Major International Business Headlines Brief::: 16 February 2021

[Bulls n Bears]

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Major International Business Headlines Brief::: 16 February 2021

 


 

 


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ü  Fake Amazon reviews 'being sold in bulk' online

ü  Jaguar car brand to be all-electric by 2025

ü  Mercedes emergency call bug: Carmaker recalls vehicles

ü  Japan's economy shrinks 4.8% in 2020 due to Covid

ü  Pound hits three-year high on vaccination hopes

ü  Asia sets up global stocks for extended bull run on economic optimism

ü  Norway wealth fund tells firms: put more women on your boards

ü  Bill Gates warns that manufacturing could challenge climate goals

ü  Oil prices climb as deep freeze shuts U.S. oil wells, curbs refineries

ü  Learjet, the private plane synonymous with the jet-set, nears end of runway

ü  BHP sees robust China demand, declares dividend bonanza

ü  Rwanda: Another 15 Megawatts to Be Extracted From Lake Kivu Methane Gas By June

ü  Tanzania: Trucks Assembly Plant to Employ Over 400 Locals

ü  Nigeria: Shell Reports Nigeria to World Bank Panel Over Oil Spill Dispute

ü  Namibia: Mass Demo Planned to Reverse Air Namibia Decision

 

 

 


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Fake Amazon reviews 'being sold in bulk' online

Fake reviews for products sold on Amazon's Marketplace are being sold online "in bulk", according to Which?

 

The consumer group found 10 websites selling fake reviews from £5 each and incentivising positive reviews in exchange for payment or free products.

 

It suggested the firm was facing an "uphill struggle" against a "widespread fake reviews industry".

 

An Amazon spokesman said: "We remove fake reviews and take action against anyone involved in abuse."

 

The retail giant's Marketplace allows other retailers to sell their goods via the Amazon website.

 

Which? identified websites offering review services for goods for sale on Amazon Marketplace that violated the firm's terms and conditions.

 

'Loyalty schemes'

These included "packages" of fake reviews available for sellers to buy for about £15 individually, as well as bulk packages starting at £620 for 50 reviews and going up to £8,000 for 1,000.

 

The group also suggested that five of the businesses it looked at had more than 702,000 "product reviewers" on their books.

 

Product reviewers are offered small payments ranging from a few pounds up to more than £10, alongside free or discounted products. They can even take part in "loyalty schemes" and earn themselves premium goods, from children's toys to exercise equipment.

 

The websites Which? reviewed also offered advice on how to write reviews so as not to arouse Amazon's suspicion, and in some cases had criteria for reviewers to meet to qualify for rewards, it said. They included leaving reviews that were at least two sentences long, or including photos, for example.

 

Natalie Hitchins, head of home products and services at Which?, called on the Competition and Markets Authority (CMA) to look into the sale of fake reviews urgently.

 

"The regulator must crack down on bad actors and hold sites to account if they fail to keep their users safe," she said.

 

"If it is unable to do so, the government must urgently strengthen online consumer protections."

 

A previous investigation by the consumer group found dozens of Facebook groups with sellers offering refunds or commissions in exchange for fake, favourable reviews.

 

It led to Facebook and eBay signing agreements with the CMA to "better identify, investigate and respond to fake and misleading reviews".

 

But Ms Hitchins said: "Amazon, and other online platforms, must do more to proactively prevent fake reviews infiltrating their sites so that consumers can trust the integrity of their reviews."

 

An Amazon spokesman pointed out that it worked with other tech firms to "report bad actors", but added that online retailers "cannot do this alone".

 

He said that customers need to be able to trust the reviews they see online and that more enforcement powers should be given to regulators such as the CMA.

 

As demand for online shopping grew at the beginning of the coronavirus pandemic, the UK regulator launched a review into how different websites detect and respond to fake and misleading reviews.

 

The authority warned last May it would "not hesitate" to take action if sites were disobeying the law.

 

That could include taking major retailers to court, although it did not name the specific websites it would be investigating.--BBC

 

 

 

Jaguar car brand to be all-electric by 2025

Jaguar Land Rover's Jaguar brand will be all-electric by 2025, the carmaker has said.

 

The company will launch electric models of its entire Jaguar and Land Rover line-up by 2030, it added.

 

The firm said it would keep all three of its three British plants open as part of its new strategy.

 

But it has dropped plans to build an electric version of its XJ saloon at the Castle Bromwich plant, meaning the site will eventually stop making cars.

 

Chief executive Thierry Bolloré said the plant would focus instead on "non-production" activities in the long term, without giving details.

 

The company plans to spend about £2.5bn a year on new technology for its cars.

 

This is a big move for Jaguar Land Rover, but the reality is it has little choice.

 

Like other manufacturers, it is under pressure to reduce the CO2 emissions from its fleet, as new regulations come into force in Europe and elsewhere. At the same time, sales of diesels - which generally produce less CO2 than petrol engines - have been plummeting.

 

And in the longer term, the UK government wants to outlaw the sale of all wholly petrol and diesel cars from 2030. Governments in other countries are moving in the same general direction.

