Major International Business Headlines Brief::: 27 January 2023

[Bulls n Bears]

 <https://bullszimbabwe.com/> 

 


 

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments
<https://bullszimbabwe.com/category/blogs/bullish-thoughts/> Bullish
Thoughts        <http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp
<mailto:bulls at bullszimbabwe.com?subject=Unsubscribe> Unsubscribe

 


 

 


Major International Business Headlines Brief::: 27 January 2023 

 


 

 


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

 


 

 


 

ü  737 Max crashes: Boeing in court on fraud charge

ü  Elon Musk denies Twitter use hurts Tesla as sales soar

ü  Royal Mail says strikes have cost it millions

ü  Donald Trump to be allowed back on to Facebook and Instagram

ü  Is UK being left behind in global climate investment battle?

ü  Subscription-based bike hire schemes on a roll

ü  UK car production collapses to lowest for 66 years

ü  Nigeria: UK Cuts Tariffs On Nigerian Exports

ü  Nigeria: Naira Redesign - Nobody Will Be Harassed for Returning Old
Banknotes, Emefiele Assures

ü  Nigeria: REA Creates 1,151 Jobs, Saves 249,193 Tonnes of Carbon Dioxide

ü  Tanzania: Teachers in Rukwa Demand 2bn/ - Unpaid Arrears

ü  Nigeria, Egypt Agree On Joint Electricity Devt

 


 <mailto:info at bulls.co.zw> 

 


 

737 Max crashes: Boeing in court on fraud charge

Aircraft giant Boeing will answer a fraud charge in court later over two
plane crashes which killed 346 people.

 

Both accidents were down to flaws in the flight control systems on the 737
Max aircraft.

 

Boeing was found to have failed to disclose information about the system but
avoided a trial by agreeing to pay $2.5bn (£1.8bn) in fines and
compensation.

 

Relatives of those who died are trying to reopen the settlement.

 

It means that for the first time, the company will be formally charged in
court in relation to the two crashes, and will have to plead guilty or not
guilty.

 

Boeing has previously opposed reopening the agreement with the US Department
of Justice (DOJ), saying to do so would be "unprecedented, unworkable and
inequitable." It declined to comment on the arraignment.

 

Boeing 737 Max aircraft were cleared to fly again in the US in 2020 and the
UK and EU in 2021 after being grounded following the crashes in 2019.

 

Boeing 737 Max: What went wrong?

It is nearly four years since Ethiopian Airlines flight ET302 crashed
minutes after take off from Addis Ababa to Nairobi. 157 people died when it
plunged into farmland outside the Ethiopian capital in March 2019.

 

The accident involved a new design of aircraft - the 737 Max.

 

Just months earlier, an almost identical aircraft operated by the Indonesian
carrier Lion Air had crashed into the Java Sea on what should have been a
routine flight from Jakarta to Pangkal Pinang.

 

189 passengers and crew lost their lives.

 

It later emerged that both accidents were triggered by design flaws, in
particular the use of flight control software known as MCAS.

 

The system was designed to assist pilots familiar with previous generations
of 737, and prevent them from needing costly extra training in order to fly
the new model.

 

But sensor failures caused it to malfunction - and in both cases it forced
the aircraft into a catastrophic dive the pilots were unable to prevent.

 

Investigations in the US revealed that Boeing had not included information
about the MCAS system in pilot manuals or training guidance, and had
deliberately sought to downplay the impact of the system in its
communications with the US regulator, the Federal Aviation Administration.

 

American Airlines flight 718, the first U.S. Boeing 737 MAX commercial
flight since regulators lifted a 20-month grounding in November, takes off
from Miami, Florida, 

 

In January 2021, the US Department of Justice (DoJ) charged Boeing with
fraud. But the company was able to avoid going on trial, by agreeing to pay
$2.5bn in fines and compensation, and promising to tighten up its compliance
procedures.

 

This settlement - known as a deferred prosecution agreement - provoked
intense anger among a number of the relatives of those who died aboard
ET302.

 

They claimed, and continue to claim, that the deal was a "sweetheart
agreement" which was concluded without their knowledge, violated their
rights, and allowed the company to avoid being held fully accountable.

 

The Department of Justice defended its decision, insisting that the
settlement was appropriate, because it could not prove beyond reasonable
doubt there was a direct connection between Boeing's alleged crimes and the
two crashes.

 

Major milestone

The hearing later follows more than a year of legal wrangling in a Texas
court, where the families are attempting to have the agreement reopened.

 

Boeing has been ordered to send an "appropriate person" to appear on its
behalf. It is not clear who this person will be.

 

Meanwhile, relatives of the victims will be allowed to read impact
statements to the court, or have such statements read out on their behalf.

 

There's no doubt that for the families, including those living in the UK,
the arraignment hearing itself is a major milestone.

 

Zipporah Kuria's father, Joseph Wathaika was killed in the crash of ET302 -
and she has been a vocal campaigner for Boeing to be held to account ever
since.

 

She will be in Texas for the hearing, and says her statement will be a
tribute to an "incredible" man who changed many lives.

 

"It feels like we're finally being seen," she said. "It feels like the death
of our loved ones, of 346 people, at least has a level of relevance now."

 

'A cover-up is not justice'

Mark Pegram, whose son Sam was working for a refugee agency when he died on
the same plane, has been unable to travel to Texas. But he said he was very
glad the hearing is taking place.

 

"To us a fine and cover-up is not justice," he said.

 

"It is important a precedent is set to prevent similar loss of innocent
lives, and for Boeing to understand the horrific impact their misconduct has
had on so many families," he added.

 

It is still far from clear whether the legal action will ultimately lead to
the deferred prosecution agreement between Boeing and the DoJ being
reopened.

