Major International Business Headlines Brief::: 03 February 2022

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Major International Business Headlines Brief::: 03 February 2022 

 


 

 


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ü  Facebook: Daily active users fall for first time in 18-year history

ü  CNN's Jeff Zucker resigns over undisclosed relationship

ü  Spotify boss says too early to know Joe Rogan row impact

ü  Andrew Forrest: Australian billionaire launches criminal case against
Facebook

ü  Wordle code could be copied to play for seven years

ü  Fawdon Nestle factory to close with loss of 474 jobs

ü  Meta shares sink 20% as Facebook loses daily users for the first time

ü  The Path to Net Zero Transport is Paved with Partnerships

ü  Sony shares slide as gaming concerns re-emerge

ü  Spotify stock sinks on weaker-than-expected first quarter subscriber
numbers

ü  China smartphone demand helps lift forecasts for chipmaker Qualcomm

ü  Australian mining billionaire files lawsuit against Facebook over scam
ads

ü  Opel to hire temporary workers at German plant amid Omicron absences -
Wirtschaftswoche

ü  Oil prices take a breather, OPEC+ sticks to output plans

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Facebook: Daily active users fall for first time in 18-year history

Social media giant Facebook has seen its daily active users (DAUs) drop for
the first time in its 18-year history.

 

Facebook's parent company Meta Networks says DAUs fell to 1.929bn in the
three months to the end of December, compared to 1.930bn in the previous
quarter.

 

The firm also warned of slowing revenue growth in the face of competition
from rivals like TikTok and YouTube, while advertisers are also cutting
spending.

 

Meta's shares slumped by more than 20% in after-hours trading in New York.

 

The slide in Meta's share price wiped around $200bn (£147.5bn) off the
company's stock market value.

 

Shares in other social media platforms, including Twitter, Snap and
Pinterest, also fell sharply in extended trading.

 

Chief executive Mark Zuckerberg said the firm's sales growth had been hurt
as audiences, especially younger users, had left for rivals.

 

Meta, which owns the world's second biggest digital advertising platform
after Google, also said it had been hit by privacy changes on Apple's
operating system.

 

The changes have made it harder for brands to target and measure their
advertising on Facebook and Instagram and could have an impact "in the order
of $10 billion" for this year, according to Meta's chief financial officer
Dave Wehner.

 

Meta's total revenue, the bulk of which comes from advertising sales, rose
to $33.67bn in the period, narrowly beating market predictions.

 

It also forecast revenues of between $27bn to $29bn for the next quarter,
which is lower than analysts had expected.

 

While the company has been making its own investments in video to compete
with TikTok -owned by Chinese tech giant ByteDance - it makes less money
from those offerings than its traditional Facebook and Instagram feeds.

 

Mr Zuckerberg said he was confident the investments in video and virtual
reality would pay off, as previous bets on mobile advertising and Instagram
stories have.

 

But, he noted, the firm didn't have to contend with a major rival during
previous shifts in strategy.

 

"The teams are executing quite well and the product is growing very
quickly," he said. "The thing that is somewhat unique here is that TikTok is
so big a competitor already and also continues to grow at quite a fast
rate."

 

Facebook has always been a platform that grows.

 

For every quarter in its existence the global numbers have been in one
direction.

 

Yet in the last few years, growth has stalled in Europe and US. That was
masked by rises in users from the rest of the world.

 

Facebook just isn't as popular with younger people as it was. By its own
admission, TikTok is hurting business.

 

But there are other reasons too that investors are worried about Meta.

 

Meta changed its name because it wanted to focus on the Metaverse. But Meta
is nowhere near building a Metaverse yet, it's a pipedream at the moment.

 

Instead it is pumping billions of dollars into trying to create one - all
because Mark Zuckerberg thinks there's an appetite for it - a huge risk.

 

Perhaps the answer to Meta's immediate problems would be to buy TikTok? Well
US regulators would never allow that due to anti-competition laws.

 

And Facebook is now seen by many in Silicon Valley as a poisonous brand.
It's certainly not a cool place to work in the same way it was say ten years
ago.

 

That makes attracting talent more difficult.

 

Meta has some serious problems going forward. This milestone could be just
the beginning.-BBC

 

 

CNN's Jeff Zucker resigns over undisclosed relationship

CNN president Jeff Zucker has resigned from the network after failing to
disclose a romantic relationship with a senior executive.

 

The 56-year-old Mr Zucker said in a memo to colleagues that he was "wrong"
to not report the relationship as required.

 

The relationship was discovered during an investigation into the conduct of
fired CNN anchor Chris Cuomo.

 

Mr Zucker is considered one of the most powerful media executives in the US.

 

In the message sent on Wednesday to the network's staff and shared online by
CNN media correspondent Brian Stelter, Mr Zucker said that he was asked
about his consensual relationship with a colleague during an investigation
into Mr Cuomo's time at CNN.

