Major International Business Headlines Brief::: 06 April 2018

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Major International Business Headlines Brief::: 06 April 2018

 


 

 


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*  Zimbabwe wants mining companies to list on local exchange

*  South African glassmaker Consol eyes stock market return

*  Kenya to set up mortgage refinancing company to meet housing demand

*  Botswana's power utility lifts tariffs by 10 pct

*  Kenyan shilling, Zambia's kwacha to firm, Nigeria's naira to hold steady

*  Sudan plans sukuk worth almost $1 billion this year-finance minister

*  South Africa signs $4.7 bln of delayed renewable energy deals

*  Kenya private-sector activity grows in March

*  South Africa business confidence index down in March

*  Tunisia says to tender for $1 bln solar, wind projects

*  Entire contents of Heathrow Terminal 1 to be sold off

*  Trump threatens further $100bn in tariffs against China

*  Google should not be in business of war, say employees

*  US trade deficit widens in February

*  HSBC leaks: Spain rejects Swiss request to remand Falciani

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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Zimbabwe wants mining companies to list on local exchange

HARARE (Reuters) - Zimbabwe wants mining firms to list on the local bourse as part of efforts under new president Emmerson Mnangagwa to boost investment and local ownership of its vast mineral resources, a new bill before parliament showed.

 

Mnangagwa, who took power in November when the military ousted Robert Mugabe after nearly four decades, has vowed to revitalise the economy and unlock investment in the mining sector after years of reticence by foreign investors.

 

“No mining right or title shall be granted or issued to a public company unless the majority of its shares are listed on a securities exchange in Zimbabwe,” the bill says.

 

Companies seeking rights to mine in the platinum-rich country but already listed elsewhere must notify the mines minister and use the funds from such public offers to develop the mine in Zimbabwe, the bill said.

 

A failure to comply would mean a liability of a fine equivalent to 100 percent of the cash raised at the foreign listing or as much as 10 years in prison.

 

Industry lobby group, Chamber of Mines, said its members were not opposed to the proposal to list on the local bourse but warned that exchange may not be deep and liquid enough for companies to raise capital.

 

“Our members are not averse to listing on the local bourse but it has no capacity to meet the needs of the members,” Chief Executive Isaac Kwesu said.

 

“Mining is a capital intensive business and some of our larger mines are listed on foreign exchanges because they are able to raise large amounts for working capital and for investment.”

 

Four mining companies, including Canada’s Falcon Gold and local diversified miner RioZim, are listed on the Zimbabwe Stock Exchange, which has a market capitalisation of around $8 billion.

 

 

 

 

 

 


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South African glassmaker Consol eyes stock market return

JOHANNESBURG (Reuters) - South African glassmaker Consol intends to float on the Johannesburg bourse, it said on Thursday, a deal that could fetch around $2 billion and will mark its return to the market after more than a decade in the hands of private equity groups.

 

No date has been set for the flotation, which comes amid growing confidence among business leaders and investors that President Cyril Ramaphosa will follow through on his promises to revive the economy and bring policy certainty.

 

Private equity investors led by Brait bought Consol for 6.1 billion rand ($512 million) in 2007. They ditched its private equity ownership model by issuing shares to the public four year later.

 

“Our development plans are for aggressive growth locally and through the rest of the African continent,” Chief Executive Mike Arnold said.

 

Arnold said he expected volumes in South Africa, where the company’s four factories contribute most to its bottom line, to grow by 3 to 4 percent per year until 2021.

 

Consol is also building a factory in Ethiopia, which it expects to complete in the fourth quarter to initially add 40,000 tonnes to raise its annual output to 972,000 tonnes.

 

The company, which also operates in Kenya and Nigeria, reported a 1.6 billion rand ($134 million) in core EBITDA earnings in the year to June 30, 2017, and the public offer could fetch between 12 and 15 times that figure, bankers said.

 

Arnold declined to comment on the targeted valuation.

 

BLUE-CHIP CLIENTS

 

Consol, which counts blue chips such as Anheuser-Busch InBev, Diageo and Heineken among its customers, said the listing would allow shareholders to cash in on their 11-year investment in the company and raise money to pay down debt.

 

Goldman Sachs and BofA Merrill Lynch are working on the listing, along with South African banks RMB and Standard Bank, who will market the deal to domestic investors.

 

Other shareholders are the private equity arms of financial conglomerates Old Mutual and Sanlam and the state pension fund, Public Investment Corporation.

