Major International Business Headlines Brief::: 07 October 2021

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Major International Business Headlines Brief::: 07 October 2021

 


 

 


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

 


 

 


ü  Nestle admits supply chain issues ahead of Christmas

ü  Intel not considering UK chip factory after Brexit

ü  Changing China: How Xi's 'common prosperity' may impact the world

ü  Overseas workers only way to solve shortages, says Next boss

ü  Opioid crisis: US pharmacies face moment of truth as trial begins

ü  Fuel retailers 'frustrated' despite improvement

ü  IMF chief Georgieva says she was misled by law firm on World Bank probe

ü  Subsiding COVID-19 infections boost U.S. private payrolls in September

ü  Evergrande backer Chinese Estates' stock soars on take-private offer

ü  GM aims to double revenues by 2030 as it drives to pass Tesla

ü  Asian shares rise on stronger global risk appetite as oil prices ease

ü  Myanmar central bank sees currency stabilising on new measures

ü  EXCLUSIVE Northvolt plots EV battery grab with $750 mln Swedish lab plan

ü  Dow aims to add $3 bln to core earnings by 2030 with new net-zero unit

ü  New Japan leader likely to stick to economic policy -Fitch

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Nestle admits supply chain issues ahead of Christmas

The maker of Quality Street and Lion bars has said it is experiencing some
supply chain problems ahead of the Christmas period.

 

But Mark Schneider, the chief executive of Nestle, told the BBC that it was
working hard to make sure products made it shelves this winter.

 

A number of sectors have had problems with their supply chains due to a
chronic HGV driver shortage.

 

Factors including global bottlenecks with shipping have also played a part.

 

"Like other businesses, we are seeing some labour shortages and some
transportation issues but it's our UK team's top priority to work
constructively with retailers to supply them," he said.

 

When asked whether he could guarantee Quality Street would be in the shops
this Christmas he replied: "We are working hard."

 

Climate summit

Nestle, which also makes Aero and KitKat, is the world's largest producer of
dairy products - and works with hundreds of thousands of farmers around the
world with millions of cows.

 

Ahead of a major climate summit in Glasgow next month, chief executive Mark
Schneider was in the UK to launch a range of non-dairy, plant-based
alternatives to its milk and chocolate in an attempt to further reduce the
company's greenhouse gas emissions.

 

Agriculture accounts for 20% of the world's greenhouse emissions and methane
from belching cows is a major contributor.

 

Along with new non-dairy products, Nestle is also working with new types of
feed for cattle that produce less methane per litre of milk produced.

 

Commercial reality

Mr Schneider also admitted it was responding to the commercial reality of a
market that has seen consumers - particularly those who are younger and more
affluent - move away from dairy products to oat and soya-based alternatives.

 

"We think less meat and dairy is good for the planet, but it's also good for
diet and health, and it is also a big commercial opportunity," Mr Schneider
said.

 

He said that these alternative products would cost more than their dairy
equivalents at first but that the cost would come down over time.

 

"The first unit is always going to be a little more expensive, this is a
hump you have to get over, and then at some point economies of scale kick in
making them more affordable as we have seen in electric cars.

 

"Some consumers are willing to pay a premium now for products that pave the
way for that," he said.-BBC

 

 

 

Intel not considering UK chip factory after Brexit

The boss of Intel says the US chipmaker is no longer considering building a
factory in the UK because of Brexit.

 

Pat Gelsinger told the BBC that before the UK left the EU, the country
"would have been a site that we would have considered".

 

But he added: "Post-Brexit... we're looking at EU countries and getting
support from the EU".

 

Intel wants to boost its output amid a global chip shortage that has hit the
supply of cars and other goods.

 

The firm - which is one of the world's largest makers of semiconductors -
says the crisis has shown that the US and Europe are too reliant on Asia for
its chip-making needs.

 

Intel is investing up to $95bn (£70bn) on opening and upgrading
semiconductor plants in Europe over the next 10 years, as well as boosting
its US output.

 

 

But while Mr Gelsinger said the firm "absolutely would have been seeking
sites for consideration" in the UK, he said Brexit had changed this.

 

"I have no idea whether we would have had a superior site from the UK," he
said. "But we now have about 70 proposals for sites across Europe from maybe
10 different countries.

 

"We're hopeful that we'll get to agreement on a site, as well as support
from the EU... before the end of this year."

 

Chip shortage could last into 2023, says car boss

Why is there a chip shortage?

Microchips are vital components in millions of products from cars to washing
machines, but they have been in short supply this year due to surging demand
and supply chain issues.

 

It has led to shortages of popular goods like cars and computers and driven
up prices - issues Mr Gelsinger said were set to continue into Christmas.

 

"There is some possibility that there may be a few IOUs under the Christmas
trees around the world this year," he said.

 

"Just everything is short right now. And even as I and my peers in the
industry are working like crazy to catch up, it's going to be a while."

 

He said things would "incrementally" improve next year but were unlikely to
stabilise until 2023.

 

'Nobody should be too dependent'

Intel's expansion comes as the overall market for semi-conductors is set
more than double in the next seven years to around $800bn.

 

The firm also hopes to secure subsidies from US and European politicians,
who feel their reliance on Asia for chips could threaten national security.

 

Today the US only produces around 12% of the world's semiconductors, while
Korea's Samsung and Taiwan Semiconductor Manufacturing Company (TSMC)
account for 70% of global supply.

