Major International Business Headlines Brief::: 11 March 2022

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Major International Business Headlines Brief::: 11 March 2022 

 


 

 


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ü  US condemns reports Russia may seize firms' assets

ü  Facebook to allow calls for violence against Putin

ü  Rising fuel and food costs push US inflation to 7.9%

ü  'Our collapse would be catastrophic for the war'

ü  Goldman Sachs and Western Union pull out of Russia

ü  Russia says China refuses to supply aircraft parts after sanctions

ü  Analysis: You still need us, UAE tells U.S. as it flexes Gulf oil muscles

ü  U.S. eliminates human controls requirement for fully automated vehicles

ü  Tobacco group BAT suspends Russia capital investments, scales back
marketing

ü  Oil steadies amid supply doubts, but heads for sharp weekly decline

ü  Wall Street closes lower as inflation hits 40-year high, inviting
aggressive Fed tightening

ü  Apple to chime louder in Asia with 5G iPhone SE

ü  Oracle bets on cloud boom to forecast upbeat profit

ü  Nigeria: Lagos Govt Suspends National Union of Road Transport Workers
Activities

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

US condemns reports Russia may seize firms' assets

The United States has condemned reports that Moscow may seize the assets of
businesses which have stopped operating in Russia over the invasion of
Ukraine.

 

White House press secretary Jen Psaki warned that such a move will result in
"more economic pain".

 

Her comments come as the US Congress passed a spending bill which includes
almost $14bn (£10.7bn) of emergency aid for Ukraine.

 

President Biden is expected to announce new measures against Russia on
Friday.

 

Russia seizing the assets of foreign companies would be a "lawless
decision," Ms Psaki said on Twitter.

 

"It will compound the clear message to the global business community that
Russia is not a safe place to invest and do business," she added.

 

Any lawless decision by Russia to seize the assets of these companies will
ultimately result in even more economic pain for Russia. It will compound
the clear message to the global business community that Russia is not a safe
place to invest and do business.

 

In response to a growing number of firms suspending their operations, Moscow
has warned that it may nationalise production plants or factories where work
has been suspended.

 

The ruling United Russia party proposed the move on Monday, although Andrei
Turchak, secretary of its general council, acknowledged it was an "extreme
measure".

 

"But we will not tolerate stabs in the back, and we will protect our people.
This is a real war, and not against Russia as a whole, but against
citizens," Mr Turchak said.

 

On Thursday, the party said President Vladimir Putin was finding "legal
solutions" to put the plan in place.

 

How Asia is divided over Russia sanctions

Goldman Sachs and Western Union pull out of Russia

In light of the reports, global corporations that are cutting business ties
or have halted operations in Russia told the BBC that they currently do not
intend to change their plans.

 

"We have had no indications from Russian authorities that they intend to
nationalise our assets," a spokesperson for Coca-Cola said.

 

BP, which announced that it will offload its stake in Russian state-owned
oil firm Rosneft, said its "position is unchanged".

 

"We have decided to exit our shareholding in Rosneft and our businesses with
Rosneft in Russia, and we are pursuing that. There isn't a change or an
update on this," a spokesperson said.

 

In Washington on Thursday, the US Congress passed a $1.5tn spending bill,
which includes almost $14bn in emergency aid for Ukraine.

 

The bill is expected to be signed into law by President Biden before
government funding is due to run out on Friday night.

 

Also on Friday, the US, along the the Group of Seven (G7) and the European
Union, is expected to move to remove Russia's "most favoured nation" trading
status over its invasion of Ukraine.

 

Revoking the preferential trading status would mean that the US and its
allies would be able to impose tariffs on Russia, which would further
isolate its economy.

 

The G7 is made up of the US, UK, Japan, Germany, France, Italy and Canada.

 

'Pushed to a corner'

Pushan Dutt, a professor of economics and political science at the INSEAD
business school, believes Russia underestimated the global response to the
war.

 

The country has been "pushed to a corner", he said, as it underestimated the
pushback from Ukrainians, the resulting international sanctions, and the
"will of NATO and the US to carry a full-fledged economic warfare".

 

"I suspect they will go ahead and nationalise these assets, because their
economy is under heavy pressure," Professor Dutt told the BBC.

 

"If all these factories shut down and start laying off workers, then they
face internal pressures at home as well. The only way to maintain support
internally is to make it an 'us versus them', Russia versus the rest of the
world kind of picture," he said.-BBC

 

 

 

Facebook to allow calls for violence against Putin

The owner of Facebook and Instagram will allow users in some countries to
call for violence against Vladimir Putin and Russian soldiers.

 

Meta says it has temporarily made allowances for some violent speech, like
"death to the Russian invaders," that would usually break its rules.

 

However, it says it won't permit calls for violence against Russian
civilians.

 

The announcement came after Reuters news agency said it had seen internal
emails outlining the policy shift.

