Major International Business Headlines Brief::: 07 September 2021

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Major International Business Headlines Brief::: 07 September 2021

 


 

 


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ü  Chip shortage could last into 2023, says car boss

ü  M&S warns of new food supplies threat as Brexit rules change

ü  World shares at record high as investors count on Fed largesse

ü  Goldman lines up $5 bln Petershill private equity asset float

ü  Allianz under investigation in Germany over investment funds

ü  Soros says BlackRock's China investments likely to lose money - WSJ

ü  Tiny chips cast big shadow over Munich car show

ü  El Salvador leads the world into cryptocurrency: bitcoin legal tender

ü  Chinese prosecutors drop case against former Alibaba employee accused of
sexual assault

ü  British sportscar maker Lotus plans China sales expansion to take on
Porsche

ü  London takes aim at New York with five-year financial plan

ü  Adecco buys France's QAPA for initial consideration of 65 mln euros

ü  Japan's July household spending rises less than expected

ü  Nigeria: What to Know About Mineral Exploration Licencing in Nigeria

ü  Nigeria: Just in - Court Dismisses FIRS' Suit Seeking to Stop Rivers Govt
>From Collecting Vat

ü  Uganda: Govt Bans Export of Raw Materials

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Chip shortage could last into 2023, says car boss

The chip shortage that is disrupting global car production could continue
into 2022 and even 2023, a leading German car industry figure has said.

 

Covid had been a stress test for the industry, which needed a thorough
review of its supply chains, Daimler chairman Ola Källenius said.

 

Supplies of semiconductor chips have been failing to meet demand in a wide
range of industries.

 

These include carmaking, which staged a quick recovery from the pandemic.

 

The shortages had caused shutdowns in Malaysia and would "significantly
impact production and sales in the third quarter", Mr Källenius, who is also
head of Mercedes-Benz, told the BBC at the International Mobility show in
Munich.

 

When is a motor show not a motor show?

Why is there a chip shortage?

"Chip producers say this will bleed into 2022 from a structural point of
view and then gradually get better," he added.

 

This meant the shortages could last into 2023, but "hopefully not at the
level of severity that we have experienced here in the last couple of
months", he said

 

Mr Källenius said Covid had been a "stress test" and a "traffic jam" for the
car industry. It would take a while before everything was moving again, he
added.

 

"But we will learn from this stress test and look even deeper into all the
tiers of the supply chain to make the system more robust," he said.

 

Also at the show was Harald Kroeger, a board member at Bosch - one of the
world's biggest parts and systems suppliers.

 

Mr Kroeger told the BBC that the main reason for the supply squeeze in the
car market was that demand had picked up "dramatically", which he said was
good news for the industry.

 

"Just one year ago, we were in the dark age of Corona and and sales were
down and nobody expected such a quick recovery of the car market," he said.

 

"And now definitely we're running to try to fulfil that demand."-BBC

 

 

M&S warns of new food supplies threat as Brexit rules change

Marks & Spencer has warned of a range of problems for food imports to the UK
when Brexit rules change next month.

 

In a letter to suppliers, it said UK and EU bodies were not ready for new
paperwork needed next month when a grace period on import checks ends.

 

It said in some EU states, offices were not open at weekends, which would
cause "significant disruption" to imports.

 

Supply chains in the UK are already under stress due to shortages of lorry
drivers and other staff.

 

The new rules mean lorry drivers importing goods will need some 700 pages of
documents.

 

In a letter to suppliers, first reported by the Times, M&S set out a wide
range of problems, including a lack of vets for essential checks,
governments' unpreparedness - in some cases having not translated the rules
into local languages, while it says some authorities "do not appear to know
what will be required".

 

It also said suppliers had expressed concern that in some EU states,
officials who issue Export Health Certificates - needed for trade in animal
products - only work standard office hours from Monday to Friday.

 

As "modern food systems rely on importing food seven days a week... this
working pattern will cause significant disruption to that import schedule
and exacerbate the HGV driver shortage".

 

M&S says EU markets represent over 25% of all UK food imports, adding "If we
don't see a more common sense approach to compliance, this is going to hurt
everyone involved".

 

As well as EU member countries importing into Great Britain, the issue will
markedly affect goods crossing from Great Britain into Northern Ireland.

 

Currently, supermarkets which send products to Northern Ireland from Great
Britain face only light-touch checks, under a so-called "grace period" which
delayed some of the new post-Brexit processes.

 

The Northern Ireland Protocol helps prevent the need for checks on the
island of Ireland's internal border.

 

M&S says unless matters are simplified, there is a "real danger of
disruption and delay at the EU to GB border that will lead to significant
food waste across the sector, reductions in range and availability, and
inflationary pressures".

 

Although reports have emerged that the UK government is expected to announce
further delays to some of the Irish Sea border checks this week.

