Major International Business Headlines Brief::: 09 June 2021

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Major International Business Headlines Brief::: 09 June 2021

 


 

 


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

 


 

 


ü  Tax details of US super-rich allegedly leaked

ü  Travel: US eases travel rules for 61 countries - but not UK

ü  Biden strike force to target 'unfair' trade

ü  Colonial Pipeline boss 'deeply sorry' for cyber attack

ü  iOS15: China exempt from Apple 'private relay' privacy feature

ü  Brexit: EU warns UK over Irish Sea border goods checks

ü  Banks tested on climate crisis risks

ü  Covid in Scotland: Soft play owners plan legal bid to allow reopening

ü  Las Vegas Sands faces $12 billion claim in Macau court

ü  U.S. Senate passes bill to raise fees on biggest mergers

ü  U.S. investigates disclosure of tax records on rich Americans

ü  China's May factory gate prices rise at fastest pace in over 12 years

ü  Africa: Airline Sector in Africa Soaks Up $10b Loss

ü  East Africa: Kenya and EAC Sued Over $2.34 Billion IMF Loan

ü  Namibia: Oil Driller Announces Petroleum System At Second Well

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Tax details of US super-rich allegedly leaked

Details claiming to reveal how little income tax US billionaires pay have
been leaked to a news website.

 

ProPublica says it has seen the tax returns of some of the world's richest
people, including Jeff Bezos, Elon Musk and Warren Buffett.

 

The website alleges Amazon's Mr Bezos paid no tax in 2007 and 2011, while
Tesla's Mr Musk paid nothing in 2018.

 

A White House spokeswoman called the leak "illegal", and the FBI and tax
authorities are investigating.

 

ProPublica said it was analysing what it called a "vast trove of Internal
Revenue Service data" on the taxes of the billionaires, and would release
further details over coming weeks.

 

While the BBC has not been able to confirm the claims, the alleged leak
comes at a time of growing debate about the amount of tax paid by the
wealthy and widening inequality.

 

ProPublica said the richest 25 Americans pay less in tax - an average of
15.8% of adjusted gross income - than most mainstream US workers.

 

Biden plans

The website said that "using perfectly legal tax strategies, many of the
uber-rich are able to shrink their federal tax bills to nothing or close to
it" even as their wealth soared over the past few years.

 

The wealthy, as with many ordinary citizens, are able to reduce their income
tax bills via such things as charitable donations and drawing money from
investment income rather wage income.

 

ProPublica, using data collected by Forbes magazine, said the wealth of the
25 richest Americans collectively jumped by $401bn from 2014 to 2018 - but
they paid $13.6bn in income tax over those years.

 

President Joe Biden has vowed to increase tax on the richest Americans as
part of a mission to improve equality and raise money for his massive
infrastructure investment programme.

 

He wants to raise the top rate of tax, double the tax on what high earners
make from investments, and change inheritance tax.

 

However, ProPublica's analysis concluded: "While some wealthy Americans,
such as hedge fund managers, would pay more taxes under the current Biden
administration proposals, the vast majority of the top 25 would see little
change."

 

One of the billionaires mentioned, the philanthropist George Soros, is also
alleged to have paid minimal tax. His office had not replied to a BBC
request for comment, but said in a statement to ProPublica that Mr Soros did
not owe tax some years because of losses on investments.

 

The statement also pointed out that he had long supported higher taxes on
America's wealthiest people.

 

'Illegal'

According to reports in the US, Michael Bloomberg, a former mayor of New
York whose tax details were among the documents, said the disclosure raised
privacy concerns and he would use "legal means" to uncover the source of the
leak.

 

ProPublica, an investigative website, has written several articles about how
budget cuts at the US Internal Revenue Service have hampered its ability to
enforce tax rules on the wealthy and large corporations. The news
organisation said it received the leaked documents in response to these
articles.

 

White House Press Secretary Jen Psaki said that "any unauthorized disclosure
of confidential government information" is illegal.

 

Treasury Department spokeswoman Lily Adams said in an emailed statement to
Reuters that the matter has been referred to the FBI, federal prosecutors
and two internal Treasury Department watchdogs, "all of whom have
independent authority to investigate."

 

US Internal Revenue Service Commissioner Charles Rettig said: "I can't speak
to anything with respect to specific taxpayers. I can confirm that there is
an investigation, with respect to the allegations that the source of the
information in that article came from the Internal Revenue Service."—BBC

 

 

Travel: US eases travel rules for 61 countries - but not UK

The US has eased travel restrictions for many countries as the roll-out of
coronavirus vaccines continues.

 

Its public health agency updated its criteria on Monday, which saw 61
countries lowered from a Level 4 "avoid all travel" rating.

 

Countries such as France, Spain and Italy are now Level 3, which means
fully-vaccinated passengers may go to these areas.

 

But most passengers from the UK are still banned from travelling to the US.

 

Although the UK is listed as a Level 3 by the US Centers for Disease Control
and Prevention (CDC), under a presidential decree introduced last March,
non-US citizens who have been in the UK in the last 14 days cannot enter the
country unless a specific exemption applies.

 

Meanwhile, travellers from the US to the UK must self-isolate for 10 days on
arrival as the country is on the "amber list".

 

The US Centers for Disease Control and Prevention said that it had updated
its criteria to "better differentiate countries with severe outbreak
situations from countries with sustained, but controlled, Covid-19 spread."

 

The CDC said the new criteria for a Level 4 "avoid all travel"
recommendation has changed from 100 cases per 100,000 to 500 cases per
100,000.

