Major International Business Headlines Brief::: 27 June 2021

[Bulls n Bears]

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Major International Business Headlines Brief::: 27 June 2021

 


 

 


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ü  Microsoft says new breach discovered in probe of suspected SolarWinds hackers

ü  J&J to pay $263 mln in New York opioid settlements, avoids trial

ü  U.S. consumer spending takes breather amid shortages; inflation rises

ü  VW to end sales of combustion engines in Europe by 2035

ü  Rwanda, DR Congo Sign Three Bilateral Agreements

ü  Tanzania in Talks With Chinese Investor to Revive Bagamoyo Port, Says President Samia

ü  Tanzania: Samia's 100 Days in Office - Emerging Economic Trends

ü  Nigeria: New Forex Measures May Further Crash Naira, Onuesoke Warns CBN

ü  Mozambique - African Development Bank and Italian Technical Cooperation Fund Extend €990,000 Grant to Boost Agricultural Value Chains

ü  Ethiopia: Berbera Port First Phase Container Terminal Expansion Starts Operation

ü  Tesla recalls nearly 300,000 cars in China over cruise control safety issue

ü  Toshiba director resigns warning of more instability at company

ü  China industrial profits rise 36.4% y/y in May, weaker than April

ü  Bitcoin Billionaire Issues Stark Warning Over ‘Trillion-Dollar’ Mistake Amid Extreme Crypto Price Volatility

 

 

 

 

 

 

 

 


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Microsoft says new breach discovered in probe of suspected SolarWinds hackers

(Reuters) - Microsoft (MSFT.O) said on Friday an attacker had won access to one of its customer-service agents and then used information from that to launch hacking attempts against customers.

 

The company said it had found the compromise during its response to hacks by a team it identifies as responsible for earlier major breaches at SolarWinds (SWI.N) and Microsoft.

 

Microsoft said it had warned the affected customers. A copy of one warning seen by Reuters said the attacker belonged to the group Microsoft calls Nobelium and that it had access during the second half of May.

 

"A sophisticated Nation-State associated actor that Microsoft identifies as NOBELLIUM accessed Microsoft customer support tools to review information regarding your Microsoft Services subscriptions," the warning reads in part. The U.S. government has publicly attributed the earlier attacks to the Russian government, which denies involvement.

 

When Reuters asked about that warning, Microsoft announced the breach publicly.

 

After commenting on a broader phishing campaign it said had compromised a small number of entities, Microsoft said it had also found the breach of its own agent, who it said had limited powers.

 

The agent could see billing contact information and what services the customers pay for, among other things.

 

"The actor used this information in some cases to launch highly-targeted attacks as part of their broader campaign," Microsoft said.

 

Microsoft warned affected customers to be careful about communications to their billing contacts and consider changing those usernames and email addresses, as well as barring old usernames from logging in.

 

Microsoft said it was aware of three entities that had been compromised in the phishing campaign.

 

It did not immediately clarify whether any had been among those whose data was viewed through the support agent, or if the agent had been tricked by the broader campaign.

 

Microsoft did not say whether the agent was at a contractor or a direct employee.

 

A spokesman said the latest breach by the threat actor was not part of Nobelium's previous successful attack on Microsoft, in which it obtained some source code.

 

In the SolarWinds attack, the group altered code at that company to access SolarWinds customers, including nine U.S. federal agencies.

 

At the SolarWinds customers and others, the attackers also took advantage of weaknesses in the way Microsoft programs were configured, according to the Department of Homeland Security.

 

Microsoft later said the group had compromised its own employee accounts and taken software instructions governing how Microsoft verifies user identities.

 

A White House official said the latest intrusion and phishing campaign was far less serious than the SolarWinds fiasco.

 

"This appears to be largely unsuccessful, run-of-the-mill espionage," the official said.

 

Scott McConnell, a spokesman for Homeland Security's Cybersecurity and Infrastructure Security Agency, said the defensive group “is working with Microsoft and our interagency partners to evaluate the impact. We stand ready to assist any affected entities.”

 

The Thomson Reuters Trust Principles.

 

 

J&J to pay $263 mln in New York opioid settlements, avoids trial

(Reuters) - Johnson & Johnson (JNJ.N) said on Saturday it will pay $263 million to resolve claims it fueled an opioid epidemic in New York state and two of its largest counties.

 

The settlements remove the drugmaker from a jury trial scheduled to begin on Tuesday on Long Island, where several big opioid makers and distributors are also defendants.

 

Johnson & Johnson did not admit liability or wrongdoing in settling with New York state, and with Nassau and Suffolk counties. The $229.9 million state settlement also calls for J&J to stop selling the painkillers nationwide.

