Major International Business Headlines Brief::: 28 July 2021

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Major International Business Headlines Brief::: 28 July 2021

 


 

 


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

 


 

 


ü  Toy giant Mattel warns of higher prices as costs rise

ü  Fully jabbed from EU and US could avoid quarantine

ü  Tech giants' profits soar as pandemic boom continues

ü  IMF upgrades UK economic forecast

ü  Electric car charging prices 'must be fair' say MPs

ü  No gain without pain: Why China's reform push must hurt investors

ü  Asia shares sit at 2021 lows ahead of Fed verdict, China steadies

ü  Apple says chip shortage reaches iPhone, growth forecast slows

ü  Google parent Alphabet reaches record quarterly revenue, profit in ad
boom

ü  BoE set to keep full-speed stimulus despite split over inflation risk

ü  German consumer morale steady heading into August- GfK

ü  Aston Martin's first SUV helps push up sales by more than 200%

ü  Wizz Air sees summer capacity close to pre-pandemic levels

ü  Microsoft sees steady cloud growth after record quarterly profit

ü  Rwanda: Govt to Engage Banks, Rra in Bid to Recover Embezzled Funds

ü  Nigeria: AMCON Takes Over NICON

ü  Kenya: Inside Sh1.76bn Lamu Port Compensation Heist

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Toy giant Mattel warns of higher prices as costs rise

Toy maker Mattel says it has to raise prices in the run-up to Christmas as
the industry giant faces higher costs.

 

The comments come after a rise in costs of raw materials and shipping, as
the global economy recovers from the pandemic.

 

At the same time, the maker of Barbie dolls announced better than expected
sales of more than $1bn (£720m).

 

Like rival Hasbro, Mattel is emerging from the impact of Covid that saw
shops closed and supply chains disrupted.

 

"We will be looking at increasing prices in the second half of [the] year,"
Mattel's chief executive Ynon Kreiz told the BBC.

 

"We haven't broken out [which products will be affected], but this is in
response to some of the inflationary pressures," he added.

 

Mr Kreiz also said his company was not alone in having to put up its prices:
"We're not the only ones who did it, in our industry everyone did - and
no-one is surprised by [price increases]."

 

He was speaking as the company unveiled second quarter figures that beat
Wall Street forecasts.

 

Net sales for the period jumped by 40% compared to the same time last year
to $1.03bn.

 

That was boosted by a 46% rise in billings for Barbie, the company's biggest
brand.

 

Companies in many industries around the world have had their operations
disrupted by delays to shipping and problems getting goods through ports due
to the pandemic.

 

Mr Kreiz said Mattel encountered supply chain issues due to problems with
shipping but had got around the worst of them due to the scale of the
business.

 

"We were able to leverage our size and partnerships that we have with our
vendors and retail partners and mitigate some of these issues, so we did not
have any impact on our business in the second quarter," he said.

 

On Monday, rival toy maker Hasbro announced better than expected net
revenues of $1.32bn, a rise of 54%.

 

Hasbro also said it aimed to avoid pandemic-related supply chain issues by
increasing its shipping capabilities and speeding up the process of sourcing
its products.

 

In recent years Mattel has made Barbie more diverse, with dolls based on
different role models and professions.

 

Earlier this month the firm launched a doll based on tennis superstar Naomi
Osaka.

 

Revenues were also boosted by a 67% jump in billings for the Hot Wheels toy
car brand.

 

The firm said it expects Barbie content on Netflix and an upcoming movie
starring Margot Robbie, as well as a new video game based on Hot Wheels, to
help maintain both brands' popularity this year.

 

Mattel shares were more than 5% higher in extended New York trade after the
earnings announcement.-BBC

 

 

 

Fully jabbed from EU and US could avoid quarantine

Senior cabinet ministers are to discuss allowing fully vaccinated travellers
from the EU and US to avoid quarantine when they arrive in England.

 

A review of the border rules is due by 31 July - the second date in the
Department for Transport's plan for a safe return to international travel.

 

Sources said the isolation exemption was likely to be discussed at the Covid
Operations meeting on Wednesday.

 

But they said a decision on whether to proceed will not necessarily be
taken.

 

Currently, people who have been fully vaccinated in the UK do not have to
quarantine when travelling from the US and EU because those places are on
the amber list (and some EU countries are on the green list). But that
exemption does not apply to people who have been vaccinated outside the UK.

 

Downing Street and the Department for Transport declined to comment on
newspaper reports the government would go ahead with the plan to also exempt
people vaccinated in the US and EU.

 

But the aviation industry has been pushing for a relaxation of quarantine
rules for travellers from the EU and US after completing a trial of checking
the vaccination status of passengers.

 

Such a change would benefit people such as expats and tourists who want to
come to the UK for holidays or to visit loved ones.

 

British Airways, Virgin Atlantic and Heathrow Airport wanted to demonstrate
that vaccination status could be checked away from the border and allow safe
entry to the UK from countries on the amber list.

 

The companies said 99% of documents were verified correctly during the
10-day trial, which involved about 250 fully-vaccinated participants from
the US, the Caribbean and Europe, travelling to Heathrow.

 

Two passengers had their credentials rejected, the companies said: one
because their vaccination was completed less than 14 days before travel, and
the other because of a discrepancy between the name on the passport and on
the vaccine card.

 

Under current rules, other countries are granted a "traffic light" status
for arrivals - red, amber or green.

 

The vast majority of countries, including the US and many European countries
including Spain, Italy and Germany, are on the amber list.

 

Adults who have been fully vaccinated in the UK, and under-18s who are UK
residents, no longer have to self-isolate after visiting any amber country
apart from France. But anyone who was fully vaccinated outside the UK still
has to quarantine for 10 days on arrival, or pay for the test-to-release
scheme to shorten their quarantine.

 

'No reason to delay'

The travel industry has criticised the "frustrating" traffic light system
for hindering its recovery. British Airways, Virgin Atlantic and Heathrow
Airport said the UK was falling behind the EU in opening up to international
travellers.

 

BA chief executive Sean Doyle said the trial provides the evidence that the
government needs to allow fully vaccinated visitors from low-risk countries
to come to the UK without self-isolating.

 

"The UK needs to safely reopen its borders as soon as possible to ensure
loved ones can reunite, business can thrive and global Britain is able to
take advantage of the UK's world-leading vaccination programme," he said.

 

Virgin Atlantic boss Shai Weiss said the UK's current "overly cautious
approach" would harm its economic recovery and put half a million jobs at
risk.

 

Heathrow boss John Holland-Kaye said: "The vaccine has been a miracle of
science, and these trials have shown that we can allow fully vaccinated
passengers from the EU and US to visit the UK without quarantine."

 

He said there was "no reason to delay with rolling out the solution from
July 31".

