Major International Business Headlines Brief::: 03 January 2022

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Major International Business Headlines Brief::: 03 January 2022 

 


 

 


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

 


 

 


ü  China: Evergrande suspends shares in Hong Kong as firm tries to raise
cash

ü  Covid: Cathay Pacific flights cut after Hong Kong clampdown

ü  Covid: Workplaces told to plan for absences of up to 25%

ü  Gas prices: MPs and peers urge PM to act on energy bills

ü  Tesla to recall 475,000 cars in the US

ü  Santander: Bank hands out £130m in Christmas blunder

ü  AT&T, Verizon CEOs reject U.S. request for 5G deployment delay

ü  Goldman Sachs asks U.S. employees to work from home until Jan. 18

ü  LG Energy Solution opens books for South Korea's largest IPO at up to
$10.8 bln

ü  Morgan Stanley to pay $60 mln to resolve data security lawsuit

ü  S.Korea factory activity quickens but output, export orders shrink - PMI

ü  OPEC+ report sees short-lived, mild impact from Omicron variant

ü  Oil starts new year on positive note, pandemic worries curb gains

ü  Ethiopia, Mali and Guinea Booted From U.S. Trade Pact Over Rights
Violations

ü  Nigeria: Hazard Allowance - Johesu, Ahpa Allege Short-Change of Health
Workers

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

China: Evergrande suspends shares in Hong Kong as firm tries to raise cash

Crisis-hit Chinese real estate giant Evergrande has suspended trade in its
shares on the Hong Kong as investors await news on its restructuring plan.

 

The statement to the stock exchange did not give a reason for the trading
halt.

 

Evergrande has more than $300bn (£222bn) of debts and is scrambling to raise
cash by selling assets and shares to repay suppliers and creditors.

 

Last week, the company dialled back plans to repay investors in its wealth
management products.

 

Evergrande said on Friday that each investor in its wealth management
product could expect to receive $1,257 each month as principal payment for
three months irrespective of when the investment matures.

 

The company had earlier not mentioned any amount and had agreed to repay 10%
of the investment by the end of the month when the product matures.

 

Evergrande said in a statement posted on the wealth unit's website that the
situation was not "ideal" and that it would "actively raise funds", and
update the repayment plan in late March, without giving further details.

 

The announcement was seen as highlighting the deepening cash squeeze at the
struggling property developer.

 

Last week, Evergrande did not make some interest payments on its offshore
bonds.

 

The company's $19bn in international bonds were deemed to be in default by
rating agencies after it missed a payment deadline last month.

 

Evergrande suspended its shares in early October, saying the move was ahead
of "an announcement containing inside information about a major
transaction".

 

There were reports at the time that rival real estate firm Hopson
Development was set to buy a 51% stake in its property services unit.

 

However, later that month Evergrande said the $2.6bn (£1.9bn) deal had
fallen through as they were unable to agree on the terms of a deal.

 

For months, many of the details of Evergrande's debt crisis have been
clouded in uncertainty.

 

But some experts believe that this is no accident - it is exactly how
Beijing wants it to be.

 

When the Chinese Communist Party changed its rules to limit how much money
the country's property developers could borrow, they knew that it would
cause major problems for Evergrande and other heavily indebted real estate
firms.

 

China watchers say the government wanted to send a clear message that what
they consider to be the reckless expansion of the sector could not continue.

 

Authorities have also signalled that they have no intention of bailing out
Evergrande, and its billionaire founder, because it would go against
President Xi Jinping's "Common Prosperity" policies, which aim to distribute
wealth more fairly throughout society.

 

However, Beijing is also, understandably, keen to ensure that Evergrande's
troubles do not become China's Lehman moment, which could affect the rest of
the world's second largest economy and beyond.

 

So, the slow restructuring of Evergrande continues quietly behind closed
doors. And, just like today's trading halt announcement, no reasons are
given.-BBC

 

 

Covid: Cathay Pacific flights cut after Hong Kong clampdown

Cathay Pacific has announced immediate major cuts to its flight schedule,
including cancelling passenger and cargo services to and from Hong Kong.

 

The airline did not provide details on how many flights would be grounded
but it said it would operate a skeleton passenger schedule in January.

 

It comes after Hong Kong announced tighter Covid-19 quarantine rules for air
cargo crew earlier this week.

 

The move was aimed at tackling the threat of the Omicron Covid variant.

 

Cathay pilots have previously told the BBC the restrictions have affected
their mental health and personal lives.

 

Late on Thursday Cathay Pacific said it was tentatively planning to cancel
some passenger flights in and out of the Asian financial hub in the first
three months of the new year.

 

 

It also said that long haul freight and cargo-only passenger flights
including from Europe, Riyadh and Dubai would be suspended until 6 January.

 

Cathay Pacific had already announced last week that it would cancel some
flights in January.

 

The latest decision is likely to put further strain on the already
struggling global supply chain.

 

Like much of the rest of the global aviation industry, Cathay has been hit
hard by the pandemic. It posted a net loss of $2.8bn (£2bn) in 2020 and lost
$972m in the first half of 2021.

