Major International Business Headlines Brief::: 08 May 2023

Mon May 8 05:35:21 CAT 2023

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Major International Business Headlines Brief::: 08 May 2023 

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ü  Janet Yellen: US treasury secretary warns of debt ceiling 'catastrophe'

ü  Mortgage refused 'for hosting Ukrainian refugees'

ü  US job creation robust despite banking crisis

ü  Tata Steel warns of uncertainty over future of UK business

ü  Bunting, biscuits, beer - Brits spend on Coronation

ü  Ex-Uber security chief sentenced over covering up hack

ü  HSBC foils plan by major investor to break up bank

ü  CBI hires ethics consultancy to overhaul culture

ü  White House: Big Tech bosses told to protect public from AI risks

ü  Unionised US Apple Store proposes asking for tips

ü  Kanye West Yeezy loss is hurting us, admits Adidas

ü  Tanzania: Kwala Dry Port Construction Thrills DRC Officials

ü  South Africa: President Ramaphosa Deploys 800 SANDF Members to Protect Eskom Power Stations

ü  Africa: Germany's Scholz Urges More Cooperation During Africa Trip

ü  Africa: IMF Chief Advocates Africa Continental Free Trade Area

 <https://www.cloverleaf.co.zw/> Janet Yellen: US treasury secretary warns of debt ceiling 'catastrophe'

US Treasury secretary Janet Yellen has warned a failure to raise the US's debt ceiling could have dire consequences.

Without an agreement to increase what the federal government can borrow, it could run out of money by early June.

At that point the federal government might not be able to make wage, welfare and other payments.

"It's Congress's job to do this. If they fail to do it, we will have an economic and financial catastrophe that will be of our own making," she said.

In an interview with ABC News on Sunday Ms Yellen said debt ceiling negotiations should not take place "with a gun to the head of the American people."

But time is running out for an agreement.

On Tuesday President Biden will meet Republican leaders to ask them to agree to raising the current $31.4tn (£25.12tn) limit.

Congress typically ties approval of a higher debt ceiling to stipulations on budget and spending measures.

Last month the House of Representatives passed a bill to raise the ceiling, currently roughly equal to 120% of the country's annual economic output, but included in the bill sweeping spending cuts over the next decade.

President Biden wants Congress to agree to raise the debt ceiling, with no conditions. President Biden has said he will not negotiate over the increase and will discuss budget cuts after the issue is resolved.

Failure to find cross-party agreement on the issue could result in a "constitutional crisis" Ms Yellen said.

The Biden administration is considering whether there is scope within the constitution for the president to continue issuing new debt without the approval of Congress, but will this week strive to avoid that scenario.

"We should not get to the point where we need to consider whether the president can go on issuing debt. This would be a constitutional crisis," Ms Yellen told ABC.

The debt ceiling has been raised, extended or revised 78 times since 1960, often with negotiations going down to the wire.

In the end, the threat of a default on government payments including debt obligations has always led to compromise. The US has never defaulted, an event that would upend global financial markets and have far-reaching economic impacts.

But delaying a resolution also had negative consequences, Ms Yellen said in a letter to Congress last week.

"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," she wrote.-bbc

Mortgage refused 'for hosting Ukrainian refugees'

Halifax has apologised for rejecting a customer's mortgage application because the home owner is hosting two Ukrainian refugees.

Dominik Zaum and his family have had a mother and her young daughter staying with them in an annexe since June 2022.

When his mortgage came up for renewal, he applied for one with Halifax.

But Dominik was refused after Halifax said there was a risk he could rent out the space for commercial gain in the future.

"We were very surprised by this because we've never rented it out, we're not renting it out now... and we have no intention of renting it out in the future," he said.

Dominik has what he describes as a small "granny" flat attached to his house. It is one self-contained room with a kitchenette and a small bathroom accessed by its own door.

He is part of the Homes for Ukraine scheme which started just over a year ago to help rehome refugees who fled the country following Russia's invasion in February 2022.

So far, according to government figures 153,000 Ukrainian refugees have arrived in the UK and research suggests most of them have stayed.

To help with the expense of housing refugees, hosts are provided with £350 per month for the first 12 months and £500 for each month after that point.

Like millions of other fixed-rate mortgage holders in the UK, Dominik's loan was coming up for renewal this year so he decided to look around for a new deal.

And that's when the trouble - and worry - started.

Halifax sent someone to value Dominik's home.

He said: "We spoke directly with the valuer before, when he came and looked at our house."

But Dominik said "When we contacted the Halifax through our broker they said they could not provide us with a mortgage because we were providing accommodation to a Ukrainian family and therefore there was a significant risk that we would rent out the room commercially in the future."

Halifax has since apologised for "the confusion" after being contacted by Money Box and has offered Dominik a mortgage deal.

But Dominik claims the only reason Halifax backed down is because Money Box started to investigate. "We raised it twice with the Halifax through our mortgage broker and nothing changed," he said.

"It is very unfortunate that it took Money Box to get a response."

Halifax said it is "very sorry for the confusion" and is very supportive of the Homes for Ukraine scheme and that it wouldn't decline a mortgage application on this basis.

