Major International Business Headlines Brief::: 05 June 2023

[Bulls n Bears]

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Major International Business Headlines Brief::: 05 June 2023 

 


 

 


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ü  Kenya: Govt in Push to Grow Manufacturing, President Ruto Announces

ü  Seychelles: Cannabis Debate in Seychelles Continues, Advocates for
Legalisation Vocally Campaign

ü  Kenya: Court Suspends Mass Layoff of Facebook Moderators

ü  Namibia: Matthews Explains Why He Declined Namcor Offer

ü  Ethiopian Airlines Refutes Accusation of Blocking Tigrayans From Travel

ü  Nigeria: Katsina to Shut Down Banks, Others Over Unremitted Tax

ü  Nigeria: Subsidy Removal - Tuc Urges FG to Revert to Status Quo

ü  South Africa: Former Eskom Employees, Industry Experts to Start Work At
Power Stations to Ease Load Shedding

ü  Opec+: Oil prices rise as Saudi Arabia pledges output cuts

ü  Money: £9bn in old UK banknotes and coins not cashed in

ü  Strong job gains in US add to economic puzzle

ü  Senate passes US debt ceiling deal, averting a US default

ü  Elon Musk's Twitter loses second trust and safety chief

ü  iPhone in India: Foxconn to manufacture smartphones in Karnataka by April
2024

ü  British Airways fined $1.1m by US government

 


 

 


 <https://www.cloverleaf.co.zw/> Kenya: Govt in Push to Grow Manufacturing,
President Ruto Announces

Nairobi — The government will focus on select value chains to grow
manufacturing to create jobs, President William Ruto has said.

 

The President said the identified value chains have significant untapped
industrial potential and will create thousands of jobs.

 

"We see leather, pyrethrum, cotton, textiles and apparel, pharmaceutical,
edible oils as value chains whose industrialisation will hasten the
attainment of our vision for national economic growth and transformation,"
the President said.

 

The President was speaking during Economic Dialogue on Value Chains at the
Serena Hotel, Nairobi, attended by more than 20 governors led by Chairperson
Anne Waiguru, Investments, Trade and Industry Cabinet Secretary Moses Kuria
and the private sector led by KEPSA Chief Executive Officer Carole Kariuki.

 

He said Kenya's leather industry is operating well below its potential
despite having the third largest livestock population in Africa.

 

"We import shoes worth nine billion every year. Our leather industry has the
capacity to deliver 80,000 jobs and 100 billion dollars. This is a gap we
must close."

 

The President called on county governments and the private sector to join
hands to develop these value chains.

 

-Capital FM.

 

 

 

Seychelles: Cannabis Debate in Seychelles Continues, Advocates for
Legalisation Vocally Campaign

The term "medical cannabis" is another misconception fed to the public as
well as the plant being a gateway drug, said the chairperson of the
Seychelles Kanabis Association (SKA), Nelson Esparon.

 

Recently the association went live on Pure 90.7 local radio station to
provide educational information on cannabis, which is considered an illegal
drug for recreational use under the law, and also held an exhibition at the
Pure Garden at Le Chantier in the capital Victoria.

 

Esparon told SNA that there is a need to dispel misconceptions that surround
the recreational and medical use of cannabis.

 

"When the term "medical cannabis" is used, there's nothing that the
physician or any organisation has done to the cannabis that all of a sudden
makes it safe and ok to use if you have an illness but not ok if being used
for recreational [purposes]," said Esparon.

 

He explained that "if it is so dangerous for recreational users, I don't
think by just labelling it medical cannabis makes it safer and ok to use if
you have an illness. This is one of those absurd misconceptions that I hope
we were able to dispel at the event."

 

 

Uses and dangers

 

According to the UK-based Medical News Today website, cannabis is a plant of
which several parts are used for recreational and medicinal purposes. It can
have a pleasurable effect and may soothe the symptoms of various conditions,
such as anxiety and chronic pain. It can also help with nausea and vomiting
during chemotherapy treatment, sleeping problems and low appetite.

 

The plant contains active ingredients known as cannabinoids and the most
abundant ones are cannabidiol (CBD) and delta-9-tetrahydrocannabinol (THC).

 

However, in high doses, THCs can induce temporary schizophrenia-like
psychotic symptoms such as paranoia, delusions, anxiety and hallucinations,
and worsen other mental health problems.

 

According to Seychelles' Ministry of Health statement on September 22, 2022,
"Cannabis-use was the highest cause of admission (19%) to the Psychiatric
Ward in 2021...Cannabis remains a known risk factor for mental health
problems."

