Major International Business Headlines Brief::: 04 August 2021

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Major International Business Headlines Brief::: 04 August 2021

 


 

 


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

 


 

 


ü  New York restaurant customers to need Covid jabs

ü  Li Auto: China Tesla rival plans Hong Kong secondary listing

ü  Sweaty Betty sold in a £300m deal to a US firm

ü  Blizzard Entertainment president steps down

ü  Timber shortage due to 'unprecedented' post-lockdown demand

ü  Toyota posts record profit but cautious on outlook as chip crunch weighs

ü  Big strategic decisions await Samsung's Lee as momentum builds for his
parole

ü  Asian shares near 1-wk highs but Delta woes mount

ü  Honda swings to Q1 operating profit, trounces estimates

ü  Thales to sell signalling business to Hitachi in $2 bln deal

ü  Hugo Boss back at pre-pandemic sales in UK, China

ü  Rolls-Royce agrees sale of Norway's Bergen for $131 mln

ü  Rothschild-backed RIT co-leads funding for crypto platform Aspen Digital

ü  Spain's La Liga agrees to sell 10% stake to CVC for $3.2 bln

ü  Nigeria Gets U.S.$3.35 Billion in IMF's Historic U.S.$650 Billion SDR
Allocation

ü  Nigeria: Address the Rising Cost of Gas

ü  Mozambique: Pemba Bay Not Contaminated By Fuel Spill

ü  Malawi Parliament Reveals Govt Loans Are Not Trickling Down to Ordinary
Malawians

 


 <mailto:info at bulls.co.zw> 

 


 

New York restaurant customers to need Covid jabs

New York City is to require customers and staff of restaurants, gyms and
other indoor businesses to have had Covid-19 vaccinations.

 

The policy is to encourage more residents to get vaccinated as the Delta
variant spreads in the city and across the US.

 

Mayor Bill de Blasio said the policy would "turn the tide" on Covid.

 

Nearly 60% of New Yorkers have received at least one jab.

 

But some areas, which are largely poor communities, and communities of
colour, have lower vaccination rates.

 

Anyone who wants to eat inside a restaurant or attend an indoor performance
in New York City will now need to show proof they have been vaccinated
against Covid-19.

 

The policy, which is similar to measures taken in France to try to help slow
down the spread of coronavirus, will be enforced from 13 September.

 

Netflix US cast and crew must be vaccinated to work

As part of the initiative, the city is creating the "Key to NYC Pass" to
provide proof of vaccination to workers and patrons at gyms, restaurants and
entertainment venues, the mayor said.

 

The rules will go into effect this month but will not be fully enforced
until September, when schools are slated to reopen and businesses are
expected to bring employees back into the office.

 

Other big US cities have reinstated mask mandates indoors but Mr de Blasio
has been reluctant to do so.

 

The highly contagious Delta variant has been spreading across the US,
leading to an increase in infections and hospitalisations.

 

Last week Netflix made it mandatory for key cast and crew on US TV and film
productions to have had jabs.

 

Other firms such as Google have said workers must get vaccinated before
returning to the office.

 

JP Morgan said in June that fully-jabbed employees being allowed to discard
face masks at work.

 

Goldman Sachs bankers also have to disclose how many jabs they have had
before returning to the office.

 

In June, Harry Potter publisher Bloomsbury said UK staff must have
vaccinations ahead of their return to the workplace.-BBC

 

 

 

Li Auto: China Tesla rival plans Hong Kong secondary listing

Chinese electric car maker Li Auto has said it plans to raise as much as
$1.9bn (£1.4bn) in a secondary listing of its shares in Hong Kong.

 

Shares in the Tesla rival are already traded on the Nasdaq stock market in
New York.

 

Li Auto is the latest Chinese company to raise money closer to its home
country in recent months.

 

The move comes as Chinese firms listed in the US face increasing scrutiny by
Beijing and Washington.

 

The six-year old Chinese start-up said it would issue 100 million shares in
the Hong Kong initial public offering (IPO) at a maximum price of HK$150
(£13.85; $19.30) per share.

 

The firm, which is also known as Li Xiang, said it will offer 10 million
shares to Hong Kong investors, with the balance made available to people
around the world.

 

Final pricing of the shares is due to be announced before the end of this
week.

 

The Beijing-based company raised almost $1.1bn through its Nasdaq listing a
year ago.

 

On Sunday, Li Auto said it delivered 8,589 of its Li One vehicles in July, a
monthly record for the firm.

 

The Li One is the company's only model currently on the market. It is a
plug-in hybrid which has a fuel tank to charge the battery and extend its
range although the petrol engine does not directly drive the car's wheels.

 

The strong sales numbers come even as a recovery in vehicle sales is
threatened by the global chip shortage that has forced many car makers
around the world to suspend production.

 

Secondary listings in Hong Kong are becoming increasingly popular amongst
Chinese companies as they try to protect themselves from the fallout of the
friction between Beijing and Washington.

 

On Friday, Wall Street regulator the Securities and Exchange Commission said
it will now require extra information from Chinese companies aiming to sell
shares in the US.

 

The announcement came as Beijing intensified oversight of Chinese companies
with share listings in the US, as well as tightening its grip on technology
and education firms at home.

 

In recent weeks, shares in ride-hailing app Didi have slumped after China
announced a probe into the company and barred it from signing up new
customers just days after its New York Stock Exchange debut.

 

Several Chinese technology giants including Alibaba, NetEase and JD.com have
opted to take out secondary listings in recent years.