"Having reviewed the application again, we've now issued an offer and the application will proceed as normal," it said.

Halifax said the valuer did not appreciate the informal nature of the tenancy, and this was reflected in their report where they noted the property was unsuitable for these lending purposes and given a zero valuation.

Dominik said that he was worried that Halifax's refusal could have been mirrored by the rest of the lending sector. "We did not know at the time if other banks might have reacted similarly," he said.

"We have since secured a mortgage with another bank so, fortunately, it has not had any impact on our finances."

He added: "Had we not been able to secure a new mortgage we would have moved from a fixed-term mortgage to a higher rate and cost us over £9,000 a year."

The government has advised people who are hosting refugees through the Homes for Ukraine scheme to keep any interested parties informed.-bbc

US job creation robust despite banking crisis

Job creation in the US remained robust last month, despite turmoil in the banking sector and the impact of higher borrowing costs.

Employers added 253,000 jobs, which was better than many analysts had expected.

The unemployment rate fell to 3.4%, returning to a multi-decade low.

The gains were a reminder of the resilience of the US labour market, which has held up in the face of aggressive efforts by the US central bank to cool the economy.

The Federal Reserve has raised its benchmark interest rate from near zero to between 5% and 5.25% in little over a year, an abrupt shift aimed at curbing prices that were soaring last year at the fastest pace in decades.

These increases have sharply increased the cost of buying a home or car, as well as making it more expensive to borrow to expand a business or take on other debt. In theory, that should reduce demand, leading the economy to slow and easing the pressures pushing up prices.

But while job gains have moderated since last year, they continue to outpace the numbers that economists estimate are needed to keep up with population growth.

In its Friday report, the Labor Department said hiring had been weaker than previously estimated in February and March.

But last month, job creation picked up again, while wages were up 4.4% from a year ago.

"Today's report clearly suggests weakening labour markets - most obviously in the downward revisions of prior months data - but from a very strong starting point," said Ronald Temple, chief market strategist at Lazard.

Many economists expect the US economy to fall into recession later this year, noting big slowdowns in key sectors such as housing.

Recent weeks have seen a flurry of job cut announcements by big companies such as Facebook-owner Meta, Amazon, entertainment giant Disney, banks and other firms.

The rate rises also contributed to turmoil in the banking sector, which has been rocked by the most serious string of failures since the 2008 financial crisis.

But the head of the US central bank, Jerome Powell, said this week that the continuing strength of the labour market made him hopeful that this time would be "different" - and the US could avoid a downturn that would throw millions of people out of work.

"That would be against history," he acknowledged. "I fully appreciate that."

Software engineer Brian Zovko was laid off from his job in the car industry in February.

He said he was surprised because his company had been posting strong profits. But more recently bosses had raised the prospect of cost cuts, noting that they were concerned about the impact of higher borrowing costs and a slowdown in the economy.

The 27-year-old, who lives in Texas, says he has been relying on savings and trying to spend cautiously. He said he sensed that the market has cooled over the past few months - but he remained hopeful he would find a new job shortly.

"I'm mildly optimistic that I should be able to get back on track," he said. However, he added, "it seems like there's a decent risk the economy gets worse".-bbc

Tata Steel warns of uncertainty over future of UK business

Tata Steel has warned that the finances of its UK business face "material uncertainty" given market conditions and the level of government support.

Tata said a stress-test of its European arm to assess the impact of a downturn had flagged concerns for the UK unit.

However, Tata Steel UK said it expected trading to pick up later this year.

The Department for Business said the government is providing support to protect the steel industry from "unfair trade and energy costs".

The UK business of India's Tata Steel employs about 8,000 people, with half at the Port Talbot steelworks in Wales.

In results published last week, Tata said that earnings at Tata Steel Europe - which includes the UK business - fell by more than 60% in the year to 31 March.

It added it had carried out tests to assess the potential impact of an economic downturn in Europe, given factors such as higher inflation and interest rates.

These tests found the outlook for the UK business would be "adversely impacted", but it added it was continuing to "implement various measures aimed at improving its business performance and conserving cash".

In July last year, Tata Steel said it would make a decision over the future of the its UK business in the next 12 months.

One uncertainty hanging over Tata Steel UK is what level of help it could get from the government.

The company is still in talks with the UK government over support to switch away from existing steelmaking processes to ones that emit less carbon.

Currently natural gas helps heat the blast furnaces and carbon, in the form of coke, is used to make iron as part of the steel-making process.

Replacing those processes with electric arc furnaces could reduce carbon emissions significantly especially if the electricity is generated from renewable sources.

Reports have suggested that the firm will get £300m, although the cost of decarbonising the Port Talbot plant has been estimated at up to £3bn.

A decision on support is needed soon, as the life of Tata's blast furnaces are coming to an end and electric arc furnaces take between four and five years to build.

Steel industry warns of more job cuts without help

Government to offer £600m for green steel switch

Last month, Tata Steel UK told the Welsh Parliament that it wanted a "level playing field" with its European rivals to help it switch away from coal.

