Major International Business Headlines Brief::: 14 August 2021

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Major International Business Headlines Brief::: 14 August 2021

 


 

 


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

 


 

 


ü  Will I ever be able to fly without feeling guilty again?

ü  Cost of NHS Covid tests for UK arrivals reduced

ü  Crypto hacker offered reward after $600m heist

ü  Ningbo: Global supply fears as China partly shuts major port

ü  UK inhaler firm Vectura backs £1bn bid by Marlboro-maker

ü  Ford counterattacks in 'cruise' dispute with GM

ü  U.S. consumer sentiment plummets in early August to decade low

ü  IBM to allow only fully vaccinated to return to U.S. offices from Sept. 7

ü  Wall St Week Ahead Investors give value stocks a second look as bond
yields rally

ü  U.S. workplace regulator says vaccinated workers should wear masks

ü  Cuba dips toe in market economy with legalization of small businesses

ü  Pfizer, Moderna seen reaping billions from COVID-19 vaccine booster
market

ü  Disney's recovery ride hinges on Delta as theme parks swing to profit

ü  Dollar retreats as consumer sentiment dives

ü  Disney helps lift Dow, S&P 500 to records

ü  Namibia: !kharoxas to Benefit From Solar Project

ü  Kenya: Puzzle of SGR Builder Set to Pocket Sh60m Per Kilometre for Murram
Road

ü  Uganda: Govt, SMEs in Discussions to Save Small Businesses

 

 


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Will I ever be able to fly without feeling guilty again?

For Maggie Robertson, it was a long-haul flight to Texas that changed her
mind about flying.

 

It was 2017 and she was having a great holiday. But then Hurricane Harvey
came along - and she and her family narrowly sidestepped floods that cost
more than 100 lives.

 

"That brush with natural disaster helped put things in perspective," she
says.

 

Previously a regular flyer, visiting friends in Scotland and holidaying
abroad, she says the penny dropped during that trip. And in the end, the
decision was easy.

 

"It was a relief to say I'm not doing it any more," she says. "I knew that
what I was doing wasn't consistent with what I thought was right."

 

She is one of a small band of people who have found flying just too
uncomfortable to contemplate any more.

 

Many more people are still boarding the planes, but wrestling with a growing
sense of shame.

 

They now feel that their desire for a holiday in the sun or a far-flung
adventure is playing a small but undeniable part in the growing crisis of
extreme weather events, rising sea levels and melting polar ice.

 

Flying is only responsible for around 2% of global emissions. That may not
sound much, but if you are a flyer, it's a much higher proportion of your
own carbon footprint. That's because more than 80% of the world's population
never fly at all.

 

One flight from London to New York emits around 1,360kg of carbon. Even if
you eat vegan and cycle everywhere, you'd struggle to make up for the
emissions from a return trip.

 

Infographic - top 10 options for reducing your carbon footprint

Those are the kind of calculations that persuaded Maggie Robertson to sign
up to Flight Free, an online club, where members pledge to avoid flying for
a year at a time.

 

Anna Hughes, its founder, says she doesn't want to make people feel guilty
about flying, but she would like them to be more aware.

 

"We're not suggesting that flying should go back to being the preserve of
the rich. But we should definitely start to see it as once-in-a-while, if it
is necessary, not just to go to Prague for a stag do," she says.

 

Yet last month, the government told us it was fine to keep on flying.

 

Saving the planet wasn't about stopping doing things, it was about doing
them differently, said Transport Secretary Grant Shapps, announcing the
government's plan for decarbonisation. He raised the prospect of
super-efficient aircraft, running on hydrogen, batteries and sustainable
fuel.

 

That's the view of the broader aviation industry, that flying is becoming
cleaner and greener, thanks to the march of technology.

 

"The industry has got a clear plan to decarbonise aviation, and there are a
lot of opportunities and proven technologies that can do that," says Andy
Jefferson, programme director at an organisation called Sustainable
Aviation, which works on behalf of the government and the industry,
including manufacturers and airports.

 

"Part of the solution will be the evolution of existing types of aeroplanes,
as each time they come online, they're in the region of 15% to 20% more
efficient and better than the aircraft they're replacing," he says.

 

In addition, things such as making sure a plane doesn't carry more fuel or
water than it needs, not maintaining planes in holding patterns as they wait
to land, and keeping the engines well-maintained to ensure they operate
efficiently, can all make flying greener.

 

In the longer run, aircraft could switch away from using fossil fuels
altogether, says Mr Jefferson.

 

"In terms of battery electric aircraft and hydrogen-powered aircraft, the
industry has already got two-seater, five-seater type aircraft flying
today," he points out.

 

By the mid-2030s, Mr Jefferson believes we could be taking holidays to the
Med in that kind of aircraft or using sustainable fuels from waste materials
or crops.

 

So does that mean people can fly with a clear conscience?

 

The trouble with the message, "Carry on with your lifestyles, we're solving
it," says Anna Hughes, is that it is rather "promise-heavy".

 

In the past, efficiency gains from new planes and better flight management
have been swallowed up by big increases in the volume of air traffic, so
that aviation as a whole is still emitting more than ever.

 

And many experts question industry optimism about how quickly renewable
fuels will become mainstream.

 

In the meantime, say environmentalists, if you fly, you are contributing to
the build-up of carbon in the atmosphere that causes global warming. So
short-term carbon savings are just as important as hitting longer term
goals.

 

"I think it's misleading for the consumer to say, 'Keep on flying, It's OK.'
It's not giving the whole picture," says Ms Hughes.

 

So what about offsetting? Is that the answer for travellers who want to
compensate for the impact of their flight?

 

There are hundreds of offsetting schemes around the world, offering
passengers the opportunity to pay towards climate-friendly projects such as
protecting the rainforests, installing renewable energy and distributing
carbon efficient cookstoves in poor African communities.

 

But offsetting is controversial. In fact, Mike Childs, Friends of the
Earth's head of policy, describes it as "the greatest con on Earth".

 

Should I offset my summer holiday flights?

"They're trying to pretend that your emissions don't count because you can
offset, but the offsets aren't real, they don't last, they're not
permanent."

 

He suggests that, instead you use the offset money to take a train next time
or donate to your local nature reserve.

 

On the other hand, he doesn't think individuals should necessarily feel
racked with guilt every time they board a plane.

 

"We have got a downer on flying, but we're not saying nobody should ever fly
at all," he says.

 

"We don't want to attack people who go on holiday once a year, who perhaps
can't afford to go by train or don't have the time to go by train."

 

Rather, he thinks it is up to governments to make change happen, by taxing
aviation fuel, making long-distance train travel more affordable and putting
in place policies to discourage frequent flying.

 

"We can spend our whole life feeling guilty or we can do what we can to try
and minimise [our impact]," Mr Childs says.

 

"Some people will be carbon angels and rule out absolutely everything, but
we also have to live in the real world and recognise that other people can
go so far."

 

Maggie Robertson doesn't see herself as a carbon angel. But she can't
imagine being able to fly with an easy conscience again any time soon.

 

She volunteers for Flight Free and has already managed a pre-pandemic summer
holiday in Switzerland by train.

