Major International Business Headlines Brief::: 02 February 2022

[Bulls n Bears]

 <https://bullszimbabwe.com/> 

 


 

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments
<https://bullszimbabwe.com/category/blogs/bullish-thoughts/> Bullish
Thoughts        <http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

 


 

 


Major International Business Headlines Brief::: 02 February 2022 

 


 

 


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

 


 

 


ü  India says it will launch digital rupee as soon as this year

ü  Native American tribes reach major opioid settlement

ü  Amazon announces 1,500 new apprenticeships for 2022

ü  Facebook-funded cryptocurrency Diem winds down

ü  Fraud: MPs seek overhaul to tackle financial scammers

ü  'Spider-Man' propels Sony to forecast-smashing Q3 profit

ü  How to invest for inflationary times

ü  Self-driving car companies zoom ahead, leaving U.S. regulators behind

ü  Panasonic's Q3 profit tumbles 44% as sales of white goods, home
appliances fall

ü  Investors urge miners to change ways after damning Rio Tinto workplace
report

ü  Novartis Q4 core operating income gains 9%

ü  U.S. airline group warns 5G interference issues could linger for years

ü  Japan's SMFG reports flat profit, Mizuho's earnings dip

ü  Tanzania: Demo-Farm Established to Improve Sunflower Production

ü  Tanzania: Dar, Cairo Agree to Boost Investments in Key Sectors

ü  Nigeria: Moody's Forecasts Phased Fuel Subsidy Removal Will Pose
Challenge to Incoming Govt

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

India says it will launch digital rupee as soon as this year

India's finance minister has said the country will launch a digital version
of the rupee as early as this year.

 

In her annual budget speech, Nirmala Sitharaman also outlined plans for a
30% tax on income from digital assets.

 

It would put profits from trading or transferring cryptocurrencies and
non-fungible tokens in the country's highest tax band.

 

India is the latest major economy to announce an official virtual currency,
as China trials the digital yuan.

 

"Introduction of a central bank digital currency will give a boost, a big
boost to (the) digital economy," Ms Sitharaman said on Tuesday.

 

"Digital currency will also lead to a more efficient and cheaper currency
management system," she added.

 

Ms Sitharaman also said the magnitude and frequency of digital asset
transactions "have made it imperative to provide for a specific tax regime",
where profits from transactions are taxed.

 

The tax would also apply to gifts of digital assets, with recipients being
liable to pay the levy. Taxes for all other transactions would be deducted
at source.

 

The announcement came as Ms Sitharaman unveiled the Indian federal
government's annual budget.

 

It included ramping up spending on infrastructure and extended credit
guarantees to struggling small businesses.

 

Asia's third largest economy has been hit hard by the pandemic with major
job losses and rising inflation.

 

The announcement that India's central bank would introduce a digital
currency comes against the backdrop of the country's demonetisation policy.

 

In 2016, Prime Minister Narendra Modi gave just four hours' notice before
500 rupee (£4.94) and 1,000 rupee banknotes were withdrawn from the
financial system.

 

Meanwhile, China has been trialling the digital yuan ahead of this month's
winter Olympics and has banned cryptocurrency trading and mining.

 

In the UK, The Bank of England and the Treasury are exploring a potential
central bank digital currency.

 

India's plan to introduce a digital rupee was welcomed by cryptocurrency
traders.

 

Sumit Gupta, co-founder and chief executive of India-based cryptocurrency
exchange CoinDCX, told the BBC that the initiative "has given legitimacy to
virtual digital assets".

 

Mr Gupta also said that he thinks taxing digital assets would be good for
the market but believes the rate is too high.

 

"A tax rate of 30% is on par with that imposed on gains from speculative
activities like lottery, gambling and other gaming activities. That proposed
30% might act as a dampener for greater adoption," he said.-BBC

 

 

 

Native American tribes reach major opioid settlement

Native American tribes have agreed a landmark settlement with major drug
companies over the devastation caused by opioid addiction.

 

The tentative deal - with Johnson & Johnson and three major drug
distributers - is worth $590m (£436m).

 

The companies had been accused of "knowingly pushing addictive drugs into
vulnerable communities".

 

A statement from Johnson & Johnson said it admitted no wrongdoing in the
settlement.

 

The company said its actions promoting their pain medications was
"appropriate and responsible".

 

Distributors McKesson Corp, AmerisourceBergen Corp and Cardinal Health Inc,
also agreed the terms on Tuesday.

 

Payouts from the settlement will be available to the 574
federally-recognised tribes, including those who did not take part in the
claims.

 

A total of $440m will be paid over the next seven years, on top of the $75m
already promised to the Cherokee Nation.AmerisourceBergen said the deal
would "expedite the flow of resources to communities impacted by the
crisis".

 

Native Americans have "suffered some of the worst consequences of the opioid
epidemic of any population in the United States," according to the court
papers from the Tribal Leadership Committee.

 

"The burden of paying these increased costs has diverted scarce funds from
other needs and has imposed severe financial burdens on the tribal
plaintiffs," it said.-BBC

 

 

 

Amazon announces 1,500 new apprenticeships for 2022

Tech giant Amazon has announced 1,500 new apprenticeships across the UK.

 

The 40 schemes range from engineering to health and safety and includes more
than 200 apprenticeships which are degree level.

 

Amazon employs more than 70,000 staff in the UK and said the scheme would
help more people get the skills in demand in the job market.

 

BT Group recently announced plans to recruit more than 600 apprentices and
graduates for September 2022.

 

The group, one of the UK's largest private sector apprenticeship employers,
said it would recruit for posts in its engineering, customer service,
applied research, and cyber-security areas.

