Major International Business Headlines Brief::: 17 July 2021

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Major International Business Headlines Brief::: 17 July 2021

 


 

 


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

 


 

 


ü  Hong Kong: US issues warning on business risks

ü  Covid: Fully jabbed arrivals from France must still quarantine

ü  Drugs giant GSK's plan to create up to 5,000 jobs in new UK hub

ü  Is the Bank really hooked on quantitative easing?

ü  U.S. officials look to address transportation supply chain issues

ü  Cash-flush Americans lift U.S. retail sales; shortages depress auto
purchases

ü  Senator asks airlines about worker shortages after billions in U.S.
bailouts

ü  U.S. issues advisory to businesses warning of Hong Kong risks

ü  Biden battles Russian hacking groups with restrictions on IT firms

ü  Vineyard Wind strikes labor union pact for U.S. offshore wind farm

ü  Nigeria Inflation Falls Again As Food Price Hike Slows

ü  Southern Africa: South Africa Dependency Threatens Zimbabwe's Economy

ü  Namibia: Minister Blames Supermarkets for Over-Reliance On SA

ü  Uganda: Entebbe, Kabaale Airports Want More Land for Expansion

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Hong Kong: US issues warning on business risks

The US has issued a warning to firms over the risks of doing business in
Hong Kong after China imposed a new national security law there last year.

 

A new business advisory tells multinational firms that they are subject to
the laws and that their people could be arrested under them.

 

Other risks may include having to surrender data to Chinese authorities.

 

President Biden said on Thursday that "the situation in Hong Kong is
deteriorating".

 

Ahead of the business advisory being issued by the departments of State,
Treasury, Commerce and Homeland Security, the president warned: "The Chinese
government is not keeping its commitment that it made, how it would deal
with Hong Kong".

 

The national security law was introduced in Hong Kong last year after
protests over an extradition law turned violent and evolved into a broader
anti-China and pro-democracy movement. It makes it easier to punish
protesters and reduces the city's autonomy.

 

The advisory covers several other areas including freedom of the press, data
privacy and sanctions imposed by both sides.

 

As part of the update on Friday, the US also announced sanctions against
seven Chinese officials over what it describes as an "erosion of the rule of
law".

 

Jeff Moon, a former assistant US trade representative who worked on Hong
Kong policy during the Obama administration, told the BBC: "I think this is
quite serious.

 

"I think it's a reflection of the dramatic changes that have gone on in Hong
Kong."

 

He pointed out that hundreds of American companies have a presence in Hong
Kong. According to the American Chamber of Commerce in the city, about 280
companies have regional headquarters there.

 

It said in a statement that it was aware "of an increasingly complicated
geopolitical environment and its risks".

 

"We are here to support our members to navigate those challenges and risks
while also capturing the opportunities of doing business in this region," it
said.

 

Businesses with operations or staff in Hong Kong should consider potential
reputational and legal risks, the advisory says.

 

Mr Moon added that although Hong Kong is an incredibly valuable economic
hub, the so-called "one country, two systems" principle which has come under
pressure means its appeal to foreign firms will have changed.

 

However, the advisory does not recommend businesses withdraw from the area.

 

But Jamieson Greer, an international trade lawyer and former chief of staff
to US Trade Representative Bob Lighthizer during the Trump administration,
told the BBC that companies may consider leaving as a result.

 

"China and the US are essentially now telling financial institutions,
private equity, other financing institutions, that they may have to choose
one side or the other," he said.

 

That could result in a separation of financial supply chains around the
world, he warned.

 

Beijing said it would follow up with a "firm response" to any action taken
by Washington.

 

"We urge the US side to stop interfering in the Hong Kong issue and China's
internal affairs in any form," Chinese Foreign Ministry spokesman Zhao
Lijian told a news conference on Friday.

 

It comes several days after the US warned businesses about having links to
China's Xinjiang region, citing alleged abuses of the mostly Muslim Uyghur
minority group and surveillance there.

 

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", it said.

 

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

 

 

 

Covid: Fully jabbed arrivals from France must still quarantine

Fully jabbed travellers returning to England and Wales from France will
still have to quarantine from Monday.

 

>From 19 July, adults who have been double jabbed in the UK arriving from
amber list countries will not need to isolate for 10 days.

 

But the government said the easing would not apply to France due to
"persistent" cases of the Beta variant, first identified in South Africa.

 

There are concerns vaccines may not work as well against the Beta variant.

 

Some 3.4% of cases recorded in France in the past four weeks were the Beta
variant, according to GISAID, a global open source database.

 

The more infectious Delta variant - first identified in India - accounts for
almost all new cases in the UK.

 

Health Secretary Sajid Javid said: "We have always been clear that we will
not hesitate to take rapid action at our borders to stop the spread of
Covid-19 and protect the gains made by our successful vaccination programme.

 

"With restrictions lifting on Monday across the country, we will do
everything we can to ensure international travel is conducted as safely as
possible, and protect our borders from the threat of variants."

