Major International Business Headlines Brief::: 23 September 2021

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Major International Business Headlines Brief::: 23 September 2021

 


 

 


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ü  Evergrande: Shares in crisis-hit firm jump as debt deadline looms

ü  US economy continues to strengthen despite Delta, says Fed

ü  Changing China: Why Xi Jinping is leading a way back to socialism

ü  Energy firms' collapse hits 1.5 million customers

ü  Food firms warn of panic-buying this Christmas

ü  Vauxhall Motors plans Luton job losses amid chip crisis

ü  The edible insects coming to a supermarket near you

ü  US lifting ban on imports of British lamb, says Boris Johnson

ü  Investors look ahead to rate hikes with Fed tapering plan all but certain

ü  GM invests in Chinese autonomous driving startup Momenta

ü  California governor signs legislation to protect warehouse workers

ü  Boeing lifts China jet demand estimate over two decades to $1.47 trln

ü  Reuters Poll: Short bets on Asian currencies creep up on Fed taper
outlook

ü  AstraZeneca invests in Imperial's self-amplifying RNA technology with eye
on future drugs

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Evergrande: Shares in crisis-hit firm jump as debt deadline looms

Shares in Evergrande have jumped in Hong Kong after the troubled property
giant struck an agreement with Chinese bond holders on Wednesday.

 

The announcement helped to calm some investor concerns over debts of more
than $300bn (£220bn).

 

But the world's most indebted developer is also due to make a $83.5m
interest payment on an overseas bond on Thursday.

 

The Hong Kong market was closed on Wednesday when the deal was announced.

 

In volatile trade, Evergrande shares were up by more than 20% after
lunchtime.

 

The firm's shares have lost more than 80% of their value on the Hong Kong
stock market so far this year as it struggles to raise money to meet its
obligations.

 

What is Evergrande and is it too big to fail?

The company had moved to placate investors, saying in a statement on
Wednesday that it would pay interest payments for its domestic bonds.

 

The amount due for the domestic bond is estimated to be $35.9m (£26.3m).

 

However, the statement did not reveal how much interest would be paid or
when any payment would be made, saying only that the bond "has already been
resolved through private negotiations".

 

The filing also did not mention the separate foreign bond.

 

Under agreements with investors, the company has a 30-day grace period
before a missed payment on the offshore bond would become a default.

 

Some analysts have cautioned that the failure of such a large and
heavily-indebted property developer could have a major impact on the Chinese
economy, which could potentially spread to the global financial system.

 

Asian stocks mixed as Evergrande fears persist

And while Wednesday's deal was seen by some investors as a positive
development, others remain wary.

 

"It's too soon to say whether this is just a brief respite or it signifies
that a rescue plan is in the works," Donald Low, Director of the Institute
for Emerging Market Studies at the Hong Kong University of Science and
Technology said.

 

Investment experts are looking for clarity over what the Chinese government
may do to resolve the firm's debt crisis.

 

"Until there is certainty regarding how the government will deal with
Evergrande, investors are likely to remain jittery," Catherine Yeung,
Investment Director, Fidelity International told the BBC.

 

Ms Yeung also pointed that Beijing' business crackdown - which has seen it
increasingly tightening its grip on big businesses, including tech giant
Alibaba and ride-sharing app Didi Chuxing- may add to uncertainty.

 

China says crackdown on business to go on for years

"Investors can usually deal with different standalone issues but the
regulatory changes we have seen so far this year, coupled with the fast
evolving Evergrande situation, has seen investor sentiment weaken," she
said.--BBC

 

 

 

US economy continues to strengthen despite Delta, says Fed

The US economy continues to strengthen, albeit at a slower rate because of
the Delta variant of Covid, the US Federal Reserve has said.

 

The central bank said the jobs market was improving and that currently high
rates of inflation remained transitory.

 

It said it may start reducing its emergency support for the economy "soon",
but did not say when.

 

Half of its policymakers also projected interest rates will need to rise in
2022 from current rock-bottom levels.

 

The US economy has rebounded strongly this year from its pandemic lows, but
there are fears Delta will derail the recovery.

 

The country added fewer jobs than expected in August as rising infections
hit spending on travel, tourism and hospitality.

 

Inflation, which measures the increase in the cost of living over time, is
running at 5.3% - the highest in nearly 13 years. It comes amid surging
consumer demand, rising energy prices, and supply chain-related shortages.

 

Despite this, the Federal Open Market Committee (FOMC), which sets US
monetary policy, said overall indicators of economic activity "have
continued to strengthen".

 

"The sectors most adversely affected by the pandemic have improved in recent
months, but the rise in Covid-19 cases has slowed their recovery," it said.

 

"Inflation is elevated, largely reflecting transitory factors. Overall
financial conditions remain accommodative, in part reflecting policy
measures to support the economy and the flow of credit to US households and
businesses."

 

'Broadly as expected'

The FOMC said the path of the economy still depended "on the course of the
virus". And it expects to keep monetary policy loose until more progress is
made on stabilising unemployment - which stands at 5.2% - and consumer
prices.

 

However, it said if progress continues "broadly as expected", it may soon
pare back its $120bn-a-month bond-buying programme which has helped keep
borrowing rates low.

 

Analysts said the bank was taking a cautious approach, noting no formal date
was set for pulling back support.

 

"While the Federal Reserve has laid the groundwork for an eventual taper [of
asset purchases] later this year, the Fed erred on the side of caution given
that the macroeconomic landscape has deteriorated somewhat over the last few
months," said Candice Bangsund, a portfolio manager at Fiera Capital.

 

"Preconditions for a formal taper announcement will largely depend on
economic conditions over the coming months, with an emphasis on data
dependence."