 

Mr Cuomo was being investigated over efforts to help his politician brother,
former New York governor Andrew Cuomo, fight allegations of sexual
harassment.

 

 

Mr Zucker said that he had worked with the colleague for two decades and
that the relationship had "evolved in recent years".

 

"I was required to disclose it when it began but I didn't," he said. "I was
wrong. As a result, I am resigning today."

 

Mr Zucker's memo did not identify the colleague with whom he had a
relationship but CNN named her as Allison Gollust, the network's executive
vice president and chief marketing officer.

 

"Jeff and I have been close friends and professional partners for over 20
years," she said in a statement quoted by Mr Stelter on air. "Recently, our
relationship changed during Covid. I regret that we didn't disclose it at
the right time."

 

Ms Gollust was an executive at NBC Universal during Mr Zucker's time at that
network as CEO.

 

In 2012, Ms Gollust was named as communicators director for Andrew Cuomo.
She joined CNN the following year after only four months in that role.

 

In her statement, Ms Gollust added that she intends to stay at the network.
Both she and Mr Zucker are divorced, the New York Times reported.

 

Mr Zucker joined CNN in 2013. Under his leadership, it broke viewership
records in 2020 and saw the most viewers in its history during January 2021
- partly as a result of the US Capitol riot on 6 January.

 

Since then viewership has gone down, falling nearly 90% this January
compared to the same time last year, according to Nielsen ratings.

 

At CNN, Mr Zucker faced criticism from those who believed the network gave
too much coverage to the former president, especially during the Republican
presidential primary. Mr Trump has also criticised what he saw as unfair
coverage.

 

During his time at NBC, he approved Donald Trump's reality TV show "The
Apprentice".-BBC

 

 

 

Spotify boss says too early to know Joe Rogan row impact

Spotify's boss says it is "too early to know" how the controversy over Joe
Rogan's podcast, which averages 11m listeners an episode, has hit the firm.

 

Musicians, including Neil Young and Joni Mitchell, asked for their music to
be removed from the platform after criticism that the US broadcaster has
helped to spread Covid misinformation.

 

It comes as Spotify projected slower subscriber growth for this quarter.

 

The streaming company's shares fell by more than 10% in after-hours trading.

 

"Usually when we've had controversies in the past, those are measured in
months, not days," Spotify's chief executive Daniel Ek told investors.

 

"We don't change our policies based on one creator, nor do we change based
on any media cycle or calls from anyone else," he added.

 

The company said revenue for the last three months of 2021 rose to 2.69bn
euros (£2.2bn; $3bn), easily beating market expectations.

 

However, the firm missed analysts' predictions as it forecast that it would
have 183m paying subscribers this quarter.

 

Spotify added that the outlook was "subject to substantial uncertainty" due
to the pandemic.

 

This week, Spotify said it was working to add advisory warnings to any
podcast discussing Covid-19.

 

The company also made public rules which give it the power to remove or
suspend users and podcasts that promote dangerous falsehoods.

 

These are similar to those adopted by social media platforms Facebook,
YouTube and Twitter.

 

Mr Ek said the advisory will direct listeners to a resource hub with facts,
information from experts, and "links to trusted sources".

 

"This new effort to combat misinformation will roll out to countries around
the world in the coming days," he said.

 

"To our knowledge, this content advisory is the first of its kind by a major
podcast platform."

 

Mr Rogan also pledged to try harder to offer more balanced views on his
podcast.

 

In an almost 10-minute long Instagram video posted on Monday, he said he
would "try harder to get people with differing opinions" on his show.

 

The announcements came after several musicians and podcasters asked for
their content to be taken off Spotify.

 

Last week, Neil Young and Joni Mitchell had their music removed from the
streaming platform.

 

They were followed by Soul musician India Arie and British singer-songwriter
Graham Nash, with India Arie saying her decision was partly due to Mr
Rogan's "language around race".

 

Mary Trump, the niece of former US President Donald Trump, has said she had
also deleted her podcast from Spotify.

 

"I know it's not a big deal but hope it will be part of a growing
avalanche," she said on Twitter.-BBC

 

 

 

Andrew Forrest: Australian billionaire launches criminal case against
Facebook

An Australian billionaire has launched a criminal case against Facebook,
alleging the company failed to prevent scam ads that used his image.

 

Andrew Forrest argues Facebook breached Australian anti-money laundering
laws over the spread of cryptocurrency cons.

 

He said it was the first time Facebook was facing a criminal case globally.

 

Facebook's owner, Meta, did not comment on Dr Forrest's case but said it was
"committed to keeping those people [scammers] off our platform".

 

Dr Forrest, who is chairman of miner Fortescue Metals, alleged Facebook had
been "criminally reckless" in not doing more to halt the ads, which first
appeared in early 2019.

 

The scams use his image - and those of other celebrities - to promote bogus
investments that promise riches. Although Facebook bans such ads, many still
appear on the platform.

 

Dr Forrest said he had also written an open letter to Facebook boss Mark
Zuckerberg in November 2019, urging him to take more action.

