Major International Business Headlines Brief::: 16 July 2021

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Major International Business Headlines Brief::: 16 July 2021

 


 

 


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

 


 

 


ü  Goldman Sachs to require staff to wear masks from Monday

ü  Entire whisky distillery ships out to China

ü  Covid staff shortage could shut meat production lines

ü  China's post-pandemic economic rebound loses steam

ü  Revolut becomes most valuable UK start-up after £24bn valuation

ü  Covid: Al fresco dining to become a High Street fixture in England

ü  Japan beefs up diplomatic efforts on regulating digital currency -
sources

ü  FAA orders checks on 9,300 Boeing 737 planes for possible switch failures

ü  BOJ cuts this year's growth forecast, unveils outline of climate scheme

ü  Tesla registrations in California surge 85% in second quarter - data

ü  Intel in talks to buy GlobalFoundries for about $30 billion - WSJ

ü  Asian shares slip as investors look past upbeat tech earnings

ü  Samsung considering another Texas location for $17 bln chip factory -
document

ü  Malawi: Local Company to Start Producing Powdered Milk in August

ü  Nigeria's Oil Output Sheds 11.47 Percent in Q2'21 - OPEC

ü  Nigeria: It's Sad Naira Has Lost Its Value - NECA, NLC

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Goldman Sachs to require staff to wear masks from Monday

Bankers returning on Monday to Goldman Sachs' £1bn London head office will
be required to wear masks in the building despite the easing of government
rules.

 

However, unlike some competitors, Goldman will not require staff to be
vaccinated to come into work.

 

It hopes 70% of UK staff will return to the office in the coming weeks.

 

The boss of Goldman Sachs International Richard Gnodde said the company
remained as committed to its London head office as ever.

 

Goldman bankers ordered to disclose vaccine status

Firms don't plan to rush back to offices on Monday

Financial services is a crown jewel in the UK economy and contributes 12% of
all taxes paid in the UK.

 

Since the Brexit vote, more than £1tn of customer and company money,
trillions more in transaction volumes and an estimated 8,000 jobs have left
the capital. This has left some questioning whether that crown was in danger
of slipping.

 

On the day real royalty in the shape of Prince Charles visited Goldman's
offices, Mr Gnodde told the BBC that the future for London remains bright.

 

'New opportunities'

"We put this building in place through the Brexit period and it really
underscores our confidence that London will remain one of the world's
leading financial centres," Mr Gnodde said.

 

"There has been some movement of assets. So you know, that has gone. And our
access to the European market is not as free as it used to be. We have to
build and create new opportunities."

 

But there was also a thinly disguised warning. Creating those opportunities
will need the help of the government and regulators to keep London
competitive with other international centres.

 

Mr Gnodde thinks that lessons can be learnt from the big bank deregulation
of financial services in 1985.

 

"The UK was unambiguously supportive of financial services - it was crystal
clear. I really want to stress this point - certainty - in terms of support
for business is absolutely key.

 

"And it has to be consistent. You can't support business on Monday and
Tuesday, and then criticise it on a Wednesday and Thursday
 that sends a
confusing message. Certainty is critical."

 

'Cut bureaucracy'

When City bosses talk about competitiveness, it's often code for lighter
regulation. Outside the EU, many have called for a bonfire of regulation. If
Mr Gnodde had the match which bits would he burn?

 

"Eliminate duplication and unnecessary excessive reporting. Let's do what we
have to do to have effective regulation. But let's cut out some of the
bureaucratic elements to enable firms to use their capital resources
efficiently."

 

Doing more business with the fastest growing parts of the globe means
grappling with the economic might of China. How complicated could that be
when Chinese firms are being booted out of telecoms infrastructure,
democracy in Hong Kong is under assault and China is facing allegations of
using forced labour of the Uyghur population?

 

"I think this this is a multifaceted relationship," he answered.

 

"I think our relationship with China, in many ways will be as a partner. If
we're going to tackle climate change, we're going to have to do this
together. We live on the same planet. They will be a customer and a client
of many of our businesses. And then absolutely, we should have the right
appropriate conversations on the political arena in the areas where we
compete."

 

It's a big world out there with plenty of opportunity - and while Mr Gnodde
accepts the UK outside the EU is arguably a smaller fish, that's not
necessarily an bad thing.

 

"Sometimes being a smaller fish is an advantage. Your level of paranoia goes
up - you need to move to innovate, to create. Look over the last century and
the issues that this country has been through and we're absolutely confident
that the people of Britain will take it forward again."

 

Statements like that will be sure to help mend a sometime fractious
relationship between the City and the government over the past few
years.--BBC

 

 

 

Entire whisky distillery ships out to China

An entire whisky distillery is being shipped out from Scotland to China on
Friday.

 

More than 35 tonnes of equipment, including stills, flooring, control valves
and pipework, is leaving Buckie in Moray for the port of Tianjin.

 

The equipment will be assembled at a facility being built in Inner Mongolia.

 

The shipment is part of a £3m "design and build" deal signed between Forfar
firm Valentine International and China's Mengtai Group in 2019.

