Major International Business Headlines Brief::: 15 December 2023

[Bulls n Bears]

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Major International Business Headlines Brief:::  15 December 2023 

 


 

 




 


 

 


 

ü  Nigeria: I Will Make Nigeria Import, Export Hub - Tinubu

ü  Kenya: Travel Agents Welcome Govt's Visa-Free Requirement for Visitors

ü  Somalia: IMF and World Bank Announce U.S$4.5 Billion in Debt Relief for Somalia

ü  Nigeria: CBN Suspends New Request for Intervention Loans

ü  Nigeria: Why Food Prices Keep Rising Despite Harvest

ü  Nigeria: Economic Reforms - Nigerians Under Poverty Line Rise to 104 Million - World Bank

ü  Africa: U.S. Invests in Africa in Effort to Counter Chinese Influence

ü  Nigeria: Labour Leaders Fume Over Tenure Limitation Circular

ü  Nigeria: NNPC Ltd Remitted N4.5 Trillion Revenue in October - Kyari

ü  Nigeria: We're Addressing Cash Scarcity, N3.4tn Now in Circulation - CBN

ü  Russian gas giant Gazprom makes £39m profit in North Sea

ü  Interest rates: Too early to speculate about cut, says Bank boss

ü  Gautam Singhania: Domestic abuse claims threaten India tycoon's fortune

ü  Threads: Meta's rival to Elon Musk's X launches in EU

ü  Driverless car firm Cruise to cut 900 jobs

 


 

 


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Nigeria: I Will Make Nigeria Import, Export Hub - Tinubu

President Tinubu has disclosed plans by his administration to turn Nigeria into a hub of export and import activities.

 

The president also underscored the need for the integration of complex data to interpret the patterns of transactions and interactions in international trade.

 

He hinted at plans by his administration to address what he termed historical inadequacies of policymaking that was thwarted by a lack of comprehensive data in Nigeria.

 

President Tinubu disclosed this yesterday during the 2023 Comptroller-General of Customs Annual Conference at Lagos Continental Hotel, Victoria Island, Lagos, saying because data is the guiding light in the ever-evolving landscape of the modern world, Nigeria can no longer afford to function in the dark.

 

 

He lamented the lack of comprehensive data, saying it had been "a technological affliction" that has hindered the growth trajectory of Nigeria and the entire Africa, impeding the ability to make informed governance decisions.

 

The president, who was represented at the conference by his deputy, Vice President Kashim Shettima, noted that the grand vision of his administration is to deploy data to make sound government decisions.

 

Shettima, in a statement by his spokesman, Stanley Nwocha, described Tinubu as an "accounting virtuoso" with an unparalleled understanding of data and its significance to piloting the affairs of the country.

 

He said it was due to his knowledge of data as the invaluable gold of the 21st century that the president strategically appointed tech-savvy Nigerians into critical government positions in order to ensure strategic planning.

 

 

He stated: "Even before we were given this mandate, we knew that every facet of our lives is woven with data. We must not only commit to deploying data to make decisions within the government but also address the historical inadequacies of Nigerian policymaking, often impeded by a lack of comprehensive data. Our current governance landscape demands a transformative intervention, and the solution is what has brought us together today.

 

"Our ambition extends beyond accumulation; it extends to transformation. We aspire to position Nigeria as the preferred destination for all stakeholders involved in export and import activities overseen by the Customs."

 

"There's no doubt that the chiming of this clock of modernity is inviting us to take action. It's inviting us to adopt evidence-based processes and innovative strategies to align policies with the objectives of this administration, to streamline decision-making, and to resolve conflict arising from misinformation and inconsistent policies within the government.

 

 

Observing that the benefits of comprehensive data go beyond determining revenue generation, he said, "Data provides the sharpest lens for us to connect the dots, even in establishing the security of our borders. We can easily determine the traffic of people and goods around a specific border and share indisputable information with other nations with just a punch on our computers.

 

"Distinguished ladies and gentlemen, I assure you that we remain resolute in our belief that Nigeria is unequivocally on track not only to accumulate terabytes of factual surveys but also to establish a robust public service system that upholds data integrity at its core."

 

Expressing delight with efforts by the Nigerian Customs Service to accumulate large amount of data to shape a public service system that upholds data integrity at its core, the President noted that the first step is to invest in the training and capacity-building of Customs officers "to stand shoulder to shoulder, terabyte by terabyte, with the best minds in the world."

 

Declaring the conference open, he expressed hope that discussions at the annual event would set the trajectory for a new era in the Nigeria Customs Service.

 

Earlier, the Customs comptroller-general G, BA Adeniyi, expressed optimism that the theme of this year's conference would provide guiding standards and principles in helping the Nigerian government open the frontiers, as it is requisite that the Customs streamline and integrate its services in its bid for global service delivery.

 

In his goodwill message, the Director General of the World Customs Organisation (WCO), Dr Kunio Mikuriya, praised the Nigerian Customs for upscaling global service delivery in maritime service delivery.

 

    Leadership.

 

 

 

 

Kenya: Travel Agents Welcome Govt's Visa-Free Requirement for Visitors

Nairobi — Travel agents have welcomed a decision by the government to scrap visa requirements for all international visitors effective January 1, 2023.

 

Through their umbrella body, the Kenya Association of Travel Agents (KATA), they said that the move reinforces the state's commitment to strengthening ties with global partners.

 

President William Ruto announced during the Jamhuri holiday on Tuesday that the country will be opening its doors to all visitors.

 

The removal of visa requirements aligns with the African Union's (AU's) call to member states to eliminate barriers to international business, promote cultural exchange, and build communal relationships to speed up the integration process.

 

 

It further reinforces Kenya's commitment to the realisation of the African Continental Free Trade Area (AfCFTA), which aims to enhance the continent's economic integration, facilitate the movement of people, and promote seamless trade and business activities.

 

KATA is now urging other AU member states to emulate Kenya's example and eliminate barriers to promote intra-African travel and trade.

 

"While expressing appreciation for the President's announcement, KATA urges government agencies to move with speed to issue proper guidelines on how the proposed Electronic Travel Authorization will be implemented," KATA said in a statement.

 

"Considering that we are already in the peak holiday season, KATA would like to see a seamless process that does not inconvenience travelers who have already made their travel arrangements."

 

    Capital FM.

 

 

 

 

Somalia: IMF and World Bank Announce U.S$4.5 Billion in Debt Relief for Somalia

The Executive Boards of the International Monetary Fund (IMF) and the World Bank’s International Development Association (IDA) have approved[1] the Heavily Indebted Poor Countries (HIPC) Initiative Completion Point for Somalia, which provides total debt service savings for the country of US$4.5 billion.[2] Following HIPC Completion Point, Somalia’s external debt has fallen from 64 percent of GDP in 2018 to less than 6 percent of GDP by end 2023. This debt relief will facilitate access to critical additional financial resources that will help Somalia strengthen its economy, reduce poverty, and promote job creation.

