Major International Business Headlines Brief::: 29 July 2019

[Bulls n' Bears]

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Major International Business Headlines Brief::: 29 July 2019

 


 

 


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*  UAE's Dana Gas hires adviser to sell Egypt assets -sources

*  Israel's Spacecom looks to rebound from rough patch with Africa satellite

*  Mining mogul Agarwal made just 6% profit on Anglo investment - Reuters estimate

*  Tanzania's economic growth slows in first quarter as construction softens

*  Africa must boost industrial capacity to benefit from free-trade zone -AfDB

*  Fitch downgrades outlook on South Africa's credit rating

*  S.African treasury says it is aware of Eskom risk after Fitch cuts outlook

*  Johannesburg court approves $353 mln silicosis settlement

*  South Africa's rand, bonds tumble as Moody's and Fitch warn of Eskom risk

*  S.Africa's cenbank governor says will look to keep lending rates predictable

*  Business lobby group CBI says UK not ready for no-deal Brexit

*  Student debt: The teachers told they had taken out the wrong kind of loan

*  US economic growth slows below Trump target

*  Trump threatens tariffs against 'foolish' Macron

*  California and carmakers agree emissions deal despite Trump rules

*  Ofcom fines Russian news service £200,000 over impartiality

 

 

 


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UAE's Dana Gas hires adviser to sell Egypt assets -sources

LONDON/DUBAI (Reuters) - United Arab Emirates’ Dana Gas has hired investment bank Tudor, Pickering, Holt & Co. (TPH) to advise it on the sale of its Egyptian assets, worth over $500 million, two sources familiar with the matter said, as the company shifts its focus to its Kurdistan operations.

 

The Abu Dhabi-listed energy producer - whose main assets are in Egypt and in the Kurdistan Region of Iraq (KRI) - has been considering an alternative listing in London, and focusing on a single geographical area could be appealing to future investors in the company, said one of the sources. The sources did not wish to be identified because the information has not been made public.

 

A spokesman for Dana Gas declined to comment while TPH did not immediately respond to a request for comment, sent outside working hours.

 

Dana’s exploration and production assets in Egypt are onshore the Nile Delta except for Block 6 in the Eastern Mediterranean Sea.

 

In May Dana began drilling at the offshore Merak well in Block 6, saying it could hold up to 4 trillion cubic feet of gas.

 

On Sunday Dana said in a bourse filing that the drilling has not found commercial hydrocarbons and that the well is being abandoned. It added its operations in Egypt continue production normally.

 

The gas producer started marketing its Egyptian assets over the past few weeks and while it has received interest from the market there are no buyers lined up yet, said the first source, who added the assets are worth “well over $500 million.”

 

The decision to sell in Egypt is “strategic” as Dana wants to focus its resources on investments in KRI, where it has large capital expenditure requirements and sees potential for growth, the source added.

 

In a second bourse filing on Sunday, Dana said a new independently audited report showed the fields in which it has stakes in KRI could be “the biggest gas fields in the whole of Iraq”.

 

Pearl Petroleum, a consortium majority-owned by Dana Gas and its affiliate Crescent Petroleum, plans to increase gas production from the KRI’s Khor Mor field to 650 mmscf per day by 2022 and 900 mmscf per day by 2023, Dana said.

 

The expansion plan, worth some $700 million, will include adding two new production trains as well as drilling new wells to raise output from the current 400 mmscf a day, Dana Gas and Crescent Petroleum said in March, when they announced a 20-year gas sales deal with the Kurdistan Regional Government.

 

In May, Dana’s Chief Executive said Pearl Petroleum would raise funding for the KRI investments through several types of financing.

 

Dana’s 2019 capital expenditure for Iraqi Kurdistan was estimated at $70 million-$90 million, while its capex for Egypt this year would have been about $90 million, he said at the time.

 

Dana Gas, which at the end of this year’s first quarter had a cash balance of $442 million, rocked the world of Islamic finance in 2017, when it halted payments on $700 million in sukuk saying the instruments had become unlawful in the UAE.

 

After a protracted and complex legal dispute it reached a consensual restructuring agreement with its creditors in May last year.

 

 

 

 

 

 

 

 

 

 


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Israel's Spacecom looks to rebound from rough patch with Africa satellite

TEL AVIV (Reuters) - Israel’s Space Communication Ltd plans a satellite launch next weekend which it hopes will mark a rebound from a couple of major setbacks in recent years.

 

Amos-17, which will provide communication services to Africa, had a total budget including manufacturing, insurance and launch of about $250 million, and will join three others Spacecom operates.

 

It was manufactured by Boeing Co and has an expected lifespan of about 20 years.

