Major International Business Headlines Brief::: 10 August 2023

Thu Aug 10 06:16:46 CAT 2023

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Major International Business Headlines Brief::: 10 August 2023 

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ü  Uganda: World Bank Halts Public Funding to Uganda Over Anti-Homosexuality Law

ü  Uganda: Hima Cement Skills-up 3,000 Masons in Countrywide Builders' Workshops

ü  Africa: Russian Mineral Fertiliser Producers to Double Shipments to Africa

ü  Botswana: Govt Seeks Pharmacists From Abroad After Nurses Halt Dispensing Medications

ü  Kenya: Cabinet Okays Commercialization of 5 State-Owned Sugar Firms

ü  Mozambique Needs 800,000 Doses of Vaccine Against Foot-and-Mouth Disease

ü  South Africa: Winde Calls for Immediate End to Taxi Strike

ü  Gambia: Witness Harps On Importance of Budget

ü  US to bar and screen some tech investments in China

ü  Disney to expand ads on streaming as business flags

ü  Canada accuses China of targeting lawmaker in misinformation campaign

ü  Deflation: Why falling prices in China raise concerns

ü  Italy waters down windfall tax on banks

 <https://www.cloverleaf.co.zw/> Uganda: World Bank Halts Public Funding to Uganda Over Anti-Homosexuality Law

The World Bank Group has said it will pause public financing to Uganda over the country's adoption of the Anti-Homosexuality law.

In May, President Yoweri Museveni signed into law the Anti-Homosexually Bill, criminalising homosexual activities in the country.

In a statement issued on Tuesday, the World Bank said Uganda's Anti-Homosexuality Act 'fundamentally" contradicts the group's values, adding that no new public financing to Uganda will be presented to its board of executive directors until the efficacy of the additional measures has been tested.

"We believe our vision to eradicate poverty on a livable planet can only succeed if it includes everyone irrespective of race, gender, or sexuality. This law undermines those efforts. Inclusion and non-discrimination sit at the heart of our work around the world," the lender said in its statement.

Immediately after the law was enacted in May, the World Bank had deployed a team to Uganda to review its portfolio in the context of the new legislation.

Upon the review, World Bank says it was determined that additional measures are necessary to ensure projects are implemented in alignment with the lender's environmental and social standards.

The US-based lender says its decision is aimed at protecting the sexual and gender minority groups against a law that has been criticised by some human rights groups and the West.

"Our goal is to protect sexual and gender minorities from discrimination and exclusion in the projects we finance. These measures are currently under discussion with the authorities." World Bank says.

The lender also says it will increase third-party monitoring and grievance redress mechanisms to allow take "corrective action" as necessary.

It should be noted that the World Bank has been under pressure from the U.S Congress to halt new loans for Uganda until the country drops the anti-homosexuality legislation.

Previously, US President Joe Biden warned that Uganda risked facing economic sanctions over the anti-gay law.

Uganda: Hima Cement Skills-up 3,000 Masons in Countrywide Builders' Workshops

Hima Cement Limited has concluded a series of builders' workshops conducted across the country by industry experts over the last three months in which 3000 masons got training on professional building practices.

"Masonry is a key skill in the construction industry and these Builders Workshops are part of our contribution in laying a strong foundation of empowerment and capacity building for the industry," said Philemon Mubiru, the Hima Cement head of innovation and marketing while speaking to masons at the Hoima Youth Centre.

Many masons and foremen have built their skills mostly through informal learning (apprenticeship) and

this program is strategically designed to bridge existing skills gaps.

According to officials from Hima Cement, the goal of the workshop was to build on the skills the masons already have and to have a long-term positive and sustainable impact on the industry at large.

The workshops provided the participants with an opportunity to interact with building experts and peers, facilitating a deeper comprehension of optimal construction techniques, troubleshooting common construction challenges, as well as insights into business acumen, safety protocols, and customer relations.

The ultimate aim was to facilitate professional growth and at the end of the training ,the masons received various building tools and personal protective equipment.

