Major International Business Headlines Brief::: 27 April 2018

Fri Apr 27 15:23:02 CAT 2018

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Major International Business Headlines Brief::: 27 April 2018

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

*  Implats' Marula mine in S.Africa rebounding as community violence fades

*  Former chairman Wiese sues Steinhoff for $5 billion

*  Angola's sovereign wealth fund says to remove Quantum Global as asset
manager

*  Kenya energy minister orders electricity tariffs review after complaints

*  Namibia to pare back Kudu gas-to-power project

*  Nigeria's state oil firm illegally paid $707 mln in fuel subsidies in
2017, Senate probe finds

*  South African fuel prices to increase in May

*  Egypt says non-oil exports increase 15 percent in Q1 of 2018, trade
volume grows

*  Zambia April inflation quickens to 7.4 percent y/y - CSO

*  South Africa's rand stabilises after torrid week; shares rise

*  US economic growth slows to 2.3%

*  Amazon's sales surge and profits double

*  UK economy in weakest growth since 2012

*  US farmers say chlorine-washed chicken should be part of a UK free trade
deal

*  RBS profit trebles as costs fall

 <mailto:info at bulls.co.zw> 

Implats' Marula mine in S.Africa rebounding as community violence fades

JOHANNESBURG (Reuters) - South African platinum producer Impala Platinum
(Implats) said on Thursday its Marula mine, which had been on the verge of
closure because of disruptions from community protests, was rebounding
strongly and ramping up production.

The eastern limb of South Africa’s platinum belt has been a flashpoint of
labour and community unrest, threatening production and the viability of
some operations in the world’s largest producer of the precious metal.

In a report on its quarterly production for the period to the end of March,
Implats said the turnaround at Marula flagged in its annual results at the
start of March was being sustained.

“The period under review saw a notable decline in community disruptions
compared to the prior comparable period, which was significantly impacted by
protest action,” the company said.

Platinum production more than doubled from the same period last year to
20,000 ounces from 9,000 ounces. Platinum production for the group as a
whole was down 4.5 percent to 316,000 ounces from 331,000 ounces.

The rebound is significant and is a rare piece of good news in the South
African platinum industry, which has been grappling for years with depressed
prices and violent protests and strikes, making most of its shafts
loss-making.

Last year, Implats was considering shutting Marula down after it lost 10,000
ounces out of almost 80,000 ounces of planned output to community protests
that included road blocks, vehicle stonings and assaults on people reporting
for work.

A nearby chrome project Implats had set up with a tribal council, made up of
a chief and his aides, had collapsed, triggering a wave of protests from
local residents who had hoped to benefit from its revenue flows - part of a
wider pattern of such deals coming unstuck and fanning turbulence.

The project has since been rebooted, dousing the flames of discontent aimed
at it.

The region in north eastern South Africa was hit by over 400 incidents of
social unrest between Jan. 1 2016 and March 31 this year which affected the
operations of platinum producers including Implats and rivals such as Anglo
American Platinum.

 <mailto:info at bulls.co.zw> 

Former chairman Wiese sues Steinhoff for $5 billion

JOHANNESBURG (Reuters) - South African businessman Christo Wiese has
launched a $5 billion lawsuit against crisis-hit Steinhoff, a retail company
in which he was a board member and biggest shareholder until earlier this
year, his company Titan Group said.

Wiese resigned as chairman in December last year, days after Steinhoff
uncovered accounting irregularities that sent its shares crashing.

($1 = 12.3600 rand)

Angola's sovereign wealth fund says to remove Quantum Global as asset
manager

JOHANNESBURG (Reuters) - The sovereign wealth fund of Angola (FSDEA),
Africa’s No. 2 crude producer, “is taking steps to remove” Swiss-based
Quantum Global as its asset manager, it said on Friday.

“FSDEA has great concerns about Quantum Global’s approach to investment of
the FSDEA funds, as it believes that is not fully aligned with the
principles for which the FSDEA was established,” the fund said in a
statement.

Quantum Global could not immediately be reached for comment.