 

Spacecom hopes a successful launch from Cape Canaveral, Florida, on Aug. 3 will end a rough patch. In 2015 the company lost contact with its Amos-5 satellite and a year later Amos-6 was destroyed days before its scheduled launch when a SpaceX rocket exploded.

 

“We learned lessons from those catastrophes,” CEO David Pollack told Reuters on Sunday following a news conference. For example, he said Amos-17 would not be combined with the launcher before the latter is fully tested.

 

“What happened with Amos-5 and Amos-6 was a setback for the company. So we know what to do. We believe we know how to grow. And it’s just a wonderful opportunity that comes with Amos-17, which is the most advanced satellite for the continent most in need,” Pollack said.

 

Amos-17 is scheduled to launch on a SpaceX Falcon 9 rocket and will orbit 36,000 kilometers above central Africa, providing TV, internet and cellular services as well as services to governments.

 

The company said it has a sales backlog of $58 million for communication services to Africa and for other services.

 

Pollack said he expects to recoup Amos-17’s costs in line with industry standards, which is about six to seven years.

 

Spacecom shares remain well below their peak of 78.30 shekels set in June 2010 but have rallied in recent weeks and closed at 11.60 shekels on Friday.

 

 

 

Mining mogul Agarwal made just 6% profit on Anglo investment - Reuters estimate

LONDON (Reuters) - Mining mogul Anil Agarwal pocketed just 6% profit from his 3.5 billion pound ($4.3 billion) investment in Anglo American, held since 2017, even though the underlying shares rose over 50% since then, according to Reuters estimates.

 

Agarwal’s family vehicle Volcan Investments, the biggest shareholder in Anglo, said on Thursday it would unwind its almost-20% stake in the South African miner by repaying debt with 247.1 million Anglo shares.

 

After paying back the loan, Volcan would have been left with a 1.9% stake that was sold in the open market for 519 million pounds on Thursday. This makes up his gross profit from the whole investment, according to a source familiar with the deal.

 

Once coupon payments and the investment banking fees are accounted for, the sum dwindles to 196.25 million-213.7 million pounds, or 5.7%-6.1% of the original deal size, a Reuters calculation shows.

 

Under the terms of the original deal, Volcan borrowed 3.5 billion pounds through the issuance of a mandatory convertible bond arranged by U.S. investment bank JPMorgan to fund the acquisition.

 

The convoluted structure, dubbed “POEMS” (Purchaser of Equity via Mandatory Securities) by JPMorgan, is a variation of the more traditional “exchangeable bond” format, where a borrower issues debt that can be converted into shares of another company.

 

Volcan Investments and JPMorgan declined to comment.

 

The first bond would have matured in April 2020, if the Indian billionaire had not cashed out, dashing speculation that he was preparing to take over the 30.8 billion pound diversified miner.

 

The nature of the convertible bond issuance, however, meant that Agarwal’s profit was just a fraction of the London-listed miner’s massive increase in value of an average 7 pounds per share over the past two years.

 

Agarwal’s gross profit is the 24.7 million shares, or about 1.9% of Anglo, he was left with after repaying the bond. JP Morgan arranged a sale of those shares for 519 million pounds on Thursday.

 

On top of that, there is the 4% coupon paid on the debt, which comes at about 280 million pounds over a two-year period, and the fees paid to JPMorgan.

 

M&A consultancy Freeman Consulting Services said convertible bonds issued by Anglo American typically garner fees of around 0.75%-1.25% of the transaction size.

 

Assuming JPMorgan charged Volcan a similar fee for this convoluted structure, the total cost to Agarwal is 26.25 million to 43.75 million pounds.

 

($1 = 0.8065 pounds)

 

 

 

Tanzania's economic growth slows in first quarter as construction softens

DAR ES SALAAM (Reuters) - Tanzania’s economic growth slowed to 6.6% year-on-year in the first quarter of 2019 from 7.5% in the same period a year earlier, official data showed on Sunday, weighed down by softer construction, agriculture and manufacturing activity.

 

A leaked report from the International Monetary Fund said earlier this year that Tanzania’s economy has not been expanding as fast as official figures suggest. It said lower growth was partly due to President John Magufuli’s “unpredictable and interventionist” policies.

 

In the first quarter, construction, the biggest driver of GDP, grew 13.2%, compared with 15.6% a year ago, the state-run National Bureau of Statistics (NBS).

 

However, growth in the mining sector, which has been the target of repeated government interventions, rebounded to 10.0% from a 5.7% decline during the same period in 2018. Tanzania is Africa’s fourth-largest gold producer.

 

“The growth (of the mining sector) was mainly due to an increase in production of gold, coal and diamonds,” said NBS.

