Major International Business Headlines Brief::: 31 January 2022

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Major International Business Headlines Brief::: 31 January 2022 

 


 

 


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ü  Spotify: Streaming giant announces plans to clamp down on Covid
misinformation

ü  Macau police arrest leading casino boss amid crackdown

ü  Brexit: UK plan to remove EU law sparks nations' anger

ü  How the high cost of living is hitting Singapore's poor

ü  Asia stocks make tentative gains, Brent tops $91

ü  Elliott and Vista nears $13 billion deal to buy Citrix - source

ü  Japan's factory output dips more than expected as risks emerge

ü  Pearson buys certification group Credly in deal valued at $200m

ü  UK businesses scale back pay plans despite higher inflation - Lloyds

ü  T-Mobile to terminate corporate employees who aren't vaccinated by April
-memo

ü  Macau Legend shares fall over 20% after CEO's arrest

ü  Chinese developer Shimao shares rise nearly 5% after more asset disposals

ü  Italy's Treasury pushing for CEO change at Monte dei Paschi - sources

ü  Oil rises, heads for best month since Feb 2021 on supply concerns

ü  China's Evergrande seeks legal advice over HK rural plot

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Spotify: Streaming giant announces plans to clamp down on Covid
misinformation

Spotify says that it is working to add advisory warnings to any podcast on
its platform that discusses Covid-19.

 

CEO Daniel Ek said that the new warning will redirect users to a data hub of
coronavirus facts.

 

The move follows criticism of its work with Joe Rogan, a US podcast host who
has interviewed vaccine-sceptics.

 

The platform also published existing rules which bar the streaming giant's
contributors from sharing false information that could cause harm.

 

In a statement posted to Spotify's website, Mr Ek wrote that it has "become
clear to me that we have an obligation to do more to provide balance and
access to widely-accepted information from the medical and scientific
communities guiding us through this unprecedented time".

 

Mr Ek said that the company had on Sunday published its long-standing
"Platform Rules" - guidelines for creators on which content is considered
unacceptable.

 

 

They were developed by the company in conjunction with a team of external
experts and are updated regularly, the Swedish billionaire said.

 

The rules say that creators should avoid content that "promotes dangerous
false or dangerous deceptive medical information that may cause offline harm
or poses a direct threat to public health".

 

These include suggesting that Covid-19 or other diseases are not real and
encouraging people to deliberately get infected with coronavirus in order to
build immunity.

 

Content which breaks the rules could be removed, and repeated violations
could lead to an account being taken down.

 

In recent weeks the company has come under scrutiny over the views of its
star host, Joe Rogan, who agreed a $100 million deal to move his popular
podcast exclusively onto the platform in late 2020.

 

Mr Rogan has discouraged vaccination in young people and promoted the use of
the unproven anti-parasitic drug ivermectin to treat the virus.

 

This week, musicians Neil Young and Joni Mitchell led a procession of
artists demanding that their music be removed from the platform.

 

Mr Young called the site "the home of life-threatening Covid misinformation"
in a post to his website on Wednesday.

 

The Duke and Duchess of Sussex have also relayed their "concerns" to Spotify
over Covid misinformation but will continue to work with the platform.

 

In early January, a group of doctors, scientists and healthcare
professionals signed an open letter to Spotify citing Rogan's "concerning
history" in discussing the Covid-19 pandemic.

 

The Joe Rogan Experience is Spotify's most popular podcast, with a reported
200 million downloads a month.-BBC

 

 

 

Macau police arrest leading casino boss amid crackdown

Police in Macau have arrested a leading casino boss amid a crackdown in the
world's biggest gambling hub.

 

On Sunday, authorities said they had arrested two men over alleged money
laundering and illegal gambling.

 

Macau Legend Development, which runs three casinos in the city, confirmed
the arrest of its chief executive and controlling shareholder Chan Weng Lin.

 

The move comes after the arrest in November of high profile Macau gambling
executive Alvin Chau.

 

"The Board is of the view that as the Group is operated by a team of
management personnel and the above incident relates to the personal affairs
of Mr Chan and not related to the Group," Macau Legend Development said in a
statement to the Hong Kong Stock Exchange.

 

"The Board does not expect the above incident to have a material adverse
impact on the daily operations of the Group," it added.

 

The company runs the Landmark Macau, Babylon Casino and Legend Palace Casino
in Macau.

 

Shares in Macau Legend Development plunged by as much as 30% in Hong Kong on
Monday.

 

Mr Chan is also the chairman of Tak Chun Group, which organises "junkets",
or trips to casinos for wealthy gamblers.

 

Tak Chun did not immediately respond to a request for comment from the BBC.

 

In November, Alvin Chau, the chairman of Macau's biggest junket operator
Suncity, was arrested as authorities cracked down on alleged money
laundering and illegal cross-border gambling.

