Major International Business Headlines Brief::: 01 June 2022
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Major International Business Headlines Brief::: 01 June 2022
<https://www.nedbank.co.zw/>
ü Shanghai lockdown: China eases Covid restrictions after two months
ü Crown Resorts: Casino firm fined over illegal China dealings
ü UK in talks to reopen giant gas storage facility for winter
ü Missguided fast fashion brand collapses
ü Sri Lanka urges farmers to plant more rice amid crisis
ü Russian gas firm Gazprom to cut some supply to Shell
ü Cancelled flights: Travel firms have oversold flights and holidays - Shapps
ü Oil price rises as EU cuts Russian imports
ü Russian oil: EU agrees compromise deal on banning imports
ü French officials told to abandon gaming Anglicisms
ü Nigeria: Foreign Capital Inflow Rises 60 Percent to $610m, Outflow Rises Faster
ü Nigeria: Food, Beverage Sector Bleed From Decaying Infrastructure, Others - Employers
ü Ghana: Digital Leadership in the 21st Century Is a Must - VP Bawumia
ü Nigeria: Namibia Pushes for Improved Bilateral Relationship With Nigeria
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Shanghai lockdown: China eases Covid restrictions after two months
The Chinese city of Shanghai, the country's economic centre and a global trade hub, has eased Covid curbs after a two-month lockdown.
At midnight local time (16:00 GMT Tuesday), restrictions were relaxed to allow most people to move freely around the city of some 25 million people.
But at least 650,000 residents will remain confined to their homes.
China's overall policy of "zero Covid" remains in place and people catching Covid face quarantine or hospital.
Their close contacts also face the prospect of removal to quarantine and the area immediately around where they live being locked down again.
"This is a day that we dreamed of for a very long time," Shanghai government spokeswoman Yin Xin told reporters.
"Everyone has sacrificed a lot. This day has been hard-won and we need to cherish and protect it, and welcome back the Shanghai we are familiar with and missed."
But there are new rules too: residents are required to show a green health code on their smartphone to leave their home compounds or buildings and access most places; those who want to use public transport or go to the banks, malls etc must have a negative PCR test certificate valid in the last 72 hours; and restrictions on leaving Shanghai remain, with anyone travelling to another city facing quarantine of 7-14 days on their return.
But that didn't stem the relief people felt.
Cheers and sounds of jubilation rose as the clock struck midnight on Tuesday, signalling the end of the lockdown. Groups of Shanghai residents gathered on street corners, singing and toasting with drinks as they welcomed their newfound freedom.
"We were locked down too many days. We need to celebrate. Not just me - all the Shanghai people here," one resident told the BBC. "All the bad things [have] gone past, so tomorrow will be fine."
"We are free. I am so happy, I want to work. I want to work tomorrow," said another.
The lockdown has seen many residents lose income, struggle to find enough food and cope mentally with prolonged isolation.
Manufacturers including Western car makers Volkswagen and Tesla have been particularly impacted by the restrictions as staff were kept away from factories or had to work in "closed loop" conditions, where they lived at the plants.
On Wednesday, cautious signs of life appeared to be returning to the city. Men in buttoned down shirts walked into flashy office towers - but not in the same numbers as before the outbreak, with many firms enforcing a staggered return to work.
Joggers, cyclists, skaters and dog walkers defied the muggy heat to take over riverfront parks for a much-awaited breath of fresh air.
A basic service resumed on public transport, and shops opened with larger ones operating at 75% capacity. Cinemas, museums and gyms remain closed. Most children will also not return to face-to-face schooling.
The city also has a 50-point plan aimed at revitalising its economy, which before the lockdown was worth more than $600bn (£475bn). The new measures include reducing some taxes for car buyers, speeding up the issuance of local government bonds and fast-tracking approvals of building projects.
Big bang for Shanghai
It was supposed to last just nine days -a staggered lockdown to lessen the impact on Shanghai's economy, state media said.
It lasted 65 days. It crippled the city and scarred its people.
Restrictions are now being eased as quickly as they were imposed. There's no gradual process over several weeks. Instead there's a big bang - one day when most of the emergency rules and regulations are simply being lifted.
The relief is immense - for generations of some families who've lived together behind a locked front door for more than two months; for workers who've lived in tents inside factories where they've carried on working; for the shop and restaurant owners whose livelihood ground to a halt; for the thousands of people forced to leave their homes and sent to quarantine centres.
And for the almost 25 million people who live here.
The rigidity of the lockdown caused much frustration in the city, often sparking anger on social media.
"Shanghai is such a good place… but with all production, all business paused for two months?!" a woman in her 50s from Shanghai told the BBC. "I hope these will all be resumed soon. I want my prosperous Shanghai city back."
China has registered at least 14,604 deaths and 2,426,568 cases of Covid during the pandemic, with nearly 90% of its population fully vaccinated.
Chinese state media however has downplayed news of people welcoming and celebrating the end of the full lockdown - authorities had always been reluctant to define the restrictions as a "lockdown".
