Major International Business Headlines Brief::: 31 January 2023

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Major International Business Headlines Brief::: 31 January 2023 

 


 

 


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

 


 

 


 

ü  UK expected to be only major country to shrink in 2023 - IMF

ü  Tech War: Biden moves to halt US exports to Huawei, reports say

ü  What impact has Brexit had on the UK economy?

ü  Green projects are boosting UK growth - CBI report

ü  Shoppers turn to own-label lines to save money

ü  Suffolk's Parravani's Ice Cream celebrates 125th anniversary

ü  JD Sports says 10 million customers hit by cyber-attack

ü  Extraction from Scotland's only gold mine ramped up

ü  Steel factory evening shutdown to stop power cuts

ü  Tanzania: No Cause for Alarm, State Tells Foreign Mission

ü  Nigeria: DSS Intercepts Bankers, Syndicates Selling New Naira Notes

ü  Nigeria: Govt Bonds Tumble Following Moody's Rating Downgrade

ü  Nigeria: Inflation - LCCI Tasks Govt, CBN On Support for Agriculture,
Manufacturing

ü  Nigeria: High Energy Cost Takes Toll As Diesel Prices Soar 182.6 Percent
in One Year

 


 <mailto:info at bulls.co.zw> 

 


 

UK expected to be only major country to shrink in 2023 - IMF

The UK economy will shrink and perform worse than other advanced economies,
including Russia, as the cost of living continues to hit households, the
International Monetary Fund has said.

 

The IMF said the economy will contract by 0.6% in 2023, rather than grow
slightly as previously predicted.

 

However, the IMF also said that after the Autumn Statement plans it thinks
the UK is now "on the right track".

 

Chancellor Jeremy Hunt said the UK outperformed many forecasts last year.

 

But shadow chancellor Rachel Reeves said the figures showed the UK "lagging
behind our peers".

 

The IMF, which works to stabilise economic growth, said its new forecast
reflected the UK's high energy prices and factors such as high inflation.

 

The UK is expected be the only country to shrink next year across all the
advanced and emerging economies. Even sanctions-hit Russia is now forecast
to grow this year.

 

What is GDP and how does it affect me?

What is a recession and how could it affect me?

If a country's economy shrinks, typically this means companies make less
money and the number of people unemployed rises.

 

IMF chief economist Pierre-Olivier Gourinchas told the BBC that last year,
the UK had "one of the strongest growth numbers in Europe".

 

He said this year's forecast reflected the UK's "high dependence on liquid
natural gas" and that employment was still below pre-pandemic levels.

 

Mr Gourinchas said the plans outlined by the Treasury in the months since
the Autumn Statement showed the UK was "certainly trying to carefully
navigate these different challenges and we think that they are on the right
track".

 

The IMF expects the UK to grow in 2024, revising up its forecast to 0.9%
from 0.6%.

 

Paul Johnson, director of the Institute for Fiscal Studies, said that the
IMF's forecasts were not always right, and he noted the fund was "actually
being more optimistic than it was a few months ago".

 

Forecasts from the Bank of England due later this week are likely to be more
positive than they were two or three months ago, he added.

 

"My best guess is that the economy will be broadly stagnant this year. That
we're not going to get much in the way of growth but we're not going to have
a deep recession either," he told the BBC's Today programme.

 

"Now that's not great, particularly as we should be bouncing back more
strongly from Covid and particularly as we've not been growing terribly well
for the last decade and more."

 

The IMF attributes its downbeat forecast to rapid interest rate rises, tax
rises, higher borrowing costs for businesses and still high domestic energy
prices. The fund said the UK was having to navigate a very complex
environment.

 

But if over the coming year this forecast proves to be correct, it raises
questions as to why the UK will have missed out on a better global economic
backdrop. The UK is now the only shrinking economy out of 15 published in
this report.

 

The Bank of England will publish its new forecast for the UK economy later
this week, alongside an expected further rise in interest rates.

 

The IMF's bleak picture for the UK comes after Mr Hunt warned it was
"unlikely" that there would be room for any "significant" tax cuts in the
Spring Budget.

 

The chancellor, who has been under pressure from some in his party to cut
taxes to stimulate the economy, has said that lowering inflation "is the
best tax cut right now".

 

Inflation - the rate at which prices rise - remains close to its highest
level for 40 years.

 

Prime Minister Rishi Sunak has pledged to halve inflation by the end of the
year, but many expect this to happen anyway largely due to a slowdown in
energy price rises and as post-pandemic supply problems ease.

 

The government's official independent forecaster the Office for Budget
Responsibility (OBR) expects inflation, which measures the rate of price
rises, to fall to 3.75% by the end of this year - well below half the
current level.

 

Andrew Bailey, the governor of the Bank of England, has also said inflation
is likely to fall rapidly this year but has warned a UK recession is still
on the cards.

 

While the IMF predicts the UK economy will contract, it forecasts economic
growth of 1.4% in the US, 0.1% in Germany and 0.7% in France.