 

“The opioid epidemic has wreaked havoc" across the nation, New York Attorney General Letitia James said in a statement. "Johnson & Johnson helped fuel this fire."

 

She said her focus remains "getting funds into communities devastated by opioids as quickly as possible."

 

J&J said the settlements were consistent with its prior agreement to pay $5 billion to settle opioid claims by states, cities, counties and tribal governments nationwide.

 

The healthcare company and the largest U.S. drug distributors - AmerisourceBergen Corp (ABC.N), Cardinal Health Inc (CAH.N) and McKesson Corp (MCK.N) - have proposed paying a combined $26 billion to end thousands of opioid lawsuits.

 

J&J has also been appealing an Oklahoma judge's 2019 ruling that the New Brunswick, New Jersey-based company pay that state $465 million for its deceptive marketing of opioids.

 

Tuesday's opioids trial is one of several scheduled for this year, with others underway in California and West Virginia.

 

Drugmakers AbbVie Inc (ABBV.N) and Teva Pharmaceutical Industries Ltd (TEVA.TA) and several distributors are among the defendants. Pharmacy chain Walgreens Boots Alliance Inc (WBA.O) is also a defendant, though it was sued only by the counties.

 

Walmart Inc (WMT.N), Rite Aid Corp (RAD.N) and CVS Health Corp (CVS.N) were severed from the trial during jury selection. CVS has settled with Nassau and Suffolk counties. Settlement terms have not been disclosed.

 

The U.S. Centers for Disease Control and Prevention has said nearly 500,000 people died from opioid overdoses from 1999 to 2019.

 

The Thomson Reuters Trust Principles.

 

 

U.S. consumer spending takes breather amid shortages; inflation rises

(Reuters) - U.S. consumer spending paused in May as shortages hurt motor vehicle purchases, but the supply constraints and increased demand for services helped to lift prices, with the Federal Reserve's main inflation measure rising by the most in 29 years.

 

There was, however, some good news on inflation. Consumers this month perceived higher inflation to be temporary, a survey showed on Friday, aligning with the views of Fed Chair Jerome Powell and Treasury Secretary Janet Yellen. Consumers' inflation expectations are key as they can influence households' behavior.

 

With at least 150 million Americans fully vaccinated against COVID-19, which is allowing the economy to reopen and people to travel, dine out and engage in other activities that were restricted during the pandemic, consumer spending is expected to pick up in the coming months. Trillions of dollars in excess savings and rising household wealth due to gains in stock prices and home values are expected to provide a powerful tailwind.

 

"Spending growth will shift to services from goods, and drive a strong economic recovery throughout the rest of 2021 and all of 2022," said Gus Faucher, chief economist at PNC Financial in Pittsburgh. "The biggest drags are higher prices for some goods and services and shortages due to production bottlenecks."

 

The unchanged reading in consumer spending, which accounts for more than two-thirds of U.S. economic activity, followed an upwardly revised 0.9% jump in April, the Commerce Department said. Consumer spending was previously reported to have increased 0.5% in April. Economists polled by Reuters had forecast consumer spending would rise 0.4% in May.

 

Motor vehicles and some household appliances are scarce because of supply bottlenecks stemming from the pandemic. A global shortage of semiconductors is hampering motor vehicle production. Spending is also starting to shift back to the services part of the economy, which accounts for two-thirds of consumer spending, though the pace last month was insufficient to offset the drag from goods.

 

Spending on services rose 0.7%, led by recreation, restaurants and hotels as well as housing and utilities. Spending on goods fell 1.3%, with outlays of long-lasting goods like motor vehicles tumbling 2.8%. Goods spending surged as the pandemic confined people to their homes.

 

The personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, increased 0.5% after advancing 0.7% in April. In the 12 months through May, the so-called core PCE price index shot up 3.4%, the largest gain since April 1992. The core PCE price index rose 3.1% on a year-on-year basis in April.

 

The core PCE price index is the Fed's preferred inflation measure for its flexible 2% target. Year-on-year inflation is accelerating in part as last spring's weak readings drop from the calculation.

 

Stocks on Wall Street were trading largely higher, with the S&P 500 index (.SPX) hitting a record high as investors focused on the moderation in the monthly inflation reading. The dollar slipped against a basket of currencies. U.S. Treasury prices were mostly lower.

 

NO RUNAWAY INFLATION

 

Though the so-called base effects likely peaked in May, inflation will probably remain high in the near term because of the supply constraints and worker shortages, which are boosting wage growth.

 

"While we foresee increased inflation stickiness, with core PCE inflation hovering around 3.0% in the second half (of the year), we don't foresee runaway inflation," said Lydia Boussour, lead U.S. economist at Oxford Economics in New York.