 

"I'm concerned about innocent Australians being scammed through clickbait
advertising on social media," the mining magnate said in a statement on
Thursday.

 

"I'm acting here for Australians, but this is happening all over the world."

 

The case will be heard in the Magistrates Court of Western Australia from 28
March. If it is successful, Facebook could face fines or be forced to change
its advertising.

 

Dr Forrest has also filed a civil lawsuit in the US state of California,
where Facebook is headquartered.

 

In that lawsuit he alleges that Facebook "knowingly profits from this cycle
of illegal ads", The Australian newspaper reported.

 

One victim in Australia had lost $670,000 (£495,000; A$940,000) because of a
fake endorsement featuring Dr Forrest, the newspaper said, citing court
documents.

 

In a statement to media, the social media company said that scam ads
violated its policies.

 

"We take a multifaceted approach to stop these ads, we work not just to
detect and reject the ads themselves but also block advertisers from our
services and, in some cases, take court action to enforce our policies," a
Meta representative said.-BBC

 

 

 

Wordle code could be copied to play for seven years

The code that powers the website of the viral puzzle game Wordle can be
copied and saved to continue playing it for the next seven years, it has
been revealed.

 

The finding comes amid concerns that the game's sale to the New York Times
may mean it stops being free to play.

 

The code, written in Javascript, appears as plain text for those who know
how to access it.

 

Some publications have even printed a step by step guide of how to do it.

 

"Effectively you can keep a version of the game as it exists today with
enough data to keep you going for a long time," said Prof Alan Woodward, a
computer scientist from University of Surrey.

 

But, he added: "As you have the words stored locally it might be tempting to
cheat, and where's the fun in that?"

 

He added it would not be "too difficult" to split the question grid from the
answers.

 

"You'd need to hold the data in a file that was inaccessible other than to
the game. In essence split the data file of words from the functionality you
see when playing."

 

That may sound like a lot of effort for a daily word game that challenges
users to find a five-letter word in six guesses, with clues along the way.

 

But having risen from a handful of players to millions in just a few months,
some may be willing to try.`

 

The creator Josh Wardle recently sold his game to the New York Times for a
seven-figure sum. He had originally said he did not want to make any money
from the game he created as a distraction for himself and his partner during
lockdown.

 

And copying the code may carry legal risk.

 

Nick Allan, legal director at law firm Lewis Silkin, told the BBC: "The
particular expression of the software code underlying a game like Wordle
will be protected as a literary copyright work under UK copyright law," he
said.

 

"It is not possible to waive UK copyright, and the copyright provided on the
Wordle website is not obviously licensed to the general public on a free,
perpetual open-source basis.

 

"Unless Mr Wardle has provided this type of general licence to the public,
he or the New York Times are likely to still retain the right to enforce the
copyright as they see fit."

 

That means that anyone replicating it or creating a clone game could be
liable for copyright infringement, at least in the UK courts.

 

What next for Wordle and its fans?

Wordle developer donates in-app spend to charity

It might be possible, added Mr Allan, to create a game using different lines
of code that achieve the same result.

 

"Either way this is a complex area, fraught with legal risk for anyone
thinking of using this code to release their own Wordle."

 

And it is likely that the website will be completely re-engineered when the
New York Times takes charge.-BBC

 

 

 

Fawdon Nestle factory to close with loss of 474 jobs

Nestle has announced its confectionery factory in Newcastle is to shut with
the loss of 474 jobs.

 

The global food manufacturer said it was holding talks with employees at the
Fawdon plant but the focus was now on closing it in 2023.

 

A spokeswoman said the majority of production currently in the North East
would move to Halifax, West Yorkshire.

 

The GMB and Unite unions condemned the move and said closing "a
profit-making factory" was "unacceptable".

 

The future of the former Rowntree plant had been in doubt since Nestle
announced in April that it wanted to end production at the site.

 

Fawdon has been producing confectionery since 1958 but, according to unions,
the manufacture of Fruit Pastilles will switch to the Czech Republic and
Toffee Crisps will be made in Poland.

 

In recent years the factory has made other popular brands like Rolos,
Munchies and Matchmakers.

 

In a statement, Nestle said: "From the outset we wanted to provide adequate
time and space for these discussions and it is only right that they are held
directly with our employees and trade unions and not in public.

 

"It remains a priority to support our people and their families through this
process and we thank everybody for their patience."

 

'Devastating impact'

Ross Murdoch, GMB national officer, said: "Closing this profit-making site
and shifting production to Europe is completely unacceptable.

 

"This will have a devastating impact on workers and their families."

 

The union claimed moving production to mainland Europe "will result in
significant additional road and sea miles, increasing pollution and
environmental damage" when transporting goods to the UK for consumption.

 

"GMB and Unite will now speak to members in Fawdon and find out what they
want to do next. We will give them whatever support and resources they need
to fight this," Mr Murdoch added.