 

Other countries that saw their ratings lowered include:

 

·         Ecuador

·         Philippines

·         South Africa

·         Canada

·         Mexico

·         Russia

·         Switzerland

·         Jordan

·         Denmark

·         Turkey

·         Ukraine

·         Honduras

·         Hungary

Japan also saw its travel rating lowered to allow vaccinated passengers to
travel in the run-up to the Tokyo Olympics in late July. On 24 May, the
State Department had issued a warning against the country, citing a new wave
of Covid-19 cases.

 

The CDC said it also expects more countries to get lower ratings in the
coming weeks.

 

What's happening with foreign travel?

Holidays on the amber list - what you need to know

It comes after the bosses of all airlines that offer UK-US flights and
Heathrow Airport issued a joint call for a trans-Atlantic travel "corridor"
on Monday.

 

The group said it would be "essential to igniting economic recovery" in a
statement and urged Prime Minister Boris Johnson and President Joe Biden to
discuss the possibility at the upcoming G7 meeting.

 

Shai Weiss, the boss of Virgin Atlantic, said on Monday: "There is no reason
for the US to be absent from the UK green list. This overly cautious
approach fails to reap the benefits of the successful vaccination programmes
in both the UK and the US."

 

Adding the US to the green list would remove the need for quarantine on
return to the UK. Passengers would, however, still need to have proof of a
negative Covid test result on departure.

 

"Customers, families and businesses need to book and travel with confidence.
After 15 months of restrictions, the time to act is now," Mr Weiss
added.-BBC

 

 

 

Biden strike force to target 'unfair' trade

The US will set up a new "strike force" to target what it calls "unfair
trade practices" by competitors like China.

 

The Biden administration said on Tuesday the new body will look for
violations of rules, which it says have damaged global supply chains.

 

In a statement it said it would "push back on unfair foreign competition
that erodes the resilience of US critical supply chains".

 

It comes after a review of supplies of products such as computer chips.

 

President Joe Biden ordered the review in February, asking government
agencies to report on the country's access to essential goods like rare
earth materials used in phones and electric vehicle batteries.

 

Led by the US Trade Representative, the new "strike force" will look for
trade rules that have been broken and come up with ways to counter that.

 

Supply chain disruption

The US, like many other countries, faced difficulties getting medical
equipment during the pandemic and faces disruption in a number of areas -
such as a computer chip shortage and stalling car production.

 

Following on from the review, the US Department of Commerce is also
considering starting an investigation into the national security impact of
neodymium magnet imports, mostly sourced from China, which are used in
motors and in defence.

 

Many firms have seen production delayed because of a lack of computer chips
available.

 

The shortage has been exacerbated by surging demand for TVs, phones and
gaming consoles, which all use semiconductor chips, while consumers were
stuck at home.

 

Bosses of big firms such as IBM and Cisco have estimated disruption could
last up to two years.

 

As part of the review, a number of measures were announced in a bid to
counteract reliance on goods from outside the US.

 

The Energy Department will provide about $17bn (£12bn) in loans for advanced
batteries to accelerate the shift towards electric cars and the Agriculture
Department will spend more than $4tn to strengthen food supply chains.

 

The Biden administration said on Tuesday: "These efforts are critical
because, as the Covid-19 pandemic and resulting economic crisis have shown,
structural weakness in both domestic and international supply chains
threaten America's economic and national security."—BBC

 

 

Colonial Pipeline boss 'deeply sorry' for cyber attack

The boss of Colonial Pipeline has apologised after a cyber attack took the
US fuel pipeline offline last month, causing major disruption.

 

Joseph Blount said: "We are deeply sorry for the impact that this attack
had."

 

Mr Blount also told Senators the decision to pay a $4.4m (£3.1m) ransom to
hackers in Bitcoin was the "hardest decision" in his career.

 

The US has since recovered 63.7 of the Bitcoin, worth $2.3m.

 

The President and chief executive of Colonial Pipeline said in front of the
Senate Homeland Security and Governmental Affairs Committee that he was also
"heartened by the resilience of our country and our company".

 

Cyber criminal gang DarkSide - which US authorities said operates from
eastern Europe and possibly Russia - infiltrated the pipeline last month. It
carries 45% of the East Coast's supply of diesel, petrol and jet fuel,
Colonial Pipeline says.

 

The attack disrupted supplies for several days causing fuel shortages and
queues at pumps in states such as Georgia, North Carolina and South
Carolina.

 

Mr Blount said on Tuesday that the decision to pay the ransom was taken the
day after the attack first took place on 7 May.

 

The FBI recommends that companies do not pay criminals over ransomware
attacks, in case they invite further hacks in the future.

 

"I made the decision to pay and I made the decision to keep the information
about the payment as confidential as possible," he said.

 

"I believe with all my heart it was the right choice to make
 but I want to
respect those who see this issue differently," Mr Blount added.

 

He told senators that he felt paying the ransom was necessary to bring the
pipeline back online as quickly as possible.

 

Once Colonial made a cryptocurrency payment, the company received a
decryption tool so it could unlock the systems compromised by the hackers -
although that was not enough to restart systems immediately.

 

"What a lot of people don't realise is it takes months and months
 even
years to restore your systems," Mr Blount said.

 

Although the "critical infrastructure" of the pipeline was back online
within days, seven finance systems used by the firm were only restored this
week, he said.

 

Some politicians also questioned the security measures the firm had in
place.