 

"It is clearly part of the motivation of a globally balanced supply chain
that nobody should be too dependent on somebody else," Mr Gelsinger told the
BBC.

 

Intel will continue outsourcing some of its chip-making but eventually hopes
to make most of its most of its products in-house. Competing won't be easy,
though.

 

Chip-making is still far cheaper in Asia and Intel's rivals continue to
expand. TSMC, the world's largest contract maker of semi-conductors, will
spend $100bn on increasing capacity over the next three years while Samsung
invests $205bn.

 

Mr Gelsinger said he is confident Intel can still regain its leading edge.
"This is an industry that we created in the US, Intel's the company that
puts silicon into Silicon Valley," he said.

 

"But we realise these are good companies, they're well capitalised, they're
investing, they're innovating together. So we have to re-earn that right of
unquestioned leadership."-BBC

 

 

 

Changing China: How Xi's 'common prosperity' may impact the world

China says its policies aimed at narrowing the widening wealth gap are
precisely what it needs in this moment of its economic trajectory - but
critics say it comes with even greater control of how business and society
will be governed.

 

And while this "common prosperity" drive is squarely focused on people
inside the country it has the potential to have huge repercussions for the
rest of the world.

 

One of the most visible consequences of common prosperity has been the
refocusing of corporate China's priorities to the domestic market.

 

Technology giant Alibaba, which in recent years has seen its global profile
rise, has now committed $15.5bn (£11.4bn) to help promote common prosperity
initiatives in China, and set up a dedicated task force, spearheaded by its
boss Daniel Zhang.

 

The firm says it is a beneficiary of the country's economic progress, and
that "if society is doing well and the economy is doing well, then Alibaba
will do well".

 

Rival tech giant Tencent is pitching too. It has pledged $7.75bn to the
cause.

 

China Inc. is keen to show it is playing ball with the Party's mandate - but
when the push towards more companies publicly backing Xi Jinping's new
vision first started, it did come as a "bit of a shock", one major Chinese
company told me privately.

 

"But then we got quite used to the idea. It's not about robbing the rich.
It's about restructuring society, and building up the middle class. And we
are a consumption business at the end of the day - so it's good for us."

 

Luxury sector may lose out

If common prosperity means an increased focus on the emerging Chinese middle
class - then that could mean it is a boon for global businesses catering to
these customers.

 

"We can see that the focus on young people getting jobs is good," Joerg
Wuttke, president of the EU Chamber of Commerce in China, told me.

 

"If they feel they are part of social mobility in this country, which has
been eroding, then it is good for us. Because when the middle class grows,
then there is more opportunity."

 

However, businesses that are tied to the luxury sector may not do as well,
Mr Wuttke warns.

 

"Chinese spending accounts for about 50% of luxury consumption globally -
and if China's rich decide to buy less Swiss watches, Italian ties and
European luxury cars then this industry will take a hit."

 

But while Mr Wuttke acknowledges China's economy does need critical reforms
to increase the amount an average Chinese person earns, he says common
prosperity may not be the most efficient way to get there.

 

 

Steven Lynch of the British Chamber of Commerce in China also says common
prosperity is not a guarantee that the middle class will grow in the same
way it has in the last forty years.

 

He likes to tell a story about how quickly the Chinese economy has expanded
over the last few decades.

 

"Thirty years ago a Chinese family could have a bowl of dumplings once a
month," he told me on the phone from Beijing. "Twenty years ago, perhaps
they could have a bowl once a week. Ten years ago - that changed to
everyday. Now: they can buy a car."

 

But so far Mr Lynch says, common prosperity hasn't resulted in anything
concrete, besides the sorts of corporate social responsibility efforts that
Alibaba and Tencent have adopted.

 

"There are also a lot of instant regulations sprung on a lot of sectors," he
said of the recent crackdown on technology companies. "That causes
uncertainty - and raises questions. If they are turning more inward - then
do they really need the rest of the world?"

 

The 'new socialism'

At its heart common prosperity is about making Chinese society more
equitable, at least according to the Communist Party. And this has the
potential to transform what socialism means in the global context.

 

"The Party is now concerned about average workers - like taxi drivers,
migrant workers and delivery boys," says Wang Huiyao of the Centre for China
and Globalisation from Beijing.

 

"China wants to avoid the polarised society that some Western countries
have, which we have seen leads to deglobalisation and nationalisation."

 

But long time China-observers say that if transforming socialism - with
Chinese characteristics - into an alternative model for the rest of us is
really what the Party wants, then common prosperity is not the way.

 

"It is part of the leftward lurch and part of the lurch towards ever more
control that has been indicative of Xi Jinping's tenure," says George
Magnus, associate at the China Centre at Oxford University.

 

Mr Magnus adds that common prosperity does not mean replicating a European
style social welfare model.

 

"The implicit pressure is to comply with the Party's goals," he says. "There
will be tax on high and 'unreasonable' incomes, and pressure on private
firms to donate to Party economic objectives," he says, "but no big move
towards progressive taxation".

 

A top down Utopian China

It is clear that common prosperity is a major part of how the Chinese state
and society will be governed under Xi Jinping.

 

With this comes the promise of a more equitable society - a bigger and
wealthier middle class, and companies that give back rather than just take.

