Major International Business Headlines Brief::: 09 August 2018

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Major International Business Headlines Brief::: 09 August 2018

 


 

 


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

 


 

 


 

 

*  South Africa's business confidence index rises in July

*  South Africa's Murray & Roberts drops Aveng merger plan

*  Glencore says mining industry considers legal action on new DRC mining
code

*  Naspers creates new video on demand unit as Netflix rivalry heats up

*  AB InBev to build new brewery in fast-growing Mozambique

*  Naspers' unit Multichoice concerned about Tanzania suspension notice

*  Sanctions make it harder for South Africa's MTN to repatriate Iran cash

*  Uganda's Stanbic Bank pre-tax profit rises, sees credit growth

*  Tullow Oil, Kenya agree to resume oilfields activity

*  South Africa's Mpact H1 profits fall on challenging market conditions

*  Will the first Ikea in India succeed?

*  Skripal attack: Russia faces US sanctions over Novichok use

*  Tesla board says there are buyout talks with Elon Musk

*  New York votes to cap Uber and Lyft services

*  China to hit US with tariffs on US imports worth $16bn

*  Films boost Murdoch's Fox revenue

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

South Africa's business confidence index rises in July

JOHANNESBURG (Reuters) - South Africa’s business confidence rose in July,
with activity mainly supported by an increase in merchandise export volumes
and retail sales as well as lower inflation, a survey showed on Wednesday.

 

The South African Chamber of Commerce and Industry’s (SACCI) monthly
business confidence index (BCI) rose to 94.7 in July from 93.7 in June, the
business body said in a statement.

 

SACCI said six of the thirteen sub-indices improved in July compared with
their June readings, while three were unchanged.

 

“The biggest positive month/month influences in July were merchandise export
volumes, lower inflation and real retail sales,” SACCI said in a statement.

 

Business confidence raced to a 2-1/2 year high in January after Cyril
Ramaphosa’s election as leader of the ruling African National Congress in
December, with the private sector anticipating business-friendly policy
changes following years of uncertainty under former president Jacob Zuma.

 

The enthusiasm has since stalled following a raft of lukewarm economic data
figures, such as the contraction in gross domestic product in the first
quarter and rising unemployment.

 

“Although there are still major economic challenges facing South Africa, it
appears the downward trend in the business climate since February 2018, has
lost its momentum and confidence could turn more positive,” SACCI said.

 

 

“This mainly depends on the removal of economic policy uncertainties and the
nurturing of all global economic relations for the benefit of South Africa
and all its people.”

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

South Africa's Murray & Roberts drops Aveng merger plan

JOHANNESBURG (Reuters) - South African construction company Murray & Roberts
said on Wednesday that it had withdrawn plans for a potential merger with
rival Aveng (AEGJ.J), saying there was “limited potential” for the deal to
go through.

 

“The board will continue to evaluate the possibility of revisiting the
potential transaction in future,” the company said in statement.

 

Aveng confirmed that it had received a formal notice from Murray & Roberts
to terminate the proposed deal.

 

Murray & Roberts and Aveng had announced merger plans in May, but German
investment company ATON, Murray & Robert’s biggest shareholder, opposed the
deal.

 

Last week, ATON successfully appealed a decision by a South African
regulator, allowing the deal to be blocked.

 

 

ATON, which has a 25.4 percent stake in Aveng, submitted an appeal to the
Takeover Special Committee (TSC) requesting TRP approval be overturned.

 

ATON and Murray & Roberts have been in a tug of war since March when the
German company launched a takeover bid for Murray & Roberts that was
rejected as poor value for shareholders by an independent board.

 

At 0821 GMT, shares in Murray & Roberts were up 1.15 percent while Aveng’s
shares were up 12.50 pct.

 

 

 

 

Glencore says mining industry considers legal action on new DRC mining code

(Reuters) - Glencore Plc’s Chief Executive Officer Ivan Glasenberg said the
company was reluctantly paying higher taxes under Democratic Republic of
Congo’s new mining code but the industry was considering legal action
against it.

 

Talks with the Congolese government were ongoing, but the industry was
looking “at the option of legal action,” Glasenberg said in a conference
call following Wednesday’s first-half results.

