Major International Business Headlines Brief::: 04 June 2021

[Bulls n Bears]

 <https://bullszimbabwe.com/> 

 


 

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments
<https://bullszimbabwe.com/category/blogs/bullish-thoughts/> Bullish
Thoughts        <http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

 


 

 


Major International Business Headlines Brief::: 04 June 2021

 


 

 


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

 


 

 


ü  Biden expands US investment ban on Chinese firms

ü  Travel sector dismay as Portugal faces tougher rules

ü  AMC cinema chain issues warning to small investors

ü  Twitter Blue subscription service launches in Australia and Canada

ü  Apple wants staff back in offices by September

ü  China accuses Western firms over 'harmful' kids' goods

ü  Tesco staff win legal argument in equal pay fight

ü  Asia tracks Wall St lower as U.S. inflation bets perk up

ü  Ackman's Pershing Square SPAC nearing $40-bln deal with Universal Music
Group -sources

ü  Banks bulk up in Hong Kong as China business overshadows politics

ü  Biden proposes 15% corporate minimum tax to win Republican backing of
infrastructure plan

ü  Record-high number of U.S. small businesses can’t fill job openings -NFIB

ü  G7 finance ministers meet in London to broker global tax deal

ü  South Africa: Final Nail in the Coffin for Proposed Khanyisa Coal Power
Station - Approval for Another New Coal-Fired Power Station Has Been Set
Aside By the High Court

ü  Kenya: Italian Firms Cite Kenyatta-Ruto Power Fights in Botched Dams
Tender

ü  Nigeria: Buhari to Launch 12-Month Job Fellowship for 20,000 Graduates
Annually

ü  Tunisia: Utica - Tunisian-French Economic Meeting, Kicks Off

ü  Zambia: Do More to Prepare Zambia for AfCFTA

 

 

 

 

 

 

 

 


 <https://www.facebook.com/Hyundaizimbabwe/> 

 


 

Biden expands US investment ban on Chinese firms

US President Joe Biden is set to ban Americans from investing in dozens of
Chinese tech and defence firms with alleged military ties.

 

The new executive order will come into effect on 2 August, hitting 59 firms
including communications giant Huawei. The list of firms will be updated on
a rolling basis.

 

The move expands an order previously issued by ex-President Donald Trump.

 

Even before the official announcement, China suggested it would retaliate.

 

Under the new order, US investors will be banned from buying or selling
publicly-traded securities for other companies including the China General
Nuclear Power Corporation, China Mobile Limited and Costar Group.

 

It expands the previous list from 31 firms to include surveillance companies
and is aimed at ensuring "US persons are not financing the military
industrial complex of the People's Republic of China," one White House
official said.

 

"The prohibitions are intentionally targeted and scoped to maximise the
impact on the targets while minimising harm to global markets," the official
added.

 

Huawei recently said that sanctions imposed on it by the US in 2019 have had
a major impact on its mobile phone business.

 

The US took action amid claims that the company posed a security risk and
last July, and the UK said it would exclude the company from building its 5G
network.

 

The new list of companies barred from US investment will update one from the
Department of Defense.

 

"We fully expect that in the months ahead... we'll be adding additional
companies to the new executive order's restrictions," the White House said.

 

It comes as the surveillance of citizens, including Uyghurs in the Xinjiang
region in particular, has come under scrutiny.

 

The Biden administration has also accused China of acting more aggressively
abroad and more repressively at home.

 

The China-US relationship is crucial to both sides and the wider world, with
Beijing repeatedly calling on the new administration in Washington to
improve relations which deteriorated under predecessor Donald Trump.

 

In their first meeting under the Biden presidency last month, the two
countries' top trade negotiators held "candid, pragmatic" talks on their
trading relationship.

 

President Biden has insisted, however, that existing tariffs will be kept in
place for now as he looks to boost the US economy, which was hit hard early
in the pandemic but is now recovering.

 

Chinese Ministry of Foreign Affairs spokesman Wang Wenbin suggested China
would retaliate against the latest measures.

 

"China will take necessary measures to resolutely safeguard the legitimate
rights and interests of Chinese enterprises and resolutely support Chinese
enterprises in safeguarding their rights and interests in accordance with
the law," he said.—BBC

 

 

Travel sector dismay as Portugal faces tougher rules

The travel and tourism industry has hit back after the announcement of
tighter rules on foreign holidays.

 

No more countries will be added to the green list and Portugal will be
relegated to amber from next Tuesday.

 

The government said Portugal had seen a doubling of infection rates since
the previous travel review.

 

Critics warned of a loss of jobs and confidence, while Easyjet said the
government had torn up its own rules.

 

Moving Portugal from the green to the amber list was a "safety first
approach" to "give us the best chance of unlocking domestically", said
Transport Secretary Grant Shapps.

 

Labour said moving Portugal from green to amber on the UK's foreign travel
system was "not the answer" and called for the amber list to be scrapped
altogether.

 

Labour's shadow home secretary Nick Thomas-Symonds accused the government of
causing "chaos with the mishandling of travel restrictions at the border".

 

In addition to not adding countries to the green list and relegating
Portugal to amber, seven more countries have been added to the red list.

 

All the changes will take effect on Tuesday at 04:00.

 

In England's traffic light scheme, countries are classed as green, amber or
red - with different rules for quarantine and Covid tests.

 

Scotland, Wales and Northern Ireland have similar rules.

 

The government says you should not holiday in red or amber destinations -
which means most countries. Holidays to countries on the green list can go
ahead without quarantining when you return.

 

There had been some speculation that Greek and Spanish islands could be
added to the green list as well as Malta, Finland and parts of the Caribbean
- but the government insisted it had to remain cautious.

 

The UK government announced that Portugal would be on the travel green list
on 7 May.

 

Its low point for new cases (on a seven-day average) was 10 May and the
number has been rising gradually since then.

 

On 2 June, there were 5.4 new cases per 100,000 people per day, which was
only a touch higher than the UK at 5.1, although differences in the amount
of testing being done make that comparison difficult. It is considerably
higher than Israel, for example, which is still on the green list and had
0.2 new cases per 100,000 that day.

 

The decision about which countries go on the green list is not just about
the number of new cases, but a number of other criteria, such as the amount
of testing capacity. That has not changed dramatically in the past month.

 

Presence of variants of concern (VOCs) is also important. The latest report
from the World Health Organization says all four VOCs have now been found in
Portugal. A month ago, the variant first identified in India was not yet a
VOC. The transport secretary says a new mutation of that variant has now
been found in Portugal.

 

'Torn up rule book'

British Airways said this was "incredibly disappointing and confusing news,
not just for aviation but also for our customers".

 

"The UK has reached a critical point and urgently needs travel with low-risk
countries, like the US, to re-start the economy, support devastated
industries and reunite loved ones," a spokesperson said.

 

Johan Lundgren, Easyjet's chief executive, said that with "Portuguese rates
similar to those in the UK", relegating the country "simply isn't justified
by the science".

 

"When this framework was put together, consumers were promised a waiting
list to allow them to plan.

 

"Yet the government has torn up its own rule book and ignored the science,
throwing people's plans into chaos, with virtually no notice or alternative
options for travel from the UK.

 

"This decision essentially cuts the UK off from the rest of the world," he
said.

 

Jet2 said it would delay restarting flights from 23 June to 1 July.

 

"We know how disappointed our customers and independent travel agency
partners will be following today's announcement, and we share their concerns
and frustrations," said Steve Heapy, Jet2 chief executive.