 

The facility in Ordos will become Inner Mongolia's first whisky distillery
when it opens, probably at the end of this year.

 

All of the distillery equipment was built by Rothes-based firm Forsyths,
which is sending a team of five engineers to supervise assembly.

 

Forsyths have a team in Hong Kong to provide after-sales back-up and
services.

 

Valentine International chairman and managing director David Valentine said
the project was the brainchild of Mengtai chairman Ao Fengting, who planned
to create a "globally award-winning whisky".

 

Mr Valentine, who specialises in establishing commercial ventures in China,
said: "Scotland is the home of whisky and has the greatest expertise in
terms of distillery equipment manufacture, which is why Mr Fengting believes
we will deliver a world-beating project for him in Ordos."

 

It is Mengtai's first venture into the world of whisky. One of Inner
Mongolia's largest private firms, its core businesses include coal
production and electricity generation.

 

In a separate development, Valentine International has signed a "strategic
agreement" with Mengtai to supply bulk whiskies for China.

 

Mr Valentine declined to name the whisky distiller in that deal but said it
was a "long-established" firm.-BBC

 

 

 

Covid staff shortage could shut meat production lines

Staff absences could see shortages of meat products, the industry has
warned.

 

Meat processors are seeing up to one in 10 of their workforce told to
self-isolate by the NHS Covid app.

 

Some companies could be forced “to start shutting down production lines all
together,” warned Nick Allen, chief executive of the British Meat Processors
Association (BMPA).

 

As Covid cases exceed 250,000 a week, a growing number of businesses are
reporting disruption due to absence.

 

The UK meat processing industry employs about 97,000 workers in the UK, but
it was suffering from shortages before the pandemic began.

 

Many firms were operating with 10% fewer staff than they needed. The latest
increase in absences has added to the problem.

 

“As a result, companies are having to simplify down their range of products
to compensate for key skills being removed from their production lines,”
says Mr Allen.

 

“If the UK workforce situation deteriorates further, companies will be
forced to start shutting down production lines all together.”

 

The BMPA represents about 90% of the industry by value of production.

 

The first products to be hit could be the cuts which require more work from
skilled butchers, such as French-trimmed lamb chops with the fat removed,
according to Mr Allen.

 

These are also among the most profitable lines for processors, so the
financial impact could be significant.

 

Mr Allen called for greater clarity about how long to isolate for when
pinged by the app and continued access for business to free Covid testing
kits, which is due to end on 19 July.

 

Businesses are warning of increasing levels of Covid absence, as the current
wave of infections grows. The number of people notified by the app in
England and Wales recently passed half a million in a single week.

 

Lord Bilimoria, president of the CBI - which represents 190,000 businesses -
said that number came as a "genuine shock."

 

"Staff shortages are being felt acutely across all sectors and in all areas
of business particularly, hospitality and leisure," he said.

 

Lord Bilimoria believes the NHS Test and Trace system needs an "overhaul"
and is calling on the government to "urgently" bring forward its plans to
allow double-jabbed individuals not to self-isolate if they have been
informed by the app that they have come into contact with a Covid positive
individual.

 

Earlier this month, Health Secretary Sajid Javid warned that the number of
cases could hit 100,000 a day - more than double the current level.

 

Car-makers Nissan and Rolls-Royce have warned that production could be
affected by large numbers of staff being told to isolate and UK Hospitality,
the trade body for bars and restaurants, said it was causing “carnage” among
its members.

 

>From 16 August, the rules in England will change so that anyone who has had
two vaccinations will not be required to self-isolate if the app says they
have been in close contact with an infected person.

 

Post-Brexit recruitment difficulties have made staffing problems worse in
the meat processing industry, with some firms drawing 80% of their staff
from the European Union, according to Mr Allen.

 

“We’ve been calling on the government for months to add butchers to the
Shortage Occupation List, which would allow the industry to temporarily fill
these growing vacancies with overseas workers until the current crisis has
passed,” he said.-BBC

 

 

China's post-pandemic economic rebound loses steam

The Chinese economy's sharp rebound from the coronavirus pandemic has now
slowed, official figures show.

 

Gross domestic product (GDP) increased by 7.9% in the second quarter of 2021
compared to the same time last year.

 

That was less than half the rate seen in the previous quarter and missed
economists' forecasts of 8.1% growth.

 

GDP is one of the most important ways of showing how well, or badly, an
economy is doing.

 

It's a measure - or an attempt to measure - all the activity of companies,
governments and individuals in an economy.

 

Official figures for June also showed better-than-expected growth for retail
sales and industrial production.

 

"China's economy sustained a steady recovery with the production and demand
picking up," the NBS said in a statement.

 

However, the release went on to caution: "The epidemic continues to mutate
globally and external instabilities and uncertainties abound."

 

Economists have raised concerns about the recovery of the world's second
largest economy in recent months.

 

Record high prices for commodities, like iron ore and copper, helped to push
its factory inflation to the highest level in more than a decade.

 

The country has also seen supply chain disruptions as shipping firms have
been hit with backlogs, while shortages of energy also hampered factory
output.

