Major International Business Headlines Brief::: 05 March 2021

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Major International Business Headlines Brief::: 05 March 2021

 


 

 


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

 


 

 


ü  China rebounds with economic growth target above 6%

ü  New York cinemas reopen but will people come?

ü  US suspends tariffs on single malt Scotch whisky

ü  Tesla partners with nickel mine amid shortage fears

ü  Budget 2021: Four things that critics say were missing

ü  Deliveroo unveils plans for '$7bn' London listing

ü  Reddit chief: I was late to spot GameStop stock mania

ü  Apple investigated in UK over 'unfair' App Store claims

ü  Surging bond yields push Asian shares to one-month lows

ü  White House says closely tracking Microsoft's emergency patch

ü  China says to promote U.S. business ties on basis of 'mutual respect'

ü  Oil prices surge as OPEC+ extends output cuts into April

 

 

 


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China rebounds with economic growth target above 6%

China is aiming for an economic growth rate above 6% in 2021, after
scrapping its target last year.

 

China's Premier Li Keqiang announced the target on Friday at the opening of
this year's National People's Congress.

 

The target marks a return to strong growth after the Covid-19 pandemic
impacted the world's second largest economy.

 

Although China's economy grew last year, it only managed 2.3% growth, its
weakest result in decades.

 

The new target highlights the Chinese economy's strong rebound after the
pandemic shutdowns led to a sharp 6.8% contraction in the first quarter of
2020.

 

The economy grew in the second half of 2020, and China was the only major
global economy to post gains for the year, although they were slender
compared to previous years.

 

Now the government hopes to continue that rebound.

 

"A target of over 6% will enable all of us to devote full energy to
promoting reform, innovation, and high-quality development," Premier Li
Keqiang said.

 

"In setting this target, we have taken into account the recovery of economic
activity."

 

By some measures the target appears modest, falling well below the
International Monetary Fund's estimate of 8.1% growth for China's economy
this year.

 

Other analysts are also tipping stronger growth.

 

"The consensus for the year is about 8%-9% but this is coming from a low
base. The focus is still on the quality versus the quantity of growth," said
Catherine Yeung, investment director at Fidelity International in Hong Kong.

 

In an analyst note, Bruce Pang from investment bank China Renaissance said
the more flexible target leaves some room for structural reform and a
transition to a more mature economy.

 

"We think it likely the target will be achieved, indicating that authorities
are shifting focus to the quality of growth instead of speed," he said.

 

Mr Li also set a target urban unemployment rate of around 5.5%, with a goal
of more than 11 million new urban jobs, up from nine million last year.

 

It also set a budget deficit goal of around 3.2% of gross domestic product.

 

However, the finance ministry expressed concern about the state of the
government budget.

 

"The outlook for government revenue and expenditure in 2021 appears quite
grave, with even greater difficulty in balancing the budget and risks in key
areas such as debt that cannot be overlooked," it said in a report released
at the start of the meeting.--BBC

 

 

 

New York cinemas reopen but will people come?

As soon as authorities announced that New York City cinemas could reopen on
5 March, Eric Thirteen was at his computer, ready to book tickets for the
first film he could find.

 

Before the pandemic, the 34-year-old, an independent film director and
producer, went to screenings three or four times a week. But he's been
largely homebound for nearly a year.

 

"It's a huge vacuum," he says. "I could see almost anything right now and
I'd probably be thrilled."

 

As cinemas reopen in New York - a key cultural capital in the US and one of
its biggest movie markets - the film world is watching to see just how
widely shared Eric's enthusiasm is.

 

Box office sales drop

The industry has been devastated by the pandemic, which drove down box
office sales by than 70% globally last year - and more than 80% in the US
and Canada, historically the world's biggest market.

 

The pressure has pushed dozens of smaller cinemas out of business, and
forced others into bankruptcy.

 

Although many places in the US have allowed theatres to reopen in some
capacity, audiences have largely stayed away, put off by health concerns and
the limited titles on offer for the big screen.

 

But now virus cases in the US are dropping and the vaccination campaign is
gaining momentum.

 

With New York reopening after nearly a year, cinema operators hope that Los
Angeles will follow. That might convince the film studios to stop postponing
the release dates for the big Hollywood movies that are such a big draw for
audiences.

 

"New York theatres opening is huge," says Paul Serwitz, president of
Landmark Theatres, a chain of 45 theatres focused on independent films,
which will reopen its New York venue, Quad Cinema, on Friday.

 

Mr Serwitz is not expecting an instant rebound - especially with current
rules in New York limiting capacity to 25%, or less than 50 people, per
screen.

 

The company closed its other New York location last summer, without clear
plans to reopen. In other cities, traffic at the company's open theatres
remains "paltry" - down 90% or more compared to what it was before the
pandemic.

 

"The hope is to start driving business and to get people back in the habit
and enjoying the experience and realising that it's safe and keeping our
losses to a minimum until business conditions allow for a more sustainable
operation," he says.

 

"We've had a lot of false starts and hopes being thwarted around people
returning to leisure activities and the movie theatre specifically," he
adds. "I have hopes that by the time we get to mid- to late-spring, we will
see a different reality."

