Investors also said Biden had long telegraphed his plans, so many market
participants probably had already braced for them.

 

While the prospect of higher taxes may cause jitters, “the stock market has
probably priced it in,” Detrick said.-The Thomson Reuters Trust Principles.

 

 

 

U.S. lawmaker introduces bill to restore FTC ability to get money back from
scammers

Representative Tony Cardenas, along with other Democrats, has introduced a
bill that would restore the Federal Trade Commission’s ability to force scam
artists and deceptive companies to return ill-gotten gains.

 

The U.S. Supreme Court on Thursday made it more difficult for the FTC to win
back lost funds, ruling 9-0 that the Federal Trade Commission Act allows it
to ask a judge for injunctions to stop bad behavior but not to claw back
money.

 

Cardenas' bill, which was introduced on Tuesday, would amend the FTC Act to
confirm the agency's authority to "seek permanent injunctions and other
equitable relief," according to the bill's text.

 

"The COVID-19 pandemic has given rise to an increase of scams and fraud that
prey on consumers' fears and financial insecurities," Cardenas said in a
statement on Tuesday. "Inaction is not an option and will only embolden
these bad actors."

 

The bill has 13 Democratic co-sponsors, including Representative Frank
Pallone, chair of the Energy and Commerce Committee, and Representative Jan
Schakowsky, chair of its consumer protection subcommittee. The panel will
hold a hearing on the matter next week.

 

Senator Maria Cantwell, chair of the Senate Commerce Committee, also
indicated an interest in a bill to allow the FTC to seek restitution.

 

"We are working to move legislation immediately to make sure this authority
is properly protected," she said in a statement on Thursday.-The Thomson
Reuters Trust Principles.

 

 

 

GM commits to doubling ad spending with Black-owned media

General Motors Co (GM.N) will double its commitment to spending with
Black-owned media to 4% of its ad budget next year with a target of reaching
8% by 2025, the U.S. automaker said on Friday.

 

GM has come under criticism, including in full-page ads in several national
newspapers, from some Black media leaders for not advertising enough in
Black-owned media. GM said it will spend 2% of this year's budget in that
sector.

 

"This action plan will transform our engagement model with diverse media in
a sustainable way," GM Chief Marketing Officer Deborah Wahl said in a
statement.

 

"Over the course of several weeks, we met with many diverse-owned media
organizations. We are grateful for the transparency and spirit of
collaboration, which helped us frame this inclusive approach."

 

GM cut its advertising and promotional spending last year by about $1
billion to $2.7 billion, according to the Detroit company's annual report.

 

Wahl told Reuters earlier in April its spending would return to normal
levels following cuts during the COVID-19 pandemic.

 

GM also said on Friday it was allocating $50 million over 10 years to
support diverse marketing companies.

 

The company will hold a dedicated ad spending meeting on May 14 with
diverse-owned media leaders ahead of its general media spending event later
this month.

 

"I applaud GM for taking the results of their thoughtful and robust
discussions with a significant number of diverse media entities," said
Alfred Liggins, chief executive of Urban One, which operates media
properties targeting African Americans, in the same statement.-The Thomson
Reuters Trust Principles.

 

 

 

Apple to help workers get COVID-19 shots at its offices

Apple Inc (AAPL.O) said on Friday that it is starting a program to help
employees get voluntary COVID-19 vaccinations at the iPhone maker's offices.

 

The company is working with drugstore chain Walgreens Boots Alliance Inc
(WBA.O) as its vendor and will open a website for its workers to sign up for
appointments, an Apple spokeswoman said.

 

Apple is one of the first large Silicon Valley companies to launch a program
to help workers get vaccinated.

 

Deutsche Bank AG (DBKGn.DE) earlier this month became the first big bank in
New York to say it would offer employees COVID-19 vaccinations at its
offices.

 

Last month, Amazon.com Inc (AMZN.O) started onsite vaccinations for
front-line employees, starting in Missouri, Nevada and Kansas.-The Thomson
Reuters Trust Principles.

 

 

 

EXCLUSIVE New York state pension fund backs activist nominees in Exxon proxy
fight

New York state’s pension fund on Friday threw its support behind an activist
fund’s slate of nominees to Exxon Mobil Corp’s (XOM.N) board, heating up a
proxy fight for the company’s future.

 

The biggest U.S. oil producer Exxon and activist hedge fund Engine No. 1 are
battling over board seats following Exxon's historic net annual loss of
$22.4 billion for 2020. The fund has criticized the producer for
"significant underperformance" and a lagging approach to cleaner fuels.

 

The Exxon board "needs an overhaul," to better manage climate risks and
guide the company to a low carbon future, said N.Y. State Comptroller Thomas
DiNapoli.

