Major International Business Headlines Brief::: 16 October 2021

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Major International Business Headlines Brief::: 16 October 2021

 


 

 


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

 


 

 


ü  US heating bills set to surge as energy costs jump

ü  Virgin Galactic delays first commercial space flight

ü  Covid: US to lift travel ban for fully jabbed on 8 November

ü  Business insolvencies rise as government aid wanes

ü  Lorry driver shortage: Government to lift rules on foreign haulier
deliveries

ü  Apple worker says she was fired after leading movement against harassment

ü  Wall St Week Ahead Regional bank loan growth could hint at healthier
supply chains

ü  Chinese property executives ask regulators for 'appropriate loosening' of
restrictions - report

ü  Russia seeing record gas demand but still ready to boost EU supplies,
Novak says

ü  Evergrande CEO in Hong Kong for restructuring, asset sale talks, sources
say

ü  Italy's business lobby sees stronger economic growth, GDP up 6.1% in 2021

ü  Ethiopia: Special Attention to Ethiopia's Avocado Products to Penetrate
the Global Market

ü  Nigeria Inflation Slows for Sixth Straight Month

ü  Cameroon: Food Hero - Cameroon's Shrimp Entrepreneur

ü  Beverage Market Africa Continent is Regaining Power

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

US heating bills set to surge as energy costs jump

US heating bills are set to surge this winter as energy prices soar, the US
Energy Information Administration says.

 

About half of households use natural gas for heating and will see their
bills jump by 30% in October-March compared to last year, the EIA it said.

 

Those who use heating oil or propane - around 10% - could see their costs
jump by 54% and 43% respectively.

 

For the remainder that use electricity for heating, costs should rise by a
more modest 6%, it said.

 

Energy prices have soared globally, amid a shortage that has hit firms and
households in Europe and Asia.

 

The US has not seen the same chaos, but fuel costs have risen to multi-year
highs which is likely to hit household finances as the weather gets colder.

 

"As we have moved beyond what we expect to be the deepest part of the
pandemic-related economic downturn, growth in energy demand has generally
outpaced growth in supply," said Steve Nalley, acting administrator of the
Energy Information Administration (EIA).

 

"These dynamics are raising energy prices around the world."

 

Soaring gas prices

Natural gas is plentiful in the US, but prices have doubled this year from
pandemic-era lows in-part because the country failed to stockpile enough
last winter.

 

According to the EIA's baseline scenario, heating bills between October and
March for gas users will hit $746, a third more than the same winter period
last year.

 

But it said this would rise to a 50% increase if the winter was colder than
average, hitting cities such as Chicago which rely heavily on central
heating in colder months.

 

Why India is on the brink of a power crisis

It forecasts that households that use propane - mainly in the South, the
Northeast and Midwest United States- will spend $631 more on average for
heating this winter. Heating oil users could expect to pay $1,734 more ,it
added.

 

Again, prices in both cases would be considerably higher if it's a very cold
winter.

 

The cost of living in the US has risen sharply amid surging consumer demand,
supply chain bottlenecks and labour shortages.

 

US inflation is running at a 13-year high of 5.3%, and the prices of meat,
cars, clothing, gasoline and appliances have all gone up.

 

Some believe the US Federal Reserve will have to raise interest rates soon
to control prices, but the central bank has argued the trend will be
transitory.-BBC

 

 

 

Virgin Galactic delays first commercial space flight

Shares in Virgin Galactic dived as much as 20% on Friday after the space
tourism company said it was postponing its first commercial flight.

 

The trip was scheduled for the third quarter of 2022, but will be delayed
until the fourth as the firm conducts repairs and upgrades.

 

It also said it will not conduct a second planned test flight this year.

 

Virgin is in a race with Jeff Bezos' Blue Origin and Elon Musk's Space X to
start flying tourists into space.

 

In a statement the firm said a planned upgrade programme, aimed at enhancing
the durability of its ships, would begin a month later than planned.

 

It comes after routine tests revealed "a possible reduction in the strength
margins of certain materials" used on its VMS Eve and VSS Unity craft.

 

Virgin said this required further inspection but played down safety
concerns.

 

"While this new lab test data has had no impact on the vehicles, our test
flight protocols have clearly defined strength margins, and further analysis
will assess whether any additional work is required to keep them at or above
established levels," said company boss Michael Colglazier.

 

Space race heats up

The company, founded by British billionaire Richard Branson, said its next
test flight - Unity 23 - would now happen next summer. Commercial flights
will start after that.

 

Last month, the US Federal Aviation Administration lifted a no-fly order on
Virgin Galactic after a flight in July deviated from assigned airspace on
its descent.

 

The regulator had accused the company of not providing the necessary
information about the flight in which Mr Branson participated.

 

On Wednesday, Hollywood actor William Shatner became the oldest person to go
to space as he blasted off aboard the Blue Origin sub-orbital capsule
developed by billionaire Amazon founder Jeff Bezos.

 

Meanwhile, four amateur astronauts blasted off from Florida on their private
mission on one of Space X's Dragon spacecraft in September.-BBC

 

 

Covid: US to lift travel ban for fully jabbed on 8 November

The US has said that it will reopen its borders to fully vaccinated
travellers from 33 countries on 8 November.

