Major International Business Headlines Brief::: 16 December 2021

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Major International Business Headlines Brief::: 16 December 2021 

 


 

 


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

 


 

 


ü  Federal Reserve to withdraw stimulus more quickly

ü  Qantas to switch domestic fleet to Airbus in blow to Boeing

ü  Tesla Model 3: Paris' largest taxi firm suspends cars after fatal crash

ü  Social care: Official advisers want immigration rules to be eased

ü  South Korean dairy giant apologises for controversial advert

ü  A380: last of the superjumbos handed to new owner

ü  US Congress narrowly votes to raise debt limit

ü  UK removes all 11 countries from red list

ü  Watchdog bans seven ads in crypto 'red alert'

ü  How vending machines are making life better for Kenyans

ü  Asian stocks rise with bond yields as Fed outcome boosts risk sentiment

ü  U.S. SEC to tighten insider trading rules, boost money market fund
resilience

ü  Nissan to build new battery recycling factories in U.S., Europe by 2025
-Nikkei

ü  Intel to invest $7 bln in Malaysia to build new plant

ü  Reddit confidentially files to go public

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Federal Reserve to withdraw stimulus more quickly

The Federal Reserve will cut back its stimulus programme more quickly than
planned, as it ratchets up its response to rising inflation.

 

The US central bank had already announced it was tapering off the monthly
support, introduced to bolster the economy during the pandemic.

 

But on Wednesday officials said the process would be speeded up, suggesting
the stimulus will end by March.

 

The move opens the door to an interest rate rise in the first half of 2022.

 

"Economic activity is on track to expand at a robust pace this year,
reflecting progress on vaccinations and the reopening of the economy," said
Federal Reserve chair Jerome Powell.

 

"In my view, we are making rapid progress toward maximum employment," he
said.

 

Demand remained "very strong", although the arrival of the Omicron variant
posed a risk to the recovery, he added.

 

Officials forecast that inflation will run higher next year than they had
previously projected and that unemployment, the other measure targeted by
the Federal Reserve, would fall to 3.5%.

 

As a result they forecast that benchmark interest rates would need to rise
from current near-zero levels to 0.9% by the end of 2022.

 

All year long, the Federal Reserve has been advocating a "patient" approach
to winding down its support of the economy.

 

But faced with inflation at an almost 40-year high, the committee basically
said, right we need to get on with it FAST. It's a particularly hawkish tone
by the normally "wait and see" Fed.

 

For several months, the Central Bank had been calling inflation
"transitory." That word has been put to pasture.

 

Americans are struggling to meet the cost of basics like food and housing
because of skyrocketing prices. But this is an indication that the Fed is
also spooked by the dramatic rise in inflation and concerned about just how
long it will stick around.

 

line

The Federal Reserve began winding down its $120bn-a-month bond-buying
programme in November, saying it would reduce the stimulus by $15bn a month.

 

But November's inflation data, showing prices rising at a pace not seen
since 1982, increased pressure on the central bank policy-makers to take
further action.

 

The stimulus will now be reduced by $30bn a month starting in January.

 

"The Fed apparently just woke up to the inflationary pressures consuming the
US economy. With [Consumer Price Inflation] in touching distance of 7%, it
should be of no surprise to see the Fed accelerating tapering," said Seema
Shah, Chief Strategist at Principal Global Investors.

 

"Price pressures may well ease next year, but inflation will settle at a
level uncomfortably high for the Fed," she added.

 

"The big question for markets now is: can the US economy digest this pace of
[interest rate] hikes without ending up with a stomach ache?"

 

The new Omicron coronavirus variant has added uncertainty over the future
path of the economy.

 

However the Federal Reserve said it expected economic growth to be 4% next
year, higher than the 3.8% projected in September.

 

Diane Swonk, economist at Grant Thornton, said Mr Powell had chosen his
words carefully reflecting that "this is a booming economy in which
inflation has been more persistent" but that there had also been
"extraordinary progress towards full employment".

 

His language around employment had been "very bullish" she said, "justifying
rate hikes sooner rather than later".-BBC

 

 

Qantas to switch domestic fleet to Airbus in blow to Boeing

Australian airline Qantas has announced that it will switch its domestic
fleet of planes to Airbus from Boeing.

 

The deal is a major win for the European plane maker and a blow to its
US-based arch-rival.

 

The company also said that it expects to make a loss of more than A$1.1bn
(£590m; $788m) in the first half of its financial year.

 

Like the rest of the global aviation industry, Qantas has been hit hard by
months of coronavirus lockdowns.

 

"This has been one of the worst halves of the entire pandemic, where most
states had their borders closed and the majority of Australians were in
lockdown. Domestically, our capacity fell to around 30 per cent of pre-Covid
levels for several months," Qantas chief executive Alan Joyce said in a
statement.

 

"We have significantly reduced our cost base which improves our ability to
recover," he added.

 

 

The company also said it had boosted its coffers by selling land near Sydney
Airport for $574m.

 

The airline said demand for domestic flights slowed in late November as the
Omicron variant of Covid-19 emerged, although the situation was now starting
to improve.

