Major International Business Headlines Brief::: 21 September 2021

Tue Sep 21 11:30:44 CAT 2021

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Major International Business Headlines Brief::: 21 September 2021

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

ü  Evergrande: Asia stocks down as investors weigh China concerns

ü  Bitcoin mining producing tonnes of waste

ü  Evergrande: Embattled China property giant sparks economy fears

ü  Government borrowing falls in August

ü  Pimlico Plumbers sold to US firm Neighborly

ü  JPMorgan takes on British rivals with launch of digital bank Chase

ü  Europe's low-cost carriers to drive jet demand over next 20 yrs -Boeing

ü  External review finds deeper rot in World Bank 'Doing Business' rankings

ü  UK's Johnson discussed taxation with Amazon's Bezos

ü  AstraZeneca to invest $360 mln in Irish drug manufacturing site

ü  BMW, Daimler sued for refusing to tighten carbon emissions targets -
Handelsblatt

ü  UK transport group National Express in takeover talks to buy rival
Stagecoach

ü  Kingfisher profit jumps 62% on home improvement boom

ü  Shell exits Permian with $9.5 bln Texas shale sale to ConocoPhillips

ü  Tanzania: Blocks Trading Push Up Dse Turnover

 <mailto:info at bulls.co.zw> 

Evergrande: Asia stocks down as investors weigh China concerns

Asian stock markets were down on Tuesday amid concerns around Chinese
property group Evergrande and the impact on China's financial system.

Japan's benchmark Nikkei 225 index was almost 2% lower, while the Hang Seng
in Hong Kong dipped by 0.8%.

The Dow Jones index in the US ended Monday's trade 1.8% lower.

That followed similar falls in Europe, with Germany's Dax index losing 2.3%,
and the Cac 40 in France down 1.7%.

Major stock exchanges in mainland China were closed on Monday and Tuesday
for the annual mid-Autumn festival.

Monday's sell-off was primarily driven by concerns that Evergrande - one of
China's biggest property developers - is struggling to meet interest
payments on more than $300bn of debts.

Regulators in China warned it could spark broader risks to the country's
financial system. And investors fear this could hit big banks exposed to
Evergrande and companies like it, causing contagion in global markets.

It comes as the global economy is still recovering from the impact of the
coronavirus.

'China's Lehman moment'

"The fear of an Evergrande bankruptcy appears to be leading to concern about
China's very own Lehman [Brothers] moment, and a big overspill across the
region," said Michael Hewson of CMC Markets.

Investors are also nervous that the US Federal Reserve, which meets on
Tuesday and Wednesday, will confirm plans to cut back support for the US
economy this year.

Global stocks have rallied as economies reopen and central banks have
provided trillions of dollars in support to boost growth.

But there are concerns of a decline, if support is taken away at a time when
the Delta variant continues to drag on recovery.

Strategists at Morgan Stanley said they expected a 10% correction in
America's S&P 500 index as the Fed starts to unwind its support.

They added that signs of a stalling recovery could deepen that slide to 20%.

'Signal from the noise'

However, other analysts played down fears of a rout, noting that September
is typically a bad months for stocks.

"Overall, September continues to live up to its bad reputation as
historically the weakest month of the year. But that doesn't mean it can't
rebound," said JJ Kinahan, chief market strategist at TD Ameritrade.

And Lindsey Bell of Ally Invest said any pullback may be short-lived.

"Much of investing is about sorting through what's signal and what's noise,"
she said. "While there is concern about the Evergrande situation infecting
global markets, for the long-term investor, this situation may just be
noise."-bBC

Bitcoin mining producing tonnes of waste

Bitcoin mining produces electronic waste (e-waste) annually comparable to
the small IT equipment waste of a place like the Netherlands, research
shows.

Miners of the cryptocurrency each year produce 30,700 tonnes of e-waste,
Alex de Vries and Christian Stoll estimate.

That averages 272g (9.5oz) per transaction, they say. By comparison, an
iPhone 13 weighs 173g (6.1oz).

Miners earn money by creating new Bitcoins, but the computing used consumes
large amounts of energy.

They audit Bitcoin transactions in exchange for an opportunity to acquire
the digital currency.

Attention has been focused on the electricity this consumes - currently more
than the Philippines - and the greenhouse gas pollution caused as a result.

But as the computers used for mining become obsolete, it also generates lots
of e-waste.

The researchers estimate Bitcoin mining devices have an average lifespan of
only 1.29 years.

