Major International Business Headlines Brief::: 18 December 2018

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Major International Business Headlines Brief::: 18 December 2018

 


 

 


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

 


 

 


 

 

*  Zimbabwe inflation soars to new 10-year high of 31 percent

*  South African retailer Edcon in talks with landlords about reducing rentals

*  Transfer of Eskom's debt to South African government credit neutral - Moody's

*  Foreign direct investment in South Africa down in Q3, portfolio flows up

*  Arms firm Denel's accounts littered with flaws - South Africa's Auditor General

*  South Africa's Eskom evaluating bids for mortgage business

*  South Africa's Naspers leads $540 mln investment in Indian tech startup

*  Zambia denies White House claim China taking over power utility

*  Kenyan shilling firm against the dollar

*  Canadian regulator to fine Glencore-controlled miner over Congo - WSJ

*  France to introduce digital tax in new year

*  Asos profits hit by fashion price-cutting

*  1MDB: Malaysia charges Goldman Sachs and two bankers

*  Bloodhound supersonic car project saved

*  Energy firms SSE and Npower scrap merger plan

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

                                      

Zimbabwe inflation soars to new 10-year high of 31 percent

HARARE (Reuters) - Zimbabwe’s inflation soared to a fresh 10-year high of 31.01 percent year-on-year in November from 20.85 percent in October after prices of basic goods spiked, amid an acute shortage of dollars that has made imports expensive.

 

On a monthly basis, prices increased by 9.2 percent in November compared to 16.44 percent in October.

 

Zimbabwe adopted the U.S. dollar in 2009 after its own currency was made worthless by hyperinflation.

 

But Zimbabweans have watched as the dollars in their bank accounts, known as ‘Zollars’, have lost value against cash U.S. dollars. That is because there are more Zollars in banks than actual U.S. cash dollars available, analysts say.

 

Central bank data shows that some $10 billion were being held as electronic dollars in bank accounts but less than $250 million in cash dollars.

 

On the black market, one needs $3.50 to purchase $1 in cash, a situation which has seen some businesses charging multiple prices for their goods.

 

Zimstats said prices of food, including bread, of beverages and clothes, had pushed the consumer price index higher.

 

The finance minister said in a budget statement last month that inflation would end the year at 25 percent before falling to single digits in 2019.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

South African retailer Edcon in talks with landlords about reducing rentals

JOHANNESBURG (Reuters) - South African retailer Edcon is in talks with shopping mall owners about a two-year 41 percent rent reduction in exchange for a small stake in the company, the Sunday Times reported.

 

Edcon has been grappling with an over-leveraged capital structure for several years, after troubles in its credit business in 2014 coincided with an economic slowdown and weak consumer spending at home.

 

Bain Capital, which bought the 80 year old company more than a decade ago in a highly leveraged deal, gave up equity control last year to creditors that included fund manger Franklin Templeton, local lenders Standard Bank and Absa.

 

Citing a letter addressed to Edcon’s landlords, the Sunday Times reported that Edcon was seeking a two-year 41 percent “rent holiday” in exchange for a 5 percent share in the business.

 

Edcon confirmed in a statement that it was it was in talks with some shopping mall owners about a proposal to reduce rents.

 

“This and other elements of a proposed agreement are in the final stages of resolution and no further commentary can be added at this stage,” it said.

 

Edcon, which vies for market share with TFG , Truworths and international chains such as Zara and H&M, is one the biggest names in South African retail, employing more than 14,000 permanent full-time staff in over 1,100 stores, according to its website.

 

 

Transfer of Eskom's debt to South African government credit neutral - Moody's

JOHANNESBURG (Reuters) - Power utility Eskom’s request for government to take up 100 billion rand ($7 billion) of its debt could cause the country’s overall debt ratio to jump two percentage points from the current 55.8 percent, ratings agency Moody’s said on Friday.

 

Moody’s, the last of the top three ratings firms to still rate Pretoria’s debt at investment grade, said in a research note dated Dec. 12 that granting Eskom’s request would have a neutral credit impact and was unlikely to accelerate the firm’s long-promised turn-around strategy.

