Major International Business Headlines Brief::: 22 May 2021

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Major International Business Headlines Brief::: 22 May 2021

 


 

 


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ü  Amazon shuts US construction site as nooses found

ü  Apple v Epic: Tim Cook appeared on the stand in Epic legal row

ü  Leonard Blavatnik named UK's richest person with £23bn fortune

ü  Coronavirus: Spain to lift restrictions for UK and Japanese travellers

ü  UK makes free-trade offer to Australia despite farmers' fears

ü  Car buyers still sceptical about going electric, says Ford boss

ü  SEC approves Nasdaq proposal to allow IPO alternative to raise funds

ü  Fed officials, new data, start lowering expectations for U.S. jobs in May

ü  Analysis: Retail investors learn to love the crypto rollercoaster

ü  EXCLUSIVE Boeing plans new 737 MAX output jump in late-2022, sources say

ü  Bitcoin ends day on the ropes after China clamps down on mining, trading

ü  NYC's pandemic-hit hospitality industry faces labor shortage a year on

ü  White House pares infrastructure proposal to $1.7 trillion, Republicans
balk

ü  Namibia: Oil Driller Applies for Kavango Land

ü  Mozambique: International Energy Agency Says No Future for Mozambique Gas

ü  Ethiopia: GERD Construction Reaches Over 80 Percent Completion

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

 

 

 

 

 

 

 

 


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Amazon shuts US construction site as nooses found

Amazon has shut down construction of a new US warehouse after seven nooses
were found on-site in the last month.

 

Construction has been stopped at the Windsor, Connecticut site until
security measures have been put in place.

 

Amazon said it was "deeply disturbed by the incidents happening".

 

It has offered a $100,000 (£70,589) reward for information on the nooses,
the first of which was discovered on 27 April.

 

The looped rope is synonymous with the extrajudicial hangings, or lynchings,
of mainly black people in the United States in the late 19th and early 20th
Centuries.

 

Amazon spokeswoman Kelly Nantel said: "We continue to be deeply disturbed by
the incidents happening at the construction site in Windsor and have ordered
it's shut down until necessary security measures can be put in place.

 

"Hate, racism or discrimination have no place in our society and are
certainly not tolerated by Amazon - whether at a site under construction
like this one, or at one that we operate."

 

She added the firm was working with the town and Windsor Police Department
on the matter.

 

Windsor Police said in a statement that the first noose was found hanging
from a steel beam within the building on 27 April, before five more ropes
"that could be interpreted as nooses" were found on several different floors
two days later.

 

Construction continued until a seventh was found on Wednesday.

 

The ropes were hung in areas without surveillance. Hundreds of construction
workers employed by a number of different companies were working on the
site, which meant the police have limited information, the statement said.

 

Amazon has increased the reward on offer from $50,000 to $100,000 in recent
days.

 

However, in a press conference, president of the Connecticut chapter for the
National Association for the Advancement of Colored People (NAACP), Scot X
Esdaile, said, he had been disappointed by the response so far.

 

"We've been striving to get on the site, to talk to individuals to make sure
that they were safe. And still, we have not gotten onto the site yet," he
said.

 

"It's imperative ... that we make sure that those individuals are safe and
that they're out of harm's way."

 

The Connecticut state police and agents from the Federal Bureau of
Investigation (FBI) are assisting local police with the investigation.

 

"The implications of a hanging noose anywhere are unacceptable and will
always generate the appropriate investigative response," FBI special agent
David Sunderberg said in a statement to local news outlet WTNH.--BBC

 

 

 

 

Apple v Epic: Tim Cook appeared on the stand in Epic legal row

Apple boss Tim Cook took the witness stand for the first time in his
company's major legal battle with Epic Games over an alleged monopoly.

 

Epic, maker of the hit video game Fortnite, claims Apple's tight control
over iPhone apps hurts competition.

 

During his appearance, Mr Cook argued that keeping control of the App Store
helped keep iPhones secure.

 

He also said he did not know if the App Store made a profit, telling the
court Apple did not break down the figures.

 

Facing questions about the level of profit the App Store generates from the
30% commission it takes on sales, he said: "We don't have a separate profit
and loss statement for the App Store."

 

Instead, he said that he had a "feeling" that it was profitable - but could
not share figures with the court.

 

Mr Cook was being questioned about his oversight of top-level decisions
around the App Store's policies.

 

Judge Yvonne Gonzalez Rogers also questioned Mr Cook, asking about a survey
that showed 39% of developers are dissatisfied with the app store.

 

Mr Cook said he was not familiar with the survey but said there was a
"friction" because Apple rejected 40% of apps weekly.

 

The judge also asked him if he was a gamer, to which he admitted that he was
not.

 

Mr Cook's opposite number in the case - Epic Games chief Tim Sweeney - has
already appeared on the stand in the opening days of the long-running legal
battle.

 

What is the case about?

Two main things are at the centre of the case: the 30% commission Apple
takes on in-app purchases, and the fact that no other app stores are allowed
to exist on the iPhone and iPad to offer an alternative.

 

Epic's Fortnite is one of the most popular games in the world and makes its
money through in-game purchases of character costumes and other digital
items.

 

A 30% cut on millions of such purchases adds up to a lot - but Apple's rules
forbid the company from circumventing its payment methods if a sale is made
in the iPhone app.

 

In August last year, Fortnite offered players a 20% discount if they paid
Epic Games directly, in direct violation of Apple's rules.

 

Apple quickly removed the app from its store - as did Google, which enforces
a similar policy.

 

Epic had clearly expected that to happen. The firm immediately launched a PR
blitz to mobilise its fanbase and win support, painting Apple as a
dominating force suppressing freedom of choice.

 

Within hours, Epic lodged prepared legal complaints in the US against both
Apple and Google.

 

But the debate goes beyond the 30% cut, to wider questions about
competitiveness. Epic has made no secret of the fact that it would like to
run its own app stores on both iOS and Android, avoiding Apple's and
Google's payment and delivery systems entirely.

 

This was Tim Cook's first time giving evidence at trial.

 

There's no video footage of the court case but journalists can listen in to
a terrible audio line that sounds like the trial is taking place under
water. It's therefore hard to get a feel for the atmosphere of court.

