Major International Business Headlines Brief::: 27 December 2018

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Major International Business Headlines Brief::: 27 December 2018

 


 

 


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

 


 

 


 

 

*  2018: The year in business - from K-pop to soybeans

*  China's Zhejiang Huayou to invest $147 mln in copper project in DRC

*  MTN says resolves Nigeria dispute, makes $53 mln payment -MTN on Twitter

*  Ivorian cocoa arrivals seen at 725,809 T by Nov 30

*  South Africa's rand firms as U.S. political uncertainty weighs on dollar

*  Insurance firm Marsh launches China desk in Dubai to tap growing commerce

*  First Quantum Minerals plans 2,500 layoffs in Zambia over tax hikes

*  BP green-lights Africa's deepest offshore LNG project

*  Boeing, Green Africa Airways commit for up to 100 737 MAX 8 aircraft

*  South African rand on course for weekly gains, stocks up

*  US stock markets rally after pre-Christmas slump

*  Japan's Nikkei index slides amid US uncertainty

*  RBS applies for German banking licence ahead of Brexit

*  Huawei's kit removed from emergency services 4G network

*  Bigger discounts expected as shops try to boost sales

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

                                      

2018: The year in business - from K-pop to soybeans

One of President Donald Trump's key aims in 2018 was to "level the playing field" of global trade. But so far, his main achievement has been to fill the fields of America with giant mounds of unsold soybeans.

 

Those soybeans used to be snapped up by Chinese importers, largely to feed that country's pork industry. But this export route was halted in 2018 by a tit-for-tat global trade war that now involves $350bn (£277bn) worth of goods.

 

The Chinese announced their restrictions on US soybean imports in April. That was a response to President Trump's dramatic import tariffs of 25% on steel and 10% on aluminium imports.

 

In July, Mr Trump visited the Granite City steelworks in Illinois which had reopened following his new steel tariffs.

 

5,000-years-old

The president criticised previous American administrations for past policies that had allowed jobs to be exported abroad. Mr Trump told workers: "That's not free trade, that's fool's trade, that's stupid trade, and we don't do that kind of trade any more."

 

The response of the Chinese leadership has been to match sanctions with more sanctions.

 

In a speech in December, President Xi Jinping insisted: "In a big country like China with more than 5,000 years of civilisation… no one can dictate to the Chinese people what should and what should not be done."

 

Roger Johnson, president of the US National Farmers' Union, told me that the 200,000 family farmers he represents were increasingly concerned.

 

He spoke to us after a trip to his home state of North Dakota, commenting: "There are huge piles of soybeans, not just in stores, but piled on the ground. There is basically no market for many of these soybeans."

 

Spying

If kept under cover, soybeans can be stored for up to a year. Even so, Mr Johnson is worried that the trade dispute will have a long term impact on the reputation of the US as a reliable supplier, and soybean production will move to Brazil, Argentina and Eastern Europe.

 

Deborah Elms, executive director of the Asia Trade Centre in Singapore, divides Donald Trump's complaints against China into four elements. These are China's theft of American intellectual property, the forced transfer of technology when US firms build factories in China, cyber spying in the US, and the big US trade deficit with China.

 

Ms Elms agrees that China has not opened up as fast as many had hoped, but she doubts whether complex manufacturing supply chains can be moved from China back to the US for many products. And her assessment of the impact of President Trump's policy so far is that the economic damage from the higher cost of steel in America is offsetting any job gains.

 

She concludes: "There's one US aluminium company that is very happy, and there are a couple of US steel companies that have hired more workers.

 

"But the net result so far to the US economy and US jobs as a result of all of these tariff war policies have been uniformly negative for US workers and US jobs."

 

Lavish lifestyle

It is now 10 years since the height of the financial crisis when the reputation of investment bankers hit rock bottom.

 

The Wall Street banks have worked hard since then to demonstrate they are ethical and responsible. It was a heavy blow for Goldman Sachs, then, to find itself caught up in another financial scandal in 2018.

 

This centred on a fund in Malaysia called 1MDB, supposedly designed to finance infrastructure projects to benefit the country. In fact, about $4bn was apparently siphoned off to fund lavish living for insiders.

