Major International Business Headlines Brief::: 02 June 2021

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Major International Business Headlines Brief::: 02 June 2021

 


 

 


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ü  Alaska: Biden to suspend Trump Arctic drilling leases

ü  Bloomsbury sees record profits as lockdown book sales surge

ü  JBS: World's largest meat supplier hit by cyber-attack

ü  Covid: Australia economy climbs back to pre-pandemic size

ü  Farmers' opposition to UK-Australia trade deal grows

ü  Huawei operating system coming to smartphones in Asia

ü  Zoom sales race ahead despite workplaces reopening

ü  US Supreme Court rejects J&J talc cancer case appeal

ü  Eurozone inflation up sharply as economies reopen

ü  UK manufacturing growth at 30-year high, says PMI survey

ü  AMC shares set for record open as 'meme stocks' surge

ü  The $15 billion jet dilemma facing Boeing’s CEO

ü  Korea's business leaders call on Moon to free jailed Samsung boss Lee

ü  Tesla to buy more than $1 bln of Australian battery minerals a year

 

 

 

 

 

 

 

 


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Alaska: Biden to suspend Trump Arctic drilling leases

US President Joe Biden's administration will suspend oil and gas leases in
Alaska's Arctic National Wildlife Refuge pending an environmental review.

 

The move reverses former President Donald Trump's decision to sell oil
leases in the refuge to expand fossil fuel and mineral development.

 

The giant Alaskan wilderness is home to many important species, including
polar bears, caribou and wolves.

 

Arctic tribal leaders have welcomed the move but Republicans are opposed.

 

In January, Mr Trump pushed ahead with the sale for the rights to drill for
oil on around 5% of the refuge, just days before his presidential term
ended.

 

Covering some 19 million acres (78,000 sq km) the Arctic National Wildlife
Refuge (ANWR) is often described as America's last great wilderness.

 

It is a critically important location for many species, including polar
bears.

 

During his campaign, Mr Biden pledged to protect the habitat.

 

"President Biden believes America's national treasures are cultural and
economic cornerstones of our country," White House National Climate Advisor
Gina McCarthy said in a statement.

 

"He is grateful for the prompt action by the Department of the Interior to
suspend all leasing pending a review of decisions made in the last
administration's final days that could have changed the character of this
special place forever," she added.

 

Arctic tribal leaders praised the decision.

 

"I want to thank President Biden and the Interior Department for recognising
the wrongs committed against our people by the last Administration, and for
putting us on the right path forward," Tonya Garnett, special projects
coordinator for the Native Village of Venetie Tribal Government, said in a
statement.

 

Map

"This goes to show that, no matter the odds, the voices of our Tribes
matter."

 

The Biden administration's move was criticised in a joint statement by
Republican senators Dan Sullivan and Lisa Murkowski along with
representative Don Young and Governor Mike Dunleavy.

 

"This action serves no purpose other than to obstruct Alaska's economy and
put our energy security at risk," Ms Murkowski said.

 

Mr Dunleavy added that the leases sold by the Trump administration "are
valid and cannot be taken away by the federal government".

 

The first sale of parts of the refuge received little interest from the oil
and gas industry and generated high bids of around $14 million (£10
million).--BBC

 

 

 

Bloomsbury sees record profits as lockdown book sales surge

Bloomsbury Publishing has reported record annual profits as more people
turned to reading books during the coronavirus pandemic lockdowns.

 

The Harry Potter publisher saw sales rise 14% to £185m, while profits were
up by more than one-fifth to £19.2m in the year to the end of February.

 

Chief executive Nigel Newton told the BBC that people had "craved
intellectual stimulus and comfort".

 

He added that he expected the trend to continue as the economy reopened.

 

"The popularity of reading has been a ray of sunshine in an otherwise very
dark year," he added.

 

Bloomsbury said it had outperformed the rest of the publishing sector, which
had seen sales increases overall of just 2%.

 

Its academic division had also been strong, with its digital offer
benefiting from a shift to online learning.

 

Mr Newton said that people had "rediscovered the joy of reading" and would
"cling on to that even as other ways of spending their time re-emerge".

 

He said the reopening of bookshops in England and Wales in April had been "a
complete game-changer", with High Street sales now adding to those from
online firms.

 

The firm is still best known for author JK Rowling's series of Harry Potter
books, which began appearing on the market in 1997.

 

Sales of the series were up 7% last year. Mr Newton said the longevity of
the books was "completely wonderful and remarkable".—BBC



 

JBS: World's largest meat supplier hit by cyber-attack

The world's largest meat processing company has been targeted by a
sophisticated cyber-attack.