 

Such a move would be highly unusual. But according to Robert A Clifford, a
Chicago lawyer representing the families in a separate civil action, it
could have far reaching consequences - including action against individuals.

 

"These families want the maximum penalty imposed against Boeing, and they
want any immunity from prosecution that senior officials at Boeing received
to be lifted," he said.-bbc

 

 

 

 

Elon Musk denies Twitter use hurts Tesla as sales soar

Elon Musk has denied that his prolific use of Twitter, the social media
platform he owns, is damaging the electric vehicle maker Tesla.

 

The automotive firm announced sales and profits for the October-to-December
period ahead of expectations.

 

On a call with investors, Mr Musk was asked if his "political influencing"
on Twitter is hurting Tesla's brand.

 

"I think Twitter is actually an incredibly powerful tool for driving demand
for Tesla," Mr Musk said.

 

The billionaire, who is chief executive and product architect of Tesla, said
his 127 million followers on the social media platform "suggests that I'm
reasonably popular".

 

Mr Musk is currently embroiled in a court case where he stands accused of
defrauding investors following a tweet in 2018 stating he was considering
taking Tesla private. The firm's share price spiked before falling back when
a deal failed to materialise.

 

More recently, he provoked a backlash when he tweeted a peace plan to end
the Russia-Ukraine war. One suggestion was for Ukraine to cede control of
Crimea, which Russia annexed in 2014, to the Kremlin.

 

He told investors: "I would really encourage companies out there of all
kinds, automotive or otherwise, to make more use of Twitter and to use their
Twitter accounts in ways that are interesting and informative, entertaining,
and it will help them drive sales just as it has with Tesla."

 

Musk calls disputed Tesla tweet 'right thing' to do

Tesla's share price tumbled by nearly two-thirds last year, amid concerns
that the company was losing its edge, while Mr Musk was increasingly
involved with his drawn-out $44bn (£35.5bn) takeover of Twitter and its
subsequent reorganisation.

 

On Wednesday, Tesla announced that sales for the final quarter of 2022 rose
by 37% to $24.3bn compared to the same period the year before. Revenues had
been expected to rise by $24bn.

 

Profits increased by 59% to $3.7bn.

 

Commenting on the results, Sophie Lund-Yates, lead equity analyst at
Hargreaves Lansdown, said: "Elon Musk's foray into social media leadership
through the Twitter takeover has threatened to unpick a lot of confidence as
investors fretted about Elon's ability to lead both companies."

 

She added that the court case was "another distraction".

 

"The last thing serious investors want is to see their chief executive in a
witness stand. The worst of the damage is done but there's likely to be
little room for error or sentiment roulette for some time," she said.

 

For the whole year, Tesla delivered a record 1.3 million cars to customers,
a rise of 40%.

 

The company recently cut prices on some vehicles such as the Model 3 and the
cheapest Model Y car. It prompted criticism from some people who had bought
those cars at full price last year.

 

Mr Musk acknowledged questions about how the firm will be affected by higher
borrowing costs and a weaker economy.

 

But he said the price cuts are working to bring in buyers, with orders this
month so far outpacing production.

 

"Price really matters," he said. "We think demand will be good despite,
probably, a contraction in the automotive market as a whole."

 

Looking ahead, Mr Musk said that he expected Tesla's share price to recover
over the long-term, though warned that he anticipated a "pretty difficult
recession" in 2023 which could lead to setbacks.

 

"There's going to be bumps along the way and we'll probably have a pretty
difficult recession this year, probably," he said. "I hope not, but
probably."

 

Tesla's results were released at a critical time for the company.

 

Sales of electric vehicles rose last year, bucking a wider decline in the
global car market.

 

But Tesla's lead has been challenged by increased competition from
traditional motor manufacturing giants such as Ford and General Motors, as
well as newer entrants to the market like Rivian and Lucid in the US and
China's BYD and Nio.

 

Bar chart showing Tesla's share of the Battery Electric Vehicles market
declining from 22.3% in 2020 to 17.4% in 2022

Ms Lund-Yates said: "It's incredibly telling that Tesla is moving to make
its vehicles more affordable.

 

"This enables the group to entice more customers despite inflation fears,
and tempts them away from the competition who are largely at a lower
price-point."

 

Executives said that in the months ahead Tesla would be focused on
increasing production as quickly as possible, while bringing down costs.

 

They said they believed its operating margins would remain among the highest
in the industry - though warned they would shrink because of the price cuts
- and that the firm's much-anticipated cyber-truck was on track to start
production later this year.-bbc

 

 

 

 

 

Royal Mail says strikes have cost it millions

The owner of Royal Mail says the recent wave of strikes at the postal firm
have cost it £200m so far.

 

The row with the Communication Workers Union over pay and conditions has led
to 18 days of walkouts since August.

 

Royal Mail also said the number of voluntary redundancies it needed to hit
job cut targets would be much lower than first expected.

k

The number would be "significantly" less than the 5,000-6,000 it forecast
before, partly due to staff turnover.

 

The dispute with the Communication Workers Union (CWU) has been going on
since the summer, and seven days of strikes in December led Royal Mail to
bring forward its last-suggested posting dates for Christmas mail.

 

However, the company said that up to 12,500 CWU employees had returned to
work on strike days. About 115,000 CWU workers have been involved in the
walkouts.

 

It also said that "robust contingency planning" meant it delivered more than
110 million parcels and 600 million letters in December.

 

Royal Mail owner International Distributions Services said the letter and
parcels business had lost £295m in the nine months to the end of December.

 

When are the next strikes and what pay do workers want?

Royal Mail overseas parcels ban 'costing me hundreds'

Revenues in the nine-month period fell 12.8% from the year before. This was
partly down to the strike action but also caused by a continued fall in the
number of letters being sent and "weaker retail trends".