 

The problem is, electric cars cost more to design and build than conventional models, meaning it is currently hard to make a profit from them. Bigger manufacturers can throw money at the problem now, and hope to benefit from economies of scale later.

 

JLR is a smaller company and can't do that - so instead it will re-emphasise Jaguar's credentials as a luxury brand when it goes all-electric.

 

That might make sense from a marketing point of view, but making the sums add up looks like a steep challenge.

 

It will also invest in hydrogen fuel cell technology. Fuel cells provide electric power, without producing tailpipe emissions - water is the only by-product.

 

However, in order for them to be truly environmentally friendly, the hydrogen itself needs to be produced using renewable sources.

 

Transport Secretary Grant Shapps said the announcement was "a huge step for British car manufacturing".

 

Carmakers are under pressure to meet stringent carbon emission demands in Europe and China, as well as customer demand for high-performance electric cars with a luxury or performance feel.

 

The UK plans to ban the sale of new petrol and diesel cars from 2030.

 

Luxury car brand Bentley Motors, owned by Germany's Volkswagen, said in November its range will be fully electric by 2030, and last month General Motors said it aimed to have a zero tailpipe emission line-up by 2035.--BBC

 

 

 

Mercedes emergency call bug: Carmaker recalls vehicles

Mercedes-Benz is recalling more than one million cars over a safety defect with the cars' emergency call system.

 

The problem is with the cars' eCall feature, which alerts emergency services of an accident and relays a vehicle's location to them.

 

But a fault means it is possible that the wrong location could be sent.

 

The problem affects 1,292,258 cars in the United States, and the company says it is preparing a fix for customers in other countries too.

 

The safety recall information form the US National Highway Traffic Safety Administration said that Mercedes "determined that a safety risk cannot be ruled out".

 

Because the problem is software-related, the fix can usually be done "over the air" - via a wireless download using the car's existing mobile data connection.

 

But if it cannot, due to a bad connection or other problems, owners will be able to bring their cars into an authorised dealer to have the update applied.

 

The eCall system is mandatory in the EU for all cars sold since 2018 - and the US documents reveal that the reason for the investigation was a known case of the wrong location being sent "in the European market" in October 2019.

 

Mercedes-Benz in the UK told the BBC: "This software update will also be implemented in other countries and we are in close contact with the local authorities."

 

But it said it was not providing any further details until an official announcement of the fix.

 

What went wrong?

In the US, all 1,292,258 affected vehicles will have to receive a software update to fix the problem.

 

That includes more than 200 different models and variants made between 2016 and 2021, including:

 

CLA-Class, GLA-Class, GLE-Class, GLS-Class, SLC-Class

A-Class, GT-Class, C-Class, E-Class, S-Class, CLS-Class

SL-Class, B-Class, GLB-Class, GLC-Class, and G-Class vehicles

The fault, Mercedes said, was in the software connected to the communications module used by the emergency call system.

 

"In rare cases, this could mean that in the event of an accident-related temporary drop in a vehicle's voltage, the communication module might not communicate the correct current position when an emergency call is made/triggered," a spokeswoman for the car-maker said.

 

"All other functions of the automatic and manual emergency call function remain fully operational," she added.

 

Mercedes also said that it had discovered the fault itself due to its safety monitoring programme, which it said was a "top priority" for the company.--BBC

 

 

Japan's economy shrinks 4.8% in 2020 due to Covid

Japan's economy surged in the fourth quarter of 2020, but it was not enough to keep the country from negative growth for the year.

 

The economy beat expectations to grow by 3% between October and December compared to the same period in 2019.

 

But growth was considerably slower than in the previous quarter, when the economy expanded 5.3%.

 

Japan's economy shrank 4.8% over the full year, its first contraction since 2009.

 

The growth figures come as Japan's Nikkei index briefly hit 30,000 for the first time since 1990.

 

The world's third-largest economy suffered its worst post-war quarterly contraction between April and June, as the global pandemic hit domestic consumption and exports.

 

But consumption and exports, which are both key drivers of the Japanese economy, also fuelled a rebound in the second half of the year.

 

Private consumption, which makes up more than half of the economy, rose 2.2% in the final quarter of 2020, slowing from the 5.1% increase in the previous quarter.

 

Stronger economic growth globally in the third and fourth quarters also helped Japanese businesses sell more of their products overseas.

 

Annualised growth - which assumes the quarter's growth will be maintained for the whole year - was 12.7%, suggesting Japan could be on track for a strong and rapid recovery.

 

But growth is still fragile, and could be hampered by restrictions aimed at limiting another wave of Covid-19.

 

Takumi Tsunoda, senior economist at Shinkin Central Bank Research, expects the recovery to struggle because Japan lags behind western economies in vaccine distribution.

 

"The conditions are such that Japan will not be able to avoid negative growth in the first quarter," he told Reuters.

 

"There is a high possibility that there will be a repeating cycle of coronavirus infections spreading and being contained this year, which means that consumption is not likely to recover at the expected pace."

 

In December, the government announced another round of stimulus aimed at pulling the world's second largest economy out of its slump.

