Major International Business Headlines Brief::: 01 June 2021

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Major International Business Headlines Brief::: 01 June 2021

 


 

 


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

 


 

 


ü  Covid-19: Red list arrivals terminal opens at Heathrow Airport

ü  Kraft Heinz to invest in the UK to make tomato ketchup

ü  UK set for stronger post-Covid recovery, says OECD

ü  Domino’s seeks 5,000 workers as staff return to old roles

ü  Asian stocks hit month high, gold gains ahead of U.S. jobs data

ü  Top Glove's $1 bln Hong Kong listing delayed amid U.S. ban imbroglio -
sources

ü  KKR, CD&R nearing deal to buy out Cloudera - reports

ü  OPEC, Russia seen gaining more power with Shell Dutch ruling

ü  Daimler to pay Nokia patent fees, ending legal fight

ü  Tesla’s vehicle price increases due to supply chain pressure, Musk says

ü  Asia’s factories sustain expansion but supply squeeze dims outlook

ü  Monde Nissin debuts 0.14% lower after $1 bln Philippine IPO

ü  Australia c.bank holds rates as economy bolts ahead, A$ slips

ü  UK house prices jump by 10.9%, could speed up further- Nationwide

ü  German 'insurtech' Wefox raises $650 mln at valuation of $3 bln

 

 

 

 

 

 

 

 


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Covid-19: Red list arrivals terminal opens at Heathrow Airport

A dedicated terminal for passengers arriving in the UK from countries with a
high risk of Covid has opened at Heathrow Airport.

 

Travellers arriving on direct flights from red list nations will now transit
through Terminal Three.

 

Heathrow said its top priority was protecting the public and helping reduce
the risk of new variants.

 

There are 43 countries on the red list but direct flights are permitted from
only a few of them, including India.

 

Only British and Irish nationals or UK residents are allowed to travel from
countries on the list.

 

But anyone who has been in a red list country in the previous 10 days,
whether they took a direct flight or came via another country, is required
to pay for quarantine in a hotel for 10 nights after their arrival.

 

media captionJessica Echeverry, who's flown back from Colombia, says her
quarantine hotel is like a "luxury prison"

However, there has been concern at reports that travellers from red list
areas were mixing with other passengers in immigration halls, where they
could be waiting for several hours on occasion.

 

It comes as a scientist advising the UK government warned of signs the
country is in the early stages of a third wave of coronavirus infections.

 

A Heathrow Airport spokeswoman said: "Red list routes will likely be a
feature of UK travel for the foreseeable future as countries vaccinate their
populations at different rates.

 

"We're adapting Heathrow to this longer-term reality by initially opening a
dedicated arrivals facility."

 

She added that while opening the facility would be "logistically very
challenging", Heathrow hoped that doing so would enable Border Force to
carry out its duties more efficiently, as passenger volumes increase in line
with countries on the government's green list.

 

But for now, the current red list system would continue, including mandatory
negative Covid tests for all international arrivals, mandatory use of face
coverings, social distancing, segregation and enhanced cleaning regimes and
ventilation in immigration halls.

 

Heathrow added that its dedicated arrivals site would switched to Terminal 4
"as soon as operationally possible".

 

A government spokeswoman emphasised the UK's top priority was protecting the
health of the public, using an enhanced borders regime to reduce the risk of
new variants being transmitted.

 

"As we reopen international travel safely, we will maintain 100% health
checks at the border and the new dedicated terminal at Heathrow for arrivals
from red list countries will enable passengers to be processed as safely and
as efficiently as possible, before being transferred to a managed quarantine
facility," she said.

 

"We continue to do all we can to smooth the process, including the roll-out
of our e-gate upgrade programme during the summer and deploying additional
Border Force officers."

 

It's been three and a half months since the government first introduced
quarantine hotels.

 

But before red list passengers make their way to the hotels for their 10
days of isolation, they were waiting in the same arrivals hall as passengers
from other lower risk countries, sometimes for hours at a time. While there
were separate queues, some people felt unsafe.

 

Although the idea of a separate red list-only terminal has been floated
before, the issue has always been about who would pay for it.

 

After over a year of incredibly low passenger numbers, opening an extra
terminal was a big cost that Heathrow weren't eager to take on.

 

Some felt that as the red list is a government policy, it should be the
government that foot the bill.

 

Although neither side has confirmed who is covering the cost, it's
understood that the government is now picking up a substantial part of it.

 

International travel is likely to remain very different for a while, as
Heathrow anticipates that a red list terminal will be needed for some time.

 

The Home Office told the BBC that Border Force has mobilised additional
staff to help minimise queuing times for passengers who are compliant with
the UK's border health measures, and that it is making sure that it has the
right level of resources to maintain border security as international travel
begins to open.

 

However, the Public and Commercial Services Union (PCS) says that its Border
Force members are "very concerned" about the health and safety issues
arising from the decision to open up Terminal Three as a dedicated red list
terminal.