 

A successful floatation would be rare piece of good news for 30 percent owner Brait, whose stock has been hammered by a concerns about its biggest shareholder Christo Wiese and the performance of its British retailer New Look.

 

Wiese is tallying up losses from a share price crash in Steinhoff, a retailer in the throes of an accounting scandal which has left him seriously out of pocket and stripped off his billionaire status.

 

New Look, acquired in 2015 in a $1.2 billion deal, is struggling to pay down debt and compete on a crowded British high street, forcing Brait to slash its net asset value last November.

 

($1 = 11.9172 rand)

 

 

 

Kenya to set up mortgage refinancing company to meet housing demand

NAIROBI (Reuters) - Kenya is to set up a mortgage refinancing company to help to meet the government’s aim of providing 500,000 houses in five years as well as make it easier for banks to access long-term finance for home loans, the Treasury said.

 

The East African country has an estimated 200,000 annual housing shortfall, which is expected to rise to 300,000 by 2020. President Uhuru Kenyatta has said provision of affordable housing is one of his four key priority areas in his second term.

 

“Housing finance in Kenya remains below its potential,” the Treasury said in a document outlining the creation of the Kenya Mortgage Refinance Company (KMRC), to be owned by the state, commercial banks and financial co-operatives.

 

KMRC is expected to be licensed by the central bank in February next year, with initial debt financing of $160 million from the World Bank for lending on to financial institutions.

 

Once it starts operations, the company will raise debt from markets, including mortgage-backed bonds, to lend to banks and financial co-operatives using their mortgage loan contracts with customers as security.

 

 

Kenya had just 24,458 mortgage loans valued at $2 billion or 3.15 percent of GDP in 2015, compared with about 30 percent of GDP worth of outstanding mortgages in South Africa.

 

Lenders, among them KCB Group which has the biggest share of the mortgages, usually shy away from writing housing loans mainly due to lack of long-term deposits in the industry to match them.

 

The Treasury, which will follow Nigeria, Tanzania and Malaysia in establishing a mortgage refinancing company, hopes KMRC will help to tackle this problem through provision of long term funding to banks.

 

High interest rates have also been blamed for keeping mortgages out of the reach of many people.

 

 

 

Botswana's power utility lifts tariffs by 10 pct

GABORONE (Reuters) - The Botswana Power Corporation (BPC) said on Thursday it had increased electricity tariffs by 10 percent as the loss-making utility tries to recover costs.

 

BPC has made operating losses for years due to high import costs, non-performing assets and operational inefficiencies. That has made the company reliant on government subsidies to stay afloat, but it is now slashing costs as part of a turnaround plan.

 

The 10 percent adjustment will apply to all consumer categories and was effective from April 1.

 

“Government has approved a combination of an adjustment to existing tariffs, and a subsidy cash injection to BPC,” the power utility said.

 

BPC said it received a subsidy of 800 million pula ($83 million) for the 2018 financial year, down from about 3 billion pula in subsidies in the past two years.

 

 

BPC slashed its operational losses by 83 percent in the year ended Jan. 31, 2018, to 200 million pula, after cutting imports and overhead costs, and helped by another tariff adjustment in April 2017, BPC Chief Executive Officer Stefan Schwarzfischer said.

 

The company aims to be able to operate without a government subsidy from 2020 and Schwarzfischer said its subsidy would be reduced to 400 million pula in 2019.

 

($1 = 9.6246 pulas)

 

($1 = 9.6432 pulas)

 

 

Kenyan shilling, Zambia's kwacha to firm, Nigeria's naira to hold steady

NAIROBI (Reuters) - Kenya’s shilling and the Zambian kwacha are expected to firm on the back of increased demand for local currency, while the Nigerian naira and Ghana’s cedi are set to hold steady.

 

NIGERIA

The naira is likely to remain stable, a day after the central bank maintained its tight policy on interest rates to support currency, traders said.

 

The central bank on Wednesday kept interest rates on hold at 14 percent, a level it has retained for over a year to curb inflation and prop up the naira. The bank has also been mopping up naira liquidity to curb speculation on the currency.

 

On the official market, the naira was quoted at around 305.60, supported by the central bank. It traded at 360 per dollar for investors.

 

KENYA

The shilling is expected to strengthen against the dollar in the coming week, on the back of increased interbank borrowing of local currency to meet the credit reserve ratio.