 

In April, official figures showed that China's economy grew a record 18.3%
in the first quarter of 2021 compared to the same quarter last year.

 

It was the biggest jump in GDP since China started keeping quarterly records
in 1992.

 

However, that expansion was also below expectations, after a Reuters poll of
economists predicted growth of 19%.

 

They were also heavily skewed, and less indicative of strong growth, as they
are compared to last year's huge economic contraction - China's economy
shrank 6.8% in the first quarter of 2020 due to nationwide lockdowns at the
peak of its Covid-19 outbreak.-BBC

 

 

 

Revolut becomes most valuable UK start-up after £24bn valuation

London-based Revolut, a digital banking and payments start-up, has set a
record as the UK's most valuable private tech company ever.

 

It reached a £24bn valuation in its latest funding round, making it more
valuable than High Street bank NatWest.

 

The six-year-old company is now worth six times more than it was valued at
last year.

 

The investment round raised $800m (£579m) from Japan's SoftBank and New
York-based Tiger Global Management.

 

Both investment groups now hold a 5% stake in the start-up, which has more
than 15 million users.

 

Revolut provides currency exchange, current account and crypto-currency
services for customers across 35 countries but is still in the process of
attaining a UK banking licence.

 

What is Revolut?

Price rises speed up again as economy unlocks

Founded by the former Lehman Brothers trader Nik Storonsky, the start-up was
an early entry into crypto-currency markets -which some say rocketed its
success.

 

In a statement, Mr Storonsky said the valuation was "an endorsement of our
mission to create a global financial super-app that enables customers to
manage all their financial needs through a single platform".

 

Karol Niewiadomski, senior investor for SoftBank, said the company's "rate
of innovation has redefined the role of financial services, placing
[Revolut] at the forefront of Europe's nascent neobanking sector".

 

Revolut plans to use the investment to expand into the Indian and US
markets.

 

The firm saw its losses double to £201m last year, which it blamed on having
to hire more staff.

 

European fintech firms are rapidly gaining scale, with Sweden-based payments
company Klarna reaching a valuation of £32.9bn ($45.6bn) last month.

 

Mikko Salovaara, Revolut's chief financial officer, said his company planned
to list its shares on the stock market "eventually" at an even higher
valuation.

 

'Not a traditional bank'

Professor of Business Economics at Oxford University, Nir Vulkan, told the
BBC that the valuation confirms Revolut sees itself as a tech firm rather
than a bank.

 

"There's no way a traditional bank would ever get a valuation like this,"
Prof Vulkan explained.

 

However, he said that Revolut and other "neobanks" faced obstacles when
competing against traditional lenders.

 

"Many people have accounts with Revolut and Monzo, but very few get their
salary paid into those accounts - that will be their real challenge."

 

The firm faced scrutiny after a 2019 BBC investigation discovered that an
employee had made a complaint to the Financial Conduct Authority in 2016,
asking it to investigate the compliance of Revolut and the conduct of its
chief executive.

 

The whistleblower told the BBC that Revolut's systems for flagging suspect
payments were "utterly inadequate".

 

Revolut denied the allegations and told the BBC this was "the first time
Revolut has been made aware of any such complaint, which appears to have
been made by a former employee who left the company several years ago".

 

The BBC understands that Revolut has seen the departure of two chief risk
officers, two money laundering reporting officers, a chief compliance
officer and a chief finance officer, among other roles.

 

Lithuanian politicians also investigated the company for national security
reasons after it emerged that Mr Storonsky's father was a director at a
subsidiary of Russian natural gas group Gazprom, which has been under US
sanctions since 2014. Revolut was found to pose no security risks after the
investigation.-BBC

 

 

 

Covid: Al fresco dining to become a High Street fixture in England

Pavement dining and outdoor pint licences will continue for another year in
England as part of a government plan to get hospitality back on its feet.

 

Hospitality has been one of the hardest-hit sectors during Covid but
rebounded strongly in recent months.

 

But the industry is still facing challenges with a sustained staff shortage
and the permanent closure of nearly 10,000 licensed premises.

 

UK Hospitality said pavement licensing was "a real boost" for businesses.

 

As part of its new strategy for hospitality, the government will also work
to highlight vacancies in the industry to jobseekers.

 

Minister for small business Paul Scully said the government strategy would
"explore new options for vocational training and help further boost the
creativity and environmental friendliness of the sector".

 

Kate Nicholls, boss of industry group UK Hospitality, told the BBC the
strategy would "help our sector to drive" wider economic recovery.

 

"The extension - and potential permanent retention - of streamlined pavement
licensing is a real boost for pubs, cafes and restaurants, who will be
delighted that they can continue to make use of outdoor areas, helping them
to navigate their way more speedily back to profitability," she added.

 

The UK economy expanded by 0.8% in May, in part due to the reopening of
indoor hospitality, which meant the service sector grew 0.9%. But Ms
Nicholls recently told a group of MPs that the industry had amassed £2.5bn
of rent debt.