 

US citizens have been urged not to travel to the UK by the country's health
protection agency, the Centers for Disease Control and Prevention.

 

The UK and US have set up a taskforce to discuss a travel corridor, although
earlier this week the White House said it had no plans to lift Covid-19
travel restrictions for non-Americans.

 

Boris Johnson told LBC on Wednesday that "we're talking to them the whole
time".-BBC

 

 

 

Tech giants' profits soar as pandemic boom continues

Tech giants have reported soaring profits as consumers upgraded their
devices and sought cloud storage during lockdowns.

 

Apple's profits nearly doubled to $21.7bn (£15.6bn) in the three months to
30 June as customers bought pricier 5G iPhones.

 

Microsoft saw a $16.5bn profit at the same time - up 47% year-on-year, due
to demand for cloud services and games.

 

Analysts warned that the figures may lead to calls for tech company curbs.

 

Google's parent company, Alphabet, also reported on Tuesday that quarterly
sales and profits had surged to record highs.

 

That was largely down to an increase in spending on online advertising aimed
at customers who were stuck at home shopping online due to restrictions.

 

Its video platform YouTube, for example, saw advertising revenue jump to
$7bn in the three months ending 30 June, in comparison with $3.81bn the year
before.

 

The boss of the search engine giant, Sundar Pichai, said that there was a
"rising tide of online activity in many parts of the world, and we're proud
that our services helped so many consumers and businesses."

 

Its chief financial officer Ruth Porat said that revenues, which hit
$61.9bn, also reflected "elevated consumer online activity" as some
economies recover from the coronavirus pandemic.

 

Apple's record sales, meanwhile, were boosted by growth in iPhone purchases,
as well as digital subscriptions for its TV and music streaming services.

 

"This quarter, our teams built on a period of unmatched innovation by
sharing powerful new products with our users, at a time when using
technology to connect people everywhere has never been more important," said
chief executive Tim Cook.

 

The California tech giant also singled out China as its fastest-growing
market, where consumers snapped up accessories such as the Apple Watch, as
well as the latest iPhone 12 model, which can connect to faster 5G wireless
networks.

 

Wedbush analyst Dan Ives said that taking into account the global chip
shortage affecting many companies including Apple, "we would characterise
this as a 'gold medal' performance".

 

He added: "China remains a key ingredient in Apple's recipe for success as
we estimate roughly 20% of iPhone upgrades will be coming from this region
over the coming year with the launch of the iPhone 13."

 

Microsoft also said on Tuesday that sales in its fourth quarter had been
driven by demand for personal computers, which includes Windows software as
well as its new Xbox consoles - although sales of Xbox content dipped
slightly.

 

Paolo Pescatore, an analyst at PP Foresight, said that suggested "the gaming
pandemic party is coming to an end" and the firm may need to diversify its
business further.

 

Looming clouds

As parts of the economy have started to reopen, firms such as Microsoft,
Alphabet and Apple have been laying out plans on how to grow even as people
spend more time away from home - and their devices.

 

Microsoft recently launched a cloud-based version of its operating system.

 

Mr Pescatore also pointed out that Silicon Valley giants are facing
increased scrutiny at the moment as profits rise.

 

"A dark and bigger cloud is looming as these latest results will lead to
further calls for regulatory scrutiny to curb their dominance," he said.

 

In the UK, a new regulator called the Digital Markets Unit (DMU) has just
started work on creating new codes of conduct for tech firms and their
relationship with content providers and advertisers.

 

The regime will be "unashamedly pro-competition", Business Secretary Kwasi
Kwarteng said.

 

In the US, President Biden recently signed an executive order in a bid to
promote further competition.

 

It suggested that problems have arisen because of large tech firms
collecting too much personal information, buying up potential competitors
and competing unfairly with small businesses.

 

It included several recommendations such as greater scrutiny of mergers in
the tech sector and barring unfair methods of competition on internet
marketplaces.-BBC

 

 

 

IMF upgrades UK economic forecast

The UK economy will grow faster than expected this year as it recovers from
the Covid pandemic, the International Monetary Fund (IMF) has said.

 

Economic prospects for rich and poor nations have diverged more due to
differing access to Covid vaccines, it said.

 

In a new assessment, the IMF said the world is increasingly split into two
blocs.

 

It has upgraded growth forecasts for developed economies.

 

But the outlook for many developing countries has weakened.

 

Among the forecast revisions for this year, the largest upgrade is for the
UK to 7%.

 

Britain is also now predicted to have the joint fastest growth of the G7
leading rich countries, together with the US, although that follows a
contraction last year that was the deepest in that group.

 

The UK's Chancellor, Rishi Sunak, welcomed what he called "the positive
signs that the economy is rebounding faster than previously expected".

 

However, he acknowledged that there were still challenges ahead and said the
government would remain focused on protecting and creating as many jobs as
possible.

 

The IMF - an international organisation that seeks to promote economic
growth, trade and financial stability - says there is a division between
those countries "that can look forward to further normalisation of activity
later this year - almost all advanced economies - and those that will still
face resurgent infections and rising Covid death tolls".

 

Its report says that in the rich countries almost 40% of the population is
fully vaccinated.

 

In emerging market economies - the more advanced developing nations - it's
less than half that, and just a "tiny fraction" in low income countries.

 

For the rich countries together, growth is now predicted to be stronger this
year by half a percentage point. But there is an offsetting downgrade for
the rest of the world which leaves the global 2021 forecast unchanged at 6%.
There is an upgrade next year to 4.9%.

 

However, the IMF warns that even in countries with very low infection
levels, the economic recovery is not assured as long as the virus circulates
elsewhere.

 

Fed warns the path of the economy depends on Covid

Biden calls for nations to boost their economies

Another factor fuelling the divergence is the steps taken by governments to
support economic recovery. The report calls the effect in the US "sizable".

 

The report says that international action is needed to diminish divergences
and strengthen global prospects. It says the immediate priority is to deploy
vaccines equitably worldwide.

 

"Concerted, well-directed policies can make the difference between a future
of durable recoveries for all economies or one with widening fault lines -
as many struggle with the health crisis while a handful see conditions
normalise, albeit with the constant threat of renewed flare-ups."

 

The report suggests that inflation - which has surged in some countries - is
in most cases likely to subside to pre-pandemic ranges next year. It could,
however, be more persistent if people and businesses come to expect higher
inflation and seek to raise prices and wages in anticipation.-BBC

 

 

Electric car charging prices 'must be fair' say MPs

People must be protected from excessive pricing for public electric car
charging, MPs have said.

 

Charging an electric car at home is much cheaper than using public charge
points.

 

This could put pressure on people who are less able to afford it, the
Transport Select Committee said.

 

The government also needs to make charging infrastructure accessible and
reliable, and make sure people in rural areas have equal access, the MPs
added.

