Major International Business Headlines Brief::: 22 February 2024

Thu Feb 22 10:38:37 CAT 2024

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Major International Business Headlines Brief:::  22 February 2024 

ü  Nigeria: Exclusive - Forex Crisis: Nigeria Plans Clampdown On Binance,
Other Crypto Firms

ü  Uganda: Gen Katumba Asked to Fast-Track Kampala-Jinja Expressway

ü  Nigeria: Workers Begin Indefinite Strike in Niger State Today

ü  Kenya: Treasury PS Kiptoo Says Kenyans Are Not Overtaxed

ü  Liberia: Hike in Price of Rice Claims Lawmakers' Attention

ü  Liberia: Finance Minister Holds Crucial Talks With IMF Mission

ü  Africa: Ethiopia Finalizes Preparations to Trade Under AfCFTA

ü  Kenya: Bolt Discusses Welfare, Safety and Regulatory Concerns With
Drivers

ü  African Development Bank - High Cost of Living in Africa Could Cause
Unrest

ü  Eswatini Losing the Fight Against Corruption, According to Its Citizens

ü  Japan's main stock index closes above 1989 record high

ü  Nvidia: Boss says AI at 'tipping point' as revenues soar

ü  Boeing 737 Max boss out after blowout

ü  Google to fix AI picture bot after 'woke' criticism

ü  HSBC: Bank's pre-tax profits soar fuelled by high interest rates

 <https://www.cloverleaf.co.zw/> Nigeria: Exclusive - Forex Crisis: Nigeria
Plans Clampdown On Binance, Other Crypto Firms

Binance has had similar aaccusations of currency manipulation and unethical
conduct leading to sanctions in many countries and an ongoing lawsuit in the
United States.

The Nigerian government is considering blocking the online platforms of all
crypto firms to avert what it considers continuous manipulation of the forex
market and illicit movement of funds, officials with knowledge of the policy
option have told PREMIUM TIMES.

The recent unprecedented weakening of the Nigerian currency has seen the
naira falling to all-time low of N1,800 to a dollar in the parallel market.

Presidency and regulatory sources say the government decided to move against
Binance and other crypto firms following reports that currency speculators
and money launderers were using them to execute criminal activities.
Authorities believe the 'criminal activities' going on on platforms are
contributing significantly to the weakening of the naira.

Binance, a digital assets platform, serves as a window for peer to peer
transaction allowing users to advertise interest to sell or buy currencies
of their choice.

In September 2023, Nigeria's Securities and Exchange Commission (SEC) placed
a disclaimer on Binance Nigeria Limited, saying the platform was "neither
registered nor regulated by the Commission and its operations in Nigeria are
therefore illegal".

Despite the warning by the regulatory agency, the firm continued its
operation, attracting huge patronage especially among urban youths and
suspected speculators and money launderers.

Aside suspicions of economic sabotage, officials also speak of national
security concerns as the platforms are often patronised by other criminal
groups including for payment of ransom.

Law enforcement sources say the digital asset platforms are also routinely
deployed for manipulation of forex values through fake deals that serve to
prop up values or cause a fall.

A source at the Economic and Financial Crimes Commission (EFCC) involved in
probing criminal complaint against digital asset platforms, who was however
not authorised to speak to the press, described the process as a
"sophisticated heist against the Nigerian economy".

According to her, by allowing simultaneous opening of buy and sell windows
for a single user, manipulators often fake interest to sell dollars which
they then buy at a speculated rate to themselves through the buy window.

"This therefore gives the dollar a fake value against the naira which then
sets a frenzy and mislead the market. This fake price is then often quoted
by BDCs who raise their prices to meet the Binance benchmark even without
any corresponding demand in that segment," she said.

A senior executive at the Central Bank of Nigeria (CBN) described as
"troubling" the bearish downward trade of the naira against the dollar in
the last 10 days, attributing it to artificial devaluation caused by the
speculative sites.

"Through manipulative rent seeking, Binance's global reach results in higher
USD to NGN exchange rates often being used as a benchmark for currency
trading, misleadingly devaluing the Naira in global markets."

But he added that trading on the platform is encouraged by activities of
money-launderers and terrorist financiers "who have no qualms with the
arbitrage".