 

Gurpreet Gill, a macro strategist at Goldman Sachs, said ongoing supply
chain disruption, the spread of Delta and higher inflation still weighed on
the minds of Fed committee members.

 

"Given uncertainty around the health of labour market and inflationary
pressures, we would not be surprised if the 'dot plot' changes again in the
coming months as the pace of the recovery and underlying inflation dynamics
become clearer."

 

The Fed has two goals. It aims to keep US inflation at about 2% and to
achieve maximum employment, whereby everyone who needs a job has one.

 

During the pandemic it has supported the economy by slashing interest rates
to historic lows and pumping billions of dollars into the financial system
by buying government and corporate bonds.-BBC

 

 

Changing China: Why Xi Jinping is leading a way back to socialism

For decades life in China had evolved around its home-grown version of
let-it-rip capitalism.

 

Despite being technically a "communist" country, the government had put its
faith in trickle-down economics, believing that allowing some people to
become extremely rich would benefit all of society by dragging it out of the
disastrous quagmire of Chairman Mao's Cultural Revolution as quickly as
possible.

 

To an extent it worked. A large middle class has emerged and people in
virtually all strata of society now have better living standards as a
result.

 

Wealth disparity

>From the stagnation of the 1970s China has been thrust to the top of the
pile, now challenging the United States for global economic dominance.

 

But it left a chasm of income disparity.

 

It is there to be seen in the children of those who were in the right place
and the right time.

 

Parents who were able to take over factories in the 1980s made exorbitant
profits which have paid for their progeny to now drive flashy sports cars
around gleaming cities, zooming past the construction workers who wonder how
they will ever be able to afford to buy a home.

 

The get-out-of jail card for the Party had always been the phrase "with
Chinese characteristics".

 

The concept of socialism - "with Chinese characteristics" - allowed the
government massive philosophical leeway to run a society which, in many
ways, was not very socialist at all.

 

General Secretary Xi Jinping appears to have decided that this is no longer
acceptable.

 

The Chinese government, under his leadership, has started putting the
Communist back in the Communist Party, at least to some extent.

 

An elderly woman pushes a cart after searching through rubbish bins to
collect recyclable items to sell, along a street near the Great Hall of the
People in Beijing.

 

 

The new catchphrase is "common prosperity".

 

It hasn't really appeared yet on the street side propaganda posters but this
can't be far off.

 

It is now the cornerstone of what China's leader is doing.

 

Crackdowns on daily life

Under this banner, targeting tax evasion by the wealthy makes more sense, as
do moves to make education more equitable by banning private tutoring
companies. The ongoing crackdown on the country's tech giants can also be
seen as part of the plan.

 

So does Xi Jinping really believe in this idea of a communist project? It is
hard to be 100% sure but some observers would say it certainly seems that
way.

 

Performers in the costume of emergency workers surround a large Communist
Party flag during a mass gala marking the 100th anniversary of the Communist
Party on June 28, 2021.

 

 

As a comparison, in the past it didn't feel like that with many other Party
officials.

 

The thing is that - along with the wealth redistribution aspects of the
communist path - Mr Xi also seems to believe that this means thrusting the
Party back into most aspects of daily life, as the only realistic way of
achieving what needs to be done.

 

Kids are being lazy, wasting away their youth playing video games? Party to
the rescue: three-hour gaming limit.

 

Teenagers having their minds poisoned with silly, idol-worshipping
television? Party to the rescue: "sissy looking" boys banned from
programmes.

 

Demographic time bomb ticking: Again, the Party has the solution:
Three-child policy for all!

 

Football, cinema, music, philosophy, babies, language, science
 the Party
has the answers.

 

At odds with his father's beliefs

To try to understand what has made Xi Jinping the leader he is today you
have to take a look at his background.

 

His father, Xi Zhongxun, was a Communist Party war hero, known as a
moderate, who was later purged and imprisoned in the Mao era.

 

At the time Mr Xi's mother was forced to denounce his father. After his
father's official rehabilitation in 1978, he pushed for economic
liberalisation in Guangdong Province and reportedly defended one of China's
most progressive leaders Hu Yaobang.

 

Given the persecution of Mr Xi's father at the hands of Communist Party
zealots, given his father's inclination towards reform, many have asked why
Xi Jinping now seems to be taking the Party in a direction which would
appear to be at odds with his father's beliefs?

 

There are various possible explanations.

 

Perhaps he simply disagrees with his father's line on certain political
matters.

 

Or maybe China's leader intends to pursue a plan which, while different in
emphasis to the priorities of his father, will not end up anywhere near the
policies of the Mao era. At least not intentionally.

 

However, it does still seem quite remarkable.

 

Chinese President and Chairman of the Communist Party Xi Jinping appears on
a large screen as performers dance during a mass gala marking the 100th
anniversary of the Communist Party on 28 June 2021.

 

 

When his father was sent to prison, Xi Jinping, at the age of 15, was made
to go to work in the fields for years, living in a cave house.

 

These tumultuous times clearly toughened him up but could just have easily
transformed into a hatred of politics, especially of a hard-line variety.

 

Some China watchers have speculated that he perhaps believes that only a
strong leader can guarantee that China will not return to the chaos of the
1960s and 70s.

 

And remember the rules have now been changed so that he can remain in power
for as long as he likes.

 

One reason for all this guess work is that we never hear him explain what he
is doing in terms of his decisions. China's leaders do not give interviews
even with the compliant Party-controlled media.

 

Mr Xi turns up in rural villages for television opportunities and is
welcomed by orchestrated crowds of cheering locals who receive his wisdom on
corn growing or other aspects of their work and then he leaves.

