Major International Business Headlines Brief::: 29 December 2021

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Major International Business Headlines Brief::: 29 December 2021 

 


 

 


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

 


 

 


ü  Boeing 737 Max: Indonesia lifts ban after 2018 Lion Air crash

ü  UK cost of living squeeze in 2022, says think tank

ü  Riot Games to pay $100m in discrimination case

ü  Vinyl sales soared again in 2021, thanks to Abba

ü  UK air travel sees huge slump in 2021 due to Covid

ü  Tesla's Musk exercises all of his stock options expiring next year

ü  Delta, Alaska cancel hundreds of flights due to bad weather, Omicron
cases

ü  Asia shares slip as investors ready for end of 2021

ü  Tsinghua Unigroup expects strategic investment in place by end of March

ü  China's Didi plans Hong Kong 'listing by introduction', picks banks
-sources

ü  Oil prices climb again as U.S. inventories fall

ü  German finance watchdog fines Deutsche Bank for EURIBOR controls

ü  Foxconn to restructure management at India iPhone plant

ü  Malaysian securities regulator charges Serba Dinamik, seeks arrest of CEO

ü  Dollar firms in soft holiday trading, outlook bullish

ü  Egypt: All EGX Indices Up, Benchmark Increases 0.54 Pct

ü  Rwanda: World Bank Regional Boss Optimistic On Rwanda's Road to Economic
Recovery

ü  Kenya: Octagon's Financial Literacy Training to Benefit 1,500 Students.

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Boeing 737 Max: Indonesia lifts ban after 2018 Lion Air crash

Indonesia has lifted a ban on the Boeing 737 Max, more than three years
after the Lion Air disaster that saw the loss of all 189 people on board.

 

The plane maker saw its best-selling aircraft grounded globally after a
deadly crash in March 2019 involving an Ethiopian Airlines 737 Max.

 

On Monday, Ethiopian Airlines said it will resume such flights in February.

 

The announcements come months after the aircraft returned to service in the
US and Europe.

 

More than 180 countries now allow the use of the 737 Max, with Australia,
Japan, India, Malaysia and Singapore lifting their bans this year.

 

Indonesia's transport ministry said in a statement that the lifting of the
ban would be effective immediately, and that it follows regulators' checks
of changes made to the aircraft's systems.

 

The ministry also said that airlines must follow airworthiness directives
and inspect their planes before they can fly the 737 Max again, adding that
government officials would also inspect the planes.

 

'Boeing played Russian roulette with people’s lives'

Boeing faces fine for plane 'designed by clowns'

Lion Air, which operated 10 such planes before the ban, did not immediately
respond to a request for comment from the BBC.

 

Indonesia's national flag carrier Garuda said it had no plans to reintroduce
the plane to its fleet as it focuses on debt restructuring.

 

The state-controlled firm, which operated just one 737 Max before the plane
was grounded, has said it aims to cut its fleet of aircraft from 142 to 66
as part of its turnaround plan.

 

On 29 October 2018, Lion Air Flight 610 crashed into the Java Sea 13 minutes
after taking off from Jakarta's Soekarno-Hatta International Airport,
killing all 189 passengers and crew.

 

Less than five months later, Ethiopian Airlines Flight 302, a Boeing 737 Max
on its way to Kenya, crashed six minutes after leaving Ethiopia's capital
Addis Ababa, killing all 157 people on board.

 

"We have taken enough time to monitor the design modification work and the
more than 20 months of rigorous rectification process... our pilots,
engineers, aircraft technicians, cabin crew are confident on the safety of
the fleet," Ethiopian Airlines' chief executive Tewolde Gebremariam said in
a statement about resuming 737 Max flights.-BBC

 

 

 

UK cost of living squeeze in 2022, says think tank

Millions of families are facing a "year of the squeeze" in 2022, a think
tank has warned.

 

The Resolution Foundation predicts higher energy bills, stagnant wages and
tax rises could leave households with a £1,200 a year hit to their incomes.

 

Its report highlights the rise in the energy price cap and National
Insurance contributions from April.

 

The government says it has put £4.2bn in place to support families.

 

According to the Resolution Foundation, millions of families are facing a
"cost-of-living catastrophe" next year.

 

It says a 1.25% increase in National Insurance contributions will cost the
average household £600 a year while the higher energy bills cap is expected
to add an additional £500 to spending. Both will come into force in April.

 

The impact of the failure of firms in energy sector would see another £100
added to energy bills.

 

In recent months, wholesale gas prices have risen to unprecedented levels.
Last week, they hit a new record of 450p per therm, which experts think
could take average annual gas bills to about £2,000 next year.

