Major International Business Headlines Brief::: 01 November 2021

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Major International Business Headlines Brief::: 01 November 2021

 


 

 


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

 


 

 


ü  Thailand reopens to vaccinated tourists from over 60 nations

ü  UK steel makers 'left behind' as US ends trade war

ü  How Japan's new PM is promising a 'new capitalism'

ü  Volvo shares accelerate on stock market debut

ü  Biden to tout 'largest investment' in climate in Glasgow

ü  Strong tech support could help sell Congress on global tax rules -Yellen

ü  Election surprise lifts Nikkei, Fed keeps dollar bid

ü  Sega, Microsoft explore cloud gaming alliance

ü  China's giant state-owned companies struggle to align climate rhetoric
with reality

ü  Emirates to hold talks with Boeing at Dubai Airshow over 777X delays

ü  Goldman Sachs brings forward U.S. rate hike projection by a year

ü  Jewellery maker Pandora lifts outlook as U.S. sales continue to surprise

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


Thailand reopens to vaccinated tourists from over 60 nations

Tens of thousands of travellers are expected to arrive in Thailand today as
the country reopens to tourists after 18 months of Covid restrictions.

 

Vaccinated tourists from more than 60 "low-risk" nations are allowed to
enter the country and avoid hotel quarantine.

 

Tourist numbers are forecast to jump to as much as 15 million next year,
bringing in more than $30bn (£22bn).

 

However, much of country still faces restrictions, with only around 42% of
the population fully-vaccinated.

 

'Light at the end of the tunnel'

Thailand is still registering almost 10,000 Covid infections a day.

 

"It's like seeing a very dim light at the end of the tunnel - we haven't
been able to work in two years," tour guide Chaiyagorn Boonyapak told the
BBC. But he and his fellow tour guides haven't been contacted by customers
and tour companies yet and it could take a month until tours are back up and
running again.

 

"We don't know if [the government] can really open the country smoothly but
I hope they can do it. We would very much love to get back to work again."

 

The coronavirus pandemic hammered Thailand's economy, which would previously
attract 40m tourists a year. Last year, tourist arrivals were down more than
80%.

 

Airports serving Bangkok and Phuket are among those opening to countries
including UK, China, Japan, the US and most of Europe.

 

The Thai government predicts revenues to rebound to their pre-pandemic
levels by 2023, although many industry experts say China's ongoing border
closures will hamper the sector's recovery.

 

Before the pandemic, Chinese tourists made up the biggest number of
tourists, with some 12m visitors arriving from China in 2019.

 

Wiwan Siriwasaeree owns TALES Khaosan, a small hostel in the heart of
Bangkok's famous tourist street Khaosan Road. She isn't optimistic about the
prospect of tourism rebounding to pre-pandemic levels:

 

"I thought to myself what would I do if the situation in Khoasan doesn't get
back to the way it used to be, I'm quite fearful about that.

 

"We fear that after we let the tourists in and the new Covid-19 cases spike
again, will we go into another lockdown? I'm not so confident about the
situation," she said.

 

Peeti Kulsirorat, who owns a restaurant in the area, is also fearful that
visitors will lead to a spike in cases: "Then the tourism industry will be
blamed as the villain again. It will be the scapegoat just like the way
drinking alcohol is."

 

Mr Kulsirorat said ongoing restrictions - including the inability to sell
alcohol in much of the country - will have a negative impact on people's
holidays: "The complete tourism experience has to come in a package of both
ambience and convenience.

 

"If they come here and many things are banned and closed, what's the point
of coming here? It will eventually slow down and people will start to get
bored with all the restrictions."

 

Meanwhile, on the popular tourist island of Phuket, the pandemic has brought
the economy to a standstill.

 

Dit, whose family owns a sun lounge and juice bar on the island's Kamala
beach said they were making about $150 a day in 2019.

 

"We had to use our savings, grow vegetables and catch fish to survive," he
said.

 

Now, after months of closure the juice bar has reopened and is generating
about $30 each day: "We don't expect all the deck chairs to be filled
straight away."-BBC

 

 

UK steel makers 'left behind' as US ends trade war

The UK has been "left behind" according to steel makers after the US agreed
to end a trade war over items that also included whiskey and
Harley-Davidsons.