 

 

Naspers creates new video on demand unit as Netflix rivalry heats up

JOHANNESBURG (Reuters) - Naspers’ video entertainment division has created a
new over-the-top (OTT) video unit to be headed by Niclas Ekdahl in a bid to
counter stiff competition for video on demand from global players such as
Netflix.

 

OTT video services, which are transmitted via the internet without requiring
users to subscribe to a traditional cable or satellite pay-TV service, are
growing rapidly across Africa.

 

South Afria’s Naspers faces competition from Netflix, Amazon and local
players like Cell C Black, Kwese and Vodacom VideoPlay who continue to offer
alternative video content.

 

To counter this, it said on Wednesday it merged in the second quarter its
video on demand business Showmax Africa and internet TV service Dstv Digital
Media to form a unit called Connected Video.

 

The CEO of Naspers’ Video Entertainment business Imtiaz Patel said in a
statement the firm had made a healthy start in its OTT business through
Showmax and DStv Now services, which allow users to view sports and movies
on their mobile handsets.

 

“It’s now time to consolidate those learnings in a single unit to build the
best possible services for our customers,” Patel said.

 

Ekdahl, a former managing director for Ericsson’s video on demand service
NuVu, will start on Sept.10, the company said.

 

Naspers’ video entertainment business increased subscriber numbers by 1.5
million to over 13 million subscribers in Africa in the year to end March,
while trading profit rose 29 percent to $369 million.

 

 

 

AB InBev to build new brewery in fast-growing Mozambique

JOHANNESBURG (Reuters) - Anheuser-Busch InBev, the world’s biggest brewer,
will start building a more than 2 million hectolitre a year brewery in
Mozambique in the second half of next year, the company’s Africa head said
on Tuesday.

 

The Mozambique investment will look to fend off competition from rival
Heineken, which is the middle of building a $100 million brewery in the
southern African country.

 

It will also help AB InBev keep pace with demand in a market that saw growth
over more than 20 percent in the first half of this year, Ricardo Tadeu, the
company’s Africa zone president told journalists in Johannesburg.

 

“It’s a reflection of how much we have been adding on the continent,
constantly aiming for growth and putting the money where our mouth is,” he
said.

 

Tadeu said the company was not ready to disclose the size of its investment
in the new facility, but added that the land acquired for the project would
allow for further expansion of brewing capacity in the future.

 

AB InBev already brews the 2M and Laurentina brands in Mozambique in another
brewery.

 

Substantial gas reserves discovered off Mozambique’s Indian Ocean coastline
more than a decade ago were expected to jumpstart its economy. But progress
in setting up the infrastructure to tap them has been glacial, slowing the
pace of investment in many sectors.

 

AB InBev paid roughly $100 billion to buy rival SABMiller in 2016, giving it
a substantial presence on the continent of more than a billion people.

 

It has operations in 15 markets mainly in southern and east Africa, but also
Ghana and Nigeria in west Africa.

 

It announced plans in March to invest $100 million in a new 1 million
hectolitre per year brewery in Tanzania, where beer volumes jumped by a
fifth last year and its local unit Tanzania Breweries already runs four
facilities. [uL8N1R25C4]

 

“We’re very excited about Africa because we have experience in Latin America
and Asia. Some people look at Africa and see a lot of volatility,
uncertainty. We see opportunity,” said AB InBev CEO Carlos Brito, who was
visiting South Africa.

 

“For us, Africa is definitely the place to be.”

 

 

 

Naspers' unit Multichoice concerned about Tanzania suspension notice

JOHANNESBURG (Reuters) - Multichoice, the unit of South Africa’s Naspers,
said on Wednesday it was concerned that Tanzania’s telecommunications
regulator planned to suspend its services over a matter that was pending at
the Fair Competition Tribunal.

 

A notice issued by Tanzania’s Communications Regulatory Authority (TCRA)
said Multichoice had been instructed in June not to carry free-to-air
channels, but the de facto Africa pay-TV monopoly had persisted in doing so.

 

 

Sanctions make it harder for South Africa's MTN to repatriate Iran cash

JOHANNESBURG (Reuters) - MTN Group, Africa’s biggest mobile operator, is
sticking to its 2018 dividend target despite new U.S. sanctions making it
harder to repatriate cash from its Iran joint venture, the company said on
Wednesday.

