Major International Business Headlines Brief::: 29 September 2021

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Major International Business Headlines Brief::: 29 September 2021

 


 

 


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

 


 

 


ü  Brexit paves the way for gene-edited crops

ü  Evergrande: Struggling firm to raise $1.5bn as debt payment looms

ü  Oil price rises above $80 for first time in three years

ü  Amazon announces Astro the home robot

ü  Cryptocurrency expert admits aiding North Korea

ü  Al Gore's firm buys £483m stake in Octopus Energy Group

ü  Lucid to start deliveries of electric cars with range exceeding Tesla's
in October

ü  U.S. has reached out to China about cutting oil imports from Iran,
officials say

ü  AstraZeneca buys drugmaker Caelum in deal worth up to $500 mln

ü  Samsung Electronics close to finalising $17 bln Texas chip plant -sources

ü  EXCLUSIVE China's regulators tighten scrutiny of FX dealers - sources

ü  China seeks to calm power supply fears as crunch bites

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Brexit paves the way for gene-edited crops

The UK government is to relax the regulation of gene-edited crops to enable
commercial growing in England.

 

The plants are to be tested and assessed in the same way as conventional new
varieties.

 

The changes are possible because the UK no longer has to follow European
Union regulations, which are the strictest in the world.

 

The Scottish, Welsh and Northern Irish governments will get to decide
whether to adopt or opt out of the changes.

 

Environment Secretary George Eustice said that he would be working closely
with farming and environmental groups to help grow plants that are stronger
and more resilient to climate change.

 

"Gene editing has the ability to harness the genetic resources that nature
has provided. It is a tool that could help us tackle some of the biggest
challenges that we face."

 

Gene-edited (GE) crops have much simpler genetic alternations than so-called
genetically modified (GM) ones. GM crops often involve the addition of extra
genes, sometimes from a completely different species; and in some instances
the insertion of DNA from animals.

 

Gene-edited crops, by contrast, often just have genes snipped out of them,
producing new varieties within months that could also have been produced by
traditional cross-breeding but over a period of several years.

 

Scientists believe that they can use gene editing to develop fruit,
vegetables and cereals that are more nutritious and productive, as well as
hardier varieties that can withstand the extremes of weather brought about
by climate change.

 

Wheat that has been gene edited to recreate a mutation found only once in
nature which increases grain size and so has the potential to boost yields.

 

European Union regulations require that gene-edited crops are treated the
same as genetically-modified crops.

 

These rules call for a number of field trials over a period of several
years, as well as extensive food safety tests.

 

The final hurdle is for member states to vote to approve a new variety.

 

This approach is regarded by biotech companies as too onerous and expensive,
so no genetically altered crops are developed in the European Union.

 

The Westminster government's plan begins with separating the laws governing
GE and GM crops.

 

As a first step, legislation will be passed later this year to do away with
the need for scientists to apply for a licence to carry out open-air trials
of a gene-edited crop that could have been produced through traditional
cross-breeding.

 

Currently, the approvals process can take up to two months and cost several
thousand pounds.

 

The more significant change will take place next year when legislation will
be brought forward to enable simple gene-edited crops to be regulated in the
same way as any new variety for commercial development.

 

The government is reviewing what measures it would need to bring in to
maintain consumer choice, such as labelling and traceability.

 

In the longer term, ministers will review England's approach to regulation
covering all genetically modified organisms. This includes changes that
might allow the commercial development and farming of gene-edited and
genetically modified animals. Such animals can be made to be more
productive, resistant to some diseases and even better able to withstand hot
weather.

 

The news has been welcomed by many scientists working in the field.

 

Prof Helen Sang works at The Roslin Institute in Edinburgh where researchers
have developed gene-edited pigs that are resistant to a type of lung
disease.

 

"Wednesday's announcement is a first step towards reducing unnecessary and
unscientific regulatory barriers to the use of advanced breeding techniques,
which are precise and targeted, allowing us to make specific genetic
changes," she said.

 

"Adopting a more proportionate and enabling approach to regulation will open
up increased opportunities for international research collaboration, inward
investment and technology-based exports, bringing a major boost for UK
science."

 

But Dr Helen Wallace, of the campaign Group Genewatch, described the changes
as a "weakening of standards meant to protect human health and the
environment".

 

"People won't be fooled. GM crops are GM crops. Whether they are made with
new or old techniques, they can lead to unintended consequences.

 

"GM crops that withstand climate change have been promised for more than 40
years, but have never been delivered. 90% of GM crops that are grown today
are engineered to withstand blanket spraying with weedkillers that are
harmful to butterflies and frogs. New gene-edited crops won't be any
different and will cause the same environmental problems."

