Major International Business Headlines Brief::: 25 November 2021

Thu Nov 25 09:05:05 CAT 2021

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Major International Business Headlines Brief::: 25 November 2021

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ü  JPMorgan: Boss 'regrets' saying bank will outlast Chinese Communist Party

ü  US blacklists a dozen more Chinese tech firms citing national security

ü  Inflation: South Korea raises rates to tackle price rises

ü  Indian government set to ban cryptocurrencies

ü  Why this city is Europe's best kept cycling secret

ü  Asian tech stocks gain while dollar marches on

ü  U.S. economy eyes strong 2021 finish as labor market tightens, spending accelerates

ü  More Fed officials open to speeding up bond-buying taper, rates liftoff

ü  Citigroup to split Institutional Clients Group's ops, tech units

ü  Investors watch retail stocks as U.S. holiday shopping beckons

ü  Taiwan looking at chip cooperation with Eastern European nations

ü  Turkish lira rebounds after hitting record lows

ü  China regulator seeks to avoid U.S. delistings of Chinese firms

ü  Nigeria's National Carrier, Air Nigeria, Takes Off April 2022, Says Sirika

ü  Uganda: Janet Museveni Appeals to Banks to Halt Repayment of Loans By Schools Until They Reopen

ü  Nigeria's Non-Oil Revenue Grew Above Target By 15.7 Percent - Finance Minister

ü  Nigeria Air to Commence Operations April 2022 - Official

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JPMorgan: Boss 'regrets' saying bank will outlast Chinese Communist Party

JP Morgan boss Jamie Dimon has apologised after saying his Wall Street bank would outlast China's Communist Party.

The comments, made at a US event, sparked anger in China, with experts warning they could jeopardise the bank's ambitions in the country.

Mr Dimon said: "I regret and should not have made that comment," in a statement issued on Wednesday.

He added he was only to trying to "emphasise the strength" of the bank.

Academics suggested the quick apology was aimed at containing the fallout.

In August, JP Morgan won approval to become the first full foreign owner of a securities brokerage in China.

'I bet we last longer'

Mr Dimon made his original remarks at Boston College on Tuesday, where he was taking part in a series of interviews with chief executives.

"I made a joke the other day that the Communist Party is celebrating its 100th year - so is JPMorgan," he said.

"I'd make a bet that we last longer," he told the event. "I can't say that in China. They are probably listening anyway," he added.

It sparked a swift reaction, with Hu Xijin, editor of the state-backed Global Times newspaper, saying on Twitter: "Think long-term! And I bet the CPC [Chinese Communist Party] will outlast the USA."

Chinese foreign ministry spokesman Zhao Lijian said at a news conference on Wednesday: "Why the publicity stunt with some grandstanding remarks?"

'I regret my comment'

Mr Dimon apologised on Wednesday, saying: "I regret my recent comment because it's never right to joke about or denigrate any group of people, whether it's a country, its leadership, or any part of a society and culture.

"Speaking in that way can take away from constructive and thoughtful dialogue in society, which is needed now more than ever."

Global executives typically choose their words carefully when discussing China, where foreign companies have occasionally been subject to a backlash for perceived offences.

Swiss bank UBS ran into trouble in 2019, after a remark by one of its senior economists about food inflation and swine fever was interpreted as a racist slur.

He was suspended for three months and UBS lost a lucrative financial contract with a state-backed client.

Earlier this year, Swedish fashion giant H&M and US-based Nike faced pushback from Chinese state media and ecommerce platforms after expressing concern about allegations of forced labour in Xinjiang.

Eswar Prasad, a professor at Cornell University, said Mr Dimon's swift apology was designed to mitigate any damage.

"Dimon's apology shows the degree of deference foreign businesses have to show to the Chinese government in order to remain in its good graces and maintain access to the country's markets," he said.-BBC

US blacklists a dozen more Chinese tech firms citing national security

The US government has added a dozen more Chinese companies to its trade blacklist, citing national security and foreign policy concerns.

Washington says that some of the firms are helping develop the Chinese military's quantum computing programme.

This latest move comes as tensions grow between the US and China over the status of Taiwan and other issues.

Trade was among the items discussed at a virtual summit between the leaders of both countries earlier this month.

Eight Chinese-based technology firms were added to the so-called "Entity List" for their alleged role in assisting the Chinese military's quantum computing efforts and acquiring or attempting "to acquire US origin-items in support of military applications".

This entity list has increasingly been used for national security reasons since the previous Trump administration.

The US Commerce Department also said 16 individuals and entities operating in China and Pakistan were added to the list due to their involvement in "Pakistan's unsafeguarded nuclear activities or ballistic missile program."

A total of 27 new entities were added to the list from China, Japan, Pakistan, and Singapore.

Separately, the Moscow Institute of Physics and Technology was added to the department's military end user list, although the listing gave no more details other than it had produced military equipment.

The new listings will help prevent American technology from supporting the development of Chinese and Russian "military advancement and activities of non-proliferation concern like Pakistan's unsafeguarded nuclear activities or ballistic missile program," Commerce Secretary Gina Raimondo said in a statement.

Potential suppliers to firms on the blacklist will now need to apply for a license before they can sell to them, with applications likely to be denied.

Chinese telecoms giant Huawei was added to the list in 2019 over claims that it posed a risk US national security.

The move cut it off from some of its key suppliers and made it difficult for the company to produce mobile phones.