 

A PCS spokesman said: "The decision was taken at extremely short notice
meaning key social distancing procedures are not in place and operational
work is likely to be undertaken without the necessary protection for border
staff or passengers.

 

"This is another poorly planned initiative that will be understaffed and
rely on volunteers to do overtime, to avoid mounting queues."

 

Dozens of countries are on the red list, including India, Pakistan, Turkey,
Brazil and South Africa.--BBC

 

 

 

Kraft Heinz to invest in the UK to make tomato ketchup

Kraft Heinz says it will invest $199m (£140m) in a UK food manufacturing
facility over the next four years.

 

The plans for the plant in north west England would see British favourites -
ketchup, mayonnaise and salad cream - made in the country once again.

 

It would be the firm's biggest expansion of a manufacturing site outside the
US in more than 20 years.

 

The company said it is also one of the largest investments in UK
manufacturing since Brexit.

 

The plan, which is subject to approval in the US, will also fund equipment
and technology and create up to 50 new full-time jobs, the company said.

 

The Kitt Green plant on the outskirts of Wigan is Europe's largest food
manufacturing site, making 1.3 billion cans of food a year.

 

Under the plan, it will start making sauces, as well as continuing to make
soups, pasta and baked beans.

 

Heinz sauces were last made in the UK in 1999.

 

"The Kraft Heinz investment is a vote of confidence in the UK economy from a
major US firm and a boost that will mean jobs and growth for the local
economy," UK Minister for Investment Gerry Grimstone said in a statement.

 

In April, the US faced shortages of tomato ketchup sachets after the
coronavirus pandemic led to a surge in demand for small packets of the
popular condiment.

 

Heinz, which is the most widely sold brand of ketchup globally, said that
the rise in demand had been "driven by... accelerated delivery and take-out
trends".

 

The packs often accompany delivery orders and have effectively replaced the
bottles kept on restaurant tables.

 

The company said it had stepped up production and added multiple new
production lines in its factories. It also says it has developed a "no-touch
dispenser" for dine-in services. --BBC

 

 

 

UK set for stronger post-Covid recovery, says OECD

The UK economy's recovery from the pandemic is set to be stronger than
previously thought, a leading international agency has suggested.

 

The Organisation for Economic Co-operation and Development says the UK is
likely to grow 7.2% in 2021, up from its March projection of 5.1%.

 

The OECD raised its forecast for global growth to 5.8%, compared with the
4.2% it predicted in December.

 

However, it warned that growth would not be shared evenly.

 

The UK's growth is set to be the fastest among the large rich countries, the
OECD says.

 

UK Chancellor Rishi Sunak attributed the strength of the forecast to the
success of the UK's vaccine rollout and the government's Plan for Jobs.

 

However, he cautioned that with debt at nearly 100% of GDP, there was a need
to "ensure public finances remain on a sure footing".

 

Covid map: Where are cases the highest?

The OECD said prospects for the world economy had brightened, with activity
returning to pre-pandemic levels.

 

However, they remained short of what had previously been expected by the end
of 2022.

 

The OECD praised stimulus measures and swift vaccine rollouts in richer
countries for boosting growth, but said the slow jab distribution in many
developing countries threatened to blight their economic progress.

 

It said the recovery would remain uneven and vulnerable to fresh setbacks as
long as a large proportion of the world's population were not vaccinated.

 

Global growth will be led by a strong upturn in the US, where GDP is
forecast to reach 6.9% this year, before easing to 3.6% in 2022, the OECD
added.

 

Output in China has also caught up, but emerging-market economies, including
India, may continue to have large shortfalls in GDP.

 

The strong forecast this year for the UK reflects the key role that
vaccination plays in supporting economic recovery. It is the fastest growth
among the large rich countries - and within the wider G20, it's behind only
India and China. But that also reflects the UK rebounding from a downturn
that was one of the deepest.

 

The OECD report gives a flavour of how countries are performing over the
course of the health crisis by setting out how long it expects them to take
to get back to pre-pandemic levels of economic activity (GDP) per capita.
For the UK, it's the middle of next year, along with Italy and Canada.

 

That's a few months ahead of France and Spain but behind the US, Japan and
Germany. It's also behind several emerging economies, including China, which
was the first to regain the lost ground.

 

OECD Secretary-General Angel Gurría said there was an urgent need to "step
up the production and equitable distribution of vaccines".

 

"Effective vaccination programmes in many countries has meant today's
economic outlook is more promising than at any time since the start of this
devastating pandemic," he said.

 

"But for millions around the world, getting a jab still remains a distant
prospect. We urgently need to step up the production and equitable
distribution of vaccines."

 

OECD chief economist Laurence Boone urged stronger international
co-operation between nations to help provide poorer countries with resources
to vaccinate their populations.

 

Income support for people and businesses should continue, but as
restrictions ease, these should be "better targeted" where they are needed
most, including through retraining and job placement.