 

"Low-carbon flying will be important for people who have to fly, but I'm not
optimistic that it is going to transform things to the point where we can
all fly as much as we want," she says.

 

Even if it it can be achieved in the medium-term, she adds, it won't remove
the emissions of the flying we do now, "so it's not an excuse to carry on as
normal."-BBC

 

 

 

Cost of NHS Covid tests for UK arrivals reduced

The cost of NHS coronavirus tests for international arrivals to the UK have
been reduced, the government has said.

 

Test and Trace tests have been cut from £88 to £68 for people arriving from
green-listed countries and for those coming from amber-listed countries who
are fully vaccinated.

 

Meanwhile, the price of two tests for amber arrivals who have not had both
jabs has been cut from £170 to £136.

 

The prices of all providers of day two and eight tests are to be reviewed.

 

It comes after Health Secretary Sajid Javid asked the competition watchdog
to investigate "excessive" pricing and "exploitative practices" among PCR
Covid test firms.

 

He said misleading pricing will be clamped down on and providers failing to
meet necessary standards will be removed from the government's approved
list.

 

NHS Test and Trace advertises its tests alongside private companies'
packages and they are available to purchase to fulfil the government's
testing requirements for international travel.

 

This is the second time the price of NHS tests has been reduced; previously
the cost of a day two and eight package was £210.

 

'Too many cowboys'

It is understood that if the review finds private companies are offering
terms that are unfair and therefore unenforceable, enforcement action could
be taken by the Competition and Markets Authority or Trading Standards.

 

If businesses are found to have breached consumer law, they could be subject
to a court order to stop operating and told to compensate consumers.

 

"I am determined to protect consumers and hardworking families from
exploitative practices and ensure high quality tests are available at a
reasonable price," said Mr Javid.

 

"Too many providers are acting like cowboys and that needs to stop. The
public should be allowed to enjoy their summer holidays without having to
face excessive costs or anxiety.

 

"Any provider found to be misleading the public will be kicked off."

 

Holidaymakers have complained of high prices and poor service from many of
the 400-plus firms offering PCR tests and there have been reports that some
have not got full accreditation.

 

According to reports, PCR test prices can range from as little as £20 to
more than £500. There have also been complaints from consumers that they
have not received test results or have been sent damaged PCR kits.

 

The government said providers must use laboratories that are either
accredited or undergoing accreditation by the independent United Kingdom
Accreditation Service, and that businesses that fail to meet standards will
be removed from its list of approved providers.

 

The CMA has previously said formal investigations can take a long time, but
in this instance it will provide advice to Mr Javid with a view to taking
swift action.-BBC

 

 

 

Crypto hacker offered reward after $600m heist

A hacker who stole just over $600m (£433m) worth of cryptocurrency was
offered $500,000 and immunity as a reward for returning the money.

 

Poly Network made the controversial offer after the hacker pledged to send
back the money.

 

The attack was uncovered on Tuesday when Poly Network publicly pleaded with
the hacker to help.

 

One former FBI official said "private companies have no authority to promise
immunity from criminal prosecution".

 

The attack is one of the largest hacking heists in history. Poly Network
said the person had exploited a vulnerability in its system.

 

Most of the money has now been given back, although the hacker says they are
not interested in the reward.

 

Shortly after the hack the anonymous individual posted notes to the publicly
available blockchain taunting the company and asking for advice on how to
launder his stolen riches.

 

Later, the criminal claimed "not to be interested in money" and promised to
return it all.

 

By Thursday evening, Poly Network said most of the remaining assets in the
hacker's possession had been transferred to a digital wallet controlled by
both the hacker and the company.

 

Poly Network says it is still waiting for the repayment process to be fully
completed but that it is working with the hacker.

 

A portion of the stolen coins were frozen shortly after the attack have not
yet been transferred but can't be used by the hacker anyway.

 

"The hacker still holds $33.4m of stolen Tether [tokens] - because it has
been frozen by Tether themselves," Tom Robinson, co-founder of Elliptic, a
London-based blockchain analytics and compliance firm, told the BBC.

 

He added that it could be seen on the blockchain that "a few thousand
dollars' worth of various other tokens" were being held onto by the hacker.

 

It was not clear, however, if these were part of the stolen assets, or
donations that the hacker requested people to send them on Thursday as a
thank you for returning the money.

 

Other money outstanding also includes a 13.37 Ether tip ($40,000), which the
hacker sent to a user who warned them that the Tether tokens had been frozen
by its developer.

 

In a three page Q&A posted online the anonymous hacker claimed he or she
carried out the heist for fun and to encourage cryptocurrency exchange firm
Poly Networks to improve its security.

 

Immunity

Poly Network appears to have accepted the explanation and dubbed the hacker
"Mr White Hat".

 

White hat hackers are ethical security researchers who use their skills for
good to help organisations find security flaws.

 

Poly Network confirmed that it sent a note to the attack saying "we believe
that your action is white hat behaviour, we plan to offer you a $500,000"
reward.

 

The firm added: "We assure you that you will not be accountable for this
incident."

 

The alleged move has angered some in the security world who are worried that
it might set a precedent for criminal hackers to white-wash their actions.

 

Katie Paxton-Fear, a white hat hacker and lecturer at Manchester
Metropolitan University, says that "labelling this hack as white hat is just
really disappointing".

 

Mrs Paxton-Fear has found over 30 vulnerabilities in organisations ranging
from the US Department of Defense (DoD) to Verizon Media.

 

'No authority'

"White hat hacking is all about having a scope, not touching some systems,
working with the team, writing professional reports detailing our findings,
not going further than we have to to demonstrate risk," she said.

 

"Our approach is 'first, do no harm', potentially verifying fixes are put in
place and not putting any users data at risk."

 

Charlie Steele, Partner at Forensic Risk Alliance and former Department of
Justice and FBI official is also concerned about the alleged offer from Poly
Network.

 

"Private companies have no authority to promise immunity from criminal
prosecution," he told the BBC.

 

He added: "In this event where a hacker stole the $600m 'for fun' and then
returned most of it, all while remaining anonymous, is not likely to lessen
regulators' concerns about the variety of risks posed by
crypto-currencies."-BBC

 

 

 

Ningbo: Global supply fears as China partly shuts major port

The partial closure of one of China's biggest cargo ports due to coronavirus
has raised fresh concerns about the impact on global trade.

 

Services were shut on Wednesday at a terminal at Ningbo-Zhoushan port after
a worker was infected with the Delta variant of Covid-19.

 

Ningbo-Zhoushan in eastern China is the world's third-busiest cargo port.

 

The closure threatens more disruption to supply chains ahead of the key
Christmas shopping season.

 

Closing the terminal on Meishan island until further notice will cut the
port's capacity for container cargo by about a quarter.

 

It comes as the cost of shipping from China and South East Asia to the East
coast of the US has already hit a record high, according to the Freightos
Baltic global container freight index.

 

And some UK businesses were already feeling the pressure of much higher
shipping costs.

 

Jason Chiang from Ocean Shipping Consultants told the BBC's Asia Business
Report that the global shipping industry is likely to feel the impact of the
pandemic for several more months.

