Major International Business Headlines Brief::: 04 January 2021

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Major International Business Headlines Brief::: 04 January 2021

 


 

 

	
 


 

 


ü  MGM Resorts 'looking' to buy' Ladbrokes owner Entain

ü  Fiat Chrysler and PSA merger faces final hurdle

ü  Bitcoin tops $34,000 as record rally continues

ü  Wall Street to kick out Chinese telecom giants

ü  Asia shares reach record, Nikkei restrained by lockdown risk

ü  China telco shares lose 5% in first trading day since NYSE delisting
announcement

ü  Hedge funds bet on recovery in 2021

ü  Bitcoin trades near Sunday record of $34,800 following 800% surge

ü  Tesla 2020 deliveries beat estimates, but fall just short of Musk's
target

ü  Carl Icahn sells over half his Herbalife stake for $600 million

ü  Quibi in talks to sell content catalog to Roku - WSJ

ü  Nigeria: Fishermen Threaten Showdown Over Shell's Failure to Pay $3.6bn
Bonga Spill Fine

ü  Rwanda: Govt Mulls Inclusion of Covid-19 Tests Into Health Insurance
Schemes

ü  Kenya: Global Health Crisis Paved the Road for 4iR

ü  Nigeria: Gombe to Resume Paying N30,000 Minimum Wage

ü  Nigeria: AfCFTA Will Boost Nigeria's Export - Report

ü  Tanzania: RC Hints On Special Desk to Boost Investment in Region

 

 


 

 


MGM Resorts 'looking' to buy' Ladbrokes owner Entain

US casino giant MGM Resorts is looking to buy British gaming company Entain,
according to media reports.

 

The move is the latest attempt by a casino operator to move into the online
gambling business.

 

UK-based Entain is the owner of bookmaker Ladbrokes, as well as a number of
online sports betting and gambling sites.

 

MGM and Entain (formerly known as GVC) did not immediately respond to a BBC
request for a comment on the reports.

 

Entain recently rebuffed a $10bn (£7.3bn) all-cash offer from MGM, according
to the Wall Street Journal, which first reported the story.

 

Along with Ladrokes, FTSE 100-listed Entain also owns sports-betting site
Bwin and online gaming group Partypoker.

 

It describes itself as "one of the world's largest sports betting and gaming
groups operating in the online and retail sector."

 

Last month, Entain renamed itself from GVC Holdings. Other brands the $9bn
group owns include Coral, Eurobet, Gala and Foxy Bingo.

 

The new bid comes with financial backing from MGM's largest shareholder,
InterActiveCorp (IAC), which took a 12% stake in MGM Resorts last August.

 

At the time, IAC's chief executive Barry Diller said IAC planned to work
with MGM to expand its online gambling portfolio.

 

The exact details and value of the new bid could were not known, according
to the Wall Street Journal.

 

Covid headwinds

The possible acquisition comes as the casino industry faces headwinds from
the Covid-19 pandemic.

 

Bricks-and-mortar casino operators have struggled under travel restrictions.

 

The economy of Asian casino hub Macau shrank 49% in the first quarter of
this year, while unemployment in Las Vegas reached 30% earlier in the year
and remains well above the US average.

 

 

MGM Resorts, which is the operator of the Bellagio casino in Las Vegas, laid
off 18,000 furloughed employees in the US in August.

 

Many online gambling companies, by contrast, saw a boost during Covid-19
restrictions, prompting many casino owners to pivot their businesses towards
online.

 

Last September, MGM rival Caesars Entertainment struck a $3.7bn deal to buy
UK-based William Hill.--BBC

 

 

 

Fiat Chrysler and PSA merger faces final hurdle

A merger between Fiat Chrysler and France's PSA Group faces its final hurdle
as the two companies seek shareholder approval on Monday.

 

The deal, if approved, will create the world's fourth biggest carmaker and
comes two years after talks began.

 

The combined company will bring together well-known brands such as Peugeot,
Citroen and Vauxhall from PSA with Fiat, Jeep, Chrysler and Ferrari.

 

The new company following the $52bn (£38bn) deal will be called Stellantis.

 

Stellantis will have 14 car brands under one roof including niche players
Maserati and Alfa Romeo.

 

Executives expect the merger to be finalised by the end of March.

 

They say it will provide significant cost savings.

 

This has raised concerns about the closure of some factories across the
brands, including those of Vauxhall which employs 3,000 people in the UK.

 

However, in November PSA pledged not to close factories after the merger
even though the combined group would have spare production capacity of
almost six million cars.

 

Is bigger better?

While creating the fourth biggest carmaker globally, critics argue that
bigger isn't always better.

 

Tesla is often used as an example of this as it has relatively small
production compared to its bigger rivals but a much higher market value.

 

And US-based General Motors (GM), the world's fifth biggest car brand in
terms of production, has scaled back from many markets to focus on North
America.

 

While it will be ahead of GM and Ford in terms of global sales it will still
trail VW, the Renault-Nissan-Mitsubishi alliance and Toyota.