 

So it is hard to predict what new rules, restrictions or guidelines might be
placed on economic activity in China or how far any of this will go.

 

In recent times, barely a week has gone by without a major change to the
regulations governing one part of the Chinese system or another.

 

It has been, frankly, difficult to keep up with them. Many of these changes
have come completely out of the blue.

 

It is not that there is an innate problem with the state controlling various
levers of production here. That is for economists to debate in terms of what
is most efficient. The problem has been the sudden uncertainty.

 

How can anybody reliably make investment decisions if they don't know what
the ground rules will be in a month's time?

 

There are those here who see the whole process as a natural part of the
country "growing up". In areas which had been unregulated there have needed
to be regulations.

 

If this is the case, then this period of shock tactic transition may be only
a temporary state which will eventually calm down as new rules become clear.

 

But it is by no means clear what the length or breadth of these moves will
be.

 

One thing that is certain is that any shift should be seen through the prism
of Xi's "common prosperity" drive at a time when the Party will not give up
an inch of its power while implementing it and, in China, you can either get
on board this truck or get run over by it.

 

This is the first in a three-part series looking at China's changing role in
the world.

 

Parts two and three will explore how Beijing is rewriting the rules of doing
business and the global implications of this.-BBC

 

 

 

Energy firms' collapse hits 1.5 million customers

Nearly 1.5 million customers have been affected by energy firms collapsing
under soaring gas prices.

 

Avro Energy and Green ceased trading on Wednesday and their 830,000 combined
customers face being switched to a new, potentially more expensive,
provider.

 

All affected customers will still receive energy while a new supplier is
appointed by watchdog Ofgem.

 

Neil Lawrence, director of retail at Ofgem, said its "number one priority is
to protect customers."

 

The regulator's price cap also limits how much firms can charge.

 

But providers have complained that they are unable to pass on rising costs
to customers because of the cap on energy bills.

 

 

Where does the UK get its gas and is it facing a shortage this winter?

What is the energy price cap and what if my supplier goes bust?

Gas prices: 'I'm just watching the meter go up'

Since wholesale gas prices have started to spike, a number of firms have
collapsed.

 

People's Energy, Utility Point, PfP Energy and MoneyPlus Energy ceased
trading in September.

 

These smaller companies, including Avro Energy and Green Supplier Limited,
account for more than five per cent of the UK energy market - about 1.5
million customers.

 

Firms that have gone bust chart

Mr Lawrence added: "We know this is a worrying time for many people and news
of a supplier going out of business can be unsettling."

 

He reminded customers of the failed companies that the regulator would be
appointing a new supplier for them and suggested that it is best not to try
to switch in the meantime.

 

The energy regulator's boss did, however, warn on Wednesday that other
suppliers may face a similar fate.

 

"We've already seen hundreds of thousands of customers affected, that may
well go well above that. It's very hard for me to put a figure on it,"
Jonathan Brearley said in front of the Commons cross-party business
committee.

 

He would not say if the number of customers that would eventually need new
suppliers could run into "millions".

 

What happens if your energy supplier goes bust?

Customers will still continue to receive gas or electricity even if the
energy supplier goes bust. Ofgem will move your account to a new supplier,
but it may take a few weeks. Your new supplier should then contact you to
explain what is happening with your account

While you wait to hear from your new supplier: check your current balance
and - if possible - download any bills; take a photo of your meter reading

If you pay by direct debit, there is no need to cancel it straight away,
Citizens Advice says. Wait until your new account is set up before you
cancel it

If you are in credit, your money is protected and you'll be paid back. If
you were in debt to the old supplier, you'll still have to pay the money
back to your new supplier instead

 

 

Lisa Barber of consumer rights group Which? said that millions of people may
be feeling apprehensive because of speculation that other small companies
could fold in the coming days and weeks.

 

Igloo, for example, has said it is working with restructuring consultants
Alvarez & Marsal, although it told the BBC it had not appointed
administrators. Bulb, the UK's sixth largest energy company with 1.7 million
customers, is also seeking additional financing.

 

Ms Barber said: "Ofgem will appoint new energy suppliers to take over and
protect any credit customers have so they can be reassured they won't be cut
off or lose their money. We'd recommend taking a meter reading as soon as
possible to ensure the transition is as smooth as it can be."

 

Dame Claire Moriarty, chief executive of Citizens Advice, told the BBC there
had been a big increase in people seeking their help, with 30,000 people
checking their energy advice pages online in recent days.

 

"We're seeing people come to us because they're seeing family finances being
really squeezed," she added.

 

Smaller providers launched in recent years have been overwhelmed by a spike
in the cost of wholesale gas prices as economies have reopened from
lockdowns and high demand from Asia pushed down supplies to Europe.

 

Gas prices are rising all across Europe, but Britain has also been affected
by lower winds than usual - denting renewable energy supplies - as well as a
recent fire at a National Grid site in Kent.

 

In the UK, firms had already been hit by a jump in costs even before the
recent spike. From more than 70 suppliers in 2018, there are just over 30
now.

 

Industry sources fear there may be as few as 10 suppliers left by the end of
the year.

 

Ofgem has previously acknowledged that the cost of protecting customers from
failing energy providers could lead to higher bills.

 

Customers on some tariffs are protected from sudden hikes in wholesale gas
prices through the energy price cap, which limits how much firms can charge
per unit of gas.

 

The price cap covers 15 million households across England, Wales and
Scotland.-BBC

 

 

 

Food firms warn of panic-buying this Christmas

Food industry bodies have warned of panic-buying this Christmas unless
action is taken to address labour shortages.