 

Meanwhile, the cost of living in the UK surged by 5.1% in the 12 months to
November - the highest increase in 10 years - Office for National Statistics
data showed.

 

Inflation is set to peak at 6% in the spring and the Resolution Foundation
warned that real wage growth, which was flat in October, "almost certainly
started falling last month and is unlikely to start growing again until the
final quarter of 2022".

 

Resolution Foundation chief executive Torsten Bell, said: "The overall
picture is likely to be one of prices surging and pay packets stagnating."

 

He said Chancellor Rishi Sunak could face increased pressure to take action
to alleviate his economic plan set out in the Autumn Budget.

 

The report by the foundation says that poorer families are going to be the
worse hit by the "year of the squeeze", as they spend a higher proportion of
their income on energy.

 

A government spokesman said its help included reducing the Universal Credit
taper, as well as measures to assist with bills, including cold weather
payments and a freeze in alcohol and fuel duty.-BBC

 

 

Riot Games to pay $100m in discrimination case

Riot Games, the studio best known for League of Legends, has agreed to pay
$100m (£74.3m) to settle a 2018 class-action gender discrimination case.

 

The settlement will "remedy violations against approximately 1,065 women
employees and 1,300 women contract workers", California's Department of Fair
Employment & Housing (DFEH) wrote.

 

DFEH said the firm engaged in "systemic sex discrimination and harassment".

 

Riot Games said it must "take responsibility for the past".

 

The company will pay $80m (£59m) to members of the class action suit and
about $20m (£15m) will cover legal costs.

 

The 2018 case followed investigations by the Los Angeles Times and the news
website Kotaku.

 

According to the original complaint against the company, Riot was accused of
fostering a "bro culture" and faced a range of allegations.

 

These included that women had been sexually objectified, with an email chain
that rated the company's "hottest women employees", and that unsolicited
images of male genitalia had been shown to workers by their bosses and
colleagues.

 

Industry problem

As part of the settlement, Riot agreed to workplace reforms, independent
expert analysis of its pay, hiring, and promotion practices, and to be
monitored for instances of sexual harassment and "retaliation" at its
California offices for three years.

 

The company must also set aside $18m (13.2m) to fund diversity, equity and
inclusion programmes and create 40 full-time positions in engineering,
quality assurance or art-design roles for its former contract workers.

 

DFEH Director Kevin Kish wrote that, if accepted by the court, the
settlement would lead to lasting change at Riot Games and "send the message
that all industries in California, including the gaming industry, must
provide equal pay and workplaces free from discrimination and harassment".

 

Riot had initially agreed to settle the case for $10m in 2019, but the DFEH
and another agency had blocked the deal arguing that the amount to which
victims were entitled was much higher.

 

The company said it had to face the fact that it hadn't always lived up to
its values, telling the Washington Post: "While we're proud of how far we've
come since 2018, we must also take responsibility for the past".

 

"We hope that this settlement properly acknowledges those who had negative
experiences at Riot."

 

In a letter to staff, published online, Riot's executive team said the
settlement was, "the right thing to do, for both the company and those whose
experiences at Riot fell short of our standards and values".

 

The company told the BBC that since 2018 it had made improvements across the
workplace, including hiring its first chief people officer and its first
chief diversity officer, rewriting its values, mandating new training
programmes and enlarging its diversity and inclusion team.

 

Riot Games is not the only prominent games firm to face questions about
workplace culture.

 

The DFEH is also taking action against Activision Blizzard, the company
behind the games World of Warcraft, Overwatch and Call of Duty.

 

Activision Blizzard recently reached an $18m (£13.2m) settlement with the US
Equal Employment Opportunity Commission (EEOC) over claims of sexual
discrimination and harassment.-BBC

 

 

Vinyl sales soared again in 2021, thanks to Abba

Albums by Adele, Abba and Ed Sheeran helped vinyl sales in the UK top five
million for the first time since 1991.

 

Almost a quarter of the albums bought this year (23%) were on vinyl, with
Abba's Voyage the biggest-seller.

 

It marks the format's 14th consecutive year of growth, with sales up by 8%
on 2020.

 

Sales of CDs continued to fall. Just 14 million discs were bought - the
lowest figure since 1988, four years after the format was introduced in the
UK.

 

However, the drop-off in CD sales was smaller than in recent years, with
sales decreasing by 12%, compared to nearly a third in 2020.

 

That's partly because artists like Abba and Adele appeal to older listeners,
who still prefer the format.

 

Music industry body the BPI said it hoped that the reduced demand for CDs
was "bottoming out" after years of decline.

 

Vinyl shortage

The vinyl resurgence continued in 2021 despite serious delays in
manufacturing, caused by a combination of Covid, supply-chain issues and
labour shortages, as well as a scarcity of raw materials like PVC and paper
products.