 

Most embarrassingly for Goldman, the bank's former head of South East Asia, Tim Leissner, has pleaded guilty to facilitating bribes. The executive alleged to US prosecutors that a culture of secrecy at the investment bank led him to conceal wrongdoing.

 

Goldman Sachs itself has now been charged by prosecutors in Malaysia. The bank says it had some rogue employees, but that the charges against it are "misdirected" and will be vigorously defended.

 

A Malaysian financier known as Jho Low, now believed to be in China, was one beneficiary. His spending spree included a $2m bill for one evening at a nightclub, chartering yachts, funding movies, and making friends with celebrities such as Paris Hilton and Leonardo di Caprio.

 

The scandal also led to Malaysian voters turning against prime minister Najib Razak, who founded 1MDB, after $700m turned up in his personal bank account apparently related to the scandal. Malaysians reinstalled their former prime minister, the 93-year-old Mahathir Mohammed.

 

Mr Razak has been charged but denies wrongdoing.

 

Boy band

Bradley Hope, co-author of a book on the scandal, Billion Dollar Whale, says: "What's really pernicious about this scandal is that the money that was taken was borrowed."

 

Subsidies to Malaysian fishermen have already had to be cut, and the $6.5bn debt in the 1MDB fund will have to be repaid by Malaysia's government, he says.

 

It was another poor year for efforts to halt climate change. The latest global totals for global carbon dioxide emissions suggest a 2.7% rise in 2018 - after a 1.6% rise in 2017.

 

Ambitious targets written into various climate agreements over the years have not led to successful shift in policies.

 

In France, President Emmanuel Macron's efforts to deter fuel use by increasing taxes met with violent protests and he was forced to back down.

 

The cultural barriers are coming down across the global entertainment industry.

 

Netflix continued to span the globe, drawing viewers away from established TV channels. And in the music business there was the breakthrough of Korea's K-pop - with one boy band topping the US album charts.

 

Their secret seems to be lavishly produced and choreographed videos combined with lyrics that speak to their generation.

 

Music journalist Taylor Glasby says the likes of Youtube and Spotify have helped promote K-pop across the globe.

 

Technology was key, she says. Even the lyrics can be immediately translated and put on websites. Put everything together, she says, "and you've got this unstoppable juggernaut of pop magic".--BBC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

China's Zhejiang Huayou to invest $147 mln in copper project in DRC

BEIJING (Reuters) - China’s Zhejiang Huayou Cobalt Co will invest $147.2 million to build a copper project in Democratic Republic of Congo (DRC), as it extends the exploration of its mining assets in the country, the company said in a filing to the Shanghai stock exchange on Tuesday.

 

The project will be located in the Lukuni region in the south of DRC, and will have annual electro-deposited copper production capacity of 30,000 tonnes.

 

Electro-deposited copper is a raw material widely used in the electrical equipment and machine manufacturing sectors.

 

Huayou has built two cobalt refineries in the Luiswishi region of DRC after buying copper-cobalt mineral rights from La Generale des Carrieres et des Mines in 2015.

 

The new copper project is expected to launch by September 2019, the company said in the filing, but it also warned it still needs approvals from Chinese authorities.

 

The investment will be made through its subsidiary Congo DongFang International Mining (CDM), which mainly sources copper and cobalt from DRC.

 

 

MTN says resolves Nigeria dispute, makes $53 mln payment -MTN on Twitter

LAGOS (Reuters) - South Africa’s MTN Group has resolved a dispute with Nigeria’s central bank and made a $53 million payment, the telecoms company said in a message posted on Twitter on Monday.

 

Nigeria’s central bank had said $8.1 billion in dividends paid by MTN Nigeria to its parent company between 2007 and 2015 and sent back to South Africa were illegal and should be returned.

 

While the west African country’s regulator had accused MTN of illegally transferring the funds out of the country, MTN denied any wrongdoing.

 

“MTN resolves Nigeria dividend issue, makes $53m payment, engaging with banks regarding the agreement,” it said on Twitter.

 

Nigeria is MTN’s biggest market, accounting for a third of its annual core profit, but has proved problematic in recent years.

 

Around two years ago MTN agreed to pay more than $1 billion to settle a dispute over SIM cards in Nigeria.

 

In a separate case, MTN faces a $2 billion tax demand from Nigeria’s attorney general.

