Major International Business Headlines Brief::: 01 May 2021

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Major International Business Headlines Brief::: 01 May 2021

 


 

 


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ü  Eurozone suffers double-dip recession as pandemic impact continues

ü  Apple charged over 'anti-competitive' app policies

ü  Barclays boss predicts biggest economic boom since 1948

ü  EasyJet and Virgin Atlantic call for re-opening of skies

ü  Covid: Teletext Holidays faces court over unpaid refunds

ü  Banks fail in bid to share cost of refunding scam victims

ü  Wall St Week Ahead Blow-out U.S. earnings suggest market has room to run

ü  Exxon tops earnings estimates as oil prices, chemicals drive rebound

ü  Stimulus checks boost U.S. consumer spending; inflation warming up

ü  Analysis: Investors straining to look beyond India's COVID-19 crisis

ü  EU hits Apple with music streaming charge in boost for Spotify

ü  Bitcoin rises 6.54% to $57,098.08

ü  Berkshire annual meeting to showcase Munger as he rejoins Buffett

ü  Apple and Alphabet pull Wall Street lower

ü  Nigeria: NNPC Confirms Memo On Zero Oil Revenue, Blames 'Unscrupulous
Persons' for Leak

ü  Nigeria: First Bank Reacts to CBN's Sacking of Its Board

ü  Tanzania: Mining Sector Targets Increased Revenue Collection

 

 

 

 

 

 

 

 


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Eurozone suffers double-dip recession as pandemic impact continues

The eurozone's economy has fallen back into recession as the impact of the
pandemic continues to hit activity.

 

Europe's economies have been set back by a renewed surge in infections this
year and Covid-related restrictions.

 

The eurozone shrank by 0.6% in the January-to-March period - the second
consecutive contraction, which is a widely-used definition of a recession.

 

It is the second such episode, a so-called double-dip recession, since the
onset of the pandemic.

 

However, among the national economies that have reported data so far, that
pattern was repeated only by Italy.

 

Other countries reported some growth in one or other of the last two
quarters.

 

The French economy did grow in the first three months of this year, by 0.4%,
after a decline at the end of 2020, although the rebound was described by
the national statistical agency as "limited".

 

In Germany it was the other way around, with some growth in the fourth
quarter of last year and a sharp decline - of 1.7% - revealed by the latest
figures.

 

US economy accelerates as recovery continues

There were some specific factors that may have affected Germany.

 

Claus Vistesen of Pantheon Macroeconomics says the economy was stung by a
value added tax (VAT) hike which led to a fall in spending and construction.

 

A temporary VAT cut in Germany - intended to support the economy during the
pandemic - came to an end at the turn of the year.

 

Andrew Kenningham of Capital Economics also pointed to supply disruptions
hitting Germany's large manufacturing sector, especially the motor industry.

 

The bigger picture is a region where economic activity has been set back
once again by the spread of the virus and restrictions imposed to curb it.

 

The figures are particularly bleak in the case of Italy, where the economy
is still 6.6% smaller than at the end of 2019, before the pandemic.

 

That said, the economic damage in this phase of the health crisis is less
severe. Economic activity in the eurozone in the most recent period was 11%
higher than at the nadir in the second quarter of last year.

 

That supports the idea that businesses have found ways to reduce the impact
that restrictions have on what they do, although for some the effect is
still severe.

 

Looking ahead, this weak performance is expected to improve as vaccination
programmes allow further easing of restrictions and support consumer
confidence. That will be especially important in southern Europe where many
businesses need to see a recovery in tourism.-BBC

 

 

 

Apple charged over 'anti-competitive' app policies

Apple has been charged with breaking EU competition rules over the way it
runs its App Store.

 

European Commission anti-trust regulator Margrethe Vestager tweeted that
"consumers are losing out".

 

It relates to charges brought two years ago by music streaming app Spotify
which claimed that Apple was stifling innovation in that industry.

 

Apple faces a large fine and may be forced to change its policies if its
arguments do not convince regulators.

 

Previously it has denied any wrong-doing.

 

The case is looking specifically at how its App Store policies affect music
streaming. The charge was initially filed in 2019 by co-founder of Spotify
Daniel Ek, who said that Apple was "limiting choice and stifling
innovation".

 

"Apple's rules distort competition in the market for music streaming by
raising the costs of competing music streaming app developers. This in turn
leads to higher prices for consumers for their in-app music subscriptions on
iOS devices," an EC statement said.

 

In response, Apple said it did not receive any commission on 99% of
Spotify's subscribers.

 

"At the core of this case is Spotify's demand they should be able to
advertise alternative deals on their iOS app, a practice that no store in
the world allows," it said in a statement.

 

"Once again, they want all the benefits of the App Store but don't think
they should have to pay anything for that. The Commission's argument on
Spotify's behalf is the opposite of fair competition."

 

Alexander Holland, chief content and strategy officer at music streaming
platform Deezer said he was pleased with the Commission's findings.

 

"It's an important step towards a fair competitive landscape where dominant
market players like Apple have to compete with independent companies like
Deezer on quality of service, innovation and consumer experience, rather
than artificially created barriers and a lack of a level playing field."

 

Earlier Ms Vestager tweeted that the preliminary conclusion of the EC was
that "Apple was in breach of EU competition law" and "charges high
commission fees on rivals in the App Store and forbids them to inform of
alternatives".

 

EC and US regulators have a series of ongoing investigations into Apple's
App Store including more widely considering whether the 30% commission it
charges for in-app purchases is fair.

 

Developers have become increasingly frustrated by the so-called Apple tax.

 

Under pressure from both developers and regulators, Apple has cut its
commission rate to 15% for any developer than earns less than £1m in annual
revenue.

 

A complaint was filed to the EC by e-commerce firm Rakuten in March 2020,
alleging that it was anti-competitive to take a commission on e-books sold
through the App Store while promoting its own Apple Books service. This case
will be looked at separately.

 

Epic v Apple

Epic Games, the makers of Fortnite, also filed a similar complaint as part
of an ongoing dispute with Apple over its 30% cut on in-app purchases.

 

It led to Apple removing the game from its App Store.

 

A court case between the two opens in the US next week and promises to
reveal much about Apple's inner workings. It will see testimony from Apple
chief executive Tim Cook and Epic chief Tim Sweeney.--BBC

 

 

 

Barclays boss predicts biggest economic boom since 1948

The UK is about to experience its biggest economic boom since the aftermath
of World War Two, according to Barclays boss Jes Staley.

 

His upbeat assessment came as Barclays revealed its profits for the first
three months of this year had more than doubled from a year earlier to
£2.4bn.

 

"We estimate the UK economy will grow at its fastest rate since 1948. That's
pretty spectacular," he said.

 

The vaccine programme and built-up savings will help to drive the rebound.

 

Mr Staley said that a combination of the successful vaccine rollout and
Barclays' estimate of an extra £200bn sitting in customer and company bank
accounts meant the UK would join the US in seeing some of the fastest
economic growth in decades.