 

Consumers seem to agree. The University of Michigan consumer survey's one-year inflation expectation dropped to 4.2% in June from a decade-high 4.6% in May. The survey noted that "consumers also believed that the price surges will mostly be temporary."

 

The five-to-10-year inflation expectation fell to 2.8% this month from 3.0% in May. Fed officials put more emphasis on the five-to-10-year series. read more

 

Powell acknowledged this week that "inflation has increased notably in recent months," but told lawmakers that the U.S. central bank "will not raise interest rates preemptively because we fear the possible onset of inflation."

 

When adjusted for inflation, consumer spending fell 0.4% last month after rising 0.3% in April. Despite May's drop in the so-called real consumer spending, consumption is running higher than its pace in the first quarter.

 

Gross domestic product growth estimates for this quarter are around a 9% annualized rate, which would be an acceleration from the 6.4% pace logged in the first quarter. Economists believe the economy could achieve growth of at least 7% this year. That would be the fastest growth since 1984. The economy contracted 3.5% in 2020, its worst performance in 74 years.

 

In addition to the supply squeeze, the ebbing boost from government stimulus checks likely restrained consumer spending last month. Transfer payments from the government dropped 11.7%. That resulted in personal income falling 2.0% after declining 13.1% in April.

 

But there is ample fuel to drive spending. Wages gained 0.8% after rising 1.0% in April. The saving rate fell to a still-lofty 12.4% from 14.5% in April. Households accumulated at least $2.5 trillion in excess savings during the pandemic.

 

>From July through December some households will receive income under the expanded Child Tax Credit program, which will soften the blow of an early termination of government-funded unemployment benefits in 26 states.

 

The Thomson Reuters Trust Principles.

 

 

VW to end sales of combustion engines in Europe by 2035

(Reuters) - German carmaker Volkswagen (VOWG_p.DE) will stop selling combustion engines cars in Europe by 2035 as it shifts to electric vehicles, but later in the United States and China, a board member was quoted as saying on Saturday.

 

"In Europe, we will exit the business with internal combustion vehicles between 2033 and 2035, in the United States and China somewhat later," Klaus Zellmer, Volkswagen board member for sales, told the Muenchner Merkur newspaper.

 

"In South America and Africa, it will take a good deal longer due to the fact that the political and infrastructure framework conditions are still missing."

 

By 2050 at the latest, the entire Volkswagen fleet should be CO2-neutral, Zellmer told the newspaper.

 

In Europe, he is aiming for electric cars to account for 70% of total sales by 2030. This would prepare the company for a possible tightening of the European Union's climate targets and even go beyond them.

 

EU policymakers have clamped down on exhaust emissions, forcing carmakers to spur development of low-emission technology or face penalties if they exceed limits on CO2 emissions.

 

The Thomson Reuters Trust Principles.

 

 

Rwanda, DR Congo Sign Three Bilateral Agreements

Ministers from Rwanda and the DR Congo on Saturday, June 26, signed three key bilateral agreements as the two countries look to further enhance trade and diplomatic ties.

 

This happened during a bilateral meeting held between President Paul Kagame and his host, Félix Tshisekedi, at the Goma Serena Hotel, in Goma, capital of DR Congo's North Kivu Province.

 

A bilateral investment treaty, a double taxation avoidance agreement, as well as an MoU on a mining concession, were the three agreements signed by the two countries' Ministers and witnessed by their respective Presidents at the hotel located on the shores of Lake Kivu.

The agreements were signed shortly after the two leaders held a tête-à-tête that lasted nearly an hour, inside a white tent.

 

Afterward, the presidents held a joint press conference in which they emphasised the need for enhanced bilateral cooperation for the benefit of the two countries' people.

 

Kagame said they had broad and productive exchanges on issues that will benefit their respective citizens.

 

"We signed a number of agreements and I believe this is just the beginning. There are many areas in which we can cooperate to build a solid relationship, but also a basis for cooperation," Kagame said.

 

Among others, Tshisekedi noted that they are keen on checking non-tariff barriers and fraud in an effort to improve cross-border trade.

 

Kagame was on Saturday received by Tshisekedi, in Goma, as he paid a reciprocal visit following the latter's visit to Rubavu, Rwanda.

On Friday, Tshisekedi was received by Kagame at La Corniche One-Stop Border Post. The two Heads of State then proceeded to tour the City of Rubavu and assess damages caused by recent earthquakes which followed Nyiragongo volcanic eruption.

 

In Goma, the Presidents also visited areas damaged by the Nyiragongo volcanic eruption before they held bilateral talks.

