Major International Business Headlines Brief::: 09 October 2021

Sat Oct 9 10:11:48 CAT 2021

 <https://bullszimbabwe.com/> 

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments
<https://bullszimbabwe.com/category/blogs/bullish-thoughts/> Bullish
Thoughts        <http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Major International Business Headlines Brief::: 09 October 2021

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

ü  TSMC and Sony considering joint chip factory, Japan gov't to help -Nikkei

ü  White House weighs broader oversight of cryptocurrency market

ü  S&P 500 ends lower after U.S. September jobs miss

ü  Tesla's Brandenburg factory becomes festival site for 'Giga-Fest'

ü  Kenya: Why Kenya Power is Now a 'Special State Project'

ü  Namibia: Economy Stacks Up Well Despite Covid-19 Impact Says Central Bank
Governor

ü  Namibia: Development Bank Opens Climate Change Adaptation Financing

ü  Tunisia: Financial Market's Contribution Rate to Financing of Private
Investments Stands At 16.4 Percent in 2020 -CMF

ü  Wall St Week Ahead Energy price spike adds market risk as earnings arrive

ü  Georgieva's future at helm of IMF still unclear after marathon board
meeting

ü  Evergrande says six execs have returned funds from advance redemption of
products

ü  Global tax deal seeks to end havens, criticized for 'no teeth'

ü  Tesla's Brandenburg factory becomes festival site for 'Giga-Fest'

ü  Nations agree to 15% minimum corporate tax rate

ü  US adds 194,000 jobs in September as Delta hits hiring

ü  Air India: Struggling national carrier sold to Tata Sons

 <mailto:info at bulls.co.zw> 

TSMC and Sony considering joint chip factory, Japan gov't to help -Nikkei

(Reuters) - Taiwan's TSMC (2330.TW) and Japan's Sony Group Corp (6758.T) are
considering jointly building a chip factory in Japan, with the government
ready to pay for some of the investment of about 800 billion yen ($7.15
billion), the Nikkei reported on Friday.

The plant in Kumamoto, southern Japan, is expected to produce semiconductors
for automobiles, camera image sensors and other products which have been hit
by a global chip shortage, and is likely to start operations by 2024, the
report said.

Japan's top auto parts maker Denso (6902.T) is also looking to participate
through such steps as setting up equipment at the site, the report said. The
Toyota Motor group member seeks stable supplies of chips used in its auto
parts.

Both Sony and TSMC declined to comment, while Denso was not immediately
available to comment. TSMC, the world's largest contract chipmaker and major
Apple Inc (AAPL.O) supplier had said in July that it was reviewing a plan to
set up production in Japan.

TSMC has been concerned about the the concentration of chipmaking capability
in Taiwan, which produces the majority of the world's most advanced chips.
China does not rule out the use of force to bring the democratic island
under its control.

Japanese officials are also worried about the supply chain stability of its
industries, with a global chip shortage forcing automakers to cut
production.

($1 = 111.8600 yen)

The Thomson Reuters Trust Principles

White House weighs broader oversight of cryptocurrency market

(Reuters) - The White House is considering a wide ranging oversight of the
cryptocurrency market to combat the growing threat of ransomware and other
cyber crime, a spokeswoman said on Friday.

"The NSC and NEC are coordinating across the interagency to look at ways we
can ensure that cryptocurrency and other digital assets are not used to prop
up bad actors, including ransomware criminals," the White House National
Security Council spokeswoman said.

The oversight could include an executive order, Bloomberg News reported on
Thursday. The spokeswoman did not comment on whether an executive order will
be part of such oversight.

Ransom software works by encrypting victims' data. Typically hackers will
offer the victim a key in return for cryptocurrency payments that can run
into hundreds of thousands or even millions of dollars.

Earlier this month, President Joe Biden said top U.S. national security
advisers will gather officials from 30 countries this month with plans to
combat the growing threat of ransomware and other cyber crime.

An online session hosted by the White House National Security Council will
also be aimed at "improving law enforcement collaboration" on issues like
"the illicit use of cryptocurrency," Biden had said.

The Thomson Reuters Trust Principles.

S&P 500 ends lower after U.S. September jobs miss

(Reuters) - The S&P 500 ended lower on Friday after data showed weaker jobs
growth than expected in September, yet investors still expected the Federal
Reserve to begin tapering asset purchases this year.

Wall Street's three main indexes were mixed for much of the session before
losing ground toward the end. All three indexes posted weekly gains.