 

The latest recruitment drive for both companies comes as firms in the UK and
the US report growing problems filling skilled roles. Amazon has also
previously offered a signing-on bonus of £1,000 to fill some roles.

 

Amazon's apprenticeships programme covers a wide range of areas including
publishing, retailing, marketing, and a programme focused on environmental,
social and corporate governance.

 

The firm's UK country manager John Boumphrey, said Amazon was "proud" to
have created the 1,500 apprenticeships which would "help even more people
get the skills that are in demand in today's labour market."

 

He added: "We want to be the employer that helps people take their careers
to the next level, whether you're just starting your first job or making a
career change, in every community that we serve across the UK."

 

Business Secretary Kwasi Kwarteng, said the announcement is "testament to
the strength of the British economy, with GDP back at pre-pandemic levels,
employee numbers at record highs and unemployment falling".

 

He added: "With the vast majority of Amazon's workforce located outside of
London and the South East, these additional 25,000 jobs highlight the
success of our Plan for Jobs in helping to ensure greater opportunities
across the country."

 

'Source of talent'

Stephen Isherwood, chief executive of the Institute of Student Employers,
told the BBC the move "reflects what we hear from many employers, that
apprentice training routes deliver an increasingly important source of
talent."

 

However, Mr Isherwood said the government needed to make "significant
improvements" to the "patchy careers provision in schools so that students
and their parents are more aware of the alternatives to university".

 

Julian David, chief executive of industry group techUK said that increasing
numbers of its members were now offering apprenticeships, but added that the
plans the government had set out so far were "still leaving people behind as
technology innovation is accelerating faster than the pipeline of people
available to fill the gaps".

 

The BBC has contacted the Department for Education for a response.

 

"While the pandemic and remote working have unfortunately slowed down
apprenticeship adoption for some companies, it is clear that the sector is
aware alternative routes to careers are an answer to today's digital skills
crisis," Mr David added.

 

For employers who hire apprentices under 20 years old, Mr Isherwood said
firms need to increase the "financial incentive to recruit".

 

Another option, he said, would be for the government to allow employers
"greater flexibility in how they spend their levy pot."

 

Last year, business group the Chartered Institute of Personnel and
Development said that UK employers had lost £2bn over the previous two years
in apprenticeship levy funds that they were unable to spend.

 

Last September, Amazon announced it was looking to hire 55,000 staff
globally for corporate jobs and roles in robotics, research and engineering.

 

About 40,000 jobs will be in the US, with 2,500 in the UK and the remainder
mostly in India, Germany and Japan.-BBC

 

 

 

Facebook-funded cryptocurrency Diem winds down

Meta's experiment with cryptocurrency, Diem, is shutting down.

 

The Diem Association, which runs the project, announced the sale of assets
of the cryptocurrency venture to Slivergate Capital Corporation for
$182million.

 

Launched as Libra in 2019, the project quickly ran into opposition from
policy-makers.

 

The association said it became clear from "dialogue with federal regulators"
that the project could not move ahead.

 

"As a result, the best path forward was to sell the Diem Group's assets, as
we have done today to Silvergate," Diem chief executive Stuart Levey wrote.

 

The Diem Association is a separate organisation from Facebook, although its
funding came from the firm.

 

Facebook intended Diem to be a stablecoin which, as the name implies, is a
type of cryptocurrency designed to be less of a financial rollercoaster, its
value linked to less volatile assets such as national currencies or
commodities.

 

But that did not stop the venture causing concern.

 

"This is an alternative money," Prof Ross Buckley at the University of New
South Wales told the BBC in 2019, warning that it was unlikely to get the
kind of easy treatment from regulators that an in-game currency might,

 

In a research paper, Prof Buckley and colleagues argued the currency was
"the ultimate example of something that is highly likely to move from 'too
small to care' to 'too big to fail' in a very short period of time".

 

Regulators and politicians did indeed put Diem under the microscope.

 

Facebook's former crypto head and Diem co-creator David Marcus said on
Twitter the idea might fare better with a more "acceptable" promoter.

 

 

The Financial Times wrote that "regulator hostility put a stop to the Diem
experiment".

 

Facebook's size, the newspaper argued, meant that Diem was a "challenge to
the status quo" and it was surprising the firm had not foreseen the problems
ahead.

 

But for Diem's Stuart Levey, the technology it developed addressed many key
concerns that have emerged as cryptocurrencies have taken off: "One of our
highest priorities in designing the Diem Payment Network was building in
controls to protect it against misuse by illicit actors.

 

"Among these controls was a prohibition on anonymous transactions, which
pose both a sanctions and money-laundering risk".

 

Mr Levey added: "We look forward to seeing the design choices - and the
ideals - of Diem thrive."

 

Stephane Kasriel, head of Novi - Meta's digital wallet project - tweeted
that the company "would continue to execute on our existing fintech plans to
create economic opportunities and champion greater financial inclusion
today, and as we look ahead to the metaverse".-BBC

 

 

 

Fraud: MPs seek overhaul to tackle financial scammers

The strategy to tackle fraud and other economic crime should be overhauled
to prevent scammers acting with "impunity", according to MPs.

 

Ministers should consider creating a new government department and a new law
enforcement agency to get to grips with the issue, the Treasury Committee
said.

 

The committee called for mandatory refunds in push-payment fraud cases.

 

This is when victims transfer money to fraudsters, thinking they are from
official organisations.

 

Among a string of recommendations, MPs also said the government should
consider whether to make big technology companies liable to pay compensation
when people are tricked by con-artists using their platforms. Ministers
should also legislate against online fraud adverts, they said.

