Major International Business Headlines Brief::: 21 December 2022

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Major International Business Headlines Brief::: 21 December 2022 

 


 

 


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ü  Elon Musk to quit as Twitter CEO when replacement found

ü  Microsoft-Activision deal: Gamers sue to stop merger

ü  Elon Musk: Only blue tick users to vote in Twitter polls on policy

ü  FTX boss Sam Bankman-Fried agrees to be extradited

ü  3M manufacturing giant to stop making 'forever chemicals'

ü  EU nations agree gas price cap to shield consumers

ü  British Airways: Flights leaving US grounded over technical issue

ü  Government borrowing in November highest on record

ü  Independent shops positive ahead of Christmas

ü  TSB fined £49m over IT system meltdown

ü  Low-deposit mortgage scheme extended for a year

ü  South Africa: Load Shedding Downgraded to Stage 4

ü  Nigeria: 2023 - Transport Unions to Lift Over 1m Personnel, 100,000
Vehicles, 4,200 Boats for INEC

ü  Nigeria: Inflation - Expert Advises Against Continued Monetary Policy
Tightening

ü  Nigeria Ranks Among Countries With Least Internet Censorship

ü  Nigeria: At 16.67%, Foreign Portfolio Investments in Stock Market Hits
Over 9-Year Low

 


 

 


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Elon Musk to quit as Twitter CEO when replacement found

Elon Musk has said he will resign as Twitter's chief executive officer when
he finds someone "foolish enough to take the job".

 

The billionaire promised earlier to abide by the result of a Twitter poll
which saw 57.5% of users vote "yes" to him quitting the role.

 

He says he will still run the software and servers teams after his
replacement is found.

 

Changes on the platform since his takeover have been much criticised.

 

Since Mr Musk bought the social media site in October, he has fired about
half of its staff and attempted a rollout of Twitter's paid-for verification
feature before putting it on pause. The feature was relaunched last week.

 

Civil liberties groups have also criticised his approach to content
moderation, accusing him of taking steps that will increase hate speech and
misinformation.

 

On Friday, Mr Musk was condemned by the United Nations and European Union
over Twitter's decision to suspend some journalists who cover the social
media firm.

 

The UN tweeted that media freedom was "not a toy", while the EU threatened
Twitter with sanctions.

 

This is the first time the multibillionaire has responded to the poll
launched on Sunday asking if he should resign. Finding someone to take over
the social media platform may be a challenge, according to Mr Musk. Some
people speculate Twitter co-founder Jack Dorsey could also come back to run
the company. He resigned as chief executive in November 2021.

 

"No one wants the job who can actually keep Twitter alive," he tweeted
following the poll.

 

Other names mentioned as possible replacements include Sheryl Sandberg,
Facebook's former chief operating office, Sriram Krishnan, engineer and
close confidante to Mr Musk, and Jared Kushner, US former presidential
adviser and son-in-law of Donald Trump.

 

In the past Mr Musk has obeyed Twitter polls. He is fond of quoting the
Latin phrase vox populi, vox dei which roughly means "the voice of the
people is the voice of God".

 

In response to a tweet saying Twitter Blue subscribers "should be the only
ones that can vote in policy related polls. We actually have skin in the
game", Mr Musk said: "Good point, Twitter will make that change."

 

Twitter's paid-for verification feature was rolled out for a second time
last week after its launch was paused. The service costs $8 per month, or
$11 for people using the Twitter app on Apple devices, and gives subscribers
a "blue tick".

 

Previously a blue tick was used as a badge of authenticity and was free.

 

For weeks, investors have called on Mr Musk to step down from running the
social media platform, saying he has been distracted from properly running
Tesla.

 

Shares in the the electric car company have plummeted more than 65% over the
past year.

 

Mr Musk sold billions of dollars worth of Tesla shares to help fund his
purchase, which helped to push the shares down.

 

"Finally a good step in the right direction to end this painful nightmare
situation for Tesla investors," said Dan Ives from investment firm Wedbush
Securities after Mr Musk's tweet on Tuesday.-BBC

 

 

 

 

Microsoft-Activision deal: Gamers sue to stop merger

Microsoft faces legal action from 10 gamers to block its merger with Call of
Duty maker Activision Blizzard.

 

The lawsuit filed in a US federal court says the $69bn (£56bn) deal by the
Xbox console maker to purchase its rival will "create a monopoly in the
video game industry".

 

The complaint comes two weeks after US regulators filed a case with an
administrative judge to block the deal.

 

The merger would be the largest tech deal ever in the video gaming market.

 

The proposed acquisition would give Microsoft "far-outsized market power in
the video game industry," according to the complaint "with the ability to
foreclose rivals, limit output, reduce consumer choice, raise prices, and
further inhibit competition."

 

Almost two weeks ago, the Federal Trade Commission (FTC) raised similar
concerns in their complaint. The US business watchdog said Activision was
one of a small number of top video game developers that made high-quality
games for multiple devices.

 

The proposed acquisition would give Microsoft "both the means and motive to
harm competition" by manipulating pricing, making games worse on its
competitors' video game consoles, "or withholding content from competitors
entirely, resulting in harm to consumers," the agency said in a press
release.