 

Debt service relief has been provided by the IMF (US$343.2 million), IDA (US$448.5 million), African Development Fund (ADF) (US$131.0 million), other multilateral creditors (US$573.1 million), as well as by bilateral and commercial creditors (US$3.0 billion). Bilateral creditors include members of the Paris Club, creditors from the Arab Coordination Group, and other official bilateral creditors.

 

 

“Somalia's debt relief process has been nearly a decade of cross governmental efforts spanning three political administrations. This is a testament to our national commitment and prioritization of this crucial and enabling agenda,” said Somalia’s President, H.E. Hassan Sheikh Mohamud. “For Somalia to move forward in the positive economic direction we all needed, we had to reform our laws, systems, policies, and practices. Reaching the HIPC Completion Point is the fruit of these reforms. When my government committed to the reform program nearly a decade ago, this was the result we envisaged.”

 

“Somalia's reform journey has been a true national process culminating in the remarkable success of determined economic reform implementation despite external challenges such as painful regular climatic shocks and the ongoing fight against international terrorism. We are proud to have reached the HIPC Completion Point,” said Somalia’s Minister of Finance, H.E. Bihi Iman Egeh. “Through our enabling reforms, we have consistently raised domestic revenue, strengthened public financial management, improved good governance and central banking operations, and enhanced the capacity of our national institutions. We will build on these successes going forward.”

 

 

The Executive Directors of both institutions determined that Somalia has made satisfactory progress in meeting the requirements to reach the HIPC Completion Point. Somalia has implemented a poverty reduction strategy for at least one year and maintained a track record of sound macroeconomic management as evidenced by the satisfactory implementation of the Extended Credit Facility (ECF) supported program (see IMF Press Release No. 23/437). This performance was achieved despite Somalia having to face the global Covid-19 pandemic, prolonged and severe drought, a desert locust infestation, the impact of external shocks on food supply and prices, and significant security risks. Somalia maintained steadfast progress on structural reforms and implemented thirteen of fourteen floating Completion Point triggers, including on public financial and expenditure management, domestic revenue mobilization, governance, social sectors, and statistics. The IMF Executive Board granted a waiver for the adoption and implementation of a single import duty tariff schedule at all ports.

 

 

“Somalia has made significant strides in rebuilding its economy and institutions after a devastating civil war. Reaching the HIPC Completion Point is a testament to the Somali authorities’ strong and sustained policy and reform efforts over the past years, despite numerous challenges, as well as the strong support from international partners,” said the IMF’s Director for the Middle East and Central Asia, Jihad Azour. “The Completion Point is a momentous achievement that restores debt sustainability and over time offers access to new external financing to support inclusive growth and poverty reduction. Maintaining sound macroeconomic policies and sustaining the reform momentum remain critical after the Completion Point for Somalia to reap the full benefits of the debt relief.”

 

“Reaching the HIPC Completion Point is a historic milestone for which the Somalia Government deserves full credit,” said the World Bank Vice President for Eastern and Southern Africa, Victoria Kwakwa. “Somalia has implemented critical reforms in support of pro-poor growth, poverty reduction, better public financial management and debt management. These reforms establish the conditions for the effective use of irrevocable debt relief to support the people of Somalia. Deepening structural reforms after the Completion Point will be critical to boost private sector growth and create fiscal space to invest more in human development and infrastructure in support of inclusive and resilient growth.”

 

The Somali authorities remain firmly committed to sustaining the reform momentum post-HIPC to build resilience, promote inclusive growth, and reduce poverty. The World Bank and IMF will continue working together to provide the technical assistance and policy guidance the authorities need to achieve these goals. The IMF will continue its engagement with Somalia in the context of the new three-year IMF financial arrangement as well as capacity development support sponsored by the Somalia Country Fund. The World Bank has agreed on a new five-year Country Partnership Framework with Somalia focused on continuing support to state and institution building, infrastructure and jobs, human capital, and resilience. The current World Bank portfolio in Somalia stands at US$2.3 billion spanning human capital development, access to energy, and action against cyclical climatic shocks such as floods and drought.

 

Debt service savings of US$4.5 billion incorporate debt relief of about US$4.2 billion under the Enhanced HIPC Initiative, US$115.1 million under the Multilateral Debt Relief Initiative (US$96.4 million from IDA and US$18.7 million from ADF), US$164.3 million under beyond-HIPC debt relief from the IMF, and commitments from Paris Club creditors to provide beyond-HIPC debt relief to cancel most of their outstanding claims.

 

The Heavily Indebted Poor Countries (HIPC) Initiative

 

In 1996, the World Bank and IMF launched the HIPC Initiative to create a framework in which all creditors, including multilateral creditors, can provide debt relief to the world's poorest and most heavily indebted countries to ensure debt sustainability, and thereby reduce the constraints on economic growth and poverty reduction imposed by the unsustainable debt service burdens in these countries. Somalia is the 37th country to reach Completion Point under the HIPC Initiative.

 

The Multilateral Debt Relief Initiative (MDRI)

 

Created in 2005, the aim of the MDRI is to further reduce the debt of eligible low-income countries and provide additional resources to help them reach their development objectives. Under the MDRI, three multilateral institutions—the World Bank’s IDA, the IMF, and the African Development Fund—provide 100 percent debt relief on eligible debts to qualifying countries, at the time they reach the HIPC Initiative Completion Point.

 

 

 

 

 

Nigeria: CBN Suspends New Request for Intervention Loans

The Central Bank of Nigeria (CBN) has announced the suspension of new loan applications under its intervention programme.

The announcement was communicated in a circular entitled ''Suspension of Acceptance of New Applications under the Existing Central Bank of Nigeria, CBN Development Finance Intervention Programme,'' addressed to the chief executives of banks.

 

The circular, signed by Sa'ad Hamidu, Acting Director of the Development Finance Department, marks a significant shift in its approach to development finance intervention funds, which was the cornerstone of the previous central bank governor.

 

 

The CBN also tasked commercial banks, which previously facilitated the distribution of these intervention loans, with the responsibility of recovering outstanding loans issued under the programmes.

 

Similarly, Apex bank has again assured members of the public that it is addressing the reported cases of cash scarcity in some major cities across the country.

 

It attributed the current situation to the hoarding of the Naira by some persons due to challenges experienced during the Naira redesign project.

 

The Bank's Acting Director in charge of Corporate Communications, Mrs. Hakama Sidi Ali gave the latest assurance in a chat with newsmen in Abuja, on Wednesday, December 13, 2023, disclosing that the CBN was monitoring the situation and had released sufficient cash to its branches across the country for onward distribution to Deposit Money Banks (DMBs).

 

Giving further clarification on the cases of hoarding, Sidi Ali explained that currency in circulation as of February 2023, was N1 trillion, while that figure had risen to over N3.4 Trillion as of December 11, 2023. This, according to her indicated that there was sufficient cash in circulation, except that the cash was in the hands of individuals who were apprehensive due to their previous experiences.

 

She insist that the CBN had adequate cash to meet the day-to-day transaction needs of Nigerians and therefore, appealed to Nigerians to be patient while the CBN does the needful to ensure the availability of cash, particularly during the yuletide and beyond.

