Major International Business Headlines Brief::: 20 October 2022

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Major International Business Headlines Brief::: 20 October 2022 

 


 

 


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

 


 

 


 

ü  Tesla sales climb but miss expectations

ü  Amazon's Jeff Bezos in economy warning: 'Batten down hatches'

ü  Brazil's winemakers aiming to toast more global sales

ü  People plan for smaller Christmas as prices soar

ü  Gloucestershire energy-saving firm facing soaring energy costs

ü  People delay turning heating on as UK inflation soars

ü  HSBC climate change adverts banned by UK watchdog

ü  Hong Kong shares hit lowest level since 2009

ü  South Africa: Eskom Extends Stage Three Load Shedding - South African News Briefs - October 20, 2022

ü  Nigeria: How Pinnacle's $1bn Offshore Subsea Petroleum Terminal Will Address Govt's N5bn Daily Loss in Apapa

ü  Nigeria: Mobile Payments Surge As Cheque Transactions Slide From 10.8m to 4.5m in 5 Years - Report

ü  Nigeria: AfDB, FCMB Sign $50m Agreement to Enhance Access to Finance for SMEs

ü  Nigerian Authorities Hopeful After Massive Oil Theft Busts

ü  South Africa: Finally, Ex Steinhoff CEO Markus Jooste's Assets Seized In Reserve Bank Raid

ü   

 


 <mailto:info at bulls.co.zw> 

 


 

Tesla sales climb but miss expectations

Supply shortages, logistics bottlenecks and rising costs are hitting Tesla as it rapidly ramps up production of its electric cars.

 

While the problems have improved in recent months, they remain immediate challenges, Tesla said in a financial update for investors.

 

Revenue was lower than expected in the three months ending in September, as car sales fell short of expectations.

 

But at $21.45bn (£19.12bn), it remained more than 50% higher than a year ago.

 

Tesla, led by billionaire Elon Musk, has been growing aggressively in recent years, opening new factories in the US, China and Germany and boosting output.

 

The company delivered 343,000 cars in the quarter - a record that was up more than 40% from the same period last year.

 

The firm produced more cars than were sold, raising fears that demand may be slowing, as rising prices, higher borrowing costs and a major economic slowdown in the key China market discourage buyers.

 

Mr Musk conceded there was weakness in China but beat back suggestions that demand was cooling.

 

When Tesla shared the delivery figures earlier this month, the company said the gap was due to difficulty finding vehicles to transport cars to customers.

 

"There weren't enough boats, there weren't enough trains there weren't enough car carriers," he said on a conference call to discuss the results, adding that the firm expects to sell every car it makes.

 

Deliveries of its own much anticipated electric truck are due to start in December, the firm said. The company reported $3.3bn in profit, up significantly from a year ago.

 

But questions about Tesla's growth path, as well as billions of dollars in stock sales by Mr Musk as he prepares a $44bn takeover of Twitter, have weighed on the company's shares in recent months.

 

Prices for the stock have dropped 40% this year, wiping billions of dollars off the company's value.

 

Tesla dominates the electric vehicle market in the US, but it faces far more competition in Europe and China, where such cars are more popular.

 

In the US, rivals have also been ramping up their efforts.

 

German carmaker BMW said on Wednesday that it would spend $1.7bn to expand its electric vehicle production in the US.

 

A few months ago Elon Musk - no shrinking violet when it comes to self-promotion - said demand for Teslas was through the roof

 

"Right now demand is exceeding production to a ridiculous degree," he said.

 

And yet from these figures, that doesn't seem to be happening.

 

In fact Tesla is making more cars than it's selling.

 

Not only that, but there are a series of financial pressures eating away at profitability. Supply chain issues and the costs of raw materials are hurting profits.

 

Tesla investors are much more concerned about its long-term potential than short term financial pressures though.

 

That's why the uncertainty about demand for Teslas is particularly damaging. It helps to explain why a seemingly solid set of results has seen a fall in Tesla's share price.

 

Many Tesla investors worry that Mr Musk isn't spending enough time on the company - after committing to buy Twitter. These results won't likely change that view.-BBC

 

 

 

Amazon's Jeff Bezos in economy warning: 'Batten down hatches'

Amazon founder Jeff Bezos has added his voice to the chorus of voices warning of hardship ahead for the US economy.

 

On social media, the billionaire wrote that the economy was sending a signal to "batten down the hatches".

 

Growth in the US has already contracted for two quarters in a row, a milestone that in many countries - though not the US - is considered a recession.

 

As the US central bank raises interest rates to fight rising prices, many economists expect further slowdown.

 

The drumbeat of concern recently forced US President Joe Biden to address the issue.

 

In an interview last week, he said "I don't think there will be a recession. If it is, it'll be a very slight recession".

 

In the US, a panel of economists is charged with declaring the formal start and end of recessions. They use a number of indicators, in addition to gross domestic product in making the determination.

 

With midterm elections looming in November, Mr Biden has tried to make the case that the slowdown in economic activity is a healthy shift from the growth surge that followed the pandemic lockdowns.

 

Job creation remains robust, unemployment rates low, and households finances relatively healthy.

 

But as inflation has remained much higher than the 2% goal - hitting 8.2% last month - hopes that authorities will be able to get the issue under control without triggering a potentially severe slowdown have waned.

 

"We have got to get inflation behind us. I wish there were a painless way to do that. There isn't," Federal Reserve Chairman Jerome Powell said last month.

 

The US housing sector - which accounts for about 15% of the economy by some estimates - has already slowed sharply, as borrowing costs approach 7% - the highest rate since 2002, prompting job cuts at banks and other property firms.

