Major International Business Headlines Brief::: 08 November 2022

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Major International Business Headlines Brief::: 08 November 2022 

 


 

 


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ü  Foxconn: iPhone maker bets on electric truck firm Lordstown Motors

ü  Sriram Krishnan: The Indian-American 'helping' Elon Musk run Twitter

ü  Liverpool owners Fenway Sports Group 'would consider new shareholders'

ü  Ten days of Twitter chaos

ü  Why an old train could point to a clean energy future

ü  Facebook owner Meta expected to announce major job losses

ü  Apple: iPhone shipments delayed over China Covid lockdown

ü  Ebay urges shoppers to pick old over new this Black Friday

ü  Millions to receive latest cost-of-living payment

ü  Nigeria: South-East Not Marginalised in Buhari's Rail Project - Federal
Govt

ü  Kenya: Standard Gauge Railway Disputes to Be Resolved in China If
Friendly Consultations Fails

ü  Africa: Perceived Versus Real Risk In African Credit Ratings

ü  South Africa: Eskom Loan 'Significant Step' for Just Energy Transition

 


 <mailto:info at bulls.co.zw> 

 


 

Foxconn: iPhone maker bets on electric truck firm Lordstown Motors

Foxconn, which makes iPhones for Apple, says it is deepening its investment
in a US electric pick-up truck firm, which could challenge Tesla's
Cybertruck.

 

The technology giant is spending up to $170m (£147.8m) on shares in the
loss-making start-up Lordstown Motors.

 

The major cash injection comes as the company aims to ramp up production of
its debut model, the Endurance.

 

Lordstown recently began building the vehicle at a former General Motors
plant in the US state of Ohio.

 

Under the deal, the world's largest contract manufacturer of electronics
bought a more than 18% stake in Lordstown, making it the largest investor in
the company.

 

"Since announcing our first transaction with Foxconn more than a year ago,
it has been our objective to develop a broad strategic partnership that
leverages the capabilities of both companies," Lordstown's executive
chairman Daniel Ninivaggi said.

 

"Foxconn's latest investment is another step in that direction," he added.

 

The two companies also said they would jointly develop an electric vehicle
together, although they did not give further details of the plan.

 

The tie-up came after the world's biggest electric carmaker Tesla, which is
owned by multi-billionaire Elon Musk, was earlier this month reported by the
Reuters news agency to be planning to start mass production of its
Cybertruck at the end of 2023.

 

That would be two years after the original target for the highly-anticipated
pick-up truck that Mr Musk unveiled in 2019.

 

Taiwan-based Foxconn's investment is the latest cash injection into
Lordstown as it continues to run at a loss.

 

Separately on Monday, figures for the three months to the end of September
showed a net loss of $154.4m, wider than the $95.8m loss the company
reported for the same time last year.

 

Shares in Lordstown rose by almost 18% in extended trading in New York after
the announcements.

 

Last week Foxconn agreed a deal with Saudi Arabia's sovereign wealth fund to
produce electric vehicles in the kingdom.

 

The joint venture will operate under the brand name Ceer, which sounds like
the Arabic word for "drive".

 

Ceer will license technology from Germany's BMW and aims to start selling
its electric vehicles from 2025.

 

The deal is part of Saudi Arabia's push to move its economy away from its
dependence on fossil fuels.

 

Last month Foxconn's chairman Liu Young-way said he hopes the company will
one day make cars for Tesla as it ramps up electric vehicle manufacturing
operation.

 

Speaking at the company's annual Tech Day, he said the firm aimed to
replicate its success in manufacturing consumer devices as it expands into
making electric vehicles for major motor industry brands.-BBC

 

 

 

Sriram Krishnan: The Indian-American 'helping' Elon Musk run Twitter

Twitter's new owner Elon Musk has whipped up a storm after he sacked
thousands of employees last week.

 

The controversial way the firings happened - with many employees discovering
they had been laid off when they were shut out of their emails - sparked
anger, frustration and even lawsuits against Mr Musk.

 

Among those sacked were some of the firm's most senior executives.

 

In their place, Mr Musk has reportedly put together a small team of his own
- of friends and confidantes - and entrusted them with the job of
implementing his vision for Twitter.

 

They appear to include Sriram Krishnan, an Indian-origin software engineer
and former Twitter executive who left the company last year.

 

Last week, Mr Krishnan, who now works at the venture capital firm Andreessen
Horowitz or a16z, tweeted that he was "helping out Mr Musk temporarily".

 

Since then, his name has been trending in India, where many are bitter about
the unceremonious sacking of former CEO Parag Agrawal and other
Indian-origin executives.

 

It is not immediately clear in what capacity Mr Krishnan will be joining
Twitter - the BBC contacted him for comment, but he said he "can't help
right now with anything Twitter-related".

 

It's also hard to say how close his association with Mr Musk is at this
point, though reports have repeatedly described him as a part of his "inner
circle".

 

In a 2021 interview with Marina Mogilko, who runs a YouTube channel called
Silicon Valley Girl, Mr Krishnan said he and his wife Aarthi Ramamurthy
first got to know Mr Musk when he helped with "something Twitter-related" a
few years ago and that they "built a relationship through that".

 

The couple also met Mr Musk during a private tour of SpaceX's headquarters
in California "several years ago", according to The New York Times.

 

But the most prominent exchange between them came in February 2021 when Mr
Musk appeared in a talk show the couple hosted on Clubhouse.