 

Liz O'Neill, director of GM Freeze, said the government "wants to swap the
safety net of proper public protections for a high-tech free-for-all".

 

"This announcement is described as a response to Defra's consultation on the
regulation of genetic technologies. However, no detail has been made
available on what George Eustice actually learnt from the exercise.

 

"The consultation submissions that GM Freeze has seen raised a wide range of
concerns about Defra's proposals for dismantling GM safeguards, but this
announcement suggests the minister isn't listening."-BBC

 

 

 

Evergrande: Struggling firm to raise $1.5bn as debt payment looms

Chinese property giant Evergrande has said it is selling a $1.5bn (£1.1bn)
stake it owns in a commercial bank, as it scrambles to raise money owed to
customers, investors and suppliers.

 

The almost 20% stake in state-owned Shengjing Bank is effectively being
bought back by the bank.

 

It comes after Evergrande missed a bond interest payment last week.

 

The cash-strapped company also faces a deadline on Wednesday for another
bond interest payment of $47.5m.

 

Under the agreement announced to the Hong Kong Stock Exchange, the proceeds
of the sale will be used to settle Evergrande's financial liabilities due to
Shengjing Bank.

 

This suggests that Evergrande will not be able to use the money raised by
the sale for other purposes, including the interest payment for the overseas
bond on Wednesday.

 

 

What is Evergrande and is it too big to fail?

The latest payment deadline is being closely watched by investors as they
look for clues on the company's ability to meet its financial obligations.

 

The latest move comes after reports that Beijing has been encouraging
state-owned firms and government-backed property developers to buy assets
from Evergrande to help it raise the money needed to meet its obligations.

 

The crisis engulfing the world's most indebted property developer has
transfixed global markets in recent weeks as the firm struggled to secure
funds to service its more than $300bn of debt.

 

Investors have been watching the crisis unfold as the firm teeters between a
messy collapse with potentially far-reaching implications, a managed breakup
or the less likely prospect of a bailout by the Chinese government.

 

The company has lost around 80% of its stock market value over the last
year.

 

Last week, Evergrande missed a $83.5m interest payment on an overseas bond,
although it did strike an agreement with domestic investors over a $35.9m
payment which was also due.

 

Evergrande shares were around 10% higher in Hong Kong afternoon trade on
Wednesday. Shengjing Bank shares are not publicly traded.-BBC

 

 

 

Oil price rises above $80 for first time in three years

Oil prices climbed above $80 (£59) a barrel on Tuesday, hitting their
highest level in three years as the pound slumped.

 

Brent crude, the international benchmark, rose to as much as $80.69 on the
day, the most since October 2018.

 

Prices have been rising for seven consecutive days on the back of the energy
crisis in Europe.

 

Analysts believe that oil prices will continue to rise amid surging demand
and tight supplies.

 

Investment bank Goldman Sachs said Brent could hit $90 per barrel by the end
of the year, warning that rising input costs, higher gas prices and weaker
growth were likely to weigh on European corporate profit growth for 2021.

 

"When growth slows, it becomes harder for companies to pass on higher input
costs, which is the main risk for net income margins," the Wall Street
lender said.

 

It came as the pound suffered its biggest one-day drop against the dollar on
Tuesday, tumbling 1.3% to just under $1.3530 amid inflation fears. It was
its lowest since January, as investors sought safe haven in the dollar.

 

Share markets also headed lower, with European indexes in the red, and
stocks on Wall Street likewise falling.

 

Jordan Rochester, currency analyst at Nomura, said: "Rising inflation
concerns are making sterling-denominated assets less attractive."

 

Brent crude on the other hand has already gained about 55% for the year to
date. West Texas Intermediate (WTI) also rose to around $75 a barrel.

 

Oil prices slumped at the start of the pandemic. In April last year, they
fell below zero for the first time in history as lockdown wiped out demand
while producers continued to pump crude from their wells.

 

However, demand has been rising in recent months as economies around the
world have started to reopen.

 

Global oil supplies have also taken a hit from hurricanes Ida and Nicholas
passing through the Gulf of Mexico and damaging US oil infrastructure.

 

A dramatic surge in natural gas prices has also made oil a relatively
cheaper alternative for power generation, which in turn has increased
demand.

 

The world's biggest independent oil trader, the Vitol Group, said it
expected global demand for crude to increase by 500,000 barrels a day this
winter.

 

"Similarly, India, the second-biggest importer of crude oil, has also ramped
up its oil imports to a three-month high in August, as refiners begin to
stock up as they project higher demand going forward," said Naeem Aslam,
chief market analyst at Think Markets.

