Major International Business Headlines Brief::: 19 October 2021

Tue Oct 19 10:25:27 CAT 2021

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Major International Business Headlines Brief::: 19 October 2021

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

ü  Amazon's Jeff Bezos 'may have lied to Congress'

ü  Tesco opens its first checkout-free store

ü  Heat pump grants worth £5,000 to help replace gas boilers

ü  China's growth slowdown suggests recovery is losing steam

ü  UK firms will have to disclose climate impact

ü  Amazon offers bonuses of up to £3,000 in run-up to Christmas

ü  Bank of England says it will act on inflation

ü  East European designers sashay onto the catwalks of high fashion

ü  Chinese property bonds firm after Kaisa and Sunac make coupon payments

ü  Megahit "Squid Game" puts focus squarely on Netflix's overseas growth

ü  Britain's fossil fuel dilemma in the spotlight as climate talks near

ü  Xiaomi CEO says firm to mass produce its own cars in H1 2024
-spokesperson

ü  Spotify to hire hundreds to drive ad sales in Europe, Australia, Canada

ü  Bitcoin nears record high ahead of futures ETF listing

 <mailto:info at bulls.co.zw> 

Amazon's Jeff Bezos 'may have lied to Congress'

Executives at Amazon, including founder Jeff Bezos, may have misled or lied
to Congress about the firm's business practices, top US lawmakers have said.

The members of the House Judiciary Committee said they were considering
referring the firm "for criminal investigation".

It follows an investigation by Reuters that claimed Amazon copied products
and rigged its search results in India to boost sales of its own brands .

Amazon strongly denies the allegations.

"Amazon and its executives did not mislead the committee, and we have denied
and sought to correct the record on the inaccurate media articles in
question," a spokesperson said.

On Monday, five members of the US House Judiciary Committee wrote to Amazon
boss Andy Jassy, who succeeded Mr Bezos in July.

They said "credible reporting" by Reuters and recent articles in other news
outlets "directly contradicts the sworn testimony and representations of
Amazon's top executives - including former CEO Jeffrey Bezos".

"At best, this reporting confirms that Amazon's representatives misled the
Committee. At worst, it demonstrates that they may have lied to Congress in
possible violation of federal criminal law," the letter states.

Continued investigations

Since 2019, the House Judiciary Committee has been investigating competition
in digital markets, including how Amazon uses third party seller data from
its platform, and whether the company unfairly favours its own products.

In sworn testimony before the Judiciary Committee's anti-trust subcommittee
last year, Mr Bezos said the firm forbids employees using data on individual
sellers to benefit Amazon's own-brand product lines.

In another hearing in 2019, Nate Sutton, Amazon's associate general counsel,
said the firm never used such data to create its own-branded products or
manipulate its search results for private gain.

"The algorithms are optimised to predict what customers want to buy
regardless of the seller," he said.

However, Reuters' investigation - which was based on thousands of pages of
internal Amazon documents leaked to the news agency - contradicted these
claims.

The news agency alleged that, in India at least, Amazon had a secret policy
of manipulating search results to favour Amazon's own products, as well as
copying other sellers' goods.

Reuters also claimed that at least two senior company executives were aware
of the policy.

The lawmakers' letter also cites other recent stories in the Markup, the
Wall Street Journal and the Capitol Forum about Amazon's private-brand
products and use of seller data.

The lawmakers have given Mr Jassy until 1 November to provide evidence to
corroborate the company's previous testimony and statements.

Their letter also notes that "it is criminally illegal to knowingly and
wilfully make statements that are materially false, conceal a material fact,
or otherwise provide false documentation in response to a congressional
investigation".

'Unsubstantiated'

"We strongly encourage you to make use of this opportunity to correct the
record... as we consider whether a referral of this matter to the Department
of Justice for criminal investigation is appropriate," the letter states.

In a statement, an Amazon spokesperson called the claims made by Reuters and
other media outlets "factually incorrect and unsubstantiated".

They added: "As we have previously stated, we have an internal policy, which
goes beyond that of any other retailer's policy that we're aware of, that
prohibits the use of individual seller data to develop Amazon private label
products.

"We investigate any allegations that this policy may have been violated and
take appropriate action."

Big tech companies including Amazon, Facebook and Alphabet have been under
growing scrutiny in Washington, Europe and other parts of the world.

Regulators are concerned they have too much power and are engaging in unfair
practices that hurt other businesses.

The lawmakers' letter was signed by a bipartisan group including Democrats
Jerrold Nadler, David Cicilline and Pramila Jayapal, and Republicans Ken
Buck and Matt Gaetz.

In India on Monday, a trade group representing thousands of brick-and-mortar
retailers has urged Prime Minister Narendra Modi to take action against
Amazon.--BBC

Tesco opens its first checkout-free store

Tesco is opening its first checkout-free store in central London later on
Tuesday.

The UK's biggest retailer said its branch in High Holborn had been converted
to allow customers to shop and pay without scanning a product or using a
checkout.

The new format, known as GetGo, follows similar stores opened by Amazon.

Customers with the Tesco.com app will be able to pick up the groceries they
need and walk straight out again.

Tesco said "a combination of cameras and weight sensors" would establish
what customers had picked up and charge them for products directly through
the app when they left the shop.

The technology is provided by Israeli tech start-up Trigo, which has similar
partnerships with supermarkets in Germany and the Netherlands.

Previously, some of Tesco's staff have been able to use the system in the
store at its headquarters in Welwyn Garden City, but this is the first time
it has been available to regular customers.

