Major International Business Headlines Brief::: 29 November 2021
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Major International Business Headlines Brief::: 29 November 2021
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ü Even in tech hub Shenzhen, China's property market succumbs to chills
ü Amazon exec says Omicron's impact on holiday spending uncertain
ü Japan Oct retail sales boosted by fuel-price spike, broad trend still
soft
ü Japan Oct retail sales boosted by fuel-price spike, broad trend still
soft
ü OPEC postponses technical meetings to evaluate Omicron impact -sources
ü U.S. stock futures, oil rally as sentiment steadies
ü U.S. Commerce chief to make pitch for chips funding in Michigan
ü Evergrande shares fall after chairman cuts stake; Fantasia suspends
trading
ü More work needed to create green jobs, report says
ü Nissan to spend $17.6 bln over 5 years in electrification push
ü Covid: BA suspends Hong Kong flights amid crew quarantine
ü UK regulator set to block Meta's Giphy deal - FT
ü Macau casino shares fall after 'illegal gambling' arrests
ü Nigeria: Buhari's Loans, Economic Woes Leave the Nation Poor, Beggarly -
- Ayu
ü Nigeria: Fuel Subsidy Removal - Reallocate Savings to Critical
Infrastructure, Business Leaders Tell Govt
ü Nigeria: Telcos Seek Regulator's Intervention to Address Industry Issues
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Even in tech hub Shenzhen, China's property market succumbs to chills
(Reuters) - Life used to be good for Jerry Tang, who left his rural hometown
in 2014 to become a real estate agent in Shenzhen - China's tech megacity
and one of the world's hottest property markets.
Just a few years ago Tang could make up to 50,000 yuan ($7,800) in a good
month selling apartments. Last year, he was making around 15,000 yuan a
month, but this year that's fallen to about 5,000 yuan and mostly comes from
commission on rentals.
"It's definitely much harder to sell this year," he said. "Buyers are
waiting to see what happens with the market, while developers are
cash-strapped, they are taking time to pay commission to agents."
In Shenzhen - home to 17.6 million people and firms like gaming powerhouse
Tencent Holdings Ltd (0700.HK) and telecommunications giant Huawei
Technologies (HWT.UL) - some smaller realtor offices have closed. Eight real
estate agents Reuters spoke with also say at least a third of their
colleagues have either left the industry or are thinking about it.
Lianjia, a major realtor, plans to shut down a fifth, or about a hundred, of
its offices in Shenzhen, financial news service Caixin reported in
September, citing an internal memo. Lianjia and its parent company KE
Holdings did not respond to requests for comment.
The lack of turnover in Shenzhen's property market and the fallout on the
city's real estate brokers stems in part from deliberate policy efforts over
the past year by local authorities to make apartment prices more affordable,
including requiring higher down payments for second homes and capping resale
prices.
But real estate agents say it also due to the current crisis of confidence
hitting China's property industry, highlighting just how extensively the
sector's woes are reverberating. If Shenzhen - emblematic of China's
meteoric economic rise over the past 40 years - is not immune, then few
places in the country are.
China's property market, which accounts for a quarter of GDP by some
metrics, has been suffering unprecedented stress after policymakers this
year introduced debt caps to rein in excessive borrowing by developers.
That in turn has helped lead to liquidity crises at developers such as China
Evergrande Group (3333.HK), the world's most indebted developer, and Kaisa
Group Holdings (1638.HK). Both of them also happen to be headquartered in
Shenzhen. Policymakers are, however, widely expected to stand firm on the
new rules which are perceived as necessary reform.
Prices for new homes in Shenzhen fell 0.2% in October from a month earlier -
their first drop this year - and in line with the national average. It
remains to be seen, however, if Shenzhen's property prices will suffer the
more sustained, albeit still small declines that have hit some second-tier
Chinese cities this year.
In its favour, the southern tech hub's economy is not much smaller than that
of fellow megacity Shanghai's but Shenzhen has only a third of the land,
ensuring strong underlying demand for apartments.
"Buyers are concerned about Evergrande and contagion, but in Shenzhen they
know other developers would step in to finish projects if they had to," Tang
said.
For some, the tougher curbs and subsequent property market chills are a sign
that speculative buying - often rampant in China as traditionally there have
been few other investment options - could become a thing of the past.
"My parents' generation could close their eyes and point somewhere to invest
their money and get a great return - they could gamble," said Lisa Li, who
works in the investment industry and recently bought a small studio
apartment but found the process nerve-wracking.
"Our generation can't do that, we'd be in trouble," she said.
That's cold comfort, however, for Tang, 30, who says he is thinking of
changing jobs.
"I need savings if I'm to find a girlfriend, and I'm supporting my mum back
home."
($1 = 6.3836 Chinese yuan)
The Thomson Reuters Trust Principles.
Amazon exec says Omicron's impact on holiday spending uncertain
(Reuters) - A senior Amazon.com Inc (AMZN.O) executive said it remains too
early to predict how the Omicron coronavirus variant will impact consumer
spending during the holiday season but suggested that shoppers will press
ahead for now.
"It’s very early in the process of understanding what’s happening with the
new variant," said Dave Clark, chief executive of Amazon's worldwide
consumer business, during a Sunday morning interview on CBS' "Face the
Nation."
Clark said he was "incredibly optimistic" about the ability of scientists
and pharmaceutical companies that have developed effective vaccines to
respond to the new variant while shoppers take stock of developments.
"Consumers are going to wait and see in terms of what happens ... but are
going to move on with their lives into this holiday season," Clark said.
Clark's comments came amid a backdrop of recent supply chain disruptions the
Biden administration has linked to the spread of another coronavirus
variant, Delta.
