Major International Business Headlines Brief::: 02 May 2023

[Bulls n Bears]

 <https://bullszimbabwe.com/> 

 


 

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

 


 

 


Major International Business Headlines Brief::: 02 May 2023 

 


 

 


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

 


 

 


 

ü  Bumper BP profits of £4bn in three months spark criticism

ü  Silicon Valley Bank: HSBC says UK buyout boosted profit by $1.5bn

ü  Debt ceiling: Janet Yellen warns US could run out of cash by 1 June

ü  Shein: China fashion giant faces US calls for probe over Uyghur claims

ü  Vanessa Hudson: Qantas appoints first female CEO as Alan Joyce steps down

ü  Air India, IndiGo: New record as 456,000 Indians take flights in a day

ü  AI 'godfather' Geoffrey Hinton warns of dangers as he quits Google

ü  Australia to ban recreational vaping in major public health move

ü  Food shop costs 'should start' to fall in next few months

ü  UK chip giant Arm files for blockbuster US share listing

ü  Tanzania, DR Congo Traders Urged to Explore Opportunities

ü  South Africa: Calls for Govt to Hire More Public Servants 

ü  South Africa: Higher Load Shedding Stages Back

 


 <mailto:info at bulls.co.zw> 

 


 

 

Bumper BP profits of £4bn in three months spark criticism

Oil and gas giant BP has reported another set of strong results as energy
prices remain high.

 

Profits hit $5bn (£4bn) in the first three months of the year, although this
was down from $6.2bn last year with oil prices having fallen from the peak
seen after Russia's invasion of Ukraine.

 

Bumper profits from energy firms have led to calls for them to pay more tax
with households facing high bills.

 

Labour called for a "proper" windfall tax on energy profits.

 

"Of course we want BP and others to make profits so they can invest but
these are profits that they didn't expect to make, these are profits that
are over and above because the world price of energy is so high," Labour
leader Sir Keir Starmer told BBC Breakfast.

 

BP reported record annual profits last year as the company - along with the
rest of the energy sector - benefitted from the surge in oil and gas prices
following Russia's invasion of Ukraine.

 

It has led to big profits for energy companies, but also fuelled a rise in
energy bills for households and businesses.

 

Nick Butler, a former BP executive and visiting professor at Kings College
London, said the strong results had come "from a good internal business
performance but also from high prices around the world".

 

But he told the BBC's Today programme the firm's profits were likely to
"come down quite a lot this year" as oil and gas prices were falling back.

 

"That will have an impact on the revenue they get and the taxes they pay."

 

Last year, the UK government introduced a windfall tax on profits made from
extracting UK oil and gas - called the Energy Profits Levy (EPL) - to help
fund its scheme to lower gas and electricity bills.

 

The UK's windfall tax rate is 35%. Oil and gas firms also pay 30%
corporation tax on their profits as well as a supplementary 10% rate.

 

Along with the windfall tax, that takes their total tax rate to 75%,
although companies are able to reduce the amount of tax they pay by
factoring in losses or spending on things like decommissioning North Sea oil
platforms.

 

BP said its UK business - which accounts for less than 10% of its global
profits - paid $650m (£520m) in tax between January and March, with about
$300m due to the EPL.

 

Since the EPL was introduced last year, BP says it has now paid an
additional $1bn in tax.

 

The price of Brent crude oil reached nearly $128 a barrel following the
invasion of Ukraine, but has fallen back since. Its price averaged $81 a
barrel in the first three months of the year, which was down 16% from the
same period in 2022.

 

Wholesale gas prices have also started to fall, which has raised hopes that
household bills will start to come down this summer.

 

However, BP said it expected oil prices to remain "elevated" in the second
quarter given the recent decision by some oil producing nations to restrict
output as well as increasing demand from China.-bbc

 

 

 

Silicon Valley Bank: HSBC says UK buyout boosted profit by $1.5bn

Banking giant HSBC says its profits got a $1.5bn (£1.2bn) boost from the
purchase of collapsed Silicon Valley Bank's British business (SVB UK).

 

Europe's biggest bank posted a pre-tax profit of $12.9bn for the three
months to the end of March.

 

That is more than three times the amount it made for the same time last
year.

 

In March, HSBC bought SVB UK for a nominal £1 ($1.25), in a deal led by the
government and the Bank of England.

 

The London-headquartered lender said the profit included a "provisional gain
of $1.5bn on the acquisition of Silicon Valley Bank UK Limited".