The move comes two weeks after Mauritius froze bank accounts and suspended
business licences linked to Quantum Global Investments Africa Management.

QG Investments Africa Management, which said it was cooperating with
authorities in Mauritius, is run by Jean-Claude Bastos de Morais, a business
partner of Jose Filomeno dos Santos and the director of Quantum Global
Investment Management.

Jose Filomeno dos Santos, the son of José Eduardo dos Santos, Angola’s
former president, was until recently the head of Angola’s sovereign wealth
fund.

The younger dos Santos has been charged with fraud against Angola’s central
bank, involving the transfer of $500 million in Britain.

Kenya energy minister orders electricity tariffs review after complaints

NAIROBI (Reuters) - Kenya’s energy minister ordered the energy regulatory
commission to review electricity tariffs after consumer complaints that
monthly bills from Kenya Power had jumped in the second half of last year.

Kenya Power is state-controlled and it is the sole electricity distributor
and the bulk of its power comes from Kenya Electricity Generating Company
(KenGen). The commission, which is the independent regulator for the sector,
sets tariffs for Kenya Power.

Energy Minister Charles Keter, whose ministry is represented on the board of
Kenya Power, told a news conference that the company was ready to be
audited. “We are open for any scrutiny from any quarter.”

A group of Kenyan electricity consumers filed a class action lawsuit against
Kenya Power in January, saying that their monthly bills jumped, some
tripling, in the second half of last year. A court hearing is set for May.

Namibia to pare back Kudu gas-to-power project

WINDHOEK (Reuters) - Namibia will reduce the size of the planned Kudu Power
Station after off-take agreements with South Africa’s Eskom and Zambia’s
Copperbelt Energy Corporation failed to materialize, the chief executive of
power utility NamPower said on Friday.

Namibia’s offshore Kudu Gas Fields have proven and probable recoverable
reserves estimated at more than 3.3 trillion cubic feet and is key to the
diamond producer’s plans to reduce its dependence on electricity imports.

The sparsely-populated southern African nation’s installed capacity is 513.5
megawatts.

NamPower Chief Executive Officer Simson Haulofu said the decision to resize
the power plant from 850MW to 442.5 MW was made considering the power demand
load forecast for Namibia.

“The decision was also made to address the need for the project’s reliance
on export agreements to reach financial close. The export agreements were
one of the issues that delayed the project as they took forever,” Haulofu
said.

He said the project will no longer rely on export agreements to offload the
surplus capacity as there won’t be any under the resized project. The power
plant is now expected to cost an estimated $9.4 billion Namibian dollars
($760 million), down from the previous estimate of 15.6 billion Namibian
dollars.

($1 = 12.3872 Namibian dollars)

Nigeria's state oil firm illegally paid $707 mln in fuel subsidies in 2017,
Senate probe finds

ABUJA (Reuters) - Nigeria’s state oil company illegally paid 216 billion
naira ($707.4 million) in fuel subsidies in 2017, according to a Senate
probe, the findings of which were released on Thursday.

The investigation by the upper legislative house said that parliament had
not approved those payments by the Nigerian National Petroleum Corporation
last year, and any further spending on subsidies should be halted with
immediate effect.

South African fuel prices to increase in May

JOHANNESBURG (Reuters) - The retail price of petrol in South Africa will
rise by 3.4 percent from May 2, while the price of wholesale diesel will
rise by 4.6 percent, the energy department said on Thursday.

The price of petrol will rise by 49 cents to 14.97 rand per litre in the
commercial hub of Gauteng province, while diesel will go up by as much 59
cents to 13.34 rand.

The Central Energy Fund said in a statement that the depreciation of the
rand against the dollar in past month as well as a higher oil price globally
had contributed to the rise in local fuel prices.

Egypt says non-oil exports increase 15 percent in Q1 of 2018, trade volume
grows

CAIRO (Reuters) - Egypt said on Friday its non-oil exports for the first
quarter of 2018 had increased by 15 percent compared with a year earlier,
reaching $6.324 billion.

The volume of foreign trade in the same period grew 9 percent to $21.265
billion, up from $19.520 billion, Trade Minister Tarek Kabil said in a
statement.