 

Hunt says significant tax cuts in Budget unlikely

Bailey: Inflation 'likely to fall rapidly'

Mr Hunt said the IMF's figures "confirm we are not immune to the pressures
hitting nearly all advanced economies".

 

"Short-term challenges should not obscure our long-term prospects - the UK
outperformed many forecasts last year, and if we stick to our plan to halve
inflation, the UK is still predicted to grow faster than Germany and Japan
over the coming years," he added.

 

Economic forecasters are not always right when it comes to predicting the
future. The IMF has said its forecasts for most advanced economies like the
UK's have more often than not been within about 1.5 percentage points of
what actually happens.

 

The IMF said the trend of central banks putting up interest rates to try to
curb inflation and the war in Ukraine continued to "weigh on economic
activity" across the world.

 

But it said China reopening its economy from Covid restrictions "paved the
way for a faster-than-expected recovery" globally.-bbc

 

 

 

 

Tech War: Biden moves to halt US exports to Huawei, reports say

The US government has stopped approving licences for American firms to
export most items to Chinese technology giant Huawei, according to reports.

 

It comes as the Biden administration continues to tighten its rules on
exports of US technology to China.

 

Washington has previously accused Huawei of being a threat to US national
security and of working with the Chinese Communist Party.

 

The company and the Chinese government have repeatedly denied the
allegations.

 

The US Commerce Department has told some American firms that it would no
longer issue licences for US technology exports to Huawei, according to the
Financial Times, which first reported the story.

 

The move comes as Washington moves towards a total ban on the sale of US
technology to the Chinese telecom equipment giant, the paper said.

 

"Working closely with our interagency export controls partners at the
Departments of Energy, Defense and State, we continually assess our policies
and regulations and communicate regularly with external stakeholders," a US
Commerce Department spokesperson told the BBC.

 

"We do not comment on conversations with or deliberations about specific
companies," they added.

 

Huawei declined to comment on the reports.

 

The Biden Administration has continued to tighten restrictions on Huawei as
political tensions between Washington and Beijing increased over Taiwan,
where most of the world's computer chips are made.

 

In October, US Under Secretary of Commerce for Industry and Security Alan
Estevez said "the threat environment is always changing."

 

"We are appropriately doing everything in our power to protect our national
security and prevent sensitive technologies with military applications from
being acquired by the People's Republic of China's military, intelligence,
and security services," he added.

 

For several years the Shenzhen-based Huawei has faced US export restrictions
on items for high-speed fifth generation (5G) telecoms equipment and
artificial intelligence technology.

 

In 2019, during the presidency of Donald Trump, US officials added the
company to a so-called "entity list."

 

It means that US companies need to obtain a licence from the government to
export or transfer some technologies, especially over concerns that they
will be used by the Chinese military.

 

However, in that time licences have been granted to some US companies,
including Intel and Qualcomm, to supply Huawei with technology that was not
related to 5G.-bbc

 

 

 

What impact has Brexit had on the UK economy?

Like it - or not - it has been three years since the UK left the European
Union.

 

Since then there has been a pandemic, swiftly followed by an energy crisis.

 

That has made it hard to decipher exactly what the impact of Brexit has
been.

 

The latest data suggest a hit to the economy - but in some unexpected ways.

 

Trade

As the UK pulled out of the single market and customs union in 2021,
companies trading with the EU faced new rules, new paperwork and new checks
on some goods.

 

That prompted fears over what would happen to the £550bn of trade between
the UK and its nearest trading partner.

 

There was an initial dip in the amount the UK exported to the EU. Once
teething problems were dealt with, trade volumes, recovered to pre-pandemic
levels, according to official figures. But it could be argued trade might
have grown more if it hadn't been for Brexit.

 

When the British Chambers of Commerce surveyed 500 firms recently, more than
half of them said they were still grappling with the new system. The red
tape may have deterred some small exporters altogether. A study of customs
classifications shows the variety of goods we export has diminished.

 

It is a similar story for imports - volumes have recovered to pre-pandemic
levels. But academics at the London School of Economics point out that the
price of food imported from the EU - the likes of tomatoes, or potatoes -
rose, maybe by as much as 6% over 2020 and 2021. That was before the recent
jump in inflation.

 

On the flipside, that has made it easier for domestic food producers to
compete; economists say they may have had a £5bn boost.

 

It is the bigger picture, however, that is more eye-catching.

 

Most nations saw international trade collapse at the height of pandemic.
Since then, the rest of the G7 countries have seen trade, when compared to
the size of their economies, bounce back in a way that hasn't happened in
the UK.

 

chart showing trade openness of UK and of other G7 countries

If you look at the UK's trade with the rest of the world, as well as trade
with the EU, overall it has fallen relative to the size of the UK economy.
Trade hasn't bounced back post-pandemic as fast as it has in other major
nations, it has become less important in contributing to our prosperity.
"Global Britain" has become less open. It is lagging behind.

 

Trade deals

What about new trade deals? They could help - but it is early days still.

 

In total 71 trade deals have been struck, which is swift progress, but the
vast majority just replicate deals Britain had when it was part of the EU.