 

"We remain focused on continuing to improve our performance and maintaining
tight cost discipline, but we also saw an opportunity to invest in SVB UK to
accelerate our growth plans," group chief executive Noel Quinn said.

 

The bank also got a boost from the reversal of its plan to write-off $2.1bn
due to the sale of its French business, as that deal may no longer be
completed.

 

HSBC announced its first quarterly payout to shareholders since before the
pandemic in 2019 and said it would buy back $2bn of its shares.

 

It also said the completion of the sale of its business in Canada is likely
to be delayed.

 

The planned $10bn sale, which was originally expected to be completed by the
end of this year, is now likely to go through early next year.

 

The proposed deal is a key part of its strategy to pull back from
slow-growing Western markets.

 

HSBC's strong performance comes against the backdrop of the global banking
sector being rocked by the collapse of Silicon Valley Bank and Signature
Bank in March and the forced buyout by Swiss banking giant UBS of rival
Credit Suisse.

 

On Monday, US regulators seized First Republic Bank and sold its assets to
Wall Street giant JPMorgan Chase.

 

The move was aimed to resolve the biggest failure since of a US bank since
the 2008 global financial crisis and draw a line under weeks of turmoil in
the industry.

 

In recent months, pressure has grown on HSBC from its biggest shareholder,
Chinese insurance giant Ping An.

 

Ping An has called for HSBC to spin off its Asian operation to increase the
amount investors make out of the business there.

 

HSBC is still run from its headquarters in London but makes the majority of
its profits in Asia. These profits effectively subsidise some of the bank's
loss-making operations in Europe and the US.

 

Ping An has argued that this is unfair and its solution is to break up HSBC,
giving Asian investors a larger share of the profits.

 

"If you look at HSBC's share price for the past eight years, Ping An's
investment hasn't been a particularly good one. A break-up may enhance the
value of the bank for shareholders in Asia," says Kenny Wen, head of
investment at KGI Asia in Hong Kong.

 

HSBC has urged its shareholders to vote against the proposal at its annual
general meeting, which is due to take place in Birmingham on Friday.

 

"Currently HSBC clearly has not earned the right to simply bat away calls
for change," Manus Costello from Autonomous Research in London said.

 

A break-up, however, would face "formidable obstacles, including significant
economic and political hurdles," he added.-BBC

 

 

 

Debt ceiling: Janet Yellen warns US could run out of cash by 1 June

US Treasury Secretary Janet Yellen has warned that the US may run out of
cash by 1 June if Congress fails to raise or suspend the debt ceiling.

 

Reaching the debt ceiling would mean that the government is unable to borrow
any more money.

 

On Monday, Ms Yellen urged Congress to act "as soon as possible" to address
the $31.4tr (£25.12tr) limit.

 

President Joe Biden has called a meeting of congressional leaders on the
issue on 9 May.

 

The debt ceiling has been raised, extended or revised 78 times since 1960.

 

In this instance, House Republicans have demanded drastic spending cuts and
a reversal of some aspects of President Biden's agenda - including his
student loan forgiveness programme and green energy tax credits - in
exchange for votes to raise the debt ceiling. This, in turn, has prompted
objections from Democrats in the Senate and from President Biden, who said
last week that the issue is "not negotiable".

 

The president, however, is coming under increasing pressure from business
groups - including the US Chamber of Congress - to discuss Republican
proposals.

 

A default - which would be the first in US history - could upend global
financial markets and shatter trust in the US as a global business partner.

 

Experts have warned that a default could also see the US head into a
recession and lead to rising unemployment.

 

It would also mean that the US would be unable to borrow money to pay the
salaries of government employees and military personnel, social security
cheques or for other obligations, such as defence contractor payments.

 

Even weather forecasts could ultimately be impacted, as many rely on data
from the federally-funded National Weather Service.

 

In a letter to members of Congress on Tuesday, Ms Yellen said that "We have
learned from past debt limit impasses that waiting until the last minute to
suspend or increase the debt limit can cause serious harm to business and
consumer confidence, raise short-term borrowing costs for taxpayers, and
negatively impact the credit rating of the United States."

 

Ms Yellen added that it is impossible to know for sure when exactly the US
will run out of cash.

 

What happens now the US has hit the debt ceiling?

