Major International Business Headlines Brief::: 20 April 2018

Fri Apr 20 10:43:15 CAT 2018

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Major International Business Headlines Brief::: 20 April 2018

 <http://www.mbca.co.zw/> 

*  Independent board advises Murray & Roberts shareholders to reject ATON
bid

*  South African rand heading for 1 pct gain vs dollar this week

*  S.African government questions Transnet CFO's resignation

*  Kenya's fresh produce export earnings jump 11 pct in 2017

*  South Africa's public servants union in wage dispute with govt: official

*  Shareholder group VEB plans lawsuit against three banks over Steinhoff -
FT

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

*  Kenya sugar output to rise 19 pct in 2018 on good rainfall

*  Steinhoff Africa Retail expects unit to issue shares to help repay loans

*  DeBeers rolls out app to clean up Sierra Leone diamond supply chain

*  Australia bank inquiry ousts first executive amid fee scandal

*  Barclays boss Jes Staley faces penalty for 'conduct breach'

*  Premier League club revenues soar to £4.5bn

*  Brexit divorce cost uncertain, say auditors

*  Carney: Brexit uncertainty could delay interest rate rise

 <mailto:info at bulls.co.zw> 

Independent board advises Murray & Roberts shareholders to reject ATON bid

JOHANNESBURG (Reuters) - South Africa construction company Murray & Roberts
(M&R) said on Friday that an independent board had recommended that its
shareholders reject a takeover bid by Germany’s ATON, the latest rebuff to
the acquisition attempt.

M&R reported interim profits that more than doubled, in part due to higher
earnings from its underground mining activities, a sign of an upswing in the
commodities sector which has made it an attractive target.

“It was clear to the Independent Board upfront that ATON’s approach was
opportunistic and timed to coincide with unprecedented weakness in the
company’s share price,” M&R said in a statement.

“The Independent Board, having taken the advice of (an) independent expert,
communicated to shareholders its view that the ATON offer materially
undervalued the strategic platforms and business prospects of Murray &
Roberts,” it said.

M&R’s biggest shareholder German investor Lutz Helmig’s ATON, which owns
more than a third of the South African group, made a buyout offer of 15 rand
($1.25) per share for M&R last month valuing the company at close to $600
million.

M&R rejected the bid saying it undervalued the company and its second
biggest shareholder, South Africa’s Public Investment Corporation, has also
snubbed the overture. An independent report has shown that a fair offer for
the company would be as much as 22 rand per share.

The company’s share price closed at 15.20 rand on Thursday, almost double
its 2018 low of 8.70 rand hit on March 22. When the planned buyout was
announced on March 26, Murray & Roberts’ share price was close to a two-year
low, according to Thomson Reuters’ data.

($1 = 11.9847 rand)

 <mailto:info at bulls.co.zw> 

South African rand heading for 1 pct gain vs dollar this week

JOHANNESBURG (Reuters) - South Africa’s rand was slightly weaker early on
Friday but was on course for a 1 percent gain versus the dollar this week.

At 0609 GMT, the rand traded at 11.9725 versus the dollar, down 0.1 percent
from its close on Thursday. The dollar index was slightly higher.

The rand is up around 0.9 percent against the U.S. currency since last
Friday’s close.

Appetite for the rand has been boosted this week by strong economic data
which suggests the economy is recovering.

March inflation hit a seven-year low, and retail sales rose more than
expected in February. The International Monetary Fund also raised its 2018
growth forecast for South Africa to 1.5 percent.

Government bonds were flat in early deals, with the yield on the benchmark
instrument due in 2026 at 8.015 percent. Earlier in the week the yield on
that bond fell to a two-week low.

“Positive South African inflation figures continue to support South African
bond prices and the currency,” NKC Research analysts said in a note.

S.African government questions Transnet CFO's resignation

JOHANNESBURG (Reuters) - South Africa’s logistics utility Transnet said on
Thursday its chief financial officer Garry Pita had resigned due to
ill-health after two years in the job, and would replaced by Mark-Gregg
McDonald on an interim basis.

The Department of Public Enterprises, which oversees state firms, said
Pita’s resignation did not absolve him from responsibility for
irregularities at the company, adding that “allegations of deep corruption
and malfeasance” had to be dealt with.