 

The boost in Barclays' latest profits was almost entirely driven by a more
confident view on how many of its loans would be repaid.

 

This time last year, the bank set aside more than £2bn to cover the risks
that borrowers would be unable to repay all of their debts. This time round
they are setting aside just £55m.

 

Interestingly, Barclays - unlike other big banks in the UK and US - have
decided not to adjust previous estimates of bad loan previsions, but hinted
that they will do so in future.

 

It will be equally interesting to watch just how much of their total £9bn
kitty for future estimated debt defaults they are prepared to reconsider.

 

Assuming the worst regarding future defaults is sometimes called "stuffing
the cookie jar" - a jar that can be raided when needed to boost future
earnings. All banks do this to a greater or lesser degree,

 

But Mr Staley seems convinced that despite virus-related disasters in
developing economies such as India and new lockdowns in developed counties
such as Japan, the overall picture looks to be improving.

 

He also concedes that many business sectors (like hospitality and leisure)
have faced desperately challenging circumstances and it is unclear how many
of the five million workers still on furlough can expect to return to
full-time work.

 

There are many business owners who will not recognise the rosy picture he
paints of the UK's economic future.

 

It is probably wrong to talk in terms of an economic boom after we have seen
the biggest economic downturn in 300 years, but Mr Staley is in tune with
his US counterparts when he hopes and expects that, for him and his many
business customers, the worst is behind us.-BBC

 

 

 

EasyJet and Virgin Atlantic call for re-opening of skies

Most of Europe should be cleared for take-off under the government's planned
easing of air travel restrictions, says EasyJet boss Johan Lundgren.

 

His call not to delay the resumption of mass travel was echoed by Virgin
Atlantic boss Shai Weiss.

 

He said there is now no reason for the government not to allow the return of
US services next month.

 

Under the UK's roadmap out of lockdown, a list of permitted destinations is
expected to be published soon.

 

Mr Lundgren told the BBC the "clock is ticking" and airlines need clarity.

 

And in a speech on Friday he cited research that suggests mass travel to
many popular holiday destinations would have limited Covid risks.

 

Mr Lundgren revealed a study commissioned from epidemiologists at Yale
University's school of public health that indicated that unrestricted travel
to some of the most popular holiday destinations would increase hospital
admissions by 4%.

 

He said the research suggested that much of Europe, including Spain,
Portugal and Greece, should be categorised as "green" under a traffic light
system being proposed by the government to show which countries can be
visited.

 

"EasyJet believes that a green country should be one where unrestricted
travel does not pose a risk to the NHS or the success of the vaccination
programme," Mr Lundgren said.

 

"On this basis EasyJet believes that much of Europe should be classed as
green on the government's framework.

 

"This is because vaccination is a game changer - the success of the UK
vaccine roll out has broken the link between cases and hospitalisation and
by May and June we expect the situation to progressively improve because
vaccination rates."

 

It is expected the government will use a traffic light system to rank
countries with high vaccination rates and other data, showing which are
suitable for travel.

 

Mr Lundgren said the government "urgently needs" to publish this, and that
most of Europe should be given a "green" light.

 

"As the rest of the economy emerges from this lockdown with some precautions
in place, there is no reason why the same is not possible for travel."

 

Also on Friday, Mr Weiss called for the US to be put on the green list.
"With world leading vaccination programmes in both the UK and US, and
evidence to support safe reopening through testing, there is a clear
opportunity to open up travel and no reason to delay beyond May 17," the
Virgin Atlantic chief executive said.

 

That date is when the government says air travel restrictions could start to
be relaxed, although ministers have said there is no guarantee of sticking
to that timetable.

 

Like much of the aviation sector, both airlines have cut thousands of jobs
and faced a huge hit to profits as global air travel was grounded.

 

Mr Weiss made his US comments as he unveiled the airline made a £659m loss
in 2020, with passenger numbers falling 80%.

 

Transport Secretary Grant Shapps is due to chair a meeting of G7 transport
ministers next week to discuss vaccine passports before announcing which
countries will be open to Britons.

 

Earlier this week, British Airways' chief executive Sean Doyle said he was
confident about the aviation industry's recovery, pointing to comments from
European Commission President Ursula von der Leyen that vaccinated US
tourists would be welcome in Europe this summer.

 

"Opening up an air corridor is something that can be easily achieved if we
have the will on both sides of the pond," he said in an interview with
Aviation Straight Talk.-BBC

 

 

 

Covid: Teletext Holidays faces court over unpaid refunds

Teletext Holidays faces legal action unless it pays back £7m to customers
whose holidays were cancelled owing to the pandemic, a watchdog has said.

 

Complaints suggested people were not receiving refunds they were owed within
14 days, as required by law, for package holidays that were cancelled.

 

The Competition and Markets Authority said the delay was "unacceptable".

 

Teletext Holidays had said it was "extremely disappointed" with the CMA's
actions.

 

Complaints

Some people who complained about the online holiday firm reported they were
promised refunds for package holidays by a certain date, only to have the
date pushed back.

 

CMA chief executive Andrea Coscelli said: "There must be no more delays to
Teletext refunding customers for holidays they could not take because of the
pandemic.

 

"It is unacceptable that many have already waited months for the refunds
they are legally entitled to. We take very seriously the ongoing failure of
Teletext Holidays to meet its obligations.

 

"The firm must now comply with the law and commit to refunding its
customers. If it does not do so, we will not hesitate to pursue this case in
court."

 

Teletext Holidays is the trading name of Truly Travel, a subsidiary of Truly
Holdings.

 

In a statement, the company said: "Teletext Holidays have consistently
stated our commitment to refund all customers as quickly and practically as
possible.

 

"We have been in continuous dialogue with the CMA providing evidence of why
the refund process has been delayed.

 

"We have also provided real time plans on how and when we can refund all
customers. Therefore, we are extremely disappointed with today's CMA
announcement that seemingly ignores the reality of the challenges we face
through no fault of our own."

 

Empty beach

If your travel company cancels a package holiday for any reason, it has to
give you a full refund by law within 14 days.

 

Similarly, if you booked a flight (which was departing or arriving in an EU
country or the UK or on an EU or UK airline) through a holiday company and
the flight was cancelled, you must be reimbursed.

 

But many people were been left waiting months for a payout during the
pandemic as travel firms faced a cashflow crisis.

 

Since the start of the pandemic, the CMA has written to more than 100
package holiday firms to remind them of their obligations to comply with
consumer protection law.

 

It has arranged refund commitments from a number of holiday firms, including
Love Holidays, Lastminute.com, Virgin Holidays, TUI UK, Sykes Cottages and
Vacation Rentals.

 

LoveHolidays agreed to refund more than £18m to 44,000 customers who had
holidays cancelled over coronavirus. Meanwhile, Lastminute.com agreed to pay
£7m in refunds to more than 9,000 customers by the end of January.-BBC

 

 

 

Banks fail in bid to share cost of refunding scam victims

Negotiations between banks to create a permanent, central pot of money to
refund scam victims have collapsed.