What Danes can teach the US about its debt crisis

Her announcement came on the same day as the Congressional Budget Office
(CBO) reported that there is a "significantly greater risk that the Treasury
will run out of funds in early June".

 

"The projected exhaustion date remains uncertain, however, because the
timing and amount of revenue collections and outlays over the coming weeks
are difficult to predict," the CBO report said.

 

The Treasury plans to increase borrowing through the end of the quarter
ending in June, totalling about $726bn - about $449bn more than projected
earlier this year. Officials have said this is partly due to
lower-than-expected income tax receipts, higher government spending and a
beginning-of-quarter cash balance that was lower than anticipated.

 

In a joint statement on Monday, Democratic Senate Majority Leader Chuck
Schumer and House Democratic Leader Hakeem Jeffries said that the US "does
not have the luxury of waiting until June 1 to come together, pass a clean
bill to avoid a default and prevent catastrophic consequences for our
economy and millions of American families."

 

"Republicans cannot allow right-wing extremism to hold our nation hostage.
For generations, Congress has made spending and revenue decisions as part of
the annual budget process, which is currently underway," the statement said.
"That is the appropriate place to debate and discuss our nation's fiscal
picture - not in a hostage-situation in which extreme MAGA Republicans try
to impose their radical agenda on America."

 

On the Republican side, House Speaker Kevin McCarthy accused President Biden
of having "refused to do his job" and "threatening to bumble our nation into
its first ever default".

 

"The clock is ticking," Mr McCarthy said in a statement. "After three months
of the Biden administration's inaction, the House acted, and there is a bill
sitting in the Senate as we speak that would put the risk of default to
rest. The Senate and the President need to get to work — and soon."

 

In another letter sent to members of Congress in January, Ms Yellen said
that the Treasury Department had begun "extraordinary measures" to avoid a
government default.-BBC

 

 

 

 

Shein: China fashion giant faces US calls for probe over Uyghur claims

A group of US lawmakers has called for Chinese fast fashion brand Shein to
be investigated over claims that Uyghur forced labour is used to make some
of the clothes it sells.

 

The letter to the Wall Street watchdog comes amid expectations the firm may
sell its shares in the US.

 

"We have zero tolerance for forced labour," Shein told the BBC.

 

The company also said that it currently has no plans for a listing on Wall
Street.

 

The letter, which was signed by two dozen Republican and Democrat lawmakers,
cited "credible allegations of utilising underpaid and forced labour".

 

It also called on the Securities and Exchange Commission (SEC) to force
Shein to independently audit and verify "that the company does not use
Uyghur forced labour", before it was allowed to sell shares in the US.

 

In response to the letter, Shein told the BBC: "We are committed to
respecting human rights and adhering to local laws and regulations in each
market we operate in."

 

"Our suppliers must adhere to a strict code of conduct that is aligned to
the International Labour Organization's core conventions," it added.

 

Human rights groups and Western governments, including the US and UK, have
accused China of forced labour and internment of Uyghurs, a mainly Muslim
ethnic minority.

 

In December 2020, research seen by the BBC showed that up to half a million
people were being forced to pick cotton in Xinjiang. Beijing denies any
rights abuses.

 

Some Western brands have removed Xinjiang cotton from their supply chains,
and the US has passed new regulations on the import of goods from Xinjiang
which require firms to prove they were not produced using forced labour.

 

Shein- which was founded in Nanjing, China in 2008 - is now headquartered in
Singapore.

 

It has been winning over young shoppers in the US, UK and Europe by
producing fast fashion even faster, and often at cheaper prices, than many
of its rivals such as Boohoo or Asos.

 

It has collaborated with celebrities and influencers to build its online
following, and in 2021, its mobile app briefly jumped ahead of Amazon on iOS
and Android app charts as the most downloaded shopping app in the US.

 

Shein reportedly relies on thousands of third-party suppliers in China to
produce batches of clothes, which it orders again if they perform well with
customers.

 

In the past, the firm has faced allegations of poor working conditions where
workers allegedly worked 75-hour weeks.-bbc

 

 

 

Vanessa Hudson: Qantas appoints first female CEO as Alan Joyce steps down

Australia's flagship airline Qantas has announced its Chief Financial
Officer Vanessa Hudson will replace current CEO Alan Joyce.

 

She will become Qantas' first female boss when she takes over in November.

 

The airline has suffered turbulence in recent times, with record losses
during Covid-19 and a series of controversies damaging the brand.