 

President Biden has signed a deal to end tariffs on steel imports from the
EU, which were imposed by his predecessor Donald Trump.

 

But the agreement does not cover exports from the UK, putting British
steelmakers at a disadvantage.

 

Trade body UK Steel said a deal for British producers was "sorely needed".

 

The tariffs, which came into force in 2018, nearly halved British steel
exports to the US, Gareth Stace, director general of UK Steel, said.

 

The US is the second-largest market for British-made steel. But the new deal
will put UK producers at a competitive disadvantage compared to European
rivals who will be able to ship their products to the US without paying
import taxes.

 

Booze and power boats

In return, the EU removed retaliatory tariffs that it had put on whiskey,
power boats and Harley-Davidson motorcycles.

 

"Whilst it is promising to see the US take steps to open up access to its
steel markets again, there is significant concern that UK producers have
been left behind in this process and continue to wait for their own deal,"
Mr Stace said.

 

"The substantial competitive advantage that this deal provides EU steel
producers over UK ones will undoubtedly result in our export orders to the
US market being lost to EU exporters."

 

But International Trade Secretary Anne-Marie Trevelyan has said the UK and
US are in talks to remove "damaging tariffs" from British steel exports.

 

Ms Trevelyan tweeted: "We welcome the Biden administration's willingness to
work with us to address trade issues relating to steel and aluminium.

 

"It is encouraging the US is taking steps to de-escalate this issue."

 

The US and EU hope the pact will limit the amount of so-called "dirty" steel
from countries such as China, where steel production accounts for as much as
20% of all CO2 emissions. The country currently produces more than half of
the world's steel.

 

"Together, the United States and European Union will work to restrict access
to their markets for dirty steel and limit access to countries that dump
steel in our markets, contributing to worldwide over-supply," the White
House said.

 

"The arrangement is, of course, open to all like-minded partners. Steel
manufacturing is one of the highest carbon emission sources globally,"
Ursula von der Leyen, head of the European Commission said.

 

In a statement, a Department for International Trade spokesperson said: "The
UK is committed to addressing both global steel overcapacity and
decarbonisation, and we remain focused on agreeing a resolution that sees
damaging tariffs removed to the benefit of businesses on both sides of the
Atlantic."

 

"We welcome the Biden Administration's willingness to work with us to
address trade issues relating to steel and aluminium, and it is encouraging
that the US is taking steps to de-escalate this issue."-BBC

 

 

 

How Japan's new PM is promising a 'new capitalism'

Japan's new prime minister, Fumio Kishida, has sold his plan to redistribute
wealth in the country as the "new capitalism".

 

But some critics on social media suggest the plan sounds more like socialism
to them - even dubbing it Japan's "common prosperity", referring to a key
policy from the Chinese Communist Party.

 

"Does he even understand how capitalism works?" tweeted Hiroshi Mikitani,
the chief executive of Rakuten - Japan's huge online retailer and answer to
retail giant Amazon.

 

Mr Mikitani was particularly angry about the prime minister's proposal to
raise capital gains tax (CGT); the government's levy on profits made from
investments, calling it "double taxation".

 

The Rakuten boss wasn't alone in expressing his dislike for the
controversial new proposal, many feared it could swiftly kill-off a recent
wave of fresh interest in the stock market from small, retail investors.

 

Former Japanese Foreign Minister Fumio Kishida poses for a picture following
a press conference.

 

In Japan, the election of a new prime minister traditionally kick-starts a
stock market rally, but instead Mr Kishida's arrival in October, (ahead of
the lower house elections) saw the Nikkei 225 promptly sink.

 

 

The index fell on eight-consecutive days, a drop that has now been labelled
'the Kishida shock'.

 

In response, Mr Kishida swiftly backtracked on his CGT proposal, saying that
he would instead not seek to change the country's taxes on capital gains and
dividends, for now.

 

This embarrassing policy U-turn aside, there is already a distinct contrast
between Mr Kishida's economic policy style and the approach of his
predecessors; Yoshihide Suga and Shinzo Abe.