 

In updates to investors in recent days, bosses at the biggest US banks warned of darker days ahead.

 

"In my conversations with CEOs, they tell me they are rethinking business opportunities and would like to see more certainty before committing to longer term plans," Goldman Sachs boss David Solomon said.

 

"We're tightening economic conditions very, very quickly. And when you tighten economic conditions it has an impact on these things"

 

Jamie Dimon at JP Morgan, who has previously warned of a "hurricane" ahead, said consumers would likely run through the cushion in their bank accounts by the middle of next year.

 

Amazon, which will update investors later this month, has also been grappling with a slowdown in its e-commerce business. It has slowed hiring and said it is working to cut expenses.

 

Mr Bezos stepped down as Amazon chief executive last year but remains chairman of its board. He has been critical of the president's economic policies in the past, faulting Mr Biden for being disingenuous about the forces driving prices higher.

 

He shared a video of Mr Solomon discussing the need to be cautious, given the economic uncertainties.

 

"Yep the probabilities in this economy tell you to batten down the hatches," Mr Bezos wrote.-BBC

 

 

 

Brazil's winemakers aiming to toast more global sales

Giorgia Mezacasa says that overseas drinkers are often taken aback by the high standard of the wines her colleagues produce.

 

"The client buys the first bottle because they're curious, and they are surprised by the quality," says Ms Mezacasa, who is export supervisor for Aurora, the largest winery in Brazil.

 

"Then the second bottle they buy is a confirmation that we are producing top-quality wine."

 

Brazil is not the first country most people associate with wine. Much of the vast nation has tropical weather that is too hot and humid for growing vines.

 

Yet down in the far south of Brazil, near the borders of Argentina and Uruguay, the climate is far milder. And it is here in the state of Rio Grande do Sul that Brazil now has a thriving wine industry, with more than 1,000 wineries.

 

Last year, Brazil produced a collective 3.6 million hectolitres of wine, according to country-by-country figures from the International Organisation of Vine and Wine. That's certainly enough for a good party, but it is tiny compared with the giants of the wine world.

 

Italy, the largest producer, made 50.2 million hectolitres in 2021, while second-placed France was on 37.6 million. Meanwhile, Argentina, which has the biggest winemaking sector in South America, totalled 12.5 million hectolitres.

 

To try to help it catch up, Brazil is now continuing with an export drive, hoping to encourage wine fans around the world to try its bottles. Currently it exports just 2% of its production.

 

As Rafael Romagna, manager at export agency Wines of Brazil, explains, they have a strategic approach.

 

His organisation was set up in 2004 by wine trade body Brazilian Union of Viticulture to work with the government to introduce Brazilian bottles to wine fairs and trade shows around the world.

 

So instead of each Brazilian winery having to do overseas promotion all on its own, Wines of Brazil would do it for all of them. "A Brazilian winery would hardly have the ways to afford the costs to go on their own to these events," says Mr Romagna.

 

"As part of the strategy, Wines of Brazil enrols Brazilian wines in blind tastings, often with positive results. Our country is not recognised as a producer yet, so people are surprised when they find out they had just tasted a Brazilian wine, and more than that, a product with high quality."

 

Aurora's Ms Mezacasa says that patience is required to build up an export business. "Things don't happen overnight, and there's a whole study needed to define that a product is well-received among overseas clients."

 

She adds that while Brazilian wine will probably be compared with that of its neighbours Argentina and Uruguay, their focus is mostly on reds, while Brazil has developed a specialism for sparkling wines made the same way as champagne.

 

"We prefer to focus on what we do better - sparkling wine," she says.

 

Aurora now exports its wine - sparkling, plus red, white and rosé - to more than 20 countries, including China and Japan. The winery itself was set up back in the 1930s, and remains a co-operative co-owned by some 1,100 families that all grow their own grapes.

 

Flavio Pizzato, a partner at fellow Brazilian winery Pizzato, says that the country holding the 2014 World Cup and 2016 Olympics helped to boost wine exports, as the two events increased global interest in all things from Brazil.

 

His company now exports to England, Germany and the US, and he agrees that you need to take your time to build up overseas demand.

 

"Exporting is a long-term project. It's not an adventure of someone looking to export once, it's constant work. And Brazilian wine has evolved a lot, not only the quality of our products, but commercially too."

 

For Rafael Boscaini, export analyst at a third Brazilian winery, Miolo, overseas sales are driven by wines getting good scores at international professional tastings. He says this makes buyers take notice.

 

Mr Boscaini adds that canny Brazilian wineries now produce wines at various price points. "Some countries look for more affordable wines, others prefer more expensive wines, so it's very particular."

 

But while Brazil's winemakers will inevitably say that their wines are excellent, what do overseas wine experts think?

 

Evan Goldstein, a San Francisco-based master sommelier, says that the quality can be very high. "While Brazil may be a new participant for many on the global wine stage, once people try the wines they are - at the top end of the range of offerings - quite pleasantly surprised and delighted."

 

UK-based master of wine Rebecca Gibb says that the problem for Brazilian winemakers is encouraging overseas drinkers to try them in the first place.

 

"While there's nothing to say Brazil can't find a small niche in the UK market, large volume success is hard to imagine, but there are some open-minded importers who could champion it," she says.

 

"There would have to be a compelling price, quality level or signature wine style like New Zealand sauvignon blanc or Argentine malbec to gain real traction. Brazil's sparkling wines, for example, are good, but why is a champagne, prosecco or cava drinker regularly going to opt for Brazilian bubbles?"