 

Asian focus

Bosses hope the combined firm will have more financial muscle to compete
with its bigger rivals.

 

One area Stellantis is expected to focus on is China, the world's biggest
car market where 21 million vehicles are sold each year.

 

"On their own, each group might not be able to afford a reboot in China,"
said Philippe Houchois, an analyst at Jefferies investment bank.

 

But managing such a large portfolio of brands will be a major challenge
experts say as they could eat into each other's sales.-BBC

 

 

 

 

Bitcoin tops $34,000 as record rally continues

Bitcoin's value surged above $34,000 (£24,850) for the first time on Sunday
as the leading cryptocurrency continued to soar.

 

It put the gain this year at almost $5,000, although by 17:00 GMT the price
had drifted lower to about $33,000, according to the Coindesk website.

 

The rise was put down to interest from big investors seeking quick profits.

 

It comes after Bitcoin soared 300% last year, with the price of many other
digital currencies also rising sharply.

 

Ethereum, the second biggest cryptocurrency, gained 465% in 2020

 

Some analysts think Bitcoin's value could rise even further as the US dollar
drops further.

 

While the value of the US currency rose in March at the start of the
coronavirus pandemic as investors sought safety amid the uncertainty, it has
since dropped due to major stimulus from the US Federal Reserve. The
currency ended last year with its biggest annual loss since 2017.

 

Bitcoin is traded in much the same way as real currencies like the US dollar
and pound sterling.

 

Recently it has won growing support as a form of payment online, with PayPal
among the most recent adopters of digital currencies.

 

But the cryptocurrency has also proved to be a volatile investment.

 

The soaring price has raised concerns that Bitcoin is due for a dramatic
correction, as happened three years ago when the value collapsed after a
bull run.

 

During the rally in 2017 Bitcoin came close to breaking through the $20,000
level, only to hit extreme lows and fall below $3,300.

 

It passed $19,000 in November last year before dropping sharply again.

 

‘Robin Hood’ hackers giving stolen money to charity

'One day everyone will use China's digital currency'

In October, Bank of England Governor Andrew Bailey cautioned over Bitcoin's
use as a payment method.

 

"I have to be honest, it is hard to see that Bitcoin has what we tend to
call intrinsic value," he said. "It may have extrinsic value in the sense
that people want it."

 

Mr Bailey added that he was "very nervous" about people using Bitcoin for
payments pointing out that investors should realise its price is extremely
volatile.--BBC

 

 

 

Wall Street to kick out Chinese telecom giants

The New York Stock Exchange (NYSE) said it will delist three Chinese
telecommunications firms based on claimed links with its military

 

China Mobile, China Telecom and China Unicom Hong Kong have all been
targeted by the Trump administration.

 

Shares in the telecoms giants will be suspended on the NYSE next week while
proceedings to delist them have begun.

 

The companies earn all of their revenue in China and have no significant
presence in the US.

 

The delisting is seen more as a symbolic blow amid heightened geo-political
tensions between the US and China.

 

The three firms' shares are thinly traded in the US compared to their
primary listings in Hong Kong. The state-owned companies dominate the
telecoms industry in China.

 

President Donald Trump signed an order in November barring American
investments in Chinese firms owned or controlled by the military.

 

The order prohibited US investors from buying and selling shares in a list
of Chinese companies designated by the Pentagon as having military ties.

 

Mr Trump has targeted a number of Chinese companies including TikTok, Huawei
and Tencent on the grounds of national security.

 

China responded with its own blacklist of US companies as tensions between
the economic giants escalate.

 

The shares of China Mobile, China Telecom and China Unicom Hong Kong will be
suspended from trading between 7 and 11 January, the NYSE confirmed.

 

US stock exchanges including the NYSE and Nasdaq courted Chinese companies
during the past decade to list their shares on their stock markets.

 

There are currently more than 200 Chinese companies listed on US stock
markets with a total market capitalization of $2.2tn (£1.6tn).

 

But as relations turned sour with the US, many Chinese firms have sought
dual listings in China and Hong Kong.

 

Companies including Chinese e-commerce giants Alibaba and JD.Com also have
listings in New York but have conducted secondary listings in Hong Kong in
the past two years as the trade war between the US and China intensified.

 

Last month, the US House of Representatives passed a law to kick Chinese
companies off US stock exchanges if they do not comply with its auditing
rules.—BBC

 

 

Asia shares reach record, Nikkei restrained by lockdown risk

SYDNEY (Reuters) - Asian shares resumed their ascent on Monday as investors
pinned their hope on vaccines to eventually deliver a global economic
upturn, even as a possible tightening in virus rules for Tokyo pulled
Japanese stocks off 30-year highs.

 

After a slow start, MSCI’s broadest index of Asia-Pacific shares outside
Japan swung 1.2% higher, hitting another all-time peak.

 

South Korea climbed 2% to a record, led by the chip and auto sectors, while
Chinese blue chips added 0.3%.

 

E-Mini futures for the S&P 500 were steady after also touching a record
high. EUROSTOXX 50 futures were flat, while FTSE futures rose 0.4%.