 

The activist fund nominees include Gregory Goff and Anders Runevad, former
chief executives of oil refiner Andeavor and wind-turbine manufacturer
Vestas Wind Systems, respectively; Kaisa Hietala, former head of renewable
fuels at Finish refiner Neste; and former U.S. Assistant Secretary of Energy
for efficiency and renewable energy, Alexander Karsner.

 

"We are excited to have a new slate of candidates to support," DiNapoli
said. "We are supporting Engine No 1’s slate of candidates because they
bring transformative industry experience to the table and hold out hope that
it is not too late to turn the tide at Exxon and improve its performance."

 

Exxon and Engine No. 1 did not respond to requests for comment.

 

Engine No. 1 also has won support from California State Teachers’ Retirement
System (CalSTRS), the second largest U.S. pension fund. Hedge fund D.E. Shaw
plans to vote with the company, according to people familiar with the
matter.

 

New York state pension funds overseen by DiNapoli also will vote in favor of
existing Exxon board members Kenneth Frazier and Ursula Burns and two of
three board members Exxon has added in recent months, activist investor
Jeffrey Ubben and former Comcast executive Michael Angelakis, but will
withhold votes on the remaining directors, it said.

 

It is not in favor of oil executive Tan Sri Wan Zulkiflee Wan Ariffin, a
former CEO of Malaysian state energy firm Petronas, who Exxon also named to
the board this year.

 

The funds hold 8.14 million shares of Exxon, according to Refinitiv. The
fund has previously led shareholder proposals calling on Exxon to detail how
its business could be affected by climate change. It also has supported
proposals to split the CEO and chairman's roles at the oil producer.

 

Other votes this year will include favoring an independent board chair
again, additional climate lobbying disclosures and a report on how Exxon's
finances and business assumptions would be impacted by net zero scenarios.

 

The fight for board seats is costing Exxon at least $35 million more than
its typical proxy solicitation costs, with the largest U.S. oil producer
marshalling executives, TV appearances, social media and websites to rebut
the challenge, according to regulatory filings.

 

Engine No. 1 has a $30 million budget for the fight, according to regulatory
filings.

 

Exxon is also urging shareholders to reject proposals to split its chairman
and CEO roles, and block climate-related reports sought by other groups.

 

To blunt investor criticism, in recent months it has expanded its board,
pledged to increase low-carbon initiatives, improved climate disclosures and
said it would lower the intensity of its oilfield greenhouse gas emissions.

 

The virtual shareholder meeting is May 26.-The Thomson Reuters Trust
Principles.

 

 

 

EXCLUSIVE Brazil's Nubank readies U.S. stock market listing -sources

The logo of Nubank, a Brazilian FinTech startup, is pictured at the bank's
headquarters in Sao Paulo, Brazil June 19, 2018. Picture taken June 19,
2018. REUTERS/Paulo Whitaker

 

Brazilian digital bank Nubank has initiated preparations for a U.S. stock
market listing that could come as early as this year, according to people
familiar with the matter.

 

It would be one of the biggest stock market debuts of a South American
company in recent years. Nubank was valued at around $25 billion in a
January private fundraising round, more than doubling its valuation.

 

Nubank, whose legal name is Nu Pagamentos SA, is working with advisers about
an initial public offering in New York, the sources said, requesting
anonymity as the plans are confidential.

 

"We will probably do an IPO at some point in time, but it is not among our
current priorities. We have the support of an amazing group of investors
that share a long-term vision on our business," Nubank said in an emailed
statement. It declined to comment specifically on the timeline of or
preparations for its IPO.

 

Sao Paulo-based Nubank was founded in 2013 by David Velez, a
Stanford-educated Colombian, as an issuer of a purple credit card with no
annual fee.

 

Since then, it has gained more than 35 million clients, launched new
financial products such as checking accounts and loans, and expanded
throughout Latin America. Over the last seven years, it raised $1.2 billion
in various funding rounds.

 

Nubank ended 2020 with a net loss of 230.2 million reais ($41.9 million),
down from 312.7 million reais from a year earlier.

 

Nubank's investors include venture capital firms Dragoneer Investment Group,
Ribbit Capital, Tencent Holdings (0700.HK) Ltd and Tiger Global Management,
as well as the Founders Fund, which is backed by billionaire Peter Thiel.

 

($1 = 5.4945 reais)-The Thomson Reuters Trust Principles.

 

 

 

Africa: Most Covid-19 Bail-out Money Goes to Big Business - Survey

Cape Town — Most of the money paid out by the governments of Kenya and
Sierra Leone to those struggling with the economic effects of the
coronavirus has gone to big corporations and not the poor, a new study has
found. While South Africa promised more to big business, it has actually
paid out more on welfare grants.

 

The Financial Transparency Coalition (FTC), an international grouping of
civil society organisations which promotes fairer and more transparent
global financial systems, included the three countries in a survey of
government bail-outs [PDF] in nine countries in Africa, Asia and Central
America.

