Major International Business Headlines Brief::: 21 June 2021

[Bulls n Bears]

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Major International Business Headlines Brief::: 21 June 2021

 


 

 


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ü  Apple Daily: HK pro-democracy paper could 'shut within days', says
adviser

ü  Morrisons rejects £5.5bn offer from US private equity firm

ü  American Airlines to cut 1% of July flights as travel rebound strains
operations

ü  Dollar holds near multi-month high after Fed's hawkish tilt

ü  Asian stocks drop as Fed shift reverberates; Treasury yields slide

ü  Wall St Week Ahead Fed shift causes rally in value stocks to wobble

ü  Boral sells U.S. products business after rejecting Seven bid

ü  Ackman’s SPAC signs deal to buy 10% of Vivendi’s Universal

ü  Oil prices climb as Iran nuclear talks drag on

ü  In Indonesian banking, rise in religious conservatism ripples across
sector

ü  ECB makes good progress on new strategy, Lagarde says

ü  Kenya: Bounced Cheques Could Kill Tusky's Only Surviving Outlets

ü  Nigeria: Special Report - Lagos Communities Host Multi-Billion Naira
Investments but Have No Electricity

ü  Nigeria: Finally, Emirates Concedes, Nigerians Can Now Travel Directly to
Dubai

 

 

 

 

 

 

 

 


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Apple Daily: HK pro-democracy paper could 'shut within days', says adviser

Hong Kong pro-democracy paper Apple Daily could be forced to shut down in a
"matter of days", said an adviser of the paper's jailed founder Jimmy Lai.

 

Authorities last week froze HK$18m ($2.3m; £1.64m) of assets owned by three
companies linked to Apple Daily.

 

Mark Simon told the BBC that the paper could "do nothing while none of its
bank accounts are functioning".

 

Apple Daily, a well-read tabloid, is frequently critical of Hong Kong and
mainland Chinese leadership.

 

"If you don't have money you can't order services. Most importantly, you
can't promise to pay people when you don't have access to the cash to cover
those expenses. That's illegal in Hong Kong," said Mr Simon.

 

"The paper is still on the news stands today but it is only a matter of days
before it won't be there unless its bank accounts are unfrozen."

 

The paper's publisher, Next Digital, is holding a board meeting on Monday to
discuss the paper's future.

 

Apple Daily had on Sunday said it only had enough cash to continue normal
operations for "several weeks".

 

Last Thursday, some 500 police officers raided the offices of Apple Daily in
Hong Kong, saying its reports had breached the national security law.

 

Police also arrested the editor-in-chief and four other executives at their
homes and froze HK$18m ($2.3m; £1.64m) of assets owned by three companies
linked to Apple Daily - Apple Daily Limited, Apple Daily Printing Limited
and AD internet Limited.

 

Photos published online by Apple Daily showed police going through
reporters' computers.

 

In a statement, police said their warrant "covered the power of searching
and seizure of journalistic materials".

 

In a press briefing later that day, police said that Apple Daily had
published more than 30 articles calling on countries to impose sanctions on
Hong Kong and mainland China since 2019.

 

Jimmy Lai, the paper's founder, is currently in jail for a series of
charges, including participating in an unauthorised assembly in 2019.

 

Who is Jimmy Lai?

Lai is one of the most prominent supporters of Hong Kong's pro-democracy
movement.

 

Estimated to be worth more than $1bn (£766m), he made his initial fortune in
the clothing industry and later ventured into media and founded Next
Digital.

 

In May, authorities froze assets belonging to Lai, including his bank
accounts and his stake of 71.26% in Next Digital - estimated to be worth
$45m.

 

Banking giants HSBC and Citibank were also sent letters by Hong Kong's
security chief, who threatened up to seven years' jail for any dealings with
Mr Lai's accounts in the city.

 

In his last interview with the BBC before he was sentenced to jail, he said
he would not give in to intimidation.

 

"If they can induce fear in you, that's the cheapest way to control you and
the most effective way and they know it. The only way to defeat the way of
intimidation is to face up to fear and don't let it frighten you," he said.

 

What's the background to this?

The national security law was introduced in 2020 in response to massive
pro-democracy protests that swept the city state the previous year.

 

It essentially reduced Hong Kong's judicial autonomy and made it easier to
punish demonstrators. It criminalises secession, subversion and collusion
with foreign forces with the maximum sentence life in prison.

 

Beijing said the law would target "sedition" and bring stability, but
critics have said it violates the agreement under which Britain handed back
Hong Kong to China in 1997.

 

Since the law was enacted in June, more than 100 people have been arrested
under its provisions, including Lai.—BBC

 

 

Morrisons rejects £5.5bn offer from US private equity firm

Morrisons has rejected a £5.5bn takeover proposal from US private equity
firm Clayton, Dubilier & Rice.

 

The UK's fourth-largest supermarket, with 118,000 staff, said the offer
"significantly undervalues" the firm.

 

CD&R, where former Tesco boss Sir Terry Leahy is an advisor, confirmed it
was considering a formal bid after weekend media speculation about its
plans.

 

The US firm has previously made investments in the discount shop chain B&M,
from which it made more than £1bn.

 

Morrisons said in a statement it had "evaluated the conditional proposal
together with its financial adviser, Rothschild & Co, and unanimously
concluded that the conditional proposal significantly undervalued Morrisons
and its future prospects".

 

CD&R's proposal, worth 230 pence a share, does not constitute a formal
offer, and under UK takeover rules it has until 17 July to announce a firm
intention to bid or walk away.

 

The move by CD&R, one of the biggest takeover firms in the world, would have
been one of the most high profile of many bids for UK companies in the past
year.

 

BBC business correspondent Katie Prescott said the flurry of takeover
activity was being fuelled by relatively low share prices of businesses in
the UK compared to abroad and cheap money because of low interest rates.

 

CD&R has this year agreed a £2.8bn takeover of UK healthcare group UDG, and
a £308m bid for the plumbing group Wolseley.

 

In February, Zuber and Mohsin Issa and private equity firm TDR Capital
purchased a majority stake in Asda from Walmart in a deal valuing the UK
supermarket group at £6.8bn.

 

That deal followed Sainsbury's failure to take over Asda, which was blocked
by the competition regulator.

 

Morrisons - with its 500-store property portfolio, most of which it owns
outright - and its 10% of the grocery market - is an attractive proposition.

 

There has been speculation about bids for Morrisons in the past from Amazon,
which sells the supermarket's products on its site.

 

According to the Financial Times, which along with Sky News, first revealed
details of CD&R's intentions, the US buy-out firm approached Morrisons on 14
June. In addition to the cash offer, CD&R would take on Morrisons' £3.2bn of
debt, taking the total value of any deal to almost £9bn.

 

A formal bid from CD&R could involve Mr Leahy, who when at Tesco was the
boss of Andrew Higginson and David Potts, now Morrisons' chairman and chief
executive respectively.