 

The 73.6tr yen ($708bn; £530bn) package took Japan's total stimulus spending to around $3tr.--BBC

 

 

 

Pound hits three-year high on vaccination hopes

The pound has hit its highest level against the dollar in nearly three years, amid rising optimism about an end to lockdown in the UK.

 

It surpassed $1.39 on Monday, while also hitting a nine-month high against the euro at €1.147.

 

More than 15 million people have now had their first Covid jab, raising hopes that restrictions can soon be eased and the economy start to recover.

 

Boris Johnson will set out his plan for exiting England's lockdown next Monday.

 

Chris Turner, global head of markets at ING, said: "[The pound] continues to reap the dividends of a successful vaccine rollout and momentum is building towards a reopening of the economy - probably starting with schools on 8 March."

 

The UK's main share index, the FTSE 100, also climbed on Monday, rising by 2.6%.

 

On Monday, the prime minister said his plan for exiting lockdown would be "cautious but irreversible".

 

He said it would target dates for changes "if we possibly can", but he warned high rates of infection could lead to delays.

 

The UK has vaccinated more than 15 million people with a first dose and 500,000 with a second dose, the fastest rollout per capita of any large country.

 

England, which has about 85% of the UK population, also launched a hotel quarantine system on Monday.

 

Passengers arriving from any of 33 "red list" countries will have to spend 14 days in a hotel room under new border restrictions designed to stop new variants of the coronavirus.

 

Markets boost

European stock markets were also higher because of optimism about the rollout of Covid-19 vaccines and new fiscal aid for the US from Washington.

 

Spain's Ibex 35 climbed 2% while the French Cac 40 gained 1.7%. US markets are closed.

 

Oil prices meanwhile hit a 13-month high, driving up shares in energy companies such as BP and Royal Dutch Shell.

 

"Natural resource stocks are benefitting from the wider optimism that the global economy will recover and in turn, mineral demand will rise," said David Madden from CMC Markets.--BBC

 

 

 

Asia sets up global stocks for extended bull run on economic optimism

TOKYO (Reuters) - Asian shares advanced on Tuesday, putting world equities on course to extend their bull run for a 12th consecutive session as optimism about the global economic recovery and expectations of low interest rates drive investments into riskier assets.

 

Oil prices soared to a 13-month high as a deep freeze due to a severe snow storm in the United States not only boosted power demand but also threatened oil production in Texas.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan ticked up 0.45% while Japan’s Nikkei rose 0.4% to a 30-year high.

 

In Hong Kong, the Hang Seng Index surged 1.79% to hit a 32-month high in its first trading session since Thursday following the Lunar New Year holidays.

 

Mainland Chinese markets will remain closed for the holidays until Thursday while Wall Street was also shut on Monday.

 

Ord Minnett advisor John Milroy said while share markets were positive investors were becoming wary of the future risk of inflation due to central bank and government stimulus programmes in place around the world.

 

“There is a clear sense with rates staying low for some time yet and investor appetite for equities staying strong we will likely see markets hold up for some time yet,” Milroy told Reuters.

 

“Gaining traction is the thought that inflation could rise much faster and sooner than the Fed is currently thinking. Then if they do raise rates to combat it what happens to equity markets and of course bond markets.”

 

The bullish view on the economy lifted bond yields, with the 10-year U.S. Treasuries gaining 5 basis points to 1.245% in early Asian trade, its highest since late March.

 

Investors are looking to the minutes from the U.S. Federal Reserve’s January meeting, due to be published on Wednesday, for confirmation of its commitment to maintain its dovish policy stance over the near future. That in turn is set to keep a tab on bond yields.

 

But some analysts say investors should keep a wary eye on bond yields.

 

“If U.S. bond yields keep rising, that could start to unsettle stocks,” said Masahiro Ichikawa, chief strategist at Sumitomo Mitsui DS Asset Management.

 

S&P500 futures traded 0.65% higher to a record level and MSCI’s all country world index (ACWI), which has risen every single day so far this month, ticked up slightly.

 

Successful rollouts of COVID-19 vaccines in many countries are raising hopes of further recovery in economic activities hampered by range of anti-virus curbs.

 

U.S. President Joe Biden is pushing ahead with his plan to pump an extra $1.9 trillion in stimulus into the economy, in a further boost to market sentiment.

 

Oil prices soared to their highest in about 13 months as a U.S. winter storm added fuel to their rally on hopes of further demand recovery.

 

U.S. crude futures traded up 1.1% at $60.11 per barrel.

 

Prices have rallied over recent weeks on tightening supplies, largely due to production cuts from the Organization of the Petroleum Exporting Countries (OPEC) and allied producers in the wider OPEC+ group of producers.

 

Rising oil prices supported commodity-linked currencies such as the Canadian dollar while safe-haven currencies including the U.S. dollar took a back seat.

 

The British pound held firm at $1.3910, staying at its highest levels since April 2018.

 

The offshore Chinese yuan hit a 2-1/2-year high of 6.4010 per dollar overnight and last stood at 6.4030.