 

After the FTC filed its lawsuit, Microsoft president Brad Smith said the
company had "complete confidence in our case and welcome the opportunity to
present our case in court".

 

Microsoft also announced it will make Call of Duty available on Nintendo for
10 years if the purchase went through and made a similar offer to rival Sony
which makes the PlayStation console.

 

"This sounds alarming, so I want to reinforce my confidence that this deal
will close," Activision Blizzard chief executive Bobby Kotick wrote in a
letter to staff that was shared on the company's website. "The allegation
that this deal is anti-competitive doesn't align with the facts, and we
believe we'll win this challenge."

 

This has become one of the most-high profile legal fights to emerge from US
President Joe Biden's pledge to take a harder line against monopolies.

 

The takeover, which was announced in January, also faces legal action in the
European Union and the UK.

 

Microsoft has not responded to the BBC for comment.-BBC

 

 

 

Elon Musk: Only blue tick users to vote in Twitter polls on policy

Elon Musk has said Twitter will only allow accounts with a blue tick to vote
on changes to policy after a majority of users voted for him to quit.

 

Mr Musk launched a Twitter poll asking if he should step down as chief
executive - 57.5% of users voted "yes".

 

Since then, he has not commented directly on the result of the poll.

 

But he has said that Twitter will alter its rules so that only people who
pay for a subscription can vote on company policy.

 

One user claimed that so-called bots appeared to have voted heavily in the
poll about Mr Musk's role at the firm. Mr Musk said he found the claim
"interesting".

 

The billionaire had said when he ran the poll that he would abide by the
result. If he does quit as chief executive, he will remain as Twitter's
owner.

 

Bruce Daisley, former vice president of Twitter, compared any potential
change to that of a football manager. "The chairman still remains and Elon
Musk is going to be that ever-present voice in the back of the room," he
told the BBC's Today programme.

 

However, Mr Musk's intentions remain unclear. Although US broadcaster CNBC
tweeted on Tuesday that Mr Musk is actively searching for a new chief
executive for Twitter, Mr Musk responded with two laughing emojis.

 

In response to a tweet saying Twitter Blue subscribers "should be the only
ones that can vote in policy related polls. We actually have skin in the
game", Mr Musk said: "Good point, Twitter will make that change".

 

Twitter's paid-for verification feature was rolled out for a second time
last week after its launch was paused. The service costs $8 per month, or
$11 for people using the Twitter app on Apple devices, and gives subscribers
a "blue tick".

 

Previously a blue tick was used as verification tool for high-profile
accounts as a badge of authenticity and was free.

 

On Monday, Mr Musk held a poll on his future as chief executive. More than
17.5 million users voted and the majority backed him stepping down.

 

While the poll was running he replied to one user suggesting there was no
replacement chief executive lined up, saying: "No one wants the job who can
actually keep Twitter alive. There is no successor."

 

The technology tycoon, who also runs electric car maker Tesla and space
rocket firm Space X, has faced much criticism since taking over the site.

 

He has obeyed the results of his Twitter polls in the past and quoted the
phrase "vox populi, vox dei", a Latin phrase which roughly means "the voice
of the people is the voice of God".

 

Who is Elon Musk?

Twitter users vote in favour of Musk stepping down

Mr Musk bought Twitter for $44bn (£36bn) in October after attempting to back
out of the deal.

 

Since taking control, he has been criticised for his approach to content
moderation, with some civil liberties groups accusing him of taking steps
that will increase hate speech and misinformation.

 

On Friday, he was condemned by the United Nations and European Union over
Twitter's decision to suspend some journalists who cover the social media
firm. He has also fired about half of Twitter's staff.

 

Mr Daisley said through Mr Musk's activity, you could "get a hint" over what
he was thinking through his replies to users.

 

"He does seem to be quibbling with the vote," he added.

 

Mr Musk has also been accused of neglecting his electric car company Tesla,
which is where most of his wealth is. Tesla shares have lost more than 60%
in value this year, with some saying his obsession with Twitter is
destroying the brand.

 

Last week, Leo KoGuan, the third largest individual shareholder in Tesla,
called for Mr Musk to step down as the boss of the electric car maker.

 

"Elon abandoned Tesla and Tesla has no working CEO. Tesla needs and deserves
to have [a] working full time CEO," he tweeted.-BBC

 

 

 

FTX boss Sam Bankman-Fried agrees to be extradited

Sam Bankman-Fried, the former boss of the failed cryptocurrency exchange
FTX, has agreed to be extradited to the US to face charges, the BBC
understands.

 

The 30-year-old, who lives in the Bahamas, has been accused of committing
"one of the biggest financial frauds in US history", US authorities have
said.

 

A source close to Mr Bankman-Fried, who denies the allegations, told the BBC
he had agreed to be extradited.

 

FTX has filed for bankruptcy, leaving many people unable to withdraw funds.

 

According to a court filing, FTX owed its 50 largest creditors almost $3.1bn
(£2.5bn).