 

"Building and training our workforce is a top priority if hospitality is to
quickly revive and drive a national recovery, so it's incredibly positive
that a key part of this strategy is focused on addressing the current
recruitment challenges and raising the profile of long-term sector careers,"
she added.

 

The government's plan will also focus on carbon reduction and working with
businesses to reduce waste and plastic consumption.

 

'It's the right decision'

Ellie Gill, landlady at The Grapes in Bath explained that without takeaway
pints and outside space her business would not have been able to open last
April.

 

The pub has capacity for 35 socially-distanced customers inside and the
pavement licenses meant she could double the capacity and sit an extra 40
outside.

 

"With the amount of cases going on sitting outside is what people most want
to do," she said.

 

The pub is piloting so-called 'parklets' where unused parking spaces are
turned into extra space for outdoor dining, as agreed with the council.

 

"It has enlivened Bath," she told the BBC.

 

"If we're looking at a future of pandemics, allowing seating outside,
reducing city traffic and pollution is what we need to do so businesses
survive."

 

But outdoor hospitality has also created accessibility issues for many
people. Some disabled people, especially wheelchair users, have seen reduced
access to certain streets and city centres.

 

Accessibility campaigner Katie Pennick told the BBC she felt the initial
pavement licenses were "vague" in ensuring that clear routes of access are
maintained. Though her wheelchair is only 23 inches wide, she said really
struggled to get through a street on a Friday night.

 

'Its been a life-saver'

David Taylor, who owns London-based Balans restaurants, says that the
pavement licence has been a "life-saver" for his business.

 

His two restaurants on London's Old Compton Street have been able to add 30
extra customers for each premises. But Mr Taylor told the BBC there are
bigger problems businesses like his are facing.

 

"The government need to sort out the very high business rates and VAT if
they really want to get restaurants back on their feet - that should be
their top priority."

 

Mr Taylor told the BBC that from Monday, Westminster Council have told him
they will not allow gazebos and heaters for his pavement dining table and he
thinks there could be caveats to the new government strategy.

 

"Unlike the start of the crisis, we're on the government's radar- now
they've realised how many people work in the sector, so let's see if they
follow through with proper help," he said.

 

'No silver bullet but it's part of a vital mix'

Mark Laurie from the National Caterer's Association (NCASS), said local
authorities "will need to show flexibility and understanding towards
businesses, not just in the pavement licences but opening up high streets
and other spaces to the public and for commerce".

 

Mr Laurie added the pavement licences have been a "lifeline to many of the
independent hospitality businesses we represent".

 

"Al fresco is safer, its fun and it will help businesses, at least while the
weather holds. It's no silver bullet but it's part of a vital mix," he said.

 

Ross Bailey, founder of the UK-wide campaign group Save The Street agreed
and said it was the "right decision" to extend the licence.

 

"The extension will allow businesses to capitalise on the massive demand we
are seeing post lockdown. The street feels alive again and it is beautiful
to see," he said.-BBC

 

 

 

Japan beefs up diplomatic efforts on regulating digital currency - sources

(Reuters) - Japan is beefing up its diplomatic efforts to regulate digital
currencies globally, three officials told Reuters, a sign of the
government's growing alarm that a proliferation of new forms of private
money could upend the financial system.

 

Tokyo is playing catch-up in a global debate among financial regulators
about setting stricter rules on private digital currencies.

 

Regulators from the Group of Seven industrial powers and the Group of 20 big
economies have called for greater regulation of "stablecoins" - a form of
cryptocurrency typically pegged to a national currency.

 

To deepen dialogue with their counterparts, Japan's Financial Services
Agency (FSA) last week established a section to oversee digital currency
regulation, while the Ministry of Finance is considering increasing staff,
the officials said on condition of anonymity due to the sensitivity of the
matter.

 

"Japan can no longer leave things unattended with global developments over
digital currencies moving so rapidly," one official said.

 

The move by government bureaucracies complements efforts by the Bank of
Japan, which is experimenting with ideas to issue a digital yen that it
thinks could serve as a safer alternative to private settlement means.

 

Global regulators worry about the growing presence of big-tech retail
settlement platform operators that are not regulated by traditional banking
rules. If they offer various settlement means using private digital
currencies, that would erode the grip regulators have on financial
regulation.

 

The Bank of England said last month that payments with stablecoins should be
regulated in the same way as payments handled by banks if they start to
become widely used. U.S. Federal Reserve chief Jerome Powell has also called
for greater regulation, warning that cryptocurrencies pose risks to
financial stability. read more

 

REGULATORS WARY

 

The new unit at Japan's FSA, launched on July 8, also aims to oversee
"decentralised finance" - a blockchain-based form of finance that does not
rely on central financial intermediaries, the officials said. The agency
created a new position to head the section.

 

The finance ministry is considering increasing headcount at an existing
division to ramp up digital currency oversight, the officials said. The
ministry will submit a budget request by August, they said.

 

The finance ministry did not immediately respond to a request for comment.
An FSA official confirmed it has created the new section but said there was
no decision yet on the scope of its operations.