 

MSCI’s emerging market currency index hit a record high as well.

 

The yen weakened to 105.36 per dollar, edging closer to its four-month low of 105.765 set on Feb. 5. while the euro was up 0.1% at $1.2142.

 

In Asia, Bitcoin was trading at $48,088.28, off its record high of $49,715 hit on Sunday.

 

 

 

Norway wealth fund tells firms: put more women on your boards

OSLO (Reuters) - Norway’s $1.3 trillion sovereign wealth fund, the world’s largest, wants the companies it invests in globally to boost the number of women on their boards and to consider setting targets if fewer than 30% of their directors are female, top fund officials told Reuters.

 

One of the world’s largest investors, the fund holds stakes in around 9,200 companies worldwide, owning 1.5% of all listed stocks. It has set the pace on a host of issues in the environmental, social and corporate governance (ESG) field.

 

Boards where either gender has less than 30% representation should consider setting targets for gender diversity and report on progress, the fund said in a position paper shared with Reuters ahead of its publication later on Monday.

 

“We may phrase it politely, but it is pretty clear what we think,” Chief Executive Nicolai Tangen said in an interview.

 

“What we want to see is better representation of women on the boards,” added Carine Smith Ihenacho, the fund’s chief governance and compliance officer.

 

“Diversity is good for the board because it brings better perspective, it is better for decision-making and increasingly important for the legitimacy of companies,” said Smith Ihenacho.

 

“It (a lack of female representation) could also be a red flag, that a company does not have a good process to recruit the best director.”

 

Most other big institutional investors have a general request for boards to be diverse, and some are increasingly prepared to oppose boards they consider are not diverse enough, but they typically have not set precise targets for female representation.

 

In 2003 Norway became the first country in the world to impose a gender quota, requiring nearly 500 firms, including 175 firms listed on the Oslo bourse, to raise the proportion of women on their boards to 40%.

 

Some other countries have followed along similar lines, such as Britain, which is aiming for 33% representation on FTSE 350 boards.

 

Starting with the upcoming AGM season, the Norwegian fund will apply pressure by voting against appointments to the nomination committees of companies that do not have at least two women on the board.

 

“We will start with developed markets and at companies where women are underrepresented, at large and mid cap companies in the U.S. and Europe,” said Smith Ihenacho.

 

She did not name names, but candidates for attention this year may include British carmaker Aston Martin and used car online auction firm Copart in the United States, which have one woman, respectively, on their boards.

 

The fund will refrain from voting against if companies can have a “very good explanation, like a clear plan, with clear targets, or because of a recent resignation that affected the gender balance on this board”, said Smith Ihenacho.

 

Last year the fund voted against the nomination committees of 16 companies, all large and mid cap companies in the United States and Europe, because they had all-male boards, she said. One of them was London-listed Domino’s Pizza, fund data showed. The firm has since then appointed two women to its board.

 

Dialogue with companies and voting at AGMs is the focus of the policy, she added, rather than divesting from companies that do not comply with the policy.

 

Still, the fund can, and does, divest from companies that do not comply with its positions on ESG issues it prioritises: last year, it divested from seven companies over tax transparency.

 

The fund only has a specific target on gender diversity currently and not on other aspects such as age or ethnicity, for example, because the latter can vary in relevance from sector to sector or from country to country, said Smith Ihenacho.

 

“But what is relevant for all countries is that women in general are underrepresented and that is why we have a target (on gender),” said Smith Ihenacho.

 

Globally, 17% of company boards do not have a single woman, she said.

 

“We really think diversity creates better thinking and better creativity and better business, really,” said Tangen.

 

“The more diverse the group of people who sit together, the more creative solutions you get and so the better business. You get better innovations, better solutions. It is just good.”

 

 

 

Bill Gates warns that manufacturing could challenge climate goals

WASHINGTON (Reuters) - Bill Gates exudes optimism in discussing the world’s ability to tackle climate change – until he hits on manufacturing. About that, he is worried.

 

There is currently no way to make steel or cement without releasing climate-warming emissions. Yet, neither governments nor investors are looking hard to solve that problem, Gates said.

 

“That’s the sector that bothers me the most,” Gates said in a video interview with Reuters ahead of the publication this week of his book, “How to Avoid a Climate Disaster.”

 

The software-developer-turned-philanthropist has invested some $2 billion toward the development of clean technologies. But those investments are mostly in electricity generation and storage.

 

Manufacturing – especially in the cheap construction staples steel and cement – accounts for roughly a third of global greenhouse gas emissions. That makes manufacturing more polluting than the power or transportation sectors, which receive far more attention in policies and investments. And the manufacturing sector is set to grow, as the global population climbs and countries further develop.

 

“People still need basic shelter, certainly in developing countries,” said Gates, co-founder of Microsoft Corp. “It’s unlikely we’ll stop building buildings.”

 

Gates plans to push for more research and innovation at the U.N. climate conference in Glasgow in November. “The idea is to get innovation, including R&D, onto the agenda … not just looking at the easy stuff.”