"We have dispensed a broad curriculum of building knowledge during the workshops including laying foundations, roofing, interpretation of plans and drawings, walling, plastering, how to avoid construction defects while building and tips on using building materials economically. We have also covered aspects of personal and team safety while at construction sites," Mubiru added.

The builders workshops which started in May have covered the entire country with trainings held in Kampala, Entebbe, Wakiso, Kayunga, Mpigi, Masaka, Luweero, Mityana, Mubende, Jinja, Kamuli, Lira, Gulu, Arua, Serere, Soroti, Mbale, Tororo, Mbarara, Kabale, Bushenyi, Fort Portal, Masindi and Hoima.

"This widespread reach underlines the commitment of Hima Cement to foster expertise and elevate construction practices throughout Uganda," officials said.

Africa: Russian Mineral Fertiliser Producers to Double Shipments to Africa

Russian producers of mineral fertilisers say they are ready to double their shipments to African countries in the next five years.

This was announced by Andrey Guryev, President of the Russian Fertiliser Producers Association (RFPA), on the sidelines of the just-ended second Russia-Africa Summit held in Saint Petersburg, Russia.

He said increasing volumes and expanding the geographical scope of shipments to Africa was top on the agenda of the producers.

"Russian fertilisers are currently used in 25 African countries, and we are willing to discuss terms of mutually beneficial cooperation with companies from the remaining 30 countries. We aim to once again double shipments to the African continent within the next five years," he said.

Russia, he said, was keen on cooperating with African countries in Scientific and technical areas, exchanging experiences in the extraction and processing of mineral resources with African fertiliser producers to implement modern and efficient technologies in their production processes.

"Collaborating with educational institutions in Africa to raise awareness among farmers and consumers of agricultural produce about the risks associated with heavy metal content, particularly cadmium, in fertilisers," he said.

Regarding the food security situation in the African continent, he said 60 per cent of arable lands on the continent was not being utilised for agriculture.

According to UN statistics, 40 per cent of the lands in Africa suffer from degradation due to the presence of cadmium and heavy metal impurities from fertilisers.

Approximately 278 million people (20% of the population) suffer from chronic hunger.

If the current trend of food imports continues, which currently amounts to a massive $55 billion, it is expected to double by 2030.

Regarding the performance and plans of Russian fertiliser producers in Africa, he said, Russia holds about 10 per cent of the African market for mineral fertilisers.

"Over the past five years, Russia has more than doubled its shipments of mineral fertilisers to African countries, reaching 1.6 million tonnes in 2022. Russian fertilisers are used in 25 countries across the continent," he said.

The main products include NPK, ammonium phosphate, ammonium nitrate, and urea. The leading suppliers of Russian fertilisers to the African continent are PhosAgro (33%) and EuroChem (25%).

The primary markets for Russian fertilisers are South Africa (ammonium phosphate), Morocco (ammonium nitrate, urea), Senegal (nitrogen fertilisers), Tanzania (DAP, nitrogen), and Côte d'Ivoire (nitrogen, NPK).

Russian fertiliser producers continually expand their product range for African countries.

They have developed new fertiliser brands with minimal acidifying effects, which are particularly relevant due to the high acidity levels of local soils.

They have also created brands with high granule solubility essential in dry climate conditions. Additionally, these fertilisers contain added calcium, magnesium, sulphur, zinc, and boron.

-Ghanaian Times.

Botswana: Govt Seeks Pharmacists From Abroad After Nurses Halt Dispensing Medications

Gaborone — Botswana is aiming to recruit at least 1,000 pharmacists, some from abroad, after nurses said they would no longer dispense medications.

Nurses stopped filling prescriptions to patients last month, with the Botswana Nurse Union saying that doing so was outside their scope of work.

The situation has led to congestion at the country's pharmacies and left some patients unable to get their medications at all.

Now the government is looking to bring in pharmacists from abroad to fill the void and avert a health crisis.

Speaking in parliament Monday, Botswana's assistant health minister, Sethumo Lelatisitswe, said that despite recruiting about 100 pharmacists over the last month, the shortage is still severe.