 

The National Farmers' Union (NFU) called for an emergency visa to allow
firms to recruit from outside the UK.

 

UK farmers, hauliers and shops have been struggling with shortages that have
been made worse by Covid and Brexit.

 

The government said that the UK has a "highly resilient food supply chain".

 

The head of the NFU, Minette Batters, wrote to Prime Minister Boris Johnson
on Wednesday warning that the food and farming sector is on a "knife edge"
due to a shortage of workers across the entire supply chain.

 

The letter, signed on behalf of a number of food and drink trade bodies,
urged the government to introduce a Covid-19 recovery visa to open up new
recruitment opportunities as a matter of urgency.

 

"Without it, more shelves will go empty and consumers will panic buy to try
to get through the winter," Ms Batters wrote.

 

"That is why we must have an urgent commitment from you to enable the
industry to recruit from outside the UK over the next 12 months to get us
through the winter and to help us save Christmas."

 

She said it is "a travesty that this is happening in parallel with UK food
producers disposing of perfectly edible food as it either cannot be picked,
packed, processed or transported to the end customer".

 

"Every day there are new examples of food waste across the industry, from
chicken to pork, fruit and vegetables, dairy and many other products. The
food is there, but it needs people to get it to the consumers," Ms Batters
said.

 

The letter was signed on behalf of other groups such as the British Frozen
Food Federation, the British Meat Processors Association, Dairy UK and the
Food and Drink Federation.

 

The prime minister says he does “not believe people will be short of food”
amid reports of some empty supermarket shelves.

Some farmers have resorted to giving fruit and vegetables away rather than
let it rot in their fields.

 

The NFU has said that only 11% of seasonal workers in the 2020 season were
UK residents.

 

Robert Newbery from NFU East Midlands said earlier this month: "Brexit is
certainly having an impact. The people that could move freely within Europe
before now can't."

 

In response to the NFU's call for support, the government increased the
number of visas available under the Seasonal Worker Pilot (SWP) from 10,000
in 2020 to 30,000 this year.

 

There are also labour shortages in meat production, with a shortfall of
abattoir workers and butchers.

 

The Association of Independent Meat Suppliers told the BBC in August the
industry had about 14,000 job vacancies.

 

It said Covid, the UK's exit from the European Union (EU) and perceptions
over career paths had caused a looming "recruitment crisis".

 

Hauliers and food firms have also been warning of a chronic shortage of
lorry drivers, which they also ascribe to the pandemic and Brexit.

 

A government spokesperson said that the UK's supply chain is "highly
resilient" and has coped well when faced with recent pressures.

 

They pointed out that the government earlier this year expanded its Seasonal
Workers Pilot to 30,000 visas for workers to come to the UK for up to six
months.

 

"We continue to work closely with industry to understand labour demand and
supply, including both permanent and seasonal workforce requirements," they
said.

 

Separately, the government has said it has taken action to prevent
supermarket shortages with a deal to restart production at CF Industries,
the UK's biggest producer of carbon dioxide.

 

Why is there a CO2 shortage and how will it hit food supplies?

The gas is widely used by the food industry to prolong shelf life.

 

Restarting production at the carbon dioxide plants is set to cost taxpayers
tens of millions of pounds, after the government agreed to meet the full
operating costs for three weeks.-BBC

 

 

 

Vauxhall Motors plans Luton job losses amid chip crisis

Hundreds of jobs are at risk at Vauxhall's van plant, due to a global
shortage of microchips.

 

A letter, seen by the BBC, which was sent to staff at the Luton works, said
more than 200 jobs could go at that site which produces the Vivaro van.

 

Vauxhall said it is consulting with staff and unions over a temporary
reduction of shifts from three to two.

 

The Unite union said it would "do everything in our power to mitigate or
prevent" job losses.

 

The letter to employees, warning of "a reorganisation programme, which might
result in a number of redundancies", cited the "knock on effects" of the
pandemic, specifically the global semiconductor chip shortage.

 

Triggered by Covid, the computer chips needed for connected cars are in
short supply and in August, Vauxhall managing director Paul Willcox said the
car industry would be facing a "problem" for months.

 

 

During the first lockdown there were big cuts in vehicle production but when
companies began to ramp up output again, they found supplies of
semiconductors had been taken by other industries which were experiencing a
sales boom.

 

Modern vehicles can have hundreds of chips so the shortage has forced car
manufacturers to curtail production.

 

Vauxhall said it had concluded the nightshift "is no longer viable" and
while it had looked at restricting recruitment, overtime and agency staff,
it "currently appears that it will, regrettably, be necessary to reduce
staffing levels".

 

It is proposing the number of production positions be reduced from 990 to
751.

 

A Vauxhall spokesman said: "As with all vehicle manufacturers globally, the
semiconductor component shortage is impacting our production sites.

 

"Therefore, we are entering a consultation period with our employees and
union partners for the Luton plant to temporarily reduce the current three
shifts to two."

 

Andy Faughnan, from the Unite union, said: "We will do everything in our
power to mitigate or prevent some of these job losses.

 

There are options we want to explore with the company. I wrote to them
yesterday regarding some of these options and hopefully we'll be able to
save some of the jobs that are at risk of redundancy."-BBC

 

 

 

The edible insects coming to a supermarket near you

It has long been suggested that we should start eating insects to help the
environment, but for many of us it is not a palatable thought. One Israeli
firm is hoping to win over the squeamish by adding different flavourings.

 

Dror Tamir opens a packet of brown, jellied sweets. "Try one," says the boss
of food tech firm Hargol.

 

The little gummies are packed with protein, but not from soy or gelatine.
They are instead made from an edible, jumping insect - locusts, which are a
type of grasshopper.