 

Under new rules announced by the White House, vaccinated people who have had
a negative test in the 72 hours before travelling will be allowed to enter.

 

The move marks the end of the tough restrictions that have been imposed on
travellers since early last year.

 

"This policy is guided by public health, stringent and consistent," a White
House spokesman said.

 

The new rules will apply to Schengen countries - a group of 26 European
nations - as well as the UK, Brazil, China, India, Iran, Ireland, and South
Africa.

 

The current rules bar entry to most non-US citizens who have been in the UK,
China, India, South Africa, Iran, Brazil or a number of European countries
within the last 14 days.

 

However, the policy has caused controversy, as passengers from 150 other
countries, many of whom have struggled with high rates of Covid infection,
have continued to enter the US freely.

 

Officials announced that people who have been jabbed with one of the
vaccines that are approved by the US Food and Drug Administration (FDA) or
have been granted an Emergency Use Listing from the World Health
Organization (WHO) will qualify under the system.

 

The Emergency Use aspect will allow travellers who have received the
AstraZeneca jab, widely used in the UK, as well as China's Sinovac and
Sinopharm vaccines, to enter the country.

 

It was also confirmed that travellers will not be required to go into
quarantine upon entering the country.

 

The announcement was swiftly celebrated by would-be travellers across the
globe.

 

Among them was Kent resident Dan Johnson, who told the BBC he had been
unable to visit his father in the US before he died of cancer in March.

 

"I never got to say goodbye and hadn't seen him since 2019 due to the travel
restrictions," he said. "It's been the hardest thing in the world. Lifting
the ban feels much too late, but does mean that I can finally visit my
step-mum and help her sort dad's belongings."

 

Another UK resident, Kate Urquhart, said she would be travel to Los Angeles
to see the final concert of American rock band The Monkees' farewell tour in
November.

 

"I was almost resigned to not going," she said. "Today's announcement is
great news."

 

Friday's announcement sheds light on the changes first announced back in
September. Biden administration officials had initially said the new policy
would go into place in "early November," leaving many foreign nationals
unsure when to make or adjust their travel plans.

 

Virgin Atlantic CEO Shai Weiss welcomed the move and said it reflected the
success of the global vaccine rollout.

 

"The UK will now be able to strengthen ties with our most important economic
partner, the US, boosting trade and tourism as well as reuniting friends,
families and business colleagues," she said.

 

The US has lagged behind many other countries in removing its travel
restrictions, prompting friction with a number of its allies.

 

On Tuesday, US officials announced that restrictions at its land borders
with Canada and Mexico for fully vaccinated foreign nationals would also
end.

 

However, unvaccinated travellers will continue to be barred from entering at
land borders.-BBC

 

 

Business insolvencies rise as government aid wanes

The number of businesses that failed in England and Wales last month was the
largest since the Covid pandemic began.

 

Company insolvencies in September totalled 1,446, increasing from 1,349 in
August and 56% higher than the same month last year, data from the
Insolvency Service shows.

 

September saw many firms contend with rising energy and labour costs and the
tapering of Covid government support.

 

Some insolvency experts fear the number will rise further.

 

Energy companies Utility Point and PfP Energy, musical instrument maker
Roli, as well as chilled food delivery firm EVCL Chill all collapsed last
month.

 

More to go bust?

Claire Burden, a partner at professional services firm Tilney Smith &
Williamson, said the ongoing energy price rises will "reverberate into
additional sectors" and push more companies such as those in manufacturing
and consumer goods into financial strife.

 

"This will cause further failures when combined with existing pressures of
increased transport costs and supply issues," Ms Burden added.

 

The Bank of England earlier this month said one third of small businesses in
the UK are classed as "highly indebted", where their debt levels are more
than 10 times their cash balances.

 

Matt Richards, a restructuring and insolvencies partner at accountants
Azets, said he expected the upward trend of insolvencies to continue "now
that the government has withdrawn most of its corporate support measures".

 

"The additional pressures facing businesses today with higher inflation,
staff shortages, increasing energy prices and the need to repay
Covid-incurred debt, is likely to increase the number of insolvencies over
the next 12 months."

 

An HM Treasury spokesperson said the government had backed UK businesses
with £400bn of support, including through the Plan for Jobs scheme.

 

"It's working - two million fewer people are now expected to be out of work
than previously feared and the number of redundancies remains near a
seven-year low," they said.

 

"We're also unlocking investment through the £20bn a year super deduction,
the biggest two-year business tax cut in modern British history, while
£650bn of private and public infrastructure investment will support 425,000
jobs over the next four years."-BBC

 

 

 

Lorry driver shortage: Government to lift rules on foreign haulier
deliveries

The rules on the number of deliveries overseas lorry drivers can make in the
UK are set to be relaxed in a bid to tackle supply chain problems in the
run-up to Christmas.

 

Under the new plans, drivers will be able to make unlimited deliveries or
collections within a 14 day period.

 

Currently EU drivers can only make two pick-ups or drop-offs each week.

 

It is hoped the changes will happen by December - but UK drivers fear they
might lose work to cheaper EU rivals.