 

"In light of the ongoing invasion of Ukraine, we made a temporary exception
for those affected by the war, to express violent sentiments toward invading
armed forces," a Meta spokesperson told the BBC.

 

Under the amended policy, users in countries including Russia, Ukraine and
Poland will also be able to call for the deaths of Russia's President Putin
and Belarusian President Lukashenko.

 

The emails reportedly said calls for the leaders' deaths will be allowed
unless they contain other targets, or included a location or methods.

 

Calls for violence against Russians is also allowed when the post is clearly
references the invasion of Ukraine, the emails reportedly said.

 

Russia announced last week that it was blocking Facebook and its platforms,
citing 26 cases of "discrimination" against Russian media by Facebook since
October 2020.

 

While access to the site had already been restricted in Russia, it was not
completely unavailable.

 

Moscow has cracked down on several social media platforms as it pursues what
it calls a "special operation" in Ukraine.-BBC

 

 

 

Rising fuel and food costs push US inflation to 7.9%

Price increases in the US continued to surge last month, pushing the annual
inflation rate up 7.9%.

 

That is the biggest year-on-year leap since 1982 and up from the 7.5% rate
reported in January.

 

Rising costs for energy, food and shelter drove the gains, which are
squeezing household incomes.

 

President Joe Biden and central bank officials are under pressure to rein in
the increases, which have proven more persistent than many expected.

 

The Federal Reserve - the US central bank - is widely expected to raise
interest rates at its meeting this month.

 

In the UK - where inflation hit 5.5% in January - the Bank of England has
already increased rates, while the European Central Bank on Thursday said it
would wind down some of its pandemic-era stimulus sooner than expected in
response to the price pressures.

 

At a news conference, ECB president Christine Lagarde said: "The risks to
the economic outlook have increased substantially with the Russian invasion
of Ukraine and are tilted to the downside".

 

The war will have "a material impact on economic activity and inflation
through higher energy and commodity prices, the disruption of international
commerce and weaker confidence", she warned.

 

The US and other parts of the world have already been grappling with high
inflation for months, as a surge in demand, fuelled in part by pandemic aid,
ran into supply constraints, labour shortages and other issues.

 

The war in Ukraine has added to the problems, driving a global surge in
energy prices as the West and allies shun oil from Russia - typically
responsible for about 7% of global supply.

 

Energy prices in the US jumped 3.5% in February, driven by a 6.6% leap in
gasoline prices, according to the Labor Department's monthly report on
consumer prices.

 

Over the past 12 months, the energy index has soared more than 25%, with
gasoline surging 38%.

 

Americans who own SUVs are now paying an average of $110 per month more than
a year ago to operate their vehicle, according to research from Cox
Automotive. Even drivers of hybrids have seen monthly costs jump about $40,
the firm estimated.

 

'Blazing pace'

The surge in energy costs will push up prices far beyond the gas pump, said
Matt Smith, an oil analyst at Kpler.

 

"We're focused on that headline crude number, but that crude is used as an
input to produce all manner of products," he said.

 

Grocery prices in the US jumped 1.4% last month, driven by rising costs for
meat, fruits and vegetables. They are up 8.6% year-on-year - the largest
annual leap since 1981.

 

Analysts expect the increased costs of energy and other commodities due to
the war will push US inflation even higher in March, hitting 8% or more.

 

As the rising costs outpace wage gains, they have hurt consumer sentiment,
creating a political problem for President Joe Biden.

 

He has been criticised by Republicans on the issue, which few economists
expect to ease in the near-term.

 

"Inflation continues on at a blazing pace," Wells Fargo economist Sarah
House said. "Consumers and policymakers remain in a deeply uncomfortable
state as a result."-BBC

 

 

'Our collapse would be catastrophic for the war'

The boss of one of Ukraine's biggest food producers said that if its
operations fail, it would have a "catastrophic" impact on the army and the
country's wider population.

 

MHP is a London listed poultry company with over 30,000 workers in Ukraine.

 

It is a big supplier to the Ukrainian military and has been involved in the
humanitarian effort.

 

It has delivered food to isolated communities across the country.

 

These deliveries have often been undertaken for free and at great personal
risk to MHP SE's employees.

 

The company's Australian chairman, Dr John Rich, has been running the
company from its offices in Slovenia and said its survival is critical to
the war effort.

 

The implications of the firm failing in its production or distribution
operations would have a "catastrophic effect" on the army and the war
effort, Dr Rich explained.

 

This would also have an "enormous humanitarian effect" in Ukraine because
MHP is last company standing in this area of food supply, according to Dr
Rich.

 

"A lot of our competitors, particularly in the east of the country, have
ceased to exist", he explained.

 

Dr Rich said that the company is a critical food producer and distributor
for the army.

 

"You've got to put food in the army's belly, and protein in particular. If
you don't do that, particularly in cold conditions, you have significant
problems."