Comcast Corp (CMCSA.O) tumbled after Wells Fargo cut its price target on the
media company, while Charter Communications Inc (CHTR.O) fell after Wells
Fargo downgraded that cable operator to "underweight" from "overweight".

Both companies were among the biggest drags on the S&P 500 and Nasdaq.

Real estate (.SPLRCR) and utilities (.SPLRCU) were the poorest performers
among 11 S&P 500 sector indexes, down 1.1% and 0.7%, respectively.

The S&P 500 energy sector index (.SPNY) jumped 3.1%, with oil up more than
4% on the week as a global energy crunch has boosted prices to their highest
since 2014. read more

Chevron (CVX.N) and Exxon Mobil (XOM.N) rallied more than 2% and were among
the companies giving the S&P 500 the greatest lift.

The Labor Department's nonfarm payrolls report showed the U.S. economy in
September created the fewest jobs in nine months as hiring dropped at
schools and some businesses were short of workers. The unemployment rate
fell to 4.8% from 5.2% in August and average hourly earnings rose 0.6%,
which was more than expected. read more

“I think that the Federal Reserve made it very clear that they don’t need a
blockbuster jobs report to taper in November," said Kathy Lien, Managing
Director at BK Asset Management in New York. "I think the Fed remains on
track.”

Futures on the federal funds rate priced in a quarter-point tightening by
the Federal Reserve by November or December next year. read more

The Dow Jones Industrial Average (.DJI) dipped 0.03% to end at 34,746.25
points, while the S&P 500 (.SPX) lost 0.19% to 4,391.35.

The Nasdaq Composite (.IXIC) dropped 0.51% to 14,579.54.

For the week, the S&P 500 rose 0.8%, the Dow added 1.2% and the Nasdaq
gained 0.1%.

Third-quarter reporting season kicks off next week, with JPMorgan Chase
(JPM.N) and other big banks among the first to post results. Investors are
focused on global supply chain problems and labor shortages.

Analysts on average expect S&P 500 earnings per share for the quarter to be
up almost 30%, according to Refinitiv.

"I think it’s going to be a dicey earnings season," warned Liz Young, head
of investment strategy at SoFi in New York. "If supply-chain issues are
driving up costs, a company with strong pricing power can pass through those
rising costs. But you can’t pass through a labor shortage if you can’t find
workers to hire."

Declining issues outnumbered advancing ones on the NYSE by a 1.24-to-1
ratio; on Nasdaq, a 1.52-to-1 ratio favored decliners.

The S&P 500 posted 26 new 52-week highs and 3 new lows; the Nasdaq Composite
recorded 86 new highs and 113 new lows.

Volume on U.S. exchanges was 9.2 billion shares, compared with the 11
billion average over the last 20 trading days.

The Thomson Reuters Trust Principles.

Tesla's Brandenburg factory becomes festival site for 'Giga-Fest'

(Reuters) - From flashing lights and booming speakers to sprawling stages
and a Ferris wheel, Tesla's (TSLA.O) factory near Berlin has been
transformed into a festival site for a one-day county fair on Saturday,
hosted by CEO Elon Musk.

The fair, expected to attract tens of thousands of visitors with Brandenburg
locals given priority, will start at 10am and bands and DJs will "keep the
party going" late into the night, according to the official event website.

Musk is hoping to get the green light to start production at the site in
coming weeks, which at its peak will produce 500,000 battery-electric
vehicles (BEVs) a year - more than double Germany's BEV production in 2020.

The company has also submitted plans to invest 5 billion euros ($5.8
billion) in a battery plant with 50 GWh capacity next to the site,
outstripping Volkswagen's (VOWG_p.DE) planned 40GWh capacity site in
Salzgitter. read more

While Tesla has repeatedly reminded critics that the site will bring Germany
significantly closer to achieving its e-mobility goals, some locals and
environmental groups are unhappy with the American CEO's disruptive approach
which they say flies in the face of German business culture. read more

The latest consultation of public concerns towards the site closes on
October 14, after which the environmental ministry will decide whether to
reject or approve it. Brandenburg's economy minister has pinned chances of
approval at 95%.

Drone footage published on Twitter in the 24 hours before the fair was due
to start showed preparations were well under way, with sound checks of
booming techno beats, lighting tests and festival tents set up next to rows
of Tesla cars.

Tesla received approval from local authorities to have 9,000 people on site
at a time despite pandemic-related curbs limiting large gatherings to 5,000,
after it presented a plan for how it would keep the event COVID safe,
authorities said.

Attendees were given a time-slot for a 1.5-hour tour of the factory, and
must provide proof of a negative COVID-test, vaccination or recovery,
according to the entry ticket.