 

A sort of top down Utopian China, that the Party is hoping will prove to be
a viable alternative model for the world to what the West has on offer.

 

But it does come with a catch: even more control and power in the hands of
the Party.

 

China has always been a difficult environment for foreign businesses to
operate in, common prosperity means that the world's second largest economy
just got even more difficult to navigate.

 

This is the third in a three-part series looking at China's changing role in
the world.

 

Parts one and two explored the background to Xi Jinping's transformation of
the Chinese economy and how Beijing is rewriting the rules of doing
business.-BBC

 

 

Overseas workers only way to solve shortages, says Next boss

Next chief executive Lord Wolfson has said labour shortages could be solved
by companies hiring overseas workers and paying a "visa tax".

 

Staff were not available in the places needed and seasonal workers were
difficult to recruit, he told the BBC's Today programme.

 

Next has warned warehouse and logistics staffing is under pressure.

 

The comments are the latest in exchanges between the pro-Brexit Tory peer
and Prime Minister Boris Johnson.

 

Mr Johnson said Lord Wolfson "doesn't want any kind of control or restraint
on the number of people that he can access from abroad to run his business".

 

But in response, Lord Wolfson said this was "absolutely not" the case.

 

Lord Wolfson suggested businesses could get visas for skills they
"desperately need" and recommended that they should have to pay UK workers
the same amount as overseas workers. To make this competitive, he argued
businesses should have to pay a "visa tax on top - lets say 7% of wages".

 

"We need to design a system that delivers the skills but at the same time
makes sure UK workers are not deprived of opportunities that they might
want," he said.

 

He added that this solution would "ensure people are not being brought into
the UK to undercut UK workers because they will always be more expensive and
it provides the skills Britain desperately needs to keep its industry
moving".

 

He suggested that only UK businesses should be able to apply for these
visas, rather than workers, and that it should not cost the employers more
than recruiting in the UK.

 

The retail chain currently pays store sales consultants and stock assistants
between £6.55 to £9.21 an hour and warehouse operatives between £9.30 and
£11.26 an hour.

 

At Next, Lord Wolfson said that warehouse wages had gone up by around 60% in
the last 10 years and 70% for Christmas wages, and added that "wages have
already gone up significantly".

 

But, he said the firm was still finding that there were not enough workers
in particular areas who wanted to move for short periods of time.

 

Price rises

Last week, Next warned of price rises and staff shortages before Christmas
unless immigration rules were eased.

 

It also said higher shipping costs, particularly for larger furniture items,
were pushing up its prices.

 

The company's warning over potential staffing issues during the festive
period was made in its half-year results, which showed profit before tax was
up by 5.9% compared to 2019 levels.

 

The firm said rising shipping costs had driven up prices by about 2%, with
its larger home products "bearing the brunt of the increase".

 

It added that in the first half of next year, it expected prices to increase
by an average 2.5%, with homeware prices up 6%.-BBC

 

 

Opioid crisis: US pharmacies face moment of truth as trial begins

Some of America's biggest pharmacy chains have gone on trial this week for
the first time, accused of fuelling the country's opioids epidemic.

 

Walgreens Boots Alliance, CVS, Walmart and Giant Eagle deny failing to stop
excessive amounts of addictive prescription painkillers being sold in two
Ohio counties.

 

If found liable, they could face a wave of litigation and billions of
dollars in compensation - not to mention serious reputational damage.

 

More than 3,300 similar cases have been brought, largely by US state and
local governments.

 

They seek to hold the companies responsible for an opioid epidemic that led
to nearly 500,000 overdose deaths from 1999 to 2019.

 

What are the allegations?

Over the last few decades, millions of Americans have become addicts through
the over-prescription and abuse of legal opiate-based painkillers such as
OxyContin.

 

It has put immense strain on public health and policing resources in cities
and towns across the US.

 

Big pharmaceutical companies, doctors and pharmacy chains were accused of
turning a blind eye to the problem, leading to criminal charges and billions
of dollars in civil litigation.

 

Yet pharmacy operators have not faced action until now.

 

In this week's trial, the Ohio counties of Lake and Trumbull allege that
Walgreens, CVS, Walmart and Giant Eagle refused to give their pharmacists
the necessary "tools and opportunities" to stop the "diversion and improper
sale" of opiates. They are also alleged to have ignored employee warnings
about inadequate safeguards.

 

As a result, large amounts of addictive painkillers ended up on the black
market, they say.

 

"They [the pharmacy chains] just dispensed like a vending machine," Mark
Lanier, a lawyer for the countries, told the jury in Cleveland in his
opening statement on Monday.

 

He said the four firms were "the last line of defence" against people
obtaining pills to illicitly sell on the streets. But he said they had
failed to spot "red flags" of misuse and prioritised the processing of
prescriptions quickly while patients shopped at their stores.

 

"From the very beginning, they were supposed to train their pharmacists, and
they didn't," Mr Lanier told the jury. "From the very beginning, they should
have given the pharmacists the tools they'd need and they didn't."

 

What do the pharmacies say?

The pharmacy companies deny wrongdoing, saying black market dealers were
more likely to obtain opioids illegally from other sources, including so
called pill mills (clinics that overprescribe painkillers for profit),
corrupt doctors and drug traffickers.

 

They also say regulators failed to control the drugs; the illicit sale of
drugs online also played a part.

