Major International Business Headlines Brief::: 12 February 2021

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Major International Business Headlines Brief::: 12 February 2021

 


 

 


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ü  Huawei takes HSBC to court as it tries to stop extradition

ü  Biden warns China will 'eat our lunch' on infrastructure spending

ü  Bumble: Female-founded dating app tops $13bn in market debut

ü  GameStop: Share buying mistakes 'on the rise'

ü  Shell: Europe's biggest oil firm sets out carbon neutral plans

ü  Hyundai: The carmaker aiming to become a tech firm

ü  U.S. House committee approves another $14 billion for pandemic-hit
airlines

ü  EU says it is ready to work with Biden administration to settle trade
disputes

ü  Asian shares stuck in holiday lull, bitcoin powers higher

ü  Disney returns to profit as streaming success offsets pandemic-hit parks

ü  PayPal unlikely to invest cash in cryptocurrencies: CNBC

ü  South Africa: Economic Recovery, Defeating Coronavirus Top Agenda for
SONA 2021

ü  South Sudan: Govt Introduces 1,000 Pound Banknote

ü  Uganda: Govt Seeks to Tax Cash Withdrawals From Banks

ü  Namibia: Cabinet Guns for Air Namibia Liquidation

ü  Nigeria: Why Nigeria Is Changing to Cleaner Energy - Osinbajo

 

 

 


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Huawei takes HSBC to court as it tries to stop extradition

The Chinese telecoms giant Huawei is taking the bank HSBC to court in the UK
as part of its attempt to prevent the extradition of its chief financial
officer from Canada to the US.

 

Meng Wanzhou was arrested in Canada on a US request over claims she misled
HSBC in a 2013 meeting.

 

Huawei now hopes to gain access to HSBC documents that could help it
undermine the US case for her extradition.

 

The bank told the BBC the application for disclosure was "without merit".

 

The move comes amid political pressure on HSBC, which is UK based but was
founded in Hong Kong where it makes much of its profits.

 

The court hearing in London on Friday draws the bank deeper into a legal
battle which has raised tensions between Canada and China.

 

Meng Wanzhou, who is the daughter of Huawei's founder, was arrested at
Vancouver airport on 1 December 2018 because the US wants her to stand trial
on charges including fraud. These are linked to the alleged violation of US
sanctions against Iran, allegations she denies.

 

A meeting between Ms Meng and HSBC on 22 August 2013 is central to the
claims.

 

Reuters news reports in the preceding months had raised questions about
whether there had been a breach of trade sanctions on Iran by Hong
Kong-based firm Skycom.

 

At issue was whether Skycom, a telecoms equipment seller, was simply a
business partner of Huawei's - or a front for it to conceal its activities
in Iran.

 

The US alleges that in the meeting Ms Meng misled HSBC over the true nature
of Huawei's relationship with Skycom and this, in turn, put the bank at risk
of violating sanctions against Iran. But it was more than five years after
the meeting that she was detained.

 

Her Canadian lawyers have followed a multi-pronged strategy to try to
prevent the extradition.

 

Huawei

One part has involved claiming the US omitted key information on two slides
which showed HSBC was not, in fact, being kept in the dark about the true
nature of the Skycom/Huawei relationship and she was clear about it.

 

Now, her lawyers have made an application to the UK high court under the
Bankers Book Evidence Act to access relevant information kept in HSBC's
books. Under this Act, they are seeking a court order to gain access to HSBC
documentation.

 

They are understood to be seeking evidence about what HSBC did or did not
know about Huawei and Skycom's relationship in Iran and how high up the bank
knowledge of the meeting went.

 

In response, a spokesperson for HSBC said: "This application for disclosure
in the UK is without merit. HSBC is not a party to the underlying criminal
case in the US or the extradition proceeding in Canada. It would be
inappropriate to comment further on an ongoing legal matter."

 

HSBC under pressure

The case has placed HSBC in a difficult position. In China there has been
criticism for it having handed over information to US authorities which led
to Ms Meng's arrest. The bank has always maintained it simply handed over
what it was required to under law.

 

It has also come under fire in the UK from those who believe it has been too
friendly with Beijing, pointing to the freezing of the bank accounts of a
Hong Kong activist which led to the questioning of company executives by a
parliamentary committee recently.

 

Ms Meng is expected to appear in court in Canada on 1 March for the latest
stage of her extradition hearings, which are scheduled to finish in May,
although appeals are likely to extend the process.—bbc

 

 

 

Biden warns China will 'eat our lunch' on infrastructure spending

US President Joe Biden has warned that China will “eat our lunch” if America
doesn’t “step up” its infrastructure spending.

 

Mr Biden was speaking on Thursday with a group of senators about the need to
upgrade infrastructure in the US.

 

His warning comes the day after his first phone call with Chinese President
Xi Jinping.

 

On the call, Mr Xi took a hard line on human rights saying a confrontation
would be a disaster for both countries.

 

Mr Biden made the comments after meeting with members of the Environment and
Public Works committee.

 

“If we don’t get moving, they are going to eat our lunch,” President Biden
told senators.

 

“They’re investing billions of dollars dealing with a whole range of issues
that relate to transportation, the environment and a whole range of other
things. We just have to step up.”

 

During the campaign, Mr Biden proposed spending $2tn (£1.45tn) over four
years to create jobs and invest in clean energy infrastructure.

 

A widely cited American Society of Civil Engineers (ASCE) “report card” from
2017 gave the country’s infrastructure a grade of “D+”.

 

The ASCE estimated that the total “infrastructure gap” needed $2tn by 2025
to fix, but would cost the economy twice as much if it went unaddressed.