 

Joe Clarke, national officer for Unite, said: "Our membership is bitterly
disappointed that alternative proposals to keep the site within Nestle
Fawdon open have been rejected.

 

"We are currently seeking further information in relation to the proposal
and we will enter into dialogue on next steps imminently."

 

Nestle employs more than 8,000 people in the UK and Ireland across 18 sites,
including 14 factories.-BBC

 

 

 

Meta shares sink 20% as Facebook loses daily users for the first time

(Reuters) - Facebook owner Meta Platforms Inc's (FB.O) shares plunged more
than 20% late on Wednesday after the social media company posted a
weaker-than-expected forecast, blaming Apple's privacy changes and increased
competition for users from rivals like TikTok.

 

Facebook’s global daily active users declined from the previous quarter for
the first time, to 1.929 billion from 1.930 billion.

 

Meta said it faced hits from Apple Inc's (AAPL.O) privacy changes to its
operating system, which have made it harder for brands to target and measure
their ads on Facebook and Instagram. It also cited macroeconomic issues like
supply-chain disruptions. read more

 

The 18-year-old tech giant, which also faces pressure from platforms like
TikTok and Google's YouTube, said it expected slowing revenue growth in the
coming quarter due to increased competition for users' time and a shift of
engagement toward such features as its short video offering Reels, which
generate less revenue.

 

Facebook reported 2.91 billion monthly active users in the fourth quarter,
showing no growth compared with the previous quarter.

 

The after-hours slump in Meta shares vaporized $200 billion of its market
value, while peers Twitter Inc (TWTR.N), Snap Inc (SNAP.N) and Pinterest Inc
(PINS.N)lost another $15 billion in value. read more

 

Shares of Alphabet Inc (GOOGL.O), which posted record quarterly sales that
topped expectations on Tuesday, were down nearly 2%. read more

 

Meta, owner of the second-largest digital ad platform in the world after
Google, had previously warned its advertising business faced "significant
uncertainty" in the fourth quarter. read more

 

Meta's chief financial officer, Dave Wehner, told analysts on a conference
call that the impact of Apple's privacy changes could be "in the order of
$10 billion" for 2022.

 

Apple's changes to its operating software give users the choice to prevent
apps from tracking their online activity for ads, making it harder for
advertisers that rely on data to develop new products and know their market.
read more

 

Meta forecast first-quarter revenue in the range of $27 billion to $29
billion. Analysts were expecting $30.15 billion, according to IBES data from
Refinitiv.

 

The company's total revenue, the bulk of which comes from ad sales, rose to
$33.67 billion in the fourth quarter from $28.07 billion a year earlier,
beating analysts' estimates of $33.40 billion, according to IBES data from
Refinitiv.

 

"I'm encouraged by the progress we made this past year in a number of
important growth areas like Reels, commerce, and virtual reality, and we'll
continue investing in these and other key priorities in 2022 as we work
towards building the metaverse," CEO Mark Zuckerberg said in the earnings
release.

 

In Meta's earnings call, he said competition for users was one factor
impacting the business, mentioning short video app TikTok by name and
emphasizing Meta's commitment to providing services for young adults.

 

Net loss from Meta's Reality Labs, the company's augmented and virtual
reality business, was $10.2 billion for the full year 2021, compared with a
$6.6 billion loss the previous year. It was the first time the company had
broken out this segment in its results.

 

Zuckerberg had previously warned that the company's investment in this area
would reduce 2021 operating profit by $10 billion and would not be
profitable "any time in the near future."

 

Reality Labs posted revenue of about $2.3 billion in 2021. The company has
not made public the sales numbers for its virtual reality Quest headsets.

 

The company said on Wednesday it would this year change its stock ticker to
"META," the latest step in its rebrand to focus on the metaverse, a
futuristic idea of virtual environments where users can work, socialize and
play. Meta did not comment on the price of a deal with Roundhill
Investments, which said in January it would stop using the symbol for its
Roundhill Ball Metaverse ETF.

 

The tech giant, which changed its name in October to reflect its metaverse
aims, is betting the metaverse will be the successor to the mobile internet.

 

"Investors looking at Meta are starting to realize that buying their stock
is no longer mostly an investment into their ad platform," said Flynn
Zaiger, CEO of social media agency Online Optimism. "Investing in Meta now
looks more like a commitment that you believe that the metaverse will
replace much of the internet consumers' experience today."

 

Meta's rebrand comes at a time of increasing scrutiny from lawmakers and
regulators over allegations of anticompetitive conduct and over the impacts
of how it handles harmful or misleading content across its Facebook and
Instagram platforms. read more

 

The Thomson Reuters Trust Principles.

 

 

 

The Path to Net Zero Transport is Paved with Partnerships

The worldwide goal of reducing carbon emissions is unlikely to be met
without substantial reduction in the transportation sector.