 

The UK has signed new deals with Australia and New Zealand - but they are
only expected to deliver a tiny boost to trade and even that will take
several years. Plus they are controversial - some UK farmers fear they will
lose out.

 

Talks are still taking place with India and members of a trans-Pacific pact.
They are taking longer than previous ministers had hoped - but analysts
think that taking things more slowly may actually lead to more beneficial
agreements.

 

Trade deals with some of the biggest players, such as the US and China,
remain elusive.

 

Investment

How much businesses choose to spend on factories, training, equipment and
technology, is also affected by our relationship with the EU. And the
chancellor acknowledges that investment can turbocharge growth.

 

But investment has stalled since the referendum, as businesses remain wary
of the outlook for the economy. Investment wasn't great even before 2016,
but if it had continued its pre-referendum trend, analysis by the think tank
the UK in a Changing Europe, suggests it could be about 25% higher than it
is now.

 

Economists argue about how to explain that gap. Some - including the
International Monetary Fund - have suggested that uncertainty surrounding
Brexit, including the unsettled issue of the Northern Ireland Protocol, have
deterred at least some spending. Sir Richard Branson is among the business
bosses who have suggested the cost of Brexit red tape would put them off
investing in the UK.

 

The pro-Brexit group, Briefings for Business, claims that the numbers are
misleading, and that there isn't evidence of a Brexit-related hit to
investment.

 

Ultimately, however, a lack of investment means we are a less-efficient,
lower-earning economy than we could be.

 

Jobs

Leaving the EU also meant changes to the rules on the free movement of
labour and the introduction of a points-based immigration system That has
prompted complaints from some unlikely quarters.

 

The chief executive of fashion chain Next, Lord Wolfson and Wetherspoons'
boss Tim Martin both supported Brexit - but both have called for the UK to
let in more workers.

 

A study by the think tanks Centre for European Reform and UK in a Changing
Europe suggests that there are 330,000 fewer workers in the UK as a result
of Brexit. That may only be 1% of the total workforce - but sectors such as
transport, hospitality and retail have been particularly hard hit.

 

The boss of Wetherspoons supported Brexit but says the UK now needs to let
in more workers from overseas

A lack of workers has resulted in shortages and pushed up bills for
customers.

 

Some commentators argue these constraints will persuade businesses to boost
staffs' skills and invest more.

 

Meanwhile, in the financial services sector, 7,000 jobs may have been lost,
according to a House of Commons report, but that's far fewer than the
70,0000 previously feared.

 

What next?

All of the above adds up to an economy that has fared less well amidst the
recent upheaval than its peers. The UK is the only major rich economy that
remains smaller - poorer - than prior to the pandemic and Brexit may be a
factor.

 

chart showing UK growth since 2019

Overall, the government's independent watchdog, the Office for Budget
Responsibility, thinks the UK will ultimately be 4% worse off, than it would
have been if we had voted no to Brexit - although for many voters, Brexit
was more about sovereignty than the economy.

 

But there remains a lot to be settled.

 

It is not just the Northern Ireland protocol, but also permanent
arrangements for industries like financial services, fishing and electric
vehicle parts, cooperation on science and ways to reduce red tape.

 

There are potential gains there and realising them is a matter of political
as well as economic strategy.-bbc

 

 

 

 

Green projects are boosting UK growth - CBI report

The transition to a greener economy is worth £71bn and has brought jobs and
investment to parts of the UK experiencing industrial decline.

 

Those are the key findings of a new report written by the Confederation of
British Industry (CBI).

 

The drive to reach net zero emissions involves more than 20,000 businesses,
it calculates.

 

Some 840,000 jobs are linked to sectors ranging from renewable energy to
waste management, it adds.

 

Titled Mapping The Net Zero Economy, the report looked at the parts of the
UK that have benefited most from policies aimed at curbing greenhouse gas
emissions.

 

Scotland and English regions, such as Tyneside, Teeside, Merseyside and the
Humber, had all done better than average, with the green economy being
stronger and contributing more to growth than in London and the South East.

 

Green jobs also pay significantly more, the report says, with the average
wage (£42,600) significantly above the national average (£33,400).

 

"The net zero economy is addressing levelling up and the UK's productivity
problem," says Peter Chalkley, the director of the Energy and Climate
Intelligence Unit (ECIU) who commissioned the research.

 

"But if the UK doesn't build on the good work that has already been done, we
will lose out and lose jobs."

 

Net zero delay will hurt economy, MP’s review says

What does net zero mean?

Is the UK on track to meet its climate targets?

The UK has long been seen as a leader in green technology, in particular
offshore wind, but this position is at risk.

 

"Other places (in the world) are really setting out their stalls for how
they're going to capture that investment," says Tom Thackeray from the CBI
who carried out the analysis, adding that there is now a "global
competition" for green funding.

 

The passing last year of landmark legislation in the United States called
the Inflation Reduction Act (IRA) has, analysts say, changed the global
dynamic for green investment. The Bill puts aside $369bn (£297bn) for action
related to tackling climate change and many companies now see America as the
best destination for their money.