"We started noticing this sharp trend from February 9, and since then it has
caused significant devaluation of the naira against the USD. This is simply
criminal," he said.

Binance has had similar accusations of currency manipulation and unethical
conduct leading to sanctions in many countries and an ongoing lawsuit in the
United States.

If the government decides to invoke a ban on the digital asset trading site
it would be treading the path of countries like Malaysia, France and Malta,
among others.

The Office of the National Security Adviser (ONSA) had announced Tuesday
that it was joining forces with the Central Bank of Nigeria to clamp down on
currency speculators and economic saboteurs.

The Head of Strategic Communication at ONSA, Zakari Mijinyawa, hinted in his
Tuesday statement that individuals and organisations involved in wrongful
activities in Nigeria's Forex market

identified, investigated and penalised.

Contacted on Thursday night on the planned clampdown on Binance and other
crypto firms, Mr Mijinyawa said he was at an "important meeting". He did not
answer or return subsequent calls made to him.

Binance could not be reached Wednesday morning. Multiple calls to a customer
service number listed for it rang out unanswered.

- Premium Times.

Uganda: Gen Katumba Asked to Fast-Track Kampala-Jinja Expressway

The Speaker of Parliament, Anita Among, has renewed a call to the Minister
of Works and Transport, Gen Edward Katumba Wamala, to fast-track the
commencement of works on the 77 km Kampala-Jinja Expressway.

Speaker Among made the call while chairing Tuesday's plenary sitting.

"The loan was approved, and since 2020 nothing has taken place," she said.
"We were told that the issue is with project affected persons."

Gen Katumba explained that works on the expressway have stalled due to the
lengthy process of acquiring land and compensation of the project affected
persons.

"We are now at the stage of contracting," Katumba said.

"There are a number of steps which we have to undertake, this is not a
simple project, it is a Public Private Partnership and there are so many
stages that we have to qualify before it comes to maturity.

"We have to pay more than 90 percent of the project affected persons, we
have to resettle people who even by law are not allowed to be resettled. The
elderly who are not allowed to take the money we have to prepare for them to
have a better life, that takes time."

Katumba noted that the Attorney General has acquired the partial risk
agreement, which is the last stage of procuring a contractor.

"That means that now we can put out the project for contracting because most
of the hurdles have been overcome. We are now in the process of advertising;
we could not advertise without clearing the hurdles. You must advertise when
you have enough land to give to the contractor," he said.

He also informed the lawmakers that government has secured all the equipment
required for maintenance of roads across the country.

The minister, however, said that the supplier is still waiting for the
balance of Shs6 billion required for full procurement of the equipment.

"Ninety percent of equipment is in the country. The supplier cannot release
equipment before all the money is paid," he said.

This was after Dan Atwijukire, Kazo County MP, raised concern over failure
by government to fulfil commitments of providing districts with road
maintenance equipment.

"The last commitment was that Shs6 billion was released for contractors to
buy road maintenance equipment but no money. If the ministry has failed to
get money, let them go on local radios and explain to Ugandans otherwise if
we continue to appropriate and no releases are made, we are injecting air to
the economy," he said.

Speaker Among gave the minister two weeks to present a comprehensive
statement on the status on road works across the country.

- Nile Post.

Nigeria: Workers Begin Indefinite Strike in Niger State Today

The organised labour in Niger State has announced an indefinite industrial
action, scheduled to begin today, Wednesday.

In a letter addressed to the Niger State government through the office of
the Secretary to State Government and jointly signed by the state chairman
of the NLC, Idris A. Lafene, and the state chairman of the TUC, Ibrahim
Gana, the organised labour said the industrial action would last until the
government resolved all the outstanding disputes between it and the
organised labour.

The labour has asked the state government to reverse all political
appointments as Executive Directors of Finance, Operations and
Administration in agencies.

It also asked the government to reverse the appointments of chairmen,
members and permanent commissioners of the Local Government Service
Commission and Civil Service Commission, as well as the appointments of
directors general of some agencies.

Other demands include "a clear statement by the government on payment of the
wage award."

