Major International Business Headlines Brief::: 27 February 2021

Sat Feb 27 07:39:14 CAT 2021

 <https://bullszimbabwe.com/> 

 <http://www.bullszimbabwe.com> Bullszimbabwe.com         <mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments        <https://bullszimbabwe.com/category/blogs/bullish-thoughts/> Bullish Thoughts        <http://www.twitter.com/BullsBears2010> Twitter         <https://www.facebook.com/BullsBearsZimbabwe> Facebook           <http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn          <https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp         <mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Major International Business Headlines Brief::: 27 February 2021

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

ü  Budget 2021: Rishi Sunak to inject £126m to boost traineeship scheme

ü  Airbnb predicts 'significant' travel rebound

ü  Budget 2021: Stamp duty holiday deadline 'may cost us £12,000'

ü  Kalifa review: UK 'needs a wake-up call' over fintech investment

ü  British Airways owner IAG calls for digital health passes

ü  Coronavirus: EU urged to adopt 'vaccine passports'

ü  GameStop surges again as Reddit crashes temporarily

ü  Wall Street Week Ahead: Investors weigh new stock leadership as broader market wobbles

ü  Airline CEOs urge White House support for greener aviation fuel

ü  Robinhood plans confidential IPO filing as soon as March: Bloomberg News

ü  Biden on track to apply Trump-era rule targeting Chinese tech supply chain concerns

ü  Texas power crisis could cripple small marketers, unravel market deregulation

ü  SoftBank reaches settlement with former WeWork CEO Neumann

ü  Citigroup revises earnings lower after losing Revlon case

ü  Kenya: MPs Refuse to Ratify Trade Pact Between Kenya and UK

ü  Kenya Space Agency to Launch Two Mini-Rockets

ü  Nigeria: Dangote Promises to Protect Shoreline, Fishing Activities in Lekki Communities

ü  Namibia: Govt Shuts Down Investors' Website

 <https://www.facebook.com/Hyundaizimbabwe/> 

Budget 2021: Rishi Sunak to inject £126m to boost traineeship scheme

Chancellor Rishi Sunak is set to announce a £126m boost for traineeships in England in his Budget on Wednesday.

The scheme will include a new "flexi-job" apprenticeship that will enable apprentices to work with a number of different employers in one sector.

Unemployment is at its highest level in almost five years, with younger and typically lower-paid workers bearing the brunt of job losses.

Mr Sunak said it was "vital" support continued to get people back into work.

The Chancellor's boost to existing apprenticeship and traineeship programmes will include playing up to double the current cash incentive to firms who take on an apprentice, regardless of age.

Traineeships are intended to get people into their first job after education. They last from six weeks to six months and they are open to people aged between 16 and 24.

Currently, firms in England are given £2,000 for every new apprentice they take on under the age of 25, and £1,500 for those over 25, in addition to a £1,000 grant they are already getting under another project.

So the government says the planned £126m investment could enable 40,000 more traineeships.

While he is committed to helping jobseekers and employers, Mr Sunak warned in an interview with the Financial Times that the UK's finances were now "exposed".

"Because we now have far more debt than we used to and because interest rates . . . at least a month or two ago were exceptionally low, that means we remain exposed to changes in those rates," he said.

"That why I talk about levelling with people about the public finances [challenges] and our plans to address them."

He added that the UK's exposure to a rise of one percentage point across all interest rates meant adding £25bn a year to the government's cost of servicing its debt.

Reform needed

The Chartered Institute of Personnel and Development (CIPD), which represents HR professionals, welcomed the move, but said it would like to see reform of the apprenticeships system to make it more flexible.

"Changing the apprenticeship levy to make it a flexible training levy would achieve a bigger boost to skills development than incentives alone," said Lizzie Crowley, skills adviser for the CIPD.

She stressed that awareness of traineeships is very low: "Besides providing additional funding for placements, the government will have to do much more to market them to employers to boost uptake."

The Federation of Small Businesses (FSB), which had previously called for flexi-job apprenticeships, said the increase in incentives for employers was "important", because the current level of support "is not leading to enough starts".

"It will be important in the budget to take wider action to support jobs, including on employers national insurance and reintroducing the jobs retention bonus," said the FSB's national chairman Mike Cherry.

"Going forward, the government should consider changing the timings of apprenticeship incentives."--BBC

Airbnb predicts 'significant' travel rebound

Online booking platform Airbnb has said it is preparing for a "significant" travel rebound as the world emerges from coronavirus lockdowns.

However the company said it was still "too early" to predict how the business would fare this year.

The company's revenue dropped 30% last year to $3.4bn (£2.4bn), as Covid-19 restrictions kept many from travelling.

That was better than many other travel companies, as people took to their cars for longer stays in private homes.

The firm said it has already seen a smaller decline in travel this year than in the last three months of 2020, when revenue was down 22% year-on-year at $859m. That was better than many analysts had expected,given the resurgence of Covid cases and fresh lockdown restrictions in many areas.

"Travel is coming back and we are laser-focused on preparing for the travel rebound," its chief executive Brian Chesky said.

Mr Chesky said he expected new travel preferences to emerge from the pandemic that will benefit his company.

He said the firm is optimistic that staying in private homes will appeal to people travelling to see family and friends. Remote working patterns will also allow people to take more frequent weekend trips - or even spend several months away from home, he suggested.

"We've seen a number of new use cases," he said. "We don't think we're ever going to go back to travel in 2019. It's going to change and it's going to be different."

However, Airbnb also warned that it still had "limited visibility for growth trends in 2021 given the difficulty in determining the pace of vaccine rollouts and the related impact on willingness to travel".

"We are not providing an outlook for the rest of 2021 at this time," it said in its first financial update for investors since its public listing in December.

