Major International Business Headlines Brief::: 14 July 2021

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Major International Business Headlines Brief::: 14 July 2021

 


 

 


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

 


 

 


ü  US warns businesses over China's Xinjiang province

ü  Zomato: India food delivery unicorn opens $1.2bn IPO

ü  Price rises speed up again as economy unlocks

ü  Inflation: Used cars and food push US prices higher

ü  McDonald's owners offer childcare to attract staff

ü  Carry on flying, says government green plan

ü  Covid passes for nightclubs branded unworkable

ü  Asian shares lower on U.S. inflation jitters

ü  British watchdog clears AstraZeneca's $39 billion buyout of Alexion

ü  U.S. consumer prices post largest gain in 13 years; inflation has likely
peaked

ü  UK inflation surges to 2.5%, highest in nearly 3 years

ü  Japan's Q3 growth forecast cut as new pandemic curbs hit: Reuters poll

ü  Nigeria Loses $26.3bn to Oil Theft, Other Crimes Annually - Buhari

ü  South Africa: Several Taxi Drivers Shot As Authorities Try to Contain
Violence and Brace for Unrest in Cape Town

ü  Mozambique: Bank of Mozambique Fines Standard Bank for Fraudulent
Practices

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

US warns businesses over China's Xinjiang province

The US has issued a tough new warning to companies about doing business in
China's Xinjiang province.

 

American firms that still have supply chain and investment ties in the
region were told they "could run a high risk of violating US law."

 

Washington cited evidence of genocide and other human rights abuses in
Xinjiang.

 

China has denied previous allegations that the region's Uyghur population
has been subjected to human rights abuses.

 

The Xinjiang Supply Chain Business Advisory was published jointly by the
State Department, Treasury, Commerce, Homeland Security, Labor and the
Office of the US Trade Representative.

 

"Businesses and individuals that do not exit supply chains, ventures, and/or
investments connected to Xinjiang could run a high risk of violating US
law," said the updated advisory, which was first released in July last year.

 

In a press statement, Secretary of State Antony Blinken said the document
noted that the Chinese "government is perpetrating genocide and crimes
against humanity in Xinjiang".

 

The announcement comes as Western governments harden their stance over
companies operating in the north-western region of China.

 

On Friday, the Biden administration added 14 Chinese firms and other
entities to its economic blacklist over alleged human rights abuses and
surveillance in Xinjiang.

 

Earlier this month, French authorities opened "crimes against humanity"
probe into four fashion brands.

 

Uniqlo, Zara-owner Inditex and French textile firm SMCP deny the claims,
while Skechers declined to comment.

 

The move came after complaints from the European Uyghur Institute and other
pressure groups that the retailers were profiting from the use of forced
labour.

 

The Xinjiang region produces 85% of China's cotton and accounts for about a
fifth of global supplies.

 

Uyghurs have been detained at camps where allegations of torture, forced
labour and sexual abuse have emerged. China has denied these claims saying
the camps are "re-education" facilities aimed at lifting Uyghurs out of
poverty.--BBC

 

 

 

Zomato: India food delivery unicorn opens $1.2bn IPO

Food delivery app Zomato, one of India's biggest tech start-ups, has gone on
sale with a $1.2bn (£870m) initial public offering or IPO.

 

It raised $562.3m from institutional investors - they bid for 35 times more
shares than allotted to them - ahead of the much-awaited offering.

 

But analysts are wary of the loss-making company's high valuation.

 

Zomato, backed by Jack Ma's Ant Group, is the first of India's major digital
start-ups to issue an IPO.

 

And more are expected. India has been throwing up unicorns, private firms
valued at over $1bn (74.5 billion rupees), at a fast pace and many of them,
such as mobile payments app, Paytm and retail firm, Nykaa, are expected to
make a stock market debut in the coming months.

 

Zomato's three-day offering - with shares priced between 72 to 76 rupees per
share - is expected to take the company's valuation to $9 billion. Trading
in the stock is likely to begin on 27 July.

 

The IPO comes at a time when Indian and global markets are on a remarkable
high. But India's economy has been faltering from sluggish growth and rising
unemployment, raising fears of a bubble that could be bolstered further by
over-valued tech companies going public.

 

Launched in 2008 by Deepinder Goyal, Zomato offers food delivery and curates
restaurant reviews. It's available in 525 cities and caters to some 6.8
million customers every month - and has become a household name in India.

 

The pandemic and intermittent lockdowns that have been imposed across India
to contain it have hit Zomato's business - its revenue for the financial
year ending March 2021 was down by 23.4% from the previous year.--BBC

 

 

 

Price rises speed up again as economy unlocks

The UK inflation rate hit 2.5% in the year to June, the highest for nearly
three years, as the unlocking of the UK economy continued.

 

The Consumer Prices Index measure of inflation rose from 2.1% in May, the
Office for National Statistics said, driven by higher food and fuel costs.

 

The rate is higher than the Bank of England's 2% inflation target for a
second month.

 

That will fuel the debate about whether interest rates need to go up.

 

What is inflation?

Simply put, inflation is the rate at which prices are rising - if the cost
of a £1 jar of jam rises by 5p, then jam inflation is 5%.

 

It applies to services too, like having your nails done or getting your car
valeted.

 

You may not notice low levels of inflation from month to month, but in the
long term, these price rises can have a big impact on how much you can buy
with your money.

