Major International Business Headlines Brief::: 27 May 2021

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Major International Business Headlines Brief::: 27 May 2021

 


 

 


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

 


 

 


ü  US and China trade officials hold 'candid' first talks of Biden era

ü  US banks accused of failing the public during Covid

ü  Iran bans cryptocurrency mining for four months after blackouts

ü  Amazon buys Hollywood studio MGM for $8.45bn

ü  Uber recognises union for first time in landmark deal

ü  Shell: Netherlands court orders oil giant to cut emissions

ü  Nissan 'in talks to build huge UK battery factory'

ü  Holiday islands considered for green list

ü  Asian shares step back from 2-wk highs, dollar firm

ü  Biden administration backs Alaska oil drilling project approved under Trump

ü  HSBC exits loss-making U.S. retail banking as part of Asia pivot

ü  Rising beef prices squeeze carnivores from Buenos Aires to California

ü  Cryptos turn choppy as bounce momentum ebbs

ü  The little engine that could, and the oil giant that couldn’t

ü  U.S. trade chief Tai says U.S. faces ‘very large challenges’ on China

ü  Bayer sticks to $2 bln provision after Glyphosate ruling

ü  Rwanda: Spenn Partners With Espoir to Promote Cost-Free Digital Payments

ü  Kenya: Construction of Sh400m Tharaka Nithi County Headquarters Stalls Yet Again

ü  Malawi: Nyasa Big Bullets CEO Suzgo Nyirenda Plans to Launch Own TV Station

 

 

 

 

 

 

 

 


 <https://www.facebook.com/Hyundaizimbabwe/> 

 


 

US and China trade officials hold 'candid' first talks of Biden era

The US and China's top trade negotiators have held "candid, pragmatic" talks, in their first meeting under the Biden presidency.

 

US Trade Representative Katherine Tai and Chinese Vice Premier Liu He held a virtual meeting on Thursday.

 

Both sides said they discussed the importance of the trade relationship between the two countries.

 

The talks follow the Trump administration's combative stance towards China and resulting trade war.

 

The Office of the United States Trade Representative said that Ms Tai and Mr Liu "discussed the guiding principles of the Biden-Harris Administration's worker-centered trade policy and her ongoing review of the U.S.-China trade relationship, while also raising issues of concern."

 

Both sides said they had agreed to continue their negotiations.

 

The Chinese Commerce Ministry said in a statement that both sides held "candid, pragmatic and constructive exchanges with an attitude of equality and mutual respect", according to a report by state media outlet the Global Times.

 

It added that both sides saw "the development of bilateral trade [as] very important."

 

Ahead of the talks Ms Tai told the Reuters news agency that the US still faced "very large challenges" in its trade relationship with China.

 

A bitter trade war under former President Donald Trump saw tariffs placed on a range of goods traded between the US and China.

 

The world's two biggest economies signed a so-called "phase 1" agreement in January last year.

 

In that pact Beijing promised to increase its purchases of US products and services by at least $200bn (£142bn) over 2020 and 2021.

 

Ms Tai has said she is now looking at whether the terms of the deal have been met by Beijing, as some experts have suggested that China has fallen up to 40% short on its agreement to buy American goods.

 

So far, US President Joe Biden has not pulled back on the tough trade messaging to Beijing of his predecessor.

 

President Biden has insisted that existing tariffs will be kept in place for now as he looks to boost the US economy, which was hit hard early in the coronavirus pandemic but is now recovering.

 

Beijing has also maintained duties on some imports from America.

 

China was the only major economy to see its global trade grow last year as it became the first big country to emerge from the pandemic.

 

Sales of Chinese-made goods have soared around the world, as demand from the US jumped and the Covid-19 crisis in India stalled much of its factory production.--BBC

 

 

 

US banks accused of failing the public during Covid

Big US banks have been criticised for not doing enough to help ordinary people during the pandemic.

 

The bosses of JP Morgan, Bank of America, Citigroup, Wells Fargo and Goldman Sachs were grilled during an appearance before US lawmakers.

 

"Wall Street profits no matter what happens to workers, because those profits now come at the expense of workers," one senator said.

 

But the bank bosses pointed to relief given out during Covid.

 

In his opening remarks Democratic Senator Sherrod Brown, chair of the Senate Banking Committee, added that when employees get sick or lose their jobs, "they don't get a taxpayer bailout".

 

"And they all remember that Wall Street did," he said, referring to the 2008 financial crisis.

 

Sen. Brown also challenged chief executives over levels of pay: "Stock prices have soared, your own compensation is stratospheric, but workers are getting a smaller and smaller share of the wealth they create."

 

David Solomon, the boss of Goldman Sachs, said that it had given workers an additional 10 days of leave over the last year, as well as continuing to pay on-site staff such as cleaners or canteen workers even if they weren't working.

 

Jane Fraser, the chief executive of Citigroup and first female boss of a Wall Street bank, also pointed towards efforts to help small business owners.

 

She said the bank had issued $5bn (£3.5bn) in emergency Paycheck Protection Program (PPP) loans - with 80% going to firms with fewer than 10 employees.

 

Hostile exchange

Democratic Senator Elizabeth Warren also criticised the bankers for charging customers overdraft fees, even as regulators recommended that they should be waived.

 

In a hostile exchange with JP Morgan boss Jamie Dimon, she claimed the firm had collected about £1.5bn in overdraft fees in 2020 - more than any other bank at the hearing.

 

"You and your colleagues came in today to talk about how you stepped up to help your customers during the pandemic. It's a bunch of baloney," she said.

 

The big bank CEOs came to the Senate today to talk about how they stepped up and took care of customers during the pandemic – and I told them that’s a bunch of baloney. They nickel and dimed their struggling customers with overdraft fees to line their own pockets. pic.twitter.com/yKYwScMUs9

 

"This past year has shown that corporate profits are more important to your bank than offering just a little help to struggling families even when we're in the middle of a worldwide crisis," she added.

 

But Mr Dimon said he did not recognise those numbers and that the fees were cancelled for any customers who asked.

 

When each of the bosses were asked if they would refund the fees charged last year, they said no.

 

The executives also came in for criticism from Republicans at the hearing, wary of "woke-ism" and "left-wing attacks on capitalism".

 

Sen. Pat Toomey raised concerns over banks prioritising social causes, citing examples such as climate change, rather than clients' financial interests.

 

Each bank boss referred to efforts to reduce their carbon emissions, as well as their efforts to improve diversity in their organisations.--BBC

 

 

 

Iran bans cryptocurrency mining for four months after blackouts

Iran has announced a four-month ban on the energy-consuming mining of cryptocurrencies such as Bitcoin after cities suffered unplanned blackouts.

 

President Hassan Rouhani told a cabinet meeting the main cause of the blackouts was a drought that had affected hydro-electric power generation.

 

But he said cryptocurrency mining, 85% of which is unlicensed, was draining more than 2GW from the grid each day.

 

An estimated 4.5% of all Bitcoin mining takes place in Iran.

 

According to analytics firm Elliptic, the activity allows the country to bypass sanctions and earn hundreds of millions of dollars in crypto-assets that can be used to purchase imports.

 

Iran's banks were cut off from the global financial system and its oil exports plummeted, depriving it of a major source of hard currency and revenue, as a result of sanctions reinstated by the US in 2018 when then President Donald Trump abandoned a landmark nuclear deal.

