Major International Business Headlines Brief::: 25 June 2021

Fri Jun 25 08:30:43 CAT 2021

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Major International Business Headlines Brief::: 25 June 2021

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

ü  Nike chief executive says firm is 'of China and for China'

ü  Covid: Balearics and Malta added to UK's green travel list

ü  Biden backs bumper economic stimulus bill - with big caveat

ü  Cathay Pacific crew told to get vaccine or risk losing job

ü  EE to reintroduce Europe roaming charges in January

ü  Canada Goose to end the use of all fur on coats

ü  Citi bank boss says staff work better in the office

ü  Poundland says tenth of products are not a pound

ü  Shareholders oust Toshiba board chairman in big win for Japan governance

ü  China listing frenzy in U.S. set to be boosted by Didi IPO

ü  Bitcoin to become legal tender in El Salvador on Sept 7

ü  China's ban forces some bitcoin miners to flee overseas, others sell out

ü  FedEx shares fall as labor woes weigh on 2022 outlook

ü  China's Bitmain suspends sales of cryptomining machines after Beijing's mining ban

ü  BlackBerry first-quarter revenue beats expectations, shares rise

 <mailto:info at bulls.co.zw> 

Nike chief executive says firm is 'of China and for China'

The boss of Nike has made a robust defence of the firm's business in China after facing a consumer boycott there.

Chief executive John Donahoe said "Nike is a brand that is of China and for China" in response to a question about competition from Chinese brands.

Mr Donahoe was speaking during a call with Wall Street analysts about Nike's latest earnings report.

The comments come after the sportswear giant was recently hit by a backlash over statements about Xinjiang.

Mr Donahoe made the comments during a discussion on Nike's fourth quarter earnings, which showed revenues had doubled to a better-than-expected $12.3bn (£8.8bn) for the three months to the end of March.

That helped it bounce back to a $1.5bn profit, from a $790m loss during the depths of the pandemic a year earlier.

The figures also showed that revenue in China rose to more than $1.9bn, but missed Wall Street expectations of $2.2bn.

Mr Donahoe said he remained confident that China would continue to be a fast-growing market for the company due to its many years of investment there.

"We've always taken a long term view. We've been in China for over 40 years," he said.

"Phil [Knight] invested significant time and energy in China in the early days and today we're the largest sport brand there," he said in reference to Nike's co-founder and former chief executive who first saw the potential for growth in the country.

Nike did not immediately respond to a BBC request for further comment.

The company's shares rose by more than 14% during after-hours trade in New York.

Why was Nike boycotted in China?

Several Western brands, including Nike and Swedish fashion retailer H&M, recently faced a backlash from Chinese shoppers after the firms expressed concerns about the alleged use of Uyghur forced labour in cotton production.

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

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

In December, the BBC published an investigation based on new research showing China was forcing hundreds of thousands of minorities including Uyghurs into manual labour in Xinjiang's cotton fields.

What is Xinjiang and who are the Uyghurs?

·         Xinjiang, China's biggest region, produces about a fifth of the world's cotton. An autonomous region in theory, in reality it faces restrictions which have only increased in recent years

·         Millions of China's Uyghurs, a Muslim minority that sees itself as culturally and ethnically close to Central Asian nations, live in Xinjiang

·         In recent decades, mass migration of Han Chinese (China's ethnic majority) to Xinjiang has fuelled tensions with Uyghurs which has at points flared into deadly violence

·         This has resulted in a massive security crackdown and an extensive state surveillance programme, which critics say violate Uyghur human rights. China says such measures are necessary to combat separatism and terrorism

·         Uyghurs have been detained at camps where allegations of torture, forced labour and sexual abuse have emerged. China has denied these claims saying the camps are "re-education" facilities aimed at lifting Uyghurs out of poverty-BBC

Covid: Balearics and Malta added to UK's green travel list

Spain's Balearic Islands, Madeira, Malta and Barbados are among the places being added to the UK's green travel list, the transport secretary has said.

People entering the UK from 16 places will not have to quarantine from 04:00 on 30 June, Grant Shapps confirmed.

He also said the government intended to drop quarantine for fully vaccinated people returning from amber list countries "later in the summer".

Six destinations have also been added to the government's red list.

The travel industry welcomed the additions to the green list, but urged the government to go further.

The destinations added to the green list from 04:00 BST on 30 June are:

·         Europe: The Balearic Islands (which include Ibiza, Menorca, Majorca and Formentera), Malta and Madeira

·         Caribbean: Antigua, Barbados, Barbuda, Dominica and Grenada

·         UK overseas territories: Anguilla and Montserrat, Bermuda, British Antarctic Territory, British Indian Ocean Territory, British Virgin Islands, Cayman Islands, Pitcairn, and Turks and Caicos Islands.

The places added to the red lists for the same time are:

Dominican Republic, Eritrea, Haiti, Mongolia, Tunisia and Uganda.

What are the rules for green, amber and red list countries?

Mr Shapps cautioned that all the additions to the green list, with the exception of Malta, had also been added to the green watch list, signalling that they are at risk of moving back to amber. Israel and Jerusalem have also been put on the watch list.

The Department for Transport said the plan to allow fully-vaccinated people to arrive from amber list countries without having to quarantine was expected to take place in phases, starting with UK residents.