 

Travel firms have criticised the move, accusing the government of causing
confusion.

 

Tim Alderslade, chief executive of industry group Airlines UK, said: "These
random rule changes make it almost impossible for travellers and industry to
plan ahead, and can only further undermine consumer trust at the very peak
of the summer season."

 

The government announcement means that anyone who has been in France in the
previous 10 days will need to quarantine on arrival to England in their own
accommodation and will need a day two and day eight test, regardless of
their vaccination status.

 

This includes any fully vaccinated individual who transits through France
from either a green or another amber country.

 

But ministers indicated that Eurostar passengers on services travelling
through France would not need to quarantine if their train did not stop in
the country.

 

Existing amber list exemptions for key workers such as hauliers will remain
in place.

 

Travellers from France will still have the option of shortening their
quarantine period through the Test to Release scheme - if they pay for a
test on day five and are negative.

 

For arrivals from other amber list countries, the requirement to quarantine
is being scrapped for the fully vaccinated and under-18s from Monday in all
parts of the UK.

 

Each UK nation sets its own travel rules.

 

A Scottish government spokesperson said ministers were "considering the best
approach" for arrivals from France "as we look to adopt a four nation
approach on international travel, where possible".

 

Wales said it would be following the change set by England, while Northern
Ireland is yet to announce its intention.

 

Travel trade body Abta said the changes will delay "any meaningful recovery
for the industry", adding that financial support needed to be given to the
sector.

 

Johan Lundgren, chief executive of EasyJet, said the government was "making
it up as they go along and causing confusion and uncertainty".

 

"It is not backed up by the science or transparent data and this move pulls
the rug out from under our customers who have already travelled to France or
who are booked to travel there and so it is them I feel for," he added.

 

Eurotunnel said the announcement from the government was "disappointing...
so close to the school holidays and so soon after they had confirmed that
travel to France was safe".

 

Ferry operator DFDS said it was surprised by the change but it would
continue to work with the government to "play our part in keeping the UK
safe".

 

Tory MP Henry Smith, who chairs the All-Party Parliamentary Group for the
Future of Aviation, said the announcement was "a real setback to
international travel".

 

"We all expected that the traffic light system would provide much-needed
certainty yet our current approach has only delivered confusion, which
continues to prevent any meaningful recovery for our aviation, travel and
tourism sectors," he said.

 

Labour said the move had created "complete chaos".

 

Shadow home secretary Nick Thomas-Symonds said: "In effect the government
has announced yet another category for travel and they've done it on a
Friday evening... It is travellers and the travelling industry that is
paying the price."

 

Georgina Thomas, a nurse from Buckinghamshire, is one of those affected by
the change.

 

The 32-year-old has been visiting her parents in the countryside between La
Rochelle and Bordeaux for the last three weeks with her baby daughter.

 

"I'm frustrated with the inconsistent approach the government are taking, it
doesn't all appear logical," she told the PA news agency.

 

"If a quarantine is necessary then so be it but I'm confident that my risk
will be higher when I return to the UK."

 

Ms Thomas, who is still on maternity leave, added: "It will be a long 10
days but we are the fortunate ones, I understand that, plenty will think we
shouldn't be travelling anyway."

 

Debbie, from Essex, who did not wish to share her second name, runs a chalet
with her family in France and said her business would take a financial hit
because of the change in rules.

 

"Bookings were just starting to pick up and we've been helped by European
guests but this affects our vaccinated UK guests," she said.

 

"It seems to me that this is political game-playing... it's like watching a
tennis match and the people are the ball."

 

Anne, a British citizen living in Paris who did not wish to give her second
name, has not seen her family in 18 months, with her parents yet to meet
their granddaughter, who was born in Paris last autumn.

 

The 31-year-old told the BBC she had booked their trip to London for late
August on Friday morning - just hours before the announcement was made.

 

She also suggested most of the Beta variant cases were not found in mainland
France.

 

"How can the government encourage non vaccinated people in the UK to stop
wearing masks and start going clubbing, yet oblige fully vaccinated
travellers from France to quarantine?," Anne added.

 

Transport Secretary Grant Shapps said: "Whilst we are committed to
continuing to open up international travel safely, our absolute priority is
to protect public health here in the UK."

 

There had been reports the government was considering adding France to the
red list for travel.

 

Only UK or Irish nationals or UK residents are allowed to travel from red
list countries and they must then quarantine in a government-approved hotel
for 10 days, at a cost of £1,750 for one adult.

 

It comes just two days after the government announced popular holiday
destinations Ibiza, Majorca, Menorca and Formentera would be moved to the
amber list.

 

In a separate development, Bulgaria has announced a ban on UK travellers
entering the country, amid rising cases.

 

>From Monday, only Bulgarian nationals, long-term residents and their
immediate family members will be eligible to enter from the UK.-BBC

 

 

 

Drugs giant GSK's plan to create up to 5,000 jobs in new UK hub

Drugs giant GlaxoSmithKline (GSK) is launching a development plan that is
set to create up to 5,000 new jobs.