The state firm is among utilities alleged to have granted contracts
illegally and is currently investigating allegations of corruption in the
procurement of 1,064 diesel and electric locomotives worth around 54 billion
rand ($4.5 billion).

“The current board is yet to provide credible explanations of how such
transactions were approved or indeed condoned over successive financial
years,” Makgola Makololo, director general of the department, said in a
statement.

“Therefore, the resignation of Mr Pita does not absolve him of
accountability should he be found to have had a role in any way or form.”

President Cyril Ramaphosa this month ordered the country’s Special
Investigating Unit to probe allegations of maladministration at Transnet and
power utility Eskom.

A 2016 report by a government corruption watchdog accused the Gupta family,
friends of former president Jacob Zuma, of using their influence to gain
control of state companies and contracts. The Guptas and Zuma have denied
wrongdoing and say they are victims of a politically-motivated witch hunt.

On Monday police raided the compound of the Gupta family over a separate
corruption case. One of the brothers has been declared a “fugitive from
justice” after the family left South Africa for Dubai in February.

($1 = 11.9656 rand)

Kenya's fresh produce export earnings jump 11 pct in 2017

NAIROBI (Reuters) - Kenya earned 115.25 billion shillings ($1.15 billion)
from exports of cut flowers, fresh fruit and vegetables last year, 11
percent more than in the previous year, an industry association said on
Thursday.

Fresh produce exports are a key source of hard currency for the East African
economy, along with tourism, cash sent home by Kenyans abroad and coffee and
tea exports.

Okesegere Ojepat, the chief executive of the Fresh Produce Consortium of
Kenya (FPC Kenya), said cut flowers accounted for 70 percent of the earnings
with the rest coming from fresh fruit and vegetables.

He said the sector had shown resilience in the face of a drought, a
drawn-out presidential election and sluggish private sector credit which
curbed Kenya’s economic expansion last year.

The fresh produce industry faced several challenges including high costs of
production and insufficient cooling facilities, Ojepat said.

Farming is the biggest sector in Kenya’s economy, accounting for about 30
percent of annual output and employing more than half of the population
especially in the rural areas.

($1 = 100.1500 Kenyan shillings)

South Africa's public servants union in wage dispute with govt: official

CAPE TOWN (Reuters) - South Africa’s Public Servants Association (PSA) has
declared a dispute with government after protracted wage hike talks stalled
on Thursday, a senior PSA official said.

The PSA, which represents more than 230,000 public sector workers, wants an
above inflation increase of 12 percent across the board as Africa’s most
industrialised economy shows signs of recovering from a recession.

It was not immediately clear what the government was offering the civil
servants.

Shareholder group VEB plans lawsuit against three banks over Steinhoff - FT

(Reuters) - A Dutch shareholder group has given notice that it plans to file
a class action lawsuit against Barclays Plc, Commerzbank AG and Absa Bank
Ltd over their roles in a 2015 share sale by South African retailer
Steinhoff International, the Financial Times reported on Wednesday.

As required by Dutch law, shareholder group VEB gave the three banks two
weeks’ notice of its plan to file the lawsuit and invited them to open talks
on “an amicable settlement”, the report said.

VEB maintained the banks are “liable for damages incurred by Steinhoff
shareholders” because of their roles in the listing of Steinhoff on the
Frankfurt and Johannesburg stock exchanges as part of its creation of a
holding company in Amsterdam, the FT said.

Steinhoff declined to comment. VEB, Barclays, Commerzbank, and Absa were not
immediately available for comment outside regular business hours.

Steinhoff, which has more than 40 retail brands including France’s Conforama
and British chain Poundland, faced a fight for survival after admitting
accounting irregularities in December, wiping about 85 percent off its
market value and triggering a liquidity crisis.

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)

Kenya sugar output to rise 19 pct in 2018 on good rainfall

NAIROBI (Reuters) - Kenya expects its sugar production to jump by up to 19
percent this year, recovering from a drought-induced drop the previous year,
a senior government official said on Thursday.

The East African nation has an annual sugar consumption of 870,000 tonnes
but production has slumped due to a high cost of production, old and
inefficient sugar crushing machinery as well as mismanagement and theft of
farmers’ funds.