The company's director of decarbonisation, Huw Morgan, said German firm Salzgitter had received €1bn towards its decarbonisation plans. "That's half of the capital investment that we believe that they require to make the transition," he said.

The Department for Business said: "We consider the success of the steel sector a priority and will continue to work intensively with the industry to help secure a decarbonised, sustainable and competitive future."

In a statement, Tata Steel UK said that while it "starts the year at the bottom of the cycle with challenging market conditions given the difficult economic position in the UK and Europe, we ended 2022-23 with a positive cash balance and un-utilised financing facilities".

"We are expecting that this - along with specific actions to improve business performance - will ensure that we manage this period of downturn.

"We should then be well placed to optimise our production and delivery volumes in 2023-24 as market conditions improve in the latter half of the year."-bbc

Bunting, biscuits, beer - Brits spend on Coronation

The British public is refusing to let typical bank holiday weather spoil its Coronation plans and is gearing up for street parties and family celebrations.

Around £200m will be spent on food and drink this weekend, according to the Centre for Retail Research (CRR).

Supermarket chain Lidl said it had sold enough bunting to line the Coronation procession route 75 times over.

Party products and traditional British fayre are in high demand and brands are offering royal-themed ranges.

Overall the CRR expects consumers to add more than £1.4bn to the UK economy over the long weekend.

Tesco said it was on track to sell 675,000 pork pies and 300,000 pots of clotted cream.

Sales of quiches, the King's chosen Coronation dish, have leapt across the country - Aldi said it was selling more than 30 every minute and Waitrose said it had seen an increase of 25% in the last week.

Scones too are flying off the shelves - at Aldi they are up a massive 150%, Tesco expected to sell 600,000.

Dozens of products from pork pies and golden syrup to gin and elderflower cordial have gone purple and gold or tweaked their branding to feature Buckingham Palace, crowns and bunting. Ikea is offering a coronation chicken flavour sauce on its famous meatballs.

Tesco's Maheen Piracha said shoppers were in a mood to celebrate: "Judging by early sales, King Charles' Coronation is set to spark a feel-good factor with plenty of street and house parties."

No street party would be complete without a tipple - Tesco anticipated it would sell 180,000 bottles of Pimms and Asda said beer sales were expected to be 25% higher for the three-day weekend.

Sales of flags, bunting and paper plates have also sky rocketed - Asda said sales of Union Jack flags were up 227%, and Coronation cups were up 135%.

Aside from food and drink, millions is being spent on Coronation souvenirs and memorabilia. Owners of King Charles spaniels - and other breeds too - may be preparing to dress their pooch for the occasion, courtesy of Gateshead company Franky's Bowtique.

Founder Kerry Whitney said she had been "running around like a headless chicken" over the past fortnight to complete more than a thousand orders for crowns, bandanas and bow ties.

"We're busy at Halloween and Christmas anyway and we didn't know how popular it would be because everyone loved the Queen so much, but it's just snowballed," she said.

The CRR forecast £245.91m would be spent on Coronation coins, tokens and medallions, celebratory teapots, mugs, cups and other crockery.

Asda said its Coronation cushion and King Charles teapot had proven popular and it had sold 3,000 of each respectively. John Lewis said sales of its Coronation spoon were strong.

'Alive and kicking'

Halcyon Days holds a royal warrant and makes Coronation plates and souvenirs from its factories in Stoke on Trent and the Midlands.

Chief executive Pamela Harper told Radio 5 Live's Wake Up to Money demand had been "absolutely extraordinary" in the last few months.

"The whole royal memorabilia is still very much alive and kicking. We've got the gifting market and our international market in London driven by international tourists, particularly the Americans, coming in droves, coming to buy a piece to take home."

The CRR said spending by additional foreign tourists could be as high as £323m with much of it spent on accommodation, restaurants and shopping in London.

Extended pub opening hours over the bank holiday should provide a boost to the hospitality sector to the tune of £104m according to the Centre for Economics and Business Research.

"This would boost spending on any given weekend, but the special occasion of the Coronation itself should likely compound this by providing a special spending buzz, not unlike that seen during major events such as the Football World Cup," it said.-bbc

Ex-Uber security chief sentenced over covering up hack

Uber's former chief security officer has avoided jail and been sentenced to three years' probation for covering up a cyber-attack from authorities.

Joseph Sullivan was found guilty of paying hackers $100,000 (£79,000) after they gained access to 57 million records of Uber customers, including names and phone numbers.

He must also pay a fine of $50,000, and serve 200 hours of community service.

Prosecutors originally asked for a 15-month prison sentence.

Sullivan was also found guilty of obstructing an investigation from the Federal Trade Commission.

According to the Wall Street Journal, judge William Orrick said he was showing Sullivan leniency partly because this was the first case of its kind, but also because of his character.

"If there are more, people should expect to spend time in custody, regardless of anything, and I hope everybody here recognises that," he said.

The hack

Sullivan began his role as Uber's chief security officer in 2015.

In November 2016, the attackers who targeted Uber emailed Sullivan and told him they had stolen a large amount of data, which they would delete in return for a ransom, according to the US Department of Justice (DOJ).