 

Meanwhile, in February 2020, amendments made to the Misuse of Drugs Act
(MODA) made it lawful for people in Seychelles to access cannabidiol-based
(CBD) products for medical purposes.

 

This came after Seychelles' Constitutional Court ordered the government, in
June 2019, to make regulations for the medical use of cannabis, ruling in
favour of a patient who uses the drug to help with the effects of
Alzheimer's disease.

 

"The court in Seychelles has acknowledged the benefits of cannabis and
ordered the government to enact laws and regulations to give cannabis access
to those qualified to use it as a medicine and this has not happened. The
law continues to marginalise everyone who wants to use cannabis, even those
that need this natural plant for their illnesses and in many cases to save
their lives," said Esparon.

 

Aside from Article 29 of the Seychelles' Constitution, which guarantees the
right to health care, Esparon added that MODA is also in violation of other
constitutional rights such as Article 18 - Right to Liberty, and Article 39
- Right to Cultural Life and Values.

 

"SKA has lodged a complaint against MODA and we await an investigation for
this to be ascertained," said Esparon

 

Speaking about cannabis being referred to as a gateway drug, he said that
the event was an opportunity to educate the population on the true nature of
cannabis and the lies surrounding prohibition.

 

A referendum on legalisation?

 

In a latest public meeting, Seychelles' President Wavel Ramkalawan said that
the decision to legalise the recreational use of cannabis is one that the
people should make themselves through a referendum.

 

Esparon told SNA that "most people see a referendum as a democratic approach
but the danger lies with the lack of credible information on cannabis that
is available in the public domain."

 

"The referendum will allow Seychellois to vote on a topic they have very
little knowledge about. Can we say with confidence that our electorates will
be well informed about cannabis prior to them going to vote? For SKA, this
raises a concern when considering a referendum," expressed Esparon.

 

He shared that SKA will continue with its educational programme and provide
factual information about cannabis so as to eliminate the stigma about
cannabis.

 

-News Agency.

 

 

 

Kenya: Court Suspends Mass Layoff of Facebook Moderators

Nairobi — A Kenyan court on Friday ordered the suspension of the mass
sacking of scores of content moderators by a subcontractor for Facebook's
parent company Meta and directed the social media giant to provide
counseling to the employees.

 

A total of 184 moderators employed in Nairobi by Sama, an outsourcing firm
for Meta, filed a lawsuit in March, claiming their dismissal was "unlawful".

 

In a 142-page ruling, labor court judge Byram Ongaya said Meta and Sama were
"restrained from terminating the contracts" pending the determination of the
lawsuit challenging the legality of the dismissal.

 

 

"An interim order is hereby issued that any contracts that were to lapse
before the determination of the petition be extended" until the case is
settled, the judge added.

 

Ongaya also barred Facebook's new outsourcing firm, Luxembourg-headquartered
Majorel, from blacklisting the moderators from applying for the same roles.

 

Meta -- which also owns Instagram and WhatsApp -- was also ordered to
"provide proper medical, psychiatric and psychological care for the
petitioners and other Facebook content moderators".

 

The company told the court of its intention to appeal the ruling.

 

The California-based tech behemoth has held that it has no official presence
in the East African country and that the complainants are not employed by
Meta.

 

The petitioners' lawyer, Mercy Mutemi, said it was "critical that the court
has found Facebook is the true employer of its moderators", adding that they
were "very pleased" with the orders

 

-Capital FM.

 

 

 

Namibia: Matthews Explains Why He Declined Namcor Offer

Lionel Matthews, who was recently appointed as interim managing director of
the state-owned National Petroleum Corporation of Namibia (Namcor), said he
declined to take up the top position because of potential damage to his
brand and family as a result of "falsehoods and media sensationalism".

 

Matthews was appointed as acting managing director of Namcor following the
suspension of the company's managing director Immanuel Mulunga in April.

 

In a media release yesterday, Matthews said the media and various public
personalities made misleading statements which have left the readers with
the impression that he is corrupt, dishonest and greedy, which is not the
case.

 

 

He said his appointment as Namcor's acting managing director came after he
was approached by the chairperson of the Namcor board of directors, Jennifer
Comalie, to assist Namcor on a temporary basis. He agreed to take up the
position.

 

After that, he said, following negotiations with the minister and Namcor's
board of directors, they agreed to his salary for the term that the board
wished to appoint him. He said his monthly salary as acting managing
director of Namcor was pegged at the same level as that of Mulunga.