 

"We don't expect to see any new shipping capacity until two years down the
road. So everything between now and two years will be dependent on how the
pandemic plays out," he said.

 

Ningbo-Zhoushan is the world's third-biggest cargo port after Shanghai and
Singapore.

 

For people trying to ship goods from East Asia to Europe or the US, it's one
blow after another.

 

The Covid crisis put the container shipping industry under intense pressure
by knocking normal patterns of supply and demand out of kilter.

 

Then came the Ever Given, which blocked the Suez canal for six days,
delaying hundreds of vessels and causing knock-on effects that lasted for
weeks.

 

And on top of that, partial closures of key terminals in China - at Yantian
earlier in the year and now Ningbo - have caused further disruption.

 

Each time something like this happens, it can trigger further problems,
including congestion at other ports - many of which are already operating at
a slower rate than usual due to Covid restrictions.

 

Shipping lines are pretty happy, because container rates are sky high. For
importers it's a different matter.

 

"Perfect storm" is an overused cliche, but right now it's a good description
of what's going on in the industry. Certainly this is more than merely a
case of choppy waters.

 

If the terminal remains shut for an extended period it could have an
especially large impact on the world economy.

 

In the city of Ningbo, where the port is located, authorities have also
suspended inbound and outbound flights to China's capital Beijing.

 

A district close to the port has also been put on partial lockdown as
businesses including cinemas, gyms and bars have been shut.

 

The port's closure comes as global trade is usually much heavier in the
second half of the year as businesses in Europe and North America prepare
for a jump in sales ahead of Christmas and other holidays.

 

This is the second coronavirus-related closure to hit a Chinese port in
recent months after Yantian in Shenzhen was partially shut for several weeks
from the end of May.

 

Companies were already struggling to source the goods to keep their business
going as the pandemic shut down economies around the world.

 

Global supply chains were put under even more strain when a huge container
vessel became stuck in the Suez Canal in March.

 

The Ever Given, which carries cargo between Asia and Europe, blocked the
major shipping lane in Egypt for almost a week.

 

That caused huge disruptions and delays to the global shipping industry as
vessels were forced to wait for the canal to reopen or take the much longer
route around the southern tip of Africa.-BBC

 

 

UK inhaler firm Vectura backs £1bn bid by Marlboro-maker

Directors at UK inhaler company Vectura have recommended shareholders accept
a £1bn bid from tobacco giant Philip Morris International (PMI).

 

The Marlboro cigarette maker's offer of £1.65 per share beat a rival bid
from US private equity group Carlyle, whose final offer was £1.55 per share.

 

Vectura makes inhaled medicines and devices to treat respiratory illnesses
such as asthma.

 

Dozens of health groups had urged Vectura to reject the firm's offer.

 

The health groups warned that the deal would significantly harm the future
prospects of the healthcare company, as it will deter top lung researchers
and scientists unwilling to work for a tobacco company.

 

Shares in Vectura, which counts Novartis and GSK among its customers, have
soared 33% in value since Carlyle's first offer in May.

 

Philip Morris recently said it could stop selling cigarettes in the UK in 10
years' time as it focuses on alternatives, such as heated tobacco.

 

The firm indicated it would welcome a government ban on cigarettes and said
"strong regulation" was needed to "help solve the problem of cigarette
smoking once and for all".

 

However, health charity Ash said it was hard to take such claims seriously
from the firm responsible for selling over a tenth of cigarettes globally.

 

Labour's shadow health secretary Jonathan Ashworth said: "Philip Morris's
attempted takeover of a key player in lung health products beggars belief.
It is bitterly disappointing that Vectura have so far failed to exercise
duty of care to patients and scientists and reject this takeover by big
tobacco.

 

"This is now a test for Sajid Javid. When we know smoking causes so much
serious illness and premature death, it's time this government takes the
right course, stands up to this tobacco giant and blocks this takeover."

 

Sources close to the deal tell me the company feels their primary duty is to
shareholders and note that PMI must be allowed a chance to transition to its
stated goal of deriving half its revenue from non tobacco products within a
decade.

 

Some have also questioned whether this deal is any different in principle
from oil and gas companies investing in renewable energy.

 

However, this decision will be treated with dismay by health groups and will
disappoint many shareholder groups who hoped this deal be an acid test of
whether shareholders really prized wider societal goals over getting the
best price.

 

PMI will need to convince 51% of shareholders to take the money for it to
take control. Many other shareholders may feel uncomfortable being a
minority shareholder in a tobacco company subsidiary.

 

A letter sent by more than 20 UK, US and European health organisations on
Thursday had urged Vectura's board to "put sustainability and ethics first".

 

The signatories included the bosses of Asthma UK, the British Lung
Foundation, the Royal Society for Public Health and the Royal College of
Physicians, as well as public health directors of several councils and some
distinguished medical professors from King's College, Imperial College and
University College London (UCL).

 

"If PMI were to acquire Vectura, PMI could then profit from treating the
very illnesses that its products cause," they wrote.

 

One of the health groups' key concerns is that Vectura's research links with
various universities and hospitals could be compromised.

 

The signatories warned that Vectura could be blocked from participating in
clinical trials, thus "disrupting crucial drug development".

 

They added that professional partnerships could also be affected, since
Vectura won the most contracts in 2020 to develop treatments for respiratory
disease and lung cancer.

 

The takeover battle began in May with a £958m bid from Carlyle, which
received early backing from Vectura's board.

 

But on 8 August, Philip Morris increased its offer to £1.65 per share, which
totalled a bid of about £1.02bn ($1.41bn) from the Marlboro cigarette-maker.

 

London-listed shares of Vectura closed at £1.63 on Thursday after hitting a
more than five-year high of £1.76 pence on Tuesday.-BBC

 

 

 

Ford counterattacks in 'cruise' dispute with GM

(Reuters) - Ford Motor Co (F.N) said late on Friday it will ask the U.S.
Patent Office to rescind trademarks obtained by rival General Motors Co
(GM.N) for the terms "Cruise" and "Super Cruise," escalating a brawl GM
began by suing Ford over its use of "Blue Cruise" for an automated driving
system.

 

The legal fight between the two Detroit automakers turns on whether "cruise"
is a generic term for technology that allows the car to take over some share
of driving tasks from a human motorist.

 

The clash underscores the intensity of competition among established
automakers to be seen as leaders in automated driving technology,
competitive with Silicon Valley rivals Tesla Inc (TSLA.O), Alphabet
Inc(GOOGL.O) 's Waymo unit and others.

 

GM filed a federal suit against Ford on July 24, accusing Ford of violating
GM trademarks by using the name "Blue Cruise" for a system that enables
hands-free driving. read more

 

GM had previously trademarked "Super Cruise" for its hands-free, partially
automated driving technology. It also has trademarked "Cruise," the name of
its robo-taxi unit in San Francisco.

 

Ford reiterated on Friday its position that GM's suit is frivolous. The
effort to nullify GM's trademarks for the use of the word "cruise" takes the
fight to a new level.