 

Last week, the cash-strapped power firm said it wanted the government to take on 100 billion rand of its total borrowings of 420 billion rand, a move President Cyril Ramaphosa on Thursday said was not an option as it would cause the country’s debt to spiral.

 

“The transfer will increase South Africa’s debt/GDP ratio by around two percentage points from the 55.8 percent envisioned for fiscal year 2019,” Moody’s said, noting that it does not currently include the firm’s government guaranteed debt in the overall measure of debt.

 

“If the debt transfer grants further measures like efficiency savings and/or tariff increases requested by the company in October that reduce this contingent liability risk, the overall credit impact of the debt transfer could be neutral,” Moody’s said.

 

The agency however said this was unlikely as Eskom had already delayed its turnaround plan on numerous occasions, and that the utility was unlikely to implement it before general elections due mid-2019.

 

($1 = 14.3634 rand)

 

 

Foreign direct investment in South Africa down in Q3, portfolio flows up

PRETORIA (Reuters) - South Africa’s foreign direct investment inflows fell by nearly 3 billion rand ($209.6 million) in the third quarter, the central bank said on Friday in its quarterly bulletin, as foreign firms sent less money to local subsidiaries.

 

South Africa’s direct investment liability fell to 27.9 billion rand from 31.6 billion, the Reserve Bank (SARB) said.

 

Portfolio investments rose to 17.9 billion rand from 16.6 billion in the months from July to September.

 

“The larger debt security inflow could be attributed to the issuance of foreign currency-denominated bonds by a public corporation,” the bank said in the publication.

 

Since replacing Jacob Zuma as president in February, Cyril Ramaphosa has vowed to up foreign investment to kick-start an economy that only recently climbed out of a recession triggered largely by low business confidence linked to policy uncertainty.

 

Ramaphosa appointed a team of business and finance experts in April to scour the globe for $100 billion in investment.

 

In October at an investment summit in Johannesburg, Ramaphosa said the country had already secured investment commitments of around $20 billion.

 

($1 = 14.3137 rand)

 

 

Arms firm Denel's accounts littered with flaws - South Africa's Auditor General

JOHANNESBURG (Reuters) - Shoddy and incomplete accounting at South Africa’s troubled state-run arms firm Denel left the country’s Auditor General unable to make a judgement on the soundness of its most recent financial statements, according to the firm’s annual report.

 

In the report the Auditor General listed more than 30 problems at Denel, which reported a 1.7 billion rand ($118 million) loss for 2017/18 and recently fired its Chief Financial Officer over allegations of misconduct, that left it unable to offer an opinion on its accounts.

 

Reforming struggling state-owned firms is a top priority for President Cyril Ramaphosa, who replaced former president Jacob Zuma one year ago and has promised to restart South Africa’s sluggish economy and clean up public institutions.

 

But ongoing problems at public enterprises like Denel and power utility Eskom - both embroiled in corruption scandals - undermine confidence in him ahead of elections in May.

 

The list of issues outlined by the Auditor General at Denel included a failure to apply international accounting standards and “basic” financial management disciplines, a lack of any information on fruitless or wasteful spending and the absence of an effective system to recognise irregular expenditure.

 

The Auditor General said it “was unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion.”

 

In the report, Denel’s Chairwoman Monhla Hlahla and its acting CEO Michael Kgobe wrote that they received the auditor’s conclusions with “grave concern” and had launched an audit turnaround plan to address the issues raised.

 

The main opposition Democratic Alliance (DA) party said the report had been slipped under the radar.

 

“The DA reiterates its call that Denel and other struggling state-owned entities be placed under business rescue in preparation of partial or full privatisation to suitable partners,” the party said in a statement.

 

($1 = 14.3597 rand)

 

 

South Africa's Eskom evaluating bids for mortgage business

JOHANNESBURG (Reuters) - South Africa’s cash-strapped power utility Eskom is evaluating bids for its mortgage lending business, a spokesman said on Friday, as the company works to shore up its balance sheet against a backdrop of operational woes.