 

"There's an excitement [about the US since the IRA], so the challenge for us
is to reignite the excitement back in the UK," says Chris Stark, the chief
executive of the Climate Change Committee, a public body that advises the UK
government on its green policies.

 

The view that the UK is losing momentum was also in Tory MP Chris Skidmore's
Mission Zero report last month in which he said the UK was falling behind in
the net zero race.

 

Restrictive planning regulations for onshore wind and solar, and a lack of
consistency in policy were among many issues Mr Skidmore cited as holding
back investment from the private sector.

 

"We need to really speed up planning and consent for renewables and for
network connections and for vehicle charging," says Emma Pinchbeck, the
chief executive of trade association Energy UK.

 

"It takes 12 years to build a wind farm in this country, when it should take
one."

 

Responding to the report and the criticism of policy, a government spokesman
said the UK was leading the world on tackling climate change.

 

"Our plans will support up to 480,000 jobs by 2030," they said. "We are
driving an unprecedented £100bn of private sector investment by 2030, backed
by around £30bn in funding from the government since March 2021 to achieve
our aims."-bbc

 

 

 

 

Shoppers turn to own-label lines to save money

Shoppers have been switching away from branded sauces, cereals and drinks,
and opting for supermarkets' own-brand equivalents to save money at the
till, the latest figures show.

 

Sales of own-label products have risen 47% over the last year, according to
market research firm Kantar.

 

The change in shopping habits comes against a backdrop of sharply rising
food prices.

 

In January grocery prices were up 16.7% compared to a year ago, Kantar said.

 

Kantar calculates that households are facing an increase of £788 to their
annual grocery bills as a result of rising prices.

 

However, consumer spending on promotions, such as two-for-one, is at a
record low, accounting for just 23% of spending in the four week period
studied by the market research firm. Kantar said supermarkets were focusing
keeping prices low on everyday goods rather than offering promotions.-bbc

 

 

 

Suffolk's Parravani's Ice Cream celebrates 125th anniversary

An ice cream business that is celebrating its 125th anniversary said its
success was "down to using local ingredients and traditional methods".

 

Parravani's Ice Cream was founded in 1898 and is based in Beccles, Suffolk.

 

It said it was the oldest independent ice cream maker in East Anglia, with
its customer base covering Norfolk, Suffolk, Cambridgeshire and Essex.

 

Manager Adrian Nichols said the anniversary was an "incredible milestone".

 

"We feel our success... is down to using local ingredients and traditional
methods handed down through five generations, from 1898 when Giuseppe
Parravani started it," he said.

 

"Although we use modern equipment which speeds up the ice cream-making
process, the ingredients, methods, and recipes very much remain the same
today."

 

Parravani's said its suppliers were "carefully selected for the quality of
their ingredients and their commitment to supporting a locally-made ethos".

 

The business makes more than 30 different ice creams and sorbets and
supplies freshly made ice cream for weddings and events.

 

To celebrate the 125th anniversary, Parravani's will be releasing a limited
edition local strawberries and cream flavour which will be available from
March until September.-bbc

 

 

 

 

JD Sports says 10 million customers hit by cyber-attack

Sportswear chain JD Sports has said stored data relating to 10 million
customers might be at risk after it was hit by a cyber-attack.

 

The company said information that "may have been accessed" by hackers
included names, addresses, email accounts, phone numbers, order details and
the final four digits of bank cards.

 

The data related to online orders between November 2018 and October 2020.

 

JD Sports said it was contacting affected customers.

 

The group said the affected data was "limited". It added it did not hold
full payment card details and did not believe that account passwords were
accessed by the hackers.

 

"We want to apologise to those customers who may have been affected by this
incident," said Neil Greenhalgh, chief financial officer of JD Sports.
"Protecting the data of our customers is an absolute priority for JD."

 

The attack related to online orders placed for the JD, Size?, Millets,
Blacks, Scotts and MilletSport brands and it is understood it was detected
by the company in recent days, but only the historical data was accessed.

 

The company said it was working with "leading cyber-security experts" and
was engaging with the UK's Information Commissioner's Office (ICO) in
response to the incident.

 

Mr Greenhalgh said affected customers were being advised "to be vigilant
about potential scam e-mails, calls and texts".

 

Cyber-attacks have hit several UK companies in recent times. Royal Mail
became the victim of a ransomware attack earlier this month which led to it
halting post and parcel deliveries overseas.

 

In December, the Guardian newspaper was also targeted by a suspected
ransomware attack.

 

Lauren Wills-Dixon, solicitor and an expert in data privacy at law firm
Gordons, said retailers were among the most common targets for cyber-attacks
because of the large amounts of customer data they hold, and said firms
needed to do more to plan for them.

 

But she said the increased use of technology by the industry "to reduce
overheads and streamline operations has raised the risk even further".

 

"In this new world, it's not 'if' but 'when' a cyber-attack will happen,"
she said.

 

A spokeswoman for the ICO confirmed it was aware of the attack and that it
was assessing information provided by JD Sports.

