Major International Business Headlines Brief::: 08 February 2022

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Major International Business Headlines Brief::: 08 February 2022 

 


 

 


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

 


 

 


ü  US and Japan agree to cut Trump-era steel tariffs

ü  The people fighting price rises by trying to buy nothing

ü  Frontier to buy Spirit Airlines in $2.9 bln budget carrier deal

ü  Tesla receives subpoena from U.S. securities regulator over 2018
settlement

ü  Asian stocks drift lower, euro holds steady before U.S. inflation data

ü  SoftBank posts $251 mln Q3 profit; Arm deal collapses

ü  Beauty revival seen boosting end-of-year sales at L'Oreal

ü  Judge dismisses fired Amazon worker's lawsuit alleging discrimination

ü  Neil Young takes aim at Spotify CEO, big banks

ü  South Korea's Hyundai Motor to take a fresh crack at Japan sales

ü  WuXi Biologics sees no impact from addition to unverified list for U.S.
exports

ü  Malaysia's Supermax adopts new management policy on migrant workers

ü  Dubai's SHUAA Capital files with SEC for potential SPAC listing in NY

ü  Nigeria: Worsening Insecurity Threatens Nigeria's Economic Recovery - IMF

ü  Nigeria: Again, IMF Urges Nigeria to Increase VAT, Remove Fuel Subsidy

ü  Tanzania: Dse Up in January At Expenses of Bond Market

ü  Tanzania: Payment for Farm Inputs Suppliers in Due Course

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

US and Japan agree to cut Trump-era steel tariffs

The US and Japan have agreed to remove Trump-era tariffs from around 1.25
million metric tonnes a year of Japanese steel imports.

 

Under the deal, Japan says it will help to tackle excess steel supplies,
which push down prices.

 

The agreement is aimed to stamp out "unfair practices" in the global steel
industry, which is dominated by China.

 

The Biden administration has already made a similar deal with the EU but
tariffs remain in place on UK imports.

 

The agreement with Japan, which takes effect on 1 April "will further help
us rebuild relationships with our allies around the world as we work to
fight against China's unfair trade practices," US Commerce Secretary Gina
Raimondo said.

 

During Donald Trump's presidency Washington imposed tariffs on a number of
countries, citing cheap metal imports as a national security threat.

 

Under the new deal, the US will stop charging a 25% levy on Japanese steel
imports, excluding aluminium, up to a 1.25m metric tonne annual threshold.

 

Meanwhile, Tokyo said it will take steps within six months to support what
the US and Japan see as a fairer steel market.

 

These include taxing goods believed to be priced below market value, and a
levy to offset subsidies that an exporter has received.

 

The announcement was cautiously welcomed by investment experts.

 

"This lifting of Trump-era tariffs on steel is consistent with expectations
that the Biden administration would align its geo-political and trade
alliances," Vishnu Varathan, head of economics and strategy at Mizuho Bank,
told the BBC.

 

"However, the reality is that even the initial tariffs did not impact China
too badly. So, this deal may really be more about reparations of relations
in a longer trade game," he added.

 

On 1 January, a deal between the Brussels and Washington took effect which
allows tariff-free exports of EU steel and aluminium to the US.

 

However, the UK has not yet reached an agreement to lift tariffs imposed on
its steel and aluminium exports during the Trump era.

 

Last month, US Trade Representative Katherine Tai said the issue would be
addressed "when the time is right".-BBC

 

 

 

The people fighting price rises by trying to buy nothing

Prices in the US soared 7% last year - the biggest annual increase in nearly
four decades. Now US consumers - whose spending powers the world's largest
economy - are starting to signal they have had enough.

 

"I find now, that I'm constantly tracking the cost of certain items," Sevan
Tavoukdjian says. "It's changed which items I buy."

 

The 34-year-old actor moved into his own apartment in New York City last
month and when he saw how much it would cost to furnish it, he was shocked
at the prices being charged.

 

So, he scrapped plans to buy furniture and instead sent a message to his
neighbourhood “Buy Nothing” Facebook group, where people offer unwanted
items for free.

 

“I thought, 'I’m going to go broke just buying the basic necessities'," he
says. “I would have loved to buy a new couch, but the prices are like, ‘Well
– No’.”

 

The average American family had to spend roughly $3,500 (£2,600) more last
year than in 2020 for the same goods and services due to inflation,
according to researchers at the University of Pennsylvania Wharton School.

 

 

Housing costs were up 4.2%, grocery bills jumped 6.3% and clothing prices
were 5.8% higher. Living and dining furniture - like Mr Tavoukdjian was
seeking - saw one of the biggest spikes, rising more than 17%.

 

But salaries have not kept up with the increases, pushing people to forego
purchases, substitute cheaper alternatives, or - like Sevan - hunt for
something free.

 

The situation has driven a surge in activity on neighbourhood exchanges such
as the Buy Nothing Project, the group Mr Tavoukdjian turned to when he
wanted to furnish his apartment, building on growth since the start of the
pandemic.

 

Membership in the group has more than doubled over the past two years to
more than 5.3 million globally. It recently added an app to cope with
demand.

 

At Freecycle, a similar site where participants typically offer up some
20,000 items each day, the number of posts each day has increased by about
15% in recent months, driven by the financial concerns, founder, Deron Beal
says.

 

"People, understandably, they're buying petrol or going to the store and
seeing high prices...seek to pinch their pennies a little bit and
Freecycle... is a good alternative," he says.