 

Airlines around the world have cancelled thousands of flights in the
Christmas period alone due to the coronavirus.

 

In line with mainland China, Hong Kong has a zero-Covid policy as it aims to
persuade Beijing to allow cross-border travel.

 

As a result the city has some of strictest quarantine rules in the world,
raising concerns that it may be left behind as other major financial centres
open up as they adopt approaches that see them live with the coronavirus
rather than remaining closed off to keep case numbers low.

 

Hong Kong is one of the world's biggest aviation hubs but also has some of
the strictest coronavirus regulations in the world. Two pilots with Cathay
Pacific recently told the BBC that the rules have seriously affected their
mental health and putting a strain on their personal lives.

 

"You're just in a perpetual state of quarantine," one pilot, who has spent
almost 150 days in isolation this year alone, said.

 

Though Hong Kong has recorded barely any local coronavirus cases in recent
months, the city has imposed an extensive testing and quarantine regime, in
line with mainland China's zero Covid policy.-BBC

 

 

 

Covid: Workplaces told to plan for absences of up to 25%

Ministers have been tasked with developing "robust contingency plans" for
workplace absences, as the government warned rising cases could see up to a
quarter of staff off work.

 

Public sector leaders have been asked to prepare for "worst case scenarios"
of 10%, 20% and 25% absence rates, the Cabinet Office said.

 

The UK has seen record numbers of daily cases over the festive period.

 

Transport, the NHS and schools have already seen the effect of absences.

 

Rising case numbers have led to large numbers self-isolating and being
unable to go to work. This has particularly affected industries where staff
are unable to work from home.

 

Cabinet Office Minister Steve Barclay is chairing regular meetings with
ministers to assess how the spread of the Omicron variant is affecting
workforces and supply chains, the Cabinet Office said.

 

The prime minister had asked ministers working with their respective sectors
to test preparations and contingency plans to limit disruption, it
explained.

 

Mr Barclay said the highly transmissible Omicron variant meant businesses
and public services "will face disruption in the coming weeks, particularly
from higher than normal staff absence".

 

However, his department said that so far disruption caused by Omicron has
been controlled in "most parts of the public sector".

 

People who test positive for Covid must self-isolate for at least seven days
in England, Wales and Northern Ireland. Two negative lateral flow results,
24-hours apart, are required to end self-isolation - the first no earlier
than day six.

 

In Scotland, positive cases must isolate for the full 10 days.

 

Unvaccinated contacts of positive cases must also isolate for 10 days in all
parts of the UK.

 

Some have called for a US-style self-isolation system to be introduced,
where people only have to quarantine for five days, but the UK Health
Security Agency (UKHSA) said doing so would be counterproductive and could
actually worsen staff shortages if it led to more people being infected.

 

Explaining its reasoning in a blog post, it said the two systems were not
like-for-like. In the UK, the self-isolation "clock" begins when the person
experiences symptoms or receives a positive test - whichever is first. But
in the US, self-isolation begins only after a positive test - which may be
some days after symptoms first appear.

 

On day six, the UKHSA says its modelling suggests 10-30% of people will
still be infectious, depending on how quickly they get their test result
after developing symptoms.

 

It says ending self-isolation after seven days with two negative lateral
flow tests gives a similar level of protection to self-isolating for 10
days, when 5% of people will still be infectious.

 

Ian Wilson, owner and director of Bellcare, a Cumbria-based firm that
provides in-home help for the elderly and disabled, is concerned that those
who need care aren't going to get it - simply because there aren't enough
people to provide it.

 

"The amount of people requiring care in the first place means that you're
generally run off your feet," Mr Wilson told the BBC. "As soon as you start
losing staff [because of Omicron], it gets really, really awkward."

 

While Bellcare has been able to bring forward an increase in the National
Living Wage from April to now, thanks to a government grant, "if the people
don't come forward it is really difficult," said Mr Wilson.

 

Mr Wilson's firm employs around 120 people and could easily find hours for
an additional 40 or 50 carers.

 

"We've got the Brexit thing as well where we had overseas workers," said Mr
Wilson. "We can apply for licences to recruit overseas workers but that is a
lengthy and quite costly process to be honest so it is not going to solve
anything next week."

 

Mr Wilson said: "I don't know what the government plans are for
contingencies. We can only work with what we've got and those people that
we've got can only work so many hours a day, so yes, it is going to be
difficult."

 

The situation will be kept under review, the the UKHSA says, but it believes
current rules are the "optimal approach at present".

 

In December, the education secretary urged retired teachers to return to
classrooms to help with Covid-related staff shortages in the new year.

 

Some schools had to close early or move to online learning before the end of
last term because of staff absences.

 

And several train operators have had to reduce services because of staff
absences.

 

Rising cases are also affecting the NHS, with 24,632 staff at hospital
trusts ill with coronavirus or self-isolating on 26 December, up 31% on the
previous week and nearly double the figure at the start of the month,
according to NHS England.

 

Labour's deputy leader Angela Rayner said Boris Johnson should have told
ministers to start planning for workplace absences weeks ago.