 

During the 2015 U.N. climate talks in Paris, Gates helped to launch a global initiative called Mission Innovation along with U.S. President Barack Obama, France’s President Francois Hollande and Indian Prime Minister Narendra Modi to link national governments with the private sector in pursuing and sharing clean technology.

 

We need “total coordination, and in fact some overlap is a very good thing to have,” Gates told Reuters. But he said there should be diversity in the solutions being sought so governments do not end up duplicating efforts.

 

Right now, for example, “they’re doing a lot of green hydrogen products,” Gates said. “But who’s doing the hard stuff?”

 

Some manufacturing plants may be able to lower their emissions by plugging into an electricity grid run on renewable energy. But that will not solve all emissions from steel- and cement-making, both processes that release carbon dioxide as a byproduct.

 

In the United States, it hasn’t helped to have energy policy yo-yo between presidential administrations, he said. “This stop-start approach, that’s too risky for the private sector.”

 

On a personal note, Gates says in his book that, after years of dismissing activists’ calls to divest from fossil fuels, he sold his direct holdings in oil and gas companies in 2019. The Gates Foundation’s endowment did the same – but not because Gates became convinced that divestment would push companies toward clean energy.

 

Rather, “I don’t want to profit if their stock prices go up because we don’t develop zero-carbon alternatives,” he writes. “I’d feel bad if I benefited from a delay in getting to zero.”

 

 

 

Oil prices climb as deep freeze shuts U.S. oil wells, curbs refineries

SINGAPORE (Reuters) - Oil prices rose on Tuesday as a cold front shut wells and refineries in Texas, the biggest crude producing state in the United States, the world’s biggest oil producer.

 

Prices also gained as Yemen’s Iran-aligned Houthi group said it struck airports in Saudi Arabia with drones, raising supply concerns in the world’s biggest oil exporter, and on optimism for a global economic recovery amid accelerated COVID-19 vaccine rollouts.

 

Brent crude was up 35 cents, or 0.6%, at $63.65 a barrel at 0434 GMT, after rising to its highest since January 2020 in the previous session.

 

U.S. West Texas Intermediate (WTI) crude futures gained 82 cents, or 1.4%, to $60.29 a barrel. WTI did not settle on Monday because of a U.S. federal holiday. Prices will settle at the close of trading on Tuesday.

 

“The unexpected U.S. supply disruption provides another short term price recovery bridge that has likely taken oil prices to a level where markets were eventually heading but just a little bit quicker than expected,” Stephen Innes, chief global markets strategist at Axi said in a note on Tuesday.

 

The cold weather in the United States halted Texas oil wells and refineries on Monday and forced restrictions on natural gas and crude pipeline operators.

 

The rare deep freeze prompted the state’s electric power suppliers to impose rotating blackouts, leaving nearly 3 million homes and businesses without power.

 

Texas produces roughly 4.6 million barrels of oil per day and is home to 31 refineries, the most of any U.S. state, according to Energy Information Administration data, including some of the country’s largest.

 

In the Middle East, Yemen’s Iran-aligned Houthi group said on Monday it had struck Saudi Arabia’s Abha and Jeddah airports with drones.

 

The Saudi-led coalition fighting the Houthis in Yemen said early on Monday morning it had intercepted and destroyed an explosive-laden drone fired by the Houthis toward the kingdom.

 

The World Health Organization (WHO) on Monday listed AstraZeneca and Oxford University’s COVID-19 vaccine for emergency use, widening access to the relatively inexpensive shot in the developing world.

 

Capping prices gains, Norway’s oil industry employers struck a wage bargain with the Safe labour union on Tuesday, preventing a strike at the Mongstad crude terminal and shutdowns of major offshore oil and gas fields.

 

 

 

Learjet, the private plane synonymous with the jet-set, nears end of runway

MONTREAL (Reuters) - Learjet, the sleek private jet used by celebrities for decades, is ending production this year, following a slump in demand due to competition from newer and less-expensive rivals.

 

Long before COVID-19 hit demand in 2020, the arrival of less-expensive similar-sized models from Embraer SA and Textron Inc’s Cessna eroded Learjet demand.

 

Created by American entrepreneur Bill Lear, the Learjet 23 first took off from Wichita, Kansas in 1963, forging a new market for modern business aircraft with owners like Frank Sinatra, while shattering speed records.

 

Some 3000 Learjets, which seat up to nine passengers, have since taken to the skies with a bullet-shaped nose, capable of flying close to the speed of sound at Mach 0.81.

 

Bombardier, which acquired Learjet in 1990, said last week production would end this year. But it will service the plane, which accounts for about 42% of its in-service fleet of just under 5,000 business aircraft, according to JETNET data.

 

Learjet’s performance, described by some private pilots as the closest they’d ever get to flying a fighter jet, couldn’t beat rivals’ lower cost.

 

“Less equipped aircraft at smaller price points drove demand,” Bombardier spokesman Mark Masluch said.

 

Embraer’s Phenom, for example, listed for about $9 million, compared with a Learjet 75, at around $13 million.

