Major International Business Headlines Brief::: 21 August 2018

Tue Aug 21 10:00:50 CAT 2018

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Major International Business Headlines Brief::: 21 August 2018

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*  South Africa's Harmony Gold reports profit drop, mining deaths spike

*  South Africa's Shoprite posts surprise drop in annual profit

*  South Africa's rand climbs as dollar hit by Trump Fed comments

*  Ethiopian Airlines, Zambia to relaunch national airline at cost of $30
million

*  China sells diesel to South Africa as refiners seek new export markets

*  AngloGold swings back into H1 profit, Obuasi mine reboot on track

*  South Africa's Sasol FY profit drops as power outages hit production

*  Impala Platinum flags wider full-year loss

*  Transnet to clamp down on unauthorised spending

*  Trump accuses China of 'manipulating' its currency

*  John McDonnell calls Lehman Brothers reunion 'sickening'

*  Tesla hit by doubts over Elon Musk's delisting plan

*  UK can be '21st Century exporting superpower', says Liam Fox

*  Fashion website Farfetch plans US share float

*  Venezuelans confused as Maduro's economic plan starts

*  Apple 'pulls gambling apps from China App Store'

 <mailto:info at bulls.co.zw> 

South Africa's Harmony Gold reports profit drop, mining deaths spike

JOHANNESBURG (Reuters) - South Africa’s Harmony Gold reported a 43 percent
fall in annual earnings on Tuesday, hurt by impairments and a loss relating
to debt denominated in U.S. dollars, and had a worrying setback in its
safety record.

The gold industry in South Africa, which has produced a third of the bullion
mined in history and is home to the world’s deepest mines, has been squeezed
for years by depressed prices and soaring labour, power and operational
costs.

The challenges faced by the industry, which is mostly labour-intensive and
non-mechanised, were underscored by a spike in the number of Harmony workers
killed during the financial year, to 13 from five in the previous year.

Mine safety is high on the radar screen of investors, the government and
unions.

Headline earnings per share - the main profit measure in South Africa that
strips out certain one-off items - came in at 171 cents, in line with what
it had previously flagged to the market, from 298 cents a year earlier.

The net loss was almost 4.5 billion rand ($307.5 million)compared with a
slim profit last year of 362 million rand.

The company maintains hedges and its rand gold hedges realised gains of
almost 1.2 billion rand.

Harmony produced 1.22 million ounces of gold for the year and said its
target for the 2019 financial year was 1.45 million ounces. One of its focus
areas for the next financial year will be obtaining permits for its
Wafi-Golpu project in Papua New Guinea.

($1 = 14.6363 rand)

 <mailto:info at bulls.co.zw> 

South Africa's Shoprite posts surprise drop in annual profit

JOHANNESBURG (Reuters) - South Africa’s Shoprite reported a surprise 3.8
percent fall in annual earnings on Tuesday, citing a currency devaluation in
Angola and lacklustre trading in other markets abroad.

Africa’s biggest grocery store chain reported diluted headline earnings per
share (EPS) of 968.7 cents in the year ended July versus a 1,090 cents
estimate in a poll of 10 analysts by Thomson Reuters’ I/B/E/S.

Analysts had expected an increase of 8.2 percent.

Headline EPS, the most widely watched profit gauge in South Africa, strips
out certain one-off items.

Sales of the Cape Town-based company rose 3.1 percent to 145.3 billion rand
($9.9 billion).

Shoprite, which trades in 14 countries in the rest of Africa and Indian
Ocean islands, said its local division reported turnover growth of 5.7
percent, while its non-South Africa operations recorded a decline in sales
of 7 percent.

The company said its Angolan business was hit by a chronic shortage of
foreign currency and a devaluation, adding that the Angolan Kwanza had lost
50 percent of its value against the U.S. dollar since December 2017.

It said other markets outside South Africa “continued to experience
lacklustre trading conditions and foreign exchange fluctuations.”