 

One report blamed Adele for further clogging up the world's vinyl plants
with pre-orders for her new album, 30 - but her order of 500,000 records
only accounted for 0.3% of the LPs pressed this year. (A bigger problem is
that demand for vinyl outstrips manufacturing capacity by a factor of 2:1).

 

Adele's 30 has achieved the majority of its sales on physical formats,
bucking industry trends

In the end, Adele's return was eclipsed by that of Abba, who took the world
by surprise in September by announcing their first album of new material in
more than 40 years.

 

Titled Voyage, it shifted 29,891 copies in its first week on sale, following
an extensive pre-order campaign that gave fans early access to tickets for
the Swedes' virtual concerts next year.

 

Voyage duly became the fastest seller on vinyl this century, according to
the Official Charts Company.

 

Best-selling vinyl albums 2021. Predicted figures based on sales to date.  .

Cassette sales, while representing a tiny fraction of the music market, also
increased for a ninth consecutive year.

 

Final figures for 2021 are likely to show that around 190,000 tapes were
purchased in the past 12 months, up by around 20% year on year.

 

It's the format's most successful year since 2003, when Now 54 was the
year's biggest seller on cassette.

 

The revival arguably has more to do with marketing than any real appetite
for the format, however.

 

Most artists now offer signed cassettes on their official website,
frequently in bundles with CD or vinyl copies of the same album.

 

Fans often have no choice but to accept the cassette as part of the bundle;
and each copy of the record handily counts as a separate sale on the
official chart.

 

Best-selling cassettes 2021. Predicted figures based on sales to date.  .

Sales of physical formats are dwarfed by the popularity of streaming, which
accounted for 80.6% of music consumption in 2020.

 

Even so, having an album available on CD and vinyl plays a pivotal role in
artists reaching number one.

 

Adele's 30, for example, has seen 75% of its chart sales attributable to
physical format purchases during its five-week reign at the top of the
charts.

 

Despite that, streaming's share of the market is thought to have increased
further this year.

 

The BPI will report that data, along with the year's final music consumption
figures, on 4 January,-BBC

 

 

UK air travel sees huge slump in 2021 due to Covid

The Covid pandemic triggered a 71% drop in international flights in and out
of the UK in 2021, says a new report.

 

About 406,060 international flights operated from the UK this year, compared
with 1,399,170 in 2019 before travel was restricted.

 

UK domestic flights also fell by nearly 60%, said aviation analytics firm
Cirium.

 

Budget airline Ryanair remained the largest carrier in the UK, with more
than 100,000 UK flights in 2021.

 

Rival airline easyJet followed closely behind, with more than 82,000 flights
in total, according to data collected by Cirium.

 

The busiest international route was between London's Heathrow and New York's
JFK.

 

This was despite the US only opening its borders to UK travellers in
November.

 

American travellers have been able to travel to the UK since 28 July.

 

Short-haul flights proved to be the most popular, with eight out of the 10
most popular routes being to Europe.

 

London Heathrow to Amsterdam, Paris Charles de Gaulle and Frankfurt came in
third, fourth and fifth place respectively.

 

Meanwhile, the UK's busiest domestic route was between Land's End to St
Mary's in the Isles of Scilly.

 

The 31-mile route saw about 2,330 one-way flights between January and
December 2021.

 

Following a sharp rise in Covid-19 cases throughout the UK due to the
Omicron variant, the outlook for 2022 remains uncertain.

 

The uncertainty has already sparked a rise in cancellations over the festive
period because of concerns over potential further restrictions.-BBC

 

 

 

Tesla's Musk exercises all of his stock options expiring next year

(Reuters) - Tesla Inc (TSLA.O) Chief Executive Elon Musk has exercised all
of his options expiring next year, signaling an end to his stock sales that
triggered a fall in the share price of the world's most valuable carmaker.

 

Musk said last week that he would reach his target of selling about 10% of
his stake in Tesla "when the 10b preprogrammed sales complete," likely
referring to his options-related stock sales. read more

 

Since early November, he has exercised options expiring next year and sold a
portion of Tesla stock to pay tax under a "rule 10b5-1" trading plan set up
in September.

 

With the option exercise on 1.6 million shares on Tuesday, he has exercised
all of the options on 22.8 million shares, which are due to expire in
August. He also sold 934,090 shares for $1.02 billion to pay for taxes, the
filings showed.

 

"This rule 10b5-1 trading plan was completed on December 28, 2021," Tesla
said in filings on Tuesday.

 

Tesla shares lost about a quarter of their value after Musk in November
asked his followers on Twitter if he should sell 10% of his holdings. They
have rebounded to $1,088.47, but are still below the record closing high of
$1,229.91 in November.