 

"Boris Johnson's lack of leadership means his government has dithered and
delayed, leaving contingency planning to the very last moment," she said.

 

"With record Covid infection numbers, the prime minister must immediately
get a grip on workforce pressures, keep essential services moving, keep
schools open and keep people safe."

 

Businesses say this proposal from government is welcome, but they would like
to see more detail of what contingency planning for mass staff absences
might mean in practice.

 

Bosses also question where they will draw more staff from if their teams
become ill.

 

Russell Norman had to close his popular restaurant Brutto in London prior to
the New Year after his workforce plummeted from 24 people to just five in
the week before Christmas, as staff fell ill with Omicron.

 

He says that since Brexit, "there just are not pools of enthusiastic people
waiting in the wings who are available for restaurant work".

 

There's another worry too.

 

Others in the hospitality sector say that many of their staff are on zero
hours contracts and, as a result of falling consumer confidence and venues
deciding to close in the last three weeks, have seen their hours cut
dramatically.

 

With symptoms mild, industry leaders say they believe some will continue to
work, even if positive.

 

England reported 162,572 new cases on Saturday - a record number for the
fifth day in a row - and Covid hospital admissions are at their highest
level since January 2021.

 

Scotland, Wales and Northern Ireland did not report figures on Saturday.

 

England is currently under Plan B restrictions, which includes mandatory
masks in most indoor public places, Covid passes for nightclubs and other
large venues and guidance to work from home if possible.

 

The measures are set to expire six weeks after implementation - 26 January,
with a review after three weeks, which is expected on or close to 4 January.

 

Other parts of the UK have already introduced tougher restrictions for
hospitality venues.

 

Health Secretary Sajid Javid has said any additional restrictions in England
"must be an absolute last resort".-BBC

 

 

 

Gas prices: MPs and peers urge PM to act on energy bills

Twenty Conservative MPs and peers have called on the prime minister to
tackle the spiralling cost of living.

 

Five ex-ministers are among those who have written to the Sunday Telegraph
arguing for a cut in environmental levies and the removal of energy taxes.

 

Their call follows big increases in wholesale gas prices. Experts say
average bills could hit £2,000 in 2022.

 

The government says it is meeting suppliers and the regulator regularly to
work out how to help consumers.

 

Health minister Edward Argar told Times Radio there were a range of measures
to help those who "feel the squeeze with particular house bills", adding
that the economy was "bouncing back".

 

The letter to the Telegraph has been organised by the Net Zero Scrutiny
Group of Conservatives, which keeps an eye on the potential consequences of
the government's environmental commitments.

 

The group's chairman Craig Mackinlay is one of the letter's signatories,
along with former Work and Pensions Secretary Esther McVey and senior MPs
Robert Halfon and Steve Baker.

 

"We hardly need to point out that high energy prices, whether for domestic
heating or for domestic transport, are felt most painfully by the lowest
paid," the letter states.

 

It argues that by scrapping the 5% VAT rate on energy bills and suspending
environmental levies which fund renewable energy schemes, the average
household could save £200 on their energy bill.

 

Cabinet Office minister Stephen Barclay said: "It is a matter for the
Chancellor in terms of tax policy but the key issue for us all is to get the
economy re-opened, to get businesses firing up again."

 

But Mr Halfon said he had "huge worries" about the rising energy costs for
people across the country.

 

With the energy price cap going up in the spring, he said the government
should look at other measures, including suspending green levies which he
said were "actually 25% of everybody's energy bill".

 

He added that he was not suggesting to "get rid of them forever" but to
pause them at a time when people could really struggle.

 

Labour has also called for the lifting of VAT on fuel bills for the winter
to help households, while Ovo Energy firm boss Stephen Fitzpatrick last week
suggested that some "environmental social policy costs" should be removed by
the government.

 

Other suppliers including Good Energy, EDF and trade body Energy UK have
called for government intervention, after the cost of gas in wholesale
markets rose by more than 500% in less than a year.

 

The charity National Energy Action (NEA) has warned that a record six
million UK households will be in fuel poverty when the next increase in the
energy price cap comes into force in April.

 

Prior to the most recent rise in the price cap in October, around four
million homes in the UK were classed as being in fuel poverty. That number
increased by 500,000 after prices rose and NEA estimates it will increase
again by 1.5 million this year.

 

'Year of squeeze'

More than 20 energy suppliers have gone out of business since the start of
September, with their customers shifted to new providers.

 

But many will find themselves on a different - and potentially more
expensive - tariff than their previous energy deal.

 

Last week the Resolution Foundation think tank warned that millions of UK
families face a "year of squeeze" in 2022 thanks to rising energy bills,
stagnant wages and tax rises. The Bank of England has said it expects
inflation to reach 6% by the spring.

 

The Resolution Foundation says that an increase in National Insurance
contributions from April, along with an expected rise in energy bills in the
same month could amount to a £1,200 hit to household finances.

 

And the foundation warned that poorer families will bear the brunt of these
rises as they spend a greater proportion of their income on electricity and
gas.

