Major International Business Headlines Brief::: 03 December 2021

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Major International Business Headlines Brief::: 03 December 2021 

 


 

 


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

 


 

 


ü  China app giant Didi plans US stock market exit in move to Hong Kong

ü  US creditors can now DM debtors on social media

ü  Ride hailing app Grab falls in $40bn market debut

ü  Countries reach 'landmark deal' to cut trade costs

ü  Retailers make shocking petrol profit, says RAC

ü  Covid loan anti-fraud checks inadequate, says watchdog

ü  Banks fined over collusion in currency trading

ü  Covid: Anglo American to introduce mandatory vaccinations

ü  UK plays down Brexit link in US steel tariff row

ü  U.S. job growth likely picked up; unemployment rate seen at 20-month low

ü  Softbank Group shares slide 3% after Didi, Arm, Grab triple setback

ü  Citigroup applies for China securities license - WSJ

ü  Musk exercises more options, sells Tesla shares worth $1.01 bln

ü  Kenya: Search Resumes for 8 Trapped Miners At Bondo Goldmine

ü  Tanzania: New Forum to Boost Proper Internet Use Among Youth

ü  Nigeria: Surge in Cooking Gas Prices in Nigeria Worries Suppliers, Environmentalists

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

China app giant Didi plans US stock market exit in move to Hong Kong

Didi's IPO was the biggest listing in the US by a Chinese company since Alibaba's debut in 2014

Chinese ride-hailing giant Didi Global has announced plans to take its shares off the New York Stock Exchange (NYSE) and move its listing to Hong Kong.

 

The firm has come under intense pressure since its US debut in July.

 

Within days of the initial public offering (IPO) Beijing announced a crackdown on technology companies listing overseas.

 

Earlier on Thursday the US market watchdog unveiled tough new rules for Chinese firms that list in America.

 

"Following careful research, the company will immediately start delisting on the New York stock exchange and start preparations for listing in Hong Kong," the company said on its account on Weibo, China's Twitter-like microblogging network.

 

In a separate English language statement Didi said its board had approved the move, adding: "The company will organise a shareholders meeting to vote on the above matter at an appropriate time in the future, following necessary procedures."

 

At the end of June, Didi - China's answer to Uber - raised $4.4bn (£3.3bn) in its New York IPO.

 

However, trading was muted on the first day as investors weighed concerns over tensions between Washington and Beijing, and issues raised by US regulators over some Chinese firms' financial reports.

 

Within days China's internet regulator ordered online stores not to offer Didi's app, saying it illegally collected users' personal data.

 

The Cyberspace Administration of China (CAC) said it was investigating the firm to protect "national security and the public interest".

 

In response Didi said in a statement: "The company will strive to rectify any problems, improve its risk prevention awareness and technological capabilities, protect users' privacy and data security, and continue to provide secure and convenient services to its users."

 

Didi also warned that the removal of its app from Chinese stores would have an adverse impact on its revenues.

 

Like many other Chinese technology companies Didi has also come under pressure from regulators in the US and Europe.

 

On Thursday, the US Securities and Exchange Commission said it had finalised rules that would mean US-listed foreign companies can be delisted if their auditors do not comply with requests for information from regulators.

 

The law was passed in 2020 after Chinese regulators repeatedly denied requests from US authorities to inspect the the accounts of Chinese firms that list and trade in the US.

 

Meanwhile in August, a company source told the BBC that it had halted plans to launch in the UK and continental Europe.

 

It had been planning to roll out services in Western Europe, including major British cities.

 

Japan's SoftBank is Didi's largest single investor with a stake of more than 20%. It is also backed by Chinese technology giants Alibaba and Tencent.

 

Uber also owns a stake in the firm as a result of Didi taking over Uber China in 2016.

 

Didi Global shares have lost more than 40% of their value since their US market debut.

 

>From Alibaba to Tencent, Chinese technology companies have been under scrutiny at home and abroad.

 

The country's ride-hailing giant Didi has been at odds with Chinese regulators for months.

 

It shocked investors when Beijing removed Didi from app stores just a few days after the firm went public on Wall Street in late June, accusing it of violating data security rule.

 

Beijing has also announced rules to protect the rights of the millions of ride-hailing drivers, in a move aimed to underpin the sector's growth.

 

But Chinese companies have also been closely watched by American regulators.

 

Didi said it is preparing to list in Hong Kong, and shareholders of its US listed shares will be able to convert their holdings to those on another stock exchange.

 

The company is also preparing to relaunch its apps in China by the end of the year.-BBC

 

 

 

US creditors can now DM debtors on social media

Debt collectors are now allowed to contact Americans on social media and by text message, according to new rules enacted by a US agency this week.

 

The rule from the Consumer Financial Protection Bureau (CFPB) opens the door for creditors to slide into the DMs of millions of Americans who have loans.

 

Critics say the messages could be lost online or lead to invasions of privacy and a proliferation of new scams.

 

Advocates say the change is a simple update to rules created in the 1970s.

 

The change, which was approved by the CFPB last year under the Trump administration, requires creditors to contact defaulters privately - meaning they can send direct messages but not post on your public-facing page.

 

Consumers can opt out of these messages, but creditors do not need permission to contact people. There are no rules for how many messages they are allowed to send.

 

Lenders had argued that the change was needed, given that the Fair Debt Collection Practices Act, which regulates the industry, became law in 1977 - long before the creation of social media and cell phone texts.

 

The rule also creates a new limit for phone calls. Seven calls can be made each week for any particular debt, but people with multiple debts may still be called dozen of times each week.

 

Debt collectors are also limited from contacting any consumer by phone within one week of speaking to them about a specific debt.

 

Mark Neeb, CEO of the debt collector trade group ACA International, said in a statement that the change represents "a small step forward in modernising communications with consumers".

