Major International Business Headlines Brief::: 31 December 2018

Mon Dec 31 07:46:07 CAT 2018

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Major International Business Headlines Brief::: 31 December 2018

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*  Egypt's central bank holds interest rates

*  South Africa's trade balance swings to 3.5 bln rand surplus in November

*  South Africa's rand flat in early trade ahead of trade balance figures

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

*  Ugandan shilling trades stable as importer and banks' demand recedes

*  South Africa's rand edges up in light year-end trade

*  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

*  China says it is 'ready to work with US'

*  Huawei: China accuses UK of 'pride and prejudice'

*  Italy budget: Parliament passes budget after EU standoff

*  Tesla adds Larry Ellison to its board

*  US markets mixed after turbulent week

*  Most shoppers mistrust influencers, says survey

 <mailto:info at bulls.co.zw> 

Egypt's central bank holds interest rates

CAIRO (Reuters) - Egypt’s central bank left its key overnight interest rates steady on Thursday, keeping the deposit rate at 16.75 percent and the lending rate at 17.75 percent.

All 13 economists polled by Reuters had expected rates to remain unchanged.

“Current policy rates and the inflation outlook remain in line with achieving the targeted disinflation path,” the bank’s Monetary Policy Committee said in a statement.

“The MPC closely monitors all economic developments and will not hesitate to adjust its stance to achieve its mandate of price stability over the medium term,” it said.

Headline inflation slowed to 15.7 percent in November from 17.7 percent in October as fruit and vegetable prices declined, after rising for three consecutive months.

Core inflation, which strips out volatile items such as food, slowed to 7.94 percent in November, its lowest since April 2016, from 8.86 percent in October.

GDP grew by 5.3 percent in the fiscal year that ended in June 2018, the highest rate in 10 years.

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South Africa's trade balance swings to 3.5 bln rand surplus in November

JOHANNESBURG (Reuters) - South Africa’s trade deficit swung to 3.49 billion rand ($242.92 million)surplus in November from a revised 4.28 billion rand deficit in October, official data showed on Friday.

Exports fell by 2.3 percent on a month-on-month basis to 118.8 billion rand in November, while imports decreased 8.4 percent to 115.4 billion rand, the South African Revenue Service said in a statement.

($1 = 14.3667 rand)

South Africa's rand flat in early trade ahead of trade balance figures

JOHANNESBURG (Reuters) - South Africa’s rand was flat early on Friday, giving up its small overnight gains as renewed jitters about the impact on global growth of the simmering trade war between China and the United States kept investors on the sidelines.

At 0730 GMT the rand was steady at 14.4725 per dollar, unchanged from its overnight close in New York, having traded at a session-best of 14.4225 before fading as the local session kicked off.

The dollar remained on the back foot, down 0.1 percent, weighed down by a reversal in stocks after the sharp jump earlier in the week.

Safe-haven assets like the Japanese yen and gold were main beneficiaries of tentative global trade as concerns about slowing global economic growth and a partial government shutdown in the United States limited demand for riskier assets.

In the only local data event of the day, South Africa’s Revenue Service (SARS) publishes trade balance figures for November at 1200 GMT.

Bonds were weaker, with the yield on the benchmark paper due in 2026 up 3 basis points to 8.96 percent.

The Johannesburg Stock Exchange’s (JSE) Top-40 index opened firmer after a more than one percent slide in the previous session, rising 0.5 percent to 45,877 points.

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.

Ugandan shilling trades stable as importer and banks' demand recedes

KAMPALA (Reuters) - The Ugandan shilling was unchanged on Friday as appetite for hard currency from both goods importers and players in the interbank remained flat.

At 1042 GMT commercial banks quoted the shilling at 3,710/3,720, same level as Thursday’s close.

South Africa's rand edges up in light year-end trade

JOHANNESBURG (Reuters) - South Africa’s rand gained on Thursday against a dollar weakened by lingering concerns about the trade wrangle between United States and China, while stocks were lower as positive sentiment after an overnight rally faded.

