Major International Business Headlines Brief::: 12 June 2021

Sat Jun 12 08:03:58 CAT 2021

 <https://bullszimbabwe.com/> 

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

Major International Business Headlines Brief::: 12 June 2021

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

ü  McDonald's hit by data breach in Taiwan and South Korea

ü  Can mining save Cornwall's economy?

ü  From garden chairs to boxes: Five items in short supply

ü  UK economy grows in April as shops reopen

ü  UK space race investment 'is heating up'

ü  Virgin Atlantic explores 'flying taxi' partnership

ü  Bid to use criminal cash to refund scam victims

ü  UK economy grows in April as shops reopen

ü  Didi: Chinese ride-hailing giant files to go public in US

ü  Scottish food and drink sector criticise Australia trade deal

ü  Four directors call for Toshiba shake-up in revolt after explosive probe

ü  Bitcoin law is only latest head-turner by El Salvador's 'millennial' president

ü  G7 leaders agreed to keep the money taps open -source

ü  Wall St Week Ahead Fed meeting looms for stocks as inflation worries collide with 'Goldilocks' markets

ü  Exxon losing veteran oil traders recruited during past expansion -sources

 <mailto:info at bulls.co.zw> 

McDonald's hit by data breach in Taiwan and South Korea

McDonald's is the latest big company to be hit by a data breach that has exposed customers' details.

The world's biggest burger chain said cyber attackers had accessed a "small number" of files on customers in South Korea and Taiwan.

The breach included e-mail, delivery addresses and phone numbers - but not payment details.

A spokeswoman for the firm said it would take steps to "notify regulators and customers listed in these files".

The details of the breach, first reported by the Wall Street Journal, were discovered during an external investigation after unauthorised activity was spotted on the company's network.

The company said its "substantial investment" in cyber security meant it was identified quickly.

"These tools allowed us to quickly identify and contain recent unauthorised activity on our network. A thorough investigation was conducted, and we worked with experienced third parties to support this investigation," it said.

Operations at its restaurants were not affected by the hack.

The fast food firm did say, however, that personal data on employees was also accessed - although it did not say in which countries.

"In the coming days, a few additional markets will take steps to address files that contained employee personal data.

"Moving forward, McDonald's will leverage the findings from the investigation as well as input from security resources to identify ways to further enhance our existing security measures."

It's the latest big firm to be targeted by cyber attackers in recent weeks. Game publisher Electronic Arts (EA) said on Thursday that hackers had stolen valuable information including source code for games such as FIFA 21.

The chief executive of Colonial Pipeline also told senators this week that the decision to pay a $4.4m (£3.1m) ransom to hackers in Bitcoin in May was the "hardest decision" of his career. The majority of that money has since been recovered by the US Department of Justice.-BBC

Can mining save Cornwall's economy?

At an industrial site in central Cornwall there are a couple of boreholes, each just 12cm across but driven down a kilometre into the rock.

They are pumping up water containing what may turn out to be a magic ingredient when it comes to Cornwall's future.

It's lithium, the element that goes into making batteries, for electric cars amongst other things.

"It's going to be absolutely crucial for the green industrial revolution and we think we have decent resources of it," says Lucy Crane, from the company Cornish Lithium.

Two hundred years ago, this part of Cornwall was dubbed the richest square mile on earth thanks to its copper mines, says Lucy.

And these modern day prospectors are hoping that lithium represents a new green "gold in them there hills". But it will take a couple of years before Cornish Lithium's pilot projects can establish just how much is down there.

In the meantime, with the leaders of seven of the world's richest countries here, mapping out a recovery from the biggest global health and economic shock in over a century, Cornwall itself is at an economic crossroads, more acute even than for the rest of the UK.

Cornwall's economic past was built on centuries of mining and fishing wealth, and the seeds of new industries are being sown, but its lifeblood now is tourism.

But it was also the biggest recipient of European Union (EU) development money of any area in the UK and home to coastal communities that rely on EU customers for their livelihoods. So Cornwall is now facing huge post-Brexit challenges.

Mussels to Brussels?

Few sectors were hit harder by the impact of Brexit than fishing - in particular shellfish. The UK, in common with other non-EU countries, is now banned from exporting live unpurified mussels, scallops, oysters and clams into the EU - where 90% of them are bought and eaten.

Getting his mussels to Brussels has proved nigh on impossible for Martin Laity of Sailor's Creek Shellfish, and purifying them here in the UK pre-export terminally affects their shelf life.

"The mussels wouldn't survive the purification and the transit, if I was to send that to France now, 90% of them would be dead on arrival," says Martin.