The organised labour, however, warned the state government against the
appointment of civil servants that are not qualified as permanent
secretaries while asking the government to withdraw the appointment of a
vice principal on secondment as permanent secretary to allow for career
progression from within.

The organised labour also warned the state government to desist from
victimising teachers and members of the educational sector following the
recent primary school's debate in Agaie, in which the government alleged a
pupil had used vulgar and violent language against the federal government.

The memo partly reads, "We wish to formally inform the government that
effective 8am on Wednesday, the 21st February, 2024, Niger State workers
shall commence an indefinite strike action until our demands are
comprehensively met."

- Vanguard.

Kenya: Treasury PS Kiptoo Says Kenyans Are Not Overtaxed

Nairobi — National Treasury Permanent Secretary (PS) Chris Kiptoo has said
that Kenyans are not overtaxed amid an overtaxation outcry.

PS Kiptoo gave an example of regional countries that he said have more
aggressive taxes than Kenya.

For the state to raise more revenue, he said that all Kenyans must pay taxes
promptly.

"We think there is scope for us to really raise revenue because there are
many people not paying taxes. People are saying we are overtaxed, I don't
think we are," Kiptoo said yesterday during the Cabinet retreat in Naivasha.

Kiptoo alleged that there are 20 million Kenyans currently registered by the
Kenya Revenue Authority (KRA), but only 8.5 million of the pins are active.

Even the 8.5 active pin users are not paying taxes as required, the PS
lamented, making the taxman unable to meet its annual targets.

The Kenya Kwanza administration has previously come under sharp criticism
over its tax policies that some quotas feel are oppressive, including the
controversial Housing Levy that continues to spark debates in the country.

The Head of State has, however, in several instances defended the move to
scale up taxation, adding that it is the only way to stabilize the economy.

"This moment demands singular courage. Our commitment is under test, only
bold decisions will enable us make the best of these opportunities to unlock
the possibility of the Kenya we all want," said the president earlier.

- Capital FM.

Liberia: Hike in Price of Rice Claims Lawmakers' Attention

The Plenary of the Liberian Senate has cited the Minister of Commerce and
Industry Amin Modad to state reasons behind the hike in the price of rice,
despite his latest pronouncement reducing the price of the commodity on the
local market.

Rice is Liberia's staple food.

It can be recalled that on Friday, February 16, Minister Modad announced a
reduction in the price of rice from $17.00 to $16.75 per 25kg bag. The
pronouncement brought a great relief to consumers in the post-conflict
nation.

However, the Senate took the decision to cite Minister Modad to appear
before its Committee on Commerce to state reasons why his latest
pronouncement has not taken effect during regular sitting on Tuesday,
February 20.

The lawmakers' action stemmed from a concern raised by Gbarpolu County
Senator Gbotoe Kanneh.

Speaking during the sitting, Senator Kanneh observed that the pronouncement
of the reduction in the price of rice has not been effectuated, especially
in Gbarpolu.

"The Minister of Commerce announced a decrease in the price of rice. But to
my understanding, the price on the market has gone higher than ever before.
Yesterday, the price of rice was sold for L$4000."

She, however, failed to state the specific place a bag of 25kg rice was sold
for L$4000.

She stressed that as part of executing their oversight responsibility,
lawmakers must ensure that Minister Modad is invited to give reasons for the
current situation.

Also speaking, Montserrado County Senator Abraham Darius Dillon underscored
the need for Minister Modad to be cited by members of that August Body,
instead of being invited.

He observed that though the decision to reduce the price of rice is
laudable, the Minister of Commerce should appear to provide details on the
move.

"We should not invite the Commerce Minister but we should cite him. The
pronouncement made by this government which in our views is laudable is the
step taken towards our staple food [rice] to reduce the price by Twenty-five
cents and if we don't act now, the public will come to the senators and ask
what y'all know about the price of rice so let's cite him, let's know what
informed his decision and how long it will stay."

A motion for Minister Modad to be cited was filed by Maryland County Senator
Gbleh-bo Brown. He is expected to appear before the committee this week,
with a report expected to be forwarded to the Senate Plenary by next week.

- FrontPageAfrica.

