Major International Business Headlines Brief::: 20 December 2021

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Major International Business Headlines Brief::: 20 December 2021 

 


 

 


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

 


 

 


ü  China artificial intelligence firm relaunches SenseTime $767m listing

ü  Evergrande: China's efforts to contain its Lehman moment

ü  Liz Truss replaces Lord Frost in post-Brexit talks

ü  Demands to delay rises in the state pension age

ü  UK shoppers avoid High Streets amid Omicron fears

ü  Asia stocks, oil prices suffer as Omicron spreads

ü  China urges real estate project acquisitions to aid struggling developers
-state media

ü  Global M&A activity smashes all-time records to top $5 trillion in 2021

ü  Google's YouTube TV reaches deal to restore access to Disney channels

ü  How SAP uses 'social sabbaticals' to retain employees

ü  Tesla's Musk says he will pay over $11 bln in taxes this year

ü  Toyota to halt production at 5 factories in January due to supply chain
issues

ü  International banks in UAE to switch to Mon-Fri work week

ü  China's Kaisa says bondholders have not asked for accelerated repayments
yet

ü  U.S. gasoline prices fall a little or a lot, depending where you are

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

China artificial intelligence firm relaunches SenseTime $767m listing

Chinese artificial intelligence start-up SenseTime Group has relaunched its
$767m (£580m) Hong Kong share sale.

 

The announcement comes a week after the listing was pulled as Americans were
banned from investing in the firm.

 

Washington has accused SenseTime of developing facial recognition software
to determine people's ethnicity, with a focus on identifying ethnic Uyghurs.

 

The company's shares are due to start trading on the Hong Kong Stock
Exchange on 30 December.

 

SenseTime has kept its target of selling 1.5 billion shares in the initial
public offering (IPO) for between HK$3.85 (£0.37; $0.49) and $HK3.99 each,
according to regulatory filings. The final price is due to be announced on
Thursday.

 

The planned listing was postponed last week after the US Treasury Department
placed SenseTime on a list of "Chinese military-industrial complex
companies," which bans Americans from investing in certain firms.

 

On Monday, SenseTime reiterated its denial of the US government's
allegations: "Our group's products and services are intended for civilian
and commercial uses and not for any military application."

 

The company also said that although Washington's investment ban did not
cause any issues for its business operations the resulting lack of American
investors could affect its ability to raise funds.

 

US-China tensions

The listing comes against the backdrop of growing tension between Washington
and Beijing.

 

Last week, the US Congress passed a bill that requires companies to prove
that goods imported from China's Xinjiang region were not produced with
forced labour.

 

The US has accused China of genocide in its repression of the predominantly
Muslim Uyghur minority there.

 

Also last week, the US imposed more restrictions on Chinese drone-maker DJI
and seven other Chinese companies.

 

The Treasury Department put the companies on an investment exclusion list,
banning US citizens from buying and selling shares in them.

 

Earlier this month, the US said it will not send diplomats to the 2022
Winter Olympics in Beijing citing concerns about China's human rights
record.

 

Other nations including the UK and Canada have also joined the diplomatic
boycott.

 

UN experts and human rights groups say more than a million people, mainly
Uyghurs and members of other Muslim minorities, have been detained in recent
years in a vast system of camps in China's far-west region of Xinjiang.

 

Some foreign lawmakers and parliaments have labelled the treatment of
Uyghurs as genocide, citing evidence of forced sterilisations and deaths
inside the camps. China denies these claims and says Uyghur population
growth rates are above the national average.

 

China has denied all allegations of human rights abuses in Xinjiang, saying
its system of "re-education" camps are there to combat separatism and
Islamist militancy in the region.-BBC

 

 

Evergrande: China's efforts to contain its Lehman moment

When the world started to take notice of Evergrande's $300bn (£226bn) debt
crisis earlier this year, some asked whether it would become China's "Lehman
moment".

 

Since then it has become clear that Beijing is handling the situation in a
very different way to how Washington dealt with the bankruptcy of investment
banking giant Lehman Brothers at the start of the global financial crisis in
2008.

 

After Evergrande announced that it may not be able to meet all of its
financial obligations, the crisis-hit firm defaulted on some of its overseas
bonds.

 

It has now reportedly entered a debt restructuring process with Chinese
authorities that may include the sale of some of its founder's personal
assets.

 

"It is opaque but when we speak to our industry contacts in China, no one is
surprised," said Vinesh Motwani of Silk Road Research.

 

Evergrande v Lehman

"The biggest difference between the two is that Evergrande was a train wreck
that everyone saw coming," said Mr Motwani, who was working in the US as an
analyst at Credit Suisse when Lehman collapsed.

 

 

"When the 'three red lines' policy was announced more than a year ago, it
was clear that Evergrande was one of the worst offenders, so the reaction in
China was 'this was a long time coming'."

 

The "three red lines" are a set of debt thresholds that severely limit the
ability of certain property developers to borrow. For decades the sector had
seen uncontrolled borrowing, something the China's central bank, the
People's Bank of China (PBOC), described as "reckless".

 

Evergrande's crisis is a "grey rhino" event, a term used to describe a
slow-moving obvious threat as opposed to a surprise "black swan" occurrence,
according to Rory Green, the Head of China and Asia Research at investment
advisory firm TS Lombard.