 

While also urging Nigerians to continue to accept all Naira banknotes for their daily transactions, Sidi Ali reiterated the Bank's earlier call to the public to embrace alternative modes of payment, e-channels, to reduce pressure on the use of physical cash.

 

    Daily Trust.

 

 

 

Nigeria: Why Food Prices Keep Rising Despite Harvest

Abuja, Jos, Minna, Kano, Katsina — Food prices in Nigeria have increased at a rate not seen in many decades. This is even as the harvest of most grains is still ongoing, thereby causing stakeholders to express fear on the negative effect on the agro-economy and the availability of food.

 

Although Nigeria is not specifically in this predicament alone, the country's reliance on imports for the majority of its crops--aside from cassava, yam and a few other crops--makes the country extremely vulnerable to the global trajectory.

 

There is a shortage of critical crops that power Nigeria's major agri-based industries and food systems, including rice, maize, wheat and soybeans. The problem is made worse by the depreciation of the naira, which has made imports--which were previously less expensive--even more costly.

 

 

Why prices soar

 

Our correspondents across the country spoke with actors in the grains markets on why, despite the bumper harvest recorded by farmers this year, the cost of farm produce has soared.

 

At Katsina markets, prices keep rising, a development that is frightening to most households, especially as the journey has just started towards the 2024 cropping season.

 

Alhaji Sa'adu Abashe, a grain dealer from Kano State, said most people were not conversant with the factors affecting the price of farm produce this year.

 

According to him, the depreciation of the naira and the high cost of living will not spare farm produce.

 

 

''Take a look at the general cost of living in the country; high cost of fertiliser, inputs, labour and fuel used in transporting the produce from one market to the other. Everything has tripled and it must be translated into the unit price of farm produce in the market.

 

''Maize, sorghum, soybeans, beans, millet and rice have each crossed N30,000 per 100kg and this is at their harvesting period,'' Alhaji Sa'adu said.

 

He added that because the naira had drastically lost its value, the seemingly huge revenue the farmers were accruing was not enough to take care of their capital projects such as marriage.

 

''There is also the lingering food crisis in this continent of Africa occasioned by Covid-19, Russia/Ukraine war and the political crisis in Niger Republic. The sanctions placed by ECOWAS have made life difficult for an average Nigerien thus opening the routes of smuggling farm produce from our local markets at exorbitant prices,'' he said.

 

 

Another grain merchant at Dandume market, Alhaji Muhammad Salisu, said the huge profit grain hoarders realized last year has motivated many to stockpile produce in this harvest period.

 

''Hoarding of assorted grains has become a lucrative venture since last year. Those that bought maize at N18,000 to N22,000, sold same at not less than N55,000. Therefore, they have built new stores where they are now stockpiling produce. This is fast creating high demand for produce in our local markets and very soon scarcity will set in.''

 

Salisu further said because of the high cost of food items experienced since last season, many local farmers have withheld their farm produce to save food and resources for the future.

 

''Some months back, many of our local farmers had food crisis as they sold off their farm produce. In order to be on the safer side, after this harvest, many have reserved their produce in case of any eventuality,'' Alhaji Salisu added.

 

Similarly, Sani Kabiru Malumfashi, a farmer in Katsina State, said another factor that jacked up the price of farm produce was the high cost of complementary food items such as flour, couscous, rice, macaroni and spaghetti.

 

''We now majorly rely on homegrown foods for survival; an average household of 10 people cannot afford macaroni or spaghetti at N11,000 per carton, or local rice at N2,500 per measure. They go for maize or sorghum to make their dishes at a cheaper rate. This also places demand pressure on the farm produce making prices go high.''

 

He added that insecurity has also made large farms no-go areas for farmers, a situation that reduced the volume of grains produced yearly.

 

''Many large farms at Kankara, Faskari, Batsari and Sabuwa were not cultivated for fear of bandits. Where the farmers managed to produce, the miscreants set the farms on fire, hijacked the produce at harvest stage or demanded levy from farmers before they allowed them to harvest,'' Malumfashi said.

 

As of today, Tuesday, this reporter recorded that a bag of sorghum was sold at N35,000, maize N41,000, beans N55,000 and millet N45,000 at Bakori grains market.

 

The Kano State AFAN chairman, Malam Abdulrasheed Magaji Rimingado, stated that the rush for raw materials by some companies, coupled with the high cost of transportation, was among the reasons behind the high cost of agro commodities.

 

He explained further that the demand by companies for raw materials has increased the demand for the commodities in Nigerian grain markets.

 

''If you go round our markets, you will find out that there has been a mad rush for agricultural commodities and in view of the fact that many producing areas in the country haven't produced this year due to insecurity, that has created a shortage of farm produce like, sesame, rice, sorghum, maize among others.

 

 

''There is a competition between commodity consumers and companies hence the hike in prices,'' he said.

 

He added that there is an over 200% increase in transport fare which, he said, translated to an increase in commodity prices as well.

 

Aminu Bello Bagwai, a farmer and grain merchant with over 30 years' experience, said the hike in commodity prices is connected to the insecurity issues that have denied farmers in some places access to their farms, adding that the demand for agro commodities also increased when supply decreased due to the insecurity challenges.

 

In Niger State, marketers and farmers attribute the constant rise in the cost of food items to an increase in demand in the face of low supply.

 

The Chairman, Grain Sellers, Lemu Market, Gbako LGA of the state, Alhaji Danladi Kowangi, said unless government puts in place necessary measures that would increase the productivity of farmers as well as encourage more people to embrace farming, the price of foods may likely not come down.

 

He maintained that companies and wealthy individuals were also mopping up grains, especially rice, beans and maize directly from farmers, thereby causing a serious decrease in supply to the market.

 

Wealthy individuals and companies are buying directly from farmers and stocking up their stores, resulting in low supply to our markets. As farmers are harvesting, companies are buying and we learnt that some of them are also exporting produce like paddy rice, and wheat to other countries.

 

''Before, when farmers started harvesting, prices of food items usually came down because when you have enough supply in the markets and not many people are buying, you have no choice but to bring down the price. But that is no longer the case.

 

''Also before, I used to buy about five trailer loads of paddy because you will get enough to buy but this year, I telI you I have not been able to even fill up one trailer because companies have mopped up produce right from the from farmers and kept them in their stores.

 

''Recently, someone contacted me to get him 500 bags of maize and we got it at the cost of N25,000 per bag. So, companies and individuals are mopping up grains and they don't take it to the market to sell; they are keeping them in their stores.''

 

Alhaji Danladi said a bag of paddy rice has gone up from N22,000 to N26,000 even as farmers were just harvesting, adding that a bag of maize is now N35,000; while millet is also N35,000 in Lemu market.

 

Daily Trust gathered that in Batati market, Lavun LGA in Niger State, one of the rural markets where food items were always cheap, a bag of sorghum is N30,000; millet N23,000 while red beans is sold at between N40,000 and N45,000 among others.

 

One of the rural farmers in the state, Salihu Ibrahim, also told our correspondent on the phone that the demand for produce was higher than the supply.

