Major International Business Headlines Brief::: 13 October 2021

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Major International Business Headlines Brief::: 13 October 2021

 


 

 


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

 


 

 


ü  UK economy grows on camping and dining out

ü  Debt ceiling: What's next for the US debt limit

ü  Inflation: Price of top China soy sauce raised as costs surge

ü  Apple shares drop on iPhone 13 production fears

ü  Felixstowe port says HGV shortage a factor in container logjam

ü  Nations must be 'absolutely vigilant' about inflation, says IMF

ü  Amazon drivers look to sue for compensation over rights

ü  Festering Evergrande contagion worries push China spreads to record

ü  Asian shares edgy amid inflation fears, dollar at one-year high

ü  China's Sept exports surprisingly robust despite power crunch

ü  Nestle revamps geographic structure, makes new board appointments

ü  Credit Suisse waives fees for clients hit by Greensill funds collapse

ü  Nigeria: Turning Kogi Into an Investment Destination

ü  Kenya: MPs Seek to Clip Petroleum CS Powers

ü  Malawi: Stadium Construction Works Restart, Excites Mzimba

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

UK economy grows on camping and dining out

The UK economy grew by 0.4% in August as more people dined out, went on
holiday and attended music festivals.

 

The Office for National Statistics (ONS) said the services sector made the
biggest contribution to economic growth in the first full month after all
Covid restrictions were lifted in England.

 

It said arts, entertainment and recreation grew 9%, boosted by sports clubs,
amusement parks and festivals.

 

There was also more demand for hotels and campsites.

 

Restrictions on social distancing were eased from 19 July.

 

The ONS said the economy is now 0.8% smaller than it was before the
pandemic.

 

 

"The economy picked up in August as bars, restaurants and festivals
benefited from the first full month without Covid-19 restrictions in
England," said Darren Morgan, director of economic statistics at the ONS.

 

"However, later and slightly weaker data from a number of industries now
mean we estimate the economy fell a little overall in July."

 

ONS said economic growth fell by 0.1% in July compared with initial
estimates of 0.1% growth.-BBC

 

 

 

Debt ceiling: What's next for the US debt limit

US lawmakers have temporarily put off a dangerous game of brinkmanship over
lifting the debt ceiling - a limit on how much the US government can borrow.

 

Treasury Secretary Janet Yellen had warned Congress that the country would
reach its ceiling by 18 October.

 

Republicans dared Democrats to resolve the conflict alone. Democrats called
that move reckless. The showdown prompted fears of a default on the national
debt.

 

But with the deadline only days away, Congress has voted to extend the debt
limit through early December, putting off the drama for a few weeks.

 

A default is still unlikely and has never happened in US history but if it
did, it would have catastrophic implications for the US and the global
economy.

 

Impasses over the debt ceiling are not new in Washington politics, but amid
a sluggish economic recovery from the ongoing Covid-19 pandemic, there were
some jitters in financial markets.

 

Here's what you need to know about the debt ceiling debate.

 

What is the debt ceiling?

The US government spends more money than it collects in taxes, so it borrows
to make up for the shortfall.

 

Borrowing is done via the US Treasury, through the issuing of bonds. US
government bonds are seen as among the world's safest and most reliable
investments.

 

In 1939, Congress established an aggregate limit or "ceiling" on how much
debt the government can accumulate.

 

The ceiling has been lifted on more than 100 occasions to allow the
government to borrow more. Congress often acts on it in a bipartisan manner
and it is rarely the subject of a political standoff.

 

As the country has become more bitterly partisan, however, lawmakers have
used the debt ceiling vote as leverage against other issues.

 

In a 2013 standoff, the last time the US was in serious danger of going over
a "debt cliff", Republicans put up a blockade over the spending plans of
President Barack Obama, a Democrat.

 

But, if history is any guide, lawmakers typically back down at the eleventh
hour. This appears to have been the case again this month.

 

What would have happened without a raise?

For the first time ever, sometime in the second half of October, the US
would have defaulted on its debts - which currently stand at around $28tn
(£21tn).

 

Such an event would cause delays or bring service adjustments to every
single government programme currently available, while also affecting
federal funding for individual states.

 

A Goldman Sachs report has estimated the US Treasury would need to halt more
than 40% of expected payments and financial aid to US households.

 

The Pentagon released a statement last week expressing concern that service
members too may not be paid in full or on time.

 

Default may also trigger a spike in interest rates and ruin America's
creditworthiness, making the US a more expensive place to live and damaging
the economy. It would also bring turmoil to the stock market.

 

In a Wall Street Journal opinion piece last month, Secretary Yellen warned
of "a historic financial crisis" that would leave the US "permanently
weaker" if the debt ceiling was not raised.

 

Not raising - or temporarily suspending - the debt ceiling also threatens
the health of the global economy, which would compound the impacts of the
ongoing once-in-a-century public health crisis.

 

Investors around the world may sell off US assets and become less trusting
of the US dollar, which has functioned as the world's reserve currency for
decades.

 

The International Monetary Fund (IMF) has called for an end to Washington's
"counterproductive brinkmanship" over the debt ceiling. It also suggested
the cap should be replaced with an alternative financial mechanism.

 

What are Democrats saying?

Last week, President Joe Biden condemned what he called "hypocritical,
dangerous and disgraceful" Republican opposition.

 

Mr Biden said it amounts to "playing Russian Roulette with the economy".

 

There are 50 Democrats in the Senate, but in order to pass a measure on the
debt ceiling without changing Senate rules, they require at least 10
Republican votes.

 

Democrats have pointed out that raising the debt ceiling is about paying off
existing obligations rather than paying for new ones, and that Mr Biden's
policies have only contributed to 3% of existing debts.

 

They also note that, during Mr Biden's predecessor Donald Trump's term, they
joined with Republicans to raise the debt ceiling three times.

 

What are Republicans saying?

Senate Republicans have said raising the debt limit is the "sole
responsibility" of Democrats because they hold power in the White House and
both chambers of Congress.

 

They are frustrated by new spending proposals that Democrats are trying to
push through without Republican support, through a procedural tool called
"budget reconciliation".

 

Minority Leader Mitch McConnell tweeted last month that his party "will not
facilitate another reckless, partisan taxing and spending spree".

 

Mr McConnell and other party leaders contend that if Democrats can use
reconciliation to achieve their economic policy goals, they can also use it
to take action on the debt ceiling.

 

Democrats have expressed concern over using reconciliation, saying it is too
complex and time-consuming a route to take.

 

How might this get resolved?

After two attempts to bring up the debt ceiling measure through regular
order in the Senate failed, Mr McConnell proposed an agreement last week
that Democrats have now accepted.

 

As part of the offer, Republicans will come along with Democrats to raise
the debt ceiling by a set amount - $480bn (£352bn) - to ensure bills are
paid through 3 December.