 

Last month, Morrisons said sales had increased by 2.7% in the 14 weeks to 9
May. But in the previous three months alone it had faced a £27m bill for
Covid-related costs.

 

Earlier this month, Morrisons was rebuked by investors over executive pay,
with more than 70% of votes cast at its annual shareholders' meeting
rejecting its pay report.-BBC

 

 

 

American Airlines to cut 1% of July flights as travel rebound strains
operations

(Reuters) - American Airlines (AAL.O) on Sunday said it would cancel around
1% of its flights in July to serve a surprise uptick in travel demand at a
time when the airline struggles with unprecedented weather and a labor
shortage at some of its hubs.

 

American Airlines said the move would bring additional resilience and
certainty to its summer operations.

 

"(We) feel these schedule adjustments will help ensure we can take good care
of our customers and team members and minimize surprises at the airport,"
the company said in a statement.

 

The airline said its cancellations were targeted at impacting the smallest
number of customers "by adjusting flights in markets where we have multiple
options for re-accommodation."

 

The announcement was first reported by the WSJ.

 

Airlines and other transportation operators have seen a quick ramp up in
demand as U.S. COVID-19 vaccination rates increased and travel restrictions
lifted in recent weeks.

 

According to data from the U.S. Transportation Security Administration,
nearly 50 million airport passengers were registered in May, up 19% from
April. So far in June, the TSA has registered nearly 35 million air
passengers.

 

American Airlines said the incredibly quick ramp up of customer demand also
came at a time when bad weather caused multi-hour delays over the last few
weeks, disrupting flight and crew work hours. The company said some of its
vendors were also struggling with labor shortages, impacting the airline's
operations.

 

The Thomson Reuters Trust Principles.

 

 

 

Dollar holds near multi-month high after Fed's hawkish tilt

(Reuters) - The dollar held near multi-month peaks against other major
currencies on Monday, after the U.S. Federal Reserve surprised markets last
week by signalling it would raise interest rates and end emergency
bond-buying sooner than expected.

 

The dollar index , which tracks the greenback against six major currencies,
stood at 92.232 after gaining 1.9% last week, its biggest rise since March
2020.

 

On Friday, it jumped above key resistance around 91.95, marking a 61.8%
retracement from its decline to 89.53 earlier this month from an April peak
of 93.439.

 

"Like many, I had expected the 61.8 Fibonacci retracement in the dollar
index to hold for a bit ... and at least see some consolidation," said Chris
Weston, the head of research at Pepperstone Markets Ltd, a foreign exchange
broker based in Melbourne.

 

"That wasn't to be, and it seems technical resistance means very little when
this type of re-positioning event plays out."

 

The euro traded at $1.1872 , having hit a 2 1/2-month low of $1.1847 on
Friday.

 

The British pound fetched $1.3809 , standing near Friday's two-month low of
$1.3791.

 

The Australian dollar wobbled at $0.7503 , having dropped to as low as
$0.7478, a low last seen in December.

 

The safe-haven yen held firmer as the Fed's tilt hit risk asset prices. It
ticked up to 110.185 yen to the dollar , pulling away from Thursday's 2
1/2-month low of 110.825

 

The jolt to foreign exchanges was triggered on Wednesday by Fed forecasts
showing 13 of the 18-person policy board saw rates rising in 2023, versus
only six previously, with the median board member tipping two hikes in 2023.
read more

 

Investors' risk appetite took another hit after St. Louis Federal Reserve
President James Bullard said on Friday that the U.S. central bank's shift
toward a faster tightening of monetary policy was a "natural" response to
economic growth and particularly inflation moving quicker than expected as
the country reopens from the coronavirus pandemic.

 

"The Fed's latest dot plot was a meaningful surprise. In a scenario where
markets continue to move Fed pricing in a hawkish direction, we could
envision the euro/dollar falling an additional 2%, if European rates remain
about unchanged," wrote analysts at Goldman Sachs.

 

But they also noted they do not expect a sustained dollar either, noting
that other central banks will need to consider policy normalisation as their
economies recover from depressed levels.

 

In cryptocurrencies, bitcoin stood at $35,689 , while ether changed hands at
$2,241 , both paring losses made during the weekend to stand little changed
from Friday's closing levels.

 

The Thomson Reuters Trust Principles.

 

 

 

Asian stocks drop as Fed shift reverberates; Treasury yields slide

(Reuters) - Asian stocks dropped on Monday as investors mulled the
implications of a surprise hawkish shift last week by the U.S. Federal
Reserve, while the Treasury yield curve flattened further with 30-year
yields dropping below 2%.

 

Japan’s Nikkei (.N225) led declines with a 3.3% drop and dipped below 28,000
for the first time in a month, while MSCI’s broadest index of Asia-Pacific
shares outside Japan fell 1% in early trading.

 

Chinese blue chips (.CSI300) opened 0.4% lower, and Australia's benchmark
(.AXJO) slid 1.8%.

 

Benchmark 10-year U.S. Treasury yields fell to the lowest since early March
at 1.4110%, while those on 30-year bonds slid as low as 1.9990% for the
first time in more than four months.

 

The yield curve - measured by the spread between two- and 30-year yields -
was the flattest since early February.

 

The U.S. dollar hovered near the 10-week high touched on Friday versus major
peers , following its biggest weekly advance in more than a year.

 

"The story of last week was arguably the one-way move in the USD, which
morphed into a clear de-grossing through equity markets, with the 'value'
parts of the market really getting clobbered," Chris Weston, the head of
research at Pepperstone Markets Ltd, a foreign exchange broker based in
Melbourne, wrote in a client note.

 

"It feels that the pain trade is for further strength in the USD, higher
real rates, and a flatter Treasury curve, with the market continuing to see
the reflation trades unwound."

 

Shares of banks, energy firms and other companies that tend to be sensitive
to the economy’s fluctuations have fallen sharply following the Fed’s
meeting on Wednesday, when the central bank caught investors off guard by
anticipating two quarter-percentage-point rate increases in 2023 amid a
recent surge in inflation.

 

St. Louis Fed President James Bullard further fuelled the sell-off on Friday
by saying the shift toward faster policy tightening was a "natural" response
to economic growth and particularly inflation moving quicker than expected
as the country reopens from the coronavirus pandemic.

 

Several Fed officials have speaking duties this week, including Chair Jerome
Powell, who testifies before Congress on Tuesday.

 

The MSCI world equity index, which tracks shares in 45 nations, fell another
0.2% on Monday, extending its retreat from a record intraday high reached
Tuesday.

 

U.S. stock futures pointed to further selling when Wall Street reopens,
easing 0.2% after Friday's 1.3% slide in the S&P 500 (.SPX).

 

In commodities, gold rebounded 0.6% to $1,773.12 an ounce on Monday, looking
to snap a six-day losing streak, but still remained near the lowest since
early May, pressured by a stronger dollar.