The department also said it intended to remove the guidance that people should not travel to amber countries, and it would take clinical advice on whether regular testing could provide a safe alternative to quarantine for children accompanied by vaccinated adults.

A spokesman said further detail will be set out next month, including the rules for children and those unable to be vaccinated and the dates the changes will come into effect.

Mr Shapps added: "We're moving forward with efforts to safely reopen international travel this summer, and thanks to the success of our vaccination programme, we're now able to consider removing the quarantine period for fully-vaccinated UK arrivals from amber countries - showing a real sign of progress.

"It's right that we continue with this cautious approach, to protect public health and the vaccine rollout as our top priority, while ensuring that our route out of the international travel restrictions is sustainable."

But Eluned Morgan, Wales' minister for health and social services, said: "Our message is clear - this is the year to holiday at home. We're calling on people to only travel overseas for essential reasons."

On Thursday, the UK reported 16,703 cases and 21 deaths within 28 days of a positive coronavirus test.

People enjoy warm weather at a beach in Menorca

The prospect of European holidays also faces another hurdle after German Chancellor Angela Merkel suggested all EU countries should make British travellers quarantine on arrival to slow the spread of the Delta variant.

Mrs Merkel told Germany's parliament: "In our country, if you come from Great Britain, you have to go into quarantine - and that's not the case in every European country, and that's what I would like to see."

French President Emmanuel Macron also spoke of his concern at the spread of the variant.

"We should all be vigilant because the Delta variant is coming," he said on Thursday.

"We see that it affects people who have not yet been vaccinated or who have only had one dose, which means we have to be even faster in this vaccination campaign."

Currently, people travelling from the UK to Greece, Spain and Portugal are not required to quarantine.

Those going to Italy have to self-isolate for five days then take a test, while fully-vaccinated UK visitors to France can enter without quarantining.

Most holiday hotspots are currently on the amber list, including France, Italy and mainland Spain, meaning travellers returning to the UK have to self-isolate for 10 days, as well as pay for tests.

The expanded green list is the longest it has been since the government set up the traffic light system for travel.

But BBC transport correspondent Caroline Davies pointed out that most of Europe and other key transport destinations are still not on the green list.

There is also no set date for when fully vaccinated travellers will no longer have to quarantine, with the government still having to resolve questions about how the policy will work.

Our correspondent added that it was potentially a small step in the right direction for the industry, "but maybe a bit of a shaky one".

'Cannot afford another missed summer'

The travel industry welcomed the expansion of the green list but warned it was not enough to help the sector recover from the pandemic.

Sean Doyle, chief executive officer of British Airways said: "We cannot afford another missed summer. There are jobs at stake, Britons separated from family members and we cannot afford to allow the success of our vaccine programme to be wasted."

He added that plans to allow vaccinated people to travel more freely this summer were "critical" and urged the government to work with the aviation industry to set this up.

Matthew Fell, the Confederation of British Industry's chief UK policy director, said the additions to the green list "won't be enough to salvage the summer season for the international travel sector".

He said: "The UK's successful vaccine rollout means we should be in the vanguard of safely restarting international travel. Other countries are already pressing ahead with enabling travel for the fully vaccinated."

Shai Weiss, chief executive of Virgin Atlantic, said the expanded travel green list "fails to go far enough", adding that the US should have been added to it.

He said quarantine should be removed for fully vaccinated passengers arriving from amber and green countries "no later" than 19 July.

But Rory Boland, travel editor of consumer magazine Which?, said travellers still needed to be "extremely cautious" about booking trips abroad with the rules on international travel changing regularly.

"Most providers will not pay refunds if a country is moved from green to amber, and 'free' amendments are often anything but, with many companies requiring significant notice of any changes and bookings for new dates usually costing hundreds of pounds," he said.

Table showing how the UK Covid case numbers compare

What are the rules for visiting green and amber countries?

How can I prove I've had both my Covid jabs?

What's happening with foreign travel?

Earlier, Prime Minister Boris Johnson said there was a "real opportunity" to open travel this summer for those who have had two jabs.

Asked about the prospect of a change to travel rules, Mr Johnson said: "The most important thing is that we think double jabs do offer a good way forward, we think they offer the hope of travel this summer.

"More than 60% of our population have now had two jabs, I think 83% have had one jab, we're really getting through it now. The crucial thing is, come forward and get your second jab," he said.

The UK government reviews which countries are on which list every three weeks.

There will also be a "checkpoint" review of the rules for each category on Monday 28 June.

Graphic showing how the traffic light system for arrivals will work

On Wednesday, workers in the industry, including cabin crew, pilots, travel agents and airport staff, held a series of protests against the rules.

Industry body Abta, representing travel agents and tour operators, estimated 195,000 travel jobs have been lost during the pandemic or are at risk.-BBC

Biden backs bumper economic stimulus bill - with big caveat

The US Senate has struck an agreement for a $1.2tn (£860bn) infrastructure bill in what could herald a legislative victory for President Joe Biden.

"We have a deal," said the president after meeting the cross-party group of senators at the White House.

The eight-year plan includes funding for roads, bridges, the power grid, public transport and internet.

But the deal is far from done as Mr Biden said it depends on if Democrats can pass another, bigger spending bill.

At the White House on Thursday, Mr Biden praised the group of five Republican and five Democratic senators whom he met earlier, and promised the package would generate "millions" of jobs.