 

"For too long, pernicious scammers have acted with impunity, ripping off
innocent consumers with fraudulent online adverts, impersonation scams and
dodgy crypto investments," said Mel Stride, who chairs the committee.

 

 

"Unfortunately, fraud has soared during the pandemic and, as MPs, we've
heard heart-breaking stories of individuals who have fallen victim to these
criminals and lost large sums of money.

 

"While the government have made some progress in this area, we're today
calling on them to push harder and act faster on the growing fraud
epidemic."

 

The committee said there was a "bewildering" number of agencies responsible
for fighting economic crime and fraud.

 

"The government must consider why economic crime seems not to be a priority
for law enforcement, and how it can ensure it becomes one," its report said.

 

After having £25,000 stolen by fraudsters when she was recovering from a
stroke, 74-year-old Janet from Essex was told the police would not
investigate her case.

 

"It just seems like you're put in a heap, you're just one of a number," she
told BBC Radio 4's Money Box programme last month.

 

"I had sleepless nights thinking about it. It was always on my mind."

 

More than £4m on average is stolen by fraudsters every day in the UK.

 

In total, £754m was stolen through fraud in the first half of last year, an
increase of 30% compared with the same period last year, figures from
banking trade body UK Finance show.

 

Among a string of other reforms suggested by the Treasury Committee are
longer term proposals to tackle financial crime and the emerging issues over
cryptoassets.

 

It called for an overhaul of Companies House - where directors register
companies - and to increase the cost to register a business from £12 or £13
currently to £100 in an attempt to deter criminals from setting up hundreds
of shell firms.

 

On crypto, it welcomed government plans to legislate to bring advertising of
cryptoassets into line with that of other financial services and products,
but said there should be "proper consumer protection regulation across the
whole cryptoasset industry".-BBC

 

 

 

'Spider-Man' propels Sony to forecast-smashing Q3 profit

(Reuters) - Japan's Sony Group Corp (6758.T) posted on Wednesday a 32% jump
in third-quarter operating profit that smashed analysts' estimates, as
earnings at its pictures unit surged on the back of the success of
"Spider-Man: No Way Home".

 

Operating profit was 465.2 billion yen ($4.05 billion) for the three months
to Dec. 31. That compared with an estimated average profit of 351.6 billion
yen from nine analysts surveyed by Refinitiv.

 

Sony hiked its full-year profit forecast to 1.2 trillion yen from 1.04
trillion yen. That prediction is higher than an average 1.09 trillion yen
profit forecast from 24 analysts, Refinitiv data showed.

 

The conglomerate - spanning areas such as entertainment, sensors and
financial services - switched to IFRS accounting standards from U.S. GAAP in
the current financial year.

 

Profit at its pictures business jumped by more than seven-fold to 149.4
billion yen, as revenue more than doubled.

 

Sales at the group's pictures unit were also boosted by receipts from the
"Venom: Let There Be Carnage" movie and licensing of the "Seinfeld" sitcom.

 

The sale of mobile gaming business GSN Games also boosted Sony's profit.

 

Sony is benefiting from strong demand for its PlayStation 5 (PS5) games
console which it launched in November 2020. A shortage of semiconductors,
however, means it is struggling to produce enough consoles to meet that
demand.

 

Sony said it sold 3.9 million PS5 units in the third quarter, which spans
the key year-end shopping season, bringing told units sold to 17.3 million.

 

The group said last year it will spend 2 trillion yen over three years on
strategic investments, including a push to expand subscribers to its gaming
and entertainment services as it streamlines its consumer electronics
business.

 

On Tuesday, the company announced it will buy Bungie Inc, the original
creator of the "Halo" videogame, for $3.6 billion. That comes after XBox
console maker Microsoft Corp (MSFT.O) said last month it will purchase "Call
of Duty" maker Activision Blizzard (ATVI.O) for $69 billion.

 

The Japanese consumer tech company may also branch out into electric
vehicles (EVs), with Chief Executive Kenichiro Yoshida unveiling a new EV
prototype and announcing the creation of a mobility business at a tech trade
show in Las Vegas last month.

 

Growing demand for EVs is spurring new entrants into auto markets. Through
EVs, Sony is aiming to build a business that will transform cars from
transportation machines to entertainment spaces.

 

Sony has said it will pick new partners for its EV project based on the
technology they can bring. read more

 

In November chipmaker Taiwan Semiconductor Manufacturing Co (TSMC) said it
had agreed to build a $7 billion chip plant in Japan that will supply Sony
with semiconductors for its image sensor business from 2024.

 

Sony shares closed up 4.9% on Wednesday ahead of the earnings and have
fallen 7.4% year-to-date.

 

($1 = 114.7300 yen)

 

The Thomson Reuters Trust Principles.

 

 

 

How to invest for inflationary times

(Reuters) - Low inflation had spoiled U.S. investors for so long that last
year's sudden surge came as a shock.

 

As those who lived through the late 1970s and early 1980s can attest,
inflation can be a "portfolio killer" because it erodes purchasing power.

 

Inflation revved up to 7% in December compared to the year prior, the
highest level in decades.

 

Even at 3% annual inflation, in 20 years you would need $181 to match what
$100 buys today, according to the calculator at fintech site SmartAsset.

 

How does that change the money or asset mix you need for retirement?

 

"Many investors have never experienced inflation like we have seen the last
few months, so it may be a good time to revisit your portfolio and confirm
whether you still feel confident," said Naveen Malwal, an institutional
portfolio manager at Boston-based financial giant Fidelity Investments.

 

After all, some asset classes tend to perform better during higher-inflation
periods. Among 15 major asset classes in inflationary periods since 2000,
the top performers included oil (41% return), followed by emerging markets
stocks (18%), gold (16%), and cyclical stocks (16%), according to a Wells
Fargo study.