 

On Thursday, commercial banks quoted the shilling at 100.95/101.15 per dollar, compared with 100.80/101.00 a week ago.

 

“We are seeing an uptick in the interbank rate - a case of banks borrowing to meet cycle targets,” said a trader from a commercial bank referring to the daily interbank rate of 6.4476 percent, which rose from 6.2448 percent on Wednesday.

 

GHANA

Ghana’s cedi is seen stable on sufficient dollar inflows, with the Bank of Ghana’s set to launch weekly sales to match corporate demand, analysts said.

 

On Thursday, it was trading at 4.4450 to the dollar at 1045 GMT on Thursday, compared to 4.4190 a week ago.

 

“We expect the cedi to see some stability in the week ahead, trading around the 4.43 figure on the basis of stable demand and adequate supply,” said Raphael Adubila of Accra-based Northstar Home Finance.

 

UGANDA

Uganda’s shilling is expected to trade in a narrow range, awaiting a cue from a central bank key rate decision, although moderate weakening is likely.

 

At 0932 GMT, commercial banks quoted the shilling at 3,690/3,700, weaker than last Thursday’s closing level of 3,685/3,695.

 

The Bank of Uganda’s monetary policy committee is due to meet on Monday and issue its benchmark rate. A trader said the shilling would likely tread water awaiting that decision with a “possibility of slight depreciation from importer demand.”

 

ZAMBIA

The kwacha is expected to continue trading on the front foot next week, propped by hard currency conversions by companies preparing to pay taxes due by April 15.

 

At 1030 GMT on Thursday, commercial banks quoted the currency at 9.3700 per dollar from a close of 9.400 a week ago.

 

“The local unit is expected to maintain its bullish trend in the short term as more corporates convert to settle quarterly and mid-month statutory obligations,” local commercial bank Cavmont said in a note on Thursday.

 

 

Sudan plans sukuk worth almost $1 billion this year-finance minister

TUNIS (Reuters) - Sudan wants to sell international Islamic bonds, or sukuk, worth nearly $1 billion this year to help finance the budget, its finance minister said on Thursday.

 

Sudan has been largely cut off from international financing in the past decades due to U.S. sanctions which were lifted in October.

 

Since then, officials have been trying to lure investors to its economy, which has been struggling since the south seceded in 2011, taking with it three-quarters of the country’s oil output, its main source of foreign currency and government income.

 

“The Sudanese government will issue a sukuk (worth) nearly 1 billion dollars for the first time this year,” Finance Minister Mohamed Othman Rukabi told Reuters on the sidelines of a conference in Tunis.

 

“It will be late this year to finance the 2018 budget,” he said, without giving details. “In Sudan we started already with local sukuk but it will be the first time that will issue sukuk in the international market.”

 

 

In December, parliament passed its 2018 budget and projected a budget deficit of 2.4 percent of GDP.

 

The budget projects economic growth of 4 percent in 2018, the cabinet said after approving the bill. The IMF expects growth for 2017 to come in at 3.25 percent.

 

The government is targeting a sharp fall in inflation, to reach 19.5 percent by the end of 2018 from 34.1 percent at the of end of 2017, a cabinet spokesman told reporters late on Tuesday. Inflation rose to record highs this year on the back of a weakening currency.

 

The IMF urged Sudan to let the pound float freely and to cut energy and wheat subsidies to boost growth and investment. It said Khartoum had a chance to improve the economy after the United States ended 20 years of sanctions.

 

The government has implemented some reforms, doubling the price of bread from January, which sparked two weeks of protests. The pounds has not been floated though.

 

 

South Africa signs $4.7 bln of delayed renewable energy deals

JOHANNESBURG (Reuters) - South Africa signed long-delayed renewable energy contracts worth $4.7 billion with independent power producers on Wednesday, in the first major investment deal under President Cyril Ramaphosa.

 

The signing of power purchase agreements for the 27 mostly solar and wind projects was held up for over two years under ousted president Jacob Zuma, who favoured a plan to build additional nuclear power plants.

 

It was also the subject of a last-minute legal challenge by the NUMSA labour union and Transform RSA lobby group, but a court rejected their application for an urgent interdict last week.

 

The signing represents a victory for Ramaphosa, who has promised to unlock investment and kick-start economic growth since replacing scandal-plagued Zuma in February.

 

“This will bring much-needed policy and regulatory certainty and maintain South Africa’s position as an energy investment destination of choice,” the energy ministry said in a statement.