 

Scott Nicholson, co-chief executive of cyber security company Bridewell,
said it was seeing a rise in malicious software, known as "malware" being
used by criminals to steal information from companies.

 

"It is good to see JD Sports stating that they are working with experts to
help from a containment and recovery perspective, but once the dust has
settled their comments of 'we take the protection of customer data extremely
seriously' will be put to the test by the ICO," he added.-bbc

 

 

 

 

Extraction from Scotland's only gold mine ramped up

As a four-wheel drive truck with a large red metal box on its flatbed
rumbles into the gaping mouth of the Cononish mine, near Tyndrum in the west
of Scotland, geologist Rachael Paul explains what's happening.

 

"They can carry explosives in there", she says.

 

We are heading into the access tunnel at Scotland's only gold mine.

 

Scotgold Resources has been developing mining work at this site since 2007.

 

And now the company is aiming to ramp up extraction and wants to develop new
sites nearby.

 

By the end of this year, it aims to be extracting about 2,000 ounces (57kg)
of gold monthly, worth more than £3m.

 

It's a wild winter's day on the surface, but as we travel further into the
mountain, it begins to feel mild, almost warm.

 

"That's the vein," she tells us.

 

"It's a quartz vein with sulphides in it. It runs through the mountain. It's
been here for 400 million years.

 

"We're looking for pyrites, sulphides, different minerals, because the gold
isn't visible to the naked eye."

 

Geologist Rachael Paul says the potential for further development and mining
at the site is "exciting"

Rachael's team map the vein and tell the miners which direction to drill
into the rock.

 

They then charge it, blast it and muck it out with trucks. It's taken away
to be crushed into a concentrate that contains the gold.

 

It has taken two years to reach this point in the mine's development.

 

This main tunnel is more than a kilometre long. More tunnels branch off it.
They follow the vein on three levels.

 

Rachael says the gold vein itself, and others nearby, are "hundreds of
kilometres long".

 

They start in Scotland, go through Northern Ireland and then into Canada.
They were once joined up, apparently, when these countries were part of a
single giant continent.

 

"There's endless potential. There could be more below us. As a geologist,
it's very exciting," Rachael adds.

 

"We're lucky here. The gold is comparatively dense. There's about 10g per
tonne."

 

That may sound like searching for a needle in a haystack, but for gold
miners, that amount of gold could make this mine very profitable.

 

Below the mine entrance, a long low green warehouse is tucked in to the side
of the mountain.

 

It's insulated for sound - a strict rule, as this site is in a National
Park. Inside, its noisy.

 

Tonnes of rock, brought up from the mine, is tumbling through a series of
huge grinders.

 

A massive metal drum spins like a tumble dryer, separating waste rock from
gold flakes. The rubble flows along conveyor belts.

 

What's left looks like wet stony sand. This is as close to gold as we will
get. Almost all of this material will be sent abroad for refining.

 

For Phil Day, a Western Australian and CEO of Scotgold Resources, there's
light at the end of the tunnel, with some "bumper months" ahead.

 

"With all the work the team's done, it's going to be finally paying
dividends," he says.

 

"People seem to love gold. The more there is uncertainty in the world, the
more people want to invest in gold."

 

Phil says the gold price has gone up in recent years and the workforce here
has grown from 15 to 100 over the past two years. They're preparing for a
new phase in production.

 

"Retreat stoping" is an extraction method which Phil says allows them to get
more productivity.

 

"More ounces of gold in a more controlled and better format," he explains.

 

"That's what allows us to get the gold output of 2,000 ounces (57kg) per
month."

 

Phil says there's up to nine years left in this mine. But with the potential
for secondary gold veins, in parallel to the ones already found, the company
hopes "to be able to push that out, to even double that".

 

And Scotgold Resources could be looking to expand.

 

"The area that we have stretches to the west just south of Oban, down
Campbeltown way, and continues through to Loch Tay and the like. We have
2,900 sq km of area that we can explore," says Phil.

 

"So once we've done the Cononish vein, and the one next to it, then we'll
explore out and see how big we can actually make this company. "

 

Phil cannot or will not say how many mines, but says that if they can make
Cononish profitable, the firm will look to "make satellite mines all the way
along".

 

"That is the name of the game," he adds. "To grow, grow, grow."

 

But there could be tension between mining on that scale and protecting the
natural environment.

 

About 550,000 tonnes of rock is set to be brought out of Cononish over its
current projected lifespan. The new seam of gold could see that rise
further.

 

Every new mine would bring out another huge pile of rock, which needs
disposal.

 

Currently Scotgold Resources are required to spread this rock into the
contours of the hillside, then cover it with peat, soil, and plants - in
short, to restore the land entirely.

 

But there's bound to be concern voiced by local and environmental groups, if
and when applications are made for new mines.

 

"We've worked tirelessly to make sure we don't do any harm to people or to
the environment. We strictly adhere to the rules that we've been given,"
says Phil Day.

 

Gold mining on this scale may seem outlandish. But at £1,500 per ounce, it's
too tempting a prospect for some to ignore.