 

Charlie Cornish, Manchester Airports Group chief executive, said: "We were
told the traffic light system would allow people to travel safely, with the
right measures in place to manage risk for different countries.

 

"But it is now clear the government doesn't trust its own system and that
international travel is being unfairly scapegoated, with tens of thousands
of jobs placed at risk in the process.

 

John Holland-Kaye, chief executive of Heathrow Airport, said: "Ministers
spent last month hailing the restart of international travel, only to close
it down three weeks later, all but guaranteeing another lost summer for the
travel sector.

 

"Everyone wants to protect public health, but the entire point of the Global
Travel Taskforce was to establish a system to unlock low-risk travel safely.

 

"Britain is the worst performing economy in the G7, and in the week that the
prime minister hosts G7 leaders to launch his government's vision of Global
Britain, he's sending a message that the UK will remain isolated from the
rest of the world and closed to most of its G7 partners."

 

Virginia Messina, vice-president of the World Travel & Tourism Council,
called the moves a "huge disappointment for businesses and holidaymakers", a
point underlined by falls in the share prices of several airlines.

 

She said: "The government has once again cold-shouldered travel and tourism
by refusing to add any new destinations to the already slim green list.

 

"The UK could and should leverage its hard-won competitive advantage from
one of the world's best vaccine rollout programmes, to restore mobility and
reopen the doors to safe international travel."

 

'Safe and ready'

Paul Charles, chief executive of the PC Agency and spokesman for parts of
the travel sector, said tighter restrictions "will further threaten tens of
thousands of jobs in aviation and travel, not to mention further damage
consumer confidence".

 

He said that data showed several countries should be green-listed, so the
government's decision "defies logic" and was being driven by "a policy of
fear".

 

John Foster, the CBI's director of policy, said businesses across the
country were "losing out on key links with trading partners just as the rest
of the world is opening up".

 

"The international travel sector is on its knees and unable to trade its way
to recovery. Without a successful summer season, the government will need to
consider further sector specific support to save jobs and skills essential
for future growth," he added.

 

The Caribbean island of Grenada was hoping to be put on green, and tourism
minister Clarice Modeste Curwen said she was "extremely disappointed" not to
be added.

 

She said: "Grenada has had just 161 cases of Covid-19 since the onset of the
pandemic and we have reported zero new cases locally since February.

 

"We strongly believe that Grenada should be added to the UK's green list as
we have taken all the necessary measures to ensure the islands are safe and
ready for visitors."

 

Shares in airlines and travel companies fell after the BBC reported that
Portugal is set to move from green to amber.

 

IAG, the parent company of British Airways, fell 5%, with Easyjet sinking
about the same. Ryanair closed 1.3% lower and Tui fell about 4.5%.-BBC

 

 

 

AMC cinema chain issues warning to small investors

US cinema chain AMC has put out a blunt warning to smaller investors as it
launched a new share sale.

 

It warned against buying "unless you are prepared to incur the risk of
losing all or a substantial portion of your investment."

 

On Thursday it unveiled plans to sell up to 11.6 million shares off the back
of surging prices in the "meme" stock popularised on social media.

 

AMC stock was lower by more than 20% at the end of Thursday's trading.

 

It comes a day after the company updated its offer for retail investors, who
can now claim a tub of free popcorn if they sign up to a regular newsletter.

 

A number of Wall Street analysts have said AMC is already heavily overvalued
and many institutional traders have said they were steering clear of the
stock, the latest target of a number of small-time traders organised on
Reddit and other social media.

 

 

AMC cinema shares surge in 'frantic' trading

On Thursday, it said in a filing that it would sell up to 11.55 million
shares of common stock, with money raised going towards "general corporate
purposes," which could cover paying off current debts or buying new cinemas.
Its shares fell after the announcement.

 

This marks its second share sale in three days, having raised $230.5m
(£163.3m) by selling 8.5 million new shares to the hedge fund Mudrick
Capital Management, which later sold those shares at a profit.

 

Why has AMC stock been soaring?

The cinema chain operator said it believed current prices reflected "market
and trading dynamics unrelated to our underlying business".

 

In the year to date, shares in AMC have soared 2,421% - despite its cinemas
being largely shut during the pandemic.

 

But it is the latest example of small investors trying to seize power from
Wall Street giants.

 

Major hedge funds had bet billions of dollars that GameStop and AMC's shares
would fall.

 

They have since faced huge losses after amateurs, swapping tips on social
media sites like Reddit or Twitter, drove prices up in so-called "meme"
stocks.

 

AMC said on Thursday that it did not know "how long these dynamics will
last.

 

"Under the circumstances, we caution you against investing in our Class A
common stock, unless you are prepared to incur the risk of losing all or a
substantial portion of your investment," it said.

 

Analysts have also warned that the stock may be overvalued due to the rise
of streaming and competition from other entertainment companies.

 

David Trainer, chief executive of investment research firm New Constructs,
said: "AMC's business was trending in the wrong direction even prior to the
Covid-19 pandemic... We think AMC's stock is worth $0 per share, given its
weak earnings, dilution from recent stock offerings and mountain of debt."

 

Despite that, AMC has been among the biggest winners from a spike of
interest in meme stocks, fuelled in part by a new generation of social
media-centric small traders.

 

On Wednesday, #AMCstock was trending on Twitter in the US as investors
discussed their holdings and the share price nearly doubled.

 

The Securities and Exchange Commission chairman Gary Gensler said at a
hearing last month that it will report on issues around volatile "meme"
stocks this summer.

 

He said that although online forums such as Reddit can serve as a "real
community", he is concerned about "the risks that nefarious actors may try
to send signals to manipulate the market".-BBC

 

 

Twitter Blue subscription service launches in Australia and Canada

Twitter is launching its new subscription service, Twitter Blue, in
Australia and Canada on Thursday.

 

The paid-for extra service will add features such as an "undo tweet" button,
bookmarks, and a reader mode, Twitter said.

 

The limited launch is designed to "gain a deeper understanding" of what
customers are looking for.

 

But the company also said the free-to-use version of the platform would also
remain.

 

"We've heard from the people that use Twitter a lot, and we mean a lot, that
we don't always build power features that meet their needs," the company
said in a statement.

 

"We took this feedback to heart, and are developing and iterating upon a
solution that will give the people who use Twitter the most what they are
looking for: access to exclusive features and perks that will take their
experience on Twitter to the next level."

 

Twitter said the new subscription was not designed to undermine the free
experience, but to offer "enhanced and complementary" features "for those
who want it".

 

It will cost $3.49 in Canadian dollars and $4.49 in Australian dollars per
month, Twitter said.

 

No date has been announced for other countries, but previous listings in
mobile app stores have suggested it will eventually cost $2.99 in the US and
£2.49 in the UK.

 

Blue perks

Twitter said subscribers will get "perks" - giving examples such as
customisable app icons for phone home screens and what it calls "fun colour
themes" for the app.

 

But they will also have access to a "dedicated" customer support, the
company says.

 

The additional features that Twitter says were inspired by user requests
include:

 

"We will be listening to feedback and building out even more features and
perks for our subscribers over time," it said.

 

It does not, however, include verification in the form of a "blue tick" on a
user profile, which cannot be bought.

 

Twitter recently re-opened its verification applications for the fist time
in years, but was forced to shutter the programme for a few days after just
a week of accepting them, because it was inundated with requests.

 

Twitter made no secret of plans to charge its top users a small fee for some
extra perks - but it's only dipping its wing in the water for now.