Airbnb, which is active in more than 220 countries, said people around the world are travelling more domestically during the pandemic - but not enough to make up for the loss of business from international tourism.

Its business in Europe, which is fuelled by cross-border travel, was the hardest hit region in 2020, especially the UK, Germany and Italy. North America was the most stable.

Overall the firm lost $4.6bn last year, including $3.9bn in the last three months of the year, when it was hit with high costs connected with its stock market debut.

A recent survey conducted for the company in the US found that more than half of about 1,000 respondents had already booked or were planning to travel this year.

On a call with analysts, the firm faced some questions about its relationships with hosts, which has been strained this year partly due to financial losses suffered after cancellations.

But Angelo Zino, an equity analyst at CFRA, said he expected revenue to come "roaring back" as vaccines become widely distributed in the US and Europe by the summer, "reflecting the enormous amount of pent-up demand in the ecosystem".

"We believe Airbnb's business model and growth opportunities are highly attractive and struggle to find a better way to play the travel space," he said.--BBC

Budget 2021: Stamp duty holiday deadline 'may cost us £12,000'

Speculation is rife about a possible extension of the stamp duty holiday in England. Tens of thousands of property buyers have urged Chancellor Rishi Sunak to offer help. Earlier this month the BBC spoke to some of them.

With twin boys approaching the age of two, Simon Ashley and his wife Katie soon realised they needed more space at home.

So the family decided to take advantage of the stamp duty holiday and move to a bigger property just outside Harrogate.

The chain was quickly settled, and they thought they would be in their new home by Christmas.

But, with many thousands of people also planning to move during the pandemic, they now face a race to beat the tax break deadline at the end of March.

"The stamp duty holiday is a big thing for us. To put it bluntly, the impact is just over £12,000," said Simon, aged 34. "It is making us nervous.

"The problem we have being in a chain is that we don't know how it will affect the people below us. It could stop it all, which will be terrible."

Deadline looms

The tax concession in England and Northern Ireland means no stamp duty is paid on the first £500,000 of a property sale.

In Scotland, where the equivalent levy is called the Land and Buildings Transaction Tax, and in Wales, where buyers pay Land Transaction Tax, there have been temporary tax breaks too.

All are set to return to their pre-pandemic thresholds on 1 April.

For buyers - particularly those in more expensive areas, or buying larger properties - that will mean the end of a tax saving of up to £15,000.

Data from property portal Zoopla, for the BBC, suggests that between 70% and 82% of sales would be stamp duty free if they completed by the end of March.

That, and savings at the higher end of the market, created a surge in activity. In turn, that meant professionals in the sector, from surveyors and solicitors, to local councils and estate agents, were all busy.

The extra workload, at a time when many faced Covid-related staff shortages and practical working restrictions, meant delays in the house-buying process.

Nigel Moore and Fergus

image captionNigel Moore and Fergus the border collie are moving to the coast

That affected families like the Ashleys and many thousands of others, like Nigel Moore.

He is typical of a trend as people look to move out of the city to the country or coast, with regular working from home set to continue.

Plans to move to the north Norfolk coast with wife Ashley-Jane and border collie Fergus have been brought forward by years, but then delayed too by the stamp duty rush.

He says he is "looking closely at the diary", hoping to complete in time, but - as he works in the mortgage industry - he knows others will not be so lucky.

Estimates suggest that as many as 300,000 sales could fall through because the stamp duty break will expire - although there is no way of knowing yet how accurate that prediction will be.

Zoopla predicts that there will be a sudden drop-off in sales, with an expectation of 20% fewer transactions between April and June compared with the first three months of the year.

That so-called cliff-edge has prompted lobbying of ministers - and particularly of the chancellor, Mr Sunak - to extend the tax breaks.

A petition, set up by a buyer whose new home will not be built in time, is calling for a six-month extension to the stamp duty holiday. It has been signed by nearly 150,000 people.

'Only temporary'

Some in the housing sector suggest that will just create another cliff-edge, but six months later, and so they want the chancellor to think a little more imaginatively.

Beth Rudolf, from The Conveyancing Association, said: "What we'd really like is for anybody who is already in a transaction to still receive the stamp duty concession when they complete. It is all about trying to bring fairness back."

This so-called tapering, to allow buyers ready to complete to benefit, could stop the sudden drop in activity seen after stamp duty concessions used by previous chancellors. It may also stop pressure on sellers to drop their price to ensure a sale.

Finance ministers in Scotland and Wales have confirmed their plans to cancel the tax break at the end of March, giving people time to prepare, and there is still little sign of Mr Sunak doing things any differently at next month's Budget.

A Treasury spokesman said: "The temporary stamp duty cut is helping to protect hundreds of thousands of jobs which rely on the property market by stimulating economic activity.

"Its time limited nature is what has encouraged people to take advantage of the scheme."

For people like Simon Ashley, who says the money he has saved would be pumped back into the economy, that time limit may be coming a bit too soon.--BBC

Kalifa review: UK 'needs a wake-up call' over fintech investment

The UK risks losing its dominance in financial services - unless the government backs one of its most important export industries.

That's according to a major new report on arguably the UK's most globally influential sector: Fintech - the combination of finance and technology.

Ron Kalifa, the chairman of upstart-turned-giant Worldpay was tasked with drafting a report on how the UK could (and should) reinforce its leading position in financial innovation by accelerating investment in fintech.

While the UK continues to beat European competition in attracting new investment, he reported an uncomfortable truth.

Of new financial companies selling shares to fund expansion and innovation in fintech, the US-based Nasdaq index attracted 40% of new listings compared to just 5% for the UK.