 

So why does gold prove popular with some investors, despite producing no
interest, dividend or earnings?

 

Lena Komileva, chief economist at G+ Economics in London, says that for many
gold is a reassuring investment at a time of great change.

 

"There is always a reason to buy and hold gold. It is a store of value," she
says. "It is a vehicle for transfer of value between generations."

 

Most of the gold produced at the Cononish mine is sold abroad.

 

But a small amount - just a few kilos each year - is now used by two
Scottish jewellers, Edinburgh-based Hamilton and Inches, and Sheila Fleet in
Orkney.

 

"It comes to us in this beautiful form - a solid gold bar," explains Frances
Desoisa, marketing manager at Hamilton and Inches.

 

"It's got that slightly rosier tint and a slightly warmer hue."

 

She adds: "We're all becoming more aware of where things are coming from,
whether that's in the food industry or textiles. The jewellery industry is
no different to that.

 

"So the fact it's 'single mine origin', so close to where we are now, our
clients want to know about that."

 

She says Scottish gold appeals to a wide variety of customers.

 

"We've done a huge range of bespoke commissions - wedding bands, signet
rings are very popular, as well the more statement style pieces.

 

"We also have people from all over the world, who feel this really special
connection to Scotland and want to take it home with them.

 

"We don't know how much Scottish gold there'll be in future.

 

"That makes it more special and rare."-bbc

 

 

 

 

Steel factory evening shutdown to stop power cuts

One of the only steel tube factories in the UK said it was shutting down
before the evening energy peak to help prevent electricity shortages.

 

Last year, National Grid said Britain could face power cuts this winter, but
that was a worst-case scenario.

 

The Tata steelworks in Corby, Northamptonshire, has an electric furnace
which uses the equivalent energy of 11,000 households, as well as a gas
furnace for heating the steel.

 

Paul Ilko, from Tata, said: "We've deliberately scheduled our operations to
avoid those evening hours, because that's when the peak demand for electric
is on the system."

 

Tata Steel manager Paul Ilko said the Corby factory had made a number of
changes to use less energy

 

National Grid said any power cuts would most likely occur between 16:00 and
19:00 GMT.

 

Mr Ilko said the factory, which has produced steel tubes for Wembley and the
Millennium Stadium in Cardiff, was only operating between 09:00 and 17:00.

 

He said that was "because of cost to ourselves but also in terms of
stability of the system, making sure there is enough [electricity] to go
around for everyone at that critical time".

 

"We've done a lot over the years to improve our energy efficiency but we
still consume a lot of energy," he said.

 

The government is expected to announce hundreds of millions of pounds of
support to help Britain's two biggest steelmakers, including Tata, reduce
carbon emissions.

 

But Mr Ilko said the company was already beginning to move to net zero.

 

He said the factory was due to replace the gas furnace with a more efficient
electric convection one and make other changes to the mill to reduce energy
usage.

 

"We're investing very heavily in Corby," he said.-bbc

 

 

 

Tanzania: No Cause for Alarm, State Tells Foreign Mission

THE government insists that the country is still safe, dispelling claims of
terrorist related matters and civil unrest in Tanzania.

 

Minister for Foreign Affairs and East African Cooperation, Dr Stergomena Tax
held a press conference in Dodoma yesterday, as she insisted that there was
no cause for alarm.

 

Dr Tax was speaking after holding a meeting with diplomats representing
their countries in Tanzania, saying the government was shocked by false and
fabricated 'travel alert' statement of the KLM - Royal Dutch Airline issued
last Friday.

 

According to the foreign minister, Tanzania was clear that issuing sensitive
information related to security matters was under the discretion of the
country as per the international protocols.

 

She insisted the country is vigilant as all relevant security organs remain
on alert to ensure the citizens and all other foreigners residing in the
country as well as their properties remain protected.

 

Minister Tax hailed foreign mission in Tanzania as well as international
institutions for respecting the country's laws, saying they should continue
with their normal activities as the nation was safe and secured.

 

-Daily News.

 

 

 

Nigeria: DSS Intercepts Bankers, Syndicates Selling New Naira Notes

Department of State Services (DSS) has intercepted bank officials among the
syndicates, who specialise in trading in the new naira notes around the
country.

 

The revelation was contained in a statement issued yesterday by the DSS
spokesperson, Dr Peter Afunanya.

 

He said some members of the syndicates were involved in the sale of the
redesigned naira notes.

 

Afunanya also said in the course of the operations, in this regard in parts
of the country, it was also established that some commercial bank officials
are aiding the economic malfeasance.

 

Though the agency did not mention the states or commercial banks involved,
it warned the currency racketeers to desist from this ignoble act.

 

It also called on appropriate regulatory authorities to step up monitoring
and supervisory activities to expeditiously address the emerging trends.

 

 

"It should be noted that the Service has ordered its commands and formations
to further ensure that all persons and groups engaged in the illegal sale of
the notes are identified. Therefore, anyone with useful information relating
to this is encouraged to pass the same to the relevant authorities,"
Afunanya stated.