 

The much-asked-for undo tweet button is undoubtedly top of the list, for all
of us who've ever had a screamer of a typo, or - even worse - accidentally
tweeted something we meant to search for.

 

But other features are squarely targeted at the Twitterati elite.

 

When Twitter bought web reader firm Scroll in May, it made a big deal about
Twitter being for news and discussion. Bookmarks and the reader feature for
long threads are firmly targeted there.

 

And for good reason.

 

Twitter's growth in active users has slowed in recent years - a potential
problem for any social network, where perceived value is often based on
numbers. Twitter has never had the users that Facebook has - it boasts
hundreds of millions, but not billions.

 

But many of its biggest users are media personalities, politicians, and
business leaders - the type of people for whom a small monthly fee might not
be too much to ask.

 

This is new territory. Unfounded rumours that Facebook might one day ask for
a fee have led to digital panic in the past - so Twitter's two-country
opener is a test to see if the idea will fly.-BBC

 

 

Apple wants staff back in offices by September

Apple wants its employees to return to offices by September, a company-wide
memo sent to staff on Wednesday said.

 

Workers must return to their desks for at least three days a week, chief
executive Tim Cook wrote. Some staff members will be given the option to
work the remaining two days remotely.

 

Teams that require "in-person" work will return for four or five days.

 

Apple also told staff they will be able to apply for the chance to work
remotely for two weeks a year.

 

However, managers will need to approve remote work requests.

 

Mr Cook said that despite a smooth transition to remote working, it was not
an adequate replacement for in-person collaboration.

 

"For all that we've been able to achieve while many of us have been
separated, the truth is that there has been something essential missing from
this past year: each other," he said in the document, seen by The Verge.

 

"Video conference calling has narrowed the distance between us, to be sure,
but there are things it simply cannot replicate."

 

He added: "I know I'm not alone in missing the hum of activity, the energy,
creativity and collaboration of our in-person meetings and the sense of
community we've all built."

 

Apple has gone from strength-to-strength during the pandemic with its
overall revenues jumping 50% year-on-year largely because of a surge in
iPhone sales.

 

The company has also been more conservative regarding its working from home
policy than other tech giants.

 

Facebook announced last year that its employees could work from home
full-time as long, as they get approval from their manager.

 

Twitter chief executive Jack Dorsey also made headlines when he announced a
similar policy in May 2020.-BBC

 

 

 

China accuses Western firms over 'harmful' kids' goods

China has accused several Western clothing brands of selling goods that
could be harmful to children.

 

A warning notice on the country's customs administration website listed 81
items imported by companies including Nike, H&M and Zara.

 

In March, China targeted foreign clothes retailers as an international
backlash grows over claims of abuses in the cotton-growing Xinjiang region.

 

Earlier this year, several Western nations imposed sanctions on China.

 

The announcement from China's General Administration of Customs included
items like children's clothing, shoes, toys, toothbrushes and baby bottles
that were spotted during examinations from June 2020 to May 2021.

 

Nine batches of H&M girls' cotton dresses were said to contain "dyes or
harmful substances [that] may be absorbed by the body through the skin,
mouth, etc. and endanger health."

 

The same issue was raised for children's clothes imported by Zara, Nike
boys' t-shirts and batches of Gap boys' cotton pyjamas.

 

H&M, Zara, Nike and Gap have not yet responded to requests for comment from
the BBC.

 

The notice is the latest blow to Western clothing brands operating in China,
which have been targeted amid an international backlash over claims of
abuses in the cotton-growing Xinjiang region, home to the mostly Muslim
Uighur minority group

 

Several big companies have expressed concern over allegations that Uighurs
are being used as forced labour.

 

Some firms' online shops have been blocked and their stores have vanished
from some digital maps.

 

China initially targeted H&M and Nike but that has widened to include
Burberry, Adidas and Converse, among others.

 

While H&M's physical stores in China remain, it is no longer possible to
hail a taxi to the shops using an app and consumers can't shop online.
Instead China is championing local brands.

 

In March, several Western countries imposed sanctions on officials in China
over rights abuses against the mostly Muslim Uighur minority group.

 

China has detained Uighurs at camps in the north-west region of Xinjiang,
where allegations of torture, forced labour and sexual abuse have emerged.

 

The sanctions were introduced as a coordinated effort by the European Union,
UK, US and Canada.

 

Beijing has denied the allegations of abuse, saying the camps are
"re-education" facilities used to combat terrorism.

 

China has also hit back with retaliatory sanctions on Western lawmakers,
scholars and institutions.-BBC

 

 

 

Tesco staff win legal argument in equal pay fight

Thousands of current and former Tesco workers have won a legal argument in
their fight for equal pay.

 

The European Court of Justice has ruled that an EU law could be relied on in
making equal pay claims against their employer.

 

Tesco workers, mostly women, have argued that they failed to receive equal
pay for work of equal value with colleagues in its distribution centres who
are mostly men.

 

They said this breached EU and UK laws.

 

Tesco, the UK's biggest retailer, and law firm Leigh Day, acting on behalf
of the workers, sought clarification from the Court of Justice of the
European Union.

 

They asked the court to rule on a specific aspect of European law - whether
the so-called "single source" test applies to businesses in the UK.

 

Under EU law, a worker can be compared with somebody working in a different
establishment if a "single source" has the power to correct the difference
in pay.

 

Earlier this year, the Supreme Court ruled that Asda shop workers can
compare their roles with those of their colleagues in distribution centres
for the purposes of equal pay. This ruling mainly focused on the UK legal
test for comparability.

 

'Time to accept'

According to Leigh Day, the latest decision reinforces the Supreme Court's
ruling and makes it extremely difficult for other supermarkets to argue the
roles of shop workers cannot be compared with those of their colleagues in
distribution centres.

 

Kiran Dauka, a partner in the employment team at Leigh Day, said: "This
judgement reinforces the Supreme Court's ruling that the roles of shop floor
workers can be compared to those of their colleagues in distribution centres
for the purposes of equal pay.

 

"For a long time, employers have argued that UK law in this area is unclear,
but this judgment is simple: if there is a single body responsible for
ensuring equality, the roles are comparable.

 

"Clarification from the CJEU confirms that this single source test can be
relied upon by people in the UK bringing an equal value claim. This means
that employers can no longer hide behind the grey areas of UK law.

 

"It's time for supermarkets to accept that the roles of shop floor workers
and distribution centre workers are comparable."

 

'Uplifting' decision

Pam Jenkins, who works at Tesco, said: "To get a judgement confirming shop
floor workers can use an easier legal test to compare their jobs to male
colleagues in distribution is uplifting.

 

"I've always been proud to work at Tesco, but knowing that male colleagues
working in distribution centres are being paid more is demoralising.

 

"I'm hopeful that Tesco will recognise the contribution shop floor workers
make to the business and reflect that in our pay."

 

The legal test for comparability is only the first of three stages within
Asda's overall pay claim, which is expected to take several years to
conclude.

 

Leigh Day is also handing similar equal pay claims against Sainsbury's,
Tesco, Morrisons and Co-op, which are not as far advanced.

 

A Tesco spokesperson said: "The jobs in our stores and distribution centres
are different. These roles require different skills and demands which lead
to variations in pay - but this has absolutely nothing to do with gender.

 

"We reward our colleagues fairly for the jobs they do and work hard to
ensure that the pay and benefits we offer are fair, competitive and
sustainable.