 

"The warning about Evergrande has been going around for a very long time so
none of the bondholders should be surprised that they're defaulting," he
said.

 

Another major difference between the collapse of Lehman Brothers and the
Evergrande crisis is that when the US government needed to act, it had to
pass legislation in order to have the authority to intervene but the Chinese
government does not have this problem.

 

By controlling the country's property market through state-owned banks,
Beijing also knows which developers are likely to default - something that
could not have been said about Washington during the subprime mortgage
crisis.

 

At the same time, China is being far more selective with its actions than
the US was during the global financial crisis. Unlike Washington which
bailed out some of the world's biggest banks, China's Communist Party is
taking a more piecemeal approach.

 

"Beijing is like a surgeon operating on a tumour who is thinking 'what do I
need to save?'," said Alicia Garcia Herrero, the chief economist for
Asia-Pacific at investment bank Natixis.

 

Luxury yacht "Event", reportedly owned by Chinese property giant Evergrande
boss Xu Jiayin, also known as Hui Ka Yan in Cantonese, docked at the Gold
Coast Yacht & Country Club in Hong Kong.

 

 

For the Chinese government, it is crucial that Evergrande's day-to-day
operations remain intact. It aims to ensure the company can finish the homes
it is building so that ordinary property buyers are not affected and trust
in the property market is not seriously damaged.

 

As Ms Herrero puts it: "Beijing also needs to be looking at the heart, if it
is still beating. That's people's perceptions of the property sector."

 

So far, this approach seems to have limited the impact on the housing
market, according to Mr Motwani: "Actual property prices are still up
year-on-year. Even where they have fallen month-on-month, they are not down
by double digits."

 

But there are concerns that if prices continue to fall, potential buyers may
put off purchasing new homes - which would further slow down the market.

 

Exterior view of Evergrande Metropolis housing complex in Huaian, Jiangsu
Province of China.

 

 

Experts predict Evergrande's restructuring could take months, if not years,
with little in the way of headline-grabbing announcements as authorities try
to avoid the kind of shocks that hit the global financial system after
Lehman Brothers collapsed.

 

Mr Green points to past big Chinese business failures. Using the implosion
of insurance and financial giant Anbang as an example, he expects
Evergrande's restructuring to be a long process: "Anbang went into
restructuring two years ago and it is still ongoing. Evergrande is much
bigger so it could take years. But in my opinion, the worst funding
condition has passed."

 

"The most likely scenario is for Evergrande to be split into separate units.
It will be the cutting up of the grey rhino and regional banks will be
tasked to deal with those separate units to ensure the stability of the
sector and the economy."

 

Will international investors be scared off?

While Evergrande missing offshore bond interest payments may not have
triggered a financial meltdown as they are mostly held by wealthy overseas
investors, some analysts are concerned about the impact on the Chinese
property sector's reputation.

 

"It definitely hurts the faith of international investors in China's
offshore real estate bonds," said Jackson Chan from financial markets
research platform Bondsupermart.

 

Crucially, it has made it much more expensive for Chinese property
developers to borrow money from international investors.

 

What remains to be seen is how Beijing strikes a balance between continuing
its strict property market policies and the risk of the country's massive
real estate industry losing access to affordable foreign investment.-BBC

 

 

 

Liz Truss replaces Lord Frost in post-Brexit talks

Foreign Secretary Liz Truss will replace Lord Frost as the UK's lead
negotiator with the EU in post-Brexit talks.

 

She will retain her role as foreign minister alongside the new post leading
negotiations over the Northern Ireland Protocol.

 

It follows the resignation of Lord Frost as Brexit minister on Saturday.

 

MP Chris Heaton-Harris will become minister of state for Europe, Downing
Street said.

 

Mr Heaton-Harris will be replaced at the transport department by Wendy
Morton, who was previously at the Foreign Office.

 

Conservative MPs are split over the departure of Lord Frost, who resigned
citing "concerns about the current direction of travel" of the government.

 

The peer told Prime Minister Boris Johnson he had concerns over Covid
policy, urging him to avoid introducing "coercive measures".

 

Some Tory backbench MPs who share Lord Frost's views described his exit as a
"disaster".

 

But others in the party said it offered a chance to "press the reset button"
in negotiations with the EU.

 

She's the foreign secretary, the minister for women and equalities, and now
the lead negotiator with the EU on the Northern Ireland Protocol.

 

This is a monster brief.

 

Particularly noteworthy therefore is the appointment of her deputy, Chris
Heaton-Harris - a former MEP who supported Leave in 2016.

 

His presence may appease some Tory backbenchers who were particularly
unhappy to see Lord Frost go.

 

But will Liz Truss approach negotiations with the EU like her predecessor?

 

It's early days but I've heard initial suggestions that there won't be a
radical departure on policy.

 

However the UK's approach, pre-Truss, was already softening in certain
areas. A source close to the foreign secretary said: "Liz and David are
friends and come at things from the same direction but Liz will put her own
stamp on it and do it the Liz Truss way."

 

But no matter how confident the foreign secretary may feel, she's inheriting
a hard, and politically sensitive, task.

