Major International Business Headlines Brief::: 21 May 2021

Fri May 21 09:15:09 CAT 2021

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Major International Business Headlines Brief::: 21 May 2021

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ü  WeWork reports $2bn loss ahead of stock market debut

ü  Retail sales soar in April as shops reopen

ü  Australia trade deal: Ministers discuss British farmers' concerns

ü  Oatly: Oprah-backed firm's shares soar in stock market debut

ü  Elon Musk UK visit drives Tesla factory rumours

ü  Higher plastic bag charge comes into force in England

ü  Amber list travel is legal, says EasyJet boss

ü  U.S. weekly jobless claims decline further; mid-Atlantic factory activity cools

ü  Asian tech shares track Nasdaq gains as inflation fears recede

ü  EXCLUSIVE Huawei to expand smart car partnership with Changan to chips -sources

ü  Apollo co-founder Josh Harris to step down from private equity firm

ü  Tesla cars barred from some China government compounds - sources

ü  McDonald's is sued for $10 billion for alleged bias against Black-owned media

ü  Rwanda: Hotels, Suppliers Count Losses as CHOGM is Suspended

ü  Nigerian Sovereign Investment Authority Records 343 Percent Increase in Income

ü  Tunisia Receives €20-Million Grant From Germany to Support Private Sector

ü  East Africa: Ethiopia, Sudan Discuss Railway Project in Khartoum

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WeWork reports $2bn loss ahead of stock market debut

Office-sharing startup WeWork has posted a $2.06bn (£1.45bn) quarterly loss after being hit hard by Covid-19.

The announcement comes as WeWork prepares for its stock market debut.

The company's first attempt to go public collapsed in 2019 over concerns about its business model and co-founder Adam Neumann's leadership style.

Since Mr Neumann's exit the company has gone through a major shakeup that has seen major job cuts and businesses sold off.

The business felt the impact of the pandemic particularly hard as social distancing rules drove a surge in people working from home and concerns about infections saw workers avoiding shared office spaces.

WeWork, which is backed by Japanese tech giant SoftBank, said its first-quarter revenue almost halved from a year ago to $598m.

But the firm said people are now returning to its offices as coronavirus restrictions are eased.

Its occupancy rate edged up to 50% in the most recent quarter, compared to 47% in the previous three months.

The company also said it expects the change in working habits to increase demand for the kind of short-term leases it offers.

Stock market plans

In March, WeWork said it would finally see its shares start trading on the stock market, through the purchase by the publicly traded BowX Acquisition Corp.

BowX is a so-called special purpose acquisition company, a shell firm that uses proceeds from a public listing to buy a private firm.

The firm is led by the owner of the NBA's Sacramento Kings and affiliated with basketball legend Shaquille O'Neill.

The deal valued WeWork at $9bn - roughly a fifth of the its estimated worth in 2019, before its earlier flotation effort spectacularly imploded.

Investors had raised questions about the company's finances and how the business was being managed by founder Adam Neumann, who then left the firm.

After plans to list the company were shelved, WeWork restructured the the business.

It closed around 100 locations, pulled out of non-core ventures - including a dog walking app and a wave pool maker - and now has just a third of the employees it did in mid-2019.

The company said it incurred restructuring costs of $494m, including its settlement with Mr Neumann. It posted an impairment charge of $299m partly due to an exit out of some real estate.

In February, WeWork's backer, SoftBank, and Mr Neumann reached a settlement to end a legal battle that started in 2019.--bbc

Retail sales soar in April as shops reopen

Shoppers searching for new clothes helped to boost retail sales volumes by 9.2% in April, as lockdown measures eased and non-essential shops reopened.

Sales of clothing jumped by nearly 70% compared with the previous month, the Office for National Statistics (ONS) said.

Sales overall were more than 10% higher than pre-pandemic levels, although online sales dipped.

Fuel sales increased, but remained below levels seen before coronavirus.--bbc

Australia trade deal: Ministers discuss British farmers' concerns

Senior ministers have met to discuss concerns about how a zero-tariffs free-trade deal with Australia would affect UK farmers.

International Trade Secretary Liz Truss said on Wednesday that negotiators were "in a sprint" to secure an agreement in principle by early June.

But a farming union has warned of "irreversible damage" from a bad deal and the cabinet is reportedly split.

There are fears huge Australian cow and sheep farms could undercut UK rivals.

The UK government is keen to strike trade deals following Brexit and has indicated that the agricultural sector may have to prepare for the lowering of tariffs on imports.

In 2019-20, trade in goods and services between Australia and the UK was valued at £20.1bn, and both sides are hoping to expand this amount considerably.

Currently, trade in meat between the two countries is very small.

Approximately only 0.15% of all Australian beef exports go to the UK.

Last year, 14% of sheep meat imports to the UK came from Australia.

The Financial Times has reported that Environment Secretary George Eustice and Cabinet Office minister Michael Gove strongly disagree with Ms Truss and Brexit minister Lord Frost over granting tariff-free access to Australian, and possibly New Zealand, farmers.

Ministers met earlier on Thursday to discuss the issues.

The BBC's Laura Kuenssberg said a source had given her a "flavour" of how the meeting went, tweeting: "Liz [Truss] left the room happier than [George] Eustice".

Our political editor said while it was "not quite white smoke on what was actually decided" we "should have a better indication" by the end of the day about what was discussed.

Chancellor Rishi Sunak has said that any trade deal signed by the UK government will include "the appropriate safeguards and protections" for farming and standards.

In an interview with BBC Newsbeat he said: "The government is keen to try and conclude a trade deal with Australia that's good for British businesses and good for British shoppers."

