Major International Business Headlines Brief::: 07 December 2018

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Major International Business Headlines Brief::: 07 December 2018

 


 

 


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

 


 

 


 

 

*  Fitch keeps South Africa's sovereign rating unchanged

*  Eskom bonds slide on debt restructuring talk

*  South African business confidence index rises in November

*  Steinhoff shares tumble after accounts, PwC probe delayed

*  Kenya's NIC Bank and Commercial Bank of Africa to explore merger

*  Bank Windhoek becomes first commercial lender in southern Africa to issue
green bond

*  Group Five shares plunge on $60 mln claim for Ghana power project

*  Stock markets slide as market sell-off continues

*  Huawei arrest: China demands release of Meng Wanzhou

*  Lyft prepares to list shares on stock market

*  O2 and Ericsson issue joint apology over data disruption

*  Tesco directors acquitted in fraud trial

*  Investor visa scheme halted in money laundering crackdown

*  Should we worry about Huawei?

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

                                      

Fitch keeps South Africa's sovereign rating unchanged

JOHANNESBURG (Reuters) - Ratings firm Fitch on Thursday kept South Africa
sub-investment grade credit rating steady at subinvestment and maintained
its stable outlook, but warned that low growth and rising debt of
state-owned firms posed a risk.

 

“South Africa’s ratings are weighed down by low growth potential, sizeable
government debt and contingent liabilities,” Fitch said in a statement. It
rates both Pretoria’s foreign and local currency debt at ‘BB+’, one notch
below investment grade.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Eskom bonds slide on debt restructuring talk

JOHANNESBURG (Reuters) - South Africa’s government is discussing
restructuring the debt of state-run utility Eskom but will only give details
of what it plans to do next year, Public Enterprises Minister Pravin Gordhan
said on Thursday, in comments which sent Eskom’s bonds tumbling.

 

The cash-strapped power firm said this week that it wanted the government to
take on 100 billion rand ($7.1 billion) of its debts, about a quarter of its
total borrowings of 420 billion rand. It is also eyeing a steep hike in
tariffs in 2019 from the energy regulator.

 

“That brings me to the last question about debt restructuring. That’s an
issue that is being discussed in government and some time in the New Year
government as a whole will give you some idea of where we are going,”
Gordhan told a news conference.

 

“It’s work in progress. We’re dealing with 400 billion rand of debt and its
not something you can deal with easily.”

 

“There is no possibility of haircuts,” Gordhan added, declining to elaborate
on which Eskom debt instruments could be restructured or the maturities of
those instruments.

 

Eskom’s bonds fell sharply in response to the talk of restructuring, with
its 2028 dollar-denominated bond sliding as much as 2.3 cents to an all-time
low.

 

The rand also slipped, adding to earlier losses to fall 2 percent to session
low of 14.1500 per dollar.

 

The idea of moving Eskom’s debt on to government’s balance sheet has
unnerved investors as it puts even more pressure on South Africa’s sovereign
credit ratings, already rated in sub-investment grade by two of the top
three agencies.

 

“Eskom poses a huge risk to the economy and the credit rating,” said
independent energy analyst Mike Levington.

 

“Moving 100 billion rand of the debt isn’t going to solve its systemic
problems. It’s ability to raise capital is fast diminishing,” Levington
said.

 

Africa’s most industrialised economy has experienced a week of nationwide
power outages, which Eskom has blamed on low coal supplies as well as
maintenance of its ageing fleet of power stations.

 

That has taken the shine off data showing the economy had emerged from
recession.

 

President Cyril Ramaphosa is at pains to kick-start economic growth by
luring foreign investment ahead of national elections expected in May next
year.

 

But the South African economy is set to grow well below 1 percent in 2018.
Growth could be dragged lower next year if power outages persist.

 

($1 = 14.1414 rand)

 

 

South African business confidence index rises in November

JOHANNESBURG (Reuters) - South Africa’s business confidence rose for a third
consecutive month in November, boosted by higher export and import volumes
and manufacturing output, a survey showed on Thursday.

 

The South African Chamber of Commerce and Industry’s (SACCI) monthly
business confidence index rose to 96.1 in November from 95.8 in October, the
business body said in a statement.