"We invite you to discover our factory from along our production lines.
You'll have the chance to see how tons of raw metal are melted, pressed and
put together to build our Model Y," the ticket reads.

($1 = 0.8649 euros)

The Thomson Reuters Trust Principles.

Kenya: Why Kenya Power is Now a 'Special State Project'

Ailing Kenya Power is now a special state project.

The government on Thursday moved to stop the mess at the struggling energy
giant when it ordered detectives to unearth the rot in one of the most
strategic parastatals.

The mismanagement dimming the lights of the national power supplier
threatens key sectors of the economy as the cost of electricity in Kenya
remains one of the highest in the world.

The intervention seeks to pull the firm from the brink of bankruptcy and
will see its operations - from recruitment, management to procurement - come
under close scrutiny.

Crisis meeting

The decision came after a three-hour crisis meeting convened by Interior
Cabinet Secretary Fred Matiang'i with Kenya Power board led by chairman
Vivienne Yeda and acting managing director Rosemary Oduor.

Energy Principal Secretary Gordon Kihalangwa, his Treasury counterpart
Julius Muia and Anne Eriksson, a member of the Presidential task force on
the Review of Power Purchase Agreements (PPAs) also attended.

While Dr Matiang'i fell short of declaring Kenya Power headquarters a crime
scene, he ordered a forensic audit to uncover financial dealings that border
on fraud and sabotage.

A multi-agency team made up of detectives from the Directorate of Criminal
Investigations, Financial Reporting Centre, Assets Recovery Agency and other
agencies will camp at the firm.

The scrutiny comes after claims that some workers have been colluding with
large electricity consumers to either lower or evade paying bills, with
brazen power theft making half of the company's losses.

Power purchase agreements that have punished consumers to expensive
electricity will be evaluated. The investigators will also look into
notorious multibillion-shilling tenders that have continued to plague the
company, insider trading, conflict of interests by top management at the
company and dubious deals by the company's workers.

"We are going to undertake a forensic audit of the systems at KPLC and the
billing system to ensure that it addresses some of these challenges that we
have," Dr Matiang'i, who is also the chairman of the Cabinet sub-committee
on Kenya Power, said in a press briefing.

"I am confident that some of the measures we have agreed on to implement the
report of the taskforce will lead to reduced and affordable power bills."

Being the nation's sole power distributor, its smooth running is central to
the government's plan for cheap and reliable energy.

But years of mismanagement have led accumulation of a mountain of debt and
multibillion-shilling annual losses, with the latest being Sh7 billion.

In its report to President Kenyatta last week, the task force led by John
Ngumi found huge differences between the cost of buying electricity from the
State-owned power generator KenGen and Independent Power Producers (IPPs).
There were also glaring disparities as regards who is given priority to
dispatch electricity to the national grid.

Electricity demand

It also found a mismatch in government projections of national growth in
electricity demand, leading to an expensive expansion of the power grid with
the actual demand growth recorded during the forecast period.

Further, the report found that poor contract management frameworks have left
Kenya Power bearing all the risk in the agreements with PPAs - thereby
placing the IPPs at a legal advantage.

Review or cancellations of such contracts is costly, on top of high
operational costs emanating from poor coordination of faculties at the firm.

A source at the meeting said the government is keen to expedite
implementation of the recommendations made by the task force, with a meeting
by all state agencies in the energy sector convened to agree on how to lower
power costs.

Dr Matiang'i also directed Kenya Power to immediately suspend ongoing and
pending negotiations with all current or planned PPAs, and a review of the
existing agreements.

"For the last six months, we have been working with the board (of KP) to
ensure that some of the things the board wants done are done quickly. You
will notice shortly that some of the changes are going to result in better
performance of KP and most importantly lead to affordable energy," he said.

"I am confident that will achieve the target we were given by the President.
He is concerned by the high cost of power and we have had to take very tough
decisions regarding PPAs."

Reduce costs

In a statement released by State House spokesperson Kanze Dena, President
Kenyatta said the task force's recommendations will reduce costs by 33 per
cent within four months.

Plagued by rising operational costs, mounting debt, corruption allegations
and stunted growth of power demand, it remains to be seen the effect of the
lower cost of electricity means for revenue performance of Kenya Power,
which is currently relying on financial support from the government.

This as former Energy Cabinet Secretary Charles Keter last month revealed
Kenya Power had withdrawn its application for a new tariff from the energy
regulator that would have seen power bills increase by 20 per cent in its
bid to increase revenues amid stagnating demand for electricity.