 

Critics say the option creates new ways for communications to go amiss, especially given that some people lack constant access to the internet. Messages about overdue bills, though private, could still be sent to the wrong person.

 

Around one-third of Americans who have had a credit report have a debt that has been sent to a collection agency, according to CBS News, meaning the rule could affects tens of millions of people.-BBC

 

 

 

Ride hailing app Grab falls in $40bn market debut

Grab - the Uber of South East Asia - has made its stock market debut on New York's Nasdaq trading platform.

 

Shares initially rose in the Singapore-based operator of the ride-hailing and payments app, before falling sharply.

 

The share sale valued Grab at more than $40bn (£30bn), making it the largest ever US listing by a South East Asian firm.

 

Instead of a conventional share sale, Grab went public using a shell company designed to make the process cheaper.

 

Using a special purpose acquisition company (Spac) has become an increasingly popular strategy with start-ups, as it offers more flexibility around voting rights, as well as lower costs.

 

Minutes into their market debut, the shares rose by 21%, but ended the day more than 20% below their launch value.

 

Grab's business is growing, but the firm is yet to make a profit and it doesn't expect to do so until 2023.

 

However, Grab chief executive Anthony Tan told the BBC the firm's profit margins were "industry leading" and that he was focused on growing the business in a cost-disciplined way.

 

"You look at our food delivery business, a majority of our markets have already broken even, so we know how to get there as a clear path of profitability," he said.

 

To address criticism that it is avoiding public scrutiny over its financial performance by choosing a Spac listing, Grab has reported its earnings for the last three quarters even though it didn't need to.

 

The Uber killer that became a financial super-app

"Grab needs to demonstrate to investors its growth potential," said Professor Howard Yu of IMD Business school. "This is why Grab is trying hard to enter finance because that is one sector really high in terms of profitability."

 

Grab's existing investors include Japan's Softbank, China's Didi and Uber.

 

The flotation is being seen as a test for South East Asian financial technology and could encourage other start-ups in the region - like Grab's Indonesian rival Gojek which merged with Tokopedia - to follow suit.

 

What is Grab?

Less than a decade ago, Grab was a simple taxi company, founded by Anthony Tan and Tan Hooi Ling in Malaysia.

 

Now it is one of the most popular apps in Asia, offering rides, food delivery and now, financial services, including loans, insurance, payments and investments - all accessed through a mobile phone app.

 

In 2018, it pushed Uber out of South East Asia and operates in 465 cities across eight countries.

 

Grab has become a "powerful flywheel combining ride-hailing, delivery and payments" that has "demonstrated durable growth even during the pandemic and is playing a foundational role in the digitisation of South East Asia", said Brad Gerstner, the chief executive of its Spac partner Altimeter.

 

What are Spacs?

Spacs, which became a major story in the US stock market at the start of this year, are shell companies that are set up with the sole purpose of merging with a private firm to take it public. They are also known as "blank cheque companies".

 

For start-ups like Grab, it is a quicker and cheaper way to list on a stock market, with fewer regulatory hurdles.

 

A conventional initial public offering (IPO) costs about $1m, according to Michael Lints, partner at Golden Gate Ventures. But with a Spac, a company can go public for as little as half that amount.

 

"From a start-up's perspective, Spac is an extreme arrangement because it is even more founder-friendly than a traditional IPO," said Professor Yu. "Even after the company is listed, the voting rights can be geared to favour the founder and they remain in absolute control."

 

Grab is a case in point: Mr Tan has secured 60.4% of the voting rights even though he owns just 2.2% of the company's ordinary shares. This arrangement could have come under scrutiny if Grab had listed in the conventional way.

 

For investors though, Spacs can be more risky and they have not been a mainstream investment instrument until fairly recently.

 

"They were viewed as a shady way of getting a company listed," said Mr Lints. However, when brand name companies like DraftKings, a fantasy sports and betting operator, chose to go public with a Spac in 2019, the market took notice.

 

Why have Spacs taken off?

Thanks to the Covid-19 pandemic, trillions of dollars of economic stimulus have been poured into the global economy, flooding the market with cheap money and investors looking for new opportunities.

 

After a record number of Spac listings in the first three months of this year, however, the US stock market regulator - the Securities and Exchange Commission (SEC) - issued guidance on Spacs. Its new accounting rules have resulted in the number of Spac IPOs falling sharply.

 

"Investors started to realise that some of them weren't even generating revenues," said Mr Lints, adding that there are signs people remain more cautious about Spacs.

 

But as the regulatory filing backlog clears, Spacs are making a comeback. Spac mergers of WeWork, social networking app Nextdoor and Grab have all been approved in the last few months.

 

The explosive growth of Spacs in the US is also spreading to the rest of the world, with the stock exchanges in London and Singapore allowing them and Hong Kong considering it.

 

"With a lot of appetite to invest, other countries are trying to relax regulations to encourage Spac listings so that they can bring these high-flying tech companies to list in their local markets," said Prof Yu. "It's almost like a race to the bottom, just like the taxation regime."-BBC

 

 

Countries reach 'landmark deal' to cut trade costs

Members of the World Trade Organization (WTO) have agreed a landmark deal which could cut trade costs by £113bn a year.

 

Some 67 members agreed to cut red tape around licensing and qualifications.

 

The signatories, which include the UK, United States, EU and China, are a minority of the WTO's 164 members, but represent 90% of all services trade.

 

Banking, information technology, telecoms, architecture and engineering are among the service sectors which could benefit most from the deal.

 

Anne-Marie Trevelyan, the UK's International Trade Secretary, said the UK stands to gain as it is the world's second largest services exporter.

 

She said the deal showed "exactly the kind of cooperation we want to see at the WTO and demonstrates it can deliver trade rules fit for the 21st Century".

 

What is the World Trade Organization?