Staff working for Sullivan confirmed data, including records of 57 million Uber users and 600,000 driving licence numbers, had been stolen.

According to the DOJ, Sullivan arranged for the hackers to be paid $100,000 in exchange for them signing non-disclosure agreements to not reveal the hack to anyone.

The hackers were paid in December 2016, disguised as a "bug bounty" - a reward used to pay cyber-security researchers who disclose vulnerabilities so they can be fixed.

The hackers subsequently faced conspiracy charges in 2019 and pleaded guilty.-bbc

HSBC foils plan by major investor to break up bank

HSBC has fought off an attempt by its biggest shareholder to break up the bank during a frequently tense annual general meeting.

Chinese insurer Ping An has been trying for more than a year to split the bank.

On Friday it failed to gain the backing of any other major shareholder as investors voted to reject the proposal.

HSBC chairman Mark Tucker said the result "draws a line" under a long-running debate about the bank's structure.

Despite being headquartered in London, the large majority of HSBC's profits are made in Asia.

Ping An, which holds an 8% stake in HSBC, wants the lender to separate out its Asian business.

It argues that the bank's profitable Asia operations are subsidising other parts of the bank that are not performing as strongly. Splitting HSBC would also set it free from the requirements of UK regulators.

Ping An and Ken Lui, an individual Hong Kong-based shareholder in HSBC, needed to secure 75% of all votes cast at the AGM to force through the split.

They failed to get those numbers, with no other major institutional investor backing the plan.

Mr Tucker told the AGM a break-up of the bank would undermine its global strategy, and would be both risky and costly.

"It would not be in shareholders' interests to split the bank," he told the AGM in Birmingham, which was frequently interrupted by climate change activists who claim HSBC is not doing enough to reduce its financing of polluting industries and businesses.

At the meeting, Mr Lui vowed to fight on with the break-up plan, saying he would keep pressure on HSBC's management and would lobby the bank's many small shareholders in Hong Kong.

It is not clear what Ping An's next step will be but there are bigger factors at play beyond making a return on its investment.

Ping An is partly owned by the Chinese state and, according to some analysts, could be representing Beijing's political aims as much as its shareholders' financial interests.

Hong Kong is by far China's most important financial hub and HSBC is the centrepiece institution.

Some argue that to Beijing, the idea of simply leaving the city's most valuable asset in Western hands could be a risk that is too big to take.

The example of Russia's economic isolation following the invasion of Ukraine is a case in point.

Should a similar geopolitical crisis emerge involving China - not an impossibility given the tensions around Taiwan and the South China Sea - having a grip on one of Asia's top banks will be vital.

In this sense, HSBC is dealing with an existential crisis that dates back to its founding in Hong Kong under British rule.

For most of its 158-year history, the Hong Kong and Shanghai Banking Corporation - as it was originally known - has had a long-distance relationship with the UK.

In fact, HSBC only became a major UK High Street player in the 1990s, when it bought Midland Bank and moved its headquarters to London in 1993. To this day, HSBC even prints the bank notes in Hong Kong.

"There is a jarring gap between HSBC's centre of gravity in Hong Kong and its subservience to regulators in Britain," says Steve Vickers, a corporate risk consultant based in Hong Kong. "This is an accident of history and a remnant of the colonial era."

A small taste of this came in 2020, when the Bank of England directed HSBC and other British lenders to stop paying out dividends to shareholders because of the pandemic.

This enraged ordinary shareholders in Hong Kong, who own about a third of HSBC's shares and many of whom rely on the payments for their retirement funds.

>From the Chinese mainland perspective, it was a simple but stark illustration of the power of officials on the other side of the world. Asia may generate the money, but ultimately London calls the shots.

This is not a situation either Ping An or China wants to be in. It may explain why Ping An is pushing HSBC so hard and so publicly with the kind of shareholder activism that is normally associated with Western investors.

"A more assertive China is now unafraid to project itself in the international business arena," says Steve Vickers. "But they have to tread very carefully with HSBC - the stakes are high."-bbc

CBI hires ethics consultancy to overhaul culture

The CBI has hired a team of ethics advisors to help overhaul its operations, following allegations of serious sexual misconduct by staff.

The business lobby group's new head Rain Newton-Smith told members on Friday it had taken on the consultancy firm Principia Advisory.

The CBI is trying to claw back its reputation following the allegations, which include rape.

But it has already suffered an exodus of members.

Principia Advisory bills itself as a "leading advisor on organisational ethics".

Its website suggests that ethical crises should be dealt with using a "whole systems' approach" involving accountability by identifying individuals responsible, followed by "deeper changes".

The allegations at the CBI include claims of harassment and sexual assault including two allegations of rape, one at a summer party held by the group in 2019, another at one of its overseas offices.

The City of London Police is currently investigating the rape allegations.

The CBI has suspended day-to-day operations pending an extraordinary general meeting scheduled for 6 June, at which it is expected to outline a new strategy.

When the first allegations of harassment and sexual assault emerged in early April, the lobby group asked the law firm Fox Williams to investigate.