($1 = 14.6363 rand)

South Africa's rand climbs as dollar hit by Trump Fed comments

JOHANNESBURG (Reuters) - South Africa’s rand firmed more than one percent in
early trade on Tuesday, matching gains by its emerging market peers as
criticism of Federal Reserve rate hikes by U.S. President Donald Trump hurt
the dollar and revived demand for some risk assets.

At 0630 GMT the rand was 1.1 percent firmer at 14.3700 per dollar, its
firmest since Thursday, in what traders said was the beginning of a
consolidation pattern with momentum indicators showing the unit was
oversold.

The rand’s 3-day Relative Strength Index (RSI), used to identify oversold or
overbought signals by comparing the current price to previous periods,
dipped below the 70-mark overnight indicating a reversal of the recent bear
trend.

The rand crashed to a two-year low last week as the financial crisis in
Turkey rattled sentiment towards emerging markets broadly, adding to
concerns about the impact of the U.S.-China trade spat on global economic
growth.

But with Turkish markets closed for a religious holiday and anticipated
talks between the United States and China seen lowering the temperature of
the dispute, Trump’s central bank comments were the main catalyst.

In an interview with Reuters Trump said he was “not thrilled” with Federal
Reserve Chairman Jerome Powell for raising interest rates, causing the
greenback to slide to its lowest level since Aug. 9.

Bonds also firmed, with the yield on the benchmark 2026 paper down 3.5 basis
points to 9 percent.

Stocks were set to open a touch lower at 0700 GMT, with the Johannesburg
Stock Exchange’s Top-40 futures index down 0.1 percent.

Ethiopian Airlines, Zambia to relaunch national airline at cost of $30
million

LUSAKA (Reuters) - Ethiopian Airlines has signed a shareholding agreement
with Zambia’s main develoment agency to relaunch the southern African
country’s flag carrier at an initial cost of $30 million.

The Ethiopian state-owned carrier has outpaced regional competitors Kenya
Airways and South African Airways to become Africa’s largest airline by
revenue and profit, and has been buying shares in other African airlines to
gain a competitive advantage over rivals such as those in the Gulf.

Under the plan, Zambia Airways, being revived more than two decades after it
was shut down, would operate 12 planes by 2028, Ethiopian Airlines said in a
joint statement with Zambia’s state-owned Industrial Development Corporation
(IDC).

Ethiopian Airlines will own 45 percent of the revamped Zambian airline, and
Zambia 55 percent, the statement said.

“The initial investment as we start up the national carrier will be $30
million. Obviously, as we operate the airline, we will facilitate the
financing necessary to support its growth,” it said.

Ethiopian Airlines said in January it had signed an agreement with the
Zambian government to relaunch Zambia Airways.

Zambia Airways will launch local and regional routes this year while
intercontinental routes, including Europe, the Middle East and Asia, will be
added in the near future, it said.

State-owned Zambia Airways went into liquidation in 1994. The
privately-owned Zambian Airways then emerged as the country’s main carrier
with flights to other major hubs in southern Africa, but it suspended
operations in 2009.

Ethiopian Airlines operates and manages Malawi Airlines through a deal
signed in 2013.

In May, the airline said it was in talks with Chad, Djibouti, Equatorial
Guinea and Guinea to set up carriers through joint ventures. It also aimed
to create a new airline in Mozambique that it will fully own.

Ethiopia said in June it would open Ethiopian Airlines and its state-run
telecoms monopoly to private domestic and foreign investment in a major
policy shift that will loosen the state’s grip on the economy.

China sells diesel to South Africa as refiners seek new export markets

BEIJING (Reuters) - State-run oil company Sinopec is selling diesel as far
afield as South Africa as China’s refiners seek homes for their surplus fuel
in the latest sign of troubles in the domestic refining business.

Sinopec said on Monday it shipped its first 30,000 tonnes of diesel from its
Shanghai refinery heading for South Africa.

This cargo and another September shipment marked the first batch to South
Africa in two years, according to Thomson Reuters Eikon shipping data. Such
shipments have also been extremely rare in the past five years, according to
the data.