 

Computer networks at JBS were hacked, causing some operations in Australia,
Canada and the US to temporarily shut down, affecting thousands of workers.

 

The company believes the ransomware attack originated from a criminal group
likely based in Russia, the White House said.

 

The attack could lead to shortages of meat or raise prices for consumers.

 

In a ransomware attack, hackers get into a computer network and threaten to
cause disruption or delete files unless a ransom is paid.

 

The White House says the FBI is investigating the attack.

 

"JBS notified [the White House] that the ransom demand came from a criminal
organisation likely based in Russia," White House spokeswoman Karine
Jean-Pierre said on Tuesday.

 

"The White House is engaging directly with the Russian government on this
matter and delivering the message that responsible states do not harbour
ransomware criminals," she added.

 

JBS said it had made "significant progress" in resolving the cyber-attack
and hoped the vast majority of its plants would be operational on Wednesday.

 

The company said on Monday that it suspended all affected IT systems as soon
as the attack was detected, and that its backup servers were not hacked.

 

United Food and Commercial Workers Union, which represents JBS plant
employees, has urged the company to ensure workers still receive their pay.

 

IT systems are essential in modern meat processing plants, with computers
used at multiple stages including billing and shipping.

 

According to the trade group Beef Central, "supermarkets and other large
end-users like the McDonald's burger patty supply network will be some of
the most immediately impacted customers, due to their need for consistent
supply".

 

JBS's five biggest beef plants are in the US, and the shutdowns have halted
a fifth of meat production there, according to Bloomberg.

 

 

Plants in Australia and Canada have also been affected but the company's
South American operations have not been disrupted.

 

Last month, fuel delivery in the south east of the US was crippled for
several days after a ransomware attack targeted the Colonial Pipeline.
Investigators say that attack was also linked to a group with ties to
Russia.

 

Colonial Pipeline has confirmed it paid a $4.4m (£3.1m) ransom to the
cyber-criminal gang responsible.

 

The US government has recommended in the past that companies do not pay
criminals over ransomware attacks, in case they invite further hacks in the
future.--BBC

 

 

 

Covid: Australia economy climbs back to pre-pandemic size

Australia's economy has continued its rapid rebound, to grow larger than it
was before the Covid-19 pandemic.

 

Official figures show that gross domestic product (GDP) rose by 1.8% in the
first quarter, beating expectations.

 

Growth was spurred by a soaring demand for commodities around the world and
spending by consumers and businesses.

 

Last year, Australia was tipped into recession after lockdown measures were
imposed across the country.

 

Rising household spending, investment by businesses, and higher prices of
iron ore and gas exports helped drive the expansion, according to the
Australian Bureau of Statistics.

 

The country's speedy recovery has been helped by its ability to contain
coronavirus outbreaks, which boosted consumer and business confidence.

 

Huge amounts of government spending and economic stimulus from the Reserve
Bank of Australia have also helped to super-charge the rebound.

 

Yesterday, Australia's central bank held interest rates at record lows and
signalled that it would keep borrowing costs down to help spur the country's
economic recovery.

 

The Reserve Bank of Australia kept its official cash rate at the all-time
low of 0.1% for the sixth meeting in a row, as policy-makers said they would
continue to monitor inflation and rises in wages and house prices.

 

The country's relatively slow rollout of Covid-19 vaccines remains a
potential risk for a sustained economic recovery.

 

Concerns around low vaccination rates have been heightened by a fresh
coronavirus outbreak in Melbourne, that has prompted another lockdown in
Australia's second biggest city.

 

"An important ongoing source of uncertainty is the possibility of
significant outbreaks of the virus, although this should diminish as more of
the population is vaccinated," Reserve Bank of Australia Governor Philip
Lowe said on Tuesday.

 

Last year, Australia's economy was plunged into its first recession in
nearly 30 years, as it suffered the economic fallout from the coronavirus.

 

GDP shrank 7% in the 2020 April-to-June quarter compared to the previous
three months.

 

It was the biggest contraction since records began in 1959, and came after a
fall of 0.3% in the first quarter.--BBC

 

 

 

Farmers' opposition to UK-Australia trade deal grows

Opposition among UK farmers is growing towards a trade deal close to being
concluded with Australia. They say there are no meaningful safeguards in
place to stop farmers being undercut by cheap imports. However, some,
including farmers in Australia, believe it's an opportunity for positive
change.

 

David Barton is a beef farmer in the Cotswolds. His 200 cattle are outdoors
for most of the year, grazing some of the most beautiful hillsides in
England. He moves them from field to field in a way that helps to lock up
carbon from the atmosphere - assisting the fight against climate change.
This practice also attracts a variety of different species to the area - a
concept known as biodiversity.