 

Seven banks and building societies had signed up to an interim, shared
arrangement, but will now pay for refunds individually.

 

The pot was being used to fund repayments when neither the bank nor customer
were to blame for fraudsters stealing money.

 

An ongoing code means victims should not lose out on refunds.

 

Fraud epidemic 'is now national security threat'

In so-called authorised push payment scams, victims are often duped into
transferring money to a fraudster in the belief they are a legitimate trader
or service.

 

Thousands of people become victims each year, and millions of pounds are
stolen.

 

A code agreed between banks, affecting customers of 19 financial brands, was
signed in 2019 to ensure the victims of these scams are refunded if they
have done nothing wrong.

 

Research has suggested a varying degree of success between different banks
in compensating victims.

 

Central fund

Alongside the code, a plan was drawn up for banks to contribute to a central
pot of money. After refunding a victim, the banks could then claim that
money from the central pot.

 

Only seven banks signed up. They were Barclays, HSBC, Lloyds Banking Group,
Metro Bank, Nationwide Building Society, NatWest and Santander.

 

Others - with low fraud levels- deemed it unfair, while TSB decided it would
refund victims independently, in all cases.

 

The signatories, and the banking trade body UK Finance, had hoped others
would contribute to a permanent pot, including organisations - such as
mobile phone providers - which fraudsters may have taken advantage of to
trick victims.

 

Plans for a permanent central pot of money have now been dropped after
months of talks, and various extensions to the interim arrangements.

 

Katy Worobec, managing director of economic crime at UK Finance, said: "The
interim funding pot was originally set up because we had asked that
government and regulators work with industry to find a long-term solution to
funding of 'no blame' cases, involving other sectors like online platforms,
which are used by criminals to perpetrate the fraud, contributing to
reimbursing the customer. Sadly, that is yet to happen."

 

Vim Maru, from one of the original signatories, Lloyds Banking Group, said:
"There will be no change for our customers. When the central funding
arrangement was first put in place, it was expected that those organisations
in the wider ecosystem would also contribute.

 

"As this has not happened, the arrangement is no longer needed. Protecting
our customers from fraud remains our priority and we are committed to
reimbursing victims of scams in line with the voluntary code."-BBC

 

 

 

UK housing market 'on the boil' as prices rise

UK house prices rose by 7.1% compared with a year ago, the Nationwide has
said, prompting one analyst to suggest the market is "on the boil".

 

The building society said the average property price had risen by £15,916 in
the last year, to reach £238,831.

 

The Nationwide said increased savings during lockdown meant some first-time
buyers would be better placed to afford a home.

 

But prices could continue to rise as homes available did not match demand.

 

Lucy Pendleton, from independent estate agents James Pendleton, said: "This
market is on the boil.

 

"Silly season might be just around the corner. That's when a seller's market
becomes entrenched against a backdrop of very high demand and you start to
see open houses for properties that are nothing special and a return of
gazumping."

 

The Nationwide said that prices rose sharply in April, up by 2.1% compared
with March.

 

Year-on-year price growth accelerated as well, driven in part by the
extension in stamp duty holidays in England, Wales and Northern Ireland.

 

house prices

The pandemic has led some people to reassess their domestic set-up, with
demand for more space coming to the fore.

 

"Our research suggests that while the stamp duty holiday is impacting the
timing of housing transactions, for most people it is not the key motivating
factor prompting them to move in the first place," said Nationwide's chief
economist, Robert Gardner.

 

The state of the market saw some people queuing overnight outside an estate
agent in Wales as homes for a new development went onto the market.

 

Nationwide's figures are based on its own mortgage data, and it suggests
that the market is likely to continue to be busy for the next six months,
owing to the stamp duty relief.

 

Price growth was also likely to accelerate, it said, with demand expected to
exceed the supply of homes on the market.

 

Savings boost

That is generally bad news for first-time buyers, but the building society
said some - with the help of their families - would be in a better position
having had the opportunity to save money during the pandemic.

 

A typical first-time buyer would need to save £19,500, or around 50% of
their gross earnings, for a 10% deposit on a mortgage, Mr Gardner said.

 

"The fact that around a third of first time buyers in England in 2018-19
said that friends or family helped them to raise a deposit through a loan or
gift suggests that the recent surge in savings will help some, but that the
impact won't be spread evenly," he said.

 

On the same day, Barclays boss Jes Staley said that built-up savings would
help to create the biggest economic boom since the aftermath of World War
Two in the UK.

 

The Nationwide said that the longer-term outlook for the housing market was
more "uncertain".

 

"If unemployment rises sharply towards the end of the year as most analysts
expect, there is scope for activity to slow, perhaps sharply," Mr Gardner
said.

 

Nicky Stevenson, managing director at estate agent Fine & Country, said:
"Numbers like this won't last forever but the market may not begin to unwind
until the busy summer season is out of the way."-BBC

 

 

 

Wall St Week Ahead Blow-out U.S. earnings suggest market has room to run

U.S. companies are leaping above expectations on first-quarter earnings,
giving investors stronger confirmation that profit growth will be able to
support the market this year.

 

A big piece of that growth is coming once again from technology and growth
companies, which suggests greater durability in companies that
underperformed more economically focused value names for months.

 

Earnings are rebounding from last year's pandemic-fueled lows. With results
in from more than half of the S&P 500 companies, earnings are now expected
to have risen 46% in the first quarter from the previous year, compared with
forecasts of 24% growth at the start of the month, according to IBES data
from Refinitiv.

 

About 87% of reports have come in ahead of analysts' estimates for earnings
per share, putting the quarter on track to have the highest beat rate on
record going back to 1994, when Refinitiv began tracking the data.

 

Some strategists say the stronger-than-expected earnings could drive a
richly valued market higher still. The benchmark S&P 500 (.SPX) is trading
at about 23 times forward earnings, above the long-average of about 15,
based on Refinitiv's data.

 

"The earnings results are really not being fully priced in yet, and that's
because you're seeing estimates for the back half of the year start to pick
up now in response to this better-than expected environment. That says to us
there's still more room," said Eric Freedman, chief investment officer at
U.S. Bank Wealth Management.

 

The high percentage of beats also follows many quarters where companies were
holding off on giving guidance on the future, making it harder for analysts
to estimate results for this year.

 

Citing stronger earnings, Jonathan Golub, chief U.S. equity strategist and
head of quantitative research at Credit Suisse Securities, on Friday raised
his 2021 S&P 500 price target to 4,600 from 4,300. The S&P 500 index (.SPX)
was last at about 4,180.

 

Stocks have had little reaction to results overall so far. The S&P 500 is up
more than 11% since Dec. 31. The index is up less than 2% since mid-April
when the earnings period kicked in to high gear, but remains near record
highs.