 

CLOSE TO 10% TARGET

 

Musk has so far offloaded 15.7 million shares in Tesla, coming close to the
10% stake the billionaire has pledged to sell.

 

Out of the 15.7 million shares, 10.3 million were related to the options
exercise. Musk sold an additional 5.4 million, cashing in on Tesla's strong
rally.

 

He has offloaded $16.4 billion worth of shares since early November when he
said he would sell 10% of his Tesla stocks if Twitter users agreed.

 

The Twitter poll came two days after Tesla shares hit a record high
following a rally sparked by an order for Tesla cars from rental company
Hertz.

 

The Thomson Reuters Trust Principles.

 

 

 

Delta, Alaska cancel hundreds of flights due to bad weather, Omicron cases

(Reuters) - U.S carriers Delta Air Lines (DAL.N) and Alaska Air Group
(ALK.N) cancelled hundreds of flights on Tuesday due to adverse weather
conditions and rising cases of the Omicron variant.

 

Delta said it expected to cancel more than 250 of 4,133 scheduled flights on
Tuesday, while Alaska cancelled 170 flights across its network and warned of
more cancellations and delays throughout the week.

 

Total cancellations as of 14.00 ET (19.00 GMT) within, into, or out of the
United States stood at 1,034, with 2,694 flights delayed, marking a fifth
day of flight cancellations.

 

Delta said it was working to re-route and substitute some planes.

 

Alaska Airlines said as it heads into Wednesday and Thursday, it is
proactively thinning Seattle departures by about 20% to allow for additional
time to de-ice aircraft, a requirement during winter weather.

 

Despite the ongoing disruption, the U.S. Centers for Disease Control and
Prevention said on Tuesday it is not currently considering recommending a
vaccine mandate for domestic flights, responding to a suggestion the
previous day by Dr. Anthony Fauci, the government's top infectious disease
expert. 

 

"Right now, what we're talking about is ways to get people vaccinated.
Certainly domestic flights has been a topic of conversation, but that is not
something we're revisiting right now," CDC Director Rochelle Walensky said
on National Public Radio when asked about Fauci's comment.

 

Walensky said the CDC considers all potential policy and it strongly
recommends vaccinations, noting that unvaccinated people have a much higher
chance of being hospitalized from COVID-19.

 

U.S. carriers also canceled more than 1,000 flights on Monday after
grounding thousands of planes over the Christmas holiday weekend as airlines
struggled with staff shortages from COVID-19 infections and bad weather in
parts of the country. read more

 

Snowy weather in the Pacific Northwest on Monday contributed to the
cancellation of more than 110 flights scheduled to land at Seattle-Tacoma
Airport.

 

Rising infections causing pilots and cabin crew to quarantine have also
forced many flight cancellations. read more

 

The average number of new COVID-19 cases in the United States has risen 55%
to over 205,000 per day over the last seven days, according to a Reuters
tally.

 

The CDC said on Monday it was shortening the recommended isolation time for
infected Americans to five days from 10 days previously, if they are
asymptomatic. The move could help airlines and other businesses mitigate
staff shortages. read more

 

The Thomson Reuters Trust Principles.

 

 

 

Asia shares slip as investors ready for end of 2021

(Reuters) - Asian stocks slipped on Wednesday, following a mixed Wall Street
session as the region's investors positioned their portfolios for the new
year and continued to grapple with increasing global numbers of Omicron
coronavirus cases.

 

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS)
lost 0.25%, after six sessions of gains, following volatile U.S. trade.

 

There were losses in Hong Kong (.HSI), down 0.6% hurt by declines in
mainland tech stocks while Chinese blue chips (.CSI300) shed 0.25%.

 

Japan's Nikkei (.N225) slid 0.58% Wednesday after hitting a one-month high
on Tuesday.

 

 

But in Australia, the ASX 200 (.AXJO) was up 1% early in the session even
though the country's most populous state New South Wales announced 11,201
new coronavirus cases.  

 

Volatile markets are common in late December as fund managers prepare to
rule off their books for the year and holidays thin trading volumes in some
major markets like Australia.

 

"Typically, at this time of year global investors are starting to rethink
their portfolio positions and they are looking at the risks going into
2022," said Jim McCafferty, Nomura's joint head of APAC equity research.

 

"Inflation is rearing its head in Europe and the U.S., it's more contained
in Asia, so people are looking to have their portfolios positioned to
mitigate inflation. In equities, people are looking at companies that can
pass on any future price rises and firms with dividend growth as one way
investors can generate income."

 

The rising Omicron case numbers are not spooking investors as much as first
feared given fatality rates have not soared and the prospects of global
lockdowns remains slim.