“China’s four oil majors are facing a glut overhang in domestic market and
the companies are fully aware of the headwinds ahead,” a product trader from
a state-owned oil company said.

“Chinese companies are looking to expand sales to emerging market countries
beyond South East Asia where margins have weakened amid competition,” he
said referring to India and South American countries.

He declined to be named to due company policy.

Sinopec’s rival CNPC also sold its first ever gasoline to Americas in April.

China exported record volumes of diesel in May, with the total almost
hitting 2.4 million tonnes. Shipments have remained firm since, as domestic
fuel demand growth stagnates.

Vehicle sales, a barometer of gasoline demand, were down 4 percent in July.
An environmental crackdown has also hurt diesel sales from trucks in the
past two years.

“Refinery runs were growing fast but domestic consumption did not catch up.
With two more new refineries expected to start soon, the glut is only going
to get worse,” Liu Mengkai, fuel products analysts with consultancy Sublime
China said.

“Chinese refiners are vying for a bigger share of fuel market in countries
like Australia where consumption is still good,” Liu said.

Eikon trade data showed that China’s total fuel exports to Australia hit 11
cargoes or 344,800 tonnes in July, a record high.

In Africa, Sinopec is seeking to buy Chevron’s assets in South Africa and
Botswana, giving Asia’s top refiner its first major African refinery as well
as petrol stations and convenience stores.

China’s refinery runs rose in June as state-controlled oil majors boosted
output of fuel products, data showed.

AngloGold swings back into H1 profit, Obuasi mine reboot on track

JOHANNESBURG (Reuters) - AngloGold Ashanti swung back into a first-half
profit on the back of higher production and lower-than-expected retrenchment
costs, Africa’s top gold producer said on Monday.

The firm posted headline earnings of $99 million for January-June, in line
with figures it had previously flagged, compared with a headline loss for
the same period last year of $89 million.

The turnaround in performance was also due to the absence of one-off,
non-cash settlement costs for silicosis class action claims which hit its
earnings last year.

In Ghana, AngloGold said the redevelopment of its historic Obuasi asset was
on track with the issuing of environmental permits and the ratification by
the Ghanaian parliament of the fiscal and regulatory agreements to reboot
the mine.

“The ratification of investment agreements by Ghana’s parliament in June
allowed the redevelopment of the high-grade Obuasi Gold Mine to commence in
earnest,” the company said.

AngloGold said in February it would spend up to $500 million to mechanise
its Obuasi mine in Ghana.

The company said last year Ghana’s military had cleared Obuasi mine of
illegal miners, who had invaded the site and numbered up to 12,000 at one,
paving the way for the company to revive it.

AngloGold’s outgoing Chief Executive Srinivasan Venkatakrishnan said on a
conference call that concluding the Obuasi agreements were his “most
satisfying” accomplishment as he prepares to step down at the end of August.

“If that hadn’t been concluded, I would have left with quite a big regret,”
he said.

South Africa's Sasol FY profit drops as power outages hit production

JOHANNESBURG (Reuters) - South African petrochemicals group Sasol said on
Monday full-year profit dropped 6 percent, pulled down by interruptions to
production, a stronger rand and employee share-based payment expenses.

Cooling towers of South African petro-chemical company Sasol's synthetic
fuel plant in Secunda, north of Johannesburg, are seen in this picture taken
March 1,2016.REUTERS/Siphiwe Sibeko

Core headline earnings per share (HEPS) for the year ended June 30 fell to
36.03 rand ($2.46) compared with 38.47 rand a year earlier. HEPS is the main
profit gauge in South Africa, which strips out certain one-off items.

The firm said its financials were affected by unplanned electricity supply
interruptions from state-owned power utility Eskom and two internal outages
at its Secunda Synfuels and Natref operations that resulted in lower
production.

A stronger average rand-to-dollar exchange rate compared with a year earlier
also hurt results, Sasol said, while expressing optimism about operations in
the coming year.

“2019 will be a defining year for Sasol with the start-up of the LCCP in the
US, a catalyst for transforming our earnings profile,” Chief Executive
Officer Stephen Cornell said in a statement.