It relies on duty-free imports from the Common Market for Eastern and
Southern Africa (COMESA) trade bloc to cover its annual deficits.

Solomon Odera, the head of the Sugar Directorate which falls under the
agriculture ministry, told Reuters in an interview this year’s output would
jump to 420,000-450,000 tonnes.

Production was 377,126 tonnes of sugar last year, a 41 percent drop from
638,340 tonnes a year earlier, hurt by a severe drought in the first
quarter.

“We have had quite a bit of rain, and many of our particularly private
companies are experiencing rather high efficiencies right now so they are
able to mill all the cane that is available,” Odera said.

The drop in production in 2017 was also attributed to factories crushing
immature cane and a slowdown in activity at Mumias Sugar Company, one of the
biggest producers, he said.

Production at Mumias, which has been beset by management woes in the last
several years, has slumped from its peak of more than 250,000 tonnes a year.

In its last financial year to the end of June 2017, Mumias Sugar’s output
fell to 15,891 tonnes from 75,073 tonnes a year earlier, and the miller
attributed this to cane shortage and a shutdown of its plant for
maintenance.

Two groups of investors had expressed interest in setting up new factories:
one with a capacity to crush 2,500 tonnes of cane per day, and another whose
capacity will eventually go up to 7,000 tonnes per day, but these were in
initial stages, Odera said.

Other existing sugar companies are also planning expansion.

Privately-owned Kwale International Sugar Company Limited said its output
for 2018 would rise to about 50,000 tonnes from 35,000 tonnes last year.

It said it planned to boost the milling capacity of its factory to 5,000
tonnes of cane per day from 3,500 tonnes per day at present in the next two
to three years.

Kwale International is owned by Pabari Investments Limited and Mauritius’s
Omnicane, which has a 20 percent stake. World raw sugar prices are at 2-1/2
year lows due to a glut.

Steinhoff Africa Retail expects unit to issue shares to help repay loans

JOHANNESBURG (Reuters) - Steinhoff Africa Retail (STAR) said on Thursday it
expects one of its subsidiaries to repay part of the loans it owes its
majority shareholder Steinhoff Africa Holdings by issuing preference shares
to South African financial institutions.

“The subscribers have indicated that they are willing to subscribe for
preference shares with an aggregate subscription price of approximately 6
billion rand ($503 million) subject to the fulfilment of certain conditions
precedent,” STAR said in a statement.

At the end of Sept. 30 its shareholder loans amounted to approximately 16
billion rand, it said in December.

($1 = 11.9255 rand)

DeBeers rolls out app to clean up Sierra Leone diamond supply chain

JOHANNESBURG (Reuters) - Global diamond giant De Beers is rolling out an app
to help small-scale, artisanal diamond miners in Sierra Leone certify that
gems they pry from the soil are legal, the Anglo American unit said on
Thursday.

The initiative is the latest attempt by the industry to clean up its image
and expunge the scourge of “blood diamonds” blamed for financing conflict,
chaos and criminality in poor African countries, such as Sierra Leone and
Liberia.

More widely, small-scale mining is often tainted by alleged links to
insurgents or child labour, casting a cloud over supply chains for
commodities such as cobalt, which is produced mainly in the conflict-prone
Democratic Republic of Congo, and gold.

Called Gemfair, the De Beers’ pilot app project is a partnership with
Diamond Development Initiative (DDI), an NGO, and will target several
small-scale mine sites in Sierra Leone in a meeting of high technology and
pre-industrial mining methods.

Miners enrolled in the project must be licensed, adhere to certain
environmental standards, work sites that are free of violence and meet other
requirements.

The app is on a tablet and has a software application that shows the GPS
location where the diamonds have been extracted, allowing for a record of
the production process. The software can work online or offline in remote
areas.

The miners are also provided with digital scales to weigh their diamonds and
a tamper-proof bag where they can be deposited and then passed safely
through the supply chain.

“The app we developed to address some of the key challenges in logging and
validating, to allow artisanal production to be traced from the mine site
all the way through to export,” Feriel Zerouki, DeBeers’ vice-president for
ethical initiatives, told Reuters in an interview.