Kevin Tindall, managing director of Tesco Convenience, said: "Our latest
innovation offers a seamless checkout for customers on the go, helping them
to save a bit more time.

"This is currently just a one-store trial, but we're looking forward to
seeing how our customers respond."

However, Tesco is not the only supermarket experimenting with till-free tech
in the UK.

Richard Lim, chief executive of retail analyst group Retail Economics, said
Tesco's move was "reflective of the way the wider industry is heading".

Amazon Fresh now has three "just walk out" stores in London, having
initially rolled out the technology in 2018 in the US city of Seattle, for
example.

"One critical element of this for Tesco is also about gaining data and
trying to elevate their proposition as much as they can for their
customers," Mr Lim added.

The firm's Clubcard programme already has 6.6 million users on its app, so
the retailer is "well ahead of the curve" when it comes to using information
on what a customer buys, or how they shop, to personalise their experience,
Mr Lim says.

The supermarket has also benefited from a swing to online shopping during
the pandemic.

According to its most recent set of results, Tesco's group revenues jumped
by 5.9% to £30.4bn for the six months to August compared with the same
period last year.

Operating profits, however, also increased by 28% to £1.3bn for the period
due to several reasons including Covid-related costs, staff absences and
investment needed to cope with increased online sales.-BBC

Heat pump grants worth £5,000 to help replace gas boilers

Homeowners in England and Wales will be offered subsidies of £5,000 from
next April to help them to replace old gas boilers with low carbon heat
pumps.

The grants are part of the government's £3.9bn plan to reduce carbon
emissions from heating homes and other buildings.

It is hoped no new gas boilers will be sold after 2035. The funding also
aims to make social housing and public buildings more energy efficient.

Experts say the budget is too low and the strategy not ambitious enough.

Ministers say the subsidises will make heat pumps a comparable price to a
new gas boiler. But the £450m being allocated for the subsidies over three
years will cover a maximum of 90,000 pumps.

Jonny Marshall, senior economist the Resolution Foundation, a think tank
focusing on poverty, described the strategy as "a welcome start" but said it
didn't go far enough.

"The 90,000 heat pumps that this new scheme is expected to fund still falls
well short of the 450,000 heat pumps the Climate Change Committee says need
to be installed by 2025 in order to keep the UK on track to cut emissions
from our homes in half by 2035," he said.

Heating buildings is a large contributor to the UK's overall greenhouse gas
emissions, representing over a fifth of overall emissions, so there is
pressure on the Heat and Buildings Strategy to deliver effective reductions.

It comes as the government prepares to outline its overarching strategy for
how the UK will reduce its dependency on fossil fuels and achieve sharp
reductions in emissions over the next couple of decades.

Business and Energy Secretary Kwasi Kwarteng said the grants to support the
adoption of heat pumps, available from next April, would play a role in
that, by helping to bring down the cost of the relatively new technology by
2030.

Currently an air source heat pump costs between £6,000 and £18,000,
depending on the type installed and the size of a property.

"As the technology improves and costs plummet over the next decade, we
expect low-carbon heating systems will become the obvious, affordable choice
for consumers," Mr Kwarteng said.

"Through our new grant scheme, we will ensure people are able to choose a
more efficient alternative in the meantime."

While homeowners will be encouraged to switch to a heat pump or other
low-carbon technology when their current boiler needs replacing, there is no
requirement to remove boilers that are still working, the government
emphasised.

Writing in the Sun, Prime Minister Boris Johnson said "the Greenshirts of
the Boiler Police are not going to kick in your door with their sandal-clad
feet and seize, at carrot-point, your trusty old combi".

Mr Johnson also sought to reassure voters about the government's ambitions
by stressing that the costs of low-carbon heating systems would go down over
time while their introduction would help create thousands of new job
opportunities.

Heat pumps extract warmth from the air, the ground, or water - a bit like a
fridge operating in reverse.

They are powered by electricity, so if you have a low-carbon source of
electricity they provide greener heating.

One energy firm, Octopus Energy, said it expected homeowners would initially
contribute around £2,500 to the cost of installing a heat pump, roughly
equivalent to the cost of a new gas boiler. The government subsidy would
cover the rest of the cost.

But many houses will require an upgrade to their energy efficiency,
including insulation, before installing one.

The bulk of the £3.9bn funding spread will be invested in decarbonising
public buildings, insulating and installing new heating systems in social
housing and for those on low incomes, and helping to provide clean heating
networks for homes that are not suitable for heat pumps.

As well as subsidies for low-carbon heating, it includes:

£3.45bn to decarbonise buildings in England and Wales including social
housing and district heating schemes

£60m to drive technological innovation to develop clean heating systems that
are smaller, easier to install and cheaper to run. This money will come from
a previously announced innovation fund

Environmental group Greenpeace said the strategy contained "unambitious
policies and inadequate funding".

"Sadly the government has stopped short of what's required to transform our
housing into the clean, affordable, energy efficient homes that we all want
and need to be living in," Greenpeace UK's climate campaigner, Caroline
Jones, said.

Mike Childs, head of science at Friends of the Earth, said the scheme would
only incentivise better-off households.

"This is a start, it's just not a very good one when the many benefits of a
really generous scheme are abundantly clear: from warm, healthy homes to
slashed emissions, with jobs to boot," he said.

Independent climate think tank E3G said that setting the phase-out date for
new fossil fuel boilers was "a world-leading achievement" and the pledge to
reduce heat pump costs by 2030 was to be welcomed.