 

The UK's lorry driver shortage - due to a combination of Covid, Brexit and
other factors - has affected petrol stations, supermarkets and left
containers piled up at Felixstowe Port unable to be moved.

 

Retailers have also warned there could be shortages of items such as toys at
Christmas, with shoppers urged to buy gifts early.

 

Last month, the government announced it would grant up to 5,000 temporary
visas for HGV drivers from abroad - but so far only a fraction have been
issued.

 

And the first foreign drivers brought in on the visa scheme may not even
arrive for another month, sources have told BBC transport correspondent
Carrie Davies.

 

But now ministers are going further, and plan to make temporary changes to
cabotage rules, which govern how many jobs a haulier can make in a foreign
country.

 

It means foreign HGV drivers that come into the country laden with goods can
pick up and drop off items an unlimited number of times for two weeks before
they return home.

 

The changes still need to be approved after a one-week consultation - but if
passed they will come into force "towards the end of this year for up to six
months", according to the government.

 

It would mean thousands more HGV deliveries each month, the government said,
so more goods - especially food and items that come via ports - can get
delivered on schedule.

 

Transport Secretary Grant Shapps told BBC Breakfast: "Having some additional
capacity right now... it is a good idea. This is a quick way of doing it. It
doesn't require visas, it's just a common sense measure.

 

"It is one of very many things. I don't think it is going to undercut or
suppress the market."

 

Mr Shapps said problems with supply chains were a global issue.

 

He added: "It is very tight but our supply chain is pretty robust. They have
worked through coronavirus and they will work through this as well."

 

But the haulage industry said the measures would undercut British operators.

 

Rod McKenzie, from the Road Haulage Association, told BBC's Today programme:
"Well, I spoke to some of our members last night, and they were appalled.
'Ridiculous', 'pathetic', 'gobsmacked' were some of their more broadcastable
comments.

 

"The government has been talking about a high-wage, high-skill economy, and
not pulling the lever marked 'uncontrolled immigration', and to them this is
exactly what it looks like.

 

"Allowing overseas haulage companies and drivers to come over for up to six
months on a fortnightly basis to do unlimited work at low rates,
undercutting UK hauliers who
 are facing an acute driver shortage, rising
costs, staff wages.

 

"So this is about taking work from British operators and drivers and giving
it to Europeans who don't pay tax here and pay peanuts to their drivers.

 

"We don't want cabotage [the transportation of goods in one country by
operators from another] to sabotage our industry."

 

The Unite union has raised the prospect of possible industrial action in
protest at what it sees as poor pay and conditions in the industry.

 

"The treatment of drivers across the board has been nothing short of a
disgrace," said Unite general secretary Sharon Graham.

 

"As the prime minister said recently, the answer to the driver shortage is
better wages and improved conditions. This is what we demand.

 

"Now is the time for action not words. It's time for employers to pay
workers a proper rate for the job.

 

"Unite will be consulting its members before deciding on next steps,
including exploring the options for industrial action."

 

Survey findings about why there are driver shortages

Mr Shapps said the long-term answer to the supply chain issues "must be
developing a high-skill, high-wage economy here in the UK".

 

But talking about the latest measures, he said: "The temporary changes we're
consulting on to cabotage rules will also make sure foreign hauliers in the
UK can use their time effectively and get more goods moving in the supply
chain at a time of high demand."

 

According to France's finance minister, the UK is faring worse in the supply
chain crisis because it left the single market after Brexit.

 

"We are facing the same situation," said Bruno Le Maire at the G7 meeting in
Washington. "But the fact that we are a member of a very important single
market helps us facing these bottlenecks."

 

On Thursday, the government said it was also giving hundreds of foreign
abattoir workers temporary visas, to help fix the shortage of workers in
slaughterhouses.

 

The shortage of staff in abattoirs means pigs are not being killed fast
enough, and there is not enough space on farms so farmers are having to kill
them themselves.

 

Farmers have already destroyed 6,600 healthy pigs due to a backlog on farms,
the National Pig Association said.-BBC

 

 

 

Apple worker says she was fired after leading movement against harassment

(Reuters) - An Apple employee who led fellow workers in publicly sharing
instances of what they called harassment and discrimination at the company
said on Thursday that she had been fired.

 

Janneke Parrish, an Apple program manager, said the iPhone maker informed
her on Thursday that she had been terminated for deleting material on
company equipment while she was under investigation over the leaking of a
company town hall to media. She told Reuters she denies leaking.

 

Parrish said she deleted apps that contained details of her finances and
other personal information before handing her devices in to Apple as part of
the probe.

 

Parrish said she believes she was fired for her activism in the workplace.

 

"To me, this seems clearly retaliatory for the fact that I was speaking out
about abuses that have happened at my employer, pay equity and, generally,
about our workplace conditions," she said.

 

Apple said Friday it does not discuss specific employee matters.

 

Apple has recently experienced other examples of employee unrest. Last
month, two Apple employees told Reuters they had filed charges against the
company with the National Labor Relations Board. The workers accused Apple
of retaliation and halting discussion of pay among employees, among other
allegations.