 

Normally amiable and carefully-spoken, he struggled to keep his tone even as
he explained how furious he was with the government's handling of
negotiations over a trade deal with Australia. He said ministers had been
"dishonest".

 

"We aren't afraid of a Free Trade Deal, but we've been given absolutely no
assurances about what standards will be upheld," he says.

 

Mr Barton argues that the government had backtracked on a pledge to allow
independent scrutiny of trade bills before they are signed.

 

"Unless the government gives us the support we need, the situation is going
to be dire. It's not going to be me, it's going to be everybody... I'm
worried UK agriculture is going to be chucked under the bus," he explained.

 

In response, the government says the Trade and Agriculture Commission - an
independent advisory board set up to inform government trade policy - will
be able to examine the text of the agreement once "all parts are concluded".

 

Farmers in Australia are allowed to use some hormone growth promoters,
pesticides, and feed additives that are banned in the UK.

 

According to the National Farmers Union (NFU), Australian farmers are able
to produce beef at a lower cost of production, and could undercut farmers in
the UK.

 

According to Australian government figures, 65% of Australian farms are
between 100 and 400 head of cattle.

 

Farms of over 5,400 head of cattle account for 30% of the country's beef
cattle. Farms with 400-5,400 head of cattle account for 52% of its beef
cattle. By contrast, the average beef cattle herd in the UK is 27 animals.

 

The chief executives of 10 leading UK green groups, including Sustain and
the WWF, recently wrote to the government describing Australia as a
"laggard" on global climate action.

 

They said a tariff-free deal would force UK farmers to compete with more
environmentally destructive farming methods.

 

Nicola Kelliher and her husband Shane own a beef farm outside Perth, in
Western Australia (WA). They sell meat that they claim is "so tender you can
cut it with the side of a fork".

 

They use no chemicals, antibiotics, or hormone growth promoters. Their 500
cattle graze outside all year round, on 2,500 hectares of land. According to
Mrs Kelliher, this is above the average size of farm for Western Australia.
They sell beef direct to the public, and also supply restaurants across the
region.

 

Mrs Kelliher is keen to export their trademarked "Wandering Clover Fed Beef"
to the UK. She feels it could be a win-win for everyone.

 

"We feel that we have a similar perspective to premium beef producers in the
UK, and we have the opportunity to support each other across the other side
of the globe," she says.

 

She believes it's not about flooding the UK market with lower welfare meat,
but allowing people to choose.

 

"By allowing choice for the consumer, we can encourage awareness about what
food they eat and where it is from, and how it is grown."

 

Labelling is key

Mrs Kelliher believes it's about transparency. In order to make it work,
there needs to be proper labelling.

 

"I don't think a trade deal with Australia is something for UK farmers to be
scared of, but I do feel they should make their views heard," she says. "If
products are labelled for the consumer, and there is a focus on education

in the long run it will help support us all."

 

'Exciting opportunity'

Patrick Holden, chief executive of the UK's Sustainable Food Trust, said the
trade negotiations were an "exciting opportunity for the Prime Minister".

 

Ahead of hosting the crucial COP26 climate summit in November, which will
aim to raise ambition on tackling global warming, the UK could lead the
world by formulating a global agricultural trade framework that helped
nations meet their climate change commitments, he said.

 

"We are not self-sufficient in food," Mr Holden says. "We need new trade
deals, whether long distance with Australia, hopefully with carbon-friendly
shipping systems, or whether closer to hand. That food needs to come from
farms which are part of the solution rather than the problem."

 

The Australian National Farmers' Federation is calling on the UK and
Australian governments to establish a joint research and development
facility on climate change and agriculture, alongside the free trade
agreement.

 

The red meat and livestock industry in Australia has set itself the target
of being carbon neutral by 2030, according to Meat and Livestock Australia
(MLA).

 

The MLA - the research and development body for red meat in Australia - also
says that greenhouse gas emissions from the industry have fallen by almost
60% since 2005.--BBC

 

 

 

Huawei operating system coming to smartphones in Asia

An update of HarmonyOS, the operating system developed by Huawei, means it
will now be installed in a wider range of products, including its
smartphones.

 

It is due to roll out across Asia following a launch event on 2 June.

 

There is no date for a global launch yet.

 

A trade ban imposed by the US last year effectively prevented Huawei devices
from working fully with Google's Android platform because it blocked access
to essential apps like Gmail.

 

However, Huawei said it did not consider Harmony to be a replacement for
Android, which accounted for 85.4% of smartphones shipped in 2019.

 

Apple's iOS had the remaining 14.6%, according to the research firm IDC.

 

Other operating systems such as Samsung's Tizen and Amazon's Fire have
failed to disrupt the handset market.