The Chinese government has previously denied that it takes part in industrial espionage.-BBC

Inflation: South Korea raises rates to tackle price rises

South Korea's central bank has put up interest rates for the second time this year amid concerns over higher prices and rising household debt.

The Bank of Korea's quarter of a percentage point hike to 1% was widely expected by economists.

It is the latest central bank to make such a move as policy makers try to balance the post-pandemic recovery and rising inflation.

New Zealand raised rates for the second time in as many months on Wednesday.

"The Korean economy has continued its sound recovery," the Bank of Korea said in a statement.

"The Board will continue to conduct monetary policy in order to sustain the recovery of economic growth and stabilize consumer price inflation at the target level over a medium-term horizon, while paying attention to financial stability," it continued.

'More hikes to come'

The bank also raised its inflation outlook to 2.3% for this year and 2% for 2022, suggesting further rate hikes to come.

"The Bank of Korea has made clear that its main priority is controlling financial risks amid surging house prices and household debt. The latest data show both are continuing to grow strongly," said Alex Holmes, Asia Economist at Capitol Economics.

In August, South Korea became the first major Asian economy to raise interest rates since the coronavirus pandemic began.

It was the country's first rate hike in almost three years and put it at the forefront of a global move to withdraw the huge amounts of stimulus put in place to help soften the impact of Covid-19 on economies.

By doing so policy makers aim to keep a lid on rising prices and contain growing financial imbalances.

Major central banks around the world, including the US Federal Reserve and the Bank of England, are expected to tighten monetary policy in the coming months.

On Wednesday, the Reserve Bank of New Zealand (RBNZ) raised its official cash rate by a quarter of a percentage point to 0.75%.

The RBNZ's second rate hike in two months came as the country sees unemployment fall, and inflation and property prices jump.

It came as the New Zealand government unveiled its plans to reopen borders and will allow foreigners to enter next year.

The move eases strict curbs that have locked out many citizens and tourists since borders were shut at the start of the Covid pandemic.-BBC

Indian government set to ban cryptocurrencies

India is set to go ahead with its plan to ban most cryptocurrencies in the country under a long-awaited bill.

Expectations had grown in recent months that the government may soften its view on digital currencies.

The ban would relate to all private cryptocurrencies with certain exceptions to allow the promotion of the underlying technology and its uses.

Cryptocurrency prices dropped on Indian exchanges after the decision on the bill's future was announced.

Crypto-focused bill

According to a government bulletin, the ban is part of the proposed Cryptocurrency and Regulation of Official Digital Currency Bill that will be introduced in its winter session.

The planned legislation aims "to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI)".

The plan to prohibit all private cryptocurrencies appeared to be essentially the same as an earlier draft of the bill submitted in January.

In recent months it was thought the government may soften its stance on cryptocurrencies, possibly seeking to have them regulated as assets instead of a means of payment.

While the description of the bill has remained the same, the exact differences have yet to be confirmed because the latest draft is not yet publicly available.

Market impact

The value of several digital currencies reportedly dropped following the announcement of the bill.

Bitcoin fell more than 13% on the Indian exchange site WazirX, while Shiba Inu and Dogecoin both dropped more than 15%.

However, Glen Goodman, author of The Crypto Trader, told the BBC's World Business Report radio programme that the global impact was "relatively small".

"Even when China decided to ban cryptocurrency - and that was a really big deal - it didn't completely massacre the crypto markets," he said.

According to a video report by local news publication India Today, cryptocurrency trading is likely to continue under the proposed bill, as long as users buy from exchanges which meet certain requirements.

The report added that the bill may focus on restricting who is allowed to create cryptocurrencies, with the aim of protecting investors.

'Serious concerns'

According to the CoinDesk website, the RBI, the country's central bank, is regarded as having conservative views about cryptocurrency.

In March 2020, India's supreme court overturned a digital currency trading ban imposed by RBI for two years.

And last week, RBI governor Shaktikanta Das said the bank had "serious concerns from the point of view of macro-economic and financial stability", and that blockchain technology can thrive without cryptocurrencies.

However Mr Goodman pointed to the recent ban in China, and El Salvador's plan to build a Bitcoin city at the base of a volcano with the cryptocurrency used to fund the project.

"Governments take very different approaches to how they see it," he said. "As a threat, an opportunity, or somewhere in-between."

Mr Goodman said the Chinese government wants to get rid of all digital currencies except the one it is creating.

"They want to dominate cryptocurrencies, and it seems to me like the Indian government has got the same idea.

"They think, 'well if China is doing it, then so can we'."-BBC

Why this city is Europe's best kept cycling secret

Portugal's bike and bike parts manufacturers have seen a big rise in orders

Rui Mendes says that when coronavirus first arrived, the business he helps to run had to slam on its brakes and skid to an immediate stop.

Mr Mendes is a director at a Portuguese firm called Rodi, one of Europe's largest manufacturers of bike wheels.

"At the pandemic's onset many clients [bike firms] stared to postpone orders, fearing what might happen," he says. "We ended up stopping production."

To try to save jobs and salaries, the 300 employees agreed to immediately take a three-week holiday. But then a month later things dramatically changed for the better, as millions of people across Europe took up cycling during the pandemic.

"From April things turned completely," says Mr Mendes. "Orders doubled, the market just exploded. Apprehension gave way to relief as the employees realised that the pandemic wasn't going to threaten their jobs."

Portugal is the largest manufacturer of bikes in the European Union, a fact many people outside of the country might not know. Last year, more than 2.6 million bikes were made in Portugal, according to official EU figures.

