Major International Business Headlines Brief::: 15 August 2018

[Bulls n Bears]

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

 


 

 


Major International Business Headlines Brief::: 15 August 2018

 


 

 


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

 


 

 


 

 

*  S.Africa’s Ramaphosa proposes new sovereign wealth fund: party officials

*  South African rand slips on Turkey concerns, dollar strength

*  Gold Fields' CEO says South Deep lay-offs "last-gasp measure"

*  Nigeria's GT Bank sees 10 pct loan growth this year

*  Nigeria's state-owned oil company considers refinery partnerships

*  Lazard drafting plan to bolster balance sheet of S.Africa's Eskom:
sources

*  Ethiopia plans to build new airport in Oromia region -Fana

*  Egypt's central bank expected to hold rates as it eyes inflation

*  Turkey issues retaliatory tariffs on US imports

*  Tesla directors: 'No formal proposal' to take company private

*  Tinder's founders and former boss sue dating app owners

*  South Korea to ban some BMW vehicles over engine fires

*  Amazon's one-day delivery ad banned as 'misleading'

*  US pushes back on foreign takeover deals

*  Venezuela crisis: Maduro to curb fuel subsidies

*  Vienna ranked as most liveable city in the world

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

S.Africa’s Ramaphosa proposes new sovereign wealth fund: party officials

JOHANNESBURG (Reuters) - South African President Cyril Ramaphosa has
proposed setting up a sovereign wealth fund to help boost economic growth,
and his ruling African National Congress (ANC) backs the plan, two senior
party officials said on Tuesday.

 

Ramaphosa, who replaced scandal-plagued Jacob Zuma as ANC leader late last
year, is trying to rekindle growth before next year’s national election.

 

There were no immediate details on where the money for the fund would come
from. Most sovereign wealth funds utilise revenues from oil and gas exports.
South Africa does not have significant energy deposits but has a large,
albeit struggling, mining industry.

 

The idea of setting up a sovereign wealth fund, which other emerging markets
such as Russia use to lift growth at times of weak commodity prices, was
dropped by South African officials several years ago when commodity prices
plunged.

 

“We support the idea, put forward by the president, of the creation of a
sovereign wealth fund,” ANC Deputy Secretary General Jessie Duarte told
reporters on Tuesday.

 

“It’s another mechanism to ignite our economic prospects.”

 

South Africa’s economy has performed poorly this year, despite a short-lived
pickup in business and consumer conference around the time that Ramaphosa
replaced Zuma as ANC leader.

 

Economists are sceptical that South Africa - a major producer of commodities
such as gold and coal - could easily set up a sovereign wealth fund given
its large budget deficit and shrinking mining sector. 

 

Zizi Kodwa, a member of the ANC’s National Executive Committee, told Reuters
that it would be government that would decide which revenues to use to set
up the fund.

 

“South Africa has a lot of mineral wealth, but it’s not up to the ANC to
decide where to take the money from,” Kodwa said.

 

“A sovereign wealth fund could be an important source of stimulus, that is
what we are saying.”

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

South African rand slips on Turkey concerns, dollar strength

JOHANNESBURG (Reuters) - South Africa’s rand slipped early on Wednesday, as
a renewed slide in the Turkish lira dented appetite for emerging market
assets and boosted safe-haven demand.

 

At 0630 GMT, the rand traded 0.2 percent weaker at 14.2800 versus the U.S.
dollar, which struck a 13-month peak against a basket of major currencies.

 

The rand, one of the most-traded emerging market currencies, is highly
susceptible to swings in sentiment on global markets.

 

The unit is down around 6 percent in the past week as investors have dumped
assets seen as risky in the wake of the Turkish lira’s precipitous plunge.

 

The lira is down more than 16 percent over the past week and fell around 0.5
percent by 0630 GMT, hurt by worries over President Tayyip Erdogan’s calls
for lower interest rates and worsening ties with the United States.

 

Analysts have said the rand is likely to recover once fears over the Turkish
economy recede.