 

Three of the 13 sub-indices surveyed in November improved compared with
October, while three were unchanged and seven were negative, showing that
South African businesses are still under pressure on many fronts.

 

Investor sentiment remains cautious, despite data showing Africa’s most
industrialised economy expanded 2.2 percent in the third quarter, snapping
out of recession after a revised 0.4 percent contraction in the second
quarter.

 

“South Africa’s economy continues to face various limitations due to
inadequate growth, growing public debt, capital outflows, world trade
tensions, fiscal constraints and several socio-political challenges that
prevent optimal economic performance,” SACCI said in a statement.

 

President Cyril Ramaphosa is trying to revive the economy after a decade of
stagnation under former president Jacob Zuma.

 

Ramaphosa has unveiled a “stimulus package” and is seeking to boost
investment into the country.

 

 

Steinhoff shares tumble after accounts, PwC probe delayed

JOHANNESBURG (Reuters) - A probe into accounting irregularities at Steinhoff
International and the release of the retailer’s restated results have been
delayed, it said on Thursday, sending its shares down as much as 21 percent.

 

The company, engulfed in one of South Africa’s biggest corporate scandals,
said it had been forced to abandon plans to publish both its 2017 and 2018
financial statements by the end of January 2019, citing delays to a forensic
investigation being conducted by auditors PricewaterhouseCoopers (PwC).

 

The investigation is being carried out a year after the owner of brands
including France’s Conforama and Britain’s Poundland admitted to “accounting
irregularities”, sending its shares plunging and leaving it fighting for
survival.

 

Steinhoff said its group audited financial statements would now be released
by mid-April 2019, with the probe by PwC expected to be completed by the end
of February rather than the end of this year.

 

“Unfortunately, despite significant efforts being exerted by all parties, it
is now clear that the timeline for completing the group consolidated
financial reporting and audit process has shifted and it will not be
possible for all the work required to be finalised within the original
timeframe,” the company said in a statement.

 

Steinhoff shares were down 12.4 percent to 1.56 rand at 0735 GMT after
shareholders learned they will have to wait even longer to understand what
happened at the firm and what its remaining assets are truly worth.

 

PwC said in March it had sent around 3.3 million records, such as emails,
for analysis and the contents of laptops and mobile phones were being copied
by investigators in what it described as a complex investigation.

 

Regulators from South Africa, Germany and the Netherlands are combing the
evidence for clues and possible culpability in the spectacular fall from
grace of the sprawling retail empire.

 

Steinhoff’s December 2017 disclosure led to the resignation of CEO Markus
Jooste and chairman Christo Wiese, who had overseen the firm’s rapid
expansion over almost two decades.

 

The retailer said PwC’s final report would be made available to the company
shortly after the its conclusion.

 

The 2017 and 2018 financial statements of the company’s wholly owned
subsidiary, Steinhoff Investment Holdings Ltd, will be released shortly
after the group’s results, it added.

 

 

 

Kenya's NIC Bank and Commercial Bank of Africa to explore merger

NAIROBI (Reuters) - Kenya’s NIC Bank and Commercial Bank of Africa will hold
talks on a potential merger, to combine their separate expertise in retail
and corporate banking, they said in a joint statement on Thursday.

 

NIC is a mid-sized lender while CBA is ranked among the top banks in the
East African nation. The potential merger would be the first major deal
announced in the industry since the government capped commercial lending
rates in 2016.

 

“The boards believe that combining the business of two highly profitable
entities would create enhanced capacity through capital consolidation and
strong liquidity to capture strategic growth opportunities,” they said.

 

The transaction, which would be subject to shareholder and regulatory
approval, would allow both banks to invest in new technology, boost pro

 

 

 

Bank Windhoek becomes first commercial lender in southern Africa to issue
green bond

WINDHOEK (Reuters) - Bank Windhoek has issued Namibia’s first green bond to
finance eligible green projects and assets, the lender announced on
Thursday.

 

Namibia’s largest locally owned bank and its second largest lender will
become the first commercial lender in southern Africa to issue such a bond,
it said in a statement.