 

HarmonyOS has so far only been available in some smart TVs.

 

The trade ban imposed by former US President Donald Trump did not stop
Huawei handsets from using Android altogether but limited their
functionality.

 

It was telling that there was expected to be a host of new products but no
new Huawei smartphones unveiled at Tuesday's launch, with the focus instead
on Harmony's use in other internet connected devices such as tablets, smart
speakers and televisions.

 

"HarmonyOS is designed to provide the glue between a growing array of
connected devices that Huawei is targeting," commented Ben Wood, chief
analyst at CCS Insight.

 

"Huawei will be hoping that it can follow Apple's lead, by having a single
software platform that extends in all directions, providing a seamless
experience to customers that buy into its ecosystem of products."

 

China's official Xinhua News Agency reports that the Shenzhen-based tech
giant is anticipating 300 million devices to be equipped with HarmonyOS by
the end of the year.

 

There has been great excitement ahead of the launch inside China, said the
BBC's China media analyst Kerry Allen.

 

"Social media users have picked up on how the characters for 'harmony',
'hong' and 'meng', mean 'ambition', and 'kindness'", she said.

 

"Divisions of China's youth movement, the Communist Youth League, and even
fire rescue and official courthouse accounts, have been promoting the new
system. In the last week, more than 17 million Weibo users have read posts
that include the hashtag 'TheHarmonySmartphoneSystemIsHere'."--BBC

 

 

 

Zoom sales race ahead despite workplaces reopening

Zoom sales have more than doubled after a "very strong" start to the year as
the Covid-19 pandemic continued.

 

The video calls platform has had a boom in users during the crisis as many
employees work from home.

 

Its profits also reached more than $227m (£160m), up from about $27m in the
first quarter of 2020.

 

But analysts previously said the firm could face a battle to remain relevant
as more people get vaccinated and social distancing restrictions ease.

 

Zoom said that in the three months to 30 April, its revenues rose to $956m
from $328m the same period a year earlier.

 

It also upgraded its expectations for the full financial year on Tuesday.

 

Annual revenues are now set to reach up to $3.99bn, up from its previous
estimate of up to $3.76bn.

 

The pandemic, which prompted an abrupt shift to remote work for many
businesses around the world, transformed Zoom into a household name
practically overnight.

 

"Work is no longer a place", the firm's founder Eric Yuan said in a
statement on Tuesday.

 

"We are energised to help lead the evolution to hybrid work that allows
greater flexibility, productivity, and happiness to both in-person and
virtual connections."

 

The company also reported a jump in the number of users who pay for its
services. In the first quarter, businesses with more than 10 employees
totalled about 497,000, up 87% from 2020.

 

But the firm has had to spend more as the number of users signing up for
free events surged and it sought to recruit more staff due to demand.

 

And in a bid to stay relevant as offices reopen, it is set to launch Zoom
Events, aimed at business hosting events that mix online and in-person
elements.

 

Its shares fell sharply in after-hours trade in New York, before recovering
some ground.--BBC

 

 

 

US Supreme Court rejects J&J talc cancer case appeal

The US Supreme Court has declined to hear Johnson & Johnson's appeal over a
pay-out to women who alleged that its talcum powder contained asbestos and
caused them to develop ovarian cancer.

 

The healthcare giant must pay $2.1bn (£1.5bn) in damages to the women.

 

The top US court did not comment on its decision, but has left in place a
2018 verdict that favoured them.

 

Johnson & Johnson (J&J) said decades of independent research show the
product is safe.

 

The company asked the court to review the penalty it had been given after it
was upheld in Missouri in 2020.

 

The Missouri Court of Appeals ruled against J&J's request to throw out the
compensation and punitive damages awarded to the women, but reduced the
total pay-out from the $4.7bn originally decided by a jury.

 

J&J argued that it should not have to defend itself in a case involving 20
women from different states, backgrounds, and who used its products to
different degrees.

 

The healthcare giant said: "The decision by the court to not review the
Ingham case leaves unresolved significant legal questions that state and
federal courts will continue to face on issues related to due process rights
and personal jurisdiction.

 

"The Supreme Court has many times said that its decision to deny hearing a
case expresses no view on the merits whatsoever, and we continue to believe
that our view of the law and the facts will ultimately prevail," it added.

 

J&J to sell baby powder in UK despite stopping US sales

Asbestos discovery triggers baby powder recall

It also pointed out that the matters in front of the court were related to
legal procedure, not safety.

 

"Decades of independent scientific evaluations confirm Johnson's Baby Powder
is safe, does not contain asbestos, and does not cause cancer," it said.