 

The OECD said support also needed to focus on "viable businesses to
encourage a move away from debt into equity, and to create jobs and invest
in digitalisation".

 

Foreign trade

Public debt has risen in most economies as a result of the pandemic, but
current low interest rates have made servicing the debt manageable.

 

In the UK, while GDP is predicted to return to pre-pandemic levels next
year, the OECD warns that increased border costs following Brexit will hit
foreign trade.

 

Unemployment is also expected to peak at the end of 2021, with a predicted
rise to 6.1% when the furlough scheme ends.

 

It will reach an average of 5.4% in 2021, above 2020 levels of 4.5% and 2019
levels of 3.8%.

 

The OECD recommends the UK government should maintain support measures until
economic recovery is under way, focusing on businesses and sectors with the
best growth prospects.

 

The report also says a closer trade relationship with the EU would improve
the economic outlook in the medium term.-BBC

 

 

 

Domino’s seeks 5,000 workers as staff return to old roles

Domino's Pizza is hiring 5,000 cooks and delivery drivers, as staff who
joined during the pandemic head back to former roles.

 

The fast-food chain said it had recruited thousands of workers in the last
year to keep up with demand.

 

Recruits included event managers, taxi drivers and hairdressers, unable to
carry out their work due to lockdowns.

 

However, as Covid restrictions have eased, many employees are returning to
their old jobs.

 

It comes days after reports that hospitality venues are now struggling to
fill thousands of vacancies.

 

Domino's operations director Nicola Frampton said the group was
"overwhelmed" by the response of applicants last year.

 

In March 2020, the chain created 6,000 additional roles due to an increased
need for delivery drivers during the first Covid lockdown.

 

"I'm proud we were able to play a part by offering people the opportunity to
continue working and earning when times were tough," she said.

 

"But as people start to reunite, customer demand is showing no signs of
slowing and so we're now looking for 5,000 new recruits."

 

The chain is taking part in the government's Kickstart scheme, offering
around 1,400 work placements for young people in stores in England, Scotland
and Wales.

 

Kickstart recruits receive on the job training and can apply for permanent
roles at the end of a six-month placement.

 

Hospitality staff shortages

Last week, UK Hospitality said there was a shortfall of about 188,000
workers, with the shortage of front-of-house staff and chefs being
"particularly acute".

 

Uncertainty over the future stability of the industry and Brexit were cited
as being the main reasons for the shortage.

 

Many staff have been laid off over last 14 months, as venues struggled to
survive through lockdowns, despite various government support schemes.

 

The industry group said many overseas workers returned home last year and
have not returned due to travel restrictions.

 

On Monday, UK Hospitality's chief executive Kate Nicholls said venues were
on a "cliff edge" if businesses were not able to fully reopen on 21 June,
amid concerns about a third wave of coronavirus infections hitting the UK.

 

"It would be devastating for many of our members and catastrophic for those
not able to open at all, [such as] nightclubs and music venues and for those
with restricted opening, so wedding venues and indoor leisure," Ms Nicholls
said.

 

"If there is any delay it's imperative to extend the business support
schemes to protect the millions in the sector that are at risk."--BBC

 

 

 

Asian stocks hit month high, gold gains ahead of U.S. jobs data

Asian equity markets hit a one-month peak on Tuesday, buoyed by the global
stock rally, while gold flirted with five-month highs ahead of European and
U.S. data this week that will likely offer clues on the health of the world
economy.

 

European stocks were set for a mixed start, with Euro Stoxx 50 futures up
0.3%, while FTSE futures gave up 0.4%.

 

The world's recovery from the COVID-19 pandemic remains patchy with exports
reviving but broader economic activity still dampened by new measures to
contain fresh outbreaks.

 

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS)
edged up 0.4%, hitting the highest in a month and taking total gains made so
far this year to nearly 7%. World equities have risen for a fourth straight
month as ample liquidity supported risk taking despite worries about higher
inflation.

 

In Asia, Taiwan's (.TWII) and South Korea's (.KS11) indexes notched gains,
making up for selling it Japanese (.N225), Australian (.AXJO) and Chinese
markets (.CSI300).

 

South Korea stocks rose as data showed the country's exports logged their
sharpest expansion in 32 years in May. That contrasted with Japanese data
that showed companies cutting spending on plant and equipment for the fourth
straight quarter. L2N2NJ009

 

China's factory activity expanded at the fastest pace this year in May as
domestic and export demand picked up, a business survey showed. read more

 

While asset markets have rallied last month, policymakers are focused on
tackling inflation at a time when the underlying structural economy has been
struggling to gain traction. Markets are also awaiting signals from the
Federal Reserve on when it will start tapering its bond-buying programme.

 

"The fixation of the markets now is on inflation and rightly so because of
so much of quantitative easing and supply chain disruptions," said Hou Wey
Fook, chief investment officer at DBS Bank.

 

"It seems to be that tapering should be on the cards. But it will be mild,
it'll be slow and will be very well communicated."