 

"To defend itself, Ford has no choice but to ask the U.S. Patent and
Trademark Office to rescind both of GM’s “Cruise” and “Super Cruise”
trademark registrations that should have never been registered in the first
place," Ford said. "Any number of companies use the word 'cruise' in
connection with driver assist technology."

 

Among the examples Ford cited: "Predictive Cruise," marketed by Mack Trucks;
"Smart Cruise Control" marketed by Hyundai Motor Co (005380.KS), and
Autocruise, used by auto supplier ZF Friedrichshafen AG.

 

GM said Friday that Super Cruise "has had a well established commercial
presence since 2017," and added in a statement that the company "remains
committed to vigorously defending our brands and protecting the equity our
products and technology have earned over several years in the market and
that won’t change."

 

The Thomson Reuters Trust Principles.

 

 

 

U.S. consumer sentiment plummets in early August to decade low

(Reuters) - U.S. consumer sentiment dropped sharply in early August to its
lowest level in a decade, in a worrying sign for the economy as Americans
gave faltering outlooks on everything from personal finances to inflation
and employment, a survey showed on Friday.

 

The unexpected reading could give Federal Reserve policymakers pause if it
translates in the months ahead to a dent in economic activity. The central
bank has been getting closer to a decision on when to begin pulling back the
extraordinary stimulus it put in place to shield the economy from the
COVID-19 pandemic.

 

The University of Michigan said its preliminary consumer sentiment index
fell to 70.2 in the first half of this month from a final reading of 81.2 in
July. That was the lowest level since 2011, and there have been only two
larger declines in the index over the past 50 years. Those were at the
depths of the 2007-2009 recession and during the first wave of shutdowns in
April 2020 at the beginning of the pandemic.

 

The losses were widespread across income, age, and education subgroups and
spanned all regions. Economists polled by Reuters had forecast the index
would remain unchanged at 81.2.

 

U.S. stock market indexes slipped immediately after the report was released,
while the price of gold gained ground. U.S. Treasury bond yields hit session
lows.

 

"The renewed plunge suggests the latest wave of virus cases driven by the
Delta variant could be a bigger drag on the economy than we had thought,"
said Andrew Hunter, an economist at Capital Economics.

 

Economic growth is still expected to grow this year at its fastest pace in
four decades after falling into a brief recession in 2020 caused by the
coronavirus pandemic. But the recovery is showing some indication of cooling
off.

 

COVID-19 cases have doubled in the past two weeks to reach a six-month peak
as the more transmissible Delta variant spreads rapidly across the country.
Labor shortages across the service sector also persist while supply chain
disruptions have continued.

 

"The pandemic's resurgence due to the Delta variant has been met with a
mixture of reason and emotion...mainly from dashed hopes that the pandemic
would soon end," Richard Curtin, the survey director, said in a statement.

 

The survey's gauge of current economic conditions also declined to a reading
of 77.9 from 84.5 in July while its measure of consumer expectations slid to
65.2 from 79.0 in July.

 

The survey also showed consumers raising their expectations for medium term
inflation, another measure the central bank is closely monitoring to ensure
that inflation expectations remain anchored.

 

The survey's one-year inflation expectation edged lower to 4.6%, down from
4.7%, but its five-year inflation outlook ticked up to 3.0% from 2.8% in
July.

 

Consumer price increases slowed in July, the Labor Department said on
Wednesday, but inflation overall remained at a historically high level amid
lingering supply-chain disruptions and stronger demand for travel-related
services. read more

 

The Thomson Reuters Trust Principles.

 

 

IBM to allow only fully vaccinated to return to U.S. offices from Sept. 7

(Reuters) - International Business Machines Corp (IBM.N) said on Friday that
it would allow only fully vaccinated U.S. employees to return to offices,
which are set to open from Sept. 7, given the rapid spread of the Delta
variant of COVID-19.

 

"We will still open many of our U.S. sites, where local clinical conditions
allow, the week of Sept. 7. However, the reopenings will only be for fully
vaccinated employees who choose to come into the office," Chief Human
Resources Officer Nickle LaMoreaux said in a memo sent to employees.

 

The resurgence of COVID-19 cases in the United States due to the Delta
variant and the new guidance from the U.S. Centers for Disease Control and
Prevention (CDC) that requires fully vaccinated individuals to wear masks
have led companies to change their plans on return to office, vaccinations
and masking.

 

The technology firm also asked its employees to get fully vaccinated,
joining other big techs to fight the spread of the virus.

 

Earlier on Thursday, Facebook Inc (FB.O) has pushed back its office return
date for all U.S. and some international employees until January 2022, while
AT&T Inc (T.N) said it will require management employees to be vaccinated
before entering a work location.

 

The Thomson Reuters Trust Principles.

 

 

Wall St Week Ahead Investors give value stocks a second look as bond yields
rally

(Reuters) - U.S. value stocks may be getting a second wind, as bets on
economic strength bolster Treasury yields and lift cyclically-sensitive
shares that have stagnated in recent months after a powerful rally earlier
this year.

 

The S&P 500 value stock index (.IVX), which is relatively heavily weighted
in shares of financials, energy firms and other economically sensitive
companies, is up 5.5% from last month's lows, outperforming its tech-heavy
counterpart (.IGX) by more than a percentage point in a rally that
accelerated over the past week. The value index is up 18% this year, despite
stalling after a strong start to 2021.

 

The move may herald a nascent comeback for the so-called reflation trade, a
bet on rebounding economic growth that saw value stocks surge starting late
last year alongside Treasury yields. Yields have climbed this time around as
well, with the yield on the benchmark 10-year U.S. Treasury , which moves
inversely to prices, up about 20 basis points since last week, to 1.36%,
before pulling back on Friday.

 

“I do think value is somewhat of a coiled spring,” said Matt Peron, director
of research at Janus Henderson Investors, who believes value could
outperform for at least the next six months. “I do think it has another run
left in it.”

 

Investors pointed to several reasons for value's rosier outlook. While the
rise in coronavirus cases spurred by the Delta variant, remains a wildcard,
signs that infections may be slowing in Europe and parts of the United
States could mean that the lockdowns required last year will not be needed
for the foreseeable future, Peron said.

 

At the same time, some investors believe growth will remain strong in the
U.S. even after peaking in the second quarter. U.S. gross domestic product
is expected to rise 6.1% in 2021, and 4.8% in 2022, according to Oxford
Economics, stronger than what annual growth has been for the past decade.

 

"We haven’t seen growth rates this high in some time and that’s why we think
... value can keep outperforming, even once the rate of growth peaks," said
Sameer Samana, senior global market strategist at Wells Fargo Investment
Institute.

 

Among those calling for more gains in value stocks are technical strategists
at JPMorgan, who in the past week said the S&P 500 value index "looks poised
for a breakout." Truist Advisory Services on Wednesday said it expects more
upside for value over the next 12 months given the still strong economic
outlook and weak earnings trends for tech compared to the broader market.

 

Since the 10-year yield made a recent bottom last week, the S&P 500 value
index has climbed 2.4% against a 0.5% rise for its growth counterpart.