 

He further stated that the low fertility of soil no longer allowed farmers to record high yields; while access to fertilizers still remained a serious problem.

 

While speaking with Daily Trust, the chairman of the grain market in Saminaka, Manu Isah Idris, said there are many reasons for the increase in food prices this season.

 

He said the war in places like Ukraine and Palestine, contributed to the increase in food demand, adding that the removal of fuel subsidy in Nigeria also contributed to the rise in food prices.

 

Alhaji Idris explained that maize was not cultivated much this year because of the cost of fertilizer, adding that those who did not cultivate were trying to buy because they didn't know what would happen next.

 

A farmer and grain dealer, Alhaji Ali Tanimu Kunkuru, explained that the reason for the increase in the price of maize this year is that many farmers have not grown maize this year but soybeans because they did not have money to buy fertilizer to grow maize.

 

He further explained that the demand for feeds and household consumption triggered the hike in the price of maize.

 

    Daily Trust.              

 

 

 

 

Nigeria: Economic Reforms - Nigerians Under Poverty Line Rise to 104 Million - World Bank

Nigeria's poverty level has taken a notch higher, at the backdrop of the recent economic and fiscal reforms, World Bank report reveals.

 

A World Bank report has indicated that Nigeria's poverty level has taken a notch higher, at the backdrop of the recent economic and fiscal reforms.

 

The key reforms include the removal of petrol subsidy and the foreign exchange market rate restructuring.

 

The bank, however, commended the Federal Government for what it considered 'bold reforms' necessary to rescue Nigeria from fiscal cliff, describing the current pains as temporary.

 

But it also said the policies have created intense pressures on cost of living, which have pushed more Nigerians into hardship, with 104 million now living below the poverty line.

 

The World Bank report also indicated that the number of poor people in Nigeria had grown from 95 million in 2021 to 100 million in 2022, while the Nigerian Bureau of Statistics, NBS, indicated that the figure was 82.9 million in 2019 and 85.2 million in 2020.

 

 

In its World Bank Nigeria Development Update, NDP, entitled 'Turning the Corner: Time to Move From Reforms to Results', the bank stresses the need to continue with the reform momentum to complete the reforms and to address the costs of the reforms.

 

It further stated: ''Inflation remains at record high levels for Nigeria, 27.3 per cent Year-on-Year, YoY, in October 2023, partly driven by the one-off price impacts of the removal of the gasoline subsidy.

 

''The impact of this is especially hard on poor and vulnerable citizens. The FX market has remained volatile and in a period of continuing adjustment to the new policy approach, with significant fluctuations in the exchange rate in both the official and the parallel markets. Revenue gains from the FX reform are visible.

 

''However, there is a need for more clarity on oil revenues, especially the financial gains of Nigeria National Petroleum Corporation Limited, NNPCL, from the subsidy removal, the subsidy arrears that are still being deducted, and the impact of this on Federation revenues.''

 

 

In his appraisal of the country's reforms, Shubham Chaudhuri, World Bank Country Director for Nigeria, stated: ''The petrol subsidy and FX management reforms are critical steps in the right direction towards improving Nigeria's economic outlook. Now is the time to truly turn the corner by ensuring coordinated fiscal and monetary policy actions in the short to medium term.

 

''Continued reform implementation can ensure that Nigeria benefits from the difficult adjustments underway. This includes ensuring that improved oil revenues following the sharply increased PMS price accrue to the Federation.

 

''In the medium-term, the economy will then begin to benefit from increasing fiscal space for development spending, including on power and transport infrastructure, as well as on human capital.''

 

 

He further said that between N300 billion -N400 billion was expended on fuel subsidy monthly, before the subsidy removal and that the expectation was that the NNPCL should have been paying such amount to the Federation Account, but which has not been the case.

 

World Bank's recommendations

 

The latest NDU report recommended specific actions required to further sustain and achieve the full benefits of reforms already embarked on by the Government.

 

These include: controlling inflation and improving the stability of the FX market; achieving fiscal consolidation by sustaining savings from the PMS subsidy reform and improving non-oil revenues; addressing structural barriers to growth, such as removing trade barriers.

 

It stated further: ''With the continued implementation of macroeconomic stabilization reforms, Nigeria's economy is expected to grow at an average annual rate of 3.5 per cent in 2023-2026, or 0.5 per centage points higher than in a scenario where the reforms had not been implemented.

 

Alex Sienaert, World Bank Lead Economist for Nigeria and co-author of the Report, also stated: ''In 2024, Nigeria has an opportunity to turn the corner to a more stable and predictable macroeconomic environment, and easier access to foreign exchange (FX) and imported inputs, which is critical to creating new jobs and lifting people out of poverty''.

 

The NDU report indicated that Nigeria was not yet out of the woods but on the path to full recovery, as a result of the various policies being implemented by both fiscal and monetary authorities.

 

The World Bank called on the Nigerian National Petroleum Company Limited (NNPCL) to make public its Statement of Accounts and transparently disclose its revenue inflows.

 

The report read in part, ''The removal of the subsidy was announced on May 29 and pump prices were adjusted on June1.

 

''This results in expected fiscal savings of around N2 trillion in 2023 or 0.9 per cent of GDP.

 

''Between 2023 and 2025, the expected gains are over N11 trillion, against a scenario in which the subsidy had continued''.

 

NNPCL's account for scrutiny --Edun

 

The Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, also insisted that NNPCL's account must be audited.

 

His words, ''There will be earnest scrutiny and I am sure NNPC is getting ready for that. We want revenue to come into the government coffers from NNPC and all other revenue agencies.''

 

 

The last two Minister of Finance, namely, Mrs. Kemi Adeosun and Mrs. Zainab Ahmed had publicly said that the accounts of the NNPCL would be looked into, but there has been no report of such audit made public.

 

Salary review in 2024

 

Mr. Edun also revealed that the federal government would come up with a new structure of salaries in 2024.

 

He did not give details, other than that it was statutory to review salaries every five years, according to the Salaries and Wages Commission Act and that all stakeholders including labour leadership would be involved.

 

Huge FX in Domiciliary Accounts

 

The Minister of Finance revealed that wealthy Nigerians were holding huge sums of dollars and other foreign currencies in their Domiciliary bank accounts in the country.

 

According to him, there was a lot of FX liquidity in Nigeria and the Federal Government would take steps to make holders of such accounts release the money.

 

Mr. Edun said that the government would not force holders of such accounts to give them up but would provide incentives to enable them invest in attractive instruments, going forward.

 

I'm not against quasi-fiscal interventions but --Cardoso

 

The Governor of the Central bank of Nigeria, Mr. Olayemi Cardoso, who was a panelist at the NDU presentation said that he was not against quasi fiscal interventions by the CBN but that his focus would remain how to reduce inflation through price stability.

 

On the controversy around his failure to convene a Monetary Policy Meeting since coming into office, the governor said that the past frequent MPCs did not achieve their objectives and that he would not continue along that line.

 

His words, ''To what extent did the meetings achieve their objectives? The answer is no. That is why we have chosen to do it differently. Holding these meetings take a lot of time and energy.''