 

Crude oil rose for a second day, with the initial move triggered by OPEC
sources saying the producer group expected limited U.S. oil output growth
this year despite rising prices.

 

Brent crude futures rose 46 cents to $73.97 a barrel, while U.S. West Texas
Intermediate (WTI) crude rose 55 cents to $72.19 a barrel.

 

The Thomson Reuters Trust Principles.

 

 

 

Wall St Week Ahead Fed shift causes rally in value stocks to wobble

(Reuters) - The Federal Reserve’s hawkish shift is forcing investors to
reevaluate the rally in so-called value stocks, which have taken a hit in
recent days after ripping higher for most of the year.

 

Shares of banks, energy firms and other companies that tend to be sensitive
to the economy’s fluctuations have tumbled following the Federal Reserve’s
meeting on Wednesday, when the central bank surprised investors by
anticipating two quarter-percentage-point rate increases in 2023 amid a
recent surge in inflation.

 

The Russell 1000 Value Stock Index (.RLV) is down 4% from its June peak,
though still up 13.2% this year. Its growth counterpart (.RLV) is up 9.1%
year-to-date.

 

One factor driving the move is the idea that a Fed more strongly focused on
preventing the economy from overheating may begin unwinding easy-money
policies sooner than previously expected. On Friday, St. Louis Federal
Reserve President James Bullard said the central bank’s shift was a
"natural" response to economic growth and inflation moving quicker than
expected, bolstering that view.

 

“Value stocks had gotten ahead of themselves, particularly in energy and
financials, and the folks that are caught offsides are starting to unwind
those trades,” said Jamie Cox, managing partner at Harris Financial Group.

 

The post-Fed meeting slide in value has been accompanied by a retreat in
some commodity prices, a surge in the dollar and a rally in U.S. government
bonds that dragged down yields on the benchmark U.S. Treasury to around
1.44% on Friday afternoon.

 

Investors will be keeping a close eye on next week’s economic data for clues
on whether the recent surge in inflation -- which saw consumer prices
accelerate at their fastest pace in 12 years last month -- will persist.

 

New home sales and mortgage applications are due out June 23, while May
consumer spending numbers are expected on June 25.

 

Investors piled into value stocks in the latter half of 2020, as signs of
breakthroughs in vaccines against COVID-19 bolstered the case for a powerful
economic rebound in 2021. Value stocks have outperformed growth stocks by
nearly 7 percentage points since the start of November 2020, bucking a trend
that saw technology and other growth sectors regularly outshine value over
the last decade.

 

An unwinding of the heavy positioning in value shares could exacerbate the
recent slide. Mutual funds are overweight value names to a larger degree
than any time in the last eight years, according to a Goldman Sachs report
published on June 9.

 

Some big-name investors such as Cathie Wood, whose ARK Innovation ETF was
the top-performing U.S. equity fund last year, have suggested that growth
stocks will resume their market outperformance as investors rotate away from
value sectors such as energy that are up 38.5% since the start of the year.
L2N2NQ273 Wood’s flagship ETF is down 4.8% year-to-date.

 

Others, however, believe the recent wobble in value stocks is a pause,
rather than a turning point.

 

Cyclical companies remain the least over-valued in the U.S. stock market,
according to Jonathan Golub, chief U.S. equity strategist at Credit Suisse.
High sales-growth companies are trading at valuations nearly double their
10-year averages, while cyclical companies are trading at valuations
approximately 40% more than their historical levels, he wrote in a research
note.

 

The prospect of rising interest rates should also benefit higher quality
value stock names that held up better in last year's downturn but have
lagged during the recovery, said John Mowrey, chief investment officer at
NFJ Investment Group.

 

He has been increasing his positions in utility and consumer staples stocks
that have underperformed value stocks as a whole, betting that they will
increase their dividend payouts, which would make them more attractive even
if Treasury yields eventually rise.

 

Among his holdings are consumer companies Church & Dwight Co (CHD.N), which
is down 4% for the year to date, and McCormick & Company Inc (MKC.N), which
is down 9.7% for the year to date.

 

"The idea of dividend growth has been largely sidelined because we’ve all
been enjoying stock appreciation," he said. "We think this will be the next
leg of the value stock rally."

 

The Thomson Reuters Trust Principles.

 

 

Boral sells U.S. products business after rejecting Seven bid

(Reuters) - Australia's Boral Ltd (BLD.AX) said it would sell its North
American building products business to a unit of NYSE-listed Westlake
Chemical Corp (WLK.N) for $2.15 billion, throwing a spanner in the works of
a takeover bid by Seven Group (SVW.AX).

 

Boral's shares rose as much as 4% to A$7.06, their highest since October
2018, after the building and construction materials supplier revealed its
deal to sell the U.S.-based business in a disclosure responding to Seven's
bid.

 

Boral had already asked shareholders to reject an off-market zero premium
bid by Seven Group, a conglomerate controlled by Australian media owner
Kerry Stokes, saying it undervalued the company.

 

Seven owns 23.18% of Boral, and made the offer in May after failing to raise
its stake to 30% due to regulatory setbacks.

 

Seven Group said the business had been sold for a loss in a rushed response
to their offer.

 

"Our view is that Boral should have secured more. This business has been
outperforming while the Australian business is under-performing," a Seven
spokesperson said in an email.

 

One analyst said the U.S. deal would not have a great impact on Seven's
takeover attempt.

 

"Seven Group made a bid that was expected to get turned down to clear the
way for them to keep buying more," said Mathan Somasundaram, CEO at Deep
Data Analytics.

 

"Seven Group's historical trend in these scenarios suggests that they will
get as much as they are allowed and stay there as a blocking stake. When the
cycle turns weak, they will move in and take control gradually," he said.

 

Boral's shares have surged more than 30% this year, as monetary and fiscal
stimulus helped Australia's property market rebound from last year's
pandemic lows.

 

Boral CEO Zlatko Todorcevski said the company expected significant surplus
to be returned to shareholders from the sale, with its net debt target
falling from A$1.5 billion to A$1.3 billion.

 

($1 = 1.3330 Australian dollars)

 

The Thomson Reuters Trust Principles.

 

 

 

Ackman’s SPAC signs deal to buy 10% of Vivendi’s Universal

(Reuters) - Billionaire investor William Ackman’s Pershing Square Tontine
Holdings (PSTH.N) signed a deal to buy 10% of Universal Music Group (UMG),
Taylor Swift’s label, for about $4 billion, the companies said on Sunday.

 

"As announced, the transaction is based on an enterprise value of 35 billion
euros ($41.55 billion) for 100% of UMG's share capital," Vivendi said.

 

UMG, which is being spun-off by France's Vivendi (VIV.PA), will complete its
planned Euronext Amsterdam listing in late September, the media group said.