 

The bond, listed on the Namibia Stock Exchange, raised 66.60 million
Namibian dollars ($4.74 million) on a private placement basis.

 

It has a coupon rate of three-month Johannesburg Interbank Agreed Rate plus
150 basis points, according to Bank Windhoek treasury sales and
sustainability analyst Ruan Bestbier.

 

Bank Windhoek is a unit of the Capricorn Group, an investment holding
company with interests in banking, insurance and asset management in
Namibia, Botswana and Zambia.

 

“As a member of Capricorn Group, Bank Windhoek aims to become the green
financier of choice for sustainability projects in Namibia and in other
countries in which the group operates,” Bank Windhoek Managing Director
Baronice Hans said.

 

Green bonds are a growing category of fixed-income securities, which raise
capital for projects with environmental benefits.

 

Eligible projects in Namibia include renewable energy, energy efficiency and
resource efficiency, green buildings, sustainable waste management,
sustainable land use, clean transportation, sustainable water management and
climate change.

 

“The issuance of Namibia’s first green bond is testament to Bank Windhoek’s
vision to be the financial partner of choice, ultimately leading to positive
change in the country and the Southern African region,” said the bank’s
chief treasurer, Claire Hobbs.

 

($1 = 14.0380 Namibian dollars)

 

 

Group Five shares plunge on $60 mln claim for Ghana power project

JOHANNESBURG (Reuters) - Shares in South African engineering company Group
Five plunged more than 40 percent on Thursday after a customer’s $60.5
million compensation claim relating to the unfinished Kpone power plant in
Ghana.

 

Group Five, which began construction of the plant in 2015 but halted work
last month after Cenpower Generation Company terminated the contract for the
delay-plagued project, said the Ghanaian company was seeking to recover
costs to complete the project as well as alleged losses and damages.

 

“The group strongly disputes the amount claimed and the demand for its
payment, as the client themselves confirmed that construction on the plant
was complete, with only testing and commissioning to be performed,” a Group
Five statement said.

 

Group Five suffered losses of 1.3 billion rand ($93.69 million) in its
financial year to June 30, largely owing to the Kpone project.

 

The company in the midst of a restructuring in which it has closed multiple
unprofitable operations and cut 602 permanent staff.

 

Shares in the company were down 38.2 percent at 2.1 rand by 0820 GMT.

 

($1 = 13.8757 rand)

 

 

 

Stock markets slide as market sell-off continues

Stock markets in the US and Europe plunged on Thursday as fears about
US-China trade tensions and global growth continued to mount.

 

All three main Wall Street indexes fell more than 2%, though they regained
some ground later in the session.

 

In London the FTSE 100 tumbled 3.2%, or more than 200 points, to close
around 6,700 - its lowest level in two years.

 

Falls on European markets were even sharper, with Paris and Frankfurt both
shedding almost 3.5%.

 

Oil prices also sank, with Brent crude more than 3% lower.

 

Analysts said the arrest of Chinese telecoms giant Huawei's chief financial
officer in Canada had revived worries over the US's trade war with China.

 

 

The renewed falls on Wall Street came as trading resumed after Wednesday's
stock market closure to mark the funeral of former President George HW Bush.

 

The downturn quashed hopes that the markets might return to health after
losses on Tuesday, when the Dow Jones index finished down 3%.

 

On Thursday, concerns about oil prices, trade tensions and slowing growth
sparked steep losses at financial, energy and materials companies in the US.

 

Worst-hit sectors on the FTSE 100 included miners, oil companies, carmakers
and tech stocks, with mining firms Antofagasta and Glencore among the
biggest losers.

 

Earlier, Asian markets had also fallen, with Tokyo's Nikkei index shedding
1.9% and the Hang Seng in Hong Kong down 2.5%.

 

 

The US stock market is having another ugly day.

 

Coming up with culprits for the most recent panic isn't hard.

 

Investors fear the trade war between China and the US will escalate. They
worry America's central bank will raise interest rates too far. And they're
concerned about Britain's exit from the European Union. All factors that
could hurt company profits.