 

The pair both pushed Abenomics, the now famous economic policy known for its
so-called "three arrows": aggressive monetary easing, fiscal consolidation
and growth strategy. Their aim was to use these three levers to jolt the
Japanese economy out of decades of slow-to-no growth mode.

 

During these two leaders' tenure they had some success - the country's stock
market has more than doubled in value. When Mr Abe became the country's
prime minister for the second time in December 2012, the Nikkei 225 was
below 10,000 yen. In February this year, it topped 30,000 for the first time
since 1990.

 

The Nikkei has taken three decades to recover from the crash of the late
1980s which resulted in decades of economic decline for the country.

 

Salaries not keeping pace

However, there are some harsh critics of the Abe strategy - including Mr
Kishida - who argue Abenomics only made the rich in Japan richer. They want
to see wealth shared out among the population more widely.

 

Despite all the hype and international attention surrounding Abenomics,
ordinary citizens have not felt much benefit from the policy. Some say it's
even caused the wealth gap between the rich and poor to widen. (That's
despite one metric, the Gini coefficient - which measures inequality in
income distribution - narrowing slightly in the past decade.)

 

One of the reasons people don't feel they have more money in their pockets
is because the average salary has hardly grown over the last three decades.

 

Average Japanese wage

Image caption,Japanese workers' take-home pay has improved very little over
the last three decades

Average wages in Japan have stagnated versus countries like the US and
Germany over the last three decades, according to The Organisation for
Economic Co-operation and Development data.

 

There has been limited progress in productivity metrics too, Japan's gross
domestic product per capita - which is a country's economic output per
person - has fluctuated but it is at the same level today as it was in 1994.

 

In his first policy speech in parliament, Mr Kishida repeated the word
"bunpai" or "distribute" 12 times. In comparison, Mr Abe used "seicho" or
"growth" 11 times and Mr Suga said "kaikaku" or "reforms" 16 times.

 

But there are economists and investors who believe that Mr Kishida's sharp
criticism of Abenomics was just a ploy to win over voters' support ahead of
the general election and that there will be no radical changes.

 

"I doubt he has fully explained his economic policies. But by looking at who
he appointed - Ms Takaichi as the policy chief and Mr Amari as the Secretary
General - it indicates that Abenomics will likely continue under Mr
Kishida," says investor, Aya Murakami.

 

Sanae Takaichi was a contender in the ruling party's leadership race, backed
by former prime minister Shinzo Abe, while Akira Amari was an economy
minister under Mr Abe and one of the architects of Abenomics. Mr Amari was a
controversial appointment as he was embroiled in a corruption scandal in
2016 and after losing his constituency seat in this weekend's election has
reportedly offered to resign from his post.

 

Delivering for workers

Whether Japan returns to Abenomics or not, now that Mr Kishida is in office
the most pressing question will be how should he handle growing discontent
among Japanese workers?

 

Several listed Japanese companies have posted record profits in recent
years, leading to criticism for failing to pass back any of those gains to
their hard-working employees with commensurate pay rises.

 

"Japan's growth hasn't been strong enough to distribute wealth," according
to investor, Ms Murakami. "They made profits abroad, not at home, so it is
very difficult for companies to distribute [this money] when the profits
weren't generated domestically," she adds.

 

She supports the party's policy chief Ms Takaichi's recent proposal to tax
companies which are hoarding cash. "At the moment, there are 2,500 companies
that are listed in the Tokyo Stock Exchange but over 10% of them have cash
and deposits that are bigger than their market capitalisation, or they have
cross-shareholdings," says Ms Murakami. "They should be encouraged to invest
that money to boost growth at home through taxation policies."

 

When Kishida was elected as leader he vowed to "listen to the voices of the
people" but backtracked on his plan to raise capital gains tax less in just
a couple of weeks. So, it remains to be seen whose voices now - those of the
investors or the workers - he will choose to listen to most closely, to set
the tone for his policymaking.-BBC

 

 

Volvo shares accelerate on stock market debut

Swedish car company Volvo is now valued at more than $22bn (£16bn) after its
shares jumped in the first hours of trading of its market debut.