 

The World Economic Forum’s 2019 Global Competitiveness Report ranked the US
13th in a broad measure of infrastructure quality, down from fifth place in
2002.

 

China has been investing heavily in its infrastructure, pouring money into
high-speed rail, metro systems, apartment buildings, electricity grids and
mobile networks.

 

“They have a major, major new initiative on rail and they already have rail
that goes 225 miles an hour with ease,” Mr Biden noted.

 

Human rights and diplomacy

President Biden also discussed several other points of friction with the
Chinese President during his call.

 

The White House said he voiced “fundamental” concerns about Beijing’s
“coercive and unfair” trade practices, as well as concerns over China’s
crackdown in Hong Kong and treatment of Muslims in Xinjiang.

 

He also raised China’s increasingly assertive posture toward Taiwan and the
country’s lack of transparency over Covid-19, said White House spokeswoman
Jen Psaki.

 

Mr Xi maintained a hard line on Hong Kong, Xinjiang and Taiwan, calling them
matters of “sovereignty and territorial integrity”.

 

He told Mr Biden confrontation would be a “disaster” and the two sides
should re-establish the means to avoid misjudgements, China’s foreign
ministry said.—bbc

 

 

 

Bumble: Female-founded dating app tops $13bn in market debut

No bumbling here: Dating app Bumble, which made its name by putting women in
charge of making contact with potential mates, has soared to a market value
of more than $13bn after listing shares.

 

Its Wall Street success made 31-year-old boss Whitney Wolfe Herd a rare
self-made female billionaire.

 

Bumble, which also owns Badoo, is one of less than two dozen US firms to
list publicly while led by a female founder.

 

Shares in the firm debuted at $43 apiece, valuing it at over $8bn.

 

But in opening trade on Thursday they shot up to more than $76 each, making
the firm worth more than $13bn (£9.4bn).

 

'Make the first move'

Ms Wolfe Herd launched Bumble in Texas in 2014, with backing from Russian
billionaire Andreey Andreev, the founder of European online dating site
Badoo.

 

She has said she was inspired to create a platform where women "make the
first move" by her frustration with archaic gender norms controlling dating.

 

Unlike most dating apps, only female users can make the first contact with
matched male users, while in same-sex matches either person can send a
message first.

 

"I have experienced firsthand how unequal relationships negatively impact
all areas of life," she wrote in a letter to investors ahead of the share
listing. "I wanted to change this."

 

Ms Wolfe Herd, the youngest woman to take a company public in the US, also
co-founded dating app Tinder, but left the firm alleging sexual harassment.

 

Tinder's parent company Match Group Inc, which denied the claims and later
tried unsuccessfully to acquire Bumble, paid about $1m to settle the
dispute.

 

Ms Wolfe Herd has led Bumble and Badoo since 2019 when Mr Andreev sold his
stakes in both businesses to investment giant Blackstone. The two apps
combined have 40 million active users, including more than 2.4 million
paying customers.

 

Bumble, whose apps are available in more than 150 countries, has said it is
poised for growth, pointing to the rising number of single people globally,
increased adoption of online dating and signs that users have become more
willing to pay.

 

The firm is also expanding into new areas, like business networking.

 

But despite an uptick in use, the pandemic has hurt the business, which
makes money primarily from subscriptions and in-app purchases.

 

In 2019, revenue jumped more than 35% and it turned a profit of $68.6m.

 

In the first nine months of 2020, however, its growth rate sank to roughly
15% year-on-year, and it posted a loss of $116m.

 

In recent months, investors have displayed strong appetite for shares of new
listings, sending companies such as Airbnb and Doordash to sky-high
valuations in their market debuts.--bbc

 

 

 

GameStop: Share buying mistakes 'on the rise'

Buying shares in the wrong company is on the rise according to two leading
stock market academics.

 

The recent Reddit-inspired trading frenzy around GameStop highlighted the
mistakes traders can make.

 

For example, GameStop is listed as GME on the New York Stock Exchange, but
there is also an Australian mining stock (GME) that saw a spike in trades.

 

Vadim Balashov and Andrei Nikiforov of Rutgers University found professional
investors also get confused.

 

"We document that for more than a half of publicly trading stocks you can
find a firm with a similar name or ticker symbol. Indeed, for most cases in
the recent controversies, there have been stocks with similar or confusing
names," Mr Balashov told the BBC.

 

The trading frenzy earlier this month led to many novice investors buying
the wrong shares as a result of "ticker tape confusion". Others have made
mistakes with company names.

 

In January, when Elon Musk tweeted about using a rival messaging app to
Whatsapp called Signal, the shares of the unrelated stock Signal Advance
went up 1500%.

 

The messaging app is owned by a private company and doesn't list its shares
on the stock market.

 

But mistakes are not confined to beginners and private investors.

 

"We document that both retail and institutional types of investors are
equally prone to trades by mistake. You will be surprised how often
sophisticated and seasoned investors make the same mistake," Mr Balashov
said.

 

There was similar confusion over Clubhouse, an invite-only audio chat app,
which is also a private company. After Mr Musk tweeted about using
Clubhouse, the shares of unrelated media stock Clubhouse Media Group soared
100%.

 

Mr Balashov and Mr Nikiforov published a paper in 2019 after analysing
American stock market data from 1993 to 2013. In the trades they analysed,
about 5% of the annual trading volume of the companies mistakenly bought was
down to confusion.

 

They estimated that investors lost about about $66m (£48m) on transaction
costs for these mistaken trades.