 

Back in Brazil, Ms Mezacasa hopes that British drinkers and those elsewhere will give Brazilian wine a chance.

 

"When it comes to wine Brazil is still relatively unknown, so our wines seem exotic," she says. "And that's what draws people's attention."-BBC

 

 

 

People plan for smaller Christmas as prices soar

People are planning for smaller Christmases this year as prices soar, with a BBC survey uncovering growing concern about the squeeze on finances.

 

Three in five (62%) people polled said their Christmas and festive spending plans will be smaller than usual.

 

Adults with a household income under £40,000 are more likely to say their plans will be much smaller this year.

 

Prices rose at their fastest rate for 40 years again in September, with UK inflation expected to keep rising.

 

The price of food went up along with energy bills and transport costs.

 

The rising cost of food, fuel and energy dominate fears about rising costs, the survey of 4,132 shows.

 

 

Just 3% of those polled in the Savanta Comres survey for the BBC said their Christmases will be bigger than last year.

 

The survey was conducted earlier this month before Chancellor Jeremy Hunt reversed some tax cuts, saying that support on energy bills would be limited for some, and warned of further government spending cuts.

 

Kristie, from Somerset, says she's worried this year's festive lunch will be a microwave meal from Tesco.

 

Last year, she and her son had a proper Christmas meal with turkey, ham and vegetables.

 

But she says this year, she won't be able to afford the electricity to use her cooker for the time it takes to prepare a turkey.

 

"I can't afford to put on the cooker - I'm using the microwave. So how am I going to cook Christmas dinner for me and my son?", she says.

 

"You're better off getting a takeaway Indian meal from Tesco and sticking that in the microwave."

 

Her plans for presents are also being scaled back, due to rising living costs.

 

"My son has made a pact with me that this year we're going to get a stocking each and stocking fillers, because we can't afford anything else," she says.

 

People's plans for Christmas have already been impacted for two years in a row due to the pandemic.

 

In December 2020, there were strict restrictions on household mixing due to a surge in coronavirus.

 

The following year, the emergence of the Omicron variant did not lead to restrictions being placed on hospitality, but businesses said customer confidence in eating and drinking out took a hit, with a flurry of cancellations and scaled-back celebrations in the run-up to December 25.

 

For many retail and hospitality firms, this is their main money-making period of the year, and they will have been hoping for a return to normality.

 

Young adults aged between 25-34 are significantly more likely to say their spending plans will be smaller than usual this year compared with those in other age groups.

 

Almost three quarters of people in that age group say their Christmas spending will be on a smaller scale.

 

However, people are not necessarily putting money away for the big day, with most (55%) respondents saying they have not been saving money ahead of Christmas.

 

The two in five respondents who have put money aside mainly plan to spend it on presents and food and drink, with fewer people saving for travel and social events, such as parties and nights out.

 

The cost of living rose by 10.1% in the 12 months to September - the fastest rate in 40 years - driven by sharp price rises in energy and food costs.

 

Food and energy prices have been going up around the world following Russia's invasion of Ukraine which has disrupted production and exports, as well as pushing up prices at supermarket tills.

 

A spokesman for the Treasury said the government had reversed the rise in National Insurance and made changes to help people on universal credit.

 

"Countries around the world are facing rising costs, driven by Putin's illegal war in Ukraine, and we know this is affecting people here in the UK," he said.

 

"That is why we have taken decisive actions to hold down bills this winter through the Energy Price Guarantee and provided at least £1,200 of additional cost-of-living support to eight million of the most vulnerable households."-BBC

 

 

 

 

Gloucestershire energy-saving firm facing soaring energy costs

Three quarters of companies in the west country are worried about rising costs, according to a new survey.

 

Business West heard from more than 400 small firms, and 73% told them inflation was their number one worry.

 

Even a company that makes energy-saving gadgets is facing rising energy bills of its own.

 

As official statistics record inflation at 10.1%, their story is typical of the squeeze that many small firms are facing.

 

Their costs are rising, but they know their customers have less money, so it is hard to put up prices.

 

Matthew Webber was smiling, nonetheless, when I met him in the new purpose-built factory off the M5 in Gloucestershire.

 

The company he runs is successful, and has surely the perfect product for an energy crisis.

 

Inside most domestic boilers and radiators swirls a dark black sludge. Metal shavings from the insides of pipes mix with other dirt to slow up the boiler, and even cause breakdowns.

 

Twenty years ago Chris Adey, a heating engineer, invented a new filter in his garden shed. It uses a magnet to suck all the metallic gunge out of the water in a central heating system.

 

His idea has been widely copied, but the original products made in Gloucestershire still sell well. In an energy crisis, the company says their filters save customers money, and potentially expensive breakdowns.

 

But ironically the company itself faces soaring energy bills of its own.

 

'We're taking a hit'

Matthew Webber now runs Adey Innovation, and told me their energy bill had risen "like every other household and business in the country."

 

He said, "We're always looking at smarter ways to produce our products, but the reality is we're having to take the hit on these increased prices."

 

Rising gas, electric and fuel bills are the main engine driving up inflation in the British economy, according to the ONS figures out today.

 

But they are not the only factor. As the Pound fell in value on international money markets, many of the components used in the Gloucestershire factory went up in price.

 

Mr Webber explained: "We spend over $20m a year on components from abroad, so the weakening pound has really had an impact on us."

 

Can they pass on all these rising costs? No, he tells me, they know their customers are short of money too, and "we do face international competition, so we just have to take the hit."

 

This is typical of the dilemma facing most small firms at the moment. In the survey for Business West, hundreds told of worries over rising prices - and falling sales.