 

Even families with higher incomes, who might ordinarily be insulated from
the pressures, are reconsidering their ordinary spending, says Tania Brown,
a financial planner based in Georgia, with more than 20 years' experience.

 

“There is an across-the-board sense of worry about inflation: ‘How long is
this going to last, how this is going to impact their daily life',” she
says. “I am definitely hearing differences and changes.”

 

The squeeze contributed to a pullback in consumer spending in December - a
deceleration that is likely to continue, says Kathy Bostjancic, chief US
financial economist at Oxford Economics.

 

Her firm expects consumer spending growth of around 3.5% this year – still
strong, but a marked slowdown from last year’s massive 8% gain, not
including inflation.

 

“Consumers, both out of price 'sticker shock', and also frustration that
the
 choices they have available are so lean, have decided to make
alternative choices – whether that’s not to buy at all, or find a
second-hand couch,” she says.

 

Given the mix of factors driving inflation - supply chain hold-ups, labour
shortages, government stimulus and more - it's hard to say when households
will get some relief from falling prices, if demand wanes, says economist
Zheli He, who worked on the University of Pennsylvania research.

 

Purchases of some hard-to-substitute items, such as petrol, have kept rising
despite dramatic price gains, she says.

 

"People just have to spend on them [hard-to-swap items] so, the higher
prices will just drive up their cost of living," she says.

 

Mr Tavoukdjian, who has been grappling with cuts to his hours teaching as an
adjunct literature professor, says he's been amazed by what people are
offering in his local Buy Nothing group: everything from never-been-used
pillows and plates, to hand-me-down children's toys and clothes - and
sometimes more off-beat items such as breast milk.

 

His own plea for help was amply answered. Within days, he had transformed
his bare-bones New York City studio into a home, adding five chairs, two
small tables, two lamps, a sofa, rug, microwave, toaster, several sets of
dishes, paintings and half a dozen throw pillows.

 

But the shock of the prices from his initial search has lingered.

 

When his vacuum cleaner broke recently, he didn't pull out his wallet for a
new one. He headed to Buy Nothing for help.

 

“They’ve made a massive difference,” he says. “It’s amazing what’s out
there.”-BBC

 

 

 

Frontier to buy Spirit Airlines in $2.9 bln budget carrier deal

(Reuters) - Budget carriers Frontier Group Holdings and Spirit Airlines Inc
(SAVE.N) on Monday unveiled plans to create the fifth-largest U.S. airline
in a $2.9 billion tie-up likely to tighten competition against traditional
carriers.

 

The proposal to form a new no-frills carrier controlled by Frontier Airlines
pushed up shares of Spirit as much as 18.7%, though several analysts pressed
the airlines over possible difficulties in obtaining regulatory approval.

 

"In a competitive industry like ours, the lowest costs always win," Frontier
Chief Executive Barry Biffle told analysts. "These low costs will, in turn,
enable us to keep our fares low for customers."

 

The move comes at a time when the U.S. airline industry is grappling with
volatility in travel demand due to new COVID-19 variants. At the same time,
costs are soaring on a combination of rises in wages, fuel prices and
airport charges.

 

Spirit's wage expense as a percentage of revenue shot up by more than 10
points last year versus 2019. Higher fees prompted Frontier to exit airports
such as Los Angeles and San Jose in California, and stop serving
Washington-Dulles and Newark.

 

The merger, which is expected to close in the second half of 2022, is
projected to result in synergies of $500 million a year, mainly through
operational savings.

 

The companies pledged to avoid any job losses and add 10,000 direct jobs by
2026. They also promised the merger would deliver $1 billion in annual
consumer savings and offer more than 1,000 daily flights to over 145
destinations.

 

Peter McNally, global sector lead for industrials, materials and energy at
research firm Third Bridge, said cost pressure is the biggest threat to
recovery in the airline industry's profit.

 

The merged company would be in an "excellent" position to combat rising
operating costs, McNally said.

 

ANTITRUST HURDLE

 

But some analysts warned the deal could face opposition from the White House
as U.S. President Joe Biden's administration takes a tough stance on big
corporate mergers.

 

The Department of Justice (DOJ) declined to comment on the merger proposal.
A White House spokesperson did not comment on the proposal but said the
administration "is committed to protecting competition across a wide range
of industries for the benefit of consumers."

 

The DOJ has filed an antitrust lawsuit against American Airlines Group Inc
(AAL.O) and JetBlue Airways Corp over their partnership, alleging it would
lead to higher fares in busy Northeastern U.S. airports.

 

Biffle acknowledged the Frontier-Spirit deal would require DOJ approval but
predicted it would be "well received" by regulators because it would lead to
"low fares to more people in more places".

 

Data from Cirium, an aviation data company, shows the two carriers overlap
in only 18% of their routes.

 

Shares of Spirit Airlines closed up 17.2% at $25.46. Frontier's shares ended
the day with a gain of 3.5% at $12.82.

 

Renowned airline investor Bill Franke, a pioneer of rock-bottom fares
coupled with top-up charges offered by ultra low-cost carriers (ULCC), will
be chairman of the new airline, whose brand name and CEO have not been
announced.

 

Franke's private equity firm Indigo Partners, which is Frontier's majority
shareholder, had previously invested in Spirit which was once considered a
suitor for Frontier.

 

Ultra low-cost carriers are a tier below Southwest Airlines (LUV.N), which
pioneered the low-cost concept in the 1970s, and they have continued to
expand during the COVID-19 pandemic.

 

The companies expect the deal to accelerate investment and help take on
major U.S. airlines like American, Delta Air Lines (DAL.N), Southwest and
United Airlines Holdings .

