Major International Business Headlines Brief::: 27 November 2021

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Major International Business Headlines Brief::: 27 November 2021

 


 

 


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

 


 

 


ü  737 Max: Boeing refutes new safety concerns

ü  Covid: Shares hit as new variant rattles investors

ü  Poorest face food crisis amid fertiliser shortage

ü  Black Friday on track to beat last year's sales

ü  Telecom Italia loses CEO in boardroom clash amid KKR approach

ü  Equities, oil prices, U.S. Treasury yields all drop on COVID variant
fears

ü  What investors are saying about the new virus variant

ü  Wall St Week Ahead: COVID-19 fears reappear as a threat to market

ü  WTO postpones major meeting after new variant outbreak

ü  Tesla decides against state aid for German battery plant as Musk opposes
subsidies

ü  Oil settles down $10/bbl in largest daily drop since April 2020

ü  Delta, United not revising South Africa flights amid variant concerns

ü  Tanzania: Museveni Heads to Tanzania for Oil Pipeline Talks

ü  Nigeria: NDIC Pays N11.76 Billion to 535,815 Depositors of Closed Banks

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

737 Max: Boeing refutes new safety concerns

It has been called "the most scrutinised transport aircraft in history", but
some critics believe Boeing's 737 Max is still not safe.

 

It was cleared to fly passengers again by US regulators last year, having
been grounded following two catastrophic accidents.

 

Since then, however, a number of potentially serious problems have been
reported during 737 Max flights.

 

Boeing insists the aircraft is both safe and reliable.

 

On 14 October, a 737 Max took off from Boeing Field airport in Seattle,
bound for Brussels. It was a delivery flight, taking the brand-new plane to
start work for its owners, the travel group Tui.

 

But minutes into the 5,000-mile journey, the pilots reported an urgent
"flight control problem" and had to turn back. The aircraft landed safely
shortly afterwards.

 

The issue, linked to the autopilot, was rectified relatively quickly. The
plane set off for Brussels again the following day, and has been flying
regularly since then.

 

However, this was not an isolated incident.

 

Emergencies

Whenever a US carrier or repair station discovers any serious failure,
malfunction or defect aboard an aircraft, it has to inform the US regulator,
the Federal Aviation Administration (FAA), via a so-called "service
difficulty report".

 

There have been more than 180 such reports since the 737 Max returned to
service.

 

Most faults were found on planes that were on the ground. But on 22
occasions, they occurred in-flight, and on four of those the pilots declared
emergencies.

 

US pilots also declared emergencies on two further occasions due to engine
failures. These events do not currently appear in the FAA's database, but
have been reported on the Aviation Herald website, which lists accidents and
incidents in commercial aviation.

 

The problems occurred in a US fleet that is still relatively small, with
fewer than 160 aircraft delivered as of mid-October - some of which were
grounded for several weeks early in the year after the discovery of
electrical issues.

 

Service difficulty reports are also made public by the Canadian regulator,
Transport Canada. Its database shows that the Canadian fleet of 56 737 Max
aircraft has generated 19 reports, five of them relating to in-flight
incidents.

 

The 737 Max remains under intense scrutiny. The plane was grounded for 20
months from March 2019, after being involved in two major accidents, in
which 346 people died.

 

Its flight control software was modified, to remove a serious flaw
implicated in both crashes. Other physical changes were made to the
aircraft.

 

It is important to stress that none of the issues reported to the FAA and
Transport Canada are directly related either to the causes of these crashes,
or to the changes made afterwards.

 

But they do include problems with some critical systems, including the
motors used to adjust the horizontal stabiliser - the wing on the tailplane
of the aircraft.

 

There have also been faults with engines, flight control systems, hydraulics
and wiring.

 

The horizontal stabiliser, in particular, is vital for keeping the aircraft
in controlled flight.

 

It can be adjusted manually, using a wheel by the pilot's knee. But under
certain conditions, for example if the aircraft is going too fast, that may
not be possible due to the aerodynamic loads involved.

 

Joe Jacobsen is a former senior safety engineer at the FAA, which has been
deeply critical of the way in which the agency originally certified the 737
Max.

 

He says the reports do give cause for concern, particularly regarding the
stabiliser motors, wiring and flight control systems. Such issues, he says,
are most likely to be blamed on manufacturing.

 

"If they are not manufacturing-related", he says "then we have a problem
with the system safety analysis, as I don't believe we would have predicted
this number of failures is such a short time span with such a small fleet of
aircraft."

 

Gilles Primeau, a Canadian expert in flight control systems, is also
alarmed. He has previously testified to Canadian lawmakers that in his
opinion the stabiliser trim system on all 737 variants, not just the Max, is
"obsolete", and does not have enough in-built redundancy in case of
failures.

 

He says "a fundamental concept for safety-critical systems is that if the
effects and severity of a failure cause a hazard, then the frequency of
occurrence should be made infrequent enough by design... loss of horizontal
stabiliser position can be catastrophic".

 

Ed Pierson is a former senior manager at Boeing's 737 plant, near Seattle,
who has previously voiced serious concerns about manufacturing standards at
the plant. He says the number of failure and defect reports is "very
troubling".

 

"I'm concerned this is just the tip of the iceberg", he says, adding: "It
makes one wonder what the airline's own maintenance reports say about the
condition of these airplanes, if the mandatory reporting looks like this."

 

'Not unreasonable'

However, not all experts are so alarmed. Dai Whittingham, chief executive of
the UK Flight Safety Committee, has also seen the data.

 

"I don't think it's an unreasonable rate of occurrences," he explains. "With
a fleet that size, it's not an unexpected level of problems, for the length
of time.

 

"They are complex systems, so these things happen"

 

Boeing did not respond to specific questions about the failures featured in
the service difficulty reports.

 

In a statement, it said: "Since the 737 Max returned to service, airlines
have flown nearly 240,000 flights around the world, and are conducting more
than 1,300 flights every day.

 

"The in-service reliability is greater than 99%, and is consistent with
other commercial airplane models".

 

People close to the 737 Max programme do, however, acknowledge that there
have been specific issues with stabiliser trim motors, and that changes have
been made to rectify them.

 

The BBC also understands that regular weekly meetings take place between the
aerospace giant and representatives of the engine manufacturer CFM
International, in part to address the root causes of failures and in-flight
shutdowns.

 

The FAA, meanwhile, said: "When we returned the 737 Max to service, we noted
that routine incidents would occur with the aircraft, just as they do with
every other make and model of aircraft.

 

"The FAA addresses these issues through the same Continued Operational
Safety process that we provide for the entire US commercial fleet. We have
seen no reported incidents attributable to the redesigned automated flight
control system on the Max."-BBC

 

 

 

Covid: Shares hit as new variant rattles investors

Stock markets across the world have fallen sharply after the discovery of a
new Covid variant raised fears over the economic recovery.

 

The FTSE 100 index of leading UK shares closed 3.7% down, while main markets
in Germany, France and the US also sank.