 

Tontine said it will distribute UMG shares to its shareholders only after
the completion of listing. "Promptly following the completion of the listing
and the effectiveness of the registration statement, the UMG shares acquired
by PSTH will be distributed to our shareholders."

 

Vivendi, controlled by French billionaire Vincent Bollore, is planning to
cash in on its UMG crown jewel by spinning off the entity to existing
shareholders.

 

Earlier this year, the consortium led by Tencent Holdings Ltd (0700.HK)
purchased an additional 10% stake in UMG making the total equity stake
controlled by the Chinese tech giant to 20%.

 

"The arrival of major American investors provides further evidence of UMG's
global success and attractiveness," Vivendi said.

 

Tontine said it will continue to exist as RemainCo after the transaction
with an access to about $2.9 billion in cash and intends to pursue a
business combination with an operating business promptly.

 

The blank-check firm, in its statement, pointed to UMG's operating profit
growth of more than 20% per annum since 2017 and analysts' estimation of
operating profit of 1.5 billion euros ($1.78 billion) for 2021.

 

Tontine became the biggest ever SPAC when it raised $4 billion in an initial
public offering (IPO) last summer, with Ackman's hedge fund Pershing Square
committing a minimum of an additional $1 billion.

 

($1 = 0.8424 euros)

 

($1 = 0.8423 euros)

 

The Thomson Reuters Trust Principles.

 

 

 

Oil prices climb as Iran nuclear talks drag on

(Reuters) - Oil prices rose on Monday, underpinned by strong demand during
the summer driving season and a pause in talks to revive the Iran nuclear
deal that could indicate a delay in resumption of supplies from the OPEC
producer.

 

Brent crude for August gained 35 cents, or 0.5%, to $73.86 a barrel by 0344
GMT. U.S. West Texas Intermediate (WTI) crude for July was at $72.05 a
barrel, up 41 cents, or 0.6%.

 

Both benchmarks have risen for the past four weeks amid optimism over the
pace of global vaccinations and a pick up in summer travel. The rebound has
pushed up spot premiums for crude in Asia and Europe to multi-month highs.
read more

 

"The rebound in demand in the northern hemisphere summer is so strong that
the market is becoming increasingly concerned about further sharp drawdowns
on inventories," ANZ analysts said in a note.

 

Negotiations to revive the Iran nuclear deal took a pause on Sunday after
hardline judge Ebrahim Raisi won the country's presidential election. Two
diplomats said they expected a break of around 10 days. read more

 

The election could delay the nuclear deal as Iran has insisted that U.S.
sanctions placed on Raisi be removed before an agreement is reached,
analysts from ANZ, Commonwealth Bank of Australia and ING said.

 

However, CBA analyst Vivek Dhar said Raisi's win is unlikely to derail
efforts to revive the nuclear deal given the potential economic windfall for
Iran if sanctions are lifted.

 

Oil prices are also drawing support from forecasts for limited U.S. output
growth.

 

OPEC officials have heard from industry experts that U.S. oil output growth
will likely remain limited in 2021 despite rising prices, OPEC sources said
last week, giving the group more power to manage the market in the short
term before a potentially strong rise in shale output in 2022. read more

 

"We expect strong demand and supplies to be tight," Phillips Futures analyst
Avtar Sandu said, adding investors were looking to the next meeting of the
Organization of the Petroleum Exporting Countries with its allies for supply
outlook.

 

Higher U.S. refinery processing rates have narrowed front-month WTI's
discount to Brent to under $2 a barrel for the first time since November,
limiting U.S. crude exports to global markets, analysts said.

 

Still, U.S. oil rig count, an early indicator of future output, rose by
eight last week to 373, the highest since April 2020, data from energy
services firm Baker Hughes Co showed.

 

The Thomson Reuters Trust Principles.

 

 

 

In Indonesian banking, rise in religious conservatism ripples across sector

(Reuters) - A rise in religious conservatism in Indonesia is drawing talent
away from what some view as un-Islamic jobs in banking, industry
professionals say, creating hiring woes for conventional banks but a boon
for the country's fledgling sharia finance sector.

 

The trend comes amid broader societal change in the world's biggest
Muslim-majority country, driven by millions of young, 'born-again' Muslims
embracing stricter interpretations of Islam. [https://reut.rs/3aMab6D]

 

Reuters spoke to a dozen industry sources over how concern about Islamic law
barring exploitative interest payments, known as "riba", is reverberating
through the world of Indonesian finance.

 

Since 2018, hiring for banks and fintech companies in peer-to-peer lending,
payments and investment platforms has been more challenging, said Rini
Kusumawardhani, a finance sector recruiter at Robert Walters Indonesia.

 

"Roughly speaking 15 out of 50 candidates" would refuse a job within
conventional banking and peer-to-peer lending, she told Reuters. "Their
reason was quite clear-cut. They wanted to avoid riba."

 

Islamic scholars do not all agree on what constitutes riba. Some say
interest on a bank loan is an example, but others say that while such loans
should be discouraged, they are not sinful.

 

"It's so common that the stigma is if one borrows it's identical with riba,"
Finance Minister Sri Mulyani Indrawati told a webinar on the Islamic economy
earlier this year. "But loans are allowed in the Koran as long as they're
taken carefully and they're recorded correctly."

 

Islamic banking accounts for just over 6% of the roughly $634 billion assets
in Indonesia's banking industry - but has seen tremendous growth in recent
years. Savings in Islamic banks jumped 80% from end-2018 to March 2021,
outstripping the 18% growth in conventional counterparts, while financing
also grew faster than conventional loan growth.

 

WORSE THAN ADULTERY

 

Exactly how many have left Indonesia's conventional banking sector is
unclear. Statistics show a gradual employment drop, but this may also
reflect digitalisation or coronavirus pandemic-related layoffs.

 

As of February, there were 1.5 million people overall employed in finance
and the sector offered Indonesia's third-highest average salary, government
data showed. The sector employed 1.7 million in 2018.

 

For 36-year-old Syahril Luthfi, finding online articles labelling riba as
"tens of times more sinful than committing adultery with your own mother"
was enough to persuade him to quit his conventional bank job and move to an
Islamic lender, he said.

 

Concerns over the issue have helped create online support groups for former
bankers, including XBank Indonesia, which claims nearly 25,000 active
members on a messaging platform and has an Instagram account with half a
million followers.

 

Its chairman, El Chandra, said in an email the community was founded in 2017
to support those facing challenges quitting a financially supportive, but
un-Islamic job.

 

"To decide to quit a riba-ridden job is not easy, many things must be taken
into consideration," said Chandra, who said some branded those who quit as
stupid or radical.

 

XBank Indonesia advises people against taking out mortgages and other loans.
But it's hard to measure the impact on demand for banking products among the
so-called "hijrah" movement of more conservative young, middle-class
Indonesians now embracing Islam - many already didn't use banks to the
extent Western peers might.