"Currently as we speak there is no application for a tariff review. The last
one was withdrawn because Kenya Power had a new board and they wanted to
review some of the issues and they have not come back with it," Mr Keter
said.

The company had blamed reluctance by the Energy and Petroleum Regulatory
Authority (Epra) to review the electricity tariff that was set in 2018 for
derailing its bid to grow revenue to cut its reliance on borrowing to stay
afloat at a time it is raking in huge annual losses.-Nation.

Namibia: Economy Stacks Up Well Despite Covid-19 Impact Says Central Bank
Governor

The Governor of the Bank of Namibia, Johannes ! Gawaxab is confident that
Namibia can rebound from the economic scarring accentuated by the COVID-19
pandemic.

He said this during a public lecture hosted at the University of Namibia
campus in Keetmanshoop on 07 October, titled: 'How Namibia Stacks Up amid
the Impact of COVID-19'.

!Gawaxab made a compelling case for Namibia as a country endowed with
natural beauty, diversity and resources. In this regard, he said, the
country punches above its weight despite its relatively small size in terms
of population on the African continent.

He said several indicators validate Namibia's strong showing on metrics such
as governance, competitiveness and overall development since independence.

!Gawaxab stated that Namibia made steady progress over the past three
decades reducing income inequality and poverty while improving the quality
of life for most Namibians.

However, the Covid-19 pandemic, the Governor warned, being a historic
calamity of unprecedented proportion has the potential to wipe out the good
progress on all fronts.

Overall, the country's real GDP contracted by 8.5% in 2020, with the
worst-hit sector hotels and restaurants, shrinking by 31.2%. The economy is
only expected to recover gradually during 2021 by 1.4% then improve to a
3,4% growth rate in 2022.

Retrenchments and job losses, reported at 13 000 during 2020 and the first
half of 2021, have seen Namibians being laid off as a direct consequence of
the pandemic, exacerbating the precarious unemployment situation in the
country. Job losses and reduced income have affected the ability of some
owners to repay their instalment credit due to the prolonged weak economic
environment, now worsened by the pandemic.

"Building on its strong points, Namibia can emerge from the constraints
posed by Covid-19, and addressing its challenges with urgency and resolve, a
return to vibrant growth is in sight. There are several promising projects
and initiatives to reinvigorate growth, also here in the South, on the
horizon. Continuous reforms and better macroeconomic management coupled with
investments and adapting to a changing landscape are inevitable and crucial
to secure a recovery going forward," !Gawaxab said.

The Governor restated the central bank's commitment to play its role in
supporting growth through financial stability, well-contained inflation, and
growth-supporting interest rates. However, he said, monetary and fiscal
policies can only do so much, and the road to recovery is presently affected
by slow uptake of vaccinations in some parts of the country, which impacts
the country's ability to resume economic activities.

!Gawaxab said that trivializing Covid-19 and vaccine hesitancy can be
disastrous as the country is not out of the woods yet, adding that
vaccination is a crucial element of reviving the economy.-Economist.

Namibia: Development Bank Opens Climate Change Adaptation Financing

The Development Bank of Namibia (DBN) has announced a facility to finance
climate change adaptation, provides an affordable and tailored financing
solution for climate and environmentally friendly projects.

The Bank has previously financed low-carbon renewable energy generation,
water reclamation for industrial use in Walvis Bay, water storage in
Neckartal Dam and reclamation initiatives.

DBN CEO Martin Inkumbi said financing for climate adaptation is important,
and there is a range of affordable financing instruments for such business
projects.

The Bank, he said, has already pioneered financing models for renewable
energy, and is now setting its sights on, energy and water use efficiency as
well as mitigating the effects of rising temperatures.

The Bank has financed large scale water infrastructure such as Neckartal Dam
and Aqua Utilities which semi-purified water for industrial use at Walvis
Bay.

"However, in the face of prolonged droughts, there is an opportunity for
enterprises to invest in water efficiency. Investing in technology and
processes that are energy and water-efficient reduces the amount of energy
and water consumption per output for a business, which lowers production and
or operational costs and improves profitability. Although water efficiency
will not alleviate drought, it can lead to improvements in enterprises
bottom line, in addition to preserving the environment," Inkumbi said.

He added that the Bank has experience in water reticulation for local
authorities and PPPs but said there was still scope for further development
in terms of water recycling, reclamation and storage in abattoirs.

On the topic of rising temperatures, Inkumbi noted that there is a twofold
cost. The first cost is the cost of cooling facilities, and the second cost
is the cost of mitigating health issues caused by rising heat. The cost of
cooling facilities adds to the cost of an enterprise. It also places a
burden on power generation. By constructing plants and facilities with heat
dissipation in mind, these circumstances can be mitigated.