 

Last month, one of Li Auto's competitors Xpeng raised about $1.8bn with a
secondary listing of its shares in Hong Kong.-BBC

 

 

 

Sweaty Betty sold in a £300m deal to a US firm

Upmarket sportswear brand Sweaty Betty has been bought by US-based Wolverine
Worldwide for almost £300m.

 

Founded in London's Notting Hill in 1998, the company expanded rapidly on
the back of the popularity of so-called athleisure fashion.

 

Known for its figure-hugging leggings, Sweaty Betty clothing has been a
favourite of celebrities, including Jennifer Anniston and Halle Berry.

 

Chief executive Julia Straus will stay at the firm after the £294.4m deal.

 

Wolverine Worldwide is best known for selling footwear, but hopes to
capitalise on the growth in demand for sportswear that surged during the
pandemic.

 

Sweaty Betty founders, husband and wife Tamara and Simon Hill-Norton founded
the business as a competitor to the sportswear lifestyle brand LuluLemon,
which was founded in 1998 in Canada but is now an international brand.

 

Sweaty Betty has expanded to operate a chain of 65 shops across the UK. It
also has stores in Hong Kong and is sold in 99 Nordstrom outlets in the US.

 

Brendan Hoffman, president of Wolverine Worldwide, said in a statement:
"Sweaty Betty's expertise and focus on apparel, female consumers, and
best-in-class digital execution has proven to be a winning combination."

 

"We are excited to support the brand's continued growth while learning from
its digital-first mindset and leveraging that strength across our
portfolio," he continued.

 

'Masculine and shapeless'

Tamara and Simon Hill-Norton said in a statement: "We've seen phenomenal
growth at Sweaty Betty in the last few years, and we're now delighted to
have found the right partner in Wolverine Worldwide to accelerate the next
phase of the journey."

 

"We founded Sweaty Betty in 1998 with the purpose to empower women through
fitness, and today we are delighted to have found the right partner in
Wolverine Worldwide, a company that is perfectly positioned to support the
acceleration of our mission."

 

Ms Hill-Norton has said that when she started the business it was "all dark
and boring and the sports industry just didn't talk to women".

 

She said that in 1998, activewear was "masculine and shapeless" so she
thought it was time to create clothes that "made active women feel beautiful
and powerful."

 

She added: "I teamed up with my husband Simon and took the plunge."-BBC

 

 

 

Blizzard Entertainment president steps down

Blizzard Entertainment president J Allen Brack has "stepped down", the World
of Warcraft and Call of Duty game-maker says.

 

Parent company Activision Blizzard said Mr Brack was "leaving the company to
pursue new opportunities".

 

California is suing the company, alleging a workplace culture of sexism and
harassment.

 

Activision Blizzard denies this allegation and has called the legal action
"disgraceful and unacceptable".

 

Many Activision Blizzard staff walked out in protest against the company's
culture and response to the allegations.

 

'Bro culture'

In a statement, Blizzard Entertainment said Mr Brack would be replaced by
Jen Oneal and Mike Ybarra, who would co-lead the company.

 

While the statement made no reference to the allegations against Blizzard,
it said the new leaders would, "ensure Blizzard is the safest, most
welcoming workplace possible for women, and people of any gender, ethnicity,
sexual orientation, or background".

 

In an accompanying statement Mr Brack thanked the Blizzard community "for
your passion and determination for safety and equality for all".

 

The California Department of Fair Employment and Housing, which brought the
case against Activision Blizzard, in court filings criticised Mr Brack for
not doing enough in response to complaints.

 

In internal emails to employees obtained by Bloomberg, Mr Brack said he
disdained "bro culture" and had spent his career fighting against it and
called the behaviour of employees detailed in the allegations "completely
unacceptable".-BBC

 

 

 

Timber shortage due to 'unprecedented' post-lockdown demand

The price of timber has risen sharply with builders struggling to get
supplies, as post-lockdown construction and DIY projects create huge demand.

 

The Timber Trade Federation (TTF) said suppliers were "working around the
clock" but are "struggling to keep up".

 

Climate change is also increasing the pressure on supply with more wildfires
and pests that kill trees.

 

The UK imports around 80% of its timber and many are calling for the UK's
forestry industry to be nurtured.

 

The government said it was "committed to trebling tree planting rates by the
end of this Parliament" and creating many more woodlands to boost the supply
and demand for UK-grown timber.

 

Sweden, which supplies almost half of the structural wood used in the UK,
has recorded its lowest stock levels for 20 years.

 

David Hopkins, chief executive of the TTF, said: "The pandemic has been the
biggest factor causing the problems between supply and demand
 but there are
other factors at play. We've got these huge forest fires raging across North
America that will take lots of timber out of production.

 

"The fires, and now the bugs, are taking out a significant volume from the
market."

 

Graham Taylor, managing director of Pryor and Rickett Silviculture, manages
around 50,000 acres of forestry across the UK. He said there was "no doubt"
the world's natural forests were suffering with climate change, and that
yields were dropping.

 

"Canada is reducing its annual cut because its own natural forests are under
threat from fire, pest and disease. Because it is such a big producer, when
it pulls back, the rest of the world catches a cold."

 

Demand going up

One of those affected is Wilf Meynell, an architect and project manager at
Studio Bark, which has created a sustainable, modular, all-timber system
used in many self-build projects called U-Build.

 

He said: "Everyone's taking a hit. Our entire business is focused around
timber. The price of birch ply has doubled, and the cost of our standard
work has risen by 25%."