 

Growing problem

The authors are currently working on a follow-up paper which shows "that
trading due to confusion is a much more common phenomenon than previously
believed".

 

"We believe that the advent of the internet, algorithmic and high-frequency
trading can have two-sided effect on confusion trading," said Mr Nikiforov.

 

While easy access to information should lower chances of trades made by
mistake, they are still happening.

 

"On the one hand, algorithmic and machine trading should minimise such
mistake. Yet, we see that even machines make mistakes when identifying
companies by name or ticker."

 

"We urge brokers to implement simple technical solutions, akin to using a
spell checker, to intervene with the order process when a trader enters a
ticker from the list of highly-confused pairs.

 

"And for investors, our message is simple - always double-check before you
trade."

 

Last year some investors even mixed up Tesla (TSLA), the electric carmaker
run by Mr Musk, with Tiziana Life Sciences (TLSA). Both are listed on the US
technology-heavy stock exchange Nasdaq.—BBC

 

 

 

Shell: Europe's biggest oil firm sets out carbon neutral plans

Oil giant Shell has said it wants net zero emissions both for itself and
from products used by its customers by 2050.

 

It has boosted targets to reduce the net amount of carbon dioxide that ends
up in the atmosphere.

 

The company also said that its oil production, which peaked in 2019, will be
gradually reduced.

 

Last week, Shell reported a huge loss after the Covid pandemic caused a
slump in oil demand.

 

Shell wants to expand its renewables, biofuels, and hydrogen businesses as
it comes under increasing pressure from investors and creditors.

 

In particular, it is shifting its long-term focus from oil and gas to
selling renewable energy, partly by taking stakes in renewable energy
projects.

 

Chief executive Ben van Beurden said: "We want to be a leading power player,
and the focus will be very much on selling clean power.

 

"Will we be producing the electrons ourselves? No. But a major player in
power we will be."

 

Unlike rivals BP and Total, Shell made no commitment to increase solar and
wind power generation.

 

The Church of England Pensions Board has been at the forefront of
shareholder contacts with Shell on sustainability.

 

Adam Matthews, director of ethics and engagement at the board, said: "It
really is the most comprehensive target, it covers all the emissions, not
only those caused by producing oil and gas, but actually the emissions from
the customers in burning it."

 

He said that Shell was "clearly making a play that it wants provide a
significant part of the hydrogen business, and also that it's going to work
through with its customers" in sectors where it is "hard to abate"
emissions.

 

Hydrogen potential 'huge'

Mr van Beurden said that the oil giant's aim was for its energy products to
be predominantly low and no-carbon.

 

Shell will use its existing refineries to start to produce biofuels, but it
will also use them to produce hydrogen.

 

Mr van Beurden said that the "growth potential is huge" in hydrogen, and
Shell is aiming for a double-digit share of global hydrogen sales.

 

It wants to boost hydrogen sales, both on forecourts, should demand for
hydrogen-fuelled cars take off, and is also interested in the possible
market for hydrogen-powered home heating.

 

Shell wants to increase the number of its electric vehicle charging points
from 60,000 to 500,000 by 2025, and double renewable electricity sales to
560 terawatt hours per year by 2030.

 

The company will also continue to sell more-polluting energy products such
as jet fuel and diesel, but plans to offset both its own and customer
emissions through carbon capture and storage and so-called "nature-based"
solutions such as reforestation.

 

If offsetting carbon emissions does not work, then Mr van Beurden said the
firm would "pull other levers harder" to get to its net zero target.

 

Spending will remain focused on oil and gas in the near future, with $2bn to
$3bn per year on renewables and low-carbon parts of the business, and $8bn
per year on oil and gas in the near term.

 

Environmental campaign group Greenpeace said there were "glaring flaws" in
Shell's net zero plans, including that it was relying on customers and
society to change behaviour.

 

Mel Evans, head of Greenpeace UK's oil campaign, said: "Without commitments
to reduce absolute emissions by making actual oil production cuts, this new
strategy can't succeed nor can it be taken seriously.

 

"Shell's plans include a delusional reliance on tree-planting."

 

Last week, Shell reported a net loss of $21.7bn (£16bn) last year after a
drop in demand due to the Covid-19 pandemic.—BBC

 

 

 

Hyundai: The carmaker aiming to become a tech firm

For a few weeks this year, South Korean carmaker Hyundai was dusted with the
Apple magic.

 

Last month Hyundai let slip that it was in talks with the maker of the
iPhone to co-operate on a car project, but this week it said the talks were
over.

 

However, this is by no means the end of Hyundai's push into technology.

 

The car firm has been investing heavily in new technology with a string of
partnerships, acquisitions and investments within the tech space.

 

Its takeover of robotics firm Boston Dynamics last year was a clear
indication of the direction it is taking - into cutting-edge technology.

 

The whole auto industry has been forced to innovate as the move towards
electric cars and autonomous vehicles accelerates.

 

Hyundai has been criticised in the past for lagging behind rivals in
adopting emerging technologies but is fast catching up, sealing a string of
alliances and investments with technology groups recently.

 

"Hyundai has a different set of motivations and more incentive to push the
limit. They have been a lot more aggressive in reinventing themselves," says
Dale Hardcastle, a partner at consultancy firm Bain.

 

Hyundai has been ramping up the electrification of its line-up of cars with
a dedicated battery electric vehicle (BEV) range called Ioniq.

 

Its aggressive electric car ambitions will see it launch 12 new BEV models
over the next four years, and fully electrify its line-up around the globe
by 2040.

 

Beyond battery electric vehicles, Hyundai has been busy developing charging
points and hydrogen refuelling stations.