 

Shares in airlines and travel firms were hit hard, with BA-owner IAG and
Wizz Air down 15%. Tui shed 10%.

 

The UK and other nations have introduced a ban on flights from six southern
African countries.

 

UK Health Secretary Sajid Javid said scientists were "deeply concerned"
about the new Covid strain and its potential to evade immunity.

 

The UK has temporarily banned flights from South Africa, Namibia, Zimbabwe,
Botswana, Lesotho and Eswatini starting from midday on Friday until 04:00 on
Sunday.

 

All six counties are being added to the UK's travel red list. It means that
any British or Irish resident arriving from the countries after 04:00 on
Sunday will have to quarantine in a hotel, with those returning before that
being asked to isolate at home.

 

The FTSE 100 index suffered its biggest one day drop in more than a year.
Shares of major UK lenders HSBC, Lloyds Bank, NatWest and Barclays all fell
about 7% as investors scaled back expectations of a Bank of England interest
rate rise in December.

 

The biggest FTSE 100 riser was food delivery firm Ocado, up 4.5%, on
anticipation that online firms could be a beneficiary if tighter
restrictions are reintroduced.

 

Cruise operator Carnival suffered a 15% slide, making it the biggest faller
on the FTSE 250, while EasyJet tumbled 11.5%.

 

Neil Wilson, chief market analyst at Markets.com said investors fear a new
Covid variant "will lead to fresh lockdowns, mobility restrictions and lower
economic growth".

 

On Wall Street, the Dow Jones index slumped 2.8% in its shortened trading
day following Thursday's Thanksgiving holiday.

 

"It's Black Friday today for the retailers, but it's 'Red Friday' right now
for the stock market," said Patrick O'Hare at Briefing.com.

 

Concern the new variant could slow global economic growth sent oil prices
sharply lower. US WTI crude tumbled 11.3% to $69.53 per barrel, while
European benchmark Brent retreated 10.2% to $73.81. The price of gold, a
haven for investors in troubled times, rose.

 

Despite the fall in the FTSE 100, the index is still trading nearly 12%
higher than it was a year ago.

 

Movements on FTSE 100 in 2021

A number of other countries - such as Germany, Italy and Israel - have
banned flights from the six southern African nations.

 

Both Germany and France's leading stock market indexes fell by more than 3%
on Friday.

 

European Commission president Ursula von der Leyen tweeted that other EU
nations should also "activate the emergency brake" to stop travel from these
countries.

 

Overnight stock markets in Japan, Hong Kong and Australia also fell as did
indexes in India and South Korea.

 

Oil prices also declined on fears the new Covid strain could lead to
restrictions and dampen demand. Brent crude extended earlier declines to
fall by 5.86% to $77.43 a barrel by early afternoon.

 

"The drop in the oil price is the market's way of saying it is worried about
a reduction in economic activity," said Russ Mould, investment director at
AJ Bell.

 

In London, shares in oil giant BP dropped by 6.2%% while rival Shell also
saw its share price fall by more than 4.6%.

 

But Mr Mould added: "The flipside of falling commodity prices is that a
weaker oil price should provide some relief in terms of inflationary
pressures.

 

"That may cause central banks to be more cautious towards raising rates in
the near-term, however it does depend on whether the new Covid strain causes
significant disruption or can be contained as best as possible in a rapid
manner."

 

Mr Javid said more needed to be learned about the new Covid variant. Only 59
confirmed cases have been identified in South Africa, Hong Kong and Botswana
so far.

 

However, he said the variant had a significant number of mutations, "perhaps
double the number of mutations that we have seen in the Delta variant".

 

He said that adding the six countries to the red list was about "being
cautious and taking action and trying to protect, as best we can, our
borders".

 

How worrying is the new Covid variant?

Covid variants: Do we need new vaccines yet?

BA said: "We'll be contacting affected customers with information about
their flight."

 

It added it was advising passengers to monitor the latest travel advice with
the UK government and on the BA website.

 

Virgin Atlantic said its flights from Johannesburg to London Heathrow would
be cancelled between midday on Friday to early on Sunday morning.

 

"We're currently reviewing our schedule of South Africa operations for the
coming week," it added.

 

The carrier said any customers booked to travel to or from South Africa with
Virgin Atlantic should check on the company's website. If they have booked
through third parties or agents, they should get in touch with them.-BBC

 

 

 

Poorest face food crisis amid fertiliser shortage

A global shortage of fertilisers is driving up food prices and leaving
poorer countries facing crisis, says the boss of a major fertiliser firm.

 

Svein Tore Holsether, chief executive of Yara International, said higher gas
prices were pushing up fertiliser costs and affecting food prices worldwide.

 

Fertiliser requires large amounts of gas in its production.

 

Mr Holsether said Yara had been forced to cut some production due to higher
gas prices, which had led to shortages.

 

The chief executive said developing countries would be hit hardest by the
shortages, with crop yields declining and food prices rising.

 

"It's really scary, we are facing a food crisis and vulnerable people are
being hit very hard," he told the BBC's Today programme.

 

"It's impacting food prices all over the world and it hits the wallets of
many people. But for some people, especially in the developing world, this
is not only a question about the wallet, but it's a question of life or
death."

 

Less fertiliser, Mr Holsether said, meant farmers in developing countries
would not be able to plant as efficiently, leading to smaller crops.

 

Farmers apply fertilizers to boost yields of crops such as corn, canola and
wheat. The process of creating ammonia, which is present in many
fertilisers, currently relies on hydropower or natural gas.

 

'Volatile'

The increase in gas prices in recent months has been triggered by several
factors which have increased demand, including the unlocking of economies
during the pandemic and reduced wind or rain for renewable power.

 

This has led to a sharp rise in the cost of producing fertiliser, with the
price of ammonia - the product Yara International produces more than anyone
in the world - up 255% on last year.

 

Mr Holsether said the situation was "very volatile" and called for support
and funding for the World Food Programme "to avoid famine at massive scale".

 

He said that last year Yara donated 40,000 tonnes of fertiliser, which
resulted in small-hold farms in East Africa tripling their crop yields.

 

"It says a lot about the impact that fertiliser can have," he added.-BBC

 

 

 

Black Friday on track to beat last year's sales

Black Friday sales are on track to beat the bumper shopping bonanzas of the
last two years, latest data suggests.

 

Barclaycard, which processes about £1 in every £3 spent using cards, said by
17:00 GMT, there were 23% more transactions than that point in 2020.

 

And the firm said there was a 2.4% rise in the volume of payments compared
with the same period on Black Friday 2019.

 

Analysts PwC predict £8.7bn will be spent on Friday, twice the amount spent
last year, during lockdown.

 

It is also higher than the £7.8bn spent before the pandemic in 2019.

 

The increase comes despite warnings to expect less generous discounts and
some shortages.

 

Black Friday, which began in the US, sees retailers slash prices to entice
shoppers ahead of the Christmas period.