 

 

 

Ivorian cocoa arrivals seen at 725,809 T by Nov 30

ABIDJAN (Reuters) - *Cocoa arrivals at ports in top grower Ivory Coast reached 725,809 tonnes between Oct. 1 and Nov. 30, CCC data showed on Wednesday, up about 48 percent from 551,020 tonnes in the same period last season.

 

*Previously, exporters had estimated around 689,000 tonnes of cocoa beans arrived in Ivorian ports at November 30, up from 510,000 tonnes year ago.

 

 

 

South Africa's rand firms as U.S. political uncertainty weighs on dollar

JOHANNESBURG (Reuters) - South Africa’s rand gained early on Monday in low-volume trade ahead of a shortened Christmas holiday week, as political instability in the United States curbed the dollar’s recent surge.

 

Stocks ended higher in trade led by resource firms.

 

At 1200 GMT the rand was 0.6 percent firmer at 14.5450 per dollar, compared to a close of 14.6300 on Friday in New York.

 

The dollar index was down 0.19 percent.

 

The rand, along with other emerging currencies, was hit by a wave of selling going before the weekend, with investors squaring positions and looking to offload risk holdings.

 

But by Monday risk demand was revived by developments in Washington, with investors fretting over a government shutdown that could continue into January and a report that President Donald Trump has discussed the possibility of firing the head of the central bank.

 

“A potential U.S. government shutdown, President Trump threatening to fire the Chairman of the Federal Reserve and U.S. politics in general are adding some pressure to the dollar,” said Bianca Botes of Peregrine Treasury Solutions.

 

Bonds closed flat, with the yield on the benchmark 2026 paper steady at 9 percent.

 

On the bourse, the Top-40 index rose 1.43 percent to 46,203 points, while the broader all-share was up 1.27 percent at 52,081.

 

AngloGold Ashanti led the blue-chip index, up 4.4 percent at 184.40 rand.

 

Bourse heavyweight Naspers rose 3.9 percent on the day to 2,956.30 rand.

 

 

Insurance firm Marsh launches China desk in Dubai to tap growing commerce

DUBAI (Reuters) - Marsh, one of the world’s largest insurance brokers and risk advisers, has launched a China desk in Dubai to benefit from growing commercial links between China, the Middle East and Africa, its regional chief executive said.

 

The subsidiary of U.S. professional services firm Marsh & McLennan Cos is the latest multinational to establish a China desk in Dubai, which is acting as a conduit for regional business emerging from China’s Belt and Road initiative.

 

Marsh has picked up deals related to infrastructure projects since setting up the desk in the summer, said Christos Adamantiadis, Middle East and Africa chief executive.

 

“There is exponential growth [opportunities] but it’s starting from a low base,” he said. “We have already some traction. We have found a few projects in Africa but it’s not restricted to Africa. There’s also Chinese investment in the Middle East. Our main focus is China and Chinese contractors and principles.”

 

Africa and the Middle East are an important part of Chinese President Xi Jinping’s Belt and Road initiative, a $126 billion plan to bolster a network of infrastructure connecting China by land and sea to Southeast Asia, Central Asia, the Middle East, Europe and Africa.

 

Banks Standard Chartered, HSBC and Citigroup already have China desks in the emirate.

 

Elsewhere in the Middle East, Adamantiadis said in 2019 Marsh hopes to receive an insurance broking licence in Iraq, where infrastructure needs to be rebuilt after a nearly four-year war against the Islamic State.

 

($1 = 0.7895 pounds)

 

 

First Quantum Minerals plans 2,500 layoffs in Zambia over tax hikes

LUSAKA (Reuters) - Canada’s First Quantum Minerals (FQM) said on Friday that it would lay off 2,500 workers in Zambia over plans by Africa’s No.2 copper producer to hike mining taxes.

 

The southern African country 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.

 

The layoffs point to a further escalation of tension between the government and the mining industry in a country where the sector accounts for more than 70 percent of Zambia’s foreign exchange earnings.

 

FQM said in a statement that it planned 1,250 layoffs at its Sentinel Mine at Kalumbila and 1,250 at the Kansanshi mine in Solwezi in the first quarter of 2019, as well as an unspecified number of contractors.