 

Mr Meynell's "giant Lego with bolts" is made from sustainably managed
Finnish spruce - so for every tree cut down, six more are planted. In
contrast, concrete is carbon-intensive and hugely damaging to the
environment.

 

As cities grow, architects and designers are recognising the need to
decarbonise the built environment. The World Bank has predicted demand is
going to rise for wood products by 4% a year for the next 30-40 years.

 

In the UK, forest covers only around 13% of the land. According to the
National Farmers Union, in 2019, less than 60% of England's existing
woodlands were in "active management".

 

Mr Hopkins, from the TTF, said this had to change. "Why is it that the UK
has the lowest forest cover in Europe, when we're actually one of the
biggest importers and users of timber in the world?

 

"Now, particularly as we're hosting the climate change talks, we need to be
talking to our own politicians in this country asking what are we going to
do about it."

 

Mr Meynell had been forced to find a local supplier for some of his timber
on a site in Ross-on-Wye. He said it worked well, reducing emissions and
supporting the local economy.

 

"It's about educating people within the construction sector that UK timber
does have great qualities and is affordable and can be sourced easily
 if
we've got the forestry to back it up, we could start solving some of these
problems."

 

Architecture student Mersei Mongaba, who has been volunteering on his site,
said that it was important not to be "greedy" with resources.

 

"When we talk about this subject, we put trees in one whole category, but
there are so many different types. There are some types - like spruce -
where you're OK to cut a certain amount, but with others - such as oak - we
have to be a lot more careful and control how we are cutting them down."

 

The monoculture commercial conifer planting of the 1980s caused severe
habitat decline. However, forest manager Mr Taylor said "the wrong trees
were planted in the wrong place".

 

"There needs to be a blend - a large amount of commercial forest because
this is about wood production, but there also needs to be extensive
semi-natural planting for biodiversity."

 

He said decisions needed to be made now. "It's a long old business
 it's
30-40 years for conifers. At the moment we are in the phase of producing
mature oak, from trees that were planted in the Victorian period."

 

The TTF predict the disruption to supplies will continue for much of the
rest of the year.-BBC

 

 

 

Toyota posts record profit but cautious on outlook as chip crunch weighs

(Reuters) - Toyota Motor Corp (7203.T) posted a record quarterly operating
profit on Wednesday as pandemic-hit sales rebounded, but refrained from
raising its full-year estimate, citing rising COVID-19 cases and a global
chip shortage.

 

The world's biggest automaker by vehicle sales stuck by its forecast made in
May for an operating profit of 2.5 trillion yen ($22.93 billion) for the
current fiscal year, trailing an average forecast for a 2.88 trillion yen
operating profit, according to 24 analysts polled by Refinitiv. read more

 

Toyota shares fell 2% in afternoon trading on Wednesday, extending losses
from the morning session, with some investors disappointed that the company
had not lifted its profit guidance.

 

"In the first quarter, we have seen the results of our improvement
activities, despite the severe business environment," Toyota said in a
statement.

 

"We will continue these activities in the future, but the situation is still
unpredictable due to the expansion of COVID-19 in emerging countries,
semiconductor shortage, and soaring material prices."

 

Operating profit at Japan's biggest automaker rose to 997.49 billion yen
($9.15 billion) for the three months ended June 30, higher than an average
estimate of 752 billion yen based on 10 analysts polled by Refinitiv, and
well above the 13.9 billion earned in the pandemic-hit first quarter a year
earlier.

 

Profit for the latest quarter was also boosted by favourable foreign
exchange movements.

 

The automaker maintained its forecast for 8.7 million vehicle sales in the
current fiscal year, up from 7.65 million last year. Sales volumes in the
first quarter recovered to near 2019 levels and the ratio of electrified
vehicles rose steadily, it said in an investor presentation.

 

CHIP SHORTAGES

 

Toyota has been stockpiling semiconductors, used in everything from engine
maintenance to car safety and entertainment systems, amid a global supply
shortage that has hit production at rivals such as Hyundai Motor Co
(005380.KS) and Ford Motor Co (F.N). read more

 

It has benefitted from a business continuity plan developed in the wake of
the Fukushima earthquake in 2011 that required suppliers to stockpile
anywhere from two to six months' worth of chips depending on the time it
takes from order to delivery, Reuters reported in March. read more

 

BMW (BMWG.DE) and Stellantis (STLA.MI) became on Tuesday the latest major
car makers to warn that the global semiconductor chip shortage that has
bedevilled the industry this year will drag on throughout 2021 and beyond,
hitting production and sales. read more

 

On Tuesday, General Motors Co (GM.N) said it will shut down several North
American plants because of the shortage, including three next week that make
its highly profitable full-size pickup trucks. read more

 

The global semiconductor chip shortage will cost automakers $110 billion in
lost revenues this year consulting firm AlixPartners said in May. read more

 

Toyota too has not gone unscathed.

 

It has faced production difficulties in Thailand, where it suspended vehicle
production last month at three of its manufacturing plants due to a
pandemic-related parts shortage. read more

 

In the United States, it managed to maintain sales volumes in the first
quarter despite reduced inventory through supply chain efforts and allowing
dealerships to trade or transfer vehicles by themselves to deliver them to
customers on time.

 

($1 = 109.0400 yen)

 

The Thomson Reuters Trust Principles.

 

 

 

Big strategic decisions await Samsung's Lee as momentum builds for his
parole

(Reuters) - With bated breath, management at Samsung Electronics (005930.KS)
is waiting to see if the conglomerate's leader, Jay Y. Lee, will be released
on parole this month.