 

This week's main event is the U.S. payrolls on Friday with median forecasts
at 650,000, but the outcome is uncertain following April's unexpectedly weak
266,000 gain.

 

Though U.S. inflation data last week was above estimates, another big miss
on the jobs front would delay prospects for any wind down of stimulus,
analysts say. read more

 

The dollar languished near multi-month lows versus major peers as traders
looked for clues on Fed direction.

 

"The world economy is clearly recovering, and that is going to be bad for
the U.S. dollar because it's a counter-cyclical currency," said Commonwealth
Bank of Australia strategist Joseph Capurso. "The U.S. dollar has been
pretty heavy in the last few weeks, and I think it keeps trending lower."

 

The Australian dollar strengthened as much as 0.5% as Australia's current
account surplus hit a record high and drove upward revisions to economists'
growth forecasts.

 

But the Aussie later retreated after the central bank left its policy
unchanged and stuck with a dovish tone. read more

 

The offshore Chinese yuan was steady at 6.3739 per dollar, pulling back from
a three-year high of 6.3526 per dollar reached on Monday, after the monetary
authority tightened banks' foreign exchange requirements to stem the
currency's rise.

 

Concerns about global inflation have supported gold, with prices for the
yellow metal rising 8% this month, vaulting comfortably above $1,900 . On
Tuesday, gold prices traded near a five-month high scaled last week.

 

Oil prices rose ahead of an OPEC+ meeting and on optimism that fuel demand
will grow in the months ahead with the summer driving season starting in the
United States, the world's top oil consumer.

 

Brent crude futures for August added 1.2% to $70.1 a barrel, while U.S.
crude rose 1.9% to $67.6.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Top Glove's $1 bln Hong Kong listing delayed amid U.S. ban imbroglio -
sources

Top Glove Corporation's (TPGC.KL) plan to list in Hong Kong and raise up to
$1 billion has been delayed as the world's largest rubber glove maker seeks
to resolve a U.S. import ban on its products, sources with direct knowledge
of the matter said.

 

The Malaysian firm, which is already listed in Kuala Lumpur and Singapore,
flagged in late April it would sell 793.5 million shares in the listing,
half what the company proposed in its application to the Hong Kong Stock
Exchange in February.

 

However, the deal has stalled as the company awaits indications from U.S.
Customs and Border Protection (CBP) on whether an imports ban would be
lifted any time soon, the sources told Reuters.

 

Potential investors questioned Top Glove and its advisers on the sanctions
during preliminary briefings ahead of the listing, they said. read more

 

Top Glove had hoped to complete the listing by the end of the second quarter
in 2021, the sources said.

 

Top Glove did not respond to a request for comment. The sources could not be
named as the information was not yet made public.

 

U.S. Customs prohibited the import of Top Glove products last year, saying
it had found reasonable evidence at the company's production facilities
across Malaysia indicative of forced labour practices.

 

Customs said in March it had found evidence of multiple forced labour
indicators in Top Glove's production process, including debt bondage,
excessive overtime, abusive working and living conditions, and retention of
identity documents, and directed its officials to seize goods from the
manufacturer.

 

EARNINGS FORECASTS

 

The North American market accounts for 22% of Top Glove's total sales
volume, according to its latest accounts.

 

Analysts had largely kept their earnings forecasts for the company intact
and said diversion of trade to other markets could cushion the impact of
sales loss in the U.S. market, as the pandemic continued.

 

CBP, in an emailed response to Reuters, said the length of the review
process varies with the individual facts and circumstances of each case.

 

"CBP will not modify or revoke a Forced Labor Finding until it has
information that all indicators of forced labor identified by the agency
have been fully remediated and it is demonstrated that forced labor is no
longer being used to produce the goods targeted," it said.

 

Top Glove said in April it has resolved all indicators of forced labour in
its operations and that this had been verified by the London-based ethical
trade consultant Impactt Limited .

 

The company has argued a Hong Kong listing is not urgent as it has 2.36
billion ringgit ($573.09 million) cash on its balance sheet, the sources
said.

 

Instead, a listing is being pursued to diversify the firm's shareholder base
and take advantage of the increased liquidity in Hong Kong's markets
compared to Kuala Lumpur and Singapore, one of the sources added.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

KKR, CD&R nearing deal to buy out Cloudera - reports

Private-equity firms KKR & Co (KKR.N) and Clayton Dubilier & Rice LLC (CD&R)
are nearing a deal to take Cloudera Inc (CLDR.N) private at a valuation of
$4.7 billion, Bloomberg News reported on Monday, citing a person familiar
with the matter.

 

The private-equity giants are likely to finalise a deal on Tuesday to
acquire the software firm at $16 a share, or about a 24% premium to its
previous close, according to the report.

 

Cloudera - which has activist investor Carl Icahn as its largest shareholder
- has explored a sale since mid-2020 after receiving takeover interest, the
report said.

