Major International Business Headlines Brief::: 14 January 2022

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Major International Business Headlines Brief::: 14 January 2022 

 


 

 


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

 


 

 


ü  North Korea hackers stole $400m of cryptocurrency in 2021, report says

ü  Inflation: South Korea raises rates to pre-pandemic level

ü  US Supreme Court blocks Biden's workplace vaccine mandate

ü  Google will spend £730m to 'reinvigorate' its UK offices

ü  UK and India launch trade talks 'worth billions'

ü  Covid-19: France to relax travel rules from the UK

ü  Kenya Power in the spotlight after nationwide blackout

ü  French holiday bookings surge after rule change

ü  Biden looks to reshape Fed with historically diverse slate

ü  China posts record trade surplus in Dec and 2021 on robust exports

ü  UK economy finally bigger than before pandemic in November

ü  Asian shares slip on Fed officials' hawkish policy stance

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

North Korea hackers stole $400m of cryptocurrency in 2021, report says

North Korean hackers stole almost $400m (£291m) worth of digital assets in
at least seven attacks on cryptocurrency platforms last year, a report
claims.

 

Blockchain analysis company Chainalysis said it was one of most successful
years on record for cyber-criminals in the closed east Asian state.

 

The attacks mainly targeted investment firms and centralised exchanges.

 

North Korea has routinely denied being involved in hack attacks attributed
to them.

 

"From 2020 to 2021, the number of North Korean-linked hacks jumped from four
to seven, and the value extracted from these hacks grew by 40%," Chainalysis
said in a report.

 

The hackers used a number of techniques, including phishing lures, code
exploits and malware to siphon funds from the organisations' "hot" wallets
and then moved them into North Korea-controlled addresses, the company said.

 

 

Cryptocurrency hot wallets are connected to the internet and cryptocurrency
network and so are vulnerable to hacking. They are used to send and receive
cryptocurrency, and allow users to view how many tokens they have.

 

Many experts recommend moving large amounts of cryptocurrency not needed
day-to-day to "cold" wallets, which are disconnected from the wider
internet.

 

Chainalysis said it is likely that many of last year's attacks were
conducted by the so-called Lazarus Group, a hacking group sanctioned by the
US, which is believed to be controlled by North Korea's primary intelligence
bureau, the Reconnaissance General Bureau.

 

The Lazarus Group has previously been accused of involvement in the
"WannaCry" ransomware attacks, the hacking of international banks and
customer accounts and cyber-attacks on Sony Pictures in 2014.

 

"Once North Korea gained custody of the funds, they began a careful
laundering process to cover up and cash out," the report on last year's
cyber attacks added.

 

A United Nations panel that monitors sanctions on North Korea has accused
Pyongyang of using stolen funds to support its nuclear and ballistic missile
programmes as a way to avoid international sanctions.

 

Separately, in February last year, the US charged three North Korean
computer programmers with a massive hacking spree aimed at stealing more
than $1.3bn in money and cryptocurrency.

 

The cyber attacks affected companies from banks to Hollywood movie studios,
the Department of Justice said.-BBC

 

 

 

Inflation: South Korea raises rates to pre-pandemic level

South Korea has increased its base rate of interest to where it was before
the pandemic, as it tries to contain rising inflation and soaring household
debt.

 

The Bank of Korea's (BOK) widely expected decision to raise the rate to
1.25% was its third hike in six months.

 

Central banks around the world are trying to balance the impact of Covid-19
measures against inflationary risks.

 

In August, the country became the first major Asian economy to raise rates
since the start of the coronavirus era.

 

Surging inflation has ramped up pressure on South Korea's policy makers to
take action, as consumer inflation for 2021 as a whole jumped to 2.5%.

 

That was the fastest pace of price rises since 2011 and a sharper increase
than projected by the BOK.

 

Over the last two years, central banks, governments and international
financial bodies have pumped trillions of dollars into the global economy to
help cushion the impact of restrictions put in place to slow the spread of
the coronavirus.

 

Now, policy makers in countries around the world are starting to dismantle
those emergency stimulus measures.

 

South Korea has been at the forefront of the shift by the world's central
banks to wind down the huge amount of stimulus as they aim to curb rising
consumer prices.

 

The US Federal Reserve has signalled that it plans to increase its interest
rate three times this year.

 

That comes as prices in America are rising at their fastest rate in almost
40 years, with inflation up 7% year-on-year in December.

 

In the UK, the Bank of England raised interest rates last month for the
first time in more than three years, in response to calls to tackle surging
price rises.

 

That came after official figures showed the cost of living had surged by
5.1% in the 12 months to November, the highest level for a decade.-BBC

 

 

 

US Supreme Court blocks Biden's workplace vaccine mandate

The US Supreme Court has blocked President Joe Biden's rule requiring
workers at large companies to be vaccinated or masked and tested weekly.