 

MTN, which reported a 7 percent drop in half-year profits on Wednesday, has
around 3.4 billion rand ($256 million) in accumulated dividends and loans
from its joint venture in Iran.

 

MTN’s shares slumped by around 8 percent in late trading following the
results and its warning on Iran.

 

Sanctions imposed on Tehran by the United States this week have already led
banks and many companies around the world to scale back dealings with Iran.

 

Companies doing business with Iran will be barred from the United States,
President Donald Trump said on Tuesday.

 

“The sanctions may limit the ability of the group to repatriate cash from
MTN Irancell, including future dividends,” the company said in an earnings
report.

 

In March, MTN cut its 2018 dividend to reduce debt but said it aimed to
increase payouts by 10 to 20 percent over the next three to five years,
lifting sentiment in the firm which some investors had expected to scrap
this year’s payout.

 

MTN said on Wednesday that it stood by this plan.

 

“Despite continued challenges in repatriating funds from MTN Irancell, the
board remains committed to plans to declare a total dividend of 500 cents
per share for 2018,” Chief Executive Rob Shuter said on a conference call.

 

The company declared a dividend of 175 cents per share in the first six
months of the year, meaning it would have to pay 325 cents to reach in
second-half of the year to hit the target.

 

MTN said headline EPS, the primary measure of profit in South Africa that
excludes certain one-off items, fell 7 percent to 215 cents in the six
months through June due to unfavourable currency swings as well as a lower
contribution from joint ventures and associates.

 

Those contributions dropped by a hefty 66 percent to 197 million rand,
mainly due to a drop in the contribution from MTN Irancell and a widening
loss at its e-commerce joint venture, Africa Internet Holdings.

 

In addition to its 49 percent stake in Irancell, MTN said in May last year
it had agreed to invest more than $295 million in Iranian Net, a fixed line
broadband network in which it planned to buy an initial 49 percent stake.

 

MTN said its MTN Nigeria unit expected to list on the Nigerian Stock
Exchange before the end of 2018.

 

According to pre-IPO documents seen by Reuters in February, the telecoms
firm planned to raise at least $400 million to cut debt for its Nigeria
unit, then valued at $5.23 billion.

 

GROWTH BLUEPRINT

MTN is seen as one of post-apartheid South Africa’s biggest commercial
successes, but clashes with regulators in recent years have hobbled its
growth.

 

It appointed Shuter about a year ago to put it back on growth trajectory. He
has drawn up a new growth blueprint that includes branching out of basic
telecoms services into music streaming, e-commerce and mobile financial
services.

 

Revenues from MTN Mobile Money were up 50 percent year-on-year with the
number of users of the mobile payment and transfer service growing to over
24 million across 14 markets, outpacing competitors Orange and Airtel.

 

“We are putting a lot of effort and resources and money into the (Mobile
Money) platform, the distribution, the kiosks,” Shuter told Reuters in an
interview later on Wednesday. “We think we can execute on the ground and
carve out a good role for ourselves.”

 

The company is also reviewing its presence in markets where it is not a
major player.

 

MTN sold its tiny Cypriot business last month for 4 billion rand ($301
million) to Monaco Telecom, sparking vague talk that other smaller
businesses in Liberia, Guinea and Guinea-Bissau were next on the chopping
block.

 

“We want to be a high-growth geography but we also need a decent regulatory
environment, (a) stable trading environment. This means for example some of
these markets in the more war-torn areas will always be under review,”
Shuter said.

 

His comments would likely put the spotlight on Syria and South Sudan, both
of which have been gripped by civil war in recent years.

 

($1 = 13.3034 rand)

 

 

 

Uganda's Stanbic Bank pre-tax profit rises, sees credit growth

KAMPALA (Reuters) - Stanbic Bank Uganda, owned by South Africa’s Standard
Bank Group, said on Wednesday its half-year profit before tax rose 4
percent, compared to the first six months of 2017, helped by higher
non-interest income.

 

Uganda’s largest financial institution by assets said in results published
in local newspapers that it earned 133 billion shillings ($36 million)
compared to 128.5 billion for the first half last year.

