Major International Business Headlines Brief::: 19 April 2018

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Major International Business Headlines Brief::: 19 April 2018

 


 

 


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*  Zimbabwe's Mnangagwa says new investment law to open economy

*  South Africa's Pick n Pay FY profit up 7.1 pct on costs cuts

*  South Africa's Pioneer Foods flags higher H1 profit

*  South African rand extends gains after strong data

*  Acacia Mining posts lower Q1 earnings, maintains FY targets

*  Tanzania names chairman for new mining commission

*  Health and beauty products lift Clicks Group's H1 profit

*  Big sub-Saharan African economies to get potent lift in 2018

*  South Africa's CPI falls to 7-year low as rains ease food prices

*  Egypt ports to remain open 24 hours to cut down on wait times -minister

*  South African rand strengthens, commodity gains lift stocks

*  China imposes anti-dumping deposits on US sorghum

*  Casino operator Wynn Resorts adds three women to board

*  Why shops need to connect with their customers

*  Commonwealth Bank charged fees to dead clients, inquiry hears

*  IMF issues warning on global debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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Zimbabwe's Mnangagwa says new investment law to open economy

HARARE (Reuters) - Zimbabwe is working on a new investment law to open up
the economy to foreign investors, President Emmerson Mnangagwa said on
Wednesday, part of his government’s drive to revive an economy that
stagnated under Robert Mugabe last years in power.

 

While giving the main speech during Zimbabwe’s independence celebrations,
the first without Mugabe since 1980, Mnangagwa acknowledged the country had
made mistakes and missed on investment opportunities in the recent past.

 

Mnangagwa, 75, became president in November with support from the military,
which turned against the 94-year-old Mugabe and forced him to resign
following a de facto military coup.

 

Zimbabweans are set to vote in the first post-Mugabe polls in July, where
Mnangagwa will face 40-year-old Nelson Chamisa, the main opposition Movement
for Democratic Change’s new leader.

 

He is trying to roll back some of Mugabe’s policies that investors said
discouraged investment. His Zimbabwe “is open for business” policy is meant
to attract foreign capital after years of isolation under Mugabe.

 

Mnangagwa said the government was preparing a new bill that would simplify
investing procedures, cut bureaucracy and create a “one-stop shop” for
investor registration requirements. Currently, investors take up to 90 days
to set up a business while dealing with several government departments.

 

“The Investment and Business Facilitation Bill, which seeks to give legal
underpinning to Zimbabwe’s commitment to opening up the economy is
undergoing due legal process,” Mnangagwa said.

 

The southern African nation, which adopted the U.S. dollar in 2009 after its
currency was wrecked by hyperinflation, is gripped by shortages of cash,
unemployment of more than 80 percent and crumbling public infrastructure
like roads and rail.

 

Mnangagwa said while he recognized the hardships caused by shortages, these
would not be resolved overnight. He said cash imports would be increased
while the government would seek financing from regional and international
institutions.

 

He did not give details.

 

Mnangagwa did not comment on his government’s decision to fire thousands of
striking nurses as the new administration sought to keep a lid on labour
unrest. 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

South Africa's Pick n Pay FY profit up 7.1 pct on costs cuts

JOHANNESBURG (Reuters) - South African retailer Pick n Pay Stores posted a
7.1 percent rise in full-year earnings on Thursday, as the grocer cut costs
and increased productivity in store operations.

 

Pick n Pay said headline earnings per share (EPS), the most widely used
profit measure in South Africa that excludes some one-off items, rose to
276.98 cents in the year to the end of February, from 258.65 cents a year
earlier.

 

Pick n Pay said turnover growth increased 5.3 percent to 81.6 billion rand
($6.85 billion) from 77.5 billion rand, while trading profit was up 4.9
percent due to a voluntary severance programme (VSP).

 

Pick n Pay shed staff last year with a voluntary severance programme,
reducing its labour force by around 10 percent. That has improved the
efficiency and productivity of staff by removing roles and functions that
were no longer required, it said.