 

Support for his parole, both political and amongst the public, has grown
amid anxiety that key strategic decisions are not being made at the South
Korean tech giant.

 

If he is released, Samsung would be able to move forward with major
investment and M&A projects - decisions company sources say should only be
made by Lee who has been unable to address them while he sits in jail
convicted of bribery and embezzlement.

 

In particular, a decision on the location of a $17 billion U.S. plant to
produce advanced logic chips awaits his return, four Samsung sources told
Reuters on condition of anonymity.

 

"The word is that the U.S. investment will be finalised when Vice Chairman
Jay Y. Lee is back," said one of the people.

 

Kinam Kim, head of chips and components at Samsung and one of the firm's
three co-CEOs, made a rare direct appeal to President Moon Jae-in in June,
arguing Lee's return was crucial.

 

"Semiconductors need large investment decisions and the decisions can only
be made quickly when the head of the conglomerate is present," Moon's office
quoted Kim as saying.

 

Lee served one year of an initial 5-year sentence from August 2017 which was
later suspended. That court decision was overturned and the sentence revised
to 30 months, putting him back in jail in January this year. Having served
some 18 months, he has just become eligible for release.

 

The Justice Ministry last month eased parole eligibility guidelines for
first-time offenders with good behaviour like Lee to 60% of sentence term
served. The average eligible time for all criminals in South Korea was 80%
prior to the easing.

 

Lee's parole is expected to be reviewed on Aug. 9, and within Samsung hopes
are high that he will be freed around Aug. 15 when the country celebrates
Independence Day and pardons have traditionally been issued, three of the
Samsung sources said.

 

The Justice Ministry and Samsung declined to comment.

 

If paroled, Lee would need the Justice Minister to approve his return to
work as the law bars persons from working for companies involved in certain
convictions for five years. He is likely to get that, legal experts say, as
the amount deemed embezzled has been repaid.

 

While there have been some protests against an early release for Lee and
civic groups have voiced opposition, public support for his early release is
at about 70%, according to two polls.

 

A parliamentary committee leader has also voiced his support while other
members of the ruling party have visited Samsung's chip complex noting that
Lee is eligible for parole.

 

Support on social media ranges from those who think he has already paid his
dues while others fret that without Lee at the helm, South Korea's flagship
conglomerate will fall behind competitors at a time when there is a global
chip shortage and rivals like TSMC (2330.TW) and Intel Corp (INTC.O) are
making large investments.

 

CASH PILE AWAITS USE

 

South Korea's biggest conglomerates are still owned and controlled by their
founding families and there is little precedence for handing over the reins
to non-family members even when a senior family member has been jailed.

 

On one hand, Samsung's day-to-day operations have been little affected by
Lee's stints in prison. Operating profit in the latest quarter surged 54%
and while he was jailed in 2017, Samsung reported its second-largest annual
profit of 53.6 trillion won ($46.6 billion).

 

But experts say Samsung's organisational structure makes it difficult for
anyone besides Lee to sign off on strategic decisions that draw on cash
pooled from its three main divisions - mobile, consumer electronics and
chips.

 

"Realistically, risky strategic decisions like M&A, multibillion dollar
deals, are left to the owner at Samsung," said Jaeyong Song, professor at
Seoul National University and author of "The Samsung Way", a book about
Samsung's management style.

 

"CEOs in Korea are more like chief operating officers in a way. They take
care of the short-term profits, while the owner takes on long-term
competitiveness because their tenure is for life."

 

Analysts have also linked Lee's legal troubles to Samsung's huge pile of
cash, which has swollen 57% over four years to stand at just under $100
billion as of end-June, noting it has not made a major acquisition since
2016.

 

Chief Financial Officer Choi Yoon-ho told an earnings briefing in January
the increase was mainly due to Samsung's inability to "execute meaningful
M&A activities".

 

In addition to the decision on the planned U.S. chip factory - which has
come down to Austin, Texas which is widely seen as the favoured location,
another area in Texas, New York or Arizona - Lee's return would likely
trigger potential acquisitions of stakes in companies, analysts said.

 

NXP Semiconductors NV (NXPI.O), a Dutch maker of automotive chips with a
market value of about $58 billion, has often been cited by analysts as a
good fit for Samsung's strategic needs and a likely target. NXP declined to
comment.

 

Samsung SDI (006400.KS) is considering an investment of at least $3.5
billion in the United States to produce batteries for electric vehicles, but
a final decision will rest with a task force for the wider Samsung group and
is unlikely to be made before the chip plant decision, one of the sources
said. read more

 

($1 = 1,151.4100 won)

 

The Thomson Reuters Trust Principles.

 

 

 

Asian shares near 1-wk highs but Delta woes mount

(Reuters) - Asian shares advanced to one-week highs on Wednesday, led
largely by strong U.S. corporate earnings, although the mood remained
cautious as the rapidly spreading Delta variant of the coronavirus clouds
the global economic outlook.

 

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS)
climbed 0.1% to the highest since July 26.

 

Japan's Nikkei (.N225) was in the red as were Chinese shares with the
blue-chip index (.CSI300) off 0.2%.

 

Australian shares (.AXJO) were a touch firmer but sentiment was marred by an
unabating rise in Delta infections in Sydney, the country's biggest city.

 

Stronger-than-expected profits from U.S. companies in recent weeks have
ratcheted up already high Wall Street forecasts on how second-quarter
earnings growth will look versus last year. read more

 

Close to 90% of companies listed on the S&P500 have reported positive
earnings surprises for the second quarter, according to National Australia
Bank economist Tapas Strickland.