 

“The slight uptick in profit is largely attributed to growth in non-interest
revenues supported by growth in customer transactions,” it said.

 

Earnings from fees and commissions were up at 71.7 billion shillings, from
66.4 billion.

 

Patrick Mweheire, the bank’s chief executive, said in comments published
with the results that there was a rebound in private sector credit flow
“after some anaemic growth the last couple of years.”

 

“We’re finally seeing growth ... I am very optimistic.”

 

Credit uptake was rebounding for a range of sectors including agriculture,
manufacturing and service.

 

Uganda’s central bank slashed its policy rate to 9 percent in February, the
lowest since policymakers begun using inflation-targeting monetary policy in
2011.

 

Authorities are keen to accelerate faster credit flow and revive economic
growth which has hovered around 4 percent in recent years, compared to what
the central bank says is potential growth of 7 percent.

 

($1 = 3,680.0000 Ugandan shillings)

 

 

 

Tullow Oil, Kenya agree to resume oilfields activity

NAIROBI (Reuters) - Tullow Oil and the Kenyan government have agreed to
resume work at Tullow’s oilfields where work to truck crude oil had stopped
for more than a month after protests by the community, a senior petroleum
ministry official said.

 

Protesters demanding more security Turkana in the northwest of the country
began blocking trucks carrying oil from Tullow’s fields in July.

 

The trucking scheme aims to transport about 2,000 barrels per day (bpd) of
crude from northern oilfields to the coast to test oil flow rates and other
technical issues before the start of full production and exports via a
pipeline to be built by 2022.

 

The pilot trucking scheme was launched in June.

 

“It was agreed that the operations of the ongoing oil development in Turkana
County commence forthwith without undue delay,” John Mosonik, chief
administrative secretary at the Petroleum and Mining Ministry, said in a
statement late on Tuesday.

 

“The Government has further resolved to establish a two-tiered system
framework that will provide communities living in Turkana county and Tullow
Oil with avenues for addressing any emerging issues and concerns.”

 

In late July, Tullow Oil said it had stopped work at its oilfields and
stopped the trucking operations after protests by the local community
disrupted a transport scheme, its chief executive said on Wednesday.

 

Kenyan media said the protests were to demand the deployment of more
security forces in the area, which has long been plagued by banditry and
cattle rustling.

 

Turkana, where the oil blocks are located, also lies near South Sudan, a
nation torn by years of conflict.

 

Tullow is targeting production in Kenya of at least 100,000 barrels of oil
equivalent per day after first oil in 2021/22.

 

The company is considering reducing its stake in the project to around 30
percent from 50 percent before the final investment decision.

 

The other partners in the project are Total and Africa Oil.

 

 

South Africa's Mpact H1 profits fall on challenging market conditions

JOHANNESBURG (Reuters) - South African paper and plastics packaging maker
Mpact reported a 13 percent fall in half-year earnings on Wednesday in the
face of challenging trading and market conditions.

 

The company reported headline earnings per share for the six months ended
June 30 of 29.7 cents versus 34.3 cents in the prior comparable period. HEPS
is the main profit gauge in South Africa which strips out certain one-off
items.

 

 

Will the first Ikea in India succeed?

Swedish furniture giant Ikea has opened its first store in India in the
southern city of Hyderabad.

 

With a growing middle class, India could be a big opportunity for the
company, but it is also a market with many quirks.

 

Ikea's giant blue store sits on a 13-acre campus, by the side of a busy
road, in HITEC city.

 

The technology hub in Hyderabad is also home to global firms such as
Microsoft, Google and Facebook.

 

The scale of the shop is something that has never been seen in India before.

 

Its size alone has piqued curiosity among those who may have never heard of
the brand.

 

And then of course, there are so many who have.

 

Upwardly mobile, well-travelled Indians have known Ikea for a while now.

 

In fact, with the number of global retailers who've come to India over the
past decade, some would say Ikea has taken its time to set up shop here.

 

The company's global chief executive Jesper Brodin said: "The market of
India for us is a dream.

 

"But to be honest, some years ago, when we looked into the business case of
India, we felt it was too high risk from the cost perspective [of] not
meeting our targets."