 

The government says it has taken steps to help, including reducing the
Universal Credit taper, providing cold weather payments and freezing alcohol
and fuel duty.-BBC

 

 

Tesla to recall 475,000 cars in the US

Tesla is to recall more than 475,000 cars in the US, according to documents
filed with the US safety regulator.

 

The electric vehicle firm announced it was recalling 356,309 vehicles
because of potential rear-view camera issues affecting 2017-2020 Model 3
Teslas.

 

A further 119,009 Model S vehicles will also be recalled because of
potential problems with the front trunk, or boot.

 

The total recall figure is almost equivalent to the 500,000 cars Tesla
delivered last year, Reuters reports.

 

The BBC has approached Tesla for comment.

 

A safety report, submitted this month, estimates that around 1% of recalled
Model 3s may have a defective rear-view camera.

 

 

Over time "repeated opening and closing of the trunk lid" may cause
excessive wear to a cable that provides the rear-view camera feed, says a
Safety Recall report submitted by Tesla to the National Highway Traffic
Safety Administration (NHTSA) in the US on the 21 December.

 

If the wear causes the core of the cable to separate "the rear-view camera
feed is not visible on the centre display", the report notes.

 

The loss of the rear-view camera display may "increase the risk of
collision", it adds.

 

The Model S recall involves vehicles manufactured between 2014-2021, some of
which may have a problem with a "secondary latch" on the front trunk, or
boot.

 

In another Safety Recall report, also filed on 21 December, Tesla notes the
fault could mean, if the primary latch is inadvertently released, the front
trunk "may open without warning and obstruct the driver's visibility,
increasing the risk of a crash".

 

Around 14% of recalled Model S's may have the defect, the report notes.

 

In both cases, the reports state that "Tesla is not aware of any crashes,
injuries, or deaths" relating to the potential faults.

 

Passenger play

The latest recall is not the first safety issue to have prompted action from
the electric vehicle firm.

 

Last week Tesla agreed to make changes to its Passenger Play feature, which
allows games to be played on its touchscreen while the car is in motion.

 

It took action after an investigation was launched by the NHTSA.

 

The feature will now be locked and unusable while the car is moving.-BBC

 

 

Santander: Bank hands out £130m in Christmas blunder

Tens of thousands of people awoke on Christmas morning to a surprise from an
unexpected benefactor - Santander.

 

The bank mistakenly deposited £130m into 75,000 accounts on 25 December.

 

Santander's staff are now rushing to claw back the money, although the job
is being made more difficult because much of it was deposited in accounts at
rival banks, according to The Times.

 

The error occurred when payments from 2,000 business accounts were made
twice.

 

"We're sorry that due to a technical issue, some payments from our corporate
clients were incorrectly duplicated on the recipients' accounts," the bank
said in a statement.

 

"None of our clients were at any point left out of pocket as a result and we
will be working hard with many banks across the UK to recover the duplicated
transactions over the coming days."

 

It said the mistake may have meant that some people were, in effect, paid
twice from their employer's account, although the second payment was funded
by Santander.

 

Ruined Christmas

One payroll manager, who asked not to be named, told the BBC the blunder had
cast a shadow over Christmas and Boxing Day.

 

"It ruined my holiday period because I thought I'd paid out hundreds of
thousands in error - I thought I had done something wrong," they told the
BBC.

 

"I thought it was just me and that I was going to get in trouble at work."

 

They said that Santander had not given any information about how firms
should explain the second payment to staff or about how it should be repaid.

 

"It's just a complete shambles," the payroll manager said. "How they are
going to recover it, I just don't know."

 

The bank stressed that it had already begun speaking to the rival banks -
which The Times said included Barclays, HSBC, NatWest, Co-operative Bank and
Virgin Money.

 

Santander said those banks would "look to recover the money from their
customers' accounts."

 

However, it was not clear how the banks would respond if their customers had
already spent the money, meaning returning it would push them into
overdraft.

 

Santander indicated that it may contact people directly to get the money
back.-BBC

 

 

 

AT&T, Verizon CEOs reject U.S. request for 5G deployment delay

(Reuters) - The chief executives of AT&T (T.N) and Verizon Communications
(VZ.N) rejected a request to delay the planned Jan. 5 introduction of new 5G
wireless service over aviation safety concerns but offered to temporarily
adopt new safeguards.

 

U.S. Transportation Secretary Pete Buttigieg and Federal Aviation
Administration chief Steve Dickson had asked AT&T CEO John Stankey and
Verizon CEO Hans Vestberg late Friday for a commercial deployment delay of
no more than two weeks.

 

The wireless companies in a joint letter on Sunday said they would not
deploy 5G around airports for six months but rejected any broader limitation
on using C-Band spectrum. They said the Transportation Department proposal
would be "an irresponsible abdication of the operating control required to
deploy world-class and globally competitive communications networks."

 

The aviation industry and FAA have raised concerns about potential
interference of 5G with sensitive aircraft electronics like radio altimeters
that could disrupt flights.