 

On the flip side were a couple of bond categories. Emerging markets fixed
income lagged with -8% return, while investment-grade fixed income returned
-5%.

 

Economists generally agree that inflation will back off from current
overheated levels. Over the next 10 years, they expect the Consumer Price
Index to average a modest 2.55% annually, according to the Survey of
Professional Forecasters from the Federal Reserve Bank of Philadelphia.

 

"Look at the things driving inflation: There is too much money chasing too
few goods," said Scott Wren, senior global market strategist for Wells Fargo
Investment Institute.

 

"There is money supply growth, there are transfer payments which increased
savings, there is supply chain disruption. By the end of the year, we should
see some easing, and all those things will help the inflation story."

 

Which investment areas should benefit from rising prices, and which will
not? Here is what the experts say:

 

ESCHEW CASH

 

During inflationary periods, the value of your cash holdings will erode over
time, perhaps substantially so.

 

"Investors are sitting on way more cash than they should," Wren said.

 

With indexes like the Nasdaq (.IXIC) touching correction territory, now may
be a good time to start putting that cash to use, and accumulate harder
assets that should hold up during periods of higher inflation.

 

TIPS ARE YOUR FRIENDS

 

Fixed income markets tend to get hit hard by inflation. A bond paying out a
rock-bottom yield for an extended period is a poor option when prices and
interest rates are rising.

 

One corner of the bond market has the answer: Treasury Inflation-Protected
Securities (TIPS), whose principal increases with inflation and throws off
interest twice a year at a fixed rate.

 

"That's one way to stay invested in the bond market, and they are literally
designed to provide you inflation protection," Malwal said.

 

LOOK AT HISTORY

 

Investing has no guarantees, but past performance during inflationary
periods can provide some clues.

 

"In higher-inflation environments, things like commodities do well," said
Wells Fargo's Wren. "So do mid-cap and small-cap stocks. The energy sector
typically does well, and equity REITs (real estate investment trusts). I
also think financials, industrials, and materials will all benefit."

 

DO NOT OVERREACT

 

Just because inflation is uncomfortably high, do not expect that to last
forever. Minor portfolio tweaks may be in order, but wholesale changes are
probably a mistake.

 

Forecasters see inflation drifting down over 2022 as supply chain problems
ease up, labor markets normalize, and COVID-related emergency cash infusions
recede.

 

"Most people agree we're headed lower. The question is how much lower and
how long will it take to get there,” said Fidelity's Malwal. "It could be
closer to 3-4% by the end of the year."

 

The Thomson Reuters Trust Principles.

 

 

Self-driving car companies zoom ahead, leaving U.S. regulators behind

(Reuters) - Self-driving vehicle companies from Tesla Inc (TSLA.O) to
General Motors Co's (GM.N) Cruise are racing to start making money with
their technology, outrunning efforts by regulators and Congress to write
rules of the road for robot-driven vehicles.

 

On Tuesday, Cruise said that SoftBank Group Corp (9984.T) will invest
another $1.35 billion in anticipation of Cruise launching commercial
robo-taxi operations. read more

 

Cruise needs one permit, from California's Public Utilities Commission, to
start charging for rides around San Francisco in vehicles with no human
driver.

 

Cruise, Tesla, Alphabet Inc's (GOOGL.O) Waymo and Aurora Innovation Inc
(AUR.O) are among many companies aiming to deploy fully autonomous vehicle
technology in the United States within the next two to three years, whether
or not federal regulators give them a clear legal framework for doing so.
Autonomous vehicle (AV) startups and automakers are under pressure to start
generating revenue from billions of dollars of engineering investment over
the past decade.

 

Proposed legislation to create a national framework of rules to govern
autonomous vehicles remains stalled in Congress, despite the industry's
lobbying. That has left autonomous vehicle companies free to deploy
robo-taxis or self-driving trucks in some states, such as Arizona and Texas,
but not in others. Waymo has provided thousands of rides in driverless
robo-taxis in Phoenix, though the service remains limited.

 

"Providing guard rails is helpful, at the federal level," said Chris Urmson,
chief executive of automated vehicle technology company Aurora Innovation.
"Today we have different regulations across the 50 states."

 

Aurora is testing its Aurora Driver in Class 8 trucks, but so far cannot
operate those trucks in California without human drivers. That cuts off a
potentially rich market for autonomous truck companies hauling loads from
Southern California to distribution hubs to the east.

 

"We look at the Port of Los Angeles ... and the supply-chain challenges we
see. There’s a real urgency for this technology" to address the shortage of
truck drivers, Urmson said to an audience at the Washington Auto Show last
month.

 

AV industry lobbyist Ariel Wolf told a U.S. House of Representatives panel
on Tuesday that autonomous trucks "will not lead to mass layoffs." Instead,
he said, autonomous trucks driving long-haul routes will allow human drivers
to "spend more nights in their own beds instead of in the sleeper berth of a
truck."

 

PROTECTING JOBS

 

Unions, however, urged Congress to be skeptical.

 

"We are at risk ... of losing hundreds of thousands of manufacturing and
frontline transportation jobs if Congress fails to act decisively and the AV
industry is left completely unregulated," Transport Workers Union president
John Samuelsen told the House panel Tuesday.

 

Unions and trial lawyers also want autonomous vehicle companies to disclose
more data about accidents and other aspects of their systems.

 

"All workers deserve to know that an autonomous vehicle or bot traveling
next to them is safe enough to share the same road or worksite," said
Teamsters official Doug Bloch.