 

Is Ikea the Marmite of retailers?

How Ikea's Billy took over the world

Ikea plans ban on single-use plastics

So, what changed? Government policies, for one. In 2012, India allowed 100%
foreign direct investment in single-brand retail.

 

This was important for Ikea, because it didn't want to go down the joint
venture route.

 

The emergence and rapid growth of e-commerce is another reason why Ikea sees
more of an opportunity in India now.

 

In fact, even as it works on expanding its brick and mortar presence, the
company wants to start selling its wares online in the country by next year.

 

"They've been very patient about India. In terms of the amount of effort and
time that they have taken to launch the first store, it's unusual actually,"
said Arvind Singhal from consulting firm Technopak Advisors. "It shows to me
a determination to get it right in the market."

 

And Ikea has taken care to adapt to India.

 

Around the world, Ikea purchases arrive in customer homes in the famed
"flat-pack".

 

Stripping out the parts and assembling the furniture is a "do-it-yourself"
job. That's not something Indians are used to. The availability of cheap
labour in the country means people here rely on workmen or carpenters to do
that.

 

"We will argue a little bit with our customers to say - would you please
consider the do-it-yourself model?

 

"And the whole point of that is that you save money by doing that," says Mr
Brodin. "But we are not naive, and also in other markets we offer services,
for home deliveries, for kitchen installations. and in India we believe that
need will be slightly more than the average market.

 

"So here we have signed up with companies, experts, but also a social
entrepreneurship network with people that will be able to get great jobs in
serving customers with assembling."

 

They've also changed the other thing Ikea is so well known for - Swedish
meatballs.

 

At the store's 1,000-seater restaurant - its largest in the world - they are
available.

 

But they aren't traditional meatballs made of beef and pork. That could
offend religious sentiments here, and so there are chicken and vegetarian
meatballs on offer.

 

As are some Indian dishes like biryani and dal makhani.

 

But finally, whether or not people will actually shop at Ikea all comes down
to one thing - price.

 

"Indians are very price sensitive, but they're also value sensitive. You
can't give them substandard quality at cheaper rates. They want both," says
Paresh Parekh, partner at Ersnt & Young.

 

"Indians lose trust very fast, so I think they will have to get it right the
first time, in terms of price, quality and experience."

 

It's something Ikea's leadership seems to have taken into account.

 

"In India, we've gone all in as much as we can, and that means out of the
7,500 products that we have here, we've worked very hard, to have 1,000
products with a price of Rs. 200 ($3, £2.30) or less and 500 products for
less than Rs. 100," said Mr Brodin.

 

"With that offer, this is one of the price-attractive markets that we're
opening."

 

But India throws up other challenges. Huge tracts of land, to offer the true
Ikea experience, are hard to find in most big cities.

 

If they are available, they're expensive.

 

High import duties are another problem. And keeping prices low means it will
take longer to make money back.

 

Ikea has so far said it's investing $1.5bn in India.

 

Mr Brodin admitted it's going to be hard. "The investments are high and the
time until which you reach an economy of scale will be a stretch for us, but
we will try to endure," he said.

 

>From Thursday, they will be watching with bated breath to see how India
reacts to Ikea.--BBC

 

 

 

Skripal attack: Russia faces US sanctions over Novichok use

The US has said it will impose fresh sanctions on Russia after determining
it used nerve agent against a former Russian double agent living in the UK.

 

Sergei Skripal and his daughter Yulia were left seriously ill after being
poisoned with Novichok in Salisbury in March, though they have now
recovered.

 

A UK investigation blamed Russia for the attack, but the Kremlin has
strongly denied any involvement.

 

Russia has criticised the new sanctions as "draconian".

 

In a statement released on Wednesday, the US state department confirmed it
was implementing measures against Russia over the incident.

 

Spokeswoman Heather Nauert said it had been determined that the country "has
used chemical or biological weapons in violation of international law, or
has used lethal chemical or biological weapons against its own nationals".

 

What happened to the Skripals?

Who is Sergei Skripal?

What are nerve agents and what do they do?.

The British government has welcomed the move.