 

Ms Hudson, who joined Qantas in 1994, identified restoring the airline's
reputation as a priority.

 

In a statement, she said her historic appointment was "an absolute honour".

 

"I have two young daughters... and I have always been a mother who has
wanted to lead by example," she told reporters.

 

Ms Hudson praised the airline as an "exceptional company", but also promised
to work "very hard" to restore it to its former glory.

 

Last year, Qantas suffered severe criticism over cancelled flights, lost
luggage and delays, but bounced back this year with half-year profits of
A$1.4bn (£742.6m, $928.7m)

 

"We are very up front in recognising that the customer experience was not
where we wanted it to be [and] we have invested A$200 million dollars to get
the performance back where we were pre-Covid," Ms Hudson said.

 

She said she would also seek to build a "constructive relationship" with
aviation unions in a spirit of "mutual trust", after strained relations
during Mr Joyce's tenure.

 

In 2021, Australia's federal court ruled that Qantas had illegally
outsourced almost 1,700 ground staff jobs during the pandemic. The airline
then began a high court appeal to avoid paying compensation over the move.

 

Chairman Richard Goyder paid tribute outgoing CEO Mr Joyce, saying he had
done a "superb job" in his 15 years at the top despite the challenges he
faced, including the 2008 financial crisis, the pandemic and record oil
prices.

 

Mr Joyce often received personal criticism during his tenure, with his A$19m
north Sydney mansion pelted with eggs and toilet paper at the height of the
recent airport chaos.

 

He was also famously attacked - struck in the face with a lemon meringue pie
- at a 2017 business breakfast in Perth, over his public support of same-sex
marriage during a national debate on legalising it.

 

Mr Joyce described stepping down as a "bittersweet moment", having steered
the airline through tough times.

 

"There's still a lot I want to deliver in the next six months, and at the
top of that list is ensuring a smooth handover to Vanessa, who I'm sure will
excel in the role," he said.-BBC

 

 

 

Air India, IndiGo: New record as 456,000 Indians take flights in a day

India's domestic air traffic has hit a record high, with 456,082 passengers
flying on a single day.

 

The milestone, which was reached on 30 April, came as 2,978 flights took off
across the country.

 

"The skyrocketing domestic passenger traffic post Covid is a reflection of
India's high growth," aviation minister Jyotiraditya Scindia tweeted.

 

India's post-pandemic economic recovery has spurred a travel boom.

 

More than 37.5m passengers were carried by domestic airlines in just the
first three months of 2023.

 

This marked a 51.7% growth compared to a year ago, data from the country's
Directorate General of Civil Aviation showed.

 

"There was no growth for two years during Covid. What we are witnessing now
is a snowballing of that pent-up demand," Mark Martin, an aviation analyst,
told the BBC.

 

There has also been a significant increase in the number of first-time
flyers since the pandemic, according to Mr Martin.

 

He added that air traffic in India has typically been growing at twice the
pace of the country's GDP (Gross Domestic Product), as disposable incomes
rise in Asia's third largest economy.

 

Earlier, a report from trade body International Air Transport Association
(IATA) showed that domestic traffic in India had continued to approach
pre-pandemic levels, and was down just 2.2% on February 2019 levels.

 

At 81.6%, India was also the top domestic market in terms of passenger load
factor - the percentage of seats filled by airlines - compared to countries
such as the US, China, Japan, Australia and Brazil.

 

But despite the healthy recovery, the industry continues to suffer due to a
number of issues, including higher aviation turbine fuel prices, a
depreciating rupee against the US dollar and stranded planes.

 

Over 50 aircraft of major Indian carriers such as IndiGo and Go First have
been grounded for several months due to Pratt & Whitney engine-related
issues.

 

"Airlines are losing billions of dollars because of this. We need at least
150 more aircraft to join the fleet to ease the load," Mr Martin said.

 

India has around 1,100 fleet deliveries pending over the next few years
according to ratings agency ICRA. Earlier in February, Tata Group-owned Air
India announced a record deal for 470 jets from Airbus and Boeing - the
largest in the history of global aviation.

 

But ICRA expects capacity addition to be a gradual process, given the supply
chain challenges faced by the manufacturers which are "likely to constrain
the production schedules".-BBC

 

 

 

AI 'godfather' Geoffrey Hinton warns of dangers as he quits Google

A man widely seen as the godfather of artificial intelligence (AI) has quit
his job, warning about the growing dangers from developments in the field.