 

"Pharmacists don't create demands," said Kaspar Stoffelmayr, a lawyer for
Walgreens. "They don't tell doctors what prescriptions to write."

 

Most instances of opioids being diverted for illicit uses did not involve
pharmacies, Mr Stoffelmayr added. He cited a study showing that most
prescribed pain pills go unused and many "end up in wrong hands".

 

In a statement issued before the trial, Walgreens said it took "great pride
in the judgment of our pharmacy professionals". Giant Eagle said regulators
who inspected its pharmacies in the two Ohio counties found it complied with
the law.

 

The BBC has contacted CVS and Walmart for comment.

 

What could happen next?

While the trial is technically only being brought by two counties, it will
set a precedent for thousands of other pending lawsuits from local states
and governments.

 

If found liable, the companies could end up having to pay out billions of
dollars to help abate the opioids crisis. They could also face weeks of
embarrassing testimony about their business practices.

 

Who else has faced action over the opioids crisis?

In September, OxyContin maker Purdue Pharma agreed to settle thousands of
lawsuits against it in a $10bn bankruptcy deal. The firm's owners - the
wealthy Sackler family - also gave up control of the business, which will
now focus on tackling the opioid crisis.

 

In exchange, they were shielded from future litigation, drawing fierce
opposition from some US states.

 

In July, the three largest US distributors that supply pharmacies -
McKesson, Cardinal Health and AmerisourceBergen - and the drugmaker Johnson
& Johnson in July proposed paying up to $26bn to settle cases against them.

 

The agreement would resolve nearly 4,000 claims in federal and state courts
against the four companies, if approved by a significant number of states
and governments.

 

Opioids trials against other companies involved in the opioids industry are
underway or awaiting rulings in West Virginia, California and New York.-BBC

 

 

 

Fuel retailers 'frustrated' despite improvement

Fuel stocks in London and south-eastern England continued to improve on
Wednesday, although drivers remain frustrated by "a crisis" now in its 14th
day, a trade body said.

 

The Petrol Retailers Association said 13% of forecourts in the capital and
South East were dry, with 16% having either petrol or diesel and 71% both.

 

For the rest of the country, 5% are dry, 4% have one grade and 91% both.

 

Despite military drivers now helping, uncertainty persists, the PRA said.

 

The PRA represents thousands of independent retailers, many of whom are
still in the dark about future deliveries, said the body's executive
director, Gordon Balmer.

 

He said: "Independent forecourts report a complete lack of visibility as to
when their next delivery might arrive, and some have been dry for four days
and still waiting for a delivery.

 

"We have yet to see any explanation from the government of the benefits
arising from the suspension of competition law between the major oil
companies in the delivery of downstream fuel. We need to restore a
competitive market with incentives for those who deliver on the job."

 

Fuel stocks in South and London behind rest of UK

On Monday, members of the armed forces arrived at the Buncefield oil depot
in Hemel Hempstead to begin work helping to deliver fuel.

 

Of about 200 military personnel involved, it is reported about 100 are
drivers.

 

The majority of the first tranche of military personnel are being deployed
to terminals that service London and the South East, targeting the areas
most in need of support.

 

By the end of this week, it is expected that 150 crews will be delivering
fuel across the UK.

 

Foreign tanker drivers have also applied for temporary visas to fill a
shortage of HGV drivers, although it is unclear how many - possibly as low
as 27, according to reports.

 

The government has acknowledged there is a shortage of drivers in the UK,
but said the problem is also worldwide and that the long-term solution is
for the haulage industry to invest in training rather than rely on workers
from overseas.-BBC

 

 

 

IMF chief Georgieva says she was misled by law firm on World Bank probe

(Reuters) - International Monetary Fund chief Kristalina Georgieva on
Wednesday said the law firm WilmerHale mischaracterized her actions while
serving as CEO of the World Bank, and assured her that her participation in
its investigation was confidential.

 

In a detailed statement to the IMF executive board, a copy of which was seen
by Reuters, Georgieva rejected WilmerHale's conclusion that she and other
senior World Bank officials pressured staff to alter data to benefit China
and said she had been told she was not a subject of the investigation.

 

She denied that she pressured World Bank staff to take any actions to change
China's ranking in the Doing Business 2018 report, and rejected any link
between the ranking and a proposed World Bank capital increase.

 

The Thomson Reuters Trust Principles.

 

 

 

Subsiding COVID-19 infections boost U.S. private payrolls in September

(Reuters) - U.S. private payrolls increased more than expected in September
as COVID-19 infections started subsiding, boosting hiring at restaurants and
other high-contact businesses.

 

The ADP National Employment Report released on Wednesday supported
expectations that job growth picked up last month, though it has a poor
record predicting the private payrolls count in the Labor Department's more
comprehensive and closely watched employment report.

 

September's employment report due on Friday will garner more attention after
the Federal Reserve signaled last month that it would likely begin reducing
its monthly bond purchases as soon as November. Fed Chair Jerome Powell
believes the economy is one "decent" monthly employment report short of
meeting the U.S. central bank's threshold for tapering its bond buying
program.

 

"It looks like the gain in employment will qualify as 'decent'," said Paul
Ashworth, chief economist at Capital Economics in Toronto. "Nevertheless, it
is worth remembering that the first estimate from the ADP is not a
particularly good predictor of official payrolls."