 

The coalition's report said that in eight of the nine countries "a
staggering 63 percent of pandemic-related funds went on average to big
businesses... while only a quarter of the funds went to social protection."

 

In the three African countries, the proportion of bail-out money promised to
big business was even higher. In Kenya, 92 percent of spending for recovery
from coronavirus went to corporates. Sierra Leone announced spending on
corporates totalling 74 percent, but actually paid out 92 percent of
recovery spending to corporates.

South Africa announced bail-outs for corporates amounting to 66 percent of
the total, but paid out only 30 percent to them.

 

In contrast, the sums announced for "social protection" were much lower.
Kenya allocated only seven percent of its recovery package to this category,
while Sierra Leone announced 12 percent but paid out only 1.5 percent.

 

South Africa - which already has a social welfare system covering 30 percent
of its population (mainly children and the elderly) – announced spending on
social protection totalling 32 percent of its recovery package, but has
actually paid 68 percent of the package in grants.

However, the coalition report notes that South Africa has not directed any
spending specifically to its informal economic sector. Kenya has spent less
than one percent on the sector, while Sierra Leone announced support
totalling 11 percent of its assistance, and has paid out six percent.

 

The fourth category of actual spending surveyed - on small and medium
enterprises - ranged from two percent of the total in South Africa to half a
percent in Sierra Leone.

 

South Africa's Covid-19 stimulus package has previously been reported as the
largest in any emerging-market economy - and larger than the developed
economies of South Korea and Canada - and the Financial Transparency
Coalition bears this out.

 

Of the nine countries surveyed, only India has a bigger package - U.S. $115
billion - but this constitutes 4.44 percent of its gross domestic product,
while South Africa's actual spending of $19.8 million constitutes seven
percent of GDP.

 

The non-African countries surveyed, apart from India, were Bangladesh,
Nepal, Honduras, Guatemala and El Salvador.

 

Matti Kohonen, director of the Financial Transparency Coalition, said in a
news release accompanying the report that by the end of this year, 150
million people are expected to fall into extreme poverty due to the
pandemic.

 

The imbalance in relief spending, he added, "threatens to further widen the
gap between rich and poor, and increase countries' mounting debt, all while
undermining countries' healthcare and social protection systems."

 

The coalition recommended steps to redress the imbalance including a minimum
corporate tax rate of at least 25 percent and levying or increasing taxes on
the wealthy, corporations and high-income earners.

 

 

 

Nigeria: Shell's Pipeline Spills 110 Barrels of Crude Oil Into Bayelsa
Community

A probe into the incident had been concluded.

 

The Okordia-Rumekpe 14-inch crude truck line operated by Shell Petroleum
Development Company (SPDC) has discharged some 110 barrels of crude oil into
Ikarama community in Bayelsa.

 

SPDC's Media Relations Manager, Bamidele Odugbesan, confirmed the leakage
and said that the probe into the incident had been concluded.

 

A Joint Investigative Visit's (JIV) report obtained by the News Agency of
Nigeria (NAN) on the incident on Thursday confirmed that the incident
occurred on April 7, while the investigation was concluded on April 12.

 

JIV is a statutory probe into the cause of any recorded spill incident
involving the oil firm, regulators, host communities and state ministries of
environment.

 

The JIV report concluded that the spill was an operational mishap traced to
equipment failure which impacted nearby palm trees and fish ponds.

 

It recommended remediation of the site.

 

The report indicated that an estimated 1.34 hectares of land was polluted by
the leakage, which followed a rupture on the pipeline.

 

According to the report, the company managed to recover 213 barrels of
SPDC's Bonny light crude stream leak from impacting the environment. The
amount that spilled into the area was 109.12 barrels, approximated to 110
barrels.

 

The JIV report, which anticipated that oil recovery would be concluded
before the end of April, also recommended replacement of sections of the
pipeline to restore its integrity.

 

(NAN)

 

Editor's Note: This report has been updated with the accurate oil spill
figures as indicated in the JIV report.- Premium Times.

 

 

Uganda: Ura Now Slaps Ushs300m Tax On Bobi Wine's Bullet-Proof Car

Kampala — The Uganda Revenue Authority (URA), has asked former opposition
presidential candidate Robert Kyagulanyi, aka Bobi Wine, to pay UShs337m in
taxes for his bullet-proof car.

 

The communication to the leader of National Unity Platform (NUP) party
followed the conclusion of the reassessment process of his bullet-proof car,
which had initially attracted less tax having been considered as an ordinary
car.

 

"Following the re-examination of your client's motor vehicle, Toyota Land
Cruiser V8 Reg. No. UBJ 667 F, it was confirmed that the unit was armoured.
The details of ballistic protection were confirmed as 90 mm for the window
upper plate glass and 6 mm for the bottom hull," reads in part URA's letter
to Bobi Wine's lawyers of Wameli & Co. Advocates.