 

The company is looking to extend its facility in Stevenage, Hertfordshire,
where it currently conducts research and development.

 

GSK says the plan could create thousands of highly skilled jobs in the next
five to 10 years.

 

The plan involves selling off a third of the 92 acre site, which it hopes
will unlock £400m of new investment.

 

Stevenage is already one of GSK's two global research and development hubs,
and hosts the UK's largest work into cell and gene therapy.

 

The development of the new site is expected to begin in 2022. The new campus
- which will sit next to GSK's existing site at Stevenage - could ultimately
deliver 100,000 square metres of new floor space for commercial life
sciences research and development.

 

"The past 18 months has shown the UK life sciences sector at its best and
the UK has recently unveiled an ambitious 10-year vision for the UK life
sciences sector," said GSK senior vice president Tony Wood.

 

"Our goal is for Stevenage to emerge as a top destination for medical and
scientific research by the end of the decade," he added.

 

GSK has come under pressure recently from shareholders to reconfigure its
businesses amid criticism over its performance.

 

The company is a leading vaccine maker, but has been late to develop one for
Covid-19. Its Covid vaccine, which is being developed with France's Sanofi,
is still undergoing trials.

 

GSK boss Emma Walmsley is selling the company's consumer healthcare
division, which makes big-brand products including Sensodyne and Panadol.

 

That move is designed to let it focus on developing new drugs and
vaccines.-BBC

 

 

 

Is the Bank really hooked on quantitative easing?

It is the biggest economic intervention of the past two decades. It has had
a significant impact on the wealth of millions of Brits. And its deployment
may have helped save lives during the pandemic. But it is rarely debated -
or even really even understood by politicians.

 

"It" is, of course, quantitative easing.

 

That's when the Bank of England and other global central banks buy up
hundreds of billions of pounds in government debt using newly-created
electronic money.

 

Will creating billions of pounds save your job?

But on Friday, parliamentarians have warned that the Bank is becoming
addicted to QE, which they call a "serious danger to the long-term health of
the public finances".

 

The House of Lords economic committee heard from central bankers around the
world about a policy that was deployed in Japan, the Eurozone and the US, in
the wake of the financial crisis and then again during the pandemic.

 

With the Bank set to own £895bn of debt - almost entirely in government
gilts - peers have said it should be subject to more scrutiny.

 

They argue that the policy has undoubtedly pushed up prices of assets such
as houses - increasing wealth inequalities by transferring wealth away from
non-homeowners and to those who have a property. However the Bank has said
that young people benefitted from QE because it shortened the recessions.

 

But the Lords' report argues that during Covid, the Bank went further. It
was "widely perceived" to have bought up the debts exactly as required by
Government, matching the size and speed of borrowing to fund huge spending
bills, it said. That risks undermining the Bank's independence from
government and its fight against inflation.

 

The Bank's answer to this charge is? Essentially, it says that it will
eventually sell the government bonds it has bought since the beginning of
the crisis. And while QE has undoubtedly helped keep government borrowing
costs very low, it says the actual aim of the policy is to support the
economy and hit its inflation target of 2%.

 

But Peers are unconvinced. They have demanded greater transparency around
talks between the Treasury and the Bank of England about how any losses from
the programme will be financed.

 

'Clear plan'

They also want "a clear plan on how QE will be unwound" and, they say, "this
plan must be made public".

 

Until now the noises have been rather vague on this issue. In theory, the
unwinding of such the policy could significantly increase long-term interest
rates paid by companies and homeowners. But if it is ignored forever, Peers
fear the inevitable result will be prolonged inflation.

 

This is an argument few want to have right now, and one that has been
delayed because it can be delayed. T

 

This influential report puts some pressure on the Bank of England for
answers over a little-understood policy that has affected the entire
population.

 

More than almost all Cabinet decisions.-BBC

 

 

 

U.S. officials look to address transportation supply chain issues

(Reuters) - U.S. Transportation Secretary Pete Buttigieg is looking at ways
to address supply chain disruptions - from clogged ports to addressing the
shortage of truck drivers.

 

President Joe Biden issued an executive order in February on supply chain
issues.

 

In June, the White House unveiled a Supply Chain Disruptions Task Force led
by Buttigieg and the secretaries of Commerce and Agriculture "to provide a
whole-of-government response to address near-term supply chain challenges
... (and) to diagnose problems and surface solutions—large and small, public
or private—that could help alleviate bottlenecks and supply constraints."

 

On Thursday, Buttigieg held a virtual roundtable on congestion at the Los
Angeles and Long Beach ports that included the Federal Maritime Commission
chair, Los Angeles Mayor Eric Garcetti and other senior U.S. officials to
look at ways of reducing congestion at ports.

 

"For our economy to fully recover, we now need our vital supply chains to
operate smoothly and without avoidable congestion," Buttigieg said.