The Lake Charles Chemicals project (LCCP) ethane cracker in North America,
which has been hit by delays and rising costs, is about 88 percent complete
and is expected to cost $11.13 billion, the firm said.

Sasol, the world’s top manufacturer of motor fuel from coal, said earnings
before interest, tax, depreciation and amortisation (EBITDA) rose 10 percent
to 52 billion rand ($3.55 billion).

The difference between core headline earnings and EBITDA was due to
depreciation costs of 16 billion rand and employee share-based payment
expenses of 1.5 billion rand, Sasol said.

The company declared a final dividend of 7.90 rand per share, up 1.3 percent
year-over-year. That brings its total dividend declared for the period to
12.90 rand per share, compared with 12.60 rand per share a year earlier.

($1 = 14.6363 rand)

Impala Platinum flags wider full-year loss

JOHANNESBURG (Reuters) - South African producer Impala Platinum (Implats)
said on Monday that it expects its full-year loss to widen due to
impairments relating to its Rustenburg assets.

The company flagged a headline loss per share for the year ending 30 June of
between 162 and 186 cents per share, compared with a loss of 137 cents per
share in 2017.

Headline earnings - South Africa’s most widely watched profit gauge - strip
out certain one-off items.

“The difference between basic and headline losses is primarily due to the
impairment of property, plant and equipment as a consequence of the outcome
of the Impala Rustenburg strategic review,” Implats said in a statement.

Implats announced earlier this month that it will slash about a third of its
workforce over two years in one of the biggest rounds of job cuts by one
mining company in living memory in South Africa, with the focus on
Rustenburg.

The company is due to report full-year results next month.

($1 = 14.6363 rand)

Transnet to clamp down on unauthorised spending

JOHANNESBURG (Reuters) - South Africa’s Transnet said on Monday it would
clamp down on unauthorised expenses after uncovering problems with
procurement at the state logistics firm.

Transnet, which operates nearly three-quarters of the African rail network,
the bulk of which is in South Africa, has been investigating allegations of
corruption in the procurement of 1,064 diesel and electric locomotives.

The firm said during its results presentation that the year had been
“characterised by a number of serious procurement related governance
challenges which has impacted on the company’s reputation and the ability to
attract investment.”

Transnet said its board and management were developing an action plan to
prevent irregular expenditure, which is referred to by Treasury as
expenditure other than unauthorised expenditure, incurred in contravention
of existing rules.

The firm reported full-year revenue ending March 2018 up 11.3 percent to
72.9 billion rand ($5 billion), boosted by an increase in volumes of export
coal and container volumes.

Coal export volumes it transported by rail for the financial year rose 4.3
percent to 77 million tonnes, the firm said.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose
18 percent to 32.5 billion rand from 27.6 billion rand in the previous
reporting period.

($1 = 14.6363 rand)

Trump accuses China of 'manipulating' its currency

US President Donald Trump has again accused China of manipulating its
currency to combat US tariffs.

The accusation, made in an interview with Reuters, resembles claims Mr Trump
made during his 2016 campaign and repeated last month.

The two countries are preparing to meet in Washington this week to discuss
their trade fight.

Many doubt that the talks, which involve lower-level officials, will be
successful in defusing the tensions.

Mr Trump told Reuters he did not expect much from the meeting, which follows
failed negotiations this spring.

He also said he had "no time-frame" in mind to bring the clash between the
economic giants to a close.

Analysts have already voiced fears that the trade war between the US and
China could become a currency war as well.

Trade war in progress

In July, the two countries imposed a first round of tit-for-tat tariffs
affecting trade worth $34bn (£26.5bn).

The US plans to impose import duties on a further $16bn in Chinese trade on
23 August. China has promised to retaliate in kind.

The administration is also preparing additional tariffs on $200bn worth of
Chinese goods, which are the subject of hearings in Washington this week.

This month, the administration announced that Mr Trump had asked his staff
to consider taxes of 25%, instead of the 10% initially proposed.

Will Trump's tariffs stop Chinese espionage?