 

Social media burst out with incredulity - the world's richest man had just
showed up on an invite-only app for an exclusive - and the show began to
trend heavily.

 

Within minutes, the chatroom quickly hit the Clubhouse limit of 5,000
concurrent listeners as Mr Musk spoke about life on Mars, the possibility of
aliens and about how one of his companies had wired up a monkey's brain to
"play video games with his mind".

 

The Good Time Show, which has since moved to other platforms, continues to
be hugely popular in the US.

 

The podcast offers a glimpse into the overlapping worlds of internet
culture, politics and the latest developments in Silicon Valley, where Mr
Krishnan and Ms Ramamurthy are well-known figures.

 

Marc Andreessen, the co-founder of a16z, says that Mr Krishnan is "perhaps
the only person in the world to have served in senior product positions in
the three biggest social platforms of our time", according to the company
website. In addition to Twitter, the 37-year-old worked at Microsoft, Yahoo,
Snap and Facebook in the past.

 

Ms Ramamurthy, meanwhile, worked at Facebook and Netflix before starting two
of her own companies.

 

Together, they have been described as a well-connected "tech power couple".

 

Chennai years

Mr Krishnan was born in the southern Indian city of Chennai in what he
described as a "very traditional" middle-income household.

 

His life changed when he convinced his father to buy him a computer - a
luxury in the late 1990s.

 

"It cost about 60,000-70,000 rupees [$730-840; £638-744], a large part of my
father's pay check," he told Ms Mogilko in the 2021 interview. "I told him I
would use it for my studies."

 

But he still did not have internet because a dial-up connection was
expensive and unaffordable.

 

So he would buy coding books instead to teach himself the basics, and
practise every night.

 

Mr Krishnan met Ms Ramamurthy online in 2002 while studying engineering at
Anna University in Chennai. By then, he was already on the path to becoming
a software engineer. So was Ms Ramamurthy, a student in the same college.

 

"A mutual friend wanted to start a coding project, so he decided to get the
two nerdiest people he knew - me and Aarthi - on board," he told Ms Mogilko.

 

The collaboration did not survive, but his and Ms Ramamurthy's relationship
did. The couple continued to chat on Yahoo messenger for a year until they
finally met in person.

 

Indians celebrate new Twitter CEO Parag Agrawal

What next for Twitter under Elon Musk?

In the months to come, the internet continued to be the foundation of their
relationship as they "idealised the myth of Silicon Valley" as the future of
American endeavour, and dreamed of being there someday.

 

"One of our first dates was watching bit-torrent copy of a 1999 Silicon
Valley film in my tiny room," Mr Krishnan said in the interview.

 

Their big break came a few months later when one of Mr Krishnan's blog posts
on Microsoft was noticed by a company executive, who then hired the couple
in 2005.

 

Life in America

In 2007, Mr Krishnan moved to the US and Ms Ramamurthy joined him six months
later.

 

Mr Krishnan has said in the past that it took them a while to get used to
living there, but work continued to be their solace.

 

After working at Microsoft, the couple moved on to other big tech companies.
They got American citizenship in 2017, a moment Mr Krishnan has described in
interviews as being on a par with their wedding and the birth of their first
daughter.

 

Last December, they started their career as podcasters - a decision born out
of pandemic-fuelled boredom, Mr Krishnan has explained in the past.

 

So, they decided to get on to Clubhouse, which became popular during the
pandemic, to have conversations about the tech space.

 

The interviews are woven with analysis and candid repartee with experts,
including the likes of Facebook co-founder Mark Zuckerberg and the late
fashion designer Virgil Aboh.

 

Twitter connection

While little is known about Mr Krishnan's ties with Mr Musk, he has been an
open admirer of the billionaire in the past, describing him as an
"inspirational person and an iconic founder".

 

He has also openly supported Mr Musk's vision for Twitter and criticised
practices such as de-platforming on the microblogging website.

 

"Having extrajudicial internet cops that lead to enforcement on your
platform is the road to dystopian authoritarianism," he wrote on Twitter
last month.

 

There's speculation that Mr Musk might have got Mr Krishnan - a
cryptocurrency expert - on board to integrate his doge bitcoin with Twitter.

 

Whether Mr Krishnan will become the next "Technoking" (Mr Musk's alternative
title for CEO) of Twitter or not, interesting times lie ahead for the social
platform - and Mr Krishnan could be right in the middle of it.-BBC

 

 

 

 

Liverpool owners Fenway Sports Group 'would consider new shareholders'

Liverpool's owners say they "would consider new shareholders" following
reports that the club is up for sale.

 

The Athletic reported that Fenway Sports Group (FSG), which bought Liverpool
in 2010, is "inviting offers".

 

FSG said it "remains fully committed to the success of Liverpool, both on
and off the pitch".

 

Liverpool, Premier League runners-up last season, are eighth in the table.

 

They have reached the last 16 of the Champions League, where they will face
Real Madrid in a repeat of last year's final.

 

An FSG statement read: "There have been a number of recent changes of
ownership and rumours of changes in ownership at Premier League clubs and
inevitably we are asked regularly about Fenway Sports Group's ownership in
Liverpool.

 

"FSG has frequently received expressions of interest from third parties
seeking to become shareholders in Liverpool.

 

"FSG has said before that under the right terms and conditions we would
consider new shareholders if it was in the best interests of Liverpool as a
club."

 

Liverpool supporters' union, Spirit of Shankly, said it hoped fans would be
consulted in any talks involving new owners of the club.

