Major International Business Headlines Brief::: 22 July 2021

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Major International Business Headlines Brief::: 22 July 2021

 


 

 


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ü  Opioid crisis: US drug giants reach $26bn settlement

ü  Nord Stream 2: US and Germany reach deal on controversial Russian gas
pipeline

ü  Charity, dating and pet spending booms, says Nationwide

ü  China: Taobao, Weibo fined for illegal child content

ü  BP: Lorry driver shortages closing some sites temporarily

ü  NHS workers in England offered 3% pay rise

ü  'Catastrophic' backlog at driving licence body, warns union

ü  Mozambique: 'Hidden Debts' Trial Set for August

ü  South Africa: Government, Business Commit to Rebuilding SA Economy

ü  Africa: AfCFTA Success Depends On Regional Integration of Public Good -
Report

ü  Tanzania: SMEs Digest - Nagawa Quit Her Job During Lockdown for Urban
Farming

ü  Tanzania: Energy Firm Loses Bid to Block Sh84.2 Billion Tax Assessment

ü  Seychelles: Telecom Network in Seychelles to Undergo Maintenance This
Weekend

ü  Tesla will 'most likely' restart accepting bitcoin as payments, says Musk

ü  Stocks shrug off virus worries; ECB in focus

ü  Coca-Cola leans on early pandemic lessons to prepare for Delta variant
hit

ü  After $27.7 bln deal, Salesforce aims to connect companies via Slack

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Opioid crisis: US drug giants reach $26bn settlement

Four US drugs giants have agreed to pay $26bn (£19bn) to settle claims they
helped fuel an opioid addiction crisis.

 

Under the proposal unveiled by a group of state attorney generals on
Wednesday, three drugs distributors are expected to pay $21bn.

 

Drug-maker Johnson & Johnson (J&J) will pay $5bn over the next five years.

 

The New York attorney general Letitia James said the firms fuelled "the fire
of opioid addiction for more than two decades".

 

In a statement she said: "While no amount of money nor any action can ever
make up for the hundreds of thousands of lives lost or the millions more
addicted to opioids, we can take every action possible to avoid any future
devastation."

 

The proposed agreement would resolve nearly 4,000 claims in federal and
state courts against the four companies, if approved by a significant number
of states and governments.

 

Purdue signs deal with 15 states on opioid payout

Adopting a child in the age of opioids

McKesson, Cardinal Health and AmerisourceBergen were accused of ignoring
shipments of painkillers being diverted to illegal channels, while J&J
allegedly downplayed the the risk of addiction in its marketing materials
for opioids, which the firm stopped making in 2020. All companies have
denied the allegations.

 

Opioids are a class of powerful drugs found in opium poppies that can be
used to block pain signals between the brain and the body.

 

They can be found as legal prescription medications, but they can also be
found as illegal street drugs, such as heroin.

 

Opioid addiction to both legal and illegal drugs has been a serious, ongoing
problem in countries such as the US, which had nearly half a million deaths
from overdoses between 1999 and 2019, according to the US Centers for
Disease Control and Prevention.

 

Most of the money from the settlement will be used on opioid treatment and
prevention programmes.

 

Amounts will be allocated to states according to population size, the number
of overdose deaths and the number of opioids prescribed.

 

In a joint statement, the drugs distributors said they remain "deeply
concerned about the impact the opioid epidemic is having on individuals,
families, and communities across the nation and are committed to being part
of the solution."

 

The four firms added that while they strongly dispute the allegations, they
hoped the settlement would provide "meaningful relief to communities across
the United States".

 

Michael Ullmann, executive vice president and general counsel at drug
manufacturer J&J said: "We recognise the opioid crisis is a tremendously
complex public health issue, and we have deep sympathy for everyone
affected.

 

"This settlement will directly support state and local efforts to make
meaningful progress in addressing the opioid crisis in the United States,"
he added.

 

'Not nearly good enough'

It also calls for the use of data-driven systems to detect suspicious opioid
orders from customer pharmacies and the prohibition of shipping suspicious
orders by drugs distributors.

 

The proposed agreement would also require J&J not to lobby on any
opioid-related issues.

 

States will have 30 days to decide whether or not they want to sign onto the
agreement, while local governments have 150 days.

 

New York announced that it had signed up, but Washington, for example, has
already rejected the settlement.

 

Its attorney general wrote on social media that the settlement was "not
nearly good enough".

 

The state trial against the three drug distributors begins in September,
while a January date is set against J&J.

 

"We look forward to walking into a Washington state courtroom to hold these
companies responsible for their conduct," attorney general Bob Ferguson
tweeted.-BBC

 

 

 

Nord Stream 2: US and Germany reach deal on controversial Russian gas
pipeline

The US says it has reached a deal with Germany to prevent Russia from using
its Nord Stream 2 gas pipeline as political leverage over Europe.

 

The near-complete 1,230km (764 miles) pipeline under the Baltic Sea will
double Russian gas exports to Germany.

 

US official Victoria Nuland said it was "a bad pipeline", but said the deal
envisaged sanctions against Moscow if it tried to blackmail Ukraine.

 

Ukraine says the Nord Stream 2 pipeline threatens its security.

 

The country has been fighting Russian-backed separatists in the east since
2014. Russia also annexed the Crimea peninsula from Ukraine in 2014. Kyiv
fears a full-scale Russian invasion once Nord Stream 2 is fully operational.

 

Ukraine also stands to lose about $3bn (£2.2bn) a year in gas transit fees.

 

Poland is also opposing the pipeline, which runs from Vyborg in Russia under
the Baltic Sea to Lubmin in Germany. Poland says the $10bn project threatens
the security of central and eastern Europe.

 

Russia denies this and describes the project as commercially beneficial for
all involved.

 

Under the terms of the US-German deal, Ukraine will get $50 million in green
energy technology credits and a guarantee of repayment for gas transit fees
it will lose by being bypassed by the pipeline through 2024, according to
the Associated Press.

 

In May, US President Joe Biden's administration waived sanctions on a
company building the pipeline, despite a strong opposition from Republican
lawmakers.

 

Mr Biden's White House opposes the pipeline, but analysts say he is
reluctant to risk a transatlantic rift with Germany at a time when he has
been trying to reach out to European allies.

 

Like its already operational twin Nord Stream, the new pipeline will have
the capacity of 55bn cubic metres of gas per year to Europe.-BBC

 

 

 

Charity, dating and pet spending booms, says Nationwide

Britons spent more money on charity, dating and their pets as Covid
restrictions continued to ease, according to data from Nationwide.

 

Spending on holidays, eating and drinking, leisure, gardening, and clothing
also surged from April to June, the building society said.

 

Contactless and mobile payments also continued to pick up pace, Nationwide
added.

 

However, spending fell in general retailers across the board.

 

The building society looked at hundreds of millions of transactions by its
customers from April to June, and compared them with the previous quarter.

 

By far the biggest surge in spending was on holidays, including a massive
increase in spending on UK campsites and caravan parks, as quarantine
restrictions remained for many foreign destinations.

 

Spending on eating and drinking also surged to more than £1bn as
restrictions on restaurants were lifted.