 

Bitcoin operates on the blockchain, a digital ledger of transactions. Miners audit Bitcoin transactions in exchange for an opportunity to acquire the digital currency. It requires enormous computing power, which in turn uses huge amounts of electricity.

 

Elliptic said Iranian authorities officially recognised cryptocurrency mining in 2019 and later established a licensing regime that required miners to identify themselves, pay a higher tariff for electricity, and to sell their mined bitcoins to the Central Bank of Iran.

 

The national electricity company said on Saturday that licensed cryptocurrency mining facilities had already voluntarily shut down their operations to ease the burden.

 

But Mr Rouhani said on Wednesday that unlicensed facilities were using between six and seven times more power and that he therefore had to ban all cryptocurrency activities until 22 September.

 

The president also said the energy minister had been right to apologise to Iranians for the unplanned blackouts that affected businesses and households in Tehran and several other cities last week.-BBC

 

 

Amazon buys Hollywood studio MGM for $8.45bn

Amazon has agreed to buy the historic MGM studios for $8.45bn (£5.97bn).

 

MGM is one of Hollywood's most famous studios, having produced classic films such as Some Like It Hot and Singin' In The Rain.

 

The sale will give the tech giant's Prime streaming service access to a huge back catalogue of content.

 

An Amazon executive said on Wednesday: "It's very exciting and provides so many opportunities for high-quality storytelling."

 

Mike Hopkins, senior vice president of Prime Video and Amazon Studios, added: "The real financial value behind this deal is the treasure trove of Intellectual Property in the deep catalogue that we plan to re-imagine and develop together with MGM's talented team."

 

The deal will boost Amazon Prime Video's offering with about 4,000 films, including the James Bond franchise and Legally Blonde, as well as 17,000 television shows such as the Handmaid's Tale TV series.

 

The producers behind James Bond have said, however, that the sale would not affect the upcoming release of No Time to Die in cinemas, according to Variety magazine.

 

"We are committed to continuing to make James Bond films for the worldwide theatrical audience," said Barbara Broccoli and Michael Wilson.

 

MGM Holdings, the parent company of MGM Studios, had reportedly been exploring a sale since 2020.

 

Amazon said in a statement that the deal would allow MGM, founded in 1924 and recognised by its roaring Leo the Lion logo, "to continue to do what they do best: great storytelling."

 

Streaming shake-up

Kevin Ulrich, Chairman of the Board of Directors of MGM, said: "I am very proud that MGM's Lion, which has long evoked the Golden Age of Hollywood, will continue its storied history.

 

"The opportunity to align MGM's storied history with Amazon is an inspiring combination."

 

But Amazon's streaming service now faces a long list of competitors, such as Netflix, Disney+ and Apple TV - all hoping that any binge-watching habits developed during lockdown will stick.

 

"Amazon is seeking to become a more prominent player in the entertainment world, and there's no better way to do that than by buying one of the most iconic movie studios in Hollywood," said Jesse Cohen, a senior financial analyst at Investing.com.

 

"It's all about content as the streaming war heats up."

 

The Amazon-MGM deal comes within weeks of telecoms giant AT&T agreeing a $43bn deal to combine its WarnerMedia unit with Discovery to create a new streaming giant.

 

The tie-up brings one of Hollywood's biggest studios and Discovery's channels under the same ownership - but also marks the entry of another player into the market.

 

Amazon's takeover of MGM will also need to be approved by regulators, at a time when the firm is under scrutiny in the European Union and in the US over its business practices.

 

The acquisition marks Amazon's second-biggest after it bought upmarket grocery chain Whole Foods Market for $13.7bn in 2017.-BBC

 

 

 

Uber recognises union for first time in landmark deal

Ride-hailing giant Uber has agreed to recognise a trade union for the first time, in a landmark deal that should benefit gig economy workers.

 

The GMB union will have the power to represent UK drivers in discussions over earnings, pensions, benefits and their health and wellbeing.

 

Mick Rix, national officer at GMB, said it could be "the first step to a fairer working life for millions of people".

 

Uber said the move showed its commitment to its 70,000 UK drivers.

 

"While Uber and GMB may not seem like obvious allies, we've always agreed that drivers must come first, and today we have struck this important deal to improve workers' protections," said Jamie Heywood, regional general manager for Northern and Eastern Europe.

 

Why is this important?

For years Uber resisted calls to recognise unions, which had criticised the firm for not granting drivers basic rights such as sick pay or a minimum wage.

 

Uber had argued its drivers were freelancers and not entitled to these benefits. But in March it changed its stance after the Supreme Court ruled that its drivers should be classified as workers - a category entitling them to better pay and conditions.

 

Uber 'willing to change' as drivers get minimum wage

Now it provides them with a National Living Wage guarantee, holiday pay and a pension.

 

And by recognising GMB, the ride-hailing giant has gone a step further, giving a union the right to negotiate on behalf of drivers for the first time.

 

How will this work?

The two sides will meet quarterly to discuss driver issues and concerns while Uber has agreed access rights for GMB representatives at driver hubs.

 

Under the agreement, GMB and Uber will discuss topics such as Uber's National Living Wage guarantee, pensions and holiday pay.

 

Drivers won't automatically become members, and to be represented by the union, they will have to sign up.

 

What do unions think?

GMB called on other operators to follow suit, saying the deal offered a golden opportunity to improve workers' rights.

 

"This agreement shows gig economy companies don't have to be a Wild West on the untamed frontier of employment rights," said Mr Rix.

 

TUC general secretary Frances O'Grady said the agreement would give Uber drivers "a real voice at work".

 

Uber worker benefits 'will make a difference'

But the organisation that brought the Supreme Court employment case against Uber, the App Drivers & Couriers Union (ADCU), said there was "good reason for workers and their unions to be cautious".

 

It said Uber was still not providing a minimum wage for all working time and holiday pay in the UK, "despite the recent UK Supreme Court ruling in our favour".

 

"At this time ADCU is not prepared to enter into a recognition agreement with Uber," it added.

 

The UK is the only country in which Uber has recognised a union, and its is still being challenged by its drivers in many other markets over whether they should be classed as workers or self-employed.-BBC

 

 

 

Shell: Netherlands court orders oil giant to cut emissions

A court in the Netherlands has ruled in a landmark case that the oil giant Shell must reduce its emissions.

 

By 2030, Shell must cut its CO2 emissions by 45% compared to 2019 levels, the civil court ruled.

 

The Shell group is responsible for its own CO2 emissions and those of its suppliers, the verdict said.

 

It is the first time a company has been legally obliged to align its policies with the Paris climate accords, says Friends of the Earth (FoE).

 

The environmental group brought the case to court in 2019, alongside six other bodies and more than 17,000 Dutch citizens.

 

Though the decision only applies in the Netherlands, it could have wider effects elsewhere. BBC Netherlands correspondent Anna Holligan tweeted that it was a "precedent-setting judgement".

 

A Shell spokesperson said they "fully expect to appeal today's disappointing court decision" and added that they are stepping up efforts to cut emissions.

 

"Urgent action is needed on climate change, which is why we have accelerated our efforts to become a net-zero emissions energy company by 2050," the spokesperson said, adding that Shell was investing "billions of dollars in low-carbon energy, including electric vehicle charging, hydrogen, renewables and biofuels".

 

"This is really great news and a gigantic victory for the earth, our children and for all of us," FoE director Donald Pols said in a statement. "The judge leaves no doubt about it: Shell is causing dangerous climate change and must now stop it quickly."

 

Tears. of. joy. 🚨WE WON! 🚨

 

The Dutch court just ruled Shell must cut its CO2 emissions by 45% by 2030 (relative to 2019 levels).