However, the funding was insufficient to achieve the government's goals on
reducing emissions, programme leader Pedro Guertler said.

"On energy efficiency alone, the public investment announced today falls
£2bn short of what was pledged in the Conservative manifesto to 2025," he
said.

In all there would need to be a further £9.75bn invested over the next three
years, he said, to meet ambitious commitments on reducing emissions.

"It's challenging, but necessary, achievable and a great investment for
people, jobs, skills and manufacturing," he added.

Ed Miliband, the shadow business secretary, described the strategy as
"meagre, unambitious and wholly inadequate", adding that Labour had pledged
to spend £6bn a year on insulation and low carbon heating.

The Liberal Democrats described the heating plan as "a kick in the teeth for
families across the country facing soaring energy bills this winter".

It's another piece in the Boris Johnson climate-calming jigsaw.

First, he slots in a world-leading policy halting the sale of petrol cars by
2030.

Now he lays down another piece - no new gas boilers after 2035. It's another
trend-setting initiative that other nations will surely follow.

There's a problem, though. Because by that date in the middle of the next
decade the PM has already pledged to cut emissions overall by 78% over 1990
levels.

Energy experts say that simply won't happen unless he provides much wider
incentives for people to insulate their homes and to buy heat pumps to
replace their gas boilers.

One group of researchers estimates that to meet his net zero targets he
needs to invest nearly another £10bn over three years.

They hope the chancellor will fill that piece of the jigsaw in his spending
review next week.

Industry sources welcomed the new strategy.

The Confederation of British Industry, representing larger UK businesses,
said the strategy would help members prepare for the changes ahead.

Matthew Fell, CBI chief policy director, said it provided "a golden
opportunity for both the public and private sector to pick up the pace of
progress to net zero".

But he called for "a clear delivery plan for consumers, businesses and local
authorities".

Chief Executive of ScottishPower Keith Anderson said it would kick-start
demand for electric heating, "allowing the industry to accelerate the
delivery of electrification and quickly bring down upfront costs."

And Phil Hurley, Chair of the Heat Pump Association, said it would give the
industry a confidence boost - allowing it to scale up and retrain in
preparation for the "mass rollout of heat pumps".

However, Joanne Wade, from the Association for Decentralised Energy, said
she was disappointed that there was "nothing about further supply chain
support to build skills and de-risk market entry for smaller firms".-BBC

China's growth slowdown suggests recovery is losing steam

China's economy grew 4.9% in the July to September quarter from a year
earlier, the slowest pace in a year and worse than analysts had predicted.

This was far slower from the previous quarter when growth was almost 8%,
suggesting the recovery is weakening.

Power shortages, outbreaks of Covid-19 and pressure from Beijing on a number
of industries are taking their toll.

These developments may dampen growth for the rest of the year and should not
be underestimated, one expert said.

The world's second-largest economy has faced a number of challenges in
recent months.

Power crunch

Firstly, when it has come to power supply, soaring global commodity prices
have affected the cost of raw materials.

This has come at the same time as Beijing has increased the pressure on
regional governments to reduce their carbon emissions in line with the
country's goal to be carbon neutral by 2060.

Many provinces implemented electricity rations, causing blackouts for homes
and factories to close.

This coincided with the country's largest coal producing province suffering
from torrential flooding. The Shanxi region produces about 30% of China's
coal.

The heavy rains have led the coal price to hit fresh highs and the
government to abandon production caps.

The power cuts have disrupted many industries in the country, particularly
those that use a large amount of energy, including cement production, steel
and aluminium smelting.

China's "factory gate" prices - a measure of what manufacturers charge
wholesalers for products - have felt these effects, growing at the fastest
rate since records began 25 years ago.

"The downturn in industry looks set to deepen," said Capital Economics'
senior China economist Julian Evans-Pritchard, with thermal coal prices
still climbing.

China GDP graphic

This has come at the same time as China's property sector has faced
increasing pressure to rein in its debt.

The most notable example, the China Evergrande Group, owes more than $300bn
and finds itself on the brink of default.

Another property developer Fantasia defaulted while Sinic Holdings has
warned it is at risk of going down the same path, sparking fears of wider
problems.

"The slowdown in the property sector will affect the activities of firms in
areas such as construction contracting, building materials, and home
furnishing," said Yue Su from the Economist Intelligence Unit.

Despite this, China's central bank has downplayed the risk of contagion over
the weekend, breaking its silence on the crisis.

Evergrande's "financial liabilities make up less than one-third of its total
liabilities, and the creditors are diverse," said Zou Lan, a director at the
People's Bank of China.

"Individual financial institutions are not at high risk exposure to
Evergrande. Its spillover risks on the financial industry are overall
controllable."

Woei Chen Ho, an economist at United Overseas Bank in Singapore, says the
energy crunch and crackdown on the property sector means the bank is likely
to downgrade its growth forecast for China for the year.

"The numbers are actually much weaker than what we thought. I think in the
fourth quarter it will be even slower because we will see more impact from
the energy crunch."

>From big tech to gaming to the education sector, a number of China's biggest
companies are facing policy curbs aimed at social transformation.

The Chinese government has unveiled a five-year plan indicating that this
crackdown will go on for years.

While these reforms are aimed at long-term growth, they are currently
weighing on domestic consumption and investment, according to Chaoping Zhu
from JP Morgan Asset Management.