 

It also expects competition in the domestic travel market to intensify in
the second half of the financial year as Australia's state borders open.

 

Looking to the future, the company announced that it had agreed to buy 40
Airbus jets, with the option to purchase another 94 aircraft.

 

"This is a long-term renewal plan with deliveries and payments spread over
the next decade and beyond, but the similarly long lead time for aircraft
orders means we need to make these decisions now," Mr Joyce said.

 

The deal is subject to approval by the company's board, which is expected by
June next year after negotiations with pilots.

 

Deliveries of the new planes are due to start in mid-2023 and continue over
the 10 years to replace the airline's ageing fleet of Boeing jets.

 

Qantas also said that the new planes would lower its carbon emissions.

 

The announcement by Qantas caps a good week for Airbus after Singapore
Airlines on Wednesday signed a provisional deal to buy seven A350
freighters.-BBC

 

 

Tesla Model 3: Paris' largest taxi firm suspends cars after fatal crash

Paris' largest taxi firm, G7, has suspended the use of Tesla Model 3 cars in
its fleet, after one was involved in a fatal accident over the weekend.

 

One person was killed and another 20 injured, after a driver lost control of
the vehicle.

 

Tesla has denied any technical problem with the car, which has self-driving
features such as automatic steering.

 

Paris prosecutors have opened an investigation into charges of manslaughter
and unintentional injury.

 

On Wednesday, France's Transport Minister Jean-Baptiste Djebbari also said
there was no suggestion, at this stage, that the accident was linked to a
technical problem.

 

Tesla Europe's chief executive told the minister there had been no safety
alerts about the model when they spoke on Tuesday night.

 

The accident involved an off-duty taxi driver who had been taking his family
to a restaurant, reports say.

 

French media said the vehicle struck two pedestrians, a traffic light and a
van.

 

Tesla's assistive technology allows its vehicles to automatically steer,
accelerate and brake.

 

But the firm has been accused of being misleading, since the technology does
not automatically drive the car, and drivers are required to maintain
control and attention at all times.

 

Tesla has marketed the feature as an "Autopilot" and promised "full
self-driving", which is now available to some users in a beta version.

 

Users have abused the system frequently in the past, with examples ranging
from using their phones while the car drives unattended to switching car
seats and leaving no driver at the wheel.

 

Earlier this year, US authorities opened an official investigation into
Autopilot system, following 11 Tesla crashes since 2018 involving emergency
vehicles.-BBC

 

 

 

Social care: Official advisers want immigration rules to be eased

The government has been urged by its official immigration advisers to make
it easier for foreign care workers to come to the UK.

 

The Migration Advisory Committee (MAC) said the sector was facing "severe
and increasing" problems with hiring and retaining staff after Brexit.

 

It suggested changes to allow employers to sponsor visas for workers on more
than £20,480 a year.

 

The Home Office said it would consider the recommendation carefully.

 

The proposal was welcomed by several groups in the care sector, who have
long argued less stringent rules are needed to boost recruitment.

 

Research charity Skills for Care estimated last month that just over 11% of
vacancies in the sector are currently unfilled.

 

 

The MAC's recommendation came as it published initial findings of a review
it is conducting into the effect of Brexit on social care recruitment.

 

Since the UK left the EU, social care workers from EU countries are no
longer automatically eligible to work in the UK and instead have to apply
for a visa.

 

The committee said all social care workers should be able to apply under the
UK's "shortage occupation list", meaning they need fewer points and a lower
salary to meet the criteria.

 

They also said they should be able to apply for the government's special
visa for health and social care workers.

 

Currently, only senior roles with qualifications above a certain level are
eligible for these routes.

 

The MAC recommended the move to help "alleviate" short-term recruitment
problems, which it said were likely to worsen post-Brexit.

 

Sector 'on its knees'

However, it also concluded many issues predated the UK's exit, and
"underfunding" of the sector was "the underlying cause" of difficulties.

 

The recommendation to widen access to the shortage occupation list was
welcomed by industry groups Care England and the Homecare Association.

 

Mike Padgham, chairman of the Independent Care Group, also said a relaxation
of immigration rules "can't come soon enough".

 

He added that the sector was already "on its knees" trying to cope with
self-isolation caused by the spread of the Omicron variant of Covid.

 

Migration Minister Kevin Foster said the government's post-Brexit
immigration system was "delivering on the people's priorities of getting
businesses to invest in the domestic workforce while attracting those with
the skills we need."

 

He said senior roles were already eligible for the easier visa routes, "but
businesses need to make long-term investments in the UK domestic workforce,
including offering hard working care workers the rewarding packages they
deserve."-BBC

 

 

 

South Korean dairy giant apologises for controversial advert

South Korea's biggest dairy brand has been forced to apologise over an
advert depicting women as cows.

 

The video by Seoul Milk shows a man secretly filming a group of women in a
field, who later turn into cows.

 

After facing a public backlash, the company removed the promo from YouTube,
but it has since gone viral after being re-uploaded by internet users.

 

Some also compared the man's behaviour to "molka", the illegal practice of
secretly filming people.

 

"We sincerely apologise to everyone who felt uncomfortable with the milk
commercial released on 29th last month," Seoul Milk's parent company Seoul
Dairy Cooperative said in an apology posted online.

