Major International Business Headlines Brief::: 05 February 2018

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Major International Business Headlines Brief::: 05 February 2018

 


 

 


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*  Botswana's economy seen expanding at faster pace this year

*  A third of S.Africa miners say no new investments in 2018: survey

*  South African private-sector activity shrinks in January: survey

*  South African rand firmer as pressure mounts on Zuma to quit

*  Randgold 2017 profit up 14 pct, doubles dividend

*  Kenya's tea export earnings, output seen rising in 2018

*  Samsung heir freed from S Korea jail

*  Russian oligarchs in UK told to explain luxury lifestyles

*  Dow suffers sharpest drop since June 2016

*  Vodafone eyes European expansion with Liberty Global deal

*  US jobs and wages rise in January

*  Bitcoin braces for worst week since 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Botswana's economy seen expanding at faster pace this year

GABORONE (Reuters) - Botswana’s economy is projected to expand at a faster
pace this year compared to last year as the mining sector benefits from a
recovery in the global economy, Finance Minister Kenneth Matambo said on
Monday.

 

 

Presenting the 2018 budget to parliament, Matambo said GDP growth was
projected at 5.3 percent in 2018 from an estimated 4.7 percent expansion in
2017.

 

Matambo said Botswana’s budget deficit was projected to widen to 3.59
billion pula ($372 million) or 1.8 percent of GDP in the 2018/19 fiscal year
from an estimated deficit of 2.42 billion pula or 1.3 percent of GDP in the
prior year.

 

The country’s fiscal year runs from April to March.

 

“Although the economy is expected to improve in performance, our fiscal
position remains tight and government will continue to manage expenditure,”
Matambo said.

 

“Government sees the expected deficit to be temporal and will therefore be
financed by a combination of drawing down on existing loans and cash
reserves.”

 

($1 = 9.6525 pulas)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


A third of S.Africa miners say no new investments in 2018: survey

CAPE TOWN (Reuters) - A third of South Africa’s largest mining companies are
not considering any new investments in the sector in 2018 while one of them
may even decide to pull out of the country, according to an industry survey
unveiled by the Chamber of Mines on Monday.

 

 

The mining sector in the world’s top platinum producer has in the recent
years been hit by soaring wage and power costs, depressed prices, violent
social and labour unrest apart from policy uncertainties.

 

Underscoring the tough environment, the industry has shed 70,000 jobs in the
past five years, with around 465,000 currently employed.

 

The survey of 16 companies accounting for over 80 percent of national mining
output included all of the big players such as Anglo American and
Sibanye-Stillwater.

 

“Some specific company responses were particularly sobering,” the chamber
said in a presentation at the Africa mining conference in Cape Town.

 

“Five companies responded that they were not considering any potential new
investments, with one company contemplating from divesting from South Africa
entirely - a decision which will be taken in 2018, if the situation does not
improve,” it said.

 

 

 

South African private-sector activity shrinks in January: survey

JOHANNESBURG, Feb 5 (Reuters) - South African private sector

 

activity shrank in January due to declines in output, new orders and
exports, even though the rate of deterioration in business conditions eased
from December, a survey showed on Monday.

 

The Standard Bank Purchasing Managers’ Index (PMI), compiled by Markit, rose
to 49.0 in January from 48.4 in December, staying below the 50 mark that
separates expansion from contraction.

 

“The private sector PMI for January 2018 indicated that domestic business
conditions continued to deteriorate albeit at a slower rate,” Standard Bank
economist Thanda Sithole said.

 

“In our view, the uptick in the private sector PMI toward the 50-point mark
is in itself a positive signal and we expect continued uptick over the
coming months premised on improved economic optimism following the improving
domestic political backdrop.”

 

Investor confidence in South Africa has improved since Deputy President
Cyril Ramaphosa was elected the new leader of the governing African National
Congress party in December, succeeding President Jacob Zuma.

 

 

South African rand firmer as pressure mounts on Zuma to quit

JOHANNESBURG (Reuters) - South Africa’s rand firmed slightly on Monday after
the governing African National Congress (ANC) party met President Jacob Zuma
late on Sunday amid growing pressure for the leader to step down as head of
state.

 

 

Randgold 2017 profit up 14 pct, doubles dividend

LONDON (Reuters) - African gold miner Randgold on Monday reported 2017
profit up 14 percent at $335 million thanks to increased production and said
it would double its annual dividend.

 

The company, which has operations in Ivory Coast, Democratic Republic of
Congo, Mali and Senegal, also said its cash pile had increased 39 percent to
$720 million by the end of the year and the company had no debt.