International policy forum the Organisation for Economic Co-operation and Development (OECD) has estimated that implementing looser regulations in G20 countries - the world's 20 top economies - could reduce trade costs by up to 6%.

 

The Department for International Trade said the new rules would make it easier for businesses, in particular small and medium-sized firms, to "navigate foreign markets and obtain authorisation to export overseas".

 

"British businesses consistently cite complex administrative procedures as barriers to accessing international markets," the government said.

 

"Once the new rules are in force, businesses can expect licensing applications to be processed in a timely manner, acceptance of electronic copies of qualifications by competent authorities, and an end to unreasonable and hidden fees."

 

'Meaningful achievement'

The government said the biggest savings on trade were likely to be in finance and tech, helping "ensure London retains its position as Europe's leading financial centre".

 

Miles Celic, chief executive of financial sector body The City UK, said the agreement was "an essential step towards removing the types of trade barriers most often experienced by services exporters".

 

Meanwhile, George Riddell, EY director of trade strategy, said the deal was a "meaningful achievement that has real commercial value for services providers all around the world".

 

The European Services Forum (ESF), which represents the interests of the European service sectors, welcomed the agreement announced in Geneva, saying it had called for such regulation for more than 20 years.

 

The WTO, which administers a system of rules governing global trade, aims to bring the new rules into force in 2023.

 

The most significant thing about this agreement may be that it has actually happened.

 

It's the first negotiated agreement on services at the WTO in a quarter of a century. So, it's of great symbolic importance.

 

Business groups have warmly welcomed moves to harmonise regulations and make it easier to sell services around the world. But we'll have to wait and see how much easier it actually becomes.

 

The OECD estimates that implementing looser regulations in G20 countries could cut $150bn (£117bn) every year from the cost of services trade. But the theory has to be put into practice.

 

"WTO agreements may not always make it into the headlines, they may not sound sexy," admitted the organisation's director general Ngozi Okonjo-Iweala.

 

But, she argued, this one shows they can make a real difference.

 

The WTO has struggled to make an impact in recent years when operating by consensus, which means that all member countries have to agree.

 

This agreement - involving 67 countries representing 90% of global services trade - provides a model for "coalitions of the willing" to make progress on other issues, such as e-commerce and environmental concerns, in the future.-BBC

 

 

 

Retailers make shocking petrol profit, says RAC

Retailers are continuing to put up fuel prices when they should reduce them in line with savings in wholesale oil prices, the RAC motoring services organisation has claimed.

 

In response to concerns about the Omicron variant, oil prices fell by around $10 a barrel last week.

 

But this reduced wholesale fuel price has not been reflected at the pumps.

 

Retailers added on average another 3.1p to a litre of unleaded petrol and 2.7p to diesel in November.

 

The RAC said this hike in petrol prices was "completely unjustified", with larger retailers making a "shocking" profit.

 

In particular, the RAC pointed the finger at supermarket chains who are major fuel retailers, such as Asda, Sainsbury's, Tesco and Morrisons, saying they should have reduced prices, but had instead increased them "unnecessarily".

 

"Since Covid they've been far more reluctant to pass on any savings, even though the frequency with which they buy means they are in a position to pass on any savings in the wholesale price to drivers far more quickly," RAC fuel spokesperson Simon Williams told the BBC.

 

"It would be much fairer if retailers mirrored wholesale prices more closely on a daily or weekly basis."

 

The BBC has approached Asda, Sainsbury's, Tesco and Morrisons for comment.

 

The RAC has urged the government to intervene and said the chancellor's fuel duty freeze last month is not enough.

 

"The government should ask the biggest retailers to explain why they're charging such high prices for fuel when wholesale prices have dropped," Mr Williams added.

 

A government spokesperson said: "Fuel prices are increasing in countries across the world and this is not an issue unique to the UK.

 

"We've provided £4.2bn of support to help people with the cost of living, including effectively cutting taxes for workers on Universal Credit, providing £500m of targeted support for the most vulnerable families and freezing fuel duty for the twelfth year in a row."

 

Analysis by the RAC found that despite wholesale costs having fallen by 7p from the middle of the month, retailers continued to put prices up, with the average cost of a litre of unleaded petrol ending the month at 147.28p and diesel up to 150.64p.

 

Prices for both fuels peaked at record highs on 20 November and 21 November respectively - diesel reaching 151.1p per litre and petrol at 147.72p.

 

The key factor affecting petrol is the wholesale oil market, meaning any reduction in the oil price should result in buyers paying less at the pumps.

 

While the price of petrol is linked to the wholesale price of oil, it is competitively driven. That means the cost motorists are charged is not directly linked to crude. Instead, suppliers control the prices they sell petrol at.

 

Mr Williams explained that the current margins big retailers are making have gone up as high as 20p a litre, which is "unheard of when everyone is driving".

 

"Sadly, our data shows all too clearly that drivers are being taken for a ride by retailers at the moment," he said.

 

However, on Tuesday, motoring group the AA said that the UK's average petrol prices did begin to show the first "significant fall" since November 2020.

 

Having peaked above 54.5p a litre in the second week of November, the petrol cost to retailers was down to 49p at the start of last week and yesterday dropped below 43p a litre.

 

But the RAC said it was not enough of a fall to reflect the plummet in wholesale prices.

 

The AA welcomed the consumer petrol price fall, but criticised the fact it had taken so much longer to drop in relation to falling wholesale prices.

 

Luke Bosdet, the AA's fuel price spokesman said that previously, the market would "wait until Asda or Morrisons announced a price cut before starting to move".

 

"Without that initial kick, pump prices have stagnated, and that is a potentially worrying development if it sets the pattern for the future," he said.

 

"In basic pounds, shillings and pence, if a supermarket makes a big deal about discounts of £2 or £3 off the shopping bill, but grabs back £2 to £3 per tank by not passing on savings at the pump, the consumer needs to factor that in."