 

Some Republicans, including former president Donald Trump, have grumbled
that this amounts to "folding to the Democrats", but the temporary measure
has now passed through both chambers of Congress.

 

Under the agreement, Congress will still need to vote again in December to
avert a default.

 

The short-term fix gives the two parties more time to address their issues,
which clearly remain unsolved.

 

Shortly after the Senate passed the bill, Mr McConnell wrote a letter to
President Biden promising to "not provide such assistance again if your
all-Democrat government drifts into another avoidable crisis".

 

Separately, lawmakers also kicked the can down the road last week, when they
passed a separate short-term bill to keep the government funded until
December - so there may be a new round of headaches with the holidays right
around the corner.-BBC

 

 

 

Inflation: Price of top China soy sauce raised as costs surge

The maker of China's best-selling brand of soy sauce is raising prices, in
the latest sign of inflationary pressures in the world's second largest
economy.

 

Foshan Haitian Flavouring and Food Co said it will increase the prices of
its range of products by as much as 7% later this month.

 

The Shanghai-listed company pointed to higher costs of materials, transport
and energy for the decision.

 

Commodity prices have been surging as the world emerges from the pandemic.

 

Price increases will apply to soy sauce, oyster sauce and other sauce
products from 25 October, the firm said in a filing to the Shanghai Stock
Exchange.

 

The company said the hike is aimed at making its business more "sustainable"
in the face of rising costs.

 

Besides soy and oyster sauce, Foshan Haitian develops, makes, and
distributes other products including vinegar, chicken stock, monosodium
glutamate, and oil.

 

The company's shares were barely changed on Wednesday but have jumped by
more than 28% in the last month.

 

In recent weeks, China has seen energy costs surge, while power cuts have
hit some parts of the country as suppliers struggle to keep up with rising
demand.

 

Flooding in Shanxi province, which is one of the country's key mining
regions, has further complicated efforts to ease the energy shortage.

 

The price of coal used in China's power plants has hit record highs for
three days in a row as power plants compete for the fuel.

 

Bottles of oyster sauce produced by Foshan Haitian Flavoring & Food Co., Ltd
at a supermarket at Wanda Plaza in Beijing, China.

 

Global inflation concerns

In recent weeks, major global financial institutions have raised concerns
about the impact of inflation on the world economy.

 

Last month, the Organisation for Economic Co-operation and Development
forecast that, for at least the next two years, prices in the G20 group of
major economies will grow faster than they did before the pandemic.

 

Higher commodity prices and shipping costs are pushing up inflation, the
Paris-based policy forum said.

 

On Tuesday, the International Monetary Fund (IMF) said inflation would "stay
elevated" for the next few months in countries like the UK and US and
central banks needed to be vigilant.

 

IMF chief economist Gita Gopinath said one of the biggest problems was high
inflation, particularly in the UK and US where it is running at 3.2% and
5.3% respectively.

 

This was partly due to a "mismatch between demand and supply", but also
soaring gas prices in the case of the UK.-BBC

 

 

 

Apple shares drop on iPhone 13 production fears

Apple's shares dropped on Tuesday following reports it could slash its
iPhone 13 production targets due to the ongoing global computer chip
shortage.

 

The electronic giant had expected to make 90 million iPhones in the last
quarter of 2021, reported Bloomberg.

 

However, Apple was now having to tell its partners that the total will be
lower by as many as 10 million units, sources told the business magazine.

 

Apple shares fell 1.2% in after-hours trading on the news.

 

Apple iPhone 13 brings portrait mode for video

Why is there a chip shortage?

Semiconductor manufacturers Broadcom and Texas Instruments were also down
1%, as sources said they were struggling to deliver enough chips to Apple in
time.

 

The BBC has approached Apple, Broadcom and Texas Instruments for comment.

 

In September, Apple launched four new iPhone 13 models: iPhone 13, iPhone 13
mini, iPhone 13 Pro and iPhone 13 Pro Max. Pre-orders started on 17
September and started shipping on 24 September.

 

Widespread chip shortage

Millions of products across multiple industries today rely on computer chips
to run and semiconductor makers' plants are currently working flat-out to
meet demand.

 

Smartphone makers like Apple - some of the biggest chip purchasers in the
world - have been severely impacted, but also other sectors like the car
industry and the makers of video game consoles.

 

In July, Apple chief executive Tim Cook warned investors that the
semiconductor shortage could affect sales of the iPhone and the iPad.

 

Investment firm Wedbush estimates that Apple will be running a shortage of
more than five million iPhone 13 units for the holiday season, if consumer
demand continues to keep pace with the number of iPhones being shipped for
the rest of this year.

 

However, Wedbush analysts Daniel Ives and John Katsingris stressed that the
chip shortage was a "not a worry" as they expected the smartphones to be
available in the early part of 2022.

 

"Taking a step back, 5 million to 10 million units moving out of the
December quarter into the March quarter due to well-understood supply chain
issues is not a worry for us and ultimately speaks to a stronger demand
trajectory than Wall Street had been anticipating," they said.

 

"We view today's news as nothing more than a speed bump on a multi-year
supercycle iPhone 12/13 that continues to play out."

 

Their views are shared by several other analysts, who have forecast that the
new iPhone 13 models will have a strong sales year as consumers look to
upgrade devices for 5G networks.-BBC

 

 

 

Felixstowe port says HGV shortage a factor in container logjam

The UK's largest commercial port says the supply chain crisis has caused a
logjam of shipping containers.

 

The Port of Felixstowe, which handles 36% of the UK's freight container
traffic, blamed the busy pre-Christmas period and haulage shortages.

 

However, it said the situation has been improving over the last few days.

 

Shipping giant Maersk told the BBC it is re-routing some of its biggest
ships away from the port.

 

The Financial Times first reported on Tuesday that Maersk was re-routing
ships away from Felixstowe to other European ports, where smaller vessels
will be used for UK deliveries.

 

Lars Mikael Jensen, head of global ocean network at Maersk, told BBC Radio 5
Live's Drive programme that some of its largest 20,000-container ships were
waiting outside Felixstowe for between four to seven days.

 

"We've taken those measures because we saw, because of the big ships, there
is a limit to how many berths they can call in Felixstowe, and because its
slower, it took longer to handle every ship," he said.

 

"Instead of wasting time waiting, we progressed to the next stop, and
arranged that the boxes are relayed from that port rather than wait for a
week and then discharge."

 

Problems at Felixstowe come as retailers and other groups warn of mounting
concern about stocks in the run-up to Christmas trading.

 

The port has blamed several factors for the build-up of shipping containers,
including the busy pre-Christmas peak, haulage shortages, poor vessel
scheduling, and the impact of the pandemic.

 

On top of this, there are a high number of empty containers currently
sitting at the port. Felixstowe said it is asking shipping lines to remove
them as quickly as possible.

 

"The vast majority of import containers are cleared for collection within
minutes of arriving and there are over 1,000 unused haulier bookings most
days," the port stressed.