 

"We have seen reports today that FSG have put Liverpool FC up for sale," it
said in a statement.

 

"Spirit of Shankly have written to LFC for clarification and will await a
reply before making comment. We do, however, expect both the Supporters
Board and SOS to be engaged in some part of the process so that supporters
are front and centre of any sale and the first thoughts of prospective
owners.

 

"We will keep you updated."

 

FSG bought Liverpool in a £300m deal under its old name New England Sports
Ventures.

 

Basketball star LeBron James has been a part-owner of Liverpool since 2011
and has a 2% stake which cost him £4.7m.

 

He has since become a minor partner in FSG, which also owns baseball side
Boston Red Sox.

 

In March RedBird Capital Partners, a private investment firm, bought a stake
in FSG for about $735m (£533m).

 

Liverpool's principal owner John W Henry apologised to the fans in April
2021 after the club backed out of a proposed European Super League.

 

Liverpool signed striker Darwin Nunez for £64m, attacking midfielder Fabio
Carvalho for £5m and defender Calvin Ramsay for £4.2m this summer.

 

"From time to time I would be ready to risk a bit more but I don't decide
that and that's fine," manager Jurgen Klopp said in August.

 

Fenway Sports Group have seen the amazing price Chelsea were sold for
(£4.25bn) and also that they have got an additional rival in Newcastle
United. Six into four in the Champions League doesn't go, while seven into
four goes worse.

 

Newcastle's owners bought that club for the same price FSG paid for
Liverpool - £300m. FSG could easily sell for 10 times that amount - if not
more - if they are going to consider offers, and the Premier League remains
an incredibly lucrative proposition to investors and ultra high-worth
individuals.

 

The pound is weak at present, which makes that deal even more attractive, if
those investors are coming from overseas.

 

Arsenal have gone five years now without being part of the Champions League
and Liverpool's owners will have noted the loses Arsenal would have racked
up over that time. They won't want it for their own business, because they
have been very cautious about putting additional money in and they're
probably thinking it's a good time to sell - or certainly see what the
options are as far as the club is concerned.

 

It will probably mainly be American investors looking at Liverpool. The
Chinese government has dissuaded its corporations from investing in
football, so that's one area which has disappeared. I'm not sure there are
many domestically that would realistically have close to £4bn to buy
Liverpool.-BBC

 

 

 

Ten days of Twitter chaos

Elon Musk has a reputation for being an erratic, but brilliant business
leader. In his first 10 days as Twitter boss, we have seen more of the
former than the latter.

 

Twitter has long been thought of by Silicon Valley investors as poorly run -
but with bags of potential.

 

Mr Musk enticed his rich friends to invest with an argument that Twitter -
in the hands of someone who knew what they were doing - could be great. Free
speech would abound and profits would follow.

 

But the first 10 days as boss has exposed Mr Musk's lack of experience at
running a social media company.

 

It was all smiles when he took over, tweeting: "The Bird is Freed."

 

However, Mr Musk's initial set of policies seemed at odds with his
utterances in the summer.

 

Whereas he had said he was a "free speech absolutist" and Donald Trump would
be allowed on to the platform - he now argued that a "council" would be set
up full of "diverse" voices to decide on controversial moderation decisions
and permanent suspensions.

 

Mr Musk was announcing a policy that looked very similar to Facebook's -
which has an "oversight board" for these issues.

 

He also said in the short term that moderation policy would not be altered.

 

But he did announce one big change - to Twitter's verification system.

 

The platform will charge users who want a blue tick verified account $8 (£7)
a month, after initial reports of a $20 monthly fee were met with complaints
by some celebrities, including author Stephen King.

 

This price reduction may have already been decided, but it gave the
impression that the pricing had not been thought through, and that famous
users were dictating the policy.

 

Subscription route to profit

There were other criticisms too.

 

The policy was due to be implemented in a few days. Anyone could pay to get
verified and not only would they receive a blue tick, but they would also
have priority in replies, mentions and search. In other words, accounts
could now pay for prestige - and to be amplified on the platform.

 

The policy announcement instantly raised questions about authenticity and
fairness. Content would now float above others because the user had paid
their monthly sub.

 

Mr Musk said his policy was a way of addressing Twitter's bot problem. Mass
verification would weed out spam accounts. But this was also about money -
he believes a subscription model for Twitter is a route to profit.

 

Others raised questions about what opening up the verification process would
do to the spread of disinformation.

 

With verification open to anyone, how would Twitter be able to confirm
everyone was who they said they were?

 

With the US midterms around the corner, some worried that people could
pretend to be election co-ordinators or journalists, and spread voter
disinformation.

 

It seemed obvious that a lot of human resources would be needed to
adequately verify the expected flood of new accounts. with any of Twitter's
300 million daily active users able to apply.

 

During his first week, Mr Musk had reportedly asked managers to draw up
lists of employees to release.

 

On Thursday - fewer than seven days after Mr Musk officially bought the
company - staff were emailed saying their jobs were under threat. About half
of Twitter's 7,500 employees were then released.

 

That huge cull in staff raised more than a few eyebrows. Why pay $44bn for a
company and then sack half the staff?

 

The timing also seemed strange - how had an appraisal of who to fire been
drawn up so fast?

 

Employees were told that they would receive an email by 16:00 GMT on Friday
for official confirmation, but for many it never arrived.