 

"Investors are moving ahead and looking at what the impact will be of going
back to normal," said McCafferty.

 

The Dow Jones Industrial Average (.DJI) rose 0.26% on Tuedsay. The S&P 500
(.SPX) hit a record intraday high during the session but weakened to end the
day off 0.10%. The Nasdaq Composite (.IXIC) lost 0.56%.

 

Yields on benchmark 10-year Treasury notes was at 1.4773% compared with its
U.S. close of 1.481% on Tuesday. The two-year yield , which rises with
traders' expectations of higher Fed fund rates, touched 0.7461% after
hitting 0.758% the previous session, a near two-year high.

 

This, along with the more cautious mood for equities, helped the dollar firm
slightly. The dollar index, which measures the greenback against six peers ,
was at 96.23, up from a low of 95.958 on Friday.

 

U.S. crude ticked up 0.25% to $76.17 a barrel. Brent crude rose to $79 per
barrel.

 

Gold was slightly lower. Spot gold was traded at $1,804.5631 per ounce.

 

The Thomson Reuters Trust Principles.

 

 

 

Tsinghua Unigroup expects strategic investment in place by end of March

(Reuters) - A strategic investment of 60 billion yuan ($9.42 billion) will
be in place for Chinese chip conglomerate Tsinghua Unigroup before March 31,
a report by the local 21st Century Business Herald said on Wednesday.

 

The debt-laden company had earlier announced that a vote on the pending
investment would take place on Dec. 29.

 

Investors JAC Capital and Wise Road Capital will inject

 

60 billion yuan in cash as part of a restructuring plan for Tsinghua
Unigroup, state media reported in December.

 

($1 = 6.3718 Chinese yuan renminbi)

 

The Thomson Reuters Trust Principles.

 

 

 

China's Didi plans Hong Kong 'listing by introduction', picks banks -sources

(Reuters) - China's ride-hailing giant Didi Global (DIDI.N) plans to use a
mechanism that will allow it to list shares in Hong Kong without raising
capital or issuing new stock as it seeks to delist from New York, two people
with knowledge of the matter said.

 

The plans come as Didi is moving towards withdrawing from the New York Stock
Exchange under pressure from Beijing after running foul of Chinese
authorities by pushing ahead with an initial public offering (IPO) there
earlier this year despite being asked to put it on hold while a review of
its data practices was conducted.

 

The Hong Kong mechanism, known as 'listing by introduction', would allow
owners of Didi U.S. shares to transfer them to the city's bourse gradually,
said the people. They declined to be identified as the plan was not yet
public.

 

Didi aims to file for the Hong Kong listing by end-April and list by June,
one of the people said.

 

The plans are being prepared six months after Didi, sometimes dubbed the
Uber Technologies Inc (UBER.N) of China, made its debut in New York after
raising $4.4 billion in a conventional IPO.

 

It said earlier this month that it plans to delist from the U.S. bourse and
pursue a Hong Kong listing.

 

A spokesperson for Didi, whose apps, in addition to ride-hailing, offer
products such as delivery and financial services, did not immediately
respond to Reuters request for comment.

 

Unlike typical IPOs, companies listing stock by introduction in Hong Kong
raise no capital and issue no new shares. The mechanism was popular among
companies in the past looking to build a brand in Hong Kong and the rest of
Greater China.

 

Didi has picked Goldman Sachs (GS.N), China Merchants Bank International
(CMBI), and China Construction Bank International (CCBI) to manage the Hong
Kong listing process, said the people.

 

Goldman declined to comment, while CMBI, and CCBI did not immediately
respond to request for comment.

 

Reuters reported this month Didi planned to hire Goldman to work on the Hong
Kong listing before embarking on the New York delisting. It had asked the
bank to come up with proposals on how a Hong Kong listing and New York
delisting would work.

 

Goldman was one of the main underwriters of Didi's New York IPO, along with
Morgan Stanley (MS.N) and JPMorgan (JPM.N).

 

The Thomson Reuters Trust Principles.

 

 

Oil prices climb again as U.S. inventories fall

(Reuters) - Oil prices edged higher on Wednesday after rallying overnight as
industry data showed a decline in U.S. inventories, boosting demand
sentiment.

 

Brent crude rose 26 cents, or 0.3%, at $79.20 a barrel by 0759 GMT. U.S.
West Texas Intermediate (WTI) crude climbed 19 cents, or 0.2%, to $76.17 a
barrel.

 

"Some long-covering is evident in Asia today in an otherwise nondescript
session," said OANDA analyst Jeffrey Halley in a note.

 

Both contracts are trading near their highest levels in a month, aided by
the strength in global equities.

 

 

Asset classes from oil to equities have clawed back losses from late
November, when the Omicron variant of COVID-19 sent investors scurrying for
safety.