 

"However, the situation is improving and there is more spare space for
import containers this week, than at any time since the beginning of July,
when supply chain impacts first started to bite."

 

Driver shortage

Industry bodies estimate there is a shortage of about 100,000 drivers with
several sectors from retailers to domestic refuse collection affected. The
government recently drafted in military personnel to help deliver fuel and
to issue emergency temporary visa to foreign drivers.

 

The shortage has been caused by several factors, including European drivers
who went home during the pandemic, Brexit, tax changes and a backlog of HGV
driver tests.

 

Tim Morris, head of the Major Ports Group, which represents port operators,
said the industry had been had been hit by a whole host of issues, including
Brexit border changes, global demand for goods travelling by sea, and the
pandemic.

 

"It has not been easy and there have been times of real stress on the ports
system," he said. "Ports have taken significant action to respond to the
challenges and build resilience."

 

The problem is not just confined to the UK. Ports across the world have also
suffered significant delays. Retailers have highlighted particular issues in
China and east Asia, where pandemic restrictions and poor weather conditions
have affected shipping.

 

Sarah Treseder, chief executive of the trade group UK Chamber of Shipping,
said there are reports of dozens of ships forced to wait outside ports in
America and Asia.

 

"We anticipate the disruption will continue while the underlying market
volatility stabilises," she said.-BBC

 

 

 

Nations must be 'absolutely vigilant' about inflation, says IMF

The economic recovery has weakened in most rich nations due to the impact of
the Delta variant of coronavirus, the International Monetary Fund (IMF)
says.

 

It also told the BBC inflation would "stay elevated" for the next few months
in countries like the UK and US and central banks needed to be vigilant.

 

It cut its 2021 growth forecasts for advanced economies - in particular the
US, Japan and Germany - but said most would grow strongly next year.

 

But it said poorer ones may fall back.

 

Separately, the fund voted to keep Kristalina Georgieva as its head after
she was engulfed in a data rigging scandal.

 

Ms Georgieva had vehemently denied claims she pressured staff to alter data
in favour of China when she was head of the World Bank.

 

 

Risks increase

The global economy contracted sharply in 2020, but rebounded strongly in the
first half of this year as countries unlocked.

 

However, in its latest World Economic Outlook, the IMF said "momentum had
weakened" since then as the highly transmissible Delta variant of
coronavirus stopped "a full return" to normality.

 

IMF chief economist Gita Gopinath said one of the biggest problems was high
inflation, particularly in the UK and US where it is running at 3.2% and
5.3% respectively.

 

This was partly due to a "mismatch between demand and supply", but also in
the case of the UK soaring gas prices.

 

She said inflation was likely to stabilise in most placed by mid 2022,
although it would take until 2023 in the UK. However, she central banks
"should absolutely be vigilant about what's happening".

 

Ms Golpinath also blamed the slowdown on continued health risks and supply
chain disruption, warning that "risks to economic prospects have increased".

 

Slower growth

The IMF cut its projection for global growth in 2021 only marginally to
5.9%, but said it masked large downgrades for some rich countries.

 

Notably it expects the world's largest economy, the US, to grow by only 6%
this year, down from the 7% the fund forecast in July .

It said Japan and Germany, the third and fourth largest, would expand by
2.4% and 3.1% respectively - down from 2.8% and 3.6%.

The UK's economy is forecast to grow by 6.8% this year, down from the
previous forecast of 7%.

 

However, the IMF expects most advanced economies to return their
pre-pandemic growth trends next year as supply chain issues ease, and to
exceed it by about 1% in 2024. By contrast, it said emerging and developing
economies (excluding China) could fall back and remain 5.5% below their
pre-pandemic forecast by 2024.

 

"These divergences are a consequence of the 'great vaccine divide' and large
disparities in policy support," Ms Gopinath said.

 

"While over 60% of the population in advanced economies are fully vaccinated
and some are now receiving booster shots, about 96% of the population in
low-income countries remain unvaccinated."

 

The hit to these countries' living standards would be "much higher" now, she
told the BBC.

 

On fiscal policy, the IMF said countries would have to tread fine between
controlling inflation and giving their economies enough stimulus to recover.

 

It said that debt in many countries was at record levels due to emergency
pandemic spending, and employment remained significantly below pre-pandemic
levels.

 

The post lockdown recovery is getting messy. That is the message from the
IMF's twice yearly review of the world economy.

 

"Longer than expected" supply disruptions are feeding into inflation, and
led to downgrades to growth this year for the US and UK. The biggest impact
though has been felt in developing economies where a lack of vaccinations,
and exposure to rising commodity and food prices has hit prospects.

 

While global inflationary pressures should abate in general in the middle of
next year, the IMF groups the UK alongside the US and some emerging
economies as places where there are "upside risks" from rising prices.

 

The biggest risk is, of course, a resurgence of Covid variants, especially
in countries with slow vaccination progress. The UK's vaccine rollout
success is singled out in contributing to a rebound in the economy.

 

After a sharper downgrade to 2021 prospects for the US than UK, the PM and
chancellor will be able to claim the IMF is predicting Britain has the
highest growth in the G7 this year.

 

This should be taken with a pinch of salt. Certainly ground that was lost is
being made up, but a bigger fall than any other G7 nation in 2020, because
of having suffered the worst pandemic first wave, makes a reopening of the
economy appear like a boom. Argentina is growing even more than the UK, but
it also lost just under a tenth of the value of its economy last year.

 

But the big picture is now supply problems and price rises. The problem is
that it makes central banks, including the Bank of England, more likely to
raise interest rates more quickly.

 

Ms Georgieva's future as IMF managing director had been in doubt following a
damning report prepared by the law firm WilmerHale for the World Bank's
board about data irregularities in the bank's now-cancelled "Doing Business"
report.

 

It alleged that Ms Georgieva and other senior officials applied "undue
pressure" on bank staff in 2017 to make changes to boost China's ranking in
the report. This was at a time when the bank was seeking Beijing's support
for a major capital increase.

 

Ms Georgieva had won the support of France and other European governments
last week, but US and Japanese officials pushed for a more thorough review
of the allegations, according to reports.

 

On Monday, US Treasury Secretary Janet Yellen said the report raised
"legitimate" concerns, but "absent further direct evidence" there was no
basis for a change of leadership at the IMF.

 

Ms Georgieva said: "This has obviously been a difficult episode for me
personally. However, I want to express my unyielding support for the
independence and integrity of institutions such as the World Bank and IMF;
and my respect for all those committed to protecting the values on which
these organisations are founded."-BBC

 

 

 

Amazon drivers look to sue for compensation over rights

A law firm is seeking to launch a group action against Amazon over employee
rights for delivery drivers.

 

Leigh Day is claiming drivers hired via third party delivery companies to
make deliveries for the online giant should be given rights enjoyed by
employees.