 

Apple has said that it is "deeply committed to creating and maintaining a
positive and inclusive workplace" and that it takes "all concerns" from
employees seriously.

 

U.S. law protects the right of employees to openly discuss certain topics,
including working conditions, discrimination and equal pay.

 

Over the summer, current and former Apple employees began detailing on
social media what they said were experiences of harassment and
discrimination. Parrish and some colleagues began publishing the stories on
social media and a publishing platform in a weekly digest titled
'#AppleToo.'

 

Parrish said she was careful to respect company rules and never shared
information that she believed to be confidential. She said she continued to
publish the '#AppleToo' digest after coming under investigation at the end
of September.

 

"If anything, it's made the importance of that work clearer than ever, when
Apple's response to criticism is to start internal investigations into those
that it wants to see gone," she said. "It's easier for them to terminate
people than it is for them to actually listen."

 

The Thomson Reuters Trust Principles.

 

 

 

Wall St Week Ahead Regional bank loan growth could hint at healthier supply
chains

(Reuters) - If regional banks show signs of accelerating loan growth when
they report earnings in the week ahead, it could signal an easing of the
supply chain bottlenecks that have weighed down the U.S. economic recovery
from the pandemic, analysts and investors said.

 

Overall, small banks accounted for 63% of the approximately $520 billion in
loans through the federal Paycheck Protection Program launched in response
to the pandemic. The program allowed small businesses to take loans that
either could be forgiven or would have a 1% interest rate, according to the
U.S. Small Business Administration.

 

Increasing demands for new loans at higher interest rates could signal that
small businesses are securing inventory and expanding, said Dave Ellison, a
portfolio manager at Hennessy Funds.

 

"It seems like everybody else has benefited from the economy reopening but
the banks because you've seen very little loan growth" on account of the
Paycheck Protection Program, Ellison said. "The pandemic has
disproportionably hurt small businesses, and those are the customers of
regional banks," he said.

 

As of June 30th, small banks held 15% of total banking industry loans but an
outsized share of Paycheck Protection Program loans, holding 31%, according
to the Federal Deposit Insurance Corp.

 

Overall, commercial loan growth fell 12% in September from a year earlier
after bottoming out with a 16.3%% decline in annual loan growth in May,
according to data from the Federal Reserve and Oppenheimer. Yet rising
inventories at auto suppliers and retailers should bolster loan growth in
the year ahead, said Chris Kotowski, an analyst at Oppenheimer.

 

"It seems likely to us that the next significant move is up — not down — for
the simple reason that it can't possibly come down as much as it already
has," said Chris Kotowski, an analyst at Oppenheimer.


A healthy increase in new loans at regional banks would be a strong signal
that supply chain issues are moderating, said Steven Comery, an analyst at
Gabelli Funds.

 

"If clients can't get products to market because of the supply chain they
aren't going to be borrowing to build their inventory," he said. "If we see
signals that supply chain issues aren't going away then that's going to
impact earnings estimates through 2023."

 

The four largest U.S. banks reported mixed loan growth when reporting their
earnings results Oct. 14, with J&P Morgan said loans were up 5% compared to
the prior year while Bank of America and Wells Fargo reported declines.
L4N2R93KV

 

Companies including First Community Bancshares Inc (FCBC.O), First Midwest
Bancorp Inc (FMBI.O), and Zions Bancorp (ZION.O) are expected to report
earnings on Monday, while Fifth Third Bancorp O> and United Community Banks
Inc (UCBI.O) are among those expected to report on Tuesday.

 

On Wednesday, Oct. 13, shares of First Republic Bank (FRC.N) gained 1.5%
after the regional bank originated approximately $15 billion in new loans
and reported that its average Paycheck Protection Program loan balance was
down 39% over the quarter. Those gains in new loans will make it likely that
the bank will raise its guidance in the coming quarters, noted Casey Haire,
an analyst at Jefferies.

 

Concerns over loan growth by regional banks comes at a time when the
sector's shares are trading near record highs. Regional banks in the S&P 500
(.SPLRCBNKS) are up nearly 37% for the year to date and are just below the
high they reached on Oct. 8, according to Refinitiv data.

 

Despite those gains, regional banks continue to look attractive based on
valuations, Ellison said.

 

Regional banks in the S&P 500 trade at a forward price to earnings ratio of
13.5, well below the 21.2 of the broad S&P 500, according to Refinitiv data.
Valuations will likely rise alongside the yield of the benchmark 10-year
Treasury, which is used to set rates for loans including mortgages, Ellison
said.

 

"Valuation is not a problem for future gains," he said.

 

The Thomson Reuters Trust Principles.

 

 

 

Chinese property executives ask regulators for 'appropriate loosening' of
restrictions - report

(Reuters) - Representatives from 10 Chinese property companies met
government regulators to ask for an "appropriate loosening" on policy
restrictions, financial news outlet Yicai reported late on Friday.

 

In the meeting, senior executives urged authorities to loosen regulations
with the goals of stabilizing market expectations, providing support for
genuine home buyers rather than speculators and making adjustments in land
prices, Yicai reported, citing unnamed people in attendance.