 

The justices at the nation's highest court said the mandate exceeded the
Biden administration's authority.

 

Separately they ruled that a more limited vaccine mandate could stand for
staff at government-funded healthcare facilities.

 

The administration said the mandates would help fight the pandemic.

 

President Biden, whose approval rating has been sagging, expressed
disappointment with the decision "to block common-sense life-saving
requirements for employees".

 

He added: "I call on business leaders to immediately join those who have
already stepped up - including one third of Fortune 100 companies - and
institute vaccination requirements to protect their workers, customers, and
communities."

 

The puzzle of America's record Covid hospital rate

Former President Donald Trump cheered the court's decision, and said vaccine
mandates "would have further destroyed the economy".

 

"We are proud of the Supreme Court for not backing down," he said in a
statement. "No mandates!"

 

The administration's workplace vaccine mandate would have required workers
to receive a Covid-19 shot, or be masked and tested weekly at their own
expense.

 

It would have applied to workplaces with at least 100 employees and affected
some 84 million workers. It was designed to be enforced by employers.

 

Opponents, including several Republican states and some business groups,
said the administration was over-stepping its power with the requirements,
which were introduced in November and immediately drew legal challenges.

 

In the end, Joe Biden's vaccine mandates stood or fell based on judicial
interpretations of federal statute, not principles of individual liberty or
appeals to the greater good.

 

According to a majority of the Supreme Court, Mr Biden had the law on his
side when ordering healthcare workers to get vaccinated, but using a
51-year-old workplace safety statute to implement a vaccine-or-test
requirement on all large employers was a bridge too far.

 

Once again, the current balance of the Supreme Court comes into sharp
relief, with four reliably conservative justices, three reliable liberal
ones and two - Chief Justice John Roberts and Justice Brett Kavanaugh - at
the ideological fulcrum.

 

This mixed judicial bag is just the latest setback for a presidential
Covid-response plan that frequently has seemed a step behind the latest
twists in the pandemic. The administration was slow to encourage boosters
and caught flat-footed by the Omicron-induced surge in demand for testing.

 

Now Mr Biden will either have to convince Congress to act on mandates - an
unlikely prospect given the brick wall the rest of his agenda keeps hitting
in the Senate - or figure out new ways to shepherd the nation out of the
pandemic gloom.

 

line

In a 6-3 decision, the justices agreed with that argument, saying that the
workplace safety rule for large employers was too broad to fall under the
authority of the Department of Labor's Occupational Health and Safety
Administration to regulate workplace safety.

 

"Covid-19 can and does spread at home, in schools, during sporting events,
and everywhere else that people gather," the court's majority wrote.

 

"That kind of universal risk is no different from the day-to-day dangers
that all face from crime, air pollution, or any number of communicable
diseases."

 

"This is no 'everyday exercise of federal power,'" they added. "It is
instead a significant encroachment on the lives - and health - of a vast
number of employees."

 

The more limited rule concerning more than 10 million staff at healthcare
facilities that receive government funding did not pose the same concern,
they decided, by 5-4.

 

That said imposing conditions on recipients of public money fit "neatly"
into the authority of the Secretary of Health and Human Services.

 

The rulings come as some parts of the policies were due to go into effect
this week. The court heard arguments in the case on Friday.

 

The rulings reflected the political make-up of the court, which now has a
majority of justices appointed by Republican presidents.

 

The court's three liberal justices opposed blocking the vaccine mandate,
saying such a decision "stymies the federal government's ability to counter
the unparalleled threat that Covid-19 poses to our nation's workers."

 

Chief Justice John Roberts and Justice Brett Kavanaugh, seen as moderates in
the conservative majority, joined the liberals in allowing the healthcare
rule to stand.

 

The decision comes as the US experiences another wave of Covid-19
infections, with the Omicron variant spurring record cases and
hospitalisation rates.

 

The Biden administration had estimated that instituting a vaccine
requirement at big employers would save 6,500 lives and prevent 250,000
hospital admissions over six months.

 

More than 60% of Americans are fully vaccinated already. Independent of the
government's regulations, some companies, including Google, Citibank and
IBM, have started to move forward with their own requirements.

 

But the National Federation of Independent Businesses, a lobby group that
was one of the lead plaintiffs challenging the government's workplace
vaccine rule, had charged that it would burden small-business owners with
new compliance costs, make it harder to fill positions and lead to lost
profits and lost sales.

 

"Today's decision is welcome relief for America's small businesses, who are
still trying to get their business back on track since the beginning of the
pandemic," said Karen Harned, executive director of the group's legal
arm.-BBC

 

 

 

Google will spend £730m to 'reinvigorate' its UK offices

Google is backing a return to the office with an investment that will expand
its UK capacity by 50% and "reinvigorate" the work environment.

 

The search giant is spending £730m ($1bn) and expects headcount to rise from
6,400 to 10,000.