 

However, general retailers and department stores continued to be hit by the
pandemic, with a massive 91% drop in spending by Nationwide customers.

 

Non-essential spending

Charity shop boom

However, there was a 16% increase in spending on charity - dwarfing the
spending in department stores.

 

This included charity shops and charitable donations, said Nationwide's head
of payments Mark Nalder. The building society expects that trend to
continue.

 

Charity shops saw a huge spike in spending when they were allowed to reopen
on 12 April, with the British Heart Foundation alone taking £1m in a single
day on that Monday, said Charity Retail Association's chief executive Robin
Osterley.

 

"There was a lot of pent up demand that continued on," he said.

 

Sales at charity shops have continued to boom, ranging between 5% and 10%
higher than two years ago.

 

During lockdown people had a chance to reflect on what they really needed,
and so were donating after clear-outs, but they also had a think about how
they wanted to spend their money, Mr Osterley added.

 

"It's all part of people thinking: 'There has to be a better way. We can't
go back to how we were [before the pandemic]'," he said.

 

People who were in a financial position to make a choice were attracted by
the sustainability aspect of buying from charity shops. They also liked the
fact that their money was going to a good cause, he said.

 

There were also people who were struggling financially, and had to buy from
charity shops to make ends meet.

 

Essential spending chart

Online dating

There was also a surge in people looking for romance, as spending on online
dating grew.

 

Between April and June people spent £3.8m, a rise of 5% from the previous
quarter.

 

Britons also showed how much they loved their pets, splurging £124.5m on
gifts and keeping them fed and healthy.

 

Millions of households bought new pets during the pandemic, prompting
lawyers to say that couples should consider a legal agreement over who
should get custody of the pet, in the event of a break-up.

 

But the biggest growth in essential spending was on public transport and
taxis as restrictions eased in the second quarter, followed by motoring and
fuel and car charging.

 

The ways that people paid for goods and services also continued to evolve.

 

Contactless payments, including via mobile phone, were already booming
during the pandemic, and that growth continued in the second quarter.

 

Mobile payments were up 76%, while contactless card payments grew 46%.
Payments were still dominated by debit cards despite slower growth, however.

 

Mr Nalder said that although the growth in contactless payments meant more
convenience for many, he warned that a decline in cash use seen during the
pandemic could become entrenched to the disadvantage of people who rely on
it.-BBC

 

 

 

China: Taobao, Weibo fined for illegal child content

China's internet watchdog has ordered some of the country's biggest online
platforms to remove inappropriate child-related content.

 

Kuaishou, Tencent's messaging tool QQ, Alibaba's Taobao and Weibo have been
summoned by the Cyberspace Administration of China (CAC).

 

CAC says the platforms must "rectify" and "clean up" all illegal content and
has fined them.

 

The announcement comes as Beijing carries out a crackdown on tech firms.

 

In a statement, the CAC said "the operation is focused on solving seven
types of prominent online problems that endanger the physical and mental
health of minors". 

 

The platforms have been given a deadline to take down content that violate
the guidelines and have also been fined, though the statement did not give
details on how long companies had to comply nor the size of the fines.

 

China's major internet firms have come under increasingly close scrutiny
this year as Beijing tightens its grip on the technology industry.

 

Earlier this month, shares in Chinese ride-hailing giant Didi Chuxing
plunged after the CAC ordered online stores not to offer Didi's app, saying
it illegally collected users' personal data.

 

In March, China's State Administration for Market Regulation (SAMR) said it
had fined 12 companies over 10 deals that violated anti-monopoly rules.

 

The companies included Tencent, Baidu, Didi Chuxing, SoftBank and a
ByteDance-backed firm, the SAMR said in a statement.

 

According to state broadcaster CCTV, President Xi Jinping has ordered
regulators to step up their oversight of internet companies, crack down on
monopolies and promote fair competition.-BBC

 

 

BP: Lorry driver shortages closing some sites temporarily

Lorry driver shortages are causing temporary fuel supply issues at some of
BP's petrol stations.

 

The oil firm said shortages of unleaded petrol and diesel had seen a
"handful" of its UK sites close temporarily.

 

However, the oil company said the "vast majority" of shortages were being
"resolved within a day".

 

BP said its supply chain had also been exacerbated by the closure of a
distribution terminal due to staff being told to isolate last week.

 

"We are working hard with our haulier supplier to deliver fuel into sites
and minimise any disruption to our customers. We apologise for any
inconvenience caused," BP said.

 

"Our supply chain has been impacted by the industry-wide driver shortages
across the UK, and was exacerbated by the temporary closure of our Hemel
Hempstead fuel distribution terminal last week because of necessary Covid-19
isolations amongst staff. The terminal is now operating as normal once
again."

 

Lorry drivers are currently in short supply, with the Road Haulage
Association estimating a shortfall of about 60,000.

 

It said some 30,000 HGV driving tests did not take place last year because
of the coronavirus pandemic.

 

Previously, a temporary extension of lorry drivers' working hours was met
with backlash from the industry who said the government is applying a
"sticking plaster" to driver shortage problems.

 

BP's announcement came as retail industry body the British Retail Consortium
(BRC) warned supermarkets were experiencing "minor disruption" due to a
shortage of drivers.

 

Some supermarkets are understood to be suffering shortages of particular
brands. But while customers may not be able to find the exact product they
are after, the same product made by different brands is available.

 

The BRC called on the government to "rapidly increase" the number of HGV
driving tests taking place.

 

The Department for Transport said it is looking to increase testing
capacity.

 

Andrew Opie, director of food and sustainability at the BRC, said
supermarkets were working closely with suppliers to "ensure consumers still
have access" to the same selection of goods.

 

"Government must rapidly increase the number of HGV driving tests taking
place, fill gaps by providing visas for EU HGV drivers, and also look for a
longer-term solution to this issue," he added.

 

Some stores have also reported an increase in workers having to self isolate
due to being "pinged" by the NHS Covid app, but levels are not said to be
near previous peaks in the pandemic.

 

Other sectors are also experiencing staff shortages due to workers needing
to isolate.

 

Royal Mail said in a "limited number of areas" services were being disrupted
due to Covid-related absences.

 

'Plan is confusing'

The shortages in workers comes as the government announced firms can apply
for staff to be exempt from coronavirus self-isolation rules.

 

The government has said there will be no list of critical workers exempt
from isolating rules and exemptions will be "considered on a case-by-case
basis".

 

However, the numbers of those who will be granted exemption outside of the
NHS are expected to be relatively small, and not reach the high tens of
thousands.

 

Rod McKenzie, of the Road Haulage Association, said the government's plan
was "confusing" and felt like "it's been rushed".

 

He said: "Where do you draw the line on lorry drivers, essential workers,
the people in the supply chains? Because most of the people I know in the
supply chain would say 'hang on a sec, I'm an essential worker'."

 

In a letter to the logistics sector, government ministers said they would
consult about "the delegation of off-road manoeuvres" as part of the HGV
test, which they said would boost testing capacity.

 

It added the Department for Transport would also look to into issuing
provisional licences to drive rigid and articulated lorries.