 

The climate fight is enormous but we know we can win this thing, beat fossil fuel companies and build a better world. ❤️#StopShell pic.twitter.com/MCGHyfI9Gf

 

Under the terms of the Paris Agreement on climate change, nearly 200 nations agreed to keep global temperatures "well below" 2C above pre-industrial levels.

 

The legally binding treaty came into force on 4 November 2016. The US withdrew under former President Donald Trump but has since rejoined under President Joe Biden.

 

A number of groups around the world are now trying to force companies and governments to comply with the accords through the courts.

 

Shell has previously said it wants net zero emissions for itself and from products used by its customers by 2050.

 

In December its defence lawyers told the Dutch court the company was already taking "serious steps" to move away from fossil fuels, and said there was no legal basis for the case.

 

Other major oil companies are also making changes amid a greater global focus on cutting emissions.

 

On Wednesday Chevron investors voted in favour of a proposal to cut its customer emissions, while shareholders at Exxon elected two climate activists to its board after months of wrangling over its business direction.

 

The Shell verdict is a massive win for environmental campaigners, and other industrial giants will be scrambling to figure out how it could affect them.

 

Because suddenly it's not good enough for firms to comply with the law on their emissions - in an extraordinary case like this, they have to comply with global climate policy too.

 

The company's defence is that if people feel progress towards cutting emissions is too slow, they should lobby governments - not Shell - to change policies and introduce financial incentives.

 

The judges have clearly decided that Shell should be taking responsibility itself for cutting emissions much faster.

 

The firm will surely appeal - and it might well win the case in a higher court.

 

But this verdict alone will be a warning to companies round the world that the battle against climate change may be spelling the end of anything resembling "business as usual".

 

Shell - full name Royal Dutch Shell - is a British-Dutch multinational. Because its headquarters are in The Hague, FoE was able to bring a case to a Dutch court.

 

Earlier this year another Dutch court ruled that Shell was responsible for damage caused by oil leaks in the Niger Delta, and ordered the company to pay compensation to farmers.

 

Shell, however, has said the leaks were the result of "sabotage".--BBC

 

 

 

Nissan 'in talks to build huge UK battery factory'

Car giant Nissan is reportedly in advanced talks to build a huge electric car battery plant in the UK.

 

The Japanese company would not confirm a Financial Times story about the plans for a gigafactory, but pointed to its Sunderland plant's crucial role in producing electric vehicles.

 

The FT said Nissan wants the UK to be its main electric hub outside Japan.

 

The government said it was committed to attracting battery factories, but did not comment on Nissan specifically.

 

The FT said that the factory, which would be built on the existing Sunderland site, would produce 200,000 batteries a year and support thousands of jobs.

 

Electric car sales are expected to soar in the next few years as the UK gets ready to end the sale of new petrol and diesel vehicles by 2030.

 

The measure is part of a 10-point "green industrial revolution" plan announced by Prime Minister Boris Johnson in November last year.

 

Electric cars: Your questions answered

What will happen to all the dead car batteries?

In a statement, Nissan said: "Having established EV [electric vehicle] and battery production in the UK in 2013 for the Nissan Leaf, our Sunderland plant has played a pioneering role in developing the electric vehicle market.

 

"As previously announced, we will continue to electrify our line-up as part of our global journey towards carbon neutrality. However, we have no further plans to announce at this time."

 

The government is surprised that anyone is at all surprised that they are talking to Nissan about the development of a battery factory in the North East.

 

The government has already been clear it has an ambition to build at least one giga factory in the UK this parliament and it is conducting regular talks with many different parties - including Jaguar Land Rover and newcomer British Volt.

 

Some cynical voices in the industry say that Nissan is a past master at getting the government to help pay for stuff they were going to do anyway, and this is no exception. Nissan already announced it was moving additional production to the existing plant in the North East that they used to own.

 

Although Nissan sold it to AESC, Nissan effectively controls it as its only customer. For once the government may be able to play Nissan at its own game. Get Nissan to help pay for something the government has promised to do anyway.

 

The talks will centre on how much bigger the battery factory needs to be if manufacturers other than Nissan are to have access to the batteries it produces.

 

A spokesperson for the Department of Business, Energy and Industrial Strategy (BEIS), said the government was determined to make the UK a home for the mass production of electric car batteries.

 

"We are committed to ensuring the UK continues to be one of the best locations in the world for automotive manufacturing through a major investment programme to electrify our supply chain, create jobs and secure a competitive future for the sector," the spokesperson said.

 

Other government sources told the BBC that although there are talks with Nissan, any decisions on battery factories are "nowhere near" being made.

 

The government is also in talks with other companies about building gigafactories.

 

It is likely that, as part of the negotiations, Nissan is exploring possible state subsidies to help finance building the plant.

 

Last week, reports that Tesla boss Elon Musk had visited the UK sparked speculation that the billionaire was looking for a site to build his own gigafactory.

 

And last month, start-up Britishvolt said it had bought the site of the former Blyth Power Station in Northumberland with the intention of turning it into a gigafactory.

 

Britishvolt, which hopes to be producing enough batteries for 300,000 electric cars a year by 2027, said it was "encouraged" by reports of potential further gigafactory investments in the UK.

 

"It is also positive to understand that the UK government is taking battery production seriously, on the road map to net zero, and are backing this up by providing funding in line with that provided in the EU for its battery industry development," the company said.

 

Plans are also under way to build a gigafactory in Coventry, next to the city's airport.

 

A joint venture by the airport and the city council is seeking to raise £2bn for the project, working with local carmakers and battery suppliers to secure the investment.—BBC

 

 

Holiday islands considered for green list

Islands such as the Canary Islands and Majorca could be placed on the UK green list of destinations for holidaymakers, a government minister has said.

 

The move may happen from 7 June, Transport Secretary Grant Shapps said.

 

At present, people from England can holiday in green list countries without having to quarantine on their return.

 

But travel operators and airlines have been pushing to be allowed to fly to holiday islands when the rest of the country is on the amber list.

 

So, that could mean people could holiday in popular destinations such as the Canary Islands and Majorca even if mainland Spain stays on the amber list.

 

Mr Shapps told the transport select committee that he has "asked The Joint Biosecurity Centre to consider islands within their criteria and where possible they would look to include if them if facts stacked up".

 

When pushed on whether this was possible by the review on 7 June, Mr Shapps replied: "technically that is possible, but I actually don't know because I don't have the data yet as to whether islands make the grade."

 

What are the UK's rules for foreign travel?

People across the UK can legally take foreign holidays - although Welsh residents have been asked not to travel abroad.

 

On England's traffic light list, foreign countries are classed as green, amber or red - with different rules for quarantine and Covid tests in place for each.

 

Government guidance is that you should not holiday in red or amber countries - which include Spain and most other countries.

 

Are you planning to travel to the Canary Islands or Majorca? Email haveyoursay at bbc.co.uk

Holidays to countries on the green list - including Portugal - can go ahead without a need to quarantine when you return.

 

The list is reviewed every three weeks and countries can change status at short notice. There are similar rules for Scotland, Wales and Northern Ireland.

 

Mr Shapps was pushed to explain why so few countries were on the green list when UK vaccination levels were high.

 

He said: "If you send people, even vaccinated people, to other countries, given vaccinations are not 100% reliable, then you are exposing them to risks that they don't have if they stay in the UK.