 

It is buying one of the London sites, Central Saint Giles, in which it is
currently a tenant.

 

Google's UK boss Ronan Harris told the BBC the investment reflected the
firm's faith in the office as a place of work.

 

"We want to reinvigorate the work environment. We're making this commitment
to rebuild. We're buying these buildings and we're keen to see everybody
come back in and see a vibrant workspace again," Mr Harris said.

 

As well as purchasing the Central Saint Giles site, Google said it would be
undertaking a multi-million pound refurbishment of its offices there to
ensure they were on a par with those in its new King's Cross development
currently under construction.

 

 

That will provide more space so offices can be less densely populated, and
will include collaboration spaces and "inclusive meeting rooms for hybrid
working" as well as covered outdoor workspaces, the firm said.

 

Current government guidance remains to work from home where possible, but
that - along with other government restrictions - will be reviewed on 26
January.

 

Eventually, Google wants the vast majority of its workforce to return to the
office for three days a week.

 

But employers are feeling their way as the country emerges from two years of
pandemic-enforced changes, during which many people adapted to completely
different ways of working.

 

"I think the next two [years] will be an experiment where we try and figure
out what hybrid and flexible actually mean," said Mr Harris.

 

"And I think it will differ from company to company and from role to role. I
think it'll be a lot of trial and error over the next two years."

 

Chancellor Rishi Sunak welcomed Google's investment, describing it as "a big
vote of confidence in the UK as a world-leading tech hub".

 

The employers group the CBI said a return to the workplace was vital for
economic recovery, particularly for the UK's town and city centres.

 

Retail and hospitality businesses especially are eager for office staff to
return to old habits, picking up coffees, sandwiches and shopping during the
day and going out after work in the evening.

 

However, many employees don't want to return full time to the office and the
number of days that employers require their staff to attend in person is
emerging as a key point of difference in the recruitment process.

 

Neil Carberry from the Recruitment and Employment Confederation told the
BBC: "Pay used to be the main lever employers could use in negotiations.
Office attendance is now a major conversation between firms and potential
employees."-BBC

 

 

 

UK and India launch trade talks 'worth billions'

Britain and India have concluded their first day of talks about a potential
free trade deal in New Delhi.

 

The aim is to have an agreement signed by the end of the year that could
boost trade by billions of pounds.

 

Indian trade minister Piyush Goyal and his UK counterpart Anne-Marie
Trevelyan said there could be a limited agreement in the next few months.

 

The UK has made a post-Brexit deal with India one of its priorities as it
looks to tap into fast-growing economies.

 

"This is an opportunity that we must seize to steer our partnership along
the track of mutual prosperity for the decades to come," Ms Trevelyan said.

 

Britain said the deal could almost double British exports to India, and
boost total trade between the countries by £28bn per year by 2035. Total
trade in 2019 was worth £23bn.

 

Trade negotiations with India are not for the faint-hearted.

 

But with no progress on a free trade deal with the US, and none expected in
the foreseeable future, the formal start of talks with India, being
announced in New Delhi on Thursday, is the biggest negotiation the UK
government will launch this year.

 

India is on course to become the third largest economy in the world by 2050,
and the government hopes UK-India trade will double over the course of this
decade.

 

Trade Secretary Anne-Marie Trevelyan calls the prospect of a free trade deal
with India "a golden opportunity" and there are certainly huge commercial
prizes up for grabs.

 

But India, with so many vested and vulnerable interests to protect, has
always been reluctant to liberalise.

 

The EU has been trying for years to reach a meaningful deal with India, with
little success. Australia too, has been working on a deal for a decade.

 

Areas such as government procurement policy and the trade in services are
particularly difficult.

 

India wants more opportunities for Indians to live and work in Britain, and
any trade deal could involve negotiations on relaxing rules and lowering
fees for Indian students and professionals going to the UK.

 

However, Mr Goyal said both countries will not make such issues a necessary
condition for a trade deal.

 

"Nothing is necessarily a deal-breaker in this agreement," Mr Goyal said.
"And I will not think there is any way for anybody to worry about issues
which are sensitive to any country, because both sides have agreed that
sensitive issues are not our priority," he added.

 

UK government ministers want British firms to be able to sell more products
such as whisky to India.

 

They also want India to become a bigger buyer of UK green technology and
British services.-BBC

 

 

 

Covid-19: France to relax travel rules from the UK

France will relax its restrictions for those travelling from the UK from
Friday, the government has announced.

 

Vaccinated travellers will no longer need a compelling reason to enter
France, and will not have to self-isolate when they arrive.

 

But a negative Covid test, taken 24 hours before leaving the UK, will still
be required for all those arriving.

 

Travel companies welcomed the news - with Jet2 reporting a "sharp" spike in
flight bookings to ski destinations.