The National Farmers' Union has urged ministers to "make sure concessions to our hugely valuable home market are not given away lightly", while the Scottish and Welsh governments have also raised concerns.

Scottish Rural Affairs Secretary Mairi Gougeon has written to Ms Truss, arguing that "a trade deal that liberalises tariffs for Australian farmers, to put it bluntly, will put UK farmers out of business".

She also suggested imposing quotas to control imports of lamb and beef, which must be "duly maintained and not eroded over time".

'How can we compete?'

And Welsh First Minister Mark Drakeford told BBC Radio 4's Today programme he wanted a "level playing field".

"How can our hill farmers compete with Australian climate?" he asked. "How can our hill farmers compete with the space that is available for the huge farms that they have in Australia?"

Mr Drakeford said UK animal welfare standards were "higher" than those in Australia, making two-way trade more difficult.

Ultimately the aim of any trade deal is pretty simple.

Both sides want the best for their consumers and businesses but if there was a soundtrack to trade rounds it will be "You Can't Always Get What You Want" because there has to be compromise involved.

What's at stake here is exactly which of those red lines we're likely to want to bend, because Australia has all along said it wants more access for its farmers. It wants no tariffs on the goods it sends to the UK, and it doesn't want any quotas involved.

That has alarmed farmers here - our farms tend to be much smaller, maybe a few dozen herd of cattle, as opposed to thousands - and also we have higher charges for things like environmental standards, so they say we'd be disadvantaged.

We know some cabinet ministers have some sympathy with that, but the Department for International Trade argues there will still be safeguards in place, any changes will be introduced over many years. And if you look at what Australia actually sells to us at the moment, they are not taking full advantage of the allowances they already have.

This is about Global Britain's bigger ambitions and how that is going to be playing out over the years. Because ultimately trade economists say if you look at the change in imports we could see under a zero tariffs situation , they are equal to 0.1% of our total imports. Pretty tiny.

It's when you start talking about deals with the big players in agriculture - the US and Brazil. They'll be watching this one closely.

2px presentational grey line

The Conservative MP, Dehenna Davison, told BBC Radio 5 Live that cheaper meat imports from Australia "could bring down the price of a weekly shop" and "that can be seen as a good thing".

But she said poor quality food would not be brought in to the country and the government "would not let" the UK be "flooded" with an influx of cheap meat to undercut British farmers.

The prime minister's official spokesman said the UK was seeking deals "tailored so that they can best meet the needs of the British people".

"We want to secure an ambitious deal that benefits businesses and consumers across the UK, and of course any agreement will include protection for the agriculture industry," he added.

Fiona Simpson, president of Australia's National Farmers' Federation, told BBC Today programme on Radio Four, she wanted to "re-establish a very strong trade relationship with the UK, which we had before the UK joined the EU".

She added that some UK consumers had a desire to "eat some Aussie beef".

But Australian farmers were "just not able to ship our produce in any sort of a quantity to the UK", Ms Simpson said, adding: "It's just way too expensive and way too far."-bbc

Oatly: Oprah-backed firm's shares soar in stock market debut

Oatly, the plant-based milk company whose celebrity backers include Oprah Winfrey and Natalie Portman, saw its shares soar on its stock market launch.

The Swedish-based firm set its debut share price at $17 each, but that shot to $22 in opening trading, valuing Oatly at more than $13bn (£9.2bn).

The US listing is a sign of the booming popularity of non-dairy products.

It follows other plant-based food brands that have gone public, such as vegan burger maker Beyond Meat.

Oatly is raising $1.43bn through the initial public offering, which chief executive Toni Petersson said would be used to expand production.

"That's why the time is right now… it is perfect for us from a business perspective," he said.

"We are bringing new capacity on board every single quarter this year. Our growth completely relies on our supply and our ability to do that."

Rising popularity

Oatly, which was founded in the 1990s and produces a milk substitute made from oats, has grown rapidly in recent years.

Its oat milk is now sold in 60,000 shops and more than 32,000 coffee shops across 20 countries. Its product range has also expanded to include yoghurt and ice cream.

Oatly raises $200m from celebrity backers including Oprah and Jay-Z

Veganism: Why are vegan diets on the rise?

Other celebrity investors in the firm include Jay-Z and Natalie Portman, It has also had investment from the state-owned China Resources and Verlinvest, a Belgium-based investment firm.

When it launched in the US in 2016, the product was so popular it saw shortages. It now boasts partnerships with huge companies such as Starbucks and has recently agreed a partnership with e-commerce giant Alibaba in China.

UK expansion

Oatly is also set to open its first UK factory in Peterborough in 2023, creating "at least" 200 jobs.

The unit will be capable of producing up to 300 million litres of oat milk a year at launch.

Mr Petersson told the BBC that the decision to open the plant was because of the size of the UK market, describing it as a "centre of gravity" for the firm.

"It's the biggest single market in Europe for us and growing really strong - that's a place we're really prioritising in our plans.

"It's a great location to reach the people and where the consumer heat is - and that's what's important for us."

Researchers have predicted that the market for dairy alternatives could almost double over the next five years, as increased dairy allergies and concerns about dairy's environmental impact push shoppers to look for plant-based options.

However, Oatly faces increased competition from other consumer giants.

Nestle, for example, recently launched a pea-based milk under its Wunda brand, while Unilever's Ben & Jerry's now offers dairy-free versions of its ice cream range.

And although Oatly's sales are increasing, its losses have widened due to spending on marketing campaigns, researching new products and opening new factories.

Its net loss in 2020 totalled $60.4m, up from $35m the previous year, while sales more than doubled to $421m, according to regulatory filings.-bbc

Elon Musk UK visit drives Tesla factory rumours

A brief visit by Tesla boss Elon Musk to Luton has ignited rumours that he is considering a Tesla factory in the UK.