"We only have a few pharmacists and pharmacy technicians in the market," Lelatisitswe said. "In the coming weeks, we would have exhausted the Botswana market. However, we would still not have been able to replace all nurses and midwives that have been dispensing medications from as long ago as the birth of our health system. Our local tertiary institutions do not produce enough pharmacists and pharmacy technicians who can be engaged to serve our people."

The Botswana Nurse Union vice president responsible for labor, Oreeditse Kelebakgosi, said that it was unlawful for nurses to be dispensing medication and that it is only proper for the government to recruit pharmacists.

Kelebakgosi applauded the government's move to recruit from outside Botswana, saying the effort would bring relief to the nurses who have been dispensing medication outside their scope of work.

But assistant minister Lelatisitswe said it will not be an easy task to recruit the health-care professionals.

"We need close to a thousand pharmacists and pharmacy technicians to have all our clinics and health facilities adequately covered," he said. "Given the shortage of these professionals in the market, including regionally ... it may take up to five years to have these numbers."

Lelatisitswe acknowledged that the nurses' decision has led to a crisis.

HIV activist Bonosi Segadimo says the shortage of pharmacists will negatively impact the distribution of ARV drugs. Botswana has among the world's highest HIV prevalence with nearly 21% of the adult population living with the virus.

"This issue of nurses stopping the dispensing of drugs is a very bad idea," said Segadimo. "Most clients have to take public transport to go and get their medications from clinics, where there are no pharmacists."

Botswana's problem is not an isolated one in Southern Africa, where health-care delivery has been disrupted by professionals leaving for better pay in wealthier countries, particularly in the United Kingdom.VOA.

Kenya: Cabinet Okays Commercialization of 5 State-Owned Sugar Firms

Nairobi — Cabinet has approved Comprehensive Overhaul of State-owned sugar companies paving way for private sector participation and modernization.

The government dropped plans to privatize State-owned sugar firms in the country following sustained opposition from various stakeholders in the sugar-belt region.

The ailing State millers that had been earmarked for privatization include Nzoia Sugar Company, Chemelil Sugar Company, Miwani Sugar Company (In Receivership), Muhoroni Sugar Company (In Receivership), South Nyanza Sugar Company, and Mumias Sugar Company (In Receivership).

"If the proposal by Cabinet receives Parliamentary approval, the State-owned entities would be operated under a lease and operate framework," the Cabinet dispatch stated.

In April, President William Ruto said that the five sugar factories, together with Mumias Sugar Company, have debts of up to Sh60 billion, which he said would be written off by his government.

The five companies are in urgent need of modernization to survive competition from the entry of other sugar producers and an impending end to sugar import limits from the Common Market for Eastern and Southern Africa (COMESA) trade bloc.

Cabinet has sanctioned the extension of the framework for duty-free importation of milled sugar to bridge the supply deficit.

The move at reducing at the high retail price of sugar fueled by an acute cane shortage in the country.

-Capital FM.

Mozambique Needs 800,000 Doses of Vaccine Against Foot-and-Mouth Disease

Maputo — Mozambique's veterinary authorities are mobilising funds for the purchase of a further 800,000 doses of vaccine against foot-and-mouth disease, aiming to complete the immunisation of cattle in the country.

The doses are destined for the southern provinces of Maputo and Gaza, central Manica and Tete and northern Niassa, the last two of which are facing active outbreaks of the disease.

Zacarias Massicame, head of the Department of Disease Prevention and Control at the Ministry of Agriculture, cited in Tuesday's issue of the Maputo daily "Notícias', said the country needs over one million doses to ensure the protection of livestock.

He explained that the import of about 300,000 vaccines is underway for areas with active outbreaks and a high risk of spreading foot-and-mouth disease.

This will reinforce the doses recently allocated to Manica, Tete and Niassa and which are already under administration.