 

French holiday bookings surge after rule change

France brought in the restrictions on 18 December in an attempt to slow the
spread of the Omicron variant.

 

People who are not vaccinated will still need a compelling reason to enter
France, and must still isolate for 10 days upon arrival.

 

The country is battling a surge in Covid-19 infections. On Thursday, there
were a record 368, 817 new cases and 341 deaths, according to Johns Hopkins
University.

 

Both holidaymakers and the travel industry have welcomed the change.

 

Melissa Hamblett from Gloucester has had to reschedule a trip to Disneyland
for their son Max's birthday five times since they originally booked in
2020.

 

"Our son doesn't know the update yet, he's at school right now," she said.
"He's going to be so happy."

 

She said it has been "really disappointing" having to keep rescheduling. "I
was convinced [it] would be happening again. I got bored of getting my hopes
up."

 

Eurostar welcomed the change and said it would increase the number of its
services in the coming weeks, while Brittany Ferries called it a "great
relief".

 

"I can only hope that we have seen the last border closure of the Covid
crisis," said Christophe Mathieu, boss of the ferry company.

 

"Thousands of Brittany Ferries passengers have been disrupted and millions
of pounds in income has been lost as a consequence of draconian measures
like border closures."

 

Around 17 million British nationals visit France every year - and ABTA,
which represents travel firms, said it was one of the most popular
destinations for UK holidaymakers.

 

"Thousands of people head there for ski breaks at this time of year, so this
will be a huge relief for customers with holidays booked there for the next
few weeks, who have been waiting anxiously for news," said ABTA.

 

"We are still waiting for more details from the French government on entry
requirements such as the rules that will apply for children. Travellers
should continue to monitor the Foreign Office travel advice."

 

Jet2 announced it was resuming flights to French ski destinations, with its
boss adding: "This is the positive news that skiers and snowboarders have
been looking forward to, and the spike in bookings for ski flights has been
both sharp and immediate."

 

France tightened its restrictions earlier this month, making remote working
compulsory for those who can, and limiting public gatherings for indoor
events. Eating and drinking on long distance transport is banned, cafés and
bars can provide table service only and nightclubs are closed.

 

On Thursday, the French Senate approved a controversial pass, which requires
people to be fully vaccinated to visit a range of spaces, including bars and
restaurants. It also removes the option of showing a negative test to get
in.

 

Thousands protested against the pass on Saturday, with many angry at
President Emmanuel Macron who has said he wants to "piss off" unvaccinated
citizens.

 

In total, 12.6 million people have been infected in France, and more than
127,000 have died. -BBC

 

 

 

Kenya Power in the spotlight after nationwide blackout

The hashtag #KPLC has been trending on Twitter this week as Kenyans share
memes and gifs about the country's worst national blackout for years.

 

While some tried to find some light-hearted moments in the midst of
darkness, others fumed at the inefficiency of the state-run Kenya Power
Lighting Company.

 

It was the third nationwide blackout in the past four years and raised
questions over KPLC's ability to provide a stable power supply.

 

In a statement, the company said four pylons supporting the power line,
which connects the capital, Nairobi, to a hydroelectric dam in the central
region, collapsed. It said vandalism had weakened the structures.

 

Sabotage or plain failure?

Police are investigating the cause of the blackout, with the head of
criminal investigations telling journalists that they can't rule out
anything, following concerns of possible sabotage following reforms at the
energy ministry that were seen to have ruffled the feathers of bureaucrats.

 

A cabinet reshuffle in September 2021 saw President Uhuru Kenyatta appoint
Monica Juma and her assistant Gordon Kihalangwa at the ministry to push
through the reforms which, among other things, have seen the cost of
electricity fall by 15%.

 

Mr Kihalangwa later told lawmakers that heads would roll at Kenya Power over
crimes allegedly committed in the drafting of Power Purchase Agreement (PPA)
contracts. Under a typical power purchase agreement, a producer gets paid
for any electricity generated, even if it is impossible for Kenya Power to
sell it in the event of surplus supply.

 

The BBC understands that heads of various departments and corporations in
the ministry have been forced to resign, with others opting for early
retirement. No-one has been charged.

 

A presidential taskforce on power purchase agreements recommended that
independent power producers cut tariffs paid by Kenya Power by half to match
the prices of the power-generating company, KenGen. It also advised that all
power purchase agreements still under negotiation be suspended.

 

The reduction in the cost of power and review of power purchase agreements
would mean less revenue for Kenya Power, in which private investors have a
49.9% shareholding.

 

A struggling monopoly

 

The list of frustrations with KPLC is long - including constant outages,
foot-dragging in restoring power, inflated electricity bills and taking ages
to connect potential clients. It's no surprise it has attracted monikers
such as "Kenya Paraffin and Candles Limited".