The United States and other countries are now imposing travel restrictions
after the emerging Omicron variant, first detected in South Africa, began
spreading to other parts of the world. In the Netherlands, Dutch health
authorities said 13 cases were found among passengers on two flights that
landed in Amsterdam on Friday after departing South Africa.
Britain, Denmark and Australia have also found cases in recent days. While
there are not documented cases yet in the United States, health experts said
the variant could already be present.
Clark said consumers for now are forging ahead with reconnecting after
prolonged periods of government-mandated lockdowns and other pandemic
restrictions.
"People want to have a very thoughtful holiday season and want to prepare
themselves to go back out into the world, if you will. And that’s what we’re
seeing in their spending," Clark said.
Separately, he said the pandemic had induced people to reconsider how they
structure their lives and work, contributing to hiring challenges.
"People are looking at their lives so differently through the course of the
pandemic," Clark said. "People have evaluated what kind of jobs do they want
to have, do they want to be in the food service business, do they want to be
in retail, do they want to be in fulfillment, do both people in the family
want to work? What’s the life structure and setup?"
While Amazon has successfully hired people during the current labor
shortage, "it is a challenge," he said.
Inflation, meanwhile, is not currently dragging down consumer spending,
Clark said. Amazon had "a record-breaking Black Friday," he said.
Shoppers are spending on apparel and home decor, an indication they are
planning to come back together, he said. Spending on electronics has dipped,
he said, after people invested in home offices for remote work.
The Thomson Reuters Trust Principles.
Japan Oct retail sales boosted by fuel-price spike, broad trend still soft
(Reuters) - Japan's retail sales rose for the first time in three months in
October, though less than expected, and the underlying private consumption
trend pointed to persistent strains on a fragile economic recovery despite
an easing of COVID-19 curbs.
Following a larger-than-expected contraction in July-September, analysts
expect the world's third-largest economy to rebound this quarter thanks to
an upturn in household spending, while supply-side concerns still loom for
export-reliant businesses. read more
"However, as people are still wary of another virus wave, they're not going
out and spending actively," said Masato Koike, senior economist at Dai-ichi
Life Research Institute, adding that stagnant wage growth is an additional
headwind to fostering solid consumption growth.
Retail sales rose 0.9% in October from a year earlier, government data
showed on Monday, versus the median market forecast for a 1.1% increase. It
followed an upwardly revised 0.5% drop in September.
A 25.9% surge in fuel sales due to rising petroleum product prices boosted
the headline retail figure, while sales of goods other than fuel fell 1.2%
year-on-year. Worryingly, car sales were down 19.5% from a year earlier, the
biggest monthly drop since January 2011, dragged down by supply constraints,
according to a government official.
Compared with the previous month, retail sales grew 1.1% on a seasonally
adjusted basis in October, following an upwardly revised 2.8% gain in
September.
Japan has eased coronavirus restrictions on restaurant hours, large-scale
events and border controls as infections have fallen dramatically and more
than three-fourths of its population is fully vaccinated. read more
Private-sector statistics, however, had shown the comeback of consumer
spending was gradual in October, and analysts said a full recovery in
sectors hit hard by the pandemic such as face-to-face services will take
longer time. read more
"Indeed, there are signs that consumers are finally shedding their caution
as mobility only started to surpass its 2020 level in November," said Marcel
Thieliant, senior Japan economist at Capital Economics. "Spending on
services should finally start to recover in earnest now."
To boost Japan's lukewarm economic recovery, the government earlier this
month announced a record $490 billion stimulus package, including cash
payouts to households with children and subsidies to COVID-hit businesses.
The Thomson Reuters Trust Principles.
Japan Oct retail sales boosted by fuel-price spike, broad trend still soft
(Reuters) - Japan's retail sales rose for the first time in three months in
October, though less than expected, and the underlying private consumption
trend pointed to persistent strains on a fragile economic recovery despite
an easing of COVID-19 curbs.
Following a larger-than-expected contraction in July-September, analysts
expect the world's third-largest economy to rebound this quarter thanks to
an upturn in household spending, while supply-side concerns still loom for
export-reliant businesses. read more
"However, as people are still wary of another virus wave, they're not going
out and spending actively," said Masato Koike, senior economist at Dai-ichi
Life Research Institute, adding that stagnant wage growth is an additional
headwind to fostering solid consumption growth.
Retail sales rose 0.9% in October from a year earlier, government data
showed on Monday, versus the median market forecast for a 1.1% increase. It
followed an upwardly revised 0.5% drop in September.
A 25.9% surge in fuel sales due to rising petroleum product prices boosted
the headline retail figure, while sales of goods other than fuel fell 1.2%
year-on-year. Worryingly, car sales were down 19.5% from a year earlier, the
biggest monthly drop since January 2011, dragged down by supply constraints,
according to a government official.
Compared with the previous month, retail sales grew 1.1% on a seasonally
adjusted basis in October, following an upwardly revised 2.8% gain in
September.
Japan has eased coronavirus restrictions on restaurant hours, large-scale
events and border controls as infections have fallen dramatically and more
than three-fourths of its population is fully vaccinated. read more
Private-sector statistics, however, had shown the comeback of consumer
spending was gradual in October, and analysts said a full recovery in
sectors hit hard by the pandemic such as face-to-face services will take
longer time. read more
"Indeed, there are signs that consumers are finally shedding their caution
as mobility only started to surpass its 2020 level in November," said Marcel
Thieliant, senior Japan economist at Capital Economics. "Spending on
services should finally start to recover in earnest now."
To boost Japan's lukewarm economic recovery, the government earlier this
month announced a record $490 billion stimulus package, including cash
payouts to households with children and subsidies to COVID-hit businesses.
read more
The Thomson Reuters Trust Principles.