As a result, the amount of e-waste produced is comparable to the "small IT
and telecommunication equipment" waste of a country like the Netherlands
researchers said - a category that includes mobile phones, personal
computers, printers, and telephones.

The research is published in the journal Resources, Conservation &
Recycling.

Efficiency drive

As electricity is a key cost for Bitcoin miners, they have sought out ever
more efficient processors.

That has seen a move to highly specialised chips called Application-specific
Integrated Circuits (ASICs).

But ASICs are so specialised that as they become obsolete, they cannot be
"repurposed for another task or even another type of cryptocurrency mining
algorithm", the researchers write.

But while the chips can't be reused, much of the weight of Bitcoin mining
equipment is made up of components such as "metal casings and aluminium
heat-sinks" which could be recycled.

Globally just over 17% of all e-waste is recycled. However, the number is
probably less in some of the countries in which most miners are based, where
in many cases regulations on e-waste are also poor.

Chip shortage

Many industries are struggling with a global chip shortage.

In addition to producing large amounts of e-waste the researchers argue that
"rapidly cycling through millions of mining devices may disrupt the global
supply chain of various other electronic devices".

They suggest that one solution to the problem of e-waste would be for
Bitcoin to change the way transactions are verified, to a different less
computing-intensive system.-BBC

Evergrande: Embattled China property giant sparks economy fears

Global stock markets have been on high alert as crisis-hit Chinese giant
Evergrande faces a key test this week.

The world's most indebted real estate developer is due to make interest
payments of $84m (£61m) on its bonds this Thursday.

Earlier in the week, the company started to repay investors in its wealth
management business with property as it struggled to find cash to meet its
liabilities.

Why is Evergrande in trouble?

Evergrande expanded aggressively to become one of China's biggest companies
by borrowing more than $300bn (£217bn).

Last year, Beijing brought in new rules to control the amount owed by big
real estate developers.

The new measures led Evergrande to offer its properties at major discounts
to ensure money was coming in to keep the business afloat.

Now, it is struggling to meet the interest payments on its debts.

This uncertainty has seen Evergrande's share price tumble by around 85% this
year. Its bonds have also been downgraded by global credit ratings agencies.

Why would it matter if Evergrande collapses?

There are several reasons why Evergrande's problems are serious.

Firstly, many people bought property from Evergrande even before building
work began. They have paid deposits and could potentially lose that money if
it goes bust.

There are also the companies that do business with Evergrande. Firms
including construction and design firms and materials suppliers are at risk
of incurring major losses, which could force them into bankruptcy.

The third is the potential impact on China's financial system.

"The financial fallout would be far reaching. Evergrande reportedly owes
money to around 171 domestic banks and 121 other financial firms," the
Economist Intelligence Unit's (EIU) Mattie Bekink told the BBC.

If Evergrande defaults, banks and other lenders may be forced to lend less.

This could lead to what is known as a credit crunch, when companies struggle
to borrow money at affordable rates.

A credit crunch would be very bad news for the world's second largest
economy, because companies that can't borrow find it difficult to grow, and
in some cases are unable to continue operating.

This may also unnerve foreign investors, who could see China as a less
attractive place to put their money.

Is Evergrande 'too big to fail'?

The very serious potential fallout of such a heavily-indebted company
collapsing has led some analysts to suggest that Beijing may step in to
rescue it.

The EIU's Mattie Bekink thinks so: "Rather than risk disrupting supply
chains and enraging homeowners, we think the government will probably find a
way to ensure Evergrande's core business survives."

Others though are not sure.

In a post on China's chat app and social media platform WeChat, the
influential editor-in-chief of state-backed Global Times newspaper Hu Xijin
said Evergrande should not rely on a government bailout and instead needs to
save itself.

This also chimes with Beijing's aim to rein in corporate debt, which means
that such a high profile bailout could be seen as setting a bad example.

What does Evergrande do?

Businessman Hui Ka Yan founded Evergrande, formerly known as the Hengda
Group, in 1996 in Guangzhou, southern China.

Evergrande Real Estate currently owns more than 1,300 projects in more than
280 cities across China.

The broader Evergrande Group now encompasses far more than just real estate
development.

Its businesses range from wealth management, making electric cars and food
and drink manufacturing. It even owns one of country's biggest football
teams - Guangzhou FC.

