Major International Business Headlines Brief::: 08 January 2021

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Major International Business Headlines Brief::: 08 January 2021

 


 

 

	
 


 

 


ü  Elon Musk becomes world's richest person as wealth tops $185bn

ü  John Lewis among UK firms scrapping overseas deliveries

ü  US backs down from tariffs over French tech giant taxes

ü  Meat factories warn Covid absences could hit supplies

ü  Brexit: Problems grow at UK ports with backlogs and delays

ü  LVMH seals purchase of Tiffany after takeover fight

ü  US firms condemn 'appalling' insurrection

ü  Apple and Hyundai in talks over electric car tie-up

ü  Boeing to pay $2.5bn over 737 Max conspiracy

ü  Tesla's stock market value tops Facebook's in huge trading

ü  Asian stocks hit fresh records on hopes for global recovery

ü  Chinese bargain hunters pile into stocks blacklisted by Trump

ü  Nigerian Govt Directs Reversal of Electricity Tariff Adjustment

ü  Liberians in U.S. Launch Investment Group to Invest in Liberia's Health,
Real Estate, and Agriculture Sector

ü  Africa: Elon Musk Is World's Richest Man - Dangote Still Africa's
Wealthiest

ü  Tanzania: Two Chinese Companies to Construct Tanzania's Fifth Lot of SGR

 

 


 

 


Elon Musk becomes world's richest person as wealth tops $185bn

Elon Musk has become the world's richest person, as his net worth crossed
$185bn (£136bn).

 

The Tesla and SpaceX entrepreneur was pushed into the top slot after Tesla's
share price increased on Thursday.

 

He takes the top spot from Amazon founder Jeff Bezos, who had held it since
2017.

 

Mr Musk's electric car company Tesla has surged in value this year, and hit
a market value of $700bn (£516bn) for the first time on Wednesday.

 

That makes the car company worth more than Toyota, Volkswagen, Hyundai, GM
and Ford combined.

 

Mr Musk reacted to the news in signature style, replying to a Twitter user
sharing the news with the remark "how strange".

 

An older tweet pinned to the top of his feed offered further insight into
his thoughts on personal wealth.

 

"About half my money is intended to help problems on Earth, and half to help
establish a self-sustaining city on Mars to ensure continuation of life (of
all species) in case Earth gets hit by a meteor like the dinosaurs or WW3
happens and we destroy ourselves," it reads.

 

The tycoon's fortunes have been buoyed by politics in the US, where the
Democrats will have control of the US Senate in the forthcoming session.

 

Daniel Ives, an analyst with Wedbush Securities wrote: "A Blue Senate is
very bullish and a potential 'game changer' for Tesla and the overall
electric vehicle sector, with a more green-driven agenda now certainly in
the cards for the next few years."

 

Expected electric vehicle tax credits would benefit Tesla, "which continues
to have an iron grip on the market today", he added.

 

Mr Bezos has also seen his fortunes rise over the past year. The coronavirus
pandemic has meant Amazon benefited from stronger demand for both its online
store and cloud computing services.

 

However, he gave a 4% stake in the business to his ex-wife MacKenzie Scott
after they split, which helped Mr Musk overtake him.

 

In addition, the threat of regulation has meant Amazon's stock has not risen
as high as it might otherwise have done.

 

The owner of a business which has only just made its first annual profit and
is still a minnow compared to the likes of Toyota - or Amazon - is now the
world's richest person.

 

It is the fact that Tesla's share price has increased more than seven-fold
in the past year that has sent Elon Musk's fortune rocketing past that of
Jeff Bezos.

 

To believe the electric car-maker's worth could rise so rapidly in just 12
months is the ultimate example of irrational exuberance.

 

It means that Musk will have to show within the next five years that Tesla
can make more profits than just about the whole of the rest of the motor
industry combined to justify the valuation.

 

Mind you, his many fans will point out that the somewhat eccentric tycoon
has constantly confounded the sceptics who bet that he would go bust.

 

And of course 20 years ago another tech visionary was staring disaster in
the face when the dot com bubble burst and big profits seemed a distant
dream - but Jeff Bezos went on to make those who bet on Amazon very rich
indeed.--BBC

 

 

John Lewis among UK firms scrapping overseas deliveries

Department store chain John Lewis is one of many British business that have
scrapped overseas deliveries.

 

Until last month, it offered EU delivery through its website, but the offer
has now been withdrawn.

 

John Lewis said the move was not related to Brexit, but because its new
strategy was to focus on the UK.

 

However, confusion surrounding post Brexit trading rules has led other firms
such as Asos and Fortnum & Masons to temporarily suspend EU deliveries.

 

Luxury food store Fortnum & Masons warns customers on its website: "We are
temporarily unable to deliver to Northern Ireland or countries in the
European Union."

 

At fashion website Asos, anyone asking for delivery to countries such as
France, Germany or Italy is simply told: "Sorry, the delivery options are
currently unavailable."

 

Meanwhile store chain Debenhams has temporarily shut its online business in
Ireland.

 

"We are currently unable to deliver orders to the Republic of Ireland, due
to uncertainty around post-Brexit trade rules," it said.

 

John Lewis told the BBC the decision to scrap overseas deliveries was based
on company strategy.

 

"As part of our Partnership Plan for the next two years, in John Lewis we
have decided to focus on areas of the business that will deliver products
and services for our local UK customers," it said.

 

"As such, we are no longer pursuing international expansion and decided to
cease our online international delivery service in mid-December."

 

Earlier this week, the BBC reported that some EU specialist online retailers
have said they will no longer deliver to the UK because of tax changes which
came into force on 1 January.