 

"It's very clear where Hyundai sees its future. It's a brand that wants to
disrupt and push forward, to break up the status quo," says Mr Hardcastle.

 

The purchase of a majority stake in Boston Dynamics in a $1.1bn (£810m) deal
in December was seen as a major step to becoming a leader in car technology.

 

Boston Dynamics is a pioneer in consumer robotics, while it has a shared
interest with Hyundai in autonomous driving and smart factories.

 

"Hyundai is being very responsive to the dynamic market trends," says Bakar
Sadik Agwan, senior automotive consulting analyst at GlobalData.

 

"With the automotive industry getting more dynamic day by day due to the
fast technological advancements, companies need to transform their business
strategies to secure their position in the future mobility era. Hyundai
seems to be well on track in this direction."

 

The fact that Apple was considering a partnership with Hyundai shows how far
the carmaker has advanced.

 

And there are plenty of other projects in the pipeline.

 

Electric vehicles, autonomous driving and even the potential for passenger
drones are all possible projects for Hyundai and its sister company Kia.

 

"We are receiving requests for co-operation in joint development of
autonomous electric vehicles from various companies, but they are at an
early stage and nothing has been decided," Hyundai said.

 

"The stock market loves car companies who are tech firms, as seen with
Tesla's rise," says Sarwant Singh, managing partner at analysts Frost &
Sullivan.

 

"This partnership [with Apple] would have further highlighted Hyundai's
position as a tech innovator."

 

Many industry experts expect Hyundai to tie up with fellow South Korean
conglomerate and tech giant Samsung in developing smart electric vehicles.

 

"Hyundai Motor Group is exploring areas of potential collaboration with
diverse business partners around the world including Samsung Group, but
there is no specific initiative we can identify at this time," Hyundai
spokeswoman Jin Cha told the BBC.

 

"In line with this, we have our doors open to potential partners,
particularly global companies which are global leaders in their respective
domains."

 

Modern touch

Hyundai, which means modernity in English, was founded by Chung Ju-yung in
1947. The group makes products across the motor, construction, steel and
technology industries.

 

Mr Chung handed over the reins in 2000 to his son Chung Mong-koo who ran the
company for 20 years before moving on to become honorary chairman last
October.

 

He was succeeded by his son Euisun Chung in a move many feel will give
impetus to the world's fifth largest carmaker's push into electric vehicles.

 

 

media captionWill the UK be ready for a 2030 ban on sales of petrol and
diesel cars?

In a welcome speech Mr Chung, 49, said he hoped to bring about change at
Hyundai during a period of rapid technological innovation within the global
auto industry.

 

He identified autonomous driving, electrification, hydrogen fuel cells,
robotics and urban air mobility (UAM) - industry jargon for flying cars - as
his future initiatives.

 

"Carmakers need to prepare themselves for the future. By not exploring
potential new business models, these companies are setting themselves up for
obsolescence," says Sam Fiorani from AutoForecast Solutions.

 

Future focused

The changes began just over a year ago when Hyundai signed a joint venture
with self-driving technology firm Aptiv in a $4bn partnership named
Motional.

 

Ireland-based Aptiv supplies the technology that helps integrate data coming
from the sensors that self-driving cars rely on.

 

"Automobile manufacturers need to become technology companies. The old model
of just making and selling cars and trucks is disappearing and the future is
so much more," adds Sarwant Singh at Frost & Sullivan.

 

Hyundai also has an ambitious plan to build electric air taxis and wants to
get them flying by 2028.

 

A recent report by Boston Consulting Group (BCG) looked at the prospects of
tech companies like Apple and Google becoming significant carmakers in the
future given their recent advances.

 

Tech giant Google has its own self-driving unit called Waymo, which already
makes commercial self-driving taxis, while it emerged in December that
Huawei is working on its own smart car.

 

But BCG concluded that the reverse could happen instead.

 

"The automakers that digitally reinvent the fastest, becoming a company that
looks more like Apple or Peloton.

 

"It could be argued that such automakers would have the scale to add
themselves to the list of future tech giants."

 

Hyundai is hoping to be one of them.--BBC

 

 

 

U.S. House committee approves another $14 billion for pandemic-hit airlines

(Reuters) - A U.S. House committee on Thursday approved a proposal to give
airlines another $14 billion in payroll assistance as part of a broader
COVID-19 relief package that is working its way through Congress.

 

It would be the third round of support for the pandemic-hit industry.
American Airlines and United Airlines have warned of some 27,000 furloughs
without an extension of the current package that expires on April 1.

 

The House of Representatives Financial Services Committee on a 29-24 vote
approved the $14 billion for airlines and $1 billion for contractors to
cover payroll through September.

 

The funds will be included in the $1.9 trillion COVID-19 relief bill
proposed by President Joe Biden, whose initial plan did not include new
money for airlines. House Speaker Nancy Pelosi said on Thursday that she
expects lawmakers to complete legislation based on the bill by the end of
February.

 

American Airlines said in a statement after the committee vote that the
payroll support program, which covers employee wages and bans job cuts, “has
been a lifeline for our team members.”

 

U.S. airlines are burning through millions of dollars every day as the
pandemic crushes travel demand.

 

The Air Line Pilots Association, the largest pilot union in the world, said
the funds “would help prevent the additional financial devastation that
would result from the aviation industry being forced to furlough tens of
thousands of workers.”

 

Budget carriers Spirit Airlines, Allegiant Travel and Frontier Airlines,
however, have said in recent weeks that they intend to resume pilot hiring
later this year.

