Major International Business Headlines Brief::: 25 January 2024

[Bulls n Bears]

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Major International Business Headlines Brief:::  25 January 2024 

 


 

 




 


 

 


 

ü  South Africa: Cape Fishers Worried About Declining Fish Populations

ü  South Africa: Education Department Blames Transport Department for
Scholar Transport Fiasco

ü  Nigeria: Mainstream Takes Over $1.3bn Zungeru Power Plant

ü  Nigerian Stock Index Crosses Record 100,000 Points As Big Gains Continue

ü  Africa: PPPs' Private Gain At Public Expense

ü  Ethiopia: Micro Insurance a Better Mechanism in Reaching Small Scale
Farmers Financially

ü  Nigeria: CBN Vows to Deal With Forex Abuses, Infractions - Insists Naira
Undervalued

ü  Nigeria: As Nigeria's Economy Leverages Increased Recurrent Spending

ü  Nigeria: CBN Hinges Planned Interest Rate Easing On 21.4 Percent
Inflation Target

ü  Nigeria Must Fix Corruption, Investment Issues - Blinken

ü  Nigeria: American Businesses Eager to Invest in Nigeria but... - U.S.
Secretary of State

ü  737 Max 9: Boeing jets cleared to fly after mid-air incident

ü  Tesla warns of 'notably lower' sales growth in 2024

ü  Billionaire Joe Lewis pleads guilty to insider trading

ü  J&J strikes US states deal over baby powder claims

 


 

 


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

South Africa: Cape Fishers Worried About Declining Fish Populations

"The South African story has already been written in Namibia" where there
was a three-year moratorium on sardine and anchovy catch because stocks were
so low

 

Mario Jacobs is worried. He has had a commercial fishing license since 1998,
and has an annual quota for catching sardines and anchovies. But sardine
stocks have been in poor shape for years and 2023 was the worst year on
record for anchovy stocks.

 

Jacobs, who is from Hangberg in Hout Bay, says his business has been
suffering for years. He is battling to access funds to buy a new boat and to
cover the costs of his crew. The dwindling catch is making it difficult to
keep his head above water.

 

The Department of Forestry, Fisheries and the Environment (DFFE) measures
sardine and anchovy stocks biannually with a total biomass survey and a
recruitment survey. Recruitment refers to new fish entering the fisheries.

 

 

The DFFE states that sardine recruitment is very low but has shown some
signs of increasing in recent years. The worst point in 30 years occurred in
2016 when it was estimated there were fewer than 1 billion sardines. The
situation has improved since then but remained below average, so the DFFE is
being conservative with its quotas.

 

In a 2023 report the DFFE stated the current low sardine catches meant major
South Africa canning facilities had to source the bulk of their sardines
from Morocco and other sources in order to stay profitable.

 

The anchovy situation is also troubling. Anchovy recruitment in 2021 and
2022 was below average and the 2023 recruitment is "the lowest recorded to
date".

 

Fish stocks change dramatically year-by-year so not too much can be read
into a single-year estimate, but as the graphs shows, since the mid-2000s
the sardine and anchovy catches have been much lower on average.

 

 

Jim (name changed) is a skipper from Hout Bay. He works on contract for a
big fishing company and has been in the industry for about 40 years. He
confirmed their recent sardine catches have been poor, particularly since
2004.

 

He says it's important to have regulations that protect the species, such as
not being able to catch them when they're too small.

 

"Us fishermen suffer but that's just something we have to live with. Instead
of decreasing the species, rather protect it. If we're going to catch the
small sardines, in a couple of years time, there will be no sardines left,"
he says.

 

Craig Smith, senior manager for the marine portfolio at World Wildlife Fund,
South Africa, says it is "very worrying" that anchovy numbers are dropping
because usually when sardine numbers are very low, anchovy numbers are at
least good.

 

Smith says the likely causes are climate change and overfishing.

 

The DFFE' told GroundUp that "the actual reasons or causes of sardine
decline are unknown" but then suggested "environmental variability" and
"climate change" have "likely contributed".

 

Smith says we need to be cautious of heading in the same direction as
Namibia, which had a sardine fishing industry much larger than South
Africa's. From 2018 to 2020, the Namibian government placed a moratorium on
catching sardines because of a complete collapse in fish stock.

 

"The South African story has already been written in Namibia," says Smith.

 

Smith also points to the declining numbers of birds such the African penguin
and the Cape Gannet which feed on sardines and anchovies. These are "very
useful indicators of the health of the ecosystem" and "directly correlated
to the abundance of sardines".

 

Last year, the DFFE decided to exclude fishing around key penguin foraging
areas from 1 September 2023 for a period of 10 years. This followed the
decline of the African penguin population since 2005, according to the
DFFE's expert review panel report.

 

Mario did not manage to fish his quota this past year. And Jim says the
company he contracts to also did not catch their quota. "It was a weak
season," says Jim.

 

Jim is waiting to see how the anchovy catch will turn out this season.
Anchovies mostly come from the end of February, he says. "We're still
waiting."

 

- GroundUp.

 

 

 

 

 

South Africa: Education Department Blames Transport Department for Scholar
Transport Fiasco

Hundreds if not thousands of learners in the Eastern Cape have been left
stranded with no scholar transport since schools opened for the new term on
17 January.

 

In Kyga in Nelson Mandela Bay hundreds of learners are not in school
prompting a community meeting on Monday with education officials.

 

The Department of Education officials blamed the chaos on the Department of
Transport. They said they had given the transport department the names of
the learners and their schools timeously.

 

Thozamile Qushani, of the governing board for Rocklands Secondary, told the
meeting that 384 learners at the school were not in class as they had no
transport and in total about 750 children in the township were stuck at
home.

 

 

"We have one primary school in this township so most of the learners are
[meant to be] transported to six other primary schools in surrounding
areas," she said.

 

Parent Iviwe Mangcu said private transporters charge about R700 to transport
one child per month.

 

An official of the education department, who did not give his name because
he said he may not to talk to the media, told the meeting there had been
issues with allocation. For example, Van Stadens Primary School was
allocated scholar transport for 523 learners instead of 126, while Walmer
High School had 60 learners who qualified but only 11 were given transport.

 

Spokesperson for the Department of Transport Unathi Binqose told GroundUp
that the previous year's contracts had lapsed and the challenge now was to
contract new operators and include new routes and new schools. He said the
process had encountered more delays than anticipated.

 

 

He said the departments of transport and education and the provincial
government "are working together to solve some of these problems".

 

Binqose said 91,000 Eastern Cape learners were provided with scholar
transport with an annual budget of almost R700-million.

 

However, in a media statement of 10 January, the Democratic Alliance said:
"In response to parliamentary questions MEC Nqatha (for transport) confirmed
that the total budget was R695-million, and R230-million of those funds had
to be used to pay off an old debt, leaving just R465-million for scholar
transport for the financial year."