 

As well as food from shops, eating and drinking out also cost more, while
clothing and footwear, usually cheaper at this time of year, went up in
price instead.

 

Second-hand car prices rose between May and June this year, whereas in
recent years, they have fallen between these months, the ONS said.

 

Some buyers were reported to have turned to the used car market as a result
of delays in the supply of new cars caused by the shortage of semiconductor
chips used in their production.

 

inflation

June's reading was above most economists' forecasts of an increase of about
2.2%.

 

ONS deputy national statistician for economic statistics Jonathan Athow
said: "The rise was widespread, for example coming from price increases for
food and for second-hand cars, where there are reports of increased demand.

 

"Some of the increase is from temporary effects, for example, rising fuel
prices which continue to increase inflation, but much of this is due to
prices recovering from lows earlier in the pandemic.

 

"An increase in prices for clothing and footwear, compared with the normal
seasonal pattern of summer sales, also added to the upward pressure this
month."

 

by sector

The latest rise in the inflation rate will add to pressure on the Bank of
England to consider increasing interest rates to cool the economy.

 

The Bank's rate-setting Monetary Policy Committee (MPC) has taken the view
that the current inflation surge is "transitory" and will fall back after
peaking at 3%.

 

But the Bank's departing chief economist, Andy Haldane, warned last month
that the risk of high inflation was "rising fast" and could reach nearly 4%
this year.

 

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, sided with the
MPC majority view that inflation was likely to reach 3%, but not much
higher.

 

Interest rates would therefore remain at the current record low of 0.1%
"throughout next year", he said.

 

Inflation would "ease quickly in 2022", returning to the Bank's 2% target
"in the second half of next year", he forecast.-BBC

 

 

Inflation: Used cars and food push US prices higher

Prices in the US spiked again in June, driven higher by the cost of used
cars and food increasing.

 

Consumer prices jumped 5.4% in the 12 months to the end of June, up from 5%
the previous month.

 

It marks the biggest 12-month increase since August 2008, according to the
US Labor Department.

 

Inflation, which measures the rate at which cost of living increases, has
been rising as the economy reopens from coronavirus lockdowns.

 

It has sparked fears that prices are increasing too quickly, which could
prompt the Federal Reserve to push up interest rates or pull back on
pandemic support earlier than expected.

 

The figures released on Tuesday were higher than analysts' expectations.

 

Fed warns the path of the economy depends on Covid

However, some economists and the Federal Reserve say that the inflationary
pressures will be temporary.

 

Used vehicles accounted for one-third of the increase in the Consumer Price
Index (CPI) in June, the Labor Department said on Tuesday.

 

But prices also reflected a broader surge in consumer demand as restrictions
eased, with the costs of meals in restaurants and cafes, hotel stays and
airline tickets all rising last month.

 

What is inflation?

Inflation is the rate at which the prices for goods and services increase.

 

It's one of the key measures of financial well-being because it affects what
consumers can buy for their money. If there is inflation, money doesn't go
as far.

 

It's expressed as a percentage increase or decrease in prices over time. For
example, if the inflation rate for the cost of a litre of petrol is 2% a
year, motorists need to spend 2% more at the pump than 12 months earlier.

 

And if wages don't keep up with inflation, purchasing power and the standard
of living falls.

 

Stripping out the costs of energy and food, which can be more volatile, the
"core" CPI surged 4.5% on a year-on-year basis.

 

The price gains were "widespread as unleashed pent-up demand outstrips
diminished supply," said Kathy Bostjancic of Oxford Economics.

 

"We believe this will be the peak in the annual rate of inflation," she
added.

 

Experts also pointed out that prices could also be rising because of
temporary factors such as supply chain bottlenecks and a global shortage of
semi-conductors as production ramps up.

 

John Leiper, chief investment officer at Tavistock Wealth, said the the jump
in reported inflation was largely down to "commodity and wholesale price
increases" and "reopening-related bottle necks".

 

But he said that once these pressures were resolved, inflation should drift
back downwards.

 

Inflation is currently breaching the Federal Reserve's target of 2%, raising
fears among investors it might need to put up interest rates more quickly
than had been expected to cool things down.

 

Federal Reserve chair Jerome Powell has insisted that price increases are
down to higher demand as the economy reopens, but has recently acknowledged
there may be some risk of longer-term increases.

 

Minutes of recent central bank meetings released last week showed that most
of its officials feel it needs to be prepared to act if those risks come
about.

 

Kristalina Georgieva, the managing director of the International Monetary
Fund also warned last week that rising inflation could last longer than
expected.

 

To those of us who can remember the 1970s and early 1980s, 5.4% might not
sound that bad. US CPI inflation was close to 15% at one point and in
Britain the peak was almost 27%.

 

But since then we have become accustomed to much more moderate price rises.
People prefer it that way and sustained inflation of 5% or more is
considered a problem in many countries, including the US.

 

For the US Federal Reserve, the central question is whether it will be
sustained.

 

Certainly there's a strong contribution from what are called "base effects".
Energy prices were driven lower a year ago by the pandemic, but have
returned to more normal levels now. The new figures show petrol up by 45%.
So was the price of used cars and trucks. Increases on that scale will not
be sustained.