 

“In the first six months, we acted boldly and decisively to reduce our costs
and increase our productivity through the VSP and other programmes,” Group
Chief Executive Officer Richard Brasher said in a statement.

 

“By doing so we built a leaner, fitter and stronger Pick n Pay, and gave
ourselves the headroom to reduce our prices from the second half of the
year.”

 

South African shoppers are feeling the impact of low growth in disposable
income, little to no job creation and tight credit conditions.

 

To keep attracting struggling consumers, Pick n Pay invested 500 million
rand in price cuts across 1,300 everyday grocery items and extended this to
2,000 items in the second half.

 

The group opened 59 franchise stores during the year, including 7
supermarkets, 35 liquor stores, 9 express stores and 8 spaza shops — a local
convenience store. It also opened 29 clothing stores.

 

Pick n Pay, which also owns discount grocery chain Boxer, declared a final
dividend of 155.40 cents per share, bringing the total annual dividend for
the year to 188.80 cents, up 7.1 percent.

 

The group expects the stuff cut programme, both on sales and profit to
deliver further momentum in the 2019 financial year.

 

($1 = 11.9172 rand)

 

 

South Africa's Pioneer Foods flags higher H1 profit

JOHANNESBURG (Reuters) - South Africa’s Pioneer Foods Group said on Thursday
it expects half-year operating profit and headline earnings to increase by
up to 44 percent and 32 percent respectively.

 

Pioneer, which sells food, beverages and related products, said it expects
operating profit for the six months ended March 31 of between 922 million
rand ($77.37 million) and 991 million rand versus 688 million a year
earlier.

 

Adjusted headline earnings per share is expected to increase to between
309.1 cents and 334.5 cents from 253.4 cents.

 

The group, with brands that include Bokomo Weet-Bix cereal and Liqui Fruit
long-life juice, said sales volumes in the period were 4.3 percent higher
while group turnover fell by 2.8 percent to 9.9 billion rand, largely due to
sales price deflation in soft commodities.

 

($1 = 11.9166 rand)

 

 

 

South African rand extends gains after strong data

JOHANNESBURG (Reuters) - South Africa’s rand inched higher early on
Thursday, building on gains in the previous session that were driven by
better-than-expected inflation and retail data.

 

At 0550 GMT, the rand traded at 11.9275 versus the dollar, around 0.1
percent stronger than its New York close on Wednesday.

 

The rand hit its strongest in almost two weeks on Wednesday, as investors
cheered inflation sliding to its lowest in seven years in March and a 4.9
percent rise in retail sales in February.

 

The South African currency rose strongly when Cyril Ramaphosa won the race
to lead the ruling African National Congress in December. But it has traded
in a tight range since late January.

 

Ramaphosa, who replaced scandal-plagued Jacob Zuma as head of state in
February, said on Wednesday that the rand was “near the balance but not
quite there”.

 

Government bonds were flat in early deals on Thursday, with the yield on the
benchmark instrument due in 2026 at 8.025 percent.

 

The yield on that bond traded at its lowest in around two weeks on
Wednesday.

 

 

 

Acacia Mining posts lower Q1 earnings, maintains FY targets

LONDON (Reuters) - Acacia Mining on Thursday posted a fall in first quarter
earnings after reducing operations at its flagship gold mine but stuck to
its full-year production and costs targets.

 

Adjusted earnings before interest, taxes, depreciation and amortisation
(EBITDA) for the three months to March 31 fell to $44 million from $82
million a year earlier.

 

Acacia, a unit of Canada’s Barrick Gold and Tanzania’s largest gold miner,
is caught up in a tax dispute with the government that forced it to reduce
operations at its flagship mine last year.

 

Gold production fell to 120,981 ounces, down 45 percent from the same
quarter a year earlier, mainly due lower output at Bulyanhulu.