Liberia: Finance Minister Holds Crucial Talks With IMF Mission

Finance and Development Planning Minister, Boima S. Kamara, has urged the
International Monetary Fund (IMF) to assist in identifying national issues
affecting macroeconomic stability to enhance the well-being of Liberians
across all government sectors.

Liberia, a nation striving to rebuild its economy, confronts numerous
challenges on its journey to sustainable development. The interaction
between the IMF delegation and the Liberian finance minister underscores the
importance of international support and collaboration in addressing these
obstacles.

Minister Kamara made these remarks on Tuesday, February 20, 2024, during a
courtesy visit by an IMF Review Mission led by the Deputy Director of the
African Department, Mr. Montfort Mlachila, to the Ministry of Finance and
Development Planning.

The meeting aimed to pinpoint key hurdles impeding the country's economic
growth and to devise potential solutions.

According to Minister Kamara, by identifying national development issues,
both teams can collaborate effectively to enhance national development and
growth across all sectors of the economy.

He emphasized the significance of the mission's visit, particularly amidst
the government's new development plans aligned with President Joseph Nyumah
Boakai's ARREST Agenda.

Kamara praised the IMF for its role as a strategic partner over the years,
supporting and executing impactful development projects nationwide.

"This visit reflects our shared commitment to achieving macroeconomic
stability in the nation," he stated.

In his remarks, the Deputy Director of the African Department, Mr. Mlachila,
stated that his team's visit aimed to review recent developments in Liberia
and engage with the new government on programs to address major challenges.

Mr. Mlachila expressed readiness for productive collaboration with the
government, asserting that they are prepared to support the country's
development plans in various capacities.

He revealed that the team intends to meet with stakeholders from ministries,
agencies, the Central Bank governor, and the private sector to foster
comprehensive engagement.

- Observer.

Africa: Ethiopia Finalizes Preparations to Trade Under AfCFTA

Ethiopia has set to exchange goods under the African Continental Free Trade
Area (AfCFTA) following endorsement of country's tariff line, Ministry of
Foreign Affairs announced.

In a presser held yesterday, Foreign Affairs State Minister, Ambassador
Misganu Arega expressed that leaders of the African Union member states have
endorsed Ethiopia's tariff line for goods to be traded under the AfCFTA.

"We have now the opportunity to join the nine countries which are
implementing the AfCFTA," he said. Tariff concessions have been made on
commodities on aggregate, he noted.

With all countries, including Kenya, South Africa, and Nigeria, Ethiopia has
agreed to lift 90 percent of tariff from AfCFTA goods while the rest seven
and three percent of commodities are under sensitive and exclusive products
list respectively, according to him.

Among others, the AfCFTA was mainly established by the AU to achieve
creating a single market for goods and services facilitated by movement of
persons in order to deepen the economic integration of African continent
compliance with the Pan-African Vision of "An integrated, prosperous and
peaceful Africa."

Meanwhile, asked about Ethiopia's further engagement in the AU ordinary
sessions, the State Minister said that the country has informed leaders of
the Union clearly about Somalia's case appertained to the Ethio-Somaliland
MoU.

"Ethiopia's foreign policy underlines the need of regional integration,
cooperation and mutual benefits. We have no history of invading or annexing
others. In case, we need to work on boosting the people to people
integration since we both have same people," he said.

His associate, Foreign Affairs State Minister of Resources and Services,
Ambassador Birtukan Ayano also briefed journalists that Ethiopia welcomed
over 8000 AU guests during the recent past ordinary session.

Ethiopia welcomed more than 8,000 African Union guests with better
hospitality, 54 charter flights were also arrived at Bole international
airport. While performing its regular task, the airport was receiving AU
Guests without interruptions, she said.

Considering the international protocol, Ethiopia has accorded hospitable
services to all guests and the positive reflection of the attendees also
shows that they are treated well, according to her.

However, the accusation of Somalia's President against Ethiopian security
personnel is unassociated with the service which had been received, she
said, adding that the president's delegate was disrupting the international
protocol by rejecting Ethiopian securities' escorting duty.

- Ethiopian Herald.