OPEC postponses technical meetings to evaluate Omicron impact -sources
(Reuters) - OPEC and its allies have postponed technical meetings to later
this week, giving themselves more time to assess the impact of the new
Omicron coronavirus variant on oil demand and prices, according to OPEC+
sources and documents.
Oil prices crashed together with other financial markets on Friday by more
than 10%, their largest one-day drop since April 2020, as the new variant
spooked investors and added to concerns that a supply surplus could swell in
the first quarter.
Friday's fall was exacerbated by low liquidity due to a U.S. public holiday.
Before Friday, OPEC had already predicted the surplus would grow steeply
after the United States and other major consumers decided to released oil
stocks to help cool down prices.
OPEC and allies known as OPEC+ have move their joint technical committee to
Wednesday from Monday, according to the documents. OPEC would hold a meeting
the same day.
A joint ministerial monitoring committee will meet on Thursday instead of
Tuesday, the documents showed, OPEC+ will also meet the same day, when a
policy decision will likely be announced.
"We need more time to understand what this new variant is and if we need to
overreact or not," one OPEC+ source said.
OPEC+ has been releasing 400,000 barrels per day of oil per month while
winding down its record cuts from last year, when it cut production by as
much as 10 million bpd to address lower demand caused by the virus
lockdowns.
OPEC+ has some 3.8 million bpd of cuts still in place and some analysts have
suggested the group could pause with the increases after the release of
stocks and possible repercussions for demand from new lockdowns to contain
the new variant.
The Thomson Reuters Trust Principles.
U.S. stock futures, oil rally as sentiment steadies
(Reuters) - U.S. stock futures led a market rebound on Monday as investors
prepared to wait a few weeks to see if the Omicron coronavirus variant would
really derail economic recoveries and the tightening plans of some central
banks.
Oil prices bounced more than $3 a barrel to recoup a chunk of Friday's
shellacking, while safe haven bonds and the yen lost ground as markets
latched onto hopes the new variant of concern would prove to be "mild".
While Omicron was already as far afield as Canada and Australia, a South
African doctor who had treated cases said symptoms of virus were so far
mild. read more
"Another key difference is there are far higher vaccination take up rates
globally now compared with when Delta emerged," said Craig James, chief
economist at asset manager CommSec.
"What the news on Omicron does highlight is the need for central banks and
governments to take a cautious approach to removal of economic support and
stimulus."
Trading was erratic on Monday but there were signs of stabilisation as S&P
500 futures added 1.0% and Nasdaq futures 1.2%. Both indices suffered their
sharpest fall in months on Friday with travel and airline stocks hit hard.
EUROSTOXX 50 futures rallied 1.7%, while FTSE futures firmed 1.3%.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS)
eased 0.1%, but found support ahead of its 2021 low. Likewise, Japan's
Nikkei (.N225) recouped early losses to be almost unchanged.
Bonds gave back some of their hefty gains, with Treasury futures down 16
ticks. The market had rallied sharply as investors priced in the risk of a
slower start to rate hikes from the U.S. Federal Reserve, and less
tightening by some other central banks.
Two-year Treasury yields edged up to 0.56%, after falling 14 basis points on
Friday in the biggest drop since March last year. Fed fund futures had
pushed the first rate rise out by a month or so.
The shift in expectations undermined the U.S. dollar, to the benefit of the
safe haven Japanese yen and Swiss franc.
On Monday the dollar had steadied somewhat at 113.71 yen , after sliding
1.7% on Friday. The dollar index held at 96.190, after Friday's 0.7% drop.
The euro was struggling again at $1.1276 , following its rally from $1.1203
late last week.
European Central Bank President Christine Lagarde put a brave face on the
latest virus scare, saying the euro zone was better equipped to face the
economic impact of a new wave of COVID-19 infections or the Omicron variant.
read more
The economic diary is also busy this week with China's manufacturing PMIs on
Tuesday to offer another update on the health of the Asian giant. The U.S.
ISM survey of factories is out on Wednesday, ahead of payrolls on Friday.
Fed Chair Jerome Powell and Treasury Secretary Janet Yellen speak before
Congress on Tuesday and Wednesday.
In commodity markets, oil prices bounced after suffering their largest
one-day drop since April 2020 on Friday.
"The move all but guarantees the OPEC+ alliance will suspend its scheduled
increase for January at its meeting on 2 December," wrote analyst at ANZ in
a note.
"Such headwinds are the reason it's been only gradually raising output in
recent months, despite demand rebounding strongly."
Brent rebounded 4.8% to $76.20 a barrel, while U.S. crude rose 5.2% to
$71.71.
Gold has so far found little in the way of safe haven demand, leaving it
stuck at $1,791 an ounce .
The Thomson Reuters Trust Principles.
U.S. Commerce chief to make pitch for chips funding in Michigan
(Reuters) - U.S. Commerce Secretary Gina Raimondo will on Monday make a
pitch in Michigan for Congress to approve $52 billion to expand U.S.
semiconductor manufacturing even as it continues to review data on the chips
market from companies around the world.
Raimondo is visiting a United Auto Workers local hall and meeting with
Michigan politicians, officials from General Motors Co (GM.N), Ford Motor
(F.N) and Chrysler-parent Stellantis on the chips push.
Detroit's Big Three automakers and other global automakers have been forced
to cut production and even make some vehicles without features like heated
seats or digital speedometers because of semiconductor shortage.
In September, the Commerce Department issued a request for information on
the chips market to automakers, chip companies and others, saying the
information would boost supply-chain transparency, and set a Nov. 8 deadline
to respond.
Raimondo told reporters more than 150 firms "including many companies in
Asia" voluntarily submitted data to the department. "We're very pleased with
the volume of response," Raimondo said. "These are extremely detailed and
we're still evaluating the quality of the submissions."