 

Zambia’s local mining body said on Thursday that Zambia was pricing itself out of the global mining market with the proposed tax hikes, which are aimed at bringing down mounting public debt.

 

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.

 

 

South Africa's Transnet partially reopens coal export line after derailment

JOHANNESBURG (Reuters) - South African state freight rail company Transnet on Sunday reopened one of two coal export lines after the derailment of a 200-wagon train last week.

 

“The team remains hard at work repairing the number one line. It is still too early to give an estimate of when this line will re-open,” the company said.

 

 

 

BP green-lights Africa's deepest offshore LNG project

LONDON (Reuters) - BP and its partners have given the green light for the development of a large gas project off the coast of Mauritania and Senegal, a first for the two West African nations.

 

The Greater Tortue Ahmeyim development, Africa’s deepest at 2 kilometres below the sea’s surface, will consist of a complex floating vessel with a plant to super-chill natural gas into liquid, BP said in a statement.

 

This is the second major LNG project to get the go-ahead this year as energy companies bet on a sharp rise in gas demand, with rival Shell also deciding to press on with the development of a plant in western Canada.

 

The Tortue floating liquefied natural gas (FLNG) facility will produce 2.5 million tonnes of LNG per year. The field holds total gas resources estimated at around 15 trillion cubic feet.

 

Work on the project will begin in the first quarter of 2019, and first gas is expected to be produced in 2022.

 

The Tortue go-ahead was given after the governments of Mauritania and Senegal reached an agreement over the sharing of production from the development.

 

BP is the project’s operator, with a 60 percent stake in the development in Senegal and 62 percent in Mauritania. Other partners include Kosmos Energy, with a 30 percent stake in Senegal and 28 percent in Mauritania.

 

Societe des Petroles du Senegal (PETROSEN) and Societe Mauritanienne Des Hydrocarbures et de Patrimoine Minier (SMHPM) each hold a 10 percent stake on their side.

 

BP’s trading arm has been selected as the sole buyer of the project’s LNG.

 

 

Boeing, Green Africa Airways commit for up to 100 737 MAX 8 aircraft

(Reuters) - Boeing Co and Nigeria’s Green Africa Airways have committed for up to 100 737 MAX 8 aircraft, in a deal that carries a list price of $11.7 billion.

 

The deal is the largest aircraft agreement from Africa, and will be reflected on Boeing’s Orders and Deliveries website once finalized, Boeing said.

 

The commitment is evenly split into 50 firm aircraft and 50 options, it added.

 

The 737 MAX 8 is the fastest-selling airplane in the Boeing fleet, accumulating more than 4,800 orders from over 100 customers worldwide.

 

Airlines in Africa will require 1,190 new airplanes as the continent boosts both intra-continental and intercontinental connectivity over the next couple of decades, Boeing said, citing its 20-year Commercial Market Outlook.

 

 

South African rand on course for weekly gains, stocks up

JOHANNESBURG (Reuters) - South Africa’s rand was on course on Friday for a gain on the week despite the dollar’s bounce as markets remained wary of pushing the greenback higher with the threat of a U.S. government shutdown and lower bond yields weighing on sentiment.

 

Stocks ended higher, helped by gains in bourse heavyweight Naspers.

 

At 1515 GMT, the rand traded at 14.3550 per dollar, 0.28 percent stronger than its previous close. The rand is on course for a 0.22 percent gain against the dollar this week.

 

Analysts at NKC African Economics said in a note that the rand was mostly range bound in the week.

 

“The rand initially benefited from a weaker U.S. dollar, thanks to bets that the (U.S. Federal Reserve) would ease its monetary policy considering the recent correction in global equity prices,” they said.

 

“However, the rand pared gains later in the week as the Fed was not dovish enough to the market’s liking and uncertainty over the Brexit deal and a possible U.S. government shutdown weighed on risk sentiment.”

 

The rand touched 14.1100 on Wednesday, its strongest level for the week thanks to a weaker dollar. A rebound in the dollar on Friday saw the South African currency weakening to a session low of 14.5050 before staging a recovery.

 

In fixed income, the yield on the benchmark government bond maturing in 2026 ended flat at 9 percent.

 

On the bourse, the Top-40 index rose 0.44 percent to 45,554, while the broader all-share was up 0.16 percent to 51,430.