 

Ramaphosa, a wealthy businessman, has prioritised revamping the economy and turning around struggling state-owned enterprises like utility Eskom, which will purchase power from independent producers as part of the deals agreed on Wednesday.

 

Opponents of the renewable contracts argued that Eskom could not afford the additional financial burden and that they would lead to job losses in the coal sector.

 

South Africa relies on coal-fired plants for more than 80 percent of its electricity generation, while renewables contribute around 7 percent.

 

Transform RSA, which opposed Zuma’s removal as head of state, said it would continue to fight the renewable deals and had appealed last week’s court ruling dismissing its application for an interdict.

 

“Eskom simply does not have the liquidity, cashflow and strong balance sheet to support this hideous gamble on the fiscus and state electricity supplier,” Transform RSA president Adil Nchabeleng said.

 

 

 

Kenya private-sector activity grows in March

NAIROBI, April 5 (Reuters) - Kenya’s private-sector activity improved last month at the fastest pace since January 2016 as new orders sent output to a series record, a survey showed on Thursday.

 

The Markit Stanbic Bank Kenya Purchasing Managers’ Index (PMI) for manufacturing and services jumped to 55.7 in March, from 54.7 in February, reflecting the sharpest improvement in just over two years.

 

“A survey record rise in output since data collection began back in January 2014, primarily spearheaded purchasing activity,” said Jibran Qureishi, economist for East Africa at Stanbic Bank.

 

Output rose for the fourth month in a row as new orders rolled in from both local and export markets, to meet growing customer demand.

 

March marks the fourth straight month of expansion, according to the PMI, after output contracted for seven months because of drought and political risk associated with last year’s protracted presidential election.

 

The Ministry of Finance expects the economy to expand by 5.8 percent this year, rebounding from an estimated 4.8 percent in 2017.

 

 

Qureishi said the outlook for firms could brighten further as talk grows of removal of a cap on commercial rates in Kenya.

 

“Recovering economic growth in key trading partners such as Uganda as well as the growing consensus that the interest rate capping law will either be significantly modified or abolished, should bode well for Kenya’s private sector,” he said.

 

- Detailed PMI data are only available under licence from Markit and customers need to apply to Markit for a licence.

 

 

 

South Africa business confidence index down in March

JOHANNESBURG (Reuters) - South African business confidence fell for the second month in a row in March, in a sign that momentum in the economy has slowed since a sharp rebound in the wake of Cyril Ramaphosa’s election as leader of the ruling African National Congress.

 

The South African Chamber of Commerce and Industry’s (SACCI) monthly business confidence index (BCI) declined by 1.3 index points to 97.6 in March from 98.9 in February, a survey showed on Thursday.

 

Lower import volumes, weaker retail sales growth and a subdued construction sector contributed negatively to the business climate. That was partly offset by increased exports, lower financing costs and lower inflation.

 

“The business and economic climate remained favourable in the first few months of 2018 and there was a serious attempt to eradicate the most obvious maladministration and financial mismanagement in the public sector,” SACCI said in a statement.

 

“Although there is greater hope for economic policy certainty and a pivotal role for the business, the current positive climate and momentum of business confidence should be supplemented by tangible results.”

 

Business confidence jumped after Ramaphosa’s election as ANC leader in December. He later replaced scandal-plagued Jacob Zuma as president, raising expectations that South Africa will see reforms, but attention has started to turn to whether he can follow through on promises to revamp the economy.

 

Although South Africa recently avoided a downgrade to “junk” status by ratings agency Moody’s, there are lingering concerns over the health of struggling state firms like Eskom and South African Airways.

 

Those concerns, coupled with worries over the country’s budget deficit, have dragged on business confidence.

 

 

 

Tunisia says to tender for $1 bln solar, wind projects

TUNIS (Reuters) - Tunisia will launch an international tender on April 27 to build solar and wind renewable power plants worth 2.5 billion Tunisian dinars ($1 billion), Prime Minister Youssef Chahed said at an energy conference on Thursday.

 

 

Entire contents of Heathrow Terminal 1 to be sold off

Items from baggage carousels to check-in desks are going under the hammer as the entire contents of Heathrow Airport's Terminal 1 is sold.

 

Security scanners from the terminal, which was closed down in 2015, are also being auctioned off.

 

Other things up for grabs include 15 escalators, 1950s artwork and more than 2,000 security cameras.