 

Spokesperson for the Department of Education Mali Mtima said schools are
being encouraged to make catch-up plans for learners who have been stuck at
home.

 

- GroundUp.

 

 

 

 

Nigeria: Mainstream Takes Over $1.3bn Zungeru Power Plant

Mainstream Energy Solution today took over the $1.3 billion Zungeru Hydro
Power Plant, after winning the bid for the plant in a competitive bidding
process.

 

The Executive Director, Corporate Services of Mainstream, Mr. Usman Umar,
while conducting journalists round the plant said that the deal was in
fulfilment of his company's goal of maintaining its leadership position in
the nation's electricity generation.

 

The power plant built to generate 700 MW is located in the ancient town of
Zungeru, Niger State.

 

Speaking on the impact of the concession, Mr. Umar said it would meet
Mainstream growth objectives in clean energy generation.

 

 

His words, "Two or three years ago, the company decided to pursue a growth
programme. We wanted to grow. Growth can.be through acquisition or
organically.

 

"We have the feeling of satisfaction that you derive from setting an
objective and achieving it."

 

The ED said that his company was committed to operating the brand new
Zungeru plant build with a Chinese loan in the most efficient manner in the
interest of the Nigerian economy.

 

The concessioning of Zungeru Power Plant, the newest hydro power plant in
the country, was won by Penstock Energy, a wholly owned subsidiary of
Mainstream Energy Solution Limited.

 

It has four Units and fed with a large dam With a reservoir capacity of 10
billion cubic metres.

 

With addition of Zungeru, he said that hydropower has become the major
source of electricity in the country and with the global move towards
renewable energy, more Hydro power plants should be encouraged.

 

 

On the challenge of electricity transmission, Mr. Umar said that Mainstream
would continue to support the federal government in its programmes towards
strengthening the national grid.

 

According to him, if the power generators ramp.up electricity generation
without improved capacity of Transmission Company of Nigeria to wheel such
power, the generation companies' businesses would suffer.

 

He expressed optimism that the deal with Siemens and the new pact
arrangement with the Chinese would result in a significant increase in
transmission capacity in the interests of stakeholders in the industry and
consumers, in patticular.

 

The Chief Technical Officer of Mainstream, Mr. Jose Villegas, revealed that
with latest addition, the company would be generating about 1, 202 MW into
the National Grid.

 

He added two more units would be added to the current eight units Kainji,
bringing the total number to 10 in that plant.

 

- Vanguard.

 

 

 

 

Nigerian Stock Index Crosses Record 100,000 Points As Big Gains Continue

The index has returned 31.9 per cent since the start of the year.

 

Nigerian stocks stretched their run of gains into the tenth trading day in a
row on Wednesday as investors piled more funds into shares and buy pressure
drove the main stock index beyond the 100,000 basis points mark to its peak
level ever.

 

The all-share index touched a new high of 101,571.1 points, after adding 3
per cent according to Nigerian Exchange data, less than a week after the
country's equity market displaced Argentina's to become the world's
best-performing bourse. That puts the overall return on the Nigerian equity
market in the last 52 weeks at 93.1 per cent.

 

 

Stocks are up to a great start in Africa's largest economy this year as the
central bank warms up to join the push by the Nigerian Government to attain
a $1 trillion economy by 2030, having announced late last year that lenders
will be obliged to raise their capital levels to back the plan.

 

The move is generating much interest in bank stocks, with the NGX Banking
Index being a major driver of the strong performance of the Nigerian stock
market in the past few weeks.

 

Negative real yields on fixed-income securities as a result of high
inflation are also forcing investors to recoup their investment in such
assets and channel it into stocks.

 

"In January 2024, we expect the Bulls to prevail, as bargain hunting
continues as the order of the day," said analysts at United Capital in this
week's outlook note to investors.

 

"Given the global developments across major central banks in advanced
economies, high base expectations for inflation, and improved economic
growth prospects, we expect the local bourse to record a positive
performance this new week."

 

 

The index has returned 31.9 per cent since the start of the year.

 

TOP FIVE GAINERS

 

Wapic Insurance appreciated by 10 per cent to close at N0.88. BUA Cement
enlarged by 9.98 per cent to end trade at N179.65. Japaul rose to N2.55,
notching up 9.98 per cent in the process. University Press Limited went up
by 9.82 per cent to N3.69. Tripple Gee completed the top 5, climbing by 9.69
per cent to N2.83.

 

TOP FIVE LOSERS

 

NEM led losers, declining by 7.2 per cent to close at N10. Cadbury shed 9.96
per cent to end trade at N23.50. The Initiates fell to N2.27, losing 9.92
per cent. May & Baker slumped to N6.65, recording 9.89 per cent
depreciation. McNichols closed at N1.46, going down by 9.88 per cent.

 

TOP FIVE TRADES

 

Altogether, 488.5 million shares estimated at N8 billion were traded in
12,080 deals.

 

Transcorp was the most active stock with 95.1 million of its shares worth
N1.6 billion traded in 1,207 deals. Universal Insurance's shares of 45.6
million units, priced at N18.6 million, exchanged hands in 168 transactions.
Unity Bank had 27.3 million shares valued at N74.1 million traded in 223
deals. Jaiz Bank traded 27 million shares estimated at N76.9 million in 432
transactions. Japaul Gold traded 25.3 million shares valued at N64.3 million
in 239 deals.

 

- Premium Times.

 

 

 

 

Africa: PPPs' Private Gain At Public Expense

Kuala Lumpur, Malaysia — At high cost and with dubious efficiency,
public-private partnerships (PPPs) have increased private profits at the
public expense. PPPs have proved costly in financing public projects.

 

PPPs' high costs

 

Eurodad has shown high PPP costs mainly due to private partners' high-profit
expectations. Complex PPP contracts typically involve high transaction
costs. Worse, contracts are often renegotiated to favour the private
partners.

 

They also take advantage of lower government borrowing costs compared to
private borrowers. Most PPP debt costs are ultimately borne by host
governments but are often obscured by the secrecy of contracts.

 

 

PPPs are often not on official government books or accountable to
legislatures. PPPs thus often avoid transparency and accountability,
invoking the excuse of private commercial confidentiality.

 

Such 'off-budget' government-guaranteed liabilities often make a mockery of
supposed government debt limits. Investors generally expect much higher
returns from developing countries than developed economies, supposedly due
to the greater risks involved.

 

These 'fiscal illusions' obscure transparency and undermine government
accountability, generating huge, but little-known public liabilities. High
and rising interest rates threaten new government debt crises as economic
stagnation spreads.

 

High fiscal risks

 

The high costs and fiscal risks of PPPs drain government resources,
resulting in public spending and fiscal resource cuts. With growing demands
for fiscal austerity, from the IMF and markets, PPPs' high costs threaten
government spending, especially for social services.