 

Accountants firm UHY Hacker Young said fears of extra costs was causing
firms to suspend deliveries.

 

"Many UK businesses exporting to the EU are going to be hit by tariffs,"
said Michelle Dale, of accountants UHY Hacker Young.

 

"Businesses have also been completely blindsided by the 'rule of origin'
part of the deal, which leaves them at a major competitive disadvantage when
selling in the EU.

 

"Unfortunately, not enough was done to prepare them for this."

 

Rule of origin

Under the "rule of origin" clause, goods made, or containing components
made, outside the UK or EU - such as in China - and resold by UK businesses
are now subject to VAT and import duties when sold to the EU.

 

Many British businesses exporting to the EU have much of their supply chain
based outside the EU, meaning they will fall foul of the clause.

 

Some have suspended sales to customers in the EU as they try to establish
whether import duty is due or if they can switch to UK or EU components.

 

But West Midlands bicycle saddle maker Brooks England has taken it a stage
further and suspended orders to the UK.

 

"We continue to produce each leather saddle in our West Midlands factory in
more or less the same manner as we have for over 150 years," it said.

 

"However, upon their completion, these saddles are shipped first to our
logistics centre and from there to cyclists around the world.

 

"Due to this, the ongoing changes in the Brexit situation have made it
necessary to temporarily suspend all new orders to the UK at this time," the
firm added.--BBC

 

 

 

US backs down from tariffs over French tech giant taxes

image captionHandbags were among the French items valued at $1.3bn in annual
trade due for tariffs

America's top trade negotiator said the US would not move forward with
tariffs on French goods planned as punishment for new taxes on US tech
firms.

 

The decision comes less than three weeks before US President Donald Trump is
due to leave office.

 

The president has embraced increasing border taxes as part of his trade
strategy, but incomer Joe Biden is expected to take a different approach.

 

This is the second time the US has put off plans for the French tariffs.

 

The US also agreed to postpone plans for the duties in 2020, after France
said it would delay any collection of the new tax on tech giants.

 

At the time, the two sides said they would work with other countries toward
an international agreement about how money made by tech firms should be
treated.

 

Those negotiations, led by the Organisation for Economic Cooperation and
Development, have been delayed, but a spokesperson for the multilateral
group said it still hoped to "bring about international consensus" later
this year.

 

In an interview with the BBC last month, US Trade Representative Robert
Lighthizer said he agreed "as a general notion" that tech firms should pay
tax in markets where they operate and hoped the talks would bear fruit.

 

"My own view is that we have to come to some kind of global agreement on
this issue of how do we tax these large corporations," he said.

 

On Thursday, the US said it was"indefinitely"suspending its plans for the
25% taxes, which had been due to go into effect on 6 January, on French
goods such as handbags and cosmetics, valued at about $1.3bn (£958m) in
annual trade.

 

The office of the US Trade Representative said the decision was due to its
wider review of the so-called "digital services" taxes that many countries,
including the UK, are moving to impose on tech companies.

 

"Given that these... investigations are ongoing and have not yet reached any
determinations on what, if any, trade action should be taken, the US Trade
Representative has determined that it is appropriate to suspend the action
in the France DST investigation indefinitely," the department said.

 

In investigations spanning France, India, Italy and Turkey so far, the
department has concluded such measures unfairly target American firms.

 

Reviews of laws in the UK, European Union, Brazil and other places are still
ongoing.--BBC

 

 

 

Meat factories warn Covid absences could hit supplies

The UK meat industry has called for the early vaccination of workers to keep
food supplies running smoothly during the coronavirus crisis.

 

It warned that absences during the pandemic, coupled with disruption at
ports, could hit food supply chains.

 

An early vaccination call for supermarket staff was also made by the boss of
Sainsbury's on Thursday.

 

The government said the food industry remains "well-prepared" to make sure
people have the food they need.

 

The British Meat Processors Association (BMPA) said coronavirus and
disruption at ports due to new systems brought in after the Brexit
transition period were "a severe challenge to the industry and to the smooth
running of the nation's food supply chain".

 

It argued frontline workers in meat factories should get early vaccinations
due to the risk of a rapid spread of the new strains of the virus among key
workers.

 

The government has set out who will get vaccinated first, which starts with
care home residents and the oldest and most vulnerable people.

 

But Nick Allen, chief executive of the BMPA, said it would be logical to
also prioritise key workers in the food industry.

 

"As the new coronavirus variant takes hold across the whole of the UK, we
are hearing widespread reports of rapidly rising absences in the food supply
chain," he said.

 

Some firms supplying supermarkets "are seeing a tripling of staff having to
take time off work through illness or enforced self-isolation", he added.

 

Pressures on staff during the lockdown include illness, having to
self-isolate, and childcare while some schools are closed under England's
lockdown.

 

Due to the specialised nature of meat production, if even a few key factory
personnel such as the foreman or managers are absent, production can stop,
Mr Allen said.

 

Vaccine rollout

Early vaccinations should not be restricted to the meat industry, according
to Mr Allen. All key workers in the food industry should get early
vaccinations, he said.

 

Even supermarkets themselves are having problems with absences, he
suggested.

 

"The key food supply chains ought to be prioritised," he said. "All food
industry key workers should be prioritised [for vaccination]".

 

The government is advised on vaccinations by a group of experts called the
Joint Committee on Vaccination and Immunisation (JCVI).

 

Professor Wei Shen Lim, Covid-19 Chair for the JCVI, said the committee's
advice on vaccine prioritisation "was developed with the aim of preventing
as many deaths as possible."