 

Earnings also are raising some fresh questions in the debate over growth
versus value. After a decade of steadily under-performing the overall
market, value has been a favorite among some investors as a bet on the
reopening of the economy.

 

However, "tech is showing an ability ... to still create as good, if not
superior, sales growth to cyclicals. That's what I find amazing," said David
Bianco, Americas chief investment officer for DWS.

 

"Tech is as much as of a reopening play as everybody else," he said.

 

Investors will be watching reports in the weeks ahead to see if the trend
continues. Results are expected next week from a wide range of companies
including Activision Blizzard (ATVI.O), Cummins Inc (CMI.N), ConocoPhillips
(COP.N) and Pfizer Inc (PFE.N).

 

The first-quarter results come after a months-long rally in value stocks as
investors bet on the reopening of businesses as COVID-19 vaccines became
more available.

 

Value has outperformed growth names that include heavily weighted technology
stocks, and for the year so far, the Russell 1000 value index (.RLV) remains
up about 15%, while the Russell 1000 growth index (.RLG) is up about 8% in
that time.

 

Technology-related companies as well as banks - value trade favorites - have
had the largest percentage point contribution to estimated first-quarter S&P
500 earnings, with JPMorgan Chase & Co (JPM.N) and Apple Inc (AAPL.O) at the
top of the list, based on Refinitiv's data.

 

Tech (.SPLRCT) is also among the strongest sectors for year-over-year sales
growth for the quarter, Bianco noted.

 

While the risks of higher inflation and possibly higher taxes have given
some investors reason to become more cautious on growth shares, earnings may
make them think twice about avoiding the group.

 

"It pays for a lot of investors to be balanced between value and growth,"
said Sameer Samana, senior global market strategist at Wells Fargo
Investment Institute in St. Louis.

 

"We're actually carving out a third group ... defensives," he said, adding
that those are the areas for investors to avoid for now.-The Thomson Reuters
Trust Principles.

 

 

 

Exxon tops earnings estimates as oil prices, chemicals drive rebound

Exxon Mobil Corp (XOM.N) on Friday topped Wall Street quarterly earnings
estimates with its first profit in five quarters, boosted by higher oil
prices and strong chemicals margins.

 

Earnings from Exxon and rivals this year have been rising with crude oil
prices, up by a third this year, as a global oil surplus from the pandemic
drains and fuel demand recovers. The swing to a profit comes as European
rivals also posted results that exceeded pre-pandemic levels.

 

Quarterly results show Exxon's deep cost cuts have allowed it to turn the
corner on last year's historic annual loss and deliver strong cash flow need
to reduce debt. Exxon is fighting a hedge fund's over board seats and its
fossil fuel direction.

 

Net income was $2.73 billion, or 64 cents per share, in the first quarter,
compared with a loss of $610 million, or 14 cents per share, a year earlier.

 

Adjusted earnings of 65 cents per share beat analyst expectations of 59
cents, according to Refinitiv IBES data.

 

Improving economies are helping drive product demand, said Chief Executive
Darren Woods on a call with analysts.

 

"Thanks to our efforts over the last few years, we are a stronger company
with an improving outlook," Woods said.

 

Chemical earnings were the largest factor in first quarter results with a
profit nearly 10 times the year-ago level and the strongest in at least five
years. That business has been soaring on high prices and demand for
plastics.

 

Exxon's deep cost cutting also boosted earnings. Exxon's capital spending
fell to $3.1 billion, the lowest in nearly two decades. Expense cuts helped
lift cash flow to $9.3 billion, the highest since 2018.

 

When the company set spending plans in November, it was "difficult to call
what this year was going to look like," Woods said in an interview.

 

"We tended to back-end load the plan recognizing that the economic recovery
we anticipated would occur over the course of 2021 and gain momentum as we
headed in to the second and third quarters," Woods said.

 

A view of the Exxon Mobil refinery in Baytown, Texas September 15, 2008.
REUTERS/Jessica Rinaldi

It still expects to spend near the low end of its $16 billion to $19 billion
estimates for new projects, he said.

 

The Irving, Texas-based company last year cut $8 billion from operating
expenses and vowed to reduce operational spending by another $3 billion by
2023.

 

Shares, which have climbed 35% since January, were down 1.7% at $57.96 on
Friday alongside oil prices and other oil and gas companies.

 

Exxon covered its spending and dividend with cash flow for the first time
since the third quarter of 2018.

 

Net debt declined for the first time in several quarters, said analyst Biraj
Borkhataria of RBC Europe Limited.

 

But free cash flow yield, estimated at 9% this year, "remains well below
peers even in a bullish macro scenario," Borkhataria said.

 

Exploration and production, Exxon's largest business, earned $2.6 billion in
the first quarter on higher oil prices, compared with a profit of $536
million a year earlier.

 

Its chemicals business posted the best quarter since at least 2012, earning
$1.4 billion on better margins, up from a $144 million profit a year ago.

 

Exxon's chemicals business was once a profits engine but had faltered prior
to the pandemic. The company appears to be "righting the ship," said Peter
McNally, analyst at Third Bridge Group.

 

Refining lost $390 million, compared with loss of $611 million last year, on
winter storm shutdowns impacts and fuel demand.

 

With product sales down 8% from last year, Exxon needs "volume uptick to get
any kind of profit recovery" in refining, McNally said.-The Thomson Reuters
Trust Principles.

 

 

 

Stimulus checks boost U.S. consumer spending; inflation warming up

U.S. consumer spending rebounded in March amid a surge in income as
households received additional COVID-19 pandemic relief money from the
government, building a strong foundation for a further acceleration in
consumption in the second quarter.

 

Other data on Friday showed labor costs jumped by the most in 14 years in
the first quarter, driven by a pick-up in wage growth as companies competed
for workers to boost production. The White House's massive $1.9 trillion
fiscal stimulus and rapidly improving public health are unleashing pent-up
demand.

 

"While we aren't completely out of the woods yet, today's report shows the
beginning of an economic rebound," said Brendan Coughlin, head of consumer
banking at Citizens in Boston. "Assuming no setback in the continued rollout
of the vaccines, U.S. consumers are well-positioned in the second half of
the year to stimulate strong economic growth across the country."

 

Consumer spending, which accounts for more than two-thirds of U.S. economic
activity, increased 4.2% last month after falling 1.0% in February, the
Commerce Department said. The increase was broadly in line with economists'
expectations.

 

The data was included in Thursday's gross domestic product report for the
first quarter, which showed growth shooting up at a 6.4% annualized rate in
the first three months of the year after rising at a 4.3% pace in the fourth
quarter. Consumer spending powered ahead at a 10.7% rate last quarter.

 

Most Americans in the middle- and low-income brackets received one-time
$1,400 stimulus checks last month which were part of the pandemic rescue
package approved in March. That boosted personal income 21.1% after a drop
of 7.0% in February.

 

A chunk of the cash was stashed away, with the saving rate soaring to 27.6%
from 13.9% in February. Households have amassed at least $2.2 trillion in
excess savings, which could provide a powerful tailwind for consumer
spending this year and beyond.