 

Still, it's pretty clear that Mr Cook is having a tough day.

 

I'm used to hearing him asked questions in Congress. Usually he has a
relaxed air - it takes a lot to get him flustered.

 

However a cross examination in court is a very different beast.

 

Grilled by an expert legal team, Mr Cook appeared more evasive.

 

He was asked, for example, how much profit Apple makes from its App Store.
He replied that he didn't know. Considering the App Store is a massive money
spinner for Apple, that is a surprise.

 

Google also pays a huge amount to Apple to have its search preloaded onto
iPhones. Asked about this deal (believed to be worth around $10bn, or £7bn)
Mr Cook didn't seem to know much about it, unable - or unwilling - to
confirm how much this contract was worth.

 

Mr Cook may be reluctant to unveil commercially sensitive data. However, he
came across as vague on detail. And that's not a good look when you're
giving evidence in court.

 

Most experts believe this is Apple's to lose but anti-trust cases are
notoriously difficult to predict.

 

And we're unlikely to get a judgement soon - there is a lot of evidence the
judge has to wade through.

 

What has happened so far?

The legal cases against Apple and Google are separate, and Apple has been
the first in court.

 

Apple is accused of running a monopoly, subjecting all apps to a cumbersome
review process, and rejecting them for all sorts of reasons. Epic contends
that is unfair, while Apple says it protects customers from dodgy apps.

 

Much of the early debate has been over definitions, with Epic arguing that
Fortnite is more than a game, but rather a "metaverse" within which all
sorts of experiences - including concerts and film screenings - are held.

 

But outside of the wrangling over technical definitions, there have also
been some significant revelations.

 

The fact that Epic's model for its app store is not yet profitable is one of
Apple's arguments against allowing an open system.

 

Documents have revealed that Epic has made heavy losses with game giveaways,
which cost it millions of dollars. However, in return it has gained millions
of new users for its PC gaming platform - the Epic Games store - which Epic
says was always its strategy.

 

It has also emerged that Apple has debated lowering the 30% cut it takes in
response to competition, with App Store chief Phil Schiller writing to Steve
Jobs as long ago as 2011.

 

And one particularly memorable exchange was born out of a debate over adult
content.

 

'It's just a banana ma'am'

Apple had highlighted that Epic's store hosted a store-within-a-store -
Itch.io - which sells adult content. Apple gave this as an example of why it
did not want third-party stores on its platforms.

 

Later, while showing images of Fortnite, Apple's legal team referred to
Peely, a Fortnite character who is a banana.

 

It showed him in a tuxedo, remarking: "We thought it better to go with the
suit than the naked banana, since we are in federal court this morning."

 

On cross-examination, Epic's attorney wanted to put to bed the "implication"
that a naked banana might be inappropriate, resulting in Epic's marketing
boss informing the court: "It's just a banana, ma'am."-BBC

 

 

 

Leonard Blavatnik named UK's richest person with £23bn fortune

Sir Leonard Blavatnik has topped the latest Sunday Times Rich List, having
seen his fortune swell to £23bn.

 

The Ukranian-born oil and media magnate, who also owns Warner Music, saw his
wealth surge by £7.2bn during the year.

 

He took the title from Sir James Dyson, whose wealth rose by only £100m to
£16.3bn, leaving him in fourth place.

 

There are now a record 171 billionaires in UK, with their wealth rising
21.7% during the pandemic to £597.2bn.

 

Mr Blavatnik made his fortune in Russia where he owned stakes worth billions
of pounds in companies selling metal and oil. He is a notoriously-private
man, and holds both US and UK citizenship.

 

His wealth was boosted by the proceeds of a £1.37bn stake in Warner, which
he received when it listed on the stock market in the US last year.

 

"The fact many of the super-rich grew so much wealthier at a time when
thousands of us have buried loved ones and millions of us worried for our
livelihoods makes this a very unsettling boom," said Robert Watts, compiler
of the annual index of the country's wealthiest residents.

 

"The global pandemic created lucrative opportunities for many online
retailers, social networking apps and computer games tycoons."

 

Growing fortunes

Property investor brothers David and Simon Reuben were in second place after
their fortune grew by £5.46bn to £21.46bn.

 

Sri and Gopi Hinduja, who run the Mumbai-based conglomerate Hinduja Group,
took third spot after their wealth rose by £1bn.

 

Steel magnate Lakshmi Mittal, in fifth place, saw the biggest rise in wealth
of any billionaire in the past 12 months, with gains of around £7.9bn,
largely based on the rise in value of his ArcelorMittal steel-making
business.

 

Chelsea owner Roman Abramovich was in eighth position after his fortune rose
by £1.9bn to £12.1bn.

 

The total of 171 billionaires in the latest Rich List is higher than the
previous record of 151 set in 2019.

 

The study found the richest 250 people in the UK this year are worth
£658.1bn, up from £565.7bn last year, a rise of 16.3%.

 

There are also more entrepreneurs behind unicorns - start-up businesses with
a valuation higher than $1bn - to be found in the Rich List than before.

 

They include Farfetch, the luxury online fashion retailer, whose founder
Jose Neves is a new entry at 82 in this year's Rich List with a £2bn
fortune.

 

Alex Chesterman, founder of online car dealing service Cazoo makes his first
appearance at 215th with an estimated worth of £750m.

 

"The valuations of many rich listers' companies have soared over the past
year - especially the pack of tech businesses known as unicorns," said Mr
Watts.

 

"I worry about the strength of the foundations. No-one wants to see a re-run
of the dotcom boom-and-bust of 20 years ago."

 

Charitable donations

The Sunday Times does not just track how much money the mega-wealthy have
accumulated each year. It also monitors how much of their fortune they give
to charity.

 

Manchester United striker Marcus Rashford became the youngest person ever to
top the paper's giving list, which is calculated by ranking the amount
donated or raised relative to a person's overall wealth.

 

The 23-year old was behind a high-profile campaign calling for children who
are eligible for free school meals to be fed during coronavirus lockdowns.
He was estimated to have raised £20m to support the scheme, more than the
£16m he is thought to be worth.-BBC

 

 

 

Coronavirus: Spain to lift restrictions for UK and Japanese travellers

Spain has said it is officially lifting restrictions for UK travellers from
Monday, when a decree takes effect.