 

The UK plans to ban the sale of new petrol and diesel cars by 2030, and
hybrids by 2035.

 

That should mean that most cars on the road in 2050 are either electric, use
hydrogen fuel cells, or some other non-fossil fuel technology.

 

 

Why electric cars will take over sooner than you think

However, at present there is a disparity between how much it costs to charge
a car at home compared to public charging, which is more expensive.

 

Consumers need to be protected from excessive charges, the Transport
Committee said.

 

Property developers should also be required to provide public charging
points, and councils should make sure charging infrastructure is built, the
MPs added.

 

"Charging electric vehicles should be convenient, straightforward and
inexpensive and drivers must not be disadvantaged by where they live or how
they charge their vehicles," said committee chair Huw Merriman.

 

In addition, drivers who live in rural or remote areas or who do not have
off-street parking "risk being left behind", the committee said.

 

The committee said industry must use pricing "to change consumer charging
behaviour to a 'little but often' approach and at times when the National
Grid can meet total demand".

 

Graeme Cooper, head of future markets at National Grid, said that the energy
network operator was "working with government to map out where critical grid
capacity is needed to enable the faster roll out of charging points".

 

"There will be an uptick in demand for energy so we need to ensure that we
are future proofing, putting the right wires in the right place for future
demand."

 

He said National Grid would have to ramp up capacity to help achieve the
UK's net zero goals, both by making it smarter, but also putting in more
physical infrastructure.

 

Preparing for a revolution is never easy - but with the sale of new petrol
and diesel cars due to end in 2030, that's exactly what lies ahead.

 

MPs have set out some clear concerns - notably that people who don't have
access to off-street parking or who live in remote areas might struggle to
charge electric cars, and would be obliged to pay more for the power they
use.

 

They want the government to make sure this doesn't happen.

 

One issue raised is that different public charging networks currently have
their own payment and operating systems, making it difficult for drivers to
swap from one to another.

 

They want guarantees that as networks grow, they will be made more
compatible - and that pricing will be transparent.

 

Then there's what happens when millions of electric cars make demands on the
electricity grid.

 

Demand for power will rise, and MPs have voiced concerns that this could
lead to blackouts in parts of the country.

 

But as the report itself points out, industry bodies are confident that new
technologies which allow cars to be charged when pressure on the grid is
light, and even feed power back at peak times, should help the network to
manage.

 

Nevertheless, these are all legitimate concerns.

 

What seems clear is that MPs feel the government needs to provide more
coordination and guidance, to ensure that within a few years people will be
able to buy electric cars, use them, and charge them with a minimum of fuss.

 

An orderly revolution, in fact.

 

Jack Cousens, head of roads policy for the AA, said; "For most drivers, the
opportunity to charge an EV in their garage, on their driveway or in a
dedicated parking space offers cheaper running costs.

 

"However, for the 30% of homeowners with no access to dedicated off-street
parking or workplace charging, they have no choice but to pay the rates set
on the public charging network."

 

"On the road to electrification, we cannot allow one group of drivers to
benefit while others struggle - in effect, a two-tier system of have and
have-nots."

 

Benjamin Sovacool, professor of energy policy at the University of Sussex
Business School, said the pricing of charging "is a concern", and that
electric vehicles "benefit some people more than others".

 

Lower income areas, especially rural areas, spend about twice as much of
their income on mobility already, he said.

 

The UK government was approached for comment.-BBC

 

 

 

No gain without pain: Why China's reform push must hurt investors

(Reuters) - Carnage in China's financial markets signals the beginning of a
new era, investors say, as the government puts socialism before shareholders
and regulatory changes rip apart the old playbook.

 

Stocks and sentiment have taken a drubbing as Communist Party rulers seek to
remake the property, technology and education sectors to curb cost pressures
and better serve ordinary people.

 

The new model appears to place common prosperity, as President Xi Jinping
has put it, ahead of helter-skelter growth, investors say.

 

According to some analysts, it is the most significant philosophical shift
since former leader Deng Xiaoping set development as the ultimate priority
40 years ago.

 

"Chinese entrepreneurs and investors must understand that the age of
reckless capital expansion is over," said Alan Song, founder of private
equity firm Harvest Capital. "A new era that prioritises fairness over
efficiency has begun."

 

Bankers and investors say it was heralded last November when regulators
torpedoed the listing of Jack Ma's fintech Ant Group, publicly clipping Ma's
wings and burning the global funds that had paid up, anticipating a slice of
the world's biggest float.

 

In the nine months that have passed since, developers, commodity
speculators, crypto miners, other tech giants and, lately, tutoring firms,
have all faced radical rule changes or had regulators aggressively poring
over their businesses.

 

The Hang Seng Tech index (.HSTECH), launched with fanfare last July and
comprising internet darlings-turned-gargantuan blue chips such as Tencent
(0700.HK) and Alibaba (9988.HK), has cratered 40% since February to record
lows.

 

"The spectre of state intervention into controlling the private sector has
created a crescendo of panic-selling," analysts at investment bank Jefferies
said in a note. "The authorities are attempting to reduce social inequality
while clamping down on excessive price rises that are undermining the cost
of living."

 

Zhaopeng Xing, senior China strategist at ANZ, said the raft of policies,
unveiled around the Chinese Communist Party's centenary, underscores the
political will to reinforce the Party's roots.

 

"These policies were announced to reflect the Party's progressiveness" and
appeal to the masses, Xing said. "They send a message that China is not a
capitalistic country, but embraces socialism."

 

The messaging in the months running up to the Party's July 1 centenary was
also unequivocal, analysts say. "Common prosperity" is the over-riding
long-term goal, Xi said early this year, and China's development should be
centred on people's expectations of better lives, urban-rural gaps and
income gaps.

 

China's State Council Information Office did not immediately respond to a
request for comment.

 

"THREE MOUNTAINS"

 

Investors have so far responded with alarm that tipped on Tuesday towards
panic. They dumped health stocks (.HSHCI) in anticipation the sector will be
next in the firing line, even as the property and education sectors reel.

 

Housing, medical and education costs were the "three big mountains"
suffocating Chinese families and crowding out their consumption, said Yuan
Yuwei, a fund manager at Olympus Hedge Fund Investments, who had shorted
developers and education firms.

 

"This is the most forceful reform I've seen over many years, and the most
populist one. It benefits the masses at the cost of the richest and the
elite groups," Yuan said.

 

The free-falling share price of ride-hailing firm Didi (DIDI.N), which found
itself in regulators' sights days after its New York listing, has raised
questions about China's entire future engagement with foreign capital
markets.

 

Credit risks are also climbing in a country that is still recovering from
COVID-19 as authorities appear comfortable allowing state-linked or very
large corporations - previously seen as protected species - to teeter
towards default.