His recommendations include:

Launching a fintech growth fund, which UK pension funds would be free to invest in to stop early stage companies selling to rich foreign competitors too soon

Setting up a new retraining programme, which would see further education colleges offering short courses to help workers get to grips with new, essential tech skills

Developing 10 new fintech "clusters" located across the UK

Enabling high-growth companies to keep special shares, which would leave founders in control even if they sell majority stakes on. This is common in the US but against UK rules

This reboot of UK finance is essential according to Martin Mignot, a major investor in some of the UK's most celebrated and valuable start-ups.

He is a senior partner at investment firm Index Ventures, which has invested in companies like Deliveroo and Transferwise from inception to imminent multi-billion pound public share sales (IPO listings).

He warns that the UK and London should not be complacent about their place in the financial world: "The UK needs a wake-up call.

"There was a time that setting up new fintech businesses in the UK was a no-brainer, but the UK is falling down the pecking order - in part thanks to Brexit.

"There will be major IPOs of shares coming up, which will be seen as huge UK successes but the reality is these companies are 10 to 15 years old and were set up by non-UK founders," he says.

London was recently overtaken by Amsterdam as Europe's biggest centre for trading European company shares. That business is a small fraction of the total trading done in London, but European hubs and regulators are keen to prise more financial business away from the UK post-Brexit.

UK regulators are pessimistic that the European Union (EU) will agree to recognising UK rules as "equivalent" to rules within the trading bloc, which is likely to see more business leak out of London to subsidiaries of global banks, which have moved to the EU.

Influential bosses, including Barclays's chief executive Jes Staley, have told the BBC that the real competition is from the US and Asia.

Ron Kalifa would say, wherever it's coming from, the UK needs to be vigilant and proactive in defending a sector which makes up 10% of the UK's gross domestic product and pays 12% of all of its taxes.

The report comes ahead of the chancellor's Budget speech next Wednesday, which is expected to highlight the government's determination to be at the forefront of innovation.

As one Treasury official said: "The timing of the Kalifa report is not an accident."--BBC

British Airways owner IAG calls for digital health passes

British Airways owner IAG has called for digital health passes "to reopen our skies safely" as it posted a record loss for 2020 due to Covid disruption.

IAG posted an operating loss of €7.4bn (£6.5bn) for last year after the pandemic grounded many of its flights.

UK-focused airlines got a boost this week from government plans for travel markets to possibly reopen from mid-May, prompting a flood of bookings.

But uncertainty remains about what routes will be available.

The airline group - which also owns Iberia, Aer Lingus and Vueling - called for "a clear roadmap for unwinding current restrictions when the time is right."

"We're calling for international common testing standards and the introduction of digital health passes to reopen our skies safely," said IAG's boss Luis Gallego.

IAG said that the ongoing uncertainty and duration of the pandemic meant that it could not provide a forecast for future profits.

Laura Hoy, equity analyst at Hargreaves Lansdown, said: "There's no getting around just how ugly IAG's final results are.

"With the coronavirus crisis clearing the skies for over a year, it's not unexpected to see IAG operating as just a shell of its former self.

"Management has responded in the only possible way - by securing new funding and slashing costs - but ultimately the group is at the mercy of the government's travel restrictions."

The government is in the process of talking to to G7 and other countries to try to build a consensus on how to allow more foreign travel.

Greek tourism minister Haris Theoharis told the BBC last week that early technical discussions were underway with UK officials about how a potential passport scheme might work.

The International Air Transport Association (IATA) also said this week that it expects its digital Covid Travel Pass will be ready soon.

The pass is an app that verifies a passenger has had the Covid-19 tests or vaccines required to enter a country. It also verifies they were administered by an approved authority.

Transport Secretary Grant Shapps said a review of how to return to international travel while managing risk from imported cases and virus variants would report on 12 April.

Capacity cut

IAG said that revenues last year sank by 69% from €25.5bn to €7.8bn amid the coronavirus-related restrictions on travel.

During 2020 it operated at a capacity of just 33.5% of the levels seen in 2019, and for January to March this year it expects capacity will drop to just 20% of pre-pandemic levels.

The airline group has been trying to boost its finances as it burns through cash in the pandemic.

Most recently, BA secured an extra £2.45bn through a UK government-backed loan and from deferring pension contributions.

Last October, IAG got shareholder backing for a €2.74bn rights issue, adding to savings made from 12,000 planned job cuts.

Despite the hefty losses, IAG has stuck to its plan to buy Spain's Air Europa, announcing in January the price tag had halved to €500m, with payment deferred for six years.--BBC

Coronavirus: EU urged to adopt 'vaccine passports'

Greece and Austria are urging other EU states to adopt coronavirus vaccination "passports" which could help revive Europe's stricken tourist industry.

The idea of such a document, likely to be a certificate, would be to permit those who have been vaccinated to travel freely within the EU.

The proposal was put forward during a virtual discussion between EU leaders.

But a vaccine passport faces opposition from some of the bloc's 27 member states.

France and Germany say such documents could be premature because data on the efficacy of vaccines in preventing a person from carrying or passing on the virus is incomplete.

There are also concerns that enabling a vaccinated minority to enjoy foreign travel while others, such as young people who are not seen as a priority for inoculation, continue to face restrictions would be discriminatory.

A further complication is the rapid spread of more contagious Covid variants - the English, South African and Brazilian forms - and the possibility of future mutations. So it is more likely that people will need booster jabs to remain protected.

Greece - as well as Israel - already has digital vaccination certificates, and others such as Denmark and Sweden have talked about developing them.

Greek Deputy Prime Minister Akis Skertsos told the BBC that a common digital certificate "is not discriminatory at all". He argued that non-vaccinated tourists could also visit Greece this summer, but the procedure for them would be slower - they would have to be tested and might have to self-isolate on arrival.

Greece and Cyprus have agreed to admit Covid-negative Israeli tourists this summer - those who can prove their status with the Israeli "green" digital certificate.