 

Kenya Power has also been sinking in debt, with its financial disclosures
pointing to a company reliant on debt to run operations. It has borrowed
from institutions like the International Development Agency (IDA), China
Exim Bank, and Japan Development Bank. The loans are guaranteed by the state
and are therefore payable by taxpayers in the event of a default.

 

Its procurement procedures have also been the subject of investigations,
with a one preliminary audit report showing that it held about $85m (£63m)
dollars in deadstock - items such as power cables, meters and transformers
that have been sitting in warehouses for more than five years without being
used.

 

Critics have also accused the company of behaving like a monopoly - saying
it strangles other players in the market by limiting their distribution
capacity to very small areas.

 

Counting the losses

Tuesday's blackout came at a time the Energy and Petroleum Regulatory
Authority (Epra) is seeking to force electricity companies to compensate
consumers for financial losses, equipment damage, physical injuries and
death due to power outages.

 

Currently, Kenya Power compensates for injuries and damaged kit, but does
not pay for financial loss occasioned by power outage.

 

Although losses incurred during Tuesday's outage are yet to be quantified,
it is obvious many businesses reliant on electricity - including industries
and small businesses such as welding shops and salons - bore significant
losses.

 

Sellah Anyango, who operates a salon in Nairobi, told the BBC her
frustrations.

 

"I had customers come and leave as there was no power. The business has
already been struggling from hits it took due to the coronavirus pandemic.
Now this? How will we pay rent and salaries with such disruptions? Totally
unacceptable."

 

The move towards solar

A growing shift towards solar power systems by industries seeking reliable
and cheaper supply has also rattled Kenya Power. The company acknowledged
that some of its industrial customers — who account for about 55% of its
sales revenue — were moving to own-generated solar power.

 

A man adjusts a solar panel on his roof at dusk in the villqge of
Kwa-Mutisya in Machakos county, some 100 kilometres southeast of Nairobi, on
November 16, 2016.

 

 

Big power consumers such as Africa Logistics Properties (ALP), Mombasa
International Airport, the International Centre of Insect Physiology and
Ecology (Icipe) have recently commissioned solar power units on their
properties.

 

Several other companies, universities and factories have turned to solar
photovoltaic grid-tied systems to supply power for internal use.

 

Official data released last year showed there was an increase in the
adoption of solar power. Some 2.3 million households use solar for lighting,
representing about 19% of the total number of homes.

 

Kenya power is eyeing a share of that cake and disclosed that is set to join
the solar business. It said it will scout for customers seeking to have
solar panels installed on their rooftops and contract private firms to do
the job under a design-build-finance and operate (DBFO) model.

 

Kenya Power would then sell the generated power at a discounted rate to the
owners of homes and office blocks hosting its solar plants.

 

As the country switches towards solar energy, Kenya Power will be forced to
adapt or soon it might find itself irrelevant and cast into the
darkness.-BBC

 

 

 

French holiday bookings surge after rule change

French holiday bookings have jumped after Paris said it would ease
restrictions on UK travellers, travel firms have said.

 

Airline Jet2 said it had seen a "sharp" rise in bookings and searches for
flights to French skiing destinations.

 

And Tour operator Tui said ski bookings doubled on Wednesday following
reports the rules would change.

 

Many UK holidaymakers had to cancel holidays when France banned all but
essential travel last month.

 

But from Friday, vaccinated Britons will no longer need a compelling reason
to enter France or self-isolate when they arrive.

 

They will only need to present a negative Covid-19 test taken 24 hours
before leaving the UK.

 

ABTA, which represents British travel agents, said the rule change was a
relief for both holidaymakers and travel firms.

 

France to relax travel rules from the UK

"Thousands of people head [to France] for ski breaks at this time of year,
so this will be a huge relief for customers with holidays booked there for
the next few weeks, who have been waiting anxiously for news," it said.

 

It added that the French government still had to give more details on entry
requirements including the rules for children.

 

Jet2 boss Steve Heapy said the rule change was good news for the thousands
of Britons who go on skiing trips to France during winter.

 

"This is the positive news that skiers and snowboarders have been looking
forward to, and the spike in bookings for ski flights has been both sharp
and immediate," he said.

 

'Bookings doubled'

Tui, which owns tour operator Crystal Ski Holidays, said bookings had been
increasing in anticipation that the rules would be relaxed.

 

"Bookings to France doubled yesterday even before the announcement and we
would expect to see another very positive uptick now it's official," said
Chris Logan, managing director of Crystal Ski Holidays.

 

Diane Palumbo, sales director at independent tour operator Skiworld, said
the announcement had come too late for bookings for this weekend, which had
been cancelled - although many customers were keen to rebook.

 

She said interest in the rest of the season was "enormous", with many people
ready for a break after two years of Covid restrictions.

 

Brittany Ferries chief executive Christophe Mathieu said the rules
relaxation "comes as a great relief", adding that "businesses in the travel
sector have struggled to survive".