Raimondo said it will be "several more weeks" before the department will
offer its assessment. She also expects to share a high-level summary but
pledged to protect confidential company data.
She added it is too soon to say if the department will need to invoke
compulsory measures to get additional data: "It's still an option."
On Nov. 17, House and Senate leaders said they will negotiate seeking final
agreement on a bill to boost U.S. technology competitiveness with China and
semiconductor manufacturing. The Senate-approved legislation would award $52
billion for semiconductor manufacturing and authorize $190 billion to
strengthen U.S. technology and research.
"We need the House to pass its version of the CHIPS Act," Raimondo plans to
say Monday in a separate Detroit Economic Club appearance according to
excerpts released by her office. "China, Taiwan, the EU, and so many others
are all moving forward, while the United States is playing catch up. We
cannot afford to fall behind."
Raimondo will add the United States needs "our partners and allies to
maintain a strong global supply chain and address this shortage. That’s why
Commerce is pursuing strategies like 'nearshoring' and 'friendshoring,' so
like-minded partners are integrated into our supply chains."
Last week, Samsung Electronics (005930.KS) said it had picked Taylor, Texas
as the location for a new $17 billion plant to make advanced chips.
The Thomson Reuters Trust Principles.
Evergrande shares fall after chairman cuts stake; Fantasia suspends trading
(Reuters) - Shares in China Evergrande Group (3333.HK) fell as much as 4.8%
on Monday morning, after its chairman trimmed his stake in the cash-strapped
property developer to raise about $344 million. read more
The group's electric vehicle unit, China Evergrande New Energy Vehicle Group
Ltd (0708.HK), also dropped more than 5% after it said the company was still
exploring ways to pump capital into the unit with different investors.
Evergrande has been scrambling to raise capital as it grapples with more
than $300 billion in liabilities and Chinese authorities have told its
chairman, Hui Ka Yan, to use some of his personal wealth to help pay
bondholders, sources have said.
Evergrande failed to pay coupons totalling $82.5 million due on Nov. 6 and
investors are on tenterhooks to see if it can meet its obligations before a
30-day grace period ends on Dec 6.
The developer disclosed late on Friday that Hui had sold 1.2 billion shares
in the company at an average price of HK$2.23 each, lowering his stake in
the Shenzhen-based real estate developer to 67.9% from 77%.
Once China's top-selling developer, Evergrand'e troubles have hit the
broader Chinese property sector with a string of debt defaults and credit
rating downgrades of its peers in the last couple of months.
Fantasia Holdings (1777.HK) suspended trading in company shares on Monday
pending release of information. On Thursday, the developer said a winding-up
petition was filed against a unit related to an outstanding loan.
The Thomson Reuters Trust Principles.
More work needed to create green jobs, report says
Efforts to create so-called green jobs need to intensify if the UK
government is to achieve its target of two million roles by 2030, according
to a report.
Jobs linked to the green economy accounted for 1.2% of all advertised roles
in the year to July 2021, consultancy PwC said.
That equates to just 124,600 new jobs.
Boosting green job creation is part of the government's "green industrial
revolution" plans.
In November 2020, the government announced £4bn would be spent on creating
up to 250,000 new green jobs as part of its plan to hit net zero emissions
by 2050.
The COP 26 summit held in Glasgow a year later has put the issue into sharp
focus again.
But there are concerns that the green jobs transition could pose some risks,
as it will impact on traditional jobs, especially in polluting industries.
In September, the Trade Union Congress (TUC) warned up to 660,000 jobs could
be at risk if the UK fails to reach its net-zero target as quickly as other
nations.
PwC's report said work was needed to ensure the move to a net-zero economy
does not add to regional inequalities.
Economic rebalance
It found that Wales, Northern Ireland and Yorkshire and the Humber lagged
behind other parts of the UK in terms of transitioning to a greener economy.
Scotland and London were the top performers, according to the research.
PwC ranked areas in terms of how they performed in job creation, the
benefits of green jobs, the loss of "sunset jobs", the carbon intensity of
employment, and green workplaces.
They hunted for online job ads that mentioned things like sustainability and
environment - there had to be a number of mentions.
Kevin Ellis, PwC chairman and senior partner, said: "Jobs are getting
greener and this is cause for optimism, but evidence is needed on the level
and distribution of these opportunities.
"Left unchecked, green employment will grow in the most fertile spots, but
not necessarily where they're needed most.
"By acting now, we have a massive opportunity to rebalance the economy and
ensure a fair transition."
A government spokesman told the BBC: "As this data shows, hundreds of
thousands of green jobs are being created across the country, and our
landmark Net Zero Strategy sets out how the UK will accelerate this growth,
unlocking £90bn in private investment.
"Our plans will see the majority of new green jobs to be created and
supported outside London and the south east, with our shift to a low carbon
economy providing an unprecedented opportunity to attract new, future-proof
businesses in our industrial heartlands."
What is a green job?
The simplest answer is a job that directly contributes to tackling climate
change, although many think it should also cover roles that indirectly
support that ambition.
Growing sectors where one might find more green jobs being advertised
include low-carbon farming, heating without emissions, and wind turbine
maintenance.
In its research, PwC said jobs that support the green economy indirectly
should also be considered green.
Such roles might include environmental advisors or experts in environmental
or sustainability research and education.-BBC
Nissan to spend $17.6 bln over 5 years in electrification push
(Reuters) - Nissan Motor Co (7201.T) announced it will spend 2 trillion yen
($17.59 billion) over the next five years to accelerate vehicle
electrification, aiming to catch up with rivals in one of the fastest growth
areas for the automobile industry.