 

The government says the UK and Japan will be on a list of countries whose
residents are able to avoid restrictions on non-essential travel to the EU.
They will not need a PCR test.

 

UK tourists going to Spain will still have to quarantine on their return.

 

Meanwhile, Germany announced that anyone arriving from the UK would have to
quarantine for two weeks.

 

The German public health institute said the decision was related to the
Indian Covid-19 variant, which is responsible for the majority of new cases
in parts of England and is believed to spread more quickly.

 

The UK government still strongly advises against non-essential travel to
most other EU countries, including Germany and Spain.

 

Earlier, Prime Minister Boris Johnson's spokesman said: "We've been clear
people shouldn't be travelling to amber list [nations] for the purpose of
holidays. Our advice hasn't changed. We will keep the green list under
review
 and will add countries where possible."

 

Portugal is the main destination on the UK's short "green" list of countries
that are free of the quarantine requirement. Under the UK's traffic light
system, people are advised to avoid amber and red countries, where the Covid
risk is greater.

 

The EU is currently deciding on an expanded "white list" of countries whose
citizens can enter the EU freely.

 

Only seven, with very low Covid infection rates, are on the list now. Those
countries are: Australia, Israel, New Zealand, Rwanda, Singapore, South
Korea and Thailand.

 

The BBC has been told a final EU decision on expanding the list has been
delayed for another two weeks.

 

Tourism in Portugal and Spain relies heavily on British visitors in the
summer, and travellers from England, Scotland and Wales began flying to
Portugal last Monday.

 

Spain will allow people from other non-EU countries who have been vaccinated
against Covid-19 to enter the country from 7 June, Prime Minister Pedro
Sánchez said. They will include US citizens.

 

Mr Sánchez said the lifting of these curbs should allow Spain's summer
tourism to reach 30-40% of 2019 levels.

 

The EU has decided that visitors should be allowed to come from countries
with an incidence rate of below 75 cases per 100,000 people.

 

Under those terms, UK travellers would be eligible but there are ongoing
concerns about the Indian Covid-19 variant.

 

Some EU countries are hesitating over the UK, as they want to see how the
surge of British cases related to the Indian variant plays out.

 

EU envoys have also recommended that non-essential travel should be allowed
from outside the EU for people who have been fully vaccinated. However, they
say it should be up to member states to decide on measures they impose, such
as Covid tests or quarantine.

 

'Round in circles'

On Thursday EU politicians agreed on the technicalities of an EU Digital
Covid Certificate - essentially a health passport for EU citizens to travel
inside the 27-nation bloc. It will show a traveller's vaccination record.

 

The EU has been racing to get the certificate ready for summer tourism, as
countries emerging from months of lockdown are desperate to revive their
hospitality industries.

 

The EU certificate is now "well on track to be ready end of June, as
planned," an official statement said.

 

Currently UK citizens travelling to amber list countries - that is, most of
the EU - can face unexpected border obstacles, despite completing the
formalities.

 

Lis Nixon from Oxfordshire told the BBC on Thursday that she was turned away
at the Iberia desk at Heathrow, despite having an urgent family reason to
visit Spain. Her son, daughter-in-law and grandson live in Estella, Spain,
and needed her there, she said.

 

"The woman at the desk said I needed authorisation from the Spanish
consulate. There's nothing in all of the government advice that says I need
to do that. When I try phoning the consulate, it says the mailbox is full.
The phone number says you need to book an appointment, so you just go round
in circles.

 

"So, I couldn't get through this morning. The woman at the airport said
they'd been only having this problem with UK passport holders," she
said.-.-BBC

 

 

 

UK makes free-trade offer to Australia despite farmers' fears

The UK has offered trade deal terms to Australia under which both countries
would phase out taxes on imports over 15 years.

 

The cabinet was reportedly split on what terms to propose, amid concerns UK
beef and lamb farmers could be undercut by larger Australian producers.

 

But the dispute was apparently resolved after Boris Johnson pushed for
unity.

 

International Trade Secretary Liz Truss formally made the UK offer to her
Australian counterpart on Friday.

 

If accepted, it would also lead to quotas - limits - on tax-free trade
between the two countries to be phased out.

 

The National Farmers' Union (NFU) has warned that freeing up the
UK-Australian trade in meat will lead to hundreds of British cow and sheep
breeders going out of business.

 

Ministers are keen to strike as many trade deals as possible following
Brexit, and Ms Truss wants one in place with Australia by the time the UK
hosts the G7 summit - of leading economies - in June.

 

But she had reportedly been at odds with Environment Secretary George
Eustice over the possible impact on farmers of removing import taxes, called
tariffs, that are normally paid to the government.

 

With these differences seemingly resolved at a Downing Street meeting
chaired by the prime minister on Thursday, Ms Truss put the UK's terms for a
deal to Australian counterpart Dan Tehan at an online meeting on Friday.

 

Speaking on a visit to Portsmouth, Mr Johnson said: "We are certainly
looking at doing free trade deals around the world.

 

"They present a fantastic opportunity for our farmers, for businesses of all
kinds, for our manufacturers. We should see these new openings not as
threats but as opportunities."

 

Mr Tehan said he was "confident" of reaching an agreement with the UK by
early June, having had "very positive discussions" with Ms Truss, the
news.com.au website reported.

 

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, metals, wine and machines form the biggest goods exports from
Australia to the UK, while Australia's main UK imports are cars, medicines
and alcoholic drinks.

 

Trade in meat between the two countries is small, with 0.15% of all
Australian beef exports going to the UK and 14% of sheep meat imports to the
UK coming from Australia.

 

NFU president Minette Batters said removing tariffs on these products would
"have a massive impact" on British farms, which would be unable to compete,
in terms of scale, with Australia's vast cattle and sheep stations.

 

She added: "We continue to maintain that a tariff-free trade deal with
Australia will jeopardise our own farming industry and will cause the demise
of many, many beef and sheep farms throughout the UK. This is true whether
tariffs are dropped immediately or in 15 years' time."