 

Five days without food

MHP has thousands of vans at its disposal which has made it an important
part of the humanitarian effort. Delivering it's own products and other aid
has been particularly important for towns and villages that have become
isolated following the invasion where Dr Rich said some people have spent up
to five days without food.

 

"We've been delivering ready to eat food, because people can't cook outside,
and delivering to villages that have become cut off," Dr Rich said.

 

"At present, the company is operating like a war room. No question," he
explained.

 

"Frankly the drivers going into those areas - It's like a suicide mission,
particularly getting into the cities that have been under heavy attack."

 

"It's an enormous challenge for our staff and we have to try and incentivise
people, pay them more, and guarantee to look after their family if something
happens", he added.

 

In addition to its poultry operations, MHP has a major presence in the
country's agriculture sector, growing wheat and grain on thousands of
hectares of land.

 

The firm is also a big exporter of sunflower oil, though the company's
exports ground to a halt following the invasion.

 

Both Ukraine and Russia are both major exporters of basic foodstuffs, and
the war has already hit crop production, driving up prices.

 

On Monday, one of the world's biggest fertiliser firms, Yara International,
warned that the war would deliver a shock to the global supply and cost of
food.

 

The next few weeks are 'critical'

The next few weeks are critical for sowing wheat and other crops, and Dr
Rich said the situation is on a knife edge. At the moment the firm has the
ability to sow crops within two to three weeks but this could be impacted by
the advances of the Russian army which have occupied 15% of the land so far,
Dr Rich explained.

 

"If this continues, of course our ability to sow rapidly diminishes,
particularly if they (the Russian army) moves into the west of the country
where a large part of our operations are based", he added.

 

Dr Rich said this could could lead to the complete failure of Ukraine to
produce anything, but also has implications globally.

 

"The consequences are unimaginable as far as Ukraine is concerned," he said.

 

"For the wider world, it's simple. The price of wheat will continue to rise,
the price of corn and other commodities will rise significantly, and you'll
have spiralling inflation at a time when we've already had problems with the
global supply chain because of COVID," he added.

 

The head of the World Food Programme, David Beasley, has also warned that
the conflict in Ukraine could send global food prices soaring, with a
catastrophic impact on the world's poorest.

 

Analysts have forecasted that the war could even double global wheat prices.

 

MHP has appealed for donations to its charitable foundation so they can
continue to distribute food. Dr Rich explained he was trying to cover the
enormous costs of giving away poultry for free when the firm's input costs
were "sky rocketing".

 

"We cant continue to exist like this without some sort of support. That's
the reality."-BBC

 

 

 

Goldman Sachs and Western Union pull out of Russia

Goldman Sachs has said it will close its operations in Russia, becoming the
first Wall Street bank to pull out of the country in response to the
invasion of Ukraine.

 

Money transfer giant Western Union has also said it will suspend operations
in Russia and Belarus.

 

The firms join a rush of global brands halting operations in Russia.

 

Earlier on Thursday, the owner of Uniqlo made a U-turn and decided to
suspend operations in the country.

 

Sanctions bite

Operating in Moscow has been increasingly difficult for Western financial
institutions and other firms amid international sanctions against Russia.

 

More than 330 firms have withdrawn or significantly curtailed operations in
the country in recent days, according to Yale researchers, who have been
tracking the corporate response.

 

On Thursday, Goldman Sachs said it would be "winding down" its business in
Russia rather than leaving immediately.

 

The bank said it was doing so "in compliance with regulatory and licensing
requirements".

 

At the end of 2021, Goldman Sachs' total credit exposure in Russia was $650m
(£496m).

 

Later Thursday, fellow Wall Street giant JP Morgan Chase also said it was
"actively unwinding Russian business", with activities focused on taking
care of staff and helping global clients manage risk and close out
obligations.

 

Meanwhile Western Union said it "stands with the world in condemning the
unprovoked and unjustified invasion of Ukraine".

 

"Ultimately, in light of the ongoing tragic impact of Russia's prolonged
assault on Ukraine, we have arrived at the decision to suspend our
operations in Russia and Belarus," the company said.

 

The action is a further blow to flows of money in Russia. Western Union
provides international money transfer and payments services in more than 200
countries and 130 currencies.

 

In an interview with the BBC published today, Ukrainain Central Bank
Governor Kyrylo Shevchenko had called on Western Union to "cease deliveries
of cash to Russian and Belarusian banks."

 

What sanctions are being imposed on Russia?

Change of direction

Earlier on Thursday, Uniqlo owner Fast Retailing said it had decided to
change its stance on continuing trading in Russia.

 

It said it was faced with "operational challenges" due to the "worsening of
the conflict situation" after Russia's invasion of Ukraine.

 

Earlier in the week it had said it would keep its Russian shops open, saying
that clothing is a "necessity of life".

 

But in its latest statement, it said Uniqlo could "no longer proceed" in
Russia.