So the media described Wednesday as "a new start" and "the day of completely getting back to normal life, work and production".-BBC
Crown Resorts: Casino firm fined over illegal China dealings
Australian gaming operator Crown Resorts has been fined A$80m ($57.4m; £45.6m) for illegally accepting Chinese bank cards at its casino in Melbourne.
Regulators say the transactions were falsely classified as hotel services.
To deter money laundering and excessive gambling casinos in Australia are not allowed to accept bank cards.
Crown acknowledged its "historic failings" and says its top executives were in the process of reforming how the company operates.
On Monday, the Victorian Gambling and Casino Control Commission (VGCCC) said Crown had breached Australia's casino regulations by allowing gambling funds to be withdrawn using credit or debit cards.
The regulator found that Crown had processed A$164m Australian dollars in China UnionPay card payments, drawing in A$32m of revenue in the process, between 2012 and 2016.
It said the transactions were falsely classified as "services" provided by the Crown Towers hotel in Melbourne.
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However, patrons were given vouchers that could be exchanged for cash or chips at Crown's neighbouring casino.
According to the regulator, the "clandestine" scheme also allowed some Chinese nationals to spend more in foreign currencies than was allowed under Chinese law.
"Crown benefited handsomely from its illegal conduct," VGCCC chairwoman Fran Thorn said in a statement.
"The fine will ensure that Crown is stripped of the revenue it derived from the process and will send a clear message that it must comply with its regulatory obligations," Ms Thorn added.
In response, the gaming group said its board and senior management were "committed to the delivery of a comprehensive reform and remediation programme to ensure Crown delivers a safe and responsible gaming environment".
Crown - which operates integrated resorts in Melbourne, Perth and Sydney - is also under scrutiny from regulators who have alleged the company had knowingly dealt with criminal organisations then misled authorities about those dealings.
Its casino in Melbourne is currently only allowed to operate under the supervision of a government-appointed manager.-BBC
UK in talks to reopen giant gas storage facility for winter
The government is in talks with energy firm Centrica about re-opening a giant gas storage facility in case European supplies from Russia are cut off.
The discussions form part of contingency plans being exploring ahead of winter amid the war in Ukraine.
Centrica's facility in Yorkshire was mothballed in 2017 when the government refused to subsidise it.
The BBC understands the government may now be prepared to contribute to re-establishing a strategic gas reserve.
The talks are part of plans for a "reasonable worst case scenario" in which Russia shuts off all gas supplies to Europe resulting in Norwegian gas supplies being redirected from the UK to Europe.
Those plans also include extending the life of the few remaining coal fired power plants in the UK. Business Secretary Kwasi Kwarteng wrote to the owners EDF, Drax and Uniper in April and on Friday of last week instructed National Grid's Electricity System Operator to explore what would be needed to extend production.
The government has also been in touch with EDF to see what scope was available to extend the life of Hinkley Point B, a nuclear plant in Somerset.
The UK gets a very small amount from natural gas from Russia but is reliant on Norway for a third of supplies. There are concerns that if Russia cuts off supplies to the European Union or the bloc boycotts supplies because of the Kremlin's attack on Ukraine, Norwegian supplies might be diverted.
The EU relies on Russia for 40% of its gas supplies.
The UK also imports liquified natural gas (LNG) from Qatar and the US.
There has been a glut of liquefied natural gas arriving in the UK in recent weeks as suppliers use the UK's terminals as a hub for deliveries to Europe. Tankers have been turned away as there is nowhere to store it.
At full capacity, Centrica's facility in Rough, Yorkshire can store between 10 and 12 days' worth of the UK's gas needs. Industry experts say that if they started work now, it might be able to hold up to six days' worth of the UK gas demand by this winter.
It was shut five years ago when Centrica told the government that the £2bn-£3bn worth of investment needed to extend its life made no economic sense to a private company.
At the time, the government declined to subsidise the facility telling Centrica "if the market doesn't think it makes sense - neither does the government", according to a company insider.
Government sources indicated that there was a low probability that Russia would cut off all gas supplies to the EU or Norway would divert supplies from the UK.
They pointed out that many Norwegian gas sources are directly connected to the UK and could not be diverted.
Nuclear power
Another power source could be the Hinkley Point B nuclear plant which has already had its life extended from an original decommissioning date of 2011 and was due to come off line in July of this year.
An EDF insider told the BBC it would not be without cost and the timing was very tight.
"Extending anything costs more in terms of investment, just like deciding to get your car through the next MOT but nuclear has the added safety case dimension," he said. "So it is not necessarily easy and given the closure date is July 2022, that's very soon to change direction when they are planning on closing in a few weeks."
The BBC understands there has been no formal request to EDF from the government which is waiting for evidence on the business case and the safety implications of such an extension.
A spokesperson for The Office for Nuclear Regulation (ONR) said: "Any extension to the operating life of a nuclear power station would need a robust safety case produced by the operator to demonstrate that the plant is safe to run for any extended period.
"This evidence would then be thoroughly assessed by a team of expert ONR inspectors."
Talking to Times Radio, government minister Chris Philp described the contingency plans as "a sensible precautionary measure given that the gas supply coming out of Russia and Ukraine is, for obvious reasons, so heavily disrupted and we do, of course, use quite a lot of gas to generate electricity."
