Major International Business Headlines Brief::: 06 December 2018

Thu Dec 6 09:03:26 CAT 2018

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Major International Business Headlines Brief::: 06 December 2018

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

*  Zimbabwe to allow two new companies to mine diamonds

*  South Africa's Eskom wants state to take on $7.2 bln of its debt

*  S.Africa's private sector contracts at slower pace in Nov: PMI

*  Tunisia's inflation stable at 7.4 pct in November

*  Congo mining revenues jump 147 pct in first 9 months of 2018

*  Uganda central bank holds main lending rate at 10 pct

*  Kenya private sector activity slows slightly in November: PMI

*  Kenyan central bank sets next rate-setting meeting for Jan. 28

*  Cuba offers 3G mobile internet access to citizens

*  UK economic growth 'stalls' as service sector slides

*  Ryanair compensation claims to go to court

 <mailto:info at bulls.co.zw> 

Zimbabwe to allow two new companies to mine diamonds

HARARE (Reuters) - Zimbabwe will now allow two more private companies to
explore and mine diamonds in the country, bringing to four the number of
firms that will operate in the sector, mines minister Winston Chitando has
said.

Last week Chitando said the country did not plan to change its ownership
rules for diamonds and platinum, denting hopes among some miners the country
will open up ownership as it announces mineral frameworks in coming weeks.

In a video posted on the Information Ministry official Twitter page on
Tuesday, Chitando told reporters that cabinet had adopted a new diamond
policy that would see two more private companies being allowed to explore
and mine diamonds.

Chitando did not name the two new diamond firms.

He said any company or person with title for diamonds would have to go into
partnership with the four companies.

The largest diamond fields are in Marange in eastern Zimbabwe, where
production is dominated by the state-owned Zimbabwe Consolidated Diamond
Company. It is expected to produce 3.5 million carats this year, up from 2.5
million in 2017.

Murowa Diamonds, formerly majority-owned by Rio Tinto until June 2015, is
the only private company mining diamonds in south central Zimbabwe.

“Four is a number which was felt that it would give government and all
stakeholders the effective monitoring of what is happening on the ground,”
Chitando said.

London-listed Vast Resources and Botswana Diamonds have previously said they
are planning to mine diamonds in Marange in partnership with a local
community trust.

In early 2016, Mugabe’s government evicted all diamond mining firms,
including two Chinese joint venture companies from Marange, saying their
licences had expired after they declined to merge under the state-owned
mining firm.

 <mailto:info at bulls.co.zw> 

South Africa's Eskom wants state to take on $7.2 bln of its debt

JOHANNESBURG (Reuters) - South Africa’s struggling state-run power firm
Eskom wants the government to take on 100 billion rand ($7.2 billion) of its
debt to shore up its balance sheet, Eskom Chairman Jabu Mabuza told the
Business Day newspaper.

Cash-strapped Eskom, which supplies more than 90 percent of South Africa’s
electricity, is struggling to emerge from a financial crisis and has
implemented power cuts over the past week because of coal shortages and poor
plant performance.

“Cost compression, revenue enhancement and debt relief are the core of the
turnaround strategy,” Mabuza told Business Day.

Eskom executives are meeting investors on a roadshow to London and the
United States this week. A financial market source in London told Reuters
that Mabuza had spoken to investors on the roadshow about the idea of
shifting 100 billion rand of Eskom’s debt onto the government’s balance
sheet.

However, South Africa’s finance ministry, which is at pains to trim the
country’s large budget deficit, said on Wednesday that it had not yet
received the debt proposal.

“The government’s policy stance on the funding of state-owned companies
remains that such funding must be done in a deficit neutral manner,”
Treasury spokesman Jabulani Sikhakhane said.

Eskom spokesman Khulu Phasiwe declined to elaborate on Mabuza’s comments,
saying the company’s turnaround plan was still the subject of discussions
with stakeholders in government.

Mabuza told a news conference last week that asset sales could not solve
Eskom’s problems and that a bailout or debt relief were preferable. At the
time, he said Eskom had discussed its turnaround strategy with the public
enterprises ministry and South African President Cyril Ramaphosa.

Ramaphosa has made reforming Eskom a priority since taking over from
scandal-plagued Jacob Zuma in February, but the scale of the financial
difficulties at the utility has meant that progress has been slow.

Eskom expects to make a pretax loss of more than 11.2 billion rand this
financial year.