That was more than one fifth of the total 12.2 million bicycles produced. Italy was in second place on 2.1 million, and Germany ranked third with 1.3 million.

Portugal doesn't have any big bike brand names, instead it mainly does manufacturing for foreign companies. For example, one of its largest producers - RTE - makes bicycles for French giant Decathlon. Another - FJ Bikes Europe - is owned by Taiwan's Fritz Jou Manufacturing.

The industry is concentrated around one small city - Agueda in central Portugal, some 75 km (47 miles) south of Porto. In addition to the businesses that build full bikes, there are also firms, such as Rodi, that make bike parts or accessories.

In total, there are more than 60 factories, and almost 8,000 people employed in the sector in and around Agueda.

João Filipe Miranda says that his business will post a revenue figure of €27m ($30m; £23m) this year, "our best since the company's foundation" in 1940.

The company - Miranda - makes components for bicycle gears, including those for electric bikes.

Mr Miranda says that while Portugal's bike industry is "known for its quality", it also benefits from offering its European customers much shorter supply chains than rival manufacturers based in Asia. Portugal is further helped by the continuing tariffs put on Chinese bike imports in to the European Union.

These extra fees or duties currently stand at up to 48.5% for standard bikes, and as high as 79.3% for electric ones.

Yet, Gil Nadais, secretary general of the trade body for the Portuguese cycling sector - Portugal Bike Value - says the pandemic was the main driving force behind the industry's continuing boom.

"Covid brought a new opportunity to the sector, since it ended up incentivising healthier lifestyles [across Europe]."

Mr Nadais adds that industry is expected to see total exports rise between 20% and 30% this year.

But have Portuguese people themselves got more into cycling since Covid? That does appear to be the case, even in the capital Lisbon and second city Porto, where people were traditionally seen as adverse to cycling due to the steep and often cobbled roads in both areas.

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In Lisbon the use of bikes, including electric ones, to help get up all the hills, has risen by a quarter since the start of the pandemic, according to one report.

And Fernando Chicarini, the owner of Lisbon's oldest bike shop - Armazéns Airaf, which was founded in 1951 - says his sales have soared by 40% since the start of the pandemic. He has also seen a big rise in the number of people wanting him to fix their old bikes.

"People who already owned bicycles, but didn't use them regularly, or at all, showed up for repairs, revisions, and restorations," he says.

Back at the Rodi parts factory, Mr Mendes says they sold 500,000 bike wheels and three million wheel rims in 2020, a combined 35% hike compared with 2019.

"We were lucky that those of us in the bicycle sector didn't suffer as much as workers in other industries," he adds.-BBC

Asian tech stocks gain while dollar marches on

(Reuters) - Asian tech stocks rose on Thursday, following their U.S.-listed peers, though broader gains were capped by the strength of the U.S. dollar as investors bet on interest rates rising more quickly in the United States than other major economies.

European stocks were expected to advance with Euro Stoxx 50 futures up 0.5% and FTSE futures 0.24% higher in early trade, potentially indicating a rebound after a week when rising COVID cases in Europe have weighed on market sentiment there.

Japan's Nikkei (.N225) rose 0.8%, helped by gains in tech stocks such as Sony (6758.T), which rose 1.5%, while Hong Kong's bruised tech index (.HSTECH) snapped six sessions of losses to gain 0.85%, versus a 0.25% gain in the local benchmark.

Heavyweight Alibaba (9988.HK), up 2.7%, was among the leaders.

Analysts said the gains largely followed overnight advances by U.S. tech stocks as investors decided a sell-off caused by prospects of higher U.S. interest rates had gone too far.

Other share moves were more muted however. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) traded either side of flat, and was last 0.06% higher.

In broad terms, "when it comes to regional equities allocation, we're watching the U.S. dollar which is making new highs and that is a headwind for emerging market equities," said Fook-Hien Yap, senior investment strategist at Standard Chartered Bank wealth management.

The dollar is trading near its highest in almost five years versus the Japanese currency at 115.3 yen, and testing a near 18-month high against the euro which was at $1.1211. FRX

Supporting the greenback, several U.S. Federal Reserve policymakers said they would be open to speeding up the tapering of the central bank's bond-buying programme if the high rate of inflation held, and move more quickly to raise interest rates, minutes of the Fed's Nov. 2-3 policy meeting showed. read more

"The market is now pricing in more than two hikes next year, but we think that is overly aggressive. We are only looking for about one hike next year," said Yap.

These expectations have pushed U.S. treasury yields higher, albeit inconsistently, with benchmark 10-year notes last yielding 1.6427% having risen as high as 1.6930% on Wednesday.

U.S. Treasuries will not trade on Thursday because of the Thanksgiving holiday. U.S. stock markets will also be closed and will have a shortened session on Friday.

In other central bank news, the Bank of Korea raised its policy interest rate (KROCRT=ECI) by 25 basis points on Thursday, as widely expected, as concern about rising household debt and inflation offset uncertainty around a resurgence in COVID-19 cases.

Oil prices rose slightly after a turbulent few days in which the United States said it would release millions of barrels of oil from strategic reserves in coordination with China, India, South Korea, Japan and Britain to try to cool oil prices after calls to OPEC+ to pump more went unheeded. However, investors questioned the programme's effectiveness, leading to price gains.

Brent crude was last at $82.53 a barrel, up 0.33%, while U.S. crude was at $7856, up 0.2%.

Spot gold edged 0.17% higher to 1791 an ounce.