How the US is waging its trade war with China

At the time, officials disputed the notion that the higher tax was a
response to the decline in the value of the yuan, but the president's
comments to Reuters undermine that claim.

"I think China's manipulating their currency, absolutely," Mr Trump told
Reuters.

During his campaign for president, Mr Trump also called China a currency
manipulator but last year, after assuming office, he retracted those
comments.

What is currency manipulation?

Mr Trump has not only accused China, but also the EU of currency
manipulation.

A country could intentionally undervalue its currency by selling its own
currency to drive down its value, making its exports cheaper and more
competitive.

Currency manipulation is difficult to prove. Some analysts argue that China
has acted to weaken its currency, largely by purchasing US government debt,
in order to make its exports cheaper for American consumers.

But others take a different view. In a column this week for the London-based
think tank, former US Treasury official Mark Sobel says Mr Trump is far off
the mark, suggesting the depreciation of the Chinese yuan is down to the
strength of the US dollar, rather than Chinese market manipulation.

In April, the US Treasury department issued a report saying no US trading
partner was manipulating its currency.

Blame at home

China's currency has shed almost 10% of its value against the dollar since
the trade dispute started to intensify in April - a decline that has blunted
the effect of the tariffs by making China's goods cheaper.

Mr Trump said he held the US Federal Reserve responsible for some of the
currency shifts, noting that it has acted more quickly than other central
banks to remove stimulus policies.

"We're negotiating very powerfully and strongly with other nations. We're
going to win. But during this period of time, I should be given some help by
the Fed. The other countries are accommodated," he told Reuters.

In addition to China, he said, "I think the euro is being manipulated also."

'Not thrilled'

President Trump also again criticised the Federal Reserve for raising
interest rates.

The US central bank, which is led by Mr Trump's appointee Jerome Powell, has
raised interest rates twice this year and is expected to do so again.

The Fed has said the economy is strong enough to handle higher rates, which
are intended to prevent uncontrolled price inflation. Analysts also link the
rates to a stronger dollar.

Mr Trump is worried that the higher cost of borrowing will slow the economy.

"I'm not thrilled with his raising of interest rates, no. I'm not thrilled,"
he said to Reuters, repeating a criticism which he has made before.--BBC

John McDonnell calls Lehman Brothers reunion 'sickening'

A reunion to mark the 10th anniversary of the collapse of Lehman Brothers
has been called "sickening" by the shadow chancellor.

The failure of the US investment bank in 2008 was a crucial moment in the
financial crisis.

Mr McDonnell said those who had suffered a "decade of austerity" would be
"absolutely disgusted" by the event.

Financial News, which first reported the party plans, said about 200 former
staff had been invited.

The trade publication said the gathering planned for 15 September - the date
of Lehman's collapse a decade ago - would involve cocktails and canapes.

How did the 2008 financial crisis affect you?

'That was chilling': Ten years since the financial crash

Lehman's failure heralded the start of a global crisis, with governments
around the world scrambling to avert a possible financial meltdown.

Its collapse sent shockwaves through financial markets, with then chancellor
Alistair Darling saying the bank's collapse "allowed panic to get into the
system".

"It set in train events that brought our banks and the American banks within
hours of collapse just three weeks later," he said later..

"When Lehman went down, people started circling other banks as well, to look
for the next one to go after. The situation got progressively worse."

The bank employed about 5,000 people in the UK and when it went bankrupt, an
estimated 25,000 people globally lost their jobs.

'Highly inappropriate'

An email invite to the Lehman reunion, seen by Financial News, is addressed
to "Lehman Brothers & Sisters" and reads: "It's hard to believe it's been 10
years since the last of our Lehman days!... One of the best things about
Lehman was the people. What better way to celebrate the tenth anniversary
than getting everyone from former MDs to former analysts back together
again!"

Mr McDonnell said the party plans were "unacceptable and highly
inappropriate".

"This is absolutely sickening after a decade of people suffering austerity.
It's particularly disgraceful in the context of all the people who lost
their jobs and homes to pay for bailing out these bankers who caused the
financial crash," he added.