 

The tougher question to answer is where the market is headed. Will it keep
going down or bounce back?

 

Many on Wall Street are describing the recent stock turbulence as a market
correction - defined as a drop of at least 10% from a recent high.

 

How long it lasts depends on what investors perceive are the prospects for
global economic growth.

 

And right now the psychology of the markets appears fragile.

 

Oil prices fell on Thursday as traders waited for news from the meeting of
Opec oil-producing nations in Vienna, with some member states keen to agree
on a production cut to drive up prices.

 

Members tentatively agreed to cut output but were waiting for a commitment
from Russia, which is not in the cartel, before making any firm decisions,
according to insiders.

 

Investors were also reacting to new figures for the US trade deficit, which
measures the difference between imports and exports of goods and services.

 

That gap increased to $55.5bn in October - the highest level in a decade -
as major markets including China, the European Union and Mexico purchased
fewer US products.

 

All three markets have hit US goods with new import duties in retaliation
for tariffs imposed by the Trump administration.

 

Laith Khalaf, senior analyst at Hargreaves Lansdown, said: "The arrest of
Huawei's CFO has reignited fears that trade reconciliation between the US
and China may not be forthcoming any time soon.

 

"The market is spooked by the damage a continuing trade war could do to
global economic prospects, and that's hitting share prices in the UK and
overseas. "

 

Norman Villamin, chief investment officer at Switzerland's Union Bancaire
Privée, said the US-China clash represented much more than just a tussle
over trade.

 

"It's not about trade - it's about who is going to be the economic and
political leader of the world in 10 to 20 years from now. It's about tech,
and who is going to dominate that landscape," he said.--bbc

 

 

 

Huawei arrest: China demands release of Meng Wanzhou

China is demanding the release of telecoms giant Huawei's chief financial
officer, who has been detained in Canada.

 

Meng Wanzhou, the daughter of the company's founder, could face extradition
to the US.

 

She was arrested in Vancouver on 1 December, but the news was not made
public at her request.

 

The charges remain unknown but the US has been probing Huawei over possible
violation of sanctions against Iran.

 

China says her detention is possibly a rights abuse.

 

Ms Meng has sought a publication ban on the details of the arrest, which has
been granted by the courts.

 

Huawei said it was "not aware of any wrongdoing by Ms Meng".

 

Should we worry about Huawei?

Why hasn't the UK blocked Huawei?

Huawei in the crosshairs of a trade war

Huawei is one of the largest telecommunications equipment and services
providers in the world, recently passing Apple to become the second-biggest
smartphone maker after Samsung.

 

European shares hit a two-year low and indexes across Asia dropped sharply
following the arrest, which analysts said revived worries over the US-China
trade war.

 

How has China responded?

A Chinese foreign ministry spokesperson told reporters: "The detention
without giving any reason violates a person's human rights." 

 

 

"We have made solemn representations to Canada and the US, demanding that
both parties immediately clarify the reasons for the detention, and
immediately release the detainee to protect the person's legal rights."

 

Beijing has itself frequently been accused by rights groups of rights abuses
including unexplained detentions.

 

However, concerns the arrest would affect the 90-day tariff truce negotiated
between the two nations at the G20 have not yet materialised. China
announced in a regular press briefing on Thursday that it would
"immediately" implement the measures agreed.

 

It also coincides with moves to restrict the use of Huawei technology in
Western countries. The US, Australia and New Zealand have blocked the use of
the Chinese firm's equipment in infrastructure for new faster 5G mobile
networks.

 

Canada's ministry of justice said a bail hearing for Ms Meng had been set
for Friday.

 

The gloves are off

 

It is hard to overstate the symbolism and significance of this event. Huawei
is the crown jewel of Chinese tech and Ms Meng is effectively its princess.

 

Even though it's still not clear what the charges against her are, this is
not simply a case about the arrest of one woman, or just one company.

 

This arrest could materially damage the relationship between the US and
China at possibly one of the most sensitive times between the two countries
in their long and torrid history.

 

The gloves are off. Things have taken a dramatic turn for the worse.

 

What could be behind it?

US media reported that Huawei is under investigation for potential
violations of US sanctions against Iran.