He extended the benefits of energy-efficient housing developments,
explaining that incorporating heat dissipation would reduce the cost of
running a household as well as improving the health of its residents. This,
Inkumbi said would dovetail well with the Bank's finance for affordable
housing projects.

Asked about how the facility would benefit enterprises and initiatives,
Inkumbi said that there is an understandable reticence to finance projects
with unfamiliar financing outcomes.

"This was the case when DBN pioneered finance for privately-owned renewable
energy. The Bank, however, de-risks innovative projects with extensive due
diligence on innovation and absorbs, manages and learns from its risks. In
this way, the Bank hopes to pioneer finance for climate change adaptation
that will make Namibia more sustainable," Inkumbi said.-Namibia Economist.

Tunisia: Financial Market's Contribution Rate to Financing of Private
Investments Stands At 16.4 Percent in 2020 -CMF

Tunis/Tunisia — The financial market's contribution rate to the financing of
private investments recorded a notable increase in 2020, reaching 16.4%,
against 9.8% in 2019, according to the 2020 annual report of the Financial
Market Council (CMF).

This is due to the noteworthy rise in the overall volume of issues in 2020,
to 1,235.6 million dinars (MD) against 1,058.8 MD in 2019, reveals the
report presented on Thursday by CMF President Salah Essayel to President
Kais Saied.

The report underlined the return of listings on the Tunis Stock Exchange
with the entry of a company on the main market, generating an additional
market capitalisation of 249.8 MD. The number of listed companies thus edged
up to 80 by the end of 2020.

The document also set out the measures taken to deal with the fallout of the
COVID-19 pandemic on the national financial market. These measures consisted
in setting the maximum static threshold for the stock market session at 3%,
introducing a "day" validity for seized orders and implementing a daily
purge of the remaining order book by the stock market.

This helped overcome the major downturn suffered by the Tunisian stock
market's flagship index in March 2020 and end the year with a moderate
decline of only 3.33%, allowing the Tunis Stock Exchange to rank third in
terms of annual performance after the Saudi and Qatari stock exchanges.

In this regard, it should be noted that unlike many international stock
exchanges, the Tunis Stock Exchange has not seen a massive withdrawal of
foreign investors. Thus, the share of foreigners in the market
capitalisation recorded a slight increase compared to 2019, from 24.73% to
25.25%.

Likewise, the net assets of undertakings for collective investment in
transferable securities (UCITS) saw a sharp increase from 3,678 MD at the
end of 2019 to 4,709 MD at the end of 2020. The venture capital sector also
continued to post positive indicators as the number of projects achieved in
2020 reached 152, worth 543.8 MD compared to 430.2 MD in 2019.

49.2% of the achieved projects involved companies employing less than 20
workers and 19.3% concerned companies with 20 to 50 workers. This reveals
the importance of the venture capital sector in terms of boosting the equity
capital of Small- and Medium-sized Enterprises (SMEs) and creating jobs,
notably in interior regions.

Overall, venture capital investments helped generate 8,000 direct jobs
during 2020.

As for the stock market regulator's activity, the 2020 report presented the
CMF's achievements in enhancing the financial transparency of publicly
traded companies, notably in light of the COVID-19 pandemic's impact on the
situation of these companies. The CMF accordingly required these companies
to disclose to the public information detailing the effects of the health
crisis on their activities and the strategic and operational decisions they
took to address the crisis.

As part of its monitoring mission and in a bid to ensure the integrity of
the stock market and to step up the investors' confidence, the CMF further
initiated 14 investigations and examined 4 complaints in 2020.

Following the completion of investigations, the Financial Market Council's
College ruled in 2020 on the files related to investigations and closed
complaints and imposed disciplinary and financial sanctions on the
perpetrators in order to protect the financial market against the identified
shortcomings and failures.

//New provision to reinforce good governance requirements within listed
companies//

As regards legal innovations, the annual report outlined the CMF's work on a
general decision aimed at reinforcing the requirements of good governance in
listed companies by establishing criteria and procedures for appointing
independent members and the representative of minority shareholders to the
board of directors and supervisory board of the concerned companies.

The CMF also contributed in 2020 to the drafting of the law on Crowdfunding,
a new financial activity that can be a suitable solution for providing
financial resources to small and medium-sized enterprises and start-ups
through the collection of funds from the public on a dedicated internet
platform.-Tunis Afrique Presse.