The electric car mogul flew into Luton Airport on a private jet last weekend and stayed two days, reports say.

The Daily Telegraph reports that the visit coincides with a hunt by UK officials for "a major new car plant" location.

The secrecy around the bids has led to speculation that Mr Musk may be involved.

The Telegraph reported (behind a paywall) that regional authorities - including those in Teesside and the West Midlands - were given an unusually short 48 hours to prepare bids for a 250-hectare site, without being told what company the bid was for.

The process was run by the Office for Investment, a new government office which is designed to help smooth out discussions between the public sector and private foreign investors post-Brexit.

Flight-tracking software showed that a private Gulfstream jet widely reported to belong to Mr Musk, landed at Luton Airport from California.

The plane then moved on to Germany, where Mr Musk paid a visit on Monday to the site of Tesla's large "gigafactory", which has been plagued by delays.

However, neither the government nor Tesla have confirmed the speculation about Mr Musk's brief stop in the UK.

It's also not the first time Mr Musk has landed in Luton for a brief visit, fuelling such rumours - he was reported to have made a similar stop in June last year.

For Elon Musk, Luton Airport - with its private terminal for corporate jets - may be just a handy place for a brief stop on his way to inspect his German operations.

But for a UK government desperate to boost inward investment, the stopovers - and there have been several - are a vital opportunity to woo the Tesla tycoon.

Two years ago he made it clear that Brexit uncertainty was a factor in rejecting the UK and choosing Berlin as the location for Tesla's "gigafactory", which the company bills as "the most advanced high-volume electric vehicle production plant in the world".

But British officials have not given up, stressing that outside the EU those pesky state aid rules don't apply, meaning there could be substantial government funding for a factory here.

Now it's still hard to see the logic for a Tesla plant just to supply the UK market - but Elon Musk has shown himself to be adept at taking advantage of government subsidies and tax breaks at home in the US, as well as in Germany. So don't rule it out quite yet.-bbc

Higher plastic bag charge comes into force in England

The cost of a single-use plastic carrier bag in English shops has gone up from 5p to 10p.

All stores, big and small, have to apply the charge from Friday. Until now, smaller retailers were exempt.

The original 5p levy was introduced in England in 2015. Since then, the use of the bags has declined by more than 95%.

Campaign group Friends of the Earth urged the government to go even further, saying the bags were part of a bigger plastic problem.

The group welcomed the scheme, but said it still had "significant shortcomings".

Campaigners said the charge should be extended to paper carrier bags, while so-called "bags for life", which are designed to be reused but contain greater amounts of plastic, were posing a "growing problem".

"It seems that many plastic 'bags for life' are being used just once and not reused for the bag's lifetime, as is their purpose," said the group's plastics campaigner, Camilla Zerr.

"If ministers want to get to the root of this problem, they need to take a tougher stand against all single-use plastics."

The environmental group's warning has already been heeded by supermarkets including Morrisons and the Co-op, which have discontinued the sale of plastic bags for life.

Friends of the Earth said the government's forthcoming Environment Bill should include "legally binding targets" to phase out the use of all unnecessary single-use plastic products.

'Ambitious action'

The average person in England now buys just four single-use carrier bags a year from the main supermarkets, compared with 140 in 2014.

By extending the charge to all retailers, the government hopes the use of single-use carrier bags will fall by 70-80% in small and medium-sized businesses.

Environment minister Rebecca Pow said: "Everyone wants to play their part in reducing the scourge of plastic waste that blights our environment and oceans.

"The 5p bag charge has been hugely successful, but we can go further."

She added that the new higher charge in England would "support the ambitious action" the UK has already taken in its fight against plastic, "as we build back greener".-bbc

Amber list travel is legal, says EasyJet boss

Travel to amber list countries is "absolutely legal", EasyJet boss Johan Lundgren has said, after the government advised people not to go to those countries on holiday.

Mr Lundgren said the government stance was "very confusing" and frustrating for passengers, and testing was costly.

However, Transport Secretary Grant Shapps denied that the government was sending mixed messages about travel.

The legal ban on foreign holidays ended on Monday.

The government has brought in a traffic light system of rules for international travel, with people returning from green list countries not having to quarantine.

But travellers returning from amber list countries, which may have entry restrictions, must self isolate for 10 days when they return.

On Tuesday, Prime Minister Boris Johnson said people should not holiday in amber list countries.

Coronavirus restrictions on travel have hit the aviation sector very hard over the course of the pandemic.

On Thursday, EasyJet reported that losses for the six months to 31 March had widened to £645m from £353m a year earlier.

Mr Lundgren told the BBC this was "clearly a significant loss, and it's really down to the travel restrictions we've seen across Europe".

The airline plans to fly only about 15% of its pre-pandemic capacity during the three months to the end of June, but said it was "ready to significantly ramp up our flying for the summer"

Mr Lundgren called for an extension of the green list to include more European countries.

He added the whole point of the traffic light system was to allow travel to restart again safely, and that it was "absolutely legal to travel to amber list countries".

"There was no indication they [passengers] shouldn't travel to these countries, because that's what the restriction was supposed to do - it was there to make sure you could do this in a safe way," he said.

"We have a huge amount of people that are contacting us to say: 'Look, can I go? Can't I go?' - So it's been very confusing, and the government is almost dismantling the system that it set up themselves," he added.

According to Johan Lundgren, by discouraging leisure travel to amber list countries, the government is undermining its own policy.

As he pointed out, going to an amber list country is not illegal - even for a holiday. But the government says you shouldn't do it. Passengers, he says, are confused.