 

American Petroleum Institute data showed U.S. crude stocks fell by 3.1
million barrels in the week ended Dec. 24, market sources said late on
Tuesday, in line with expectations of nine analysts polled by Reuters.

 

Gasoline inventories registered a lower-than-expected decline of 319,000
barrels, while distillate stocks dropped by 716,000 barrels compared with
hopes of a 200,000 barrels drop.

 

Weekly data from the U.S. Energy Information Administration is due later on
Wednesday.

 

Oil prices have been underpinned by three oil producers declaring forces
majeure this month on part of their oil production because of maintenance
issues and oilfield shutdowns. read more

 

Russian Deputy Prime Minister Alexander Novak, in charge of Moscow's ties
with the OPEC+ group of oil producers, has said that the group has resisted
calls from Washington to boost output because it wants to provide the market
with clear guidance and not deviate from policy.

 

Investors are awaiting an OPEC+ meeting on Jan. 4, at which the alliance
will decide whether to go ahead with a planned production increase of
400,000 barrels per day in February.

 

At its last meeting, OPEC+ stuck to its plans to boost output for January
despite Omicron.

 

The Thomson Reuters Trust Principles.

 

 

 

German finance watchdog fines Deutsche Bank for EURIBOR controls

(Reuters) - The German financial regulator BaFin on Wednesday said it had
fined Deutsche Bank (DBKGn.DE) 8.66 million euros ($9.78 million) for
controls related to the Euro Interbank Offered Rate (EURIBOR), a setback for
the nation's largest lender as it seeks to restore its reputation.

 

"The bank at times did not have in place effective preventive systems,
controls and policies," BaFin said.

 

Deutsche Bank said it accepted the fine and had implemented measures to
improve its controls regarding EURIBOR, a benchmark rate used in the
financial industry.

 

"Deutsche Bank has no indication that the fined issue led to incorrect
submissions to the benchmark administrator," the bank said.

 

The bank has been the subject of numerous regulatory and legal
investigations over the past decade.

 

In April, BaFin ordered Deutsche Bank to enact further safeguards to prevent
money laundering.

 

Under new leadership, BaFin has also been trying to restore its image, which
was battered after it failed to spot wrongdoing ahead of the collapse last
year of German payments company Wirecard.

 

($1 = 0.8853 euros)

 

The Thomson Reuters Trust Principles.

 

 

 

Foxconn to restructure management at India iPhone plant

(Reuters) - Apple (AAPL.O) supplier Foxconn Technology Group on Wednesday
said it was restructuring its local management at its Sriperumbudur facility
in southern India after it found some issues at its offsite dormitory
facilities.

 

The factory in Tamil Nadu has been at the centre of a mass food-poisoning
incident which sparked employee protests and threw light on the living
conditions of the workers in hostels near the factory. read more

 

Separately, an Apple spokesperson said Foxconn's Sriperumbudur facility had
been placed on probation.

 

The Thomson Reuters Trust Principles.

 

 

Malaysian securities regulator charges Serba Dinamik, seeks arrest of CEO

(Reuters) - Malaysia's securities regulator said it is seeking the arrest of
oil and gas services firm Serba Dinamik Holdings' (SERB.KL) chief executive
and has charged company officers with submitting a false statement to the
country's stock exchange.

 

In a statement issued on Tuesday, Securities Commission Malaysia (SC) also
said it had secured a warrant seeking a police arrest of Serba chief
executive officer and group managing director Mohd Abdul Karim Abdullah. The
regulator said the CEO is "currently at large".

 

Serba declined to comment while the police did not immediately respond to a
request for comment. Reuters wasn't able to contact Abdul Karim for comment,
nor establish his location.

 

The regulator said the false statement was in relation to a 6.014 billion
ringgit ($1.44 billion) revenue figure published by Serba in its quarterly
report for the period ended Dec. 31, 2020.

 

The investigation into Serba was launched in May following a report by
external auditor KPMG.

 

The latter had raised concerns about not being able to verify contracts and
transactions worth 3.5 billion ringgit with 11 of Serba's customers. KPMG
resigned in June after Serba filed a lawsuit against it. read more

 

KPMG had said it will vigorously contest any court proceedings, but declined
to comment after resigning from the auditor role.

 

Serba appointed EY Consulting in July as a special independent reviewer
after stock exchange Bursa Malaysia's issued a directive that the company
should review the issues raised by KPMG.

 

But Serba last month filed a lawsuit against EY Consulting, seeking to block
it from releasing any findings on the group.

 

Bursa Malaysia and EY Consulting did not immediately respond to requests for
comment.