 

Private payrolls increased by 568,000 jobs last month, the ADP National
Employment Report showed. Data for August was revised lower to show 340,000
jobs added instead of the initially reported 374,000. Economists polled by
Reuters had forecast private payrolls would increase by 428,000 jobs.

 

Employment gains averaged 410,000 jobs in the third quarter, a slowdown
compared to the second-quarter average of 748,000. Last month, the leisure
and hospitality industry added 226,000 jobs after creating 155,000 positions
in August.

 

Manufacturing payrolls increased by 49,000 jobs, while hiring at
construction sites also rose by 49,000. Job gains in other sectors were
modest. Large firms accounted for the bulk of job creation, followed by
medium-sized companies. Small business hiring climbed by 63,000 jobs after
rising 61,000 in August.

 

The ADP report is jointly developed with Moody's Analytics. It has a poor
record predicting the private payrolls count in the department's Bureau of
Labor Statistics (BLS) employment report because of methodology differences.

 

Stocks on Wall Street fell as the ADP report fanned fears that the Fed could
tighten monetary policy sooner than expected. The dollar rose against a
basket of currencies. U.S. Treasury prices were higher.

 

Expectations that the Fed will soon start to withdrew some of the monetary
support to the economy have boosted mortgage rates, hurting refinancing
activity and demand for home purchase loans. A report from the Mortgage
Bankers Association on Wednesday showed mortgage applications dropped 6.9%
last week from the prior week.

 

Refinance applications tumbled 9.6% from the previous week and were down 16%
from a year ago. Applications for loans to buy a home dropped 1.7% from a
week ago. The 30-year mortgage fixed rate rose four basis points to 3.14%
last week, the highest since July.

 

The pick-up in private payrolls suggests the economic expansion remains on
track even as gross domestic product growth appears to have slowed sharply
in the third quarter because of the resurgence in COVID-19 infections in
summer and relentless shortages that have undercut motor vehicle sales.

 

The Atlanta Fed is predicting that GDP growth braked to a 1.3% annualized
rate in the July-September quarter. The economy grew at a 6.7% pace in the
second quarter.

 

"Stronger job growth in September could indicate that the drag on hiring
from the recent increase in coronavirus cases is fading," said Gus Faucher,
chief economist at PNC Financial in Pittsburgh, Pennsylvania.

 

According to a Reuters survey of economists, nonfarm payrolls likely
increased by 473,000 jobs in September. The economy created 235,000 jobs in
August, the fewest in seven months. Estimates range from as high as 700,000
jobs to as low as 250,000. The unemployment rate is forecast dipping to 5.1%
from 5.2% in August.

 

But labor market indicators were mixed in September. A survey from the
Conference Board last week showed consumers' views of current labor market
conditions softened.

 

The number of people on state unemployment rolls fell in mid-September
relative to mid-August. The Institute for Supply Management's measure of
manufacturing employment rebounded last month after contracting in August.
But the ISM's gauge of services industry employment slipped, with businesses
reporting that "labor shortages (were) experienced at all levels."

 

The economy is experiencing an acute shortage of labor as the pandemic
forced some people to drop out of work to become caregivers. Others are
reluctant to return for fear of contracting the virus, while some have
either retired or are seeking career changes.

 

There were a record 10.9 million job openings at the end of July. Economists
are cautiously optimistic that the labor crunch will start easing in the
fall and through winter after the expiration in September of federal
government-funded unemployment benefits, which businesses and Republicans
blamed for the worker shortage.

 

The Thomson Reuters Trust Principles.

 

 

Evergrande backer Chinese Estates' stock soars on take-private offer

(Reuters) - Shares of Chinese Estates Holdings (0127.HK), a former major
shareholder of embattled developer China Evergrande (3333.HK), jumped as
much as 32% on Thursday after it announced an offer to be taken private for
HK$1.91 billion ($245 million).

 

The Hong Kong developer said on Wednesday the family of Chinese Estates'
biggest shareholder, Joseph Lau, had proposed to take it private by offering
minority shareholders a 38% premium to its last traded price.

 

The offer represents the latest move by Lau and China Estates to emerge from
the shadow of Evergrande, which is floundering due to a huge debt load and
threatening the Hong Kong company's future.

 

Formerly Evergrande's second-biggest shareholder, Chinese Estates has
already slashed its holding over the past few months to 4.39% from 6.48%. It
has flagged a goal to exit the holding completely and estimates a loss of
HK$10.41 billion for the current year from the stake disposal. read more

 

 

Eugene Law, business development director of China Galaxy International
Financial, said as a listed company Chinese Estates would need to keep
updating on its position in Evergrande and "it does not want that trouble".

 

Once China's top-selling property group, Evergrande is facing one of the
country's largest-ever defaults as it struggles with more than $300 billion
of debt. Its fate is also unsettling global markets wary about the fallout
of one of China's biggest borrowers toppling.

 

Chinese Estates' shares rose to HK$3.81 by noon. They resumed trading on
Thursday after being suspended on Sept. 29.

 

Shares of the Hong Kong developer were down 42% this year before the trading
suspension, dragged down by unrealized losses in its investment in
Evergrande whose stock took a hit due to liquidity crisis and default risks.

 

 

In a statement late on Wednesday, Chinese Estates said its stock price may
be further affected by Evergrande, as it is "cautious and concerned" about
recent developments at the Chinese developer.