 

Macau's Gaming Inspection and Coordination Bureau, which regulates the
city's gambling industry, met with police this month with the aim of
strengthening their collaboration on gambling-related crimes.

 

The regulator said it would pay close attention to what happens in and
outside casinos, which are expected to see an increase in visitors during
February's Lunar New Year festival.

 

Gambling is illegal in mainland China but is allowed in Macau, which like
Hong Kong is a special administrative region of China.-BBC

 

 

 

Brexit: UK plan to remove EU law sparks nations' anger

The government has set out a plan to overhaul "outdated" EU laws copied over
after Brexit - a move it says will cut £1bn of red tape for businesses.

 

Downing Street said a Brexit Freedoms Bill will change how Parliament can
amend or remove thousands of EU-era regulations that remain in force.

 

Boris Johnson said the move would "unleash the benefits of Brexit" and make
British business more competitive.

 

But the plan was criticised by the devolved administrations.

 

A source said Scottish, Welsh, and Northern Irish ministers believe the
plans undermine the devolution settlement.

 

They added that a meeting between the Attorney General Suella Braverman and
devolved ministers on Saturday was "last-minute, fractious, and
cack-handed".

 

The Scottish Government's Cabinet Secretary for the Constitution Angus
Robertson said: "This makes a mockery of the UK government's recent
commitment to reset relationships with the devolved governments."

 

And Mick Antoniw, the Welsh Minister for the Constitution, said the UK
government was driving a "coach and horses through the concept of mutual
consent".

 

The UK government said it would "continue to work closely with the devolved
administrations".

 

Did the EU ban crown marks on pint glasses?

What's been causing lorry queues at Dover?

The UK copied over the laws to smooth its exit from the EU on 31 January
2020, and kept them during a transition period that ended in January 2021.

 

Since September, the government has been reviewing which of these it wants
to keep in place, ditch or amend.

 

Under Brexit withdrawal legislation passed in 2018, retained EU laws have a
legal status of their own - and a special process for changing them.

 

In an announcement for the two-year anniversary of the UK's exit from the
EU, No 10 said its new bill would ensure changes can be made more easily.

 

The prime minister said: "The plans we have set out today will further
unleash the benefits of Brexit and ensure that businesses can spend more of
their money investing, innovating and creating jobs."

 

Ms Braverman said: "This work is key to us taking charge of our regained
sovereignty which the British people voted for in 2016 and 2019."

 

The government has not set out which EU laws it intends to change, but said
it would promote a "distinctive approach" to UK law, with a focus on
promoting new technologies.

 

Downing Street said the changes would build on others since Brexit - such as
the simplification of alcohol duties and decision to scrap the EU-mandated
5% scrap VAT on tampons.

 

Brexit: How did we get here?

But there was anger after the changes were discussed with the devolved
nations on Saturday.

 

Mr Robertson said: "Within days of the UK government promising more
respectful ways of working, we were informed of what is clearly a rushed
exercise over the weekend with nothing more than a vague verbal briefing.

 

"If these proposals involve changing the law in devolved policy areas, then
pressing ahead without the consent of the Scottish Parliament would
demonstrate yet again the UK government's intent to undermine devolution."

 

While in Wales, Mr Antoniw said: "The government has been unable to provide
assurances that it's plans for future changes in dealing with 'retained' EU
law would not affect the devolution settlement."

 

A UK government spokesperson said: "We continue to work closely with the
devolved administrations to ensure that a common approach can be taken where
powers and law have returned from the EU which intersect with policy areas
that fall within devolved competence.

 

"The details of the bill will be brought forward in due course. Our
objective is to make it easier to amend or remove outdated EU law which is
no longer right for the UK and end its special status in our legal
framework."

 

Meanwhile, Labour criticised ministers for not using Brexit to scrap VAT on
energy bills, which had to be at least 5% in the EU.

 

Shadow attorney general Emily Thornberry said the public "overwhelmingly
support" the change, adding: "It is time the government started
listening."-BBC

 

 

 

How the high cost of living is hitting Singapore's poor

In South East Asia you don't get much more of a staple food than chicken
rice. Found in almost every food court and hawker centre, it is considered
one of Singapore's national dishes.

 

Daniel Tan, who owns six chicken rice stalls, has previously charged $2.20
(£1.60) for a small portion. But Covid has seen the cost of his ingredients
rise sharply.

 

The price of chicken has gone up by 50% and vegetable costs have more than
doubled since January 2020, he says.

 

"We've been absorbing the costs for a significant period of time," he tells
me as we meet at one of his OK Chicken Rice stalls in the north of
Singapore.