The trade budget deficit improved by 2 percent, the statement said. The
improvements were thanks to increased exports from Egypt’s chemicals,
fertiliser and clothes manufacturing sectors, among others, it said.

Zambia April inflation quickens to 7.4 percent y/y - CSO

LUSAKA (Reuters) - Zambia’s annual inflation rate quickened to 7.4 percent
in April from 7.1 percent a month earlier, official data showed on Thursday.

On a month-on-month basis, the rate slowed to 0.6 percent in April compared
with 1.3 percent in March, data from the Central Statistical Office showed.

“The increase in the annual rate of inflation was attributed to price
movements in food,” the statistics agency said in a statement.

South Africa's rand stabilises after torrid week; shares rise

JOHANNESBURG (Reuters) - South Africa’s rand stabilised on Thursday after a
torrid week which saw the currency set several new three-month lows against
the dollar, while stocks rose thanks to gains for firms including banks and
some retailers.

South African markets will be closed on Friday for the Freedom Day public
holiday.

At 1525 GMT the rand was steady at 0.02 percent at 12.4325 per dollar,
having fallen as far as 12.5325 on Wednesday, its weakest since Jan. 10.

The South African currency is down around 2.6 percent since the end of last
week as emerging market currencies worldwide have suffered steep falls
because of a soaring dollar.

“We expect the rand to regain lost ground as soon as global conditions
stabilize. The recent change of leadership points to structural improvements
in the South African economy and should underpin confidence,” currency
analysts at UBS said in a note.

South Africa’s new president Cyril Ramaphosa has staked his reputation on
revitalising the economy and rooting out corruption, which marred his
predecessor Jacob Zuma’s nine years in power. Since Ramaphosa’s election in
February, business and consumer confidence have risen.

Government bonds were little changed, with the yield on the benchmark
government bond due in 2026 up 1.5 basis points to 8.220 percent.

On the bourse, the benchmark Top-40 index rose 0.89 percent to 50,684
points, while the All-Share index gained 0.82 percent to 57,453 points.

“We’re seeing a bit of a breather after a sharp selloff in the last three
days,” said FFO Securities portfolio manager Wilmar Buys. “We are recovering
on low volumes.”

Most sectors closed higher, with banks, utilities, retailers and telecoms
seeing gains. Rand hedge stocks, which investors use to position for a
weaker rand, came under pressure.

Clothes retailer Mr Price closed up 3.79 percent to 272.00 rand after saying
it expected full-year earnings per share to rise by up to 22 percent.

Crisis-hit retailer Steinhoff was an outlier, closing down 11.3 percent to
1.96 rand after falling as much as 17 percent, when former board member and
shareholder Christo Wiese said he was launching a $5 billion lawsuit against
the company.

US economic growth slows to 2.3%

US economic growth slowed to an annualised rate of 2.3% in the first quarter
of 2018, the Commerce Department said on Friday.

The figure is better than the 2% economists had predicted, but still down
from the rate of 2.9% seen in the fourth quarter of 2017.

Cautious consumer spending, which grew at its weakest pace in nearly five
years, was blamed for the slowdown.

Businesses buying less equipment also held back the rate of growth.

Growth in consumer spending, which makes up more than two-thirds of US
economic activity, eased to a 1.1% rate in the first three months of 2018.
That was the slowest pace since the second quarter of 2013 and followed the
fourth quarter's 4% growth surge.

Tax reforms

Ian Shepherdson, chief economist at Pantheon Macroeconomics, said an intense
hurricane season last year had increased the fourth quarter spending
figures, as Americans replaced and repaired weather-damaged goods. That led
to a spending lull in recent months.

Analysts expect growth will accelerate in the next quarter as US workers
begin to see the impact of the Trump administration's $1.5 trillion income
tax package trickle through to their pay cheques.

Nancy Curtin, chief investment officer at Close Brothers Asset Management,
said: "These weaker first quarter growth figures are unsurprising in the
context of historic seasonal weakness of this quarter in the US, exacerbated
by severe weather. We should not be disheartened."