The investments are long overdue, said Mr Biden, who has persisted with the cross-party negotiations despite the impatience and scepticism of some in his Democratic party.

"We're in a race with China and the rest of the world for the 21st Century," he continued, adding: "This agreement signals to the world that we can function, deliver and do significant things."

What's in the bill?

Less than half the money in the eight-year proposal is new spending. It includes $109bn for roads and bridges, $66bn for railways, $49bn for public transport and $25bn for airports, according to a White House statement.

A further $73bn would be pumped into power grid and $65bn for expanding Americans' access to broadband internet.

The package is meant to be paid for with unused coronavirus aid money and returned state jobless benefits.

Democrats also argue the bill's proposed $40bn investment in the Internal Revenue Service for beefed-up enforcement would generate a net gain of $100bn in extra tax revenue.

The plan will reportedly neither raise taxes on middle-income Americans, nor reverse the cuts to business taxes that were passed during the Trump presidency.

Republicans had strongly opposed Mr Biden's calls to increase the corporate tax rate from 21% to 28%, while the president had rejected a plan to hike taxes on petrol.

What would be in the separate bill?

The president wants to enact another, roughly $6tn spending package that would roll in his party's priorities on climate change, education, paid leave and childcare benefits. It is being drafted by Senator Bernie Sanders, a self-described democratic socialist.

That measure is expected to include tax increases on the wealthy and corporations. It would be passed by a budget reconciliation process that would not require any Republican votes in the Senate.

The most powerful Democrat in the US House of Representatives, Speaker Nancy Pelosi, made clear they would not pass one bill without the other.

"There ain't going to be a bipartisan bill without a reconciliation bill," Mrs Pelosi said.

Mr Biden echoed that sentiment in later remarks from the East Room of the White House: "If this is the only thing that comes to me, I'm not signing it. It's in tandem."

What's the reaction?

Senate Republican leader Mitch McConnell, whose support will be crucial to passage of the infrastructure bill, told Fox News: "I think we have gone from optimism to pessimism as a result of the president's second press conference."

There was also scepticism from Democratic Senator Joe Manchin, a moderate who could effectively doom the larger bill because the upper chamber is evenly split between the two parties.

He told reporters on Thursday: "That sounds extremely, extremely high for us to take on that much debt."

Mr Biden already signed a $1.9tn coronavirus stimulus back in March. By the end of July, Congress also faces a deadline to again raise the nation's borrowing limit, which is already at $28tn in debt.

A bridge collapsed on to a highway in Washington DC one day before the deal was struck

In his inaugural address, Joe Biden pledged to work with Republicans to reach bipartisan consensus.

For the first five months of his presidency, however, Mr Biden and the Democrats have mostly had to go it alone - on an expansive Covid relief package and on confirming nominees to the administration and the judiciary.

Now, after extended negotiations, it appears that the White House has found a way to work with a handful of Senate Republicans to pass an infrastructure spending package.

It's not the "epiphany" candidate Biden promised would occur among conservatives during his presidency, but for a White House that has laboured for a deal, it's a start.

There are still many ways this agreement could go sideways, however. Mr Biden's strategy of passing this bipartisan legislation alongside a more ambitious Democrat-only package of spending on social programmes will be a tricky dance.

If the former fails, centrist Democrats may vote against the liberal agenda. If Democrats can't stick together on the latter, then progressive senators - growing wary of this administration - could scuttle the former.

Mr Biden, a veteran of the US Senate, likes to boast that he knows how the chamber operates. The next few months will more than test his skills.-BBC

Cathay Pacific crew told to get vaccine or risk losing job

Cathay Pacific has told its aircrew that they must get a Covid vaccination by 31 August or risk losing their jobs.

The airline said staff rostering has become "difficult and complicated" because of a need to segregate vaccinated and non-vaccinated crew.

Cathay Pacific said it could, in the "short-term", accommodate those employees not able to take the vaccine.

But it said: "We will review the future employment of those who are unable to become vaccinated."

The carrier added that it would "assess whether they can continue to be employed as aircrew".

The Hong Kong-based airline said that 90% of its pilots and 65% of its cabin crew have been vaccinated or have appointments to receive the injection.

But it said it was "becoming clear that only fully vaccinated aircrew will be able to return without quarantine from most places".

It said that in order for Cathay Pacific and the global airline industry to recover, "vaccination is a critical component".

"After very careful consideration, we have now made the decision that all Hong Kong-based crewmembers must be vaccinated against Covid-19 by 31 August 2021," it said.

It comes as Hong Kong prepares to relax some Covid travel restrictions as early as the end of this month.

Hong Kong residents will have to quarantine for seven days, instead of the current two-week period, if they are fully vaccinated and take a test at the airport to show they are negative for Covid and positive for antibodies.

According to the South China Morning Post, it is hoped the arrangement could then be extended to Hong Kong residents currently overseas as well as other travellers.

Vaccination rates in Hong Kong are relatively low, with 27% of the population receiving the first jab and 17.6% of the population fully vaccinated. That compares with 65% of people in the UK who have had the first dose and 47% who have had both.

Airlines have taken differing approaches to cabin crew vaccinations. Earlier this week, US carrier United Airlines said that from August only fully vaccinated pilots and cabin crew would be allowed to work on flights to high risk destinations.

It would apply to flights operating in countries such as India, Brazil and Chile.