Financial News said those organising the event were aware it could be seen
as controversial, and had tried to keep the details of the event and its
location secret.--BBC

Tesla hit by doubts over Elon Musk's delisting plan

Tesla shares remained volatile on Monday amid doubts about Elon Musk's
ability to take the company private.

Shares in the electric car maker started trade down more than 4%, but
recovered to close in positive territory.

The shares have dropped by about a fifth since Mr Musk revealed his proposal
in a tweet on 7 August.

Some analysts predict Tesla has further to fall: JPMorgan Chase has cut its
price target from $308 to $195.

The bank's analysts cited doubts about Mr Musk's claims to have secured
funding for his plan to take the firm private.

"Tesla does appear to be exploring a going private transaction, but we now
believe that such a process appears much less developed than we had earlier
presumed (more along the lines of high level intention)," said Ryan Brinkman
at JP Morgan.

Tesla investors spooked by revelations in emotional interview

'No formal proposal' to take Tesla private

Elon Musk in the hot seat

The bank had raised its forecast following Mr Musk's tweet, which he later
said was based on discussions with Saudi Arabia's sovereign wealth fund.

However, Mr Brinkman said it was now clear that the fund's commitment
remained uncertain: "Formal incorporation into our valuation analysis seems
premature at this time."

Tesla shares hit almost $380 on 7 August following Mr Musk's tweet, but have
continued to fall since then.

They opened below $293 on Monday - off by more than 4% - but regained ground
over the course of trading to close at about $308, up almost 1%.

The slide this month has been good news for short sellers, who bet that
Tesla's share price will fall.

In recent years, their holdings have declined in value as the share price
rose sharply.

Since the now infamous tweet, the value of their holdings has risen by more
than $1.2bn, according to S3 Partners, a New York research firm.

Mr Musk has a well-known dislike of short sellers, whom he has called "jerks
who want us to die" and argued that taking Tesla off the stock exchange
would shield it from their attacks.--BBC

UK can be '21st Century exporting superpower', says Liam Fox

Britain can be a "21st Century exporting superpower", Liam Fox is expected
to say in a speech detailing the government's post-Brexit ambitions.

The international trade secretary will say he wants exports as a proportion
of UK GDP to rise from 30% to 35%.

Last year exports of goods and services rose to a record high of £620
billion.

The Federation of Small Businesses praised the aspiration - but said more
financial incentives, such as grants and "export vouchers", were needed.

Mike Cherry from the FSB said small companies could use the vouchers to
invest in things such as translation services or market research.

The government's UK Export Finance department - which offers financial help
to exporters - already has the capacity to support £50bn of exports.

'Full order books'

Exports from the UK are at a record high - boosted by the weakness in the
value of the pound and stronger global growth than expected.

Yes, there are uncertainties around Brexit - and if there is "no deal" the
economic effects could be dramatic and negative.

But many businesses report full order books, as British companies that do
export, particularly outside the EU, find plenty of willing customers.

The government now says it wants to build on that success - admitting that
although Britain does "punch above its weight" in export markets it also
punches below its potential.

Some 400,000 firms that could export goods and services have no
international presence.

In a speech setting out the government's export strategy, Mr Fox will say
the UK should "set its sights high" as it leaves the EU.

He is expected to tell a business audience in London that UK firms are
"superbly placed to capitalise on the rapid changes in the global economic
environment".

Minister for trade and export promotion, Baroness Rona Fairhead, told BBC
Radio 4's Today programme that she understood businesses wanted "stability
and certainty" in the short term and there were concerns about establishing
a trade deal with the EU.

But she said the government also needed to focus on the long-term future of
UK companies - and that was in exports.

"Research shows that businesses that export actually are healthier, make
more profit, employ more people and in fact are more sustainable," she said.

"Our message to small family businesses is take the plunge, we will provide
support to you because you are more likely have a flourishing business that
you can pass on to your generations."

What does Made in Britain mean for Brexit?