 

Downing Street previously said that the first exemptions around
self-isolation have been given in some critical sectors.-BBC

 

 

 

NHS workers in England offered 3% pay rise

Nurses and other NHS workers in England have been offered a 3% pay rise by
government "in recognition of unique impact of the pandemic" on staff.

 

It comes after heavily criticised proposals made by the Department for
Health and Social Care in March said only a rise of 1% was affordable.

 

All NHS staff in Wales will be offered a 3% rise by the Welsh government.

 

But some health unions opposed the new figure saying it does not reflect the
sacrifices made by staff.

 

They point out the NHS workforce has been under unprecedented pressure.

 

The British Medical Association (BMA), which represents doctors, said the
pay rise was disappointing and that junior doctors and some GPs could miss
out on it altogether.

 

Dr Chaand Nagpaul, of the BMA, said many doctors had not taken annual leave
in the past year and now "face a gruelling year ahead with millions of
patients on waiting lists, and the country in the midst of another Covid-19
wave".

 

Labour's shadow health minister Justin Madders described the new pay rise as
a "U-turn" and called on the government to "make our NHS and key workers
feel supported and valued after all they have done for us".

 

The rise in pay for healthcare workers follows a public sector pay freeze
for 2021-22, announced by the government in November, with exceptions made
for those on salaries under £24,000 and NHS staff.

 

The 3% pay rise is for most NHS staff including nurses, paramedics,
consultants, dentists and salaried GPs and is backdated to April 2021.

 

According to government calculations for the average nurse, this will mean
an additional £1,000 a year, while many porters and cleaners will receive
around £540.

 

'Extraordinary efforts'

Health and Social Care Secretary Sajid Javid said: "NHS staff are rightly
receiving a pay rise this year despite the wider public sector pay pause, in
recognition of their extraordinary efforts.

 

"We will back the NHS as we focus our efforts on getting through this
pandemic and tackling the backlog of other health problems that has built
up."

 

NHS pay rises are negotiated by independent pay-review bodies that look at
evidence from a range of groups before making recommendations to the
government.

 

The pay rise does not include doctors and dentists in training who have
their own separate, multi-year contracts.

 

It was a day of frustration for health unions and their members.

 

There was a widespread expectation that the details would be revealed in a
health minister's statement to the Commons at lunchtime.

 

But MPs were told the government was still considering pay review body
recommendations.

 

Then the announcement came at 18:00 BST, suggesting a frantic afternoon
finalising the deal with the prime minister, chancellor, and health
secretary all self-isolating.

 

Union reaction has been varied with one group acknowledging ministers had
made a significant step up from the original 1% offer.

 

Others though said the 3% on the table was insufficient recognition of the
huge effort of NHS staff during the pandemic.

 

The details will be put to union members in the next few weeks and it will
be hard to predict the response at a time when pressure on the health
service is intensifying because of another Covid surge.

 

Members of the Royal College of Nursing (RCN) gathered in Westminster ahead
of the announcement with placards and banners demanding a 12.5% pay
increase.

 

One of those demonstrating, Kafeelat Adekunle, 55, a community matron with
Guy's and St Thomas' NHS Foundation Trust in London, described the pay rise
as "mad".

 

"I'm not happy," she told the PA news agency. "They're not listening, that's
the whole problem. This is just to try and stop us from doing industrial
action, just to keep us quiet, keep us shushed."

 

Amy Fancourt, an A&E nurse and RCN member, told the BBC: "Morale is
extremely low, there's a lot of people leaving the NHS and there's a lot of
people leaving the health sector more widely.

 

"And I think that is a direct consequence of years of being undervalued, on
top of the extra pressure we faced during the pandemic."

 

Unison general secretary Christina McAnea said the increase, though an
improvement on the initial offer, fell short of what NHS staff deserved.

 

"The government has failed to show staff just how valued they are to us
all," she said, warning some staff may now leave the health service.

 

Unite national officer for health, Colenzo Jarrett-Thorpe, described the 3%
offer as "small step forward on the insulting 1% the government offered in
March".

 

"However, this recommendation in no way recognises the 19% drop in real
earnings that many NHS workers have endured in the last decade, nor the
immense sacrifices that health staff have and are continuing to make as
Covid infection rates rapidly rise again."

 

RCN chief executive Pat Cullen said the announcement was "light on detail"
and that nursing staff would "remain dignified in responding to what will be
a bitter blow to many".

 

"But the profession will not take this lying down," she warned.

 

Mike Henley, a member of the consultants committee, British Medical
Association, told the BBC: "We're disappointed. We wanted more than 5% to
make up for our one-third pay loss since 2008, so 3% is a long way below
that."

 

In making the final decisions on pay the government will have factored in
the impact of the pandemic on both the economy and the NHS.

 

Currently almost half the NHS's budget goes on staffing costs - a total of
£56.1bn.

 

In theory, the pay-review bodies make recommendations for NHS staff across
the UK - but it is up to the individual UK nations to decide whether to
accept them.

 

In Wales, Health Minister Eluned Morgan said the 3% rise "recognises the
dedication and commitment of hardworking NHS staff".

 

In Scotland, most NHS staff have already been offered a 4% pay rise
(backdated to December 2020). This follows a one-off Covid payment for
health and social care staff of £500.-BBC

 

 

'Catastrophic' backlog at driving licence body, warns union

Decisions made by managers at the DVLA driving licence body have meant a
"catastrophic" processing backlog of 1.4 million cases, a union says.

 

Mark Serwotka, head of the Public and Commercial Services union, said if
staff were allowed to work from home the backlog could be reduced.

 

He told Transport Committee MPs other members of the civil service "were
tearing their hair out" at the DVLA.

 

He said it is a "stain" on the reputation of the civil service.

 

Mr Serwotka said the DVLA are "refusing to engage in a proper discussion."

 

"In 21 years [in this role], I have never encountered the level of
incompetence and mismanagement that is on display at the DVLA in Swansea,"
Mr Serwotka told the MPs on Wednesday.

 

"The tragedy of that is not just that public are suffering. Our members,
many of whom are quite lowly paid and very stressed at work, are bearing the
brunt of this."

 

Mr Serwotka said there had been 643 Covid cases and one fatality at the DVLA
during the course of the pandemic and that there are serious risks to staff
health and safety because of its actions.

 

Don't complain

Sarah Evans, the DVLA branch chair at PCS, said that staff are worried as
they can see cases rising on site, but that they have been told not to
complain.

 

"Our work site is very different because there is a high volume of staff in
a small area," Ms Evans told the committee.

 

The union wants more staff to be able to work from home to be able to allow
for better social distancing in the offices and to allow those isolating at
home to still continue to be productive.

 

It said other departments had been able to deliver remote working.

 

"We believe that if the Department of Work and Pensions can deal with three
million universal credit claims, if HMRC can deliver furlough scheme, if we
have workers in the Home Office, Ministry of Justice, devolved nations,
working from home, handling in some cases much more secure data, so could
the DVLA," said Mr Serwotka.

 

"We know there can't be a security issue in the DVLA that's not the same in
the rest of the civil service.

 

"Weeks and weeks of productivity have been lost by stopping staff working
from home," said Ms Evans. "There's no doubt at all that we would not be in
situation we are in
 had we been given the capability."