The whole idea of having a traffic light system, he suggested, was to have different levels of restrictions for different risks.

The underlying message: why bother having a graded system if you'd rather people didn't travel at all?

While an airline chief executive calling for travel restrictions to be eased is hardly a shock, his comments on the amber list will add to the pressure the government is under, over what critics claim is an incoherent or contradictory approach.

Mr Lundgren also called for VAT to be removed from the cost of Covid testing when holidaymakers return to the UK.

He said the numerous costs and testing was making people who want to go on holiday or reunite with families "extremely frustrated".

He added the airline had agreed a £60 price for the required PCR tests, but pointed to comments from the European Parliament which has called for free testing for all, including PCR tests.

Green list push

Grant Shapps said that the government was not sending mixed messages about travel.

He said all countries by default start on the amber list, and are put on the green list if they have low coronavirus incidences and are tracking how the disease mutates. They go on the red list if the government has "great concerns".

"The amber list and the red list are not for holidaymakers," Mr Shapps said, adding that after a year of lockdowns the government does not want to take risks.

Nevertheless, he is pushing for the number of green list countries to be extended.

"We've ended up getting way ahead in terms of our vaccination programme in this country, and we're just having to wait for other countries to catch up," he said. "And that's going to gradually happen, and so that list should expand."

There are only very few countries at the moment on the green list.

People can travel to amber list countries in "extreme circumstances", Mr Shapps said, "perhaps because they have a sick family member".

However, he urged people to be patient, and to wait for other countries to be put on the green list before holidaying.

On Tuesday, Boris Johnson said people should not be holidaying in amber list countries, after Environment Secretary George Eustice had said people could go and visit friends.

Mr Johnson said: "I think it's very important for people to grasp what an amber list country is: it is not somewhere where you should be going on holiday, let me be very clear about that."--bbc

U.S. weekly jobless claims decline further; mid-Atlantic factory activity cools

The number of Americans filing new claims for unemployment benefits dropped further below 500,000 last week, but jobless rolls swelled in early May, which could temper expectations for an acceleration in employment growth this month.

Indeed, other data on Thursday showed a measure of factory employment in the mid-Atlantic region fell in May. But businesses in the region that covers eastern Pennsylvania, southern New Jersey and Delaware increased employees' work hours, suggesting problems finding workers. Labor and raw material shortages were likely behind the significant slowdown in the pace of growth in output at the region's factories this month.

The supply constraints follow pent-up demand unleashed by the economy's reopening after being severely disrupted by the COVID-19 pandemic for more than a year.

"If the data are taken at face value, it would suggest both a reduction in layoffs and a slowing in hiring, which given the rising level of labor demand could only be explained by a reduction in labor supply," said Conrad DeQuadros, senior economic advisor a Brean Capital in New York.

Initial claims for state unemployment benefits fell 34,000 to a seasonally adjusted 444,000 for the week ended May 15, the Labor Department said. That was the lowest since mid-March 2020 and held claims below 500,000 for two straight weeks.

Economists polled by Reuters had forecast 450,000 applications for the latest week. Claims remain well above the 200,000 to 250,000 range that is viewed as consistent with healthy labor market conditions. They have dropped from a record 6.149 million in early April 2020.

Applications are likely to decrease further in the weeks ahead after Republican governors in at least 21 states announced they would withdraw next month from unemployment programs funded by the federal government. These included a weekly $300 subsidy, which businesses say are encouraging the jobless to stay at home instead of seeking work.

>From manufacturing to restaurants and bars, employers are scrambling to find workers, even as nearly 10 million Americans are officially unemployed. The enhanced unemployment benefits give more than most jobs paying minimum wages, which range from as low as $7.25 per hour to as high as $15.

Stocks on Wall Street rebounded after a three-day slide. The dollar slipped against a basket of currencies. U.S. Treasury prices rose.

SUPPLY CONSTRAINTS

Lack of child care facilities, with most schools offering partial in-person learning, as well as lingering fears of COVID-19 and pandemic-related retirements are also believed to be contributing to the worker shortage, which curbed hiring in April. The government-funded benefits expire in early September and school districts are expected to resume in-person classes in the fall, which economists hope will boost the labor pool.

Minutes of the Federal Reserve's April 27-28 policy meeting published on Wednesday acknowledged reports of businesses

"having trouble hiring workers." They noted some of the factors behind the worker scarcity "were seen as likely to remain significant while pandemic-related risks persisted." read more

But some economists, including at the White House, disagree that the generous benefits are a deterrent to work.

"Unemployment aid is not keeping workers on the sidelines," said Andrew Stettner, senior fellow at The Century Foundation. "Emergency unemployment aid is doing what it is meant to do, serving as a temporary lifeline while workers search for and return to work."

The claims data included the period during which the government surveyed business establishments for the nonfarm payrolls component of May's employment report. The economy created 266,000 jobs in April after adding 770,000 in March.

To get a better picture of how hiring fared in May, economists will await data next week on the number of people continuing to receive benefits after an initial week of aid. The so-called continuing claims are reported with a one-week lag.

Continuing claims increased 111,000 to 3.751 million during the week ended May 8. There were about 16 million people on unemployment benefits under all programs on May 1.

"The overall trend in labor market conditions remains positive, even though it is unclear how that will translate quantitatively into next month's employment data," said Lou Crandall, chief economist at Wrightson ICAP in Jersey City.

With more than a third of the population vaccinated, restrictions on services industry businesses are being lifted. The economy is also being underpinned by nearly $6 trillion in pandemic relief provided by the government over the past year.

In a separate report on Thursday, the Philadelphia Fed said its business activity index fell to 31.5 this month from 50.2 in April. A reading above zero indicates growth in the mid-Atlantic region's manufacturing sector.