Mr Hui has a personal fortune of around $10.6bn, according to Forbes. -BBC

Government borrowing falls in August

Government borrowing fell in August compared with last year as Covid
restrictions continued to ease.

Borrowing, which is the difference between tax income and spending, was
£20.5bn, official figures show - £5.5bn lower than August 2020.

However, this was the second-highest figure for August since records began.

Borrowing has been at record levels, with billions being spent on support
for the economy such as the furlough scheme.

High levels of government coronavirus support, combined with less money
coming into the exchequer due to the pandemic and a fall in economic output,
have pushed government debt up to more than £2.2 trillion, or about 97.6% of
GDP - a level not seen since the early 1960s.

The government borrowed a total of £325.1bn in the financial year to March,
an increase of £27.1bn compared with the previous Office for National
Statistics (ONS) estimate.

This increase is largely due to expected government expenditure of £20.9bn
on guarantees on loans to firms that the businesses will not be able to pay
back.

That £325.1bn total amounts to 15.5% of GDP, the highest ratio since the end
of World War Two.-BBC

Pimlico Plumbers sold to US firm Neighborly

Pimlico Plumbers has been sold to US home services group Neighborly.

The deal will see founder Charlie Mullins offload his 90% stake in the group
and is expected to be worth between £125m and £145m, according to the
Financial Times.

The entrepreneur's son, Scott Mullins, will retain a stake of about 10%, and
continue his role as chief executive.

The London-based firm currently makes nearly $70m (£50.7m) in revenue a
year, and employs more than 400 workers.

Founded in 1979, Pimlico's services include heating, plumbing, bathrooms,
drainage and electrics. It completes an average of more than 100,000 service
jobs for central London homeowners and businesses each year.

>From starting the plumbing business with a second-hand van and a box of
tools, Mullins said he had received approaches from a number of buyers after
hiring advisers from Cavendish Corporate Finance.

"We had various people who wanted to buy the business, and interest from all
over the world, including France, America, and somewhere in the Middle
East," Mullins told the BBC.

The businessman often speaks publicly on economic matters and was an
opponent of Brexit.

He said the firm had experienced a strong year despite the coronavirus
pandemic, with both in and out-of-hours calls increasing, as well as
emergency call outs.

"Covid helped to lift the company to another level," he said, pointing to an
increase to 2,000 to 3,000 jobs a week. "It now needs to go international."

He added: "The business will always be something I will cherish. It has been
a lifetime of work, and what it has achieved is remarkable. Neighborly will
take that to the next level."

Mr Mullins plans to use some of the income from the sale to back other
ventures in music promotion and overseas property.

Neighborly, founded in 1981, is a home services provider, serving more than
10 million residential and commercial customers. As well as plumbing, it
provides pest control, cleaning, and home inspection services.

The acquisition allows Neighborly to extend its international reach.
Neighborly was bought by KKR from investment firm Harvest Partners just two
months ago.

Mike Bidwell, president of Neighborly, said: "We are thrilled to be growing
our global footprint with the addition of Pimlico as the next subsidiary
brand to join our global family of home service professionals.

"Pimlico's wide array of trade services as well as its exceptional customer
care perfectly align with Neighborly's purpose, which is to build an
extensive service community known for providing excellent experiences."-BBC

JPMorgan takes on British rivals with launch of digital bank Chase

(Reuters) - JPMorgan (JPM.N) is challenging British rivals on their home
turf with the launch on Tuesday of its long-awaited digital retail bank,
Chase, as part of what the U.S. lender hopes will be a global expansion.

The launch marks the first foray into retail banking outside North America
by one of the United States' most dominant lenders, heaping pressure on
British incumbents such as Lloyds (LLOY.L), Barclays (BARC.L), NatWest
(NWG.L) and HSBC (HSBA.L) which are already battling low interest rates and
upstart digital rivals.

“We have been watching in which markets customers are really ready to do
their banking primarily through digital channels, and the UK frankly leads
the way in this respect” said Sanoke Viswanathan, chief executive of the new
Chase bank venture.

The venture, if successful, could see the U.S. bank expand into continental
Europe and then globally, he said.

“This is a business that we are building not just for the UK but hopefully
for the rest of the world, and there is a great confluence of talent here
across the different product functions, so it’s a great place to build a
global headquarters for this new business,” he said.

JPMorgan will tempt customers to sign up for the fee-free accounts with
introductory offers, including 1% cashback on debit card spending and 5%
interest on small change rounded up from their purchases and set aside in a
separate savings pot.