The Thomson Reuters Trust Principles.

U.S. economy eyes strong 2021 finish as labor market tightens, spending accelerates

(Reuters) - The number of Americans filing new claims for unemployment benefits dropped to a 52-year low last week, suggesting economic activity was accelerating as a year ravaged by shortages, high inflation and an unrelenting pandemic draws to a close.

The plunge in claims reported by the Labor Department on Wednesday was, however, exaggerated by difficulties adjusting the data for seasonal fluctuations this time of the year. Still, the labor market is tightening, with jobless rolls shrinking in mid-November to the smallest since March 2020 when the economy was in the grips of the first wave of COVID-19 infections.

The economy's strengthening tone was confirmed by other data showing strong consumer spending in October as well as business orders for equipment, excluding transportation. The goods trade deficit narrowed sharply last month as exports surged.

But prices remained stubbornly high, with annual inflation jumping by the most in nearly 31 years. The raft of solid reports ahead of Thursday's Thanksgiving holiday prompted economists to boost their fourth-quarter growth estimates to as high as an 8.6% annualized rate.

"There might be some seasonal adjustment problems, but the handwriting is on the wall and all the anecdotal reports on how companies cannot find the help they need are true," said Christopher Rupkey, chief economist at FWDBONDS in New York.

"The economy will finish the year with a bang, there is lots to give thanks for."

Initial claims for state unemployment benefits tumbled 71,000 to a seasonally adjusted 199,000 for the week ended Nov. 20, the lowest level since mid-November 1969.

Economists polled by Reuters had forecast 260,000 applications for the latest week.

Unadjusted claims rose 18,187 to 258,622 last week amid a surge in Virginia, which offset declines in California, Kentucky and Missouri. More volatility is likely over the holiday season.

"The claims series can be noisy and especially choppy around holidays like Thanksgiving when the seasonal factors anticipate large swings in the underlying data," said Daniel Silver, an economist at JPMorgan in New York. "But even so, initial claims fell by more than a half million over the year through Nov. 20, both before and after seasonal adjustment."

Claims have declined from a record high of 6.149 million in early April 2020, and are now viewed as consistent with a healthy labor market, though an acute shortage of workers caused by the pandemic is hindering faster job growth.

But there is hope for an expansion of the labor pool. The number of people continuing to receive benefits after an initial week of aid dropped 60,000 to 2.049 million in the week ended Nov. 13, a 20-month low, the claims report showed.

There were 10.4 million job openings as of the end of September. The workforce is down 3 million people from its pre-pandemic level, even as generous federal government-funded benefits have expired, schools have reopened for in-person learning and companies are raising wages.

Stocks on Wall Street fell. The dollar gained versus a basket of currencies. U.S. Treasury prices rose.

BRIGHTENING PICTURE

Signs the economy was regaining momentum after hitting a speed bump in the July-September quarter as coronavirus cases flared up over summer and shortages became more widespread could result in the Federal Reserve quickly winding up its bond-buying program.

Indeed, minutes of the U.S. central bank's Nov. 2-3 policy meeting published on Wednesday showed some Fed officials would be open to doing so. read more

"We see the Fed accelerating tapering in January to clear the runway for a September rate liftoff," said Lydia Boussour, lead U.S. economist at Oxford Economics in New York.

A separate report from the Commerce Department on Wednesday showed gross domestic product rose at a 2.1% rate in the third quarter. That was a slight upward revision from the 2.0% pace estimated in October, but was still the slowest in more than a year. The economy grew at a 6.7% rate in the second quarter.

But that is all in the rear-view mirror. A third report from the Commerce Department showed consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 1.3% in October after rising 0.6% in September.

Consumers, buoyed by rising wages and massive savings, bought motor vehicles and traveled, showing no signs yet of holding back because of high inflation.

Global economies' simultaneous recovery from the pandemic, fueled by trillions of dollars in relief money from governments, has strained supply chains, unleashing inflation.

President Joe Biden announced on Tuesday that the United States would release 50 million barrels of crude from the U.S. Strategic Petroleum Reserve to help cool oil prices, in coordination with China, India, South Korea, Japan and Britain.

The personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, increased 0.4% last month after gaining 0.2% in September. In the 12 months through October, the so-called core PCE price index accelerated 4.1%. That was the largest gain since January 1991 and followed a 3.7% year-on-year advance in September.

The core PCE price index is the Fed's preferred inflation measure for its flexible 2% target. read more

Adjusted for inflation, consumer spending rose a solid 0.7%.

In another boost to the economy, orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, rose 0.6% last month, the Commerce Department said in a fourth report. read more

With corporate profits hitting a record high last quarter, businesses are likely to keep spending.

More goods were exported in October, sharply narrowing the goods trade deficit by 14.6% to $82.9 billion. If the trend holds, trade could contribute to GDP growth this quarter.

Wholesalers continued to rebuild inventories last month though motor vehicle shortages stymied progress by retailers, a fifth report showed.

Inventory accumulation, the key driver of GDP growth last quarter, will likely continue to support the economy. The strong data flow led the Atlanta Fed to raise its fourth-quarter GDP growth estimate to an 8.6% rate from an 8.2% pace. JPMorgan boosted its forecast to a 7.0% pace from a 5.0% rate.

The Thomson Reuters Trust Principles.

More Fed officials open to speeding up bond-buying taper, rates liftoff

(Reuters) - A growing number of Federal Reserve policymakers indicated they would be open to speeding up the elimination of their bond-buying program if high inflation held and move more quickly to raise interest rates, minutes of the U.S. central bank's last policy meeting showed.