 

South Africa has a narrower current account deficit and smaller stock of
short-term external debt than Turkey, and the economy is expected to grow
modestly this year after a torrid first quarter.

 

NKC Research said it expected the rand to trade in a range of 14.20 to 14.50
to the dollar on Wednesday.

 

Government bonds were little changed in early deals, with the yield on the
benchmark government bond maturing in 2026 up 1 basis point at 8.955
percent.

 

 

 

Gold Fields' CEO says South Deep lay-offs "last-gasp measure"

JOHANNESBURG (Reuters) - Gold Fields’ plan to potentially cut up to almost
1,600 jobs at its struggling South Deep mine in South Africa is a “last-gasp
measure”, Chief Executive Nick Holland said on Wednesday.

 

The company made the announcement on Tuesday, citing mounting losses and a
“consistent failure to meet mining and production targets” among the reasons
for the move that could see a third of its labour force trimmed.

 

“The choice is between this and serious risk to the future of South Deep and
its many shareholders,” Holland wrote in an article for the Business Day
newspaper.

 

“In the past 12 years, shareholders have received no return at all on their
initial investment of 22 billion rand, having seen only an outflow of
funds,” Holland said of South Deep.

 

The mine west of Johannesburg employs around 3,600 full-time workers and
1,900 contractors. In Tuesday’s announcement, the company said 1,100
permanent employees and 460 contractors could “potentially be impacted by
the proposed restructuring”.

 

 

South Deep is Gold Fields’ last South African asset and has been beset by
problems as the company has tried to mechanise the operation in the face of
challenging geology 3 kms (2 miles) below the surface.

 

 

Nigeria's GT Bank sees 10 pct loan growth this year

LAGOS (Reuters) - Nigeria’s Guaranty Trust Bank (GT Bank) plans to use some
of its cash deposits to help grow its loan book by 10 percent by the end of
the year after credit declined in the first half, it said on Tuesday.

 

The bank expects to boost loans to compensate for a drop in yields from
treasury investments. Chief Executive Segun Agbaje said the bank could earn
a yield of about 7-9 percent on loans compared with cash deposits in foreign
banks earning 2 percent.

 

The Nigerian government paid off about 840 billion naira ($2.75 billion)
worth of local treasury bills in the first half of 2018 instead of rolling
it over as it has done in the past, reducing the interest it paid to raise
domestic debt.

 

Agbaje said the bank would take $700 million to $800 million out of its
placements with foreign banks and deploy that into loans.

 

“We will still see some growth in our upstream (oil and gas) book,” Agbaje
said.

 

 

Loans fell 11 percent in the six months to June following a 9 percent
decline last year, the bank said on a call with analysts.

 

Agbaje said interest income declined as yields on treasury bills fell but
the bank would push fees and commissions to boost growth.

 

GT Bank posted an 8.4 percent rise in pre-tax profit to 109.6 billion naira
for the first half while interest income was 117.93 billion naira versus
129.54 billion a year ago.

 

Several lenders expect to grow loans this year as the Nigerian economy
recovers from a 2016 recession.

 

Agbaje said he wants to grow profit from African subsidiaries to around 20
percent by boosting the performance of its East African businesses. He said
units outside Nigeria accounted for about 12 percent of profit.

 

($1 = 305.0500 naira)

 

 

 

Nigeria's state-owned oil company considers refinery partnerships

ABUJA (Reuters) - Nigerian National Petroleum Corporation (NNPC) could allow
private investors to install two refineries on two of its sites, the
state-owned oil company said on Tuesday.

 

NNPC said in a statement that it was considering plans to establish a
100,000 barrel per day brownfield refinery at its Port-Harcourt and Warri
sites in collaboration with private sector investors.

 

 

Lazard drafting plan to bolster balance sheet of S.Africa's Eskom: sources

JOHANNESBURG (Reuters) - South African state-owned power firm Eskom has
hired financial adviser Lazard to draft a plan to shore up its balance sheet
as it struggles to emerge from a financial crisis, two banking sources told
Reuters.