 

The dispute with the CWU is continuing, and the union began its third ballot
for industrial action this week.

 

Like other current industrial action, such as the disputes in the railways
and the NHS, pay is a key issue, with workers seeking wage rises as the cost
of living soars.

 

Inflation - the rate at which prices rise - is currently at the highest
level for about 40 years.

 

Royal Mail has offered a pay deal it says is worth up to 9% over 18 months -
but the CWU wants more given the rate of inflation

 

The union also objects to proposed changes to working conditions, such as
ending a number of allowances and the introduction of compulsory Sunday
working.

 

As well as the dispute with the CWU, Royal Mail is also trying to tackle
problems caused by a cyber-attack.

 

The attack meant the firm was initially unable to send letters and parcels
overseas

 

While it is now accepting new letters for overseas, it has been still
advising people not to send new parcels internationally for now, something
that has been hitting many small businesses.-bbc

 

 

 

 

Donald Trump to be allowed back on to Facebook and Instagram

Donald Trump will be allowed back on to Facebook and Instagram, after Meta
announced it would be ending its two-year suspension of his accounts.

 

The ban will end "in the coming weeks", the social media giant said.

 

In a statement, Nick Clegg, Meta's president of global affairs, said the
public "should be able to hear what their politicians are saying".

 

The then-US president was indefinitely suspended from Facebook and Instagram
after the Capitol riots in 2021.

 

Meta had acted following Mr Trump's "praise for people engaged in violence
at the Capitol", Mr Clegg said.

 

"The suspension was an extraordinary decision taken in extraordinary
circumstances," he added.

 

He said a review had now found that Mr Trump's accounts no longer
represented a serious risk to public safety.

 

But because of Mr Trump's past "violations", he would now face heightened
penalties for any future offences.

 

Meta's Oversight Board - a body it set up to review moderation rulings -
said that the decision to reinstate Mr Trump on its platforms "sat with Meta
alone - the board did not have a role in the decision".

 

The board had previously told Meta that Mr Trump's suspension needed to be
revisited.

 

It urged Meta to be transparent and to provide additional information about
new policies covering public figures so that it could review their
implementation.

 

Truth Social

Republicans have been pressing for Mr Trump to be allowed back on Facebook
as he prepares to run for the US presidency again next year.

 

Mr Trump posted on his own social media company, Truth Social, in response
on Wednesday, saying that Facebook had "lost billions" after banning "your
favourite president, me".

 

"Such a thing should never again happen to a sitting president, or anybody
else who is not deserving of retribution!" he wrote.

 

Donald Trump now has a decision to make.

 

Truth Social, a social media platform he set up in 2021, has vastly fewer
users than Facebook, which has three billion. 

 

Truth Social may have as many as five million accounts - though it's likely
it has far fewer active users.

 

However, Mr Trump has an exclusivity agreement with Truth Social - that
means he is legally required to post first on the platform - six hours
before any other. 

 

It means if he posts on Facebook or Twitter -  there is a chance he could
get sued. 

 

Analysts also warn that if Mr Trump were to stop using Truth Social, or post
content elsewhere, the platform would struggle to survive. 

 

He could simply ignore that exclusivity agreement - and start posting
content straight away. 

 

However, that could open him up to legal problems. 

 

What is also possible is that he simply waits until June, when the agreement
times out. 

 

Or, he could take the decision never to go back to platforms that he has
criticised consistently. 

 

However, if he is going to have a tilt at the White House, being on Facebook
- the world's biggest social media platform - would make a lot of sense. 

 

Whatever happens next, the ball is firmly in Mr Trump's court now. 

 

If he does decide to come back, though, he will have to follow Meta's rules.
The company has left the door open for another suspension if he flouts them.


 

It means Mr Tump will have to hold his tongue (to a certain extent) on
Facebook, in a way that he currently does not have to on Truth Social. 

 

2px presentational grey line

News of Mr Trump's reinstatement was quickly criticised by Democrats and
some activist organisations who expressed concern that he could again use
the platforms to repeat false claims that he won the 2020 election.

 

"Trump incited an insurrection," California Democratic representative Adam
Schiff wrote on Twitter. "Giving him back access to a social media platform
to spread his lies and demagoguery is dangerous."

 

Derrick Johnson, the president of the NAACP civil rights organisation, told
the Associated Press that he saw the move as a "grave mistake" that was a "a
prime example of putting profits above people's safety".

 

"It's quite astonishing that one can spew hatred, fuel conspiracies, and
incite a violent insurrection at our nation's Capitol building, and Mark
Zuckerberg still believes that is not enough to remove someone from his
platforms," he said.

 

But the American Civil Liberties Union, a not-for-profit organisation that
defends civil rights in the US, tweeted that the decision was the "right
call".

 

 

The BBC is not responsible for the content of external sites.

View original tweet on Twitter

Twitter had also banned the former president following the 6 January 2021 US
Capitol riot, saying he had broken its rules on the glorification of
violence.

 

But in November, its new owner Elon Musk said Mr Trump's account ban had
been lifted, after running a poll in which users narrowly backed the move.

 

Mr Trump has not yet returned to Twitter, having earlier said: "I don't see
any reason for it."-bbc

 

 

 

 

Is UK being left behind in global climate investment battle?

When the US Congress passed Joe Biden's Inflation Reduction Act last summer,
the bill seemed built on good intentions. Designed to boost America's green
economy and tackle climate change, the act included billions of dollars of
subsidies for the purchase of electric cars and other eco-friendly products.

 

But a provision that those subsidies will only be available to consumers who
buy American-made products has enraged many European nations. They see it as
a thinly-disguised attempt to grab a share of Europe's high tech
manufacturing sector, including Britain's, by luring European companies to
relocate factories to the US.