 

Claire Ralph, Policy Manager at Business West, explained: "Businesses are telling us they're stuck in a bind.

 

"Do they pass on those costs to consumers, and lose sales, or try to absorb them - which is not sustainable in the long run?"

 

Many companies I speak to tell me this is a daily challenge: Rising costs, rising interest rates, and customers wanting lower prices.-BBC

 

 

 

 

People delay turning heating on as UK inflation soars

The rate at which prices rose in September has returned to a 40-year high as a BBC survey uncovers growing concern about the squeeze on finances.

 

The price of cereals, milk and cheese all went up along with energy bills and transport costs.

 

Some 85% of those asked are now worried about the rising cost of living, up from 69% in a similar poll in January.

 

As a result, nine in 10 people are trying to save money by delaying putting the heating on.

 

The rising cost of food, fuel and energy dominate fears about rising costs, the survey of 4,132 shows.

 

Almost half of people (47%) polled in the Savanta Comres survey for the BBC said that energy bills were the most significant increase in cost seen by their household.

 

Nearly nine in 10 of those asked were turning lights off to save money in the last week, as well as turning electrical goods off standby.

 

The survey was conducted earlier this month before Chancellor Jeremy Hunt reversed some tax cuts, said support on energy bills would be limited for some, and warned of further government spending cuts.

 

Are you setting up a warm bank? We want your stories

.

But more than half of those polled (56%) expect their financial position to worsen in the next six months. It was 30% in January.

 

Two-thirds of renters who were asked said it had been difficult to pay for essential costs in the last six months. A similar proportion of everyone surveyed said that government support was insufficient to help people with the rising cost of living.

 

The cost of living rose by 10.1% in the 12 months to September - the fastest rate in 40 years - driven by sharp price rises in energy and food costs.

 

Food and energy prices have been going up around the world following Russia's invasion of Ukraine which has disrupted production and exports, as well as pushing up prices at supermarket tills.

 

 

September's inflation figures are usually used to calculate next April's rise in the state pension in the UK and the increase in some benefits. It is unclear if the government still intends to stick to this policy or cut down on spending by increasing payments by a lower level by linking the increase to wages instead.

 

Over half (52%) of UK adults say it has already been difficult for their household to pay essential household costs in the last six months.

 

People are changing their spending habits to help them cope, cutting back on clothes spending for themselves and their children, taking fewer day trips as well as travelling less to meet up with family or friends, the BBC survey shows.

 

People are also putting off big purchases such as buying a new car, sofa or TV or renovating their homes.

 

Among UK adults worried about the cost of living, two thirds have also said this is having a negative effect on their mental health.

 

Naomi Naylor from Durham is in her of third year of studying to be a paramedic at the University of Sunderland. She worries about the impact higher petrol costs will have on her finances.

 

Three-quarters of workers in the North East normally commute to work by car, so rising fuel prices can really hit personal finances.

 

"I commute in and out every day, it's cheaper not paying for accommodation. Petrol is my biggest outlay, it's costing me more than it used to."

 

The 21-year old says she and most of her friends want to stay around this area, but there's also competition for graduate paramedic jobs, which means some may need to look further afield for work.

 

This could push up their travel costs even more, adding to her concerns.

 

In Chancellor Jeremy Hunt's emergency announcement on Monday to cut back government spending, the help to limit energy bills rises for households was cut back from two years to six months.

 

The Treasury will review support given from April, but Mr Hunt said there would be "a new approach" targeting those in the most need.

 

A spokesman for the Treasury said the government had reversed the rise in National Insurance and made changes to help people on universal credit.

 

"Countries around the world are facing rising costs, driven by Putin's illegal war in Ukraine, and we know this is affecting people here in the UK," he said.

 

"That is why we have taken decisive actions to hold down bills this winter through the Energy Price Guarantee and provided at least £1,200 of additional cost-of-living support to eight million of the most vulnerable households."-BBC

 

 

 

 

HSBC climate change adverts banned by UK watchdog

The UK's advertising regulator has banned two HSBC advertisements for being "misleading" about the company's work to tackle climate change.

 

The Advertising Standards Authority (ASA) said the banking giant can no longer run the ads which promoted its plans to reduce harmful emissions.

 

The watchdog said that the posters "omitted material information" about HSBC's activities.

 

It marks the ASA's first action against a bank for so-called "greenwashing".

 

An HSBC spokesperson told the BBC that "The financial sector has a responsibility to communicate its role in the low carbon transition to raise public awareness and engage its customers."

 

"We will consider how best to do this as we deliver our ambitious net zero commitments," they added.

 

Greenwashing - branding something as eco-friendly, green or sustainable when this is not the case - misleads consumers into thinking they are helping the planet by choosing those goods or services.

 

A really simple guide to climate change

Big banks fund new oil despite net zero pledges

The adverts were seen at bus stops in London and Bristol last October, in the lead up to the highly-anticipated United Nations COP26 climate change summit.

 

The posters outlined HSBC's efforts to plant trees and help its customers achieve "net zero" emissions. Net zero means not adding to greenhouse gases already in the atmosphere by cutting and trying to balance out emissions.

 

One poster showed an image of waves crashing on a shore with text that said "Climate change doesn't do borders. Neither do rising sea levels. That's why HSBC is aiming to provide up to $1 trillion in financing and investment globally to help our clients transition to net zero".

 

The other advert was of tree growth rings and text which read "Climate changes doesn't do borders. So in the UK, we're helping to plant 2 million trees which will lock in 1.25 million tonnes of carbon over their lifetime".