 

"We are accepting this matter seriously and will conduct an internal review,
and take extra care to prevent similar incidents from occurring in the
future. We bow our heads in apology," it added.

 

The clip starts with a man with a camera wandering through the countryside.

 

"We finally managed to capture them on camera in a place of pristine
cleanliness," a male voice-over says.

 

This is then followed by the man, hidden in bushes, filming a group of women
drinking from a stream and doing yoga.

 

When the man accidentally steps on a twig it startles the women who suddenly
turn into cows.

 

The advert ends with the words "Clean water, organic feed, 100% pure Seoul
Milk. Organic milk from an organic ranch in the pleasant nature of
Cheongyang."

 

The advert has sparked a national debate over sexism and gender sensitivity
issues but the criticism was not confined to women being depicted as cows.

 

Some also voiced concerns about the man surreptitiously filming the group of
women, with spy cam crimes in South Korea having risen over the past few
years.

 

The continuing trauma of South Korea's spy cam victims

South Korea's spy cam porn epidemic

Molka, which literally translates to "secret camera", has become a
particular problem for women in South Korea.-BBC

 

 

 

A380: last of the superjumbos handed to new owner

The final Airbus A380 ever to be built is being handed over to its new
owners on Thursday, the Dubai-based carrier Emirates.

 

It is a landmark moment. The giant of the skies will continue to fly, but
its long-term future remains uncertain.

 

Emirates, which owns roughly half of the A380 fleet, looks set to continue
using it for many years to come.

 

But several other airlines stopped using their plane during the pandemic,
and some have already been scrapped.

 

The A380 is the world's largest passenger jet. In standard configuration, it
carries 545 passengers - although in theory it can carry a maximum of 853.

 

The double-decker colossus has four engines, an 80-metre wingspan and a
maximum take-off weight of 560 tonnes. It is also very complex - containing
around 530km (330 miles) of wiring.

 

 

Nimble flyer

Yet according to Alex Scerri, a former A380 Captain, it is remarkably easy
to fly.

 

"Airbus have managed to engineer the A380 so that it feels just like a much
smaller plane like the A320," he says. "It's remarkably nimble, and it
really doesn't feel like a 600-tonne aircraft."

 

The project was conceived in the early 1990s. The A380 was meant to be a
symbol of European industrial prowess, a flagship for the Airbus fleet to
surpass Boeing's 747 jumbo.

 

At the time, it was widely assumed that major airport hubs around the world
would become more and more congested as cities grew and air traffic
multiplied. This would create a market for very large planes which could
carry more passengers without increasing the number of flights.

 

By the time the A380 made its first commercial flight in 2007, however, the
seeds of its demise had already been sown.

 

While Airbus engineers struggled to get the superjumbo onto the market,
Boeing was quietly marketing long range versions of its economical
twin-engine 777 - and developing the 787 Dreamliner.

 

The 787 was a design which made the most of advances in engine technology,
as well as in composite materials and aerodynamics. The result was an
aircraft that was much more efficient than previous models, used less fuel
and was therefore cheaper to run.

 

Together with Airbus' own A350, launched a few years later, it changed the
shape of the market.

 

Instead of using giant planes to transport huge numbers of people between
'hub' airports, before placing them on connecting flights to other
destinations, airlines could now fly smaller planes on less crowded direct
routes between smaller cities which would previously have been unviable.

 

Compared with these new designs, the four-engine A380 was expensive to buy
and costly to run.

 

"The technology on the A380 was basically from the 1980s," says Peter
Morris, chief economist at the aviation consultancy Ascend by Cirium. "It
was frozen into the design before the step-change in aircraft technology -
before carbon composites and highly efficient engines".

 

As a result, Airbus struggled to sell it. Only 251 planes were ever built,
and the programme struggled to break even - let alone recoup the more than
$25bn invested in it.

 

Yet according to Airbus executive Philippe Muhn, the project still brought
significant benefits to the organisation, which had developed from a
grouping of manufacturers from different countries.

 

"This was an aircraft that allowed the company to integrate, from a
technical standpoint, industrial standpoint, and culturally as well", he
explains.

 

"And then of course all the investment in the A380 technology was the
foundation of what the A350 is today."

 

But, while it may have been a commercial failure for Airbus, the superjumbo
has clearly been a success for its primary customer.

 

Emirates used it to create a global network of high-density, long-haul
routes centred on its base in Dubai. That helped it to become one of the
world's largest airlines.

 

"For Emirates it created a niche in the market", explains Peter Morris.

 

"Without the A380, I contend that Emirates would never have reached the
level that it did. They managed to make something which helped build the
prestige of Dubai, and created a market for the plane as well. It did work."

 

But for other airlines, the superjumbo was less of a success. Filling all of
those seats could be a challenge - and when the Covid pandemic hit,
virtually the entire fleet was grounded.

 

While some carriers are now bringing them back, others, such as Lufthansa
and Air France have decided to retire their fleets for good.

 

That raises the question of what will happen to the unused planes. In
theory, they could fly for decades. But according to Ascend by Cirium, the
second-hand market for such large aircraft is "small to non-existent".

