Major International Business Headlines Brief::: 28 December 2018

Fri Dec 28 06:27:04 CAT 2018

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Major International Business Headlines Brief::: 28 December 2018

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*  End to Nigerian dispute lifts shares in South Africa's MTN

*  South Africa's rand little changed in light year-end trade, MTN leads stocks higher

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

*  US stock markets rally after slide

*  Huawei: 'Deep concerns' over firm's role in UK 5G upgrade

*  Tech became 'darker and more muddy' in 2018

*  Gatwick Airport: Majority stake sold to French firm

*  Anak Krakatau: Indonesia flights rerouted as volcano alert level raised

*  Japan whale hunting: Commercial whaling to restart in July

*  BAE Systems to recruit 700 apprentices

*  Plastic bag fee 'to double to 10p' and include every shop

*  Boxing Day sales: Footfall down for third year, analysts say

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End to Nigerian dispute lifts shares in South Africa's MTN

JOHANNESBURG (Reuters) - Shares in South African telecoms giant MTN jumped 8 percent on Thursday after it settled a row with Nigeria’s central bank for a fraction of the $8.1 billion it had threatened to cost.

MTN announced on Monday that it would pay just $52.6 million to end the dispute in Nigeria, its biggest and most lucrative market, but also its most troublesome.

The case had dogged MTN, Africa’s biggest telecoms company, for four months, dragging its share price down 20 percent to hover around its lowest level since 2009 while also sparking pessimism around the ease of doing business in Nigeria.

It centred on allegations that dividends paid by the firm between 2007 and 2015 were based on improperly issued certificates.

The Central Bank of Nigeria (CBN) had initially ordered MTN and its lenders to bring back $8.1 billion it alleged the company had illegally repatriated to South Africa during that time.

But after MTN provided additional documents, the central bank concluded only one 2008 private placement, worth around $1 billion, was irregular. MTN agreed to pay $52.6 million as a “notional reversal” of this transaction.

“MTN Nigeria will pay the notional reversal amount without admission of liability,” it said in a statement on Monday, announcing the settlement.

The central bank’s initial order threatened to wipe out more than half of MTN’s market capitalisation at the time it was issued in August, and spooked investors just as the company was trying to reassure them of its frontier market-focused strategy after a series of costly legal problems.

MTN shares were up 4.34 percent to 89.21 rand at 1055 GMT on Thursday, after rising more than 8 percent to highs of 93 rand in the first trading session since the settlement was announced.

DIFFICULT MARKET

MTN is Nigeria’s biggest operator, with 52.3 million users in 2017, and the country accounts for one third of the firm’s annual core profits. But it has also proven problematic.

While the settlement marks a turning point in MTN’s fortunes in the country, the telecoms heavyweight still has to fight a $2 billion tax bill from Nigeria’s attorney general.

It also comes two years after the firm paid $1 billion for missing the deadline to cut off unregistered SIM cards - a fine that prompted its first ever annual loss.

MTN was also previously accused of illegally repatriating $14 billion to its parent company, but was cleared of the allegations.

The latest dispute cemented concerns about firms’ ability to effectively operate in Nigeria, where a sluggish economy, strained public finances and upcoming elections have also left some questioning the motives behind such cases.

“Why did it take the CBN several years to ‘discover’ this and confront MTN?” said Dobek Pater, a director at consultancy Africa Analysis, adding this at least suggests negligence or a lack of competence at the central bank.

“Sometimes the government (government organisations’) interpretation of the law/regulations can be speculative to suit their ends,” he told Reuters via email.

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South Africa's rand little changed in light year-end trade, MTN leads stocks higher

JOHANNESBURG (Reuters) - South Africa’s rand was largely flat in mid-morning deals on Thursday as traders refrained from making any large moves in light year-end trade.

At 0841 GMT, the rand traded at 14.4600 versus the dollar, 0.6 percent stronger than its overnight New York close.

“We can expect some volatility with the rand potentially pulling back to R14.40 as the risk aversion tapers off and the dollar remains under pressure,” said Bianca Botes, corporate treasury manager at Peregrine.

Government bonds also barely moved, with the yield on the benchmark instrument maturing in 2026 down 4 basis points at 8.960 percent.