 

Geoffrey Hinton, 75, announced his resignation from Google in a statement to
the New York Times, saying he now regretted his work.

 

He told the BBC some of the dangers of AI chatbots were "quite scary".

 

"Right now, they're not more intelligent than us, as far as I can tell. But
I think they soon may be."

 

Dr Hinton also accepted that his age had played into his decision to leave
the tech giant, telling the BBC: "I'm 75, so it's time to retire."

 

Dr Hinton's pioneering research on neural networks and deep learning has
paved the way for current AI systems like ChatGPT.

 

In artificial intelligence, neural networks are systems that are similar to
the human brain in the way they learn and process information. They enable
AIs to learn from experience, as a person would. This is called deep
learning.

 

The British-Canadian cognitive psychologist and computer scientist told the
BBC the chatbot could soon overtake the level of information that a human
brain holds.

 

"Right now, what we're seeing is things like GPT-4 eclipses a person in the
amount of general knowledge it has and it eclipses them by a long way. In
terms of reasoning, it's not as good, but it does already do simple
reasoning," he said.

 

"And given the rate of progress, we expect things to get better quite fast.
So we need to worry about that."

 

Is the world prepared for the coming AI storm?

AI could affect 300 million jobs - report

In the New York Times article, Dr Hinton referred to "bad actors" who would
try to use AI for "bad things".

 

When asked by the BBC to elaborate on this, he replied: "This is just a kind
of worst-case scenario, kind of a nightmare scenario.

 

"You can imagine, for example, some bad actor like [Russian President
Vladimir] Putin decided to give robots the ability to create their own
sub-goals."

 

The scientist warned that this eventually might "create sub-goals like 'I
need to get more power'".

 

He added: "I've come to the conclusion that the kind of intelligence we're
developing is very different from the intelligence we have.

 

"We're biological systems and these are digital systems. And the big
difference is that with digital systems, you have many copies of the same
set of weights, the same model of the world.

 

"And all these copies can learn separately but share their knowledge
instantly. So it's as if you had 10,000 people and whenever one person
learnt something, everybody automatically knew it. And that's how these
chatbots can know so much more than any one person."

 

Matt Clifford, the chairman of the UK's Advanced Research and Invention
Agency, speaking in a personal capacity, told the BBC that Dr Hinton's
announcement "underlines the rate at which AI capabilities are
accelerating".

 

"There's an enormous upside from this technology, but it's essential that
the world invests heavily and urgently in AI safety and control," he said.

 

'Responsible approach'

Dr Hinton stressed that he did not want to criticise Google and that the
tech giant had been "very responsible".

 

"I actually want to say some good things about Google. And they're more
credible if I don't work for Google."

 

In a statement, Google's chief scientist Jeff Dean said: "We remain
committed to a responsible approach to AI. We're continually learning to
understand emerging risks while also innovating boldly."-BBC

 

 

 

Australia to ban recreational vaping in major public health move

Recreational vaping will be banned in Australia, as part of a major
crackdown amid what experts say is an "epidemic".

 

Minimum quality standards will also be introduced, and the sale of vapes
restricted to pharmacies.

 

Nicotine vapes already require a prescription in Australia, but the industry
is poorly regulated and a black market is thriving.

 

Health Minister Mark Butler says the products are creating a new generation
of nicotine addicts in Australia.

 

Also known as e-cigarettes, vapes heat a liquid - usually containing
nicotine - turning it into a vapour that users inhale. They are widely seen
as a product to help smokers quit.

 

But in Australia, vapes have exploded in popularity as a recreational
product, particularly among young people in cities.

 

"Just like they did with smoking... 'Big Tobacco' has taken another
addictive product, wrapped it in shiny packaging and added sweet flavours to
create a new generation of nicotine addicts," Mr Butler said in a speech
announcing reforms on Tuesday.

 

"We have been duped."

 

Vapes are considered safer than normal cigarettes because they do not
contain harmful tobacco - the UK government is even handing them to some
smokers for free in its "swap to stop" programme.

 

But health experts advise that vapes are not risk-free - they can often
contain chemicals - and the long-term implications of using them are not yet
clear.

 

Vaping - is it a risk-free option?

Young non-smokers told not to take up vaping

The Australian government argues they are a public health threat,
disproportionately affecting young people, many of whom haven't smoked
before.

 

Research suggests one in six Australians aged 14-17 years old has vaped, and
one in four people aged 18-24.

