Major International Business Headlines Brief::: 21 December 2018

[Bulls n Bears]

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

 


 

 


Major International Business Headlines Brief::: 21 December 2018

 


 

 


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

 


 

 


 

 

*  S.Africa's Shoprite faces hefty fine for anti-competitive behaviour

*  Indian food delivery firm Swiggy raises $1 bln in Naspers-led funding
round

*  South African state asset manager buys up struggling arms firm's bonds

*  Zambia pricing itself out of global mining with tax hikes -industry body

*  Lonmin's biggest mining union tries to block Sibanye deal

*  IMF's Lagarde says South Africa has not requested for financial support

*  Ghosn: Auto tycoon re-arrested on new charges

*  UK car production tumbles in November

*  Shutdown threat adds to Wall Street woe

*  US charges 'China government hackers'

*  Bank cuts growth forecast amid Brexit worries

*  Centrica in legal challenge to energy price cap

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

                                      

S.Africa's Shoprite faces hefty fine for anti-competitive behaviour

JOHANNESBURG (Reuters) - South Africa’s Competition Commission on Thursday
recommended Shoprite’s retail unit, which houses the country’s biggest
supermarket chain, be fined 10 percent of its turnover for anti-competitive
behaviour.

 

Shoprite shares fell more than 4 percent after the commission referred it to
the country’s Competition Tribunal, which will ultimately decide if the
commission’s charges and proposed fine should stand.

 

The retailer said it would oppose the decision to charge it with
anti-competitive behaviour.

 

The retailer does not disclose turnover for its individual units in its
financial statements, but Shoprite Checkers, which includes all of
Shoprite’s supermarket brands as well as its liquor, furniture, meat and
money businesses, is its biggest money maker.

 

Overall, Shoprite’s businesses brought in 145.3 billion rand ($10.22
billion) in revenue in 2018.

 

The case centres on Shoprite Checkers’ event ticket selling subsidiary,
Computicket, which was also charged and fined 10 percent of turnover.

 

The Competition Commission said in a statement Computicket had signed
agreements with inventory providers in the entertainment industry that
enabled it to discriminate on prices between different-sized customers and
served to exclude its competitors.

 

In a statement, Shoprite said it disagreed with the basis for the referral
to the Tribunal.

 

“Opposing affidavits will be filed by the respondent companies within the
required time frames,” Shoprite said referring to the 20 business days
within which they can oppose the decision.

 

Its shares had recovered somewhat to 180.61 rand, a decline of 3.12 percent,
by 1354 GMT.

 

The case marks the second time the commission has referred Computicket to
the Competition Tribunal, with a decision on similar charges spanning the
period 1999 to December 2012 still pending.

 

This is the first time that Shoprite has been added as a respondent to the
charges, however, with the current case covering the period from January
2013 to present.

 

($1 = 14.2191 rand)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Indian food delivery firm Swiggy raises $1 bln in Naspers-led funding round

MUMBAI/BENGALURU (Reuters) - Online food delivery service provider Swiggy
said it has raised $1 billion in its latest funding round, led by South
African internet giant Naspers Ltd.

 

Chinese tech giant Tencent Holdings Ltd, Hillhouse Capital and Wellington
Management Company took part in the funding round, together with Swiggy’s
existing investors, DST Global, Meituan Dianping and Coatue Management.

 

Swiggy, based in the southern Indian tech hub of Bengaluru, is valued at a
little over $3 billion after this funding round, a source familiar with the
matter told Reuters.

 

The company did not immediately respond to an email seeking comment on the
valuation.

 

Swiggy will use the funds to hire and strengthen its technology backbone,
the company said.

 

The firm, which runs a mobile-based application and a website for
food-delivery services, currently operates in more than 50 Indian cities.

 

It competes with homegrown Ola-owned Foodpanda, Uber’s food delivery
service, and China’s Ant Financial Group-backed Zomato, which is valued at
over $1 billion.

 

Swiggy has raised a total of $1.26 billion since it was founded in 2014,
including the latest round.

 

 

 

South African state asset manager buys up struggling arms firm's bonds

JOHANNESBURG (Reuters) - South Africa’s state asset manager has quietly
bought up almost 90 percent of cash-strapped arms manufacturer Denel’s bonds
in the past 12 months, data from the country’s main securities depositary
showed.

 

The previously undisclosed funding by the Public Investment Corporation
(PIC), which manages 2 trillion rand ($140 billion) of investments for the
government, sheds new light on the precariousness of Denel’s financial
position.