 

The meeting was attended by senior executives from developers including
China Vanke Co Ltd (000002.SZ) and Sunac Holdings (1918.HK), along with the
Director of the Real Estate Department of the Ministry of Housing and
Urban-Rural Development and the Director of the China Real Estate
Association (CREA), Yicai reported.

 

A number of Chinese property firms are facing a liquidity crunch amid weak
demand and tightening regulations. Property firms have been affected by loan
caps imposed by the government in order to contain rampant borrowing.

 

The potential collapse of highly indebted real estate firms such as China
Evergrande Group (3333.HK) has rattled markets and raised concerns about
systemic risks to the broader economy.

 

The Thomson Reuters Trust Principles.

 

 

 

Russia seeing record gas demand but still ready to boost EU supplies, Novak
says

(Reuters) - Russian gas consumption is running at a record high but Moscow
is still ready to increase supplies to Europe should it receive such
requests, Deputy Prime Minister Alexander Novak said on Saturday.

 

European spot gas prices have surged by 800% this year as demand has
recovered after the coronavirus pandemic. Prices eased earlier this month
after Russia, Europe's key gas supplier, said it could deliver more, but
these supplies have yet to materialise.

 

"I want to underline that we in Russia have record high gas consumption
figures this year, which is also due to active economic recovery," Novak
said in an interview with the Rossiya 1 TV channel broadcast, according to
Russian news agencies.

 

Russia, whose gas production and exports to EU are already near record
highs, has said it needs to finish filling its own gas storage reserves
before it increases supplies to Europe's spot market. It plans to complete
this by end-October.

 

Novak did not say how large Russia's gas reserves were but estimated that
European underground facilities were short of around 25 billion cubic metres
of gas.

 

He insisted high domestic demand would not stop Russia offering more
supplies to Europe if it received such requests.

 

The Thomson Reuters Trust Principles.

 

 

 

Evergrande CEO in Hong Kong for restructuring, asset sale talks, sources say

(Reuters) - Evergrande Group's (3333.HK) chief executive is holding talks in
Hong Kong with investment banks and creditors over a possible restructuring
and asset sales, two people said, as the Chinese developer battles against
default on more than $300 billion in debts.

 

CEO Xia Haijun, a confidant of chairman Hui Ka Yan and who runs Evergrande's
day-to-day operations including financing, has been in Hong Kong, where the
property firm has a major presence, for more than two months, the two
sources told Reuters.

 

A third source said Xia was talking to banks and creditors in Hong Kong, but
did not say what was being discussed.

 

Shenzhen-headquartered Evergrande, which is reeling under more than $300
billion in liabilities, has left its offshore investors in the dark about
repayment plans after already missing three rounds of interest payments on
its dollar bonds.

 

Xia's talks with investment banks and creditors in Hong Kong has not
previously been reported.

 

One of the sources said Xia needed to communicate with foreign banks on loan
extensions and repayments. The source declined to disclose the identity of
the creditors that Xia had spoken to in recent days.

 

"Xia also needs to sort out how many off-balance sheet debts the group has
offshore, because many were underwritten at subsidiary levels and he himself
may not be even aware of (that)," he said. "Before that they cannot work on
restructuring and talk to bondholders."

 

Evergrande has been scrambling to divest some of its assets to raise cash -
efforts that have not yet yielded much success - as concerns have grown in
recent weeks about a possible collapse and the impact on global markets and
China's economy.

 

Chinese state-owned Yuexiu Property (0123.HK) has pulled out of a proposed
$1.7 billion deal to buy Evergrande's Hong Kong headquarters building over
worries about the developer's dire financial situation, Reuters reported on
Friday. read more

 

A Chinese central bank official said on Friday the spillover effect of
Evergrande's debt problems on the banking system was controllable and the
risk exposures of individual financial institutions were not big. read more

 

Evergrande and Xia did not respond to Reuters requests for comment.

 

The sources, who have direct knowledge of the development, declined to be
named due to the sensitivity of the matter.

 

PUBLIC APPEARANCE

 

Evergrande Chairman Hui has not appeared in public in recent weeks or
announced plans to address the group's woes, leaving investors wondering if
they would have to book losses when the 30-day grace periods end this month
for unpaid bond coupons.

 

Last month, the developer issued a statement saying Hui had urged company
executives to ensure the quality delivery of properties and redemption of
wealth management products.

 

Xia, who is also vice president of the board, joined the company in 2007 and
is responsible for Evergrande's capital operation and management, as well as
legal affairs and overseas affairs, according to the company's website.

 

He has been in Hong Kong since July, according to one of the sources. The
second source said Xia had been meeting Chinese investment banks in the city
to explore possible asset sales.

 

Evergrande, once China's top-selling developer, has said that it is looking
to dispose of stakes in assets including its services and electric vehicle
units to raise funds.

 

The developer is finalising details to sell 51% of its Evergrande Property
Services (6666.HK) unit to Hopson Development (0754.HK) for HK$20 billion
($2.57 billion). read more

 

Investment bank Moelis & Co and law firm Kirkland & Ellis, representing
bondholders who currently hold $5 billion worth of Evergrande nominal
offshore bonds, demanded last week more information and transparency from
Evergrande.