 

 

A 2018 IMF Staff Note warned PPPs reduce fiscal policy space: "while
spending on traditional public investments can be scaled back if needed,
spending on PPPs cannot. PPPs thus make it harder for governments to absorb
fiscal shocks, in much the same way that government debt does."

 

But such warnings have not deterred the Fund and World Bank from promoting
PPPs. Worse, austerity measures rarely significantly increase budgetary
resources, forcing governments to rely even more on PPP financing.

 

PPPs the problem, not solution

 

Growing reliance on PPP financing to address climate change is new, but no
less problematic. This purported PPP solution has worsened financial
vulnerabilities in developing countries, also undermining sustainable
development and climate justice.

 

 

The 27th UN climate Conference of Parties' outcome statement urged
multilateral development banks to "define a new vision and commensurate
operational model, channels and instruments that are fit for the purpose of
adequately addressing the global climate emergency".

 

But historical experience and recent trends show PPPs cannot be the
solution. Advocates claim PPPs deliver better "value for money", but
evidence of efficiency gains is inconclusive at best.

 

An African Forum and Network on Debt and Development (Afrodad) study found
Ghana's Sankofa gas project failing. Much touted efficiency gains were all
very context-specific, relying on project design, scale, regulation and
governance.

 

Efficiency gains were typically very costly, mainly due to insufficient
private investments and other such cost savings. Profits were also increased
by cutting jobs and hiring cheaper, insufficiently trained and qualified
staff.

 

Human costs

 

The public should be wary and sceptical of growing reliance on PPPs to
provide infrastructure and public services. Unsurprisingly, such PPPs
prioritise commercial profitability, not the public interest.

 

Corporations are accountable to shareholders, not citizens. Worse,
regulating and monitoring private partners are difficult for fiscally
constrained governments with modest capacities, vulnerable to political and
corporate capture.

 

Unsurprisingly, PPPs have typically imposed higher costs on citizens. Public
services provided by PPPs usually charge user fees, or payments for
services. This means access to services and infrastructure depends on
capacity to pay.

 

Thus, PPPs maximise private profits, not the public interest, undermining
public welfare and the UN Sustainable Development Goals (SDGs), worsening
inequalities. PPPs' high fiscal costs worsen fiscal austerity measures,
reducing other public services, often needed by the most vulnerable.

 

Inevitably, PPPs prioritise more profitable services and those
easier-to-serve. Public healthcare is especially vulnerable as profit and
insurance imperatives compromise service delivery. There is no evidence PPPs
can better address the health challenges most developing countries face.

 

Health PPPs worsen public access to essential services, subverting progress
towards 'health for all' and 'universal health care'. Private provisioning,
including PPPs, has never ensured equitable access to decent healthcare for
everyone. Pretending or insisting otherwise is simply wishful thinking.

 

During the COVID-19 pandemic, countries relying more on private healthcare
provision generally fared worse. Those without means cannot afford private
charges, especially by providers who face few constraints to raising their
charges.

 

U-Turn?

 

After a critical report by its Independent Evaluation Group, the World Bank
- long a leading promoter of private financing of education - had to change
its earlier approach to financing public education.

 

The International Finance Corporation, the Bank's private sector lending
arm, has also worsened educational access, quality and equity. It had to
stop investing in pre-tertiary (kindergarten to grade 12) private schools
from mid-2022.

 

Despite overwhelming evidence that the Bank should stop abusing public funds
to promote PPPs, the new Bank leadership has still not abandoned this
financing strategy thus far. Instead, the SDGs and the urgent need for more
effective climate action have been invoked to give it a new lease of life.

 

IPS UN Bureau

 

Follow @IPSNewsUNBureau- IPS.

 

 

Ethiopia: Micro Insurance a Better Mechanism in Reaching Small Scale Farmers
Financially

Agriculture is the mainstay of the nation's economy and almost 80 percent of
the population earns their living from the sector. It also contributes up to
85 percent of export earnings.

 

However, the subsistence and traditional way of farming made the sector
vulnerable to climate variation which poses drought and flood to the other
extreme.

 

The livestock subsector also faces similar challenges. Cattle raisers move
from place to place for searching forage and water and during extreme
weather condition many of their animals meet their death in the wilderness.

 

 

In time of hardship, farmers tried their level best to sustain their
livelihood by consuming their stored grains but it is only for shorter
period; as the result, they will be forced to stretch their hands to take
handouts from donors. Such practice has been continued since 1950s.

 

Now time is changing and farmers began to develop a culture of modern saving
system by their credit associations so that they could overcome the penury
they may face during drought season. Such approach draws the attention of
donors and private financial institutions and they show interest to provide
insurance coverage in the form of weather index and so far the practice is
undergoing in several parts of the countries and till now thousands of
farmers have been benefiting.

 

Solomon Zegeye is working at the Nyala Insurance Company as a Manager of
Micro Finance Department. As to him, his company has long been delivering
its financial inclusion duties through the provision of various models of
micro insurance with the cooperation of the government, international
non-governmental organizations and the World Bank. It is also a pioneer of
Agricultural micro Insurance in Ethiopian Market. The company strategically
operates on three Insurance Business Areas and among others General
Insurance Business, Long-term Insurance and Micro Insurance Business that is
Crop, livestock and Life and health.

 

 

Poverty is more rampant in the rural part than the urban areas. In Ethiopia
60 percent of the population is living in the high land parts of the country
with various agro-ecological zones engaged in sedentary farming. The rest of
the population which is 40 percent is living in the law land parts of the
country engaged in pastoral and agro-pastoral activities. About 13 million
small holder farmers account for 90% of agricultural GDP. Nearly 55% of
small holder food producers engaged in one hectare or less.

 

 

In the densely populated areas of the central and southern part of the
country due to land scarcity farmers yield is declining from time to time
and in time of drought, their living is critically hit. Hence, reaching them
through financial inclusion scheme helps to withstand the crises.

 

The company has a strategy to create partnership with stakeholders engaged
in rural financial service, small holder agricultural development,
agricultural value chains, financial services and digital technology to
low-income urban population.

 

According to Solomon, the provision of micro insurance service is conducted
by various models. Livestock insurance products are dictated or determined
by agro-climatic conditions and livelihood systems. The other model known as
indemnity based livestock insurance that covers risks like disease, illness,
accident, calving, windstorm, smoke, electrocution, flood and the bite of a
snake. It is also provided for commercial growers and small-holder farmers
in highland and agro-pastoral livelihood areas. The index based livestock
insurance solely practiced in low-land, arid and desert agro-ecologies
Drought insurance extremely vital and it is the significant risk threatening
the livelihood of the pastoralists and conducted through Satellite based
Index.