"The late and limited availability of vaccines and the limited capacity to move technicians to the field are affecting the immunisation calendar. In recent years, the sector has not been able to meet the minimum recommended vaccination requirements to achieve herd health defence', Massicame said, adding that the sector is mapping the fever-free zones to allow the Foot and Mouth Disease Control Committee to determine, in the coming days, the easing of restrictive measures, enabling the resumption of the movement of cattle, sheep, goats and pigs.

Foot-and-mouth disease is regarded as one of the most important cross-border diseases of hoofed animals in the world because of its rapid transmission and spread capacity, with negative economic impacts due to restrictions on the movement of animals and their derivatives from one area to another.

South Africa: Winde Calls for Immediate End to Taxi Strike

Western Cape Premier Alan Winde says the safety of residents and road users is of paramount importance as the minibus taxi strike continues to wreak havoc in the province.

Winde has since called for an immediate end to the strike.

The Premier was speaking on the outcomes of a special Western Cape Cabinet meeting on Monday, 7 August 2023, to discuss the ongoing minibus taxi strike.

According to reports, four more Golden Arrow buses were torched yesterday, which brings the number to 10 since the taxi strike on Thursday, 3 August 2023.

This has forced the company to terminate its bus services in Khayelitsha, Nyanga, Philippi East, Langa, and Mfuleni, while at least two people have since lost their lives.

The Western Cape's South African National Taxi Council (Santaco), is allegedly leading the stay-away and there has been no resolution despite numerous negotiations.

"I am angry that as a result of the strike, residents have been unable to get home to their families, work school, shops, clinics and other critical sites.

"Many government services, including health and social development, are having to close facilities and are unable to provide desperately needed services to our communities. Our schooling system is also being affected. This is not acceptable," the Premier stated.

SAnews reported on Monday 287 420 learners have not been able to attend school across the province, while more than 9 000 teachers and staff were also prevented from going to work.

Meanwhile, he said the welcomes Santaco's condemnation of the levels of violence associated with the strike.

"However, we remain deeply concerned by the violence, loss of life, and destruction of property that has been associated with the strike. Santaco's leadership must ensure that the violence associated with the strike ends immediately," Winde said.

The Premier said he supports the interdict granted by the Western Cape High Court to Golden Arrow Bus Services (GABS) against Santaco and its affiliates.

On the other hand, the Western Cape government announced that it was also pursuing legal action, along with the City of Cape Town, to interdict the violence.

"The ongoing violence is making it very difficult for negotiations to proceed. We are a government that stands for the rule of law. A withdrawal of services is an important Constitutional right, but violence, intimidation, and destruction of property are not. This is non-negotiable."

Winde believes that all stakeholders should go back to the negotiations.

"But this has to be in an environment of calm. We must also not allow this issue to be politicised as this will only further complicate matters."

Meanwhile, he said all law enforcement agencies have been mobilised since the strike and that a maximum number of personnel and resources have been deployed to respond to acts of violence and protect services that can be offered amid the industrial action.

-SAnews.gov.za.

Gambia: Witness Harps On Importance of Budget

Ebrima Sanyang, director of Procurement Policy and Operations at the Gambia Public Procurement Authority (GPPA), yesterday testified before the Local Government Commission of Inquiry on the importance of budget for public institutions.

The Commission is currently discussing transactions of area councils.

"What is the significance of the procuring organisation's budget vis-à-vis the procurement that they are going to conduct?" the witness was asked by Lead Counsel Yakarr Coxx

Mr Sanyang said in response that the budget will show that the procurement in question is being budgeted for and the funding is available for it.

"What happens where the procurement is outside this budget? Is it possible to commence procurement proceedings?

Mr Sanyang said: "A budget is an estimate based on market research to determine an estimated cost. During the implementation, what prevails on the ground may differ from what is being budgeted for. In that case, the procuring organisation would update the budget based on the existing, market price.

Witness Sanyang added: "According to the law, it should be plus or minus 15%. If the budget is more than 15%, then it means that it is far above the budget, and probably institutions should not go ahead with it.