Its measure of new orders received by factories grew at a slower pace in May relative to April as did shipments. But backlogs of uncompleted work continued to pile up, testament to the inputs shortage. The survey's gauge of factory employment dropped to a reading of 19.3 from 30.8 in April. The average workweek index jumped six points to 35.5.

Despite the bottlenecks in the supply chain, the economy is powering ahead. A third report from the Conference Board showed its gauge of future economic activity surging above its pre-pandemic level in April.

"The economy is solidifying at a high level of growth," said Joel Naroff, chief economist at Naroff Economics in Holland, Pennsylvania.

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Asian tech shares track Nasdaq gains as inflation fears recede

Asian tech and growth stocks rallied on Friday, following Wall Street's overnight lead, as investors tempered fears about hot inflation and the prospects of an early tapering of stimulus by the Federal Reserve.

Japan's tech-heavy Nikkei (.N225) and Taiwan's stock index (.TWII) stood out in the region - where equities were broadly mixed - with gains of 0.8% and 1.2% respectively.

Chinese blue chips (.CSI) lost 0.8%, however, weighed by financials and capping broader gains in the region.

Overall, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) added 0.1%, putting it on track for a 1.9% weekly gain. The gauge's tech components (.MIAPJIT00PUS) jumped 0.6% over the day.

Futures pointed to a further 0.3% rise for the S&P 500 (.SPX) later in the global day, following a more than 1% rise on Thursday.

Growth stocks led those gains as Treasury yields declined following a weaker-than-expected U.S. business activity reading. A pullback in commodity prices, particularly oil, also undermined the thesis for too-hot inflation.

The Nasdaq Composite (.IXIC) was the big winner, soaring 1.8%, while the Dow Jones Industrial Average (.DJI) posted a 0.6% gain.

European stocks looked set to rally at Friday's open, with Euro Stoxx 50 futures up 0.4% and FTSE futures rising 0.2%.

"It's still a market trying to work out where inflation is going to go, and what that might mean for Fed policy somewhere down the line," said Kyle Rodda, a market analyst at IG in Melbourne.

The Philadelphia Federal Reserve Bank said its business activity index fell to 31.5 from 50.2 in April, its highest pace in nearly half a century, casting doubt on how fast the economy can continue to heat up.

Other data on Thursday showed the number of Americans filing new claims for unemployment benefits dropped further below 500,000 last week, but jobless rolls swelled in early May, which could temper expectations for an acceleration in employment growth this month. read more

The yield on benchmark 10-year Treasury notes held Thursday's more than 4 basis-point decline to hover around 1.632% in Asia.

Oil prices recovered slightly after steep drops on Thursday, when diplomats said progress was made toward a deal to lift U.S. sanctions on Iran. read more

Brent crude was 0.3% higher at $65.27 a barrel after slumping 2.3%. West Texas Intermediate crude added 0.4% to $62.21 a barrel following a 2.1% tumble.

In the foreign exchange market, the dollar was languishing near multi-month lows following its steepest slide in about two weeks on Thursday as bets of early U.S. rate hikes pared back.

The dollar index , which measures the greenback against six major peers, was at 89.755, little changed after the previous session's 0.4% slump. For the week, it has tumbled 0.7%.

In cryptocurrencies, bitcoin traded just below $40,000 on Friday following a wild ride this week that saw it plunge as low as $30,066 on Wednesday for the first time since late January. read more

The digital token rebounded Thursday after prominent backers such as Ark Invest's (ARKK.P) Cathie Wood and Tesla's (TSLA.O) Elon Musk indicated their support.

Wednesday's brutal selloff was triggered by worries over tighter regulation in China and unease about the extent of leveraged positions among investors.

No. 2 cryptocurrency ether was trading around $2,900 following a drop to as low as $1,850 on Wednesday.

For the week, bitcoin is down 14%, adding to the previous period's 20% slide, while ether has fallen 23%.

Our Standards: The Thomson Reuters Trust Principles.

EXCLUSIVE Huawei to expand smart car partnership with Changan to chips -sources

China's Huawei Technologies (HWT.UL) is expanding its smart car partnership with state-owned Chongqing Changan Automobile Co Ltd (000625.SZ) to include the design and development of auto-use semiconductors, four sources with knowledge of the matter said.

The two companies, which unveiled their smart car tie-up in November, have been working together informally on chips for the last few months, two of the sources said. A third source said they might soon form a joint venture for chip development.

Shares in Changan rocketed higher on the news, up 9% in afternoon trade compared to a 4% decline earlier in the day.

Huawei has pivoted to electric vehicles after its global smartphone business was hammered by U.S. sanctions. The previous Trump administration labelled the company a threat to U.S. national security - a charge it denies.

In addition to the deal with Changan to develop smart cars under a joint as-yet-unnamed brand, Huawei is also planning EVs under its own marque and is in talks to take control of a small domestic automaker's EV unit, sources have said. read more

Huawei's new chip partnership with Changan would come amidst a global semiconductor shortage that has hit automakers particularly hard.

It would also represent a significant expansion for Huawei's chip business after U.S. sanctions meant it lost access to the underlying chip design software needed for more advanced chips used in smartphones.

The sources declined to be identified as they were not authorised to speak to media.

Changan did not respond to a request to comment. Huawei said it defers to automakers in public announcements regarding their tie-ups. Battery maker CATL (300750.SZ), which is also part of the smart car partnership, also did not respond to a request for comment.

Changan, which has partnerships with Ford Motor Co (F.N) and Mazda Motor (7261.T) in addition to making its own cars, has been working on developing its own chips but has not made much progress, two sources said.