 

The government's generosity and expansion of the COVID-19 vaccination
program to include all American adults is lifting consumer spirits, with a
measure of household sentiment rising to a 13-month high in April.

 

Wages are also increasing, which should to help to underpin spending when
stimulus boost fades.

 

In a separate report on Friday, the Labor Department said its Employment
Cost Index, the broadest measure of labor costs, jumped 0.9% in the first
quarter. That was the largest rise since the second quarter of 2007.

 

The ECI is widely viewed by policymakers and economists as one of the better
measures of labor market slack and a predictor of core inflation as it
adjusts for composition and job quality changes. Last quarter's increase was
driven by a 1.0% rise in wages, also the biggest gain in 14 years.

 

Wages in the accommodation and food services industry, hardest hit by the
pandemic, soared 1.7%.

 

Despite employment being 8.4 million jobs below its peak in February 2020,
businesses are struggling to find qualified workers as they rush to meet the
robust domestic demand.

 

A customer counts his cash at the register while purchasing an item at a
Best Buy store in Flushing, New York March 27, 2010. REUTERS/Jessica Rinaldi

U.S. stocks were lower after a recent rally. The dollar (.DXY) rose against
a basket of currencies. U.S. Treasury prices were higher.

 

INFLATION RISING

 

Federal Reserve Chair Jerome Powell on Wednesday acknowledged the worker
shortage saying "one big factor would be schools aren't open yet, so there's
still people who are at home taking care of their children, and would like
to be back in the workforce, but can't be yet."

 

Economists agree and expect the rising wages to contribute to higher
inflation this year.

 

The strengthening demand and the dropping of last year's weak readings from
the calculation lifted inflation last month.

 

The personal consumption expenditures (PCE) price index excluding the
volatile food and energy component increased 0.4% after edging up 0.1% in
February. In the 12 months through March, the so-called core PCE price index
increased 1.8%, the most since February 2020.

 

The core PCE price index is the Fed's preferred inflation measure for its 2%
target, which is a flexible average.

 

Powell reiterated on Wednesday that he expected higher inflation will
transitory. But some economists have doubts.

 

"While labor costs are hardly getting out of hand, there is clearly more
wage pressure in the economy at present than the early stages of the past
cycle," said Sarah House, a senior economist at Wells Fargo in Charlotte,
North Carolina.

 

"Stronger labor cost growth even before the economy hits full employment is
a reason to think that even after the reopening-fueled pop this year,
inflation is likely to settle above the anemic rate of the past cycle."

 

Households last month spent more on motor vehicles and recreational. They
also visited restaurants.

 

When adjusted for inflation, consumer spending rebounded 3.6% last month
after falling 1.2% in February. The rebound in the so-called real consumer
spending sets consumption on a higher growth trajectory heading into the
second quarter.

 

Most economists expect double-digit growth this quarter, which would
position the economy to achieve growth of at least 7%, which would be the
fastest since 1984. The economy contracted 3.5% in 2020, its worst
performance in 74 years.-The Thomson Reuters Trust Principles.

 

 

 

Analysis: Investors straining to look beyond India's COVID-19 crisis

Indian financial markets have struggled this month as the world's worst
COVID-19 crisis engulfs the country but international investors are betting
the economy will rebound quickly once the pandemic has passed.

 

Data shows that more foreign investment money has left India this month than
came in during the whole of the first quarter, as a catastrophic spike in
deaths leaves the world's second most populous country in turmoil. read more

 

Before the upsurge, the International Monetary Fund, banks and ratings
agencies were all predicting an impressive double-digit rebound in growth
this year, but many of those forecasts will now have to be ripped up.

 

JPMorgan's Indian economists have slashed their Q2 GDP estimates to a
seasonally adjusted -16% quarter-on-quarter from 6.5% and still see risks of
a larger stumble if the health crisis continues unabated.

 

Citi sees a "significant" chance it will have to cut its forecasts too,
while credit rating agency Fitch estimates the government's fiscal deficit
will nearly double to 14% of GDP this year and push India's debt-to-GDP
ratio over 90%.

 

"It is a really sad situation," said Lombard Odier's emerging market FX
strategist Kiran Kowshik, adding that the crisis was being compounded by
India's weak health system and the fact that many workers in informal
sectors need to able to get around to make a living.

 

The Indian rupee has been one of the world's worst performing heavyweight
currencies this month, down nearly 2%.

 

Indian stocks (.MIIN00000PUS) have underperformed the big global indexes
(.MIWD00000PUS) by nearly 7% and those in Brazil, which has also in the grip
of a serious COVID-19 surge, by nearly 12%.

 

Including bond market selling, Societe Generale estimates international
investors have yanked out over $6 billion from India in April.

 

But with new targeted lockdowns, the government reining in vaccine exports,
and ventilators and other support now arriving from abroad, Mumbai's $2.4
trillion Sensex stock index (.BSESN) has recovered some ground and the rupee
is heading for its best week since August.

 

"Prime Minister Modi, and the partial structural reform hopes he represents
for investors, is neither sufficiently vulnerable politically, nor are
Indian equities sufficiently expensive relative to history, to throw the
towel in on what remains the best country pick in large emerging markets,"
said Hasnain Malik, head of equity research at Tellimer.

 

STARS ALIGNING

 

The $600 billion of FX reserves the central bank has built up should
meanwhile cushion any capital outflows, and unlike last year, credit rating
agencies have stayed clear of downgrading India, which would push it out of
the investment-grade bracket.

 

Although Fitch warned about the debt rise and the likelihood already-weak
state banks will need more aid, it still believes the economy could grow
12.8% this fiscal year -- which runs March to March -- after shrinking
nearly 8% last year. read more

 

"The thing about India is that public deficits and debt is high, but it is
held almost exclusively domestically and the country has a very strong track
record of growth," said one of S&P Global's top sovereign analysts, Frank
Gill.

 

Lombard Odier's Kowshik points out that this month's equity market fall
comes after $36 billion was ploughed into Indian stocks between September
and March.

 

Aviva's head of Asia and global emerging markets Alistair Way says his firm
is tentatively looking at some beaten-down Indian shares again, while others
see boosts for the country's nascent domestic bond market.

 

The central bank has embarked on quantitative easing and authorities are
hopeful influential investment index providers like JPMorgan and Bloomberg
will soon include India, one of the only investment grade-rated countries
still not in those benchmarks. read more

 

Foreigners own just 2% of Indian government debt, roughly compared to
20%-40% in nearby Indonesia and Malaysia, but index inclusion could quickly
change that.

 

The government has already eased stringent foreign ownership limits that had
been a big hurdle for inclusion. Analysts say it is also likely to need to
be part of the key Euroclear ecosystem where buying and selling bonds is
easier.

 

"The stars are now getting aligned (for index inclusion) said Abhishek
Kumar, a managing director at State Street Global Advisors, who reckons
India's local bond market would eventually rack up the maximum 10% weighting
allowed on JPMorgan's $200-300 billion GBI-EM index.