 

The developer said last month it had appointed Houlihan Lokey and Admiralty
Harbour Capital as joint financial advisers to examine its financial
options, as it warned of default risks amid plunging property sales. read
more

 

($1 = 7.7792 Hong Kong dollars)

 

 

 

Italy's business lobby sees stronger economic growth, GDP up 6.1% in 2021

(Reuters) - Italy's business lobby Confindustria said on Saturday the
country's growth this year would be more robust than expected, mainly due to
a more contained impact of the COVID-19 Delta variant and
stronger-than-expected economic indicators.

 

In a report, the association's research unit CSC forecast gross domestic
product (GDP) would rise 6.1% this year and 4.1% next year, going above
pre-pandemic levels in the first half of 2022.

 

In April the research unit had said Italy's GDP would be up 4.1% in 2021.

 

Its forecasts for this year are now just above the 6% expected by the
national unity government lead by Mario Draghi.

 

Last year the COVID-hit economy contracted by 8.9%, the steepest recession
in Italy's post-war history. The firm pick-up now in place is seen resulting
in lower-than-expected public deficit and debt ratios this year.

 

The CSC report cautioned that, starting from the last quarter of this year,
GDP growth would have a more "moderate profile".

 

It said that its estimates took into account Italy's multi-billion euro
recovery plan, partly funded by the European Union.

 

It added that, despite the "positive perspectives", the forecasts had
downside risks that were linked to the possibility of new COVID-19
restrictions, the lack of raw materials that could bog down production and
more structural inflation.

 

Confindustria President Carlo Bonomi said that recovery was well underway
but that it was important to "keep the guard up".

 

"Italy must go back to growing at a yearly pace of at least 1.5-2%, an
achievable goal, equal to the annual growth registered between 1997 and
2007," he said.

 

The Thomson Reuters Trust Principles.

 

 

 

Ethiopia: Special Attention to Ethiopia's Avocado Products to Penetrate the
Global Market

Ethiopian farmers in the regions of Amhara and Oromia are preparing to
export avocados to the international market. 447 farmers in the Amhara
region, as well as several others in the Oromia region, are prepared to
export high-quality avocados.

 

Nine agricultural clusters in the Amhara region will soon begin exporting
Hass (dark green and bumpy type) avocados cultivated on 200 hectares of
land, Ethiopia's Agricultural Transformation Agency (ATA) announced. The
Agency related that 447 farmers in North Mecha Woreda of West Gojjam Zone
are taking part in producing export-standard avocado produce.

 

The Agricultural Transformation Agency noted that 1,600 quintals of avocado
produce from 156 of the 337 farmers has already been collected, prepared,
weighed, and packed and made ready to be distributed for the international
market.

 

On the other hand, farmers in the Oromia region are also poised to export 16
tons of avocado produce to various countries.

Recently, the country carried out its first export of avocados by train from
Modjo Dry Port, under a pilot project forming part of the National Cool
Logistics Network. The 24-tonne refrigerated consignment, which marks a
major milestone in the development of a cool logistics corridor by sea, was
produced by dozens of farmers in the Koga area, south of Bahir Dar, and
packed by KogaVeg Agricultural Development.

 

After the 750km train journey, the fruit will be shipped from Djibouti to
Europe, taking around 20 days. Comparing with coffee, one can plant up to
2,600 coffee seedlings per hectare with output of 10 to 12 quintals per
hectare. But by planting 416 seedlings of avocado per hectare with up to 20
tons per hectare, Ethiopia can get more export earnings as compared to what
it is getting from one hectare of coffee.

 

Ethiopia's landscape and climate are conducive to a wide variety of fruits
and vegetables. The country is said to have a particularly eco-friendly
environment with enormous potentials to become the major producer and
exporter of fruits and vegetables. Different data shows that Ethiopia is
among the top 10 avocado growing countries.

Even now, avocados are becoming increasingly popular in Ethiopia, both among
producers and consumers. It has been shown to be effective in many areas and
is now widely available. It is benefiting in many ways in urban areas. The
avocado juice has become an important ingredient in the cosmetics industry,
especially when used in juices, salads alone or in combination with other
vegetables.

 

Various studies have been conducted by local and foreign experts to show
Ethiopia's suitability for avocado production and its overall potential.

 

The researcher published a study entitled "Ethiopia's Potential Role in the
Global Avocado Market" published in 2019. According to the study, worldwide
demand for avocados has doubled over the past 15 years. This is a great
opportunity not only for the world-famous producers of the product, such as
Mexico and Kenya, but also for the potential producers like Ethiopia.

According to the researcher, Ethiopia is a country suitable for avocado
production. However, the sector is largely limited to the domestic market.
Lack of production, market linkage and infrastructure, as well as low number
of investors and industries in the sector, as well as the lack of inputs to
pack the produce, are the main reasons why avocado production is limited in
the domestic market.

 

Similar studies on avocado production predicts that Ethiopia will take
advantage of the international avocado market by giving special attention to
its potential and modernizing the private sector, small enterprises, service
providers, and research and development. Ethiopia has also started producing
avocados using advanced and modern production methods. In this regard, it is
striving to meet the demand for raw materials of factories, to supply high
quality avocado to the global markets, and to supply various products to
local markets in the required quantity and quality.