 

It is not clear when Mr Bankman-Fried will be extradited to the US,
following his arrest on 12 December. A court hearing in the Bahamas is
scheduled for Wednesday that could set the stage for his extradition to the
US, Reuters reported.

 

Among the most serious allegations against him is that he used billions of
dollars of customer funds to prop up his investment trading company Alameda.

 

Last week, Damian Williams, the US Attorney for the Southern District of New
York, said Mr Bankman-Fried was accused one of the largest frauds in US
history.

 

The FTX founder was also accused of using "tens of millions" in ill-gotten
gains for illegal campaign contributions to Democrats and Republicans alike,
Mr Williams said.

 

The Securities and Exchange Commission said the man who was formerly
nicknamed the "King Of Crypto" had built a "house of cards on a foundation
of deception".

 

However, Mr Bankman-Fried has sought to distance himself from accusations of
illegal activity and in a BBC News interview before his arrest said: "I
didn't knowingly commit fraud. I don't think I committed fraud. I didn't
want any of this to happen. I was certainly not nearly as competent as I
thought I was."

 

Mr Bankman-Fried has also denied allegations he must have been aware that
Alameda Research was using FTX customer funds.

 

The FTX exchange allowed customers to trade normal money for
cryptocurrencies such as Bitcoin.

 

Cryptocurrencies are not traditional currencies, but are stored online and
act more like investment vehicles or securities - often with a high degree
of volatility.

 

FTX had an estimated 1.2 million registered users who were using the
exchange, but many have been left wondering if they will ever get back their
cash trapped in FTX's digital wallets.

 

Mr Bankman-Fried was once viewed as a young version of legendary US investor
Warren Buffett, and as recently as late October had a net worth estimated at
more than $15bn.-BBC

 

 

 

3M manufacturing giant to stop making 'forever chemicals'

Manufacturing giant 3M has said it will stop making and using so-called
"forever chemicals", common materials that have been linked to a range of
health problems including cancer.

 

The firm, which also makes Post-Its, cited increased regulatory and consumer
concern about the substances, known as PFAS, to explain the move.

 

The chemicals are used in many everyday items, including food packaging.

 

Campaigners called the decision a "win for public health".

 

Known for their water-resistant and non-stick properties, the substances can
be found in fire-fighting foams, mobile phones, clothing and non-stick
cooking pans.

 

But researchers have long been concerned about the chemicals - known as per-
and polyfluoroalkyl substances or PFAS - because they do not break down
under normal environmental conditions.

 

They have been found in dangerous concentrations in water, soil and food and
can also linger in the body.

 

In August, the US said it was considering designating some "forever
chemicals" - of which there are thousands - as hazardous. The UK and
European Union have already taken steps to ban some of them, as have some
local governments in the US.

 

Companies are also facing pressure from lawsuits and campaigners.

 

In recent years, a growing number of major firms including McDonald's and
Burger King, outdoor gear maker GoreTex and some UK supermarkets such as
Asda and Co-op have pledged to phase out use of the chemicals.

 

McDonald's, for example, has said it will remove the chemicals from its fast
food packaging by 2025.

 

In announcing its decision, 3M stood by the safety of the chemicals, which
chief executive Mike Roman said "can be safely made and used".

 

But he said the firm saw an "opportunity to lead" and was positioning itself
for long-term growth by moving to phase out the substances.

 

The company, which makes tens of thousands of industrial and everyday
products, said it would honour current orders but stop making the chemicals
by the end of 2025. It is also planning to phase out use of the substances
in its own products by the end of that year.

 

"With these two actions, 3M is committing to innovate toward a world less
dependent upon PFAS," the firm said.

 

The firm had already phased out use of two PFAS in the early 2000s. It said
it currently generates about $1.3bn (£1.1bn) in sales each year by making
the chemicals - less than 5% of its overall revenue.

 

Joseph Allen, an associate professor at Harvard's School of Public Health
who has studied the substances, called the decision by 3M a "massive public
health win", writing on Twitter that it marked "the beginning of the end of
Forever Chemicals".

 

US-based advocacy organisation Toxic-Free Future said it "cautiously"
applauded the move by 3M, adding that the company must still be held
accountable for its role. Lawsuits have accused the firm of being aware of
the risks of the chemicals since at least the 1970s.

 

"While today's news is a win for public health, 3M must be held accountable
for their decades of pollution," said Mike Schade, director of the
organisation's Mind the Store campaign. "No-one's drinking water should be
polluted for a rain jacket."

 

Clare Cavers, senior project manager at UK-based environmental charity
Fidra, also said while she welcomed 3M's decision, more needed to be done.

 

"Such voluntary action supports moves towards existing alternatives to PFAS,
and we now need UK legislation to ensure these changes are replicated across
all sectors," she said.-BBC

 

 

 

EU nations agree gas price cap to shield consumers

European Union nations have agreed to cap soaring wholesale gas prices to
protect consumers across the bloc.

 

>From 15 February, prices will be limited if they breach 180 euros per
megawatt hour for three days running.

 

It follows weeks of wrangling in which Germany and others sought safeguards
to ensure the cap would be suspended if it had negative consequences.