Ms Curtin added that, despite these figures, President Trump may be able to
deliver on his "bombastic growth ambitions".

"Earnings have stabilised, and the benefits of last year's tax reforms are
starting to materialise, though the actual spending of money will take
time."--BBC

Amazon's sales surge and profits double

Amazon has reported a 43% surge in revenues for the first quarter, fuelled
by online shopping in the US.

The internet retail giant said sales rose to $51bn (£36.6bn) in the three
months to March, surpassing analysts' forecasts.

Amazon also said that its profit more than doubled, sending its share price
to a new high in after-hours trading on the New York Stock Exchange.

It added that it expects profit and revenue to grow in the second quarter.

Over the three months to March, Amazon's net profit rose to $1.6bn from
$724m in the same period last year.

Amazon was founded and is led by Jeff Bezos who, according to Forbes
magazine, is now the richest man in the world and owns The Washington Post
newspaper.

The company has recently been targeted by US President Donald Trump, who
claims Amazon does not pay enough tax.

He has also claimed it is ripping off the US Postal Service which, he
alleges, loses an average $1.50 for each package it delivers for Amazon.

Wedbush Securities analyst Michael Pachter told Reuters that success is "the
best revenge that Bezos can get against the administration for its veiled
threats about sales taxes and not paying its fair share".

Amazon reported that sales from its North American business rose to $30.7bn
compared to $20.9bn in the first quarter last year.

Its profit also leapt to $1.1bn from $596m previously.

Its also said that Amazon Web Services, which hosts a cloud computing
platform that is used by a number of major companies, also performed well in
the quarter.

However, at its international business, while sales rose to $14.8bn its
losses expanded to $622m compared to $481m last time.--BBC

UK economy in weakest growth since 2012

The UK economy grew at its slowest rate since 2012 in the first quarter of
the year, the Office for National Statistics (ONS) has said.

GDP growth was 0.1%, down from 0.4% in the previous quarter, driven by a
sharp fall in construction output and a sluggish manufacturing sector.

The ONS said the recent extreme weather had a "relatively small" impact.

The Prime Minister's spokesman said the data was "clearly disappointing" but
the economic fundamentals "are strong".

He said the economy "has grown every year since 2010 and unemployment is at
a 40 year low, but we are not complacent". The government would continue
with a balanced approach, he added.

Sterling fell sharply as the chances of an interest rate rise in May
recceded. Following the news the pound was down almost one and a half cents
against the dollar at $1.3775.

Rob Kent-Smith, head of national accounts at the ONS, said: "Our initial
estimate shows the UK economy growing at its slowest pace in more than five
years with weaker manufacturing growth, subdued consumer-facing industries
and construction output falling significantly.

"While the snow had some impact on the economy, particularly in construction
and some areas of retail, its overall effect was limited with the bad
weather actually boosting energy supply and online sales."

The figures are a first estimate and are likely to be revised by the ONS as
more data becomes available. Many economists had forecast first-quarter
growth of 0.3%.

John Hawksworth, chief economist at PwC, said: "These are only preliminary
figures and are based largely on estimates rather than actual data for
March, when the snow was at its worst. So there could be larger than usual
revisions."--BBC

US farmers say chlorine-washed chicken should be part of a UK free trade
deal

Chlorine-washed chicken and hormone-injected beef should be part of a UK/US
free trade deal, a farming union said.

Roger Johnson, president of America's National Farmers Union, said US food
was "perfectly safe" and there had been a lot of "fear-mongering".

The politically-influential union represents more than 200,000 US farms.

Mr Johnson also told the BBC that a free trade deal would open up the huge
US market to British products in a boost for UK farmers.

Agricultural products are likely to form a central part of any free trade
deal with America that both the UK and US governments have said they want to
sign when Brexit has been completed.

Any deal is likely to be controversial and the British National Farmers
Union has already made it clear its reservations about allowing open access
to US food products.

American food standards have been criticised in the UK and the European
Union prohibits many US products.