 

In particular, different climate areas of the country have the potential to
develop a wide cluster of avocados fruit and improve production and
productivity. Efforts are being made to produce quality avocado targeting
the world market by identifying suitable technologies and focusing on model
seedlings at full capacity. The avocado has already started to be exported,
and the development has received a lot of attention. It has created a great
deal of motivation among both professionals and farmers.

 

Various factories are also producing avocado and making it available to
locals and foreigners. International exporters are also exporting
Ethiopian-grown avocados.

 

The UK, Europe and the Middle East are among the destinations of the
Ethiopia's avocado.

 

Currently, Ethiopia becomes a major source of avocado like Mexico but is
weak in terms of supply to the international market beyond domestic
consumption. Thus, special training and related support is needed to provide
to Ethiopian farmers to utilize their potential, to improve their production
knowledge and skills.

 

Local producers' associations have also begun to invest in avocados. To this
end, Koka Bej Agricultural Development in North Mecha Woreda of Amhara State
is one example of this. This irrigation project has been underway on 229
hectares of land for the past four years. It is also involving 1,200
farmers. Improved avocado production using artificial lakes has begun to be
exported.

 

Avocados are also widely grown in the southern region. Many young people,
especially in the Sidama region, have begun to participate in and benefit
from avocado development. A similar pattern is emerging in Oromia.

 

The Ministry of Agriculture is working on a 15-year project to develop
avocado. Avocados are one of the most important fruit seedlings being
planted under the green legacy program. This, together with the development
of the farmers, is creating the capacity to increase the foreign exchange
earnings of the sector as well as the supply to the domestic market.

 

According to various experts, the effort for avocados is not the same as the
focus on other crops. Fruit and vegetable products are easily perishable if
not available in the market soon, which includes marketing, supplying
seedlings, mobilizing and preparing farmers.

 

Avocado is one of the products that have been given special attention by the
Ethiopian Agricultural Transformation Agency. The agency said it has been
providing various support to avocado production in the past three years,
especially in Amhara, Oromia, Tigray and SNNPR.

 

The agency is conducting market research, identifying buyers, and
government-aligned activities for productive farmers. According to the
agency, the demand for avocados has increased significantly.

 

Ethiopia's avocado production becomes high during the winter months. The
main reason for this is that the avocado, which is produced in Ethiopia,
arrives to the market in July. Countries such as Mexico, which is known for
exporting avocados, do not have access to it at this time. This has created
a better opportunity for Ethiopia to earn better foreign exchange from
avocado.

 

Experts in the area recommended that strengthening irrigation development
for the better benefit of farmers in the sector paves the way for them to
export their produce on their own enable the country to make the most of its
avocado potentials.-Ethiopian Herald.

 

 

Nigeria Inflation Slows for Sixth Straight Month

When compared on a monthly basis, the prices of goods and services actually
rose as the headline index climbed between August and September.

 

Nigeria's inflation rate fell for the sixth consecutive month in September
amid decelerating food prices, the National Bureau of Statistics has said.

 

The statistics office said Friday that the prices of goods and services,
measured by the Consumer Price Index (CPI), rose by 16.63 per cent. This is
0.38 per cent points lower than the rate recorded in August 2021 (17.01) per
cent.

 

On a month-on-month basis, the headline index increased by 1.15 per cent in
September 2021, a 0.13 per cent rate higher than the rate recorded in August
2021 (1.02) per cent.

 

The bureau said the Composite Food Index rose 19.57 per cent in September
2021 compared to 20.30 per cent in August 2021.

According to the NBS, this rise in the food index in September was caused by
increases in prices of oils and fats, bread and cereals, food product, fish,
coffee, tea and cocoa, potatoes, yam and other tuber and milk, cheese and
egg

 

It added that on a month-on-month basis, the food sub-index increased by
1.26 per cent in September 2021, up by 0.20 per cent points from 1.06 per
cent recorded in August 2021.

 

"The average annual rate of change of the Food sub-index for the twelve
months ending September 2021 over the previous twelve-month average was
20.71 per cent, 0.21 per cent points from the average annual rate of change
recorded in August 2021 (20.50) per cent," it said.

 

The report added that the percentage change in the average composite CPI for
the twelve months ending September 2021 over the average of the CPI for the
previous twelve-month period was 16.83 per cent, showing a 0.23 per cent
point from 16.60 per cent recorded in July 2021.

 

"The Urban Inflation rate increased by 17.19 per cent (year-on-year) in
September 2021 from 17.59 per cent recorded in August 2021, while the Rural
Inflation rate increased by 16.08 per cent in September 2021 from 16.45 per
cent in August 2021.

 

On a month-on-month basis, the Urban Index rose by 1.21 per cent in
September 2021, up by 0.15 the rate recorded in August 2021 (1.06), while
the Rural Index also rose by 1.10 per cent in September 2021, up by 0.11 the
rate that was recorded in August 2021 (0.99) per cent, the report
added.-Premium Times.