 

"When the pandemic hit our first thought was this was a short-term emergency
- six months, maybe a year - so we held [prices] for as long as we can
because we were hoping for the whole thing to be over."

 

But when his electricity bills also jumped, Mr Tan decided it was time to
raise prices. "A thousand dollar electrical bill for a chicken rice store
really is not sustainable," he says.

 

 

"If I go on any further, either my staff are not paid or I have to close
down some stores and that's not what we want to do."

 

Due to border closures and new employment regulations, Mr Tan has faced
staff shortages and higher salaries, which all feed into rising costs for
his business.

 

The Food and Agriculture Organization (FAO) says global food prices rose 28%
in 2021.

 

"The last time food prices were this high was in 2011, when policymakers
were actually warning about a global food crisis," says Dr Abdul Abiad of
the Asian Development Bank (ADB).

 

These latest price rises are due to higher energy costs, which affect food
and fertiliser production, with global supply chain issues compounding the
problem.

 

Even in a wealthy nation like Singapore, it means that the number of
families seeking help has increased.

 

"What we have seen when we make the door-to-door deliveries is that young
families [with] both husband and wife working a part-time job or in the gig
economy - these were the families that got impacted when Covid hit and all
the part-time work dried up," says Nichol Ng, co-founder of Food Bank
Singapore.

 

It is not just the poorest 10% of the population who now need help, she
says: "It has slowly crept to maybe 20% of the population including middle
income families that might not even know where to get help in the first
place."

 

And it is also not just higher food prices that are affecting those in need.
"Due to Covid, everybody's self-awareness about looking after themselves in
terms of hygiene has increased," says Ms Ng.

 

But higher palm oil prices mean that shampoos, hand soaps and sanitisers
have also become a lot more expensive.

 

"Up to 20% of our requests thus far, especially starting from the second
half of last year, has been pivoting towards personal hygiene products," she
adds.

 

Ms Ng is also concerned that the current wave of inflation does not seem to
be temporary. "In the past, at certain times of the year, you might see
these price surges but it seems that this inflation is going to be
persistent - and none of us really have that crystal ball to understand when
it is going to end," she says.

 

Elsewhere in the region the impact of higher prices is even more severe. The
latest FAO report shows more than 375 million people in Asia faced hunger in
2020, an increase of 54 million from the previous year.

 

In 2020, the Global Food Banking Network saw the number of people needing
help increase by more than 130% to 40m, with half of them living in Asia.

 

This is despite the fact that food price increases in Asia have been more
muted than in the US or Europe, where inflation has soared to levels not
seen in decades.

 

There are several reasons for this, including a good rice harvest in 2021,
says the ADB's Dr Abiad. While maize prices rose 44% last year and wheat by
31% , rice prices dropped 4% . "So rice being the main staple in many Asian
economies contributed to a food price inflation being lower in the region,"
he says.

 

Asian nations also produce a lot of their own food, which has been sold in
domestic markets rather than being exported. Governments have also been
working to ensure that food supplies have been stable, says Dr Abiad.

 

In the Philippines, for example, liberalisation of rice imports has allowed
the supply of rice to improve which has kept prices low.

 

Meanwhile, China has been stockpiling various important food products, which
has resulted in it bucking the trend, with the country's food prices falling
in 2021.

 

But it has also led to criticism that the world's second biggest economy,
which accounts for 20% of global population, is hoarding supplies as it is
estimated to hold 69% of the world's corn reserves, 60% of its rice and 51%
of its wheat by mid-2022, according to the US Department of Agriculture.

 

Singapore imports the majority of its foodstuffs, but so far big supermarket
chains like NTUC FairPrice have decided not to pass on higher prices to
consumers.

 

To keep the prices of key products stable, the firm says it is employing
various strategies including "stockpiling of daily essentials, forward
buying and diversifying our import sources to over 100 countries".

 

NTUC FairPrice also has more than 2,000 own-brand products such as rice,
oil, toiletries and cleaning products that it says are at least 10% cheaper
than comparable popular brands.

 

Mr Tan of OK Chicken Rice, who also owns three mini supermarkets, says
smaller retailers tend to take their cue from larger rivals when pricing
goods.

 

"They act like a central bank to the rest of the grocery players in
Singapore. The good thing about it is that inflation doesn't spike up as
much during a crisis but the bad side effect is that entrepreneurship is
stifled and only semi-government players can survive," he says.

 

"The question is, after the whole thing is over how many smaller players are
left?" asks Mr Tan.

 

Global food prices are expected to remain high this year and the FAO's David
Dawe says this is of concern for Asian governments because price hikes have
not yet worked their way through the system.

 

"If global prices continue to rise, there will be an impact, especially for
lower income families who spend bigger proportion of their income on food."

 

Economists like Mr Dawe and Dr Abiad remain optimistic that Asian countries
will continue to be shielded from double-digit food inflation.