 

Simon Balmain, a senior community manager who had been logged out of his
Twitter account, told the BBC he was in "limbo".

 

Twitter's offices were reportedly locked to all employees, except for those
in mission-critical jobs. Staff were locked out of their accounts en masse.
Few knew what was going on.

 

Instantly, questions were raised about moderation. How could Twitter take
down disinformation and hate speech on its platform with so many staff
released?

 

On Friday evening, Twitter's head of integrity, Yoel Roth, tweeted that
although half of the company had been sacked, those employed in front-line
moderation had experienced "the least impact".

 

Even so, how could Twitter usher in an unprecedented policy change of its
verified accounts structure in such a state of flux?

 

On Saturday it was announced that the new verification process was to go
ahead - anyone could apply to get a blue tick.

 

But then reports from The New York Times suggested that the process had been
delayed - until after the midterms.

 

It appeared Twitter recognised that bringing in such a consequential policy
change - so close to key elections - could cause havoc.

 

And then on Sunday, Bloomberg reported Twitter was now asking some fired
workers to come back - that it had been a mistake to let some of them go.

 

Twitter has not responded to BBC requests for comment on these stories.

 

It has been hard to follow at times - and we are only 10 days in. But the
chaos does suggest that if Mr Musk did have a short-term strategy for how to
change Twitter, it is not going exactly to plan.-BBC

 

 

 

Why an old train could point to a clean energy future

An old diesel freight train in British Columbia, Canada is about to get a
new lease of life.

 

Local firm Hydrogen in Motion (H2M) is currently converting the Green Goat
locomotive to run on a mix of hydrogen and battery power.

 

The so-called switcher locomotive performs tasks such as transporting small
loads of lumber or animal feed at rail yards.

 

If all goes to plan, H2M will have the engine running by the end of this
year, or early next.

 

"With the successful demonstration of this we would be looking at much
larger trains as well," says H2M president and chief executive Grace Quan.
"We'd be looking at converting entire fleets."

 

Hydrogen, which emits water but no carbon dioxide when burned, is often
touted as a fuel of the future.

 

There are already a few hydrogen-powered trains out there, such as the ones
currently being rolled out in the German state of Lower Saxony. The
technology made its debut there in 2018.

 

In the UK, a hydrogen locomotive, HydroFlex2, is undergoing testing in Long
Marston, Warwickshire.

 

But current methods of storing hydrogen in tanks, as a highly pressurised
gas or extremely cold (cryogenic) liquid, are expensive and potentially
unsafe. Scientists have long aimed to find ways of storing hydrogen in more
inert solid forms.

 

In H2M's case, the company has developed a nanomaterial within which
hydrogen is stored at relatively low pressure compared to other techniques.

 

By simply opening a valve and lowering the pressure, the hydrogen comes off,
just like when the CO2 in a carbonated drink gets released when you open the
bottle, says Ms Quan.

 

She adds that hydrogen could be especially useful for powering heavy
vehicles that go on long journeys, such as trains and lorries, though the
company has also developed a hydrogen-powered three-wheeler tuk tuk as a
small-scale demonstration.

 

"Depending on the size of the fuel cell, we could give up to a week's worth
of power," says Ms Quan of the tuk tuk.

 

But she adds that sourcing investment funds to develop her firm's technology
has not been easy. And many other solid state hydrogen storage solutions are
at an early phase of development.

 

Though some of them are exciting, the huge challenge they face is to prove
that they are commercially viable and worth choosing over, say, batteries
for certain applications.

 

Duncan Gregory at the University of Glasgow says that those working on
hydrogen storage technology at the moment are aiming to achieve a density of
5 wt% (weight per cent) or greater within the storage medium. "It's really
difficult to get to that," he explains.

 

There's plenty of effort, though. Take the method that Ian Chen at Deakin
University in Australia and colleagues are currently beavering away on.

 

It involves a technique called ball milling, a sort of grinding process
using tiny balls inside a canister. This grinding activity raises pressure
levels, encouraging gases to become absorbed by a powder inside the
canister.

 

Prof Chen and his colleagues have found that they can use this to store
gases including hydrogen in boron nitride powder.

 

"We like it because it's stable, it's not toxic, it's lightweight," says
Prof Chen, who adds that 5 wt% should be possible with this method.

 

In July, the team described how this process could be used to store
hydrocarbons in an academic paper. The detail of experiments in which they
managed to store hydrogen and other gases such as CO2 and ammonia are yet to
be made public.

 

Prof Chen is enthused by the possibility of storing hydrogen in this form,
which simply requires the application of heat to release the gas again. But
he admits that a long road lies between this research and commercial
success.

 

The team would need to design large-scale equipment and show that the method
would be truly cost-effective at scale. "We don't claim that we have solved
all the major problems," says Prof Chen.

 

The cost challenges were underlined in October when the German state of
Baden-Württemberg ruled out replacing diesel locomotives with
hydrogen-powered trains.

 

A study commissioned by the state concluded that the installation of
overhead electricity lines or battery hybrid trains provided much better
value for money over a 30-year period.

 

Prof Gregory, who is currently working with a separate, undisclosed firm on
hydrogen technology, adds that one of the potential issues with the ball
milling process is how long it takes. The small-scale experiments reported
by Prof Chen and his colleagues so far took 20 hours of milling.

 

Besides transportation, hydrogen stored in a solid state could have other
uses. A trial currently under way in Scotland will test hydrogen generation
and storage on one of the Orkney Islands

 

A machine-learning system will monitor weather patterns and decide when to
use electricity from nearby wind turbines to power the electrolysis process,
which is how hydrogen is extracted from water.

