Major International Business Headlines Brief::: 30 July 2021

Fri Jul 30 11:57:07 CAT 2021

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Major International Business Headlines Brief::: 30 July 2021

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

ü  Didi: Chinese ride-hailing giant denies plans to go private

ü  British Airways owner IAG to ramp up flights

ü  Bumble to give staff unlimited paid holiday

ü  Amazon predicts slower sales growth as Covid boost eases

ü  The fungus and bacteria tackling plastic waste

ü  Empty shop numbers rise as Covid continues to bite

ü  Dairy giant Arla says driver crisis hitting milk supply

ü  Robinhood has a muted stock market debut

ü  Asian shares extend losses, set for worst month since March 2020

ü  Credit Suisse creates new asset management risk role

ü  Renault sees 2021 profit despite chip crunch, raw material costs

ü  Germany's economy expands less than expected in Q2

ü  SoftBank Q1 performance seen buoyed by China IPOs; crackdown clouds outlook

ü  Nigeria: Govt Assures On Timely Delivery of AKK Gas Pipeline Project

ü  Nigeria: Govt Urged to Save 5% GDP Earning for Emergency

ü  MSMEs in Ethiopia to Access Finance through a New Agreement between Bank of Abyssinia and Four Private Micro Finance Institution

ü  Uganda Petitions Kenya, Tanzania Over Milk Exports

 <mailto:info at bulls.co.zw> 

Didi: Chinese ride-hailing giant denies plans to go private

Chinese ride-hailing giant Didi has denied a report that it was considering going private to appease Chinese authorities.

Its shares had soared by almost 50% in Thursday's pre-market trade after the Wall Street Journal report.

Since making its US market debut a month ago the company has been targeted by authorities in Beijing.

Meanwhile, some US senators have called on its financial markets regulator to investigate Chinese share listings.

"The rumors about the privatization of Didi are untrue, and the company is currently actively cooperating with cybersecurity reviews," the company said on Chinese social media platform Weibo.

The statement came in response to a Wall Street Journal report, which cited people familiar with the matter as saying Didi was considering delisting its share in the US as it faced increasing pressure from regulators in China.

Two days after Didi shares started trading on the New York Stock Exchange, China's internet regulator ordered online stores not to offer its app, saying it illegally collected users' personal data.

That sent the company's market value down sharply and it has now fallen by around a third since Didi raised $4.4bn (£3.15bn) in its initial public offering (IPO) a month ago.

On Thursday, a group of Republican senators called on the country's financial markets regulator to launch an inquiry into US-listed Chinese companies.

In the letter to the head of Securities and Exchanges Commission the seven lawmakers cited losses sustained by Didi investors after Beijing's took action against the company.

In recent months Chinese technology companies traded in the US, Hong Kong and mainland China have seen their share prices slump as Beijing tightens its grip on the industry.

Just this week authorities have cracked down on a range of online services from food delivery apps to music streaming platforms.

Didi shares ended Thursday's US trading day up by 11.3%.--BBC

British Airways owner IAG to ramp up flights

British Airways owner IAG is ramping up its flight schedules as global air travel restrictions ease.

IAG said it would operate at about 45% of passenger capacity between July and September on pre-Covid levels, possibly rising to 75% by the end of 2021.

It comes as the company, which also owns Aer Lingus and Iberia, revealed a loss of more than €2bn (£1.7bn) in the six months to the end of June.

But IAG said it was not currently considering further redundancies.

The airline group has been hit hard by the coronavirus collapse in travel, with revenues and profits plunging after operators were forced to ground aircraft.

Chief executive Luis Gallego said on Friday the company had the "flexibility to capitalise" in areas where demand has increased due to travel restrictions easing.

However, the company warned that its plans to increase flight numbers "remain uncertain and subject to ongoing review".

'Important step'

Mr Gallego said: "We know that recovery will be uneven, but we're ready to take advantage of a surge in air travel demand in line with increasing vaccination rates."

He welcomed the UK's decision that fully-vaccinated travellers from amber-list countries in the EU and US would no longer be required to quarantine when arrived home.

The rule change will come into force at 04:00 BST on Monday.

"We see this as an important first step in fully reopening the transatlantic travel corridor," he said.

IAG reported total revenues of €2.2bn (£1.87bn) for the first six months of the year, down from €5.3bn for the same period last year, and an operating loss of €2.03bn.

Laura Hoy, equity analyst at Hargreaves Lansdown, said IAG's management had done a "terrific job making the most of a bad situation, but added "you can't dress up the fact that IAG is in a terrible position right now".

She said: "Long-haul traffic will be last to recover, and IAG's position within Europe means it's at the mercy of many of different government restrictions.

"The group doesn't expect passenger demand to return to pre-pandemic levels until 2023 at the earliest, leaving no choice but to continue paring down operations. This will undoubtedly leave scars that will follow the group well into the future."

'Our plan is to fly'

Mr Gallego said British Airways saw a 95% increase in the number of bookings for flights from the US to the UK shortly after Wednesday's announcement on easing travel rules, compared with the same period last week.

Asked if the planned ending of the furlough in September could lead to more UK job losses, he replied: "What we would like is to have an extension of the furlough scheme until the end of the year."

He added: "Right now, we are not considering to reduce jobs more, but for sure we need to see the evolution of the situation.

"With the plans that we have right now, our plan is to fly, people want to fly, and for that we're going to need our people."

In April 2020 British Airways announced it would cut up to 12,000 jobs in response to the Covid crisis.

Air France-KLM, which compared to BA has benefited from the earlier opening of services from Europe to the US, said it expected third quarter capacity at 60-70% of 2019 levels.

Short-haul rivals EasyJet and Ryanair are aiming for 60% summer capacity and July passenger numbers at two-thirds of 2019 levels respectively.

Airlines, and the travel industry generally, say they face another lost summer for trading, even if travel restrictions continue to ease.

Transport Secretary Grant Shapps told the BBC on Friday that a decision on France's place in the international travel traffic-light system is not expected until next week.

France is currently on the amber-plus list, with holidaymakers returning from the country being required to self-isolate.

Asked if that also means waiting to hear whether Spain will join the amber-plus list, Mr Shapps said: "That's right. I would encourage people to broadly ignore the sort of ongoing speculation as much as is possible."

He added: "One thing I have seen over the last year with all this going on is that, quite often, the speculation is not all that helpful, or all that accurate indeed.-BBC

Bumble to give staff unlimited paid holiday

Dating app Bumble has said its 700 employees can take unlimited paid leave providing their manager approves it.