 

The merger would be worth $6.6 billion including the assumption of net debt
and operating lease liabilities.

 

Colorado-based Frontier would own a 51.5% stake in the combined entity.

 

Under the cash-and-stock deal, Spirit's shareholders would receive $25.83
per share, a premium of 18.8% to Friday's close.

 

Both airlines use Airbus SE (AIR.PA) jets and signaled they were not looking
at cancelling airplane orders.

 

The Thomson Reuters Trust Principles.

 

 

 

Tesla receives subpoena from U.S. securities regulator over 2018 settlement

(Reuters) - Tesla Inc (TSLA.O) said on Monday it received a subpoena from
the U.S. securities regulator related to a settlement that required Chief
Executive Elon Musk's tweets on material information about the company to be
vetted.

 

The subpoena by the U.S. Securities and Exchange Commission was issued on
Nov. 16, some 10 days after Musk asked his Twitter followers if he should
sell 10% of his stake in the company, triggering a stock selloff.

 

As of last close, the electric-car maker's shares had fallen by nearly a
quarter since the tweet. The shares were down 1.4% at $909.98 on Monday
morning.

 

The SEC's latest action, which was disclosed in a securities filing by the
automaker, adds to pressure on Tesla from federal auto safety regulators
regarding vehicle recalls and investigations related to its
driver-assistance software. The SEC declined to comment.

 

In 2018, Musk settled a lawsuit by the SEC over his tweet on taking the
company private, agreeing to have the company's lawyers pre-approve tweets
with material information about the company.

 

Tesla in December was hit by a lawsuit over Musk's social media posts
including his Twitter poll on stock sales that pulled down the company's
share price. This was not the first lawsuit accusing Musk of violating the
settlement terms.

 

Reuters reported last year that the SEC has opened an investigation into a
whistleblower complaint that Tesla failed to properly notify its
shareholders and the public of fire risks associated with solar panel system
defects over several years.

 

Tesla said on Monday it "routinely" cooperates with government subpoenas and
other investigations and inquiries.

 

In the filing, the company also said the California Department of Fair
Employment and Housing investigated allegations of race discrimination and
harassment in Tesla workplaces and gave notice that it has grounds to file a
civil complaint against the electric-car maker.

 

Tesla has already been battling a series of lawsuits on racial abuse and
sexual harassment, and a federal jury in October ordered the company to pay
$137 million to a Black former contract worker in one of the cases.

 

New York State Common Retirement Fund said on Monday that it has filed
shareholder proposals with Tesla, Activision Blizzard Inc and Starbucks
Corp, requesting they report on their efforts to prevent harassment and
discrimination against employees.

 

The proposals ask the companies to disclose, among other things, the total
number and aggregate dollar amount of disputes settled related to sexual
abuse or harassment or discrimination.

 

MUSK-WHITE HOUSE TENSION

 

Tesla and the White House have been at odds over the past few months, with
the Biden administration focusing on legacy automakers, including Ford Motor
Co (F.N) and General Motors (GM.N) in the electric vehicle race.

 

Last month, GM and Ford's CEOs attended a meeting of tech and auto companies
hosted by U.S. President Joe Biden. Musk was not on the list of attendees.

 

Musk has been using his Twitter account to attack the Biden administration
for allegedly ignoring Tesla and holding up Detroit automakers as leaders in
the shift to electric vehicles. Musk called Biden a "damp sock puppet" in a
tweet last month.

 

Musk is also feuding with the United Auto Workers (UAW) union, a key ally of
Biden's. The National Labor Relations Board in March ordered Musk to delete
a tweet that said Tesla workers could lose stock options if they voted to
join the UAW. Tesla is appealing that order.

 

Tesla said on Monday the fair market value of the electric-vehicle maker's
bitcoin holdings as of Dec. 31 was $1.99 billion.

 

The company, which had invested $1.5 billion in bitcoin last year before
selling 10% of the holding, said it registered about $101 million in
impairment losses last year due to the value of bitcoin.

 

The Thomson Reuters Trust Principles.

 

 

 

Asian stocks drift lower, euro holds steady before U.S. inflation data

(Reuters) - Asian shares reversed early gains, with investors in Chinese
stocks unsettled by U.S. moves against 33 Chinese entities, with markets
otherwise waiting for U.S inflation data that could influence how fast the
Federal Reserve raises interest rates.

 

Traders are alert for rate hikes in both the euro zone and the United States
after the European Central Bank last week was considered to have adopted a
more hawkish tone.

 

Euro Stoxx 50 futures eased and FTSE futures edged up 0.1%, indicating a
mixed start for European equities.

 

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS)
shed 0.3% to 612.3 after rising to 617.7, the highest since January 25. The
benchmark is up nearly 3% from a more than one-year low of 595.99 struck on
Jan 27.

 

"Much of investors' concern is focused on the five Fed increases that
markets are pricing in for 2022, and if they won't be sufficient to contain
inflation," Seema Shah, chief strategist at Principal Global Investors, said
in a note.

 

"Yet, the Fed's urgency to tighten should soon ease as the most acute
economic price pressures start fading. Furthermore, while U.S. growth has
likely peaked, a recession isn't in the cards," she said.

 

Japan's Nikkei (.N225) rose 0.3%, Korean stocks (.KSII) went up 0.5% and
Taiwan (.TWII) gained 0.7%.

