Major International Business Headlines Brief::: 18 March 2021

[Bulls n Bears]

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Major International Business Headlines Brief::: 18 March 2021

 


 

 


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ü  Chinese billionaire abruptly quits firm he founded

ü  Disney parks to re-open – but no screaming please

ü  Covid: EU plans rollout of travel certificate before summer

ü  US economy to grow faster than forecast, says Federal Reserve

ü  Donald Trump's wealth down $700m after presidency

ü  Stocks rise after Fed tames inflation fears, projects U.S. GDP surge

ü  Fed's Powell: U.S.-driven global recovery could help lift laggards like
Europe

ü  Several U.S. states sue Biden administration for revoking permit for
Keystone XL pipeline

ü  Toshiba shareholders in landmark win for Japan corporate governance with
vote for probe

ü  BlackRock ups focus on 'natural capital' ahead of AGM season

ü  Coinbase valuation pegged at $68 billion ahead of landmark U.S. listing

ü  Oil falls a fifth day lower after U.S. stockpile build

ü  Britain sets sights on 'Big Four' auditors in market shake-up

ü  Nigeria: Malabu Oil Scandal - Italian Court Acquits Shell, Eni Managers

ü  Nigeria: Govt Approves $1.5 Billion for Repair of Port Harcourt Refinery

ü  Kenya: Broke Kenya Power Needs Bailout to Stay Afloat, Audit Reveals

 


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Chinese billionaire abruptly quits firm he founded

The founder of high-flying Chinese e-commerce group Pinduoduo has stepped
down unexpectedly as chairman.

 

Colin Huang is China's seventh richest person and is worth more than $50bn
from his stake in the online firm.

 

Mr Huang's exit comes as Pinduoduo overtook rival tech giants JD.com and
Alibaba with 788m annual active buyers on its platform last year.

 

But his company has been criticised for its work culture following the death
of two employees recently.

 

 

Mr Huang will explore "new, long-term opportunities", the company said in a
statement on Wednesday.

 

Shares in Pinduoduo, valued at close to $200bn (£143bn), fell by nearly 8%
following the news, wiping about $4bn from Mr Huang's wealth.

 

The former Google employee was briefly ranked the second-richest person in
China last year, following a surge in sales at his e-commerce business.

 

Pinduoduo's 788m active buyers in 2020 overtook Jack Ma's Alibaba's 779m
annual shopper count for the first time.

 

Its novel features include team buying, where customers come together to
purchase more units at a lower price. They can also play games on the site
and are sometimes rewarded with gifts.

 

'Journey of exploration'

In a letter to shareholders, Mr Huang said: "As the founder of this company,
I am probably the most suitable person to take on this task by stepping out
of the business and the comfort zone to embark on a journey of exploration."

 

Pinduoduo has appointed Chen Lei as the company's new chairman. Mr Chen was
a classmate of Mr Huang's at the University of Wisconsin-Madison and was
appointed chief executive in July 2020.

 

The e-commerce firm's rapid growth has been powered by cheap deals but it
continues to post losses.

 

Pinduoduo has repeatedly sought more funding, raising roughly $9bn from
investors since its Wall Street stock market launch in 2018.

 

The online grocery market has become highly competitive in China as more
shoppers buy daily meal ingredients from their phones following the
pandemic.

 

But there has been widespread online criticism of the intense work culture
across China's booming tech industry.

 

In December, the death of a Pinduoduo employee who collapsed after leaving
work sparked heavy criticism of its work culture.

 

Many tech workers follow a "996" schedule, based on working daily from 9am
to 9 pm, six days a week.--BBC

 

 

 

Disney parks to re-open – but no screaming please

Disney has announced plans to re-open its two theme parks in California next
month - but new rules mean visitors will still feel the impact of pandemic.

 

The firm will limit attendance, require masks for those aged two and above,
and have temperature screenings at some locations.

 

And an industry trade group has advised against potentially risky activities
- like screaming on rides.

 

The California parks have been shut for more than a year.

 

State officials lifted restrictions earlier this month, citing falling
coronavirus cases, although they kept in place some limits, including
capping attendance at 15% capacity and barring out-of-state visitors.

 

The California Attractions and Parks Association, which has pushed for parks
to be able to re-open, said members would be able to meet standards for
health and safety, including guidance against activities like shouting and
singing, by modifying seating on rides, encouraging masks and other
measures.

 

Hit to business

Disney has already opened properties in other locations, such as Florida and
Beijing, at reduced capacity. Its parks in Paris and Hong Kong Kong have
reopened, only to be shut again.

 

But in California, its parks remained shut - in part due to disagreements
with unions over safety measures for staff, a dispute the two sides resolved
last fall.

 

The closures, which led to thousands of job cuts, have hit the firm hard. In
the last three months of 2020, park revenue was roughly half that of 2019.

 

But Disney has said it is encouraged by signs of underlying demand and
managed to be profitable, even with limited capacity, at the open parks.