He added: "A lot of ours comes from Norway and in the form of liquified natural gas, but of course disruption to the global gas market will have a "knock on effect" on the UK."-BBC
Missguided fast fashion brand collapses
Fashion brand Missguided has appointed administrators after suppliers filed to shut it down over unpaid debts.
The retailer with about 330 staff has asked Teneo Financial Advisory to sell its business and assets.
Missguided has been hit by supply chain costs, rising inflation and "softening" consumer confidence in an increasingly tough market, Teneo said.
One marketing expert said rival brands were better, cheaper and faster and shoppers now care about sustainability.
Catherine Shuttleworth, chief executive of Get Savvy marketing agency added: "The fast fashion shopper is growing up, spending elsewhere and in new categories."
Teneo said Missguided would continue to trade while it looked for a buyer.
Gavin Maher from Teneo said there was "a high level of interest from a number of strategic buyers".
Rival fast fashion brand Boohoo is rumoured to be among potential suitors.
Mr Maher thanked Missguided staff and other key stakeholders for their "support at this difficult time".
Missguided issued with a winding-up petition by creditors
The Manchester-based business was founded by Nitin Passi in 2009. It grew to become one of the UK's biggest online fashion players.
But in the last few years, it has struggled to make a profit and was rescued last autumn by the finance firm Alteri Investors.
Mr Passi stepped down as CEO in April and this administration comes after supplier JSK Fashions issued a winding up petition on 10 May.
Last week, a report in the i newspaper said that three of Missguided's suppliers warned they were at risk of going under due to outstanding payments.
"It's a saying that cash is king in business and if reports are to be believed then that's a factor in Missguided's troubles," said Julie Palmer, partner at insolvency firm Begbies Traynor.
"If true, tales of suppliers being asked to give discounts, or struggling to extract payment, point to a company facing a cash flow crisis," she said.
The cost-of-living crisis means shoppers are reining in spending on non-essentials like the fast fashion Missguided offers, she said.
"While Missguided boomed when we were locked down with no opportunity to spend wages going out, the harsh realities of post-pandemic life are becoming clear," she said.
"Rising inflation and worries about the potential for a recession mean that people just aren't willing to spend on what they don't need.
"Hopefully a buyer will see the potential in this company that means its suppliers continue to find an outlet for their products."
Catherine Shuttleworth, chief executive of Get Savvy marketing agency, said the fast-fashion industry as a whole was under huge cost pressures.
But it was also having to work harder to engage with shoppers who were increasingly focused on sustainability.
"The cost-of-living squeeze is starting to make a difference to younger shoppers meaning they are going out less, and spending less on clothing they just aren't engaging with fast fashion brands in the way they used to be."
She added: "The bottom line is that Missguided were up against other players who are simply better, cheaper and faster in this space - notably Boohoo."
Online-only retailer Boohoo bought up swathes of High Street stores that collapsed during the pandemic.
Among the many brands it owns are PrettyLittleThing, NastyGal and MissPap, which contribute to the increasing competition faced by Missguided.
But fashion business educator Maria Malone told BBC Radio 5 Live's Wake Up To Money there was also a shift away from throwaway fashion.
"It had a phenomenal rise, sponsoring cultural icons like Love Island," she said. "This year the show is featuring pre-owned clothing. Turning its back on fast fashion, that's the problem really, the customer has changed.
"Its rivals have diversified, Missguided stuck with fast fashion, there's now a movement away from that. At every level of society people are questioning fashion, there's a massive market now in slow fashion, sustainability, up cycling and repairing."
-BBC
Sri Lanka urges farmers to plant more rice amid crisis
Sri Lanka is calling on farmers to grow more rice as it faces its worst economic crisis in more than 70 years.
The country's agriculture minister made the appeal as he said the country's "food situation is becoming worse".
It comes as severe shortages of essentials, including food, helped to push inflation, the rate at which prices rise, to a new record high.
Also on Tuesday, the government raised taxes to help pay for critical purchases, including fuel and food.
The island nation of 22 million people has been hit hard by the pandemic, rising energy prices, and populist tax cuts.
A chronic shortage of foreign currency and soaring inflation has also led to a shortage of medicines, fuel and other essentials.
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Agriculture minister Mahinda Amaraweera told journalists "it is clear the food situation is becoming worse".
"We request all farmers to step into their fields in the next five to ten days and cultivate paddy [rice]," he added.
Sri Lankan officials have been looking for ways to boost food production, as Prime Minister Ranil Wickremesinghe has warned of severe food shortages by August.
The country is also applying for assistance from a South Asian food bank, which has supplied rice and other goods to countries in need, the Financial Times newspaper reported.
Food commissioner J Krishnamoorthy told the newspaper in an interview that her department had "just started the process" of asking the South Asian Association for Regional Cooperation (SAARC) for "food bank assistance".
Ms Krishnamoorthy added that Sri Lanka was seeking around 100,000 metric tonnes of food in the form of donations or subsidised sales.
The SAARC is a grouping of eight countries in South Asia. It includes Sri Lanka and India, which is emerging as one of Sri Lanka's biggest providers of aid.