 

According to him, his team holds Liquidity Management meetings every 8.00 am to review the liquidity situation in the system and that he would take every necessary action to mop up excess liquidity in the system, adding, ''we have increase OMO (Open Market Operations) both in value and volume.''

 

Industry Minister counters W/Bank on power subsidy

 

In her contribution, the Minister of Industry, Doris Uzoka-Anite, disagreed with the position of the World bank on Power subsidy.

 

The bank had advocated a power regime without subsidy in order to boost investor confidence and ensure a cost- reflective tariff.

 

However, the minister insisted, ''there is nothing wrong with power sector subsidy. Subsidy in the power sector is subsidy that supports production. Countries everywhere support production and export.''

 

Vanguard News

 

 

 

 

Africa: U.S. Invests in Africa in Effort to Counter Chinese Influence

Washington — The United States has struck hundreds of deals worth $14.2 billion with African nations over the past year as Washington tries to counter growing influence on the continent by China.

 

The 547 new trade and investment agreements represent a 67% increase from 2022 in the number and value of closed deals, according to British Robinson, coordinator for the Prosper Africa trade and business initiative, a program that connects U.S. and African businesses.

 

Robinson said the presidential and national security initiative is aimed at strengthening strategic and economic partnerships by mobilizing two-way trade and investment flow, and young people are key to realizing that goal.

 

 

"The U.S. business and investment community is increasingly recognizing Africa's extraordinary market potential and dynamism. The continent is home to the world's youngest population, an asset that creates significant opportunities for viable business deals that create jobs and foster shared prosperity," Robinson said during a December 12 virtual media briefing.

 

Judd Devermont, U.S. National Security Council senior director for African Affairs, said it has been a record-setting year for U.S.-Africa relations, with the United States following through on its commitment to invest some $55 billion over three years.

 

"As we wind down 2023, we have already delivered on more than 40% of this commitment. In fact, by the end of year two, we anticipate surpassing 70% of our goal, if not more," Devermont said. "With these resources, we've expanded our trade and investment; we have advanced major food and health security partnerships; charted a course for digital transformation; forged new security and good governance cooperation; and catalyzed landmark diaspora-driven engagement."

 

 

The briefing was held to mark the one-year anniversary of the U.S.-Africa Leaders Summit in Washington, where Biden pledged to go "all in" on the continent.

 

The announcement comes as Washington works to deepen its engagement with Africa, where China has been expanding its influence with infrastructure, investment, loans, among other initiatives.

 

Devermont, President Joe Biden's top Africa adviser, said Africa is not only important economically but politically, adding the U.S. has been pushing for more African voices on the world stage for some time.

 

"President Biden last year called for the African Union to become a permanent member of the G20, and in September we proudly welcomed this development," Devermont said. "We're now advocating for a third seat for the --for Sub-Saharan Africa on the IMF board, and of course we reiterate our call for permanent representation for Africa at the UN Security Council."

 

 

The U.S. has had to alter its investment and trade strategies in countries affected by conflict. U.S. Department of State Bureau of African Affairs Principal Deputy Assistant Secretary of State Jonathan Pratt said that, in Sudan, U.S. policy has been to put sanctions in place. "Sanctions haven't just been on individuals; they've also been on companies and different asset classes. And so that's one strategy that we've used in conflict countries and locations," he said.

 

Pratt said in Niger, one of several countries hit by military coups and violence, the United States is prioritizing peace through negotiations.

 

"We've been very supporting of the ECOWAS (Economic Community of West African States) sanctions that have been put in place. And then to support that effort we have leveraged our own assistance and investments, which we've announced very clearly, if the country and the leadership there turns back to a democratic path, we're willing to explore progressively lifting that freeze in assistance and potential investments," Pratt said, adding that the U.S. also uses "a combination of sanctions plus leveraging our engagement and assistance."

 

Devermont agreed saying that trade investment has been an important part of the U.S.-Africa Leaders Summit.

 

"One of the most important initiatives that has come out of the continent in the last couple years has been the Africa free - Continental Free Trade Area. And we signed an MOU with the AfCFTA at this summit because the goals of the AfCFTA to unite 1.3 billion people in a single market and to trade a nominal GDP that's larger than India's is a huge boon. And in that process, harmonizing regulations, reducing trade and non-trade barriers, that will benefit all countries whether they are experiencing a crisis or not."

 

Devermont said the U.S. is also looking at the underlying drivers of conflict, and is investing in new approaches, including elevating its focus on elections and anti-corruption measures.

 

VOA.

 

 

 

 

Nigeria: Labour Leaders Fume Over Tenure Limitation Circular

Organised Labour in the nation's public sector unions has raised uproar over a circular from the Office of the Head of Service, HoS, of the Federation, limiting the tenure of union officers to two terms of four years each, describing the circular as not only illegal, but a nullity.

 

According to Labour leaders, the circular is toxic, aberration and an interference in the internal affairs of trade unions, contrary to known laws and international standards.

 

Reacting, General Secretary of the Non-Academic Staff Union of Educational and Associated Institutions, NASU, and Vice President Public Service International, PSI, Prince Peters Adeyemi, said: ''It is inconsistent with relevant trade union laws and a violation of the provisions in the federal government approved constitutions of industrial unions.

 

 

The circular is a nullity and cannot stand the text of time. The office of the HoS is usurping the functions of the Federal Ministry of Labour and Employment. The HoS is overstepping her bounds.''

 

Similarly, the President of Amalgamated Union of Public Cooperation Civil Service Technical and Recreational Services Employees, AUPCTRE, Benjamin Anthony, among others claimed ''the circular was smuggled in because during the discussing of the Public Service Rule, PSR with Labour at Public Service Institute nothing like that was discussed.''

 

Another public sector union leader who spoke on condition of anonymity, described the circular as not only toxic, but against the International Labour Organisation, ILO, Convention 87, saying ''The circular violates the provisions of ILO's Convention 87 which guarantees the freedom of Association and protection of the rights to organize for workers and employers. It is also enshrined in section 40 of the 1999 constitution. Articles 1, 2, 3, and 4 among others of Convention 87 guarantee the right of workers and employers to exercise these rights without interference from the government.''

 

 

Recall that the public sector unions had earlier rejected a circular dated August 1, 2023, and a reminder dated November 30, 2023, contending among others, that ''As a matter of fact and law, Trade Unions are registered according to the provisions of Trade Unions Act which clearly provides for tenures of Executives of Trade Unions thus, appointment and removal of union Executives are not within the purview of the office of Head of Civil Service of the Federation.''

 

Among the affected unions are the Amalgamated Union of Public Cooperation Civil Service Technical and Recreational Services Employees, AUPCTRE, NASU, Nigeria Civil Service Union, NCSU, Nigeria Union of Public Service Reportorial, Secretarial, Data Processors and Allied Workers, NUPSRAW, National Association of Nigeria Nurses and Midwives, NANNM.