"With a strong technology platform, significant financial resources and a
global brand name, JPMorgan could be a serious player in the UK retail
banking space," Nic Ziegelasch, Analyst at broker Killik & Co said.

The Wall Street giant enters a competitive British market with razor-thin
margins caused by low central bank interest rates and a tradition of free
current accounts, as opposed to most global markets where customers pay for
even basic services.

“The market structure in the UK is such that you have to generate economies
of scale, there are profits to be made but if you are subscale or have a
high cost infrastructure you’re not going to make it work,” Viswanathan
said.

JPMorgan is following U.S. rival Goldman Sachs (GS.N), which scooped up
billions of pounds in deposits when it launched its Marcus digital bank in
Britain in 2018 with a then-market-beating interest rate of 1.5% on savings.

It will also compete with digital-only banks such as Monzo, which has
attracted around 5 million customers with its signature coral pink cards and
user-friendly app, but struggled to turn that into steady profits.

The bank has already hired some 500 staff in Britain, Viswanathan said, and
will add more as it builds up its customer support teams.

The Thomson Reuters Trust Principles.

Europe's low-cost carriers to drive jet demand over next 20 yrs -Boeing

(Reuters) - Planemaker Boeing (BA.N) said that European low-cost carriers
would help drive demand for new aircraft in the region over the next 20
years, as airlines replace their ageing fleets with more fuel-efficient
jets.

Boeing said on Tuesday that it expects airlines in Europe to order 7,100 new
single-aisle planes, usually used for short haul trips, between now and
2040, with low-cost specialists like Ryanair (RYA.I) behind that demand.

In fact, Europe's demand for planes will be even more strongly driven by
low-cost carriers than elsewhere in the world, said Boeing vice president,
commercial marketing Darren Hulst.

"Globally our forecast in general is about 40% of single aisle demand is
low-cost carrier, and I would say you could argue in this European space
that number would be slightly higher," he told a press briefing.

In the widebody or long-haul sector, Boeing is expecting demand for 1,545
new jets in Europe over the 20-year period.

Of the 7,100 new single aisle jets, where Boeing's 737 jets compete against
Airbus's A320 and A321s, Hulst is expecting demand for close to 3,000 to
come in the next ten years.

Many traditional carriers like British Airways-owner IAG (ICAG.L) and Air
France-KLM (AIRF.PA) also operate their own low-cost brands, such as Vueling
and Transavia respectively.

Ryanair, one of Boeing's biggest customers in Europe, earlier in September
abruptly ended talks with the U.S. planemaker over a new order of the larger
737 MAX 10 jets, worth tens of billions of dollars, due to differences over
price. read more

But Boeing's Hulst said that Ryanair could always come back if it wanted
more.

"I think we would continue to make sure that the 737 MAX 10 and you know
other derivatives of the 737 can help Ryanair change the game even more," he
said.

The Thomson Reuters Trust Principles.

External review finds deeper rot in World Bank 'Doing Business' rankings

(Reuters) - Weeks before the World Bank scrapped its flagship Doing Business
rankings following a damning independent probe, a group of external advisers
recommended an overhaul of the rankings to limit countries' efforts to
"manipulate their scores."

An 84-page review, written by senior academics and economists, was published
on the bank's website on Monday, about three weeks after it was submitted to
World Bank chief economist Carmen Reinhart.

The World Bank on Thursday said it would cancel the "Doing Business" series
on country business climates, citing internal audits and a separate
independent probe by law firm WilmerHale that found senior World Bank
leaders, including Kristalina Georgieva, who now heads the International
Monetary Fund, pressured staff to alter data to favor China during her time
as World Bank CEO.

Georgieva has strongly denied the findings.

World Bank President David Malpass, in his first public comments since the
data rigging controversy broke last Thursday, told CNBC that the WilmerHale
report "speaks for itself" and that the bank will explore new approaches to
helping countries improve their business climates.

The review published on Monday was written by a group assembled by the World
Bank in December 2020, after a series of internal audits revealed data
irregularities in reports on China, Saudi Arabia, the United Arab Emirates
and Azerbaijan.

It calls for a series of remedial actions and reforms to address the
"methodological integrity" of the Doing Business report, citing what it
called "a pattern of government efforts to interfere" with scoring for the
reports in past years.