 

'Pent-up demand'

Already there are encouraging signs, says Scott Rosemann who oversees
theatres in several US states for Reading International. The company runs
more than 55 cinemas in the US, Australia and New Zealand, including three
in New York under the Angelika brand.

 

"In other markets when we first opened, we knew people were reluctant to
come back," he says.

 

But some of his upcoming screenings in New York are sold out already.

 

"It's exciting," he says. "We just feel like there's strong pent-up demand."

 

After a year of fairly limited activity, bartender and actor Dave Marr
agrees. Though he has has held off buying tickets to see how reopening goes,
he's planning to book in the next few weeks.

 

"Obviously there's more important things than going to the movies," the
28-year-old says. "I'm just ready to go do something and this to me seems
reasonably safe and inexpensive."

 

Paul Dergarabedian, senior media analyst at Comscore, which tracks
movie-going around the world, says the movie industry's recovery can't start
without reopening in the New York City and the Los Angeles markets.

 

Together, the two areas account for more than 10% of North American ticket
sales - and as powerhouses of film production and media buzz, they cast an
even longer shadow. Their closures has even held up rebound overseas, where
many markets rely on Hollywood movies, he says.

 

"The percentage [of sales] that they represent belies the fact of how
important symbolically and culturally they are," he says. "It's just
incredibly essential to the industry that these markets open in order for
the business to come back."

 

But the challenges facing the cinemas go beyond the shutdowns.

 

Atmosphere at the screening of film "Back Door Channel: The Price Of Peace"
at Quad Cinema on September 18, 2011 in New York City. (Photo by Steve
Mack/Getty Images for NYC Media Group)

 

 

Since the announcement that New York City theatre restrictions would lift,
several operators - both major chains like Cineworld's Regal Cinemas and
small independent venues like Film at Lincoln Center and the Spectacle, a
tiny collectively-run cinema in Brooklyn - have opted to stay shut or
announced a later start date, citing health risks.

 

The pandemic has also spurred changes that will be difficult to reverse,
boosting the streaming services that threatened before the virus and pushing
companies like Disney to explore new ways of releasing movies that bypass
cinemas altogether.

 

Eric booked tickets for Nomadland, which stars Frances McDormand and just
won best drama at the Golden Globe awards. Though it's available to stream
online, he says for him, that's no replacement for sharing the viewing
experience with friends - and strangers - on the big screen.

 

And while he's been cautious about lockdown, wearing masks, avoiding eating
out and other activities, the capacity limits and other precautions have him
convinced the risks aren't much more than indoor dining, which also recently
reopened in the city.

 

"We're getting stir crazy and after a year you start to ask yourself some
hard existential questions," he says. "A life without film is not something
I would have signed up for."

 

But Eric's passion makes him a bit of an anomaly.

 

Surveys show the average US movie-goer went to the cinema fewer than five
times in 2019 - and last month, only about 50% reported feeling "very or
somewhat safe" going to the movies.

 

Phil Contrino, director of media and research at the National Association of
Theatre Owners, says it's clear that for many of his members the pain is not
over.

 

But he is confident that the pandemic has created pent-up demand for the
in-theatre experience, pointing to recent movie releases in the US, like Tom
& Jerry, which have garnered millions more sales than expected.

 

In markets where control of the virus has allowed for fewer restrictions,
the signs are even more encouraging he says, noting that China reported
record-breaking box office sales over its New Year holiday last month.

 

"China shows us that people are itching to get off their couches," he says.
"There's definitely going to be a boom ... but who knows how long that boom
is going to last?"--BBC

 

 

 

US suspends tariffs on single malt Scotch whisky

The US has agreed to suspend tariffs on UK goods including single malt
whiskies that were imposed in retaliation over subsidies to the aircraft
maker Airbus.

 

Tariffs will also be lifted on UK cheese, cashmere and machinery.

 

The duties will be suspended for four months while the two sides seek a
long-term settlement.

 

On 1 January, the UK dropped its own tariffs on some US goods, put in place
over a related dispute about US subsidies to Boeing.

 

It is the latest twist in a decades-old trade row that has seen the EU and
the US target billions of dollars worth of each other's exports with taxes.

 

The UK is part of the dispute as a former EU member. Airbus makes wings and
other parts in the UK, but assembles its commercial aircraft in the EU.

 

It has hit Scotch whisky producers particularly hard as the US is a key
export market. Distilleries have reported £500m of losses since 2019 due to
the tariffs.

 

Prime Minister Boris Johnson said the trade truce, due to come into force on
Monday, would boost British business.

 

"From Scotch whisky distillers to Stilton-makers, the US decision to suspend
tariffs on some UK exports today will benefit businesses right across the
UK," he tweeted.

 

"Fantastic news as we strengthen the UK-US trading relationship and work to
build back better from the pandemic."

 

Simon Cotton, boss of Speyside-based textiles firm Johnston's of Elgin, says
he's "absolutely delighted" the tariffs have been suspended.

 

The company, which employs 850 people, has been taking a "25% hit" on every
knitwear product it exports to the US - "a significant cost" at a time when
Covid and Brexit also pose challenges.

 

In Speyside many other businesses have felt the impact of the US tariffs,
including whisky distilleries and shortbread makers.

 

"This has been a particularly difficult tax for the businesses here, so it's
a huge relief for the region," says Mr Cotton. "We're hoping this paves the
way for a permanent removal of these tariffs."