 

Auction firm CA Global Partners hopes to fetch a six-figure sum when the items go under the hammer on April 21.

 

Daniel Gray, from CA Global Partners, said "a sale comprising the entire contents and infrastructure of an entire major airport terminal is unprecedented".

 

He added that art by Stefan Knapp and "iconic" signage will attract collectors, while the various chairs on offer might appeal to bars and nightclubs.

 

 

Trump threatens further $100bn in tariffs against China

US President Donald Trump has instructed officials to consider a further $100bn (£71.3bn) of tariffs against China, in an escalation of a tense trade stand-off.

 

These would be in addition to the $50bn worth of US tariffs already proposed on hundreds of Chinese imports.

 

The proposal comes after China retaliated to that by threatening tariffs on 106 key US products.

 

The tit-for-tat moves have unsettled global markets in recent weeks.

 

China's Ministry of Commerce responded on Friday to Mr Trump's latest announcement, saying it would take new measures if the US followed through with its latest round of tariffs - and repeated that while it did not want a trade war, it was not afraid of one.

 

"China and the US as two world powers should treat each other on a basis of equality and with respect," said Foreign Minister Wang Yi. "By waving a big stick of trade sanctions against China, the US has picked a wrong target."

 

Analysts have warned of the risk of a full-blown trade war for the global economy and the markets and believe ongoing behind-the-scenes negotiations between the two giants are crucial.

 

Market reaction in Asia on Friday suggested investors were relatively untroubled by the latest twist in the trade spat.

 

In China, Hong Kong's Hang Seng was up 1.3% while Japan's benchmark Nikkei 225 edged down in late trading.

 

How has this unfolded?

Earlier this year, the US announced it would impose import taxes of 25% on steel and 10% on aluminium. The tariffs were to be wide-ranging and would include China.

 

China responded last month with retaliatory tariffs worth $3bn of its own against the US on a range of goods, including pork and wine. Beijing said the move was intended to safeguard its interests and balance losses caused by the new tariffs.

 

Then the US announced it was imposing some $50bn worth of tariffs on Chinese-made goods, blaming what it described as unfair Chinese intellectual property practices, such as those that pressured US companies to share technology with Chinese firms.

 

Mr Trump argues that because Beijing forces any US firms setting up shop in China to tie up with a Chinese company, US ideas are left open to theft and abuse.

 

Mr Trump reiterated in his statement on Thursday that China's "illicit trade practices" had been ignored by Washington for years and had destroyed "thousands of American factories and millions of American jobs".

 

The draft details of the $50bn to $60bn worth of tariffs were released last week when Washington set out about 1,300 Chinese products it intended to hit with tariffs set at 25%.

 

China responded this week by proposing retaliatory tariffs, also worth some $50bn, on 106 key US products, including soybeans, aircraft parts and orange juice. This set of tariffs was narrowly aimed at politically important sectors in the US, such as agriculture.

 

In Mr Trump's Thursday statement he branded that retaliation by Beijing as "unfair".

 

"Rather than remedy its misconduct, China has chosen to harm our farmers and manufacturers," he said.

 

"In light of China's unfair retaliation, I have instructed the USTR (United States Trade Representative) to consider whether $100bn of additional tariffs would be appropriate... and, if so, to identify the products upon which to impose such tariffs."

 

He said he had also instructed agricultural officials to implement a plan to protect US farmers and agricultural interests.

 

What could the impact be?

On the political front, Mr Trump's latest announcement has elicited a less-than-friendly reception from some fellow Republicans.

 

They have warned that the tariffs will hurt Americans and cost jobs. They have also said relationships the US has with its other big trading partners could be hurt.

 

US retail giants including Walmart and Target have also asked Mr Trump to consider carefully the impact the tariffs would have on consumer prices and American families.

 

On Thursday, Ben Sasse, a Republican Senator from the farming area of Nebraska, said Mr Trump's latest plan was "nuts" and that he hoped the president was "just blowing off steam".

 

"Let's absolutely take on Chinese bad behaviour, but with a plan that punishes them instead of us," he said.

 

"This is the dumbest possible way to do this."

 

Mr Sasse's comments echo sentiment pouring out of various Republican-voting farming belts in the US. America's soybean farmers are expected to be particularly hurt by Mr Trump's tariff tactics.

 

To get a sense of how things might play out for those farmers, the trade tit-for-tat could hit soybean producers in the US - and possibly around the world.