 

line

Ms Truss campaigned for Remain ahead of the 2016 EU referendum, saying
continued membership of the EU was "in Britain's economic interest".

 

She has since said she would back Brexit if a referendum was held again.

 

Maros Sefcovic, the EU's lead post-Brexit negotiator, said he would
"continue to co-operate with the UK in the same constructive spirit on all
important tasks ahead, including the Protocol on Ireland/Northern Ireland".

 

The Northern Ireland Protocol has remained a sticking point since it was
struck between the UK and EU in 2019, with some businesses saying it makes
it more difficult to send goods to Northern Ireland from Great Britain.

 

In a statement on Friday, Lord Frost said of recent talks over gaps between
the UK and EU: "There has been some progress, but not as much, and not as
quickly as we had hoped."

 

Labour's Baroness Chapman said that, while she congratulated Ms Truss on her
appointment, the government must "now stop their needless posturing and work
to reach an agreement".

 

Elizabeth Truss became foreign secretary at the last reshuffle in September
- replacing Dominic Raab.

 

Her rise to one of the great offices of state has seen her navigate a fast
track through Whitehall - taking on her first government job just two years
after first being elected as MP for south west Norfolk in 2010.

 

She began in the education department, before moving to become secretary of
state for environment, food and rural affairs in 2014.

 

She was Lord Chancellor and justice secretary in 2016 - then chief secretary
to the Treasury until 2019 when she became international trade secretary.

 

In this role, Ms Truss helped the UK deliver a number of post-Brexit trade
deals with countries including Japan, Australia and New Zealand.

 

Liz Truss: Fast tracker who landed prime role

line

Lord Frost's resignation came after a major by-election defeat for the
Conservatives, losing the formerly safe seat of North Shropshire to the
Liberal Democrats.

 

In his resignation letter, Lord Frost spoke of disagreement with tightened
coronavirus restrictions in England that saw Mr Johnson endure his biggest
Commons rebellion so far.-BBC

 

 

 

Demands to delay rises in the state pension age

Plans to raise the state pension age from 66 should be shelved because we
are not living as long as previously expected, a new report has suggested.

 

Current plans would see the age at which people are eligible for the state
pension go up to 67 by 2028, and then eventually to 68.

 

Consultant LCP says life expectancy has stalled and no changes should be
made for 30 years.

 

The government has just launched its latest review of the state pension age.

 

At present:

 

The full, new flat-rate state pension (for those who reached state pension
age after April 2016) is £179.60 a week

The full, old basic state pension (for those who reached state pension age
before April 2016) is £137.60 a week. They may also get a Pension Credit
top-up

Men and women are now entitled to claim the state pension from 66 - an age
which had increased steadily until October last year.

 

 

Under government plans state pension age would rise to 67 this decade, and
68 as early as 2039.

 

pension graphic

This is based on calculations that ensure no-one spends more than one third
of their adult life in retirement.

 

However, since those plans were drawn up, official estimates of longevity
have been scaled back, even before the effect of the Covid pandemic.

 

As a result, LCP argues that the move to 67 should not come until 2051, and
the rise to 68 not before the mid-2060s.

 

Such an initial move would benefit 20 million people born in the 1960s,
1970s or early 1980s, but cost the Treasury an estimated £200bn.

 

Steve Webb, partner at LCP and a former pensions minister, said: "The
government's plans for rapid increases in state pension age have been blown
out of the water by this new analysis.

 

"Even before the pandemic hit, the improvements in life expectancy which we
had seen over the last century had almost ground to a halt, but the schedule
for state pension age increases has not caught up with this new world."

 

He said the government's plans should be revisited as "a matter of urgency"
and there was "no case" for another state pension age increase so soon.

 

Earlier this month, the Department for Work and Pensions (DWP) announced
that the next review of the state pension age would start, headed by
Baroness Neville Rolfe.

 

"The government needs to make sure that decisions on how to manage its costs
are, robust, fair and transparent for taxpayers now and in the future. It
must also ensure that as the population becomes older, the state pension
continues to provide the foundation for retirement planning and financial
security," the DWP said.

 

Pensions experts have called for a rethink in the way state pension ages are
calculated.

 

Baroness Ros Altmann, also a former pensions minister, said the current
system helped the healthy and wealthy, but not those likely to die early.

 

"At the moment, the state pension only has flexibility for those who are
healthy and wealthy enough to wait longer. If they start their pension later
they can receive a higher amount. But those in poor health with no private
provision, cannot get any money sooner, even at a reduced rate," she said.

 

Becky O'Connor, head of pensions and savings at Interactive Investor, said:
"The idea of a long, enjoyable retirement seems set to be consigned to the
history books.

 

"Many will have spent much of their working life expecting to retire at 65.
They have been disappointed before and look set to be disappointed again. It
is no wonder today's younger workers have little faith in the state pension
being there for them at all when they stop work, with many thinking they
will end up working forever."-BBC

 

 

 

UK shoppers avoid High Streets amid Omicron fears

UK shoppers chose to avoid High Streets and city centres on the crucial
weekend just before Christmas, amid fears over the Omicron Covid-19 variant.