 

Prior to the pandemic, Disney's parks, cruise lines and other experiences
unit accounted for more than 35% of annual revenues at the company, which
also includes movie, television and online streaming businesses.

 

Disney said the re-opening in California will mean the return of roughly
10,000 jobs.

 

"While it may be a bit different from the last time you visited, together we
can find new ways to create magical moments together—and memories to
treasure forever," the company told potential visitors on its website.--BBC

 

 

 

 

Covid: EU plans rollout of travel certificate before summer

A digital certificate to kick-start foreign travel should be given to
citizens across the EU "without discrimination", officials say.

 

The aim is to enable anyone vaccinated against Covid-19, or who has tested
negative or recently recovered from the virus to travel within the EU.

 

The 27 member states will decide how to use the new digital certificate.

 

Vaccine passports have faced opposition from some EU member states over
concerns they might be discriminatory.

 

Some argue that they would enable a minority to enjoy foreign travel without
restrictions while others, such as young people who are not seen as a
priority for inoculation, continue to face measures such as quarantine.
European Commission officials have made clear they want to avoid
discrimination.

 

Another issue raised has been that data on the efficacy of vaccines in
preventing a person from carrying or passing on the virus is incomplete.

 

Ahead of the EU's announcement, the World Health Organization (WHO) said
that it was working to "create an international trusted framework" for safe
travel, but that vaccinations should not be a condition.

 

Separately, European Commission President Ursula von der Leyen has
threatened to withhold exporting vaccines to the UK and any other countries
outside the EU that do not supply doses in a reciprocal way.

 

"We're still waiting for doses to come from the UK," she said. "So, this is
an invitation to show us that there are also doses from the UK coming to the
European Union."

 

What does the certificate mean for EU travel?

Speaking in Brussels on Wednesday, European Justice Commissioner Didier
Reynders said the proposed digital green certificate would be "for all EU
citizens, their families when they're leaving the EU or living abroad".

 

"It'll also be for the European Economic Area (EEA), because we want to work
with Norway and Iceland," he said, adding that Switzerland would also be
involved.

 

Mr Reynders said there was still a lot to do to put the digital certificate
in place, but the aim was to get it up and running before the summer tourist
season.

 

The European Commission proposal sets out that any EU member state
permitting vaccinated travellers to bypass restrictions such as quarantine
must accept certificates from other states within the bloc under the same
conditions.

 

The vaccines should be approved by the European Medicines Agency (EMA).
These currently include drugs developed by Pfizer-BioNTech, Moderna,
Oxford-AstraZeneca and Johnson & Johnson, but not Russia's Sputnik V or
China's Sinovac and Sinopharm vaccines.

 

However, the proposal adds that the guidelines "should not prevent member
states from deciding to accept vaccination certificates issued for other
Covid-19 vaccines".

 

Meanwhile, in the UK, Business Secretary Kwasi Kwarteng said the government
was looking at the idea of vaccine passports and had been "discussing what
the best way to proceed is".

 

"We are having debates, discussions about travel... but I think what we also
have to do is be driven by the data, we've got to see how coronavirus
develops," he told the BBC.

 

More than a third of the UK population - nearly 25 million people - have
received at least one dose of coronavirus vaccine in the UK, which is no
longer a member of the European Union.

 

The rollout across the EU has been slower, and has been hindered by delayed
deliveries as well as the current suspension in several countries of the use
of the Oxford-AstraZeneca Covid-19 vaccine over fears of possible side
effects.

 

What do European countries make of the plan?

The economies of countries such as Greece, Spain and Italy are unlikely to
recover until the tourist industry is reopened, and they have been looking
at ways to save the summer season while providing a safe environment for
both travellers and local residents.

 

Greek Prime Minister Kyriakos Mitsotakis on Wednesday welcomed the planned
certificate, which he said would "significantly facilitate the movement of
citizens and will help boost tourism and the economies that rely heavily on
it".

 

Last month, Greece's Deputy Prime Minister Akis Skertsos said that a common
digital certificate was "not discriminatory", and that non-vaccinated
tourists could also visit Greece this summer - but the procedure for them
would be slower as they would have to be tested and might have to
self-isolate on arrival.

 

A hotel manager in the Spanish resort of Benidorm, Ricardo Sánchez, told the
BBC that the UK was its most important market, followed by Belgium, the
Netherlands, and people arriving from Eastern Europe.

 

"So many months working with so many restrictions and the restrictions are
changing every 15 days," he said, adding that would-be tourists were unsure
what to do and were waiting for "good news" before booking reservations.

 

Iceland has said it is opening its borders to visitors who have received the
vaccine without the need for testing or quarantine later this week.--BBC

 

 

 

 

US economy to grow faster than forecast, says Federal Reserve

The US central bank expects much stronger growth this year than previously
forecast, as vaccination rates rise and government relief funds start
flowing into the economy.