 

Cash-strapped Eskom is critical to Africa’s most industrialised economy as
it supplies more than 90 percent of its power and is one of its most
indebted state firms.

 

President Cyril Ramaphosa appointed a new board at Eskom early this year in
one of his first interventions since becoming leader of the ruling African
National Congress (ANC).

 

He later secured the backing of senior ANC figures for a radical overhaul of
Eskom.

 

“Eskom hired Lazard to come up with options for the company’s turnaround
strategy,” one of the banking sources said. “This isn’t a straightforward
debt restructuring.”

 

The second source said Lazard had been hired several weeks ago to look at
ways to improve the company’s balance sheet but did not elaborate further.

 

Lazard, whose business includes advising companies on deals and debt
restructuring, did not reply to a Reuters request for comment.

 

An Eskom spokeswoman asked for questions to be submitted by email but did
not answer immediately.

 

Eskom said last month it was considering selling non-core assets and job
cuts after swinging to a full-year loss.

 

 

The company, which employs around 47,000 people, also said last month it was
not planning on restructuring its debt.

 

 

 

Ethiopia plans to build new airport in Oromia region -Fana

NAIROBI (Reuters) - Ethiopian Airlines plans to build a new airport with
annual capacity of 80 million passengers in Bishoftu, about 48km southeast
of the capital Addis Ababa, state-affiliated media said on Tuesday.

 

Fana Broadcasting Corporation quoted Ethiopian Airlines CEO Tewolde
Gebremariam saying that consultation was under way with the Oromia regional
state to acquire the land needed for the airport and an accompanying hotel.

 

 

 

Egypt's central bank expected to hold rates as it eyes inflation

CAIRO (Reuters) - Egypt’s central bank is expected to keep interest rates
unchanged at its next policy meeting and hold back on more rate cuts this
year until inflation steadies, a Reuters poll showed on Tuesday.

 

Twelve economists polled by Reuters said the Central Bank of Egypt (CBE) was
likely to maintain its deposit and lending rates at 16.75 and 17.75 percent
when it meets on Thursday.

 

They said the bank was unlikely to further cut rates after slashing them by
200 basis points earlier this year, until inflation cools following a jump
in June on the back of price hikes to energy and transportation.
[nL8N1U60UT]

 

“We expect the Central Bank of Egypt to opt for stable rates awaiting signs
that the headline monthly inflation numbers have stabilized,” said Mohamed
Abu Basha, head of macroeconomic analysis at EFG Hermes.

 

After rising in June, annual inflation dipped in July, with headline
inflation slowing to 13.5 percent from 14.4 percent in June and core
inflation, which strips out volatile items like food, falling to 8.54
percent from 10.9 percent, the first single-digit reading since April 2016.

 

Import-dependent Egypt has been battling inflation that ran as high as 35
percent last year after it floated its currency in late-2016, part of a
three-year $12 billion IMF loan programme that includes other price rising
measures such as cuts to electricity and fuel subsidies.

 

The central bank hiked its key interest rates by a total of 700 basis points
as prices climbed after the float but has eased them by 200 points since
February as inflation edged closer to single digits.

 

Still, economists said the bank would likely hold off on further cuts as it
eyed the impact of the latest energy subsidy cuts, with a view to further
easing before year-end.

 

“The Central Bank of Egypt would prefer seeing through the full impacts of
the recent subsidy cuts before shifting the gear on monetary policy,” said
head of research as Naeem Brokerage Allen Sandeep.

 

 

Turkey issues retaliatory tariffs on US imports

Turkey has sharply raised tariffs on US imports, including passenger cars,
alcohol and tobacco.

 

A decree signed by President Recep Tayyip Erdogan raised the tariffs on cars
to 120%, on alcoholic drinks to 140% and on leaf tobacco to 60%.

 

Tariffs were also increased on cosmetics, rice and coal. Turkey had
previously said it would boycott US electronic products.

 

It comes after Washington imposed punitive sanctions on Ankara.