 

Mount Nyiragongo in eastern DR Congo, is one of the world's most active volcanoes. It erupted last month, sending panicked residents of the city of Goma fleeing to other places in their country as well as into Rwanda.

 

Last month, an evaluation of the situation by the Rwanda Environment Management Authority (REMA), following the eruption of Nyiragongo, ruled out an explosion of gas on Lake Kivu.

 

Strategic trading partner

 

The DR Congo is Rwanda's strategic trading partner, being the main destination for Rwanda's informal exports.

In the recent past, both countries have been, among others, exploring opportunities for joint investment projects and strengthening trade of goods and services between the two countries.

 

Early last year, President Tshisekedi met Rwanda's then Minister of Trade and Industry, Soraya Hakuziyaremye, along with Foreign Affairs Minister, Dr. Vincent Biruta, in Kinshasa, to discuss ways in which the countries can increase their economic and trade ties.

 

Discussions at the time were in line with the vision shared by President Kagame that Intra-African trade be pursued in view of the African Continental Free Trade Area (AfCFTA) start of trading launched earlier in January 2021.

 

Before the Covid-19 pandemic hit, trade between Rwanda and DR Congo had been growing at a double-digit rate, annually, since 2012.

 

In April 2019, national carrier RwandAir launched its maiden commercial flight to DR Congo's Kinshasa's Ndjili International Airport boosting business and strengthening commercial ties between the two countries.

 

Peace and security

 

Besides enhancing bilateral economic and trade ties, ever since he came to power, Tshisekedi put emphasis on peace and security.

 

His vast country is home to militia groups including those that originated from Rwanda. Intelligence officials from both countries regularly share information as the Congolese army continues to battle these militia groups.

 

Tshisekedi on Saturday stressed that the two countries have lost so many years due to tensions and instability, noting that "enough is enough."

 

It is time to enjoy the fruits of peace and security, he said.

 

"We won't stop here. This is just the beginning. My principal priority is to develop fraternal relations with our neighbours. We have so much to gain by working together," Tshisekedi said.

 

During his term, among others, Tshisekedi particularly decided that the east of his vast country must be purged of the FDLR, remnants of the genocidal army and militia that perpetrated the 1994 genocide against the Tutsi in Rwanda.

 

The Congolese army has in the past two years moved in decisively and battled anti-Rwandan militia including the FDLR and other splinter groups based there.

 

President Kagame noted that his Congolese counterpart "put a sense of urgency" to the problem of security and instability that has been going on for years.

 

Hundreds of militia fighters were captured and repatriated to Rwanda while others were killed in battle with the Congolese army. Hundreds of their civilian dependents have also been returned home, rehabilitated and reintegrated into society.

 

"The lack of security, peace and stability cannot be things that are going to be permanent," Kagame said, explaining why the two countries resolved to cooperate in dealing with root causes of insecurity and instability.

 

"It is easier if all of us work together."-New Times.

 

 

Tanzania in Talks With Chinese Investor to Revive Bagamoyo Port, Says President Samia

Dar es Salaam — President Samia Suluhu Hassana has said that the Government has begun talks to revive the Bagamoyo Port construction project.

 

She however said national interest will be of priority as they hold the talks.

 

President Samia was speaking on June 26, 2021 during the 12th Summit of Tanzania National Business Council (TNBC), where she is the Chairman.

 

"Regarding the Bagamoyo Port project, let me give you the good news that we have started talks to revive the whole project. We are going to start talks with the investors that came for the project with the aim of opening it for the benefit of our nation," she said and added;

 

"As for Mchuchuma and Liganga, I have given instructions, the government is in talks with the Investors to see what the problem is, the government can dedicate itself because the Investor has given up and now steel prices in the world market has risen, it is time to speed up the project."

The $10 billion Bagamoyo project construction was suspended by late president, John Magufuli on January, 2016.

 

The project, which broke ground four years ago and was set to be run by China Merchants Holding International (CMHI,, would have been the largest port in East Africa and was a key component in China's $900-billion Belt and Road Initiative, an ambitious transnational infrastructure building program.

 

He accused the Chinese project backers of presenting "exploitative and awkward" terms in exchange for financing. Chinese financiers set "tough conditions that can only be accepted by mad people,"

 

"They told us once they build the port, there should be no other port to be built all the way from Tanga to Mtwara south," said Magfuli and added;

 

"They want us to give them a guarantee of 33 years and a lease of 99 years, and we should not question whoever comes to invest there once the port is operational. They want to take the land as their own but we have to compensate them for drilling construction of that port."

 

Magufuli also argued the construction of Bagamoyo port, whose foundation stone was laid by his predecessor Jakaya Kikwete, would undermine the ongoing $522-million expansion of Dar es Salaam port that would enable it triple its current capacity when complete by the end of 2019.