 

But for those on the ground, like Mr Tan and Ms Ng, the issue feels more
acute. They wonder whether higher prices, rather than being transitory, will
linger on just as the pandemic has.-BBC

 

 

 

Asia stocks make tentative gains, Brent tops $91

(Reuters) - Asian shares swung higher on Monday as Wall Street futures
stabilised, though tests loom ahead as UK interest rates are expected to
rise this week and surging oil prices add to worries over inflation.

 

Data out on Sunday showed China's factory activity slowed in January as a
resurgence of COVID-19 cases and tough lockdowns hit production and demand.
read more

 

The standoff over Ukraine remains a thorn in the market's side, with
concerns a Russian invasion would also cut vital gas supplies to western
Europe. read more

 

Lunar New Year holidays made for thin conditions and MSCI's broadest index
of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) nudged up 0.6% in slow
trade.

 

Japan's Nikkei (.N225) bounced 1.3% from a 14-month trough, though local
data on industrial output and retail sales undershot forecasts.

 

S&P 500 futures and Nasdaq futures recouped early losses to rise 0.3%, while
EUROSTOXX 50 futures rallied 1.2% and FTSE futures 0.6%.

 

The Bank of England is likely to hike rates again this week, continuing the
global trend toward tighter policy. The European Central Bank also meets but
is expected to stick to its argument that inflation will recede over time.
read more

 

Markets have swung to pricing in five hikes from the Federal Reserve this
year to 1.25% , though investors still see rates peaking at a historically
low 1.75-2.0%.

 

Analysts at BofA think that is not nearly hawkish enough.

 

"We point out that markets have underpriced Fed hikes at the start of the
last two hiking cycles and we think that will be the case again," says BofA
chief economist Ethan Harris.

 

"Starting in March, we expect the Fed to start raising rates by 25bp at
every remaining meeting this year for a total of seven hikes, with four more
hikes next year," he adds. "This would take the terminal rate to 2.75-3.00%
by the end of 2023, which should slow down growth and inflation."

 

The Fed diary is rather sparse this week with only three regional presidents
scheduled to speak, but there is plenty of data highlighted by the ISM
readings on manufacturing and services, and the January jobs report.

 

The headline payrolls number is expected to be soft given a surge in
coronavirus cases and adverse weather. The median forecast if for a rise of
just 155,000, while forecasts range from a gain of 385,000 to a drop of
250,000.

 

"We expect nonfarm payrolls to rise by only 50,000 in January and for the
unemployment rate to hold steady at 3.9%," said analysts at Barclays in a
note.

 

"We see downside risk to our forecast given the 8.8 million adults that were
not working during the week of Jan. 11 in order to care for someone sick, or
they themselves were sick."

 

The hawkish turn by the Fed has seen U.S. 10-year Treasury yields spike 27
basis points this month to 1.78%, making bonds relatively more attractive
compared to equities and particularly growth stocks with stretched
valuations.

 

It has also bolstered the U.S. dollar, which has jumped 1.7% so far this
month against a basket of its main rivals to the highest since July 2020 and
was now at 97.167 .

 

The euro shed 1.7% last week,, dropping to its weakest since June 2020, and
was last trading at $1.1157 . The dollar even gained on the safe haven yen,
rising 1.3% last week, to stand at 115.53 yen .

 

Higher yields have been a deadweight for gold, which pays no return, and the
metal was down at $1,787 an ounce , having shed 2.4% last week.

 

Oil prices were near seven-year peaks having climbed for six weeks straight
as geopolitical tensions exacerbated concerns over tight energy supply.

 

Brent rose another $1.18 to $91.21 a barrel, while U.S. crude added $1.15 to
$87.97.

 

The Thomson Reuters Trust Principles.

 

 

 

Elliott and Vista nears $13 billion deal to buy Citrix - source

(Reuters) - Elliott Management Corp and Vista Equity Partners are close to
buying Citrix Systems Inc (CTXS.O) in a deal that values the U.S. cloud
computing company at about $13 billion, according to a person familiar with
the matter.

 

The deal, which could be announced as soon as early this week, came after
Elliott and Vista jointly tapped the loan market to fund their cash bid for
Citrix at $104 per share. Once taking Citrix private, Vista plans to merge
it with Tibco, another data analytics software firm it owns.

 

The cash bid comes lower than where Citrix stock closed at $105.55 on
Friday. Still, the price represents a premium to its lows in December.

 

Citrix's products allow employees of companies to access their network
remotely. However, it failed to capitalize on the rise of remote working
during the COVID-19 pandemic because it spent too much on its salesforce and
too little on its distribution partners, Citrix interim Chief Executive
Robert Calderoni said on the company's most recent quarterly earnings call.