 

"It's a good test bed," says Enass Abo-Hamed, chief executive and co-founder
of H2GO Power. "You could have a week full of wind and then a week with
nothing."

 

The system will also determine when the hydrogen would best be released or
stored, in this case within a powder-like substance. This stored energy
would provide a potential resource during wind droughts.

 

A lack of wind has, unfortunately, helped to push up UK energy prices this
year.

 

Although it's not yet certain that the system on Orkney will actually be
connected to the local grid during the trial, Dr Abo-Hamed says it is a
possibility and, if so, the hydrogen could be used to power up to 70 homes.
In the future it could also, in theory, be converted back into a gas state
and used for domestic heating.

 

Hydrogen has potential as a boiler fuel that would be cleaner than natural
gas, argues Prof Gregory, though there are significant challenges in
implementing this, too.

 

Recent studies have cast doubt on hydrogen's potential as a fuel, both in
terms of heating and transportation.

 

Prof Gregory argues that, if someone can crack the hydrogen storage problem,
then that could fundamentally change how we power the world's vehicles -
from freight trains to cars.

 

"I can see in 20 years' time or whatever, when somebody eventually comes up
with a material that will do this job, I reckon batteries could well be
superseded by hydrogen," he says.-BBC

 

 

 

 

Facebook owner Meta expected to announce major job losses

Facebook's parent company Meta is reportedly planning to begin large-scale
lay-offs this week that will affect thousands of employees.

 

US media reported at the weekend that the job cuts could be announced as
early as Wednesday.

 

During Meta's disappointing third quarter results, chief executive Mark
Zuckerberg said staffing might fall.

 

"In 2023, we're going to focus our investments on a small number of
high-priority growth areas," he said.

 

Meta has about 87,000 employees worldwide across its different platforms,
which include Facebook, Instagram and WhatsApp.

 

The plans for job cuts follow difficulties across the tech sector as the
industry contends with slowing global economic growth.

 

Mr Zuckerberg said he expected some teams to "stay flat or shrink" over the
next year.

 

"In aggregate, we expect to end 2023 as either roughly the same size, or
even a slightly smaller organisation than we are today," he said.

 

Ad-supported platforms such as Facebook and Alphabet's Google are suffering
from advertisers' budget cuts as they struggle with inflation and rising
interest rates.

 

Last Thursday, Silicon Valley firms Stripe and Lyft announced large-scale
lay-offs, while Amazon said it would freeze hiring in its corporate offices.

 

Twitter, since being acquired by Elon Musk, released about half of its 7,500
employees last week.

 

Not only is the global economic situation an issue for Meta, but there is
also competition from TikTok, privacy changes from Apple, concerns about
massive spending on the metaverse and the ever-present threat of regulation.

 

Mr Zuckerberg has said he expects the metaverse investments to take about a
decade to yield positive results.

 

In the meantime, he says he has to reorganise teams to trim costs.

 

The social media company in June cut plans to hire engineers by at least
30%, with Mr Zuckerberg warning employees to brace for an economic downturn.

 

Meta's shareholder Altimeter Capital Management had previously said, in an
open letter to Mr Zuckerberg, that the company needs to streamline by
cutting jobs and capital expenditure. It added that Meta has lost investor
confidence as it ramped up spending and started focusing on the metaverse.

 

The company's market value over the past year is down to $600bn (£524bn).

 

Big tech is feeling the pinch of the global economic downturn.

 

The reason is that many of these giants, including Meta, rely on money from
digital ads, which has until now rolled in, in its billions. It's the reason
platforms like Meta are free of charge for people to use. They pay in their
data and their eyeballs, viewing the ads they are served.

 

Don't feel too sorry for them because to an extent, the funds are still
appearing. The issue is that most of this money comes not from the big
brands, but from millions of small and medium-sized businesses spending
small regular amounts.

 

As soaring costs and customers with less money to spend hit their revenues,
one of the first things these companies are likely to look to trim are their
marketing budgets.

 

Public companies like Meta have to release details about their finances
every three months.

 

Someone who was with Mark Zuckerberg when he did the last one just a few
weeks ago, told me he "didn't look like his usual self" - suggesting he was
also shocked by the downturn.

 

And now he's reportedly planning the largest lay-off in Meta's 18-year
history.-BBC

 

 

 

Apple: iPhone shipments delayed over China Covid lockdown

Apple has warned shoppers to expect delays in receiving its products after a
strict Covid lockdown forced the world's largest iPhone factory to shut.

 

The tech giant said its assembly plant in Zhengzhou, China is now operating
at a significantly reduced capacity.

 

Officials locked down the district that is home to the factory, run by
Foxconn, on 2 November for seven days.

 

It comes as China continues to target "zero Covid", using lockdowns to
tackle even minor outbreaks.

 

"As we have done throughout the Covid-19 pandemic, we are prioritising the
health and safety of the workers in our supply chain," said a statement from
Apple, which launched its new iPhone line in September.

 

"We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max
models. However, we now expect lower iPhone 14 Pro and iPhone 14 Pro Max
shipments than we previously anticipated and customers will experience
longer wait times to receive their new products."

 

The announcement will likely disappoint investors who were hoping China
would lift its Covid restrictions in the near future. Chinese stock markets
rose sharply on Friday on the back of rumours of an end to lockdowns.