 

"Over the past 20 years, Chinese authorities could turn a blind eye to some
illegal business practices, tax evasion or wrongdoings, because the economy
enjoyed robust growth," said Ming Liao, founding partner of Beijing-based
private equity firm Prospect Avenue Capital.

 

Now that the economy is slowing down "the question becomes how to divide the
cake. Thus the need to weigh fairness against efficiency."

 

NEW PARADIGM As the Party prepares for a 20th national congress, which will
decide if Xi remains its general secretary for an unprecedented third term,
analysts think he will press on with his pillars for reform, one of which is
a thriving middle class.

 

The Party seems determined to emphasise its socialist roots and contrast
them against a perception of social problems in capitalist centres such as
Hong Kong, they say.

 

Investors also say that the resilience of exports provides a buffer for
policymakers to build a new growth leg from domestic demand and head off
dissatisfaction over inequality.

 

Although household income has outstripped economic growth, both are slowing
and, according to research published by the Institute of International
Finance (IIF), a trade association for banks, household earnings are still
below pre-pandemic levels.

 

The top 10% of families in China account for 47.5% of household wealth, the
IIF estimates, while a 2019 survey from recruitment firm 51job Inc showed
nearly 40% of parents spent 20-30% of their income on children's education -
seen as unsustainable.

 

"The old era has ended, and a new epoch has begun," said Jack Liu, a veteran
maths teacher at Gaotu Techedu Inc (GOTU.N), one of the firms upended by
education reforms.

 

"For many tutoring companies, a teacher's ROI (return on investment) is the
north star metric... In the future, industry players must fully understand
government policies, and unify the interest of individuals, companies, and
the country," he said.

 

Foreign fund managers say that they are holding their nerve, but changing
tack. Citi Private Bank said this week in a note it was increasing its China
exposure, but seeking domestically listed companies outside the crosshairs
of regulators.

 

Prashant Bhayani, chief investment officer in Asia at BNP Paribas Wealth
Management, was likewise looking for exposure to the broad sweep of onshore
equities outside the tech and education sectors as clients had questions on
the crackdown.

 

"We've seen concerns, not just from North America and Europe but also from
Asia, on what is the endgame on policy," he said.

 

"It's definitely a concern, in the sense that these are the areas that were
doing the best out of the pandemic and have been identified thematically as
mega-trends, so it's also about positioning."

 

The Thomson Reuters Trust Principles.

 

 

 

Asia shares sit at 2021 lows ahead of Fed verdict, China steadies

(Reuters) - Asian shares stayed stuck at seven-month lows on Wednesday, as
markets continued to digest a storm in Chinese equity markets, while
currency markets were quiet with traders wary of placing large bets prior to
the outcome of a Federal Reserve meeting.

 

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS)
dropped 0.31% in morning trading. Markets in Hong Kong and mainland China
stabilised after a sharp sell-off in the previous session, balancing
declines elsewhere in Asia.

 

Asian shares have fallen in each of the three previous sessions as
regulatory crackdowns in China roiled stocks in the technology, property and
education sectors, leaving international investors bruised. read more

 

Chinese state-run financial media urged calm first thing on Wednesday
morning, and while Chinese shares swung back and forth in early trading,
they did not repeat the sharp plunges seen earlier in the week.

 

Chinese blue chips (.CSI30) were last flat, having had a volatile start to
the day, and the Hong Kong benchmark (.HSI) gave up early gains to fall
0.24%. Both were still near eight-month lows.

 

The embattled Hang Seng Tech Index (.HSTECH) was last flat, also after a
volatile morning, a day after touching its lowest level since the index's
creation in July 2020. It is still down about 40% from its February high.

 

Japan's Nikkei (.N225) slid 1.15% to a six-month low, with shares in
SoftBank Group (9984.T), a major investor in Chinese tech, falling 3.68%.

 

U.S. stock futures, the S&P 500 e-minis , were flat.

 

"China and the Fed are the two key things for today," said Tai Hui, chief
market strategist for Asia Pacific, at JPMorgan Asset Management.

 

"We are still trying to digest the news from China, what's going to be new
is how the Fed view the latest round of (COVID-19) infections and whether
they need to readjust their view," he said.

 

The statement from the Fed policy meeting, and a press conference from
chairman Jerome Powell are due at 2 p.m. EDT (1800 GMT).

 

Markets will be watching closely for any hints on when the Fed will start
reducing its purchases of government bonds and any fresh insight into its
views on inflation and economic growth.

 

The declines in Asian equities on Tuesday spread to other markets overnight,
causing Wall Street to retreat a little from the record highs set earlier in
the week.

 

The Dow Jones Industrial Average (.DJI) ended Tuesday down 0.2%, the S&P 500
(.SPX) shed 0.5% and the Nasdaq Composite (.IXIC) slid 1.2%. Earlier, the
pan-European STOXX 600 index (.STOXX) finished 0.54% lower.

 

After the U.S. close, Google parent Alphabet Inc (GOOGL.O), Microsoft
(MSFT.O), and Apple (AAPL.O) all reported record quarterly earnings, though
the smartphone maker's shares slid in after-hours trading on the back of a
slower growth forecast. read more

 

In currency markets, the U.S. dollar sat below recent highs after a
month-long rally, the safe-haven yen gained and the risk-sensitive
Australian and New Zealand dollars dropped back.

 

Analysts at CBA attributed the moves to falling risk sentiment on the back
of the Chinese regulatory crackdown.

 

The yield on benchmark 10-year Treasury notes rose a little to 1.2478% from
a U.S. close of 1.234% on Tuesday.

 

Oil prices rose as industry data showed U.S. crude and product inventories
fell more sharply than expected last week, outweighing worries about the
consequences of surging COVID-19 cases. U.S. crude ticked up 0.73% to $72.17
a barrel and Brent crude rose 0.54% to $74.93 per barrel. Gold prices firmed
above the key psychological level of $1,800, while Bitcoin rose around 1%,
trading either side of $40,000.

 

To read Reuters Markets and Finance news, click on
https://www.reuters.com/finance/markets For the state of play of Asian stock
markets please click on:

 

The Thomson Reuters Trust Principles.

 

 

 

Apple says chip shortage reaches iPhone, growth forecast slows

(Reuters) - Apple Inc (AAPL.O) said on Tuesday that a global chip shortage
that has bit into its ability to sell Macs and iPads will start to affect
iPhone production and forecasted slowing revenue growth, sending its shares
lower.

 

Apple executives said revenue for the current fiscal fourth quarter will
grow by double-digits but be below the 36.4% growth rate in the just-ended
third quarter. Growth will also slow in Apple's closely watched services
business, they said.