 

The Federal Reserve forecast average growth of 6.5% this year - up from 4.2%
it predicted in December.

 

The outlook for recovery in the jobs markets has also brightened, the Fed
said.

 

Despite the upgrade, officials did not move to raise interest rates.

 

And most members expect to keep borrowing costs near zero until after 2023,
according to the projections released by the Fed after its regular meeting.

 

Federal Reserve Chair Jerome Powell said the bank wanted to see proof of a
more complete recovery before altering its policies, which are focused on
stimulating economic activity.

 

Inflation

Millions of people remain out of work and the parts of the economy most
affected by the pandemic - such as leisure and hospitality - remain weak, he
said. The damage has disproportionately affected minority and low-wage
workers, who are often the last to benefit from an economic rebound, he
added.

 

"The recovery has progressed more quickly than generally expected," he said
at a press conference after the meeting. "While we welcome these positive
developments, no one should be complacent."

 

The improved outlook - a compilation of independent forecasts by the bank's
board members - includes projections that inflation could heat up later this
year, reaching 2.4%, above the bank's historic 2% target. But Mr Powell said
such a move was likely to be "transient".

 

Share prices on Wall Street jumped after the announcement.

 

"With the Fed keen not to tighten policy until it sees inflation on track to
moderately exceed its 2% goal on a sustained basis, and also emphasising
that any increase in inflation should be transitory, we expect the Fed will
follow through on its commitment not to raise rates for a while yet," said
Michael Pearce, senior US economist at Capital Economics.

 

"The key risk is that the rise in inflation that most forecasters anticipate
this year proves more enduring than Fed officials currently expect."

 

The economic recovery anticipated in the US is more robust than that in
Europe.

 

But Mr Powell said he was not worried that weak growth abroad would hurt the
US, the main focus of the bank. "When the US economy is strong, that
strength tends to support global activity as well," he said.

 

"I'd love to see Europe growing faster, I'd love to see vaccination rollout
going more smoothly but I don't worry too much about us in the near term,"
he said. "I think we're in a good place. It's all ahead of us but the data
should get stronger fairly quickly and remain strong for some time."--BBC

 

 

 

 

Donald Trump's wealth down $700m after presidency

Donald Trump's net worth has dropped by about $700m to $2.3bn (£1.65bn)
during his time as president, according to the Bloomberg Billionaires Index.

 

The Covid-19 pandemic hit his fortunes hard, with Mr Trump's office
buildings, branded hotels and resorts losing revenue and falling in value.

 

His fleet of planes and golf courses have also seen drops in their value.

 

Mr Trump is currently under a criminal investigation into his financial
affairs and his family business.

 

Bloomberg analysed financial documents and other filings from May 2016 and
January 2021 to calculate Mr Trump's wealth before and after he became US
president.

 

Mr Trump's commercial real estate accounts for about three-quarters of his
net worth. The office towers he owns or co-owns have seen big drops in
valuations as more people work from home, a trend that could last in the
long term.

 

Bloomberg estimates a 26% drop in the value of his main commercial property
holdings.

 

He also owns, manages or licenses his name to about a dozen hotels and
resorts, plus 19 golf courses.

 

Although golf has become popular during the pandemic as a socially distanced
outdoor sport, Mr Trump's two courses in Scotland have consistently lost
money, filings show.

 

After the Capitol Hill siege in January, the Professional Golfers'
Association (PGA) of America ended an agreement to host its 2022
championship tournament at Mr Trump's New Jersey golf course, saying it
would hurt the group's brand.

 

Deutsche Bank, the only bank willing to lend to him after his bankruptcies
in the 1990s, also said after the riots that it would not do business with
him again.

 

Mr Trump also owns a fleet of planes that includes a Boeing 757. These
planes are decades old and have been marked down in value over the years,
according to financial disclosures seen by Bloomberg.

 

Seven planes were valued at around $59m in 2015 and five were valued at
about $6.5m in 2020. The value of Mr Trump's aircraft has dropped over the
years, in part because he has sold some of his fleet.

 

Criminal investigation

During his presidency, Mr Trump's finances were regularly in the spotlight
and he has been very secretive about how much tax he pays.

 

Last month the Supreme Court ordered Mr Trump to hand over his tax returns
and other financial records to prosecutors in New York.

 

For months they have been trying to obtain eight years' worth of Mr Trump's
personal and corporate tax returns.

 

The investigation was originally started in 2018 to examine the Trump
Organization's role in hush-money payments made during the 2016 presidential
campaign to two women who said they had had affairs with Mr Trump.

 

Book deal?

As a former president, Donald Trump can expect to sign some lucrative media
deals to recover some of his lost wealth, such as a post-presidential
memoir.

 

Barack and Michelle Obama reportedly got paid about $65m for their memoirs,
while Bill Clinton earned a $15m advance for his 2004 book.