 

Oil exporters group Opec has also said there will be a surge in demand, but
expects this to be slightly lower, at about 370,000 extra barrels a day.

 

During the pandemic, several members of the Opec+ group of producers, which
includes ally Russia and several other countries, cut output and have since
been having trouble ramping up to meet recovering demand.

 

Bleak picture

In the UK, motorists are struggling with fuel prices hitting an eight-year
high, said the RAC, sparked by goods vehicle driver shortages in the
country.

 

Petrol prices reached 135.3p a litre, while the average cost of diesel now
stands at 136.9p.

 

The price of oil is directly linked to the cost of wholesale fuel, as crude
is used in the production of petrol and diesel.

 

Simon Williams, RAC fuel spokesman, said the picture was "pretty bleak" for
drivers.

 

"With the cost of oil rising and now near a three-year high, wholesale
prices are being forced up, which means retailers are paying more than they
were just a few days ago for the same amount of fuel," he said.

 

"We might yet see higher forecourt prices in the coming days, irrespective
of the current supply problems."-BBC

 

 

 

Amazon announces Astro the home robot

Amazon is launching Astro, its first household robot, powered by its Alexa
smart home technology.

 

The company said it can be remote-controlled when not at home, to check on
pets, people, or home security.

 

It can also patrol a home automatically and send owners a notification if it
detects something unusual.

 

Amazon said it was more than "Alexa with wheels" and had been programmed
with a range of movements and expressions to give it personality.

 

It demonstrated asking Astro to "beatbox" - and the robot bopped its head
and made expressions while playing hip-hop beats.

 

Amazon was also keen to pre-empt privacy concerns.

 

 

It said Astro can be set with "out of bounds" zones, so it cannot go into
certain areas, or could be set to "do not disturb". It also features buttons
to turn off cameras and microphones - though it loses its ability to move
around when they are switched off.

 

The small robot also comes equipped with an extendable "periscope" camera
that pops up from its head. Amazon showed an example of using it to check if
a gas hob had been left on after leaving the house.

 

The technology and retail giant suggested that the $999.99 (£740) robot
could be a help to the elderly.

 

"Astro is a bold move by Amazon, but a logical step given its expertise in
robots and desire to become more integrated into consumers' daily
lives,"said Ben Wood, chief analyst at CCS Insight.

 

Unlike some rivals, Amazon "is willing to bring highly experimental products
to market" and see how customers react, he said.

 

"Offering products resembling something from a science fiction novel
positions Amazon as an innovative company in the eyes of consumers and
investors," he said.

 

The robot will ship later this year, Amazon said - but only in the US. And
after the initial, limited run, its price will go up to $1,449.99, it said.

 

"I believe the Astro robot will sell out in minutes when it becomes
available in the US market," Mr Wood said. "I'm just gutted that it won't be
shipping in the UK in the foreseeable future."

 

Amazon wants a slice of the robotics market, boldly stating that it believes
all homes will have one in five to 10 years.

 

It wants Astro to be that must-have new member of the household, and there
is no denying that the little wheeled robot is pretty cute - although the
periscope that pops out of its head is a little creepy.

 

But we have seen other cute humanoid robots - such as Pepper - fail to make
a mark.

 

This is largely because the price tag means it will be a toy for the rich
for some time to come. And while Amazon was keen to convince us that for
that you get more than "Alexa on wheels", it was hard to see a compelling
use case for this other than to curb that ever-present paranoia that you
left the oven on.

 

But building robots is hard. And if the home robotics market is ever going
to take off, people will have to be convinced to spend a lot of money.

 

This first foray offers Amazon a chance to hone its skills. And arguably,
there is no company already as firmly embedded in our homes as Amazon.

 

Presentational grey line

The company is known for occasionally making unusual smart home tech such as
its Alexa-controlled microwave from 2018.

 

At last year's event, Amazon turned heads with a flying indoor alarm drone.
The Always Home Cam launches from its deployment bay if it detects a
potential intrusion, and can fly around a home to check with a video feed.
But it was not launched and no more details were released in the past year.

 

Instead, Amazon on Tuesday said it was opening up the invite list for early
adopters to buy the drone on a limited basis - but did not give dates for
widespread availability.

 

Among the other devices unveiled at the event was the the Amazon Glow: a
video calling device that has the ability to project an interactive
"touchscreen" on the floor or table in front of it.

 

The idea is to engage children during long video calls, as they can play
games or draw on the 19-inch projected "screen" while on the video call.
Relatives on the other end can also interact with the projection through a
tablet app.