 

It also shows the extent of state support for Denel at a time when private
investors say they are reluctant to lend to the weapons company because of
its previous management’s involvement in a corruption scandal.

 

Faced with a critical election next year, President Cyril Ramaphosa is
fighting to keep struggling state-owned companies like Denel and power
utility Eskom afloat.

 

But he also wants to preserve South Africa’s last investment-grade credit
rating, the loss of which could trigger large capital outflows. Ramaphosa
recently ruled out for that reason a request by Eskom for the state to take
on 100 billion rand of its debt.

 

A senior lawmaker in the biggest opposition party, the Democratic Alliance
(DA), said the purchase of Denel debt by the PIC amounted to a bailout by
stealth.

 

“This is a state bailout, irrespective whether it is a grant from National
Treasury or a PIC investment via bonds,” said Kobus Marais, the DA’s shadow
minister for defence. “Denel must be sustainable on its own.”

 

The PIC only held around 350 million rand of Denel bonds in March 2017, but
from December last year it started to dramatically increase those holdings,
data from South Africa’s Central Securities Depositary analysed by Reuters
showed.

 

As of Dec. 14 this year, the PIC owned 2.8 billion rand of Denel bonds, out
of the company’s total issuance of 3.15 billion rand. The PIC purchased the
bulk of that debt via private placements in December 2017, September 2018
and this month.

 

It bought almost 2.5 billion rand of debt — issued to refinance older
borrowing — in September alone. That same month, Denel was unable to pay
senior staff in full because of what it called “liquidity challenges”.

 

Two former Denel executives told Reuters that many banks and large private
investors had refused to lend to Denel since December 2017, citing
governance concerns. They said that by September 2018 the company did not
have enough cash to meet maturing debt repayments, putting it at risk of
default.

 

Asked about the PIC’s purchases of Denel’s bonds, the arms company’s
spokeswoman said: “Denel has been successful in raising sufficient funds
from the bond markets to ensure that it is in a position to honour its
obligations. ... It will soon become profitable and operationally
sustainable.”

 

She declined to comment on whether Denel would have defaulted without PIC
support.

 

The PIC’s current holdings of Denel’s debt are held on behalf of the
Unemployment Insurance Fund and Compensation Commissioner, two funds the
state uses to pay benefits to unemployed, sick or injured people.

 

“State-owned entities, in which the PIC is invested on behalf of its
clients, service their interest payments as required and to date there have
been no defaults,” the PIC said in a statement to Reuters, confirming that
it owned 2.8 billion rand of Denel bonds.

 

A spokesman for the National Treasury, which is the ministry responsible for
the PIC, said the state asset manager took its own investment decisions.

 

 

DEBT WOES

Denel, a cornerstone of South Africa’s once-mighty defence industry, has
been plagued by years of mismanagement.

 

It recorded a 1.7 billion rand loss — its first in eight years — in the
financial year that ended in March, and has struggled to pay suppliers and
employee salaries for much of the past year.

 

Defence industry officials have said Denel requires new equity partners to
survive in the long term.

 

Saudi Arabia, the world’s third-largest defence spender, has approached
South Africa about partnering with Denel as part of efforts to establish its
own defence industry, but the South African government has yet to respond to
the offer.

 

Contributing to Denel’s woes was its involvement in an influence-peddling
scandal involving associates of former President Jacob Zuma that made
investors wary of its debt.

 

Denel’s most recently maturing debt — 290 million rand owed to sole investor
the City of Johannesburg — was due to be repaid on Dec. 11. Johannesburg’s
mayor told Reuters on Dec. 10 he was still unsure if the city would be
repaid.

 

“I made it clear to them I wasn’t going to roll the debt over,” Mayor Herman
Mashaba said.

 

A source in the public enterprises ministry, which oversees Denel, told
Reuters earlier this month that ministry officials were working closely with
Denel to help it refinance its debts.

 

Denel, which relies almost entirely on short- and medium-term bond issues
for its funding needs, issued a new 290 million rand bond on Dec. 11, the
proceeds of which were used to repay the City of Johannesburg.

 

The PIC bought the whole issue, securities depositary data showed.

 

($1 = 14.2396 rand)

 

 

Zambia pricing itself out of global mining with tax hikes -industry body

LUSAKA (Reuters) - Zambia is pricing itself out of the global mining market
with proposed tax increases, the head of the local mining body said on
Thursday, a further warning to investors rattled by the government’s efforts
to squeeze more money from the sector.