 

Citrix, Elliott and Vista did not immediately respond to requests for
comment.

 

Elliott, the hedge fund that has amassed a stake in Citrix, has been looking
for partners to take the company private since last October, sources said.

 

While Citrix has struggled to transition to a subscription-based business,
demand for its cloud services soared during the pandemic as companies
shifted to remote working models.

 

Still, the company reported operating income of $84.5 million in the third
quarter, down from $128.3 million a year ago, as higher operational expenses
weighed.

 

Calderoni took over on an interim basis from David Henshall, who stepped
down last month, having served as Citrix CEO since 2017. Elliott managing
partner Jesse Cohn joined the Citrix board of directors in 2015 and stepped
down last year.

 

The Thomson Reuters Trust Principles.

 

 

 

Japan's factory output dips more than expected as risks emerge

(Reuters) - Japan's factory output shrank for the first time in three months
in December as a decline in machinery production outweighed a small rise in
autos, casting a cloud over the strength of the economic recovery.

 

Retail sales posted their third straight month of year-on-year gains in
December as low coronavirus cases encouraged shoppers. Record infections
this month driven by the Omicron variant, however, are expected to have hit
consumer sentiment.

 

Factory output lost 1.0% in December from the previous month, data showed on
Monday, pulled down by a decline in output of general-purpose and production
machinery, including chip-making equipment and engines used in
manufacturing.

 

That meant that output, which fell faster than the 0.8% decline forecast in
a Reuters poll of economists, dropped for the first time in three months.

 

"Output especially fell among capital goods makers, probably due to the
strong impact from the chip shortages," said Takeshi Minami, chief economist
at Norinchukin Research Institute.

 

"It suggests its impact is widening even though the focus has been on the
car industry."

 

Automakers have been forced to curb production even as demand in key markets
such as China rebounds, while they also have had to contend with soaring
semiconductor demand at consumer electronic companies.

 

Toyota Motor Co (7203.T), the world's biggest car seller, said this month it
expected production to fall short of an annual target of 9 million vehicles
for its current business year that runs until end-March due to the drag from
the chip shortage. read more

 

Last week, motor maker Nidec Corp's (6594.T) third-quarter operating profit
dipped as rising material prices and a shortage of semiconductors squeezed
margins. read more

 

The data showed output growth of cars and other vehicles slowed to 1.5% from
the previous month in December, much weaker than the 43.7% surge in November
and a 15.9% jump in October.

 

Some companies in the car industry had weathered the competition for chip
supply better than others, a government official said.

 

"Procurement is increasing, but the situation is different from firm to
firm," the official said.

 

Manufacturers surveyed by the Ministry of Economy, Trade and Industry (METI)
expected output to grow 5.2% in January and 2.2% in February.

 

The forecasts did not include production cuts made after the Jan. 10 survey
deadline, the official said.

 

OUTLOOK RISKS

 

The world's third-largest economy is projected to expand an annualised 4.5%
in the current quarter, a Reuters poll showed this month, but some
economists warned of downside risks to the rosy projections. read more

 

First-quarter growth faced a hit to private spending from the coronavirus
spread and declines in car output, said Yoshiki Shinke, chief economist at
Dai-ichi Life Research Institute.

 

"There's a possibility growth will be negative in the January-March period,
though it will depend on the infection situation," Shinke wrote in a report.

 

Separate data showed retail sales were weaker than expected, rising 1.4% in
December from a year earlier, which was smaller than the expected 2.7% rise.

 

That marked the third straight month of increase for sales, which were
lifted by stronger demand for general merchandise and food and beverages,
though year-on-year growth slowed.

 

Japan has seen a surge in COVID-19 cases caused by the Omicron variant in
recent weeks, forcing the government to roll out tighter curbs that now
cover 70% of the country.

 

The Thomson Reuters Trust Principles.

 

 

 

Pearson buys certification group Credly in deal valued at $200m

(Reuters) - Education group Pearson has agreed to buy the certification
company Credly to expand its offering to businesses looking to train and
retain workers at a time of tight labour markets and rapid technological
innovation.

 

The global learning company said on Monday it had agreed to buy Credly in a
deal that valued it at $200 million, in its latest move to respond to the
demand for workforce training in areas like IT. Pearson already owned 20%.

 

The UK-listed firm, a major supplier of courseware and assessments in
schools and colleges in the United States, Britain and around the world,
will have around 1,000 enterprise clients when it adds Credly to its
Workforce Skills division.

 

Pearson CEO Andy Bird told Reuters that verified credentials were becoming
more important as technology adapts, leaving many companies with a skills
gap where staff need training on how to work with processes such as
artificial intelligence.

 

"Showing the world in this new form of digital resumes .. what credentials
you have can make you ultimately either a better employee or more
employable," he said.