This is the first time Japan's No.3 automaker, one of the world's first
mass-market electric vehicle (EV) makers with its Leaf model more than a
decade ago, is unveiling a comprehensive electrification plan.
Nissan will be spending twice as much as it did in the previous 10 years for
a share of the EV market as rivals, including Toyota Motor Corp (7203.T) and
newer entrants such as Tesla Inc (TSLA.O), move ahead with their
electric-car plans.
Nissan said on Monday it will introduce 23 electrified vehicles by 2030,
including 15 electric vehicles (EVs), and wants to reduce lithium-ion
battery costs by 65% within eight years. It also plans to introduce
potentially game-changing all solid-state batteries by March 2029.
Those commitments, Chief Executive Makoto Uchida said, would make EVs
affordable to more drivers.
"We will advance our effort to democratise electrification," he said in an
online presentation.
Some analysts were unimpressed with Nissan's plan, noting it was already
behind rivals in the electrification game.
Masayuki Otani, senior analyst at Securities Japan Ltd, also said auto
stocks were falling on Monday because of market concerns about a new
coronavirus variant and the impact it could
have on production plans.
"Nissan's long term vision comes at a time when the market is perhaps not
receptive to it. It can be said that it represents a huge increase in
investment, it feels cautious," he said.
Shares of Nissan fell as much as 5.1% on Monday, underperforming its major
rivals. They were down 3.8% in afternoon trading.
Nissan shares after strategy
Although still only a small portion of vehicles on the road, global electric
car registrations in 2020 grew 41% even as the overall car market contracted
by almost a sixth, according to the International Energy Agency (IEA).
At the U.N. climate summit in Glasgow this month, major car makers,
including General Motors (GM.N) and Ford Motor Co (F.N), signed a
declaration that committed them to phase out fossil fuel vehicles by 2040.
Nissan, however, has not committed to abandoning gasoline vehicles. It said
on Monday half of its vehicles mix will be electrified by 2030, including
EVs and its e-Power hybrids.
As it readies to compete for the growing demand for EVs, Nissan in July
pledged $1.4 billion with its Chinese partner Envision AESC to build a giant
battery plant in Britain that will power 100,000 vehicles a year including a
new crossover model. read more
Rivals, including Toyota, which also declined to sign the Glasgow pledge,
are also ramping up their battery production.
The world's biggest automaker by production volume plans to have 15 battery
electric vehicle (BEV) models globally by 2025 and will spend $13.5 billion
by 2030 to develop cheaper, more powerful EV batteries and their supply
system.
Toyota said it is aiming to introduce solid-state batteries by the
mid-2020s.
Those power packs are attractive to automakers because they are more energy
dense and less prone to catching fire than liquid lithium-ion power packs.
They are, however, prone to cracking and currently are more expensive to
produce.
Nissan said its goal is to bring the cost of solid state batteries down to
$75 per kilowatt-hour (kWh) in 2028 and further cut it to $65 per kWh in the
future to make them competitive with gasoline vehicles.
($1 = 113.7000 yen)
The Thomson Reuters Trust Principles.
Covid: BA suspends Hong Kong flights amid crew quarantine
British Airways has suspended flights to Hong Kong amid reports more of its
crew members have been forced to quarantine in a government centre.
BA confirmed it has temporarily stopped flights "while we review operational
requirements for this route".
The South China Morning Post reported that one BA worker had tested positive
for Covid, leading to most crew members being sent to the quarantine camp.
It follows a similar incident the week before.
In that case, a BA crew member tested positive for the virus on 20 November.
The employee and other crew, classed as "close contact", were sent to Hong
Kong's Penny's Bay quarantine centre.
A spokesman for Hong Kong's Department of Health told the South China
Morning Post that those crew members had since returned to the UK.
It comes amid concern over the new Covid variant, Omicron - cases of which
have been discovered in a number of places including the UK and Hong Kong.
Commenting on the most recent measures against its crew, BA said: "We're
supporting crew who are currently isolating in Hong Kong.
"We work within local regulations for every country we fly to, and always
put the safety and wellbeing of our teams and customers at the heart of
everything we do."
Hong Kong's Cathay Pacific airline has been forced to cancel some passenger
flights in December due to staff shortages. The airline operates a "closed
loop" system which means airline crew, working on three week shifts, must
stay in their hotel rooms between flights before going into a 14-day
quarantine when they return home.
Hong Kong is pursuing a zero-Covid cases policy in order to open the border
with mainland China.
BA said: "We apologise to our customers who have had their travel plans
disrupted and will be in touch to give them options."
The BA suspension of Hong Kong flights follows the temporary stoppage of air
travel to six southern African counties following the discovery of the
Omicron variant.
Both BA and Virgin Atlantic cancelled flights between midday on Friday and
04:00 on Sunday after the government temporarily banned travel from South
Africa, Namibia, Zimbabwe, Botswana, Lesotho and Eswatini.
Those countries were added to the UK's travel red list at 04:00 on Sunday
along with Angola, Namibia, Mozambique and Zambia.
People arriving from these countries will not be able to enter unless they
are UK or Irish nationals, or UK residents.
Travellers will then have to pay for and self-isolate in a pre-booked
government-approved hotel for 10 days.
The government has also announced that arrivals to the UK will need to take
a PCR test by the end of the second day after their arrival, and isolate
until they get a negative result. The changes are expected to come into
force on Tuesday.
Health Secretary Sajid Javid told the BBC's Andrew Marr Show that the
measure will come into force from 04:00 on Tuesday, 30 November
'A huge blow'
Omicron has been called a "variant of concern" by the World Health
Organization and it is not yet clear if the variant is resistant to existing
vaccines or how transmissible it is.
New Covid variant: Will new measures against Omicron work?