Huawei and Changan's current smart car partnership calls for the tech giant to be in charge of the vehicle's operating system and cabin technologies while the automaker would be in charge of vehicle design and engineering.

Two sources said the partnership would build cars that would target the mid to high-end market, competing with Tesla Inc (TSLA.O) and Nio Inc (NIO.N).

The business will be housed in an old venture with Nio that is no longer active and has been renamed Avatar, they added.

The companies aim to begin sales early next year, said one source. Another source added that Avatar will open an office in Shanghai and has started hiring staff.

Our Standards: The Thomson Reuters Trust Principles.

Apollo co-founder Josh Harris to step down from private equity firm

Apollo Global Management Inc (APO.N) said on Thursday co-founder Joshua Harris has decided to step down from his day-to-day role, the latest in a series of governance changes at the private equity firm.

Apollo said Harris will leave his role when the $11 billion all-stock merger with annuities provider Athene Holding Ltd (ATH.N) closes in the first quarter of next year. Harris, 56, will retain his seat on Apollo's board and executive committee, the firm said.

The move comes after Apollo co-founder Leon Black stepped down from all his executive roles at the private-equity firm earlier this year, in the wake of a law firm report that revealed he had paid late financier and convicted sex offender Jeffrey Epstein $158 million for advice on tax and estate planning and related services between 2012 and 2017. The review had cleared Black of any wrongdoing.

In March, Black, who co-founded Apollo 31 years ago alongside Harris and Marc Rowan, stepped down as the company's chairman, with Jay Clayton, former U.S. Securities and Exchange Commission chief, taking over as non-executive chairman. Earlier in January, Black relinquished his post as chief executive officer to Rowan after the report was published.

In elevating Rowan to become CEO, Apollo passed over Harris, who had been widely expected to take over the top job from Black.

Margaret Brown, a member of the board of the California Public Employees' Retirement System (CalPERS), said she will take a wait-and-see approach on how Rowan fares as CEO.

"What I’m looking for is stability, honesty and ethics in that leadership," Brown said.

Analysts on Thursday said Harris' departure from his day-to-day responsibilities was expected given Rowan's promotion and will not impact Apollo's fundraising of its flagship funds.

"The announcement seems orderly and, based on our conversations with investors, inevitable given the recent promotion of Mr. Marc Rowan to the CEO role," Citi analysts wrote in a note. "Beyond the headline nature of the update, we do not think it will have an impact on PE Fund IX or the upcoming Fund X capital raise."

Apollo said Harris will turn his attention to his investing business, his family's foundation and HBSE, a sports and entertainment company he co-founded with David Blitzer, a Blackstone Group Inc (BX.N) senior managing director. HBSE's brands include National Hockey League's New Jersey Devils and the National Basketball Association's Philadelphia 76ers.

"After nearly 31 years at Apollo, it is time for me to start the next chapter of my career, where I will focus full-time on the platforms I've created outside of the firm," Harris said in a statement on Thursday.

Apollo's shares were trading at $56.48, down 0.89% as of 3PM ET on Thursday.

Our Standards: The Thomson Reuters Trust Principles.

Tesla cars barred from some China government compounds - sources

Staff at some Chinese government offices have been told not to park their Tesla Inc (TSLA.O) cars inside government compounds due to security concerns over cameras installed on the vehicles, two people with knowledge of the matter said.

The people said officials of at least two government agencies in Beijing and Shanghai have been instructed verbally by supervisors not to park their Tesla electric cars at work. It wasn't clear how many cars were affected, the people said, declining to be identified due to the sensitivity of the matter.

It wasn't immediately clear whether all government offices in Beijing have imposed such restrictions, nor whether the measure was a formal government injunction or a step adopted by agency officials. It was also unclear whether curbs applied to state agencies nationwide.

While sensors and cameras that can assist driving feature in many automakers' vehicles, the people with knowledge of the matter said the restriction currently only applies to Tesla cars. In March, Tesla vehicles were banned from entering some military complexes in China, sources told Reuters then, citing security concerns over vehicle cameras.

Neither the State Council Information Office (SCIO), which handles media requests for China's government, nor Tesla China officials immediately responded to requests for comment.

The restriction provides a fresh indication of China's continued wariness of the U.S. electric carmaker amid tensions with Washington.

Facing greater scrutiny after safety and highly publicised customer service complaints in China, Tesla is boosting its engagement with mainland regulators and beefing up its government relations team, industry sources told Reuters previously.

China, the world's biggest car market, is the electric car maker's second-biggest market, accounting for about 30% of its sales. Tesla now makes electric Model 3 sedans and Model Y sport-utility vehicles in a Shanghai plant.

Automakers like Tesla have been equipping more vehicles with cameras and sensors that capture images of a car's surroundings. Control of how those images are used and where they are sent and stored is a fast-emerging challenge for the industry and regulators around the world.

Tesla cars have several external cameras to assist drivers with parking, changing lanes and other features. Chief Executive Elon Musk has commented frequently on the value of the data that Tesla vehicles capture which can be used to develop autonomous driving.

Days after the March ban on Tesla cars in military complexes, Musk appeared by video at a high-level Chinese forum, saying that if Tesla used cars to spy in China or anywhere, it would be shut down.

Tesla said it would open a data centre in China and is developing a data platform for car owners in China.

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McDonald's is sued for $10 billion for alleged bias against Black-owned media

McDonald's Corp (MCD.N) was sued on Thursday for at least $10 billion by two companies owned by media entrepreneur Byron Allen, who accused the fast-food chain of racial discrimination for not advertising enough with Black-owned media outlets.

The complaint filed in Los Angeles County Superior Court said McDonald's violated federal and state civil rights laws through its "racial animus and racial stereotyping" in allocating ad dollars.