 

In the absence of new laws tailored to automated vehicles, the National
Highway Traffic Safety Administration, which oversees vehicle safety in the
United States, has put forward voluntary guidelines and last year required
companies to report accidents involving automated driving systems.

 

But the agency has not issued comprehensive standards for robot-driven cars
or trucks. The U.S. Federal Aviation Administration has the power to review
new technology before it is used in aircraft. But motor vehicle
manufacturers are free to certify for themselves that a feature is safe. The
NHTSA steps in if new features turn out to be a safety hazard.

 

NHTSA officials have intensified scrutiny of Tesla's automated driving
systems over the past year. The agency on Tuesday said it had pressed Tesla
to change a feature of its Full Self Driving, or FSD, automated driving
system that allowed vehicles to keep moving through stop signs rather than
come to a complete halt. So-called rolling stops are illegal.

 

In December, NHTSA opened a review of a feature that allowed Tesla models to
play videos over dashboard screens, and last August opened a formal
investigation of the Autopilot driver assistance systems in 765,000 U.S.
vehicles after a series of incidents in which Teslas collided with emergency
vehicles.

 

Still, Tesla Chief Executive Elon Musk made no mention of regulatory
concerns during an investor call on Jan. 26 when he said the company could
soon use an over-the-air software download to enable its vehicles to drive
themselves and be used to offer autonomous ride services.

 

"I would be shocked if we do not achieve full self-driving safer than a
human this year," Musk said. When Tesla enables its vehicles to drive
autonomously via an over-the-air software download, Musk said, vehicle
owners could offer rides that would "cost less than the subsidized value of
a bus ticket."

 

One potential path for the industry and safety advocates involves voluntary
agreements on standards, said David Harkey, president of the Insurance
Institute for Highway Safety, a vehicle safety research organization backed
by the insurance industry. Harkey said the IIHS could be part of such an
effort.

 

"We have to get to the point where it's not the Wild West," he said.

 

The Thomson Reuters Trust Principles.

 

 

 

Panasonic's Q3 profit tumbles 44% as sales of white goods, home appliances
fall

(Reuters) - Japan's Panasonic Corp (6752.T) on Wednesday posted a 44%
decline in third-quarter operating profit to 73 billion yen ($636.2 million)
as sales of white goods and home appliances shrank in Japan and material
costs rose.

 

The result for the three months to Dec. 31 was worse than an estimated mean
106.9 billion yen profit from 10 analysts surveyed by Refinitiv.

 

Panasonic has shifted away from producing low-margin consumer electronics
and appliances to making auto batteries for Tesla Inc (TSLA.O), production
machinery, components and more recently providing supply chain management
services.

 

However those consumer appliances, which saw a boom in sales during
coronavirus lockdowns, still account for a big chunk of revenue.

 

Panasonic stuck with its full-year forecast for annual profit of 370 billion
yen - a figure in line with analysts' forecasts.

 

($1 = 114.7400 yen)

 

The Thomson Reuters Trust Principles.

 

 

 

Investors urge miners to change ways after damning Rio Tinto workplace
report

(Reuters) - Anglo-Australian miner Rio Tinto's (RIO.AX)(RIO.L) admissions of
sexual assault, racism and bullying in an internal report have sparked calls
from investors for the entire industry to clean up its act.

 

An 85-page report released by Rio on Tuesday that pointed to a culture where
harmful behaviours are often normalised and bullying is rife put a spotlight
on the broader industry, which has long been accused of tolerating
inappropriate behaviour.

 

Pension fund Health Employees Superannuation Trust Australia said it was
writing to mining companies to ask how they are addressing similar potential
issues. The fund said it would "seek to engage with senior management and
boards on how they are overseeing company culture" to ensure high standards.

 

Miners, who have struggled to attract female workers, even as they grapple
with a labour shortage, have been trying for several years to change a "boys
club" culture. Top global miner BHP Group (BHP.AX) has an "ambitious,
aspirational goal" of achieving gender balance globally by 2025.

 

Investors and industry players gave Rio Tinto credit for publishing the
damning findings from an external review but said others in the industry,
and beyond, needed to act as well.

 

"It shouldn't be left to Rio Tinto. This is an industry problem. It's a
society problem. It's no good them solving the problem on their side and it
continues elsewhere," Greg Busson, the Mining and Energy Union's Western
Australia state secretary, said.

 

Rio Tinto launched the review in March last year, not long after CEO Jakob
Stausholm took over the top job in the wake of a backlash over the company's
destruction of the 46,000-year-old Juukan Gorge rock shelters to expand an
iron ore mine.

 

Activist investor group Market Forces said Juukan Gorge highlighted a
culture of arrogance and other deep seated issues at Rio Tinto, which had
bubbled to the surface through this report.

 

"The findings of this report demonstrate the need for increased and strong
investor scrutiny of Rio Tinto and its governance practices," said Will Van
De Pol, asset management campaigner at Market Forces.

 

"Clearly there is a need to improve culturally at Rio Tinto and this is yet
another moment that needs to catalyse further change, and that would be
something that we would be really keen to see infiltrate throughout Rio
Tinto."

 

TOXIC CULTURE

 

Tuesday's report, which took nearly a year for an outside firm to complete
and involved feedback from nearly a quarter of Rio's 45,000 employees,
provides a detailed disclosure of toxic workplace practices.

 

One female worker described being asked to perform oral sex on a male
colleague. When the request was reported, a supervisor said he was sure the
man was joking and Rio would "make sure you're not alone with him."

 

Another worker said pejorative name-calling of people of colour is routine
and accepted as normal work site banter.