 

Reuters first reported many of the details of the plans to provide new
assistance to U.S. airlines, transit systems, airports and passenger
railroad Amtrak.

 

 

 

EU says it is ready to work with Biden administration to settle trade
disputes

WASHINGTON (Reuters) - The European Union on Thursday acknowledged a move by
the new U.S. government to refrain from imposing additional tariffs on EU
goods in a long-running dispute over aircraft tariffs, and said it was ready
to work to resolve trade disputes.

 

The U.S. Trade Representative’s office on Thursday said it had agreed with
U.S. industry that it was unnecessary to revise existing tariffs on European
goods at this time, refraining from changes that would have been possible
during a periodic review.

 

The move came a day after USTR said it looked forward to working with
European allies to resolve a 16-year-long battle over subsidies provided to
Europe’s Airbus and its U.S. rival Boeing Co.

 

Asked about Thursday’s decision, an EU spokesman said, “The EU is ready to
engage with the new U.S. administration on the basis of the EU-US agenda for
global change we adopted on December 2. Our aim is to find solutions to our
ongoing trade disputes, including on Airbus/Boeing.”

 

The American Italian Food Coalition, which represents more than 450 Italian
companies, manufacturers and trade groups, said the move would give both
sides time to work out a solution.

 

“The Biden Administration appropriately hit the pause button on another
carousel round of tariffs,” it said.

 

Officials from the EU and Britain are keen to work out a deal with the
administration of President Joe Biden, but talks are on ice until Biden’s
pick as top trade negotiator, Katherine Tai, is confirmed in her job by the
U.S. Senate. That could take several more weeks, with a confirmation hearing
not yet scheduled.

 

Envoys from Britain and the European Union on Monday stressed their
willingness to resolve the aircraft subsidies dispute.

 

EU Ambassador Stavros Lambrinidis said Brussels had proposed a six-month
suspension of tariffs on both sides to allow for negotiations. Britain,
which is no longer part of the EU but is part of the Airbus consortium, has
said it is also willing to lift tariffs, possibly unilaterally, as a
goodwill gesture.

 

 

 

Asian shares stuck in holiday lull, bitcoin powers higher

TOKYO/NEW YORK (Reuters) - Asian shares hovered just below a record high on
Friday as mixed U.S. economic data caused some investors to show restraint
after a global stock market rally pushed many bourses to dizzying heights.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.03%,
trading just shy of an all-time high reached in the previous session.
Australian stocks lost 0.31%. Shares in Tokyo fell 0.32%, pulling back from
30-year highs.

 

Futures for the S&P 500 were off 0.12%.

 

Markets in Greater China and most of Southeast Asia are closed on Friday for
the Lunar New Year holiday. China’s stock and bond markets, foreign exchange
and commodity futures markets are closed through Feb. 17 for the holiday.

 

Bitcoin surged yet again to a new record high after BNY Mellon said it will
offer custodian services for cryptocurrencies. The dollar headed for a
weekly loss, stung by bitcoin’s assent and disappointing U.S. economic data.

 

Trading in the United States and Europe on Thursday did not move prices
enough to provide much direction, said Tom Piotrowski, a market analyst at
CommSec in Sydney.

 

“We didn’t get much of a lead-in from the northern hemisphere,” Piotrowski
said. “Markets are in a bit of a holding pattern waiting for the next
catalyst and it is just a question of whether that catalyst is going to be a
positive one or a negative one.”

 

World stock markets were holding close to record highs on Thursday as
investors weighed some tepid economic data against increasing vaccinations
against COVID-19 and the prospect that more government spending and
continued cheap money from central banks will drive higher growth and,
eventually, inflation.

 

The MSCI world equity index, which tracks shares in 49 countries, fell 0.12%
on Friday, also pulling back from a record high.

 

On Wall Street, the Nasdaq and S&P 500 eked out gains of 0.4% and 0.2%,
respectively, while the Dow Jones Industrial Average slipped 0.02%.

 

Prices held near records as investors bet on more government spending,
although enthusiasm was tempered when U.S. President Joe Biden said that
China was poised to “eat our lunch,” raising fears of renewed strain on
Sino-U.S. ties.

 

U.S. weekly unemployment claims fell less than expected and core consumer
prices rose at a slower pace, which caused some traders to temper the
optimism about the economic outlook.

 

Cryptocurrency bitcoin [BTC=BTSP] reached a record high of $49,000 before
paring gains to trade up 0.57% at $48,282. BNY Mellon said it will form a
new unit to help clients hold, transfer and issue digital assets.

 

That came just days after Elon Musk’s Tesla revealed it had bought $1.5
billion worth of the cryptocurrency and would soon accept it as a form of
payment for its cars.

 

Spot gold fell 0.22% to $1,821.86 per ounce. U.S. gold futures fell 0.19% to
$1,823.30. Gold prices are still on track for their best week in three amid
broad dollar selling.[GOL/]

 

The dollar index drifted 0.02% lower on Friday, on course for a 0.6% weekly
decline. [FRX/]

 

Soft demand at an auction of $27 billion of new 30-year Treasuries on
Thursday continued to weigh on prices in Asia on Friday.

 

The yield on 10-year U.S. Treasuries rose to 1.1632%, while the 30-year
yield edged up to 1.9468%.

 

Brent crude fell 0.69% to $60.72 a barrel, having dropped half a percent the
previous session. U.S. oil fell 0.81% to $57.77 a barrel, after falling by
0.8% on Thursday.

 

OPEC cut its demand forecast and the International Energy Agency said the
market was still oversupplied, which cast a gloom over energy markets.