 

Senator Margaret Hassan, of New Hampshire, said: "I don't think it's
acceptable to understand the critical nature of your product, but not have
the preparation or system in place to protect it as though it's critical
infrastructure."

 

Hackers were able to get into the company's IT systems using a virtual
private network (VPN) account, an encrypted internet connection that allowed
employees to access its networks remotely.

 

Mr Blount said this was a "legacy" VPN that was not in use at the time,
although it did not have two-step authentication in place.

 

He said the password that was compromised was not a simplistic
"Colonial123-type password".

 

"We often take a look at our defences, and even though we felt comfortably
historically
 this threat grows every day and the sophistication of this
threat grow every day", he said.-BBC

 

 

iOS15: China exempt from Apple 'private relay' privacy feature

Apple has announced a raft of new privacy protections at its annual software
developer conference.

 

They include a function called "private relay", where users' web browsing
behaviour can be hidden from Apple, internet providers and advertisers.

 

Apple has been under pressure to cut down on the tracking of user data.

 

However, the feature will not be available to users in China, one of its
most important markets, due to regulatory reasons.

 

It's the latest compromise that the tech giant has made on privacy in China,
where 15% of its revenue comes from.

 

The Internet is closely controlled in China, which also employs an extensive
surveillance system on its residents.

 

The function will also not be available in several other countries,
including Saudi Arabia and Belarus.

 

How does 'private relay' work?

Apple says the feature sends traffic to a server maintained by Apple, where
a piece of information called its IP address will be removed.

 

>From there, it goes to a second server operated by a third party, where it
will be given a temporary IP address and sent onto the destination website.

 

Apple says the use of an outside party means "no single entity can identify
both who a user is and which sites they visit".

 

Experts say the function will prevent advertisers from using IP addresses to
pinpoint a person's location too.

 

Apple did not immediately respond to a request for more information on the
regulatory issues involved.

 

But it did say the relay service will not be available in Belarus, Colombia,
Egypt, Kazakhstan, Saudi Arabia, South Africa, Turkmenistan, Uganda and the
Philippines as well as China.

 

The feature will likely become available in other markets later this year.

 

Apple also announced a number of new privacy features included in the latest
iPhone operating system, iOS 15.

 

Users will be able to track which apps are collecting data and some apps
like Mail will hide IP addresses in order to block tracking.

 

The new features are likely to hinder social media companies like Facebook,
Google and Twitter as customised advertising based on user data is central
to their business model.--BBC

 

 

Brexit: EU warns UK over Irish Sea border goods checks

The EU has warned the UK not to take any further unilateral action to delay
post-Brexit checks on products entering Northern Ireland from Britain.

 

The warning came from the European Commission's vice president.

 

Maros Sefcovic said the EU "will not be shy in reacting swiftly, firmly and
resolutely to ensure that the UK abides by its international law
obligations".

 

It comes as the two sides prepare to meet to assess possible simplifications
of the Northern Ireland Protocol.

 

The protocol is the part of the Brexit deal that created a trade border in
the Irish Sea, in order to prevent goods checks along the Irish land border.

 

Why is there a UK-EU row over sausages?

The 2019 deal kept Northern Ireland in the EU single market for goods and
means EU customs rules are now enforced at its ports.

 

It was agreed that the checks would be phased in through the use of
so-called "grace periods".

 

But earlier this year the UK unilaterally extended and enhanced some of
these grace periods.

 

The EU started legal action as a result.

 

'Bonkers'

The next phase of new controls, affecting chilled meat products like
sausages and mince, are due to begin next month after the grace period
overseeing them ends.

 

By 1 July, the products will be prohibited from moving from Great Britain to
Northern Ireland, or the grace period will be extended either by agreement
or unilaterally by the UK.

 

In an article for the Daily Telegraph newspaper, Mr Sefcovic writes: 'If the
UK takes further unilateral action over the coming weeks, the EU will not be
shy in reacting swiftly, firmly and resolutely to ensure that the UK abides
by its international law obligations."

 

The sausage and the chicken nugget have long enjoyed the right to roam
around the UK; their legal passage from Great Britain to Northern Ireland
assured.

 

But this is due to end in a little over three weeks.

 

The Brexit deal included an agreement that some products would be checked
within the UK - when moved from Britain to Northern Ireland - as an
alternative to a hard border with the Republic.

 

And the movement of some goods, including chilled meats, would be banned,
albeit after a grace period - that expires at the end of this month.

 

The government regards the prospect of blocking the free movement of the
sausage within the UK as ridiculous and has claimed the European Union is
acting with what it called "legal purism".

 

The EU is threatening to act "swiftly, firmly and resolutely" to ensure the
UK abides by its "obligations under international law" as Brussels sees
them.

 

The British government agreed to the protocol in late 2019 but there have
been some problems since it came into operation in January this year, and
the UK is now seeking changes.

 

George Eustice, the UK's Agriculture Minister, described the chilled meats
issue as "bonkers" on Radio 4's Today programme on Tuesday.

 

On Monday, the UK's Brexit Minister Lord Frost admitted the UK had
"underestimated" the effect of the protocol on goods movements to Northern
Ireland.

 

In an article in the Financial Times, he accused the EU of "legal purism"
and called for "pragmatic solutions between friends, not the imposition of
one side's rules on the other".

 

Access to medicines

However, in his Daily Telegraph article on Tuesday, Mr Sefcovic denied that
the EU had been intransigent over the protocol.