 

Africa’s No.2 copper producer plans to introduce new mining duties, replace
value-added tax (VAT) with a sales tax and increase royalties, from January,
to help bring down mounting public debt.

 

Mining accounts for more than 70 percent of Zambia’s foreign exchange
earnings and companies operating in the southern African nation include
First Quantum, Glencore and Vedanta Resources.

 

“The proposed regime will result in over 58 percent of Zambia’s copper
producers being in a loss-making position at current prices,” Zambia Chamber
of Mines’ President Goodwell Mateyo told a news conference.

 

The government estimates that mining tax revenues will rise to $1.3 billion
next year following the tax increases, from $800 million this year. The
chamber, however, expects revenues would rise to only around $840 million,
Mateyo said.

 

The government still owes mining firms around $550 million-$600 million in
VAT refunds, which the revenue authority has promised to pay by next year,
Chamber Chief Executive Sokwani Chilembo said.

 

Concerns about Zambia’s rising debt, alongside accusations of additional
hidden borrowing and government corruption, have spooked investors and
Western donors in recent months.

 

The International Monetary Fund has put on hold talk about an aid package
due to Zambia’s debts, which it describes as unsustainable.

 

 

Lonmin's biggest mining union tries to block Sibanye deal

JOHANNESBURG (Reuters) - A South African union has filed an appeal to
overturn a mining deal in which Sibanye-Stillwater intends to acquire rival
Lonmin, Sibanye said on Wednesday.

 

The Association of Mineworkers and Construction Union (AMCU), protesting to
job cuts related to the deal, launched an appeal with the Competition
Appeals Court.

 

The union’s action comes almost a month after the Competition Tribunal gave
the deal the thumbs up on condition that Sibanye does not cut jobs for a
period of six months.

 

The all-share deal, valued at 285 million pounds ($361 million), is likely
to lead to more than 10,000 layoffs, both companies have said.

 

Sibanye-Stillwater and Lonmin intend to request an urgent hearing from the
Competition Appeals Court in relation to AMCU’s appeal, Sibanye said on
Wednesday.

 

($1 = 14.1321 rand)

 

($1 = 0.7901 pounds)

 

 

 

IMF's Lagarde says South Africa has not requested for financial support

PRETORIA (Reuters) - The International Monetary Fund has not received any
request from South Africa for a financial aid programme, it’s managing
director Christine Lagarde said on Wednesday, as the country struggles with
weak economic growth and rising debt.

 

“I am not here to discuss any kind of financial support or to negotiate any
kind of programme and I have not received any request to that effect,”
Lagarde told reporters in Pretoria.

 

“That is crystal clear and I hope it puts to bed some of the rumours or
noises here and there about this particular matter.”

 

 

 

Ghosn: Auto tycoon re-arrested on new charges

Former Nissan chairman Carlos Ghosn has been re-arrested on fresh charges,
Japanese media report, dashing any hopes he could be released on bail.

 

Mr Ghosn has spent the last month in prison, accused of misusing funds and
hiding $80m (£63m) of income.

 

But on Thursday a court rejected a request by the prosecution to extend his
detention, which meant he could apply to be released on bail.

 

Friday's arrest is on a new charge of aggravated breach of trust.

 

According to Japanese broadcaster NHK, prosecutors now accuse Mr Ghosn of
shifting a private investment loss of over $16m onto Nissan in the wake of
the 2008 financial crisis.

 

A towering and revered figure in the auto industry, Mr Ghosn has not yet
responded to the latest allegation - but he has consistently denied all
prior accusations made against him.

 

He was first arrested in Tokyo in November as allegations of financial
misconduct surfaced.

 

The BBC's Mariko Oi says that ever since Carlos Ghosn stepped off his
private jet only to be taken into police custody, the case has gripped Japan
with speculation rife over what could be behind such a stunning fall from
grace.

 

The case has been highly unusual - not least for a high profile chief
executive to be spending time in jail - but also because of its legal twists
such as yesterday's when the court rejected an application to extend his
detention, our reporter adds.

 

If found guilty of the financial misconduct charges he could face up to 10
years in prison as well as a fine of up to 700m Japanese yen ($6.2m; £4.9m),
according to Japanese regulators.

 

This latest move means he will remain in prison so prosecutors can question
him further.

 

Mr Ghosn's detention has also put into doubt the future of the Alliance - a
global car manufacturing group that includes Renault, Nissan and Mitsubishi.