 

Laura-Louise Fairley says she applied for her driving licence online on 10
June. Nearly six weeks later, she's still waiting. "It's bad enough when
things don't work, but there's no contact point, that's the problem," she
told the BBC.

 

"A six week wait is not the end of the world, but I don't know if that will
turn into a six month wait. Until then, I can't make plans."

 

Ms Fairley applied for a replacement driving licence in order to hire a car
to visit family in Buckinghamshire and Berkshire with her daughter.

 

She says she has attempted to reach the DVLA around 30 times, but has only
been able to speak to an operator once. On other occasions, she says she was
directed to an automated message that then ended the call, and on the
website, her request is labelled as being "in process".

 

A DVLA spokeswoman told the BBC: "Our contact centre is open during business
hours but there are significant delays in contacting us due to ongoing
social distancing requirements in Wales which means that we have fewer staff
than usual on site at any one time.

 

"We understand this is causing frustration for our customers and we are
sorry for the inconvenience."

 

She added that demand is currently "very high" and staff are working
"extremely hard" to answer customer queries.

 

Mr Serwotka added that although it believed there was a lack of investment
in technology, the union had been told that it was also because the DVLA was
concerned about trust and supervision of staff.

 

The PCS and the DVLA are currently in an industrial dispute that has seen
targeted strike action since April where staff in different departments have
walked out for a few days at a time.

 

The PCS said that it negotiated a deal after months of discussions that
would protect the health of workers and provide respite and recognition of
what they had done over the last few months.

 

It said that the agreement was withdrawn on 1 June without an explanation.
Baroness Vere of Norbiton, Minister for Roads, Buses and Places, told the
committee that the government and DVLA estimated that 400,000 of the backlog
is due to the industrial action and that that they were being 'held to
ransom' by the PCS union.

 

She said that while the industrial action was undertaken about covid safety,
that it was not right that PCS were introducing a bonus and holiday request
to end the strikes, and that it was likely that the strike could be settled
"if they took requests for holiday and bonuses off the table".

 

DVLA's chief executive Julie Leonard told MPs it was advisable for people to
do their applications online where possible. Paper documentation can take
six to 10 weeks, whereas online processing can be sorted "in days", she
said.

 

She added: "We have taken staff safety incredibly seriously at every point
in this. Had it been easy to have more people working at home, we would have
done it.

 

"Staff safety really has come first. It will still come down to if we are
receiving 60,000 items of mail, we will still need people on site to open
and process those items that are arriving each and every day and that's a
real challenge for us.

 

"We are exploring every single option to see how we can increase the numbers
who work from home. We are conscious of resilience should this be a
difficult winter."-BBC

 

 

 

Mozambique: 'Hidden Debts' Trial Set for August

Maputo — The trial of 19 people accused of crimes in relation with the
scandal of Mozambique's "hidden debts" has been set for 23 August, according
to a report in Wednesday's issue of the independent newssheet "Mediafax".

 

Those of the accused under detention in the Lingamo prison in the southern
city of Matola received and signed notifications of the trial on Monday.

 

"Mediafax" adds that the authorities have not yet decided on a venue for the
trial. A large space is required given the number of defendants, and the
huge public interest in the case. One venue under consideration is the
Joaquim Chissano Conference Centre in Maputo.

 

Another possibility would be to hold the trial in a large air-conditioned
tent erected in the grounds of the top security prison in Matola. This was
the solution found for the trial, in 2002-2003, of the six people found
guilty of murdering the country's foremost investigative journalist, Carlos
Cardoso.

The term "hidden debts" refers to the loans, in 2013 and 2014, of over two
billion US dollars granted by the banks Credit Suisse and VTB of Russia to
three fraudulent, security-linked Mozambican companies, Proindicus, Ematum
(Mozambique Tuna Company) and MAM (Mozambique Asset Management).

 

The negotiations leading up to the loans involved at least three corrupt
officials from Credit Suisse, who have admitted to taking bribes, and
officials of the Abu Dhabi based group Privinvest , notably Jean Boustani.
Between them, they ensured that the Mozambican government of the day, led by
the then President Armando Guebuza, issued illegal loan guarantees, covering
the entire two billion dollars.

 

The effect of the guarantees was that, if the companies defaulted (as they
have done), then the Mozambican government would be held liable for repaying
the loans. But the guarantees violated the budget laws of 2013 and 2014 and
the Mozambican constitution. The loans and their guarantees have been
declared unconstitutional by the Constitutional Council, Mozambique's
highest body in matters of constitutional law.

 

The man who signed the loan guarantees was the then Finance Minister, Manuel
Chang. He is currently languishing in a South African prison, while the
South African Justice Minister, Ronald Lamola, decides whether he should be
extradited to Mozambique or to the United States.

 

Privinvest, which became the sole contractor for the three fraudulent
companies, sat at the heart of a network of corruption. According to US
prosecutors investigating the case, Privinvest used at least 200 million
dollars of the loan money for bribes and kickbacks. Among those who took
money from Privinvest were Chang, and the three Credit Suisse bankers Andrew
Pearse, Surjan Singh and Detelina Subeva.

 

The Attorney-General's Office (PGR) initially charged 20 people in
connection with the case, though the Supreme Court later ordered the release
of one of the accused, Marcia Namburete. The charges include corruption,
blackmail, embezzlement, abuse of office, violation of management rules,
falsification of documents, and membership of a criminal organisation.

 

Among those charged are Ndambi Guebuza, the oldest son of former President
Armando Guebuza, the former head of the State Intelligence and Security
Service (SISE), Gregorio Leao, the head of SISE economic intelligence,
Antonio do Rosario, who became chairperson of all three fraudulent
companies, President Guebuza's former secetary, Ines Moiane, and Renato
Matusse, once an advisor to Guebuza.

 

Most of the accused were released on bail or against a statement of identity
and residence in March this year. Five remain in detention, including Leao,
Rosario and Ndambi Guebuza.

 

 

 

South Africa: Government, Business Commit to Rebuilding SA Economy

Government and business leaders from industries affected by the recent
destruction of property and violence, in KwaZulu-Natal and Gauteng, have
committed to working together to rebuild the South African economy.

 

This commitment was made by 90 business leaders during a meeting with
President Cyril Ramaphosa on Tuesday in the wake of the civil unrest.

 

The vandalism and torching of various businesses affected operations and
livelihoods in the two provinces.

 

Representatives from sectors such as retail, agriculture, automotive,
telecommunications, banking and transport met with the President, Ministers
and the Premiers of Gauteng and KwaZulu-Natal. In a statement, the
Presidency said the meeting reflected on the challenges faced by key
industries and discussed priorities and measures that need to be taken to
rebuild and reposition the country.

"Business made practical suggestions for immediate recovery steps, support
to small businesses and longer term inclusive economic growth.

 

"The President outlined government's priorities, including the restoration
and maintenance of stability with the increased deployment of security
personnel; securing essential supplies by opening critical supply routes;
provision of relief and support for rebuilding; and accelerating inclusive
economic recovery," said the Presidency.