 

"Far from being inflexible, the EU has shown from the very beginning that we
are willing to find creative solutions when required," the European
Commission vice president wrote.

 

"The continued availability of medicines to Northern Ireland is among those
tailor-made flexible solutions - something I personally take very seriously
in this time of pandemic."

 

Mr Sefcovic added that the EU team was "working hard to find ways to ensure
that the protocol is implemented in a way that both facilitates the everyday
life of Northern Ireland's communities and preserves the integrity of the
EU's Single Market".

 

He stressed the need for UK-EU cooperation to implement the existing 2019
deal, saying "we should not waste time turning the tables and washing our
hands of an agreement that we shaped, agreed and signed jointly".

 

EU concessions

The EU-UK Joint Committee is due to meet in London on Wednesday to review
progress on technical talks that have been examining ways to simplify the
Northern Ireland Protocol.

 

Officials have been holding intensive talks, but there is little expectation
of a major breakthrough at the meeting.

 

It is understood UK officials believe there has been significant progress in
only two of about 30 problem areas and each side has accused the other of a
lack of real engagement

 

However, the EU is preparing to offer a number of concessions, that would
include:

 

Ensuring "uninterrupted supply" for medicines destined for Northern Ireland
that have been authorised by the UK

Flexibility on steel quotas and tariffs which have affected Northern Ireland
in a way that was "not anticipated in the protocol"

A pet passport exemption for guide dogs entering Northern Ireland from Great
Britain

An easing of livestock rules to avoid "multiple tagging"

But an EU official said the EU's patience with the UK was "wearing thin" and
warned that there could be trade sanctions if there is no breakthrough on
implementing the protocol by next month.

 

'Solutions needed'

Ahead of Wednesday's meeting, Northern Ireland business groups urged the UK
and EU to find "immediate solutions" to Irish Sea border trading problems.

 

"We cannot afford another missed opportunity at the joint committee," said
the Northern Ireland Business Brexit Working Group - a coalition of
organisations and companies.

 

"We continue to hear that the EU and UK are committed to their assertion in
the preamble to the protocol that they are 'determined that the application
of this protocol should impact as little as possible on the everyday life of
communities in both Ireland and Northern Ireland'.

 

"But it undoubtedly is having an impact and will increasingly do so as more
stringent requirements come in from October."

 

It added: "We are heartened by the increased level of engagement that we
have had in the past few weeks and months, however, we need to see that our
faith in this process is justified by the delivery of solutions."

 

The working group added that there will be opportunities under the protocol,
given the access it gives to both the UK and EU markets, but trade frictions
need to be removed for the economy as a whole.

 

Government 'knew NI Protocol was bad deal'

Can sea border ‘teething problems’ be solved?

Meanwhile, the Northern Ireland trade union representative body, NIC ICTU,
said "a space has to be created that acknowledges the practical problems
with the protocol while also respecting the integrity of EU single market".

 

It added that it is "not acceptable or credible that those who demanded a
hard Brexit now say the 'protocol must go!' This simplistic rhetoric
misleads and abuses the electorate and encourages division."

 

But it said: "The concerns of many within the unionist community around the
practical issues with the protocol need to be respected, considered and
addressed."-BBC

 

 

Banks tested on climate crisis risks

Britain's banks and insurers will be tested on how well-prepared they are to
cope with climate change emergencies.

 

The Bank of England will examine the risks rising temperatures and sea
levels could pose for the UK's big banks and insurers.

 

It will put 19 firms through stress tests involving three climate scenarios
projected over the next 30 years.

 

The Bank said the tests will help it "understand the risks presented by
climate change" to the economy.

 

Banks will be tested for the first time and assessed on their credit books.

 

They were due to be tested last year but the Bank of England put the process
on hold during the pandemic.

 

Insurers will be assessed on the risks to their assets and liabilities, but
were tested last year.

 

"This is the first time we are testing both banks and insurers to allow us
to capture interactions between them," the Bank said.

 

"The end result will be more robust management of climate related financial
risks across the sector," said Andrew Bailey the Governor of the Bank of
England.

 

It will examine banks such as Barclays, HSBC, Lloyds, Nationwide, NatWest,
Santander UK and Standard Chartered as well as insurers including Aviva,
Legal & General, Direct Line, and Scottish Widows.

 

The results of the tests will be published by May 2022 although the Bank
said it will release only aggregate results and not identify individual
businesses.

 

'Fiendishly complicated'

The stress tests will put the banks and insurers through three climate
scenarios.

 

The worst-case is based on governments failing to take any further steps to
curb greenhouse gas emissions, resulting in average temperature increases of
3.3C and a 3.9-metre rise in sea levels.

 

In the scenario the Bank suggests there would be "chronic changes in
precipitation, ecosystems and sea level" and "a rise in the frequency and
severity of extreme weather events such as heatwaves, droughts, wildfires,
tropical cyclones and flooding".

 

In contrast, the Bank has set out an "early action" scenario where carbon
taxes and other policies intensify "relatively gradually".

 

It suggests in that case carbon dioxide emissions would be reduced to net
zero by 2050 and the rise in temperatures limited to 1.8C. It said some
sectors would be worse affected than others but the overall impact on GDP
would be muted.

 

Under the Bank's third scenario it said "late action" delayed until 2031
could see climate policies achieve the same goals by 2050 but because
emissions are reduced over a shorter timescale, would mean greater economic
disruption.

 

It said that would result in sharp UK and global economic contraction, job
losses and market turbulence.