"Short-term shocks seem inevitable when a variety of policy measures have
been introduced in a short period since July," he said. -BBC

UK firms will have to disclose climate impact

Some large UK businesses will have to start disclosing their environmental
impact, under new rules set to be brought in by the Treasury.

The requirements will also apply to investment products and pension schemes.

It comes ahead of November's COP26 meeting in Glasgow, where world leaders
will discuss their climate commitments.

Experts say the UK, which is hosting the event, is not currently on track to
meet its own emissions targets.

Boris Johnson has pledged to cut emissions by 78% by 2035, compared with
1990 levels.

The Treasury said the new sustainability disclosure requirements (SDR) mean
an investment product will now have to set out the environmental impact of
the activities it finances.

In addition, a company's sustainability claims will have to be justified
"clearly", and their net zero transition plans properly set out.

The aim is to combat "greenwashing", where firms make misleading claims
about their environmental commitments.

But the government said the information will "only be impactful" if
customers and investors actually use it.

Chancellor Rishi Sunak said: "We want sustainability to be a key component
of investment decisions, and our plans will arm investors with the right
information to make more environmentally-led decisions."

He said the rules will "set new global standards for sustainability that
will boost the economy, protect the planet and support our net zero goals".

It is unclear when the rules will come in, or what will happen to firms that
do not comply. Details of the specific reporting requirements will only be
developed after a public consultation.

'Positive step'

Mr Sunak first mentioned SDRs in July and has announced these next stages
for the requirements in the report: "Greening Finance: A Roadmap to
Sustainable Investing".

Sam Alvis, from the Green Alliance think tank, said it was a "positive step
in greening the private sector".

"While new green finance is vital, stopping money going into environmentally
destructive investments is key. The upcoming spending review is an
opportunity for the chancellor to apply the same rules for public spending,"
he added.

Rain Newton-Smith, chief economist at the Confederation of British Industry,
said greater clarity on environmental impact "will help investors channel
finance into projects that are aligned with net zero targets and will reduce
carbon emissions across our economy".

But Heather McKay from E3G, an independent climate change think tank, told
the BBC the government would need to send clear signals about "what is green
and what is not" to ensure companies really change how they operate.

She said this would be a "crucial step" to tackling greenwashing.

Without the right information available, Jessica Fries, chairman of
Accounting for Sustainability said that investors and pension funds have
made decisions "in the dark".

"As a global centre of finance, it will be important that the
recommendations align with emerging requirements globally," Ms Fries added.

Barbara Davidson, of think tank Carbon Tracker, said better enforcement of
current accounting requirements was also required to combat greenwashing.

"Without this, investors do not have the requisite information about the
effects of climate change for their decision-making," she said.

Boris Johnson's government is currently on track to cut only about a fifth
of UK emissions by 2035, compared with 1990s levels, according to a group of
experts that advises the government.-BBC

Amazon offers bonuses of up to £3,000 in run-up to Christmas

Online retail giant Amazon is to offer one-off payments of up to £3,000 in
order to attract staff in UK regions where there is high demand for labour.

The online retailer is hiring for 20,000 positions across its UK network
during the festive season.

Fears over worker shortages have already prompted other firms to warn of
problems in the run-up to Christmas.

Amazon began offering a £1,000 signing-on bonus to recruit permanent staff
in some regions in August.

As first reported in the Guardian, the company's latest recruitment drive
has included a £3,000 bonus for full-time workers at sites such as its
Exeter warehouse, while in Peterborough, new temporary and permanent workers
are offered a sign-up bonus of £1,500.

Pay for the temporary roles starts at a minimum of £10 per hour, rising to
£11.10 in some parts of the UK.

Toy shops warn of Christmas shortages amid delays

How do I find a new job and who is hiring?

Over the past few months, the shortage of workers in a range of sectors has
led to delivery delays and waste.

According to the latest official figures, the number of job vacancies hit
1.1 million between July and September - the highest level since records
began in 2001.

The largest increase in vacancies was in the retail sector and for motor
mechanics, the Office for National Statistics said.

Jobs vacancies graph

Fashion chain Next and supermarket Iceland are among firms warning of
potential pre-Christmas disruption because of staff shortages.

Some overseas workers have left the UK during the pandemic and also
following Brexit. The furlough scheme, which ends this month, has also kept
some workers out of the jobs market.

'Harder' for small firms

Andrew Goodacre, chief executive of the British Independent Retailers
Association, said he was "concerned by the level of wage inflation and bonus
payments being instigated by large companies such as Amazon".

Mr Goodacre explained that finding seasonal workers was "proving difficult"
at the "most important time of the year" for many small businesses.

"This kind of action from Amazon will make it harder still for smaller
companies who simply cannot afford such wages."

Mick Rix, national officer for the trade union GMB, said: "Amazon has been a
pandemic profiteer - raking in astronomical sums during the Covid crisis.

"It is only right that they listen to the union representatives of their
workforce and ensure that Amazon workers share in the vast profits that the
company are making."

In September, the firm announced it had paid £492m in direct taxation last
year as its sales rose 50% to £20.63bn amid a Covid-driven surge in demand.

What's in short supply and why?

Amazon pays £492m in UK tax as sales hit £20.6bn

In the past Amazon has faced accusations of poor working conditions both in
the UK and the US, where it is the country's second largest employer.

Speaking of the new bonuses, one warehouse worker who has worked at an
Amazon site for several years told BBC News: "It wouldn't be the first time
the incentives have been offered.