 

The ASA upheld complaints that the ads "omitted significant information about HSBC's contribution to carbon dioxide and greenhouse gas emissions."

 

"Customers... would not expect that HSBC, in making unqualified claims about its environmentally beneficial work, would also be simultaneously involved in the financing of businesses which made significant contributions to carbon dioxide and other greenhouse gas emissions," the regulator added.

 

Climate change scrutiny

HSBC's efforts to address climate change have come under scrutiny in recent months.

 

In February, campaigners accused big banks, including HSBC, of pumping billions of dollars into new oil and gas production despite being part of a green banking group.

 

London-based ShareAction called on the banks to demand green plans from fossil fuel firms before funding them.

 

ShareAction said that 24 big banks, which joined the Net Zero Banking Alliance last year, had since provided $33bn (£29.1bn) for new oil and gas project.

 

At the time, a HSBC spokesman said the bank was "committed to working with our customers to achieve a transition towards a thriving low carbon economy".

 

Meanwhile, a senior HSBC executive drew controversy in May when he accused central bankers and other officials of exaggerating the risks of climate change.

 

Stuart Kirk, who was the global head of responsible investing at the bank's asset management division, said: "There's always some nut job telling me about the end of the world."

 

His role, which was based in London, involved considering the impact of investments on environmental, social and governance issues.

 

In July, Mr Kirk resigned from the bank and said that his comments had made his position "unsustainable".-BBC

 

 

 

HSBC climate change adverts banned by UK watchdog

The UK's advertising regulator has banned two HSBC advertisements for being "misleading" about the company's work to tackle climate change.

 

The Advertising Standards Authority (ASA) said the banking giant can no longer run the ads which promoted its plans to reduce harmful emissions.

 

The watchdog said that the posters "omitted material information" about HSBC's activities.

 

It marks the ASA's first action against a bank for so-called "greenwashing".

 

An HSBC spokesperson told the BBC that "The financial sector has a responsibility to communicate its role in the low carbon transition to raise public awareness and engage its customers."

 

"We will consider how best to do this as we deliver our ambitious net zero commitments," they added.

 

Greenwashing - branding something as eco-friendly, green or sustainable when this is not the case - misleads consumers into thinking they are helping the planet by choosing those goods or services.

 

A really simple guide to climate change

Big banks fund new oil despite net zero pledges

The adverts were seen at bus stops in London and Bristol last October, in the lead up to the highly-anticipated United Nations COP26 climate change summit.

 

The posters outlined HSBC's efforts to plant trees and help its customers achieve "net zero" emissions. Net zero means not adding to greenhouse gases already in the atmosphere by cutting and trying to balance out emissions.

 

One poster showed an image of waves crashing on a shore with text that said "Climate change doesn't do borders. Neither do rising sea levels. That's why HSBC is aiming to provide up to $1 trillion in financing and investment globally to help our clients transition to net zero".

 

The other advert was of tree growth rings and text which read "Climate changes doesn't do borders. So in the UK, we're helping to plant 2 million trees which will lock in 1.25 million tonnes of carbon over their lifetime".

 

The ASA upheld complaints that the ads "omitted significant information about HSBC's contribution to carbon dioxide and greenhouse gas emissions."

 

"Customers... would not expect that HSBC, in making unqualified claims about its environmentally beneficial work, would also be simultaneously involved in the financing of businesses which made significant contributions to carbon dioxide and other greenhouse gas emissions," the regulator added.

 

Climate change scrutiny

HSBC's efforts to address climate change have come under scrutiny in recent months.

 

In February, campaigners accused big banks, including HSBC, of pumping billions of dollars into new oil and gas production despite being part of a green banking group.

 

London-based ShareAction called on the banks to demand green plans from fossil fuel firms before funding them.

 

ShareAction said that 24 big banks, which joined the Net Zero Banking Alliance last year, had since provided $33bn (£29.1bn) for new oil and gas project.

 

At the time, a HSBC spokesman said the bank was "committed to working with our customers to achieve a transition towards a thriving low carbon economy".

 

Meanwhile, a senior HSBC executive drew controversy in May when he accused central bankers and other officials of exaggerating the risks of climate change.

 

Stuart Kirk, who was the global head of responsible investing at the bank's asset management division, said: "There's always some nut job telling me about the end of the world."

 

His role, which was based in London, involved considering the impact of investments on environmental, social and governance issues.

 

In July, Mr Kirk resigned from the bank and said that his comments had made his position "unsustainable".-BBC

 

 

 

Hong Kong shares hit lowest level since 2009

Shares in Hong Kong have slumped to the lowest level since the global financial crisis, after a major speech by the city's leader on Wednesday.

 

The benchmark Hang Seng index fell by more than 3% to its lowest level since May 2009, before regaining some ground.

 

Investors are also concerned about the threat of a global economic slowdown as central banks around the world raise interest rates to tackle rising prices.

 

One financial expert told the BBC that the "panic selling is ridiculous".

 

In his first policy address yesterday, Hong Kong's chief executive John Lee announced measures to boost security and plans to attract more overseas talent to the territory.

 

However, he did not elaborate on economic targets for the city, which has lost ground to rival Asian financial centres like Singapore.

 

Hong Kong's economy is currently in a technical recession, after seeing two three-month periods in a row of contraction this year.

 

Until recently the city had some of the world's toughest coronavirus rules as it followed China's zero Covid policies.

 

"The Hang Seng has hit a 13-year low and nothing is really helping the fragile sentiment," Dickie Wong, executive director of Kingston Securities said.

 

"There's also a sense that tax rebates are not enough to draw foreigners back to Hong Kong," he added.