 

The number of people on High Streets fell by 5.9% on Sunday but rose 4.8% at
retail parks week-on-week, retail analysis firm Springboard said.

 

Springboard's Diane Wehrle, said consumers were "clearly cautious" about
venturing out to the shops.

 

Shoppers were also making quick "in and out" visits, another expert added.

 

Ms Wehrle said, in part, this was due to shoppers trying to get a head start
in buying groceries, while also preferring the "Covid friendly" nature of
retail parks, as they are in the open air, have large stores and can be
easily reached by car.

 

The Springboard figures also showed that 25.2% fewer people visited UK
retail destinations on Sunday, compared to 22 December 2019, the Sunday just
before Christmas that year.

 

However, visitor numbers across all UK destinations on Sunday were 33.2%
higher than on Sunday 20 December 2020, when the UK entered its third
coronavirus lockdown.

 

On Sunday, Health Secretary Sajid Javid told the BBC's Andrew Marr that
further Covid restrictions for England over Christmas could not be ruled
out, due to the rise in new cases.

 

Retailers say people are making quick "in and out" visits to stores for
their Christmas shopping to avoid catching Covid, meaning they are not
spending as much

Consumer expert Kate Hardcastle said that retailers were experiencing
another "crushing blow" this Christmas because consumers were not really
"buying emotionally", in the way they usually did for loved ones in years
prior to the pandemic.

 

"Shoppers are staying warm and dry, already isolating ready for the holiday
at home and grabbing any extras online," she told the BBC.

 

"Whilst shoppers had the intent to buy themselves a better Christmas than
last year, the idea of not being able to spend it with loved ones again is
just too much of a gamble."

 

A key change, Ms Hardcastle said retailers had told her, was that consumers
were "shopping differently" this year.

 

"A big national retailer explained it was getting as many staff on the tills
as possible as people wanted to be in and out," she said.

 

"That's an important point - if we don't dwell in stores our spending will
not be the same and we will not see consumers pick up extras."-BBC

 

 

 

Asia stocks, oil prices suffer as Omicron spreads

(Reuters) - Asian share markets fell and oil prices slid on Monday as
surging Omicron cases triggered tighter restrictions in Europe and
threatened to drag on the global economy into the new year.

 

A seasonal lack of liquidity made for a bumpy start and S&P 500 futures led
the way with a 0.7% drop, while Nasdaq futures shed 0.6%.

 

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS)
slipped 0.4% and Japan's Nikkei (.N225) 0.7%.

 

The spread of Omicron saw the Netherlands go into lockdown on Sunday and put
pressure on others to follow, though the United States seemed set to remain
open. read more

 

"Omicron is set to be the Grinch who stole Europe’s Christmas," said Tapas
Strickland, a director of economics at NAB. "With Omicron cases doubling
every 1.5-3 days, the potential for hospital systems to be overwhelmed even
with effective vaccines remain."

 

While coronavirus restrictions cloud the outlook for economic growth, they
also risk keeping inflation elevated and turning central banks yet more
hawkish.

 

It was notable that Federal Reserve officials were openly talking of hiking
rates as soon as March and of starting to run down the central bank's
balance sheet in mid-2022. read more

 

That is even more drastic than implied by futures , which had been well
ahead of Fed intentions until now. The market has only priced in a 40%
chance of a hike in March, with June still the favoured month for lift off.

 

Such hawkish chatter from the Fed is a major reason long-dated Treasury
yields fell last week as the short-end rose. That left the two-10 year curve
near its flattest since late 2020, reflecting the risk tighter policy will
lead to recession.

 

BofA economists see this risk as reason to be bearish on equities, though
their latest survey of fund managers found just 6% expected recession next
year and only 13% were underweight stocks. Most remain overweight technology
with "long tech" still viewed as the single most crowded trade.

 

They also noted that for 2021, the winners had been oil with a gain of 48%,
REITs at 42%, Nasdaq at 25% and banks with 21%. Losers included biotech with
a drop of 22%, while China also lost 22%, silver 19% and JGBs 10%.

 

It was the best year for commodities since 1996, and the worst for global
government bonds since 1949.

 

Early Monday, yields on U.S. 10-year notes were down at 1.38% and well below
their 2021 top of 1.776%.

 

The Fed's hawkish turn combined with safe-haven flows underpinned the U.S.
dollar index near its best for the year at 96.665 , following a 0.7% jump on
Friday.

 

The euro was languishing at $1.1241 , having shed 0.8% on Friday to threaten
its low for the year at $1.1184. The Japanese yen has safe haven status of
its own and held steady at 113.63 per dollar.

 

Sterling was down at $1.3228 as Omicron worries erased all the gains made
following the Bank of England's surprise rate rise last week.

 

Gold was looking firmer at $1,801 an ounce , having broken a five-week
losing streak last week as equities slipped.

 

Oil prices swung lower amid concerns the spread of the Omicron variant would
crimp demand for fuel and signs of improving supply.

 

Brent fell $1.56 to $71.96 a barrel, while U.S. crude lost $1.43 to $69.43
per barrel.

 

The Thomson Reuters Trust Principles.