 

 

Kenya's tea export earnings, output seen rising in 2018

NAIROBI (Reuters) - Kenya’s tea export earnings are forecast to rise further
this year, while total output is expected to improve after a fall in
production last year, the Agriculture and Food Authority’s Tea Directorate
said on Monday.

 

Export earnings will rise 5 percent in 2018 to 135 billion shillings ($1.33
billion), while total output is expected to hit 452 million kg buoyed by
good weather conditions, after drought had cut the country’s production in
2017, the directorate said in a statement.

 

The East African nation is the biggest exporter of black tea in the world,
and tea is also the leading source of foreign exchange.

 

Total export earnings rose to 129 billion shillings in 2017 - the highest in
five years - from 120 billion shillings a year earlier, while total output
was down 7 percent to 439 million kg.

 

Drought hit many parts of Kenya’s farming areas in early 2017, affecting the
output of tea while processing factories received fewer deliveries.

 

Export volumes were seen rising slightly to 423 million kg this year from
415 million kg a year ago, the directorate added.

 

The average price per kg of tea at the Mombasa-based auction was expected to
rise to $3 per kg from $2.98 per kg last year.

 

($1 = 101.6000 Kenyan shillings)

 

 

Samsung heir freed from S Korea jail

Samsung heir Lee Jae-yong has been freed from jail after a South Korean
court suspended his five year jail term for bribing the country's
ex-president.

 

An appeals court upheld parts of the conviction, but used its discretion to
release the executive.

 

The decision is likely to be appealed again to the country's supreme court.

 

The case gripped the public amid growing anger against the country's biggest
companies, known as chaebols, and their influence on wider society.

 

Scandal

Last year a lower court jailed Lee for corruption in a political scandal
that ultimately brought down former President Park Geun-hye.

 

The Samsung Electronics vice chairman, who is also known as Jay Y Lee, had
appealed against both the verdict and sentence. He had been convicted of a
range of offences including bribery and embezzlement.

 

The scandal exposed the ties between family-run conglomerates and political
powers.

 

Samsung Electronics is regarded as the jewel in the crown of the Samsung
Group conglomerate, which is made up of 60 interlinked companies.

 

Lee, 49, has effectively directed operations at the mobile phone and chip
maker since his father, Lee Kun-hee, was incapacitated by a heart attack in
2014.

 

'A dramatic turnaround'

 

A dramatic turnaround in fortunes for Samsung scion Lee Jae-yong.

 

There were many outcomes that could have taken place today. But it would be
fair to say that Lee walking out of jail was the one that was least likely.

 

Lee's release will be a major relief to the world's biggest smartphone maker
and arguably the most important company in Corporate Korea.

 

Sources inside Samsung tell me that while the company hasn't seen its share
price or profits affected in the short term from Lee's absence, long term it
was going to struggle, especially with strategy and future direction.

 

And you can see the immediate impact of that from the pop in Samsung's share
price this Monday - a sign that investors are looking forward to Lee back in
the driving seat.

 

But there are also political consequences to this latest move.

 

South Korea's President Moon Jae-in won office by campaigning to clean up
the powerful chaebol sector in Korea. But many will see the court ruling as
effectively a get-out-of-jail card for Lee that goes against everything the
president stood for.--BBC

 

 

Russian oligarchs in UK told to explain luxury lifestyles

Russian oligarchs suspected of corruption will be forced to explain their
luxury lifestyles in the UK, the security minister has said.

 

As part of an organised crime crackdown, Ben Wallace told The Times
officials could now seize suspicious assets worth more than £50,000.

 

He added wealthy foreign criminals would feel the "full force of
government".

 

It is estimated £90bn of illegal cash is laundered in the UK each year.

 

The real story of the world's McMafias

What can be done about London's dirty money?

Unexplained Wealth Orders, which came into force on 31 January, force
wealthy people to explain the source of their assets if there is reason to
suspect corruption.

 

They allow government officials to keep hold of assets including property
until they have been properly accounted for.

 

In the interview with the paper, the security minister warned: "We will come
for you, for your assets and we will make the environment you live in
difficult."

 

Dozens of targets have already been identified, according to The Times.

 

Mr Wallace commended BBC drama McMafia's "really good portrayal" of the
international nature of organised crime.

 

"Beneath the gloss there is real nastiness," he said.

 

"So far it's very close to the truth, the international nature of organised
crime and the impunity with which some of these people operate and the
brutality of it, is absolutely correct."

 

He then referred to the so-called Laundromat case - a scheme in which fake
companies mainly based in the UK were used to launder Russian cash through
Western banks.