Kenya: Bolt Discusses Welfare, Safety and Regulatory Concerns With Drivers

Nairobi — Ride-hailing platform Bolt yesterday hosted drivers on its
platform to discuss their welfare, safety, and regulatory concerns.

The drivers were represented by the National Digital Transport Federation at
a Nairobi hotel.

At the meeting, the Estonian-based firm committed to prioritizing the needs
and concerns of its drivers.

"This event marks the initiation of a series of engagements aimed at
fostering stronger relationships, mutual understanding, and identifying
areas of collaboration between Bolt and its valued drivers," Bolt said in a
statement.

The tech company also plans to roll out similar engagements in Mombasa,
Kisumu, and Nakuru.

"We are excited to collaborate with the National Digital Transport
Federation as a representation of drivers on our platform, as we aim to
enhance our driver engagements," Linda Ndungu, Country Manager, Bolt, said.

"At Bolt, our driver partners are at the heart of our business, and events
like these enable us to listen, learn, and evolve together," Ndungu added.

"We believe that by working hand in hand with them and with other key
stakeholders, we can create meaningful impact and shape a future where
everyone benefits."

- Capital FM.

African Development Bank - High Cost of Living in Africa Could Cause Unrest

Abuja — The African Development Bank is warning that the rising cost of
energy, food and other commodities in several African countries, including
Angola, Ethiopia and Kenya, could trigger social unrest. Already, people in
Africa's most populous country, Nigeria, have been marching to protest the
high cost of living, prompting the government to release grain from the
national reserves.

The African Development Bank's notice was contained in its biannual Africa
Macroeconomic Performance outlook publication released last week.

The bank said in its 2024 forecast that energy and food price increases --
along with a currency depreciation in Angola, Ethiopia, Kenya and Nigeria --
could spark internal conflict, despite Africa showing overall economic
growth.

The bank also said conflicts in eastern Europe and the Middle East could
trigger supply chain disruptions, exacerbate inflation across the world, and
make Africa's situation more precarious.

This, as protests over hunger and the cost of living grow in Nigeria.

Hundreds protest food prices

On Monday, hundreds of people demonstrated in southwestern Oyo state, asking
authorities to take steps to bring down the cost of food or resign from
office.

Security analyst Senator Iroegbu agrees with the African Development Bank's
projections.

"It's obvious for even the blind to see that there will be social unrest
because [of] the three basic needs of life, food, shelter and clothing. The
most important is feeding," said Iroegbu. "Nobody can survive without food
and that is the level Nigerians are heading to, so people are becoming
restless. In fact, if one-tenth of what happens in Nigeria happens in
another place, there will be serious unrest but the elasticity of that is
being tested."

The African Development Bank said Africa has several rapidly growing
economies, such as Ivory Coast, Libya, Niger, Rwanda and Senegal.

But the bank said performance varies from country to country depending on
economic policies.

Nigerian President Bola Tinubu embarked on bold economic reforms including
the scrapping of expensive fuel subsidies and floating of the country's
currency, upon taking office last May.

While authorities say the policies are bound to pay off, the immediate
shocks are having an impact on the economy.

Last week, Nigeria's inflation hit 29.9% -- its highest mark since mid-1996.
In response, authorities ordered the release of 102,00 metric tons of grain,
including rice and maize, to lower food prices.

Government 'not sleeping,' says official

On Tuesday, Nigeria's chief of defense staff, Major General Christopher
Musa, spoke to journalists in Abuja about the situation.

"The entire world is feeling the heat; it's not only peculiar to Nigeria,"
said Musa. "We've had a few riots here and there. Why I'm happy is that the
government too is not sleeping, it's stepping up to ensuring that they
address these challenges. You've seen that grains have been released,
measures are being put in place to bring succor all over the country. The
issue of dollar and exchange rate, everything is tied to it and that's why
we're having these issues."

The African Development Bank says economic growth in Africa is expected to
average 3.8% and 4.2% in 2024 and 2025, respectively -- higher than
projected global averages in the same period.

But protesters say unless they can afford food and life's basics, they will
continue to march in the streets.

- VOA.

Eswatini Losing the Fight Against Corruption, According to Its Citizens

Most citizens say reporting corruption risks retaliation and is unlikely to
lead to government action.