At 1500 GMT the rand was 0.15 percent firmer at 14.5325 per dollar compared with a close of 14.5550 overnight.

The currency reached a session best 14.4500 in early trade but lacked momentum in low-volume trade to push through to technical resistance at 14.40 that traders are eyeing as a catalyst for further gains.

With politics in Washington and the sino-U.S. trade row curbing any large bets on emerging currencies going into year-end, the dollar was down 0.2 percent on the day.

Reuters reported on Thursday that the Trump administration is considering an executive order in the new year to declare a national emergency that would bar U.S. companies from using Huawei and ZTE 000063.SZ products.

South African bonds were firmer, with the yield on benchmark government paper due in 2026 down 7 basis points to 8.93 percent.

In stocks, the Top-40 index fell 1.32 percent to 45,595 points, while the broader all-share was down 1.14 percent at 51,489 points.

Financial firm Old Mutual, Bidvest and tech-giant Naspers were the biggest fallers on the blue-chip index, each down more than 3 percent.

Shares of telecoms giant MTN led the gainers, jumping as much as 8 percent in its first trading session since it agreed to pay $53 million to settle a row with Nigeria’s central bank that had threatened to cost it billions.

At the close, MTN shares were 3.32 percent higher at 884.30 rand.

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.

China says it is 'ready to work with US'

China has said it is "ready to work" with the US, suggesting progress in trade talks between the two countries.

It said it would be willing to work with the US to "implement the important consensus" reached at December's G20.

At the Buenos Aires summit the two countries agreed to suspend new trade tariffs for 90 days to allow for talks.

China's statement comes after President Donald Trump tweeted "big progress" was being made in relations after a call with Chinese President Xi Jinping.

In Saturday's tweet, the US president said "talks were moving along very well".

Sunday's statement from Lu Kang, the spokesperson for the country's foreign ministry, appeared to confirm President Trump's optimism.

"China stands ready to work with the US to implement the important consensus reached by President Xi Jinping and President Trump in Argentina, expand co-operation on the basis of mutual benefit, manage differences on the basis of mutual respect," Mr Lu said.

Prior to the G20 meeting in Argentina, the US had warned it was considering 25% tariffs on $200bn (£152bn) of Chinese goods - more than double the 10% initially planned.

The White House says the tariffs are a response to China's unfair trade policies, which Mr Trump blames for helping to create a huge trade deficit.

What's the background to the trade war?

Mr Trump campaigned for president on a pledge to make trade fairer for the US, and repeatedly blamed China's trading practices for making American manufacturers less competitive.

US-China trade war in 300 words

The impact of tariffs on two US firms

The US imposed tariffs on a number of Chinese products, including consumer and industrial items such as handbags and rice.

China responded in kind, and both sides - the world's two largest economies - ended up imposing tariffs on billions of dollars of goods.

Media captionHas Trump kept his promises?

The US has hit $250bn of Chinese goods with tariffs since July, and China retaliated by imposing duties on $110bn of US products.

Tariffs ended up raising costs for American companies. Analysts say this is one of a number of factors that have put pressure on markets in recent weeks.

What's changed in recent weeks?

In early December, Mr Xi and Mr Trump met after the G20 summit in Buenos Aires for the first time since their trade war started.

Mr Trump agreed not to boost tariffs on Chinese goods from 10% to 25% on 1 January, and the US said China would buy a "very substantial" amount of agricultural, industrial and energy products.

What Trump and Xi's temporary truce means

The details of that deal are yet to be ironed out, however.

Negotiators from both countries have been in touch over recent weeks and face-to-face talks could take place in January.--BBC

Huawei: China accuses UK of 'pride and prejudice'

China has accused the UK of "deep-rooted pride and prejudice" over security fears raised about Huawei.

The Chinese company's chairman has also complained of his firm's "incredibly unfair treatment" abroad.