 

Volvo, majority-owned by Chinese firm Geely, offered up shares in a slice of
the company on the Stockholm stock exchange on Friday.

 

Shares jumped from an initial 53 Swedish crowns to 65 crowns on Friday.

 

Volvo boss Hakan Samuelsson said funds from the float would help it achieve
its goal to be fully electric by 2030.

 

US automotive giant Ford sold Volvo to Geely for $1.8bn in 2010, which
helped turn around the Gothenburg-based brand's fortunes as it rode the wave
of popularity of SUVs.

 

Geely will remain the largest single shareholder in the carmaker after the
public listing.

 

"Our industry is changing and we strive to lead that transformation. That is
why Volvo Cars has an ambitious strategy to become fully electric by 2030,"
Mr Samuelsson said on Friday.

 

"Today's listing will help us get there," he added.

 

Michael Hewson, analyst at CMC Markets, said: "Volvo's
stronger-than-expected first day of trading illustrated that there was good
investor demand for the company's electric vehicles plan.

 

"That being said, the initial valuation was at the lower end of estimates,
largely over concerns about the global semiconductor shortage.".

 

He said Volvo's valuation was "pretty decent, even if it does pale into
insignificance when compared to Tesla".BBC

 

 

 

Biden to tout 'largest investment' in climate in Glasgow

(Reuters) - President Joe Biden on Monday will try to assure world leaders
that the United States can keep its promise to slash greenhouse gas
emissions by more than half by the end of the decade, even as the key
policies to ensure those reductions remain uncertain, his top climate aides
said.

 

Biden will join leaders from over 100 countries in Glasgow for the start of
the COP26 climate conference, which kicks off on the heels of the G20 summit
in Rome that concluded with a statement that urged "meaningful and
effective" action on climate change but left huge work for negotiators to
ensure an ambitious outcome. read more

 

National Climate Adviser Gina McCarthy said Biden was committed to
delivering on that goal in large part through a key budget bill that would
unleash $555 billion in climate spending that awaits a vote in Congress
after months of fraught domestic negotiations.

 

"Here in Glasgow, he's renewing the United States’ commitment to take swift
and decisive action, including through his Build Back Better framework,"
McCarthy told reporters.

 

"It's the largest investment to combat the climate crisis in American
history. And it's going to let us reduce emissions well over a gigaton --
that's 1 billion metric tons -- in 2030."

 

Biden said on Sunday that his Build Back Better climate and social spending
bill will be voted on sometime this week, "God willing."

 

The House of Representatives has not yet confirmed a date for a vote on the
legislation.

 

McCarthy also addressed concerns around a Supreme Court announcement late
Friday that it would review the Environmental Protection Agency's authority
to regulate greenhouse gas emissions, potentially undermining U.S. climate
goals. read more

 

"We're confident that the Supreme Court will confirm what those have before
them, which is EPA has not just the right but the authority and
responsibility to keep our families and communities safe from pollution,"
McCarthy said.

 

Biden will also announce on Monday a long-term strategy laying out how the
U.S. will achieve a longer-term goal of net-zero emissions by 2050 and
announce that he will work with Congress to launch a $3 billion program in
2024 aimed at helping developing countries adapt to and manage the impacts
of climate change through locally-led measures.

 

The Thomson Reuters Trust Principles.

 

 

Strong tech support could help sell Congress on global tax rules -Yellen

(Reuters) - U.S. Treasury Secretary Janet Yellen said she expected U.S. tech
giants to broadly support the reallocation of taxing rights agreed to by
nearly 140 countries as part of a broader deal on global taxes, saying the
impact on U.S. companies should be minor.

 

Yellen told Reuters on Sunday the support of the big global players should
help foster bipartisan support among U.S. lawmakers for what is known as
Pillar 1 of the tax deal negotiated by the Organization for Economic
Cooperation and Development.

 

Leaders of the world's 20 biggest economies (G20) this weekend backed the
overall OECD deal, which also calls for implementation of a global minimum
corporate tax of 15% by 2023.