 

Serba's shares have been suspended since Dec. 15 after it defaulted on a
$222.22 million sukuk. It said in a bourse filing that the incident may
significantly impact the group's financial performance.

 

($1 = 4.1800 ringgit)

 

The Thomson Reuters Trust Principles.

 

 

 

Dollar firms in soft holiday trading, outlook bullish

(Reuters) - The dollar inched up on Wednesday as a recent rally in shares
showed signs of petering out, but holiday-thinned trading meant markets were
showing little real direction.

 

The dollar index , which measures the greenback against major peers rose as
high as 96.240 during the session versus Monday's close of 96.068, moving up
against most other majors after the euro lost 0.14% on Tuesday.

 

The common currency was last at $1.1305 and the pound slipped from a
five-week high to $1.3433.

 

But with many traders having taken time off for Christmas or the end of the
year, analysts said it was hard to read too much into the moves.

 

"Things are mostly noise right now, though we are probably seeing a soft
risk-on/risk-off dynamic going on with stocks down slightly, and the dollar
has caught a bid on the inverse of that," said Kyle Rodda, an analyst at IG
Markets.

 

He said longer term, however, he was bullish on the greenback due to
approaching rate hikes by the Federal Reserve and the apparent reduced
chance of future lockdowns in the United States.

 

The Fed is widely expected to begin hiking rates before several other major
central banks such as the European Central Bank, and this has helped the
dollar index to have its best year in 2021 since 2015.

 

MSCI's broadest index of Asian shares outside Japan (.MIAPJ0000PUS) lost
0.3% on Wednesday, and overnight the S&P 500 (.SPX) and the Nasdaq Composite
(.IXIC) both closed slightly lower, albeit after the S&P 500 posted gains
for four straight days and hit a record intraday high earlier in the
session.

 

Markets have been largely trading based on changing assessments of the
impact of the Omicron variant of COVID-19, with the recent rally in risk
assets like equities based on a view the new strain would not derail the
global economic recovery too much.

 

U.S. health authorities on Monday shortened the recommended isolation time
for Americans with asymptomatic cases of COVID-19 to five days from the
previous guidance of 10. read more

 

The yen , which had been weakening alongside those advances in shares,
stemmed its losses on Wednesday. It was last at 114.82 per dollar compared
with Tuesday's month-low of 114.94.

 

The dollar was also supported by a rise in two-year Treasury yields which
hit 0.758% on Tuesday, a near two-year high, before slipping marginally to
0.7461%.

 

The Australian dollar was steady at $0.7232.

 

Moves were more stark in cryptocurrencies, which often see sharp swings in
low liquidity periods such as weekends and holidays.

 

Bitcoin lost around 6% late on Tuesday to as low as $47,300, giving up all
of the steady gains it had made this week.

 

Ether, the world's second-largest cryptocurrency which underpins the
ethererum network, also lost around 6% to as low as $3,760, also a week low.

 

The Thomson Reuters Trust Principles.

 

 

Egypt: All EGX Indices Up, Benchmark Increases 0.54 Pct

The Egyptian Exchange (EGX) indices went up collectively at the close of
Tuesday's trading, pushed by strong purchases from Egyptian, Arab and
foreign institutions and investment funds.

 

Meanwhile, sales prevailed in transactions of local investors.

 

The market capital gained nearly EGP 3 billion, registering EGP 752.9
billion after transactions totaled EGP 3.5 billion.

 

The EGX 30 benchmark index rose 0.54 percent, recording 11,913.44 points.

 

The broader EGX 70 EWI of the leading small and medium enterprises (SMEs)
slightly increased 0.17 percent, hitting 2,181.67 points.

 

The all-embracing EGX 100 index was also up 0.18 percent, standing at
3,224.69 points.-Egypt Online.

 

 

Rwanda: World Bank Regional Boss Optimistic On Rwanda's Road to Economic
Recovery

Following a recession by 3.4 per cent in 2020, the economy is projected to
grow by over 10 per cent in 2021 characterized by recovery of disrupted
sectors. This will also involve making up for lost progress in aspects such
as education, social protection and entrepreneurship among others. The New
Times's Collins Mwai spoke to Keith Hansen, the World Bank Country Director
for Kenya, Rwanda, Somalia and Uganda on the bank's assessment of Rwanda in
the recovery journey, key opportunities and milestones so far. Excerpts
below:

 

The education sector was cited as one of the most affected by the pandemic
especially with regard to learning outcomes and durations lost out of
school. What are the best chances of catching up?

Education has been one of the biggest and damaging shocks of the pandemic.
It is going to take a while to assess the full extent of the damage, what
needs to be done and remedy the short fall. A few things need to be
considered. We need to make up for the lost time. This is a country level
approach to determine what was lost, what resources are available and what
can work best. This is something that we are working with the government to
establish and find a way out.

