Major International Business Headlines Brief::: 23 August 2018

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Major International Business Headlines Brief::: 23 August 2018

 


 

 


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*  South Africa's rand firm before inflation data

*  Egypt targets $11 bln foreign investment in 2018-19 vs $7.9 bln in
previous year

*  South Africa's consumer inflation rises to highest in ten months in July

*  South Africa's parliament summons former Steinhoff CEO over accounting
scandal

*  Ivory Coast to auction cocoa crop in advance to guarantee price for
season

*  IMF to begin talks with Angola on financial support

*  Zambia raises 2018 fiscal deficit forecast to 7.8 percent: central bank

*  South Africa's Bidcorp annual profit up 9.1 pct

*  Zambia copper output up 10.6 pct in first half of 2018 - central bank

*  South African gold sector wage negotiations deadlock - union

*  US brings in second batch of tariffs against China

*  Saudi Arabia insists it is 'committed' to Aramco float despite reports

*  Container ship to break the ice on Russian Arctic route

*  Qantas profits soar nearly 15% despite rising fuel costs

*  Bikes, cots and fridges: the imports hit by Trump's tariffs

*  Xiaomi's Poco F1 phone threatens a price war

*  Venezuela 'paralysed' by launch of sovereign bolivar currency

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

South Africa's rand firm before inflation data

JOHANNESBURG (Reuters) - South Africa’s rand firmed early on Wednesday
before the publication of local consumer inflation data that was expected to
provide clues on the next interest rate move.

 

At 0630 GMT the rand was 0.1 percent stronger at 14.3975 per dollar,
retreating slightly from an overnight best of 14.2800 as investors took a
cautious approach, with technical resistance at 14.20 the next target.

 

“The target of 14.20 was just out of touch but if you had sold the rallies
to 14.45 then the move to 14.28 yesterday afternoon provided a fair bit of
return,” said Standard Bank’s chief currency trader Warrick Butler in a
note.

 

After sliding to a two-year low of 15.70 last week as the Turkish crisis
triggered a broad flight from emerging markets, the rand has regained some
ground, advancing around 8 percent in the last seven days as the greenback’s
rally faltered.

 

Consumer inflation figures for July due at 0800 GMT are expected to show
prices rose again. Analysts polled by Reuters expect year-on-year
price-growth at 5 percent from 4.6 percent in June.

 

Traders said a higher than consensus print would offset the carry-trade
attraction, triggering some short-term currency losses, but the increasing
likelihood of rate hikes by the Reserve Bank would lure yield-seeking
foreign investors.

 

“If the rand trades back above 14.60 then I fear we may see a continuation
of the precious week’s nervousness,” Butler said.

 

Bonds were slightly firmer, with the yield on the benchmark 2026 paper down
0.5 basis points to 8.98 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.

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Egypt targets $11 bln foreign investment in 2018-19 vs $7.9 bln in previous
year

CAIRO (Reuters) - Egypt plans to attract $11 billion in foreign direct
investment in the current 2018-19 fiscal year, up from $7.9 billion the year
before, Planning Minister Hala al-Saeed said on Wednesday.

 

The minister said the government, under a medium-term development plan to
2022, hopes to create about 750,000 jobs in the current fiscal year which
ends in June 2019.

 

Egypt is implementing deep reforms under a 2016 IMF-backed austerity plan
that called for energy subsidy cuts.

 

Economists say that the reforms, which had piled up pressure on ordinary
Egyptians grappling with higher fuel, transportation and electricity prices,
were intended to help attract more foreign investments into the country.

 

Egypt’s unemployment rate fell to 9.9 percent in the second quarter of 2018,
down from 11.98 percent during the same period a year ago, according to
state statistics agency CAPMAS.

 

The medium-term plan, which is part of Egypt’s Vision 2030, is intended to
bolster the Egyptian economy’s competitiveness, Saeed said.

 

She said that the plan envisages economic growth to increase to 8 percent in
the 2021-22 fiscal year, up from 5.8 percent in the current 2018-19 fiscal
year.

 

Saeed said that raising non-oil exports by an annual average of 13 percent
to reach $35 billion by 2021-22 was one of the main goals of the plan.

 

The plan also aims to increase average savings to 23 percent by 2021-22 from
around 11 percent in the current fiscal year.