 

Turkey's weakened currency, the lira, plunged by more than 20% in response
to those US sanctions.

 

Explaining the new tariffs, Turkish Vice-President Fuat Oktay said the rises
were ordered "within the framework of reciprocity in retaliation for the
conscious attacks on our economy by the US administration".

 

Inflation

The lira plunged to record lows on Monday, but has since clawed back some of
its losses.

 

Since January, the Turkish lira has lost more than 34% of its value against
the dollar, pushing up the price of everyday items.

 

The US doubled tariffs last week over Turkey's refusal to extradite a US
pastor who is imprisoned there.

 

President Erdogan said on Tuesday that Turkey was taking measures to
stabilise its economy and should not "give in to the enemy" by investing in
foreign currencies.

 

He has presided over soaring inflation and borrowing levels, but insists the
lira's plight is the result of a "campaign" led by foreign powers.

 

Is Turkey heading for an economic crisis?

Turkey's lira slump explained

Jailed pastor

President Erdogan has accused the US of trying to "bring Turkey to its knees
through threats over a pastor".

 

But the US insists Andrew Brunson, a long-time Turkish resident who ran the
tiny Izmir Resurrection Church, is "a victim of unfair and unjust
detention".

 

An evangelical from North Carolina, he has been held in Turkey for nearly
two years over alleged links to the outlawed Kurdistan Workers Party and the
Gulenist movement, which Turkey blames for a failed coup in 2016.

 

White House press secretary Sarah Sanders said the US had seen "no evidence
that Pastor Brunson has done anything wrong".

 

Mr Brunson has denied charges of espionage, but faces up to 35 years in jail
if found guilty.--BBC

 

 

Tesla directors: 'No formal proposal' to take company private

Tesla has not received a formal proposal from its founder Elon Musk to take
the company private, its board of directors has said.

 

The electric carmaker said it had created a special committee of three
directors to evaluate any such proposal.

 

Mr Musk announced on Twitter on 7 August that he was considering taking
Tesla private.

 

On Monday, he said financing had been discussed with Saudi Arabia.

 

"The special committee has not yet received a formal proposal from Mr Musk
regarding any 'going private transaction' nor has it reached any conclusion
as to the advisability or feasibility of such a transaction," the company
said.

 

Board members Brad Buss, Robyn Denholm and Linda Johnson Rice will sit on
the committee.

 

Elon Musk floats plans to take carmaker private

Tesla board says there are buyout talks with Elon Musk

Tesla's Elon Musk in the hot seat, again

The special committee has retained lawyers - Latham & Watkins - in addition
to a legal team used by the company.

 

Mr Musk's tweet earlier this month had said "funding secured", raising
questions about where the financing for any deal might come from.

 

On Monday, he attempted to justify his position saying that he had met the
Saudi sovereign wealth fund after it bought a 5% stake in the company.

 

He left that meeting on 31 July "with no question that a deal ... could be
closed - it was just matter of getting the process moving".

 

The board had confirmed earlier this month that it had "met several times
over the last week" to discuss going private.

 

Mr Musk has said the offer is valued at $420 (£326) per share, which values
the business at more than $70bn.

 

However, he said he does not need to raise that much money as he only
intends to buy out investors who did not want to retain their holdings if
the company did go private.--BBC

 

 

Tinder's founders and former boss sue dating app owners

Tinder's parent companies have been accused of undervaluing the dating app,
cheating executives out of billions of dollars worth of stock options.

 

A group of 10 current and former top staff - including the firm's
co-founders and former boss - made the claim in a lawsuit filed in New York.

 

They are seeking at least $2bn (£1.57bn) in damages from the parent firms
IAC and subsidiary, Match Group.

 

IAC and Match said they would fight the suit, calling the claims
"meritless".

 

The two firms said the valuation occurred under a "rigorous,
contractually-defined" process.

 

The plaintiffs "did not like the outcome," they said, adding that Match has
paid out more than $1bn in equity compensation to Tinder's co-founders and
employees.