Stocks were a touch higher, with the Johannesburg Stock Exchange’s Top-40 index up 0.4 percent led by MTN Group after the company settled a multibillion dollar dispute with Nigeria.

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.

US stock markets rally after slide

US stock markets rallied late on Thursday to end in positive territory, continuing their roller coaster ride towards the end of the year.

In Asia, most markets were following suit except Japan's Nikkei 225, which was down 0.5% in Friday morning trade.

Markets have been volatile as global, political and economic uncertainty continues to haunt investors.

The Dow Jones - which fell by more than 500 points or 1.8% earlier on Thursday - finished the trading day 1.1% up.

The S&P 500 and tech-heavy Nasdaq also rallied by the end of the Thursday's trading day.

The S&P 500 had fallen by 48 points or 2% at one point, while the Nasdaq also sank by more than 2% or 135.4 points.

The earlier sell-off was sparked by weak US consumer confidence data for December. However, analysts had cautioned that volatile share price movements were exacerbated by thin holiday trading.

Earlier, European markets slumped in their first post-Christmas trading session.

London's FTSE 100 slid as the day progressed, ending 1.5% down, with UK shares at their lowest in over two years.

Frankfurt's Dax was 2.8% lower, while the Cac 40 in Paris suffered a smaller fall, down just 1.1%.

Concerns about US-China trade tensions also resurfaced, with reports saying US President Donald Trump is considering an executive order banning the use of Chinese technology.

The US, Australia, Japan and New Zealand have restricted use of ZTE and Huawei equipment in 5G mobile networks, and the UK is now considering doing the same.

On 20 December, the US indicted two Chinese men accused of hacking into computer networks of Western companies and government agencies, and accused Beijing of cyber-spying.--BBC

Huawei: 'Deep concerns' over firm's role in UK 5G upgrade

The Defence Secretary has reportedly said he has "very deep concerns" about Chinese firm Huawei being involved in upgrading the UK's mobile network.

Gavin Williamson's comments - reported by the Times - came after some nations restricted use of the firm's products in 5G networks over security concerns.

MI6's head recently said Britain faced decisions on Chinese ownership of tech.

The UK says China is behind hackers targeting commercial secrets. Huawei denies any link to the Chinese state.

On Wednesday, Mr Williamson was reported as saying: "I have grave, very deep concerns about Huawei providing the 5G network in Britain. It's something we'd have to look at very closely."

Australia, New Zealand and the US have restricted use of Huawei technology in 5G mobile networks, and Mr Williamson said the UK would look at their example.

"We've got to recognise the fact, as has been recently exposed, that the Chinese state does sometimes act in a malign way," he added.

*         What's going on with Huawei?

*         Should we worry about Huawei?

*         Why has the UK not blocked Huawei?

*         BBC World Service - Huawei: Who are they?

*         Huawei was founded by a former officer in the People's Liberation Army but the company denies having any ties to the Chinese government, beyond complying with tax laws.

The firm has strongly rejected any suggestion that it poses a security threat, saying it has "never been asked by any government to build any backdoors or interrupt any networks".

Earlier this month, MI6 chief Alex Younger said the UK needed to "decide the extent to which we are going to be comfortable with Chinese ownership of these technologies".

UK communications company BT has already said it is removing Huawei equipment from its 3G and 4G networks, and pledged not to use the firm's products in the "core" of its 5G service.

'Cyber intrusions'

This week it confirmed that Huawei equipment was being removed from the heart of a communication system being developed for the UK emergency services, although it was not explicit as to why.

On 20 December, the US indicted two Chinese men accused of hacking into computer networks of Western companies and government agencies, and accused Beijing of cyber-spying.

UK Foreign Secretary Jeremy Hunt described the men's actions as "one of the most significant and widespread cyber intrusions against the UK and allies uncovered to date".

The Foreign Office said hackers acting on behalf of the Chinese Ministry of State Security were stealing commercial secrets from firms in Europe, Asia and the US.

Officials said their activities were so extensive, they were "putting at risk" economic growth in the UK and the wider global economy.--BBC

Tech became 'darker and more muddy' in 2018

Data abuse has "darkened" technology's potential, the EU's Competition Commissioner has warned.