 

For the scheme financial and technical support provided by World Food
Program and Product design and pricing done by consultant from United
Kingdom and International Livestock Research Institute also took part in it.
National Meteorological Agency served as calculation agent regarding
interpreting the information collected from satellites.

 

There are four local insurance companies which carry risks on pool basis
with Nyala Insurance taking the technical aid to provide reinsurance
protection. Farmers and to pastoralists are required to purchase premium
through their saving and credit association but usually up to 100% of it
subsidized by the donor-World Food Program. The insurance coverage is
provided for long and short rain periods.

 

If the data received from satellite indicates that there was rain failure,
pastoralists or sedentary farmers would be paid costs of purchasing feed,
water and drug intervention areas. So far in the regions such as in
Beneshalgul Gumuz, Amhara and Southern Nation Nationalities and Peoples'
State totally 6,500 small scale farmers received 50 million Birr because of
the crop failure due to drought in 2022. Farmers allocated the money to
purchase grain for personal consumption, seeds and agricultural inputs for
the next harvest season.

 

As to Solomon, the areas that have been hit by recurrent drought based on
the data brought from satellite in Somali Region in the places known as
Adadele, Kebri Dehar and west Elimi 5001 beneficiaries received 70 ,014,000
Birr.

 

In addition, in Afar region three woredas 3200 pastoralists received
8,809,152 Birr. The money is allocated for purchasing drug to treat their
infected cattle by diseases. From time to time the number of beneficiaries
also increased but there are also challenges which need remedial actions and
among others, lack of technical skills in product design and index based
pricing. Short pilot duration of the insuring program and low level
financial literacy of beneficiaries also can be mentioned.

 

As to Slomon, some of the forwarded solutions to address the mentioned
shortcomings are scaling up and sustaining micro insurances and to that end
there must be collaboration among stakeholders.

 

Encouraging innovative public private partnership and the major
stakeholders, the government, which plays crucial role in poverty
alleviation should create enabling environment by formulating legal
framework and introducing proclamation helpful for micro insurance
development and supporting innovation technologies for premium collection.

 

In the last two years, both in Somali and Oromya Regions of Borena hundreds
of thousands livestock population died due to drought. The natural disaster
currently witness is very critical to the government and to the nation at
large. To save the remaining cattle, government and non-governmental
organizations are trying their level best. Regional governments also
provided millions of Birr to the victims.

 

According to the National Disaster Prevention Authority, the magnitude of
drought witnessed frequently is extremely difficult and in which the nation
ever had experienced in the last 50 year. The disaster that hit the animal
intern affects the livelihood of the pastoral communities. As it is known
the pastoral communities mostly resided in the arid zones are often
vulnerable to drought and natural calamities and the absence of
infrastructure such as roads, piped water and health centers further
complicates the matter.

 

Drought not only put stress on grazing resources but also it poses the
outbreak of cattle diseases which are beyond their capacity to withstand the
crises. As a result, many animals mate their death at the wilderness.
However, due to the due attention paid by the regional and the federal
governments, it was possible to save human lives. As it is known the life of
the pastoral community depends on finding forage for their animals; as the
result, they move place to place in search of grass and water. But when
disastrous situation occur all things will be multiplied by zero. Hence, to
change the situation to the better striving to bring long lasting solution
through transforming their way of life is essential; this can be done by
providing them with finance.

 

- Ethiopian Herald.

 

 

 

 

 

Nigeria: CBN Vows to Deal With Forex Abuses, Infractions - Insists Naira
Undervalued

The Central Bank of Nigeria, CBN, has vowed to deal with abuses and
infractions in the foreign exchange, (Forex) market.

 

CBN insisted that the Naira is currently undervalued. It noted that it was
implementing measures to improve liquidity in the forex market in the short,
medium and long term.

 

The CBN Governor, Olayemi Cardoso, made this vow over forex in a keynote
address at the Nigeria Economic Summit Group 2024 Economic Outlook report
presentation.

 

Cardoso disclosed that measures to improve forex liquidity include ongoing
collaboration with the Ministry of Finance and NNPC to ensure all forex
inflow is returned to the CBN.

 

 

He said: "Our initiatives on FX, I'm pleased to note our collaboration with
the Ministry of Finance and NNPC to ensure that all FX inflow are returned
to the CBN.

 

"This coordinated effort will greatly enhance the Bank's forex flow and
contribute to accretion of reserves.

 

"The expected stability of the FX market in 2024 can be attributed to the
expected reduction in petroleum products import and the recent
implementation of the market-determined exchange rate policy by the CBN.

 

"This reform is designed to streamline and unify forex rates fostering
transparency and reducing arbitrage opportunities.

 

Investor confidence

 

"The resulting consistent and stable exchange rate will boost investor
confidence. It will also be attracting foreign investment, elevating
Nigeria's appeal to global investors.

 

 

"We are implementing a comprehensive strategy to improve liquidity in our FX
market in the short, medium and long-term.

 

"Our focus is on addressing fundamental issues that have hindered the
effective operations of our market over the years.

 

"Upholding the integrity of financial markets is crucial for building
confidence.

 

"With the completion of an independent forensic review, we are addressing
the backlog of valid forex transactions and we remain steadfast in our
commitment to decisively address any infraction and abuses.

 

"In our efforts to stabilise the exchange rate, it is important that we
prioritise transparency and create a market environment that enables a fair
determination of exchange rates, ensure stability for businesses and
individuals alike.

 

"We believe that the Naira is currently undervalued and coupled with
coordinated measures with the fiscal side, we will expedite genuine price
discovery in the near term.

 

"This coordinated approach will contribute to a balanced and stable forex
rate," the CBN boss added.

 

Vanguard News

 

- Vanguard.

 

 

 

 

 

Nigeria: As Nigeria's Economy Leverages Increased Recurrent Spending

With the federal government planning to spend almost N10 trillion on
recurrent expenditure out of the N28.7 trillion 2024 budget, analysts have
said the increased spending will boost growth to circa 3.7 per cent.

 

Speaking at the FirstBank of Nigeria's 2024 Outlook session with the theme;
Current Realities and Prospects," the group managing director of FirstBank
of Nigeria Limited, Dr. Adesola Adeduntan said, he expects a robust and
optimistic economic outlook for Nigeria.

 

According to him, the increase in capital expenditure outlined in the 2024
budget will enhance economic activities throughout the year. Adeduntan, in
his opening remarks, said: "the year has started on a very strong footing
with the President, Commander in Chief, President Bola Ahmed Tinubu signing
the 2024 appropriations bill into law with a record proposed spending of
N28.7 trillion which is the highest in the history of the country in nominal
terms.

 

 

"More exciting is the fact that about N9.9 trillion specifically is budgeted
for capital expenditure."

 

He said by implication, significant spending is planned and this will allow
for desperate enough stimulus within the economy that allows serious players
to tap into the goals and aspirations of the government.