 

Pearson, which has been buffeted by the shift from physical courseware to
online learning, bought AI and analytics group Faethm in 2021, which spots
skills gaps for organisations.

 

Credly partners with organisations such as IBM, Microsoft and Amazon Web
Services to provide certifications, or digital credentials, to workers both
inside their firms and out who have attained a certain level with their
product. Based in the United States, half of the people earning credentials
on the platform are outside America, with India one of its biggest markets.

 

Pearson will now be able to combine the diagnostic tools of Faethm with its
own digital learning programmes and Credly's certification capabilities to
offer a full service to companies.

 

Jonathan Finkelstein, founder and CEO of Credly, said the demand for
training and certification had been growing for several years but it had
been accelerated by the pandemic, with the process now helping to retain and
attract workers.

 

More than 2,000 organisations use the platform and it has issued more than
50 million credentials to 25 million people. Its 2021 revenue rose 47% to
$13.3 million. The deal will be funded by cash and available liquidity.

 

 

The Thomson Reuters Trust Principles.

 

 

 

UK businesses scale back pay plans despite higher inflation - Lloyds

(Reuters) - British businesses are scaling back plans for pay rises and
hiring, but almost half intend to increase the prices they charge customers
as they seek to manage rapidly rising costs, a survey showed on Monday.

 

The figures from a monthly Lloyds Bank survey will give mixed signals to the
Bank of England on the persistence of inflation pressures - and the extent
to which they will hamper growth - as it considers a widely expected rate
rise this week.

 

A record 49% of the 1,200 businesses surveyed between Jan. 4 and Jan. 18
said they expected to raise prices, up from 45% in December.

 

But the proportion expecting to raise pay by 2% - well below the current
5.4% rate of inflation - fell to a five-month low of 41% from 48% in
December.

 

The number planning pay rises of 3% fell to 21% from 26% and those share of
those planning 4% pay rises dropped to 12% from 14%.

 

"Businesses remain cautious about the pandemic and are facing into
challenges from rising cost pressures although many are raising their prices
in response," Lloyds Bank economist Hann-Ju Ho said.

 

Overall confidence slipped from December and hiring intentions were the
lowest since August - although 46% of firms still plan to increase their
headcount over the next 12 months.

 

A monthly survey from the Confederation of British Industry on Sunday showed
that private-sector growth in the three months to January was the weakest
since April, reflecting a big hit to many firms from a wave of Omicron cases
in December and January. 

 

The Thomson Reuters Trust Principles.

 

 

 

T-Mobile to terminate corporate employees who aren't vaccinated by April
-memo

(Reuters) -  T-Mobile US Inc (TMUS.O) will fire corporate employees who are
not fully vaccinated against COVID-19 by April 2, according to an internal
company memo posted on the blog The T-MO Report.

 

The blog said T-Mobile's new policy was announced on Friday in an email from
its human resource chief to all staff. It follows a U.S. Supreme Court
ruling on Jan. 13 that blocked President Joe Biden's COVID-19
vaccination-or-testing mandate for large businesses.

 

"Employees who have not yet taken action to receive their first dose and
upload proof by February 21 will be placed on unpaid leave," the blog quoted
the memo as saying. "Affected employees who do not become fully vaccinated
... by April 2 will be separated from T-Mobile."

 

The memo, addressed to "all employees (excluding international)," stated
that the vaccine rules do not apply to field technicians and most in-store
retail roles.

 

In a statement on Saturday, T-Mobile said "we are requiring office workers
(with limited exception for certain roles, locations and legally mandated
accommodations and exemptions) to be fully vaccinated by April 2." It added
that "badge-controlled offices continue to be accessible only to those who
are vaccinated against COVID-19."

 

The Thomson Reuters Trust Principles.

 

 

 

Macau Legend shares fall over 20% after CEO's arrest

(Reuters) - Shares of Macau Legend , which owns and operates a casino resort
in Macau, fell more than 20% to an all-time low on Monday after its chief
executive was arrested and detained by police in the world's largest
gambling hub.

 

CEO Chan Weng Lin's arrest comes as authorities have stepped up a crackdown
on illicit capital outflows from the Chinese mainland, where all forms of
gambling are illegal, and after the high profile arrest of Suncity boss
Alvin Chau in November.

 

Macau Legend reported Chan had been arrested in a statement to the Hong Kong
stock exchange on Sunday, adding it did not expect any adverse impact from
this on its daily operations.

 

Chan owns around a third of Macau Legend, which runs three casinos under a
service agreement with SJM Holdings (0880.HK) and owns the Fishermans Wharf,
an entertainment complex near the Macau ferry terminal. He is also chairman
of Tak Chun Group, Macau's second-biggest junket operator after Suncity.