Sri Lanka's Food Commissioners Department and the SAARC did not immediately respond to BBC requests for comment.
On Tuesday, the Sri Lankan government announced an immediate increase to value added tax (VAT) from 8% to 12%. The move is expected to boost government revenue by 65bn Sri Lankan rupees ($179.9m; £142.7m).
It also said corporate tax would rise in October from 24% to 30%.
Earlier this year, then-Sri Lankan financial minister Ali Sabry told the BBC that he saw a need to raise VAT.
He added that the nation needed $4bn (£3.2bn) over the next eight months to pay for imports of daily essentials.
Also on Tuesday, official figures showed that Sri Lanka's rate of inflation rose to a record 39.1% in May, from a year ago. It had reached a previous high of 29.8% in April.
Inflation reduces the purchasing power of money since more money is now needed to buy the same items.
High rates of inflation mean that unless income increases at the same rate, people are worse off. This may cause them to spend less as they make fewer purchases from businesses.
Last month, Sri Lanka defaulted on its debt for the first time in history, when grace period to come up with $78m of unpaid debt interest payments expired.
Defaults happen when governments are unable to meet some or all of their debt payments to creditors.
It can damage a country's reputation with investors, making it harder for it to borrow the money it needs on international markets, which can further harm confidence in its currency and economy.-BBC
Russian gas firm Gazprom to cut some supply to Shell
Shell has said it will work to keep gas flowing to its customers in Europe after Russian energy firm Gazprom said it would cut supplies from tomorrow.
Gazprom said it would halt gas to Denmark's Orsted and to Shell for its contract to supply gas to Germany, after both refused to make payments in roubles, Reuters reported.
Shell told the BBC it would continue to get gas from its other sources.
The gas giant said it would continue to phase out Russian fossil fuels.
The move by Gazprom comes after European Union leaders said they will block most Russian oil imports by the end of 2022 to punish Moscow for invading Ukraine.
In response to Western sanctions, Russia has already cut off gas supplies to Poland, Bulgaria, Finland and the Netherlands, after the countries refused to comply with Russian demands to switch to payment in roubles.
The latest move expands that retaliation to Germany and Denmark.
Vladimir Putin's decree has been seen as an attempt to boost the Russian currency, which has been hit by sanctions, as more foreign exchange demand for roubles is likely to increase demand and push up its value.
Shell told the BBC it had not agreed to "new payment terms set out by Gazprom", which included the creation of Russian bank accounts.
"We will work to continue supplying our customers in Europe through our diverse portfolio of gas supply," a spokesman said.
"Shell continues to work on a phased withdrawal from Russian hydrocarbons, in compliance with applicable laws and regulations."
Meanwhile, Orsted said on Monday that Gazprom stopping gas flows would put Denmark's supplies at risk.
Shell has taken a hit of $5bn (£3.8bn) from offloading its Russian assets as part of its plans to withdraw sever ties with the country. It also confirmed it had quit its joint ventures with Gazprom.
The firm pledged in April to no longer buy oil from Russia, but said contracts signed before the invasion of Ukraine would be fulfilled.
Shell was criticised when it bought Russian crude oil at a cheap price shortly after the war began.
Higher prices
The war in Ukraine has pushed countries in the West to phase out Russian energy supplies.
Europe gets about 40% of its natural gas from Russia, which is also the bloc's main oil supplier, but some countries are more dependent Russian fossil fuels than others, so sudden supply cuts could have huge economic impact.
Nathan Piper, head of oil and gas research at Investec, said it was "clear" that European countries and companies was want to reduce imports of Russian fossil fuels.
However he warned of the "ongoing risk that efforts to reduce Russian oil and gas imports results in higher oil and gas prices", limiting the impact on Russia.
"Russian volumes may gradually be reduced but they are 'compensated' by higher overall prices," he added.
He said the geopolitical tensions were set against "an already tight oil and gas market prior to the invasion of Ukraine".
Russia gas exports
Countries have been filling gas storage sites ahead of winter due to the threats of Russian supply cuts.
So far, no sanctions on Russian gas exports to the EU have been put in place, although plans to open a new gas pipeline from Russia to Germany have been frozen.
Meanwhile the EU leaders have agreed an immediate ban on Russian oil being transported into the bloc by sea.
In late March, Russia said "unfriendly countries" would have to start paying for its oil and gas in roubles after Western allies froze billions of dollars it held in foreign currencies overseas.
Under the decree, European importers must pay euros or dollars into an account at Gazprombank, the Swiss-based trading arm of Gazprom, and then convert this into roubles in a second account in Russia.
The majority - 97% - of EU companies' gas supply contracts with Gazprom stipulate payment in euros or dollars.-BBC
Cancelled flights: Travel firms have oversold flights and holidays - Shapps
Airlines and operators have "seriously oversold flights and holidays" relative to their capacity to deliver, Transport Secretary Grant Shapps has said.
Mr Shapps said it had been "very distressing" to see people facing more disruption at airports with "holidays cancelled and plans left in disarray".
Passengers are facing travel problems ahead of the Jubilee weekend, with several airlines cancelling flights.
Up to two million people are preparing to fly over the next few days.