 

At the meeting, the importance of focusing on rural and township economies
and increased investment in infrastructure development was emphasised. The
meeting also discussed steps to assist companies, particularly small
businesses, to claim insurance and access other support measures.

 

"The meeting agreed on the need to work with greater urgency to tackle
poverty and unemployment and improve the living conditions of all South
Africans. Among other things, this requires a common effort to mobilise
investment, develop appropriate skills and create opportunities for young
people in particular."

 

President Ramaphosa welcomed proposals raised by business leaders and their
commitment to work with government, labour and communities not only to
rebuild their businesses, but also to transform the economy.

 

He said the security situation would have severe humanitarian, economic and
social consequences. "There is virtually no part of the economy that has not
been affected by the violence, and there is probably no part of the country
that will not feel the effects in some form or another because of the way
our supply chains work."

 

However, he said government and business leaders should build a social
contract to respond to the crisis, and to rebuild an economy that is far
more resilient, sustainable, dynamic and inclusive.

 

He reiterated that the attacks were used as a "smokescreen" to carry out
economic sabotage through targeted attacks on trucks, factories, warehouses
and other infrastructure necessary for the functioning of the economy and
the provision of services.

 

Despite the efforts of instigators, business people, worker representatives
and community leaders had played a remarkable role to defend property, to
protect communities, to open supply chains among other supportive steps.

 

"Taxi owners have defended malls. Businesses have provided food and fuel to
their workers. Today supermarkets are feeding our security forces. Some of
you have supplied cars to our forces," said President
Ramaphosa.-SAnews.gov.za.

 

 

 

Africa: AfCFTA Success Depends On Regional Integration of Public Good -
Report

The African Centre for Economic Transformation (ACET) has stated in its
African Transformation Report 2021 that countries in the continent should
look beyond trade and markets and collaborate in delivering regional public
good.

 

This, it noted was to ensure the success of the African Continental Free
Trade Area (AfCFTA) and achieve growth in their respective economies.

 

The report titled, "Integrating to Transform, stated: "But while past
regional integration efforts have often struggled, Africa's transformation
requires much more progress on regional integration.

 

"To achieve growth with depth and for the AfCFTA to succeed, countries have
to look beyond trade and markets and collaborate in delivering regional
public goods such as transport corridors, free movement of people,
well-managed river basins, cross-border digital connectivity, and systems to
control future outbreaks of pests and disease.

"These will all help tackle the three frontline challenges of jobs,
innovation, and climate-- all national challenges with regional components.
And in a self-reinforcing manner, collaboration to produce regional public
goods will also help build experience and trust to pursue deeper regional
economic integration, under the AfCFTA.

 

"To advance on these fronts will take dedicated leadership at all levels,
starting with top political leaders and extending to government, private
firms, academia, and civil society. Africa's leaders will need to promote
visions that go beyond their national interest and to pursue collective
action for the common good.

 

"Turning top-down visions into reality needs to be complemented by a
bottom-up, more problem-driven approach to national and regional problems to
help overcome the political economy barriers that have slowed progress in
the past."

 

The Founder and President of the ACET, Mr. Kingsley Amoako, observed that
the, "main message of the 2021 African Transformation Report is that
Africa's economic transformation requires much more progress on regional
integration."

Amoako also said that African countries should tackle three frontline
challenges, namely jobs, innovation and climate, which could make or break
their efforts to transform their economies.

 

He urged African countries to focus on these three areas, "because they are
the ones that will shape Africa's future, and they are on every
policymaker's agenda. Tackling each of them supports the transformation
agenda for growth with depth, and each requires and fosters regional
collaboration."

 

He said: "Ensure jobs for the world's youngest and fastest-growing labor
force by imparting skills for work in 21st century agriculture,
manufacturing and services and support digital innovation by enabling the
private sector to deliver the many benefits from digital technologies in
creating jobs, boosting productivity, and reducing poverty while managing
climate risks by promoting climate-smart agriculture, protecting green and
blue ecosystems, and exploiting renewable energy."

Amoako observed that the compelling case on the potential of regional
integration to accelerate economic transformation is attested to by the
reliance of Sub-Saharan African economies on importation of inputs for
manufacturing and the dearth of large domestic markets that would provide
their manufacturers with some natural protection from imports.

 

He, therefore, stated that, "integrating national markets into larger
regional markets would thus help countries overcome these disadvantages and
seize opportunities to transform their economies."

 

Amoako noted that, "African economies must now rebound quickly with
transformative and forward-looking policies that embrace regional
integration."

 

The report stated that the logic behind its definition of economic
transformation as growth with depth was based on the need to diversify
African economies, orientate them for competitiveness in export markets,
increase their productivity, and achieve technological upgrade and human
capital development.

 

It said: "African countries, most of them relying on a narrow range of
commodity exports, need to diversify the array of goods and services to
hedge against external and internal shocks.

 

"Their exports, if competitive will allow them to exploit their comparative
advantage to generate higher incomes, which will help pay for the
investments in skills, capital, and technology needed to solidify their
comparative advantage over time.

 

"Productivity gains, starting in agriculture, will allow agriculture to
release labor to industry and services, produce more food to moderate hikes
in urban industrial wages, supply raw materials for processing in
industries, increase exports to pay for transformation inputs, and enhance
the domestic market for industrial products.

 

"While technological upgrading will sustain rising productivity and enables
transforming economies to produce goods and services that command higher
prices on global markets."

 

The report added that, "increasing incomes per capita and employment,
together with health and education, as well as peace, justice, security, and
the environment will help to improve human well-being and will have feedback
effects of productivity and growth."

 

According to the Former President of the Republic of Liberia, Mrs. Ellen
Johnson Sirleaf, who is also the Chair of the Transformation Leadership
Panel, established by ACET in 2019, noted that a successful AfCFTA would be
a way to reinforce the badly needed integration in Africa, and said: "Now is
the time to reinforce the push for African integration, not just through
trade, but also through greater collaboration to provide regional public
goods. Only then will Africa see its economies transform and develop the
leadership and institutions to build the Africa we want."-This Day.

 

 

 

Tanzania: SMEs Digest - Nagawa Quit Her Job During Lockdown for Urban
Farming

Kampala — At the end of August 2020, Ms Hajarah Nagawa was jobless. She
moved from earning Shs1.4 million to nothing after tendering in her
resignation to the Non-Government Organisation (NGO) where she had been
working in July.

 

Despite working for seven years for the NGO stationed in Gulu working across
different regions of northern Uganda; the 31-year-old quit to start farming.

 

"I was tired of the distance created by the job between me and my children.
I then decided to quit my job during lockdown, when everyone else was
striving to hold onto theirs," Ms Nagawa, a mother of five recalls.

At the time, President Museveni was considering easing lockdown measures
instituted in March that year.

 

Several jobs were lost because companies could not afford to pay staff as
the Covid-19 induced lockdown pulled the plug on many of their revenues.

 

"I was always in the field and barely had the time for my children. I was
tired of the distance and wanted to be closer to them, especially since
lockdown kept us separated," she narrates.

 

The decision to quit her job despite the uncertain times clouded by a
pandemic came after discussions between Ms Nagawa and her husband which
birthed an idea to set up an agricultural training hub, in their backyard.