 

It is likely, then, that more A380s will simply go to the scrapyard,
following the seven that have already reportedly been sent.

 

But others will remain in service. Emirates, which has 118 A380s, says it
will continue to fly them for the next two decades - though over time their
number is likely to shrink as newer planes are brought in.

 

However long it continues to fly, aviation historian Shea Oakley thinks the
superjumbo has already sealed its place in history.

 

"Tragically for Airbus, they built a technological masterpiece, but they
chose the wrong vision. It was a fine aircraft, but the wrong choice for the
times", he says.

 

"I'm not sure there will ever be a larger aircraft than the A380."-BBC

 

 

 

US Congress narrowly votes to raise debt limit

US lawmakers have voted to raise the national debt limit, just days before a
potential US credit default.

 

The measure, which President Joe Biden is expected to sign into law in the
coming days, raises the US borrowing limit by $2.5tr (£1.9tr).

 

Treasury officials had warned that the economy could slip into a recession
if it was not raised by mid-December.

 

The vote comes after a bipartisan deal was struck last week to raise the
limit through a one-time-only rule change.

 

That agreement, which was struck between Senate Democratic Majority Leader
Chuck Schumer and Republican Minority Leader Mitch McConnell, saw 14
Republicans vote along with every Senate Democrat to change the rules.

 

The deal allows Democrats to raise the limit on their own through a simple
majority, rather than by 60 votes, which would be needed to overcome a
Republican filibuster.

 

Democrats and Republicans have normally voted together to raise or suspend
the debt ceiling, but this year Republicans have said that Democrats should
be responsible for doing it on their own.

 

On Tuesday, the vote narrowly passed the Senate by a vote of 50-49. The
House passed the bill by a vote of 221-209.

 

It will now be sent to President Joe Biden for his signature.

 

The measure also suspends the debt ceiling until 2023 - after the 8 November
midterm congressional elections that could shift the balance of power in
Washington.

 

The bill increases the US borrowing limit to $31.4tr from $28.9tr and brings
an end to a months-long row between both parties that continued despite both
sides agreeing that a default would severely harm the US economy.

 

The increased limit is in part needed to pay off the $7.85tr in additional
debt added by the Trump presidency through tax cuts and Covid spending.

 

"This is about paying debt accumulated by both parties," Mr Schumer said in
a speech on the Senate floor ahead of the vote.

 

"The American people can breathe easy and rest assured there will not be a
default," he added.

 

Mr McConnell, whose party had condemned Democrats for their $1.9tr Build
Back Better social spending plan, warned Americans in his remarks: "If they
jam through another reckless taxing and spending spree, this massive debt
increase will just be the beginning."

 

The US spends more than it takes in through taxes each year, requiring the
government to sell bonds as a means of borrowing money.

 

A 1939 law requires Congress to set a limit for how much debt can be held,
leading to dozens of votes since to raise the figure.-BBC

 

 

UK removes all 11 countries from red list

The government has said that all 11 countries will be removed from the UK's
travel red list from 4am on Wednesday.

 

Angola, Botswana, Eswatini, Lesotho, Malawi, Mozambique, Namibia, Nigeria,
South Africa, Zambia and Zimbabwe are on the list.

 

The red list was reintroduced in late November as a precaution after the
emergence of the Omicron variant.

 

But Health Secretary Sajid Javid said it had spread so widely the rules no
longer had much purpose.

 

"Now that there is community transmission of Omicron in the UK and Omicron
has spread so widely across the world, the travel red list is now less
effective in slowing the incursion of Omicron from abroad," he told
Parliament.

 

"Whilst we will maintain our temporary testing measures for international
travel we will be removing all 11 countries from the travel red list
effective from 4am tomorrow morning."

 

 

What tests do I need if I travel abroad?

All UK arrivals from red list countries are required to pay for and
self-isolate in a pre-booked, government-approved hotel for 10 days.

 

But with all 11 countries being removed from that list, it was confirmed
that those currently in managed quarantine would be allowed to leave early
and "follow the rules as if they had arrived from a non-red list country".

 

Some travellers had paid thousands of pounds to stay in government-approved
quarantine hotels, with complaints of chaotic organisation and inedible food
during their stays.

 

Anyone who has tested positive will to remain in isolation, the Chancellor
of the Duchy of Lancaster Stephen Barclay told the House of Commons.

 

Mr Javid also said earlier he was "very persuaded" by calls to reimburse
people and hoped to make an announcement on that soon.

 

The point of putting countries on the red list was to act quickly to slow
the spread of Omicron.

 

Now it has spread in the community, the government doesn't think putting
people from a limited list of countries in hotels is useful.

 

It will be welcome news to people with plans to come to the UK from
countries like South Africa and Nigeria, or who had delayed their return
from those countries.

 

But it will be frustrating for those who did get caught up in the revival of
the red list, which only started about a fortnight ago. Some people who have
already paid for hotel stays want to see the government pay their costs.

 

The travel industry wants all restrictions removed. Businesses see testing
measures as putting a dampener on their recovery. It seems the government is
not prepared to go that far, just yet.