 

Bloomberg says the most obvious way Mr Trump can profit post-presidency is
with a news channel or social media platform that would appeal to his 74m
voters in the 2020 election.--BBC

 

 

 

Stocks rise after Fed tames inflation fears, projects U.S. GDP surge

TOKYO/NEW YORK (Reuters) - Asian shares and U.S. stock futures rose on
Thursday after the Federal Reserve committed to maintaining accommodative
monetary policy and projected a rapid jump in U.S. economic growth this year
as the COVID-19 crisis eases.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.99%, while
stocks in China rose 0.46%. Australia’s market bucked the trend and fell
0.3%.

 

E-mini futures for the S&P 500 advanced 0.3%.

 

While inflation is expected to reach 2.4% this year, above the central
bank’s 2% target, Fed Chair Jerome Powell called it a temporary surge that
will not change the Fed’s pledge to keep its benchmark overnight interest
rate near zero.

 

The dollar recouped some losses against the yen but extended declines
against commodity currencies, hurt by the lower-for-longer rates commitment
by the Fed.

 

Long-term Treasury yields remained elevated in Asian trading as bond
investors chose to focus more on rising inflation expectations.

 

“If the Fed isn’t going to induce tightening, it’s very bullish for risky
assets,” said Teresa Kong, head of fixed income and portfolio manager at
Matthews Asia. “We should be seeing a mild rally in Asian assets and
currencies.”

 

Shares in South Korea and Hong Kong also jumped more than 1%, taking their
lead from a strong session on Wall Street.

 

The S&P 500 closed at a record high on Wednesday and the Dow Jones
Industrial Average closed above 33,000 points for the first time, bolstered
by the Fed’s strong economic forecast and Powell’s comments that it is too
early to discuss tapering-off measures.

 

MSCI’s gauge of stocks across the globe gained 0.37% to approach an all-time
high.

 

The Fed projected the U.S. economy will grow by 6.5% this year - the largest
annual output growth since 1984 - thanks in part to massive federal fiscal
stimulus and optimism around the success of coronavirus vaccines.

 

 

“It’s sort of shocking ... that officially the United States government
believes it will grow faster than the Chinese government believes it will
grow this year,” said Christopher Smart, chief global strategist at Barings
Investment Institute in Boston, calling it a “head-turning moment for
investors.” The dollar edged up against the yen and the Swiss franc as
improving risk appetite hurt traditional safe-harbour currencies.

 

The Australian dollar jumped to a two-week high of $0.7835 after data showed
the nation’s economy created more than twice as many jobs as expected in
February.

 

Benchmark 10-year U.S. Treasury yields edged up to 1.6550%, not far from the
highest since January last year.

 

The spread between two-year and 10-year U.S. yields, the most-keenly
monitored part of the yield curve, stood at 152.20 basis points, close to
the steepest since August 2019.

 

The 10-year inflation breakeven rate hit 2.305%, which shows that inflation
expectations are at the highest since January 2014.

 

Oil futures extended declines, weighed down by rising U.S. crude inventories
and by expectations of weaker demand in Europe, where the coronavirus
vaccine roll out is faltering.

 

Brent crude fell 0.46% to $67.69 a barrel, and U.S. crude declined by 0.45%
to $64.31.

 

Spot gold rose 0.5% to $1,752.41 per ounce by 0119 GMT, while U.S. gold
futures climbed 1.3% to $1,748.80 per ounce as the Fed’s pledge to keep
rates low and worries about inflation pushed up the precious metal.

 

 

 

Fed's Powell: U.S.-driven global recovery could help lift laggards like
Europe

(Reuters) - The U.S. economy appears set to leave other developed markets in
the dust this year with the largest annual growth spurt in decades, new
Federal Reserve forecasts indicate, but that divergence is not worrying to
the central bank’s top official.

 

If anything, Fed Chair Jerome Powell sees a greater likelihood the strong
U.S. rebound from the coronavirus pandemic will help jump-start countries
still struggling to find their footing, such as Europe, rather than those
weak showings overseas impeding the domestic recovery.

 

“U.S. demand, very strong U.S. demand, as the economy improves, is going to
support global activity as well, over time,” Powell said on Wednesday in a
news conference following the Fed’s latest two-day policy meeting.

 

“When the U.S. economy is strong that strength tends to support global
activity as well, so that’s one thing.”

 

Powell’s comments came as he was asked about sharply contrasting outlooks
that have emerged in recent weeks, in particular between the United States,
where the vaccine rollout is on pace and federal relief spending approved in
the last few months totals nearly $3 trillion, and Europe, where the
inoculation effort is lagging and relief funds approved months ago remain in
limbo.

 

Fed policymakers on Wednesday were the latest to weigh in, forecasting U.S.
gross domestic product would surge by 6.5% in 2021 - its fastest rate since
the 1980s.

 

That is a 2.3 percentage-point improvement in this year’s outlook from their
previous forecasts in December and would mark a stunning 10-point swing
upward from 2020’s 3.5% decline should the economy live up to the new
expectation.