 

 

Tanzania names chairman for new mining commission

DAR ES SALAAM (Reuters) - Tanzanian President John Magufuli on Wednesday
appointed a chairman and commissioners for the country’s new mining
commission, paving the way for the issuance of new mining licences.

 

Africa’s fourth-largest gold producer is seeking a bigger slice of the pie
from its vast mineral resources by overhauling the fiscal and regulatory
regime of its mining sector.

 

Magufuli sent shock-waves through the mining community with a series of
actions since his election in late 2015, which he says are aimed at
distributing revenue to the Tanzanian people.

 

In July last year, he suspended the issuance of all new mining licences
until the new mining commission was in place.

 

The president on Wednesday appointed Idris Kikula, a former vice chancellor
of a state university as chairman of the new mining commission and also
named eight commissioners to serve under him.

 

A statement from the Tanzanian presidency said these appointments would take
effect immediately.

 

The appointment of the mining commission and new regulations published in
January mean the country can now resume issuing new mining licences to
investors.

 

Under legislation passed in July last year, the mining commission has been
given extensive powers to regulate and monitor the mining industry and
mining operations in Tanzania.

 

The legislation which created the commission says one of its key objectives
is “to advise the government on all matters relating to the administration
of the mineral sector with the main focus on monitoring and auditing of
mining operations to maximise government revenue.”

 

The commission is also charged with curbing smuggling of minerals and tax
evasion by mining companies and has powers to suspend and revoke mining
exploration and exploitation licences and permits.

 

It will also monitor and audit both the quality and quantity of minerals
produced and exported by large, medium and small-scale miners to determine
their tax liabilities.

 

    The commission will be required to audit capital investment and
operating expenditures of large mines, sort and assess values of minerals
produced for tax purposes.

 

It will also produce indicative prices of minerals with reference to local
and international markets for the purpose of assessment and valuation of
minerals and assessment of royalties.

 

   Passage of the legislation for the commission followed months of
wrangling between the government and the country’s biggest gold miner,
London-listed Acacia Mining Plc, over mineral exports.

 

Tanzania accused Acacia of massive tax evasion in 2016. Acacia, which denies
all allegations, said it was seeking an adjudicator to resolve its dispute
with the Tanzanian government.

 

    The government launched talks with Barrick Gold Corp, Acacia’s majority
owner, last year to try to resolve the dispute.

 

 

 

Health and beauty products lift Clicks Group's H1 profit

JOHANNESBURG (Reuters) - South African retailer Clicks Group posted a 14.8
percent rise in half-year earnings on Thursday as health and beauty products
appealed to thrifty consumers in a weak economy.

 

Diluted headline earnings per share for the six months ended Feb. 28 rose to
266.3 cents from 232 cents, Clicks said.

 

Group turnover rose 10 percent to 14.4 billion rand ($1.21 billion) while
retail sales grew by 13.2 percent.

 

Chief Executive David Kneale said health and beauty sales rose by 14.3
percent which contributed to Clicks gaining market share in all product
categories.

 

“The growth (in health and beauty sales) was driven mainly by buoyant
Christmas trading, appealing promotional offers and competitive pricing,” he
said in a statement.

 

Shareholders will receive an interim dividend of 102.5 cents per share, up
16.5 percent.

 

($1 = 11.9225 rand)

 

 

Big sub-Saharan African economies to get potent lift in 2018

JOHANNESBURG (Reuters) - Sub-Saharan Africa’s biggest economies will benefit
from a global upswing this year - as long as the U.S.-China tariff dispute
does not disturb improving global trade flows, a Reuters poll found on
Wednesday.

 

The poll taken in the past week showed economic growth forecasts for South
Africa, the continent’s most industrialised nation, have got an unusually
strong nudge up.

 

In January, economists projected growth this year at 1.3 percent but
expectations have improved each month. The rate is now put at 1.9 percent,
buoyed by an improving services industry and supported by renewed political
stability since Cyril Ramaphosa replaced the scandal-plagued Jacob Zuma as
South African president.