 

The $20-30 billion that could bring in over time "would go a long way to
funding the COVID-related fiscal deficit this year," he said.-The Thomson
Reuters Trust Principles.

 

 

EU hits Apple with music streaming charge in boost for Spotify

EU regulators accused Apple (AAPL.O) on Friday of distorting competition in
the music streaming market, siding with Spotify (SPOT.N) in a case that
could lead to a hefty fine and changes in the iPhone maker’s lucrative
business practices.

 

The preliminary findings are the first time Brussels has levelled
anti-competitive charges against Apple, although the two sides have had
bruising clashes in the past, most notably a multibillion-dollar tax dispute
involving Ireland.

 

Apple, Spotify and other parties can now respond. If the case is pursued,
the EU could demand concessions and potentially impose a fine of up to 10%
of Apple's global turnover - as much as $27 billion, although it rarely
levies the maximum penalty.

 

Apple found itself in the European Commission's crosshairs after
Sweden-based Spotify complained two years ago that the U.S. tech giant
unfairly restricted rivals to its own music streaming service Apple Music on
iPhones.

 

The EU competition enforcer, in its so-called statement of objections
setting out the charge, said the issue related to Apple's restrictive rules
for its App Store that force developers to use its own in-app payment system
and prevent them from informing users of other purchasing options.

 

European Competition Commissioner Margrethe Vestager said there were clear
signs Apple's App Store rules were affecting music streaming rivals'
business development and affecting app developers more widely.

 

"They (app developers) depend on Apple App Store as a gatekeeper to access
users of Apple's iPhones and iPads. This significant market power cannot go
unchecked as the conditions of access to the Apple App Store are key for the
success of app developers," she told a news conference.

 

Vestager said Apple should end restrictive practices and refrain from doing
anything that would replicate them.

 

She also said other authorities were looking into the issue.

 

"We have contact with other jurisdictions doing similar cases, that could be
the Dutch, the Australians, the Americans," she said, adding she was also
interested in the app gaming market, although it was early days.

 

Apple rebuffed the EU charge.

 

 

"Spotify has become the largest music subscription service in the world, and
we're proud of the role we played in that," it said in a statement.

 

"They want all the benefits of the App Store but don't think they should
have to pay anything for that. The Commission's argument on Spotify's behalf
is the opposite of fair competition," it added.

 

INTERNET GATEKEEPERS

 

Spotify welcomed the EU move, describing it as "a critical step toward
holding Apple accountable for its anticompetitive behavior, ensuring
meaningful choice for all consumers and a level playing field for app
developers."

 

Reuters was first to report about the imminent EU antitrust charge in March.

 

Spotify, one of Europe's few global success stories in consumer technology,
is the market leader in music streaming with 356 million active users and
158 million paid subscribers.

 

Apple Music, launched more recently in 2015, is estimated to have more than
70 million subscribers although the company does not give a separate figure
for that part of its business.

 

Competition between the two companies has intensified in recent weeks, with
both seeking to build their customer base via supremacy in the market for
podcasts.

 

"Europe’s consumers expect and deserve access to a full range of music
streaming services without their choices being restricted or prices being
inflated unfairly by internet gatekeepers," said European consumer
organisation BEUC.

 

The EU charge comes a week before Apple’s face off with Epic Games in a U.S.
antitrust trial following a lawsuit by the “Fortnite” creator alleging that
Apple has abused its dominance in the market for mobile apps.

 

Epic has complained to the Commission on the same issues.

 

Last month, the UK Competition and Markets Authority opened an investigation
into Apple after complaints the iPhone maker’s terms and conditions for app
developers were unfair.-The Thomson Reuters Trust Principles.

 

 

 

Bitcoin rises 6.54% to $57,098.08

Bitcoin rose 6.54% to $57,098.08 on Friday, adding $3,504.11 to its previous
close.

 

Bitcoin, the world's biggest and best-known cryptocurrency, is up 105.9%
from the year's low of $27,734 on Jan. 4. It is down 12% from the year's
high of $64,895.22 on April 14.

 

Ether , the coin linked to the ethereum blockchain network, rose 1.06 % to
$2,787.35 on Friday, adding $29.29 to its previous close.- The Thomson
Reuters Trust Principles.

 

 

 

Berkshire annual meeting to showcase Munger as he rejoins Buffett

Berkshire Hathaway Inc's (BRKa.N) widely anticipated annual meeting on
Saturday will be held virtually for a second year but reclaim one bit of
normalcy as Charlie Munger rejoins fellow billionaire Warren Buffett to
answershareholder questions.

 

The meeting gives Buffett, 90, and Munger, 97, a stage to explain over 3-1/2
hours what to expect from Berkshire's dozens of businesses, markets and the
economy, and whether the company will continue aggressive share repurchases.

 

Still, with no shareholders in attendance, it will be shorn of the
festivities that normally draw about 40,000 annually to Omaha, Nebraska for
what Buffett calls Woodstock for Capitalists.

 

"The Berkshire event, it's hard to describe to someone who's never been
there," said Jim Weber, chief executive of the company's fast-growing Brooks
Running unit. "Nonetheless, the meeting will go on, and I'll be watching it,
probably on my treadmill."

 

Buffett has run Berkshire since 1965, and Munger has been vice chairman
since 1978.

 

The other vice chairmen, Greg Abel and Ajit Jain, who respectively oversee
Berkshire's non-insurance and insurance businesses, will be on hand to
answer some questions. They are top contenders to succeed Buffett as
Berkshire chief executive.

 

Saturday's meeting should illustrate how Buffett and Munger have thrived
together for so long, despite differences in politics - Buffett is a
Democrat, Munger a Republican - and often investment ideas.

 

Munger, a Californian, did not travel to last year's meeting in Omaha, which
was disrupted by the pandemic.

 

This year, Buffett said in his shareholder letter he is traveling to Los
Angeles to reunite with his friend and business partner of more than six
decades.

 

"Charlie's perspective often may challenge Warren's," said Paul Lountzis,
president of Lountzis Asset Management LLC in Wyomissing, Pennsylvania and a
Berkshire shareholder. "But he often augments what Warren says, in a more
direct way and with a great sense of humor."

 

Like Buffett, Munger tries to teach as he speaks, thinks long-term, and
eschews investments whose main attribute is being in vogue.

 

"He's reassuring," said Tom Russo, who invests more than $10 billion at
Gardner, Russo & Quinn in Lancaster, Pennsylvania and has invested in
Berkshire since 1982. "For people who follow that reassurance, the rewards
have been mighty."

 

BUYBACKS ON MY MIND

 

The meeting will be broadcast on Yahoo Finance, which said last year's
meeting drew 2.5 million streams.

 

It comes with Berkshire shares on a roll, outpacing the Standard & Poor's
500 (.SPX) by seven percentage points in 2021 through Wednesday.

