Major International Business Headlines Brief::: 11 June 2021

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Major International Business Headlines Brief::: 11 June 2021

 


 

 


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

 


 

 


ü  Goldman bankers ordered to report vaccine status before office return

ü  Starbucks faces drinks ingredients shortage in US

ü  EA: Gaming giant hacked and source code stolen

ü  Used car costs drive US prices higher in May

ü  Oatly sues UK oat milk maker over trademark

ü  G7 tax deal: What is it and are Amazon and Facebook included?

ü  Facebook remote working plan extended to all staff for long term

ü  US overtakes UK as hardest hit by Covid deaths in G7

ü  BA puts thousands of staff back on furlough

ü  UK economy lags behind other countries in Covid recovery

ü  Ex-Brewdog staff allege culture of fear at brewer

ü  Japan minister denies officials asked adviser to contact Toshiba
shareholders

ü  'This car crushes' Musk says, as Tesla launches faster Model S 'Plaid'

ü  BlackRock gets license to start China mutual fund business

ü  Signa Sports agrees to $3.2 bln SPAC deal, to buy Wiggle bicycle store

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Goldman bankers ordered to report vaccine status before office return

Goldman Sachs' US bankers have been ordered to disclose their Covid vaccine
status ahead of a return to the office.

 

In a memo seen by the BBC, the investment bank said it was mandatory to do
so by 17:00 BST on Thursday.

 

While it strongly encouraged staff to get a vaccine, it said: "We understand
that the choice to get vaccinated is a personal one."

 

Goldman is hoping to bring US staff back to the office on 14 June, it told
employees last month.

 

The notice, which was first reported by the New York Times, said:
"Registering your vaccination status allows us to plan for a safer return to
the office for all of our people as we continue to abide by local public
health measures."

 

The bank had said staff in the US could work in the office without a mask if
they had been vaccinated.

 

Its UK employees were also previously told that they should expect to be
working on-site from 21 June - the date on which the government hopes to
lift legal limits on social contact in England.

 

It is not clear whether UK workers for the bank have been told to report
their vaccine status.

 

Bank boss rejects work from home as a 'new normal'

Can I ask to keep working from home?

But Kate Hindmarch, partner in employment law at Langleys Solicitors, said
that problems may arise from requiring proof of vaccinations.

 

"Vaccinations create a conflict of legal protections, where the freedom of
individual choice is weighed against the health and safety of others.

 

"Some employees may have a justifiable reason for not wanting to take the
vaccine, and we would always urge employers to discuss an employee's
reluctance, whether it be related to a disability or religious reasons."

 

'Aberration'

She said there could also be serious ramifications if any employers
dismissed staff who were reluctant to be vaccinated.

 

Goldman Sachs in particular has been vocal about a need to return to the
office as social distancing restrictions ease.

 

"We know from experience that our culture of collaboration, innovation and
apprenticeship thrives when our people come together, and we look forward to
having more of our colleagues back in the office so that they can experience
that once again on a regular basis," chief executive David Solomon,
president John Waldron and chief financial officer Stephen Scherr said in a
joint statement last month.

 

Mr Solomon also drew some criticism earlier in the pandemic when he
described working from home as "an aberration".

 

Rival investment bank JP Morgan is planning for "significantly" less office
space, it said in April. And big tech firms, such as Facebook, have said
they will let all employees who can work away from the office do so once the
pandemic is over.--BBC

 

 

 

Starbucks faces drinks ingredients shortage in US

Starbucks has been hit by supply shortages in the US meaning some drinks are
unavailable for customers.

 

The coffee chain said it was seeing "temporary supply shortages" for items
such as oat milk.

 

A Starbucks spokeswoman said: "Specific items will vary by market and store,
and some stores will experience outages of various items at the same time.

 

She apologised for any "inconvenience" faced by customers and said it was
working with vendors to restock items.

 

Starbucks customers in the US who open the firm's app are also currently
greeted with a message apologising for any shortages.

 

Other than oat milk, Starbucks would not confirm which other ingredients
were affected.

 

But an internal memo, seen by Business Insider, suggests that 25 different
products are on a "temporary hold" including hazelnut syrup, chai tea bags
and green iced tea.

 

Caffeine addicts on social media have also been complaining about not being
able to order their favourite drinks.

 

Others said they had noticed that no caramel flavouring or lemonade was
available in their local outlets.

 

Some members of staff also posted about the frustration of having to explain
the situation to customers.

 

One wrote that the firm had not anticipated such a significant number of
customers returning to cafes and restaurants as coronavirus restrictions
ease.

 

The BBC asked Starbucks for specific details about why there were shortages.

 

The company said in an emailed reply: "The temporary supply shortages
occurring in the US on some products is attributable to the supply chain
constraints."

 

Earlier this week, it announced that customers in the US would be allowed to
start using reusable cups again to get a discount on their drinks in
company-owned cafes.

 

The Seattle-based firm is among a number of companies in the US facing
supply chain issues and a shortage of workers in recent weeks.