In an interview for the BBC's Today programme, Margrethe Vestager criticised the tech giants for misusing data and failing to respect citizens' rights.

New EU rules governing what could be done with data provided some protection, she said.

But she added that the need for more concerted action was becoming pressing.

"Over these 12 months our relationship with tech has both been darker and more muddy because it becomes increasingly clear that all the bright and shiny positive potentials of tech are at the risk of being darkened by forced misuse of data, manipulation, supervision, no respect of the citizen, no respect of individual rights," she told Martha Lane Fox who carried out the interview.

"There is an increasing awareness of the fact that we really need to do something and to do that together."

Baroness Lane-Fox, who is a board member of Twitter, is guest editor of this morning's Today radio programme on BBC Radio 4.

Baroness Lane-Fox of Soho co-founded Lastminute.com before becoming a crossbench peer

Privacy laws

The past year's scandals have included:

*         Facebook having to apologise for letting 87 million users' details be harvested, many of which were obtained by the political consultancy Cambridge Analytica

*         Twitter, Facebook and YouTube facing up to evidence that their platforms had been used by Russia and others to manipulate voters in the West

*         the EU fining Google a record €4.3bn ($5bn; £3.9bn) for using Android to illegally defend its dominance in search

*         The tech firms' actions had changed views about how the industry could influence people and society, said Ms Vestager.

The EU's General Data Protection Regulation, which came into force in May 2018, gave people new privacy rights and more control over their data, but more work was needed, said Ms Vestager.

The civil service was now talking about ways to force tech firms to be more "transparent" about what they did with data gleaned from people's uploads, shares and views, she added.

But Ms Vestager described herself as being positive about the future.

"One thing I do hope over the next 10 years is that we get a much more... transparent way of dealing with data and giving access to data," she said.

"I tend to be an optimist by choice. I think it's a moral obligation because pessimists don't seem to get anything done."

*         Google hit with record €4.3bn Android fine

*         Google appeals against €4.3bn Android fine

*         EU 'looking into' Amazon's use of data

*         Facebook's data-sharing deals exposed

But failure to act, Ms Vestager cautioned, could lead to situation in which one or two massive firms dominated use of our personal data.

Baroness Lane-Fox asked if this meant that the commission would take concrete steps to break up monopolies or tackle markets where dominance stifled competition.

Commissioner Vestager responded that while dismantling companies had served Brussels well in the past, the speed at which changes occurred in the tech sector made it a less appropriate response.

Instead, she said, the commission might look at how larger firms got access to data and resources in a bid to limit their power.

Regarding Brexit, Ms Vestager noted that European competition authorities had become stronger by working together.

But she added that the UK had "clever skilled people with a very strong dedication" to making sure the market served consumers.--BBC

Gatwick Airport: Majority stake sold to French firm

A majority stake in Gatwick Airport is to be sold to French operator Vinci Airports for £2.9bn.

Vinci Airports, part of infrastructure group Vinci, will buy 50.01% of the UK's second-busiest airport.

The other 49.99% will be managed by current owners Global Infrastructure Partners (GIP).

The airport was closed in the run-up to Christmas after reports of drone sightings, in what is thought to be the most disruptive incident of its kind.

Flights were grounded and about 140,000 passengers affected over three days during the incident.

In 2016, Gatwick's expansion plans were dealt a blow when the government rejected its proposal for a new second runway while giving the go-ahead for Heathrow to build a third runway.

Gatwick was acquired by a GIP-led consortium in 2009.

More than 45 million passengers travel through Gatwick each year, flying to 230 destinations in 70 countries, according to its website.

'Resilient' pledge

The deal would make Gatwick the largest airport in Vinci's network, which will grow to 46 airports in 12 countries - with a total traffic of about 228 million passengers a year, according to the company.

It follows Vinci's takeover of Airports Worldwide's portfolio earlier this year, which included Belfast International and stakes in 12 airports across the US.

Commenting on recent disruption at Gatwick, Nicolas Notebaert, president of Vinci Airports, said he had "every confidence" in the teams currently in place.

"We will of course work with the airport operational team and the existing shareholders to make Gatwick as resilient as it can be in the face of these new risks," he added.