 

'Distinct advantages'

The Scottish and Welsh governments have both urged Mr Johnson to ensure UK
farmers are not left exposed.

 

And Northern Ireland's agriculture minister, Edwin Poots, said he was
"strongly opposed" to ending tariffs and quotas.

 

But Conservative MP Neil Parish, chairman of the Commons Environment, Food
and Rural Affairs Committee, said UK farmers could succeed in the beef
market by exporting more "higher-end" cuts, such as sirloin, to Australia.

 

A Department for International Trade spokesperson said: "Any deal we sign
with Australia will include protections for the agriculture industry and
will not undercut UK farmers or compromise our high standards.

 

"Typically, any tariff liberalisation is staged over time, with safeguards
built in. We will continue to work with the industry, keeping them involved
throughout the process and helping it capture the full benefits of
trade."--BBC

 

 

 

Car buyers still sceptical about going electric, says Ford boss

Consumers are still sceptical about electric cars and switching from petrol
and diesel remains "a real challenge", the boss of Ford UK has told the BBC.

 

Lisa Brankin said more government support for the electric car market would
be needed ahead of a proposed ban on new petrol and diesel sales in 2030.

 

Research from energy regulator Ofgem suggests 6.5 million households plan to
buy electric cars by 2030.

 

But the number of electric vehicles (EVs) currently in use remains low.

 

Research from the Society of Motor Manufacturers and Traders (SMMT) found
EVs account for just over 1% of the 35 million vehicles on UK roads.

 

However, numbers are increasing, with sales of battery-powered vehicles more
than doubling last year while the number of plug-in hybrids also grew by
more than a third.

 

Customer concerns

But Ms Brankin, managing director at Ford of Britain and Ireland, told Radio
5 Live's Wake Up to Money programme many customers were sceptical about
buying an electric vehicle. The carmaker is still the leading manufacturer
in the UK in terms of vehicle sales, according to 2020 figures from
Statista.

 

"We did a survey looking at customer attitudes and we saw that just over 10%
of customers were actively considering a battery electric vehicle as their
next purchase," Ms Brankin said.

 

"Most other people were still concerned about a number of things - range,
the charging infrastructure, the lack of information available to customers
and obviously the price as well.

 

On the cost of electric vehicles, she said: "We do recognise that that is an
issue and that's why we've been calling on government to continue to support
the whole range of battery electric vehicles.

 

The government's goal to phase out vehicles which generate tailpipe
emissions is part of a wider plan to make the UK carbon neutral by 2050.

 

The RAC said in May the UK's charging network would need to grow
"exponentially" to cope as electric vehicle sales surged.

 

Sales have risen rapidly, partly due to strict new emissions rules in the EU
which have forced manufacturers to invest billions in new zero-emission
models.

 

A report from the Public Accounts Committee released this month warned the
government had no plan to meet the "huge challenge" of persuading motorists
to switch to electric vehicles by 2030. The same report said only 13
electric car models on sale in the UK at the moment cost less than £30,000.

 

Ms Brankin said the company wanted to see a "comprehensive plan" from the
government for the switch to electric vehicles "that involves all
stakeholders and not just car manufacturers."

 

The government has said it is investing £2.8bn to help the car industry and
drivers make the switch to electric and the added EV costs will fall as
production grows around the world.-BBC

 

 

 

 

SEC approves Nasdaq proposal to allow IPO alternative to raise funds

The U.S. Securities and Exchange Commission (SEC) has approved a proposal by
exchange operator Nasdaq Inc (NDAQ.O) to allow companies to raise capital
through direct listings.

 

In a filing dated May 19, the SEC said Nasdaq's proposed rule change was
consistent with the regulator's rules and regulations and could be
beneficial to investors as an alternative to a traditional initial public
offering.

 

The move is a big breakthrough for the exchange operator that has been
pushing for an alternative for companies to raise money.

 

Reuters had reported in August that Nasdaq had filed with the SEC to change
its rules to enable companies that debut on the stock market through a
direct listing to raise capital.

 

The latest rules will widen the options available to private companies that
are looking to go public, but are wary of the role played by investment
banks in the IPO process.

 

Prominent venture capitalists like Bill Gurley have often criticized
investment banks, which for decades have organized IPOs, for underpricing
the offerings to help their clients reap large gains when the stock begins
trading on the first day.

 

The new IPO alternative could also potentially attract companies that are
currently looking to go public via deals with special purpose acquisition
companies (SPACs), given the recent slowdown in blank-check dealmaking due
to a cooling off in investor appetite and tighter regulatory scrutiny around
SPACs.

 

In December last year, the SEC had approved a proposal by the New York Stock
Exchange to let companies raise capital through direct listings. Prior to
that ruling, the SEC allowed direct listings for companies that did not
raise capital in the process. read more

 

In 2018, music streaming business Spotify Technology SA (SPOT.N) was the
first major company to go public through the direct listing route.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

 

Fed officials, new data, start lowering expectations for U.S. jobs in May

Federal Reserve officials and new Dallas Fed data have begun lowering
expectations for May jobs growth in the United States as business hiring
plans continue to outrun the supply of people able or willing to work.

 

Dallas Federal Reserve president Robert Kaplan said Friday that hiring
difficulties have continued through May, and will likely lead to another
weak jobs report following the lower-than-expected 266,000 positions added
in April.

 

A survey published by the Dallas Fed earlier in the day, meant to provide a
mid-month check on national employment trends, pointed to weakening job
growth as well.

 

That has been attributed to a number of factors including ongoing
unemployment benefit payments and a lack of child care, and “these
structural issues, which we saw in the report for April...all those tensions
are not going to go away" immediately, Kaplan said at a Dallas Fed
conference on technology. "We think you are going to see another odd or
unusual report...Businesses are telling us they got plenty of demand but
they cannot find workers either skilled or unskilled."

 

Fed officials had hoped to see a "string" of months in which a million or
more new jobs were added to U.S. payrolls, helping the country quickly claw
back the 8.2 million positions still missing from before the pandemic.

 

St. Louis Fed president James Bullard earlier this week however called that
figure "hyped up," and said a "more realistic" expectation was for perhaps
half a million jobs a month.