United Airlines, as well as US rival Delta, are requiring that all new recruits joining from 15 June are fully vaccinated against Covid.BBC

EE to reintroduce Europe roaming charges in January

Mobile operator EE will charge new UK customers extra to use their mobile phones in Europe from January.

Those joining or upgrading from 7 July 2021 will be charged £2 a day to use their allowances in 47 European destinations from January 2022.

EE, which is part of BT Group, previously said it had no plans to reintroduce roaming charges in Europe.

It is the first UK operator to reintroduce the charges since the EU trade deal was signed in December.

Since 2017, mobile networks in EU countries have not been allowed to charge customers extra to use their phones in other EU countries.

There are some "fair use" limits, for example, you cannot get a mobile phone contract from Romania and then use it all year round in Italy.

In January 2021, EE, O2, Three and Vodafone all stated they had no plans to reintroduce roaming charges, despite Brexit giving them the option to do so.

EE said on Thursday that introducing the charges would "support investment into our UK based customer service and leading UK network".

However, it will not charge UK customers extra to use their phones in the Republic of Ireland.

Customers travelling to the 47 affected European destinations will also be able to buy 30-day passes for £10 to use their home tariff abroad.

'Fair use'

On Wednesday, it was reported that O2 was going to reintroduce roaming charges.

However, it is merely adding a "fair use" data cap of 25GB a month and will not charge customers more to use their phones in the EU.

Fair use limits are normal and were allowed when the UK was still part of the EU. From next month, Three will be reducing its fair use limit from 20GB a month to 12GB.

The UK's trade deal with the EU says that both sides will encourage operators to have "transparent and reasonable rates" for roaming, but it did not ban charges.

The government's guidelines encouraged people traveling in Europe to check with their mobile operators to find out about any roaming charges.-BBC

Canada Goose to end the use of all fur on coats

Canada Goose, the maker of luxury-priced winter coats, has announced it will no longer use animal fur on its clothing.

The firm said it will cease buying fur by the end of this year and stop using it on its products by the end of 2022.

Humane Society International said the decision was a "momentous step in the demise of cruel fur fashion".

Canada Goose has long been criticised by campaigners for using coyote fur on its parkas.

Claire Bass, executive director of the Humane Society, said: "For years, Canada Goose's trademark parka jackets with coyote fur trim have been synonymous with fur cruelty but their announcement today is another major blow to the global fur trade."

The move is part of Canada Goose's strategy to become more environmentally conscious and extend the use of sustainable materials as well as low carbon methods of making its coats.

A number of luxury fashion brands have stopped using fur in their clothing in recent years. Nordstrom, the upmarket US department store, said it would stop selling products made with fur or exotic animal skin by the end of this year.

Under its then new chief creative officer, Riccardo Tisci, Burberry announced back in 2018 it would stop using rabbit, fox, mink and raccoon fur in its collections. Italy's Prada also committed to end the use of fur.

Ms Bass said fur was a "dying industry on its knees from the punches of so many top designers and retailers walking away from the PR-nightmare of fur".

"Canada Goose's fur-free policy will spare untold thousands of coyotes from being maimed and killed in cruel metal leg-hold traps," she said.-BBC

Citi bank boss says staff work better in the office

The UK boss of banking giant Citigroup has said its "business works best from being together" as the firm plans for staff to work from the office for three days a week.

James Bardrick said workers needed to be together "to get the best out of yourself and for the team".

His comments come as other firms such as Goldman Sachs plan to get all staff back in the office after 19 July.

Some firms are also instructing staff to register their vaccine status.

Mr Bardrick, Citi's country officer for the UK, said after restrictions were eased, the "vast majority" of staff would work from the office three days a week and have two days a week elsewhere.

However, Mr Bardrick told BBC Radio 4's Today programme: "We strongly believe that our business works best from being together.

"We think that we are better together. We think we succeed for our clients and for our organisation together.

"So what we are saying is that, yes, use greater flexibility, but to do your job well, to develop as an employee, to get the best out of yourself and for the team, we need to be together."

Mr Bardrick said the bank was not copying JP Morgan's policy on vaccination status, but added anyone entering a company building had to "demonstrate that they have got a negative test result".

JP Morgan, the biggest bank in the US, has instructed its US staff to register their vaccine status on an internal web portal, with its boss Jamie Dimon previously saying he wanted staff back in the office from July.

Meanwhile, Goldman Sachs told the BBC it was mandatory for US staff to share their vaccine status but voluntary for UK workers.

NatWest has said just over a third of its 59,300 full-time employees in the UK would continue to work remotely. Some 55% of its staff would adopt a hybrid model of working, splitting their time between the office and home.

Morgan Stanley has barred staff and clients from entering its New York offices if they are not fully vaccinated.

An internal memo, first reported by the Financial Times, said: "Starting July 12 all employees, contingent workforce, clients and visitors will be required to attest to being fully vaccinated to access Morgan Stanley buildings in New York City and Westchester."

A person familiar with the policy told the BBC: "Operating within a fully vaccinated environment allows us to lift restrictions like the use of face coverings and the need to maintain physical distancing, returning to more normal office conditions."

Mark Dixon, chief executive of global workspace provider IWG, said his company was working with firms to "provide hybrid working solutions".

He said having all staff working from one office building made "no sense" in a digital world.

"Everyone has worked out they can do their job from anywhere," he added. "They want to go into the office some of the time, not all the time.