 

"The government's view is that we know what they are up to and we are not
going to let it happen anymore," he said.

 

What are Unexplained Wealth Orders?

An Unexplained Wealth Order is a civil, investigative power, which requires
people to explain the ownership of certain assets - but does not alone allow
for a seizure

Only "enforcement agencies" can apply for an Unexplained Wealth Order. In
England and Wales these include the National Crime Agency, HMRC, and the
Financial Conduct Authority

It is an offence to produce false evidence in response

Evidence obtained through an Unexplained Wealth Order can then be used in
any further civil or criminal proceedings--BBC

 

 

Dow suffers sharpest drop since June 2016

The blue chip Dow Jones Industrial Average suffered its steepest decline
since June 2016 on Friday, amid wider losses in US markets.

 

The fall came after a string of disappointing earnings reports from giants
such as Apple.

 

Strong wage growth in the latest payrolls data also spooked investors
raising the possibility of higher interest rates than expected.

 

The Dow fell more than 665 points or 2.5% to 25,520.96.

 

The S&P 500 tumbled 59.8 points, falling 2.12% to 2,762.13, while the Nasdaq
closed 144.91 points lower at 7,240.9, down 1.96%.

 

The losses touched every sector, with the steepest declines in energy and
technology stocks.

 

Chevron and Exxon, which both reported quarterly earnings to investors on
Friday, were the two biggest losers on the Dow, falling more than 5%.

 

Apple, which reported after the close of trading on Thursday, was number
four, retreating 4.3%.

 

Stocks were also rattled as the yield on the 10-year Treasury note hit a
four-year high after Friday's payrolls report.

 

The gain in bond yields, which come as central banks globally ease stimulus
programmes and raise rates, have touched off fears that stocks could become
a less attractive investment, while signalling higher borrowing costs that
could crimp consumer activity.

 

Analysts said markets may also be responding to outstanding political and
policy issues, such as trade tensions with partners such as China and how
tax cuts will shift corporate financial strategies.

 

"There are still a number of question marks on the side of fiscal policy,"
said Lindsey Piezga, chief economist at Stifel Fixed Income.

 

'Real investing activity'

For the week, the Dow fell 4%, while the Nasdaq and S&P 500 each slipped by
more than 3%.

 

Analysts cautioned against reading too much into the market declines, which
follow a massive rally in 2017 that was fuelled by a strengthening global
economy and high expectations for US corporate tax cuts.

 

The three major stocks indexes also closed January up more than 5%.

 

The Dow, which tracks about 30 major companies, in particular is not a good
gauge, said Brian Barnier, head of analytics at Valuebridge Advisers.

 

"It's very important to separate trading activity from real investing
activity," said Mr Barnier, who also teaches at the Colin Powell School at
the City College of New York.

 

Assuming they have well-designed portfolios, "mom and pops sitting at
home... should not be concerned, given the massive run up in the market," he
added.--BBC

 

 

Vodafone eyes European expansion with Liberty Global deal

Vodafone Group, the UK-based telecoms giant, has said it is in talks to buy
some European assets owned by US cable company Liberty Global.

 

The firm said the discussions were at an "early stage" and there was "no
certainty" the deal would go through.

 

The talks concern assets in markets where the firms overlap, including
Germany, Czech Republic, and Hungary.

 

Vodafone emphasised that the talks were not about a merger with Liberty,
which owns Virgin Media.

 

Vodafone, founded in the 1980s, operates in more than 30 countries and
boasts more than 400 million customers globally.

 

The company has historically focused on cellular mobile phone services, but
has more recently been expanding its fibre infrastructure, which supports
faster internet and data downloading.

 

Liberty Global is an international television and broadband company that
operates in more than 30 countries under names that include Virgin Media,
and Telenet.

 

The company, run by billionaire John Malone, operates in 12 countries in
Europe and also has a joint venture with Vodafone in the Netherlands.

 

The share prices in both companies increased after Vodafone's announcement.

 

'No certainty'

The telecoms industry has been going through a period of deal-making as
phone companies attempt to offer their customers packages of television,
broadband, mobile and traditional phone services.

 

Vodafone issued its statement on the talks after a media report that the two
companies were discussing swapping some assets.

 

The two companies had similar discussions in 2015 that ended without a deal.

 

"Vodafone confirms that it is in early stage discussions with Liberty Global
regarding the potential acquisition of certain overlapping continental
European assets owned by Liberty Global," it said.