 

The Petrol Retailers Association (PRA) represents independently-owned forecourts that collectively account for around two thirds of the UK's forecourts.

 

Because its members buy fuel less frequently than larger supermarkets, it told the BBC that reductions in wholesale prices can take some days to filter through to the pump price.

 

"Electricity prices, business rates, labour costs have all risen and these need to be paid for if your local petrol station is to remain in business," said Gordon Balmer, executive director of the PRA.

 

He added that fuel retailers have been hit by the "double whammy" of reduced sales and rising costs.

 

"Our members continually monitor prices to ensure that they remain competitive with their industry counterparts and continue to provide good value for money."-BBC

 

 

Covid loan anti-fraud checks inadequate, says watchdog

The government failed to put adequate measures in place to prevent fraudsters stealing billions through its Bounce Back Loan scheme to businesses, the National Audit Office (NAO) has said.

 

Counter-fraud activity was "implemented too slowly", which resulted in "high levels of estimated fraud", it said.

 

It added the Department for Business estimated fraudulent loans were worth £4.9bn, 11% of the total, as of March.

 

The government said it would "not tolerate" people defrauding taxpayers.

 

The Bounce Bank Loan scheme was set up in April 2020 with the aim of keeping afloat small firms struggling due to the coronavirus pandemic.

 

A total of 1.5 million loans worth £47bn were issued through the initiative, after about a quarter of UK businesses applied.

 

'My name was used to steal a government Covid loan'

Ministers were warned of Covid loans fraud risk

In its report, the NAO said the government estimated more than a third of loans, worth £17bn, may never be repaid due to both fraudulent activity and legitimate borrowers defaulting.

 

As of 30 September, figures from the state-owned British Business Bank, which supervises the scheme, showed £2bn worth of loans had been repaid and £1.3bn had been defaulted on. The bank said about 7% of all loans were at least one month in arrears.

 

But the spending watchdog said predicted losses through both fraud and businesses being unable to pay were "highly uncertain".

 

Gareth Davies, the head of the NAO, said: "The true level of fraud will become clearer over time."

 

Mr Davies said the government prioritised loans to small businesses quickly but "failed" to put adequate fraud prevention measures in place.

 

"It is clear government needs to improve on its identification, quantification and recovery of fraudulent loans within the scheme," he added.

 

'High risk of fraud'

Banks, building societies and peer-to-peer lenders were accredited by the British Business Bank to provide firms with 100% government-backed finance worth up to £50,000, or a maximum of 25% of annual turnover.

 

The NAO said the scheme had "limited verification, and no credit checks on borrowers, which made it vulnerable to fraud and losses".

 

Labour MP Meg Hillier, chair of the public accounts committee, said the figures made for "sobering reading".

 

"Government has tried to impose some counter fraud measures but it's too little, too late," she added. "It's now focussing on recovering money from organised crime, yet many of the smaller scale fraudsters will have slipped through its fingers."

 

In May 2020, the British Business Bank warned the government its flagship loan scheme was at "very high risk of fraud" from organised crime.

 

A BBC investigation also revealed how criminals were setting up fake firms to get loans worth tens of thousands of pounds.

 

In its report, the NAO said 13 additional counter-fraud measures had been deployed to tackle the issue, but added "most came too late to prevent fraud and were focused instead on detection".

 

Measures to identify duplicate applications were introduced in June 2020, and checks on director changes were introduced in July 2020.

 

"The duplicate application check was designed to prevent fraud, but was implemented after 61% of the loans by value had been made. All other counter-fraud activities began in, or after, September 2020," the NAO added.

 

It said that the National Investigation Service had received more than 2,100 intelligence reports of fraud by October 2021, but it only had the capacity to pursue a maximum of 50 cases per year.

 

The Department for Business has set a target of recovering at least £6m of fraudulent loans over three years, and so far the agency's work has resulted in 43 arrests and more than £3m in recoveries.

 

A statement from the Department for Business said it was "continuing to crack down on Covid-19 fraud and will not tolerate those that seek to defraud the British taxpayer".

 

"We are pleased to see the National Audit Office recognise that our response to serious fraud has been strengthened since the scheme was first introduced," it added.

 

"The government support schemes have provided a lifeline to millions of businesses across the UK - helping them survive the pandemic and protecting millions of jobs."

 

The figures on fraud are eye watering - but should come as no real surprise. Why? Well because we warned about exactly this last year.

 

Working with an undercover investigator we learned that criminal gangs were exploiting the system. They stole the identities of real people, set up fake companies and claimed the maximum £50,000.

 

Back then, I'll call him "Mike", said the system was wide open to fraud, something confirmed by the NAO today. "Mike" told us the gangs saw Bounce Back Loans as "free money" and that the tax payer stood to "lose billions". Now we know officially it could be as much as £4.9bn.

 

The government said it had robust anti-fraud measures. A unit I had never heard of, the National Investigation Service would aggressively pursue fraudsters.

 

So I went on a "job" with NATIS, meeting up with the team outside a police station in the West Midlands, in the snow, before the sun was even up. A knock on the door of a flat on an estate led to a man being taken into custody. It all seemed very efficient.

 

Now we learn that NATIS received more than 2,000 intelligence reports by October 2021 - but only has the capacity to work on 50 cases per year.

 

And there is an elephant in the room here. And that's the vast majority of legitimate firms who took out loans in good faith. Who, through no fault of their own now find they can't afford to pay them back.

 

The NAO says a hundred thousand are already in arrears. One campaigner told me he expected a "tidal wave" of firms going bust and defaulting in the new year.

 

As he said: "How can you pay back a Bounce Back Loan, when you haven't bounced back?"-BBC

 

 

 

Banks fined over collusion in currency trading

Banks including Barclays, RBS and HSBC have been fined €344m (£293m) by the European Commission for colluding in the trading of foreign currencies.