 

"We look forward to defending our position in court."

 

Tinder launched in 2012 on the back of the explosion in smartphone use. Just
two years later it was registering more than a billion "swipes" a day.

 

The app is one of several brands that falls under the Match Group umbrella.

 

Media giant IAC owns the majority of Match, which it spun out as an
independent, publicly-traded company in 2015.

 

The lawsuit concerns share options granted to certain Tinder staff in 2014,
which gave them the right to buy Tinder shares at pre-set times, starting in
2017.

 

'False picture'

The employees, who include three co-founders and several current executives,
say IAC/Match created a "false picture" of Tinder's financial condition and
prospects in order to reduce the value of stock options awarded.

 

For example, during the valuation, IAC/Match estimated that Tinder would
bring in $454m in revenue in 2018, according to the filing.

 

This month, Match told investors Tinder's 2018 revenue would be about $800m.

 

"When it came time to pay the Tinder employees what they rightfully earned,
the defendants lied, bullied, and violated their contractual duties,
stealing billions of dollars," the attorney for the plaintiffs, Orin Snyder
of Gibson, Dunn & Crutcher, said in a statement.

 

The employees also accuse IAC/Match of overlooking sexual misconduct by a
Match Group executive.--BBC

 

 

 

South Korea to ban some BMW vehicles over engine fires

The South Korean government has said it will ban about 20,000 BMWs from its
streets after a spate of the vehicles catching fire.

 

The ban will apply to cars which have not yet been sent to BMW for safety
checks under a voluntary recall.

 

Nearly 30 engines caught on fire in 2018 mainly in the BMW's 520d sedan
models.

 

BMW has already come under scrutiny this year, recalling thousands of cars
in the UK over safety issues.

 

"The ministry will ask mayors to order owners of unchecked BMW vehicles to
have their cars' safety checked or to stop driving them," Transport Minister
Kim Hyun-mee said on Tuesday, according to the Korea Times.

 

Local governments have the authority to issues such orders under South
Korean law.

 

"The order will take effect as soon as the owners receive letters from
mayors," said Mr Kim.

 

BMW officials in South Korea apologised last week for the fires.

 

They have put the problem down to defects in the exhaust gas recirculation
system, according to Reuters. The South Korean government is also
investigating the cause.

 

The German car company has already recalled more than 300,000 vehicles this
year, extending a UK recall after the BBC's Watchdog programme found the
vehicles could cut out completely while being driven.

 

Last year, it recalled more than 36,000 petrol cars due to safety issues
after a fatal crash.

 

The BMW had suffered an electrical fault, causing its brake lights to fail
and resulting in the vehicle stalling and crashing into a tree.

 

BMW also recalled 500,000 cars in the US in 2013, as well as in Australia,
Canada and South Africa.--bbc

 

 

 

Amazon's one-day delivery ad banned as 'misleading'

Amazon's one-day delivery ad for Prime members has been banned as
misleading.

 

The UK advertising regulator said it had received 280 complaints, mostly
from Prime customers who reported not receiving their packages within a day.

 

It said the ad "must not appear again in its current form" and Amazon must
make clear that "a significant proportion" of Prime items were not available
for next-day delivery.

 

Amazon said the "overwhelming majority" of one-day orders arrived on time.

 

It said the "period of extreme weather" last year meant "a small proportion
of orders" missed their delivery deadline.

 

Amazon tax bill falls despite profits leap

How Jeff Bezos took Amazon to the top

Amazon websites crash on Prime Day

Amazon Prime Day deals 'not what they seem'

The firm's top service, Prime, offers next-day deliveries for £7.99 a month,
or £79-a-year.

 

The Advertising Standards Authority said the adverts for Amazon Prime on its
website in December meant customers would assume "one-day delivery" applied
to all Prime-labelled items - and that these deliveries would arrive the day
after the order was placed.

 

However, elsewhere on its website Amazon explained that delivery time for
its one-day service was "one business day after dispatch", and what time an
order was placed would determine whether an item was dispatched on the same
day.