 

It has been at the centre of claims for many years that its talcum powder
contains carcinogens.

 

The brand has always strenuously defended the product's safety.

 

However, it removed its talc-based baby powder from sale last year in the US
and Canada, saying that sales had shrunk partly because of a "constant
barrage" of advertising by lawyers seeking clients to claim against the
company.

 

Talc is mined from the earth and is found in seams close to that of
asbestos, a material known to cause cancer.

 

About 20,000 people in the US have so far lodged claims against the company,
it said at the time.

 

The firm's baby powder it still sold in the UK and in other markets around
the world, where it says there is still significant demand.-BBC

 

 

 

Eurozone inflation up sharply as economies reopen

Inflation in the eurozone rose sharply last month to 2% - just above the
European Central Bank's target.

 

Prices were pushed higher by a very strong rise in energy prices from a year
ago and put inflation at its highest level since October 2018.

 

It comes as Covid restrictions across Europe were scaled back, boosting
economic activity.

 

The figure plays into a debate about whether inflation after the pandemic
could become a serious problem.

 

For much of the last decade, central banks in the developed world were
worrying that inflation was too low.

 

Now as economies recover from the pandemic-driven downturn, inflation is
climbing.

 

Smallest possible margin

For the eurozone, the European Central Bank has a target of below but close
to 2%. So the new figure is above the target, though by the smallest
possible margin.

 

Inflation has also increased in Britain where the latest figure 1.5%, up
sharply from 0.7% the previous month although still below the Bank of
England's target.

 

In the United States, the inflation measure used by the Federal Reserve was
3.6% last month. The Fed's target, like the Bank of England in the UK is 2%.

 

In the eurozone it is the first time inflation has been (just) above target
in more than two years. For most of the time since the pandemic began,
eurozone inflation has been below 1% and for five months until December last
year it was below zero.

 

So that is quite a strong surge in the first half of this year.

 

Andrew Kenningham of Capital Economics expects it go further to an average
of 2.5% in the second half of the year.

 

But he also thinks it will be temporary.

 

The increase in inflation is driven largely by energy prices. They plunged
during the Europe's first lockdown.

 

The turmoil in the energy market at the time was so pronounced around a year
ago that some US crude oil prices even went negative, below zero, although
consumer energy supplies were never that cheap.

 

Now that economic activity has recovered much (though not all) of the lost
ground, energy prices have rebounded and compared with a year ago they are
13% higher in the eurozone.

 

Consumer prices in the eurozone apart for energy rose a very modest 0.9%,
still below the ECB target.

 

The impact of that rebound in energy prices will disappear in time and
Andrew Kenningham expects most of the increase in inflation to be reversed
next year.

 

There are other factors that may push prices higher - he mentions a surge in
demand in travel and hospitality that could lead to some price rises.

 

Supply chain disruptions which raised input prices for manufacturing
industry could also be passed on to consumers.

 

The idea that there will be a only a transitory surge in prices is held by
many economists for the eurozone and other areas.

 

But some do see at least a possibility of a more persistent rise. The surge
in consumer spending may be more widespread than tourism.

 

There is a lot of pent-up saving the people will want to spend. And some
think that the massive stimulus provided by government spending and central
bank policies in many countries could lead to substantially higher
inflation.

 

The Bank of England's chief economist Andy Haldane spoke in February of the
high degree of uncertainty about the outlook for inflation - in both
directions. He said there was a "tangible risk that inflation proves more
difficult to tame" than the financial markets were expecting.-BBC

 

 

 

UK manufacturing growth at 30-year high, says PMI survey

UK manufacturing is growing at its fastest rate for almost 30 years as the
easing of lockdown unleashes pent-up demand, according to a survey.

 

The IHS Markit/CIPS Manufacturing Purchasing Managers' Index (PMI) reached a
high last month of 65.6, up from 60.9 in April.

 

Any reading above 50 indicates growth, and April's figure was the highest
since the survey began in 1992.

 

But there are also signs that suppliers are struggling to keep up with
demand.

 

"Record growth of new orders and employment supported one of the steepest
increases in production volumes in the near 30-year survey history," said
IHS director Rob Dobson.

 

Mr Dobson said growth is being boosted by the unlocking of economies from
Covid restrictions and ongoing vaccination programmes.

 

"This is being felt across the globe, as highlighted by a record rise in new
export business during the latest survey month," he said.

 

However, the survey indicated that many suppliers are struggling to keep up
with the increased demand, which is pushing up the average delivery times to
manufacturers.

 

Businesses particularly highlighted shortages of electronics, plastics and
metals, and there were also delays in transport.

 

In turn, this has led to the highest rise in the cost of supplies since the
survey began in 1992, causing manufacturers to increase their own prices.