 

"It was hard in the beginning," she admits, noting that she was forced to
cut costs and focus only on priorities to make ends meet.

Backyard farming

 

Ms Nagawa owns a sizable plot of land in Gayaza, Kabubu. The land which
houses her home; also serves as her agricultural grounds and potential
training hub.

 

"At the time, the plan was to set up my business in the backyard, in
proximity with my family. I loved agriculture and after extensive research
and visiting model farms, I thought of setting up a training hub," she says.

 

However, her efforts were drained after prolonged yet fruitless proposals
for funding.

 

Later in the year, Ms Nagawa landed on a call for applications from the MTN
youth skilling programme implemented in partnership with Ubinufu systems, a
software development firm. Upon application, she was approved.

 

 

She is one of the 100 participants chosen for the training programme whose
aim is to create formal youth entrepreneurs and job creators.

 

She notes that under the programme, she has learnt record keeping and
financial management, taxation, innovation and digitisation among others
which have been essential in her path to entrepreneurship. Through the
training she was empowered to start her business with minimal capital and
resources at her disposal.

 

"I have learnt that with the limited resources you have, you can still
achieve what you want," she says.

 

At home, Ms Nagawa has a chicken business with about 500 kroilers. She buys
one-month old birds at USh8,000 and sells them between USh35,000 and to
USh40,000.

 

"Minus the costs and operations, I earn around Shs5 million in five months.
We sell in bits, because some hens by three months are already heavy and
ready for sale." She says adding, "For home consumption, we sell based on
the weight of the bird, while birds for resale are sold for around
USh35,000.

 

In addition, she plants maize where she earns extra income.

 

Ms Nagawa harvests maize which she takes to the milling machine.

 

This is usually 1000 kg of maize where she gets 50 percent of either maize
bran or posho. This is sold depending on the retail price per the season.
"Currently, a kg of posho at market price costs USh1,200. I earn about
USh600,000 from 500kg of posho. Those are about five bags of 100Kg," she
explains.

 

However, this rarely happens because instead of getting the money, she
exchanges her maize at the maize milling shop for either vaccines for her
birds or feeds equivalent to her kgs.

 

"During the exchange, the trader's decides how much he/she will sell the
posho. The price of posho ranges between USh1,500 and USh2,000 depending on
the quality," she notes.

 

Waste management and recycling

 

She also employs a rotational method of waste management and recycling.

 

After harvesting the maize, she uses the combs for fuel and as a mosquito
and insect repellent in the chicken houses.

 

The stems of the maize upon harvesting are also fed to the chicken as feeds
which reduces operational costs.

 

Ms Nagawa further collects the chicken droppings to be used as fertilisers
on her farm in addition to selling them to neighbours as manure.

 

"I sell a 100 kilogramme bag of chicken droppings at USh7,000," she reveals.

 

Plans

 

She plans to scale the agricultural practice into a training Centre to
increase awareness and equip the youth and women of Gayaza in urban farming
with the goal of curbing the increasing youth unemployment in the region.

 

"Gayaza is slowly growing with many people putting up estates. Having sold a
lot of land in the area, the local community is left with minimal land
forcing a number of youth to resort to quarrying, drug abuse and petty
theft," Ms Nagawa says, noting that she would like to train the youth and
women in using small pieces of land for commercial agriculture.

 

Challenge

 

However, the challenge of capital limits her from scaling the agricultural
practice into a training centre she envisages.

 

"I plan to set up a greenhouse, an indoor fish quarry, a backyard farm,
breed more chicken and create an open online marketplace where people can
order and book for produce for delivery ahead of time for those that cannot
move," she explains.

 

"I would need about Shs100m to scale to the heights," she says.-Citizen.

 

 

 

Tanzania: Energy Firm Loses Bid to Block Sh84.2 Billion Tax Assessment

Dar es Salaam — The Court of Appeal has rejected Pan African Energy Tanzania
Limited (PAETL)'s efforts to challenge a Sh84.2 billion tax demanded by the
Tanzania Revenue Authority (TRA).

 

The highest court has confirmed decisions of the Tax Revenue Appeals Board
(Trab) and the Tax Revenue Appeals Tribunal (Trat) which had refused to hear
the company's objection against the assessment.

 

PAETL attempts to challenge the tax demand crashed for the third time
recently after the court sided with the quasi-judicial bodies to rule that
the natural gas producer's appeal could not be entertained because it was
preferred against a non-appealable decision.

Pan African sought interpretation of the top court on what could be
taxpayer's remedy in the event TRA refuse to grant waiver to deposit one
third of the assessed tax in order to validate the notice of objection.

 

Under Tanzanian tax laws, a taxpayer who has lodged a notice of objection
against tax assessment has to deposit 30 percent of the assessed tax before
the objection could be heard and determined by TRA's Commissioner General.

 

The legal battle pitting Pan African Energy against taxman's decision
started in 2016 after TRA conducted an audit on the company's tax affairs.

 

Following the audit, TRA issued in March, 2016 issued a notice of assessment
to the appellant for the years of income 2014 which imposed a Sh84.2 billion
tax burden.

 

The natural gas producer has consistently opposed the assessment. The
company lodged notices of objection to the assessment and subsequently
applied for a waiver to deposit one third of the required tax for its
objection to be admitted.

TRA said it could not grant waiver because the reasons advanced by the
energy company to apply waiver were also pleaded in the notices of objection
and as such, could not be dealt with before determination of the objection.

 

Aggrieved with the refusal of waiver, PAETL took the matter before Trab
which dismissed the appeal, saying TRA was justified to refuse the grant of
waiver.

 

That was not the end of it for PAETL.

 

The company took the case before the Trat which also struck out the appeal
for being incompetent.

 

Trat rejected the appeal on the ground that it was not the result of an
objection decision of the commissioner general.

After losing the second bid to have its complaint heard, Pan African Energy,
which produces and supplies gas for power generation at the Ubungo power
plant, Dar es Salaam, resorted to the Court of Appeal.

 

At the top court, the company argued that Trat erred in holding that its
appeal was incompetent for being against a non-appealable decision.

 

AETL also argued that Trat wronged when it failed to consider its arguments
that TRA's decision of refusing to grant them one-third waiver was
appealable decision.

 

PAETL submissions

 

What was in dispute was the interpretation of the of the Tax Administration
Act (TAA) and the Tax Revenue Appeals Act (TRAA) on the taxpayer's remedy if
it happens that TRA refuses to grant waiver to deposit one third of the
assessed tax.

 

Mr Fayaz Bhojani who represented PAETL in the appeal argued that under
section 50 (1) of the TAA, TRA's commissioner general has discretion to make
any tax decision including 'assessment' or 'other decision' or 'omission' in
case of a grievance.

 

It was his further contention that the law mandates the commissioner general
to reduce or waive the amount to be paid upon being moved by the taxpayer.

 

In case the waiver is refused, he argued, that was among the contemplated
"other decisions" or "omission" which are appealable to the board in terms
of section 53 (1) of the TAA.

 

Pan African Energy faulted the tribunal by focusing solely on the provision
of section 16 (1) of the Tax Revenue Appeals Act instead of considering it
together with the extensive right of appeal which was articulated under
section 53 (1) of the TAA.