 

"As the single greatest risk of death from Covid-19 is older age,
prioritisation is primarily based on age," he said.

 

"It is estimated that vaccinating everyone in the priority groups would
prevent 99% of deaths, including those associated with occupational exposure
to infection," the professor added.

 

Supermarket sweep

Sainsbury's boss Simon Roberts also called for early vaccinations for key
workers on Thursday.

 

"My view is that priority has to be given to those that need it first," he
said. "Those on the frontline should be part of that as and when capacity
becomes available."

 

Absence rates for Sainsbury's staff are lower than at the peak of the
crisis, but are rising, and have stepped up in the last few days, he said.

 

The Sainsbury's absence rate is currently 8%. The business has 172,000
employees.

 

Asda said that it had seen an increase in employees self-isolating and
shielding in line with the rising UK infection rate.

 

However, it said that absence rates were still lower than at the peak of the
pandemic.

 

"We are taking proactive steps to manage colleague absences by retaining
temporary colleagues hired over the Christmas period and are bringing in
additional temporary colleagues in those stores that need them the most,"
and Asda spokesman said.

 

Tesco has asked clinically vulnerable staff to stay at home.

 

Morrisons, meanwhile, is also seeing more absences, but the rate is still
more than half that of the peak of the pandemic. It is also a bigger
business having taken on 26,000 extra staff during the crisis.

 

Andrew Opie, director of food and sustainability at the British Retail
Consortium said: "While absence rates are currently rising, retailers are
closely monitoring the situation in stores and distribution centres and
supply chains continue to run smoothly.

 

A spokesperson for the Department for Environment, Food, and Rural Affairs
said: "As we have seen in recent months, the UK has a large, diverse and
highly resilient food supply chain.

 

"We continue to closely monitor the situation and are working closely with
the food industry on the workforce and absence related challenges presented
by the pandemic."

 

They added that the food industry remains "well-prepared" to make sure
people across the country have the food they need.

 

Problems at ports

UK ports have seen disruption due to the effects of coronavirus on trade and
new systems brought in after the Brexit transition period.

 

Mr Roberts of Sainsbury's said that, so far, the flow of goods from Europe
is in decent shape, but there had been some problems in sending food to
Northern Ireland.There is still some backlog in general merchandising, he
added.

 

However, Scottish seafood exporters warned on Thursday that they had been
hit by the "perfect storm of Brexit disruption".

 

"Weakened by Covid-19, and the closure of the French border before
Christmas, the end of the Brexit transition period has unleashed layer upon
layer of administrative problems, resulting in queues, border refusals and
utter confusion," said Donna Fordyce, chief executive of Seafood Scotland.

 

She said IT problems in France meant consignments were diverted from
Boulogne-sur-Mer to Dunkirk, "which was unprepared as it wasn't supposed to
be at the export frontline."

 

There have also been IT issues on the UK side with HMRC, she added.

 

"These businesses are not transporting toilet rolls or widgets," she said.
"They are exporting the highest quality, perishable seafood which has a
finite window to get to markets in peak condition. If the window closes
these consignments go to landfill."

 

The National Federation of Fishermen's Organisations also warned of delays
to fish exports due to "a brick wall of bureaucracy".--BBC

 

 

 

Brexit: Problems grow at UK ports with backlogs and delays

British retailers are concerned at new trade barriers being applied after
last month's trade deal with the EU.

 

Many traders now believe they will be paying taxes on exports and imports of
certain types of food and clothing that are not fully made in Britain.

 

There are also signs that they are struggling with new paperwork
requirements following the post-Brexit deal.

 

Some parcel companies have suspended road deliveries to Europe as a result.

 

Britain sealed a trade deal with the European Union (EU) on 24 December that
was billed as preserving its zero-tariff and zero-quota access to the bloc's
single market.

 

But major retailers that use the UK as a distribution hub for European
business could face possible tariffs if they re-exporting goods to the EU.

 

"Tariff free does not feel like tariff free when you read the fine print,"
Marks & Spencer's chief executive Steve Rowe told Reuters.

 

"For big businesses there will be time-consuming workarounds but for a lot
of others this means paying tariffs or rebasing into the EU."

 

The British Retail Consortium (BRC), which represents more than 170 major
retailers, is working with members on short-term options and is seeking
dialogue with the government and the EU on longer-term solutions to mitigate
the effects of the new tariffs.

 

The Cabinet Office said it was working closely with business to help them
adapt to any new trading arrangements.

 

Rotten fish

Scottish seafood exporters say they have been hit by "perfect storm" of
Brexit disruption, which could sink a centuries-old industry.

 

"These businesses are not transporting toilet rolls or widgets. They are
exporting the highest quality, perishable seafood which has a finite window
to get to markets in peak condition," said Donna Fordyce, chief executive of
Seafood Scotland.

 

"If the window closes these consignments go to landfill."

 

She said the sector has already been weakened by Covid-19, the closure of
the French border before Christmas as well as "layer upon layer" of problems
associated with Brexit.

 

The group fears that without exports, the fishing fleet will have little
reason to go out.

 

"In a very short time we could see the destruction of a centuries-old market
which contributes significantly to the Scottish economy," added Ms Fordyce.

 

Lost in the mail

The parcel delivery service DPD UK said it has paused its European Road
Service due to the '"increased burden" of customs paperwork for packages
heading to the EU, including the Republic of Ireland.

 

DPD said 20% of parcels had "incorrect or incomplete data attached", which
meant they would have to be returned.

 

 

In an email to its business customers, the company said that it had been a
"challenging few days" for its international operation, and that it would
"pause and review" its service. It plans to restart on 13 January.