 

The exclusion zone AT&T and Verizon propose is currently in use in France,
the carriers said, "with slight adaption" reflecting "modest technical
differences in how C-band is being deployed."

 

"The laws of physics are the same in the United States and France," the CEOs
wrote. "If U.S. airlines are permitted to operate flights every day in
France, then the same operating conditions should allow them to do so in the
United States."

 

The FAA said in a statement on Sunday that it was "reviewing the latest
letter from the wireless companies on how to mitigate interference from 5G
C-band transmissions. U.S. aviation safety standards will guide our next
actions."

 

FAA officials said France uses spectrum for 5G that sits further away from
spectrum used for radio altimeters and uses lower power levels for 5G than
those authorized in the United States.

 

Verizon said it will initially only use spectrum in the same range as used
in France, adding it will be a couple of years before it uses additional
spectrum. The larger U.S. exclusion zone around U.S. airports is "to make up
for the slight difference in power levels between the two nations," Verizon
added.

 

Sara Nelson, president of the Association of Flight Attendants-CWA (AFA),
representing 50,000 workers at 17 airlines, on Sunday wrote on Twitter that
pilots, airlines, manufacturers and others "have NO incentive to delay 5G,
other than SAFETY. What do they think 
 we’re raising these issues over the
holidays for, kicks?"

 

The Air Line Pilots Association also backed the delay.

 

Government and industry officials said the exclusion zones proposed by the
wireless carriers is not as large as what has been sought by the FAA.

 

The FAA and Buttigieg on Friday proposed identifying priority airports
"where a buffer zone would permit aviation operations to continue safely
while the FAA completes its assessments of the interference potential."

 

The wireless carriers, which won the C-Band spectrum in an $80 billion
government auction, previously agreed to precautionary measures for six
months to limit interference but say the upgrades are essential to compete
with other countries like China and to enable remote working.

 

Trade group Airlines for America, representing American Airlines (AAL.O),
FedEx (FDX.N) and other carriers, on Thursday asked the Federal
Communications Commission (FCC) to halt deployment around many airports,
warning thousands of flights could be disrupted daily.

 

The airline group has said it may go to court Monday if the FCC does not
act. The group urged the FCC and the telecom industry to work with the FAA
and the aviation industry to "enable the rollout of 5G technology while
prioritizing safety and avoiding any disruption to the aviation system."

 

An FCC spokesperson said Sunday the agency is "optimistic that by working
together we can both advance the wireless economy and ensure aviation
safety."

 

Wireless industry group CTIA said 5G is safe and spectrum is being used in
about 40 other countries.

 

The Thomson Reuters Trust Principles.

 

 

Goldman Sachs asks U.S. employees to work from home until Jan. 18

(Reuters) - Goldman Sachs Group Inc (GS.N) is encouraging its eligible U.S.
staff to work from home until Jan. 18, a company spokesperson said, as it
followed a number of its rivals in altering return-to-office plans as the
Omicron variant spreads.

 

Goldman's offices will continue to remain open with previously announced
COVID-19 safety protocols, the spokesperson added. Those measures are: a
vaccine requirement, booster requirement for all eligible populations
effective Feb. 1, bi-weekly testing effective Jan. 10, and mandatory masks.

 

Financial firms have been grappling with when they can realistically get
back to business-as-usual, and how to communicate to staff and retain
workers amid the uncertainty. A number of other banks had asked staff to
work remotely due to the latest surge in cases. read more

 

For a FACTBOX on the banks' latest plans click here: read more

 

Goldman was among the Wall Street banks that had pushed hardest to bring
staff back into offices, and had been the last holdout trying to keep most
staff working in the offices through the Omicron variant's surge.

 

JPMorgan Chase & Co (JPM.N), which was also among those pushing staff to
work in its offices, told workers last week they could from home for the
first two weeks of January. However, JPMorgan said in the memo to employees
that all staff are expected to return to offices no later than Feb. 1.

 

Citigroup (C.N) has also asked its employees to work from home during the
first few weeks of 2022, a spokesperson confirmed late last month.

 

The Thomson Reuters Trust Principles.

 

 

LG Energy Solution opens books for South Korea's largest IPO at up to $10.8
bln

(Reuters) - Korean battery maker LG Energy Solution has opened the books to
investors to raise up to $10.8 billion in the country's largest initial
public offering (IPO), according to a term sheet seen by Reuters.

 

The shares will be sold in a price range of 257,000 won to 300,000 won
($216.19-$252.36) apiece to raise between $9.2 billion and $10.8 billion,
the term sheet showed.

 

The IPO will beat the previous South Korean record held by Samsung Life
Insurance's 4.9 trillion won ($4.12 billion) offering in 2010.

 

LG Energy Solution (LGES) will be valued at $51 billion to $59 billion.

 

The company said on Monday it was continuing to "execute remaining processes
to launch a successful IPO".

 

Cash raised will be mostly used to expand the company's current production
facilities and debt repayment, according to the term sheet.

 

LGES is LG Chem Ltd's (051910.KS)wholly owned battery subsidiary and
supplies Tesla Inc(TSLA.O), General Motor Co (GM.N)and Hyundai Motor Co
(005380.KS), among others.