 

Welcome to the global race for dominance of green technology, where the
future of the planet and the global economy are entwined in a potentially
risky geopolitical game.

 

It is the US and the EU at loggerheads, but some East Asian nations are
registering their displeasure too, and some in British business are
wondering exactly where the UK stands in this growing row.

 

While most countries subsidise green technology, it was Joe Biden's specific
targeting of funds solely for North American-made cars that spooked many
allies. People who buy passenger vehicles assembled in America now qualify
for a tax credit of up to $7,500 (£6,000) .

 

Buy European?

Many European firms were on the list of investors in US car production read
out by Joe Biden when he unveiled the Inflation Reduction Act. But it isn't
just cars that will be affected.

 

Svein Tore Holsether, the boss of Norwegian fertiliser manufacturer Yara,
told me: "The US is putting in place a system that provides rewards for
sequestering carbon and also for switching to green production at a level
that really incentivises and drives investment.

 

Biden green subsidies could harm trade, says Shapps

Putin is weaponising food, says fertiliser boss

The green trade row dividing the Davos elite

"Questions are being asked in many [European] companies right now. Where are
the incentives? Businesses are shutting down. New investments are being made
in the US."

 

Meanwhile, the French finance minister Bruno Le Maire told me: "We shouldn't
underestimate the impact of the Inflation Reduction Act... [French President
Emmanuel] Macron has been very clear... First of all, we want to get some
concessions from the US administration. We are friends and allies so we want
to get some exemptions."

 

Mr Le Maire said he would go to Washington with his German counterpart soon
to raise these concerns. In fact, German Chancellor Olaf Scholz has already
held direct discussions with top US senators and members of Congress over
the Inflation Reduction Act.

 

Mr Le Maire also wouldn't rule out the idea of Europe launching its own "Buy
European" subsidies for green tech in response.

 

"Everyone understands that at some point in strategic sectors like green
industry, there is a need to invest more and to have a kind of European
buyback."

 

Leo Varadkar, leader of Ireland, traditionally the closest US ally in
Europe, was more direct. He said his country was "not happy" about the
Inflation Reduction Act.

 

"There will have to be a response from the European Union and that will
almost certainly involve providing state aid and subsidies to European
businesses. The difficulty with that is you end up in a subsidy war, a
subsidy competition," he said.

 

What is clear is that the EU is about to respond to the massive American
plan, despite concerns among members about sparking a trade war. And the
White House is aware of the issues, having set up a US-EU task force to
consider them.

 

Where does the UK stand?

Where the UK stands in all of this is less certain.

 

While the BBC understands that both the Business and Trade Secretaries have
raised their concerns with their US counterparts, their precise demands are
unclear. The Business Secretary Grant Shapps says the UK doesn't need a
US-style package of green incentives, because the UK is already "ahead of
the game".

 

"Actually we've done our investment to get renewable energy, which is what
the US Inflation Reduction Act is all about. We've done it a decade ago," he
told me.

 

"Which is why we don't just have the world's largest offshore windfarm,
we've got the second largest and the third, the fourth and we've got another
coming along that's bigger still."

 

He's also confident the UK won't be overlooked in what may end up being an
EU-US carve-up on this issue.

 

He said he had also spoken to his opposite number in the Biden ministry,
Climate Envoy John Kerry, and Mr Shapps says much of what the US is doing is
welcome. "The bits that actually could affect us, the protectionist bit,
they're the edges that need to come off [this new bill]."

 

What does the US think?

The current line from leaders that have discussed the Inflation Reduction
Act with their US counterparts is that this was all an accident, and in
drafting this legislation the US "just forgot" about Europe and committed an
economic "half aggression".

 

The reassurance has been that this was all aimed at China, not Europe. But
there is no doubt that the heads of major European manufacturers are being
turned. And while the needs of net zero do tend towards more of Europe's
manufacturing being done in Europe, and likewise for North America, there is
a red line that shouldn't be crossed, according to one European leader.

 

If European export production, investment and jobs start to migrate over the
Atlantic, things could get sticky, they told me.

 

There's also concern this won't end with "green technologies". The supply
chain bottlenecks sparked by the pandemic have made countries rethink their
reliance on East Asia, and not just China, for manufactured goods.

 

Spades are going into the ground across the EU and the US on new facilities
for the production of microchips, with major western tech manufacturers
attracting huge subsidies. Europe calls this "strategic autonomy", the
Americans call it "friend shoring" or the restoring of supply chains to
friendly nations.

 

It signals the redirection of massive flows of investment away from their
existing homes at a time when many industries are undergoing huge
transformative change. This process could change the landscape of world
manufacturing for a generation.

 

Some in British industry fear an EU-US carve-up not just over electric cars,
but microchips and other critical technologies. And it is clear that the
"globe" which "global Britain" sought to engage after Brexit has changed
significantly, raising quite fundamental strategic questions about Britain's
future in the midst of it all.-bbc

 

 

 

 

Subscription-based bike hire schemes on a roll

Lianne Fonseca says her life has been "transformed" by the electric bike she
started using during the pandemic.

 

"It's game changing," claims the 31-year-old product manager who lives in
Toronto, Canada.

 

"I wasn't a cyclist whatsoever before. Toronto isn't really a bike-friendly
city, although it's getting better.

 

"But the pandemic meant it was empty of cars, and so I started biking a
little. I now e-bike to see my friends, to do my grocery shopping, and it
enables me to arrive at the office non-sweaty."

 

Surprisingly, the e-bike Ms Fonseca is referring to isn't actually her own.
Instead she is one of a growing number of people on both sides of the
Atlantic renting their bikes long-term through a subscription model.