 

"The strong international response to the use of a chemical weapon on the
streets of Salisbury sends an unequivocal message to Russia that its
provocative, reckless behaviour will not go unchallenged," a UK foreign
office statement said.

 

The Russian embassy in the US hit back on Thursday morning, criticising what
it called "far-fetched accusations" from the US that Russia was behind the
attack.

 

Russia had become "accustomed to not hearing any facts or evidence", it
said, adding: "We continue to strongly stand for an open and transparent
investigation of the crime committed in Salisbury."

 

What are the sanctions?

The new sanctions will take effect on or around 22 August, and relate to the
exports of sensitive electronic components and other technologies.

 

The state department said "more draconian" sanctions will follow within 90
days if Russia fails to give reliable assurances it will no longer use
chemical weapons and allow on-site inspections by the United Nations.

 

An official said it was only the third time that the US had determined a
country had used chemical or biological weapons against its own nationals.

 

Previous occasions were against Syria and against North Korea for the
assassination of Kim Jong-nam, the half brother of leader Kim Jong-un, who
died when highly toxic VX nerve agent was rubbed on his face at Kuala Lumpur
airport.

 

Are these the only US sanctions against Russia?

No. In June the US imposed sanctions on five Russian companies and three
Russian individuals in response to alleged Russian cyber-attacks on the US.

 

All are prohibited from any transactions involving the US financial system.

 

Will Russian suspects face UK trial?

Poisoning area gets economy funding

Treasury Secretary Steven Mnuchin said the measures were to counter
"malicious actors" working to "increase Russia's offensive
cyber-capabilities".

 

After pressure from Republican members of Congress, the state department has
determined Moscow broke international law by using a military grade chemical
weapon on the Skripals.

 

While the US expelled some five dozen diplomats shortly after the poisoning,
the administration stopped short of making a formal determination that
Russia had broken international law.

 

But Congress has been pushing for such a decision and now the state
department has confirmed Russia's actions contravened 1991 US legislation on
the use of chemical weapons. That breach automatically triggers the
imposition of sanctions and places requirements on Russia to avert further
restrictions in three months' time.

 

Those requirements could include opening up sites in Russia for inspection -
a move Moscow would probably resist.

 

So far President Donald Trump has been silent on this latest move - which
could well derail his attempts to develop a new, warmer relationship with
Vladimir Putin.

 

What was the nerve agent?

Following the incident, the British government said the military-grade nerve
agent Novichok, of a type developed by Russia, had been used in the attack.

 

 

Relations between Russia and the West hit a new low. More than 20 countries
expelled Russian envoys in solidarity with the UK, including the US.
Washington ordered 60 diplomats to leave and closed the Russian consulate
general in Seattle.

 

Three months after the Salisbury attack, two other people fell ill at a
house in Amesbury, about eight miles from the city. Dawn Sturgess later died
while her partner, Charlie Rowley, spent three weeks recovering in hospital.

 

After tests, scientists at the UK's military research lab, Porton Down,
found the couple had also been exposed to Novichok.

 

Mr Rowley told ITV News he had earlier found a sealed bottle of perfume and
given it to Ms Sturgess, who sprayed the substance on her wrists.--BBC

 

 

 

Tesla board says there are buyout talks with Elon Musk

Tesla's board has confirmed that it will consider the proposal by chief
executive Elon Musk to take it private.

 

A statement was issued by six members of the electric carmaker's board after
Mr Musk tweeted to say he had the funding to de-list the company.

 

The board had "met several times over the last week" to discuss going
private, the statement said.

 

They said this "included discussion as to how being private could better
serve Tesla's long-term interests".

 

Mr Musk said in his tweet on Tuesday that shareholders would be offered $420
(£326) per share, valuing the business at more than $70bn.

 

This would make it the biggest deal of its kind, surpassing the purchase of
utility TXU Corp in 2007 for $44bn by a consortium.

 

The brief statement by six of the nine board directors said Mr Musk had
"opened a discussion" about taking the company private last week.

 

The discussions "addressed the funding for this to occur", the six directors
added. They did not include Mr Musk, his brother Kimbal Musk, and Steve
Jurvetson, a venture capitalist.

 

'Irregular' announcement

The board statement came amid questions about how Mr Musk opted to disclose
the possible de-listing to investors.