 

'Delivery squeeze'

Simon Jonsson, head of industrial products at KPMG UK, said: "Confidence is
high among manufacturers as demand continues to soar, but there's a danger
that many are only seeing the weather in front of them.

 

"Our closest European neighbours - France and Germany - are also witnessing
similar levels of demand for their products. Supply chain bottlenecks are
now starting to appear in Germany and fingers are crossed we will not see
the same elsewhere."

 

Duncan Brock, group director at the Chartered Institute of Procurement &
Supply, said: "The march of the makers has turned into a sprint as the
blocks of lockdowns have been removed, but we haven't seen this level of
price inflation on materials for decades."

 

He warned that supply chain managers anticipate a continuing squeeze on
deliveries and are forward-buying and building stocks, so we may not have
seen price peak yet.

 

"This means bigger inflationary pressures for the wider economy and the
country's place in international trade," Mr Brock said.

 

The beginning of a spending splurge?

Bank of England chief economist Andy Haldane has an economic crystal ball
that is sometimes dysfunctional. Last summer he predicted a V-shaped
recovery that got crushed by Covid's second wave.

 

But in February, when others were more downbeat he predicted households
would drive a rapid recovery in 2021, spending savings of around £250bn.
Today's manufacturing data, dominated by the auto industry, suggest he may
be right second time round.

 

While some of the pent-up demand for cars is domestic, much of it is global
- not least from the reopened economies of the Far East. The steepest
increases in production in three decades is not pure good news because the
manufacturers are struggling to meet demand, source enough raw materials and
recruit the staff they need.

 

And there's strong inflationary pressure - with prices of raw materials
shooting up faster than they have in three decades.

 

There's not much you can do with interest rates to curb surging global
commodity prices. But Haldane and his colleagues may have to act if that
inflationary pressure starts to spread to the rest of the domestic economy,
with serious consequences for the affordability of large debts which poorer
households and small businesses have been forced to take on.--BBC

 

 

AMC shares set for record open as 'meme stocks' surge

Shares of AMC Entertainment Holdings Inc (AMC.N) surged 28% in early deals
on Wednesday, extending a rally and setting up to open at a record high a
day after the company raised $230 million to cash in on a social
media-driven trading frenzy.

 

The movie-theater operator's stock traded at $41 after soaring more than
1,400% so far this year, leading gains among the group of "meme stocks" that
include video game retailer GameStop (GME.N) and BlackBerry Ltd (BB.TO).

 

The company said on Tuesday it had issued 8.5 million shares to Mudrick
Capital Management, bringing its total share sale since December 2020 to
about $1.5 billion.

 

A source later told Reuters that Mudrick had sold off its AMC stake at a
profit, believing the stock was overvalued. read more

 

Still, message volume related to AMC climbed more than 7% on trading-focused
social media site Stocktwits, with about 95.8% of messages reflecting a
positive sentiment.

 

At $41, AMC's shares are trading at more than 10 times analysts' median
price target of $3.70, according to Refinitiv data.

 

BlackBerry's U.S.-listed shares rose about 20% in pre-market trading,
bringing their total yearly gains to more than 75%. GameStop was up 4.5%,
while Koss Corp (KOSS.O) jumped 13%.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

The $15 billion jet dilemma facing Boeing’s CEO

Boeing Co CEO Dave Calhoun faces a multibillion-dollar dilemma over how to
rebuild sales in its core airliner business that has sparked an internal
debate and put the future of the largest U.S. exporter on the line, industry
insiders say.

 

Boeing is reeling from a safety scandal following crashes of its 737 MAX
airliner and an air travel collapse caused by the pandemic. Those crises
have overshadowed a deeper, longer term risk to the company's commercial
passenger jet business.

 

Boeing's share of the single-aisle jetliner market - where it competes in a
global duopoly with Airbus - has faded from some 50% a decade ago to roughly
35% after the 737 MAX's lengthy grounding, according to Agency Partners and
other analysts.

 

Airbus' (AIR.PA) single-aisle A321neo has snapped up billions of dollars of
orders in a recently booming segment of the market, as the largest MAX
variants struggled to block it.

 

Without a perfectly timed new addition to its portfolio, analysts warn
America risks ceding to Europe a huge portion of that market - valued by
planemakers at some $3.5 trillion over 20 years.

 

But Boeing is not yet ready to settle on a plan to develop a new plane to
counter the A321neo, and two leading options - press ahead now or wait until
later - come with financial and strategic risks, several people briefed on
the discussions said.

 

"I'm confident that over a longer period of time, we'll get back to where we
need to get to and I'm confident in the product line," Calhoun said in April
as Boeing won new MAX orders.