 

Analysts, however, cautioned about the rise in Delta infections of the
coronavirus in Asia, with Chinese media reporting 31 provincial regions have
warned residents against unnecessary travel in light of recent outbreaks.

 

China on Wednesday reported 96 new confirmed coronavirus cases for Aug. 3,
of which 71 were locally transmitted. read more

 

"Wuhan has begun city-wide testing in an eerie echo to the original COVID-19
outbreak," Strickland said.

 

"While China's resolve to control outbreaks has been well illustrated,
markets will continue to watch the outbreak given the high transmissibility
of the Delta variant. There are also concerns China's domestic vaccines are
less effective against the Delta variant."

 

Wall Street's main stock indexes were choppy but finished higher with
notable gains from Apple Inc (AAPL.O), Eli Lilly (LLY.N) and Robinhood
Markets Inc (HOOD.O). read more

 

The S&P 500 (.SPX) gained 0.8% to finish at 4,423.15 - another record
closing high - while the Dow (.DJI) rose 0.8% and the Nasdaq (.IXIC) added
0.6%.

 

Investors expect volatility to increase in August as more companies report
earnings and the market hears from Federal Reserve officials in coming
weeks. U.S. non-farm payroll numbers are due on Friday.

 

The U.S. dollar eased against the Japanese yen and Swiss franc as questions
about slowing U.S. economic growth and the Delta variant challenged risk
appetite.

 

The dollar was near a two-month trough against the yen at 108.95. Against
the Swiss Franc, the dollar hovered near its lowest since mid-June at
$0.9038.

 

The New Zealand dollar bolted higher after super-strong jobs data cemented
expectations for a hike in interest rates this month. The kiwi swung up to
$0.7046 NZD=D3, a gain of 1% for the week so far.

 

The risk sensitive Australian dollar was relatively upbeat at $0.7396, but
that was largely due to a positive economic assessment by the country's
central bank on Tuesday.

 

In commodities, Brent futures fell 20 cents to $72.21 a barrel. U.S. crude
settled down 32 cents at $70.24 a barrel.

 

Spot gold was flat at $1,810.4 an ounce.

 

The Thomson Reuters Trust Principles.

 

 

Honda swings to Q1 operating profit, trounces estimates

(Reuters) - Honda Motor Co (7267.T) swung on Wednesday to a first-quarter
operating profit of 243.21 billion yen ($2.23 billion) from a 113.7 billion
loss a year ago as car sales recovered from the impact of the COVID-19
pandemic.

 

Operating profit at Japan's No.2 car maker by sales for the three months
ended June 30 was double the average profit estimate of 119.2 billion yen
based on nine analysts surveyed by Refinitiv.

 

Honda raised its full-year forecast by 18% and now expects an operating
profit of 780 billion yen in the current financial year, having previously
forecast in May a 660 billion yen operating profit. read more

 

The new forecast is higher than an average forecast of a 764 billion yen
operating profit from 19 analysts polled by Refinitiv.

 

($1 = 109.0400 yen)

 

The Thomson Reuters Trust Principles.

 

 

 

Thales to sell signalling business to Hitachi in $2 bln deal

(Reuters) - Thales (TCFP.PA), Europe's largest defence electronics company,
said it was in advanced talks to sell its GTS railway signalling business to
Japan's Hitachi (6501.T) in a deal that values the division at 1.66 billion
euros ($2 billion).

 

The sale - which confirmed a Reuters exclusive - comes as the French company
looks to streamline its sprawling operations and reassure investors of its
core focus on making high-tech equipment for the defence and aerospace
industries. read more

 

Thales shares were up 2.5% in early trading, among the top performers on the
French stock market (.FCHI), (.SBF120).

 

"With this major strategic move, we will be able to focus on the development
of our 3 high-tech long-term growth businesses, each of them able to
sustainably deliver double-digit margins," Thales Chairman and CEO Patrick
Caine said in a statement.

 

Those three businesses are aerospace, defense & security, and digital
identity & security.

 

Hitachi said the acquisition of Thales' GTS arm should help the Hitachi Rail
division reach 1 trillion yen ($9.2 billion)worth of revenue by 2026.

 

The price tag of 1.66 billion euros corresponds to the enterprise value,
including debt, of Thales' unit, dubbed Ground Transportation Systems (GTS).

 

It reflects a multiple of 13.8 times of the unit's 12-month earnings before
interest and taxes (EBIT), Thales said in a statement, adding that it
expected the deal to close by the end of 2022 or the start of 2023.

 

Thales also said it was now targeting an EBIT (earnings before interest and
tax) margin of 9.8-10.3%, compared to a previous EBIT margin target of
9.5-10%.

 

The GTS signalling unit, which also offers train control systems and fare
collection services, is small compared with competitors.

 

The sale comes at a time of consolidation in the industry as independent
players align themselves with bigger industrial groups.

 

In January, French train maker Alstom (ALSO.PA) closed its 5.5-billion-euro
acquisition of Bombardier's rail business, making it the industry's No. 2
worldwide, after China's CRRC (601766.SS).

 

($1=0.8424 euros)

 

($1 = 109.1000 yen)

 

The Thomson Reuters Trust Principles.

 

 

Hugo Boss back at pre-pandemic sales in UK, China

(Reuters) - German fashion house Hugo Boss (BOSSn.DE) said it expected a
rebound in its business to continue in the second half of the year as sales
recovered to pre-pandemic levels in Britain and China in the second quarter.