In response to Fox Williams' report, the CBI admitted it had hired "culturally toxic" staff and had failed to fire people who sexually harassed female colleagues. That had led a "very small minority" of staff to believe they could get away with harassment or violence against women, the group said.

An earlier report by the law firm led to the dismissal of Ms Newton-Smith's predecessor, Tony Danker. He was the subject of separate complaints of workplace misconduct, for which he has apologised.

The CBI said Ms Newton-Smith had spoken to more than 250 members and former members in an effort to shore up support.

But some of its most high profile members have deserted the organisation, including John Lewis and BMW. Others such as Tesco and Sainsbury's have suspended their engagement.

The government has also suspended any activity with the lobby group, with Chancellor Jeremy Hunt saying there was "no point" engaging with the CBI when its own members had deserted it.-bbc

White House: Big Tech bosses told to protect public from AI risks

Tech bosses were summoned to the White House on Thursday and told they must protect the public from the dangers of Artificial Intelligence (AI).

Sundar Pichai of Google, Satya Nadella of Microsoft, and OpenAI's Sam Altmann were told they had a "moral" duty to safeguard society.

The White House made it clear that it may regulate the sector further.

Recently launched AI products like ChatGPT and Bard, have captured the public's imagination.

They offer ordinary users the chance to interact with what is known as "generative AI", which can summarise information from multiple sources within seconds, debug computer code, write presentations, and even poetry, that sound plausibly as if they might have been human-generated.

Their rollout has sparked renewed debate over the role of AI in society, by offering a tangible illustration of the potential risks and rewards of the new technology.

Technology executives gathered at the White House on Thursday were told it was up to firms to "ensure the safety and security of their products" and were warned that the administration was open to new regulations and legislation to cover artificial intelligence.

Sam Altman, chief executive of OpenAI, the firm behind ChatGPT, told reporters that in terms of regulation, executives were "surprisingly on the same page on what needs to happen".

US Vice President Kamala Harris said in a statement following the meeting that the new technology could pose a risk to safety, privacy and civil rights, although it also had the potential to improve lives.

The private sector had "an ethical, moral, and legal responsibility to ensure the safety and security of their products", she said.

The White House announced a $140m (£111m) investment from the National Science Foundation to launch seven new AI research institutes.

Calls for the dramatic rise in emerging AI to be better regulated have been coming thick and fast, from both politicians and tech leaders.

Earlier this week, the "godfather" of AI, Geoffrey Hinton, quit his job at Google - saying he now regretted his work.

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

In March, a letter signed by Elon Musk and Apple founder Steve Wozniak, called for a pause to the rollout of the technology.

And on Wednesday, the head of the Federal Trade Commission (FTC), Lina Khan, outlined her views on how and why AI needed to be regulated.

There are concerns that AI could rapidly replace peoples' jobs, as well as worries that chatbots like ChatGPT and Bard can be inaccurate and lead to the dissemination of misinformation.

There are also concerns that generative AI could flout copyright law. Voice cloning AI could exacerbate fraud. AI generated videos can spread fake news.

However, advocates like Bill Gates have hit back against calls for an AI "pause" saying such a move would not "solve the challenges" ahead.

Mr Gates argues it would be better to focus on how best to use the developments in AI.

And others believe there is a danger of over-regulating - which would give a strategic advantage to tech companies in China.-bbc

Unionised US Apple Store proposes asking for tips

Imagine this: You've shattered your iPhone's screen for the second time and rushed to your nearest Apple Store to have it repaired.

The team at Apple's Genius Bar hands you your phone back within hours - with a hefty bill. But as you proceed to make the payment, there's a new option on the check-out menu: Would you like to add a tip?

An unusual request, but it could soon become real.

Employees at the first-ever unionised Apple Store in the US are proposing to provide customers with the option to tip for service.

The proposal, first reported earlier this week by Bloomberg, has sparked debate about tipping culture in the United States and so-called "tipping fatigue".

In a series of tweets, the union acknowledged the idea could be "a little controversial".

"Apple employees everywhere can tell you that they are already being offered tips by customers," the union representing the store in suburban Baltimore said.

As it stands, if an Apple employee accepts a tip, he or she could be fired. The new proposal would create a system that allows "occasional" customers to reward the team without fear of termination, according to the Union.

Making customers feel "guilt tipped" when they decline to add a few extra dollars to a purchase, is part of a business model that's emerging around American tipping culture in the wake of the pandemic, say experts.

"It's tipping everything, everywhere, all at once," said Thomas Farley, an etiquette expert popularly known as 'Mister Manners'.

The Towson, Maryland Apple Store became the first in the country to unionise in 2022. Apple store employees, and its labour union, The Coalition of Organised Retail Employees (CORE) are currently engaged in contract negotiations with the tech giant and said they expect "there will be compromises made".

The tipping scheme proposed would offer customers options ranging from "no tip, 3%, 5%, custom amount", the Union said. Any funds collected through tips would be split among the team members.

'Tipping invasion'

But on social media, backlash to the proposed tipping scheme was swift, with many noting that tips are generally offered to workers who make low hourly-wages.

Consumers tipped an average 19.6% at full-service restaurants, according to a report from Toast, a point-of-sale service platform.