 

 

Disney returns to profit as streaming success offsets pandemic-hit parks

(Reuters) - Walt Disney Co swung to a surprise quarterly profit on Thursday,
as “The Mandalorian” and “Soul” lifted its fast-growing streaming business,
outweighing pandemic worries about its hobbled theme park operations.

 

Investors overlooked a 53% decline in park revenue in the quarter and
welcomed Disney+ streaming reaching 94.9 million subscribers. Shares rose
3.1% to $194 after they closed at an all-time high in regular trade.

 

The “Star Wars”-inspired “Mandalorian” series and Pixar’s animated “Soul”
movie helped position the year-old Disney+ as a credible threat to the
dominance of Netflix Inc in the streaming video wars.

 

Including Hulu and ESPN+, Disney’s paid streaming membership topped 146
million.

 

“Disney+ has been a massive success and is a testament to Disney’s brand
equity and expertise in storytelling,” eMarketer analyst Eric Haggstrom
said. “This has been one of the most successful consumer product launches in
recent memory.”

 

The company posted earnings of 32 cents per share for October through
December. Wall Street had expected a loss of 41 cents per share, according
to the average forecast of analysts surveyed by Refinitiv.

 

Quarterly revenue fell to $16.25 billion from $20.88 billion a year earlier,
but was still above analysts’ average estimate of about $15.93 billion,
according to IBES data from Refinitiv.

 

During the pandemic “we have made significant changes while finding new and
innovative ways to conduct our businesses,” Chief Executive Bob Chapek said
on a conference call with analysts. “But at the same time, we have chartered
a course for an even more deliberate and aggressive (streaming) push.”

 

As the coronavirus pandemic drags on, Disney’s theme parks in California,
Hong Kong and Paris remain closed and others have limited attendance to
allow for social distancing. The company expects Disneyland in California
and Disney Paris to remain closed through March and hopes its park in Hong
Kong can reopen sometime before April, Chief Financial Officer Christine
McCarthy said.

 

The movie studio has delayed several major releases as many theaters remain
shut. While the company has moved some films to streaming, Chapek said
Disney still plans for Marvel action movie “Black Widow” to be released in
theaters. The film starring Scarlett Johansson is currently scheduled to
debut May 7.

 

The media and entertainment distribution unit, which includes streaming, the
movie studio and traditional TV networks, reported operating income of $1.5
billion, a 2% decline from a year earlier.

 

At the parks and consumer products division, operating loss from the parks
and consumer products business hit $119 million, compared with a profit of
$2.52 billion a year earlier.

 

The closures and reduced operations cost about $2.6 billion, Disney
estimated.

 

Looking ahead, the company said it expected costs to comply with government
regulations and to implement safety measures at parks and in TV and film
production to reach $1 billion in fiscal 2021.

 

The direct-to-consumer segment, which houses Disney+, reported an operating
loss of $466 million, compared with an operating loss of $1.11 billion in
the year-earlier quarter.

 

 

PayPal unlikely to invest cash in cryptocurrencies: CNBC

(Reuters) - PayPal Holdings Inc is not likely to buy cryptocurrencies such
as bitcoin, the payments processor’s Chief Financial Officer John Rainey
told CNBC on Thursday.

 

“We’re not going to invest corporate cash, probably, in sort of financial
assets like that, but we want to capitalize on this growth opportunity
that’s in front of us” Rainey said in a CNBC interview.

 

PayPal said in October it will allow U.S. customers to hold bitcoin and
other virtual coins in its online wallet, and shop using cryptocurrencies at
merchants on its network.

 

Earlier this week, Mastercard said it was planning to offer support for some
cryptocurrencies on its network this year. Asset manager BlackRock Inc and
payments company Square Inc have also recently backed cryptocurrencies.

 

Rainey said PayPal wanted to invest its money in services the company is
currently providing, such as buy now, pay later.

 

Buy now, pay later services have blossomed across retail websites during the
COVID-19 pandemic, as more people turned to online shopping.

 

PayPal’s comments come amid a bitcoin frenzy after Elon Musk’s electric
vehicle company Tesla Inc revealed it had bought $1.5 billion of the
cryptocurrency and would soon accept it as a form of payment for cars,
sending the price of the digital currency higher.

 

Following Tesla’s announcement, several companies came out with their views.

 

Uber Technologies Inc Chief Executive Officer Dara Khosrowshahi said the
ride-hailing company discussed and “quickly dismissed” the idea of investing
in bitcoin. However, he added that Uber could potentially accept the
cryptocurrency as payment.

 

Twitter Inc said it was still undecided in holding bitcoin, while General
Motors Co said it will evaluate whether bitcoin can be accepted as payment
for its vehicles.

 

 

South Africa: Economic Recovery, Defeating Coronavirus Top Agenda for SONA
2021

In a year where the economy took a huge knock as the COVID-19 pandemic
halted production, President Cyril Ramaphosa says defeating the health
crisis and rebuilding the economy are among the key priorities for the year
ahead.

 

He said this as government also announced that it has secured nine million
jabs of the Johnson & Johnson vaccine being confirmed for South Africa. The
President was delivering the much anticipated State of the Nation Address
during a hybrid sitting at the National Assembly on Thursday.

 

The President said the time ahead was a year of rebirth.

 

"This is no ordinary year, and this is no ordinary State of the Nation
Address. I will therefore focus this evening on the foremost, overriding
priorities of 2021.

 

"First, we must defeat the Coronavirus pandemic.

 

"Second, we must accelerate our economic recovery.

 

"Third, we must implement economic reforms to create sustainable jobs and
drive inclusive growth.