 

 

 

South Africa's consumer inflation rises to highest in ten months in July

JOHANNESBURG (Reuters) - South Africa’s headline consumer inflation rose to
its highest in ten months in July as the cost of transport and household
goods increased, but some analysts said the central bank was unlikely to
raise interest rates.

 

The Reserve Bank held its benchmark rate for a fifth meeting in a row in
July, but warned it was ready to tighten policy despite the weak economy in
response to rising rand-driven inflationary pressures and offshore
volatility.

 

Headline consumer inflation quickened to 5.1 percent year-on-year in July
from 4.6 percent in June, and rose to 0.8 percent from 0.4 percent on a
monthly basis, Statistics South Africa said on Wednesday.

 

The figure was a touch above expectations of 5 percent annual increase,
pushing the rand to 14.4400 from 14.3900, but analysts said investors and
the central bank would be more concerned with core inflation than the
headline figure.

 

The rand fell more than 10 percent last week to a 2-year low as the Turkish
crisis turned investors off emerging markets.

 

The currency has since recovered as the yield offered by local assets, with
benchmark bonds yielding around 9 percent, offering an attractive
carry-trade.

 

Core inflation, which excludes the prices of food, non-alcoholic beverages,
petrol and energy, rose to 4.3 percent year-on-year from 4.2 percent, while
on a month-on-month basis it increased to 0.6 percent from 0.2 percent
previously.

 

“The risk of higher rates has increased due to the weaker currency, but that
is only going to start showing up in inflation in 12 to 18 months, so we
don’t see the bank raising rates this year,” said economist at Nedbank
Busisiwe Radebe.

 

Yasemin Engin, assistant economist at Capital Economics concurred: “Core
inflation remained stable, and we think that the SARB will keep policy on
hold this year.”

 

 

 

South Africa's parliament summons former Steinhoff CEO over accounting
scandal

JOHANNESBURG (Reuters) - South Africa’s parliament on Tuesday summoned
Steinhoff’s former chief executive and ex-chief financial officer to give
evidence in an inquiry over the accounting scandal at the firm.

 

Former CEO Markus Jooste, who is under fraud investigation by the South
Africa police, resigned in December when Steinhoff uncovered accounting
irregularities that sent its share price crashing.

 

The former CFO Ben la Grange will also be summoned to give evidence to the
Standing Committee on Finance. The hearing will take place on August 29.

 

Steinhoff is fighting for survival after revealing multi-billion euro holes
in its balance sheet that wiped away more than 90 percent of its market
value and forced it to sell assets to raise working capital.

 

 

Ivory Coast to auction cocoa crop in advance to guarantee price for season

ABIDJAN (Reuters) - Ivory Coast’s Cocoa Coffee Council (CCC) has decided to
auction all of its cocoa production to exporters in advance in order to set
a guaranteed price throughout the season for producers, CCC sources said on
Wednesday.

 

Approximately 1.7 million tonnes of cocoa export contracts have already been
sold in mid-August, which should allow the CCC to set a guaranteed price of
between 750 and 800 CFA per kg in October, the sources said.

 

One CCC source said it had already sold 1.4 million tonnes of the main and
320,000 tonnes of the mid-crop.

 

“We think that by selling all the harvest before the beginning of the
season, it gives us more guarantee in case of falling prices and allows us
to set a guaranteed price for planters unchanged between the main and the
mid-crop,” the source told Reuters.

 

“We have been forced to change our sales methods to adapt to the current
environment. There is too much fluctuation and instability in the market,”
added another source.

 

Ivory Coast cocoa production is expected to remain stable at around 1.8
million and 1.9 million tonnes in the next two to three years, compared with
2 million tonnes last season, due to swollen shoot development, according to
CCC sources.

 

The government, through the Ministry of Water and Forests, has also
undertaken to clamp down on illegal cocoa farming, which would also reduce
cocoa production.

 

“Production is expected to remain stable between 1.8 and 1.9 million tonnes
between now and 2020 because diseases like swollen shoot are progressing,
forcing us to pluck out hundreds of thousands of hectares, which drives
production down,” said one source.

 

 

 

IMF to begin talks with Angola on financial support

JOHANNESBURG (Reuters) - The International Monetary Fund (IMF) said on
Tuesday it would begin talks with Angola over providing financial support
after the oil producing country’s economic growth was weaker than expected
this year.