 

Karen Betts, head of the Scotch Whisky Association, called the suspension
"fabulous news".

 

"The tariff on single malt Scotch whisky exports to the US has been doing
real damage to Scotch whisky in the 16 months it has been in place, with
exports to the US falling by 35%," she said.

 

"So today, everyone in our industry - from small companies to large - is
breathing a sigh of relief."

 

For more than a decade, the EU and US accused each other of propping up
their home aviation markets with tax breaks, research grants and other aid.

 

But tensions flared in 2019, when former US president Donald Trump
retaliated by putting tariffs on $7.5bn (£5.4bn) of EU goods, including UK
products such as whisky.

 

Last November, the EU hit back by targeting $4bn of American goods with
duties as punishment for US subsidies for Boeing.

 

Since it left the EU, the UK has been lobbying Washington to drop the duties
on its goods as it seeks a wide-ranging trade deal with the US. Talks with
Washington abruptly broke off in January but resumed after Joe Biden became
US president.

 

Mr Biden's top trade nominee, Katherine Tai, has said she will make it a
priority to resolve the row with the EU and Britain - although for now US
tariffs continue to apply to EU goods.

 

In a joint statement on Thursday, the UK and the US said that the suspension
would "ease the burden on industry and take a bold, joint step towards
resolving the longest-running disputes at the World Trade Organization".

 

The two countries added that it would also allow time to focus on
negotiating "a balanced settlement to the disputes, and begin seriously
addressing the challenges posed by new entrants to the civil aviation market
from non-market economies, such as China".

 

Airbus welcomed the removal of "lose-lose tariffs" and urged the UK and US
governments to reach a long-term settlement.

 

More than £500m-worth of whisky sales have been lost since October 2019,
when the 25% tariff was introduced on single malt Scotch. Smaller distillers
were hit hardest.

 

The US is the biggest single-nation export market by value. President
Trump's US Trade Representative reckoned it was a good source of political
leverage in the 17-year trade dispute over aircraft manufacturing.

 

Scottish cashmere sweaters were also targeted. In the political calculation
of trade disputes, the US did not include Irish whiskey or Italian cashmere,
giving them the opportunity to exploit the rift and grow market share.

 

It was not until last autumn that the European Union and the UK won the
right, at the World Trade Organisation, to hit back over Boeing subsidies by
US governments. That levelled the field on which to negotiate a resolution.

 

Donald Trump used trade tariffs as a bludgeon intended to protect American
jobs, and although Joe Biden is not noted as an enthusiast for globalisation
and free trade, this suspension of tariffs signals his administration is in
the business of negotiated deals between partners.

 

It acknowledges the trans-Atlantic partners should perhaps focus more on
manufacturing competition from China. But there is work to be done: the EU,
UK and US have not only the Boeing/Airbus dispute to resolve, but another
one over steel and aluminium, which explains the 25% tariff currently on
imported American whiskey.

 

For Liz Truss and the UK government's attempts to secure post-Brexit trade
deals, this is a significant step forward. It seems the Biden administration
is not prioritising the European Union ahead of Britain. However, a UK-US
free trade deal is a long way from here.—BBC

 

 

Tesla partners with nickel mine amid shortage fears

Tesla has decided to become a technical partner in a nickel mine - which is
needed for lithium-ion batteries that power electric cars.

 

Elon Musk's car firm will also buy nickel from the Goro mine on the tiny
Pacific island of New Caledonia to secure its long-term supply.

 

The move comes amid growing concerns about future supplies of nickel.

 

New Caledonia is the world's fourth largest nickel producer, which has seen
a 26% rally in prices in the past year.

 

"Nickel is our biggest concern for scaling lithium-ion cell production,"
Musk said on Twitter last month.

 

New Caledonia is a French overseas territory although it has seen growing
calls for its independence.

 

What is the Goro mine?

New Caledonia's huge nickel reserves are crucial for the local economy, and
the Goro mine, in the south of the island, has the potential to be one of
the world's biggest nickel producers.

 

In December, its owners Brazilian mining giant Vale and the French state,
tried to sell it to Swiss commodities trader Trafigura.

 

Residents were so angry about the loss of local ownership and control that
it sparked the collapse of New Caledonia's government and led to workers
going on strike.

 

A new agreement hammered out on Thursday by pro-independence groups,
loyalist parties and indigenous Kanaks will see the mine sold to a
consortium that now includes employees as well as three regional provinces.
Trafigura will hold just 19%.

 

Tesla will be involved in a "technical and industrial partnership" to help
with product and sustainability standards along with taking nickel for its
battery production, according to the agreement.

 

It will play the role of technical consultant in the design and improvement
of the manufacturing process.

 

Vale said the deal would "enable the operations to continue with a
sustainable path for the future, preserving jobs and delivering economic
value to the country".

 

Greater control

While Tesla will not have an equity stake, its partnership in the mine gives
it greater control over its electric battery supply chain as it ramps up
production.

 

Nickel is mined mostly in Russia, Canada, New Caledonia and Indonesia and
primarily used to make stainless steel. But the growth in electric vehicles
has added a new source of demand for the metal.