 

Stablecoins are cryptocurrencies designed to have a stable value relative to
traditional currencies or to a commodity such as gold, to avoid the
volatility that makes bitcoin and other digital tokens impractical for most
commerce.

 

No stablecoins have gained traction in day-to-day commerce, but a proposal
by Facebook in 2019 to create a digital currency for use on its platforms
alarmed global financial regulators.

 

They fret that if private digital currency becomes too big, it could
fragment a country's financial system. Experts also say a lack of
transparency is making cryptocurrencies a useful tool for money laundering
and tax evasion.

 

Authorities in Tokyo have been stepping up coordination on digital currency
research and prospects for issuing a central bank digital currency. The BOJ
in March created a committee bringing together MOF and FSA officials, as
well as lobbyists from the banking and finance sector, to share information
on such a currency.

 

The Thomson Reuters Trust Principles.

 

 

 

FAA orders checks on 9,300 Boeing 737 planes for possible switch failures

(Reuters) - The Federal Aviation Administration (FAA) on Thursday issued a
directive to operators of all Boeing Co (BA.N) 737 series airplanes to
conduct inspections to address possible failures of cabin altitude pressure
switches.

 

The directive requires operators to conduct repetitive tests of the switches
and replace them if needed. The directive covers 2,502 U.S.-registered
airplanes and 9,315 airplanes worldwide.

 

It was prompted after an operator reported in September that both pressure
switches failed the on-wing functional test on three different 737 models.

 

The FAA said failure of the switches could result in the cabin altitude
warning system not activating if the cabin altitude exceeds 10,000 feet
(3,050 m), at which point oxygen levels could become dangerously low.

 

Airplane cabins are pressurized to the equivalent of not more than 8,000
feet (2438 m).

 

Boeing said it supports "the FAA’s direction, which makes mandatory the
inspection interval that we issued to the fleet in June."The FAA directive
did not report any in-flight failures of the switches.

 

The FAA said on Thursday that tests must be conducted within 2,000 flight
hours since the last test of the cabin altitude pressure switches, before
airplanes have flown 2,000 hours, or within 90 days of the directive's
effective date.

 

Boeing initially reviewed the issue, including the expected failure rate of
the switches, and found it did not pose a safety issue.

 

Subsequent investigation and analysis led the FAA and Boeing to determine in
May that "the failure rate of both switches is much higher than initially
estimated, and therefore does pose a safety issue." Boeing declined to say
what the failure rate was.

 

The FAA added it "does not yet have sufficient information to determine what
has caused this unexpectedly high failure rate."

 

Due to the importance of functions provided by the switch, the FAA in 2012
mandated all Boeing 737 airplanes utilize two switches to provide redundancy
in case of one switch’s failure.

 

The directive covers all versions of the 737 jetliners, including the MAX,
but is unrelated to any issues related to the MAX's return to service last
November.

 

The Thomson Reuters Trust Principles.

 

 

 

BOJ cuts this year's growth forecast, unveils outline of climate scheme

(Reuters) - The Bank of Japan cut this fiscal year's growth forecast on
Friday but maintained its view the economy was headed for a moderate
recovery, signalling that monetary policy will be on a holding pattern for
the time being.

 

At its two-day rate review that ended on Friday, the BOJ also released an
outline of its new scheme aimed at boosting funding for activities combating
climate change.

 

It will offer zero-interest funds for a period of a year that can be rolled
over any number of times to financial institutions that boost loans or
investment for battling climate change, the outline showed.

 

As widely expected, the central bank left unchanged its yield curve control
(YCC) target at -0.1% for short-term interest rates and 0% for 10-year bond
yields.

 

In fresh quarterly projections released on Friday, the BOJ said it expects
the economy to expand 3.8% in the current fiscal year ending in March 2022
and increase 2.7% the following year.

 

In prior forecasts made in April, the BOJ had expected the economy to grow
4.0% this fiscal year and 2.4% the following year.

 

The Thomson Reuters Trust Principles.

 

 

 

Tesla registrations in California surge 85% in second quarter - data

(Reuters) - Tesla Inc's (TSLA.O) vehicle registrations in California rose
more than 85% in the second quarter versus last year, largely due to the
success of the company's Model Y, according to data from Cross-Sell, a
research firm that collates title and registration data.

 

The automaker posted record vehicle deliveries for the April-to-June quarter
earlier this month, as it dealt with a semiconductor shortage and relied on
sales of its cheaper models. read more

 

California registrations for the Model Y, Tesla's electric crossover utility
vehicle, jumped more than sevenfold to 13,581, Cross-Sell data showed on
Thursday.

 

The focus is now on the company's second-quarter earnings report due on July
26, with investors waiting to gauge if bitcoin's recent fall would hit
Tesla's bottom line, due to its exposure to the cryptocurrency's volatility.

 

Total second-quarter vehicle registrations in the 23 states where data was
collected stood at 46,926, with Model Y accounting for more than half of the
registrations.

 

California, a bellwether for the electric-car maker, accounted for about
half of the vehicle registrations in these states with a total of 23,556
registrations, Cross-Sell data showed.