 

 

China urges real estate project acquisitions to aid struggling developers
-state media

(Reuters) - China is urging large private and state-owned property companies
to acquire real estate projects from troubled developers to reduce risks
that mounting debt piles will destabilise the economy, the official China
Securities Journal said on Monday.

 

The People's Bank of China (PBOC) and the China Banking and Insurance
Regulatory Commission (CBIRC) recently issued a notice to financial
institutions, urging them to strengthen financial support for such
acquisitions, the newspaper reported.

 

 

Over the past months, Chinese regulators have marginally eased funding curbs
on the real estate sector, to prevent debt risks spreading from struggling
developers including China Evergrande Group (3333.HK) and Kaisa Property
Holdings (2168.HK).

 

Regulators are urging Chinese banks to actively provide lending to fund
acquisitions of projects owned by cash-strapped developers, and avoid
cutting, or withdrawing, loans to these companies, China Securities Journal
reported.

 

 

But only the acquisition of real estate projects, rather than acquiring
stakes in the struggling developers, would be encouraged, the newspaper
said, citing unidentified sources.

 

Meanwhile, developers without financial problems are also being encouraged
to issue bonds to fund such acquisitions, and PBOC is urging financial
institutions to invest in such debt instruments, according to the newspaper.

 

Developers including China Merchants Shekou Industrial Zone Holdings Co
(001979.SZ) plan to issue debt instruments via the interbank market in the
near term to fund mergers and acquisitions, local media has reported.

 

The Thomson Reuters Trust Principles.

 

 

 

Global M&A activity smashes all-time records to top $5 trillion in 2021

(Reuters) - Global merger and acquisition (M&A) activity shattered all-time
records in 2021, comfortably erasing the high-water mark that was set nearly
15 years ago, as an abundance of capital and sky-high valuations fuelled
frenetic levels of dealmaking.

 

The value of M&A globally topped $5 trillion for the first time ever, with
volumes rising 63% to $5.63 trillion by Dec. 16, according to Dealogic data,
easily surpassing the pre-financial-crisis record of $4.42 trillion in 2007.

 

"Corporate balance sheets are incredibly healthy, sitting on $2 trillion of
cash in the U.S. alone -- and access to capital remains widely-available at
historically low costs," said Chris Roop who co-heads North America M&A at
JPMorgan (JPM.N).

 

Technology and healthcare, which typically account for the biggest share of
the M&A market, led the way again in 2021, driven partly by pent-up demand
from last year when the pace of M&A activity fell to a three-year-low due to
the global financial fallout from the COVID-19 pandemic.

 

Companies rushed to raise funds from stock or bond offerings, large
corporates took advantage of booming equity markets to use their own stock
as acquisition currency, while financial sponsors swooped on publicly listed
companies.

 

Moreover, robust corporate earnings and an overall bright economic outlook
gave chief executives the confidence to pursue large, transformative deals,
despite potential headwinds such as inflationary pressures.

 

"Strong equity markets are a key driver of M&A. When stock prices are high,
that usually corresponds with a positive economic outlook and high CEO
confidence," said Tom Miles, co-head of Americas M&A at Morgan Stanley
(MS.N).

 

Overall deal volumes in the United States nearly doubled to $2.61 trillion
in 2021, according to Dealogic. Dealmaking in Europe jumped 47% to $1.26
trillion, while Asia Pacific rose 37% to $1.27 trillion.

 

"While China cross-border activity has been modest, corporates from other
Asian countries have stepped up to buy global assets. We expect to see this
trend continue, especially for deals in Europe and the United States," said
Raghav Maliah, Goldman Sachs' (GS.N) global vice chairman of investment
banking.

 

A number of the year's biggest transactions -- AT&T Inc's (T.N) $43 billion
deal with Discovery Inc (DISCA.O) and the $34 billion leveraged buyout of
Medline Industries Inc -- were announced during the first half of the year.
[nL3N2N4326} read more

 

But the pace of dealmaking showed no signs of slowing in the second half.

 

On Nov. 21, KKR (KKR.N) made a bid approach for Italy's biggest telecoms
operator, Telecom Italia (TLIT.MI), valuing it at roughly $40 billion
including net debt in what would rank as the biggest ever private equity
buyout in Europe should it go ahead, and the second largest globally. read
more

 

Easy availability of financing drove private equity deals, with volumes more
than doubling from last year to a record $985.2 billion, according to
Dealogic.

 

"Investors are deploying cash at an unprecedented pace which means that, on
a global basis, asset valuations have peaked to historic levels," said Luigi
de Vecchi, chairman of Europe, Middle East and Africa banking capital
markets advisory at Citigroup (C.N).

 

"The question is whether the prices being paid now will continue to make
sense over time."

 

Pressured to make their businesses greener and more climate-friendly,
company executives have been hunting for targets with the right climate
credentials.

 

"Along with technology and digital transformation, sustainability is here to
stay and is a key focus for most boardrooms," said Citi's de Vecchi.

 

After a year of lockdowns, Wall Street's top investment banks pushed their
dealmakers to meet more clients in person to win lucrative mandates to merge
companies or defend them against raids by activist investors.

 

"This year we're set to exceed $100 billion in global investment banking
fees," said Berthold Fuerst, Deutsche Bank's (DBKGn.DE) global co-head of
M&A.