Greek Tourism Minister Harry Theocharis said a similar deal could be reached with the UK. However, the UK government has not yet approved any vaccination certificate, nor has it given the go-ahead for foreign holidays.

Greek tourism slumped disastrously last year because of the pandemic. Its revenues fell to €4bn (£3.5bn; $5bn), from €18bn in 2019, Reuters news agency reports. Tourism makes up about a fifth of the Greek economy, employing one in five workers.

Austrian Chancellor Sebastian Kurz tweeted that "we're advocating a digital Green Pass, like Israel's".

"That should allow you to prove, on your mobile phone, that you've been tested, inoculated or have recovered [from Covid]. Our goal: to avoid a lengthy lockdown and finally enable freedom to travel again in the EU, and freedom to enjoy events and cuisine."

German Chancellor Angela Merkel said it would take three months to set up a data system for use at the borders and in national healthcare systems, but that most countries agreed that "a digital vaccination certificate" could be necessary in the future.

As some EU countries now struggle with a third wave of the virus there are tensions over unilateral border restrictions. Germany is the latest to have received a complaint from the European Commission, since it imposed new police checks on the Czech and Austrian borders.

During the virtual meeting on Thursday, EU leaders also discussed how to address concerns over the slow vaccine rollout that has been widely criticised.

The Commission - the EU executive - has been under fire over its vaccine procurement strategy. It got into a row with AstraZeneca, because the Anglo-Swedish drug firm fell far short of the first-quarter delivery target.

Some member states have also implied that the AstraZeneca vaccine is somehow inferior to others - French President Emmanuel Macron said at one point that it might be "quasi-ineffective" in the over 65s, without offering any evidence.

This has reportedly led to issues of authorities in some countries, such as Italy, reluctant to use supplies of the drug.

The Commission still aims to get at least 70% of adults vaccinated in the bloc by mid-September. But so far, the total vaccinated is below 10%.

European Commission President Ursula von der Leyen said she felt assured that the target would be met. "These are 255 million people in the European Union, and if we look at the planned figures, this is a goal we are confident we'll reach," she said.

The EU is desperately seeking ways to increase vaccine supplies and improve its ability to track new variants, BBC Europe correspondent Kevin Connolly reports. But it is pursuing policies that might pay off in months or years, when voters want answers in days or weeks, he says.--BBC

GameStop surges again as Reddit crashes temporarily

Shares in GameStop surged on Wednesday in what could mark a return to frenzied trading that rocked markets last month.

Trading in the US games firm was halted twice after shares more than doubled suddenly on Wednesday afternoon.

GameStop stock climbed by 104% until trading was halted for a second time - moments before markets closed.

The rapid rise came as Reddit, the online home of activist investors that led the GameStop movement in January, went down temporarily.

The stock gained nearly 90% in after-hours trading.

It came one day after the firm announced its chief financial officer Jim Bell would resign next month to help "accelerate GameStop's transformation".

Some investors have talked publicly and posted on social media site Reddit about not selling their shares in GameStop during last month's volatile trading because of what they see as its long-term potential.

On Wednesday, Reddit was down for many users. The company did not say what caused the outage but said it had identified the issue, fixed it and that "systems are beginning to recover."

It is the latest twist in a battle that has pitted amateur investors against Wall Street giants.

Major hedge funds had bet billions of dollars that GameStop's shares would fall.

But they have faced major losses after amateurs, swapping tips on social media sites like Reddit, drove up the share price by more than 700% in one week.

The retail trading frenzy drew concern from regulators and has even led to a Congressional hearing in the US.

Keith Gill, who became a key player in the trading and is known as 'Roaring Kitty' on YouTube, has also been hit with a class action lawsuit. He allegedly duped retail investors into buying inflated stocks while hiding his sophisticated financial background.

Mr Gill has downplayed his impact and rebutted claims he violated any laws.

'Roaring Kitty' GameStop investor hit with lawsuit

GameStop - David and Goliath or a political fable?

"The idea that I used social media to promote GameStop stock to unwitting investors is preposterous," Mr Gill said in the prepared testimony.

"I was abundantly clear that my channel was for educational purposes only, and that my aggressive style of investing was unlikely to be suitable for most folks checking out the channel."

The GameStop saga was hailed as a victory of the little guys against big Wall Street hedge funds that were betting against video games retailer GameStop and other struggling businesses.

But it is unclear what role hedge funds had in the rally, as some are reported to have made millions from the GameStop share rally that was inspired by Reddit users.

The key part of the theory of why GameStop shares went up so high in January was a 'short squeeze'.

This is when hedge funds, who'd bet GameStop shares would fall, tried to buy them back when the share price began to rise.

That in turn pushed the price even higher. Some hedge funds lost hundreds of millions of pounds.

The prevailing view was that hedge funds wouldn't put themselves into that position again. That they would be all over Reddit and more careful about 'shorting'. Therefore, you wouldn't see a giant spike in the share price again.

But evidently, that view was wrong. That the share price, in just a few hours, could explode again tests some of the assumptions about what happened last month.

It's often very difficult to understand exactly what drives a share price, and who is driving it.

But it does once again appear that the hype on WallStreetBets, the influential subreddit, was part of the rise.

Reddit even went down at one point, though it's not clear yet whether that was because of an increase in activity on the site.

Policy makers will be looking on closely. At a hearing last week in Washington, many politicians were concerned that 'meme stocks' could spike again.

That can be beneficial to some investors when the stock is rising. But on the way down amateur investors can get burnt too.

If these kinds of spikes become more common, expect more pressure on legislators to step in.--BBC

Wall Street Week Ahead: Investors weigh new stock leadership as broader market wobbles

NEW YORK (Reuters) - A shakeup in stocks accelerated by the past week’s surge in Treasury yields has investors weighing how far a recent leadership rotation in the U.S. equity market can run, and its implications for the broader S&P 500 index.