 

Gas prices have spiked as EU countries seek ways to import less Russian gas
following its invasion of Ukraine.

 

Previously Moscow supplied 40% of the gas used across the bloc, but those
flows have fallen sharply putting pressure on market prices.

 

Jozef Skiela, the Czech minister of industry and trade said the EU had
"succeeded in finding an important agreement that will shield citizens from
skyrocketing energy prices".

 

"Once again, we have proved that the EU is united and will not let anybody
use energy as a weapon."

 

In a statement, Kremlin spokesman Dimitri Peskov called the cap
"unacceptable" and said it was an attack on market pricing.

 

The cap comes after Europe's benchmark price for natural gas delivered via
pipeline briefly surged to nearly 340 euros per megawatt hour this summer -
more than three times what it is now.

 

It is temporary and will last for a year, the European Council said.

 

Once the cap is activated, gas across the bloc will have to be sold at a
level equivalent to or below the global price of liquified natural gas
(LNG), plus 35 euros.

 

This will last for at least 20 working days, the Council said, although the
cap could be automatically deactivated if prices fell again.

 

Divisions

The measure has been months in the making, with EU governments starkly
divided on how to implement it.

 

Some countries such as France and Spain wanted to urgently bring in a limit
to protect consumers.

 

But others including Germany, Austria and Denmark were concerned the measure
would scare off suppliers of liquified natural gas (LNG) from the Middle
East and elsewhere.

 

In the end the sceptics backed the 180-euro cap, which was much lower than a
275-euro limit initially proposed by the European Commission.

 

The cap will include a suspension mechanism that would kick in if energy
supplies came under threat or demand began to surge.

 

Poland's Prime Minister Mateusz Morawiecki hailed the agreement on Twitter
on Monday.

 

"At the recent meetings in Brussels, our majority coalition managed to break
the resistance - mainly from Germany," he wrote. "This means the end of
market manipulation by Russia and its [main supplier] Gazprom."-BBC

 

 

 

British Airways: Flights leaving US grounded over technical issue

British Airways has apologised after flights due to depart from the US were
grounded for several hours.

 

The airline said a technical issue that affected some of its long-haul
flight planning systems overnight had now been resolved.

 

BA passengers reported waiting for several hours in airports, with flights
eventually departing after long delays.

 

A spokesman for the airline said the company was "sorry for the disruption
caused to our customers' travel plans".

 

It is understood that short-haul flights were not affected by the technical
problems and there were no safety concerns.

 

There were long delays on long-haul flights, including those between
London's Heathrow airport and the US and Canada, and other flights serving
Gatwick airport, including arrivals from Cancun, Mexico.

 

Flights at Heathrow impacted by the delays are now operating, but Terminal 5
is expected to be busy this afternoon as a result.

 

"We have additional colleagues on hand to support passengers and get them on
their journeys as quickly as possible," a spokesperson for the airport said.

 

It is not the first time BA has been hit by technical problems.

 

In February, the airline apologised after cancelling all short-haul flights
from Heathrow due to IT issues.

 

'Plane delayed 20 hours'

On Monday night passengers took to Twitter to report waiting at John F
Kennedy International Airport for more than three hours.

 

Others said they had been sitting on planes parked on runways for hours,
before being moved back to the airport.

 

One of those delayed was British actress and model Elizabeth Hurley, who
tweeted on Tuesday morning: "@British_Airways Stranded at Antigua airport
with no food or water, taxis or hotels offered yet. Plane delayed 20 hours."

 

An hour later she said: "Still stranded - no food, water or hotel. Pretty
dodgy service @British_Airways."

 

In a statement in the early hours of Tuesday, BA said: "Our flights due to
depart the USA tonight are currently delayed due to a technical issue with
our third-party flight planning supplier, which we are urgently
investigating."

 

It confirmed hours later that the problem had been fixed.

 

Separately, the airline has been dealing with delays resulting from the cold
weather last week, as some flights were held up due to planes needing to be
de-iced.

 

This has had a knock-on effect on baggage handling, with people on social
media sharing pictures of bags piled up at Heathrow.

 

"We're doing everything we can to reunite our customers with their delayed
baggage as soon as possible," BA said.-BBC

 

 

Government borrowing in November highest on record

Government borrowing in November hit its highest level for the month since
records began, official figures said.

 

Borrowing - the difference between spending and tax income - stood at £22bn
as the public sector spent more than it received.

 

Government spending on cost-of-living payments and energy bill support for
households helped fuel the rise.

 

The ONS said the interest on government debt in November rose to £7.3bn, the
highest figure since 1997.

 

"Since mid-2021, the cost of servicing central government debt has increased
considerably," the ONS said.

 

"The recent high levels of debt interest payable are largely a result of
higher inflation."

 

November's borrowing figure was £13.9bn more than in November last year,
which is the highest level for the month since records began in 1993.-BBC

 

 

Independent shops positive ahead of Christmas

Shops in a town with 85 independent retailers said it had been a positive
month despite the impact of the rising cost of living.

 

Retail sales volumes dropped 0.4% in November, figures from the Office of
National Statistic (ONS) showed.