 

Fast food firm Chick-Fil-A, for example, recently said "industry-wide"
shortages meant it had had to limit dipping sauces, while Mexican chain
Chipotle said it was raising prices across its menu by 4% to pay for wage
increases and rising food costs.-BBC

 

 

EA: Gaming giant hacked and source code stolen

Hackers have stolen valuable information from major game publisher
Electronic Arts (EA), the company said.

 

The attackers claimed to have downloaded source code for games such as FIFA
21 and for the proprietary Frostbite game engine used as the base for many
other high-profile games.

 

News of the hack was first reported by news site Vice, which said some 780GB
of data was stolen.

 

EA said no player data had been stolen in the breach.

 

The firm is one of the largest games companies in the world. It counts major
series such as Battlefield, Star Wars: Jedi Fallen Order, The Sims, and
Titanfall among the titles it develops or publishes - as well as a vast
array of annual sports games.

 

'No risk to players'

"We are investigating a recent incident of intrusion into our network where
a limited amount of game source code and related tools were stolen," an EA
spokesperson said in a statement.

 

"No player data was accessed, and we have no reason to believe there is any
risk to player privacy," she added.

 

The company said it had already improved security and stated that it did not
expect "an impact on our games or our business".

 

Law enforcement has also been contacted.

 

The "network intrusion" was not a ransomware attack and had happened
recently, EA added.

 

In its report, Vice said it had seen screenshots of the hacking forums used
by the attackers, who are advertising the stolen data for sale.

 

Valuable hack

Source code is a version of computer software which is usually much easier
to read and understand than the end version in a finished product, and could
be used to reverse engineer parts of the product.

 

For example, the Frostbite engine, which hackers claim to have the source
code for, is a powerful game creation tool used in dozens of games, from
FIFA to the Battlefield series and several recent Star Wars games from EA.

 

The source code for the engine could hold significant value for an
unscrupulous developer willing to copy it, or for those making cheat codes
and hacks for games.

 

But it is unlikely that any mainstream competitor to EA would ever use such
stolen data.

 

It is the latest in a string of high-profile gaming company hacks.

 

In November last year, Capcom, the maker of Street Fighter and Resident
Evil, suffered a ransomware attack which may have revealed the personal
information of up to 350,000 people.

 

And in February, Cyberpunk developer CD Projekt Red suffered another
ransomware attack which resulted in the source code for several games being
stolen and auctioned off online.

 

In that case, the hackers claimed to have sold the data for more than $7m
(£4.9m), though it is not clear if the sale actually happened.-BBC

 

 

 

Used car costs drive US prices higher in May

US inflation continued to surge in May as prices for used cars and energy
picked up.

 

Consumer prices jumped 5% in the 12 months to the end of May, up from 4.2%
the month before.

 

The new figures from the US Labor Department mark the biggest year-on-year
increase since August 2008.

 

It comes amid fears that rising prices could prompt the US central bank, the
Federal Reserve, to push up interest rates.

 

Some analysts have said, however, that inflation could be rising because of
temporary factors such as supply bottlenecks.

 

Inflation, which measures the rate at which the prices for goods and
services increase, was pushed up by higher prices for used vehicles last
month.

 

The price of second-hand cars and lorries jumped 7.3%, accounting for about
one-third of the overall increase, the Labor Department said.

 

What is inflation?

Inflation is the rate at which the prices for goods and services increase.

 

It's one of the key measures of financial well-being because it affects what
consumers can buy for their money. If there is inflation, money doesn't go
as far.

 

It's expressed as a percentage increase or decrease in prices over time. For
example, if the inflation rate for the cost of a litre of petrol is 2% a
year, motorists need to spend 2% more at the pump than 12 months earlier.

 

And if wages don't keep up with inflation, purchasing power and the standard
of living falls.

 

US economy 'to grow much faster than expected'

The jump was also down to the cost of airline tickets and clothes
increasing, with demand for consumer goods and travel recovering as
coronavirus-related restrictions ease.

 

The "core price index", which strips out food and energy costs that can be
more volatile, increased 3.8% in May from the year before.

 

The jump seen last month could also be fuelled by the fact that prices
dropped off at the height of the pandemic last year, so the increase seen
now from 2020 is bigger.

 

'Uncertain' outlook

Willem Sels, chief investment officer for private banking and wealth
management at HSBC, said the headline inflation figure was "bound to rise".

 

"The good news is that these effects should fade with time, which should
lead inflation to fall, potentially even starting next month," he said.

 

But he cautioned that the outlook remained uncertain.

 

Inflation is breaching the Federal Reserve's target of 2%, raising fears
among investors it might need to put up interest rates more quickly than had
been expected to cool things down.

 

In March, US President Joe Biden signed a $1.9tn (£1.4tn) economic relief
bill that saw the government send $1,400 cheques to most Americans, and last
month he set out plans for more government spending on jobs, education and
social care.

 

It has led to a build-up of savings which is now being spent as the economy
reopens, driving prices higher.

 

Robert Alster, chief investment office at Close Brothers Asset Management
added: "With prices rising, economists are left with a key question, what is
driving the surge in inflation and, critically, is it transitory or
persistent?

 

"The reality is there are a number of factors at play... all underpinned by
a surge in demand. What is abundantly clear is that the Fed, and
policymakers around the world, will be keeping a close eye on US inflation
in the coming months to see whether this is a trend."