 

In a conference call with investors, Apple executives also said that while
the impact of the chip shortage was less severe than feared in the third
quarter, it will get worse in the fourth, extending to iPhone production.

 

Shares of Apple, whose valuation has more than doubled in about three years
to nearly $2.5 trillion, were down 1.7% to $144.24 in after-hours trading
after the call.

 

Earlier in the day, Apple reported third-quarter sales and profits that beat
analyst expectations as consumers bought premium versions of its 5G iPhones
and signed up for its subscription services. China sales grew 58% to $14.76
billion in the quarter, which ended June 26.

 

Driven by the better-than-expected iPhone sales, total revenue hit $81.43
billion, above analyst expectations of $73.30 billion, according to IBES
data from Refinitiv. Apple's profits were $21.74 billion, or $1.30 per
share, above estimates of $1.01 per share, according to Refinitiv.

 

During the investor call, Chief Executive Tim Cook said that chips affected
by the shortages are made with older technology but are still needed as
supporting parts to make the company's flagship device, the iPhone.

 

"We do have some shortages," Cook said, "where the demand has been so great
and so beyond our own expectation that it's difficult to get the entire set
of parts within the lead times that we try to get those."

 

Cook declined to predict whether the shortages would last into Apple's
fiscal first quarter, when it typically sees its biggest iPhone sales.
Angelo Zino, an analyst with research firm CFRA, said Apple could be
stockpiling chips for its next generation of phones to the detriment of
current models.

 

"Apple will want as many chips as it can get its hands on," Zino said. "But
when you couple that with the existing supply constraints, Apple is likely
going to have a more difficult time meeting demand this year."

 

Apple had told investors last quarter that the chip shortage could hold back
sales by $3 billion to $4 billion.

 

In an interview on Tuesday, Cook told Reuters that the hit to overall
revenue in the third quarter was "lower than the low end" of its previously
forecasted range.

 

Apple's strongest sales growth came from China, where Cook told Reuters that
customers are buying up accessories such as the Apple Watch to pair with
their iPhones.

 

"It wasn't just iPhone. We set a new quarterly record for Mac, for
wearables, home and accessories, and for services" in China, Cook said. "It
was our strongest geography."

 

Upgrading for 5G appeared to be driving a better buying cycle for iPhones
than many analysts expected. Apple said iPhone sales were $39.57 billion, up
nearly 50% from a year earlier and above analyst expectations of $34
billion.

 

Cook told Reuters that Apple's iPhone 12 Pro and 12 Pro Max, the premium
tier of the device, were strong sellers. That helped pushed gross margins to
43.3%, above estimates of 41.9%, according to Refinitiv.

 

On the conference call, he said 5G adoption is in its early stages of
deployment in many countries around the world. Some analysts wondered
whether that means the boom in 5G iPhone sales won't last - consumers may
buy a phone ahead of time and keep it until the service rolls out. Other
analysts believe that means Apple can keep riding the boom.

 

"The low 5G penetration is a reminder that the best is yet to come for the
company's 5G iPhones," said Tom Forte, an analyst at D.A. Davidson & Co.

 

The other major driver of Apple's results was its services business, which
includes paid subscriptions for television and music as well as its App
Store. Services revenue reached a record high of $17.49 billion, up by a
third from a year earlier and above analyst expectations of $16.33 billion.
Cook told Reuters that Apple now has 700 million subscribers on its various
platforms, up from 660 million a quarter earlier.

 

Chief Financial Officer Luca Maestri told investors that services growth
will slow, however.

 

"We expect still-significant growth in services but not to the level that
we've seen in June," he said on the call.

 

Cook said Apple set quarterly sales records in many of its first-party
services, including its AppleCare hardware insurance plans, which had slowed
somewhat during the pandemic when many of the company's retail locations
were closed.

 

Sales of iPads and Macs were $7.37 billion and $8.24 billion, compared with
analyst expectations of $7.15 billion and $8.07 billion, according to
Refinitiv data.

 

Reporting by Stephen Nellis in San Francisco and Danielle Kaye in New York
and Subrat Patnaik in Bengaluru; Editing by Sonya Hepinstall

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Google parent Alphabet reaches record quarterly revenue, profit in ad boom

(Reuters) - Google parent Alphabet Inc's (GOOGL.O) quarterly revenue and
profit surged to record highs, the company reported on Tuesday, powered by a
rise in advertising spending as more consumers shopped online.

 

Shares of Alphabet, the world's largest provider of search and video ads,
rose 3.3% in extended trading after the results, which handily beat analyst
estimates. Shares of Facebook, which competes with Google in web ad sales
and reports its own results on Wednesday, rose 1.3%.

 

Overall, it was a stellar day for the big U.S. tech companies - Apple and
Microsoft also reported record earnings.

 

With consumers spending more time online during the coronavirus pandemic,
retailers have been pushing to reach them there, whether they're shopping
for products using Google search or watching videos on YouTube. The nascent
U.S. economic rebound that's accompanied the vaccine rollout and the easing
of restrictions is also helping as consumers are enjoying increased mobility
and options for purchases of all kinds.

 

"Alphabet has benefited from the general return of ad spend to the market
and especially the balance of that return, which is more focused on digital
channels than pre-pandemic," said Tom Johnson, chief digital officer at WPP
Mindshare.

 

Alphabet said revenue from Google advertising rose nearly 70% to $50.44
billion during the second quarter ended June 30.

 

Retail brands were the biggest contributor to the ads business' growth, said
Philipp Schindler, Google's chief business officer, during a call with
analysts. The travel, financial services and media and entertainment sectors
were also strong, he added.

 

Ad revenue for the company's streaming video platform YouTube jumped 83.7%
from the year-ago quarter to $7 billion - nearly as much as Netflix
generated in quarterly revenue.

 

Results "outperformed our expectations across all three lines of Google's ad
business: search, Google Network, and YouTube," said Nicole Perrin,
eMarketer principal analyst at Insider Intelligence. "YouTube was the
fastest-growing segment during the quarter and points to the continued
strength of video advertising for both direct response and brand goals."

 

Total revenue for Alphabet rose 61.6% to $61.88 billion, well above Wall
Street estimates of $56.16 billion, according to IBES data from Refinitiv.

 

Quarterly profit was $18.5 billion or $27.26 per share, beating expectations
of $19.34 per share.

 

Google Cloud, which trails Amazon.com Inc (AMZN.O) and Microsoft Corp
(MSFT.O) in market share, narrowed its operating loss to $591 million during
the quarter.

 

The strong results coincide with Alphabet facing four antitrust lawsuits
brought by U.S. federal regulators or states, which threaten to force major
changes across its business including advertising and smart-home gadgets. 

 

Most recently, 37 U.S. state and district attorneys general alleged earlier
this month that Google "unlawfully" maintained a monopoly for its app store
on Android phones. The lawsuits are expected to take years to resolve.  