 

One report in the New York Times said the US commerce and treasury
departments had subpoenaed the firm over suspected violation of sanctions
against both Iran and North Korea.

 

US lawmakers have repeatedly accused the company of being a threat to US
national security, arguing that its technology could be used for spying by
the Chinese government.

 

Meanwhile, US National Security Adviser John Bolton said on Thursday that he
had known in advance about Ms Meng's arrest.

 

He told National Public Radio that he didn't know if President Donald Trump
had also been aware.

 

In a statement, Huawei said it had complied with "all applicable laws and
regulations where it operates, including applicable export control and
sanction laws and regulations of the UN, US and EU."

 

The arrest is a top trending topic on Chinese social media, BBC Monitoring
says, with many users criticising the US and Canada for what they call "low"
and "bullying" tactics.

 

Why is Huawei a concern to the West?

Some Western governments fear Beijing will gain access to fifth-generation
(5G) mobile and other communications networks through Huawei and expand its
spying ability, although the firm insists there is no government control.

 

The US has brought a number of legal cases against Chinese technology firms,
with accusations such as cyber-security theft and violations of Iran
sanctions.

 

Donald Trump last month reinstated all the US sanctions on Iran that had
been removed under a 2015 nuclear deal.

 

Mr Trump had been fiercely opposed to the deal, which saw Iran limit its
controversial nuclear activities in exchange for sanctions relief.--bbc

 

 

 

Lyft prepares to list shares on stock market

Ride-hailing firm Lyft has moved closer to listing its shares on the stock
market by filing paperwork with US authorities for an initial public
offering (IPO).

 

The firm said the number of shares to be offered and the price range had not
yet been determined.

 

However, sources told Reuters that the IPO would take place in the first
half of next year.

 

Lyft's main rival, Uber, is also expected to float next year.

 

Lyft was launched in 2012 by technology entrepreneurs John Zimmer and Logan
Green, three years after Uber was founded.

 

It remains the smaller company, with a limited international presence. The
firm is thought to be worth about $15bn (£11.75bn), while Uber is valued at
about $120bn.

 

However, Lyft's profile has risen over the last two years, as its larger
rival was hit by controversy surrounding its aggressive corporate culture
and data collection practices.

 

Lyft now accounts for almost 30% of rideshare revenues in the US, up from
about 23% at the start of 2017, according to research firm Second Measure.

 

The firm reportedly earned more than $1bn in revenue in 2017, although it
continues to be loss-making.--bbc

 

 

 

O2 and Ericsson issue joint apology over data disruption

O2 and its mobile network equipment supplier Ericsson have issued a joint
apology to the millions of customers hit by disruption to its data services.

 

O2 chief executive Mark Evans said the firm would work with Ericsson through
the night to resolve the problems.

 

Mr Evans said Ericsson had given assurances that a full service would be
restored by Friday morning.

 

Ericsson UK boss Marielle Lindgren said the "faulty software" that had
caused the issues was being decommissioned.

 

Ms Lindgren added: "Our priority is to restore full data services on the
network by tomorrow morning. Ericsson sincerely apologises to customers for
the inconvenience caused."

 

O2 has 25 million customers and also provides services for the Sky, Tesco,
Giffgaff and Lycamobile networks, which have another seven million users.

 

Services such as bus timetable information have also been affected, while
many businesses faced disruption.

 

In the joint statement, Mr Evans said: "I want to let our customers know how
sorry I am for the impact our network data issue has had on them, and
reassure them that our teams, together with Ericsson, are doing everything
we can.

 

"We fully appreciate it's been a poor experience and we are really sorry."

 

Ericsson said there had been network disruption for customers in multiple
countries.

 

Knock-on effects

Earlier Ericsson president Börje Ekholm said network services on most of the
affected networks had been restored on Thursday.

 

"We are working closely with the remaining customers that are still
experiencing issues", he said.

 

Japan's Y!Mobile network, owned by Softbank, was also affected by the
outages.

 

The difficulties in the UK were first reported at about 05:30 on Thursday.