 

The Fed has previously insisted that increases would be temporary before
levelling out.

 

But rising prices have already prompted some businesses to take action.

 

Fast-food chain Chipotle, for example, recently raised its menu prices by
about 4% across many markets to cover the costs of wage increases as well as
higher food prices, its chief financial officer said this week.-BBC

 

 

 

Oatly sues UK oat milk maker over trademark

Oatly, the plant milk maker backed by Oprah Winfrey, is in a court battle
with a Cambridgeshire farm over alleged trademark infringement.

 

Lawyers for Oatly sought a High Court injunction on Thursday to stop Glebe
Farm Foods selling its PureOaty brand.

 

Oatly said it contacted the PureOaty makers in early 2020 saying "their
branding infringed our trademark".

 

Farmer Phillip Rayner, who owns Glebe Farm, said the PureOaty name was "a
nod to the purity of the product".

 

Mr Rayner said that his company began producing the beverage using
British-farmed oats about 18 months ago, but Oatly now wants Glebe Farm to
stop using the PureOaty brand and change its packaging.

 

The Cambridgeshire farmer said: "Oatly says the name and packaging is too
similar to theirs, but when we compare the two products side by side, we are
surprised by this."

 

A spokesperson for Oatly said that since the 2020 letter, "we unfortunately
received no constructive response from them. We are therefore now involved
in an ongoing court case and we have no further comment as we await the
results."

 

The case at the London High Court is expected to conclude on Thursday.

 

Oatly, which was founded in the 1990s and produces a milk substitute made
from oats, has grown rapidly in recent years.

 

Its oat milk is now sold in 60,000 shops and more than 32,000 coffee shops
across 20 countries and the company is now worth more than $15bn

 

Other celebrity investors in the firm alongside Ms Winfrey include Jay-Z and
Natalie Portman, It has also had investment from the state-owned China
Resources and Verlinvest, a Belgium-based investment firm.-BBC

 

 

 

G7 tax deal: What is it and are Amazon and Facebook included?

A group of the world's richest nations has agreed to make multinational
businesses such as Amazon and Facebook pay more tax.

 

The plan, by the G7 (Group of Seven), also aims to stop the world's largest
companies avoiding tax by moving their operations between countries.

 

How would the deal work?

There are two parts to the deal, which will be signed by the G7 nations
(Canada, France, Germany, Italy, Japan, the UK and the US) at a summit in
Cornwall this weekend.

 

Firstly, multinational companies - which operate in several countries -
would have to pay more tax wherever they sell products or services.

 

At the moment, a company can earn billions in a particular country but still
pay very little tax there. This is because they can choose to put their
headquarters in a country with a lower tax rate and take their profits
there.

 

For example in 2018, Facebook, which has its international HQ in Dublin,
paid £28.5m in tax to the UK, although its revenue was £1.65bn.

 

However, under the G7 deal, companies could be taxed in any country where
they make more than 10% profit on sales.

 

Above that point, the company would have to pay 20% tax.

 

The deal is "all about changing which country gets to tax the companies",
says Chris Sanger, head of tax policy at accountancy firm EY.

 

What other tax changes does the G7 plan?

The second part of the deal is a global minimum corporate tax rate of 15%.

 

The aim of this is to stop nations undercutting each other's tax rate to
attract multinational companies.

 

Ireland has operated a policy of attracting US technology companies to set
up their headquarters there, chiefly through the offer of a low corporation
tax rate of 12.5% (the UK's is 19% and set to rise to 25% by 2023).

 

Along with Facebook, Google has its international headquarters in Dublin's
Grand Canal Quay, with TripAdvisor and AirBnB nearby.

 

If the G7 deal goes ahead, the tax advantages which have attracted these
companies would cease to exist.

 

Ireland has said the concerns of smaller countries must be heeded, but it is
also a member of the EU, which is firmly behind the deal.

 

Germany's finance minister Olaf Scholz told the BBC that the likes of
Ireland needed to "get on the train".

 

Why is this deal needed?

The rapid rise of tech firms such as Amazon and Facebook has highlighted the
problem of how to tax the world's biggest companies

 

Unlike, say, the steel industry, most tech companies are mobile and can
easily move between countries.

 

At the moment, it's hard for a country acting alone to do anything about
this.

 

If the country tries to raise corporate taxes, companies can and will move,
and they are often welcomed elsewhere.

 

This is perfectly legal, but many governments think business has a moral
duty to pay more tax - especially after an international crisis such as the
pandemic.

 

US President Biden has made this a priority since his election.

 

Last month, a US Treasury statement said "a race to the bottom" on corporate
taxes was "undermining the United States' and other countries' ability to
raise the revenue needed to make critical investments".

 

The G7 deal is the first co-ordinated international attempt to deal with the
issue.

 

If it works, then billions of dollars may flow to governments to pay off
debts built up during the Covid crisis.

 

Will it work and will Amazon and Facebook be affected?

A lot of detail is still to be worked out, including which companies are
going to be covered, and what tax changes countries will see.

 

There have been concerns Amazon may not be affected.

 

Although the company makes huge profits in some areas, it currently makes
less than the 10% profit needed to be included in the new tax rules.