 

Yellen said the minimum tax part of the deal would provide welcome certainty
for large internet companies like Alphabet Inc's (GOOGL.O) Google,
Amazon.com Inc (AMZN.O) and Facebook Inc (FB.O), by eliminating the
complicated web of digital services taxes they face in many countries, and
could help boost support for the broader deal.

 

U.S. lawmakers are expected to approve the global minimum tax part of the
deal as part of a broad, Democratic-only spending bill winding its way
through Congress, Treasury officials said.

 

The second component on the reallocation of taxes is still being finalized
but will require separate passage.

 

It has already drawn criticism from Republican lawmakers and some
non-digital companies, but Yellen said she believed Congress would
eventually "come around," especially given the support of big companies.

 

Senior Senate Republicans have argued that the approach agreed to in
principle by the OECD would require a new international tax treaty, which
would need Senate ratification by a two-thirds majority.

 

"I think they’re going to be telling members of Congress that they like this
agreement and they can live with it," Yellen said of the tech companies.
"When you have businesses supportive, rather than lobbying against
something, I think that will be helpful."

 

Initial calculations by the Treasury Department showed little harm to
U.S.-based multinational corporations, even if some of their taxed profits
were allocated elsewhere since they would be eligible for other tax credits.

 

"We’ve done some calculations that suggest the impact is small," she said in
an interview en route to Dublin from the G20 meetings in Rome. "In the end,
it depends on exactly where the revenue ends up coming from."

 

Yellen arrived late on Sunday in Ireland, a low-tax country that overcame
domestic reservations to back the global mininum tax deal - a move that will
require it to raise its current rate to 15% from 12.5%.

 

Yellen said she was confident the Irish economy would weather the change,
given its well-educated workforce and positive business environment, plus
Ireland's status as the only English-speaking country in the European Union.

 

"There’s real economic activity that goes on in Ireland. It’s not just a tax
haven," she said. "I think Ireland will still be in a very favorable
position."

 

The Thomson Reuters Trust Principles.

 

 

 

Election surprise lifts Nikkei, Fed keeps dollar bid

(Reuters) - Asian stocks wavered on Monday, with Japanese companies catching
a post-election boost but weak Chinese data weighing on the broader mood
ahead of policy meetings in the United States, Britain and Australia that
are set to define the rates outlook.

 

Japan's Nikkei (.N225) rose 2.3% to a one-month high after Prime Minister
Fumio Kishida's Liberal Democratic Party won a unexpectedly comfortable
victory, raising hopes for stability and stimulus in the term ahead. read
more

 

Trade elsewhere was soft, with MSCI's index of Asia-Pacific shares outside
Japan (.MIAPJ0000PUS) dragged 0.4% lower by selling in Hong Kong after
weekend data showed a sharper-than-expected contraction of Chinese factory
activity. read more

 

S&P 500 futures and FTSE futures drifted 0.2% higher, European futures rose
0.6%. Bond markets were calm following the brutal sell-off in short-term
rates last month as surging inflation reshaped investors' outlook.

 

Commodities also stabilised, with a slight easing of oil prices and a
further drop in Chinese coal prices pushing them 50% below last month's
record high. read more

 

"I think we may come out of (the) week past peak yield volatility, or at
least, past peak rate hike fever," said NatWest Markets strategist John
Briggs.

 

"A lot of the things that went parabolic and took market rate hike
expectations to a boil are at least looking like they are calming a bit."

 

The yield on two-year Treasuries, which had soared to an almost 20-month
high of 0.5640% last week was last up about 1.6 basis points at 0.5169%.
Benchmark 10-year Treasury yields were steady at 1.5627%.

 

In currency markets, the dollar held sharp Friday gains and traded firmly in
the Asia session. It rose as far as 114.26 yen and climbed 0.1% to $1.1546
per euro .

 

Brent crude futures traded 0.3% lower at $83.47 a barrel and U.S. crude fell
0.4% to $83.20.

 

LIVE MEETINGS

 

The Fed is the highlight of a week full of central bank meetings likely to
move markets, with policy adjustments possible at the Bank of England and
Reserve Bank of Australia.