 

"Grasshoppers taste like pecans, mushrooms, coffee and chocolate," adds Mr
Tamir. "But with our range of food we can add in different flavours
 the
gummies come in orange and strawberry flavour."

 

The Israeli entrepreneur says he became fascinated with grasshoppers as a
child, after hearing stories from his grandmother, who was the cook on a
kibbutz, or collective farm.

 

"I learned about the 1950s, when Israel suffered from both food insecurity
as well as locust swarms flying in from Africa and destroying the crops," he
says.

 

"While most kibbutz members ran to the fields to scare the grasshoppers
away, the Yemenite and Moroccan Jewish members collected tons of them to
eat.

 

"That's when I learned that grasshoppers are food for billions around the
globe."

 

The insects have long been eaten by communities across Africa, Asia, Central
America and the Middle East, but for many people in Europe and North America
it remains an unwelcome thought.

 

Mr Tamir hopes to change all that, and his firm is about to introduce a
range of products. In addition to the sweets there will be energy bars,
burgers and falafel balls.

 

If you are still not convinced that insects will ever become part of the
Western diet, some experts believe there may be eventually no choice due to
environmental concerns and projected global population growth.

 

By 2050 the world population is expected to reach 9.8 billion, up from the
current 7.7 billion.

 

With another two billion people to feed, some say that traditional farming
will not be able to keep pace. And that, at the same time, switching to
insect protein will be far better for the environment than rearing cows,
sheep and other mammals.

 

"Protein is essential in our diets," says Prof Robin May, chief scientific
advisor to the UK's Food Standards Agency. "But often some of our most
protein-rich foods come with significant environmental or ethical footprints
- meat or dairy products, for instance.

 

"Some insect proteins, such as ground crickets or freeze-dried mealworms,
are cheap, easy to farm, low fat and have a lower environmental impact than
meat.

 

"And sometimes they may even provide a valuable 'recycling' service, by
consuming waste products as their primary feedstuff, so the potential
advantages to society are significant."

 

Yet Prof May also cautions that some questions remain regarding the eating
of farmed insects.

 

"The way that insects are farmed and the relatively short time in which they
have been used as agricultural animals means that we know far less about
insect-derived foods than we do for, say, beef," he says.

 

A key question at this stage, he adds, is whether some insect proteins may
prove to be allergenic or to have significant impact on the human microbiome
- the bacteria and other microbes that live inside our bodies.

 

Mr Tamir is convinced that the environmental and health benefits are enough
of a reason to make insects part of the diet.

 

His firm farms its locusts at an indoor, solar-powered facility in northern
Israel. The main species that it breeds is the migratory locust, but it also
farms the desert locust, and a bush cricket called nsenene.

 

"We can breed 400 million locusts a year in our facilities," says Mr Tamir,
who adds that the insect takes just 29 days to become fully grown.

 

He claims that compared with beef production, locust farming reduces
greenhouse gas emissions by 99%, water consumption by 1,000 times and arable
land usage 1,500-fold.

 

Mr Tamir is also keen to point out that locusts are both kosher and halal,
meaning that they can be eaten by both dietary observant Jews and Muslims.

 

Whether you can actually buy edible insects to eat depends on what country
you live in. In the UK, you can buy them from online firms such as EatGrub
and Horizon Insects, although the sector would like the UK government to
remove expensive regulation.

 

In the European Union, both the migratory locust and yellow mealworms, the
larva of a beetle, were deemed fit for human consumption this year.

 

French firm Ynsect makes a range of protein powders made from mealworms that
are already found in some brands of energy bars, pasta and burgers.

 

Chief executive Antoine Hubert says the protein is "completely natural" and
"a less processed alternative" to many mammal-based meats, such as sausages,
hams and breaded chicken products.

 

He points to a recent study from Maastricht University showing that insect
protein is as beneficial as milk protein. "Both have the same performance on
digestion, absorption and on the ability to stimulate muscle production,"
says Mr Hubert.

 

Yet Bridget Benelam, communications manager at the British Nutrition
Foundation, says more research is still needed. She echoes Prof May's
concerns about potential allergies, saying some people may be allergic to
eating insects in the same way that others have an adverse reaction to
shellfish.

 

She points out that some unanswered questions remain around the safety of
consuming some types of insect, which could potentially transfer toxins or
pesticides to humans. "These are some of the barriers that need to be
overcome if eating insects is to become truly mainstream."

 

Back in Israel, Mr Tamir admits that "the yuck factor" is one of his
industry's most important challenges. "But I am convinced it will soon be
widely accepted, just like eating raw fish in sushi was embraced."-BBC

 

 

 

US lifting ban on imports of British lamb, says Boris Johnson

The United States is lifting its decades-old ban on imports of British lamb,
Boris Johnson has announced.

 

The PM, who is in the US for talks with UN leaders and President Joe Biden,
said the ban was "unjustified".

 

But he admitted the UK was now focused on making "incremental steps" on US
trade access, rather than aiming for a full agreement.

 

Mr Biden appeared to play down the chances of a wider deal during a meeting
with Mr Johnson on Tuesday.

 

Speaking to reporters on Wednesday, Mr Johnson said the Biden administration
"is not doing free trade deals around the world right now".

 

But he added he had "every confidence that a great deal is there to be
done".

 

 

Labour's deputy leader Angela Rayner mocked the lack of movement, saying the
PM had made "absolutely zero progress" on a trade deal during his US trip.

 

The United States has banned British lamb imports since 1989, following the
first outbreaks of BSE, commonly known as mad cow disease.

 

A similar ban on British beef imports, imposed in 1996, was lifted in
September last year.