 

Magufuli embarked on an ambitious programme of industrialisation after coming to power in late 2015, investing billions of dollars in infrastructure, including a new rail line and a major hydropower plant and reviving the national airline.

 

But critics say government intervention in mining and agriculture have discouraged investment. Foreign direct investment has slumped and private sector lending growth dropped below 4% in 2018, from an average of 20% between 2013-16.

 

Agriculture, which accounts for about a third of economic activity, also slowed in the first quarter of this year, with crop production growing 6.0% compared to 8.9% in the same period last year, the statistics bureau said.

 

Last year the government sent the military to seize the cashew harvest, the main export crop, after complaints by farmers that prices offered by brokers were too low.

 

Manufacturing, another key GDP contributor, grew 4.8% in the first quarter compared with 5.3% a year earlier.

 

Tanzania’s economy grew 7% last year, according to the government which has forecast 7.1% growth in 2019.

 

Earlier this month, however, the World Bank released its own estimates that said Tanzania’s economy grew 5.2% in 2018.

 

Following the World Bank report, Tanzania said it might revise its 2018 GDP growth rate after meetings in August.

 

In April, a leaked report from the International Monetary Fund predicted lower growth of around 4-5% in the “medium-term”.

 

The IMF report said there were serious weaknesses in Tanzania’s official data.

 

 

 

Africa must boost industrial capacity to benefit from free-trade zone -AfDB

ABUJA (Reuters) - African nations will need to boost output of goods and services and integrate payment systems if they are to take advantage of a new $3.4 trillion economic initiative, according to the head of the African Development Bank.

 

A continental free-trade zone was launched this month in Niger which, if successful, will usher in a new era of development for an area with a population of 1.3 billion people.

 

It is hoped that the 55-nation African Continental Free Trade Area - the largest bloc since the creation of the World Trade Organization in 1994 - will help unlock Africa’s long-stymied economic potential by boosting intra-regional trade, strengthening supply chains and spreading expertise.

 

Akinwumi Adesina, president of the AfDB, said he expected industrial manufacturing capacity in Africa to increase, while financial markets would integrate and food production expands.

 

“Africa has to have its own industrial capacity ... it’s not just about moving raw materials, it’s about value added products,” Adesina told Reuters on the sidelines of an conference in Nigeria’s capital city of Abuja.

 

The bank chief said African countries need to mobilise more domestic resources, and encourage sovereign wealth and pension funds to invest in infrastructure.

 

“We brought investors to Africa and in less than 72 hours we mobilised $38.7 billion,” he said. “That tells me that the opportunities are there, if we can get the regulatory and investment environment right.”

 

He said nations need to provide the right incentives to boost local output while encouraging competition.

 

 

 

Fitch downgrades outlook on South Africa's credit rating

JOHANNESBURG (Reuters) - Ratings agency Fitch downgraded the outlook for South Africa’s sub-investment credit rating on Friday, citing fiscal pressures including increased support for struggling state firms such as the power utility Eskom.

 

South Africa’s public finances are under huge strain as economic growth has proved weaker than expected while a handful of state companies have needed large government cash injections.

 

The government this week proposed giving Eskom 59 billion rand ($4.1 billion) of additional financial support over the next two years, on top of an already-promised bailout of 230 billion rand spread over the next decade.

 

Fitch now rates South Africa’s debt at ‘BB+’, a notch below investment grade, with a negative outlook.

 

The firm said it forecast the consolidated general government deficit would widen to 6.3% of gross domestic product (GDP) in the current fiscal year, from 4.2% last year.

 

In a statement that also highlighted political risks, Fitch said: “Continued infighting within the African National Congress is likely to draw attention away from policymaking.”

 

“Downward revisions to GDP growth in 2019 also raise new questions about South Africa’s GDP growth potential,” it added.

 

The Finance Ministry said it was aware of the risk that state firms such as Eskom presented and that it was developing a broad strategy for Eskom’s future.

 

Eskom is expected to publish financial results next week which will show the extent of the crisis at the utility.

 

($1 = 14.2575 rand)

 

 

 

 

S.African treasury says it is aware of Eskom risk after Fitch cuts outlook

JOHANNESBURG (Reuters) - South Africa is aware of the “strain and risk” posed by failing state firms, particularly Eskom, and will do more to contain debt, National Treasury said on Friday after the ratings firm Fitch downgraded its credit outlook to negative from stable.

 

“Government is aware of the strain and risk that state-owned companies, particularly Eskom, present to the fiscal framework,” the treasury said in a statement.

 

“A team of officials led by Directors-General of National Treasury and Public Enterprises have considered a number of options as a solution to Eskom’s debt challenge in order to ensure its sustainability, and the most viable of these will be communicated in due course.”