 

In Nigeria, Africa’s biggest economy, forecasts were lifted to 2.6 percent
for this year, compared with 2.4 percent at the beginning of 2018.

 

“Sub-Saharan Africa’s economic growth remains on track for a solid recovery
this year,” Absa Capital wrote in a note.

 

Absa Capital said the strengthening global economy, higher commodity prices
and improving weather conditions supported growth, with the primary sector
standing out as the main growth driver in many economies.

 

Still, John Ashbourne of Capital Economics said African economies are
struggling to move workers out of low-productivity sectors, primarily
agriculture, and into more productive industries. “If this cannot be done,
then the region’s surging population will be more of a burden than a boon,”
Ashbourne said.

 

Kenya’s economy, largely focused on agriculture, is still expected to grow
5.5 percent this year, the same as in January.

 

Ghana, will probably be one of Africa’s fastest growing economies at 7.8
percent this year, the poll predicted. This is up from 7.0 percent in
January.

 

But a back-and-forth dispute between the United States and China, the
world’s two biggest economies, on trade has triggered market jitters over
what is an otherwise brighter economic and political outlook for Africa.

 

The poll found 17 of 23 economists thought the impact of the trade dispute
would be damaging for major African economies this year.

 

All but one of 20 economists said Nigeria’s decision not to sign the African
Continental Free Trade agreement (AfCFTA) was a blow to the region’s trade
future but most thought Abuja would sign up in a few years.

 

Other African leaders agreed to form a trading zone encompassing 1.2 billion
people, but Nigeria was among 11 countries not signing up. South Africa
indicated it supported the agreement but has some technicalities to fulfil
first.

 

Interest rates in the continent’s major economies had been poised to ease
this year and South Africa cut its repo rate by 25 basis points in March.
However, the rate is now expected to stay at 6.50 percent until next year.

 

A poll last month indicated Nigeria will follow Ghana’s lead and cut rates
in the third quarter. Kenya surprised markets by lowering rates last month
by 50 basis points to 9.50 percent, its first cut since September 2016.

 

 

South Africa's CPI falls to 7-year low as rains ease food prices

JOHANNESBURG (Reuters) - South African consumer price inflation slowed to
its lowest rate in seven years on Wednesday as the end of the worst drought
in decades helped push down food prices, data showed on Wednesday.

 

The rand briefly rallied to a session high after the inflation data before
easing back above the 12 per dollar mark, with investors doubtful the
unexpectedly low reading would be enough to persuade the South African
Reserve Bank to cut interest rates more.

 

The rand later rallied again to 11.9650 per dollar after data showed
February retail sales climbed as price growth slowed.

 

Headline annual consumer inflation slowed to 3.8 percent in March from 4.0
percent in February, the lowest figure since January 2011, Statistics South
Africa said. Month-on-month inflation slowed to 0.4 percent from 0.8
percent.

 

“While the inflation numbers suggest there is a good argument for
accommodative monetary policy, leaving rates unchanged to us would be
relatively accommodative,” said Nedbank senior economist Nicky Weimar.

 

Economists polled by Reuters had expected prices to quicken to 4.1 percent
on an annual basis and 0.6 percent on a monthly basis.

 

Bonds firmed up, with the yield on the benchmark 2026 paper dropping 2.5
basis points to 8.045 percent.

 

“Needless to say, this is good news for South African bonds,” said chief
Africa economist at Standard Charted Razia Khan, adding that she expected
inflation to stay well within the central bank’s 3-6 percent target band in
the medium term.

 

“It does not however change our view that we are unlikely to see further
SARB easing in this cycle,” Khan said.

 

The central bank cut its main interest rate to 6.5 percent in March but
warned that inflation was at a low point in the current cycle and that it
expected consumer prices to rise above 5 percent in the medium term.

 

A 1 percent increase in value-added tax came into effect on April 1 and will
put upward pressure on prices, analysts said.