 

Ms Fonseca rents hers for 149 Canadian dollars ($112; £91) a month through
an e-bike rental company called Zygg. For her this generally means from
March to October, pressing pause to avoid the harsh Canadian winter season
when temperatures in Toronto can fall to below -30C.

 

Still, why rent? "It's really expensive to buy an e-bike," she responds.
"They can be worth a few thousand dollars, and I don't have the confidence
to select which one to buy. And I'm not confident I could fix it if it went
wrong."

 

Instead, if anything stops working on her rented e-bike then the hire firm
repairs it.

 

Over the past decade or so, we've seen a boom in short-term bike hire
schemes as a way to navigate cities. First came docked bike systems, such as
London's Santander Cycles or "Boris bike" scheme.

 

These require you to remove a bike from a docking station, and then return
it to one.

 

They were subsequently followed by bike, and then e-bike and e-scooter hire
schemes that did away with the need for the stations. Instead you use an app
to locate where the nearest bikes and scooters have been left at random
spots on the nearby pavements by the previous users.

 

Such has been the global growth of these "dockless" systems that they have
long been criticised as a form of street litter.

 

Putting aside this controversy, the business model of these street-side
dockless and docked schemes is that you hire the bike or scooter for a
single journey, the half an hour or so that you need it for.

 

By contrast, the new trend is that you hire a bike or e-bike for the long
term, by paying a monthly subscription fee.

 

Zygg chief executive Kevin McLaughlin launched the business in Toronto in
2020, followed by Vancouver last year. He now hopes to expand to other
Canadian cities and across the US.

 

In addition to serving members of the public, the firm also rents out the
e-bikes to couriers and food delivery companies.

 

"The idea is to take an expensive asset worth around C$4,000 and give that
to someone for about C$150 a month, and we'll take care of all the hassle,"
says Mr McLaughlin.

 

"We're trying to provide a way to move forward when it comes to climate
change, and traffic safety, and urban transport. It's more environmentally
beneficial if more people use bikes instead of cars."

 

In London, Jean-Michel Chalayer hires a bike long-term from Buzzbike. The
36-year-old uses it to pedal all across the capital, from his home to his
office, to meetings in the City, and to his weekly football games.

 

Mr Chalayer estimates that he cycles up to 50km (31 miles) a week. The
founder of mobile beauty app LeSalon pays for it via the UK-wide Cycle to
Work scheme, whereby £20 is deducted from his monthly pay packet.

 

Jean-Michel Chalayer says hiring a bike means he doesn't have to worry about
it being stolen or doing the repairs himself

"My other bike was second-hand and I got fed up of spending loads of money
on maintenance all the time," says Mr Chalayer. "Plus I was never confident
it wouldn't be stolen.

 

"This way I get a really good bike and I never stress too much about leaving
it anywhere. If I have a problem with it, then I just message them and they
come around and fix it when it's convenient for me."

 

One of the pioneers of long-term bike subscription is Dutch company
Swapfiets, which means "swap bike". Launched in 2014, it now has 280,000
active users across 60 European cities including Amsterdam, Vienna and
London.

 

Rentals start from £16.90 a month for a one-speed, standard bike, and from
£59.90 for an e-bike, which now accounts for about 15% of its subscriptions.

 

"Sustainability is an angle now, but when we started what we really wanted
to do was solve the problem of bike ownership, which can create hassle due
to the need for bike repairs if it's not maintained," says Swapfiets'
co-founder Richard Burger.

 

"If we can't repair the bike onsite, we'll give you another one to get you
on your way again."

 

Who is their target audience? "We do see a lot of expats that just want
access quick to a bike, and then drop it back when no longer needed six to
12 months later," says Mr Burger. "But we also have young professional
students who hire for three or four years."

 

It's not just adults who can join in the long-term bike rental trend.
London-based Bike Club is aimed at children aged from four to 12, and has
5,500 active members across the UK and Germany, where it recently launched.

 

"We realised that a kid's subscription model made sense as they grow
physically and need to have lots of different bikes," says co-founder
Alexandra Rico-Lloyd.

 

"When a family no longer needs a bike, they send it back. Then another
family will get use of it. As it's serviced fully each time, it extends the
lifespan of that bike."

 

Bike Club offers 100 different styles of bike, which cost between £5 to £25
a month to rent.

 

John Parkin, professor of transport engineering at the University of the
West of England, says the bike-docking hire schemes helped enable the
long-term subscription businesses to take off. This is because more people
got used both to cycling and to using a bike that they didn't own.

 

However, Prof Parkin, who is also deputy director of the university's Centre
for Transport and Society, says a major challenge for the companies involved
is the sheer capital expenditure of buying all the bikes in the first place.
"It's massive capital and it's burning capital," he says.

 

"I'm not sure where the profitability lies, as maintenance and moving them
across cities is a massive cost, so keeping a lid on costs is probably a
challenge for such companies."

 

Zygg's Mr McLaughlin agrees it is difficult. "It's a challenging time to
grow a heavy assets business and raise capital," he says.

 

As Zygg and others in the sector are small, private firms they are not
obliged to report their sales and profit figures.

 

Still, the environmental benefits are huge. Prof Parkin adds: "Any way of
making cycling and cities more efficient rather than people moving round in
big vehicles so they can get to their final destination easier is good
news."

 

Back in Toronto, Ms Fonseca is looking forward to hiring her next bike once
the Canadian winter is out of the way.

 

"It's so much more convenient than going by car, and it feels nice riding
through leafy neighbourhoods."-bbc

 

 

 

 

UK car production collapses to lowest for 66 years

The number of new cars made in the UK has sunk to its lowest level for 66
years as firms warn the country is not doing enough to attract
manufacturers.