 

"It has now become evident that we have an increased burden with the new,
more complex processes, and additional customs data we require from you for
your parcels destined to Europe" the firm wrote.

 

Hauliers grinding gears

The boss of one of Wales' largest hauliers said logistical problems have
emerged at the Irish border too.

 

Andrew Kinsella, managing director of Gwynedd Shipping, said his company has
a backlog of 60 lorries waiting to be shipped to Dublin.

 

He said many hauliers are finding that their customers are not able to
generate the special declarations that are needed to ultimately enable a
lorry to get onto a ferry.

 

"Whilst you don't see queues at ports and terminals the reality is that
these queues are developing elsewhere in our depot in Holyhead , in our
depot in Deeside and in our depot in Newport in South Wales and lots of
hauliers have depots in the proximity of ports," he said.

 

"There are a lot of issues about demarcation about who is going to arrange
the export declaration with the UK revenue authorities, who's going to
arrange the import declaration, the hauliers then trying to arrange the
import safety and security declaration to create an ENS number which helps
you generate a PBN number so there has been a lot of everyone finding their
feet".--BBC

 

 

LVMH seals purchase of Tiffany after takeover fight

French luxury giant LVMH has completed its purchase of US jeweller Tiffany,
having previously sought to walk away from the deal.

 

The firm has named a new team to lead Tiffany, which includes a son of LVMH
chief executive Bernard Arnault.

 

It is paying $15.8bn (£11.6bn) for the firm - a slight discount from the
initially announced $16.2bn.

 

The deal will help LVMH to expand into the jewellery sector - a fast-growing
area of the luxury goods market.

 

LVMH first announced the acquisition more than a year ago. But progress
stalled as the pandemic's impact on business reportedly soured Mr Arnault's
view on the price initially agreed.

 

Tiffany, credited with inventing the modern engagement ring and immortalised
in the Breakfast at Tiffany's film starring Audrey Hepburn, ultimately sued
LVMH to force the deal to go ahead.

 

'Accelerate growth'

Analysts expect that LVMH, home to brands including Fendi, Louis Vuitton and
Veuve Clicquot champagne, will review everything from Tiffany's network of
stores to strategies in areas such as online sales as it pushes to revive
the brand.

 

It is expected to try to raise its profile among younger buyers and
customers in China.

 

French billionaire Mr Arnault said he was "optimistic about Tiffany's
ability to accelerate its growth" and committed to supporting the firm.

 

"Tiffany is an iconic brand and a quintessential emblem of the global
jewellery sector," he said.

 

LVMH said Anthony Ledru, who ran Louis Vuitton in the United States and
previously worked at Tiffany and rival jeweller Cartier, would become chief
executive immediately.

 

Also joining the firm as executive vice president for product and
communication is Mr Arnault's 28-year-old son Alexandre, who previously ran
LVMH's luggage label Rimowa.--BBC

 

 

 

US firms condemn 'appalling' insurrection

US business leaders widely condemned Wednesday's storming of the Capitol,
even as financial markets marched higher, untouched by the turmoil.

 

Former allies of President Donald Trump, including financier Steve
Schwarzman, said the effort to disrupt the election was "appalling".

 

The American Petroleum Institute said President Trump had proven himself
"unworthy" of his title.

 

One top manufacturing group called for his immediate removal.

 

The president of the National Association of Manufacturers, said the push to
overturn Democrat Joe Biden's victory in the November election was
"sedition", and blamed the president and some Republican lawmakers for
enflaming sentiment.

 

"The outgoing president incited violence in an attempt to retain power, and
any elected leader defending him is violating their oath to the Constitution
and rejecting democracy in favour of anarchy," said Jay Timmons, a
Republican who was once seen as having a close working relationship with the
White House.

 

"Anyone indulging conspiracy theories to raise campaign dollars is
complicit."

 

Congress certifies Joe Biden's victory after chaotic scenes

Trump officials quit after mob storms US Capitol

He said that the vice president should work with cabinet members to remove
President Trump, using the 25th amendment - a call that was later taken up
by many Democrats and others.

 

Uneasy relationship

The widespread condemnation came as the business community faces broader
questions about its relationship with President Trump, which has been uneasy
during his time in office.

 

The corporate world has supported some of his policies, including
deregulation and the slashing of taxes on corporations in 2017 from 35% to
21%.

 

But some of the president's other policies regarding trade and immigration,
as well his support from racist groups and willingness to attack US
businesses on social media, have challenged chief executives who would
typically try curry favour with America's top political leader.

 

Some bosses who took positions in the administration, or seats on business
advisory groups, later tried to distance themselves.

 

Gary Cohn, a former Goldman Sachs executive who helped usher tax cuts in,
was the director of President Trump's National Economic Council before later
stepping down. He called Wednesday's rioting "un-American".

 

He said that violent pro-Trump supporters "must be condemned in the
strongest possible terms."

 

Apple boss Tim Cook, also known for forging ties with President Trump, said
"those responsible for this insurrection should be held to account".

 

"We must complete the transition to President-elect Biden's administration,"
he added.

 

On Wednesday, Canadian e-commerce platform Shopfiy - which has faced years
of calls to cut ties with right-wing websites - said it was taking down
stores affiliated with the President, citing policies against inciting
violence.

 

Activists pushed US retail giant Amazon to take similar action.

 

Despite the political turmoil in the United States, financial markets have
hit new heights during the Trump presidency.

 

On Wednesday, the Dow receded slightly as footage of rioters spread. But it
still gained 1.4% to close at yet another new high. The S&P 500 and Nasdaq
also gained.

 

Markets opened higher again on Thursday.