 

 

 

 

Johannesburg court approves $353 mln silicosis settlement

JOHANNESBURG (Reuters) - A Johannesburg High Court on Friday approved a 5 billion rand ($353 million) class action settlement between gold mining companies and law firms representing thousands of miners who contracted the fatal lung diseases silicosis and tuberculosis.

 

The settlement follows a long legal battle by miners to win compensation for illnesses they say they contracted over decades because of negligence in health and safety.

 

“All the parties made an effort to ensure that the settlement agreement is reasonable, adequate and fair,” the High Court said in its judgement.

 

The gold producers agreed in May last year to the settlement but it needed to be approved by the Johannesburg High Court before being implemented.

 

The class action suit was launched in 2012 on behalf of miners suffering from silicosis, an incurable disease caused by inhaling silica dust from gold-bearing rocks.

 

It causes shortness of breath, a persistent cough and chest pains, and also makes people highly susceptible to tuberculosis.

 

The companies involved are Harmony Gold, Gold Fields, African Rainbow Minerals ARIJ.J, Sibanye-Stillwater SGLJ.J, AngloGold Ashanti and Anglo American South Africa. The latter no longer has gold assets but historically was a bullion producer.

 

($1 = 14.1591 rand)

 

 

 

South Africa's rand, bonds tumble as Moody's and Fitch warn of Eskom risk

JOHANNESBURG (Reuters) - South Africa’s rand tumbled to its weakest level in three weeks on Friday, while the yield on debt issued by the government and the power utility Eskom shot up as the risk grew of a credit downgrade to junk status by year-end.

 

At 1600 GMT, the rand was 1.24% weaker at 14.2650 per dollar, bringing its weekly losses to more than 3%. Almost half of that came after the ratings firm Moody’s delivered a warning about the government’s 59 billion rand ($4 billion) bailout for Eskom.

 

Fitch added to the negative news, trimming its outlook to negative from stable while retaining its BB+ rating, saying bailouts to state firms along with weak economic growth would push up the budget deficit and put added strain on state spending.

 

“The huge delay by government in announcing concrete plans about unbundling Eskom is a huge risk,” said Nedbank senior economist Isaac Mashego.

 

Finance Minister Tito Mboweni announced plans to give Eskom the extra cash on Tuesday, but warned of lower-than-expected tax revenues and higher public debt levels as a consequence. He did not give any definite detail on the promise to break up Eskom into three individual parts.

 

“Moody’s last credit review, and the statement this week, included Eskom’s debt with the sovereign, which is something they don’t usually do. And the tone was stern,” Mashego said.

 

“If there’s another delay in giving details about Eskom at the October budget, Moody’s will very likely pull the trigger.”

 

The risk premium, or yield, on Eskom bonds had fallen steadily since the end of May as the power cuts that it had been imposing earlier in the year eased, drawing mainly offshore investors looking to take advantage of returns often higher than for government paper.

 

On Friday, the yield on government dollar bonds rose to its highest level in more than a month, and the yield on Eskom’s 2033 dollar bond rose to its highest since February.

 

Government bonds mirrored the upturn in risk and souring demand, with the yield on the benchmark 10-year paper climbing 18 basis points to 8.54%, its highest since June 18.

 

“There’s been a plethora of political and economic developments that have pushed the rand weaker. And it’s a clear laggard compared to its peers. Without the support of a prudent central bank, it could really have blown out,” said ETM Analytics economist Kieran Siney.

 

The South African Reserve Bank (SARB) cut lending rates last week but cooled expectations of further reductions, and on Friday emphasised its preference for caution.

 

Stocks traded sideways as Eskom’s woes chipped away at appetite for domestic equities.

 

The benchmark JSE Top-40 Index dipped 0.08% to 51,523 points while the broader All-Share Index was also down 0.08% at 57,616 points.

 

The banking sector, typically sensitive to the local economy and currency fluctuations, fell 1.26%, while general retailers fell 1.21%.

 

“Our banks and retailers are weak, as is the rand, and I think that’s got to do with political constraints,” said Andrew Padoa, portfolio manager at Sasfin. ($1 = 14.2559 rand)

 

 

 

S.Africa's cenbank governor says will look to keep lending rates predictable

PRETORIA (Reuters) - South Africa’s central bank will seek to keep lending rates predictable and in line with its inflation targeting mandate to support a flagging economy, Governor Lesetja Kganyago said on Friday.

 

“A more stable and predictable path of interest rates will enhance the environment for sustained economic growth,” Kganyago said at the Reserve Bank’s annual general meeting.