 

"'That's fine', you might say, 'That's their risk'. But not if they bring that back, then that is all of our risk, so we do have to move with the science."

 

Mr Shapps said there is scientific analysis of each destination when decisions are made to include countries on the list, including vaccination levels, virus levels and ability to track how the virus is evolving.

 

At the moment this is a waiting game, he said, and that travel would change when other countries catch up with UK levels of vaccinations. "Part of this is having the patience to let this come through the system."

 

He also said deaths in Germany and France are now higher per day than in the UK and allowing UK citizens to travel there exposes them to risk.

 

Mr Shapps added: "I am the Secretary of State for Transport, I want people to be able to travel, I have no other agency than [to] get people travelling, but we also recognise as a responsible government that it has to be safe."

 

Mr Shapps added that people may be able to use vaccine certificates rather than tests to travel later on in June.

 

'Overly cautious'

Earlier on Wednesday, the bosses of Tui, Jet2, Easyjet and Manchester Airport called on the government to expand the green list of destinations.

 

The holiday bosses didn't feel that Portugal, the only mass-market tourist destination on the green list, is enough of an offering for the summer.

 

Tour operators want the British holidaymakers' favourites of Majorca, Tenerife and Gran Canaria opened up, destinations they believe have good health protocols in place.

 

They want UK holidaymakers back on some of their favourite beaches.

 

Steve Heapy, the chief executive of Jet2, said: "We feel the government is overly cautious and that the list of green countries could be expanded with little increase in risk."

 

He said that there was currently no benefit of the vaccination programme when travelling, adding: "People need a break, people want to get back to normal."-BBC

 

 

 

Asian shares step back from 2-wk highs, dollar firm

Asian shares retreated from two-week highs on Thursday and China started on the backfoot on fears central banks were closer to considering winding back their emergency stimulus while the dollar held at a one-week top.

 

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was down 0.5% at 691.76, still not too far from Wednesday's high of 696.76, a level last seen on May 10.

 

Chinese shares started weaker with the blue-chip index (.CSI300) off 0.2%.

 

Australian shares were flat while New Zealand's benchmark index (.NZ50) stumbled 0.9%, extending losses for a second day in a row after the country's central bank on Wednesday signalled rate rises from next year.

 

Japan's Nikkei (.N225) was down 0.8%. E-Mini futures for the S&P 500 were down 0.2%.

 

Global equities markets have been supported by a concerted effort from major central banks who have pumped trillions of dollars in financial markets since last year while reiterating their lower-for-longer interest rate stance as they seek to cast any inflation rise as temporary.

 

Earlier this week, U.S. Federal Reserve Vice Chair Richard Clarida said he believed recent inflation pressures would “prove to be largely transitory,” though he did add that policymakers will be at a point to begin discussing tapering in upcoming meetings. read more

 

"While the efforts by various Fed speakers appeared to have assuaged market concerns, doubt remains," said GSFM investment strategist Stephen Miller. read more

 

"Clarida’s comments imply that the Fed may be a little bit more advanced than the 'not thinking about thinking' about monetary tightening that Chairman Jerome Powell characterised as the Fed’s stance last year - but only just a bit."

 

Overnight, the Fed Vice Chair for supervision, Randal Quarles, suggested that at some stage it will become important for the Fed to discuss plans to tighten its asset purchase programme.

 

"What that means is that after a period where monthly inflation reports have largely been sidelined as a market focus, that they once again assume primacy they once enjoyed as the statistical report that matters," Miller added.

 

On Wall Street, all three main indexes closed higher driven by consumer discretionary (.SPLRCD), communication services (.SPLRCL) and financial sectors (.SPSY).

 

The Dow (.DJI) was a touch firmer, the S&P 500 (.SPX) gained 0.2% and the Nasdaq Composite (.IXIC) added 0.6%.

 

The dollar index was at a one-week top of 90.152.

 

The euro fell to $1.2173, falling for a second straight session after the European Central Bank's (ECB) Executive Board’s Director, Fabio Panetta said it was too early to taper its emergency bond buying programme.

 

The New Zealand dollar was among the best performing currencies overnight. On Thursday, it retreated from a three-month top of $0.7317 to be last as $0.7270.

 

In commodities, gold prices fell below $1,900 per ounce, its appeal dimmed by a rebounding dollar and U.S. Treasury yields.

 

Spot gold shed 0.2% to $1,892.06 per ounce after hitting its highest since Jan. 8 at $1,912.50.

 

Oil prices were weaker too with Brent off 20 cents at $68.76 a barrel and U.S. crude down 19 cents at $66.02 a barrel.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Biden administration backs Alaska oil drilling project approved under Trump

U.S. President Joe Biden's administration defended on Wednesday a proposed ConocoPhillips (COP.N) oil development in Alaska, backing the drilling project which was approved under the administration of former President Donald Trump.

 

"A Wednesday filing by the U.S. Department of Justice continues to defend a 2020 Record of Decision for the Willow Project in the National Petroleum Reserve – Alaska (NPR-A)" a spokesman of the U.S. Interior Department said in an email.

 

In February, an appeals court blocked construction of ConocoPhillips' $2 billion-plus Willow crude oil project in Alaska. Wednesday's development comes even as Interior Secretary Deb Haaland had opposed the project last year when she was a member of Congress. read more

 

The Trump administration approved the Willow development plan in October. Permits to mine for gravel and build roads were issued on the morning of Jan. 20, just before Biden was sworn in as the nation's 46th president.

 

Environmental groups had sued, making the argument that the government failed to take into account the impact that drilling would have on fragile wildlife.

 

"The filing (on Wednesday) maintains that the decision complied with NEPA (National Environmental Policy Act) standards in place at the time, and that the plaintiffs did not challenge the Record of Decision within the time limitations associated with environmental review for projects in the NPR-A", according to the statement shared by a Department of Interior spokesman.

 

The project has been pushed by Alaska Senator Lisa Murkowski, a Republican, who along with another Republican senator, Dan Sullivan, discussed the oil project during a meeting with Biden on Monday, according to Politico.

 

Murkowski said the engagement with the Biden administration officials since that meeting was "very productive".

 

Willow holds 590 million barrels of recoverable oil and could produce up to 160,000 barrels per day as soon as 2024, according to ConocoPhillips' previous estimates.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

HSBC exits loss-making U.S. retail banking as part of Asia pivot

HSBC (HSBA.L) announced it is withdrawing from U.S. mass market retail banking by selling some parts of the money-losing business and winding down others, a long-awaited move as the lender steps up a shift in focus to Asia, its biggest market.

 

Europe's biggest bank has for years been trying to shrink its presence in some European and North American markets where it has struggled against competition from larger domestic players.

 

The bank said in a statement late on Wednesday it would exit retail banking for most individual and small business customers but retain a small physical presence in the United States to serve its international affluent and very wealthy clients.

 

"They are good businesses, but we lacked the scale to compete," Noel Quinn, HSBC group CEO, said in the statement.

 

HSBC unveiled in February a revised strategy focused mainly on wealth management in Asia, and at the same time said it was “exploring organic and inorganic options” for its U.S. retail banking franchise.

 

As part of Quinn's gameplan that also involved slashing costs across the banking group, the London-headquartered bank has been looking to step back from sub-scale markets and businesses.

 

HSBC is also seeking to sell its French retail banking operations as part of the same strategy, and has entered final negotiations to sell that business to private equity firm Cerberus, Reuters reported in March.