 

Chinese stocks (.CSI300) were the standout losers, with the CSI300 index
(.CSI300) down 1.8% as investors fretted over the prospect of the U.S.
government adding a further 33 Chinese entities to its export control list.
read more

 

Hong Kong's Hang Seng index (.HSI) shed 1.5%, weighed down by losses in tech
shares.

 

U.S. consumer price figures for January are due on Thursday and could show
core inflation accelerating to the fastest pace since 1982 at 5.9%.

 

"Central banks are really front and center in everyone's narrative. We
believe they want to be patient," analysts at MFS Investment Management said
in a report.

 

"We believe they're aware of their footprint in the marketplace today, but
at minimum we can say in no uncertain terms, that financial conditions will
be tightening in 2022 and therefore likely more conducive to errors."

 

S&P 500 futures held steady, while Nasdaq futures put on 0.1% in Asian
trading.

 

Major Wall Street stock indexes ended down as markets digested mixed
quarterly results. read more

 

"Corporate profits are the strongest in decades, consumers are backed by
excess savings, and gradual supply chain normalization should provide a
boost to inventories and production," Shah of Principal Global Investors
said.

 

The U.S. January payrolls report on Friday showed annual growth in average
hourly earnings climbed to 5.7%, from 4.9%, while payrolls for prior months
were revised up by 709,000 to radically change the trend in hiring.

 

The prospect of hikes has bond markets reeling, and in Asia both Treasuries
and Japanese government bond yields rose, with the yield on benchmark
10-year Treasuries up about 3 basis points to 1.9500%.

 

German two-year bonds had their worst week since the spring of 2008 last
week and selling had extended on Monday, with Italian and Greek bond prices
hit hardest.

 

In foreign exchange markets, the euro inched down 0.16% to $1.1415, having
shot up 2.7% last week in its best performance since early 2020 on the
tightening expectations. read more

 

The dollar crept 0.2% higher on the yen to 115.45.

 

Oil prices eased on Tuesday ahead of talks between the United States and
Iran officials, which could lead to the removal of U.S. sanctions on Iranian
oil sales.

 

Brent crude was last down 0.2% to $91.1 a barrel after hitting a seven-year
high of $94 on Monday.

 

Spot gold prices were steady at a 1-week high at $1,821 per ounce.

 

The Thomson Reuters Trust Principles.

 

SoftBank posts $251 mln Q3 profit; Arm deal collapses

(Reuters) - SoftBank Group Corp (9984.T) reported on Tuesday that it had
squeezed out a net profit of 29 billion yen ($251 million) for the quarter
from October to December, as tech portfolio valuations weaken at its Vision
Fund unit.

 

The result compared with a profit of 1.17 trillion yen in the same period a
year earlier, when SoftBank booked what was at the time a record quarterly
result as its portfolio rallied.

 

After tech unicorns plunged into the "valley of the coronavirus" in the
early days of the COVID-19 pandemic, SoftBank CEO Masayoshi Son rode a
recovery in valuations as startups such as e-commerce firm Coupang came to
market.

 

Now valuations are again under pressure as investors cast a sceptical eye
over tech firms promising future profits and central banks move towards
paring pandemic stimulus.

 

The Vision Fund unit posted an investment gain of 111.45 billion yen during
the quarter.

 

Many portfolio companies are trading below their listing price, with
office-sharing firm WeWork (WE.N), ridehailer Grab and used-car platform
Auto1 all falling during the quarter.

 

The group's exposure to China has also affected performance, as regulators
take action against tech firms. Shares of e-commerce giant Alibaba
(9988.HK), in which SoftBank has a stake, dropped a fifth in the three
months to the end of December.

 

Such assets are used by the group for loans as it invests through its Vision
Fund unit, which runs the $100 billion Vision Fund and a smaller second
fund.

 

Vision Fund 2, which had $51 billion in committed capital at Dec-end, has
invested $43.1 billion in more than 200 startups.

 

SoftBank said separately on Tuesday its deal to sell chip designer Arm to
Nvidia (NVDA.O) had fallen through amid regulatory hurdles.

 

The earnings come at a watershed moment for the conglomerate as senior
executives exit the firm, including Chief Operating Officer Marcelo Claure,
who led the restructuring of WeWork and launched the group's Latin
American-focused fund.

 

Son, who three months ago said SoftBank was in a "blizzard", will speak at a
news conference at 4:30pm local time (0730 GMT).

 

($1=115.4500 yen)

 

The Thomson Reuters Trust Principles.

 

 

 

Beauty revival seen boosting end-of-year sales at L'Oreal

(Reuters) - The world's largest cosmetic group L’Oreal is expected to report
brisk fourth-quarter sales on Wednesday after pandemic-weary consumers
emerged from lockdowns to splash out on beauty products.

 

Investors will look for the impact of increased marketing spending on
L'Oreal's (OREP.PA) margin, and tune in to executives' results presentation
Thursday for any clues on whether sporadic lockdowns to curb the coronavirus
might have weighed on cosmetic sales in China.

 

The purveyor of Maybelline and Lancome brands does not disclose business
targets. It is expected to post like-for-like sales growth of 9.3% for the
last three months of the year, according to consensus estimates cited by
Credit Suisse.

 

In common with rival Estee Lauder, L’Oreal is likely to have benefited from
higher employment and rising wages in the United States, where consumers
have been treating themselves to luxury products as socialising resumed.

 

The trend is expected to boost L’Oreal's second-largest division, L’Oreal
Luxe, which sells Yves Saint Laurent lipstick and Kiehl’s face cleansers.
Last year, the unit acquired Youth to the People, a California-based label
that sells skincare with vegan ingredients. L'Oreal shares have risen 21.5%
over the last 12 months.