It is understood that the unlimited holiday is contingent on staff still managing to complete their work.

The move comes after the firm temporarily closed its offices in June for a week to combat workplace stress.

The new leave policy was announced alongside a series of other changes, including a plan to shut the office for a week two times a year.

Bumble said the pandemic had made it "reflect on" the ways staff worked and prompted the change in approach.

"It's becoming increasingly clear that the way that we work, and need to work, has changed and our new policies are a reflection of what really matters and how we can best support our teams in both their work and life," said Bumble president Tarek Shaukat.

Bumble said when the firm shuts down, some customer staff across its offices in Austin, Barcelona, London and Moscow will still work in case any of the app's users experience issues.

A year of working from home and juggling childcare when schools were closed and other responsibilities mounted, has prompted many businesses to look again at the traditional working week.

Accountancy firm Price WaterhouseCooper said earlier this year that staff would be able to work from home a couple of days a week and start as early or late as they wanted.

The building society Nationwide also told its staff they can choose whether to work at home or in the office. Oil giant BP has told office staff they can spend two days a week working from home and several banks are examining hybrid home-office arrangements.

'People are bad at taking holiday'

Pre-pandemic some small firms already offered staff unlimited leave, including the oboss of Virgin Group, Sir Richard Branson, who offered his 170 personal staff as much holiday as they wanted.

But critics say it can backfire, with staff actually taking less holiday as a result.

Ben Gately, chief operating officer at UK software firm CharlieHR, ended up offering staff other benefits such as more flexible working hours instead.

"People didn't take enough [holiday]," Ben Gately told the BBC at the time.

"People are pretty bad at taking holiday, we're all scared to do it because we have to do our handovers and pass stuff over and meet deadlines.

"There's a huge amount of anxiety about not knowing the limit. A bunch of our team came to us and said: 'Actually we'd love to know where the line is. Is it okay to take 35 days? Is it okay to take 25 days? Where should I draw the line?' Because the reality is that it's not actually unlimited."

Bumble has said it's also offering staff additional types of paid leave including 20 days for staff who are victims of domestic violence and other violent crimes and a minimum of 15 days bereavement leave for miscarriages.

Lisa King OBE, director of communications and external relations at domestic abuse charity Refuge, told the BBC more workplaces needed to be empathetic to employees who may be experiencing domestic abuse.

"Domestic abuse is the biggest social issue impacting women and children and it's great to see that companies are beginning to recognise this and place it at the centre of their policies. We hope that other companies follow their lead," she continued.

Bumble has had a busier year than most firms, with a stock market debut, and rapid growth in user numbers.

With lockdown restrictions, the dating app saw a the number of paid users across Bumble and Badoo, which Bumble also owns, up by 30% to 2.8 million, in the three months to 31 March, compared with the same period last year.

Its founder Whitney Wolfe Herd also became the youngest woman, at 31, to take a company public in the US when she oversaw Bumble's stock market debut in February. Bumble shares however, have shed 25% since the company's initial public offering in February.

Ms Wolfe Herd also co-founded dating app Tinder, but left the firm alleging sexual harassment. Tinder's parent company Match Group Inc, which denied the claims and later tried unsuccessfully to acquire Bumble, paid about $1m to settle the dispute.

The company has 42 million monthly users in over 150 countries and recently announced plans for a new café and wine bar in New York.-BBC

Amazon predicts slower sales growth as Covid boost eases

Amazon has predicted slower sales growth in the third quarter as a boost from the Covid pandemic subsides.

Customers turned to Amazon and other online platforms during the Covid crisis, leading to record profits for the US giant.

But Amazon's breakneck growth is beginning to level as customers start to return to bricks and mortar shops.

Revenue climbed 27% to $113bn (£81bn) in its second quarter, but this missed analysts' expectations.

Amazon shares fell more than 7% in after-hours trade.

Earlier in the Covid pandemic Amazon posted record profits, signed up more than 200 million customers to its Prime service, and recruited more than 500,000 workers to keep up with surging demand.

But vaccine rollouts and easing of restrictions have led some consumers to venture out to stores, while also using click-and-collect services, in competition with the speedy delivery of online orders provided by Amazon and its peers.

Amazon's net sales rose to $113.08bn in the second quarter to 30 June from $88.91bn in the same period a year earlier. Analysts on average had expected $115.20bn.

The world's biggest online retailer had moved its annual marketing bonanza, Prime Day, to June this year, hoping to sell more goods before shoppers went on holiday.

It said the event was the biggest two-day sales period ever for merchants on its platform.

But in the second quarter analysts have seen signs of slowing demand.

North America, Amazon's largest market, saw sales increase 22% in the second quarter, versus 43% in the same period a year earlier.

But profit rose 48% to $7.8bn, the second-largest quarterly result Amazon has ever announced.

The retail giant's founder Jeff Bezos stepped down as chief executive on 5 July, becoming executive chair of Amazon's board.

Andy Jassy took on role, after previously being in charge of Amazon's cloud computing division, Amazon Web Services (AWS).

In the second quarter AWS was a bright spot, seeing revenue rise by 37% to $14.8bn.

Mr Jassy said: "Over the past 18 months, our consumer business has been called on to deliver an unprecedented number of items, including PPE [personal protective equipment], food, and other products that helped communities around the world cope with the difficult circumstances of the pandemic.

"At the same time, AWS has helped so many businesses and governments maintain business continuity, and we've seen AWS growth reaccelerate as more companies bring forward plans to transform their businesses and move to the cloud."

Amazon's are the latest results from Big Tech this week. Apple, Microsoft and Google's parent firm Alphabet all reported soaring profits as the Covid pandemic continues. Facebook, however, said that it expects revenue growth to slow.

Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: "It's saying something when you can report quarterly sales roughly equal to the annual GDP of Ukraine and 33% operating profit growth and still disappoint the market.

"You can see why Jeff Bezos would rather be jetting off into space.

"In all seriousness though, Amazon is increasingly bumping up against the law of large numbers - particularly in US retail.

"When you're only selling $1,000 of product a year, boosting sales by 40% is easy. When your annualised sales reach $400bn, finding an extra $160bn of sales is pretty difficult."

Mr Hyett said that means that Amazon is having to spend a lot to deliver future growth.

"The group's got plenty of irons in the fire for the future, it just needs to hope one of them comes off big," he added.