 

Traders were also concerned about the Hong Kong government's "unprecedented silence on key economic indicators," Kelvin Tay, regional chief investment officer at UBS Global Wealth Management said.

 

However, Mr Tay added that investors were mostly concerned about "the economic outlook [of China] and a rise of Covid cases in the middle of the party congress in Beijing".

 

More than 2,000 delegates have gathered this week in Beijing to elect leaders and debate key policies at the Communist Party congress.

 

On Sunday, President Xi Jinping is expected to be confirmed for a historic third term as party chief.

 

Other stock markets in the Asia-Pacific region were also lower on Thursday, with benchmark share indexes in Japan, South Korea and Australia down more than 1%.

 

Meanwhile, the Japanese yen hit a fresh low of 149.96 to the US dollar, its lowest level since August 1990.

 

That triggered further speculation that Japanese authorities will attempt to prop up the currency for the second time in the space of just a few weeks.-BBC

 

 

 

 

South Africa: Eskom Extends Stage Three Load Shedding - South African News Briefs - October 20, 2022

Eskom has announced that the breakdown of four units - two at Kendal and one each at Kriel and at Arnot power stations has forced it to continue with Stage 3 load shedding, which was supposed to have been suspended for the day at 5am today. Meanwhile the utility has reported that internal investigations, with the assistance of the Hawks, led to the arrest of an employee at the Tutuka power station on October 17, 2022 for the removal of ten drums of hydraulic oil worth R800,000 from the on-site stores facility.

 

Democratic Alliance Calls for Ex Steinhoff CEO Markus Jooste to be Charged Criminally

 

The Democratic Alliance's Glynnis Breytenbach has said the attachment of Markus Jooste's assets by the South African Reserve Bank this week should put pressure on the National Prosecuting Authority (NPA) to charge him criminally. She said it was disappointing that the NPA has taken so long to move its investigation to the next level, Eye Witness News reports.

 

 

Murdered Hillary Gardee's Family to Sue Justice Minister For R18 Million

 

Hillary Gardee, the 28-year-old daughter of former Economic Freedom Fighters secretary-general Godrich Gardee, went missing on April 29, 2022 and was found dead on May 3, 2022 in Mbombela. Hillary's father contends that if one of the alleged killers, who was previously  arrested for rape while on parole, had been sent back to prison until 2023, she would still be alive, Eye Witness News reports. Gardee intends suing the Department of Justice for R18 million -  claiming R2 million in damages from the department for himself and eight family members.

 

 

 

Nigeria: How Pinnacle's $1bn Offshore Subsea Petroleum Terminal Will Address Govt's N5bn Daily Loss in Apapa

The federal government's revenue is about to receive a major boost as Nigeria's first offshore subsea bi-directional petroleum products intake and offtake terminal built by Pinnacle Oil and Gas Limited is set to significantly help in eliminating the N5 billion daily loss in revenues due to the gridlock in Apapa Port.

 

THISDAY understands that eliminating the N5 billion daily revenue loss would result from tackling the sub-optmisation and inefficiencies in the downstream sector, which had led to the multiple handlings in receiving products from mother vessels using daughter vessels with attendant cost implications.

 

 

The bi-directional offshore mooring facility which is made up of the Single-point Mooring (SPM) and the Conventional Buoy Mooring (CBM) facilities, with the capability to receive petroleum products from large vessels would be accompanied with the largest storage capacity of about one billion litres of product.

 

The ultra-modern purpose-built products intake, storage and offtake facility was conceptualised by Pinnacle to revolutionise the Nigerian downstream oil and gas industry by enabling the direct delivery of petroleum products from large vessels which would otherwise have been unable to berth anywhere on the Nigerian coastline.

 

However, owing to the socio-economic significance of the massive disruptive facility to the status quo in downstream sector, with its capability to revolutionalise the downstream oil and gas sector, President Muhammadu Buhari is being expected in Lagos this Saturday, to inaugurate the all-important infrastructure located at the Lekki Free Trade Zone.

 

 

Buhari has been championing efforts to increase investments in the nation's oil and gas industry through positive policies aimed at enhancing ease of doing business and surely would be delighted to unveil the Pinnacle Oil's terminal to the industry.

 

The Group Chief Executive Officer of Pinnacle Oil and Gas, Dr. Peter Mbah, who disclosed the president's expected arrival for the inauguration of the facility during a parley with journalists in Lagos, espoused on the importance of the facility to the nation.

 

He said with the infrastructure the company has put in place, it had been able to address the delays in evacuating products in mother vessels that come to Nigeria.

 

Mbah also explained that the extra costs companies pay and the reduction in revenues that should be made through Custom Duties and Excise Duties as well as revenues to the Nigerian Ports Authority (NPA) have also been addressed.

 

He noted that one of the major benefits of the facility was to help to decongest the Apapa and the roads by reducing the time in evacuating products in mother vessels and increasing turnaround time, thus significantly eliminating demurrage and waste due to inefficiencies in the value chain.

 

"I read one time in your reports that the country was losing about N5 billion daily because of that gridlock in Apapa. That's because we are unable to evacuate dry cargoes that are in the port.

 

"The implication of that is, if you cannot move the dry cargoes, you cannot bring in new vessels. So the earnings that government was supposed to be making from Customs duty and excise duty and the NPA fees and all that stalled.

 

"And then, the fees to pay for Nigeria-bound vessels went up almost 10 times because those vessels will reckon with the fact that when they get to our waters, they will have to wait for several days before they are allowed in. And they will pass that cost to Nigerians," Mbah said.