 

It discovered that traders acting on behalf of five banks exchanged sensitive information through an online chatroom called Sterling Lads.

 

This allowed these traders to make informed decisions on when to buy and sell currencies.

 

The commission said that this was "collusive behaviour".

 

It added that it "undermined the integrity of the financial sector at the expense of the European economy and consumers".

 

As well as Barclays, RBS and HSBC, the commission also fined UBS as well as Credit Suisse.

 

Its investigation focused on the trading of the G10 currencies, which include the British pound - or sterling, as well as the euro, US dollar, Japanese yen and the Swiss franc.

 

When companies exchange large amounts of different currencies, they usually do so through a foreign exchange, or "Forex", trader which is acting on behalf of a bank.

 

Their customers include asset managers, pension funds, major companies and other banks.

 

The investigation found that some traders working for the five banks shared their plans and "occasionally coordinated their trading strategies" through the Sterling Lads chatroom.

 

Sometimes these workers would co-ordinate, using a practice known as "standing down", where some would temporarily stop trading to avoid interfering with another trader.

 

"These information exchanges enabled the traders to make informed market decisions on whether and when to sell or buy the currencies they had in their portfolios, as opposed to a situation where traders acting independently from each other take an inherent risk in taking these decisions," the commission said.

 

EU Competition Commissioner Margrethe Vestager said the decision to fine the banks sent "a clear message that the commission remains committed to ensure a sound and competitive financial sector that is essential for investment and growth".

 

UBS was granted immunity for revealing the existence of the cartel, therefore avoiding a penalty of €94m.

 

Barclays, RBS and HSBC were fined a total €261m which includes reductions for cooperating with the investigation.

 

These four banks agreed to settle their cases with the European Commission.

 

Credit Suisse was fined €83.2m. The commission said the bank "did not cooperate under the leniency or settlement procedures".

 

Nevertheless, it said that bank was granted a 4% reduction on its fine "to reflect the fact that Credit Suisse is not held liable for all aspects of the case".

 

The decision is the third following an investigation by the commission into the foreign exchange markets.

 

The others also involved traders sharing information through online chatrooms with names like "Two and a Half Men" and "Essex Express 'n the Jimmy".-BBC

 

 

Covid: Anglo American to introduce mandatory vaccinations

Mining giant Anglo American intends to introduce mandatory Covid vaccinations across the company and may sack workers who refuse.

 

The firm, which employs 95,000 people worldwide, says it is consulting with its staff about the policy.

 

The Daily Telegraph, citing an internal Anglo American document, reported that workers who refuse to be vaccinated could be fired "as a last resort".

 

This would happen if an alternative, remote working role could not be found.

 

A spokesman for Anglo American told the BBC: "Anglo American is intending to introduce a policy that requires Covid-19 vaccination for access to all its sites and offices, with the continued objective of protecting our employees, their families, and communities as much as we can."

 

It said that over the past 18 months, it had encouraged workers to be vaccinated and had set up vaccination facilities at some sites. This includes in southern Africa where Anglo American has a large presence and where the new Covid variant, Omicrom, was first detected last week.

 

"Requiring vaccination for access is the next step, given that vaccination is the best defence available," the company said.

 

'Legal requirements'

However, it admitted that implementing a mandatory Covid vaccination policy may vary in different countries.

 

"We expect there may be differences in exactly how and when the policy will be implemented across the group due to local contexts and legal requirements," said a spokesman.

 

Anglo American employs about 1,300 workers at the Woodsmith mine project in North Yorkshire, which it acquired when it bought Sirius Minerals last year.

 

It also has its headquarters in London.

 

Beth Hale, partner and general counsel at CM Murray, which specialises in employment law, said making vaccines mandatory is "difficult to do lawfully in the UK" for a business.

 

She questioned whether it would be "a proportionate way or ensuring health and safety in the workplace" when there are other measures that businesses can take, such as asking workers to take a lateral flow test or requiring social distancing in the office.

 

Ms Hale also said it would be difficult to fire someone for not being vaccinated against Covid.

 

As well as raising the issue of discrimination, she said: "There are issues around indirect discrimination against groups who are less likely to be vaccinated."

 

In November, Health Secretary Sajid Javid ruled out mandatory Covid vaccinations for everyone in the UK, saying it was something the government "won't ever look at". However, he said that it would be compulsory for frontline NHS staff in England to be fully vaccinated against Covid. Care home staff in England are required to be fully vaccinated

 

Northern Ireland is consulting on a similar move for frontline NHS staff. Scotland and Wales have not made any proposals to make Covid jabs compulsory for NHS workers or care home staff.

 

However, other countries such as Austria want to enforce vaccinations from February next year whileGermany announced on Thursday its Parliament would vote on whether to make vaccination mandatory.

 

This week European Commission president Ursula von der Leyen said European Union countries should consider mandatory vaccination to combat Covid and the Omicron variant.

 

She said: "How we can encourage and potentially think about mandatory vaccination within the European Union? This needs discussion. This needs a common approach, but it is a discussion that I think has to be led."

 

The Daily Telegraph reports that Anglo American workers could be exempted from the vaccination policy on medical grounds.

 

The internal Anglo American document quoted by the newspaper also states that staff would be "given a reasonable amount of time to get vaccinated prior to any consequences being imposed".-BBC

 

 

 

UK plays down Brexit link in US steel tariff row

Reports suggesting a US decision to maintain tariffs on British steel is linked to Brexit and Northern Ireland are a "false narrative", trade minister Penny Mordaunt has said.

 

She said wrangles with Brussels over the Irish border were "entirely separate" to trade with Washington.

 

It comes after the Financial Times reported the issue was stopping the UK resolving the steel row with America.

 

The US lifted tariffs on EU steel last month but kept them on UK steel.

 

Speaking in the Commons, Ms Mordaunt said the FT's report "might be true in terms of how some people in the US feel, but it is a false narrative. These are two entirely separate issues."