 

The drivers are classed as being self-employed, meaning they are not
entitled to minimum wage and holiday pay.

 

Amazon said it was committed to ensuring drivers were fairly paid by the
delivery companies they work with.

 

Drivers making deliveries on behalf of Amazon for its "Delivery Service
Partners" are not entitled to National Minimum Wage or an employment
contract, Leigh Day said.

 

The law firm says it has already begun legal action on behalf of two drivers
and is seeking others to join a group action.

 

Leigh Day, which brought, and won, a landmark case on behalf of Uber drivers
for workers' rights in February, claims at least three thousand drivers
could potentially be owed more than a hundred million pounds in
compensation.

 

It believes that because Amazon tells drivers how they should work, and how
they fit into the business, they should have more rights.

 

The law firm claims drivers are given estimated timings between deliveries
via an app which they have to meet. However, according to Amazon, the
routing app provides guidance and it is up to drivers whether to follow the
suggested route.

 

Kate Robinson, a Leigh Day employment solicitor, said: "It appears that
Amazon is short-changing drivers making deliveries on their behalf.

 

"Drivers delivering for Amazon have to work set shifts and book time off,
yet Amazon claim they are self-employed."

 

She added that that millions of pounds of compensation would be "a drop in
the ocean" to Amazon.

 

"For drivers on the other hand, earning at least National Minimum Wage,
getting holiday pay and being under a proper employment contract could be
life-changing," she added.

 

Ms Robinson stressed that it was "time for Amazon to stop putting profit
above people".

 

Leigh Day is bringing similar claims against Uber, Addison Lee, delivery
company Stuart and used vehicle marketplace BCA.

 

The law firm has been pursuing an equal pay claim on behalf of thousands of
Asda staff. It is also representing clients from Sainsbury's, Tesco,
Morrisons and the Co-op.

 

Amazon capitalised on a surge in demand for online shopping during the Covid
pandemic, with sales rising 50% to £20.63bn in 2020.-BBC

 

 

 

 

Festering Evergrande contagion worries push China spreads to record

(Reuters) - Worries over possible spiralling effects of a debt crisis at
developer China Evergrande Group (3333.HK) drove Chinese high-yield spreads
to record highs on Wednesday, days after the company missed another dollar
bond deadline.

 

The company, which has more than $300 billion in liabilities, on Monday
missed its third round of interest payments on its dollar bonds in three
weeks even as other firms warned of defaults.

 

In the clearest sign yet of global investors' worries of spreading debt
contagion, the option-adjusted spread on the ICE BofA Asian Dollar High
Yield Corporate China Issuers Index (.MERACYC) surged to a fresh all-time
high of 2,337 basis points on Tuesday evening U.S. time, above a previous
top of 2,069 basis points on Friday.

 

Investment grade spreads also jumped to their widest in more than two
months. (.MERACCG)

 

"We see a risk that a disorderly correction in the property market could
cause sharp price declines, hitting the personal wealth of homeowners," Kim
Eng Tan, a credit analyst at S&P Ratings, said in a report.

 

"Such an event could also contribute to large-scale losses by investors in
wealth management products, and the contractors and service firms that
support the developers."

 

Evergrande did not pay nearly $150 million worth of coupons on three bonds
due on Monday, following two other missed payments in September.

 

While the company has not technically defaulted on those payments, which
have 30-day grace periods, investors say they are expecting a long and
drawn-out debt restructuring process. read more

 

Chinese property companies' bonds continued to fall on Wednesday, comprising
seven of the top 10 losers among Shanghai-traded corporate bonds.

 

Bonds issued by developers including Shanghai Shimao Co Ltd (600823.SS)China
Aoyuan Group (3883.HK) and Country Garden Properties Group fell between 1.6%
and 7.4%, according to exchange data.

 

Dollar bonds also fell, although traders said limited market liquidity
following earlier routs meant prices were only indicative, with tradeable
prices possibly 10-20 points lower than screen prices.

 

Marketaxess quoted a Kaisa Group Holdings (1638.HK) June 2026 bond as
falling 0.9% to 41.125 cents. Its yield has risen to around 40%.

 

In equity markets, a sub-index tracking A-shares of property firms
(.CSI000952) fell 0.7% against a 1.2% rise in the blue-chip CSI300 index
(.CSI300).

 

Markets in Hong Kong were closed on Wednesday due to a typhoon affecting the
city.

 

WALL OF DEBT

 

Evergrande's main unit, Hengda Real Estate Group Co, faces a 121.8 million
yuan onshore bond coupon payment on Oct. 19 and Evergrande has another
$14.25 million dollar bond coupon due on Oct. 30. read more

 

Debt pressures extend far beyond Evergrande. Chinese property developers
have $555.88 million worth of high-yield dollar bond coupons due this month,
and nearly $1.6 billion due before year-end, and Refinitiv data shows at
least $92.3 billion worth of property developers' bonds maturing next year
read more

 

Evergrande's mid-sized rival Fantasia (1777.HK) has also already missed a
payment and Modern Land (1107.HK) and Sinic Holdings (2103.HK) are trying to
delay payment deadlines that would still most likely be classed as a default
by the main rating agencies.

 

"These stories have challenged the notion that Evergrande is one of a kind,"
analysts at Capital Economics wrote in a note.

 

While China's policymakers will likely be able to avoid a "doomsday
scenario", the overextended property sector will continue to weigh on the
world's second-largest economy, they said.

 

"Even following an orderly restructuring of the worst-affected developers
with minimal contagion to the financial system, construction activity would
still almost inevitably slow much further."

 

The IMF said on Tuesday that China has the ability to address the issues
linked to Evergrande's indebtedness, but warned that an escalation of the
situation could lead to the emergence of broader financial stress. read more

 

The $5 trillion Chinese property sector, accounts for around a quarter of
the Chinese economy by some metrics and is often a major factor in Beijing
policymaking.

 

The Thomson Reuters Trust Principles.

 

 

 

Asian shares edgy amid inflation fears, dollar at one-year high

(Reuters) - Asian shares were on edge on Wednesday as worries about soaring
power prices fuelling inflation weighed on sentiment and drove expectations
the United States would taper its emergency bond buying programme, holding
the dollar at a one-year high.

 

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS)
rose 0.1% in early trading, steadying after falling over 1% a day earlier,
in what was its worst daily performance in three weeks.

 

Moves were muted in most markets. Chinese blue chips (.CSI300) were flat,
Australia (.AXJO) eeked out a 0.06% gain, while Japan's Nikkei (.N225) shed
0.2%.

 

Hong Kong's stock market was closed in the morning because of a typhoon.

 

Also contributing to the uneasy mood, investors are waiting for a raft of
data releases due to be published Wednesday, including Chinese trade
figures, U.S. consumer price inflation data, and minutes of the U.S. Federal
Reserve's September policy meeting.

 

The looming start of company earnings season also deterred some investors
from placing large bets.