The end of the Brexit transition period was catastrophic for Martin. His business disappeared on day one, he says. And while the government might be touting trade deals with countries like Australia or Canada, he can't imagine them replacing his lost markets, not least because they import very little shellfish.

"Also you have got to look at the sustainability angle - our oyster boats work with sail power and when you are told to sell your stuff 9,000 miles around the world, it goes against the grain of what you are trying to achieve," he says.

He also warns that a decline in fishing could undermine one of Cornwall's strongest attractions.

"The entire reason we have a tourism industry is because people like the ambience of what's happening - busy people working hard in a port - it attracts people from around the world to see that. They want to see character and our industry is character"

Holiday hoops

This summer Cornwall will attract more tourists than usual as disruption to travel takes the shine off holidays abroad.

And the view from Cornwall's number one tourist attraction is an optimistic one.

The Eden Project offers a glimpse of life from far-flung corners of the world, but it is nestled among the sheer walls of an old clay mine - another reminder of the region's foundations.

The site's interim chief executive David Harland hopes visitors will remember how much easier it is to holiday in the UK, without "all the hoops you have to jump through", and keep coming back.

But even then the region will still need support, he says.

"We are standing here in Cornwall in one of the few areas of economic deprivation left in England and what we are looking for right now is a roadmap towards genuine levelling up - to find ways to make sure the wealth is genuinely spread across the country," he says.

Handouts

The EU used to provide grants worth up to £100m a year over the last 20 years - including support for the Eden project. The government has promised that will be replaced by domestic grants from a new Shared Prosperity Fund - a pot of money available to all UK areas to which the chancellor has so far committed only £220m in total.

Tim Dwelly, former leader of the Labour Group on Cornwall Council fears that means his region will receive just a fraction of the money it used to receive.

"It is genuinely shocking to think that government expects Cornwall to gear up for these huge challenges with about 5% of the budget we need. This is not levelling up, it's levelling down," he says.

It means more hope than ever is being invested in new industries like lithium mining, and geothermal energy too. These industries have the potential to kill two economic birds with one stone - decarbonisation and levelling up, while reducing people's dependency on a sector that is both fickle and seasonal.

"One in five jobs in Cornwall depends on tourism and we need to change that," says Conservative MP for Truro and Falmouth, Cherilyn Mackrory. "We want a different Cornwall that isn't reliant on handouts."-BBC

>From garden chairs to boxes: Five items in short supply

Shortages of garden furniture, building supplies, cardboard and other packaging are causing a headache for business and consumers as summer looms.

A combination of problems - including port delays due to Covid measures, a surge in online orders during lockdowns, the burden of Brexit paperwork and disruption to the Suez canal - has increased competition for shipping container space and delayed delivery times.

Richard from Ilkley in West Yorkshire and his family are making do with camping chairs after his garden furniture order was delayed.

He is still waiting for a corner sofa, glass top table and three stools from furniture company Mattressman.

He paid £839 upfront in March and was told the furniture would arrive by 6 May.

"After contacting the company again to try to establish what was going on, we discovered that the furniture had arrived but was sitting in a shipping container, so we couldn't get a delivery date."

Richard, who has now been told his order will not arrive until August, said he was "very disappointed and upset".

Mattressman's spokesperson told the BBC: "It's an industry-wide shipping issue across the board and we're working closely with lots of suppliers to provide as much clarity as we possibly can."

The founder logistics app logistics app Annalise Davis said of the commodities she monitors, up to 94% are experiencing "extreme" port delays from mainland China.

More positive Covid cases have been identified in places such as Shenzhen, leading to tighter coronavirus measures at ports, according to a Maersk advisory.

2. Building supplies: 'I'm experiencing delays at all angles'

Chris Nutley, a building contractor based in Sussex, has been waiting for more than five months for an order to complete a new kitchen in his home.

"I'm experiencing delays at all angles at the moment, professionally and personally," he said.

Building materials are running short in the UK, putting construction companies under extra pressure.

Mr Nutley's firm is facing long waits for oak and timber imports due to a lockdown backlog and logistical problems from Brexit.

"There is currently more chance of buying an overpriced bag of cement on Facebook marketplace than at the usual merchant," Chris said.

Alex Veitch, general manager of policy at Logistics UK, said he was not surprised to hear there were some supply chain problems but said it was primarily due to businesses having to deal with extra administration.

"The paperwork required for these products is here to stay due to Brexit."

"Looking at evidence of the border flow, goods are moving well, but it's typically smaller businesses who have less experience with the paperwork, or have more complicated product ingredients, that are suffering more," he said.

But Mr Veitch said hold-ups caused by the Suez Canal jam and container delays between Europe and China were short-term problems which should be resolved in a few weeks.