The top job that Mr Jassy inherited has never been bigger and more complex.

Last quarter Amazon, the biggest online retailer in the world, announced a deal to buy the film studio MGM for $8.5bn, expanding in Hollywood at the same time as it is running a grocery chain, building a healthcare business and facing scrutiny from regulators worldwide.

Costs also continue to rise. The company has offered an average $17 in hourly wages - more than double the US minimum - plus signing bonuses to attract 75,000 workers during a labour shortage.-BBC

The fungus and bacteria tackling plastic waste

Samantha Jenkins was studying a number of types of fungus in a research project for her company, when one of the fungi made a bid for freedom.

"Imagine a jar full of grain with a kind of lump of mushroom coming out of the top," says the lead biotech engineer for bio-manufacturing firm Biohm.

"It didn't look particularly exciting or fascinating. But as soon as it was cracked open, it was very, very cool."

The fungus had eaten its way through the plastic sponge intended to seal it in, breaking it down and assimilating it like any other food.

The aim of the project was to evaluate a number of strains of fungus for use in bio-based insulation panels, but the hungry fungus has taken them in another direction.

Biohm is now working to develop the strain to make it an even more efficient digester that could potentially help get rid of plastic waste.

It's no secret that single-use plastic waste is a vast problem: by 2015, according to Greenpeace, the world had churned out 6.3 billion tonnes of virgin plastic, of which only 9% has been recycled. The rest was burned in incinerators or dumped.

Things are improving, with more than 40% of plastic packaging now recycled in the EU, and a target of 50% by 2025.

But some types of plastic, such as PET (polyethylene terephthalate) which is widely used for drinks bottles, are hard to recycle by traditional means. So might biological methods be the answer?

"You put in plastic, the fungi eat the plastic, the fungi make more fungi and then from that you can make biomaterials... for food, or feed stocks for animals, or antibiotics."

Others have also had some success.

Scientists from the University of Edinburgh have recently used a lab-engineered version of the bacteria E. coli to transform terephthalic acid, a molecule derived from PET, into the culinary flavouring vanillin, via a series of chemical reactions.

"Our study is still at a very early stage, and we need to do more to find ways to make the process more efficient and economically viable," says Dr Joanna Sadler, of the university's School of Biological Sciences.

"But it's a really exciting starting point, and there's potential for this to be commercially practical in the future after further improvements to the process have been made."

Meanwhile, a team at the Helmholtz Centre for Environmental Research-UFZ in Leipzig is using a bacterium originally found in a local rubbish dump to break down polyurethane.

Called Pseudomonas sp. TDA1, the bacterium consumes around half the plastic to increase its own biomass, with the rest released as carbon dioxide.

Like other plastic-eating organisms, Pseudomonas breaks down the polyurethane using enzymes; and the team has now carried out a genomic analysis of the bacterium with the aim of identifying the particular genes that code for these enzymes.

But some question whether such techniques will ever be commercially viable.

"Enzyme or microbial conversion of PET to its constituent building blocks is interesting science and needs to be explored. However, the technology will have to compete with proven, commercial conversion technologies using mundane, less exciting water-catalyst systems," says Prof Ramani Narayan of Michigan State University.

Furthest down the road to commercialisation is probably Carbios, a French company using an engineered version of an enzyme originally found in a compost heap to break down PET.

After teaming up with some big names in consumer products, including L'Oreal and Nestle, the company recently announced that it has produced the world's first food-grade PET plastic bottles produced entirely from enzymatically recycled plastic.

And unlike most recycling methods, the enzymes can deal with coloured PET.

"With traditional methods such as mechanical recycling, to make a end-product suitable for transparent bottles, you need transparent bottles as an input," says deputy chief executive Martin Stephan.

"With our technology, any kind of PET waste is recycled into any kind of PET product."

However, the bottles produced by this process are almost twice as expensive as those that use petrochemicals.

Nevertheless, Mr Stephan says the technology has the potential to match the low costs of traditionally made bottles.

Dr Wolfgang Zimmermann of Leipzig University's Institute of Analytical Chemistry, believes that Carbios's technique shows promise.

"Enzymes may be very useful because they are very specific, and also they don't care about contamination, if the packaging is still dirty. And they don't use a lot of energy.

"The other thing is that it can be scaled up and down conveniently. Enzymes would have the advantage that they can consist of small units that would have a low carbon footprint, and they could be outside metropolitan areas in developing countries or remote places."

However, he believes they are no panacea.

"PET bottles can be recycled using this enzyme back to new bottles, but unfortunately PET bottles are very crystalline and very resistant to enzyme degradation, so the company had to introduce an extra pre-treatment where they actually put in a lot of extra energy to melt the material and extrude it to reduce the crystallisation," he says.

"After that, you can degrade it with the enzyme - but economically, and also in terms of carbon footprint, this doesn't make a lot of sense in my opinion."

And while things may improve, enzymatic recycling currently has a very limited range, as Mr Stephan concedes.

"We have developed technologies for the end-of-life of two polyesters only, representing around 75 million tonnes of annual production, compared to a global plastics production of around 350 million tonnes," he says.

"A lot of work is ahead of us."-BBC

Empty shop numbers rise as Covid continues to bite

The number of empty shops in Britain has continued to rise as retailers struggle with the effects of the Covid pandemic, the British Retail Consortium has said.

Shopping centres have been hardest hit, with nearly one in five units empty, the industry group said.

The north east of England had the highest vacancy rate, followed by Wales and the north west.

The Covid pandemic has accelerated a shift towards online shopping.

Many shops were shuttered during lockdowns, although retail sales in June were near pre-lockdown levels, as the reopening of shops released pent-up demand.

Retail sales near pre-lockdown levels in June

However, fashion retailers have been hit hard by the pandemic, with the closure of well-known High Street brands such as Debenhams and Topshop contributing to vacancies.

But it is shopping centres which had the highest vacancy rate from April to June.

"It comes as no surprise that the number of shuttered stores in the UK continues to rise, after retailers have been in and out of lockdown for over a year," said Helen Dickinson, chief executive of the British Retail Consortium (BRC).

Almost one in five shopping centre units now lie empty, and more than one in eight units have been empty for more than a year.

The vacancy rate in retail parks is also rising quickly as they lose stores.

'Sword of Damocles'

The number of empty shops could continue to rise following the ending of the business rates holiday, Ms Dickinson said.