 

The comments highlight a growing dilemma at the Fed as it wrestles over how
long to keep emergency levels of economic support in place as the pandemic
ebbs and the economy revs up for what may be the strongest year of economic
growth since the early 1980s.

 

Philadelphia Fed President Patrick Harker on Friday became the second Fed
official, along with Kaplan, to urge a faster start to talks over when and
how quickly to reduce the central bank's $120 billion in monthly bond
purchases.

 

"It is something that, in my mind, we should start to have a conversation
about sooner rather than later," Harker said at a virtual event organized by
the Washington Post.

 

Atlanta Fed president Raphael Bostic and Richmond Fed president Thomas
Barkin, speaking at the same event with Kaplan, both stuck to their
positions that more hiring needs to take place before they'd be ready to
discuss a bond purchase "taper."

 

"Right now we are not in a position where that’s in play for moves,” Bostic
said, a view that is currently a near consensus at the Fed, even as some
begin to warn of a possibly overheating economy.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Analysis: Retail investors learn to love the crypto rollercoaster

When Brjánn Bettencourt rolled out of bed on Wednesday morning to find the
assets in his cryptocurrency portfolio slammed in their biggest selloff in
years, he knew exactly what to do: buy more.

 

"Investing in crypto is not for the faint of heart," said Bettencourt, a
32-year-old photographer in Toronto who has owned bitcoin and ether over the
last year-and-a-half to complement his stock portfolio. "I'm looking at this
as a serious long-term investment."

 

This week, cryptocurrencies were buffeted by factors ranging from critical
tweets by Tesla Inc (TSLA.O) CEO Elon Musk to governmental controls in
China. The price of bitcoin, the world’s biggest cryptocurrency, tumbled as
much as 30% before retracing some losses. It is down some 40% from its highs
of the year.

 

Leveraged positions in bitcoin and ether futures fell sharply last week,
said Vanda Research, which tracks retail trades. This indicates that some
retail traders probably have folded their tents.

 

"(The) crypto bubble has started to unravel and data from different
exchanges suggest that retail investors are capitulating," Vanda researchers
said.

 

But other retail investors have been happy to ride the turbulence out or
trade around it.

 

"In crypto talk, when stuff like this happens, people say it shakes out all
of the weak hands and the people ... who maybe bought because they saw it on
the news," said Ethan Lou, author of "Once a Bitcoin Miner: Scandal and
Turmoil in the Cryptocurrency Wild West," due this autumn. As retail
investors piled into cryptocurrencies, bitcoin surged around 345% in the
last year, ether soared 1,219% and dogecoin skyrocketed 15,480%, according
to Coinbase data. Crypto-exchange Coinbase (COIN.O) said its more than 56
million users accounted for $335 billion in trading volume in the first
quarter: $120 billion retail and $215 billion institutional. That compares
to $30 billion in total a year earlier, of which $12 billion was retail, the
company said.

 

Retail interest this year also scooped up shares of "meme stocks" such as
GameStop (GME.N), pushing prices through the roof and punishing hedge funds
that had sold the shares short.

 

Some retail investors have embraced the wild price swings in hopes of
catching some of the next big rally. Users on Reddit's popular
WallStreetBets forum have popularized the term “diamond hands”as shorthand
for their willingness to hold an asset through thick and thin.

 

INCREASED SCRUTINY

 

Increased mainstream adoption has drawn the attention of regulators. The
U.S. Treasury Department on Thursday called for new rules that would require
large cryptocurrency transfers to be reported to the Internal Revenue
Service. The Federal Reserve said cryptocurrencies pose risks to financial
stability. read more On Friday, China said it will crack down on bitcoin
mining and trading activities.

 

Cryptocurrencies have been notoriously volatile throughout their history.
Bitcoin plunged 94% in 2011, and dropped 82% between late 2017 and the end
of 2018, causing many investors to back away.

 

Lily Francus, however, has tried to take advantage of the big swings. The
25-year-old, who lives in San Diego and works as a quantitative researcher
at a crypto hedge fund, first traded cryptocurrencies in 2017, but got out
before the price crashed. Then last month she put about 1% of her net worth
into various cryptocurrencies, joining a rally she saw as partly fueled by
social media hype.

 

She liquidated her ether and cut her bitcoin position when Musk hosted
Saturday Night Live on May 8. read more She later bought 40% of her ether
position back at a lower price.

 

The Tesla CEO has flip-flopped on whether the electric carmaker would accept
bitcoin as a payment, and has often moved the price of dogecoin with his
tweets.

 

"When you see ... people diving into the markets for fear of missing out,
that's usually a good time to get out," Francus said.

 

Doug Liantonio, 31, of Deerfield Beach, Florida, said he owns dogecoin and
ethereum classic. With dogecoin prices down 50% from their highs, he is
waiting for another rally before selling.

 

"I don't think I will wait for Elon's PR stunt for his rocket, that would be
too late," he said. Musk recently announced that his company SpaceX will
launch a rocket to the moon next year, funded with Dogecoin. read more

 

For Bettencourt, the photographer, the ups and downs of crypto are part of
its appeal.

 

Investing in cryptocurrencies “feels like that scary rollercoaster,” he
said. “You're riding it up and riding it down and feeling every twist and
turn, which to me is exciting and fun.”

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

 

EXCLUSIVE Boeing plans new 737 MAX output jump in late-2022, sources say

Planemaker Boeing Co (BA.N) has drawn up preliminary plans for a fresh
sprint in 737 MAX output to as many as 42 jets a month in fall 2022,
industry sources said, in a bid to extend its recovery from overlapping
safety and COVID-19 crises.

 

The plans would lift output beyond an early 2022 target of 31 a month, which
the sources said Boeing aims to reach in March.

 

But implementation will depend on a cocktail of factors including demand,
the uncertain capacity of some suppliers and Boeing's success in reducing a
surplus of jets already built.

 

Boeing declined to comment and pointed to its latest guidance. Last month it
reaffirmed plans to raise MAX output from an unspecified "low" rate to 31 a
month by early 2022.

 

Shares in the planemaker rose as much as 3.7% in early trading, outpacing a
slightly firmer U.S. market.