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

BoE set to keep full-speed stimulus despite split over inflation risk

(Reuters) - The Bank of England looks set to keep its stimulus running at
full speed next week despite two policymakers breaking ranks to suggest that
its nearly 900 billion pound ($1.2 trillion) bond-buying scheme might have
to end early as inflation speeds up.

 

Britain's economy is rebounding quickly from its almost 10% crash of 2020,
when the country suffered a higher COVID-19 death toll and longer lockdowns
than most other nations.

 

With consumers back in shops, bars and restaurants and fuel prices leaping
as the global economy fires up, inflation has sped past the BoE's 2% target
and is on course to surpass 3%.

 

Many investors are betting the BoE will raise interest rates before the U.S.
Federal Reserve, even though the U.S. economy has already recovered its
pre-pandemic size, unlike Britain's.

 

Two BoE rate-setters - Deputy Governor Dave Ramsden and Michael Saunders -
have said the time for tighter policy might be nearing, raising the prospect
of the BoE curtailing its bond-buying programme sooner than planned. read
more

 

But colleagues have signalled they think the bigger risk would be to stop
the bond-buying programme before its scheduled end in late 2021. That could
hurt the still incomplete recovery in the world's fifth-biggest economy.

 

Finance minister Rishi Sunak is phasing out furlough payments along with
other parts of his pandemic safety net, and a recent slowing of COVID-19
cases could prove fleeting.

 

"I think it will remain appropriate to keep the current monetary stimulus in
place for several quarters at least, and probably longer," Monetary Policy
Committee member Gertjan Vlieghe said on Monday.

 

INFLATION SIGNALS

 

Key to the BoE leaving the stimulus programme unchanged is its view that the
jump in inflation will prove short-lived.

 

In May, the BoE said it expected consumer price inflation would peak at
about 2.5% in late 2021 although it was then forced to raise that to above
3% in an interim forecast in June.

 

The new quarterly projections due on Aug. 5 are likely to see a new peak of
3.5%, which would nudge up the BoE's closely watched forecasts for inflation
in two and three years' time to its 2.0% target, according to economists at
HSBC.

 

That would be taken by investors as an implicit backing of recent market
pricing for a May 2022 hike of 15 basis points taking Bank Rate to 0.25%, up
from its all-time low of 0.1% now, and a further 25 basis point hike a year
later, they said.

 

"This is more tightening and sooner than was expected in May, when the first
15 basis point move was not priced until early 2023," HSBC economist
Elizabeth Martins said.

 

Other economists expect the BoE to raise rates in the second half of 2022 or
only in 2023.

 

HOW TO TIGHTEN?

 

Investors are also waiting for the BoE to publish new guidance on how it
would sequence raising interest rates with shrinking its bond-buying
programme, either by not reinvesting the cash from maturing bonds or by
actively selling bonds.

 

Vlieghe said on Monday that the BoE would publish its review "soon" but like
other MPC members he declined to give precise details on any timing.

 

Deutsche Bank economist Sanjay Raja predicted the BoE would announce its
strategy next week and say that it was lowering the Bank Rate threshold at
which it would start to unwind its balance sheet to 0.25% - much lower than
the existing 1.5% trigger - or simply scrap the threshold altogether.

 

That would allow the BoE to crack on with the task of shrinking its massive
balance sheet, possibly in mid-2022.

 

"Unlike the previous tightening, the MPC will target the Bank's balance
sheet more so than the policy rate," Raja said.

 

($1 = 0.7239 pounds)

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

German consumer morale steady heading into August- GfK

(Reuters) - German consumer sentiment held steady heading into August as
shoppers grew more ready to spend, but took a less upbeat view on the
economic outlook than a month earlier on worries about rising numbers of
COVID-19 cases, a survey showed on Wednesday.

 

The GfK institute said its consumer sentiment index, based on a survey of
around 2,000 Germans, was unchanged at -0.3 points. The reading compared
with a Reuters forecast for 1.0.

 

After more than two months of steady decline, COVID-19 cases have been
rising since early July, due mainly to the spread of the more infectious
Delta variant.

 

"This is currently preventing a further significant increase in consumer
sentiment," GfK consumer expert Rolf Buerkl said in a statement, but he
added that the domestic economy would make a positive contribution to growth
in the second half of the year.

 

Roughly 60% of Germany's 83 million people have had a first shot of a
COVID-19 vaccine and about half are fully vaccinated.

 

A separate survey published on Monday showed German business morale fell
unexpectedly in July on continuing supply chain worries and amid rising
coronavirus infections, posting its first decline since January. 

 

NOTE - The survey period was from July 1 to 12, 2021.

 

The consumer climate indicator forecasts the development of real private
consumption in the following month.

 

An indicator reading above zero signals year-on-year growth in private
consumption. A value below zero indicates a drop compared with the same
period a year ago.

 

According to GfK, a one-point change in the indicator corresponds to a
year-on-year change of 0.1% in private consumption.

 

The "willingness to buy" indicator represents the balance between positive
and negative responses to the question: "Do you think now is a good time to
buy major items?"

 

The income expectations sub-index reflects expectations about the
development of household finances in the coming 12 months.

 

The additional business cycle expectations index reflects the assessment of
those questioned of the general economic situation in the next 12 months.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Aston Martin's first SUV helps push up sales by more than 200%

(Reuters) - Carmaker Aston Martin (AML.L) reported on Wednesday a 224%
increase in sales to its dealers, boosted by its first sport utility
vehicle, the DBX, as losses fell in the first half of the year.

 

The DBX 4x4, which first rolled off the production line just over a year
ago, accounted for more than half of its 2,901 vehicles between January and
June.

 

"Building on the success of DBX, our first SUV, we have since delivered two
more new vehicles and with more exciting product launches to come we are
well positioned for growth," said Executive Chairman Lawrence Stroll.

 

Fictional agent James Bond's car brand of choice has had a tough time since
floating in 2018, as it failed to meet expectations and burnt through cash,
prompting it to bring in fresh investment from billionaire Stroll last year.

 

The DBX entered production in July 2020 and has helped the company widen its
appeal in a lucrative segment of the market which has proven profitable for
its rivals.

 

Its pretax loss fell from 227 million pounds in the first half of 2020 to 91
million pounds ($126 million), with the company saying trading was in line
with expectations as it aims for 2021 volumes of around 6,000 vehicles.

 

($1 = 0.7209 pounds)

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Wizz Air sees summer capacity close to pre-pandemic levels

(Reuters) - Hungarian airline Wizz Air (WIZZ.L) said it expected capacity to
ramp up to between 90% and 100% of pre-pandemic levels in July and August as
summer demand for European travel grows, and any further easing of UK
restrictions could provide an added boost.