A spokesperson for ABTA, the travel industry trade body, said that it
"understands that this is a rapidly evolving situation and public health
must come first".
But it added: "The decision to require all arrivals to take a PCR test and
self-isolate until a negative result is returned is a huge blow for travel
businesses, many of whom were only just starting to get back on their feet
after 20 months of severe restrictions."
On Friday, shares in airlines such and IAG, BA's parent company, and
EasyJet, as well as holiday companies Carnival and TUI, tumbled at the
emergence of the new Covid strain. Stock markets across the world also fell
on concerns Omicron could hamper economic recovery.
Travel companies have spent Saturday evening and Sunday fielding calls from
worried customers around the world, trying to establish whether they need a
PCR test when they arrive in the UK next week.
Many in the industry are frustrated that the policy was announced without
giving the date for when it would come in, giving them little information to
pass on to their passengers.
There are concerns too for bookings, with one industry official saying 'this
just turns off the tap' with the public less confident to book trips abroad.
It's not only the travel industry who are concerned.
Hospitality is worried that the changes might affect the confidence of
consumers in the all important build up to Christmas too.
Holiday bookings often drop at this time of year, but January bookings for
the summer are crucial. Until the government review of the measures in three
weeks' time, the industry feels in limbo.
ABTA said the decision to require airline passengers to take a PCR test on
day two of arrival should be kept under careful review with measures lifted
quickly "if it becomes clear there is not a risk to the UK vaccination
programme".
It added: "The government must also now consider offering tailored support
for travel businesses, which have been among the hardest hit during the
pandemic."
Since the beginning of the Covid pandemic, airlines including Ryanair,
EasyJet and BA, have cut thousands of jobs. Rolls-Royce, which makes engines
for planes, announced last year that it would axe 9,000 people from its
workforce.-BBC
UK regulator set to block Meta's Giphy deal - FT
(Reuters) - The UK competition regulator is expected to block Meta
Platforms' (FB.O) acquisition of online GIF platform Giphy in the coming
days, the Financial Times reported on Monday.
The Competition and Markets Authority is set to reverse the deal in what
would be the first time the watchdog has reversed a Big Tech acquisition,
the report said, citing individuals close to the matter.
Meta Platforms and the regulator did not respond to requests for comment
from Reuters sent outside working hours.
The regulator had in October fined the U.S. social media giant Facebook, now
Meta, 50.5 million pound ($67.35 million) for breaching an order that was
imposed during an investigation into its purchase of the GIF platform,
Giphy. read more
Facebook bought Giphy, a website for making and sharing animated images, or
GIFs, in May last year to integrate it with its photo-sharing app,
Instagram. The deal was then pegged at $400 million by Axios.
($1 = 0.7499 pounds)
Macau casino shares fall after 'illegal gambling' arrests
Shares in Macau casino operators have slumped after police arrested 11
people over alleged money-laundering and illegal cross-border gambling.
It comes as authorities had earlier said they were questioning Alvin Chau, a
prominent gambling industry figure.
A Chinese state media outlet said Mr Chau was accused of heading a
cross-border gambling syndicate.
Casino gambling is illegal in mainland China but legal in Macau, the world's
biggest gambling hub.
It is not clear if Mr Chau was among those arrested, but separately, Hong
Kong newspaper the South China Morning Post quoted police as identifying a
Macau businessman with the surname Chau.
Mr Chau is the chairman of Suncity Group Holdings. He is also the founder of
Suncity - Macau's biggest "junket operator", which organises trips to Asian
casinos for wealthy gamblers.
Shares in Suncity Group were suspended from trading on the Hong Kong Stock
Exchange on Monday. The company did not immediately respond to a request for
comment from the BBC.
Some of the city's biggest operators were also affected, with MGM China down
10%, Wynn Macau losing 8% and Sands China more than 6% lower.
The Global Times named Mr Chau as the head of a cross-border gambling
criminal syndicate, with more than 12,000 gaming agents and 80,000 members
across China.
Mr Chau is also a controlling shareholder of Hong Kong-listed Sun
Entertainment Group, a film production and cremation services firm, which
said in a stock exchange filing on Sunday that its board had noted news
coverage about the investigations in Wenzhou and Macau.
"The Board is of the view that the incident does not have any material
impact on the financial position, business nor operation of the Group," the
statement said.
Sun Entertainment Group's shares were down by almost 30% on Monday
afternoon.
Crackdown fears put Macau casinos on losing streak
Macau's casinos have come under increasing scrutiny in recent months as
regulators aim to more closely supervise their operations.
In September, the city's secretary for economy and finance, Lei Wai Nong,
gave notice of a 45-day consultation period on the gambling operators,
pointing to shortcomings in supervision of the industry.
During a news briefing, Mr Lei detailed nine areas for the consultation,
including better regulation of the industry, as well as having government
officials to supervise day-to-day casino operations.
Nigeria: Buhari's Loans, Economic Woes Leave the Nation Poor, Beggarly - -
Ayu
The National Chairman of People's Democratic Party, PDP, Dr.Iyochia Ayu, has
told Nigerians that the number of foreign loans Nigeria attracted under the
Buhari administration and the economic predicaments in the country, have
made Nigeria a beggar in the comity of nations and turned the country into
the poverty capital of the world.
Dr. Ayu, who stated this in a chat with BBC Hausa,monitored by Vanguard in
Kaduna weekend, said there was no doubt that the PDP made mistakes in the
past but noted that the party had owned up to its mistakes unlike some
governors who were full of deceit.
According to him, "it is generally known that since the assumption of power
of the incumbent government, it couldn't fulfill promises made to Nigerians.
"We don't lie, we don't say we've done what others have done or are doing.
Now,we are ever ready to make amends."