"It leaves workers who have been there for years feeling rather undervalued
and underappreciated, as they are training people who are making more money
than them, which definitely ticks off the longer term employees."

In March, the Unite union launched a whistleblowing hotline for Amazon
workers in the UK. It also called for Amazon to allow British workers to
unionise and to have a greater share of the firm's profits.-BBC

Bank of England says it will act on inflation

The Bank of England "will have to act" over rising inflation, governor
Andrew Bailey has warned, suggesting that UK interest rates may rise soon.

However, he gave no indication of when the Bank might increase rates from
the current record low of 0.1%.

The Bank has already said UK inflation is set to exceed 4% before falling
back as the economy recovers from Covid.

But Mr Bailey said surging energy prices would push inflation higher for
longer than previously thought.

Investors are expecting rates to be raised later this year or early in 2022,
in an effort to bring inflation back down to the Bank's target of 2%.

The most recent figures show prices rose by an average of 3.2% over the past
12 months. New figures are due out on Wednesday.

Financial commentators described Mr Bailey's remarks, which were given in an
online panel of central bankers, as his clearest hint yet that a rate
increase could be imminent.

"Monetary policy cannot solve supply-side problems - but it will have to act
and must do so if we see a risk, particularly to medium-term inflation and
to medium-term inflation expectations," the Bank governor said.

"And that's why we at the Bank of England have signalled, and this is
another such signal, that we will have to act," he added.

"But of course, that action comes in our monetary policy meetings."

The Bank's rate-setting Monetary Policy Committee (MPC) is next due to meet
on 4 November.

Mr Bailey said demand for workers in the UK had been stronger than expected,
while the number of younger and older workers leaving the labour market had
grown.

"I do have concerns about labour supply growth," he said.

David Blanchflower, who was an MPC member from 2006 to 2009, reacted
strongly to the idea of a speedy interest rate rise, saying it would be a
"terrible error" and an "absolute disaster" that could even tip the UK into
recession.

"We have had a couple of months of growth of inflation, but it looks
terribly temporary," he told the BBC's Today programme.

Even the rises in energy prices were "one-off shocks", he said.

He advised the MPC to take a "steady as you go" approach, saying: "There's
nothing to stop you waiting."-BBC

East European designers sashay onto the catwalks of high fashion

(Reuters) - With celebrities such as Rihanna, Justin Bieber and Billie
Eilish wearing its designs, Hungarian fashion house Nanushka has stardust
many designers can only dream of.

Yet the company is just one of a number of upstart designers from central
Europe elbowing their way to the top of global fashion, showcasing their
collections on the catwalks of London, Paris and New York as they target
lucrative markets such as China and the United States.

Once a struggling local brand, Budapest-based Nanushka has seen annual
revenue grow 33-fold to 33 million euros ($38.32 million) since a private
equity firm came aboard in 2016.

Focusing on sustainable designs including its vegan leather apparel,
Nanushka has become Europe's fastest-growing fashion company, according to
the annual FT 1000 list of Europe's high-growth companies.

Other ready-to-wear designers that have emerged from central Europe onto the
global scene include Slovakia-based Nehera, worn by Hollywood stars Keira
Knightley, Tilda Swinton and Marion Cotillard, and Poland's Magda Butrym,
sported by Megan Fox and Hailey Bieber among others.

For these firms, creating a niche in high fashion has been facilitated by
Facebook Inc's (FB.O) Instagram and other online platforms which help young,
independent designers outside of international fashion centres to be seen by
a global audience hungry for something different.

"Without social media probably you know 15-20 years ago it would have been
almost impossible to build a global fashion house from Budapest," Nanushka's
Chief Executive Peter Baldaszti - married to founder and designer Sandra
Sandor - told Reuters.

The brand - which opened a New York store in 2019 and another in London in
2020 despite the pandemic - counts the United States as its biggest market
but says China is the future. Parent company Vanguards Fashion Group, of
which Baldaszti is also CEO, also snapped up Italian fashion brand Sunnei
for $7 million in 2020 as part of a strategy to build a fashion portfolio
across Europe.

Central Europe boasts a long tradition of craftsmanship in the textile
industry dating back to the First Republic era between the two World Wars
when the region was an epicentre of culture and design.

Following the fall of Communism in 1989, Western luxury brands and fashion
houses set up shop to produce bags, scarves and clothes in the region,
capitalizing on the proximity to west European markets, lower costs and a
skilled workforce.

Now local luxury brands in those markets are moving in the other direction
to tap into a global luxury goods sector pegged to grow to around $383
billion in 2025 from $309 billion this year, helped by demand in China and
among Millenials, according to Hamburg-based database company Statista.

"We started with showing in Paris ... but Instagram is something that really
opened the door for brands from countries that are not really on the fashion
map at all," Polish handbag-maker Chylak founder Zofia Chylak told Reuters.

A Chylak handbag, made of Italian leather, costs around 200-250 euros and
the brand's popularity among some Polish influencers living abroad has
helped it become a global name.

DESIRE FOR AUTHENTICITY

Bratislava-based Nehera – named after Czech businessman Jan Nehera who in
the 1930s was first in the world to pioneer ready-to-wear clothing -
presented its 2022 spring collection in Paris and plans to return to New
York after pulling back during the pandemic.

“We are aiming to re-enter the U.S. and European markets," Ladislav Zdut,
founder of the brand which last month opened a showroom in Milan and is in
early talks with local investors to help fuel expansion plans, told Reuters.

“But we significantly increased orders to South Korea and China and were
growing during the pandemic.”