According to the complaint, Chicago-based McDonald's has refused to advertise with Allen's Entertainment Studios Networks, which owns several lifestyle channels, or his Weather Group, which owns The Weather Channel.

The complaint said Blacks comprise about 40% of McDonald's customers, but the company devoted less than $5 million of its $1.6 billion U.S. ad budget in 2019 to Black-owned media.

"McDonald's, like much of corporate America these days, publicly touts its commitment to diversity and inclusion, but this is nothing more than empty rhetoric," the complaint said.

Allen sued on the same day McDonald's said it would boost its national ad spending with Black-owned media to 5% from 2% by 2024, and also spend more on Hispanic-, Asian-American, women- and LGBTQ-owned platforms.

"We have doubled down on our relationships with diverse-owned partners," McDonald's said in a statement. It said it will "review and respond accordingly" to Allen's lawsuit.

In April, General Motors Corp (GM.N) pledged to advertise more with Black-owned media, after Allen and other entrepreneurs took out full-page newspaper ads accusing the automaker of ignoring those media.

A former stand-up comic and co-host of the NBC reality TV show "Real People," Allen also sued Comcast Corp (CMCSA.O) for $20 billion in 2015 over its refusal to carry his channels.

He settled in June, three months after the U.S. Supreme Court sided with Comcast in setting a high burden for Allen to prove he was discriminated against.

Our Standards: The Thomson Reuters Trust Principles.

Rwanda: Hotels, Suppliers Count Losses as CHOGM is Suspended

The postponement of the Commonwealth Heads of Government Meeting (Chogm 2021) has cast a dark shadow on Rwanda's ailing economy, which has been severely hit by the coronavirus pandemic.

The country's service sector, particularly retail, leisure and hospitality and conference tourism, which collectively account for most jobs in the country, is the worst-hit.

Although Rwanda was ready and will still host the meeting on a yet to be announced later date, local businesses are struggling to stay afloat after spending resources on upgrading their facilities and hiring staff ahead of the meeting.

Up to 10,000 delegates from all the 53 Commonwealth member countries were expected to attend the event and at least $780 million in revenues was expected to be generated from hosting the meeting and earnings from visitors' expenditure.

"The Chogm postponement was a major setback for us because we have invested in preparing for the meeting and underwent and passed constant inspections in the past few months," Eugene Munyaneza, Ubumwe Grand Hotel general manager, told The EastAfrican.

Ubumwe Grand Hotel was booked to host all the Foreign Affairs Ministers in attendance. Mr Munyaneza says the hotel has resorted to hosting local guests, conferences and meetings for recovery.

Hotel Gorillas had taken out a loan to upgrade its facilities. "We had already placed orders and started preparations...," said Ines Gikundiro, a manager.

The Chogm postponement also poses challenges for the country's Meetings, Incentives, Conventions and Exhibitions (MICE) strategy which has been severely hit by the pandemic. The country was on track to position itself as a MICE hub after being ranked Africa's second most popular conference destination by the International Congress and Convention, based on the number of association meetings taking place regularly in 2019.

The Covid-19 pandemic has almost wiped out all the revenues from conference tourism from a high of $56 million in 2019, to almost zero after the country went into lockdown in March 2020, resulting in cancellation of over 50 percent of the planned conferences. As a result, while revenue figures are yet to be released by Rwanda Convention Bureau, in 2020, the country missed its $80 million revenue target from MICE. The country was scheduled to host at least 147 events between March and April 2020, but it has foregone at least $10 million in conference revenues.

Although since July 1, 2020, the country gradually lifted restrictions allowing conferences to take place to support recovery of the tourism and hospitality sectors, some restrictions remain, including social distancing and mandatory testing.

But the sector is beginning to recover after Rwanda successfully hosted a national cycling event, Tour du Rwanda, and is also hosting the Basketball Africa League (BAL) which began on May 16. BAL is a partnership between the US's National Basketball Association (NBA) and the International Basketball Federation.-East African.

Nigerian Sovereign Investment Authority Records 343 Percent Increase in Income

Council welcomes Digital Switch Over starting in Lagos, Kano and Rivers states.

The Nigerian Sovereign Investment Authority (NSIA) has recorded a 343 per cent growth in Total Comprehensive Income totalling N160.06 billion in 2020 compared to N36.15 billion in the previous year and 33 per cent growth in Net Assets, rising up to N772.75 billion from the previous N579.54 billion.

This was one of the major highlights in the NSIA report presented at today's National Economic Council (NEC) meeting chaired by Vice President Yemi Osinbajo.

At today's meeting of the council, which comprises the 36 state governors, the Federal Capital Territory minister and the Governor of the Central Bank of Nigeria (CBN), besides other federal government officials, a session was devoted to holding the AGM of the NSIA where reports and financial statements, including the audit were presented.

In particular, the Managing Director/Chief Executive Officer of the NSIA, Uche Orji, submitted that the NSIA achieved a core income of N109 billion compared to N33.07 billion in 2019, excluding forex gains of N51 billion in 2020 and N1.29 billion in 2019.

The NSIA presentation noted that despite the challenges of COVID-19, it had a favourable year owing to strong performance from its investments in international capital markets, improved contribution from associates, as well as exchange rate gains from foreign currency positions.

In response to COVID-19, the NSIA partnered with Global Citizen, a not-for-profit group, to form the Nigeria Solidarity Support Fund (NSSF), acquired and distributed oxygen concentrators to 21 teaching hospitals as part of its Corporate Social Responsibility; in addition to staffing support to the Presidential Taskforce on COVID-19 towards combatting the pandemic.