 

Investors are still counting on central banks to keep money cheap while
coronavirus vaccines help revive the global economy over time, though much
of that optimism is already priced in and the virus still spreading.

 

Japan’s Nikkei shed early gains, falling 0.4% after Prime Minister Yoshihide
Suga confirmed the government was considering a state of emergency for Tokyo
and three surrounding prefectures.

 

Investors are cautiously watching runoff elections in Georgia for two U.S.
Senate seats on Tuesday that will determine which party controls the Senate.

 

If the Republicans win one or both, they will retain a slim majority in the
chamber and can block President-elect Joe Biden’s legislative goals and
judicial nominees.

 

“If Democrats win both races, Vice President-elect Kamala Harris would be
the tiebreaking vote, giving the party unified control of the White House
and Congress,” noted analysts at CBA. “This would raise the likelihood a
material U.S. infrastructure spending package gets fast-tracked through
Congress.”

 

Minutes of the Federal Reserve’s December meeting due on Wednesday should
offer more detail on discussions about making their forward policy guidance
more explicit and the chance of a further increase in asset buying this
year.

 

PAYROLLS A RISK

The data calendar includes a raft of manufacturing surveys across the globe,
which will show how industry is coping with the spread of the coronavirus,
and the closely watched ISM surveys of U.S. factories and services.

 

Chinese factory activity continued to accelerate in December, though the PMI
missed forecasts at 53.0.

 

Japanese manufacturing stabilised for the first time in two years in
December, while Taiwan picked up.

 

Friday sees the U.S. December payroll report where median forecasts are for
only a modest increase of 100,000.

 

Analysts as Barclays are tipping a fall of 50,000 in jobs, which would be a
shock to market hopes of a speedy recovery.

 

“A number of incoming indicators on activity point to slower momentum as the
economy closes out the year, including data on labour markets where initial
claims rose during the December survey period,” said economist Michael Gapen
in a note.

 

Such a drop would add pressure on the Fed to ease further, another burden
for the dollar which is already buckling under the weight of the massive
U.S. budget and trade deficits.

 

The dollar index was last at 89.704, not far from its recent 2-1/2-year low
of 89.515 having shed almost 7% in 2020.

 

The euro pushed back up to $1.2252, having run into profit-taking late last
week when it reached the highest since early 2018 at $1.2309. It gained
almost 9% over 2020.

 

The dollar slipped to 103.02 yen, and looked in danger of testing key
support at 102.55. Sterling firmed to $1.3690, levels last seen in mid-2018.

 

In the cryptocurrency space, Bitcoin steadied at $33,102, after touching an
historic top at $34,800.

 

The decline in the dollar has been a support for gold, leaving the metal
1.3% firmer at $1,922 an ounce.

 

Oil prices extended their rise after a couple of months of solid gains, with
Brent testing resistance around $52.50 a barrel. [O/R]

 

Brent crude futures rose 62 cents to $52.49, while U.S. crude added 59 cents
to $49.11 a barrel.

 

 

 

China telco shares lose 5% in first trading day since NYSE delisting
announcement

SHANGHAI (Reuters) -China’s three biggest telcos saw their shares drop as
much as 5% in Hong Kong on Monday, the first trading session since the New
York Stock Exchange (NYSE) said it would delist the firms under a plan China
branded “political” and of “limited” impact.

 

The NYSE on Thursday said it would delist China Mobile Ltd, China Telecom
Corp Ltd and China Unicom Hong Kong Ltd following the U.S. government’s move
in November to block investment in 31 firms that it said are owned or
controlled by China’s military.

 

The China Securities Regulatory Commission, in a question-and-answer posted
on its website on Sunday, said the plan was “politically motivated”.

 

The move “completely disregards the actual situation of the relevant
companies and the legitimate rights and interests of global investors and
severely undermines normal market rules,” it said.

 

The American Deposit Receipts listed by the three telcos have a combined
market value of under 20 billion yuan ($3.07 billion), or 2.2% of the firms’
equity, the regulator said.

 

“Even if delisted, the direct impact on the companies’ development and
market operation is quite limited,” it said.

 

China Mobile’s shares fell as much as 4.5% in Hong Kong on Monday to
HK$42.20, their lowest price since July 2007. China Telecom fell as much as
5.6% and China Unicom lost 3.4% versus a 0.8% rise in the benchmark Hang
Seng Index.

 

All three said they had not received any delisting notification from the
NYSE.

 

In a research note, Citic Securities analysts said the delisting decision
matched expectations.

 

“The three firms on average only have 1.5% of their shares listed in the
U.S. and the rest in Hong Kong, have ample liquidity, and haven’t done any
fundraising in the U.S. for 20 years. Having shares listed in the U.S. will
only pose more risk for them.”

 

Washington has stepped up its hard-line stance against China in recent
weeks. In December, it added dozens of Chinese firms to a trade blacklist,
accusing Beijing of using them to harness civilian technology for military
purposes.