The vast majority of flights will be operating as scheduled, said Airlines UK which represents Tui, EasyJet and British Airways.
Mr Shapps said the government had been clear that it was up to industry leaders to tackle travel disruption, which was also seen at Easter.
The transport secretary said he would meet with airports, airlines and ground handlers to "find out what's gone wrong and how they are planning to end the current run of cancellations and delays".
"Despite government warnings, operators seriously oversold flights and holidays relative to their capacity to deliver. This must not happen again and all efforts should be directed at there being no repeat of this over the summer - the first post-Covid summer season," he added.
Passengers are facing ongoing disruption ahead of the bank holiday weekend, with holiday giant Tui announcing it will cancel six flights a day until the end of June, affecting around 34,000 travellers in all.
Around 10,000 flights are set to leave the UK between Thursday and Sunday, according to aviation analytics firm Cirium.
Other airlines, including EasyJet, have also cancelled flights, with the aviation industry suffering from staff shortages as it struggles to recruit replacements for the thousands of workers it laid off during the coronavirus pandemic when international travel halted.
Before Covid, airports and airlines across Britain employed around 140,000 people, but since then thousands of jobs have been cut, including around 30,000 for UK airlines alone.
Paul Charles, chief executive of travel consultancy The PC Agency and a former Virgin Atlantic director, said the industry had been "overwhelmed" since demand for flights returned after the pandemic but argued the government itself was "responsible for this chaos".
"[The transport secretary] has got a bit of a nerve I'm afraid," he told the BBC. "It's because of government restrictions that changed so much during the pandemic, and then the shutdown of the industry with the Omicron variant last December, that has created this problem."
He added that without certainty over when travel restrictions would be eased, the industry was not able to recruit more staff.
Kelly Sandhu, from the Aviation Recruitment Network, said the process of hiring new workers took a long time so there was "not a quick fix" .
Airlines UK said the sector had "only a matter of weeks to recover and prepare for one of the busiest summers we've seen in many years" but, despite this, "the vast majority" of flights this week would be operating as scheduled.
Michael Turner, a nurse from Shoreham, is currently on his third attempt to go on holiday with his family to Tenerife.
Due to fly from Gatwick last Thursday, Mr Turner was told his EasyJet flight had been cancelled 20 minutes before departure.
He rebooked a Tui flight which was all that was available and said he experienced "absolute chaos" in the departure lounge at Manchester Airport.
After boarding the plane, Mr Turner said they spent three hours waiting only to be then escorted off to collect their baggage.
They were put on a coach without being told where they were going and then waited to be taken back to the airport for a flight on Tuesday evening.
line
Manchester Airport said Tui and Swissport, which provides ground services such as baggage handling, were "experiencing temporary staff shortages, in common with other aviation and travel companies".
A spokesperson for Swissport apologised for its part in any disruption, adding that the return of demand for flights was "exacerbating resource challenges across the aviation industry".
Elsewhere, Glasgow Airport said the airport had been "busier than it has been for more than two years", while at Edinburgh Airport some passengers had to queue outside the terminal building to check in luggage.
Prospect, the union which represents staff across air traffic control and in aviation engineering, warned that things could "get worse before they get better".
Garry Graham, its deputy general secretary, said that while the furlough scheme had helped people, the government had ignored that it "ended well before the majority of international restrictions on travel came to an end".
But Mr Shapps said the government had helped the industry through "changing the law to speed up bringing in newly recruited staff" as well as providing £8bn of support during the pandemic.
The Airport Operators Association, which represents the industry, said big recruitment campaigns had been under way since before the start of this year and additional staff were now being deployed.-BBC
Oil price rises as EU cuts Russian imports
Oil prices have hit fresh highs after European Union leaders agreed on a plan to block more than two-thirds of Russian oil imports.
Brent crude rose above $123 a barrel on Tuesday, the highest it has been for two months.
Prices for oil and gas have soared in recent months, fuelled by the lifting of lockdowns and the Ukraine war.
Rising energy costs are putting pressure on consumers, making it more expensive to heat homes and drive.
Petrol hit a new record of 173.02p a litre on Monday, according to the AA.
At the same time, the average price of diesel in the UK rose to 182.58p a litre, it said.
Filling a typical 55-litre tank of a diesel now costs more than £100.
The war in Ukraine has pushed countries in the West to shun Russian energy supplies.
Russia currently supplies 27% of the EU's imported oil and 40% of its gas. The EU pays Russia around €400bn (£341bn) a year in return.
The ban agreed by EU leaders will see an immediate ban on Russian oil being transported into the bloc by sea. Two-thirds of Russian oil arrives by sea.
However, the deal, which followed weeks of wrangling, includes a temporary exemption for pipeline oil following opposition from Hungary.
Pledges by Poland and Germany to stop importing pipeline oil by the end of this year will raise coverage of the ban to 90% of Russian imports.
Tough times
Brent crude, the global benchmark for oil prices, has risen more than 70% over the past year.
Oil prices climbed again on news of the EU embargo, with Brent crude reaching its highest level since March.
Russ Mould, investment director at AJ Bell, said confirmation that the EU will cut its purchases of Russian oil by the end of 2022 is pushing up prices because European countries now need to find alternative sources of supply.