 

State-run Eskom is struggling to keep the lights on in Africa’s most advanced economy, and has been implementing frequent controlled power cuts to prevent the grid from collapsing under the weight of electricity demand.

 

“Eskom is currently evaluating bids for the sale of its non-core subsidiary Eskom Finance Company (EFC),” the utility’s spokesman Khulu Phasiwe said on Twitter, adding the firm could not give further details until the process was completed.

 

“The proposed sale of EFC has been on the cards for years,” Phasiwe said.

 

The sale of Eskom’s mortgage business, which specialises in lending to employees, would be the first major privatisation deal under President Cyril Ramaphosa, who has made revamping state-owned firms like Eskom a top priority.

 

The government said as far back as 2015 that it was considering divesting some Eskom assets, but the proposal was vehemently opposed by trade unions.

 

Eskom, which supplies more than 90 percent of South Africa’s power, faces a funding crunch as it races to bring new power plants online to stave off an electricity crisis.

 

The company is also battling with coal shortages and poor plant performance.

 

Ramaphosa appointed a task team on Friday to advise the government on how to resolve Eskom’s operational and financial problems, including cutting its debt burden.

 

The task team includes former Eskom chief executive officer Brian Dames.

 

Its work will address “the government’s concern that the lack of adequate electricity has a negative impact on economic recovery and that there is a need for intervention in the short and medium term to restore the supply-demand balance”, the presidency in a statement.

 

“Appreciating the urgency of the matter, the President has requested the task team to submit initial recommendations by the end of January 2019,” it added.

 

Last week, the power firm said it wanted the government to take on 100 billion rand ($6.95 billion) of its total borrowings of 420 billion rand, a move Ramaphosa said on Thursday was not an option as it would cause the country’s debt to balloon.

 

($1 = 14.3963 rand)

 

 

South Africa's Naspers leads $540 mln investment in Indian tech startup

JOHANNESBURG (Reuters) - Naspers and Canada’s state pension fund have invested $540 million in Indian educational technology startup Byju’s, the South African internet giant said on Monday.

 

Bengaluru-based Byju’s launched a learning app in 2015 that offers tools for school students in India, a country with the world’s largest number of children in primary education.

 

The latest investment values the firm at around $3.6 billion, Indian media reported.

 

“The investment will drive the Byju’s team to further innovate, explore and set new benchmarks for tech-enabled learning products,” Naspers said in a statement.

 

“The company has plans for international market expansion and will make bold investments.”

 

Byju’s has over 30 million registered students, Naspers said, without giving details of the company’s financial performance.

 

Founded more than 100 years ago, Naspers has transformed itself from a newspaper publisher into an $87 billion empire, thanks to its one-third stake in Chinese tech giant Tencent.

 

Naspers shares weren’t trading on Monday due to a public holiday in South Africa.

 

The Canada Pension Plan Investment Board (CPPIB), one of the world’s biggest investors, is expanding its interests in India due to the country’s young population and growing middle class, its chief executive said last week.

 

Other investors in Byju’s include Tencent and the Chan Zuckerberg Initiative, a charity founded by Facebook Chief Executive Mark Zuckerberg and his wife, Priscilla Chan.

 

 

Zambia denies White House claim China taking over power utility

LUSAKA (Reuters) - Zambia has denied claims by a White House official that China is about to take over its state power utility to recover $6-10 billion debt, noting the utility was never provided as collateral and its debt to Beijing was only $3.1 billion.

 

U.S. National Security Advisor John Bolton said on Thursday that China’s quest for more power in Africa was evident in nations like Zambia, and China was poised to take over Zambia’s utility company Zesco to collect the debt.

 

Zambia’s presidential spokesman Amos Chanda told Reuters the figure of between $6-10 billion given by Bolton was wrong. Zambia’s total external debt was now $9.7 billion including $3.1 billion owed to China, he said.

 

“It is regrettable that such information can come from such a high-ranking official. In fact, Zesco is not within the scheme of Zambia’s debt to China,” he added.