 

On Saturday, China’s commerce ministry said it would take “necessary
measures” to safeguard Chinese firms’ interests.

 

“In recent years it’s been quite normal to see Chinese firms delist in the
U.S. or have secondary listings in Hong Kong,” Citic analysts wrote on
Monday. “With the delisting, the three telcos will get a chance to have
their shares re-evaluated and reduce financial disclosure cost.”

 

($1 = 6.5250 yuan)

 

 

 

Hedge funds bet on recovery in 2021

TORONTO (Reuters) - Some global hedge fund investors are going into 2021
optimistic about a speedy snap-back from the economic challenges related to
the coronavirus pandemic.

 

Hedge funds, which use leverage and employ more aggressive, often riskier
strategies than other investors, believe many previously undesirable
sectors, ranging from energy to retail, will rebound in 2021.

 

Accounting for roughly $3 trillion in assets, hedge funds showed resilience
in 2020, with many outperforming the market, according to investors.

 

“We think 2021 is going to be a really positive year for the markets,” said
Jason Donville, president and CEO at Toronto-based hedge fund Donville Kent
Asset Management. He forecasts an explosion of pent-up demand for travel and
leisure producing a period of “super growth.”

 

“I think it will take a little while for the vaccines to roll out and then
somewhere around March, April, May, you’re going to get a confluence of the
vaccines getting to a certain critical mass... and infection rates
dropping.”

 

For 2020 as a whole, the S&P 500 unofficially rose 16.26%, a stunning rally
from a bear market that kicked off when the pandemic spread rapidly earlier
in the year.

 

“What I would say about 2021 is it looks like it’s going to be a year of
recovery,” said Robert Sears, chief investment officer at UK-based Capital
Generation Partners, which invests in hedge funds globally. “That’s the
consensus view.”

 

The gainers in 2020 included the S&P 500 Information Technology Sector, up
more than 42% as the sector benefited from the abrupt acceleration of online
trends. On the other hand, the S&P 500 Hotels Restaurants and Leisure eeked
out a gain of 1.4%.In the past quarter, however, leisure stocks have
rebounded as vaccine rollouts have accelerated hopes of recovery.

 

“I think macro conditions are going to continue to be quite volatile, so
macro should have a good year,” said Sears, referring to funds that invest
according to macroeconomic trends.

 

He added that funds that specialize in currencies and commodities should do
well.

 

Jack McIntyre, a portfolio manager at $62 billion U.S. firm Brandywine
Global, which runs a macro hedge fund strategy, said there will be “less
uncertainty and more certainty” in the new year.

 

Financials are a sector that has been challenged by coronavirus and could be
supported by a recovery, said Philippe Ferreira at Paris-based fund of hedge
fund Lyxor Asset Management, adding that the sector typically performs
better in the initial stage of a recovery.

 

“Managers are easing the short bias toward financials because we are
entering a recovery,” said Ferreira, whose firm invests in hedge funds
globally.

 

The S&P Financial Index fell around 4.3% in 2020 despite rebounding in the
fourth quarter.

 

“On the macro side, managers say that with rates so low, they are
diversifying fixed income with inflation and especially on the U.S. side and
gold,” said Ferreira.

 

North American energy is another beaten-down sector popular with hedge
funds, market participants said. The Canadian Energy Sector Index lost 37.8%
over the entirety of 2020 while a comparable index for the U.S. fell 37.3%.

 

“Anything in energy... all of that is a COVID recovery play to the extent
the demand for fuel goes up, people start going back to the office more,”
said one Canadian hedge fund manager.

 

“We’re adding the names like AltaGas, Pembina and Canadian Natural Resources
and we’ve been a buyer since post-the U.S. election.”

 

AltaGas stock plummeted 60% in March and is down 5.1% for the year through
Dec. 31. Shares in Pembina and Canadian Natural Gas fell 61.3% and 27.3%,
respectively, over 2020.

 

“I would say that energy consumption is going to make a very healthy
recovery and probably continue on an above-historical year-on-year level,”
said Jay Tatum, portfolio manager at New York-based metals-focused Valent
Asset Management. He added that oil was only one source of energy that would
see growth.

 

 

 

Bitcoin trades near Sunday record of $34,800 following 800% surge

TOKYO (Reuters) - Bitcoin traded at $33,365 in Asia on Monday, after soaring
to a record high of $34,800 on Sunday as investors continue to bet the
digital currency is on its way to becoming a mainstream asset.

 

The latest milestone for the world’s most popular cryptocurrency came less
than three weeks after it crossed $20,000 for the first time, on Dec. 16,
and bitcoin has now surged some 800% since mid-March.

 

With bitcoin’s supply capped at 21 million, some see it as a hedge against
the risk of inflation as governments and central banks turn on the stimulus
taps in response to the COVID-19 pandemic. Some also view it as a safe-haven
play during the COVID-19 pandemic, akin to gold.

 

“Some of it is reflecting the fear of a weaker dollar,” Bank of Singapore
currency analyst Moh Siong Sim said of the most recent rally.