Since the start of the pandemic, the government announced a range of measures to help companies including business rates relief which ran until the end of June. Firms are currently paying a reduced rate.

But Tony Brown, chief executive of Beales, the department store, told the BBC's Today programme that the resumption of full business rates payments "is a sword of Damocles hanging over everybody".

He said that at Beales stores, which include Poole, Peterborough and the soon-to-open branch in Southport, "we pay 10 times, sometimes 30 times more in [business] rates than we do in rent".

Beales, one of the UK's oldest department stores, fell into administration in January 2020 before the Covid pandemic was declared. It subsequently shut down all its shops but a business called New Start 2020 bought the name and Beales reopened a branch in Poole last year.

Mr Brown said: "The pandemic has allowed us to rethink the model as to how department stores should work and how we can rebuild the High Streets.

"I believe that customers still want to shop, still want to physically shop in stores, especially for fashions, and as we get further and further away from the pandemic, being able to try on clothes comfortably is what the customers are asking us to do."

The BRC's Ms Dickinson said that there is a sharp divide between the south of England, including London, with lower vacancy rates compared to the north of the country, where disposable income is lower.

While the increase in the vacancy rate is slowing, there "will never be enough demand to meet the supply" said Lucy Stainton, director of Local Data Company, which did the vacancy research for the BRC.

"The property market will be forced to think of more creative ways to utilise this space, to avoid exacerbating the already high rates of long-term voids across our retail destinations which are not only unsightly and costly for landlords, but also have a negative impact on surrounding stores," she said.

The BRC envisages future town centres to include leisure, retail centres, services and homes.-BBC

Dairy giant Arla says driver crisis hitting milk supply

Dairy giant Arla, which supplies milk to all major UK supermarkets, has said a lorry driver shortage has forced it to cut back on its deliveries.

UK managing director Ash Amirahmadi said the firm normally supplied 2,400 stores a day, but had been experiencing driver shortages since early April.

"Last Saturday, there were 600 stores that we couldn't deliver milk to," he told the BBC.

He warned of a summer of disruption and urged the government to act.

"It's very worrying for customers when they go into shops and find that the shelves are empty," he said.

"Our assessment is that we're in a driver shortage crisis and therefore we're asking for the industry and government to work together to recognise we're in a crisis and actually address the issue."

Mr Amirahmadi said the government could help the industry by accelerating the programme of driving tests for new HGV drivers, as well as by issuing temporary visas for the road haulage industry, so that more European drivers could be allowed into the country.

The Road Haulage Association believes there is currently a shortfall of about 100,000 lorry drivers.

Earlier this month, Transport Secretary Grant Shapps announced a temporary extension of lorry drivers' working hours, from nine to 10 hours a day.

However, the RHA said the relaxation was a "sticking plaster".

Weekend bonus

Mr Amirahmadi said: "Since the beginning of April, we have experienced driver shortages. That has increased to such a level now that we are not able to deliver milk to every store that we'd like to.

"Unfortunately at the moment, there's about 10% of the stores every day that we can't deliver to. At the weekend, it's worse."

Mr Amirahmadi said the problem was a structural issue that needed a structural solution.

He said it would be "tough and challenging" to get through the summer.

There are indications that the shortage of drivers is pushing up pay rates, with Tesco offering lorry drivers a £1,000 joining bonus.

Arla, through third-party hauliers, had "significantly increased" pay, including paying new drivers a £2,000 bonus if they were prepared to work weekends, Mr Amirahmadi said.

But with summer holidays approaching, the problem was likely to get worse, he said.

"By how much, we cannot fully predict, but I think that's why we really need to take bold action in time for the summer," he said.

"We're trying to avoid a summer of disruption."

The driver shortage has combined with the so-called "pingdemic" to exacerbate the problem, as large numbers of workers in key sectors have been forced to stay at home after being alerted by the NHS Covid app.

But Arla was suffering more from the lack of drivers than from Covid alerts, Mr Amirahmadi said.

"Self-isolation doesn't seem to be impacting us as much, because we're a very mechanised, automated business," he added.

"The food is there in the factories, it's just about getting it to the shops. So that's our key problem."

A government spokesperson said: "We're working with industry and have already taken action on HGV driver shortages, including ramping up vocational test capacity, and funding apprenticeships.

"We have also announced a temporary relaxation of drivers' hours rules. This will allow HGV drivers to make slightly longer journeys, but must only be used where necessary and must not compromise driver safety, with further measures to be announced shortly.

"Most of the solutions, however, are likely to be driven by industry, with progress already being made in testing and hiring, and a big push towards improving pay, working conditions and diversity."

In July the government announced a package of measures designed to help the industry.-BBC

Robinhood has a muted stock market debut

Robinhood, the online brokerage on a mission to "democratise finance for all", has had a humbling debut on the Nasdaq stock exchange.

More than 49m shares worth $1.8bn (£1.2bn) were sold in the first half an hour of trading, but shares in the platform then fell by up to 12% before regaining some ground.

Shares were first offered to the public markets at the bottom of its target range for buyers.

The opening price was $38 per share.

After the initial dip, it then climbed up to its current price of $36 - down around 5%.

Though it opened pricing shares near the low end of its range, the California-based company is worth $32bn - making it one of America's most valuable companies to have gone public this year.

However it didn't reach the $35m valuation it had hoped for.

Its stock market debut comes just months after it was caught in a confrontation between a new generation of retail investors and Wall Street hedge funds.

Unusually, the company put aside 20% to 35% of its shares for its customers in the public market debut on the New York Stock Exchange.

Its easy-to-use interface made it a hit among young investors trading from home during coronavirus-induced restrictions and its popularity has soared over the past 18 months

Users flocked to the platform during the pandemic, with the number of accounts doubling to 31 million since January.

"We didn't build Robin Hood for the rich or those with decades of experience. We built it for everyone. We're humbled to be serving over 22 million people. And yet there's so much more to do," chief executive Vlad Tenev said.

"The business has been a juggernaut. They've got a great platform they can build off of," said David Weild, former vice chairman of the Nasdaq and current chief executive of investment bank Weild & Co.

Kathleen Smith, co-founder of bank Renaissance Capital said their success is because they've made it "exciting to trade on their app, and the other brokers are going to have to catch up".

"They already showed when they started that out, offering commission free trading, it didn't take too long for the rest of the competitors to follow suit - so they have been a leader in disrupting the space," she explained.