 

Tak Chun did not immediately respond to a request for comment. Reuters was
unable to reach Chan separately.

 

Apart from Chan, police have also arrested one other man for alleged illegal
gambling and money laundering. read more

 

Analysts say the arrests herald a new era of zero tolerance of the promotion
of gambling in China.

 

"We believe the investor base has become well aware that VIP is no longer
the segment that matters," George Choi, an analyst at Citibank in Hong Kong
said in a note on Monday.

 

"The Macau government's recent clarifications on amendments to the gaming
law signal that the government remains supportive of sustainable development
of the mass segment."

 

The mass segment refers to the mass market gamers, or mom-and-pop players,
not the high rollers.

 

Junket operators have traditionally offered easy credit to mainland Chinese
high rollers, who play in Beijing-ruled Macau's casinos and collect on their
debts using underground financing channels.

 

Now nearly non-existent, the opaque VIP industry made up more than
two-thirds of Macau's gambling revenue until just a few years ago.

 

Police said the latest arrests were linked to the Suncity case in November
as the two groups - Suncity and Tak Chun -worked together, engaging in
"illicit and criminal activities".

 

Suncity and Tak Chun have been the top two junket firms in Macau, employing
thousands, but data from Macau's gambling regulator shows the number of
licensed junkets has shrunk 46% over the past 12 months.

 

The Thomson Reuters Trust Principles.

 

 

 

Chinese developer Shimao shares rise nearly 5% after more asset disposals

(Reuters) - Shares of cash-strapped Shimao Group (0813.HK) rose on Monday
after the Chinese developer and its chairman sold a Shanghai hotel and a
stake in a Hong Kong development, respectively, for a total of $836 million,
in their latest efforts to raise funds.

 

The disposals come after Shimao put up its assets worth 77 billion yuan
($12.11 billion) for sale to raise cash to repay its debts, offloading two
other assets in the past two weeks for 3 billion yuan.

 

The Shanghai-based developer said late on Friday it sold Hyatt on the Bund
to state-owned Shanghai Land (Group) Co for 4.5 billion yuan. read more

 

Its chairman Hui Wing Mau also sold his 40% stake in a Hong Kong high-end
residential development to Hong Kong investors CSI Properties (0497.HK) and
C C Land Holdings (1224.HK) for HK$1.05 billion ($134.68 million), according
to separate statements from the buyers late on Friday.

 

Chinese state-owned property firms are expected to acquire more assets from
private developers facing tight liquidity, analysts said, as Beijing steps
up efforts to stabilise and tighten control over a crisis-hit sector that
accounts for a quarter of its economy. read more

 

Financial media outlet Cailianshe reported over the weekend a state-owned
healthcare real estate firm in the northeastern province of Shandong may
become China Aoyuan Group's (3883.HK) controlling shareholder, and it has
completed the preliminary due diligence.

 

Shares of Shimao gained 4.8%, while Aoyuan rose 6.8%. The Hang Seng Mainland
Properties Index (.HSMPI) was up 2.2%.

 

($1 = 6.3605 Chinese yuan)

 

($1 = 7.7962 Hong Kong dollars)

 

 

 

Italy's Treasury pushing for CEO change at Monte dei Paschi - sources

(Reuters) - Italy's Treasury is pushing for a change at the helm of Monte
dei Paschi (MPS) (BMPS.MI) of which it owns 64%, as the bailed-out lender
gears up to tap markets for cash, three sources close to the matter said.

 

The Treasury late last year refused to meet terms set by Italy's
second-biggest bank UniCredit (CRDI.MI) to agree to an acquisition of its
ailing rival, in a setback for Rome's re-privatisation plans.

 

 

The collapse of talks with UniCredit has prompted the Treasury to seek an
extension of an end-2021 deadline to return MPS into private hands.

 

Italy is currently discussing with European Union competition authorities a
new restructuring plan for MPS and a new deadline which sources have told
Reuters will be past 2023.

 

In the meantime, however, MPS must raise cash by selling new shares to
bolster its capital reserves after emerging as the most vulnerable euro zone
lender in last summer's industry stress tests run by European banking
supervisors.

 

 

The sources said the Treasury had stepped up pressure on MPS CEO Guido
Bastianini to quit after the failure of the UniCredit negotiations.

 

The sources said Bastianini had been informed earlier this month of the
Treasury's intentions, but was resisting pressure to step down. MPS declined
to comment. The Treasury did not reply to a request for comment.

 

MPS, which is Italy's fourth-largest bank, has said it has plans to raise
2.5 billion euros from a new share sale this year.

 

 

Italy, which rescued MPS in 2017 at a cost to taxpayers of 5.4 billion
euros, will pump more money into it under the cash call, but EU rules on
state aid for banks require MPS also to secure a contribution from private
investors.