 

Matthews said he accepted this offer, clarifying that he did not decline the
offer because of a breakdown in negotiations surrounding his salary, as
reported in the media. "On account of the potential damage to my brand and
family given the many falsehoods created and media sensationalism, I took a
well-considered decision to subsequently decline the Namcor offer and guard
everything I have worked for, despite the many attempts to tarnish and ruin
my reputation," he said.

 

FULLBRIGHT LINK

 

Matthews also denied media reports linking him to a consortium called
Fullbright Investments and Omahooli Solutions. He said he never worked for
Fullbright Investments, nor does he have any interest in the entity.

 

"I was never a party to any tender that was awarded to Fullbright
Investments," he said. It was reported that Fulbright Investments and
Omahooli Solutions won a N$1 billion contract to build, finance, operate and
maintain oil depots for Namcor, the company Matthews was appointed to lead.

 

The tender involves the construction, operation and maintenance of Namcor
fuel storage facilities at Ondangwa, Gobabis and Windhoek for 15 to 20
years.

 

Matthews was listed as a transactional adviser for a consortium called
Fullbright Investments and Omahooli Solutions.

 

ONGOS VALLEY

 

The media reported in April this year that Nedbank financed Ongos Valley, a
housing development project in Windhoek, while Matthews was the managing
director of Nedbank. He said this was done by Nedbank as an institution, not
by him because of any relationship he may have had to influence the deal as
managing director. "It is unfortunate that Nedbank Namibia, an impeccable
financial institution I worked for, is now also dragged into this and its
name and, or reputation probably brought into disrepute without any
substance and, or credible justification," Matthews said. He also denied
media reports suggesting anything beyond a professional relationship with
Comalie.

 

"I have conducted myself and my career with utmost integrity and honesty and
have worked tirelessly to achieve the credentials and experience I have for
over 30 years." He said various media reports have created a narrative that
was false, misleading and defamatory.

 

"I, as a citizen of this country, enjoying equal rights as enshrined in our
Constitution, reserve my rights herein to take any appropriate action at my
convenience against anyone I may find to have deliberately peddled lies to
defame me, without any effort to determine the accuracy of the facts before
publication."

 

-Namibian.

 

 

 

Ethiopian Airlines Refutes Accusation of Blocking Tigrayans From Travel

Addis Abeba — Ethiopian Airlines Group refuted as "false allegation" a
report that its services was blocking Tigrayans from travel to and the the
Tigray regional state.

 

On Wednesday 31 May, The Guardian newspaper published a story that "a civil
society organization has launched a lawsuit against Ethiopian Airlines,
accusing the state-owned carrier of discriminating against ethnic
Tigrayans."

 

Ethiopian Airlines resumed travel between Mekelle, the capital of Tigray,
and Adddis Abeba on 28 December following the permanent cessation of
hostilities agreement signed between the federal government and the TPLF in
November 2022. It has since started services between started connecting
Shire with Addis Abeba.

 

 

However, less than two weeks later, restriction has been made on some
passengers en route to Addis Abeba from Mekelle, witnesses told Addis
Standard at the time.

 

According to the Guardian this week, the law suit "brought by Human Rights
First, a local NGO, claims the airline is preventing "Tigrayans aged 15 to
60" from buying tickets for flights from the northern Tigray region to Addis
Abeba, the federal capital. It also claims the company has increased ticket
prices for the route as a form of "collective sanction" against the people
of Tigray."

 

In response, Ethiopian Airlines said that it "is enhancing its services to
the region. In cognizant to the growing demand, currently Nine (9) daily
flights are being operated to the region's capital Mekelle and Shire. These
flight services are among the largest daily connectivity to a region in the
airline's domestic services. We will continue to monitor the demand and
increase frequencies accordingly."

 

It also dismissed the accusations of discrimination that as "a
customer-centric commercial airline, Ethiopian does not discriminate against
passengers based on ethnicity, age, gender or any other factors; it does not
even request for any document to prove ethnicity in the process of providing
its services. Ethiopian is committed to offering smooth flight services to
its domestic and international passengers without any discrimination," and
called the accusations "false allegations."

 

-Addis Standard.

 

 

 

Nigeria: Katsina to Shut Down Banks, Others Over Unremitted Tax

The Katsina State Revenue Services (KRS) has given banks and other agencies
in the state a two-week ultimatum to remit tax collected on behalf of the
state government or face the wrath of the law.

 

The Executive Director, of Katsina Revenue Services (KRS), Alhaji Sirajo
Mohammed, in the company of his team, disclosed this to newsmen when they
visited the defaulters in their offices within the state capital.

 

Sirajo who said the accumulated debt is over one billion naira, noted that
some of the defaulters are owing the state about N500 million.

 

Consequently, the KRS team placed notices of non-compliance at strategic
locations within the premises of the defaulters to draw the attention of the
general public to the development.