The business was launched in 2013 by friends Vlad Tenev and Baiju Bhatt at Stanford university, and has tried to appeal to young investors by not requiring account minimums or charging commissions. Its median customer age is 31.

Earlier this year, it was involved in the GameStop trading buzz, being one of the main platforms through which retail investors could trade.

Robinhood's revenue in the March quarter jumped fourfold, thanks to the trading mania in the so-called meme stocks. But it also came at a cost, putting it at the centre of several regulatory probes.

Mr Tenev said the situation the firm faced in January - when financial strains led it to limit certain stock purchases - was "unacceptable to us". Lawmakers later said the move, which sparked outrage, had raised questions about fairness in financial markets.

The trading frenzy saw the price of GameStop shares rise from less than $20 at the beginning of January to more than $350 in a matter of weeks.

Last month the business was fined $70m by a regulatory body that said it harmed thousands of consumers through "false and misleading" communications.

In 2020, the company also paid $65 million to America's Securities and Exchange Commission for misleading customers.-BBC

Asian shares extend losses, set for worst month since March 2020

(Reuters) - Asian shares fell on Friday, extending their biggest monthly drop since the height of global pandemic lockdowns last March on lingering investor concern over regulatory crackdowns in China on the education, property and tech sectors.

Losses deepened even after reassurances from Chinese regulators and official media that helped to soothe investors' nerves a day earlier, and following indications from the U.S. Federal Reserve that its bond-buying programme will remain unchanged for now. read more

A continuing outbreak of Delta variant COVID-19 cases in China's coastal province of Jiangsu also weighed on the mood on Friday. read more

Futures pointed to a lower open for European share markets. Euro Stoxx 50 futures fell 0.8%, German DAX futures fell 0.79% and FTSE futures slipped 0.68%.

"It's clear investors are very rattled by the regulatory crackdown," said Michael Frazis, portfolio manager at Frazis Capital Partners in Sydney, while adding that the market continues to face other near-term pressure.

"You will have talk about tapering, and you do have a lot of coronavirus beneficiaries which are largely in the tech sector. (Earnings) growth will be slow, and they will be reporting numbers off of very high bases for this time last year... We expect tech indices to be challenged in the near term, but we're very optimistic over the medium and long term."

On Friday, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 1.33%, taking its losses for the month to more than 7%. Japan's Nikkei (.N225) dipped 1.80%, its 11th straight month of falls on the last trading day in the month.

Chinese blue-chips (.CSI300) fell 1.06%, and Hong Kong's Hang Seng (.HSI) fell 2.11%, with tech stocks once again dragging. The Hang Seng Tech index (.HSTECH) shed more than 4%, deepening its fall for the month to more than 18%. Seoul's Kospi (.KS11) fell 1.16%.

The falls in Asia came despite robust U.S. earnings and forecasts, as well as strong second-quarter economic growth figures, that helped to lift Wall Street to record intraday highs on Thursday.

The U.S. economy grew past pre-pandemic levels in the second quarter, helped by rising vaccinations and government aid, though the expansion fell short of expectations and rising COVID-19 infections are clouding the outlook for the current quarter. read more

Lower-than-expected revenue reported by Amazon.com Inc (AMZN.O) on Thursday, and the company's forecast of slower sales growth in the coming quarters weighed on U.S. stock futures.

Nasdaq e-mini futures slid 1.30% and S&P 500 e-minis were down 0.79%.

FLATTER CURVE

After rising Thursday on U.S. economic data, U.S. Treasury yields pulled back, particularly toward the long end of the yield curve.

Benchmark 10-year notes last yielded 1.2456%, down from 1.269% late on Thursday, and the 30-year yield stood at 1.9013%, down from 1.916% on Thursday.

The spread between the U.S. 10-year and 2-year yield narrowed to 106.6 basis points.

"We think bond yields now discount an unduly pessimistic view of the medium- to long-term outlook... The prospects for a robust recovery - and higher bond yields - are arguably much better," analysts at Capital Economics said in a client note.

But following Fed Chairman Jerome Powell's statement earlier this week that rate increases are "a ways away" and the job market still had "some ground to cover", the dollar wallowed near one-month lows on Friday and was set for its worst week since May.

The dollar index was last up 0.09% at 91.968, with the euro down 0.06% at $1.1879. The greenback was 0.1% higher against the yen at 109.57.

In commodities markets, oil prices fell back after global benchmark Brent on Thursday topped $76 a barrel on tight U.S. supplies.

Brent was down 0.53% at $75.65 per barrel and U.S. West Texas Intermediate crude traded down 0.52% at $73.24. Brent crude is still up nearly 2% for the week.

Spot gold was little changed at $1,827.31 an ounce, but was set for its best week in more than two months on the prospect of delayed Fed tapering.

The Thomson Reuters Trust Principles.

Credit Suisse creates new asset management risk role

(Reuters) - Credit Suisse (CSGN.S), recently hit by the Archegos and Greensill scandals, has created a new role of chief risk officer for asset management that will be filled by Wolfram Peters, former chief risk officer at Allianz Global Investors, executives of the Swiss bank said in an internal memo seen by Reuters.

Switzerland's second-biggest bank has been overhauling risk and compliance since the two separate scandals hit its asset management and investment banking businesses in March, capping off a tumultuous two years for the lender.

The bank in April began overhauling its asset management setup and brought in former UBS (UBSG.S) executive Ulrich Koerner to lead the newly separated division, as it scrambles to return some $10 billion of client investments linked to insolvent supply chain finance firm Greensill Capital.

It has recovered some 66% of the funds' value, the bank said on Thursday, when it reported a nearly 80% slide in second-quarter net profit on the back of residual aftershocks related to the separate default of Archegos Capital Management. read more

Peters, who left Allianz in April according to LinkedIn, will begin his new role at Credit Suisse on Sept. 1. He previously spent 16 years in various risk roles at Allianz Global Investors, the asset management arm of German insurer Allianz (ALVG.DE).

"Wolfram brings with him a proven track record of developing high-performing teams and designing and implementing a risk architecture that supported a transforming organization in the implementation of a rapidly developing business strategy," Koerner and interim group risk chief Joachim Oechslin told employees in a joint memo.

The contents of the memo were confirmed by a spokesperson for the bank.

Credit Suisse faces enforcement proceedings by the Swiss financial market supervisor over both the Greensill and Archegos matters, and launched internal investigations into the matters as well. read more

In a damning assessment of what went wrong, an independent review unveiled on Thursday repeatedly criticized the bank's risk management practices related to Archegos. read more

It has yet to unveil findings from its inquiry into Greensill.