Wall St Week Ahead Energy price spike adds market risk as earnings arrive

(Reuters) - U.S. stock market investors are gauging whether more volatility
is ahead because of surging global energy prices, which could drive up
inflation, erode profit margins and pressure consumer spending.

Stocks rebounded this week after Monday's losses left the S&P 500 (.SPX)
down 5.2% from its record high hit in September. A truce in the U.S.
Congress to avoid a debt default provided some relief, but investors remain
worried about inflation, higher U.S. Treasury yields and the Federal
Reserve's plan to unwind its easy money policies.

Energy costs are a major factor for inflation, and will be a key topic as
companies report third-quarter results in coming weeks. Oil prices have
surged more than 25% since late August, with Brent topping $80 a barrel and
hitting three-year highs. Natural gas prices in Europe have rocketed,
causing alarm among political leaders. read more

Oil prices have a "roughly neutral" affect on overall corporate earnings,
according to Goldman Sachs strategists, with every 10% increase in Brent
prices boosting S&P 500 earnings per share by 0.3%.

Energy shares have soared as crude prices climbed, yet higher prices could
weigh on companies ranging from transportation to consumer discretionary
firms.

"We are going to find out if this piece of the inflation puzzle is the straw
that breaks the camel’s back and actually starts cutting into margins," said
Art Hogan, chief market strategist at National Securities. "There are
incremental costs to everything when energy prices go up."

Despite September's pullback, the S&P 500 remains up about 17% so far in
2021. Even as investors swooped in to buy the market's latest dip, some Wall
Street strategists are pointing to risks that could come with jumping into
equities. read more

Analysts at Capital Economics said in a note that rising energy prices could
put more upward pressure on bond yields. A jump in yields roiled stocks in
recent weeks, particularly tech shares.

If oil prices keep rising toward $100 a barrel, that "could continue to
weigh on sentiment," said Michael Arone, chief investment strategist at
State Street Global Advisors.

"If we break that barrier, I think it will influence how people are
forecasting economic growth and inflation and interest rates, which has
broad implications for sectors and industries and markets,” Arone said.

As oil gained since late August, the S&P 500 energy sector (.SPNY) has
increased 25% against a 1% drop for the overall index. Energy was the lone
sector to post positive performance in September.

The energy sector comprises less than 3% of the weight of the S&P 500,
however, and rising oil prices can raise fuel and other costs for companies
such as transportation firms, while also threatening demand by leading
consumers to pay more, such as for gas at the pump.

JPMorgan strategists in a note this week outlined a basket of stocks
negatively impacted by oil at $100 a barrel, including package delivery
company FedEx (FDX.N), discount retailer Dollar Tree (DLTR.O) and auto parts
retailer O'Reilly Automotive (ORLY.O).

In a note last week, U.S. economists at Deutsche Bank said the 101-cent
increase in gas prices from a year earlier would be expected to lead to a
reduction in income that can be spent on non-energy items of about $120
billion.

However, the relative amount of consumer spending on gasoline and other
energy expenditures has trended lower over the past 40 years, according to
data from Jack Janasiewicz, portfolio manager at Natixis Investment Managers
Solutions.

The percent of personal consumption expenditures devoted to gas and other
energy spending has fallen from over 6% in the early 1980s to 2.35% most
recently, Janasiewicz said.

And JPMorgan strategists said markets would be able to digest oil at $130 a
barrel, as the economy and consumer "were functioning just fine" over
2010-15, when oil averaged above $100.

"We do not believe that the current price of energy will have a significant
negative impact on the economy," the strategists wrote.

The Thomson Reuters Trust Principles.

Georgieva's future at helm of IMF still unclear after marathon board meeting

(Reuters) - The International Monetary Fund's executive board ended a
five-hour meeting about the future of Managing Director Kristalina Georgieva
without a decision on Friday, saying it would seek more information about
claims she pressured World Bank staff to alter data to benefit China in her
previous role.

The IMF said the board had made "significant progress" in its review of the
World Bank data-rigging scandal, but agreed to request "more clarifying
details with a view to very soon concluding its consideration of the
matter."

It was not immediately clear if the board would meet again before the start
of next week's high-profile meetings of the IMF and World Bank, where
Georgieva is due to play a prominent role in presenting the global lender's
newest economic forecasts.

Some European governments backed the Bulgarian economist to remain IMF chief
at Friday's marathon meeting, according to people familiar the matter.

Other officials sought more time to review discrepancies between accounts by
Georgieva and the WilmerHale law firm hired by the World Bank to investigate
data irregularities in its flagship Doing Business reports.