 

The value stock bounce comes as investors digest data from the past week
showing a potential peak in inflation, while looking ahead to the Federal
Reserve's Jackson Hole symposium at the end of the month. That event, or the
central bank's next policy meeting in September, could offer signals on when
it will begin unwinding the $120 billion a month government bond buying
program that has helped support asset prices. read more

 

Next week, the monthly U.S. retail sales report and earnings from retailers
such as Walmart (WMT.N) and Target (TGT.N) could shed more light on the
health of the consumer.

 

Investors are also keeping a close eye on Treasury yields, with rising
yields often viewed as a sign of economic optimism that could also boost
value stocks. Higher yields also particularly benefit profit margins of
banks, which tend to make up large portions of value indexes.

 

Plenty of stumbling blocks remain for the value trade. Signs that the
coronavirus is threatening the economic outlook could send investors back
toward large technology and growth shares that performed well for much of
2020. Data on Friday showing that consumer confidence fell to its lowest
level in a decade weighed on yields. read more

 

Treasury yields have also experienced several sharp swings this year,
wrongfooting investors. Yields on the 10-year fell to about 1.13% as
recently as Aug. 4 -- some 65 basis points below the year's highs.

 

Many investors may also be reluctant to overly reduce positions in growth
stocks, which dominated for much of the decade following the 2007-2009
financial crisis while value shares languished.

 

“It is this epic battle, back and forth between these two parts of the
market," said Matthew Miskin, co-chief investment strategist at John Hancock
Investment Management.

 

The Thomson Reuters Trust Principles.

 

 

 

U.S. workplace regulator says vaccinated workers should wear masks

(Reuters) - The U.S. agency that regulates workplace safety issued guidance
on Friday urging employers to require many fully vaccinated workers to wear
masks to protect unvaccinated colleagues and customers, amid a surge in
COVID-19 cases.

 

The Occupational Safety and Health Administration (OSHA) recommended that
workers wear masks "in areas of substantial or high community transmission,"
such as manufacturing plants, meat processing facilities and retail
establishments, unless they have medical conditions that make it difficult
to wear a face covering.

 

Employers should also consider staggering the times workers clock in and out
of work and take breaks to prevent large groups of people from congregating,
OSHA said. High-volume retail businesses should ask customers to wear masks
and consider requiring them. The agency had made similar recommendations
last year, early on in the pandemic.

 

The updated guidance comes as COVID-19 cases are on the rise across the
U.S., particularly in areas where large numbers of people remain
unvaccinated. Some preliminary studies have shown that vaccinated people are
still capable of spreading the highly contagious Delta variant of the
coronavirus.

 

An increasing number of employers have said they will require at least a
part of their U.S. workforce to be vaccinated. Walmart, Uber, McDonald's and
DoorDash have adopted mandates for corporate employees, and many airlines
and technology companies are requiring employees to be vaccinated.

 

Thursday's guidance, which is not legally binding, was issued after the U.S.
Centers for Disease Control and Prevention late last month recommended that
fully vaccinated individuals resume wearing face masks in public.

 

OSHA on Friday also said an emergency rule it adopted in June requiring
healthcare employers to mandate use of face masks, ensure proper ventilation
and limit the number of patients and visitors is "more important than ever"
and will remain in place for the time being. The agency said it would
revisit the requirements next month.

 

The Thomson Reuters Trust Principles.

 

 

 

Cuba dips toe in market economy with legalization of small businesses

(Reuters) - Thousands of small and medium-sized Cuban businesses will be
allowed to incorporate in the coming months, in one of the most important
economic reforms taken by the island's Communist government since it
nationalized all enterprises in the 1960s.

 

The reform, details of which came to light this week, will permit small and
medium-sized businesses for the first time since 1968, putting an end to the
legal limbo in which many have existed for years in the Soviet-style
economy.

 

The law will also apply to small and medium-sized state firms, paving the
way for an important decentralization of some activities and forcing
subsidized operations to become profitable or fold, according to Cuban
economists.

 

In the food service sector, thousands of government-subsidized eateries will
either close, become cooperatives or turn into small businesses, according
to a mid-level manager involved in the process who spoke on condition of
anonymity. Those it keeps will become small- and medium-sized state-owned
businesses competing with them.

 

While there have always been private farms and agricultural cooperatives in
Cuba, most of the economy was in state hands until the 1990s when heavily
regulated small businesses were allowed in a few areas under the rubric of
self-employment, limiting their legitimacy and legal standing.

 

The new measures are a key part of the economic reforms undertaken by new
Cuban leader Miguel Diaz-Canel over the last year, as the coronavirus
pandemic and tougher U.S. sanctions pushed the shaky economy into a tailspin
and shortages of food, medicine and other basic goods reached alarming
proportions.

 

Economy Minister Alejandro Gil said in a televised presentation Wednesday
evening the measures would put state and private business on an equal
footing to compete, work together and create joint companies, much as in
capitalist countries.

 

"It is a starting point for a new stage in the diversification of the
economy and its development, in order to make the most of its potential,"
Gil said, adding that the reform would boost employment and allow the
economy to rebound more strongly as the pandemic eased.

 

MIXED ECONOMIC MODEL

 

Creation of micro, small and medium-sized (MSME) businesses was fast-tracked
upon approval in May by Cuba's Council of Ministers.

 

The new MSMEs will be able to access the state wholesale system, import and
export, set prices and attract foreign investment, but only within a
state-dominated business environment where such activities will remain
heavily regulated, according to various ministers who appeared with Gil.

 

Companies are limited to no more than 100 employees and individuals can only
own a single company, according to a decree law published by the Council of
State this month.

 

Nevertheless, it is a welcome step for many entrepreneurs and most
economists who have long called for the reform.

 

"Cuba is moving towards a mixed economic model, at least in terms of
employment," said Pavel Vidal, a former Cuban central bank economist who
teaches at Colombia's Pontificia Universidad Javeriana in Cali.

 

"With this opening, in a few years the non-state sector will represent more
than 50% of total employment in the economy," Vidal said, adding that "still
much more needs to be done."

 

Cuba's economy, which has stagnated for years, contracted by 10.9% in 2020
and declined another 2% in the six months through June, compared with the
first six months of last year. The economy remains heavily reliant on
tourism and imports.

 

Thousands of people in cities across the Caribbean island took to the
streets on July 11 to protest living conditions in what were the biggest
anti-government demonstrations since the 1959 revolution. Diaz-Canel has
blamed the unrest on the United States, saying protesters were manipulated
by U.S.-orchestrated social media campaigns.

 

The private sector in Cuba has gradually expanded since the 1990s to
encompass more than 600,000 self-employed license holders in many sectors
and includes business owners and their employees, tradespeople and taxi
drivers.

 

The so called non-state sector, including agriculture, provides work for a
third of the 4.9 million officially employed Cubans in the labor force, with
the remainder working for the state.

 

The Thomson Reuters Trust Principles.

 

 

Pfizer, Moderna seen reaping billions from COVID-19 vaccine booster market

(Reuters) - Drugmakers Pfizer Inc, BioNTech and Moderna Inc are expected to
reap billions of dollars from COVID-19 booster shots in a market that could
rival the $6 billion in annual sales for flu vaccines for years to come,
analysts and healthcare investors say.