 

"Only 1 in 70 people my age has vaped," said Mr Butler, who is 52.

 

He said the products are being deliberately targeted at kids and are readily
available "alongside lollies and chocolate bars" in retail stores.

 

He added that vaping had become the "number one behavioural issue" in high
schools. Some have begun installing vape detectors in bathrooms, Australian
media have reported.

 

The health minister said the federal government would work with state and
territory governments on potential penalties for possession of e-cigarettes
unless they had been prescribed.

 

Reforms toughen already strict rules

Australia already has some of the strongest anti-smoking laws in the world.
Mr Butler on Tuesday compared the new vape reforms to those used to reduce
cigarette smoking in Australia to one of the lowest levels among advanced
countries.

 

How Australia is stubbing out smoking

The reforms include a ban on all disposable vapes and a crackdown on the
import of non-prescription products.

 

Scripts will be necessary for the vaping products that remain legal, and
they will be required to have pharmaceutical-like packaging. Restrictions on
flavours, colours, nicotine concentrations and other ingredients will also
be introduced.

 

"No more bubble-gum flavours, pink unicorns or vapes disguised as
highlighter pens for kids to hide them in their pencil cases," Mr Butler
said.

 

However he said the government will also make it easier for people to get a
prescription for "legitimate therapeutic use".

 

A timeline for implementation will be announced at a later date.

 

A handful of other countries, like Singapore and Thailand, have also banned
vaping and Australia's medicines regulator - the Therapeutic Goods
Administration - has been recommending reform.

 

The Cancer Council said the changes could "reverse the e-cigarette epidemic
and prevent history repeating itself for a new generation of Australians".

 

But some politicians, industry bodies and health professionals say Australia
should be relaxing its laws.

 

National Party leader David Littleproud has previously argued the country
should emulate New Zealand's approach and regulate nicotine vapes much like
cigarettes. Others have expressed concern harsher restrictions could see
more people turn to the unregulated illegal market.-BBC

 

 

 

Food shop costs 'should start' to fall in next few months

The cost of a food shop "should start" to come down in the next few months,
the body which represents UK supermarkets has claimed.

 

Supermarkets will start passing on cost savings for milk and other dairy
goods due to cuts in wholesale prices, the British Retail Consortium (BRC)
said.

 

It comes as new figures from the trade body revealed food prices were up
15.7% last month compared to April in 2022.

 

Last week, Sainsbury's rejected suggestions that prices were too high.

 

The denial came after questions over why a drop in the cost of wholesale
food prices globally had not yet led to falls in the prices charged by UK
supermarkets.

 

Helen Dickinson, chief executive of the BRC, said customers should "start to
see food prices come down in the coming months as the cut to wholesale
prices and other cost pressures filter through".

 

She said that retailers were "committed to helping their customers and
keeping prices as low as possible".

 

Many households have felt the impact of rising food bills.

 

Major consumer goods companies and supermarkets have blamed higher costs for
higher prices.

 

Marmite-maker Unilever and supermarket Sainsbury's both recently rejected
suggestions that they are not protecting customers from rising prices.

 

Why are prices rising so much?

Your personalised guide to saving money

While overall food inflation rose in the year to April, according to the
figures from the BRC-NielsenIQ shop price index, fresh food prices
accelerated last month to 17.8%.

 

Ms Dickinson said some goods, such as ready meals, had risen in price
because of a "knock-on effect from increased production and packaging
costs".

 

She added the price of coffee had jumped because of an increase in the cost
of coffee beans, as well as key producers exporting less.

 

However, she said the price of select items like butter or vegetable oils
had already started to come down as retailers passed on some savings.

 

Wholesale food prices have started to fall and the World Bank, which works
on solutions to reduce poverty in developing countries, has said it expects
them to drop 8% by the end of this year.

 

But supermarkets have argued such falls take time to reach the shelves. The
BRC has said there is a three- to nine-month lag to see a decrease in
wholesale prices reflected in-store.

 

In March, the union Unite accused some retailers of "fuelling inflation by
excessive profiteering".

 

The boss of Sainsbury's said the supermarket would pass on any falls in the
price of goods as soon as it could and was "absolutely determined to battle
inflation for our customers".

 

However, Simon Roberts admitted widespread price falls were not likely to
come soon as energy and labour costs continued to rise.