 

Citizens Bank, part of Citizens Financial Group (CFG.N), has agreed to buy HSBC's east coast personal and small business banking business including 80 branches, and Cathay Bank, a unit of Cathay General Bancorp (CATY.O), has agreed to buy its west coast business including 10 branches, according to HSBC and separate statements from the two U.S.-headquartered banks.

 

"These transactions, whilst very small in the context of HSBC group, should contribute to streamlining the group," analysts at Jefferies wrote in a note on Thursday. They added, though, that the bank is expected to still face some investor pushback as it is not completely exiting U.S. retail.

 

HSBC said it expected to incur pre-tax costs of $100 million connected with the transactions, after which it does not expect to generate a significant gain or loss.

 

HSBC's U.S. wealth and personal banking business made a loss of $547 million in 2020, according to the bank's annual results, versus a $5 billion profit in Asia, primarily from Hong Kong, its most profitable market.

 

Its global banking and markets division, which includes its investment banking and large corporate businesses, made a profit of $573 million in the United States in 2020.

 

The bank's Hong Kong listed shares rose as much as 0.8% to a three-month high, before retreating.

 

U.S. TROUBLES

 

HSBC expanded into U.S. retail banking in the 1980s as part of a broader strategy to diversify its geographical focus.

 

However, it has been trying to walk back on this for more than a decade, and in 2011 announced the sale of nearly half of its then 470 U.S. branches, mostly in upstate New York, and also its profitable U.S. credit card arm.

 

HSBC had acquired that credit cards business as part of its disastrous $14 billion purchase of U.S. consumer lending firm Household International in 2003, which triggered billions of dollars of subprime mortgage losses, and an eventual $1.6 billion payment to settle a class-action lawsuit.

 

The bank currently has a U.S. network of 148 branches.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Rising beef prices squeeze carnivores from Buenos Aires to California

Beef prices are surging worldwide, taking meat off the menu in steak-loving Buenos Aires and spoiling summer barbecues in the United States as Chinese imports rise and the cost of feeding cattle soars.

 

Globally, the surge is contributing to the highest food prices since 2014, according to the United Nations food agency, hitting poorer consumers particularly hard as they struggle to recover from economic shutdowns triggered by the COVID-19 pandemic.

 

The rise in beef prices has been spurred by increasing demand from China, limited cattle supplies in some countries, a shortage of slaughterhouse workers and rising feed costs. The trend is starting to rattle supplier markets and impact policy.

 

Argentina, the second-biggest beef supplier to China after Brazil, on May 17 halted exports for a month as it grapples with runaway inflation. It blamed high demand from Asia for drawing down local beef supplies and raising domestic prices.

 

"The price of meat has climbed really high, it's crazy," said Fernanda Alvarenga, a 38-year-old administrative employee in Buenos Aires.

 

She said she has cut back to eating meat at home just one day a week, instead of every two days. She has also started preparing milanesa, a popular breaded meat dish, with a cheaper cuadrada cut of meat, instead of more expensive peceto cuts.

 

"It costs something like 4,000 to 5,000 pesos ($42-$53) every month to buy my meat. Before, for the same amount you could get a lot more."

 

Beef prices in Argentina, where grilling beef on the barbecue is regarded as a basic human right and where the countryside is dotted with cattle ranches, have soared more than 60% in a year. Per-capita consumption has plunged, hitting a 100-year low in April, a meat industry chamber report showed.

 

Memes shared in WhatsApp chat groups lament how beef has become unaffordable, including jokes that inflation has pushed people instead to eat polenta - a wry dig at government food aid efforts during the pandemic.

 

CHINA'S APPETITE

 

In the first four months of 2021, China imported 178,482 tonnes of beef from Argentina, up from 152,776 tonnes a year earlier, according to China’s General Administration of Customs data.

 

Most of the imports are older cows that are not consumed domestically, according to Argentina's meat industry chamber, which opposes the government export ban. Farmers have protested the ban with a halt on local livestock trading.

 

China increased meat imports after a deadly pig virus, African swine fever, decimated its hog herd starting in 2018. More recently, Beijing suspended some beef imports from Australia, its No. 3 supplier from 2018 to 2020, as relations between the two countries deteriorate. Chinese importers have since depended more on other suppliers.

 

U.S. beef exports to China hit a monthly record in March of 14,552 tonnes, according to the U.S. Department of Agriculture, well above total shipments in all of 2019. A growing middle class in China is making room for beef in a diet that has long been pork-based.

 

"Beef used to be mainly consumed outside the home, like at restaurants. But beef is increasingly popular for home cooking," said Pan Chenjun, senior analyst at Rabobank.

 

Beef prices in China in late April were 4.4% higher than a year earlier, while pork prices were down 27.9%, according to data from China’s Ministry of Agriculture and Rural Affairs.

 

Shipping beef to importers like China is more profitable for countries such as Argentina and Brazil due to currency depreciation and weakening local demand, said Upali Galketi Aratchilage, the United Nations' Food and Agriculture Organization senior economist. The result, though, is that higher exports can reduce domestic supplies, driving up prices, Aratchilage said.

 

The United States and Brazil are still struggling to replenish domestic inventories of frozen beef, chicken and pork in storage after shipments to China increased last year even as COVID-19 ripped through slaughterhouses, sickening workers and hobbling production.

 

'ASTRONOMICAL' PRICES

 

In Clovis, California, retired Army veteran Darin Cross said he has been shocked by 2-pound (0.9 kg) packs of ground beef selling for $10 at Walmart, up from $8 previously. The 55-year-old is eating more vegetables as a result.

 

"For those of us on fixed incomes, that's a pretty steep increase in a matter of just a couple of weeks," Cross said. "My fear is that it's just going to keep going."

 

The average unit price for U.S. fresh beef in April rose by 5% from March and was up about 10% from a year earlier, according to NielsenIQ data. Pork and chicken prices are each up about 5.4% from last year.

 

Outside New Orleans, Tina Howell, 45, said she stopped buying steaks in bulk to fill up a deep freezer at her home because grocers stopped offering sales. She has noticed New York strip steaks selling for about $12 per pound, up from about $7 previously.

 

"The prices are astronomical," said Howell, who works in real-estate marketing.

 

Higher prices are benefiting meatpackers like Tyson Foods Inc (TSN.N), the largest U.S. meat processor by sales. The company said U.S. government stimulus checks are driving exceptional demand by giving consumers more money to buy food.

 

Although U.S. cattle supplies are ample, beef production is limited by a labor shortage and the processing capacity in slaughterhouses, according to meat producers.

 

Meatpackers are facing higher livestock feed costs with soy and corn prices around eight-year highs, and some are passing those costs on to consumers. Increased restaurant demand is also supporting prices as COVID-19 restrictions ease.

 

Nebraska-based Omaha Steaks, which sells premium beef, projects U.S. demand will remain strong through the summer as people are willing to have larger gatherings and pay for high-quality food, CEO Todd Simon said.

 

Brazilian meatpackers JBS SA (JBSS3.SA) and BRF SA (BRFS3.SA), however, have said they are struggling to pass on higher feed costs to consumers in their home market, though JBS has benefited from its U.S. operations.

 

Prices for some beef cuts rose by as much as 30% over the past year in Brazil due to tight cattle supplies and strong export demand, said Guilherme Malafaia, an official at the government's agricultural research agency, Embrapa. Together with Hong Kong, China buys 60% of all beef exported by Brazil.

 

For Brazilians, though, high prices have pushed domestic consumption down by 14% from pre-pandemic levels, to a 25-year low. Instead, consumers turned to pork, chicken and eggs, which are historically cheaper.