 

It is officially on Friday 26 November but retailers' campaigns span the
whole month and started earlier than ever this year, with some in October.

 

Rob Cameron, chief executive of Barclaycard Payments, said Black Friday was
off to a "strong start" despite the country's economic challenges.

 

"As we reach the end of the Black Friday, it is great to see that the trend
we have been seeing throughout the day has continued, and retailers will be
happy that today's trading figures have surpassed those secured in 2019.

 

"They will be hoping for this spending pattern to continue, not only in the
last few hours of trading, and into Cyber Monday, but also in the run up to
the festive season."

 

Metapack, a firm that connects major retailers with parcel delivery
services, said data indicated that the biggest shipping days would take
place on Monday and Tuesday, the same as last year.

 

PwC predicts about 60% of adults in the UK will make purchases, spending an
average of £280 each.

 

But people are not only venturing out for shopping trips. On Friday,
protestors gathered at Amazon buildings in the UK, US and Europe, with
unions, equality and environmental groups saying Black Friday "epitomises an
obsession with over-consumption".

 

Meanwhile, Extinction Rebellion has targeted Amazon depots in the UK,
blocking entrances and access roads.

 

Linda Ellett, head of consumer markets at analysts KPMG, said deals were
likely to be worse this year as retailers struggled with global supply
issues linked to the pandemic, and shortages of HGV drivers and warehouse
staff.

 

Black Friday is the first big test for supply chains in the all important
"golden quarter" for retailers.

 

Shoppers have been buying early, worried they won't get the presents they
want if they leave it until the last minute this year.

 

Black Friday started as a one-day event but is now almost a month long
blizzard of promotions.

 

But expect fewer deals overall this time around amid all the problems over
stock availability and labour shortages. Many retailers can ill afford to
slash prices when their costs are soaring.

 

Retailers also want to smooth out demand to try to reduce the pressure on
distribution centres where goods are picked, packed and despatched over the
big Black Friday weekend.

 

A lot of businesses have been removing next day delivery options to help
them cope.

 

Some businesses, especially smaller independents, will shun this event
altogether.

 

It may have a lost a bit of its lustre, but Black Friday is still a massive
shopping event. And it will probably be the most well organised retailers
with scale and the biggest clout over suppliers who will cope the best.

 

Presentational grey line

There are concerns some retailers will not be able to meet demand on the
day, leading to long waits for orders to be processed and delivered.

 

But analysts say most brands have spent months preparing for the sale and
will have enough stock - although shoppers will not always get their first
choice of product.

 

John Lewis told the BBC: "We've worked closely with our suppliers and we are
confident we've got an extensive range of deals across a wide range of
categories that represent great value for our customers."

 

AO World, which has hired 500 extra drivers ahead of the day, said: "Like
all electrical retailers, we are currently unable to get all the stock we
need in categories like gaming to meet customer demand largely because of
global microchip shortages.

 

"We are working closely with our partners so that our customers continue to
get the exceptional service and range they rely on."

 

Metapack thinks most retailers will avoid a "perfect storm" but a few could
be unlucky.

 

"We've already seen retailers reach out and suggest customers buy early for
Christmas which should ease the pressure," said senior vice president Tom
Forbes.

 

Some big brands such as M&S and Next have shunned Black Friday this year,
with M&S again saying its focus was on "offering great value throughout the
whole season".

 

Many independent shops have also opted-out as they cannot afford to offer
deep discounts in the vital Christmas shopping period.

 

Mike Cherry, chairman of the Federation of Small Businesses, urged shoppers
to support smaller local businesses who are "pinning their hopes to a bumper
festive season" after last year's restrictions.

 

He said: "Rather than reaching for the same old brands - where deals might
not be all they seem in any case - shop bespoke, receive one-to-one personal
service and give some new restaurants, cafes and pubs a try."

 

Shoppers have also been warned to check whether offers are all they seem.

 

An investigation by consumer rights group Which? found that 92% of Black
Friday deals in 2020 were the same price or cheaper in the six months before
the event.

 

The Potions Cauldron gift shop in York is one of the independent retailers
not taking part in Black Friday.

 

Manager Phil Pinder thinks it's an American invention driven by retailers
like Amazon who want to "squeeze everyone else out".

 

"I read a story saying that some of the electrical retailers are going to
run out of stock by Christmas from doing Black Friday deals.

 

"I'm not playing that game... it seems illogical."

 

The shop, which sells magical themed drinks, sweets and gifts, has been
doing well this year but it is struggling with product shortages due to
supply chain issues.

 

Phil says it is missing about £50,000 of stock it hoped to sell before
Christmas which is "a real headache".

 

His message to shoppers this festive season is buy early: "If you want to
get a specific present, go out and get it now. There are probably not going
to be many of those last minute sales this Christmas because I don't think
the retailers will have the stock."-BBC

 

 

 

Telecom Italia loses CEO in boardroom clash amid KKR approach

(Reuters) - Telecom Italia (TIM) (TLIT.MI) lost its fourth chief executive
in six years on Friday after Luigi Gubitosi threw in the towel, following a
clash with top investor Vivendi (VIV.PA), a week after a $12 billion
takeover proposal by U.S. fund KKR (KKR.N).

 

The former phone monopolist said in a statement the head of TIM Brazil,
Pietro Labriola, had been named general manager so as to ensure the group
continued to operate smoothly, confirming what sources had told Reuters
earlier on Friday.

 

 

Chairman Salvatore Rossi, a former central bank official, took on Gubitosi's
remaining powers, including the oversight of TIM's assets which matter for
Italy's national security.

 

The CEO had offered to relinquish its responsibilities on Thursday, saying
in a letter he did not want to stand in the way of the board giving prompt
consideration to KKR's approach.

 

 

TIM said it had set up a special committee headed by Rossi to study the
offer with the help of advisers it was preparing to appoint.

 

TIM's nominations committee will work with headhunters Spencer Stuart to
ensure a stable leadership for the group over the medium term, taking into
account the evolution of TIM's structure and assets, it said.

 

Sources had said the board would also discuss the threat to earnings from a
soccer rights deal that has failed to help revenue and has contributed to
two profit warnings.

 

TIM's disappointing results have strengthened Vivendi's hand in pushing out
Gubitosi who had been brought in by rival TIM investor Elliott in 2018.

 

Gubitosi remained on as a director, preventing Labriola from joining the
board and being named as CEO on Friday, a role which sources said he may
take on at a later stage.

 

STALLING

 

Gubitosi, in his letter to the board, criticised directors for stalling on
KKR's offer to please some shareholders.

 

The statement TIM issued at the end of a six-hour board meeting made no
mention of granting KKR access to TIM's data for due diligence.

 

Gubitosi had rejected speculation that he was close to KKR, which he first
brought on board last year, striking a 1.8 billion euro deal that handed the
fund a 37.5% stake in TIM's so-called last-mile network reaching into
people's homes.