 

The Wall Street Journal had earlier reported about the deal talks.

 

KKR and Cloudera did not immediately respond to Reuters' requests for
comment.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

OPEC, Russia seen gaining more power with Shell Dutch ruling

Climate activists who scored big against Western majors last week had some
unlikely cheerleaders in the oil capitals of Saudi Arabia, Abu Dhabi and
Russia.

 

Defeats in the courtroom and boardroom mean Royal Dutch Shell (RDSa.L),
ExxonMobil (XOM.N) and Chevron (CVX.N) are all under pressure to cut carbon
emissions faster. That’s good news for the likes of Saudi Arabia’s national
oil company Saudi Aramco (2222.SE), Abu Dhabi National Oil Company and
Russia's Gazprom (GAZP.MM) and Rosneft (ROSN.MM).

 

It means more business for them and the Saudi-led Organization of the
Petroleum Exporting Countries (OPEC).

 

"Oil and gas demand is far from peaking and supplies will be needed, but
international oil companies will not be allowed to invest in this
environment, meaning national oil companies have to step in," said Amrita
Sen from Energy Aspects consultancy.

 

read more

 

Climate activists scored a major victory with a Dutch court ruling requiring
Royal Dutch Shell to drastically cut emissions, which in effect means
cutting oil and gas output. The company will appeal. read more

 

The same day, the top two U.S. oil companies, Exxon Mobil Corp (XOM.N) and
Chevron Corp (CVX.N), both lost battles with shareholders who accused them
of dragging their feet on climate change. read more

 

"It looks like the West will have to rely more on what it calls "hostile
regimes" for its supply," joked a high-level executive from Russia's Gazprom
oil and gas group, referring to energy companies around the world owned
completely or mostly by the state.

 

Saudi Aramco, Adnoc and Gazprom all declined to comment. Oil major Rosneft,
in which the Russian state has the biggest stake, also declined to comment.

 

A senior Saudi Aramco staffer said the court ruling would make it easier for
OPEC to ramp up production.

 

"It is great for Aramco," the staffer said.

 

Western oil majors like Shell have dramatically expanded in the last 50
years, as the West sought to cut its reliance on energy from the volatile
Middle East, and from Russia.

 

Those same Western energy majors, including BP and Total, have set out plans
to sharply reduce emissions by 2050. But they face growing pressure from
investors to do more to meet U.N.-backed targets to limit global warming.

 

Saudi Aramco, listed on the Saudi bourse but majority state owned, is not
under the same sort of pressure to cut its carbon emissions, although the
kingdom's rulers aim to sharply increase the country's use of renewables.

 

Gazprom expects demand for natural gas to grow in the coming decades and for
it to play a bigger role in energy consumption than renewable sources and
hydrogen. read more

 

Western oil majors control around 15% of global output, while OPEC and
Russia have a share of around 40 percent. That share has been relatively
stable in the last decades as rising demand was met with new producers like
smaller private U.S. shale firms, which today face similar climate-related
pressures.

 

PEAK DIVIDENDS

 

Since 1990, global oil consumption has grown to 100 million barrels per day
from 65 million bpd, with Asia providing the lion's share of growth.

 

Countries such as China and India have made no pledges to reduce oil
consumption, which on a per capita basis is still a fraction of the levels
in the West. China will rely heavily on gas to cut its huge coal
consumption.

 

The International Energy Agency, which looks after energy policies of the
West, issued a stark appeal last month to the world to essentially scrap all
new oil and gas developments. But it gave no clear formula on how to reduce
demand.

 

Despite pressure from activists, investors and banks to cut emissions,
Western oil majors are also tasked with maintaining high dividends amid
heavy debt. Dividends from oil companies represent significant contributions
to pension funds.

 

"It is vital that the global oil industry aligns its production to the Paris
goals. But that must be done in step with policy, changes to the demand
side, and the rebuilding of the world’s energy system," said Nick Stansbury
from Legal & General, which manage £1.3 trillion ($1.8 trillion) in assets
on behalf of savers, retirees and institutions.

 

"Forcing one company to do so in the courts may (if it is effective at all)
only result in higher prices and foregone profits," he said. Legal &
General, one of the world's largest fund managers, holds assets in most oil
majors.

 

Climate lawsuits have been filed in 52 countries in the past two decades,
with 90% of those in the United States and European Union, risk consultancy
Verisk Maplecroft said.

 

"In the West, energy investments will peak on fears and concerns over
regulations and court rulings. Then, we will see peak dividends," said the
Aramco executive. Aramco pays the highest annual dividend of $75 billion.

 

Over the past five years, the IEA has been predicting a large oil shortage
and an oil price spike due to a lack of investments following a 2014-2017
oil price crash.

 

An oil price rally coupled with the declining strength of oil majors would
mean a large wealth transfer from the West to countries like Russia and
Saudi Arabia, until demand starts declining not only in the West but in Asia
too.