 

 

"These agencies and organisations we visited are those that we have
liabilities with. This is just a warning. We will still come back and
enforce the law fully for recovery if within the time given, they do not
respond and we did not see a payment from them.

 

"They have deducted government money and have not remitted to the
government. We have been on this issue for quite some time now. We have met
and sat with them but they have refused to come up with their payments.

 

"So, based on the provisions of the law, we are telling them and telling the
public that these organisations are non-tax compliance and so they should
avoid transacting with them.

 

"In your interest, it is better you don't deal with them. We are giving them
a period of two weeks within which to come forward and settle their
outstanding liabilities, failure of which will result in recovery options
without further recourse to these organisations."

 

"We have quite a lot of options given by the law. We may choose to garnish
or freeze their account or take over their accounts or lock up the premises
until we get our payment. We have quite a number of options.

 

"So, we are hoping that this warning we have served should be enough. We
hope they come around tomorrow or next to settle. So that we can come and
remove the notices and inform the public that they can confidently resume
transacting business with them," Sirajo said.

 

-Vanguard.

 

 

 

Nigeria: Subsidy Removal - Tuc Urges FG to Revert to Status Quo

The Trade Union Congress (TUC) has urged the Federal Government to revert to
status quo ante its decision to remove fuel subsidy.

 

Mr Festus Osifo, TUC President, spoke while addressing newsmen at the end of
an emergency meeting of the congress's National Executive Council (NEC)
meeting on Friday in Abuja.

 

According to Osifo, the TUC is unhappy with the unilateral decision of the
Federal Government to remove the subsidy.

 

He said the TUC's expectation was that the government should have engaged
organised labour.

 

"Having noted this, we wish to state that the NEC-in- session resolved that
discussions with Federal Government should continue while demanding that the
government should revert to status quo ante.

 

 

"The status quo ante should be maintained while discussion continues as we
had a meeting with the government on Wednesday.

 

"During that discuss, they gave us a list of all the things they would do
and they also demanded to know our thinking and what we are putting up.

 

"We told them the lists of the things we want to put forward, we will not
submit them now but put them forward to our organs, to discuss and seek
mandate from them of the things we can put forward,' 'he said.

 

According to Osifo, it is how the government reacts to TUC's demands that
will determine the union's next line of action.

 

"We will wait till Sunday when we will meet with the representatives of the
government.

 

"Once we are done with that meeting then the TUC is going to put its demands
forward, it is how they react to those demands will determine our next line
of action, "he said.

 

The News Agency of Nigeria (NAN) reports that the Nigeria Labour Congress
also had its NEC meeting and has said it will embark on a nationwide strike
as from June 7 if the issue of fuel subsidy removal and increase in the
price of fuel is not reverted. (NAN)

 

-Vanguard.

 

 

 

South Africa: Former Eskom Employees, Industry Experts to Start Work At
Power Stations to Ease Load Shedding

Minister in the Presidency responsible for Electricity, Kgosientsho
Ramokgopa, announced on Friday that technical experts supported by the
Resource Mobilisation Fund (RMF) will be stationed at various power stations
across the country from Monday, 5 June 2023.

 

He said the team will go around the four power stations where the Energy
Availability Factor (EAF) is low.

 

These, according to the Minister, include Matla, Kriel, Majuba, and Kendal
power stations.

 

In addition, support will be given to open-cycle gas turbines, which poses a
challenge when it comes to logistics and storage and is confident that the
experts will provide solutions.

 

 

The RMF, which was launched in March this year, already raised R100 million
from businesses and philanthropies.

 

The funds will be used to provide technical support and capacity to the
National Energy Crisis Committee (NECOM) and employ the best minds in the
game to end load shedding.

 

These experts, according to the Minister, include former Eskom employees,
while others are industry experts.

 

He said the professionals, who come highly recommended, will be allocated
according to their specialities.

 

On the demand management support, he said he was confident that the
programme will be oversubscribed.

 

"Remember, we did say that there's huge potential that can be derived on the
demand side essentially, clawing back the megawatts on the demand side
without necessarily interrupting households' ability to get their daily
requirements. But how smart we engage about how we engage with energy
solutions."

 

He said he was happy to indicate that Eskom has agreed to waive the
requirement for security deposits to enable the wheeling of electricity to
municipalities in good standing.

 

"So we think that this will significantly improve a generation because this
was one major stumbling block."

 

The Minister also announced the two additional hydrogen projects the Risk
Mitigation Independent Power Programme have been approved by the Eskom board
and believes the project will reach a close by the end of June this year.