 

But traders in Hitchin, Hertfordshire, said they were seeing sales return to
a pre-pandemic level.

 

"It’s so nice to see people about in town again," Charlotte Owen, co-owner
of clothes shop H-Town Rags, said.

 

Shop co-owner Charlotte Owen said customers were positive about this
Christmas

 

She said: "I think this is first year [since Covid] people have been
super-excited and keen to get back into everything.

 

"But we have such a supportive community here in Hitchin with a lot of
independent businesses, so we feel very lucky as well."

 

'Think creatively'

Barbara Scott, who runs homewares store Culture Trend in Hitchin, said she
was "very worried" but the rising cost of living.

 

"All we can do is do our best," she said.

 

"We are actually back to where we were before the pandemic so [this month]
has been extremely good."

 

Many retailers were hoping for good Christmas sales after the impact of the
pandemic

 

Richard Barry, from Arkley Fine Art in the town, said the pandemic was a
"challenge" but there had been positives.

 

"We’re an independent business so we’ve had to think creatively with
different shows and exhibitions, so it’s been good for us," he said.

 

Council pauses road closures to allow for Christmas shopping

 

The growing city that lost 62 shops in two years

 

Town sees one of UK's biggest shifts from retail to dining

 

The British Independent Retailers Association (Bira) said the strikes by the
Royal Mail meant shopping in-person or collecting in store will ensure
"certainty" over Christmas purchases.

 

But it warned small retailers would be reliant on Royal Mail to make
deliveries and said they hoped to maximise sales at Christmas time.-BBC

 

 

 

TSB fined £49m over IT system meltdown

TSB has been fined nearly £49m for an IT meltdown in 2018 that caused chaos
and left its customers unable to access online accounts for several weeks.

 

The UK's financial regulator said the failings were "widespread and serious"
and led to "significant disruption".

 

The problems began in April 2018 when an attempt to move data to a new
computer system went wrong.

 

All areas of TSB's services were affected, including branch, telephone and
online banking.

 

The problems were not fully resolved for eight months and "a significant
proportion of its 5.2 million customers were affected by the initial
issues", the Financial Conduct Authority (FCA) said.

 

It led to the departure of the bank's then chief executive Paul Pester.

 

Mark Steward, executive director of enforcement and market oversight at the
FCA, said: "The failings in this case were widespread and serious which had
a real impact on the day-to-day lives of a significant proportion of TSB's
customers, including those who were vulnerable."

 

The FCA said TSB had paid £32.7m in compensation to customers who were
affected by the problems.

 

TSB chief executive Robin Bulloch said: "We'd like to apologise again to TSB
customers who were impacted by issues following the technology migration in
2018. We worked hard to put things right for customers then and have since
transformed our business."

 

How it all went so wrong for TSB

The problems were triggered when TSB tried to move 1.3 billion customer
records from an old system run by its former parent bank, Lloyds, to one
managed by its current Spanish owner, Sabadell.

 

However, it proved disastrous with many customers being locked out of their
accounts and some customers being given access to the confidential records
of others.

 

Cases included people trying to complete house purchases and unsure whether
they could move in. The BBC spoke to one couple who sat with a loaded
removal van outside their new home waiting for funds to be released.

 

Another couple who were locked out of their wedding savings were forced to
grovel to their DJ and wedding car provider because they were unable to pay
them as the big day approached.

 

Businesses were also left in difficulty. Lee MacDonald, who played Zammo in
children's TV show Grange Hill in the 1980s, told BBC Radio 5 live that he
was "having an absolute nightmare" in his locksmith business.

 

Shortly after the issues emerged, Mr Pester admitted to the BBC that the
bank was "on our knees".

 

The problems continued for many weeks and TSB came under fierce criticism
for the IT failings. Mr Pester was directly, and unusually, criticised by
MPs for the saga.

 

The FCA said while data itself was transferred successfully, the IT platform
"immediately experienced technical failures".

 

"This resulted in significant disruption to the continuity of TSB's banking
services, including branch, telephone, online and mobile banking," it said.

 

Mr Steward added: "The firm failed to plan for the IT migration properly,
the governance of the project was insufficiently robust and the firm failed
to take reasonable care to organise and control its affairs responsibly and
effectively, with adequate risk management systems."

 

TSB was fined a total of £48.65m - made up of a £29.75m penalty from the FCA
and a fine of £18.9m from the Prudential Regulation Authority (PRA).

 

"The disruption to continuity of service experienced by TSB during its IT
migration fell below the standard we expect banks to meet," said Sam Woods,
the PRA's chief executive.

 

In February 2019, TSB said that the disastrous IT upgrade had cost it £330m,
and about 80,000 customers had switched their account away from the bank in
2018.

 

The complexity of the switchover and the problems it caused has meant a long
investigation and eventual fine by the regulator. In the meantime, there has
been significant reputational damage for the bank.-BBC

 

 

 

Low-deposit mortgage scheme extended for a year

A mortgage guarantee scheme to help people get on the property ladder is to
be extended by a year.

 

The government said the programme, which was due to close at the end of
December, would help buyers "navigate difficult times".