 

A delisting would reduce the costs and management resources to maintain the
listing status, Chinese Estates added, and it could provide more flexibility
to implement long-term business strategies.

 

Other than Evergrande, Chinese Estates said it also has significant
investments in another Chinese developer, Kaisa Group (1638.HK), whose
shares have also suffered falls over the past few months on wider liquidity
concerns about China's real estate sector.

 

Chinese Estates' former chairman Lau has been a major backer of Evergrande
chairman Hui Ka Yan and is a member of the so-called "poker club" of Hong
Kong tycoons that includes Hui. read more

 

Lau, whose family owns about 75% of Chinese Estates' equity capital,
resigned as its chairman and chief executive in 2014 after he was found
guilty of bribery and money laundering charges in the gambling hub of Macau.

 

($1 = 7.7857 Hong Kong dollars)

 

The Thomson Reuters Trust Principles.

 

 

 

GM aims to double revenues by 2030 as it drives to pass Tesla

(Reuters) - General Motors Co (GM.N) Chief Executive Mary Barra told
investors on Wednesday that the automaker plans to double revenue by 2030,
expanding profits from combustion vehicles even as it rolls out new electric
vehicles and new digitally powered services to catch up with Tesla Inc
(TSLA.O).

 

GM said if it succeeds, annual revenue by 2030 would be about $280 billion,
and the automaker would be the leader in U.S. electric vehicle sales. Chief
Financial Officer Paul Jacobson said GM expects pre-tax profit margins of 12
to 14%, which could beat current levels. That would imply annual pre-tax
profits of as much as $39 billion. read more

 

Jacobson said GM can fund $9 billion to $10 billion in annual capital
spending for electric vehicles and other initiatives while returning money
to shareholders.

 

"This won't all happen at once," Jacobson said.

 

GM projects its combustion vehicle business can grow even as annual electric
vehicle revenues rise to $90 billion by 2030 from $10 billion projected in
2023, Jacobson told investors after markets closed. The company also plans
to add $80 billion from new businesses such as the Cruise autonomous vehicle
ride service by 2030.

 

Barra has been campaigning to convince investors that General Motors can top
Tesla in technology development and profitability as the auto industry
navigates the most profound technology revolution since the mass-produced
Ford Model T. She and other GM executives began a two-day series of
presentations to investors at the automaker's Technical Center in Warren,
Michigan.

 

They said GM can transform itself "from automaker to platform innovator" - a
reference to Silicon Valley digital platform companies such as Apple Inc
that have far higher stock valuations than GM and other incumbent auto
manufacturers.

 

Barra took the helm at GM in 2014 and at one point almost doubled the share
price from a narrow band around its 2010 initial public offering price of
$33. The shares rose after hours on Wednesday after closing at $53.93.

 

Still, GM's market capitalization of about $78 billion remains far behind
Tesla's $773 billion market cap, reflecting investor skepticism that GM can
match Tesla's battery and software prowess.

 

Barra and GM President Mark Reuss outlined a plan for a transition to an
all-electric fleet by 2035 that starts gradually, then accelerates after
2030, by which time more than half of GM's factories in China and North
America will be "capable of EV production."

 

AGILE FACTORIES

 

GM has said it aspires to produce nothing but electric vehicles by 2035.
Reuss said that will depend on the "agility" of GM's factories, which will
build both combustion and electric vehicles.

 

"We want to take the entire workforce along with us,” Barra said. She and
Reuss insisted that GM's current workforce and factories are assets, not
liabilities. Electric vehicle startups are building new factories at great
expense, she noted, while GM already has plants and people it can repurpose.

 

In 2022, GM plans to launch an electric version of its best-selling North
American model, the Chevrolet Silverado pickup truck. Barra will unveil it
at the CES technology show on Jan. 5, GM said. Suppliers have said that
vehicle will be launched in late 2022.

 

“No one will be able to touch us in the electric truck space,” Reuss said.

 

Ford Motor Co (F.N), which is on track to beat GM to market with the
battery-electric Ford F-150 Lightning early next year, recently said it will
double capacity for the Lightning at its Dearborn, Michigan, factory. Ford
plans even more electric F-150 production at a complex planned for
Tennessee. Startup Rivian began production of its electric pickup last
month.

 

Tesla has delayed the launch of its futuristic Cybertruck.

 

GM executives have been careful not to make a hard commitment to abandon
internal combustion vehicles by 2035, saying that will depend on market
demand and government policy.

 

ELECTRIC DREAMS

 

Still, GM's embrace of electrification has won over investors increasingly
concerned about climate change. On Monday, hedge fund Engine No. 1 said GM
had carved a leadership position on battery technology and had a lot of
growth ahead. read more

 

GM also aims to expand profits from internal combustion vehicles, such as
the Chevrolet Silverado large SUVs such as the Cadillac Escalade.

 

Barra has expressed confidence GM can build profitable, higher-margin
software-driven services and capture new customers with electric vehicles,
such as a $30,000 electric Chevrolet crossover wagon.

 

GM is majority owner of autonomous vehicle services company Cruise, and
projects that company should deliver $50 billion in annual revenues by 2030.
Last week, Cruise received licenses in California to begin accepting
passengers, though it cannot yet charge for rides. read more

 

GM is also investing in the BrightDrop e-commerce delivery unit and
insurance offered through its Onstar telematics brand. In all, GM said it is
managing 20 startups to develop new lines of business.