 

"We don't do ourselves any favours if we perpetuate these false narratives," she added.

 

The Trump-era tariffs of 25% on steel products and 10% on aluminium were imposed on the EU in 2018, when the UK was still part of the trading bloc.

 

The US agreed to end the duties on EU products in the autumn, but the tariffs, which nearly halved UK steel exports to its second largest market, remain in place on British steel.

 

The FT reported that US and UK talks to resolve the issue could not move ahead due to Washington's concerns over UK threats to trigger Article 16 of the Northern Ireland Protocol.

 

The protocol is a clause in the Brexit deal that leaves Northern Ireland in the EU's single market for goods, while checks are imposed between Great Britain and Northern Ireland.

 

The idea was to prevent a hard border between Northern Ireland and the Republic of Ireland, which many feared would would have destabilised the Good Friday Agreement peace deal.

 

But it has increased red tape on trade between Northern Ireland and the rest of the UK, and, according to unionist leaders, sparked rioting and violence this year in Belfast.

 

Downing Street has threatened to trigger Article 16 to override the protocol - something Washington has warned against.

 

Kim Darroch, a former ambassador to the US, said the reports on the "troubled state" of trade relations between the UK and the US are "confirmation that the US will act to protect a peace they helped broker" in Northern Ireland.

 

He added that the UK was "not going to have a thriving trade relationship with our biggest trading partner" - the EU, nor a free trade agreement with the US, "until the government stops threatening to walk away from an international agreement [on Northern Ireland] they negotiated and acclaimed only a few months ago".

 

The warnings have been coming thick and fast - and publicly - for some time. Washington is not impressed by UK threats to invoke Article 16 of the Northern Ireland Protocol.

 

That's true in the White House. It's also true within the vocal Irish lobby in the US Congress.

 

The UK and the EU have been holding talks on the effects of the Protocol - including checks and controls on goods moving from Great Britain to Northern Ireland.

 

The UK wants the text of the Protocol rewritten, and the Brexit Minister Lord Frost has called for more urgency in the discussion.

 

The EU has offered a package of measures which it says would reduce checks considerably.

 

It also argues that the UK needs to honour the agreement it signed up to, which is now part of an international treaty, rather than walk away from it.

 

The US is backing that line.

 

It's true that negotiations on the steel tariffs and negotiations on the NI Protocol are entirely separate processes. But political links are being made in influential quarters in Washington.

 

The International Trade Secretary, Anne-Marie Trevelyan, will travel to the US next week for previously planned talks on the steel tariffs and other issues.

 

But if unresolved arguments about the Protocol start to have a direct effect on other trade matters, that will be a cause for concern in London.

 

Ms Mordaunt said that International Trade Secretary Anne-Marie Trevelyan would be holding talks about steel and other issues with her American counterparts next week.

 

She also defended the UK's approach to discussions on the Northern Ireland protocol: "We have acted in good faith. We will do more to tell America we have acted in good faith and we are determined to be pragmatic. Lord Frost [the Brexit Minister] is going to do that."

 

She was answering a question from the SNP MP and chair of the International Trade Committee Angus MacNeil, who said: "Does she welcome America keeping control?" - a reference to the Brexiteer slogan that Brexit would allow the UK to "Take Back Control".

 

Earlier another International Trade Minister, Ranil Jayawardena described the punishing US steel tariffs as "unfair and unnecessary."

 

"We will continue to make representations to back British businesses," he said.

 

'We continue to engage'

A Department for International Trade spokesman said it welcomed the US government's willingness "to address trade issues relating to steel and aluminium".

 

"We remain focused on agreeing a resolution that sees damaging tariffs removed to the benefit of businesses on both sides of the Atlantic.

 

"We continue to engage closely with the administration on the Northern Ireland Protocol and we share a deep commitment to the Belfast (Good Friday) Agreement and the peace process."

 

Gareth Stace, director general of UK Steel, a trade group, said: "The UK's steel sector and our customers in the US urge the UK and US governments to continue to work together to find a solution to the issue of Section 232 tariffs, and to strain every sinew to do so.

 

"On the 1st January, steelmakers in the EU will gain a significant price advantage over their UK counterparts.

 

"Already, customers in the US will be factoring in January 2022 prices to their plans for the next year, which of course risks the UK sector losing market share in the US, to EU exporters."-BBC

 

 

U.S. job growth likely picked up; unemployment rate seen at 20-month low

(Reuters) - U.S. employers likely stepped up hiring in November as they scrambled to meet strong demand for goods and services, giving the economy a strong boost as another challenging year draws to a close, though worker shortages remained a constraint.

 

The Labor Department's closely watched employment report on Friday is expected to show a rapidly tightening jobs market, with the unemployment rate seen falling to a 20-month low of 4.5% and wages increasing further. It would come days after Federal Reserve Chair Jerome Powell told lawmakers that the U.S. central bank should consider speeding up the winding down of its massive bond purchases at its Dec. 14-15 policy meeting.

 

"There is clearly massive demand out there for workers. The bigger issue is the supply to meet that demand," said James Knightley, chief international economist at ING in New York. "If supply doesn't show any meaningful increase, that would suggest we are going to be in a situation where the labor market is going to continue to add to upside inflationary pressures."

 

Nonfarm payrolls likely increased by 550,000 jobs last month after rising 531,000 in October, according to a Reuters survey of economists. That would leave employment about 3.7 million jobs below its peak in February 2020. Estimates ranged from as low as 306,000 to as high as 800,000 jobs.

 

Strong employment gains would add to solid consumer spending and manufacturing data in suggesting that the economy was accelerating after hitting a speed bump in the third quarter. They would also put an early interest rate increase from the Fed on the table. The Omicron variant of COVID-19, however, poses a risk to the brightening picture.