 

In addition, Magufuli said the $50-million given out to compensate those displaced by the new port project "did not reach the beneficiaries in Bagamoyo but was diverted to benefit few individuals in Dar es Salaam."-Citizen.

 

 

Tanzania: Samia's 100 Days in Office - Emerging Economic Trends

It is now about 100 days since President Samia Suluhu Hassan was sworn-in as the 6th President of Tanzania on March 19, 2021 following the death of her predecessor, President John Magufuli, two days earlier. It is normal across the world to make a general assessment of a top leader's first 100 days in office. The purpose is to paint a broad picture of the performance of the leader in question.

 

Assessment of 100 days aims at identifying major emerging trends in various aspects that point to the kind of presidency to be expected in one's tenure. Herein below, I outline major emerging trends in the economy under President Hassan.

 

Business environment

 

In the first 100 days, the President's perspectives on business environment and investment climate has been very clear in words and deeds.

 

In line with the wishes of captains and titans of the industry, she has been very clear on the need for good, friendly, conducive and supporting business environment and investment climate. This is a very broad area including predictable legal, policy and regulatory frameworks. Others include issues related to infrastructure, skills and talent in the labour force, fiscal issues and others needed to attract and retain investors.

Tax space

 

In the first 100 days of her Presidency she has signalled implementation of good fiscal policy and fiscal policy instruments. There are signals of friendly and relaxed rather than cohesive taxation; expansionary rather than contractionary fiscal policy and taxing better than just taxing more. It is about making the tax component of business environment and investment climate in Tanzania better. There are signals of solving tax stakeholders' complaints.

 

They include issues around predictability of the legal, policy and regulatory frameworks; relatively huge number of taxes and high tax rates; delays in tax refunds; inadequate customer service by the taxman; lack of one stop centre for tax payments; issues around tax appeals process; issues around the use of electronic fiscal devices (EFDs); non-realistic estimations; inadequate participatory approaches in tax matters and much more.

Private sector

 

The President's has been very clear on her support to the private sector. This is mainly seen in the context of her directives on business environment in its very broad sense. Among her very clear and loud sound on this is on the tax matter. Another one is on her trip to Kenya that involved meeting both the Kenyan and Tanzanian private sector. All these are very positive signals for better times ahead for the private sector.

 

Liberal economics

 

The first 100 days have signalled more free and liberal market economy ahead.

Good as liberalism is, it is clear in the President's tone that all will be within the ambit of Tanzanian laws, policies and regulations and correctly so. What will be needed include having smart regulations that will not inhibit businesses.

 

Economic diplomacy

 

Economic diplomacy is among her top agenda. It has been seen in, among others, her speeches when swearing-in of ministers, in the Parliament and in her trip to Kenya. Key issues in economic diplomacy include attracting and retaining investments and businesses.

 

Local content

 

The President has shown the need for local content in the economy. It is about having the needed quantity and quality of domestic factor inputs in production processes. It includes the share of employment and sales of goods and services locally supplied at each stage of various value chains and their nodes. It entails inclusion of competent local companies in production of goods and services.

 

Fourth Industrial Revolution

 

The President's perspectives on the Fourth Industrial Revolution (FIR) can be proxied by her directives on cryptocurrencies. She has directed the Bank of Tanzania to ensure that we are not caught by surprise and left out by the world in the cryptocurrencies space. This is among the key aspects of the FIR. Others include but are not limited to Internet of Things, Autonomous Vehicles such as drones, 3D printing and many others. The key broad message from the President's directive on cryptocurrencies is for Tanzania's economy to be future-ready in all aspects.

 

Going forward...

 

It is very important to continuously learn, engage, align and advise accordingly on the emerging major economic trends under the President. The purpose is to move Tanzania into newer and higher economic heights.-Citizen.

 

 

Nigeria: New Forex Measures May Further Crash Naira, Onuesoke Warns CBN

Warri — Chairman and Managing Director of DAS Energy Services, Udu in Delta State, Chief Sunny Onuesoke has warned that the new foreign exchange measures introduced by the Central Bank of Nigeria (CBN) would rather crash the Naira further instead of salvaging it.

 

Onuesoke, who spoke to journalists at Asaba International Airport, Asaba, Delta State yesterday while returning from a Lagos trip said the problem with the new exchange rate policy was that it was designed for the elites with government connections.

 

He maintained that the government does not truly have the foreign reserve, or the economic prudence to realistically defend the naira, so it's half measures were making a bad situation worse by creating two exchange rates.