 

Brazil's per-capita pork consumption rose by 5% while chicken consumption rose by 6% in 2020 from the year before, said Marcelo Miele, a pork and poultry researcher at Embrapa. Brazilians now eat 251 eggs per person per year, the highest ever, he said.

 

Butchers are suffering from falling sales as some consumers cut back on beef or shift to less expensive meats.

 

With U.S. prices for "middle meats" like T-bone steaks and rib eyes increasing sharply, meat cutter Shawn Smith said more people are buying ground beef at his store in Albany, Oregon.

 

Argentine butcher Pablo Alberto Monzón, 26, said meat sales have dropped by a third at his shop in a working-class neighborhood of Buenos Aires. Fewer customers are coming in, and those who do find that their money does not go far.

 

“People who before could buy short ribs for the grill now make do with flank steak,” Monzón said.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Cryptos turn choppy as bounce momentum ebbs

Cryptocurrencies slipped on Thursday but without falling through recent lows, as enough traders clung to hopes that the asset class can claw its way back from last week's plunge.

 

Bitcoin dropped 4% in Asia to about $37,600 and the next biggest crypto token, ether , was down 7.5% at $2,676 - leaving both well above deep week-ago troughs but miles shy of the record highs they scaled in April.

 

Some analysts said the falls felt relatively modest compared with recent volatility and pointed to a market finding a floor, though it is clear regulatory attention and wavering enthusiasm from Tesla boss Elon Musk are going to remain major risks.

 

"The big cleanout has probably occurred," said IG Markets analyst Kyle Rodda, as trade had calmed down somewhat.

 

"People lose patience and bail along the way, but ... it looks like its starting to form a bit of a bottom here," he said. "I'm sure that there are still some nervous folks out there who're hoping and wishing that their long crypto positions are going to crawl back into the green."

 

Bitcoin's drop was triggered by China's efforts to crack down on mining and trading of cryptocurrencies and weighed by Tesla suspending its willingness to accept it as payment due to environmental concerns about energy use. read more .

 

The U.S. Treasury Department has also called for requiring 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

 

"It is not a substitute for money," Vishnu Varathan, head of economics and strategy at Mizuho Bank, told the Global Markets Forum chatroom on Refinitiv Eikon.

 

"At best (it) is an alternative asset, albeit one without intrinsic value," he said, adding that blockchain technology and its potential "must not be conflated with crypto-currencies".

 

Such nagging doubts have kept bitcoin from closing above its 200-day moving average since it collapsed to hit last week's four-month low around $30,000. This week it has been supported around $37,000 but forged no higher than $40,904, while ether, which hit $1,730 last weekend, has attracted buyers above $2,500.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

The little engine that could, and the oil giant that couldn’t

Last December, when a week-old hedge fund named Engine No. 1 challenged Exxon Mobil to change its ways, laughter echoed through Wall Street circles, from the fund’s name that recalled a famous children’s book to its tiny, then-$40 million stake in what was once the world’s largest publicly traded company.

 

Just six months later, the fund delivered a massive blow that rippled throughout the oil-and-gas industry. Engine No. 1′s campaign forced Exxon to accept new board members who could bring about a reckoning over its business strategy and confront the risk of global climate change that many investors say Exxon has long been reluctant to address.

 

Companies with a market value of $250 billion like Exxon rarely face, much less lose, shareholder battles. But stakeholders familiar with Exxon's thinking said Wednesday's defeat was years in the making due to ongoing weak returns.

 

Institutional investors had grown frustrated with the company's approach to the energy transition, trailing global rivals who promised big spending on power generation, solar and wind. In addition, Exxon failed to recognize how the investment community had become more attuned to climate change issues, which helped Engine No. 1 sway big pension funds in California and New York to its side.

 

Sources familiar with the company's strategy say that Exxon was late to mount a defense against Engine No. 1, and even when it did, it concentrated on the threat to the company's generous dividend. But analysts had for months cautioned that Exxon's hefty indebtedness could put that dividend at risk, making its warnings of the fund's intentions less threatening.

 

"Exxon Mobil worked very hard to lose this battle" over years of inattention to climate change, said Robert Eccles, professor of management practice at Said Business School at Oxford University. In December, Eccles said he thought the activists had a chance to win a board fight.

 

Exxon did not respond to requests for comment. Company executives have said its scale and investment approach had weathered boom-bust cycles. In a statement on Wednesday, CEO Darren Woods said that Exxon has "been very actively engaged with our shareholders, sharing our plans and hearing their viewpoints and the key issues of importance to them."

 

A spokeswoman for Engine No. 1 declined to comment.

 

ENERGY EXPERIENCE WANTED

 

When the newly formed Engine No. 1 announced its campaign in early December, Exxon Mobil was closing out a disastrous 2020 due to the coronavirus pandemic that would end with $22 billion in losses.

 

Engine No. 1 saw an opportunity to push for changes to the company's board, which until this year had nobody - other than CEO Woods - with experience in the energy industry, with arguments about Exxon's spending and lack of an energy transition plan.

 

The fund's top executives Chris James and Charlie Penner undertook a lengthy effort to recruit potential directors with the credentials to challenge Exxon, according to people familiar with the matter, eventually settling on four people all with energy experience.

 

The fund was able to tap into investors’ discontent to turn the fight into a climate referendum that cost the two sides at least $65 million. CALSters, the California teachers’ retirement fund, supported the campaign from the beginning.

 

Exxon sought to blunt the fund's nominees by expanding its board and adding director Jeff Ubben, who runs a sustainable investing fund. It also sought to calm investors' climate concerns by increasing low-carbon initiatives and lowering the intensity of its oilfield greenhouse gas emissions.

 

The company also reversed course on a massive oil and gas expansion program, though analysts expect it to pick up the pace of spending next year.

 

By April, however, Engine No. 1 was lining up more allies. New York's $255 billion Common Retirement Fund announced it would support the dissident slate of directors, following California's $300 billion teachers retirement fund.

 

FOCUS ON DIVIDEND

 

Exxon was taking the threat more seriously by April, but focused on investor returns, warning in a shareholder letter that Engine No. 1 wanted the company "to pursue a vague and undefined plan - which we believe will jeopardize our future and your dividend."

 

The company has long prized its dividend, which during pandemic-driven oil price lows grew to a yield of more than 10%. With the company's debt load rising to more than $69 billion last year, analysts raised frequent questions about whether the dividend could be maintained as Exxon was being encouraged to cut costs.

 

"The biggest surprise to Exxon was how the 'defend the returns' strategy did not work," said one source familiar with the company's thinking.

 

The tide turned further against Exxon on May 14 after two near-simultaneous events. First was the release of a damning report from influential shareholder advisory firm ISS that criticized the company's failure to adjust its spending plans.

 

"Investors have regularly highlighted concerns about preparedness for an energy transition, yet the board did not take action decisive enough to prompt recognition from the market until after launch of the dissident's campaign," ISS said.

 

That was followed by a television appearance from Woods on CNBC, where investors said he looked unprepared for host David Faber's questions about the ISS report, Exxon's strategy and the board's lack of energy experience.

 

Exxon for years banked on the company's size and steady dividend to blunt investor criticism, even as it made a series of risky investments such as its purchase of XTO Energy ahead of a sharp decline in natural gas prices and a 2017 purchase of Texas shale properties as oil prices were slipping.