Etiquette expert Mr Farley said technology is the primary driver behind this "tipping invasion". As more companies adopt digital payment systems, like Square and Toast, consumers are often being prompted to add a tip after completing a transaction.

"My fear is that we're rapidly advancing toward a culture where we're expected to tip for absolutely everything," he said.

A survey of American tipping culture found more than half of Americans said they gave a tip "when they normally wouldn't" because they were prompted by the check-out system.

Mr Farley said the rise in demand for tips has become commonplace, in part, because businesses have used the prospect of tips to entice workers in a tight labour market instead of offering higher wages.

Generally, these workers make less than minimum wage and rely on tips to make a living, he said.

"These are instances where I would absolutely not be miserly, as long as your budget allows," he said, but in situation where you know the server is likely making above minimum wage, a tip is discretionary.

"Just because it's there on a screen doesn't mean you have to, although I know hitting 'no tip' makes you feel like Scrooge," he said. "That's the idea of a guilt tip."-bbc

Kanye West Yeezy loss is hurting us, admits Adidas

Adidas has said the ending of its collaboration with Kanye West is "hurting" the business, with sales in North America hard hit.

The sportswear giant cut its ties with the designer and rapper, known as Ye, late last year after he posted anti-Semitic comments on social media.

West designed trainers under the Yeezy brand and Adidas said the loss of the business cut sales by €400m (£350m) in the first quarter of the year.

Overall, total revenue fell by 1%.

Despite the dip, the figures were better than analysts had been expecting and Adidas said that sales were up 9% when the impact of the Yeezy business was excluded.

Adidas said it was benefiting from the current trend for "terrace" style trainers and was seeing "extraordinary demand" for its Samba, Gazelle and Campus brands.

Terrace styles are those that were originally popular among football fans in the 1980s, when supporters first embraced designer fashion brands such as Fila and Sergio Tacchini.

While Adidas said it had a limited supply of such shoes at the start of the year, it plans to increase production in the coming months.

'Hurting'

In its latest results, Adidas said sales in North America had fallen by 20% as the region was particularly affected by the ending of the Yeezy business.

Adidas chief executive Bjorn Gulden said the loss of Yeezy is "of course hurting us".

The company scrapped its tie-up with West in October last year following the rapper's anti-Semitic comments. At the time, the firm said: "Adidas does not tolerate antisemitism and any other sort of hate speech."

Adidas said that if it decided not to "repurpose" its remaining unsold Yeezy stock, this would hit its operating profit by €500m this year.

The company still has to decide what to do with the remaining products, and whether it will sell them or scrap them.

Mr Gulden the firm was narrowing its options on the Yeezy stock, and the company was getting "closer and closer" to a decision.

Pippa Stephens, senior apparel analyst at GlobalData, said that while Adidas was "unable to reverse its past mistakes, it must now quickly come to a decision on what to do with its remaining Yeezy stock, to avoid angering its investors even further".

"Should it decide to sell it, it risks damaging its brand reputation even further, so must ensure it does so sensitively to avoid upsetting customers."

The company is being sued by investors who claim Adidas knew about Kanye West's problematic behaviour years before it ended their partnership.

Investors allege Adidas failed to limit financial losses and take precautionary measures to minimise their exposure.

In response, Adidas said it rejected "these unfounded claims", adding that it would take "all necessary measures to vigorously defend ourselves against them".

Despite the drop in overall sales during the first three months of the year, Adidas reported a higher-than-expected operating profit of €60m.

Strong demand for its football, running and tennis shoes helped footwear revenues grow by 1%.

However, Mr Gulden - who joined Adidas at the start of this year from rival Puma - warned that 2023 would be "a bumpy year with disappointing numbers".

He also said that Adidas was aiming to make sure that 50% of the products it sells in China are designed specifically for the Chinese market.

China is the world's second largest sportswear market, but Adidas has been falling behind its rivals there.

In the first three months of the year, its sales in China were down 9.4% from a year earlier.-bbc

Tanzania: Kwala Dry Port Construction Thrills DRC Officials

A DELEGATION of Customs Officers from the Democratic Republic of Congo (DRC) led by their Director of Customs and Excise Mr René Kalala Masimango has praised the sixth phase government led by President Samia Suluhu Hassan and the Tanzania Ports Authority (TPA) for the completion of Kwala Dry Port in the Coastal Region.

Mr Masimango who is in-charge of the Haut Katanga, Lualaba, Tanganyika and Lomami provinces made the remark on Friday when he visited the dry port to see its progress.

"We commend you for the good work, among the provinces which are under my supervision Haut Katanga receives 80 per cent of the DRC cargo which pass through Dar es Salaam Port ... this tour is very important to us to see its readiness to handle our cargo, get firsthand information and activities being done here," he said.

On his part, Tanzania Ambassador to the DRC, Said Juma Mshana noted that the purpose of the tour was for business improvements, especially strengthening trade between the two countries.

While at Kwala Dry Port, the delegation visited and inspected the 10 hectare area allocated by the government for Handling DRC cargo passing through the Dar es Salaam Port.