($1 = 13.8394 rand)

S.Africa's private sector contracts at slower pace in Nov: PMI

JOHANNESBURG, Dec 5 (Reuters) - South African private sector activity shrank
again in November, albeit at a slower pace than the previous month, as firms
cut inventories to their lowest level in more than four years, a survey
showed on Wednesday.

The Purchasing Managers’ Index (PMI), compiled by IHS Markit, rose to 48.2
in November from 46.9 in October but stayed below the 50 mark which
separates expansions from contractions for the fourth straight month.

Four of the five sub-indexes in the survey were in contraction territory,
with stock purchases the hardest-hit at a 52-month low. Output shrank, but
at a slower pace than the previous month, while employment inched down to
50.0 from 50.2 in October.

“Firms will be glad to see the recent decline in activity soften in
November, even if this was the fifth successive month where the PMI was
below 50. Nevertheless, the current trend still suggests flat annual GDP
growth in Q4,” said IHS Markit economist David Owen.

Africa’s most industrialised economy climbed out of its first recession in
nearly a decade in the third quarter, posting quarter-on-quarter growth of
2.2 percent as manufacturing, agriculture and retailing offset a sharp slide
in mining output.

“Importantly, input prices rose at a far slower pace in November. This will
ease worries of stronger inflation and hence a further up-tick in interest
rates,” Owen added.

Tunisia's inflation stable at 7.4 pct in November

TUNIS (Reuters) - Tunisia’s inflation rate remained at 7.4 percent in
November, the third consecutive month at that figure, official data showed
on Wednesday.

Inflation has fallen from 7.5 percent in August and 7.8 percent in June.

In May, Tunisia’s central bank raised its key interest rate by 100 basis
points to 6.75 percent, the second hike in three months, to tackle
inflation.

Congo mining revenues jump 147 pct in first 9 months of 2018

KINSHASA (Reuters) - Democratic Republic of Congo collected $1.21 billion in
revenues from its mining sector over the first nine months of 2018, an
increase of 147.4 percent over the same period last year, finance ministry
data showed.

Revenues from the hydrocarbons sector rose 1.4 percent over that same period
to $120.11 million, according to the data seen by Reuters on Wednesday.

The two sectors together account for roughly 95 percent of Congo’s export
revenues. Congo is Africa’s leading copper producer and the world’s top
miner of cobalt, which is prized for its use in electric batteries.

Uganda central bank holds main lending rate at 10 pct

KAMPALA (Reuters) - Uganda’s central bank held its benchmark lending rate at
10 percent on Wednesday saying the outlook for inflation had improved.

Policymakers raised rates for the first time in three years in October,
citing concerns about rising inflationary pressures.

“(The) 12-month ahead inflation forecast has improved slightly, relative to
October forecasts,” Emmanuel Tumusiime-Mutebile, the bank’s governor, told a
news conference.

Core inflation, which the bank focuses on, edged down to 3.4 percent last
month from 3.5 percent the previous month. The rate was expected to peak at
between 6-6.5 percent in the second half of next year, lower than the
previous forecast, the governor said.

Kenya private sector activity slows slightly in November: PMI

NAIROBI, Dec 5 (Reuters) - Kenya’s private sector expanded at a slower pace
in November compared with the previous month, a survey showed on Wednesday.

The Markit Stanbic Bank Kenya Purchasing Managers’ Index(PMI) for
manufacturing and services fell to 53.1 in November from 54.0 the previous
month. A reading above 50.0 marks growth.

“Despite the Stanbic PMI dipping slightly in November, purchasing activity
remains solid,” said Jibran Qureishi, regional economist for East Africa at
Stanbic Bank.

Operating conditions for firms improved in the month, the survey found, with
respondents citing lower cost pressures as energy and food costs fell. But
growth in output and new orders fell slightly below October’s levels.

“The level of growth remained solid with anecdotal evidence showing the
continued impact of rising customer numbers on the market,” Markit said.

- Detailed PMI data are only available under licence from IHS Markit and
customers need to apply for a licence.

Kenyan central bank sets next rate-setting meeting for Jan. 28

NAIROBI (Reuters) - The Central Bank of Kenya’s Monetary Policy Committee
will hold its next rate-setting meeting on Jan. 28 2019, the bank said on
its website.

At its last meeting of 2018 this month, the bank held its benchmark lending
rate at 9.00 percent.

Cuba offers 3G mobile internet access to citizens

Cuba's population is to be offered internet access via a 3G mobile network
from later this week.

Telecom provider Etecsa said citizens would be able to start subscribing to
the service from Thursday.