 

China, which is a big producer of soybeans itself, buys about 60% of all soybeans exported by the US.

 

It uses the product to feed farmed animals, including pigs and chickens, as well as fish. Those animals are in turn used to help feed China's enormous population.

 

China's demand for soybeans and soybean products has buoyed the price of US soybeans for some time.

 

But Beijing's tariffs against US soybeans will mostly likely see sales to China fall off, which will in turn hurt American farmers.

 

Meanwhile, China will need to set about sourcing the extra soybeans it needs from other countries.

 

India is one of the world's biggest soybean producers, and analysts there have already pointed to a potential trade war between the US and China as an opportunity for its economy.

 

Other big soybean producers are Argentina and Brazil, and some studies suggest that is where China will turn to should the current set of proposed tariffs come into force.

 

But it could end up paying more than it currently does, ultimately forcing up the price of those animals which eat soybean products. So that would mean pork, for example, China's most popular meat, could get more expensive. And food price inflation is something that will worry Beijing.

 

Beijing Deals

What China sells to the US

$462.6bn

 

The value of of goods bought by the US from China in 2016.

 

18.2% of all China's exports go to the United States

 

$129bn worth of China-made electrical machinery bought by US

 

59.2% growth in Chinese services imported by US between 2006 & 2016

 

$347bn US goods trade deficit with China

 

CIA Factbook; USTR. All data for 2016.

 

How long could this last?

China has initiated a complaint with the World Trade Organization over the US tariffs, in what analysts say is a sign that this will be a protracted process.

 

The WTO circulated the request for consultation to members on Thursday, launching a discussion period before the complaint heads to formal dispute settlement process.

 

Meanwhile, under US law, the proposed set of tariffs against about 1,300 Chinese products must now go under review, including a public notice and comment process, and a hearing.

 

The hearing is scheduled at the moment for 15 May, with post-hearing filings due a week later.

 

So, it could be some months before the USTR will announce its final findings or any decision on whether or not it will move ahead with the proposed tariffs.--BBC

 

 

Google should not be in business of war, say employees

Thousands of Google employees have signed an open letter asking the internet giant to stop working on a project for the US military.

 

Project Maven involves using artificial intelligence to improve the precision of military drone strikes.

 

Employees fear Google's involvement will "irreparably damage" its brand.

 

"We believe that Google should not be in the business of war," says the letter, which is addressed to Google chief executive Sundar Pichai.

 

"Therefore we ask that Project Maven be cancelled, and that Google draft, publicise and enforce a clear policy stating that neither Google nor its contractors will ever build warfare technology."

 

No military projects

The letter, which was signed by 3,100 employees - including "dozens of senior engineers", according to the New York Times - says that staff have already raised concerns with senior management internally. Google has more than 88,000 employees worldwide.

 

In response to concerns raised, the head of Google's cloud business, Diane Greene, assured employees that the technology would not be used to launch weapons, nor would it be used to operate or fly drones.

 

However, the employees who signed the letter feel that the internet giant is putting users' trust at risk, as well ignoring its "moral and ethical responsibility".

 

"We cannot outsource the moral responsibility of our technologies to third parties," the letter says.

 

"Google's stated values make this clear: every one of our users is trusting us. Never jeopardise that. Ever.

 

"Building this technology to assist the US government in military surveillance - and potentially lethal outcomes - is not acceptable."

 

'Non-offensive purposes'

Google confirmed that it was allowing the Pentagon to use some of its image recognition technologies as part of a military project, following an investigative report by tech news site Gizmodo in March.

 

A Google spokesperson told the BBC: "Maven is a well-publicised Department of Defense project and Google is working on one part of it - specifically scoped to be for non-offensive purposes and using open-source object recognition software available to any Google Cloud customer.

 

"The models are based on unclassified data only. The technology is used to flag images for human review and is intended to save lives and save people from having to do highly tedious work.

 

"Any military use of machine learning naturally raises valid concerns. We're actively engaged across the company in a comprehensive discussion of this important topic and also with outside experts, as we continue to develop our policies around the development and use of our machine learning technologies."

 

The internet giant is working on developing policies for the use of its artificial intelligence technologies.--BBC

 

 

US trade deficit widens in February

America's trade deficit widened in February as its international trade hit a monthly record.

 

The deficit was $57.6bn - the largest monthly gap between exports and imports of goods and services since 2008, the US Commerce Department said.