 

Naspers rose 2.77 percent to 2,880 rand after Hong Kong-listed technology giant Tencent, in which it has 31 percent stake, closed higher.

 

Tencent’s shares surged on Friday after a China regulatory official said some new video games had been cleared for sale, ending a lengthy freeze in approvals that has spooked players in the world’s largest gaming market.

 

 

US stock markets rally after pre-Christmas slump

Stock markets in the US have seen significant rises, with the Dow Jones up by nearly 5% and the technology-focused Nasdaq rising by nearly 6%.

 

In Asia, markets were following suit on Thursday, with Japan's Nikkei 225 up more than 3% in early trade.

 

It contrasts strongly with the run-up to Christmas when stocks suffered their worst weekly falls in a decade.

 

Analysts say data from MasterCard showed US holiday retail sales up 5.1%, the strongest growth in six years.

 

Confidence was also boosted by White House assurances that Federal Reserve chairman Jerome Powell's job was safe.

 

Investors have been concerned by reports that President Donald Trump had discussed firing Mr Powell.

 

US shutdown could stretch into new year

Fed raises rates despite Trump opposition

The partial US government shutdown and continuing US-China trade tensions also contributed to the recent downturn.

 

"The market is extremely oversold where we left it [on Monday]," said Brett Ewing, chief market strategist at First Franklin Financial Services, based in Florida.

 

"You cannot make the assumption that this correction is over, but today's action is definitely a very positive signal."

 

On Monday, President Trump lashed out at the Federal Reserve, the US central bank, as the stock market plunged.

 

The president said the Fed was "the only problem" of the US economy.

 

White House economic adviser Kevin Hassett later tried to calm Wall Street jitters, telling ABC News that Mr Powell's job was "100%" safe.--BBC

 

 

Japan's Nikkei index slides amid US uncertainty

Japan's main stock market index has plunged, reflecting traders' worries following a slide on Wall Street.

 

The Nikkei closed down 5% on Tuesday, its worst finish since April 2017. Indexes in Shanghai, Bangkok and Taiwan also fell.

 

Investors have been concerned about President Trump's dispute with the US central bank chief and another government shutdown.

 

US stocks had their worst Christmas Eve on record.

 

The Dow Jones index of 30 leading companies fell more than 650 points on Monday, and is on track for its worst December since 1931, during the Great Depression.

 

Many financial markets in Asia, Europe and North America are closed on Tuesday for Christmas.

 

In China, the Shanghai composite index fell more than 2% on Tuesday morning.

 

What triggered the falls?

The Asian markets are believed to be largely reacting to movement in the US and an ensuing shares sell-off by concerned investors.

 

US-China trade tensions are a factor, as well as reports that President Donald Trump has discussed firing the chairman of the US central bank, Jerome Powell.

 

The US government has also entered partial shutdown, after Congress refused to fund President Trump's planned US-Mexico border wall.

 

The president reportedly wanted to fire Fed chairman Jerome Powell, but it is unclear whether he has the authority to do so

What has Trump said?

On Monday, President Trump lashed out at the Federal Reserve, the US central bank, as the stock market plunged.

 

The president said the Fed was "the only problem" of the US economy.

 

Five big things from Trump’s head-spinning week

US shutdown could stretch into new year

Mr Trump continually boasted about Wall Street's steep climb during the first year of his presidency, but has sought to deflect blame since markets hit a rough patch in 2018.

 

Soothed or spooked?

On Sunday US Treasury Secretary Steven Mnuchin took the unusual step of calling the chief executives of America's six largest banks in a bid to soothe market jitters.

 

Afterwards, the Treasury shared a statement about Mr Mnuchin's phone call, confirming that the banks' chief executives had "ample liquidity available for lending to consumer, business markets, and all other market operations".

 

"The markets continue to function properly," it added.

 

Analysts warned the unexpected statement could make investors nervous.

 

On Monday, Mr Mnuchin called top market regulators and officials from the US central bank to allay fears.

 

US stocks suffer worst week in a decade

Not a very merry Christmas

Analysis by Samira Hussain, business reporter, BBC News, New York

 

It is rare for a US treasury secretary to make public his discussions with American financial institutions. But that is exactly what Mr Mnuchin did.

 

He was attempting to ease financial markets but Monday's swoon showed he did the opposite.