Key findings

An overwhelming majority (87%) of Emaswati say the level of corruption in
their country increased over the past year. Almost three-fourths (73%) say
it increased "a lot." ° Perceptions of increasing corruption are more
widespread in Eswatini than in any of the 38 other countries surveyed in
2021/2023. ° The share of Emaswati who see corruption as increasing has
risen sharply since 2018 (51%).

More than eight in 10 citizens (83%) give the government poor marks on its
efforts to fight official corruption, more than twice the disapproval rate
registered in 2018 (38%).

Most citizens (85%) say people risk retaliation or other negative
consequences if they report corruption to the authorities. ° And
three-fourths (75%) consider it unlikely that the government would take
action in response to reported corruption.

More than half of respondents say "most" or "all" police officers (55%) and
civil servants (51%) are corrupt, the worst assessments among 11
institutions and leaders the survey asked about. Half (50%) say the same
about business executives.

Two-thirds (67%) of Emaswati believe that "a lot" of the resources mobilised
to combat COVID-19 were lost to corruption.

Among citizens who interacted with key public services during the previous
year, almost four in 10 (38%) say they had to pay a bribe to obtain a
government identity document, while about one in three report having to pay
a bribe to obtain police assistance (32%) or to avoid a problem with the
police (30%).

Despite the existence of an Anti-Corruption Commission since 1998, Eswatini
continues to perform poorly on global corruption measures, calling into
question the effectiveness of the government's anti-corruption efforts. The
country's score on Transparency International's (2023) Corruption
Perceptions Index has dropped by 13 points since peaking at 43/100 in 2014.
Similarly, last March, the country got a failing score on the Millennium
Challenge Corporation's (MCC) control-of-corruption indicator for the first
time, making it ineligible for MCC grants (Nhlabatsi, 2023). In 2022, the
Public Accounts Committee revealed to Parliament that since 2018, E7.4
billion ($404.3 million) in public funds, about 8% of the national budget
for the same period, had been lost through unauthorised expenditures by
government ministries (Dlamini, 2022).

These statistics suggest that corruption poses a significant threat to the
government's drive to move away from dependence on Southern African Customs
Union receipts and rely more on domestic sources of revenue to fund
expenditures, as called for in the government's 2010 Fiscal Adjustment
Roadmap (Ministry of Finance, 2010).

According to the findings of Afrobarometer's 2022 survey, a growing majority
of Emaswati believe that corruption is increasing in the country while
government efforts to combat it are failing. Most respondents say that
people who report corruption risk retaliation and that the government is
unlikely to take action in response to reported corruption.

Mbuso Dlamini Mbuso Dlamini is the Managing Director of QA Strategic
Information.

- Afrobarometer.

Japan's main stock index closes above 1989 record high

Japan's main stock index has hit an all-time closing high, surpassing the
previous record set 34 years ago.

The Nikkei 225 rose 2.19% on Thursday to end the trading day at 39,098.68.

That topped the previous record closing high of 38,915.87 set on 29 December
1989, the last day of trading that year.

Asian technology shares were boosted after US chip giant Nvidia revealed
strong earnings, driven by demand for its artificial intelligence
processors.

Global investors are returning to the benchmark index thanks to strong
company earnings, even as the country's economy has fallen into a recession.

The weakness of the Japanese currency has also helped to boost share prices
of Japan's exporters as it makes their products cheaper in overseas markets.

The Nikkei 225 hit its previous record high after years of soaring stock and
property prices.

Less than three years after that peak the benchmark index had lost almost
60% of its value as the Japanese economy was engulfed in an economic crisis.

Since then the Japan has struggled with little or no economic growth and
falling prices, known as deflation.

Deflation is bad for an economy as persistent price declines mean that
consumers tend to hold off from buying big ticket items due to the
expectation that they will be cheaper in the future.

Last week, official figures showed that the Japanese economy had
unexpectedly slipped into recession in the last three months of 2023.

The country's gross domestic product (GDP) contracted by a
worse-than-expected 0.4% in the last three months of 2023, compared to a
year earlier.

It came after the economy shrank by 3.3% in the previous quarter.

The figures from Japan's Cabinet Office also indicate that the country has
lost its position as the world's third-largest economy to Germany.