The Thomson Reuters Trust Principles.

Renault sees 2021 profit despite chip crunch, raw material costs

(Reuters) - French carmaker Renault (RENA.PA) said on Friday it expected to deliver a full-year 2021 profit even as a global shortage in semiconductor chips and rising raw material costs crimped production.

Renault said it now expected the chip shortage to lead to a production loss of 200,000 units this year, doubling its previous forecast.

The carmaker, which has been focusing more on its most profitable models,reported a return to half-year net profit after a hefty loss a year ago, crediting rising car sales and its pricing efforts.

Renault, which also owns Dacia and Lada brands and has a partnership with Nissan, reported an operating margin of 2.8% for the first half of the year, saying it was aiming for a full-year margin "of the same order". It added it was ahead of its cost cutting targets.

Renault shares were up 1.5% at 07h47 GMT, after rising more than 4% in early trading.

These results "mark only the first step in our turnaround, which should accelerate with arrival of the new vehicles in preparation," Chief Executive Officer Luca de Meo, who started a year ago, said in a statement.

Renault almost returned to positive cash flow in the first half of the year, from a nearly 6.4 billion euro outflow in the year-ago period, and executives said they hoped to keep that momentum going.

Renault plans to repay around a fifth of a 5 billion-euro loan from the French state by year end, Chief Finance Officer Clotilde Delbos said. The loan was part of government emergency support offered at the start of the coronavirus pandemic.

Last month, Renault unveiled a more ambitious strategy for electric vehicles (EVs), betting on new, affordable versions of its iconic small cars of the past to catch up with Volkswagen (VOWG_p.DE) in the fast-growing sector. read more

After five consecutive quarters of falling car sales, Renault's revenue for the first half of 2021 rose 18.7%.

"RENAULUTION" PLAN

CEO De Meo, a former Volkswagen executive who turned the German automaker's Seat brand around, has been tasked with helping Renault turn a new page after a troubled spell.

De Meo's turnaround plan - which he calls a "Renaulution" - includes laying off thousands of workers, cutting the carmaker's model range, and improving cooperation on production with its alliance partners - Nissan (7201.T) and Mitsubishi (7211.T).

Former boss Carlos Ghosn was ousted and arrested in Japan in 2018 on charges of financial malpractice, which he denies. Ghosn left behind a sprawling model range with low margins, and Renault racked up heavy losses when global demand for cars fell.

The French carmaker said last month that by 2030 the Renault-Nissan-Mitsubishi alliance would produce one million EVs globally a year, up from the 200,000 they made in 2020.

Renault on Friday reported first-half net profit of 354 million euros ($420.52 million) after suffering a loss of nearly 7.3 billion euros a year earlier amid lengthy industry-wide production shutdowns during the coronavirus pandemic.

Nissan surprised with a first-quarter profit and raised its earnings outlook on Wednesday. read more

The Thomson Reuters Trust Principles.

Germany's economy expands less than expected in Q2

(Reuters) - The German economy returned to growth in the second quarter but bounced back less strongly than expected amid supply chain bottlenecks thatare hitting industry, data showed on Friday.

Europe's largest economy grew by 1.5% quarter on quarter, compared with a revised contraction of 2.1% in the first quarter, and by 9.2% on the year, the Federal Statistics Office said. A Reuters poll had forecast increases of 2.0% and 9.6% respectively.

Compared with the fourth quarter of 2019, the last pre-pandemic period, gross domestic product (GDP) was still down 3.4%, the Statistics Office said.

"Growth is decent, but it could have been stronger if it wasn't for shortages of materials," VP Bank Group Chief Economist Thomas Gitzel said.

Supply chain worries and rising coronavirus infections have dampened the outlook for the economy. A survey showed on Monday that German business morale fell unexpectedly in July, the first decline since January. read more

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.

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

The Thomson Reuters Trust Principles.

SoftBank Q1 performance seen buoyed by China IPOs; crackdown clouds outlook

(Reuters) - SoftBank Group Corp (9984.T) is set to report a boost to Vision Fund returns when it posts quarterly earnings due to the U.S. listing of Chinese portfolio firms, just as regulatory scrutiny of such firms clouds the outlook for the Japanese conglomerate.

The fund's listed portfolio swelled in April-June with initial public offerings (IPO) of ride-hailer Didi Global Inc (DIDI.N), "Uber for trucks" firm Full Truck Alliance Co Ltd (YMM.N) and edutech startup Zhangmen Education Inc (ZME.N).

However widespread regulatory action in China's technology and education sectors has spooked investors, wiping billions of dollars from the value of U.S.-listed Chinese firms.

Didi's shares fluctuated wildly on regulation-related media reports, whereas Tik-Tok owner Bytedance has postponed listing plans indefinitely, the Wall Street Journal reported this month.

"SoftBank has been touting Vision Fund's IPO flywheel and four of the last six listings have been Chinese but that will fade as the reality of China's crackdown sinks in," Redex Research analyst Kirk Boodry wrote in a client note.

SoftBank is investing through its second Vision Fund, which has $40 billion in committed capital from SoftBank itself, making investments at earlier-than-usual stages as well as late-stage investments, such as in South Korean travel firm Yanolja. read more

The group reported a record $37 billion net profit in the financial year ended March due in large part to outsized gains from a stake in South Korean e-tailer Coupang Inc . read more

SoftBank's share price hit a two-decade high on the gain in March amid the group's largest-ever share buyback. The buyback is complete, and the price has fallen a third from that peak.

"SBG has previously outlined its intention to address the overly high exposure of its investment portfolio to China, but we think rising global geopolitical tensions now look set to worsen investment returns sooner than expected," Citigroup analyst Mitsunobu Tsuruo wrote in a note.

SoftBank will likely book a first-quarter net loss of 175 billion yen ($1.60 billion) when it reports on Aug. 10, according to an average of two analyst estimates compiled by Refinitiv. The technology investor regards change in asset value rather than profit as the primary indicator of performance.

($1 = 109.5200 yen)

The Thomson Reuters Trust Principles.

Nigeria: Govt Assures On Timely Delivery of AKK Gas Pipeline Project

Major stakeholders in the gas sector yesterday converged in Kano to dissect the economic development capacity of the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline project, a flagship project of the federal government towards realising its objectives of its "Decade of Gas" agenda.

