Major International Business Headlines Brief::: 04 April 2022

[Bulls n Bears]

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Major International Business Headlines Brief::: 04 April 2022 

 


 

 


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

 


 

 


ü  Tesla delivers record number of cars despite challenges

ü  Trump's Truth Social app branded a disaster

ü  Shanghai lockdown: Economy shaken by zero-Covid measures

ü  EasyJet cancels 100 flights due to Covid absences

ü  Ukraine war to halve global trade growth, warns WTO

ü  Amazon workers win battle to form first US union

ü  Russia says it won't cut off gas supplies yet in rouble payment row

ü  US jobs rise again as firms raise wages to woo staff

ü  Fracking 'worth exploring' says British Gas owner Centrica

ü  Warning of fresh energy bill shock in October as prices rise again

ü  Nigeria: Investment in Road Infrastructure Building Nigeria's Economy - Buhari

ü  Nigeria: Govt May Name Concessionaires for 4 Airports This Week

ü  Nigeria: We've Spent Over N157 Billion On Second Niger Bridge So Far - Finance Minister

ü  Kenya: Government Urged to Deal With Cartels Behind Fuel Shortage

ü  Tanzania: No Possible Fuel Crisis, Says Ewura

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Tesla delivers record number of cars despite challenges

Tesla says it delivered a record number of its cars in the first quarter, despite supply chain challenges.

 

The electric carmaker says it delivered more than 310,000 vehicles in the first three months of this year.

 

That was almost 70% higher than for the same time last year.

 

Chief executive Elon Musk says the improvement came despite an "extremely difficult quarter", including strict coronavirus policies in China, where Tesla has a so-called 'giga factory'.

 

Tesla delivered 310,048 cars from the start of this year to the end of March, up from 184,800 a year earlier, according to figures released over the weekend.

 

"This was an exceptionally difficult quarter due to supply chain interruptions and China zero Covid policy," Mr Musk said on Twitter.

 

"Outstanding work by Tesla team and key suppliers saved the day."

 

 

The bulk of deliveries were of Tesla's Model 3 sedan and Model Y.

 

Mr Musk previously said the Model Y, which was launched in 2019, was part of Tesla's plan to reach a wider market.

 

It has a longer range per charge than the Model 3 - which was launched two years earlier.

 

The world's most valuable carmaker is set to release its full financial results for the period on 20 April.

 

Tesla has a 'giga factory' in Shanghai, which is a high volume car manufacturing plant, which also produces the lithium-ion batteries that power the vehicles.

 

It was reportedly shut as the city saw a surge in coronavirus infections.

 

Tesla did not resume production at the site on Monday as planned, according to reports that cited an internal memo.

 

The company did not immediately respond to a BBC request for comment.

 

In January, Mr Musk said he expected Tesla to grow by more than 50% this year despite supply chain problems.

 

The firm reported a record $5.5bn (£4.2bn) profit last year.

 

 

Chinese officials imposed a lockdown in Shanghai, a major manufacturing and financial centre, for mass Covid testing last week.

 

However, they have adopted a staggered approach which allows half of the city to remain open.

 

Businesses, including rival carmaker Volkswagen, have also scaled back their operations in Shanghai.

 

The city is also a hub for semiconductor and electronics manufacturing, as well as being the world's busiest shipping port.-BBC

 

 

 

Trump's Truth Social app branded a disaster

In October, Donald Trump announced he was planning to launch a revolutionary technology company.

 

"I created Truth Social… to stand up to the tyranny of big tech," he said.

 

"We live in a world where the Taliban has a huge presence on Twitter yet your favourite American president has been silenced."

 

The app launched on Presidents' Day, 21 February, but six weeks later is beset by problems. A waiting list of nearly 1.5 million are unable to use it.

 

Number 1,419,631

Truth Social looks a lot like Twitter, a platform that banned Mr Trump after a mob of his supporters attacked the United States Capitol Building.

 

Twitter believed Donald Trump, by making false claims the election had been "stolen", had incited violence. He was banned for life on 8 January, 2021.

 

Truth Social might look like Twitter, but it isn't available on Android phones, web browsers or, apparently, to most people outside the US.

 

"It's been a disaster," Joshua Tucker, director of NYU's Center for Social Media and Politics, said.

 

And a Republican ally of Mr Trump's, who did not wish to be identified, said: "Nobody seems to know what's going on."

 

On 21 February, Truth Social was one of the App Store's most downloaded apps - but many who downloaded it were unable to use it.

 

There was an assumption this problem would soon be resolved and Mr Trump would start posting his "truths" in the coming days - but neither of those things happened.

 

My attempt to register, this week, was placed at number 1,419,631 on the waiting list.

 

While YouTube, TikTok, Instagram and Facebook are among the 10 most downloaded apps, according to Similar Web, Truth Social is outside the top 100.

 

Users who find their way in can find the app a little empty, as many big voices on the American right have so far stayed away.

 

Another study found downloads have fallen by as much as 95%.

 

And many are feeling frustrated.

 

"Signed up for Truth Social a couple weeks ago and still on a waiting list," one Twitter user said, on Tuesday.

 

"By the time I'm off the waiting list and on to Truth Social for real, Trump will be President again," joked another.

 

Baffled experts

Truth Social chief executive Devin Nunes said its goal was to be "fully operational" by the end of March.

 

But quite why the app is having so many problems has baffled experts.

 

Some have pointed to Truth Social's partnership with Rumble, a video-sharing platform that looks a bit like YouTube.