 

In one example, Amazon said children could "scan" a favourite toy using the
Glow's camera, and turn it into a jigsaw puzzle to reassemble.

 

Other new products announced included:

 

a Disney-themed Alexa version, featuring the voices of Disney characters, to
be rolled out next year

updates to the Amazon Halo workout band, with a new model called Halo View.

a new model of Ring smart alarm with a built-in wifi router

a paid "virtual security guard" Ring subscription which allows a remote
operator to check cameras triggered by motion detection

The event also coincided with the launch of Amazon's much-delayed video game
New World, its second attempt at a big-budget title after the high-profile
failure of its shooter Crucible last year.

 

Unlike Crucible, however, New World received some favourable feedback during
a popular beta test in July which attracted hundreds of thousands of
players.-BBC

 

 

Cryptocurrency expert admits aiding North Korea

A cryptocurrency expert who gave a talk at a Pyongyang conference has
admitted conspiring to help North Korea evade sanctions.

 

Virgil Griffith, a former senior researcher with the Ethereum Foundation,
pleaded guilty on Monday.

 

The US Department of Justice said he had "jeopardised the national security
of the United States" by undermining sanctions.

 

His lawyer told the Wall Street Journal Griffith was "sincerely remorseful."

 

Launder money

In April 2019, Griffith attended the Pyongyang Blockchain and Cryptocurrency
Conference, with about 100 other attendees.

 

He had applied for permission to travel to North Korea - but when this was
refused, he went anyway, reaching the country via China.

 

Seven months later, Griffith, who had been living in Singapore, was arrested
at Los Angeles International Airport.

 

Prosecutors said Griffith, had given a presentation on blockchain technology
and cryptocurrency, with topics approved by North Korean officials, and
"participated in discussions regarding using cryptocurrency technologies to
evade sanctions and launder money".

 

'Personal trip'

The title of the presentation was Blockchain and Peace.

 

Blockchain is the technology underpinning cryptrocurrencies, in effect a
giant shared ledger of transactions.

 

After Griffith's arrest, Ethereum cryptocurrency co-founder Vitalik Buterin
circulated a petition in support of him, which attracted only modest
support.

 

In the Twitter thread, Mr Buterin said the foundation had not supported
Griffith's activities in North Korea, saying: "It was Virgil's personal
trip, that many counselled against".

 

On Monday, Griffith pleaded guilty to conspiring to violate the US
International Emergency Economic Powers Act by providing services to North
Korea, including technical advice on using cryptocurrency and blockchain
technology to evade sanctions, according to a Department of Justice
statement.

 

Griffith's presentation, the justice department said, had among other
things, focused on "how blockchain technology such as 'smart contracts'
could be used to benefit the DPRK [North Korea], including in nuclear
weapons negotiations with the United States".

 

US Attorney Audrey Strauss said Griffith had agreed to help "one of our
nation's most dangerous foreign adversaries, North Korea".

 

"Griffith worked with others to provide cryptocurrency services to North
Korea and assist North Korea in evading sanctions, and travelled to North
Korea to do so," Ms Strauss said.

 

'Deep sighs'

Griffith, who will be sentenced in January, faces up 20 years in jail but
his plea will probably mean his final sentence is considerably shorter.

 

Ethan Lou a journalist who attended the conference in North Korea and is
following the trial, said the admission of guilt was a "plea deal with up to
six and a half years in prison".

 

"Virgil was quite emotional - deep sighs sometimes when he spoke," he
tweeted.

 

Griffith, who has a PhD from the California Institute of Technology, worked
for the Ethereum Foundation's Special Projects group before his arrest.

 

'Wonderful qualities'

On his now defunct personal website, he said his personal goals were "expose
corruption, curb abuses of power, and with 'gloves off' ensure the digital
age never becomes a digital dystopia".

 

He first rose to wide public attention as the creator of Wikiscanner, a tool
that made it easy to discover, often embarrassing or self-serving, Wikipedia
edits made on computers belonging to well known organisations including the
CIA, the Vatican, the Ministry of Defence and the BBC.

 

Griffith also appeared in reality-TV programme King of the Nerds.

 

His lawyer, Brian Klein, said he had "many wonderful qualities, and no-one
should define him by this mistake".-BBC

 

 

 

Al Gore's firm buys £483m stake in Octopus Energy Group

A clean energy investment fund run by former US vice-president Al Gore has
bought a 13% stake in British energy company Octopus in a deal worth £438m.

 

It means the supplier is now valued at £3.36bn, which is more than the owner
of British Gas, Centrica, at £3.28bn.