 

However, US Treasury Secretary Janet Yellen said Amazon and Facebook "would
qualify by almost any definition".

 

Meanwhile, aid charities have complained that the agreed minimum rate of 15%
is too low, and will not stop tax havens from operating.

 

Oxfam's executive director Gabriela Bucher said the deal would benefit G7
states, but not poorer nations.

 

What about the countries that haven't signed up?

The agreement is a major moment, but it is only a deal between the seven
most advanced economies.

 

Other major nations, such as China and Russia, will discuss the deal at the
G20 meeting in July, before 139 countries analyse it.

 

If the largest countries sign up, then the deal might "build momentum to get
many more to follow suit", according to Mr Sanger.

 

However, the deal is far from done and will take years to negotiate.-BBC

 

 

 

Facebook remote working plan extended to all staff for long term

Facebook will let all employees who can work away from the office do so
after the Covid pandemic is over.

 

The company has told employees "anyone whose role can be done remotely can
request remote work".

 

Rival big tech firms Apple and Google have recently reversed pandemic
working conditions, telling staff to return to the office in the coming
months.

 

Facebook chief executive Mark Zuckerberg told staff he plans to spend up to
half of 2022 working remotely.

 

He had previously said that half of the company's 60,000 employees could be
working from home within a decade.

 

Facebook's offices are expected to open to full capacity in October, but
employees without permission to work remotely will have to come in at least
half the time.

 

 

A Facebook executive, quoted by the Wall Street Journal, declined to say how
many employees currently had permission to work from home, but said the
company had approved about 90% of requests.

 

Contracted out

The company told the BBC that its new remote work policies apply to Facebook
employees only, and not subcontractors, who are widely used to carry out
content moderation and other tasks.

 

In November 2020, content moderators openly accused Facebook of forcing them
back into the office.

 

At the time, the company said that the majority of its 15,000 global content
reviewers had been working remotely, and would be able to do so for the
duration of the pandemic.

 

Mr Zuckerberg set out his own experience of remote working in a separate
memo to staff.

 

He said being out of the office had made him "happier and more productive at
work", adding it had given him "more space for long-term thinking" and
enabled him to "spend more time with my family".

 

Mr Zuckerberg spends some of his time on his private estate in Hawaii.

 

Home days

Other tech giants have also set out their future plans for the return to the
office.

 

On Thursday, Amazon told employees they're expected to work in-office at
least three days per week, with the specific days to be decided on by
leadership teams.

 

Employees in the UK, US and a handful of other countries are expected to
begin their return to the office in early September.

 

In an all-staff memo last week Apple boss Tim Cook said he missed the "hum
of activity" and workers should be in the office at least three days a week
by September, specifying Wednesdays and Fridays as when employees may work
remotely.

 

But that plan proved controversial among some employees, who circulated a
letter that said Apple's policy had "already forced some of our colleagues
to quit".

 

In a message to "Googlers" in May, chief executive Sundar Pichai wrote that
the company would move to a hybrid work week, where most staff would "spend
approximately three days in the office, and two days wherever they work
best".

 

The changes, he wrote, should eventually result in the majority of employees
being in the office a few days a week, and about a fifth working remotely
full-time.

 

Mr Pichai added: "The future of work is flexibility."-BBC

 

 

US overtakes UK as hardest hit by Covid deaths in G7

The US was worst hit by the pandemic in the G7 big Western democracies over
the first year of Covid-19, according to an updated study of excess death
figures.

 

The analysis, done for the BBC by the Health Foundation, comes on the eve of
the G7 summit in Cornwall.

 

It measures deaths above expected levels for a normal year.

 

Last year, an earlier BBC study showed that at that point, the UK had been
hardest hit. Overall, UK outcomes are now second worst in the G7.

 

The analysis shows that in the second half of last year in particular, US
levels of excess deaths failed to drop back as much as other comparable
industrialised nations.

 

However, the UK's worse outcomes in the first wave, and a significant peak
of deaths in December and January, still mean that overall UK outcomes were
second worst, on one measure just behind the US.

 

The other G7 countries - Italy, France, Canada, Germany and Japan - had
fewer excess deaths, with the latter three significantly fewer.

 

Excess deaths graphic

The principal measure of comparison is excess deaths. This is the percentage
of above normal deaths over the year, which can help account for different
measurement techniques in different countries.

 

It is a measure of the overall impact of the pandemic, including directly
from the disease and from the response to it.

 

The raw numbers of reported Covid-19 deaths show the UK as the worst in the
G7, but most analysts believe there has been structural under-reporting of
Covid deaths in the US, which has seen far less testing, making the excess
deaths comparison more appropriate.

 

The analysis shows that between March 2020 and February 2021, there were a
fifth more deaths than in a normal year for the US (+20.2%) and a little bit
under a fifth for the UK (+19.6%),

 

Italy was lower, but still significantly hit (+17%), French excess deaths
were one-10th higher (+10.2%), and then Canada (+5.1%) and Germany (+4.9%)
saw deaths only one-20th up on normal.

 

Japan's deaths (-1.4%) were actually lower over this first year than would
have been expected.