 

There is no indication yet of when the US will start accepting lamb and lamb
products from the UK, and an official announcement has not been made.

 

The US Department for Agriculture has been consulting on lifting the ban
since 2016 - and there were originally hopes it would be lifted the
following year.

 

At the time, the UK government estimated the change would be worth an extra
£35m a year to the UK economy.

 

When it comes to trade, the big deal that's emerged from Boris Johnson's
visit to Washington is that there's to be no deal happening any time soon.

 

That's significant, and a setback for Boris Johnson's government.

 

In March 2020, just a few weeks after the UK had left the EU, the then-Trade
Secretary Liz Truss said the day marked a "crucial step in beginning the
formal negotiations for a free-trade agreement with our largest bilateral
trading partner, the United States."

 

Today it all looks different. The United States, Boris Johnson told us, is
not doing deals.

 

So whilst Ms Truss predicted a "£3.4 billion lift to the economy" from a
US-UK deal, today we had an "incremental step" but a tiny one by comparison
- a possible opening for lamb exports.

 

A US deal was by far the biggest prize when it came to the promise of
post-Brexit trade deals. But under this US administration, it's not
happening any time soon.

 

2px presentational grey line

Mr Johnson said the ban was "totally unjustified" and "discriminating on
British farmers and British lamb".

 

The National Sheep Association industry group welcomed the news, adding it
had always seen the US as a "potentially important market".

 

Its chief executive Phil Stocker cautioned, however, that "we shouldn't
expect to see any sudden surge in volumes going to the US".

 

He added that Brexit had made it more difficult to sell into the EU - the
UK's lamb largest export market - and it was "important to work on any
market that gives us future potential".

 

Mr Johnson cited the lifting of the ban as an example of "practical steps to
help our exports" the UK was taking, pending progress on wider trade talks.

 

Downing Street has pointed to the resolution of the Airbus-Boeing trade
dispute, as well as the lowering of whisky tariffs and the decision to lift
the ban on British beef.

 

Securing a trade deal with the United States has been a priority for many
Brexit-backing politicians, following the UK's departure from the EU.

 

But on Tuesday, Mr Biden appeared to downplay the chances of an agreement
soon, adding he would discuss the issue "a little bit" with Mr Johnson
during his trip to the White House.

 

"We're going to have to work that through," the US president added.

 

US deal prospects

The US is already a significant UK trading partner, accounting for £1 in
every £6 of British trade.

 

The BBC understands the government is considering whether to join an
existing trade arrangement between the US, Canada and Mexico - known as the
USMCA.

 

However, Downing Street denies this and says it focus remains on a UK-US
trade deal.

 

If a USMCA arrangement was pursued, it would limit the UK's ability to sell
services.

 

Economists say the overall gains from joining it could be less than 0.1% of
the UK's Gross Domestic Product (GDP) - a measurement of the size of the
economy.-BBC

 

 

Investors look ahead to rate hikes with Fed tapering plan all but certain

(Reuters) - Investors are grappling with how an unwind of the Federal
Reserve’s easy money policies could affect asset prices, after the central
bank signaled that a taper of its bond-buying program was closer than ever
and suggested it may raise rates at a faster-than-expected pace.

 

In what some described as a hawkish tilt, the Federal Reserve on Wednesday
cleared the way to begin reducing its monthly bond purchases as soon as
November, and nine of 18 U.S. central bank policymakers projected borrowing
costs will need to rise in 2022. read more

 

Fed Chairman Jerome Powell said the U.S. central bank could conclude its
tapering process around the middle of next year, as long as the recovery
remains on track. read more

 

The focus on rate increases comes as investors gauge how markets will
respond to an unwind of the central bank’s $120 billion per month
bond-buying program, which has helped the S&P 500 double from its March 2020
lows.

 

Though many had expected the central bank to begin its unwind before the
year was up, some investors said the projection for rate increases may spur
worries over whether the Fed risks tightening monetary policy at a time when
the economy could be significantly weaker than it is today, potentially
undercutting the case for stocks and other comparatively risky assets.

 

"With this hawkish move, the Fed risks tightening policy into a slow-growth
backdrop," said Emily Roland, co-chief investment strategist at John Hancock
Investment Management.

 

Stocks held onto their gains after the Fed’s statement, with the S&P 500
closing up nearly 1%.

 

In Treasury markets, the gap between five-year notes and 30-year bonds fell
below 100 basis points after the Fed policy statement to the lowest level
since July 2020. A narrower gap could indicate factors like economic
uncertainty, easing inflation concerns and anticipation of tighter monetary
policy.

 

“The rates market interpreted Fed communications as hawkish,” analysts at
BoFA Global Research said in a note. “The more hawkish Fed is a key
ingredient for our higher rates view into year-end.”

 

The Fed funds market fully priced in a rate hike by January 2023 after the
statement, moving projected rate increases forward by a month.

 

Analysts at TD Securities expect the central bank to reduce its asset
purchases by $15 billion a month starting in November, helping push up
yields and strengthen the dollar, they said in a report.

 

The U.S. currency's trajectory is important for investors as it impacts
everything from commodity prices to corporate earnings. Higher yields make
dollar-denominated assets more attractive to income-seeking investors. The
greenback was up 0.23% against a basket of its peers late Wednesday.

 

"Once the dust settles it seems that there are enough hawkish signals to
keep the dollar biased higher, as the market pencils in a
sooner-than-expected rate hike," said Joe Manimbo, senior market analyst at
Western Union Business Solutions.

 

Others were sanguine on the Fed’s outlook, saying the more hawkish view was
a reflection of the economy’s strength in the face of a COVID-19 resurgence.