 

"These claims are extremely complex and will take many years to reach a
conclusion. We continue to strongly defend these claims."-BBC

 

 

Asia tracks Wall St lower as U.S. inflation bets perk up

A man wearing a facial mask, following the coronavirus disease (COVID-19)
outbreak, stands in front of an electric board showing Nikkei (top in C) and
other countries stock index outside a brokerage at a business district in
Tokyo, Japan, January 4, 2021.

 

 

Asian stocks followed Wall Street lower on Friday as signs of a
strengthening U.S. recovery boosted bets for higher inflation and an earlier
tapering of Federal Reserve stimulus.

 

U.S. Treasury yields jumped, lifting the dollar and hurting tech shares,
after better-than-expected employment data overnight raised expectations for
a strong reading for nonfarm payrolls on Friday, while a measure of service
sector activity climbed to a record high. read more

 

Japan's Nikkei (.N225) fell 0.8% early in the Asian session, while MSCI's
broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was off
0.3%.

 

Chinese blue chips (.CSI300) slipped about 0.1% at the open.

 

On Wall Street, the S&P 500 (.SPX) lost 0.4%, while the Nasdaq Composite
(.IXIC) suffered a 1% slide. The Dow Jones Industrial Average (.DJI) fared
relatively better, slipping 0.1%.

 

U.S. stocks got some relief into the close on reports that President Joe
Biden is willing to compromise over a proposed corporate tax hike. read more

 

The 10-year Treasury yield rose as high as 1.6320% in Asia, after advancing
nearly four full basis points overnight.

 

The dollar index held Thursday's 0.7% rally, its biggest since April, to
hover around 90.50.

 

"U.S. real rates have moved higher – not great for risk or sentiment," Chris
Weston, head of research at brokerage Pepperstone in Melbourne, wrote in a
note to clients.

 

"Tech is looking pretty shaky."

 

While Fed officials have consistently said they expect current inflationary
pressures to be transitory and for ultra-easy monetary policy to stay in
place for some time, they are also increasingly touting the need to at least
start talking about a tapering of stimulus.

 

New York Fed President John Williams said on Thursday that the U.S. economy
is still far from the point at which the central bank might begin to
withdraw its support, although it makes sense for officials to begin
discussing their options for adjusting policy.

 

Fed Chair Jerome Powell speaks on central banks and climate change at a
conference later in the global day.

 

Investors are carefully parsing the economic data to gauge if inflation
could prove sticky enough to force the Fed's hand on tapering.

 

Last month, much-weaker-than-expected nonfarm payrolls numbers knocked back
those expectations, weakening Treasury yields and the dollar.

 

This month, economists forecast private payrolls likely increased by 600,000
jobs in May, after rising only 218,000 in April.

 

"Clearly, traders are covering USD shorts into the jobs data," Pepperstone's
Weston wrote.

 

"I am not even going to try and predict this one, it is a lottery, although
the so-called 'whisper number' is closer to 790,000."

 

Gold remained weaker following a 2% tumble Thursday, its biggest since
February, amid a stronger dollar.

 

Crude oil retreated from more than two-year highs on Friday after weekly
U.S. crude stocks fell sharply while fuel inventories rose more than
expected.

 

Brent futures fell 0.4% or 25 cents to $71.06 a barrel, after touching their
highest since May 2019 earlier in Thursday's session. U.S. WTI slipped 0.3%
or 23 cents to $68.58 a barrel, from as high as $69.40 a day earlier, the
strongest since October 2018.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

Ackman's Pershing Square SPAC nearing $40-bln deal with Universal Music
Group -sources

Billionaire investor William Ackman's blank-check firm Pershing Square
Tontine Holdings (PSTH.N) is nearing a deal with Universal Music Group that
would value the world's biggest music label at nearly $40 billion, two
people familiar with the matter said.

 

A deal of that size, if completed successfully, would mark the biggest-ever
merger involving a so-called special purpose acquisition company (SPAC),
similar in size to the $40-billion deal that ride-hailing giant Grab
Holdings clinched in April.

 

Pershing Square Tontine Holding's shares were down nearly 6% at $23.5 a
share in after-market trade, close to its initial public offering (IPO)
price of $20, after news of the potential deal broke. The closer the SPAC
shares trade to their IPO price, the more skeptical investors are that the
deal will be completed.

 

The sources cautioned that there was no guarantee that Universal and
Pershing Square would finalize the deal and the talks can still fall apart.
Ackman told his investors late last month that he hoped to make an
announcement on the Tontine target within weeks.

 

Without naming the company, Ackman said on the call that his team was
"working to complete the transaction" and that he likes the business and
loves the management team.

 

SPACs like Pershing Square Tontine raise money in an initial public offering
with the aim of merging with a private company. For the private company, the
process is an alternative to listing its shares through an IPO.

 

The money raised for a SPAC sits in a trust earning interest until the SPAC
manager identifies a company to buy.

 

Nearly a year ago, in July 2020, Pershing Square raised $4 billion in what
was the biggest IPO by a blank-check firm.

 

Guggenheim Investments, hedge fund The Baupost Group, and Wells Capital
Management are among the biggest investors in Pershing Square Tontine.

 

The deal with Universal could be financed using the cash in trust, without
the need of financing through a so-called private investment in public
equity, or PIPE, as they are popularly referred to, two people familiar with
the talks said.

 

If, however, investors choose to reject the deal and redeem their shares,
Ackman could face a significant hurdle in putting together the financing
required to close the deal.

 

Universal Music is majority-owned by French media giant Vivendi, which last
month said the equity of the music label was worth 33 billion euros ($40
billion), or more than the market value of the parent company. Tencent
Holdings owns a roughly 20% stake in Universal. read more

 

Vivendi has been exploring taking Universal public, including through a
traditional IPO.

 

In documents released ahead of Vivendi's general meeting scheduled in June,
Vivendi said that Universal was drawing interest from potential investors
and that it could sell some of its stake to a "strategic partner" ahead of
the distribution of Universal's shares.

 

At the time, Vivendi said it intended to keep at least a 10% stake in the
company for a long period of time.

 

"Universal Music is a business that can be valued without speculating about
it having a future," said Erik Gordon, a professor of business at the
University of Michigan. "The terms of the Tontine SPAC also are better than
the terms of most SPACs."

 

The Wall Street Journal reported the news earlier on Thursday.
(https://on.wsj.com/3vPqub3)

 

A spokesman for Pershing Square Tontine declined to comment. Universal Music
Group did not immediately respond to a Reuters request for comment.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

Banks bulk up in Hong Kong as China business overshadows politics

Some global banks, funds and other financial services providers say they are
stepping up hiring in Hong Kong, in a sign the city’s unique position as a
financial gateway to China is outweighing concerns about Beijing’s
tightening grip over it.

 

Goldman Sachs Group Inc (GS.N), Citigroup Inc (C.N), UBS AG (UBSG.S) and
other banks are each hiring hundreds of people in the city this year, adding
substantially to their existing ranks.

 

Citigroup, for example, has said it is bulking up its staffing by 1,500
people, including additional headcount and replacements in 2021, double the
number of people it hired a year ago. It has about 4,000 people in the city.
A Goldman spokesman said the bank, which has about 2,000 people in Greater
China, expects hiring in Hong Kong to be up 20% this year.

 

The Securities and Futures Commission, Hong Kong's market regulator, is
seeing a rebound in licenses it issues for people involved in asset
management, securities and other financial activities, according to data on
its website. The total number of licenses it issued was up 1.7% at the end
of March, compared with nine months earlier, and just shy of an all-time
peak in 2019.