 

Beijing's unyielding approach to arresting the spread of the virus has come
at a huge economic cost. But the country's leader Xi Jinping, who has
personally endorsed the policy, has given no indication that it will ease
soon.

 

The latest figures show the world's second-largest economy struggling to
cope with prolonged challenges posed by persistent Covid restrictions, a
property slump and the risk of a global recession.

 

China trade figures released on Monday showed its imports and exports
contracted unexpectedly in October. It is the first slump since May 2020.
Outbound shipments for the month dropped 0.3% from a year earlier which is
in stark contrast to a 5.7% gain in September. It was the worst performance
since May 2020.

 

The country reported 5,643 new Covid infections on Sunday, its highest daily
tally in six months. Zhengzhou, where the Foxconn factory is located, is the
capital of Henan province in central China and is home to about 10 million
people. It recorded 3,683 cases and 22 deaths on Monday.

 

China locks down area around biggest iPhone plant

Universal Resort shuts due to Beijing Covid cases

Cases were also detected inside the factory, prompting a sudden shutdown
that led to workers fleeing the premises. On Monday, the company started a
recruitment drive at its Zhengzhou plant. It is offering workers who left
the plant between 10 October and 5 November a one-time bonus of 500 yuan
($69; £60.88) if they return to work.

 

It is also offering a pay increase of 30 yuan an hour, according to a
statement posted on its recruitment WeChat account.

 

Foxconn, the world's largest contract electronics maker, has revised down
its fourth quarter outlook due to China's Covid control measures. The fourth
quarter is usually a busy time for the tech company as demand for
electronics rises ahead of the year-end holiday season in the West.

 

The Taiwan-based company said they are working with the Henan provincial
government "to stamp out the pandemic and resume production to its full
capacity as quickly as possible".

 

Foxconn, formally known as Hon Hai Precision Industry, accounts for 70% of
iPhone shipments globally.-BBC

 

 

 

 

Ebay urges shoppers to pick old over new this Black Friday

Online marketplace eBay is going back to its roots this month with a
decision to promote only second-hand or refurbished deals for Black Friday.

 

The platform says it wants to offer a different approach the pre-Christmas
shopping event.

 

It was time to move away from the "buying for buying's sake mentality" said
eBay's UK boss, Murray Lambell.

 

A focus on second-hand would help people with the rising cost of living and
was kinder to the planet, he said.

 

It will also benefit sellers on the platform offering refurbished goods,
like Ian Montgomery, who said the current squeeze on incomes meant there was
already a growing interest in his goods.

 

"We've felt a steep change in sentiment from our customers," said Mr
Montgomery. "Demand [for our products] is definitely growing."

 

He said sales at his firm, idoodirect, which offers coffee machines, mobile
phones, microwaves and other items, were up by 20% compared to last year.

 

For the rest of the retail industry, this Christmas trading season will be
challenging, with households having less discretionary income to spend.

 

The consultancy Retail Economics predicts that fewer people will take part
in Black Friday this year, with spending down 15% compared with previous
years.

 

Officially on 25 November, Black Friday has evolved from a chaotic rush to
grab bargains on the High Street, to a month-long blizzard of promotions,
including online.

 

However, Mr Lambell believes this industry-wide extravaganza doesn't deliver
the same value as it used to, and instead encourages a shopping "frenzy"
leading to unwanted spending and waste.

 

Ebay said its new strategy was about moving to "thoughtful consumption".

 

Ebay was originally launched as an online platform for people to resell used
items, but the majority of its sales are now new items. New items will still
be available over the Black Friday period, but active promotion will be
focused on used goods.

 

The firm made an initial move to focus its marketing on the "pre-loved"
market earlier this year with its sponsorship of ITV's Love Island.
Contestants dressed in second-hand bikinis and other outfits, in contrast to
previous series when they were given brand new items to wear on the show.

 

Other retailers have also recognised customers' growing interest in buying
more second-hand goods.

 

At the start of this month, Zara launched a new pre-owned service, offering
shoppers the chance to resell, repair or donate clothing bought from its
stores. Primark has also launched a vintage concession in two of its
flagship stores. Meanwhile, Marks & Spencer and John Lewis have launched
their own initiatives as well, aimed at tapping into a market which is
growing fast.

 

In a recent survey of shoppers, eBay said it found that around half planned
to shop for second-hand or refurbished presents this Christmas.-BBC

 

 

 

 

Millions to receive latest cost-of-living payment

Eight million people on low incomes who receive certain benefits will start
getting the second instalment of a targeted cost-of-living payment.

 

The £324 payment would be made directly into bank accounts between now and
23 November, the Department for Work and Pensions (DWP) said.

 

Those who qualify via tax credits will receive it by the end of the month.

 

A first grant of £326 was paid earlier in the year and, together, they are
designed to assist with rising bills.

 

When will I get the £400 energy discount?

The support, totalling £650, is for those across the UK on certain benefits,
including Universal Credit and pension credit. It is the largest part of
direct financial assistance from the government to tackle costs such as
energy bills.

 

The funds are paid directly into the same accounts used to receive benefits
payments, with the reference of the recipients' national insurance number
followed by "DWP COL".

 

Everyone is being urged to take care not to be drawn in by scams which
exploit those expecting the money. The official payments will be automatic,
and no additional details are required to be submitted.

 

To be eligible for the latest instalment, people must have been claiming and
entitled to a benefits payment between 26 August and 25 September, with the
exception of pensioner households, who may be able to have a new pension
credit claim backdated.