 

M&S warned in July it had already cut Christmas products in Northern Ireland
due to concerns over the forthcoming post-Brexit customs checks.

 

Its chairman, former Conservative party MP, Archie Norman, said once
light-touch export checks end, there would be "gaps on the shelves"
there.-BBC

 

 

World shares at record high as investors count on Fed largesse

(Reuters) - Global stocks inched higher on Tuesday to a record high for the
eight straight session as investors wagered the U.S. Federal Reserve is
likely to delay the start of tapering its asset purchases after the soft
U.S. jobs data.

 

Japanese shares extended their bull run on hopes the ruling Liberal
Democratic Party will compile additional economic stimulus and easily win an
upcoming general election after the country's unpopular Prime Minister
Yoshihide Suga said he would quit. read more

 

Tokyo's Nikkei (.N225) rallied as much as 1.3%, moving past the
psychological barrier of 30,000 for the first time since April, also helped
by a reshuffle in the Nikkei.

 

Mainland Chinese shares (.SSEC), (.CSI300) were little changed in early
trade while MSCI's ex-Japan Asian-Pacific index (.MIAPJ0000PUS) was down
0.1%

 

The world's shares, measured by MSCI's gauge of 50 markets (.MIWD00000PUS),
tacked on 0.1% to log its eighth consecutive day of gains to record highs.

 

The latest rally, which started after Federal Reserve Chair Jerome Powell's
dovish speech at Jackson Hole Symposium late last month, received a further
boost from a surprisingly soft U.S. payrolls report on Friday.

 

The U.S. economy created 235,000 jobs in August, the fewest in seven months
as hiring in the leisure and hospitality sector stalled, reducing
expectations of an early tapering by the Fed. read more

 

That was way below economists' forecast of 728,000.

 

 

"It's the service sector that is losing steam and that clearly shows the
impact of Delta variant. And the Fed has no reason to insist on tapering
this year if the Delta variant is having an impact. After all its policy
moves are contingent on job recovery," said Norihiro Fujito, chief
investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

 

U.S. S&P 500 futures were 0.1% higher from Friday's close after the U.S.
holiday on Monday. Bond prices eased slightly, pushing up their yields, with
the 10-year U.S. Treasuries yielding 1.339% , up 1.3 basis points.

 

In the currency market, the euro changed hands at $1.1884 , a tad below
Friday's one-month peak of $1.1909 while the yen was little moved at 109.76
yen to the dollar .

 

The Australian dollar fetched $0.7455 , not far from its 1-1/2-month high of
$0.74775 set on Friday. The immediate focus is on the Reserve Bank of
Australia's policy meeting later in the day and on whether it will stick to
its plan to start tapering its bond purchase this month.

 

Oil prices fell after Saudi Arabia's sharp cuts to crude contract prices for
Asia revived concerns over the demand outlook.

 

U.S. crude futures dropped 0.6% to $68.90 per barrel.

 

The Thomson Reuters Trust Principles.

 

 

Goldman lines up $5 bln Petershill private equity asset float

(Reuters) - Goldman Sachs (GS.N) plans to float the assets of its Petershill
Partners unit, hoping to cash in on a private equity boom with an IPO
valuing the investment vehicle at more than $5 billion.

 

Petershill, which takes minority stakes in alternative assets managers
including private equity, venture capital and hedge funds, will be a
standalone company operated by the Goldman Sachs Asset Management team, it
said on Monday.

 

The deal will consist of a sale of around $750 million of new shares as well
as existing ones to give Petershill a free float of at least 25% and make it
eligible to be included in FTSE indices.

 

Goldman Sachs declined to give an estimated market value for the unit, but a
source close to the deal said analysts put it at in excess of $5 billion.

 

The listing is slated to take place around a month from now, the source
said.

 

The U.S. bank chose London to list because Petershill was founded in the
British capital and because the financial centre's vibrant capital markets
offer a strong fundraising opportunity, the source added.

 

The London Stock Exchange has had a strong run of initial public offerings
(IPOs) in the first half of this year, with new companies raising $12.77
billion in the first seven months of 2021, the highest in seven years,
Refinitiv data shows.

 

PE BOOM

 

Private equity funds have soared in value over the past year as money pours
in from investors looking for higher returns when interest rates are so low.

 

In July, British buyout firm Bridgepoint listed in London, with its shares
now up more than 40% from its debut price, while France's Antin
Infrastructure Partners launched its own IPO last week.

 

For investors, such companies offer an attractive hedge against the
traditional stock and bond markets and give them access to private deal
activity, which has exploded in recent years.

 

"The environment is quite fortuitous for private equity at the moment,
especially with rates looking likely to stay lower for longer," Susannah
Streeter, an analyst with Hargreaves Lansdown, said.

 

"PE firms have also been swooping on UK assets and there might be real
interest in getting in on that action without taking on the risk
individually," she added.

 

The Petershill business takes advantage of its relationship with Goldman
Sachs to source attractive acquisitions in alternative asset management.