 

The extraction of nickel, particularly the use of coal-fired power, comes at
an environmental and health cost and mines have been criticised repeatedly
by campaigners

 

Thursday's agreement called for reinforced environmental standards and set a
target for the mining complex to be carbon neutral by 2040.—BBC

 

 

Budget 2021: Four things that critics say were missing

Chancellors like to claim their Budgets include something for everyone, and
Rishi Sunak's tax and spend statement on Wednesday certainly cast the net
wide. There were short-term policies to tackle the impact of Covid-19 and
long-term plans for righting the nation's finances.

 

But some people still feel there were gaps, areas where he could have done
more: for those struggling to make ends meet, for example, and on action to
fast-track the switch to a low carbon economy.

 

Here are four areas where critics and commentators were surprised by what
was left out of the chancellor's economic recovery Budget.

 

The BBC has put their points to the Treasury for a response.

 

Rishi Sunak wasn't silent on the environment in the Budget.

 

He handed the Bank of England a duty to support the move to zero emissions.
He set up a new infrastructure bank, to invest mainly in green projects, and
a new green savings scheme.

 

But does that amount to the revolution many people hoped would be
kick-started in the Budget? Hardly, say critics.

 

Mr Sunak held off a fuel duty rise for the 11th year in a row. And he is
accused of clawing back money from a key home insulation scheme that
supporters say was an easy win for the environment.

 

The £1.5bn Green Homes Grant (GHG), launched last year, offered money for
people to insulate their homes and install low carbon heating such as heat
pumps.

 

The deadline to apply is the end of this month and people must have their
improvements completed by March 2022.

 

But many householders couldn't contact installers, and some installers
didn't get paid because the system was so creaky. Only 6% of the cash has
been spent, so environmentalists want the money to be rolled over.

 

But Sunak didn't mention it in the Budget so that won't happen and the
scheme will be withdrawn as planned at the end of March.

 

Fatima Ibrahim, from the group Green New Deal UK, said: "Our response to the
climate crisis should have been front and centre of the Budget, not a
footnote."

 

Covid's legacy

Man receives vaccine in south London, February 2021

Money has been showered on government departments to deal with pandemic
costs: £150bn this year and the same again next.

 

But there was no planning for Covid costs beyond April 2022, said Richard
Hughes, chairman of the Office for Budget Responsibility, which provides
independent financial forecasts to the Treasury. He called it a "source of
risk" for the public finances.

 

The government's own roadmap out of lockdown has talked of the possible need
for an annual vaccination programme and continuing test and trace capacity.

 

Add to this the backlog of hospital appointments, additional help needed for
school children, and reduced revenues for public transport, and many
economists calculate that Covid costs will continue well beyond the next two
years.

 

Mr Hughes said: "We don't know what the government's plans are for dealing
with these legacy costs beyond this year.

 

In fact rather than finding more money to cover these extra demands, the
government is planning to cut spending.

 

"Faced with these looming pressures, the chancellor's response so far has
been to cut around £15bn a year from total departmental spending in the
years beyond 2021-22, including a further £4bn cut in this Budget," said Mr
Hughes.

 

Another respected economist, Paul Johnson, director at the Institute of
Fiscal Studies, agreed that the Budget left a big question mark over Covid
costs. He tweeted: "Spending plans from 2022 include precisely nothing for
dealing with additional pressures arising from the pandemic, of which there
are plenty. In fact they involve spending cuts relative to pre-pandemic
plans. Is that really credible?"

 

There was no support for struggling renters in the Budget, pointed out
social research group the Joseph Rowntree Foundation.

 

"The chancellor was silent on support for the 700,000 households already in
rent arrears," it said.

 

The Local Housing Allowance which is used to work out housing benefit will
be frozen from April too, piling further pressure onto renters, the
Foundation added.

 

On the other hand, for those buying a home, the chancellor extended the
stamp duty holiday for another three months and launched a new 95% mortgage
guarantee scheme.

 

"These policies will compound the UK's housing crisis, driving up house
prices and making it harder to address the issues faced by people in
poverty," the JRF said.

 

Higher house prices can have a knock-on effect, pushing up rents, and
squeezing the finances of renters who are often struggling already.

 

Jon Sparkes, chief executive of homeless charity Crisis, said: "It is very
disappointing to see the housing support announced is limited to home
buyers. Hundreds of thousands of renters in arrears are facing eviction in a
matter of weeks and must not be forgotten."

 

Extending the £20 boost to universal credit and the furlough scheme until
September will help tenants plan ahead, "but much more is required to avoid
a mounting crisis in the private rented sector," said Timothy Douglas,
policy & campaigns manager for letting agents' organisation Propertymark.

 

"As the impact of Covid continues to bite and unemployment rates rise, we
are increasingly concerned about how tenants will avoid future rent
arrears," he added.

 

After the pandemic took the lives of more than 40,000 mostly elderly care
residents there were widespread calls for reform of the social care sector.

 

But the chancellor failed to offer even a whisper of fresh support for care
homes or their staff.

 

"The sector was already on its knees before the pandemic hit, and now it is
at crisis point," said Helen Wildbore, director of the Relatives & Residents
Association.

 

"Following a year of unremitting challenges, with care services stretched to
breaking point and staff burnt out, support from the chancellor was
desperately and urgently needed."