 

People are not eligible for these payments if they receive New Style
Employment and Support Allowance, contributory Employment and Support
Allowance, or New Style Jobseeker's Allowance - unless they get Universal
Credit.

 

Anyone who thinks they are entitled to the help but who has not received it
should contact the office that pays their benefit or tax credits, or report
it here.

 

The 1.1 million people who only receive tax credits, rather than any of the
other benefits, will receive the second instalment from HM Revenue and
Customs (HMRC) between 23 and 30 November. The payment reference will be
"HMRC COLS".

 

Cutbacks

Work and Pensions Secretary Mel Stride said: "We understand that people are
struggling and that is why we have consistently acted to ensure millions of
low-income families are supported. We will continue to act with compassion
as we navigate challenging global economic circumstances."

 

He said the money would help the most vulnerable who were worrying about
their finances through the winter months.

 

The payment comes as data from finance company Barclaycard suggested that
spending on essential items, such as fuel and groceries, increased by 5.7%
year-on-year in October.

 

That was steeper than September's growth of 3.3%, reflecting the impact of
rising prices, it said. Barclaycard sees nearly half of the UK's credit and
debit card transactions

 

It predicted that many consumers would set spending limits for
Christmas.-BBC

 

 

 

Nigeria: South-East Not Marginalised in Buhari's Rail Project - Federal Govt

"There is no deliberate attempt whatsoever to marginalise the South-east and
if anything, that is the one part of the country that has benefited the most
on PMB infrastructure projects."

 

The federal government says the South-east region of the country is not
marginalised in the rail projects being executed by President Muhammadu
Buhari's administration.

 

The Minister of Transportation, Muazu Sambo, stated this on Monday in Abuja
while presenting the achievements of his ministry at the second edition of
the PMB Administration Scorecard 2015-2023 organised by the Ministry of
Information and Culture.

 

 

Reacting to a question on why the South-east was restricted only to narrow
gauge rail lines, the minister said it was a wrong conclusion.

 

Mr Sambo said, "There is no deliberate attempt whatsoever to marginalise the
South-east and if anything, that is the one part of the country that has
benefited the most on PMB infrastructure projects.

 

"The narrow gauge you probably are referring to is the one that runs from
Maiduguri, all the way through Jos, up to Port-Harcourt.

 

"If that is the one you are talking about, first of all, I will let you know
that Maiduguri, Jos and several other cities the rail lines traversed are
not in the South-east."

 

According to the minister, the second option then was the narrow gauge
contract. "That was being considered by my predecessor in office, two
options were open to the ministry.

 

"Either to rehabilitate the narrow gauge at a cost of about $3 billion
dollars or to do a standard gauge at a cost of about $12 billion.

 

"We don't have the money, we are going to borrow anyway. So, we thought
whatever the standard gauge will give us, the narrow gauge will also give
us."

 

Mr Sambo added that looking at the pros and cons of the corridor, the narrow
gauge would convey more cargoes.

 

He added that the only fundamental difference between the narrow gauge and
the standard gauge was the speed.

 

Justifying his position that the South-east region benefited the most, the
minister said it is Mr Buhari's administration that constructed the second
Niger Bridge that had defied all previous governments.

 

He said the bridge would be inaugurated by the president before the end of
the year.

 

Premium Times.

 

 

 

 

Kenya: Standard Gauge Railway Disputes to Be Resolved in China If Friendly
Consultations Fails

Nairobi — Disputes arising from the Standard Gauge Railway (SGR) will be
resolved in Beijing, China, if friendly consultations fails.

 

This was revealed in the SGR contract that was signed by Kenya's National
Treasury (representing the Government) and the Export-Import Bank of China.

 

"Any dispute arising out of or in connection with this Agreement shall be
resolved through friendly consultation," the contract reads.

 

"If no settlement can be reached through such consultation, each party shall
have the right to submit such dispute to the China International Economic
and Trade Arbitration Commission (CIETAC) for arbitration," the document
shows.

 

 

CIETAC, which is one of the oldest and busiest arbitration institutions in
the world, is the leading mediation institution in Mainland China.

 

Established in April 1956, CIETAC was initially called Foreign Trade
Arbitration Commission.

 

"The arbitration shall be conducted in accordance with the CIETAC's
arbitration rules in effect at the time of applying for arbitration," it
stated.

 

Yesterday, Roads, Transport and Public Works Cabinet Secretary Kipchumba
Murkomen made public SGR contract details that cost Sh670 billion.

 

Murkomen shared the documents on his social media account as well as with
the majority leaders of both the Senate and the National Assembly.

 

The loan terms place the interest rate of the loan at 2.0 percent per year.
The Management fee and Commitment fee of the loan are both pegged at 0.25
percent.

 

The loan has a 20-year tenure and seven-year grace period

 

The contract also provides that any goods purchased using proceeds from the
SGR will be sourced from China preferentially.

 

-Capital FM.

 

 

 

 

Africa: Perceived Versus Real Risk In African Credit Ratings

Washington, DC — The ratings of African governments have enabled a robust
Eurobond market for African sovereign bonds with over $300 billion issued in
the last couple of decades. Maintaining access to this market has persuaded
many African countries not to seek debt relief under the misconceived G-20
Common Framework (CF). Only three African countries have filed to use the
Framework - Zambia, Ethiopia and Chad. None of them has an agreement two
years after the CF was announced.