 

According to him, with the reduction of the gridlock in Apapa, when the company's facilities begin operations, there would be free movement of dry cargoes.

 

"Those vessels that would ordinarily wait for days if not months before they come into our port will be reduced, the number of waiting period will be reduced. It will impact on the freight costs.

 

"Also, the revenue of the government both the Customs and NPA will also be enhanced because you know the fast movement of those cargoes. So that's how it impacts the economy," he maintained.

 

-This Day.

 

 

 

Nigeria: Mobile Payments Surge As Cheque Transactions Slide From 10.8m to 4.5m in 5 Years - Report

The State of Enterprise (SOE) Report 2022 has revealed that financial transactions on mobile payment system grew by 5,455 per cent in Nigeria between 2017 and 2021, while cheque transactions went down from 10.8 million to 4.5 million transactions valued at N5.4 trillion and ₦3.2 trillion respectively within the same period.

 

According to the report, over 326,000 agents and many other unidentified retail outlets are providing agency banking, while the number of point-of-sale (POS) terminals deployed in 2021 was 915,519.

 

The SOE report also showed that Nigeria's financial institutions contributed ₦2.3 trillion to the country's GDP in 2021, which was 3.2 per cent of the nation's national output, and slightly higher than the N2.1 trillion it recorded in 2020.

 

 

The SOE report, which was launched recently by the EnterpriseNGR, said: "Nigeria's Financial and Professional Services (FPS) sector has survived challenging times in the past 40 years, particularly recent recessions and the global pandemic.

 

"Nevertheless, the sector continues to rebound and post record growth in numbers of firms, job opportunities, innovations and improved services, as information shared in the report demonstrates. The growth can in part be attributed to the adoption of new technologies by consumers and service providers, which has been supported by key stakeholders, including regulators.

 

"With further support from ecosystem players -- regulators, policymakers and operators -- Nigeria's Financial and Professional Services sector can reach significant milestones in years to come. Nigeria has the potential to lead the continent as Africa's premier financial centre. Right now, evidence of this can be seen among FinTechs, where innovators and investors are riding the crest of successive technology waves to create a multibillion-dollar industry in Africa."

 

 

Some of the highlights of the SOE Report 2022 that was unveiled by the Chief Executive Officer of the EnterpriseNGR, Ms. Obi Ibekwe, revealed that there were 21,917 registered members of the Institute of Chartered Accountants of Nigeria (ICAN) and over 120,000 registered legal practitioners in Nigeria as at June 2022, adding that there was an increasing appreciation of the need for insurance in the current business environment and accounted for 4.16 million Nigerians employed in the PSTS sector as at 2017, which was the latest available data.

 

EnterpriseNGR is the voice of Nigerian enterprises and a member-led advocacy group for the promotion of the growth and development of Nigeria's Financial and Professional Services sector that comprised of financial institutions, lawyers, accountants, among others.

 

The SOE report also stated that "the unprecedented growth of alternative channels offering consumers access to financial services has been made possible by the near universal adoption of mobile telephony and digital technology in Nigeria.

 

It said: "Since 2017, the volume and value of cheque transactions has fallen from 10.8 million transactions valued at ₦5.4 trillion to 4.5 million transactions estimated at ₦3.2 trillion in 2021.

 

"On the other hand, both the volume of electronic bill (e-bill) payments and mobile inter-scheme transactions grew exponentially by 32 per cent and 5,455 per cent, respectively, over the same period."

 

It said that banks and other financial institutions were the third largest contributor to company income tax (CIT) receipts, valued at ₦96.4 billion, representing 12.2 per cent of CIT receipts generated locally, based on 2020 data, which is the latest on the sector.

 

The report stated that the FPS sector was the leading sector in terms of capital importation into the country despite the decline recorded in recent times in capital inflows from $9.7 billion in 2020 to $6.7 billion in 2021.

 

It said: "The FPS sector led other sectors in capital importation, principally by banks, attracting 21.8 per cent of imported capital, while Nigeria led sub Saharan African countries in diaspora remittances, receiving $19.2 billion compared to South Africa's $0.9 billion; Kenya's $3.7 billion and Ghana's $4.5 billion.

 

-This Day.

 

 

 

Nigeria: AfDB, FCMB Sign $50m Agreement to Enhance Access to Finance for SMEs

The African Development Bank (AfDB) has signed a $50 million Line of Credit Agreement with First City Monument Bank (FCMB) to support access to finance for Small and Medium-sized Enterprises (SMEs), as well as Women-empowered Businesses (WEBs).

 

FCMB will use the proceeds of the Line of Credit to finance SMEs and WEBs in Nigeria's agribusiness, manufacturing, healthcare and renewable energy sectors.

 

The funds are intended to mitigate the effects of the challenges created by COVID-19 pandemic on the business environment in which the beneficiary enterprises operate.

 

 

Also, the AfDB will partner FCMB through a technical assistance grant of $200,000 sourced from the Women Entrepreneurship Finance Initiative (WeFi) under its Affirmative Finance Action for Women in Africa (AFAWA) initiative. FCMB will deploy the grant resources to provide non-financial services, including training and strengthening of its monitoring and reporting functions for WEBs.

 

Other outcomes expected from the operation are improved access to finance for at least 50 enterprises, out of which 29 are envisaged to be in agribusiness and manufacturing, nine in renewable energy and 13 in the healthcare industry. A minimum of 14 female entrepreneurs will be supported to access long-term funding and at least 1,000 jobs created or sustained.