 

Popular with conservatives and the far right, Rumble was supposed to provide a "critical backbone" for the site's infrastructure.

 

But if Truth Social is having server problems, why has it taken so long to fix?

 

"It should take a few days to fix, not six weeks," a Republican source close to Mr Trump said.

 

"There's always going to be hiccups at the beginning - but at this point, I would have thought it would have been resolved.

 

"Nobody seems to understand why."

 

Rival competitors

Mr Trump is said to be furious, asking why more people are not using Truth Social.

 

He has about 750,000 followers but has not posted a "truth" for well over a month.

 

"Maybe they're holding him back," Mr Tucker said.

 

"That's his last chance to launch it - when suddenly Trump comes in and starts being really active on it, that will get a buzz."

 

Much maligned, Truth Social could still rival competitors such as Gab and Gettr.

 

Mr Trump retains star quality and any "free speech" app would bend over backwards to have him on its platform.

 

But at the moment, Truth Social has become a little embarrassing.

 

A platform supposed to stand up to Silicon Valley's heavyweights has barely been able to get to its feet.-BBC

 

 

 

Shanghai lockdown: Economy shaken by zero-Covid measures

>From Tesla's giga factory to a huge Disney resort, many multinational companies have their Chinese foothold in Shanghai. But in recent days the usually bustling financial centre has been stopped in its tracks after a spike in coronavirus cases.

 

With little notice, officials imposed two staggered waves of lockdowns on the city's more than 26m residents. The eastern side of Shanghai has just been through four days of tight restrictions. The western part began its four-day isolation on 1 April.

 

The latest round of quarantining is China's largest since the coronavirus outbreak was first identified in Wuhan at the end of 2019.

 

This lockdown could turn out to be particularly costly for the world's second largest economy.

 

As well as being a major focus of the financial industry, Shanghai is a hub for semiconductor, electronics and car manufacturing. It is also the world's busiest shipping port.

 

Xu Tianchen, China economist for the Economist Intelligence Unit said short-term supply chain disruptions will have an impact on China's economy as a whole.

 

"There will also be ripple effects elsewhere because of the interconnectedness between Shanghai and other regions of China, especially the manufacturing hub of the Yangtze River Delta," he said.

 

On a more local level, the city known for its high-end storefronts like Gucci and Louis Vuitton has already seen consumer spending slump.

 

Lost business at retailers, hotels, and restaurants could directly cost Shanghai 3.7% of its annual Gross Domestic Product (GDP), according to Mr Xu.

 

GDP is a key measure of the health, or otherwise, of an economy.

 

China's growth target

The Chinese government has set a target for the country's GDP to grow by 5.5% this year. But some analysts have said it will struggle to meet that goal.

 

At the end of last week, data pointed to a slowdown in March for China's manufacturing and services sectors.

 

It came after the technology hub Shenzhen and Jilin in China's industrial north-east last month also faced lockdowns so that officials could conduct mass coronavirus testing and try to curb the spread of the highly transmissible Omnicron variant of Covid-19.

 

"We have seen PMI data, which shows that both manufacturing and services sectors are actually hit hard. And that has not included the Shanghai lockdown. So I think qualitatively we're seeing more downside pressure for the first and second quarters of GDP data," according to Peiqian Liu, China economist for NatWest Markets.

 

PMI data is a summary of market conditions gathered through surveying senior executives in key industries about their expectations for a number of factors including new orders, production and employment.

 

With the number of coronavirus cases rising, there could also be more trouble ahead if there are further lockdowns, especially for small business owners.

 

"The focus is much more on how employment is going to hold up in a prolonged lockdown or extended period of uncertainties of lockdown due to outbreaks.

 

"So I think the service sector is not only facing a short-term pressure from a three-week lockdown from Shenzhen or a one-week lockdown from Shanghai, but facing much more pressure from the uncertainty that's going down the road with current set of Covid management policies," Ms Liu said.

 

'Closed-loop living'

While some companies in Shanghai have decided to close during the lockdown, others in industries like financial services and car manufacturing have implemented so-called "closed-loop" systems, according to Ms Liu.

 

Essentially, this means that employees have to live as well as work at their offices or factories.

 

"Imagine what happened in the Winter Olympics. It was also a closed-loop management, just to ensure that things within the bubble works operationally normal, and that they isolate people from outside or from the rest of China."

 

However, Mr Xu points out that it is not a strategy that can be sustained in the long-term.

 

"There's a concern that if lockdowns become prolonged and disruptions to the transportation to the supply chain persist, businesses will be unable to source supplies.

 

"So they are having an impact on road transport. The obvious risk is that Shanghai fails to eliminate the current outbreak quickly," he said.

 

Will Beijing stick to the plan?

Even as much of the rest of the world opens borders and eases restrictions, China still looks unlikely to shift away from its strict approach to the coronavirus.

 

"The policy has been a political source of legitimacy. The low levels of infections and deaths in China are often compared to other countries in the domestic media. As a result, the majority of the population within China still favour the zero-Covid policy, despite the increasing economic costs," Mr Xu said.

 

But Ms Liu believes there is a possible silver lining as Beijing has pledged to support the economy to meet its ambitious growth target.

 

"The government has been responsive with a set of easing policies from both fiscal and monetary front.