 

Tesla has been increasing prices for its vehicles in recent months, with
billionaire boss Elon Musk in May blaming the rise on "major supply chain
price pressure", especially raw materials.

 

Registration figures might not accurately reflect the number of vehicle
deliveries during the quarter as registrations in the United States
typically take about 30 days from the time of sale.

 

The Thomson Reuters Trust Principles.

 

 

 

Intel in talks to buy GlobalFoundries for about $30 billion - WSJ

(Reuters) - Intel Corp (INTC.O) is in talks to buy semiconductor
manufacturer GlobalFoundries Inc for about $30 billion, the Wall Street
Journal reported on Thursday, citing people familiar with the matter.

 

Any deal talks don't appear to include GlobalFoundries directly, as a
spokesperson for the company told the Journal it was not in discussions with
Intel, according to the report. (https://on.wsj.com/3yXFQLU)

 

Talks come as a semiconductor shortage is hobbling industries around the
globe. A deal could help Intel ramp up production of chips at a time demand
is at its peak and the company is looking to start producing chips for car
makers that have struggled to keep operations running due to severe
shortages.

 

Intel, one of the last companies in the semiconductor industry that both
designs and manufactures its own chips, said earlier this year it would
expand its advanced chip manufacturing capacity by spending as much as $20
billion to invest in factories in the U.S.

 

Intel said it intended to open its factories to outside chip designers, as
it competes with Taiwan's Semiconductor Manufacturing Co Ltd (2330.TW) and
Korea's Samsung Electronics Co Ltd (005930.KS).

 

GlobalFoundries, which is owned by Abu Dhabi sovereign wealth fund Mubadala
Investment Co, has a manufacturing footprint across the U.S., Europe and
Asia.

 

Mubadala is looking at a potential listing of GlobalFoundries later in the
year, Reuters reported in June, citing sources familiar with the matter.
(https://reut.rs/2UQD0cK)

 

GlobalFoundries' customers includes Advanced Micro Devices Inc (AMD.O), its
parent company before it was spun off more than a decade earlier, a
relationship that could spark antitrust questions about an Intel deal.

 

Intel declined to comment, while Mubadala and GlobalFoundries did not
immediately respond to Reuters requests for comment.

 

The Thomson Reuters Trust Principles.

 

 

 

Asian shares slip as investors look past upbeat tech earnings

(Reuters) - Asian shares headed lower on Friday as profit-taking in
Taiwanese chip giant TSMC, despite record profits, weighed on other tech
firms and broader risk sentiment, while a more dovish U.S. rates outlook
kept bond yields near multi-month lows.

 

The lead for Europe was mixed with futures for Eurostoxx 50 and Spain's IBEX
barely changed, Germany's Dax futures up 0.1%, while those for London's FTSE
rose 0.3%.

 

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS)
lost 0.4%, weighed by a 0.8% drop each in China's blue-chip index (.CSI300)
and Taiwanese shares (.TWII) after TSMC's earnings on Thursday.

 

TSMC (2330.TW), Asia's biggest firm by market capitalisation outside China,
fell almost 4% following its earnings on Thursday. read more

 

While the world's largest contract chipmaker posted record quarterly sales
and forecast higher revenue, investors took profits, fearing its best times
could already be behind it.

 

"Its earnings were excellent and to me, the market seems to be a bit
overreacting," said Norihiro Fujito, chief investment strategist at
Mitsubishi UFJ Morgan Stanley Securities. "But the fall in its profit margin
led to the view that its growth momentum might be peaking out."

 

TSMC's fall weighed on many other semiconductor related shares in the
region, with South Korea's Kospi (.KS11) down 0.4% and Japan's Nikkei
(.N225) losing about 1%.

 

Weakness in chip-related shares also helped bring down the S&P 500 (.SPX)
0.33% and the Nasdaq Composite (.IXIC) 0.70% on Thursday.

 

While those indexes remained near record levels, supported by the prospects
of an economic recovery, investors were turning wary on riskier, less liquid
assets.

 

The Russell 2000 index of U.S. small cap shares (.RUT) dropped 0.6% to a
near two-month low. Once-booming special purpose acquisition companies
(SPACs), or "blank check companies", were completely out of favour, with
Ipox Spac index (.SPAC) hitting a seven-month low.

 

Investors instead flocked to bonds, after Federal Reserve Chair Jerome
Powell reiterated that rising inflation is likely to be transitory and that
the U.S. central bank would continue to support the economy.

 

Powell on Wednesday pledged "powerful support" to complete the U.S. economic
recovery from the coronavirus pandemic, a message he repeated on Thursday.
read more

 

The 10-year U.S. Treasuries yield fell to 1.302% , edging near five-month
low of 1.250% touched last week.

 

The yield on inflation-protected U.S. bonds fell to minus 1.043% , a
five-month low.

 

Bond yields fell even as data earlier this week showed U.S. consumer
inflation hitting its highest in 13 years. read more

 

"Short positions in bonds simply don't work, so much so that you just lose
vigour," said Arihiro Nagata, general manager of global investment at
Sumitomo Mitsui Bank. "You can't fight the Fed when there is such a massive
easing."