 

One female employee said she would not recommend Rio to her friends as a
place to work, a stinging indictment of a company that has said publicly for
years it aims to boost gender diversity. Women comprise 19% of Rio's
workforce.

 

"Other companies need to take this as a signal that the human element can't
be ignored," said Katie Mehnert of Ally Energy, a networking group
connecting workers with companies in the renewable energy industry.

 

"You can have the best assets on the planet, but if your culture is trash,
who will want to work for you?"

 

Rio CEO Stausholm, who commissioned the report, vowed to push for change.

 

"As CEO, I own the culture," Stausholm told Reuters. "Now I know what I
know, and I clearly have an obligation to address it."

 

Advocacy groups for women in mining and other extractive industries
cautiously welcomed the report, which tacitly acknowledges what many in the
mining industry have whispered about for years.

 

"We hope this example Rio Tinto is setting will foster dialogue and will
make other mining companies follow suit," said Barbara Dischinger, director
of London-based International Women in Mining, a nonprofit that promotes
gender equality in the mining industry.

 

BHP said it was committed to an inclusive and diverse workplace where people
were respected. Fortescue Metals Group (FMG.AX) CEO Elizabeth Gaines said
the miner had a "zero-tolerance approach" to harassment and bullying and all
complaints were taken seriously.

 

Miners often work long hours in harsh environments for weeks at a time,
living side by side in small camps with little privacy.

 

A Reuters reporter in 2018 witnessed miners, gathered for an industry
convention, dropping their pants to sing karaoke in their underwear.

 

The perception of mining as hostile to women and people of colour has only
exacerbated the industry's talent problem, with enrolment in mining
engineering programs plunging across the United States, Canada and
Australia.

 

Employees in Rio's report described immense stress and anxiety trying to
avoid sexual harassers, harming their concentration and productivity on the
job.

 

"It is clear there are significant challenges that need to be addressed both
at the company level and across the sector," said Louise Davidson, CEO of
Australian Council of Superannuation Investors, which represents 37 asset
owners and institutional investors which collectively own on average 10% of
every ASX200 company.

 

The Thomson Reuters Trust Principles.

 

 

 

Novartis Q4 core operating income gains 9%

(Reuters) - Novartis (NOVN.S) reported fourth-quarter core operating income
gained 9% as higher drug sales offset in increase in marketing and
development costs.

 

The Swiss pharma giant's quarterly core operating income came in at $3.8
billion, it said in a statement on Wednesday.

 

Shoring up group sales, revenues from arthritis and psoriasis drug Cosentyx
gained 13% to $1.24 billion, slightly below average analyst expectations of
$1.3 billion, based on Refinitiv data.

 

 

Revenues from heart failure treatment Entresto jumped 34% to $949 million,
broadly in line with the market consensus.

 

Novartis added it expected core operating income to grow in the
mid-single-digit percentage range this year.

 

The Thomson Reuters Trust Principles.

 

 

 

U.S. airline group warns 5G interference issues could linger for years

(Reuters) - It will likely take "years" to permanently address airplane
interference issues caused by the deployment of 5G wireless in the C-band, a
group representing major U.S. passenger and cargo carriers will tell U.S.
lawmakers on Thursday.

 

Nick Calio, who heads Airlines for America, will tell a House Transportation
and Infrastructure subcommittee in written testimony that the 5G issues
facing the aviation industry should have been avoided.

 

"The process that led to this operational nightmare should be held up as a
cautionary tale of government communication and coordination gone awry," his
testimony, reviewed by Reuters and not yet made public, says.

 

"It will likely take years, not days or weeks, to fully and permanently
mitigate the interference issues caused by deployment of 5G in the C-band,"
adds Calio, whose group represents American Airlines (AAL.O), United
Airlines , FedEx (FDX.N) and other major carriers.

 

Verizon and AT&T in January agreed to delay deploying some 5G wireless
towers near airports after the aviation industry and Federal Aviation
Administration (FAA) warned 5G interference can impact sensitive airplane
electronics like radio altimeters. read more

 

The FAA said last week it has cleared 20 altimeter models and approved 90%
of the U.S. commercial fleet for landing in low-visibility approaches in
areas with C-Band 5G. But 5G has impacted some flights in poor weather,
especially some regional jets. read more

 

Aerospace Industries Association President Eric Fanning will tell lawmakers
that progress is being made on the problem but it is not yet solved.

 

"With many outstanding questions still on the table, there are disruptions
in our future, even with further compromise and collaboration," his
testimony says.

 

The hearing will also feature testimony from FAA Administrator Steve
Dickson, wireless industry group CTIA CEO Meredith Attwell Baker and others.

 

A spokesman for the committee said the Federal Communications Commission
(FCC) was invited to testify but was unable to appear. The FCC did not
immediately comment.

 

Baker will tell lawmakers the wireless industry "remains confident that 5G
poses no risk to air traffic safety".

 

Air Line Pilots Association President Joe DePete says the FCC's support of
the telecom industry has "not only put the public at risk, but it has also
forced pilots to perform extensive workarounds to ensure the safety of
flight."

 

Cathryn Stephens, an airport official appearing on behalf of the American
Association of Airport Executives, will tell lawmakers that "pockets of pain
persist and it is clear that the reprieve may be temporary and dependent on
the willingness of the telecoms to operate in a limited fashion in some
areas."

 

The Thomson Reuters Trust Principles.

 

 

 

Japan's SMFG reports flat profit, Mizuho's earnings dip

(Reuters) - Sumitomo Mitsui Financial Group Inc (8316.T), Japan's
second-largest bank, on Wednesday reported a 3% increase in third-quarter
net profit, as it braces for risks associated with COVID-19's Omicron
variant outbreak.