 

TIM's board first examined on Sunday KKR's non-binding proposal to take it
private in a 33 billion euro deal including debt.

 

The offer followed a downgrade of TIM's debt that pushed it further into
junk territory a week ago, which two sources said had hastened KKR's
decision because TIM was at risk of breaching bank covenants.

 

Auditors have raised fresh concerns over the 1 billion euro deal Gubitosi
struck with DAZN to stream Italy's top-flight soccer matches, another two
sources close to the matter told Reuters.

 

One of the sources said a further downgrade to TIM's financial outlook
cannot be ruled out, in what would be a fresh blow to holders of its debt,
already equal to around four times TIM's core profit.

 

STRATEGIC ASSET

 

The face-off between Gubitosi and Vivendi is the latest boardroom crisis at
TIM, which has had three CEOs since 2015, when the French media group began
building its 24% stake.

 

The takeover offer for the whole of TIM comes as Italy prepares to spend 6.7
billion euros of European Union recovery fund to speed up ultra-fast
broadband rollout across the nation.

 

TIM's fixed network, which the government is keen to see upgraded to fibre,
is Italy's main telecoms infrastructure and Rome has said its response to
KKR will hinge on plans for the network.

 

Rome has special powers to block moves on strategic companies such as TIM
but the executive of Prime Minister Mario Draghi has hailed KKR's interest
as good news for Italy.

 

Sources have said KKR, which consulted the government before tabling its
offer, plans to carve out the network and give state investor CDP -
currently TIM's second-biggest shareholder - a leading role in overseeing
it. ($1 = 0.8874 euros)

 

 

 

Equities, oil prices, U.S. Treasury yields all drop on COVID variant fears

(Reuters) - Shares tumbled on Wall Street on Friday as they reopened after
Thanksgiving, while European stocks saw their biggest sell-off in 17 months
and oil prices plunged by $10 per barrel as fears over a new coronavirus
variant sent investors scurrying to safe-haven assets.

 

The World Health Organization (WHO) on Friday designated a new COVID-19
variant detected in South Africa with a large number of mutations as being
"of concern," the fifth variant to be given the designation. read more

 

 

Unofficially, the Dow Jones Industrial Average (.DJI) closed down 2.53% at
34,899.34 in its largest percentage drop in more than a year. The S&P 500
(.SPX) lost 2.27%, its worst one-day drop since Feb. 25, and the Nasdaq
Composite (.IXIC) dropped 2.23%, the biggest one-day route in two months.

 

U.S. markets closed early on Friday after being shut all day on Thursday for
the Thanksgiving holiday.

 

The benchmark STOXX 600 index (.STOXX) ended 3.7% lower on the day, leaving
it down 4.5% for the week. The volatility gauge (.V2TX) for the main stock
market hit its highest in nearly 10 months.

 

Companies that had benefited from an easing of COVID-related restrictions
this year, including AMC Entertainment (AMC.N), plane engine maker Rolls
Royce (RR.L), easyJet (EZJ.L), United Airlines (UAL.O) and Carnival Corp
(CCL.N) all fell.

 

Retailers dropped as Black Friday, the start of the holiday shopping season,
kicked off as the new variant fuelled concerns about low store traffic and
inventory issues. read more

 

In Europe, the travel and leisure index (.SXTP) plummeted 8.8% in its worst
day since the COVID-19 shock sell-off in March 2020.

 

"Bottom line is this is showing that COVID is still the investor narrative,
a lot of today’s movement is driven by the South African variant," said Greg
Bassuk, chief executive officer of AXS Investments in Port Chester, New
York.

 

"We have been talking about four or five factors that have been driving the
last couple of months' activity – inflation fears, some economic data, Fed
policy – but what we have seen over the last year is that big developments
with respect to COVID really have ended up eclipsing some of those other
factors by a substantial degree and that is what is driving today’s market
activity."

 

Little is known of the variant detected in South Africa, Botswana and Hong
Kong, but scientists said it has an unusual combination of mutations and may
be able to evade immune responses or make the virus more transmissible.

 

Britain said the new variant was the most significant variant to date and
was one of several countries to impose travel restrictions on southern
Africa. read more

 

The European Commission also said it wanted to consider suspending travel
from countries where the new variant has been identified, though the WHO
cautioned against hastily imposing such restrictions. read more

 

Global shares (.MIWD00000PUS) fell 1.81%, their biggest down day in more
than a year. France's CAC 40 (.FCHI) shed 4.8%. The UK's FTSE 100 (.FTSE)
dropped 3.6%, while Germany's DAX (.GDAXI) fell 4.2% and Spain's IBEX
(.IBEX) lost 5.0%.

 

Malaysian rubber glove maker Supermax (SUPM.KL), which soared 1500% during
the first wave of the pandemic, leapt 15%.

 

MSCI's index of Asian shares outside Japan (.MIAPJ0000PUS) dropped 2.44%,
its sharpest fall since late July.

 

In commodities, oil prices plunged. Gold prices reversed earlier gains seen
amid the move away from riskier assets.

 

U.S. crude was last down 12%, at $69.02 per barrel by 1:21 p.m. EST (1812
GMT). Brent crude dropped 10.5% to $73.59.

 

Spot gold prices were down 0.09%.

 

As investors dashed for safe-haven assets, the Japanese yen strengthened
1.87% versus the greenback, while sterling was last trading at $1.3331, up
0.08% on the day.

 

The dollar index fell 0.757%, with the euro up 1% to $1.1318.

 

U.S. Treasury debt yields posted their sharpest drop since the pandemic
began. Treasuries benchmark 10-year notes last rose to yield 1.4867%. The
2-year note last rose to yield 0.4941%, from 0.644%.

 

"A flight to safety is underway with the 10-year U.S. Treasury yield down,"
said Keith Lerner, co-chief investment officer at Truist Advisory Services.
"The proximate cause of the sell-off is yesterday’s announcement of a new
COVID-19 variant in South Africa, which investors fear could weigh on
economic growth."

 

The market swings come against a backdrop of already growing concern about
COVID-19 outbreaks driving restrictions on movement and activity in Europe
and beyond. read more

 

Markets had previously been upbeat about the strength of economic recovery,
despite growing inflation fears.

 

 

The Thomson Reuters Trust Principles.

 

 

 

What investors are saying about the new virus variant

(Reuters) - Wall Street stock indexes dropped at the open after the U.S.
Thanksgiving break, Treasury yields slid and oil hit two-month lows as fears
of a possibly vaccine-resistant coronavirus variant sent investors scurrying
to safe-haven assets. read more

 

Asian and European countries rushed to tighten restrictions on Friday after
a new and possibly vaccine-resistant coronavirus variant was detected in
South Africa, with Singapore and India announcing stricter border controls
and more rigorous testing.  