The PDP leader said the party had organised a workshop for the newly elected
party officials so as to keep them abreast of ways to confront the state of
insecurity in the country.
He said it was disheartening that people could no longer travel safely from
Kaduna to Abuja, adding that they were now ready to explore ways to rectify
the problem.
" The situation in our country is so bad that anyone on a journey from Abuja
to Kaduna ,whether by road or by rail,would not have peaceful mind.
"It is a must that we right the wrongs in our party,so as to get people's
support. Every side must be given the chance to comment so that together, we
work in unison to achieve what the people desired.
" We shall discuss with people to hear their views ,because we would not
trust the Nigeria of today in which people are diverting official things for
their interest, rather than for the people," he said.
He recalled the administration of Chief Obasanjo and that of late Yar'Adua,
saying they both encountered the problem of insecurity but were able to
surmount it.
Ayu boasted that when PDP assumes power in 2023, it would .make amends and
bring changes, having known the ways of resolving issues of insecurity .
" Things are stagnant, they left everything without any progress. This has
clearly shown the failure of APC and their lack of skill in governance.
They failed to fulfill promises they made to Nigerians," he said.
Ayu also criticised the number of foreign loans Nigeria attracted under
Buhari, alleging that doing so had made Nigeria a beggar in the comity of
nations.
He said economic problems had already turned Nigeria into the poverty
capital of the world.
Vanguard News Nigeria
Nigeria: Fuel Subsidy Removal - Reallocate Savings to Critical
Infrastructure, Business Leaders Tell Govt
The widespread opposition to the planned N5,000 transport grant in lieu of
fuel subsidy removal intensified over the weekend with business leaders
advocating investment in critical infrastructure like transport, health and
education as a better way of reducing the expected inflationary impact of
the policy on the masses.
Last week, the Federal Government announced plans to remove fuel subsidy and
palliative of N5,000 month transport grant to 40 million poor Nigerians.
The proposed palliative, translates to N2.4 trillion annually, and 231 per
cent higher than the N725 billion average annual subsidy payment by the FG
between 2016 and 2019.
Responding to Vanguard enquiries, Minister of Finance, Zainab Ahmed, said
that the proposed palliative will be implemented over a period of between
not exceeding 12 months.
However, the proposed palliative was greeted with widespread opposition from
the Senate, Nigeria Labour Congress, NLC, Trade Union Congress and other
critical segments of the society.
Also opposing the proposed N5,000 transport grant, business leaders in
separate interviews with Vanguard said that the most effective way of
reducing the impact of higher prices that will result from the removal of
subsidy, is to reallocate the savings to investment in critical
infrastructure like transport, health and education that have direct impact
on common Nigerians.
The business leaders include the President, Lagos Chamber of Commerce,
Industry (LCCI), Mrs. Toki Mabogunje, Managing Director, 11PLC, Adetunji
Oyebanji, Bismarck Rewane led Financial Derivatives Company (FDC) Limited,
Vice Executive Chairman, High Cap Securities Limited, Mr David Adonri, the
National President, Oil and Gas Service Providers Association, OGSPAN, Mazi
Colman Obasi and Dr Muda Yusuf, Chief Executive Officer,Centre for the
Promotion of Private Enterprise (CPPE), and former Director General, LCCI.
Advocating investment in transport infrastructure as against the N5,000
monthly transport grant to poor Nigerians, LCCI President, Mrs. Toki
Mabogunje, said: "We are delighted to hear about the proposed removal of
fuel subsidy after a long-drawn delay.
"Beyond the fundamentals that have formed the basis of arguments by major
stakeholders, we recommend a corresponding investment in transport
infrastructure to ease movement, create more transport choices, and thereby
reduce the cost of transportation and logistics."
Muda Yusuf said that while the N5,000 palliative is not a bad idea, enduring
reforms that ease transport cost is preferable. He however cautioned against
hasty implementation to avoid the risk of a social and political backlash
could be quite high.
He said: "I believe that there is a need to creatively manage the transition
from the current pricing regime to a fully deregulated arrangement.
It is a tricky issue which could pose a serious challenge to the government
if not tactically managed.
"The reality is that the sentiments among the citizenry are not favourable
to the deregulation of petroleum product pricing or petroleum subsidy
removal. Even some elites are curiously not persuaded on the justification
for the subsidy removal.
"If the policy transition is not properly managed, the risk of a social and
political backlash could be quite high.
"No doubt there is a sound economic and business case in favour of fuel
subsidy removal. But the social and political contexts are equally critical.
"Certainly, the subsidy is not sustainable, which is why there is a need to
accelerate engagement with the relevant stakeholders to come up with a
policy transition strategy that is sustainable, realistic and pragmatic.
"The conversation should not only be economic, but also social and
political."
On the proposal on cash transfer to the vulnerable segments of the society,
Yusuf said it is not a bad idea.
"It is essentially a transitional policy to mitigate immediate shocks. It
also has a symbolic significance. But we need to be sure of the integrity of
the database that contains the 40 million people.
"This should be validated by key stakeholders including the labour unions
and the civil society groups.
It is important as well to validate the inclusiveness of the database.
"Meanwhile, more enduring reforms would have to take place to ease
transportation costs, build domestic petroleum refining capacity, and
attract more investors into the downstream petroleum sector," he stated
On their part, analysts at Bismarck Rewane led FDC, averred that the removal
of fuel subsidy will help to reduce deficit spending of the FG, it would
however lead to higher logistics costs and further stoke inflationary
pressures.
They, however, averred that the N5,000 palliative bare scratches the surface
in reducing the inflationary impact of the policy on consumers, and instead
the FG should channel the freed up funds to critical infrastructure projects
sectors of the economy that have direct impact on the common Nigerian.