 

Nissan and Mitsubishi both sacked Mr Ghosn as chairman after his arrest last
month.

 

But Renault has held off, choosing instead to appoint a temporary deputy
chief executive to take over the running of the firm.

 

*         Who is Carlos Ghosn?

*         His hero status was so big that his life was serialised in one of
Japan's famous cartoon comic books

*         The Brazilian-born boss of Lebanese descent and a French citizen
says his background left him with a feeling of being different, which helped
him adapt to new cultures

*         In France he was known as Le Cost Killer, a comment on the deep
cuts he made to revive Renault

*         He was once tipped as a potential president of Lebanon, a move he
eventually dismissed because he already had "too many jobs"

*         In a 2011 poll of people the Japanese would like to run their
country Mr Ghosn came seventh, in front of Barack Obama (ninth)--BBC

 

 

UK car production tumbles in November

Production of cars in the UK tumbled by almost 20% in November compared with
a year earlier, according to the industry's trade body.

 

The Society of Motor Manufacturers and Traders (SMMT) blamed weaker demand
in the UK and in export markets.

 

It also said changes in regulation and the introduction of new models and
technology had contributed to the fall.

 

Exports fell by almost 23% in November - the fifth consecutive month that
exports have declined.

 

Since September new models have been tested under a stricter emissions
standards, which has disrupted car production.

 

Output was also held up in November as carmakers awaited updated engines and
transmissions for two models - the SMMT did not say for which cars.

 

In addition, manufacturing of the new Toyota Corolla at the Burnaston plant
near Derby has not reached maximum output yet, the SMMT said.

 

What's going wrong at Jaguar Land Rover?

Economy slows as car sales fall

"It's very concerning to see demand for UK built cars decline in November,
with output seriously impacted by falling business and consumer confidence
in the UK allied to weakening export markets," said Mike Hawes, the chief
executive of the SMMT.

 

He also called for a no-deal Brexit to be ruled out, saying that "thousands"
of jobs in car factories and their suppliers depend on frictionless trade
with the European Union.

 

Last year the UK exported more than 1.3 million cars, of which more than
half (54%) went to the EU.--BBC

 

 

Shutdown threat adds to Wall Street woe

Wall Street shares closed at their lowest levels in roughly 14 months on
Thursday, as the threat of a government shutdown added to wider investor
angst.

 

Losses accelerated around midday, as Republicans said President Donald Trump
would not sign the current bill to fund the government.

 

Shares rebounded a bit but fell again as Mr Trump spoke about his decision.

 

The blue-chip Dow Jones index sank 2%, while the S&P 500 and the tech-heavy
Nasdaq ended about 1.6% lower.

 

The three major indexes are now down 6% or more since the start of 2018.

 

Mr Trump's statement on Thursday that he will not sign a funding bill
without more money for border security added to the worries about global
growth, rising interest rates and trade that have rocked markets in recent
weeks.

 

What's knocked markets off course?

While the threatened government shutdown would affect only a small portion
of operations, it could still shave about $1.2bn off GDP for each week the
government is closed, according to analysts at S&P Global Ratings.

 

"This is not the way to ring in the holiday season and the new year," they
said.

 

 

Thursday's declines were led by the energy sector, which was grappling with
a 5% fall in oil prices.

 

On the Dow, Walgreens Boots Alliance was the biggest loser, tumbling more
than 4% after reporting weaker-than-expected quarterly earnings, driven in
part by muted demand in the UK.

 

On Wednesday, the Federal Reserve increased its benchmark interest rate by
0.25%, the fourth such increase this year.

 

The decision spurred a sell-off in US markets, which was followed on
Thursday by losses in Asia and Europe.--BBC

 

 

 

US charges 'China government hackers'

The US justice department has indicted two Chinese men accused of hacking
into the computer networks of companies and government agencies in Western
countries.

 

The pair are allegedly part of a "hacking group" known as Advanced
Persistent Threat 10, affiliated with China's main intelligence service.

 

They have not been arrested.

 

The US and UK have accused China of violating an agreement relating to
commercial espionage.

 

Zhu Hua and Zhang Shilong worked for a company called Huaying Haitai and in
association with the Chinese Ministry of State Security, the US court filing
says.