 

"Uniqlo has made everyday clothing available to the general public in
Russia," it said.

 

"However, we have recently faced a number of difficulties, including
operational challenges and the worsening of the conflict situation. For this
reason, we will temporarily suspend our operations."

 

Among the latest wave of companies to call a halt to trading or pull back
from investing in Russia, Rio Tinto became the first major mining company to
cut ties with Russian businesses, while Japan's Sony and Nintendo suspended
deliveries of gaming consoles.

 

The world's biggest insurance broker, New York-listed Marsh McLennan, also
announced it would exit Russia on Thursday. Ownership of its Russian
businesses will be transferred to local management that will be
independently operated, the group said.

 

Japanese firm Hitachi said it would stop exports and cease most operations
in Russia except for vital electrical power facilities, following similar
moves by US companies such as Caterpillar.

 

"We took multiple factors including the supply chain situation into
account," a Hitachi spokesperson said.

 

Ukraine's Vice Prime Minister Mykhailo Fedorov had been urging the
suspension.

 

Entertainment giant Sony, which had already stopped releasing films in
Russia, suspended the launch of racing game "Gran Turismo 7".

 

Food companies Nestle, Mondelez, Procter & Gamble and Unilever have halted
investment in Russia, but said they would continue providing essentials.

 

Fast food slowdown

McDonald's said on Tuesday that it would temporarily close its 847 Russian
outlets.

 

The fast food giant has said that the move, which includes continuing to pay
its 62,000 staff and restaurant employees in Russia, will cost about $50m
(£38m) a month.

 

"This is a really challenging and complex situation for a global company
like us," said chief financial officer Kevin Ozan.

 

A number of other US food retailers, including Starbucks, PepsiCo and
Coca-Cola Co, have said they will stop some or all business in Russia
following the Ukraine invasion.

 

Meanwhile Burger King has suspended all of its corporate support, marketing
and investment in Russia. But as its Russian outlets are fully franchised,
many will remain open as they are managed by local franchisees.

 

Nationalisation warning

On Thursday, Russia's Izvestia newspaper reported that the Russian
government had put together a list of about 60 foreign companies that could
be nationalised in response to the suspension of operations.

 

It said firms including Apple, Ikea, Microsoft, IBM, Shell, McDonald's,
Porsche, Toyota and H&M could have their accounts and assets seized, and
"external management" brought in, BBC News Moscow producer Will Vernon said.

 

It is unclear how the nationalised companies would be able to sell the
products associated with those firms.

 

In response to Western sanctions, Russia has imposed export bans on a string
of products until the end of 2022.

 

The ban covers exports of telecoms, medical, vehicle, agricultural, and
electrical equipment, as well as some forestry products such as timber.

 

Call for help

Meanwhile in the UK, the CBI business lobby group called for government
support as Western economies cope with the repercussions from Russia's
invasion of Ukraine.

 

The CBI said it "fully supports" the sanctions that have been placed on
Russia "despite their cost".

 

But its director general Tony Danker said the UK government must help
businesses cope with the fallout such as rising energy costs and inflation
as well as any impact on investment.

 

He said the UK and other countries "now need to confront the economic
consequences of unwinding from Russia".

 

The CBI wants the government to "fast-track progress on some of the big
policy issues and help firms invest".

 

Mr Danker called for an acceleration of renewable energy and government
support on energy bills, especially for energy intensive industries.

 

He also asked for the UK government "to stand behind domestic oil and gas in
our energy transition" while the country should also "identify new trading
partners" for minerals and other commodities, and enhance cyber
security.-BBC

 

 

 

Russia says China refuses to supply aircraft parts after sanctions

(Reuters) - China has refused to supply Russian airlines with aircraft
parts, an official at Russia's aviation authority was quoted by Russian news
agencies as saying on Thursday, after Boeing (BA.N) and Airbus (AIR.PA)
halted supply of components.

 

Russia's aviation sector is being squeezed by Western sanctions over the
invasion of Ukraine, with Russia's foreign ministry warning this week that
the safety of Russian passenger flights was under threat. read more

 

Agencies including Interfax quoted Valery Kudinov, a Rosaviatsia official
responsible for maintaining airplane airworthiness, as saying that Russia
would look for opportunities to source parts from countries including Turkey
and India after a failed attempt to obtain them from China.

 

He also said Russian companies were registering their planes, many of which
had been registered abroad, in Russia after the U.S. and European Union
sanctions on aviation and that he expects some others to be returned to
leasing companies.

 

Separately, a draft law published on Thursday showed the Russian government
plans to order domestic airlines to pay for leased aircraft in roubles and
could bar them from returning planes to foreign companies if leases are
cancelled. read more

 

The Thomson Reuters Trust Principles.