 

Profits from Petershill will go to its institutional investors, while
Goldman Sachs will earn an operator fee for managing the company.

 

Petershill itself has no fixed assets but holds positions in 19 alternative
asset managers with combined assets under management of $187 billion.

 

It pivoted its investment strategy to focus on technology in 2017 and is now
shifting to focus on the effects of the COVID-19 pandemic by investing in
areas such as healthcare, balance sheet repair and environmental, social and
governance (ESG).

 

The Thomson Reuters Trust Principles.

 

 

Allianz under investigation in Germany over investment funds

(Reuters) - German regulators have launched an investigation into the
country's biggest financial company, Allianz (ALVG.DE), after the demise of
some of its U.S. investment funds last year, people with direct knowledge of
the matter told Reuters.

 

The move heightens the pressure on the insurer, which is already facing a
slew of investor lawsuits over its Structured Alpha Funds and related
investigations by the U.S. Department of Justice (DOJ) and Securities and
Exchange Commission (SEC).

 

The German insurer is one of the world's biggest money managers with 2.4
trillion euros ($2.9 trillion) in assets under management through bond giant
Pimco and Allianz Global Investors, which managed the funds at the centre of
the probes.

 

The investigation by Germany's financial regulator, BaFin, is across
multiple departments of the institution, several sources said, speaking on
condition of anonymity as the investigation is ongoing.

 

 

BaFin officials are examining the extent to which Allianz executives outside
the fund division had knowledge of, or were involved in, events leading up
to the funds racking up billions of dollars of losses, the people said.

 

An Allianz spokesperson declined to comment on the BaFin investigation.

 

The sources said the German investigation was currently in a fact-finding
phase and involved multiple people, but had picked up pace since Allianz
announced the DOJ probe on Aug. 1. read more

 

The insurer said last month that it had reassessed the risks related to the
funds after being approached by the DOJ and had concluded that the matter
could materially hit its future financial results.

 

The various investigations and lawsuits revolve around Allianz Global
Investor's Structured Alpha Funds, which catered to U.S. pension funds for
workers such as teachers and subway employees. The funds were also marketed
to European investors.

 

After the coronavirus pandemic sent markets into a tailspin, the funds
plummeted, in some cases by 80% or more.

 

The losses from bad bets on options were so extreme that Allianz closed two
funds in March 2020 which were worth $2.3 billion at the end of 2019. Losses
at others caused some investors to withdraw what was left of their money.

 

Investors have now lodged 25 lawsuits claiming $6 billion in damages, saying
Allianz strayed from its strategy of providing downside protection for
market crashes. Allianz's lawyers have said the investors were sophisticated
and aware of the risks.

 

($1 = 0.8428 euros)

 

The Thomson Reuters Trust Principles.

 

 

Soros says BlackRock's China investments likely to lose money - WSJ

(Reuters) - Billionaire investor George Soros said BlackRock Inc (BLK.N)
investing billions of dollars into China now is a "mistake" and will likely
lose money for the asset manager's clients, according to an opinion piece in
the Wall Street Journal.

 

"Pouring billions of dollars into China now is a tragic mistake," Soros
wrote in the op-ed. "It is likely to lose money for BlackRock's clients and,
more important, will damage the national security interests of the U.S. and
other democracies."

 

Last month, BlackRock became the first foreign asset manager to operate a
wholly owned mutual fund business in China, tapping the fast-growing $3.6
trillion retail fund market. This also comes after the government scrapped a
foreign ownership cap in the industry on April 1, 2020. read more

 

Soros said BlackRock has drawn a distinction between the country's
state-owned enterprises and privately owned companies that is far from
reality, according to the opinion piece.

 

BlackRock did not immediately respond to a Reuters request for comment.

 

Investors in China have been rattled by a flurry of regulatory crackdowns
this year targeting sectors ranging from technology to private tutoring,
which have wiped out close to $1 trillion in market value since February.
read more

 

The Thomson Reuters Trust Principles.

 

 

Tiny chips cast big shadow over Munich car show

(Reuters) - As carmakers gathered in Munich on Monday to launch almost
exclusively zero- or low-emission vehicles, an ongoing semiconductor
shortage cast a long shadow over the first major car show since before the
pandemic began.

 

Forced to shut down plants last year, carmakers now face increasing
competition from the consumer electronics industry for chip deliveries. That
problem has been compounded by a series of supply chain disruptions during
the pandemic.

 

Cars have become increasingly dependent on chips - for everything from
computer management of engines for better fuel economy to driver-assistance
features such as emergency braking.

 

Speaking during the launch of a couple of electric vehicles (EVs) on Sunday
evening, Ola Källenius, CEO at premium German carmaker Daimler AG
(DAIGn.DE), said that while the company is hopeful its own supply will
improve in the fourth quarter, soaring demand for chips means the industry
could struggle to source enough of them into 2023 - though the shortage
should be less severe by then.