 

The Federal Bureau of Investigation (FBI) said that from at least 2006 until
2018, the two extensively hacked into computer systems with the aim of
stealing intellectual property and confidential business and technological
information from:

 

at least 45 commercial and defence technology companies in at least 12 US
states

managed service providers (MSPs) and their government and commercial clients
in at least 12 countries, including the UK, Brazil, Canada, Finland, France,
Germany, India, Japan, Sweden, Switzerland, and the UAE, as well as the US

US government agencies

The FBI said they had also hacked into US Navy computer systems and stolen
the personal information of more than 100,000 personnel.

 

FBI director Christopher Wray said the two men were at present "beyond US
jurisdiction".

 

'Economic aggression'

Announcing the unsealing of the indictments, US Deputy Attorney General Rod
Rosenstein said China had violated a 2015 agreement under which it had
pledged to not engage in commercial cyber-spying.

 

Mr Rosenstein said his department's move had been co-ordinated with US
allies in Europe and Asia to rebuff "China's economic aggression".

 

He added: "We want China to cease its illegal cyber activities."

 

The UK government said it was joining allies in holding the Chinese
government responsible for a global campaign targeting commercial secrets.

 

UK Foreign Secretary Jeremy Hunt said: "This campaign is one of the most
significant and widespread cyber intrusions against the UK and allies
uncovered to date, targeting trade secrets and economies around the world.

 

"These activities must stop. They go against the commitments made to the UK
in 2015, and, as part of the G20, not to conduct or support cyber-enabled
theft of intellectual property or trade secrets."

 

Australia and New Zealand said they too held China responsible for the
global hacking campaign and joined their "like-minded partners" in
condemning the activity.

 

'Chinese hackers return'

By Gordon Corera, security correspondent

 

This is the latest salvo in Washington's attempt to pressure Beijing on a
range of issues, with economic espionage one of the most high-profile.

 

US and UK officials are reluctant to name the companies that have been hit
but they say the economic damage has been significant.

 

The hackers, officials say, work under the direction of China's Ministry of
State Security - one of the country's intelligence organisations.

 

"It is organised more like a corporation than a gang," one UK official says,
adding that British intelligence has the highest level of confidence in
their assessment of who was responsible.

 

The UK and US believe China is breaking a 2015 agreement not to steal
commercial data to help its companies. There was a dip in activity after the
deal was signed (which followed a period of pressure by Washington,
including the indictment of Chinese military hackers and the threat of
sanctions).

 

But US and UK sources both say that recently they have seen Chinese hackers
return, now operating more stealthily, whereas in the past they were easier
to spot.

 

Where the US has been vocal in recent months, this is the first time the UK
has spoken out - perhaps because it has been concerned about risking trade
ties and getting pulled into the Trump administration's broader
confrontation with Beijing.

 

UK officials say they have raised the matter privately a number of times
with Beijing over the last two years, including during the prime minister's
visit earlier this year, and officials are keen to stress that they think
the relationship with China is strong enough to allow them to address these
issues without causing wider problems.--BBC

 

 

Bank cuts growth forecast amid Brexit worries

The Bank of England has cut its UK growth forecast and warned a lack of
Brexit clarity is hitting the economy.

 

The Bank said uncertainty over the UK's departure from the EU had
"intensified considerably" over the past month.

 

Against a backdrop of weaker global growth, the Monetary Policy Committee
(MPC) voted unanimously to keep interest rates at 0.75%.

 

It said the economy was likely to grow by 0.2% in the final quarter of 2018,
down from an earlier forecast of 0.3%.

 

That follows growth of 0.6% in the previous quarter.

 

The Bank expects slower economic growth to continue into 2019.

 

What next for rates?

The Bank of England last raised interest rates in August to 0.75%, but has
been reluctant to push them higher while uncertainty remains over Brexit.

 

But if there is a deal, economists say the Bank is likely to make a move.

 

"We continue to think that the MPC won't wait for signs of a recovery to
emerge in the data and will raise Bank Rate to 1.0% in May," said Samuel
Tombs, Chief UK Economist at Pantheon Macroeconomics.

 

Paul Dales, Chief UK Economist at Capital Economics, sees a sharp increase
in rates, if there is a "smooth" Brexit outcome.

 

"Our money is currently on a faster rebound in GDP growth prompting the Bank
to raise rates by 0.25% three times next year and two more times in 2020,"
he said.

 

The worst November for retailers?

Retail sales jump more than expected

Inflation eases as petrol prices fall

The UK government's decision to abandon a vote on the Brexit deal last week
dragged down UK share prices and triggered a drop in the value of the pound.

 

Commercial bank funding costs had also "risen sharply", the Bank noted,
which could push up consumer borrowing costs.