3. Outdoor gear: 'We're paying $14,000 for shipping, up from $2,500'

Camping and outdoor clothing have also experienced delays. Rab and Lowe Alpine chief executive Matt Gower said the company was being hit "quite badly".

"Shipments that used to take four weeks, now take eight and many aren't even sailing to the UK anymore."

"Last June we paid $2,500 (£1,800) per 40ft container, now we're paying $14,000."

Mr Gower said products would have to go up in price in the spring because of this added freight cost.

4. Cardboard boxes: 'We've switched to plain brown stock boxes'

Popcorn shed

Wholesale popcorn business Popcorn Shed has had supply problems since January.

"We're not able to get brand-printed corrugated boxes from any of our UK suppliers", director Sam Feller said.

Before Covid and Brexit, branded boxes would arrive three or four weeks after the initial order, but now "delivery dates bear no resemblance to when the order turns up" Mr Feller said.

Often the delays have come with a price hike because cardboard box manufacturers say they cannot get the usual material.

"Brexit delays and Covid issues have culminated in a perfect storm," said Mr Feller.

"We've switched to plain brown stock boxes and are larger too which means more pollution and wastage as a result."

5. Packaging: 'We've had to use larger size trays'

Sushi restaurant Chisou has also had to cope with packaging shortages.

Its five sites in central London moved primarily to take-away during the lockdowns but the price of a tray and lid has risen from 15-20p to £1.

"We often use between 300 and 400 of these units a day per restaurant so can't afford that increase," said David Leroy, founder and managing director of Chisou.

After using the same takeaway packaging suppliers for more than 20 years, Mr Leroy said he had spent hours looking for alternatives but four out of five of them were out of stock.

"We've had to use larger size trays as those are all we can find, but this can cause issues when its being delivered as the food can move around and we don't want to start getting complaints," he says.

Prior to the lockdowns, Chisou had been trying to move to pulp and cardboard trays as this was more sustainable but have had to stay with the plastic trays.

"We wanted to choose a packaging option that's better for the planet but you've got to keep going as a business," Mr Leroy adds.-BBC

UK economy grows in April as shops reopen

The UK economy grew 2.3% in April, its fastest monthly growth since July last year.

Shoppers spent more on the High Street as non-essential shops reopened, and people bought more cars and caravans.

There was also more spending in pubs, cafes and restaurants as restrictions eased the Office for National Statistics (ONS) said.

Despite the surge in activity, the UK economy is still 3.7% below its pre-pandemic peak.

Construction fell in April, compared to strong growth the previous month, but the sector remains above its pre-pandemic peak.

Chancellor Rishi Sunak said that the figures were "a promising sign that our economy is beginning to recover".

Mr Sunak said more than one million people had come off the government's furlough scheme in March and April as businesses reopened.

Jonathan Athow, ONS deputy national statistician for economic statistics said: "Strong growth in retail spending, increased car and caravan purchases, schools being open for the full month, and the beginning of the reopening of hospitality all boosted the economy in April."

Yael Selfin, chief economist at KPMG UK, said shoppers flocked back to the High Street as households spent some of their savings on non-essential goods.

Spending in non-essential shops drove much of the growth as customers were allowed back into stores from 12 April in England, with clothes stores seeing a boost of 69.4%.

Overall growth in the services sector was 3.4%, although it remains 4.1% below pre-pandemic levels of February 2020.

This included restaurants, bars and cafes, where customers could eat and drink outdoors again, seeing a 39% rise in growth.

People also used the ability to travel across the country again, with activity at caravan parks and holiday lets growing 68.6%, while hairdressers and other personal services grew 63.5%.

A further relaxation of lockdown rules is planned for 21 June, which would let pubs, bars and restaurants increase the number of people allowed indoors.

But that is now looking increasingly unlikely which may put downward pressure on growth in the summer.

Regardless of any pause in reopening, Ms Selfin said economic activity levels in May and June would not rise at the same rate as the April rebound.

One of the ways the pandemic has turned normal assumptions upside down is that a shrinking economy can be the successful outcome of deliberate government policy.

The government wanted to suppress economic activity to combat the virus, the public largely abided by the restrictions, and the economy shrank.

Similarly when you ease restrictions, and that suppressed activity comes back, leading to the sort of growth in a month that you're more normally see in a year, it's a deliberate and predictable outcome of policy rather than a stellar economic performance.

The economy has been growing now since January. But the "bounceback" is slower than the 7.3% growth recorded in July 2020, when restrictions of much greater severity were being lifted.