 

The Bank will monitor how the different scenarios could affect banks and
insurers, such as potential loan losses, as customers default due to slowing
growth and economic uncertainty.

 

Sarah Breeden, the Bank of England executive sponsor for climate change
said: "Though fiendishly complicated, climate scenario analysis is a
critical part of our toolkit to address future uncertainty about what might
happen to our planet, our economy and our financial system.

 

"By highlighting the risks of tomorrow, they can help guide actions today. I
encourage all firms, not just those participating, to engage in and learn
from this exercise."-BBC

 

 

Covid in Scotland: Soft play owners plan legal bid to allow reopening

Business owners in the soft play sector are threatening legal action over
lockdown restrictions which have stopped them from reopening.

 

Every centre in Scotland was closed at the start of the first lockdown in
March 2020, amid concerns about the spread of Covid-19.

 

Some have reopened as parts of Scotland moved down to level one
restrictions.

 

But many remain closed, with the industry warning the sector will be "no
more" if trading does not resume soon.

 

The Scottish government has said that, "as with all infection prevention
measures", the restrictions will only be in place "as long as is necessary".

 

Owners now say they want the government to publish scientific evidence that
soft plays are unsafe to open.

 

Funding for soft play centres and nightclubs

Soft play owners 'angry' at continued lockdown

They will stage a protest at Holyrood on Tuesday and are consulting lawyers
over a potential judicial review of what they see as unfair treatment.

 

Darren Margach, a member of the Scottish soft play owners management group,
said that despite talks with the government over the last 15 months, "no
science has been produced" showing why soft plays are more high risk than
other leisure activities.

 

He told the BBC's Good Morning Scotland programme: "Nobody can give us the
reasons that we're more dangerous than a trampoline park or ten pin bowling.

 

"We accept we have to be at reduced capacity when we're operating and our
cafés operate just the same as any other café in hospitality.

 

"There is obviously a discretionary fund available, however when you divide
it among all the sectors in need of support it doesn't net down to very much
at all - these funds are not a replacement for us being open and when you've
not traded for 448 days these little scraps are not good enough."

 

Last October, the Scottish government announced firms would receive grants
of up £50,000 to help them cope with the "exceptional circumstances" of the
pandemic.

 

The packages, which are also available to nightclubs, are linked to firms'
rateable value.

 

However, Sarah Davidson - who owns the Whale of A Time centre in Shawlands,
Glasgow - says she has lost "hundreds of thousands of pounds" and all 10 of
her staff because of the delay in reopening.

 

She told BBC Scotland's Drivetime programme that bosses were "at the end of
our tether".

 

Ms Davidson said: "There is a demand for us to be changed into a tier that
reflects where we think our businesses should be.

 

"If not, we want to see the actual documentation that proves that it's
unsafe for us to trade.

 

"In all of our discussions with the Scottish government, which have been
going on since September last year, they have never once been able to
produce a document which clearly says why we are not safe."

 

Soft play in England

Soft play centres reopened in England in mid-August last year.

 

But bosses in Scotland insist they have been harshly treated compared with
similar sectors.

 

Sarah Davidson said: "Many of our businesses are hanging by a string before
they go bust. We need to trade - we need to open.

 

"Soft play is open in the rest of the the UK and it's safe there.

 

"Trampoline parks and role-play cafes, which are similar businesses to us,
are all open. They are deemed safe, we are unsafe - why?"

 

She added: "I don't want money from the Scottish government, I just want to
open my business and trade.

 

"I've got a business that a year ago was thriving - I employed 10 local
young people.

 

"Now I've got nothing. My business is worthless. I just want to get back to
the job I love."

 

Positive tests

A Scottish government spokesman said: "We have always said we will keep
plans under review and accelerate the lifting of restrictions if possible,
and we will continue engaging with the soft play sector on this."

 

The industry's plea comes as Nicola Sturgeon is set to give an update on the
pandemic at Holyrood.

 

The first minister is not expected to announce any major policy changes when
she addresses MSPs at 14:20.

 

Meanwhile, a further 641 cases of Covid have been recorded in Scotland.

 

More than half of them were in the Greater Glasgow and Clyde and Lothian NHS
areas.

 

No new deaths were reported, although registry offices are usually closed at
the weekend.

 

An analysis of the positive tests in the past week shows that a high
proportion were among children and young people.-BBC

 

 

Las Vegas Sands faces $12 billion claim in Macau court

U.S. casino giant Las Vegas Sands (LVS.N) is facing a $12 billion lawsuit
from a former partner in a Macau court, in a case set to shine a light over
how coveted casino licenses were awarded in the world’s biggest gambling hub
two decades ago.

 

Former partner Asian American Entertainment Corporation, headed by Taiwanese
businessman Marshall Hao, is seeking damages of around 70% of Sands’ Macau
profits from 2004 to 2022. Reuters calculations puts the figure at around
$12 billion.

 

The trial, starting June 16, alleges that Sands breached its contract with
Asian American for a casino license in Macau, the only legal gambling
destination in China.

 

It comes as the casino titan faces plummeting gambling revenues due to
coronavirus travel and health restrictions, and a few months ahead of the
expiration of Sands' casino license in Macau. The operator needs to re-bid
for a license via a public tender in 2022.

 

Sands, which also runs a casino in Singapore, has been battling the claims
from Asian American since 2007 when the case was first launched in the
United States.

 

The case was lodged in Macau in 2012 after the U.S. case was dismissed for
statute of limitations and procedural reasons.