 

Africa’s second-largest oil producer has been hit by lower oil prices, which
have caused a dollar liquidity squeeze that has made it difficult for
foreign companies to repatriate profits and discouraged many from investing.

 

Angola’s Finance Ministry said on Monday it had sought financial support
from the IMF but did not provide further detail on how much money was
involved.

 

“We expect to initiate programme discussions with the Angolan authorities as
soon as feasible,” Deputy Managing Director of the IMF Tao Zhang said in a
statement which confirmed the Fund had received a letter from the Angolan
authorities to start talks.

 

The request came after the IMF was invited to Luanda in October to negotiate
the programme, which would last for two years and then be extendable for one
more.

 

“The IMF stands ready to help the authorities address Angola’s economic
challenges by supporting their economic policies and reforms based on the
government’s macroeconomic stabilisation programme and in the national
development plan for 2018–22,” Zhang said.

 

Angola’s economy has struggled due to lower oil prices, a situation made
worse by declining production. Output is expected to fall to 1.5 million
barrels per day in 2018, down from 1.6 million last year and 1.9 million a
decade ago.

 

The IMF expects the country’s economy to grow 2.2 percent this year, well
below an original government forecast of 4.9 percent.

 

President João Lourenço, who took over last September after 38 years of rule
by José Eduardo dos Santos, has said he wants to bring about an economic
miracle in Angola by opening up to foreign investment and diversifying away
from oil.

 

 

 

Zambia raises 2018 fiscal deficit forecast to 7.8 percent: central bank

LUSAKA (Reuters) - Zambia has raised its 2018 forecast for the country’s
fiscal deficit to 7.8 percent of gross domestic product from an initial
estimate of 6.1 percent, governor Denny Kalyalya said on Wednesday.

 

“Containing the fiscal deficit within programmed levels remains a
challenge,” Kalyalya told a news conference shortly after saying interest
rates would be kept unchanged at 9.75 percent.

 

 

South Africa's Bidcorp annual profit up 9.1 pct

JOHANNESBURG (Reuters) - Global foodservice group Bid Corporation Ltd
(Bidcorp) reported a 9.1 percent rise in annual earnings on Wednesday,
supported by a strong performance in Europe where investments and
acquisitions made in recent years have paid off.

 

The South African firm, which also has operations in Australasia and
emerging markets, has been exiting low-margin logistics operations globally
and making bolt-on acquisitions in order to broaden its range and geographic
reach.

 

The shift has boosted its European operations, which Bidcorp called its
“standout performer this year”.

 

“Investment made in prior years established a strong foundation on which we
capitalised in improved market conditions,” Bidcorp said in a statement.

 

In the year ending June 30, Bidcorp made several food service acquisitions
in Australia, Netherlands, Spain, New Zealand and South Africa, which helped
increase group revenue by 3.3 billion rand ($225.5 million) and trading
profit by 22.5 million rand, it said. The firm also has operations in
Britain.

 

Headline earnings per share (EPS) from continuing operations rose to 1,286
cents in the year ended June from 1,179 cents in the prior year.

 

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

 

Bidcorp, which supplies hotels, restaurants and industrial caterers, also
said net revenue rose 8 percent to 119.4 billion rand.

 

South Africa’s listeria crisis hurt the company’s Crown Food Group, with
ingredients for processed meat products hard hit.

 

“The lost sales impact was material while stock on hand rose, impacting
working capital,” the firm said.

 

A final dividend of 280 cents was declared, up from 224 cents.

 

($1 = 14.6363 rand)

 

 

 

Zambia copper output up 10.6 pct in first half of 2018 - central bank

LUSAKA (Reuters) - Zambian copper output rose 10.6 percent to 402,222 tonnes
in the first half of the year, the central bank governor Denny Kalyalya said
on Wednesday.

 

Zambian copper mining industry has been increasing production of the metal
thanks to stable power supply and relatively higher metal prices in recent
months.

 

 

 

South African gold sector wage negotiations deadlock - union

JOHANNESBURG (Reuters) - South Africa’s National Union of Mineworkers (NUM)
said on Tuesday that wage negotiations in the gold sector were at a deadlock
and the union had declared a dispute, a move that is one step short of a
strike.

 

However, the Minerals Council, formerly known as the Chamber of Mines, which
is representing gold producers in the wage talks, said the talks were still
ongoing.