 

Network down: how people are coping without a signal

 

Spain's Telefonica owns O2, which has the UK's second-largest mobile network
after EE, which is now part of BT.

 

The company has said voice calls are not affected by the problem, but some
O2 customers say they cannot make calls or send texts either.

 

The outage is having knock-on effects for other services that use the O2
network, including Transport for London's electronic timetable service at
bus stops, which has stopped working.

 

William Webb, a tech consultant and former Ofcom director, said it was
unusual to take this long to resolve the problem.

 

Tom Morrod at market research firm IHS Markit said data was increasingly
important to consumers, with half of UK mobile users prioritising internet
connectivity above calls and texts.

 

"As well as the inconvenience to consumers and the associated frustration,
having a major network out of action creates productivity challenges for
businesses. Many businesses will have employees commuting or out in the
field that have lost work time today," he said.

 

One O2 customer, Allison Rose-Mannall, from Norwich, is an insulin-dependent
diabetic who relies on her mobile and is unable to get to a landline.

 

"I'm disabled ... I'm in a wheelchair," she told the BBC. "So having no data
but also no calls as well means I can't contact anyone if I have a fall or
if I need anything."

 

Lynsey Greaves runs a company in Doncaster providing home visits to the
elderly and vulnerable. Her 130 staff all rely on O2 phones to access rotas,
schedules, names and addresses. Since 05:30 she's been calling in extra
office staff to give out the information for each visit over the phone.

 

"There are nine of us trying to sort it now," she said. "It's been a
nightmare."

 

Luke Stagg is trying to run a plumbing business via his phone, but he can't
get through to customers or use his sat nav.

 

"That's a whole day wasted," he says. "I'll be seeking to recoup my losses,
especially as a business customer."

 

Mischa Bittar is also a plumber. He said he had been "unable to contact any
of my engineers or customers via email, unable to use our mobile systems to
contact any engineers at all, so everyone's just had to down tools today".

 

"A lot of money lost and the first thing I know about it is via the BBC
website, no contact from O2 at all, disappointing," he added.

 

Omeran Amirat said he had been a loyal O2 customer for a long time. He said
he had bids on eBay on Thursday morning but he could not do them because the
O2 network was down. "It's Christmas, the budget's tight for me, there were
presents I was supposed to be buying for my daughter and my son on eBay
today. They've gone now."

 

He said he had lost the bids and "O2 are responsible".

 

Can I claim compensation?

Customers of O2 will be able to claim for any out-of-pocket expenses that
resulted from being without their phone, according to consumer expert Helen
Dewdney.

 

Ms Dewdney, who writes a blog called The Complaining Cow, said users should
be able to claim under the Consumer Rights Act 2015, which states that
services should be carried out with reasonable skill and care.

 

That means customers would be able to claim a refund for what they would pay
on a contract for the time they were without the use of the phone. They
could also claim consequential loss due to breach of contract, for example,
if they incurred bank charges because they were unable to move their money,
or the cost of having to use a payphone.

 

This must be a genuine loss which can be proved with evidence. So, a taxi
driver might be able to prove they lost out on fares owing to the shutdown,
but other workers trying to claim a lost day of employment would struggle.

 

Ms Dewdney suggested phone users calculated their losses, and wrote to O2
with the evidence. They should state what they wanted as redress and mention
the Consumer Rights Act 2015.

 

If they felt the response was unsatisfactory, it could be referred to
Ombudsman Services: Communications of which O2 is a member. The customer
would need to ask for a deadlock letter or wait eight weeks from the
beginning of the complaint.--bbc

 

 

Tesco directors acquitted in fraud trial

Two former Tesco directors have been acquitted of charges of fraud and false
accounting after the judge dismissed their case due to lack of evidence.

 

Chris Bush, former UK managing director, and John Scouler, former UK food
commercial director, were accused of manipulating figures that resulted in
Tesco's profits being overstated.

 

In autumn 2014, Tesco said that profits had been overstated by about £250m.

 

Both Mr Bush and Mr Scouler had denied the charges.

 

Benefits

After their acquittal, Mr Bush said: "While I am delighted that my innocence
has finally been established, it is troubling that Mr Scouler and I were
ever charged.