 

"There has been unprecedented demand for almost every single investment
banking product," he said.

 

After the record-breaking year, bankers are now anticipating a bumper bonus
round in early 2022.

 

Breaking up corporate empires and conglomerates also proved to be a
lucrative business for investment banks.

 

In the second half of the year, General Electric , Johnson & Johnson (JNJ.N)
and Toshiba (6502.T) were among large corporates that announced plans to
split up their core businesses and spin off several units. read more

 

The dealflow is showing no sign of slowing down as companies and investors
rush to sign deals ahead of possible interest rate hikes.

 

Borrowing costs are widely expected to inch up in the coming months with the
U.S. Federal Reserve indicating it will increase rates next year to combat
soaring inflation. Nonetheless, bankers expect dealmaking activity to remain
robust.

 

"I don't think upward movement in interest rates alone is going to be the
catalyst that sidetracks the M&A market," said Morgan Stanley's Miles.

 

Top deal advisers are concerned about the fallout from the U.S. Federal
Trade Commission's (FTC) increasingly adversarial stance towards merger
activity over the past year, with Nvidia's proposed $40 billion takeover of
British chip designer Arm among the latest deals it is trying to block. read
more

 

"The FTC and Department of Justice are already taking more time than ever
before to evaluate deals, so companies pursuing M&A must be ready to discuss
their deals with regulators up front, at any time," said Krishna
Veeraraghavan, an M&A partner at law firm Paul, Weiss, Rifkind, Wharton &
Garrison LLP.

 

He added that companies would need to wait longer to get deals through - up
to a year and a half versus the usual 6-12 months - and should go into a
merger "willing to litigate".

 

For all the headwinds, the year ahead still offers plenty of opportunities
as the market for special purpose acquisition companies (SPACs) has recently
reopened, with new listings in Europe, after coming under regulatory
scrutiny in the United States.

 

"With private equity and with the dry powder in the SPAC world we expect the
momentum to continue well into 2022," said Philipp Beck, head of EMEA M&A at
UBS (UBSG.S).

 

The Thomson Reuters Trust Principles.

 

 

Google's YouTube TV reaches deal to restore access to Disney channels

(Reuters) - Alphabet Inc's (GOOGL.O) YouTube began restoring access to Walt
Disney Co (DIS.N) channels on its platform on Sunday, after the companies
reached a distribution agreement to end a two-day blackout.

 

YouTube tweeted that "we've reached a deal with Disney and have already
started to restore access to channels like ESPN and FX."

 

 

Neither company disclosed the financial terms of deal.

 

YouTube warned last week that it would only renew its agreement with Disney
if the company offered "equitable terms" and announced that it was cutting
the monthly price for YouTube TV by $15, from $64.99 to $49.99.

 

 

On Sunday, YouTube said a monthly subscription had reverted to $64.99, but
affected users would receive a one-time $15 discount.

 

"We appreciate Google's collaboration to reach fair terms that are
consistent with the market," Disney said in a statement on Sunday.

 

YouTube earlier this month struck a multi-year pact with streaming platform
Roku Inc (ROKU.O) to distribute YouTube's flagship app and TV service,
ending a months-long battle over accusations of anti-competitive conduct.
read more

 

The Thomson Reuters Trust Principles.

 

 

 

How SAP uses 'social sabbaticals' to retain employees

(Reuters) - The pandemic era upended the world in all sorts of ways, but one
of the most fascinating is the so-called 'Great Resignation.' Employees are
moving out of their previous roles in numbers not seen for decades.

 

Here is an idea to keep employees challenged and engaged, instead of heading
elsewhere: the 'social sabbatical.'

 

The brainchild of enterprise software firm SAP (SAPG.DE) – inspired by
others with similar programs, like IBM (IBM.N) – social sabbaticals take
selected employees away from their 9-to-5 roles and throw them an intriguing
challenge somewhere around the globe while working with a team to solve real
problems.

 

Heading up that program is SAP's global head of corporate social
responsibility, Alexandra van der Ploeg. She spoke with Reuters about the
value of injecting purpose and energy into work. Edited excerpts are below.

 

Q: What is the history of social sabbaticals?

 

A: We started with one small pilot program in 2012 to test the waters. It
hit a nerve, because after that first year it started expanding rapidly.

 

To date, over 1,300 employees have participated in 51 countries, partnering
with almost 500 nonprofit organizations and social enterprises, impacting 6
million lives.

 

Q: How does a social sabbatical work?

 

A: It's an immersive program, in that you go onsite for four weeks straight.
You take that time off from your regular job, work on a concrete strategic
challenge that a nonprofit organization is facing and provide concrete
deliverables that truly drive impact.

 

Q: Describe the experience?

 

A: It is a pressure-cooker environment. You are taking a group of employees,
typically around 12, and sending them to an emerging market they have never
been to before.

 

You are immersing them in an organization they don't know, and putting them
in a team environment, with incredibly high diversity of nationalities and
age and levels of experience.

 

Q: Can you give an example?

 

A: In India, we worked with a foundation with a mission to bridge the
digital divide and facilitate the adoption of technology in education. They
needed expertise to develop a learning platform, to help youth learn at
their own pace.