 

 

 

Analysis: You still need us, UAE tells U.S. as it flexes Gulf oil muscles

(Reuters) - By single-handedly knocking 13% off rocketing oil prices on one
day this week, the United Arab Emirates demonstrated the power Gulf
producers wield in the market and sent a wake-up call to Washington to pay
closer attention to its longtime allies.

 

OPEC heavyweights Saudi Arabia and the UAE, which both bear grudges against
Washington, have snubbed U.S. pleas to use their spare output capacity to
tame rampant crude prices which threaten global recession after Russia's
invasion of Ukraine.

 

Wednesday's sharp oil price fall, the biggest one-day drop in almost two
years, followed comments by the UAE ambassador to Washington, who said his
country supported pumping more oil.

 

Prices rebounded when the UAE energy minister contradicted him and said the
Gulf state stuck by an output pact agreed with OPEC+, which groups the
Organization of the Petroleum Exporting Countries and its allies, including
Russia. read more

 

"This was deliberate," Gulf Research Center Chairman Abdulaziz Sager said of
the conflicting UAE comments, adding that the message being sent to
Washington was: "You need us, we need you, so let's settle the issues
between us."

 

He said Washington, which flagged Russia's plans to invade Ukraine long
before Moscow's troops crossed the border on Feb. 24, should have
coordinated more closely with the Gulf producers in the buildup, rather than
turning to them once the crisis hit.

 

"Gulf states have over many years built a good relationship with Russia,
they cannot just overturn things," he said.

 

The United States wants the Gulf to side with the West over the Ukraine
crisis but Washington has eroded its political capital with Riyadh and Abu
Dhabi by not heeding their concerns about regional rival Iran, ending its
support for their war in Yemen and slapping conditions on U.S. weapons sales
to the Gulf states.

 

REBUILDING TRUST

 

Saudi Crown Prince Mohammed bin Salman was incensed by President Joe Biden's
refusal to deal directly with him as the kingdom's de facto ruler because of
the 2018 murder of Saudi journalist Jamal Khashoggi. A U.S. intelligence
report implicated the prince, who denies any role. read more

 

"There are many problems between the U.S. and its Gulf allies that need to
be addressed widely and resolved," said a Gulf source, saying trust needed
to be rebuilt. "It has nothing to do with Russia or the Ukraine war."

 

The source said Washington should have acted before the Russian invasion.
"The U.S. administration knew it was heading towards a crisis. They should
have fixed relations with their allies, coordinated and lined them up in
advance ... not just expect them to comply and handle oil prices."

 

Mistrust has built up since the 2011 Arab uprisings when Gulf rulers were
shocked at how the administration of President Barack Obama abandoned the
late Egyptian President Hosni Mubarak after a 30-year alliance, allowing him
to fall and ignoring the concerns of Gulf rulers over the rise of the Muslim
Brotherhood.

 

Sunni Muslim Gulf states also felt blindsided when Washington reached a
nuclear deal with Shi'ite Iran in 2015 that did not tackle Gulf concerns
about Tehran's missiles programme and regional proxies in Yemen, where the
Gulf neighbours have been embroiled in war, and Lebanon, now deep in crisis.

 

Saudi Arabia felt particularly spurned in 2019 when missile and drone
attacks on the kingdom drew a lukewarm U.S. reaction, although Riyadh and
Washington both blamed Tehran. Iran denied having a role.

 

The UAE felt equally frustrated in January when Yemen's Houthis launched
attacks on Abu Dhabi. Despite UAE calls for Biden to reinstate a terrorist
designation for the Iranian-backed group, Washington has yet to do so. read
more

 

PHONECALL SNUB

 

The Gulf source and another source familiar with the matter told Reuters
that Biden had irked UAE de facto ruler Abu Dhabi Crown Prince Mohammed bin
Zayed, known as MbZ, by not calling swiftly after the Houthis struck.

 

"Biden called him three weeks after. MbZ didn't take the call. Your ally
comes under a terrorist attack and you wait three weeks to call?" the Gulf
source said.

 

White House National Security Council spokesperson Emily Horne said on
Wednesday there had been "no issues with having a call" and Biden would
speak with the UAE leader soon. A UAE foreign ministry spokesperson said a
call was being scheduled.

 

Last month, Biden spoke with Saudi's King Salman while the crown prince,
known as MbS, was in the room. Sources said Biden had asked to speak with
the crown prince but MbS declined because the call had only been scheduled
with the king.

 

The White House and Saudi government did not immediately respond to a
Reuters requests for comment on the episode. The White House told a briefing
on Monday there were no plans "at this point" for Biden to call MbS.

 

The Ukraine crisis has erupted as the United States, Russia and other world
powers have been in talks to revive the nuclear pact with Iran. But Moscow
may have derailed those efforts for now by demanding guarantees from
Washington that Western sanctions on Russia do not affect its business with
Iran.

 

Gulf states have long felt their concerns have not been addressed in those
talks, fearing a deal will empower Iran and its regional proxies.