 

"This week, inflation is overriding pretty much everything else, because
that pushes Fed expectations one way or the other and that's just so
dominant," said Stefan Hofer, chief investment strategist for LGT in Asia
Pacific.

 

"This earnings season is also critical because in the previous one, earnings
especially in the U.S., were very strong, partly because of the base effect.
The third quarter may be a little more standard," he added.

 

The U.S. Federal Reserve is inching closer to starting to taper its pandemic
relief massive bond purchase programme, a decision that is complicated by
growing fears around the world that rising energy costs will stoke inflation
while also curtailing the economic recovery.

 

Oil prices are currently near multi-year highs, but were steadier in Asian
morning trading.

 

Brent crude fell 0.29% to $83.18 a barrel, just off Monday's three-year high
of $84.6, while U.S. crude shed 0.2% to $80.48 off Monday's seven-year high
of $82.18.

 

Despite growing inflation worries, there is growing optimism about the state
of the economic recovery. Three U.S. Federal Reserve policymakers on Tuesday
said the U.S. economy has healed enough for the central bank to begin to
withdraw its crisis-era support. read more

 

As a result, shares slipped on Wall Street overnight. The Dow Jones
Industrial Average (.DJI) fell 0.34%, the S&P 500 (.SPX) lost 0.24%, and the
Nasdaq Composite (.IXIC) dropped 0.14%.

 

The liklihood tapering also meant the dollar was strong, sitting just below
a one-year high versus other majors hit the previous day.

 

The dollar index was last at 94.413, just off just Tuesday's high of 94.563,
the highest since September 2020.

 

It was particularly strong against the yen with one dollar buying 113.39
yen, in sight of Monday's near three year low. As Japan buys the bulk of its
oil from overseas, a week yen means it is struggling even more with the high
prices.

 

Gold was steady ahead of the data from the U.S. with the spot price up 0.04%
to $1,760 an ounce, in the middle of this month's range.

 

The Thomson Reuters Trust Principles.

 

 

 

China's Sept exports surprisingly robust despite power crunch

(Reuters) - China's export growth unexpectedly accelerated in September, as
still solid global demand offset some of the pressures on factories from
power shortages, supply bottlenecks and a resurgence of domestic COVID-19
cases.

 

The world's second-largest economy has staged an impressive rebound from the
pandemic but there are signs the recovery is losing steam. Resilient exports
could provide a buffer against growing headwinds including weakening factory
activity, persistently soft consumption and a slowing property sector.

 

Outbound shipments in September jumped 28.1% from a year earlier, up from a
25.6% gain in August. Analysts polled by Reuters had forecast growth would
ease to 21%.

 

"Exports have continued to outperform and accelerate, even after omitting
the impact of base effects," said Erin Xin, Greater China economist at HSBC,
adding that earlier shipments of holiday consumer products in light of
global supply chain disruptions may be behind the continued strength in
exports.

 

Other analysts said power rationing in September may not have affected
exports yet, but could constrain production and inflate costs for Chinese
manufacturers in the months to come.

 

Power shortages caused by a transition to clean energy, strong industrial
demand and high commodity prices, have halted production at numerous
factories including many supplying firms such as Apple (AAPL.O) and Tesla
(TSLA.O) since late September.

 

Factories in eastern provinces of Guangdong and Zhejiang, both major export
powerhouse, have been asked to stagger their production throughout the week,
as many owners complain about the chaos the curbs have brought to work
schedules.

 

Previously, factories could operate at night but now the ban is 24 hours on
days of rationing, said King Lau, who helps manage a metal-coating factory
in the export city of Dongguan. The factory was asked to stop using
government electricity on three working days this week.

 

However, Louis Kuijs, head of Asia economics at Oxford Economics is
optimistic the export outlook in the coming quarters remains solid, despite
near-term headwinds.

 

"We generally expect these disruptions to ease over the coming months, as we
expect senior policymakers to stress growth and to call for the pursuit of
climate targets on a more measured timeline."

 

"Further out, we think exports should be underpinned by the ongoing global
economic recovery and a gradual easing of global supply-chain disruptions
next year."

 

Recent data has pointed to a slowdown in production activity. China's
manufacturing PMI unexpectedly shrank in September as industrial firms
battled with rising costs and electricity rationing. read more

 

Furthermore, the property sector, a key driver of growth, is reeling from
the increasing defaults of Chinese developers, with real estate sales
tumbling and new construction starts slowing.

 

IMPORTS SLOW

 

China's September imports rose 17.6%, lagging an expected 20% gain in a
Reuters poll and 33.1% growth the previous month.

 

"The breakdown showed a broad-based decline across all good types, though it
was particularly pronounced for inbound shipments of semiconductors," said
Julian Evans-Pritchard, senior China economist at Capital Economics.

 

"Lower import volumes of industrial metals add to evidence that
environmental curbs and cooling construction activity are weighing on heavy
industry."

 

However, China's energy demand is rapidly rising.

 

The volume of coal imports in September rose to their highest this year as
power plants scrambled for fuel to boost electricity generation to ease the
power crunch and replenish inventories ahead of the winter heating season.

 

Natural gas imports in September also rose to their highest since January
this year.

 

China posted a trade surplus of $66.76 billion in September, versus the
poll's forecast for a $46.8 billion surplus and $58.34 billion surplus in
August.

 

Many analysts are expecting the central bank to inject more stimulus by
cutting the amount of cash banks must hold as reserves later this year to
help small and medium-sized enterprises.

 

China's trade surplus with the United States rose to $42 billion, Reuters
calculations based on the customs data showed, up from $37.68 billion in
August.

 

The Thomson Reuters Trust Principles.

 

 

 

Nestle revamps geographic structure, makes new board appointments

(Reuters) - Nestle (NESN.S) is overhauling its geographic structure, the
world's largest food company said on Wednesday, creating new zones for North
America and for Greater China.

 

The maker of Nescafe instant coffee and KitKat chocolate bars also said it
was changing its executive board to align with the new structure, which
takes effect from Jan. 1 2022.

 

Company veteran Chris Johnson, the current head of Nestle's Asia, Oceania
and sub-Saharan Africa zone, will retire from the Swiss company's executive
board and be replaced by Remy Ejel, current head of Nestle's Middle East and
North Africa business.

 

Steve Presley, current Chairman and CEO Nestlé USA, will join the Executive
Board as CEO Zone North America. David Zhang, current CEO of Totole,
Nestle's food seasoning business, and Business Executive Officer for Food in
Greater China, will also join the executive board as the head of the Greater
China business, Nestle said.

 

The Thomson Reuters Trust Principles.

 

 

 

Credit Suisse waives fees for clients hit by Greensill funds collapse

(Reuters) - Crisis-ridden Credit Suisse (CSGN.S) is going on the offensive
under new Chairman Antonio Horta-Osorio by providing free services for
investors in collapsed supply chain finance funds linked to Greensill, a
person familiar with the situation told Reuters.