 

Deemed too big to be wound down by regulators, MPS has been for years at the
fore of Italy's banking crisis.

 

The Thomson Reuters Trust Principles.

 

 

 

Oil rises, heads for best month since Feb 2021 on supply concerns

(Reuters) - Oil rose more than 1% on Monday to near 7-year highs hit in the
previous session, while supply concerns and political tensions in Eastern
Europe and the Middle East put prices on track for their biggest monthly
gain in almost a year.

 

Brent crude rose $1.07, or 1.2%, to $91.10 a barrel at 0325 GMT, after
adding 69 cents on Friday. The front-month contract for March delivery
expires later in the day.

 

The most-active Brent contract, for April delivery , was trading at $89.51,
up 99 cents or 1.1%.

 

U.S. West Texas Intermediate crude added $1.07, or 1.2%, to $87.89 a barrel,
having gained 21 cents on Friday.

 

The benchmarks recorded their highest levels since October 2014 on Friday,
$91.70 and $88.84, respectively, and their sixth straight weekly gain. They
were headed for about 17% gains this month, the most since February 2021.

 

"Underlying anxiety about global supply shortages, coupled with ongoing
geopolitical risks, have caused the market to start the week on a strong
note," said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd.

 

"With an expectation that OPEC+ will keep the existing policy of gradual
increase of production, oil prices will likely stay on a bullish sentiment
this week," he said, predicting Brent to remain above $90 and WTI to head
toward $90.

 

Major producers in the Organization of the Petroleum Exporting Countries
(OPEC) and allies led by Russia, collectively known as OPEC+, have raised
their output target each month since August by 400,000 barrels per day (bpd)
as they unwind record production cuts made in 2020.

 

But they have failed to meet their production targets as some members have
struggled with capacity constraints.

 

At its Feb. 2 meeting, OPEC+ is likely to stick with a planned rise in its
oil output target for March, several OPEC+ sources told Reuters. read more

 

OVERHEATING

 

Oil prices are showing signs of overheating as traders anticipate a severe
shortage of petroleum this year, Reuters columnist John Kemp said, noting
that inventories were already low and there was little global spare capacity
to raise production in the short term. read more

 

According to ANZ Research, with the market in deficit and inventories low,
"supply constraints will likely induce a sizeable risk premium" as travel
picks up.

 

"Traffic in Europe is rebounding as the Omicron case numbers decline. In the
U.S., gasoline demand is only 4% below 2019 levels, which is a better
outcome than expected in November," it said in a note.

 

Tensions between Russia and the West have also underpinned crude prices.
Russia, the world's second-largest oil producer, and the West have been at
loggerheads over Ukraine, fanning fears that energy supplies to Europe could
be disrupted.

 

The head of NATO said on Sunday that Europe needs to diversify its energy
supplies as Britain warned it was "highly likely" that Russia was looking to
invade Ukraine. read more

 

The market is on alert over the Middle East situation too after the United
Arab Emirates said it had intercepted a ballistic missile fired by Yemen's
Houthi as the Gulf state hosted Israel's President Isaac Herzog in a first
such visit.

 

Meanwhile, more than 1,400 U.S. flights were cancelled on Sunday after the
U.S. northeast states were walloped a day earlier by a deadly winter storm
that prompted several states to declare emergencies. read more

 

The Thomson Reuters Trust Principles.

 

 

 

China's Evergrande seeks legal advice over HK rural plot

(Reuters) - China Evergrande Group said on Sunday that recievers have been
appointed for a plot of undeveloped land in Hong Kong's rural Yuen Long
district, in the latest development to hit the debt-laden developer.

 

A source with direct knowledge said the creditor is Oaktree. However
Evergrande did not mention the name in the statement.

 

The assets are charged as security for a financing transaction for $520
million advanced to the group in January 2021, Evergrande said in a filing
to the Hong Kong stock exchange.

 

"The company is seeking legal advice to protect the legal rights of the
company. At the same time, the company is in active discussions with the
lender on resolving the matter with a view of reaching a resolution thereby
maximising the return to the group."

 

If there is residual value on the assets after the secured obligations have
been discharged, Evergrande said it would give priority to offshore affairs.

 

It said the appointment of receivers for the subsidiaries and the potential
sale of the relevant secured assets "would not have material impact on the
operations or financial position of the group, nor affect the group’s
ongoing debt restructuring exercise."

 

Evergrande said on Wednesday it aims to have a preliminary restructuring
proposal in place within six months as it scrambles to reassure creditors
spooked by defaults since its finances began to unravel last year. read more

 

The Thomson Reuters Trust Principles.

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2022

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

PPC

 

 


Starafrica

Fidelity

Turnall

 


Medtech

Zimre

Nampak Zimbabwe

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


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