 

The Fed, which concludes a two-day meeting on Wednesday, is expected to say
it will start to taper bond purchases, though markets' focus is on clues
about rates lift-off.

 

Fed funds futures 0#FF: are pricing hikes beginning early in the second half
of 2022 and Goldman Sachs on Friday pulled forward its hike forecast to July
next year from the third quarter of 2023.

 

"While maintaining the view that most of the inflation we are seeing will
prove transitory, a risk management mindset has taken over, and developed
market central banks are now changing tack," analysts at Goldman Sachs said
in a late-Friday note.

 

"The Bank of England looks likely to raise rates (and) the Reserve Bank of
Australia appears to have abandoned its yield curve peg."

 

Swaps pricing points a better-than-even chance of the Bank of England hiking
on Thursday while the Reserve Bank of Australia will likely make some sort
of guidance adjustment after again declining to defend its yield target on
Monday.

 

Nevertheless, a bid crept back in to Australia's battered bond market,
lifting three-year Australian government bond futures 18 ticks to 98.780.

 

Sterling edged to a two-week low of $1.3663.

 

Ahead on the data front are purchasing managers index figures in
Scandinavia, Britain and the United States.

 

Asian readings were mixed, with Caxin's survey confounding Sunday's soft
official reading and surveys in Thailand, Malaysia, Vietnam and Indonesia
strong, against a slowdown in South Korea. read more

 

Gold nursed Friday losses against a stronger U.S. dollar and bought $1,784
an ounce. Bitcoin held its $60,000 support level.

 

The Thomson Reuters Trust Principles.

 

 

 

Sega, Microsoft explore cloud gaming alliance

(Reuters) - Sega Sammy Holdings (6460.T) on Monday said it is exploring a
strategic alliance with Microsoft (MSFT.O) to develop big budget titles
using the Xbox maker's cloud gaming tech, driving anticipation the move
could signal a deeper tie-up.

 

Tokyo-based Sega is exploring making titles with global reach on Microsoft's
Azure cloud platform, it said in a stock exchange statement without
providing further details, including whether a deal would involve
exclusivity for the titles or capital investment.

 

Sega shares jumped 6% in morning trading.

 

Microsoft's own major cloud gaming initiative is available via the Xbox Game
Pass, a cross-platform subscription service which features Sega titles such
as the hit "Yakuza" series.

 

Cloud gaming cuts ties to bulky hardware but requires a fast internet
connection. Deep pocketed Microsoft's push into the nascent sector comes as
Xbox is widely seen as being on the backfoot in the console battle with
Sony's (6758.T) PlayStation.

 

"By working with Microsoft to anticipate such trends as they accelerate
further in future, the goal is to optimise development processes and
continue to bring high-quality experiences to players using Azure cloud
technologies," Sega said.

 

A bid for "Sonic the Hedgehog" publisher Sega by Microsoft has been rumoured
for decades. Japan, the world's third largest gaming market and a major
innovator in the industry, remains a weak spot for the Redmond,
Washington-based firm.

 

The two firms have a long history of partnership with Monday's announcement
coming after a string of critically acclaimed recent releases from Sega
including in the "Persona" and "Total War" series.

 

Sega, which abandoned its own console business after a string of flops, is a
prolific maker of "pachinko" machines for gambling and has flagged its
ambitions to widen the appeal of its video games.

 

The Thomson Reuters Trust Principles.

 

 

 

China's giant state-owned companies struggle to align climate rhetoric with
reality

(Reuters) - Ambitious pledges from China's leaders to cut emissions have put
its giant, carbon-intensive state corporations under pressure to respond,
but they are at risk of falling short amid confused policy signals and other
constraints.

 

When Chinese President Xi Jinping said last September that the world's
biggest source of greenhouse gases would slash emissions to "net zero" by
2060, attention turned to China's state-owned enterprises (SOEs).

 

China has already submitted updated climate targets to the United Nations as
a new round of climate change talks gets under way in Glasgow. The next
challenge is working out how to implement them.

 

However, the struggles facing China's giant firms will make it harder for
Beijing to offer stronger pledges and smooth the way for a more ambitious
programme of global emissions cuts - especially as it negotiates its way
through crippling power shortages.