 

"This is a gesture of goodwill," the insider said.

 

Switzerland's second-biggest bank plans to refund fees on most products and
services to clients on a quarterly basis, the person said. This would cover
standard brokerage fees as well as discretionary mandate fees, investment
advisory fees and banking services.

 

Fund of funds from other providers, for example, are excluded from the fee
waiver. It was not yet clear how long the offer will last or how much it
will ultimately cost.

 

The bank's $10 billion in funds linked to Greensill imploded in March when
insurance cover lapsed, pushing the financing group into insolvency. read
more

 

Credit Suisse has been working with advisers to help recoup the funds, some
$7.0 billion of which had been recovered by the end of September. read more

 

Many clients who were sold the Greensill funds as products with a manageable
risk reacted angrily, and some have taken legal action. Analysts have
estimated the possible legal costs at $2 billion.

 

"Credit Suisse acknowledges that this has been a difficult period for
investors in the Supply Chain Finance funds. We continue to make good
progress on recovering cash both from obligors and via insurance claims;
however, recovery from the focus areas will take time to achieve," the bank
said.

 

"We have therefore also been actively engaging with our clients in recent
months to explore possible measures that would improve their situation. We
have taken their feedback on board, explored the viability of a number of
scenarios and, starting with clients in Switzerland, we are now able to
grant special conditions as a gesture of our commitment to these important
relationships," it added in a statement.

 

"FREE OPTION"

 

The bank is launching the fee waiver programme on Wednesday for clients
whose accounts are booked in Switzerland, the source said. The offer will
then be broadened out to other regions. The programme will cover the
Switzerland, Asia-Pacific and International Wealth Management divisions for
now.

 

Management fees on the Greensill funds themselves have already been waived
since March.

 

Clients participating in the programme would not have to forego legal
action, but would have to agree that any gain from legal action will be
reduced by the amount of the reimbursement received.

 

"Essentially, this is a free option," the source said.

 

Customers who had already initiated legal proceedings were excluded from the
programme.

 

Reuters reported in March that the bank was considering compensating
customers hit by the funds' collapse given the reputational damage and
possible lawsuits. The funds' shares were held by around 1,000 professional
investors and super-rich customers among the bank's core clientele. read
more

 

But the bank refrained from directly compensating clients for fear of
setting a precedent.

 

The bank has informed Swiss watchdog FINMA about the plan to waive the fees
for clients.

 

FINMA initiated formal proceedings against Credit Suisse over Greensill in
March. Police also searched the bank's offices and confiscated documents
last month in a probe the bank said was not directed against Credit Suisse.
read more

 

Credit Suisse has commissioned its own investigation into the Greensill
disaster. It is not known when the report will be published.

 

A report in July on a second debacle, the collapse of investment fund
Archegos Capital that cost the bank $5.5 billion, was scathing. read more

 

Horta-Osorio wants to announce by year's end what impact the two incidents
will have on its strategy and structure.

 

The Thomson Reuters Trust Principles.

 

 

Nigeria: Turning Kogi Into an Investment Destination

By Tackling Insecurity, As Well As Bridging the Education, Infrastructural,
Health and Agricultural Deficit in Kogi, Chiemelie Ezeobi Reports That
Governor Yahaya Bello Is Bent On Making the State a Safe Haven for Settlers
and Investors, While Connecting a Bridge Between the North and Southern
Regions

It would be safe to say that in line with his New Direction Blueprint for
Kogi State, Governor Yahaya Bello is bent on charting the roadmap for
proportional and accelerated development of the state. This blueprint was
mapped out upon assumption of office to chart the business of the day and
drive holistic reformation and regeneration of all sectors of the state.

 

This blueprint cuts across sectors like education, security, infrastructure,
health, agriculture, youth and women empowerment, environment, civil service
and even the economy.

 

According to Kogi State Commissioner for Information and Communications,
Kingsley Femi Fanwo, this blueprint has recorded giant strides for the
Yahaya Bello Administration, the development plans of the state and has
boosted the state as the investment destination of Nigeria.

Quality over Quantity

 

Known in many quarters as a man of standards, the governor has on many
occasions asked for an upgrade from contractors given his non-satisfaction
with works done. For him, it's quality over quantity any day.

 

Recently, a video surfaced on Instagram, a microblogging platform, where the
governor was livid at the substandard job done by a Chinese firm at the
State Specialist Hospital. The governor kept reiterating that he is a man of
standards so would not accept any shoddy job. As shocking it might seem to
Nigerians that a governor would condemn a contract done, for the Kogi State
Commissioner for Information and Communications, Kingsley Femi Fanwo, it was
not surprising to them as the governor has made it a lifestyle you accept
nothing but the best.

Bringing THISDAY up to speed on what happened Fanwo said: "Elected Chief
Executives should check their projects. It is dangerous to wait until
contractors foist death traps on them. Governance is about presence. It is
about mobility, both physically and mentally. No contractor will want to toy
with the will of the Governor to give quality projects to the state.

 

"Also, there is what we call the GYB Signature in the state. When you look
at the Revenue House, Ministry of Transport, our roads in Olamaboro, Omala,
Ankpa, Okene, Kabba and other places; our Rice Mill which is the best in the
country and many other projects, you will agree with me that GYB is a man of
standards. He is building a monumental legacy in the state.

 

"You saw a governor who openly challenged a contractor to a transparency
test in public. He doesn't bring contractors and would never condone
corruption. He is also always putting all of us on our toes. This is what
21st century leadership is all about. I can also inform you that the
governor set up a committee to look into the project and work with the
contractor to deliver a project that will match the GYB Signature. This is
how to protect the interest of the people you lead. This is the state GYB is
building."

Infrastructural Development

 

On infrastructural development, Fanwo noted that "It is on record that no
administration in the history of the state has done anything close to what
Governor Yahaya Bello has done in Kogi State. From roads to electricity and
water, he has sparked a revolution never heard of in the history Kogi State.
He concentrated on fixing roads in the rural areas and for the first time,
the rural people felt the impact of good governance.

 

"If you check his results in the 2019 election, you will discover that he
won over 80 per cent of rural areas. It is not just an election, but a vote
of confidence from the rural people who were hitherto neglected by the
previous administrations. Yahaya Bello chose to avoid the temptation of
concentrating on the capital city and other major towns in the State.

 

"But we are not running a Government of sycophantic ideology. It is not just
about showing the beautiful roads we have done in the rural areas. We still
go to them to see those that need attention. My job as the Chief Information
Officer of government is not just to tell the people what the government is
doing, but also to go round to feel the pulse of the people and report same
to government.

 

"He told me when he appointed me to inform him about what is good and what
is bad. He wants to know how his people are faring. That is the strength of
his administration. That is why he has done so much. He has the right
information. You could see the enthusiasm of the people yesterday. It means
they trust their governor. No government has been more attached to the
grassroots in the history of Kogi like that of Yahaya Bello. He is doing
more already and will continue to do more."