 

BUSINESS OPPORTUNITIES

 

Sunarso, president director of Indonesia's biggest lender by assets, Bank
Rakyat Indonesia (BRI) (BBRI.JK), acknowledges people had left jobs at
financial institutions he has worked at for religious reasons.

 

However, he views the hijrah trend as an opportunity for sharia finance,
explaining how it determined a decision to merge the Islamic banking units
of BRI and two other state-controlled lenders in February to form the
country's biggest Islamic lender, Bank Syariah Indonesia (BSI) (BRIS.JK).

 

BSI's chief executive Hery Gunardi told Reuters it planned to cater to the
growing community of more religious millennials in a bid to double its
assets.

 

In fintech, some startups have also been trying to align with Islam, to tap
a bigger slice of Indonesia's multi-billion dollar internet economy.

 

Dima Djani, founder of Islamic lending startup ALAMI, expects Islamic
financial products to really take off in two to three years as the hijrah
movement matures, impacting people's "lifestyle, their looks, their food and
their travel" as they learn more about their religion.

 

"But in the end, as they continue to learn and shift their behaviour ...
they will shift their finances," added Dima, who previously worked at
foreign banks. He said due to high demand, he planned to expand ALAMI into
an Islamic digital bank later this year.

 

($1 = 14,250.0000 rupiah)

 

The Thomson Reuters Trust Principles.

 

 

ECB makes good progress on new strategy, Lagarde says

(Reuters) - European Central Bank policymakers meeting this weekend made
“good progress” in reshaping the ECB’sstrategic goals, including the role it
plays in fighting climate change and a revised approach to inflation,
President Christine Lagarde said on Sunday.

 

The 25 members of the ECB's Governing Council gathered in a hotel near
Frankfurt to add impetus to the bank's first review of its approach to
monetary policy in nearly two decades, which it aims to conclude in the
second half of the year.

 

Lagarde gave no detail of the outcome of the talks, saying only that they
covered the ECB's inflation goal and time horizon, links between climate
change and monetary policy and the modernisation of central bank
communications.

 

"I am glad we were able to have in-depth discussions and we made good
progress in shaping the concrete features of our future monetary policy
strategy," Lagarde said in a statement after the three-day gathering.

 

Started in early 2020 and then delayed due to the coronavirus pandemic, the
overhaul has fuelled a public debate among policymakers.

 

The ECB's elusive inflation goal, currently set "below but close to 2%",
seems almost certain to get a facelift and be set at 2%, with a tolerance
for overshooting after periods of sluggish price growth.

 

The ECB could also look at alternative inflation measures to take account of
rising housing costs for households, and even calculate its own inflation
figures - though, with inflation having lagged below target goal for a
decade, that might risk giving the impression of massaging numbers.

 

Climate change, a factor Lagarde is keen to incorporate, is likely to become
part of the central bank’s considerations in some form, potentially by
skewing its bond purchases to favour companies that have a lower carbon
footprint or are making an effort to reduce it.

 

 

The Thomson Reuters Trust Principles.

 

 

Kenya: Bounced Cheques Could Kill Tusky's Only Surviving Outlets

When five former workers tried to attach Tuskys Supermarkets' assets last
year to recover a Sh3.9 million court award, the retailer called a ceasefire
and offered to pay the amount in instalments.

 

In October, last year, Tuskys gave cheques to Daniel Njuguna Chege, Charles
Akwava Andrew, Timothy Mutegi, Peter Thuvu and Victor Kegode as part of the
first instalment.

 

But the cheques bounced, and the irked former workers opted to proceed with
attaching Tuskys' assets to get their dues.

 

In a last-ditch effort to save itself, Tuskys asked labour relations judge
James Rika to suspend the planned auctions, arguing that the retailer's
assets are protected by orders issued in an insolvency case filed at the
commercial division of the High Court.

 

In what could deal a massive recovery setback to Tuskys, the five former
workers have now been allowed to sell some of the retailer's assets to
recover their terminal benefits totalling close to Sh4 million.

While Sh3.9 million was not an amount to threaten Tuskys a few years ago,
the retailer is undergoing tough times that could see it collapse.

 

Tough economic times

 

Poor management and tough economic times have ensured that Tuskys can barely
define itself as a supermarket chain.

 

Most of the 60 branches it had across East Africa have been closed on
account of rent default, leaving only about five operational branches.

 

But Justice Rika ruled that assets the five former workers are looking to
attach are not protected by the insolvency petition against Tuskys that is
currently before the commercial and admiralty division of the High Court.

 

When Mr Chege, Mr Andrew, Mr Mutegi, Mr Thuvu and Mr Kegode sued Tuskys at
the labour relations division of the High Court for unfair dismissal in
2016, the retailer was represented by Kanchory & Company Advocates.

But after the five former workers won and sought to attach some of Tuskys
assets to recover the Sh3.9 million court award, O&M Advocates filed an
application before the labour relations court to protect the retailer's
assets.

 

O&M Advocates is representing Tuskys in the insolvency petition, where
dozens of creditors are looking to have the retailer liquidated and have
whatever is left of the shell directed to offsetting part of the nearly Sh8
billion owed.

 

Tuskys told Justice Rika that allowing an auction could deal a deathblow to
the retailer, and that such action could scuttle the plan.

 

Justice Rika found that there is no evidence that O&M had followed the usual
court procedure in taking over the employment case from Kanchory & Company
Advocates.

The judge also held that the assets the former workers have been allowed to
sell are not affected by the insolvency case against Tuskys.

 

The judge delivered his decision after the five former workers revealed that
Tuskys in October, last year, offered staggered payment to settle the debt.

 

But the cheques bounced, an indication that there was no money in the bank
accounts Tuskys was looking to get money from.

 

Under Kenyan law, it is a criminal offence to issue a bouncing cheque, but
it is not yet clear whether Tuskys will be cited for its move.

 

"Judgment as stated by both parties was delivered in favour of the
claimants. Execution commenced and certain assets of Tusker Mattresses
Limited were attached. The parties agreed on the mode of payment of the
decrial sum, and Tusker Mattresses issued cheques, which were dishonoured,"
Justice Rika said.

 

"The assets have already been attached, earmarked for sale, to satisfy
decree, following a separate judicial process, and are to be dealt with to
the conclusion of the existing judicial process. The assets are under the
jurisdiction of the employment and labour relations court. They have already
been designated for sale. There are orders attaching those assets, issued by
the employment and labour relations court. The assets are not available for
redistribution at any other forum," the judge added.

 

The five former workers resigned from Tuskys in 2016, accusing the retailer
of creating a hostile working environment.

 

Hostile working environment

 

Tuskys argued that the workers opted to resign when they were asked to
attend training aimed at improving their output.

 

The retailer added that it placed an offer to settle the workers' terminal
dues when they resigned. The workers allegedly declined the offer and sued.