 

She said the Association's helpline hears daily from people who are relying
on these services who already feel neglected and left behind by the
government.

 

"The Budget is an insult to older people needing care, and their families,"
she added.

 

The day after the Budget, parliament's Housing, Communities and Local
Government Committee launched an enquiry into the impact of COVID-19 on
adult social care, conceding that the problems in the sector aren't simply a
consequence of the pandemic.

 

"We have seen year-on-year the demand on services increasing, while local
authority budgets have been stretched more and more," said committee chair
Clive Betts MP.

 

"Unless the funding of social care is resolved there will continue to be
more cuts to other council services."

 

But many wish reforms to social care and how it is funded had been tackled
much earlier.

 

"The silence on social care funding proposals in the Budget was deeply
disappointing," said Steven Cameron, director at pension firm Aegon.

 

"The devastating impact the pandemic has had on our most elderly has shown
just how valuable but stretched our care system is, making it even more
urgent that the government delivers on previously promised reforms to social
care funding." --BBC

 

 

 

Deliveroo unveils plans for '$7bn' London listing

Deliveroo is to list its shares in London in a move that could reportedly
value it at about $7bn (£5bn).

 

The food delivery firm has seen demand soar in the pandemic, as restaurants
forced to close to dine-in customers have signed up to its platform.

 

Deliveroo, which operators in 12 markets, said it was committed to making
the UK its "long-term home".

 

It comes after the government proposed new stock market rules that would
benefit start-up technology firms.

 

These would create two different classes of shares with differential voting
rights, giving founders more say in key decisions.

 

The rules - designed to make London a more attractive place to list - would
mirror those of the US, but some fear it could create a riskier trading
environment.

 

London takes aim at Amsterdam with market shake-up

Will Shu, who founded Deliveroo in London eight years ago, said the city was
"a great place to live, work, do business and eat".

 

"That's why I'm so proud and excited about a potential listing here."

 

He added that the firm, which has been criticised over its treatment of
workers in the past, wanted to give consumers choice, restaurants "new
opportunities", and provide riders with "great work".

 

The plan comes after a flurry of technology firms have listed their shares
in 2021, including gift card retailer Moonpig.

 

Commenting on Deliveroo's announcement, Chancellor Rishi Sunak said: "The UK
is one of the best places in the world to start, grow and list a business -
and we're determined to build on this reputation now we've left the EU.

 

"That's why we are looking at reforms to encourage even more high growth,
dynamic businesses to list in the UK."—BBC

 

 

 

Reddit chief: I was late to spot GameStop stock mania

Reddit boss Steve Huffman has told BBC News he supported the aims of
controversial sub-Reddit WallStreetBets.

 

A long-time fan of the group, he said he had been slow in spotting its
effect on GameStop's huge share-price spike in January.

 

"I was actually a little late to the party, because I didn't realise that
Reddit had leaked into the real world again", he said.

 

GameStop's share price ended up reaching nearly $500 (£350) before falling.

 

WallStreetBets had been hyping up the computer-game retailer's shares.

 

The idea was if enough Reddit users bought GameStop shares, they could drive
up the price, hurting hedge funds who had bet against the company.

 

Some claimed the group had collectively manipulated the market.

 

But Reddit decided to leave it up.

 

"We were... trying to keep WallStreetBets online," Mr Huffman said.

 

When the media talks about the big social-media platforms - Facebook,
Twitter, Instagram - Reddit is often ignored.

 

But as hedge funds learned during the GameStop share-price spike - ignore it
at your peril.

 

Reddit likes to think of itself as different.

 

At its heart, it certainly feels more alternative.

 

Its system of upvoting content mean ideas either fly or die.

 

It's not called the front page of the internet for nothing.

 

Mr Huffman has also had to deal with another big story this year -
conspiracy theories peddled by Donald Trump about electoral fraud.

 

"What do you do when the president doesn't live up to the ideals, like the
principles of our country?" Mr Huffman said.

 

An influential sub-Reddit called TheDonald was instrumental in hyping up Mr
Trump across the internet.

 

Reddit banned it last year.

 

Mr Huffman told BBC News it was the most difficult moderation decision he
had had to make.

 

Huffman is one of handful of men in Silicon Valley - along with Twitter's
Jack Dorsey and Facebook's Mark Zuckerberg - that make huge decisions on
what we can and can't see on the internet.

 

The following interview has been edited for brevity and clarity.

 

When did you first come across WallStreetBets?

 

So I've known about WallStreetBets for years.

 

WallStreetBets is, in fact, one of my guilty pleasures on Reddit.

 

How much was the group about having a laugh?

 

A lot of it, as I think it's the cornerstone to a lot of friendship and
human experience.

 

At the end of the day, this community is fun and it's funny.

 

And obviously, there's some cohesion there, talking about the trades.

 

When did you start realising WallStreetBets was having an impact on
GameStop's share price?

 

So I think I was actually a little late to this, because I've been on
WallStreetBets for a while.

 

And they've been talking about GameStop for a while.

 

And so on WallStreetBets, there's often a couple of stocks or companies or
positions that have their attention.

 

And so over the years, it's been Tesla.

 

It's been Virgin Galactic.

 

It's been Blackberry.

 

It's been different things.