 

It was originally designed to encourage lenders to give home loans to people
offering a 5% deposit - a product that was far less available during Covid.

 

Some lenders still play it safe as buyers face the rising cost of living.

 

Chief Secretary to the Treasury John Glen said: "For hard-working families
facing today's challenging economic conditions, it is right that we continue
to help them secure their first home or move into their dream house.

 

"Extending this scheme means thousands more have the chance to benefit, and
supports the market as we navigate through these difficult times."

 

The mortgage scheme has a £600,000 limit, and is primarily used to help
first-time buyers.

 

These 95% loan-to-value mortgages are often seen as riskier by banks as they
are more vulnerable to falling property prices, when there is a risk that
people hold more debt than their home is worth.

 

Under the scheme, the government takes on some of the risk and compensates
the lender for some of the loan if the property is repossessed.

 

It began in April last year, and the government said it had helped more than
24,000 households.

 

Some brokers have suggested the scheme had done its job by bringing more
low-deposit mortgages onto the market, but others suggested only a small
number of lenders had used the scheme.

 

Many mortgage providers generally only lend to those with a regular income,
irrespective of any government incentive, and still carry out affordability
checks.

 

Unemployment levels are expected to rise and the UK housing market is
expected to slow.

 

A recent survey by the Building Societies Association, suggested that 14% of
people thought now was a good time to buy a property, but 47% did not think
now was a good time to purchase a home.-BBC

 

 

South Africa: Load Shedding Downgraded to Stage 4

Eskom has downgraded load shedding to Stage 4 this morning (Wednesday) after
Stage 6 load shedding was implemented on Tuesday evening.

 

Stage 4 load shedding is expected to continue until further notice.

 

"[Stage 6 was] necessary to ensure sufficient generation capacity is
available tonight to replenish the dam levels at the pumped storage power
station so that this capacity will be available during the day [on
Wednesday].

 

"The breakdown of six generating units during the day has necessitated the
escalation in the load shedding stage," Eskom said on Tuesday.

 

Meanwhile, the state owned power utility says electricity supply has been
restored to Hendrina and surrounding areas in Mpumalanga.

 

This after four voltage lines were submerged and tripped when a dam on the
Optimum Mine overflowed.

 

In the Western Cape, the power utility has urged customers in Onsrusrivier
and Vermont to switch off stoves, geysers, pool pumps and electrical
appliances during load shedding in order to avoid inrush current when supply
is restored after the rotation power cuts.

 

"Once the electricity has been restored, customers should wait at least 30
minutes before switching on stoves, geysers and pool pumps to avoid possible
tripping of electricity.

 

"Cold load pickup takes place when a distribution circuit is re-energised
following an extended outage where the current is high enough to cause a
rapid overcurrent [or load surge] that may cause the electricity supply to
trip," Eskom said.

 

-SAnews.gov.za.

 

 

 

Nigeria: 2023 - Transport Unions to Lift Over 1m Personnel, 100,000
Vehicles, 4,200 Boats for INEC

The Independent National Electoral Commission, INEC, has signed a revised
Memorandum of Understanding, MoU, with road transport and marine workers'
union to help lift over a million personnel, 100,000 vehicles and about
4,200 boats deployed for the 2023 general elections.

 

INEC Chairman, Prof. Mahmood Yakubu disclosed this, yesterday, in Abuja
during the signing of the MoU.

 

The unions in the arrangement are the National Union of Road Transport
Workers NURTW, National Association of Road Transport Owners, NARTO and the
Maritime Workers Union of Nigeria, MWUN.

 

Speaking at the event, Yakubu said: "On December 12, 2018, we signed an MoU
with two transport unions, NURTW and NARTO. The MoU was based on the
realisation of the critical role of transportation in the conduct of
elections in Nigeria. The MoU was designed to facilitate the successful
deployment of personnel and materials for the 2019 general election and
other elections. Following these elections, we undertook a comprehensive
review to learn critical lessons in planning for the 2023 general election
and beyond.

 

 

"The signing of a revised MoU with the road and marine transport unions
today is a demonstration of our determination to implement key
recommendations of the review exercise in order to enhance forward and
reverse logistics in our electoral operations.

 

"The 2023 general election will involve the nationwide deployment of over
one million personnel and massive quantities of materials twice within a
period of two weeks from our state offices to 774 local government areas,
8,809 electoral Wards and 176,846 polling units across the length and
breadth of our country. It will require over 100,000 vehicles and about
4,200 boats that will be accompanied by naval gunboats.

 

"This is a huge undertaking that must be accomplished in the next 66 days
and we are resolute in doing so to give Nigerians a pleasant voting
experience. Let me assure Nigerians that we are determined that all polling
units nationwide will open at 8.30am on Saturday, 25th February 2023 for the
Presidential and National Assembly elections and on Saturday, 11th March
2023 for the Governorship and State House of Assembly elections," he added.

 

-Vanguard.

 

 

Nigeria: Inflation - Expert Advises Against Continued Monetary Policy
Tightening

The Central Bank of Nigeria (CBN) has been advised to withdraw from further
deployment of monetary policy tightening as a tool to check the inflationary
pressure.