 

Chanda said Zambia valued its relations with both China and the US and would not deal with either of them exclusively.

 

Bolton had called the business practices of China and Russia in Africa “corrupt” and “predatory” and said the United States planned to counter their economic and political influence. [L1N1YI10A]

 

In June, Zambia decided to delay all planned borrowing indefinitely, slowing down the accumulation of new debt amid worries about the risk of debt distress.

 

President Edgar Lungu said last month Zambia is committed to improving the transparency of its debt management and will ensure that debt levels remain sustainable.

 

The IMF rejected Zambia’s borrowing plans in February, saying they risked making its debt load harder to sustain.

 

Finance minister Margaret Mwanakatwe said last month the government plans to send a delegation to China by the end of this year to discuss Zambia’s debt and debt restructuring.

 

 

Kenyan shilling firm against the dollar

NAIROBI (Reuters) - The Kenyan shilling was firm on Monday due to easing dollar demand from oil and goods importers and tight liquidity in the local money market ahead of the holiday season, traders said.

 

At 0723 GMT, commercial banks quoted the shilling at 102.45/65 per dollar, compared with 102.55/75 at Friday’s close.

 

 

Canadian regulator to fine Glencore-controlled miner over Congo - WSJ

(Reuters) - A Glencore-controlled (GLEN.L) mining company and some of its current and former executives have agreed to pay more than $22 million to settle Canadian allegations they hid the risks of doing business with an Israeli close to Congolese President Joseph Kabila, the Wall Street Journal reported.

 

The expected settlement between the Ontario Securities Commission and Toronto-listed Katanga Mining Ltd is related to the company’s business activities in the Democratic Republic of Congo between 2014 and 2016, the Journal reported, citing an anonymous source.

 

A Glencore spokesman declined to comment. The Ontario Securities Commission did not immediately respond to a request for comment.

 

Glencore’s share price rose around 1 percent by 0927 GMT, while the broader mining index was 1.4 percent higher.

 

The Canadian regulator is expected to name several of Katanga’s current and former executives in the settlement, which industrial sources said could be announced this week.

 

Investigations have included exploring Katanga’s ties with Israeli businessman Dan Gertler, the report said. The settlement is also expected to allege that Katanga overstated copper production, understated mining costs and lacked proper internal financial controls, it added.

 

A statement from Katanga in 2017 said the OSC was reviewing whether the company’s previously filed financial statements “contain statements that are misleading in a material respect”.

 

Katanga had said the OSC was also investigating whether Katanga’s corporate governance practices were adequate and the “related conduct” of certain unidentified company directors and officers.

 

Glencore has faced a series of legal issues related to its activities in Congo, which is home to almost 60 percent of the world’s supply of cobalt, a mineral expected to be in demand for batteries used in electric vehicles.

 

In July, U.S. authorities demanded Glencore hand over documents about its business in the Democratic Republic of Congo, Venezuela and Nigeria as part of a corruption enquiry.

 

Last year after an internal review into Katanga identified weaknesses in its financial reporting controls, three Glencore executives, including Aristotelis Mistakidis, the head of its copper group, stepped down from the board of Katanga.

 

Mistakidis, one of Glencore’s most senior executives, retires at the end of the year, Glencore announced earlier this month.

 

Glencore Chief Executive Ivan Glasenberg, 61, has also said he wishes to retire by the time he is 65.

 

Glencore’s shares have fallen around 25 percent so far this year, in part, analysts say, because of concerns about geopolitical risk.

 

Over the two previous years, the miner-trader had led a recovery of the mining sector following a deep crash in 2015-16.

 

 

 

France to introduce digital tax in new year

France has said it will introduce its own tax on big technology firms from 1 January after EU-wide efforts stalled.

 

French Finance Minister Bruno Le Maire said he expected it to bring in €500m (£450m) in 2019.

 

France, along with Germany, had been pushing for the European Commission to agree measures by the end of this year.

 

But it is opposed by countries including Ireland, the Czech Republic, Sweden and Finland.