Analysis by Theo Leggett, BBC business correspondent

Before Christmas, Gatwick was in the public eye for all the wrong reasons. It was brought to a standstill and around 1,000 flights were cancelled due to apparent drone activity.

But the fact remains, London's second airport is potentially a lucrative asset. It handles more than 45 million passengers every year and makes hundreds of millions of pounds in profit.

Vinci says it also offers "significant potential for growth". The question is, where will that growth come from? Gatwick is already operating at a high level of efficiency, squeezing the maximum number of landings and takeoffs from its single runway. Its proposal to build a second runway was rejected by the government in 2016.

But it has a back-up idea. Earlier this year, it set out a "masterplan" for the future - which suggested that an emergency standby runway could be expanded and brought into daily use, to increase capacity.

That would certainly be a controversial move - but if it succeeded, there could be major benefits for Vinci. So perhaps the French firm thinks it's worth a gamble.

US-based GIP said it expected the transaction to be completed "by the middle of next year".

The executive team at Gatwick, including chief executive Stewart Wingate, is to be unchanged.--BBC

Anak Krakatau: Indonesia flights rerouted as volcano alert level raised

The alert level for Indonesia's Anak Krakatau volcano has been raised to the second-highest level possible, after a series of eruptions.

All flights around the volcano have been rerouted and a 5km (three-mile) exclusion zone has also been imposed.

Indonesia's disaster management agency (BNPB) said the alert level had been raised from level two to three because of the increased volcanic activity.

Last Saturday, the volcano triggered a tsunami which killed hundreds.

"The volcanic activity of Anak Krakatau continues to increase," said BNPB in a press statement, citing data from the Volcanological Survey of Indonesia.

"The danger zone [has been] extended from 2km to 5km... people and tourists are prohibited from carrying out activities within a 5km radius."

How are flights being disrupted?

Air traffic control agency AirNav Indonesia said it was closing flight routes because the volcanic ash Krakatau was spewing meant the situation was on "red alert".

An AirNav operations manager told the BBC that between 20 and 25 flights were affected, including some international flights to and from Australia, Singapore and the Middle East.

He said that the disruption was likely to be minimal, although passengers may experience longer journeys and aircraft may need more fuel because of the diversions.

What is happening with the volcano?

Authorities say that Anak Krakatau has become increasingly active with what are known as Strombolian eruptions - short-lived, explosive blasts of lava - being emitted.

'I lost my five-year-old to the tsunami'

BNPB has now imposed a 5km exclusion zone around the volcano, which rises from the sea in the Sunda Straits between Java and Sumatra.

Nobody is believed to be inside that danger zone, but residents that live on both sides of the strait are being told to stay away from beaches due to fears of another tsunami.

Strong winds are carrying thin volcanic ash spewed by the volcano to neighbouring areas, but authorities have stressed this is "not dangerous" and are advising residents to wear masks and goggles.

The volcano has been rumbling on and off since July but has been particularly active since last week.

The agency adds that there may be a new crater hole under the sea and that explosions are ongoing, with eruption sounds heard several times a minute.

What happened with the tsunami?

On Saturday, vast waves engulfed coastal towns on the islands of Sumatra and Java leaving at least 430 dead and more than 150 missing.

It destroyed hundreds of buildings, sweeping away cars and uprooting trees in several popular tourist destinations.

At least 16,000 people still remain displaced and rescue workers are struggling to reach remote areas of the country that have been hit by the tsunami.

Thousands of people are living in temporary shelters like mosques of schools, with dozens sleeping on the floor. A state of emergency will stay in place until 4 January.

According to some evacuees, clean water, fresh clothes and blankets are in short supply.

Aid is only starting to just reach the town of Sumur that was cut off by the tsunami, with volunteers having to piece together makeshift bridges out of concrete blocks to reach the area, reports say.

A volcanologist explains Indonesia eruption images

How volcanoes can trigger tsunamis

It is believed that volcanic activity from Anak Krakatau set off undersea landslides which in turn generated the killer waves.

Indonesia is prone to tsunamis because it lies on the Ring of Fire - the line of frequent earthquakes and volcanic eruptions that circles virtually the entire Pacific Rim.