 

This will make travel companies, who normally benefit from a holiday booking
rush in late December and early January, feel nervous.

 

line

The move follows anger from African countries, with the UN describing the
ban on non-UK residents entering England as "travel apartheid".

 

South African Tourism Minister Lindiwe Sisulu said the UK announcement had
"come just in time to allow families and friends to unite over the festive
season".

 

The travel industry had also warned the restrictions were hurting business.

 

Tim Alderslade, head of trade group Airlines UK, said emptying the red list
made "complete sense" but that the government should also scrap the
remaining travel restrictions.

 

Currently all arrivals, regardless of where they fly from, must take Covid
tests within 48 hours of setting off for the UK and PCR tests within two
days of their arrival.

 

"If the red list isn't necessary, given that Omicron is established here at
home, then neither are the costly emergency testing and isolation measures
imposed on even fully vaccinated travellers, which again put us completely
at odds with the rest of Europe," he said.

 

Transport Secretary Grant Shapps said these testing measures would be
reviewed in the first week of January.

 

"As always, we keep all our travel measures under review and we may impose
new restrictions should there be a need to do so to protect public health,"
he said on Twitter.

 

Alison Stitt says her experience in a quarantine hotel pushed her to the
point of meltdown.

 

She was in South Africa visiting her father for his 90th birthday when the
country went on the UK's red list.

 

It took days to rearrange a flight home on the same date that a quarantine
hotel room was available. They had to stay longer in their AirBnB and
re-book their car hire while they waited - on top of extending their car
parking and kennels bookings in the UK.

 

Now she and her husband David are at a hotel near Gatwick.

 

Alison says the total cost of their extended stay in South Africa and paying
for their quarantine facility has been at least £5,500.

 

"It was one expense after another. It's all going on credit cards. It was
meant to be a budget trip."

 

She describes the experience of going into quarantine as a farce. "We were
herded into coaches after we landed. We got lucky coming to Gatwick, some
were going to Manchester."

 

Alison says her room is clean and modern, but she doesn't feel safe in the
hotel, saying she's seen guards sneezing with their masks down.

 

The hotel had to be evacuated last week because of a fire alarm.

 

"We know someone has tested positive in the hotel. They came to re-test us,
saying that we had been exposed to someone with Covid during the fire
alarm."-BBC

 

 

Watchdog bans seven ads in crypto 'red alert'

Seven cryptocurrency adverts have been banned by the UK's advertising
watchdog.

 

The Advertising Standards Authority (ASA) says monitoring cryptoassets, like
Bitcoin, is a "red-alert priority" following concerns that many ads fail to
fully convey the risks of investing.

 

The banned ads included a promotion by a pizza chain and Facebook ads for a
large cryptocurrency exchange.

 

The ASA says it hopes to produce new guidance on cryptocurrency advertising.

 

All seven ads or promotions were "banned for irresponsibly taking advantage
of consumers' inexperience and for failing to illustrate the risk of the
investment", it said.

 

The companies whose ads were found to have broken the rules were:

 

·         Coinburp: A Twitter page for Coinburp, a cryptocurrency trading
platform.

·         eToro (UK): A paid-for display ad for eToro, a stocks and
cryptocurrency trading platform.

·         Payward: A digital poster for Kraken, an online cryptocurrency
exchange.

·         Exmo Exchange: A YouTube video promoting cryptocurrency exchange
Exmo

·         Luno Money: An in-app ad for Luno, a cryptocurrency exchange
service.

·         Coinbase Europe: A paid-for Facebook ad for Coinbase, a
cryptocurrency exchange platform.

Papa John's GB: A promotion on the Papa John's pizza restaurant chain's
website and in a Twitter post.

The banned Papa John's website promotion offered consumers "free Bitcoin
worth £10", as well as telling customers: "Save £15 when you spend £30 or
more & get £10 worth of Bitcoin from Luno!"

 

The firm said it was part of their annual celebration of "Bitcoin pizza
day", which is said to mark the trading of two Papa John's pizzas for 10,000
bitcoins in May 2010. Ten thousand bitcoins would today be worth more than
£350m ($462m).

 

The company argued that the promotion did not make any comment on
cryptocurrency or its suitability for investment.

 

The chain said the "free" Bitcoin offer was entirely different from a
scenario where a consumer was given the opportunity to invest their own
money in a financial product.

 

But the ASA found the offer "trivialised what was a serious and potentially
costly financial decision, especially in the context of the intended
audience who were likely to have limited knowledge of cryptocurrency".

 

Crypto platforms

The ad for Kraken, which led to a complaint to the ASA, was seen at London
Bridge station on a digital poster.

 

Although it contained a lengthy disclaimer, the ASA considered that
"consumers would not have had the time to comprehend the relevant
information in the disclaimer, if seen at all, and that it therefore was not
clear".

 

The decision comes as some politicians question whether any cryptocurrency
adverts should run on London's trains and buses.

 

In November, the ASA announced that it was investigating adverts that
appeared on the underground for cryptocurrency Floki Inu - a so-called "meme
coin" named after billionaire Elon Musk's dog.

 

That investigation continues, the ASA says, although Floki Inu insists that
their adverts abide by the rules.