In the U.K., transport produced 27% of total emissions in 2019. Road
transport alone accounts for 10% of global CO2 emissions, and road transport
emissions are rising faster than those of any other sector, according to the
UN Climate Change Conference (COP26) conference. “To meet the goals of the
Paris Agreement, this transition needs to happen much more quickly,” says
the conference website. “It must include not only cars, but vans, buses,
trucks, and lorries.”[1]

 

Hitachi is playing a significant role in speeding this transition. In recent
years, the company has transformed itself into a digital infrastructure
company, combining its expertise in mobility, energy and digital
technologies to deliver innovative decarbonization solutions to help society
reach a zero-carbon emissions world.

 

“Our ambition is to become a climate change innovator by helping
governments, cities and companies to cut carbon,” says Alistair Dormer,
Chief Environmental Officer and Executive Vice President for Hitachi, Ltd.
“The breadth of Hitachi allows us to combine information technology,
operational know-how and physical products to tackle climate change, and
ultimately improve people’s quality of life.”

 

 

Finding the Right Business Models

The company’s goal is to help its customers reduce emissions through sound
business models using new technologies and digital data to unlock new
revenue streams, maximize efficiencies and minimize risk. “It’s quite
expensive to transition to EV, so we are looking at the commercial economics
to find ways to help organizations transition faster,” says Ram Ramachander,
Chief Digital Officer for Hitachi Europe, Ltd., and Chief Commercial Officer
for Hitachi’s Social Innovation Business in EMEA. “When you talk about the
electrification of transportation, you’re talking about a highly complex
ecosystem, all parts of which need to work together in ways they never have
before. How do we get the total system – the vehicle, the battery, the
charging infrastructure – to work together efficiently and cost effectively?
You have to have a master plan.”

 

It is a complex undertaking that involves cooperation among business,
government and finance, and requires a comprehensive re-thinking and
restructuring of the world’s transportation systems, says Ramachander. The
traditional electricity grid, for example, was not designed to use granular,
real-time digital data. But the ability to collect and use such data is key
to the success of the next-generation grid, to enable a system that collects
and stores energy, then distributes it as needed based on current demand.

 

Hitachi’s “As a Service” Approach

Hitachi is involved in several projects to move transportation systems to
electric. Most recently, Hitachi Europe and First Bus, one of U.K.’s largest
bus operators, are transitioning the operator’s entire fleet to EV. The
partnership uses Hitachi’s zero carbon fleet solution, which uses batteries
and smart charging software to provide “battery as a service,” starting with
the operator’s Caledonia Depot in Glasgow. It’s an example of a business
model that can deliver cost certainty and reduce risks for operators.
Telematics on buses and connectivity at charging points provide real-time
information to manage the infrastructure, helping to balance demand and
costs. Extra energy generated by onsite renewables can be stored in
batteries and fed into the system as needed. “We put all that together as a
service for which operators can pay per bus, per month,” Ramachander
explains.

 

Hitachi and First Bus demonstrated the system during COP26, providing 28
electric buses to transport conference participants.

 

The project will also explore on-site no- or low-carbon energy business
opportunities for the operator. Eventually, the Caledonia Depot may generate
and consume its own electricity, and could provide zero-carbon charging hubs
for other business fleets for a fee, generating revenue for First Bus.

 

Learning from the World’s Largest EV Trial

Hitachi also leads a consortium of organizations in the largest commercial
EV trial in the world, called Optimise Prime. Participants include Royal
Mail, Uber, UK Power Networks, Centrica and Scottish and Southern
Electricity Networks. By building the world’s largest commercial electric
vehicle data set and software, the consortium gains insight into practical
ways of minimizing the up-front costs that limit widespread commercial
deployment of EVs. Through data and smart infrastructure, the system could
help operators better balance demand and network capacity.

 

Businesses striving to reach certain carbon emission reduction goals need to
work with other ecosystem players and a partner that can guide them to the
most efficient and economical path to net zero, says Ramachander. Hitachi
has capabilities to bring all the relevant pieces together to help the
transportation sector evolve. “We have the foundational abilities and
credentials to help that transition happen,” he says. “There are few
companies in the world that have the scale, size, financial rigor and
engineering prowess to tackle this.”

 

To learn more about how the mobility sector can achieve zero emissions, sign
up here for a free virtual panel discussion on Thursday, February 3, 2022 at
12.30pm GMT.

 

Climate Change Innovators

The time for change is now – we must preserve our planet for future
generations. The breadth of Hitachi allows us to combine information
technology, operational know how and physical products to tackle climate
change - and ultimately improve people's quality of life. We are applying
that same innovation to our own business to contribute to a Net Zero
society. Visit Climate Change Innovator - Hitachi Sustainability to learn
how Hitachi Social Innovation is Powering Good and helping drive change
across the globe.

 

 

Sony shares slide as gaming concerns re-emerge

(Reuters) - Shares in Sony Group Corp (6758.T) slid as much as 8.8% in early
trade in Tokyo on Thursday after four consecutive days of gains as concerns
about its gaming business re-emerge amid component shortages and competition
from heavyweight rivals.