 

Approximately 40% of all containerized freight flowing through the United
States arrives or departs through Los Angeles and Long Beach ports.

 

The California State Transportation Agency said on Thursday it will hold a
September forum to examine options to improve cargo movement.

 

Last week, Buttigieg and Labor Secretary Marty Walsh held a separate meeting
with trucking industry and labor groups to discuss driver recruitment and
retention.

 

The department said turnover rates are over 90% for large long haul
carriers. This driver turnover, coupled with the impact of COVID-19, has
helped lead to supply chain disruptions.

 

American Trucking Associations (ATA) said projections show the industry will
need to hire about 1.1 million new drivers over the next decade, or an
average of nearly 110,000 per year, to keep pace with retirements and
growing transportation needs.

 

ATA's Bill Sullivan said the group is working with the federal government to
"make our supply chain more resilient and grow our workforce."

 

The Thomson Reuters Trust Principles.

 

 

 

Cash-flush Americans lift U.S. retail sales; shortages depress auto
purchases

(Reuters) - U.S. retail sales unexpectedly increased in June as demand for
goods remained strong even as spending is shifting back to services,
supporting expectations that economic growth accelerated in the second
quarter.

 

The rebound in sales reported by the Commerce Department on Friday was
despite purchases of motor vehicles declining for a second straight month
due to a lack of supply caused by a global semiconductor shortage. Sales
were also flattered by higher prices resulting from supply constraints as
COVID-19 vaccinations, low interest rates and massive fiscal stimulus fuel
demand.

 

"Growing pains from reopening are on the supply side," said Chris Low, chief
economist at FHN Financial in New York. "Inflation reports earlier this week
confirm firms are still struggling to keep up with this demand, but another
month of high retail spending should give companies confidence that consumer
demand is not slowing down anytime soon."

 

Retail sales rose 0.6% last month. Data for May was revised down to show
sales falling 1.7% instead of declining 1.3% as previously reported.
Economists polled by Reuters had forecast retail sales dropping 0.4% in
June.

 

Sales advanced 18.0% compared to June last year and are now 18.0% above
their pre-pandemic level. Retail sales mostly capture the goods component of
consumer spending, with services such as healthcare, education, travel and
hotel accommodation making up the remaining portion. Restaurants and bars
are the only services category in the retail sales report.

 

Demand shifted to goods like electronics and motor vehicles during the
pandemic as millions of people worked from home, took online classes and
avoided public transportation. Spending is now rotating back to services
like travel and entertainment.

 

Though worries about inflation hurt consumer sentiment this month, spending
was likely to remain underpinned by record savings and rising wealth. The
University of Michigan's consumer sentiment index fell to 80.8 early this
month from 85.5 in June. The survey's inflation expectations over the next
12 months shot up to 4.8% from 4.2% in June. 

 

The government reported this week that consumer prices increased by the most
in 13 years in June, while producers prices accelerated. 

 

"Consumers are flush with cash and their credit card utilization rates and
debt burdens have dropped," said Scott Hoyt, senior economist at Moody's
Analytics in West Chester, Pennsylvania. "Lack of available cash or credit
to spend is as small a restraint on spending as it ever is. Combined with
massive forced saving, wealth is likely higher than it would have been
without the pandemic."

 

Customers visit Macy's flagship store in New York City, New York, U.S., May
20, 2021. REUTERS/Eduardo Munoz

Households accumulated at least $2.5 trillion in excess savings during the
pandemic. Starting this month through December some households will receive
income under the expanded Child Tax Credit program, which should help
middle- and lower-income households to maintain spending.

 

Stocks on Wall Street were trading lower. The dollar gained versus a basket
of currencies. U.S. Treasury yields rose.

 

BROAD GAINS

 

Receipts at auto dealerships fell 2.0% after declining 4.6% in May. But
sales at clothing stores increased 2.6%, likely as people venturing outside
their homes spruced up their wardrobes. Sales at services stations also
rose, reflecting increased mobility and higher gasoline prices.

 

Consumers increased spending at restaurants and bars, leading to a 2.3% rise
in receipts. Sales at restaurants and bars increased 40.2% compared to June
2020. Receipts at food and beverage stores gained 0.6%.

 

Online retail sales rose 1.2%, a modest increase given Amazon's Prime Day,
which was emulated by other retailers. Sales at electronics and appliance
stores rose 3.3%.

 

But receipts at furniture stores fell 3.6%. Sales at sporting goods, hobby,
musical instrument and book stores dropped 1.7%. Sales at building material
stores fell 1.6%.

 

"Last summer parents were trying to get their hands on basketball hoops and
trampolines, and spending more time working in the yard or fixing up the
house," said Tim Quinlan, a senior economist at Wells Fargo in Charlotte,
North Carolina. "This summer, the kids are headed back to camp or the family
is ready to hit the road."

 

Excluding automobiles, gasoline, building materials and food services,
retail sales increased 1.1% last month after a downwardly revised 1.4%
decrease in May. These so-called core retail sales correspond most closely
with the consumer spending component of gross domestic product. They were
previously estimated to have dropped 0.7% in May.