 

"State firms are busy drafting their plans and trying to set their targets,
and some of them are already creating more detailed planning for the
transition," said Ma Jun, director of the Institute of Public and
Environmental Affairs (IPE), which tracks the environmental and climate
records of big corporations in China.

 

"How to ensure that they can fulfil other demanding targets while in the
meantime achieving climate targets needs a real solid transitioning
strategy, and so far there are still major gaps," Ma added.

 

IPE has assessed 58 listed units of Chinese state-owned enterprises from
sectors such as steel, petrochemicals, electric power and aviation, covering
more than 1 billion tonnes of annual emissions.

 

The study found that although they are generally ahead of their private
sector counterparts, some are lagging, and on indices such as energy
efficiency, sectors like steel are still behind global rivals, Ma said.

 

Of the 58, 91% have disclosed climate and emissions data in their official
reports. More than half have taken action to reduce emissions, but only 16%
so far have announced targets.

 

Meanwhile, just six have issued formal "climate declarations", including
giant power generators like Huaneng (600011.SS), Huadian (600726.SS) and
Datang (601991.SS), all of which have vowed to bring emissions to a peak by
2025, earlier than the national 2030 goal.

 

Three others - Baowu Iron and Steel (600019.SS), China's biggest steelmaker
- as well as the two biggest oil and gas suppliers PetroChina (601857.SS)
and Sinopec (600028.SS) - have all promised to hit "net zero" around 2050, a
decade earlier than the national target.

 

According to IPE data, Sinopec scores highest among Chinese SOEs when it
comes to data disclosure, targets and specific actions relating to climate
change, and ranks 35th globally, behind the likes of Dell and Apple.

 

In a report published last month, IPE said the average score in the Greater
China region is significantly lower than the rest of the world.

 

SOCIAL RESPONSIBILITIES

 

SOEs play a big role in China's top-down political system, and Xi's pledge
last year to neutralise a 10 billion-tonne annual carbon footprint prompted
associations from a wide range of high-emitting industries to draw up
roadmaps.

 

But they are also compelled to meet other "social responsibilities",
including the guarantee of energy and raw material supplies, as well as
wider goals such as employment and social stability.

 

Crippling power shortages in recent weeks are seen as a sign that in a
crisis, Chinese firms will quickly return to fossil fuels because the system
gives them no other option.

 

Some critics - including policy researchers at state think tanks - say
China's targets have not put enough pressure on big firms, with coal
consumption only set to fall in 2026 and local authorities still allowing
coal power capacity to increase.

 

China's structural reliance on coal - caused in part by an inflexible power
market and pricing system - also makes it difficult for enterprises to
source renewable power.

 

Many enterprises have no choice but to buy electricity from state coal-fired
power plants, with local governments seeking to protect jobs and economic
interests.

 

"There's always been an incentive for provinces to build within the province
and trade amongst themselves, when really what they should be doing is
making use of the transmission lines," said Matt Gray, analyst with climate
think tank TransitionZero.

 

Though steel firms, for example, have been encouraged to switch from blast
furnaces to cleaner electric arc furnace technology in order to slash
pollution, they are still forced to rely on coal-fired electricity.

 

Solar and wind power lost because of a lack of grid access also remains a
bigger problem than regulators admit, according to a report by environmental
inspectors this year.

 

"If we really want renewables to really function, we need a lot more support
- the whole (electric power) system needs to be transformed," Ma said.

 

The Thomson Reuters Trust Principles.

 

 

 

Emirates to hold talks with Boeing at Dubai Airshow over 777X delays

(Reuters) - Emirates will hold talks with Boeing (BA.N) over the delays to
its 777X jetliner before and during this month's Dubai Airshow, the
state-owned airline's chairman said on Monday.

 

The airline has repeatedly lambasted Boeing this year over the twin-engined
jumbo, which is at least three years behind its originally planned arrival.

 

Asked by Reuters if Emirates would hold talks with Boeing at the five day
air show that starts November 14, Sheikh Ahmed bin Saeed Al Maktoum said:
"There will be a discussion...before and during the air show."