 

The victory of two Democrats in Georgia Senate races, confirmed on
Wednesday, gives Mr Biden's party a slim majority in the Senate, which is
seen as making further stimulus spending more likely.

 

"It's one of those days where if you look at the markets, but don't look at
the news, you'd never guess that the two were happening on the same day,"
said Emma Wall, analyst at Hargreaves Lansdown.

 

"They're looking through this unrest and seeing a Democratic almost clean
sweep ... and there will hopefully be more certainty in the market," she
added.--BBC

 

 

 

Apple and Hyundai in talks over electric car tie-up

Hyundai has announced it is in early discussions with Apple to work together
on self-driving electric cars.

 

The South Korean car firm's share price rocketed more than 20% on Friday
when the news was announced.

 

"Apple and Hyundai are in discussions but they are at an early stage and
nothing has been decided," it said in a statement.

 

Last month, news emerged that Apple was moving forward with self-driving car
technology with a 2024 launch date.

 

The electric vehicle (EV) market is becoming increasingly competitive with
companies like Tesla grabbing the headlines with its rapidly-increasing
valuation. Its founder Elon Musk is now the richest man in the world,
displacing Amazon founder Jeff Bezos.

 

Experts say an electric vehicle from Apple is still at least five years
away.

 

They say pandemic-related delays could push the start of production into
2025 or beyond.

 

Catching up

Hyundai has already been pushing into new technologies such as electric,
driverless and flying cars.

 

Last month, it took a controlling stake in Boston Dynamics in a deal that
valued the mobile robot firm at $1.1bn.

 

The company is also setting up a $4bn (£3bn) autonomous-driving joint
venture with auto parts supplier Aptiv.

 

Both partners will invest $2bn, while Ireland-based Aptiv will contribute
about 700 engineers and transfer patents and intellectual property to the
venture.

 

Apple's efforts to produce an electric car, known as Project Titan, have
been on and off ever since plans were revealed in 2014.

 

There have been rumours over who would assemble an Apple-branded car as it
may be difficult for the tech giant to manufacture them on its own.

 

Its rival Alphabet's Waymo chose a factory in Detroit to mass produce its
own self-driving cars.--BBC

 

 

 

Boeing to pay $2.5bn over 737 Max conspiracy

Boeing has agreed to pay $2.5bn (£1.8bn) to settle US criminal charges that
it hid information from safety officials about the design of its 737 Max
planes.

 

The US Justice Department said the firm chose "profit over candour",
impeding oversight of the planes, which were involved in two deadly crashes.

 

About $500m will go to families of the 346 people killed in the tragedies.

 

Boeing said the agreement acknowledged how the firm "fell short".

 

Boeing chief executive David Calhoun said: "I firmly believe that entering
into this resolution is the right thing for us to do - a step that
appropriately acknowledges how we fell short of our values and expectations.

 

"This resolution is a serious reminder to all of us of how critical our
obligation of transparency to regulators is, and the consequences that our
company can face if any one of us falls short of those expectations."

 

'Fraudulent and deceptive conduct'

The Justice Department said Boeing officials had concealed information about
changes to an automated flight control system, known as MCAS, which
investigations have tied to the crashes in Indonesia and Ethiopia in 2018
and 2019.

 

The decision meant that pilot training manuals lacked information about the
system, which overrode pilot commands based on faulty data, forcing the
planes to nosedive shortly after take-off.

 

Boeing did not co-operate with investigators for six months, the DOJ said.

 

"The tragic crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302
exposed fraudulent and deceptive conduct by employees of one of the world's
leading commercial airplane manufacturers," said Acting Assistant Attorney
General David Burns.

 

"Boeing's employees chose the path of profit over candour by concealing
material information from the FAA concerning the operation of its 737 Max
airplane and engaging in an effort to cover up their deception."

 

Under the terms of the agreement, Boeing was charged with one count of
conspiracy to defraud the US, which will be dismissed after three years if
the firm continues to comply with the deal.

 

Of the total settlement, the majority - $1.77bn, some of which has already
been paid - is due to go the firm's airline customers, who were affected by
the grounding of the planes following the crashes.

 

The firm also agreed to pay a penalty of $243.6m.

 

But attorneys for the victims of the Ethiopian Airlines crash said the deal
on Thursday would not end their pending civil lawsuit against Boeing.

 

"The allegations in the deferred prosecution agreement are just the tip of
the iceberg of Boeing's wrongdoing — a corporation that pays billions of
dollars to avoid criminal liability while stonewalling and fighting the
families in court," said a statement from the group of lawyers representing
them.

 

They added that the FAA "should not have allowed the 737 Max to return to
service until all of the airplane's deficiencies are addressed and it has
undergone transparent and independent safety reviews."

 

Boeing says it has now addressed concerns about the Max, while the plane
returned to service in the US in December.

 

The charge against Boeing was that its employees used "misleading
statements, half truths and omissions" to dupe the regulator charged with
maintaining the safety of US aviation.

 

In the circumstances, you could say the company got off relatively lightly.

 

It has avoided prosecution, and a large part of the settlement involves
compensation to airlines - a fair amount of which it would probably have
ended up paying anyway.

 

The company would doubtless like to use this moment to draw a line under one
of the most traumatic episodes in its history.

 

Yet while the 737 Max is back in the air, the scrutiny of Boeing and the FAA
is unlikely to stop here.

 

Critics, including victims' families, lawyers and politicians, insist
serious questions about the aircraft remain - and they're still pushing for
answers.--BBC

 

 

 

Tesla's stock market value tops Facebook's in huge trading

(Reuters) - Shares of Tesla surged to a record high in heavy trading on
Thursday, with the electric car maker’s stock market value exceeding
Facebook’s for the first time.