 

On the state of the flyover in the capital city Lokoja, Fanwo went down
memory lane. "I remember when the Governor announced he would be doing it
and many people on some very funny social media platforms started expressing
pessimism. They never believed it was possible because a previous
administration had toyed with their intelligence.

 

"But as states were in the economic mess of COVID-19, the magical GYB
released billions for the project. Even when they started the project, some
opposition elements said we were digging borehole on the road. Today, our
results have silenced the doubts. The project is going steady and
fantastically. I was there to see it last week and was so impressed by the
quality and pace of the work. When completed, it will be the first by any
administration in the state. Our people are very happy that we are doing
such a massive project. It will solve the traffic problem in one of the
fastest growing city in the world."

 

Touting Lokoja as one of the fasted growing cities in the world, Fanwo said
a lot of factors are responsible. "We are the safest state in Nigeria today.
Many are migrating to that nodal city to be safe. We are also bordering 10
states. So we are the centre of the nation. Three, our policies and
opportunities have enticed many investors into the state with big industries
springing up. Such population explosion has its positives and negatives. We
are dealing with the challenges that come with it by expanding our
infrastructure to cope with the explosion".

 

Carving a Niche in Rice Milling

 

Fanwo further posited that in terms of agriculture, the governor had lived
up to billing with many achievements to show for it like the Kogi Rice Mill,
which he said is the best in the country.

 

He said: "You can only call what is the best the best. The technology we
have there can not be matched by any in the country. And the Confluence Rice
produced there is the cleanest and most nutritious in Nigeria today. It is
also worthy of note to inform the public that the Mill is generating its own
power. This is a historic achievement. I know of a PDP leader who is a major
distributor of the rice and smiling to the bank. Development affects all,
irrespective of political or social leaning."

 

Health is Wealth

 

Ask a sick person the value of health and the cliche 'Health is Wealth'
becomes clearer. As regards the health sector, Fanwo described the governor
as a promise keeper. "While campaigning in 2015, he promised a revolution in
the education and health sectors specifically. When he became Governor, the
two immediately became parts of his five thematic areas. We don't want to
talk too much about the ongoing projects in the health sector. We want to
shock the nation. But as much as we want to keep it low, our people are
talking about these projects. It is understandable. They are excited. See
what we have turned the Idah Zonal Hospital to? Someone got there and was
asking if it was the same hospital he visited some years back. The hospital
has received the GYB Signature.

 

"The Reference Hospital, Okene is being built to take the front seat in
healthcare delivery in Nigeria. We are bringing facilities that are not in
any hospital in this country. Some of those facilities are already in the
state. We are also building hospitals in other places such as Kogi LGA and
Yagba East LGA, among others. I am proud to say Health is one area this
administration has done very well. The projects will be completed in the
next couple of months. We are also remodelling the State Specialist Hospital
to bring it to the level of the GYB Signature. By the time all of the
projects are completed, Kogi will become the Healthcare Centre of Nigeria",
he disclosed.

 

Bridging Education Deficit

 

While many states battle education deficit, Governor Bello seems to have
waved a magic wand over the sector. For Fanwo, this is no brainer given that
the governor understands the place of acquiring and applying education.

 

The commissioner added that "It is number one on our thematic area and we
are spending a quarter of our entire budget on education. It is already
yielding massive fruits as we now have the lowest rate of out-of-school
children in the entire Northern Nigeria. It means we are doing something
right. GYB initiated the Blue-Roof Revolution, constructing modern primary
school blocks that will return the glory of public schools. We have also
excellently implemented the home school feeding program as well as
remodelled our secondary and tertiary citadel of learning in the state.
Apart from this revolution, we also established a University of Science and
Technology in record time. We have never had it so good in our education.
Kogi is currently tailoring her technical education to producing graduates
who will create jobs rather than seek for jobs. Red collar and blue collar
job's are key to our economic renaissance."

 

On the need for another university given that the Prince Abubakar Audu
University, Anyigba, already exists, the commissioner said: "The Confluence
University of Science and Technology, Osara is not just another University,
but a specialized University. When you look at Kogi State, we are solid
minerals capital of Nigeria. Recently, the federal government decided to
establish the Gold Processing Hub for North-Central in Kogi State. We also
have the potentially largest Iron and Steel Company in Africa situated in
Kogi State.

 

"The biggest Cement Company in Africa is in Kogi State. We have Unicane and
other high profile companies in the State. You need a University that should
specialize in providing manpower for all of these companies. It was a smart
move by the GYB administration to do that. And the speed of completion is
historic. They are already in the second semester of their first year. We
are poised to produce the best Engineers and Scientists from that
university."

 

Beefing Security

 

Notwithstanding all these achievements, they would have all been for nothing
if the state was insecure. This is because security is an important and
critical element to the progress of any government as any valuable
development cannot be achieved without adequate security. For Kogi, this is
one ethos they hold dear as the state boasts of being the most secure state
despite being bordered by 10 states.

 

But it wasn't always like this as the state was once plagued with a host of
insecurity challenges which were inherited, prominent among these includes
terrorism, kidnapping, assassination, political agitation, pipeline
vandalism, herders/host community clashes, communal clashes and high rate of
cultism.

 

To tackle this, government found the need to restore peace and confidence to
the people by embarking on programs and policies as immediate priority and
strategic solutions.

 

But recently, the security of the state was recently breached when the
Correctional Centre was attacked, a breach the commissioner said they have
put measures in place to prevent any reoccurrence.

 

According to him, Governor Yahaya Bello might have been a soldier if he
didn't chose Accounting as he has a passion for security and so much
knowledge about that field. In light of that passion, he said the governor
has committed humongous resources in building an excellent security
architecture and a watertight security network for the state.

 

"A lot of crimes that would have been bloody had been prevented. And many
had been fought. We are the safest state in Nigeria. The breach was
unfortunate. But the Governor has personally coordinated efforts at ensuring
the perpetrators are apprehended. We won't make noise about security
operations. But we are satisfied with our response to the incident and how
we have rejigged our security architecture to remain the most peaceful state
in Nigeria. We as Nigerians must stop thinking insecurity is ethno-colored.
Every society has criminals. It is the responsibility of all of us to deal
with them," he stressed.

 

Future Plans

 

On any possible plans by the governor to contested for the 2023 presidency,
Fanwo said: " I don't know if he has made up his mind or when he will
communicate his response to the massive calls on him to come and lead our
nation. What I know is that he loves Nigeria and will do anything good to
make our nation the pride of Africa. He is a man who has shown capacity in
security, unity, cohesion and development.

 

"He is a man who is currently spending a quarter of the resources of his
state to educate his people. He is a man who can bring Ajaokuta Steel to
reality and stop the billions of dollars we spend annually in importing
steel. He is a man who has shown capacity to rebound our agriculture and
feed the nation. So we are not surprised that Nigerians are now calling on
him to come and be President.