 

'Red alert'

The bans form part of a broader project that will result in updated guidance
for the advertising of cryptoassets next year.

 

Miles Lockwood, the watchdog's director of complaints and investigations,
said: "Cryptoassets are a red-alert priority issue for us.

 

"Consumers need to know about the risks of investing in cryptoassets and
companies should make sure that their ads aren't misleading or socially
irresponsible by taking advantage of consumers' lack of awareness around
these complex and volatile products," he said.

 

The ASA said it would continue to review cryptoasset ads over the next few
months, not just for cryptocurrencies but also for NFTs and fan tokens.-BBC

 

 

How vending machines are making life better for Kenyans

Shopkeeper, Jackson Opati, has stopped selling packaged milk from his store
and instead switched to using a vending machine dispensing fresh milk. "This
ATM is a more lucrative business," he explains.

 

Mr Opati runs a small grocery store in the crowded settlement of Kibera in
Kenya's capital, Nairobi.

 

For the last year, or so, his shop - built from wooden poles and corrugated
sheets - has hosted a milk vending machine from US-Kenyan company Zaidi
Technologies. It is one of nine such machines that Zaidi has operating in
Kenya.

 

Using a small panel on the front of the machine, he keys in the amount of
money that a customer wants to spend and seconds later the corresponding
quantity of milk pours into a recycled plastic bottle or bag that the
customer brings from home.

 

"Since I got the vending machine, the number of customers has sharply
increased," he says.

 

Monday to Thursday, Mr Opati sells 150 litres of milk a day. On Fridays and
weekends that jumps to 300 litres, giving him 6,000 Kenyan shillings ($53;
£40) in profit a week. "For me, it's a good business," he says.

 

 

"These vending machines have become very important for us in Kibera," says
one of his customers, Caroline Atieno, while queuing in front of the tall
machine, which is decorated with pictures of black and white Friesian cows.

 

She has five children and says she gets through a lot of milk: "With this
ATM, I can spend whatever I want on milk, even as little as 10 Kenyan
shillings (9 cents; 7p), based on the money that I have in my pocket."

 

This is a key attraction of the selling in this way, Kenyans who live in
such settlements, often earn less than a dollar a day, so being able to buy
fresh produce in small quantities is a huge bonus.

 

"The milk is also much cheaper than the packed long life milk which is sold
at most places in Kibera, and [it] tastes better," Ms Atieno adds.

 

The pasteurised milk from Zaidi's ATM goes for 65 Kenyan shillings a litre,
while packed ultra-heated (UHT) long life-milk normally costs around 110
Kenyan shillings a litre and is only sold in packages of 200ml, 300ml or
larger.

 

In recent years, vending machines have been popping up across Nairobi's
numerous informal settlements - selling milk, cooking oil, clean renewable
cooking fuel and sanitary pads.

 

"We decided to start selling milk through ATMs as it removes the cost of
packaging, improves the costs of logistics and allows us to sell milk
without attracting VAT," says Graham Benton, co-founder and chief executive
of Zaidi Technologies.

 

"The ATMs also help us to unlock the 80% of the market that has remained
untapped by larger, regulated businesses."

 

The machines have also provided new business opportunities, explains Vivian
Kenyatta. The 28-year-old single mum formed a youth group of 20 members.
"With our savings, we wanted to start a business to uplift ourselves and
these ATMs appeared to be rather affordable."

 

While they did not have enough pooled cash to open a whole shop, they were
able to buy a cooking oil vending machine for 100,000 Kenyan shillings
($890; £670) this year and rent a small space, from where they sell the oil.

 

"We make a profit of around 400 Kenyan shillings a day, which we put on a
bank account and we might use for emergencies, like when one of our group
members needs to go to a hospital," the single mother explains this while
she dispenses cooking oil from the machine into a recycled plastic cooking
oil bottle for her next customer.

 

Although operating vending machines in deprived areas of Africa comes with
challenges.

 

Often, shop owners can only afford the very cheapest machines, which might
not be suitable for food. They also may not be able to pay for proper
maintenance. To save money they might turn machines off when they are empty
- meaning any residue goes bad or congeals in the system.

 

Power cuts, which are very common in Kenya and neighbouring countries, are
an added disruption.

 

Zaidi Technologies has developed a different business model to counter some
of these issues: it owns and installs the vending machines, the shopkeeper
then pays for the electricity and provides water for cleaning. In return
they receive a commission of 4 shillings for every litre of milk they sell.

 

Unscrupulous shopkeepers have also been known to dilute milk, but Zaidi
Technologies are working on a tamper-proof system - after pasteurisation,
the milk containers will be delivered to shops and slotted into the machines
by the delivery drivers, who will then lock the vending machines.

 

"The systems will be automated, so that we can see if the door is tampered
with, or, if the milk violates our temperature thresholds, allowing us to
take the system offline until a technician can come and service it,"
explains Mr Benton.

 

Technology company, KOKO Networks, has developed its own vending machine
system specifically for the African market, to supply its bioethanol cooking
fuel.

 

Like the milk machines, the KOKO machines can dispense very small amounts of
fuel, to cater for cash-strapped customers.