The challenges ahead for a UK/US trade deal after Brexit

But shadow international trade secretary Barry Gardiner said an export
strategy couldn't be based on "one-off arms sales".

"After record trade deficit figures, staff cuts in trade promotion and
delays to tradeshow funding for business, the government is finally
publishing an export strategy - some two years after the trade department
was established," he said.

"Our businesses need a strong future export relationship with the EU. The
Tory export strategy has thus far been based on controversial one-off arms
sales."

He said a Labour government would deliver a customs union with "our most
important trade partners".

Carolyn Fairbairn, director-general of the CBI (Confederation of British
Industry), said the strategy was "a timely signal" that the government was
committed to improving the UK's competitiveness.

"The CBI strongly supports the ambition to make exports 35% of GDP, which
will put the UK out in front of many of our international competitors," she
said.

"We estimate that in every region of the country there are around 10% of
businesses that could export, but don't, and we look forward to working
alongside the government to support and inspire them to seize the
opportunity."--BBC

Fashion website Farfetch plans US share float

Luxury shopping website Farfetch has announced plans to list its shares on
the New York Stock Exchange.

The London-based firm, founded in 2008 by Portuguese entrepreneur Jose
Neves, sells designer clothing online from firms including Gucci and
Burberry.

Farfetch said it had not yet decided how many shares to issue or what level
they would be priced at.

However, reports have suggested that the float could value the firm at as
much as $5bn (£4bn).

In 2016, Mr Neves told the BBC that a share flotation would be "the next
financial milestone" for the company.

Not so far-fetched: How one man built a $1.5bn fashion business

Farfetch said it had filed a registration statement with the US Securities
and Exchange Commission, but that it had not yet become effective.

In the past 10 years, Farfetch has forged a reputation as an online platform
for high-end boutiques,

In February, it signed a deal with Burberry to sell its clothing worldwide.

Last year, it began offering a 90-minute delivery service for Gucci products
to online shoppers in 10 cities including London, New York, Dubai and Los
Angeles.

Farfetch employs more than 1,000 people and ships products to more than 190
countries.--BBC

Venezuelans confused as Maduro's economic plan starts

A government plan to curb hyperinflation is coming into force in Venezuela
amid confusion about how it will work.

>From Monday, new banknotes denominated in "sovereign bolivars" are legal
tender, with five zeros taken off.

The measures come after the International Monetary Fund predicted that
inflation could reach one million per cent this year.

Economists have warned that the new measures could make things worse.

What's happening on Monday?

The move is effectively a redenomination. President Nicolás Maduro is
lopping five zeros off the current currency, the "strong bolívar", and
giving it its new name.

Venezuela crisis: How did we get here?

Venezuela deploys soldiers to markets

Profile: Venezuela's controversial leader Nicolás Maduro

Eight new banknotes and two new coins will also be launched. The new notes
will have a value of 2, 5, 10, 20, 50, 100, 200 and 500 sovereign bolivars.

Most old bolivar notes will continue to circulate "for a time", Venezuelan
Central Bank President Calixto Ortega announced. Only the lowest current
notes, worth less than 1,000 strong bolivars, will be phased out straight
away,

How will this affect prices?

Venezuela has been suffering from hyperinflation. According to a recent
study by the opposition-controlled National Assembly, prices have been
doubling every 26 days on average.

Some economists have been using the price of a cup of coffee with milk as an
indicator of inflation.

On 31 July cafes in the capital, Caracas, charged 2.5m strong bolivars for a
cup, about double the amount recorded five weeks earlier.

Under the new system, the drink will now cost 25 sovereign bolivars.

Will this make things easier?

For a time, it should make cash transactions easier. Someone wanting to pay
for their cup of coffee in cash until now had to carry huge wads of
banknotes.

Venezuela's hyperinflation in pictures

The biggest denomination in the old currency was the 100,000 strong bolivar
note. So the minimum amount of notes you could pay your coffee with would
have been 25.

High denomination banknotes were very sought after and banks imposed strict
restrictions on how much cash each customer could take out of their account
per day.