 

 

COMMENTS:

 

EDWARD MOYA, SENIOR MARKET ANALYST, OANDA, NEW YORK

 

“After the fed minutes it seems likely everybody was expecting an
accelerated Fed taper. If we continue to hear more of a greater spreading of
this new variant, you might start to see that the argument will be made that
no, we need to gradually exit stimulus here and we’re not completely sure
how the vaccines will hold up against this and possibly more variants down
the road as we’re nowhere near getting the rest of the world vaccinated.”

 

“What has really complicated today was that we have options expiration day
and extremely thin conditions, so I think ultimately when everybody is back
next week, if this variant concern continues to dominate the headlines, then
you’ll start to see the dollar resume its safe-haven trade.”

 

GREG BASSUK, CEO, AXS INVESTMENTS PORT CHESTER, NEW YORK

 

“Bottom line is this is showing that Covid is still the investor narrative,
a lot of today’s movement is driven by the South African variant. We have
been talking about four or five factors that have been driving the last
couple of month’s activity – inflation fears, some economic data, Fed policy
– but what we have seen over the last year is that big developments with
respect to Covid really have ended up eclipsing some of those other factors
by a substantial degree and that is what is driving today’s market
activity.”

 

“Longer-term we are very constructive and bullish on stocks having much
longer legs into 2022 with the economy reopening, supply chain issues
becoming more mitigated. But one thing we have seen that has been consistent
in the last year and a half has been some of these more outsized impacts or
developments with respect to Covid really has been the one thing that has
shaken the markets to a greater extent.”

 

“We see today’s activity and what will likely spill over into next week as a
buying opportunity in the sense that it is another wrinkle here with the
South African variant but while the immediate term market slides could be
significant and continue into early December, bigger picture this will be a
buying opportunity to move in there on this dip.”

 

JACK ABLIN, CHIEF INVESTMENT OFFICER, CRESSET CAPITAL MANAGEMENT, CHICAGO

 

“It is pretty amazing, we had such strong economic news come out on
Wednesday. I do think there is something to this, it is obviously worth
investigating. I think the latest news we heard was that they had spotted
this variant in Belgium so this isn’t just isolated in South Africa. I would
say initially, the vaccination rate in South Africa is very low and is
probably fertile ground for these variants. It certainly begs further
watching. Whatever we are going to see today is going to be exaggerated just
because of a lack of liquidity.”

 

“It certainly begs further study and looking into but my first reaction is
anything we are going to see today is overdone so if we end up down a lot,
it will likely turn out to be a buying opportunity.”

 

BIPAN RAI, NORTH AMERICAN HEAD OF FX STRATEGY, CIBC, TORONTO

 

“When you say risk-off it basically means markets are closing out extended
positioning and one of the more popular trades over the last several weeks
has been to be long US dollars, and I think the squaring up of that is
really behind the dollar’s move for today. I don’t think it’s any sort of
indication that the dollar’s lost its safe-haven status. The near-term move
is mostly about extended positioning and closing those out, once that
becomes a little bit more finely balanced and if we are in a risk-off
scenario then I would expect the dollar to continue to outperform.”

 

“It feels like this news about the scariant, let’s call it, because we don’t
have a name for it, really is triggering a lot of risk-off tendencies across
the markets. Really if we’re looking at something like this where we have
new mutations on mutations of a spike protein it almost feels like the
initial working assumption for most market participants is that this is a
new phase of the pandemic, new lockdowns and restrictions will maybe be put
in place, and it certainly feels like we’re going to need a new vaccine as
well. If that is the case that introduces an additional degree of
uncertainty that we didn’t take into account previously.”

 

BRIAN JACOBSEN, SENIOR INVESTMENT STRATEGIST, ALLSPRING GLOBAL INVESTMENTS,
MENOMONEE FALLS, WISCONSIN

 

“Like the virus, this might be something that never really goes away
completely. We just learn to live with it and manage around it. It’s not the
virus itself that market fear, but policy reactions to the virus. If there
are new restrictions or enhanced restrictions on activity, then we could see
some spillover into the next week and month. Some countries, like the U.S.
and U.K., might not react to it as much as countries like China with their
zero-COVID strategy. Just as supply chains looked like they were healing,
this could cause some setbacks.”

 

PETER RUTTER, HEAD OF EQUITIES AT ROYAL LONDON ASSET MANAGEMENT

 

"This news is putting the handbrake on markets. This could be the moment
that people look back on as derailing the economic recovery and rate rises.
What we have is a big insertion of uncertainty rather than something
material but markets don't like that.

 

"The very fact we don't know, is what's concerning the market. There is a
huge range of outcomes that can happen. We could have serious lockdowns or
we get no lockdowns and a booming economy."

 

STEEN JAKOBSEN, CHIEF INVESTMENT OFFICER, SAXO BANK:

 

"A new Covid wave is leading investors to fly to safety, provoking yields to
drop roughly 10 bps across the whole US yield curve. However, we expect the
bond rally to be short-lived for several reasons. First, the market has
learnt through earlier new strains that Covid is temporary. Secondly, a
renewal of lockdown measures would make supply chain bottlenecks worse,
introducing even more inflationary pressures to the economy. Therefore, it’s
necessary for central banks to stop stimulating demand, keeping intact the
recent Fed’s hawkish tilt.

 

SCOTIABANK STRATEGISTS

 

"Given that COVID has hardly been contained globally at this point and that
we do not yet know whether this new variant, with all its mutations, is a
greater threat, the market’s reaction seems a little excessive.

 

"But investors are prone to shoot first and ask question later and not stand
in the way of these sorts of position unwinds. The process may have a little
further to run. Recall that seasonal trends for the U.S. dollar tend to turn
more negative in December; market volatility might be the sort of cover
markets need to lighten up on (rates and dollar) positioning now and
reassess prospects in January."

 

SUSANNAH STREETER, SENIOR INVESTMENT AND MARKETS ANALYST, HARGREAVES
LANSDOWN

 

"Fear has gripped the financial markets with the travel industry flying into
another violent storm, after the discovery of a new COVID strain which could
be far more contagious and may render vaccines less effective."

 

PETER CHATWELL, HEAD OF MULTI-ASSET STRATEGY AT MIZUHO INTERNATIONAL

 

The European lockdowns on their own would have meant soft Q4 GDP growth, but
a Q1 rebound. US, UK, Asia all looked unaffected by Europe’s problem. If the
new variant does deliver its potential (usurping Delta, and reducing vaccine
efficacy) we need to think about a globally soft/flat Q4 and Q1 GDP growth.
Vaccine efficacy will determine the severity of lockdowns, and therefore
whether this becomes another recession.

 

RBC CAPITAL MARKETS, EUROPE:

 

It is the threat of vaccine escape that causes the market reaction in both
equities (down) and bonds (up). As long as markets are faced with a familiar
virus situation that can be overcome with a sufficiently crafted and
executed vaccination strategy, the reactions will be muted, as we have seen
with the short-lived bond market rally last week when new lockdowns were
announced in Europe. This new variant, however, creates a potential threat
to the known responses and thus creates a more lasting market response.