 

"And finally, we must fight corruption and strengthen the state," he said.

 

The President said in the coming weeks, government will address the other
important elements of its programme for the year.

 

He said fundamental to the nation's recovery is an unrelenting and
comprehensive response to overcome the Coronavirus.

 

"South Africa has just emerged from the second wave of infections since
COVID-19 arrived on our shores in March last year. Driven by a new variant
of the virus, this second wave was more severe and cost many more lives than
the first wave.

 

"Nevertheless, the human cost could have been far greater.

 

"Had we not moved quickly to restrict movement and activity, had we not
prepared our health facilities, had South Africans not observed the basic
health protocols, the devastation caused by this virus could have been far
worse."

 

The President said this year, the country must pull out all stops to contain
and overcome the pandemic.

 

"This means intensifying our prevention efforts and strengthening our health
system.

 

"It also means that we must undertake a massive vaccination programme to
save lives and dramatically and reduce infections across the population," he
said.-SAnews.gov.za.

 

 

South Sudan: Govt Introduces 1,000 Pound Banknote

Juba — South Sudan's Central Bank on Tuesday introduced a 1,000 Pound
banknote in a move to ease transactions.

 

"Our aim is to align the structure of the banknote with the need of the
people who use it for their daily transactions. We need banknotes that are
convenient, high quality, secure, and cost effective," Central Bank governor
Dier Tong told journalists in Juba on Tuesday.

 

"In July 2019, the Bank of South Sudan planned to introduce 1,000 Pound
after the successful introduction of the 500 Pound banknotes in 2018, which
indicated a significant increase in the demand for higher denomination
banknotes."

 

Mr Tong added that this should not be misinterpreted as going against the
bank's policy of promoting use of electronic modes of payment.

 

"While vigorously pursuing financial inclusion by accelerating the migration
to e-payment platforms, we are also mindful of the relevance of cash in our
day to day dealings. Undeniably, cash still remains preferred medium of
payment by the large informal sector in the country," he said.

 

The Central Bank will soon embark on a nationwide public campaign on the key
security features of the new denomination, Mr Tong said.

 

The 1,000 Pound banknote has a feature for the partially sighted, a
watermark, disappearing value, and is a gold-coloured iridescent banknote.
It also has a watermark portrait of Dr John Garang De Mabior with the
dominant maroon colour and a colour changing holographic security strip,
among other distinct features.

 

First change attempt

 

The South Sudanese Pound was introduced on July 18, 2011, replacing the
Sudanese Pound after the country achieved its independence following 21
years of brutal civil war with the North.

 

Before the introduction of the 1,000 Pound banknote, the Pound had seven
denominations - 1, 5, 10, 20, 50, 100 and 500 pounds which was introduced in
2019.

 

In 2016, the Bank of South Sudan issued a 20 Pound banknote to replace the
25 Pound banknote.

 

Change of currency

 

In November 2020, South Sudan's Central Bank said it would tighten the
country's monetary policy to mitigate the rapid depreciation of the South
Sudanese Pound against the US dollar.

 

In October of the same year, South Sudan's Council of Ministers opted to
change the currency in an attempt to bring back hoarded cash that it claimed
is aiding the decline of the economy. This was after Central Bank's second
deputy governor, Daniel Kech Pouch, said the financial institution had run
out of foreign reserves, a claim that was later revoked by the former
governor Jamal Abdallah. The change of currency was not implemented.-East
African.

 

 

 

Uganda: Govt Seeks to Tax Cash Withdrawals From Banks

The government is considering taxing cash withdrawals from commercial banks,
according to a leaked letter seen by this newspaper.

 

"Following our budget consultative meeting held on February 5th, 2021, at
this ministry [of Finance] attended by officials from Uganda Communications
Commission, Ugandan Revenue Authority, Telecom Operators and Bank of Uganda,
it was proposed that we explore taxation of cash withdrawals, from
commercial banks," the letter written by Patrick Ocailip, the deputy
secretary to the treasury in ministry of Finance, said. The letter is
addressed to the Governor, Bank of Uganda.

 

In it, Ocailip further tells the Governor, that the ministry wishes to seek
his opinion on the proposal, and requests that he also avails data on
different categories of withdrawals for further review and determination.

 

The letter was written on February 9th.-Monitor.

 

 

Namibia: Cabinet Guns for Air Namibia Liquidation

Cabinet has given its approval for Air Namibia to be voluntarily liquidated.

 

The intention is to register the resolution with Business and Intellectual
Property Authority (BIPA) before 18 February so that Challenge Air (which
took Air Namibia over unpaid dues) cannot attach any of the airline's
assets.

 

In leaked documents from a consultative meeting yesterday, Cabinet made the
decision that the airline's workers will enjoy preferential treatment and
receive their full severance packages from the liquidators.

 

"We will also explain that Cabinet approved for the employees to receive ex
gratia payments equal to the value of 12 months salary and that this amount
will be disbursed over a 12 month period," the documents read.

 

Moreover, the shareholder noted that it will ensure there's no salary
payment gap when the liquidation is activated.

 

"If the liquidator can't pay, the ex gratia payments would be activated,"
they said.

 

The public enterprises ministry, finance ministry, the executive committee
members of Air Namibia, the board and unions will meet this afternoon for
the government to give its stance on the matter and the way forward on
liquidation.

 

"All efforts must be made to protect the assets of the company," the
documents added.

 

The interim chief executive officer has been directed to a detailed plan of
action and coordinate a way forward with the board.