 

The project, according to the Minister, will add an extra 274 megawatts (MW)
to the grid.

 

In addition, he said preparations are underway to release an additional Bid
Window.

 

"We're looking at the additional Big Wwindows in June and July of 2023 and
this will include a Big Window number seven for wind and solar PV."

 

He also reaffirmed government's commitment to the decarbonisation agenda and
between these Bid Windows, he said Eskom is looking at between 5000 MW.

 

"We need to make sure the prospects of these projects are located
geographically in the areas that have got access to grid capacity."

 

He reminded the journalists that the major shortcomings of the previous Bid
Window were about 3 000 MW, which remains unallocated because of poor or no
access to create capacity.

 

"So we'll make sure that there is no misstep there."

 

In addition, he said a further Bid Window involves four battery storages of
1 200 MW and a gas project of 3 000 MW.

 

Meanwhile, the request for proposals (RFP) for the load shedding reduction
programme to the tune of 750 MW in the cross border procurement programme of
1 000 MW, will together procure an excess of 10 000 MW.

 

About the winter plan, he said the demand has been ramped but the team at
Eskom is working around the clock to lower the stages of power cuts.

 

He also emphasised that the power entity is far from the grid collapse.

 

-SAnews.gov.za.

 

 

 

Opec+: Oil prices rise as Saudi Arabia pledges output cuts

Oil-producing countries have agreed to continued cuts in production in a bid
to shore up flagging prices.

 

Saudi Arabia said it would make cuts of a million barrels per day (bpd) in
July and Opec+ said targets would drop by a further 1.4 million bpd from
2024.

 

Opec+ accounts for around 40% of the world's crude oil and its decisions can
have a major impact on oil prices.

 

Average diesel prices fell by a record 12p per litre in the UK last month,
according to the RAC.

 

In Asia morning trade on Monday, Brent crude oil futures rose above $77 a
barrel.

 

The seven hour-long meeting on Sunday of the oil-rich nations, led by
Russia, came against a backdrop of falling energy prices.

 

Total production cuts, which Opec+ has undertaken since October 2022,
reached 3.66 million bpd, according to Russian Deputy Prime Minister
Alexander Novak.

 

Why are the world's big oil producers cutting supplies?

Opec+, a formulation which refers to the Organization of Petroleum Exporting
Countries and its allies, had already agreed to cut production by two
million bpd, about 2% of global demand.

 

"The result of the discussions was the extension of the deal until the end
of 2024," Mr Novak said.

 

'A Saudi lollipop'

In April, it also agreed a surprise voluntary cut of 1.6 million bpd which
took effect in May, a move that briefly saw an increase in prices but failed
to bring about a lasting recovery.

 

On Sunday, Saudi Energy Minister Prince Abdulaziz bin Salman said the cut of
one million bpd could be extended beyond July if needed. "This is a Saudi
lollipop," he said, in what is seen as a bid to stabilise the market.

 

Before the two-day Opec+ meeting started, it was widely expected the oil
cartel would make production cuts to prop up prices. It appears most members
were against the idea, as any cuts would impact oil revenues, which are
crucial to keep running their economies.

 

Saudi Arabia's decision to make a voluntary reduction of one-million barrels
per day was unexpected but does not come as a huge surprise. As the leader
of the pack, and also the largest exporter of oil, it was the only one in a
position to be able to lower output.

 

>From Riyadh's point of view, it is crucial the price of crude remains over
$80 a barrel for it to break even. Saudi officials want elevated prices to
keep spending billions of dollars on ambitious projects spearheaded by Crown
Prince Mohammed bin Salman, as he tries to diversify the kingdom's economy
away from oil.

 

The move by the Saudis also underlines the uncertain outlook for demand for
fuels in the months to come. Concerns about the global economy, especially
recessionary fears in the US and Europe are expected to put further pressure
on crude prices.

 

2px presentational grey line

Oil producers are grappling with falling prices and high market volatility
amid the Russian invasion of Ukraine.

 

The West has accused Opec of manipulating prices and undermining the global
economy through high energy costs, according to Reuters. It has also accused
the group of siding with Russia despite sanctions over the invasion of
Ukraine.

 

In response, Opec insiders have said the West's monetary policy over the
last decade has driven inflation and forced oil-producing nations to act to
maintain the value of their main export.-bbc

 

 

 

Money: £9bn in old UK banknotes and coins not cashed in

Almost £9bn in old banknotes have not been cashed in across the UK, even
though paper £20 and £50 stopped being legal tender in October.

 

Paper banknotes have been replaced with plastic notes with a series of
security features.