 

In foreign exchange, major currencies were little changed on the day but the
dollar headed for its best weekly gain in about a month.

 

"Delta variants are raging in countries where vaccination is limited. In a
way, the dollar and U.S. assets appear to be bought as a hedge against
that," said Sumitomo Mitsui's Nagata.

 

The kiwi was the biggest mover amongst majors in the Asia session, and was
last up 0.6% at $0.7020.

 

Gold on the other hand hit a one-month high of $1,834.3 per ounce and last
stood at $1,825.4, supported by a dovish Fed.

 

Oil prices were heading for their biggest weekly drop since at least May as
expectations of more supplies spooked investors, with OPEC likely to add
output to meet a potential revival in demand as more countries recover from
the pandemic.

 

U.S. crude futures fell 32 cents to $71.33 per barrel , near last week's low
of $70.76. Brent futures slipped 35 cents to $73.11 per barrel .

 

The Thomson Reuters Trust Principles.

 

 

 

Samsung considering another Texas location for $17 bln chip factory -
document

(Reuters) - Samsung Electronics (005930.KS) has applied for tax breaks to
potentially build its planned $17 billion U.S. chip factory in a location in
Texas other than Austin, where it has an existing chip plant, according to a
document filed with Texas state officials.

 

Samsung is considering a location in Williamson County in Texas for the chip
contract manufacturing facility that would consist of an investment "in
excess of $17 billion dollars" and result in 1,800 new jobs, the document
made public on Thursday showed.

 

Williamson County is home to the Taylor Independent School District, which
is considering the tax breaks Samsung has applied for, the documents showed.
The school district is considering capping the taxable value of Samsung's
proposed facility at $80 million for 10 years instead of the market value of
$4.35 billion estimated as of 2029, according to the document.

 

Earlier this year, Samsung had sought incentives from Travis County, Austin,
where it has its existing chip plant, to possibly build the $17 billion
facility there. read more

 

However, there has been no new public documentation filed for the Travis
County site since March, the website for the Texas Comptroller of Public
Accounts showed on Friday. read more

 

Samsung reiterated in the document that it is also looking at alternative
sites in the United States including Arizona and New York, as well as in
South Korea.

 

Should an investment be made, Samsung plans to break ground by the first
quarter of next year with production due to start by end-2024, it showed.

 

Countries such as the United States have redoubled efforts to secure chip
production as a continued global shortage of semiconductor chips hobbles
various industries including automobiles. read more

 

The Thomson Reuters Trust Principles.

 

 

 

Malawi: Local Company to Start Producing Powdered Milk in August

Dairy farmers from within and outside Blantyre will no longer travel long
distances with bottles of fresh milk in search of customers following a
decision by a group of local businesspersons to open a powdered milk
producing company.

 

The company, located at Mpemba in the outskirts of Malawi's commercial city,
expects to buy fresh milk from over 5000 dairy local farmers and create
employment opportunities for 200 people.

 

The opening of the company, Mach Milk Company, will also provide Malawians a
rare opportunity to contribute towards the development of their country
through buying and consuming locally produced products.

 

On Tuesday, the Minister of Industry Roy Kachale Banda visited the site to
appreciate the progress the company is making in preparation for the full
operation of the company is August this year.

 

Kachale Banda assured the company of the government's commitment to creating
a conducive environment for the thriving of the private sector.

 

"I am particularly encouraged by the opening of this company because it is
in line with the vision of the Tonse Alliance government to create more job
opportunities our youths. As such, the government is committed to supporting
the creation of both large and small and medium enterprises in our
collective pursuit for a sustainable social and economic development of our
country," said the minister.

 

Mach Milk Company Director Madalitso Phiri said they decided to venture into
this business to complement efforts by the government to address the
challenges dairy farmers are facing to access sustainable markets for their
milk.

 

"Malawi does not have a company that produce milk powder from fresh milk. So
I thought of bringing a solution to these problems," said Phiri.

 

He said the company expect to produce 144, 000 kilogrammes of milk powder
annually.-Nyasa Times.

 

 

 

Nigeria's Oil Output Sheds 11.47 Percent in Q2'21 - OPEC

Apparently in a bid to comply with the output quota of the Organisation of
Petroleum Exporting Countries, OPEC, Nigeria's oil output dropped 11.47 per
cent year-on-year, YoY, in the second quarter of 2021 (Q2'21). But the
decline also shows significant under-production against the quota.

 

In its July 2021 Monthly Oil Market Report, MOMR, obtained by Vanguard, the
OPEC disclosed that on the average, the nation produced 1.343 million
barrels per day, mb/d, in Q2'21 compared to 1.517 mb/d produced in Q2'20.
This also compares negatively with the OPEC quota of 1.4 mb/d.

 

Specifically, the report has it that the country produced 1.372 mb/d, 1.344
mb/d and 1.313 mb/d, in April, May and June, 2021 respectively, compared to
1.705 mb/d, 1.436 mb/d and 1.411 mb/d, produced in the corresponding months
of 2020.