 

"Several chip suppliers have been referring to structural problems with
demand," Källenius said. "This could influence 2022 and (the situation) may
be more relaxed in 2023."

 

Joerg Burzer, head of supply chain at Daimler's carmaking unit
Mercedes-Benz, said he was hoping the situation would stabilise in the
fourth quarter. "Relaxation will come later."

 

The IAA Mobility show in Munich is the first major motor industry event
worldwide since the global coronavirus pandemic.

 

Despite the ongoing shortage, Daimler board member Britta Seeger said the
carmaker does not believe its long-term electric vehicle goals will be
affected.

 

Automakers from U.S. group General Motors (GM.N) to India's Mahindra
(MAHM.NS) and Japan's Toyota (7203.T) have slashed output and sales
forecasts due to scarce chip supplies, made worse by a COVID-19 resurgence
in key Asian semiconductor production hubs.

 

Just last week, Chinese EV maker Nio Inc (NIO.N) cut its delivery forecast
for the third quarter due to uncertain and volatile semiconductor supplies.

 

Renault (RENA.PA) CEO Luca De Meo said on Monday the chip shortage had been
tougher than expected during the current third quarter, but said the
situation should improve in the fourth quarter.

 

Major auto supplier Bosch (ROBG.UL) said it expects the shortage will ease
somewhat in the coming months, but supplies will remain constrained into
next year.

 

BMW (BMWG.DE) CEO Oliver Zipse said the premium carmaker expects supply
chains to remain tight well into 2022.

 

"I expect that the general tightness of the supply chains will continue in
the next 6 to 12 months," he said.

 

The Thomson Reuters Trust Principles.

 

El Salvador leads the world into cryptocurrency: bitcoin legal tender

(Reuters) - El Salvador on Tuesday became the first country in the world to
adopt bitcoin as legal tender, a real-world experiment proponents say will
lower commission costs for billions of dollars sent home from abroad but
which critics warned may fuel money laundering.

 

The plan spearheaded by the young, charismatic and popular President Nayib
Bukele is aimed at allowing Salvadorans to save on $400 million spent
annually in commissions for remittances, mostly sent from the United States.

 

Last year alone remittances to El Salvador amounted to almost $6 billion, or
23% of its gross domestic product, one of the highest ratios in the world.

 

Polls show Salvadorans are skeptical about using bitcoin and wary of the
volatility of the cryptocurrency that critics say could increase regulatory
and financial risks for financial institutions. Still, some residents are
optimistic. read more

 

"It's going to be beneficial ... we have family in the United States and
they can send money at no cost, whereas banks charge to send money from the
United States to El Salvador," said Reina Isabel Aguilar, a store owner in
El Zonte Beach, some 49 km (30 mi) southwest of capital San Salvador.

 

El Zonte is part of the so-called Bitcoin Beach geared toward making the
town one of the world's first bitcoin economies.

 

In the run-up to the launch, the government has already been installing ATMs
of its Chivo digital wallet that will allow the cryptocurrency to be
converted into dollars and withdrawn without commission, but Bukele on
Monday looked to temper expectations for quick results and asked for
patience.

 

"Like all innovations, El Salvador's bitcoin process has a learning curve.
Every road to the future is like this and not everything will be achieved in
a day, or in a month," Bukele said on Twitter, a platform he often uses to
talk up his achievements or excoriate opponents.

 

On Monday, El Salvador bought its first 400 of the cyrptocurrency,
temporarily pushing prices for bitcoin 1.49% higher to more than $52,680.
read more The cryptocurrency has been notoriously volatile. Just this
spring, it rose over $64,000 in April and fell almost as low as $30,000 in
May.

 

Some analysts fear the move to make bitcoin legal tender alongside the U.S.
dollar could muddy the outlook for El Salvador's quest to seek a more than
$1 billion financing agreement with the International Monetary Fund (IMF).

 

After Bukele's bitcoin law was approved, rating agency Moody's downgraded El
Salvador's creditworthiness, while the country's dollar-denominated bonds
have also come under pressure.

 

But Bukele, who does not shy away from controversy, on Monday retweeted a
video that showed face superimposed on actor Jaime Foxx in a scene from
Django Unchained, Quentin Tarantino's film about American slavery. The video
portrayed Bukele whipping a slave trader who had the IMF emblem emblazoned
on his face.

 

Bukele later deleted the retweet.

 

His own tweet said: "we must break the paradigms of the past. El Salvador
has the right to advance towards the first world."

 

The Thomson Reuters Trust Principles.

 

 

Chinese prosecutors drop case against former Alibaba employee accused of
sexual assault

(Reuters) - Chinese prosecutors have dropped a case against a former Alibaba
Group Holding Ltd (9988.HK) employee accused of sexually assaulting a female
colleague, saying they had determined he had committed forcible indecency
but not a crime.