 

Asked about the company's discussions and options over a potential new
airplane, a Boeing spokesman said it had no immediate comment beyond
Calhoun's remarks to investors.

 

OPTIONS

 

A weakened Boeing has little margin for error, especially as it tackles
industrial problems hobbling other airliners.

 

Boeing's first option is to strike relatively quickly, bringing to market by
around 2029 a 5,000-mile single-aisle jet with some 10% more fuel
efficiency. That could potentially be launched for orders in 2023.

 

"There is no better way to fix their image than invest in the future now,
pure and simple," said Teal Group analyst Richard Aboulafia.

 

A new single-aisle jet would replace the out-of-production 757 and fill a
void between the MAX and larger 787, confirming a twist to earlier
mid-market plans as reported by Reuters in April last year. The idea took a
backseat early in the pandemic, before regaining attention.

 

It would also be an anchor for an eventual clean-sheet replacement of the
737 family.

 

An alternative option is to wait for the next leap in engine technology, not
expected until the early 2030s. That could involve open-rotor engines with
visible blades using a mixture of traditional turbines and electric
propulsion.

 

Wary of letting short-term product decisions drive strategy, Boeing is also
prioritizing a deeper dive into investments or business changes needed to
regain the No.1 spot, analysts say.

 

TIMING DILEMMA

 

Both approaches carry risks. If it moves too quickly, Boeing may face a
relatively straightforward counter-move.

 

Airbus' preference is do nothing and preserve a favorable status quo,
European sources say. But it has for years harbored studies codenamed
"A321neo-plus-plus" or "A321 Ultimate" with more seats and composite wings
to repel any commercial attack.

 

Such an upgrade might cost Airbus some $2-3 billion, but far less than the
$15 billion Boeing would spend on a new plane.

 

For Boeing, a premature tit-for-tat move runs the risk of merely replicating
the strategic spot it finds itself in now.

 

If it moves too slowly, however, investors may have to bear a decade of
perilously low market share in the single-aisle category, the industry's
profit powerhouse.

 

Those urging restraint, including soon-departing finance chief Greg Smith,
have a simple argument, insiders say.

 

Boeing has amassed a mountain of debt and burned $20 billion in cash
lurching from crisis to crisis.

 

"It's a different world," one insider said. "How could you possibly be
thinking about a new airplane?"

 

However, some engineers at Boeing's Seattle commercial home are crying out
for a bold move to reassert its engineering dominance following the worst
period in its 105-year history.

 

"That should be a priority for Boeing right now," said Tom McCarty, a
veteran former Boeing avionics engineer. "To get back in clear leadership of
advancing technology."

 

ENGINE TALKS

 

As it weighs up when to act, Boeing has sought initial technical data from
engine makers Rolls-Royce (RR.L), Pratt & Whitney (RTX.N) and the General
Electric-Safran (GE.N), (SAF.PA) tie-up CFM International, industry sources
say.

 

A firm competition is not expected for a year or more, they add, a delay
that illustrates Boeing's bind. Rolls, which has most to gain as it tries to
re-enter the lucrative single-aisle market, said last month it would be
ready for any new product.

 

Watching Boeing's decision from the sidelines is China, where state
manufacturer COMAC is working on a C919 narrowbody in a potential challenge
to the cash-cow 737 and A320 families.

 

Sitting on $7 billion in net cash and a second-mover's advantage, analysts
say Airbus appears most comfortable, though it also faces its share of
industrial headaches.

 

A wild card in the deliberations is growing environmental pressure, mirrored
in the priorities of each planemaker.

 

Airbus has pledged to introduce the first hydrogen-powered small commercial
plane in 2035.

 

The "zero-emission" agenda reflects its CEO's conviction that disruptive
technology will play a role in next-generation jets. But industry sources
say it is no coincidence that such rhetoric also steers Boeing away from
launching an interim jet.

 

Boeing has emphasized quicker gains from sustainable aviation fuel (SAF).
Any new 757-style jet would feature the ability to run 100% on SAF, people
familiar with the plan said.

 

While backing the drop-in fuel for technical reasons, Boeing has left itself
enough room to argue that a relatively early new plane would still fit the
industry's environmental objectives.

 

Airbus has meanwhile kept up pressure with proposals last week to almost
double single-aisle output within four years.

 

While some suppliers questioned how quickly the plan was achievable, one
industry executive noted it sent a "message that Airbus exits the crisis as
No.1 and intends to stay there".

 

One risk is that anything that looks like a grab for market share could
trigger the very Boeing jet Airbus hopes to avoid.