And we still have a steep hill to climb. At the end of the first quarter of the year our economy had taken the biggest knock of all the G20 economies, in stark contrast to the likes of Korea, Australia, India or Turkey, which had already recovered beyond pre-pandemic levels.

The confident official prediction is that we're in for 7% growth this year which should boost that weak international performance. Let's hope that confidence isn't misplaced.

Miatta Fahnbulleh, chief executive of UK think tank New Economics Foundation, told the BBC the figures were in line with what was expected "which is a big bounce as the restrictions were eased and the economy starts going back to normal".

"But underneath this is probably going to be a story of two halves - the GDP numbers tell us the economy is recovering, but it's likely to be uneven, with the bounceback driven by parts of the economy that have essentially been insulated from the worst parts of the pandemic, and other parts of the economy - those with no work, or small businesses - really, really struggling, particularly as the government starts removing some [support] going into the autumn."

Trade disruptions

Separately, there is continued friction in trade with EU due to post-Brexit restrictions, although less than at the start of the year.

Mr Athow from the ONS said: "Exports of goods have now, broadly, recovered from the disruptions seen at the beginning of the year. However, imports of goods from the EU are still significantly down on 2020 levels".

Compared with three years ago - the last time trade was unaffected by either Covid or concerns of a disruptive Brexit - British goods exports to the EU this April were 7.1% lower and imports from the EU were 15.3% lower.

Exports to the EU were also below their average for 2019.

"That is a disappointing performance, given the boom in global trade flows; UK exporters have lost market share," said Samuel Tombs of Pantheon Macroeconomics.

Total imports of goods excluding precious metals in April rose 3.9% or £1.4bn, while exports fell slightly.-BBC

UK space race investment 'is heating up'

A UK firm that was the world's first dedicated space technology investor is preparing to list fund shares on the London Stock Exchange.

The public will be able to invest in a portfolio of new private space firms through Seraphim Capital's fund.

The news comes amid a public consultation on establishing a UK national space strategy.

The space industry is one of the UK's fastest growing sectors, worth £14.8bn a year.

The government said in March it wants to "make the UK a meaningful actor in space".

"There is a massive global appetite from investors, but the majority of new space companies are still private, from SpaceX downwards, so the public market struggles to invest in the space sector," Mark Boggett, chief executive of British venture capital firm Seraphim Capital told the BBC.

"This is the first time the public will be able to access a portfolio of private space companies," he said.

Seraphim Capital, one of the world's leading investors in space, is transferring all assets from its existing fund into the Seraphim Space Investment Trust.

It is raising £150m to invest both in its existing portfolio of firms and in new space start-ups.

'A digital platform in the sky'

Mr Boggett's view is that space is no longer just about rockets or satellites. "It is about a new digital platform in the sky," he said.

In recent months, there has been increased interest in the satellite industry, with tech firms like SpaceX and London-based OneWeb launching small satellites - known as nanosats - into low Earth orbit.

The plan is to use large constellations of nanosats to enable satellite internet, as well as collecting Earth observation data like weather, heat signatures and atmospheric gas composition to help farmers, for example, and to monitor things like flood defences, traffic and construction sites.

The idea is that nanosats will enable many smaller firms to gain access to space and benefit from space technologies.

"Make no mistake, this is a space industrial revolution," said Will Whitehorn, president of industry group UKSpace and chair of the independent board of the new Seraphim Space Investment Trust.

"The UK space space is heating up and it's also global. The UK needs to be at the forefront if it is going to thrive so that we don't get left behind."

Mr Whitehorn was previously president of Virgin Galactic, which is racing against Blue Origin to be the first company to offer human spaceflights.

Earlier this week, the Amazon founder said he and his brother would be on the first human flight launched by Blue Origin.

Another key topic is the creation of spaceports in the UK, says Mr Whitehorn.

"It will give the country its own sovereign launch capability," he said. "Instead of sending satellites to Russia or French Guiana or the US, we can literally send them down the road to Cornwall."

Daniel Smith is co-chair of the Scottish Space Leadership Council, a body that represents the views of industry, academia and government.

Mr Smith, who welcomes the Seraphim trust share listing announcement, helped to establish the UK Spaceports Alliance working group last year.

The Council's focus is on working with environmental groups to ensure that the UK space industry will grow in a way that supports the government's net-zero carbon emission ambitions.

"Launch is the missing piece of the jigsaw for the UK's vibrant space value chain [and] satellite data brings so many benefits to society and helps to monitor climate change, however the process of reaching orbit must be pursued in a way that contributes to net zero ambitions," he said.