A young generation of designers from smaller countries - many of whom worked
or studied abroad - have also accumulated the contacts and knowledge to
serve an international luxury market, said Achim Berg, global leader of
McKinsey's apparel and fashion group.

"The big luxury brands are dominating the trends in the market but there is
a desire for new brands for curation and authenticity," he told Reuters.

Scandinavian brands such as Acne Studios, Ganni and Toteme show how firms
from a small region outside the fashion capitals can establish themselves,
according to Berg.

In central Europe, rising incomes have also created a stable local customer
base able to afford luxury items that help fledgling designers establish
themselves before looking abroad, designers and companies say.

Poland's Magda Butrym embraced the local-first approach when starting up in
2014 before going global, Chief Executive Jakub Czarnota told Reuters.

Lady Gaga was seen wearing a short, polka dot Magda Butrym dress in one
recent Instagram post and the brand, also favoured by social media
influencers, is now present in 40 markets. Asia and the Middle East offer
strong growth opportunities going forward but the company will continue to
scour its regional roots to create something different, Czarnota said.

"Global consumers are eager to discover newness and this gives brands an
opportunity.

"Eastern European designers can look for inspiration to their regional
culture and heritage and translate them into distinct products and
collections," he said.

($1 = 0.8611 euros)

Chinese property bonds firm after Kaisa and Sunac make coupon payments

(Reuters) - Chinese property bonds remained firm on Tuesday after two major
developers made coupon payments, though the market remained focused on the
potential for default by China Evergrande Group (3333.HK) this week.

The bond market has responded positively to comments from China's central
bank on Friday and Sunday saying that spillover effects from Evergrande's
debt problems on the banking system were controllable and that China's
economy was "doing well".

Sunac China (1918.HK), which has a $27.14 million payment due Tuesday, has
paid its bondholders, a source with direct knowledge of the matter said.

The source was not authorised to speak to media and declined to be
identified. A Sunac representative did not immediately respond to request
for comment.

Kaisa Group (1638.HK) said on Monday it has paid a coupon due Oct. 16 and it
plans to transfer funds for a coupon worth $35.85 million due Oct. 22 on
Thursday. read more

The liquidity crisis at Evergrande, China's No. 2 developer, which has $300
billion in debt and has missed a series in bond payments, has roiled global
markets. High-yield bonds issued by Chinese property developers have been
especially hammered.

An Evergrande bond due March 23, 2022 will officially be in default if the
company does not make good after a 30-day grace period for a missed coupon
payment that had been due on Sept. 23.

Bonds from Chinese developers that gained on Tuesday included Modern Land's
2022 bonds which bounced over 8% to 40.250 cents on the dollar, while
Central China Real Estate's 2024 bonds climbed over 5% to 44.843 cents.

On Monday, smaller developer Sinic Holdings (2103.HK) defaulted on $246
million in bonds as expected. It had warned of the default last week, saying
it did not have sufficient financial resources.

The Thomson Reuters Trust Principles.

Megahit "Squid Game" puts focus squarely on Netflix's overseas growth

(Reuters) - The success of the South Korean dystopian drama series "Squid
Game" has led investors to bet on Netflix Inc's (NFLX.O) plans to explore
more international content to boost slowing subscriber growth.

With a 111 million-strong fan base in just 27 days after its release, the
low-cost survival drama has become Netflix's biggest original show launch
ever, underpinning its efforts to ramp up investments in overseas content.

"We continue to view international expansion as a key driver of subscriber
growth, particularly in less-penetrated, emerging markets," Guggenheim
analysts said in a client note.

In the first half of the year, the streaming giant had reported its slowest
pace of subscriber additions since 2013 due to the coronavirus-led break in
production.

But, as "Squid Game" became an instant worldwide sensation after launching
towards the end of the third quarter, analysts said actual global subscriber
additions can topple estimates of 3.8 million and benefit the next three
months too.

THE CONTEXT

Netflix has lost a lot of market share since the onset of the pandemic as
newer, more exclusive platforms gained quick popularity from stay-at-home
entertainment seekers.

Apple TV+ (AAPL.O), for instance, is banking on the success of "Ted Lasso"
and raised its share of the global streaming pie by 75% this year, according
to research firm Parrot Analytics.

Netflix's most formidable challenger Disney+ sits on a base of 116 million
paying subscribers in a short span of two years.

Meanwhile, AT&T-owned (T.N) HBO Max raised its global subscribers forecast
to between 70 million and 73 million by July, indicating the preference to
stream content-on-demand is here to stay.

International shows like "Money Heist", "Lupin" and "The Crown" have drawn
cross-border fame and several Emmy award nominations, helping steady the
overseas subscriber growth.

"The streaming wars, as they currently stand, are not a battle to unseat
Netflix within viewers' homes, but rather to earn a place alongside the red
giant," MoffettNathanson analysts said in a research note.

Bloomberg News reported that "Squid Games" would add about $900 million to
the company's value, citing internal documents.

FUNDAMENTALS

* Analysts estimate Netflix's third-quarter revenue to grow 16.14% to $7.48
billion when it reports results on Oct. 19

* Earnings per share is estimated at $2.56

* As of Friday's close, its shares have gained about 16% so far this year

WALL STREET SENTIMENT

* Wall Street analysts are largely bullish, with 33 out of 45 rating the
stock "buy" or higher, while eight have a "hold" rating and four rate it as
a "sell" or lower.

* The median price target is $650 versus the current price of $629.84

The Thomson Reuters Trust Principles.