 

By contrast, Powell’s transatlantic counterpart, European Central Bank
President Christine Lagarde, has said the euro zone economy would likely
contract in the first quarter. ECB staff forecasts peg growth in the bloc at
4% in 2021.

 

“I don’t worry for the near term - I mean, I’d love to see Europe growing
faster, I’d love to see the vaccine rollout going more smoothly - but I
don’t worry too much about us in the near term, because we are on a very
good track, very strong fiscal support coming, now vaccination going
quickly, and cases coming down,” Powell said.

 

“I think we are at a good place.”

 

The divergence is not just with Europe. A Reuters poll last month estimated
Japan, too, would suffer a contraction in the first quarter and that
fiscal-year 2021 growth would come in at just 3.6%.

 

Strong U.S. demand is seen supporting Japan’s export-reliant economy, a
welcome development for the Bank of Japan which is holding a two-day rate
review ending on Friday.

 

Markets are focusing on what steps the BOJ will take to make its policy
sustainable enough to weather a prolonged battle with soft inflation, and
how Governor Haruhiko Kuroda will describe the outlook for a fragile
recovery.

 

“The strength in the U.S. economy clearly stands out. It means Japan’s
economy will enjoy a recovery driven by solid external demand,” said Mari
Iwashita, chief market economist at Japan’s Daiwa Securities.

 

“But external demand alone won’t push up inflation, which will stay weak
unless consumption grows more,” she said.

 

In the past, divergence in growth and monetary policy among major central
banks occasionally caused market turbulence. Not this time with stock prices
continuing their ascent, and bond and currency markets taking the Fed’s
decision with stride.

 

“We are having diverging recoveries here, as we did after the last crisis,”
Powell said. “In this case, as well as the other one, the U.S. recovery is
leading the global recovery.”

 

 

 

 

Several U.S. states sue Biden administration for revoking permit for
Keystone XL pipeline

(Reuters) - Texas and several other U.S. states have sued the administration
of President Joe Biden over his decision to revoke a key permit for the
Keystone XL pipeline, Texas Attorney General Ken Paxton said in a statement
late on Wednesday.

 

The lawsuit states that Biden does not have the unilateral authority to
change energy policy that the U.S. Congress has set, Paxton said
bit.ly/3bUFxc0.

 

Biden revoked a permit for the pipeline which would transport 830,000
barrels a day of carbon-intensive heavy crude from Canada’s Alberta to
Nebraska. It was part of a flurry of executive orders aimed at curbing
climate change.

 

The head of the U.S. Senate energy committee, Joe Manchin, urged Biden last
month to reverse his opposition to the Keystone XL pipeline, saying the
project provides union jobs and is safer than transporting the oil via
trucks and trains.

 

Canada’s TC Energy Corp is the owner of the oil pipeline project.

 

The complaint on Wednesday was filed by Paxton and Montana Attorney General
Austin Knudsen in Texas federal district court.

 

The suit is joined by attorneys general from Alabama, Arkansas, Georgia,
Indiana, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, North Dakota,
Ohio, Oklahoma, South Carolina, South Dakota, Utah, and Wyoming.

 

The White House did not immediately respond to a request for comment late on
Wednesday.

 

"The Executive's unilateral decision to revoke the Keystone XL permit is
contrary to the constitutional structure to which the states agreed at the
time of ratification," the states said in the lawsuit bit.ly/2P4UG1G.

 

“The Executive’s decision also encroaches upon the states’ abilities to
steward and control the lands within their borders.”

 

 

 

Toshiba shareholders in landmark win for Japan corporate governance with
vote for probe

TOKYO (Reuters) - Toshiba Corp shareholders voted on Thursday in favour of
an independent investigation into allegations that investors were pressured
ahead of last year’s annual general meeting - a watershed victory expected
to spur more shareholder activism.

 

The vote marks only the fourth time a shareholder motion has won approval in
Japan and the first at a major company that is a household name, albeit one
sullied by a string of scandals.

 

It is also notable for the gravity of allegations that emerged after the
AGM. Some Toshiba shareholders had felt pressure to vote in line with
management’s wishes on director nominations after contact from a government
adviser or the trade ministry, sources have previously told Reuters.

 

“This result shines a very public spotlight on the likelihood that EGMs,
which in Japan can be called by a shareholder that has owned only 3% for 6
months, will probably be used more by activists,” said Nicholas Benes, a
corporate governance expert and representative director of the Board
Director Training Institute of Japan.

 

The proposal from Effissimo Capital Management, an activist investor and
Toshiba’s biggest shareholder, was backed by proxy advisers and required a
simple majority of votes at Thursday’s extraordinary general meeting to
pass. A breakdown of the vote results was not immediately disclosed.

 

Reuters has reported that the Harvard University endowment fund had been
told by a Japanese government adviser it could be subject to a regulatory
probe if the fund did not follow management’s recommendations at last July’s
AGM.