 

Sony fell almost 13% last month after rival Microsoft (MSFT.O) announced it
was buying "Call of Duty" developer Activision Blizzard, but more recently
recovered some ground as the group made its own deal for "Destiny" developer
Bungie.

 

The Japanese conglomerate on Wednesday reported an estimate-smashing third
quarter profit on the back of strong box office receipts for Spider-Man: No
Way Home" and a one-off gain, while its gaming unit squeezed out a quarterly
profit rise in part due to lower costs.

 

Sony is struggling to produce enough PlayStation 5 (PS5) units to meet
demand amid component shortages and logistics snarl-ups. It sold fewer units
- 3.9 million - in the third quarter than in the same period a year earlier.

 

The bottlenecks forced a downgrade to Sony's full-year PS5 sales target to
11.5 million units from 14.8 million units. Console makers often take a hit
on new hardware sales as they build out their install base.

 

There is also speculation Sony will be forced to follow Microsoft's move to
offer games on its Game Pass subscription service, potentially squeezing
margins.

 

"We see divisional profitability coming under much pressure going forward,"
Amir Anvarzadeh, market strategist at Asymmetric Advisors, wrote in a note.

 

Sony on Wednesday signalled aggressive plans to maintain its gaming lead,
saying it aims to double first-party gaming revenues and launch at least 10
live service titles, which offer continuous and updated play.

 

"It's actually a big change of course for PlayStation and an area where they
were very passive," said Serkan Toto, founder of the Kantan Games
consultancy.

 

"Investors and competitors should take what Sony said about PlayStation's
future very seriously," he said.

 

The Thomson Reuters Trust Principles.

 

 

 

Spotify stock sinks on weaker-than-expected first quarter subscriber numbers

(Reuters) - Spotify (SPOT.N) on Wednesday forecast current quarter
subscribers lower than Wall Street expectations, but executives sought to
reassure investors that growth had not cratered even as it deals with the
fallout from the controversy around The Joe Rogan Experience podcast.

 

The company's shares fell as much as 18% in late trading after Spotify
reported the subscriber outlook.

 

In an interview with Reuters after the report, Spotify Chief Financial
Officer Paul Vogel said this year's growth rate would not be that much
different than last in terms of users and subscribers.

 

"While we have not given full year guidance anymore on subscribers ... we
don't expect a material difference in the net additions for either users or
subscribers in 2022 relative to 2021," Vogel told Reuters.

 

Shares pared losses and were down between 3% to 9% after the initial shock.

 

The outlook overshadowed fourth-quarter revenue, which came in higher than
analysts' estimates, as the music streaming company sold more advertisements
and newer services such as podcasts, while recording a healthy 16% increase
in paid subscribers for its premium service.

 

Total monthly active users rose 18% to a record 406 million.

 

The company, however, forecast current-quarter paid subscribers of 183
million, below expectations of 184 million. Revenue is expected to meet
estimates of 2.60 billion euros.

 

Spotify said it would no longer offer annual guidance on subscribers.

 

"While investors are clearly disappointed in the first quarter gross margin
trajectory, the real story is ad revenue growing at nearly double the rate
of their subscription business and that's where we believe the meaningful
upside is over the course of the next several years," said Rich Greenfield,
an analyst at LightShed Partners.

 

The subscription music streaming service has invested over a $1 billion in
the podcasting business, led by marquee exclusive shows such as The Joe
Rogan Experience.

 

But the allure of the podcast star also drew condemnation after his show
aired controversial views around COVID-19, drawing protests from artists
Neil Young and Joni Mitchell. read more

 

Rogan, a popular internet commentator, has since apologized and Spotify said
it would start adding content advisories to episodes discussing COVID.

 

Chief Executive Officer Daniel Ek said the company already has a "sizable"
content moderation team in place.

 

"We have taken action on more than 20,000 podcasts since the start of the
pandemic," Ek told Reuters. "So that tells you something about the scale of
this operation. It's truly a global operation."

 

Ek acknowledged the Rogan controversy at the outset of the earnings
conference call, saying it presented learning opportunities. He said he was
proud of the steps Spotify took following the concerns raised by the medical
and scientific communities and he says policies were developed with input
from internal and external exports.

 

"While Joe has a massive audience, he's actually the number 1 podcast in
more than 90 markets, he also has to abide by those policies," Ek said.

 

Spotify said podcast's share of overall consumption hours on its platform
reached an all-time high and it expanded its paid podcast subscriptions in
33 more markets and enabled podcasts for users in Russia, Egypt and Saudi
Arabia.

 

Premium subscribers, which account for most of the company's revenue, rose
to 180 million, beating analysts' expectations of 179.9 million.

 

Quarterly revenue rose to 2.69 billion euros ($3.04 billion) from 2.17
billion a year earlier, and above the 2.65 billion euros expected by
analysts, according to IBES data from Refinitiv.