 

Gulf states are still likely to side with the United States, which they
depend on for their security, over their ties with Russia that focus on
energy and business.

 

"Ultimately, the U.S. does have clout, but the Saudi and Emirati resistance
threshold is particularly high at present, given their deep dissatisfaction
with U.S. policy towards them," said Neil Quilliam, associate fellow at
Chatham House.

 

The Thomson Reuters Trust Principles.

 

 

 

U.S. eliminates human controls requirement for fully automated vehicles

(Reuters) - U.S. regulators on Thursday issued final rules eliminating the
need for automated vehicle manufacturers to equip fully autonomous vehicles
with manual driving controls to meet crash standards.

 

Automakers and tech companies have faced significant hurdles to deploying
automated driving system (ADS) vehicles without human controls because of
safety standards written decades ago that assume people are in control.

 

Last month, General Motors Co (GM.N) and its self-driving technology unit
Cruise petitioned the U.S. National Highway Traffic Safety Administration
(NHTSA) for permission to build and deploy a self-driving vehicle without
human controls like steering wheels or brake pedals.

 

The rules revise regulations that assume vehicles "will always have a
driver's seat, a steering wheel and accompanying steering column, or just
one front outboard passenger seating position."

 

"For vehicles designed to be solely operated by an ADS, manually operated
driving controls are logically unnecessary," the agency said.

 

The new rules, which were first proposed in March 2020, emphasize automated
vehicles must provide the same levels of occupant protection as human-driven
vehicles.

 

"As the driver changes from a person to a machine in ADS-equipped vehicles,
the need to keep the humans safe remains the same and must be integrated
from the beginning," said NHTSA Deputy Administrator Steven Cliff.

 

NHTSA's rule says children should not occupy what is traditionally known as
the "driver's" position, given that the driver's seating position has not
been designed to protect children in a crash, but if a child is in that
seat, the car will not immediately be required to cease motion.

 

NHTSA said existing regulations do not currently bar deploying automated
vehicles as long as they have manual driving controls, and as it continues
to consider changing other safety standards, manufacturers may still need to
petition NHTSA for an exemption to sell their ADS-equipped vehicles.

 

The Thomson Reuters Trust Principles.

 

 

 

Tobacco group BAT suspends Russia capital investments, scales back marketing

(Reuters) - Camel and Lucky Strike cigarette maker British American Tobacco
Plc (BATS.L) said on Wednesday its business in Russia continued to operate,
but that it had suspended all planned capital investment in the country
following theUkraine invasion.

 

BAT, which has 2,500 workers in Russia and major local manufacturing
operations, also said it was "scaling our business activities appropriate to
the current situation, including rationalising our marketing activities."

 

The Ukraine crisis has put pressure on multinational companies to take
action, with a growing list of consumer products manufacturers distancing
themselves from Russia this week. read more

 

BAT's announcement comes hours after Philip Morris International Inc (PM.N)
suspended its planned investments in Russia and said it would scale down
manufacturing in the country. Smaller London-listed rival Imperial Brands
(IMB.L) also said on Wednesday that it had paused operations in Russia. read
more

 

The Thomson Reuters Trust Principles.

 

 

 

Oil steadies amid supply doubts, but heads for sharp weekly decline

(Reuters) - Oil prices stabilised on Friday and were on track for their
biggest weekly drops since November after see-sawing on fears of escalating
bans on Russian oil versus efforts to bring more supply to market from other
major producers.

 

Brent crude futures inched down 16 cents, or 0.15% to $109.17 a barrel at
0434 GMT after dropping 1.6% in the previous session.

 

U.S. West Texas Intermediate (WTI) crude futures were up 2 cents, or 0.02%,
to $106.04 a barrel, following a 2.5% decline on Thursday.

 

In a week of volatile trading marked by talk of Russian oil embargoes then
potential supply additions from Iran, Venezuela and the United Arab Emirates
while fighting escalated in Ukraine, Brent was on track for a weekly fall of
about 7% after hitting a 14-year high of $139.13. U.S. crude was headed for
a drop of around 8% after touching a high of $130.50.

 

"Both contracts could well move sharply below $100 a barrel from here on any
news perceived as easing supply disruptions," said Jeffrey Halley, an
analyst at OANDA.

 

Similarly, both contracts could easily be back at $115.00+ on any negative
headlines, he said.

 

"It's just that sort of market."

 

Prices eased this week after it became clear the European Union, heavily
reliant on Russian energy, would not join the United States and Britain in
banning Russian oil.

 

Russia, the world's second largest crude exporter behind Saudi Arabia,
exports about 3 million barrels per day of crude to Europe's OECD countries.

 

In the near term, supply gaps are unlikely to be filled by extra output from
members of the Organization of the Petroleum Exporting Countries and allies,
together called OPEC+, given that Russia is part of the grouping,
Commonwealth Bank analyst Vivek Dhar said.