 

"There is no certainty that any transaction will be agreed, nor as to the
terms, timing or form of any transaction. Vodafone is not in discussion with
Liberty Global regarding a combination of both companies."--BBC

 

 

US jobs and wages rise in January

The US labour market barrelled forward in January, as employers added more
jobs than expected and wage growth was its strongest in more than eight
years.

 

US payrolls expanded by 200,000 last month, driven by hiring in
construction, food services and health care, the US Labor Department said.

 

The average hourly wage for private sector workers crept up 2.9% compared to
January 2017.

 

The unemployment rate held steady at 4.1%.

 

Economists have puzzled over lacklustre wage growth, which has lagged in
prior months despite the decline in the unemployment rate.

 

Without higher wages, economists have warned that economic growth will be
difficult to sustain, since consumer spending plays a large role in the US
economy.

 

The Labor Department report, released on Friday, showed average hourly
earnings for private sector workers rose 9 cents in January, to $26.74. For
the year, the increase was 75 cents.

 

The wage uptick coincided with mandatory minimum pay increases in 18 states.
Major employers such as Walmart have also said they planned to boost
earnings or provide bonuses.

 

Those factors may have helped lift last month's numbers, but they make it
harder to say if the increases will continue, said Lindsey Piezga, chief
economist for fixed income at Stifel, based in Chicago.

 

"While that is encouraging, what we really need to see is sustained wage
growth, not one-off, month-to-month volatility," she said.

 

Other data in the report was a reminder that monthly gains can be fleeting.

 

For example, the unemployment rate among black workers jumped in January to
7.7%, rising after falling to a record low of 6.8% in December.

 

President Donald Trump had trumpeted that decline as evidence of economic
improvement.

 

Slowing momentum?

The US is now in its ninth year of expansion and has been adding jobs
steadily since 2010.

 

The increases in January occurred across most industries, a sign of solid
growth.

 

The pace of hiring is slowing, however.

 

Over the last three months, payrolls increased by an average of 192,000
jobs, compared to over 200,000 in the same period the prior year.

 

"I don't think we should be too excited about this," said Ms Piezga.

 

"The momentum of the US economy is waning. We're still talking about
positive growth, positive job creation, but at a slower pace."

 

Economists have said some slowdown in job creation is to be expected as new
workers become harder to find.

 

Despite a relatively high number of job openings, participation in the
labour force has remained stuck below 63%, several percentage points lower
than it was before the financial crisis.

 

US stock indexes slid after the report.

 

Analysts said part of the decline was due to investor reaction to the wage
increase, which is likely to keep the Federal Reserve on track to raise
interest rates - and could make policymakers move more aggressively.

 

The Fed is one of several central banks that are turning from policies that
were designed to boost economic activity in the aftermath of the financial
crisis.--BBC

 

 

Bitcoin braces for worst week since 2013

Digital currency Bitcoin has fallen 30% this week, leaving it on track for
its worst week since April 2013.

 

On Friday the price fell below $7,910 on the Bitstamp exchange, a 12% fall
on the day before, but recovered slightly.

 

But although it is far short of the $19,000 it reached in November 2017, it
is still way above the $1,000 level at which it started trading last year.

 

The fall comes amid a number of recent incidents that appear to have shaken
faith in cryptocurrencies.

 

On Friday, Japan's financial regulator carried out a surprise check on major
Japanese exchange, Coincheck, which last week was subject to a security
hack.

 

The regulator said it had asked the exchange to fix flaws in its computer
networks well before last week's theft by hackers of $530m of digital money.

 

Also this week, Facebook said it would ban adverts for digital currencies.

 

What's the fuss about Bitcoin?

Other countries have already expressed concerns about such entities. China
and South Korea have banned any new virtual currency launches and have been
shutting down exchanges on which they are traded.

 

The UK's Financial Conduct Authority warned investors in September they
could lose all their money if they buy digital currencies issued by firms,
known as "initial coin offerings".

 

Bitcoins are created through a complex process known as "mining", and then
monitored by a network of computers across the world.

 

However, like all currencies its value is determined by how much people are
willing to buy and sell it for.

 

Last year, two of the world's largest commodity exchanges, the CBOE futures
exchange and the Chicago Mercantile Exchange, both allowed trading in
Bitcoin futures.

 

Bitcoin is the most widely traded cryptocurrency, but there are scores of
others, the majority of which also fell on Friday, according to the
Coinmarketcap.com price tracker.

 

The second and third largest virtual currencies, Ethereum and Ripple,
plunged more than 20%, before a slight pull-back in the price.--BBC

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 


 

 

 

 


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for guideline purposes only and sourced from third parties.

 


 

 


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