 

“Customers want a nice Mercedes in that segment, but I don’t know if they want a Ferrari anymore,” said aerospace analyst Rolland Vincent, comparing Learjet to the Italian sports car.

 

Meanwhile, wealthy buyers increasingly sought larger-cabin jets, like General Dynamics Corp’s Gulfstream and Bombardier’s own Global series with showers, beds and ranges connecting far-flung cities without refueling.

 

LOSING GROUND

Keeping older planes relevant through upgrades in an industry that covets the latest model is a useful lesson for planes like Bombardier’s Challenger 650, said Vincent.

 

Masluch said the 650 remains competitive in its market space and appeals to certain segments.

 

“It’s been a cash cow for them,” Vincent said of the 600 plane family which first flew in 1978. “But cash-cows have a way of getting fat.”

 

Bombardier’s plans for a larger Learjet 85, made of lightweight composites, didn’t materialize, ending in a $1.2 billion write-down in 2015.

 

Bombardier tried to compete on price in 2019, by launching the Liberty Learjet 75 at $9.9 million.

 

The plane nabbed an order as an air ambulance, a niche vocation for the Learjet.

 

Still, Learjet lost ground, with just 11 deliveries last year, compared with 112 deliveries in 2001, according to JETNET data and Bombardier.

 

“At the end of the day there were more current options out there,” said Guardian Jet managing partner Don Dwyer.

 

But the fast and sleek Learjet will always have its supporters, said Adam Twidell, chief executive at Private Fly.

 

The global booking service for charter flights still gets requests from passengers to “‘keep my Lear waiting,’” he said.

 

 

BHP sees robust China demand, declares dividend bonanza

MELBOURNE (Reuters) - BHP Group on Tuesday reported its best first-half profit in seven years and declared a record interim dividend, as top metals user China’s strong appetite for iron ore to support its infrastructure push kept prices elevated.

 

China’s reliance on commodity-intensive stimulus measures to sustain economic growth has sent prices of the steel making ingredient to multi-year highs, while the COVID-19 vaccination push has brightened outlook for global trade this year.

 

The world’s largest listed miner said in a statement it expects a continuation of strong Chinese demand in 2021, and recovery in the rest of the world’s global crude steel production.

 

“It’s a pretty solid result,” said portfolio manager Andy Forster of Argo Investments.

 

“Relative to expectations, it looked pretty good, strong cash flows and dividend, projects operationally performing well,” he said. “Strong iron ore and copper should set it up for a pretty good second half as well.”

 

BHP is the first of its Australian peers to report this week, with all expected to cash in on sky high prices for iron ore. Rio Tinto reports on Wednesday and Fortescue on Thursday. Last month, BHP forecast record annual iron ore output.

 

The company declared an interim dividend of $1.01 per share, up from last year’s payout of $0.65 per share.

 

Its underlying profit from continuing operations for the six months ended Dec. 31 rose to $6.04 billion from $5.19 billion last year. It missed a consensus of $6.33 billion, however, from 17 analysts compiled by research firm Vuma Financial.

 

BHP acknowledged that its coal business, which is under review for sale or spin off, has taken a hit due to a trade spat between Australia and China that the miner does not expect to be resolved any time soon. 

 

 

Rwanda: Another 15 Megawatts to Be Extracted From Lake Kivu Methane Gas By June

Shema Power Lake Kivu (SPLK) is set to produce 15 megawatts of electricity by June this year, in its first phase of methane gas extraction from Lake Kivu, engineers have said.

 

Overall, the plant seeks to add 56 megawatts to the national grid after investing $400 million in methane gas extraction.

 

The project, which started in October 2019, is set to be finalised by December 2022.

 

"This is one of the projects that will significantly increase power generation," said Laurent Butera, Branch Manager of REG in Rubavu District.

 

The first phase is expected to address the challenges of electricity shortage in Rubavu District, a strategic area for Rwandan businesses eyeing the DR Congo market.

 

Rubavu District will be the first to benefit from the methane gas plant. Currently, the district consumes between seven and 10 megawatts.

 

Despite its strategic importance to businesses, the district relies on power supplies from Musanze and Karongi districts.

 

The constructor, Shema Power Lake Kivu (SPLK), is working with Rwanda Energy Group (REG) to fast-track the project implementation.

 

"We are constructing the pilot phase, which will determine the subsequent phases. We extract gas from 300 to 450 metres underwater," said Laurent Sibomana, an engineer at SPLK. "First, we separate gases from water, then different gases from methane, which is used to give power."

 

Sibomana added that power produced by the gas plant will be transferred to a REG power station, where it is connected to the national grid.

 

At least 74 per cent of households in Rubavu are connected to electricity, but residents say there are still challenges associated with stable supply.

 

"Sometimes power outages cause damage to equipment like fridges. We are hopeful that those problems will be solved once we have enough electricity," Odette Nyiramongi, a local hotelier, said.

 

Butera said that with a newly-built power substation in Rubavu District, these problems will soon be solved.

 

According to REG, 60 per cent of the households in Rwandan households were connected to electricity as of September 2020.