 

"Thousands of Brittany Ferries passengers have been disrupted and millions
of pounds in income has been lost as a consequence of draconian measures
like border closures," he said.

 

Rail operator Eurostar said it would "continue to increase the frequency of
our services in the coming weeks" and that it was "ready to welcome more
passengers on board".-BBC

 

 

 

Biden looks to reshape Fed with historically diverse slate

(Reuters) - U.S. President Joe Biden has picked former Federal Reserve
Governor Sarah Bloom Raskin for the Fed's key regulatory post and two Black
economists - Lisa Cook and Philip Jefferson - to serve on its board in what
would represent a landmark demographic overhaul of the world's most powerful
central bank.

 

The White House sent the nominations to the Senate late on Thursday,
according to two sources familiar with the process.

 

The appointments would fill out the ranks of a seven-member panel that
wields tremendous influence over the world's largest economy, and would make
the Fed's top leadership the most diverse by race and gender in its 108-year
history.

 

The appointments come as Biden's own plans to reboot the economy after the
COVID-19 pandemic have run into an unexpected spike in inflation. It
presents an opportunity for him to leave a lasting imprint on a body that
sets economic policies - particularly about interest rates - that
reverberate across the globe.

 

"President Biden has nominated a serious, qualified, nonpartisan group of
five nominees for the Board of Governors of the Federal Reserve who together
will bring an extraordinary amount of skill, experience, and competence to
the Federal Reserve," said the source familiar with the nominations.

 

"They will prioritize the independence of the Federal Reserve and are
committed to fighting inflation, maintaining stability in our economy in the
midst of the pandemic, and making sure our economic growth broadly benefits
all workers."

 

The White House declined to comment.

 

The nominations drew immediate fire from the top Republican member of the
Senate Banking Committee, signaling a potentially rocky, and partisan,
nomination process ahead in a legislative body that Democrats control only
by virtue of Vice President Kamala Harris' dual role as president of the
Senate.

 

"I have serious concerns" about Raskin, Senator Pat Toomey of Pennsylvania
said in statement, adding he believes she would try to keep banks from
lending to oil and gas companies and otherwise stray from the two
congressional mandates that steer the Fed's core mission - maximum
employment and price stability.

 

Toomey and other Republicans repeatedly queried Fed Governor Lael Brainard,
nominated to the Fed's No. 2 role, about her support for climate risk
research during her nomination hearing earlier Thursday. He also signaled
skepticism toward Cook and Jefferson, saying he will "closely examine"
whether they have "the necessary experience, judgment, and policy views to
serve as Fed Governors."

 

MORE DIVERSE FED BOARD

 

Cook, a professor of economics and international relations at Michigan State
University, would be the first Black woman to serve as a Fed governor.
Jefferson, a professor and senior administrator at Davidson College in North
Carolina, would be only the fourth Black man to sit on the panel and the
first in more than 15 years.

 

Biden's picks would mean the seven-member Board of Governors would include
four women, also a first. Currently, the Fed's board has only six members,
all white and four of whom are men.

 

"It's clearly a changing of the guard," Harvard University Professor Larry
Katz said. This is a "path-breaking new set of nominees who will bring
important perspectives and representation to the board."

 

Former Fed governor Elizabeth Duke, who served with Raskin, told Reuters
that Biden's nominees will "inspire more and more diverse people to go into
economics and to study the practice of economics."

 

The effort to make the Fed look more like America comes at a critical time.
Inflation is at its highest level in decades. Unemployment is down, but U.S.
employers have 3.6 million fewer workers on their payrolls than they did
before the pandemic.

 

Charged with both keeping prices stable and maximizing U.S. employment, the
Fed is debating how fast and how far to raise interest rates and otherwise
tighten monetary policy to rein in inflation without short-circuiting the
labor market.

 

Its current leadership has already signaled readiness to start raising
interest rates as early as March, dialing back from an ultra-accommodative
footing that could test financial markets and influence the pace of recovery
during an election year in which control of Congress is on the line. read
more

 

Leading the pivot is Fed Chair Jerome Powell, whom Biden late last year
asked to serve a second four-year term as chairman, starting next month. The
Senate Banking Committee held Powell's nomination hearing on Tuesday, while
Fed Governor Lael Brainard, who Biden has nominated to be the central bank's
vice chair, appeared before the panel on Thursday.

 

Progressives had favored more diverse picks to lead the Fed; the slate Biden
put forward Thursday helps meet that demand.

 

Raskin, who spent four years as a Fed governor before being tapped as a
deputy Treasury secretary from 2014 to 2017, is expected to bring tougher
oversight to bear on Wall Street than the Fed's previous vice chair of
supervision, Randal Quarles, who left the Fed at the end of last year.