 

"Hong Kong has some unique advantages, and it will remain the gateway for
many of our local and global clients to access China," said Kaleem Rizvi,
Head of Citi's Asia-Pacific corporate bank.

 

Many financial companies slowed hiring last year, after protests against
Chinese rule and a new security law imposed on the city to crush dissent by
Beijing, as well as the coronavirus pandemic, six bankers, recruiters and
other industry executives said.

 

The increased hiring plans of some major players show that they are now
willing to live with the political risks.

 

"Everyone in the business community I have spoken with welcomes the peace
and stability now, compared with the chaos of 2019," said Weijian Shan,
chairman and chief executive of Hong Kong-based private equity group PAG.

 

To be sure, politics remains contentious and unsettling for some finance
professionals, some bankers have said. Some expatriate financial workers
have left or considered leaving Hong Kong, along with thousands of residents
of the former British colony.

 

Hong Kong police have asked some banks to hand over account details of
opposition activists and politicians arrested under a stringent national
security law imposed by Beijing, and the government has threatened jail time
for bankers handling assets belonging to media tycoon Jimmy Lai frozen under
the new law.

 

Hong Kong's financial regulators declined to comment on banks' hiring plans
or some bankers' disquiet about the political tightening.

 

CLOSE TO CHINA

 

Bankers and other financial services professionals interviewed by Reuters
said much of the lure of being in Hong Kong comes from the city's close ties
to China and the business it brings.

 

That business is booming. Flows via the stock connect schemes linking Hong
Kong with the Shanghai and Shenzhen exchanges rose to record highs in the
first quarter of 2021.

 

Companies, mostly from mainland China, raised more money through Hong Kong
listings in the first five months of this year than they did in the same
period of the last four years combined, Refinitiv data shows. Mergers and
acquisitions in Greater China are the highest since 2018.

 

Anthony Fasso, Asia Pacific chief executive of global asset manager
PineBridge Investments, said Hong Kong was adapting to the new realities.
“We believe that Hong Kong will remain a globally competitive international
city at the doorstep of one of the largest and fastest growing economies in
the world,” Fasso said.

 

HIRING SPREE

 

Besides Goldman and Citigroup, Swiss bank UBS hired 200 people in the year
through March, which consisted of 20 new full-time staff compared to seven
in the previously financial year, a spokesman said.

 

The bank took on 100 contractors and 80 graduates in the year to March. It
was the highest number of graduate recruits to join UBS in more than 10
years. The bank has 2,500 people based in Hong Kong.

 

HSBC Holdings Plc (HSBA.L) has said it plans to add 400 staff in Hong Kong
this year, part of its plan to recruit 5,000 people in the next five years
in the region to wealth management in Asia.

 

Lok Yim, Hong Kong chief executive of Deutsche Bank AG (DBKGn.DE), said the
German bank was also planning on making further strategic hires, after a
first quarter that had been its strongest in years.

 

“We are probably two to three times as busy now as we were late last year,”
said Olga Yung, regional director at recruitment firm Michael Page (PAGE.L)
in Hong Kong.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

Biden proposes 15% corporate minimum tax to win Republican backing of
infrastructure plan

U.S. President Joe Biden offered to scrap his proposed corporate tax hike
during negotiations with Republicans, two sources familiar with the matter
said on Thursday, in what would be a major concession by the Democratic
president as he works to hammer out an infrastructure deal.

 

Biden offered to drop plans to raise corporate tax rates as high as 28% and
instead set a minimum 15% tax rate aimed at ensuring all companies pay
taxes, sources said.

 

In return, Republicans would have to agree to at least $1 trillion in new
infrastructure spending, one source said. And Biden has not given up on
seeking as much as $1.7 trillion.

 

With the change, funding for the plan would lean heavily on increased tax
enforcement, scrapping inheritance tax breaks for wealthy families as well
as other sources like $75 billion in unspent COVID-19 relief funds, one
source said.

 

Biden’s 15% tax floor seeks to stop large, multinational companies like
Amazon.com Inc (AMZN.O) from paying little to no U.S. taxes. Currently many
of these companies show large profits on earning statements but shift their
liability to more tax-friendly countries.

 

White House spokeswoman Jen Psaki said Biden's proposal "should be
completely acceptable" to Republicans that want to leave 2017 corporate tax
cuts in place, she said. "We're open to other options," Psaki said, as long
as they do not hike taxes on people making less than $400,000.

 

The Biden alternative assumes $1.7 trillion in revenues over 15 years to pay
for new spending over eight years.

 

The funds would include $700 billion from stepped-up enforcement of existing
taxes, $200 billion from ending a capital gains tax break on large
inheritances and $75 billion in unspent COVID-19 funds. The remainder would
come from other proposals including ending certain fossil fuel subsidies, a
new fee on commercial truck mileage and the 15% minimum corporate tax.

 

Biden's initial plan called for $2.25 trillion in infrastructure spending
and new revenue, including $857.8 billion from the prior proposal to raise
corporate income tax from 21% to 28%.

 

"He is personally leaning in, willing to compromise, spending time with
senators - Democrat and Republican - to find out what is the art of the
possible," Commerce Secretary Gina Raimondo told CNN in an interview on
Thursday.

 

"The only thing he won't accept is inaction," she said. "It has to be big
and bold, $1 trillion or more."

 

Biden has a previously scheduled meeting with Republican Senator Shelley
Moore Capito, the party's main negotiator on infrastructure, on Friday.

 

At an appearance in Kentucky, Senate Minority Leader Mitch McConnell said,
"We're still hoping that we can come to an agreement on a fully paid for and
a significant infrastructure package."

 

He added that the discussions are focused on "maybe $1 trillion.” "I don't
know whether we're going to reach an agreement or not," he said.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

Record-high number of U.S. small businesses can’t fill job openings -NFIB

Nearly half of U.S. small business owners reported unfilled job openings in
May, marking the fourth consecutive month of record-high readings as finding
qualified applicants remains a lingering challenge, a trade group said on
Thursday.

 

The National Federation of Independent Business said in its monthly jobs
report that 48% of small business owners reported unfilled job openings in
May on a seasonally adjusted basis, up from 44% in April. May's reading is
26 points higher than the 48-year average of 22%.

 

Furthermore, the report showed that 93% of owners looking to hire reported
few or no “qualified” applications for the positions they were trying to
fill last month.

 

Forty percent of small businesses surveyed currently have job openings for
skilled workers and 27 percent have openings for unskilled labor, up 3
points and 7 points, respectively.

 

“Small business owners are struggling at record levels trying to get workers
back in open positions,” NFIB Chief Economist Bill Dunkelberg said in a
statement. “Owners are offering higher wages to try to remedy the labor
shortage problem. Ultimately, higher labor costs are being passed on to
customers in higher selling prices.”

 

The report comes as the number of Americans filing new claims for
unemployment benefits fell below 400,000 last week for the first time since
the COVID-19 pandemic began more than a year ago.

 

Additionally, hiring seems to have strengthened in May. The ADP National
Employment Report showed on Thursday that private payrolls increased by
978,000 jobs, which was the largest increase since June 2020, after rising
by 654,000 in April.

 

The Department of Labor will release data on nonfarm payrolls on Friday.
Economists polled by Reuters forecast nonfarm payrolls increased by 650,000
jobs in May after rising by just 266,000 in the previous month.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

G7 finance ministers meet in London to broker global tax deal

Finance ministers from the G7 group of rich nations will meet in London on
Friday for two days of talks aimed at moving closer to a global deal to
raise more tax from the likes of Google, Facebook and Amazon.