 

It dates to 2001 when Sands and Asian American jointly submitted a bid for a
gaming concession. During the process, Sands switched partners, teaming up
instead with Hong Kong group Galaxy Entertainment, according to the lawsuit.

 

The Sands-Galaxy combination went on to win a license in the former
Portuguese colony over a decade ago.

 

Marshall Hao told Reuters that Sands terminated its joint venture with Asian
American and then submitted a near identical replica of its previous
submission with new partner Galaxy.

 

"Asian American has been winning all major legal battles in the Macau
lawsuit since we filed it in 2012...we are confident."

 

Sands has sought to avoid the trial by lodging legal action in Nevada and
Macau. The company declined to comment, but said in 2019 it "has
consistently maintained that this case has no merit. We have confidence that
ultimately the Macao judicial process will reach the same conclusion."

 

In its latest annual report, Sands said its management was “currently unable
to determine the probability of the outcome of this matter or the range of
reasonably possible loss, if any.”

 

Sands, founded by late casino mogul Sheldon Adelson, has faced several
lawsuits over its earlier dealings in Macau, including over its securing of
the lucrative casino license.-The Thomson Reuters Trust Principles.

 

 

U.S. Senate passes bill to raise fees on biggest mergers

The U.S. Senate passed a bill on Tuesday that would increase fees that
companies planning the biggest mergers pay to government antitrust agencies
and give those agencies bigger budgets.

 

The bill - co-sponsored by Democrat Amy Klobuchar, the top antitrust
senator, and Chuck Grassley, the top Republican on the Senate Judiciary
Committee - would lower the fee for smaller mergers under $161.5 million to
$30,000 from $45,000. But for deals worth $5 billion or more, the fee would
rise to $2.25 million from $280,000.

 

"Now that my bill with Senator Grassley passed the Senate, the Federal Trade
Commission and Department of Justice's Antitrust Division are one step
closer to having additional resources to conduct rigorous reviews of large
mergers," Klobuchar said in a statement.

 

The antitrust measure was included in a Senate package aimed at boosting the
country's ability to compete with Chinese technology. read more The bill
must pass the House of Representatives to be sent to the White House for
President Joe Biden to sign into law.

 

The Federal Trade Commission and the Justice Department's Antitrust Division
assess mergers to ensure that they comply with antitrust law.

 

The measure would increase authorizations to each, giving the FTC a budget
of $418 million, while the Antitrust Division would receive $252 million.

 

Under a budget proposed by the Biden administration, the FTC would get
$389.8 million for the next fiscal year. That is an increase from $351
million this year, or about 11%. Also under Biden's plan, the Antitrust
Division would see its budget increase to $201 million from $185 million, an
increase of 8.6%. read more

 

Grassley said in a statement that the current system of assessing mergers
and working to stop anti-competitive practices was "outdated" and "not
getting the job done."

 

 

“I’m glad to see my colleagues in the Senate also recognize this issue and
support it (the bill) today,” he said.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

U.S. investigates disclosure of tax records on rich Americans

The Treasury Department has asked law enforcement authorities to investigate
the disclosure of tax records cited in a media report that showed that some
of America’s richest people paid little to no income taxes, U.S. officials
said on Tuesday.

 

U.S. media outlet ProPublica said it obtained "a vast trove of Internal
Revenue Service data on the tax returns of thousands of the nation's
wealthiest people, covering more than 15 years." The data indicated that
billionaires including Amazon founder Jeff Bezos and Tesla founder Elon Musk
paid no federal income taxes during some years.

 

White House Press Secretary Jen Psaki said that "any unauthorized disclosure
of confidential government information" is illegal.

 

Treasury Department spokeswoman Lily Adams said in an emailed statement that
the matter has been referred to the FBI, federal prosecutors and two
internal Treasury Department watchdogs, "all of whom have independent
authority to investigate."

 

The IRS, part of the Treasury Department, is the nation’s tax-collecting
agency and many tax records are considered confidential documents. IRS
Commissioner Charles Rettig also confirmed that an investigation is
underway.

 

"Obviously we take it very seriously," Psaki told a briefing.

 

ProPublica described the records as "confidential" and did not disclose how
it obtained them.

 

President Joe Biden has sought tax increases on the wealthy to help fund
proposed spending on infrastructure and social programs, including raising
the top tax rate to 39.6% from the current 37% and nearly doubling the
capital gains tax rate to 39.6% for Americans earning $1 million annually or
more.

 

 

"We know that there is more to be done to ensure that corporations (and)
individuals who are at the highest income are paying more of their fair
share," Psaki said.

 

Rettig addressed the matter during testimony to the Senate Finance
Committee.

 

“I can’t speak to anything with respect to specific taxpayers. I can confirm
that there is an investigation, with respect to the allegations that the
source of the information in that article came from the Internal Revenue
Service,” Rettig said.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

China's May factory gate prices rise at fastest pace in over 12 years

China's factory gate prices rose at their fastest annual pace in over 12
years in May due to surging global commodity prices and a low base of
comparison, while consumer prices increased for the third straight month but
at a slower-than-expected rate.

 

The producer price index (PPI) increased 9.0% from a year earlier, the
National Bureau of Statistics (NBS) said in a statement, driven by
significant price increases in crude oil, iron ore and non-ferrous metals.
Analysts in a Reuters poll had expected the PPI to rise 8.5% after a 6.8%
increase in April.

 

On a monthly basis, the PPI rose 1.6%, up from a 0.9 uptick in April.