Other major milestones reached by the NSIA were recorded across domestic infrastructure projects, specifically in roads, agriculture, healthcare, technology and gas industrialization.

NEC also received a presentation on the Digital Switch Over (DSO) by the Minister of Information and Culture, Lai Mohammed. He stated that it was the International Telecommunications Union, ITU, that decided on member states switching off analogue television transmission to 'go digital'.

The DSO will be taking off first in Lagos, Kano and Rivers States, he stated.

According to him, the National Broadcasting Commission (NBC) and the DSO Ministerial Task Force are tasked with ensuring that Nigeria 'digitizes' and develops a public information and awareness campaign to inform citizens about DSO/FreeTV.

The minister disclosed that the switch-over has a revenue generation potential of N20 billion annually; and that the funds will enable the NBC support and upgrade DSO initiative, as well as fund local producers.

The council also received an update on Nigeria's response to the COVID-19 pandemic by the Director-General of the Nigeria Centre for Disease Control (NCDC), Chikwe Ihekweazu.

According to the DG, NCDC, in the last two months there has been reduction in the number of cases globally, stating that even India has also experienced reduction in its infection rates in the last five days.

He added that in Nigeria, the total number of cases as of May 19, 2021, was 165,809, while the number of cases tested was 2,002,653, with 7,323 active cases. It was also disclosed that discharged cases were now 156,419, while there had been 2,067 deaths.

According to the NCDC boss, the "transmission rate in the country is low," adding that attention is now on tracking the new B1.617.2 variant from India. He said there are only three such cases identified in Nigeria so far.

He added that focus should remain on the protocols to stop the spread of the virus, while the health authorities and agencies will keep an eye on tracking the Indian variant. Governments and leaders in the society are also urged to discourage pandemic fatigue and stick to the COVID-19 safety protocols.

Earlier, the Minister of State for Budget and National Planning, Clem Agba, gave the council the monthly update on the under-listed accounts as follows:

1. EXCESS CRUDE ACCOUNT (ECA)

Balance as at 18th May 2021 stands at

$72,413,574.70

2. STABILIZATION ACCOUNT

Balance as at 18th May, 2021 stands at

N24,741,213,941.88

3. DEVELOPMENT OF NATURAL RESOURCES ACCOUNT

Balance as at 20th May, 2021 stands at

N23,650,579,140.23

On the Budget Support Facility, state governors restated their request to defer the repayment of the loans, which was to have started this month. Ekiti State Governor, Kayode Fayemi, who is also Chairman, Nigeria Governors' Forum, reported interactions with the finance minister and the CBN Governor regarding the matter.

The CBN Governor, Godwin Emefiele, also emphasized the importance of the timely repayment of loans, especially those owed to commercial banks, indicating the challenges inherent in a further delay in payment, including audit concerns. He said the repayment of the commercial loans should resume this month.

In addition, the vice president stated that he will be holding a meeting soon with representatives of the state governors, the finance minister and the CBN governor to resolve the issue raised.- Premium Times.

Tunisia Receives €20-Million Grant From Germany to Support Private Sector

Tunis/Tunisia — Tunisia received a €20 million grant from the German government, through the German Investment for Employment (IFE) on behalf of the German Development Bank (KFW), to support employment in the private sector in the wake of the coronavirus pandemic, said Thursday the Central Bank of Tunisia (BCT).

The latter specified that this grant aims to support private economic operators affected by the COVID-19 pandemic and to preserve jobs.

This fund is intended to finance the interim interest paid or to be paid on the deferrals due on loans contracted before the crisis, the interest subsidy on additional loans and the salary and operating costs related to the crisis.

The grant per beneficiary is capped at the equivalent of €200,000.

The grant agreement was signed on February 9 and 22 by the Ministry of Economy, Finance and Investment Support, the BCT and the IFE.

Under the provisions of the agreement, the BCT in its capacity as the executing agency acting in the name and on behalf of the Tunisian Government, shall manage this fund.

To this end, the BCT issued, on May 19, 2021, a Note to Authorised Intermediaries on the modalities of the use of this grant.-Tunis Afrique Presse.

East Africa: Ethiopia, Sudan Discuss Railway Project in Khartoum

Addis Ababa — Ethiopia and Sudan's joint technical team for the construction of standard gauge railway project discussion took place in Khartoum to evaluate the feasibility study of the project in the presence of railway officials of the two countries. Ethiopian Ministry of Foreign Affairs (MoFA) announced that the joint technical committee for the construction of the Ethio-Sudan railway project discussed on the feasibility study of the project.

Ethiopian Ambassador to Sudan Amb Yibeltal Aemiro, Sudan's Ministry of Transport Deputy Minister Mohamed Bashir and railway officials of the two countries were attending the joint discussion, according to MoFA. In his opening remark at the event, Ambassador Yibeltal stated that Ethiopia and Sudan have historic people to people relations and strong economic and social ties, adding that railway transport would boost the strong and historic relation of the two countries.

In addition, Yibeltal noted the joint railway project will facilitate regional economic cooperation. According to Amb Yibeltal beyond the current temporary problems of the two countries, Ethiopia and Sudan should focus on sustainable and strategic infrastructural and economic sectors for the benefit of the two countries' peoples.

He further noted that the Ethio-Sudan railway project is among the key strategic and sustainable projects of the two countries. Ambassador Yibeltal assured the commitment of the Ethiopian government for the realization of the Ethio-Sudan railway project.Deputy Minister of Sudan's Ministry of Transport, Mohamed Bashir on his part argued that rail transportation is crucial to strengthen and develop economic transaction of the two countries peoples since it transports heavy fright with cheap price.-Ethiopian Herald.

Invest Wisely!

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INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

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

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