 

Shares in the company led by Elon Musk jumped nearly 8% to end the session
at $816, putting its market capitalization at $774 billion and making it
Wall Street’s fifth-most-valuable company, just behind Google-parent
Alphabet and ahead of Facebook.

 

Facebook’s stock market value was $765 billion after its shares rose about
2%, according to Refinitiv data.

 

Over $39 billion worth of Tesla’s shares were bought and sold during the
session, a record for Tesla and more than the next three most traded
companies combined, which were Apple , Alibaba Group Holding and Amazon.com.

 

Tesla, up over 700% in the past 12 months, has become the most valuable auto
company in the world by far, despite production that is a fraction of rivals
such as Toyota Motor, Volkswagen and General Motors.

 

Musk surpassed Amazon’s Jeff Bezos to become the world’s richest person,
Bloomberg News reported on Thursday.

 

Tesla’s latest lift came after RBC raised its rating on the stock to “sector
perform” from “underperform.”

 

RBC analyst Joseph Spak said in his research note that he previously
underestimated Tesla’s ability to use its soaring stock price to raise
capital to fund the company’s expansion.

 

“We took a fresh look at the growth opportunity, what we got wrong about
TSLA’s positioning and the valuation and conclude that the stock price
itself is likely to be somewhat self-fulfilling to TSLA’s growth and
strategy,” Spak wrote.

 

Analysts, on average, expect Tesla to report $1.2 billion in net profits for
2020, compared with $5.8 billion in net profits expected from GM and $27.1
billion in net profits expected from Facebook, according to Refinitiv.

 

 

 

Asian stocks hit fresh records on hopes for global recovery

SHANGHAI/NEW YORK (Reuters) -Asian shares rose to record highs on Friday,
with Japan’s Nikkei hitting a three-decade peak as investors looked beyond
rising coronavirus cases and political unrest in the United States to focus
on hopes for an economic recovery later in the year.

 

The upbeat mood came after Wall Street hit record highs on Thursday while
bond prices fell as markets bet a new Democratic-controlled government would
lead to heavy spending and borrowing to support the U.S. economic recovery.

 

“Market participants are fairly optimistic with how things are progressing,
whether it’s in the political landscape, particularly of course in the
United States the potential for more stimulus certainly is a boon to the
economy,” said James Tao, analyst at CommSec in Sydney. “You’ve got the
vaccines now coming through, getting the approvals - it’s all happening
pretty quickly,” he added.

 

The buoyant mood lifted MSCI’s broadest index of Asia-Pacific shares outside
Japan up 1%, touching a record high.

 

Seoul’s Kospi led the way, charging 2.8% higher, also to a record high. In
Tokyo, the Nikkei added 1.73%, hitting its highest level since August 1990.

 

Hong Kong’s Hang Seng rose 1.2% despite reports the Trump administration was
considering banning U.S. entities from investing in an expanded list of
Chinese companies in the waning days of the presidency, and despite the
delisting of major Chinese telecoms firms from FTSE Russell and MSCI
indexes.

 

Chinese blue-chip shares were flat after recent gains and Australia’s
S&P/ASX 200 rose only 0.48% after the state of Queensland enforced a
three-day lockdown in its capital Brisbane following the discovery of a case
of the more contagious UK variant of COVID-19.

 

On Thursday, the Dow Jones Industrial Average rose 0.69%, the S&P 500 gained
1.48% and the Nasdaq Composite added 2.56% - with all three indexes
finishing at record closing highs.

 

The gains follow expectations that Democratic control of both U.S. houses of
Congress will help the party of President-elect Joe Biden push through
larger fiscal stimulus and comes despite political unrest in Washington DC.

 

U.S. government officials have begun weighing removing President Donald
Trump from office before Biden’s inauguration date of Jan. 20, after Trump
supporters stormed the U.S. Capitol building.

 

Rising risk appetite weighed on bonds, pushing benchmark U.S. yields higher.
Ten-year notes yielded 1.0998% on Friday, up from 1.017% on Thursday. The
30-year bond yielded 1.8817%, up from 1.845% Thursday.

 

The dollar also strengthened on hopes of a meaningful economic recovery
later this year.

 

The dollar index edged up against a basket of currencies to 89.875 with the
euro down 0.11% to $1.2256.

 

The greenback was up by a hair against the yen to 103.84.

 

“We’re sure to see a synchronised global recovery in the second half of this
year,” said ING analyst Carsten Brzeski.

 

“Right now, there’s lots of concern about the virus and noise surrounding
the vaccine. But we need to take a slightly longer view.”

 

Cryptocurrency bitcoin fared less well, dropping more than 5% to $37,377
after topping $40,000 for the first time on Thursday on high demand from
institutional and retail investors. Market watchers have said a pullback is
likely following its recent run-up.

 

In commodity markets, oil traders continued to focus on Saudi Arabia’s
pledge to deepen production cuts.

 

Brent crude was up 0.39% at $54.59 a barrel after touching $54.90, a high
not seen since before the first COVID-19 lockdowns in the West. U.S. West
Texas Intermediate (WTI) rose 0.45% to $51.06.

 

Spot gold was about 0.1% lower at $1,910.87 per ounce.

 

 

 

Chinese bargain hunters pile into stocks blacklisted by Trump

SHANGHAI (Reuters) - As U.S. investors dump shares in Chinese companies
blacklisted by outgoing President Donald Trump, bargain hunters in China are
taking the opposite side of that trade, wagering that a Joe Biden presidency
will reverse the investment ban.