 

Another measure, adjusted for the size of population, showed that there were
227 excess deaths for every 100,000 people in the US.

 

There were just under that both for the UK (181) and Italy (180). France was
clearly lower at 125. Canada (92) and Germany (92) had an excess death rate
below one in 1,000. And Japan's figure was lower still (47).

 

Increase in expected deaths graph

Comparing the pandemic waves over the course of the year shows that the
level of excess deaths in the US remained high between peaks and never fell
back to zero. This reflects an absence of lockdowns and different policies
across different US states.

 

Charles Tallack from the Health Foundation said: "Understanding how similar
countries have fared over the pandemic is a vital part of learning lessons
for the future.

 

"Excess deaths - how many more deaths there have been than in a usual year -
is generally regarded as an objective and fair way of comparing countries.

 

"Over the first year of the pandemic, the US comes out as the worst affected
country in the G7 with deaths of up to 25% more than usual.

 

"The UK is not far behind in second place. Japan has fared best followed by
Germany. These rankings remain the same even when we use slightly different
approaches, so we're confident that they provide a fair comparison of the
first year."

 

Expected deaths graph

Other metrics showed that the US has had the fastest economic bounce-back,
already having made up the lost growth in the pandemic. The US economy is
forecast to grow 6.9% this year, after a fall of 3.5% last year.

 

The UK is expected to grow a similar amount at 7.2% this year, but that is
after the largest fall in the G7 in 2020 of -9.8%. Canada is also bouncing
back fast, with growth forecast this year of more than 6%, after a
relatively modest hit last year of 5%.

 

There have also been marked differences within the G7 on the rollout of
vaccinations.

 

The share of the population that is fully vaccinated almost exactly follows
the countries most hit by the pandemic. The US has vaccinated the most,
alongside the UK, followed by Italy.

 

Japan has vaccinated the least, then Canada, with France and Germany in the
middle.-BBC

 

 

 

BA puts thousands of staff back on furlough

British Airways has put thousands of its staff back on furlough because of
delays to the restart of international travel.

 

BA had begun to bring people back ahead of the easing of restrictions on
foreign holidays on 17 May.

 

But only a small number of countries have been put on the government's green
list, meaning travellers do not have to quarantine on their return.

 

Moreover, official advice remains not to visit amber countries for leisure.

 

This has meant the travel industry is now almost at a standstill as the
majority of people choose not to travel.

 

It is understood a large number of BA staff were already on furlough, but
this change means many more will go back onto the government wage support
scheme.

 

Travel industry dismisses US-UK moves to reopen

'We will lose £1,300 unless we get flight refund'

Many will go onto the flexible furlough scheme and work part time, in the
hope international travel will recommence soon.

 

Those affected include management staff and those not linked to safety
operations and plane critical roles. It is understood every layer of the
business is affected.

 

A British Airways spokesperson said: "Like many companies we're using the
furlough scheme to protect jobs during this unprecedented crisis.

 

"However, it's vital the government follows its risk-based framework to
re-open international travel as soon as possible, putting more low-risk
countries, like the US, on its green list at the next available
opportunity."

 

Airlines burn through millions of pounds when not operating because of
safety, maintenance and engineering operations, and this decision is thought
to be an attempt to preserve cash.

 

Lack of certainty

Transatlantic operators BA, Virgin and American Airlines had hoped there
would be an agreement between President Biden and Boris Johnson at the G7 to
create an air corridor between the US & UK.

 

But the industry was disappointed last night to be told a taskforce would
only start looking at recommendations.

 

The boss of Virgin Atlantic, Shai Weiss, said: "The creation of the Atlantic
Taskforce is positive recognition of the importance of the UK-US travel
corridor and a first step towards reopening the skies."

 

But he said the lack of a specific time frame for reopening travel meant
airlines, businesses and passengers faced a lack of certainty.-BBC

 

 

UK economy lags behind other countries in Covid recovery

The UK's recovery from the damage caused by the Covid pandemic lagged behind
other big economies in the first three months of 2021.

 

Economic output was 8.7% below pre-pandemic levels at the end of 2019, said
the Organisation for Economic Co-operation and Development (OECD).

 

Overall, the economic output of the G20 group of major economies edged
ahead, led by India, Turkey and China.

 

But most others, such as Italy, Germany and the EU as a whole, shrank.

 

A country's Gross Domestic Product (GDP) or economic output measures how
well or badly an economy is doing.

 

The OECD think tank said GDP in the G20 area returned to pre-pandemic levels
in the first quarter of 2021, but with large differences across countries.

 

Chart of economies pre and post pandemic

Overall, the G20 grew slightly compared with the final three months of 2019,
before the mass lockdowns and economic disruption caused by the Covid
pandemic.

 

The UK and Italy recorded the largest falls from pre-pandemic GDP levels,
down 8.7% and 6.4% respectively, while Germany, France, the euro area and
the European Union all recorded declines of more than 4%.

 

Year-on-year, the G20 countries grew by 3.4% in the first three months of
this year. China, which the OECD points out was affected by Covid at an
earlier stage than other countries, recorded the highest annual growth at
18.3%, while the UK saw the biggest annual fall at minus 6.1%.