 

Retail sales rose 4.9 percent year-on-year in February after increasing 3.3
percent in January, with analysts saying lower inflation and the looming VAT
increase had encouraged spending.

 

“It seems consumers were front-loading purchases ahead of the VAT hike, so
we expect a similar bump in the March figures,” said Jana van Deventer of
ETM Analytics.

 

Forward rate agreements due in three and six months were both pricing in a
less than zero percent chance of a 25 basis-point cut in interest rates.

 

ESKOM TARIFF LOOMS

Nedbank’s Weimar said that along with VAT the biggest risk to inflation was
the possibility of a large electricity tariff increase by power provider
Eskom, which is seeking to recover 67 billion rand ($6 billion) in higher
than forecast operating costs through higher tariffs.

 

“What happens to Eskom’s electricity tariffs will be very important. It will
be applying for fairly steep increases and that could certainly see
inflation trend much higher,” Weimar said.

 

Food price inflation, a major concern for the Reserve Bank in the last two
years due to drought, slowed to 3.5 percent year-on-year having hit 11.8
percent in December 2016.

 

“We could see the decline in food price inflation start to moderate in the
next few months, as base effects from the drought start to dissipate,” said
Investec chief economist Annabel Bishop in a note.

 

($1 = 11.9855 rand)

 

 

Egypt ports to remain open 24 hours to cut down on wait times -minister

CAIRO (Reuters) - Egypt will keep its ports running for 24 hours a day, up
from 16 currently, in an effort to cut down on “long waiting times” for
shipments, Transportation Minister Hesham Arafat said on Wednesday.

 

The extended port hours will not come at any added cost for shippers, he
said. Arafat did not specify when the new port hours would come in to effect
or how long the new policy would remain in place.

 

Traders have complained of growing demurrage fees in recent months caused by
long delays for their vessels at Egyptian ports that have raised the cost of
doing business.

 

 

South African rand strengthens, commodity gains lift stocks

JOHANNESBURG (Reuters) - South Africa’s rand strengthened and bonds rallied
on Wednesday after better than expected inflation and retail data
reactivated investor optimism that has bolstered the currency this year.

 

Stocks ended higher, led by heavily weighted mining shares as commodity
prices forged ahead.

 

At 1500 GMT the rand was 0.42 percent firmer at 11.9350 against the U.S.
dollar, a touch softer than the session-best 11.9275 but its strongest in a
week, as investors cheered the March inflation figure sliding to its lowest
in seven years on falling food prices.

 

The rand has strengthened by about 20 percent against the dollar since
November, when Cyril Ramaphosa won the race to lead the ruling African
National Congress en route to his election as South Africa’s president in
February.

 

The yield on the benchmark government bond due in 2026 fell 5.5 basis points
to 8.025 percent, its lowest since April 5.

 

Lower inflation boosts demand for bonds because investors believe their
investment will be worth more in the future.

 

Headline annual consumer inflation slowed to 3.8 percent in March from 4
percent in February, the lowest level since January 2011, Statistics South
Africa said. Month-on-month inflation slowed to 0.4 percent from 0.8
percent.

 

 

Retail sales rose 4.9 percent year on year in February.

 

Ramaphosa said on Wednesday that the rand is almost back at its natural
level.

 

Analysts said that while the lower CPI was good for the economy overall, the
central bank is now less likely to raise interest rates.

 

The JSE All-share index, the broadest measure of stock market performance,
was up 1.56 percent at 57,713 and the benchmark Top-40 index rose 1.69
percent to 51,025.

 

Mining giants Anglo American and BHP Billiton were among the top gainers,
rising 5.2 percent and 3.8 percent, respectively.

 

Metals such as nickel and aluminium were din emand on the London Metal
Exchange on a combination of technical factors and supply concerns because
of U.S. sanction against Russia. [MET/L]

 

On the downside, Rebosis slumped 8 percent after the property fund said its
chief executive had quit and pushed back its half-year results.