 

Cook has written extensively about the economic consequences of racial
disparities and gender inequality, and growing up lived through the violence
of school desegregation in the U.S. South. Jefferson has written extensively
on wages, poverty and income distribution.

 

Kevin Hassett, who chaired the Council of Economic Advisers under former
President Donald Trump, said Jefferson was an "incredibly smart economist"
and serious academic who should be confirmed by the Senate quickly.

 

"He's the kind of honorable, serious person the Federal Reserve should
have."

 

The Thomson Reuters Trust Principles.

 

 

 

China posts record trade surplus in Dec and 2021 on robust exports

(Reuters) - China posted a record trade surplus in December and in 2021, as
exports outperformed expectations during a global pandemic, but some
analysts pointed to a slowdown in international shipments in the coming
months.

 

The trade surplus hit $676.43 billion in 2021, the highest since records
started in 1950, up from $523.99 bln in 2020, according to data from the
statistics bureau.

 

China also posted a record trade surplus for the month of December as
exports remained robust while import growth slowed sharply, customs data
showed on Friday.

 

The trade surplus rose to $94.46 billion in December, the highest since
records started in August 1994. That was up sharply from a $71.72 billion
surplus in November and above a forecast for a $74.50 billion surplus in a
Reuters poll.

 

China's hefty trade surplus with the United States, a key source of
contention between the world's two biggest economies, hit $39.23 billion in
December, widening from $36.95 billion the month before, but below this
year's high of $42 billion in September.

 

China's commerce ministry said on Thursday that it hopes the United States
can create conditions to expand trade cooperation, after Chinese purchases
of U.S. goods in the past two years fell well short of the targets in a
Trump-era trade deal. read more

 

China's exports outperformed expectations for much of 2021, but shipments
have been slowing as an overseas surge in demand for goods eases and high
costs pressure exporters. It was unclear how the Omicron coronavirus variant
would affect that trend.

 

Exports increased 20.9% year-on-year last month, beating expectations for a
20% rise, but down from a 22% gain in November.

 

The trade data provided some support to the yuan , which looked set for the
biggest weekly gain in two months.

 

"Exports remained strong last month but may soften in the coming months amid
growing disruptions at ports," said Julian Evans-Pritchard, senior China
economist at Capital Economics, in a note.

 

China reported a total of 143 local confirmed COVID-19 cases for Jan. 13,
its health authority said on Friday, including in the key northern port city
of Tianjin. read more

 

But Zhang Zhiwei, chief economist at Pinpoint Asset Management, said exports
may already be benefiting from Omicron's disruption to other countries'
supply chains.

 

"We expect China's exports to remain strong in Q1 because of resilient
global demand and worsening pandemic in many developing countries. Currently
the strong exports may be the only driver helping China's economy," said
Zhang.

 

IMPORT GROWTH

 

The world's second-largest economy staged an impressive recovery from the
pandemic, with exports helping to buoy growth as several other sectors were
faltering, but there are signs the momentum is flagging.

 

A property downturn and strict COVID-19 curbs could hurt the 2022 outlook,
with some analysts pointing to the slowdown in import growth as evidence
that this is already happening.

 

Imports rose 19.5% year-on-year in December, the customs data showed,
missing a forecast for a 26.3% rise and down sharply from a 31.7% gain in
November.

 

"Imports dropped back sharply, consistent with continued domestic weakness,
especially in the property sector," said Evans-Pritchard.

 

Customs data showed China's imports of the key steelmaking ingredient iron
ore slipped from the month before on steel production curbs and slowing
property construction. read more

 

"We expect import growth to remain muted in H1 this year as China's domestic
demand will continue to be dampened by the property slowdown and weak
consumption," said Louis Kuijs, head of Asia economics at Oxford Economics,
in a note.

 

China's economic growth is likely to slow to 5.2% in 2022, before steadying
in 2023, a Reuters poll showed, as the central bank steadily ramps up policy
easing to ward off a sharper downturn.

 

China releases fourth quarter gross domestic product data on Monday.

 

For all of 2021, total exports rose 29.9%, compared to a 3.6% gain in 2020.
Imports for the year gained 30.1% percent, after falling 1.1 percent in
2020.

 

The Thomson Reuters Trust Principles.

 

 

 

UK economy finally bigger than before pandemic in November

(Reuters) - Britain's economy grew by a much stronger-than-expected 0.9% in
November, finally taking it above its size just before the country went into
its first COVID-19 lockdown, the Office for National Statistics said on
Friday.

 

The world's fifth-biggest economy was 0.7% bigger than it was in February
2020, the ONS said.

 

Economists polled by Reuters had forecast monthly gross domestic product
growth of 0.4% for November.

 

"It's amazing to see the size of the economy back to pre-pandemic levels in
November – a testament to the grit and determination of the British people,"
finance minister Rishi Sunak said.

 

Other economies have already recovered their pre-COVID size, chief among
them the United States.