 

Earlier this year, the European Commission published proposals for a 3% tax on the revenues of large internet companies with global revenues above €750m (£675m) a year and taxable EU revenue above €50m.

 

The move would affect companies such as Google, Apple, Facebook and Amazon.

 

But critics fear an EU tax could breach international rules on equal treatment for companies across the world.

 

EU tax reforms need the backing of all member states to become law.

 

In the UK, Chancellor Philip Hammond announced in the Budget in October that he plans to introduce a digital services tax from April 2020 following a consultation.

 

Countries including the UK and France have accused firms of routing some profits through low-tax EU member states such as Ireland and Luxembourg.

 

Big US tech companies have argued they are complying with national and international tax laws.

 

However, the Commission said it wanted to tax companies according to where their digital users are based.--BBC

 

 

Asos profits hit by fashion price-cutting

Online fashion retailer Asos has warned of weak profits this financial year after "unprecedented" discounting hit its trading in November.

 

After reports of dismal High Street activity last month, the Asos warning indicates the pain is spreading online.

 

The firm said cutting prices to match rivals had not shifted more clothes.

 

In fact, economic uncertainty plus weaker consumer confidence had led to "the weakest growth in online clothing sales in recent years".

 

Asos shares fell nearly 40% in morning trading.

 

Chief executive Nick Beighton said the fashion industry was currently experiencing an "unprecedented level of discounting, something I've not seen before".

 

In a conference call with industry analysts, he said consumer confidence was "fragile".

 

Why are people spending less this Christmas?

Why are there so many pre-Christmas sales?

Despite sales growth of 14% from September to November, Asos saw "a significant deterioration" in November.

 

It had previously forecast sales growth of 20-25% in the year to August 2019. However, it now expects just 15% growth.

 

Its anticipated profit margin was also revised down, from 4% to 2%.

 

Worried voices of retail are becoming a deafening chorus and the lyrics are simple. November was bad - really bad - and not just on the High Street.

 

Online retail darling Asos saw its shares plunge 35% this morning after warning that its profits would undershoot expectations. Comments from chief executive Nick Beighton describing an "unprecedented level of discounting" saw other retailers' share prices slump, including those of Boohoo, Next and JD Sports.

 

Last week, Sports Direct tycoon Mike Ashley said November had been the "worst November in living memory" and predicted some retailers would be "smashed to pieces".

 

The woes of predominantly bricks-and-mortar retailers (like clothing retailer Bonmarché, which saw its shares halve as it lurched to a £4m loss last week) have been well chronicled, but the significance of the Asos update is that it shows the fight for every last pound and every last percentage point of profit margin has spread online.

 

There may yet be a late rush, but evidence so far suggests retailers' annus horribilis is not ending well.

 

"Whilst trading in September and October was broadly in line with our expectations, November, a very material month for us from both a sales and cash margin perspective, was significantly behind expectations," Asos said.

 

"There has been a high level of discounting and promotional activity across the market. We have increased our own level of promotional activity, leading to a higher discount and continued high clearance mix.

 

"This increased discounting, coupled with the unseasonably warm weather during the last three months has reduced our ASP [average selling price], which has not been compensated by higher units per basket."

 

Outside the UK, Asos said trading conditions in Germany and France, which account for about 60% of its EU sales, had become "significantly more challenging".

 

Over the three months to 30 November, total group revenue was £656m, up from £576.7m in the same period last year.

 

Rival firm Boohoo saw its shares tumble 10% in the wake of the Asos announcement.

 

However, it said it was "pleased to confirm" that its trading performance remained strong, "with record Black Friday sales across the group", and that it continued to trade "comfortably in line with market expectations".

 

Asos's bleak assessment comes after Sports Direct boss Mike Ashley described trading in November as "the worst on record, unbelievably bad".

 

"Retailers just cannot take that kind of November," Mr Ashley told analysts last week. "It will literally smash them to pieces."