In recent weeks, the UK's Defence Secretary and chief of MI6 have been among those to warn that use of Huawei's 5G kit poses risks that need fuller consideration.

Australia, New Zealand, Canada, the US and Japan have also flagged concerns.

Experts have warned that the Chinese government could compel the company to disrupt telecom networks that use its equipment or spy on their customers.

But Huawei denies it would ever do so, noting that such action would undermine its business.

Last week, it invited the media to visit its 5G and cyber-security research labs in Dongguan, Guangdong as part of efforts to counter criticism.

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

Huawei's kit removed from emergency services 4G network

Trump could intervene in case of bailed Huawei executive

Huawei: Why has UK not blocked Chinese firm's 5G kit?

Many of Huawei's clients opt for its products over rivals, such as Nokia and Ericsson, on both cost and technical grounds.

In addition, its smartphones have proven popular with the public.

Huawei recently revealed it had shipped more than 200 million handsets in 2018, placing it second only to Samsung in terms of market share.

"We are ahead of others in domains like wireless, optical, data communications, and smart devices," wrote chairman Guo Ping in a New Year's message shared online.

"For 5G markets that choose to not work with Huawei - they will be like an NBA [National Basketball Association] game without star players: the game will go on, but with less deftness, flair, and expertise."

Beijing's criticism of the UK was published in the Global Times, an English-language government newspaper.

It said Ministry of National Defence spokesman Wu Qian had told a press conference that suggestions the Chinese government might compromise Huawei's technologies were "groundless".

It said Wu's comment was made in reaction to UK Defence Secretary Gavin Williamson saying earlier this week that: "We've got to recognise the fact, as has been recently exposed, that the Chinese state does sometimes act in a malign way."

Having made play on a Jane Austen novel title, the newspaper also referenced another popular phrase to offer advice to Huawei, telling it to "calm down and carry on" in a separate editorial.--BBC

Italy budget: Parliament passes budget after EU standoff

Italy's parliament has approved a revised budget for 2019, amid opposition complaints that it was dictated by the EU.

The country's populist government had originally vowed to push through costly campaign promises including a universal basic income.

But in October, the European Commission raised concerns about the impact of such spending on Italy's debt levels.

Rome was told to revise its budget, or face fines and disciplinary action.

Under a deal struck with the Commission last week, Italy lowered its planned budget deficit from 2.4% of GDP to 2.04% - less of a reduction than European officials had hoped for.

The value of its concessions is understood to be a little more than €10bn (£9bn).

The Senate approved the budget last week, and the lower house of parliament passed the revised proposals in a confidence vote on Saturday, with 327 votes in favour, 228 against, and one abstention.

What's behind Italy's economic turbulence?

Opposition lawmakers have complained that the last-minute deal with Brussels left parliament unable to debate the altered proposals.

The centre-left Democratic Party has filed a complaint with Italy's Constitutional Court, and its supporters held a protest outside parliament.

The deadline for passing the budget was 31 December, after which the government would have been forced to continue with the 2018 budget on a monthly basis.

What's in the budget?

Italy's coalition government, made up of the anti-establishment Five Star Movement and right-wing League, has pledged the following:

A new income support scheme known as the "citizens' wage" will pay €780 ($890; £700) a month to 1.7 million of Italy's poorest families. The measure is forecast to cost €7.1bn.

The retirement age will be cut from the current 67 to 62, for workers who have paid into the pension system for 38 years.

More than a million self-employed workers earning under €65,000 a year will see their taxes cut to 15%.

Prime Minister Giuseppe Conte has hailed the budget as "the first step of a broad and ambitious plan of reform" which he said would "turn Italy inside out like a sock" and kick-start economic growth. Critics argue that the plan does not create investment incentives, however.

The European Commission has said it will watch closely to ensure the budget agreement is adhered to. The threat of disciplinary action remains if it is not.--BBC

Tesla adds Larry Ellison to its board

Tesla has appointed Oracle co-founder Larry Ellison and Walgreens Boots Alliance executive Kathleen Wilson-Thompson to its board.