 

After cutting advertising and product launches when the pandemic hit in
2020, L’Oreal last year resumed spending on marketing and new products,
including a line of Valentino cosmetics.

 

L'Oreal also redirected its focus from physical stores to online
distribution, training and recruiting stylists online and enlisting
social-media influencers to plug brands such as its no-frills CeraVe
skincare line, on TikTok.

 

Its operating margin is projected to have grown by 40 basis points over
2021, despite a 165-point margin expansion for the first half, according to
Credit Suisse estimates.

 

"Although the company’s strong topline growth and mix impacts might suggest
that margin expansion should be stronger, we do not think L’Oreal will stray
too far from its proven model of reinvestment and thus modest margin
improvements," Credit Suisse analyst Eamonn Ferry said.

 

L'Oreal has steadily gained market share in the beauty and personal care
market over recent years. Its 9.8% market share puts it ahead of rivals
Procter & Gamble, Unilever and Estee Lauder in the category, a position it
has held since 2016, data from Euromonitor International shows.

 

Estee Lauder, which owns La Mer and Clinique brands, last week raised its
annual revenue and profit projections after shoppers returned to stores over
the holidays to stock up on makeup and skincare, undeterred by price hikes.
read more

 

The Thomson Reuters Trust Principles.

 

 

 

Judge dismisses fired Amazon worker's lawsuit alleging discrimination

(Reuters) - A federal judge on Monday sided with Amazon.com Inc in
dismissing a discrimination lawsuit that workplace organizer Christian
Smalls had filed against his former employer.

 

U.S. District Judge Rachel Kovner rejected Smalls' claim that Amazon had
fired him because he is Black and had opposed discriminatory COVID-19
policies.

 

Smalls' allegation that Amazon subjected a largely non-white workforce to
conditions inferior to that of its mostly white managers, by failing to
provide necessary protective gear, failed on the merits as well, Kovner
said.

 

Smalls had no immediate comment. Amazon did not immediately comment.

 

The online retailer terminated Smalls in March 2020, saying he joined a
protest at its warehouse on New York City's Staten Island despite being on
paid quarantine from close contact with a person diagnosed with COVID-19.

 

In the months since, Smalls has led an organizing campaign at the warehouse
to create what he and peers call the Amazon Labor Union and demand safer
conditions, higher wages and job security. The U.S. National Labor Relations
Board said last month that the group could proceed with a union election.

 

Smalls' firing has remained an issue for New York state Attorney General
Letitia James, who wants a court order requiring his reinstatement. Smalls
has the option to file an amended complaint within 30 days, as well.

 

The case is Smalls v Amazon Inc, U.S. District Court, Eastern District of
New York, No. 20-05492.

 

The Thomson Reuters Trust Principles

 

 

 

Neil Young takes aim at Spotify CEO, big banks

(Reuters) - Singer-songwriter Neil Young has asked employees of Spotify
Technology SA (SPOT.N) to quit their jobs while urging people to withdraw
their money from big American banks, in protests over coronavirus
misinformation and climate change.

 

Young, in a statement on his website, criticized the music streaming
platform's chief executive officer, Daniel Ek, saying he was the main
problem, in the wake of criticism of U.S. podcaster Joe Rogan, who has
courted controversy with his views on COVID-19 vaccines and his use of
racial slurs.

 

Spotify hosts the top-rated podcast "The Joe Rogan Experience" podcast.

 

"In our communication age, misinformation is the problem. Ditch the
misinformers," Young said in the statement.

 

The rock star pulled his content from the streaming platform last month
after objecting to his music being played on the same platform as Rogan's
podcast, over what Young said was misleading information on vaccines.

 

Several prominent figures including singer-songwriter Joni Mitchell,
guitarist Nils Lofgren and best-selling U.S. professor and author Brene
Brown followed suit. read more

 

Young also urged people to move their money out of multinational banks
JPMorgan Chase & Co (JPM.N), Citigroup Inc (C.N), Bank of America Corp
(BAC.N) and Wells Fargo & Co , calling them "damage causers" for their
funding of fossil fuels.

 

Rogan has apologized for both the racial slurs and the controversy over
COVID vaccines.

 

Young's comments come a day after Ek told his staff that while he condemned
the slurs used by Rogan, the company would not be silencing him. read more

 

Addressing employees of the music platform, Young said: "I say Daniel Ek is
your big problem - not Joe Rogan. Get out of that place before it eats up
your soul."

 

Young also urged fellow musicians and artists to take their output
elsewhere.

 

The platform saw more than $2 billion wiped off its market value last week
amid the uproar over COVID misinformation.

 

The company has said it would add a "content advisory" to any episode that
includes discussion of the coronavirus. read more

 

The Thomson Reuters Trust Principles.

 

 

 

South Korea's Hyundai Motor to take a fresh crack at Japan sales

(Reuters) - South Korea's Hyundai Motor Co (005380.KS) said on Tuesday it is
returning to Japan 12 years after leaving because of poor sales, as growing
demand for electric vehicles offers a fresh opening in a market dominated by
Toyota Motor (7203.T).

 

Hyundai said it will sell its Nexo SUV hydrogen fuel cell electric vehicle
and its Ioniq 5 midsize crossover electric vehicle (EV), which is at the
heart of the company's attempt to capture 10% of global EV sales by 2025.

 

"We haven't yet set a target for sales, but we will try to provide more
information once we begin taking orders online in May," the head of Hyundai
Mobility Japan, Shigeaki Kato, said at a launch event in Tokyo.