 

"The same oil and gas will still be produced. Just with lower ESG
standards," said an executive from a Middle Eastern producer, who previously
worked for an oil major, referring to environmental, social and governance
performance measurements.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Daimler to pay Nokia patent fees, ending legal fight

Daimler (DAIGn.DE) has agreed to pay Nokia (NOKIA.HE) for using its patents,
ending a row that highlighted a battle between tech and car companies over
royalties for key technologies.

 

Nokia, which makes 1.4 billion euros ($1.7 billion) in licensing revenues
every year, and carmaker Daimler had sued each other in German courts in
recent years, with mixed results.

 

Tech firms want automakers to pay royalties for technologies used in
navigation systems, vehicle communications and self-driving cars but the
latter say their suppliers should pay instead, which could reduce the fees
for patent holders.

 

The agreement announced jointly with Daimler on Tuesday marks the latest win
for Nokia which in April struck a deal with China's Lenovo (0992.HK) under
which the world's biggest PC maker would make a net balancing payment to the
Finnish telecoms equipment maker and resolve all pending litigation. read
more

 

That followed a deal with Samsung the previous month in which the South
Korean company agreed to make royalty payments for its technologies related
to video standards.

 

Nokia and Daimler said that they had reached a patent licensing deal and
will also halt their litigation. The German carmaker has to date never paid
Nokia for using its patents.

 

"We welcome the settlement, from an economic point of view and because we
avoid lengthy ... disputes," a Daimler spokeswoman said.

 

"Under the agreement, Nokia licenses mobile telecommunications technology to
Daimler and receives payment in return," the companies said in a joint
statement.

 

"The terms of the agreement remain confidential as agreed between the
parties," they added.

 

The end of the dispute means a German court's request to the
Luxembourg-based Court of Justice, Europe's highest, last year for guidance
on the issue will be moot.

 

Audi, Bentley, BMW (BMWG.DE), Mini, Porsche, Rolls Royce, Seat, Skoda,
Volkswagen (VOWG_p.DE) and Volvo (VOLVb.ST) are already paying patent fees
to Nokia.

 

($1 = 0.8179 euros)

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Tesla’s vehicle price increases due to supply chain pressure, Musk says

In May, Tesla increased its Model 3 and Model Y prices, the automaker's
fifth incremental price increase for its vehicles in just a few months, the
Electrek website reported.

 

During an an earnings conference call in April, Musk said Tesla had
experienced “some of the most difficult supply chain challenges,” citing a
chip shortage. “We’re mostly out of that particular problem,” he added at
the time.

 

In response to the removal of lumbar support on the passenger side in
Tesla's Model Y, Musk said, "Moving lumbar was removed only in front
passenger seat of 3/Y (obv not there in rear seats). Logs showed almost no
usage. Not worth cost/mass for everyone when almost never used."

 

Earlier on Monday, the Electrek reported that new Tesla Model Y owners are
reporting that their electric SUVs are being delivered without lumbar
support on the passenger side.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Asia’s factories sustain expansion but supply squeeze dims outlook

Asia’s factory activity continued to expand in May thanks to an ongoing
recovery in global demand, surveys showed on Tuesday, though rising raw
material costs and supply chain constraints clouded the outlook.

 

A spike in COVID-19 infections in some countries could disrupt supply
chains, posing a headache for manufacturers and weighing on Asia's
export-driven recovery, analysts say.

 

Japan and South Korea saw expansions in factory activity moderate in May,
purchasing managers' indexes (PMI) showed on Tuesday, underscoring the
fragile nature of their recoveries.

 

"A spread of new variants is already having a negative impact on supply
chains. If this situation persists, it would hit Asian manufacturers that
had been scrambling to diversify supply chains out of China," said Toru
Nishihama, chief economist at Dai-ichi Life Research Institute.

 

"Asia's recovery has been driven more by external than domestic demand. If
companies have trouble exporting enough goods, that bodes ill for the
region's economies," he said.

 

China's factory activity expanded at the fastest pace this year in May on
solid demand at home and overseas, though sharp rises in input prices and
strains in supply chains crimped some firms' production, a survey showed on
Tuesday.

 

The Caixin/Markit Manufacturing PMI, which focuses on smaller firms, rose to
52.0 last month, the highest since December and inching up from April’s
51.9.

 

The survey followed China’s official PMI on Monday, which showed factory
activity in the world’s second-largest economy slowed slightly in May on
surging raw material costs.

 

The effects of surging infections on manufacturing were most prominent in
India where factory activity growth hit its lowest in 10 months, the PMI for
the country showed.

 

India’s coronavirus outbreak has infected 28 million, killed more than
300,000 and forced many states to impose restrictions on economic activity.

 

Factories in Taiwan and Vietnam were so far holding up despite rising
infections. Taiwan's PMI stood at 62.0 in May, slowing from April but
remaining well above the 50-mark that separates growth from contraction.