Moves this week further spurred a shift that has seen months-long outperformance for energy, financial and other shares expected to benefit from an economic recovery, while a climb in Treasury yields weighed on the technology stocks that have led markets higher for years.

The two-track market left the benchmark S&P 500 down for the week, and sparked questions about whether it could sustain gains going forward if the tech and growth stocks that account for the biggest weights in the index struggle.

So far this year, the S&P 500, which gives more influence to stocks with larger market values, is up 1.5%, while a version of the index that weights stocks equally is up 5%.

“That just tells us the gains are less narrow, more companies are participating, and I think that’s healthy,” said James Ragan, director of wealth management research at D.A. Davidson.

The focus on market leadership comes as investors are weighing whether the S&P 500 is due for a significant pullback after a 70% run since March, with the rise in long-dormant yields the latest sign of trouble for equities as it means bonds are more serious investment competition. The yield on the 10-year U.S. Treasury note this week jumped to a one-year peak of 1.6% before pulling back.

Economic improvement will be in focus in the coming weeks, including the monthly U.S. jobs report due next Friday, as will the country’s ability to ensure widespread coronavirus vaccinations, especially as new variants emerge.

Tech and momentum stocks helped drive returns in 2020 “when everyone was locked down and all they had was their computer,” said Jack Ablin, chief investment officer at Cresset Capital Management. “Now it seems with the vaccines, the stimulus and the prospect of reopening that we are looking out toward a recovery phase.”

The shift in the market this week is building on one that was fueled in early November, when Pfizer’s breakthrough COVID-19 vaccine news generated broad bets on an economic rebound in 2021.

Among the moves since that point: the S&P 500 financial and energy sectors are up 29% and 65%, respectively, against a nearly 9% rise for the benchmark index and 7% rise for the tech sector. The Russell 1000 value index has gained 16.5% against a 4.3% climb for its growth counterpart, while the smallcap Russell 2000 is up 34%.

“You definitely are seeing the reopening trade that has pretty much come alive here,” said Gary Bradshaw, portfolio manager of Hodges Capital Management.

Despite the gains, there remains “plenty of room for the reflation trade to run from a valuation perspective,” Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, said in a report this week. RBC is “overweight” the financials, materials and energy sectors.

Rising rates tend to be favorable for more cyclical sectors, David Lefkowitz, head of Americas equities at UBS Global Wealth Management, said in a note, with financials, energy, industrials and materials showing the strongest positive correlations among sectors with 10-year Treasury yields.

Still, how long the market’s reopening trade lasts remains to be seen. Investors may be reluctant to stray from tech and growth stocks, especially with many of the companies expected to put up strong profits for years.

Any setbacks with the economy or with efforts to quell the coronavirus could revive the stay-at-home stocks that thrived for most of 2020.

And with a GameStop-fueled retail-trading frenzy taking hold this year, banks and other stocks in the reopening trade may fail to draw the same attention from amateur investors as stocks such as Tesla, said Rick Meckler, partner at Cherry Lane Investments.

“There isn’t the pizzazz to those stocks,” Meckler said. “There rarely is a potential for stocks to make the kind of moves that big tech growth stocks have made.”

Airline CEOs urge White House support for greener aviation fuel

WASHINGTON (Reuters) - The CEOs of American Airlines, United Airlines and Delta Air Lines and other airline officials met virtually with White House officials Friday to discuss tackling aviation pollution and urge U.S. support for greener aviation fuel.

United Chief Executive Scott Kirby made clear the carrier was fully committed to confronting the climate crisis and sought White House support for “incentives for sustainable aviation fuel and carbon capture in the forthcoming economic stimulus proposal,” the airline said in a statement.

White House National Climate Advisor Gina McCarthy, economic adviser Brian Deese and Transportation Secretary Pete Buttigieg took part in the meeting, including discussion of using biofuels to power air travel and reduce carbon emissions. Reuters first reported the planned meeting.

U.S airlines and renewables companies have been lobbying the Biden administration to back a big increase in subsidies for lower-carbon aviation fuel, arguing new incentives are needed to help fight climate change and will also make their recovery from the pandemic much greener.

The White House said in a statement the officials were “optimistic to hear airline leaders share information about the industry’s ongoing and future efforts to address climate change, and they offered the administration’s support to strengthen and advance the airlines’ climate goals.”

Currently, Airlines for America (A4A), the industry trade group, uses only about 1.5 million gallons of green plane fuel in the United States a year, out of a total commercial jet fuel market that exceeds 620 million barrels.

The price of sustainable aviation fuel can be three or four times higher than traditional jet fuel, making it uneconomical without government support, A4A told Reuters earlier.

A4A CEO Nick Calio said airlines had “a positive, constructive conversation about our shared commitment to fighting climate change. Airlines are ready, willing and able partners.”

Robinhood plans confidential IPO filing as soon as March: Bloomberg News

(Reuters) - Online brokerage Robinhood, at the centre of this year’s retail trading frenzy, is planning to file confidentially for an initial public offering as soon as March, Bloomberg News reported late on Friday, citing sources.

The California-based brokerage has held talks in the past week with underwriters about moving forward with a filing within weeks, Bloomberg said.

Robinhood did not immediately respond to a request for comment.

Reuters reported last year that Robinhood has picked Goldman Sachs Group Inc to lead preparations for an initial public offering which could value it at more than $20 billion.

Robinhood was at the heart of a mania that gripped retail investors in late January following calls on Reddit thread WallStreetBets to trade certain stocks that were being heavily shorted by hedge funds.

The online brokerage tapped around $3.4 billion in funding after its finances were strained due to the massive trading in shares of companies such as GameStop Corp.