 

"The budget assumes a growth expectation of about 3.76 per cent even though
what is being projected by IMF is slightly lower at about 3.3 per cent which
is slightly lower than the sub-Saharan African average of about 4.2 per
cent. Given the size of our economy, whether you're looking at 3 per cent or
3.7 per cent growth, the growth is significant and serious players do have
the opportunity to tap into this."

 

 

On his part, the Chief Consultant, B. Adedipe Associates Limited, Dr.
'Biodun Adedipe projected that Nigeria's economy will likely grow by 3.74
per cent in 2024. He noted that his firm's projection on Nigeria's growth
prospect is more optimistic than domestic and international entities.

 

"What I see more is an economy that will likely grow at about 3.74 per cent.
The World Bank indicated 3.3 per cent. But, we in BA Consult see 3.74 per
cent. International Monetary Fund probably will come later and revive their
own, also in their outlook, and of course, different other entities. But,
everybody is projecting this economy to grow at above three per cent this
year," he said.

 

Further on prospective economic trends in Nigeria for 2024, with a specific
focus on interest rates, exchange rates, and gross domestic product (GDP)
growth, the chief consultant has foreseen the likelihood of the Central Bank
of Nigeria (CBN) adopting an orthodox monetary policy approach.

 

The prediction suggests a potential increase in the Monetary Policy Rate
(MPR) to narrow the gap with inflation.

 

He added that, the MPR may not undergo significant changes in the first half
of 2024, with a potential decrease anticipated in the latter half of the
year. Despite this, he acknowledged President Bola Tinubu's inclination to
promote consumer credit, indicating a preference for lower interest rates.

 

He said: "on exchange rate, different entities have done expectations for
the exchange rate for Nigeria. If you look at JP Morgan, if you look at
World Bank, IMF, the one that is frightening is EIU because they said if we
continue with this unified exchange rate, we may see the Naira get to N2,000
to a dollar. But, I now say that it may not necessarily work out that way."

 

Based on various indications, including government pronouncements and budget
assumptions, the chief consultant said that the official exchange rate was
expected to average around N900 to the dollar.

 

He said: "So, looking at how the market has behaved between June 2023 and
beginning of this year, we have an outlook of an average of official rate
around N900. The pattern is this, typically, anytime there's a major shift
or destruction in any economy, a new equilibrium is created and that was
what happened when fuel subsidy removal was implemented."

 

Adedipe also foresees the parallel market rate staying below N1,235 per
dollar, saying that occasional fluctuations are possible.

 

- Leadership.

 

 

 

 

Nigeria: CBN Hinges Planned Interest Rate Easing On 21.4 Percent Inflation
Target

Ahead of its first Monetary Policy Committee (MPC) meeting slated for next
month, the Central Bank of Nigeria (CBN) has said, once it achieves its 2024
inflation target of 21.4 per cent, it plans to scale back monetary policy to
lower interest rates to stimulate economic growth.

 

This is as an economist analyst advised the MPC to raise the Monetary Policy
Rate (MPR) to increase the real interest rate and encourage investment.

 

CBN's deputy governor, Economic Policy, Muhammad S. Abdullahi while speaking
in Lagos yesterday, said that the implemented monetary and fiscal policies
will lead to a relaxation of foreign exchange constraints in the foreseeable
future.

 

 

On the other hand, Chief Consultant of B. Adedipe Associates Ltd, Dr 'Biodun
Adedipe, said that the current situation in Nigeria with a high inflation
rate and low interest rates had led to a negative real interest rate, which
in turn had been discouraging investment.

 

According to him, negative real interest rate occurs when the inflation rate
subtracted from the interest rate results in a negative value.

 

Adedipe emphasised that economic growth and development rely heavily on
investment, which is being hindered by the current conditions.

 

Speaking at the 10th National Economic Outlook, organised by the Chartered
Institute of Bankers of Nigeria Centre for Financial Studies, in
collaboration with B. Adedipe Associates Ltd., on Tuesday in Lagos.

 

Adedipe, anticipated the committee to raise interest rates to address the
issue and encourage economic growth.

 

He said, "inflation rate latest figure for December 28. 92 per cent,
Monetary Policy Rate, 18. 75 per cent, that's a real differential which when
interpreted means negative interest rate.

 

 

"So ordinarily for any central or reserved bank in the world, they want to
reduce that differential and move it more to a positive real interest rate
in which case, that is what will incentivize investment. That is a typical
approach to orthodoxy in monetary policy.

 

"So, if we look at that alone, then we should expect that monetary policy
rate will be raised by the monetary policy committee which of course we have
now a tentative agenda of its meeting commencing February this year."

 

Meanwhile, CBN deputy governor, Abdullahi, who was represented by director,
Monetary Policy Department, CBN, Muhammed Tumala said "Inflationary
pressures may persist in the short-term but are expected to decline in 2024.
The recently introduced inflation-targeting policy of the Bank is expected
to rein-in inflation, which is projected to decline to 21.4 per cent,
following the crystallisation of government reforms, despite its persistence
in 2023.

 

 

"Food inflation is expected to decrease due to improved agricultural
productivity. The expected deceleration will largely reflect the base effect
of Government reforms in energy and the easing of global supply chain
pressures. This would boost consumer confidence and purchasing power,
benefiting businesses across the board.

 

"The CBN will then adjust its policy rate in response to inflation trends,
and a decrease in inflationary pressures can prompt a more accommodative
monetary policy. Lower interest rates mean that the cost of borrowing for
businesses decreases, making capital more accessible. This, in turn, can
stimulate investment, businesses, fuelling growth and job creation".

 

Stating that the CBN's decision to adopt the inflation-targeting framework
to achieve its core mandate, he said: "inflation targeting involves using
monetary policy tools such as the policy rate to achieve a specific
inflation rate within a targeted range. The aim is to maintain price
stability, which is crucial for human welfare, businesses and sustainable
economic growth.

 

"The CBN's approach in achieving price stability for businesses in an
inflation targeting regime will involve a combination of clear
communication, use of monetary policy instruments, collaboration with fiscal
authorities, amongst others. For instance, clear communication of this
target is vital for business as it shapes expectations, influences
investment decisions, and guides economic planning.

 

"These Inflation targeting initiatives will contribute to overall economic
stability, fostering market confidence. Stable economic conditions will
positively influence consumer behaviour. Businesses can thrive in an
environment where consumers feel secure and confident in the economy."

 

On the exchange rate regime, he said, the major policy thrust of the CBN is
the pursuit of a flexible exchange rate regime that has resulted in the
unification of the foreign exchange market into a single window.

 

"Also, the bank has reverted to the conventional monetary policy approach
with a focus on attaining price stability, which fosters sustainable
economic growth for Nigeria. The importance of low and stable inflation for
businesses cannot be overemphasised.