 

As a result, the fund abstained from voting and later learnt there was no
basis for any probe, sources have said.

 

The trade ministry also contacted several foreign shareholders ahead of the
AGM, people familiar with matter have said.

 

Toshiba conducted its own investigation into complaints about last year’s
AGM and found it was not involved in any effort to pressure the Harvard
fund. That probe was criticised as perfunctory and insufficent by
shareholders and proxy advisers.

 

A second proposal from U.S. hedge fund Farallon Capital Management,
Toshiba’s second largest shareholder, that sought changes to the
conglomerate’s capital policy did not receive sufficient shareholder backing
to pass.

 

 

 

BlackRock ups focus on 'natural capital' ahead of AGM season

LONDON/BOSTON (Reuters) - BlackRock on Thursday warned companies that rely
on nature or have an impact on natural habitats to publish a “no
deforestation” policy and their strategy on biodiversity or face pushback
from the asset manager at their annual meetings.

 

The world’s biggest asset manager is keen to position itself as a leader in
sustainable finance and over the last year has looked to take a tougher
position on companies not performing on environmental, social and governance
related issues.

 

How companies manage ‘natural capital,’ such as water and forests, is seen
as an integral part of their response to climate change and a driver of
value for shareholders.

 

“All companies rely on natural capital in some way and, as the world
transitions to a low-carbon economy, we ask companies to demonstrate how
they are minimizing their negative impacts on, and ideally enhancing the
stock of, the natural capital on which their long-term financial performance
depends,” BlackRock said in a report detailing its engagement priorities for
2021.

 

While BlackRock, which manages around $8.7 trillion in assets, has
previously engaged with companies on the topic, the report lays out its
position in more detail for the first time.

 

Going forward, BlackRock said companies should disclose how their business
practices are consistent with the sustainable use of natural capital, and
address their impact on local communities.

 

Those with a material dependence or impact on natural habitats, should
publish a “no deforestation” policy and strategy on biodiversity.

 

“We may take ... action at companies by voting against the re-election of
responsible board directors when companies have not effectively managed,
overseen or disclosed natural capital-related risks,” it said.

 

“We may also vote for relevant shareholder proposals addressing material
natural capital risks if we believe a company could better manage such risks
or report on its approach.”

 

 

 

Coinbase valuation pegged at $68 billion ahead of landmark U.S. listing

(Reuters) - Coinbase Global Inc, the largest U.S. cryptocurrency exchange,
said on Wednesday recent private market transactions had valued the company
at around $68 billion this year ahead of a planned stock market listing.

 

The eye-popping valuation underscores how the perceived value of Coinbase
has rallied in lock-step with the surge in the price of cryptocurrency
bitcoin.

 

In a regulatory filing, Coinbase said its stock in the private market traded
at a weighted average price of $343.58 in the first quarter of 2021 through
March 15. In the third quarter ended Sept. 30, Coinbase’s stock traded at an
average of $28.83 per share for a valuation of $5.3 billion.

 

That represents a nearly 13-fold jump in its valuation in the space of a few
months. According to data platform PitchBook, Coinbase was valued at a shade
over $8 billion during its last private fundraise in October 2018.

 

Coinbase’s implied valuation eclipses that of New York Stock Exchange parent
Intercontinental Exchange Inc (ICE), Nasdaq Inc and the London Stock
Exchange, and puts it $4 billion short of futures exchange operator CME
Group.

 

Coinbase’s latest valuation is almost 53 times its revenue in 2020. By
comparison, ICE currently trades at a 10.67 price-to-sales ratio, according
to Refinitiv data.

 

The latest filing from Coinbase also signals heightened confidence that the
listing will be approved by regulators.

 

A successful listing by Coinbase, whose business is primarily focused on
digital currencies, would represent a landmark victory for cryptocurrency
advocates vying for endorsement for a sector that has struggled to win the
trust of mainstream investors, regulators and the general public.

 

It could also be seen as a tacit regulatory approval of assets traded on
Coinbase’s platform. The company has more than 43 million users in more than
100 countries.

 

Coinbase did not indicate in the latest filing if it had received approval
from regulators that would allow it to trade cryptocurrencies that have been
classified as securities in the United States.

 

CRYPTO HIGHS

San Francisco-based Coinbase’s potential listing also comes as the value of
bitcoin continues to surge; it hit a record high of $61,781.83 on Saturday.
The price of the digital currency has fallen since then as investors
consolidated gains and on news of plans by India to ban cryptocurrencies.

 

A regulatory filing last month, which provided the first detailed look at
Coinbase’s finances since it was founded in 2012, showed it swung to a
profit last year as bitcoin surged.

 

Coinbase, among the most well-known cryptocurrency platforms globally, has
registered about 114.9 million shares for its listing, according to its
filing.

 

The low and high sale price per share in the private market was $200.00 and
$375.01, respectively, in the quarter through March 15.