 

The country suffered a decline in first-quarter economic growth of 3.2%, the worst in a decade, as power outages by state utility Eskom hit mining, manufacturing and retailers.

 

In response, the bank reduced benchmark rates by 25 basis points to 6.5% on July 18. However, the bank poured cold water on further cuts, saying it would watch the policy path followed by developed market central banks and local price-growth.

 

June consumer inflation remained stready at 4.5%, data showed on Wednesday, at the exact midpoint of the bank’s target range of between 3% and 6%.

 

The bank’s Quarterly Projection Model forecasts consumer prices averaging 5.1% in 2020 and 4.6% in 2021.

 

Kganyago hinted again in a speech on Wednesday that the regulator was considering a move to a definite target for inflation, a suggestion seen as a dovish turn by some analysts.

 

On Friday, however, he warned that the persistence of subdued inflation was “not certain, meaning that the MPC will continue to exercise vigilance in the years ahead”.

 

 

 

Business lobby group CBI says UK not ready for no-deal Brexit

The Confederation of British Industry (CBI) has warned the government that neither the UK nor the EU is ready for a no-deal Brexit on 31 October.

 

"While the UK's preparations to date are welcome, the unprecedented nature of Brexit means some aspects cannot be mitigated," said the CBI.

 

It has published practical steps it says the UK, EU and firms can take.

 

A government spokesman said the UK has increased the pace of planning for no-deal.

 

The CBI had previously said leaving the EU with a deal was essential to protect the economy and jobs.

 

New prime minister Boris Johnson has made Michael Gove responsible for planning a no-deal Brexit.

 

Mr Gove has said the UK government is currently "working on the assumption" of a no-deal Brexit.

 

He said his team still aimed to come to an agreement with Brussels but, writing in the Sunday Times, he added: "No deal is now a very real prospect."

 

'Hampered'

The CBI's report What Comes Next? The Business Analysis Of No Deal Preparations advises what measures businesses can take to reduce the worst effects.

 

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The advice is based on a study of existing plans laid out by the UK government, European Commission, member states and firms.

 

"And although businesses have already spent billions on contingency planning for no deal, they remain hampered by unclear advice, timelines, cost and complexity," the CBI says.

 

"Larger companies, particularly those in regulated areas such as financial services, have well-thought-through contingency plans in place, though smaller firms are less well prepared."

 

The report is based on thousands of interviews with firms of all sizes and sectors, including 50 trade associations, covering all areas of the UK economy.

 

The CBI says that in a no-deal Brexit some 24 of 27 areas of the UK economy would experience disruption.

 

The UK had been due to leave the EU on 29 March, but former Prime Minister Theresa May asked for an extension and the date was pushed back to 31 October.

 

A UK Government spokesperson said: "This is a constructive contribution from the CBI, acknowledging the importance of all businesses preparing for no deal on the 31 October.

 

"While we have done more to prepare than this report implies, since the new Prime Minister was appointed the Government has stepped up the pace of planning for no deal. The Chancellor has confirmed all necessary funding will be made available for vital no deal preparations. This includes funding for a major nationwide communications campaign to ensure that people and businesses are ready.

 

"Crucially, while there is more to do, the CBI observes that the UK is ahead of the EU in planning for no deal."00BBC

 

 

 

Student debt: The teachers told they had taken out the wrong kind of loan

An art teacher who started paying off her student loans more than a decade ago still owes about $88,000 (£71,000) - despite being promised the loan would have been written off by now. How has that happened?

 

Kelly Finlaw has a little speech that she recites at the start of each academic year to her students at the New York middle school where she teaches. It might get repetitive for the students in the seventh and eighth grades, but she does it anyway. It's important to her.

 

"I'm not an art teacher because I want to teach you about art," she tells them. "I teach because I care about YOU and I want you to be more confident, more expressive and more of your true selves after the year is over.

 

"I teach art because I love you as people and art gives me an avenue to invest in who you are."

 

She's also the kind of teacher who puts together a video slideshow of her pupils to congratulate them as they leave the public school. The kind whose pupils get sad when they graduate or head off on spring break. The kind who spends her own money on art supplies for the classroom.

 

'There's no paying it off'

But Ms Finlaw, 36, is also the kind of teacher who feels that she's not received that same investment from the government as she puts into her students.

 

The kind of teacher who was told that she was eligible for student loan forgiveness - that is, having the outstanding balance paid off - after making payments for 10 years, only to be told she had the wrong kind of loan. And that actually, she had another decade ahead of her of making monthly repayments of hundreds of dollars a time.

 

She thinks she originally started with $100,000 of debt, but hasn't been able to get hold of her own records.

 

"I'm going to die with this debt," she says. "There's no paying it off."