The move further strengthens the board as pledged by founder Elon Musk to the Securities and Exchanges Commission.

The SEC fined Mr Musk over misleading tweets that he had funding to take Tesla private.

Investors greeted the news by sending Tesla shares up more than 4% in morning Friday trading.

Elon Musk remains as chief executive although he agreed with the SEC in October he would step down as chairman.

Larry Ellison is the co-founder and chairman of enterprise cloud software firm Oracle - currently the third largest software maker in the world after Microsoft and Google owner Alphabet.

He already owns three million shares of Tesla stock and is a close friend of Mr Musk.

Iron Man cameo

Actor Robert Downey Jr modelled the character of Tony Stark on Mr Musk for the film Iron Man in 2008, and in 2010, Mr Musk and Mr Ellison famously made cameo appearances in Iron Man 2 as fellow tech billionaires.

Kathleen Wilson-Thompson is the global head of human resources at international pharmacy chain Walgreens Boots Alliance, and was previously an executive at Kellogg.

The new appointments follow November's move by Tesla to appoint Australian telecoms executive Robyn Denholm as its new chairman.

'False and misleading'

In August, Mr Musk posted a tweet saying that he had secured funding to take the electric car maker off the stock market and make it a private company.

He claimed that the funding proposal would value Tesla at $420 per share. Shares in the company briefly rose after his announcement, but later fell again.

The SEC said the claim was "false and misleading", and decided to sue him for alleged securities fraud.

Although he agreed to step down as chairman and pay a $20m (£15m) settlement fine, Mr Musk said recently that he does not respect the SEC.

The SEC settlement follows a turbulent year for Tesla and Mr Musk.

In February, Tesla reported a record quarterly loss, partly caused by the carmaker's revamp of its manufacturing process to boost output of the Model 3.

The revamp was needed after a surge of orders in 2017 saw it struggling to meet manufacturing targets and deliver cars to customers.

This prompted worries about Tesla's finances and fanned concerns that customers would get impatient and cancel their bookings.

In June, Tesla cut 9% of its workforce as part of a restructuring intended to reduce costs and boost profitability.

In October the carmaker reported a quarterly profit for just the third time in its 15-year history.

In a striking and emotional interview to the New York Times in August, Mr Musk said he had not been on drugs when he posted the tweets about taking Tesla private.

He did however say that he was exhausted after working 120 hour weeks, and that the past year had been the "most difficult and painful" of his career.--BBC

US markets mixed after turbulent week

US financial markets were mixed on Friday after a choppy trading session that bounced between gains and losses.

The Dow Jones index sank 0.3% and the S&P 500 fell about 0.1%, but the Nasdaq gained almost 0.1%.

The moves marked a relatively calm end to a wild week of trade, in which US indexes rallied sharply after plunging on Monday.

European markets built on those gains on Friday. The FTSE 100 share index closed up more than 2.2% at 6,733.97.

In Germany, the DAX gained about 1.7%, while France's CAC index also rose about 1.7%.

Many markets have had a dismal year, as investor sentiment soured on fears of decelerating global growth, trade tensions and rising interest rates.

Japan's Nikkei suffered its first annual loss in seven years, while Germany's Dax index closed the year down about 18% - the biggest annual loss in a decade.

On Friday, Japan's Nikkei 225 ended 0.31% lower at 20,014.77, while Hong Kong's Hang Seng index closed flat, at 25,504.20.

In the US, Friday's declines were fairly widespread. However, they spared the consumer discretionary sector, which includes retailers such as Amazon.

Amazon shares jumped more than 1% on Friday, days after the e-commerce giant told investors it had a "record-breaking" holiday season.

Analysts cautioned that movements were exacerbated by the lower dealing levels seen during holiday trading.

US shares have been hit this week by weaker than expected home sales and consumer confidence data.