 

Confidence knocked

George Salmon, equity analyst at Hargreaves Lansdown, said: "After making impressive strides in recent years, a challenging consumer backdrop has finally tripped Asos up.

 

"Recent data revealed a huge decline in UK retail footfall, which it would have been easy to assume was due to online players taking share at a faster rate. These numbers show it's more complicated, and more worrying, than that.

 

"It looks like consumer confidence has been knocked to the extent people aren't spending much anywhere, be it in physical stores or online."

 

Mr Salmon said "uncertainty around Brexit" would also be playing a major role.

 

He added: "It's probably no coincidence Asos's key demographic of 20-somethings generally harbour more concerns over the future of the economy post-Brexit than their parents."--BBC

 

 

 

1MDB: Malaysia charges Goldman Sachs and two bankers

Malaysia has filed criminal charges against Goldman Sachs and two former employees in connection with a corruption and money laundering probe at the country's investment fund, 1MDB.

 

The US bank has been under scrutiny for its role in helping to raise funds for the 1Malaysia Development Bhd (1MDB).

 

It is being investigated in at least six countries.

 

Goldman Sachs called the charges "misdirected" and said it would "vigorously defend them".

 

"The firm continues to co-operate with all authorities investigating these matters," the bank added.

 

Malaysia filed the charges against Goldman Sachs and its former bankers Tim Leissner and Roger Ng.

 

Mr Leissner served as Goldman's South East Asia chairman, and left the bank in 2016. Mr Ng was a managing director at Goldman until his departure in May 2014.

 

Malaysia also filed charges against local financier Low Taek Jho, also known as Jho Low who maintains his innocence, and former 1MDB employee Jasmine Loo Ai Swan.

 

Last month, Mr Leissner, Mr Ng and Mr Low were served with criminal charges in the US in relation to 1MDB.

 

Mr Leissner pleaded guilty in the US to conspiring to launder money and violating anti-bribery laws.

 

US prosecutors said Mr Leissner and Mr Ng worked with Mr Low to bribe government officials to win 1MDB business for Goldman Sachs.

 

Authorities in the US said billions of dollars were embezzled from the state fund - which was set up by the Prime Minister Najib Razak in 2009 - and were used to buy a list of expensive properties, and even finance the Wolf of Wall Street movie.

 

They allege that among the things bought by the money were:

 

*         L'Ermitage hotel property and business

*         Park Lane Hotel assets in New York

*         Four California properties

*         Four New York properties

*         One London property

*         A private jet

*         EMI assets, including royalties

*         Van Gogh painting

*         Two Monet paintings

Malaysia's attorney general Tommy Thomas said in a statement: "The charges arise from from the proceeds of three bonds issued by the subsidiaries of 1MDB, which were arranged and underwritten by Goldman Sachs."

 

The scandal has prompted investigations around the world and played a role in the election defeat earlier this year of Mr Razak who is accused of pocketing $700m (£517m) from the fund.

 

Malaysia has made its indictment against Goldman Sachs public - the first time a government has brought criminal charges against the bank over the 1MDB scandal.

 

Now investors are waiting to see what the US Department of Justice will do.

 

The case US prosecutors outlined last month against bankers Tim Leissner, Roger Ng and Malaysian financier Jho Low left Goldman's role up for debate.

 

Goldman Sachs underwrote around $6bn in bonds issued by 1MDB in three separate offerings between 2012 and 2013.

 

The Department of Justice accused the men of working around Goldman's compliance office to do the deals.

 

But it also noted that "other employees" had helped execute transactions in connection with 1MDB and in his guilty plea, Mr Leissner said his actions were "very much in line" with the bank's culture.

 

So will US officials decide the bank had weak oversight?

 

Already, the investigation has clouded the reputation of departing chief executive, Lloyd Blankfein, while adding to troubles at the bank, which has performed relatively poorly compared to its rivals this year.

 

That said, a decade of post-financial crisis scandals has left Wall Street's banks bigger and more profitable than ever.