 

She is one of eight people named in a joint lawsuit against the Department of Education and Education Secretary Betsy DeVos over what they say is the mismanagement of the Public Service Loan Forgiveness (PSLF) programme.

 

Student debt in figures

America's outstanding student loan balance, as of 31 December 2018, totals $1.4tn

The Department of Education says approximately 13 million people receive more than $120bn each year in federal student loans, grants and work-study funds

According to a Harvard University study, 42% of 18 to 29-year-olds have student loan debt

70% say financial circumstances played a role in their decision on whether or not to go to college, according to the study

It was introduced in 2007, intended to encourage people to take up careers in public service - relieving the burden of student debt for those like nurses, teachers and police officers.

 

To qualify, you have to work full-time and make 120 monthly payments. Then, the theory is, the rest of your loan will be "forgiven", that is, paid off. But only a small percentage of people applying, after the 10 years have passed, have had their loans repaid - something the lawsuit is seeking to rectify.

 

According to the department's most recent report, 73,554 borrowers have applied for loan forgiveness since October 2017 - the first date people could apply - and the total number of applications is 86,006. Of those, 864 applications have been approved, with a total of 518 having their loan discharges processed. So far, 75,138 applications have been rejected, the most common reasons being over making qualifying payments, missing information and there being no eligible loans.

 

For its part, the Department of Education is saying that it is committed to the scheme. It also introduced an online help tool last year for borrowers wanting more information on PSLF.

 

Liz Hill, press secretary at the Department of Education, said: "The department doesn't comment on pending litigation, but I would point out, that the department is faithfully administering the complex programme Congress passed."

 

'Wrong type of loan'

Ms Finlaw, who grew up in Ohio and studied in Indiana and Philadelphia, started teaching before PSLF was introduced. Having taken out loans to cover her education, when she was told she was eligible, she joined the scheme.

 

"But after 10 years, the federal loans company told me 'your loan's not forgiven, one of your loans did not qualify'. I said 'what's the deal?' - and they told me it wasn't the right type."

 

That meant, she was told, she had another 120 payments to make. Another 10 years until the weight of debt was taken off her shoulders.

 

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Ms Finlaw sounds more resigned than bitter as she says: "I had a lot of hope it was the light at the end of the tunnel for my payments. I really thought my financial situation was going to be altered. And then I get the letter back. I almost wasn't surprised. But I felt duped. Like I should have known better."

 

Only direct loans, issued by the Department of Education, qualify under the programme - rather than commercial loans guaranteed by the federal government. But Ms Finlaw says she wasn't told she had the wrong kind of loan for years.

 

She feels that it's "demoralising as a teacher to give your life to it, and not be recognised as a vital component" of society. Often people think it's easy being a teacher, she muses - they just see the hours and the days off.

 

"The loan not being paid off is totally linked to this attitude. There's no respect for what we do, there's no validation that our work matters," she adds.

 

 

"I love my school," she says. "But we don't have a gym or an auditorium. I buy my own art supplies. We're giving kids the very best education we possibly can and our kids love the school.

 

"You do that for 10 years. You pay loans that are crippling you financially and then at the end, someone says 'whoops, sorry - you have 10 more years'."

 

Lena Konanova, representing the teachers, says there was a lack of clear process from the government. She says the department and secretary have "grossly mismanaged this public service loan forgiveness programme" and that "this violates the law".

 

Ms Konanova says those applying do not know what the denial has been based on so they're not able to rebut it, adding: "They've been told a decade later that they've had the wrong type of loan."

 

She says the next step is for the Department of Education and Ms DeVos to answer the complaint - they have 60 days to do so.

 

'Unrealistic'

While she feels winning the court case would be justice for her, ultimately Ms Finlaw wants accountability, dignity for teachers and "a programme that follows through with its promises".

 

"I want people to be able to get their loans paid back without having to go through a lawsuit," she adds.

 

Ms Finlaw recently looked into buying her own apartment, as she is currently renting.

 

"I wanted to invest in something I could have for myself, something I could make money on down the road," she says. "But I contacted a real estate agent and he said: 'There's nothing you'll be able to get, it's unrealistic."

 

Despite this, she will be back at the school she loves in September, with the supplies she has bought with her own money. During the year, they will learn about Salvador Dali and Keith Haring, perspective and pointillism. In December, just before Christmas, the entire school will make gingerbread houses.

 

But she will start the year by telling her students, new and old, as she always does: "I'm not an art teacher because I want to teach you about art..."--BBC

 

 

 

US economic growth slows below Trump target

The US economy grew less than previously thought last year, missing President Donald Trump's target of 3%.