 

The 10% drop is the worst performance since 1956, according to the Society
of Motor Manufacturers and Traders.

 

A struggle to get parts due to Covid and a semiconductor shortage have hit
the industry worldwide, but the UK has also been hit by factory closures.

 

Car firms warn the UK has not got a strategy to attract manufacturers.

 

In response, the government said it was "determined" to ensure the country
remains a top global location for car manufacturing.

 

In total, the UK produced 775,014 cars last year. down from 1.3 million
before the pandemic, with production dropping since the UK voted to leave
the European Union in 2016.

 

Manufacturers hope the car industry will start to accelerate again, but say
getting to pre-pandemic levels would require major investment and new car
makers to come to the UK.

 

They warn that the UK is lagging behind, particularly on offering state aid
to manufacturers.

 

In the US, the government is planning to offer billions in subsidies to car
makers who create electric vehicle supply chains in the US.

 

Mike Hawes, chief executive of industry body the SMMT, warns this will
"hoover up" a lot of international investment, hitting the UK industry
further.

 

The European Union is considering retaliating by either relaxing state aid
rules or by extending Covid recovery or green technology-boosting
programmes.

 

One of the benefits of Brexit was meant to be escaping from the straitjacket
of EU state aid rules which limited the amount of support governments could
give to favoured industries.

 

Mr Hawes conceded the UK could be in the unenviable position of offering
less support to crucial industries than before it left the EU.

 

Speaking to the BBC's Today programme, he said the UK needed "something that
demonstrates that the UK is open for business and open for these
investments".

 

Number of cars made in UK since 2012

The production figures were also affected by the closure of Honda's factory
in Swindon in July 2021 and the fact that Vauxhall Astras have not been made
at Ellesmere Port since April 2022.

 

Mr Hawes said the numbers reflected how "tough" 2022 was for UK car
manufacturing, although the country had still made more electric vehicles
than ever before, with almost a third now fully-electric or hybrid.

 

He warned the global car industry had already begun investing in electric
vehicles and batteries and the UK only had "a few years" to act.

 

"We need to be on the front foot making sure we have a range of measures
that attract investment," Mr Hawes said.

 

He called for a strategy to accelerate battery production and the shift to
electric vehicles, adding that the UK was well placed to succeed given its
skilled workforce and engineering expertise.

 

The firm had planned to build a giant factory to make electric car batteries
in Cambois, near Blyth in Northumberland, but the project ran out of money.

 

The UK currently only has one Chinese-owned battery plant next to the Nissan
factory in Sunderland, while 35 plants are planned or already under
construction in the EU.

 

A government spokesperson said: "We are determined to ensure the UK remains
one of the best locations in the world for automotive manufacturing.

 

"Our success is evidenced by the £1bn investment in Sunderland in 2021, and
we are building on this through a major investment programme to electrify
our supply chain and create jobs."-bbc

 

 

 

 

Nigeria: UK Cuts Tariffs On Nigerian Exports

The UK government on Monday said it had cut tariffs and extended duty-free
trade in goods exported from Nigeria

 

Mr Ben Llewellyn-Jones, Deputy British High Commissioner to Nigeria said
this at the launch of the Developing Countries Trading Scheme (DCTS) which
took place at Eko Hotel and Suites, Victoria Island, Lagos.

 

Llewellyn-Jones said the scheme would help to boost Nigeria's non-oil
exports in line with the Federal Government's wider trade policy objectives
and take off in April 2023.

 

He noted that the scheme would reduce import costs by over £750 million per
year, thereby reducing prices, and increasing the choice of UK consumers and
businesses as well.

 

" The Uk Government has reduced the tariffs of 90 per cent of goods that
Nigeria would export to our country and has also provided a preferential
trading scheme for range of other exports that the country might have.

 

 

" We have reached out to small and large businesses in different parts of
the country and this is intended to help exporters and other people in the
trading business to make the United Kingdom an export destination.

 

"This would also serve as an opportunity to grow the non oil and gas sector
in Nigeria and create jobs in the country, and most importantly, we are
reaching out to people at the grassroot level so they can know what we are
doing.

 

"The DCTS is much more generous and simpler than the existing Generalised
Scheme of Preferences (GSP)," he said.

 

Llewellyn-Jones revealed that the trade volume between both countries for
the year 2022 was 2.2 billion pounds, noting that the oil and gas sector
accounted for the majority of the trade.

 

He stressed on the importance of expanding the market and diversifying into
other sectors including exportation.

 

 

"We have to change focus to non-oil sector but this takes time, but we are
working with experts from Nigeria Export Promotion Council and the Federal
Government to grow the economy through expanding of its export.

 

"The key challenge for exporters is finding key partners in the UK to sell
their products but we are working on ensuring that we link exporters with
potential buyers so as to ensure there is enough demand and supply," he
said.

 

Mr Simon Calvert, Senior Commercial Agriculture Adviser, Foreign
Commonwealth and Development Office (FCDO) noted that Nigeria does not
require international conventions to enjoy the benefits under the DCTS.

 

He added that the Uk government would help exporters to access finances
through its financial institutions.

 

He noted that by making the rules of origin more generous, neighbourng
countries can easily make use of components from Nigeria in their Duty Free
Exports to the UK

 

 

" Cutting tariffs for Nigeria would ensure that 3000 new products are duty
free for the first time as the average existing tariff on these goods is
seven per cent, meaning these changes make Nigerian exports more competitive
in the UK.

 

" Many tariff reductions are on value added goods such as processed sesame
oil, cotton clothing and cocoa butter and paste and complement existing duty
free trade on raw products.

 

" We have made it simpler for Nigeria to get and retain these enhanced
tariffs by removing the need for Nigeria to ratify and implement certain
international conventions," he said.