 

Justice Stephen Radido heard the case and dismissed the workers' claims that
being told to attend training created a hostile working environment.

 

The judge, however, said that the contract the workers had provided for
terminal benefits hence ordered Tuskys to honour that part of the contract.

 

The terminal dues of Sh3.9 million included one month's salary in lieu of
notice, and gratuity of 20 days' pay for every year worked.

 

The retailer was hoping to get Sh2 billion funding from a Mauritian investor
last year and which was expected to inject working capital into the
collapsing operations.

 

But the deal failed to materialise, and insiders have previously told the
Nation that Tuskys was unable to get all creditors to pause on debt claims
as was required in the contract for the Sh2 billion funding.-Nation.

 

 

Nigeria: Special Report - Lagos Communities Host Multi-Billion Naira
Investments but Have No Electricity

Some of the affected Lagos communities have been in darkness for 15 years.

 

Despite their communities hosting multi-billion-naira investments, residents
of over 40 communities in Ibeju-Lekki Local Government Area of Lagos have
continued to wallow in darkness.

 

The communities host the Lekki Free Trade Zone and the popular Dangote
refinery among other multi-billion-naira projects.

 

Former Lagos governor Bola Tinubu in 2006 launched the ambitious Lekki Free
Trade Zone, domiciled in Ibeju Lekki, as an agenda to turn the region into
one of the largest investment destinations in Africa.

At the ground-breaking on May 12, 2006, Mr Tinubu likened the creation of
the export free zone to one of the most effective strategies for
transforming a country like Nigeria from third to first world.

 

Since then, Ibeju-Lekki local government has seen the entry of huge private
investment and one of such is the much-celebrated Dangote Petrochemicals
Refinery, a $15 billion investment, reputed to the largest single-train
refinery in the world upon completion. The refinery sits on 6,180 acres
(2,500 hectares) of land.

 

Another is the Lekki Deep Sea Port, a $1.5 billion investment, which upon
completion is projected as one of the largest deep seaports in Sub-Saharan
Africa.

 

While residents and indigenes are happy to hear officials speak glowingly
about the potentials of these investments for economic growth, they are
worried that many communities in the local government still lack
electricity.

The affected communities include Tiye, Mobido, Idasho, Ilege, Magbon-Segun,
Idotun, Itokin, Lekuru, Ebute-Lekki, Okunraiye, Olomowewe, Origanrigan 1,
Origanriran 2, Oshoko, Lekki, Shiriwon, Ibekodo, Itamarun and Oniyanrin.

 

Others are Ogogoro, Igbolomi, Idata, Otoolu, Folu, Ikegun, Lepia, Okun-Ise,
Okun Abumiti, Igbogun, Obada, Ilagbo, Ide Island 1, Ide Island 2, Igbodola,
Batedo, Imobi-Oke, Imube-Omi, Ereke, Okegelu and Apakin.

 

The communities, according to the 2006 census, serve as homes to over a
hundred thousand people.

 

Bitter Tales

 

Many children living in various communities in Ibeju-Lekki do not believe
that there could be light from an electric bulb without the use of a
generator. Residents who spoke with our reporter narrated tales of woes and
the difficulties they face due to lack of electricity.

 

For a first time visitor, the presence of electric poles, a transformer and
electric cables may suggest that the communities in this local government
have electricity. The residents describe them as 'mere decorations.'

PREMIUM TIMES' findings revealed that the electric poles, transformer and
cables were brought in the year 2000 during the administration of President
Olusegun Obasanjo. Then, the community felt their years of darkness would
soon come to an end. That has, however, remained a pipe dream.

 

In early 2000, after the materials were brought, some of the communities had
limited power supply for a few years. Soon, the darkness returned fully and
that has remained the situation since then.

 

Our correspondent also gathered that their years of challenges vary. While
some of the communities have not had electricity for the past 15 years, some
residents said total darkness in their communities started about 10 years
ago.

 

On a recent afternoon in Lekuru community, Tawakalt Olayemi-Malik sat on a
wooden stool in front of her house. Placed before her was a carton of frozen
fish which she was about to roast. She picked up a fish, bent it, and used a
tiny bamboo stick to pierce the head and tail, forming a circular shape.

 

Next, Mrs Olayemi-Malik placed them on a net, on top of a huge metal
container. Beneath the container, fire from a coal pot blazed towards the
fish, roasting them.

 

This has been her new source of livelihood after her hairdressing business
crashed due to a lack of electricity, she told PREMIUM TIMES. Her 'bitter'
experience started 15 years ago after she got married to an indigene of
Lekuru community.

 

Before marriage, she could cater for her necessary needs with the income
from her hairdressing work. Back then, she had five apprentices but on
getting to Lekuru to live with her husband, they all left.

 

The total blackout in the community frustrated the business and that was
"the beginning of my predicament," she said.

 

"Most of the tools we use such as dryer, steaming machine and many more
require electricity to function. I have the tools but we cannot make use of
them because the community does not have electricity."

 

After losing all her apprentices, she abandoned the hairdressing job to
start petty trade. Still, it failed, she said.

 

"I later began a petty trade, took money from my savings to buy a generator
and freezer. After nine months, the generator got spoilt. I now live in
penury. People are working in the refinery adjacent to my house but I have
nothing to sell to them," she said, explaining why she turned to
charcoal-roasted fist business.

 

Atunrase Tolani, a barber in Tiye community, told PREMIUM TIMES that he has
not used government electricity since the past 11 years that he opened his
salon. He said 70 per cent of his income is spent on fuel.

 

"I spend an average of N4,000 daily on fuel. The youths in the communities
are tired of even agitating.

 

"We thought the establishment of companies like the seaport, refinery and
indomie will be of help to us but that is not it. We just continue to suffer
in darkness."

 

More travails

 

Residents told PREMIUM TIMES that even when efforts were made to get
transformers, electricity officials failed to connect them to the grid.

 

A fashion designer, Eleto Monsurah, lives at Origanrigan community. She said
she uses 'stove iron' to press her customers' clothes and 'it does not make
my work come out well.'

 

Taiwo Oti, an operative of the neighbourhood safety corps who lives in
Lekki, said lack of electricity has made the community unfavourable for
petty business despite the government's efforts to promote SMEs.

 

One of the youth leaders in Ibeju-Lekki, Muhammed Jamiu, said most of the
communities in the local government have been in darkness since 2005 and
efforts to find a solution to the challenges have been unsuccessful.

 

"The youths in the local government gathered ourselves in late 2009 to form
a group under the banner 'restore our light 2010'. We agitated and met with
various leaders but no result.

 

"The state governor earlier this year paid visit to Dangote Refinery and we
confronted him with our plight. He made a promise to look into the
electricity crisis but nothing has been heard," he said.

 

Disturbed communities' leaders

 

The leaders of the communities in Ibeju-Lekki accused the Lagos State
Government of marginalisation.