 

Gold producers have argued that above-inflation wage hikes have been adding
to the cost burden in the bullion industry, which has been hit by depressed
prices and labour unrest.

 

The dispute meant that if conciliation talks between the parties mediated by
the Commission for Conciliation, Mediation and Arbitration failed to break
the impasse, a protected strike could potentially go ahead.

 

“We have reached a deadlock. It is the end of the road. We have declared a
dispute,” NUM said in a statement.

 

NUM is one of four unions involved in negotiations, which include the
Association of Mineworkers and Construction Union (AMCU), Solidarity and
UASA.

 

“We are still engaging with the unions,” said spokeswoman Memory Johnstone
at the Minerals Council said.

 

The four companies involved, Sibanye-Stillwater, Harmony Gold, AngloGold
Ashanti and a smaller producer Village Main Reef each tabled different offer
in August of up to 7.2 percent to underground employees and up to 4.5
percent for miners and artisans. [nL5N1UT7F6] Inflation stood at 4.6 in
June.

 

($1 = 14.6363 rand)

 

 

 

US brings in second batch of tariffs against China

US President Donald Trump's trade war against China has moved up a gear as
it brings in a 25% tax on a second wave of goods worth $16bn (£12.4bn).

 

The move ratchets up the dispute which began in July. The US imports far
more goods from China than it exports to it.

 

There are fears that more tariffs could cause further damage to companies
and consumers. Goods affected this time include motorcycles and aerials.

 

China immediately imposed retaliatory taxes on the same value of US
products.

 

These will cover US goods including coal, medical instruments, cars and
buses.

 

China also says it plans to file a fresh complaint against the tariffs at
the World Trade Organization (WTO), which adjudicates in global trade
disputes.

 

China's commerce ministry warned of a "counter-attack" after Washington
imposed the tariffs, saying it "clearly suspected" the US of violating WTO
rules.

 

It filed an initial complaint at the WTO in July as Mr Trump imposed his
first round of tariffs.

 

The tit-for-tat tariffs come as officials from the US and China hold
low-level talks in Washington, but hopes are not high that they will bring
the dispute to an end.

 

Bikes, cots and fridges: the imports hit by Trump's tariffs

US-China trade row: What has happened so far?

The early victims of Trump's trade war

Six ways China could retaliate in a trade war

As well as China, Mr Trump has imposed taxes on Mexico, Canada and the EU,
to encourage consumers to buy American products. All of those countries have
retaliated.

 

This second round of tariffs comes despite testimony to the US Trade
Representative's Office by dozens of US companies and industry groups.

 

Many said the new tax would hurt their businesses and warned that they would
not be able to absorb another tax without raising prices for US consumers.

 

However, the $16bn is a drop in the ocean compared with the amount that Mr
Trump has indicated could be hit.

 

The president said in July that he was ready to tax all of the $500bn worth
of Chinese imports into the US.

 

What hurts Beijing can also hurt countries further afield.

 

Many goods that are needed for final assembly in China actually come from
other South East Asian countries such as Malaysia and Indonesia, and go
through Singapore to have some other products added on.

 

Economists say that means some countries in the Asia-Pacific region could
see as much as a percentage point shaved off economic growth.

 

International trade is what has helped Asia turn itself from an economic
backwater into one of the most dynamic and fast growing areas in the world.
It's lifted millions out of poverty.

 

But if this trade war continues, the outlook could be far more grim.

 

The US has threatened a third round of tariffs on an additional $200bn of
Chinese goods. These could come as soon as next month.

 

It has since said those products could be hit with a 25% levy - more than
double the 10% originally planned.

 

China has said it would respond with another tariff on $60bn of US goods.

 

But it would be harder for Beijing to match the US threat, because its
manufacturers export far more products than American businesses send to
China.

 

The US Trade Representative's Office is holding hearings this week on the
likely impact of more tariffs.

 

China has previously accused the US of "unilaterally" heightening tensions
between the two economic giants.

 

There are signs that the trade war is already having an impact.

 

Major carmakers recently warned that changes to trade policies were hurting
performance.

 

The International Monetary Fund said last month an escalation of the
tit-for-tat tariffs could shave 0.5% off global growth by 2020.

 

Iris Pang, Greater China economist at ING Wholesale Banking in Hong Kong,
said that as US imports from China were mostly consumer goods, US consumers
would suffer from higher prices.