 

Vanguard

 

 

 

 

Nigeria: NNPC Ltd Remitted N4.5 Trillion Revenue in October - Kyari

Mr Kyari explained that the establishment of the Petroleum Industry Act (PIA) helped the NNPC Ltd to improve its operations.

 

The Nigerian National Petroleum Corporation Limited (NNPC Ltd) remitted N4.5 trillion as revenue to the federation account in October.

 

The Chief Executive Officer of NNPC Ltd, Mele Kyari, disclosed this on Wednesday when he appeared before the Senate Committee on Finance to defend the company's budget for the 2024 fiscal year.

 

''I am glad to inform you, Mr Chairman and distinguished senators that as of October we are able to deliver N4.5 trillion into the federation account as a company to this country in 2023'' Mr Kyari said.

 

 

Mr Kyari explained that the establishment of the Petroleum Industry Act (PIA) helped the NNPC Ltd to improve its operation.

 

''Every national oil company has a trading company. We have always had one which. never worked prior to PIA Implementation.

 

''Currently NNPC Ltd is delivering on its mandate through the PIA reforms that have brought us to be at par with our peers, across the globe, and not to lose money anymore'' he said.

 

He assured that the company will continue to develop the nation's petroleum industry.

 

''There is always a parallel market in every country. There is also an import and export window in every country, even in the developed world.

 

''But there is always a narrow gap between the two and it takes time for you to have stability in this gap so that you have a low margin between the two for a sustained period of time, then businesses will thrive.

 

''There is a line of sight around this. I am very confident that by the end of the first quarter of next year, those margins will narrow and stability will come and you will see others coming into the market'', he said

 

Chairman of the committee, Sani Musa, commended the NNPC Ltd for the development.

 

    Premium Times.

 

 

 

 

Nigeria: We're Addressing Cash Scarcity, N3.4tn Now in Circulation - CBN

The Central Bank of Nigeria has reassured Nigerians that there are enough naira notes in circulation to meet their cash needs.

 

CBN's Acting Director of Corporate Communications, Mrs Hakama Ali, gave the assurance in a statement on Wednesday.

 

This came amid growing apprehension over cash scarcity in different parts of the country, especially among bank customers.

 

Ali however said naira notes in circulation had increased from N1tn in February to N3.4tn in December. This, according to her, indicates that there is sufficient cash in circulation, which she blamed on the hoarding of the naira by some persons due to the challenges they faced during the naira redesign project.

 

She said the CBN was monitoring the situation and had released sufficient cash to its branches nationwide for onward distribution to Deposit Money Banks.

 

She stated, ''The CBN has adequate cash to meet the day-to-day transaction needs of Nigerians. We appeal to Nigerians to be patient while the CBN does the needful to ensure the availability of cash, particularly during the Yuletide and beyond.''

 

She urged members of the public to continue accepting all naira notes, while encouraging them to embrace alternative modes of payment, especially e-channels, to reduce the pressure on cash.

 

    Daily Trust.

 

 

 

 

Russian gas giant Gazprom makes £39m profit in North Sea

Russian energy giant Gazprom earned €45m (£39m) from its gas field in the North Sea last year, accounts show.

 

Gazprom has been producing gas from the Sillimanite field, which is spread across UK and Dutch waters, since 2020.

 

Sir Ed Davey, leader of the Liberal Democrats said it was "totally unacceptable" that gas from UK territory was supporting "Putin's illegal war against Ukraine".

 

The government said it would "ratchet up economic pressure" on Russia.

 

The Sillimanite field, which is 200km from the Dutch coast, is operated in a joint venture between Russian firm Gazprom and German company Wintershall. Gas produced from the field is taken onshore in the Netherlands.

 

While there is no suggestion the arrangement is illegal, the UK, the US and the EU have introduced tough economic sanctions designed to restrict Russia's ability to profit from energy exports, aimed at limiting its ability to fund its war in Ukraine.

 

A number of Gazprom executives, including the chief executive Alexei Miller, are under sanctions from the UK government, though Gazprom itself is not. The company still supplies gas to continental Europe via pipelines, though the volumes are much reduced since the war began.

 

Accounts show that Gazprom International UK, a subsidiary of the Russia energy giant, made a pre-tax profit of €45m in 2022, and paid a €41m dividend to Gazprom International Projects BV, the company's immediate owner in the Netherlands. A further dividend of €1.7m was paid in June this year.

 

The company's ultimate owner is PJSC Gazprom, based in Moscow.

 

Gazprom is majority-owned by the Russian state, and is the country's largest taxpayer, contributing $80bn (£63bn) to the Russian government, according to the state news agency TASS. It has also recruited and financed its own militias which have fought on the frontline in Ukraine.

 

Shell trading Russian gas despite pledge to stop

Sir Ed, a former energy secretary, said it was "totally unacceptable that gas taken from UK territory is bolstering the coffers of Putin's illegal war against Ukraine".

 

Campaign group Global Witness called it "an indictment of the UK's approach to Russian oil and gas".

 

"Whilst the government decries the war, it's absurd to allow the subsidiary of a Russian state enterprise which has its own militia fighting in Ukraine to enrich Putin's regime from the North Sea," it added.

 

A government spokesman said it would "continue to work alongside our partners to deny Russia access to any of our goods or technologies that it could use in its war machine, restricting Russia's ability to fight a 21st century war".

 

"Putin and his supporters must - and will - pay the price for their illegal invasion of Ukraine," he added.

 

"We will continue to ratchet up economic pressure and come down hard on all emerging forms of circumvention until Ukraine prevails and peace is secured."

 

The company's total tax bill was €29m, divided between the UK and Dutch governments. This includes €4m under the UK windfall tax imposed on energy companies after prices surged following the war in Ukraine, and €5m under the Dutch equivalent.

 

All Gazprom International UK's revenues are from sales outside the UK, the accounts say. The company ended its agreement to sell gas to Wintershall in September this year, and replaced it by an agreement to sell gas to the Swiss-based trading company Gunvor, the accounts show.

 

Gazprom's UK energy supply business, which had thousands of business customers, was nationalised by the German government last year when its parent company was close to bankruptcy. It has been renamed SEFE Energy.

 

Wintershall and Gazprom did not respond to the BBC's requests for comment.-bbc

 

 

 

 

Interest rates: Too early to speculate about cut, says Bank boss

It is "too early" to speculate about when UK interest rates will be cut, according to the governor of the Bank of England.

 

Andrew Bailey spoke after the Bank voted to hold interest rates for a third time at 5.25% - a 15-year high.

 

On Wednesday, the US Federal Reserve signalled that rates were at or close to a peak and could fall next year.

 

But in contrast, Mr Bailey said it was not possible to "definitively" say the same for the UK.

 

The Bank has lifted interest rates 14 times since December 2021 to cool soaring inflation, which measures the pace at which prices are rising.

 

In the UK, this has been fuelled by higher energy and food costs following Russia's invasion of Ukraine.

 

While price rises have eased to 4.6%, that is still more than double the Bank of England's 2% inflation target.

 

"We have seen an unwinding of many of the shocks, the big shocks, that we had last year, particularly related to the war in Ukraine and so on," Mr Bailey said.