 

Damola Oladosu, an official with Boston Consulting Group, said that
opportunities in the exporting market remained underutilised.

 

She said that the country could grow its exports to the UK by increasing
production on certain products like cocoa, cotton, fertilizer, cashew
amongst others.

 

-Vanguard.\

 

 

 

Nigeria: Naira Redesign - Nobody Will Be Harassed for Returning Old
Banknotes, Emefiele Assures

Abuja — The Governor of the Central Bank of Nigeria (CBN), Mr. Godwin
Emefiele, yesterday said no one will be harassed by the anti-graft agencies
for depositing the old naira notes following the recent currency redesign.

 

The old naira notes will cease to be legal tender after January 31, 2023.

 

Addressing journalists after the two-day meeting of the Monetary Policy
Committee (MPC) in Abuja, the CBN governor said he had pleaded with the
Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt
Practices and Other Related Offences Commission (ICPC) to allow people to
deposit the old naira notes in their banks without harassment.

 

Emefiele said, "By last week, we had seen close to about N1.3 trillion to
N1.5 trillion in. We are hoping that as we get into this week, we would move
closer to N2 trillion. If we get N2 trillion in and those who decide to keep
it in vaults decide to keep it in their homes, I am not going to force them
to bring it out because they've been waiting. And I don't know what else I
am going to do to beg them to bring it.

 

 

"But if they don't bring it, by January 31, it will be useless in their
hands. So, I can only just beg them to please, bring it. We will take it on
or before January 31st. "

 

He said, "Bring it, nobody is going to harass you. If you are afraid of
being harassed, trust me, I have begged EFCC, and we have begged ICPC that
they should please, allow us to do our work so that people will bring money
in.

 

So, we are begging them to bring it in and nothing will happen to you on my
honour."

 

Emefiele said, "Before we came on with the new naira design, we said that in
2015, currency in circulation was N1.42 trillion. In 2022, currency in
circulation had grown to N3.23 trillion more than double.

 

Out of the N3.2 trillion, about N1.7 trillion was outside the vaults of
banks. This has made the efficacy of monetary policy to be difficult for the
monetary policy committees because what you would have expected is that when
currency is issued, it will circulate and after some time, the old and
worn-out ones would be returned back to CBN.

 

"So, if the old and worn-out notes return back to CBN, there is no reason
currency in circulation will grow from N1.4 trillion to N3.23 trillion in
seven years."

 

He said, "People are hoarding it; people are keeping vaults in their homes
and we cannot allow them to become banks in their homes. They don't have a
license to build bank vaults in their homes."

 

-This Day.

 

 

 

 

Nigeria: REA Creates 1,151 Jobs, Saves 249,193 Tonnes of Carbon Dioxide

Kano — The Chairman of Rural Electrification Agency (REA), Federal Ministry
of Power, Danlami Mohammed Kurfi, has revealed that the agency's Nigeria
Electrification Project (NEP) has created 1,151 jobs and saved 249,193
tonnes of carbon dioxide.

 

Kurfi made the disclosure in Kano Wednesday during a briefing on the
implementation level of the NEP.

 

He explained that electricity has been provided for 5 million Nigerians
through 1.022 connections with at least 52MW of renewable electricity
generated in the off-grid sphere across the 36 states and the Federal
Capital Territory (FCT).

 

 

According to him, "The NEP has five components comprising $213 million for a
solar hybrid mini-grid project, $75 million for standalone Solar Home
Systems (SHS), $250 million for the Energising Education Programme (EEP) for
15 universities and two teaching hospitals.

 

"The two others are $20 million for Energy Efficient Equipment to fund
appliances that can generate funds like popcorn making machines; and $37
million for technical assistance and capacity building

 

"Analysis of this shows it has deployed 995,396 Solar Home System (SHS), 67
mini-grid projects, 26 containers of solar energy pack for hospitals, while
REA said it received 569 applications from solar power developers it signed
the grant agreement with 267 developers, and seven others for the energizing
education power contract projects in seven universities and a teaching
hospital"

 

On his part, the Managing Director, Rural Electrification Agency (REA),
Federal Ministry of Power, Mr. Ahmad Salihijo Ahmad, lauded the World Bank
and the African Development Bank (AfDB) for granting the agency $550 million
(N241.8 billion) funds.

 

"The funds were used to provide 52 megawatts of electricity to five million
Nigerians through 1,022 connections," he said

 

Ahmad noted that out of the $550 million NEP fund, REA has disbursed $64.8
million to contractors with over $300 million commitment made for
procurement of equipment for the contractors.

 

-This Day.

 

 

 

Tanzania: Teachers in Rukwa Demand 2bn/ - Unpaid Arrears

Sumbawanga — TEACHERS in Rukwa region are pushing for payment of their
arrears amounting to more than 2bn/-.

 

According Tanzania Teachers Union (TTU) in the region, the local government
administrations in the region owe public school teachers more than 2bn/-,
being unpaid claims accumulated from January to October last year

 

The unpaid claims are transfer, salaries, treatment, leaves and lessons as
well as claims of retired teachers

 

Rukwa Region Acting TTU Chairman, Mr Mrisho Kikonda revealed that while
briefing journalist yesterday here in the municipality.

 

 

"Such unpaid claims are one of the reasons that are demoralizing many
teachers who subsequently fail to deliver their teaching duties positively
at their working places," added Mr Kikonda.

 

Equally Mr Kikonda said that though the government is committed to improving
teachers' welfare, it should also resolve all challenges facing them,
including paying their claims on time.

 

"It is obvious that teachers have been demoralized when their claims are not
paid on time ... but I'm appealing to them that they should continue to work
hard and responsibly as TTU continues to remind the government on the
importance of paying teachers claims on time," he said, as he asked the
government to put clear the actual claims of teachers salary increment

 

"All teachers in the region have not been paid salary increments," he noted.