 

"And Chinese imports from US are usually parts and producer goods, [so] the
tariffs would make these more expensive for Chinese manufacturers," she
added.--BBC

 

 

 

Saudi Arabia insists it is 'committed' to Aramco float despite reports

Saudi Arabia has denied reports that it cancelled its plans to sell shares
in state oil giant Aramco.

 

Reuters earlier reported that a group of financial advisers had abandoned a
plan to sell 5% of the firm.

 

The news agency quoted a source suggesting the decision was taken some time
ago but was not being announced.

 

Saudi Arabia's energy minister said the government would proceed with the
flotation - which has been billed as the largest ever.

 

"The government remains committed to the IPO [initial public offering] of
Saudi Aramco at a time of its own choosing when conditions are optimum,"
Khalid al-Falih said in a statement.

 

Mohammed bin Salman, Saudi Arabia's Crown Prince, first proposed the share
sale early in 2016 as part of his economic reform agenda, to bring Western
regulation and scrutiny to the company, as well as raising cash to reduce
the country's large budget deficit.

 

At the time he predicted the sale would value Aramco at around $2 trillion
(£1.55 tn). The plan would see shares float on both the local stock market
in Riyadh and one of the world's leading international financial centres.

 

Reports of 'delay and cancel'

Reuters earlier said it had spoken to four senior industry sources about the
plans being scrapped.

 

"The decision to call off the IPO was taken some time ago, but no-one can
disclose this, so statements are gradually going that way - first delay then
calling off," Reuters quoted one as saying.

 

The wire service said financial advisers who had been working on the listing
were now focusing on the proposed acquisition of a "strategic stake" in
local petrochemicals maker Saudi Basic Industries, according to two of its
sources.

 

In late 2017 rumours first emerged that the flotation might be cancelled,
and it was suggested that Aramco shares might instead be sold privately to
the world's biggest sovereign wealth funds and institutional investors.

 

Big business

Saudi Aramco ranks as the world's largest oil and gas business. Forbes
Magazine estimates it generates $1bn a day in revenues. Its businesses cover
management of the world's biggest oil fields, as well as extensive refining
and chemicals operations.

 

With stakes this high, London, Hong Kong and New York competed fiercely to
host the initial public offering.

 

US President Donald Trump tweeted last year: "Would very much appreciate
Saudi Arabia doing their IPO of Aramco with the New York Stock Exchange.
Important to the United States!"

 

In London the Financial Conduct Authority changed its rules to make the
listing easier, attracting criticism from MPs and from the Institute of
Directors who said adapting regulations to accommodate Saudi Aramco could
harm the UK's reputation for good governance.

 

No decision had been taken on where to list the shares.

 

Meanwhile, there have been suggestions that some members of the Saudi royal
family are concerned that a listing in New York may entail legal risks,
citing US terrorism legislation that would permit US citizens to sue Saudi
Arabia.--BBC

 

 

Container ship to break the ice on Russian Arctic route

A Danish vessel setting sail from Vladivostok this week is set to become the
first container ship to tackle the Arctic sea route north of Russia.

 

The Venta Maersk, owned by Maersk Line, and carrying 3,600 containers, hopes
to reach St Petersburg by late September.

 

That could be up to 14 days faster than the southern route via the Suez
Canal.

 

Maersk will collect data on the Northern Sea Route to see if the melting of
Arctic sea ice has made the passage economically viable.

 

Maersk said: "The trial passage will enable us to explore the operational
feasibility of container shipping through the Northern Sea Route and to
collect data."

 

The Venta Maersk, designed as a new "ice-class" container ship, will carry
frozen fish and other refrigerated and general cargo.

 

The route stretches from the Bering Strait in the east between Russia and
Alaska to Norway in the west.

 

However, Maersk added: "Currently, we do not see the Northern Sea Route as a
commercial alternative to our existing network, which is defined by our
customers' demand, trading patterns and population centres."

 

Nuclear icebreakers

Until now the the route has required an escort of expensive nuclear
icebreakers to accompany any vessel.

 

But global warming, which has raised temperatures along the route during the
summer to over 30C, is changing its viability.

 

A report from the Copenhagen Business School in 2016 found that shipping
through the Northern Sea Route would become economically feasible in about
2040 if the ice cover continued to diminish at its present rate.

 

It may happen even earlier. The Christophe de Margerie, a 984ft liquefied
natural gas tanker built specifically for the journey, became the first ship
to sail the route unaided last year, while the Russian gas company Novatek
has used the route for specially built tankers this year.