 

Production was halted in 2019 after Boeing's fastest-selling model was
grounded in the wake of fatal crashes. It resumed last May at a fraction of
its original pace while Boeing navigated regulatory approvals and a fragile
supply chain.

 

It is still awaiting the go-ahead from China after winning Western approvals
late last year. Chief Executive Dave Calhoun has warned that the timing of
remaining approvals will influence the shape of Boeing's final production
ramp-up.

 

As an interim step, Boeing hopes to speed monthly output from single digits
now to about 26 a month at the end of 2021 at its Renton factory near
Seattle, two of the sources said.

 

Higher production could inject much-needed cash into the supply chain and
reduce Boeing's component costs.

 

The Puget Sound aerospace industry has already started to pick up steam.
Sources say Boeing has been placing parts orders again, while fuselages can
be seen heading by rail to the Seattle area from Spirit AeroSystems' (SPR.N)
Wichita factory.

 

STEEP CLIMB

 

A Boeing 737 MAX airplane lands after a test flight at Boeing Field in
Seattle, Washington, U.S. June 29, 2020. REUTERS/Karen Ducey/File Photo/File
Photo

That comes as demand for medium-haul jets such as the 737 MAX and competing
Airbus (AIR.PA) A320neo begins to recover from the effects of the COVID-19
pandemic, boosted by widespread vaccinations, especially in the busy U.S.
domestic market.

 

However, several U.S. and European suppliers view output plans of both
planemakers as optimistic, saying that concerns remain over the health of
the global aerospace supply chain.

 

"The biggest risk that we can see with Boeing's plans is the inability of
the supply chain to keep up," Vertical Research Partners analyst Rob
Stallard wrote in a client note about Reuters' story.

 

Boeing's efforts to restore production are also tied to the pace at which it
offloads an inventory of parked airplanes that swelled during the nearly two
years the MAX was grounded.

 

The published target of 31 a month has already slipped from late 2021 to
early 2022.

 

In Europe, Airbus (AIR.PA) has ordered suppliers to get ready for higher
output while warning them over quality glitches that can reflect
overstretched supply chains. read more

 

Both plane giants are embarking on their steepest ever climb in output,
drawing reassurance from accumulated parts inventory and the fact that their
plants had already covered the same territory in the past, albeit at slower
rates of increase.

 

But neither yet feels ready to return to the record volumes seen before
recent shocks to the industry.

 

Before the 2019 grounding, Boeing was producing 52 MAX a month on its way to
a target of 57. Airbus was making close to 60 of its A320neo airplanes a
month before last year's lockdowns.

 

Airbus plans to raise output from 40 to 45 airplanes a month by end-2021.
Reuters reported last week it had asked suppliers to prepare for 53 a month
by end-2022. read more

 

Output of larger long-haul jets remains depressed by a business travel slump
and is not expected to recover soon.

 

 

 

 

Bitcoin ends day on the ropes after China clamps down on mining, trading

Bitcoin extended losses on Friday afternoon, falling more than 11% after
China doubled down on efforts to prevent speculative and financial risks by
cracking down on mining and trading of the largest cryptocurrency. China's
Financial Stability and Development Committee, chaired by Vice Premier Liu
He, singled out bitcoin as the asset it needs to regulate more. read more

 

The world's largest and most popular cryptocurrency recently traded down
11.59% at $35,928 after holding the $40,000 level for most of the Asian and
London sessions.

 

Since hitting an all-time high just under $65,000 in mid-April, bitcoin has
fallen about 45%. It's down about 28% so far this week.

 

The statement, which came days after three Chinese industry bodies tightened
a ban on banks and payment companies providing crypto-related services, was
a sharp escalation of the country's push to stamp out speculation and fraud
in virtual currencies.

 

Liu is the most senior Chinese official to publicly order a crackdown on
bitcoin. This is the first time the government has explicitly targeted
crypto mining.

 

"It's hard to read into the real impact of potential action by China, as
these statements are being made without specifics," said John Wu, president
of Ava Labs, an open-source platform for financial applications.

 

"That said, this statement does show the clear risk for bitcoin mining being
so reliant on China, and the wills of its government."

 

Cryptocurrency exchanges operating in Hong Kong will have to be licensed by
the city's markets regulator and will only be allowed to provide services to
professional investors, according to government proposals to be presented
later this year. read more

 

Earlier on Friday, China's state broadcaster CCTV warned against "systemic
risks" of cryptocurrency trading in a commentary on its website.

 

"Bitcoin is no longer an investment tool to avoid risks. Rather, it's
speculative instrument," CCTV said, adding the cryptocurrency is a
lightly-regulated asset often used in black market trade, money-laundering,
arms smuggling, gambling and drug dealings.

 

Rival cryptocurrency ether also came under pressure, trading down about 15%
at $2,339.

 

"China has tried so often to tackle bitcoin, exchanges, and mining since
2013 that I don't think this should come as a surprise anymore," said Ruud
Feltkamp, chief executive officer at crypto trading bot Cryptohopper.

 

"I would be surprised if it is going to have a substantial long-term effect
on bitcoin."

 

China's latest campaign against crypto came after the U.S. Treasury
Department on Thursday called for new rules that would require large
cryptocurrency transfers to be reported to the Internal Revenue Service and
the Federal Reserve flagged the risks cryptocurrencies posed to financial
stability. read more

 

"Nerves remained heightened, and I cannot see liquidity being deeper on
Saturdays and Sundays than Monday to Friday, especially after the last
week," said Jeffrey Halley, senior market analyst at OANDA.

 

"Weekend headline risk could prompt another bout of extended wealth
destruction for the weekend warriors."

 

Bitcoin markets operate 24/7, setting the stage for price swings at
unpredictable hours, with retail and day traders driving those moves. read
more

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

NYC's pandemic-hit hospitality industry faces labor shortage a year on

After more than a year of being hard hit by the coronavirus pandemic, New
York City restaurants reopened indoor dining to 100% capacity this week, but
a shortage of hospitality workers has left some restaurant and bar owners
scrambling.

 

Pat Hughes, owner of Manhattan bar Scruffy Duffy's, which has been shuttered
for more than a year, said the bar would not reopen until he finds a good
bartender - but feared that with people earning more collecting unemployment
benefits and pandemic assistance that may be difficult.