 

That's an improvement from 2019 and 2020, when "value" stocks lagged and
Berkshire, which pays no dividend, trailed the index by 36 percentage
points.

 

Saturday's meeting will begin a few hours after Berkshire releases
first-quarter results. Analysts expect operating profit, which excludes
stock holdings such as Apple Inc (AAPL.O) and Bank of America Corp (BAC.N),
to be similar to last year.

 

Berkshire will also say how much of its own stock it repurchased, following
$24.7 billion of buybacks last year.

 

Buybacks will be "on everyone's mind," Russo said.

 

James Armstrong, president of shareholder Henry H Armstrong Associates in
Pittsburgh, hopes Buffett and Munger will discuss how Berkshire can be
managed over the long term to address its "most important investment
problem," its large size.

 

Shareholders will likely reject two proposals requiring more disclosures
about climate change and diversity. Berkshire and Buffett, who has nearly
one-third of its voting power, oppose both. read more

 

While Berkshire's Omaha office never closed during the pandemic, many of its
businesses suffered, and Buffett and Munger will likely address their plans
for better times ahead.

 

Precision Castparts is trying to rebound from a plunge in travel that erased
demand for its aircraft parts, causing a $9.8 billion writedown and 13,400
job losses.

 

And while the Geico car insurer, led by Todd Combs, one of Buffett's
investment managers, saw accident losses decline, it drew criticism for
offering drivers only credits on policy renewals when other insurers rebated
premiums.

 

Other possible issues are Berkshire's failed venture with Amazon.com Inc
(AMZN.O) and JPMorgan Chase & Co (JPM.N) to cut healthcare costs, and its $8
billion proposal to build 10 Texas power plants to avert more devastating
blackouts in that state.

 

Shareholder questions aren't limited to Berkshire.

 

It would be no surprise to hear disdain for bitcoin, which Buffett has
called "rat poison squared" and Munger termed "the pursuit of the uneatable
by the unspeakable."

 

Munger, meanwhile, has said the craze for special-purpose acquisition
companies (SPACs) that take private companies public signaled "an irritating
bubble."-The Thomson Reuters Trust Principles.

 

 

 

Apple and Alphabet pull Wall Street lower

Wall Street dropped on Friday, with Apple, Alphabet and other tech-related
companies dipping despite recent strong quarterly earnings reports.

 

A day after the S&P 500 closed at a record high, Apple (AAPL.O),
Google-parent Alphabet (GOOGL.O) and Facebook (FB.O) each fell more than 1%,
giving back gains following upbeat quarterly reports this week.

 

Amazon.com Inc (AMZN.O) rose 0.4% after it posted record profit late on
Thursday and signaled that consumers would keep spending in a growing U.S.
economy. Amazon had been up over 2% earlier in the session.

 

Twitter Inc (TWTR.N) plunged 14% after it offered a tepid revenue forecast
for the second quarter, saying user growth could slow as the boost seen
during the pandemic fizzles.

 

While megacap favorites posted largely strong earnings in the first quarter,
their shares have struggled to maintain the upward trajectory that many had
coming into reporting season.

 

"There is a sense that maybe next quarter is as good as it's going to get,
and we're going to roll over, particularly among the Nasdaq stocks and Big
Tech stocks that benefited from the pandemic," said Jack Ablin, chief
investment officer at Cresset Wealth Advisors in Palm Beach, Florida.

 

Most of the 11 major S&P 500 sector indexes were lower, with technology
(.SPLRCT) and materials (.SPLRCM) down more than 1%, while energy (.SPNY)
dropped 2.2%.

 

Of the 303 companies in the S&P 500 that have reported so far, 87.1% have
topped analysts' earnings estimates, with Refinitiv IBES data now predicting
a 46.3% jump in profit growth.

 

Data on Friday showed U.S. consumer spending rebounded in March amid a surge
in income as households received additional COVID-19 pandemic relief money
from the government.

 

Despite Friday's weakness, the Nasdaq (.IXIC) is set for six consecutive
months of gains, boosted by impressive results from big technology
companies. The Dow Jones Industrial Average (.DJI) is on course to end in
the positive territory for three months in a row.

 

The Dow Jones Industrial Average (.DJI) was down 0.59% at 33,859.8 points,
while the S&P 500 (.SPX) lost 0.72% to 4,180.97.

 

The Nasdaq Composite (.IXIC) dropped 0.85% to 13,963.28.

 

Chevron Corp (CVX.N) shed more than 3% after its first-quarter profit fell
29%, hit by weaker refining margins and production losses. read more

 

AbbVie Inc (ABBV.N) rose 0.6% after it reported strong results and raised
its 2021 earnings forecast, helped by demand for its rheumatoid arthritis
drug in the United States.

 

Declining issues outnumbered advancers for a 2.12-to-1 ratio on the NYSE and
for a 1.98-to-1 ratio on the Nasdaq. The S&P index recorded 44 new 52-week
highs and no new low, while the Nasdaq recorded 52 new highs and 26 new
lows.- The Thomson Reuters Trust Principles.

 

 

 

Nigeria: NNPC Confirms Memo On Zero Oil Revenue, Blames 'Unscrupulous
Persons' for Leak

The Nigerian National Petroleum Corporation (NNPC) has said that the zero
revenue projection contained in its letter to the Accountant General of the
Federation pertains only to the revenue stream it manages for the country.

 

The NNPC said this in a statement by its Group General Manager, Group Public
Affairs Division, Kennie Obateru, on Friday via its verified Twitter handle.

 

The statement came after a letter the NNPC sent to the Accountant General,
where it said fuel subsidy had wiped off oil revenue, was widely reported.

In the letter, the NNPC said it would deduct N112 billion from oil and gas
proceeds for April to ensure continuous supply of petroleum products to the
country and guarantee energy security.

 

That means there will be no oil revenue for the federal government to share
with the states and local governments.

 

In its statement, he NNPC claimed the letter was "inappropriately shared by
an unscrupulous person", fueling reports of impending revenue shortfalls
with dire consequences for the various tiers of government.

 

The press release said the clarification became necessary in the light of
media reports that the corporation was in financial straits.

 

The statement said the NNPC is conscious of its role and is doing everything
possible to shore up revenues and support the federation at all times.

 

"The shortfall will be remedied by the Corporation as it relates only to the
Federation revenue stream being managed by the NNPC and does not reflect the
overall financial performance of the Corporation," it said.

 

"The NNPC remains in positive financial trajectory for the period in
question."

 

The Corporation pledged to continue to pursue and observe its cost
optimisation process with a view to maximizing remittances to the federation
account.-Premium Times.

 

 

 

Nigeria: First Bank Reacts to CBN's Sacking of Its Board

First Bank says it will cooperate with the regulator and that its operations
are unhampered.

 

The management of FBN Holdings PLC, the parent company of First Bank, says
the holding company and the bank will cooperate with the new directive from
the Central Bank of Nigeria.