"The geography of work is going to change," he added. "It's simply technology allowing people to work from anywhere they want.

"It saves the company money and reduces their carbon footprint."

"Ultimately, the answer is yes," according to Shah Qureshi, partner and head of employment at law firm Irwin Mitchell.

"There is an obligation to return to the office where an employer requires you to do so, and your normal workplace is the office, but there is a duty of care that the employer has to ensure that everything is safe as far as possible."

Mr Qureshi said that when a person is under a contract of employment, they are required to attend the workplace in order to undertake their duties.

However, he added that under the Health and Safety at Work Act, "employers have an obligation to ensure that there is a safe working environment, a safe workplace, to which an employee returns", which is irrespective of whether restrictions are abolished on 19 July.

"The duty of care (from employers) still remains and has always been there," he said.

Measures put in place by companies would include spacing desks out, enforcing one-way walking systems and ensuring adequate sanitary facilities.

"Some employers are bringing in separate bubbles and they're planning on having different bubbles in at different times."

Mr Qureshi said that as the law currently stands, there is no legal right for employees to work from home.

Despite debates around such a right being made into law, it was "very difficult to predict" what would happen, he added.

"I think it depends on whether there is a groundswell of public opinion in favour of that."-BBC

Poundland says tenth of products are not a pound

About 10% of Poundland products are no longer priced at £1, the discount retailer has said.

Poundland moved away from pricing everything at £1 in 2017 and now sells some items between 50p and £10 to take on rivals such as B&M and Wilko.

Its owner Pepco said sales continued to grow in the past six months despite the Covid pandemic.

Poundland and European sister firm Dealz saw like-for-like sales rise 1.4% in the six months to the end of March.

This was despite many of its stores being hit by pandemic restrictions.

Some shoppers were wary of going to shopping centres and High Streets where they thought the risk of infection was higher, the company said.

But Pepco's chief executive Andy Bond said that the pandemic had given the group more confidence in the future.

"[After] a flurry of certain elements of society spending their savings that they've accumulated, post-pandemic almost certainly there will be some form of belt tightening from most people and therefore discounting will have another surge," he said.

He said the last 30 years had shown discounting thrived following any economic crisis.

But he added: "We anticipate that the environment in which we operate will remain changeable and challenging in the short term."

Poundland has 917 UK and Ireland stores.

Pepco, which recently listed on the Warsaw stock exchange, said total revenue across the business was up 4.4% to €2bn (£1.7bn), with pre-tax profits in the period up from €64m (£55m) to €96m.

However, group like-for-like revenue declined 2.1% after weeks lost to Covid-related store closures.

The group's shares were priced at 40 zlotys (£7.5) when it floated, and were trading at more than 47 zlotys on Thursday.--BBC

Shareholders oust Toshiba board chairman in big win for Japan governance

(Reuters) - Shareholders at crisis-ridden Toshiba Corp (6502.T) voted out its board chairman and one other director on Friday, a forceful rebuke of the company after it was found to have colluded with the government in suppressing foreign investor interests.

For many, the result at the annual general meeting marks a new watershed moment for corporate governance in Japan after activist Toshiba shareholders prevailed earlier this year in securing a probe into the allegations of pressure on overseas investors.

"This result is a sign of a paradigm shift in Japan and will only embolden activist investors whether foreign or domestic," said Justin Tang, head of Asian research at United First Partners in Singapore.

But supporters of now former board chairman Osamu Nagayama say his failure to win re-election will only set Toshiba further back, depriving the industrial conglomerate, which has lurched from crisis to crisis since 2015, of experienced leadership.

A breakdown of the vote was not immediately disclosed. The newly elected board will meet later on Friday to discuss who will head the new board.

According to one Toshiba source, foreign investors had voted in greater numbers than in the company's previous shareholder meetings as they saw it as an important test case of corporate governance in Japan. The source was not authorised to speak to media and declined to be identified.

Just how the government will respond to the results of the AGM remains to be seen.

Toshiba, makes defence equipment and nuclear reactors, is strategically important to the government and Trade Minister Hiroshi Kajiyama has been unapologetic about his ministry's dealings with the company, saying the policies it implemented were natural ones for the ministry to take.

"In general the hope is that corporate governance can be improved through discussions with shareholders and at the same time we work to secure the stable development of businesses and technology that are important from a national security standpoint," he told a regular news conference ahead of the AGM.

On Thursday, Akira Amari, a former economy minister and an influential lawmaker in the ruling Liberal Democratic Party, accused activist investors of focusing only on short-term profits and called for better monitoring of such investors to protect economic security. read more

SHAREHOLDER REVOLT

Shares in Toshiba recouped earlier losses to be be flat after the result. The stock has increased more than two-thirds in value this year, bolstered by a $20 billion bid for the company by private equity company CVC Capital. Although Toshiba has dimissed that bid, it has promised a strategic review.

Nagayama only joined Toshiba's board in mid-2020 after the alleged pressuring of foreign shareholders to vote in line with management's board nominees took place.

A former Chugai Pharmaceutical (4519.T) CEO and Sony Group Corp (6758.T) board director, he is well respected and both the electronics giant and former U.S. ambassador to Japan John Roos had expressed their support for him.

But his critics argued he should step down to take responsibility for the board's resistance to address the allegations.