 

The figures come as President Donald Trump tries a variety of tactics to reset the balance between US imports and exports.

 

The deficit was larger than analysts predicted, as imports of services rose.

 

That reflected payments made to broadcast the 2018 Olympic Games, the Commerce Department said.

 

Overall, February imports were $262bn, rising 1.7% from January amid ramped up spending on items such as civilian aircraft, computers and food.

 

Exports also rose 1.7%, reaching $204.4bn over the month, driven by sales of oil and natural gas and automotive vehicles.

 

The US recorded a monthly deficit in goods - the focus of much of President Trump's attention - with most countries, led by China at $34.7bn. However the gap with China shrank 2.3% from January.

 

Wells Fargo analysts said they expect to see exports and imports grow in coming months, with strong domestic demand leading to further widening of the deficit.

 

Trump worries about the trade deficit - should we?

Wall Street recovers from trade war fears

However, they wrote that the rising trade tension between the US and China, which have each announced plans for tariffs on $50bn of the other's goods, are a "potential fly in that ointment".

 

"A full-blown trade war between the world's two largest economies, should one develop, probably would not cause American exports and imports to go into reverse, but it could weaken growth in trade," they wrote.

 

China has initiated a complaint with the World Trade Organisation over the US plans to impose a 25% tax on Chinese-made imports worth about $50bn for what the White House says are unfair intellectual property practices.

 

The WTO circulated the request for consultation to members on Thursday, launching a discussion period before the complaint heads to formal dispute settlement process.

 

Mr Trump has said he wants America's deficit with China to decline by $100bn.

 

Economists say focusing on deficits, rather than total trade, is misplaced.--BBC

 

 

HSBC leaks: Spain rejects Swiss request to remand Falciani

The high court in Madrid has rejected a request from Switzerland to remand in custody a whistleblower who leaked bank details of HSBC clients to authorities.

 

Hervé Falciani was detained in Spain on Wednesday but has been released pending the outcome of an extradition request.

 

Mr Falciani is not permitted to leave Spain ahead of the court's decision.

 

In 2015 the French national was sentenced in Switzerland to five years in jail for industrial espionage over the leaking of secret bank data.

 

On Thursday, the court in Madrid ordered Mr Falciani to hand over his passport and said he must appear before them every week while it considers the Swiss extradition request.

 

Mr Falciani's lawyer, Manuel Olle, said the court's measures to keep his client in the country were "quite drastic".

 

Hero? Thief? Who is Herve Falciani?

Falciani: 'There should be prosecutions'

An earlier extradition request from Switzerland prompted Mr Falciani's arrest in Barcelona in 2012. But in 2013 Spain's High Court rejected the request, arguing that the accusations were not offences in Spain.

 

 

Mr Falciani, who had worked in the IT department at HSBC's Swiss private banking unit, fled to France from Geneva in 2009.

 

He said he wanted to expose massive tax evasion via Swiss accounts. Swiss authorities say Mr Falciani stole and attempted to sell confidential data, violating Swiss banking secrecy laws.

 

Spanish police sources say they received a Swiss international arrest warrant on 19 March.

 

While Mr Falciani usually lives in France, which rarely extradites its own citizens, he was on his way to address a conference on whistleblowing in Madrid when he was detained.

 

Read more on offshore wealth and tax evasion:

 

*         How much wealth is hidden offshore?

*         German court sentences Swiss tax spy

*         Five EU nations launch tax crackdown

Last November, HSBC agreed to pay €300m ($368m; £262m) to French authorities to settle a long-running investigation into tax evasion by French clients via Switzerland.

 

A team at the International Consortium of Investigative Journalists (ICIJ), led by France's Le Monde daily, published Mr Falciani's "Swiss Leaks" data, revealing accounts held by more than 100,000 wealthy individuals and legal entities.

 

The ICIJ said the accounts - belonging to HSBC clients from 203 countries - contained more than $100bn in total.

 

HSBC says it has tightened up its compliance mechanisms since the violations came to light.--BBC

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


Zimbabwe

Independence Day

Zimbabwe

18/04/2018

 


 

Workers’ Day

 

01/05/2018

 


 

Africa Day

 

25/05/2018

 


Zimbabwe

Heroes’ Day

Zimbabwe

13/08/2018

 


Zimbabwe

Defence Forces Day

Zimbabwe

14/08/2018

 


 

 

 

 

 


 

 

 

 


 

 

 

 


 <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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