 

Revised official figures shows that GDP expanded by 2.5% during 2018.

 

The figures also revealed that growth slowed during the second quarter as exports declined and companies invested less in their businesses.

 

GDP grew at an annual rate of 2.1% between April and June, ahead of expectations but below 3.1% recorded in the first three months of the year.

 

Growth in the second quarter was better than the 1.8% expansion forecast, and was supported by stronger consumer spending and a jump in government spending.

 

However, the pace fell short of the first quarter as both foreign trade and business investment shrank as the US continued its trade war with China.

 

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Nancy Curtin, chief investment officer of Close Brothers Asset Management, said: "Growth has come off the boil in the US, but investors should not be too downbeat; it has beaten expectations.

 

"While slower growth reflects the global impact of the ongoing trade tensions and export slowdown, the labour market and productivity improvements have provided a bright spot in recent weeks."

 

 

The data has emerged ahead of a key US Federal Reserve meeting next week when it is widely expected to cut interest rates.

 

Ian Shepherdson, chief economist at Pantheon Macroeconomics, said: "This economy is not broken, and it does not need Fed action to fix it - but it will get it."

 

'Tantrums'

Jerome Powell, chairman of the US Fed, has been the subject of a number of attacks by Mr Trump who wants the central bank to cut rates to stimulate the economy.

 

On Friday, the President launched another salvo at the central bank via Twitter, saying 2.1% growth is "not bad considering we have the very heavy weight of the Federal Reserve anchor wrapped around our neck".

 

Neil Wilson, chief market analyst at Markets.com, said that an interest rate cut by the Fed next week was more likely to be "fine tuning rather the start of an easing cycle that involves several cuts".

 

"The only problem with that is the Fed will instantly come under attack from both the markets and Trump," Mr Wilson said.

 

"The growth number just confirms a sense that the Fed is no longer data dependent, but at the mercy of tantrums - both in financial markets and the White House."--BBC

 

 

 

Trump threatens tariffs against 'foolish' Macron

US President Donald Trump has accused French President Emmanuel Macron of "foolishness" over a digital services tax, and hinted that he would tax French wine in retaliation.

 

Mr Trump voiced his anger in a Tweet on Friday, in response to French plans to tax multinational firms like Google.

 

French authorities argue that the firms pay little or no corporate tax in countries where they are not based.

 

The Trump administration has said the tax unfairly targets US tech giants.

 

"France just put a digital tax on our great American technology companies. If anybody taxes them, it should be their home Country, the US," Mr Trump wrote on Twitter.

 

"We will announce a substantial reciprocal action on Macron's foolishness shortly. I've always said American wine is better than French wine!"

 

The French tech tax upsetting the US

Facebook quizzed in court on EU-US data transfers

Trade wars, Trump tariffs and protectionism explained

Asked about the issue in the Oval Office later, Mr Trump, who is teetotal, said: "I've always liked American wines better than French wines. Even though I don't drink wine. I just like the way they look."

 

The US is the world's largest consumer of wine and the largest import market, with France consistently among the top origin countries for imported wine.

 

French Finance Minister Bruno Le Maire responded on Friday by saying that France would stick to its digital tax plans. "Universal taxation of digital operations is a challenge that affects us all," he said.

 

President Macron and President Trump earlier on Friday discussed the need for an international agreement on taxing digital tech giants, the French president's office said.

 

The French government argues that multinational firms such as Apple, which are headquartered outside the country, pay little or no tax on their sales in France. The digital sales tax was approved by the French senate on Thursday, a week after it was passed by the lower house, the National Assembly.

 

Any digital company with revenue of more than €750m ($850m; £670m) - of which at least €25m is generated in France - will now be subject to the tax, which will be retroactively applied from early 2019 and is expected to raise about €400m in revenue this year.

 

Earlier on Friday, President Trump warned US tech giant Apple that it would not be given any tariff relief on parts made in China. "Make them in the USA, no Tariffs!" he wrote.

 

Why target tech giants?

At present, they are able to pay little or no corporate tax in countries where they do not have a large physical presence. They declare most of their profits where they are headquartered.

 

The European Commission estimates that on average traditional businesses face a 23% tax rate on their profits within the EU, while internet companies typically pay 8% or 9%.

 

France has long argued that taxes should be based on digital, not just physical presence. It announced its own tax on big technology firms last year after EU-wide efforts stalled.

 

An EU levy would require consensus among members, but Ireland, the Czech Republic, Sweden and Finland raised objections. France's new 3% tax will be based on sales made in the country, rather than on profits.

 

Defending the new tax on Thursday, Mr Le Maire had said France was "sovereign and decided its own tax rules".