 

This was pre-COVID, so the timing was ideal: not only did they get the right
input to make sure they had a solid digital platform, but when COVID came,
they were perfectly set up to move learning content from physical
environments into virtual ones.

 

Q: Do you advise other companies on how to set up social sabbaticals of
their own?

 

A: We learned a lot from companies that had been working with models like
this prior to us, like IBM, which was one of the forerunners. In turn, we
now engage with a lot of other companies to provide advice in setting up
their own programs.

 

What we typically do is invite other companies to join us, and leave some
open slots for them. Direct exposure to the program, so they can experience
it for themselves, shows the true value of what we do.

 

Q: How did COVID affect this program?

 

A: We had to pivot. Social sabbaticals were suspended, but we offered
virtual pro bono consulting models with great success.

 

We are optimistic that we will restart the program in 2022 - maybe not
full-blown across the whole portfolio, because that might be too much, but a
conscious re-entry where we can test the waters.

 

Q: What advice would you have for other companies about starting their own
social sabbaticals?

 

A: Don't get scared about perceived barriers and hurdles, because they are
all manageable. They key is to start small, and try testing it out first.

 

Make sure the learning that is taking place aligns with your leadership
principles and behaviors because that varies from company to company. You
need to get some real-world experience with a program like this, and you
can't do that by sitting in an office somewhere and designing something in
theory.

 

Q: How does this program affect employees when they come back?

 

A: It has significant impact on employee engagement. We have seen the
figures on our end: there is higher retention among social sabbatical
participants.

 

When employees come back, they are more motivated to do their job and look
for ways to incorporate that learning into their own business environment.
They come back inspired about what they can do to improve things.

 

Any company that is serious about purpose and sustainability needs to give
their employees the opportunity to experience on-the-ground what that really
means. The social sabbatical does that.

 

The Thomson Reuters Trust Principles.

 

 

 

Tesla's Musk says he will pay over $11 bln in taxes this year

(Reuters) - Electric-car maker Tesla Inc's (TSLA.O) Chief Executive Officer
Elon Musk said on Sunday on Twitter that he will pay more than $11 billion
in taxes this year.

 

Earlier this week, Democratic U.S. Senator Elizabeth Warren took to Twitter
to say that Musk should pay taxes and stop "freeloading off everyone else"
after Time magazine named him its "person of the year".
(https://bit.ly/3EbW6eo) read more

 

Musk responded by saying that he "will pay more taxes than any American in
history this year".

 

Musk is the world's richest person and his company Tesla is worth about $1
trillion. Over the last few weeks, Musk has sold nearly $14 billion worth of
Tesla shares.

 

The Thomson Reuters Trust Principles.

 

 

 

Toyota to halt production at 5 factories in January due to supply chain
issues

(Reuters) - Toyota Motor Corp (7203.T) said on Monday it would suspend
production at five domestic factories in January due to supply chain issues,
chip shortages and the COVID-19 pandemic.

 

Japan's top automaker said that the stoppage at the factories will affect
about 20,000 vehicles, but won't impact their annual target to manufacture
nine million vehicles.

 

 

Last week, Toyota said it was projecting a bigger reduction in vehicle
production in North America in January to 50,000 units due to supply chain
issues.

 

The Thomson Reuters Trust Principles.

 

 

 

International banks in UAE to switch to Mon-Fri work week

(Reuters) - Deutsche Bank AG (DBKGn.DE), JPMorgan Chase & Co (JPM.N) and
Societe Generale SA (SOGN.PA) are changing to a Saturday-Sunday weekend from
the New Year in the United Arab Emirates (UAE) which is aligning its working
week with most global markets.

 

The German bank will from Jan. 3 operate Monday-Friday in the Sunni
Muslim-ruled country, instead of the current Sunday-Thursday as is common
around the Middle East, a source familiar with the matter told Reuters.

 

 

Wall Street-based JPMorgan is also adapting the same week in UAE, along with
flexible practices such as a break for Muslim prayers on Fridays, the bank
said in a statement.

 

France-based Societe Generale's spokesperson said it is implementing
Saturday-Sunday weekend from Jan. 2 in its Dubai and Abu Dhabi entities,
according to an emailed statement.

 

 

Bloomberg News was the first to report on Sunday that JPMorgan, Deutsche
Bank, Bank of America Corp (BAC.N) and Societe Generale will switch to a
Saturday-Sunday weekend in the UAE.

 

Representatives of Bank of America did not immediately respond to a Reuters
request for comment.

 

The banks' move comes after the UAE said on Dec. 7 that it would shift to a
four-and-a-half day week with a Saturday-Sunday weekend from the start of
next year. read more

 

Private companies are, however, free to choose their own working week in the
oil-producing Gulf state which is the region's commercial, trade and tourism
hub.

 

Over the past year, the UAE has taken measures to make its economy more
attractive to foreign investment and talent at a time of growing economic
rivalry with Saudi Arabia.

 

The Thomson Reuters Trust Principles.

 

 

 

China's Kaisa says bondholders have not asked for accelerated repayments yet

(Reuters) - Kaisa Group (1638.HK) said on Monday it has not received any
notice from bondholders to accelerate repayments yet as the embattled
Chinese property developer has not repaid a $400 million offshore bond.