 

While overall food prices continued to rise in April, the BRC said
inflation, which is the rate at which prices rise, both food and non-food,
had fallen marginally to 8.8% in April.

 

But just because the inflation rate has fallen, that does not mean prices
are falling, it just means that prices are not rising as quickly.

 

The BRC said overall price rises in the shops had slowed slightly in April
because of "heavy spring discounting in clothing, footwear, and
furniture".-BBC

 

 

 

UK chip giant Arm files for blockbuster US share listing

British microchip designing giant Arm has filed to sell its shares in the
US, setting the stage for what could be the biggest stock market listing
this year.

 

The Cambridge-based firm is reportedly aiming to raise up to $10bn (£8bn).

 

In a blow to the UK, the company said in March that it did not plan to list
its shares in London.

 

Arm was bought in 2016 by Japanese conglomerate Softbank in a deal worth
£23.4bn. At the time Arm was listed in London and New York.

 

The firm designs the tech behind processors - commonly known as chips - that
power devices from smartphones to game consoles.

 

Its designs are used by chip manufacturers like the Taiwan Semiconductor
Manufacturing Company and household brands like Apple and Samsung to build
their own processors.

 

Softbank said it had "confidentially submitted a draft registration
statement" for the listing to the US Securities and Exchange Commission
(SEC).

 

The announcement did not reveal how much it planned to raise or when the
share sale might take place.

 

The firm was seeking to raise between $8bn and $10bn through the listing
this year on the technology-heavy Nasdaq platform in New York, according to
reports.

 

Listing a firm on a stock exchange takes it from being a private to a public
company, with investors able to buy and sell shares of a company's stock on
specific exchanges.

 

Sometimes referred to as the "crown jewel" of the UK's technology sector,
Arm was founded in Cambridge, England, in 1990.

 

Earlier this year, Arm said it did not plan to pursue a London Stock
Exchange listing.

 

Reports in January said that UK Prime Minister Rishi Sunak had restarted
talks with Softbank about a possible London listing.

 

Arm's decision raised concerns that the UK market is not doing enough to
attract tech company stock offerings, with US exchanges seen to offer higher
profiles and valuations.

 

The registration shows that Softbank is pushing ahead with the multi-billion
dollar sale despite difficult conditions in the global financial markets.

 

The number of stock market listings has fallen sharply since Russia's
invasion of Ukraine. At the same time, shares in major technology companies
have fallen in the wake of the pandemic.

 

Softbank said the listing was "subject to market and other conditions and
the completion of the SEC's review process."

 

Last year, Softbank called off its planned $40bn sale of Arm to technology
group Nvidia after facing regulatory hurdles in the UK, US and EU.

 

After an acute shortage of semiconductors during the pandemic, the chip
making industry has faced slowing demand.

 

Last week, US chipmaking giant Intel reported its largest quarterly loss in
the company's history, while South Korean rival Samsung posted a more than
90% fall in its profits.

 

A successful stock market listing of Arm would be welcome news for its owner
Softbank. Its Vision Funds have been hit by losses due to the declining
valuations of many of its investments in technology start-ups.

 

 

 

Tanzania, DR Congo Traders Urged to Explore Opportunities

Governor of South Kivu Province in the Democratic Republic of Congo (DRC)
Théo Ngwabidje Kasi has urged investors and traders to effectively explore
opportunities available between Tanzania and DRC in strengthening economic
relations.

 

Speaking during the opening of Investment and Trade symposium over the
weekend in Bukavu, Governor Kasi said the heads of State of both countries
have sincere commitment in implementing economic diplomacy, strengthening
investment, trade and markets, asking citizens to fully exploit the
opportunity.

 

"Business is for the development of our countries and most of the business
comes from Tanzania to DRC and from here to Tanzania, the security situation
is good for facilitating trade and transportation between these two
countries," Governor Kasi said.

 

 

For his side, Ambassador of Tanzania to DRC, Saidi Juma Mshana said that the
symposium was aimed at implementing the directives of President Samia Suluhu
Hassan and her DRC's counterpart Félix Tshisekedi concerning the formation
of Joint Permanent Commission (JPC) which is meant to facilitate trade and
business between the two nations.

 

He said that the JPC on cooperation is also aimed at maintaining and
strengthening relations between the countries, including improving transport
infrastructure such as ports, railways and roads.

 

"It is important for our countries to continue cooperating and for traders
to use the opportunities available for the benefit of both countries,
including exploiting the available ports to facilitate trade," Ambassador
Mshana said.