Britain's fossil fuel dilemma in the spotlight as climate talks near

(Reuters) - Britain faces a fossil fuel dilemma: it can burnish its green
credentials by halting new oil and gas development in the North Sea, yet
doing so will leave it more reliant on imported fuel.

How Britain charts a course to achieve net zero emissions by 2050 will be
under scrutiny when it hosts the COP26 climate conference in Glasgow,
Scotland, starting on Oct. 31.

Navigating that route has already proved challenging.

In June 2019, when Britain enshrined its 2050 net zero target in law,
Greenpeace activists steered speedboats towards a BP platform in the North
Sea brandishing a "Climate Emergency" banner to try to stop production
starting from Vorlich oilfield.

Neither legislation nor activism halted the development. Production from
Vorlich started in November 2020.

Oil majors say new production can play a role in managing decline, while
campaigners are pressing for an immediate halt to new projects with
publicity stunts and legal action.

The government, meanwhile, needs to keep the nation's lights on as it
smoothes over volatile energy markets and juggles competing demands over how
to achieve its climate goals.

"If supply goes away and demand doesn't change, that only has one
consequence and that is an escalation in price rises," BP (BP.L) Chief
Executive Bernard Looney said this month.

Britain and other European states have already felt this acutely. Brent
crude , a benchmark based on North Sea barrels, is up more than 60% this
year, while the price of UK benchmark wholesale gas has risen more than
250%.

The challenge caused by shrinking domestic production and rising fuel
imports has been felt across Europe. The European wholesale gas price is up
more than 350% this year.

Britain, which could once depend on its own fields for oil and gas to fire
up its power stations, fuel its cars and heat its homes, has been a net
energy importer since 2005 as output from the North Sea has dwindled.

With the capacity of its gas storage facilities now only enough to last the
nation a few days, Britain's reliance on just-in-time supplies shipped in
from Qatar or elsewhere leave it exposed when the market tightens, like now
with the surge in demand as economies recover from the COVID-19 pandemic.

Britain depends on energy imports

Britain depends on energy imports

PRESSURE TO ACT

For activists, the answer is not turning the taps back on but rather
reducing domestic fossil fuel consumption.

"We're calling on Boris Johnson to stop pushing through new oil and gas
projects," said Greenpeace activist Philip Evans, addressing the British
prime minister who has been pressing other countries to deepen climate
commitments before COP26.

"If the government is worried about keeping the lights on there are things
they can be doing to reduce demand," Evans said, including improvements to
home insulation, cleaner public transport and more investment in renewable
power generation.

Around 70 scientists and academics sent an open letter published in
Britain's Independent newspaper this week calling on Johnson to stop
allowing investment and licensing for new oil and gas fields, saying that
"now is the time for bold political action".

Britain has made progress in some areas. It is the world's biggest offshore
wind power producer - and is expanding this resource rapidly. But that
doesn't power homes on windless days.

Yet, there is rising pressure to act faster to curb fossil fuel use. The
International Energy Agency said in a report the world must halt new oil and
gas projects to achieve the 2015 Paris climate summit targets that aim to
limit global warming to 1.5 degrees Celsius by 2050 compared with
pre-industrial levels.

"The purity of the (IEA) report is excellent, but the reality in practice
for countries is about ensuring security of supply," Anne-Marie Trevelyan
told Reuters in June when she was still British minister of state for energy
and clean growth.

Britain has not committed to ending North Sea exploration, taking a similar
approach to Norway but not Denmark, another North Sea producer, which has
halted new projects.

Britain has, however, been managing a decline, with production now half its
1999 peak at about 1 million barrels of oil equivalent per day (boepd), or
about 1% of global oil demand.

Where do Britain's LNG imports come from?

SUPPLY SECURITY

Oil and Gas UK (OGUK), an industry association, has committed to making the
North Sea an operationally net zero basin by 2050, which means it aims to
eliminate, capture or offset any residual emissions from producing oil and
gas there.

It said in September that domestic production was cheaper and cleaner than
imported gas, given shipping fuel creates emissions and because some other
producing nations have poor environmental records.

"Making the most of indigenous resources helps meet UK demand and contain
price growth, providing secure supplies with a lower carbon footprint than
imports offer," OGUK said.

Britain's Oil and Gas Authority said gas extracted from the British North
Sea had an average emission intensity of 22 kg carbon dioxide equivalent per
barrel of oil equivalent, while imported LNG had an average intensity of 59
kg.

Yet, Greenpeace and other activists say these arguments miss the point:
using fossil fuels must stop rather than simply trying to make using them
cleaner.

To push for swifter action, they have taken campaigning to the courts.

In one case, Greenpeace sought to have a BP gas field licence scrapped over
its emissions via a Scottish court - although the action failed. read more

In another case, it is seeking to halt development of the Cambo field off
the Shetland Isles, a field part owned by Royal Dutch Shell (RDSa.L).

"We've delivered a 12-foot oil-stained statue of Boris Johnson right to the
gates of Downing Street calling him out as a monumental climate failure,"
said Greenpeace's Evans. "They can expect to see a lot more of Greenpeace in
the court room."

The Thomson Reuters Trust Principles.

Xiaomi CEO says firm to mass produce its own cars in H1 2024 -spokesperson

(Reuters) - Xiaomi Corp (1810.HK)Chief Executive Lei Jun said the Chinese
smartphone maker will mass produce its own cars in the first half of 2024, a
company spokesperson said on Tuesday.