The latest figures were the first reading of Japan's economic growth for the
period and could still be revised.

Two quarters in a row of economic contraction are typically considered the
definition of a technical recession.-bbc

Nvidia: Boss says AI at 'tipping point' as revenues soar

The boss of the world's most valuable chip maker Nvidia said artificial
intelligence (AI) is at a "tipping point" as it announced record sales.

The technology giant reported that revenues surged by 265% to $22bn
(£17.4bn) in the three months to 28 January, compared to a year earlier.

For the year as a whole, turnover more than doubled to $60.9bn.

"Accelerated computing and generative AI have hit the tipping point," said
Nvidia chief executive Jensen Huang.

"Demand is surging worldwide across companies, industries and nations."

Nvidia also forecast a 233% jump in its quarterly revenues for the current
quarter, beating analysts' estimates.

Nvidia: The chip maker that became an AI superpower

"There was a lot riding on this last quarter and they actually absolutely
knocked it out of the park," Bob O'Donnell of Technalysis Research told the
BBC.

"We're starting to see mainstream usage of AI," he added, highlighting that
AI is not longer only used by specialised technology companies.

In addition to its AI chips, sales at the firm's data centres have grown
rapidly.

Nvidia said its gross profit for fourth quarter came in at $16.8bn, up 338%
compared to a year earlier. Its annual gross profit rose by 188%
year-on-year to $44.3bn.

Its data centre business contributed the vast majority of its revenues in
the most recent quarter after growing more than than five-fold over the last
year.

However, the company said it faced several challenges including constraints
on its supply chains.

The US has also tightened its restrictions on trade with China, the world's
second largest economy.

Ipek Ozkardeskaya, a senior analyst at Swissquote, told the BBC that
Nvidia's results had been "unusually amazing".

But she added that Nvidia could face difficulties in addition to
restrictions in China.

"Nvidia... will see challenges on the way up because first the revenue
growth will likely stabilise and the euphoria regarding these growth and
growth perceptions will level out," she said.

The company is also likely to face competition and regulation issues, Ms
Ozkardeskaya added, and it could be "constrained by their own capacity to
respond to this fast-surging demand".

AI's public profile has risen sharply since the launch in 2022 of ChatGPT,
which was developed by Microsoft-backed OpenAI.

ChatGPT and other similar systems use huge amounts of data to create
convincing human-like responses to user queries.

They are expected to dramatically change the way people search for
information online.

Nvidia's stock market value has soared by 225% over the last year, making it
one of the most valuable companies in the US. Its share price jumped by more
than 9% in extended New York trading.-bbc

Boeing 737 Max boss out after blowout

The leader of Boeing's troubled 737 Max programme is to leave the company,
which has been under pressure since a piece of one of its jets blew out
during a passenger flight in January.

The departure of Ed Clark after nearly 18 years at the firm is part of a
wider shake-up of the commercial airplane division announced on Wednesday.

Boeing said the changes were aimed at improving its quality and safety.

It comes as the firm prepares to meet with regulators.

The company has been facing scrutiny since the incident on the Alaska
Airline flight, which did not lead to serious injuries but forced an
emergency landing.

The incident revived wider questions about manufacturing processes for
Boeing's popular 737 Max planes, years after crashes involving a different
version of the jets in 2018 and 2019 killed 346 people and led to a global
grounding for 20 months.

Boeing was barred last month from expanding its 737 Max output by the
Federal Aviation Administration, while the authority reviewed its production
line for the planes. Other less serious flaws have troubled production in
recent years as Boeing ramped up manufacturing following the grounding.

A preliminary investigation of what went wrong on the 737 Max 9 jet flown by
Alaska Airlines found that bolts meant to fasten the door panel were
missing, after being removed inside Boeing's factory in Renton Washington.

Bolts missing from door, says Boeing blowout probe

Boeing's mid-air blowout puts safety record in spotlight again

Ed Clark was vice president and general manager of the 737 programme,
overseeing the Renton, Washington factory that produced the plane involved
in the blowout. Calls followed from safety campaigners for new leadership at
the firm.