Biden on track to apply Trump-era rule targeting Chinese tech supply chain concerns

WASHINGTON (Reuters) - The Biden administration plans to allow a Trump-era rule targeting Chinese technology firms deemed to pose a threat to the United States to go into effect despite objections from U.S. businesses, the U.S. Commerce Department said on Friday.

The department issued an interim final rule in the final days of the Trump administration aimed at addressing information and communications technology supply chain concerns and said it would become effective after a 60-day period of public comment.

On Friday, a Commerce spokeswoman said in a statement the department would continue to accept public comment on the rule until March 22, when it would go into effect.

“Trustworthy information and communications technology and services are essential to our national and economic security and remains a top priority for the Biden Harris administration,” the statement said.

The U.S. Chamber of Commerce and groups representing major industries raised concerns in a letter to the Commerce Department in January that the interim rule gave it “nearly unlimited authority to intervene in virtually any commercial transaction between U.S. companies and their foreign counterparts that involves technology, with little to no due process, accountability, transparency, or coordination with other government programs.”

Business Roundtable, a group representing major U.S. chief executives, said earlier the proposal is “unworkable for U.S. businesses in its current form.”

The Wall Street Journal first reported the Biden administration’s plans.

As the Commerce Department is still accepting public comments, it may still revise the rule based on objections from businesses and others.

Texas power crisis could cripple small marketers, unravel market deregulation

HOUSTON (Reuters) - Retail power marketers in Texas are appealing multi-million dollar bills from last week’s blackout that they say could cripple them and unravel Texas’ nearly two-decade-old experiment as the most deregulated U.S. electricity market.

Wholesale prices, which last year averaged $26 a megawatt hour, soared to $9,000 per MWh for days as grid operators tried to quench a severe shortage that left up to 4.3 million residents shivering in the dark last week. The state’s total bill for electricity over seven days rose by $45 billion from the prior week, lawmakers said on Thursday.

“The state will likely experience the largest number of failures of retailers ever seen,” said Patrick Woodson, chief executive of Green Energy Exchange. “Competition will all but cease to exist.” His firm will survive, he said, despite service charges hitting nearly $19 million, up from $37,000.

Some consumers also face enormous bills. During the freeze, some 40,000 consumers who had monthly plans pegged to wholesale prices got bills of up to $9,500 as generators froze and prices soared. State officials have said they will help consumers. The state has about 6.4 million residential electric accounts.

WITHERING COMPETITION

Texas in 2002 deregulated its power system, splitting generation from transmission lines and from retail sales. It spawned 100s of marketers offering fixed, variable and indexed rate plans and fuel choices. Fallout from the outage will accelerate consolidation, experts said.

The industry split initially led to modest fees to marketers and generators for maintaining the state’s grid. But those fees were tied to wholesale price of electricity and jumped last week along with the cost of power. That saddled retail marketers with tens of millions of dollars in bills for services that ordinarily cost a few thousands.

The enormous jump in fees resulted from the grid operator failing to lower wholesale priced when supplies became adequate, said Brandon Young, chief executive of Young Energy LLC, which has about 32,000 customers providers said.

“Our ancillary services costs alone for that one week are greater than our entire energy costs for all of 2020,” said Young.

The head of grid operator Electric Reliability Council of Texas (ERCOT) has said it left the wholesale price at $9,000 per MWh to financially motivate power generators to remain on the grid. ERCOT CEO Bill Magness said late Thursday he and other officials hope to address the fees.

ERCOT has not relaxed its order requiring companies to pay fees within 72 hours to avoid have their customers reassigned to big utilities.

APPEALING FOR REPRIEVE

Natural gas utilities and power generators buying the fuel for their gas-fired power plants will likely have to borrow money to cover the cost of the gas when prices skyrocketed.

Atmos Energy Corp and One Gas Inc spent over $2 billion each to buy gas as prices hit a record high of nearly $24 per million British thermal units (mmBtu), from $2.30 per mmBtu. The borrowing costs would wind up in consumer bills, analysts said.

Nearly a quarter of the 100 Texas power companies receiving the high power and services bills could end up transferring all their customers to rivals.

Consolidation could leave more than 80% of deregulated Texas retail customers with giants Vistra Corp and NRG Energy, consumer advocates and industry executives said. Both have been buying up rivals in recent years.

Nine companies this week appealed to the state regulator to cancel or delay the fees, which are due 72 hours after invoices are received. Pulse Power, which has 100,000 customers, said it lost $2,000 per customer during the week, according to a filing with the state.

Freepoint Commodities, another power marketer, sought a waiver for charges of more than $20,000 per MWh over five days, saying the requirement for immediate payment “will be devastating.” It plans to dispute the charges, said associate general counsel Simona Patru, who declined further comment in an email.

CUSTOMER SWAP

For consumers, the loss of these mostly small marketers and potential funneling of their customers to a handful of big utilities will reduce plans available and raise prices, said consumer advocates.

“Prices can go up too easily with a lack of competition,” said Tim Morstad, associate state director for consumer advocacy group AARP Texas. “That’s where this train is heading.”

Texas has called on the state’s largest utilities, including Vistra Corp’s TXU, to accept customers from other providers. TXU told the state it would accept more than 1.3 million new customers.

SoftBank reaches settlement with former WeWork CEO Neumann

(Reuters) - SoftBank Group Corp said on Friday it has reached a settlement with WeWork’s special committee and the company’s co-founder and former chief executive, Adam Neumann, putting to rest a legal battle dating back to 2019.

SoftBank, the new owner of the office-sharing firm, did not disclose terms of the settlement. Media reports earlier this week indicated the deal includes a nearly $500 million cut in Neumann’s payout from SoftBank.