He clarified that this is when bidding is done and the offers by suppliers or contractors are more or lower than 15%. "In cases like that, it is regarded as being far above the budget or below the budget. When it is below the budget, the conclusion is that the contractor may underperform," he said.

"So what happens where the bid is more than 15% or below 15%? If all the bids are like that, if all those offers are like that, would they have to adjust the budget and retender?" the lead counsel asked again.

The witness answered: "Let me begin with the under-budget. Now the institution can engage the contractors or suppliers to find out why it is being grossly under-budgeted, and there are possibilities. For example, there is a procurement at a certain place like Basse, and bidding is done at a time when there is a contractor who already has all material mobilised to Basse and is on the ground. But that is just an example.

"So in this case, that supplier may not need any resource mobilisation again because the materials are already there. So in cases like that, that particular contractor or supplier may bid far below what is expected. So in cases like that, that supplier may be considered."

However, he said, when such occurs in all the bids, then the procuring institution may contact all of the bidders. He stated that when the bidder's estimated cost is far more than the budget, what should be considered is whether the procuring institution could afford it and where are the added expenses coming from.

Meanwhile, he also reminded the Commission that the budget is just an estimate, and it could be that the procuring organisation did not do adequate market research. "We have seen instances where all the bidders speak the same language, where their bids are far more than the budget. Then in such instances, he said the procuring institution may revisit its budget.

-The Point.

US to bar and screen some tech investments in China

The US plans to require American companies to disclose investments they make in China in high-tech sectors such as artificial intelligence, and to prohibit certain investments outright.

The much anticipated move gives the government new power to screen foreign dealings by private companies.

The US said the measure would be narrowly targeted, but it is poised to further chill economic relations between the two superpowers.

China said it was "very disappointed".

The US "has continuously escalated suppression and restrictions on China," said Liu Pengyu, a spokesperson for the Chinese embassy in Washington.

He added that White House claims that the US was not seeking to hurt China's economy or separate the two countries did not match its actions. "We urge the US side to honour its words."

The order by US President Biden formally kicks off the push to craft rules to bar American businesses from investing in firms from "countries of concern" that are active in quantum computing, advanced semiconductors and certain areas of artificial intelligence.

The government will also require US firms to notify the Treasury Department of investments in firms working on a wider range of artificial intelligence and semiconductor technology.

The rules are not expected to apply to so-called portfolio investments, in which firms invest passively in companies via the stock market, but are focused on active investments made by private equity, venture capital and other firms.

They will now enter a public comment period, which is expected to further clarify what kinds of investments are off-limits. The rules are not expected to go into effect for months.

In a briefing with reporters, senior administration officials said the measure was a "national security action, not an economic one". They said the US remained committed to open investment.

Sarah Bauerle Danzman, a senior fellow at the Atlantic Council, said the approach outlined on Wednesday was narrower than some of the other proposals under debate, but still represented an "unprecedented" expansion of government oversight.

"It is definitely a big deal and it certainly represents quite a break from past policy," she said.

Controls on outbound investment are rare among advanced economies, currently present only in Japan and Korea, according to a 2022 report by the US-China Investment project.

In the US, prior restrictions on China trade have relied on limiting sales of sensitive technology by US firms and screening Chinese investments in American companies. The Trump administration has also barred investments in firms tied to China's military.

The latest measure has widespread support in Washington, where it is seen as fixing a regulatory gap concerning financial flows that risks allowing American money and know-how to to flow into China and assist its military ambitions.

The US has been trying to build international support for the investment curbs with some signs of success.

Prime Minister Rishi Sunak in May said the government would consider curbs on outbound investment; the European Commission put forward a proposal focused on investments in sensitive technologies earlier this summer.

It is not clear how significantly the order would affect flows of investment.

China was the number two destination for foreign investment in 2022, behind the US, but many reports suggest money flowing into the country from the US and elsewhere has dropped sharply as geopolitical relations sour.

In the UK, a recent survey by the Institute of Directors found that one in five UK importers had already switched investments away from the country due to geopolitical tensions.