 

China is also using the Northern Sea Route as part of its One Belt, One Road
initiative to build trade routes across Eurasia.

 

Its state-owned Cosco shipping company sent a multi-purpose cargo ship, the
Lian Hua Song, into a Russian port last autumn for the first time via the
route, delivering equipment for the construction of a subway and a
fertiliser plant.--BBC

 

 

 

Qantas profits soar nearly 15% despite rising fuel costs

Australia's national airline has posted a 15% jump in annual net profit with
healthy returns across its business, despite a rise in the price of fuel.

 

Net profit rose to $A980m ($719m; £557m) in the year to the end of June, up
from $A852m.

 

Qantas put the results down to strong demand for domestic travel, as well as
efforts to improve its business.

 

An aggressive restructure recently has seen jobs slashed, its fleet reduced
and the cutting of loss-making routes.

 

Those measures saw Australia's biggest airline deliver its second highest
profit in its 97-year history last year.

 

Qantas chief executive Alan Joyce said this year's numbers "show a company
that's delivering across the board".

 

The biggest contributor to the rise in profits was strong demand for
domestic travel, but international travel also saw a 7% increase.

 

First non-stop flight arrives in London from Perth

Mr Joyce said healthy demand across key sectors matched with improving
levels of capacity was a positive sign for the year ahead.

 

The upbeat outlook comes despite expectations that fuel costs will rise
further in 2019.

 

"We're confident that we will substantially recover this through a range of
capacity, revenue and cost efficiency measures," Mr Joyce said.

 

A strong result was largely expected after Qantas reported a bumper 17.9%
jump in interim net profit in February.--BBC

 

 

 

Bikes, cots and fridges: the imports hit by Trump's tariffs

This week hundreds of US business leaders will head to Washington DC in a
bid to convince the Trump administration not to impose additional tariffs on
imported Chinese goods.

 

The White House has already increased charges on $34bn (£26.4bn) worth of
Chinese products, and is set to impose tariffs on a further $16bn (£12.4bn)
of goods on Thursday.

 

The US has also threatened a third round of tariffs on $200bn (£155bn) worth
of Chinese imports, listing more than 6,000 items including food products,
minerals and consumer goods.

 

In a series of marathon sessions on Capitol Hill, industry representatives
will outline how such a tit-for-tat trade war could hurt their companies,
and in turn, American shoppers.

 

Here are some of the products they claim will be affected.

 

1. Children's bikes

 

"The proposed 25% increase on standard [non-electric] bikes will have a
dramatic effect on the price of kids bikes," says Joe DeChamp of Hyper
Bicycles, in written testimony submitted to the US Trade Representative
Robert Lighthizer.

 

Such bicycles, Mr DeChamp says, are "readily available for less than $100, a
price that allows almost all families to provide healthy recreation for
their children".

 

2. Animal medicine

 

"The list covers products imported by animal health companies from China
that represent crucial inputs for many veterinary medicines manufactured in
the US," says Rachel Cumberbatch of the Animal Health Institute.

 

She adds that it can take up to four years to bring a new supplier on board.
And as a result, "the new duties would increase the cost of manufacturing
and hurt the competitiveness of US animal health companies".

 

3. Baby cots

 

"Increasing tariffs on juvenile bedding products would directly promote an
increased risk to child safety," claims Sam Shamie, of the Delta Enterprise
Corporation.

 

"Price increases for cribs and other juvenile products will drive consumers,
particularly those of modest means, to turn to used and rebuilt products,"
he adds. "This is particularly dangerous with respect to juvenile products,
since used or rebuilt goods generally will not meet current CPSC standards
for children's products."

 

4. Roof tiles

 

"One of the main essential ingredients in our manufacturing process is the
inorganic iron oxide pigment, as well as related colouring matter, that is
produced in China," says Seamus Burlingame of Eagle Roofing Products.

 

The company imports around 20 million pounds of the stuff every year.

 

"If the proposed tariff increase becomes effective," Mr Burlingame warns,
"we will have no choice but to pass these increased costs along to the
American consumer".

 

5. Fridges, dehumidifiers and air conditioners

 

Danby Appliances has four factories in the US - in Ohio, Arizona, Alabama
and New Jersey. But it wants the Trump administration to scrap proposed
tariffs on Chinese refrigerators, freezers, dryers and indoor plant growers,
to name a few.