 

 

China imposes anti-dumping deposits on US sorghum

China has announced a hefty anti-dumping move against US sorghum imports, as
a multi-billion dollar tit-for-tat trade spat between the two nations
continues.

 

China said US importers would have to pay a temporary 178.6% deposit on the
value of their imports from Wednesday.

 

China initiated its investigation into US sorghum imports in February.

 

US growers were "deeply disappointed" with the findings and are considering
legal action in response.

 

Sorghum is a grain used primarily to feed livestock, but it is also used to
create ethanol, or drinking alcohol.

 

The US is the world's leading producer of sorghum, and is the largest
supplier of sorghum to China. China uses its sorghum imports to feed its
farm animals, and in its spirits industry.

 

Analysts said the temporary anti-dumping deposit imposed by China, which
comes ahead of a possible anti-dumping tariff on the product, was quite high
and that some US shipments in the future could be cancelled as a result.

 

China's announcement follows months of trade tariffs - and threats of
tariffs - imposed by the US and China on each other.

 

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The US claims that China has unfair intellectual property practices, such as
those that have allegedly pressurised US companies into sharing technology
with Chinese firms when doing business in the country.

 

US President Donald Trump is primarily using big trade threats aimed at
China as a way to make it stop what he calls "illicit trade practices".

 

In a move that was expected to appease the US, China said this week it would
allow full foreign ownership of car firms by 2022, changing the rules that
require global carmakers to work through state-owned partners.

 

Beijing meanwhile continues to claim that the US is dumping products at
cheaper-than-market prices into China, which is hurting Chinese farmers and
manufacturers. It also says the US it is unfairly punishing it with tariffs,
and has continued to say it is not afraid of a trade war.

 

Separately, as tensions continue to rage between the two trading giants, the
US said this week it was imposing a seven-year ban on US firms selling parts
to China's big phone maker, ZTE.

 

The United States Trade Representative has said it will review China's move
on US sorghum and will consider taking it to the World Trade Organization.

 

Chinese farmers may suffer in the long run from China's latest move as they
rely on imported sorghum as feedstock for their animals

China's investigation into its sorghum industry, launched in February, has
found that US firms have been selling sorghum into China at below market
prices, which is a practice known as dumping.

 

China has said that the market share of American sorghum jumped from 8% in
2013 to 61% in 2016 and that the price of imported sorghum from the US had
edged down from $289.61 per tonne in 2013 to $214.78 per tonne in 2016.

 

"Due to the flood of cheap imports, Chinese industry has been damaged in
terms of production and financial condition," China's Ministry of Commerce
told reporters in February.

 

But industry groups in the US said American sorghum was not being dumped in
China, and that their sorghum producers and exporters had not caused any
injury to China's sorghum industry.

 

"[This] decision in China reflects a broader trade fight in which US sorghum
farmers are the victim, not the cause," the US industry group National
Sorghum Producers said.

 

"And US sorghum farmers should not be paying the price for this larger
fight."

 

Few winners in a trade war

Some analysts have said China's latest move was in response to controversial
tariffs on imported washing machines and solar panels.

 

Others have said the timing of the investigation was a coincidence and that
the new deposit tax was not officially related to any specific measure, but
simply about sorghum being dumped into the Chinese market.

 

"China does seem to have sufficient cause to launch an investigation given
[its figures on sorghum imports from the US]," Deborah Elms from the Asian
Trade Centre told the BBC.

 

But she also warned that both sides could be hurt by China's latest move.

 

"US farmers will be hurt in the short term, as my understanding is that
these crops are largely planted for export to China," Ms Elms said.

 

"In the longer run, Chinese farmers may suffer as they rely on these
imported products as feedstock for their animals. They can shift to other
sources, but this will take time and presumably cost more," she continued.

 

"In a trade war, there are often few winners. The winners, in this case, are
likely to be producers of alternative feedstock in other countries like
Canada or Vietnam."--BBC

 

 

 

Casino operator Wynn Resorts adds three women to board

Casino operator Wynn Resorts has added three women to its board, amid
allegations of sexual misconduct by its former chief executive Steve Wynn.