They said: "The federal government's decision to phase down fuel subsidies
by 2022 elicits both relief and worry. The GMD of the state oil company,
NNPC has stated that the removal of subsidies will push the pump price of
petrol to between N320/ltr and N340/ltr. This would lead to higher logistics
costs and further stoke inflationary pressures.
"We expect subsidy removal to increase government revenue and narrow the
fiscal deficit. It is however important that the freed up funds are
channeled to critical infrastructure projects sectors of the economy that
have direct impact on the common Nigerian (transport, education and health
system)."
Similarly, Immediate past chairman of MOMAN, who is also the Managing
Director, 11PLC, Adetunji Oyebanji, said: "I have been advocating the
removal of fuel subsidy because it is not benefiting the ordinary man rather
the elite who drive cars. So I was pleased with the planned removal.
"Also, the idea of disbursing N5, 000 to Nigerians is not sustainable and
cannot be adequately monitored. What is the difference between what was and
currently suggested.
"It would rather make sense to put such funds into supporting primary school
students with books and feeding as well as fees. That would encourage and
grow the education sector and its citizens in the long run. Also, the
federal government can inject such fund to the transport buses so that
Nigerians can pay low fare on the BRT buses."
On his part, Vice Executive Chairman, High Cap Securities Limited, Mr David
Adonri, stressed that the proposed palliative does not make sense in view of
the increases in prices of goods and services resulting from the removal of
fuel subsidy, adding that the FG should first fully deregulate the petroleum
industry.
He said: " Doubling the price of petrol will reverse the decline in
inflation rate. It can cause riots. Hope it's not preparatory to
commencement of Dangote Refinery. "
Subsidy removal's economic necessity --Keyamo
Meanwhile, the Minister for State for Labour and Employment, Festus Keyamo,
SAN, insisted yesterday that the removal of subsidy by President Muhammadu
Buhari's administration would rather affect the rich that are being paid
more that the presumed poor masses.
Speaking on Channels Television's 'Today's Politics' programme yesterday,
Keyamo said the issue of subsidy removal was an economic necessity.
He said: "What we have now is not subsidy but under recovery. The issue of
removal of subsidy is an economic necessity but a huge political problem.
The government finds itself between the devil and the deep blue sea. But it
is an economic necessity.
"Anytime it comes up, persons that have grievance against the government
would then converge to make the country ungovernable. Government always
finds it difficult to navigate itself on the issue of subsidy but then, the
reality facing us in 2006 under Obasanjo and 2018, the statistics tells us
that we've spent N10 trillion in this country subsidizing and in 2019 and
2020, we spent another N3 trillion which is about $7billion again on
subsidy."
" As we speak, we are doing N200 to N250 billion within a month. Put this
side by side with what we need to fix infrastructure in this country, that
is the money we need to fix bad roads, poor hospitals, power supply, the
rails, these are the money we need.
Asked on the N5000 transport palliative, he said: " is within months or one
year that is about N2.4trillion. It is just to give a transitional period
for Nigerians to absolve the shock. But everybody agrees that subsidy must
go.
"People think that it is the poor masses that would get the end of the
stick. No! it is actually the rich and powerful that would get the end of
the stick because they are the one that are being paid not the masses. The
masses need good roads , hospitals so that their children would not die,
they need power supply. The rich buy diesel the poor cannot"- Vanguard.
Nigeria: Telcos Seek Regulator's Intervention to Address Industry Issues
Telecommunications operators (Telcos), which include Value Added Service
(VAS) providers, have stressed the need for the Nigerian Communications
Commission (NCC), the telecoms industry regulator, to address all peculiar
challenges rocking the boat of the telecoms industry, in order to protect
the industry and its players.
The operators who spoke at the 'Talk To The Regulator Forum,' organised by
NCC in Lagos recently, said the telecoms environment was becoming tough to
do business, and that such challenges emanate from the communities, the
bigger operators, and most times from the regulator itself.
Value Added Service (VAS) providers who were present at the forum, frowned
at the revenue sharing formula between VAS providers and Mobile Network
Operators (MNOs), and argued that the situation has forced many VAS
providers to shut down business, because the MNOs are taking the larger
revenue share, when in the real sense of it, the VAS providers are the ones
providing the contents.
Responding to industry complaints, the Executive Commissioner, Stakeholders
Management at the NCC, Adeleke Adewolu, said the issue between VAS providers
and MNOs had lingered for too long and promised that NCC would seek further
meeting to address the issue.
"We will meet again with VAS aggregators to discuss their specific needs in
order to address them. Change is constant and we can see that in the
disruptive nature of VAS operators that has further deepened digital
transformation in Nigeria.
"National policy on local content is something that the regulator must
implement, and NCC has set up an office for development and implementation
of the policy. NCC will collaborate with VAS operators to develop local
content in the telecoms sector," Adewolu said
In his opening remarks, Adewolu said NCC would continue to consider
consultation as a lifeblood of regulation, and that the Nigerian
Communications Act (NCA, 2003) entrusted the NCC with powers and
responsibilities for the regulation of both the technical and market-related
aspects of telecoms infrastructure and services in Nigeria.
"It is important to note that this particular 'Talk to the Regulator'
session is being held at a crucial point in the evolution of the telecoms
sector," Adewolu further said.
The Executive Vice Chairman of NCC, Prof. Umar Garba Danbatta who was
represented at the forum by Adewolu, said NCC clearly understood the
challenges of the industry, hence the need for the interaction, which he
said, remained critical to industry growth and development. Danbatta however
said the operators needed to step up their game and comply with industry
regulations and standards in order to succeed in telecoms business.-This
Day.
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>
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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
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for guideline purposes only and sourced from third parties.
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