According to him, "One is for highly placed Nigerians, government lackeys and the other for everyone else. The official rate is not backed by any known economic principles. It is simply arbitrarily chosen

 

"This rate cannot be sustained and made accessible to everyone who needs foreign exchange. Because of this, there is a flow over to the so called black market, where the rate is determined by market principles of demand and supply."

 

The Businessman warned that the racketeers might hijack the CBN's gesture and that it was not sustainable, just as he observed that those applying for Foreign Exchange for PTA might be doing so for the arbitrage.

 

He observed, "With little regard to the precarious inflow of foreign exchange, money deposit bank (MDBs) advertise availability of foreign currency for would-be travelers and bureau de change (BDCs) get enhanced supply of foreign currency at below Nigerian Autonomous Foreign Exchange (NAFEX) rate. The hope is to lower the expectation of Naira depreciation, but it does not work out that way."

He noted that the (CBN) would run out of firepower, after which the slide of the local currency would continue.

 

"Those who otherwise will not travel do and those who have full information enter the market for the purpose of arbitrage because they know that the policy will not last. The supply splurge is from the CBN. When it exhausts its fire power, the slide in the exchange rate will resume," he noted.

 

He advised that if the government stop subsidising the elites, the value of the Naira would initially plummet until the market finally stabilises and the free market forces takes over, adding that the rise and fall of the naira would be determined by how well or how bad the economy is being managed.

"The exchange rate would be more stable and organisations and individuals can plan ahead. We can then begin to produce most of what we consume, which would further enhance the value of the naira.

 

"All these may take a while to achieve, but to do nothing would be catastrophic. The government can begin by banning foreign education or medical tourism, invest in our universities and hospitals, bring them to world standards and they would not only be patronized by Nigerians alone but by other nationals.

 

"Our universities trained many Africans from all over Africa, it can still be done. It's a shame that we have deteriorated to such a shameful level," he stated.

 

Last week, both the World Bank and the International Monetary Fund (IMF) sought full harmonisation of the different exchange, saying it was a necessary action point to achieve stability. Though they commended the adoption of NAFEX for official transactions, they noted that a broader reform would be required to a market that supports growth.

 

Recall that the Central Bank had, last month, discarded the previous official rate for NAFEX, otherwise known as investors' and exporters' (I&E) window, on which the monetary authority had promised to pursue rate harmonisation.-This Day.

 

 

Mozambique - African Development Bank and Italian Technical Cooperation Fund Extend €990,000 Grant to Boost Agricultural Value Chains

The African Development Bank, with financing from the Italian Technical Cooperation Fund, has provided a €990,000 grant to help smaller agro-processing enterprises boost production and quality control.

 

The project will enable the businesses to better tap into national and regional markets and capitalize on the opportunities created by the African Continental Free Trade Area. The Confederation of Business Associations of Mozambique is the implementing agency.

 

"We are pleased to receive this grant from the African Development Bank and the Italian Technical Cooperation Fund, which will benefit about 300 agro-processing and agribusiness Small and Medium-sized Enterprises (SME) associations in Mozambique, particularly youth and women-led SMEs operating along the development corridors of Nacala-Beira-Pemba-Lichinga," said Dr. Agostinho Vuma, President of the Confederation of Business Associations of Mozambique, at the ceremony to hand over the grant funding.

 

"The grant is apt to further step up the intense bilateral relations in the agriculture area built through the many projects financed by the Italian cooperation and that it can act as a catalyst to extend it to the private sector where it exists a huge and largely untapped potential," underlined the Italian Ambassador Dr. Gianni Bardini.

 

African Development Bank country manager Dr. Pietro Toigo noted that the grant would provide critical support to Mozambique, especially amid the socioeconomic challenges posed by the Covid-19 pandemic. "We are pleased to partner with the CTA and the Government of Italy to support Mozambican SMEs recover from the COVID pandemic and scale up their competitiveness, as part of the African Development Bank's commitment to help Industrialise Africa and Mozambique," he said.

 

The project supports the goals of Mozambique's Country Strategy Paper (2018-2022), which focuses on two strategic pillars: infrastructure investments that enable transformative inclusive growth and job creation, and agricultural transformation and value chain development.

 

The Minister of Industry and Trade, Dr. Carlos Alberto Fortes Mesquita, highlighted the importance of such initiatives and their catalytical role in promoting Mozambique's agriculture modernization and the industrialization of critical sectors of the economy.

 

Recently the Bank approved a $1 million grant to boost local content and the development of initiatives of small and medium enterprises.-African Development Bank.

 

 

Ethiopia: Berbera Port First Phase Container Terminal Expansion Starts Operation

ADDIS ABABA - The first phase expansion of Berbera port container terminal has officially inaugurated and started operation to accommodate huge ships, Ethiopian Transport Minister announced from Berbera.