 

The ASA said it was unlikely customers would find this information, before
signing up for Amazon Prime.

 

"Because consumers were likely to understand that, so long as they did not
order too late or for Sunday delivery, all Prime-labelled items would be
available for delivery the next day with the One-Day Delivery option, when a
significant proportion of Prime-labelled items were not available for
delivery by the subsequent day with One-Day Delivery, we concluded that the
ad was misleading," the ASA said in its ruling.

 

Amazon said the "vast majority" of the complaints followed media coverage of
an initial handful of complaints.

 

A spokeswoman said: "Amazon Prime offers fantastic benefits to members
including One-Day delivery on millions of eligible items at no extra cost.

 

"The expected delivery date is shown before an order is placed and
throughout the shopping journey and we work relentlessly to meet this date.
"

 

Citizens Advice said online retailers should provide easy access to
compensation if they fail to deliver items on time.

 

The consumer group said problems with late deliveries were not unique to
Amazon.

 

Chief executive Gillian Guy said: "We've found 40% of people who used a
premium delivery service received their parcel later than expected.

 

"It's more difficult for consumers to work out what they're owed when their
parcels don't arrive on time if they've paid for a service like Amazon
Prime, compared to when they pay for one-off deliveries.--BBC

 

 

 

US pushes back on foreign takeover deals

The US has passed a new law that strengthens the government's power to
review - and potentially block - business deals involving foreign firms.

 

US President Donald Trump signed the bill, which is part of a broader
military spending measure, on Monday.

 

The US worries Chinese firms use investments and acquisitions to gain access
to new technology - a concern also behind the US-led trade war.

 

China was critical of the US defence act.

 

The law was supported by both Republicans and Democrats in Congress, which
approved the measure earlier this year.

 

It comes as other countries, including the UK, consider ways to toughen
their scrutiny of foreign deals with an eye to China.

 

UK ramps up powers to block foreign takeover deals

Chinese takeover of German firm Leifeld collapses

Details of the bill

The new law expands the type of deals subject to potential review by the
Committee on Foreign Investment in the US (CFIUS), which vets foreign
investments to see if they pose a risk to national security.

 

For example, it directs the committee to consider how potential transactions
might affect personal data and cyber-security and whether an investment
gives foreigners access to "material" non-public information.

 

It also strengthens export controls, allowing the US to review overseas
deals, such as joint ventures.

 

The new law does not specifically name China.

 

However, it directs CFIUS officials to consider whether the transaction
involves a "country of special concern that has a demonstrated or declared
strategic goal of acquiring a type of critical technology or critical
infrastructure".

 

China criticised the measures, saying it would comprehensively assess them.

 

"The US side should objectively and fairly treat Chinese investors, and
avoid CFIUS becoming an obstacle to investment cooperation between Chinese
and US firms," China's Commerce Ministry said, according to Reuters.

 

The broader military spending legislation also says "long-term strategic
competition with China" is a principal priority for the US.

 

US Treasury Secretary Steven Mnuchin said he welcomed the new law.

 

Decline in investment

Even without the new law, rising US scrutiny of Chinese transactions appears
to have dampened investor appetite.

 

Chinese firms completed deals worth $1.8bn (£1.4bn) in the first half of
2018 - the lowest level in seven years and down more than 90% from the same
period in 2017, according to the Rhodium Group, a US research firm.

 

The decline followed tighter Chinese controls on overseas activity, which
contributed to a global contraction in foreign investment last year.

 

Rhodium found US regulators blocked about $2bn in Chinese deals in the first
six months of 2018.

 

Those included the sale of a US money transfer firm to Ant Financial,
Alibaba's digital payments arm, and the acquisition of Skybridge Capital by
HNA.

 

US blocks sale of Moneygram to China's Ant Financial

Overall, foreign investment in the US fell 32% from 2016 to 2017, when it
totalled about $260bn, according to the US Commerce Department.--BBC

 

 

Venezuela crisis: Maduro to curb fuel subsidies

Venezuela's president has said its subsidised fuel prices should rise, to
stop smugglers cheating the country out of billions of dollars.