 

He argued that Trat's decision to strike out its appeal was irregular
because their right to appeal against refusal to grant the waiver was
embraced in 'other decisions' or 'omission' of the commissioner general.

 

It was also the argument of Mr Fayaz that there was no clarity as to how a
taxpayer can invoke a remedy of an appeal to the board against 'other
decisions 'or 'omission' of the respondent.

 

TRA oppose appeal

 

TRA strongly opposed the appeal and supported decision of the tribunal in
striking out the appeal for being preferred against a non-appealable
decision before the board.

 

Its lawyers pointed out that in terms of section 16 (1) of the TRAA, what
was appealable to the Trab was solely an objection decision arising from a
tax decision made by the commissioner general.

 

Court of appeal dismisses appeal

 

The Court of Appeal was left to decide whether or not the refusal to grant
waiver to deposit one third of the assessed tax was a tax decision which is
appealable to Trab in terms of section 16 (1) of the TRAA.

 

"In the light of the unambiguous and plain language used in section 50 (1)
of what is a tax decision, we are satisfied that refusal to grant the waiver
is excluded in the realm of what constitutes a tax decision and neither is
it an objection decision," said Justices Stella Mugasha, Rehema Kerefu and
Issa Maige.

 

On whether commissioner general's refusal to waiver was among the appealable
decisions envisaged by Rule 6 of the Tax Appeals Board Rules, the court said
it was clear that refusal to grant waiver was not among the envisaged
appealable decisions.

 

The court also declined PAETL's call for it to interpret the refusal to
grant waiver as a tax decision because the language used in the TRAA and TAA
was plain.

 

"The legislative intent was vivid and to do otherwise as suggested by the
appellant, was to embark on interpolations which is not giving effect the
clear meaning of the statutes in question," said the judges.-Citizen.

 

 

 

Seychelles: Telecom Network in Seychelles to Undergo Maintenance This
Weekend

Seychelles expects interruptions in telecommunication services from this
Saturday evening to midday Sunday when the Seychelles Cable Systems Company
undertakes maintenance work.

 

The company said on Wednesday that according to measurements conducted in
May it was determined that there is substantial signal degradation on the
land sections of the Seychelles East Africa System (SEAS).

 

"The cause of the degradation is a land joint in the beach manhole at Beau
Vallon in Seychelles and a land joint in Dar es Salaam, Tanzania. The
supplier Alcatel Submarine Networks has confirmed that both joints have to
be replaced as soon as possible as the signal is continuously degrading and
it is highly probable that traffic will cease in a matter of a few months,"
added the company.

Seychelles Cable Systems Company said that it is also expected that there
will be a negative impact on the quality of service on telecommunication
services nationally during this period.

 

Meanwhile, the principal secretary of the Department of Information
Communication and Technology, Benjamin Choppy, told SNA on Wednesday that
Seychelles expects to see the landing of the second submarine communication
cable system - the Pakistan East Africa Cable Express (PEACE) - by the end
of the first quarter in 2022.

 

The second submarine cable system will provide Seychelles, an archipelago in
the western Indian Ocean, with connectivity security.

 

PEACE will run from Pakistan, go up to Europe and come down to Africa. The
branch connecting Seychelles will come from Kenya. The project which is
being undertaken by the Seychelles Cable Systems Company Limited is expected
to cost $20 million.

 

"The system has already been manufactured and right now there are certain
planning taking place relating to its deployment," said Choppy.

 

"We need to fit ourselves in the timetable of the larger system. Based on
the most recent plan of work we have received from Huawei Marine Network,
the contractor undertaking the project, our cable will land towards the end
of the first quarter of next year, assuming that there will not be any
adverse conditions internationally. Commercial operations are expected to
start soon after," he added.

 

The signing for the installation of the cable took place in 2018 and work
was expected to start in 2019 and be completed in 2020, however, this was
pushed to July 2021 and now to March 2022.

 

The second submarine cable will land at Perseverance - a man-made island on
the north-eastern coast of the main island of Mahe - and at the moment, the
new Cable Landing Station is being built and expected to be ready by the end
of this month so as to receive equipment that will come in by next August.

 

Currently, Seychelles has only one fibre-optic cable, built under the
Seychelles East Africa System (SEAS) in 2012 connecting the main island -
Mahe - to Dar es Salaam, Tanzania.

 

SEAS supports over 90 percent of internet traffic in the country with the
amount on the satellite being minimal.

 

"The main rationale of the second cable is to provide connectivity security
as we currently have only one cable. Should a problem arise on the current
cable, we will lose connection and go in the dark. It will be difficult for
operators to switch to satellites with the amount of traffic that we have on
the current cable," said Choppy.-News Agency.

 

 

 

Tesla will 'most likely' restart accepting bitcoin as payments, says Musk

(Reuters) - Electric-car maker Tesla Inc (TSLA.O) will most likely restart
accepting bitcoin as payments once it conducts due diligence on the amount
of renewable energy used to mine the currency, Chief Executive Officer Elon
Musk said at a conference on Wednesday.

 

Bitcoin was up 8% at $32,160.16, while ether surged 11.6% to $1,993.36.
Tesla's shares were down 0.8% at $655.30 in extended trading.

 

Musk's comments at the B Word conference come after Tesla said in May it
would stop accepting bitcoin for car purchases, less than two months after
the company began accepting the world's biggest digital currency for
payment.

 

"I wanted a little bit more due diligence to confirm that the percentage of
renewable energy usage is most likely at or above 50%, and that there is a
trend towards increasing that number, and if so Tesla would resume accepting
bitcoin" Musk said.

 

"Most likely the answer is that Tesla would resume accepting bitcoin."

 

The use of bitcoin to buy Tesla's electric vehicles had highlighted a
dichotomy between Musk's reputation as an environmentalist and the use of
his popularity and stature as one of the world's richest people to back
cryptocurrencies.

 

Some Tesla investors, along with environmentalists, have been increasingly
critical about the way bitcoin is "mined" using vast amounts of electricity
generated with fossil fuels.

 

More digital currency miners, however, are making attempts to use renewable
energy to mitigate the impact on the environment.

 

"Tesla's mission is accelerating the advent of sustainable energy. We can't
be the company that does that and also not do appropriate diligence on the
energy usage of bitcoin," Musk said.

 

Musk added that he personally owned bitcoin, ethereum and dogecoin, apart
from bitcoin that Tesla and SpaceX owned.

 

"I might pump, but I don't dump," Musk said. "I definitely do not believe in
getting the price high and selling ... I would like to see bitcoin
succeed."-The Thomson Reuters Trust Principles.

 

 

Stocks shrug off virus worries; ECB in focus

(Reuters) - Asian stocks rallied on Thursday, bonds nursed losses and oil
held onto sharp gains as investors seemed to set aside virus jitters for now
and looked ahead to the European Central Bank for reassurance that policy
support will continue for some time.

 

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS)
followed Wall Street higher and rose 1% with broad gains from Sydney (.AXJO)
to Seoul (.KS11) and Hong Kong (.HSI). Japanese markets are closed until
Monday.