 

A high-level government delegation led by Ahmed Shide, Minister of Finance has visited the first phase of expansion and modernization of Berbera port, Ethiopia's Transport Minister disclosed adding Minister Dagmawit was member of the delegation.

 

Minister Dagmawit announced that the first phase expansion of the Berbera container terminal has started its operation and ready to accommodate heavy ships with modern infrastructure after it officially inaugurated from yesterday.

 

Dagmawit stated that Ethiopia has launched a 10 year economic plan and the operation of Berbera Port would help support in facilitating Ethiopia's import-export freight.

 

Finance Minister Ahmed Shide on his part noted that completion and starting operation of the first phase expansion of Berbera Port will boost regional economic integration and will play crucial role for Ethiopia's ever-growing import-export transaction.

 

Somali Land President Musa Bihi on his part said that Somali Land will provide standard port service to Ethiopia and will work cooperatively for the safe transportation and delivery of freights from the port to Ethiopia, Somali Mass Media Agency reported.

 

It was leant that the first expansion phase of Berbera Port is believed to accommodate over one million containers annually with modern infrastructures, in ship-to-land and mobile cranes. Expansion of Berbera Port is being underway by the joint agreement of Ethiopia, Somali Land and DP World with 19, 30 and 51 percent shares respectively.-Ethiopian Herald.

 

Tesla recalls nearly 300,000 cars in China over cruise control safety issue

(CNN)Tesla (TSLA) began recalling more than 285,000 vehicles in China on Saturday over a safety risk concerning the vehicle's cruise control feature.

 

The cruise control system in certain models can be activated when drivers try to shift gears or accidentally touch the gear selector, resulting in accidental acceleration, according to China's State Administration for Market Regulation.

 

The recall includes 35,665 imported Model 3 vehicles and 249,855 Model 3 and Model Y vehicles made in Tesla's factory in Shanghai. Customers will not be required to return the vehicles. Instead, they will receive a free software update either remotely or in-person to resolve the issue.

 

Tesla apologized for the recall on Saturday in a statement posted on its official Weibo account, one of China's most popular social media sites. Tesla said it will keep improving in accordance with China's safety regulations.

 

"We apologize for any inconvenience this may cause to our car owners. In the meantime, Tesla will strictly follow national regulations and keep improving our safety protection, adamantly providing an excellent and safe driving experience to our customers," the automaker said.

 

China has proven to be a difficult market for Tesla. The company has had five Chinese regulatory agencies questioning the quality of its Shanghai-made Model 3 cars.



The electric car leader sold fewer than 26,000 cars in China in April, down 27% from March, according to figures released by the China Passenger Car Association. The drop came as Chinese electric vehicle manufacturers such as Nio (NIO), Xpeng, and Li Auto, all reported improved domestic sales.-cnn

 

 

 

Toshiba director resigns warning of more instability at company

Shareholders in Toshiba have prolonged “instability and uncertainty” at the troubled conglomerate with their shock vote to remove the chair of the company’s board, said a director who saw no choice but to resign following last Friday’s investor revolt.

 

In exclusive remarks made to the Financial Times following his sudden resignation on Friday, George Olcott expressed strong misgivings about the vote to oust Osamu Nagayama — a man he described as one of the few Japanese business leaders able to oversee a turnround on the scale now required by Toshiba.

 

“Removing him as chair only serves to prolong instability and uncertainty in addition to depriving the board of an outstanding leader. I cannot understand how this development represents a good outcome for the company or any of its stakeholders,” said Olcott, a former investment banker at SG Warburg who sits on the boards of several Japanese companies.

 

His remarks follow Toshiba’s annual general meeting (AGM) last Friday — held after months of deepening turmoil for the company and a period of unprecedented victories for shareholder activists operating in Japan.

 

Nagayama’s removal by shareholders at the AGM followed calls by some investors for the entire board to be removed as a consequence of repeated leadership failures at a company that many see as rich with valuable technology and growth potential.

 

“I believe that Mr Nagayama’s plan to plot a new course for Toshiba to improve its corporate value was ambitious, but realisable and I was looking forward to helping him and the board in this endeavour,” said Olcott.

 

But others strongly rejected Olcott’s warning of instability at Toshiba, asserting instead that, despite the messiness of the process, the past two weeks had removed the main lightning rods of shareholder mistrust of Toshiba’s leadership.

 

Raymond Zage, a non-executive director of Toshiba said the immediate aftermath of last Friday’s AGM had put the board in a state of unity and clarity on the issues in need of attention.