 

"If you're on unemployment, you're receiving... $750 take home (weekly)...
So if you're working in a bar or restaurant, you're not making that kind of
money," Hughes said.

 

Hughes said he would need to pay higher wages to attract employees, but
those costs would be passed on to the consumer. "And how much more is the
customer willing to pay for a hamburger or a Bud Light? It's already
expensive."

 

According to job search website Joblist, hospitality job openings in New
York have almost doubled in the last three months. But the current level of
interest in hospitality jobs in New York on the site is down more than 40%
from its peak in June, during the first wave of reopenings.

 

Owner and Executive Chef Paul Denamiel of French restaurant Le Rivage in the
Hell's Kitchen neighborhood of Manhattan said many former hospitality
workers had decided to leave the industry altogether.

 

"It was a hard industry to begin with," he said. "So a lot of people were
like, 'Ugh is this really what I want?' A lot of those...longtime career
hospitality people are just not there. They're gone."

 

Former bartender Aaron Kolatch, who worked for eight years at some of New
York City's most popular bars, is one of those people.

 

Kolatch decided to learn code as a hobby during the pandemic until bars
reopened, but after signing up for an online introductory course on computer
science, he realized he wanted to change careers to become a software
engineer.

 

"Did I want to manage a bar in 10 years or did I want something that had the
potential to maybe one day move to Jersey and get a house, if that's what I
wanted to do?" he said.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

White House pares infrastructure proposal to $1.7 trillion, Republicans balk

The White House said on Friday it had pared down its infrastructure bill to
$1.7 trillion from $2.25 trillion, with cuts to investments in broadband and
roads and bridges, but Republicans dismissed the changes as insufficient for
a deal.

 

The White House effort represented a desire by President Joe Biden to engage
with the opposition party on an issue that the Democratic president has made
a priority in his early days in office.

 

But the two sides remain far apart on everything from the size of the
package to how to pay for it.

 

White House officials held a call with a group of Republican senators on
Friday to hash out some of their differences and present the new draft.

 

"This proposal exhibits a willingness to come down in size, giving on some
areas that are important to the president ... while also staying firm in
areas that are most vital to rebuilding our infrastructure and industries of
the future," White House spokeswoman Jen Psaki told reporters.

 

Some aspects that had been removed from the new proposal, such as
investments in research and development, would find their way into other
bills, she said.

 

Republican U.S. Senators Shelley Moore Capito, John Barrasso, Roy Blunt,
Mike Crapo, Pat Toomey, and Roger Wicker have put forward their own
proposal, which is much smaller than the White House version.

 

White House Press Secretary Jen Psaki speaks during a briefing at the White
House in Washington, U.S., May 20, 2021. REUTERS/Kevin Lamarque     

They said the White House proposal could not pass Congress with bipartisan
support.

 

"Based on today’s meeting, the groups seem further apart after two meetings
with White House staff than they were after one meeting with President
Biden," the senators said in a statement, adding that they would continue to
engage with the administration.

 

A White House memo showed Biden's new proposal would reduce spending on
broadband to $65 billion, down from an initially proposed $100 billion.

 

Spending on roads, bridges and major infrastructure projects would drop to
$120 billion, down from Biden's initial proposal of $159 billion but well
above Republicans' desired $48 billion.

 

Psaki said that because the overall cost of the package had come down, the
need for "pay-fors" would also be reduced. Biden remained committed to not
raising taxes on people making less than $400,000 a year, she said.

 

The White House plan, which Republicans have decried as too expensive, would
seek to address climate change and social issues such as elder care, in
addition to revitalizing traditional transportation infrastructure.

 

It would cover the cost of the investments by raising taxes on U.S.
corporations and wealthy Americans. Top Republican lawmakers have said they
would not agree to a tax hike.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

Namibia: Oil Driller Applies for Kavango Land

AN application by Canadian oil and gas company Reconnaissance Africa
(ReconAfrica) for occupational land rights in two areas of the Kavango East
region has been met with criticism by local communities and environmental
activists, who have been given a week to lodge their objections.

 

Local groups say the objection period is too short for stakeholders to give
fruitful feedback.

 

Stakeholders have already taken issue with ReconAfrica's occupation of land
in the Kawe and Mbambi villages during public meetings earlier this year.

The land in question falls under the jurisdiction of the Shambyu Traditional
Authority.

 

According to an announcement published in New Era last Friday by the Kavango
East Regional Council, ReconAfrica applied for occupational land rights -
3,2 hectares at Kawe and 2,93 hectares at Mbambi - for five years each to do
oil exploration.

 

An image shared by environmental group Friday's for Future Windhoek
illustrates that ReconAfrica has already dug a large pit at Mbambi.

 

Jonas Kalenga says this land is ancestral land, belonging to his family,
which was never consulted.

 

According to Kalenga, village headwoman Eveline Ngila was approached and
informed about an oil discovery, but she denies authorising the use of the
land.

 

"She said it came from the traditional authority, and that's when we found
out about Recon," he says.

In later correspondence from the family to ReconAfrica, the oil company
confirmed that the Shambyu Traditional Authority gave it the authorisation,
which was signed off by the traditional authority's chairperson, Edward
Sikerete.

 

Sikerete could not be reached for comment.

 

Kalenga says the family has since sought the assistance of the Legal
Assistance Centre (LAC).

 

They are suing the Namibian branch of the oil company (Reconnaissance Energy
Namibia) in the High Court of Namibia, claiming they have been squatting on
the family's land since December 2020.

 

The family also currently has a spoliation application pending before the
High Court of Namibia.

 

The LAC on Tuesday sent a letter to the Kavango East Communal Land Board to
officially file the family's objections.

 

" ... This application was issued and served on 19 April and is now opposed
by Recon while it in the meantime seeks to legitimise its unlawful
occupation," the letter, prepared by legal practitioner CJ van Wyk,
detailed.

Furthermore, the LAC argued that ReconAfrica's application for occupational
land rights is not lawful.

 

"In the circumstances where there is already a dispute pending in the High
Court, the faulty application also constitutes a denial of the legal
processes due to our client.