 

For several months, the companies have said they expect that fully
inoculated people will need an extra dose of their vaccines to maintain
protection over time and to fend off new coronavirus variants.

 

Now a growing list of governments, including Chile, Germany and Israel, have
decided to offer booster doses to older citizens or people with weak immune
systems in the face of the fast-spreading Delta variant.

 

Late on Thursday, the U.S. Food and Drug Administration authorized a booster
dose of vaccines from Pfizer Inc (PFE.N) and Moderna Inc (MRNA.O) for people
with compromised immune systems.

 

 

Pfizer, along with its German partner BioNTech , and Moderna have together
locked up over $60 billion in sales of the shots just in 2021 and 2022. The
agreements include supply of the initial two doses of their vaccines as well
as billions of dollars in potential boosters for wealthy nations.

 

Going forward, analysts have forecast revenue of over $6.6 billion for the
Pfizer/BioNTech shot and $7.6 billion for Moderna in 2023, mostly from
booster sales. They eventually see the annual market settling at around $5
billion or higher, with additional drugmakers competing for those sales.

 

The vaccine makers say that evidence of waning antibody levels in vaccinated
people after six months, as well as an increasing rate of breakthrough
infections in countries hit by the Delta variant, support the need for
booster shots.

 

Some early data suggests that the Moderna vaccine, which delivers a higher
dose at the outset, may be more durable than Pfizer’s shot, but more
research is needed to determine whether that is influenced by the age or
underlying health of the people vaccinated.

 

As a result, it is far from clear how many people will need boosters, and
how often. The profit potential of booster shots may be limited by the
number of competitors who enter the market. In addition, some scientists
question whether there is enough evidence that boosters are needed,
particularly for younger, healthy people. The World Health Organization has
asked governments to hold off on booster shots until more people worldwide
receive their initial doses.

 

"We don't know what the market forces will be," Moderna President Stephen
Hoge said in an interview last week. "At some point, this will become a more
traditional market - we'll look at what are the populations at risk, what
value are we creating, and what are the number of products that serve that
value. That will ultimately impact price."

 

Pfizer declined to comment for the story. During the company’s
second-quarter earnings call, executives said they believe a third dose will
be necessary 6 to 8 months after vaccination, and regularly afterward.

 

A MODEL IN FLU SHOTS

 

If regular COVID-19 boosters are needed among the general population, the
market would most resemble the flu shot business, which distributes more
than 600 million doses per year. Four competitors split the U.S. flu market,
which is the most lucrative and accounts for around half the global revenue,
according to Dave Ross, an executive at CSL's flu vaccine unit Seqirus.

 

Flu vaccination rates in developed countries have settled at around 50% of
the population, and COVID boosters would likely follow a similar pattern if
approved widely, said Atlantic Equities analyst Steve Chesney.

 

Flu shots cost around $18 to $25 a dose, according to U.S. government data
and competition has kept price increases in check, with producers raising
prices 4 or 5 percent in 2021.

 

Pfizer and Moderna may have greater pricing power for their boosters, at
least at the outset, until competitors arrive. Pfizer initially charged
$19.50 per dose for its vaccine in the United States and 19.50 euros for the
European Union, but has already raised those prices 24% and 25%,
respectively, in subsequent supply deals.

 

AstraZeneca Plc (AZN.L) and Johnson & Johnson (JNJ.N) are both gathering
additional data on boosters of their vaccines. Novavax, Curevac, and Sanofi
could also potentially be used as boosters, though their vaccines have yet
to receive any regulatory authorization.

 

"A lot of these firms aren't even in the market yet. I think within a year's
time, all these companies will have booster strategies," said Morningstar
analyst Damien Conover, who covers Pfizer.

 

Mizuho Securities analyst Vamil Divan expects at least 5 players in the
COVID-19 booster market within a few years.

 

There's still a lot of uncertainty around how boosters would be rolled out
in the United States. Still, it is possible or even likely that people will
be boosted with different vaccines than they were originally vaccinated
with. The National Institute of Allergy and Infectious Diseases is already
testing mixed boosting, and other countries that have used so-called mix and
match vaccination have not had problems with that strategy.

 

One factor that could curb prices is if the U.S. government continues paying
for most or all of the shots administered in the country, rather than leave
it in the hands of private health insurers. In that scenario, the government
would still be negotiating prices directly with vaccine makers, and could
use its buying power to stave off price increases.

 

Bijan Salehizadeh, managing director at healthcare investment firm Navimed
Capital, said the U.S. government is likely going to want to keep paying in
order to keep vaccination rates high and prevent new COVID surges,
particularly if a Democratic administration is still in power.

 

"It's going to be paid for until the virus disappears or mutates to be less
virulent," Salehizadeh said.

 

The Thomson Reuters Trust Principles.

 

 

 

Disney's recovery ride hinges on Delta as theme parks swing to profit

(Reuters) - Walt Disney Co's (DIS.N) path to a sustained recovery in its
theme parks business will rest on one question: Can the entertainment giant
keep its parks open for the rest of the year?

 

Disney's chief financial officer, Christine McCarthy, said on Thursday the
company's theme parks were expected to be fully staffed by the end of this
year to cater to the rising demand.

 

Those plans could be upended by the spread of the more infectious Delta
variant of the coronavirus, which has been ravaging Florida, home to
Disney's biggest park, as well as other U.S. states with lower vaccination
rates.

 

"Disney's ability to keep its parks and resorts open is clearly of the
utmost importance to their bottom line," said Joe McCormack, analyst at
Third Bridge.

 

"Whether (parks remain open) will largely be driven by Delta variant."

 

While the success of the company's video-streaming operations cheered others
on Wall Street, some analysts and investors worried about the prospects for
the parks.

 

"It is clear that parks will not return to full capacity for some time," PP
Foresight analyst Paolo Pescatore said.

 

For now, Disney executives struck a confident tone and said demand for its
parks has not wavered.

 

"The primary noise we're seeing right now are really around group or
convention cancellations," Chief Executive Officer Bob Chapek said. "But on
the whole, we see really strong demand for our parks."

 

Disney shares rose 4.7% to $187.69 in premarket trading on Friday, after
upbeat third-quarter results prompted at least six brokerage groups to raise
their price targets on the stock.

 

The virus has also had varying impact on the domestic and international
businesses of theme park operators.

 

Link to graphic on theme park operators swinging to a profit:
https://tmsnrt.rs/3m1lo9Y

 

One big factor weighing against a full recovery is the deterioration of
international air travel, experts said.

 

"That could hold back attendance at parks – particularly international parks
like Paris and Hong Kong that rely on cross-border travel," said Nicholas
Hyett, analyst at Hargreaves Lansdown.

 

Disney, Comcast (CMCSA.O) and Six Flags (SIX.N) have been upbeat about their
domestic businesses but offered a cautious view on their international
operations, which depend heavily on tourist inflows.

 

Airbnb Inc (ABNB.O) and Southwest Airlines (LUV.N) both warned this week
that the spreading of the delta variant could hit their operations. read
more

 

The Thomson Reuters Trust Principles.