 

"That will hopefully stabilise the domestic growth momentum for this for the time being, and to ensure China's smooth running of the supply chain to minimise the global interruption of supply chain at this short term," she said.-BBC

 

 

EasyJet cancels 100 flights due to Covid absences

EasyJet has cancelled around 100 flights on Monday, including 62 from the UK, blaming higher than usual levels of staff absence due to Covid.

 

The airline said it had tried to offset the problem by using standby crew but was forced "to make some cancellations in advance".

 

It comes amid rising demand for travel as the Easter school holidays begin.

 

Airports are also struggling with staff shortages that have led to long queues for security and check-in.

 

EasyJet, one of Europe's biggest airlines, said the cancellations were a small part of its schedule on Monday, which is around 1,645 flights.

 

"As a result of the current high rates of Covid infections across Europe, like all businesses, easyJet is experiencing higher than usual levels of employee sickness," a spokesman said.

 

"Unfortunately it has been necessary to make some additional cancellations for today and tomorrow. We are sorry for any inconvenience this may cause."

 

He said affected customers had been contacted and could rebook on alternative flights or receive a voucher or refund.

 

Travellers miss flights during airport chaos

More delays for passengers at Manchester Airport

Airports have also seen staff shortages at time when demand for travel is picking up following the end of travel restrictions.

 

Passengers at Manchester Airport have faced long queues for check-in and security, leading some to miss their flights at the start of the Easter holidays.

 

There have also been complaints about extensive waits in the baggage reclaim halls.

 

On Sunday, traveller Donna Mayfield told the BBC the situation was "horrendous", while another said they had seen "customers and staff in tears".-BBC

 

 

 

Ukraine war to halve global trade growth, warns WTO

The Ukraine war has led the World Trade Organization (WTO) to cut its global trade growth forecast for this year.

 

The previous 4.7% growth forecast has been cut to 2.5% due to "the impact of the war and related policies", said WTO boss Dr Ngozi Okonjo-Iweala.

 

The cut is also linked to continuing global supply chain problems that started as a result of the pandemic.

 

She said disruptions would make food more costly, saying "my worry is that we have a food crisis that is brewing".

 

Dr Okonjo-Iweala told the BBC that although Russia and Ukraine only make up about 2.5% of global merchandise exports, they "are very, very significant in certain sectors".

 

"The first worry, of course, is for the people of Ukraine, who are being displaced [and] not having enough food to eat," she said.

 

She added the global economy was "going to suffer some severe consequences", and said poorer countries would particularly feel the impact of the shortages, and "the supply constraints on food".

 

Supplies of many food products including wheat and corn have been affected following Russia's invasion of Ukraine.

 

Industry groups have warned the EU faces a shortage of sunflower oil. In total, 46.9% of global exports come from Ukraine and 29.9% from Russia according to S&P Global, but with Ukraine's ports closed it is struggling to export it.

 

"I'm truly worried about looming hunger, particularly in poor countries that can least afford it," Dr Okonjo-Iweala warned.

 

Using Africa as an example, the former Nigerian finance minister said 35 of 55 countries there imported wheat and other grains from Russia and Ukraine and 22 imported fertiliser.

 

"Work being done by the African Development Bank now shows that in many countries, food prices are rising by 20% to 50% already," she said.

 

However, Dr Okonjo-Iweala said she was hopeful there were solutions to the supply problems.

 

She said in the short term countries could be "changing our dietary tastes" to eat more homegrown products.

 

She added in the longer term Africa was investing in "heat tolerant varieties of wheat and other crops" as it adapts to climate change.

 

As well as food prices surging, the cost of other commodities have hit record highs amid concerns the war and economic sanctions on Russia will lead to supply disruptions.

 

Russia's mining industry is hugely important for many substances such as palladium, where it is responsible for 40% of global production of the metal that is essential for carmakers.

 

Even before the war in Ukraine, the pandemic had caused a mismatch between supply and demand in many industries which pushed prices up, and the International Monetary Fund has warned that soaring inflation will reduce global economic growth this year.

 

"In the short to medium term, I think that we are going to see these inflationary pressures continue," Dr Okonjo-Iweala said.

 

Trade battle with Russia

Trade has become a key tool many countries have used to pressure President Vladimir Putin over his decision to invade Ukraine.

 

Ukraine has cut economic ties with Russia and led calls for it to be suspended from the WTO because of the war. However no country has ever been expelled from the WTO, something the Director-General said is "not an easy thing to do".

 

She says there is no mechanism to kick Russia out despite some leading international trade lawyers disagreeing.-BBC

 

 

 

Amazon workers win battle to form first US union

A team of Amazon workers has forced the technology giant to recognise a trade union in the US for the first time.

 

Workers at a New York warehouse voted 55% in favour of joining the Amazon Labor Union.

 

The group is led by former Amazon worker Chris Smalls, who made his name protesting against safety conditions at the retail giant during the pandemic.

 

Mr Smalls' victory marks a major defeat for Amazon, which had fiercely fought against unionisation.

 

However, in Alabama, where Amazon was facing a separate union drive, the company appeared to have fended off activists in a tight contest in which challenged ballots could yet overturn that result.

 

Together, the two elections mark a milestone for activists, who have long decried labour practices at Amazon, the country's second largest employer.

 

Mr Smalls emerged from the vote count looking tired but jubilant, and popped open a bottle of champagne he was handed by supporters.

 

"We did whatever it took to connect with these workers," he told the crowd, recounting an against-the-odds campaign that started with "two tables, two chairs and a tent" and relied on an online fundraiser for money.