 

The gathering, chaired by British finance minister Rishi Sunak, will be the
first time all seven ministers will meet face-to-face since the start of the
coronavirus pandemic.

 

U.S. President Joe Biden's willingness to raise taxes on large businesses
also creates more chance of an international consensus than under his
predecessor Donald Trump.

 

"I'm hugely optimistic that we will deliver some concrete outcomes this
weekend," Sunak said in a statement released late on Thursday.

 

Sunak stressed the importance of his fellow ministers from the United
States, Japan, Germany, France, Italy and Canada being able to meet
face-to-face in Lancaster House, an ornate 19th-century mansion almost next
door to Buckingham Palace.

 

“You need to be round a table, openly, candidly talking through things,”
Sunak told Reuters in an interview this week.

 

Due to COVID restrictions, ministerial delegations have been cut down and
there are few travelling journalists. Seating plans have been redesigned
with the help of public health officials.

 

But the bigger challenge remains reaching an agreement on tax reform which
could then be presented to a broader group of countries, the G20, at a
summit in Venice in July.

 

French finance minister Bruno Le Maire said ahead of the meeting that an
agreement would be a "decisive step" which he thought was "within reach".

 

However, Japanese finance minister Taro Aso said on Monday that he did not
expect agreement this week on a specific minimum tax rate.

 

The U.S. Treasury expects a fuller agreement to come when Biden and other
heads of government meet at a secluded beach resort in southwest England on
June 11-13.

 

MINIMUM 15% RATE

 

The United States has proposed a minimum global corporate tax rate of at
least 15%. If a company paid tax somewhere with a lower rate, it would
probably have to pay top-up taxes.

 

But just as important for Britain and many other countries is that companies
pay more tax where they make their sales -- not just where they book
profits, or locate their headquarters.

 

The United States wants an end to the digital services taxes which Britain,
France and Italy have levied, and which it views as unfairly targeting U.S.
tech giants for tax practices that European companies also use.

 

British, Italian and Spanish fashion and luxury goods exports to the United
States will be among those facing new 25% tariffs later this year if there
is no compromise.

 

The United States has proposed levying the new global minimum tax only on
the world's 100 largest and most profitable companies.

 

Britain, Germany and France are open to this approach but want to ensure
companies such as Amazon - which has lower profit margins than other tech
firms - do not escape the net.

 

“All of them, and without exception” must be covered by the new rules,
German finance minister Olaf Scholz told Reuters.

 

Daniel Bunn, an expert on global taxation at Washington's Tax Foundation
think tank, said this was likely to lead to more complex regulation.

 

"A lot of those rules are going to be, I think, politically based rather
than principles-based," he said.

 

Some large companies might even be incentivised to acquire less profitable
subsidiaries to reduce their overall profit margin and dodge the new tax, he
added.

 

Climate change is the other main point on the agenda. Britain hosts the
United Nations' COP climate summit in Glasgow in November, and wants
countries to make businesses report their environmental impact in a
consistent way, to make it easier for investors to back green projects.

 

British businesses will have to follow an environmental reporting model set
out by the Financial Stability Board, a global regulator, from 2022. French
businesses have followed similar national guidelines since 2016.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

South Africa: Final Nail in the Coffin for Proposed Khanyisa Coal Power
Station - Approval for Another New Coal-Fired Power Station Has Been Set
Aside By the High Court

Mpumalanga is home to a cluster of twelve coal-fired power plants with a
total capacity of over 32 gigawatts owned and operated by Eskom. The
satellite data further reveals that the cities of Johannesburg and Pretoria
are also highly affected by extreme NO2 pollution levels which blow across
from Mpumalanga and into both cities due to close proximity and regular
eastwinds.

 

The court order is effectively the final nail in the coffin for the proposed
coal plant - backed by Saudi company ACWA Power - which has met countless
legal and other hurdles since its inception.

 

The ruling came as a result of a legal challenge to the project's
environmental authorisation by environmental justice group groundWork,
represented by the Centre for Environmental Rights. groundWork launched the
litigation against ACWA Power, to challenge the project, in the Pretoria
High Court in 2017. It sought to set aside the environmental approval for
the plant on the basis that ACWA Power failed adequately to assess the
project's climate change impacts, and that the Environment Minister (the
late Minister Edna Molewa) failed to consider climate change impacts before
approving the project.

 

Stopping the Khanyisa coal power station project means that:

 

75,9 million tonnes of carbon dioxide equivalent climate changing greenhouse
gas (GHG) emissions will never be emitted into the atmosphere;

significant air pollution that would have harmed the lives and health of
residents of the already severely polluted eMalahleni area has been avoided;

 

The pollution from the proposed toxic coal ash dump, the size of 140ha, will
never leak into the Olifants Catchment, and negatively impact the important
water source and livelihood for 4.2 million who rely on the catchment for
their basic needs, fishing, farming, day to day use, spiritual and
recreational practices; and

 

the South African public has been spared from unnecessary expenditure of 73
billion in comparison to a least cost electricity system (which is renewable
and flexible, and has no new coal).[1]

 

This litigation followed the 2017 landmark Thabametsi court judgment which
set a precedent confirming that climate change impacts must be assessed and
considered as part of the legally-required environmental impact assessment
(EIA) process.

During the course of the litigation, it came to light that Khanyisa had not
complied with the conditions of its environmental authorisation, and that
its authorisation had lapsed in October 2018. The Department of Forestry,
Fisheries and Environment (DFFE) agreed that Khanyisa's environmental
authorisation had lapsed. ACWA, however, persisted with its position that
its authorisation was still valid, but did not file answering papers in the
litigation to address this. The matter therefore proceeded before the judge
on an unopposed basis.

 

ACWA Power's Khanyisa coal plant was appointed as one of two preferred
bidders under South Africa's first bid window for the Coal Baseload
Independent Power Producer Procurement Programme under a 2012 Ministerial
Determination that called for 2500 MW of baseload coal. The other appointed
preferred bidder, Thabametsi, withdrew its preferred bidder appointment in
late 2020, and had its environmental authorisation set aside by the Pretoria
High Court in December 2020.

The Khanyisa private coal power project has faced multiple challenges. On 21
July 2020, the power station's water use licence (WUL) was set aside by the
Water Tribunal for the failure to conduct adequate public participation. The
ruling confirmed, for the first time, that climate change is a legal
requirement that must be considered when deciding whether or not a WUL
application should be granted to a coal-fired power station. The Water
Tribunal acknowledged that the Department of Water and Sanitation (DWS) had
failed to properly consider the climate change impacts, and, if it had, it
would not have concluded that the Khanyisa project would be an efficient and
beneficial use of water in the public interest - as is legally required -
even if such projects may be technically feasible.

 

Due to pressure from environmental groups, private banks such as Standard
Bank, FirstRand, Nedbank and Absa eventually agreed to withdraw from funding
Khanyisa, and Thabametsi.

 

Without a valid environmental authorisation or a water use licence, ACWA
cannot legally commence building the power plant.

 

Communities in the Highveld - where this plant would have been based - have
been fighting for their right to breathe clean air, with the "Deadly Air"
litigation launched against the state by groundWork and the Vukani
Environmental Justice Movement (VEM) heard in the Pretoria High Court on 17
and 18 May 2021.