 

But disruptions to supply and people using the money they may have been
unable to spend could keep the inflationary pressure up for a while. So far,
however, Fed officials have suggested they expect it to be transitory, with
inflation likely to be close to their target (2%, though for a different
price index) next year and beyond.-BBC

 

 

 

McDonald's owners offer childcare to attract staff

McDonald's restaurants will offer higher hourly wages and help with
education costs to attract workers as Covid restrictions ease in the US.

 

McDonald's is one of the many hospitality businesses that laid off staff
during the pandemic but has since struggled to hire as America opens up.

 

The majority of its restaurants are owned by franchisees, who are offering
the benefits, with some help from McDonald's, which owns the brand.

 

It said it was responding to feedback.

 

The new plan, or "Employee Value Proposition" - which is intended to improve
the experience of working at McDonald's restaurants - is based on the
responses of 5,000 its workers and managers.

 

Franchisees own about 93% of the 38,000 McDonald's restaurants worldwide.
And some of those restaurant owners in the US will pilot new perks that
include the provision of emergency child-care if employees are called in at
the last minute.

 

As first reported by the Wall Street Journal, franchisees started looking at
the pay and benefits they offer their US workers last year.

 

Owners agreed in June to boost pay and benefits and the plan has since been
endorsed by the National Franchise Leadership Alliance (NFLA) - a body which
represents thousands of US franchisees.

 

Individual restaurants are now adopting it. They include one franchise owner
in Colorado who is spending more than seven figures on wage and benefit
increases, according to the burger giant.

 

'Competitive hiring environment'

David Costa of the NFLA said it would help McDonald's and its franchisees
"remain employers of choice in today's increasingly competitive hiring
environment".

 

McDonald's in May announced it would also increase wages at its
company-owned restaurants to an average of $15 per hour by 2024. That
followed significant pressure from campaign groups such as 'Fight for 15'.

 

Other fast food chains in the US, including Chipotle, have introduced higher
hourly rates. Meanwhile, some Burger King restaurants are offering sign-on
bonuses as a sweetener for new recruits.

 

Surveys have suggested that some people are hesitant to re-enter the
workforce because of healthcare risks, child-care issues and unemployment
benefits.

 

Under the $1.9tn coronavirus rescue package that President Joe Biden signed
into law in March, some workers can get a $300 weekly supplemental benefit
if they are out of a job.

 

But at least 25 states opted to cut that unemployment benefit prematurely,
so people are not persuaded to stay at home.

 

As part of its decision on when and how to tackle the rising cost of living,
the Federal Reserve is monitoring unemployment and wage increases as supply
in the labour market remains tight.

 

But Fed chair Jerome Powell has played down worries, saying that rising
costs reflect "transitory factors" as the economy reopens and that it was
important to continue support as the recovery from the Covid crisis is still
underway.

 

"The economic downturn has not fallen equally on all Americans, and those
least able to shoulder the burden have been hardest hit," he said in
June.-BBC

 

 

 

Carry on flying, says government green plan

Carry on flying, the government has told the British public, in its plan to
reduce transport emissions to virtually zero by 2050.

 

Ministers say new technology will allow domestic flights to be
emissions-free by 2040, and international aviation to be zero carbon by mid
century.

 

The policy has been ridiculed by environmentalists who say the government is
putting far too much faith in innovation.

 

They say demand for flying and driving must be curbed if the UK is to meet
its ambitious climate targets.

 

The aviation proposal is contained in the government’s "Transport
Decarbonisation Strategy" - part of its master plan for the entire economy
to be virtually zero carbon by mid century.

 

When Boris Johnson hosts the Glasgow climate summit in November, he'll need
policies in place to prove to other nations how carbon cuts can be achieved.

 

 

Lorries to be zero-carbon by 2040

The transport plan says all new lorries will be zero-carbon by 2040, running
on batteries or hydrogen under a world-leading UK policy.

 

A recent study showed that trucks accounted for 2% of vehicles in the EU but
22% of road transport emissions.

 

The plan says petrol and diesel cars will become more efficient within the
decade, and manufacturers will face targets for the electric vehicles they
sell.

 

Electric cars will have smart charging that interacts with the power grid
enabling drivers to top up when there’s plenty of cheap renewable energy.

 

Critics say that while the strategy is ambitious in some respects, it is not
credible overall. They blame the government for continuing polluting
activities such as:

 

The critics say the strategy won’t reduce emissions fast enough - especially
in the light of the extraordinary US heatwaves, which have prompted fears
that dangerous climate shifts may already be underway.

 

Transport is the UK’s biggest emissions source and the Department for
Transport has been criticised for doing too little to reduce CO2.

 

That’s partly because so many transport issues involve difficult political
choices, with ministers fearing public resistance.

 

The Transport Secretary Grant Shapps said: “Decarbonisation is not about
stopping people doing things, it’s about doing the same things differently."

 

A former pilot, Mr Shapps added that the plan will mean using sustainable
fuel for aircraft and more zero-emission cars.

 

The government has also been discussing a proposal to work with employers on
“Commute Zero” - a project which could encourage more lift-sharing and
working from home.

 

Ministers have also agreed that the whole central government fleet of 40,000
cars and vans should be fully zero-emission by 2027.

 

Edmund King, AA president, broadly backed the strategy and said that drivers
"do care about decarbonisation".

 

“Even by 2027 it is estimated that electric cars will outsell new petrol and
diesel cars,” Mr King added.

 

But it looks as though difficult issues have been kicked down the road.