 

The company said the appointments were a "first step" in efforts to refresh
and diversify its board.

 

Shareholders are currently suing Wynn's board over claims it knew of the
allegations against Mr Wynn for years and failed to investigate.

 

Mr Wynn has denied any wrongdoing and called the allegations "preposterous".

 

Wynn Resorts said Betsy Atkins, Dee Dee Myers and Wendy Webb had been
appointed as independent directors, effective immediately, bringing its
board numbers to 11.

 

"The Wynn Resorts board now comprises 36% women, bringing Wynn into the top
40 S&P 500 companies in terms of female board representation," the company
said in a statement.

 

Wynn Resorts board hit with lawsuit

Casino mogul quits amid harassment claims

Top US Republican quits over sex claims

Ms Myers was the first woman to serve as the White House press secretary, a
position she held during President Clinton's first term and is now an
executive at Warner Bros.

 

Ms Webb's background includes some 20 years as a senior executive at The
Walt Disney Company, while Betsy Atkins is an expert in corporate
governance.

 

"To be clear, this is the first step in our effort to refresh the board,"
said chairman D Boone Wayson. "We intend to add additional new directors in
the coming months."

 

Mr Wynn resigned as head of the firm he co-founded in February after a Wall
Street Journal report alleged that the 76-year-old billionaire harassed
massage therapists and forced one staff member to have sex with him.

 

Since his resignation, all his stock in the firm has been sold and he has
been removed from all company operations.

 

He is one of the biggest names in the business world to quit over
allegations of sexual misconduct.

 

Wynn's board has launched an internal investigation into any awareness of
the allegations and its response to the allegations regarding its former
head.

 

Wynn Resorts owns and operates several casino complexes including Wynn
Macau, Wynn and Encore Las Vegas, and Wynn Palace Cotai.--BBC

 

 

Why shops need to connect with their customers

The entrepreneur who brought the Danish retailer Tiger to the UK hopes to
repeat that success with a French children's chain.

 

Philip Bier is opening a branch of France's ID Kids, which sells toys and
clothes, in Wandsworth, south London.

 

He says stores need to connect with customers and that ID Kids stores would
be about "experiences".

 

The launch comes despite the collapse of Toys R Us and difficulties faced by
other retailers including Mothercare.

 

Mr Bier opened the first UK branch of homeware and gadget retailer Tiger
with his wife Emma in Basingstoke in 2005 and the chain now has 90 stores.

 

They had a half-share in the venture with its Danish parent company, Zebra
Group.

 

Five things to do with empty retail space

 

Six reasons behind the High Street crisis

 

Last year Mr Bier sold his stake in Tiger, now known as Flying Tiger
Copenhagen, to Zebra and has bought the UK franchise for ID Kids, which has
1,200 stores worldwide.

 

He said the store will feature a soft-play area, scooters and go-karts for
children to use and a workshop area with free art classes.

 

Despite the problems facing the retail sector following the demise of Toys R
Us and the problems facing Mothercare, Mr Bier argues that the sector is
evolving.

 

"I think that there's plenty of space for retailers who provide products
that are a fantastic value for money, but where the experience in the store
is really fun and you want to go to it," he told the BBC.

 

The retailers that have disappeared from the high street had all ceased to
be "relevant".

 

Rising competition from online shopping meant that retailers need to create
an "emotional connection" with their customers, Mr Bier said.

 

That meant it was no longer "enough to open the doors and expect customers
to come in. It might have been like that in the 1980s and 1990s, but it's
not enough nowadays".

 

Single brand stores

"At retail conferences, nobody talks about customers," he said. "Nobody
talks about, are we relevant? The core of the business is who do you talk
to."

 

Retailers also needed to adapt to changing consumer demands, Mr Bier added
as he forecast a shift away from department stores: "I think that retail
will go more and more towards single brand shops."