 

The answer also lies in finishing the ultimate job of vaccination because
without that, nothing else can flow. It is the only way we can get the kids
back in school and other things back running. Rwanda has done very well in
the rapid rollout.

 

The challenges that existed in many countries in learning even before
Covid-19, have been highlighted and urgently need to be addressed.

 

The government in Rwanda built over 22,000 classrooms during the pandemic
which will be a big step in quality and learning outcomes in Rwanda. The
country made an opportunity out of a crisis. I know the government is very
keen on completing the job and moving on to other things.

In 2020, there was concern that there was a need for more social safety nets
to prevent people from slipping into poverty. Where does the country stand
now?

 

One of the things that Covid-19 revealed was the weaknesses in social
protection programmes such as social safety nets especially those that are
crisis responsive. This was a big opportunity. It has demonstrated the cost
of not having this in place. There is a wealth of experience around the
world of sustainable and appropriate social protection systems. Countries
that had this in place were able to respond in time and as they come out of
covid, they are better placed. This is something that we are working with
Rwanda on.

 

SMEs which are said to be the largest employer in any economy and driver of
growth suffered significantly with some having to close operations, what is
the World Bank's advice on ensuring survival of SMEs?

All these lessons are general and not just for Rwanda. SMEs are crucial and
especially in countries where larger firms can establish themselves. It is
an important source of employment as countries move from Agriculture
dependence to manufacturing and services. These firms need ready access to
financial services and support. It is also a source of innovation and
entrepreneurship.

 

The Rwandan economy is projected to grow by over 10 per cent in 2021 marking
a recovery from recession, what are the best chances of sustaining the
recovery and growth amidst the global turbulence?

 

The one answer that applies to everyone again is vaccination. It is the
avenue to get back to growth. It is ideal that Rwanda has had a track record
of growth for the last few years. While some of the growth is rebound, but
the magnitude of it is encouraging. We are optimistic that Rwanda will be
able to return to its growth path. The government has put forth a national
strategy, the economy will need to go through continued transformation to
get to the next phase as it moves up to a middle income state. That means
there continues to be a greater need to ensure that there is access to
infrastructure, boosting human capital, boosting productivity among others.
To be fair to Rwanda and other emerging countries, much of what happens to
them depends on what happens to the global economy.

 

Given the World Bank's investment across multiple sectors, what are your
broad expectations from various stakeholders?

 

Rwanda has a record of delivery and performing. It's not the World Bank's
place to set expectations for the country, we serve the country and work
with them to find the best path and support them.

 

I would expect that based on past performance, most of the goals will be
achieved including brings services to a vast majority of the population and
moving up the value chain in sectors such as agriculture. Rwanda has also
made a huge commitment in human capital backed by resources and we have a
number of financial support systems and look forward to see the goals. We
are also sure to see the gains from the vaccination efforts as Rwanda has
been very efficient.

 

For the private sector, we would like to see them take a larger role of the
government's strategy as it is the ultimate driver of sustainable growth and
on the verge of becoming a middle income country.

 

We are hopeful that the steps that the government is taking in upgrading
infrastructure and opening up the environment are going to help induce more
private sector response. That will take a while and not immediately.

 

Rwanda is one of the countries that have made commitments to climate change
efforts and some of the lessons of resilience from Covid-19 will also be
useful in dealing with climate change. One of the things that distinguishes
those that are able to thrive and not is resilience to shocks.-New Times.

 

 

Kenya: Octagon's Financial Literacy Training to Benefit 1,500 Students.

Nairobi — Over 1,500 high school students across the East and Southern
African region will benefit from financial literacy training in a bid to
cultivate a healthy savings culture.

 

Octagon Africa, through the first virtual financial literacy training,
themed Starting now for a better future, aims to educate the students on
understanding money, budgeting and saving.

 

"Currently the pension coverage in the country is still low at about 22 per
cent of the total labour force which is heavily attributed to a poor savings
culture. In order to avert these glaring numbers there is a need to
cultivate healthy saving habits from a young age," said Octagon Africa Group
CEO Fred Waswa.

 

An analysis by EFG Hermes reveals that Africa's saving rate stands at an
average of 17 per cent with Kenya's saving rate at 12 per cent, half of the
average for low-income countries.

 

"Our vision as Octagon Africa is to guarantee financial security and we
believe that the key to this security lies in saving cultivated from a young
age. Through this financial literacy trainings, we are confident that we
will be able to contribute to the increment of the savings rate across the
region," he concluded.

 

The free financial literacy training for high school students is part of
Octagon's social responsibility to contribute to the region's pension uptake
across youth, employed and informal groups.-Capital FM.

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


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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