 

While little is known about Omicron, some slowdown in hiring and demand for services is likely, based on the experience with Delta, which was responsible for the slowest economic growth pace in more than a year last quarter.

 

"No company wants to hire more labor if there isn't going to be a demand for that labor," said David Wagner, portfolio manager at Aptus Capital Advisors in Cincinnati, Ohio.

 

For now, the stars are perfectly aligned for November's employment report. First-time applications for unemployment benefits were near their pre-pandemic levels in mid-November. The ADP National Employment report on Wednesday showed strong private payrolls growth last month. read more

 

A measure of manufacturing employment hit a seven-month high, a survey from the Institute for Supply Management showed. read more

 

The Conference Board's labor market differential - derived from data on consumers' views on whether jobs are plentiful or hard to get - jumped to a record high in November. read more

 

ELEVATED WAGE PRESSURES

 

The anticipated drop in the unemployment rate to 4.5% from 4.6% in October would leave the jobless rate down 1.8 percentage points from January. There were 10.4 million job openings at the end of September.

 

With the labor market tightening, companies are boosting wages. Average hourly earnings are forecast rising 0.4%, matching October's gain. That would lift the annual increase in wages to 5.0% from 4.9% in October.

 

But the higher wages are not luring millions of Americans who lost their jobs during the pandemic recession back into the labor force. About 3 million people remain outside the workforce also despite generous federal government-funded unemployment benefits ending in September and schools reopening for in-person learning.

 

Economists say a strong stock market and rising house prices have increased wealth for many Americans, encouraging early retirements. Households have also accumulated massive savings and there has been a surge in self-employment.

 

"An unwinding of the forces keeping workers out of the labor force will not occur overnight, and with a sizable chunk of exits concentrated among retirees, the jobs market is set to remain tight," said Sarah House, a senior economist at Wells Fargo in Charlotte, North Carolina. "Wage pressures are likely to remain elevated and full employment is nearer in sight."

 

Employment gains in November were likely led by leisure and hospitality businesses, following a pattern similar to October. Manufacturing likely added 45,000 jobs compared to 60,000 in October, probably held back by a since-ended strike at John Deere (DE.N), involving about 10,000 workers.

 

A rebound in government payrolls is expected after three straight monthly declines. Pandemic-related staffing fluctuations have distorted normal seasonal patterns at state and local government education. There have been shortages of bus drivers and other support staff.

 

"Governments generally cannot easily raise wages or offer hiring bonuses to compete with private sector employers," said Dean Baker, senior economist at the Center for Economic and Policy Research in Washington. "Over time, they can arrange for needed pay increases, which may lead to a reversal in job loss in November."

 

The Thomson Reuters Trust Principles.

 

 

Softbank Group shares slide 3% after Didi, Arm, Grab triple setback

(Reuters) - Shares in Japanese conglomerate SoftBank Group Corp (9984.T) dropped over 3% on Friday after the giant tech investor was hit with three disappointments within 24 hours, including a poor Nasdaq debut for ride-hailing firm Grab (GRAB.O).

 

SoftBank, either in its own right or through its Vision Fund, has made a string of massive investments around the world, often in large technology companies.

 

Its shares fell to as low as 5,423 yen ($47.89) on Friday, before settling slightly higher but with losses of 23% over three weeks.

 

Chinese ride-hailing giant Didi Global (DIDI.N), which is 21.5% owned by the Vision Fund, said earlier Friday it would delist from the New York Stock Exchange and pursue a listing in Hong Kong, after coming under pressure from Chinese regulators over data security. read more

 

A few hours earlier, the U.S. Federal Trade Commission sued to block U.S. chip company Nvidia Corp's (NVDA.O) more than $80 billion planned acquisition of British chip technology provider Arm, which is owned by SoftBank, adding to already significant global regulatory challenges of the deal. read more

 

A few hours before that, shares of Grab (GRAB.O), Southeast Asia's biggest ride-hailing and delivery firm, slid more than 20% in their Nasdaq debut on Thursday following the company's record $40 billion merger with a blank-check company. read more

 

The Vision Fund is Grab's largest shareholder owning about 18.6% of the company.

 

"As long as such news is there, we would have to wait and hold off buying SoftBank Group," said Shigetoshi Kamada, general manager at the research department at Tachibana Securities. "Every time we see negative factors on SoftBank, we have to sell its shares."

 

The group reported a second-quarter loss last month as its Vision Fund unit took a $10 billion hit from a decline in the share price of its portfolio companies read more .

 

"We don't have a comment," a SoftBank Group spokesperson said when asked about the FTC's opposition to Nvidia's purchase of Arm.

 

He also declined to comment on Didi's plans to delist from the New York stock exchange and Grab's share debut, saying they were investments made by the Vision Fund and not by SoftBank directly.

 

The Thomson Reuters Trust Principles.

 

 

 

Citigroup applies for China securities license - WSJ

(Reuters) - Citigroup Inc (C.N) has applied for a securities license in China as the New York-based bank eyes a bigger presence in the world's second largest economy, the Wall Street Journal reported on Friday.

 

The bank recently submitted its application to the China Securities and Regulatory Commission and is also applying for a futures license in the coming months, the report said, citing a person familiar with the matter.

 

 

Citigroup intends to hire around 100 people in mainland China in the next two years to support its expansion onshore, the report said.

 

Citigroup did not immediately respond to a Reuters request for comment outside of business hours.

 

The Thomson Reuters Trust Principles.

 

 

Musk exercises more options, sells Tesla shares worth $1.01 bln

(Reuters) - Tesla Inc (TSLA.O) Chief Executive Elon Musk has sold another 934,091 shares of the electric vehicle maker worth $1.01 billion to meet his tax obligations related to the exercise of options to buy 2.1 million shares, regulatory filings showed on Thursday.