 

The agreement comes after several UK energy suppliers have gone bust due to
soaring wholesale prices making price promises to customers undeliverable.

 

Octopus is to use the cash injection to boost its green energy production.

 

Mr Gore's firm, Generation Investment Management, will initially make an
investment of £219m, followed by a further £219m by June next year, subject
to certain conditions, Octopus said.

 

The founder and chief executive of Octopus, Greg Jackson, told the BBC's
Today programme that he believed Mr Gore was looking to invest in the
"changes that we need to see in the energy system globally".

 

 

"After all, if we had more renewables here in the UK prior to the recent
fossil fuel price crisis, we wouldn't be seeing such high prices for
energy," he said.

 

Recent rises in wholesale gas prices have hit the UK energy market hard,
with the country now having around 30 suppliers, compared to more than 70 in
2018. Seven smaller firms have collapsed since the start of August alone.

 

Over the weekend, Octopus, the UK's fifth largest energy supplier, announced
it was taking on 580,000 customers from collapsed supplier Arvo Energy,
after it was appointed by the regulator Ofgem.

 

Gas prices have risen four-fold in recent months, but Ofgem has rejected
claims from the industry that the current energy crisis represents a failure
to adequately regulate the market.

 

However, senior executives in the industry told the BBC the regulator knew
full well that many smaller suppliers would not be resilient in the face of
price rises that should have been part of the regulator's stress testing of
the sector.

 

Mr Jackson said taking on customers from failed companies was "definitely
not as financially attractive as growing customers in the normal way", but
said it was an "incredibly important" move to make in the current crisis to
restore confidence in the energy market.

 

"They (customers) did the right thing," he added. "They went and chose a
great deal, it's no fault of their own."

 

As well as Generation Investment Management funding, Australian firm Origin
Energy, which took a 20% holding in Octopus in May 2020, is also planning to
inject a further £36.5m into Octopus to maintain the size of its
shareholding.

 

Established less than six years ago, Octopus supplies 3.1 million
households, and has operations in the US, Japan, Germany, Spain, New Zealand
and Australia.

 

It currently creates enough green energy to power about 1.5 million homes
and its Kraken technology, which enables customers to access power when it
is cheaper and greener, has also been licensed to rivals.-BBC

 

 

Lucid to start deliveries of electric cars with range exceeding Tesla's in
October

(Reuters) - U.S. startup Lucid Group Inc (LCID.O) said on Tuesday it will
start delivering luxury electric sedans with a Tesla-beating driving range
in late October, posing a major challenge to the market leader whose sales
of premium models have stagnated.

 

The California-based Lucid began production of its long-delayed Lucid Air
cars at its Arizona factory on Tuesday, and said it aims to ramp plant's
capacity up to 90,000 vehicles per annum in the next two years.

 

The top-end Lucid Air Dream Edition will be available in late October,
followed by less expensive models: Grand Touring, Touring and Air Pure. The
company said it has received more than 13,000 reservations for Lucid Air
models, and it has increased the planned total production of the Lucid Air
Dream Edition to 520 vehicles.

 

A version of the Lucid Air Dream Edition, priced at $169,000, received an
official U.S. government rating of a 520-mile (837 km) driving range, over
100 miles more than its closest rival, Tesla's Model S, which is priced at
$89,990. The higher range helped lead to a 23% jump in Lucid's shares this
month.

 

Speaking at the production site, Lucid Chief Executive Officer Peter
Rawlinson, a former chief engineer on the Tesla Model S, said his company's
cars have an advantage in battery technology and costs over the Model S.

 

"We've ridden customers of the fear of range anxiety," he said. "The next
big obstacle is cost effectiveness of electric cars. We've got to get the
cost down."

 

He said the Air Pure, the least expensive version with a price tag of
$77,400, will go into production late next year.

 

EXECUTION CHALLENGE

 

The company, founded in 2007, received funding from Saudi Arabia's Public
Investment Fund in 2018 before going public via a shell company in July.

 

"(20)17 and (20)18 were brutal. The company was in a parlous state. And then
I've got to say, we met a perfect partner," he said.

 

Rawlinson, who left Tesla in 2012, faces tasks similar to those of Tesla in
its early days, including how to address manufacturing challenges and scale
up production.

 

"I think the big challenge for Lucid will be execution," said Sam
Abuelsamid, a principal analyst at Guidehouse Insights. "I think that they
have a very good car. It's very attractive."

 

Tesla CEO Elon Musk said in June that Tesla has canceled its plan to launch
a Model S Plaid+, with a target driving range of 520 miles, saying the Model
S Plaid itself is "just so good".