In September, more than 2,000 people died when a powerful earthquake struck just off the central Indonesian island of Sulawesi, setting off a tsunami that engulfed the coastal city of Palu.--BBC

Japan whale hunting: Commercial whaling to restart in July

Japan says it is to restart commercial whaling in July in a move that is likely to draw international criticism.

It said it would withdraw from the International Whaling Commission (IWC), the body tasked with whale conservation.

Commercial whaling was banned by the IWC in 1986 after some species were driven almost to extinction.

Officials in Japan, an IWC member since 1951, say eating whales is part of the country's culture.

For many years Japan has hunted whales for what it calls "scientific research" and to sell the meat, a programme widely criticised by conservationists.

Wednesday's announcement had been expected, but conservation groups warn the move will have serious consequences.

It means Japan will be able to freely hunt species currently protected by the IWC, like minke whales.

What did Japan just announce?

Government spokesman Yoshihide Suga said commercial whaling would be restricted to Japanese territorial waters and economic zones.

As a result, Japan will stop hunting in Antarctic waters and the southern hemisphere, a prospect conservation groups had welcomed before it was formally confirmed.

Could the ban on killing whales end?

Japan and the whale

A statement by Japan's government said the IWC was not committed enough to one of its goals, of supporting sustainable commercial whaling.

It accused the IWC of being focused only on the aim of conserving numbers.

A number of coastal communities in Japan have hunted whales for centuries, but consumption in the country surged only after World War Two when whales were the main source of meat. It has plummeted in recent decades.

According to Japan's Asahi newspaper, whale meat makes up only 0.1% of all meat sold in Japan.

What's been the reaction?

In a joint statement, Australia's Foreign Minister Marise Payne and Environment Minister Melissa Price said they were "extremely disappointed" with Japan's decision.

"Australia remains resolutely opposed to all forms of commercial and so-called 'scientific' whaling," the statement added.

Before the formal announcement was made, Nicola Beynon, head of campaigns at Humane Society International in Australia, said Japan would be "operating completely outside the bounds of international law".

She added: "This is the path of a pirate whaling nation, with a troubling disregard for international rule."

Greenpeace Japan urged the government to reconsider, and warned it would risk criticism as the host of the G20 summit in June.

Sam Annesley, Greenpeace Japan's executive director, said: "It's clear that the government is trying to sneak in this announcement at the end of year, away from the spotlight of international media, but the world sees this for what it is.

"The declaration today is out of step with the international community, let alone the protection needed to safeguard the future of our oceans and these majestic creatures."

What is the current whaling ban?

In 1986, IWC members agreed to a moratorium on hunting to allow stocks to recover.

Pro-whaling nations expected the moratorium to be temporary, until consensus could be reached on sustainable catch quotas.

Instead, it became a quasi-permanent ban. Whaling nations, such as Japan, Norway and Iceland, however argue the practice is part of their culture and should continue in a sustainable way.

Today, whale stocks are carefully monitored, and while many species are still endangered, others - like the minke whale that Japan primarily hunts - are not.

Japanese whaling: why the hunts go on

In September, Tokyo tried to get the IWC to allow commercial catch quotas but the proposal was rejected.

Can Japan just leave?

It will still be bound by certain international laws, despite leaving the IWC.

The UN Convention on the Law of the Sea binds countries to co-operate on the conservation of whales "through the appropriate international organisations for their conservation, management and study". The text does not say which international organisation that is.

Japan could either try to set up another international body if it manages to get enough other countries to sign up - or join an existing one like the North Atlantic Marine Mammal Commission (Nammco) instead.

Like a smaller version of the IWC, Nammco is a grouping of pro-whaling nations - Norway, Iceland, Greenland and the Faroe Islands - born out of frustration with the IWC.

Hasn't Japan been whaling all along?

Yes, Japan has been hunting whales for the past 30 years but under a scientific programme, granted as an exception under the IWC ban.

Critics say the practice is a cover for what actually amounts to commercial whaling.

It means that whales can be taken for scientific studies and the meat can later be sold for consumption.

Japan has caught between about 200 and 1,200 whales each year, saying it is investigating stock levels to see whether the whales are endangered or not.

Why can't the IWC agree?

Japan has repeatedly tried to overturn the moratorium and secure agreement on sustainable catch quotas.