 

"They're really tied politically by the structure," he said.

 

In addition, some OPEC+ producers, including Angola and Nigeria, have
struggled to meet their production targets, further limiting the group's
ability to offset Russian supply losses.

 

Commonwealth Bank forecasts Brent will average $110 in the second and third
quarters of this year, but sees prices potentially climbing as high as $150
in the short term.

 

"All of it is very uncertain. It's been very difficult to come out with a
view," Dhar said.

 

The Thomson Reuters Trust Principles.

 

 

 

Wall Street closes lower as inflation hits 40-year high, inviting aggressive
Fed tightening

(Reuters) - Wall Street resumed its slide on Thursday, ending in the red as
inflation hit a four-decade high, cementing expectations that the U.S.
Federal Reserve would hike key interest rates at the conclusion of next
week's monetary policy meeting to prevent the economy from overheating.

 

Looming uncertainties surrounding Russia's invasion of Ukraine also helped
convince market participants to recommence their flight to safety.

 

While all three major indexes ended in the red, they pared their losses late
in the day and closed well above session lows, as the U.S. equities market
followed its best day in months on Wednesday by renewing a multi-session
sell-off.

 

"It's more of the same," said Paul Nolte, portfolio manager at Kingsview
Asset Management in Chicago, noting that the equity market's daily
volatility is "being driven more by geopolitical than economic news."

 

Consumer prices surged in February to a 7.9% annual growth rate, according
to the Labor Department, the hottest reading in forty years. read more

 

"The (CPI) print was not far off estimates," Nolte added. "There will be
more to come in the next month or two as some of the rising commodity prices
get incorporated."

 

While the market fully expects the central bank to raise the Fed funds
target rate by 25 basis points at the conclusion of next week's monetary
policy meeting, the CPI data suggested the FOMC could move "more
aggressively" to curb inflation in the upcoming year, as promised by Fed
Chair Jerome Powell last week. read more

 

"It's still expected the Fed will raise rates four to seven times in the
next year or two to curb economic growth," Nolte said, adding that "what
complicates this, is the Fed has never raised rates with the yield curve
this flat and volatility so high."

 

"They're trying to increase rates at a time when the market is in turmoil."

 

The graphic below shows annual core CPI growth, along with other indicators,
and how far they have soared above the Fed's average annual inflation
target:

 

Energy prices were the main culprit, with gasoline prices surging 6.6% in a
single month, although the report did not reflect the entirety of spiking
crude prices in the wake of Russia's actions in Ukraine.

 

Those actions kept geopolitical jitters at a full boil, with peace talks
showing little progress even as a humanitarian crisis unfolds and world oil
supply pressures continued to weigh on global markets. read more

 

Amazon.com provided one of the day's bright spots, its shares jumping 5.4%
after the e-commerce giant announced a 20-for-1 stock split and a $10
billion share buyback. read more

 

The Dow Jones Industrial Average (.DJI) fell 112.18 points, or 0.34%, to
33,174.07, the S&P 500 (.SPX) lost 18.36 points, or 0.43%, to 4,259.52 and
the Nasdaq Composite (.IXIC) dropped 125.58 points, or 0.95%, to 13,129.96.

 

Six the 11 major sectors in the S&P 500 closed in negative territory with
tech (.SPLRCT) suffered the biggest percentage drop, while energy shares
(.SPNY) saw the largest gain.

 

The NYSE FANG+ index (.NYFANG) of market leading tech and tech-adjacent
megacaps plunged on the day.

 

The NYSE FANG+ index (.NYFANG) of market leading tech and tech-adjacent
megacaps plunged 2.1%.

 

Goldman Sachs Group Inc (GS.N) became the first major U.S. investment bank
to announce it was closing operations in Russia. Its shares dropped 1.1%.

 

The S&P 500 banking index (.SPXBK) slid 1.0%.

 

Oracle Corp dipped nearly 6% in after-hours trading after the business
software and cloud computing firm posted quarterly results. read more

 

Declining issues outnumbered advancing ones on the NYSE by a 1.62-to-1
ratio; on Nasdaq, a 1.72-to-1 ratio favored decliners.

 

The S&P 500 posted 5 new 52-week highs and 12 new lows; the Nasdaq Composite
recorded 28 new highs and 163 new lows.

 

Volume on U.S. exchanges was 12.50 billion shares, compared with the 13.65
billion average over the last 20 trading days.

 

The Thomson Reuters Trust Principles.

 

 

 

Apple to chime louder in Asia with 5G iPhone SE

(Reuters) - Apple Inc's (AAPL.O) low-cost 5G model should enhance the iPhone
maker's appeal in Asia where it is in a stiff battle with multiple rivals
from Samsung (005930.KS) to Vivo, analysts believe.