 

"Heading into the back-to-school season, we expect record sales as families
purchase electronics, shoes and backpacks for in-person learning this year,"
said Matthew Shay, president of the National Retail Federation.

 

Despite the downward revision to May core retail sales, economists remained
steadfast in their belief that consumer spending, which accounts for more
than two-thirds of U.S. economic activity, logged double-digit growth in the
second quarter. Consumer spending grew at an 11.4% annualized rate in the
first quarter.

 

Gross domestic product growth estimates for this quarter are around a 9%
rate, which would be an acceleration from the 6.4% pace notched in the first
quarter. Economists believe the economy could achieve growth of at least 7%
this year. That would be the fastest growth since 1984. The economy
contracted 3.5% in 2020, its worst performance in 74 years.

 

The Thomson Reuters Trust Principles.

 

 

Senator asks airlines about worker shortages after billions in U.S. bailouts

(Reuters) - The chair of the U.S. Senate Commerce Committee has asked the
chief executives of six airlines including American Airlines (AAL.O), Delta
Air Lines (DAL.N), Southwest Airlines (LUV.N) and JetBlue Airways (JBLU.O)to
explain reported worker shortages despite receiving billions in pandemic
bailouts.

 

Congress approved three separate rounds of taxpayer funding totaling $54
billion to pay much of U.S. airlines' payroll costs through Sept. 30 as a
result of COVID-19 - as well as $25 billion in low-cost government loans.

 

Senator Maria Cantwell, a Democrat, sent the airlines letters on Friday
asking for answers to detailed questions about "recent reports of workforce
shortages, flight cancellations, and delays, creating havoc and frustrating
consumers as more Americans resume travel."

 

The Transportation Security Administration said traffic hit almost 2.2
million passengers on Sunday, the highest daily total since February 2020.

 

In the letters, Cantwell said at best each airline "poorly managed its
marketing of flights and workforce as more people are traveling, and, at
worst, it failed to meet the intent of tax payer funding and prepare for the
surge in travel that we are now witnessing."

 

Airlines were not allowed to issue involuntary layoffs or cut worker pay as
part of government assistance.

 

Cantwell asked the airlines, which also included Republic Airways and
Allegiant Airlines (ALGT.O), for answers about workforce management, if they
have exhausted all U.S. payroll assistance and steps to address anticipated
or current labor shortages due to increased consumer flight demand this
year.

 

American Airlines in June said it would cancel around 1% of its flights in
July, while Southwest canceled hundreds of flights last month after computer
and weather issues.

 

Southwest said it was the "only major airline to maintain service at every
U.S. airport we served prior to the pandemic" and did not layoff or furlough
any staff.

 

"We were staffed for what we’re flying and we’re flying for what we
staffed," a spokeswoman said.

 

American and Allegiant declined comment. Republic and JetBlue did not
respond to a request for comments.

 

Delta pointed to Chief Executive Ed Bastian's comments on Wednesday that
"the challenges of getting our airline fully back to the service level our
customers expect and deserve is daunting in light of the huge surge in
demand that we are experiencing."

 

The Thomson Reuters Trust Principles.




U.S. issues advisory to businesses warning of Hong Kong risks

(Reuters) - The Biden administration on Friday issued an advisory to warn
U.S. businesses about risks to their operations and activities in Hong Kong
after China's imposition of a new national security law there last year.

 

The advisory from the departments of State, Treasury Commerce and Homeland
Security warns businesses in Hong Kong that they are subject to the
territory's laws, including the national security law, under which foreign
nationals, including one U.S. citizen, have been arrested.

 

It says businesses face risks associated with electronic surveillance
without warrants and the surrender of corporate and customer data to
authorities.

 

It adds that individuals and businesses should be aware of potential
consequences of engaging with sanctioned individuals or entities and warns
that they could face Chinese retaliation for complying with U.S. and other
international sanctions.

 

The advisory comes just over a year after former President Donald Trump
ordered an end to Hong Kong's special status under U.S. law to punish China
for what he called "oppressive actions" against the former British colony.

 

The advisory says businesses should consider the potential reputational,
economic, and legal risks of maintaining a presence or staff in Hong Kong,
and should carry out due diligence.

 

"Developments over the last year in Hong Kong present clear operational,
financial, legal, and reputational risks for multinational firms," a senior
Biden administration official said.

 

"The policies which the PRC government and the Government of Hong Kong have
implemented undermine the legal and regulatory environment that is critical
for individuals and businesses to operate freely and with legal certainty in
Hong Kong," the official said, using the acronym for the People's Republic
of China.

 

The warning came days after Washington strengthened its warnings to
businesses about the growing risks of having supply chain and investment
links to China's Xinjiang region, citing forced labor and human rights
abuses there.