Georgieva said she had answered all the board's questions and remains at the
board's disposal as it concludes its review.

Georgieva has strongly denied the allegations, which date back to her time
as chief executive of the World Bank in 2017. Her lawyer claims that the
WilmerHale probe violated World Bank staff rules in part by denying her an
opportunity to respond to the accusations, an assertion WilmerHale disputes.

China has not commented on the findings of the report.

A French finance ministry source told Reuters that France planned to voice
support for Georgieva at the board meeting. Britain, Germany and Italy were
also expected to back Georgieva, another source briefed on the matter said.
She also received a statement of support from African finance ministers.

Officials at the French, British and German embassies in Washington had no
immediate comment. The Italian embassy did not immediately respond to
request for comment.

But hopes for any quick consensus on her future at the IMF faded amid
uncertainty over the U.S. position.

The U.S. Treasury, which controls 16.5% of the IMF's shares, declined to
comment after Friday's meeting.

Treasury spokesperson Alexandra LaManna said earlier this week that the
department has "pushed for a thorough and fair accounting of all the facts"
in the ongoing review. "Our primary responsibility is to uphold the
integrity of international financial institutions," she said.

MARATHON MEETINGS

Friday's marathon executive board meeting, held behind closed doors,
followed lengthy meetings with Georgieva and the WilmerHale lawyers earlier
in the week. read more .

WilmerHale's investigation report prepared for the World Bank board alleged
that when Georgieva was World Bank CEO in 2017, she applied "undue pressure"
on bank staff to make data changes to the flagship "Doing Business" report
to boost China's business-climate ranking.

Europe's backing is important since the IMF chief has traditionally been
chosen by European governments, with the U.S. administration nominating the
World Bank's president.

France in 2019 backed Georgieva, a former senior European Commission
official, as a compromise candidate to break a deadlock over the successor
to Christine Lagarde, now European Central Bank president. She is the first
person from a developing economy to head the institution.

ANNUAL MEETING CLOUDS

The issue is expected to dominate next week's annual meetings of the World
Bank and the IMF.

Current and former staff from both institutions said that no matter who is
to blame for the altered data, the scandal has dented their research
reputations, raising critical questions over whether that work is subject to
member country influence.

Anne Krueger, a former World Bank chief economist and IMF first deputy
managing director, argued in a blog post on Thursday that Georgieva must
step down to restore the Fund's credibility.

"Should Georgieva remain in her position, she and her staff will surely be
pressured to alter other countries' data and rankings," Krueger wrote. "And
even if they resist, the reports they produce will be suspect. The entire
institution's work will be devalued."

The Thomson Reuters Trust Principles.

Evergrande says six execs have returned funds from advance redemption of
products

(Reuters) - Six executives of heavily indebted China Evergrande Group
(3333.HK) have returned funds from early redemptions of the company's
investment products, the property group said on Saturday.

Evergrande, in a liquidity crisis with over $300 billion in liabilities as
offshore bondholders fear an imminent default, has not spoken publicly about
missing recent interest payments to bondholders.

The redemption occurred earlier this year and all funds were returned in
full before Friday, the company said in a statement. It said it has imposed
punishment and held the six accountable, but gave no details.

Between May 1 and Sept. 7, the six executives made early redemptions of 12
investment products without identifying the executives or giving details on
the nature of the products. 

The company has epitomised China's freewheeling era of borrowing and
building. Uncertainty about its ability to meet funding obligations - equal
to 2% of China's gross domestic product - has sent jitters through markets.
read more

The group has been hit by recent ratings downgrades, with both S&P Global
Ratings and Fitch Ratings warning of the risk of default. read more

The Thomson Reuters Trust Principles.

Global tax deal seeks to end havens, criticized for 'no teeth'

(Reuters) - A group of 136 countries on Friday set a minimum global tax rate
of 15% for big companies and sought to make it harder for them to avoid
taxation in a landmark deal that U.S. President Joe Biden said levelled the
playing field.

The deal aims to end a four-decade-long "race to the bottom" by setting a
floor for countries that have sought to attract investment and jobs by
taxing multinational companies lightly, effectively allowing them to shop
around for low tax rates.

The 15% floor agreed to is, however, well below a corporate tax rate which
averages around 23.5% in industrialised countries.

Some developing countries that had wanted a higher rate said their interests
had been sidelined to accommodate richer nations, while NGOs criticized the
deal's many exemptions, with Oxfam saying it effectively had "no teeth."

The accord also promises to be a tough sell in Washington, where a group of
Republican U.S. senators sent a letter to Treasury Secretary Janet Yellen
saying they had serious concerns.