 

Some aviation experts, for instance, are not convinced that long-haul planes
can be cleaned up by 2050.

 

The advisory Climate Change Committee has warned that aviation growth must
be curtailed because emissions need to be cut before that date – not after.

 

Greg Archer, from the green group Transport and Environment, said: “The
government must level with the public that to avoid dangerous climate change
there will have to be fewer cars, less driving and many fewer flights.”

 

'We need coherent steps'

Chris Todd from Transport Action Network said: "We need coherent steps not
contradictory actions."

 

Mr Todd added that "after decades of dither and delay" in cutting transport
emissions, the Department for Transport "remains unable to face up to the
facts or take hard choices".

 

Building bigger roads for bigger cars - even if they are electric - still
has a "major carbon cost for construction and manufacturing," he said.

 

One hard choice is how to raise tax when the car fleet shifts to
electricity.

 

It’s not clear yet how the Treasury will fill the looming hole in its
coffers when it loses more than £30bn a year currently collected through
fuel taxes on conventional cars.

 

A pay-as-you-drive tax has been rumoured, but a spokeswoman told BBC News:
“At present we have no intention to introduce road pricing."

 

As we transition to decarbonised motoring, the spokeswoman said the
government will need to ensure revenue from motoring taxes keeps pace with
the change to continually fund public services and infrastructure.

 

She also said there were no plans for a frequent flyer levy. She continued:
“We will continue to work across government and with industry, through the
Jet Zero Council and other forums, to ensure delivery of Jet Zero (zero
emissions from aviation) remains on track.”

 

The spokeswoman said government plans will build on the significant increase
in the number of people cycling during the pandemic.

 

The strategy would set out a comprehensive, long-term vision to increase
active travel and embed the benefits of walking and cycling.

 

'Barely worth the wait'

Kerry McCarthy MP, Labour’s Shadow Minister said: “This plan has been a long
time coming, but it was barely worth the wait."

 

"The government is still stalling when it comes to the tough decisions
needed," she added, citing the rise in rail fares and the cut in plug-in car
grants.

 

“At a time when we should be showing global leadership and pressing ahead
with this agenda, it's clear ministers still have a long way to go.”

 

Where transport policy is devolved, the plan applies just to England only.
Where policy is reserved, this will apply to the UK as a whole and the UK
government will consult with the UK nations.-BBC

 

 

Covid passes for nightclubs branded unworkable

Government guidance urging nightclubs to make their customers show Covid
passports has been branded unfair and unworkable by those running them.

 

Venues have been advised to ask for the NHS Covid pass or a negative test
result when they reopen on 19 July.

 

But operators said not making the move mandatory was passing the buck.

 

And the Night Time Industries Association called it "disingenuous and
unclear", questioning how voluntary it really was.

 

Michael Kill, who runs the association, told the BBC he had received
inquiries from members seeking clarification.

 

Mr Kill said that although the policy was not mandatory at present, it could
turn out that venues were "in the hands of local public health directors"
who could force them to comply.

 

The government has also said it "reserves the right" to force venues to
require people to show their Covid passport or proof of a negative Covid
test in order to be allowed in.

 

Mr Kill said the government seemed to be "gauging the public narrative"
before deciding how tough to be, adding that this was likely to cause "some
level of chaos".

 

He accused the government of replacing the old clubland mantra of "Rave,
sleep, repeat" with "Leak, listen, then release".

 

The government declined to comment on Mr Kill's remarks.

 

Nightclubs advised to ask for Covid passes

One major nightclub firm, Rekom UK, which owns 42 venues including chains
Pryzm, Bar&Beyond, Eden and Fiction, said on Monday it would not be asking
for Covid passports.

 

Its chief executive, Peter Marks, told the Press Association news agency his
clubs would be reopening "at full capacity and without any requirement for a
negative Covid test".

 

However, he declined to comment when contacted by the BBC on Tuesday.

 

Passing the buck

Other nightclub operators contacted by the BBC expressed frustration at what
they saw as the government making them bear all the responsibility.

 

Tristan Moffat, operations director of the Piano Works, which has two London
venues and will not be asking to see Covid passports, said: "It's like we've
been given a rope to hang ourselves with.

 

"If it all goes wrong, we'll be closed down again and the buck will be
passed back to the operators."

 

Mr Moffat said the change of date for the lifting of restrictions, from 21
June to 19 July, had cost his firm £250,000 in lost profit and trading
losses incurred, compared with the same four-week period in 2019.

 

He added that 90% of their customers were aged 20 to 35, precisely those who
had not had the chance to be fully vaccinated.

 

"In an already nervous environment, this just adds another layer of fear and
nervousness," he said.

 

"It's not fair - the government should either mandate something or not
mandate it.

 

"They've been writing cheques of hope that we can't cash. Confidence is
slipping away and we're the ones to suffer."

 

ID checks

Another proprietor, pub owner Julie Spensley, whose son Stephen also owns a
bar and a nightclub in Middlesbrough, said it would take up to 10 times
longer to admit revellers if they had to show Covid passports.

 

She said: "Unless it's mandatory, we will not be introducing it."

 

Speaking to the BBC's Today programme, Mrs Spensley, who co-owns the Dickens
Inn with her husband Tony, said the advice was "very unworkable for venues
such as late bars and nightclubs".

 

Her son, Stephen Spensley, owns the TS One bar and Spensley's Emporium
nightclub, also in Middlesbrough.