The value of US foreign direct investment transactions in China dropped to roughly $8bn last year, the lowest level in nearly two decades, according to the Rhodium Group.

China has responded to the curbs with its own rules, including limits on exports of some critical minerals used to make computer chips.

Treasury Secretary Janet Yellen, who visited China in July to try to ease tensions, said last month she did not think the coming curbs would have a fundamental impact on the investment climate in the country.

But Ms Bauerle Danzman, a professor of international studies at Indiana University, said despite US efforts to target its restrictions, the ill-defined nature of some of the technologies in question, many of which also have consumer uses, means the clampdown risks becoming too broad.

She warned that could ultimately hurt the US, by raising costs for businesses and isolating the country from technological advances.

"Whether this is good or bad is going to depend on implementation," she said. "The US government has to be very careful not to allow this to expand and expand and it needs to find ways to have some amount of exchange of information in ways that don't challenge national security so that we're not cutting ourselves off from opportunities for new scientific discoveries."-bbc

Disney to expand ads on streaming as business flags

Disney is raising prices and expanding adverts in its streaming service, as it struggles to revive its business.

The entertainment giant plans to raise prices for its ad-free streaming service in the US this fall and will launch Disney+ with advertisements in Canada, the UK and Europe in November.

The move comes as the firm faces a range of troubles, including lacklustre film performance and a sharp drop in television advertising sales.

Even its parks show signs of strain.

Revenue in the division rose 13%, lifted by a rebound in China.

But the company said attendance had slipped in the three months ending July 1 at its amusement park in Florida, where the company has been feuding with Governor Ron DeSantis, who has spearheaded attacks in the US on the firm as too "woke".

Overall revenue at the firm grew just 4% year-on-year in the three months ended 1 July, as it posted a loss of $460m (£361m).

Boss Bob Iger said he knew the firm had "work to do".

"I'm incredibly confident in Disney's long-term trajectory," he added on Wednesday, as the firm provided investors with a quarterly update.

Mr Iger acknowledged that the performance of some recent films - which included a new live action Little Mermaid and Guardians of the Galaxy Vol 3 - had been "disappointing".

But executives downplayed the attendance decline in Florida.

They said business remained strong compared with pre-pandemic levels, and the drop reflected wider trends, including a return to normal after the pandemic and a fall in international travel.

Disney's losses - which included a $2.7bn restructuring charge - were not as severe as analysts had expected, which Mr Iger said reflected the firm's focus on cutting costs and improving efficiency.

The company spotlighted progress in its streaming business, where losses were cut in half from a year ago to about $500m, and said the firm remained on track to meet its goal of shaving off $5.5bn in costs as promised earlier this year.

Subscriptions to its core Disney+ service grew 1% to 105.7 million, as growth internationally offset a 1% decline in the US.

Its Disney Hotstar service in India, which has been struggling since losing the right to show cricket matches, saw subscriptions plunge 24%, while other offerings, including ESPN and Hulu saw little change.

As well as pushing the streaming service with adverts, Mr Iger said the firm planned to crack down on account sharing.

"Disney's mixed results will do little to calm investors anxious for clarity on the company's strategy for its streaming services and TV networks," said Insider Intelligence analyst Paul Verna.

"While it's encouraging that Disney narrowed its streaming losses in the past quarter, it did so mostly through massive reductions in workforce and content spending, rather than through organic growth."

Despite the weakness in the US, Paolo Pescatore, analyst at PP Foresight, said he did not think the mixed results reflected a major toll from Disney becoming a flashpoint in America's culture wars, describing the fight as an "unwanted distraction".

"Overall, the weakness stems from the inherent challenges of a traditional media conglomerate aggressively moving into streaming and taking the foot off the gas pedal," he said. "There's a lot on Iger's mind at the moment. It will take time."-bbc

Canada accuses China of targeting lawmaker in misinformation campaign

Canada said it has detected a misinformation campaign targeting a member of its parliament on the Chinese instant-messaging app WeChat.

Conservative politician Michael Chong was allegedly the target of posts sharing "misleading narratives" about his background, his family's heritage and his political views.