 

Markets are likely to remain more focused on the inference that additional
rate hikes in 2022 and 2023 would suggest a strengthening economy than on
the Fed's tapering plan, said Mark Freeman, chief investment officer at
Socorro Asset Management.

 

"Powell clarified repeatedly ... that the criteria for tapering is very
different than criteria for raising rates, which is much higher" and will
have more of a market impact, he said.

 

Rick Rieder, chief investment officer of global fixed income at BlackRock,
said in a note that robust demand for Treasuries would likely minimize the
impact of the Fed’s unwind.

 

“With the demand for income and financial assets that we’re seeing..., the
modest tapering likely to be seen from the Fed is not consequential for
markets,” he said.

 

The Thomson Reuters Trust Principles.

 

 

GM invests in Chinese autonomous driving startup Momenta

(Reuters) - General Motors Co (GM.N) said on Thursday it will invest $300
million in Chinese autonomous driving startup Momenta to develop
self-driving technologies for future models in China, its first such tie-up
in the world's biggest car market.

 

Momenta is among the few companies that hold a permit for gathering
high-definition maps in China, a key tool in autonomous driving
technologies. It is working with automakers to develop mass-production
vehicles with self-driving functions to gather real-time data.

 

The company is also backed by SAIC Motor (600104.SS), GM's main Chinese
partner, as well as Toyota Motor (7203.T) and Daimler AG (DAIGn.DE).

 

"Customers in China are embracing electrification and advanced self-driving
technology faster than anywhere else in the world, and the agreement between
GM and Momenta will accelerate our deployment of next-generation solutions
tailor-made for our consumers in China," said Julian Blissett, GM's China
chief.

 

The U.S. automaker said in June it would spend $35 billion through 2025 on
electric vehicles and autonomous driving technologies globally. Earlier this
month, its venture capital arm invested in Oculii, a U.S. maker of software
for radar sensors used in self-driving cars. read more

 

Automakers and technology firms are investing billions of dollars in
autonomous driving, aiming to take an early lead in what many consider the
future of mobility.

 

Other global automakers have tie-ups with Chinese firms in the nascent
technology. Toyota is testing vehicles with Pony.ai, Nissan Motor (7201.T)
works with WeRide, while Honda (7267.T) has teamed up with AutoX.

 

The Thomson Reuters Trust Principles.

 

 

 

California governor signs legislation to protect warehouse workers

(Reuters) - California Governor Gavin Newsom on Wednesday signed a bill that
limits warehouse employers like Amazon.com Inc (AMZN.O) from setting
productivity quotas, the first legislation of its kind in the United States.

 

The new provisions require all companies using warehouse labour to disclose
productivity quotas to employees and government agencies and bar use of
algorithms that prevent employees from taking rests and bathroom breaks,
thereby endangering their health and safety, the governor's office said.

 

The California State Senate this month approved the bill in a 26-11 vote.

 

"We cannot allow corporations to put profit over people," Newsom said in a
statement, signing the measure into law.

 

 

"The legislation ensures workers cannot be fired or retaliated against for
failing to meet an unsafe quota."

 

While Newsom's office did not single out any company in the statement, the
New York Times reported that the bill was written partly in response to high
rates of injuries at Amazon warehouses.

 

The rate at which Amazon workers suffer serious injuries was nearly double
that of the rest of the warehousing industry last year, the newspaper
reported, citing studies.

 

Amazon did not immediately respond to a request for comment.

 

"The hardworking warehouse employees who have helped sustain us during these
unprecedented times should not have to risk injury or face punishment as a
result of exploitative quotas that violate basic health and safety," Newsom
said.

 

The California Retailers Association expressed disappointment that Newsom
signed the bill, saying it "will exacerbate our current supply chain issues,
increase the cost of living for all Californians and eliminate good-paying
jobs".

 

The Thomson Reuters Trust Principles.



 

Boeing lifts China jet demand estimate over two decades to $1.47 trln

(Reuters) - Boeing Co (BA.N) raised its forecast slightly on Thursday for
China's aircraft demand for the next 20 years, betting on the country's
quick rebound from COVID-19 and future growth in its budget airline sector
and e-commerce.

 

Chinese airlines will need 8,700 new airplanes through 2040, 1.2% higher
than its previous prediction of 8,600 planes made last year. Those would be
worth $1.47 trillion based on list prices, the U.S. planemaker said in a
statement.

 

The 1.2% increase contrasted with the 6.3% growth Boeing forecast last year,
which made China a bright spot in the aviation market at the height of
coronavirus lockdowns worldwide.

 

Earlier this month, Boeing revised up long-term forecasts for global
airplane demand on the back of a strong recovery in commercial air travel in
domestic markets like the United States.

 

"There are promising opportunities to significantly expand international
long-haul routes and air freight capacity," said Richard Wynne, managing
director of China marketing at Boeing's commercial arm.

 

"Longer-term, there is the potential for low-cost carrier growth to further
build on single-aisle demand."

 

China's domestic aviation market, although still vulnerable to sporadic
local COVID-19 outbreaks, has more or less rebounded to pre-COVID levels,
but the country's borders remain virtually closed, with the number of
international flights only 2% of pre-COVID levels.

 

Boeing projected a need for nearly 6,500 new single-aisle airplanes over the
next 20 years, while China's widebody fleet, including passenger and cargo
models, will require 1,850 new planes, accounting for 20% of total
deliveries.

 

Air freight market has become a bright spot for Boeing in China as
e-commerce demand booms, even as the U.S. planemaker struggles with sales of
passenger jets due to trade tensions and the grounding of its 737 MAX.