 

The Bank of England said the withdrawn banknotes could still be deposited or
exchanged.

 

There are also £87m of old £1 coins that have not been returned, according
to the Royal Mint.

 

Details of the cash still in circulation or hiding in homes was revealed in
Freedom of Information requests by BBC Wales.

 

The Bank of England said 445 million paper banknotes remained in
circulation:

 

111 million £5 notes

65 million £10 notes

198 million £20 notes

70 million £50 notes

Paper £5 notes were withdrawn in May 2017 and the paper £10 notes in March
2018.

 

In addition to the paper cash, the Royal Mint, which is based in
Llantristant, Rhondda Cynon Taf, said about 87 million old style £1 coins
had not been returned.

 

However, about 18 million have been returned over the past year.

 

Out of the 1.6 billion that have been returned, about 1.8 million were
counterfeit.

 

King Charles banknotes printed - but not ready yet

NHS gets special birthday coin

The round £1 coin was replaced by the 12-sided version in October 2017 - the
old style coin can still be deposited at the Post Office but cannot be
spent.

 

According to the Royal Mint, owned by the UK Treasury, about 138 million
round £1 coins have been melted down to make some of the new ones.

 

The polymer £50 note featuring the portrait of Alan Turing entered
circulation on 23 June 2021, meaning the Bank of England's entire collection
of currently-printed banknotes is made of plastic.

 

While the paper notes are no longer legal tender, a Bank of England
spokeswoman said "all genuine" banknotes that have been withdrawn from
circulation retain their face value.

 

They can be returned to banks and some Post Offices, but the latter will
only exchange a maximum of £300.

 

People can also post old notes to the bank in Threadneedle Street in the
City of London, to be paid into a bank account, by cheque or, "if you live
in the UK and your exchange is worth up to £300", swapped for new-style
polymer ones.

 

Old notes can also be taken there in person but the bank warns of "long
waiting times".

 

The use of cash fell sharply during the coronavirus pandemic as lockdowns
reduced options for spending, this accelerated a downward trend for the use
of notes and coins.

 

However, cash still accounted for 15% of all payments in 2022, according to
the latest available figures by banking trade body UK Finance, making it the
second most-popular way to pay after debit cards.-bbc

 

 

 

Strong job gains in US add to economic puzzle

Job creation in the US remained robust last month, despite rising prices and
a sharp spike in borrowing costs weighing on the economy.

 

Employers added 339,000 jobs, but the unemployment rate rose to 3.7%, from
April's unusually low 3.4%.

 

The gains were far greater than expected, continuing a streak of hiring that
has surprised economists.

 

Analysts have expected hiring to slow as the US central bank raises interest
rates to try to rein in rising prices.

 

But payrolls have remained resilient, raising hopes the economy will avoid a
painful recession, while also stirring debate about whether the Federal
Reserve will have to take more aggressive action to bring inflation under
control.

 

Inflation, the rate at which prices rise, was 4.9% in the US in April.

 

While that was the lowest in roughly two years, it remained more than double
the 2% rate that the bank considers healthy.

 

Expectations of what Friday's report might mean for interest rates in the
months ahead were divided.

 

"This is the strangest employment report for some time," said Ian
Shepherdson of Pantheon Macroeconomics, pointing to the disconnect between
the job gains and the rise in unemployment reported by the Labor Department.

 

How worried should I be about the US economy?

Some analysts said the widespread job gains in May, as hospitals,
restaurants, bars and construction firms added workers, were a sign that the
Fed will have to raise interest rates more.

 

The Labor Department also said employers added more jobs in April had been
greater than previously estimated.

 

Others said the report included signs that should convince the bank to hold
off, pointing to moderating wage gains. At 3.7%, the unemployment rate was
also the highest in seven months.

 

US President Joe Biden, who has been dogged by public pessimism over the
economy, celebrated the figures, saying it was a "good day for the American
economy and American workers".

 

But others said the gains may not be sustainable.

 

Seema Shah, chief global strategist at Principal Asset Management, said the
"blow out" job figures in May indicated that the "Fed's job is not yet
done".

 

"The key question now is: can they wait until July or does this monster
payrolls number trigger another burst of urgency?" she said.

 

"Perhaps the report details, with the unemployment rate rising and average
hourly earnings growth slowing, tilts the decision to July. But overall,
this is not a labour market that is slowing - and if it's not slowing, then
inflation isn't coming down to 2%."

 

If the US central bank continues to raise interest rates, that would lead to
higher borrowing costs for households and businesses seeking mortgages or
other loans.

 

The expectation is that the economy will cool, easing pressures pushing up
prices, as higher borrowing costs lead people to cut back on spending and
businesses to delay expansions and other activities.