 

If the US Department of Justice chooses, for example, to level a fine against Goldman Sachs, it is questionable just how much impact that would really have on the financial giant.--BBC

 

 

Bloodhound supersonic car project saved

A 1,000mph race car project has been saved after an entrepreneur stepped in to buy the business.

 

The Bloodhound supersonic vehicle - built with a jet engine bolted to a rocket - is all but finished.

 

Its future was in jeopardy amid a failure to secure investment which forced the firm financing it into administration.

 

But Yorkshire-based entrepreneur Ian Warhurst has bought the project for an "undisclosed amount".

 

Mr Warhurst, the managing director of Barnsley engineering firm Melett, said it would have been "criminal" not to continue with the record attempt.

 

"There's a bit more sorting of the car to do, but nothing major, to get to that first step of testing it at high speed," he said.

 

"That's what made it such a shame, because they had got as far as they had. It just had to carry on."

 

Bloodhound Diary: It's going to get toasty

Delay for Bloodhound high-speed trials

First public runs for 1,000mph car

Administrator Andrew Sheridan said: "Ian has a strong background in managing highly successful businesses in the automotive engineering sector and he will bring considerable expertise to bear in taking the project forward."

 

Mr Sheridan said the Ministry of Defence and Rolls Royce had both given their support to the deal.

 

The Bristol-based team behind the Bloodhound project aims to beat the existing land speed world record of 763mph (1,228km/h).

 

It is due to attempt to reach a record-breaking speed in South Africa, where an 18km-long (11-mile), 1,500m-wide (4,921ft) track at Hakskeen Pan in the Northern Cape has been prepared.

 

Previous test runs at Newquay Airport in 2017 saw Bloodhound reach speeds of 200mph (320km/h).

 

The project planned on running on Hakskeen Pan towards the end of 2019, when the water in the lakebed evaporated and the ground had become dry.

 

The Bloodhound, using a Rolls-Royce Eurofighter engine alongside a rocket, was then due to be tested at 500-600mph (800-965km/h) before approaching its top speed in further test runs during 2020 or 2021.--BBC

 

 

Energy firms SSE and Npower scrap merger plan

Energy firm SSE has scrapped its plan to merge its retail business with rival Npower, blaming "very challenging market conditions".

 

The deal would have created the UK's second-biggest energy supplier.

 

The two said last month they would have to renegotiate the deal, which had been cleared by the regulator, because of the government's new price cap.

 

The cap will keep energy bills below £1,137 a year for "typical usage" and is due to start in the new year.

 

Energy regulator Ofgem has said the cap will save 11 million customers an average of £76 a year on their gas and electricity bills.

 

More than half of all households in Britain are on default tariffs because they have never switched or have not done so recently.

 

'Complex transaction'

The merger would have seen SSE's household energy division, SSE Energy Services, combined with the retail operations of Npower, which is owned by Germany's Innogy,

 

However, in a statement, SSE said it had decided the tie-up was no longer "in the best interests of customers, employees or shareholders".

 

The deal was affected by several factors, SSE added, including the performance of the two businesses, the energy price cap and changing energy market conditions.

 

It said the combination of these factors "meant the new company would have faced very challenging market conditions, particularly during the period when it would have incurred the bulk of the integration costs".

 

SSE chief executive Alistair Phillips-Davies said: "This was a complex transaction with many moving parts. We closely monitored the impact of all developments and continually reviewed whether this remained the right deal to do for our customers, our employees and our shareholders.

 

"Ultimately, we have now concluded that it is not. This was not an easy decision to make, but we believe it is the right one."

 

SSE said it was now assessing options for its SSE Energy Services business, including a standalone demerger and listing, a sale or an alternative transaction.

 

Earnings hit

Martin Herrmann, chief operating officer of Innogy SE, said: "Adverse developments in the UK retail market and regulatory interventions such as the price cap have had a significant impact on the outlook for the planned retail company.

 

"We are now assessing the different options for our British retail business."

 

Following the deal's collapse, Innogy cut its outlook for the current year, as it now has to include Npower in its accounts.

 

The company said adjusted earnings would be hit by about €250m (£225m).--BBC

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

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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