According to DDI, up to 20 percent of global gem-quality diamond supplies
are produced by artisanal miners, who typically wash gravel by hand in
conditions that are often unhygienic and dangerous.

Illicit diamonds were linked to funding civil wars and insurgencies in
Sierra Leone, Liberia and Angola and the issue was popularised by the 2006
movie “Blood Diamond” starring Leonardo DiCaprio.

The main initiative to keep such gems from reaching the market is a
regulatory programme called the Kimberley Process but its focus is on
conflict diamonds and does not directly address issues of poverty and
exploitation.

Australia bank inquiry ousts first executive amid fee scandal

The head of Australia's largest wealth manager has resigned after the
company admitted lying to regulators for more than a decade.

AMP chief executive Craig Meller quit after an inquiry heard the business
had routinely charged fees to customers for services that were not
delivered.

Australia is holding a royal commission - its top form of public inquiry -
into misconduct in financial institutions.

Mr Meller is the first executive to be ousted amid the inquiry.

Earlier this week the hearing was told that AMP had repeatedly misled the
nation's corporate watchdog, the Australian Securities and Investments
Commission (Asic), over its collection of fees.

AMP has "unreservedly apologised" for the practice.

The royal commission was ordered by Prime Minister Malcolm Turnbull last
year following a series of scandals involving financial misconduct.

Why is Australia investigating its banks?

In announcing his resignation, Mr Meller said he was "personally devastated"
by what had been exposed.

"I do not condone [the misconduct] or the misleading statements made to
Asic," he said.

"However, as they occurred during my tenure as CEO, I believe that stepping
down as CEO is an appropriate measure to begin the work that needs to be
done to restore public and regulatory trust in AMP."

The Commonwealth Bank of Australia has also admitted to charging fees for
undelivered services. On Thursday, the bank said the misconduct had extended
to clients it knew were deceased.

Evidence of misconduct presented in public hearings this week has drawn
condemnation from the nation's politicians and sparked growing public
outrage.--BBC

Barclays boss Jes Staley faces penalty for 'conduct breach'

Barclays boss Jes Staley is facing a fine by UK regulators for breaching
rules when he tried to identify a whistleblower at the bank.

The Financial Conduct Authority (FCA) and the Prudential Regulatory
Authority (PRA) began their probe into Mr Staley's conduct a year ago.

Mr Staley, who has apologised for his conduct, has been given time to
appeal.

Barclays said there was no suggestion Mr Staley acted with "a lack of
integrity".

A statement from Barclays said the FCA and PRA "are not alleging he acted
with a lack of integrity or that he lacks fitness and propriety to continue
to perform his role as group chief executive officer".

It also said the two bodies would not take enforcement action against
Barclays.

Barclays said that its "management continues to have unanimous confidence in
Staley and continues to recommend his re-election as a director at the
Barclays annual general meeting on May 1".

But Mr Staley does face a financial penalty from within the bank itself,
although that will be decided once the FRA and PRA processes are complete.

Barclays shares were up 1% in early trading.

Jes Staley is found to have been driving Barclays without due care and
attention but won't lose his licence.

He will face a fine from regulators and a cut to his pay from the board but
crucially he's been deemed fit and proper to run a bank.

Investors will be relieved - they didn't want to be looking for a fourth
chief executive since Bob Diamond was sent packing by the Bank of England in
2012.

Staley has accepted the criticism and wants to get on with the job of
returning Barclays to the role of last serious European investment bank.

The City watchdog may feel some heat. Many will say that sparing a boss who
tried to track down a whistleblower will discourage those whistleblowers,
who can be such an important tool in policing bad financial behaviour.

The board of Barclays supports Staley - we'll find out what the shareholders
think at Barclays' AGM in two weeks.

Personal issues

The issue dates back to June 2016, when members of the Barclays board
received an anonymous letter raising concerns about a senior employee who
had been recruited by Barclays earlier that year.

The letters, which were being treated as whistleblows, raised concerns of a
personal nature about the senior employee, and Mr Staley's knowledge of and
role in dealing with those issues at a previous employer.

They also raised questions over the appropriateness of the recruitment
process followed on this occasion by Barclays.