 

There are already 12 polluting coal-fired power stations in the Highveld, in
addition to Sasol's coal-to-liquids plant in Secunda, and the NatRef
refinery in Sasolburg. These 14 facilities contribute to the majority of the
air pollution in the Highveld. "The high levels of toxic air in the
Mpumalanga Highveld are a scourge that impact people's health on a daily
basis. Had Khanyisa been able to proceed, it would have exacerbated the
already toxic air pollution in the Highveld, impacted negatively on the
people's health and their lives in the surrounding communities and further
exposing school kids in the nearby Landau school to dangerous level of toxic
emissions from the plant and ash We simply can't have more coal plants in
the Highveld" says Thomas Mnguni, campaigner at groundWork.

 

"The successful legal challenges against the Khanyisa project are further
testimony to the strength of public interest litigation and civil society
opposition in opposing dangerous and risky new coal projects. Our courts
will uphold the requirement for regulatory approvals to meet the
requirements of the Constitution and the Bill of Rights," says CER attorney
Michelle Koyama. None of the proposed coal projects that were appointed
preferred bidders under the coal baseload IPP programme were able to reach
commercial and financial close. An additional proposed coal project - the
KiPower coal power station - also challenged through litigation by
groundWork, has also had its environmental authorisation lapse.

 

Although government still persists with its plans for new coal under the IRP
2019, the writing is on the wall insofar as new coal projects are concerned.
A recent report by the International Energy Agency titled 'Net Zero by 2050:
a Roadmap for the Global Energy Sector', adds to the growing voices of the
scientific and economic community - there can be no investment in new fossil
fuel supply projects, and no investment decisions for new unabated coal
plants.-groundWork.

 

 

Kenya: Italian Firms Cite Kenyatta-Ruto Power Fights in Botched Dams Tender

Three Italian firms at the centre of the Sh63 billion Kimwarer and Arror
dams scandal have claimed that power struggles between President Uhuru
Kenyatta and his Deputy William Ruto led to the illegal cancellation of the
projects.

 

In filings before the International Court of Arbitration, Cooperativa
Muratori & Cementisti - CMC Di Ravenna Societa Cooperativa (Italy), Itinera
S.P.A and CMC Di Ravanna- Itinera JV S.C.P.A alleged that the tender for the
construction of the two dams was cancelled to derail Dr Ruto's quest for the
presidency in the 2022 general elections.

 

The firms quoted Press reports, saying Mr Ruto has been a vocal supporter of
the projects because it would benefit people in his backyard.

 

"Claimants find confirmation that they fell victim of a political struggle
for power between the president, Mr Uhuru Kenyatta, and his Deputy
President, Mr William Ruto, the latter being a vocal supporter of the
projects... While the two belong to the same party, Mr Ruto is expected to
run in the 2022 presidential elections and challenge Mr Kenyatta's faction,"
reads the court papers.

"It seems hardly coincidental that the highest-ranking official to be
investigated and charged in the criminal proceedings is Kenya's Treasury
Cabinet Secretary, Mr Henry Rotich, an ally of Mr Ruto," states the court
document.

 

Mr Rotich was recently charged afresh together with former Kerio Valley
Development Authority (KVDA) managing director David Kimosop, Kennedy
Nyakundi (chief economist- Treasury), Jackson Njau Kinyanjui (director of
resource mobilisation- Treasury) and Mr Titus Muriithi, the inspector
general of State corporations.

 

The prosecution dropped 18 Italians who own the companies from the case and
intends to charge them separately.

 

The Italian firms said based on Press reports, they can confirm that they
fell victim of a political struggle between President Kenyatta and Dr Ruto.

"The above explains how and why a joint venture of respected world class
engineering and construction companies, with an impressive track record of
major works world-wide was entangled in criminal proceedings in Kenya,
charged with conspiring with no less a State entity (KVDA), a Kenyan
ministry (Treasury) and possible even with international first-rate banks
and Italian credit agency," the firms state.

 

Projects were politicised

 

The Italian firms said it was not until 2019, two years after the conclusion
of the contracts, that investigations pointed at a number of alleged
illegalities in connection with the projects.

 

They maintained that they were not involved in any irregularity and all that
they did was to tender for the two contracts in compliance with the tender
instructions issued by the KVDA.

 

They claim that KVDA has admitted that the projects were politicised with an
intention of terminating them to the disadvantage of the communities, an
indication that the allegations of irregularity may well be just an element
of this political battle.

They said although they had no role in procuring the loans, the projects
complied with all the laws and tender requirements and the advance payments
received from the KVDA were put into proper use including mobilisation
purposes and for the needs of the contracts in accordance with KVDA's
requests at the time of events.

 

The Italian firms sued Kenya before the international court last December,
demanding more than Sh11 billion for cancelling the contracts.

 

"Accordingly, order KVDA to pay the claimants all the amounts provisionally
indicated as US$114,177,645, or any other different sum that will result due
to claimants in the course of the proceedings, plus interest as applicable,"
say the court papers.

 

The Director of Public Prosecutions (DPP) has accused Mr Rotich of hiding
behind government-to-government procurement to single source privately owned
Italian Insurance company SACE (an Italian export credit agency offering
insurance) policy valued at Sh11 billion, an amount that was allegedly
inflated by more than 400 percent.

 

Advance payments

 

Evidence presented in court by the prosecution allege that CMC Di Ravenna-
Itinera JV was paid Sh4.3 billion on September 27, 2018 as advance payment
for Arror dam.

 

For Kimwarer dam, an advance payment of Sh3.5 billion was allegedly approved
on July 2, 2018.

 

The payments in two tranches were made to a web of associated companies in
Kenya, South Africa and Italy that were not on tender documents, according
to the DPP.

 

The bidder, according to court documents, was Cooperativa Muratori &
Cementisi CMC Ravenna- Societa Cooperativa.

 

They declared a joint venture known as Aecom South Africa PTY Ltd but the
company that was issued with the letter of award was CMC Di Ravenna South
Africa while payments were made to CMC Di Ravena/Itinera JV Kenya Branch.

 

Mr Rotich has challenged his prosecution, questioning why former Environment
and Regional Development Cabinet Secretary Judi Wakhungu and experts from
the ministry were left out. He said he signed the agreements at the tail end
as part of his statutory responsibilities.

 

The DPP dropped charges against former Treasury Principal Secretary (PS)
Kamau Thugge and Susan Koech, a former PS in the Environment ministry, and
plans to use them as witnesses in the trial against Mr Rotich.-Nation.

 

 

Nigeria: Buhari to Launch 12-Month Job Fellowship for 20,000 Graduates
Annually

Backers of the scheme include EU, Dangote, Visa, BUA, Lafarge, Microsoft and
co, Vice President Osinbajo says.

 

In addition to employment opportunities created through the Economic
Sustainability Plan and job schemes being implemented under the Social
Investment Programme, among others, the Buhari administration in
collaboration with the United Nations Development Programme and other
private sector partners is set to launch a 20,000 yearly graduate job
fellowship to be called the Nigeria Jubilee Fellows Programme, NJFP.

 

Speaking Wednesday while making the formal announcement, Vice President Yemi
Osinbajo said the 12-month job fellowship programme would be launched very
soon by President Muhammadu Buhari.

 

According to the Vice President "we are looking forward to the President
formally launching the programme very shortly."

 

He said that "as we prepare for the formal launch of the programme by Mr
President, I urge private sector leaders and captains of industry,
development partners and the diplomatic community, to support this programme
aimed at equipping young Nigerians with skills and experience required for
the work place."