 

So then President Trump weighed in by tweet and renewed his criticism of the Federal Reserve. That did not have the desired effect either. Instead of the typical Santa Rally, we saw US investors flee stocks for safety.

 

Not exactly the Christmas cheer the White House was hoping for.

 

What does this mean for 2019? A lot will depend on what happens in Washington: government shutdown, simmering trade tensions and the president's tweets.

 

One thing has been made very clear: if the White House wants to calm nervous investors, it's going to need to get much better at its messaging.-BBC

 

 

RBS applies for German banking licence ahead of Brexit

Royal Bank of Scotland has applied for a German banking licence to help it retain clients in the European Union in the event of a no-deal Brexit.

 

The move applies to all its subsidiaries, but would only affect NatWest, which trades across the bloc.

 

RBS, which already has a Dutch licence, said it would allow it to continue operating freely across the EU.

 

The state-owned bank is the latest financial services company to set up an EU hub in response to Brexit.

 

Bank urges Brexit 'contingency plans'

Brexit prompts Credit Suisse to move jobs

Lloyds Banking Group is to set up three subsidiaries in Berlin, Frankfurt and Luxembourg, while Barclays is expanding its Dublin office.

 

Under the plan, RBS will upgrade its current branch in Frankfurt with a new licensed unit.

 

It will be responsible for processing and settling euro-denominated payments and offering loans to large German companies.

 

It would also allow RBS to maintain its ties to Germany's central bank and continue benefiting from passporting rights that give financial services firms cross-border access to EU clients.

 

No jobs are expected to be moved through the plan, but 12 positions will be created in Frankfurt.

 

Some 37 UK based financial institutions have applied to the European Central Bank for new licences, or to extend existing ones, ahead of Brexit.

 

Of these, 30 have chosen Frankfurt as their European base, with about €800bn (£711bn) of assets expected to be moved to the city before Britain quits the bloc on 29 March 2019.

 

Earlier in December, RBS announced it is to shift £13bn worth of business to the Netherlands in the event of a no-deal Brexit.

 

About a third of the customers for its investment banking unit, NatWest Markets, will move to the lender's new Dutch subsidiary by 4 March.

 

 

Huawei's kit removed from emergency services 4G network

BT has confirmed that equipment made by Huawei is being removed from the heart of a communication system being developed for the UK's police forces and other emergency services.

 

It follows a statement from BT earlier this month that it was swapping out the Chinese firm's kit from the "core" of its 3G and 4G mobile networks.

 

The Sunday Telegraph was first to report the latest development.

 

It said the move could extend work on the late-running £2.3bn project.

 

BT is covering the cost of the switch. It does not believe the changeover will lead to a further delay.

 

Priority access

The Emergency Services Network (ESN) was originally due to be completed by the end of 2019.

 

At that point it was meant to replace an existing Motorola-owned radio system called Airwave, which is used by the police, fire and rescue, and ambulance services.

 

The ESN is intended to give its users "secure" priority access to EE's 4G network, which is being extended via additional radio frequencies in rural areas and new mast sites. It should be cheaper to run than Airwave while also providing superior voice and data capabilities.

 

But the effort is overrunning, and in September the Home Office announced that it would pay for use of Airwave until the end of 2022 with scope for a further extension if required.

 

EE won the contract to roll out the ESN in 2015, a year before the network provider was acquired by BT.

 

Since then, it has become subject to a BT policy that Huawei's kit should not be used at the core of its mobile networks to push customers' data about.

 

It has been claimed that Beijing could make Huawei disrupt services that use its kit in the event of an international dispute

Instead, BT limits the equipment to periphery parts such as phone mast antennas.

 

"We have ongoing plans to swap to a new core network vendor for ESN, in line with BT's network architecture principles established in 2006," a spokesman for EE told the BBC.

 

"This will be managed with no disruption to the ESN service."

 

He added that it was still EE's intention to offer "full capability" of the system by 2020.

 

BT has not been explicit about the reasons behind its policy.

 

But security concerns have been raised about the use of Huawei's network infrastructure products, with the chief of MI6 Alex Younger recently saying Britain needed to decide how comfortable it was "with Chinese ownership of these technologies".

 

Even so, the Financial Times reported last week that telecoms executives are opposed to an outright ban, warning that such a move would set back deployment of 5G in the UK by up to a year.