 

 

 

Cameroon: Food Hero - Cameroon's Shrimp Entrepreneur

A Cameroonian woman who set up her own smoked shrimp business, has been
recognized by the UN's Food and Agriculture Agency (FAO) for her
contribution towards unlocking the potential of selling shellfish locally
and abroad.

 

Cameroon sits on the Atlantic coast where Western and Central Africa meet.
It was named "Rio dos Camarões" or, "River of Prawns", by Portuguese
explorers, because of the abundance of the crustaceans they discovered in
the area.

 

Anastasie Obama has been named an FAO Food Hero and ahead of the
International Day of Rural Women marked annually on 15 October, she has been
speaking to the UN.

 

"As a little child, I was always fascinated to see women preparing seafood.
When I was seven years old and I was still going to school, I would buy
shrimp for my aunt, I would smoke it and then we would sell it. That's how
my business in Yaoundé, the capital of Cameroon began, some years ago.

I used to cut wood at home and do the smoking and distribute in the village.
It was a small operation and I didn't even have an oven. My husband was very
supportive, and I started getting more clients and our shrimp was being sold
abroad.

 

With the little means that we shrimp smokers have, we sell and make a little
profit to cover our cost. It's not enough but we make do.

 

Today, shrimp is Cameroon's main seafood export product. I have heard that
the shrimp sector employs around 1,500 people and I believe shrimp is
healthy food which is eaten by many.

 

One of the problems we face is that it is hard for us to get fresh seafood
and to conserve it.

 

The COVID-19 pandemic has depressed the local market even more. If we had
some capital, we would get a cold chamber to keep our fish and only smoke it
when we had an order.

 

I and others in the business have been supported by FISH4ACP, a global
initiative for sustainable fisheries and aquaculture development in Africa,
the Caribbean and the Pacific.

 

It is helping us to unlock the potential of the shrimp sector in Cameroon
and support us in making this value chain more competitive and sustainable.

 

Ultimately, this will improve our livelihoods as well as contributing to
economic growth, increased food security and a reduction in the sector's
ecological footprint.

 

FISH4ACP is led by the Organisation of African, Caribbean and Pacific States
(OACPS) with funding from the European Union (EU) and the German Federal
Ministry for Economic Cooperation and Development (BMZ).-UN News.



 

Beverage Market Africa Continent is Regaining Power

As the continent of Africa is battling the coronavirus, the people and
governments hope that more efforts towards preserving the economy will
collapse and try to save lives that are dependent on the economy by
stimulating a more effective and faster vaccination program.

 

The alcohol market is a huge business in Africa, but since Covid reached the
continent, governments closed down bars, clubs and halted breweries in order
to decrease the spread of the virus in the society and to free up hospitals,
as the hospital covid cases were mainly people who were suffering from
alcohol problems. This resulted in a lower demand for the wine coolers like
the  wijnkoelkast inbouw  as people drink less alcoholic products like wine.

 

The impact of Covid and the government's regulations decreased companies'
trust in the economy and thereby lowered the amount of investments. This
also had an impact on the farmers who were suffering from less demand for
their products that was used for the brewing of crafts.

 

For the country South Africa, prohibition led to a huge meltdown in retail
sales. Nearly 1 billion dollars has been lost in revenue and also taxes and
excise duties during Covid and the prohibition.

 

The companies are suffering from its heaviest crisis in decades, whereby
over 25% of the local breweries in South Africa have been forced to shut
down their company.

 

In Rwanda the national brewer it’s profit decreased in the first half of
2020, which lead to suspended dividends and a lower share price which
eventually recovered during the second half of 2020.

 

The European brewer Heineken, which accounts for 90% of the market in
Africa, announced job cuts and postponed new investments in the continent.

 

People started buying cheaper wines during this difficult period, which will
be temporary and will be back to normal once the storm is over. The same
yield for the wine accessories market like the sales of wijnklimaatkast  and
other products related to wine drinking.

 

Last year the harvest of wine started around two weeks later than normal,
because of the cooler climate of the past season. The wine grapes producers
harvested their latest grapes in May.

 

The harvest kicked off around two weeks later than normal due to unusually
cool weather conditions throughout the season, which persisted throughout
harvest time and resulted in some wine grape producers harvesting their last
grapes in May. Thanks to sufficient water resources during the drought, many
regions were able to establish good and sustainable vine growth.

 

An emerging wine market of the continent of Africa is Angola, along with
Nigeria. Thanks to the prosperity from the oil and diamond industry and the
end of the civil war, the rich got richer. The rich people are like a group
of 5% of the country and they are ensuring that the wine market is growing
more and more. More luxury items such as wijnklimaatkast 2 zones  and other
furniture are being sold to people who can afford it.

 

Tunisia is after it’s attempt to stimulate agriculture in the 1960's, back
on track again. The country 's wine industry is developing again by adapting
a similar model as 70 years ago, which is a perfect case study.

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

National Unity Day

 

December 22

 


 

Christmas Day

 

December 25

 


 

Boxing Day

 

December 26

 


 

Public Holiday in lieu of Boxing Day falling on a Sunday

 

December 27

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

 

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


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

 


 

 

 

 

 

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