 

"I hope that everybody's paying attention now because a lot of people doubted us."

 

In a statement, Amazon said it was disappointed by the loss in New York and that it was evaluating how to proceed. It also accused regulators of improperly influencing the vote.

 

"We believe having a direct relationship with the company is best for our employees," the company said. "We're evaluating our options, including filing objections based on the inappropriate and undue influence by the [National Labor Relations Board]".

 

Rebecca Givan, professor of labour studies at Rutgers University, said Amazon's defeat by Mr Smalls and his team of worker-organisers was a "really big deal", calling it a "David and Goliath story" that upset the odds.

 

But she warned he will be facing another tough fight when it comes to contract negotiations.

 

"Amazon will do everything it can do undo this success, to break up these workers and to try to stop the momentum that will inevitably come from this victory," she said.

 

After the vote, Chris Smalls was instantly surrounded by supporters and assembled camera crews.

 

He and his team of worker organisers had struck out on their own, creating a brand new, independent labour union to launch their fight against Amazon.

 

Their victory was a moment of vindication for the former Amazon worker, whom the company once called "not smart, or articulate" in a leaked strategy memo.

 

But, as he told the crowd, it is far bigger than that.

 

Amazon employs more than one million people in the US and it has extraordinary influence on work practices - even outside its doors.

 

The company has put up a wall of resistance to unions since its inception.

 

With this win, activists are hoping that wall is about to crumble.

 

Amazon has already poured resources into fighting the unionising efforts, which it sees as an obstacle to business flexibility and warehouse efficiency.

 

Officials have said the company offers competitive pay and benefits and believes it is better to work directly with workers. In meetings about the vote, representatives questioned union leaders' ability to win more in contract negotiations.

 

Amazon said it may challenge the results, citing the timing of a decision by the National Labor Relations Board to sue the company last month alleging unfair labour practices in New York.

 

As part of its statement, it shared comments by two of the country's most powerful business lobbies also raising objections, including a letter from the National Retail Federation to congressional leaders that called for an investigation of the matter.

 

Mr Smalls said he was undaunted by the challenges ahead.

 

The 33-year-old had worked for Amazon for more than four years before the company fired him in 2020, after his coronavirus protest, citing quarantine violations.

 

He established the Amazon Labor Union last year, calling for higher pay, stronger medical benefits, anti-discrimination policies and better leave among other changes.

 

The 2,654 to 2,131 victory gives his group the right to negotiate a contract with Amazon for the roughly 8,000 workers at the Staten Island warehouse.

 

His team is also behind a second union campaign at a smaller warehouse in the same industrial park, which is scheduled for a vote later this month.

 

"There's no doubt in my mind we're going to be successful in that one as well," he said.

 

Organisers said Amazon made critical mistakes ahead of the vote, such as pushing to reverse policies relaxed under Covid, including allowing workers to keep their mobiles with them while working.

 

Still they said their win in some ways surprised even them, despite the intense efforts they had made to reach out to workers and make their case ahead of the vote.

 

"Watching all of this come true is pretty crazy," said Karen Ponce, Amazon worker and secretary of the Amazon Labor Union.

 

Wider movement

The union drives at Amazon come amid an upswell of labour activism in the US.

 

In recent months, organisers have led successful campaigns at coffee chain Starbucks, media outlets, smaller retailers and others.

 

Analysts say the pandemic galvanised workers worried about their safety. The rapid rebound of the economy since the coronavirus shock has also produced an unusually tight labour market, giving workers more leverage.

 

But across the US, just 6.1% of private sector workers belong to unions.

 

"It continues to be very difficult for workers to organize collectively," Prof Givan said.

 

What was the outcome of the Amazon union election in Alabama?

In Alabama, workers at the Bessemer warehouse voted 993 to 875 against joining the Retail, Wholesale and Department Store Union, regulators said on Thursday.

 

More than 400 challenged ballots have yet to be counted and could change that result.

 

The unofficial tally showed a much closer election than the lopsided victory that Amazon claimed after last year's election, which regulators later declared invalid, ordering a do-over citing labour rule violations by Amazon.

 

Turnout was also lower, with less than 40% of the more than 6,000 people working at the Bessemer warehouse casting votes in the election.

 

Stuart Appelbaum, president of the Retail Wholesale and Department Store Union, which led the unionising drive in Alabama, said he was excited by the possibility of a union victory in New York.

 

Crediting Mr Smalls and his team, he also said their win in part reflected differences between New York - where one in five workers is unionised - and Alabama, which is a notoriously anti-labour state.

 

He said his union's initial union effort at the Amazon warehouse in Alabama last year had "ignited a movement".

 

"Regardless of the final outcome, workers here have shown what is possible," he said at a press conference on Thursday following the Alabama count. "This is a sign of more to come."-BBC

 

 

 

Russia says it won't cut off gas supplies yet in rouble payment row

Russia has said it will not cut off gas exports to Europe yet in a standoff over its demand to be paid in roubles.

 

Russian president Vladimir Putin signed a decree on Thursday stating buyers must pay in roubles through Russian bank accounts from Friday.

 

The Kremlin said this would not affect shipments which were already paid for, with payments for deliveries after 1 April due in mid-April at the earliest.

 

The country is seeking to shore up the rouble as Western sanctions bite.

 

"Does this mean that if there is no confirmation in roubles, then gas supplies will be cut off from 1 April? No, it doesn't, and it doesn't follow from the decree," Kremlin spokesperson Dmitry Peskov said.