Shareholder advisory firms Institutional Shareholder Services Inc and Glass Lewis had recommended shareholders not reappoint him, while 3D Investment Partners, Toshiba's Singapore-based No. 2 shareholder with a 7.2% stake, had called for his resignation.

3D Investment said in a statement after the result that it hoped the AGM marked the beginning of a new era at Toshiba and it looked forward to constructive, ongoing dialogue with Toshiba's board and management team.

Toshiba nominated 11 directors at the AGM, including Nagayama. Nobuyuki Kobayashi, a member of the audit committee, was also voted out.

The Thomson Reuters Trust Principles.

China listing frenzy in U.S. set to be boosted by Didi IPO

(Reuters) - Ride-hailing giant Didi Chuxing's planned $4 billion New York debut will supercharge Chinese listings in the United States on the back of an all-time high in the first half the year, despite political sparring between the two countries.

A total of 29 initial public offerings (IPOs) by Chinese companies in the United States in the first six months of the year raised $7.6 billion, the highest amount ever for that time period, according to Refinitiv data.

That was significantly higher than the $1.9 billion worth of listings in the same time period last year when Chinese firms were more cautious about uncertainties over the economic fallout from the coronavirus pandemic.

The rush of listings happened despite continued political tension between the two countries under President Joe Biden, and the looming threat of U.S. kicking out Chinese companies if they fail to meet auditing standards. read more

"The Chinese equity story is still appealing to international investors, whereas the U.S. valuation and international fund raising opportunities are just as appealing to the Chinese issuers," said Ivy Wong, chair of law firm Baker McKenzie's capital markets practice.

"Having contemplated the audit requirements coming into play for quite some time, it doesn't seem that the investors' appetite has changed nor the issuers' appetite to list and raise funds from US listings has changed."

The Biden administration has pressed on with the Holding Foreign Companies Accountable Act, signed into law by then-President Donald Trump in December, which is aimed at removing Chinese companies from U.S. exchanges if they fail to comply with American auditing standards for three years in a row.

The biggest Chinese listing in the United States so far this year was Full Truck Alliance (YMM.N), sometimes referred to as "Uber for trucks", which raised $1.6 billion earlier this week. E-cigarette company RLX Technology (RLX.N) followed closely behind, raising $1.4 billion in January.

Didi, China's largest ride-hailing company, is aiming for a valuation of more than $60 billion in its New York debut, setting it up for what is likely to be the biggest U.S. IPO this year.

The share sale, which will price on Tuesday, will also be one of the biggest by any Chinese company in the United States since Alibaba raised $25 billion in 2014. read more

ASIA-PACIFIC ECM

The level of equity capital markets (ECM) activity across Asia so far this year, following a record 2020, has surprised dealmakers.

There has been $250.6 billion worth of equity capital market deals in Asia Pacific, including Japan, in the first half of 2021, up 70.7% compared to the same time last year, Refinitiv data showed.

"On the back of a global recovery, we expected to see a sustained level of activity, but we didn't foresee activity up 90% year-on-year," said Alex Abagian, Co-Head of Asia Pacific ECM at Morgan Stanley, using a figure that excludes Japan and China A-shares.

"That is extraordinary on the back of a very strong 2020."

Technology deals accounted for 24% of Asia IPOs in the first half and prospect of more emerging in the second half remains strong, according to Refinitiv data.

"There are still tech companies looking to come to list in Hong Kong in the second half of this year, or the early part of next year, so tech is still a big theme," said Peter Cheng, partner at law firm Deacons.

The Thomson Reuters Trust Principles.

Bitcoin to become legal tender in El Salvador on Sept 7

(Reuters) - El Salvador's President Nayib Bukele said in a national address on Thursday that a recently passed law making bitcoin legal tender will take effect on Sept. 7, noting that its use will be optional.

El Salvador's Congress already approved Bukele's proposal to embrace the cryptocurrency, making El Salvador the first country in the world to adopt bitcoin as legal tender. read more

"The use of bitcoin will be optional, nobody will receive bitcoin if they don't want it... If someone receives a payment in bitcoin they can choose to automatically receive it in dollars," said Bukele.

Salaries and pensions will continue to be paid in U.S. dollars, said Bukele, without specifying if that included salaries paid to state workers and private sector employees.

Earlier in the day Athena Bitcoin said it plans to invest over $1 million to install some 1,500 cryptocurrency ATMs in El Salvador, especially where residents receive remittances from abroad. read more

According to Athena Bitcoin's website, the ATMs can be used to buy bitcoins or sell them for cash.

"One of the reasons we passed the bitcoin law is precisely to help people who send remittances," said Bukele, adding the high costs of commissions traditionally associated with sending money home would be eliminated by using the cryptocurrency.

El Salvador relies heavily on money sent back from workers abroad. World Bank data showed remittances to the country made up nearly $6 billion or around a fifth of gross domestic product (GDP) in 2019, one of the highest ratios in the world.

Less than 1% of the volume of global cross-border remittances are currently in cryptocurrency, according to Kenneth Suchoski, U.S payments and fintech analyst at Autonomous Research. But in the future crypto is expected to account for a larger slice of the more than $500 billion in global annual remittances. read more

The Thomson Reuters Trust Principles.