 

After focusing on high-end phones during the pandemic-induced supply chain
crisis, Apple this week unveiled 5G connectivity to its iPhone SE - for $429
- which is likely to attract more lower-end buyers in emerging markets. read
more

 

"The new 3rd gen iPhone SE could be effective in gaining incremental share
among price sensitive consumers, especially in Asia," Cowen and Company
brokerage said, citing China and India in particular.

 

Counterpoint Research said the earlier 4G iPhone SE accounted for 12% of
total iPhone sales from its launch in Q2 2020 until the end of 2021, with
Japan the biggest market after the United States.

 

'DEMAND TO OPEN UP'

 

"This time we expect demand to open up more across other markets like
Europe, SE (South East) Asia and Korea – regions where many consumers stayed
away because of the lack of 5G support (for the older SE)," Counterpoint
Research analyst Sujeong Lim said.

 

The world's most valuable company with a market capitalization around $2.6
trillion, Apple achieved its highest ever market share in China at the end
of last year, surpassing Huawei [RIC:RIC:HWT.UL] to become the best seller,
according to a previous Counterpoint. read more

 

Cowen and Company analyst Krish Sankar said the new small-screen 5G phone's
$30 price hike from the 4G version should cover most extra costs from the
enhanced technology, though margins would be lower compared to the $699
iPhone 13 mini.

 

He estimated the iPhone SE would generate gross margin between 42%-54%, or
roughly half the gross profit for each device compared with the iPhone 13
mini.

 

"We believe a renewed affordable iPhone SE lineup should buoy consumer
interest in iPhones versus investor fears of sharp declines," Citi analyst
Jim Suva said.

 

The Thomson Reuters Trust Principles.

 

 

 

Oracle bets on cloud boom to forecast upbeat profit

(Reuters) - Oracle Corp (ORCL.N) forecast fourth-quarter profit above Wall
Street estimates as the legacy software firm expects its heavy cloud
investments to pay off, as more businesses ramp up their spending to support
hybrid work and transition to cloud.

 

The company's strong forecast, which was disclosed on a call with analysts,
pulled up its shares from a nearly 6% slide in extended trading triggered by
tepid third-quarter profit due to higher spending for its cloud services.

 

Oracle said it is on track to spend $4 billion in capital expenditure this
year as it looks to build more data centers and improve its cloud services
that trail behemoths like Microsoft (MSFT.O), Amazon and Alphabet's
(GOOGL.O) Google.

 

Edward Jones analyst Logan Purk said Oracle's plan to increase investment in
its cloud business was the "right move." "I do think that's (profit
forecast) enough to convince investors Oracle still has room to grow," he
said.

 

Oracle said its third-quarter operating expenses were up as the company
invested aggressively to meet customer demand for cloud services. Cloud
services and license support costs alone rose 23% during the quarter, while
total operating expenses were up 8% at $6.69 billion.

 

Excluding items, it earned $1.13 per share for the quarter ended Feb. 28,
missing analysts' estimates of $1.18.

 

Oracle Chief Executive Officer Safra Catz said earnings were hit by "share
price declines of equity investments, impacted by the widespread downturn in
equity markets last quarter."

 

Revenue was at $10.51 billion, in line with estimates, according to IBES
data from Refinitiv.

 

The company expects fourth-quarter adjusted profit to be between $1.40 and
$1.44 per share, ahead of estimates of $1.38. It forecast revenue to grow
between 6% to 8% on a constant currency basis.

 

The Thomson Reuters Trust Principles.

 

 

 

Nigeria: Lagos Govt Suspends National Union of Road Transport Workers
Activities

The state government said it would set up a committee to immediately take
control of the parks and garages.

 

The Lagos State government has announced the suspension of the activities of
the National Union of Road Transport Workers (NURTW) from parks and garages
across the state.

 

Gbenga Omotoso, the commissioner for information and strategy, said in a
statement Thursday that the government's decision was premised on its
responsibility to ensure that there is no breakdown of law and order.

 

"The Lagos State government has been watching closely events in the National
Union of Road Transport Workers. There have been claims and counterclaims
over the control of the union," the statement said.

"The government has a duty to ensure the safety of lives and property of all
Lagosians and visitors. Therefore, there is an urgent need to douse the
unnecessary tension generated by the leadership tussle in the NURTW and
protect the citizenry from the likely fallout of the situation."

 

The state government said it would set up a committee to immediately take
control of the parks and garages.

 

"Members will be key stakeholders in the sector," it added.

 

The government's decision came a day after the NURTW national body suspended
Musiliu Akinsanya, popularly known as MC Oluomo, the chairman of the Lagos
State chapter, from the association for "acts of insubordination and gross
misconduct."

 

On Thursday, Mr Akinsanya announced the pulling out of the Lagos State
chapter of the NURTW from the national body and called on the state
government to take over the parks and garages in line with its white paper
on Transport Union activities 2004.-Premium Times.

 

 

 

 

 

 

 


 


 


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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