 

Last month, the OECD predicted that the UK economy's recovery from the
pandemic would be stronger than previously thought.

 

It said the UK was likely to grow 7.2% in 2021, up from its March projection
of 5.1%, making it the fastest among the large rich countries.

 

It also raised its forecast for global growth this year to 5.8%, compared
with the 4.2% it predicted in December.

 

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

 

The global economy is slowly recovering - but there's still a great deal of
uncertainty about the future, and the picture can vary wildly from region to
region.

 

It's not hard to see why. Although the pandemic has cut a swathe through
countries around the world over the past year, there have been big
differences in the timing of outbreaks, as well as in the speed and nature
of national responses.

 

In wealthier countries in particular, the progress of vaccination programmes
is now providing grounds for optimism that a return to normality is not too
far away. But that has to be balanced by concerns about the potential impact
of new variants of the virus.

 

Such uncertainty is reflected in the European Central Bank's decision today
to maintain its Covid-related economic stimulus programme, despite
increasing its forecasts for both growth and inflation in the eurozone.

 

If the past year has shown us anything, it's that predicting the course of
the pandemic is anything but straightforward - and the path to recovery is
unlikely to be smooth.-BBC

 

 

Ex-Brewdog staff allege culture of fear at brewer

Former staff at Brewdog have alleged a "culture of fear" at the beer firm
with a "toxic attitude" to junior employees.

 

In an open letter, signatories said a "significant number" of former staff
had "suffered mental illness as a result of working at BrewDog".

 

They claimed that the firm was built around a "cult of personality" of
founders James Watt and Martin Dickie.

 

Mr Watt said Brewdog was "sorry" and that it would not contest the letter,
but "listen, learn and act".

 

The Scottish brewer and pub-chain rapidly rose into the mainstream after
major supermarkets started stocking it in 2008.

 

But it has also courted controversy with its marketing and commercial
decisions.

 

The open letter, which was posted on Twitter and signed by more than 60
former staff, made a number of allegations, including a culture where staff
were afraid to speak out about concerns.

 

It said Mr Watt and Mr Dickie had exploited publicity, "both good and bad"
to further their own business goals and chased "growth, at all costs".

 

It added: "You spent years claiming you wanted to be the best employer in
the world, presumably to help you to recruit top talent, but ask former
staff what they think of those claims, and you'll most likely be laughed at.

 

"Being treated like a human being was sadly not always a given for those
working at Brewdog."

 

According to the letter, toxic attitudes towards junior staff had "trickled
down" throughout the business "until they were simply an intrinsic part of
the company".

 

"Put bluntly, the single biggest shared experience of former staff is a
residual feeling of fear. Fear to speak out about the atmosphere we were
immersed in, and fear of repercussions even after we have left," it added.

 

'Vanity projects'

One of the ex-staff members who signed the letter, Christopher Baria-Lewis,
told the BBC he "felt it was important, with former colleagues, to get a
message out there".

 

"Their [Brewdog's] external persona doesn't align with how they operate," he
said, adding that the letter had been organised collectively.

 

The letter also questioned Brewdog's commitment to sustainability after
"years of vanity projects" and use of a private jet.

 

Along with many breweries, pubs, and other parts of the hospitality
industry, Brewdog has been hit by the coronavirus pandemic.

 

Mr Watt said: "At Brewdog, we are focused on building the best business we
can, which is why the open letter we saw on Twitter was so upsetting, but so
important.

 

"Our focus now is not on contradicting or contesting the details of that
letter, but to listen, learn and act.

 

"As a fast-growing business, we have always tried to do the best by our team
- we do have thousands of employees with positive stories to tell as a
result."

 

But he said the tweet by former staff proved that "on many occasions we
haven't got it right".

 

"We are committed to doing better, not just as a reaction to this, but
always; and we are going to reach out to our entire team past and present to
learn more.

 

"But most of all, right now, we are sorry."

 

He said it had been "hard to hear" the comments, but added: "It must have
been harder to say them.

 

"We appreciate that and we will endeavour to honour that effort and courage
with the real change it deserves. We aren't going to make excuses, we're
going to take action."

 

Brewdog started out in 2007, being passionate about craft beer and
contemptuous of rival big brewers. It's become at least as passionate about
growth, by unconventional "punk" means.

 

So far, there is a big brewery in Aberdeenshire, plus others in Berlin,
Brisbane and Columbus, Ohio. There are more than 100 Brewdog bars, dotted
across the world map. And a new project is beer-themed hotels, in Ohio,
Manchester and Edinburgh.

 

This has been funded through the sale of a big chunk of the business to
private equity and several rounds of crowdfunding. The AGM in Aberdeen has
become something of a party.

 

But it seems the combined publicity-thirsty passion for beer and growth has
been bruising. Every employer has disgruntled ex-employees. Usually, once
dispersed, they moan into their beer. But in this case, these ex-staff
signatories have taken their passion for beer and applied it to improving
working conditions in their industry.

 

Co-founder James Watt concedes he didn't always "get things right". He
dispensed with the usual combative defiance. His response is chastened,
recognising that the accusations could be damaging to the brand and to
recruitment.