 

And so, in my mind, I'm just browsing Reddit and OK, yeah, GameStop's got
their infatuation right now.

 

So I was actually a little late to the party, because I didn't realise that
Reddit had leaked into the real world again.

 

And so it was, I think, really at the the take off of the mania when I was
like: "OK, this is a bigger one."

 

Then there was that crazy period where the GameStop share price went from
$20 to $400. What was going through your mind at that point?

 

You know, I love reading business stories.

 

I love reading books about investors and their successes and failures.

 

So it's just a topic I'm interested in.

 

I just thought it was a fascinating story.

 

And it's such a smart thing to do.

 

And I, personally, have found it a fair thing to do.

 

So you were always supportive, like ideologically, of what the group was
doing?

 

Yes, because I think if you've got one transaction where one group has taken
an extreme position and then another group can see that opportunity that
maybe they've overextended themselves.

 

Obviously, there's a lot of risk there.

 

But I think everybody goes in that situation aware of that risk.

 

The shares at one point got almost up to $500 a share. At that point, was
there any pressure on you to maybe lock down WallStreetBets?

 

We faced that question, like that literal question: "Should you do
something?"

 

But our motivation, or what we were trying to do in that situation, was
actually the opposite - to keep WallStreetBets online.

 

So you decided: "This needs to stay up"?

 

The question of should it go down or not was a very fast conversation.

 

And we were, you know, confident that that community was well moderated and
well within our content policy.

 

Are you proud of what WallStreetBets managed to achieve?

 

I am always, I think, proud when people do amazing things.

 

And so I think maybe pride isn't even the right word.

 

I think I'm happy or encouraged when humans come together to do something
incredible.

 

Do you think that it was a David-and-Goliath story?

 

Oh, absolutely, because, you know, institutional investors have so much.

 

There's so many more resources in terms of knowledge, relationships, the
ability to execute large trades.

 

No individual could have done this.

 

Although hedge funds wage war on each other all the time, we never see it.

 

And so to see a group of individuals kind of band together against some
really well resourced institutions, I think that's an intriguing story from
any angle.

 

Some people lost a lot of money. Do you feel any responsibility?

 

I think any trade, not just risky ones like WallStreetBets, has risk.

 

But it also has opportunity.

 

I think there are two things that are really important.

 

One is that individuals have that opportunity.

 

I don't think we as a society should be so paternal to say that, well: "This
group is smart enough to make these decisions - but this group, you know, we
should keep them out," because you're not just protecting them from risk,
you're eliminating their participation in the gains.

 

Did the Capitol Hill riots make you reappraise the inherent goodness of the
free internet?

 

I'd be lying if I say that thought hadn't crossed my mind.

 

But we've seen, I think, on Reddit, the power of people to do, I think, the
right thing generally.

 

One of the ways we look at Reddit, one of our duties, is to make sure the
volume of any particular viewpoint is in proportion to the number of people
who actually have it.

 

And so that is to say we don't want a small number of loud people to have
control beyond their numbers.

 

And I think on Reddit we've gotten pretty good at that.

 

I suppose you're wrestling with two things here. You don't want to get
involved in censoring or overly censoring people?

 

We feel, I think, there's an enormous responsibility for getting that
balance right.

 

And, you know, we are learning,

 

I think, along with everybody else, we do our very best because it's not
just the right thing to do for our business - it's the right thing to do for
our users.

 

And I think it's the right thing to do generally.

 

And, for example, the QAnon conspiracy theory, we saw that on Reddit and
banned it three years ago, long before it metastasized online and in the
real world.

 

Do you think you should have done more on TheDonald? That's one of the
criticisms of Reddit that comes up a few times.

 

Look, TheDonald was a series of hard decisions.

 

And there's never a hard decision that I don't, upon reflection, wish we had
made faster.

 

But I think there's a matter of reality here - the principle of free speech
was designed specifically to protect political speech.

 

And so we went through a crisis not just at Reddit but in the United States
and, I think, around the world of what do you do when the president doesn't
live up to the ideals, like the principles of our country.

 

That's a real conflict.

 

And so I think there's no way around that conflict.

 

Is that the most difficult decision that you've had to make?

 

I think it might be, yes, because the other ones were more matters of
getting the words right.

 

Other policy changes we've made over the years around, you know, violence or
harassment or bullying or involuntary sexualisation, we always knew what our
gut told us - what the right thing was.

 

And so those were sometimes complicated because we had to figure out how to
get there and how to kind of balance all of our values.

 

But we always knew where we wanted to go.

 

I think with political speech, and in this particular moment, it was
particularly challenging given the context of, like, the United States and
the president of the United States being almost in conflict with each other.

 

Fake news, conspiracy theories, how do you stay on top of it?

 

Misinformation is another word for propaganda.

 

And propaganda is as old as politics.

 

This is not a new problem.

 

And so, we've faced this problem in different forms over pretty much our
entire existence.

 

And so the solution, that we've seen, ultimately lies within people.

 

It lies within a free press.

 

It lies within access to information.

 

It lies within people being allowed to have good judgements and societal
pressure to to be truthful, to behave well, all of these things.

 

Finally, there are some pretty niche sub-Reddits. What are the oddest ones
you've come across?

 

Oh, my goodness.

 

BreadStapledToTrees is probably the weirdest one that I'm comfortable saying
in an interview.