 

"I want to tell our American friends that this should be an incentive for them to accelerate even more our work to find an agreement on the international taxation of digital services," he said.

 

About 30 companies will pay it - mostly US groups such as Alphabet, Apple, Facebook, Amazon and Microsoft. Chinese, German, Spanish and British firms are also affected, as well as the French online advertising firm Criteo.

 

The French government says the tax will end if a similar measure is agreed internationally. The big tech companies have argued they are complying with national and international tax laws.

 

Prior to Mr Trump's tweet on Friday, US Trade Representative Robert Lighthizer had announced an investigation into the French tax, arguing that France was "unfairly targeting the tax at certain US-based technology companies".--BBC

 

 

 

California and carmakers agree emissions deal despite Trump rules

Four major carmakers have struck a deal with California on fuel efficiency rules, despite an attempt by the Trump administration to strip the state of the right to set its own standards to fight climate change.

 

California negotiated with Ford, Honda, Volkswagen and BMW in secret.

 

Along with a dozen other US states, it has vowed to enforce stricter Obama-era emissions standards.

 

President Trump wants to roll back federal rules on car emissions.

 

Last year, his administration proposed a rule to axe tougher mileage and greenhouse gas emissions requirements enacted by his predecessor.

 

It also proposed revoking California's right to impose state emissions standards or require more electric vehicles.

 

The White House has said "the federal government, not a single state, should set this standard. We are moving forward to finalise a rule for the benefit of all Americans".

 

Trump's environmental rollback rolls on

Five reasons the car industry is struggling

Why are more and more car companies teaming up?

California Governor Gavin Newsom announced the agreement on Thursday. "California, a coalition of states, and these automakers are leading the way on smart policies that make the air cleaner and safer for us all," he said.

 

"I now call on the rest of the auto industry to join us, and for the Trump administration to adopt this pragmatic compromise instead of pursuing its regressive rule change. It's the right thing for our economy, our people and our planet."

 

California accounts for about 12% of US vehicle sales, and if the federal administration recognises the deal, it would allow carmakers to operate under one set of rules across the country.

 

"These terms will provide regulatory stability, preserve vehicle affordability for customers, reduce compliance costs and result in increased environmental benefits," the manufacturers said in a statement.

 

Media captionClimate change: How 1.5C could change the world

The California agreement, which is voluntary, is slightly less restrictive than the Obama standards and can apply to vehicles sold nationwide.

 

Under the framework, by 2026, new models would meet a standard of 50 miles per US gallon (4.7 litres per 100km), against the current 37 mpg level.

 

Increased fuel efficiency means vehicles burn less petrol and emit fewer polluting greenhouse gases into the atmosphere.

 

Last year, the Trump administration proposed revoking California's right to impose state emissions standards or require more electric vehicles.--BBC

 

 

 

Ofcom fines Russian news service £200,000 over impartiality

Ofcom has fined a Russian news service £200,000 for "a serious breach" of impartiality rules in several news and current affairs programmes.

 

The broadcasting regulator said RT's breaches included reports on the poisoning of Sergei and Yulia Skripal in Salisbury and the Syria conflict.

 

Ofcom has instructed RT, formerly Russia Today, to broadcast a summary of its findings.

 

The Kremlin-funded broadcaster called the fine "disproportionate".

 

The alleged breaches occurred in seven programmes broadcast between March and April 2018, an investigation by the regulator found in December.

 

The programmes were mostly in relation to major matters of political controversy including the Ukrainian Government's position on Nazism and its treatment of Roma Gypsies.

 

Two of the seven programmes featured former MP George Galloway.

 

Russian news channel RT 'broke TV rules'

Russia to check BBC News after RT censured

Ofcom said: "RT's failings were a serious breach of our due impartiality rules, which protect public trust in news and other programmes," adding RT's breaches represented serious and repeated failures of compliance with its rules.

 

RT has denied the breaches and has launched legal proceeding against Ofcom's ruling. The watchdog said it would not enforce the fine until the proceedings have been concluded.

 

In a statement, RT said: "It is very wrong for Ofcom to have issued a sanction against RT on the basis of its breach findings that are currently under Judicial Review by the High Court in London.

 

"While we continue to contest the very legitimacy of the breach decisions themselves, we find the scale of proposed penalty to be particularly inappropriate and disproportionate per Ofcom's own track record."

 

RT claimed other breaches of the broadcasting code "involving hate speech and incitement to violence have been subject to substantially lower fines".--BBC

 

 

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2019

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


Bindura Nickel Corporation

 

 

 


Padenga Holdings

 

 

 


Delta Corporation

 

 

 


Meikles Limited

 

 

 


 <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 sources 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 sourced from third parties.

 


 

 


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