 

However, projects like methane gas extraction are expected to increase power generation in order to reach 100 per cent connectivity by the year 2024.-New Times.

 

 

 

Tanzania: Trucks Assembly Plant to Employ Over 400 Locals

TANZANIANS have started to enjoy benefits of industrialisation after seeing the first modern age vehicle assembly plant being established to assemble and sell FAO trucks locally.

 

Located in Kibaha town in the Coast Region, GF Vehicle Assemblers established by Tanzanians have already assembled more than 60 trucks since August last year, when it ventured into business.

 

"GF Vehicle Assemblers looks to expand its capacity to assemble up to 200 trucks a month and will be able to create more than 400 jobs for Tanzanians in the near future," said Ezra Mereng, GF Vehicles Assembler's General Manager.

Mr Mereng was speaking over the weekend shortly after his company secured certification from the Tanzania Bureau of Standards (TBS).

 

He added that with the intention of reducing car prices, his company was importing Complete Knock Down (CKD) parts and assembling trucks, which will see the prices going down to attract regional markets.

 

Mr Mereng said that to reach a target of assembling 200 trucks per month, his company was currently training its local employee who will later provide a workforce and increase production.

 

According to him, jobs created by GF vehicle assemblers in its mission are those targeting Tanzanians with different qualifications, adding that most of them are vocational education, college and university degree graduates.

 

Elaborating, he expressed gratitude to the government after his company secured certification from the TBS, which grants them opportunity to export the final assembled cars to the markets of East African community (EAC) and that of Southern African Development Community (SADC).

 

"We plan to start assembling other types of cars including the saloon cars in the coming future in accordance with the market demand," he said.

 

The TBS Director General, Dr. Yusuf Ngenya said granting certificates and licenses to use TBS standard mark will help manufacturers, including GF vehicle assemblers to compete and penetrate in the regional markets particularly in the EAC and SADC.

 

"With the TBS quality mark, the local produced goods including the assembled vehicles will not be liable for testing standards in the regional markets.-Daily News.

 

 

 

Nigeria: Shell Reports Nigeria to World Bank Panel Over Oil Spill Dispute

Royal Dutch Shell Plc along with its Nigerian subsidiary, the Shell Petroleum Development Company (SPDC), has launched arbitration proceedings against the federal government over a long-running dispute with a Rivers community.

 

The oil major's Netherlands-registered holding company and SPDC filed the case at the World Bank's International Centre for Settlement of Investment Disputes (ICSID) on February 10.

 

This is coming as the Joint Venture (JV) between the Nigerian National Petroleum Corporation (NNPC) and Total E & P targets to hit first oil in the $500 million Ikike Oilfield from the last quarter of 2021.

 

A post on the website of the Washington-based World Bank dispute resolution body, indicated that the hearing of the case marked "Shell Petroleum N.V. and The Shell Petroleum Development Company of Nigeria Limited v. Federal Republic of Nigeria (ICSID Case No. ARB/21/7)" was still pending.

 

It listed the claimant's representative as Debevoise & Plimpton, London, UK and New York, NY, U.S.A, while the respondents representatives were named as the Attorney-General of the Federation and Minister of Justice, Abuja, Nigeria, Solicitor-General of the Federation and Permanent Secretary to the Federal Ministry of Justice, Abuja, Nigeria as well as the Federal Ministry of Justice.

 

The World Bank's arbitration body is a leading institution devoted to international investment dispute settlement, having administered the majority of all international investment as agreed to by participating states.

 

It was set up under a multilateral treaty formulated by the executive directors of the World Bank to further its objective of promoting international investment. It was established in 1966 by the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID Convention) and has handled over 700 cases.

According to the organisation, Shell brought its claim against Nigeria under the bilateral investment treaty between the governments of The Netherlands and Nigeria.

 

Bloomberg reported that the decision to drag the country to the arbitration panel followed the Anglo-Dutch energy giant's unsuccessful efforts last year to reverse a court order instructing the company to pay compensation to a community for polluting its land.

 

While the case's victors say they are now owed more than N183 billion ($479 million), Shell contests that valuation and denies being responsible for the decades-old oil spill.

 

"Given the history of this particular case, we are seeking protection of our legal rights from an international tribunal," Bloomberg quoted a spokeswoman for Shell's Nigerian subsidiary as saying in an emailed statement, without providing further details about the oil major's case.

All of Shell's appeals against the ruling have been dismissed, most recently by Nigeria's Supreme Court in November.

 

Shell operates the oil block at the heart of the dispute, which is known as Oil Mining Lease (OML) 11, in a joint venture with the NNPC, Total SE and Eni SpA.

 

THISDAY's checks showed that it's the same oilfield that has been in contention between the people of Ejema/Ebubu in Eleme, the Rivers State government and the SPDC.

 

NNPC, Total target first oil in Ikike field October

 

The joint venture between the NNPC and Total E & P is targeted to hit first oil in the $500 million Ikike Oilfield well from the last quarter of 2021.

 

The Managing Director of Total E & P, Mr. Mike Sangster, stated this at the weekend when he visited the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Simbi Wabote, at its headquarters in Bayelsa.