 

"We are well prepared to further drive our business recovery also in the
second half of the year," said new Chief Executive Daniel Grieder, the
former Tommy Hilfiger boss who is due to present his strategy later on
Wednesday.

 

Hugo Boss shares were up 1.2% at 0738 GMT.

 

The company known for its smart men's suits said its core Boss brand saw
sales down a currency-adjusted 5%, while Hugo, aimed at a younger audience,
reported sales rose 2%.

 

While sales of casual styles continued to accelerate, as the
working-from-home trend boosts more relaxed dressing, Hugo Boss said it had
also seen a recovery in sales of formal wear due to pent-up demand for
business and party fashion.

 

Hugo Boss, which had already reported preliminary second-quarter results
last month, said sales were up 7% compared to 2019 in the United Kingdom,
and up 33% in mainland China.

 

The recovery in China came despite calls for a boycott of Western brands
launched in late March over Western accusations of forced labour in Xinjiang
when at least three Chinese celebrities said in March they were dropping
Hugo Boss. read more

 

Meanwhile, sales in Europe were just 4% below levels recorded in 2019 and
were down 5% in the Americas. Around 20% of the company's global store
network was still closed during the second quarter.

 

The company reiterated that it expects currency-adjusted group sales in
fiscal year 2021 to increase by between 30% and 35%. read more

 

The Thomson Reuters Trust Principles.

 

 

 

Rolls-Royce agrees sale of Norway's Bergen for $131 mln

(Reuters) - Rolls-Royce (RR.L) said it agreed to sell its Norwegian maritime
engine business Bergen to UK-based Langley Holdings, in a deal which will
boost the British aero-engine maker's finances by 110 million euros ($130.6
million).

 

The sale is a small part of Rolls's 2 billion pound disposal plan to help
repair its finances after the pandemic. For investors, progress with the
sale of Rolls's Spanish unit ITP Aero, which could fetch 1.5 billion euros,
is of more interest.

 

Rolls-Royce had previously agreed to sell Bergen for 150 million euros to a
Russian company but the deal was blocked in March by Norway on national
security grounds.

 

After that attempt failed, Bergen will now only return 110 million euros to
Rolls.

 

Rolls said on Wednesday that privately-held industrial group Langley was
buying Bergen for an enterprise value of 63 million euros, and it would
benefit from sale proceeds of 70 million euros plus the 40 million euros of
cash currently held by Bergen.

 

Closing of the deal is subject to the satisfaction of certain closing
conditions, said Rolls, adding that it had notified Norway and effective
completion was scheduled for Dec. 31.

 

Langley, is based in Nottinghamshire, central England, employs 4,600 people
and has units in Germany, France and Italy. It will operate Bergen as a
stand-alone business, said the statement.

 

($1 = 0.8423 euros)

 

The Thomson Reuters Trust Principles.

 

 

 

Rothschild-backed RIT co-leads funding for crypto platform Aspen Digital

(Reuters) - RIT Capital Partners (RCP.L), the investment trust founded by
Jacob Rothschild, is co-leading a funding round for crypto investment
platform Aspen Digital intended to finance the creation of an online
platform that would give wealthy investors a single portal to manage crypto
investments.

 

RIT will lead the $8.8 million fundraising round for Hong Kong-based Aspen
Digital, along with Liberty City Ventures, an early venture investor in the
blockchain industry, Aspen said in a statement on Wednesday.

 

This will fund the launch of the platform and its expansion to London, Yang
He, co-founder and chief executive of Aspen Digital, told Reuters.

 

Other investors include Chatchaval Jiaravanon and Chaval Jiaravanon -
members of Thailand's richest family and owners of Fortune magazine.

 

Aspen will target family offices and asset managers in Europe, Asia and the
Middle East who want to have a single portal from which they can build a
diversified crypto portfolio. It expects to go live later this year.

 

"To have the oldest wealth management family in the world putting trust in
us as a platform solution for the new world of crypto investment is a great
validation," said Yang.

 

Investor enthusiasm for crypto has increased sharply over the past year,
with one study showing seven out of 10 institutional investors expect to
invest in or buy digital assets in the future. read more

 

London-listed RIT has invested in other crypto-related companies recently,
such as U.S. crypto exchange Kraken. Jacob Rothschild remains the largest
RIT shareholder with a 12.39% stake.

 

 

Aspen Digital aims to provide family offices and other wealth managers with
a crypto investment portal which will take care of compliance procedures and
bear the counterparty risk.

 

Aspen will focus on three areas: it will allow investors to buy and hold
cryptocurrency, will invest in yield-generating products such as
stablecoin-backed savings accounts, and will offer automated strategies
comparable to quant strategies employed by many hedge funds.

 

It will also have a research arm aggregating news in the sector and market
insights, and would present this to clients so they can see what it could
mean for their portfolios.

 

Emil Woods, founding partner of Liberty City Ventures, said: “We are
thrilled to partner with one of the finest technical and business-savvy
teams in blockchain and crypto."

 

RIT declined comment.

 

($1 = 0.7178 pounds)

 

The Thomson Reuters Trust Principles.

 

 

 

Spain's La Liga agrees to sell 10% stake to CVC for $3.2 bln

(Reuters) - La Liga, Spain's top soccer league, has agreed in principle to
sell 10% of its business to private equity firm CVC Capital Partners for 2.7
billion euros ($3.21 billion) to help finance its long-term growth plans, it
said on Wednesday.

 

The deal values La Liga at around 24.2 billion euros and, if approved, will
fund structural improvements while also offsetting some of the immediate
impact from COVID-19, the league said in a statement.