 

He has become very successful by inviting drinkers to buy into products
infused with the passion of beer people. So this runs counter to the values
of clubby comradeship. Repairing the damage will take more nuance than
Brewdog usually deploys.--BBC

 

 

 

Japan minister denies officials asked adviser to contact Toshiba
shareholders

Japan's trade ministry on Friday denied its officials directed an adviser to
contact Toshiba Corp (6502.T) shareholders as part of a plan to pressure
them to support management in a key vote on board membership.

 

An explosive shareholder-commissioned investigation released on Thursday
found Toshiba management and the government colluded to lean on foreign
investors to fall in line with management's wishes.

 

Among its findings, the investigators' report said the trade ministry
"effectively asked" a government adviser, described as "Mr. M", to negotiate
with Harvard University's endowment fund to change its voting behaviour.

 

"Ministry officials have informed me that it's not true that any request was
made to engage with individual investors," Trade Minister Hiroshi Kajiyama
told a regular press briefing.

 

He added that the ministry was waiting on Toshiba's response to the report.

 

Sources have previously told Reuters that Hiromichi Mizuno, a ministry
adviser at the time, had told the Harvard fund it could be subject to a
regulatory probe if the fund did not follow management's recommendations at
last year's annual general meeting.

 

Mizuno, a Tesla Inc (TSLA.O) board member and friend of Elon Musk,
previously oversaw Japan's $1.4 trillion Government Pension Investment Fund
and is currently the United Nations Special Envoy on Innovative Finance and
Sustainable Investment.

 

He did not immediately respond to a request for comment.

 

The independent investigation found that Toshiba had devised a plan to
effectively prevent shareholders from exercising their rights by putting
undue influence on Effissimo Capital Management, Toshiba's top shareholder,
to withdraw its proposed board nominees.

 

The report also said the plan sought to pressure another fund, 3D Investment
Partners, in addition to the Harvard fund to change their votes and that
Prime Minister Yoshihide Suga verbally encouraged pressure on shareholders
when he was chief cabinet secretary during a meeting with a senior Toshiba
executive last year.

 

Suga, who left Japan yesterday for a meeting of G7 leaders in Britain, has
denied that allegation.

 

The report flies in the face of efforts led by Japan's finance ministry to
improve corporate governance and attract foreign investment, and comes as
the country tries to burnish its international reputation ahead of the 2020
Olympic games in Tokyo next month.

 

As one of the industrial conglomerates that modernized Japan and helped its
post World War Two economic recovery, Toshiba enjoys close ties with
government. Its nuclear reactors and defence equipment businesses mean it is
also closely monitored by industry bureaucrats.

 

In 2017, however, battered by accounting scandals and massive writedowns on
its U.S. nuclear reactor business, Toshiba had to quickly seek a large
capital injection from overseas investors.

 

As a result, activist investors are estimated to account for 25% of
Toshiba's shareholder base.

 

Toshiba's shares were down 1.3% in early afternoon trade while the Nikkei
225 index was flat.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

'This car crushes' Musk says, as Tesla launches faster Model S 'Plaid'

Tesla Inc (TSLA.O) delivered a high-performance version of its Model S on
Thursday, aiming to reignite interest in the nearly decade-old sedan and
fend off rivals such as Porsche, Mercedes-Benz and Lucid Motors in the
luxury electric vehicle market.

 

Tesla redefined electric cars in 2012 when it launched its high-end Model S
with a sleek design and long driving range, and Chief Executive Elon Musk
said the new version was designed for a future where cars drove themselves.

 

"This car crushes," Musk said at an evening delivery event held at Tesla's
U.S. factory in Fremont, California.

 

"It's like, man, this is, just, sustainable energy cars can be the fastest
cars, be the safest cars, gonna be the most kick-ass cars in every way."

 

Musk's irreverent attitude and speeches peppered with engineering terms,
have given him a star power he uses to draw attention to the brand, allowing
Tesla to avoid advertising.

 

The model is "faster than any Porsche, safer than any Volvo," said Musk,
wearing a black leather jacket, after he drove the Model S Plaid down a test
track onto the stage.

 

He said he expects to produce 1,000 a week next quarter.

 

Ahead of the event, Tesla raised the price by $10,000 to $129,990 against
$79,990 for a long-range Model S.

 

"The Model S has not been changing a lot in terms of looks over the past
almost decade," said Jessica Caldwell, executive director at car information
provider Edmunds. "I think Tesla has to offer consumers something more ...
like new and fun things."

 

The launch of the Model S Plaid, which has already been showcased online,
has faced delay and some controversy over an expected airplane-style yoke
steering wheel. Musk canceled another variant, Model S Plaid+, which would
have had a 33% higher driving range than the Model S Plaid and used advanced
battery technology, known as 4680 cells.

 

"The Model S Plaid is definitely intended to help reduce the migration of
current Tesla owners out of Tesla," said Ed Kim, vice president at
consultancy AutoPacific. "I think what we're seeing now is that Tesla can no
longer operate in a vacuum."

 

He said Model S Plaid is a low-volume, halo model aimed at showcasing the
automaker and generating excitement around the sedan, with Tesla needing to
successfully roll out new models like Cybertruck and Semi trucks to expand
its customer base.