 

While companies are allowed to make announcements via social media,
typically they also make a simultaneous regulatory filing, said Andrew M
Calamari, a partner at the law firm Finn Dixon & Herling and former director
of the New York office of the Securities and Exchange Commission, the US
market regulator.

 

"Just in terms of the style of this, it strikes me as very irregular," Mr
Calamari said.

 

"It also raises questions about his intent," he added. "Was he in earnest in
what he's saying, or does he have some other motive" like influencing the
stock price.

 

Tesla shares reached a peak of $368 after Mr Musk's tweets on Tuesday,
before trading on the stock market was halted.

 

Trades resumed later that afternoon, after the company published an email
from Mr Musk to employees elaborating on the plans.

 

Tesla shares surged close to their all-time high of $385, which they touched
almost a year ago, but fluctuated on Wednesday after the board members
issued their statement.

 

'Wild swings'

In the staff memo, Mr Musk explained why he wanted to take the company
private.

 

"As a public company, we are subject to wild swings in our stock price that
can be a major distraction for everyone working at Tesla, all of whom are
shareholders," he wrote.

 

"Being public also subjects us to the quarterly earnings cycle that puts
enormous pressure on Tesla to make decisions that may be right for a given
quarter, but not necessarily right for the long term," he wrote.

 

He added that the company was "the most shorted stock in the history of the
stock market" - a trading strategy which assumes share prices will fall - so
"being public means that there are large numbers of people who have the
incentive to attack the company".

 

Those traders are likely to have lost money when the share price rose on the
announcement about a delisting.

 

Questions continue

Mr Musk already owns 20% of the company. He said his intention in taking the
company private was not to increase his personal holding and his plan would
give existing investors the option to retain their shares.

 

Regulators are likely to be interested in what evidence exists - such as
agreements with investors or banks - for Mr Musk's claim that funding was
"secured", Mr Calamari said.

 

The Securities and Exchange Commission, the US market regulator, has
inquired about the issue, the Wall Street Journal reported.

 

The structure of the deal also remains ambiguous, said Adam C Pritchard,
professor of securities law at the University of Michigan.

 

If more than 2,000 investors opt to retain their shares, then the firm would
be subject to the disclosure rules of a public company, he added.

 

"Intuitively it doesn't make sense because it would still be a public
entity, and the public entity status is what is apparently objectionable to
Musk," Mr Pritchard said.

 

Steven Kaplan, a University of Chicago professor who researches private
equity, said it would be difficult for Mr Musk to raise the necessary
finance when Tesla has still not made a profit.

 

"The company is cash-flow negative. How do you use any debt on a company
that is cash-flow negative?" he said.--BBC

 

 

 

New York votes to cap Uber and Lyft services

New York has become the first major US city to approve a cap on ride-hail
car licences and set minimum pay conditions for drivers.

 

The bill will impact popular app-based services like Uber and Lyft, who have
both spoken out against it.

 

Yellow cab drivers and anti-congestion campaigners have pushed for
regulation after the number of app-based cars soared in recent years.

 

About 80,000 now operate throughout the city, versus just 13,500 yellow
cabs.

 

Taxi drivers demonstrated in support of the bill outside the headquarters of
the New York City Taxi and Limousine Commission (TLC) this week, holding
signs with the names and faces of six taxi drivers who had taken their lives
since December.

 

Campaign and union groups directly linked the financial pressures caused by
the growth of ride-hail car services to the driver suicides.

 

The bill passed on Wednesday approves a year-long moratorium on new
ride-hail vehicle licences for 12 months, with the exception of wheelchair
accessible cars.

 

It also gives the TLC the power to regulate minimum rates of fares, minimum
pay for drivers and create a new rulebook for app companies.

 

The legislation was supported by New York Mayor Bill de Blasio, who said it
would help "stop the influx of cars" causing congestion in the city.

 

However, ride-hail services have criticised the bill and argued it will hurt
consumers.

 

Uber said in a statement: "The city's 12-month pause on new vehicle licenses
will threaten one of the few reliable transportation options while doing
nothing to fix the subways or ease congestion."