 

The EU said it was talking to energy companies about how to pay for gas.

 

 

Ditte Juul Jorgensen, the director general of the European Commission energy directorate, tweeted that the EU was "working closely with member states and operators... to establish a common approach on currency payments for gas contracts with Russia".

 

Since Russia invaded Ukraine Western nations have placed sanctions on Russian companies and individuals.

 

Unlike the US and Canada, the EU has not placed bans on oil or gas, as its member nations are heavily reliant on it.

 

Ukraine war: Russia threatens to stop supplying gas if not paid in roubles

Germany and Austria take step towards gas rationing

Russia supplies the European Union (EU) with about 40% of its gas and a third of its oil imports which are mainly paid for in euros and dollars.

 

The EU has no easy substitutes if supplies are disrupted, but at the same time, Russia is making €400m (£340m) per day from gas sales to the bloc and it has very few options for rerouting this supply to other markets.

 

Member states in the EU have been on alert for any disruption to Russian gas imports as tension continues between Russia and the West over the Ukraine invasion.

 

On Wednesday, Germany and Austria took the first steps towards gas rationing. Germany urged consumers and companies to reduce consumption in anticipation of possible shortages, while Austria said it was tightening its monitoring of the gas market.

 

A crunch point appeared to be in the offing when Moscow issued a decree on Thursday requiring foreign buyers of Russian gas to open rouble accounts from Friday or else risk being cut-off.

 

Moscow did, however, offer a mechanism for buyers to obtain roubles via the state-run Gazprombank.

 

The bank has escaped sanctions from the EU to allow energy trading to continue.

 

The UK has imposed sanctions on Gazprombank, but imports less than 5% of its gas from Russia.

 

UK and Dutch wholesale gas prices fell on Friday after the announcement that Russian gas supplies would not be halted immediately.

 

Westbound flows of Russian gas via major routes were steady on Friday.

 

'Storm in a teacup'

European experts have said Mr Putin's decree is mainly aimed at shielding Russian energy giant Gazprom from future sanctions.

 

If Gazprombank collects the money, the EU could not sanction it without cutting gas.

 

"It amounts to a warning from Putin not to tighten financial sanctions further," said Jeffrey Schott of the Peterson Institute of International Economics think tank.

 

Jack Sharples of the Oxford Institute for Energy Studies said: "What sounded grandiose has turned into a storm in a teacup.

 

"By making it the main recipient of money for gas, it puts an extra shield against sanctions around Gazprombank."

 

One European official said that he believed Mr Putin had demanded the switch to rouble payments to test who would go along with it, but no-one did.

 

"After the pushback, he is trying to find a system where he could claim that he had won, while in fact something close to the status quo is continuing," the official said.-BBC

 

 

 

US jobs rise again as firms raise wages to woo staff

US employers added 431,000 jobs last month as the American economy continued to rebound from the shock of the coronavirus pandemic.

 

The figures from the Labor Department marked the 15th month in a row of job gains and helped to push the unemployment rate down to 3.6%.

 

Bars, restaurants and hotels were among the businesses leading the hiring last month.

 

The US has now regained nearly all the jobs lost since the pandemic hit.

 

Faced with the tight labour market, businesses are paying more to woo workers.

 

The average weekly wage in March was up 5.6% from a year ago, the Labor Department said. However, those gains continue to lag inflation, which hit 7.9% in February, a 40-year high.

 

Terence Tubridy is managing partner of the IGC Hospitality Group in New York, which runs more than a dozen restaurants and employed 800 people before the pandemic hit.

 

He said his top challenge is hiring right now, but pay isn't the only factormaking it hard to find workers.

 

He said some former staff have left the industry, as their lives shifted in the pandemic. The shadow of the pandemic also continues to hurt - he said - discouraging potential recruits like wannabe actors from moving to the city.

 

He expects the industry's hiring crunch to last for two or three years.

 

"I don't think this is going away," he said.

 

Pay rises set to slow?

The monthly report was another sign of healthy growth in the world's largest economy, despite challenges posed by supply disruptions stemming from the Ukraine-Russia war and coronavirus.

 

"There were no signs that the war in Ukraine or the surge in oil prices had put a temporary hold on hiring in any parts of the economy," said Michael Pearce, senior US economist at Capital Economics.

 

The US central bank raised interest rates for the first time since 2018 last month, in an effort to dampen demand and check the rising prices. It signalled plans for further increases over the coming year.

 

Analysts said the strong hiring last month will confirm policymakers' views that the labour market is strong enough to handle rate rises.

 

But some economists said the Federal Reserve should proceed with caution, pointing to signs that the pay gains may be peaking.

 

The labour force participation rate - at 62.4% last month - also remains a percentage point lower than it was in February 2020, a sign that more people are available to hire.

 

"This temporary leverage that workers have had over the last few months, as they were a bit more scarce .... unfortunately I'm not sure that's going to last," said Elise Gould, senior economist at the left-leaning Economic Policy Institute in Washington.-BBC

 

 

 

Fracking 'worth exploring' says British Gas owner Centrica

Fracking could boost UK energy supplies and reduce bills, according to Chris O'Shea, chief executive of British Gas owner Centrica.

 

The UK government placed a moratorium on fracking in 2019, amid fierce local opposition and fears of earthquakes.

 

Mr O'Shea said there needed to be an "informed debate" about it.

 

However, environmental group Greenpeace said there had been "a decade of hype and bluster" around shale gas.