 

The AfDB's Director General, Nigeria Country Department, Lamin Barrow, in a statement said: "The AfDB is pleased to partner with FCMB, a financial institution that has continuously demonstrated commitment to supporting and financing small and medium-sised enterprises and women entrepreneurs.

 

"This collaboration will further expand FCMB's financial support to this underserved group and contribute to the growth of the Nigerian economy."

 

Barrow said the focus and objectives of the Bank's collaboration with FCMB, were in line with the African Development Bank's strategic priorities of promoting gender inclusivity, private sector development, industrialisation, food security, and job creation in the bank's regional member countries as encapsulated in the bank's High-5 Strategic Priorities to 'Industrialise Africa', and 'Feed Africa'.

 

The project aligns with the objectives of the bank's AFAWA initiative, which aims to improve gender inclusivity by improving access to finance for women entrepreneurs. The AfDB is an implementing partner of the Women Entrepreneurs Finance Initiative - a partnership housed in the World Bank Group that aims to unlock financing for women-led businesses in developing countries.

 

The Managing Director, FCMB Limited, Yemisi Edun, in a statement said, "We are happy to collaborate with the African Development Bank to create expanded opportunities and accelerate post-COVID-19 pandemic business recovery for small, medium-sized, and women-owned businesses in Nigeria through funding and technical support.

 

"We are intentional about collaborations that upskill entrepreneurs, drive industrialisation, and create economic value, wealth and employment for Nigerians."

 

-This Day.

 

 

Nigerian Authorities Hopeful After Massive Oil Theft Busts

Abuja, Nigeria — The Nigerian National Petroleum Corporation says that weeks of an intense crackdown on oil thieves have significantly reduced the scale of oil theft in the oil-rich Niger Delta and that the country will soon boost overall oil production.

 

However, critics say the deeper problem of corruption has not been solved and question whether those behind the theft will be prosecuted.

 

NNPC Director Mele Kyari, speaking Tuesday during an energy and labor summit in Abuja, said that because of recent raids and collaboration with local security agencies to combat theft, he was optimistic that Nigeria would have access to more crude oil and revenue in the coming weeks.

 

 

Last week, joint operations by Nigerian security operatives and agents working for a former oil region militant, Government Ekpemupolo, also known as Tompolo, cracked down on massive oil looting in the Niger Delta.

 

The government said the operations shut down 58 illegal taps on oil facilities, including a line connected to Nigeria's Trans Forcados Pipeline that had siphoned oil for nearly a decade.

 

Gbenga Komolafe, head of the Nigerian Upstream Petroleum Regulatory Commission, attended the energy summit. He told VOA via phone that "we're working in collaboration with the security forces and the NNPC, and the nation may witness in [the] days ahead the restreaming of one of the major arteries for crude oil transportation - that is, the Forcados line."

 

Contract for Tompolo

 

 

Nigerian authorities awarded a pipeline surveillance contract worth millions of dollars to Tompolo in August in a desperate bid to stop oil theft that was causing a loss of at least half a million barrels per day.

 

Authorities said the move was paying off, but some critics note that authorities have not publicly identified those behind the rampant theft.

 

Tompolo and his security agents say that oil companies, the military and local residents colluded to steal oil for their own profit.

 

Last week, authorities burned a vessel full of stolen oil without conducting an investigation -- a move that generated fierce criticism but was defended by Nigeria's defense chief.

 

Abuja-based energy expert Toyin Akinosho said that authorities were playing "cover-up" and that it was too early to be making boasts about increased oil output.

 

"I'm always having a bit of a challenge when it's NNPC talking, because it's a poorly run organization and its ways are not always sustainable," Akinosho said. "I would rather that there's a systemic way to these things than that we have -- these optics. We always do those kinds of optics things. It doesn't solve any problem."

 

But Komolafe said naming oil thieves right now might jeopardize investigations.

 

"It's a security issue," he said, "and security persons are doing their best [in] that regard. When investigations are being conducted, they are not done in the media. The government is fully determined to end oil theft in Nigeria."

 

Nigeria was Africa's biggest oil producer until recently. In September, Nigeria dropped to fourth place on the continent. Authorities said oil theft was to blame.

 

Nigerian President Muhammadu Buhari said thefts were putting the country's economy in a precarious situation.

 

-VOA.

 

 

 

 

South Africa: Finally, Ex Steinhoff CEO Markus Jooste's Assets Seized In Reserve Bank Raid

Cape Town — In what is considered the biggest corruption case in the history of South Africa, furniture giant Steinhoff is alleged to have misrepresented its balance sheets to shareholders for a number of years - a discovery that led to the hasty exit of its CEO Markus Jooste on December 5, 2017. The scandal saw a 90% drop in the firm's share price.

 

After years of legal wrangling, the South African Reserve Bank on October 18, 2022 finally swooped on assets belonging to Jooste, Eye Witness News  reports.

 

Among the attached assets are the Lanzarac Wine Farm in Stellenbosch - swapped by its former owner, billionaire Christo Wiese, for shares in Steinhoff that proved to next to worthless, and a huge residence in the seaside town of Hermanus. Luxury vehicles, artwork and jewelry has also been seized.

 

Jooste was also slapped with a hefty fine for  insider trading  when he warned a friend a day before the Steinhoff saga was exposed, to sell his shares. The South African government convened several inquiries into Steinhoff. Many pension fund managers had invested in the firm, losing their members' pensions.

 

In 2021, German prosecutors completed their criminal investigation into balance sheet manipulation at Steinhoff, which had a primary listing on the Frankfurt Stock Exchange. The company was delisted from the exchange on April 29, 2022.

 

This is a developing story

 

 

 

 

 

 

 

 

 

 


 


 


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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