They include chicken, which is routinely washed in chlorine to remove
bacteria; beef injected with growth hormones and pork injected with the drug
ractopamine, which aids the building of muscle mass in pigs.

Read more from Kamal

The EU and the US also have very different approaches to genetic
modification, with America allowing it in many crops that are exported.

The EU is more cautious and any opening up of the market between the US and
the UK on food could affect the UK's trade with the rest of Europe, where
much of Britain's food exports are sent.

The United States Trade Representative, which draws up policy
recommendations for the President, said that the EU bans on American food
"unnecessarily restrict trade" and were not based on "scientific
principles".

With the UK due to leave the EU and the single market and the government
planning to quit the customs union, the UK will able to sign free trade
deals with other countries, including America.

"I would not argue that it is a lower standard, I would argue it's a
different standard," Mr Johnson told me about the different scientific
approaches on either side of the Atlantic.

He said that America was more "risk-tolerant": "I think it is fair to say
that the standards that we follow allow for more rapid scientific
advancement, that a more cautionary approach [from the EU] means that
scientific advances are going to happen more slowly.

"The trade negotiations need to figure out a way to allow both of these
standards to be used and in a way that is honest and truthful - and let
consumers choose."

Mr Johnson said that strong cultural and political links between the US and
Britain meant that agreement was possible and stronger trade would be a
boost to the economies of both countries.

He also argued that clear labelling would be important so that consumers
could decide what they wanted to buy.

There was also a growing market in America for British products because of
the different standards, which were often a "fashionable" choice for many
Americans.

"Why is it that it is governments that are saying 'no you're not allowed to
do this' or 'you're not allowed to do that' if the processes are judged to
be safe, in one or both of the countries?" he said.

"Let's be transparent about it and let the consumers make the decision.
There's a lot of fear-mongering that happens around these kinds of things:
'Oh my god, we don't want to be eating chlorine, that's a gas that kills
people'.

"You know what - water is a liquid that drowns people; it doesn't mean we
don't drink it."--BBC

RBS profit trebles as costs fall

Royal Bank of Scotland has reported a profit of £792m for the first three
months of the year, up from £259m for the same quarter last year.

The rise is partly thanks to a fall in restructuring costs, and a drop in
conduct and litigation costs.

Running costs at the bank, which is 72% state-owned, are also falling as it
continues its plan to shrink in size.

The quarterly profit follows on from RBS's first annual profit in 10 years,
reported in February.

The profit figure was well above estimates.

RBS did not set aside any more money to cover costs for payment protection
insurance (PPI) mis-selling claims.

The bank still has the threat of a major fine for mis-selling mortgages in
the US in the run-up to the credit crisis hanging over it.

The fine could come any time this year, and estimates of its size vary
wildly, between $1bn-$9bn.

The bank has already made provisions for the fine of £3bn.

Once this is out of the way RBS is expected to return to paying dividends.

*         RBS boss defends branch closures

*         The hotel that RBS took and sold to... RBS

*         Barclays pushed into loss by US payout

*         Lloyds Bank profits jump by 23%

The bank's chief executive, Ross McEwan, said: "This is a good set of
results, showing the progress we are making, despite a more competitive
market. Our income is up, costs are down and our capital has strengthened
again."

RBS's "buffer" of capital - a key measure of any bank's strength - is 16.4%,
well above its target of 13% and a level which should mean it can withstand
any fine from the US Department of Justice for mortgage mis-selling.

RBS has been under the spotlight in recent months over the conduct of its
specialist recovery division, the Global Restructuring Group (GRG), which
operated between 2005 and 2013.

The GRG was marketed as an expert service that could save a business, but
according to an official report, it mistreated thousands of small firms.

Richard Hunter, head of markets at Interactive Investor, said: "RBS
continues to move away from its previous existence as something of a
financial basket case, although the journey is far from over.

"There remain three major hurdles to be cleared in the form of settlement of
the US legacy issues once and for all, the removal of the UK government
stake and the resumption of the dividend."

RBS shares were barely changed in early trading, falling by 0.5% to
271p.--BBC

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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> 

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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
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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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