 

"Nightclubs and late bars have queues outside and that's the way they
operate," she said.

 

Staff already had to check customers' ID to make sure they were old enough
to be let in, so imposing further checks would not be practical, she added.

 

"We've had it tough for the last 16 months," she said.

 

She stressed that she wanted people to stay safe, but questioned the wisdom
of tighter restrictions on night-time venues when the government was easing
the rules on social distancing and mask-wearing.

 

How can I get a vaccine passport?

People in England can do this by requesting an NHS Covid Pass via the NHS
website or the NHS app.

 

Once logged in, an NHS Covid Pass can be requested. The system generates a
QR code, which lasts for 28 days.

 

An NHS Covid Pass can be obtained two weeks after a second dose of the Covid
vaccine, as long as both doses were given in England.

 

A pass can be requested if you've had a negative PCR test or lateral flow
test result within the past 48 hours, which you have reported on the NHS
website. These passes last 48 hours after the test result.

 

Alternatively, a pass can be given following a positive PCR test result
within the last six months, and when self-isolating has finished. The pass
lasts for 180 days after the test result.

 

People who have had both their jabs can also request an NHS Covid Pass
letter by calling 119. This only shows vaccination status and has no expiry
date.-BBC

 

 

 

Asian shares lower on U.S. inflation jitters

(Reuters) - Asian shares fell on Wednesday after data showing the biggest
jump in U.S. inflation in 13 years fuelled some market expectations that the
Federal Reserve could exit pandemic-era stimulus earlier than previously
thought.

 

But U.S. bond yields and the dollar were lower in Asian trade after jumping
a day earlier on the inflation data.

 

The U.S. consumer price index jumped 0.9% in June, the Labor Department said
on Tuesday. That was above market expectations and the largest gain since
June 2008. read more

 

"Against the background of higher, longer U.S. inflation, a taper coming
earlier seems to be the likely direction of travel as far as policy goes,"
said Rob Carnell, ING's Asia-Pacfic head of research.

 

"The only thing that comes across as a slight salve in all of this is that
no one seems to be expecting much in terms of Fed rates. So we might be
getting sooner, but we're not getting very much."

 

The Reserve Bank of New Zealand (RBNZ) on Wednesday became the latest
central bank to plot an end to pandemic-era policy, as it surprised markets
by announcing it would end its bond purchase progamme from next week,
sending the Kiwi dollar sharply higher. read more

 

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS)
fell 0.33%, as Chinese blue-chips (.CSI300) dipped 1%, Hong Kong's Hang Seng
(.HSI) slipped 0.66% and Seoul's Kospi (.KS11) lost 0.29%.

 

Australian shares (.AXJO) were 0.34% higher on a boost from miners and
energy firms.

 

Japan's Nikkei (.N225) was down 0.2%.

 

Investors are keeping a close eye on the semi-annual testimony of Fed Chair
Jerome Powell to Congress on Wednesday and Thursday for more clues on
whether the Fed will take more aggressive steps to halt rising inflation.
Powell's testimony comes as the Biden administration continues to push for
fiscal stimulus to boost the U.S. economy.

 

Democrats on the U.S. Senate Budget Committee late on Tuesday reached an
agreement on a $3.5 trillion infrastructure investment plan that they aim to
include in a budget resolution to be debated later this summer. read more

 

Meanwhile in Asia, China is due to release second-quarter economic growth
data on Thursday even as its central bank is set to cut banks' reserve
requirements to help bolster an unbalanced economic recovery.

 

China's premier said on Tuesday that the country will keep its economic
operations within a reasonable range over the next 18 months and take
"comprehensive measures" to ease rising commodity prices.

 

On Wall Street overnight, stocks at first took the CPI data in stride,
bidding up technology stocks that typically thrive with low interest rates,
but major indexes ultimately closed lower.

 

The Dow Jones Industrial Average (.DJI) fell 0.31% to 34,888.79, the S&P 500
(.SPX) lost 0.35% to 4,369.21 and the Nasdaq Composite (.IXIC) dropped 0.38%
to 14,677.65.

 

A $24 billion auction of 30-year Treasury bonds reflected investor jitters
as they were sold to yield 2.00%, more than two basis points above where the
debt had traded before the auction.

 

Bond yields pulled back on Wednesday after jumping across the curve a day
earlier.

 

The 30-year yield edged down to 2.0302% from a close of 2.037%, while the
benchmark 10-year yield slipped to 1.3998% from a close of 1.415% on
Tuesday.

 

The policy-sensitive two-year yield was at 0.2508% from a close of 0.255%.

 

In the currency market, the safe-haven yen strengthened, with the dollar
dropping 0.13% against the Japanese unit to 110.47 . The euro rose 0.08% to
$1.1783after the greenback earlier touched a three-month high against the
single currency.

 

The dollar index , which tracks the greenback against a basket of currencies
of other major trading partners, nudged down to 92.747 after earlier rising
as high as 92.832 - just below the 92.844 level reached last week for the
first time since April 5.

 

The New Zealand dollar was 0.85% higher after the RBNZ announcement on
ending asset purchases.

 

Oil prices steadied after data showed that China's first-half crude imports
dropped 3% from January to June versus a year earlier. They surged more than
2% on Tuesday after the International Energy Agency said the market should
expect tighter supply due to disagreements among major producers. read more

 

U.S. crude dipped 0.24% to $75.07 a barrel and global benchmark Brent crude
fell 0.16% to $76.37 per barrel.