 

"But there is this persistent element to [inflation] which we have got to take out."

 

While he was encouraged by the progress made in slowing down inflation, the governor said: "My view at the moment is it's really too early to start speculating about cutting interest rates.

 

"I don't think that we can say definitively that interest rates have peaked," he said, but added: "I hope that we are at the top of the cycle."

 

How interest rates affect you and your money

UK economy falls unexpectedly as higher rates bite

US rates held as bank signals cuts next year

In the minutes from the Bank's rate-setting committee meeting, it said interest rates would need to remain higher "for sufficiently long" to return inflation to 2%.

 

One factor discussed by the Monetary Policy Committee (MPC) was that UK inflation remains worse than in the US and the eurozone.

 

While the main inflation rate has fallen everywhere, "core inflation [which strips out the most volatile goods] has fallen back by less in the UK" and "measures of wage inflation were also considerably higher in the UK than elsewhere".

 

Six out of the nine members of the MPC voted to hold rates at 5.25%, and there was no change to the language in the minutes that rates would remain at these levels for an "extended period".

 

It also signalled that interest rates could even rise "if there were evidence of more persistent inflationary pressures". Indeed, the other three committee members voted for a rise to 5.5% this month.

 

UK inflation v interest rates

Despite the Bank keeping rates on hold, some mortgage lenders are making moves with their own rates as they are confident the next move will be down.

 

Virgin Money and HSBC are reducing rates on their new fixed-rate deals on Thursday. TSB will follow suit on Friday.

 

Financial markets expect the Bank to start cutting interest rates by next May and some economists believe it has been too pessimistic about inflation.

 

Recent data has shown that UK pay growth has slowed while the price of Brent crude oil has fallen by 17% between November and December to around $75 per barrel.

 

The EY Item Club, an economic forecasting group, said it reckoned the Bank would start to rein back its resistance to cutting rates in early 2024.

 

"Signs of such a shift may start to become apparent when the committee meets next in February," said chief economic adviser Martin Beck. "The EY Item Club continues to think that the [Bank] will go for the first rate cut in May."

 

US signals rate cuts

Jerome Powell, chairman of the US Federal Reserve, showed a degree of cautionin his comments on the outlook for US interest rates after the central bank voted this week to keep them on hold.

 

"It is far too early to declare victory. There is a lot of uncertainty and we've seen the economy move in surprising directions so we're going to need to see further progress," he said.

 

But in the US, inflation has slowed more rapidly and separate forecasts by members of the Fed's rate-setting panel showed they expected the key borrowing rate to fall from the current range of 5.25%-5.5% to 4.5%-4.75% next year.

 

Mr Powell also said that the key interest rate was now "likely at or near its peak for this tightening cycle".

 

Like the UK and the US, the European Central Bank (ECB) also voted this week to keep interest rates for the 19-nation eurozone on hold, at 4%.

 

ECB president, Christine Lagarde, said that a cut had not been discussed "at all" by the bank and there remained a wide gulf between raising rates and cutting them.

 

"It's like solid, liquid gas," she said. "You don't go from solid to gas without going through the liquid phase."

 

Looking ahead, the Bank of England said that it expected economic growth to be broadly flat for the final three months of this year and over the coming quarters.

 

On Wednesday, new data showed that the economy - which is measured by gross domestic product (GDP) - shrank by 0.3% in October.-bbc

 

 

 

 

Gautam Singhania: Domestic abuse claims threaten India tycoon's fortune

A high-profile divorce settlement between a flamboyant Indian textile tycoon, Gautam Singhania, and his wife, Nawaz Modi, could lead to him forfeiting 75% of his $1.4bn (£1.1bn) fortune.

 

Both Mr Singhania and Ms Modi are board members and promoter shareholders of the publicly listed Raymond Group, one of India's best-known consumer brands.

 

The estranged fitness coach wife of the industrialist - who is known for his penchant for yachts, fast cars and private jets - is unwilling to settle for lower, a source close to Ms Modi has told the BBC, rebuffing news reports that the couple had initiated more "realistic" settlement talks.

 

Two family members from either side are mediating the dispute and the 75% figure is still very much on the table, sources have told the BBC.

 

"She says he has agreed to 75% in front of numerous people - friends, mediators, lawyers and chartered accountants. There's no going back on it," one source said, adding that Ms Modi was insistent that an irrevocable trust should be formed where the wealth was transferred and secured for her two daughters' future.

 

"Close to 96% of the net worth of the promoters of India's wealthiest families is parked in trusts," said Rishabh Shroff, partner at Cyril Amarchand Mangaldas, a Mumbai law firm. "These structures are increasingly attractive to wealthy business families, to shield their assets and insulate their businesses from insolvency, family or creditor disputes."

 

While Mr Singhania is reportedly keen on creating a trust where he is the sole trustee and settler, Ms Modi has opposed this proposal.

 

"Speaking as a neutral third party, I don't think she should agree to a trust structure where she has no voice or say on how it is run or governed. She will want to be a co-trustee with certain rights, along with being a beneficiary," Mr Shroff said.

 

"Most companies don't survive beyond three generations. Raymond is a fifth-generation business and Nawaz is keen that her daughters have a future in it," a source close to Ms Modi told the BBC.

 

Ms Modi is also said to be keen to remain a member of the board, and has no objections to her husband managing the business after their divorce.

 

She has received public support from her father-in-law, veteran businessman Vijaypat Singhania, who has in the past accused his son of driving him out of his own house in 2017, leaving him with little money to survive on - allegations Mr Singhania has previously denied.

 

Split wide open

The acrimonious feud between the couple first came to light when a video of Ms Modi being denied entry into a company Diwali party went viral in November.

 

She's since made disturbing allegations of physical assault on her and their minor daughter by the scion of the almost hundred-year-old Raymond Group.

 

Mr Singhania didn't agree to speak with the BBC about the allegations.

 

In response to a request for an interview, his spokesperson directed the BBC to his statement which said, "I have chosen not to comment on the reports in media about matters pertaining to my personal life as maintaining the dignity of my family is paramount to me."

 

Wives fill Indian boardroom quotas

Rising crimes against Indian women in five charts

Ms Modi had told Sangeeta Waddhwani, a celebrity journalist and former executive editor of Hello! India magazine, that she'd suffered "grievous injury" including what she claimed was a broken sacrum bone at the hands of her husband, and had had to get help from the family of Mukesh Ambani - Asia's richest man - to get the police on the scene.

 

Three non-cognisable offences - where a warrant is needed for arrest and the court's permission is required for an investigation - have been filed against Mr Singhania at two different police stations in Mumbai.

 

Ms Modi "continues to be restrained from resuming work" because of her physical condition, Ms Waddhwani told the BBC.

 

Mr Singhania has told employees and shareholders in an internal email - which the BBC has seen - that "it is business as usual" at Raymond even in these difficult times.

 

The company's shares have begun to rebound after coming under heavy selling pressure when the dispute first became public. But the saga has thrown up uncomfortable questions about domestic abuse allegations at the highest echelons of Indian society, and potential lapses in corporate governance at the country's biggest family-run conglomerates.