 

Fracking is the process of drilling into the earth, then directing a high pressure mixture of chemicals into layers of rock to release shale gas.

 

"We do have to be careful, if it does cause earthquakes, it's not something we should do," Mr O'Shea said.

 

 

The UK met 48% of its gas demand from domestic supplies in 2020, and bought the rest on international markets, according to the Department for Business, Energy and Industrial Strategy.

 

Mr O'Shea told BBC Radio 5Live's Big Green Money show: "The key question is, do we want to source our gas from overseas? Or do we want to have more gas domestically? And shale is certainly worth exploring."

 

The UK has only ever had one fracking site in operation, which halted in 2019 following a report by the Oil and Gas Authority (OGA).

 

The indefinite suspension came after the OGS found was not possible to predict the probability or size of tremors caused by the practice.

 

However, this year regulators gave owners Cuadrilla an extra year to re-evaluate the site before it could be sealed up in 2023.

 

Mr O'Shea urged informed debate on fracking.

 

"I can't tell you what the right answer is, but I can tell you we don't achieve that by people taking entrenched positions that are not based on the full facts," he said.

 

He added that British Gas and Centrica had held off discontinuing a share in a fracking licence while it waits to see if the government will revive the possibility of shale gas extraction.

 

"We have a small residual share in a fracking licence which we were in the process of discontinuing," he said.

 

"What we've decided to do is just hold off for a year."

 

In March, the Energy Minister Greg Hands said in Parliament that shale gas "could be part of our future energy mix," but added that it would need the "support of local communities."

 

Mr Hands also said the government was clear that the gas was "not the solution to near-term issues," adding that it would take years before commercial quantities could be produced.

 

A group of Tory MPs known as the Net Zero Scrutiny Group has been pushing for the government to end its fracking ban saying that it could help secure energy supplies for Britain.

 

Many environmental groups have said they were concerned about the potential for fracking to cause earthquakes.

 

At Cuadrilla's site in Lancashire, more than 120 small tremors were recorded while it was drilling.

 

Rosie Rogers, head of energy at Greenpeace UK, told the BBC: "After a decade of hype and bluster, all the fracking industry has given us are two holes in a muddy field and some minor earthquakes."

 

Previously, Greenpeace has said that fracking would not improve energy security, because any gas extracted would belong to the gas firm doing the drilling, not to Britain, and it would be sold on international markets.

 

"It will take many years to develop and if it ever gets produced, it will be sold to the highest bidder on the international market, with no impact on our energy bills," a Greenpeace spokesperson said.

 

"If the UK and Europe want to end their dependence on Russian gas, the quickest way to do that is by insulating homes, installing heat pumps and boosting renewables."-BBC

 

 

 

Warning of fresh energy bill shock in October as prices rise again

People have been warned to brace for another huge rise in energy bills when the next cap takes effect in October.

 

This could add another £629 a year to a typical bill, on top of Friday's unprecedented £700-a-year rise, says energy consultancy Cornwall Insight.

 

The expected rise in bills just as colder weather kicks in has prompted calls for fresh government support to those struggling to pay.

 

Energy prices have been affected by the Ukraine war and pressure on suppliers.

 

The most up-to-date prediction from Cornwall Insight would, if accurate, push annual energy bills for a household using a typical amount of gas and electricity to up to £2,600 from October.

 

A typical bill is expected to fall back to the current level in summer 2023, although longer-term forecasts are tricky.

 

Bill Bullen, the boss of Utilita, warned that elderly people and children were at serious risk over the next winter because of a lack of heating.

 

"We are going to see an extra £500 or £600 added to bills in October, and frankly the chancellor's going to have to fund that entirely for low-income households," he told the BBC.

 

"He won't be able to afford to take this problem away for everybody... but for customers who can't respond to that price [increase], that's where the help needs to be targeted."

 

The warning comes on top of a huge rise in what energy suppliers can charge customers from Friday. The £693 a year rise in a typical energy bill will affect 18 million households, with 4.5 million customers on prepayment meters facing an even bigger increase of £708 a year.

 

At the same time, a host of bill hikes take effect with council tax, water bills and car tax going up for some on 1 April.

 

Minimum wage rates are rising which, along with some financial support from the government, is partially softening the blow.

 

Why are prices rising so quickly?

Prices in general are rising at their fastest rate for 30 years, but the sudden increase in the cost of energy is the most significant for individuals.

 

New official figures suggest four in 10 bill-payers have been finding it very, or somewhat, difficult to afford their energy costs.

 

The governor of the Bank of England, Andrew Bailey, said the country is facing the biggest single shock from energy prices since the 1970s.

 

It is the largest increase, by far, in the energy regulator Ofgem's price cap, since it was introduced.

 

The cap, set every six months for England. Wales and Scotland, is designed to protect domestic customers from the volatility of wholesale energy prices.

 

Chris O'Shea, chief executive of Centrica, which owns the UK's largest supplier British Gas, said his business was supporting struggling customers and was giving grants to those most in need.

 

"We would love to do more. The reality is that for a retail energy company, the market has gone through quite a change, and profits have reduced quite substantially," he told the BBC's Big Green Money Show.

 

However, he accepted that profits had risen sharply for the heavily taxed exploration arm of the business.

 

The Office for National Statistics said that low earners, renters, parents, people with disabilities, unemployed people and divorcees were least able to afford a bill shock.