 

Spot gold rose 0.11% to $1,809.38 per ounce.

 

The Thomson Reuters Trust Principles.

 

 

 

British watchdog clears AstraZeneca's $39 billion buyout of Alexion

(Reuters) - Britain's competition regulator said on Wednesday it has cleared
AstraZeneca's (AZN.L) $39 billion buyout of U.S.-based Alexion (ALXN.O)
after it decided not to initiate a broader probe into the deal following its
initial assessment.

 

The Competition and Markets Authority began reviewing the planned takeover
in May for whether it could reduce competition in Britain or other markets.
Its clearance follows that from Europe earlier this month.

 

The Thomson Reuters Trust Principles.

 

 

 

U.S. consumer prices post largest gain in 13 years; inflation has likely
peaked

(Reuters) - U.S. consumer prices increased by the most in 13 years in June
amid supply constraints and a continued rebound in the costs of
travel-related services from pandemic-depressed levels as the economic
recovery gathered momentum.

 

With used cars and trucks accounting for more than one-third of the surge in
prices reported by the Labor Department on Tuesday, economists continued to
believe that higher inflation was transitory, aligning with Federal Reserve
Chair Jerome Powell's long-standing views.

 

The yield on the benchmark 10-year Treasury note briefly shot up before
retreating as investors concluded that the U.S. central bank would likely
maintain its ultra easy monetary policy stance for a while. Powell will
present the semiannual Monetary Policy Report to the U.S. Congress on
Wednesday.

 

"June's CPI numbers looked scary, but once again, we see that it was mainly
temporary price increases that pumped up the figures," said Robert Frick,
corporate economist with Navy Federal Credit Union in Vienna, Virginia.
"Overall, this report is consistent with inflation cooling off later this
year."

 

The consumer price index increased 0.9% last month, the largest gain since
June 2008, after advancing 0.6% in May. Economists polled by Reuters had
forecast the CPI would climb 0.5%. Used cars and trucks prices accelerated
10.5%. That was the biggest jump since January 1953 when the government
started tracking the series. Used cars and trucks have been the major driver
of inflation in recent months.

 

They surged a record 45.2% on a year-on-year basis. A global semiconductor
shortage has undercut motor vehicle production. New motor vehicle prices
also rose solidly. Demand is mostly being driven by rental companies,
desperate to restock after offloading their fleets at the height of the
pandemic. Industry data suggest used car and truck prices will soon cool
off.

 

But there are signs that inflation is spreading beyond the sectors at the
center of the economy's reopening, with consumers paying more for food,
gasoline, rents and apparel last month. That could sharpen criticism of the
very accommodative monetary and fiscal policies. COVID-19 vaccinations, low
interest rates and nearly $6 trillion in government relief since the
pandemic started in the United States in March 2020 are fueling demand,
straining the supply chain.

 

White House officials are cautiously optimistic that the current increase in
prices will be transitory, citing a continued drop in forward prices for
lumber and other goods that experienced sharp increases as a result of
supply chain bottlenecks. Steel capacity had also risen substantially over
the past few months, they said.

 

In the 12 months through June, the CPI jumped 5.4%. That was the largest
gain since August 2008 and followed a 5.0% increase in May. Excluding the
volatile food and energy components, the CPI accelerated 0.9% after
increasing 0.7% in May. The so-called core CPI surged 4.5% on a year-on-year
basis, the largest rise since November 1991, after advancing 3.8% in May.

 

Stocks on Wall Street were mixed. The dollar gained versus a basket of
currencies. Longer-dated U.S. Treasury prices rose.

 

TRANSITORY INCREASE

 

The U.S. central bank slashed its benchmark overnight interest rate to near
zero last year and is pumping money into the economy through monthly bond
purchases. It has signaled it could tolerate higher inflation for some time
to offset years in which inflation was lodged below its 2% target, a
flexible average.

 

The Fed's preferred inflation measure, the core personal consumption
expenditures price index, jumped 3.4% in May, the largest gain since April
1992. Minutes of the Fed's June 15-16 policy meeting published last week
showed "a substantial majority" of officials saw inflation risks "tilted to
the upside," and the central bank as a whole felt it needed to be prepared
to act if those risks materialized.

 

Annual inflation rates have been boosted by the dropping of last spring's
weak readings from the CPI calculation. June was likely the peak in these
so-called base effects.

 

"The fact that the recent run-up in inflation has been dominated by a few
categories should give the Fed leadership continued confidence in their view
that it is mostly a transitory increase, a view which the market apparently
shares," said Michael Feroli, chief U.S. economist at JPMorgan in New York.

 

With nearly 160 million Americans immunized, demand for travel is picking
up. Lodging away from home including hotel and motel accommodation shot up
7.9%. Prices for airline tickets rose 2.7%. Though inflation has likely
peaked, it is expected to remain elevated through part of 2022, as prices
for many travel-related services are still below pre-pandemic levels.

 

But some factors boosting inflation could last beyond next year. Rents rose
solidly in June and could soar as workers return to offices, pulling people
back to cities and other urban centers amid the subsiding pandemic in the
United States.

 

Worker shortages, even as millions of Americans are unemployed, are also
seen pushing up wages, and keeping inflation elevated. Lack of affordable
childcare is keeping some parents at home. The pandemic also forced early
retirements, reducing the labor pool.