"It is not feasible to replace that amount of energy with other fuel sources, such as wind, solar, biomass or nuclear, in such a short space of time, so the EU needs to find oil and gas from somewhere," Mr Mould said.
"This will not be easy because existing global output may well be on contract already, so competition for what is not on contract will now be hotter."
Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said the upwards trajectory of oil prices may continue until Western countries outline clearly how supply is going to be sourced.
"It's possible this could get tougher before it gets better," she said.
"We know that rising energy costs are a particular challenge for households which already have severe pressure on their incomes, but smaller businesses shouldn't be left out of the equation either - this is a tough time to be heating offices, and at a time when it's meant to be about rebuilding resilience after the pandemic."
European Council chief Charles Michel said the deal cut off "a huge source of financing" for the Russian war machine.
It is part of a sixth package of sanctions approved at a summit in Brussels, which all 27 member states have had to agree on.
So far, no sanctions on Russian gas exports to the EU have been put in place, although plans to open a new gas pipeline from Russia to Germany have been frozen.
EU members spent hours struggling to resolve their differences over the ban on Russian oil imports.
Hungary, which imports 65% of its oil from Russia through pipelines, resisted the new round of sanctions.
The cost of living crisis being felt across Europe has not helped either. Sky-rocketing energy prices - among other things - have curtailed some EU countries' appetite for sanctions which could also hurt their own economies.-BBC
Russian oil: EU agrees compromise deal on banning imports
EU leaders say they will block most Russian oil imports by the end of 2022 to punish Moscow for invading Ukraine.
The EU-wide ban will affect oil that arrives by sea - around two-thirds of imports - but not pipeline oil, following opposition from Hungary.
Poland and Germany have also pledged to end pipeline imports, meaning a total of 90% of Russian oil will be blocked.
European Council chief Charles Michel said the deal cut off a huge source of financing for the Russian war machine.
It is part of a sixth package of sanctions approved at a summit in Brussels, which all 27 member states have had to agree on.
Russia currently supplies 27% of the EU's imported oil and 40% of its gas. The EU pays Russia around €400bn ($430bn, £341bn) a year in return.
Could the world cope without Russian oil and gas?
So far, no sanctions on Russian gas exports to the EU have been put in place, although plans to open a new gas pipeline from Russia to Germany have been frozen.
The UK - which gets 8% of its oil needs from Russia - has pledged to phase out Russian oil by the end of the year.
Oil prices climbed on news of the EU embargo, with Brent crude rising above $123 a barrel, its highest level since March.
EU members spent hours struggling to resolve their differences over the ban on Russian oil imports. Hungary, which imports 65% of its oil from Russia through pipelines, was its main opponent. Hungary's Prime Minister, Viktor Orban, has good relations with Russian President Vladimir Putin.
The compromise followed weeks of wrangling until it was agreed there would be "a temporary exemption for oil that comes through pipelines to the EU", Mr Michel told reporters.
Because of this, the immediate sanctions will affect only Russian oil being transported into the EU over sea - two-thirds of the total imported from Russia.
But in practice, European Commission President Ursula von der Leyen said the scope of the ban would be wider, because Germany and Poland have volunteered to wind down their own pipeline imports by the end of this year.
"Left over is around 10-11% that is covered by the southern Druzhba," Ms Von der Leyen said, referring to the Russian pipeline supplying oil to Hungary, Slovakia and the Czech Republic. The European Council would revisit this exemption "as soon as possible", she added.
A senior EU official confirmed that the three landlocked countries were given an additional guarantee that they could obtain supplies of seaborne Russian oil in the event of an interruption to pipeline supply.
The Russian ambassador to the EU, Vladimir Chizhov, said Brussels had "already approached the limits of what is possible in terms of sanctions".
Speaking to Russian state TV, he predicted "serious problems" if the EU were to try to agree on a gas embargo.
The ban on Russian oil imports was initially proposed by the European Commission - which develops laws for member states - a month ago.
But resistance, notably from Hungary, held up the EU's troubled latest round of sanctions.
Mr Orban declared the agreement a victory for his country, telling Hungarians they could sleep soundly - protected from expensive fuel costs that the embargo would bring to the rest of Europe.
"We succeeded in defeating the proposal of the European Council which would have forbidden Hungary from using Russian oil," he said in a Facebook video.
Other landlocked countries, such as Slovakia and the Czech Republic, also asked for more time due to their dependence on Russian oil. Bulgaria, already cut off from Russian gas by Gazprom, had likewise sought opt-outs.
The cost of living crisis being felt across Europe has not helped either. Sky-rocketing energy prices - among other things - have curtailed some EU countries' appetite for sanctions which could also hurt their own economies.
The EU's oil agreement is a compromise deal - but it's also an important one.
Moscow is heavily reliant on its energy exports, and the EU says this deal will cut more than 90% of Russian oil imports by the end of the year.
But considering all the sabre-rattling and anti-Western rhetoric we've been hearing from Vladimir Putin in recent weeks, I suspect the Russian leader is more likely to say to Europe: "Get ready for some more economic pain because of this embargo. Let's see how long your support for Ukraine lasts."