"The World Bank needs an introspection. It has been advocating country
reforms for better governance, transparency, and practices. Now it has to
use the prescription for its own reform," said Mauricio Cardenas, the
Columbia University professor and former Colombian finance minister who
chaired the expert panel.

The experts faulted the Doing Business series for lack of transparency about
the underlying data and questionnaires used to calculate the rankings,
called for a firewall between the Doing Business team and other World Bank
operations, and creation of a permanent, external review board.

"We have been informed of multiple cases where national governments have
attempted to manipulate the DB scores by exerting pressure on individual
contributors," the report said, pointing to lawyers, accountants, or other
professionals.

"World Bank staff mentioned several countries where they believe government
officials have instructed contributors how to respond. And even in the
absence of explicit government pressure, of course, the perceived threat of
retaliation may influence the scores contributors report."

SELLING ADVICE

The authors also called for the bank to stop selling consulting services to
governments aimed at improving a country's score, noting that they
constituted an apparent conflict of interest.

"The World Bank should not simultaneously engage in scoring countries’
business environment while accepting payment to coach countries on how to
improve their scores," the authors wrote. The World Bank offered these
"Reimbursible Advisory Services," or RAS in a number of countries, including
some of those implicated in the data manipulation investigation, such as
China and Saudi Arabia, the review said.

In December 2020, the review said, one internal audit reported that bank
management had pressured nine of 15 staff to manipulate data in the 2018 and
2020 issues of the Doing Business index, boosting Saudi Arabia to the "most
reformed" spot globally and buoying the rankings of the United Arab Emirates
and China, while dropping Azerbaijan from the top 10 rankings, the external
advisers reported.

The separate WilmerHale report said that changes to Saudi Arabia's data were
"likely the result of efforts by a senior bank staff member to achieve a
desired outcome and reward Saudi Arabia for the important role it played in
the Bank community, including its significant and ongoing RAS projects."

Justin Sandefur, a senior fellow at the Center for Global Development in
Washington and another member of the expert panel that produced Monday's
report, said that it showed "a governance problem" at the World Bank and he
had not seen any assurances that similar problems would not continue with
other data sets.

The Thomson Reuters Trust Principles.

UK's Johnson discussed taxation with Amazon's Bezos

(Reuters) - British Prime Minister Boris Johnson discussed the issue of
taxation when he met Amazon's (AMZN.O) founder Jeff Bezos in New York,
Downing Street said.

"The prime minister raised the issue of taxation, and hoped progress could
be [made] in implementing the G7 agreement on tax," a Downing Street
spokesperson said in a readout of the meeting.

Bezos pledged on Monday to give away $1 billion in grants this year to focus
on efforts around conservation. read more

The pledge is a part of his previously announced Bezos Earth Fund, which the
Amazon founder started last year to execute his $10 billion commitment to
fund scientists, activists and non-profit organizations in the fight against
climate change.

“The prime minister welcomed the Bezos Earth Fund’s commitment, announced
tonight, to give $1 billion to protect forests and remove carbon from the
air," Downing Street said.

"The prime minister and Mr Bezos agreed to work together to see what more
could be done in the run up to and at COP26."

The Thomson Reuters Trust Principles.

AstraZeneca to invest $360 mln in Irish drug manufacturing site

(Reuters) - AstraZeneca (AZN.L) said on Tuesday it would invest $360 million
to develop a manufacturing facility in Ireland to produce active
pharmaceutical ingredients (APIs), or the main components of medicines.

The Anglo-Swedish drugmaker, which completed its $39 billion purchase of
rare disease drugs maker Alexion in July, has a large portfolio of
treatments for cancer, heart disease, diabetes and a COVID-19 vaccine, with
several drugs under trials.

"The future manufacturing of APIs for our medicines includes compounds with
highly complex synthesis ... This significant investment will ensure the
AstraZeneca supply network is fit for the future," said Pam Cheng, head of
AstraZeneca's operations and IT.

The planned investment in Dublin is expected to support late-stage
development and early commercial supply, the company said, adding that the
site can be developed further to add treatments such as antibody drug
conjugates and oligonucleotides.

The Thomson Reuters Trust Principles.

BMW, Daimler sued for refusing to tighten carbon emissions targets -
Handelsblatt

(Reuters) - The heads of a German environmental NGO have sued automakers BMW
(BMWG.DE) and Daimler (DAIGn.DE) for refusing to tighten their carbon
emissions targets and give up fossil fuel-emitting cars by 2030,
Handelsblatt newspaper reported on Tuesday.