 

New York State Comptroller Thomas DiNapoli, in a statement on Wednesday, said the fund for years wanted assurance that Exxon's board took the climate crisis seriously "and was acting to put the company on a path to succeed in the low carbon economy, and for years received platitudes and gaslighting in response."

 

Blackrock Inc (BLK.N), the world's largest asset manager, which supported three of four dissident nominees, said in a statement on Wednesday that Exxon invested just $10.4 billion on lower-carbon energy technologies in the last 20 years, compared with more than $20 billion in overall expenditures in 2020 alone.

 

On Wednesday, the company recessed its annual general meeting for an hour, as it continued to count votes. Woods then answered pre-selected questions from investors for 40 minutes, far more than the previous year's annual meeting.

 

Among the questions was one about an International Energy Agency report that warned that investors should not fund new fossil fuel supply projects beyond this year if the world wants to reach net zero emissions by mid-century. Woods, however, said that “if you look at the report, it outlines the continued need for investment in oil and gas.”

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

U.S. trade chief Tai says U.S. faces ‘very large challenges’ on China

U.S. Trade Representative Katherine Tai said on Wednesday that the United States still faces “very large challenges” in its trade and economic relationship with China that require the Biden administration’s attention across the board.

 

Tai spoke with Reuters in an interview before her first virtual call with Chinese Vice Premier Liu He, a meeting in which she raised "issues of concern," according to her office.

 

"During their candid exchange, Ambassador Tai discussed the guiding principles of the Biden-Harris administration’s worker-centered trade policy and her ongoing review of the U.S.-China trade relationship, while also raising issues of concern," the USTR said.

 

China's commerce ministry described the talks as "a candid, pragmatic and constructive exchange".

 

"Both sides view the development of bilateral trade as very important. (Both sides) exchanged views on issues of mutual concern and agreed to maintain communication."

 

The meeting marked the first formal engagement between the trade chiefs of the world's two largest economies since U.S. President Joe Biden took office in January.

 

It came at a time when Biden has sharply criticized China on human rights abuses and sought to rally his Group of Seven rich nation allies to form a united front on China.

 

China's handling of the COVID-19 pandemic - which has now killed more than 3 million people worldwide - has also rankled the United States and its allies.

 

Biden on Wednesday ordered aides to investigate rival theories held by U.S. intelligence agencies on the origin of the virus, including the possibility of a laboratory accident in China. China said it supported a ‘thorough investigation’ but warned the United States to avoid politicizing the issue.

 

The Biden administration is conducting a comprehensive review of U.S.-China trade policy, ahead of the expiry of the Phase 1 deal at the end of 2021.

 

CHALLENGES 'STILL THERE'

 

Tai told Reuters the Phase 1 trade deal was important but only part of a complex relationship.

 

"The overall challenges that we have with China are also still there and they are very large," Tai said.

 

Tai said the Phase 1 trade deal should be seen in the context of "the overall U.S.-China trade, and economic relationship which is very, very challenging. And requires our attention all across the board."

 

The two countries signed the trade deal in January 2020 - just before the COVID-19 pandemic began. It calls for China to increase purchases of U.S. agricultural goods, manufactured products, energy and services by $200 billion over 2020 and 2021, compared with a 2017 baseline.

 

The deal eased a two-year tariff war between the United States and China waged by former President Donald Trump that aimed to change China's trade practices, although duties remain in place on hundreds of billions of dollars of trade.

 

The Biden administration has promised a similarly muscular pushback on China's state-driven economic model, with new investments in innovation to maintain a U.S. technological edge.

 

China fell about 40% short of its purchase targets in 2020, and is still lagging in its imports in 2021, with just seven months to go in the two-year deal.

 

Through 2020, China's total imports of covered products from the United States were $99.9 billion, compared with the commitment of $173.1 billion, according to the Peterson Institute for International Economics.

 

China also agreed to ease barriers in its financial services sector and agricultural biotechnology regulations, as well as to take steps to protect U.S. intellectual property.

 

The deal failed to address fundamental U.S. concerns about technology transfer and massive subsidies for state-owned enterprises - issues that the Trump administration had said it would address in a second phase trade agreement.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

Bayer sticks to $2 bln provision after Glyphosate ruling

Bayer (BAYGn.DE) said on Thursday it was not increasing its $2 billion in provisions after a U.S. judge rejected its class action plan to settle future claims related to its Roundup and other glyphosate-based weedkillers.

 

"We are determined to resolve the Roundup litigation and minimise the risk to our company from the existing and potential future lawsuits," Bayer Chief Executive Werner Baumann said in a speech published online.

 

"We remain open to settlement negotiations on the remaining lawsuits, as long as the terms are reasonable. However, we will review this approach in the future," he added.

 

A judge on Wednesday rejected Bayer's class action proposal, which would have provided compensation in return for placing limits on lawsuits. U.S. District Judge Vince Chhabria in San Francisco called the plan "clearly unreasonable." read more

 

Bayer shares fell 3.7% in early trading in Frankfurt on Thursday on disappointment at the failure of the plan to settle part of the legal risks from Roundup, which the Germany company acquired with its $63 billion purchase of Monsanto in 2018.

 

Announcing a new plan after the ruling, Bayer said it "will immediately engage with partners to discuss the future of glyphosate-based products in the U.S. residential market," which has been the source of most claims that Roundup caused cancer. read more

 

The company said it will continue to supply glyphosate products for agricultural users.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

Rwanda: Spenn Partners With Espoir to Promote Cost-Free Digital Payments

SPENN, a financial technology company with a cost-free mobile banking application powered by I&M Bank, has signed a partnership deal with Espoir Basketball Club valued at Rwf15 million to promote digital payments.

 

The one-year agreement will be implemented in the 2020/21 season with a possibility to extend the partnership in the future.

 

SPENN has the mandate to promote financial inclusion, by connecting the banked the unbanked population in Rwanda.

 

Participants at the signing in ceremony at Amahoro stadium.

 

Transactions that can be performed on the platform include sending and receiving money, opening a savings account with annual interest, performing global airtime purchases, bills payments, paying in-store and many more according to Norbert Haguma, the Country Manager of SPENN Rwanda.

 

Haguma added that SPENN also allows businesses to perform bulk payroll via SPENN Business and facilitates online payments via the SPENN e-commerce payment solution known as SPENN Connect.

 

He further revealed that the partnership with ESPOIR Basketball club will encourage all fans to explore the benefits of SPENN.

 

"Each time a fan is fully registered on SPENN, when using the referral code "espoir", Rwf500 is contributed to ESPOIR Basketball club. This is also an opportunity for ESPOIR Club fans to show how powerful the ESPOIR brand is. It is also a big step in the direction of the country's vision to monetize and support professional sports," he said.

 

Under the agreement, he noted, at least 20,000 fans for ESPOIR Basketball club will register in SPENN.

 

Pascale Mugwaneza, the vice president of Rwanda Basketball Federation, speaks during the event.

 

"The club has leadership and fans. We hope it will have more fans," he said.

 

Norbert Mwanangu, the General Manager-Retail Banking and Digital Experience at I&M Bank Rwanda Plc said that the Bank values cashless solutions saying that SPENN amongst the best solutions not only for their customers but also anyone in the market looking for convenience.

 

SPENN was launched in partnership with I&M Bank Rwanda Plc in 2018 and currently has more than 300,000 clients registered on the platform and is so far available in four countries across the globe.

 

"The Bank's partnership with SPENN will ensure continued offerings of simplified banking solutions and we are looking into preparations of business offers for SPENN users," he said.