The Kremlin is aware of the differences of opinion within the EU over what to do about Russia - and you can be sure that Putin is going to try to exploit them.
Russia will look for new markets, but in terms of oil that's not a quick fix. The infrastructure isn't in place to reorient oil exports from Europe to Asia, for example. And if it does sell to Asia - it will have to do so at a discounted price.
There's also the question of Russian gas - an embargo on that could be discussed next.
Ukraine's President Volodymyr Zelensky, who dialled into the summit, urged EU countries to stop their internal "quarrels," stating that they only helped Moscow.
"All quarrels in Europe must end, internal disputes that only encourage Russia to put more and more pressure on you," Mr Zelensky said via video-link.
Latvia's Prime Minister Krisjanis Karins said member countries should not get "bogged down" in their own personal interests.
"It's going to cost us more. But it's only money. The Ukrainians are paying with their lives," he said.
Russia cut off gas supplies to Dutch firm GasTerra on Tuesday for refusing to pay for supplies in roubles. The EU has said paying in Russian currency breaches sanctions and Gazprom has already cut supplies to Poland, Finland and Bulgaria.-BBC
French officials told to abandon gaming Anglicisms
France's language watchdog has told government officials to use French gaming terms instead of English ones.
The Académie Française says "jeu video de competition" should replace "e-sports", and "streamer" should become "joueur-animateur en direct".
France's culture ministry told the AFP news agency that Anglicisms were "a barrier to understanding".
But gamers have criticised the ban, with one calling it "completely pointless".
France regularly issues warnings of the "debasement" of its language through imported English words.
Other official translations include "jeu video en nuage" for "cloud gaming".
The Académie Française was created in 1635 by Cardinal Richelieu, and is the official custodian of the French language.
The forty Académie members even have their own heavily embroidered uniform, complete with ceremonial sword - an outfit that might not look completely out of place in a game such 2014's Assassin's Creed Unity.
The institution has long campaigned against the incursion of English words into French, something technology has often encouraged.
However, as news site Thelocal.fr noted, a previous effort to replace "le wifi" with "l'access sans fil à internet", did not take off.
On Twitter, one gamer opposed the latest ruling, writing: "I'm French and I find this absolutely ridiculous, nobody will ever use those terms. This type of ban is completely pointless."
But several others in the same series of replies to a tweet by Eurogamer, posted memes suggesting they thought the French versions sounded rather more sophisticated then their English equivalents.-BBC
Nigeria: Foreign Capital Inflow Rises 60 Percent to $610m, Outflow Rises Faster
Though Nigeria's economy recorded a significant rise in foreign capital importation year-on-year (YoY) by 60 per cent to $610 million in January 2022, against the $380 million in January 2021, the rate of capital outflow from the economy increased massively by 163 per cent to $290 million in January 2022, from $110 million in January 2021.
However, the data released by the Central Bank of Nigeria, CBN, in its Economic Report for January 2022, which contained these figures also shows that portfolio investment (mainly money market instruments) rose massively YoY by 390 per cent to $400 million, from $10 million in January 2021.
Other investments (mainly loans) declined YoY by 43 per cent to $170 million in January from $290 million in January 2021.
Foreign Direct Investment (FDI) fell YoY by 33 per cent to $40 million, from $60 million in January 2021.
On month-on-month the capital inflow was down by 45 percent against the $1.11 billion recorded in December 2021
CBN attributed the decline to tighter global financial conditions, driven by anticipated hikes in Fed's fund rates.-Vanguard.
Nigeria: Food, Beverage Sector Bleed From Decaying Infrastructure, Others - Employers
Employers in the Food and Beverage sector of the nation's economy have warned that decaying infrastructure, excessive taxation, and insecurity among other challenges, have continued to weigh the sector down, saying these and other challenges have continued to hamper the growth of the industry.
Speaking at its 43rd Annual General Meeting in Lagos, the President, Chief Patrick Anegbe, said despite the efforts that have been made in the last couple of years to address these problems, the Government has largely failed to match the pace of demands in these critical areas.
He stated: "Issues concerning some of the activities of federal, state and local governments that we have consistently highlighted at our Annual General Meetings have not changed. In many instances, they have assumed unimaginable dimensions, the impact of which has been to the detriment of member- companies.
"The issues include the penchant of government officials not disposed to follow the law. They have also reared their ugly heads in the indiscriminate imposition of taxes and levies, in addition to the disruption of some of our member - companies' businesses, sometimes in a most uncivilised manner.
"The gap being experienced has been a major drain on the resources of our member companies because they have had to fund their required infrastructure. It is even more disheartening that the efforts they have been making have not been recognised by the tax and other authorities such that some relief is given for the expenses these companies have been incurring in the face of the government's inability to adequately provide them."
"The result is that businesses have continued to spend huge resources to put in place what normally the Government should be responsible for. The implication is that resources that should be used to expand the businesses are deployed to address the inadequacies that the various taxes paid should normally take charge of.
This situation needs to change if we are desirous of optimizing our productive capacity as a country."