 

"By year-end, as the impact of Fed tightening feeds into the economy and
corporates retrench, we expect a material weakening in job market conditions
and an early-90s type economic recession," said Hussain Mehdi, macro and
investment strategist at HSBC Asset Management.

 

He added: "A delay to this process implies the risk of higher-for-longer
rates, and a deeper downturn."

 

For now, many on Wall Street appear to be betting on a pause at the Fed's
June meeting.

 

Stock indexes in the US, which were also cheering passage of a deal to avert
US default, gained.

 

The Dow Jones Industrial Average rose 2.1%, the S&P 500 was up 1.45% and the
Nasdaq ended 1% higher.-bbc

 

 

 

Senate passes US debt ceiling deal, averting a US default

The US Congress has approved a deal to lift the country's borrowing limit,
days before the world's largest economy is due to default on its debt.

 

The bipartisan measure sped through the Senate by a vote of 63-36, a day
after it cleared the US House of Representatives.

 

President Joe Biden has said he will enact the measure into law.

 

His signature on the bill will spare the US from a catastrophic default on
its $31.4tn (£25tn) debt.

 

The country is forecast to overshoot its current debt ceiling on Monday 5
June.

 

What's in US debt ceiling deal and who won?

A simple guide to the US debt ceiling

A default would limit the government's ability to borrow more money or pay
all of its bills. It would also threaten to wreak havoc overseas, affecting
prices and mortgage rates in other countries.

 

In Thursday night's session, the bill passed with support from 44 Democrats
and 17 Republicans, plus two independents.

 

Sixty votes were required to approve the measure in a 100-seat chamber that
Democrats only narrowly control.

 

Thirty-one Republicans were opposed, including a member of the party's
leadership in the chamber, John Barrasso.

 

Democratic senators John Fetterman and Elizabeth Warren, plus Bernie Sanders
who is independent, also voted against.

 

Senators first proposed 11 amendments to the debt ceiling bill, but they
were all rejected in quick order, paving the way for a final vote.

 

If a single one of the amendments had passed, the whole bill would have had
to be sent back to the House, leaving little time to ensure final passage of
the measure before the US fell off a fiscal cliff.

 

"America can breathe a sigh of relief, a sigh of relief because in this
process we are avoiding default," Democratic Majority leader Chuck Schumer
told the Senate.

 

In a rare display of bipartisanship, Senate Republican leader Mitch
McConnell told reporters he would be "proud to support it without delay".

 

The deal had easily cleared the House of Representatives on Wednesday
evening by a vote of 314-117. Some 165 Democrats joined 149 Republicans in
approving it by the required simple majority.

 

With Republicans in control of the lower chamber of Congress, and Democrats
in the Senate and White House, a deal proved elusive for weeks until Mr
Biden and House Speaker Kevin McCarthy inked a compromise last weekend.

 

The agreement suspends the debt ceiling, the spending limit set by Congress
that determines how much money the government can borrow, until 1 January
2025.

 

The legislation will result in $1.5tn in savings over a decade, the
independent Congressional Budget Office said on Tuesday.

 

The contents of the bill drew objections from both right-wing Republicans
and left-wing Democrats, but there were more than enough political centrists
in both parties to get it over the line.

 

The last time the US came this close to overshooting its debt ceiling, in
2011, the credit agency Standard & Poor's downgraded the country's rating, a
move that has yet to be reversed.

 

Ahead of the Senate vote, US stock markets made gains, with the Dow closing
0.5% higher. The broader S&P 500 index rose by 1% and the tech-heavy Nasdaq
ended the day 1.3% higher.-bbc

 

 

 

Elon Musk's Twitter loses second trust and safety chief

Twitter's second head of trust and safety under owner Elon Musk has
resigned, according to reports.

 

Ella Irwin took the post when previous head Yoel Roth left in November 2022
- a month after Mr Musk took over the company.

 

The head of trust and safety is tasked with content moderation, a topic
which has come under the spotlight since Mr Musk's takeover.

 

The BBC has approached Twitter and Ms Irwin for comment.

 

She confirmed to both Reuters and the Wall Street Journal that she has
stepped down. The reason for her resignation is unclear.

 

However, it comes a day after Mr Musk publicly criticised a content
moderation decision made at Twitter.

 

He called the decision to limit the visibility of a video over allegations
of misgendering, "a mistake by many people at Twitter".

 

"Whether or not you agree with using someone's preferred pronouns, not doing
so is at most rude and certainly breaks no laws," he wrote.

 

It comes a week after the social media platform pulled out of the European
Union's voluntary code to fight disinformation.