 

At the Q2'21 average output the country requires about 500 mb/d output on
condensate to meet its 2021 budgetary target of 1.8 mb/d. But currently the
estimated condensate output is put at 400 mb/d, indicating a likely
significant shortfall.

 

However, the shortfall may not affect revenue estimates since the 2021 oil
revenue was based on oil price of $40 per barrel, while actual price in
recent weeks have hovered above $70 per barrel.

 

Meanwhile the OPEC report, which painted a bright prospect for the oil
market in the remaining part of 2021, stated: "World oil demand growth in
2021 is forecast at 6.0 mb/d, unchanged from last month's assessment,
although there have been some regional revisions. Total oil demand is
projected to average 96.6 mb/d.

 

"The Q1'21 was revised lower, amid slower than anticipated demand in the
main Organisation for Economic Co-operation and Development (OECD), OECD
consuming countries. This was counter-balanced by better-than-expected data
from OECD Americas in Q2'21, which is now projected to last through the
Q3'21.

 

"Solid expectations exist for global economic growth in 2022. These include
improved containment of COVID-19, particularly in emerging and developing
countries, which are forecast to spur oil demand to reach pre-pandemic
levels in 2022."-Vanguard.

 

 

 

Nigeria: It's Sad Naira Has Lost Its Value - NECA, NLC

Nigeria Employers' Consultative Association, NECA, and Nigeria Labour
Congress, NLC, yesterday, lamented the depreciating value of the nation's
currency, decrying the continued slide of value of the naira.

 

NECA and NLC made their views known during NECA's 64th Annual General
Meeting, AGM, in Lagos.

 

President of NECA, Mr. Taiwo Adeniyi, said if government could address the
issue of insecurity, rising cost of food and transportation, low investment
pattern, challenge in sourcing of foreign exchange and rising inflation,
there would be improvement in performance of all sectors/sub-sectors.

 

He lamented that the nation's inflation rate hit a four-year peak in March
2021, as food prices jumped more than 20 per cent, heaping financial
pressure on households already faced with a shrinking labour market and a
challenged economy.

 

Adeniyi said: "The country's external reserves fell to a 13-month low in
June 2021, tumbling quickly to $33.8 billion, the level it was between 2015
and 2017.

 

"The reserves fell by $222.3 million between May 31 and June 10 to $34.0
billion, according to figures published by the Central Bank of Nigeria, CBN.

 

"The falling reserves could leave the country's embattled economic outlook
worse off as the confidence of foreign investors is partly influenced by the
size of its reserve. At the height of the COVID-19 pandemic, the figure
oscillated between $34 billion and $36 billion and even crossed $36.5
billion occasionally.

 

"Nigeria's current reserve is among the lowest of the oil-producing
countries. For instance, it is less than 10 per cent of that of Saudi
Arabia, world's leading oil-producing nation, in nominal terms. The real
disparity is even wider when the populations and import values of the two
countries are compared. The decline has persisted despite the gains recorded
in the global crude oil price."

 

It's sad--NLC

 

On its part, NLC President, Ayuba Wabba, said: "The current high inflation
is bad for businesses and country's development. It's sad, Nigeria's
currency no longer has value.

 

"For instance, since 2015 till date, our currency has lost its value more
than 150 per cent when you compare it with our neighbouring countries such
as Ghana, Togo and Benin Republic. In 2015, one million CFA was equivalent
to N250,000 but today, one million CFA is equivalent to N 1 million.

 

"So this has greatly affected the cost of goods and services as well as the
purchasing power of Nigerians. If you look at our demography, young people
constitute a huge part of our population and that has largely been impacted
by COVID-19 pandemic whereby a lot of people lost their job."

 

Wabba lamented that as a country with over 200 million populations, the
country was expected to produce 80 per cent of its consumption, but noted
that the reverse was the case.

 

"So the 33 per cent unemployment figure was an understatement because we all
know that we have an issue in this country when you talk about statistic and
data so it's above that figure. We need to understand that we have two
categories of unemployment, uneducated and educated youths.

 

"The most dangerous category is uneducated and they are actually
contributing to the insecurity going on in the northern part of the country.
We must look at the ways to engage this category of people as well as taking
care of those that are educated but unemployed," he said.

 

Wabba advised the government to continue working towards creating a
conducive environment for local businesses to thrive, so they could create
jobs.

 

In his remarks, Minister of Labour and Employment, Senator Chris Ngige,
commended NECA for influencing economic and socio-labour policies that were
creating a favourable operating environment for sustainable enterprise in
Nigeria.

 

Ngige, who was represented by his Special Technical Assistant to the
Minister of Labour and Employment, Ms. Chinedu Dike, appreciated the
organization for cooperating with government in the peak of COVID-19
pandemic.

 

"We appreciate you for your commitment in the face of global pandemic. The
negative impact of the pandemic is a global phenomenon and we believe in a
systemic approach in addressing the situation and resuscitating the
economy," Ngige said.-Vanguard.

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

Dairibord

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


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

 


 

 

 

 

 

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