 

 

 

Dollar retreats as consumer sentiment dives

(Reuters) - The U.S. dollar fell to a one-week low against a basket of
currencies on Friday, after a survey showed U.S. consumer sentiment dropped
sharply in early August, raising worries of a dent in economic activity.

 

The University of Michigan said its preliminary consumer sentiment index
fell to 70.2 in the first half of this month from a final reading of 81.2 in
July. That was the lowest level since 2011 and one of the six largest drops
in the past 50 years of the survey. read more

 

Investors this week have been treated to a mixed bag of data. While U.S.
producer prices data out Thursday showed surging prices, bolstering the case
for the Federal Reserve removing some of its stimulus, it followed U.S.
consumer price data on Wednesday, which indicated inflation may be peaking,
potentially giving the Fed room to remain accommodative for longer. read
more

 

"The prime driver this week was this idea that a deceleration in inflation
pressures will reduce the impetus for an earlier tapering of Federal Reserve
asset purchases," said Karl Schamotta, chief market strategist at Cambridge
Global Payments in Toronto.

 

"What's happened here is traders have moved their expectation for a tapering
announcement from September toward November, perhaps even December,"
Schamotta said.

 

The dollar index , which measures the greenback against a basket of six
rivals, was 0.5% lower at 92.521, its lowest since Aug 6. For the week the
index was down 0.3%.

 

Traders continue to look toward the Fed's central banking conference in
Jackson Hole, Wyoming, later this month, for clues to the Fed's next move.

 

"(Federal Reserve Chair Jerome) Powell may use the Jackson Hole platform to
provide further clarity on the sequencing of the Fed’s monetary tightening
operations - making it clear that a tapering announcement, when it comes,
will not act as a temporal anchor for changes in the Fed funds rate," said
Schamotta.

 

"The goal is to tame a possible taper tantrum before it gets started," he
said.

 

Sterling was 0.45% higher against the broadly weaker dollar, but remained on
pace for a second straight week of modest declines as investors look for
fresh catalysts for the British currency's next move after Britain's growth
figures for the second quarter came in as expected.

 

Elsewhere, bitcoin climbed 4.78% to $46,571.09, nearing Wednesday's
three-month peak of $46,787, while Ethereum rose 6.03% to $3,228.33.

 

The Thomson Reuters Trust Principles.

 

 

 

Disney helps lift Dow, S&P 500 to records

(Reuters) - The Dow and the S&P 500 inched higher to touch intraday records
on Friday and were poised for a second straight week of gains, buoyed by
gains in Walt Disney, although a drop in consumer sentiment kept gains in
check.

 

Walt Disney (DIS.N) climbed 1.43% as one of the biggest boosts to both the
Dow Industrials and benchmark S&P 500 after its profit topped market
expectations as its streaming services added more customers than expected
and pandemic-hit U.S. theme parks returned to profitability. read more

 

Gains were muted, however, after the University of Michigan said its
preliminary consumer sentiment index fell to 70.2, its lowest level in a
decade, in the first half of this month from a final reading of 81.2 in
July, suggesting the Delta variant of the coronavirus was impacting
consumers. read more

 

"The market appears to be in wait-and-see mode at new highs," said Andre
Bakhos, managing director at New Vines Capital LLC in Bernardsville, New
Jersey.

 

"We do still have a lot of variables such as the Delta variant ... but they
are not hitting the tape yet."

 

The report sent the yield on the 10-year U.S. Treasury note lower and in
turn helped lift mega-cap growth names, such as Microsoft Corp (MSFT.O), up
0.72% while online retail giant Amazon (AMZN.O) slipped 0.51%.

 

The Dow Jones Industrial Average (.DJI) rose 7.4 points, or 0.02%, to
35,507.25, the S&P 500 (.SPX) gained 3.76 points, or 0.08%, to 4,464.59 and
the Nasdaq Composite (.IXIC) dropped 1.10 points, or 0.01%, to 14,815.16.

 

U.S. stocks have managed to slowly grind to new highs over the past few
sessions as investor confidence in economic recovery was bolstered by a
strong earnings season, the passage of a large infrastructure bill and data
showing inflation may be increasing at a slower pace than feared.

 

In the wake of new data from earlier this week that showed consumer price
increases slowed in July, while producer prices posted their biggest annual
rise in more than a decade, investors are now looking ahead to the meeting
of central bankers in Jackson Hole, Wyoming, later this month for cues on
policy.

 

In recent days, several Fed officials said it is nearly time for the central
bank to begin pulling back on its monetary support, including the tapering
of its asset purchases. read more

 

DoorDash Inc (DASH.N) rose 1.93%, reversing earlier losses after the
food-delivery firm's loss widened more than expected in the second quarter.
read more

 

Airbnb Inc (ABNB.O) slipped 0.12% after it flagged a hit to its
current-quarter bookings by the Delta variant and a slowing pace of U.S.
vaccination.

 

Declining issues outnumbered advancing ones on the NYSE by a 1.01-to-1
ratio; on Nasdaq, a 1.73-to-1 ratio favored decliners.

 

The S&P 500 posted 55 new 52-week highs and no new lows; the Nasdaq
Composite recorded 81 new highs and 128 new lows.

 

The Thomson Reuters Trust Principles.

 

 

Namibia: !kharoxas to Benefit From Solar Project

THE community of farm !Kharoxas recently became the beneficiary of a solar
power plant that was set up by the Namibia University of Science and
Technology (Nust) in partnership with the Technical University of Munich
(TUM) in Germany.

 

The power plant is a living laboratory research centre and is part of the
Sustainable Energies, Entrepreneurship and Development (Seed) project, which
was commissioned at the TUM in March 2020.

 

The aim is to offer higher education at the intersection of sustainable
energy and entrepreneurship.

 

According to James Katende, a professor at Nust, !Kharoxas was an ideal
location because available funds could only cover a small plant.

"We chose a location with a few homes, but with the potential for
agricultural and other entrepreneurial activities," Katende said last week
at the commission of the power plant at !Kharoxas.

 

He said the aim of the laboratory is to exploit Namibia's abundant renewable
energy resources, such as solar, wind and biomass.

 

"The living lab will be a bedrock for teaching and research on concepts of
sustainable energy and entrepreneurship. Hence curricula and research theses
incorporating the activities of the living lab are expected to happen as
soon as possible," he added.

 

The Namibian was informed that constructng the power plant as well as
replacing a borehole pump in the area cost about N$894 000.

 

The professor added that the power plant should help fast-forward growth in
the community predicting that by 2024 there will be a complete
socio-economic transformation at !Kharoxas.

"We had to provide energy to remote communities which have no access to the
grid so that they can start entrepreneurial activities which will generate
funds and therefore raise the standard of living in these communities," he
noted.

 

!Kharoxas is a settlement about seven kilometers from Groot Aub and
according to Katende, its residents showed a lot of enthusiasm and interest
in the project.

 

The power plant, known as the NUST SEED Living Lab is a 20-killowat solar
panel that was designed and specified by the NUST team and installed by
Namibian Engineering Corporation.