 

Vietnam's PMI also stayed above 50 at 53.1 in May, though slowing from 54.7
in April.

 

Japan’s au Jibun Bank PMI dropped to a seasonally adjusted 53.0 in May from
53.6 in the previous month, but was higher than its flash reading of 52.5.

 

A global chip shortage and supply chain disruptions have hit car production,
causing Japan’s output growth to miss expectations in April.

 

Japanese auto giants Toyota Motor (7203.T) and Honda Motor (7267.T) have
suspended output in Malaysia due to lockdown measures imposed to combat the
pandemic, Kyodo news agency reported on Tuesday.

 

Separate data released on Tuesday showed Japanese companies cut spending on
plant and equipment for the fourth consecutive quarter in January-March, as
the economy struggles to shake off the drag from the coronavirus pandemic.

 

South Korea’s PMI stood at 53.7 in May, slowing from April but extending
growth into an eighth straight month although the pace of input price
increases hit a 13-year high, the index showed.

 

The recovery in Asia’s fourth-largest economy remains robust with South
Korean exports logging their sharpest expansion in 32 years in May, fuelled
by stronger consumer demand globally as many economies start to reopen.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Monde Nissin debuts 0.14% lower after $1 bln Philippine IPO

Monde Nissin Corp (MONDE.PS) saw it shares weaken 0.14% at the opening bell
on its stock market debut on Tuesday, after the Philippine food maker raised
48.6 billion pesos ($1 billion) in the country's largest-ever initial public
offering (IPO).

 

The IPO, Southeast Asia's second-largest this year after the $1.8 billion
IPO of Thailand's PTT Oil and Retail Business PCL (OR.BK) in February, heads
a pipeline of Philippine share sales.

 

"The new funding will enable us to supercharge our growth," Chief Executive
Henry Soesanto said at the listing ceremony.

 

The firm will invest the IPO proceeds in research and development as well as
in production capacity to capture fast-growing opportunities in the global
alternative protein market, Soesanto said.

 

Monde Nissin's stock traded at 13.48 pesos at market open versus an IPO
price of 13.5 pesos, having risen to as much as 13.56 pesos in the first
minutes of trade. The local benchmark share price index (.PSI) was down
0.66% as of 0151 GMT.

 

Analysts previously said the leading noodle and biscuit maker had priced its
IPO conservatively in a market that so far this year has lost 7%, making it
the region's worst performer.

 

The oversubscribed IPO was supported by 11 cornerstone investors including
Singapore sovereign wealth fund GIC Pte Ltd (GIC.UL) as well as private
equity funds Eastspring Investments and Capital Group.

 

Monde Nissin has seen steady growth in its ubiquitous Lucky Me! instant
noodles and SkyFlakes biscuits. It is also betting big on the overseas meat
alternatives business through Britain's Quorn Foods, which it acquired for
about $830 million in 2015.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

 

Australia c.bank holds rates as economy bolts ahead, A$ slips

Australia's central bank left its cash rate at record lows on Tuesday and
reiterated its lower-for-longer policy stance even as data showed the
country's economic output was above its pre-pandemic level and house prices
were shooting through the roof.

 

The Reserve Bank of Australia (RBA) left its policy settings at 0.1% for a
sixth straight meeting, awaiting inflation and wage pressures, in a decision
that was widely expected by economists in a Reuters poll.

 

The local dollar stumbled to $0.7740 from a one-week high of $0.7769 reached
earlier in the day as the RBA wrongfooted some market participants who were
expecting a hawkish tilt in the central bank's statement,in line with its
New Zealand counterpart. [nL3N2NJ0VA]

 

The Reserve Bank of New Zealand (RBNZ) last week hinted at the end to a
pandemic-era, ultra-loose monetary policy, leading some to believe the RBA
would venture on that path too.

 

Governor Philip Lowe instead justified the need for near-zero rates despite
a strong economic recovery by saying "inflation and wage pressures are
subdued" and a pick-up in prices is expected to be only "gradual and
modest."

 

"An important ongoing source of uncertainty is the possibility of
significant outbreaks of the virus," Lowe added.

 

Australia's second-most populous state of Victoria plunged into a lockdown
last week after the state reported its first locally transmitted coronavirus
cases in nearly three months. read more

 

The RBA also repeated it will not raise interest rates until inflation was
"sustainably" within its 2-3% target band. Under its central scenario,
underlying inflation is seen below the mid-point of that range through
mid-2023.

 

The comments come even as recent economic data has pointed to a surge in
activity.

 

A slew of strong figures earlier in the day prompted analysts to sharply
upgrade their forecasts for Australia's first-quarter gross domestic product
(GDP) growth to a rapid 1.6% from 1% before the data was released. read more

 

Separate figures showed Australia's home value index jumped 10.6% in May
from a year ago to clock its strongest annual growth rate in almost 11
years. read more

 

First-quarter GDP data is due at 0030 GMT on Wednesday.