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.--BBC

Most shoppers mistrust influencers, says survey

Most shoppers do not trust social media influencers, a survey has indicated.

In the research for BBC Radio 4, 82% of people who took part said it was not always clear when an influencer had been paid to promote a product.

The Advertising Standards Authority (ASA) has launched new guidelines to help influencers stick to the rules.

The Competition and Markets Authority (CMA) is also looking at whether social media celebrities admit when they have been paid to promote a product.

The survey of more than 1,000 shoppers was carried out for Radio 4's You and Yours by consumer analysts Savvy Marketing.

It found that 54% of 18-to-34-year-old beauty buyers were influenced by their suggestions.

Alastair Lockhart from Savvy Marketing said: "The shoppers of the UK are a knowledgeable lot and tend to be pretty wise when deciding how much to trust an influencer's recommendations.

"However, we can see from the research that it's not always clear and a lot of younger people in particular are influenced by their suggestions."

Make-up videos

The growth of social media over the past decade has changed marketing and advertising in many ways. A major part of that has been the rise of "social influencers".

Cosmetic brands are spending millions of pounds promoting their brands through influencers. They've moved away from traditional TV and magazine ad campaigns to Instagram and YouTube.

Online celebrities post video tutorials on those sites, demonstrating how to put on make-up and promoting the products they use.

One of the highest-paid YouTube celebrities is Jeffree Star. Forbes magazine estimates that he earned £18m this year.

Star joined YouTube in 2006 after becoming the most followed person on MySpace. He started posting make-up tutorials and quickly became famous for his dramatic looks.

In 2014, Star launched his own cosmetics brand. He has more than 11 million subscribers to his YouTube channel and nearly 10 million followers on Instagram.

Marketing push

The beauty industry has adopted influencer advertising more fervently than any other industry - and it has had a big impact on sales.

In 2017, the beauty and personal care market in the UK was worth more than £13bn, up by 17% in the past five years, according to figures provided by Statista.

L'Oreal group, the world's largest cosmetics company, whose annual global sales amount to €26bn (£23.4bn), spends half of its marketing budget on social media.

The group's director of innovation, Lubomira Rochet, said L'Oreal was embracing influencers.

She said: "Sometimes we consider influencers as our extended marketing teams. They are so creative.

"The return on investment is obviously a bigger concern, especially when you spend 42% of your marketing budget in digital, so we are monitoring the whole area of all our initiatives and influencers are pretty positive."

Sales uplift

The top 10 beauty influencers are all earning hundreds of thousands of pounds from their online posts.

They have become key to selling products - and the impact on sales can be immediate.

Selfridges' beauty director David Legrand said: "When you have an influencer speak about product straight away, almost within an hour of them promoting something, you can see uplift in sales. Brands are trying to influence the influencers or have influencers of their own."

But Mr Legrand warned consumers that it's not always easy to work out when an influencer is being paid and when they aren't: "It's sometimes difficult for the public to work out what is and isn't bias."

MMMMitchell is a make-up artist from Manchester with more than 800,000 followers on Instagram. He says that as soon as you get a lot of followers, cosmetic brands want to work with you.

He told You and Yours: "I've been approached by more and more companies to collaborate with them.

"The more followers you get, the more doors it opens, and that gives me more incentive to grow my followers. I work really hard to build up trust with my followers."

Watchdogs on alert

When a brand rewards an influencer with a payment, free gift, or other perk, any resulting posts become subject to consumer protection law.

When a brand also has control over the content, they become subject to the UK Advertising Code as well.

The UK's advertising watchdog, the ASA, said the rules were clear. It has recently published guidance for online influencers.

For its part, the CMA has launched an investigation into concerns that social media stars are not properly declaring when they have been paid, or otherwise rewarded, to endorse goods or services.

As part of its investigation, the CMA has written to a range of celebrities and social media influencers to gather more information about their posts and the nature of the business agreements that they have in place with brands.--BBC

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

New Years’ Day

01/01/2019

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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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