 

HOLGER SCHMIEDING, CHIEF ECONOMIST AT BERENBERG:

 

At this stage, it is too early to assess the potential economic
consequences. Any new wave could cause serious economic damage. As one
potentially mitigating factor, the world is now on high alert and has ramped
up its capacity to develop, adjust and produce vaccines.

 

TAKASHI HIROKI, CHIEF STRATEGIST, MONEX, TOKYO

 

"This variant is a new risk for markets. We can't tell how far it can evade
vaccines."

 

RAY ATTRILL, HEAD OF FX STRATEGY, NAB, SYDNEY

 

"People are reacting with the uncertainty about what this means. You shoot
first and ask questions later when this sort of news erupts."

 

MOH SIONG SIM, CURRENCY ANALYST, BANK OF SINGAPORE

 

"We still don't know how infectious the virus is ... it's a general
uncertainty. Markets are anticipating the risk here of another global wave
of infections if vaccines are ineffective.

 

"Reopening hopes could be dashed."

 

MARK ARNOLD, CIO, HYPERION ASSET MANAGEMENT, BRISBANE

 

"I don't think there's any going back to the pre-COVID world. We're just
going to get mutations through time and that's going to change the way
people operate in the economy. That's just reality."

 

SHINICHIRO KADOTA, SENIOR FX STRATEGIST, BARCLAYS, TOKYO

 

"We see Germany considering a lockdown, so this new variant and flare-up in
the COVID situation poses some risk to market sentiment in general.

 

"If the COVID situation worsens, then dollar-yen could go down further, but
otherwise the monetary policy divergence is definitely going to be weighing
on the yen in the medium term."

 

MARTIN WHETTON, HEAD OF FIXED INCOME, CBA, SYDNEY

 

"Keep an eye on the new COVID-19 variant. None of us are virologists, but
all of us have seen the impact this has had on the intended path of central
bank policy and markets."

 

JEFFREY HALLEY, ANALYST, OANDA, JAKARTA

 

"The UK has paused flights from South Africa and five other neighbouring
countries, and we can expect more of this elsewhere. The complacency seen
with the emergence of the delta variant in India being a lesson harshly
learned.

 

"The one bull in the China shop that could truly derail the global recovery
has always been a new strain of COVID-19 that swept the world and caused the
reimposition of mass social retractions. All we know so far is the B.1.1.529
is heavily mutated, but markets are taking no chances."

 

The Thomson Reuters Trust Principles.

 

 

 

Wall St Week Ahead: COVID-19 fears reappear as a threat to market

(Reuters) - COVID-19 has resurfaced as a worry for investors and a potential
driver of big market moves after a new variant triggered alarm, long after
the threat had receded in Wall Street's eyes.

 

Worries about a new strain of the virus, named Omicron and classified by the
World Health Organisation as a variant of concern, slammed markets worldwide
and dealt the S&P 500 index (.SPX) its biggest one-day percentage loss in
nine months. The moves came a day after the U.S. Thanksgiving holiday when
thin volume likely exacerbated the moves. read more

 

With little known about the new variant, longer term implications for U.S.
assets were unclear. At least, investors said signs that the new strain is
spreading and questions over its resistance to vaccines could weigh on the
so-called reopening trade that has lifted markets at various times this
year.

 

The new strain may also complicate the outlook for how aggressively the
Federal Reserve normalizes monetary policy to fight inflation. read more

 

"Markets were celebrating the end of the pandemic. Slam. It isn't over,"
said David Kotok, chairman and chief investment officer at Cumberland
Advisors. "All policy issues, meaning monetary policy, business
trajectories, GDP growth estimates, leisure and hospitality recovery, the
list goes on, are on hold."

 

The S&P 500 fell by a third as pandemic fears mushroomed in early 2020, but
has more than doubled in value since then, though the pandemic's ebb and
flow has driven sometimes-violent rotations in the types of stocks investors
favor. The index is up more than 22% this year.

 

Before Friday, broader vaccine availability and advances in treatments made
markets potentially less sensitive to COVID-19. The virus had dropped to a
distant fifth in a list of so-called "tail risks" to the market in a recent
survey of fund managers by BofA Global Research, with inflation and central
bank hikes taking the top spots.

 

On Friday, however, technology and growth stocks that had prospered during
last year's so-called stay-at-home trade soared, including Zoom
Communications (ZM.O), Netflix Inc (NFLX.O) and Peloton (PTON.O).

 

At the same time, stocks that had rallied this year on bets of economic
reopening may suffer if virus fears grow. Energy, financials and other
economically sensitive stocks tumbled on Friday, as did those of many
travel-related companies such as airlines and hotels.

 

U.S. officials said Friday they would impose travel restrictions on eight
southern African countries in response to the new variant found in South
Africa. It has also been reported in Israel and Belgium. read more

 

Friday's swings also sent the Cboe Volatility Index (.VIX), known as Wall
Street's fear gauge, soaring and options investors scrambling to hedge their
portfolios against further market swings. read more

 

Andrew Thrasher, portfolio manager for The Financial Enhancement Group, had
been concerned that recent gains in a handful of technology stocks with
large weightings in the S&P 500, including Apple Inc (AAPL.O), Amazon.com
Inc (AMZN.O), Microsoft Corp (MSFT.O), were masking weakness in the broader
market.

 

"This set the kindling for sellers to push markets lower and the latest
COVID news appears to have stoked that bearish flame," he said.

 

Some investors said the latest COVID-19 related weakness could be a chance
to buy stocks at comparatively lower levels, expecting the market to
continue rapidly recovering from dips, a pattern that has marked its march
to record highs this year.

 

"We've had numerous days when economic optimism collapses. Each of these
optimism collapses were a good buying opportunity," wrote Bill Smead,
founder of Smead Capital Management, in a note to investors. Among the
stocks he recommended were Occidental Petroleum (OXY.N) and Macerich Co
(MAC.N), down 7.2% and 5.2% respectively on Friday.

 

One of several wild cards is whether virus-driven economic uncertainty will
slow the Federal Reserve's plans to normalize monetary policy, just as it
has started unwinding its $120 billion a month bond buying program.

 

Futures on the U.S. federal funds rate, which track short-term interest rate
expectations, on Friday showed investors rolling back their view of a
sooner-than-expected rate increase.

 

Investors will be watching Fed Chair Jerome Powell and U.S. Treasury
Secretary Janet Yellen's appearance before Congress to discuss the
government's COVID response on Nov. 30 as well as U.S. employment numbers,
due out next Friday.

 

Investors held out hope that markets could stabilize. Jack Ablin, chief
investment officer at Cresset Capital Management, said moves may have been
exaggerated by lack of liquidity on Friday, with many participants out for
the Thanksgiving holiday.

 

"My first reaction is anything we are going to see today is overdone," Ablin
said.

 

The Thomson Reuters Trust Principles.

 

 

 

WTO postpones major meeting after new variant outbreak

(Reuters) - The World Trade Organization (WTO) became the first major
diplomatic casualty of the new coronavirus variant on Friday when it
postponed its first ministerial meeting in four years due to the
deteriorating health situation.