Global Affairs Canada (GAC) said it is "highly probable" that China was behind the WeChat campaign against him.

China has denied the accusations.

Canadian officials are seldom forthcoming about information related to foreign interference and the allegations were revealed in a rare statement by GAC on Wednesday.

The department cautioned it is difficult to definitively trace the attacks back to China because of the nature of the campaign.

"Unequivocal proof that China ordered and directed the operation is not possible to determine due to the covert nature of how social media networks are leveraged in this type of information campaign," it said.

What to know about the Canada-China meddling row

This latest is part of a wider series of claims that have come out in recent months from Canadian intelligence agencies and officials that Beijing has been interfering in Canada's elections.

GAC said it uncovered the attacks against Mr Chong while monitoring social media and other parts of the internet for foreign interference ahead of a 19 June by-election.

They were coming from news accounts on WeChat that amplified falsehoods about Mr Chong.

They said the attacks appeared coordinated and were abnormal in volume.

One-third of the accounts amplifying the attacks were known state-media outlets or accounts likely linked to the Chinese state, GAC said. The rest were anonymous and had not made any previous posts about Canadian politics.

In a statement to the BBC, the Chinese embassy in Canada called the accusations "purely groundless".

"We never interfere in Canada's internal affairs, and have no interests whatsoever in doing so," the statement said.

GAC said it will be speaking to China's representatives in Canada about the posts, adding that "Canada will never accept any form of interference in our democracy or internal affairs".

Canada has accused China in the past of targeting both Mr Chong and his relatives in Hong Kong after he spoke about concerns of human rights abuses in China.

This led Canada to expel Chinese diplomat Zhao Wei in May. China retaliated and ordered the removal of Jennifer Lynn Lalonde, Canada's diplomat in its Shanghai Consulate.

In a media statement shared on Wednesday, Mr Chong called the campaign against him "another serious example of the communist government in Beijing attempting to interfere in our democracy by targeting elected officials".

He also renewed his call for a public inquiry into the allegations of foreign interference by China in Canada.

Prime Minister Justin Trudeau's government has faced pressure to launch an inquiry into the issue, but it is unclear yet if one will take place.-bbc

Deflation: Why falling prices in China raise concerns

China's economy has slipped into deflation as consumer prices declined in July for the first time in more than two years.

The official consumer price index, a measure of inflation, fell by 0.3% last month from a year earlier.

Analysts said this increases pressure on the government to revive demand in the world's second largest economy.

This follows weak import and export data, which raised questions about the pace of China's post-pandemic recovery.

The country is also tackling ballooning local government debt and challenges in the housing market. Youth unemployment, which is at a record high, is also being closely watched as a record 11.58 million university graduates are expected to enter the Chinese job market this year.

Falling prices make it harder for China to lower its debt - and all the challenges which stem from that, such as a slower rate of growth, analysts said.

"There is no secret sauce that could be applied to lift inflation," says Daniel Murray from investment firm EFG Asset Management. He suggests a "simple mix of more government spending and lower taxes alongside easier monetary policy".

When did prices start falling?

Most developed countries saw a boom in consumer spending after pandemic restrictions ended. People who had saved money were suddenly able and willing to spend, while businesses struggled to keep up with the demand.

The huge increase in demand for goods that were limited in supply - coupled with rising energy costs after Russia's invasion of Ukraine - inflated prices.

But this is not what happened in China, where prices did not soar as the economy emerged from the world's tightest coronavirus rules. Consumer prices last fell in February 2021.

In fact, they have been at the cusp of deflation for months, flatlining earlier this year due to weak demand. The prices charged by China's manufacturers - known as factory gate prices - have also been falling.

"It is worrisome as far as it shows that demand in China is poor while the rest of the world is awakening, especially the West," Alicia Garcia-Herrero, an adjunct professor at the Hong Kong University of Science and Technology, said.

"Deflation will not help China. Debt will become more heavy. All of this is not good news," she added.

Why is deflation a problem?

China produces a large proportion of the goods sold around the world.