The forum was organised by the Gas Aggregation Company of Nigeria (GACN) and the Nigerian National Petroleum Corporation (NNPC) with the theme: "Optimizing the economic development capacity of the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline project.

Declaring the forum, the Minister of State for Petroleum Resources, Chief Timipre Sylva said the forum is geared towards sensitizing the Northern part of Nigeria of the opportunities that will come with the revamping of moribund industries in Kano and other states in the corridor of the pipeline.

The minister noted that experts have estimated that it will take two-three years to revamp these industries to function at an optimal level and this will come at the right time when the AKK project is delivered in 2023.

He said the forum was yet "another demonstration of the federal government's total commitment to the realization of the objectives underpinning the 'Decade of Gas' declaration", noting that this was similar to another engagement organised by the GACN in 2020 in Owerri, Imo state aimed at market sensitization on the harnessing of gas utilisation/commercialisation opportunities within the Southeastern region.

He noted that the commitment towards diversification influenced the government's support in the commissioning of two gas plants in Kano city in December, 2020 which achieved the "uninterrupted delivery of over 30 megawatts (MW) of power supply to the industrial hubs".

FG slashes price of gas to power to $2.18/scuf

He also used the occasion to announce the slashing of the price of gas to power from $2.50 to $2.18/Standard cubic feet (scuf) with immediate effect, noting that the reduction was an offshoot of a negotiation between the federal government and the organised labour.

Responding to the overtures of the federal government in his goodwill message, the Minister of Power, Mamman Sale, who was represented by Abba Aliyu, his Special Assistant on Policy, noted that the power sector uses more than 60% of the gas currently generated in the country to generate electricity and as such, the price reduction will assist the federal government's goal of delivering sustainable power for the country.

Also speaking, the Group Managing Director (GMD) of the NNPC, Mallam Mele Kolo Kyari said "gas means prosperity and delivering gas means an opportunity to create jobs", assuring that the project will be delivered as planned.

He said the project, as soon as it is delivered, will spring up about 232 industries across the corridor and create massive job opportunities, which he estimated will be as much as a million jobs.

He assured that the "project materials are coming on time and on schedule; as we speak now, we have over 200km of land pipes in our hand... and construction works are going on. Therefore, we are sure that this project will be delivered, it will not be a white elephant project."

In his opening address, the Chairman of the Board of GACN, Engr. Mansur Sambo stressed that the AKK pipeline is meant to revamp the vibrancy of the industrial sector and commercial activities especially in Kano, which he added is the nerve centre of commerce in Northern Nigeria.

"We chose Kano, not by accident but principally because Kano has always served as a city where buyers are merged together with sellers. We recognise Kano as a centre that will spring up the utilisation of gas especially in northern Nigeria.

Also stressing the importance of the choice of Kano, the Minister of Finance, Budget and National Planning, Zainab Ahmed said with over 350 large and medium scale industries that are operating in Kano's four industrial layouts, investing in the state along with other states in the pipeline corridor is a business no-brainer.

166 industries functional, 201 'virtually' dead in Kano -- Ganduje

Speaking more on the economic viability of Kano state, the state governor, Abdullahi Umar Ganduje noted that with peace and stability a key ingredient for investment, the state government has continued to prioritise ensuring peace and stability as a part of its strategy to engender investment, declaring that as of today, Kano is the most peaceful state in the country.

Of the industrial layouts highlighted by the Minister of Finance, Ganduje said the state government has undertaken a research to know the industries that are operative and the ones that are dead but can be brought alive with the coming of gas.

He added that with the Dala Inland Dry Port in the state being targeted for commissioning by the end of the year, the over 150 rice processing mills and the "commissioning of a new industry in Kano almost every other month", when the AKK project and the rail system finally become reality, Kano is going to be the commercial nerve centre of West Africa.

He also said with the highest number of homes in the country as well as an ever-increasing population, domestic use of gas will also be optimised.

Daily Trust reports that the governors of Kaduna, Nasarawa, Niger and Kogi states also made presentations during the forum where they outlined why investors should consider their states as the AKK project gradually becomes a reality.

Lack of jobs cause of insecurity -- Dangote

During the panel discussion on "Concrete steps to optimise the benefits of AKK", the President/CEO of Dangote Group, Alhaji Aliko Dangote noted that "without AKK, there is no way we can meet the target of Mr President (Muhammadu Buhari) of creating 100 million in 10 years."

He advised that the Nigerian Gas Marketing Company should start marketing the AKK potentials to investors, which he believes will help "to eliminate both the kidnapping, the banditry because these are all caused because of lack of jobs. These will create millions of jobs."

He also advised northern governors to look into the policies they implement in their states to bring more investments for their state.

Also speaking, Dr. Mairo Mandara, an obstetrician/gynaecologist, who spoke on the human development of the project, charged civil societies to help the government to ensure timelines are respected.

She noted that the pipeline is still a mirage until gas flows in it, stressing that political will must be strengthened especially as the year of delivery for the project coincides with election.

The Managing Director and CEO of GACN, Olalekan Ogunleye assured that the company will continue to engage with stakeholders to ensure optimal utilisation of the opportunities provided by gas. He said the framework on the ground will ensure that every serious investor that wants gas gets it.

Daily Trust reports that the forum had in attendance several dignitaries, including the Emir of Kano, Aminu Ado Bayero; Emir of Bichi, Nasiru Ado Bayero; top management of the NNPC and other departments and agencies in the oil and gas sector as well captains of industries, the Manufacturers Association of Nigeria (MAN), and private investors in the gas energy industry.-Daily Trust.

Nigeria: Govt Urged to Save 5% GDP Earning for Emergency

The federal government has been asked to develop a strategic financial fund by setting aside five per cent of its GDP annually to fund emergency cases likely to disrupt the economy

A former Head of Department of Political Science, Dillard University, New Orleans, USA, Professor Nchor B. Okorn, made the recommendation while presenting a keynote address at the Sam Momah Annual Lecture series on Thursday in Abuja.

The lecture tagged 'The Emerging Economies and The Nigerian Conundrum', was held in honour of a former Minister of Science and Technology and author of 13 books, Maj Gen Samuel Ifeanyichukwu Momah, on the Nigerian economy and others.

Prof Okorn said fiscal policy on infrastructure, roads, schools, hospitals etc would create jobs and "people will earn income and in turn spend, thus stimulate standard of living and promote smooth monetary policy through increased injection of funds in circulation."