The comments, which were made at a investor event, were first reported by
local media and later confirmed by the company.

Zang Ziyuan, a director in Xiaomi's international marketing department, also
posted the news on his verified Weibo account.

The date marks the next major target for the company's fledgling electric
vehicle (EV) division, which Xiaomi formally announced earlier this year.

Xiaomi shares jumped 5.4% to HK$22.50, the biggest daily percentage rise
since May 12, extending gains for the third straight session.

In March, Xiaomi said it would commit to investing $10 billion in a new
electric car division over the next ten years. The company completed the
business registration of its EV unit in late August. L4N2Q310P.

The company has ramped up hiring for the unit, though it has yet to reveal
if it will produce the car independently or via partnership with an existing
carmaker.

The Thomson Reuters Trust Principles.

Spotify to hire hundreds to drive ad sales in Europe, Australia, Canada

(Reuters) - Spotify (SPOT.N) is planning to hire hundreds of staff to boost
its advertising sales in Europe and elsewhere, as the music streaming
service looks to increase revenue from customers who don't pay a monthly fee
but make up the bulk of its user base.

"We are increasing our ads business marketing workforce by over 70% in
Europe, Australia and Canada ... and that's off a pretty sizable base," Lee
Brown, Spotify's head of advertising business, said in an interview.

"We're investing in our advertising business. As far as long-term strategy,
I think gone are the days of advertising being less than 10% of our overall
revenue."

Spotify has also hired an ad industry executive with 25 years of
international experience to lead international sales, Brown said, though he
did not give a name.

The company, which earns income from paid subscriptions and by disseminating
ads to non-paying users, saw its advertising business return to growth this
year after being hit by the pandemic.

Of its 365 million monthly active users, 210 million are ad-supported,
bringing in about 12% of its total revenue.

"An ad not only creates revenue for the firm, but it also lowers costs, as
it leads to fewer songs being played and, in turn, modestly lower royalties
to be paid," Morningstar analysts said.

A surge in podcast content - Spotify carried 2.9 million podcasts as of the
second quarter, up nearly 12% from the previous three months - has helped
boost ad revenue, as podcasts pull in more users and, being longer, allow
more time for ads.

The company is looking to add more tools for advertisers, and will make its
podcast advertising and publishing platform Megaphone available in Germany,
France, Spain and Italy.

Megaphone, bought by Spotify last year, offers tools for podcasters to
create ads for their own programmes, for which they receive income, and to
measure their reach. It currently hosts about a third of the top 200 shows
on Spotify and Apple (AAPL.O).

Spotify has been spending hundreds of millions to beef up its podcast
business. Its competition with Apple has intensified after both launched
paid subscription platforms for podcasters earlier this year.

The Swedish company is expected to overtake Apple in podcast listeners for
the first time this year, according to research firm eMarketer.

The Thomson Reuters Trust Principles.

Bitcoin nears record high ahead of futures ETF listing

(Reuters) - Bitcoin hit a six-month high and was within striking distance of
a record on Tuesday as traders bet an anticipated listing of a futures-based
U.S. exchange traded fund could herald investment flows into bitcoin and
cryptocurrency assets.

Bitcoin , the world's biggest cryptocurrency by market value, rose as far as
1.5% during the Asia session to $62,991, its strongest level since the
record peak of $64,895 in April.

It is up some 40% in October on hopes that the advent of bitcoin exchange
traded funds (ETF), of which several are in the works, will allow billions
of dollars managed by pension funds and other institutional investors to
flow into the sector.

ProShares' Bitcoin Strategy ETF is expected to list on Tuesday under the
ticker BITO, provided the U.S. regulator, the Securities and Exchange
Commission, does not object.

Analysts cautioned that the fund will not invest directly in bitcoin -
rather in Chicago-traded futures - and so may not have any immediate
implications for flows. But speculators have been wagering its launch is a
positive signal for spot prices anyway.

Bitcoin futures rose on Tuesday, last trading at $62,690, and spot prices
could rise if cash keeps flowing in, said cryptocurrency analysts at Arcane
Research.

"This could lead to more constant buying pressure on CME, causing the open
interest to rise. This will attract more cash and carry opportunities,
leading to buying pressure in the spot market," they said in a note.

Crypto ETFs have launched this year in Canada and Europe amid surging
interest in digital assets. VanEck and Valkyrie are among fund managers
pursuing U.S.-listed ETF products, although Invesco on Monday dropped its
plans for a futures-based ETF.

The Nasdaq on Friday approved the listing of the Valkyrie Bitcoin Strategy
ETF and Grayscale, the world's largest digital currency manager, is planning
to convert its Grayscale Bitcoin Trust (GBTC.PK) into a spot bitcoin ETF,
CNBC has reported.

ProShares ETF is set to begin trade on Tuesday after a 75-day period during
which the SEC could object to its listing elapsed on Monday.

Ether the second-largest cryptocurrency, has tracked bitcoin's rise and also
traded firmly on Tuesday. It was last up 1.2% at $3,790.

The Thomson Reuters Trust Principles.

Invest Wisely!

Bulls n Bears 

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INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

National Unity Day

December 22

Christmas Day

December 25

Boxing Day

December 26

Public Holiday in lieu of Boxing Day falling on a Sunday

December 27

Companies under Cautionary

ART

PPC

Starafrica

Fidelity

Turnall

Medtech

Zimre

Nampak Zimbabwe

 <mailto:info at bulls.co.zw> 

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