Until now, locals have mostly relied on wi-fi hotspots and internet cafes
and the 3G service has been restricted to state-employed journalists and
foreign businesses among others.

This will change - but many will still be unable to afford the new
contracts.

Etecsa's packages range from a month's use of 600MB of data for 7CUC ($7;
£5.50) to 4GB for 30CUC.

Users get a bonus 300MB use of local .cu domain websites.

But the average state wage for the island's 11.2 million residents is the
equivalent of about $30 per month.

Looser limits

The launch marks a further relaxation of the government's restrictions on
online activity.

Until five years ago, access was largely limited to tourist hotels and
state-operated clubs.

But in 2013, the authorities began opening internet cafes.

In 2014, they began allowing mobile phone owners access to the state's Nauta
email service at a charge of 1CUC per megabyte - the price has since fallen
to the same charge for 50MB.

In 2015, the first wi-fi hotspot opened at a cultural centre. Hundreds of
other public spaces then followed.

And then in 2017, Etecsa began offering a limited number of home
connections.

Access to the new 3G service will be rolled out over a three-day period in
order to reduce the risk of it being overwhelmed with demand.

The order in which existing subscribers will be invited to join will be
determined by the first two digits of their mobile phone number.

However, Etecsa has not ruled out the possibility of glitches.

"Incidents could be experienced in certain areas," it has warned.

"If customers experience any problems, they should inform the company."

Nearly half of Cuba's population own a mobile phone although not all are
compatible with the radio frequency the service will use.

Cubans have long wanted to catch up with the rest of the world when it comes
to internet access.

Since Raul Castro stood down and was replaced as president by Miguel
Diaz-Canel, that has looked increasingly likely - at least on their mobile
phones.

The new president has an active Twitter account and several members of the
Council of State followed his lead recently.

Still, based on their experience, most Cubans are distrustful of major
announcements and unveilings until they can see real change for themselves.

The last time a 24-hour pilot for 3G was run, for example, other mobile
services such as SMS messaging went down.

They will want to see that mobile internet works well and is dependable
before deciding whether they can afford the packages.

Still the desire is there, especially among young people who never
considered it fair that they lagged so far behind their cousins elsewhere in
the world.

One electrical engineer told me he was exhausted with having to sit in hot
public squares to get online.

"Why did we have to be the offline island?" he said.

Internet censorship

To date, Cuba has generally allowed users to interact with most of the
internet if they could gain access.

A report by the US think tank Freedom House last year noted that the US
government-backed news site Marti Noticias and local blog 14ymedio were
blocked.

However, it added that foreign news sites - including the BBC and Spain's El
Pais - were available, as were social networks including Facebook and
Twitter.

Citizens can also use video chat services that allow them to keep in touch
with family members who have emigrated abroad.--bbc

UK economic growth 'stalls' as service sector slides

Growth in the UK's key services sector has hit its lowest level since July
2016, prompting fears of stagnation.

The purchasing managers' index (PMI) from IHS Markit/CIPS sank to 50.4 in
November, down from 52.2 in October. A figure above 50 indicates expansion.

"The survey results suggest that the pace of economic growth has stalled,"
said Chris Williamson, chief business economist at IHS Markit.

The services sector accounts for about 80% of the UK economy.

The last time the index was this low came in the immediate aftermath of the
UK's referendum vote to leave the European Union.

Earlier in the week, similar surveys of the manufacturing and construction
industries were less gloomy.

The manufacturing PMI showed a reading of 53.1 last month, higher than the
51.1 in October, while construction rose to 53.4 from 53.2 in October.

The service sector forms not only by far the largest part of the economy,
but typically its driving force.

Now that engine is close to stalling. Strip out July 2016, when firms were
grappling with the referendum result, and this survey implies activity in
the service sector is growing at its slowest rate for six years.

In fact, the report claims that if firms didn't have backlogs of work to
tackle, activity would have contracted last month. The prolonged uncertainty
over Brexit trading arrangements is part of the reason behind the inertia,
but so too is weaker global demand.

As the latest falls in US markets have implied, there are rising concerns
that growth in America - and elsewhere - may have peaked.

Whatever the future trading arrangements, businesses may find the level of
external demand is more challenging.

It's perhaps unsurprising that optimism among service companies is at its
lowest for more than two years, and that has filtered through into hiring
plans.

This survey - and its counterparts for the manufacturing and construction
sectors - suggests the economy may expand by as little as 0.1% this quarter,
which could mean the weakest growth across 2018 as a whole in the
post-crisis era.

"A contraction of service sector business activity in November was only
avoided by firms working through back-orders to an extent not exceeded since
2009," said Mr Williamson.