 

SMFG posted a profit of 168.7 billion yen ($1.47 billion) in the
October-December period versus 163.8 billion yen a year earlier, according
to Reuters' calculations based on nine-month cumulative figures disclosed in
a stock exchange filing.

 

 

SMFG kept its full-year profit view through March at 670 billion yen, which
compared with the 714.8 billion yen average of 12 analyst estimates compiled
by Refinitiv.

 

Net profit at Mizuho Financial Group Inc (8411.T), the country's No. 3
lender, dropped 33% to 93.0 billion yen for the three months through
December.

 

Mizuho also maintained its full-year profit forecasts.

 

Top lender Mitsubishi UFJ Financial Group Inc (8306.T) will release its
third-quarter results later on Wednesday.

 

 

($1 = 114.7200 yen)

 

The Thomson Reuters Trust Principles.

 

 

 

Tanzania: Demo-Farm Established to Improve Sunflower Production

IN efforts to improve sunflower production in Dodoma, the government has
launched an ambitious national campaign to help improve sunflower farming in
the country by establishing a demo-farm in Chemba district, Dodoma region.

 

Under the programme, the district is expected to produce 100,000 tonnes of
sunflower in the 2022 season, as part of the effort to increase production
of the edible oil in the country.

 

Speaking on behalf of the Minister for Agriculture, Hussein Bashe, the
Director of Crop Development in the ministry, Nyasebwa Chimangu, said the
plan would help the ministry in capacity building for extension officers and
increase productivity.

He said the efforts were in line with President SamiaSuluhu Hassan's
directive that the ministry come up with strategies aimed at improving
agricultural production.

 

He added that the programme was equally aimed at empowering extension
officers who in turn would train farmers through expert guidance.

 

"This is part of the strategy to improve agriculture in rural areas with
focus on specific crops," he said, adding that the government had plans to
improve cotton and sunflower growing, among other crops.

 

The director noted that extension officers have to change their way of
operation and refrain from doing business as usual, since agricultural
services need modern technologies.

 

Chemba District Commissioner, Dr Hamisi Mkanachi on his part noted that the
authority has laid strategies to improve agricultural production and one of
them is to provide subsidized sunflower seeds that are affordable to the
farmers.

 

He said the government introduced the subsidized sunflower seeds in
2021,selling at 7,000/- per two-kilogram bag unlike in the previous
yearwhereby the same amount of seeds was sold at 40,0000/-.

 

"We have already received 11 tonnes of the improved subsidizedsunflower
seeds and have sold 4.7 tonnes and I call on farmers to buythe improved
seeds in order to increase production in the district," hesaid.

 

He noted that the district authority has distributed six kilograms ofseeds
to every extension officer in the district and set aside 60 hectares of land
to be used as demo-farms to train local farmers.

 

The government has taken various measures to improve sunflowerproduction,
such as an improved budget for the Agricultural Seeds Authority (ASA) to
10.8bn/-in the 2021/22 season from 5.42bn/-in 2020/21.-Daily News.

 

 

Tanzania: Dar, Cairo Agree to Boost Investments in Key Sectors

TANZANIA and Egypt have agreed to boost investment in agriculture,
transportation, energy, infrastructure, water and transportation.

 

Minister for Investment, Trade and Industry, Dr Ashatu Kijaji and Egyptian
Ambassador to Tanzania, Mr Mohamed Gaber Abulwafa met on Monday in Dar es
Salaam to discuss various investment opportunities available within the two
countries.

 

Dr Kijaji stated that the two nations' friendship and investment cooperation
has been reinforced during President Samia Suluhu Hassan's visit to Egypt on
November 10, 2021, where she met Egyptian President Abdel Fattah Al Sisi.

"There is every reason to continue the bilateral trade talks and conferences
to provide opportunities for traders to take advantage of investment
opportunities available in Egypt and Tanzania," she said, noting that trade
between the two countries has increased from 84.3bn/- in 2018 to 87.3bn/-in
2020.

 

Egypt has invested in 26 projects worth 3.1tri/- in Tanzania, according to
Ambassador Abulwafa, and has created 2,206 jobs for Tanzanians.

 

Ambassador Abulwafa stated that Egyptian businessmen were in Tanzania for a
Business Forum, where they were presented with numerous investment options
and are currently in the process of investing in Tanzania's agricultural and
livestock sectors, particularly cashew, avocado and maize.

 

He also stated that Egypt is planning to launch a marine transport between
Egypt and Tanzania in order to boost investment and trade, as well as
facilitate the transit of commodities between the two nations.

 

Dr Kijaji concluded that Egypt has been implementing a number of strategic
projects in Tanzania, including the Julius Nyerere Hydropower Project
(JNHPP-MW2115), which is expected to be completed in June 2022 and will
assist factories in producing reliably once the country's electricity crisis
is resolved.

 

During her visit to Egypt, President Samia invited Egyptian businesspersons
to invest in 10 key priority sectors in Tanzania, assuring them of her
government's full investment facilitation.

 

President Samia listed the sectors readily available for investments as
livestock, agriculture, real estate, industry, energy, tourism and
hospitality, pharmaceutical, transportation, mining, manufacturing and
agro-processing industries.

 

"My government will render all the necessary facilitation to the Egyptian
business community wishing to invest and do business in Tanzania," she said
during a press conference held at the Ettihadiya Palace in eastern
Cairo.-Daily News.

 

 

Nigeria: Moody's Forecasts Phased Fuel Subsidy Removal Will Pose Challenge
to Incoming Govt

One of the leading global ratings agencies, Moody's has predicted that the
phased removal of subsidy paid on petrol in Nigeria will pose challenge to
incoming government.