 

Higher commodity prices and low bases last year could further drive up
China's producer price inflation in the second and third quarter, China's
central bank has said.

 

Prices for commodities including coal, steel, iron ore and copper, which
affect the PPI, have surged this year, fuelled by post-lockdown recoveries
in demand and ample global liquidity.

 

Chinese policymakers have pledged to take measures to cool red hot commodity
prices and prevent them being passed on to consumers. Soaring producer
prices have yet to feed through to China's consumer inflation, which remains
mild and well below the government's official target of about 3%. read more

 

NBS data also showed China's consumer price index (CPI) rose 1.3% in May in
annual terms, the biggest increase in eight months. That was still slower
than analysts' forecast for a 1.6% increase, after a 0.9% gain in April.

 

China's economy has seen a strong rebound from a coronavirus-induced slump
early last year.

 

China's gross domestic product (GDP) expanded by a record 18.3% in the first
quarter and many economists expect growth will exceed 8% this year.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

Africa: Airline Sector in Africa Soaks Up $10b Loss

The airline industry in Africa recorded a passenger revenue loss of about
$10.21 billion for the year 2020, with passenger numbers dropping from 95
million in 2019 to 34.7 million in 2020, representing a year-on-year decline
of 63.7 percent.

 

The African Airlines Association published its impact assessment analysis on
June 2, giving an in-depth analysis of the continent's air industry
performance for 2020, showing that the carriers will continue to lose money
in 2021, although it is expected to reduce to about $8.35 billion.

 

>From the end of March, the majority of carriers grounded their aircraft
causing a drastic seat and revenue per kilometre drop of 85 percent and 94
percent respectively in April. The reduction in traffic continued until
June, before reversing with the gradual opening of borders.

 

The survey also found that African airlines carried more domestic traffic in
2020, making 43 percent of their total traffic.

"The leading carriers in terms of domestic traffic are airlines like Safair,
Ethiopian Airlines, Mango Airlines, and Air Algerie. Those five airlines
carried 4.8 million passengers on domestic routes during the year.
International traffic represented 57 percent breaking down into 19 percent
of Intra-African and 38 percent of intercontinental passengers."

 

Europe is the major international destination of African airlines,
representing 21 percent and even exceeding Intra African traffic (19
percent), domestic excluded. Traffic to the Middle East tended to increase,
while traffic to Asia reduced due to Covid-19.

 

Northern Africa leads in passenger numbers, representing 36.6 percent of the
total continental traffic, boosted by European tourists. Eastern Africa is
second with a share of 22.2 percent of the continent's market. Domestic and
Intra-African traffic are dominant in this region, both representing 70
percent of the traffic in 2020.

 

Southern Africa suffered a 63.6 percent drop in traffic due to Covid-19 with
the region having only 21 percent of the continental traffic but its share
of domestic market grew to 77 percent in the last quarter of 2020, from 66
percent before Covid-19.

 

Central and Western African regions both represented 19.7 percent of the
traffic in Africa.

 

Johannesburg and Cairo were the busiest airports as per landings and
take-offs, with Jomo Kenyatta International Airport in Nairobi leading
ranking by freight traffic handling more than 330,000 tonnes in 2020
followed by Cairo's 280,000 tonnes.-East African.

 

 

East Africa: Kenya and EAC Sued Over $2.34 Billion IMF Loan

Kenya's Attorney-General Justice Kihara Kariuki and the EAC
Secretary-General Peter Mathuki have been named as first and second
respondents respectively in a case filed by two Kenyan organisations at the
East African Court of Justice.

 

In an application before the EACJ, the Peasants League Ltd Company (PLLC)
and the Kenya Abolition Debt Network (KABN) have sued the government and the
East African Community over Kenya's International Monetary Union loans.

 

Kenya is accused of failing to observe the public debt ceiling as provided
for in the EAC Monetary Union in its decision to borrow $2.34 billion
(Ksh255.9 billion) from the IMF in April.

 

Through Lumumba and Ayieko Advocates, the two organisations are accusing
Kenya of continuing to borrow loans beyond the set EAC public debt ceiling,
in violation of its own national laws, the EAC Treaty and the Monetary Union
Protocol.

They say that by continuing to borrow from the IMF, Kenya has violated
Article 9 of the EAC Monetary Union Protocol by failing to adjust its net
financing in accordance with the public debt ceiling as specified under the
EAC Monetary Union Protocol.

 

The two organisations now want the EACJ to compel Kenya to adhere to the EAC
Treaty and EAC Monetary Union Protocol in the management of the debt.

 

"Kenya recently procured a loan of about $2.34 billion (Ksh255.9 billion)
from the IMF," said Dick Omondi Olela, the national convener at the PLLC.

 

PLLC is a Kenyan company that brings together small-scale farmers and
consumers with an aim of promoting agroecology, food sovereignty, climate
justice and fair trade.

 

In a joint application, Mr Olela and David Calleb Otieno, the national
co-ordination of KABN, an NGO that campaigns for the abolition of illegal,
illegitimate, unsustainable and odious debts, blames Kenya for failing to
align its public ceiling in its Public Finance Management laws with that of
the EAC Monetary Union.

They argue that: "Kenya has continued to blatantly violate article 9 of the
Monetary Union Protocol by failing and /or neglecting to disclose to the
Council on a quarterly basis all status of its domestic and external debts
including its publicly guaranteed debts thus denying the Community the
benefit to monitor its implementation of the macroeconomic convergence
criteria."