 

Last week, the administration added 14 Chinese companies and other entities
to its economic blacklist over alleged human rights abuses and high-tech
surveillance in Xinjiang. read more

 

On Thursday, sources told Reuters Washington was preparing to impose
sanctions on Friday on seven Chinese officials in its latest effort to hold
the Chinese government accountable for what Washington calls an erosion of
rule of law in the former British colony that returned to Chinese control in
1997. read more

 

The Thomson Reuters Trust Principles.

 

 

Biden battles Russian hacking groups with restrictions on IT firms

(Reuters) - The United States on Friday took a new stab at Russia's
cybersecurity industry, restricting trade with four information technology
firms and two other entities over "aggressive and harmful" activities -
including digital espionage - that Washington blames on the Russian
government.

 

A Commerce Department posting said the six entities were sanctioned by the
U.S. Treasury Department in April, which targeted companies in the
technology sector that support Russian intelligence services.

 

Their addition to the Commerce Department's blacklist means U.S. companies
cannot sell to them without licenses, which are seldom granted.

 

The announcement follows April's sanctions, which were aimed at punishing
Moscow for hacking, interfering in last year's U.S. election, poisoning
Kremlin critic Alexei Navalny and other alleged malign actions - allegations
the Kremlin denies.

 

They come as the United States is responding to a drumbeat of digital
intrusions blamed on Russian government-backed spies and a spate of
increasingly disruptive ransomware outbreaks blamed on Russian
cybercriminals.

 

The entities added to the blacklist are Aktsionernoe Obshchaestvo AST;
Aktsionernoe Obshchestvo Pasit; Aktsionernoe Obshchestvo Pozitiv
Teknolodzhiz, also known as JSC Positive Technologies; Federal State
Autonomous Institution Military Innovative Technopolis Era; Federal State
Autonomous Scientific Establishment Scientific Research Institute
Specialized Security Computing Devices and Automation (SVA); and Obshchestvo
S Ogranichennoi Otvetstvennostyu Neobit.

 

Era is a research center and technology park operated by the Russian
Ministry of Defense; Pasit is an IT company that did research and
development in support of Russia's Foreign Intelligence Service's malicious
cyber operations; SVA is a Russian state-owned institution that also
supported malicious cyber operations; and Russia-based IT security firms
Neobit, AST and Positive Technologies have clients that include the Russian
government, according to the United States.

 

Positive Technologies said the Commerce Department's announcement had no new
information and that the company engaged in the "ethical exchange of
information with the professional information security community" and had
never been involved with an attack on U.S. infrastructure.

 

The other entities either did not immediately respond to requests for
comment or could not be reached.

 

The restrictions against the Russian technology industry have been in the
works for months. The same day that the Treasury sanctions were announced,
then-Assistant Attorney General John Demers told reporters that officials
were in the process of evaluating dozens of Russian companies for possible
referral to the Commerce Department.

 

Demers said investigators would be looking at "a known connection between a
particular company and the Russian intelligence services" as they evaluated
whether a company was a risk. Non-Russian companies that had back office
operations in Russia would also be examined, he said.

 

The United States adds entities to the Commerce Department's trade blacklist
that it says pose a risk to U.S. national security or foreign policy
interests.

 

The Thomson Reuters Trust Principles.

 

 

 

Vineyard Wind strikes labor union pact for U.S. offshore wind farm

(Reuters) - Vineyard Wind on Friday announced a deal to use union labor to
help construct what will become the nation's first major offshore wind
project off the Massachusetts coast near Martha's Vineyard.

 

The labor agreement with the Southeastern Massachusetts Building Trades
Council covers 500 jobs, most of which will go to local workers, the company
said in a statement. It also includes hiring targets for women and people of
color.

 

The pact is the first in the nascent U.S. offshore wind industry and comes
as President Joe Biden, a Democrat, has pledged that his clean energy and
climate change agenda will create millions of good-paying union jobs.

 

Biden's administration approved the Vineyard Wind project in May, billing it
as the launch of a new domestic energy industry that will help eliminate
emissions from the power sector.

 

Dennis Arriola, chief executive of Avangrid, which is co-developing Vineyard
Wind with Denmark's Copenhagen Infrastructure Partners, said in a statement
that the agreement "sets a strong precedent" in the new U.S. industry.

 

The building council represents thousands of workers on Massachusetts' South
Coast, Cape Cod and islands. Turbines for the project, which will be located
15 miles (24 km) off the coast of Martha's Vineyard, will leave the mainland
from the port city of New Bedford, Massachusetts.

 

For the first several years at least, most of the manufacturing jobs
stemming from the U.S. offshore wind industry will be in Europe.

 

Vineyard Wind project is intended to create enough electricity to power
400,000 homes in New England. The project will begin delivering electricity
to the grid in the second half of 2023 and initial construction could begin
as soon as this year.

 

The project is ultimately expected to create 3,600 full-time jobs over its
lifetime.

 

“Using a project labor agreement to construct the country’s first
industrial-scale offshore wind farm guarantees union protections for workers
on this project, the work stays local, and the workers represent the diverse
communities they come from,” Kristin Wozniak, a member of International
Brotherhood of Electrical Workers Local 223, said in a statement.