 

"I am now looking forward to getting home and spending Christmas with my
family."

 

It was alleged the pair were aware that income was being wrongly included in
the company's financial records to meet targets and make Tesco look
financially healthier than it was.

 

Mr Scouler, 50, from High Wycombe and Mr Bush, 52, of St Albans each denied
one count of fraud and another of false accounting. At the time they had
benefits packages with Tesco of more than £1m each.

 

Tesco found that its profits had been overstated due to early recognition of
payments from suppliers whose goods were sold in its stores, as well as
delays in charging costs.

 

The defendants had been on trial for eight weeks at Southwark Crown Court.

 

A first trial had been abandoned in February, shortly before the jury was
due to retire to consider its verdict.

 

A third defendant, Carl Rogberg, 51, a former Tesco UK finance director, was
not included in the retrial, with the SFO saying it was now considering
whether to pursue a retrial of Mr Rogberg.

 

'Weak' case

The acquittal came after trial judge Sir John Royce dismissed the case
brought by the Serious Fraud Office (SFO), halting the trial after the
prosecution presented its case.

 

"I concluded in certain crucial areas the prosecution case was so weak it
should not be left for a jury's consideration," Judge Royce said.

 

The SFO tried to have the decision overturned at Court of Appeal on
Wednesday, but was unsuccessful and the men were cleared by Court of Appeal
judges.

 

Richard Sallybanks, partner at BCL Solicitors representing John Scouler,
said: "We are delighted that Mr Scouler leaves court today knowing that the
judge, having heard the entirety of the prosecution evidence, reached the
firm conclusion that he had no case to answer.

 

"That decision was obviously correct yet the SFO chose to pursue an appeal
which was rejected yesterday."

 

Ross Dixon, partner at Hickman and Rose, and solicitor for Mr Bush, said:
"The trial judge heard from 30 witnesses and considered thousands of pages
of written evidence; he reached the firm conclusion that there was no case
for the defendants to answer.

 

"The Court of Appeal has now affirmed that decision and refused the SFO
permission to appeal. Quite how the SFO managed to so fundamentally
misunderstand the effect of its own evidence demands an answer."

 

The trial jury was discharged and exempted from jury service for 20 years.

 

It's one thing for a jury to deliver not guilty verdicts in a multimillion
pound fraud trial.

 

But for a judge to call a halt to the proceedings after hearing the
prosecution's case is far more unusual.

 

This outcome now raises more questions than answers.

 

And it's the Serious Fraud Office (SFO) that is under the spotlight for its
handling of this case.--bbc

 

 

Investor visa scheme halted in money laundering crackdown

Ministers are halting a "gold-plated" visa scheme offering foreign investors
a fast-track to settling in the UK, as part of a crackdown on financial
crime.

 

Tier 1 investor visas were introduced in 2008 to encourage rich people from
outside the EU to invest in the UK.

 

A £2m investment bought a visa and indefinite leave to remain after five
years. But concerns were raised the scheme was being used to launder money.

 

Its suspension will end after an audit process is introduced, ministers say.

 

"We will not tolerate people who do not play by the rules and seek to abuse
the system," said Immigration Minister Caroline Nokes, announcing the
suspension would come into effect at midnight on Friday.

 

"That is why I am bringing forward these new measures which will make sure
that only genuine investors, who intend to support UK businesses, can
benefit from our immigration system."

 

Reality Check: Who's allowed an investor visa?

Are golden visas losing their sparkle?

The number of granted Tier 1 investor visas peaked in 2014 (1,172). Last
year the figure stood at 350, with the highest numbers going to Chinese and
Russian investors. 

 

The scheme previously required that applicants had a UK bank account and
were of "good character".

 

>From next year, independent, regulated auditors will assess applicants'
financial and business interests and check they have had control of the
funds for at least two years, the Home Office said.

 

Successful candidates have been eligible for visas lasting three years and
four months, with two-year extensions available.

 

In 2011, the government hoped to attract the "brightest and best" by
allowing investors to bring forward the date at which they could apply for
settled status. Spending £10m in the UK cut the wait to just two years.