 

Britain is set to exempt fully vaccinated travellers from the European Union
from quarantine in the coming days according to reports, which would help it
catch up with the EU, which has allowed more travel since July 1.

 

"Continental Europe has been more open for travel and as a result, demand
has reacted much quicker and much more robustly for summer," Wizz Air Chief
Executive Jozsef Varadi told Reuters on Wednesday.

 

Larger competitor EasyJet (EZJ.L) also said last week that bookings from
Europe were outpacing Britain. read more

 

For the three months to the end of June, Wizz's first quarter period, the
company flew 33% of its pre-pandemic capacity, a total of 2.95 million
people.

 

Varadi said he could not give guidance beyond August as it was too difficult
to predict giving changing restrictions and the risk of new variants.

 

Wizz, which competes with larger airline Ryanair (RYA.I) to offer the
cheapest fares in Europe, reported an underlying net loss of 118.7 million
euros and liquidity of 1.7 billion euros.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Microsoft sees steady cloud growth after record quarterly profit

(Reuters) - Microsoft Corp (MSFT.O) posted its most profitable quarter on
Tuesday, beating Wall Street expectations for revenue and earnings, as PC
sales declines stemming from a global chip shortage were more than made up
for by a boom in cloud services.

 

Shares ticked up 0.7% after Microsoft projected that growth in its Azure
cloud computing business will continue apace following a quarter in which
sales climbed 51%.

 

Overall revenue rose 21% to $46.2 billion, beating analysts' consensus by
about $2 billion, according to IBES data from Refinitiv.

 

The pandemic-driven shift to remote work has boosted consumer appetite for
cloud-based computing, helping companies including Microsoft, Amazon.com
Inc's (AMZN.O) cloud unit and Alphabet Inc's (GOOGL.O) Google Cloud.

 

Microsoft's "guidance was off-the-charts strong and it shows the cloud
growth story in Redmond is hitting its next gear," said Daniel Ives of
Wedbush Securities.

 

Revenue in Microsoft's "Intelligent Cloud" segment rose 30% to $17.4
billion, with growth in Azure revenues handily surpassing the 43.1% jump
projected by analysts, according to consensus data from Visible Alpha.

 

Microsoft's market capitalization stands at nearly $2.2 trillion, after
climbing nearly 30% so far this year, compared with 18% for the overall S&P
500 Index (.SPX), according to Refinitiv Eikon data based on Monday's
closing price.

 

It has surpassed the price-to-earnings ratios of tech titans Apple Inc
(AAPL.O) and Google, fueling concerns among some analysts that it may be
overvalued.

 

"Microsoft's stock has made a big run since the beginning of the pandemic,
and is trading at rich multiples," said Haris Anwar, senior analyst at
Investing.com. "After such a powerful rally, its shares may take a breather,
especially when investors are still unclear how the demand scenario will
evolve in the post-pandemic environment."

 

Revenue from personal computing, which includes Windows software and Xbox
gaming consoles, rose 9% to $14.1 billion.

 

But Xbox content and services revenue dipped, suggesting that a
pandemic-fueled gaming boom is beginning to wane, said Paolo Pescatore, an
analyst at PP Foresight. The company must strengthen its presence in the
home to better compete with rivals, he added.

 

As makers of cars to smartphones grapple with an unprecedented chip
shortage, Microsoft has not been immune.

 

"OEM revenue declined 3% and Surface declined 20%," Microsoft Chief
Financial Officer Amy Hood said on a call with analysts. She added that
"both were impacted by the significant supply constraints noted earlier in a
good demand environment."

 

The chip shortage could also be contributing to Microsoft's dip in Xbox
content and services revenue, as constrained hardware sales lead to a weaker
performance in services, Ives said.

 

"If there's any lagging part of Microsoft, it's the consumer piece," he
said. "I think that continues to be a work in progress."

 

Microsoft projected strong growth for professional social network LinkedIn,
which benefited during the quarter from robust advertising and a
strengthening job market.

 

The company reported earnings of $2.17 per share, above the consensus
estimate of $1.92.

 

The Thomson Reuters Trust Principles.

 

 

 

Rwanda: Govt to Engage Banks, Rra in Bid to Recover Embezzled Funds

The Ministry of Justice has said that it is working on 'fresh measures' that
will help it to recover billions of embezzled public funds.

 

The New Times has learnt the ministry managed to recover only 13.7 per cent
or Rwf303.1 million out of Rwf2.2 billion it had targeted to recover in the
last fiscal year.

 

Emile Ntwali, the Director General in charge of Legal Advisory Services at
the ministry, told The New Times that at least 819 people who embezzled the
funds are being pursued.

 

The new measures, he said, were also recommended by 17th National Leadership
Retreat, among whose resolutions included one to "investigate and prosecute
cases of corruption and institute a recovery mechanism for embezzled public
funds."

"We have not met our goal to recover the whole Rwf2.2 billion that we were
targeting in the 2020/21 fiscal year. But we have set a new target to
recover at least Rwf1.8 billion this fiscal year.

 

The low recovery of the funds was mainly driven by the disruption by
Covid-19 pandemic, he said, adding that it was also hampered by the reform
of the IECMS system used in cases' judgement execution that delayed the
executions of court decisions," he explained.

 

IECMS is the Integrated Electronic Court Management System.

 

The other include the fact that some of the debtors declare having no
financial capacity saying they do not have property to be auctioned to
recover the money.

 

Others, he said, have properties but their value can't pay the money owed to
the government.

 

 

Ntwali said that people who owe money to the government lost cases in
different years, especially from 2013 to 2019.

 

"Most of the cases in which we have to recover the funds were recorded in
the last three years because judgments for those from 2013 were executed
since 2014 and there remain few of them that faced different challenges," he
said.

 

Fresh recovery measures

 

The official said that besides sensitizing debtors to pay, the government is
drafting a law governing the pursuit of public servants that make the
government incur losses and the recovery of funds from the cases that the
government won as well as unpaid fines.

 

"The draft bill is still being refined," he said.

 

He added that the ministry also plans to work with different institutions to
fast-track the recovery of embezzled public assets.

 

These, he said, include National Identification Agency, Rwanda Land
Management and Use Authority (RLMUA),Rwanda Revenue Authority, Rwanda Social
Security Board (RSSB), Rwanda Directorate General of Immigration and
Emigration, TransUnion Rwanda and banks, Rwanda National Police and
professional bailiff association among others.

 

 

"These institutions offer services to people who embezzled the money and
some know where they are located, information about their properties
both-immovable and movable.

 

For instance, banks will help tell their clients to first pay money owed to
the government to ensure trust in them before accessing bank services," he
explained.