 

Mr Bier said that Tiger once received customer feedback from a child, who
said if he had £1 in his pocket he would spend it there.

 

But even when the boy did not have any money to spend, he would still go
into the store all the time just to look at the products and experience
them, because the shop was such a fun place to be.

 

"Retailers need to understand that you have incredible competition from the
web and overall you need to deliver an experience that is engaging, and if
you don't have that then you are dead."--BBC

 

 

 

Commonwealth Bank charged fees to dead clients, inquiry hears

Australia's largest lender collected fees from customers it knew had died, a
major inquiry has heard.

 

Commonwealth Bank of Australia (CBA) told a public hearing that some of its
financial planners had billed services to deceased clients.

 

In one case, an adviser collected fees from a former client for more than a
decade.

 

Australia is holding a royal commission - its top form of public inquiry -
into the nation's financial institutions.

 

Prime Minister Malcolm Turnbull ordered the inquiry last year following a
series of scandals involving financial misconduct.

 

Why is Australia investigating its banks?

Fees charged for years

CBA told a hearing on Wednesday that it had regularly collected fees from
customers for services that were not delivered.

 

On Thursday, bank executive Marianne Perkovic said that practice extended to
dead customers.

 

One adviser knew a client had died in 2004 but continued to collect monthly
fees until 2015, the inquiry heard.

 

The commission was told that financial advisers involved in misconduct had
been penalised with warnings by the bank.

 

CBA has previously faced scrutiny for alleged breaches of anti-money
laundering laws, and for providing inappropriate financial advice.

 

Commonwealth Bank 'to compensate customers'

Bank admits failures in laundering case

Australia's Treasurer Scott Morrison has warned that financial executives
could face strong penalties, including jail sentences, from evidence brought
up at the inquiry.--BBC

 

 

IMF issues warning on global debt

The International Monetary Fund says that high global debt is a concern.

 

In a new report, the IMF says governments should use the current strong
economic growth to strengthen their finances.

 

The organisation also says that risks to global financial stability have
increased.

 

It does, however, also say that the banking sector has become more resilient
since the global financial crisis.

 

The IMF's assessment of the general economic outlook, published on Tuesday,
was fairly upbeat for the near term.

 

But it did note there are risks, some of which are set out more fully in two
reports just out, one on the stability of the financial system and the other
focusing specifically on government finances around the world.

 

Future downturn

On governments, the IMF says "decisive action is needed now". It argues that
by improving their finances when economic performance is strong, governments
will have more scope to use tax cuts or increases in public spending to
combat a future downturn.

 

Acting now also means they are less likely to have difficulty borrowing the
money they need when the economy weakens.

 

IMF: Global economic outlook is bright

 

IMF downgrades UK growth forecast on Brexit uncertainty

 

There is criticism, in carefully chosen language, of the US, where President
Donald Trump's administration is embarking on tax cuts at a time when the
IMF judges the economy is close to full employment.

 

Policy there, the IMF says, "should be recalibrated to ensure that the
government debt-to-GDP ratio declines over the medium term". That strongly
implies a view that US should be moving in almost exactly the opposite
direction to what it currently plans.

 

There is also a warning about risks of global financial instability. That is
partly, though not only, about rising government debts.

 

Rising inflation and central banks' responses with higher interest rates
could aggravate debt problems and could also hit the prices of financial
assets.

 

Chinese banks

There's a particular warning about China. The large scale and opaque nature
of the financial system pose a risk to stability, the IMF says.

 

That said, the report also notes that Chinese banks have reduced their use
of risky short-term borrowing, in response to tighter regulation.

 

The report also judges that the global banking system is stronger now than
it was at the time of the crisis. But it adds that reforms need to continue.

 

One encouraging point is the IMF's views that crypto-assets - the likes of
Bitcoin - do not currently appear to pose any risk to financial stability.
But they could do if they become more widely used.

 

It says the technology behind these assets has the potential to make
financial markets work more efficiently.--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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