 

Mr. Muda Yusuf, Managing Director, Centre for the Promotion of Private
Enterprise (CPPE) made the call in response to the November 2022 inflation
figure released by the National Bureau of Statistics (NBS) last Thursday,
which showed that the headline inflation accelerated to 21.47 percent in
November as against 21.09 percent in October, while the food inflation rose
to 24.13 percent from 23.72 percent in October.

 

He observed that the Nigerian economy is not credit-driven, arguing that it
accounts for the reason the tightening outcomes has been inconsequential as
a tool to tame inflation.

 

 

He stated: "As at October, 2022, credit to the private sector as a
percentage of GDP was 22.7 percent in Nigeria. The percentages for other
countries in 2020 according to the World Bank were 32 percent in Kenya; 96
percent in Morocco; 193 percent in Japan; 143 percent in the UK; 216 percent
in the United States; and 39 percent was the average for sub-Saharan Africa.
This underscores the need for variabilities in policy responses. Inflation
has been spiking despite the serial monetary tightening."

 

He argued that sustained tightening penalizes entrepreneurs (especially the
real sector), and increases the cost of credit with heightened prospects of
a backlash on growth. "Inflation restraining strategies should accordingly
focus on productivity boosting supply side factors and reduction in ways and
means funding of deficit," he said.

 

-Vanguard.

 

 

 

Nigeria Ranks Among Countries With Least Internet Censorship

A new study by a data collection company, Proxyrack has revealed that
Nigeria is one of the countries with the least internet censorship in the
world.

 

Internet censorship is the legal control or suppression of what can be
accessed, published, or viewed on the Internet.

 

>From the survey, out of the 20 countries profiled in terms of Internet
freedom scores, Nigeria ranked 57 over 100, while countries like the United
Kingdom, Japan, Germany and France ranked 79, 77 and 76 respectively.

 

This ranking is coming as Internet freedom is fast becoming an increasingly
important issue, with some governments around the world seeking to limit
their citizen's digital rights, restrict access to or censor information, or
even prevent reliable internet access altogether.

 

 

Internet freedom is also on the decline globally, with some activists taking
advantage of residential proxies and VPNs to speak out against corrupt
regimes and create a fairer society.

 

Meanwhile, in terms of the number of citizens online per 100, 000, Nigeria
has 49,968 with United Kingdom, Japan, Germany and France have 99, 231;
95,440; 93,583 and 94,265 respectively.

 

The United Kingdom believes that the freedom to access the internet is the
most fundamental right when it comes to internet freedom, and the UK has the
highest proportion of internet users. Nearly all of the adult population
accessed the internet in some form recently.

 

Despite the large proportion of internet users in Japan, the country spends
the least time on social media and on the internet overall, compared to
other countries.

 

Internet access is a key aspect of internet freedom, as some governments
chose to silence opposing voices by limiting the internet infrastructure of
certain areas. This is not the case in France however, as it takes third
place for this factor, with just over 94,000 people per 100,000 being
regular internet users.

 

Internet censorship is the restriction of certain aspects of online media,
such as social media, political propaganda among others.

 

-Vanguard.

 

 

 

Nigeria: At 16.67%, Foreign Portfolio Investments in Stock Market Hits Over
9-Year Low

Amid 2023 political uncertainty and scarcity of foreign exchange, foreign
portfolio investments in the Nigerian stock market dropped to 16.67 per cent
in 11 months of 2022, the lowest level in over 9 years.

 

This is in contrast to 22.93 per cent foreign portfolio investments in 11
months of 2021.

 

THISDAY investigation revealed that foreign portfolio investment in 11
months of 2013 stood at 46.59 per cent and it increased to 80.92 per cent in
11 months of 2014.

 

The Nigerian Exchange Limited (NGX) domestic & foreign portfolio
participation in equity trading report showed that foreign portfolio
investments in 11 months of 2015 stood at 56.81 per cent, while in 11 months
of 2016 it was at 44.86 per cent.

 

 

Further breakdown revealed that foreign portfolio participation in the stock
market trading was at 48.55 per cent in 11 months of 2017; 50.87 per cent in
2018; 48.85 per cent in 2019 and 34.72 per cent in 2020.

 

The stock market in 2022 has witnessed mixed performance amid a hike in the
inflation rate and Monetary Policy Rate (MPR) by the Central Bank of Nigeria
(CBN).

 

In a desperate attempt to tame the growing inflation rate, the CBN had
raised the MPR to 16.5 per cent from 11 per cent, and the world economy,
according to the World Bank may be edging towards a global recession and a
string of financial crises in emerging market and developing economies in
2023.

 

On the backdrop of impressive corporate earnings by some key companies and
low yield in the fixed-income market, among other factors, the stock market
segment of the NGX has gained per cent in 11 months of 11.57 per cent in 11
months of 2022 and highly dominated by domestic investors that comprises of
retail domestic/ institutional investors.

 

 

Capital market analysts have expressed that the MPR increase, uncertainty
towards the 2023 political elections, inflation rate and most especially the
scarcity of foreign exchange have contributed to foreign investors' exit.