 

China's aviation authority, the first regulator to ground 737 MAX following
two deadly crashes, has yet to approve the return of service for the
aircraft in the country. China accounts for a quarter of Boeing's orders of
all aircraft.

 

China will also need nearly $1.8 trillion worth of commercial services for
its aircraft fleet over the 20-year period, company said.

 

The Thomson Reuters Trust Principles.

 

 

Reuters Poll: Short bets on Asian currencies creep up on Fed taper outlook

(Reuters) - Bearish bets on most Asian currencies rose marginally in the
run-up to a U.S. Federal Reserve meeting where it hinted at possible rate
hikes next year, while bullish bets on the yuan reversed, according to a
Reuters poll on Thursday.

 

In its policy meeting on Wednesday, the Fed left key rates unchanged and
didn't announce the start of its asset purchase tapering, as expected, but
Chair Jerome Powell said board members believed tapering could conclude in
the mid of next year, paving the way for potential rate hikes.

 

The Fed's stance sent the dollar (.DXY) to its highest level in a month on
Thursday, while its counterparts in Asia were broadly unchanged.

 

Mildly bullish positions in the yuan from two weeks ago were reversed, the
poll of 11 respondents showed, on concerns over the fate of embattled
property developer China Evergrande (3333.HK) - Asia's biggest junk bond
issuer and a key component of the Chinese economy. read more

 

Losses in the yuan, however, were capped after the heavily indebted property
giant said it would make a bond coupon payment on Thursday, easing some
fears of a possible default. Financial markets were closed in China and
Taiwan through Tuesday and in South Korea until Wednesday for the Mid-Autumn
Festival holiday.

 

Short bets on the South Korean won climbed to their highest level since
March last year, while bear positions rose significantly in the Thai baht
and the Philippine peso .

 

As Thailand continues to reel under its most severe coronavirus outbreak,
the government announced plans on Wednesday to speed up vaccinations and
said it would introduce urgent stimulus measures.

 

Most of Thailand's 1.5 million infections and 15,000 deaths occurred since
April, following a year of successful containment during which its key
tourism sector collapsed. read more

 

The Philippines eased some curbs last week, allowing small businesses in its
capital region to reopen after being shut for weeks as the country fights
one of Asia's worst COVID-19 outbreaks.

 

Long bets on the Indonesian rupiah firmed after the country's central bank
left policy steady earlier this week and kept its target range for 2021
growth unchanged after a downgrade in July.

 

The Reuters survey is focused on what analysts believe are the current
market positions in nine Asian emerging market currencies: the Chinese yuan,
South Korean won, Singapore dollar, Indonesian rupiah, Taiwan dollar ,
Indian rupee , Philippine peso , Malaysian ringgit and the Thai baht.

 

The poll uses estimates of net long or short positions on a scale of minus 3
to plus 3.

 

A score of plus 3 indicates the market is significantly long U.S. dollars.
The figures included positions held through non-deliverable forwards (NDFs).

 

The Thomson Reuters Trust Principles.

 

 

AstraZeneca invests in Imperial's self-amplifying RNA technology with eye on
future drugs

(Reuters) - AstraZeneca Plc (AZN.L) on Thursday struck a deal with the firm
behind Imperial College London's experimental COVID-19 vaccine to develop
and sell drugs based on its self-amplifying RNA technology platform in other
disease areas.

 

Under the deal, VaxEquity, a startup founded by Imperial vaccinologist Robin
Shattock, could receive up to $195 million if certain milestones are met, in
addition to royalties on approved drugs and equity investment from
AstraZeneca and life sciences investor Morningside Ventures.

 

AstraZeneca already produces an adenoviral vector COVID-19 vaccine, and
emphasised the potential of the self-amplifying RNA (saRNA) technology in
novel therapeutic programmes beyond the coronavirus pandemic.

 

"This collaboration with VaxEquity adds a promising new platform to our drug
discovery toolbox," said AstraZeneca research chief Mene Pangalos.

 

The technology works in a similar way to the messenger RNA (mRNA) vaccines
made by Pfizer/BioNTech (PFE.N), (22UAy.DE) and Moderna (MRNA.O).

 

However, a self-amplifying RNA vaccine not only encodes the instructions for
the host cell to make a coronavirus protein, but makes lots of copies of the
RNA containing those instructions, meaning doses can be smaller and cheaper.

 

"It's a bit like having a manufacturing facility, and instead of having one
copy of the recipe, you have multiple copies that you can hand round to
multiple production lines within the cell to produce more protein,"
Imperial's Shattock told Reuters. "So that's why it has that opportunity to
use lower doses."

 

Imperial's COVID-19 vaccine is being retooled to produce a more consistent
immune response with an eye on future coronavirus variants.

 

AstraZeneca, under the deal, has the option to collaborate on 26 drug
targets for use against other therapeutic areas like cancers and rare
genetic diseases.

 

"We believe self-amplifying RNA, once optimised, will allow us to target
novel pathways not amenable to traditional drug discovery across our therapy
areas of interest," Pangalos said.

 

U.S. companies Gritstone bio (GRTS.O) and Arcturus (ARCT.O) also are
developing saRNA COVID-19 vaccines. read more

 

Shattock said safety data had been encouraging from initial trials of its
COVID-19 vaccine, released in July ahead of peer review, and that Phase I
results of its refined vaccine would be ready early next year.

 

"The reason we were slower was because we were coming from an academic
setting," he said. "If we had this relationship (with AstraZeneca) at the
beginning of 2020, we might have been faster."

 

The Thomson Reuters Trust Principles.

 

 

 

 

 

 

 

 


 


 


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
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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.

 


 

 


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