Mr Staley asked Barclays' internal investigation team to attempt to identify
the authors of the letters, which the chief executive thought were an unfair
personal attack on the senior employee.--BBC

Premier League club revenues soar to £4.5bn

Premier League clubs reported record revenues of £4.5bn in the 2016-17
season, and also returned to profit.

Clubs collectively reported £500m in pre-tax profit, also a record, having
posted a small collective pre-tax loss in 2015-16, according to Deloitte.

Wage costs rose by 9% to £2.5bn, a significantly lower growth rate than the
25% hike in revenues.

The Premier League's three-year TV deal which came into effect in 2016-17
was the main factor in revenue growth.

A record £5.13bn was paid to the league by Sky and BT for the 2016-19 UK
broadcast rights. But the latest domestic rights auction, for the 2019-22
cycle, did not reach those heights, bringing in £4.464bn for the league's 20
clubs.

"Despite the lack of growth in domestic broadcast deals announced to date,
we still expect to see overall revenue growth in the coming seasons, and if
this is complemented with prudent cost control, we expect that pre-tax
profits will be achieved for the foreseeable future," said Dan Jones, head
of Deloitte's Sports Business Group.

And he said that "restraint shown by clubs to control their wages has
translated broadcast revenue success into healthy operating and pre-tax
profits".

*         Premier League 2016-17 in numbers (2015-16 in brackets)

*         Revenues - £4.5bn (£3.6bn)

*         Wage costs - £2.5bn (£2.3bn)

*         Other operating costs - £1bn (£800m)

*         Pre-tax profit - £500m (£110m loss)

*         Operating profit - £1bn (£500m)

*         Net player trading costs - £400m (£400m)

*         Other costs - £100m (£200m)

*         All 20 clubs made an operating profit

*         18 clubs made a pre-tax profit

Mr Jones added: "Although we anticipate wage costs will continue to rise in
the coming seasons, we do not foresee increases to be at a level which can
jeopardise the profitability of the Premier League as a whole.

"The most significant wage increases have tended to occur in the year prior
to the commencement of a new broadcast cycle once a substantial revenue
increase is secured."

The collective revenue-to-wage ratio at Premier League clubs was down from
63% to 55% in the 2016-17 season, the lowest since the 1997-98 season.

The analysis reveals that Premier League clubs have collectively made a
pre-tax profit in three out of the last four years.--BBC

Brexit divorce cost uncertain, say auditors

The total cost of the Brexit "divorce" bill remains uncertain, auditors say,
as much depends on future events.

The National Audit Office said the £35bn-£39bn range put forward by the
government was "a reasonable estimate".

But even "relatively small changes" to things such as inflation, the
exchange rate and the UK's future economic performance could push it up or
down.

The government said the settlement would be "fair to UK taxpayers" and would
honour commitments made.

The UK is due to leave the European Union at the end of March 2019 - but a
"transitional" period is expected to last until 31 December 2020, during
which most of the current trade arrangements would continue.

*         Why Brussels seems relaxed about the Brexit end game

*         Ministers suffer first Lords Brexit defeat

*         Senior MPs to force customs union vote

*         Brexit: All you need to know

It has agreed to continue to pay into the EU's annual budget until December
2020, and to cover a share of outstanding commitments and liabilities at
that date.

The largest liability - the pension scheme for EU officials - is likely to
mean payments continuing until at least 2064, although about 60% of the
financial settlement is expected to be paid by the end of 2021.

Chancellor Philip Hammond has set out what he calls a "reasonable central
estimate" of the settlement's value as falling between £35bn and £39bn -
although no final figure is mentioned in the joint report agreed by the UK
and EU in December.

But the National Audit Office said it was not possible to define the total
cost "until there is greater certainty around future events".

These include:

*         The exchange rate - the final settlement will be paid in euros and
the Treasury's estimate was based on the exchange rate in place when the
agreement was reached, in December 2017

*         The UK's future economic performance - how much the UK pays into
the EU budget in 2019 and 2020 is calculated on its economic performance
compared with that of other member states. Those contributions also partly
determine how much the UK will pay towards outstanding liabilities and
commitments after 2020

How much the UK will have to pay into the EU pension pot is also based on
assumptions about life-expectancy, salary increases and valuation estimates

"Relatively small changes to some of these assumptions would cause HM
Treasury's central estimate to be outside its £35bn to £39bn range," the
report says.