 

Despite November's growth acceleration, GDP probably took a hit in December
when the Omicron coronavirus variant swept Europe, and the loss of momentum
is likely to have stretched into January with many firms reporting severe
staff absences and consumers still wary of going out.

 

But health officials think the Omicron infections wave has now peaked in
Britain and analysts say the hit to the economy is likely to be short-lived,
allowing the Bank of England to continue raising interest rates this year.

 

The ONS said, data revisions aside, GDP in quarterly terms would reach or
surpass its pre-coronavirus level in the October-December period of last
year, as long as economic output does not fall by more than 0.2% in
December.

 

The ONS said architects, retailers, couriers and accountants had a bumper
month in November and construction recovered from several weak months as raw
materials became easier to source after problems in global supply chains.

 

Britain's economy will still face challenges in the months ahead, even once
coronavirus restrictions are relaxed.

 

"While the UK economy should rebound once Plan B measures are lifted,
surging inflation and persistent supply chain disruption may mean that the
UK's economic growth prospects remain under pressure for much of 2022,"
Suren Thiru, head of economics at the British Chambers of Commerce, said.

 

The Thomson Reuters Trust Principles.

 

 

Asian shares slip on Fed officials' hawkish policy stance

(Reuters) - Asian shares took a beating on Friday after a fresh salvo of
hawkish remarks from Federal Reserve officials solidified expectations that
U.S. interest rates could rise as soon as March, leaving markets braced for
tighter monetary conditions.

 

Fed Governor Lael Brainard became the latest and most senior U.S. central
banker on Thursday to signal that rates will rise in March to combat
inflation. read more

 

Equity markets turned deeply red, with MSCI's broadest index of Asia-Pacific
shares outside Japan (.MIAPJ0000PUS) shedding 0.9% in mid-afternoon trade,
while Australia (.AXJO) lost 1.1% and Japan's Nikkei (.N225) gave up 1.3%.

 

South Korean shares (.KS11) dropped 1.4% after the country's central bank
raised its benchmark rate 25 basis points to 1.25% on Friday, as expected,
taking it back to where it was before the pandemic as it seeks to restrain
consumer price rises. read more

 

China's blue-chip index (.CSI300) declined 0.5% and Hong Kong's Hang Seng
index (.HIS) was off 0.9%.

 

"Everyone is really nervous right now. It's because everything is
potentially going to come under pressure from aggressive Fed policy," said
Kyle Rodda, a market analyst at IG in Melbourne.

 

"There's the hope that it'll be a slow and painless handoff to normal
policy," he added. "But that's not necessarily assured with the Fed taking
inflation so seriously."

 

Fed Governor Christopher Waller, who has repeatedly called for a more
aggressive response to high inflation, later on Thursday said a rapid-fire
series of four or five U.S. rate hikes could be warranted if inflation
doesn't recede.

 

U.S. inflation as measured by the consumer price index surged 7.0% in
December, posting its biggest year-on-year increase in nearly four decades,
data on Wednesday showed. read more

 

INFLATED ASSETS

 

In the bond market, yields on 10-year U.S. Treasury notes were at 1.720%,
settling well off Monday's two-year highs, signalling investors' preference
for the safety of government debt over volatile technology and growth
stocks.

 

A Reuters report that Bank of Japan policymakers are debating how soon they
can start an eventual interest rate hike helped drive up the yen and
Japanese government bond (JGB) yields. read more

 

The five-year JGB yield hit -0.015%, its highest since January 2016, when
the BOJ adopted negative rates.

 

The yen, which traditionally has drawn demand from flights to safety, last
traded at 113.70 after hitting its strongest against the greenback in 3-1/2
weeks.

 

Separate data showed Japan's wholesale inflation rose 8.5% year-on-year in
December, accelerating at the second fastest pace on record, a sign higher
raw material and fuel costs are squeezing corporate margins. read more

 

IG's Rodda said markets were facing a more persistent risk of growing demand
for safe-havens, especially around key events involving U.S. central bank
policy and U.S. data.

 

"This is a problem because every asset has arguably been inflated by loose
monetary policy," he added.

 

"Every asset will have to correct to reflect higher or tighter monetary
policy."

 

The dollar index was down 0.1% at 94.638 after hitting a two-month low,
pushed down by strength in the euro, which made a new two-month high at
$1.1482 .

 

In commodity markets, gold was 0.3% firmer at $1,827 an ounce but still
below its January peak at $1,831.

 

Oil futures remained soft on expectations that Washington may soon act to
cool prices that remain above $80 per barrel, while movement curbs in China
to rein in COVID-19 outbreaks weighed on fuel demand.

 

Brent was nearly flat at $84.49 a barrel, while U.S. crude lost 18 cents to
$81.95.

 

The Thomson Reuters Trust Principles.

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2022

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

 

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


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