 

The employee, identified by his surname Wang, was detained by police last
month after a female Alibaba employee posted an 11-page account on Alibaba's
intranet saying a manager and a client sexually assaulted her during a
business trip to eastern China's Jinan city. read more

 

She said superiors and human resources did not take her report seriously,
triggering a fierce public backlash against the e-commerce giant, which
later fired Wang and suspended other executives.

 

Prosecutors have, however, approved the arrest of the client who has been
identified by his surname Zhang.

 

Reuters was unable to reach Wang or Zhang for comment.

 

Alibaba said in response to the decision by prosecutors that it has a
zero-tolerance policy for sexual misconduct.

 

Alibaba dismissed 10 employees for sharing screen shots of the female
colleague's account of sexual assault allegations, Bloomberg News reported
last month, citing people familiar with the matter. 

 

The Thomson Reuters Trust Principles.

 

 

British sportscar maker Lotus plans China sales expansion to take on Porsche

(Reuters) - British sportscar maker Lotus plans to open up to 70 showrooms
in China by 2024 and start production at its new Wuhan factory next year to
ramp up competition with rival Porsche, Chief Executive Feng Qingfeng told
Reuters on Tuesday.

 

Premium and luxury car sales are growing in China as coronavirus pandemic
travel restrictions leave consumers in the world's biggest car market with
more money to spend. read more

 

Feng said Lotus, which is owned by Chinese firm Geely (GEELY.UL) and
Malaysia's Etika Automotive, would begin production at its Wuhan factory
next year, producing around 2,000 compact SUVs.

 

The plant, which is still under construction, would ramp up to full
production of 20,000 cars in 2023, Feng told Reuters in a telephone call
from Hangzhou, where Geely is headquartered.

 

The cars will be positioned in a similar segment to rival Porsche
(PSHG_p.DE) and higher than BMW (BMWG.DE) and Audi, Feng said. Porsche has
said it sold 88,968 cars in China last year thanks to demand for its Macan
compact sports-utility vehicle.

 

Feng said Lotus would open more than 20 showrooms next year, first targeting
major cities like Beijing and Shanghai. It would expanding the network
further over 2023 and 2024 to include cities like eastern Suzhou and Ningbo
for a total of 50-70 showrooms around the country.

 

Lotus, the maker of the Lotus Esprit, famously driven by James Bond in
1977's "The Spy Who Loved Me", currently has four showrooms in China,
according to its website.

 

Lotus said its Wuhan-based technology unit recently received an undisclosed
investment from Nio Capital, an investment firm founded by the chief
executive of leading Chinese electric vehicle maker Nio Inc (NIO.N). The
technology unit is valued at 15 billion yuan ($2.32 billion).

 

($1 = 6.4558 Chinese yuan renminbi)

 

The Thomson Reuters Trust Principles.

 

 

 

London takes aim at New York with five-year financial plan

(Reuters) - Britain needs to ease taxes on banks and make it easier to hire
staff from abroad, its financial and professional services lobby said in a
blueprint to help London unseat New York as the world's top international
financial centre within five years.

 

The strategy paper on Tuesday from TheCityUK reiterated some ideas already
aired in government-backed reports and elsewhere in recent months as the
City of London looks to recoup ground lost following Britain's departure
from the EU. read more

 

"By some metrics, the UK is losing ground: London is currently slipping
further behind New York each year while other centres are strengthening,"
the paper said.

 

The U.S. financial capital overtook London in 2018 in a leading annual
survey, it said, adding that New York dominated in stock market listings.

 

"The UK therefore needs to adopt a relentless focus on strengthening its
international competitiveness to win back the prize of being the world's
leading international financial centre," TheCityUK lobby group, which
promotes the wider financial sector abroad, paper added in the paper.

 

Britain's departure from the European Union effectively closed London off
from its biggest financial services customer, adding further pressure to
catch up.

 

The finance ministry has already set out reforms to make London's capital
market more competitive, and TheCityUK set a five-year target for London to
"out-compete its rivals" by amending tax, visa and other rules.

 

Becoming the global hub for financial data, sustainability investing and
investment and risk management will also be crucial in helping Britain
overtake New York, TheCityUK said.

 

The total tax rate for a London bank is 46.5%, 13% higher than a New York
based bank, it added.

 

But persuading government to cut taxes on finance as it mends a hole in the
economy from COVID may be challenging, as will having an open door on hiring
given the Brexit referendum pledged to crack down on high levels of
international mobility.

 

The single most important issue for financial firms is being able to hire
globally, TheCityUK CEO Miles Celic said.

 

"In conversations we have had with government, I think that is something
that is absolutely understood," he told reporters.

 

The Thomson Reuters Trust Principles.

 

 

Adecco buys France's QAPA for initial consideration of 65 mln euros

(Reuters) - Adecco Group (ADEN.S) is buying QAPA, France's second-largest
provider of digital workforce solutions, for an initial consideration of 65
million euros ($77.2 million), the Swiss staffing group said on Tuesday.