The readout released on Wednesday was the latest indication that anxiety about rising inflation at the Fed has now taken root, with many officials at the Nov. 2-3 meeting also suggesting elevated price pressures could prove more persistent.

The durability and broadening in price pressures has taken the White House and the central bank by surprise and prompted both to respond. U.S. President Joe Biden and Fed Chair Jerome Powell stressed earlier this week that they would take steps to tackle the rising costs of everyday items, including food, gasoline and rent.

Although the surge in inflation in late spring and over the summer was portrayed as transitory, concern within the Fed has mounted as readings have continued to remain elevated into the fall.

"Various participants noted that the (policy-setting) Committee should be prepared to adjust the pace of asset purchases and raise the target range for the federal funds rate sooner than participants currently anticipated if inflation continued to run higher than levels consistent with the Committee's objectives," the Fed said in the minutes.

Fed policymakers unanimously decided at last month's meeting to begin reducing the central bank's $120 billion in monthly purchases of Treasuries and mortgage-backed securities, a program introduced in early 2020 to help nurse the economy through the COVID-19 pandemic. A number outright favored a faster taper of the bond-buying program during those deliberations, the minutes showed.

The original pace would see the asset purchases tapered completely by next June. Since then, however, there have been increasing calls by some policymakers to accelerate the timeline in the face of the continued high inflation readings and stronger job gains, in order to give the Fed greater flexibility to raise its benchmark overnight interest rate from the current near-zero level earlier next year if needed.

Investors' reaction to the release of the minutes was largely muted, with the S&P 500 index (.SPX) up about 0.2% in late afternoon trading. Yields on the shorter-dated Treasuries most sensitive to Fed policy expectations held steady at slightly higher levels, while the dollar remained near its highest mark since July 2020 against a basket of major trading partners' currencies.

"The (policy committee) has clearly woken up to the realisation that, even if it falls back somewhat, inflation is likely to remain above target for some considerable time," said Paul Ashworth, chief U.S. economist at Capital Economics.

'WOULD NOT HESITATE'

A number of other policymakers at the Fed's November meeting, however, still advocated for a more patient approach, wanting more data in hand, although all agreed the Fed "would not hesitate to take appropriate actions to address inflation pressures that posed risks to its longer-run price stability and employment objectives."

But with further robust economic data released over the past three weeks, all signs point to an acceleration of the bond-buying taper now being firmly on the table at the Fed's next policy meeting on Dec. 14-15.

Data released on Wednesday showed the number of Americans filing new claims for unemployment benefits fell to the lowest level since 1969 last week, while the Fed's preferred measure of inflation continued to run at more than twice the central bank's 2% flexible average goal in October.

San Francisco Fed President Mary Daly, one of the central bank's most cautious policymakers, also said on Wednesday she is open to a quicker wind-down of the bond-buying program if jobs and inflation data remain steady and that she could see the Fed's policy-setting committee raising rates once or twice next year.

Investors currently see a 53% probability that the Fed's overnight lending rate will rise in May of 2022, up from 45% on Tuesday, according to CME Group's FedWatch program.

Inflation in October rose at its fastest annual pace in 31 years, testing the Fed's working assumption for most of the year that the pandemic-induced burst would be temporary as supply bottlenecks eased and demand rotated from goods to services.

Some other policymakers have said recently they too are now more comfortable with an interest rate hike earlier next year than previously anticipated, noting that the current pace of job gains would put the Fed on track to be near or at its maximum employment goal by the middle of 2022.

The Thomson Reuters Trust Principles.

Citigroup to split Institutional Clients Group's ops, tech units

(Reuters) - Citigroup Inc (C.N) is planning to split the operations and technology functions of its unit, Institutional Clients Group, which contributed about 63% of the Wall Street bank's total third-quarter revenue.

The reorganization plan for the unit that houses banking, markets, securities services among others was shared by the bank in an internal memo by unit Chief Executive Paco Ybarra on Wednesday. A Citi spokesperson confirmed the content in the memo when contacted by Reuters.

The operations and technology teams "will continue to work closely with our businesses to develop innovative solutions that make it simpler for our clients to work with us," Ybarra said in the memo.

Stuart Riley, who currently heads the operations and technology units at ICG, will now only manage the technology team. Allison Szmulewicz, who was leading the unit's Latin American operations and technology functions, will now serve as the interim operations chief.

The Thomson Reuters Trust Principles.

Investors watch retail stocks as U.S. holiday shopping beckons

(Reuters) - Investors are zeroing in on a number of hot retailers' shares as the U.S. holiday shopping season kicks into high gear this week, weighing the potential for supply chain problems against expected strong consumer demand.

The day after the U.S. Thanksgiving holiday, Black Friday, has for years unofficially marked the start of the holiday shopping period and one of the busiest shopping days of the year.

But the ongoing coronavirus pandemic and its effect on supplies have likely driven shoppers out early, as evidenced by a recent Commerce Department report showing U.S. retail sales surged in October. read more

"We're in a very different place now and for the last two years. Christmas is a four-month season, starting in October," said Phil Orlando, chief equity strategist and head of the client portfolio management team at Federated Hermes in New York.

Among other trends, the Black Friday average promotional discount is lower than in previous years, according to data compiled by Refinitiv and StyleSage Co, a data analytics platform, suggesting consumers may not see the bargains they've seen before.