 

Ntwali added that having realized that people-who owe money to government
have no immovable or movable properties that can be sold, the ministry is
working with RSSB to check if they have employment/jobs that can help
government recover the funds they embezzled.

 

"We will also share the list with different institutions that will help to
investigate if they really have no properties. We will also work with
revenue authority to see if these people have businesses or other income
generating activities we can sell and recover embezzled public funds," he
said.

 

He added that the districts have also integrated courts judgments execution
in their performance contracts adding the ministry of justice has also
entered agreements with professional bailiffs.

 

"There are 68 bailiffs with contracts to execute 345 case judgments worth
Rwf6 billion. More than 35 bailiffs will get contracts soon so that they
help to recover the funds by force," he noted.

 

He added that some of those who embezzled public funds have been imprisoned
and some have completed their imprisonment but they still have to pay back
embezzled funds.

 

New Times.

 

 

 

Nigeria: AMCON Takes Over NICON

Abuja — The Asset Management Company of Nigeria, AMCON, has effectively
taken over National Insurance Corporation of Nigeria, NICON Insurance.

 

NICON Insurance was privatised in 2005 with the core investor having 70 per
cent shares, and the Federal Government retaining 30 per cent.

 

The Federal Government shares were later diluted but the fortunes of the
company continued to decline, with the core investor allegedly using most of
the assets as collateral to collect loans from banks.

 

This prompted AMCON to take over affairs of the company, a decision the core
investor went to court to challenge.

 

The court ruled in favour of AMCON but the investor went on an appeal and
the court asked the parties to maintain the status quo, which led to
Monday's take over by the new board.

The Bureau of Public Enterprises, BPE, said in a statement, yesterday, that
a new board took over the company and pledged to turn around its fortunes.

 

Addressing a handful of NICON's management staff, led by the Deputy General
Manager, Corporate Advocacy, Mr. Kunle Adewale, the interim board chairman,
Lamis Dikko, called for cooperation with the board to reposition the
insurance company which he described as a national legacy.

 

He said the meeting was a prelude to last Friday's meeting of the board
where far-reaching decisions, including the immediate termination of the
appointments of the erstwhile managing director and executive directors of
the insurance company were taken.

 

Dikko said the mandate of the new Board was to preserve NICON Insurance as a
going concern until a new investor came aboard as the previous owner had
woefully failed to sustain and maintain the organisation.

He said all staff that were desirous to stay back and work for the good of
the organisation had nothing to fear but should support the new board to
turn around the fortunes of the company.

 

Director General of BPE, Mr. Alex Okoh, also a board member, lamented the
decay at the place and said it was one of the few bad cases of privatisation
in the country.

 

He regretted that the enterprise, which was a going concern before
privatisation was grossly mismanaged, appealed to the management and staff
to collaborate and cooperate with the Board on its rescue mission to bring
NICON insurance to operational vibrancy and on a pedestal to divest again.

 

Also speaking, the interim Managing Director, Mr. John Oyidiih, charged the
workers to cooperate with the Board and management to reclaim the lost glory
of the insurance company "which is an institution and can't be allowed to go
down," adding that "you do not need to hold an allegiance to any individual
but the institution."

Vanguard.

 

 

Kenya: Inside Sh1.76bn Lamu Port Compensation Heist

The presence of 'strangers' in a list of fishermen expected to share a
compensation package of Sh1.76 billion following the construction of the
Lamu port has rubbed many the wrong away.

 

There have been complaints from fishermen that there were dubious processes
that had allegedly seen names of public servants being introduced as
beneficiaries.

 

Most of them reportedly work with Kenya Ports Authority (KPA), Kenya Revenue
Authority (KRA), Ministry of Health and the police service.

 

The Lamu Port-South Sudan-Ethiopia-Transport (Lapsset) task force on
fishermen compensation confirmed yesterday that names of KPA staff, civil
servants and security officials had been sneaked into the final list.

 

Speaking to the Nation, the task force said some had been listed as "either
next of kin, or owners of fishing vessels that were affected by the
construction."

Public servants

 

"We have names of KPA, KRA and health staff as well as police officers and
other public servants in the list of those to be compensated. It isn't
something to worry about since those that are included are next of kin or
fishing boat owners who were also affected by Lapsset activities at
Kililana," said the chair of the Lamu County Beach Management Unit (BMU)
Network, Mr Mohamed Somo, a member of the task force.

 

He said the entire process of identification, verification and approval of
the affected fishermen had been done in a transparent and fair manner. He
said they were at their final stage of verifying bank details of all
beneficiaries.

 

"We have cases where the father, who was the fisherman, died. The son, who
is the only individual authorised to sign, is a public servant. That's not a
reason to deny them their rightful compensation," said Mr Somo.

Mr Mohamed Athman, a task force member, said the existence of civil servants
should not be a problem.

 

"Having KPA, KRA or health staff in the list of Lapsset beneficiaries isn't
a big issue. They are the next of kin. Others are businessmen in the fishing
sector while some are boat owners. They were also affected by the dredging
and deserve compensation," said Mr Athman, who is also the chair of Save
Lamu, a non-governmental organisation.

 

Lack of co-operation

 

Mr Athman, however, lamented the lack of co-operation from KPA in finalising
the deal. He threatened to organise a demonstration if the delay in
compensating fishermen continues.

 

"The only complication delaying the process is at KPA. They seem unwilling
to cooperate and finalise the deal. If this continues, we won't hesitate to
picket so that our cries can be heard out there," he said.

 

KPA head of corporate affairs Bernard Osero dismissed claims port staff
would also benefit from the package.

"The role of KPA, which we have already done, is to facilitate the
community, especially the BMU officials in obtaining the right list and bank
accounts of those to be compensated," said Mr Osero.

 

"We believe in the BMU leadership and it's not our fault if among those in
the list received will be fake claimants. What we know is that we will be
compensating fishermen affected by the Lapsset project."

 

He also defended the authority from claims that it was behind the delay in
compensation.

 

Verifying bank account

 

"We have started verifying bank account numbers of the affected fishermen.
This week, we are organising a special meeting with lawyers from KPA and
Save Lamu to finalise on the pending issues, including signing of the
consent note before compensation can begin. There is no course for alarm,"
said Mr Osero.

 

In May, 2018, the High Court awarded 4,734 Lamu fishermen Sh1.76 billion as
compensation owing to the adverse effects brought about by the construction
of the Lamu port at Kililana.

 

The fishermen had argued that they would no longer be able to carry on with
their venture due to dredging activities. They said their livelihoods would
eternally suffer and, as such, deserved compensation to enable them to
pursue alternative livelihoods.

 

The government had promised to release the money by the end of May after it
was agreed that the processes would be concluded out of court. So far
nothing has materialised.-Nation.

 

 

 

 

 


 


 


Invest Wisely!

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

Dairibord

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


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