 

"Any tariff would simply result in a cost of product increase to the US.
consumer," says Jim Estill of Danby Appliances.

 

"Many of the products we sell are small and lower cost in nature and will
impact the average working class resident, elderly and students the most."

 

6. Car tyres

 

The US Tire Manufacturers Association is one of many trade bodies protesting
the Trump administration's tariffs.

 

"Already, our suppliers are experiencing shortages that will affect our
manufacturing operations in the US," says Tracey Norberg.

 

Additional trade constraints, she adds, could make it difficult to "secure
the quality and quantity of materials necessary for tire manufacturing".

 

7. Handbags and luggage

 

Kenneth O'Brien of Gemini Shippers Group is particularly vocal in his
opposition to tariffs on Chinese imports, which he says "will lead to the
destruction of American jobs and the potential bankruptcy of U.S. small
businesses".

 

He cites several examples.

 

"The duty rate for a simple infant warmth hat will increase from 7.9% to
nearly 18%; the duty rate for typical inexpensive leather handbags common
among working Americans will increase from 10% to 20%; and the duty rate for
basic luggage used by everyday Americans will increase from 20% to 30%."

 

8. But some industries welcome the tariffs...

 

There are, however, a few trade bodies heading to Washington to cheer Donald
Trump's stance on China. Some, such as the Southern Shrimp Alliance, are
even appealing for more tariffs.

 

The organisation, which represents shrimp fishermen and processors in the
coastal states of North Carolina, South Carolina, Georgia and Florida, to
name a few, says Chinese imports represent a health risk to the American
public, and to an industry that supports thousands of small and medium-sized
family-run enterprises across the US.

 

"Antibiotic use remains prevalent in Chinese aquaculture," the Alliance says
in its written testimony. "It should therefore be no surprise that China
has, far and away, the worst record of any country regarding the presence of
banned antibiotics in their seafood shipments to the US."--BBC

 

 

 

Xiaomi's Poco F1 phone threatens a price war

Xiaomi has unveiled a smartphone with high-end features and a budget price,
under a new brand.

 

The Poco F1 features the latest Snapdragon chip, a larger-than-normal
4,000mAh battery and up to eight gigabytes of RAM - matching Samsung's
Galaxy Note 9 in those specifications.

 

But it will cost substantially less than flagship models from rival
"affordable" brands when sold in India.

 

One expert said the launch may force other firms to rethink their prices.

 

"It's got the best Qualcomm processor you can get right now while in essence
costing about half the price of some rivals," said Mike Lowe, reviews editor
of the gadget site Pocket-lint, who has tested the device.

 

"It's very powerful with a massive battery, and the consumers it is
targeting are not going to worry too much about the fact it's a bit bulky.

 

"This is Xiaomi trying to keep the dominance it has of the Indian market,
and to appeal to other territories too."

 

The basic model of the Poco F1 - which has 6GB of RAM and 64GB of internal
storage - is 20,999 rupees ($300; £233).

 

The top-end version, with a synthetic fibre back and more RAM and storage -
is 29,999 rupees ($430; £332).

 

Local press have identified its nearest competition as being the OnePlus 6
and the Asus ZenFone 5Z.

 

Models of the former are priced between 34,999 and 43,999 rupees while those
of the latter range from 29,999 to 36,999 rupees.

 

Xiaomi's price advantage becomes even wider to members of HDFC bank, who
receive a 1,000 rupee discount.

 

Only Huawei's new Honor Play beats the Poco F1 on price - 19,999 to 23,999
rupees - but its specifications lag behind.

 

The Poco F1 has only been confirmed for India at this point, where it will
be released on 29 August. But its Chinese maker has said it plans to bring
the handset to about 50 other countries.

 

One expert said Europe could be included.

 

"Xiaomi is now moving into markets it hadn't targeted and opening
conversations with mobile operators," commented Ian Fogg, a mobile industry
analyst at OpenSignal.

 

"And they are now using Qualcomm chipsets, which operators are comfortable
with and used to dealing with - making its products more attractive to them.

 

"That's important, because unlike in South and South-East Asia, where a lot
of handsets are sold directly to consumers, in Europe most phones are still
sold via the operators."

 

Design compromises

Xiaomi has managed to hit its price point by making design trade-offs.