 

QAPA had 45 million euros in turnover in the 12 months to the end of June
2021 and has around 60 employees. In 2020, revenues rose nearly 90%
year-on-year "and are expected to continue to grow vigorously", Adecco said.

 

($1 = 0.8422 euros)

 

The Thomson Reuters Trust Principles.

 

 

Japan's July household spending rises less than expected

(Reuters) - Japan's household spending grew less than expected in July as a
resurgence in COVID-19 cases hindered consumer activity, throwing broader
economic recovery prospects into doubt.

 

The world's third-largest economy is struggling to shake off the impact of
the coronavirus pandemic, which forced the government to impose new state of
emergency restrictions that now cover about 80% of the population.

 

Household spending rose 0.7% year-on-year in July, after a revised 4.3% fall
in June, government data showed on Tuesday. That was weaker than a median
market forecast for a 2.9% gain in a Reuters poll.

 

The modest rise in July was partly due to a sharp contraction in the same
month last year, when household spending slumped 7.6% year-on-year as
consumers delayed spending on things such as travel and overnight stays due
to the health crisis.

 

The month-on-month figures showed a 0.9% contraction in July, the third
straight month of decline, the internal affairs ministry data showed,
dashing expectations for 1.1% growth.

 

"Face-to-face leisure services stayed weaker with worsening COVID-19
infections and the reinstatement of state of emergency curbs in Tokyo," said
Masato Koike, an economist at Dai-ichi Life Research Institute.

 

"Going forward, the tug-of-war between worsening infections and vaccination
will keep services spending volatile."

 

Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute,
said continued infections could have dragged private consumption even lower
in August.

 

 

Spending on food, leisure and transportation rose year-on-year while
spending on consumer electronics, utility payments and face masks fell.

 

Separate data on Tuesday showed inflation-adjusted real wages in July rose
0.7% from the same month a year earlier, though the gain was also because of
a flattered comparison with last year's steep pandemic-driven drop.

 

But the data was unlikely to dispel worries that Japan's economy is at risk
of slowing down in the third quarter, as explosive growth in COVID-19 cases
at home and in other parts of Asia weighs on consumer and corporate
activity.

 

Revised gross domestic product (GDP) data on Wednesday is expected to show
the economy grew faster than initially reported in the second quarter,
helped by stronger business spending.

 

The Thomson Reuters Trust Principles.

 

 

Nigeria: What to Know About Mineral Exploration Licencing in Nigeria

The right to explore or exploit minerals in Nigeria is evidenced by the
grant of a mineral title.

 

In a bid to regulate all aspects of exploration and exploitation of solid
minerals in the country, the Nigerian government in 2007 re-enacted the
Nigerian Mineral and Mining Act.

 

The step was also aimed at fostering the growth and development of the
sector.

 

The Act vested the ownership and control of all lands in which minerals are
found in commercial quantities in the government of the federation and
thereby prohibits unauthorised persons from exploration or exploitation of
these mineral resources.

The right to explore or exploit minerals in Nigeria is evidenced by the
grant of a mineral title.

 

Application for a mineral title in Nigeria can be done by a qualified
applicant under the Act and in accordance with the Nigerian Minerals and
Mining Regulations (NMMR) and the submission of an irrevocable consent form
by land owners or occupiers.

 

Mining cadastre office

 

The Mining Cadastre Office (MCO), an agency under the supervision of the
federal ministry of mines and steel development, is responsible for the
administration and management of mineral titles and the maintenance of
cadastral registers.

 

The agency issues, grants, suspends, and upon written approval of the
minister, revokes any mineral title where a title holder fails to pay a
prescribed fee such as the annual fee.

It also keeps a chronological record of all applications for mineral titles
in a priority register, which ensures the agency treats all applications on
a first come first served basis and equally applies the principle of 'use it
or lose it' to mineral titles.

 

However, an application for a mineral title may be refused where in the case
of an individual is under the age of 18 years or is an undischarged bankrupt
or otherwise declared bankrupt under any written law or has been convicted
of a criminal offence under the act or regulations.

 

Also, it is noteworthy to know that no title can be revoked without giving a
prior notice of 30 days to any defaulter, sent to a registered address.

 

Guidelines

 

Mineral titles are awarded in Nigeria by title applications or through a
bidding process.

 

The processes involved in application include submission of an online
application which is subject to review and evaluation.

 

The application may be successful or declined depending on the criteria met.
Upon a successful application, the applicant is required to pay the
necessary fees and the licence is issued thereafter.

 

For the bidding process, adverts are placed in national dailies for
designated areas by the minister for exploration licence and mining lease
only.

 

Interested investors are required to provide necessary information that
would be reviewed by the committee set up for the bidding process. A winner
emerges and is issued a licence after payment is made for the prescribed
fees.