 

“The root cause of instability at Toshiba is the result of a loss of trust from our shareholders, and the independent investigation confirmed that this loss of trust was warranted. We are fully focused on the need to restore this trust and also the importance of providing stability and certainty for our employees and customers,” Zage told the FT.

 

Friday’s removal of Nagayama forces the company’s interim CEO, Satoshi Tsunakawa, to step in as interim board chair until Toshiba can convene an extraordinary general meeting to appoint a new leadership team that includes at least four new non-executive board members.

 

The AGM followed the release this month of an explosive independent report into the events surrounding Toshiba’s 2020 annual meeting. The report alleged collusion between the company and Japan’s government to suppress activist shareholders.

 

In the days leading up to last Friday’s AGM, an increasing number of large institutional shareholders told the FT they could not justify voting for Nagayama’s reappointment.

 

While Nagayama took his roles as board chair and head of the nomination committee after the 2020 AGM, they argued he should be held responsible for the handling of Toshiba’s own investigation, which concluded there were no problems. 

 

But other figures have also waded into the debate in his defence, including John Roos, Barack Obama’s former ambassador to Tokyo, who released a statement ahead of the AGM praising Nagayama as “an agent of positive change, not a protector of the status quo.”

 

 

 

China industrial profits rise 36.4% y/y in May, weaker than April

(Reuters) - Profits at China’s industrial firms rose 36.4% in May from a year earlier to 829.92 billion yuan ($128.58 billion) official data showed on Sunday.

 

That was a slowdown from the 57% surge reported in April, according to National Bureau of Statistics.

 

The industrial profit data covers large firms with annual revenue of over 20 million yuan from their main operations.

 

For the January-May period, industrial firms’ profits grew 83.4% from the same period a year earlier to 3.42 trillion yuan ($1 = 6.4545 Chinese yuan renminbi) 

 

 

 

Bitcoin Billionaire Issues Stark Warning Over ‘Trillion-Dollar’ Mistake Amid Extreme Crypto Price Volatility

I write about how bitcoin, crypto and blockchain can change the world.

 

Bitcoin and cryptocurrency prices have lurched back and forth over the last month with bitcoin now down around 50% from its April peak.

 

The bitcoin price rout was sparked by China's latest crackdown on bitcoin and crypto miners—who use high-powered computers to secure cryptocurrency blockchains and validate transactions in return for freshly created tokens.

 

Now, Michael Saylor, the chief executive of business intelligence software company-turned bitcoin accumulator Microstrategy, has warned China’s expulsion of bitcoin and crypto miners could be a "trillion-dollar" mistake.

 

"I think, given the bitcoin growth rate, this will prove to be a trillion-dollar mistake for China," said Saylor, speaking on Bloomberg TV, and pointing to China's "50% bitcoin market share" and bitcoin growing "100% year-over-year."

 

"It's a tragedy for Chinese miners [and] it's a geopolitical mistake for China the country—but I suppose they could afford to make a trillion-dollar mistake."

 

The bitcoin price has been hit over recent weeks by China’s latest bitcoin and crypto crackdown, which, along with Elon Musk's concerns over bitcoin's energy use, has wiped over $1 trillion from the combined cryptocurrency market.

 

Until recently, China is thought to have contributed over 50% to bitcoin's mining capacity, however, authorities in the country last month began ordering bitcoin and cryptocurrency miners to shut down their operations. According to state-backed newspaper The Global Times, 90% of bitcoin mines in China's Sichuan province were shuttered last weekend, sending the bitcoin price sharply lower.

 

"It's a nuisance and a dislocation for bitcoin in the near term, you can see the trading volatility," said Saylor. "A lot of Chinese had to sell bitcoin under forced liquidations and with a timeframe because they had to get out of the country and all their loans got pulled—so that's been a big opportunity for Western investors."

 

The U.S. has emerged as one of the primary destinations for bitcoin miners fleeing China. Last week, Miami mayor Francis Suarez said he's working to lower the cost of electricity in order to entice bitcoin miners to make the move to Florida.

 

"It's a great windfall for North American bitcoin miners whose costs are the same and they're going to generate 50% or 75% more revenue for a while because the China business has been taken offline," said Saylor.

 

On Monday, Microstrategy revealed it now owns more than 100,000 bitcoins after completing yet another bitcoin purchase, this time spending just under $500 million on some 13,000 coins—though Saylor said he'd have been willing to pay a lot more.

 

"Companies like mine bought bitcoin in the $30,000 range, we'd have paid double or even triple if it hadn't been for the China exodus, so we got a benefit from that."

 

 

 

 

 


 


 


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.

 


 

 


(c) 2021 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:  <mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77 344 1674

 


 

 

 

 

 

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