 

Emirates last month warned that the uncertainty would cause significant
disruption for one of the world's biggest carriers, with its President Tim
Clark saying then he did not know when the first of the 126 777X jets
Emirates has ordered would arrive.

 

Emirates is a launch customer for the 777X which it will use to replace the
777 jets that are the backbone of its all-wide-body fleet. Boeing had
orginally planned to deliver the 777X in June 2020 but is now targeting late
2023.

 

In April, Sheikh Ahmed said that some of the 126 777X jets ordered could be
swapped for smaller Boeing 787 Dreamliners.

 

Emirates already revised its order for the 777X in 2019, cancelling orders
for 24 of the jets as part of a deal that saw it agree to buy 30
Dreamliners.

 

Sheikh Ahmed, a senior member of the Dubai's ruling family, also told
reporters at a Dubai news conference that he expected to see "good deals"
for civil and military contracts announced at the air show, without
disclosing details.

 

He declined to say if Emirates would make any announcements.

 

The biennial show, this year’s biggest aerospace trade show and a spectacle
for business deals worth billions of dollars, will take place from Nov 14 to
18 under capacity restrictions due to the coronavirus pandemic.

 

The Thomson Reuters Trust Principles.

 

 

 

Goldman Sachs brings forward U.S. rate hike projection by a year

(Reuters) - Goldman Sachs has brought forward its forecast by a year to July
2022 for the first post-pandemic U.S. interest rate hike, as the investment
bank expects inflation to remain elevated.

 

"The main reason for the change in our liftoff call is that we now expect
core PCE inflation to remain above 3% — and core CPI inflation above 4% —
when the taper concludes," Goldman's chief economist, Jan Hatzius, wrote in
a client note.

 

Federal Reserve policymakers are expected to announce plans to start
tapering the central bank's $120 billion in monthly purchases of Treasuries
and mortgage-backed securities at the end of their two-day policy meeting on
Wednesday.

 

"Large surprises on the virus, inflation, wage growth, or inflation
expectations, could prompt a revision, but we think the hurdle for a change
in either direction is high," said Hatzius.

 

Goldman Sachs also expects a second interest rate hike in November 2022 and
two rate increases each year after that.

 

In the wake of Friday's inflation data, fed fund futures fully priced in a
quarter-point tightening by July 2022 and another rate increase by December.
read more

 

The Thomson Reuters Trust Principles.

 

 

 

Jewellery maker Pandora lifts outlook as U.S. sales continue to surprise

(Reuters) - Pandora (PNDORA.CO), the world's largest jewellery maker by
production capacity, on Monday lifted its sales and profit margin outlook
for the year, citing a strong performance in the third quarter.

 

Pandora has benefited as shops reopened this year after lockdown
restrictions and has seen its sales top pre-pandemic levels as U.S. shoppers
in particular have splashed out as massive government stimulus and
vaccinations against COVID-19 fuelled spending on goods and services. read
more

 

For 2021, the Danish company now expects organic sales growth of 18-20%, up
from a previous forecast of 16-18%, and an earnings before interest and tax
(EBIT) margin of 24-24.5%, up from a previously forecast 23-24%.

 

"COVID-19 and the unusually high level of U.S. growth continue to create
increased uncertainty around the guidance," it added.

 

Pandora, best known for its silver charm bracelets, said third-quarter sales
came in at 4.73 billion Danish crowns ($734.92 million), beating the 4.67
billion expected by analysts in a poll compiled by the company.

 

It reported quarterly EBIT of 957 million crowns, which was above the 917
million expected by analysts, and resulted in an EBIT margin of 20.2%.

 

"Revenue growth and the EBIT margin were lifted by continued strong U.S.
performance and a sequential improvement in Europe as COVID-19 restrictions
were eased," Pandora said.

 

The firm will report full third-quarter earnings on Nov. 3.

 

The Thomson Reuters Trust Principles.

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

National Unity Day

 

December 22

 


 

Christmas Day

 

December 25

 


 

Boxing Day

 

December 26

 


 

Public Holiday in lieu of Boxing Day falling on a Sunday

 

December 27

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

 

 


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
344 1674

 


 

 

 

 

 

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