 

Tesla's impact was evident. GM said that by 2023 it will offer a new version
of its Ultra Cruise hands-free driving system using sensors to enable
hands-free driving in "95% of all driving scenarios."

 

Tesla Chief Executive Elon Musk has made similar claims for future versions
of the electric automaker's Autopilot technology.

 

The Thomson Reuters Trust Principles.

 

 

 

 

Asian shares rise on stronger global risk appetite as oil prices ease

(Reuters) - Asian shares rallied on Thursday, taking heart from a late
recovery on Wall Street after U.S. politicians appeared near to a temporary
deal to avert a federal debt default and as Russia reassured Europe on gas
supplies, calming volatile markets.

 

Oil prices also dropped back from multi-year highs hit a day earlier, having
been a major contributor to this week's equities sell off, while U.S.
benchmark Treasury yields and major currencies steadied amid the calmer
mood.

 

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS)
rose 1.25% in early trade, regaining ground lost in recent days to be little
changed on the week.

 

"Sharp increases in energy prices have clearly contributed to the latest leg
up in bond yields, which has been accompanied by weakness in equity markets
around the world," analysts at Capital Economics wrote in a note.

 

As oil prices came off on Thursday, there were gains in share benchmarks in
Korea (.KS11) up 1.3%, Australia (.AXJO) up 0.64%, and Hong Kong (.HSI) up
2%.

 

Japan's Nikkei (.N225) rose 0.89%, and U.S. stock futures, the S&P 500
e-minis , gained 0.42%.

 

Chinese markets remained closed for a holiday.

 

U.S. crude dipped 0.34% to $77.17 a barrel, extending a fall from late on
Wednesday after hitting a seven-year high of $79.78 earlier that day. Brent
crude was steady at $81.04 per barrel, off its three -year high of $83.47
also hit on Wednesday.

 

The falls followed an unexpected rise in U.S. crude stocks.

 

Gas prices also fell, a day after Russian leaders indicated that supply to
Europe could increase, which contributed to a late rally on Wall Street
after declines in European stock markets. read more

 

The Dow Jones Industrial Average (.DJI) rose 0.3%, the S&P 500 <.SPX gained
0.41% and the Nasdaq Composite (.IXIC) added 0.47%, also boosted by a
proposal from the Senate's top Republican, Mitch McConnell, to allow an
extension of the federal debt ceiling into December.

 

Worries the U.S. would default on its debt, have weighed on stocks along
with the rising energy prices.

 

The next U.S. event in focus for global investors is payrolls data due
Friday, with investors anticipating that a reasonable figure will mean the
U.S. Federal Reserve will begin tapering its massive stimulus programme at
its November meeting.

 

The dollar was steady, not too far from 12 month highs hit last month
against a basket of currencies , and held at a 14 month high against the
Euro.

 

The yield on benchmark 10-year Treasury notes was 1.5415% off from
Wednesday's three and a half month high of 1.573%.

 

"Sentiment and momentum are variable, causing shifting risk appetite," wrote
Westpac analysts of US rates.

 

"Price action is linked to equity market gyrations, a hawkish Fed outlook
and fears of stagflation as oil surges and the politics around the debt
ceiling threaten the domestic economy."

 

Spot gold was little changed, trading at $1,761.89 per ounce.

 

The Thomson Reuters Trust Principles.

 

 

 

Myanmar central bank sees currency stabilising on new measures

(Reuters) - Military-appointed authorities in Myanmar are making progress in
addressing its currency crisis, with the kyat stabilising and efforts
underway to keep prices under control, a senior central bank official said.

 

The kyat lost more than 60% of its value in September, driving up food and
fuel prices in a fragile economy that has languished since a Feb. 1 military
coup and is on course for a double-digit contraction this year. read more

 

Win Thaw, deputy governor of the Central Bank of Myanmar, told Reuters that
a rule this week requiring exporters to sell excess foreign exchange to
banks within 30 days of receipt was helping to boost supply and bring the
exchange rate down.

 

"The rate is coming down to what it should be under normal circumstances,"
he said by telephone.

 

"That limited period will become one of the factors to lower it," he said,
referring to the 30-day requirement.

 

Myanmar has not disclosed its level of foreign currency reserves. World Bank
data shows it had just $7.67 billion in reserves at the end of 2020, before
the February coup.

 

Skyrocketing prices of goods have historically been problematic for military
governments in Myanmar, with the cost of cooking gas among the triggers of a
monk-led "Saffron Revolution" in 2007.

 

The military last week said its economic problems were caused by "outside
factors" and COVID-19 outbreaks. read more

 

Its spokesman, Zaw Min Tun, said the central bank had been unable to meet
local demand for dollars.

 

Win Thaw said he hoped an expected rise in exports in November and December
would help.

 

"If there is more export income, the dollar price will no longer rise again.
It will gradually come down and return to its normal rate," he said.

 

The central bank had tried tethering the kyat 0.8% either side of its
reference rate against the dollar in August but abandoned the measure as
pressure on the exchange rate grew.

 

Money exchanges quoted about 1,695 kyat to the dollar in early September,
but that soared to around 2,700 on Sept. 28. That compares with 1,395 kyat
before the February coup.