 

In December, Coinbase confidentially submitted paperwork with the U.S.
regulator to go public through a direct listing. This means it is not
selling any shares ahead of its market debut.

 

 

 

Oil falls a fifth day lower after U.S. stockpile build

TOKYO (Reuters) - Oil prices dropped for a fifth day on Thursday after
official data showed a sustained rise in U.S. crude and fuel inventories,
while the ever-present pandemic clouded the demand outlook.

 

Brent crude was down 12 cents, or 0.2%, at $67.88 a barrel by 0119 GMT after
dropping by 0.6% on Wednesday. U.S. oil was also down 12 cents, or 0.2%, at
$64.48 a barrel, having fallen 0.3% the previous session.

 

Government data on Wednesday showed U.S. crude inventories have risen for
four straight weeks after refineries in the south were forced to shut due to
severe cold weather. An industry report estimating a 1 million barrel-drop
had raised hopes the run of gains might have stopped.

 

“Even with the continued recovery in refinery activity, U.S. crude stocks
rose last week,” Capital Economics said in a client note.

 

“We suspect that stocks will fall soon as refinery activity rises further
and crude production holds steady,” Capital said, noting that refineries are
“rapidly coming back online.”

 

U.S. crude inventories increased by 2.4 million barrels last week, an
industry report on Tuesday estimated a 1 million barrel-decline. Analysts
had on average expected an increase of 3 million barrels. [EIA/S]

 

Stocks of gasoline and diesel increased against expectations among analysts
for a decline.

 

On the demand front, a number of European countries have halted use of
AstraZeneca’s COVID-19 vaccine because of concerns about possible side
effects.

 

Germany is also seeing a rise in coronavirus cases, while Italy plans a
national lockdown for Easter lockdown and France will introduce tougher
restrictions.

 

 

 

 

Britain sets sights on 'Big Four' auditors in market shake-up

LONDON (Reuters) - Britain proposed weakening the market grip of “Big Four”
auditors on Thursday and making company directors responsible for spotting
fraud after the collapses of retailer BHS and builder Carillion.

 

Directors would have to repay their bonuses if the company went bust or
serious failings come to light.

 

The long-awaited proposals, put out to a four-month public consultation,
implement the bulk of recommendations made in three government-backed
reports on audit market competition, regulation and corporate governance.

 

“It’s clear from large-scale collapses like Thomas Cook, Carillion and BHS
that Britain’s audit regime needs to be modernised with a package of
sensible, proportionate reforms,” Britain’s business minister Kwasi Kwarteng
said in a statement.

 

Some of the proposals are already being introduced in voluntary form, such
as operational separation of audit and the more lucrative consultancy work
at PwC, Deloitte, KPMG and EY, who known collectively as the “Big Four” and
dominate auditing of blue chips.

 

The Financial Reporting Council, criticised by lawmakers for being too timid
in regulating auditors, is already undergoing an internal transformation to
become the more powerful Audit, Reporting and Governance Authority or ARGA,
proposed on Thursday.

 

The government proposed that a smaller audit firms undertake a meaningful
portion of a big company audit, stopping short of the joint audit initially
recommended by the UK Competition and Markets Authority. This would help
“challengers” build up expertise to fully take on the Big Four later on.

 

If this competition strategy fails, the Big Four face caps on market share,
the government said.

 

New reporting obligations would be introduced on both auditors and directors
around detecting and preventing fraud. Company boards would required to set
out what controls they have in place in a British version of the stringent
U.S. Sarbanes-Oxley anti-fraud safeguards introduced after energy giant
Enron collapsed.

 

Accounting experts say such increased responsibilities would mean
individuals taking on fewer directorships. After the consultation ends, the
government said it would propose legislation when “parliamentary time
allows”.

 

 

 

Nigeria: Malabu Oil Scandal - Italian Court Acquits Shell, Eni Managers

Lagos — An Italian court has declared Shell, Eni and their managers all
acquitted in the controversial Malabu scandal.

 

The Malabu scandal involved the transfer of about $1.1 billion by Shell and
ENI through the Nigerian government to accounts controlled by a former
Nigerian petroleum minister, Dan Etete.

 

>From accounts controlled by Mr Etete, about half the money ($520 million)
went to accounts of companies controlled by Aliyu Abubakar, popularly known
in Nigeria as the owner of AA oil.

 

Anti-corruption investigators and activists suspect he fronted for top
officials of the Goodluck Jonathan administration as well as officials of
Shell and ENI.

 

The transaction was authorised in 2011 by Mr Jonathan through some of his
cabinet ministers and the money was payment for OPL 245, one of Nigeria's
richest oil blocks.

 

Although Shell and ENI initially claimed they did not know the money would
end up with Mr Etete and his cronies, evidence later showed that the claim
was false.

 

Shell, Eni, Mr Etete, Mr Aliyu and several officials of the oil firms are
being prosecuted in Italy for their roles in the scandal.-Leadership.