 

"It is difficult to argue that everything will be back to normal in a few
months," said Sung Won Sohn, a finance and economics professor at Loyola
Marymount University in Los Angeles. "Rent won't remain tame once the
government restrictions on eviction are over. The housing shortages will
keep boosting rents."

 

But the course of inflation will likely be determined by consumers' and
businesses' perceptions.

 

"The big concern is that current high inflation gets built into consumers'
and businesses' expectations, leading to higher long-run inflation, as
happened in the 1970s," said Gus Faucher, chief economist at PNC Financial
in Pittsburgh, Pennsylvania. "However, the temporary nature of current
inflation pressures, and Fed watchfulness, should prevent this from
happening."

 

The Thomson Reuters Trust Principles.

 

 

 

UK inflation surges to 2.5%, highest in nearly 3 years

(Reuters) - British inflation jumped further above the Bank of England's
target in June when it hit 2.5%, its highest since August 2018 and up from
2.1% in May, putting the focus of the BoE's plan to keep its huge stimulus
programme in place.

 

Official data showed higher prices for food, fuel, second-hand cars,
clothing and footwear all pushed inflation up last month as the economy
bounced back from its lockdown slump, the Office for National Statistics
said.

 

The reading was above all forecasts from economists polled by Reuters who
mostly had expected consumer price inflation (CPI) to hit 2.2% in the 12
months to June.

 

Sterling strengthened against the U.S. dollar after the news.

 

Data published on Tuesday showed U.S. consumer prices rose by 5.4% in the 12
months to June, the most in 13 years, and the Federal Reserve has said its
top officials were poised to act if inflation risks build.

 

Britain's CPI broke above the BoE's 2% target for the first time in almost
two years in May, but its rise is expected to be much less sharp than in the
United States.

 

The BoE has said inflation will peak above 3% as Britain before falling
back.

 

But the central bank's departing chief economist, Andy Haldane, who took
part in his last Monetary Policy Committee meeting in June, has warned of
inflation of 4% and the risk that higher price growth sticks.

 

"Today's figures will be of concern to the Bank of England. With the weight
of opinion on the MPC set against early action and with the hawkish Andy
Haldane has now retired, it is not obvious who might advance the case for
early action," James Sproule, an economist with Handelsbanken, said.

 

"At least a start to unwinding of the quantitative easing program should be
a considered this autumn and that diversity of opinion on the MPC needs to
be preserved."

 

The BoE worries that the phasing out of the government's jobs subsidies
programme by the end of September could lead to higher unemployment which
would take the heat out of the rise in inflation.

 

Core inflation, which excludes the price of food, energy, alcohol and
tobacco was 2.3% in the 12 months to June compared with 2.0% in May, the ONS
said.

 

The acceleration of inflation reflects the weakness of demand last year when
much of the country's economy was shut down and consumers were ordered to
stay at home. Global oil prices have climbed this year as the world economy
recovers.

 

Wednesday's figures showed British fuel prices in June were 20.3% higher
than a year earlier, the biggest rise since 2010.

 

Prices paid by manufacturers for their inputs rose by 9.1% in the 12 months
to June, while the prices they charged rose by 4.3%.

 

($1 = 0.7224 pounds)

 

The Thomson Reuters Trust Principles.

 

 

 

Japan's Q3 growth forecast cut as new pandemic curbs hit: Reuters poll

(Reuters) - Japan's economy will grow at a slower pace than initially
expected in the third quarter, as fresh coronavirus emergency curbs in
Tokyo, extending through the Olympic Games, weigh on consumption, a Reuters
poll found.

 

But analysts saw growth accelerating in the fourth quarter, with a majority
expecting a "strong" or "very strong" boost from pent-up demand in the
second half of the year, offering some signs of a brighter outlook.

 

The world's third-largest economy was expected to grow an annualised 4.2%
this quarter, according to the poll of around 40 economists taken between
July 2 and 13, down from a 4.8% expansion projected last month. Economists
also trimmed annualised growth for the second quarter to 0.4% from 0.5%.

 

"The state of emergency that started in Tokyo will likely have quite an
impact on consumption," said Nobuyasu Atago, chief economist at Ichiyoshi
Securities.

 

"It's likely that pent-up demand will materialise later than expected. A
consumption recovery that was hoped for in July-September is being pushed
back to the fourth quarter."

 

The government introduced a new state of emergency in Tokyo this week that
is due to last until Aug. 22 - so through the July 23-Aug. 8 Olympic Games -
fuelling fears of an extended hit on bars and restaurants, which are being
asked to operate under shorter hours.

 

Japan's economy has struggled to stage a convincing recovery this year due
to the large toll the health crisis is taking on domestic demand, especially
for services such as travel, dining out and other leisure activities.

 

The government will release its second-quarter gross domestic product
estimate on Aug. 16, after the economy saw an annualised 3.9% contraction in
the January-March period. read more

 

The median poll forecast showed the economy would grow an annualised 4.6% in
the fourth quarter, slightly higher than last month's projection of a 4.4%
expansion.

 

Forecasts for the current and next fiscal years were left unchanged at 3.6%
and 2.6% growth, respectively.

 

Core consumer prices, which exclude volatile fresh food prices, will grow
only 0.3% this fiscal year, slightly up from 0.2% projected last month, the
poll showed.