 

This week, authorised dealers have been selling dollars for 2,200-2,300
kyat.

 

The Thomson Reuters Trust Principles.

 

 

 

EXCLUSIVE Northvolt plots EV battery grab with $750 mln Swedish lab plan

(Reuters) - Northvolt plans to invest $750 million expanding its laboratory
facility in Sweden, a top executive said, to meet soaring demand for
lithium-ion batteries as carmakers go electric.

 

As it aims to take on major Asian players such as CATL (300750.SZ) and LG
Chem (051910.KS), Northvolt said it would set up the "first R&D campus
covering the entire battery ecosystem".

 

Northvolt, which plans to start production this year at its gigafactory in
Sweden's Skelleftea, plans to build a new office in Vasteras, increase
headcount there to at least 1,000 from 400, and create a centre for
customers to experiment with battery technologies and electrification.

 

China is currently home to some 80% of lithium-ion cell production, but with
demand soaring, capacity in Europe is set to expand quickly and Northvolt is
targeting a 25% market share in Europe by 2030.

 

"The development in Vasteras is the funnel right now that will enable us to
do that land grab," Northvolt Chief Executive Peter Carlsson told Reuters,
adding that this would require it to hire around 5,000 engineers within five
years.

 

"I have some slide presentation on the very early concepts ... we hadn't
chosen Vasteras then but we had a first budget of 80 million dollars,"
Carlsson said in an interview.

 

European carmakers are looking to use batteries from Northvolt for their
electric vehicles to rival those from Tesla (TSLA.O), which is building its
own factory in Germany.

 

Backed by Volkswagen (VOWG_p.DE), Scania (SCVSA.UL), the European Commission
and Spotify founder Daniel Ek, Northvolt has raised funding of more than
$6.5 billion, with nearly $20 billion in orders from the biggest automakers.
read more

 

A source said in June that its latest fundraising had valued Northvolt at
$11.75 billion. Electric vehicle and related sectors have been a big draw
for investors, who have driven up the valuations of pioneers such as Tesla
and Lucid Motors.

 

The Thomson Reuters Trust Principles.

 

 

 

Dow aims to add $3 bln to core earnings by 2030 with new net-zero unit

(Reuters) - Dow Inc (DOW.N) unveiled on Wednesday plans to boost its core
earnings by $3 billion a year over the next decade, with investments that
include building a new net-zero carbon emissions ethylene and derivatives
facility in Alberta, Canada.

 

The chemicals maker, once part of DowDupont, joins a growing list of
companies that have announced plans to cut emissions and reduce carbon
footprint following pressure from investors.

 

Calling the new project a "no-regrets" move, Dow's Chief Executive Officer
Jim Fitterling said he expects the facility to deliver about $1 billion of
additional earnings before interest, tax, depreciation and amortization
(EBITDA) per year by 2030.

 

Near-term investments to expand manufacturing capacity of chemicals and
materials used in packaging, specialty plastics, coatings and other
businesses are expected to generate about $2 billion of EBITDA, the company
said.

 

The new project would more than triple Dow's ethylene and polyethylene
capacity at its Fort Saskatchewan, Alberta site, while retrofitting the
site's existing assets to produce net-zero carbon emissions. Dow expects to
allocate about $1 billion of capital spending annually to decarbonize its
global assets site-by-site.

 

The project will help Dow produce about 3.2 million metric tons of certified
low- to zero-carbon emissions polyethylene and ethylene derivatives.

 

Dow said it chose Fort Saskatchewan because the region offers competitive
energy and feedstock prices, and has access to third-party carbon storage
facilities that will help the project reach net-zero emissions.

 

Alberta Premier Jason Kenney said the project could become the largest
investment in the province in more than a decade. Alberta is Canada's main
energy-producing province but its economy has been battered in recent years
by volatile global oil prices.

 

"If this project receives regulatory approval and a positive final
investment decision, it will lead to a multibillion-dollar investment in our
economy and huge job opportunities in both the construction and operating
phases," Kenney said in a statement.

 

Dow also signed eight new renewable power purchase agreements to reduce
Scope 2 emissions, or emissions from the power a company uses for its
operations, by more than 600,000 metric tons of carbon dioxide equivalent
per year.

 

Last year Dow said that by 2030, it would reduce its net annual carbon
emissions by 5 million metric tons versus its 2020 baseline, amounting to a
15% reduction, and set a target to be carbon neutral by 2050.

 

Net zero plans require companies to decrease carbon dioxide emissions and
offset any remaining emissions using projects that capture the gas.

 

The Thomson Reuters Trust Principles.

 

 

New Japan leader likely to stick to economic policy -Fitch

(Reuters) - Japan's new Prime Minister Fumio Kishida is likely to continue
the broad economic policies of predecessors Shinzo Abe and Yoshihide Suga,
including support for the central bank's massive stimulus programme, ratings
agency Fitch said on Thursday.

 

"The economy should benefit in the near term from an ebbing of the threat
from the COVID-19 pandemic, regardless of the impact of policy reforms"
proposed by Kishida, it said.

 

The Thomson Reuters Trust Principles.

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

National Unity Day

 

December 22

 


 

Christmas Day

 

December 25

 


 

Boxing Day

 

December 26

 


 

Public Holiday in lieu of Boxing Day falling on a Sunday

 

December 27

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

 

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


(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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