 

"Gasoline must be sold at an international price to stop smuggling to
Colombia and the Caribbean," Nicolás Maduro said in a televised address.

 

Like many oil producing nations, Venezuela offers its citizens heavily
subsidised petrol.

 

A fuel price rise in 1989 caused deadly riots in the capital, Caracas.

 

What's behind the move?

Venezuela's economy is in freefall, with the International Monetary Fund
predicting inflation rates will reach a million percent this year - but the
price of fuel has barely changed.

 

Venezuela crisis: How did we get here?

Venezuela deploys soldiers to markets

Profile: Venezuela's controversial leader Nicolás Maduro

The price of a litre of petrol in Venezuela currently stands at 1 bolivar.
On the black market, Venezuelans pay more than 4m bolivares for one US
dollar.

 

That means that for the equivalent of one dollar, Venezuelans can fill the
tank of a medium-sized car about 720 times.

 

 

Smuggling the subsidised fuel from Venezuela into neighbouring countries,
where prices are much higher, is big business.

 

Venezuela loses $18bn to fuel smuggling annually, according to government
figures. President Maduro says adapting Venezuelan fuel prices to
international levels will stamp out smuggling.

 

The move is part of a wider plan to increase government revenue in the face
of falling oil production, Venezuela's main export income.

 

Will all Venezuelans have to pay full whack now?

No, according to President Maduro "only those individuals who don't answer
the call to register will have to pay fuel at international prices".

 

The president said that all Venezuelans who hold the "Fatherland ID", a
government-issued identity card introduced by his administration in 2017,
will continue to receive "direct subsidies" for "about two years".

 

However, many Venezuelans opposed to Mr Maduro's government have refused to
get the ID cards, alleging they are used by officials to keep tabs on them.

 

The price rise is therefore expected to hit opponents of President Maduro in
greater numbers than those who support him.

 

President Maduro said he would announce further details of how the new
subsidies scheme would work in the coming days. It is expected to come into
effect on 20 August.

 

What's the 'Fatherland ID'?

President Maduro introduced the new ID card in January 2017 arguing it would
serve to make his socialist government's social programmes more effective.

 

Getting the ID is free and voluntary for anyone over 15 but those who apply
have to answer a series of questions about their socio-economic status and
what state benefits, if any, they are receiving.

 

According to government figures, by January 2018, 16.5 million Venezuelans
out of 31.5 million citizens had applied for a "Fatherland ID".

 

Only those who are in possession of the ID can apply to receive subsidised
food parcels and other state benefits.

 

Government critics opposed the introduction of the Fatherland ID from the
start, arguing that there was no need for it as Venezuelans already had
government-issued ID cards.

 

They said that it was a way to restrict the hand-out of state benefits to
government supporters. They also fear that the government uses the
Fatherland ID to collect information on citizens.

 

Will the new measure end smuggling?

Unlikely, as smugglers who hold a Fatherland ID or apply for one will still
be able to buy fuel at rock bottom prices and sell it at a massive profit in
Colombia and other countries.

 

Some opposition politicians fear that the measure will be used as a way to
introduce petrol rationing through the back door by limiting the amount each
individual can buy on his Fatherland ID. But so far no limits on the amount
of petrol people can buy have been announced.

 

Why are fuel price rises so controversial?

Venezuelans are very car-dependant. It is not unusual for families to have
multiple cars and for them to drive long distances to work.

 

For those who cannot afford cars getting around has become increasingly
difficult. Public transport is poor and has worsened in recent years as a
lack of maintenance has led to a shortage of public buses.

 

Venezuelans complain about having to queue to get on trucks previously used
to transport livestock. Many spend hours commuting to and from work.

 

A rise in the price of fuel would not just hit those who drive their own
cars as companies running bus routes would likely pass on the price hike to
their customers.

 

There have been very few fuel price rises since 1989 when such a rise - amid
other austerity measures - sparked massive riots in Caracas and its
environs.