 

Musk reiterated this month that "production is hard".

 

"Production with positive cash flow is extremely hard," he said, citing
carmakers' razor-thin margins.

 

Tesla's combined sales of Model S and Model X luxury models stood at only
1,890 in the second quarter of this year, down from 22,300 during the same
period three years ago. Tesla does not break out figures for the two
high-end models.

 

"The Model S doesn't look fundamentally different from a Model S nine years
ago," Abuelsamid said. "In the premium market, customers are looking for the
latest and greatest."

 

Musk in October 2020 cut the price of its Model S, shortly after Lucid
announced the pricing of its base model. "The gauntlet has been thrown down!
The prophecy will be fulfilled," he tweeted at that time.

 

Electric vehicle maker Rivian, backed by Amazon.com Inc (AMZN.O) and now
preparing for a public stock listing, earlier this month started production
of electric pickup trucks. That move came ahead of similar expected moves by
Tesla, General Motors Co (GM.N) and Ford Motor Co (F.N).

 

The Thomson Reuters Trust Principles.

 

 

 

U.S. has reached out to China about cutting oil imports from Iran, officials
say

(Reuters) - The United States has reached out to China diplomatically about
reducing its purchases of Iranian crude oil, U.S. and European officials
said on Tuesday, as Washington seeks to persuade Tehran to resume talks
about reviving the 2015 nuclear deal.

 

Purchases of Iranian oil by Chinese companies are believed to have helped
keep Iran's economy afloat despite U.S. sanctions that are designed to choke
off such sales to put pressure on Iran to curb its nuclear program.

 

"We are aware of the purchases that Chinese companies are making of Iranian
oil," said a senior U.S. official who spoke on condition of anonymity
because of the sensitivity of the matter.

 

"We have used our sanctions authorities to respond to Iranian sanctions
evasion, including those doing business with China, and will continue to do
so if necessary," he added.

 

"However, we have been approaching this diplomatically with the Chinese as
part of our dialogue on Iran policy and think that, in general, this is a
more effective path forward to address our concerns," the official said.

 

Separately, a European official said this was one of the issues raised by
U.S. Deputy Secretary of State Wendy Sherman when she visited China in late
July.

 

The European official, who also spoke on condition of anonymity because of
the sensitivity of the nuclear diplomacy, said China has been protecting
Iran and suggested one of the main issues for the West is how much oil China
is buying from Iran.

 

The U.S. State Department did not immediately respond to a request for
comment on the statements by the U.S. and European officials.

 

Commodity analytics firm Kpler estimates that year-to-date Chinese oil
imports from Iran have averaged 553,000 barrels per day through August.

 

Indirect U.S.-Iranian talks about reviving the 2015 deal that began in April
adjourned in June two days after hardliner Ebrahim Raisi was elected
president of Iran, replacing Hassan Rouhani whose administration had
negotiated the agreement.

 

Under the deal, Iran agreed to place limits on its uranium enrichment
program, which is one possible pathway to develop the fissile material for a
nuclear weapon, in exchange for the easing of U.S., U.N. and European Union
economic sanctions. Iran has denied seeking a nuclear bomb.

 

In 2018, then-U.S. President Donald Trump abandoned the agreement and
reimposed harsh economic sanctions that have crippled Iran's economy, though
Tehran has continued to make illicit oil sales to customers, including
Chinese companies.

 

After waiting for about a year, Iran responded to Trump's abrogation of the
deal by starting to carry out some of the nuclear activities that it had
agreed to curb under the pact, formally called the Joint Comprehensive Plan
of Action (JCPOA).

 

Trump's successor President Joe Biden has said he was putting "diplomacy
first" with Iran but if negotiations fail he would be prepared to turn to
other unspecified options.

 

A French presidency official told reporters on Tuesday that Iran must return
to the Vienna talks on the United States and Iran resuming compliance with
the deal in order to avoid a diplomatic escalation that could jeopardize the
negotiations. read more

 

"We need, in this phase, to stay in close contact and closely united with
all of the members of the JCPOA, including the Russians and the Chinese,"
the French official said.

 

"In particular, we expect the Chinese to express themselves and act in a
more determined way. We need to exert pressure, which is indispensable, on
Iran," the French official added.

 

Iran's foreign minister said as recently as Friday that it will return to
talks on resuming compliance with the nuclear deal "very soon," but he gave
no specific date. read more

 

It is unclear how receptive China may be to any U.S. diplomatic overture on
Iran.

 

U.S.-Sino relations have sunk to their worst state in decades this year,
with scant progress on issues ranging from human rights to transparency over
the origins of COVID-19.