 

In early November, the world's richest person tweeted that he would sell 10% of his stock if users of the social media platform approved. A majority of them had agreed with the sale.

 

Since Nov. 8, Musk has exercised options to buy 10.7 million shares and sold 10.1 million shares for $10.9 billion.

 

Following a flurry of options exercise, Musk still has an option to buy about 10 million more shares at $6.24 each, which expires in August next year.

 

The Thomson Reuters Trust Principles.

 

 

Kenya: Search Resumes for 8 Trapped Miners At Bondo Goldmine

Kisumu — Search and rescue teams Friday resumed efforts to find trapped miners at a goldmine in Bondo's Abimbo areas after an unsuccessful attempt on Thursday.

 

Siaya County emergency services deployed two excavators to support distraught residents who used hoes and spades in a desperate attempt to rescue the eight.

 

Ten miners were reported to have been working at the mine when it collapsed on Thursday afternoon. Two were pulled out of the mine with minimal injuries.

 

Bondo OCPD Roseline Munyomlo told reporters on Thursday rescue teams had been dispatched from Siaya, 100km away from the scene.

 

She said those rescued were in good shape even though they were rushed to Bondo sub-county hospital for a medical assessment.-Capital FM.

 

 

Tanzania: New Forum to Boost Proper Internet Use Among Youth

INTERNET Society Tanzania Chapter (ISOC-Tanzania) has initiated a forum through which youth could earn skills and awareness over internet governance matters.

 

Dubbed the Tanzania Youth Internet Governance Forum (TzYIGF), it is expected to help the younger generation avoid any acts that could abuse the use of the internet.

 

According to Mr Nazar Kirama, president of the ISOC-Tanzania said members of the forum will be young people from all walks of life, including higher learning institutions.

 

Mr Kirama noted that they have facilitated the youth within the ISOC Tanzania to form their forum under which they would participate in the Tanzania Internet Governance Forum (TzIGF) to take place on Friday this week and the global Internet Governance Forum (IGF) 2021 to be held in Poland in Katowice from 6-10 December.

 

The TzIGF is a multi-stakeholder platform for public policy dialogue on internet governance. It involves stakeholders from the Civil Society, government, technical community, the academia and the Private Sector on the bottom-up agenda planning and consultations to arrive at topics, presentations, themes and sessions to be presented during the forum.

 

TzIGF is also part of the United Nations' Internet Governance Forum ecosystem known as National and Regional Initiatives (NRIs).

 

The ecosystem is interdependent, where internet governance national issues are fed into sub-regional, regional and finally to the United Nations' Internet Governance Forum (UN IGF).

 

This is done to facilitate a healthy national, regional and global debate on key issues that shape the evolution of the Internet and how it is governed, said the organizers.

 

Secretary of the TzYIGF, Evelyn Rujuguru, said the forum would be helpful to the youth since the world has now gone digital whereby almost everything is done online.

 

"When the youth are informed about what is available online, they may properly use the internet, including using it as an employment," said Evelyn who is also a third-year student of Computer Engineering and Information Technology at University of Dar es Salaam (UDSM).

 

She argued that the Covid-19 pandemic has offered a lesson over why it was important to have internet skills since several businesses shifted to online platforms.

 

She further said through the TzYIGF the youth would have the opportunity to contribute their views for consideration in decision making over internet uses in the country.

 

On his part, Albert Misilimbo, a third-year student of Telecommunication Engineering and member of TzYIGF, argued that the forum would spread awareness over positive things available on the internet.-Daily News.

 

 

Nigeria: Surge in Cooking Gas Prices in Nigeria Worries Suppliers, Environmentalists

Abuja — Abuja resident Freda Igri was preparing to make her native afang soup for her family, but her cooking gas tank was empty.

 

The price to refill a 12.5 kg tank with gas -- about $25 U.S. -- was nearly triple the normal price, and she said she couldn't afford to spend that much on gas alone.

 

"This scarcity of gas and the high price, it is unbearable, because going to the market right now, buying foodstuffs [is] costly, and coming back to cook again with the gas [is] costly. It's not easy," Igri said.

 

The Nigerian Association of Liquefied Petroleum Gas Marketers attributes the increase in the cost of the fuel to the introduction in August of a 7.5 percent import tax, or value-added tax, on gas in a bid to expand the country's revenue base.

 

Up to 70 percent of the gas consumed locally in Nigeria comes from imports, even though the country is a major oil producer with huge gas reserves -- ninth globally. Economists also say devaluation of the Nigerian naira currency and an unstable inflow of foreign exchange are driving up prices.

The situation is causing many Nigerians like Igri to turn to cheaper alternatives -- firewood and charcoal.

 

"We just use it because it's at least manageable," Igri said. "If you want to go for gas, it's quite expensive."

 

The growing demand for charcoal fuel is helping local dealers like Ashiru Mohammed make more profit. He said he's increasing his output. Business hadn't been good because people were using gas, but now his customers are all buying charcoal, he said.

 

But environmentalists warn that the demand for charcoal could lead to serious deforestation. David Michael Terungwa, a conservationist and founder of the Global Initiative for Food Security and Ecosystem Preservation, wants authorities to reverse the gas import tax.

 

"There will be massive deforestation, which is already going on, but this hike in prices will even make it worse," Terungwa said. "The average Nigerian could afford to use gas, but right now, not everybody can afford it."

 

In November, the Nigerian gas dealers association called on President Muhammadu Buhari to address the issue. Nigerian authorities have yet to respond, but at the recent global climate change summit, Buhari pledged to end deforestation by 2030 and carbon emissions by 2060 -- a goal conservationists say now hangs in the balance.-VOA.

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

National Unity Day

 

December 22

 


 

Christmas Day

 

December 25

 


 

Boxing Day

 

December 26

 


 

Public Holiday in lieu of Boxing Day falling on a Sunday

 

December 27

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

 

 


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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