 

Findings by THISDAY revealed that Naira at the Investors & Exporters (I & E)
Foreign Exchange Market depreciated to N 451.50/ Dollar as of December 19,
2022, from N412.99/ Dollar it closed in 2021.

 

CEO Wyoming Capital and Partners, Mr Tajudeen Olayinka attributed the drop
to foreign exchange challenges.

 

According to him, "The only explanation for that is the disappointing
exchange rate misalignment in Nigeria and the need to limit possible
exposure to foreign exchange risk."

 

 

He noted that solution to the problem lies in unifying the exchange rate
regime and allowing foreign exchange market to function.

 

The Chief operating officer of InvestData Consulting Limited, Mr. Ambrose
Omordion also highlighted that foreign exchange market challenges, 2023
election fear and rising interest rates weaken foreign portfolio investments
in Nigerian stock market.

 

Speaking with THISDAY, the Vice President of Highcap Securities, Mr. David
Adnori attributed the foreign investors' decline in the stock market to
foreign exchange scarcity, stating that domestic investors have increased
their holding in some listed fundamental stocks on the Exchange.

 

According to him, "Foreign investors are not investing again in Nigeria's
stock market, leading domestic investors to dominate the market. The decline
in foreign investors' confidence in the economy of Nigeria is also another
key issue.

 

"If you consider the debt area, a lot of foreign investors usually invest in
Nigeria's public debt. As it is now, a lot of them have stayed away over
looming fear that the government may not be able to service those debts."

 

He noted that foreign investors are critical in the global stock market.

 

He explained, "With more foreign investors, you will have more foreign
currencies in an economy. What is happening now is that our macro economy
has been mismanaged by the debt crisis. The federal government needs new
debts to service existing debts. It is a worrisome situation for foreign
investors and it is contributing to their exit from the stock market."

 

The MD, Head of Strategy at EFG Hermes Research, Mr. Simon Kitchen recently
disclosed that foreign investors are finding it hard to get their foreign
exchange out of both frontier markets.

 

Speaking at a virtual event, he noted that, "In Nigeria, foreign exchange is
a long-standing problem. Foreign Exchange has been scarce since 2020 and
foreigners are just impossible to take money out of the Nigerian economy if
they sell stocks. In Kenya, it has become a problem.

 

"Nigeria and Kenya together make up more than 10per cent of that frontier
market index and that means that the $150 million that came in the past
three weeks, $15 million should have gone into Nigeria and Kenya markets.

 

"What it means is foreigners just aren't putting that money in and so I
think, from a foreign investor point of view, it is absolutely critical that
authorities in these two countries fix the FX situation."

 

He expressed optimism about Nigeria's foreign exchange market in 2023 amid
the change in political leadership with the forthcoming general elections.

 

He stated that, "The change in leadership could create an opportunity for
the new government to draw a line under the years of orthodox policies and
take the right decision in fixing the foreign exchange crisis and fix
finances on a sustainable growth."

 

He noted that once foreign exchange challenges are tackled, Nigeria would
witness an inflow of foreign funds.

 

On how to drive stock market growth, he urged pension funds in Nigeria and
Kenya to invest more money in stocks, calling on regulators to change
incentives.

 

However, the NGX in a report last month disclosed that, "As at 30 November
2022, total transactions at the nation's bourse decreased by 5.19per cent
from N110.09billion or about $248.50million in October 2022 to
N104.38billion or about $234.88million in November6 2022.

 

"The performance of the current month when compared to the performance in
November 2021 (N196.14billion) revealed that total transactions decreased by
46.78per cent. In November 2022, the total value of transactions executed by
Domestic Investors outperformed transactions executed by Foreign Investors
by circa 72per cent.

 

"A further analysis of the total transactions executed between the current
and prior month (October 2022) revealed that total domestic transactions
increased significantly by 10.31per cent from N81.54billion in October to
N89.95billion in November 2022.

 

"However, total foreign transactions decreased by 49.46per cent from
N28.55billion or about $64.45million) to N14.43billion or about
$32.47million between October 2022 and November 2022."

 

The report added that over a 15-year period, domestic transactions decreased
by 58.80 per cent from N3.556 trillion in 2007 to N1.465trillion in 2021
whilst foreign transactions also decreased by 29.38per cent from
N616billionn to N435billionn over the same period.

 

"Total domestic transactions accounted for about 77per cent of the total
transactions carried out in 2021, whilst foreign transactions accounted for
about 23per cent of the total transactions in the same period.

 

"The transaction data for 2022 shows that total domestic transactions are
circa N1.820trillion, whilst total foreign transactions are circa N364.02
billion, "it stated.-This Day.

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

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Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2022

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

National Unity Day

 

December 22

 


 

Christmas Day

 

December 25

 


 

Boxing Day

 

December 26

 


Companies under Cautionary

 

 

 


CBZH

Meikles

Fidelity

 


TSL

FMHL

Turnall

 


GBH

ZBFH

GetBucks

 


Zeco

Lafarge

Zimre

 


 

 

 

 


 <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) 2022 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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