 

In a Sept. 24 briefing, a Chinese foreign ministry spokesperson put the onus
on the United States rather than on Iran.

 

"As the one that started the new round of tensions in the Iranian nuclear
situation, the US should redress its wrong policy of maximum pressure on
Iran, lift all illegal sanctions on Iran and measures of long-arm
jurisdiction on third parties, and work to resume negotiations and achieve
outcomes at an early date," the spokesperson said according to a ministry
transcript.

 

The Thomson Reuters Trust Principles.

 

 

AstraZeneca buys drugmaker Caelum in deal worth up to $500 mln

(Reuters) - AstraZeneca (AZN.L) said on Wednesday its newly acquired Alexion
division will purchase the remaining equity in drugmaker Caelum Biosciences
in a deal that could be worth up to $500 million, expanding its access into
rare-disease treatments.

 

The Anglo-Swedish drugmaker said it would take forward Caelum's late-stage
trial of a potential medicine to treat AL amyloidosis, a rare disease that
affects the heart, kidneys and other organs.

 

The Thomson Reuters Trust Principles.

 

 

Samsung Electronics close to finalising $17 bln Texas chip plant -sources

(Reuters) - Samsung Electronics Co Ltd (005930.KS) is close to finalising
the construction of a $17 billion semiconductor factory in Williamson County
in the U.S. state of Texas, three people with knowledge of the matter said.

 

Samsung told Reuters that it is continuing due diligence in multiple
locations, and that it has yet to make a decision.

 

The factory will make advanced logic semiconductor chips and is likely to
create about 1,800 jobs, Samsung previously said in filings to state
officials.

 

One of the people said though no decision has been made, the Austin suburb
of Williamson County is the frontrunner due to the subsidies on offer as
well as the likelihood of stable sources of electricity and water.

 

A winter storm shutdown at Samsung's existing chip plant in Austin during
the first quarter caused the equivalent of 300 billion to 400 billion won
($254 million to $339 million) of damage to wafer production. read more

 

All three people declined to be identified as they were not authorised to
speak with media.

 

Samsung previously said it would start construction on the new
6-million-square-foot (557,418-sq-meter) plant in January, with production
up and running by the end of 2024. read more

 

The plan comes at a time when the global auto industry faces a significant
semiconductor shortage. read more

 

"With the United States turning semiconductors into a strategic material, it
is becoming a risk to be concentrated only in Asia," said Park Sung-soon, an
analyst at Seoul-based Cape Investment Securities.

 

"Samsung wants to be on the ground in the U.S."

 

In the global chip contract manufacturing industry, Samsung is second to
TSMC (2330.TW) which had 52.9% of market share compared to Samsung's 17.3%
as of end-June, according to analysis provider TrendForce.

 

($1 = 1,179.6200 won)

 

The Thomson Reuters Trust Principles.

 

 

 

EXCLUSIVE China's regulators tighten scrutiny of FX dealers - sources

(Reuters) - China's regulators are tightening control over the inner
workings of its currency market, pressuring banks to trade less and in
smaller ranges, two banking sources told Reuters, as part of a sweeping push
to curb speculation.

 

The moves follow recent efforts at curtailing financial risks that include
dampening commodity price rises, banning cryptocurrency transactions and
restricting property speculation. And they bring the campaign deeper into
day-to-day operations on the dealing desks of a $30 trillion market.

 

It is also the latest example of scrutiny focused on foreign exchange, which
analysts said might be aimed at tightening the leash on the yuan at a
sensitive time when U.S. policymakers prepare to withdraw monetary stimulus
and China seems poised to add more.

 

Reuters reported earlier in September that brokers have dropped currency
forecasts following regulatory pressure and reports the scrutiny of the
interbank market for the first time. Authorities have also been hinting that
banks and companies should prepare for volatility. 



In recent months many banks have also withdrawn individual FX trading
products, closing another avenue for speculation.

 

Recently, representatives of China's State Administration of Foreign
Exchange (SAFE) have embedded themselves on currency trading floors from
commercial banks to major state-owned lenders, said the two sources at
separate market-making banks.

 

They said the officials stayed for months, far longer than supervisory
visits previously, and urged them to price customer deals faster and in
tighter ranges, or spreads.

 

The bid-ask spread is the difference between the price the bank charges
clients and price in the market, so narrowing it reduces trading banks'
profit. It could also help hem the yuan in a tighter trading range, but at
the same time moves risk from customers to the bank while a deal is being
executed.

 

One source said the regulator reminded them their role is to keep things
steady or "smoothen fluctuations without pushing the yuan to either side".
They added that regulators had not visited foreign banks this year. Banks in
Hong Kong do not participate in China's onshore interbank market.