 

"To protect fuel quality and ensure safe handling... our ATM's have lots of
safety features and sensors. Our fuel can only be dispensed into a
registered KOKO fuel canister and with the ATM we avoid creating mountains
of plastic bottling waste", says Sagun Saxena, executive director at KOKO
Kenya.

 

When customers refill their fuel canister, they buy the fuel directly from
KOKO, using mobile money payments, while KOKO pays a commission to the
shopkeeper.

 

The company was launched in Nairobi in partnership with Shell in 2019 and
now runs more than 750 bioethanol vending machines in Kenya and will enter
other East African countries in the coming year.

 

Mr Saxena sees lots of opportunities for vending machines in the food sector
as well. "Currently packaging, handling and trading via small shops adds a
lot of costs," he says.

 

"That's why retail prices for food are higher in small, local shops versus
even the larger supermarkets in Nairobi. Bringing these costs down through
the use of vending machines, will benefit many households."-BBC

 

 

Asian stocks rise with bond yields as Fed outcome boosts risk sentiment

(Reuters) - Asian stocks followed Wall Street higher on Thursday after the
U.S. Federal Reserve said it would end bond-buying stimulus in March to set
up three interest rate increases next year to tackle heated inflation.

 

Bond yields rose while the dollar stabilized after slumping overnight as
havens fell out of favour. Gold gained along with crude oil.

 

 

"The economy no longer needs increasing amounts of policy support," Fed
Chair Jerome Powell said in a news conference after the conclusion of the
two-day policy meeting.

 

Japan's Nikkei (.N225) climbed 1.67% and touched a three-week intraday high,
while Taiwan's benchmark (.TWII) gained 0.62%.

 

 

Mainland China shares slipped though, with an index of blue chips (.CSI300)
losing 0.12%.

 

MSCI's broadest index of Asia-Pacific shares (.MIAP00000PUS) added 0.26%.

 

U.S. e-mini futures pointed to a 0.12% rise for the S&P 500 (.SPX), after it
rallied 1.63% overnight to finish near a record high.

 

The Federal Open Market Committee (FOMC) laid out a scenario in which the
COVID-19 pandemic, despite the emergence of the Omicron variant, gives way
to a benign set of economic conditions, with inflation easing largely on its
own, interest rates increasing comparatively slowly, and the unemployment
rate staying low in coming years.

 

"The FOMC delivered a hawkish tilt for Christmas (but) markets seemingly
have taken the tilt in their stride given three hikes were close to being
priced into the meeting," Tapas Strickland, a director of economics at
National Australia Bank, wrote in a note to clients.

 

"Powell didn't think the Fed was behind the curve" in fighting inflation,
Strickland added. "Risk sentiment remains positive."

 

Money markets see good odds for a first Fed hike by May, followed by more by
September and December, although three quarter-point rate increases aren't
fully priced until February 2023.

 

Ten-year U.S. Treasury yields edged up to 1.4718%, adding to Wednesday's
advance.

 

Equivalent-maturity Australian government bond yields jumped 3.7 basis
points to 1.617%.

 

The U.S. dollar index , which measures the currency against six major peers,
was 0.02% higher at 96.399, stabilizing after a 0.21% loss overnight.

 

Gold rose 0.16% to $1,779.88.

 

U.S. crude and Brent each advanced about $1 to $71.85 and $74.78,
respectively.

 

Attention now turns to policy announcements later Thursday from the European
Central Bank and the Bank of England, which are also facing heated
inflation.

 

The banks are trying to balance the need to support economies threatened by
the coronavirus with the need to withdraw easy money to cool inflation.

 

The ECB is expected to dial back stimulus one more notch, but will pledge
copious support for the next year, sticking to its long-held view that price
pressures will abate on their own.

 

However, investors sharply increased their bets that the BoE is about to
raise rates after a report on Wednesday showed British consumer price
inflation surging in November to its highest in more than 10 years,
exceeding all forecasts from economists. read more

 

Sterling eased to $1.32575 after climbing 0.28% overnight.

 

The euro slipped 0.07% to $1.1287 following Wednesday's 0.34% jump.

 

The Thomson Reuters Trust Principles.

 

 

U.S. SEC to tighten insider trading rules, boost money market fund
resilience

(Reuters) - The U.S. Securities and Exchange Commission (SEC) on Wednesday
proposed tightening a legal safe-harbor that allows corporate insiders to
trade in a company's shares, and other rules to improve the resilience of
money market funds.

 

The agency also unveiled measures to increase transparency around share
buybacks and the complex derivatives at the center of New York-based
ArchegosCapital Management's meltdown earlier this year.

 

The slew of long-awaited changes mark a milestone for SEC Chair Gary Gensler
who has outlined an ambitious agenda to crack down on corporate wrongdoing,
improve corporate governance and address inequities in the markets.

 

The changes, which are subject to public consultation, will affect a swathe
of corporate America, from publicly traded companies and their top
executives, to banking groups and asset managers including BlackRock,
Vanguard, Fidelity and Goldman Sachs.