 

Huawei has repeatedly rejected suggestions that it poses a risk and denies having ties to the Chinese government beyond those of being a law-abiding taxpayer.--BBC

 

 

Bigger discounts expected as shops try to boost sales

Bigger discounts than normal are expected in the traditional Boxing Day sales, as shops try to make up for weak trading in the lead-up to Christmas.

 

On top of widespread deductions already offered by retailers, they will be forced to cut prices further to get rid of unwanted stock, say analysts.

 

Average discounts of "at least 52% off from Boxing Day" have been predicted by management consultancy Deloitte.

 

Market researchers including Mintel and Springboard also expect big discounts.

 

"Yes, there will be further deeper discounts on Boxing Day, that's when it's all got to go," said Richard Perks, director of retail research at Mintel.

 

However, he cautioned that the sales would be "pretty selective" and largely focused on winter items that have not sold already.

 

"It'll be things like overcoats, party wear and shoes," he says.

 

Boxing Day sales are traditionally a way for shops to get rid of unwanted products, so they can bring in new stock but also, crucially, cash to pay for the new stock.

 

"Post-Christmas sales are incredibly important for a retailer just to keep their houses in order," says Mr Perks.

 

The latest figures for Christmas Eve show that by midday, the number of shoppers overall visiting High Street shops, shopping centres and retail parks was up 6.8% on last year.

 

Springboard - which produces the figures - said shoppers were likely to have been tempted by the "opportunity to take advantage of the additional discounts introduced by retailers."

 

Why are there so many pre-Christmas sales?

When is a sale actually a sale?

'Super Saturday' fails to boost retailers

Independent retail analyst Richard Hyman said the high level of pre-Christmas discounting showed the industry was "very distressed".

 

"Discounts have come earlier, because retailers have far too much stock and not enough cash," he said.

 

He says the number of retailers on sale, the discounts being offered and the proportion of stock involved are all higher than he has seen in his 35 years working in the retail sector.

 

Many of the shops are now offering money off most of the time, meaning traditional sales like Boxing Day have become "rather meaningless", he says.

 

This eternal discounting also means customers are now encouraged to put off purchases, because they know if they wait, the price will come down.

 

When are shops starting their Boxing Day sales?

Marks & Spencer - Its sale will launch at 17:00 online on Christmas Eve and in stores as soon as they open after Christmas on either 26 December or 27 December.

 

John Lewis - Its clearance sale will begin online on Christmas Eve and in shops from 27 December.

 

Next - Its online sale will kick off on Christmas Eve at 17:00 while the in-store sale starts at 06:00 on 26 December.

 

Debenhams - Its sale has already started online and will begin in shops from Boxing Day

 

AO World - Its sale has already started online

 

The currently level of discounting means that it's a pretty tough environment for retailers, many of which already operate on thin profit margins.

 

Online fashion retailer Asos recently blamed "unprecedented" discounting for hurting November trading, which it said would lead to weak profit for the full year.

 

Leading brands including Primark, Ted Baker and John Lewis have also all warned of a slump in sales.

 

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

 

The problem is that customers have become immune to sales, says Diane Wehrle, marketing and insights director at Springboard.

 

She said most shops went into their "last [final] discounts" after Saturday and the already large discounts on offer mean shops will be cutting prices from a lower-than-normal starting point.

 

Ms Wehrle also predicts that the traditional Boxing Day period of sales will last much longer than normal.

 

"There will always be a proportion of retailers continually on sale, there will always be discounting going on," she said.

 

"That's the problem for retailers. Because we're expecting a discount, we hold off waiting for the bottom to reappear, so retailers are not selling what they need to sell quickly enough."

 

For consumers, that means holding off could pay off, says Jason Gordon, lead consumer analytics partner at Deloitte.

 

He says that given the current business uncertainty, many shops are likely to extend their Christmas sales "deep into January, with some having little option but to run through early February and even beyond".

 

How that affects retailers will become clear in the new year with some retailers likely to be forced to close stores and renegotiate debts to survive.

 

Mr Hyman predicts many will have difficult talks with their banks.

 

"The big question is to what extent do the banks want to increase their exposure to an industry having a really difficult time," he asks.--BBC

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

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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