 

In its latest report on the recent issues surrounding fuel subsidy in
Nigeria, the company also noted that without reforms to significantly
increase its revenue, the Nigerian government's balance sheet would remain
exposed to further shocks.

 

Minister of State for Petroleum Resources, Timipre Sylva, had last week
denied insinuations that since the federal government backed down on its
plan to enforce price deregulation in the downstream sector, it might soon
embark on a gradual subsidy removal.

But stressing that the ability of the Nigerian government to increase
capital spending in a sustainable manner would be very challenging, Moody's
noted that the decision of the government to postpone removal of oil
subsidies was credit negative.

 

The firm projected, "Ending oil subsidies will remain challenging even after
a new president and a new administration are elected early next year. We
expect that subsidies will eventually cease, but their withdrawal will only
be implemented very gradually."

 

But it explained that the costly fuel subsidy had historically been a key
driver of Nigeria's significant fiscal deficits and accelerated
deterioration in its public finances.

 

In addition, the report stressed that the policy reversal also illustrated
Nigeria's weak institutions and limited capacity to implement challenging
reforms.

The elimination of petrol subsidy had been envisaged for more than a decade
by successive Nigerian administrations, but this time, to further guarantee
its implementation, the reform was put into the Petroleum Industry Act (PIA)
signed into law in August 2021.

 

Implementation of the PIA, which stipulates the removal of petrol subsidy,
was initially meant to commence in February 2022, but it was later shifted
to July 2022. However, due to pressure and threat of protest by the Nigeria
Labour Congress (NLC) and the Trade Union Congress (TUC), the removal of
subsidy was suspended for about 18 months, which means that the incoming
administration in 2023 would bear the burden.

 

According to Moody's, fuel subsidy generally weighs heavily on Nigeria's
public finances, especially when international oil prices are elevated, as
the Nigerian National Petroleum Company (NNPC) deducts total cost of subsidy
from oil profits before transferring them to the government's Federation
Account.

The ratings company stated, "We estimate the cost of oil subsidies - which
are in fact forgone revenue - at around N250 billion a month or N3 trillion
a year, equivalent to 1.6 per cent of Gross Domestic Product (GDP) and
almost 25 per cent of general government revenue in 2021.

 

"The cost is even more burdensome because, according to our estimates,
Nigeria's general government revenue was only 6.8 per cent of GDP in 2021,
one of the lowest among rated sovereigns for years.

 

"Although oil proceeds historically account for more than 50 per cent of
annual government revenue, the rising cost of oil subsidies increasingly
limits the recovery in government revenue when international oil prices
rebound. Forgoing revenue is detrimental to Nigeria's public finances and
fiscal consolidation efforts."

 

The report pointed out that between 2016 and 2021, general government fiscal
deficits averaged 5.1 per cent of GDP, which it said was very high compared
with the average government revenue of 6.9 per cent of GDP over the same
period.

 

It disclosed that consequently, general government debt rose to 31 per cent
of GDP in 2021, from 16.9 per cent in 2016, with the country's debt
affordability metrics also deteriorating significantly as interest payments
consumed a third of total revenue in 2021.

 

Moody's stated, "Since the re-election of President Muhammadu Buhari in
2019, the government has embarked on an ambitious plan to increase revenue
towards 15 per cent of GDP in the medium term.

 

"Although achieving its target was unlikely in our opinion, the removal of
the oil subsidies was a major component of the plan. Without reforms to
significantly increase its revenue, the government's balance sheet will
remain exposed to further shocks and the ability to increase capital
spending in a sustainable manner will be very challenging.

 

"The country's currently weak public finances limit the authorities' ability
to tackle its structural bottlenecks, which is crucial to ensure the
country's economic development. For example, poor infrastructure -
particularly for electricity and energy supply - has constrained
productivity."

 

In the opinion of the rating agency, although the removal of subsidy would
support government revenue, lack of subsidy would increase fuel prices and
lead to inflation. Furthermore, higher fuel prices would adversely affect
the most vulnerable section of the population, given that inflation was
around 15 per cent at the end of last year, it stated.

 

The company said, "In addition, removing the subsidies was a challenging
reform in the penultimate year of the current administration's term. To
counter its social impact, the government planned to give cash transfers of
N5, 000 to as many as 40 million people each month for six to 12 months,
beginning in July 2022."

 

But the report said the commissioning of the Dangote refinery, in 2023 would
help the gradual transition to phase out subsidy because the project would
drastically reduce the dollar-denominated demand to import refined petroleum
products.

 

In the last quarter of 2021, Moody's changed its outlook on Nigeria to
stable from negative and affirmed its long-term issuer and senior unsecured
ratings at B2. The firm also affirmed Nigeria's (P) B2 senior unsecured
medium-term note programme rating.

 

At the time, it said the change of outlook to stable reflected Moody's
expectation that higher oil prices and some measures taken by the government
will help stabilise the sovereign's credit metrics and support its external
position.

 

"The on-going improvements in the macro-economy and the external position
are likely to continue in the next few years, supported by the oil price
environment, Nigeria's new Petroleum Industry Act legislation and the
opening of the Dangote refinery that will structurally reduce demand for US
dollars."-This Day.

 

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

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

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Blog:
<https://bullszimbabwe.com/category/blogs/bullish-thoughts/>
www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

 

 


 

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.

 


 

 


(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

 


 

 

 

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220202/11d7139b/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220202/11d7139b/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 409853 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220202/11d7139b/attachment-0004.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 22328 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220202/11d7139b/attachment-0001.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220202/11d7139b/attachment-0005.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65570 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220202/11d7139b/attachment-0001.obj>