 

The G-20 approach has been ineffective for two important reasons. First, it
in effect requires those who file for relief to default on their Eurobonds,
closing off the country from capital markets. Most countries chose to
continue to be able to issue Eurobonds. Second, CF is available only to the
Least Developed Countries and does not apply to Middle Income Countries like
Sri Lanka, which is in default.

 

There is a school of thought - at the African Union, for example, and parts
of the United Nations - that African ratings are too low, due to a
misperception of African risk. By contrast, major industrialized countries
like Germany and the United States enjoy high AAA ratings that allow them to
borrow at lower interest rates, whereas Zambia has languished with D ratings
since it defaulted two years ago and has no market access.

 

 

The UN Economic Commission for Africa, which identifies liquidity risk as
one reason for this premium, has proposed a Liquidity Support Facility to
reduce risk. The African Union and others have proposed an African rating
agency to provide alternative ratings, which is not a bad idea if Africa has
an investor base that will pay attention to such an agency – as Chinese,
Japanese, Indian, Malaysian and Nigerian investors listen to rating agencies
based in those countries.

 

One such new agency – the Sovereign Africa Rating - just assigned a BBB
rating to South Africa, which has lower, non-investment grades by the big
three - Standard & Poor's, Moody's, and Fitch. The credibility of an agency
that gives out such higher ratings is likely to be discounted by
international investors just like grades in different-tier educational
institutions.

 

 

Rating criteria of the international agencies are indeed “one size fits all”
by design as they are meant to assess the likelihood of repayment or
default. They use metrics from a long history of sovereign defaults (see
Reinhart and Rogoff in “This Time Is Different”), tested over time as seen
in corporate default studies. The agencies justify low African ratings on
the basis of low levels of economic development, undiversified economies,
high levels of debt, limited financial flexibility and high political risks.

 

But they err from time to time - as, for example, on South Korea during the
Asian financial crisis.  -- as no such system is perfect. Rating agencies do
learn from such mistakes or market comments and make adjustments in their
criteria from time to time.

 

The greater benefit for countries and companies in Africa seeking ratings is
from learning the ropes and getting a rating they deserve -- nothing less,
as they often can and do fall short. And with improved performance they can
achieve better ratings over time. One client – First Bank of Nigeria – was
just upgraded by Fitch under our advice a few weeks ago.

 

There is a role for an Africa-focused rating agency for investors who
concentrate on Africa and seek only relative risk assessment across this
universe. For them the definition of investment grade need not be the same
if their risk tolerance is higher. But investors will generally continue to
rely on the big three rating agencies.

 

Mahesh Kotecha, born in Uganda and a naturalized U.S. citizen, is President
of Structured Credit International, which advises African supranationals,
banks and governments. He is a member of the Bretton Woods Committee,
International Advisory Panel of the East African Development Bank, Advisory
Council of UN Capital Development Fund, Chatham House, and the Council on
Foreign Relations, where he directed a Roundtable on Capital Flows to
Sub-Saharan Africa, which recommended in 2002 that African governments seek
sovereign ratings to reduce perceptions of risk and to attract capital.

 

 

 

South Africa: Eskom Loan 'Significant Step' for Just Energy Transition

Eskom board chairperson Mpho Makwana says the R9 billion concessional loan
approved for the repurposing of the Komati Power Station is a "significant
step" for South Africa's transition towards clean energy.

 

The coal fired power station was shut down last week after serving the South
African public for at least 60 years and it is set to become South Africa's
first station to be repurposed into a renewable energy site.

 

"This is a significant development for South Africa's Just Energy Transition
to renewable energy as it brings the much-needed funding to enable Eskom to
train its employees and members of the host communities to empower them to
continue playing a central role in the provision of clean energy for the
country," Makwana said.

 

 

According to Eskom, the loan will be guaranteed by National Treasury with
the repurposing project already approved by the Eskom board.

 

"The loan facility will cover three main components: decommissioning of the
Komati Power Station, repurposing and repowering of the station and other
elements of the Just Energy Transition, including provision for the training
of Eskom employees, community development and stakeholder initiatives.

 

"The first phase of the repurposing will install 150MW of photovoltaic, 70MW
wind generating capacity, 150MW of Battery Energy Storage System and
synchronous condenser," the power utility said.

 

A just transition

 

Eskom CEO Andre de Ruyter said the power utility's recent agreement with the
South African Renewable Energy Technology Centre (SARETEC) to educate,
reskill and upskill former Komati Power Station workers and qualifying
surrounding community members is critical in ensuring that they are not left
behind in the energy transition.

 

"This is in line with Eskom's drive to ensure that we prepare our people and
have a pipeline of local skills ready for the inevitable transition, which
will be just.

 

"Given the accelerated global movement towards investment in a clean energy
transition, there is a need in South Africa to upskill, retrain and develop
a workforce to take full advantage of the opportunities presented by this
transition. To achieve this Eskom is working with its recognised labour
unions and representatives of the host community," de Ruyter said.

 

-SAnews.gov.za.

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2022

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

National Unity Day

 

December 22

 


 

Christmas Day

 

December 25

 


 

Boxing Day

 

December 26

 


Companies under Cautionary

 

 

 


CBZH

Meikles

Fidelity

 


TSL

FMHL

Turnall

 


GBH

ZBFH

GetBucks

 


Zeco

Lafarge

Zimre

 


 

 

 

 


 <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.

 


 

 


(c) 2022 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

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