Also speaking, a former Minister of Education Dr. Obiageli Ezekwesili, said growth and development happen by deliberate intentions and for nations to grow there must be sound policies, strong institutions that enable predictability in the assessment of incentives and sanctions and the right set of priorities in investments of goods and services.

She urged Nigerian citizens to interrogate their aspirations, saying, "Who is the one carrying our aspiration; it is determined and defined by the citizens of a country the legitimacy of leaders to lead them towards their aspiration."-Daily Trust.

MSMEs in Ethiopia to Access Finance through a New Agreement between Bank of Abyssinia and Four Private Micro Finance Institutions

Addis Ababa — Today, the Bank of Abyssinia signed a loan agreement with four private commercial microfinance institutions (MFIs) – Dynamic, Harbu, Metemamen, and Nisir that will create Moveable Loan Collateral opportunities, and unlock access to finance for micro, small, and medium enterprises (MSMEs) in Ethiopia.

The agreement, worth ETB 600 million, is facilitated through the BRIDGES Programme, which is part of the Mastercard Foundation ’s Young Africa Works strategy in Ethiopia, and is being implemented in partnership with First Consult.

Lack of access to finance is often cited as one of the key constraints hindering the growth of MSMEs in Ethiopia. This is mainly because of the shortage of eligible collateral opportunities offered by financial institutions to MSMEs. The difficulty that MSMEs experience in accessing finance is largely due to their lack of fixed assets, such as land or buildings which institutional lenders demand as collateral.

This milestone agreement is part of a larger effort to implement the National Bank of Ethiopia’s (NBE) directive to enforce the operationalization of a moveable collateral registry. The NBE directive seeks to resolve the challenge where banks have greater financial resources but do not adequately lend to MSMEs, and, conversely, MFIs are willing to lend to MSMEs but lack the resources.

The directive has stipulated two options for banks to fulfill their requirements; i) disburse funds to individuals in the agricultural sector, including cooperative unions and MSMES; and ii) partner with MFIs to channel this fund to the identified target groups by setting up a wholesale lending facility.

The Bank of Abyssinia agreement is fulfilling the second option by establishing and operationalizing a wholesale funding platform that will unlock access to credit from MFIs who are willing to service MSMEs through less stringent collateral requirements yet are constrained by a lack of liquidity.

The BRIDGES Programme has consistently worked to identify opportunities that will unlock finance in MSME lending. As such, BRIDGES has undertaken this as a potential intervention area that will create lasting benefits for both banks and MFIs, as well as facilitate additional financing for MSMEs.

"Dynamic MFI is grateful for the technical support and facilitation of the funding by the BRIDGES Programme, which is indeed a milestone in unlocking credit for young people," said Bewketu Alamirew, CEO, DYNAMIC.

''Thank you to the BRIDGES Programme for the initiative and to the Bank of Abyssinia for the positive response. The time has now come for MFIs to eliminate the prevailing loanable fund challenges that they have experienced over the years,'' said Dawit Wakgari, CEO, Nisir.

The agreement will serve to establish longer-term business relationships between the commercial banks and capable MFIs to not only create funding sources, but also build potential collaboration in areas such as establishing linkages for SMEs graduating from MFIs. An additional benefit is that liquidity constraints hindering MFIs ’ ability to increase access to finance for MSMEs will be done on a commercially sustainable basis.

In a statement, the leadership of the Bank of Abyssinia, expressed their gratitude to the BRIDGES programme and the Mastercard Foundation for facilitating the linkages between the Bank and the MFIs. They consider the agreement as a significant breakthrough to unlocking finances for young people and alleviating the hard physical collateral requirements.

Uganda Petitions Kenya, Tanzania Over Milk Exports

Uganda has asked Kenya and Tanzania to remove prohibitive levies placed on its dairy products saying it could jeopardise trade relations and the East African Community spirit.

In a July 19 letter , the Minister of Agriculture, Animal Industries and Fisheries, Mr Frank Tumwebaze, has asked Kenya and Tanzania, after a flawed soft diplomacy strategy for the two countries, to allow Ugandan milk into their markets.

Since 2020, Uganda has struggled to have its milk products sold in the two East African member states, something the minister said is a barrier to the EAC spirit and regional trade relations.

Mr Tumwebaze also raised before the leadership of Kenya and Tanzania concerns of "ongoing taxes and levies charged on Ugandan dairy products" despite negotiation efforts.

"The TShs2,000 Tanzania (about Shs3,000) levy is prohibitive and hence has hampered Ugandan milk exports to Tanzania solemnly," the letter addressed to the Minister of Agriculture, Livestock and Fisheries of Tanzania, Mr Adolf Mkenda reads in part.

Mr Tumwebaze also complained about the 1.75 per cent of FOB (Free on Board), Tsh30, 000 (about 46,000 Uganda Shillings) application fees to the Tanzania Dairy Board and 18 per cent Value Added Tax for all dairy products.

"This despite the fact that many discussions were held between our countries on the subject and the promised actions of removal of the same were not implemented, particularly the TShs2,000 levy imposed by your ministry," Mr Tumwebaze wrote.

Uganda maintains that if there are issues that need to be addressed, they can be handled through bilateral arrangements or the regional trade agreements within the East African Community instead of using arbitrary means such as high taxes.

Meanwhile, Ugandan milk products have also been restricted in the Kenyan market since January 2020.

"This is despite the fact that Ugandan government formally protested these actions by way of a protest note dated January 15,2021 and both countries are signed up to the East African Community framework," Mr Tumwebaze wrote to Mr Peter Gatirau Munya, Kenya's Cabinet Secretary, Ministry of Agriculture, Livestock, Fisheries and Co-operatives.

In April, a joint committee was set up to solve the impasse between Kenya and Uganda for milk product trade to continue smoothly but the matter was never amicably resolved.

Since 2019 when Kenya began restricting Uganda dairy products, there have been frustrations among dairy product exporters on the slow rate of the negotiations.

Position

Uganda maintains that if there are issues that need to be addressed, they can be handled through bilateral arrangements or the regional trade agreements within the East African Community instead of using arbitrary means suchas high taxes.- Monitor.

Invest Wisely!

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INVESTORS DIARY 2021

Company

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Date & Time

Companies under Cautionary

ART

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Dairibord

Starafrica

Fidelity

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Medtech

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Nampak Zimbabwe

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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.

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