 

"Therefore, it is important to note that the anticipated stability in the
foreign exchange market would not only be attributed to a substantial
reduction in the country's petroleum products importation by 2024, but also
to the recent market determined exchange rate policy of the CBN. Staff
estimates reveal that exchange rate pressures is expected to decline
significantly in 2024," he pointed out.

 

He reiterated that the recent exchange rate reform, which aims to streamline
and harmonise multiple exchange rates, plays a crucial role in eliminating
distortions and uncertainties in the foreign exchange market.

 

Noting that the unification aligns with global best practices, promote
transparency and reduce arbitrage opportunities, which had previously
existed in the fragmented exchange rate system, he said: "a consistent and
stable exchange rate not only bolsters investor confidence, signalling a
commitment to market-driven policies, but also acts as a powerful magnet for
foreign investment. This streamlined approach ensures a smoother operation
of the economy, enhancing Nigeria's attractiveness to global investors
seeking stability and clarity in currency valuations."

 

Another factor he states would spur the economy is the increased allocation
to Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

 

He said: "Like a builder, the 2024 budget lays bricks for the future,
prioritising critical infrastructure and human capital development. We have
seen allocations for education, healthcare, infrastructure and other key
sectors of the economy geared toward human development and growth.

 

"In terms of allocation, there is increased Government focus in medium
enterprises. For instance, SMEDAN's allocation SMEDAN increased by 238.87
per cent to N19.79 billion in 2024, compared with N5.84 billion allocation
in 2023. This shows the government's commitment to growing the business
sector."

 

- Leadership.

 

 

 

 

Nigeria Must Fix Corruption, Investment Issues - Blinken

United States Secretary of State, Anthony Blinken, on Tuesday, pressed
Nigeria to tackle barriers like corruption and difficulty repatriating
profits that have dampened the business climate for American companies
looking to invest in Africa's largest economy.

 

He disclosed this to State House correspondents after meeting with President
Bola Tinubu at the Presidential Villa in Abuja.

 

In a press briefing alongside Nigeria's Foreign Affairs Minister, Amb. Yusuf
Tuggar, Blinken praised Nigeria's economic potential but said: "long-term
challenges need to be overcomed to really unlock the full potential."

 

He said the U.S. was eager to partner with and invest in Nigeria's dynamic
private sector, especially in technology and entrepreneurship.

 

However, Blinken noted that corruption remains a major obstacle, saying
"companies that come in and invest, want to make sure that they're going to
be investing with a fair and level playing field."

 

 

He also cited difficulty repatriating capital as an impediment to investment
that Nigeria's government should address.

 

"And in so doing, create, create new jobs, new opportunities, and even new
industries. This is a big focus of our binational position in the work that
I mentioned as well as there remain some impediments systems.

 

"We hear from our own business community. That I think standard way of
maximizing those opportunities. One is the repatriation of capital is
important.

 

"I know the Central Bank governor is building on that. And second is the
ongoing effort to combat corruption because companies that come in and
invest, want to make sure that they're going to be investing with a fair and
level playing field.

 

"And corruption, of course, is a big impediment. So, having said all of
that, but I do think we're seeing a little bit when we had the Africa
Leaders Summit hosted by President Biden.

 

 

"One of the commitments we made was to generate an additional $55 billion in
the private sector investment in Africa over the next few years. Well, here
we are one year after the signing, and we are 40% of the way to achieving
that goal.

 

"By the end, like two years after the summit, based on the trajectory we're
on now, we will be at 70% of that goal, and we will achieve the goal in the
three years President Biden setup, that's just one important manifestation,
not only of our commitment to generating private sector investment."

 

Blinken emphasised the importance of the US-Nigeria relationship and said
Nigeria was "essential" to US efforts in Africa.

 

Blinken highlighted areas of cooperation between the two countries,
including on climate action, blue economy development, science and
technology exchange, and public health.

 

 

He commended Nigeria's progress in responding to HIV, COVID-19 and other
diseases.

 

The Secretary of State also discussed opportunities for increased U.S.
private sector investment in Nigeria's technology and entrepreneurship
sectors.

 

On security, Blinken offered condolences for recent attacks in Nigeria and
pledged continued U.S. support in combating terrorism and violent extremism
in the country.

 

He emphasised the importance of civilian security, human rights and
accountability.

 

Blinken said the U.S. was determined to be a security partner for Nigeria
and the Lake Chad region.

 

He said the U.S. will provide security assistance through military training,
equipment transfers, intelligence sharing and comprehensive approaches
focusing on local communities.

 

Overall, Blinken characterised this as a consequential time for the
US-Nigeria partnership.

 

He said the two countries were increasingly focused not only on bilateral
issues but on addressing regional and global challenges together.

 

Blinken outlined the President Joe Biden administration's principles
regarding the Gaza Strip.

 

Blinken stated the U.S. opposes any changes to Gaza's territory or
displacement of people from the area.

 

He reaffirmed American support for "maintaining effective territorial
integrity" between Gaza and the West Bank.

 

"We've been very clear about opposing any formal change to Gaza's territory
configuration," Blinken said.

 

He indicated that U.S. believed there could be a role for "transitional
arrangements" as Israel draws down military operations in Gaza.

 

On his part, Nigeria's Foreign Affairs Minister, Yussuf Tuggar, emphasised
"commonalities" between the two countries in supporting a two-state
solution.

 

Tuggar acknowledged Nigeria has been "very expressive" in criticising
Israeli military actions in Gaza.

 

"It's not surprising that Nigeria of course, has been very expressive,"
Tuggar said.

 

Tuggar stated that Nigeria remains focused on the shared goal of a two-state
solution despite differing responses to the violence.

 

"Each country behaves with regards to foreign policy with the influence of
domestic politics and domestic influences," he stated.

 

- Leadership.

 

 

 

 

Nigeria: American Businesses Eager to Invest in Nigeria but... - U.S.
Secretary of State

"American entrepreneurs and American companies are eager to partner with and
invest in Nigeria's economy, particularly in the tech sector...," he said.

 

Corruption and difficulty in repatriating capital amongst others are some of
the reasons American entrepreneurs eager to invest in Nigeria are stalling,
US Secretary of State Antony Blinken told journalists at Nigeria's Aso Villa
on Tuesday.

 

"American entrepreneurs and American companies are eager to partner with and
invest in Nigeria's economy, particularly in the tech sector... Nigeria
offers real, clear, compelling opportunities for investors. At the same
time, I think it is no secret that there remain some long-term challenges
that need to be overcome...," he said.

 

After meeting with President Bola Tinubu, Mr Blinken told journalists that
to unlock Nigeria's full potential and improve direct investment, the West
African country must tackle corruption and make it easier for foreign
companies to repatriate capital.

 

 

"Tackling corruption, making it easier for foreign companies to repatriate
capital, these will all pull in a transformative direction and pull in
transformative direct investment," he said.