 

The firm said it also did not pay the coupon totalling $105 million for
notes due in 2023, 2025, and 2026, with the grace period for the first two
already expired.

 

The non-payment on the $400 million maturity on Dec. 7 triggered
cross-default provision on all its $12 billion offshore bonds and prompted a
downgrade to "restricted default" by Fitch Ratings.

 

Kaisa is the second-largest dollar bond issuer among China's property
developers after China Evergrande Group (3333.HK), which has more than $300
billion in liabilities.

 

The fate of Kaisa, Evergrande and other indebted Chinese property companies
has gripped financial markets in recent months amid fears of knock-on
effects, with Beijing repeatedly seeking to reassure investors. read more

 

Shares of Kaisa tumbled 8.7% to HK$0.84 in the early session on resumed
trading, a record low, after a suspension since Dec. 8.

 

Kaisa said it was still in talks with bondholders over a debt restructuring
deal and it had hired Houlihan Lokey as its financial adviser and Sidley
Austin as a legal adviser.

 

Kaisa was in talks with Lazard, the adviser of a group of offshore
bondholders, to sign a non-disclosure agreement (NDA), Reuters has reported,
laying the groundwork for further discussions on forbearance and financing
solutions. read more

 

The group planned to use up to $1 billion in order to buy bad loans from the
Chinese developer's onshore creditors, sources said last week. read more

 

In the Monday filing, the developer added after significant decline in sales
in October and November, it expects the confidence of potential property
purchasers to remain subdued in December.

 

The Thomson Reuters Trust Principles.

 

 

 

U.S. gasoline prices fall a little or a lot, depending where you are

(Reuters) - U.S. gasoline prices have dropped in time for the major holiday
driving season, but not everyone around the country is feeling the same
relief at the pump.

 

Fuel prices were one of the key factors in U.S. inflation that soared to
multi-decade highs in October, dampening President Joe Biden's popularity
and sparking calls for investigations into potential fuel market
manipulation. The U.S. is the biggest consumer of gasoline worldwide, and
more than 100 million Americans are going to hit the roads this holiday
season.

 

Since prices peaked at $3.42 a gallon, the average retail price of U.S.
gasoline has been retreating, now down 11 cents at $3.31 as of Friday.
November's peak was not an all-time high for retail gasoline, but the 60%
increase from the year-ago coronavirus-affected trough was still alarming.

 

Some areas of the country have seen a swifter decline in prices than others.
Part of that relates to additional additives required by states like
California, geographic isolation from supply, and weather events that
hampered delivery to the Pacific Northwest. (GRAPHIC: Nationwide gas prices)

 

In Michigan and Indiana, the average retail price is now down more than 25
cents. The average price of a gallon of gasoline in Michigan is currently
$3.152, down 23 cents from a month ago.

 

"Seeing how some stations posted prices 60 cents lower while others only
fell about 15 cents, you can tell there was some profit taking," said
Patrick DeHaan, head of petroleum fuel analysis at GasBuddy, speaking about
prices in Michigan, his home state.

 

In the west coast, where crude oil supply to U.S. refineries was affected by
historic flooding in British Columbia earlier this month, prices have hardly
moved.

 

The average price of gasoline in California as of last week was $4.67 a
gallon, only two cents per gallon less a month ago. In Oregon, it was $3.774
a gallon, just one cent cheaper than a month ago.

 

The main reason gasoline prices are lower has been the falling price of
crude oil, which makes up more than half of the price of gasoline.

 

Crude prices are still up about 50% from last year as demand has rebounded
while supply has been slower to return to the market. Since peaking at about
$86 per barrel, the Brent crude benchmark has dropped to about $73 a barrel
- a 15% decline.

 

That's due to the U.S. release of strategic reserves to cool prices and
expectations of more supply in coming months, along with demand uncertainty
linked to the new Omicron variant of the coronavirus.

 

The Biden administration on several occasions raised concerns about the gap
between wholesale costs and prices at the pump. That gap peaked at $1.14 in
November, significantly higher than the five-year average of 85 cents; as of
last week that gap had dipped to 93 cents.

 

STATION OWNERS STICK WITH PRICES

 

Gasoline industry sources interviewed say the market's volatility has made
filling station owners wary of lowering prices that they'd only have to
raise again later.

 

In some states, prices vary widely. Not all retail stations adjusted prices
after wholesale gasoline prices dropped, said Sal Risalvato, executive
director of New Jersey's Gasoline, C-Store, and Automotive Association.

 

He said some association members were concerned about lower prices after
having refilled inventories at a higher cost, potentially exposing them to
losses. The average price of gasoline in New Jersey last week was $3.413,
only 4 cents lower than a month ago.

 

"Some of them might have lost $2,400, which is not a small amount for a
station," he said.

 

Overall, prices may not fall much further given surging consumer demand,
which has exceeded pre-pandemic levels. AAA forecasts more than 100 million
Americans will be on the roads during the holiday season - a 28% increase
from 2020's COVID-affected period.

 

"In theory, gasoline prices should continue to decline but I don't think
we'll see a 25 cent drop," said Matt Smith, lead oil analyst at Kpler.

 

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.

 


 

 


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<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

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