 

Trump signed an executive order on Nov. 12 that bars U.S. securities
investment in Chinese companies allegedly owned or controlled by the Chinese
military.

 

The outgoing U.S. president is considering expanding that blacklist of 35
firms to include Alibaba and Tencent.

 

As U.S. investors rush to sell shares in the sanctioned companies and their
subsidiaries before the executive order takes effect on Jan. 11, Chinese
investors are swooping in.

 

Since the order was announced, holdings by mainland Chinese in the Hong
Kong-listed shares of China Railway Construction Corp (CRCC) and CNOOC Ltd
via the China-Hong Kong Connect roughly tripled, according to bourse
operator Hong Kong Exchanges and Clearing Ltd.

 

Other blacklisted stocks, including railway equipment maker CRRC Corp, China
Communications Construction Co and semiconductor giant SMIC also witnessed
heavy money inflows.

 

Zhu Haifeng, a veteran Chinese retail investor, said he bargain hunted in
CNOOC and CRRC, which both had lost as much as 27% since the Trump order.

 

“They are globally-competitive companies, and are China’s ‘name cards’,”
said Zhu, who sees limited impact on the companies’ fundamentals from the
U.S. sanctions.

 

Wan Chengshui, portfolio manager at Hangzhou-based Golden Eagle Fund
Management Co, said he plans to increase his holdings in Tencent, if prices
fall further.

 

“Trump politicized everything in the name of national security. When Biden
takes office, I think things will take a turn for the better,” said Wan,
predicting Trump’s executive order will be nullified, and sanctions against
Tencent and Alibaba won’t materialize.

 

Wan is not alone.

 

 

When Tencent slumped nearly 5% in Hong Kong following news of the potential
blacklisting on Thursday, Chinese investors ploughed a net HK$4.6 billion
($593.29 million) into its shares via a cross-border trading channel, making
it the most actively-traded stock under the scheme that day.

 

Global index publishers MSCI, FTSE Russell and S&P Dow Jones Index have all
scrambled to delete the blacklisted securities from their global benchmarks,
forcing passive investors to shed those holdings.

 

Phillip Wool, head of investment solutions at Rayliant Global Advisors, said
investors could find bargains as active investors dump shares to front-run
passive outflows.

 

“Non-U.S. investors will look at prices of those stocks falling and, at some
point, decide it’s a buying opportunity,” Wool said.

 

Meanwhile, uncertainty lingers around the scope and implications of Trump’s
executive order, while the gradual expansion of the list is another guessing
game, Wool said.

 

Therefore “there’s also a potential opportunity for active investors in
terms of outguessing the rest of the market as to how the political
situation is going to unfold.”

 

After making U-turns twice this month on the issue, the New York Stock
Exchange on Wednesday said it will delist three Chinese telecom companies.

 

Since NYSE’s first delisting announcement on Jan 1, Chinese investors have
been adamant buyers. Mainland holdings under Connect in China Mobile Ltd,
China Telecom Corp Ltd and China Unicom Hong Kong Ltd, have jumped 37%, 28%
and 41%, respectively.

 

($1 = 7.7534 Hong Kong dollars)

 

 

Nigerian Govt Directs Reversal of Electricity Tariff Adjustment

The minister said reports that electricity tariff had been increased by 50
per cent are inaccurate.

 

The Minister of Power, Saleh Mamman, has directed the Nigerian Electricity
Regulatory Commission (NERC) to inform all Electricity Distribution
Companies(DISCOs) to revert to tariffs that were applicable in Dec. 2020.

 

Aaron Artimas, Senior Special Adviser, Media and Communications to the
Minister of Power, made this known in a statement in Abuja on Thursday.

 

He said the reversal to the old tariff was to promote a constructive
conclusion of the dialogue with the Labour Centres (through the Joint Ad-Hoc
Committee).

 

"I have directed NERC to inform all DISCOs that they should revert to the
tariffs that were applicable in December 2020 until the end of January 2021
when the FGN and Labour committee work will be concluded.

"This will allow for the outcome of all resolutions from the Committee to be
implemented together," he said.

 

The minister spoke against the backdrop of the report that electricity
tariff had been increased by 50 per cent.

 

"I would like to affirm that these reports are inaccurate and false. It is
unfortunate that these reports have led to confusion with the public.

 

"On the contrary, government continues to fully subsidise 55 per cent of
on-grid consumers in bands D and E and maintain the lifeline tariff for the
poor and underprivileged.

 

"Those citizens have experienced no changes to tariff rates from what they
have paid historically, aside from the recent minor inflation and forex
adjustment. Partial subsidies were also applied for bands A, B and C in
October 2020," he said.

 

Mr Mamman said these measures were all aimed at cushioning the effects of
the pandemic while providing more targeted interventions for citizens.

He said the public was aware that the Federal Government and the Labour
Centres had been engaged in positive discussions about the electricity
sector through a Joint Ad-hoc Committee.

 

He said that the committee was led by Festus Keyamo, Minister of State for
Labour and Productivity and Co-Chaired by the Minister of State for Power,
Goddy Jedy-Agba.

 

According to him, progress has been made in these deliberations which are
set to be concluded at the end of January.

 

"Some of the achievements of this deliberation with Labour are the
accelerated rollout of the National Mass Metering Plan and clampdowns on
estimated billing.

 

"Improved monitoring of the Service-Based Tariff and the reduction in tariff
rates for bands A to C in October 2020 (that were funded by a creative use
of taxes)," he said.

The minister stated that it should be cleared that the regulator must be
allowed to perform its function without undue interference.