 

Asked whether he thought Airbus's expansion plans might provoke Boeing into
launching a new plane, Airbus CEO Guillaume Faury played down the prospect
of a new industry arms race.

 

“If they trust the MAX with the pent-up demand they see for single-aisle
then I don’t see why they would be in a hurry to replace the MAX. If they
are in a different situation they might come to other conclusions,” Faury
told Reuters.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

Korea's business leaders call on Moon to free jailed Samsung boss Lee

Leaders of South Korea's largest conglomerates urged President Moon Jae-in
on Wednesday to pardon Jay Y. Lee, the jailed vice chairman of Samsung
Electronics Co Ltd (005930.KS), to maintain the country's edge in the chip
industry.

 

The plea was made during a luncheon between Moon and chiefs of four major
business empires - Samsung, Hyundai, LG and SK - designed to boost economic
cooperation after Moon and U.S. President Joe Biden agreed to bolster the
global supply chain for high-tech manufacturing. read more

 

Lee, the 52-year-old heir of the world's biggest memory chip maker and
second-largest contract chip manufacturer, has been sentenced to 30 months
in prison after being convicted of bribery, embezzlement and other offences.
read more

 

SK Group chairman Chey Tae-won asked Moon to consider a petition for Lee's
release that was submitted in April jointly by five business lobbies
including the Korea Chamber of Commerce and Industry headed by Chey,
according to Moon's spokeswoman Park Kyung-mee.

 

Moon replied that he "understood" difficulties for the companies, Park said.
He did not elaborate, but appeared more open to the idea after simply saying
at a news conference in March that he would consider public opinion before
deciding.

 

Moon had vowed to not pardon serious economic crimes such as bribery and
embezzlement before taking office in 2017.

 

Legal experts believe Lee is eligible for parole, as he has served more than
half of his 30-month sentence. South Korean law allows parole to be granted
after one-third of the sentence has been served, with the detainee showing
exemplary behaviour.

 

Business leaders have highlighted the need for Lee to be active to retain
South Korea's leading position in the chip industry amid global shortages.
read more

 

"Semiconductors require large-scale investment decisions, and leaders can
only make such decisions in a swift manner," said Kinam Kim, vice chairman
and CEO of Samsung's device business.

 

Biden has called for greater South Korean investment, and Samsung confirmed
a plan to funnel $17 billion into a new plant for chip contract
manufacturing in the United States during Moon's trip to Washington. read
more

 

Lee is in a unique position overseeing all three of Samsung's divisions --
chips, smartphones and home appliances, said Park Jea-gun, a professor at
Hanyang University in Seoul.

 

"It's hard to make big business decisions if not the owner," Park said.

 

But the People's Solidarity for Participatory Democracy, an activist group
that resists pardoning chaebol chiefs, issued a statement saying releasing
Lee would "abuse the legal system to justify corporate crimes."

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

Tesla to buy more than $1 bln of Australian battery minerals a year

Tesla (TSLA.O) said it expects to spend more than $1 billion a year on
battery raw materials from Australia given the country's reliable mining
industry and responsible production practices.

 

Robyn Denholm, chair of the U.S. carmaker, said on Wednesday that Australia,
which is rich in minerals used for batteries like lithium and nickel, is
poised to benefit as developing supply chains for electric vehicle batteries
and the green energy age focus on environmental, social and governance
(ESG).

 

"We expect our spend on Australian minerals to increase to more than $1
billion per annum for the next few years," Denholm, an Australian, told a
Minerals Council of Australia event.

 

Tesla already sources three quarters of its lithium feedstock from Australia
and over a third of its nickel, Denham said, without specifying a dollar
figure.

 

"Australian mining companies do have a good reputation, great expertise,
professionalism and are preferred by manufacturers increasingly concerned
about meeting both today’s and the future’s ESG requirements," she said in
Canberra.

 

The comments are in line with a new policy underway by U.S. President Joe
Biden's Administration to rely on allies to supply of the bulk of the metals
needed to build electric vehicles.

 

The U.S. will then focus on processing those metals domestically into
battery parts, part of a strategy designed to placate environmentalists, two
administration officials with direct knowledge told Reuters last month. read
more

 

Australia, alongside Canada and Brazil, are among the countries expected to
benefit.

 

Australia's exports of hard rock lithium known as spodumene are expected to
hit A$1 billion ($773 million) this year while its nickel exports are
expected to be valued at A$4 billion, government figures show.

 

Tesla also supplies batteries to Australia to store energy captured from
rooftop solar panels which shore up reliability in its energy network.
Australia has the world's highest per capita density of rooftop solar
panels.

 

($1 = 1.2935 Australian dollars)

 

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
344 1674

 


 

 

 

 

 

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