 

"This agreement aims to lead the transformation that the entertainment world
is undergoing and to maximise all growth opportunities for clubs."

 

Some 90% of the funds raised will be channeled directly to clubs, which must
use them to finance investment programmes agreed upon with La Liga.

 

With the boost from the investment, the Spanish league hopes to match or
exceed the English Premier League's business in the next six to seven years,
a source close to La Liga added.

 

The stake sale still requires approval from the league's executive committee
and clubs.

 

If approved, it could help cash-strapped teams including FC Barcelona shore
up faltering finances that were dealt a fresh blow by the pandemic.

 

The private equity firm, as part of a consortium last year, entered talks to
buy a stake in the media business of Italy's top soccer league. The deal
fell through following objections from some soccer clubs.

 

Earlier this year, La Liga expanded its partnership with Microsoft Corp
(MSFT.O) in a bid to boost revenue for its pandemic-hit soccer clubs and
re-energise a fan base that is consuming ever more digital products.

 

($1 = 0.8424 euros)

 

The Thomson Reuters Trust Principles.

 

 

 

Nigeria Gets U.S.$3.35 Billion in IMF's Historic U.S.$650 Billion SDR
Allocation

The Board of Governors of the International Monetary Fund (IMF) has approved
a general allocation of Special Drawing Rights (SDRs) equivalent to $650
billion (about SDR 456 billion) to boost global liquidity.

 

The Washington-based institution which disclosed this in a statement
yesterday, revealed that Nigeria would be allocated about $3.35 billion out
of the sum.

 

SDRs are supplementary foreign exchange reserve assets defined and
maintained by the IMF. They are units of account for the IMF, and not a
currency per se. Also, they represent a claim to currency held by IMF member
countries for which they may be exchanged. SDRs were created in 1969 to
supplement a shortfall of preferred foreign exchange reserve assets, namely
gold and United States dollars.

"This is a historic decision - the largest SDR allocation in the history of
the IMF and a shot in the arm for the global economy at a time of
unprecedented crisis.

 

"The SDR allocation will benefit all members, address the long-term global
need for reserves, build confidence, and foster the resilience and stability
of the global economy. It will particularly help our most vulnerable
countries struggling to cope with the impact of the COVID-19 crisis," IMF's
Managing Director, Kristalina Georgieva, was quoted to have said.

 

It revealed that the general allocation of SDRs would become effective on
August 23, 2021.

 

According to the statement, the newly created SDRs would be credited to
IMF's member countries in proportion to their existing quotas in the Fund.

About $275 billion (about SDR 193 billion) of the new allocation would go to
emerging markets and developing countries, including low-income countries.

 

"We will also continue to engage actively with our membership to identify
viable options for voluntary channeling of SDRs from wealthier to poorer and
more vulnerable member countries to support their pandemic recovery and
achieve resilient and sustainable growth," Georgieva said.

 

According to the statement, one key option is for members that have strong
external positions to voluntarily channel part of their SDRs to scale up
lending for low-income countries through the IMF's Poverty Reduction and
Growth Trust (PRGT).

 

"Concessional support through the PRGT is currently interest free. The IMF
is also exploring other options to help poorer and more vulnerable countries
in their recovery efforts. A new Resilience and Sustainability Trust could
be considered to facilitate more resilient and sustainable growth in the
medium term," the statement added.-This Day.

 

 

Nigeria: Address the Rising Cost of Gas

The recent increase in the price of cooking gas is a source of concern to
many Nigerians. The product has witnessed a steady increase in price in the
past four months. A kilogramme of the product is now going for about N500
across the country as against N430 in March, N450 in April and N480 in June.

 

As reported in the press, the price of cooking gas has continued to rise
across the country on account of what has been described as acute scarcity
of the commodity.

 

This has been attributed to the devaluation of the naira principally as
importers have suddenly been confronted with an increase in the landing and
related cost of supplying the product to consumers in the country.

This development led to the scarcity of the commodity as it takes a longer
period to get the product into the country because the importers have to
renegotiate and adjust to the new price with the foreign suppliers.

 

The combined scarcity and rising cost of the commodity have placed a heavy
burden on Nigerians. This is in addition to the financial burden they have
had to carry due to the general economic situation.

 

For some time now, prices of commodities have gone nowhere but high, but
what is most saddening about this development is the fact that Nigeria has
the product in abundance.

 

The situation has once again brought to the fore the paradox of Nigeria, not
being able to harness its abundant resources for the full benefit of its
citizens.

With four refineries and a fully functioning Liquefied Natural Gas plant in
Bonny Island in Rivers State, where the commodity is produced, it is indeed
odd that Nigeria resorts to importation to get gas supplies for consumption.

 

The Nigeria Liquefied Natural Gas (NLNG) which supplies the bulk of gas in
the domestic market says it has enough capacity to meet the entire demand of
the country and is willing to do so optimally.

 

But the challenges in gas production and supply cut across the entire value
chain of the commodity. These range from the fact that there are only few
off-takers with the technical capacity to evacuate the product, few
receiving terminals and depots just as transportation of the product to
various parts of the country and filling stations is a problem. Another key
factor is the low production and availability of gas cylinders in the
country.

 

These are issues that relevant stakeholders ought to have addressed long
before now as they did not just spring up. We should not resort to
importation anytime we notice bottlenecks in local production.

The way to go is to look at those problems and address them. That will save
the country the much needed foreign exchange which it expends on
importation, in this case, gas.

 

It is worthy to note that due to the scarcity and high cost of the product,
some Nigerians have resorted to using firewood to cook. These woods are got
from cutting down of trees and this, in itself, has implications on the
environment and the health of the users.