 

Hyundai, which along with affiliate Kia Corp (000270.KS) dominates
neighbouring South Korea's auto market, made its first bid to capture market
share in Japan in 2001, but left after selling only 15,000 cars.

 

 

Of the five million cars sold in Japan annually around nine tenths are
Japanese brands, with Toyota Motor holding around a 40% market share.
Outside of luxury models, foreign makers have struggled to chip away at that
lead.

 

Booming demand for EVs, including Tesla Inc (TSLA.O) models, however, may
mean a second chance for legacy manufacturers such as Hyundai, Volkswagen AG
(VOWG_p.DE) and Stellantis (STLA.MI), the maker of Peugeot cars.

 

Although only around 20,000 EVs were sold in Japan last year, the segment
grew by almost a half from a year earlier even as overall car sales edged
down. Imports of EVs jumped almost three times to a record 8,610 vehicles,
according to the Japan Automobile Importers Association (JAIA).

 

In a video message at the presentation in Tokyo, Hyundai CEO Jaehoon Chang
apologized for the car company's departure 12 years ago. Only 600 Hyundai
cars were still driving in Japan, he added.

 

This time around, Kato later explained, Hyundai will focus on online sales,
and is partnering with a car sharing service operated by online social
gaming company DeNA Co (2432.T) and insurance company Sompo Holdings
(8630.T) that lets private car owners rent out their vehicles.

 

The Thomson Reuters Trust Principles.

 

 

 

WuXi Biologics sees no impact from addition to unverified list for U.S.
exports

(Reuters) - WuXi Biologics (2269.HK) said in a statement on Tuesday on
WeChat that two of its subsidiaries being put on the U.S. Commerce
Department's "unverified list" will have no impact on its business or
services to partners.

 

The company is pursuing interim measures to remove these subsidiaries from
the list, said the statement.

 

The U.S. Commerce Department on Monday said it had added 33 entities in the
People's Republic of China (PRC) to its unverified list for receiving U.S.
exports. The department said it was taking the step as it was unable to
establish how export items would be used by the entities.

 

The Thomson Reuters Trust Principles.

 

 

 

Malaysia's Supermax adopts new management policy on migrant workers

(Reuters) - Malaysian glove maker Supermax Corp Bhd (SUPM.KL) has rolled out
a new foreign worker management policy that expands its recruitment fee
remediation scope to include former workers directly hired and contracted,
it said on Tuesday.

 

The policy will cover workers who left the company before October 2019,
Supermax said in a statement filed with the stock exchange.

 

Supermax faces an import ban by the U.S. Customs since October due to
indications of forced labour at its operations, and last month Canada
terminated its sourcing contract with the company on similar allegations.

 

 

Workers at the company also sought a judicial review of the British
government's decision to approve the company in December as a supplier to
its National Health Service.

 

The manufacturer said the new initiatives and revised eligibility criteria
for remediation have been agreed upon after seeking views and advice from an
unnamed international consulting firm and through ongoing engagement with
migrant worker rights activist Andy Hall.

 

"Supermax has also engaged an international consulting firm to continue to
assess and advise on the payout to all our current and former workers as
well as to track and locate these workers that have returned to their home
countries," it said.

 

The company will set up a sinking fund governed by an advisory committee for
the remediation effort, which will be reviewed when depleted.

 

Supermax has so far paid out 25.67 million ringgit ($6.13 million) in
remediation covering past recruitment fees, ex-gratia and other related
costs to workers, it said.

 

($1=4.1845 ringgit)

 

The Thomson Reuters Trust Principles.

 

 

 

Dubai's SHUAA Capital files with SEC for potential SPAC listing in NY

(Reuters) - Dubai-listed investment bank SHUAA Capital said on Tuesday it
has filed a registration statement with the U.S. Securities and Exchange
Commission for the launch of a $100 million to $200 million blank-check
company that will be listed on the Nasdaq.

 

"SHUAA is now going through the final regulatory approvals following which a
decision will be made to IPO the SPAC (special purpose acquisition
company)," it said in a bourse statement.

 

 

A burgeoning dealmaking instrument, SPACs raise money to acquire a private
firm with the purpose of taking it public, allowing the target to list more
quickly on share markets than via traditional initial public offerings.

 

Abu Dhabi-headquartered Anghami, the Middle East's rival to Spotify
(SPOT.N), last week listed on the Nasdaq, after merging with blank-check
firm Vistas Media Acquisition Company.  

 

The Thomson Reuters Trust Principles.

 

 

 

Nigeria: Worsening Insecurity Threatens Nigeria's Economic Recovery - IMF

The International Monetary Fund, IMF, yesterday warned that worsening
violence and insecurity could derail Nigeria's recovery from economic
recession.

 

The IMF stated this in a report on its 2021 Article IV Consultation with
Nigeria, calling on the Federal Government, FG, to improve transparency of
COVID-19 emergency spendings, warning that low vaccination rates exposes
Nigeria to future pandemic waves and new variants, including the ongoing
Omicron variant.

 

Among other things the IMF reiterated its call for removal of fuel
subsidies, accompanied with compensatory measures for the poor and
transparent use of saved resources, as well as implementation of major
reforms in the fiscal, exchange rate, trade, and governance areas to lift
long-term, inclusive growth.

 

While noting that the FG's fiscal deficit worsened to 5.9 per cent of Gross
Domestic Product, GDP, in 2021, in spite of rise in crude oil price, the IMF
said there is need for urgent fiscal consolidation to create policy space
and reduce debt sustainability risks.