 

“It seems like people are preferring bitcoin as an expression of concern
over currency debasement, relative to gold.”

 

Bitcoin’s advance also reflects increasing expectations it will become a
mainstream payment method, with PayPal opening its network to
cryptocurrencies.

 

The potential for quick gains has also attracted demand from larger U.S.
investors, as well as from traders who normally stick to equities.

 

“The rally gained even more momentum as insatiable investors continued
trading from home” during the New Year holidays, said Dave Chapman,
Executive Director at Hong Kong based digital asset company BC Group.

 

Institutional investors see the potential for greater risk-adjusted returns
compared to traditional investments, he said.

 

Bitcoin trades on numerous exchanges, one of the largest of which is
Coinbase, itself preparing to go public to become the first major U.S.
cryptocurrency exchange to list on Wall Street.

 

Multiple competitor cryptocurrencies use similar blockchain, or electronic
ledger, technology. Ethereum, the second biggest, shot to a record $1,014 on
Sunday.

 

 

 

Tesla 2020 deliveries beat estimates, but fall just short of Musk's target

(Reuters) - Tesla Inc on Saturday reported better-than-expected 2020 vehicle
deliveries, driven by a steady rise in electric vehicle adoption, but
narrowly missed its ambitious full-year goal during a punishing year for the
global auto industry.

 

 

The company delivered 499,550 vehicles during 2020, above Wall Street
estimates of 481,261 vehicles, according to Refinitiv data - but 450 units
shy of CEO Elon Musk’s target.

 

Musk tweeted here he was "proud of the Tesla team for achieving this major
milestone."

 

“At the start of Tesla, I thought we had (optimistically) a 10% chance of
surviving at all,” he said.

 

On Twitter, congratulations from supporters and bullish investors poured in,
lauding the electric vehicle maker for its stellar year, which has defied
wider auto industry trends of slumping sales, quarterly losses and global
supply chain disruptions.

 

Tesla’s share price has risen more than 700% over the last year, the company
has reported five consecutive quarterly profits and in December it was
included in the S&P 500 index.

 

 

But some online investor accounts criticized Tesla for saying it had
achieved its guidance.

 

Tesla at the start of 2020 said it would “comfortably exceed 500,000 units”
for the year, a target it has left unchanged despite the pandemic. Chief
Financial Officer Zachary Kirkhorn in October said Tesla was “aiming to
achieve (its) original 2020 guidance.”

 

Tesla has pinned hopes on new markets such as Europe and Asia, with
competition intensifying in its home turf as legacy automakers double down
on their investments in the booming EV space.

 

Tesla's delivery push has been supported by its new Shanghai factory, the
only plant currently producing vehicles outside California. The carmaker
said here Model Y production in Shanghai has begun, with deliveries expected
shortly.

 

Palo Alto, California-based Tesla said it delivered 180,570 vehicles during
the fourth quarter, a quarterly record for the electric carmaker, beating
estimates of 163,628 vehicles.

 

 

 

Carl Icahn sells over half his Herbalife stake for $600 million

(Reuters) - Activist investor Carl Icahn has sold more than half his stake
in Herbalife Nutrition back to the company for $600 million at $48.05 a
share and has given up the five seats on the firm’s board held by his
representatives, Herbalife said in a statement.

 

Icahn had a 15.5% stake in Herbalife as of Sept. 30. The latest deal is
expected to close by Jan. 7, after which Icahn Enterprises will hold about 8
million of Herbalife’s shares, representing a stake of about 6%, the
statement added.

 

The Wall Street Journal reported on Sunday that in recent days Icahn had
sold about 10% of his stake back to the multi-level marketing company, whose
products include dietary supplements.

 

Icahn's remaining stake is worth about $400 million, according to WSJ
on.wsj.com/3b4a4UR.

 

Icahn began buying Herbalife shares in 2013 while extolling the company and
had since been its largest shareholder.

 

In 2013, Herbalife and Icahn Enterprises entered into a support agreement
that allowed Icahn Enterprises to have five board seats for as long as it
held at least 14 million Herbalife shares.

 

With Icahn’s stake now falling below the threshold of 14 million shares, the
support agreement has been terminated and the activist investor’s board
representatives have stepped down, Herbalife said on Sunday..

 

Icahn said that the time for activism at Herbalife “has passed”.

 

“At the time (when he started investing in Herbalife), I believed the
company was in need of an activist and that certainly turned out to be
correct”, Icahn said on Sunday.

 

“The time for activism has passed as the company has grown, and I don’t
typically invest billions of dollars in companies where our role as activist
is not needed,” he added.

 

 

 

Quibi in talks to sell content catalog to Roku - WSJ

(Reuters) -Quibi is in advanced talks to sell its content catalog to
video-streaming device maker Roku Inc as the streaming service winds down
operations, the Wall Street Journal reported on.wsj.com/3pOxBNw on Sunday,
citing people familiar with the matter.

 

Los Angeles-based Quibi, which offered entertainment and news in episodes of
10 minutes or less on mobile phones, announced its closure in October, just
six months after its launch.