 

The company will sell 34 million primary shares and its parent company will
sell 8.5 million secondary shares in the IPO.

 

Demand from investors is expected to be high with the pricing, due to be
finalised on Jan. 14, already likely to be at the top of the range,
according to sources Reuters spoke to last month.

 

LGES will start trading on the KOSPI on Jan. 27.

 

Institutional shareholders will be allotted 55% to 75% of the shares on
offer, depending on the retail subscription and employee share ownership
plans take up rates, the term sheet said.

 

RED HOT

 

The IPO extends the red hot run of Korea's deals market over the past year.

 

There was $17.7 billion raised in 2021 IPOs, easily eclipsing the previous
record of $7.6 billion in 2020.

 

A roadshow between management and investors will start Monday and run until
Jan. 11, the day before books close, the term sheet showed.

 

Investor appetite to buy stock is expected to be closely tied to the booming
demand for electric vehicles in major markets around the world.

 

Global EV sales, estimated at 2.5 million vehicles in 2020, are forecast to
grow more than 12-fold to 31.1 million by 2030 and account for nearly a
third of new vehicle sales, according to consulting firm Deloitte.

 

($1 = 1,188.7400 won)

 

The Thomson Reuters Trust Principles.

 

 

Morgan Stanley to pay $60 mln to resolve data security lawsuit

(Reuters) - Morgan Stanley (MS.N) agreed to pay $60 million to settle a
lawsuit by customers who said the Wall Street bank exposed their personal
data when it twice failed to properly retire some of its older information
technology.

 

A preliminary settlement of the proposed class action on behalf of about 15
million customers was filed on Friday night in Manhattan federal court, and
requires approval by U.S. District Judge Analisa Torres.

 

Customers would receive at least two years of fraud insurance coverage, and
each can apply for reimbursement of up to $10,000 in out-of-pocket losses.

 

Morgan Stanley denied wrongdoing in agreeing to settle, and has made
"substantial" upgrades to its data security practices, according to
settlement papers.

 

Customers accused Morgan Stanley of having in 2016 failed to decommission
two wealth management data centers before the unencrypted equipment, which
still contained customer data, was resold to unauthorized third parties.

 

They also said some older servers containing customer data went missing
after Morgan Stanley transferred them in 2019 to an outside vendor. Morgan
Stanley later recovered the servers, court papers show.

 

Morgan Stanley did not immediately respond to requests for comment outside
business hours.

 

In October 2020, Morgan Stanley agreed to pay a $60 million civil fine to
resolve U.S. Office of the Comptroller of the Currency accusations
concerning the incidents, including that its information security practices
were unsafe or unsound.

 

The case is In re Morgan Stanley Data Security Litigation, U.S. District
Court, Southern District of New York, No. 20-05914.

 

The Thomson Reuters Trust Principles.

 

 

S.Korea factory activity quickens but output, export orders shrink - PMI

(Reuters) - Activity in South Korea's factories expanded at the fastest pace
in three months in December but the economy struggled to gather momentum as
rising global coronavirus cases and continued supply constraint weighed on
production and overseas demand.

 

The IHS Markit purchasing managers' index (PMI) for the final month of the
year rose to 51.9 from 50.9 in November, remaining above the 50 threshold
that indicates expansion in activity for a 15th consecutive month.

 

The survey on Monday showed output continued to shrink on supply chain
constraints, with firms facing semiconductor chip shortages and weak demand,
though the pace was the mildest in three months.

 

New orders - which have the largest weighting in the PMI - grew at a faster
pace as domestic demand conditions improved, offsetting sluggish overseas
sales.

 

"Survey data showed new export orders falling for the first time since
September 2020, which firms attributed to rising COVID-19 cases globally,
congestion at ports and a lack of available shipping containers," said Joe
Hayes, senior economist at IHS Markit.

 

Manufacturers continued to face acute cost pressures, notably in oil,
natural gas, ores and electronics prices, which led them to pass higher
charges on to clients.

 

Firms, however, remained optimistic over the coming year that supply chain
pressure would ease as global economic conditions improve and on hopes for
new product developments.

 

That led to a pick up in hiring, following two straight months of job
shedding, with the rate of growth accelerating to a six-month high.

 

Still, economist say supply shortages need to show significant improvement
for manufacturing to make a solid turnaround.

 

"Given South Korea's prominence in the automotive and electronics
industries, substantial improvements in global supply chains will be
required before we see a meaningful acceleration in manufacturing growth,"
Hayes said.

 

The Thomson Reuters Trust Principles.

 

 

 

OPEC+ report sees short-lived, mild impact from Omicron variant

(Reuters) - OPEC+ expects the impact on the oil market from the Omicron
coronavirus variant to be mild and temporary, keeping the door open for a
further increase in output, a technical report seen by Reuters showed on
Sunday.

 

"The impact of the new Omicron variant is expected to be mild and
short-lived, as the world becomes better equipped to manage COVID-19 and its
related challenges," the Joint Technical Committee (JTC) report said.