 

The president at the time sent troops into the streets to quell the riots
and hundreds of people were killed.

 

The incident, known as the Caracazo, has haunted Venezuelans ever since.

 

What's at the root of Venezuela's economic crisis?

Venezuela is rich in oil. It has the largest proven oil reserves in the
world. But it is arguably precisely this wealth that is also at the root of
many of its economic problems.

 

Venezuela's oil revenues account for about 95% of its export earnings. This
means that when oil prices were high, a lot of money was flowing into the
coffers of the Venezuelan government.

 

When socialist President Hugo Chávez was in power, from February 1999 until
his death in March 2013, he used some of that money to finance generous
social programmes to reduce inequality and poverty.

 

But when oil prices dropped sharply in 2014, the government was suddenly
faced with a gaping hole in its finances and had to cut back on some of its
most popular programmes.--BBC

 

 

 

Vienna ranked as most liveable city in the world

The Austrian capital, Vienna, has beaten Australia's Melbourne to be named
the world's most liveable city.

 

It's the first time a European city has topped the rankings of the Economist
Intelligence Unit (EIU) annual survey.

 

The worldwide league table ranks 140 cities on a range of factors, including
political and social stability, crime, education and access to healthcare.

 

In the survey, Manchester saw the biggest improvement of any European city,
rising by 16 places to rank 35th.

 

Manchester's rise puts it ahead of London in the rankings by 13 places, the
widest gap between the two cities since the survey began two decades ago.

 

The EIU said Manchester's jump in the rankings was due to an improved
security score.

 

'Resilience'

The survey was criticised last year for demoting Manchester after the
Manchester Arena attack which killed 22 victims.

 

This year, survey editor Roxana Slavcheva said Manchester had "shown
resilience in the city's recovery from a recent, high-profile terrorist
attack, which previously shook up stability".

 

Ms Slavcheva said security had also improved in "several western European
cities" and Vienna's top place in the rankings reflected "a relative return
to stability across much of Europe".

 

It was also praised for its lack of petty crime, described as one of the
safest cities in Europe.

 

According to the survey, nearly half of the cities have seen their
liveability ranking improve over the past year.

 

Melbourne, which was ranked second in this year's global rankings, had
previously come top for seven years running.

 

Two other Australian cities also made this year's top ten: Sydney and
Adelaide.

 

At the other end of the scale, war-torn Damascus in Syria was ranked the
least liveable city, closely followed by Dhaka in Bangladesh and Lagos in
Nigeria.

 

The EIU said that crime, civil unrest, terrorism or war played a "strong
role" in the ten-lowest scoring cities.

 

The ten most liveable cities in 2018

1. Vienna, Austria

 

2. Melbourne, Australia

 

3. Osaka, Japan

 

4. Calgary, Canada

 

5. Sydney, Australia

 

6. Vancouver, Canada

 

7. Tokyo, Japan

 

8. Toronto, Canada

 

9. Copenhagen, Denmark

 

10. Adelaide, Australia

 

The ten least liveable cities 2018

1. Damascus, Syria

 

2. Dhaka, Bangladesh

 

3. Lagos, Nigeria

 

4. Karachi, Pakistan

 

5. Port Moresby, Papua New Guinea

 

6. Harare, Zimbabwe

 

7. Tripoli, Libya

 

8. Douala, Cameroon

 

9. Algiers, Algeria

 

10. Dakar, Senegal--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.

 


 

 


(c) 2018 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

Invest Wisely!

Bulls n Bears 

 

Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180815/c988291f/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180815/c988291f/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image008.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180815/c988291f/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image009.jpg
Type: image/jpeg
Size: 8312 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180815/c988291f/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image010.jpg
Type: image/jpeg
Size: 29391 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180815/c988291f/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image011.jpg
Type: image/jpeg
Size: 29401 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180815/c988291f/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image012.jpg
Type: image/jpeg
Size: 29420 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180815/c988291f/attachment-0011.jpg>