 

The Central Bank of Nigeria (CBN) had on Sunday extended the deadline for
the swapping of old naira notes with the redesigned ones till February 10,
2023.

 

However, LEADERSHIP investigations revealed that some banks within the
Federal Capital Territory (FCT) had refused to pay either the new notes or
the old ones.

 

This has made it difficult to transact businesses as some businesses like
commercial motorists require physical cash to engage in their daily
business.

 

-Leadership.

 

 

 

Nigeria: Govt Bonds Tumble Following Moody's Rating Downgrade

The Federal Government bonds recorded a significant fall yesterday with the
nation's sovereign-risk premium jumping highest in three months following
the downgrading of Nigeria's ratings by Moody's Investors Service.

 

Recall that Moody's downgraded the country on Friday to Caa1 from B3, noting
the government's fiscal and debt position was expected to keep
deteriorating.

 

Longer-dated bonds were down the most, with the dollar-denominated 2051
Eurobond falling more than 2.8 cents in the dollar to 68.758 cents according
to Tradeweb data. Only the Eurobond maturing this year fell less than one
cent.

 

 

The extra yield investors demand to own the country's dollar debt rather
than Treasuries widened 49 basis points to 780, according to JPMorgan Chase
& Co. data.

 

The rate on the nation's 2032 bonds jumped 56 basis points to 12%, also the
most since October. Forward contracts on the currency traded 28% weaker than
the official rate on the one-year tenor.

 

JPMorgan noted that Nigeria's bonds had outperformed other African and
emerging market issuers over the last six months before the Moody's
downgrade.

 

"The review for downgrade focused on Nigeria's fiscal and external position
and the capacity of the government to address the ongoing deterioration -
other than by alleviating the burden of its debt through any form of
default, including debt exchanges or buy-backs," Moody's said.

 

"Immediate default risk is low, assuming no sudden, unexpected events such
as another shock or shift in policy direction," Moody's added.

 

Moody's said it expects just the interest payments on Nigeria's debt to take
up about half of the government's revenue in the medium term, up from 35% in
2022. It also sees the debt-to-GDP ratio rising to 45%, up from 34% last
year and 19% in 2019.

 

The International Monetary Fund, IMF, estimates the country spent 80% of
revenues on servicing debt last year, a ratio that it reckons could rise to
100% this year.

 

-Vanguard.

 

 

 

Nigeria: Inflation - LCCI Tasks Govt, CBN On Support for Agriculture,
Manufacturing

The Lagos Chamber of Commerce and Industry (LCCI) has tasked the federal
government and the Central Bank of Nigeria (CBN) to focus more on policies
that would provide support to the real sector and expand the country's
export's infrastructure in order to contain domestic inflation.

 

The LCCI gave this task in its reaction to the recent increase in the
Monetary Policy Rate (MPR) by the Monetary Policy Committee (MPC) of the CBN
in which it urged the CBN and the fiscal authorities to intervene with
policies and instruments that could boost growth in the economy since rate
hikes are known to weaken economic growth.

 

 

The Director General of LCCI, Dr. Chinyere Almona, said: "In Nigeria, we
need to tackle food inflation from the roots looking at issues like targeted
support to the agriculture sector, manufacturing and the provision of more
export infrastructure for businesses to export more and earn more foreign
exchange.

 

"We urge the CBN to look further inward at the peculiar situations driving
inflationary pressures within the Nigerian economy. Rate hikes are known to
weaken growth, and as such, it is expected that the monetary and fiscal
authorities intervene with policies and instruments that are
growth-boosting. We are also calling on the government to commence
preventive measures against the expectation of flooding in 2023."

 

Almona expressed concern that further increase in the policy rate would put
additional pressure on businesses with the resultant effect of rising
operating costs, low productivity and job losses.

 

"This was our major concern regarding the implementation of more taxes, as
provided in the 2022 Finance Bill. We urge the government to consider
streamlining these issues such that they do not swamp businesses and render
them unproductive and uncompetitive.

 

 

"Beyond the rate hikes, policymakers need to consider more actions to
increase and stabilise oil production levels to earn more FOREX. Better
coordination of fiscal policies can complement the deployment of monetary
instruments by the CBN."

 

The chamber also advised that businesses should also look inwards to source
their raw materials instead of waiting for the CBN to allocate FOREX to
them.

 

"We have consistently advocated for more friendly policy and business
environment that will attract foreign and domestic investment and improve
productivity, particularly domestic food production," she said.

 

The LCCI also commended the commissioning of the Lekki Deep Sea Port, the
Lagos Rice Mill at Imota, the 18.75 killometres Eleko-Epe rigid pavement
six-lane expressway, the first phase of the Blue Light Rail from Mile 2 to
Marina, and the John Randle Centre for Yoruba Culture by President Muhammadu
Buhari as significant factor in driving development in Lagos State.

 

It, however, stated that to maximise the benefits of these infrastructures
and facilities, "there must be a connecting rail network that supports the
movement of goods and persons to fully facilitate trade and commerce within
the state and across the West African borders.