The IMF said: "Despite the recovery in oil prices, the general government
fiscal deficit is projected to widen in 2021 to 5.9 percent of GDP,
reflecting implicit fuel subsidies and higher security spending. Moreover,
the consolidated government revenue-to-GDP ratio at 7.5 percent remains
among the lowest in the world.

 

"A worsening of violence and insecurity could also derail the recovery. On
the upside, the non-oil sector could be stronger, benefitting from its
recent growth momentum, supportive credit policies, and higher production
from the new Dangote refinery.

 

"Nigeria's ratification of the African Continental Free Trade Agreement
could also yield a positive boost to the non-oil sector while oil production
could rebound, supported by the more generous terms of the Petroleum
Industry Act.

"Executive Directors agreed with the thrust of the staff appraisal. They
commended the authorities' proactive management of the COVID-19 pandemic and
its economic impacts. They noted, however, that the outlook remains subject
to significant risks, including from the pandemic trajectory, oil price
uncertainty, and security challenges. Looking ahead, they emphasized the
need for major reforms in the fiscal, exchange rate, trade, and governance
areas to lift long-term, inclusive growth.

 

"Directors highlighted the urgency of fiscal consolidation to create policy
space and reduce debt sustainability risks. In this regard, they called for
significant domestic revenue mobilization, including by further increasing
the value-added tax rate, improving tax compliance, and rationalizing tax
incentives. Directors also urged the removal of untargeted fuel subsidies,
with compensatory measures for the poor and transparent use of saved
resources. They stressed the importance of further strengthening social
safety nets.

 

"Directors welcomed the removal of the official exchange rate and
recommended further measures towards a unified and market-clearing exchange
rate to help strengthen Nigeria's external position, taking advantage of the
current favorable conditions. They noted that exchange rate reforms should
be accompanied by macroeconomic policies to contain inflation, structural
reforms to improve transparency and governance, and clear communications
regarding exchange rate policy.

 

"Directors considered it appropriate to maintain a supportive monetary
policy in the near term, with continued vigilance against inflation and
balance of payments risks. They encouraged the authorities to stand ready to
adjust the monetary stance if inflationary pressures increase. Directors
recommended strengthening the monetary operational framework over the medium
term--focusing on the primacy of price stability--and scaling back the
central bank's quasi-fiscal operations.

 

"Directors welcomed the resilience of the banking sector and the planned
expiration of pandemic-related support measures. They agreed that while the
newly launched eNaira could help foster financial inclusion and improve the
delivery of social assistance, close monitoring of associated risks will be
important.

 

"They also encouraged further efforts to address deficiencies in the AML/CFT
framework. Directors emphasised the need for bold reforms in the trade
regime and agricultural sector, as well as investments, to promote
diversification and job-rich growth and harness the gains from the African
Continental Free Trade Agreement. Improvement in transparency and governance
are also crucial for strengthening business confidence and public trust.
Directors called for stronger efforts to improve transparency of COVID-19
emergency spending."-Vanguard.

 

 

Nigeria: Again, IMF Urges Nigeria to Increase VAT, Remove Fuel Subsidy

The International Monetary Fund (IMF) has once more advised Nigeria's
federal government to increase Value Added Tax (VAT), while also offering
other fiscal measures that the country could adopt to stimulate economic
growth.

 

In addition, it reiterated its call for the removal of fuel subsidy in the
country.

 

The institution stated these in its 2021 Article IV Consultation with
Nigeria released yesterday where it also proffered monetary policies that
could also support sustainable growth.

 

However, the IMF commended the Nigeria's government over measures that were
taken that averted the devastating impact of the COVID-19.

 

It stated: "Executive Directors agreed with the thrust of the staff
appraisal. They commended the authorities' proactive management of the
COVID-19 pandemic and its economic impacts.

 

"They noted, however, that the outlook remains subject to significant risks,
including from the pandemic trajectory, oil price uncertainty, and security
challenges. Looking ahead, they emphasised the need for major reforms in the
fiscal, exchange rate, trade, and governance areas to lift long-term,
inclusive growth.

 

 

"Directors highlighted the urgency of fiscal consolidation to create policy
space and reduce debt sustainability risks. In this regard, they called for
significant domestic revenue mobilisation, including by further increasing
the value-added tax rate, improving tax compliance and rationalising tax
incentives."

 

Furthermore, it stated: "Directors also urged the removal of untargeted fuel
subsidies, with compensatory measures for the poor and transparent use of
saved resources. They stressed the importance of further strengthening
social safety nets."

 

It also recommended the removal of the official exchange rate and
recommended further measures towards a unified and market-clearing exchange
rate to help strengthen Nigeria's external position, taking advantage of the
current favorable conditions.

Also, the IMF noted that exchange rate reforms should be accompanied by
macroeconomic policies to contain inflation, structural reforms to improve
transparency and governance, and clear communications regarding exchange
rate policy.

 

"Directors considered it appropriate to maintain a supportive monetary
policy in the near term, with continued vigilance against inflation and
balance of payments risks.

 

"They encouraged the authorities to stand ready to adjust the monetary
stance if inflationary pressures increase. Directors recommended
strengthening the monetary operational framework over the medium term
focusing on the primacy of price stability and scaling back the central
bank's quasi-fiscal operations.

 

"Directors welcomed the resilience of the banking sector and the planned
expiration of pandemic-related support measures. They agreed that while the
newly launched eNaira could help foster financial inclusion and improve the
delivery of social assistance, close monitoring of associated risks will be
important."