 

 

 

Nigeria: Govt Approves $1.5 Billion for Repair of Port Harcourt Refinery

Although Nigeria has four refineries, all government-owned, it currently
imports virtually all its refined petroleum products.

 

The Federal Executive Council (FEC) has approved $1.5 billion (about N600
billion) for the rehabilitation of the Port Harcourt refinery.

 

The FEC approved the amount at its virtual meeting held Wednesday and
presided by President Muhammadu Buhari.

 

The approval comes amidst a controversial price increase in the pump price
of petrol that was later reversed.

 

Although Nigeria has four refineries, all government-owned, it currently
imports virtually all its refined petroleum products.

The Minister of State for Petroleum, Timipre Sylva, who briefed reporters
after the FEC meeting said the rehabilitation will be done in three phases
of 18, 24 and 44 months.

 

He said the contract was awarded to an Italian company, Tecnimont SPA, who,
according to the minister, are experts in refinery maintenance.

 

Mr Sylva said the funding of the repairs will be from many components
including the Nigerian National Petroleum Corporation (NNPC), Internally
Generated Revenue (IGR), budgetary provisions and Afreximbank.

 

"The Ministry of Petroleum Resources presented a memo on the rehabilitation
of Port Harcourt refinery for the sum of 1.5 billion, and that memo was $1.5
billion and it was approved by council today.

 

"So we are happy to announce that the rehabilitation of productivity
refinery will commence in three phases. The first phase is to be completed
in 18 months, which will take the refinery to a production of 90 percent of
its nameplate capacity.

 

"The second phase is to be completed in 24 months and all the final stage
will be completed in 44 months and consultations are approved.

 

"And I believe that this is good news for Nigeria."

 

The approval of the $1.5 billion to rehabilitate the refineries is expected
to be greeted with mixed feelings as the country has in the past spent
billions of dollars on refinery maintenance. Despite such expenditure,
however, the refineries have not worked with many experts calling for their
privatisation.-Premium Times.

 

 

 

Kenya: Broke Kenya Power Needs Bailout to Stay Afloat, Audit Reveals

The country's sole power distribution company is technically insolvent and
requires a government bailout to stay afloat, according to the latest audit
report.

 

The report by Auditor-General Nancy Gathungu for the year ending June 30,
2020, shows that Kenya Power recorded a loss before tax of Sh7.04 billion.

 

The situation is made worse by the fact that its liabilities of Sh117.5
billion far outweigh its current assets of Sh42.63 billion by Sh74.85
billion.

 

"The company has reported negative working capital position for the fourth
consecutive year," reads the report that is before the National Assembly.

 

Although strategic initiatives have been undertaken to improve the financial
situation, Ms Gathungu says they appear not to have yielded the intended
results as of June 30, 2020.

"This may cast significant doubt on the company's ability to continue as a
going concern," the report adds. The report further notes that the Power
Purchase Agreements (PAA) with power producers, which account for 54 percent
of the total cost of sales, are significant to the financial woes
bedevilling the company.

 

This is considering their fixed nature that may have adversely affected the
company's performance resulting in the huge losses.

 

The company's financial statements reflect the cost of sales of Sh87.5
billion with Sh47.5 billion in power purchase costs, which relates to
capacity charge as per the PAAs. The report, however, indicates that there
are plans to renegotiate downwards the capacity charges on the existing
PAAs.

 

"The management indicated that plans are underway to align the commercial
operation dates of the PAAs in line with the company's medium to long term
power demand such that there is no excess power generation."

 

Until these strategies are implemented, the company will continue bearing
the high fixed capacity charges.

 

The company buys power from Independent Power Producers (IPP) at over Sh23
per Kilowatt hour when it can easily get cheaper power from Kenya
Electricity Generating Company (KenGen) at less than Sh0.50 per Kilowatt
hour.

 

The report also reveals that Sh16.6 billion due from the government relating
to management of rural electrification schemes on behalf of the government
that has been accumulating over the years is also contributing to the poor
financial performance of the company.-Nation. 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

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Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


Old Mutual

analysts briefing

 

24/03/21 | 2:30pm

 


Willdale

AGM

Boardroom, Willdale Administration Block, Teneriffe, 19.5km peg Lomagundi
Road, Mt Hampden

25/03/21 | 11am

 


TSL

AGM

Virtual | https://eagm.creg.co.zw/eagmzim/ Login.aspx | in the Auditorium,
Ground Floor, 28 Simon Mazorodze Road, Southerton

25/03/21 | 12pm

 


CFI

AGM

Farm & City Boardroom, 1st Floor Farm & City Complex, 1 Wynne Street

31/03/21 | 11am

 


 

Good Friday

 

02/04/21

 


 

Easter Sunday

 

04/04/21

 


 

Easter Monday

 

05/04/21

 


 

Independence Day

 

18/04/21

 


 

Public Holiday in lieu of Independence Day falling on a Sunday

 

19/04/21

 


 

 

 

 

 


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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