 

The government has said it was taking "decisive action" to help people with the cost of living, including a £200 reduction to energy bills in October - which needs to be paid back in instalments, and a £150 reduction in council tax bills for 80% of billpayers.

 

Speaking to BBC Breakfast, Sir Keir Starmer, the leader of the Labour party, branded the government's response as "pathetic".

 

He accused the government of forcing people to choose between heating their homes or eating.

 

He said that the Labour party would introduce a one-off windfall tax on the profits of oil and gas companies and use the money to help households struggling to cope with rising energy bills.

 

But Chancellor Rishi Sunak told the BBC's Newscast: "I'm confident in what we've done. I know it's tough for people. We're facing a very difficult situation with the price of things going up and I want to do what we can to ameliorate some of that, but I'm also honest with people that we can't ameliorate all of it, sadly."

 

-BBC

 

 

 

Nigeria: Investment in Road Infrastructure Building Nigeria's Economy - Buhari

President Muhammadu Buhari has said his administration has focused on road infrastructure due to its effect in facilitating job creation and strengthening the economy.

 

Speaking at the 7th Edition of the African Road Builders Conference in Abuja, President Buhari stated that the roads under construction were to realize the Trans African Highways project that sought to connect the African continent.

 

"The roads and bridges under construction, expansion and rehabilitation nationwide have been a major boost for the growth of our economy, keeping people at work; driving a supply value chain, stimulating productivity at quarries, cement factories, steel factories and the petroleum sector for lubricants, fuel and bitumen."

 

Represented by the Minister of Works and Housing, Babatunde Fashola, President Buhari said road investment made a huge contribution to the 3.40% GDP recorded in 2021 which is the country's biggest in the last seven years.

 

On the importance of some of the projects, he said "the Apapa-Oworonshoki highway in Lagos is strategic for trade and business facilitation to support our busiest and largest seaport in Apapa and Tin Can Island.

 

"The Suleja-Minna highway is critical to our petroleum distribution network and access to strategic petroleum products depot in Niger State; and it is receiving attention, while the Calabar-Itu-Odukpani unlocks access to agricultural produce and supports mining and extractive activities for construction in the South South and South East of Nigeria."-Daily Trust.

 

 

 

Nigeria: Govt May Name Concessionaires for 4 Airports This Week

Barring last minute change, the Federal Government may name the concessionaires for the four international airports this week, Daily Trust gathered at the weekend.

 

The airports are the Murtala Muhammad International Airport (MMIA), Lagos; the Nnamdi Azikiwe International Airport (NAIA), Abuja; Mallam Aminu Kano Airport, Kano and the Port Harcourt International Airport, Omagwa, Rivers State.

 

The Ministry of Aviation under its Airport Concession Programme is on the verge of concluding the process as directed penultimate week by President Muhammadu Buhari.

Buhari had during the commissioning of the new terminal of MMIA in Lagos directed the ministry to fast-track the process.

 

The request for qualification (RFQ), placed in August last year asked firms or consortia with a track record in airport terminal management and with net worth of N30 billion per bidding firm or consortium to show interest.

 

It was learnt that the Bi-Courtney Aviation Services Limited (BASL), a Singaporean firm, and 11 other local and international firms expressed interest in the concession.

 

Daily Trust reports that the Ministry was supposed to name the concessionaires by the end of the March seven months after it opened bids for the concession.

 

However, it was delayed due to some unforeseen circumstances, according to sources privy to the process.

 

Daily Trust reports that the shortlisted companies are expected to sign a non-disclosure agreement before their names would be unveiled.

 

A source who spoke with our correspondent on the condition of anonymity said, "The Ministry is being meticulous in the whole process and barring any last minute change the preferred bidders would be known this week."-Daily Trust.

 

 

 

Nigeria: We've Spent Over N157 Billion On Second Niger Bridge So Far - Finance Minister

"For me, I can report to Mr President and say I have seen where all the N157 billion has gone to."

 

Nigeria's Minister of Finance, Zainab Ahmed, said the Federal Government has spent over N157 billion on the construction of the 2nd Niger Bridge out of the initial cost of N206 billion.

 

The Federal Government had reviewed the initial cost up to about N400 billion because of rising inflation.

 

Mrs Ahmed disclosed this on Saturday when she inspected the ongoing construction of the 1.6km bridge.

 

The minister was received by the Anambra State Governor, Charles Soludo, represented by the Deputy Governor, Onyeka Ibezim.

The Managing Director, Nigeria Sovereign Investment Authority (NSIA), Uche Orji, and the representatives of the construction firm, Julius Berger Nigeria Plc, were also on ground to welcome the minister.

 

The Ministry of Finance oversees disbursement of funds for the project.

 

Mrs Ahmed said her visit was to gain an insight into how the funds released for the construction of the bridge are being utilised.

 

"For me, I can report to Mr President and say I have seen where all the N157 billion has gone to," she said.

 

She described the bridge as "one of the iconic projects in the country".

 

She said the 2nd Niger Bridge would "uplift the lives and livelihoods" of the people of South-east and South-south parts of the country, when completed.

"People working here are from within the surroundings. So, up to about 20,000 jobs have been created in this project, "she said.

 

The minister expressed delight that two ends of the bridge had been linked. She lauded the construction firm for "introducing some unique innovations" in the construction.

 

How the project is being funded

 

The minister said the project is being funded through the Presidential Infrastructure Development Fund (PIDF) created by President Muhammadu Buhari and managed by the NSIA.