The NGO, Deutsche Umwelthilfe, confirmed to Reuters that the lawsuits had
been filed on Monday evening.

In letters to the firms in early September, the companies were given until
September 20 to agree to the NGO's demands, which also included limiting
production of internal combustion engine (ICE) cars ahead of 2030. read more

Neither of the companies has so far set an end date for ICE car production.

BMW and Daimler confirmed to Reuters on Monday that they had not accepted
the NGO's demands.

The Thomson Reuters Trust Principles.

UK transport group National Express in takeover talks to buy rival
Stagecoach

(Reuters) - British transport company National Express (NEX.L) is in talks
to acquire rival operator Stagecoach Group (SGC.L)in an all-share deal,
which would result in cost savings and provide new growth opportunities for
the companies.

National Express has bus and coach operations in Spain and the Britain, runs
school buses in the United States, and has a German rail contract, while
Stagecoach is solely focused on Britain, where it is the biggest bus and
coach operator.

Under the terms of the potential takeover, Stagecoach shareholders would
receive 0.36 new National Express shares for each Stagecoach share, giving
them a 25% stake in the merged group.

That would value Stagecoach at about 445 million pounds ($609 million),
representing an 18% premium on the closing price of its shares on Monday.

The companies said that discussions and due diligence remained ongoing and
there could be no certainty that a formal offer would be made.

Should a deal go ahead, Stagecoach's chairman Ray O'Toole, a former chief
operating officer at National Express, would become chair of the combined
group, while National Express chief executive Ignacio Garat would continue
as CEO of the merged entity.

($1 = 0.7310 pounds)

The Thomson Reuters Trust Principles.

Kingfisher profit jumps 62% on home improvement boom

(Reuters) - British home improvement retailer Kingfisher (KGF.L) reported a
61.6% jump in first-half profit on the back of a do-it-yourself boom during
the pandemic and raised its sales expectations for the second half.

The group, which owns B&Q and Screwfix in the United Kingdom and Castorama
and Brico Depot in France and other markets, made an adjusted pretax profit
of 669 million pounds ($914.3 million)for the six months ended July 31.

That beat guidance of 645-660 million pounds and was up from 415 million a
year earlier.

Many people have rediscovered DIY during the COVID-19 crisis as they spend
more time at home, have fewer leisure options and travel less.

Kingfisher's sales rose 22.2% on a constant currency basis to 7.1 billion
pounds, with like-for-like sales up 22.8% and up 21.3% on a two-year basis.

"We have navigated well through the challenging operational impacts of the
pandemic, retaining good product availability at competitive prices and
operating safely," CEO Thierry Garnier said.

The group said it had made a good start to its second half, with resilient
demand across all markets.

Third quarter to Sept. 18 like-for-like sales were down 0.6% reflecting high
comparative numbers.

It raised its second half expectations, forecasting like-for-like sales down
7% to 3% versus previous guidance of down 15% to 5%.

Kingfisher forecast a 2021-22 adjusted pretax profit of 910-950 million
pounds, up from 786 million in 2020-21.

It also declared an interim dividend of 3.8 pence and plans to return 300
million pounds to shareholders through a share buyback.

($1 = 0.7317 pounds)

Shell exits Permian with $9.5 bln Texas shale sale to ConocoPhillips

(Reuters) - Royal Dutch Shell (RDSa.L) said on Monday it would sell its
Permian Basin assets to ConocoPhillips (COP.N) for $9.5 billion in cash, an
exit from the largest U.S. oilfield for the energy major shifting its focus
to the clean energy transition.

For ConocoPhillips, it is the second sizable acquisition in a year in the
heart of the U.S. shale industry, as American and European producers diverge
in whether to focus on hydrocarbons going forward.

Like all of the world's largest oil companies, Shell is under pressure from
investors to reduce fossil-fuel investments to help reduce global carbon
emissions and fight climate change.

Europeans such as Shell and BP PLC (BP.L) have set targets to slowly move
away from crude production while investing in non-fossil energy sources like
solar and wind power, while U.S. producers including Exxon Mobil Corp
(XOM.N) and Chevron Corp (CVX.N) are doubling down on hydrocarbons.

Through the deal, ConocoPhillips sides with the latter, but concurrently
announced it would tighten its targets for cutting greenhouse gas emissions,
an acknowledgement of heightened focus on climate considerations.