 

Ambassador of Tanzania to Burundi, Dr Jilly Maleko said that the symposium
should be used to strengthen relations and economic diplomacy by promoting
trade in the East African Community (EAC) region.

 

"I have come from Burundi to participate in this event because large cargo
destined for South Kivu Province from Tanzania passes through Burundi. All
the challenges you are facing are the responsibility of our diplomatic
office to work on purposely for promoting good business environment,"
Ambassador Maleko said.

 

At the symposium, the Tanzania Ports Authority( TPA participated where its
representatives stationed DRC and Burundi presented a topic about the value
and importance of using Tanzanian ports for cargo transportation following
massive improvements made by the government in the country and the great
relief that emanates from reduced charges charged to DRC Freight Forwarders.

 

The one-day event involved the government of South Kivu Province, the
Embassies of Tanzania in DRC and Burundi, TPA, CRDB Burundi and the Tanzania
Chamber of Commerce, Industry and Agriculture (TCCIA), and the Federation of
Businesses of the Congo (Federation des Enterprises du Congo - FEC).

 

The symposium is aimed at finding markets for the services of Tanzanian
institutions and markets for industrial products and agricultural products
of Tanzania in the DRC.

 

Daily News.

 

 

 

South Africa: Calls for Govt to Hire More Public Servants 

South African Federation of Trade Unions (SAFTU) General Secretary
Zwelinzima Vavi has urged the government to increase the number of public
servants and improve their salaries, reports SABC News. Addressing the
federation's Workers' Day gathering in Durban, Vavi said the government
needed to pay civil servants a minimum living wage of R75 per hour or
R12,500 per month. Some workers believe that the government has failed to
create enough jobs in the public sector, which has not kept up with
population growth.

 

Concert Organiser, Medical Company Deny Negligence in Treating Late Rapper
Costa Titch

 

News24 reports that claims of medical negligence and a lack of adequate
medical personnel at the popular Ultra Music Festival have emerged following
the death of hip-hop artist Constantinos Tsobanoglou, popularly known as
Costa Titch. Friends of the rapper and his manager claimed that Costa Titch
did not get proper medical assistance after he collapsed on stage at the
music festival held in Johannesburg. The 28-year-old entertainer died on
March 11. Both concert organiser Ultra SA and Altor Emergency Medical
Services, which were contracted to provide medical assistance at the event,
have denied the allegations. The City of Johannesburg has indicated that the
matter is under investigation by the police.

 

 

Prime Energy Drink Sells Out Amid Frenzy in Checkers Stores

 

Prime Energy Drink, owned by popular YouTube stars KSI and Logan Paul, has
caused a frenzy in South Africa, with some Checkers stores reporting it sold
out, reports EWN. The popularity of Prime is attributed to its scarcity and
the trend of conspicuous consumption, especially among younger people.
Parents queued outside Checkers stores nationwide to be the first to
purchase the drink, resembling scenes from Black Friday. Checkers is the
official retail partner of Prime in South Africa.

 

 

 

South Africa: Higher Load Shedding Stages Back

State power utility Eskom has announced that load shedding will be ramped up
to higher stages this afternoon (Tuesday) due to delays in the return to
service of at least nine generating units.

 

Stage 6 load shedding will commence from 4pm this afternoon until 5am on
Wednesday morning.

 

This will be followed by Stage 4 which will remain in place until 4pm.

 

Stage 6 will then commence again with a drop down to Stage 3 from 5am on
Thursday morning.

 

"The delays in returning a unit to service at Arnot, Camden, Duvha, Kendal,
Kriel, Lethabo, Matimba, Matla and Tutuka power stations contributed to the
current capacity constraints. The team is working around the clock to ensure
that generating units are returned to service as soon as possible.

 

"We thank those South Africans who do heed the call to use electricity
sparingly and efficiently in helping to alleviate the pressure on the power
system, as this is assisting in avoiding higher stages of load shedding,"
Eskom said.

 

SAnews.gov.za.

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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

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

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

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

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

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

Skype:         Bulls.Bears 



 

 

 


 

INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

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 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

 


 

 

 

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230502/55682a96/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230502/55682a96/attachment-0002.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 27546 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230502/55682a96/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29321 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230502/55682a96/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230502/55682a96/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29321 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230502/55682a96/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65579 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230502/55682a96/attachment-0001.obj>