 

However, three years later, the Migration Advisory Committee said the scheme
brought little economic benefit for British citizens because most applicants
were buying gilts to qualify - so were effectively loaning the government
money, rather than investing in the UK.

 

The Home Office said in future there will be a provision for pooled
investments, supported by the government, to back projects with a "clear
economic benefit to the UK" such as supporting small and medium-sized
businesses.--bbc

 

 

Should we worry about Huawei?

Huawei, the Chinese telecoms giant, has hit the headlines over the arrest of
the founder's daughter in Canada for extradition to the United States.

 

But the firm, which manufactures a range of technology from network
equipment to mobile phones, is on the agenda for other reasons too.

 

Some Western governments have blocking telecoms companies from using Huawei
gear in new communications networks, citing security concerns.

 

So far the UK has held back from any formal ban. So does the firm pose a
threat?

 

What is Huawei?

The company started out making equipment for mobile phone networks and has
grown rapidly, eclipsing the likes of Nokia and Ericsson, to become a global
leader.

 

More recently it has started making smartphones as well and has captured
about 15% of the global market, second only to Samsung and ahead of Apple.

 

Huawei finance chief arrested in Canada

Why has UK not blocked Huawei?

The firm's founder Ren Zhengfei, a former People's Liberation Army officer,
started Huawei in 1987. It's based in Shenzhen, Guangdong and is owned by
80,000 of its 180,000 employees.

 

So is Huawei a security threat?

The US points to Mr Zhengfei's military background and its growing global
role to argue it represents a risk to national security.

 

In principle, controlling the technology that sits at the heart of vital
communications networks gives Huawei the capacity to conduct espionage or
disrupt communications during any future dispute, particularly as more
things, from autonomous vehicles to domestic appliances become connected to
the internet. Countries using Huawei equipment monitor such risks carefully.

 

But the US also points more generally to China's National Intelligence Law
passed in 2017 that says organisations must "support, co-operate with and
collaborate in national intelligence work".

 

As a result, the US, Australia and New Zealand have all blocked local firms
from using Huawei to provide the technology for next-generation 5G mobile
networks.

 

That's three of the five so-called "Five Eyes" intelligence sharing
community. A fourth, Canada is reviewing its relationship with the firm.

 

The UK has not taken a position, although it is also coming under pressure
from the US to do so.

 

Why hasn't the UK blocked Huawei?

The UK government has admitted to "strains" in the relationship with Huawei.
The body tasked with overseeing internet security in Britain, the National
Cybersecurity Centre, has asked Huawei to fix problems that pose "new risks"
to the network.

 

Moreover, Alex Younger, the head of the UK's intelligence service MI6, has
suggested that "some decisions" lie ahead over Huawei's role because 5G
networks will make it harder to monitor security.

 

BT has announced it is in the process of removing Huawei's equipment from
the core of its existing 3G and 4G mobile operations and will not use the
Chinese company's gear in central parts of the next 5G network.

 

But Huawei has been providing technology to UK firms for more than a decade
and Britain is keen to maintain a good relationship with China on trade and
investment as it prepares for Brexit.

 

Most of the country's mobile networks - Vodafone, EE and Three - have
already been working with Huawei to prepare their 5G offerings and it might
not be easy to change that at short notice.

 

What does Huawei say?

The company is keen to portray itself as a firm with no ties to the Chinese
government. It says it prioritises safety and security when supplying
technology and that at least some of the hostility towards it is because the
firm poses a competitive threat.

 

In the past the Chinese government has also argued that moves to block the
firm's products amount to "protectionism" and "discriminatory practices".

 

The new hostility towards Huawei comes against a backdrop of heightened
tensions between the US and China, with President Trump accusing Beijing of
unfair trade practices and of facilitating the theft of intellectual
property from US firms.

 

Furthermore as several countries simultaneously plan to introduce faster 5G
networks, the stakes are high for firms that win contracts.

 

Emily Taylor at Chatham House said there was a "standards war" going on
behind the scenes.

 

"I think the trade advantage from setting standards that favour your own
domestic suppliers' technologies also plays a part in this," she told the
BBC.--bbc

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


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
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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