 

Mr Musk announced last month that Linda Yaccarino, the former head of
advertising at NBCUniversal, would become Twitter's new chief executive. She
has not yet started her role.

 

Content moderation

In-depth studies have indicated hate speech has been growing under Mr Musk's
tenure, with the Center for Countering Digital Hate, a London-based campaign
group, finding slurs increased substantially after the takeover.

 

And in December 2022, Twitter disbanded the volunteer group which advised it
on self-harm, child abuse and hate speech.

 

But there have been moves to moderate the accuracy of content, with Mr Musk
announcing the platform's Community Notes feature would be expanded to
images.

 

Community Notes is a crowdsourced fact-checking system, in which Twitter
users can add comments which provide context to tweets - often labelling
them as false or misleading.

 

The platform wants to expand this feature to include video in the
future.-bbc

 

 

 

iPhone in India: Foxconn to manufacture smartphones in Karnataka by April
2024

Apple's biggest supplier Foxconn will start manufacturing iPhones in the
southern Indian state of Karnataka by April next year, the state government
has said.

 

The project will create around 50,000 jobs, it said.

 

Taiwan-based Foxconn manufactures the majority of Apple's phones.

 

The firm has been making older versions of iPhones at a facility in the
neighbouring state of Tamil Nadu since 2017.

 

Last month, the company announced it had bought 1.2m sqm (13m sqft) of land
near Bengaluru city in Karnataka.

 

Bloomberg reported Foxconn planned to invest $700m (£566m) on a new factory
in the state. On Thursday, the Karnataka government said the project was
valued at $1.59bn.

 

Land for the factory would be handed over to company by 1 July, it said in
its statement.

 

According to Reuters, Foxconn has set a target of manufacturing 20 million
iPhones a year at the plant in Karnataka.

 

Apple's decision to manufacture their flagship model in India and diversify
its supply chains away from China comes as trade tensions rise between
Washington and Beijing.

 

Apple makes most of its phones in China. In India, iPhones are assembled by
several Apple suppliers, including Foxconn. It currently accounts for 5% of
total iPhone production.

 

The company struggled to compete in the Indian market which is dominated by
the much cheaper South Korean and Chinese smartphones.

 

Apple CEO Tim Cook was in India in April to launch the country's first two
Apple stores.-bbc

 

 

 

 

British Airways fined $1.1m by US government

British Airways has been fined $1.1m (£878,000) by the US government over
claims it failed to pay refunds for cancelled flights during the pandemic.

 

The US Department of Transportation said the airline had not provided
"timely refunds to passengers" for abandoned or rescheduled flights to and
from the country.

 

It said it had received more than 1,200 complaints about the airline.

 

BA rejected the claims, saying it had "acted lawfully at all times".

 

According to the transport department, from March to November 2020, BA's
website instructed consumers to contact the carrier by phone to discuss
refund options, including for flights the carrier had cancelled or
significantly changed.

 

However, consumers were unable to get through to customer service agents
when calling the carrier for several months during this period because BA
failed to maintain adequate functionality of its customer service phone
lines , it said.

 

"There was also no way to submit a refund request through the carrier's
website during this period," the department said.

 

It added that from March to November 2020, misleading information on BA's
website had led consumers to inadvertently request travel vouchers instead
of refunds.

 

It said that along with the 1,200 complaints received by the department, BA
had received thousands more complaints and refund requests directly from
consumers.

 

The department said the failures had "caused significant challenges and
delays in thousands of consumers receiving required refunds".

 

It added that the fine established a "strong deterrent to future similar
unlawful practices".

 

BA will be credited $550,000 towards the penalty because it paid more than
$40m in refunds to customers with non-refundable tickets in 2020 and 2021.

 

The airline said: "We're very sorry that at the height of the unprecedented
pandemic - when we were unfortunately forced to cancel thousands of flights
and close some call centres due to government restrictions - our customers
experienced slightly longer wait times to reach customer service teams.

 

"During this period, we acted lawfully at all times and offered customers
the flexibility of rebooking travel on different dates, or claiming a refund
if their flights were cancelled.

 

"To date, we have issued more than five million refunds since the start of
the pandemic."-bbc

 

 

bbc

 

 

 

 

 

 


 


 


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  

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Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

Heroes’ Day

 

Aug 14

 


 

Defence Forces Day

 

Aug 15

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


CBZH

GetBucks

EcoCash

 


TSL

Econet

Turnall

 


First Capital Bank

ZBFH

Fidelity

 


Zimplow

FMHL

 

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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

 


 

 


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

 


 

 

 

 

 

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