 

The Ikike oilfield is located in a water depth of 20m in the Oil Mining Lease (OML) 99, approximately 20 kilometres offshore Nigeria and is owned by a JV comprising Total E&P Nigeria (40 per cent, operator) and NNPC (60 per cent).

 

Total is expected to invest $500 million in the project, which is forecast to produce 32,000 barrels of oil per day when fully operational while the coating project would be executed by 100 per cent Nigerians workforce of over 300 direct personnel.

 

Sangster said: "The company has made significant progress with the development of the Ikike oilfield and would record first oil before the end of 2021.

 

"It had been difficult developing the project, particularly with the pandemic", but added that "we are making progress and we appreciate the support from the NCDMB."

 

He stated that the company had operated in Nigeria for 60 years and is the only International Oil Company (IOC) that operates in the upstream, midstream and downstream sectors of the Nigerian oil and gas industry.

 

According to him, the company developed the last three Floating Production Storage and Offloading (FPSO) platforms in Nigeria and Egina created new records, one of which is recording 40 million man-hours in-country.

 

Commenting on the Petroleum Industry Bill (PIB), which underwent public hearing in the National Assembly in January, Sangster, who is also the chairman of the Oil Producers Trade Section (OPTS), the umbrella body of major oil producers, urged federal legislators and policy makers to ensure that the fiscal provisions in the law are fair to key stakeholders, so as to stimulate new investments in the industry.

 

Wabote, in his comments, charged the International oil and gas companies to emulate Total E&P in sponsoring new projects and refuse to be deterred by the delayed passage of PIB.

 

Wabote said Total E&P was the only international operating company that had taken Final Investment Decisions (FIDs) and sanctioned major oil and gas projects in recent times in Nigeria despite the delayed PIB.

 

While expressing confidence in the determination of the National Assembly to pass the PIB after being delayed for over 15 years, Wabote encouraged other IOCs to forge ahead with their new projects.-This Day.

 

 

Namibia: Mass Demo Planned to Reverse Air Namibia Decision

The largest trade union in the country, the National Union of Namibian Workers (NUNW), is organising a demonstration this week in a bid to reverse the closing down of Air Namibia and to call for the resignation of public enterprises minister Leon Jooste.

 

Calling Air Namibia a national asset and a valuable source of employment, a disappointed NUNW secretary general Job Muniaro yesterday told New Era the demonstration planned for Wednesday will start at the union's head office and will end at the Swapo Party head office.

 

"The liquidation of Air Namibia is against the will of the people. We never voted for Swapo to put people in positions to auction off this country. These people must improve the livelihood of all Namibians," said Muniaro.

 

The NUNW chief also questioned why alternative measures, such as new directors and management, were not taken to rescue the ailing airline.

 

"We will never get those jobs back and there is no guarantee we will ever get a national airline back," Muniaro bemoaned, adding "They must withdraw the liquidation and Jooste must go".

Weighing in on the debacle, All People's Party president Ignatius Shixwameni said his party completely rejects the liquidation of Air Namibia and other state assets.

 

The opposition politician added there can be no compromise on workers and their families lives, and that SOEs must be protected and defended at all times.

 

"We must just do away with cronyism and recruit proper qualified and dedicated Namibian professionals to head those institutions and also be board members of such institutions. The policy of 'comrades for recruitment' must fall. Let us recruit competent and capable black Namibians to run all Namibian institutions," said Shixwameni.

 

Meanwhile, Rally for Democracy and Progress president Mike Kavekotora said, unfortunately, the liquidation of the national airline became the only viable option after the executive ignored repeated advice from his party.

"We must remember that the airline has been technically insolvent for a number of years and effectively cannot meet its obligation and, therefore, forced to liquidate," said Kavekotora.

 

Then, the International Association for Air Transport (IATA), which has 265 members from 117 nations and of which Air Namibia was a member, said the liquidation will leave Namibia without a local airline capable of providing the long-haul connectivity essential for economic recovery.

 

This recovery, said IATA, is heavily dependent on tourism and exports of high-value gemstones, fish, meat and other perishables that require national air connectivity.

 

"There can be no doubt the present pandemic and accompanying economic crisis placed Air Namibia under even greater financial distress," said an IATA spokesperson in Geneva, Switzerland.

 

IATA also called on the Namibian government to provide support and relief to the rest of the country's air transport, aviation and tourism industry, including its infrastructure service providers and aviation safety regulator, without which it will struggle to recover the domestic economy, which is dependent on the connectivity and efficiencies that only air transport is capable of providing.

 

"Funding for this type of support is available. International financial aid and donor agencies have pledged over US$30 billion (about N$440 billion) for governments to support air transport and tourism businesses across Africa, including Namibia," IATA stated.

 

However, the association said it is yet to see this support reach where it is needed, calling for financial administrative bottlenecks to be unblocked.-New Era.

 

 

 

 

 


 


 


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.

 


 

 


(c) 2021 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:  <mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77 344 1674

 


 

 

 

 

 

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