 

The Thomson Reuters Trust Principles.

 

 

 

Nigeria Inflation Falls Again As Food Price Hike Slows

"This implies that prices continued to rise in June 2021 but at a slightly
slower rise than it did in May 2021," NBS said.

 

Nigeria's inflation rate fell for the third consecutive month in June to
17.75 per cent from 17.93 per cent recorded in May, amid an accelerating
increase in food prices, the<a target="_blank"
href="https://www.nigerianstat.gov.ng/"> National Bureau of Statistics</a>
said.

 

The statistics office said Friday that the prices of goods and services,
measured by the Consumer Price Index (CPI) increased by 17.75 per cent in
June 2021 when compared to May 2021.

 

This is 0.18 percentage points lower than the rate obtained a month earlier.

 

"This implies that prices continued to rise in June 2021 but at a slightly
slower rise than it did in May 2021," NBS said.

 

On a month-on-month basis, the headline index increased by 1.06 per cent in
June 2021. This is 0.05 percentage points higher than the rate recorded in
May 2021 (1.01 per cent).

It said the composite food index rose by 21.83 per cent in June 2021
compared to 22.28 per cent in May 2021.

 

This implies that food prices continued to rise in June 2021 but at a
slightly slower speed than it did in May 2021.

 

According to the NBS, this rise in the food index in June was caused by
increases in the prices of bread and cereals, potatoes, yam and other
tubers, milk, cheese and eggs, fish, soft drinks, vegetables, oils and fats
and meat.

 

It added that month-on-month basis, the food sub-index increased by 1.11 per
cent in June 2021, up by 0.06 per cent points from 1.05 per cent recorded in
May 2021.

 

"The average annual rate of change of the Food sub-index for the twelve
months ending June 2021 over the previous twelve-month average was 19.72 per
cent, 0.54 per cent points from the average annual rate of change recorded
in May 2021 (19.18 per cent)," it said.-Premium Times.

 

 

 

Southern Africa: South Africa Dependency Threatens Zimbabwe's Economy

The violent events that unfolded in South Africa this past week present
renewed purpose for some serious soul searching by Zimbabwe's economic
decision makers on how to model the economy out of the dependency on its
neighbor to the south for raw materials and other essentials, economic
experts have said.

 

South Africa's KwaZulu Natal and Gauteng provinces-two strategic economic
areas- burst into mayhem this week as looters ransacked major retail shops,
banks and warehouses with loses to businesses expected to peak into billions
of Rands.

 

For Zimbabwe, which relies heavily on South Africa for trade and mainly for
its imports, the cost to business could be even dire in coming weeks.

 

"Our industries are exposed by the developments in South Africa," the
Confederation of Zimbabwe Industries (CZI) said.

 

In a graphic illustration, the industry body said, "Zimbabwe sources 58
percent of its raw materials from South Africa, with Europe at a distant
second with 13 percent, China 11 percent, the rest of Asia at 8 percent,
other SADC states at 7 percent and the rest of the world supplying the
rest."

During the fourth quarter of 2020, Zimbabwe's exports were mainly destined
for South Africa (44.5%), the United Arab Emirates (20.2%), Mozambique
(8.7%) and other jurisdictions.

 

Zimbabwe is a net importer of commodities such as grain, fruits, milk,
pharmaceuticals, clothing, industrial chemicals, and motor spare parts among
others from South Africa.

 

Worryingly, most of these commodities can be locally produced but due to the
significant decline in industrial activity over the years, imports have
flooded the market.

 

Zimbabwe's industrial output has been far from satisfactory owing to a host
of challenges that includes weak capacity, antiquated machinery and low
capitalization among others.

Most raw materials for local industries are sourced from South Africa owing
to weak agriculture output.

 

This has been worsened by macro-economic imbalances such as currency
volatility, high cost of production and weak consumer uptake.

 

"We have to get serious about South African dependency. Dependency on S.A is
a challenge and could present regional contagion and we should localize
production," industrialist, Busisa Moyo told state owned online television
this week.

 

"A lot of our supply chains are linked closed to S.A. About 40 to 50 percent
of our imports come from S.A in dollar terms that close to US$ 2 to 2.5
billion per annum in imports," he said.

 

The N3 and N1 highways - all located along hotspot areas of looting in the
past week link the port of Durban with Zimbabwe.

 

Zimbabwe's imports from far afield the continent come through Durban as well
and are transported via the N1 and N3 routes.

 

Already some South African suppliers have notified local businesses of
supply challenges.

 

"We have already received notices from suppliers based in Durban and other
parts of Durban that they are unable to move raw materials (due to
disturbances). This is coming on the back of COVID-19 where we were trying
to recover the lost ground in 2020. So this just exacerbates the economic
situation. Zambia is probably in the same situation, Malawi and other
surrounding countries as well," said Moyo.