The last attempt to do so came in September at an IWC summit in Brazil.

Japan offered a package of measures, including setting up a Sustainable Whaling Committee and sustainable catch limits "for abundant whale stocks/species".

The proposal was voted down. Since then there has been talk of the country simply leaving the body so it will no longer be bound by its rules.--BBC

BAE Systems to recruit 700 apprentices

BAE Systems plans to recruit nearly 700 apprentices in 2019, up by almost a third on this year.

The defence firm said the new recruits would join its air, land and maritime businesses and embark on one of 25 training programmes.

Almost half will be based at the firm's air sites in Samlesbury and Warton in Lancashire, working on projects including the Typhoon F-35.

In October last year, BAE cut 2,000 jobs, including 750 at those two sites.

Prime Minister Theresa May said she was "delighted" 700 young people would be "given the opportunity to kick-start their careers in this world-class firm".

BAE chief executive officer Charles Woodburn said: "We are proud to be one of the UK's largest employers of apprentices and our plan... reflects our ongoing commitment to nurturing talent and developing high-end skills for the future."

Last year the firm, which employs 34,300 staff in the UK, announced plans to slash 2,000 jobs in military, maritime and intelligence services last year.

At the time it said it was facing an order gap for the Typhoon so wanted to slow production before an expected order from Qatar.--BBC

Plastic bag fee 'to double to 10p' and include every shop

The 5p fee for plastic carrier bags in England will be doubled to 10p, and extended to all shops, under plans set out by the environment secretary.

The change is contained in a government consultation aimed at further reducing the plastic used by consumers and could come into effect in January 2020.

Smaller retailers, who are exempt from the current levy, supply an estimated 3.6 billion single-use bags annually.

Schools in England are also being told to eliminate unnecessary plastic.

Education Secretary Damian Hinds is urging school leaders to replace items such as plastic straws, bottles and food packaging with sustainable alternatives by 2022.

In August, Theresa May promised there would be a consultation on changes to the plastic bag levy.

Environment Secretary Michael Gove said: "We want to do even more to protect our precious planet and today's announcement will accelerate further behaviour change and build on the success of the existing charge."

Since the 5p fee was introduced in 2015 for retailers with at least 250 employees, an estimated 15 billion bags have been taken out of circulation.

Trade bodies representing about 40,000 small retailers have launched a voluntary approach to a 5p charge, but this accounts for less than one-fifth of companies likely to be affected by the proposed changes.

The government wavered for years before imposing a plastic bag tax for England - but the result of the policy eventually introduced is crystal clear: taxes change behaviour.

People who previously thought nothing of carting home their supermarket shopping in half a dozen flimsy plastic bags seem appalled by the prospect of a 30p charge, and dig into their handbags for nylon bags instead.

A similar shift in behaviour will surely be seen now in local stores, although the change may be less marked because people tend to buy smaller quantities from corner shops, so may be willing to pay an extra 10p for convenience.

It's also possible that these convenience store bags disproportionately harm the environment because they're used by people picking up snacks while visiting beauty spots or beaches.

The announcement of a consultation on an increased charge is part of a broader move towards environmental taxation - an issue which can easily cause governments trouble if they don't protect the poorest from the impact of the taxes.

In Scotland, Wales and Northern Ireland, all retailers - including smaller shops - already charge a minimum of 5p for plastic bags.

The Marine Conservation Society says the levies have had an impact on reducing plastic waste on beaches and in the sea.

Reality Check: Where does the plastic bag charge go?

Could this 'biodegradable bag' cut plastic pollution?

Seven charts that explain the plastic pollution problem

Oceanographer Laura Foster, head of Clean Seas at the MCS, said: "We are able to measure the impact of legislation and we've seen that since the introduction of the plastic bag charge in the UK the amount we find on the beaches has gone down.

"That's also been replicated by studies that have been done offshore. They've also seen a reduction in the amount of plastic bags they find."

While retailers are given the choice on what to do with the money consumers pay for plastic bags, they are expected to give it to good causes. According to Defra, an estimated £51m was donated in 2017-18.

The Association of Convenience Stores, which is backing Defra's plans, says about half of the small shops it represents in England are currently charging for plastic bags.