 

Uber ruled as a cab firm in Europe

Uber applies for drunk passenger patent

Lyft said the move would "bring New Yorkers back to an era of struggling to
get a ride, particularly for communities of colour and in the outer
boroughs."

 

New York is the biggest US market for app Uber.

 

A study last month estimated that app-based drivers now complete over 17
million trips a month in New York.

 

The study, commissioned for the TLC, recommended a minimum hourly wage for
drivers of $17.22 per hour - and found that 85% of app-based drivers
currently net below that amount.

 

The New York Taxi Workers Alliance celebrated the vote, describing it on its
website as a historic victory for its 18,000-member strong union.--BBC

 

 

 

China to hit US with tariffs on US imports worth $16bn

China's commerce ministry has announced that it will start imposing 25%
import duties targeting $16bn (£12.4bn) worth of US goods.

 

The Chinese counter-move will take effect immediately after the US imposes
tariffs on the same amount of Chinese goods on 23 August.

 

The list of US imports affected by the taxes includes coal, oil, chemicals
and some medical equipment.

 

Last month, the US imposed duties of 25% on Chinese imports worth $34bn.

 

The US is also considering further tariffs on another $200bn worth of
Chinese goods which could come into effect in September.

 

For its part, China has threatened to ratchet up the tit-for-tat trade war
by slapping tariffs on another $60bn of American imports.

 

At the same time, Beijing reported a $28.1bn trade surplus with the US in
July, just below the record $28.9bn seen in June. But it was 11% higher than
in the same month last year.

 

US President Donald Trump started announcing new tariffs on imports in
January as part of an attempt to negotiate what he called "fair, bilateral
trade deals that bring jobs and industry back onto American shores".

 

The first tariffs were imposed in March and China responded in April. So
far, despite the rhetoric, only $37bn worth of imports into China and the US
have actually been affected.

 

However, President Trump is also engaged in trade disputes with other
countries, such as Canada and Mexico, and has imposed separate tariffs on
items that include steel and aluminium, washing machines and solar
panels.--BBC

 

 

 

Films boost Murdoch's Fox revenue

US media company 21st Century Fox saw revenue rise more than 17% in the
fourth quarter, boosted by its films such as Deadpool 2.

 

Revenue at the firm, which is led by Rupert Murdoch and his family, reached
$7.9bn (£6.1bn) in the three months to the end of June, from $6.75bn in the
same period last year.

 

Profits nearly doubled to about $920m, helped in part by a lower US tax
rate.

 

The results came as Fox plans to break up its empire.

 

It is selling its film and television divisions to Walt Disney, in a $71bn
cash-and-stock deal that shareholders approved last month.

 

The firm's international properties, including its stake in satellite
broadcaster Sky, are also included in the deal, which Fox said it expects to
close in the first half of 2019, pending approval from regulators.

 

Fox plans to hold onto its news and sports units, which will be spun off
into a separate company.

 

Rupert Murdoch and son Lachlan, who chair Fox, said: "As we move closer to
combining our businesses with Disney and establishing new "Fox", we are
convinced that the paths we are creating for our iconic businesses will
drive enduring and growing value for our shareholders."

 

Sky bid

Executives did not discuss the firm's efforts to take over the 61% of Sky it
does not own, which were upset after US cable giant Comcast topped Fox's
bid.

 

Fox has until 22 September to revise its offer, but Disney would have to
approve plans to submit a higher bid.

 

On a call with financial analysts this week, Disney declined to comment on
its plans, calling it an "open matter".

 

Fox said it is "considering its options", repeating prior statements.

 

The shake-up of Fox's business comes amid competition from streaming
services and digital advertising, which have hurt traditional pay-TV
companies.

 

Like Disney, which is working on its own streaming services to compete with
the likes of Netflix, Fox is planning its own streaming service for its
flagship Fox News channel. The service is expected to launch around the end
of the year.--BBC

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


NicozDiamond

shares delist from the ZSE

 

06/07/2018

 


Zimbabwe

Heroes’ Day

Zimbabwe

13/08/2018

 


Zimbabwe

Defence Forces Day

Zimbabwe

14/08/2018

 


The Harare Agricultural Show

The Harare Agricultural Show

The Harare Agricultural Show

August 27- September 1

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 


 

 

 

 


 <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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