He will be replaced by Katie Ringgold, currently vice president of 737
delivery operations. The company also announced it was creating a position
of senior vice president for quality.

In a message to staff on Wednesday, Stan Deal, the head of Boeing commercial
airplanes division said the changes were aimed at "ensuring that every
airplane we deliver meets or exceeds all quality and safety requirements.
Our customers demand, and deserve, nothing less".

He said Mr Clark was leaving with the company's "deepest gratitude for his
many significant contributions over nearly 18 years of dedicated service to
Boeing".-bbc

Google to fix AI picture bot after 'woke' criticism

Google is racing to fix its new AI-powered tool for creating pictures, after
claims it was over-correcting against the risk of being racist.

Users said the firm's Gemini bot supplied images depicting a variety of
genders and ethnicities even when doing so was historically inaccurate.

For example, a prompt seeking images of America's founding fathers turned up
women and people of colour.

The company said its tool was "missing the mark".

"Gemini's AI image generation does generate a wide range of people. And
that's generally a good thing because people around the world use it. But
it's missing the mark here," said Jack Krawczyk, senior director for Gemini
Experiences.

"We're working to improve these kinds of depictions immediately," he
added.-bbc

HSBC: Bank's pre-tax profits soar fuelled by high interest rates

Europe's biggest bank, HSBC, has posted an almost 80% jump in its pre-tax
profit which rose to $30.3bn (£24bn) in 2023, fuelled by high interest
rates.

It comes after central banks around the world raised interest rates in last
18 months to help curb rising prices.

Last week, rival lender NatWest revealed its highest yearly profit since the
financial crisis in 2007.

But a slowdown in China's economy has meant that HSBC's profit was not as
high as expected.

Its bottom line was also affected by a hefty $3bn charge from its stake in
China's Bank of Communications.

The bank makes most of its profits in Asia, especially in China and Hong
Kong.

HSBC's pre-tax profit for 2022 was $17.1bn and analysts were expecting it to
jump to $34.1bn last year.

But its chief executive, Noel Quinn, said in a statement: "Our record profit
performance in 2023 enabled us to reward our shareholders with our highest
full-year dividend since 2008."

"They've had quite a sizable increase in what we call net interest margin
which is the difference between the amount they charged borrowers and the
amount they pay to depositors," banking analyst Frances Coppola told the
BBC.

"That's really been the principal driver of the increase both in revenues
and profits," she added.

"But we have to note that the high interest rate environment is coming to an
end."

The London-based lender rewarded investors with a new $2bn share buyback.

In addition to three share buybacks totalling $7bn, Mr Quinn said the bank
returned $19bn to shareholders last year.

Investors have also been closely watching HSBC's exposure to China's
property sector, which has been engulfed in crisis since 2020.

China, the world's second biggest economy is experiencing falling prices,
known as deflation, which tends to discourage consumers from spending as
they expect items to be cheaper in the future.

Last month, a court in Hong Kong ordered the liquidation of debt-laden
property giant Evergrande.

"China's economy just can't kick into gear," Moody's economist Harry Murphy
Cruise had earlier told the BBC. "Investors are crying out for larger
economic supports to be rolled out."

Rival Asia-focused bank Standard Chartered is due to report its financial
results later this week.-bbc

 Invest Wisely!

Bulls n Bears 

Cellphone:         +263 71 944 1674 | +27 79 993 5557 

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INVESTORS DIARY 2024

Company

Event

Venue

Date & Time

Nampak

AGM

Virtual (FTS Platform)

28 Feb 9am

Art

AGM

virtual (escrow platform)

March 7. 2:30

2024 auction tobacco marketing season opens

13 march

Good Friday

march 29

Easter Monday

1 April

Independence Day

April 18

Workers day

1 May

Companies under Cautionary

CBZH

GetBucks

EcoCash

Padenga

Econet

RTG

Fidelity

TSL

FMHL

 <mailto:info at bulls.co.zw> 

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

 (c) 2024 Web:  <http://www.bullszimbabwe.com> www.bullszimbabwe.com Email:
<mailto:bulls at bullszimbabwe.com> bulls at bullszimbabwe.com Tel: +27 79 993
5557 | +263 71 944 1674

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