 

Revenue from users who hear advertisements rose 40% to 394 million euros or
15% of total revenue.

 

"Investors largely ignored Spotify's advertising business during Spotify's
first few years as a public company, with subscriber growth dominating the
narrative," Greenfield said earlier in a note.

 

"As Spotify moved from a music platform to an audio platform (podcasting,
live audio, audiobooks), it has unlocked the potential for a robust
advertising business that is now too large for investors to ignore."

 

Spotify ventured into podcasts in 2018 with a series of acquisitions to
compete with Apple Inc (AAPL.O). Since then it has launched a paid
subscription platform for podcasters in the U.S., opened it up for
advertising, and became the largest podcaster dethroning Apple.

 

Unlike the music business, which is largely commoditized and low margin as
it pays out a part of the revenue to the rights holders, podcasts engage
listeners for hours on end, creating valuable advertising inventory that has
underpinned the optimism by Wall Street over its long term future.

 

($1 = 0.8843 euros)

 

The Thomson Reuters Trust Principles.

 

 

 

China smartphone demand helps lift forecasts for chipmaker Qualcomm

(Reuters) - Qualcomm Inc (QCOM.O) posted record first-quarter revenue on
Wednesday and beat Wall Street forecasts for the current quarter, boosted by
strong growth in the Android business and demand from China's handset
makers.

 

The U.S. chips firm forecast second-quarter revenue between $10.2 billion
and $11 billion, above analysts' estimates of $9.61 billion, according to
IBES data from Refinitiv.

 

The company has benefited from the exit of Huawei Technologies from the
smartphone market, which has led other Chinese phone brands - including
Xiaomi, Honor and Oppo - to turn to Qualcomm for their chip needs.

 

"Android is driving the growth," Qualcomm chief financial officer Akash
Palkhiwala told Reuters. In the first quarter, handset revenues rose 42%
year-over-year to $6 billion, driven by greater than 60% growth in revenues
from Snapdragon chipsets for Android devices.

 

The shifting Chinese market had given Qualcomm "tremendous opportunity...
and we're capitalizing on it," said Palkhiwala.

 

He said during an earnings call that the second half of the fiscal 2022 year
is "shaping up" like the second half of fiscal 2021, with "very strong year
over-year-growth rates."

 

Net income in the first quarter rose to $3.69 billion, or $3.23 per share,
from $2.51 billion, or $2.17 per share, a year earlier. Palkhiwala
forecasted over 30% of non-GAAP EPS growth in the third quarter.

 

Still, Qualcomm shares fell about 3% in after hours trading as the results
were overshadowed by Facebook owner Meta's (FB.O) weaker-than-expected
profit and forecast. read more

 

"We think investors are somewhat concerned about possible demand pull-in
and/or double ordering by its (Qualcomm's) customers due to the industry
supply constraint," said Kinngai Chan, an analyst at Summit Insights Group.

 

While chip supply constraints that have crippled many industries during the
pandemic continue, chief executive Cristiano Amon told the earnings call
that Qualcomm has invested to make sure it is able to deliver to its
customers and that supply will improve in the second half of 2022.

 

Revenue in the first quarter was $10.7 billion, compared with analysts'
estimates of $10.42 billion, according to Refinitiv IBES data. Its chip
segment had first-quarter revenue of $8.85 billion, above analyst
expectations of $8.69 billion, according to data from FactSet.

 

The Thomson Reuters Trust Principles.

 

 

Australian mining billionaire files lawsuit against Facebook over scam ads

(Reuters) - Iron ore magnate Andrew Forrest said on Thursday he is launching
criminal proceedings against Meta Platform Inc's (FB.O) Facebook in an
Australian court, alleging that it breached anti-money laundering laws and
its platform is used to scam Australians.

 

Forrest, Australia's richest man and chairman of Fortescue Metals Group
(FMG.AX), said he was taking the action to stop people losing money to
clickbait advertising scams, such as ones using his image to promote
cryptocurrency schemes.

 

The lawsuit filed by Forrest in the Magistrates Court of Western Australia
alleges Facebook "failed to create controls or a corporate culture to
prevent its systems being used to commit crime."

 

It also alleges Facebook was criminally reckless by not taking sufficient
steps to stop criminals from using its social media platform to send scam
advertisements to defraud Australian users.

 

The lawsuit comes after Forrest said he made several requests asking
Facebook to prevent his image from being used to promote investment plans,
including in an open letter to Chief Executive Mark Zuckerberg in November
2019.

 

Facebook, which changed its name to Meta last year, declined to comment on
the lawsuit but said that in general it has always taken a "multifaceted
approach" to stop such ads appearing and had blocked advertisers.

 

"We're committed to keeping these people off our platform," a spokesperson
for Meta said in an emailed statement.

 

Some advertisements, which have used Forrest's image and claimed to promote
cryptocurrency investment schemes, have appeared on Facebook since March
2019, the lawsuit said.