 

"This is in addition to a steady economic outlook in both the advanced and
emerging economies," it added.

 

The Organization of the Petroleum Exporting Countries will meet on Monday at
1300 GMT to discuss the appointment of a new secretary general to succeed
Nigeria's Mohammad Barkindo, according to a letter seen by Reuters.

 

This will be followed by a meeting of OPEC and allies led by Russia, known
as OPEC+, on Tuesday, to debate whether to go ahead with raising output
targets by 400,000 barrels per day (bpd) in February.

 

The JTC will also meet on Monday at 1000 GMT to discuss market fundamentals.

 

In the report's base scenario, OECD commercial oil stocks in 2022 will
remain below the 2015-2019 average in the first three quarters, and rising
above that average by 24 million barrels in the fourth quarter.

 

The scenario assumes 40 million barrels are released from strategic
petroleum reserves in the first half of the year, and that 13.3 million
barrels are returned to the U.S. strategic reserve in the third quarter.

 

The report kept forecasts for the growth in oil demand in 2021 and 2022
unchanged at 5.7 million bpd and 4.2 million bpd respectively.

 

The Thomson Reuters Trust Principles.

 

 

Oil starts new year on positive note, pandemic worries curb gains

(Reuters) - Oil prices firmed on Monday as the market kicked off 2022 on a
positive note with suppliers in focus ahead of Tuesday's OPEC+ meeting,
although surging COVID-19 cases continued to dent demand sentiment.

 

Brent crude added 59 cents, or 0.76%, to $78.37 a barrel, as of 0440 GMT.
U.S. West Texas Intermediate crude futures gained 63 cents, or 0.84%, to
$75.84 a barrel.

 

"Tightened supplies from Libya ahead of an Organization of the Petroleum
Exporting Countries and allies (OPEC+) meeting kept the market sentiments
positive," said Abhishek Chauhan, head of commodities at Swastika Investmart
Ltd.

 

Libya's state oil firm said on Saturday the country's oil output would be
reduced by 200,000 barrels per day for a week due to maintenance on a main
pipeline between the Samah and Dahra fields.

 

Meanwhile, OPEC+ will probably stick to their plan to add 400,000 barrels
per day of supply in February, four sources said. read more

 

Last year, oil prices rose around 50%, spurred by the global economic
recovery from the COVID-19 pandemic slump and producer restraint, even as
infections reached record highs worldwide. read more

 

U.S. health experts warned Americans to prepare for severe disruptions in
coming weeks, with infection rates likely to worsen amid increased holiday
travel, New Year celebrations and school reopenings following winter breaks.

 

Oil analysts have lowered their price forecasts for 2022 as the Omicron
coronavirus variant poses headwinds to recovering fuel demand and risks a
supply glut as producers pump more oil, a Reuters poll showed on Friday.
read more

 

A survey of 35 economists and analysts forecast Brent crude would average
$73.57 a barrel in 2022, about 2% lower than the $75.33 consensus in
November. It is the first reduction in the 2022 price forecast since the
August poll.

 

U.S. crude is projected to average $71.38 per barrel in 2022, versus the
previous month's $73.31 consensus.

 

U.S. energy firms added oil and natural gas rigs for a record 17 months in a
row as higher prices lured some drillers back to the wellpad after last
year's coronavirus-driven decline in demand. read more

 

U.S. crude oil production rose to 11.47 million barrels per day in October,
up 6% from a month earlier, as output soared in the Gulf of Mexico as the
region recovered from hurricanes, according to a monthly report issued on
Thursday by the Energy Information Administration.

 

The Thomson Reuters Trust Principles.

 

 

Ethiopia, Mali and Guinea Booted From U.S. Trade Pact Over Rights Violations

The US removed Ethiopia, Mali and Guinea from the African Growth and
Opportunity Act due to rights violations and military coups.

 

The US removed access for Ethiopia, Mali and Guinea from a duty-free trade
program on Saturday, due to their recent alleged human rights violations and
recent coups.

 

US President Joe Biden had threatened to remove Ethiopia from the African
Growth and Opportunity Act (AGOA) in November, due to human rights
violations in the Tigray region. Mali and Guinea have been targeted due to
recent coups.

 

US 'deeply concerned' about these governments

"The Biden-Harris Administration is deeply concerned by the unconstitutional
change in governments in both Guinea and Mali, and by the gross violations
of internationally recognized human rights being perpetrated by the
Government of Ethiopia and other parties amid the widening conflict in
northern Ethiopia," the US Trade Representative (USTR) said in a statement.

 

The statement also added that the US was "deeply concerned by the
unconstitutional change in governments" in Mali and Guinea.

 

In mid-2021, armed coups overthrew the governments in both Mali and Guinea.

 

The suspension of trade benefits could threaten Ethiopia's textile industry,
which supplies to global fashion brands. The country's economy is already
struggling due to the pandemic and Tigray conflict.

 

The Ethiopian trade ministry said this move would reverse economic gains,
and negatively impact women and children, adding that it was "extremely
disappointed" by the action.