On his part TPA Property Manager, Mr Alexander Ndibalema said that upon completion the port will help to reduce congestion at Dar Port by 30 per cent and increase government revenue through the cargo served at the port.

The completion of the dry port which has reached 95 per cent is a result of good leadership of the sixth phase government that pumped in 83.247bn/- for the construction and development of the port.

The project involved construction of a 15.5 kilometres concrete road Morogoro Highway at Vigwaza area with the Kwala Dry Port. The port will also have rail, water, road, electricity and community infrastructures that will simplify operations at the port and the project area in general.

The operations of Kwala Port will help to reduce congestion at Dar Port because it will store on-transit cargo to neighbouring countries of Burundi, Rwanda, DR Congo, Uganda, Zambia and Malawi.

The ruling party Chama Cha Mapinduzi's (CCM) Election Manifesto directs the government to develop transport infrastructures of all ports, since they are crucial in stimulating social economic development of the country.

The Third Five-Year Development Plan 2021/22 - 2025/26 has also stressed the importance of improving the performance of the ports in the country.

The impending functioning of this dry port, located in Coast region, would usher in a new era of carrying cargo by train from the Dar es Salaam Port, thus, relieving roads from catering for heavy cargo trucks from the country's mega port.

Currently, long vehicles congest Dar es Salaam every day to load containers before shipping them to the neighbouring countries, and end up causing heavy traffic jams in the city roads.

-Daily News.

South Africa: President Ramaphosa Deploys 800 SANDF Members to Protect Eskom Power Stations

President Cyril Ramaphosa has authorised the deployment of 880 members of the South African National Defence Force (SANDF) to safeguard a number of Eskom power stations around the country.

The President has informed Speaker of the National Assembly, Nosiviwe Mapisa-Nqakula, and Chairperson of the National Council of Provinces (NCOP), Amos Masondo, in writing.

According to the statement released on Saturday, the soldiers work with the South African Police Service (SAPS) for the prevention and combating of crime and maintenance and preservation of law and order in the Republic of South Africa under Operation Prosper.

"Members of the SANDF employed will assist the SAPS in protecting Eskom power stations around the country where sabotage, theft and other crimes may threaten the functioning of power stations and the supply of electricity."

The deployment is from 17 April 2023 to 17 October 2023.

Previously, the Presidency said 2 700 members of the SANDF were employed to assist the SAPS in protecting Eskom power stations under Operation Prosper from 17 March 2023 to 17 April 2023.

"The current employment is authorised in accordance with the provisions of Section 201(2) (a) of the Constitution of the Republic of South Africa, 1996."

Meanwhile, the expenditure expected to be incurred for this exercise is over R146 million.

-SAnews.gov.za.

Africa: Germany's Scholz Urges More Cooperation During Africa Trip

Wrapping up his trip to Kenya and Ethiopia, German Chancellor Olaf Scholz stressed the need for more cooperation, ranging from climate and energy policies to migration of skilled labor to Europe.

There was a clear message from Olaf Scholz during his 3-day trip to Ethiopia and Kenya -- Berlin wants to build partnerships on eye level with countries of the Global South.

The German chancellor stressed that today's world was a multipolar place and that he made a strategic decision to visit the African continent for a second time since taking office 17-months ago.

Germany needs to make friends on the continent. China has already gained massive influence in Africa, for instance with big infrastructure programs. And Russia has also started a charm offensive to gain sway. Hence, the US and other Western countries are trying to step up their game.

On a visit to Ethiopia in January, the Chinese foreign minister said that Africa did not need bloc competition but rather solidarity and cooperation. The African Union has already made clear it refuses to be seen as an arena for others to compete for influence. So even though there was no official mention of China during the Scholz trip, it was still the elephant in the room.

An "inspiring climate champion"

Kenya is not one of the countries likely to turn away from the West. This year, Germany and Kenya celebrate 60 years of diplomatic relations -- West Germany was the first country to officially recognize the Republic of Kenya in 1963.

On the last day of his 3-day trip to Ethiopia and Kenya, Olaf Scholz visited Olkaria, the largest geothermal power plant in Africa around 120 kilometers north-west of Nairobi. It covers 50% of Kenya's electricity needs and Germany has been supporting its development for the past two decades.

It stands as a symbol for Kenya's pioneering role on the continent, especially in the energy sector. The country's president, William Ruto, has set the ambitious goal to fully switch to renewable energies in only a few years.

"I am very impressed that Kenya wants to achieve its goal of going from 90% to 100% renewable electricity production by 2030 even faster," the German chancellor said.

Scholz said that Germany was ready to support Kenya in that effort and intended to strengthen its energy and climate partnership with the East African country. The German chancellor called it an "inspiring climate champion."

About a dozen business representatives have joined Scholz on his trip. Kenya being Germany's most important trading partner in the region, there are of course also hopes that German companies will find lucrative investment opportunities in Kenya's energy sector.

AU to become a G20 member soon?

Another step towards engaging on eye level was Scholz' announcement on the first day of his trip to support G20 membership for the African Union.