 

"This action is being taken on behalf of those everyday Australians – Mums
and Dads, Grans and Grandads – who work all their lives to gather their
savings and to ensure those savings aren't swindled away by scammers,"
Forrest said in a statement.

 

Under Australian law, a private prosecution of a foreign corporation for
alleged offences under the Commonwealth Criminal Code requires the consent
of the country's attorney general.

 

"The Attorney-General has given her consent to the private prosecution
against Facebook in relation to alleged offences under subsection 400.7(2)
of the Criminal Code," said Steven Lewis, principal of Mark O'Brien Legal,
which will represent Forrest in the case.

 

The office of Attorney General Michaelia Cash did not immediately respond to
a request seeking comment.

 

If Facebook is found guilty, it will face a maximum penalty of A$126,000
($90,000) on each of three charges, Lewis said.

 

An initial hearing has been set for March 28, Forrest said.

 

In September last year, Forrest filed a separate civil case against Facebook
in the Superior Court of California, County of San Mateo.

 

Facebook has been under pressure in Australia after disagreeing initially
with a new law that required it and Google (GOOGL.O) to pay for links to
media companies' content.

 

($1 = 1.4035 Australian dollars)

 

The Thomson Reuters Trust Principles.

 

 

 

Opel to hire temporary workers at German plant amid Omicron absences -
Wirtschaftswoche

(Reuters) - Opel plans on hiring several hundred temporary workers to help
deliver its new Astra model, a spokesperson told German paper
Wirtschaftswoche on Thursday, in part to compensate for workers off sick
with COVID-19 amid the spread of the Omicron variant.

 

The carmaker, which is owned by Stellantis (STLA.MI) and operates three
plants in Germany, cut 2,100 positions at the firm between January 2020 and
2022 by allowing contracts to run out and not re-hiring.

 

The temporary workers were now needed at Opel's main plant in Russelsheim to
assist in ramping up production of the new Astra L, the carmaker told
Wirtschaftswoche, delivery of which began in January this year.

 

The Thomson Reuters Trust Principles.

 

 

 

Oil prices take a breather, OPEC+ sticks to output plans

(Reuters) - Oil prices eased on Thursday following weak U.S. payrolls data
and some profit taking, but remained underpinned by tight supply as OPEC+
producers stuck to planned moderate output increases.

 

Brent crude fell 17 cents, or 0.2%, to $89.30 a barrel by 0420 GMT, after
rising 31 cents on Wednesday. U.S. West Texas Intermediate crude was down 31
cents, or 0.4%, at $87.95 a barrel, having gained 6 cents the previous day.

 

"This morning's dip might be a result of the shockingly low U.S. ADP
employment print last night, but we believe the supply squeeze may drive oil
prices higher through this year," said Howie Lee, economist at OCBC in
Singapore.

 

U.S. private payrolls fell for the first time in a year in January, raising
the risk of a sharp decline in employment that would deal a temporary
setback to the labour market. read more

 

Still, tight global supplies and geopolitical tensions in Eastern Europe and
the Middle East have boosted oil prices by about 15% so far this year. Over
the past week, crude benchmarks hit their highest prices since October 2014,
with U.S. crude rising to as much as $89.72 on Wednesday and Brent touching
$91.70 on Friday.

 

Prices were also pressured late on Wednesday after Iran's Oil Minister said
the country was ready to return to the oil market as quickly as possible,
but offered few details.

 

"The oil market is not really any closer to seeing additional barrels of
crude, but today we are not seeing any fresh catalysts to send prices to
fresh highs," said Edward Moya, senior market analyst at OANDA.

 

The Organization of the Petroleum Exporting Countries and allies led by
Russia, known as OPEC+, agreed on Wednesday to stick to moderate rises of
400,000 barrels per day (bpd) in its oil output with the group already
struggling to meet existing targets and despite pressure from top consumers
to raise output more quickly. read more

 

"OPEC+ will save larger-than-expected production promises for when oil is
over $100 a barrel," said Moya.

 

The group blamed surging prices on the failure of consuming nations to
ensure adequate investment in fossil fuels as they shift to greener energy,
while several OPEC+ sources also said prices had been pushed up by
Russia-U.S. tensions.

 

The OPEC+ Joint Technical Committee said in a report that it expects the
overall surplus in 2022 to reach 1.3 million bpd, slightly less than its
previous forecast of 1.4 million bpd. read more

 

U.S. crude stockpiles fell by 1 million barrels last week, the U.S. Energy
Information Administration said on Wednesday, against expectations for an
increase, while distillate inventories also dropped amid strong demand both
domestically and in export markets.

 

Keeping a floor on prices, a major winter storm is expected to wallop much
of the central United States and stretch to parts of the Northeast this
week, bringing heavy snow, freezing rain and ice, the National Weather
Service said. The storm comes days after a deadly winter blast and could
boost prices of oil, especially as some regions substitute out natural gas
where supply may be scarce. read more

 

The Thomson Reuters Trust Principles.

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2022

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

 

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


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<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
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