 

The service, founded by Hollywood producer Jeffrey Katzenberg and backed by
other investors, was launched on April 6 when audiences were sheltering at
home to help prevent the spread of the coronavirus.

 

Under the terms discussed, Roku would acquire rights to Quibi’s library, the
Journal said, adding that the financial terms of the deal were not disclosed
and talks could still fall apart.

 

A Roku spokeswoman said the company does not comment on rumors and
speculation.

 

Quibi did not immediately respond to Reuters request for comment.

 

 

 

Nigeria: Fishermen Threaten Showdown Over Shell's Failure to Pay $3.6bn
Bonga Spill Fine

Fishermen from the Niger Delta region operating under the auspices of
Artisanal Fishermen Association of Nigeria (ARFAN) have urged the federal
government to prevail on Shell Nigeria Exploration and Production Company
(SNEPCO) Limited to pay the $3.6 billion fine imposed by the oil industry
regulators over the 2011 Bonga oilfield spill or face a showdown.

 

The fishermen also demanded that the federal government compensate them for
shutting down their trade during the 2020 COVID-19 lockdown, saying they
were yet to recover from the impact of the lockdown on the fisheries sector,
as they were excluded from the palliatives given to the agriculture sector
during the lockdown.

 

The Coordinator of ARFAN in the Niger Delta region, Rev. Samuel Ayadi, told
journalists in Yenagoa yesterday that another lockdown following the second
wave of the COVID-19 pandemic would be unbearable for fishermen.

Ayadi said fishermen suffered seriously since 2011 when an equipment failure
from the Bonga offshore field operated by SNEPC discharged some 40,000
barrels of crude into the water.

 

"On December 20, 2011, during loading of crude oil at Bonga fields within
OML 118 situated at 120 kilometres off the Atlantic coastline, the export
line ruptured and discharged crude oil into the sea," he stated.

 

The export line, according to a Joint Investigation Report by National Oil
Spills Detection and Response Agency (NOSDRA) and SNEPCO, spewed about
40,000 barrels (6.4 million litres) of crude oil into the sea.

 

Ayadi, therefore, appealed to the federal government to prevail on Shell to
pay the NOSDRA imposed fine for the oil spill so that fishermen who lost
their occupation can recover from the effect.

 

He said fishermen complied with the order by NOSDRA that they should pull
out of the sea to avoid having contaminated catch while the cleanup lasted,
and therefore deserve to be indemnified from their losses.

 

NOSDRA had in March 2015 imposed the fine on Shell for discharging 40,000
barrels of crude oil into the Atlantic Ocean on December 20, 2011.

 

The fine comprised $1.8 billion as compensation for the damages done to
natural resources and consequential loss of income by the affected shoreline
communities as well as a punitive damage of $1.8billion.

 

However, Shell lost its bid to cancel the fine, when a Federal High Court in
Lagos presided over by Justice Mojisola Olatoregun on June 20, 2018,
dismissed the suit it filed against NOSDRA.-This Day.

 

 

 

Rwanda: Govt Mulls Inclusion of Covid-19 Tests Into Health Insurance Schemes

Rwanda Biomedical Centre (RBC) is planning the inclusion of Covid-19 tests
in different health insurance schemes, The New Times has learned.

 

The consideration comes at a time when the demand for Covid-19 tests in the
country is increasing, particularly because medics look at it (testing) as
one of the principal ways of preventing the spread of the virus among
Rwanda's population.

 

Currently, more people are going for testing, partly because without
negative Covid-19 results within a specified time, one cannot be allowed
access to a number of activities, for example travelling, attending
particular conferences, staying in a hotel, taking part in professional
sports games, among others.

In recent weeks, the Ministry of Health (MoH) has been putting in more
effort to improve citizens' access to the testing services.

 

For instance, with effect from December 17, MoH cleared private clinics to
start testing patients for the coronavirus using antigen rapid tests.

 

Efforts are underway to soon avail the same services in public health
centres, as information from RBC shows that distribution of rapid diagnostic
tests to such facilities started last week, and has continued even during
this week.

 

Going forward, RBC has now presented the prospect of including the tests
into insurance schemes, as the country looks to further improve access.

 

"It is not something that we are going to do right away, but it is in our
plans. In our near future phases, we want to make it part of the screening
or tests that are already part of this scheme (insurance)," said Dr Sabin
Nsanzimana the Director-General of RBC.

 

He noted that his institution is keeping an eye on the developments that are
unfolding in the world including the vaccine as well as other public health
measures, but he emphasized testing as a key tool that Rwanda can be using
as more solutions continue to come in.

 

Meanwhile, for the soon upcoming tests to be administered at health centres,
it should be noted they will be given free of charge, though the
beneficiaries will be required to meet some criteria, among which: they
(beneficiaries) should have been close contacts of a positive case; or they
are patients themselves requiring a follow-up test.

 

In private clinics, currently, the cost of a single test should not go above
Rwf10,000. This is in regard to an agreement that RBC reached with private
clinics concerning the prices of tests.