 

"With this connection, Eko Rice can easily move into the West African
markets to explore the benefits of the African Continental Free Trade Area
(AfCFTA). With access to the African market, farmers in Lagos are encouraged
to commit more investments into rice production, create more jobs, and
provide more rice to beat the rising price of the product."

 

LCCI also encouraged other state governments in the country to provide the
needed infrastructure to that could spur economic activities and growth in
their respective states. "We also call on the federal government to be
sensitive to the massive private investments in various states and be more
intentional in creating a stable policy environment. Policy summersault has
remained one of the most damaging factors to investors' confidence," the
LCCI said.

 

-This Day.

 

 

 

Nigeria: High Energy Cost Takes Toll As Diesel Prices Soar 182.6 Percent in
One Year

Abuja — The cost of energy supply has continued to take a depressing toll on
Nigerians with the average retail price of Automotive Gas Oil (diesel) paid
by consumers in 12 months soaring by 182.64 per cent.

 

The latest National Bureau of Statistics (NBS) report showed that the cost
of a litre of the fuel rose from N289.37 in December 2021 to N817.86 per
litre for the same period in 2022.

 

Nigeria has faced rocketing inflation in recent years induced in part by the
rising cost of energy, weakening naira against the dollar, hobbled oil and
gas production as well as misalignment between fiscal and monetary policies.

 

 

Many businesses have continued to struggle for survival, with some having to
suspend operations due to surging diesel prices, as others have pruned down
their staff strength to cut labour costs.

 

But on a month-on-month (MoM) basis, the NBS report covering last month,
showed that the price of diesel increased by 1.11 per cent from N808.87 per
litre reported in November 2022.

 

On state profile analysis, the highest average price of the product in
December 2022, the organisation said, was recorded in Ebonyi with N869.25,
followed by Bauchi with N860.00, and Ondo with N856.36.

 

On the other hand, it added that the lowest price was recorded in Akwa Ibom
with N773.75, followed by Benue with N777.50 and Borno with N785.00.

 

Furthermore, analysis by zone showed that the South-west had the highest
price with N841.35, while the South-south recorded the lowest price with
N798.54.

 

 

However, it is not just the prices of diesel that are negatively impacting
businesses and individuals. The NBS also said that the average retail price
for refilling a 5kg Cylinder of Liquefied Petroleum Gas (LPG) or cooking gas
increased on a year-on-year (YoY) basis by 27.00 per cent from N3,594.81 in
December 2021.

 

But it rose marginally from 0.36 per cent on a MoM basis from N4,549.14
recorded in November 2022 to N4,565.56 in December 2022.

 

Further analysis of the NBS numbers showed that Kwara recorded the highest
average price for refilling a 5kg cylinder of gas with N4,950.00, followed
by Adamawa with N4,933.33, and Plateau with N4,917.50.

 

According to the report, Anambra recorded the lowest price with N4,182.14,
followed by Abia and Rivers with N4,196.15 and N4,207.27 respectively.

 

In addition, analysis by zone showed that the North-central recorded the
highest average retail price for refilling volume of gas with N4,841.07,
followed by the North-east with N4,593.99, while the South-east recorded the
lowest with N4,386.39.

 

 

Also, the average retail price for refilling a 12.5kg cylinder of gas
increased by 0.67 per cent on a MOM basis from N10,180.88 in November 2022
to N10,248.97 in December 2022. On a YoY basis, this rose by 39.78 per cent
from N7,332.04 in December 2021.

 

The NBS report also showed that Benue recorded the highest average retail
price for the refilling of a 12.5kg cylinder with N11,250.00, followed by
Cross River with N10,892.86 and Ebonyi with N10,753.57.

 

Conversely, the lowest average price was recorded in Yobe with N9,500.00,
followed by Zamfara and Gombe with N9,706.25 and N9,750.00 respectively.

 

Similarly, the average retail price per litre of kerosene paid by consumers
in December 2022 was N1,104.61, indicating an increase of 1.94 per cent
compared to N1,083.57 recorded in November 2022.

 

"On a YoY basis, the average retail price per litre of the product rose by
136.04 per cent from N467.97 in December 2021. On state profile analysis,
the highest average price per litre in December 2022 was recorded in Abuja
with N1,383.33, followed by Akwa Ibom with N1,341.67 and Cross River with
N1,300.00.

 

"On the other hand, the lowest price was recorded in Bayelsa with N864.58,
followed by Jigawa with N904.76 and Rivers with N916.67. In addition,
analysis by zone showed that the South-east recorded the highest average
retail price per litre of household kerosene with N1,203.95, followed by the
South-west with N1,177.89, while the North-west recorded the lowest with
N1,011.49, "NBS said.

 

It further stressed that the average retail price per gallon of kerosene
paid by consumers in December 2022 was N3,753.38, showing an increase of
4.42 per cent from N3,594.44 in November 2022. "On a YoY basis, this
increased by 137.15 per cent from N1,582.73 in December 2021," it stated.

 

-This Day.

 

 

 

 

 

 

 

 

 

 


 


 


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 

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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

 


 

 

 

 

 

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