 

TTU Sumbawanga District Secretary, Mr Peter Simwanza said it is difficult to
know the actual claims of teachers in Sumbawanga District Council, because
the council that is the employer is yet to quantify the actual claims .

 

However, in December last year the government paid a total of 117.6bn/- to
clear salary and non-salary arrears of 88,297 teachers in efforts to improve
the professionals' welfare.

 

Opening the TTU Annual General Meeting (AGM) held in Dodoma, Vice-President,
Dr Philip Mpango, said the government is committed to improving teachers'
welfare.

 

He assured that the government will resolve all the challenges facing
teachers including concerns raised in relation to salary increment and
promotions.

 

Dr Mpango noted that in the past two years the government granted
promotions, and paid huge sum of money for teachers' salary arrears.

 

According to the VP, in the past two years, the government promoted 161, 438
teachers while 15,160 were promoted and transferred to different positions
after advancing their academic qualifications.

 

"I am aware that the exercise of clearing the debts and effecting promotions
is continuous. I call upon you to continue being calm and have trust on your
government. The government has already cleared arrears of 88,297 teachers
worth 117.7bn/- ," he said.

 

The VP directed all directors in local government authorities to make sure
that they complete all procedures of clearing salary and non-salary arrears
for teachers as soon as possible.

 

-Daily News.

 

 

 

 

Nigeria, Egypt Agree On Joint Electricity Devt

Nigeria and Egypt have signed a Memorandum of Understanding (MoU) to enhance
bilateral cooperation in the field of electricity and renewable energy.

 

The Egyptian minister of Electricity, Mohamed Shaker and his Nigerian
counterpart, Abubakar D.Aliyu signed the document, according to a statement
by the Egyptian ministry on January 24th.

 

Through the MoU, the two countries will provide technical support for the
electricity generation sector and the development of electricity
transmission and distribution networks, and the transition to smart grid
systems.

 

 

This is in addition to promoting new and renewable energy systems in the
electricity sector.

 

Nigeria is the most populous country and largest economy on the African
continent and home to one of the fastest-growing populations globally, which
has led to a rapidly increasing demand for energy that will be key to
unlocking further economic development.

 

This presents a substantial opportunity to develop the rich natural
renewable energy resources of the country and unlock low-carbon growth.

 

LEADERSHIP reports that, recently, the International Renewable Energy
Agency(IRENA) developed a Renewable Energy Roadmap for Nigeria in
collaboration with the Energy Commission of Nigeria(ECN) and analyses the
additional renewable energy deployment potential up to the year 2050, with
an additional 2030 focus to aid shorter-term policy development.

 

The study encompasses all key sectors of the Nigerian energy system to
provide additional context for energy policy discussions on how increased
ambition in terms of renewable energy - beyond current government policy and
targets - can be realised.

 

 

Renewable energy can help Nigeria not only meet its energy needs, but also
power sustainable economic growth and create jobs while achieving global
climate and sustainable development objectives.

 

"By using its abundant, untapped renewables, Nigeria can provide sustainable
energy for all its citizens in a cost-effective manner. Nigeria has a unique
opportunity to develop a sustainable energy system based on renewables that
support socioeconomic recovery and development, while addressing climate
challenges and accomplishing energy security," IRENA's director-general,
Francesco La Camera said.

 

Nigeria's minister of Science, Technology and Innovation, Dr. Adeleke
Olorunimbe Mamora, added that: "the highly distributed institutional
structure of the energy sector in Nigeria means that coordination of
policies will be essential to unlocking integrated energy transition
planning and ensuring its success.

 

"A cross cutting agency or body tasked with doing so would be helpful in
building consensus and developing a coherent plan which in turn would allow
for the scaling up of renewable energy to meet the needs across the Nigerian
energy sector."

 

The share of primary energy requirements met with renewable energy can reach
47 per cent by 2030 and 57 per cent by 2050, according to IRENA's report.

 

Electrification will play a significant role in achieving higher renewable
energy shares with electricity in final energy use nearly doubling by 2050
even as investment in renewables will be more cost-effective than the
conventional pathway, the report said.

 

IRENA's Energy Transition Scenario has lower investment costs than planned
policies, $1.22 trillion compared to $1.24 trillion respectively. This
corresponds to $35 billion versus $36 billion per year respectively.

 

- Leadership.

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> bulls at bullszimbabwe.com  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Blog:
<https://bullszimbabwe.com/category/blogs/bullish-thoughts/>
www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


Axia 

EGM to approve the delisting of Axia from the ZSE and listing on VFEX

virtual

February 2 –  (9am)

 


 

Robert Mugabe National Youth Day

 

February 21

 


Cafca 

AGM

virtual 

February 23  - (12pm)

 


Ariston 

AGM

Centenary Room, Royal Harare Golf Club

February 24 - 3:30pm

 


 

Good Friday

 

April 7

 


 

Easter Saturday

 

April 8

 


 

Easter Sunday

 

April 9

 


 

Easter Monday

 

April 10

 


 

Independence Day

 

April 18

 


 

Workers’ Day

 

May 1

 


 

Africa Day

 

May 25

 


 

 

 

 

 


Companies under Cautionary

 

 

 


CBZH

TSL

Fidelity

 


Willdale

FMHL

ZBFH

 


GetBucks

Zimre

Seed Co

 


 

 

 

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


(c) 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

 


 

 

 

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230127/7faa5e10/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230127/7faa5e10/attachment-0002.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 29047 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230127/7faa5e10/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29258 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230127/7faa5e10/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230127/7faa5e10/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29361 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230127/7faa5e10/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65574 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230127/7faa5e10/attachment-0001.obj>