"As such, unless demand revives, a slide into economic decline at the turn
of the year is a distinct possibility."

Mr Williamson added that clarity in relation to Brexit arrangements was
"urgently needed to help ensure the current stalling of growth does not
translate into a downturn".

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said the
decline was "the clearest indication yet that Brexit uncertainty is draining
momentum from the economy".

He said predictions by the Bank of England's Monetary Policy Committee of
0.3% economic growth for the October-to-December period now looked "too
upbeat", adding: "While a small fall in GDP isn't likely, no one should rule
it out at this stage either."

Ruth Gregory, senior UK economist at Capital Economics, described the figure
as "thoroughly disappointing".

She added: "Unless there is a particularly strong bounce back in December,
GDP growth of 1.3% seems likely over 2018 as a whole, the weakest since the
financial crisis."--BBC

Ryanair compensation claims to go to court

The Civil Aviation Authority has said it is taking legal action against
Ryanair over its refusal to compensate thousands of UK-based customers.

Their flights were cancelled or delayed over the summer because of strikes
by Ryanair pilots and cabin crew.

The CAA says they are entitled to compensation under EU law.

However, Ryanair argues the strike action amounts to "extraordinary
circumstances" and that therefore, it does not have to pay.

More Ryanair passengers have put in compensation claims for cancellations or
delays to arbitration this year than any other airline.

Figures from the Alternative Dispute Resolution (ADR) service showed the
airline accounted for the largest proportion - 30% - of all appeals.

In the first nine months of 2018, it received 22,159 complaints, but only
processed 1,347 of 6,653 Ryanair cases.

Airports with worst flight delays revealed

Ryanair sacks staff who 'slept on floor'

According to the CAA, under EU legislation, passengers are allowed to make
an EU261 claim when flights are delayed by three hours or more, cancelled or
when they are denied boarding.

Ryanair, like other airlines, was signed up to abide by ADR decisions.

Ryanair has now told the CAA that it has terminated its agreement with ADR.

"As a result of Ryanair's action, passengers with an existing claim will now
have to await the outcome of the Civil Aviation Authority's enforcement
action," the CAA said.

'We had to check out two nights early'

Helen Derbyshire, 21, from Manchester, had to cut short her holiday in
Berlin in September with her sister Abigail, 18, when their return Ryanair
flight was cancelled because of strike action.

She has since attempted to claim compensation herself, as well as through a
claims company, Resolver, but Ryanair has refused.

She told the BBC: "We were really disappointed, because we'd been looking
forward to it all year.

"Ryanair offered us a flight back the following week, but due to commitments
with work and college, we had to fly back the next day. We also did not have
enough euros to stay at our hotel for an extra two nights.

"We were very upset, as we had saved for months for this holiday, and we
lost a lot of money on our hotel, as we had to check out two nights early.

"On top of this, we only had two full days in Berlin, out of the five we
should have had.

"We were very worried and not sure what to do. Ryanair told us not to ring
them, as they said the phone lines would be very busy, so we had to work it
out for ourselves.

"I am very unhappy about the service we received from Ryanair. I have
documents from Ryanair giving us two different stories about why they
cancelled our flight, and evidence that they have refused to give us any
money back."

Hard-working families

In response to the CAA's announcement, a Ryanair spokesperson said: "Courts
in Germany, Spain and Italy have already ruled that strikes are an
'exceptional circumstance' and EU261 compensation does not apply. We expect
the UK CAA and courts will follow this precedent."

Consumer rights organisations have welcomed the CAA's move.

Rory Boland, Which? travel editor, said: "Customers would have been outraged
that Ryanair attempted to shirk its responsibilities by refusing to pay out
compensation for cancelling services during the summer - which left
hard-working families stranded with holiday plans stalled.

"It is right that the CAA is now taking legal action against Ryanair on the
basis that such strikes were not 'extraordinary circumstances' and should
not be exempt, to ensure that the airline must finally do the right thing by
its customers and pay the compensation owed."--BBC

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Truworths

AGM

Boardroom, Prospect Park, 808 Seke Road

06/12/2018 (9am)

TSL

EGM

Head Office, 28 Simon Mazorodze Road, Southerton

07/11/2018 (10am )

Cassava 

shares list on the ZSE

11/12/2018

Unity Day

22/12/2018

Christmas Day

25/12/2018

Boxing Day

26/12/2018

New Years’ Day

01/01/2019

 <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
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
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for guideline purposes only and sourced from third parties.

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