 

Albert Tuyishime, the Vice President of ESPOIR Basketball club said that the club has 60 years of experience and will play a big role in marketing the SPENN product.

 

"We have platforms for our fans and we hope they will be even better organized. The one-year partnership with SPENN is the first step towards a sustainable partnership," he said.

 

He said that the partnership will also improve working conditions for players in competitions as the club gains more financial support thanks to the partnership.

 

The Vice-President of Rwanda Basketball Federation, Pascale Mugwaneza commended ESPOIR Club efforts in basketball development in Rwanda especially in raising youth's talents.

 

She said that the partnership between the club and SPENN is one of the ways to build the financial capacities of clubs in Rwanda.-New Times.

 

 

 

Kenya: Construction of Sh400m Tharaka Nithi County Headquarters Stalls Yet Again

Construction of the Sh400 million county headquarters in Kathwana has once again stalled due to lack of funds. Work on the five-storey building that started on June 3, 2015 was to be completed in three years.

 

County staff currently operate from makeshift offices. Governor Muthomi Njuki said yesterday the national government was yet to fulfil its 80 percent funding pledge towards the construction.

 

The building is one of the five counties headquarters offices being funded jointly by the national government (80 percent) and the devolved units (20 percent).

 

"The national government has continued to frustrate the contractor by failing to pay money for work done compelling the contractor to stop the work," said Governor Njuki.

 

The contractor, Terracraft Kenya Limited, is also demanding that money for the contract be ring-fenced in the budget as an assurance that funding for the project will not be interrupted.

 

The contractor is also seeking approval of contract extension application up to January 2022.

 

State-funded projects

 

For the work to proceed, the contractor is also demanding payment of money for the extended preliminaries, variations and revision of rates.

 

During an inspection tour of state-funded projects by the National Development Technical Coordination Committee led by the Interior Principal Secretary Karanja Kibicho in October last year, the team set January 30, 2021 as the completion date.

 

Dr Kibicho had assured that there would be no further delays in payment because the money had been budgeted for and urged the contractor to increase the workers on site in order to meet the deadline.

 

"The county commissioner should personally supervise the work in collaboration with the responsible county official in order to make sure that the building is complete by January 30," said Dr Kibicho.

 

The PS warned that the contractor would be prosecuted if he failed to meet the December deadline.

 

Renting office space

 

The remaining works include roofing, fixing of windows and doors, partitioning of rooms, general finishing and civil works.

 

Dr Kibicho also promised resumption of work on various stalled road projects including, the 30-kilometer-Chuka-Kaanwa-Kaare road that started in 2014 but only tarmacked six kilometres but nothing is yet to change.

 

Governor Njuki said he has also been updating the Presidential Delivery Unit on the status of the building but nothing seems forthcoming.

 

"The responsible government officers are letting the President down because he is expected to soon visit the county to commission the building among other projects including Kirubia Stadium and county commissioner's offices in Kathwana which are almost complete," said the governor.

 

Delays of the works has also compelled some officers who are supposed to operate from headquarters Kathwana to remain in offices in Chuka, over 30 kilometres away.

 

The county government also incurs huge expense renting office space in Kathwana.-Nation.

 

 

 

Malawi: Nyasa Big Bullets CEO Suzgo Nyirenda Plans to Launch Own TV Station

The new Chief Executive Officer (CEO) for Nyasa Big Bullets, Suzgo Nyirenda has hit the ground running in the club's commercialization drive in which he pledges plans of setting up its own television station.

 

The former Football Association of Malawi (FAM) general secretary -- who also served as deputy CEO for Confederation of Southern Africa Football Association (COSAFA) from 2016 to 2021 -- was officially unveiled by the club's president Conrad Buckle on Tuesday at a colourful ceremony held at College of Medicine Sports Complex in Blantyre.

 

Nyirenda said "time has come that all Bullets games should be streamlined live before launching our own Nyasa Big Bullets FC TV".

 

"It is possible and if there are any doubts, you have a CEO who will do it because I am determined. My objective is to turn the club's fortunes around and be recognised as a great brand -- not only in the country but on the African continent as well."

 

He added that for this to be achieved, he will formulate a robust strategic plan that will outline how best the club will earn its successful brand.

 

"Nyasa Big Bullets will develop its own business plan as well as the team's technical and youth development plans and very soon we will add a women's football team to the franchise.

 

"If there are any doubts, you have a CEO who is determined to do it. I realize it's not easy but with the team and the staff I have -- and with the support of the Board and the supporters -- we will make it."

 

He gave confidence to the Board and supporters that working as FAM GS and deputy CEO for COSAFA gave him an "impetus to understand the needs in football -- and commercialization in particular -- in line with club licensing requirements".

 

"We can grow our businesses exponentially if we partner and realize our mutual gains by maintaining the club's competitive edge.

 

"The huge following of this club -- in and beyond Malawi -- is unprecedented. The brand itself is very enormous. The rich history of Nyasa Big Bullets in terms of its successes in competitions and championships cannot go unnoticed.

 

"To hit the ground running, we will soon embark on a nationwide registration of our supporters to create verified numbers with which we can use to support the business together with our partners.

 

"We will continue to sorround ourselves with love and peace and our supporters will continue to remain our greatest asset and the key to our success throughout the coming years," he said.

 

In his remarks, the club's president Conrad Buckle said he was proud to lead a team that is phenomenal and enjoys the support of phenomenal fans.

 

He said the best the club's leadership -- including himself -- could do is to render total support in the commercialization drive.

 

He applauded the club's business partners such as CIC Africa insurance company, Castel Malawi, Kamuzu University of Health Science, MacSteel company, saying to realize their commercialization drive they need such collaboration.

 

"It has been a difficult journey to roll out the commercialization," he said. "The journey is still long as we have a massive task ahead of us but together we will achieve great things to get Nyasa Big Bullets into a continental force.

 

"I thus unveil to you our new CEO who needs total support from the Nyasa family as we strive to help this club maintain its rich history of success in all its endeavors," he said.

 

Guest of honour was Alfred Gunda, the FAM CEO who replaced Nyirenda in 2016 and he welcomed Nyirenda back home, saying "east or west, but home is the best".

 

"The country's football will gain from your experience as head of competitions at COSAFA, that looks after 14 Member countries will definitely.

 

"The huge experience gained there is what you will add on to the success of Nyasa Big Bullets -- a winning brand with 40 titles to its belt -- 16 as league titles and 24 cup competitions.

 

"Congratulations for taking up the mantle to lead one of the most top clubs in the country and enhance its legacy as the most decorated by the honours it has attained in all these years.

 

"You are also a well decorated football administrator who is fit for this post and the doors you will knock of the potential partners will easily be opened."

 

He also appealed to Nyirenda that time has come for the Bullets to "make it a regular participant of the continental [Confederation of African Football] competitions and to stand out as one of the best".

 

"Be assured of FAM's support and let me recognise that Nyasa Big Bullets are the first to fully embrace club licensing and commercialization, which will motivate other clubs to follow."

 

Bullets always contribute excellent material for the national football team and is the only club that has exported most players to foreign clubs, who were identified through the Flames matches as well as the club's participation in CAF competitions.-Nyasa Times.

 


 


 


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

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Blog:            <https://bullszimbabwe.com/category/blogs/bullish-thoughts/> www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:      <http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimbabwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA> www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

 

 


 

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.

 


 

 


(c) 2021 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:  <mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77 344 1674

 


 

 

 

 

 

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