 

Meanwhile, the public enterprises ministry allegedly appointed lawyer Norman
Tjombe, business woman Hilda Basson-Namundjebo and businessman James Cumming
to the airline's board. However, the Namibian Sun reported that State House
has reversed the appointment of the trio.

 

In a communique yesterday, the Air Namibia management informed the public
that all flights with the airline are cancelled and all aircrafts will
return to the base.

 

The reservation system for taking new bookings has also been suspended.

 

"Affected passengers must register their claims for a refund," the
communique noted.A source close to the matter confirmed to The Namibian that
it seems the government changed its mind regarding the appointment of the
three new directors and have decided to rather appoint two government
employees.

 

Meanwhile, public enterprises minister Leon Jooste told The Namibian that
everything will be revealed at a press conference today.-Namibian.

 

 

Nigeria: Why Nigeria Is Changing to Cleaner Energy - Osinbajo

Vice President Professor Yemi Osinbajo has explained why Nigeria is changing
to cleaner energy.

 

And this is in line with the globally endorsed Climate Change agenda and the
Buhari administration's effort to connect more communities to off-grid power
and reliable energy sources, according to Vice President Yemi Osinbajo, SAN.

 

Professor Osinbajo stated this on Thursday in a message delivered virtually
at the commissioning of a 1.12 MW Captive Solar Hybrid Power Plant at the
Abubakar Tafawa Balewa University, Bauchi.

 

The project executed under the Energizing Education Programme (EEP), an
initiative of the Federal Government, is aimed at providing 37 Federal
Universities and 7 Teaching Hospitals with captive energy solutions that
will ensure sustainable and reliable power for students and faculty.

 

According to the Vice President, "renewables are the fastest-growing segment
of energy today and will certainly be a key economic driver well into the
future.

 

"Indeed, Nigeria intends to have 30 per cent of its electricity supply from
renewables by the year 2030. Our future workforce, therefore, needs to be
ready for this energy transition. The training centers constitute a critical
additional benefit of this project."

 

Continuing, he noted that "besides, this programme reaffirms the Federal
Government's commitment to global best practice as we transition to cleaner
sources of energy in line with the Paris Agreement on Climate Change.

 

"These projects being implemented by the Rural Electrification Agency are
strategic to fulfilling our commitments to the agreement as they strive to
reduce Nigeria's carbon footprint.

 

"The leveraging of renewable energy technology is in line with the Federal
Government's mandate and related activities. Nigeria's plan to reduce carbon
emission by 20 per cent unconditionally and 45 per cent with international
support by 2030, aims to limit the damaging effect of climate change."

 

Speaking on the benefits of the EEP, Professor Osinbajo said "already,
22,000 students and faculties across the country are connected to completed
projects in Kano, Ebonyi, Benue and of course, now in Bauchi. But apart from
providing a reliable source of captive power for these institutions, each
institution will have a renewable energy workshop and a training center to
provide training for students on renewable energy."

 

He said "the project also entails the installation of street lights and the
electro fitting of existing ones for better illumination and provision of
security on the campus and its environs. And there is a provision for
on-the-job training for 20 female students undergoing STEM courses in the
beneficiary institutions. The training focuses on the design and
installation of various components of the project."

 

While commending the implementing agency, the Rural Electrification Agency
(REA) for its hard work and resourcefulness in the implementation of the
programme, Professor Osinbajo charged the agency to redouble its effort in
"rolling out the Energizing Education Programme with speed and quality
across the country".

 

In the same vein, the Vice President acknowledged and commended what he
described as "a strong display of partnership between the Federal Ministries
of Power, Education and Environment, the National Universities Commission
and the Nigeria Electricity Regulatory Commission", in making the project a
reality.

 

It would be recalled that the Federal Government, under the EEP has
inaugurated 3 solar off-grid hybrid power plants in 3 universities located
in Kano, Ebonyi, and the Benue States.

 

In August 2019, through the Rural Electrification Agency, the Federal
Government completed and inaugurated the first plant under the EEP, a 2.8MW
first solar hybrid power plant at Alex Ekwueme Federal University
Ndufu-Alike Ikwo (FUNAI) in Ebonyi State. The project also included the
lighting of 7.5 KM of solar-powered street lights in the university.

 

In September of the same year, the Buhari administration commissioned the
largest off-grid solar hybrid power plant in Africa at Bayero University,
Kano (BUK). The project which is providing students and faculty with
constant electricity supply also includes the provision of 11.41 kilometres
of solar-powered street lights as well as a world-class renewable energy
training centre.

 

In the same vein in December 2020, the Federal Government commissioned an
8.25M Solar Hybrid Power plant at the Federal University of Agriculture
(FUAM), Makurdi, Benue State. As a result, FUAM students and faculty now
have access to electricity supply from the solar power plant. The project
also includes the installation of 13.23km solar-powered streetlights for
illumination and safety on the University campus.

 

All universities, under the programme are also provided with world-class
renewable energy workshops and training centres.

 

In another development, the Vice President presided over the inaugural
meeting of the Cabinet Committee for the Review of the Draft National
Transport Policy.

 

The terms of reference of the Committee include the determination of "which
ministry or agency has statutory authority to administer tolls on Nigeria
roads," and to determine the "appropriate roles of the Ministry of Finance,
Budget and National Planning and the Ministry of Works and Housing vis a vis
the Ministry of Transportation in respect of the Road Fund proposed by the
policy."

 

Committee members at the meeting held at the Presidential Villa include
Transport Minister Rotimi Amaechi, Works and Housing Minister Babatunde
Fashola, and Budget and National Planning Minister of State Clem Agba who
represented the Finance Minister.-Vanguard News Nigeria

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

Dairibord

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


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