 

Niko Bruckner, chief executive officer of the corporation gave a brief
explanation of how the power plant will work.

 

"All the energy that is generated from the sun is converted into electricity
that is stored in batteries and will be distributed to the communities once
it has been connected," Bruckner explained.

 

He further told the community that while the solar plant is very expensive,
it is a good investment as solar power is a sustainable energy source.

 

The solar panel has been built in such a way that the electronics and the
battery can be extended as required in the future.

 

The project is being funded by the Germany Academic Exchange for five years
from 2020 to 2024.

 

The TUM SEED coordinates eight partner universities from the Global South
collaborating on sustainable energies and entrepreneurship skills
development at postgraduate level. NUST is one of those universities engaged
in the project.

 

Chief Juliane Gawa!nas of the /Khomanin Traditional Authority, who was
present at the commission, extended her gratitude to NUST and TUM for
choosing !Kharoxas as the ideal location for the project.

 

"We are so grateful for looking at us and setting up your project here. You
should, however, also go to other communities in Namibia and look at them,
and see where you can assist them as well," she said.-Namibian.

 

 

 

Kenya: Puzzle of SGR Builder Set to Pocket Sh60m Per Kilometre for Murram
Road

Kenyans will pay a Chinese firm that built the Standard Gauge Railway Sh60
million to lay murram on each kilometre of a road linking Lamu and Garissa
through Ijara, a unit cost higher than that for rural roads and even
tarmacked ones.

 

State-owned China Communications Construction Company (CCCC), in a joint
venture with engineering firm Territorial Works Ltd, was awarded a Sh27.29
billion tender by the Kenya National Highways Authority (Kenha) in April to
upgrade the Lamu-Ijara-Garissa road to an all-weather gravel road.

 

The high cost of the project, which is meant to support the Lapsset
corridor, comes as concerns rise about the high cost of road projects. And
it has earned Transport Cabinet Secretary James Macharia a date with the
Senate's Committee on Roads and Transportation.

Nandi Senator Samson Cherarkey wants Mr Macharia to explain how the tender
for the project, to be completed in 2023, was awarded.

 

Lawmakers were to speak to the CS via video link on Thursday morning but
that did not happen, and Kiambu Senator Kimani Wamatangi, who chairs the
committee, did not respond to the Nation's queries on why the sitting
failed.

 

The murram road networks will cover 453km, with the main stretch from Lamu
to Garissa through Ijara covering 257km, the Hindi-Bodhei-Basuba-Kiunga
section 113km and the Ijara-Sangailu-Hulugho part 83km.

 

Open up region

 

Once completed, the roads will open up the volatile region by facilitating
the transport of goods between Lamu, southern Ethiopia and Somalia and
improving security.

But the steep cost of the project is puzzling, given that there will be no
high land compensation costs and huge provisions for relocating critical
infrastructure utilities, factors that the ministry usually blames for
bloated costs of roads projects.

 

The road is among those that the Treasury expects the State Department of
Infrastructure to give priority to in the current financial year, even as
high building and maintenance costs for such roads eat up ever larger chunks
of taxpayer money.

 

"The Department will prioritise the completion of Nairobi Expressway, James
Gichuru-Rironi Road, Construction of Mombasa Port Area Road Development
Project, upgrading of Lamu-Ijara-Garissa road to all-weather standard, Mau
Mau roads, Kenol-Sagana-Marua Project, completion of Nairobi Western
Bypass," Treasury said in the budget statement.

 

But pressure from international lenders has forced the government to roll
out a land value index. It is expected to cut exorbitant land compensation
claims by landowners who make way for government projects and significantly
reduce costs.

 

The 2019 Land Valuation Amendment Act provides for the development of a land
value index for all counties, but only six - Nakuru, Narok, Kericho,
Mombasa, Bomet and Kisumu - have developed such indices.

 

"The development of a valuation index which is reviewed regularly will
inform the valid market price when the government acquires land for its
development projects," the World Bank said in June after wiring its latest
Sh80.9 billion loan to Nairobi.

 

"It will also mitigate the risk that local communities are exploited, as it
allows communities to know the value of their properties, a strongly
pro-poor measure."

 

The government has also adopted public-private partnerships for mega road
projects, alleviating pressure on taxpayers, at least in the short-term.

 

These include the Sh59 billion Nairobi Expressway and the Sh160 billion
Rironi-Mau Summit dual carriageway, which are being built in partnership
with private entities, with costs to be recovered over time.-Nation.

 

 

 

Uganda: Govt, SMEs in Discussions to Save Small Businesses

Ministry of Finance and Small and Medium Enterprises (SMEs) are in
discussions to come up with a Shs200b stimulus package that will be key in
recovery of more than 300,000 small businesses.

 

Preliminary discussions, according to sources privy to the deliberations,
are being held between the Ministry of Finance and the leadership of the
Federation of Small and Medium Enterprises (FSME).

 

It has already been determined that at least Shs200b will be needed as a
stimulus package to lift about 300,000 SMEs.

 

Mr John Walugembe, the Federation of Small and Medium Enterprises executive
director, confirmed the discussions and during a status briefing organized
for small and medium enterprises, he said noted that stimulus package will
only benefit small businesses.

"This is because government already [has programmes that target] micro
businesses through the microfinance support centre. It [also has
arrangements that target] medium sized businesses through the Uganda
Development Bank," he said, noting that micro and medium sized enterprises
will not benefit from the Shs200b.

 

Mr Walugembe also noted that Uganda currently has about 1.5 million micro,
small and medium sized enterprises, the bulk of which are micro businesses.

 

Small businesses make up only 20 per cent, representing about 300,000
enterprises. A small business is defined as one that employs up to 50 people
and makes between Shs10m to Shs100m in annual revenue.

 

Mr Walugembe also revealed that the stimulus package will primarily offer
low interest credit and not grants, which will be disbursed through
participating financial institutions.

 

The interest rate of the stimulus package is expected not to be exceed 12
per cent.

 

However, Dr Fred Muhumuza, an economist and a Makerere University lecturer,
said the package is unlikely to reach intended targets, noting that a number
of small businesses have no access to financial institutions, through which
the programme is expected to be implemented.

 

"That is when government begins to lose the targeting. How many small
businesses go to financial institutions? That is why the Agricultural Credit
Facility and UDB have struggled to attain their targets. It will become
complicated to identify and appraise which businesses need assistance," he
said. Asked about the effect of the informal nature of small businesses on
money channel through commercial banks, Mr Walugembe said that the
Federation had asked government to build capacity of the businesses to
formalise and attain required prerequisites in order to benefit from the
stimulus.

 

Mr Walugembe also told medium sized businesses during the status update that
Uganda Development Bank was in the process of refining its portfolio to
ensure that they address the needs of their businesses.

 

Get involved

 

According to Mr Walugembe, small businesses must be involved in determining
how the stimulus is designed to benefit them by sending through their
suggestions.

 

The Ministry of Finance is expected to announce itself on the final position
and modalities of how the stimulus package will work.-Monitor.

 

 

 

 

 


 


 


 

 

 

 


 

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.

 


 

 


(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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