"Our Sustainable Space Challenges initiative has brought together environmental organisations and space stakeholders for the first time to work proactively on ensuring the sector prioritises a sustainable approach."-BBC

Virgin Atlantic explores 'flying taxi' partnership

Virgin Atlantic is exploring whether it could launch a flying taxi service as part of a partnership with Bristol-based Vertical Aerospace.

The airline suggests electric vertical take-off and landing vehicles (eVTOL) could fly from towns to major airports.

Vertical Aerospace is conducting test flights of its aircraft this year.

One expert said the proposal was "less radical" than those of other air taxi companies, but argued there would be challenges ahead.

What is the idea?

Several companies have promoted the idea of autonomous "flying taxis" that could pick passengers up from rooftops in city centres and take them wherever they would like to go.

Virgin Atlantic's suggestion is slightly tamer.

It has proposed that an eVTOL aircraft could pick people up from a city such as Cambridge and fly them to a major airport such as London Heathrow.

Vertical Aerospace says its VA-X4 craft will be able to carry four passengers and a pilot up to 100 miles, as well as being emissions-free and quieter than a helicopter.

In fact the company claims it will be "near silent" when cruising.

It has already partnered with American Airlines and Avalon, an aircraft-leasing company.

Is it feasible?

"There's a lot of hype in this market," Vertical Aerospace president Michael Cervenka told the BBC.

"We have taken the approach that is pushing the bounds of what is available in terms of technology, but not going beyond."

With a 15m (49ft) wingspan, the aircraft would have to fly to and from designated spots such as helipads or regional airports.

As with any other aircraft, the VA-X4 will be subjected to strict safety and regulatory checks.

Dr Guy Gratton, associate professor of aviation and the environment at Cranfield University, said Slovenia's Pipistrel Velis gave a good indication of what a modern electric plane could achieve.

"The Velis will carry two people, half a toothbrush and fly for about an hour-and-a-quarter. That is a conventional plane and thus pretty efficient compared to anything with vertical take-off and landing," he explained.

While the VA-X4 will be quieter than a helicopter, the "rotors and wings would still make noise in forward flight", he added.

Mr Cervenka expects it will sound no louder than a refrigerator from the ground, when cruising overhead.

He said the company's goals could be achieved with today's technology rather than hoping for the invention of a "magical new battery".

But more lavish visuals of air taxis carrying passengers from one skyscraper to another would require new air-traffic control technology, public acceptance of more aircraft in cities, improvements in automation and regulatory change that could be a decade away.

On Thursday, Vertical Aerospace announced plans for the company to be floated on the New York stock exchange after a merger with Broadstone, in a deal valuing the company at $2.2bn (£1.6bn).-BBC

Bid to use criminal cash to refund scam victims

A policy of refunding scam victims using money from criminals' frozen bank accounts would be popular, a survey suggests.

The government is considering a proposal from banks that criminally-obtained funds are used to pay back other victims.

Three-quarters of those asked in the survey said they supported the idea.

But the amount frozen in these accounts would be vastly insufficient to cover the bill.

Pandemic scams

Last month, the BBC revealed data showing that various kinds of scams had surged during the coronavirus pandemic.

Online shopping scams, in which fraudsters posted bogus adverts for pets, cars and caravans, were up.

The YouGov survey of 1,700 people suggested that one in four adults are being bombarded with scam attempts on a daily basis, rising to nearly a third of over-65's.

It also suggested there would be public support for the idea - first proposed by banks - that suspected criminal funds should be used to repay victims, although this would fall far short of the hundreds of millions of pounds needed.

While total fraud in the UK reached £1.26bn last year, the amount in these frozen accounts was last estimated to be £130m.

Romance scams have also risen during the Covid crisis, affecting men and women of all ages.

Consumer group Which? said the true scale of the crime was likely to be much higher as many victims were too embarrassed or upset to tell the authorities.

In a report on economic crime by the government and the banking trade body, UK Finance, published last month, ministers said they were looking into the idea of using seized funds for reimbursement.

"The government is also working with the financial sector to unlock suspected criminal funds held in 'frozen' accounts across the financial sector," the report said.

"We will consider how these funds could be used, including whether suspended funds can be used to reimburse victims of fraud."

The burden of customer refunds when criminals hack into accounts to steal money falls on banks.

A code agreed between them, affecting customers of 19 financial brands, was signed in 2019 to ensure those caught out by so-called push payment fraud are refunded if they have done nothing wrong.

These are scams when victims are tricked into transferring money to a fraudster in the belief they are a legitimate trader or service.

However, banks failed to agree on a scheme designed to create a permanent, central pot of money to use for refunds.

Instead, they decided to pay for these reimbursements individually.-BBC

UK economy grows in April as shops reopen