 

He said that the role of the Government was not to set tariffs, but to
provide policy guidance and an enabling environment for the regulator to
protect consumers and for investors to engage directly with consumers.

 

According to him, Bi-Annual Minor reviews to adjust factors such as
inflation are part of the process for a sustainable and investable Nigeria
Electricity Supply Industry (NESI)

 

He also stated that the regulator must be commended for implementing the
subsisting regulations while putting in place extensive actions to minimise
the adverse impact on end-user tariffs.

 

"The administration is committed to creating a sustainable, growing and
rules-based electricity market for the benefit of all Nigerians.

 

"The administration and the Ministry of Power will also continue to devise
means to provide support for vulnerable Nigerians while ensuring we have a
sustainable NESI," he said. (NAN)-Premium Times.

 

 

Liberians in U.S. Launch Investment Group to Invest in Liberia's Health,
Real Estate, and Agriculture Sector

Monrovia — Dr. Stella Jefferies is a Liberian who works as a healthcare
provider in the United States. She is also the CEO of Lib Investments Group,
LLC (LIG) which is registered in the United States and also in Liberia. The
company currently has 10 investors and looking for more partners both
domestically and internationally.

 

The company is a premier provider of investment services that contributes to
the revitalization of Liberia and creating sustainable communities globally.
The company provides an avenue for investors to prepare financially for
their future while investing in communities in need.

 

The company creates a portfolio of investment choices that can transcend
generations and contribute to the general welfare of Liberia and similar
communities internationally.

 

Lib Investments Group, LLC (LIG is currently being managed by Golden Touch
Corporation, business facilitation company, that provides a range of
services for domestic and international companies wanting to trade but don't
know how , or wanting to have ease in operations and functionality in
Liberia.

 

In an exclusive Interview with FrontPageAfrica on Wednesday Dr. Jefferies
stressed the need for what she called a Liberian diaspora partnership with
the Liberians at home to invest in their country. "No one, absolutely no
one, loves Liberia more than Liberians. Other nationalities are investing in
their countries, look at the Ghanaians, and look at Rwanda. So, it's time to
put away all the rhetoric and focus on investing in the
country.-FrontPageAfrica.

 

 

 

Africa: Elon Musk Is World's Richest Man - Dangote Still Africa's Wealthiest

Musk recently overtook Bill Gates to become the second-richest person in the
world.

 

Tesla CEO, Elon Musk, on Thursday displaced Amazon's chief executive, Jeff
Bezos, as the world's richest person just as Nigeria's Aliko Dangote,
maintained his spot as Africa's richest man.

 

Despite his recent dating scandal nonetheless, Dangote remains Africa's
richest man and the richest black man in the world for nine years in a row,
with a net worth of more than $10 billion.

 

Musk, 49, overtook Bill Gates in November, 2020, to become the
second-richest person in the world.

 

The news comes as Tesla shares continue to surge in 2021.

 

Bloomberg's Billionaires Index, a ranking of the world's 500 wealthiest
people, estimated Musk's net worth at $181 billion on Wednesday, about $3
billion behind Bezos.

 

Musk, who was born to a Canadian mother and South African father and raised
in Pretoria, responded to the news on Twitter, tweeting "how strange" and
that it was time to get "back to work."

The wealth estimates are largely based on Musk and Bezos' stock holdings in
Tesla and Amazon, respectively.

 

Musk also pinned a 2018 tweet of his to his account wherein he noted that
half of his earnings is "to help problems on Earth and the other half will
go towards establishing a self-sustaining city on Mars".

 

Bloomberg said the South Africa-born engineer's net worth was "$188.5
billion at 10:15 a.m. in New York, $1.5 billion more than Bezos, who has
held the top spot since October 2017".

 

As chief executive officer of Space Exploration Technologies Corp., or
SpaceX, Musk is also a rival to Bezos, owner of Blue Origin LLC, in the
private space race. Musk recently welcomed a child with his lover, Canadian
singer, Grimes.

 

According to Bloomberg, Bezos would still have retained his position had it
not been for his divorce, which saw him cede about a quarter of his Amazon
stake to his ex-wife, MacKenzie Scott.

 

Bezos and Scott divorced in 2019 after the Amazon founder disclosed he was
having an affair with former TV anchor, Lauren Sánchez.

 

Scott walked away the biggest settlement ever awarded in a marital split:
$38 billion in Amazon stocks.-Premium Times.

 

 

 

Tanzania: Two Chinese Companies to Construct Tanzania's Fifth Lot of SGR

Dar es Salaam — Two Chinese companies have won a tender to construct
Tanzania's fifth lot of the Standard Gauge Railway from Mwanza to Isaka
covering a distance of 341 kilometers.

 

This was said by Tanzania's foreign minister Prof Palamagamba Kabudi at news
briefing in Chato on the eve of the Chinese foreign minister Wang Yi's
two-day visit to Tanzania.

 

According to him the construction which will cost Sh3 trillion will be
handled by China Civil Engineering Construction (CCEC) and China Railway
Construction Company (CRCC).

 

The government through the Tanzania Railway Corporation (TRC) is
constructing a 2,561-kilometer SGR network that links Dar es Salaam, Mwanza,
Kigoma, Katavi and neighboring countries of Rwanda, Burundi Uganda and DRC.

 

The over Sh7 trillion project is being implemented in phases with the first
round covering 202km between Dar es Salaam and Morogoro, was initially
scheduled to be ready by November 2020 but heavy rains disrupted
construction works.

 

Construction of the first and the second phase is being undertaken by
Turkish construction company, Yapi Markez.-Citizen.

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


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.

 


 

 


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