 

"They are convinced he will do a good job. Those of us that have worked with
him over the years know how much he loves Nigeria and his capacity to make
Nigeria great. He also belongs to the demographic bracket that is staking a
huge claim on the Presidency in 2023. When he declares, the whole atmosphere
will change because he is a serial winner. I am sure Yahaya Bello is a man
PDP will never want to engage in a Presidential contest."

 

Also speaking on allegations about a smear campaign launched against the
governor, he said: "Some elements are uncomfortable with the rising profile
of the Governor and are bent on fighting dirty. We wont be drawn into their
roforofo fight but we found it expedient to let the public know their plans.
They started with the failed EFCC allegation. They later went to fabricate
figures and were begging bloggers to help them publish the falsehood to
tarnish the image of the governor. That has also failed.

 

"We know their plans to the 12th stage. Falsehood cannot stop the Governor.
Anyone who wants to compete with him should go and build the kind of
schools, hospitals, roads, water projects that he is building. The Governor
wasn't responsible for the political failure of his foes. And the GYB I know
won't be distracted. Kogi is blessed to have such a leader."-This Day.

 

 

Kenya: MPs Seek to Clip Petroleum CS Powers

MPs want Petroleum Cabinet Secretary denied a free hand in the usage of the
billions of shillings collected under the Petroleum Development Levy (PDL)
and review of a formula for calculating petroleum products prices.

 

The MPs through the Petroleum products' (Taxes and Levies) (Amendment) Bill,
2021 want the Petroleum Development Levy Act, 1991, which gives the Cabinet
Secretary discretionary powers to vary orders relating to PDL, amended so
that Parliament can ratify the usage of the fund.

 

"The committee (Finance) further observed that Section 3 of the Petroleum
Development Levy Act, 1991 gives the Cabinet Secretary discretionary powers
to vary orders relating to PDL. Given the financial impact this variation
may have, there is need to remove these discretionary powers from the
Cabinet Secretary," reads the committee report tabled in the house
yesterday.

"The House should be given an opportunity to debate the levies either to
approve or reject. This should not be left to the Committee on Delegated
Legislation to approve without reverting back to the House after scrutiny,"
further reads the report.

 

According to the report, the total revenue collected from the PDL amounted
to Sh25.88 billion in the 2020/2021 financial year.

 

Out of the amount, the National Treasury disbursed Sh1.6 billion to the
State Department for Petroleum for fuel stabilisation, Sh2.2 billion to the
Ministry of Energy and Sh18.1 billion to the State Department for
Infrastructure. The fund had a closing balance of Sh 3.4 billion at the end
of the 2020/2021 financial year.

"The disbursements to the State Department for Infrastructure and Ministry
of Energy were misapplied since they were not in line with the intended
purpose of the Petroleum Development Fund as per Section 4 of the PDL Fund
Act of 1991 and the PDL Order, 2020," reads the report.

 

In the amendments, the MPs want the fund managed by an advisory board
similar to the Roads Maintenance Levy and it be used for the stabilisation
of fuel prices and for matters relating to the development of common
facilities for distribution or testing oil products. The fund board shall
also establish a formula for distribution of money from the fund to oil
marketing companies.

 

The CS may by writing to the administrator request for a draw down from the
Petroleum Development Fund to stabilise local petroleum pump prices where he
deems it necessary.

 

MPs also want the Statutory Instruments Act, 2013 amended to require that
all regulations affecting taxes, levies and fees be approved or rejected by
the whole House and not the Committee on Delegated Legislation.

In this regard, the lawmakers have recommended the revocation of the Energy
(Petroleum Pricing) Regulations, 2010.

 

The committee also observed that the Petroleum Development Levy Act, 1991,
which put in place the PDL, does not clearly elaborate on the purpose of the
fund, the formula for determination of the Levy and its utilisation, a move
which MPs said is ambiguous and subject to abuse.

 

The MPs said the Petroleum Development Fund as contained in Section 4 of the
Act is not specific as to the purpose of the fund and only targets
development of common facilities for the distribution or testing of oil
products and for matters relating to the development of oil industry.

 

Through the Bill, MPs want all the current price regulations reviewed and
made Acts of Parliament so they are not prone to abuse by Epra during price
reviews.

 

The committee observed that landing costs account for more than 46 per cent,
taxes and levies account for about 40 per cent, gross margins account for
about 10 per cent, storage and distribution costs account for about 3 per
cent and demurrage costs account for less than one per cent of the price of
fuel. "Urgently review relevant laws so as to cause a reduction of the
retail prices of petroleum and petroleum products including the Value Added
Tax Act, the Income Tax Act, the Tax Procedures Act, the Miscellaneous Fees
and Levies Act among other statutes," reads the report.

 

The committee observed that Kenya has a strategic petroleum reserve that can
last the country for between seven to 10 days only.

 

This means a change in the international crude oil prices impacts
immediately on the fuel prices in the country. This can be addressed by the
draft Petroleum Consolidated Fund and Petroleum Strategic Stocks Regulations
which provide for the funding and management of the strategic petroleum
reserves in the country.-Nation.

 

 

Malawi: Stadium Construction Works Restart, Excites Mzimba

The resumption of construction works for the completion of Mzimba stadium
have excited several stakeholders including the youth in the district.

 

The development follows the Tonse Government's recent release of funds for
the exercise after the 12 thousand capacity facility had missed its 2019
completion deadline, a year after its construction started in 2018.

 

The delay has almost doubled the budgeted cost for its construction from the
initial K2.6 billion to K4.6 billion, according to the management consultant
for Manobec construction Limited, Darlington Matabwa.

 

District Sports Officer for Mzimba,' Ida Ng'ambi has expressed optimism the
resumption has revived hope towards face - lifting the district's sports
profile.

 

"When complete, renowned teams and sports personalities will be coming here.
That will encourage young people to take sports as a career, said Ng'ambi.

 

 

"When idle, young people engage in drug and substance abuse. We trust this
stadium will make a difference, adding one of the football players in the
district, Kingsley Jere.

 

Apart from face lifting the district, District Development Officer with the
M'mbelwa District Council, George Gopani, said the facility will also help
improve the Council's cash flow.

 

"Its construction will boost our revenue collection through various sports
activities which will be hosted at this venue," Gopani said.

 

Among other features, the structure has running tracks for athletes, VIP
stands and a provision for shops.

 

Meanwhile, Deputy Minister of Local Government, Halima Daudi, has reaffirmed
the current administration's resolve in ensuring that all stalled projects
are duly funded to completion.

 

"We are going to make sure that all projects that had stalled during the
previous administration are completed," she said.

 

Daudi has since warned that the law will take its course on all contractors
found indulging in acts of corruption, including inflating the costs of the
project material.

 

Read the original article on MBC.

 

 

 

 

 


 


 


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bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

 

 


 

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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