 

So far, there is a list of 42 private clinics countrywide that RBC
accredited to start testing people, using antigen rapid tests.-New Times.

 

 

 

Kenya: Global Health Crisis Paved the Road for 4iR

Some years are so eventful that they are regarded as pivotal in history.
Years when wars and slavery ended and deep generational fissures burst into
the open are some of them. Because of Covid-19, 2020 will certainly join the
list.

 

But imagine living our 2020 reality in 1980 -- with no connected devices,
ability to video-conference or artificial intelligence (AI).

 

The pandemic may have had a devastating impact on the world but not all its
transformative effects have been negative. Every society it touched was
challenged to adapt to a new reality.

 

As individuals and companies searched for solutions, the acceleration of the
adoption of Fourth Industrial Revolution (4iR), or Industry 4.0,
technologies -- such as cloud computing, AI, 5G network and 'Big Data' --
approximated a fever pitch.

 

 

They became an integral part of not only how we survived the pandemic but
will exist in a post-pandemic world.

 

As workforces moved home to slow down the spread of the coronavirus, cloud
computing helped companies to continue with their day-to-day operations. It
allowed them to expand and contract information technology (IT)
infrastructure in a cost-effective way, which was critical as needs evolved
-- and will continue to as we emerge into a new reality.

 

Now that more companies experienced the flexibility of cloud computing, they
can now be more strategic about how they will use it and also refine how
they use it to develop best practices.

 

Digital transformation

 

Public health officials relied on AI to better understand infection patterns
and predict surges in cases to help hospital administrations navigate demand
on the system. Bots were put into use for contactless deliveries, cleaning
and administering medication.

 

Whether figuring out ways to communicate with customers or stakeholders,
automate business processes or optimise online orders, AI was making it all
possible. AI learns from experience. To get better in the future, the surge
in reliance on AI will certainly result in it becoming more advanced.

 

In countries like China, 5G has been the backbone of the online society. The
demand to handle a varied stream of data from our inter-connected devices at
a high speed makes the 5G network an imperative in the advancements of 4iR.

 

Covid-19 showed how important 5G in the transformation to Industry 4.0 and
created new use cases and business demand for stable wireless networking.

 

As the pandemic is still very much in our current reality, it's safe to say
that we're still in the midst of transforming with Industry 4.0
technologies.

 

A year ago, you most likely wouldn't have expected that annual in-person
tech events would have moved from the convention hall to the internet or
that online grocery shopping and delivery would be embraced by so many.

 

If Covid-19 taught us anything, it's how much can change in a year. Now that
it accelerated digital transformation and adoption of Industry 4.0
technologies, imagine where we'll be a year from now.-Nation.

 

 

 

Nigeria: Gombe to Resume Paying N30,000 Minimum Wage

Gombe — The Gombe State Government said it would resume paying N30,000 new
minimum wage to civil servants in the state beginning from January 2021. The
state Commissioner for Finance and Economic Development, Muhammad Gambo
Magaji, disclosed this while giving a breakdown of the state's 2021 budget
signed into law by Governor Inuwa Yahaya. The state government had in March
2020 suspended the payment of the N30,000 minimum wage after paying for one
month, citing dwindling revenues as the reason.

 

Magaji explained that the 2021 budget had captured the new minimum wage,
saying it was the reason the personnel cost in the approved budget had gone
up.

 

He also stated that to improve the wellbeing of residents, the cost of
governance had been reduced to less than 10 percent of the total budget,
"unlike the previous administration who spent 25 percent."-Daily Trust.

 

 

 

Nigeria: AfCFTA Will Boost Nigeria's Export - Report

A study initiated by the Nigerian Economic Summit Group (NESG) on the impact
of the implementation of the African Continental Free Trade Area (AfCFTA)
agreement on Nigerian economy has revealed that it would have positive
impacts on Nigeria's exports.

 

The study titled, "Impact Assessment Study and Economy-Wide Implications of
the AfCFTA on the Nigerian Economy," stated that if linear cuts would be
applied to tariff elimination, the country's aggregate export will increase
by 0.02 per cent in both the first and second five-year implementation
periods respectively.

 

But, "if the tariff elimination is back-loaded, aggregate export is expected
to increase by 0.01 per cent and 0.03 per cent in the first and second
implementation periods respectively.

"Even when tariff elimination is front-loaded, aggregate export will still
increase by 0.02 per cent in both the first and second five-year
implementation periods respectively.

 

"When sensitive products are protected from tariff cuts, aggregate export
will also increase by 0.02 per cent in both the first and second five-year
implementation periods respectively," the study said.

 

The study, which was carried out by the Centre for Petroleum Energy
Economics and Law (CPEEL) at the University of Ibadan, in conjunction with
Equilibria Consult, however, estimated that Nigeria's government revenue
would decline by 0.21 per cent with the implementation of the continental
pact.

 

It projected that government revenue during the first period of five years
of the implementation of the AfCFTA would increase by 0.42 per cent before
declining by 0.13 per cent if the government could increase its investment
by 10 per cent.