 

It uses a five-year-old version of Corning's Gorilla Glass for the display,
which is three generations behind the latest release.

 

Its cameras do not have optical image stabilisation.

 

In addition, the Verge news site reports that the phone's body picks up
grease easily and its audio quality is "tinny".

 

But early reviews suggest it can handle processor-intensive Android games
without signs of a struggle, and does not get hot in the hand thanks to
liquid cooling.

 

"The phone itself is superb, offering unmatched value for money in this
category," said Android Central's review, although it added that it "doesn't
look premium by any stretch of the imagination".

 

Sales jump

The Poco F1's release comes at a time of resurgence for Xiaomi.

 

After a slump in sales and falling behind several domestic competitors in
2016, it admitted it had "pushed ahead too fast".

 

Since then, however, it has regained ground and is now the fourth
best-selling handset maker in the world and the top vendor in India,
according to IDC.

 

The market research firm says Xiaomi's success is in part down to it
increasing sales through physical stores while maintaining its "dominance in
the online space".

 

                   

The Poco F1's launch coincides with Xiaomi's publication of its first set of
financial results since floating its shares in Hong Kong in June.

 

The numbers showed a net profit of 14.63bn yuan ($2.1bn; £1.7bn) compared to
a net loss of 11.97bn yuan for the same period in 2017.

 

In addition, it said that its sales were 68% up on the year, thanks in large
part to the popularity of its smartphones.--BBC

 

 

Venezuela 'paralysed' by launch of sovereign bolivar currency

Venezuela came to a standstill on Tuesday as the country tried to deal with
its newly introduced currency.

 

Thousands of businesses closed in order to adapt to the "sovereign bolivar",
and many workers stayed at home.

 

President Nicolás Maduro launched the new banknotes on Monday, revaluing and
renaming the old bolivar currency.

 

The government says this will tackle runaway inflation, but critics say it
could make the crisis worse. The notes went into circulation on Tuesday.

 

President Maduro had declared Monday to be a bank holiday.

 

Confusion over Venezuela's economic plan

Venezuela crisis: How did we get here?

Analysis: Confusion reigns in the oil-rich nation

By Will Grant, BBC Latin America correspondent

 

Much of Caracas is eerily empty for a working day. Some in the opposition
called for a strike but many people are simply staying at home out of
uncertainty, too concerned about what the new currency will mean for the
embattled nation to venture out.

 

The result is that Venezuela is, in essence, a paralysed country. Confusion
reigns in the oil-rich nation and, historically, such moments in Venezuela
can be extremely volatile.

 

As yet, there are no reports of significant protests or violence, but there
is an increased deployment of the security forces across the country for the
roll out of the new bolivar.

 

President Nicolás Maduro has said the measure will be the saviour of the
economy and tackle the spiralling hyper-inflation. Ordinary people however,
simply don't believe him and are concerned for the future, putting even
greater pressure on neighbouring countries struggling to deal with the
exodus of millions of Venezuelans.

 

The new currency lops five zeroes off the old "strong bolivar" - meaning a
cup of coffee worth 2.5m strong bolivars in the capital Caracas last month
now costs 25 sovereign bolivars.

 

However, people in Caracas told the BBC they were restricted to withdrawing
only 10 sovereign bolivars on Tuesday from cash machines.

 

Separately on Tuesday, Venezuela was shaken by a powerful earthquake along
its northern coastal region that was felt in Caracas, where many of the
city's buildings were evacuated.

 

US seismologists reported a magnitude 7 quake with an epicentre in the east
of Venezuela, while the Venezuelan authorities recorded a magnitude 6.3
quake.

 

Eyewitnesses in the coastal town of Cumana described residents rushing into
the streets, according to Reuters news agency. No casualties were reported.

 

Earlier, cities across Venezuela were virtually deserted as people struggled
to get hold of the country's new banknotes.

 

Venezuela's black market in dollars was even frozen by the currency shift
amid confusion and economic uncertainty.

 

The government announced several other key economic changes to accompany the
new notes, including raising the minimum wage by 34 times its previous level
from 1 September, raising VAT and cutting generous fuel subsidies.

 

President Maduro also said the sovereign bolivar would be tied to the petro,
a virtual currency the government says is linked to Venezuela's oil
reserves.

 

But 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

 

 

 

 

 

 

 

 

 


 

 


 

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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