ConocoPhillips is acquiring around 225,000 net acres, as well as over 600
miles of associated infrastructure, according to its statement announcing
the transaction. This builds on its existing portfolio of 750,000 net acres
in the Permian.

U.S. shale producers have used mergers and acquisitions to boost their size
to compete against the largest operators and lower production costs through
economies of scale.

To help pay for the deal, ConocoPhillips will hike its own divestment
targets by 2023 to between $4 billion and $5 billion, up from between $2
billion and $3 billion.

VALUE

For Shell, selling the Permian assets will leave its U.S. oil and gas
production almost entirely in the offshore Gulf of Mexico, where it is the
largest single producer. It sold its Appalachian gas assets last year.

The sale was announced on the same day Shell disclosed damage to offshore
transfer facilities from Hurricane Ida will cut production from the area
into early next year. read more

"We have had a once in a 20-30 year storm that has been impactful, but we
continue to believe this is a very valuable position," Wael Sawan, the
company's director of upstream, told Reuters.

Sawan said the company would continue to invest in its top oil and gas
assets globally, and while it had looked at options which would have
retained and boosted its Permian acreage in recent years, it was decided the
position did not have sufficient scale for Shell to continue to operate it.

"This sale came up for us as a very compelling value proposition," Sawan
said.

U.S. will continue to account for around one-third of Shell's global
spending, as it focuses on its Gulf position as well as petrochemicals and
renewables.

Shell will return $7 billion of the proceeds to shareholders as dividends on
top of existing commitments, with the rest going to pay down debt, it said.
Conoco also announced it would increase quarterly cash payments to
shareholders by 7% from Dec. 1.

Reuters first reported in June that Shell had put up for sale its assets in
the Permian, the shale formation stretching across Texas and New Mexico that
accounts for around 40% of U.S. oil production.

Morgan Stanley and Tudor, Pickering, Holt & Co advised Shell, with Goldman
Sachs supporting ConocoPhillips. Legal advice for the seller and buyer came
from Norton Rose Fulbright and Baker Botts respectively.

The Thomson Reuters Trust Principles.

Tanzania: Blocks Trading Push Up Dse Turnover

DAR ES SALAAM Stock Exchange (DSE) has been boosted by block trades which
disappeared in the recent weeks pushing down considerably equity market
turnover.

The bourse equity market bounced back with a bullish performance contributed
by two block trades from Vodacom and TBL with a turnover of 2.595bn/- for
the week ending last Friday compared to 0.25bn/- of the previous week.

Zan Securities Chief Executive Officer Raphael Masumbuko said in the firm's
Weekly Market Wrap-Ups that the exchange noticed a strong appetite for the
TBL and Vodacom shares as foreign investors dominated the market.

"We anticipate the equity market continues to be volatile, which parallels
the attentiveness of investors as they attempt to capitalise their
investments on our exchange this coming week," Mr Masumbuko said.

The foreign investor's participation during the week under correspondence
was 81.37 per cent compared to domestic investors 18.63 per cent.

Vodacom dominated last weeks market share by 46.49 per cent, the runner up
was TBL at 39.04 per cent followed by Jatu and CRDB at 6.49 per cent and
5.65 per cent, respectively.

"Jatu counter continues to trend despite its share price taking a drastic
detour from the previously appreciation spike recorded after commencement,"
he said.

Price movement was recorded on two domestic traded equities. Unfortunately,
both movements were downwards as Jatu share price depreciated by 21.36 per
cent to end the week at 810/- per share and CRDB lost 1.96 per cent to close
at 250/- per stock.

Vertex International Securities on its weekly report that the equity market
performance flattered with recovery last week, but fell short as an increase
in turnover and volume failed to push up prices.

"Jatu seemed to have lost its previous week's momentum. We think prices
might catch up [this] week if the turnover and volume continue with this
week's momentum," Vertex said in the report.

All Shares Index (DSEI) gained 0.76 per cent to close at 1,989.64 points
while Tanzania Shares Index (TSI) lost 0.18per cent to close at 3,615.98
points.

Banks, Finance and Investment (BI) lost 0.65per cent to close at 2,505.06
points due to a decrease in CRDB's price.

Industrial and Allied (IA) closed at 5,007.98 points, down by 0.08 per cent
as Jatu posted a huge decline. And, Commercial Services (CS) closed at
2,138.49 points same as last week.-Daily News.

Invest Wisely!

Bulls n Bears 

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INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

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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