He lamented the deplorable security situation in the country and urged the government to brace up to provide solutions to the challenge, saying "The absence of peace and stability has had their toll on investments in Nigeria. This is evident from the poor inflow of Foreign Direct Investments, FDI, over the last couple of years.
"These developments have also impacted negatively on economic growth, especially with respect to agriculture, the product of which forms part of the raw materials for businesses in our sector. Employment generation and market expansion among others have also been affected negatively."-Vanguard.
Ghana: Digital Leadership in the 21st Century Is a Must - VP Bawumia
The Vice President, Dr. Mahamudu Bawumia has underscored the importance of digital leadership to the success of organisations and transformation of economies in the 21st century.
Addressing leaders and captains of industries at the 6th Ghana CEO's Summit in Accra on Monday, Dr. Bawumia stressed that digital leadership in the 21st century is crucial in order to ensure organisational success, and ultimately, make greater contributions towards the digital economic transformation agenda of the government.
He, therefore, urged captains of industries to provide effective and unwavering digital leadership in their various organisations.
"Effective leadership has always been considered as a key factor in organisational performance. For an organisation to be successful in these times, the leaders of that organisation must set the tone from the top and must be willing to champion sustainable digital programs in their operations,' Dr. Bawumia told the Summit, which discussed the importance of digital leadership in economic transformation.
"It goes without gainsaying that the advent of technology, including social media, has changed the way that we conduct business. As business leaders, therefore, it is important that you guide your organisations towards digital transformation through creative and effective methods."
Dr. Bawumia noted that from government's experience, changing the status quo through digitization comes with stiff resistance by interest groups within the status quo, so business leaders ought to develop strong commitments, just as the government did, to be able to make the required transformation.
"As a government, we realized very early on the need to transform our economy in that manner (digitalisation) and while the initial phase of this transformation, like all reforms, entailed some major costs, the benefits are already beginning to show. Digital leadership requires that we stay the course and not waver as we continue to invest in that direction."
"We acknowledge that this is a painstaking process and will require a gradual adjustment that entails a lot of planning and behavioural change, but I am confident that the results will benefit all stakeholders and accordingly the pain will match the gain.
"I therefore will like to charge all of you gathered here today, as business leaders, to make deliberate efforts towards employing digital leadership in the running of your businesses and strive to complement the efforts of government in the realization of this goal."
"As leaders of your various organisations, you need to build a culture of digital transformation to remain competitive."
The Vice President noted further that the realization of the Sustainable Development Goals requires a concerted effort from both the private and public sectors, and these efforts, he added, must be underpinned by digital leadership to yield results.
He shared with the CEOs the trajectory of government's digital transformation and how the digital investment is impacting lives and the economy, and how it will be the bedrock for future economic development, especially in the aftermath of the current global economic challenges, which he said is forcing nations to rethink and be less dependant on others.-Ghana Presidency.
Nigeria: Namibia Pushes for Improved Bilateral Relationship With Nigeria
Namibia has expressed its willingness to extend bilateral relationship with Nigeria.
According to the country, it would use the hosting of the fifth session of the Namibia-Nigeria Joint Commission of Cooperation holding in Windhoek in August, 2022, to push for improved bilateral relationship between the two African countries.
Addressing a press conference in Abuja, yesterday, the High Commissioner of Namibia to Nigeria, Mr. Humphrey Geiseb, said the present volume of trade between the two countries needed to be improved.
He noted that with the establishment of Namibia-Nigeria Joint Commission of Cooperation in 2000 provided a platform for assistance and to execute projects between the two countries.
He said: "In 2000, Namibia and Nigeria established the Namibia-Nigeria Joint Commission of Cooperation. In August 2022, Namibia will host the 5th Session of this Joint Commission to elaborate on mutually beneficial projects between Namibia and Nigeria.
"This Joint Commission has stood the test of time and has provided a platform to execute great projects between our two countries."
Geiseb added: "Presently, Namibia exports salt worth around $10 million a year to Nigeria and also some electronics. A factory to build Namibian electronics in Lagos is under way. Two Nigerian companies - Premier Charcoal in Outjo and King Charcoal in Walvis Bay - are operating in Namibia owned by Nigerian investors."
He noted that: "There is tremendous potential for increasing trade. Definitely, Namibian producers can still export Salt and hopefully in future, Namibian grapes, dates, wine, and once restrictions are lifted, Namibian beef and lamb.
"There are Namibian producers ready to export Namibian lamb once a permit is granted. Similarly, Namibia is open for business for Nigerian businesses ready to export quality Nigerian products to Namibia."
The envoy revealed that more than 3000 Nigerians are today resident in Namibia while close to 20 Namibians live in Nigeria.
He said with both Namibia and Nigeria signatories to the African Continental Free Trade Area Agreement, both countries would benefit from increased robust intra-African trade amongst African countries.
He said Namibia looks forward to the negotiation and finalisation of the Agreement, especially the eradication of trade and non-trade barriers' restrictions, import limitations and all impediments to boosting trade.
The High Commissioner expressed the willingness of his country to trade with and export to sister African country Namibia's quality beef, lamb, dates, grapes, wines, fish and many other value-added products.-This Day.
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INVESTORS DIARY 2022
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