 

Musk has called the Model S Plaid "the fastest accelerating car ever."

 

The more powerful sports sedan goes from zero to 60 miles per hour (97 kph)
in 1.99 seconds and has an estimated driving range of 390 miles (627.6 km).

 

While it offers little change in body style, the Plaid charges faster at
Tesla supercharger stations, has a roomier back seat and an improved
entertainment system, including what he said was the "level of a PlayStation
five."

 

"If we're thinking about the future where the car is often in autopilot to
full self driving mode, then entertainment is going to become increasingly
important. So you're going to want to watch movies, play games, use the
internet..."

 

Tesla delivered only 2,020 Model S/Xs in the first quarter, down from 18,920
the previous quarter, hampered by production delays.

 

Musk said in April that production of its new Model S and X would be
"contingent on global supply chain issues."

 

Tesla shares rose 1.9% on Thursday ahead of the evening event.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

BlackRock gets license to start China mutual fund business

BlackRock (BLK.N)has become the first global asset manager allowed to start
a wholly-owned onshore mutual fund business in China, as Beijing accelerates
opening of the $3.5 trillion industry.

 

BlackRock said on Friday its Chinese fund management unit had won approval
from the China Securities Regulatory Commission (CSRC) to start the
operation.

 

"China is taking significant steps in opening up its financial markets,"
BlackRock Chairman and Chief Executive Officer Larry Fink said in a
statement.

 

"We look forward to sharing our global investment expertise and offering
more differentiated investment solutions to Chinese investors."

 

China scrapped foreign ownership caps in its mutual fund and securities
sectors last April as part of an interim Sino-U.S. trade deal.

 

Several other global asset managers, including Fidelity International,
Neuberger Berman and Schroders, have also applied to set up wholly-owned
mutual fund business in China.

 

BlackRock's announcement came a month after it received a licence for a
majority-owned wealth management venture in China. The U.S. fund giant also
owns a minority stake in a mutual fund venture with Bank of China.

 

The regulatory approvals position BlackRock to extend the breadth of its
products and services and investment insights to all client segments across
China, BlackRock said on Friday.

 

"Rapid economic development and wealth accumulation in the world's second
largest economy have propelled growth of the domestic asset management
industry," Susan Chan, BlackRock's head of Asia, said in the statement.

 

"We are eager to play our part in helping to make investing easier and more
affordable" in China.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Signa Sports agrees to $3.2 bln SPAC deal, to buy Wiggle bicycle store

Signa Sports United, owned by Austrian investor Rene Benko, has agreed to a
U.S. listing through a blank-check merger that values the online sports
goods retailer at $3.2 billion, the company said on Friday.

 

The deal will raise $645 million for Signa Sports United, with $345 million
from special-purpose acquisition company (SPAC) Yucaipa Acquisition (YAC.N)
and $300 million from investors through private investment in public equity
(PIPE).

 

Signa, the global no.1 pure play online sporting goods retailer, will use
part of the proceeds to buy Britain-based bicycle goods store Wiggle, which
has annual sales of about $500 million, the company said in a statement.

 

"Becoming a listed company allows us to continue capturing market share in
Europe and to accelerate our U.S. and international expansion while scaling
our platform solutions," CEO Stephan Zoll said in the statement.

 

The Wiggle deal will make Signa Sports United about four times larger in the
sub-sector than runner-up Bike24, which is in the process of listing its
shares in Frankfurt.

 

Wiggle's owner, private equity firm Bridgepoint, will become an investor in
Signa Sports as part of the deal.

 

The SPAC listing values Signa Sports United at 1.6 times the $2 billion in
revenue it expects to post in its 2021/22 fiscal year ending in September.
That compares to a multiple of 2.7-6.5 times that online retail peers such
as THG (THG.L), Stitch Fix (SFIX.O), MyTheresa and Farfetch (FTCH.N) trade
at.

 

Signa explored a stock market listing in 2018 at a valuation of 1 billion
euros ($1.22 billion) but then opted for a fundraising, bringing in Asian
retailers Aeon Co Ltd (8267.T) and Central Group as well as German insurer
R+V, which will remain shareholders after the listing.

 

SPACs raise funds in an initial public offering to buy a private firm, which
then automatically gets a stock market listing.

 

Signa Sports United runs firms like bicycle online shops Fahrrad.de or
Bikester, tennis platforms Tennis-Point or Tennis Express, outdoor gear
retailers like Campz and team sport shops Outfitter and Stylefile.

 

The company operates more than 80 Web shops in 17 countries, reaching over 7
million online customers a year. Including its latest acquisitions, the
group expects adjusted core earnings of $70 million on sales of about $1.6
billion in its current fiscal year to September.

 

Signa Sports United plans to continue growing its revenues by more than 25%
annually and aims to triple its profit margin to 12%-15% in the long term,
banking on scale effects, pricing technology and the expansion of its
technology offering for third-party vendors.

 

After the Yucaipa deal, which is being organised by Citi (C.N) and Jefferies
(JEF.N), property investor Rene Benko's Signa Holding will own about 50% of
Signa Sports United.

 

($1 = 0.8206 euros)

 

Our Standards: The Thomson Reuters Trust Principles.

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

Dairibord

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


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