It attributed the envisaged reduction in government revenue to the decrease
in tariff revenue, which constituted a major source of government's non-oil
revenue.

 

It, however, noted that government revenue would be in positive direction in
both the first and second period of the AfCFTA implementation if foreign
investment inflow and an increase in labour supply were assumed.

 

The study further indicated that the AfCFTA would have a trade-diverting
effect on the country as Nigeria's imports from non-African countries would
be substituted by imports from African countries.

 

"The AfCFTA implementation in Nigeria is expected to create the phenomenon
of trade-diversion and this will be more prominent in Nigeria's imports from
West African countries and South Africa," the study said.

Nevertheless, simulations carried out by its researchers according to the
report indicated that the AfCFTA tariff liberalisation would cause a
negligible decline in the household's income.

 

It showed that the decline in household income would be more severe for
rural rich households and urban-rich households than on the poor households
in both urban and rural households, which would only experience a marginal
decrease in income at the average of about 0.01 per cent for both rural and
urban poor households.

 

"The expected decrease in income of rural and urban rich households will be
an average of about 0.02 per cent for each household type. However, when
government intervention and inflow of foreign investment, as well as the
increase in labour supply, are simulated, the tide of negative household
income changes is reversed," the study stated.

 

The study, however, warned that that reliance on foreign saving inflows to
grow the economy might not pay-off readily and recommended that the country
should embark on massive infrastructure upgrade and institutional reforms to
improve its business environment.

 

"The infrastructure upgrade could be realised through the concession of
major infrastructural projects like electricity, roads, bridges, airports,
seaports, etc. to the private sector.

 

"The concessions must, however, be complemented by strong institutional
reforms to effectively regulate the operations of the private sector," it
said.

 

It added that Nigeria should, "maximise the opportunities that are available
to it in the AfCFTA agreement by enhancing the space for both domestic and
foreign investments.

 

"Thus, there is the need to create a more business-friendly environment and
reduce existing binding trade constraints in the country that has so far
deterred the growth of foreign investment in different sectors of the
economy.

 

"In addition to providing a reliable transportation system and power supply,
the country can restore a business-friendly environment by substantially
addressing all major security challenges that have in recent time inundated
the country and discouraged foreign investors from doing business in
Nigeria."

 

It also recommended a combination of trade liberalisation and increased
drive for inflow of foreign saving/investment into the Nigerian economy as
measures that would counter the expected negative impacts of AfCFTA on
government revenue.

 

 

"The government can complement this with a programme of diversification of
the Nigerian economy. If successfully pursued, diversification of the
Nigerian economy will, in turn, boost the tax revenue base of the Nigerian
government.

 

"The government may begin to undertake deliberate measures that will
strengthen sectors including health, education, electricity, transportation,
textile, apparel and footwear to maximise the benefits that are likely to
accrue to them when the AfCFTA agreement comes into force.

 

"This can be done by recognising these sectors as AfCFTA priority sectors
for immediate government support.

 

The government support may include tax breaks/rebate, government-backed
preferential loan arrangements from commercial banks, etc."

 

The study tipped the chemical, chemical products, electrical, wood and wood
products, cement and construction as sectors that would suffer the greatest
with the implementation of the AfCFTA and urged government to create
safeguards or incentives for them by including the sectors in the sensitive
list.

 

"This will help delay liberalisation of these sectors to a later period and
allow for the adjustment of the sectors to realities of the AfCFTA
agreement," the study said.-This Day.

 

 

Tanzania: RC Hints On Special Desk to Boost Investment in Region

MARA Regional Commissioner (RC), Mr Adam Malima plans to introduce a special
unit or desk in his office that will facilitate investors' deal to invest in
the area.

 

"We are going to have a section special for investment to speed up
investments in our region and address any element of red tape," Mr Malima
said recently in Musoma, while speaking to local investors and Mara
residents living and working outside the region.

 

"May I assure both local and foreign investors of full cooperation... local
and foreign investors come and see me at my office, just come," he
repeatedly said, adding that the region has all what an investor would
require to do business in the area.

Mr Malima further said the region is endowed with a wide range of investment
opportunities mentioning some as minerals, tourism, fisheries and
agriculture just to mention a few.

 

Besides being the home of the Serengeti National Park, the region also
borders large Lake Victoria water body, and the world's second largest lake.

 

He list also included top three cash crops of coffee, cotton and sisal
saying: "We have three strategic crops in Mara Region and that is cotton,
coffee and sisal. "We have two strategic hills, which if fully tapped, we
can boost tourism sector development in the region... the hills are Balili
and Chamriho, both located in Bunda district. "It is only at Balili Rock
Mountain that you can stand and view Serengeti National Park and Lake
Victoria at ago, nowhere else on earth."

 

He further said he plans to market the hills in collaboration with
development partners operating in the region.-Daily News.

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

New Year’s Day

 

01/01/2021

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

Seed co Int.

Dairibord

 


Starafrica

Medtech

Turnall

 


Seed co

 

 

 


 

 

 

 


 <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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