 

At a recent event in Kano State, the federal government promised to reduce
the cost of gas. We urge it to hasten the process to bring relief to
citizens.

 

The government should also work with relevant stakeholders to close the gap
in the observed deficiencies in the gas value chain. Over the years, there
have been a number of proposals and initiatives to tackle the issue of gas
production and supply in the country. The conclusion of these reports
indicates that there is a vast untapped market for gas, which will greatly
add to the energy mix in the country. Government should consider
implementation of some of the proposals which will help in the quest to
boost gas supply not just for local consumption but to serve as a major
revenue earner for the country.-Daily Trust.

 

 

 

Mozambique: Pemba Bay Not Contaminated By Fuel Spill

Maputo — A multi-sector government team sent to investigate a spill of fuel
in the Bay of Pemba, off the coast of the northern Mozambican province of
Cabo Delgado, has ruled out the possibility of contamination of the waters
of the bay.

 

According to a Tuesday press release from the Ministry of Mineral Resources
and Energy, no marine fauna was found dead and floating in the water within
a radius of 300 metres from the spill.

 

The spill, believed to have happened before dawn on Saturday morning
involved about 5,000 litres of a fuel which the government team identified
as diesel. It affected an area of about 3,000 square metres.

It is still not clear where the diesel came from. The team ruled out any
leak from the pipe carrying fuel from the port of Pemba to the storage tanks
operated by the state fuel company, Petromoc.

 

The team suspected that the smuggling of fuel was behind the spill.
Certainly a large number of people tried to take advantage of the spill,
descending on the Sagal beach in Pemba with plastic containers and scooping
up as much of the spilled fuel as they could.

 

The Ministry release said the government is attempting to identify whoever
was responsible for the spill since they can be held responsible for any
damage. All boats in the Bay of Pemba should be inspected to see if the
diesel came from one of them.

 

The team called for laboratory analysis of water samples to check for any
damage that could not be seen by the naked eye, "and to monitor possible
adverse effects". It also urged Petromoc to step up security on its pipeline
"to certify that it is not being violated"

 

 

 

Malawi Parliament Reveals Govt Loans Are Not Trickling Down to Ordinary
Malawians

Chairperson for the Budget and Finance Committee of Parliament, Gladys
Ganda, has expressed disappointment with the tendency by the government to
use ordinary Malawians as pawns in justifying loans it get from various
financial institutions.

 

Ganda observed that 'literally none of the money' the Malawi Government has
been borrowing over the decades has trickled down to overburdened taxpayers.

 

The Democratic Progressive Party (DPP) Member of Parliament for Nsanje
Lalanje made the lamentation in Lilongwe at the launch of a new project,
which the Malawi Economic Justice Network (MEJN) has initiated with
financial support from Open Society for Southern Africa (OSISA).

Through the project, which is titled 'Fostering Transparency and
Accountability in Public Debt Contracting Management in Malawi', MEJN seeks
to foster social accountability in debt contracting and management so as to
inspire the government to curb its borrowing appetite and contract debt on
sustainable basis.

 

And in her remarks, Ganda expressed concern that Malawians continue to
languish in abject poverty yet the government borrows huge sums of money in
the name of improving the social and economic livelihoods of the citizens.

 

"We recently conducted a survey to assess how these debts are being
transforming the lives of the intended beneficiaries, but we found that none
on the ground," she said.

 

Ganda further lamented the meagre resources her Committee gets, which she
said is a deterrent to its oversight role on all financial bills that are
approved by Parliament.

She called for the amendment of the Public Finance Management Act (PFMA) to
ensure that the Act empowers the Budget and Finance Committee to discharge
its mandate more efficiently by, among others, asking specific reports from
Ministry of Finance.

 

The Budget and Finance Committee of Parliament is mandated to scrutinize
government domestic and international borrowing policies and to scrutinize
reports on financial and economic issues and policies of the government,
including statistical information relating to international financial
agreements.

 

Ganda, therefore, applauded MEJN for involving Parliament, through the her
Committee, in launching this project.

 

"As you are all well aware, the country has been operating under large
budget deficits, which have substantially increased the risk of debt
distress as we resort to borrowing to finance the budget. In the current
nine-month public debt charges continue to exert pressure on expenditures,
claiming 15 percent of the total national budget. More specifically, over
the nine-month financial year, government expects to borrow MK718.32
billion. This means 36.1 percent of total expenditure will be financed
through borrowing, which is an increase from 34.8 percent in the 2020/21
budget," she said.

Ganda added, "These figures are worrisome and even more worrisome is the
country's total debt stock, which currently stands at MK4.7 trillion (which
is 54 percent of GDP). I, on behalf of the Honourable Members here present
and my own behalf, would like thank the Open Society for Southern Africa
(OSISA) for funding MEJN in the implementation of this important project
which will promote transparency and accountability in public debt
contracting and management in the country."

 

MEJN vice chairperson Jeff Kabondo concurred with Ganda, stressing that debt
repayment is choking delivery of public services in Malawi.

 

However, Kabondo expressed delight with the strides the 'current
administration has already started making some strides to reduce the debt to
a manageable status and commit most of our budgetary resources towards
investments and provision of quality services to our citizens'.

 

"We believe that this is a move by government towards taming its appetite
for borrowing and try to live within its means for this is the only way we
can achieve meaningful development and attain the Malawi 2063 aspirations,"
he said.-Nyasa Times.

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


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.

 


 

 


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<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
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