They also encouraged further efforts to address deficiencies in the
Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT)
framework. The IMF Directors emphasised the need for bold reforms in the
trade regime and agricultural sector, as well as investments, to promote
diversification and job-rich growth and harness the gains from the African
Continental Free Trade Agreement.

 

"Directors called for stronger efforts to improve transparency of COVID-19
emergency spending. Directors noted that Nigeria's capacity to repay the
Fund is adequate. They encouraged addressing data gaps to allow timely and
clear assessments of reserve adequacy," it added.

 

The IMF noted that the authorities' proactive approach to contain COVID-19
infection rates and fatalities and the recent growth improvement,
socio-economic conditions remained a challenge, adding that the levels of
food insecurity have since risen and poverty rate was estimated to have
risen during the pandemic.

 

"The outlook faces balanced risks. On the downside, low vaccination rates
expose Nigeria to future pandemic waves and new variants, including the
ongoing Omicron variant, while higher debt service to government revenues
through higher US interest rates and or increased borrowing pose risks for
fiscal sustainability. A worsening of violence and insecurity could also
derail the recovery.

 

"On the upside, the non-oil sector could be stronger, benefitting from its
recent growth momentum, supportive credit policies, and higher production
from the new Dangote refinery. Nigeria's ratification of the African
Continental Free Trade Agreement could also yield a positive boost to the
non-oil sector while oil production could rebound, supported by the more
generous terms of the Petroleum Industry Act," it stated.-This Day.

 

 

Tanzania: Dse Up in January At Expenses of Bond Market

Dar es Salaam Stock Exchange's Tanzania Share Index (TSI), measuring the
depth of local share activities, has gone up 126.97 points pushed up mainly
by banking and industrial sectors in the first month of this year.

 

The TSI also is believed to fare positively well in January following yields
decrease of treasure bonds at primary market that left investors with
limited alternative than looking for equities.

 

The market data showed that the TSI closed at 3,692.15 points after
increasing by 0.88 per cent last week.

 

Zan Securities weekly Market Wrap-Ups showed that the equities market gained
remarkably in January pushed up by falling yields of bonds of long tenures
15, 20, 25 years instruments.

"With yields falling in the fixed income market the equity section of the
capital market has fared well in the first month of the year...," Zan report
said.

 

All Share Index (DSEI) also increased by 0.66 per cent to close at 1,935.29
points

 

"... Stocks such as CRDB bank were up by 26.78 per cent year to date, giving
signs of impressive activities for the rest of the year." Zan report showed.

 

Price movement for the week ending last Friday was recorded on Simba Cement
share appreciated by 10 per cent to 1,100/-, followed by CRDB up by 9.23 per
cent to close at 355/-per share, NICO up by 3.33 per cent to 310/-per share
and the self-listed DSE also gained 1.52 per cent to 1,340/- per share.

 

On the other hand, Jatu share price dropped by 5.13 per cent to end of week
at 370/- per share.

 

Total market capitalization was on the green note up by 0.66 per cent to
16.131tri/- and domestic market capitalization also went up by 0.88 per cent
to close at 9.761tri/-.

 

Vertex International Securities said in its weekly market review that the
equities market echoed their last week sentiment, after projecting
continuation of positive performance.

 

"We forecast [last] week's positive momentum to carry over next week as we
anticipate buyers to overwhelm sellers," Vertex said.

 

The DSE equity market continues with a positive and bullish performance this
week, posting a turnover of 4.69bn/-, which was 21 per cent higher than the
preceding week.

 

The two pre-arranged block trades dominated the market share last week, led
by CRDB controlling 63.22 per cent of all trades followed by TBL at 29.19
per cent.

 

Last Wednesday, the Bank of Tanzania re-opened a 13.5 per cent 15-year
Treasury bond that was first issued last June, offering 136bn/-to investors.

 

The bond was oversubscribed by 276 per cent to 376bn/- but the central bank
accepted 160bn/-, which so far the highest subscribed for 15 year Treasury
bond auction.

 

"The auction result seem to be consequential to low yields on the long end
of the curve...we see [108/60] to have a knock on effect for the respective
paper in the secondary market," Zan said.-Daily News.

 

 

 

Tanzania: Payment for Farm Inputs Suppliers in Due Course

Suppliers of subsidized farm inputs in the 2014/15 and 2015/16 seasons may
soon be paid as a verification of their claims is now in final stages, the
House heard on Monday.

 

The Deputy Minister for Agriculture Anthony Mavunde made the statement
yesterday acknowledging that the government recognizes the arrears and was
working to ensure that the suppliers are paid their dues.

 

According to him, the first verification was conducted and it was found that
there was fraud in claims and thus it was decided to start afresh the
verification exercise.

 

He was responding to a question asked by Jackson Kiswaga (Kalenga, CCM) who
wanted to know when will the government clear payment arrears to the
suppliers who spent much of their capital and time to serve farmers in the
constituency.

Kiswaga said that the payment arrears have taken a long time, something
which has affected economic development of the agents.

 

"Because the government decided to channel subsidized farming inputs such as
fertilizer and seeds through the private sector fertilizer supply chain,
made the distributors and agro-dealers to participate as they believed that
such programme would increase their sales and income but also enable
smallholder farmers access affordable farming inputs, but things weren't as
expected as the suppliers have not been paid for over five years now," he
explained.

 

The deputy minister said there no one who will be left behind as the
verification exercise is set to be completed soon and all eligible suppliers
will get their rights.-Daily News.

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2022

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

 

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


(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
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