 

PIDF is also used to fund the construction of Lagos-Ibadan expressway and the Abuja-Kaduna-Kano-Road, the minister said.

 

Mrs Ahmed said looted funds recovered from Nigeria's former military dictator, Sani Abacha, were part of the PIDF.

 

The Nigerian government established the PIDF in 2018 as a response to the insufficiency of national annual appropriation to meet the capital and infrastructure commitments of the Nigerian government.

 

It sped up the execution of certain strategic infrastructure projects essential to the growth of Nigeria's economy.

 

The Managing Director of NSIA, Uche Orji, said the Federal Government and the NSIA fund the project. He said other investors might still come in later.

 

"The NSIA brought some of its own capital and there was also added capital that was provided by the Federal Government and some of the capital (was) from returned loot of General Sani Abacha. That is the funding structure.

 

"So, as it stands today, it is purely the NSIA and the Federal Government that is the face of the project," he said.

 

Mr Orji said compensation is paid as the work progresses, to residents whose properties are affected by the construction.

 

The construction of the new bridge began on September 1, 2018.

 

The bridge spans from Asaba in Delta State to Ozubulu, Ogbaru and other communities in Anambra State.

 

The first Niger Bridge, linking Onitsha and Asaba, was completed in 1965 and built by the French construction company, Dumez.-Premium Times.

 

 

 

Kenya: Government Urged to Deal With Cartels Behind Fuel Shortage

Kisumu — The government has been challenged to deal firmly with cartels in the energy sector, causing artificial shortage of oil, so as to have petrol prices increased.

 

Ugenya Member of Parliament, David Ochieng, said it was high time that Parliament, the Directorate of Criminal Investigations and the Competition Authority of Kenya took up the matter and save Kenyans from the current fuel crisis.

 

Speaking in Ugenya, Ochieng who presided over the distribution of maize seeds to his constituents, said the country had enough stock of fuel, but cartels had colluded to cause artificial shortage.

"I want to request Parliament, Directorate of criminal investigations and the Competition Authority of Kenya that we must kick-out the cartels denying Kenyans freedom to go about their daily businesses because they are hoarding fuel so that they may increase prices," said the MP, who is also the Party Leader of the Movement for Development and Growth.

 

Ochieng said Kenyans will not accept to be fleeced by the cartels, adding that he will take up the matter in Parliament, to have key petroleum players summoned for questioning.

 

The Legislator called on the Competition Authority to cancel the licenses of fuel vendors hoarding the commodity.

 

"We must single them out, ensure that we know who is hoarding fuel and revoke and withdraw their licenses," said the MP.

 

Ochieng's statement comes in the wake of a biting fuel shortage in various parts of the country, with long queues of potential buyers being reported in Siaya and Bondo.

 

The few petrol stations that had the commodity in Siaya County were restricting motorists to a maximum of fuel worth Sh1,500. - Kna/Capital FM.

 

 

 

Tanzania: No Possible Fuel Crisis, Says Ewura

THE Energy and Water Utilities Regulatory Authority (EWURA) has allayed fears on the possibility of Tanzania facing fuel crisis.

 

The regulator said that the country has enough reserve fuel that will last for at least 30 next days, and that there are other ships carrying petroleum consignment coming to Tanzania.

 

The assurance was issued on Saturday by the Ewura Director General Eng Godfrey Chibulunje, noting that the government was taking all necessary measures to ensure availability of petroleum products in the country.

 

Mr Chibulunje made the statement in response to concerns that were raised by members of Tanzania Editors Forum (TEF) on measures that the government was taking to curb the possible fuel scarcity that may be caused by the ongoing war between Russia and Ukraine.

"Tanzania has petrol reserve which can be used for 27 days, diesel for up to 19 days and kerosene for 14 days, this is to assure you that there is no possibility of fuel scarcity any time soon," he said.

 

He said the fuels are being stored in special deports in Dar es Salaam, Mtwara and Tanga region near the seaports.

 

The EWURA chief also told editors that more ships loaded with fuel consignment were on their way to Tanzania, whereas the government has already placed orders from Arabian countries on more consignments that will arrive later on.

 

Eng Chibulunje was however alarmed by the possible price increase on the price cap index to be announced tomorrow for the month of April.

 

In another development, Mr Chibulunje warned dishonest fuel traders who are planning to create a fake fuel crisis by hiding their stock waiting for the new price to be announced tomorrow.

 

"I'm reminding all dealers that they are under watch throughout the time, if they create a fake crisis, they will be subjected to strong measures as indicated by the law," he cautioned.

 

For his part, EWURA's Technical Manager - Petrol Station section Eng Shaban Seleman issued statistics on the stability of fuel business on Friday.

 

 

He said on Friday petrol stations had sold over 10 million litres of fuel through which 6,300,000 litres were diesel and the remaining 5,481,028 litres were petrol.

 

For his part, TEF Chairperson, Mr Deodatus Balile urged the government to come up with a proper strategy that will expand fuel storage facilities for the country to have stock that will last for a long time.

 

"This might help in the efforts to control the regular increase of petrol price that in turn affects the economy of individuals," he said.

 

He also advised the government to consider starting using alternative sources of energy, including natural gas in the economy.

 

"TEF also advises the government to consider waiving taxes and levies on equipment used to convert cars from petroleum to natural gas use," he said, calling for full engagement of the private sector on executing the plan.-Daily News.

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2022

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


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.

 


 

 


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