 

PREMIUM TIMES reports that at least three manufacturing companies last year
announced they were ending manufacturing operations in Nigeria, opting for
alternative means of doing business due to various reasons including those
raised by Mr Blinken.

 

According to Mr Blinken, these investors are particularly interested in the
tech sector. "We have tech giants that are teamed up with Nigerian partners
to help meet the president's news One Million Digital Jobs Initiative."

 

He added that other companies are laying undersea cables, using satellite
technology to expand internet access in Nigeria.

 

Mr Blinken said he believes President Tinubu's administration is focussed on
addressing the challenges.

 

 

"I know that President Tinubu is focused on these challenges, and we also
welcome his very bold economic reforms to unify the currency and end fuel
subsidy.

 

"We also recognise that in the short term, these reforms created pain for
vulnerable communities.

 

"I spoke about some ways that the United States can support Nigerians while
the government carries out these essential reforms, and work to protect
those who may again in the short term, be negatively affected," he said.

 

Mr Blinken said that in spite of the identified challenges in Nigeria, the
government and American entrepreneurs still continue to explore the great
potential of the country in reaching Africa.

 

He said that large investments are being made by private sector companies in
collaboration with local entities to ensure development, especially in the
health sector.

 

"Over the last five years, we've invested $8.3 billion in HIV tuberculosis
prevention, care and treatment, and in strengthening the public health
system, reaching millions of Nigerians and that effort will continue.

 

"Our partnership is also strengthening Nigerian institutions to innovate and
lead the region's public health response.

 

"We're driving climate action. As partners in the global coalition. We're
working in collaborating to support the development and use of artificial
intelligence for good with 30 other Atlantic countries.

 

"Because one of the things we've learned from these partnerships is that it
benefits us as much as any place or any company that we're investing in," he
said.

 

The US Secretary of State is in Nigeria as part of his week-long tour of
four African countries. He said the US is committed to strengthening genuine
partnerships on the continent, solving shared challenges, and also to
deliver on the promise and the fundamental aspirations of citizens.

 

He added that Nigeria is essential to the efforts of the US on the continent
and listed other areas of partnership including driving climate action as
partners in the Global Methane Coalition and pushing for permanent
representation in the UN Security Council and other international
organisations.

 

Mr Blinken described Nigeria as a place of extraordinary innovation and
extraordinary dynamism.

 

- Premium Times.

 

 

737 Max 9: Boeing jets cleared to fly after mid-air incident

The US aviation regulator says it will allow Boeing's 737 Max 9 jets to
resume flying after inspections are completed.

 

The Federal Aviation Administration (FAA) grounded 171 of the planes after
an unused door broke away mid-flight.

 

United Airlines and Alaska Airlines plan to start returning the jets to
service in the coming days.

 

But the FAA says it will not yet allow Boeing to expand production of its
best-selling narrow body family of jets, which includes the 737 Max 9.

 

The unprecedented decision by the regulator marks more bad news for the
plane making giant.

 

"This won't be back to business as usual for Boeing," FAA Administrator Mike
Whitaker said in a statement.

 

"We will not agree to any request from Boeing for an expansion in production
or approve additional production lines for the 737 Max until we are
satisfied that the quality control issues uncovered during this process are
resolved," he added.

 

The announcement that the planes will be allowed to fly again once
inspections have been completed is welcome news for Alaska Airlines and
United Airlines, which had to cancel thousands of flights.

 

Alaska Airlines said it expects "to bring our first few planes back into
scheduled commercial service on Friday", with more planes added every day as
inspections are completed.

 

United Airlines said it had received final approval from the FAA to complete
the process of returning its 79-strong fleet of 737 Max 9 planes to service.

 

The company's chief operations officer Toby Enqvist said the airline was
preparing to start flying the aircraft again from 28 January.

 

On 5 January a door plug on an Alaska Airlines 737 Max 9 blew off shortly
after take-off, terrifying passengers, and forcing an emergency return to
the Portland, Oregon airport.

 

Bosses of both Alaska Airlines and United Airlines have expressed
frustration with Boeing over the grounding of the 737 Max 9, which has
caused major disruptions to their services.

 

In an interview with NBC News, Alaska Airlines boss Ben Minicucci said there
was "no doubt" that the plane came "off the production line with a faulty
door".

 

He said airline inspections since the incident found "many" loose bolts.
"I'm more than frustrated and disappointed," he said. "I am angry."

 

United Airlines chief executive, Scott Kirby, also told CNBC that he is
"disappointed".

 

"The Max 9 grounding is probably the straw that broke the camel's back for
us," he said, adding that "we're going to build a plan that doesn't have the
[Boeing] Max 10 in it".

 

United also said earlier this week that it expected to lose money because of
the grounding.

 

On Wednesday, the head of Boeing, David Calhoun, faced questions from
lawmakers in Washington to explain what led to the mid-air emergency.

 

The latest incident raises fresh questions about the safety of Boeing's
aircraft.

 

The company faced intense scrutiny after two fatal crashes of 737 Max 8
passenger jets in 2018 and 2019, which killed 346 people.-bbc

 

 

Tesla warns of 'notably lower' sales growth in 2024

Tesla is forecasting a sharp sales slowdown this year, becoming the latest
car company to warn of sagging demand.

 

Elon Musk's electric vehicle (EV) maker said growth would be "notably lower"
than in 2023, when deliveries rose 38%.

 

The company's shares fell by almost 6% in extended trade in New York after
the announcement.

 

Mr Musk also warned that Chinese rivals "will pretty much demolish most
other car companies in the world" unless trade barriers are put in place.

 

Tesla slashed prices repeatedly last year in a bid to keep demand up.

 

The moves helped the firm sell a record 1.8 million cars in 2023, up nearly
40% from 2022.

 

But revenue grew at about half that pace, slowing precipitously at the end
of the year.

 

In its quarterly update to investors, Tesla said it was not expecting
another big wave of expansion until it launches a new model.

 

The company has been discussing plans for a compact car that would be less
expensive than its current Model Y, which starts around £45,000 in the UK.

 

"Our company is currently between two major growth waves: the first one
began with the global expansion of the Model 3/Y platform and the next one
we believe will be initiated by the global expansion of the next-generation
vehicle platform," it said.

 

Mr Musk's call for trade barriers in the increasingly competitive market
came after China's BYD overtook Tesla as the world's top-selling electric
carmaker in the last three months of 2023.

 

Wednesday's sales slowdown warning also came amid wider signs of weakness in
the EV market, after several years of robust growth.

 

In the UK, sales of electric vehicles rose last year, but failed to make
inroads against traditional cars as a portion of overall sales.

 

In China, the biggest market for such cars, manufacturers have slashed
prices as the economy slows, while in Europe, sales of battery electric cars
shrank sharply last month, falling nearly 17% compared with December 2022,
according to the European Automobile Manufacturers Association.