 

Business as usual

In a filing to the exchanges earlier this month, Raymond's independent directors said they were committed to protecting the interest of minority shareholders. They added that disputes between the two promoter directors did not affect the capacity of the chairman and managing director (MD), Gautam Singhania, to manage the affairs of the company. They also said investigations into matrimonial disputes lay "beyond the remit" of the independent directors.

 

But several questions raised by corporate governance and proxy advisory firms such as Institutional Investor Advisory Services (IIAS) in an open letter to Raymond's board remain unanswered. These include the possibility of criminal liability on the company in the light of these events or the ability of Mr Singhania to discharge his role as chairman and MD amid the personal distractions.

 

Concerns have also been raised about whether there are adequate controls in place to ensure that company funds - which Ms Modi has alleged were being used by her husband for personal benefit - are being protected. Raymond has not responded to the BBC's question about this charge.

 

"She has acted as a whistle-blower, so Raymond's audit committee will be mandated to address the issue. They can't hide behind the fact that it is a marital dispute," Hetal Dalal, president of IIAS, told the BBC, saying she was "disappointed" with the company's response.

 

The board has appointed a senior independent legal counsel, Berjis Desai, for advice, but sources have told the BBC that Ms Modi isn't happy with the appointment.

 

While the company's share price decline has been arrested for now - it was down 20% at one point - there are questions about how much of this is because of the exuberance in the broader market vis-a-vis a recovery due to the board's letter.

 

A dispute between promoters is expected to remain a continuing overhang on the business. A split could lead to a number of scenarios playing out that could impact shareholders, experts say, including a change in voting patterns or even ownership.

 

A senior corporate lawyer told the BBC that the matter is unlikely to be resolved soon, given that most of Mr Singhania's net worth lies in his 49% stake in Raymond. This person said it would be difficult for the businessman to preserve his shareholding while also making a large monetary settlement without having to borrow or monetise assets.

 

They should ring-fence the business by immediately "separating themselves" from Mr Singhania, Ms Dalal said, adding that retaining a chairman accused of domestic abuse also raised broader questions about corporate culture within the organisation, which the board needed to address.

 

'Best-kept secret'

"Violence against women is not an aberration per se in some of the richest families in India," Shobhaa De, a prominent writer and social commentator, told the BBC. "This is corporate India's best-kept secret."

 

Ms De says she is cynical about how the affair will conclude, given the advantages powerful people have.

 

"It is easy to silence scrutiny in this country," she said.

 

Promoters - who typically hold a controlling block of shares in many listed entities in India - are known to exert significant influence in the appointment of board members. This has led many to question how truly independent they are, and their ability to express dissent or fulfil governance obligations.

 

Ms De thinks it will be a difficult, exhausting fight.

 

"It remains to be seen how strong Nawaz's negotiating powers are," she says, adding that she thinks "the story of the complete man will remain complete" - a reference to the catchy brand tagline that's defined Raymond since the 1980s.-bbc

 

 

 

 

Threads: Meta's rival to Elon Musk's X launches in EU

Meta's social media app Threads has launched in the European Union, five months after its release in other parts of the world.

 

It debuted to much fanfare as a rival to Elon Musk's X, formerly Twitter.

 

But it was not made available in the EU, which has strict rules around data and big tech.

 

Meta will hope it will drive interest in the platform, which gained more than 100 million users in its first week before those numbers drifted down.

 

Boss Mark Zuckerberg announced the news with a post on Threads, welcoming new users from across Europe.

 

A Meta spokesperson said the platform had undergone "significant improvements" since its launch in other countries in July.

 

A lack of key features, such as a website and search function, had contributed to initial user interest fading.

 

"Starting today, people in the EU can choose to create a Threads profile that is connected to their Instagram account - which means they get the same experience as everyone else around the world - or use Threads without a profile," they said.

 

Just three weeks after its launch, Mr Zuckerberg said Threads had lost half of its users.

 

The release of new features has helped it claw most of them back - but Threads remains less popular than X, and has many fewer users than TikTok, or other Meta services Instagram and Facebook.

 

EU delay

Meta has not officially disclosed why it delayed Threads' launch in the EU, but it is thought to be because of the bloc's strict regulations.

 

A Meta spokesperson told The Verge in July it was down to "upcoming regulatory uncertainty".

 

The EU's Digital Services Act - laws which impose new responsibilities on big tech companies - came into force in August.

 

They are designed to protect users on large social platforms, and include rules on advertising to children and a requirement for firms to be more transparent about their algorithms with regulators.

 

Threads asks permission to access lots of data on your device, including location data, purchases and browsing history.

 

It is not currently known if the app has undergone significant changes to abide by the EU's laws.

 

However, in October Meta announced subscription services would be brought into most of Europe that would remove adverts from all its platforms, which it said would address EU concerns.

 

It came after Meta was fined €390m (£335m) in January for breaking EU data rules around ads.

 

The subscription model is exclusive to people in the EU, European Economic Area and Switzerland, and is not available in the UK.-bbc

 

 

 

 

Driverless car firm Cruise to cut 900 jobs

Cruise, the self-driving vehicle business which is majority owned by General Motors, is to cut 900 jobs.

 

The announcement comes as safety officials investigate the firm after reports of injuries to pedestrians.

 

Cruise pulled all of its US vehicles from testing this autumn after California halted its driverless testing permit.

 

The company's chief executive Kyle Vogt and co-founder Dan Kan have also both resigned in recent weeks.

 

On Thursday, Cruise confirmed the job cuts amounted to 24% of its workforce and were "primarily in commercial operations and related corporate functions".

 

"These changes reflect our decision to focus on more deliberate commercialization plans with safety as our North star," a statement said.

 

The start-up added that it was supporting staff with "strong severance and benefits packages".

 

Last month, General Motors said it would cut costs at Cruise, which lost more than $700m in the third quarter, taking total losses to more than $8bn since 2016, according to news agency Reuters.

 

"GM supports the difficult employment decisions made by Cruise," a GM spokesman said.

 

Driverless cars investigated in US after accidents

Tesla recalls two million cars in US over safety concerns

In October, the California Department of Motor Vehicles ordered Cruise to remove its driverless cars from the state's roads and the National Highway Traffic Safety Administration (NHTSA) announced an investigation into its fleet.

 

The moves came after two accidents involving pedestrians, both which involved people crossing after the cars' traffic lights had turned green.

 

In one incident from August 2023, the self-driving car hit someone at 1.4mph, while in the other incident, from October, the driverless car dragged a woman who had been thrown into its path after getting hit by another car, which was being driven by a person.

 

The October report said the driverless car "braked aggressively" but was not able to stop in time. Both the incidents happened at night.

 

Cruise has previously said its safety record "continues to outperform comparable human drivers".

 

Cruise is not the only driverless car company facing safety questions.

 

Tesla is recalling more than two million cars after the US regulator found its driver assistance system, Autopilot, was partly defective.

 

It follows a two-year investigation into crashes which occurred when the technology was in use.-bbc

 

 

 

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


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.

 


 

 


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