 

SPENDING REBOUND

 

Risks from the health crisis to the economy have prompted calls from ruling
party lawmakers for additional stimulus spending to shore up growth. read
more

 

Even with Japan's vaccination rollout getting up to speed after a late
start, all analysts flagged a resurgence of infections as the biggest risk
to Japan's economy this year.

 

But in a welcome sign, projections in the poll showed nearly 60% of analysts
expected the boost to Japan's economy this year from pent-up demand and
built-up savings during the COVID-19 crisis to be "strong" or "very strong".

 

That was larger than the 40% of analysts who projected it to be "weak", and
the one forecaster who said it would be "very weak".

 

"It's likely the (consumption) rebound will be quite strong from September
to November," said Masamichi Adachi, chief economist for Japan at UBS
Securities, though adding that consumption may not expand much further next
year.

 

Respondents were unanimous in saying the Bank of Japan (BOJ) would hold its
short-term interest rate target at -0.1% and the 10-year bond yield target
around 0% at its policy meeting on July 15-16.

 

Almost 90% of analysts in the poll expected the BOJ's next policy move to be
an unwinding of stimulus, though they were divided about what the central
bank may do if it were to eventually tighten its policy framework.

 

Most widely expected options were for the BOJ to tweak its forward guidance,
raise the 10-year yield target, or abandon its negative rate policy and
raise short-term interest rates, the poll showed, unchanged from last month.

 

The Thomson Reuters Trust Principles.

 

 

 

Nigeria Loses $26.3bn to Oil Theft, Other Crimes Annually - Buhari

President Muhammadu Buhari says Nigeria loses at least $26.3bn to crude oil
thieves, pirates, kidnappers, smugglers and other criminals annually.

 

He said this at the Navy Headquarters in Abuja yesterday while commissioning
the FALCON EYE system - a state-of-the-art surveillance facility that
incorporates various sensors located along the nation's enormous coastline.

 

Buhari, represented by Vice President Yemi Osinbajo, wondered why criminal
acts could still be on the rise despite that he had signed the Suppression
of Piracy and other Maritime Offences Bill on June 24, 2019. He said: "In
recent years, some key identified threats within Nigeria's maritime
environment have taken on increasingly more harmful dimensions to our
economy and even the safety of citizens and commercial entities who use the
maritime domain."-Daily Trust.

 

 

 

South Africa: Several Taxi Drivers Shot As Authorities Try to Contain
Violence and Brace for Unrest in Cape Town

It's been a busy day in Cape Town as authorities tried to contain taxi
violence and then social media reports of looting - which proved to be
FALSE.

 

Several taxi-related shootings occurred on Tuesday, 13 July, in Cape Town.
Tuesday's shootings brings the total number of taxi drivers since the start
of 2021 to 76, said Daylin Mitchell, Western Cape MEC for Transport and
Public Works.

 

The South African Police Service (SAPS) confirmed the following shootings to
Daily Maverick:

 

Two 39-year-old men were shot and killed in Harare, Khayelitsha.

 

Then in Mew Way, also in Ktrhayelitsha, a 42-year-old man was shot and
wounded while an unknown male, believed to be a taxi driver was taken to
hospital after he sustained a gunshot wound.

 

Near Blikkiesdorp in Delft, a body of a 45-year-old man was discovered in
the driver's seat of his vehicle.

 

Also in Delft, police were called when a taxi driver sustained gunshot
wounds to both legs.

 

In the TRA 5 section of Delft South, a driver for a retail business was
dropping off employees when unknown men tried to stop the vehicle. The
driver sped off. Suspects fired shots at the vehicle, which wounded two
women and a...Daily Maverick.

 

 

 

Mozambique: Bank of Mozambique Fines Standard Bank for Fraudulent Practices

Maputo — Following an on-site inspection, the Bank of Mozambique on Monday
fined one of the country's largest commercial banks, Standard Bank, 290.1
million meticais (about 4.6 million US dollars at current exchange rates)
for engaging in fraudulent practices.

 

The central bank also fined Standard Bank's Chief Executive Officer,
Adimohanma Chukwuma Nwokocha, 6.4 million meticais, and the director of the
Corporate and Investment wing of the bank, Carlos Madeira, 14 million
meticais.

 

The Bank of Mozambique suspended Standard Bank, which is based in South
Africa, from dealing in foreign currency for a year, Nwokocha and Madeira
are banned for holding office in any bank or other financial institution for
six years.

 

A statement from the central bank said that its inspection of Standard Bank
had found that it committed "serious breaches of a prudential and exchange
rate nature."

 

The bank had allegedly "manipulated fraudulently the exchange rate". It had,
among other violations, also set up an illicit payments network,
headquartered outside the country, and had undertaken "irregular operations
in financial derivatives for covering the risks of exchange rate
fluctuations", which involved Madeira as a client.

 

According to the statement, the shareholders of Standard Bank are
cooperating with the Bank of Mozambique in order to clear up the
irregularities, and "safeguard the interests of Standard Bank clients and
other interested parties".

 

The shareholders must present a credible plan to remedy the irregularities,
and the Bank of Mozambique will impose "a resident inspector" on Standard
Bank, to ensure that the plan of action is implemented. On this will depend
the lifting of the suspension of Standard Bank's participation in the
exchange market.

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

Dairibord

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


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