Panasonic sells Tesla stake for $3.6 bln, may use cash for strategic investments

(Reuters) - Panasonic Corp (6752.T) sold its stake in electric car maker Tesla Inc (TSLA.O) for about 400 billion yen ($3.61 billion) in the year ended March, a spokesperson for the Japanese company said on Friday.

The sale comes as the bicycles-to-hair dryers conglomerate is seeking to reduce its dependence on Tesla and raise cash for investing in growth.

Panasonic's battery business is dominated by Elon Musk's Tesla, but the two firms have had a tense relationship at times with executives trading barbs publicly.

Panasonic bought 1.4 million Tesla shares at $21.15 each in 2010 for about $30 million. That stake was worth $730 million at the end of March 2020. The shares have gained almost seven fold since then and closed up 3.5% at $679.82 apiece on Thursday.

"The impact of crypto assets may have pushed Tesla's share price above its intrinsic value, making it a good time to sell," said Hideki Yasuda, an analyst at Ace Research Institute.

Musk said in February his firm bought bitcoin and would take payment in the cryptocurrency, a decision he later reversed, and his comments on Twitter drive swings in the price of such assets.

While Panasonic gave financial backing to Tesla when it was smaller, the automaker's expansion means there's no need for capital ties, Yasuda added. Panasonic's shares were up 4.2% on Friday.

The stake sale will not affect the partnership with Tesla, the Panasonic spokesperson said, but comes as the automaker is diversifying its own battery supply chain.

Tesla has struck deals with South Korea's LG Energy Solution, a unit of LG Chem (051910.KS), and China's CATL (300750.SZ), with Reuters reporting the latter is planning a plant in Shanghai near the automaker's production base.

Panasonic said earlier this year it would buy the sharesof U.S. supply-chain software company Blue Yonder(NWMUTJ.UL) that it does not already own, in a $7.1 billion deal. Its biggest such deal in a decade, the price raised the eyebrows of analysts who pointed to the firm's spotty M&A track record.

($1 = 110.8700 yen)

The Thomson Reuters Trust Principles.

China's ban forces some bitcoin miners to flee overseas, others sell out

(Reuters) - China's sweeping ban on cryptocurrency mining has paralysed an industry that accounts for over half of global bitcoin production, as miners dump machines in despair or seek refuge in places such as Texas or Kazakhstan.

"Many miners are exiting the business to comply with government policies," said Mike Huang, operator of a cryptomining farm in the southwest province of Sichuan.

"Mining machines are selling like scrap metal."

The local government of Sichuan, China's No.2 bitcoin mining centre after Xinjiang, issued a ban on cryptomining a week ago. read more

China's State Council, or cabinet, vowed to crack down on bitcoin trading and mining in late May, seeking to fend off financial risks after the global bitcoin mania revived Chinese speculative trading in cryptocurrencies. The clampdown comes as China's central bank is testing its own digital currency.

Chinese authorities say cryptocurrencies disrupt economic order, and facilitate illegal asset transfers and money laundering. Analysts say Beijing is also worried about potential competition for the digital yuan and that the power-hungry business of bitcoin mining could damage the environment.

Following Beijing's call, China's main cryptocurrency mining hubs, including Inner Mongolia, Xinjiang, Yunnan and Sichuan, have unveiled detailed measures to root out the business. read more

Bitcoin prices plunged below $30,000 this week, less than half their peak levels hit in April, as global investors worried about disruptions in a hitherto large market.

"If the government doesn't allow it (cryptomining), I just have to quit," said Liu Hongfei, a mining project operator in China's southwestern Yunnan province.

"You don't fight the Communist Party in China, do you?"

China's ban on bitcoin mining may see up to 90% of all mining in the country go offline, according to an estimate by Adam James, a senior editor at OKEx Insights.

Bitcoin and other cryptocurrencies are created or "mined" by high-powered computers, or rigs, competing to solve complex mathematical puzzles in a process that makes intensive use of electricity.

Most miners in China are "shutting down their machines, and selling them," said Nishant Sharma, founder of BlocksBridge Consulting, a consultancy focused on the cryptomining industry.

As a result of China's shutdown, "every mining operation outside China benefits straight away," because their mining reward, which is proportional to their share of the global hash rate of the bitcoin network - a measure of miners' processing power - automatically goes up, Sharma said.

"This is the end of an era for cryptomining in China," said Winston Ma, NYU Law School adjunct professor.

RELOCATING

Prices of mining rigs have slumped on the mainland after the ban.

One machine which sold around 4,000 yuan ($620) in April and May, could now be bought for as low as 700-800 yuan, said a miner in Sichuan.

Bitmain, China's biggest maker of cryptocurrency mining machines, said on Friday it had suspended sales of its products and was looking for "quality" power supplies overseas alongside its clients, in places including the United States, Canada, Australia, Russia, Kazakhstan and Indonesia. read more

Some big Chinese miners are already venturing overseas.

BIT Mining said on Monday that it had successfully delivered its first batch of 320 mining machines to Kazakhstan. A second and third batch, totalling 2,600 machines, will be delivered to the central Asian country by July 1.

"We are accelerating our overseas development for alternative high-quality mining resources," CEO Xianfeng Yang said in a statement. BIT Mining has also invested in cryptomining data centres in Texas.

Huang Dezhi, who operates a mining farm in Sichuan, said his team is also exploring possible overseas destinations such as Kazakhstan.

"If the government doesn't reverse the policy, we will have no other choice. You cannot defy central government decisions," Huang said.