But analysts have become more bullish on the holiday shopping season, according to data polled by Refinitiv, which noted that discounters, home furnishing and home improvement companies are expected to see among the strongest same-store sales growth.

Many retailers have outperformed the broader market this year. An S&P retail exchange-traded fund (XRT.P)is up 54% since Dec. 31, compared with about a 25% gain in the S&P 500 (.SPX) year-to-date.

Refinitiv pointed to a number of companies facing "difficult comparisons" in the fourth quarter versus a year ago, when sales were strong, but that still have upbeat forecasts for this quarter, including Crocs Inc (CROX.O), Williams-Sonoma (WSM.N), Lowe's Cos (LOW.N), Home Depot (HD.N), Lululemon Athletica (LULU.O), and Target (TGT.N).

"Last year they knocked it out of the park, and you're still seeing strong numbers, which suggests that strength and demand for the products are holding up very well," said Jharonne Martis, director of consumer research at Refinitiv.

Among the retailers with the best year-to-day gains are Bath & Body Works (BBWI.N), Tractor Supply (TSCO.O) Autozone (AZO.N) and Etsy (ETSY.O).

Recent earnings reports from retailers have cited problems with supply disruptions and strategists say inventory levels could be a problem for some retailers this shopping season.

This week, Gap Inc. (GPS.N) lowered its full-year forecast amid supply chain disruptions including factory closures, and its stock plunged about 23% on Wednesday.

Last week, Walmart Inc (WMT.N) raised its annual sales and profit forecast but global supply-chain disruptions hit its margins in the third quarter.

Online spending will be strong again this holiday season, the Refinitiv analysis also showed, so all eyes will be on Amazon.com (AMZN.O).

"Online is going to rule the day," Orlando said, and he said overall the companies that are likely to do better this season are the ones that have been able to find a way around supply logjams, such as Amazon, and possibly Target, Walmart and Costco (COST.O).

Shares of big department stores that typically draw heavier traffic during the holidays also will be closely watched, including Macy's (M.N), Kohl's (KSS.N) and Nordstrom (JWN.N), as well as companies with consumer brand favorites, like Apple (AAPL.O).

Macy's (M.N) signaled last week that it was well stocked for the holiday season. read more

The Thomson Reuters Trust Principles.

Taiwan looking at chip cooperation with Eastern European nations

(Reuters) - Taiwan is looking at cooperating with three Eastern European countries on semiconductors, a minister said on Thursday, a move likely to find favour in Brussels which has been courting Taiwanese semiconductor firms to manufacture in the bloc.

Tech powerhouse Taiwan, home to companies such as Taiwan Semiconductor Manufacturing Co Ltd (TSMC) (2330.TW), has become front and centre of efforts to resolve a shortage of chips that has shut some auto production lines around the world and whose impact is now being felt in consumer electronics too.

While TSMC is building a $12 billion chip fabrication plant in the U.S. state of Arizona, it has given no suggestion of interest in a similar facility in Europe, despite EU efforts to spur such investment.

Kung Ming-hsin, who heads Taiwan's National Development Council, told reporters following his visit to Slovakia, the Czech Republic and Lithuania last month that all three countries had mentioned they wanted to work on chips with the island.

Taiwan will set up working groups with the three countries to work out how to cooperate on chips, while Taiwan will also give scholarships for technical training, he added.

"The whole semiconductor supply chain is enormous. Many countries can play different roles," Kung said.

Taiwan has been keen to express its gratitude to the three countries for their donations of COVID-19 vaccines, and also, for Lithuania and the Czech Republic's support as Taiwan faced growing political pressure from China.

Neither the EU nor its member states have formal diplomatic ties with Chinese-claimed and democratically-ruled Taiwan, but Taipei has sought to bolster its relations with the bloc by stressing their shared values of freedom and democracy.

The European Commission has proposed legislation to boost chip production, and has angled for Taiwan's involvement.

Kung said it would be hard for Europe to do that on its own.

"So they hope to cooperate with Taiwan," he added.

The Thomson Reuters Trust Principles.

Turkish lira rebounds after hitting record lows

(Reuters) - Turkey's lira continued its recovery on Thursday after a historic slide to record lows this week triggered by President Tayyip Erdogan's defence of interest rate cuts.

The lira , traded at 11.85 at 0400 GMT, firming some 1.9% from a close of 12.0820 on Wednesday. It hit its weakest level of 13.45 against the greenback on Tuesday.

The currency hit all-time lows against the dollar in all 11 consecutive sessions before Wednesday and has lost as much as 45% of its value this year, with around half of those losses occurring since the start of last week.

The Thomson Reuters Trust Principles.

China regulator seeks to avoid U.S. delistings of Chinese firms

(Reuters) - Chinese authorities are working with U.S. counterparts to prevent Chinese companies being delisted from U.S. stock exchanges, a Chinese regulatory official said on Thursday, as a lengthy dispute about auditing standards rumbles on.

U.S. authorities are moving towards kicking foreign companies off American stock exchanges if their audits fail to meet U.S. standards.

The Public Company Accounting Oversight Board (PCAOB) and U.S. policy makers have long complained of a lack of access to audit working papers for U.S.-listed Chinese companies. Citing national security concerns, Chinese authorities have been reluctant to allow overseas regulators to inspect working papers from local accounting firms.

"We don’t think that delisting of Chinese firms from the US market is a good thing either for the companies, for global investors or Chinese-US relations," Shen Bing, director general of the China Securities Regulatory Commission's department of international affairs, told a conference in Hong Kong.