 

"Kenya being a Party to the EAC Treaty and the EAC Monetary Union Protocol
is bound by the Treaty objects and purpose and can't use its municipal law
to defeat or frustrate the objects of the EAC Monetary Union," said Mr
Otieno.

 

"The total public debt in the 2019/2021 financial year was about 65.8
percent of the GDP and it is estimated to hit about 70.4 percent of the GDP
by the end of the 2020/2021 financial year," said Mr Olela.

 

They are seeking an order compelling Kenya to disclose to the Council its
status of domestic and external debts including its publicly guaranteed
debts on a quarterly basis.

 

They also want the costs of the case to be borne by both Kenya and the
EAC.-East African.

 

 

Namibia: Oil Driller Announces Petroleum System At Second Well

RECONNAISSANCE Energy Africa (ReconAfrica) announced the finding of a
working petroleum system at its second drill well (6-1), which it says again
confirms a working petroleum system in the Kavango Sedimentary Basin.

 

"Based on initial analysis of this first section, ReconAfrica is pleased to
report 134 metre (440 feet) of light oil and gas shows from the 6-1 well.
The shows are similar in character to those seen in the 6-2 well, 16
kilometres to the south.

 

"This second well (6-1), like the first well (6-2), in the same sub-basin,
shows clear evidence of a working conventional petroleum system," the
Canadian oil and gas company said in a statement on Thursday.

 

ReconAfrica spud its second well in early May, and says it is on schedule to
finish drilling operations of the 6-1 well by the end of this month.

 

Jim Granath, the ReconAfrica director, said the finding of many oil and gas
shows with such variety in the first two wells is remarkable.

"It is highly encouraging to see clastic and thick carbonate sections which
appear to have similar reservoir characteristics as observed in many other
petroleum provinces," Granath said.

 

ReconAfrica will now do a scientific analysis of these findings and said it
has added scientific analysis to its already robust programme of data
capture and analysis for the 6-1 well. This includes analysing natural gas
composition.

 

"[This will include] capture of natural gas samples using IsoTubes
technology to enable analysis of natural gas composition," the statement
detailed.

 

ReconAfrica expects the complete analysis of these two wells by the end of
July.

 

"The 6-1 and 6-2 wells are in the same sub-basin, one of five major
sub-basins of the larger, more laterally extensive Kavango Sedimentary
Basin. The upcoming 2D seismic survey will tie in the data from these two
wells and provide the first regional interpretation of the overall basin,"
ReconAfrica explained.

Despite contention from interested parties and members of local communities
in the Kavango East region where ReconAfrica is undertaking its oil
exploration activities, ReconAfrica is adamant that it is proceeding with
support from community members and local government.

 

The Kavango East governor's office last week threw its weight behind the
Canadian company, pledging full support of the company's oil exploration
activities.

 

Specifically, the governor's office disputed a National Geographic report
detailing that ReconAfrica might have fraudulently misled investors by
misrepresenting its work on the project, according to allegations lodged in
a whistleblower complaint filed with the US Securities and Exchange
Commission.

In the statement, Kavango East governor Bonifasius Wakudumo said the article
does not reflect the integrity and business practices of ReconAfrica in the
region.

 

"In all ReconAfrica's dealings with our office, local and traditional
authorities, the company has done everything legally and transparently,
respecting all levels of authority and the expectations of our communities.

 

"We are pleased with ReconAfrica's approach to working closely and in
constant consultation with our office, the traditional leadership, local
authority and the community. This is only the beginning stages and we have
already started to experience the positive economic and social impact of the
project in our regions," he said.

 

When probed about the purported positive economic and social impacts,
Wakudumo cited various donations and employment opportunities.

 

"ReconAfrica has contributed immensely towards food donation to the affected
communities during Covid-19. They also donated medical equipment to Rundu
hospital.

 

"They've drilled three boreholes for remote communities which had no access
to potable water, and SMEs are benefiting in terms of work. To me that is
something for the region," Wakudumo told this newspaper in a brief telephone
interview on Thursday.

 

The governor said local people are employed based on the work available on
ReconAfrica's sites.

 

"There are local contractors hired to transport the workforce and to offer
security services of guarding premises where they operate. Construction work
on the sites also goes to local communities," he detailed.

 

Environmental and community activists, who are against the company's
activities in the region, have in the past said promises of employment are
misleading.

 

In an earlier exchange with community activist Rinaani Musutua, The Namibian
was informed that ReconAfrica employed a few local community members for
short or temporary stints.

 

"People think that ReconAfrica is bringing jobs. Some communities are so
desperate. The communities there are really marginalised and really left
out. There is no development taking place, so they're really hoping that
ReconAfrica is going to bring some jobs. But it's actually not going to
happen at all.

 

"What ReconAfrica is doing to give people the impression that they are
creating jobs is to employ people for only about two or three weeks on
short-term contracts and then they fire them," Musutua said.

 

Musutua speculated that ReconAfrica does this to inflate its figures on
local employment in these communities.

 

According to ReconAfrica's first progress report on its environment, social
and governance (ESG) framework, the oil driller said it has so far employed
more than 200 Namibians on its stratigraphic drilling project.

 

Furthermore, ReconAfrica said it is working with Namibian education
institutions to enhance training programmes in Stem (science, technology,
engineering and math) as part of its ESG framework, among other
things.-Namibian.

 

 


 


 


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
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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
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contents or otherwise arising in connection therewith. Recipients of this
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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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