 

"Given the speed of the recovery we think there is a good chance that the
RBA’s objectives for a rate hike will be achieved before the '2024 at the
earliest' that it refers to and so are allowing for a first rate hike in
late 2023," said AMP chief economist Shane Oliver.

 

"But that's still a long way off. Key to watch will be unemployment heading
to 4% and wages growth heading above 3%."

 

The unemployment rate is at 5.5% currently while wage growth is crawling at
an anaemic 1.5% pace.

 

Economists said the July board meeting, where the RBA would review its
unconventional policy settings, will be crucial.

 

They expect the RBA will decide not to extend its three-year target of 0.1%
beyond the April 2024 government bond. A third round of quantitative easing
(QE) is widely expected, however, albeit in a smaller size than the A$100
billion seen in each of the first two rounds.

 

"We can see merit in some modest tapering given the strength and broadening
of the recovery," RBC economist Su-Lin Ong said, expecting a third QE of
A$75-A$100 billion.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

UK house prices jump by 10.9%, could speed up further- Nationwide

British house prices jumped by an annual 10.9%, the most innearly seven
years, and they look set to accelerate further as people seek new homes
after the pandemic, mortgage lender Nationwide said.

 

Almost seven in 10 homeowners considering a move said they would be doing it
even without the extension of a tax incentive by finance minister Rishi
Sunak, Nationwide said, citing a survey it conducted in late April.

 

Shifting housing preferences were "continuing to drive activity, with people
reassessing their needs in the wake of the pandemic," Nationwide's chief
economist Robert Gardner said.

 

Tuesday's figures are the latest to show the scale of the surge in house
prices which hit a new record high at an average of 242,832 pounds
($345,355.67), according to Nationwide.

 

Bank of England Deputy Governor Dave Ramsden said in an interview published
on Tuesday there was a "risk that demand gets ahead of supply and that will
lead to a more generalised pick-up in inflationary pressure." read more

 

"We are looking carefully at the housing market and a raft of real-term
indicators," he told the Guardian newspaper.

 

Nationwide said house prices were 1.8% higher than in April.

 

Economists polled by Reuters had expected prices to rise by 9.2% in annual
terms and by 0.8% from April.

 

Nationwide said there was scope for annual house price growth to accelerate
further in the coming months, given how weak the housing market was in early
stages of the pandemic.

 

But if unemployment rises sharply later in 2021 - when Sunak's jobs
protection programme is due to expire - there was scope for activity to
slow, perhaps sharply, it said.

 

Less timely but broader official data from the Office for National
Statistics has shown that house prices in March jumped by just over 10%, the
largest annual rise by that measure in nearly 14 years.

 

($1 = 0.7031 pounds)

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

 

German 'insurtech' Wefox raises $650 mln at valuation of $3 bln

Digital insurance startup Wefox said on Tuesday it had raised $650 million
from investors, in what it called a record-breaking round for a so-called
"insurtech" company that valued the business at $3 billion.

 

The funding means Berlin-based Wefox has grown in value threefold since
tapping investors in 2019. The move follows big raises by local startups
Trade Republic, an online stockbroker, and quick-delivery firm Gorillas.
read more

 

Wefox founder and CEO Julian Teicke told Reuters the Series C round had
drawn strong investor demand because Wefox was growing both rapidly and more
profitably than rival online insurers that are losing money.

 

He put that down to Wefox's strategy of offering digital tools that enable
insurance agents to streamline and automate labour intensive processes.
Agents sell nine out of every 10 policies in Europe, leaving
direct-to-consumer competitors like Lemonade (LMND.N) fighting for a smaller
piece of the market.

 

“Most insurtech says that insurance agents are dead. We say: They are more
alive than ever," Teicke said.

 

Wefox, which is present in Germany, Switzerland and Poland, will use the
money raised for European expansion.

 

The company aims to increase revenues to $350 million this year, from $143
million in 2020, as it builds its branded sales team and product portfolio
to complement the existing platform that hosts independent insurance
brokers.

 

CFO and co-founder Fabian Wesemann said Wefox's own-brand portfolio,
launched in 2018, already accounted for 30% of revenue last year.
Commissions made up the rest.

 

Wefox expects an even split between premium income and commissions from next
year, driven by the expansion of its branded products into life and health,
in addition to household, liability and motor.

 

On the cost side, advanced data analytics and its ability to automate more
than 80% of customer interactions mean Wefox is able to process claims more
quickly and cheaply than established players.

 

Wefox lays off some exposure from its own product portfolio to partner
Munich Re (MUVGn.DE), enabling it to run a so-called capital-light model.

 

The investment was led by Berlin venture fund Target Global, whose General
Partner Yaron Valler said he looked for Wefox to focus on growing in Europe
before launching in the United States and Asia in the year ahead.

 

"My goal is really world domination in this category," Valler told Reuters.
“I haven’t found another player in any of these geographies that figured it
out as well as Wefox.”

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

Dairibord

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


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<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
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