 

The letter further read: "It was also established that the declaration made
vide Customs reference UGCWH C 54 of February 12, 2021, did bare falsehoods
of clearing it as a normal vehicle yet it was armoured contrary to Sections
203 of the East African Community Customs Management Act, 2004."

The April 22, 2021 letter was signed off by Mr Abel Kagumire, the
commissioner for the Customs Department.

 

URA said the new tax is upon establishing that Bobi Wine's car is
bullet-proof and costs $166,700 (more than Shs600m).

 

"Customs has re-evalued the motor vehicle using alternative methods of
valuation and appraised a customs value of $166,700 with tax payable of
UShs337,698,776m. Please advise your client (Bobi) to liaise with the office
of the Assistant Commissioner Enforcement who by copy hereof, is requested
to facilitate payment of due taxes and release of your client's vehicle
accordingly," Mr Kagumire's letter further read.

 

The same vehicle had initially been valued at UShs157m.

 

Early last month, Bobi petitioned the High Court in Kampala, seeking to
block URA from recalling his car to be subjected to fresh tax assessment.
However, Justice Emmanuel Baguma on April 6 dismissed the application.

 

The said car was donated to Bobi Wine by his supporters in the diaspora
shortly after the January 14 polls-Citizen.

 

 

 

Namibia: Klazen Resigns From Fishing Interest

Walvis Bay — New fisheries minister Derek Klazen said he has disposed of his
interest in a fishing company in which he held a 25% stake.

 

Klazen served on the board of directors and as shareholder of KKNU Holdings
as well as

 

trustee of the KKNU Endowment Trust until Wednesday when he was appointed as
the new fisheries minister, replacing Albert Kawana.

 

Kawana was subsequently appointed as home affairs minister. Klazen, who
hails from Walvis Bay and also served as mayor of the town before his
appointment as deputy minister of urban and rural development in 2015, faced
criticism from several Namibians, who voiced their concern that the minister
is compromised due to his close ties with the town, considered Namibia's
fisheries hub, as well as links to some fishing companies.

"My hands are clean and I don't have any interest in the fishing industry,
as I commenced with disposing of my shares," Klazen told New Era yesterday.

 

In a statement sent to the media late yesterday afternoon, he said
allegations of his alleged involvement in Omualu Fishing have been
circulating since 2019.

 

Omualu Fishing gained notoriety when the documentary, 'Anatomy of a Bribe'
by Al Jazeera, implicated Windhoek-based lawyers Sisa Namandje and Sacky
Kadhila-Amoomo.

 

The documentary chronicled how politicians and politically-connected
individuals gamed the system to derive massive kickbacks in the fishing
sector, the so-called Fishrot scandal.

"These stories allege that I was a shareholder and director in Omualu
fishing - and secondly, that I facilitated the sale or acquisition of bulk
land in extension 10 and 11 in Kuisebmond and Narraville to and by Omualu
Fishing," the newly-appointed minister said in the statement.

 

He added that in September 2010, while still a teacher, he applied for
fishing rights - just like any other Namibian and that the application was
done through KKNU Holdings (Pty) Ltd, in which he held 25% shareholding.

 

"KKNU Holdings (Pty) Ltd, in turn, held 70% (later reduced to 60%)
shareholding in the KKNU Endowment Trust. The KKNU Endowment Trust, in turn,
holds 33.33% shareholding in Aluhe Fishing. Aluhe Fishing (Pty) Limited was
awarded fishing rights in December 2011, effective January 2012," he said.

 

He further explained he resigned on 29 February 2020 as a director of Aluhe
Fishing (Pty) Limited and was informed on 21 April this year of his
appointment as the fisheries minister and immediately resigned as a director
and shareholder of KKNU Holdings and trustee of the KKNU Endowment Trust,
with immediate effect.

 

"I also commenced the process of disposing of my shares in KKNU Holdings
already for the sake of transparency. I have at no time served as a director
or shareholder at Omualu Fishing nor do I hold any interest in any fishing
company nor intend to hold any," he said.

 

He added that the allegations of having facilitated the sale or acquisition
of land by Omualu Fishing are also not true.

 

"The council at the Municipality of Walvis Bay comprised 10 councillors,
who, during council sittings passed resolutions on land and other matters.
As such, no single councillor can facilitate approval for land to an
applicant or a group of applicants," he said.-New Era.

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


BAT

AGM

Cresta Lodge, Msasa

30/04/21 10am

 


 

Workers Day

 

01/05/21

 


FCB

AGM 

virtual

06/05/21 : 3pm

 


NMB

AGM

virtual

1205/21 :  3:30pm

 


 

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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