 

In the US, major car companies, including Ford and General Motors, have said
they are scaling back production of electric vehicles.

 

Around 1.1 million battery electric cars sold in the country last year, up
nearly 50% over 2022 and more than double 2021, according to the government.

 

Tesla said in the last three months of 2023, revenue was $25.1bn (£19.7bn),
up just 3% compared with the same period in 2022. Its profits were lower
than many analysts had expected.-bbc

 

 

 

 

Billionaire Joe Lewis pleads guilty to insider trading

UK billionaire Joe Lewis, whose family trust owns Tottenham Hotspur football
club, has pleaded guilty to insider trading in a US court.

 

Lewis, 86, was accused of passing on information about his companies to his
private pilots, friends, personal assistants and romantic partners.

 

US authorities say that the fraud netted millions of dollars in profit.

 

Lewis pleaded guilty to conspiracy and two counts of securities fraud as
part of a deal with prosecutors.

 

Lewis founded the investment firm Tavistock Group, which has ownership
stakes in a large array of property, sports, finance, energy and life
sciences companies.

 

He was ranked 39th in the 2023 Sunday Times Rich List, with an estimated
worth of more than £5bn ($6.4bn).

 

He was arrested in July 2023 and charged with sixteen counts of securities
fraud and three counts of conspiracy.

 

Prosecutors had alleged that between 2013 and 2021, he abused his access to
corporate board rooms and passed the insider information on to his contacts.

 

US attorney Damian Williams said those contacts made millions of dollars in
"sure thing" bets on the stock market.

 

In one instance, according to the indictment, Lewis told a girlfriend to
invest in a biotech company in July 2019, before the results of a clinical
trial by the company were made public.

 

He then allegedly logged into her bank account himself and used $700,000 to
invest into the company, eventually netting a profit of $849,000.

 

In another instance, Lewis allegedly wired his private pilots Patrick
O'Connor and Bryan Waugh $500,000 each to buy stock in a company, after
tipping them off with confidential information.

 

Following the loan, Mr O'Connor allegedly texted a friend "Boss lent Marty
and I $500,000 each for this" and "the Boss has inside info... otherwise why
would he make us invest".

 

Mr O'Connor and Mr Waugh have also been charged with securities fraud.

 

The indictment listed other alleged incidents of Mr Lewis telling friends,
girlfriends and employees to invest in stocks based on insider information.

 

Prosecutors also said that as part of the scheme, Lewis hid the true size of
his ownership stake in one company, Mirati Therapeutics.

 

As part of the plea deal, one of Lewis' companies, Broad Bay Ltd, also
pleaded guilty to securities fraud and was fined $50m (£39m).

 

In a statement, Mr Williams said: "Today's guilty pleas once again confirm -
as I said in announcing the charges against Joseph Lewis just six months ago
- the law applies to everyone, no matter who you are or how much wealth you
have."

 

In court in Manhattan on Wednesday, Lewis admitted he knew what he was doing
was wrong.

 

"I am so embarrassed and I apologize to the court for my conduct," he said.

 

The charges Lewis pleaded guilty to carry a total maximum sentence of 45
years in prison, although federal guidelines call for a sentence of between
18 and 24 months. The plea agreement allows Lewis to appeal the decision if
he is sentenced to prison time.

 

Lewis was born in London's East End and took over a restaurant business
started by his father before selling it to focus on currency speculation and
investments.

 

He was reportedly one of the investors who made money betting heavily
against the pound prior to "Black Wednesday" - the UK's withdrawal from the
European Exchange Rate Mechanism in September 1992.

 

In 2007 he took a stake in Wall Street investment firm Bear Stearns but
reportedly lost more than $1bn when the firm failed during the financial
crisis the following year.

 

A long-time resident of the Bahamas, Lewis' bail terms prohibited him from
leaving the United States and limited him to traveling between his
properties in New York, Florida and Georgia.

 

Lewis' family trust owns a majority stake in the holding company that
operates Tottenham Hotspur football club. But according to financial
documents the club filed with the UK's Companies House in 2022, Lewis no
longer has "significant control" over the club.-bbc

 

 

 

J&J strikes US states deal over baby powder claims

Johnson & Johnson (J&J) has said it has reached a tentative deal with more
than 40 US states over their investigation of the marketing of its
talc-based baby powder and other products.

 

The healthcare giant said it expected to pay $700m (£552m), confirming a
figure that had been reported earlier.

 

The deal would be part of a far bigger settlement the firm has been trying
to reach to resolve claims around the safety of the products.

 

J&J says they were safe for consumers.

 

But it is facing more than 50,000 cases from people who claim using its
talc-based baby powder caused cancer, including some who allege the product
contained cancer-causing asbestos.

 

The company created a subsidiary responsible for the claims in an effort to
resolve the lawsuits in bankruptcy court.

 

Last year, it proposed a nearly $9bn settlement, saying the claims were
"specious" but it wanted to move on from the issue.

 

But judges have blocked those plans, ruling that the subsidiary was not in
financial distress and could not use the bankruptcy system to resolve the
lawsuits.

 

State officials did not comment on the tentative deal.

 

Erik Haas, worldwide vice president of litigation for Johnson & Johnson,
said the company was continuing to work on a wider resolution.

 

"The company continues to pursue several paths to achieve a comprehensive
and final resolution of the talc litigation. As was leaked last week, that
progress includes an agreement in principle that the company reached with a
consortium of 43 state attorneys general to resolve their talc claims," he
said in a statement.

 

"We will continue to address the claims of those who do not want to
participate in our contemplated consensual bankruptcy resolution through
litigation or settlement."

 

Johnson & Johnson has won a majority of the talc lawsuits against it and has
maintained the products did not contain asbestos and did not cause cancer.

 

But it has been stuck with some significant losses, including one decision
in which 22 women were awarded a judgement of more than $2bn.

 

Analysts estimate the company will end up spending more than $10bn to
resolve the legal battles.

 

A lawyer representing some of the cases from former customers said earlier
this month that the reported resolution of the state matters was "good news"
for his clients because it cleared out "distractions".

 

"We need... attention focused on getting to a global talc powder settlement
in 2024. This helps," Ronald Miller said in a statement.

 

Johnson & Johnson stopped US sales of its talc-based baby powder in 2020,
citing "misinformation" that had sapped demand for the product, applied to
prevent nappy rash and for other cosmetic uses, including dry shampoo. It
later announced plans to end sales globally.

 

Before that decision, the company had sold the baby powder for almost 130
years. It continues to sell a version of the product that contains
corn-starch.-bbc

 

 

 

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2024

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


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
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opinions expressed and recommendations made are subject to change without
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companies typically involve a higher degree of risk and more volatility than
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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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