 

And it's as the name implies.

 

It's literally pictures of bread stapled to trees.

 

There's another, I think, favourite around the office, CatStandingUp, which
is just pictures of cats standing up.

 

But that one is very strictly moderated.

 

So every comment within every post in that community has to be the single
word "Cat".--BBC

 

 

 

Apple investigated in UK over 'unfair' App Store claims

The UK's Competition and Markets Authority has launched an investigation
into whether Apple's terms for app developers are anti-competitive.

 

It follows a series of complaints, including a high-profile one from Epic
Games, the developer of Fortnite.

 

Some developers are unhappy that they are forced to distribute apps to
iPhones and iPads via the App Store, and the commission Apple takes.

 

Apple said its terms were "fair and equal".

 

The investigation will consider whether Apple has a dominant position in the
distribution of apps on its devices and look at whether it imposes unfair
terms on developers.

 

Andrea Coscelli, chief executive of the CMA said: "Millions of us use apps
every day to check the weather, play a game or order a takeaway. So
complaints that Apple is using its market position to set terms which are
unfair or may restrict competition and choice - potentially causing
customers to lose out when buying and using apps - warrant careful
scrutiny."

 

In response, Apple said: "We believe in thriving and competitive markets
where any great idea can flourish. The App Store has been an engine of
success for app developers, in part because of the rigorous standards we
have in place - applied fairly and equally to all developers - to protect
customers from malware and to prevent rampant data collection without their
consent.

 

"We look forward to working with the UK Competition and Markets Authority to
explain how our guidelines for privacy, security and content have made the
App Store a trusted marketplace for both consumers and developers."

 

Epic Games has launched a legal action against Apple and Google in the US,
after both removed Fortnite from their smartphone app stores.

 

The row centred on the up to 30% cut both the tech giants take when people
buy an app, subscription or in-app item on the Apple App Store or the Google
Play store, as well as the difficulty in launching a mobile app without
submitting to both companies' app store rules.

 

In August Epic bypassed the Apple and Google stores to let Fortnite players
buy virtual currency at a lower price, directly from it, resulting in an
immediate ban from both stores.

 

The row has attracted the attention of both regulators and politicians.

 

Arizona's state House of Representatives passed a law this week which
prohibits Apple and Google, and any other app store exceeding one million
downloads, from demanding developers based in the state exclusively use its
app stores.

 

The law also covers users living in the state, but it is not yet clear how
it will affect companies headquartered in other states but conducting sales
in Arizona. It will now be handed to the state Senate for approval.

 

In Europe, Apple is facing two investigations into whether it has broken
competition rules, one of which relates to its app store policies.—BBC

 

 

 

Surging bond yields push Asian shares to one-month lows

NEW YORK/SYDNEY (Reuters) - Asian stocks skidded to one-month lows on Friday
as rising U.S. Treasury yields again rattled equity investors while hoisting
the dollar to a three-month high, which in turn dragged the Japanese yen.

 

Energy markets were not spared the volatility either, with oil prices adding
to big gains overnight after the Organization of Petroleum Exporting
Countries (OPEC) and its allies agreed to mostly maintain their supply cuts
in April as they await a more solid recovery in demand from the coronavirus
pandemic. [O/R]

 

Australian stocks shed more than 1%, Japan’s Nikkei share average dropped
1.6% and shares in Seoul fell 1.4%. Chinese shares were in the red with the
bluechip CSI300 index off 1.5%.

 

That sent MSCI’s broadest index of Asia-Pacific shares outside of Japan to
684.52, the lowest since Feb. 1.

 

E-Mini S&P futures were 0.5% lower.

 

U.S. stocks dropped on Thursday after Federal Reserve Chair Jerome Powell
disappointed some investors by not indicating that the Fed might step up
purchases of long-term bonds to hold down longer-term interest rates.

 

The tech-heavy Nasdaq Composite tumbled 2.1%, taking it down about 10% from
its record close on Feb. 12 and putting it in correction territory. [.N]

 

Even though Powell made it clear that the Fed was not close to changing its
ultra-loose monetary policy stance anytime soon, some analysts still worried
rising Treasury yields could herald higher borrowing costs, thereby limiting
the fragile U.S. economic recovery.

 

“The market was seemingly looking for Powell to push back harder on the
recent increase in yields,” said Ray Attrill, head of forex strategy at
National Australia Bank.

 

“Volatility seen in local interest rate markets yesterday with another large
increase in long-term rates and government bond yields has set the scene for
a choppy market again today if overnight developments are any guide.”

 

Bond investors with a bearish view of Treasuries took heart in Powell’s
remarks and sold the notes. The yield on 10-year Treasuries climbed above
1.5% to as high as 1.5727%, but still below a one-year high of 1.614% struck
last week. [US/]

 

The yield curve, a measure of economic expectations, steepened on rising
yields, with the gap between two- and 10-year yields widening by another 6.3
basis points overnight.

 

Rising Treasury yields bolstered demand for the dollar. The dollar index
jumped to a three month high of 91.734. [USD/]

 

A stronger dollar hobbled the yen. By early Friday, the yen fell to as low
as 107.97, the lowest since July 1 though it pared those losses and was last
at 107.85.