 

"As a result, we respectfully urge the board to consider the qualifying
criteria for any occupational right to be granted on communal land in terms
of the act, and additionally to take further steps ... to evict the
applicant, Recon, from the land," the letter reads.

 

Kalenga says the family will also submit an objection to ReconAfrica's
application.

 

"It is clear that Recon Energy Namibia's application suffers from defects,
which causes the application to be non-compliant with the requirements set
out in the regulations ... The law is clear in its intent. Communal land is
not to be turned over to private companies for the sake of profit-seeking,"
said the family in a objection letter shared with The Namibian.

 

"We already had land rights and were in occupation of that piece of land by
the time Recon came and started drilling for oil and gas extraction. We were
forcefully and unlawfully evicted from our land," the objection states.

 

Frack Free Namibia has asked the communal land board to extend the window
for objections to allow local stakeholders an opportunity to prepare and
submit their objections.

 

Rinaani Musutua, a community activist and trustee of the Economic and Social
Justice Trust, says there are suspicions that ReconAfrica did not apply for
land rights when they should have.

 

"The traditional authority is allowed to give land rights to whoever, but
that decision must be discussed with a communal landlord," she
says.-Namibian.

 

 

 

Mozambique: International Energy Agency Says No Future for Mozambique Gas

Mozambique's gas fields cannot be developed if global warming is to be kept
to 1.5º above pre-industrial levels, according to a dramatic International
Energy Agency (IEA) report published Tuesday (18 May). The IEA is part of
OECD and thus represents establishment, mainstream thinking. So when it says
gas is done, that carries significant weight.

 

The IEA report is entitled Net Zero by 2050, and shows what needs to be done
to reduce global carbon dioxide (CO2) emissions to net zero by 2050, to
limit the long-term increase in average global temperatures to 1.5º C, and
ensure universal access to electricity and clean cooking by 2030.
https://www.iea.org/reports/net-zero-by-2050

 

To do this requires that "beyond projects already committed as of 2021,
there are no new oil and gas fields approved for development." Only two Cabo
Delgado projects fit within that window - ENI's floating LNG plant (3
million tonnes per year - mt/y - of LNG) and Total's suspended project (13
mt/y). ExxonMobil has still not committed, and Total has not committed to a
larger project, so under IEA scenario they are excluded. In any case, the
Economist (4 Feb) reports that shareholders are pushing ExxonMobil to go
green. This means production of at most 16 mt/y, which is far less than the
100 mt/y being predicted just six years ago.

"The contraction of oil and natural gas production will have far-reaching
implications for all the countries and companies that produce these fuels.
No new oil and natural gas fields are needed." This will mean a huge cut in
projected income for gas-producing countries. "Net zero calls for nothing
less than a complete transformation of how we produce, transport and consume
energy."

 

"No new natural gas fields are needed
 beyond those already under
development. Also not needed are many of the liquefied natural gas (LNG)
liquefaction facilities currently under construction or at the planning
stage. Between 2020 and 2050, natural gas traded as LNG falls by 60%. ... In
the 2030s some [gas] fields may be closed prematurely or shut temporarily."

The AEI report puts forward three scenarios:

 

+ Specific policies that are in place or have been announced by governments.
This leads to a global temperature rise of 2.7º. In 2050 natural gas use is
50% higher than now. (This is approximately the projection of the Gas
Exporting Countries Forum.)

 

+ All announced pledges are achieved in full and on time. This leads to a
global temperature rise of 2.1º. Natural gas use expands by 10% to 4 350 bcm
(billion cubic metres) in 2025 and remains about that level to 2050. (The is
what the gas industry is planning for.)

 

+ IEA net zero. Global temperature rise is held to 1.5º. Natural gas
increases to 4 300 (bcm) in 2025, similar to "all announced pledges", but
then drops dramatically to 3 700 bcm in 2030 and to 1 750 bcm in 2050. By
2050, natural gas use is 55% lower than in 2020. (Note that by the 2025
peak, only ENI's floating platform will be producing.) This scenario also
includes universal access to electricity and clean cooking by 2030.

 

 

 

Ethiopia: GERD Construction Reaches Over 80 Percent Completion

ADDIS ABABA - The overall construction of the Grand Ethiopian Renaissance
Dam ( GERD) a symbol of national unity and economic growth, has reached 80
percent due to the meticulous leadership of the past three years, Ministry
of Water , Irrigation and Energy said.

 

Belete Berhanu (PhD) from the ministry told local media that the
construction of the dam has been executed carefully, responsibly and without
interruption. The government has given top priority to the project, which
would be an engine to the industrialization of the country. Belete
highlighted that the second phase filling of the dam and preliminary energy
producing trial are the major plans of the project.

 

As to him, all the necessary preconditions to undertake the second filling
has been completed and the only thing remaining is filling gates and binding
them up. Egypt has been struggling to harm the interest of Ethiopia and not
seeking for her share of the water.

 

The construction of the project had been lagged behind due to several
reasons. However, the restructuring of the management of the project has
solved the problem. Famous companies from Germany, France and China have
enhanced the construction progress, Belete disclosed.

Currently, the project is ready to accumulate the expected amount of water
via the second round filling. The first and second round filling would
retain a total of 18.4 Billion cubic meter of water so that the two turbines
would operational in this year, it was learnt. Ibrahim Edris, Member of GERD
Trilateral Negotiations said on his part it is Egypt's hypocrisy to demand
Ethiopia to consult it prior to the commencement of the GERD as the former
did not consult Ethiopia when building Aswan High Dam in the River Nile.

 

At to him, that Ethiopia had not signed any binding agreement which rules
the utilization of the water resources. The Egyptians claim to rule the
water utilization is obsolete. That is why they are lobbying the
international community to influence the government of Ethiopia from
operating the dam. 98.1 percent of civil works, 54.5 percent of the electric
mechanical and 55.2 of hydroelectric structure works have been completed, he
explained.

 

To Sheikh Kassim Tajudin, Islamic Affairs Supreme Council Secretary,
external enemies are working to disunite the Ethiopians into ethnic and
religious lines to weaken the power of the country. Spreading wrong
information about the status and progress of the project has been one of the
strategies to halt the construction progress, he concluded.-Ethiopian
Herald.

 

 

 

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.

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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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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<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
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