A potential positive impact of an extended period of deflation in the country may be that it helps to curb rising prices in other parts of the world, including the UK.

However, if cut-price Chinese goods flood global markets it could have a negative impact on manufacturers in other countries. That could hit investment by businesses and squeeze employment.

A period of falling prices in China could also hit company profits and consumer spending. This may then lead to higher unemployment.

It could result in a fall in demand from the country - the world's largest marketplace - for energy, raw materials and food, which would hit global exports.

What does this mean for China's economy?

China's economy is already facing other hurdles. For one, it is recovering from the impact of the pandemic at a rate that is slower than expected.

On Tuesday, official figures showed that China's exports fell by 14.5% in July compared with a year earlier, while imports dropped 12.4%. The grim trade data reinforces concerns that the country's economic growth could slow further this year.

China is also dealing with an ongoing property market crisis after the near-collapse of its biggest real estate developer Evergrande.

The Chinese government has been sending the message that everything is under control, but has so far avoided any major measures to encourage economic growth.

Building confidence among investors and consumers will be key to China's recovery, Eswar Prasad, a professor of trade policy and economics at Cornell University, said.

"The real issue is whether the government can get confidence back in the private sector, so households will go out and spend rather than save, and businesses will start investing, which it hasn't accomplished so far," Professor Prasad said.

"I think we're going to have to see some significant stimulus measures (including) tax cuts."-bbc

Italy waters down windfall tax on banks

Italy has watered down plans to hit its banks with a windfall tax, leading to a rebound in the share prices of the country's lenders.

On Monday night, the government passed a one-off 40% tax on the profits banks earn from higher interest rates, in a shock move that saw shares plummet.

It said proceeds would be used to help mortgage holders and to cut taxes.

But late on Tuesday evening, the finance ministry said the tax would be capped at 0.1% of assets.

The tax will apply to the income that comes from the gap between the banks' lending and deposit rates.

Shares in Italian lenders such as Intesa Sanpaolo, Banco BPM and UniCredit, which tumbled on Tuesday, recovered some ground on Wednesday after the initial plan was diluted.

A windfall tax is a levy imposed by a government on companies that have benefited from external conditions or events, such as a rise in the oil price or higher interest rates, leading to much bigger than expected profits.

A hike in official interest rates has resulted in record profits for Italian banks, prompting the government's initial decision.

The surprise move was agreed by Prime Minister Giorgia Meloni's ministers at Monday's cabinet meeting, where they pledged to invest the funds raised into helping households and businesses struggling with the cost of borrowing.

"One has only to look at banks' first-half profits to realise that we are not talking about a few millions, but of billions," Deputy Prime Minister Matteo Salvini told a news conference in Rome late on Monday.

But Italian banks said the tax on their profit would be "substantially negative" for the sector.

Initial reports suggested around €2bn (£1.7bn) could be generated from the levy, before the cap.

Italy's parliament now has 60 days to pass the tax decree into law.

Other European countries including Hungary and Spain have imposed similar windfall taxes on banks.

In May, Lithuanian lawmakers backed a temporary windfall tax on banks to fund defence spending, while Estonia is planning to raise the tax level on banks to 18%, up from 14% this year.-bbc

Invest Wisely!

Bulls n Bears 

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INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

Heroes’ Day

Aug 14

Defence Forces Day

Aug 15

Padenga

EGM

Royal Harare Golf Club

August 16 – (10am)

Border Timbers

EGM

4 – 12 Paisley Road, Southerton, Harare, or virtually :https://escrowagm.com/eagmZim/Login.aspx” 

August 18 – (10am)

zIMBABWE

2023 harmonised elections

August 23

Companies under Cautionary

CBZH

GetBucks

EcoCash

Padenga

Econet

RTG

Fidelity

TSL

FMHL

 <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 s 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 d from third parties.

(c) 2023 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:  <mailto:info at bulls.co.zw> bulls at bullszimbabwe.com Tel: +263 4 2927658 Cell: +263 77 344 1674

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