 

The Bank said the outlook for pay was brighter, with wages growing faster
than policymakers expected in November.

 

Measures announced in the Budget at the end of October, including a
multi-billion pound funding boost for the NHS, would lift growth by 0.3%
over the next few years, the Bank said.

 

Lower oil prices were likely to push inflation below the Bank's 2% target by
the end of the year. Policymakers expect inflation to remain there into the
start of 2019.

 

A separate Bank survey suggested that business services firms, including law
and accountancy companies, believed activity could slow "sharply" in the
event of a no-deal Brexit.

 

The survey also indicated that Black Friday sales had "failed to meet many
retailers' expectations" as cautious consumers kept spending down ahead of
Christmas.

 

While business surveys suggest weak growth in the months ahead, the Bank
noted that it was "it was possible that these surveys might be overstating
the extent of any slowing".

 

In the latest from the Bank of England's interest rate setters, it's not
what they did that's eye-catching - interest rates stayed the same.

 

It's what they said.

 

Some of it you already knew. "Brexit uncertainties have intensified
considerably since the last meeting."

 

You probably also knew sterling has depreciated further and is more
volatile.

 

What you might not have known is that it's costing banks more to fund
themselves - i.e. to borrow cash - and it's also costing corporations more
in interest to borrow funds from international investors.

 

Businesses are investing less and it's likely to stay that way for months.

 

The MPC has cut its forecast of economic growth for the fourth quarter of
2018 from 0.3% to 0.2%. And while inflation may dip below 2% in the coming
months, beyond that inflation expectations are higher based on higher pay
rises.

 

Assuming a smooth Brexit, "an ongoing tightening of monetary policy [rises
in interest rates]
 at a gradual pace and to a limited extent, would be
appropriate".

 

But these days that assumption is in serious doubt - and rates may have to
be cut.

 

To those who accuse the Bank of England of exaggerating the potential harm
of a no-deal Brexit, the message is clear. "Bah, Humbug!"--bbc

 

 

 

Centrica in legal challenge to energy price cap

British Gas owner Centrica is to mount a legal challenge against Britain's
upcoming energy price cap, arguing it has not been calculated fairly.

 

The energy provider said it would apply for a judicial review against the
regulator Ofgem, saying it had set the threshold too low.

 

The firm said it wanted not to delay the cap, due to come in on 1 January,
but to change how it is set.

 

The regulator said it would defend its proposals "robustly".

 

Ofgem proposed a cap on energy bills in September, following concerns that
consumers were not getting best value for money from suppliers' default
rates, or standard variable tariffs (SVT) .

 

British Gas to take £70m hit from price cap

Energy bills to be capped in new year

It means an average dual fuel customer who pays by direct debit should pay
no more than £1,137 a year, £68 lower than British Gas's SVT.

 

However, the policy has rattled some suppliers who say it will damage their
profits and it has also been blamed for some smaller providers going bust.

 

In November Centrica warned the cap would cost it £70m in lost operating
profits in the first quarter of 2019.

 

This was after British Gas shed 372,000 household accounts in the four
months to the end of October as customers left its SVT.

 

Centrica says that Ofgem had not properly taken into account the wholesale
energy costs that "all suppliers incur" when it devised the cap.

 

Explaining its decision to seek a judicial review, it said: "Through this
action Centrica has no intention to delay implementation of the cap, and
does not expect the cap to be deferred in any way.

 

"As we have previously said, we do not believe that a price cap will benefit
customers but we want to ensure that there is a transparent and rigorous
regulatory process to deliver a price cap that allows suppliers, as a
minimum, to continue to operate to meet the requirements of all customers."

 

Ofgem told the BBC that it "carried out an extensive consultation process
when setting the price cap and we believe that it offers consumers on poor
value tariffs a fairer deal.

 

"In the event of a judicial review we would defend our proposals robustly."

 

The regulator says the new energy price cap could save 11 million customers
an average of £76 a year on their gas and electricity bills.

 

But it has already said that the level of the cap is likely to rise in April
2019, to reflect the higher cost of wholesale energy. As a result, the
average annual saving in 2019 is likely to be lower.--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.

 


 

 


(c) 2018 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

Invest Wisely!

Bulls n Bears 

 

Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181221/31a29449/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181221/31a29449/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 42387 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181221/31a29449/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29396 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181221/31a29449/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 29388 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181221/31a29449/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29420 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181221/31a29449/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181221/31a29449/attachment-0011.jpg>