 

The proposed tightening of "10b5-1" corporate trading plans in particular
was pushed by progressives who have long criticized the rules, saying they
allow insiders to game the system and reap windfalls at the expense of
ordinary investors.

 

The plans allow insiders to trade in a company's stock on a pre-determined
date, providing legal protection against potential allegations of insider
trading. Critics say it is far too easy to adopt, amend or cancel trades
with little scrutiny.

 

Wednesday's proposal requires executives to disclose those plans and any
modifications. For executives, the SEC also wants a "cooling-off" period of
120 days between the adoption of a plan and the first trade. For companies
trading in their own securities, the cooling-off period would be 30 days.

 

The proposal would also bar insiders from having several overlapping plans,
which Gensler said could allow them to cherry-pick favorable plans as they
please.

 

While critics have long said the plans are flawed, trades by executives at
Pfizer (PFE.N) and Moderna (MRNA.O) during the COVID-19 vaccine development
process renewed scrutiny of such plans and highlighted transparency issues,
said Daniel Taylor a professor with expertise on issues related to financial
disclosures at the University of Pennsylvania's Wharton School.

 

"There is mounting evidence that these plans are, at best, being used in a
manner in which they were not intended, and at worst, being abused to enrich
corporate insiders," Taylor said.

 

The SEC also said it wants companies to disclose share buybacks one business
day after execution, in contrast to the current quarterly disclosure rule.

 

Investor groups welcomed the changes.

 

"Cleaning up practices that can be a pathway for abusive trades will help
restore trust in our markets,” said Amy Borrus, head of the Council for
Institutional Investors.

 

The SEC also detailed changes to address systemic risks in the $5 trillion
U.S. money market fund sector, which was bailed out for a second time during
the 2020 pandemic-induced turmoil.

 

Critics say the sector enjoys an implicit government guarantee. read more

 

SEC proposed new liquidity requirements, scrapping redemption fees and
restrictions, and adjusting funds' value in line with dealing activity, a
process known as "swing pricing."

 

While the funds industry has conceded changes are necessary, corporate
groups may oppose some of the trading disclosures.

 

"Some of this appears to be overkill," said Howard Berkenblit, partner at
law firm Sullivan and Worcester. "A long cooling-off period and limits on
the number of plans will be less popular and could cause a decrease in use
of these plans."

 

The SEC also outlined a plan to stamp out misconduct via security-based
swaps.

 

Such derivatives were at the center of the Archegos meltdown, which left
Wall Street banks on the other side of the family office's trades with $10
billion in losses.

 

Under the new rule, investors will have to publicly disclose such trades.

 

The Thomson Reuters Trust Principles.

 

 

 

Nissan to build new battery recycling factories in U.S., Europe by 2025
-Nikkei

(Reuters) - Nissan Motor Co Ltd (7201.T) plans to build new battery
recycling factories in the United States and Europe by the end of fiscal
2025, the daily Nikkei reported on Thursday.

 

Nissan hopes that recycling batteries and re-using them in electric vehicles
(EVs) would help lower production costs as the price of rare metals rise,
Nikkei said.

 

The factories would be the company's first battery recycling facility built
outside of Japan, the report added, without specifying the country in Europe
where the factory would be built.

 

Nissan did not immediately respond to a Reuters' request for comment.

 

 

Last month, the company announced its electrification push, committing to
spending 2 trillion yen ($17.53 billion) over five years to increase vehicle
electrification to catch up with rivals in one of the fastest growing
segments for car makers.

 

The car maker said they plan to launch 23 electrified vehicles, including 15
EVs, by 2030.

 

($1 = 114.1100 yen)

 

The Thomson Reuters Trust Principles.

 

 

Intel to invest $7 bln in Malaysia to build new plant

(Reuters) - Intel Corp (INTC.O) will invest 30 billion ringgit ($7.10
billion) in Malaysia over a decade to build new assembly and testing
facilities, Chief Executive Pat Gelsinger said on Thursday.

 

The new advanced packaging facility in Malaysia is expected to begin
production in 2024, he said.

 

 

($1 = 4.2265 ringgit)

 

The Thomson Reuters Trust Principles.

 

 

 

Reddit confidentially files to go public

(Reuters) - Social media platform Reddit said on Wednesday it had
confidentially filed for a proposed initial public offering (IPO) with the
U.S. Securities and Exchange Commission.

 

Reddit, known for its message boards that became the go-to destination for
day traders during this year's meme stock frenzy, was looking at a valuation
of more than $15 billion, Reuters had reported in September. read more

 

The company was valued at $10 billion in a private fundraising round earlier
this year.

 

The San Francisco-based firm had retail investors flocking to its message
boards for tips on trading GameStop Corp (GME.N) and other meme stocks.

 

 

Reddit had roughly 52 million daily active users and over 100,000
communities, or "sub-reddits," as of October last year.

 

Its biggest investors include Fidelity Investments, Andreessen Horowitz,
Sequoia Capital and Tencent Holdings (0700.HK).

 

Reddit did not disclose the number of shares to be offered or the price
range of the IPO in the statement.

 

The Thomson Reuters Trust Principles.

 

 

 

 

 

 

 

 

 

 


 


 


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.

 


 

 


(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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