A project manager who identified himself only as Mr. Sun said he has been offering to help local miners move to Russia, but demand for his services had been lukewarm so far.

"Big risks if you move machines offshore, because you're in effect giving up control over your assets," said Sun, who is also securing fresh electricity supplies in China's southern Guangdong province, where restrictions are less tough.

Some miners meanwhile hope the ban will be eventually relaxed.

"Power supply has been cut, but we were not ordered to demolish the project," said Wang Weifeng, a miner in Sichuan.

"So we're taking a wait-and-see attitude. There remains a sliver of hope."

($1 = 6.4663 Chinese yuan)

The Thomson Reuters Trust Principles.

FedEx shares fall as labor woes weigh on 2022 outlook

(Reuters) - Shares in U.S. delivery firm FedEx Corp (FDX.N) shed more than 4% on Thursday after hiring difficulties tempered its 2022 earnings forecast that missed Wall Street expectations.

FedEx founder and CEO Fred Smith told analysts that operations at the Memphis-based company are being crimped by an inability to find enough workers.

Widespread labor shortages are hitting FedEx in the form of "higher wage rates and lower productivity, particularly in the (current fiscal) first quarter, and this is reflected in our overall outlook for the year," Chief Financial Officer Mike Lenz said.

FedEx expects 2022 earnings, excluding some items, of $18.90 to $19.90 per share - less than analysts' average estimate of $20.37, according to Refinitiv data. That sent its shares down $13.31 to $290.38 in extended trading.

Data from Convey Inc shows FedEx lags both UPS and the U.S. Postal Service when it comes to on-time deliveries.

Staffing challenges "contributed to recent service levels that do not meet our own high expectations," Chief Operating Officer Raj Subramaniam said.

For example, failure to recruit package handlers sends overtime costs up and requires parcels to be routed away from regions with inadequate labor, Subramaniam said.

The firm recently suspended freight shipping for roughly 1,400 customers to help relieve pressure on its network - which has been running at near full tilt for much of the pandemic.

FedEx expects the labor situation to improve over the next two or three months as it starts preparing for the peak holiday shipping season, CFO Lentz said.

The pandemic created so much demand for package delivery and freight services that FedEx and rival United Parcel Service Inc (UPS.N) are turning away some business.

That means customers means are less likely to push back when the carriers raise fees and add surcharges, said Edward Jones analyst Matt Arnold.

Still, Arnold said labor could continue to be an issue going into the holidays.

FedEx also reported a slightly higher than expected increase in profit and revenue for the fourth quarter that ended May 31.

Adjusted net income nearly doubled to $1.36 billion, or $5.01 per share, from the year-earlier quarter. Revenue increased 30% to $22.6 billion.

Analysts had expected fourth-quarter earnings of $4.99 per share and revenue of $21.5 billion, according to Refinitiv.

FedEx shares finished the regular trading session up roughly 150% from March 1, 2020 - some two weeks before U.S. states and jurisdictions began closing businesses to curb the spread of the coronavirus.

The Thomson Reuters Trust Principles.

China's Bitmain suspends sales of cryptomining machines after Beijing's mining ban

(Reuters) - Bitmain, China's biggest maker of cryptocurrency mining machines, said it had suspended sales of its products in the spot market to help ease selling pressure following Beijing's ban on bitcoin mining.

Bitmain also said it is looking for "quality" power supplies overseas along with its clients, in places including the United States, Canada, Australia, Russia, Kazakhstan and Indonesia.

China's State Council, or cabinet, vowed to crack down on bitcoin trading and mining in late May, seeking to fend off financial risks.

Answering Beijing's call, China's main cryptocurrency mining hubs, including Inner Mongolia, Xinjiang, Yunnan and Sichuan, have all published detailed measures to root out the business. read more

Following the ban, many Chinese miners are selling machines and exiting the business, or shipping machines overseas.

"(Overseas) mining sites are not built overnight, and selling pressure is huge in the secondary market," Bitmain said in a statement.

"To help smooth transition of the industry," Bitmain has decided to suspend selling its Antminer machines globally.

Bitmain said overseas markets where it and Chinese miners are seeking cheap electricity also include Belarus, Sweden, Norway, Angola and Congo.

The Thomson Reuters Trust Principles.

BlackBerry first-quarter revenue beats expectations, shares rise

(Reuters) - Canadian security software supplier Blackberry Ltd (BB.TO), beat Wall Street estimates for quarterly revenue on Thursday, lifted by a rebound in demand for its QNX operating software and cybersecurity products.

U.S.-listed shares of the company were up 1.3% at $12.84 in extended trading.

Revenue fell to $174 million in the first quarter ended May 31 from $206 million a year earlier, but beat analysts' average estimate of $171.25 million, according to Refinitiv-IBES data.

Demand for cybersecurity services have been on the rise as businesses increasingly migrate to cloud-based computing to support remote work during the COVID-19 pandemic.

A boom in electric-vehicle sales has also bolstered demand for BlackBerry's QNX software, primarily used in cars.

Net loss in the quarter narrowed to $62 million, or 11 cents per share, from $636 million, or $1.14 cents per share, a year earlier.

The company was also one of the "meme stocks" that received major attention from investors after a social-media driven retail short-squeeze frenzy. BlackBerry's shares are up over 90% so far this year.

The Thomson Reuters Trust Principles.

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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