The NAO adds that some costs are not included in the estimate - such as a
commitment to the European Development Fund, expected to cost £2.9bn,
because it was not established under EU treaties.

However, the estimate does include about £7.2bn of funds to be paid out by
the EU to the UK that will actually go straight to the private sector, not
government accounts.

The report says the "vast majority" of financial commitments will be paid by
2026 and the UK will receive its share of paid-in capital in the European
Investment Bank - worth £3.1bn - in 12 annual instalments from 2019.

Head of the NAO Amyas Morse said the Treasury's estimate "reflects a number
of moving parts, so the range of costs in it could have been wider than
£35bn to £39bn".

But he added: "Overall we think it is a reasonable estimate."

A government spokesman said: "We have always been clear that we will honour
commitments made while being part of the EU, and we have negotiated a
settlement that is fair to UK taxpayers and means we will not pay for any
additional EU spending beyond what we signed up to as a member.

"The NAO has confirmed that our estimated figure is a reasonable
calculation, and we are now discussing our future relationship."

Lib Dem Brexit spokesman Tom Brake said: "Boris Johnson's claim that the EU
can 'go whistle' over a divorce bill looks, even by his standards, to be a
piece of particularly bilious buffoonery.

"The NAO have confirmed the cost of divorce, whilst likely to be in the
government's stated range of £35bn to £39bn, could be higher."--BBC

Carney: Brexit uncertainty could delay interest rate rise

The governor of the Bank of England has said that an interest rate rise is
"likely" this year, but any increases will be gradual.

Mark Carney said major decisions had to be taken on Brexit, including on the
detail of the implementation period and the shape of a final deal.

There would also be a parliamentary vote on the future relationship between
Britain and rest of the EU.

All those events would weigh on how fast interest rates rises would occur.

Following Mr Carney's comments the pound fell by nearly a cent against the
dollar, as markets reacted to the idea that interest rate rises might not be
as imminent as some had thought.

The more general performance of the economy, such as on wages, business
confidence and inflation, will also be important factors.

"Prepare for a few interest rate rises over the next few years," he told me.

"I don't want to get too focused on the precise timing, it is more about the
general path.

"The biggest set of economic decisions over the course of the next few years
are going to be taken in the Brexit negotiations and whatever deal we end up
with.

"And then we will adjust to the impact of those decisions in order to keep
the economy on a stable path."

'Mixed data'

Mr Carney said that some data on the economy had been "softer" such as on
retail sales and that inflation had fallen more rapidly than the Bank
forecast in February.

But he said it was important to look through short term volatility and
consider the overall momentum of the economy.

"We have had some mixed data," he said.

"On the softer side some of the business surveys have come off. Retail sales
have been a bit softer - we are all aware of the squeeze that is going on in
the high street.

"We'll sit down calmly and look at it all in the round.

"I am sure there will be some differences of view but it is a view we will
take in early May [at the next meeting of the Bank's Monetary Policy
Committee], conscious that there are other meetings over the course of this
year."

Many economists and investors in the markets believe that the MPC will vote
for a 0.25% rate rise at its May meeting.

But Mr Carney said that although people should be prepared for a possible
rate rise this year, there was still a lot of data to consider before they
needed to make the decision which will be announced on 10 May.

The strength of global growth would also be taken into consideration.

He said that there was lots of good news on the economy - on jobs, on some
wage increases - but there was still significant Brexit uncertainty.

Read more from Kamal here

"Most recently it has been the uncertainty around Brexit that has prevented
what would otherwise have been a surge in investment in this economy akin to
the big pick ups in business investment we have seen in other economies.

"Since the start of 2016 up until now we have seen much less investment than
would have expected. Unfortunately that means in the short term that the
speed limit is not increasing. Productivity is not increasing, which will
limit the rate at which people's wages can pick up."

Listening to the governor, I sensed that he was a little more doveish on the
possibility of an interest rate rise next month than he had been previously.

It will be a finely balanced decision and the next important statistic to
look at will be the three monthly economic growth figure next week.

If that is weaker than expected, then the chances of an interest rate rise
before the summer will recede.--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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Invest Wisely!

Bulls n Bears 

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