 

There was no obvious catalyst for the recent rebound in stocks, or the
drawdown on Friday and Monday, though a study on Wednesday showed both
Pfizer and AstraZeneca vaccines were effective against the Delta coronavirus
variant. read more

 

"Every now and then investors look for reasons to take some profits off and
that's what we saw," said Jun Bei Liu, portfolio manager at Tribeca
Investment Partners in Sydney.

 

"The market suddenly became worried about the delta variant and how it might
affect the path to recovery," she said. "But what we have compared with 12
months ago is quite a few viable vaccines...eventually we will be coming out
of this and we are much closer to the end than we were 12 months ago."

 

Still, unlike Wall Street, most Asian indexes struggled to recoup early-week
losses as Asia contends with burgeoning outbreaks in unvaccinated
populations and as nerves persist around China's regulatory crackdown on
technology firms.

 

Shares in heavily-indebted Chinese property developer Evergrande (3333.HK)
rebounded about 11% in Hong Kong after it said it had resolved legal
disputes with a lender.

 

Elsewhere, resilience in the U.S. dollar - which traded near recent
multi-month peaks early in the Asia session - also suggests currency markets
are still pretty cautious.

 

The dollar index sat at 92.812, off a three-month peak of 93.194 and the
euro was steady just above recent lows at $1.1791.

 

"The dollar has been trading on the front foot regardless of the risk
sentiment swings in recent days," Westpac analysts said in a note, supported
by the view that high inflation could drive U.S. rate rises.

 

A shift to a more structurally dovish European Central Bank should cement
the dollar index at higher levels, the analysts said, with a test of the
year's highs likely this quarter.

 

ON LAGARDE WATCH

 

With a mostly bare data calendar on Thursday the European Central Bank's
policy-setting decision, due at 1145 GMT, and the subsequent press
conference from President Christine Lagarde are the main focus for markets.

 

Lagarde infused traders with a sense of anticipation after flagging an
adjustment to the bank's rates guidance to reflect a new and more flexible
inflation-targeting strategy.

 

"To really enforce their credibility, the ECB could tie their rate path to
an explicit calendar date - i.e. no rate hike until late 2024," said Luke
Suddards, a strategist at brokerage Pepperstone. "That would be a dovish
surprise for FX markets and put pressure on euro crosses."

 

Rates markets idled in Asia, with trade thinned by Tokyo's holiday,
following a sell-off in Treasuries overnight that left the yield on the
benchmark 10-year U.S. government debt at 1.2884%.

 

Investors have one eye on a brewing partisan showdown in Washington over the
U.S. debt ceiling, as the U.S. Treasury is projected to exhaust its
borrowing authority in October, which put upward pressure on short-end rates
overnight. read more

 

In commodity markets, oil hung on to most of Wednesday's sharp price rise,
its biggest one-day gain in three months. Brent crude futures were last 0.4%
softer at $71.94 a barrel, but had gained more than 4% on Wednesday.

 

Gold was steady at $1,801 an ounce and cryptocurrencies were firm after
bouncing from lows when Tesla boss Elon Musk said the carmaker would likely
restart accepting bitcoin payments after due diligence on its energy
use.-The Thomson Reuters Trust Principles.

 

 

 

Coca-Cola leans on early pandemic lessons to prepare for Delta variant hit

July 21 (Reuters) - Coca-Cola Co (KO.N) will rely on its pandemic-tested
strategy of focusing on bigger brands and doubling down on its supply chain
to combat a potential impact from the Delta variant of the coronavirus, its
finance chief said on Wednesday.

 

CFO John Murphy's comments come as the re-opening of global economies helped
the beverage giant beat second-quarter expectations and raise its full-year
sales forecast, sending the Dow component's shares up as much as 3%.

 

Surging infections from Australia to the United States have brought back
lockdowns and other restrictions in some regions, raising fears over the
pace of the economic recovery and rattling stock markets earlier this week.

 

Sales in some markets in Asia were hit in the second quarter from the
resurgence, Murphy said, adding some likely impact of the variant was baked
into the raised sales forecast.

 

"When things get more constrained, the bigger brands are the ones you focus
on," Murphy told Reuters.

 

Coca-Cola has streamlined its product range over the past year to ease the
fallout from the pandemic. The company, which owns brands such as Sprite,
Fanta and Dasani, has discontinued its TaB diet soda and Coca-Cola Energy
brands in the United States, and sold its ZICO coconut water brand.

 

The company is particularly vulnerable to the closing of theaters,
restaurants and stadiums, unlike rival PepsiCo (PEP.O) that relies more on
grocery and retail channels.

 

"If we have a re-closing of venues or capacity restrictions re-implemented,
Coke sales are going to suffer. For that reason we view it as the riskier
name to Pepsi," said Garrett Nelson, senior equity analyst at CFRA Research.

 

Coca-Cola's adjusted overall revenue rose 41.1% in the second quarter to
$10.13 billion, beating estimates of $9.32 billion, according to IBES data
from Refinitv.

 

The company raised its annual organic revenue target to an increase of 12%
to 14%, from the high single digits rise expected earlier. Annual adjusted
earnings per share are expected to rise 13% to 15%.

 

Adjusted earnings of 68 cents per share beat expectations of 56 cents.

 

The Thomson Reuters Trust Principles.

 

 

 

After $27.7 bln deal, Salesforce aims to connect companies via Slack

(Reuters) - Business software maker Salesforce.com (CRM.N) on Wednesday
closed its $27.7 billion purchase of Slack Technologies Inc (WORK.N), a
massive bet that Slack's workplace app will become popular for
collaborations within and between companies.

 

U.S. antitrust regulators cleared the deal this week, allowing the creation
of a stronger challenger to Microsoft Corp (MSFT.O), the top workplace
software provider whose Teams app competes with Slack for market dominance.

 

The merger partners hope the deal will bolster efforts to connect their
joint customers to smooth out common business deals, Salesforce President
Bret Taylor and Slack Chief Executive Stewart Butterfield said in an
interview on Wednesday.

 

They also want to reduce the complexity of using hundreds of different
cloud-based apps that have crept into workplaces, they added.

 

For example, a Slack "channel" can be created to replace all the emails,
phone calls and video conferences that might otherwise occur between a sales
team doing a deal with a procurement team at another company. Thousands of
apps work with Slack, so documents from third-party platforms like Google
Drive can be signed in the channel with services like DocuSign Inc (DOCU.O),
Taylor said.

 

"We did the due diligence for the Slack acquisition in Slack," Taylor noted.

 

"I joked it had the highest billable hours of any channel ever, because we
had all the lawyers in there and the investment banks," he said, but "it was
really a transformative experience."

 

While analysts view Teams as Slack's largest rival, Butterfield said Slack
will continue to integrate with the Microsoft app in line with its goal to
make it easier for employees to get things done.

 

"What customers want is interoperability. They don't want to have to make
hard choices," Butterfield said. "We'll integrate with everyone - Microsoft
and Salesforce, of course, but also ServiceNow and Workday, and more or less
anyone you can think of."

 

The Thomson Reuters Trust Principles.

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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Skype:         Bulls.Bears 



 

 

 


 

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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