So Venezuelans would find themselves paying either with rucksacks full of
lower denomination bills or increasingly avoiding paying by cash altogether
and transferring money electronically.

As the BBC's South America correspondent Katy Watson found, even tips were
being paid via bank transfer.

Will the new currency stop inflation?

The government hopes that its new economic plan will not only curb the
country's hyperinflation but also put an end to the "economic war" which it
says has been waged against it by "imperialist forces".

It says the introduction of the new currency is accompanied by key measures
which will help Venezuela's battered economy recover. Among them are:

Raising the minimum wage to 34 times its previous level from 1 September

Anchoring the sovereign bolivar to the petro, a virtual currency the
government says is linked to Venezuela's oil reserves

Curbing Venezuela's generous fuel subsidies for those not in possession of a
"Fatherland ID"

Raising VAT by 4% to 16%

President Maduro tweeted [in Spanish] that his government would "dismantle
neoliberal capitalism's perverse war to install a virtuous, balanced,
sustainable, healthy and productive economic system".

But economists have been warning that the new measures do not address the
root causes of inflation in Venezuela and that the printing of new notes
could exacerbate inflation rather than curb it.

They say the rise in the minimum wage will only drive inflation up faster.
Some analysts estimate that the benefits of the new currency could be wiped
out by hyperinflation "within months".

What immediate effect is the change likely to have?

Even though Monday is the date on which the new notes were due to be
introduced, President Maduro declared it a bank holiday.

Not only will banks remain closed, financial institutions have also been
told to suspend all electronic transactions for 24 hours starting at 18:00
local time on Sunday.

The new notes will therefore not start circulating until Tuesday and with
long queues forming at banks even on average days many Venezuelans fear the
sudden introduction of the new currency could lead to chaos.

Ahead of the changes, many Venezuelans stocked up on whatever staple goods
they could get hold of amid longstanding shortages.

Economic experts have also questioned the wisdom of anchoring the new
currency to the petro.

Even though the government says the virtual currency has been a huge
success, details of how it operates have been hard to come by.

The US has banned its citizens from trading in it and one cryptocurrency
site, ICOindex.com, has even labelled the petro "a scam".

"Anchoring the bolivar to the petro is anchoring it to nothing," economist
Luis Vicente León told AFP news agency.--BBC

Apple 'pulls gambling apps from China App Store'

Apple has removed thousands of gambling apps from its China app store,
according to reports.

The tech giant would not confirm reports suggesting it had pulled 25,000
apps, but in a statement the firm said "gambling apps are illegal and not
allowed on the App Store in China".

The cull follows criticism from state broadcaster CCTV for not doing enough
to filter out banned material.

Apple currently offers more than 1.8 million apps in China.

The removal of the gambling apps has been widely reported, but originated
from CCTV which claimed that Apple had carried out a "large-scale removal of
illegal apps that sold fake lottery tickets and offered gambling services".

In its statement, Apple said: "We have already removed many apps and
developers for trying to distribute illegal gambling apps on our App Store,
and we are vigilant in our efforts to find these and stop them from being on
the App Store."

Under fire

It is not the first time that the tech giant has been criticised by Chinese
state media for having illegal apps in its store.

In the past year, Apple has removed Skype, as well as hundreds of virtual
private networks, or VPNs which are used to send secure emails, transmit
data and access websites that are blocked in China.

Apple has also been accused of not doing enough to filter banned content on
its iMessage service.

Apple iCloud: State firm hosts user data in China

Skype removed from China Apple and Android app stores

Apple 'pulls 60 VPNs from China App Store'

In a report on Sunday, CCTV said "Apple itself has set up the rules on how
to allow apps onto its store, but it didn't follow that."

The network said that resulted in the proliferation of "bogus lottery apps
and gambling apps".

The latest media attack comes at a sensitive time for US companies operating
in China, amid worries about the fallout of the trade war between the
world's two largest economies.

Yet despite the tit-for-tat trade tariffs threatened by both sides, American
goods such as Apple's iPhones continue to be popular in China.--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
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been compiled from sources believed to be reliable, but no representation or
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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
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