"We are working very hard to resolve the auditing issue with U.S. counterparts, the communication is currently smooth and open. There is a risk of delisting of these companies but we are working very hard to prevent it from happening," he added.

In December 2020, during the last weeks of his administration, President Donald Trump signed a law aimed at removing foreign companies from U.S. exchanges if they failed to comply with American auditing standards for three years in a row.

A map on the organisation's website showed China as the only jurisdiction that denied the PCAOB "necessary access to conduct oversight".

Speaking at the same conference, Ashley Alder, CEO of Hong Kong's Securities and Futures Commission said he feared Sino-U.S. tensions could prevent a solution.

"Sometimes politics can interrupt technical solutions that are sensible and achievable, and I pick up a degree of political attitude within the U.S. establishment that is not necessarily conducive to a better outcome."

Hong Kong previously faced similar problems with access to mainland China audit working papers, but Alder said the SFC's relationship with the CSRC and a 2019 agreementhad helped resolve these.

Hong Kong has benefitted from the Sino-U.S. spat, as a string of U.S.-listed Chinese companies have carried out secondary listings in the city in recent years, partly as a back up in case the companies are deslisted from the Nasdaq or NYSE, say market participants.

The Hong Kong stock exchange, last week, confirmed it would proceed with rule changes to make it easier for overseas-listed Chinese companies to carry out secondary listings, and for companies to change a Hong Kong secondary listing to a primary one.

The Thomson Reuters Trust Principles.

Nigeria's National Carrier, Air Nigeria, Takes Off April 2022, Says Sirika

Abuja — Nigeria's national carrier, Air Nigeria, is set to commence operations by April 2022, the Minister of Aviation, Senator Hadi Sirika, has said.

The minister disclosed this to newsmen on Wednesday after the weekly virtual meeting of the Federal Executive Council (FEC) presided over by President Muhammadu Buhari at the State House, Abuja.

He explained that the national carrier will be run by a company in which the Nigerian government will hold a 5% stake, Nigerian entrepreneurs holding 46%, while the remaining 49% will be reserved for yet to be assigned strategic equity partners, including foreign investors.

Sirika also stressed that the national carrier, when operational, will create about 70,000 jobs for Nigerians.

Details later... This Day.

Uganda: Janet Museveni Appeals to Banks to Halt Repayment of Loans By Schools Until They Reopen

The minister of Education and Sports, Janet Museveni has appealed to banks to halt repayment of loans by schools until they officially re-open.

She said banks should wait until schools are fully operational again.

The minister made these remarks while meeting officials from the Uganda Bankers Association on Tuesday.

The meeting was held to discuss how proprietors of private education institutions can be supported over the accumulated non-performing loans.

Shortly after the meeting, Janet Museveni said in a tweet that she urged banks to halt the repayment of loans by schools.

"My appeal to the banks in Uganda is to consider halting the repayment of loans by schools until they are operational again and can generate income that will enable them to pay back the outstanding loans," Janet Museveni said in a tweet.

Earlier this year, private school owners had asked government to intervene, and help them with a fund, that they can use to repay loans.

The minister for Finance Matia Kasaija said then, that government has no money. Kasaija urged schools to sell their assets and pay off the loans.

Last week, The Bank of Uganda (BoU) announced extension of credit relief for borrowers in the education and hospitality sectors that were negatively affected by Covid-19.

Schools in Uganda have been closed for nearly two years. A recent report from UNICEF revealed that Uganda has closed its schools for the longest period.

President Museveni in a recent address said that schools can now hope to be reopened in January 2022, although government is yet to issue a reopening plan, with a month to go.

Nigeria's Non-Oil Revenue Grew Above Target By 15.7 Percent - Finance Minister

She said the government was also intensifying efforts to further grow and diversify the country's revenue sources with a variety of fiscal policies.

The Minister of Finance, Budget and National Planning, Zainab Ahmed, has said that Nigeria's non-oil revenue grew to N1.15 trillion, representing 15.7 per cent above the target rate in response to the federal government's efforts at diversifying the nation's economy.

Mrs Ahmed made this known virtually at the Institute of Directors (IoD) 2021 Annual Directors Conference which was held physically and virtually on Wednesday in Abuja.

The News Agency of Nigeria (NAN) reports that the two-day event is with the theme: "Creating the Future: Deepening the Corporate Governance Practice through Multi-Sectoral and Multi-Generational Collaborations."

Mrs Ahmed said the development was in line with the Buhari administration's commitment to further diversifying the Nigerian economy away from oil.

She noted that Nigeria was showing resilience in recovery from recession from the ravages of the coronavirus (COVID-19) pandemic which brought challenges to global economies.

The minister said the federal government alongside the private sector had implemented a wide range of monetary measures to stimulate economic recovery, growth and development, job creation and improved standards of living.

She said government was also intensifying efforts to further grow and diversify the country's revenue sources with a variety of fiscal policies.

"Nigeria was quickly able to exit recession and is on her way to path of sustainable growth and we are intensifying efforts to grow and diversify our revenue sources to grow revenue from the current 8 per cent.

"Our non-oil revenues have grown to N1.15 trillion, representing 15.7 per cent above set target.

"We are working on the 2021 finance bill and it's nearing completion.

"Also, the recent approval of the medium-term national development plan is an important milestone of Buhari's commitment to delivering sustainable growth and we require strong support and monitoring during implementation," she said.