 

The company made this known on Friday through a corporate disclosure to the
Nigerian Exchange Limited. The statement was signed by the company
secretary, Seye Kosoko.

 

The regulator sacked the board of the bank and its holding company on
Thursday, in a dramatic move that came a day after the bank named a new
managing director.

First Bank, Nigeria's premier bank, has for years been plagued by "bad
credit decisions, significant and non-performing insider loans and poor
corporate governance practices", the CBN said Thursday.

 

In a speech to journalists, CBN governor, Godwin Emefiele, said First Bank
maintained healthy operations up until 2016 financial year when the CBN's
examination revealed that the bank was in grave financial condition with its
capital adequacy ratio and non-performing loans ratio substantially
breaching acceptable standards.

 

First Bank has over 31 million customers with deposit base of N4.2 trillion,
shareholders' funds of N618 billion and NIBSS instant payment (NIP)
processing capacity of 22 per cent of the industry.

 

In his speech, Mr Emefiele announced the reinstatement of Sola Adeduntan as
the managing director and chief executive officer of the bank, a day after
he was removed by the board.

He said the regulator learned about the removal through the media.

 

In a response Friday, First Bank said it will cooperate with the regulator
and that its operations are unhampered.

 

Read the banks statement below:

 

STATEMENT TO THE NGX ON RECENT DEVELOPMENTS IN FBN HOLDINGS PLC AND FIRST
BANK OF NIGERIA LIMITED

 

In accordance with the Nigerian Exchange Limited (NGX) Rule Book, we hereby
notify the NGX and the investing public of recent developments in FBN
Holdings Plc and First Bank of Nigeria Limited.

 

Further to the press Conference held by the Governor of the Central Bank of
Nigeria, Mr. Godwin Emefiele on Thursday, 29 April 2021, the Boards of FBN
Holdings Plc and First Bank of Nigeria Limited were dissolved and new Boards
reconstituted, pursuant to the powers vested in the Central Bank of Nigeria
as the primary regulator of both companies.

 

The Board of Directors of FBN Holdings Plc is now comprised as follows:

 

 

1. Mr. Remi Babalola - Chairman

 

2. Dr. Abiodun Oluwole Fatade

 

3. Mrs. Kofo Dosekun

 

4. Mr. Remi Lasaki

 

5. Dr. Alimi Abdulrasaq

 

6. Mr. Ahmed Modibbo

 

7. Mr. Khalifa Imam

 

8. Sir Peter Aliogo

 

9. UK Eke, MFR - Managing Director

 

The Board of Directors of First Bank of Nigeria Limited is now comprised as
follows:

 

1. Mr. Tunde Hassan-Odukale - Chairman

 

2. Mrs. Tokunbo Martins

 

3. Mr. Uche Nwokedi

 

4. Mr. Adekunle Sonola

 

5. Ms. Isioma Ogodazi

 

6. Mr. Ebenezer Olufowose

 

7. Mr. Ishaya Elijah B. Dodo

 

8. Dr. Sola Adeduntan - Managing Director

 

9. Mr. Gbenga Shobo - Deputy Managing Director

 

10. Mr. Remi Oni - Executive Director

 

11. Mr. Abdullahi Ibrahim - Executive Director

 

We wish to confirm that the Bank and the Holding Company are both
cooperating with the Central Bank of Nigeria and other regulators while the
operations of the Bank and the Holdco are not hampered or hindered and are
in fact running smoothly.

 

We wish to reassure the investing public, our esteemed customers and other
stakeholders in the words with which the Governor of the Central Bank of
Nigeria concluded his press conference on 29 April 2021: "The CBN hereby
reassures the depositors, creditors and other stakeholders of the bank of
its commitment to ensuring the stability of the financial system. There is
therefore no cause for panic amongst the banking public, given that the
actions being taken are meant to strengthen the bank and position it as a
banking industry giant."

 

In closing, we wish to advise investors that, we are aware of our
responsibilities to our shareholders and will work to discharge those
responsibilities in the manner expected of a company listed on the Premium
Board of NGX Exchange Limited.-Premium Times.

 

 

 

Tanzania: Mining Sector Targets Increased Revenue Collection

THE Ministry of Minerals is focusing on strengthening revenue collection to
boost the contribution of the mining sector to the Gross Domestic Product
(GDP).

 

Revenue collection is part of several key priority areas that will be given
an added impetus in the 2021/22 fiscal year, Parliament was told yesterday.

 

Presenting his ministry's budget estimates, Minister for Minerals, Dr Dotto
Biteko, said government focus is to collect 696,441,872,667/- for 2021/2022
compared to 547,735,863,597/- for fiscal year 2020/2021.

 

He pointed out that of the funds so far collected, 650,010,002,000/-
(equivalent to 93.33 percent) would be submitted to the Treasury and
46,431,870,667/- (equivalent to 6.67 percent) would be used by institutions
under the ministry.

According to him, the ministry would make efforts to develop small-scale
miners and enable citizens to participate in the mining economy, adding that
the ministry is also looking forward to encourage mineral value addition
activities, encourage trade and investment in the mining sector and oversee
the mining operations audit system.

 

Dr Biteko said that the ministry would encourage and attract trade in mining
with other African countries, especially the East African Community,
Southern Africa Development Community and the Great Lakes Region to make
Tanzania a hub for mining business.

 

He also pointed out that the ministry would build the capacity of its
institutions to carry out their responsibilities effectively, especially
developing human resources and improving the working environment.

In strengthening revenue collection and increasing the contribution of the
mining sector to the GDP, Minister Biteko told the House that his ministry
would support the control and management of large and medium mining so that
it could benefit the nation and investors equally.

 

He said that the government through the ministry would implement strategies
for controlling smuggling and illegal trade in minerals in the country by
strengthening mining markets.

 

"We will establish and strengthen the Kalema gold market, open and manage
largescale mining and place emphasis on graphite and other minerals," the
minister said.

 

He further explained that government would develop strategies to strengthen
the market for Tanzanite and other gemstones to increase revenue and ensure
all large and medium mines employ, purchase services and products from the
country at a reasonable rate.

 

In promoting small-scale miners and enabling citizens to participate in the
mining economy, the ministry would design and strengthen the implementation
of programmes to enable them to carry out their activities effectively by
allocating areas or providing licences with basic geological information.

 

He said the government would link small miners with banks so that they could
get loans; providing low-cost research services, developing small and medium
and largescale miners and providing them with the necessary training on
mining and refining skills.-Daily News.

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


BAT

AGM

Cresta Lodge, Msasa

30/04/21 10am

 


 

Workers Day

 

01/05/21

 


FCB

AGM 

virtual

06/05/21 : 3pm

 


NMB

AGM

virtual

1205/21 :  3:30pm

 


 

Africa Day

 

25/05/21

 


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
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been compiled from sources believed to be reliable, but no representation or
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opinions expressed and recommendations made are subject to change without
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suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
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for guideline purposes only and sourced from third parties.

 


 

 


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