The legal tussle between SoftBank and Neumann started in 2019, when SoftBank agreed to buy around $3 billion in WeWork stock belonging to Neumann as well as current and former WeWork employees. SoftBank later contested its obligation to purchase the shares.

Under the new settlement, SoftBank will purchase around half the shares it had originally agreed to buy, a source familiar with the talks had told Reuters on Monday.

The settlement is also expected to clear the decks for WeWork as it reportedly pursues a public listing by merging with a special purpose acquisition company (SPAC).

“This agreement is the result of all parties coming to the table for the sake of doing what is best for the future of WeWork,” said Marcelo Claure, executive chairman of WeWork and CEO of SoftBank Group International.

SoftBank, which poured more than $13.5 billion into WeWork, was pulled into the legal dispute with directors at WeWork after backing out of the $3 billion tender offer agreed when it bailed out the office-sharing firm following a flopped IPO attempt.

Citigroup revises earnings lower after losing Revlon case

(Reuters) - Citigroup Inc said on Friday it recorded an additional $390 million in operating expenses in the 2020 fourth quarter after a U.S. federal judge ruled it was not entitled to recoup money it mistakenly wired to lenders of Revlon Inc last year.

As a result, Citigroup revised its fourth-quarter earnings to $1.92 per share down from $2.08, according to a filing.

In August, an “operational error” caused Citigroup to send $893 million of its own funds to the cosmetic company’s lenders, appearing to pay off a loan not due until 2023, when it intended to send only a $7.8 million interest payment.

To date, $389.8 million had been repaid to he bank at its request, but some lenders have held on to the funds leading the bank to wage a legal battle against a group of hedge funds to recover the remainder.

This month, U.S. District Judge Jesse Furman in Manhattan said the transfers were complete transactions not subject to revocation and declined to force the defendants to return the funds. Citigroup is planning to fight the decision.

“I do believe that we have good grounds for an appeal, and we’re going to pursue that,” Chief Financial Officer Mark Mason said an industry conference on Thursday.

The unprecedented blunder was the latest misstep involving internal controls at Citigroup, which federal regulators fined $400 million in October over longstanding deficiencies.

Shortfalls in Citigroup’s internal controls were a factor in Chief Executive Mike Corbat’s planned early retirement this month.

Jane Fraser will take over the reins of the company on Monday.

Kenya: MPs Refuse to Ratify Trade Pact Between Kenya and UK

Members of Parliament have refused to ratify Kenya's trade pact with the UK, accusing unknown officials of sneaking in documents that had not been tabled in Parliament.

The lawmakers said until they are fully aware of the details of the Economic Partnership Agreement (EPA) between the two countries, they will not ratify the agreement.

The lawmakers yesterday deferred debate on the report of the Trade, Industry and Cooperatives Committee after some sections containing details of the pact were sneaked in without the authorisation of the Speaker.

The earlier report tabled before the House last week did not have annexures containing the details of the type of goods that the UK will ship into the country duty free for 25 years.

Some of the annexures missing from the report include custom details of the goods coming from the UK, a joint statement of the parties that signed the agreement and the concept definition of terms of the products originating from the UK.

Serious offence

Last week on Thursday, the committee tabled its report on its consideration of the EPA, setting the stage for debate by the House, which was scheduled for yesterday.

The committee's chairman, Mr Aden Haji, yesterday came up with annexures that were not contained in the earlier report, raising concerns among the lawmakers that something is not adding up.

National Assembly Speaker Justin Muturi said it is a serious offence and against the Standing Orders for additional documents to be introduced in the floor of the House without his ratification.

"If the documents as confirmed by the deputy clerk were not received by this House, then it is a serious issue. Do not sneak in documents over lunch hour because that is not how business is conducted here," Mr Muturi said

"This is Parliament of the Republic of Kenya and must have a say on the ratification of the agreement. Those telling us they are in a hurry should have started yesterday," Mr Muturi added.

Agreement

Luanda MP Chris Omulele said without the details of the goods to be shipped into the country, then Parliament cannot ratify the agreement.

"The devil is in the details. We are entering into a treaty where we will cede some custom duty and until we see the details of the agreement, we will withdraw from this agreement," Mr Omulele said.

Finance committee chairperson Gladys Wanga said as a committee dealing with tax issues, they were not involved in the negotiation process. "As far as we are concerned, we were kept in the dark," Ms Wanga said.

Garissa Township MP Aden Duale said the House must now move with speed so as to amend the Ratification Act so that respective committees are involved in the negotiation process.

The deal between Kenya and UK provides full duty-free and quota-free market conditions for goods originating from East African Community partner state(s) into the market of the UK on a secure, long-term and predictable basis.

Kenya and UK Parliaments are required to ratify the agreement in order to take effect.

Last year, Kenya exported Sh49.5 billion worth of goods to UK up from Sh39.7 billion in 2019, while imports from UK dropped to Sh29.3 billion from Sh35.3 billion over the same period.-Nation.

Kenya Space Agency to Launch Two Mini-Rockets

The Kenya Space Agency (KSA) is set to launch two mini-rockets from the Malindi Space Centre in collaboration with the University of Rome in August.

The rockets will be launched using high altitude balloons, an improvement of the earlier huge rockets that were being launched in the 1980s and 1990s.

This was revealed yesterday during the opening of a space sector high-level engagement forum dubbed 'The space sector we want in Kenya' attended by Defence Cabinet Secretary Monicah Juma, KSA chairman Major-General (Rtd) James Arwasa, Kenya Civil Aviation Authority Director-General Gilbert Kibe and other stakeholders.

Use of high-altitude balloons as launch pads for mini-rockets and satellites reduces the cost of sending rockets into space, Mr Arwasa said.

He noted that, "satellites and rockets have become smaller because of advances in technology.