 

Ministers from WTO members were due to have gathered next week for a meeting
widely seen as a test of the WTO's relevance.

 

The WTO said that its members had agreed late on Friday to postpone the
ministerial conference after the new variant outbreak led to travel
restrictions that would have prevented many ministers from reaching Geneva.

 

No new date has been set for a rescheduled meeting.

 

The World Health Organisation has classified the B.1.1.529variant detected
in South Africa as a "variant of concern", saying it may spread more quickly
than other forms of the virus. Scientists are also seeking to find out if it
is vaccine-resistant.

 

Switzerland, home to the WTO, on Friday banned direct flights from South
Africa and the surrounding region, and imposed test and quarantine
requirements on travel from other countries, including Belgium, Hong Kong
and Israel.

 

The Geneva-based trade body had planned a meeting in person, but the new
restrictions meant delegations of large players such as South Africa and the
Brussels-based European Commission would have been limited to a largely
virtual presence.

 

Even before the postponement the prospects were not bright.

 

The WTO has only managed one update of its global rules in its near 27-year
history, the red tape-cutting Trade Facilitation Agreement, and its 164
members looked far from agreement in its most active talks - on curbing
fishing subsidies and spreading COVID-19 vaccines more widely.

 

India, South Africa and other developing countries are calling for a waiver
of intellectual property (IP) rights for vaccines and other COVID-19
treatments. U.S. President Joe Biden said on Friday he supported a waiver
for vaccines.

 

WTO Director-General Ngozi Okonjo-Iweala said the postponement did not mean
negotiations should stop.

 

"On the contrary, delegations in Geneva should be fully empowered to close
as many gaps as possible. This new variant reminds us once again of the
urgency of the work we are charged with," she said in a statement.

 

Santiago Wills, the Colombian WTO ambassador who chairs the fishing subsidy
talks, said the news was "deflating, to say the least", but pledged to keep
working towards an agreement to save global fish stocks.

 

The Thomson Reuters Trust Principles.

 

 

 

Tesla decides against state aid for German battery plant as Musk opposes
subsidies

(Reuters) - Tesla (TSLA.O) said on Friday it has withdrawn its application
for state aid for its planned battery factory near Berlin as CEO Elon Musk
declared the electric vehicle maker opposed all subsidies.

 

The European Union in January approved a plan that included giving state aid
to Tesla, BMW (BMWG.DE) and others to support production of electric vehicle
batteries and help the bloc to reduce imports from industry leader China.

 

 

Tesla was expected to receive 1.14 billion euros ($1.28 billion) in EU
funding for its battery plant in Gruenheide, Brandenburg under the plan,
with a final decision likely by the end of the year.

 

"Tesla has informed the Federal Ministry of Economics and the Brandenburg
Ministry of Economics... it is withdrawing its IPCEI application for state
funding for the battery factory in Grünheide," a Tesla spokesperson said,
referring to European subsidies allocated to so-called 'Important Projects
of Common European Interest'.

 

 

Construction plans for the plant would not be affected by the decision, the
spokesperson said.

 

"It has always been Tesla’s view that all subsidies should be eliminated,"
Musk posted on Twitter in response to a tweet by another user after Tesla
said it had withdrawn its funding application.

 

"But that must include the massive subsidies for oil & gas. For some reason,
governments don’t want to do that...," Musk added, deviating from the
subject of the factory grant.

 

Tesla itself is investing 5 billion euros in the battery plant, according to
German economy ministry estimates.

 

Meanwhile, construction of a car production site alongside the battery
plant, which Tesla has begun building under pre-approval permits while it
awaits final approval from the regional government, has made good progress
in the last few weeks, a spokesperson for the federal economy ministry said.

 

The electric vehicle maker also applied in November 2020 for regional
funding from Brandenburg, according to the regional government's website.

 

A Brandenburg economy ministry spokesperson said this application had not
been withdrawn.

 

The amount Tesla applied for is undisclosed, but investments worth over 100
million euros are generally given 6.8% of their value, the website says.

 

The latest round of online consultations for the public to express
environmental and other concerns about the car factory and battery plant
closed last week and Tesla CEO Elon Musk has said he hopes to formally begin
production by the end of the year and then ramp up as quickly as possible.

 

Musk has made his irritation for German laws and processes known, saying in
a letter to authorities in April that the country's complex planning
requirements were at odds with the urgency needed to fight climate change.
read more

 

($1 = 0.8876 euros)

 

The Thomson Reuters Trust Principles.

 

 

 

Oil settles down $10/bbl in largest daily drop since April 2020

(Reuters) - Oil prices plunged $10 a barrel on Friday, their largest one-day
drop since April 2020, as a new variant of the coronavirus spooked investors
and added to concerns that a supply surplus could swell in the first
quarter.

 

Oil fell with global equities markets on fears the variant, could dampen
economic growth and fuel demand.

 

 

The World Health Organization has designated the new variant, which it named
Omicron, as "of concern," according to the South African health minister.

 

The United States, Canada, Britain, Guatemala and European countries are
among those to restrict travel from southern Africa, where the variant was
detected. read more

 

Brent crude settled down $9.50, or 11.6%, to $72.72 a barrel, a weekly
decline of more than 8%.

 

U.S. West Texas Intermediate (WTI) crude settled down $10.24 on Friday, or
13.1%, at $68.15 a barrel, declining more than 10.4% on the week in high
volume trading after Thursday's Thanksgiving holiday in the United States.

 

"The market is factoring in a worst case scenario situation in which this
variant causes massive demand destruction," said Bob Yawger, director of
energy futures at Mizuho.

 

Both contracts fell to a fifth week of losses and their steepest falls in
absolute terms since April 2020, when WTI turned negative for the first time
amid a coronavirus-induced supply glut.

 

News of the variant caused ructions in a market previously caught between
producer and consumer nations.

 

"The biggest fear is that it will be resistant to vaccines and be a massive
setback for countries that have reaped the benefits from their rollouts,"
said Craig Erlam, senior market analyst at OANDA.

 

OPEC+ is also monitoring developments around the variant, sources said on
Friday, with some expressing concern that it may worsen the oil market
outlook less than a week before a meeting to set policy. read more

 

Scientists have so far only detected the Omicron variant in relatively small
numbers, mainly in South Africa but also in Botswana, Hong Kong and Israel,
but they are concerned by its high number of mutations which could make it
vaccine-resistant and more transmissible. read more

 

Drug makers Pfizer and BioNTech said if necessary they would be able to
redesign their shot within 6 weeks and ship initial batches within 100 days.
read more

 

South Africa's foreign ministry said it would speak to Britain to try to get
it to reconsider its travel ban.

 

"Our immediate concern is the damage that this decision will cause to both
the tourism industries and businesses of both countries," Foreign Minister
Naledi Pandor said in a statement.