 

They wondered why communities that house multi-billion-naira investments
continue to live in darkness for several years despite visits by officials.
The leaders also called on the private investors to assist with electricity
restoration.

 

One of the leaders in Okunraye community, Ibrahim Adedeji, lamented the
situation.

 

"Both young and old are affected by a lack of electricity. Even some of us
that build house for business sake do not have tenants because nobody wants
to stay in an area without electricity. I have more than four spoilt
generators in my house because I overuse them.

 

"We are suffering and not happy that despite the state government officials
'visit to free zone, nothing is being done. They are always giving us excuse
which makes us doubt their love for the people."

 

The Baale of Tiye community, Kayode Mustapha, said his community has not
witnessed electricity for several years and his subjects are fast seeing him
as an incapable leader.

 

"While the rich are buying generators to light their houses, others knocked
at their doors at night to charge. Most people use electricity for their
work but they have been jobless because government fails to do what matter
to its citizens welfare."

 

Corroborating his colleague, the Baale of Origanrigan 2, Komolafe Babatunde,
said "the children we gave birth to in this community in the last 10 years
do not understand what is called NEPA light. The only understanding they
have is that electricity is generated through generator.

 

"Many visitors have left our community to other places where they can have
access to electricity. We are appealing to the state government to treat
this as a matter of urgency."

 

Group petitions Sanwo-Olu

 

As part of the effort to ensure that electricity is restored in the affected
communities, a group called Ibeju-Lekki Development Vanguard, last month,
petitioned Lagos Governor Babajide Sanwo-Olu.

 

The group said residents in Ibeju-Lekki are compelled to live under
17th-century conditions.

 

"If the government cannot fix its immediate basic need now, how can they
trust the government and its private sector friends to deliver jobs,
education, infrastructure, security, water etc. in the future?

 

"The time to fix the shameful blackout in Ibeju-Lekki communities is now!"
part of the petition seen by PREMIUM TIMES read.

 

"Earlier in the year, while on another facility tour at the Dangote Refinery
complex, we read with despair that you (Governor Sanwo-olu) were not aware
that a whole swath of land under your care does not have electricity for
years.

 

"We were comforted by your promise to take immediate steps and personally
ensure that the issue was resolved. But months thereafter, we are yet to see
any practical steps being taken.

 

"We believe that you have the capacity to ensure that the people of these
communities do not experience any further pain due to government neglect and
inaction. We hereby passionately demand from government a quick attention to
fixing the light in Ibeju-Lekki without any further delay."

 

Evasive Authorities

 

PREMIUM TIMES contacted the chairman of Ibeju-Lekki LCDA, Ogidan Olaitan,
for comments on our findings but he did not respond to calls and text
messages.

 

The lawmaker representing Ibeju-Lekki Local Government Area at the state
assembly, Raheem Kazeem, did not also respond to PREMIUM TIMES' enquiries.

 

In our first telephone interview with him, he told this newspaper to call
him back but he has since refused to respond to calls and text messages.

 

On his part, the senator representing Lagos East which covers Ibeju-Lekki,
Tokunbo Abiru, promised to do all required of him to ensure that the
communities have electricity.

 

His spokesperson, Enitan Olukotun, said "although the senator was recently
sworn in and he is not lacking in his responsibility of ensuring that there
is rural electrification in various communities, we have done a survey on
the needs of the people including those in Ibeju-Lekki. We know that
legislatures do not have budget but can only facilitate projects."

 

This newspaper also reached out to Olarere Odusote, the Lagos State
commisioner for energy. He did not respond to enquiries sent to him about
Ibeju-Lekki's electricity challenges.

 

The state information commissioner, Gbenga Omotosho, simply said "the
governor has ordered that they should go and fix the light. The government
has met wit the electrcity people... "

 

When questioned further on the precise steps that are being taken by the
government, he pleaded with PREMIUM TIMES for more time to get details from
the ministry of energy. Over three weeks later, Mr Omotosho has not
responded.

 

Last March, when Governor Babajide Sanwo-Olu visited the free trade zones in
Ibeju Lekki, he pledged to intervene in a six-year-long power outage in
eight communities namely Magbon Alade, Alasia, Orimedu, Eleko, Osa Oroko,
Ise, Akodo, and Solu.

 

Nigeria's electricity in a mess

 

Nigeria has a long history of not solving its electricity problems and
promises by successive governments to tackle this are yet to yield
significant results.

 

Ex-president Olusegun Obasanjo in 2006 said the country would be generating
10,000 megawatts (MW) of electricity by 2007 and 35,000MW by 2020. The
projection was later adjusted in 2009 by the late Umaru Yar'Adua who
modified the projections, placing installed capacity growth at 6,000MW to
20,000MW by 2015.

 

By the time President Goodluck Jonathan came on board, he launched a
privatisation exercise in 2013 with the mandate to increase power generation
and provide stable supply of electricity to Nigerians at affordable cost.

 

His administration split the Power Holding Company of Nigeria (PHCN) into
six generation companies (GenCos) and 11 distribution companies (DisCos)
handled by private investors while the federal government retained 100 per
cent ownership of the Transmission Company of Nigeria (TCN).

 

Many years later, most parts of the country still battle with the irregular
supply of electricity while many other communities have none at all, leading
to negative economic consequences.

 

Last year, the Minister of Power, Saleh Mamman, said the country had an
installed generation capacity of 13,000 megawatts but distributes less than
6,000MW. However, statistics provided by GET. Invest, a European programme
focused on renewable energy projects, said only 3,500 MW to 5,000 MW is
typically available for onward transmission to the final consumers in
Nigeria, less than a third of what is required.

 

This significant difference in production and distribution has been blamed
on the country's poor transmission and distribution network, incessant
collapse of the national grid and other factors.

 

Also, in spite of the poor distribution, electricity companies continue to
demand more increases in electricity tariff, saying the prices Nigerians pay
for electricity are not adequate to sustain the supply of electricity.

 

For the 40 communities in Ibeju-Lekki, however, the total lack of
electricity means there is no basis to discuss tariffs.

 

Affecting growth of SMEs

 

In April, the World Bank said Nigerian businesses lose $29 billion annually
to erratic power supply. This was contained in its Power Sector Recovery
Programme factsheet.

 

According to a senior energy specialist at the World Bank, Muhammad Wakil,
"Nigeria now has the largest number of 'unelectrified' people globally and
the trend is worsening. Of the electrified, the supply is very unreliable
with widespread blackouts."

 

He also said Nigeria now has 25 per cent more "unelectrified" people than
the second most unelectrified country in the world, the Democratic Republic
of Congo (DRC).

 

The bank also said between June 2020 and February 2021, its board approved
$1.25 billion financing to support the Nigerian government in its efforts to
reset the power sector.

 

Earlier in 2019, it said 80 million people in the country were without
access to electricity and millions more suffered from poor service.