 

Although the economic impact of this week's events is yet to be fully
evaluated, there are fears it could worsen the already dire economic
situation in both countries which are still reeling from the effects of the
COVID-19 pandemic.-263Chat.

 

 

 

Namibia: Minister Blames Supermarkets for Over-Reliance On SA

Namibia largely depends on South Africa for most goods due to supermarkets
stocking mostly South African goods.

 

This is according to Namibia's minister of industrialisation and trade,
Lucia Iipumbu.

 

Changing the current trend would require a complete overhaul of trading
rules and the transformation of the agricultural sector, she says.

 

This comes against the backdrop of unrest in South Africa, raising fears of
disrupted distribution chains.

 

According to the ministry, Namibia imports 80% of its products from South
Africa.

 

"The ripple effect of this disruption will spill over into Namibia in the
short to medium term," Iipumbu says.

 

Several retailers in the country have calmed these fears, saying they are
well stocked.

 

The ministry, however, says considering the riots and the devastating impact
of Covid-19, a further turn of events has a high likelihood to cause further
price increases on basic import commodities.

"It greatly affects the supply of goods to Namibia, which will result in
food shortages, and subsequently prices will increase," the minister says.

 

Namibia also relies on South Africa for pharmaceuticals and related products
which are critical given the Covid-19 pandemic, she says.

 

Should these expected shortages materialise, it would place the country in a
dire situation which could cause panic.

 

Iipumbu says the disruption gives the country's policymakers and producers
the opportunity to enhance production if consumers would start buying
locally.

 

"Local productive capacities in terms of food can be leveraged to fill some
gaps, while the situation returns to normality in our neighbouring country,"
she says.

Iipumbu says her ministry has been promoting the 'Buy Local, Grow Namibia'
campaign to encourage a shift in consumer behaviour.

 

"It is through efforts such as this one that Namibian will release the
importance of procuring locally produced products, which would promote
productive capacity," the minister says.

 

Agribank senior research and product development specialist Indileni
Nanghonga says food shortages would be concerning.

 

She says analysis shows that more than 70% of Namibia's food consumption is
imported from South Africa - partly because local production is not
sufficient to meet local demand.

 

To ensure sufficient supply, shortages are always supplemented by imports
from South Africa.

 

To reduce dependence on South Africa, Nanghonga says the country would need
to find another trade partner to ensure that local demand is met.

 

She says this would still expose the country to external shocks and trade
volatility.

 

Secondly, she advises the enhancement of local production to ensure
sufficient local supply of agricultural produce.

 

Nanghonga says increasing local production alone would not be sufficient
unless it is followed by an increase in the local procurement of
agricultural produce.

 

Covid-19 and the fear of trade volatility as a result of the current unrest
in South Africa creates an opportunity for Namibia to understand and
identify vulnerabilities in food production and supply-chain systems, she
says.

 

"Identifying necessary investments and reforms to further accelerate
transformation in the food and agriculture sector will be crucial in
building resilience," she says.-Namibian.

 

 

 

Uganda: Entebbe, Kabaale Airports Want More Land for Expansion

Uganda Civil Aviation Authority (UCAA) has asked government to acquire more
land for the expansion of Entebbe and Kabaale airports.

 

"This time we want to expand but we have difficulty in acquiring land; even
upcountry. Even where we think we have compensated owners, people continue
to encroach. For example in Arua, Tororo, Soroti and Kabaale," said the Ag.
Director General UCAA Mr Fred Bamwesigye.

 

He told Works and Transport ministers who were vising Entebbe International
Airport early this week.

 

"I want to say this without any fear of contradiction; land offices aren't
really up to speed with this matter because we think that a government
facility like this should be supported by everybody since it's a public
facility but we have challenges," he added.

According to Mr Richard Mujungu Ruhesi, the director Air Navigation
Services, there's inadequacy of land yet when the master plan was done, the
requirement for land for the airport expansion was necessary for the airport
to locate first as an orientation and then everything else would follow.

 

"The airport master plan recommended five square kilometers for UCAA within
the Kabaale industrial park. This land is required for first phase of the
construction and future infrastructure development since. The airport is
planned to serve as the alternative to Entebbe international airport. As per
Uganda National Oil Company, they said the land available for the airport in
the Kabaale industrial park is 3.22 square kilometers which is inadequate
for future development," he said.

 

However the state minister for works and transport, Mr Musa Ecweru said an
airport is the face of the country and therefore ought to reflect what the
country is.

 

"When you see things that are positive as you land here it makes you want to
summarise Uganda and we have really appreciated the work done by UCAA," he
said.

 

"Tourists use this airport to enter the country and to give us money. We
need to be on alert in case there are any corrupt officials, get rid of them
because these projects can't run when the officials who are corrupt are
there," he said.

 

The overall reported physical progress of the upgrade and expansion of
Entebbe international airport is at 75 percent.-Monitor.

 

 

 

 

 

 

 

 

 


 


 


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
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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
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investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


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