 

The AGOA program was started by former US president Bill Clinton, to
facilitate trade between the US and African nations. Some changes were made
by the US Congress in 2015, and the program was extended to 2025. In 2020,
38 countries were eligible for AGOA, according to the USTR website.

 

tg/aw (AFP, Reuters)

 

 

Nigeria: Hazard Allowance - Johesu, Ahpa Allege Short-Change of Health
Workers

Health workers under the auspices of the Joint Health Sector Unions,
JOHESU/the Assembly of Healthcare Professionals Associations, AHPA, have
alleged short-changed in the payment of the agreed Hazard Allowance to their
members, calling on the Federal Government to immediately remedy the lapses.

 

Meanwhile, JOHESU has commended the Federal Government for the timely
intervention of releasing the circular for the payment of the hazard
allowance for health workers even as it faulted the circular for containing
what it described "as a restrictive clause" which excluded certain
categories of health workers from being paid the hazard allowance.

 

Disclosing these in a press statement signed by the Acting National
Secretary, Com. Matthew Ajurotu, the Unions hinged their position on the
fact that nothing has changed in the condition precedent to the employment
of the various cadres of health workers in the last 12 years to warrant
discrimination in the payment of their hazard allowances.

According to Ajurotu, based on earlier negotiations, the minimum benchmark
and demand of JOHESU was that all health workers would earn the same hazard
allowances based on their categorisation as junior and senior staff.

 

"This was the basis of the Federal Government's original proposal of N12,500
and N25,000 to junior and senior cadres in the health sector.

 

"The JOHESU/AHPA team had canvassed that some players in other less critical
sectors already earned a minimum of N30,000 as hazard allowance that
compelled government to consider an increase from N12,500 and N25,000
respectively to N16,000 and N32,000 for health workers in view of the more
sensitive nature of the health sector.

 

"Our members were short-changed as our philosophy for equity and equality
which were the watchwords in the payment of hazard allowances for over
twelve years were negated in the computation of the final figure reflected
by the National Salaries, Income and Wages Commission (NSIWC) circular
released a few days ago."

Consequently, JOHESU/APHA stated that it strongly protested the divisive and
discriminatory lexicons of 'Clinical and Non-Clinical' staff which was
introduced in the new NSIWC circular because none of the staff who are on
the Consolidated Health Salary Structure (CONHESS) and the Consolidated
Medical Salary Structure (CONMESS) was designed as clinical and non-clinical
in their original employment terms.

 

"While reminding the Federal Government that the 1999 Constitution prohibits
discrimination against citizens of the Federal Republic of Nigeria, "which
leaves us with no choice than to insist on a maintenance of the credible
status-quo which places premium on all stakeholders on the two salary scales
as Veritable Health Workers in Nigeria.," he stated.

 

In a related development, JOHESU has commended the Federal Government for
the timely intervention of releasing the circular for the payment of the
hazard allowance for health workers even as it faulted the circular for
containing what it described "as a restrictive clause" which excluded
certain categories of health workers from being paid the hazard allowance.

"These workers include, Environmental Health Officers, Scientific Officers,
Social Health Workers', Animal Health Workers' Water/Sanitation, Port
Health, etc, in preventive & educational/research health services
institutions & departments/cadres that are not practiced in typical hospital
setting but are part of the three pronge; Primary, Secondary and
Teaching/Rehabilitative or Preventive, Curative & Teaching/Rehabilitative
health sectors that together, strive to ensure Universal Health
Coverage(UHC)."

 

The statement reads, "My observation is: the restrictive clause of "...
Hospitals, Medical Centres and Clinics... " which will be used by
mischievous Heads/CEOs to deprive genuine beneficiaries."

 

Ajorutu explained that JOHESU's observations are not in any way an
expression of ingratitude to the Federal Government, nor a disrespect or an
attempt to question the government's administrative or managerial authority.

 

JOHESU's scribe said that the Union has raised the alarm to avoid the
loophole and omission which was created in previous circulars for hazard
payment

 

The statement further reads, "This alert is premised on the ground that,
past unintentional oversight of the non-addition of "... Clinics and Health
Services, Training & Research institutions, including the Armed forces"...
in the Federal... to cover the aforementioned cadres, etc, caused so much
avoidable entropy. Its inclusion, especially in the spirit of the season,
will save many hours of inquiries and response/tonnes of paper, ink,
machinery tear & wear, man hours-loss, finance, stoppages of work &
attendant effects, etc."

 

JOHESU said that it is strongly appealing for the inclusion of every
category of health worker for the payment of hazard allowance to ensure a
crisis reduced health sector."-Vanguard.

 

Algeria is striving to diversify its economy by encouraging private and
public companies to improve the quality and competitiveness of their
products so as to satisfy local demands ahead of winning foreign markets.

 

The ultimate objective of the government is to develop a brand new and
efficient economic model that would curb the import bill and boost the
export of industrial goods, so that the nation will gradually reduce its
dependence on the hydrocarbon revenues. - Capital FM.

 

 

 

 


 


 


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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