Mrs Ahmed reiterated the government's commitment to addressing infrastructural gaps via Infrastructural Corporation of Nigeria (InfraCo) to reduce the cost of production for businesses in the country.

"It would increase investments in the Nigerian infrastructure sector to spur growth in key sectors of the Nigerian economy," she said.

Ije Jidenma, President, IoD, expressed the institute's interest in partnering with the government at all levels to entrench strong corporate governance practices into the public service to help achieve its goals of economic development.-Premium Times.

Nigeria Air to Commence Operations April 2022 - Official

According to Mr Sirika, the majority shares of 49 per cent of the Nigeria Air project will be owned by strategic equity partners.

The Federal Executive Council (FEC) has approved April 2022 as the official date for the commencement of the operations of much-awaited Nigeria Air.

The Minister of Aviation, Hadi Sirika, disclosed this when he along with Ministers of Transportation, and Finance, Budget and National Planning, Rotimi Amaechi and Zainab Ahmed, respectively, briefed State House correspondents on the outcome of the FEC meeting.

The meeting was presided by President Muhammadu Buhari in the Presidential Villa, Abuja, on Wednesday.

According to Mr Sirika, the majority shares of 49 per cent of the Nigeria Air project will be owned by strategic equity partners, 46 per cent by Nigerians while the Federal Government will own five per cent of the shares.

The minister revealed that the council also approved N1.49 billion for the provision of Automated Civil Aviation Regulatory Equipment to be located at Nnamdi Azikiwe International Airport.

"Today in Council, Ministry of Aviation presented two memoranda. The first one is approval for the award of contract for the provision of Automated Civil Aviation Regulatory Equipment, including the software support and training, which will be located at Nnamdi Azikiwe International Airport, Abuja.

"In summary, this is the software that will allow all of the activities of civil aviation regulations to be done electronically on one platform, including payments, follow-ups on personnel licenses, medicals, economic regulation of airlines, safety regulations of airlines and all other businesses within the envelope of civil aviation, will be monitored by this single software. So, that has been approved.

"This one also is the approval of the Outline Business Case for the establishment of the National Carrier. This is the sixth time the memorandum appeared before the council and sixth time got lucky to be passed by council.

"The structure of the proposed airline - Federal Government would be owing not more than five per cent. So, five per cent is the maximum equity that government would take.

"Then, 46 per cent would be owned by Nigerian entrepreneurs. So, if you add that is 51 per cent. So, 51 per cent majority shareholding by Nigerians.

"And then, 49 per cent will be held by strategic equity partners; our partners will be sourced during the procurement phase, which is the next phase."

The minister revealed that Nigeria Air, when operational, would generate over 70,000 jobs, saying "these 70,000 jobs, they are higher than the total number of civil servants that we have in the country."

Also speaking on the outcome of the meeting, the Minister of Finance, Budget and National Planning, Zainab Ahmed, said she presented to the council for information and discussion, the third-quarter GDP report for 2021.

The report was released last Thursday by the National Bureau of Statistics.

"The result shows an improvement from the contraction that we witnessed in 2020. Recall that we had negative growth in Q2 and Q3, 2020.

"We entered into a recession technically and then exited recession by the fourth quarter of 2020.

"So, this report shows that we now have four consistent quarters of growth from Q4 2020 to Q3, 2021.

"The GDP third-quarter report shows a growth of 4.03 per cent in the third quarter 2021, compared to a contraction of minus 3.62 per cent in the third quarter of last year.

"So, part of the economic activities that were the major drivers of growth within this reporting period is services which grew by 8.41 per cent," she said.

The minister maintained that the growth in the service sector was largely driven by better performance in the rail transport sector, pipeline sector, air transport, financial institutions, road transport sector and water transport as well as crude.

She further noted that steps taken by the government to contain the COVID-19 pandemic as well as the strict implementation of its fiscal policies helped in improving the economy.

"So, factors that are responsible for this growth include the commitment of the government to continued containment of the COVID-19 pandemic, as well as the implementation of fiscal and monetary measures to support businesses contained in the Economic Sustainability Plan.

"It includes the improvement that we've witnessed in the rail transport sector, pipelines, air transport, road transport, as well as water transport.

"It includes improvement in the transportation and the free movements of people as well as goods as the containment measures have been really improved," she said.

The minister also noted that the government's diversification plan had been very successful, proving that the country could not continue to depend on oil alone.

"The growth in industry has been consistent, but we have seen a slight slowdown compared to the last quarter of 2021 and the contraction of the industry is driven by the poor performance of the crude oil and natural gas sectors, coal mining, quarrying, minerals as well as oil refinery.

"The Q3 GDP report indicates that the oil sector's contribution to the GDP today stands at 7.49 per cent while the non-oil sector's contribution to the GDP stands at 2.51 per cent.

"This indicates that the Nigerian economy is truly much diversified with the oil sector contributing just 7.49 per cent," she added.

On his part, the Minister of Transportation, Rotimi Amaechi, also revealed that he presented a memorandum to the cabinet for approval for the award of contract for the provision of training logistics, operational equipment and maintenance support for government under the Integrated National Surveillance and Waterways Protection Solution Infrastructure in Nigeria.

"This is also what we call the Deep Blue Project. That's the project that the president launched some months ago, around May or June.

"The contract was awarded at N6,347,967,644.21, inclusive of 7.5% VAT for a period of two years.

"It is also important to say that the cabinet was briefed that there is huge improvement in the security on our waterways now and we hope that it will continue as we progress," he explained.-Premium Times.

Invest Wisely!

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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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