 

Mining rights

 

The right to search for or exploit any mineral in Nigeria is governed by
different mineral titles. The titles obtainable in the country are the
Reconnaissance Permit (RP), Exploration licence (EL), Small Scale Mining
Lease (SSML), Mining Lease (ML) and Quarry Lease (QL) the Water Use Permit.

 

Reconnaissance Permit

 

This permit allows holders to search for mineral resources on a
non-exclusive basis.

 

It gives the right to obtain access into, enter on or fly over any land
within the territory of Nigeria, likewise the permission to obtain and
remove surface samples in small quantities which must be conducted in an
environmentally and socially responsible manner.

 

Upon the payment of a prescribed fee, the MCO is subjected to approve
applications from qualified applicants within 30 days of receipt of
application with a processing fee of N50,000 payable to MCO through
remittal. However, excavation drilling and other subsurface activities are
not permitted.

 

Reconnaissance Permit is non-transferable and it's issued for only one year
but renewable annually.

 

Exploration licence

 

The holder of an Exploration Licence (EL) has the exclusive right to conduct
exploration upon the land within the area of his licence. The mining area
for EL usually doesn't exceed 200 square kilometres with a processing fee of
N100,000 payable to MCO through remittal.

 

The MCO, under the law is obliged to approve the EL within 30 days of
receipt of an application by a qualified applicant.

 

The holder is allowed to remove, conduct bulk sampling and testing, export
and sell mineral resources not exceeding established limits. The licence is
for a 3-year initial period but renewable two further periods of 2 years
each. Each additional Cadastre Unit costs N1000.

 

Quarry Lease

 

This permit gives liability to exploit all naturally occurring minerals such
as clay, marble, gypsum, limestone, gravel, sand, among others.

 

The lease is issued for five years and renewable every five years, provided
the renewal application is made months before the lease expires. The sum of
N100,000 is made for the processing fee payable to MCO through remittal for
a land not exceeding 4 Cadastral Units. Each additional Cadastral Unit costs
N50,000

 

The application is processed within 45 days of receipt of application.

 

Small Scale Mining Lease

 

The holder of the Small Scale Mining Lease has the exclusive right to carry
out small-scale mining operations within a mining area greater than five
acres but less than three kilometer square for a period of five years
initial period but renewable for further period of five years only.

 

The lease is issued within 45 days of application with a processing fee of
N50,000 payable to the MCO through remittal. Each additional Cadastre Unit
costs N20,000.

 

However, when the level of operation of a SSML exceeds the defined area, the
holder shall convert such a lease to a Mining lease by submitting a written
application to the MCO.

 

Application Requirements for Exploration Licence, Quarry Lease and Small
Scale Mining Lease

 

Mining Lease

 

The holder of this lease can exclusively use, occupy and exploit minerals
within the lease area not exceeding 50 Kilometres Square.

 

The lease is granted within 45 days of receipt of application with a
processing fee of N500,000. It is issued for a period of 25 years initial
period and renewable every 24 years.

 

Water Use Permit

 

This is granted to the holders of Exploration Licence, Quarry Lease, Small
Scale Mining Lease and Mining Lease who require the use of water for their
operations.

 

Statistics

 

Nigerian Extractives Industries Transparency Initiatives (NEITI)'s five year
trend analysis report on the issuance of mining titles shows that a total of
6,360 licences and leases were issued between 2015 and 2019.

 

In 2015, 1,047 licences were issued; 1,153 licences were issued in 2016;
1,484 in 2017; 1,380 in 2018, and 1,296 licences were issued in 2019.

 

Of all the licences issued in the five-year period, exploration licence
recorded the highest issuance, accounting for 43.51 per cent (2,763) while
mining lease accounted for 1.98 per cent (126) to rank the least issued
licence. Small Scale Mining Lease accounted for 35.79 per cent (2,276) while
Quarry Lease accounted for 18.73 per cent (1,191).

 

Nigeria possesses vast mineral resources spread across the 36 states and the
Federal Capital Territory (FCT) which are categorised as energy, industrial,
metallic ores and precious stones.

 

The federal ministry of mines and steel development is an agency set up to
unlock the economic potentials of the solid minerals sub-sector in
Nigeria.-Premium Times.

 

Nigeria: Just in - Court Dismisses FIRS' Suit Seeking to Stop Rivers Govt
>From Collecting Vat

A Federal High Court sitting in Port Harcourt, Rivers State, has dismissed a
suit by the Federal Inland Revenue Service, FIRS, seeking to stop the Rivers
State Government from commencing collection of Value Added Tax, VAT.

 

FIRS in suit no FHC/PH/CS/149/2020 had approached the court seeking a Stay
of Execution on the earlier judgement of the court that stopped FIRS from
collecting VAT as it was constitutionally the role of state governments.