 

Oil prices rose early in the week as the Organization of the Petroleum
Exporting Countries and its allies (OPEC+) suggested it could taper
production in response to a strategic release from large consuming countries
that are members of the International Energy Agency. read more

 

Such a release was likely to swell supplies in coming months, an OPEC source
said, based on findings of a panel of experts that advises OPEC ministers.
read more

 

The forecasts cloud the outlook for a Dec. 2 meeting when the group will
discuss whether to adjust its plan to increase output by 400,000 barrels per
day in January and beyond.

 

"OPEC's initial assessment of the co-ordinated (stockpile) release and the
sudden appearance of a new variant of the coronavirus raises serious
concerns about economic growth and the oil balance in coming months," PVM
analyst Tamas Varga said.

 

 

 

Delta, United not revising South Africa flights amid variant concerns

(Reuters) - Delta Air Lines (DAL.N)and United Airlines (UAL.O) said on
Friday they do not plan any changes to their South Africa-U.S. routes after
the White House said it plans to impose new travel curbs on southern Africa
starting Monday amid concerns about a new COVID-19 variant.

 

Delta and United are the only U.S. passenger carriers that have direct
flights to southern Africa.

 

Delta currently operates service between Johannesburg and Atlanta three
times weekly and the U.S. airline said "there are no planned adjustments to
service at this time."

 

The White House said it plans to bar entry to most non-U.S. citizens who
have been in South Africa and seven other African countries within the last
14 days.

 

Airlines for America, a trade group representing major U.S. passenger and
cargo carriers, said Friday it remains "in communication with the U.S.
government as specifics remain unknown at this time and there are many
unanswered questions. Amid this rapidly evolving situation, it is critical
that U.S. government decisions regarding international travel restrictions
and requirements be rooted in science."

 

United said it "remains committed to maintaining a safe and vital link for
essential supplies and personnel to transit between the African continent
and the United States as feasible. We don’t have any adjustments to our
schedule at this time."

 

United currently operates five flights per week between Newark and
Johannesburg and reiterated Friday it plans to restart service between
Newark and Cape Town on Dec. 1 as scheduled.

 

The Thomson Reuters Trust Principles.

 

 

 

Tanzania: Museveni Heads to Tanzania for Oil Pipeline Talks

Uganda's President Yoweri Museveni is expected in Tanzania at the weekend to
attend an oil and gas meeting, and later hold bilateral talks with his
Tanzanian counterpart Samia Suluhu Hassan.

 

President Museveni, according to aides, will give a keynote speech during
the private sector organised symposium that is set to discuss opportunities
presented by the 1,445km East African Crude Oil Pipeline (EACOP) project.

 

President Museveni's deputy press secretary Farouk Kirunda said that the
Ugandan leader will have a three-day working visit to Tanzania starting
Saturday, where, together with President Suluhu, they will hold talks on the
progress of the $3.5 billion EACOP project to be jointly constructed between
the two countries, and which is expected to connect Uganda's oil fields to
Tanzania's port of Tanga.

The two countries in April this year signed the Host Government Agreement,
Share Holder Agreement (for the pipeline company) and Tariff agreements,
three key agreements to kick off the construction of the East African Crude
Oil Pipeline (EACOP) with France's total and China's CNOOC.

 

But the project still faces financing blues after some European lenders
walked away from requests to finance it.

 

The EACOP project is expected to create over 5,000 jobs directly and over
20,000 others indirectly.

 

Uganda recently secured five acres of land at Tanga in Tanzania to set up a
business complex to monitor the country's expected oil cash inflow from
petroleum exports.

 

The first oil drop from the Albertine Grabben belt is expected to start
flowing in 2025 following the launch of project works of the $3.5 EACOP
project in April.

 

According to an earlier statement by Tanzania's private sector foundation,
the symposium, which kicked off on Friday at the Julius Nyerere
International Convention Centre in Dar es Salaam, is expected to increase
private awareness of the legal, policy and regulatory frameworks for oil and
gas in Uganda and Tanzania and create synergies and areas of cooperation
between private sector companies in the two countries.

 

Participants will include Tanzania and Uganda private and public
stakeholders in the oil and gas industry, private sector associations, legal
firms, insurance firms, logistics providers and national oil companies

 

A symposium is a hybrid event expected to gather in-person over 200
high-level private sector officials from both Uganda and Tanzania, and over
2,000 will follow the discussion virtually.- Monitor.

 

 

 

Nigeria: NDIC Pays N11.76 Billion to 535,815 Depositors of Closed Banks

Benin City — The Nigerian Depositors Insurance Corporation (NDIC) yesterday
said it has paid a total of N11.76 billion as insured sum to 535,815
depositors, while N101.666 billion was also paid as uninsured sum from 1989
to June ,2021.

 

The Managing Director/, Chief Executive Officer, Mr. Bello Hassan, disclosed
this in Benin City, Edo State at the ongoing Edo International Trade Fair.

 

Represented by the Corporation Senior Manager, Benin Zone, Mr. Udofor Ukpom,
Hassan said since the establishment of NDIC in 1989 as a statutory agency of
government with four broad mandates, it has been protecting depositors by
providing an orderly means of resolution and reimbursement in the event of
bank failures.

He listed the four mandates of NDIC as deposit Guarantee, bank supervision,
distress resolution and bank liquidation, with the primary public policy
objectives of contributing to financial system stability.

 

He said:"From inception till date, NDIC has been living up to its mandate
and public policy objectives of contributing to financial system stability
and has paid cumulative amount of N11.76 billion as insured sums to 535, 815
depositors of closed banks while a total of N101.666 billion had been paid
as uninsured sum as at 30 June, 2021. In addition, a total of N6.159 billion
had been paid as liquidation dividend to 1,955 creditors and shareholders of
closed banks."

 

Instructively, the corporation has declared full payment of insured and
uninsured sums to depositors of 18 banks in-liquidation."

 

This implies that the Corporation has realized liiquidation dividend to pay
all depositors of the banks who present themselves for payment.

 

"Likewise, NDIC has continued to strive for a sound, safe and stable
financial system which is pivotal for sustainable economic growth and in
that regard, has responded to innovations in the financial system by
extending deposit insurance cover to MFBS, PMBs, NIBs and MMOs and also to
the recently licensed Payment service banks (PSBs) in order to engender
confidence in the financial system."

 

The NDIC boss advised Nigerians to remain vigilant and not disclose their
ATM details and account information inadvertently and also not patronise the
services of Ponzi schemes and illegal fund managers, who parade themselves
as deposit taking institutions.

 

Earlier, the Managing Director, of Benin Chamber of Commerce, Industry,
Mines and Agriculture (BENCCIMA), Mrs Aina Omo-Ojo, thanked NDIC for coming
to the fair to enlighten the public on its operations and also how to make
sure that as business people they don't lose their hard earned money through
banks.-This Day.

 

 

 

 


 


 


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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.

 


 

 


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

 


 

 

 

 

 

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