"We want to support the African Union getting a seat in the G20, so that it can participate and have a say in decision-making. Africa must play a bigger role in international relations, a role that does justice to the continent and its growing population", Scholz said during a joint press conference, noting he was "convinced" the AU would get a seat at the G20 soon.

It's something that would be a big step forward for African countries. For decades, they have been trying to get more international representation. With its 55 member states, the African Union represents the interests of roughly 1.4 billion people. The AU would have a say especially regarding issues such as climate change, that affect many African nations.

Peaceful resolution of Sudan conflict

In Addis Ababa, Scholz also met with Ethiopian Prime Minister Abiy Ahmed and Tigray's President Reda Getachew. There was no press conference but according to a statement by the German government, Berlin supports Ethiopia's transitional justice efforts after the devastating war in Tigray that ended last November.

The current crisis in Sudan was also on the agenda and Scholz stressed Germany's support for a peaceful settlement of the conflict and said he appreciated Kenya as an anchor of stability.

"Kenya is an established democracy and as such the country is a stabilizing player in a very troubled region. We really appreciate the mediation efforts Kenya has put in place over the past few years," Scholz said.

Migration and employment

The German and Kenyan leaders also discussed migration and employment, with Scholz seeing opportunities for Kenya to help with Germany's skilled labor shortage.

"We see great potential in Kenya for skilled labor migration in many areas of our economy," he said.

The German chancellor explained Berlin wanted to strengthen regular labor migration while at the same time reducing irregular migration.

"This is a win-win situation for the countries that participate," he added, with Ruto backing the proposal.

"There is an opportunity for close to 250,000 people to work in Germany from different countries," Ruto said during the joint press conference in Nairobi. "We would value that opening, but we would also undertake that any persons from Kenya who do not measure up to good standing and are against the law in Germany, would be returned to Kenya."

Kenya boasts a large number of skilled workers in the IT and digital sector, with Nairobi being dubbed the "Silicon Savannah" due to its innovative start-up scene.

For Germany, the need for skilled workers is urgent. Labor Minister Hubertus Heil said in parliament last week that all the stops must be pulled to secure jobs and skilled labor, adding that "if we don't do that, we will be short of seven million workers and skilled workers by 2035."

Africa: IMF Chief Advocates Africa Continental Free Trade Area

Nairobi — The head of the International Monetary Fund is urging African countries to implement the Africa Continental Free Trade Area.

Speaking Friday in Nairobi, Kristalina Georgieva said intracontinental trade could grow by 53% if steps are taken to remove trade barriers and improve logistics and transportation.

Georgieva said there are many benefits to be gained from the Africa Continental Free Trade Area, or AfCFTA. But first, she said, reforms are needed to capture the full advantages, including what the IMF sees as the number one priority -- reducing trade barriers, such as tariffs.

"If Africa decides to follow our science for example and bring trade barriers from 6% down to 1%, that would be a major step," she said.

She also wants to see countries use fewer non-trade barriers, like quotas and embargoes, attempt to integrate into global supply chains and diversify their economies.

Ngozi Okonjo Iweala, head of the World Trade Organization, praised the agreement, but said that to make it work, it's imperative to reduce the cost of trading within and outside Africa.

"Trading with the outside, that cost is equivalent to a tariff of 350%, which is 1.5 times larger than what you find in developed countries," Iweala said.

But, Iweala said, trading within Africa is even worse.

"The barriers ... are equivalent to 435% tariffs," Iweala said. "So, unless we can deal with these costs and bringing them down, it will be very difficult for us to actualize a good implementation of the Continental Free Trade Area."

But with many countries just recovering from the negative effects of the COVID-19 pandemic, reducing tariffs comes with its own problems.

"For some countries in the continent, they actually depend on those tariffs and customs duties for the bulk of their revenue, so it's going to be a real challenge," Iweala said. "That is why for the least developed countries for example, the agreement is that they have a longer period of time to implement because of the recognition that it is difficult, that it is not going to happen overnight."

The agreement establishing the AfCFTA was signed in 2018.

The AFCFTA is the world's largest free trade area, according to the bloc, bringing together the more than 50 countries of the African Union and eight regional economic communities, such as ECOWAS and the East African Community.

So, said the IMF chief, it might take some time to realize its full potential.

"We are not talking about moving from today to tomorrow, we are talking about the process," Georgieva said. "We just have to have the ambition to pursue reduction of tariffs. ... There is still quite a lot that could be done to bring tax revenues up by improving tax collections and tapping into higher income in a fairer and more prudent way."

Last year, Kenya shipped its first batches of locally made car batteries and tea to Ghana.

Njuguna Ndung'u, the cabinet secretary at the Kenyan National Treasury, celebrated but noted that the batteries took eight weeks to be transported from Nairobi to Accra.

"Why did it take eight weeks? It's because of the infrastructure problem we have, the connectivity is a problem," Ndung'u said. "Because you have an opportunity to trade, you look for opportunities in terms of how to solve the problems in the process and do you make that solution sustainable? Right now, I wouldn't say taking eight weeks is sustainable but it's worth the try."

In the meantime, he said, "We are going to look into how to improve connectivity."

-VOA.

Invest Wisely!

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INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

Africa Day

May 25

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.

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