 

The FIRS had following the judgement against them sought the high court to
stop the Rivers State Government from executing the judgement.

 

But, Justice Stephen Dalyop Pam, in his ruling Monday, said granting the
application would negate the principle of equity.

 

Pam noted that in as much as the state government and the state legislature
has enacted a law in respect of the VAT that courts were bound to obey laws.

He noted that the Rivers State Government and the State Assembly, has duly
enacted Rivers State Value Added Tax No. 4, 2021, which makes it a
legitimate right of the state to collect VAT.

 

The judge said law remained valid until it has been set aside by a court of
competent jurisdiction, adding that the law enacted by the Rivers State
legislature remained valid

 

Pam, however, said granting the prayers of FIRS would amount to committing
murder, noting that the prayers cannot stand and dismissed same.

 

Earlier, Justice Pam had read a who presided read a letter that FIRS lawyers
had served the court seeking for stay of any ruling on their application.

 

But, in the absence of any requisite document that ought to have been
attached to the letter, the Judge dismissed the letter.

 

Meanwhile, the Counsel for Rivers State Government, Mark Agu, commended the
court for standing for justice, noting that the state assembly had already
made a standing law on VAT.

Agu disclosed that FIRS had approached the court with two prayers but that
they withdrew the first prayer seeking for injunction and wanted the court
to stay the execution of that judgement.

 

He said: "The first Defendant, FIRS, sent their appeal against the judgement
of the Honourable court delivered wherein the court allowed the Rivers State
Government to collect their VAT.

 

"Subsequently after the judgement Rivers State has its own law on that, the
Rivers State Law on VAT No. 4, 2021. Having appealed, they were asking for
an injunction and secondly asking for stay on the judgement.

 

"Today, the court has delivered its ruling dismissing the said application
for stay, though, without cost.

 

"The court's reasoning is that if it should grant stay it is more or less
like overruling itself and the court is empowered to recognize all laws
enacted by the national assembly or the state house of assembly, therefore
the law stands as substantive.

"Therefore the issues of collection of VAT as it stands today Rivers State
is still entitled to still collect."

 

But, counsel for FIRS, Reuben Wanogho, expressed displeasure with the stand
of the court, noting that FIRS would not hesitate to appeal the ruling.

 

Wanogho said: "The court has delivered its ruling on the bases of how it saw
the facts of the case. We do not agree with the ruling and we will take all
necessary steps to challenge it. That is why the appellate System is there.

 

"The appellate System is there to enable us ventilate out grievances if for
any reasons the court makes a pronouncement me we do not agree with it.

 

"For sure we feel that the ruling should have gone in our favour but, the
court has taken a position against us, so we will do the needful by taking
it up immediately before the court of appeal.

 

"We will challenge it. And we are hopeful that at the court of appeal we
should be able to find our way. The appeal system is there to correct
errors.

 

"The natural consequences of the ruling is that the Rivers State Government
will be collecting the VAT, but we will take steps to ensure that we
amelioration situation as quickly as possible."-Vanguard.

 

 

Uganda: Govt Bans Export of Raw Materials

The Ministry of Trade, Industry and Cooperatives has banned exportation of
raw materials starting this financial year.

 

During a press conference last week, the State Minister for Trade, Ms
Harriet Ntabazi, said 69 per cent of raw materials in the country are
exported hence causing revenue loss, adding that the move will improve the
manufacturing sector.

 

She said the ministry has negotiated a Shs100b loan from development
partners and sourced another Shs100b given to Uganda Development Bank this
financial year to give to traders.

 

"Government has banned exports of unprocessed raw material starting this
financial year to encourage adding of value on all raw materials before
exporting them, so this money will help traders embrace value addition," Ms
Ntabazi said.

 

She said the main plan of government is to turn all traders into
industrialists to boost manufacturing.

Ms Ntabazi said her ministry is in discussions with Finance to give new
local investors tax holidays.

 

She said increased taxation has affected traders yet the current lockdown
has had adverse negative impacts on them.

 

The minister condemned the increase of taxes on garments from 25 per cent to
33 per cent by Finance ministry, adding that this affects consumption both
internally and externally.

 

Dr Joseph Denis Walusimbi, the dean of faculty business and management at
Victoria University, welcomed the move, saying it will ease the cost of
doing business.

 

He said the country is ranked in 176 in cost of doing business in East
Africa behind Rwanda 136 and Kenya 150.

 

"This move will impact positively on strengthening regional and
international trade for creating a conducive atmosphere of doing business,"
Dr Walusimbi said.

 

He added that raw material exports are bought at a low price, but are three
times the price when imported as a finished product .-Monitor.

 

 

 

 

 


 


 


 

 

 

 


 

INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


BAT

Analyst Briefing

H1 Virtual

September 7 -1230pm

 


Hippo

AGM

virtual

September 17 -  (9am)

 


Star Africa

AGM

virtual

September 23 -11am

 


 

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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