 

The other source said they were told to cut volumes to reduce the turnover
of interbank trades - once a badge of honour for so-called market makers who
provide liquidity to each other and the wider trading pool.

 

"(Now) you get calls from regulators if you trade too much," he said. Both
requested anonymity as they are not authorised to talk to the media about
the matter.

 

SAFE told Reuters by fax it has "always supported" market participants in
trading "reasonably", and to promote the integrity, fairness, order and
efficiency of the foreign exchange market.

 

The scrutiny comes at a delicate time for China's currency, which sits near
multi-year highs but faces headwinds as markets prepare for the United
States to begin tapering pandemic-era policy support just as China seems
ready to step in and ease as its economy slows. read more

 

The People's Bank of China has pumped a net 750 billion yuan ($116 billion)
into the banking system since mid-September as markets have been rattled by
fears of contagion from a debt crisis at China Evergrande (3333.HK) and
economic damage from power cuts. read more

 

"Policymakers would rather maintain a loosening bias in the cash conditions,
but one side-effect is that too much cash could prompt speculation," said
Ken Cheung, chief Asian FX strategist at Mizuho Bank in Hong Kong, noting
that is something the latest crackdown might curb.

 

"The central bank has said multiple times not to bet on currency
appreciation or depreciation," he said.

 

MORE INTENSE

 

As President Xi Jinping makes his case for a third term, the country's most
powerful leader since Mao Zedong is driving what some observers describe as
a mini revolution, curbing the excesses of capitalism and returning China to
its socialist roots. read more

 

Crackdowns on tutoring and on tech firms have unnerved investors and
hammered share prices in those sectors. But regulators have also been
changing the way markets operate.

 

"(It's) certainly becoming more intense this year," said one currency trader
at a mid-sized bank, noting extra training sessions, stricter scrutiny from
compliance and even chatter among peers that was becoming more guarded.

 

Since SAFE head Pan Gongsheng warned in June against laying bets on the
yuan's direction, brokers in China have shied away from publishing
once-routine currency forecasts.

 

Around the same time a handful of banks also began quietly closing foreign
exchange trading businesses that had let individual clients bet on non-yuan
currency pairs.

 

Turnover in such accounts was small and has now all but vanished, with the
Bank of China (601988.SS), Industrial and Commercial Bank of China , and
China Merchants Bank (600036.SS) among those to post public statements about
restricting access to trade.

 

SAFE said it had not offered any guidance to commercial banks regarding
personal foreign exchange businesses, and nor did the banks provide clear
reasons for their decisions.

 

Yet all used similar language in their explanations.

 

Huaxia Bank (600015.SS), which said it will suspend its personal FX business
in December cited market changes, while ICBC and China Merchants bank both
said the move was necessary "to respond to changes in market conditions."

 

The Thomson Reuters Trust Principles.

 

 

 

China seeks to calm power supply fears as crunch bites

(Reuters) - China's all-powerful economic planning agency waded into the
country's power crunch on Wednesday, attempting to reassure residents and
businesses in areas hardest hit by shortages that it has the coal use and
supply situation under close watch.

 

The state planner, the National Development and Reform Commission (NDRC),
said it has asked local governments to closely monitor coal use and stocks
at power plants and to improve fulfilment of medium- and long-term contracts
to supply thermal coal. read more

 

The move comes as electricity shortages continue to paralyse parts of the
world's no. 2 economy in various regions, particularly the northeast. A
shortage of coal supplies, toughening emissions standards and strong demand
from manufacturers have pushed coal prices to record highs, sparking
widespread curbs on usage while dimming economic growth outlook. read more

 

China has already called for an increase in imports and ramping up domestic
production of coal, a key fuel used for the majority of its power
generation. 

 

Northeastern China is one of the hardest-hit regions with news reports and
social media posts flagging problems in cities like traffic lights and 3G
communications networks being down, fear of water supply disruptions and
shops operating by candlelight.

 

Officials have sought to reassure citizens coal supply will be adequate
ahead of the upcoming winter and rising demand for fuel for heating.

 

The main state grid operator has also attempted to calm customers twice this
week, saying it would work to guarantee coal supply and strictly control
power use by high-energy consuming and polluting sectors, ensuring power
supply to residents during the October holidays and winter heating season.
read more

 

On Wednesday the People's Daily reported coal resources for heating and
power generation in the northeastern provinces of Jilin, Heilongjiang and
Liaoning had been ensured as some suppliers and producers signed medium and
long-term coal contracts recently.

 

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
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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