 

The euro was also tripped by a firmer dollar, with the common currency
sluggish at $1.1960.

 

Climbing yields and dollar strength pummeled gold prices, which sank to a
nine-month low as investors sold the precious metal to reduce the
opportunity cost of holding the non-yielding asset. [GOL/]

 

Spot gold slid another 0.2% early Friday to $1,692.26 per ounce, trading
below $1,700 for the first time since June 2020.

 

Oil prices extended gains on early Friday after zooming higher overnight.

 

U.S. crude futures climbed 17 cents, or 0.3%, to $64, holding below a
13-month high hit on Thursday. Brent crude rose 10 cents to $66.84 a barrel.

 

In the cryptocurrency market, bitcoin was down 4% at $46,422 Friday.

 

 

 

White House says closely tracking Microsoft's emergency patch

WASHINGTON (Reuters) - The White House is closely tracking an emergency
patch Microsoft Corp has released, U.S. national security adviser Jake
Sullivan said on Thursday, after an unknown hacking group recently broke
into organizations using a flaw in the company’s mail server software.

 

“We are closely tracking Microsoft’s emergency patch for previously unknown
vulnerabilities in Exchange Server software and reports of potential
compromises of U.S. think tanks and defense industrial base entities,” Jake
Sullivan, President Joe Biden’s national security adviser, said on Twitter.

 

"We encourage network owners to patch ASAP," he said. His tweet included a
link to a notice by Microsoft of the security update. (bit.ly/3kLPWJQ)

 

Microsoft’s near-ubiquitous suite of products has been under scrutiny since
the hack of SolarWinds Corp, a Texas-based software firm that served as a
springboard for several intrusions across government and the private sector.

 

In other cases, hackers took advantage of the way customers had set up their
Microsoft services to compromise their targets or dive further into affected
networks.

 

Hackers who went after SolarWinds also breached Microsoft itself, accessing
and downloading source code - including elements of Exchange, the company’s
email and calendaring product.

 

 

 

China says to promote U.S. business ties on basis of 'mutual respect'

BEIJING (Reuters) - Chinese Premier Li Keqiang pledged on Friday to promote
business ties with the United States based on “mutual respect” that benefit
both countries.

 

The world’s two largest economies have been at odds over trade and economic
policy, especially when it comes to U.S. efforts to restrict tech exports to
China and tariffs both have put on each others goods.

 

This week, President Joe Biden singled out a “growing rivalry with China” as
a key challenge facing the United States, with his top diplomat describing
the Asian country as “the biggest geopolitical test” of this century.

 

In his annual work report at the opening of the annual meeting of China’s
parliament, Li said his country wanted to work with the United States.

 

“We will promote the growth of mutually beneficial China-U.S. business
relations on the basis of equality and mutual respect,” he said, without
giving details.

 

The United States has also repeatedly complained about market access
problems in China for its companies.

 

Biden’s U.S. trade representative nominee, Katherine Tai, said on Monday she
would work to fight a range of “unfair” Chinese trade and economic practices
and would seek to treat Chinese censorship as a trade barrier.

 

 

 

Oil prices surge as OPEC+ extends output cuts into April

SINGAPORE (Reuters) - Oil prices rose on Friday, extending gains from the
previous session, after OPEC and its allies agreed not to increase supply in
April as they await a more substantial recovery in demand amid the
coronavirus pandemic.

 

Brent crude futures for May rose 60 cents, or 0.9%, to $67.34 a barrel at
0337 GMT, and was on track for a near 2% gain in the week.

 

U.S. West Texas Intermediate (WTI) crude futures were up 56 cents, or 0.9%,
to $64.39 per barrel.

 

Both contracts surged more than 4% on Thursday after the Organization of the
Petroleum Exporting Countries and allies, together called OPEC+, extended
oil output curbs into April, with small exemptions to Russia and Kazakhstan.

 

“It just goes to show how much of a surprise the OPEC+ discipline is,” said
Michael McCarthy, chief market strategist at CMC Markets.

 

“What makes the gain even more impressive is that it comes against a
risk-off backdrop and a higher U.S. dollar,” he said.

 

Oil prices usually fall when the dollar rises as a higher greenback makes
oil more expensive for buyers with other currencies.

 

Investors were surprised that Saudi Arabia had decided to maintain its
voluntary cut of 1 million barrels per day through April even after oil
prices rallied over the past two months.

 

“An array of factors coalesced to bring the parties together, but the
resultant price increase will almost certainly push the parties to change
their minds when they meet again on April 1, 2021,” commodity analysts at
Citigroup said in a note.

 

“Whatever its rationale, from a pure market balancing perspective, OPEC
itself has indicated that more than 2 million barrels per day (bpd) of oil
will be required in the market by end-June. That need starts by mid- to late
Apr’21, as refinery demand for crude starts growing before escalating
through Aug’21.”

 

Analysts are reviewing their price forecasts to reflect the continued supply
restraint by OPEC+ as well as U.S. shale producers, who are holding back
spending in order to boost returns to investors.

 

“Oil prices could rip higher now that a tight market is likely up through
the summer. WTI crude at $75 no longer seems outlandish and Brent could
easily top $80 by the summer,” OANDA analyst Edward Moya said in a note.

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

Dairibord

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


(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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