 

A banker and development enthusiast, Wale Eleto, told PREMIUM TIMES that it
is sad that communities in Ibeju-Lekki are among places facing electricity
difficulties.

 

He also explained the danger of having huge investments strive while
small-scale businesses are collapsing.

 

"The World Bank has said that by 2030, there will be need for 600 million
jobs globally. It has also reminded us quickly that seven out of every 10
jobs will be provided by SMEs.

 

"Now, for an environment like Ibeju-Lekki, their strength will be SMEs. How
can we then have employment without electricity? How many other communities
are suffering like this? We have seen promises from successive governments
and nothing has been done.

 

"We are calling on authorities to do the needful without any further delay,
power must be restored in Ibeju-Lekki communities. We cannot afford the same
mess in Niger Delta where people are cheated on their lands and the debacle
in Apapa to happen in Ibeju Lekki."-Premium Times.

 

 

 

Nigeria: Finally, Emirates Concedes, Nigerians Can Now Travel Directly to
Dubai

Emirates Airlines will resume flights to Nigeria from June 23, five months
after it banned outbound flights from its Abuja and Lagos destinations. This
followed the withdrawal of the Rapid Antigen Test the United Arab Emirates
(UAE) had insisted passengers from Nigeria travelling to Dubai must take
four hours before boarding their flights.

 

In another development, the Federal Airports Authority of Nigeria (FAAN)
confirmed it had fixed the airfield light at the Murtala Muhammed
International Airport (MMIA), Lagos, Runway 18R, to enable flights land in
the night. Regional Terminal Manager in charge of MMIA, Mrs. Victoria
Shin-Aba, stated this on Saturday in an interview with THISDAY.

The UAE antigen test requirement was against Nigeria's policy that
passengers travelling out of the country should conduct Polymerase Chain
Reaction (PCR) test 72 hours before their flight.

 

But on Saturday, UAE issued a statement conceding that Nigerian passengers
that wished to travel to Dubai "must have received a negative test result
for PCR test taken within 48 hours before departure."

 

The statement posted on Instagram by the Dubai media office also said
passengers travelling from Nigeria should present a negative PCR test
certificate with a QR Code from labs approved by the Nigerian government. It
stated that all passengers must undergo a PCR test on arrival in Dubai,
adding, "Transit passengers should comply with entry protocol of final
destination."

 

The media office said the new regulation was part of measures aimed at
easing inbound travel restrictions by Dubai's Supreme Committee of Crisis
and Disaster Management. The committee introduced new entry protocols for
passengers effective June 23.

Besides the new condition for Nigerian travellers, UAE has new regulations
for passengers travelling from South Africa and India to Dubai.

 

For South Africa, the new rules stipulate that passengers should have
received two doses of a vaccine approved by UAE authorities.

 

"Passengers must present a negative test result for a PCR test taken within
48 hours before departure; UAE citizens are exempted. All passengers must
undergo a PCR test on arrival at Dubai airport. Transit passengers should
comply with entry protocols of final destination," the statement said.

 

For travellers from India, UAE said passengers should have received two
doses of a vaccine approved by UAE authorities and passengers must have
received a negative test result for PCR test taken within 48 hours before
departure, in addition to the other conditions given to Nigeria and South
Africa.

Confirming the withdrawal of the antigen test, Emirates Airlines issued a
statement signed by its management, which said, "Emirates welcomes the
latest protocols and measures announced by Dubai's Supreme Committee of
Crisis and Disaster Management to allow the safe resumption of passenger
travel from South Africa, Nigeria and India to Dubai. We look forward to
facilitating travel from these countries and supporting various travellers'
categories.

 

"We will resume carrying passengers from South Africa, Nigeria and India in
accordance with these protocols from 23rd June. We thank the Supreme
Committee for their continuous efforts in monitoring the development of the
situation and announcing the appropriate guidelines and protocols to protect
the community and safeguard travel sector."

 

Reacting to the new development, President of the National Association of
Nigeria Travel Agencies (NANTA), Mrs. Susan Akporiaye, said UAE had done
what the Nigerian government wanted. Akporiaye said the new development had
shown that no country could rubbish Nigeria if it insisted on a position
popular with its citizens.

 

The NANTA president said there would be a price to pay if a country stood
its ground, regretting that Nigeria had often tended to shy away from the
reality of that price.

 

Akporiaye stated, "Some of the prices include the fact that many Nigerian
students studying overseas that were due to travel back found it very
difficult doing so without Emirates flights from Nigeria. We travel agents
also paid a huge price because if Emirates flights were operating, we would
have made money; we wouldn't have been at the state we are now financially.

 

"We give kudos to the federal government and travel agencies. We will now
wait for the Nigerian Civil Aviation Authority (NCAA) to lift the ban on
Emirates."

 

UAE had made the Rapid Antigen Test compulsory for Emirates Airlines, which
was to start administering the test on Nigerian passengers from February 4,
2021. In response, the federal government temporarily banned the Middle East
carrier, insisting passengers travelling out of Nigeria are only required to
have PCR test 72 hours before their flight. The government said it did not
have the facilities for the antigen test demanded by Emirates. Following
Nigeria's insistence, Emirates banned its outbound flights from Nigeria and
later its in-bound flights, which it had operated for several weeks after
the ban on outbound flights.

 

Meanwhile, for over one week the centre lights at the MMIA runway were
unserviceable, prompting the agency to issue Notice to Airmen (NOTAM) and
provide bar stopper light at each end of the runways to guide pilots to land
after dusk.

 

Shin-Aba told THISDAY that the airfield lighting on the runway had been
fixed and all airlines could now land their planes at the airport.

 

However, insider sources at FAAN told THISDAY that a temporary measure was
put in place to enable flights land, as the second runway, known as Runway
18L (domestic runway), had no airfield lighting for years since its
rehabilitation in 2008.

 

The status of the runway lighting before it was fixed on Saturday might have
prompted British Airways to divert its Lagos flight to Abuja on Friday, but
other airlines landed their flights at the airport in Lagos.

 

The FAAN regional manager stated, "The runway lights had been bad since over
a week, but FAAN issued NOTAM to notify airlines and pilots globally, so any
airline coming to Nigeria knew the problem with the runway.

 

"But FAAN installed bar stopper light at the two ends of the runway to guide
pilots that wish to land at the runway in the night. This is a big challenge
for us because it is not about getting the airport certified; it is about
sustaining the standard achieved to earn the certification.

 

"I don't know why BA diverted its flight to Abuja, but the airline was aware
of the status of the airport even before it left London to Lagos."-This Day.

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


Edgars

AGM

virtual

June 30, 8:45am

 


GetBucks

2019  AGM

Conference Room 1, Monomotapa Hotel, 54 Parklane

July 1, 8:30am

 


GetBucks

2020 AGM

Conference Room 1, Monomotapa Hotel, 54 Parklane

July 1, 10:30am

 


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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