 

Under the initiative, internship opportunities will be created for young
Nigerians who have recently concluded the National Youth Service Corps
(NYSC) programme. The fully-paid internships will last for 12 months and
will be in reputable private and public sector organizations across the
country.

 

Mr Osinbajo said the NJFP "is in very good company, a new and bold addition
to an existing suite of large-scale, big-impact programmes that will rewrite
the narrative as it relates to jobs, skills and employment in Nigeria."

 

According to the VP, "we are resolute in our determination to make the
needed difference, and rebuild the confidence of our young people in the
ability of their government to rise to the occasion and guarantee a future
that is better and more prosperous than the past."

The Vice President noted that "our ongoing efforts include the N-Power
Scheme, which recruits young graduates and places them in agricultural,
health and education intervention schemes in local communities around the
country. N-Power also has a non-graduate scheme focused on technical skills
and IT education. The President has approved the expansion of the N-Power
programme from 500,000 beneficiaries to one million.

 

"We have also established a N75 billion Youth Fund in the Ministry of Youth
and Sports to provide credit and support for young entrepreneurs and
professionals."

 

Mr Osinbajo added that there is also the $500 million African Development
Bank Technology and Innovation Fund which the AFDB's Ag. Senior Director,
Lamin Barrow, also mentioned at the event.

 

"Also under our Economic Sustainability Plan (ESP), designed to protect
existing jobs, create new ones, and promote local production, our
agricultural, housing and solar power programmes already employ and will
employ tens of thousands of people to ensure food security, and deliver
affordable homes and new power connections."

Stating the support of the United Nations for the programme, the Resident
Coordinator of the United Nations Systems in Nigeria, Edward Kallon, said
the launch and eventual implementation of the scheme would redefine the
future of Nigeria.

 

According to him, "having a population of 41 million young people
constituting 30% of the youth population in Africa, empowering young
Nigerians will be key in the actualisation of a better future for Africa."

 

His words: "The Jubilee Fellows Programme will champion homegrown Nigerian
talents and opportunities. It will connect inspiring young Nigerians with
local opportunities that will apply their expertise, while equipping them
with world-class practical knowledge.

 

"The Nigeria Jubilee Fellows Programme will bridge the gap between graduates
and industry. Through this programme, private sector entities, startups and
key public sector institutions will be connected directly to graduates to
find the best young talent that Nigeria has to offer. Graduates will be able
to better understand the needs, challenges and realities that industries
broadly face, and learn how best to contribute to address them."

 

Commending the leadership provided by the VP, Mr Kallon said "what you are
supporting today will lead to a bright future for Nigeria, and will outlive
your administration. If there is a viable investment development partners
will make in Nigeria, this is the one that is dearest to them and in which
they will surely support."

 

On his part, the representative of the EU at the event, Ketil Karlsen,
pledged the support of the organization for the programme, affirming the
EU's confidence in the Nigerian youth.

 

Private sector partners of the programme include, BUA, Dangote, VISA
Nigeria, Outsource Global, GE Gas and Power, Lafarge Africa, SecureID,
Microsoft, among others.-Premium Times.

 

 

Tunisia: Utica - Tunisian-French Economic Meeting, Kicks Off

Tunis/Tunisia — The Tunisian-French economic meeting kicked off works on
Thursday at the Tunisian Confederation of Industry, Trade and Handicrafts
(UTICA) seat, under the theme: "Tunisian-French partnership for a regional
innovation platform."

 

Several members of the Tunisian and French governments are present at this
event, which will be closed by French Prime Minister Jean Castex, who is on
a two-day official visit to Tunisia.

 

During his welcoming speech, UTICA Vice-President and Co-Chairman of the
France-Tunisia Business Council Hichem Elloumi recalled that France is
Tunisia's leading economic partner with a total of 1,500 enterprises and
over 150,000 jobs.

 

France is also the first trade partner with 20% of exchanges and 26% of
exports, he indicated.

 

The official underlined the need to further step up the partnership between
the two countries, recalling that Tunisia boasts of internationally
recognised competences in industry and value-added services (aeronautics,
automobile, electronics, etc.) and digital technology.

 

He added in this regard, that technology and international development is
one of the major challenges to be met under this strategic partnership
between the two countries.

 

Referring to the global health crisis related to the COVID-19 pandemic,
Elloumi affirmed that the acceleration of vaccination campaigns would allow
enterprises to relatively resume their activities after a strong instability
leading in some cases to the total shutdown.-Tunis Afrique Presse.

 

 

 

Zambia: Do More to Prepare Zambia for AfCFTA

More effort should be made to prepare the economy for Zambia's participation
in the African Continental Free Trade Area (AfCFTA) which has been in place
since January this year.

 

There is need to come up with an export-driven strategy that will encourage
the manufacturing sector to participate effectively in the yearning
continental market.

 

Being a land-linked market, Zambia can benefit effectively from the expanded
marketplace under the AfCFTA if producers of goods and services in the
economy grabbed the opportunity by upping production.

 

Issues to do with lack of quality branding and packaging of locally-produced
goods should be resolved through a multi-sectoral approach.

The Zambia Development Agency (ZDA) should as a matter of urgency work with
the Zambia Association of Manufacturers (ZAM) to devise strategies that will
boost manufacturing of export-oriented goods.

 

As more countries join the one Africa market, it is important that
stakeholders use the country's raw material potential and upscale the
manufacturing sector ready to participate in the AfCFTA.

 

Should we fail to strategically grab this opportunity of export tariff
liberalisation; the country will be a dumping ground for substandard
subsided goods that will deteriorate the economy in the medium to long term.

 

The country should look at its comparative advantage at regional and
continental levels so as to tap into the huge potential of this
continentally- liberalised market.

 

ZDA should ensure that necessary investments in agro processing as it works
on developing an export strategy that will ensure local companies enhance
their exports into the continental market are attracted.

With the country producing a record 411,115 tonnes of soya beans in the
2020/2021 farming season compared to 296,686 tonnes in the previous season
translating into a 67-per cent increase, soya bean processing plants can
earn the country more.

 

Yesterday, ZDA director - exports and development Albert Halwampa said the
premium investment promoter has come up with the strategy to drive the
country's exports into the AfCFTA markets which is encouraging.

 

We note that the key objectives of the strategy is to increase and promote
the value of Non-Traditional Exports (NTEs) of which are heightened in the
AfCFTA and Zambia's nine neighbouring markets.

 

We agree with Mr Hamwampa on his observation that export development is key
in developing the value chain and Small and Medium Enterprises (SMEs) while
taking them into markets.

 

But that can only be achieved if SMEs have necessary capacity to produce
competitive goods that can satisfy the expanded market while broadening
access to financing for this important segment.

 

It is heartening, though, to note that ZDA is currently training staff who
have been tasked with the responsibility of ensuring that the implementation
of the strategy is successful.

 

An aggressive approach towards boosting the NTEs so as to benefit
effectively from the AfCFTA market is the best way to go.- Times of Zambia.

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Blog:
<https://bullszimbabwe.com/category/blogs/bullish-thoughts/>
www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

Dairibord

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


(c) 2021 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210604/7f62832e/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210604/7f62832e/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 31039 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210604/7f62832e/attachment-0002.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.png
Type: image/png
Size: 222821 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210604/7f62832e/attachment-0004.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210604/7f62832e/attachment-0005.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 22328 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210604/7f62832e/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65563 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210604/7f62832e/attachment-0001.obj>