ACS chief executive James Lowman said: "This has been shown to be highly effective at reducing waste, whilst also raising money for local, national and environmental charities."--BBC

Boxing Day sales: Footfall down for third year, analysts say

The number of people heading to the Boxing Day sales has fallen for the third year running despite some heavy discounting, retail analysts have said.

Springboard, which examines information from UK High Street and shopping centre cameras, said average footfall for the day was 3.1% lower than in 2017.

It suggested 26 December was becoming less important as a trading day.

But there were still queues for some shops from as early as midnight and the data does not include online sales.

'Super Saturday' fails to boost retailers

Bad weather hits Christmas retailing

Has it been the worst November for retailers?

And retailers in London's West End declared a "Boxing Day bounce" saying there had been a 15% increase in footfall from last year.

Black Friday impact

Shoppers on London's Oxford Street told BBC News they braved the crowds to pick up a bargain and browse products in person rather than just buying them online.

Some stores were offering discounts of as much as 70% after slow sales up to Christmas.

Springboard said in recent years Boxing Day had consistently seen fewer shoppers than the Black Friday sales at the end of November. The number of shoppers in the morning was said to be more than 9% lower than Black Friday.

However, footfall does not include online sales, which made up 21% of retail sales in November, according to the Office for National Statistics.

Black Friday has been taking the wind out of Boxing Day sales for a few years now, and retailers have been forced to slash prices even further during the festive period.

While this is good news for shoppers, analysts are concerned that struggling chains, with warehouses full of stock to shift, are now engaged in a race to the bottom, just when they need to be increasing profits.

What's worse is that there is no sign of a spending splurge on the horizon. Even online giants such as Asos have had a hard time of it lately, as household debt is growing, and people have less disposable income altogether.

One place that seems to be bucking the trend - at least today - is the West End in London. That's driven, at least in part, by lots of visitors from overseas, hoping to take advantage of the weak pound.

But across the country as a whole there are only a few days left to make up for a miserable year.

Some shops opened at 06:00 GMT, with queues of the keenest bargain-hunters having formed at 02:00.

Retailers in London's West End expect to see 500,000 shoppers over the day and £50m in sales.

Jace Tyrrell, chief executive at New West End Company, representing businesses in Bond Street, Oxford Street and Regent Street, said: "International tourists are out in force driven by the weaker pound, as well as domestic shoppers who are looking for a day out after family celebrations yesterday," he said.

Myf Ryan, chief marketing officer for Europe at Unibail-Rodamco-Westfield, which owns the Westfield shopping centres, said: "Boxing Day is always one of our peak trading days and has got off to a very busy start."

The so-called "Super Saturday" before Christmas had failed to deliver the boost that retailers hoped for, with just a 1% increase in footfall.

Retail analysts had been predicting bigger than usual Boxing Day discounts as shops tried to entice consumers back to the High Street.

Management consultancy Deloitte said it expected average discounts of 52% from retailers seeking to offload unwanted stock.

Many stores had already begun discounting before Christmas, with the rise of Black Friday stretching the sales into November.

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

Stuart McClure, of price and discount tracking website LovetheSales.com, said that online, some retailers had kept discounts running from Black Friday right up until Christmas and increasing numbers were starting their Boxing Day sales early.

"The reductions have also been deeper. Right now the average discount online stands at 43% - this is the highest it's ever been on Boxing Day," he said.

Brands including Primark, Ted Baker and John Lewis also warned of a slump in sales, while Mike Ashley, owner of Sports Direct and House of Fraser, said it was the "worst November in living memory".

Increased shopping online is thought to be one culprit: November in-store sales fell 2.6% compared with last year, while online sales rose by 18.2%, according to research by accountants and business advisers BDO.

But last-minute Christmas sales showed some signs of improvement. Ipsos Retail Performance said visits to non-food stores were up by 27.4% on Christmas Eve compared with 2017.

Stuart Rose, the former M&S boss who now chairs online supermarket Ocado, told BBC Radio 4's PM programme the "pace of change" in UK retailing in the last year had been extraordinary.

He said local authorities, governments, landlords and retailers had to work together to make British high streets a "more exciting and interesting place".--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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