Negotiations have been going on for four years, with the deal finally agreed
when Ireland, Estonia and Hungary dropped their opposition and signed up.

The deal aims to stop large firms booking profits in low-tax countries such
as Ireland regardless of where their clients are, an issue that has become
ever more pressing with the growth of 'Big Tech' giants that can easily do
business across borders.

"Establishing, for the first time in history, a strong global minimum tax
will finally even the playing field for American workers and taxpayers,
along with the rest of the world," Biden said in a statement.

Out of the 140 countries involved, 136 supported the deal, with Kenya,
Nigeria, Pakistan and Sri Lanka abstaining for now.

The Paris-based Organisation for Economic Cooperation and Development
(OECD), which has been leading the talks, said that the deal would cover 90%
of the global economy.

"We have taken another important step towards more tax justice," German
Finance Minister Olaf Scholz said in a statement emailed to Reuters.

"We now have a clear path to a fairer tax system, where large global players
pay their fair share wherever they do business," his British counterpart
Rishi Sunak said.

But with the ink barely dry, some countries were already raising concerns
about implementing the deal. The Swiss finance ministry demanded that the
interests of small economies be taken into account and said that the 2023
implementation date was impossible.

In the United States, meanwhile, Republican senators said they were
concerned the Biden administration was considering circumventing the need to
obtain the Senate's authority to implement treaties.

Under the Constitution, the Senate must ratify any treaty with a two-thirds
majority, or 67 votes. Biden's fellow Democrats control only 50 seats in the
100-member chamber. And Republicans in recent years have been overwhelmingly
hostile to treaties and have backed cuts in corporate taxes.

The reaction to the deal from U.S. markets was muted, with investors focused
instead on the latest payrolls data. Some of the Big Tech companies, often
cited by critics for seeking to lower taxes through operations overseas,
welcomed the accord.

"We are pleased to see an emerging international consensus," said Nick
Clegg, Facebook Inc vice president of global affairs. "Facebook has long
called for reform of the global tax rules, and we recognise this could mean
paying more tax, and in different places."

An Amazon.com Inc (AMZN.O) spokesperson said the company supports the
"progress towards a consensus-based solution for international tax
harmonization, and we look forward to their continued technical work."

Analysts at Morgan Stanley said that tech hardware, some media services, and
healthcare appeared to be the most exposed to a 15% minimum tax rate.

'INCREASED PROSPERITY'

Central to the agreement is a minimum corporate tax rate of 15% and allowing
governments to tax a greater share of foreign multinationals' profits.

Yellen hailed it as a victory for American families as well as international
business.

"We've turned tireless negotiations into decades of increased prosperity –
for both America and the world. Today's agreement represents a
once-in-a-generation accomplishment for economic diplomacy," Yellen said in
a statement.

The OECD said that the minimum rate would see countries collect around $150
billion in new revenues annually while taxing rights on more than $125
billion of profit would be shifted to countries where big multinationals
earn their income.

Ireland, Estonia and Hungary, all low tax countries, dropped their
objections this week as a compromise emerged on a deduction from the minimum
rate for multinationals with real physical business activities abroad.

However, many developing countries have said their interests have been
ignored and that wealthy nations were likely to continue dividing up the
spoils of foreign direct investment.

Argentine Economy Minister Martin Guzman said on Thursday that the proposals
forced developing countries to choose between "something bad and something
worse".

Campaign groups such as Oxfam said that the deal would not end tax havens.

"The tax devil is in the details, including a complex web of exemptions,"
Oxfam tax policy lead Susana Ruiz said in a statement.

"At the last minute a colossal 10-year grace period was slapped onto the
global corporate tax of 15%, and additional loopholes leave it with
practically no teeth," Ruiz added.

Companies with real assets and payrolls in a country can ensure some of
their income avoids the new minimum tax rate. The level of the exemption
tapers over a 10-year period.

The OECD said that the deal would next go to the Group of 20 economic powers
to formally endorse at a finance ministers' meeting in Washington on Oct. 13
and then on to a G20 leaders summit at the end of the month in Rome for
final approval.

Countries that back the deal are supposed to bring it onto their law books
next year so that it can take effect from 2023, which many officials have
said is extremely tight.

French Finance Minister Bruno Le Maire said Paris would use its European
Union presidency during the first half of 2022 to translate the agreement
into law across the 27-nation bloc.

The Thomson Reuters Trust Principles.

Tesla's Brandenburg factory becomes festival site for 'Giga-Fest'