"We've students who are already working on building and launching the two at the Malindi Space Centre. We're working with the University of Rome."

The launch was pushed to August after seven professors involved in the project from Rome tested positive for Covid-19.

"We were expecting nine professors from the University of Rome to join us to witness these students launching the mini-rockets, but unfortunately seven tested positive for Covid-19," Mr Arwasa said.

The benefits of having satellites in space include selling data collected to other countries. It also means availability of quality data for use in making efficient decisions in the fight against climate change, promotion of national security, enhancement of agriculture, learning, identifying areas with minerals through earth observation.

KSA, Mr Arwasa said, will ensure information is centralised and accessible to all to avoid duplication.-Nation.

Nigeria: Dangote Promises to Protect Shoreline, Fishing Activities in Lekki Communities

Dangote Petroleum Refinery and Petrochemicalsyesterday reiterated its commitment to protecting the shorelines and fishing activities in Lekki coastal environment, thereby allaying the fears of fishermen and other residents in the area.

The company said its Dangote Jetty has been constructed with Sandbar Breakwater technology, which is a unique concept that follows the building-with-nature philosophy.

According to Dangote, the Sandbar Breakwater is capable of reducing coastal erosion and protecting the shorelines by interrupting wave energy, and allowing sand to accumulate along the coast.

General Manager (Survey), Dangote Oil Refining Company Limited, Mr. Rajnish Kumar Gupta, who spoke on behalf of the Head, Maritime and Ports Infrastructure, Dangote Oil Refining Company Limited, Capt. Rajen Sachar, described the concept as based on the knowledge and principles of the local natural system and its dynamics, which makes optional use of the ecosystems available.

He said the concept does not interfere with wild-life and fishing activities in the coastal areas. "Sandbar Breakwaters don't interfere with wildlife habitats. They may change how wave transmission energy occurs, but this doesn't change the fact that animals will still have a place that they can call home," he added.

Sachar stated: "A conventional breakwater that consists of rock would lead to fast coastline advance at the west side, ultimately burying the expensive rock and thereby losing its function. The Sandbar Breakwater is designed as such that it mostly consists of sand. The Sandbar is morphologically dynamic and nature shapes it to an equilibrium stable profile. It minimises the use of hard materials (rock) and thereby makes optimal use of locally available materials. The Sandbar profile ensures a continuous safe and calm harbour basin.

A small scale sand engine at the down drift side of the port (East) temporarily mitigates the coastal retreat. Continuous down drift coastline retreat is an inevitable part of a construction of a port. This can be mitigated by the deployment of a sand engine from time to time."

He explained that Sandbar breakwater makes optimal use of the ecosystems available.

"Breakwater is an artificial offshore structure protecting a harbour, anchorage, or marina basin from water waves. Breakwaters intercept longshore currents and tend to prevent beach erosion and by changing wave direction, which reduces longshore drift. Breakwaters are barriers built offshore to protect part of the shoreline. They act as a barrier to waves, preventing erosion that can impact on communities," he added.-This Day.

Namibia: Govt Shuts Down Investors' Website

THE Ministry of Trade and Industrialisation has closed down the NamBizOne portal, which was launched to improve Namibia's investment attractiveness and ranking on the World Bank's ease of doing business index.

The website was launched in 2017 and was operational for a year only.

It was developed by the government of Singapore for free in a bid to improve Namibia's standing as an investment destination.

The NamBizOne website was to act as one of the first steps towards creating an e-services platform through which investors could register their businesses and access relevant information on government licensing and regulatory requirements, and formed part of the project to roll out an integrated client service system connected to various government departments.

Further, the website was to provide guidance to investors on submitting investment proposal, incorporating a business, registering for tax and social security and applying for all relevant licences.

Trade minister Lucia Iipumbu this week confirmed that the website was closed down.

Iipumbu said this was done after the ministry revamped its website and created another "one-stop shop" in December.

The new investors' website can be accessed on https://services.icsf.gov.na.

"With the launch of the Namibia one-stop shop, it was agreed that the portal should close in November 2020, because it involved a duplication of the information," she said.

Iipumbu said before its eventual shutdown, the website was used frequently by citizens and investors "and provided the much-needed stop-gap measure as we were revamping our website and launching the Integrated Client-Service Facility".

The minister said with the use of this facility to ease doing business in Namibia, and the establishment of the Namibia Investment Promotion and Development board, the ministry and its associated agencies "are ensuring that both domestic and foreign investors are catered for".

"The ministry is also finalising the Namibia Investment Promotion Act as well as the National Policy on Special Economic Zones. These activities and interventions are primed to provide clear investment policies, a legislative framework to boost Namibia's competitiveness, and ease of doing business," Iipumbu said.

Institute for Public Policy Research (IPPR) director Graham Hopwood, however, criticised the new site, saying it "does not say what services it offers and is visually unappealing".

"It simply has registration links for the public and agents, but does not explain why a person should register and what services or assistance they might receive. There is no information about Namibia in general or investment opportunities," he said.

"We urgently need a website which would provide key details about the Namibian economy, investment opportunities as well as providing access to services. Namibia is crying out for investment as made clear in recent statements from the minister of finance and the Bank of Namibia governor, as government spending can no longer drive economic growth," he said.-Namibian.

Invest Wisely!

Bulls n Bears 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Blog:            <https://bullszimbabwe.com/category/blogs/bullish-thoughts/> www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:      <http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimbabwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA> www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

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

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210227/918e7373/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210227/918e7373/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 31039 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210227/918e7373/attachment-0002.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.png
Type: image/png
Size: 191693 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210227/918e7373/attachment-0004.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210227/918e7373/attachment-0005.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 22328 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210227/918e7373/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65554 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210227/918e7373/attachment-0001.obj>